0:00:02 > 0:00:05It's not just properties in poor condition that end up at auctions.
0:00:05 > 0:00:09Because in today's market you never know what you're going to find.
0:00:09 > 0:00:14We'll be bringing you examples from auction catalogues around the country to whet your appetite.
0:00:40 > 0:00:44Now, if you're looking for a quick buy, an auction can be a great place to start.
0:00:44 > 0:00:49Once the gavel falls, you know the property is yours if you come up with the funds.
0:00:49 > 0:00:53So who went for the auction-buying option on today's show?
0:00:54 > 0:00:58You'd be wise not to turn your nose up at this flat in London.
0:00:58 > 0:01:03Forget the smell, the proportions are great!
0:01:04 > 0:01:07There's a mystery to solve at this house
0:01:07 > 0:01:10near Newcastle-under-Lyme in Staffordshire.
0:01:10 > 0:01:13It's got me very, very confused.
0:01:15 > 0:01:18And in the seaside town of Ramsgate
0:01:18 > 0:01:21perhaps water really can be too close to hand.
0:01:21 > 0:01:24Now look at that, wet to the touch.
0:01:25 > 0:01:29All these properties have been sold at auction. We'll find out who bought them
0:01:29 > 0:01:33and what they paid for them when they went under the hammer.
0:01:35 > 0:01:40Today I'm in south-east London to see a property that the auction
0:01:40 > 0:01:43catalogue description says is in Penge.
0:01:43 > 0:01:46Now it's always worth checking these descriptions thoroughly
0:01:46 > 0:01:50because in fact the area is Crystal Palace and that's great news.
0:01:50 > 0:01:55Now, in 2010 the East London Line extension is due for completion
0:01:55 > 0:01:59with a station right here at the Crystal Palace overland.
0:01:59 > 0:02:03There will be a fast and direct route into the city and this part
0:02:03 > 0:02:06of London will feel much more linked to the rest of the capital.
0:02:06 > 0:02:10So it's always worth doing your research.
0:02:10 > 0:02:13I love this largely undiscovered part of town.
0:02:13 > 0:02:15It's got a fabulous 200-acre park
0:02:15 > 0:02:19and prices are still quite reasonable considering you can be
0:02:19 > 0:02:23in central London in just under 20 minutes.
0:02:23 > 0:02:27Location and transport links get my vote. What about the property itself?
0:02:27 > 0:02:29Here on Hamlet Road I'm only a stone's throw
0:02:29 > 0:02:33from the train station, which is a great start,
0:02:33 > 0:02:37and another is this beautiful tree-lined street.
0:02:37 > 0:02:42The Victorians were captivated by the open space and the greenery of this part of London
0:02:42 > 0:02:45and they built a large number of these grand, imposing villas,
0:02:45 > 0:02:49many of which have now been split into separate units.
0:02:49 > 0:02:52Here's the property that's up for auction, a two-bedroom,
0:02:52 > 0:02:57lower ground-floor flat with a rather attractive guide price of 135,000.
0:02:58 > 0:03:03What isn't attractive is the scruffy communal garden,
0:03:03 > 0:03:08'which doesn't exactly add to the kerb appeal. And let's face it, here you're almost below the kerb.'
0:03:09 > 0:03:12Now, for me, the worry with lower ground floor flats
0:03:12 > 0:03:15is that they will be dark and damp.
0:03:15 > 0:03:19It's only four steps down to the door here, but do you know what?
0:03:19 > 0:03:21I can really smell damp in here.
0:03:21 > 0:03:27That's not unexpected but I'll be keeping my eyes peeled for the cause of the problem.
0:03:27 > 0:03:29So into the reception room.
0:03:29 > 0:03:32Do you know what, forget the smell,
0:03:32 > 0:03:34the proportions are great!
0:03:34 > 0:03:37If all the rooms are like this, we're onto a winner here.
0:03:38 > 0:03:40And they definitely are.
0:03:40 > 0:03:43Each room is an excellent size.
0:03:43 > 0:03:46The master bedroom is almost as big as the lounge and the second bedroom
0:03:46 > 0:03:49is a lovely square shape, but the decor is shabby.
0:03:49 > 0:03:52It reminds me of a rather dated school classroom.
0:03:52 > 0:03:56However with those large windows letting in plenty of light,
0:03:56 > 0:03:59careful redecoration would transform this place.
0:03:59 > 0:04:02This kitchen needs a complete overhaul,
0:04:02 > 0:04:06but again this room along with the others has a nice symmetry
0:04:06 > 0:04:09to it, and with some careful design and good quality units,
0:04:09 > 0:04:13some granite, some solid wood, you'd easily attract those city boys,
0:04:13 > 0:04:18who'll be flocking to Crystal Palace when the new train line opens.
0:04:18 > 0:04:21There's another extra room here but it's a bit of an odd one.
0:04:21 > 0:04:23It's too tiny to be called a bedroom
0:04:23 > 0:04:26but would certainly make a great study.
0:04:26 > 0:04:28But it's not the only thing I've noticed here.
0:04:28 > 0:04:30That's right - the first evidence of damp.
0:04:30 > 0:04:35This needs to be checked out to see if it's the root cause or sign of bigger problems.
0:04:35 > 0:04:38Another drawback is security.
0:04:38 > 0:04:42With easily accessed windows on all sides, this could be a bit of an issue.
0:04:42 > 0:04:47But at a guide price of 135,000 there's scope for an attractive investment here.
0:04:52 > 0:04:56I asked a local estate agent what he thought of the flat.
0:04:56 > 0:04:59A solid flat, it's a nice big solid flat.
0:04:59 > 0:05:02It's got two very good sized double bedrooms and a third boxroom.
0:05:02 > 0:05:07It's a great flat. It's solid. Doesn't need bundles of work but it does need some updating.
0:05:07 > 0:05:11'Looking at the third room, which is a small boxroom, that is an issue.
0:05:11 > 0:05:15'However it can fit a single bed in it so it would make a great kid's room or a baby's room,'
0:05:15 > 0:05:21or somebody could use it as an office which is fine, but you can market it as a three-bed, I believe.
0:05:21 > 0:05:23I'm not so sure about that myself.
0:05:23 > 0:05:26At best I think this ranks as a two-and-a-half bedroomed flat,
0:05:26 > 0:05:30but if it was marketed as a three-bed, what could it sell for?
0:05:30 > 0:05:35Once renovated as a three-bed I believe the property could sell for around the £275,000 mark.
0:05:35 > 0:05:41The biggest problem we have at the moment with the current market is the stamp duty level at 250,000, and that
0:05:41 > 0:05:46may push the price down to that level but I do believe if it was at 250,000 it would sell for around that price.
0:05:46 > 0:05:53At that attractive £135,000 guide price, this could prove to be a good deal. What's the rental potential?
0:05:53 > 0:05:58As a three-bedroomed flat I'd say around 1,200 per calendar month mark.
0:06:01 > 0:06:04Well, is it to be or not to be,
0:06:04 > 0:06:08for this lovely flat on Hamlet Road?
0:06:08 > 0:06:13It's hardly a tragedy but that damp problem isn't a laughing matter.
0:06:13 > 0:06:15Let's see who saw the potential at the auction.
0:06:18 > 0:06:24Lot 23 is 25A Hamlet Road,
0:06:24 > 0:06:25Penge, SE19.
0:06:25 > 0:06:29Where do you want to start? I think it's worth 150, but you tell me.
0:06:29 > 0:06:32Start the other way, 120.
0:06:32 > 0:06:34Not going to go below 120.
0:06:34 > 0:06:38120, 125 anywhere?
0:06:38 > 0:06:44121? 121, 122, 123,
0:06:44 > 0:06:47124, 125,
0:06:47 > 0:06:49126, 127, 128,
0:06:49 > 0:06:54129, 130, 131,
0:06:54 > 0:06:58132, 133,
0:06:58 > 0:07:02134, 135... 136?
0:07:02 > 0:07:04135 with you.
0:07:04 > 0:07:09136, new spot, 136, 137, 138,
0:07:09 > 0:07:13139, 140,
0:07:13 > 0:07:16141... 142? Back,
0:07:16 > 0:07:22141... Anyone else at £141,000?
0:07:22 > 0:07:27First time, second time, third and last time, have you all done?
0:07:27 > 0:07:30Withdraw that lot, you're close.
0:07:30 > 0:07:33No one seemed willing to bid any higher there
0:07:33 > 0:07:39but the first bidder, Steve, had a post-auction offer of £140,000 accepted.
0:07:39 > 0:07:43Steve's had 27 years in the building trade and used to live locally
0:07:43 > 0:07:47but several years ago he relocated to Ireland with his family.
0:07:47 > 0:07:53He's now in the process of moving back, but has always invested in his old stamping ground.
0:07:53 > 0:07:55I met up with him to find out more.
0:07:56 > 0:07:59Steve, congratulations.
0:07:59 > 0:08:02I love this flat. It's got a really nice feeling to it, hasn't it?
0:08:02 > 0:08:04Oh, yeah, it's beautiful.
0:08:04 > 0:08:06So why did you end up with this flat at auction?
0:08:06 > 0:08:09Well, I actually looked at it for a couple of friends of mine,
0:08:09 > 0:08:16who asked me to look at it. And when I met them at the auction they didn't have the money to bid for it,
0:08:16 > 0:08:19- so I did. - Are they still your friends?
0:08:19 > 0:08:20I spoke to them this morning.
0:08:20 > 0:08:22Yeah, they are!
0:08:22 > 0:08:25One man's failure is another man's fortune
0:08:25 > 0:08:29and Steve was in the right spot at the right time to bag this one.
0:08:29 > 0:08:32# You can go your own way
0:08:32 > 0:08:34# Go your own way... #
0:08:34 > 0:08:38But fate works in mysterious ways and when it came
0:08:38 > 0:08:43to that run-down garden, lady luck seemed to be on Steve's side.
0:08:43 > 0:08:48The garden didn't come with the long lease that the freeholders created when they sold the unit,
0:08:48 > 0:08:53so I've subsequently spoken to them and they're going to include it in the leasehold at no charge, in fact.
0:08:53 > 0:08:55- You are joking!- No.
0:08:55 > 0:08:58So you've just got yourself a piece of garden. How did you do that?
0:08:58 > 0:09:01Just was very nice on the phone to the freeholders,
0:09:01 > 0:09:03who happened to be a housing association,
0:09:03 > 0:09:06- and yeah, very lucky. - You are very lucky.
0:09:06 > 0:09:12That doesn't happen that often, that you can just get yourself a piece of garden without having to pay for it.
0:09:12 > 0:09:16Who's currently upkeeping all the gardens, anyway?
0:09:17 > 0:09:21Well, the freeholder said that it was a kind of a joint maintenance thing
0:09:21 > 0:09:23with everybody else in the block,
0:09:23 > 0:09:27but I think you've seen yourself that nobody is maintaining the gardens,
0:09:27 > 0:09:31so I think they'll be quite pleased for me to get involved and do that.
0:09:31 > 0:09:35With Steve's charm he might be able to get the other residents to maintain his garden.
0:09:35 > 0:09:38# He's a sweet talking guy Sweet-talking guy... #
0:09:40 > 0:09:45But joking apart, this addition to the flat has meant a rethink on his plans.
0:09:45 > 0:09:50So now are you looking at this flat in a different light completely?
0:09:50 > 0:09:53Yeah, I think I'll change what I originally thought I'd do.
0:09:53 > 0:09:57So we'll go into the garden from this room in fact, probably put a terrace
0:09:57 > 0:10:01outside and we'll have a sort of inside/outside living space here.
0:10:01 > 0:10:03Now this is in a conservation area.
0:10:03 > 0:10:08Do you think you'll have a few problems with planning because of that?
0:10:08 > 0:10:12I'll have to get consent to do it, but I don't suppose that will be a big problem.
0:10:12 > 0:10:14I've done similar things locally.
0:10:14 > 0:10:19Let's talk about the very small boxroom because that's the only downside in this flat.
0:10:19 > 0:10:22There's not a lot you can do with that unless you have it as an office.
0:10:22 > 0:10:27Perhaps we'll move the kitchen into it and open up this wall behind here
0:10:27 > 0:10:30and integrate this room and the kitchen together.
0:10:30 > 0:10:33A great idea. Creating an open-plan kitchen diner
0:10:33 > 0:10:37would free up the old kitchen to become a usable third bedroom.
0:10:37 > 0:10:41But as it's on the lower ground floor, Steve would have to be careful about checking
0:10:41 > 0:10:44which are the supporting walls.
0:10:44 > 0:10:50He's only got £10,000 to £15,000 set aside, which could easily escalate if he goes ahead with these plans.
0:10:50 > 0:10:55But there's also potentially a big problem that could affect that budget.
0:10:55 > 0:10:59Also you've got a few damp problems, you can really smell it, it's very musty.
0:10:59 > 0:11:02But you're a builder. Tell me what you know.
0:11:02 > 0:11:07Well, I'm not sure whether we've got a real damp problem in here or whether it's just condensation
0:11:07 > 0:11:11from the building being empty. I'll have to have a proper look at that.
0:11:11 > 0:11:14We'll expose that and see what's got to be done.
0:11:14 > 0:11:18The market is a bit wobbly at the moment, a lot of developers are buying and keeping
0:11:18 > 0:11:22hold of it for the long term. How do you feel about this property?
0:11:22 > 0:11:27If I need to keep it, I'll keep it, but my preference would be to sell.
0:11:27 > 0:11:30We'll have a look at how the market is in the new year.
0:11:33 > 0:11:40I think this is a great flat and the addition of that garden, well, it makes it even better.
0:11:40 > 0:11:45And that damp, well, it obviously needs to be addressed. But, still, I think it's a great buy.
0:11:45 > 0:11:48Find out how he gets on later in the programme.
0:11:50 > 0:11:54This is Blackbrook, a little hamlet
0:11:54 > 0:11:59just outside Newcastle-under-Lyme in Staffordshire.
0:12:00 > 0:12:03What I'm here to see is this!
0:12:03 > 0:12:08It's a three-bedroomed detached house at a guide price of £180,000,
0:12:08 > 0:12:12which given the size of it and the amount of land it's in...
0:12:12 > 0:12:14definitely worth a look!
0:12:18 > 0:12:23Well, that's interesting. For such a big house you expect a slightly grander entrance, I have to say.
0:12:23 > 0:12:26It's very cramped, stairs up to the bedrooms there,
0:12:26 > 0:12:30a little corridor leading off to a sitting room there
0:12:30 > 0:12:33and then through to what is, I guess, the main living room here.
0:12:33 > 0:12:35It's not a bad size space.
0:12:35 > 0:12:40Nice to see it's got a real fire but I tell you what, I wish it was lit today.
0:12:40 > 0:12:43It's absolutely freezing in here, which probably isn't helping
0:12:43 > 0:12:45with the general feeling of damp.
0:12:45 > 0:12:48And, yes, look at that wall... that's not good news.
0:12:48 > 0:12:52The other thing that you notice straightaway in here is, wow,
0:12:52 > 0:12:56that is crying out for some French windows or maybe patio doors,
0:12:56 > 0:12:58leading out onto the garden.
0:12:58 > 0:13:01That really would transform this room.
0:13:01 > 0:13:05But another room that's going to need some work is the kitchen.
0:13:05 > 0:13:07I say kitchen, it's just a box at the moment.
0:13:07 > 0:13:10It's not a bad-sized space.
0:13:10 > 0:13:16On further investigation, you see this place is really dark and dingy.
0:13:16 > 0:13:19It looks and feels as though it hasn't been occupied
0:13:19 > 0:13:22for quite a while and the elements have started to take their toll.
0:13:22 > 0:13:27But it's not just the state of the house that's a cause for concern.
0:13:27 > 0:13:29There's something very odd about the layout.
0:13:29 > 0:13:32The extension, which should be useful,
0:13:32 > 0:13:35can only be reached by going outside and then back in.
0:13:35 > 0:13:38This is a bit weird. What's going on here?
0:13:38 > 0:13:42There's a room there and that's actually the rear of the staircase of the other part of the house.
0:13:42 > 0:13:48You've got this one room, it's got a fireplace there, it's got a toilet
0:13:48 > 0:13:52over that way, it's got its own entrance, it doesn't have any stairs
0:13:52 > 0:13:55or anything up to the next floor up.
0:13:55 > 0:14:00And this is the only way to the rest of the property, through this door.
0:14:00 > 0:14:03It's got me very, very confused.
0:14:03 > 0:14:05What on earth is this for?
0:14:05 > 0:14:10Mm, really strange. This extension is joined on the outside
0:14:10 > 0:14:12but not connected on the inside.
0:14:12 > 0:14:16It's almost a separate granny annexe or work area. I can't figure it out.
0:14:16 > 0:14:20Maybe the rest of the house will offer some more clues.
0:14:23 > 0:14:25Boy, oh, boy!
0:14:26 > 0:14:30OK, well, upstairs here, obviously some serious problems.
0:14:30 > 0:14:34Looks like fire damage, which could explain why it's an auction property.
0:14:34 > 0:14:37But in terms of layout I really like it.
0:14:37 > 0:14:41You've got the loo and bathroom there, a bedroom there with beautiful views
0:14:41 > 0:14:44out onto the countryside and a really funky kind of shape.
0:14:44 > 0:14:49Nice feeling down here and then another bedroom there,
0:14:49 > 0:14:52but - boy, oh, boy - are there problems in this room!
0:14:52 > 0:14:55Look at that. The rafters have gone
0:14:55 > 0:14:59and I guess the underfelt has also been destroyed.
0:14:59 > 0:15:03Clearly this is the epicentre of the fire. You're going to have to have that checked out
0:15:03 > 0:15:08because you don't know what kind of damage, it could even be that the roof is now unstable,
0:15:08 > 0:15:12so, yes, that is not good news.
0:15:12 > 0:15:16All in all, this place is in a sorry state.
0:15:16 > 0:15:19# Burning down the house... #
0:15:19 > 0:15:25If I were buying this, I'd look on the whole property as a development opportunity.
0:15:25 > 0:15:29Knock it all down and start again.
0:15:29 > 0:15:32With the size of the plot, you might be able to get two
0:15:32 > 0:15:36or even three homes on here. What does a local estate agent think?
0:15:37 > 0:15:39I feel the property should stay
0:15:39 > 0:15:43much as it is. You could possibly extend it and turn it
0:15:43 > 0:15:45into a four-bedroomed property.
0:15:45 > 0:15:49You could potentially split the garden off to put another property on
0:15:49 > 0:15:54and still give you a good-sized property with a good-sized garden to this property as well.
0:15:54 > 0:16:01That's an interesting alternative option but wouldn't it have a negative effect here?
0:16:01 > 0:16:05The property as it stands, done completely, in the current market
0:16:05 > 0:16:08would fetch somewhere between 325 to 350.
0:16:08 > 0:16:13If you were to split it up and sell the land separately I think it would bring this property down to somewhere
0:16:13 > 0:16:19in the region of around £300,000 and then obviously your profit from your land and the building.
0:16:19 > 0:16:25The land on its own would probably fetch somewhere in the region of around £70,000, thereabouts.
0:16:25 > 0:16:29What sort of value would a new-build house have?
0:16:29 > 0:16:32I'd suggest again you'd be looking somewhere in the same price
0:16:32 > 0:16:36to what this property would drop down to, of around the £300,000 mark.
0:16:36 > 0:16:40That approach could net over £600,000.
0:16:40 > 0:16:47This property was guided at 180,000, so even with build costs there could be a big return for a developer.
0:16:49 > 0:16:56So, an interesting property in a beautiful location, with this rather intriguing separate bit on the edge.
0:16:56 > 0:17:01But you know what, the value of this place is not in the house, it's in the plot of land. It's huge.
0:17:01 > 0:17:06If you knock this down and built something else here, another property by the side of it,
0:17:06 > 0:17:09you're on for making potentially a lot of money.
0:17:09 > 0:17:13I'm sure that's what got them excited when it went to the auction.
0:17:17 > 0:17:22Lot number 23, we now move to Blackbrook near Newcastle-under-Lyme.
0:17:23 > 0:17:25160, can I say?
0:17:28 > 0:17:31Against the wall, back, £160,000 opening bid.
0:17:31 > 0:17:34170, can I say? 170, yeah?
0:17:34 > 0:17:40£170,000, £180,000...
0:17:40 > 0:17:42At 190, at 190...
0:17:42 > 0:17:45200? At 200,000...
0:17:45 > 0:17:49210, right, 211, 211...
0:17:50 > 0:17:52212, sir?
0:17:53 > 0:17:57212... 213?
0:17:57 > 0:18:01New bidder, right, now. 213.
0:18:01 > 0:18:05On the back wall, 214. 215?
0:18:05 > 0:18:08215... 216...
0:18:08 > 0:18:10217, sir?
0:18:11 > 0:18:13You sure?
0:18:13 > 0:18:16OK, 216, with you on the back row again.
0:18:16 > 0:18:22At 216,000, then, for the first time, at 216 for the second time,
0:18:22 > 0:18:29third and final time at £216,000...
0:18:31 > 0:18:33On the back row, well done.
0:18:36 > 0:18:43After quite a battle, the victorious bidder for the house and land for 216,000 was David.
0:18:43 > 0:18:49I met him back at the fire-damaged property to find out why he was so determined to get it.
0:18:52 > 0:18:56- Dave, nice to meet you.- Hi, Martin. - Congratulations.
0:18:56 > 0:19:00- Thank you.- So, big house, big plot, why did you want to buy it?
0:19:00 > 0:19:05Well, I actually own the property next door and I'd been looking at the property
0:19:05 > 0:19:08for several years while we've been here with an eye to restoring it
0:19:08 > 0:19:10back to where it should be.
0:19:10 > 0:19:14I was also a bit concerned that a lot of developers
0:19:14 > 0:19:19were actually interested in the plot, to demolish what's here
0:19:19 > 0:19:22and put possibly two to three properties on it,
0:19:22 > 0:19:29and I was very much aware that that could have had some residual deficit effects on my property.
0:19:29 > 0:19:32So you bought this to protect your own house?
0:19:32 > 0:19:34Exactly. Very much so, yeah.
0:19:34 > 0:19:37In terms of developing it, you could make a lot of money, couldn't you?
0:19:37 > 0:19:41The reason developers would have bought it is that it's a huge plot
0:19:41 > 0:19:45and I'm sure you could have got planning permission. Is that not even vaguely tempting?
0:19:45 > 0:19:51No. Basically I'm going to restore what's here, possibly, in the future, extend it.
0:19:51 > 0:19:56I've got to have a word with my lawyer to actually make sure that nothing is developed on here
0:19:56 > 0:19:59in the future if I did decide to part with it.
0:19:59 > 0:20:01You're going to put a covenant into the property?
0:20:01 > 0:20:03So nobody can ever... Oh, wow.
0:20:03 > 0:20:08It may seem like madness to purchase somewhere just to stop others from buying it,
0:20:08 > 0:20:13but if a developer had got hold of it, it's possible that two to three houses could have gone up here.
0:20:13 > 0:20:16This would not only have destroyed the peace and quiet here,
0:20:16 > 0:20:19but might have had a negative effect on David's house
0:20:19 > 0:20:24so he has a sound financial motive for protecting his own assets.
0:20:24 > 0:20:29He's lived next door for over seven years but does he know the history of this house?
0:20:29 > 0:20:34From what I understand, it used to be a rural police station.
0:20:34 > 0:20:37These places were dotted all over Staffordshire.
0:20:37 > 0:20:41They were all built to a certain standard and a certain design.
0:20:41 > 0:20:44This one was working up until the very early '80s.
0:20:44 > 0:20:46They were all shut down and sold off.
0:20:46 > 0:20:49A police station, how did that work?
0:20:49 > 0:20:54Basically, the policeman and his family lived in the house, and they ran the station during the day
0:20:54 > 0:20:58and after hours there would be a phone connected and he could be woken up.
0:20:58 > 0:21:04Ah! Mystery solved. That is why the buildings were separate and not directly connected.
0:21:04 > 0:21:10I guess I have got a long way to go to get my Sherlock Holmes badge yet but David is clearly on the case.
0:21:13 > 0:21:15So tell me a bit more about you, then.
0:21:15 > 0:21:20Well, basically, I've worked in psychiatry since 1981.
0:21:20 > 0:21:25I've worked for the NHS for 20 years, I'm currently working for a charity
0:21:25 > 0:21:30part-time and I have a private practice doing counselling and psychotherapy.
0:21:30 > 0:21:34Blimey. So nothing to do with property developing at all, then?
0:21:34 > 0:21:39Not really. But I've always bought properties either from auction, so it was nothing new to me,
0:21:39 > 0:21:43and I've always restored houses, my whole family, their background is building.
0:21:43 > 0:21:47But your direct training and experience, does that come into this at all?
0:21:47 > 0:21:51No. To be honest with you, it's the exact opposite.
0:21:51 > 0:21:54That's why I love restoring properties.
0:21:54 > 0:21:55I also restore classic cars.
0:21:55 > 0:21:59- Oh, really?- Anything with my hands that's practical, it does help.
0:21:59 > 0:22:04When it comes to cars, David has some MGs, Bentleys and Jensens
0:22:04 > 0:22:07that he's restored over the years.
0:22:07 > 0:22:11It sounds like that he's got the skills and the connections to do a house renovation.
0:22:11 > 0:22:13But is that what he plans to do here?
0:22:13 > 0:22:16I've got three stepchildren.
0:22:16 > 0:22:20Basically, my family need additional accommodation.
0:22:20 > 0:22:24I'm hoping that my stepdaughter will take the house over.
0:22:24 > 0:22:27And the office that was a police office,
0:22:27 > 0:22:31I'm hoping to develop into secondary accommodation like a granny flat.
0:22:31 > 0:22:34So what are you actually going to do with the house?
0:22:34 > 0:22:35It in a bit of a state.
0:22:35 > 0:22:38It is. It's got to have a complete rewire,
0:22:38 > 0:22:43there's some fire damage upstairs which looks worse than it actually is.
0:22:43 > 0:22:44Have central heating put in it.
0:22:44 > 0:22:48The windows needs sorting out and it's got to be completely gutted
0:22:48 > 0:22:51and refurbished, really, replastered, everything.
0:22:51 > 0:22:56What about the garden? The garden is extensive, but a bit of a mess, isn't it?
0:22:56 > 0:23:00Got a friend who's got a JCB and he's going to change all the grading.
0:23:00 > 0:23:02The land is all the wrong levels.
0:23:02 > 0:23:06It's got to be all changed round and then, obviously, lawned.
0:23:06 > 0:23:09It will be an extensive lawn, easy to maintain with a tractor mower.
0:23:09 > 0:23:13Any idea how much it's going to cost to do the work?
0:23:13 > 0:23:18I actually do most of the work myself and my very close friend, who lives just over the road,
0:23:18 > 0:23:22is a master plasterer and he's promised to help me out with that,
0:23:22 > 0:23:25so, I'm looking for no more than about £10,000 - £12,000.
0:23:25 > 0:23:28- To do what? - To completely do the work.
0:23:28 > 0:23:33- Including what?- Including the rewire, central heating, the lot.
0:23:33 > 0:23:36Windows, kitchen?
0:23:36 > 0:23:39I've already got, believe it or not, I've got a kitchen organised.
0:23:39 > 0:23:43- Bathroom? Replastering?!- I've already got the bathroom organised.
0:23:43 > 0:23:46- 10,000 quid?!- £10-12,000.
0:23:46 > 0:23:50We'll definitely be watching David closer to see if he really can
0:23:50 > 0:23:55unlock the potential here on his very tight budget.
0:23:59 > 0:24:04So it just goes to show, buying property isn't always about making a profit.
0:24:04 > 0:24:06Dave's buying this place so he can guarantee
0:24:06 > 0:24:09that nobody's going to build right next door to his house.
0:24:09 > 0:24:14In terms of what he's going to do to this place, I believe this could be a beautiful house.
0:24:14 > 0:24:18But for £10-12,000, I don't think so.
0:24:18 > 0:24:21You can find out how he gets on later in the show.
0:24:22 > 0:24:25Coming up, the first thing that draws me to this house in Ramsgate
0:24:25 > 0:24:30isn't the sea but these lovely, huge, curved, bay windows. They're absolutely gorgeous!
0:24:32 > 0:24:38Back in Staffordshire, is it a case of "'ello 'ello what's going on here, then?"
0:24:38 > 0:24:42The wife said "do nothing for a week and then I'm going to crash on and finish it off."
0:24:44 > 0:24:48But first, we find out if Steve's gift of the gab bagged him a bargain.
0:24:48 > 0:24:52I just was very nice on the phone to the female.
0:24:55 > 0:24:57Earlier, we met Steve the builder.
0:24:57 > 0:25:01He originally went to the auction to bid for some friends but ended up
0:25:01 > 0:25:07buying this lower ground floor flat himself for £140,000.
0:25:07 > 0:25:11It's in Crystal Palace, south London, but it's not exactly regal.
0:25:11 > 0:25:13More like a palace dungeon.
0:25:13 > 0:25:19But Steve had great plans and with 27 years in the business, lots of experience.
0:25:19 > 0:25:25So five months on, we return to see if the flat with low initial appeal
0:25:25 > 0:25:27now had a high wow rating.
0:25:30 > 0:25:35Well, wow factor there is, and plenty of it.
0:25:35 > 0:25:40The shabby lounge is now a beautifully laid-out, open-plan kitchen diner.
0:25:42 > 0:25:47And connecting the unusable boxroom has added a new dimension to this room.
0:25:47 > 0:25:49I think the layout originally was just a bad one.
0:25:49 > 0:25:54It needed improving. I asked my architect what he thought
0:25:54 > 0:25:58and we did a few sketches and we had a chat and came up with this.
0:25:59 > 0:26:03That small boxroom was definitely little use as it was.
0:26:03 > 0:26:07Integrating it with the lounge has totally transformed this area.
0:26:07 > 0:26:09Down that shabby corridor...
0:26:16 > 0:26:21That tired back bedroom has seen its own total transformation.
0:26:25 > 0:26:30This is the second bedroom and this is where we've had the most dramatic change, I think.
0:26:30 > 0:26:34Originally, we had a kitchen here. We knocked the wall through
0:26:34 > 0:26:38and got these bi-fold doors and built-in wardrobe in here.
0:26:38 > 0:26:42Also a lovely en suite which I think is a dramatic change.
0:26:42 > 0:26:47Sealing off the kitchen door has allowed him to create a beautiful
0:26:47 > 0:26:52en suite wet-room that has taste and top quality in every corner.
0:26:55 > 0:26:59The same design style has been bought to the old bathroom.
0:27:09 > 0:27:14In contrast, the other bedroom has had a pleasant if unspectacular makeover.
0:27:14 > 0:27:20Steve has used an interior designer to create the right combination of style and selling points throughout.
0:27:20 > 0:27:27I need to get somebody in to deal with the colours and the quality of the finish.
0:27:27 > 0:27:31I'm more of a hands-on, in-the-ground builder.
0:27:31 > 0:27:37Steve may not be comfortable with paint palettes and soft furnishings
0:27:37 > 0:27:41but he certainly knows his stuff when it comes to the exterior design.
0:27:51 > 0:27:54So here we are in the garden in the middle of the tao symbol.
0:27:54 > 0:28:00It's a very important feature in this project, the garden, to integrate the inside and outside space.
0:28:00 > 0:28:05I did a lot of work here myself and I'm very pleased with it.
0:28:05 > 0:28:07When it came to that messy garden,
0:28:07 > 0:28:10Steve looked to the Far East for inspiration
0:28:10 > 0:28:13for its elegantly updated new look.
0:28:14 > 0:28:19Remember, Steve got the garden for nothing which he now reckons has added
0:28:19 > 0:28:22£30,000 to the property's value.
0:28:22 > 0:28:28There's no doubt that the transformation into a swanky urban pad has been a great success,
0:28:28 > 0:28:32was it necessary to do it to such a high standard?
0:28:32 > 0:28:36I think you've really got to up the ante in this market.
0:28:36 > 0:28:43Things are not too good and anything that is going to sell has got to be top quality.
0:28:43 > 0:28:49That quality is evident throughout. As renovations go, they were very few problems for this job.
0:28:49 > 0:28:53The damp was just a bit of condensation which was easily solved.
0:28:53 > 0:28:57No rewiring was necessary and only a new boiler was needed for the heating.
0:28:57 > 0:29:04Even so, for such an impressive conversion, I can't believe Steve stayed within his £10-15,000 budget.
0:29:07 > 0:29:11We went up to about £22,500.
0:29:11 > 0:29:14I reused some materials from other jobs that I've got.
0:29:14 > 0:29:20I don't know exactly what figure that would come to but there is a little bit more than that to add.
0:29:20 > 0:29:26For £22,000 plus, this renovation looks amazing.
0:29:26 > 0:29:33Added to Steve's purchase price of £140,000, that would take his costs here to about 163,000.
0:29:33 > 0:29:36So what are his plans?
0:29:39 > 0:29:42I think I'll put it on the market for a month and see what happens.
0:29:42 > 0:29:48If I don't get a good buyer, and when I say a good buyer, I mean somebody who can get a mortgage,
0:29:48 > 0:29:50I'll rent it.
0:29:52 > 0:29:56Bearing in mind that outlay of 163,000,
0:29:56 > 0:29:59we asked two local estate agents what they thought of the work.
0:30:01 > 0:30:04Walking into a flat that was very dark, very dank,
0:30:04 > 0:30:05it felt like a basement flat,
0:30:05 > 0:30:08you felt like nobody would want to live here,
0:30:08 > 0:30:10now you walk in and I'm ready to move in!
0:30:10 > 0:30:14First impression of the property, fantastic. Really good job.
0:30:14 > 0:30:16High quality. Great finish.
0:30:16 > 0:30:19Light, bright. Very, very good job.
0:30:19 > 0:30:23First arrival at the property, you walk into the garden and it's just fantastic.
0:30:23 > 0:30:25Beautifully landscaped.
0:30:25 > 0:30:30Into the double doors, into the kitchen, very good quality again.
0:30:30 > 0:30:33It's just, from start to finish, a superb job.
0:30:33 > 0:30:36What he's done here, he has a complete lifestyle package
0:30:36 > 0:30:40with the garden, he's got the ying and yang landscape there,
0:30:40 > 0:30:43the whole thing's got tranquillity built into it.
0:30:43 > 0:30:47Everything feels right. I love the feeling you get when you walk in the door.
0:30:47 > 0:30:50Creating that positive vibe is always important when selling,
0:30:50 > 0:30:53but did Steve go over the top with the finish?
0:30:53 > 0:30:57In a tough market, the quality of the flat will shine through.
0:30:57 > 0:31:00There is still demand for high-end properties.
0:31:00 > 0:31:04It's the lower-end, cheaper properties that are struggling.
0:31:04 > 0:31:07There's always going to be demand for something like this.
0:31:08 > 0:31:10What could the flat achieve if sold?
0:31:14 > 0:31:19If I were to put his property on the market today, I would put an asking price of £275,000.
0:31:19 > 0:31:24Having looked at the property, I would value it between the 250,000 and 240,000 mark.
0:31:24 > 0:31:28I don't think people are prepared to go over stamp duty by 5,000 - 10,000.
0:31:28 > 0:31:30250 would be top end in the current market.
0:31:30 > 0:31:34I think 260 and then sell it under stamp, under 250.
0:31:34 > 0:31:36That's what it's going to sell for.
0:31:36 > 0:31:43He was spot on, because two days later, Steve accepted an offer for the flat for £250,000.
0:31:43 > 0:31:47That should see him make a pre-tax profit of at least 70 grand,
0:31:47 > 0:31:50so an excellent and quick result there for him.
0:31:50 > 0:31:55After all his time in the business, the pleasure of the deal is still there.
0:31:58 > 0:32:05I'm 27 years looking at houses, I wouldn't say I get emotional, but I still enjoy every one of them.
0:32:13 > 0:32:16Oh, Ramsgate in Kent.
0:32:16 > 0:32:19Famous for its coastline and its Blue Flag beach.
0:32:19 > 0:32:23New transport links will also put this Kentish town firmly on the map.
0:32:23 > 0:32:28In less than a year, the high-speed train service to London will be operating.
0:32:28 > 0:32:32Commuting to the capital is currently 1 hour and 50 minutes.
0:32:32 > 0:32:36In 2009, the same journey will take just over one hour.
0:32:36 > 0:32:39This town, with its award-winning beach
0:32:39 > 0:32:43and cafe culture is sure to take off when the high-speed rail link opens.
0:32:43 > 0:32:47Why holiday in Rhodes when you can get to Ramsgate so easily?
0:32:47 > 0:32:49But what would the accommodation be like?
0:32:49 > 0:32:56A period property with three bedrooms, original features and a great position in the town.
0:32:56 > 0:32:59How much for all of this Georgian splendour?
0:32:59 > 0:33:03The guide was set at £95-105,000.
0:33:03 > 0:33:05Let's see what it's like on the inside.
0:33:05 > 0:33:12You don't just get one floor of this corner block, but three, which works out at around 35,000 a floor.
0:33:12 > 0:33:14That sounds all right to me.
0:33:15 > 0:33:21It's situated next to Pig Alley and certainly looks like somewhere that could bring home the bacon.
0:33:21 > 0:33:25Inside I've got to say the first thing I'm drawn to here
0:33:25 > 0:33:31are these lovely, huge, curved, bay windows, they're absolutely gorgeous.
0:33:31 > 0:33:33This is what I love about Georgian properties.
0:33:33 > 0:33:39Sadly, the Artex ceiling and the gas fire aren't really in keeping with this period property.
0:33:39 > 0:33:44I think it will be lovely to see the originals put back into a room like this.
0:33:44 > 0:33:48Imagine a reclaimed fireplace here instead of that old gas fire.
0:33:48 > 0:33:52And some cornicing. This room would be instantly improved.
0:33:52 > 0:33:58Just down the hall is the tired kitchen which needs a complete overhaul.
0:33:58 > 0:34:02The carcasses and units may be reusable.
0:34:02 > 0:34:07So with just new doors, you could save a significant amount of money.
0:34:07 > 0:34:10There's also the bonus of a basement,
0:34:10 > 0:34:14great for storage or even to convert into a games room or maybe a study.
0:34:14 > 0:34:19Upstairs on the middle floor, there's a bathroom, though sadly without a bath,
0:34:19 > 0:34:21and also a reasonable bedroom.
0:34:21 > 0:34:25Although what I've seen so far is not in great shape,
0:34:25 > 0:34:28it seems as though it could all be sorted out relatively easily.
0:34:28 > 0:34:31But I haven't seen the top floor yet.
0:34:31 > 0:34:35This room certainly has got a bit of an awkward shape
0:34:35 > 0:34:38but it does have character and it is kind of quirky.
0:34:38 > 0:34:41I know I keep going on about it, but look at this window.
0:34:41 > 0:34:44Look, I can't even touch the sides.
0:34:44 > 0:34:46That is magnificent.
0:34:46 > 0:34:50Something that is worrying me slightly, though, is this.
0:34:50 > 0:34:53Look at this water.
0:34:53 > 0:34:54Wet to the touch.
0:34:54 > 0:34:59If you don't do anything about that, it could add thousands to your budget.
0:34:59 > 0:35:05This may be something as simple as a bit of damage on the felting or it might need a new roof.
0:35:05 > 0:35:10Without checking, you don't know whether you're in for 60 quid or £6,000.
0:35:10 > 0:35:14It's these differences that can make or break an investment.
0:35:14 > 0:35:17Buying blind could mean you're in for a nasty shock.
0:35:17 > 0:35:20But this property has a lot going for it.
0:35:20 > 0:35:24The third bedroom isn't much more than a boxroom and the courtyard
0:35:24 > 0:35:26walled area at the back is not pretty.
0:35:26 > 0:35:32But with a bit of imagination I reckon you could make this a pleasant secluded sanctuary.
0:35:32 > 0:35:36Is this a diamond in the rough or just three floors of trouble?
0:35:36 > 0:35:39What does a local estate agent think?
0:35:42 > 0:35:44It could do with a nice refurb throughout,
0:35:44 > 0:35:47more cosmetic than anything else.
0:35:47 > 0:35:50I don't think it needs anything major doing, from what I've seen.
0:35:50 > 0:35:54A good paint through and it will be ready for someone to move in to.
0:35:54 > 0:35:57With this property, the main negative is the lack of parking.
0:35:57 > 0:36:01Most people don't want to park their car away from their property.
0:36:01 > 0:36:04You have double yellow lines outside so that isn't a choice.
0:36:04 > 0:36:08Will the lack of parking limit the value of this property?
0:36:11 > 0:36:18In the current market, once this property is refurbed throughout, it should sell for 135,000.
0:36:18 > 0:36:25The sort of rental per calendar month is around £550.
0:36:26 > 0:36:30That means it's not just the house that stacks up. The numbers do, too.
0:36:35 > 0:36:41In a market over-saturated with flats, it makes financial sense to keep this one as a house.
0:36:41 > 0:36:45The lack of parking may limit your market but its position in the town
0:36:45 > 0:36:50and its fantastic windows make it stand out from the rest, in my mind.
0:36:50 > 0:36:53Let's see who was attracted to this one as we go to auction.
0:36:57 > 0:37:00Ramsgate. 12 Broad Street.
0:37:00 > 0:37:04We start with £80,000. Lot 277.
0:37:04 > 0:37:06£80,000 anywhere?
0:37:06 > 0:37:1080? On the aisle.
0:37:10 > 0:37:13Checked shirt, £80,000. 81 anywhere?
0:37:13 > 0:37:1581 at the back. 82?
0:37:15 > 0:37:20Sir, 82. Thank you. 83. 84?
0:37:20 > 0:37:2284. 85?
0:37:22 > 0:37:2585. 86? 87?
0:37:25 > 0:37:3088? 89? 90?
0:37:30 > 0:37:3291?
0:37:34 > 0:37:38No, 90 then. 90, I'm bid, against you at the back. 91 anywhere?
0:37:41 > 0:37:43First time at 90.
0:37:43 > 0:37:45Second time at 90. Third and last time.
0:37:45 > 0:37:49£90,000. All done. Yours.
0:37:49 > 0:37:52On the aisle, checked shirt. £90,000.
0:37:52 > 0:37:57So, for below the guide price and at that reasonable sum of 90,000,
0:37:57 > 0:38:02the new owners are retired couple, David and Andrea.
0:38:02 > 0:38:06David was initially a lawyer then moved into car restoration.
0:38:06 > 0:38:09Andrea, his wife of 40 years, was a teacher.
0:38:09 > 0:38:14They now live in Bedfordshire nearly 140 miles away.
0:38:14 > 0:38:15What brings you to Ramsgate?
0:38:15 > 0:38:19We had a water mill in France
0:38:19 > 0:38:22which David did up.
0:38:22 > 0:38:27When it was finished, we didn't know what we were going to do with ourselves
0:38:27 > 0:38:31so we sold it and drove along the south coast and we looked at various properties,
0:38:31 > 0:38:35and we saw the one we bought in Paragon.
0:38:35 > 0:38:40So he's finished that and wanted another job.
0:38:40 > 0:38:42So, you've a holiday home down here.
0:38:42 > 0:38:45- Yes, at the moment. - Overlooking the Royal Harbour.
0:38:45 > 0:38:49So, your reason for wanting to buy this was because you're bored?
0:38:49 > 0:38:50Come on!
0:38:53 > 0:38:56No, not entirely.
0:38:56 > 0:39:01I thought it might make a reasonable investment property
0:39:01 > 0:39:05and we have no pension fund or anything like that.
0:39:05 > 0:39:10Over the years, David has done up and restored more than six properties,
0:39:10 > 0:39:13ranging from old thatched cottages to that water mill.
0:39:13 > 0:39:19He seems unable to stop tinkering with houses and sees it more as a hobby than another career.
0:39:27 > 0:39:32What is the grand plan? How is it going to work, having taken this on board?
0:39:32 > 0:39:35That's one of the worrying things.
0:39:35 > 0:39:37How long it's going to take.
0:39:37 > 0:39:40It's only decorating, really.
0:39:40 > 0:39:45David comes down with a friend, friendly painter/builder chappie
0:39:45 > 0:39:49but they only come for two days once a month.
0:39:49 > 0:39:52What about the problems, I know you have a flat roof,
0:39:52 > 0:39:55there is a bit of damp coming through and blocked guttering.
0:39:55 > 0:39:58I think the gutters are OK.
0:39:58 > 0:40:01Terry, who is much more agile than me,
0:40:01 > 0:40:05shinned up onto the roof and has done some repairs to the flashing around the chimney.
0:40:05 > 0:40:07Hopefully, he's fixed the problem.
0:40:07 > 0:40:11There has been a leak down the chimney breast in the top bedroom.
0:40:11 > 0:40:13What is your budget to do the work here?
0:40:13 > 0:40:16I would think...
0:40:16 > 0:40:21I always thought on restoration projects, think of a figure and double it and double the time.
0:40:21 > 0:40:24On this, it's more straightforward.
0:40:24 > 0:40:27I would think £1,500, something like that.
0:40:27 > 0:40:28Really?
0:40:28 > 0:40:33So you have paint, woodwork to be done, carpet cleaning.
0:40:33 > 0:40:37Yes, you've already spent nearly 1,000 between John and the cooker.
0:40:37 > 0:40:40You see! You see!
0:40:40 > 0:40:44400 and 700.
0:40:44 > 0:40:47- Anyhow, we might have to double it. - It might creep up.
0:40:47 > 0:40:50Yes. Bit optimistic I think, there.
0:40:50 > 0:40:54- That was my original feeling, double it.- Double it, then double it.
0:40:54 > 0:40:56That would probably be about right.
0:40:57 > 0:41:03There may have to be a slight review of the budget but this doesn't seem to be a project driven by money.
0:41:06 > 0:41:08Andrea, is he a bit of a workaholic?
0:41:08 > 0:41:10I wouldn't say that!
0:41:10 > 0:41:14I would say a pleasure-holic.
0:41:14 > 0:41:20He gets a great deal of pleasure out of restoring old houses and old cars.
0:41:20 > 0:41:23And enjoys racing them as well.
0:41:23 > 0:41:30He's very much... or we are, very much into the pleasure business rather than the workaholic.
0:41:30 > 0:41:32Sheer hard work business.
0:41:32 > 0:41:34Tell me more about the cars.
0:41:34 > 0:41:40Cars are mainly Jaguars from the '50s and early '60s.
0:41:40 > 0:41:43They're my real interest.
0:41:43 > 0:41:48We race those all over the UK and Europe
0:41:48 > 0:41:52and even South Africa and Australia.
0:41:54 > 0:41:55We've had a lot of fun over the years.
0:41:55 > 0:42:03And we have a son who's very interested as well, so father and son thoroughly enjoy it.
0:42:03 > 0:42:05- I'm called...- Team manager.
0:42:05 > 0:42:07Team manager now.
0:42:07 > 0:42:11- Sounds like you have a lot of fun together.- Yes, we do.
0:42:11 > 0:42:13It's quite an adventure, your life, isn't it?
0:42:13 > 0:42:17Yes, one big adventure.
0:42:17 > 0:42:22So, this Broad Street House is another chapter in their continuing adventure.
0:42:22 > 0:42:25If you ever want proof that retirement is fun and fulfilling,
0:42:25 > 0:42:29you couldn't get a better advert than David and Andrea.
0:42:29 > 0:42:37# Life's waiting to begin Life's waiting to begin...#
0:42:38 > 0:42:41There's no sense of urgency for David and Andrea.
0:42:41 > 0:42:45They are self-confessed pleasure-holics and this is their hobby.
0:42:45 > 0:42:51However, David's budget is extremely modest for the amount of work that needs doing here.
0:42:51 > 0:42:55If the roof does need attention, it could cost thousands.
0:42:55 > 0:42:58Find out how the couple get or later in the show.
0:43:01 > 0:43:06So, have the tides turned for our property investors?
0:43:06 > 0:43:08Have their experiences been plain sailing?
0:43:08 > 0:43:13- Have they sunk without trace or swum to the shore with a profit? - Let's find out.
0:43:15 > 0:43:20Back in Blackbrook in Staffordshire, a former rural police station
0:43:20 > 0:43:23known appropriately as The Copse, went up for auction.
0:43:23 > 0:43:27This was a property in terrible condition,
0:43:27 > 0:43:30there was fire damage upstairs, and it was damp and dingy throughout.
0:43:30 > 0:43:34As if that wasn't enough, the layout was odd.
0:43:34 > 0:43:41There was an extension which had been the old police station office but it wasn't attached internally.
0:43:41 > 0:43:46Also, it sat on a big plot so it seemed this was a ripe development opportunity.
0:43:46 > 0:43:49The days of the building itself were surely numbered.
0:43:49 > 0:43:55But when David bought it for 216,000 it seemed as though rescue could be close at hand.
0:43:57 > 0:44:01# Rescue me And take me in your arms...#
0:44:01 > 0:44:07I actually own the property next door and I've been looking at the property for several years.
0:44:07 > 0:44:12I was concerned that a lot of developers were interested in the plot.
0:44:12 > 0:44:15So you bought this to protect your own house.
0:44:15 > 0:44:18Exactly. Very much so.
0:44:18 > 0:44:25Six months on, has David been able to arrest the ravages of time in this former police station?
0:44:31 > 0:44:33Is the Copse now back to being a home?
0:44:36 > 0:44:43Well, there's a marked improvement with new windows, new central heating and redecoration.
0:44:46 > 0:44:50The back reception room now has patio doors out to the garden.
0:44:51 > 0:44:53And the kitchen?
0:44:53 > 0:44:55Well, it's really coming on.
0:44:55 > 0:44:59Psychotherapist David has really worked hard here and proved his practical skills.
0:44:59 > 0:45:05But he had an extremely tight £12,000 budget.
0:45:05 > 0:45:11I've actually spent £6,000 so far.
0:45:11 > 0:45:16My friend, Mick, actually plastered the house and he did it as a favour.
0:45:22 > 0:45:29£6,000 is amazing, especially when you see what has been achieved on the fire-damaged first floor.
0:45:29 > 0:45:34You can appreciate how generous his plasterer friend, Mick, was
0:45:34 > 0:45:37when you consider how much plasterwork was needed up here.
0:45:37 > 0:45:40And although David has got some fantastic internet bargains,
0:45:40 > 0:45:44to reach this stage for a spend of just £6,000 is very impressive.
0:45:46 > 0:45:50This is where the greatest changes have occurred.
0:45:50 > 0:45:53All this area around here was devastated in the fire.
0:45:53 > 0:45:56Basically, it actually looked a lot worse than it actually was.
0:45:56 > 0:46:02We found when we actually investigated further, once we had cut away all the debris,
0:46:02 > 0:46:10that the timbers were in very good condition and they were very, very substantial anyway.
0:46:10 > 0:46:14So with the ceiling joists replaced and some of the timbers replaced also,
0:46:14 > 0:46:19we've managed to, as you can see, create a dramatic change in this room.
0:46:19 > 0:46:21I certainly think this part of the house is a triumph,
0:46:21 > 0:46:25particularly when you bear in mind that most of the work was done by David
0:46:25 > 0:46:27with help from his friend, Mick.
0:46:27 > 0:46:30Not only did David have to contend with the problems he knew about,
0:46:30 > 0:46:33but he found a serious rat infestation in the loft.
0:46:33 > 0:46:38He then had to put in additional support to strengthen some walls.
0:46:38 > 0:46:41Meanwhile, he also took on a full-time job, which has meant that,
0:46:41 > 0:46:46along with the renovation, he has been working seven days a week for the last six months.
0:46:46 > 0:46:49And if that wasn't enough, he had to work in an unheated house
0:46:49 > 0:46:53in one of the most bitterly cold winters in recent memory.
0:46:53 > 0:46:55# In the wintertime...#
0:46:55 > 0:47:02It was that cold that one day in particular I was wearing my hardhat and I just couldn't wear it,
0:47:02 > 0:47:08the plastic was actually so cold that it was making me miserable.
0:47:08 > 0:47:11So, foolishly, I took it off and I put my bobble hat back on
0:47:11 > 0:47:14because I couldn't put my bobble hat on underneath the hardhat.
0:47:14 > 0:47:21And I was chiselling away and a full-sized brick hit me on the head with the bobble hat on.
0:47:21 > 0:47:25My son saw it happen and I kept on chiselling.
0:47:25 > 0:47:29And he said, "Dad, there's blood coming down the side of your face!"
0:47:29 > 0:47:32And it was that cold, I couldn't feel it.
0:47:37 > 0:47:42At the end of the day, it's better to have a cold head than a cracked one,
0:47:42 > 0:47:45but David hasn't finished with the hardhat yet.
0:47:45 > 0:47:47He reckons he's still got three months ahead of him.
0:47:47 > 0:47:50He has to finish off the not insignificant task
0:47:50 > 0:47:55of landscaping the garden and then there's the old police office annex.
0:47:57 > 0:47:59As you can see, this is still a bit of a mess.
0:47:59 > 0:48:03Very much at an embryonic stage.
0:48:03 > 0:48:09Really, we are trying to work out how we can get the layout right in this part of the house
0:48:09 > 0:48:11to make this single accommodation.
0:48:11 > 0:48:15So we are struggling a little bit with this, but we're hoping,
0:48:15 > 0:48:18with a bit of thought and planning, to get it right.
0:48:21 > 0:48:24It is an area that can be used for so many purposes.
0:48:24 > 0:48:30It could either be integrated into the house or used as a separate granny annex.
0:48:30 > 0:48:33Or, David has considered using it as his office.
0:48:33 > 0:48:37Potentially, it's the bit that could add some value here if done well.
0:48:37 > 0:48:40What do two local estate agents think?
0:48:40 > 0:48:43Is David heading in the right direction?
0:48:49 > 0:48:51It's a huge change.
0:48:51 > 0:48:54The property before was very down-at-heel,
0:48:54 > 0:48:58needed developing with the fire-damaged part of the property.
0:48:58 > 0:49:00It was completely unmodernised.
0:49:01 > 0:49:05Now, new plaster, a new kitchen, bathroom,
0:49:05 > 0:49:09it has certainly come on a lot.
0:49:09 > 0:49:12There has obviously been a lot of work done on the property so far.
0:49:12 > 0:49:15But I would like to have seen a bit more done
0:49:15 > 0:49:19with regard to looking for a master bedroom with an en-suite.
0:49:19 > 0:49:25Downstairs toilet facilities and somehow incorporating the granny flat into the main property.
0:49:25 > 0:49:29Some of the standard of the things that have been done,
0:49:29 > 0:49:35maybe not as good as it should be in a property of this size.
0:49:35 > 0:49:39The way I would look at it is to use that granny flat as actually an executive office
0:49:39 > 0:49:43and then to extend out above the granny flat to make that fourth bedroom.
0:49:43 > 0:49:46Bring in the en-suite bedroom.
0:49:46 > 0:49:49That will then give you far more potential from this property.
0:49:49 > 0:49:53David may not be fully maximising the potential here.
0:49:53 > 0:49:58But he didn't see this as a primarily money-making venture.
0:49:58 > 0:50:03Even so, he'd hoped to recoup its costs of around £230,000.
0:50:03 > 0:50:06If everything was finished and the property was just sold,
0:50:06 > 0:50:10you'd be looking to put this property on the market around about £325,000.
0:50:10 > 0:50:14At the moment we would look at somewhere around the 275, 280 mark.
0:50:14 > 0:50:20That's pretty encouraging. It does seem that David bought well. But what does he think?
0:50:20 > 0:50:23No disrespect to the gentleman who came in lower.
0:50:23 > 0:50:28Perhaps that's a realistic value on what people would want to buy it quickly.
0:50:28 > 0:50:32I am not in a hurry to sell so there's no issue there at all, really.
0:50:32 > 0:50:36In fact, David is hoping one of his stepchildren will move in.
0:50:36 > 0:50:42Or another family member. He will consider his options when finally it's all finished. And then what?
0:50:42 > 0:50:44For me, a rest.
0:50:44 > 0:50:48I'm going to have a little bit of a rest for a week or so.
0:50:48 > 0:50:52My wife said, "Do your thing for a week and then I'm going finish it off."
0:50:52 > 0:50:56So, David will have a brief break from all the tasks here.
0:50:56 > 0:51:02# I want, I want, I want to break free...#
0:51:02 > 0:51:06And he hopes to do a bit of restoration work on his old car collection.
0:51:06 > 0:51:11But it's going to be a while before he completely escapes from the old police station.
0:51:15 > 0:51:19In the seaside town of Ramsgate in Kent, things are set to change.
0:51:19 > 0:51:25A new high-speed rail link will mean that London will be just over an hour away.
0:51:25 > 0:51:28This will make it not just a holiday destination
0:51:28 > 0:51:32but a viable commuting base and also an attractive proposition for investors.
0:51:32 > 0:51:35But when retired couple, David and Andrea,
0:51:35 > 0:51:39snapped up a three-storey house for £90,000 at auction,
0:51:39 > 0:51:42it wasn't just pension funds they were thinking about.
0:51:42 > 0:51:45So, your reason for wanting to buy this was because you're bored?
0:51:45 > 0:51:52- Come on!- No, that's not really... - Not entirely. Not entirely.
0:51:52 > 0:52:00David has done up six properties over the years, including restoring a watermill and thatched cottage.
0:52:00 > 0:52:04So, five months on, has he been busy on this three-storey house?
0:52:06 > 0:52:09To some degree, yes. But it's not the most radical change.
0:52:09 > 0:52:14It's really just had a lick of paint and a bit of a makeover.
0:52:23 > 0:52:28The bathroom still doesn't have a bath and they've even retained some of the old kitchen.
0:52:28 > 0:52:34David managed to match up some of the tiles because all these were missing.
0:52:34 > 0:52:41The other thing we had to do was buy a new cooker here, the hob and the oven.
0:52:41 > 0:52:47And fittings for the dishwasher and washing machine.
0:52:47 > 0:52:53And we didn't like the colour. It was a vivid bright yellow.
0:52:53 > 0:52:56So we painted it cream, which seems to have lightened everything up.
0:52:56 > 0:53:04And I made the flowery curtains, which seems to have brought the garden from the outside, inside.
0:53:04 > 0:53:10David worked on the house a couple of days a month along with a friend, Terry, who's an odd-job man.
0:53:10 > 0:53:14Terry has hopefully sorted out the damp coming from the roof.
0:53:14 > 0:53:16But how did David and Andrea operate together?
0:53:20 > 0:53:27Well, she's very good at organising my calendar and time and everything else.
0:53:27 > 0:53:29I'm not very good at that sort of thing.
0:53:29 > 0:53:35Well, he organises and I just help out, really.
0:53:35 > 0:53:40As far as I'm concerned, it's a source of income.
0:53:40 > 0:53:43For me, it's also a pleasure and it always has been.
0:53:43 > 0:53:49And I've never really considered it as work. If I did, I don't suppose I would bother to do it.
0:53:49 > 0:53:53But pleasure or not, it still needs to give them some financial return.
0:53:53 > 0:53:56So, will it?
0:53:56 > 0:54:00David proposed that the budget would be £1,500,
0:54:00 > 0:54:03and I must admit, I thought it would cost a lot more than that.
0:54:03 > 0:54:08We've actually come in at £1,100. So we are pleased with that.
0:54:11 > 0:54:14Their meagre spend means that after buying the house for £90,000,
0:54:14 > 0:54:18the total outlay is just over £91,000.
0:54:18 > 0:54:22But is this a case where perhaps they have been too careful with their pennies?
0:54:22 > 0:54:25What do two local estate agents think?
0:54:30 > 0:54:32Well, I've had a bit of a shock.
0:54:32 > 0:54:34I've come in and not an awful lot done.
0:54:34 > 0:54:37Which is quite surprising in the sort of time that we have had.
0:54:37 > 0:54:40It looks like they've spent the bare minimum on the property,
0:54:40 > 0:54:42obviously to rent it out, I would think.
0:54:42 > 0:54:46It's my first time here today and I think it's a nice period property.
0:54:46 > 0:54:49There is a demand, especially with London buyers.
0:54:49 > 0:54:53It has been done in quite neutral colours. The finish isn't brilliant.
0:54:53 > 0:54:57I think they haven't done enough to make it saleable or really lettable,
0:54:57 > 0:54:59with things like the carpets that need replacing.
0:54:59 > 0:55:02They've given it a quick lick of paint, but it is a bit shabby.
0:55:02 > 0:55:07So I would say they need to take a little bit more care and attention on this property
0:55:07 > 0:55:09to bring it up to the right standard.
0:55:09 > 0:55:13I personally would have put a brand new, ultra-modern kitchen in.
0:55:13 > 0:55:18I probably would have put a bath in because that's really what people require in a bathroom.
0:55:18 > 0:55:23And spend a few more thousand to give it the sort of "wow" factor that would sell quickly.
0:55:23 > 0:55:29In fairness to David and Andrea, they have prepared this place for the rental market.
0:55:29 > 0:55:33But even so, the estate agents aren't exactly bowled over.
0:55:33 > 0:55:40Will that be reflected in the valuations of this property the couple have invested £91,000 in?
0:55:40 > 0:55:42In this property's current condition,
0:55:42 > 0:55:46I think really you're going to be looking at no more than £125,000.
0:55:46 > 0:55:51I would have put it on the market in its current state for about £135,000.
0:55:51 > 0:55:55Well, I'd be quite happy with that. Bearing in mind what we paid for it.
0:55:55 > 0:55:57Yeah.
0:55:57 > 0:56:00Yes, I would think so. That's...
0:56:00 > 0:56:01Don't say over the moon!
0:56:04 > 0:56:08No, that was the original asking price and we were lucky to get it for a lot less.
0:56:08 > 0:56:12Despite the fact they'd hardly gone overboard here,
0:56:12 > 0:56:16they could still possibly see a £40,000 pre-tax profit.
0:56:16 > 0:56:20It just goes to prove the old adage, the value is in the price you buy it for.
0:56:20 > 0:56:23Does this one also work in terms of rent?
0:56:23 > 0:56:29In current condition, I think this property would be able to rent for round about £500 per calendar month.
0:56:29 > 0:56:33I would estimate between £550 and £600 per calendar month.
0:56:33 > 0:56:36I think it's nearer £500 than £600.
0:56:36 > 0:56:39Yeah, likewise.
0:56:39 > 0:56:41But we're not looking for high rents.
0:56:41 > 0:56:45As long as we have good tenants, that's what we're looking for.
0:56:45 > 0:56:49So, as a pension nest egg, this seems to have worked out well
0:56:49 > 0:56:53and should produce a reasonable revenue for many years to come.
0:56:56 > 0:56:59So, see you next time for more auction-room action.
0:56:59 > 0:57:01- See you then.- Goodbye.- Goodbye.
0:57:05 > 0:57:07For more information about Homes Under The Hammer,
0:57:07 > 0:57:12including how the programme was made, visit the website at bbc.co.uk
0:57:16 > 0:57:19Subtitles by Red Bee Media Ltd
0:57:19 > 0:57:23E-mail subtitling@bbc.co.uk