0:00:00 > 0:00:04Hello. Now, even in these troubled financial times
0:00:04 > 0:00:06we all still need a roof over our head
0:00:06 > 0:00:09or somewhere to invest our money.
0:00:09 > 0:00:14And an excellent place to pick up a property bargain could well be at an auction.
0:00:14 > 0:00:19Well, we've been trawling the country to find people who've have done just that.
0:00:44 > 0:00:49Now, buying and doing up properties can be great fun, but also fraught with problems.
0:00:49 > 0:00:55Now, some take to it like a duck to water and others, well, like cats to water.
0:00:55 > 0:00:57So, which will it be for today's buyers?
0:00:59 > 0:01:04In Derby there's a two bed terrace up for grabs if you can see it.
0:01:04 > 0:01:06Look at the size of this tree!
0:01:08 > 0:01:12This land in Kent comes with planning permission...
0:01:12 > 0:01:17to build not one, not two, but three houses.
0:01:18 > 0:01:24And there's a Grade 2 listed cottage in Wiltshire, but in what state?
0:01:25 > 0:01:29I'm categorising it as "original" condition straight away.
0:01:30 > 0:01:33All of these properties went to auction.
0:01:33 > 0:01:38We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:41 > 0:01:48I'm in Alveston, a suburb of Derby which lies just two miles south of the city centre.
0:01:49 > 0:01:55There's no planes in the sky at the moment, but there could be as we're close to East Midlands Airport.
0:01:55 > 0:02:00Why is that significant? A lot of the people who work at the airport live and rent in this area,
0:02:00 > 0:02:03so the property I'm here to see could have great potential.
0:02:03 > 0:02:06I think it has. This is it, two bedroomed mid-terrace.
0:02:06 > 0:02:10The guide price was 60,000 quid. Let's take a look inside.
0:02:10 > 0:02:14Actually, before we go inside, I don't need to go anywhere else
0:02:14 > 0:02:19other than the front garden to see a major problem. Look at the size of this tree!
0:02:19 > 0:02:23Major problem. Three basic reasons. One, it's going to affect the foundations,
0:02:23 > 0:02:25two, it'll affect the drains,
0:02:25 > 0:02:32and three, it's blocking out all the light from the house. The first thing I'd do is chop it down!
0:02:32 > 0:02:35Now, from the outside the house is quite wide, which bodes well,
0:02:35 > 0:02:39however when you come inside, you realise it's not that deep
0:02:39 > 0:02:42so in the living room here this is what you've got.
0:02:42 > 0:02:44Good news, though, it doesn't smell damp.
0:02:44 > 0:02:47You've got double glazing, which is good.
0:02:47 > 0:02:49Fireplace, well, it's a bit dated, could do with replacing.
0:02:49 > 0:02:55In fact, the whole place just needs a bit of a freshen up, but, overall, not a bad start.
0:02:55 > 0:02:59So, the kitchen here is the only other room on the ground floor
0:02:59 > 0:03:03so, as you can see, yes, it is very wide, but not very deep.
0:03:03 > 0:03:09The kitchen itself, well, not exactly a huge amount of space and clearly in need of a bit of design.
0:03:09 > 0:03:14One thing I do like is this. You don't see this enough these days - a pantry.
0:03:14 > 0:03:19It's under the stairs, makes great use of space for you to put your beans and other stuff. Great.
0:03:19 > 0:03:25Now, when it comes to the outside, well, a reasonable-sized garden and a downstairs loo,
0:03:25 > 0:03:29one you can easily access from the garden. That is a plus point.
0:03:29 > 0:03:33So, all in all, yeah, downstairs it's all right.
0:03:33 > 0:03:38You could knock all this through and create a much bigger kitchen,
0:03:38 > 0:03:42but any structural work would probably add a zero to the budget
0:03:42 > 0:03:47and if you plan to rent this out you might not see your money back for a while.
0:03:48 > 0:03:51So, upstairs, two bedrooms.
0:03:51 > 0:03:56A good sized double on that side, then across the landing to a smaller single there.
0:03:56 > 0:03:58But, you know, all in all, it's not too bad.
0:03:58 > 0:04:01The only downside in some ways is this, the bathroom.
0:04:01 > 0:04:05It's tiny. It's got everything you need, and at least it is upstairs,
0:04:05 > 0:04:12but, really, there isn't enough room even for a door, but, all in all, it's not a bad little house.
0:04:13 > 0:04:20Recent sale prices of similar houses on Baker Street show that many are going for just below £90,000.
0:04:20 > 0:04:25So, with that guide price of 60,000, there is profit to be made here,
0:04:25 > 0:04:27but just how far can you go?
0:04:28 > 0:04:33I asked the auctioneer who sold this one for his thoughts.
0:04:33 > 0:04:37Whether you'd alter it depends on the long term future for it.
0:04:37 > 0:04:39If you're going to rent it out,
0:04:39 > 0:04:42there's no point rearranging the accommodation.
0:04:42 > 0:04:44There are obviously limitations with the kitchen,
0:04:44 > 0:04:46limitations with the bathroom.
0:04:46 > 0:04:49They can be altered, but you're adding significant cost to do that
0:04:49 > 0:04:51and, from a rented point of view, it's fine.
0:04:51 > 0:04:58And if whoever bought this property intended to rent it out what kind of market would they be entering?
0:04:58 > 0:05:03There's quite a rental demand here. Most of Baker Street, I would say,
0:05:03 > 0:05:07is a mix of first time buyer material and rented accommodation.
0:05:07 > 0:05:15This would make quite a good rented material and I think you'd rent it out probably about £375 a month.
0:05:15 > 0:05:20If someone renovated this as it stands, what could it sell for?
0:05:21 > 0:05:25I would say this would go on the market at about £85,000.
0:05:25 > 0:05:28You'd probably expect to get upwards of 80,000.
0:05:29 > 0:05:36So, a decent enough little house. It doesn't need a lot of work doing to it to get it into tiptop shape.
0:05:36 > 0:05:40A good rental potential. The only problem is the tree.
0:05:40 > 0:05:42Let's find out who went for it at the auction.
0:05:46 > 0:05:50Lot number seven is 194 Baker Street in Alveston.
0:05:53 > 0:05:56Who's got 50 to start me? £50,000 bid, somewhere?
0:05:56 > 0:06:0050 is bid. Thank you very much. £50,000. That's £50,000.
0:06:00 > 0:06:0451 is bid here. 52 on the back corner.
0:06:04 > 0:06:0952. 53. 54. 54,000. 55, sir?
0:06:09 > 0:06:1255. 56?
0:06:12 > 0:06:16I'll take a half if it'll help you. 55 is bid on the front row.
0:06:16 > 0:06:19It's in the market, no mistakes. 55 and a half?
0:06:19 > 0:06:21At £55,000 then, all done with it.
0:06:21 > 0:06:24194 Baker Street.
0:06:24 > 0:06:28500. 56 is bid. 56,500.
0:06:28 > 0:06:30Seven?
0:06:30 > 0:06:3556 and a half. All the bids are yours. At £56,500.
0:06:35 > 0:06:37Once, twice, third and last opportunity.
0:06:37 > 0:06:40We're selling at 56 and a half.
0:06:40 > 0:06:43Sold on the back wall, 56 and a half. Thank you.
0:06:43 > 0:06:50Electrician Rich made the winning bid for almost £5,000 below the guide price,
0:06:50 > 0:06:53but there seemed to be some discussion about it on the day,
0:06:53 > 0:06:58so I met up with him back at the house to find out why.
0:06:58 > 0:07:00- Rich, nice to meet you. - All right, Martin?- Congratulations.
0:07:00 > 0:07:03So, why this house?
0:07:03 > 0:07:11There are several reasons, but, to be honest, the actual one reason is it was an accident.
0:07:11 > 0:07:16- An accident?- Yes. My wife was talking to me all the way through the auctions.
0:07:16 > 0:07:21This one came on, she said, "This is the one we seen first, isn't it?" I said, "Yeah, this is the one."
0:07:21 > 0:07:25The business starts. 54, 55, 55 and a half.
0:07:25 > 0:07:31She elbows me. "What are you doing?" I said, "Well, you wanted me to bid, didn't you?"
0:07:31 > 0:07:34"No, I said, 'That's the one with the small bathroom, isn't it?'"
0:07:34 > 0:07:37I said, "Ooh...!" "Sold, man at the back."
0:07:37 > 0:07:40- No!- I said, "I hope you wanted it because we've just bought it!"
0:07:44 > 0:07:46Sold on the back wall.
0:07:47 > 0:07:52Oops! You could forgive someone who's never been to an auction before for an error like that,
0:07:52 > 0:07:56but Rich and Sue have gone to more than a couple.
0:07:58 > 0:08:03- Eight, ten auctions we've been to. - You went to eight or ten auctions, you did all your research...?- Yeah.
0:08:03 > 0:08:06You knew about auctions and you bought it by mistake.
0:08:06 > 0:08:07Yes.
0:08:07 > 0:08:13But that's just how it goes. It might have been a mistake, but it was obviously meant to be.
0:08:13 > 0:08:19- So, tell me a bit more about you. - I left school when I was 16, went straight to the Electricity Board,
0:08:19 > 0:08:26did my apprenticeship with them, worked for them for ten years, decided to work for myself.
0:08:26 > 0:08:31As you do working for yourself, you end up dabbling in all the different trades,
0:08:31 > 0:08:36working alongside different ones until you can do those trades, too.
0:08:36 > 0:08:41There are very, very few things house-wise, domestic, that I can't turn my hands to,
0:08:41 > 0:08:46so it makes money sense that we buy a house and I do it myself.
0:08:50 > 0:08:55Rich and Sue have been looking to buy a property to renovate for some time.
0:08:55 > 0:08:59They were waiting until their two daughters were old enough to look after themselves
0:08:59 > 0:09:05before making that financial commitment and they hope this will be a wise investment.
0:09:05 > 0:09:10If somebody offered us money tomorrow, and it made a profit, then, yes, I would sell it,
0:09:10 > 0:09:15but as it stands at the moment, we intend to fix the house up and rent it,
0:09:15 > 0:09:18more than likely, to my daughter and her boyfriend,
0:09:18 > 0:09:25as long as they realise we're not in this for the fun of it. It's got to pay the mortgage.
0:09:25 > 0:09:27- What does your daughter think about this?- Buzzing like a little girl.
0:09:27 > 0:09:32And I tell you something, it'll be great to get a bathroom back!
0:09:34 > 0:09:40So, Rich's first development project has a tenant lined up before work's even started.
0:09:40 > 0:09:47He hopes it'll take about five months to get the property ready, with him doing almost all the work.
0:09:47 > 0:09:52I would say around 8,000. 10,000 if something goes wrong,
0:09:52 > 0:09:55but 8,000 I'm expecting to be able to buy all the materials,
0:09:55 > 0:10:00new kitchen, new bathroom, rewire it, central heating,
0:10:00 > 0:10:04strip everything down and redecorate the whole lot.
0:10:04 > 0:10:08Brilliant. What about the internal layout? Are you going to do anything to knock through walls?
0:10:08 > 0:10:13We've obviously got interesting thing with pantries, and downstairs loos, all that kind of stuff.
0:10:13 > 0:10:17The only thing that's of question is the upstairs bathroom. It is quite small.
0:10:17 > 0:10:24If I was to go in the bath I think I'd probably hit every wall with my arm.
0:10:24 > 0:10:31I think all we're going to end up doing is probably a large P-shaped bath with a built-in shower into it.
0:10:31 > 0:10:35So, no, structurally it's going to pretty much stay the same.
0:10:35 > 0:10:39The only thing I really have got in question is to look on to the deeds
0:10:39 > 0:10:43and make sure that that isn't a shared access to the side
0:10:43 > 0:10:48because if it isn't, we may look into pushing this kitchen right to the side wall
0:10:48 > 0:10:52because at the moment it's just wasted space.
0:10:52 > 0:10:56It's an interesting idea and not one I'd have thought of,
0:10:56 > 0:11:00which just shows that Rich certainly knows what he's doing.
0:11:00 > 0:11:06Would you contemplate doing this full time, giving up the day job and becoming a full time developer?
0:11:06 > 0:11:09If it works out that way, then great,
0:11:09 > 0:11:16but my honest intentions are to make sure I've got some sort of retireable future
0:11:16 > 0:11:20because I had an accident on my back some years ago
0:11:20 > 0:11:24and I can't say by the time I'm 50 if I'll be able to walk properly.
0:11:24 > 0:11:29So, with these 10 years now, if I can cram as much work in years as I can,
0:11:29 > 0:11:33I can secure a future for my wife and a pension for myself.
0:11:33 > 0:11:38- Well, listen, I hope this all turns out brilliantly for you. Good luck with it.- Thanks very much, Martin.
0:11:38 > 0:11:40Congratulations.
0:11:42 > 0:11:45Well, it's funny how things turn out sometimes, isn't it?
0:11:45 > 0:11:49This may well have been an accidental purchase for Rich,
0:11:49 > 0:11:53but I think it gave them the push they needed to finally get into property development.
0:11:53 > 0:11:56Let's face it, he's got all the skills and the enthusiasm he needs
0:11:56 > 0:11:59and it's great to see his level-headed approach.
0:11:59 > 0:12:03How's he going to get on? I think pretty well. Find out later in the show.
0:12:06 > 0:12:09I'm in Kent today at a rather wet Kemsley.
0:12:09 > 0:12:14It's just a short train ride from Gillingham and a mere hop from Sittingbourne.
0:12:14 > 0:12:17I'm hoping the lot I find here will brighten my day.
0:12:17 > 0:12:20This is the busy Grovehurst Road.
0:12:20 > 0:12:26Now, I'm here to see a plot of land for a guide of £120,000 to £130,000.
0:12:26 > 0:12:32Now, that is a lot for a piece of land, but it's not just any old piece of land.
0:12:32 > 0:12:38It's a plot with planning permission to build not one, not two, but three houses.
0:12:39 > 0:12:46The three houses will be three-bed starter homes with gardens and parking for two cars.
0:12:50 > 0:12:53So, let's talk about the benefits of a new build.
0:12:53 > 0:13:00No maintenance, no old lead piping to replace, no flaking paint, no crumbling pointing etcetera.
0:13:00 > 0:13:07New build homes are also four times more energy efficient than older homes, therefore, they're greener.
0:13:07 > 0:13:11Now, this also means they're far cheaper to live in with lower heating bills
0:13:11 > 0:13:17and there should be no onward chain, so significantly speeding up the buying process.
0:13:17 > 0:13:20Now, that is all the good news.
0:13:21 > 0:13:23And now for the bad news.
0:13:23 > 0:13:29New builds are often sold at a price premium which can reduce how much the property goes up in value
0:13:29 > 0:13:34in the first few years compared with other older properties in the same area.
0:13:34 > 0:13:40It's also getting harder and harder to secure that finance in this current climate.
0:13:40 > 0:13:44And so, whilst it's not impossible to make money on these developments,
0:13:44 > 0:13:48the profits of yesteryear are no longer for the taking.
0:13:48 > 0:13:53The key thing is to construct the right homes to appeal to the market,
0:13:53 > 0:13:56build them quickly and make them affordable.
0:13:56 > 0:13:58This site ticks most of the boxes.
0:13:58 > 0:14:03It was previously owned by the council, who drew up the outline planning permission,
0:14:03 > 0:14:08so getting formal permission shouldn't be a problem provided you stick to those plans.
0:14:08 > 0:14:11But are the current proposals right?
0:14:11 > 0:14:15What does a local estate agent think?
0:14:15 > 0:14:18Having had a chance now to look at the site, it's quite compact,
0:14:18 > 0:14:23it's very overgrown, but it's well connected to the highway,
0:14:23 > 0:14:25so you haven't got any access problems
0:14:25 > 0:14:29and, as such, the services should be quite easy to bring into the site.
0:14:29 > 0:14:34You've got no mature trees on the site, you haven't got any demolition work to undertake,
0:14:34 > 0:14:40therefore, from a development and construction point of view, this site should be easy to procure.
0:14:40 > 0:14:45Quite a few positives there, but what about the negatives?
0:14:45 > 0:14:52Grovehurst Road is a busy road. At the end of the day, these properties are situated right on that road,
0:14:52 > 0:14:55so there is going to have to be some form of discount on the price
0:14:55 > 0:14:59to reflect the fact that you do have a lot of roads and traffic noise.
0:14:59 > 0:15:05Taking all that into account, what kind of values could each of the three houses command?
0:15:06 > 0:15:13Prices of the individual houses, I'd have thought that prices in the order of perhaps £185,000 can be asked,
0:15:13 > 0:15:18and I would expect these to sell in the order of about £175,000.
0:15:18 > 0:15:24Multiply that by three and you're looking at £425,000 to £440,000.
0:15:24 > 0:15:29Even with build costs of approximately 150,000 to 200,000,
0:15:29 > 0:15:33this plot was always going to interest a few developers
0:15:33 > 0:15:37with its £130,000 guide price, even in the current market.
0:15:37 > 0:15:41It's a sizeable plot, it comes with planning permission,
0:15:41 > 0:15:45but the area and the road lets this lot down slightly.
0:15:45 > 0:15:49The market's not at its best so I worry about the profit margins here,
0:15:49 > 0:15:55but someone thought there was money to be made. Let's find it who that was as we go to the auction.
0:15:56 > 0:16:04Lot 104, we move to a residential site, a development site with outline planning permission.
0:16:04 > 0:16:09120 to start me? 120,000, land with planning for three houses.
0:16:09 > 0:16:11120? 120?
0:16:11 > 0:16:16120 I have in the middle. At £120,000 I'm bid.
0:16:16 > 0:16:18125. And 130.
0:16:18 > 0:16:21135. And 140.
0:16:21 > 0:16:24145. And 150.
0:16:24 > 0:16:27155. 160.
0:16:27 > 0:16:31165. £160,000 I am bid.
0:16:31 > 0:16:36At £160,000, then, being sold for the first time.
0:16:36 > 0:16:42This is lot 104. At 160,000. 162. 165.
0:16:42 > 0:16:44166. 168.
0:16:44 > 0:16:48And 170. 172. 175.
0:16:48 > 0:16:51178. 180 do I see?
0:16:51 > 0:16:53At 178,000 then.
0:16:53 > 0:16:56Being sold for the first time at 178,000.
0:16:56 > 0:16:58The gentleman standing on the wall.
0:16:58 > 0:17:02At 178 for the second time.
0:17:02 > 0:17:06178 for the third and final time. Are you all done?
0:17:06 > 0:17:08Sold at 178.
0:17:10 > 0:17:14David made that winning bid of 178,000.
0:17:14 > 0:17:17After a quick look around the site we'd had enough of the wet weather
0:17:17 > 0:17:19so I met David in a nearby cafe for a chat.
0:17:31 > 0:17:37- Dave, it's really nice to meet you and get out of the rain and find out all about your purchase.- Yeah.
0:17:37 > 0:17:38What is it you do for a living, David?
0:17:38 > 0:17:41I am a developer. I'm a carpenter by trade
0:17:41 > 0:17:46and I've been actually developing for wages for probably three or four years now.
0:17:46 > 0:17:49Now, when you say you've been doing this for wages, what do you mean?
0:17:49 > 0:17:54Well, I take wages out and then roll the money over because obviously you've got to go again,
0:17:54 > 0:17:57and hopefully, a little bit bigger each time.
0:17:57 > 0:18:01- Do you have your own building company? - No, no, I employ contractors.
0:18:01 > 0:18:03- So, you're a one man band, really? - Yeah, that's it.
0:18:03 > 0:18:10# Well I'm a one man band Nobody knows, nor understands
0:18:10 > 0:18:14# Is there anybody out there Wanna lend me a hand
0:18:14 > 0:18:17# To my one man band...#
0:18:17 > 0:18:20David's but has no plans to retire.
0:18:20 > 0:18:25He just wants to continue doing what he enjoys and property is a passion.
0:18:25 > 0:18:30- Let's have a look at these plans now, because I know you've been slightly tweaking them.- That's right.
0:18:30 > 0:18:31Have you made any changes?
0:18:31 > 0:18:36We're actually levelling out the step-down on the roofs and there is one step forward,
0:18:36 > 0:18:41- we're levelling that out, so it actually will be a straight block. - Why have you decided to do that?
0:18:41 > 0:18:45Because I think, aesthetically, it would have looked nice having it sort of staged.
0:18:45 > 0:18:51Yeah. Well, these are actually low cost housing so the cheaper we can build them for,
0:18:51 > 0:18:57and all the staggers and drop downs cost money to do, more work for the bricklayer, more work for the tiler.
0:18:57 > 0:19:00If we can level it out it makes the houses cheaper to build,
0:19:00 > 0:19:03and we can sell them cheaper so obviously move them on quicker.
0:19:03 > 0:19:05And what is your budget, David, for the work here?
0:19:05 > 0:19:08I would say around 150,000.
0:19:08 > 0:19:11Have you had to adhere to any special conditions?
0:19:11 > 0:19:17Because I know that, you know, keeping green is an important thing when building a new house.
0:19:17 > 0:19:23Well, there's coming more online now, every house in the nation will have to abide by these new rules,
0:19:23 > 0:19:26such as recycling rainwater,
0:19:26 > 0:19:31off road parking, things like cycle racks, everything like that.
0:19:31 > 0:19:33Tell me about the cycle racks!
0:19:33 > 0:19:36A cycle rack on the wall encourages someone to use their bike,
0:19:36 > 0:19:38which keeps everything greener.
0:19:38 > 0:19:43Yes, these days it's not just about building houses,
0:19:43 > 0:19:47it's how you build them, what materials you use and how efficient they are once built.
0:19:47 > 0:19:55# I want to ride my bicycle I want to ride my bike. #
0:19:55 > 0:19:57Will you be on this site every day...
0:19:57 > 0:20:03- Every day.- Checking everything, talking to everybody, sorting out the budget, being in charge?
0:20:03 > 0:20:07Every day. I'll actually get a team of bricklayers in to do the shell.
0:20:07 > 0:20:10I'll set out the ground. I'll do all the roofs.
0:20:10 > 0:20:15I'll do the kitchens, the stairs, second fix, first fix and the ground work.
0:20:15 > 0:20:17What sort of foreman are you?
0:20:17 > 0:20:24I would say I like to get on with all the trades that I use, I the same ones each time.
0:20:24 > 0:20:29And the guy that will help me do the roofs, a fellow carpenter, I went to school with him,
0:20:29 > 0:20:33he was my best man when I got married years ago and we always work together.
0:20:33 > 0:20:39You look really relaxed about it all and you seem to completely be enjoying doing something like this.
0:20:39 > 0:20:41- Am I right in saying that? - Definitely, yeah.
0:20:41 > 0:20:44But what is it about it that you love?
0:20:44 > 0:20:49You're just creating something, yeah. Years to come people will say,
0:20:49 > 0:20:51"Oh, Dave built that one.
0:20:51 > 0:20:55He's right. There is something to be proud of,
0:20:55 > 0:20:59but it involves an awful lot of effort and means his wife, Belinda,
0:20:59 > 0:21:02won't see much of him in the coming months.
0:21:02 > 0:21:08- How involved does your wife get? - Very involved.- Or does she just try and make sure you get home on time?
0:21:08 > 0:21:13No, no, no. She gets very involved. She can't actually wait until it's her time to come in.
0:21:13 > 0:21:18She'll do all the buying of the paint, choosing the bathrooms and so forth.
0:21:18 > 0:21:21And they she'll come and actually do the painting.
0:21:21 > 0:21:25Is it something you two just talk about constantly, property, property, property?
0:21:25 > 0:21:27- All the time, yeah. It is a hobby. - Is it?
0:21:27 > 0:21:30When we're on holiday we're looking at property.
0:21:30 > 0:21:35- We don't look in souvenir shops, we look in estate agents' windows! - You've certainly got the bug!
0:21:35 > 0:21:36Yeah, certainly.
0:21:36 > 0:21:43# Well I'm a one man band Nobody knows, nor understands
0:21:43 > 0:21:46# Is there anybody out there Wanna lend me a hand...? #
0:21:46 > 0:21:51David's come a long way since building his own house in 1979.
0:21:51 > 0:21:57He's equipped with all the knowhow and resources, plus the planning is in place.
0:21:57 > 0:22:02The hardest part of David's job is the resale. Will he recoup on his investment?
0:22:02 > 0:22:05It really is a tough market at the moment for new builds.
0:22:05 > 0:22:09So, he'll have to keep his eye firmly on the budget for this to be a success.
0:22:09 > 0:22:12You can find out how he gets on later in the programme.
0:22:14 > 0:22:18Coming up, there's lots to discover at this character cottage in Wiltshire.
0:22:18 > 0:22:22Yeah, it's tired, it dated, but I think you could do great things with this place.
0:22:23 > 0:22:30We return to this development plot in Kent hoping that more than just the weather has improved.
0:22:33 > 0:22:38But first, back to Alveston, where Rich bought this property by mistake.
0:22:38 > 0:22:40What are you doing?
0:22:40 > 0:22:43You wanted me to bid, didn't you? No, I said that has a small bathroom.
0:22:47 > 0:22:51It's been almost eight months since Rich, along with his wife, Sue,
0:22:51 > 0:22:57accidentally bought this two bedroom mid terrace in Alveston, near Derby.
0:22:57 > 0:23:01Sold on the back wall, and a half. Thank you.
0:23:01 > 0:23:04- Sold! Man at the back.- No!- I said, "I hope you wanted it, we've just bought it!"
0:23:13 > 0:23:16Well, Rich may not have intentionally bid on this house,
0:23:16 > 0:23:23but it wasn't so bad as it was in, fact, something that he and his wife had wanted to do for some time.
0:23:23 > 0:23:28So, for £56,500, Rich's dream of doing this for himself had finally happened
0:23:28 > 0:23:32and I'm looking forward to hearing how he got on.
0:23:33 > 0:23:35Everything's been taken down to bare brick.
0:23:35 > 0:23:39The whole room... Every single room has been gutted.
0:23:39 > 0:23:44All the trees have been removed out of the back garden, of which there was about nine!
0:23:44 > 0:23:46We're putting everything back together.
0:23:46 > 0:23:50Apart from the living room, the house is still work in progress,
0:23:50 > 0:23:54but it's looking pretty good judging by this.
0:23:54 > 0:23:59Rich intended to make this his first rental property and even had a tenant already lined up,
0:23:59 > 0:24:02his daughter, Kylie. But, things have changed slightly.
0:24:02 > 0:24:07We had actually planned to rent it to Kylie, but with the market the way it is
0:24:07 > 0:24:10she's actually gone and bought her own house round the corner from us,
0:24:10 > 0:24:14which is one of the reasons why I've not been here as much as I want to be,
0:24:14 > 0:24:16because I'm working on hers as well as my own.
0:24:16 > 0:24:21Although it's still unfinished, Rich had made some major improvements to this little terrace.
0:24:21 > 0:24:27Well, there was a porch up outside. Obviously, it was in a bit of a rickety state,
0:24:27 > 0:24:31so we knocked it all down and everything. There's still the concrete to take out.
0:24:31 > 0:24:35There was bushes and everything over here and a massive tree over here.
0:24:35 > 0:24:40We've taken all of that out. The only thing I wasn't expecting here is I thought we had a gas supply,
0:24:40 > 0:24:45so this has all had to be dug up. We've put a new gas main in, the service is there,
0:24:45 > 0:24:49but I've still got the guttering, the drains and everything to replace.
0:24:49 > 0:24:55Rich's original idea of taking the kitchen out into this alleyway hasn't been done
0:24:55 > 0:24:58because it would have been just too expensive for a rental property.
0:24:58 > 0:25:03However, that's not stopped him from improving the layout upstairs.
0:25:03 > 0:25:05I've done quite a few things up here.
0:25:05 > 0:25:08Obviously, everything has been gutted down to bare brick.
0:25:08 > 0:25:12I've taken this bathroom wall out because it was too far in.
0:25:12 > 0:25:16The bathroom is small as it is, but I've at least made it level with the landing.
0:25:16 > 0:25:18All that room has been gutted.
0:25:18 > 0:25:24Everything's been replastered. There's going to be new laminate flooring there.
0:25:24 > 0:25:25It's all been rewired,
0:25:25 > 0:25:29central heating put in and ceilings and everything decorated.
0:25:29 > 0:25:34Obviously, not finished yet, but it's getting there.
0:25:34 > 0:25:39With Rich's experience as an electrician and his general building knowledge,
0:25:39 > 0:25:42he's done almost all the internal work.
0:25:42 > 0:25:46Outside, the family have tackled the garden with impressive results.
0:25:46 > 0:25:49There's little that hasn't been changed or replaced
0:25:49 > 0:25:53but because of Rich's skills, his budget has been kept low.
0:25:56 > 0:25:59Because we didn't start straight away, we've made the best of all the offers
0:25:59 > 0:26:03and at the moment I've spent, what? £5,147.
0:26:03 > 0:26:10I would imagine by the time I've finished we'll be touching 6,000, so I'm well under budget.
0:26:10 > 0:26:15So, things are looking good on the financial side, but what about Rich's health?
0:26:15 > 0:26:20One of the main reasons behind this venture is that he had a problem with his back.
0:26:20 > 0:26:22Has renovating this house affected that?
0:26:26 > 0:26:31I'm quite pleased about it because the hospital said two years ago I possibly wouldn't be working now.
0:26:31 > 0:26:36Not only am I working now I feel stronger than I've ever felt,
0:26:36 > 0:26:41so if anything this has helped, but knowing that in years' time if I can't work
0:26:41 > 0:26:45it doesn't matter because I've got houses I can rent.
0:26:45 > 0:26:51There had been only seven years left on Rich and Sue's mortgage, but they extended it to finance this,
0:26:51 > 0:26:56but it's a calculated gamble which Rich feels is vital for their future.
0:26:56 > 0:27:03They bought the house for £56,500 and have spent only £6,000 on it.
0:27:03 > 0:27:08Has that money been well spent? We invited two local estate agents to come and take a look.
0:27:21 > 0:27:23Of what I can see so far the standard is fairly good,
0:27:23 > 0:27:24but the essentials are -
0:27:24 > 0:27:27the windows and doors, you've got to do the central heating,
0:27:27 > 0:27:29you've got to look at the services.
0:27:29 > 0:27:33You've got to get the basics right and I think that's what they've achieved.
0:27:33 > 0:27:35He's done it to a reasonable standard
0:27:35 > 0:27:38if he's going to rent the property out.
0:27:38 > 0:27:39All the walls are flat
0:27:39 > 0:27:43and the kitchen and bathroom are obviously work in progress,
0:27:43 > 0:27:49but it seems that he's going to be doing it to a reasonable standard and it looks... It looks OK.
0:27:49 > 0:27:54It's about the appeal, isn't it, and presentation? So, you've got to do the garden and the fencing
0:27:54 > 0:27:58If it looks as if it's all been presented well,
0:27:58 > 0:28:03tidy finish and reasonably good quality I think that does tick the boxes.
0:28:03 > 0:28:09Rich will be pleased to hear that seeing as this is the first property he's done himself.
0:28:09 > 0:28:15While he doesn't plan to sell it, how much value will he have added once it's finished?
0:28:15 > 0:28:22I would suggest an asking figure of around about £75,000, and it will sell in this market.
0:28:22 > 0:28:25I think you'd put it on the market at something like 79,950
0:28:25 > 0:28:28and expect to get as near to that as you possibly can.
0:28:28 > 0:28:30I didn't expect it to have gone up that much.
0:28:30 > 0:28:34It doesn't really matter to us because we've no intentions of selling it,
0:28:34 > 0:28:38we bought it to rent, but I thought with the current market at the moment
0:28:38 > 0:28:42it wouldn't quite have reached that figure, so that's a surprise.
0:28:42 > 0:28:44And a nice one at that.
0:28:44 > 0:28:51But this is an investment, so to be successful, Rich has to make a good rental return on it.
0:28:51 > 0:28:58Once the property's finished I would suggest a rental value of around about £450 per calendar month.
0:28:58 > 0:29:04My guess is the rental value would be probably somewhere between £400 and £425 a calendar month.
0:29:07 > 0:29:09I'm actually quite surprised about that, as well.
0:29:09 > 0:29:14We don't know, but we thought probably around 350ish mark, so, yeah, that's a nice bonus.
0:29:14 > 0:29:16Sold at the back wall.
0:29:21 > 0:29:28So, what started out as a case of mistaken identity has turned out to be a very successful venture,
0:29:28 > 0:29:33but has this encouraged Rich to add another property to his new portfolio?
0:29:36 > 0:29:40It's certainly encouraging. I think we'll be doing more at that sort of valuation!
0:29:44 > 0:29:50With a view like that you could only be in the White Horse County of Wiltshire.
0:29:50 > 0:29:55Surrounded by this beautiful countryside is the village I've come to see, Littleton Panell.
0:29:55 > 0:30:01So, when up for auction came a three bedroomed end of terrace, double fronted,
0:30:01 > 0:30:06Grade 2 listed character cottage with a guide price of 160,000 quid,
0:30:06 > 0:30:12you could imagine it got a lot of interest. And from the outside, it's pretty spiffing.
0:30:15 > 0:30:18Of course, buying a listed property comes with issues.
0:30:18 > 0:30:25For example, you'll need consent for almost everything you do, even installing a fire alarm.
0:30:28 > 0:30:34OK. Right, well, I'm categorising it as 'original condition' straight away,
0:30:34 > 0:30:36but it's got a nice feel to it.
0:30:36 > 0:30:41We've got a sitting room over that side and through into what I suppose is the main living area.
0:30:41 > 0:30:42Love the little windows.
0:30:42 > 0:30:45It's tired, it's dated, but I think you could do great things with this place.
0:30:45 > 0:30:49Look at this fireplace. Lovely to have that.
0:30:49 > 0:30:52So, yeah, onwards.
0:30:52 > 0:30:55Upstairs there are three good sized bedrooms,
0:30:55 > 0:31:00again needing a bit of money spent on them to bring them up to date.
0:31:00 > 0:31:04And while you're at it, this bathroom needs to be completely ripped out,
0:31:04 > 0:31:08though the room itself is also a decent size.
0:31:08 > 0:31:10But I'm still looking for the heart of any home.
0:31:10 > 0:31:14One thing that's quite nice is that there's lots of different levels in the house
0:31:14 > 0:31:17with these sort of steps into different parts.
0:31:17 > 0:31:18This is the kitchen.
0:31:18 > 0:31:23We've got lots of different sort of doors and places to store things and the space itself,
0:31:23 > 0:31:28well, it's a good size, but clearly very, very dated. You could spend a good bit of money in here,
0:31:28 > 0:31:33but you would get your returns because you'd dramatically change the feel of this house
0:31:33 > 0:31:34if you improved the kitchen.
0:31:34 > 0:31:41And, when it comes to outside, well, there's good news and bad news.
0:31:44 > 0:31:48The thing is, you've got a nice view over the garden. The only problem is it's not your garden.
0:31:48 > 0:31:52It's actually owned by the house two doors down.
0:31:52 > 0:31:56You have got this plot, but that has shared access for the properties round here,
0:31:56 > 0:31:59so a bit higgledy piggledy, especially when your garden is over that way.
0:31:59 > 0:32:02So, you know what? It's not ideal.
0:32:04 > 0:32:06So, what's the good news?
0:32:06 > 0:32:13Well, to the side of the cottage, behind the garage, you'll find the garden and it doesn't disappoint.
0:32:13 > 0:32:18So, the house has great potential, but the potential profit, I think,
0:32:18 > 0:32:21is in the land that also comes with the property.
0:32:21 > 0:32:26It's this bit here, extending all the way round here to where this double garage is at the moment.
0:32:26 > 0:32:28Now, it's about a quarter of an acre in total.
0:32:28 > 0:32:31There has been a planning application put in in the past
0:32:31 > 0:32:33to actually put a dwelling on this site.
0:32:33 > 0:32:37It was turned down, but only on highways' grounds.
0:32:37 > 0:32:42Basically, they were saying they don't like the fact that the access here is on to a fairly busy road.
0:32:42 > 0:32:46So, if you could deal with that, if you could find some way round it,
0:32:46 > 0:32:51I don't know what that might be, or just coming up with a solution that the planners liked,
0:32:51 > 0:32:58then the idea of building something on here, well, now you're talking some serious profit.
0:32:58 > 0:33:03For £160,000 suddenly this auction lot has options
0:33:03 > 0:33:07and not just on the large plot of land.
0:33:07 > 0:33:08The cottage is Grade 2 listed,
0:33:08 > 0:33:11but that shouldn't put you off making changes,
0:33:11 > 0:33:14as an agent from the auction house that sold it points out.
0:33:14 > 0:33:16It would be worth extending the cottage
0:33:16 > 0:33:19as it's only got three bedrooms at the moment,
0:33:19 > 0:33:22so you could create a fourth bedroom with an ensuite,
0:33:22 > 0:33:27which would make it more of a family home. And also add another reception room downstairs.
0:33:27 > 0:33:32If you just really renovate what's already currently here, potentially updating everything inside,
0:33:32 > 0:33:35you'd be looking in and around that Stamp Duty bracket of 250.
0:33:35 > 0:33:40If the market steps up a little bit, then you might take it over the Stamp Duty bracket.
0:33:40 > 0:33:43If you did extend it to create a fourth bedroom
0:33:43 > 0:33:46then you'd be getting nearing up towards that 300,000 mark.
0:33:46 > 0:33:50If you secured planning permission for a new built on that plot
0:33:50 > 0:33:56you could potentially add another £200,000 to that, not including building costs, of course.
0:33:56 > 0:34:02But once all the work's been completed, would this make a good long-term investment?
0:34:02 > 0:34:06Looking at the figures, you'd be in and around £770-£750 per calendar month.
0:34:06 > 0:34:09Again, there would be quite a good demand for it -
0:34:09 > 0:34:14contracts with the MOD, Honda, other companies that would be looking for a cottage of this size as well.
0:34:19 > 0:34:24Well, I don't know what you think, but I think this is a very pretty little cottage.
0:34:24 > 0:34:26A few issues with the fact that it's Grade 2 listed,
0:34:26 > 0:34:29but that's more than compensated for by the fact
0:34:29 > 0:34:32you've got that plot of land at the side that you could develop,
0:34:32 > 0:34:38subject, of course, to planning permission. Let's see who fancied this one when it went to auction.
0:34:38 > 0:34:44Pretty cottage with a big plot on the side.
0:34:44 > 0:34:47Good village, as you all know.
0:34:47 > 0:34:51Where are you going to start me, 170, somebody? £170,000?
0:34:51 > 0:34:58150, then. OK, we'll start there at 150. At £150,000. I'm selling lot 32 at £150,000.
0:34:58 > 0:35:01Five I'll take to get on. 155. 160.
0:35:01 > 0:35:07At 160. 165. 170 I've got. 175. 180 may I say? 180 I'm bid.
0:35:07 > 0:35:14At 180. The bid's here on the wall at £180,000. 185, or 182, if you like?
0:35:14 > 0:35:21Otherwise, at £180,000, it's going to be sold for the first time. 182, OK. I've got you, sir, 182.
0:35:21 > 0:35:26184. Yes? Yeah? 184, OK. 186 to you, sir. 186.
0:35:26 > 0:35:33188. 190. 192. 194. 196.
0:35:33 > 0:35:39198. 200. 202. 204.
0:35:39 > 0:35:44208. 210 to you, sir.
0:35:44 > 0:35:48210. 212.
0:35:48 > 0:35:5314. At £214,000. 216.
0:35:53 > 0:35:5718. At 218. OK, the bid's over there. You're out now.
0:35:57 > 0:36:03At £218,000 sat down. OK. At £218,000. Are you finished?
0:36:03 > 0:36:09At £218,000, then, for the first time. £218,000 for the second time.
0:36:09 > 0:36:13And 218 to all finish. Third and last time at 218. BANGS GAVEL
0:36:13 > 0:36:15Your number, sir, is?
0:36:16 > 0:36:20'The purchase of this period property was a bit of a family affair.
0:36:20 > 0:36:23'Chris was bidding on behalf of his stepson Adam
0:36:23 > 0:36:29'and his girlfriend, Laura, all with a bit of financial help from mum, Alison.
0:36:29 > 0:36:35'I was looking forward to hearing what their plans were so I met them at the cottage to find out.'
0:36:35 > 0:36:41So, Adam, Laura, nice to meet you both. Congratulations. Why did you want to buy this place?
0:36:41 > 0:36:46I'm in university, but I'm looking for a work placement year in this area, in which case
0:36:46 > 0:36:49I could live here for the year and help Adam do it up, so...
0:36:49 > 0:36:55So, she'll be living with me for a year and, hopefully, get the property into the way we'd like it
0:36:55 > 0:36:58in that time and, yeah, it would be a home for us.
0:36:58 > 0:36:59So you've bought it to be a home?
0:36:59 > 0:37:04Yeah, that's why we bought it, yeah. To live in, not to sort of do up and sell on again.
0:37:04 > 0:37:05It was somewhere to live.
0:37:05 > 0:37:08Do you have much experience? What you do for a living?
0:37:08 > 0:37:13I'm an engineer and, yeah, we've done one property before.
0:37:13 > 0:37:20Where I lived in university, with my mother's support, we bought a house and she put down the deposit,
0:37:20 > 0:37:24the rent from the other tenants, my student friends, paid the mortgage.
0:37:24 > 0:37:27We sold it. The money we made has gone towards this place.
0:37:27 > 0:37:30- What made you want to buy this place?- Primarily the garage.
0:37:30 > 0:37:36The garage! Yeah. I looked at a number of properties, most modern houses have a much smaller garage
0:37:36 > 0:37:40and, yeah, that had everything I was looking for. So, yeah, it was good.
0:37:40 > 0:37:44- He doesn't mind about the house, just the garage!- OK.
0:37:44 > 0:37:51- So, why this house, then, obviously apart from the garage?- That was it. - You can't be serious!
0:37:51 > 0:37:54- I am.- Not the charm of the house, the Grade 2 listing,
0:37:54 > 0:37:58the nice position, the garden, the potential planning permission?
0:37:58 > 0:38:03Well, those were all bonuses that worked out well in my favour, I suppose.
0:38:03 > 0:38:06But, yeah, I prefer kind of older houses than newer builds.
0:38:06 > 0:38:10It's certainly got some nice aspects about it, it's a nice house,
0:38:10 > 0:38:15but, yeah, primarily it was the garage that swung it for me, really.
0:38:17 > 0:38:20'OK, I'm fairly certain that he's not pulling my leg!
0:38:20 > 0:38:24'He really has spent 218,000 quid on a Grade 2 listed cottage
0:38:24 > 0:38:27'with a building plot just for the garage.
0:38:27 > 0:38:32'Well, as I've said, the property market is a little strange at the moment.'
0:38:33 > 0:38:39- So, how come you're so into garages? - I just want space for my cars, really.- How many cars have you got?
0:38:39 > 0:38:42At the moment I've got two, but I'm looking to buy another.
0:38:42 > 0:38:47The thing is, when I lived at university I lived on a very steep incline, no parking or anything.
0:38:47 > 0:38:50I just hate parking on the road, come out and your cars have been damaged
0:38:50 > 0:38:54and it's something that's important to me, so, I want a garage.
0:38:54 > 0:39:01'Now, this all sounded a bit unusual until I discovered that Adam is an engineer for a Formula One team.
0:39:01 > 0:39:08'Cars are clearly a passion he's had most of his life, hence the attraction of that garage.'
0:39:08 > 0:39:13But while he toils over carburettors and spark plugs, Laura has plans for the house.
0:39:13 > 0:39:18The first thing we're going to do is get a new bathroom and kitchen and then just do each room,
0:39:18 > 0:39:24- just make it nice, a bit more modern than this decoration at the moment.- And Adam?
0:39:24 > 0:39:28First things first, we need to get it rewired. We can move on from there, really.
0:39:28 > 0:39:33So, any plans for any sort of major structural works or modifications?
0:39:34 > 0:39:36We'd hoped the smaller downstairs toilet,
0:39:36 > 0:39:41we'd hoped to, perhaps, convert into a toilet with a shower room in there.
0:39:41 > 0:39:44We're deliberating over plans for the kitchen,
0:39:44 > 0:39:48what with the possibility of knocking out one of the walls.
0:39:48 > 0:39:52We need to determine if it's structural, but these are things we can play with.
0:39:52 > 0:39:56OK. Any ideas on a budget for the work?
0:39:56 > 0:40:02Well, from the money that we made on the property that I lived in while I was at university,
0:40:02 > 0:40:06the original intention was to use that to pay off my student loan,
0:40:06 > 0:40:09but as it's worked out, the rates on that aren't too bad,
0:40:09 > 0:40:11so the money would be better spent on this property.
0:40:11 > 0:40:14We think we've probably got around £20,000 to spend.
0:40:14 > 0:40:19- What about timescales, then?- Well, obviously we want to get everything done as soon as we possibly can.
0:40:19 > 0:40:27- Make it liveable.- Yeah. But I think... I think we'll be looking at maybe three, four months
0:40:27 > 0:40:30before we're somewhere better off than we are now.
0:40:30 > 0:40:34'So, this is a first for both Adam and Laura.
0:40:34 > 0:40:39'Helping them make it a reality is Adam's mum, Alison, who has helped with the finance,
0:40:39 > 0:40:43'but she also has some plans of her own.'
0:40:43 > 0:40:46Now, what's your involvement in this whole thing going to be?
0:40:46 > 0:40:53Well, I've funded it so far. Adam is going to get a mortgage for his part of... For the house.
0:40:53 > 0:40:58And then what I'd like to be able to do is get planning permission on this area here
0:40:58 > 0:41:02and be able to put a new build in here in keeping with the Grade 2 listing.
0:41:02 > 0:41:05You'll have to leave the garage where it is
0:41:05 > 0:41:08otherwise you're going to be in massive trouble, aren't you?
0:41:08 > 0:41:12I either have to leave it or move it, as he'll be living in the garage, practically.
0:41:12 > 0:41:16It has had an application turned down in the past, hasn't it?
0:41:16 > 0:41:18What are you going to do to counteract that?
0:41:18 > 0:41:22The property is owned up to the telegraph pole over there,
0:41:22 > 0:41:26and if we cut the bank right back to here the visibility should, I hope,
0:41:26 > 0:41:29be sufficient to obtain planning permission.
0:41:29 > 0:41:33Right, OK. And have you had any indication that that might be the case?
0:41:33 > 0:41:38- Not yet, no. We're just in the early stages of getting plans drawn up. - Right.
0:41:38 > 0:41:43'If successful, Alison hopes to be able to recoup her investment.
0:41:43 > 0:41:47'She would pay off Adam's mortgage and have some money left over
0:41:47 > 0:41:52'to spend on the next investment for one of her other eight children.'
0:41:52 > 0:41:57- Eight!- Yes. So, the next one down and we'll be able to help her along.
0:41:57 > 0:42:02- Are you planning to help them all in the same way that you've helped Adam?- Yes, we'd like to.
0:42:02 > 0:42:03- Really?- Yes.- Wow!
0:42:03 > 0:42:08I quite like doing properties up and so I... Yes.
0:42:08 > 0:42:13Well, with the help from mum, Alison, Adam and Laura have got themselves a great place here.
0:42:13 > 0:42:17There is development potential, all sorts of things they can do with it,
0:42:17 > 0:42:21but, of course, the only thing that Adam is really bothered about is that garage.
0:42:21 > 0:42:24Will it be filled with a new car when we return in a few months?
0:42:24 > 0:42:27You'll have to join us later in the show to find out.
0:42:30 > 0:42:35Well, the weeks and months have rolled by and there's no escaping it,
0:42:35 > 0:42:38it's time to return to see how our buyers have fared.
0:42:38 > 0:42:41Like you, we're trying to find out what's been happening.
0:42:41 > 0:42:44It's time to take off the dustsheets and see what's lurking beneath.
0:42:52 > 0:42:57It may have been a miserable rainy day when I visited Kemsley in Kent,
0:42:57 > 0:43:00but the outlook is bright for carpenter and builder David.
0:43:00 > 0:43:06He paid £178,000 at auction for this piece of land just a few minutes from where he lived.
0:43:06 > 0:43:12With it came planning permission to build three three-storey terraced houses.
0:43:12 > 0:43:17David planned to build them, then sell or let depending on the market.
0:43:17 > 0:43:22While the weather hasn't improved much in months, the plot of land is a different story.
0:43:34 > 0:43:38Well, actually building the houses hasn't been a problem.
0:43:38 > 0:43:41It's been a nice build, gone smoothly,
0:43:41 > 0:43:48the only problem is something that I didn't know about when I bought it, was the Code 3 Sustainable Homes.
0:43:48 > 0:43:53Before I bought the plot, I went into the council to find out what it entailed.
0:43:53 > 0:43:58Because it was a new thing they couldn't really give me a lot of information, only an outline,
0:43:58 > 0:44:03which I thought was quite reasonable and I went ahead and bought the plot.
0:44:03 > 0:44:08And then, after that, you have to find someone who's a registered assessor for the points system,
0:44:08 > 0:44:13because it's all done on a points system, and he did his counts
0:44:13 > 0:44:19and he actually got down to me just before Christmas with news of what I would have to do.
0:44:19 > 0:44:25And the news was quite shocking, really, the amount of work I'd have to do to get it up to Code 3.
0:44:25 > 0:44:30'When David bought this land, he asked the council about the Code 3 Sustainable Housing standard.
0:44:30 > 0:44:34'Because it was all fairly new, nobody knew for certain what that involved.
0:44:34 > 0:44:40'Perhaps upping the installation or the drainage? But, in fact, it meant quite a bit more.
0:44:50 > 0:44:52'To reach Code 3 standard,
0:44:52 > 0:44:59'facilities such as underground rain tanks, grey water tanks and thermal heat pumps had to be installed,
0:44:59 > 0:45:01'which is where David had problems.'
0:45:01 > 0:45:07This is the kitchen/dining room area. This is where the Code 3 would cause me the most problems.
0:45:07 > 0:45:14This is the only place where we could position a thermal heat pump and it's the size of a double fridge-freezer,
0:45:14 > 0:45:18and it's also got to be linked outside to another unit
0:45:18 > 0:45:21which is probably the size of two wheelie bins,
0:45:21 > 0:45:25and they've got to be linked together, but, as you can see, it's not a very big area.
0:45:25 > 0:45:30It's the only area where you can have a table and chairs, and there just literally wouldn't be room.
0:45:30 > 0:45:35And, not only that, it's got to be linked right up through all the floors to the loft area
0:45:35 > 0:45:41where you'd have to have a heat exchanger and there's no room in the loft area for this heat exchanger.
0:45:41 > 0:45:44And you would have ducting through all the bedrooms,
0:45:44 > 0:45:49and in the kitchen area, you'd have to have another ducting off the cooker hood
0:45:49 > 0:45:52which also runs up through the bedrooms into the heat exchanger,
0:45:52 > 0:45:57and from the heat exchanger you'd have to have more ducting to come round to all the rooms,
0:45:57 > 0:46:01so, it would just be totally unpractical to put it in.
0:46:09 > 0:46:12'After several discussions with the council,
0:46:12 > 0:46:17'David's hoping they'll compromise on the assessment of these new builds.
0:46:17 > 0:46:21'While he will include recycling bins, water butts and other items,
0:46:21 > 0:46:23'he's building the houses in the way he knows.'
0:46:26 > 0:46:31This is the first floor layout. Behind me, there's bedroom number one that overlooks the back garden.
0:46:31 > 0:46:35This is a bathroom. The bath comes down on the right-hand side here.
0:46:35 > 0:46:39Wash basin, toilet, heated towel rail.
0:46:39 > 0:46:42I'll come through into the landing.
0:46:42 > 0:46:48That is the second largest bedroom, on the top floor in the actual roof space.
0:46:48 > 0:46:50And come through into a third bedroom.
0:46:50 > 0:46:54It's an L-shaped bedroom with a wardrobe space on the right.
0:46:54 > 0:47:00And then you turn into the main part of the bedroom where you'd have your bed and a dressing table
0:47:00 > 0:47:02overlooking the front.
0:47:02 > 0:47:05'David has many years of experience building houses
0:47:05 > 0:47:10'and it's only the new Code 3 regulations that caused him problems.
0:47:10 > 0:47:12'Everything else went exactly to plan.'
0:47:12 > 0:47:16What I want to do is finish them in a conventional way, in the way I planned
0:47:16 > 0:47:17and the way I budgeted for.
0:47:17 > 0:47:24Obviously, we can do a lot of the Code 3 Sustainable Homes which will move us towards the certificate,
0:47:24 > 0:47:28but we wouldn't have done enough to get the Code 3, so it's pointless going for it.
0:47:35 > 0:47:40'So, how has all this affected David's original budget,
0:47:40 > 0:47:46'especially considering there was a three-month delay before he even broke ground?'
0:47:46 > 0:47:52I think the original budget was 140, 150, and I think we'll be about 160, somewhere around there,
0:47:52 > 0:47:53so, pretty close, really.
0:47:53 > 0:47:56'Hopefully, the council will see David's point of view
0:47:56 > 0:47:59'and he can do the finish to his own high standards,
0:47:59 > 0:48:03'but is he likely to make a profit from this project after paying £178,000 for the plot
0:48:03 > 0:48:09'and a further £160,000 building the houses?'
0:48:22 > 0:48:25My first thoughts on the property is it's in a good location
0:48:25 > 0:48:27with regard to the station.
0:48:27 > 0:48:30Being a townhouse, it's different to the properties
0:48:30 > 0:48:33in the road and a good amount of outside space,
0:48:33 > 0:48:34with parking and a garden.
0:48:34 > 0:48:37Three bedrooms are always highly in demand in this area
0:48:37 > 0:48:40and due to the benefit of the great communication network
0:48:40 > 0:48:45surrounding this area, I think there's a high demand for a property of this type.
0:48:45 > 0:48:52'Until the development is completely finished, it's difficult to say exactly how well David has done,
0:48:52 > 0:48:55'but is there a demand for this type of rental property around here?'
0:48:55 > 0:48:58In terms of rent, I think this property
0:48:58 > 0:49:04will be able to be rented between £750 to £775 per calendar month.
0:49:04 > 0:49:08For rental value, I think the mid- and end-terraces would roughly be about the same
0:49:08 > 0:49:10at £725 per calendar month.
0:49:10 > 0:49:13They're higher than what I thought, yeah. Yeah.
0:49:13 > 0:49:18Originally the estimate I had was to £650 to £700, so that's good.
0:49:18 > 0:49:24'That's great news on the rental valuations, but what about the sale prices?
0:49:24 > 0:49:29'It cost David about £338,000 to buy the plot and build three new homes here,
0:49:29 > 0:49:32'so what could they be worth once finished?'
0:49:32 > 0:49:39For resale, I'd recommend putting the properties on the market for £145,000 for the end-terrace
0:49:39 > 0:49:42and £140,000 for the mid-terrace.
0:49:42 > 0:49:48I think on completion, this property will sell in the region of £150,000 to £160,000.
0:49:48 > 0:49:51Yeah, I would say the second one is closer to the mark.
0:49:51 > 0:49:58The valuation we had was 159 for the end-of-terrace and 155 for the middle-terrace.
0:49:58 > 0:50:01That would leave David with a handsome profit.
0:50:01 > 0:50:05Although this project has been a success,
0:50:05 > 0:50:07he's not about to do it again anytime soon.
0:50:07 > 0:50:11I think with new builds, there's too much red tape now.
0:50:11 > 0:50:14It's just hard work. Unless you were doing one big house,
0:50:14 > 0:50:18which isn't viable at the moment, but I think then you'd be all right,
0:50:18 > 0:50:21but with these small developments there's too much legislation.
0:50:33 > 0:50:38Sold for £218,000, this double fronted, two bedroom,
0:50:38 > 0:50:42Grade II listed cottage in Wiltshire was a great auction buy.
0:50:42 > 0:50:44With a building plot to the side,
0:50:44 > 0:50:48it was pretty obvious why Adam and his girlfriend, Laura,
0:50:48 > 0:50:51bought it as their new home, with a little help from Adam's mum.
0:50:51 > 0:50:55Except, as it turned out, it wasn't that obvious.
0:50:56 > 0:51:00- What made you want to buy this place?- Primarily the garage.
0:51:00 > 0:51:01- The garage?!- Yeah!
0:51:01 > 0:51:04He doesn't mind about the house, just the garage!
0:51:04 > 0:51:07No, he was really serious!
0:51:07 > 0:51:11But, thankfully, Laura had her own ideas for the cottage,
0:51:11 > 0:51:14while Adam's mum, Alison, planned to recoup some of her investment
0:51:14 > 0:51:19by getting planning permission to build a house on the large side plot.
0:51:19 > 0:51:23Nine months later, we're back to see what's changed.
0:51:23 > 0:51:25Well, while there's no sign of that new build,
0:51:25 > 0:51:28inside there have been some changes.
0:51:30 > 0:51:35As you can see, upstairs is quite different to how it originally was.
0:51:35 > 0:51:38It was all appallingly decorated.
0:51:38 > 0:51:40There were millions of different wallpapers,
0:51:40 > 0:51:45the bathroom was in a terrible state and the toilet over that side.
0:51:45 > 0:51:48So, all the bedrooms, we've completely redecorated,
0:51:48 > 0:51:50had new carpets, everything.
0:51:50 > 0:51:53Yeah, so it's all been completely redone up here, really,
0:51:53 > 0:51:56and we are very close to completely finishing.
0:51:56 > 0:52:00Just carpets and then furniture up here, really, and then that's it.
0:52:01 > 0:52:03Downstairs has been restructured, as well.
0:52:06 > 0:52:09As you can see, the main developments in this room are
0:52:09 > 0:52:14we've knocked out the original pantry-style cupboard that was here.
0:52:14 > 0:52:16That involved having an RSJ put in.
0:52:16 > 0:52:19The whole ceiling had to be supported while it was removed.
0:52:19 > 0:52:21We've had all the floor replaced,
0:52:21 > 0:52:26and what we will be having fitted in here is a whole new kitchen
0:52:26 > 0:52:28in a kind of L shape all the way round.
0:52:28 > 0:52:32It'll probably be the small breakfast table over here for seating.
0:52:32 > 0:52:35And then, out the back there, we've converted what was previously
0:52:35 > 0:52:39a small downstairs toilet into a wet room with shower facilities,
0:52:39 > 0:52:42and, yeah, sort of a smaller downstairs bathroom.
0:52:42 > 0:52:47As you can see, Adam and Laura have still to move in.
0:52:47 > 0:52:49They hope to do so in the next few weeks
0:52:49 > 0:52:51once all the work has been completed.
0:52:51 > 0:52:55Meanwhile, Adam's mum, Alison, has been looking into plans to build
0:52:55 > 0:52:58a house on this side plot of land and is currently in the process
0:52:58 > 0:53:01of buying half an acre from next door's field.
0:53:01 > 0:53:04Originally, we were going to move the garage and put it over here
0:53:04 > 0:53:09by the boundary and put a four-bedroomed house, detached house,
0:53:09 > 0:53:12in the area of the front garden by lowering all the garden down.
0:53:12 > 0:53:15There was a declined planning permission before,
0:53:15 > 0:53:20but it was only declined in terms of access on the highways.
0:53:20 > 0:53:22So, hopefully, in the long term,
0:53:22 > 0:53:26if we are able to realise the negotiation on the field
0:53:26 > 0:53:30and put another access in, then we've got the possibility
0:53:30 > 0:53:33of building long term.
0:53:33 > 0:53:37If successful, that new build would not only help pay off the mortgage
0:53:37 > 0:53:40of this cottage, but allow Alison to fund
0:53:40 > 0:53:44the next property for another one of her eight children!
0:53:44 > 0:53:47But the majority of work here has been managed and funded
0:53:47 > 0:53:50by Adam and Laura, so what has it cost them so far?
0:53:52 > 0:53:56The initial budget we estimated to be round about £20,000...
0:53:56 > 0:53:59and I think we've stuck reasonably well with that.
0:53:59 > 0:54:03Obviously, it's not been the best time for the housing industry,
0:54:03 > 0:54:06but, contrastingly, it means that we've been able to get quotes
0:54:06 > 0:54:10from somebody to do work and then somebody else will undercut that.
0:54:10 > 0:54:14It means that we've got a lot done for less money than we originally thought it would be,
0:54:14 > 0:54:17so that has worked well in our favour.
0:54:17 > 0:54:21So, for £218,000 and a budget of around £20,000,
0:54:21 > 0:54:24Adam and Laura have nearly finished their new home
0:54:24 > 0:54:26and are looking forward to moving in.
0:54:26 > 0:54:28Well, at least Laura is!
0:54:28 > 0:54:31Adam will be too busy in the garage with his car!
0:54:48 > 0:54:50While he takes his pride and joy out for a spin,
0:54:50 > 0:54:55we invited two local estate agents to come and see what they thought of this cottage.
0:55:07 > 0:55:09The style, for me, looks very, very good.
0:55:09 > 0:55:12The finish looks high quality. They've not gone too modern.
0:55:12 > 0:55:16They kept the age of the property, tried to keep the character here.
0:55:16 > 0:55:19- A very nice property. - I think it's a fantastic cottage.
0:55:19 > 0:55:22They've obviously spent a lot of time and effort
0:55:22 > 0:55:24bringing it back up to its original state.
0:55:24 > 0:55:27They've done some expensive refurbishment inside,
0:55:27 > 0:55:30the heavy things like rewiring, new boiler.
0:55:30 > 0:55:34The garden's a nice discovery. It was fairly overgrown when we sold it.
0:55:34 > 0:55:38When the work's done, it looks like it will be quite a high standard.
0:55:38 > 0:55:42The area... A very nice area. It's a very good sized garden, as well.
0:55:42 > 0:55:46It's going to be a nice property for people looking for character.
0:55:46 > 0:55:48Bought for £218,000,
0:55:48 > 0:55:51they spent 20 grand renovating it to its current state.
0:55:51 > 0:55:55While it may not be finished, what do the estate agents
0:55:55 > 0:55:58think it could be worth in today's market?
0:55:58 > 0:56:00Resale value for me, once it's renovated,
0:56:00 > 0:56:04you'd probably be looking around £250,000 to £275,000 mark.
0:56:04 > 0:56:08Once renovated, I'd imagine that the price is going to need to be
0:56:08 > 0:56:10around that Stamp Duty of 250,
0:56:10 > 0:56:13possibly 275...as a top level.
0:56:13 > 0:56:17- Wow!- That's better than we were anticipating
0:56:17 > 0:56:20considering the current climate, really, yeah.
0:56:20 > 0:56:23- That's excellent.- That's good. - Especially in its current state.
0:56:23 > 0:56:26I thought it would be about 250 in the market
0:56:26 > 0:56:29as it was when we bought the house, so that's very good.
0:56:29 > 0:56:30Very pleased, yeah.
0:56:30 > 0:56:35If Alison succeeds in getting planning permission to build that new four-bed,
0:56:35 > 0:56:38they'll all be on to a winner, but for now Adam and Laura
0:56:38 > 0:56:41can look forward to moving into their first home together,
0:56:41 > 0:56:44complete with that all important garage!
0:56:54 > 0:57:00Well, that's it for today's show. Make sure you join us next time for more Homes Under The Hammer.
0:57:00 > 0:57:02- See you then!- Goodbye.- Goodbye.
0:57:22 > 0:57:26Subtitles by Red Bee Media Ltd
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