0:00:02 > 0:00:05Hello. Looking for a do-er-upperer or a plot of land to build on?
0:00:05 > 0:00:08Or an investment property or somewhere to live?
0:00:08 > 0:00:09You can find them all at auction.
0:00:35 > 0:00:39Now, there are some key things to remember when buying at auction.
0:00:39 > 0:00:42Do your research and have your finances sorted out in advance.
0:00:42 > 0:00:46So, did today's pupils get an A grade or did they fail?
0:00:48 > 0:00:54I know exactly what this grand, but run-down, three-bedroom house in Cardiff needs...
0:00:54 > 0:00:56A bit of TLC.
0:00:58 > 0:01:03There's a three-bedroom property in Southampton where the value is at the back.
0:01:03 > 0:01:06What I really like about this room is that cracking little view.
0:01:08 > 0:01:14And in Maida Vale, north-west London, this flat has one thing wrong right from the start.
0:01:14 > 0:01:18Straight into the flat and you're faced with the loo.
0:01:20 > 0:01:22All these properties have gone to auction and we'll be finding out
0:01:22 > 0:01:26who bought them and what they paid when they went under the hammer.
0:01:31 > 0:01:36A glistening bay, peaceful parks and a castle in the city centre.
0:01:36 > 0:01:38Where am I? That's right - Cardiff.
0:01:40 > 0:01:45Now, 20 minutes' walk from the centre of the Welsh capital,
0:01:45 > 0:01:47surely property is going to cost you an arm and a leg.
0:01:47 > 0:01:51Not necessarily. Here I am in Roath, where up for auction was
0:01:51 > 0:01:56a three-bedroomed end-of-terrace, which had a guide price of 65 grand.
0:01:56 > 0:01:58Got to be worth a look.
0:01:58 > 0:02:03And for that guide price it looks pretty impressive from the outside.
0:02:03 > 0:02:05Wow.
0:02:05 > 0:02:12Walk through the front door and you immediately get that feeling that this is a grand old house
0:02:12 > 0:02:15that's been sadly neglected, but it's very impressive.
0:02:15 > 0:02:18A big, high ceiling, some features still here.
0:02:18 > 0:02:23Got this lovely staircase going up there, rooms towards the back.
0:02:23 > 0:02:27And then, look at this, for a fantastic front reception room.
0:02:27 > 0:02:30Absolutely huge and, again, high ceilings.
0:02:30 > 0:02:32Obviously, this place is in a right old state.
0:02:32 > 0:02:35It looks like it's been used, been abandoned, I don't know.
0:02:35 > 0:02:39More importantly, we've got some serious issues with
0:02:39 > 0:02:44damp on this chimney breast and my guess is something's going wrong with the flashing up on the roof.
0:02:44 > 0:02:50But, as I said, the overall impression is a grand house that just needs a bit of TLC.
0:02:50 > 0:02:52# Give me all your loving
0:02:52 > 0:02:55# All your hugs and kisses too... #
0:02:55 > 0:02:57It also needs a skip.
0:02:57 > 0:03:02Throughout the ground floor, there's furniture everywhere and I don't think any of it's usable.
0:03:02 > 0:03:06And in a good-sized basement, guess what? More clutter.
0:03:06 > 0:03:12A house-clearance company would possibly take this away and save you on skip costs.
0:03:12 > 0:03:16It's unlikely they'll want tired kitchen units,
0:03:16 > 0:03:20but a renovation here could include French doors, leading onto a little garden.
0:03:20 > 0:03:23Upstairs, there's more clutter for the skip, including a Santa,
0:03:23 > 0:03:26who seems to have lost his way back to the North Pole!
0:03:29 > 0:03:33But, remove all this rubbish and you'd have three well-proportioned bedrooms.
0:03:33 > 0:03:36The front one is especially large.
0:03:36 > 0:03:40And to complete the tour, there's a good-sized bathroom at the back.
0:03:40 > 0:03:44Wandering around this place, I get really excited, cos you know
0:03:44 > 0:03:47you spend time and effort sorting it out and you'll transform it.
0:03:47 > 0:03:52The kitchen, for instance, is in a right old state, but it's a good-sized space
0:03:52 > 0:03:57and you could make it so lovely with just a bit of imagination, really.
0:03:57 > 0:04:03However, it's time to drop the bombshell, because, unfortunately, this place is leasehold.
0:04:03 > 0:04:05That's not necessarily a bad thing.
0:04:05 > 0:04:08The bad thing in this instance is that the lease is very short.
0:04:08 > 0:04:11It's only 56 years. Why's that a problem?
0:04:11 > 0:04:17If you're trying to get a mortgage, a mortgage company will not go for a lease that's that short.
0:04:17 > 0:04:21You can negotiate to have a lease extended, but you don't know it's going to happen.
0:04:21 > 0:04:25It's really important, therefore, that you've read the legal pack and are aware of that.
0:04:25 > 0:04:29Because if you went to the auction expecting to get a mortgage on this
0:04:29 > 0:04:33place and you needed one, you'd have been in trouble.
0:04:33 > 0:04:37It's one serious negative against some great positives here.
0:04:40 > 0:04:42Time to ask a local estate agent
0:04:42 > 0:04:45what he thinks of this three-bedroomed end-of-terrace.
0:04:47 > 0:04:52Clearly, it does need upgrading, but the property does have a lot of potential.
0:04:52 > 0:04:55I believe if someone does come in here, they will need
0:04:55 > 0:04:57to renovate the property throughout.
0:04:57 > 0:05:02Ideally, a new kitchen, bathroom, UPVC double glazing, also.
0:05:03 > 0:05:06It definitely needs some attention and a full makeover,
0:05:06 > 0:05:11but its location is key to making this a success.
0:05:11 > 0:05:14A popular location, close to the local amenities,
0:05:14 > 0:05:19close to the bus link, but also a stone's throw away from the city centre.
0:05:19 > 0:05:22Great if you're going to tap in to that lucrative student market.
0:05:22 > 0:05:26But what about the big problem facing any buyer?
0:05:26 > 0:05:30There is a short lease which could be a problem for the property for mortgage purposes.
0:05:30 > 0:05:35But I would recommend the vendor to purchase the freehold on completion.
0:05:35 > 0:05:42Once lease issues are resolved and the freehold purchased, how much could this house sell for?
0:05:42 > 0:05:48When renovated, I believe selling this property could be in the region of £170,000 to £180,000.
0:05:48 > 0:05:53And with an eye on the student market, how much could each room make in rent?
0:05:53 > 0:05:56I believe you could achieve £200 per room per calendar month.
0:06:00 > 0:06:03Clearly, this place is in a right old state.
0:06:03 > 0:06:06But, intrinsically, it is a great house.
0:06:06 > 0:06:11Good location and, of course, that £65,000 guide price, as well.
0:06:11 > 0:06:15I can see this really making money for somebody. But the big issue, of course,
0:06:15 > 0:06:21is the fact that it does have that short lease, which means you're going to have to buy this with cash.
0:06:21 > 0:06:23You're not going to be able to get a mortgage.
0:06:23 > 0:06:27If you're not aware of that, you are in big trouble. Let's find out what happened.
0:06:30 > 0:06:34Lot number 26 is 70 Mackintosh Place in Roath.
0:06:34 > 0:06:36Who's going to put it in? What shall we say?
0:06:36 > 0:06:41Bid me 70, if you like. 70, can I see, to start me?
0:06:41 > 0:06:44First 70, I'm bid, thank you, I've got in the room.
0:06:44 > 0:06:47At 70. 75, can I put you in? 72, then.
0:06:47 > 0:06:5072, I've got there. 4. 74.
0:06:50 > 0:06:54You're out right in the back, sir. 76, I can see, standing in the back.
0:06:54 > 0:06:58At 76. 8, on the side. At 78.
0:06:58 > 0:07:01Wave to me with that catalogue. 80, I'm bid.
0:07:01 > 0:07:03At 80,000. And again for you, sir.
0:07:03 > 0:07:0682. At 82,000.
0:07:06 > 0:07:104, will you? 84, I'm bid, in the back, standing in the back.
0:07:10 > 0:07:1286, can I, sir? At 84,
0:07:12 > 0:07:14I'm going to sell it, no mistake.
0:07:14 > 0:07:17At 84,000. 6, can I, anybody?
0:07:17 > 0:07:21Shout if I'm missing you. 6. 86.
0:07:21 > 0:07:23You're out now, sir. 88, standing in the back.
0:07:23 > 0:07:27Where's yours again? At 88, standing right in the back.
0:07:27 > 0:07:31At £88,000, are you all done?
0:07:31 > 0:07:35It's yours, sir. Thank you very much. At 88,000.
0:07:37 > 0:07:40This is Terry, but it wasn't him bidding at the auction.
0:07:40 > 0:07:42That was his brother, Jeff.
0:07:42 > 0:07:50Together, they run a successful property business and this is the latest addition to their long list.
0:07:50 > 0:07:51Terry, good to meet you.
0:07:51 > 0:07:54Congratulations. Why did you want to buy this house?
0:07:54 > 0:07:56Erm, basically, the investment.
0:07:56 > 0:07:59- And you think now is a good time to do it?- Yeah.
0:07:59 > 0:08:02What do you see about the market in the South Wales area?
0:08:02 > 0:08:07- How has it been and how is it now? - It's dropped by about 20%.
0:08:07 > 0:08:11- Has that affected you too much? - Not really. It's actually done me a favour.- How come?
0:08:11 > 0:08:14Because we've decided to buy more property.
0:08:14 > 0:08:18We've got a lot of property that we bought many years ago, which was
0:08:18 > 0:08:24obviously really cheap, and two or three years ago we stopped buying, because the market went so high.
0:08:24 > 0:08:27And now we've decided to start buying again.
0:08:27 > 0:08:33To be a successful developer, judging the right time to buy is crucial.
0:08:33 > 0:08:38So, Terry and his brother obviously believe this is the moment to invest in property again.
0:08:38 > 0:08:42Having sunk 88 grand into the house, they're confident about making
0:08:42 > 0:08:45a return on it, but they're going to have to spend a bit more.
0:08:45 > 0:08:49So, the state of the property doesn't bother you too much?
0:08:49 > 0:08:52- No, it's in pretty good order. - That's pretty good?- Yep.
0:08:53 > 0:08:55That's an experienced developer speaking, isn't it?
0:08:55 > 0:08:59There's a bit to do, but, really, it's not as much as you think.
0:08:59 > 0:09:01When you get going, it'll come together.
0:09:01 > 0:09:05When you first saw it, didn't the state of it put you off?
0:09:05 > 0:09:08No, I was quite surprised. I was very pleased.
0:09:08 > 0:09:11- Didn't you see it before?- No, it's the first day this morning.
0:09:11 > 0:09:13- So you didn't see it before you bought it?- No.
0:09:13 > 0:09:17- Why's that?- We actually went to auction looking at other properties.
0:09:17 > 0:09:20We didn't buy the others. They went too high.
0:09:20 > 0:09:24And we looked at this one in the catalogue and we thought, "We'll use that one as a reserve"
0:09:24 > 0:09:28and we thought this was going to go for 120, 130, 140.
0:09:28 > 0:09:30We would have went up to 120.
0:09:30 > 0:09:33- Wow!- Wouldn't go any more. - But you got it for 88.- Yes.
0:09:33 > 0:09:36It might turn out the better buy, perhaps.
0:09:36 > 0:09:40This one, yeah. We were just really surprised to buy it for that price.
0:09:40 > 0:09:43You can't buy many properties for 88,000 in Cardiff.
0:09:43 > 0:09:49For Terry and his brother Jeff, it looks like Santa has brought them a great early Christmas present.
0:09:49 > 0:09:51# I call it a bargain
0:09:51 > 0:09:54# The best I ever had... #
0:09:55 > 0:10:01Getting the house for £32,000 less than their top price just goes to show that if there isn't much
0:10:01 > 0:10:07action in the auction room, you could secure yourself a property below market value.
0:10:07 > 0:10:12# The best I ever had... #
0:10:12 > 0:10:17This is one of the concerns I had when I first saw this, the very short lease that's left.
0:10:17 > 0:10:2156-odd years. Does that bother you?
0:10:21 > 0:10:23Not at all.
0:10:23 > 0:10:25We've got somebody working on it at the moment.
0:10:25 > 0:10:32We'll try and purchase the lease, which I should imagine will be between 10,000 - 15,000.
0:10:32 > 0:10:35- Or we'll just apply for another 99-year lease.- Right.
0:10:35 > 0:10:39But somebody trying to get a mortgage on it would potentially have trouble?
0:10:39 > 0:10:42This was unmortgageable. We had to purchase it.
0:10:42 > 0:10:44Because of the lease issue?
0:10:44 > 0:10:46Because of the lease and its state.
0:10:46 > 0:10:47There was no mortgage available.
0:10:47 > 0:10:54So we purchased it ourselves and when it's finished, we'll then put in for the mortgage.
0:10:54 > 0:11:00With a university nearby, the brothers plan to turn the generous space here into bedsit heaven.
0:11:00 > 0:11:03Splitting the front bedroom into two small rooms
0:11:03 > 0:11:08and turning the bathroom into another bedsit will create five bedrooms upstairs.
0:11:08 > 0:11:11Putting the bathroom in the old utility space
0:11:11 > 0:11:16and making the kitchen a communal area will free up the living room as another bedsit.
0:11:16 > 0:11:21That would give them a seven-bedroom rental machine.
0:11:21 > 0:11:24It sounds like you've got this plan in place already.
0:11:24 > 0:11:26- You know exactly what you're going to do.- Yes.
0:11:26 > 0:11:29- When did that formulate? - This morning!
0:11:30 > 0:11:32I was going to say, you've only just seen it!
0:11:32 > 0:11:35I mean, you can tell after a while.
0:11:35 > 0:11:40I've done so many now, you just walk in and think to yourself, that's it, that's what I'm going to do.
0:11:40 > 0:11:47But with so many bedsits, this house will now be termed an HMO - a house of multiple occupancy.
0:11:47 > 0:11:50That will mean complying with a host of rules and regulations,
0:11:50 > 0:11:54such as installing fire doors and fire alarms.
0:11:54 > 0:11:57Give me an idea of the kind of money you can expect?
0:11:57 > 0:12:02- In between £50 and £60 per room, per week.- Talk me through the numbers.
0:12:02 > 0:12:05What are you going to spend and stuff like that?
0:12:05 > 0:12:06I looked at it this morning.
0:12:06 > 0:12:12Initially, I was thinking...25, but it doesn't really need that.
0:12:12 > 0:12:15It's going to be about 15 to 20. 20 maximum.
0:12:15 > 0:12:22Let me work this out - at seven letable rooms had £50 a week, that's £350 a week, £1,400 a month.
0:12:22 > 0:12:25- It's about £17,000 a year.- Yeah.
0:12:25 > 0:12:28- That's a good return. - A very good return, yeah.
0:12:28 > 0:12:29It's like a 14, 15% return.
0:12:29 > 0:12:31Yeah, that's very good.
0:12:31 > 0:12:34They should know what they're doing.
0:12:34 > 0:12:36These brothers own over 100 properties,
0:12:36 > 0:12:41their own building company - which will do the conversion - and their own letting agency.
0:12:41 > 0:12:47So, it seems this family business has all the necessary bases covered to make this a workable investment.
0:12:51 > 0:12:56Well, there you go. Terry obviously knowing exactly what he's doing.
0:12:56 > 0:12:58And if you've got any doubts that now's a good time
0:12:58 > 0:13:01to invest in property, listen to the professionals.
0:13:01 > 0:13:04He's going to get approximately a 15% yield on this place.
0:13:04 > 0:13:07Where can you get that at the moment? Certainly not at the banks!
0:13:07 > 0:13:10How is he going to get on? There's work to be done.
0:13:10 > 0:13:12Will it be as easy as he makes out?
0:13:12 > 0:13:14Find out later in the show.
0:13:18 > 0:13:23For the next property, I'm visiting an area near the River Itchen in Southampton.
0:13:23 > 0:13:27It's in the suburb of Bitterne and it's on Athelstone Road.
0:13:27 > 0:13:31Just off this busy main road is today's lot.
0:13:31 > 0:13:37It's a three-bedroom semi-detached house and the guide price - 130,000.
0:13:37 > 0:13:39Let's see if it's worth the money.
0:13:39 > 0:13:44The name of the road, Athelstone, derives from an old English word, meaning "noble stone".
0:13:44 > 0:13:49But from the front here, there's not much that lives up to that.
0:13:49 > 0:13:51There's moss on the roof tiles and wear and tear.
0:13:51 > 0:13:55So, it's not off to a spectacular start.
0:13:55 > 0:14:00Well, my first impression of this house once you walk in, is that it's really tired and dated.
0:14:00 > 0:14:04And you can see the previous owner has left a lot of possessions
0:14:04 > 0:14:07lying around, so it's quite hard to see some of the rooms.
0:14:07 > 0:14:11But what I do like about 1920s houses, is that you get
0:14:11 > 0:14:15big, big spaces. You've got two lovely reception rooms here.
0:14:15 > 0:14:19But I can detect Artex - everywhere! On all the ceilings.
0:14:19 > 0:14:22That's something I'd have to address.
0:14:22 > 0:14:25But at the back of the house, you've got a really nice, long galley kitchen -
0:14:25 > 0:14:27bit dated, you'll have to update.
0:14:27 > 0:14:30You've got enough room at the end to put a table and chairs.
0:14:30 > 0:14:35But what I'm really like about this room is that cracking little view over the River Itchen.
0:14:35 > 0:14:39That's the real selling point here - those views.
0:14:39 > 0:14:43People are prepared to pay a premium to look out over the river.
0:14:43 > 0:14:48But something buyers do not like paying for is problems - and there's a fair share of those here.
0:14:48 > 0:14:53There's the crack in the ceiling, for starters, and also signs of damp, throughout.
0:14:53 > 0:14:56Upstairs, we have got this really nice light landing area.
0:14:56 > 0:14:58That's down to this lovely, big, sunny window.
0:14:58 > 0:15:04The box room, again, with the fantastic view and two really good-sized doubles.
0:15:04 > 0:15:08The bathroom suite - avocado - it's got to go. Replace it with something white.
0:15:08 > 0:15:12And in this room, you've got a really nice-sized double bedroom.
0:15:12 > 0:15:16It would be lovely to see these stripes stripped and this room
0:15:16 > 0:15:19painted and something more contemporary and modern.
0:15:19 > 0:15:22These stripes aren't the only thing to go.
0:15:22 > 0:15:25The heating here is by old storage heaters and gas fires,
0:15:25 > 0:15:28so you'd have to consider installing new central heating.
0:15:28 > 0:15:31But the bones of this place are solid.
0:15:31 > 0:15:37Get past that dated decor, and you've got the makings of a well-configured family house.
0:15:37 > 0:15:39And we haven't gone outside yet!
0:15:39 > 0:15:43Here's the back garden. You may think it's really interesting,
0:15:43 > 0:15:46with all these little paths and winding walkways,
0:15:46 > 0:15:49but let's not forget, this is a family house
0:15:49 > 0:15:52and this garden could be a very difficult space for kids to play in.
0:15:52 > 0:15:57Next door have taken all the flat land by the looks of things.
0:15:57 > 0:16:00To get this levelled out would be a very expensive job.
0:16:00 > 0:16:02But in my opinion, worth thinking about.
0:16:02 > 0:16:05What really sets this garden off, though, is that view.
0:16:05 > 0:16:09But just to let you know, folks, it's a winter view only.
0:16:09 > 0:16:13In the summer, the leaves will be back and the view will be gone.
0:16:13 > 0:16:17This must be one of the few properties I've visited on the show
0:16:17 > 0:16:20that has me longing for the cool days of winter! Back to the house...
0:16:20 > 0:16:24The back looks very much like the front, everything needs some work.
0:16:24 > 0:16:29And though that rendering isn't easy on the eye, it is, at least, low-maintenance.
0:16:31 > 0:16:34I asked a local estate agent to come to the house and tell
0:16:34 > 0:16:36me more about the potential
0:16:36 > 0:16:38for properties like this around here.
0:16:40 > 0:16:42People pay a premium to live in Bitterne,
0:16:42 > 0:16:44cos it's a nice family area.
0:16:44 > 0:16:46Predominantly made up of older properties.
0:16:46 > 0:16:51There's also good travel networks into the city and on to such motorways as the M3 and M27.
0:16:51 > 0:16:54So, the area seems to have something going for it.
0:16:54 > 0:16:56But is the house equally appealing?
0:16:56 > 0:16:59And what's needed to maximise its potential?
0:16:59 > 0:17:04My first impressions of the property, lovely older style of house.
0:17:04 > 0:17:07Good-sized bedrooms. Does need a little bit of upgrading.
0:17:07 > 0:17:09Generally, it's a little bit tired.
0:17:09 > 0:17:17The house was guided at 130,000, but how much could it be marketed for once refurbished?
0:17:17 > 0:17:21These houses, once renovated, are worth approximately £185,000.
0:17:21 > 0:17:23A potential profit, then.
0:17:23 > 0:17:26How much could it achieve in rental?
0:17:26 > 0:17:30I think you'd look to rent this out around £700 per calendar month.
0:17:34 > 0:17:38This little 1920s house is in good order.
0:17:38 > 0:17:41It does require work and it needs a new kitchen and bathroom,
0:17:41 > 0:17:45but it's in a desirable area, with great views from the garden.
0:17:45 > 0:17:49And the guide is realistically set at 130,000.
0:17:49 > 0:17:52Let's see who went for this property as we go to auction.
0:17:56 > 0:17:58Number 21 in your catalogue.
0:17:58 > 0:18:00Somebody prepared to start
0:18:00 > 0:18:02at just 110,000?
0:18:02 > 0:18:04You do, sir. 110, we have.
0:18:04 > 0:18:08112, here in the front. 112,000.
0:18:08 > 0:18:10114's bid in the back.
0:18:10 > 0:18:14116? 116, here in the front.
0:18:14 > 0:18:15118, we have got.
0:18:15 > 0:18:17120, in the front.
0:18:17 > 0:18:23122? No? I'll do a one now if that's going to help you. 121, we have got.
0:18:23 > 0:18:25Fresh bid, at 122.
0:18:25 > 0:18:27123?
0:18:27 > 0:18:30123. 124?
0:18:30 > 0:18:33124,000. It's against you now.
0:18:33 > 0:18:34125 is what I need.
0:18:34 > 0:18:39No, back in at 125. 126, thank you, sir.
0:18:39 > 0:18:41127? No, you're out?
0:18:41 > 0:18:45£126,000, then, with you, sir.
0:18:45 > 0:18:49126,000. 127.
0:18:49 > 0:18:51Now we're talking. 127.
0:18:51 > 0:18:53The gentleman's back, at 128.
0:18:53 > 0:18:55128.
0:18:55 > 0:18:57129? 129.
0:18:57 > 0:19:02Gentleman's back in at 130. He looks committed! 131.
0:19:02 > 0:19:04No? You're out. You sure?
0:19:04 > 0:19:07They're out, sir. It's with you at 130.
0:19:07 > 0:19:10I have 130,000 on Athelstone Road, then, for the first.
0:19:10 > 0:19:13I have 130,000, for the second.
0:19:13 > 0:19:17I have £130,000, for the third and final time.
0:19:18 > 0:19:21Your property, well done. Your number please, sir?
0:19:24 > 0:19:31After that battle in the auction room, it was retired couple, Roger and Lindsey, who emerged victorious.
0:19:31 > 0:19:36They got this property for spot on the guide price of £130,000.
0:19:36 > 0:19:39- Roger and Lindsey, congratulations! - Thank you.- You pulled it off.
0:19:39 > 0:19:42- We did. - You got it for the guide price?
0:19:42 > 0:19:44- We did.- Well done!- Very lucky, yeah.
0:19:44 > 0:19:47- So was that the first auction you've ever been to?- No.
0:19:47 > 0:19:50We've been to about five or six?
0:19:50 > 0:19:53- Yes.- Over the last year.
0:19:53 > 0:19:56So how much would you have gone up to? I love asking!
0:19:56 > 0:20:00You may not believe this, but I was stopping on 130. I wasn't going further.
0:20:00 > 0:20:02You got it bang on the guide price.
0:20:02 > 0:20:06On the nail, yes. That's where I had decided to stop.
0:20:06 > 0:20:08The other two people backed out, so that was it.
0:20:08 > 0:20:10That was the crunch, 130.
0:20:10 > 0:20:13So Roger, why was this the right house?
0:20:13 > 0:20:17Because our son lives about three streets away.
0:20:17 > 0:20:20And is just about to have some work done on his house,
0:20:20 > 0:20:23which means he's going to have a lot of demolition done.
0:20:23 > 0:20:28So we thought it would be a good idea if they move into here while the builders are in.
0:20:28 > 0:20:33My son has got asthma and, of course, little children, as well.
0:20:33 > 0:20:36The youngest grandson, he's 18 months.
0:20:36 > 0:20:39And they've a four-year-old and a seven-year-old.
0:20:39 > 0:20:46And, quite honestly, three children, his wife's very good, but I'm sure she'll be glad to get out.
0:20:46 > 0:20:50Building works can be very messy affairs, so Roger and Lindsey are
0:20:50 > 0:20:54definitely providing their son and his family with a great alternative.
0:20:54 > 0:20:58But there's another personal reason for buying this house.
0:20:58 > 0:21:02Were you looking for property for them? Or it just fell into place?
0:21:02 > 0:21:03Just happened to fall into place.
0:21:03 > 0:21:07I really wanted to have a go at doing a property myself.
0:21:07 > 0:21:12I'd done my own house up a few years ago and I thought, when I retire, it will keep me out of mischief!
0:21:14 > 0:21:17- Now Lindsey, do you agree with that? - Yes!
0:21:17 > 0:21:19She'll be like, "Go on then, off to work! Off you go!"
0:21:19 > 0:21:22Yes, "Out my way!"
0:21:22 > 0:21:24Is this something Roger's wanted to do?
0:21:24 > 0:21:30He has. Since he's retired last year, he's always said he'd like to do something in property.
0:21:30 > 0:21:32And DIY, he's very good at.
0:21:32 > 0:21:34So, this is ideal.
0:21:34 > 0:21:36Keep him out of mischief!
0:21:36 > 0:21:39- You're raring to go, aren't you? - Absolutely. Toolbox is ready!
0:21:39 > 0:21:44# I spent a lifetime
0:21:44 > 0:21:46# Waiting for the right time... #
0:21:46 > 0:21:50Well, it's time for all the talking to stop and for Roger to prove himself.
0:21:50 > 0:21:54This house certainly provides plenty to test his DIY skills.
0:21:54 > 0:21:57# It's now or never... #
0:21:57 > 0:22:00The couple plan to install a new central heating system,
0:22:00 > 0:22:05replace the double-glazing and put in an updated kitchen and bathroom.
0:22:05 > 0:22:11As for those cracks, a survey has revealed no subsidence here, so no structural changes are planned.
0:22:11 > 0:22:15But there's still a fair amount to do and the couple have given
0:22:15 > 0:22:19themselves a comfortable 30 grand renovation budget.
0:22:19 > 0:22:21Are you going to get involved, Lindsey?
0:22:21 > 0:22:26I shall be helping, probably labouring a little bit, and doing the gardening.
0:22:26 > 0:22:30And just supervising, now and again, probably.
0:22:30 > 0:22:34- You've made that clear, have you? - I've made that clear, yes!
0:22:34 > 0:22:39Though looking at the state of this garden, I think Lindsey may have drawn the short straw here!
0:22:39 > 0:22:45Their son's family plan to move in, but it's got some way to go before being child-friendly.
0:22:45 > 0:22:47And the slope rather restricts their options.
0:22:47 > 0:22:52I don't think we'll be doing too much to it, but generally give it a tidy up
0:22:52 > 0:22:57and there's an old air raid shelter, which to be honest, I didn't know was there when I bought the house!
0:22:57 > 0:23:03- Oh wow!- I had a survey done, and they said, "What are you going to do with the air raid shelter?" Oh!
0:23:03 > 0:23:05"What air raid shelter?"!
0:23:05 > 0:23:12That's right down at the bottom of the garden, so maybe it'll be safer to get that demolished or filled in.
0:23:12 > 0:23:17It seems that Roger's going to do what the Luftwaffe couldn't - demolish the shelter.
0:23:17 > 0:23:23But as for the rest of the house, well, Roger and Lindsey hope to have it ready in three months.
0:23:23 > 0:23:27Though I reckon they might get a bit distracted by looking out the back window!
0:23:27 > 0:23:30What about that view? What about that winter view?!
0:23:30 > 0:23:33- Fantastic. Well, I'm a sailor, myself.- Are you?
0:23:33 > 0:23:37Looking at that view, which wasn't there when we came to look a couple of months ago.
0:23:37 > 0:23:42A lot of leaves have fallen off since then, so we've got an even better view now.
0:23:42 > 0:23:45- I think that's an added bonus to this house.- That's right.
0:23:45 > 0:23:49And this morning, up with the blue sky and the yachts moored out there, it's really lovely.
0:23:49 > 0:23:53And you know it's not going to be built on behind, that's one good thing.
0:23:59 > 0:24:01What a fantastic story.
0:24:01 > 0:24:03What a lovely couple.
0:24:03 > 0:24:06Roger and Lindsey have their first project and helped their son,
0:24:06 > 0:24:11daughter-in-law and grandchildren out with a temporary new home.
0:24:11 > 0:24:15You can find out how all this pans out later on in the programme.
0:24:17 > 0:24:21Coming up - there are a lot of good things in this one-bedroom flat in London.
0:24:21 > 0:24:25But the biggest thing in this property is these two great sash windows.
0:24:27 > 0:24:34Back in Southampton, has Roger's renovation been going strong or has it made him go weak at the knees?
0:24:34 > 0:24:37In December, I had a total knee replacement.
0:24:38 > 0:24:46But first, in Cardiff, has this run-down three-bedroomed house become a lean, mean, rental machine?
0:24:50 > 0:24:52We return to Roath in Cardiff now.
0:24:52 > 0:24:58Seasoned developer Terry bought this spacious three-bedroom end-of-terrace for 88,000.
0:24:58 > 0:25:04He and his brother Geoff have a portfolio of over 100 properties and this was their latest addition.
0:25:04 > 0:25:09The plan was to convert it into several bedsits. And the cost?
0:25:09 > 0:25:13Initially, I was thinking...25.
0:25:13 > 0:25:15But it doesn't really need that.
0:25:15 > 0:25:18It's going to be about 15 to 20. 20 maximum.
0:25:18 > 0:25:21With all their experience, that could be possible.
0:25:21 > 0:25:25But there was a lot of work to be done to make this place a rental heaven.
0:25:25 > 0:25:28Four months later, we returned to see if they'd
0:25:28 > 0:25:32created another impressive addition to their portfolio.
0:25:34 > 0:25:37Well, from the outside, not a lot has changed,
0:25:37 > 0:25:40apart from a fresh lick of paint.
0:25:40 > 0:25:41But, head inside...
0:25:43 > 0:25:46The clutter has now vanished from that large front room
0:25:46 > 0:25:50and it's been transformed into a light, airy space.
0:25:51 > 0:25:53And at the back of the house?
0:25:55 > 0:25:59Well, a proposed communal area definitely looks more inviting.
0:25:59 > 0:26:05It seems that, so far, Geoff and Terry have cooked up a good little renovation here.
0:26:05 > 0:26:08From start to finish, we've completely changed the whole house.
0:26:08 > 0:26:14From kitchen to bathrooms, to bedrooms and downstairs, everything's had a complete change.
0:26:14 > 0:26:19And when Terry says "downstairs", he does mean downstairs.
0:26:19 > 0:26:23The cellar has now been converted into a spacious communal area.
0:26:23 > 0:26:25So what about upstairs?
0:26:25 > 0:26:31One of the major changes in the kitchen, we took the chimney stack completely out, down to floor level.
0:26:31 > 0:26:36This enabled us to extend the kitchen and create a bathroom downstairs.
0:26:38 > 0:26:44And the bathroom upstairs? Well, as planned, that is now a good-sized bedroom.
0:26:44 > 0:26:50But up front, with the help of a partition wall, that large room has become two smaller rooms.
0:26:51 > 0:26:56Everything's in good decorative order, though some might think it a bit too snug.
0:26:59 > 0:27:04Reconfiguring that middle bedroom has created space for a shower room on the landing.
0:27:04 > 0:27:05So far, pretty impressive.
0:27:05 > 0:27:11But getting it done on time was down to brother Geoff's project managing skills.
0:27:13 > 0:27:18I'm just amazed how we got it finished in that 12 weeks.
0:27:18 > 0:27:22He said it would be 12 weeks. I thought it would be four or five months.
0:27:22 > 0:27:24And we got it finished exactly on time.
0:27:24 > 0:27:27Actually, two days before we were meant to finish.
0:27:27 > 0:27:31Here and there are signs that the plaster's still drying out,
0:27:31 > 0:27:34but that's a minor quibble in a transformation that,
0:27:34 > 0:27:38given the short time spent on it, is really impressive.
0:27:38 > 0:27:41But Terry's contribution to this project is also important.
0:27:41 > 0:27:45My job was just basically designing and making sure that
0:27:45 > 0:27:49the kitchen goes in the right place, the bathroom goes in the right place.
0:27:49 > 0:27:52Once that's done, the builders come in. We just make a plan,
0:27:52 > 0:27:55"That's what's to be done." I just come from time to time to check it's being done.
0:27:55 > 0:27:58With over 100 properties on their books,
0:27:58 > 0:28:02the experience of reconfiguring the layout has proved invaluable.
0:28:02 > 0:28:08Creating a clean, low-maintenance environment will also mean low overheads in the future.
0:28:14 > 0:28:19One of the things I've learnt with student lets is easy maintenance.
0:28:19 > 0:28:24As you can see, we've taken all the grass, we've taken the shed from the back.
0:28:24 > 0:28:27So there is completely no maintenance.
0:28:27 > 0:28:33With seven bedrooms, this property will now be termed a House of Multiple Occupancy, an HMO.
0:28:33 > 0:28:35Fire doors and fire alarms have been installed
0:28:35 > 0:28:39and there are enough bathrooms and toilets to satisfy requirements.
0:28:39 > 0:28:42The only snag is that the kitchen will need another sink.
0:28:42 > 0:28:46Not a big problem, but with all this work, how did the budget cope?
0:28:49 > 0:28:51We gave it a budget of 25,000.
0:28:51 > 0:28:56We then decided to take out the chimney breast, the stack, from ceiling to floor.
0:28:56 > 0:28:59And we decided to tank the cellar.
0:28:59 > 0:29:01That wasn't in the budget.
0:29:01 > 0:29:06But other things went better than we thought, so we still came in
0:29:06 > 0:29:09on budget, slightly over by, perhaps, a few hundred pounds.
0:29:09 > 0:29:13Still, pretty good going at this level of renovation.
0:29:13 > 0:29:17They also incurred another expense - but one they wanted.
0:29:17 > 0:29:23We've recently bought the freehold for 4,700,
0:29:23 > 0:29:26which, I think, is absolutely fantastic.
0:29:26 > 0:29:32Getting the freehold at such a great price has immediately increased the value of the property.
0:29:32 > 0:29:35Add that to their renovation costs of 25,000,
0:29:35 > 0:29:42plus the house price of 88,000, that takes their total spend to 118 grand.
0:29:45 > 0:29:47Time now to ask two local estate agents
0:29:47 > 0:29:49what they think of the brothers' renovation.
0:29:51 > 0:29:54My impressions are very good.
0:29:54 > 0:29:57I'm impressed with the way he's actually improved the property.
0:29:57 > 0:30:00He's obviously spent a considerable amount.
0:30:00 > 0:30:04I think the property has been renovated to an average standard.
0:30:04 > 0:30:08It's neutral throughout, so it can suit all types of people.
0:30:08 > 0:30:12They have done a considerable amount of work to the property in a short period of time.
0:30:12 > 0:30:15It's very presentable and will sell or let very quickly.
0:30:15 > 0:30:19Although the brothers have designed this as a seven-room bedsit,
0:30:19 > 0:30:23the agents feel that the front room should be a communal area.
0:30:23 > 0:30:27This would make it a six-bed house, so what would the rental return on that be?
0:30:27 > 0:30:31I would be looking at renting each of the rooms at 250 per calendar month.
0:30:31 > 0:30:36You would probably be looking at £250 a room, so six rooms, £1,500 a month.
0:30:36 > 0:30:40They're pretty close. We've actually just rented it for 1,600, per calendar month.
0:30:40 > 0:30:48It was on the market for one day and the first viewers came and we've just signed them for one year.
0:30:48 > 0:30:54That would give the brothers a whopping 16% yield, even if it was just a six-bed.
0:30:54 > 0:31:01Remember, their total outlay on the house was just under 118,000, so what could it achieve on resale?
0:31:01 > 0:31:07I'd expect to market the property at 225,000, with any offers over 200 being considered.
0:31:07 > 0:31:11I would expect to achieve 215,000 for this property.
0:31:11 > 0:31:17I expected it around the 200, but, you know, 200, 215 is, literally, fantastic.
0:31:17 > 0:31:24That would give the boys a potentially impressive pre-tax profit of just under £100,000.
0:31:24 > 0:31:28So this rental machine will soon be earning its keep.
0:31:41 > 0:31:47This is Maida Vale in West London, just north of Paddington.
0:31:47 > 0:31:49It really is a delightful spot.
0:31:49 > 0:31:52The poet Browning actually had a house overlooking the pool
0:31:52 > 0:31:55where the Grand Union and Regent's Canal meet here.
0:31:55 > 0:31:59He was so inspired by the area he named it Little Venice.
0:31:59 > 0:32:05Well, it's lost none of its charm and it really is an oasis in the centre of London.
0:32:05 > 0:32:08This isn't an area with a chequered history.
0:32:08 > 0:32:13It always was, and still is, a hugely-desirable place to live,
0:32:13 > 0:32:16with grand mansions sitting alongside narrowboats.
0:32:16 > 0:32:19It's a perfect hidden idyll.
0:32:21 > 0:32:26And with a good selection of atmospheric old-fashioned pubs, what's not to like?
0:32:27 > 0:32:31Well, just steps away from the Tube station of the same name,
0:32:31 > 0:32:36you have Warwick Avenue, made famous most recently by the Welsh songstress, Duffy.
0:32:36 > 0:32:41And, of course, the street is well deserved of a song of its own.
0:32:41 > 0:32:44It's beautiful. Just look around. So what am I here to see?
0:32:44 > 0:32:51Well, it's a one-bedroomed first-floor flat at a very appealing guide price of 165,000.
0:32:51 > 0:32:56# When I get to Warwick Avenue... #
0:32:56 > 0:33:02These attractive, early-Victorian terraces are typical of the area. Believe me, by London standards,
0:33:02 > 0:33:08165 grand is a snip, compared with what you'd normally pay for this location.
0:33:08 > 0:33:12So, not a bad little entrance foyer there,
0:33:12 > 0:33:16but then straight into the flat and you're faced with...the loo.
0:33:16 > 0:33:21Quite unusual for a one-bedroomed flat to have a separate loo but it does take up a lot of space,
0:33:21 > 0:33:24probably at the expense of other parts of the flat.
0:33:24 > 0:33:26We'll explore that in a sec.
0:33:26 > 0:33:29Into what, I suppose, is your living room.
0:33:29 > 0:33:33It's got a gas fire, probably need upgrading, but you could make a centrepoint.
0:33:33 > 0:33:37Reasonably high ceilings and then I like the way it's been divided off.
0:33:37 > 0:33:39This is actually your kitchen.
0:33:39 > 0:33:43It's in a right old state, clearly in need of total refurbishment.
0:33:43 > 0:33:45You may take down this wall, make it open-plan.
0:33:45 > 0:33:50But the biggest thing in this property is these two great sash windows.
0:33:50 > 0:33:53Loads of light pouring in and it gets better than that.
0:33:55 > 0:34:01Because out here, you've got use of this absolutely delightful little private terrace.
0:34:02 > 0:34:04This is rather special.
0:34:04 > 0:34:07With its original iron railings and enough space for a chair or two,
0:34:07 > 0:34:13it's perfect for people-watching and taking in the afternoon sun.
0:34:13 > 0:34:15Slightly less perfect is the bedroom.
0:34:15 > 0:34:22It's a reasonable size and has its own sash window, which is good, but it's an odd raised area which
0:34:22 > 0:34:26makes me think maybe the plumbing has been laid clumsily underneath.
0:34:26 > 0:34:30And I was right. That separate loo does eat into the space.
0:34:30 > 0:34:36So this is the bathroom and actually, good news, because there's a lot of wasted space.
0:34:36 > 0:34:38You've got this cupboard here.
0:34:38 > 0:34:41There's another there, housing the hot water cylinder.
0:34:41 > 0:34:44If you stick a new combination boiler in, you can get rid of that,
0:34:44 > 0:34:49create lots of the extra space, move your loo from the centre of the property in here -
0:34:49 > 0:34:53it's on an external wall, so you shouldn't have problems with the soil pipe -
0:34:53 > 0:34:56and then you're going to generate yourself a heck of a lot more space.
0:34:56 > 0:34:58Absolutely perfect.
0:34:58 > 0:35:00So, we're back to perfect again.
0:35:00 > 0:35:06But there's still a lot to do here, most of it about getting this space to work for you.
0:35:08 > 0:35:11I asked a local estate agent along to tell me about
0:35:11 > 0:35:15the potential of this one-bedroom flat in Warwick Avenue.
0:35:15 > 0:35:20It's not the biggest flat in the world, but I think with the right eye
0:35:20 > 0:35:23and a good builder, it could be a very nice little one-bed.
0:35:23 > 0:35:27You don't want to overspend on this type of property, because it's not a
0:35:27 > 0:35:32big flat and you don't really want to be putting a Porsche engine inside a Ford Mondeo.
0:35:32 > 0:35:37I'd be looking to spend around 25, I think you could be quite a good job with 25,000.
0:35:37 > 0:35:44But still, on top of that £165,000 guide price, the flat would still represent a good buy.
0:35:44 > 0:35:47What could be achieved on the open market?
0:35:47 > 0:35:51In its current state, I'd value the property at 275,000.
0:35:51 > 0:35:56Once the work is done I'd expect to achieve 330,000 on the open market.
0:35:56 > 0:36:03As a letting valuation, you'd probably be looking at anywhere from £320 to £340 a week.
0:36:09 > 0:36:11Make no mistake, this is a hot property.
0:36:11 > 0:36:15That guide price, I think, set deliberately low, just to attract attention.
0:36:15 > 0:36:18But who couldn't be touched by the appeal of the area?
0:36:18 > 0:36:20The flat itself needs a bit of work,
0:36:20 > 0:36:23but I'm sure it's one that sailed away at the auction.
0:36:26 > 0:36:30Lot 10, Warwick Avenue. Over to you. I think I've got a low reserve.
0:36:30 > 0:36:37Is somebody going to start off punchy? 215. 220.
0:36:37 > 0:36:40225. 230?
0:36:41 > 0:36:43250.
0:36:43 > 0:36:45A great bid, well done.
0:36:45 > 0:36:47Lay it down. 251.
0:36:47 > 0:36:51It's not going to make any odds, is it? 252. Good bid, though.
0:36:51 > 0:36:56251 down here. 252, anywhere? 252.
0:36:56 > 0:36:59253. 253. 254.
0:36:59 > 0:37:04Anyone else? 253, anywhere else? It's going down here.
0:37:04 > 0:37:07Are you together? Blimey.
0:37:07 > 0:37:14In all this room, everyone there and you are together.
0:37:14 > 0:37:17How much? 254. 255.
0:37:17 > 0:37:22256. 257. 258.
0:37:22 > 0:37:25257, 258. Anywhere?
0:37:25 > 0:37:29257, with you. First time, 258. 259.
0:37:30 > 0:37:33259, down here. 260.
0:37:33 > 0:37:36260, well done. 261, sir?
0:37:36 > 0:37:38260, anyone else, down here?
0:37:38 > 0:37:43First time. 261. 262, madam.
0:37:43 > 0:37:50261, with you, first time, second time, 262.
0:37:50 > 0:37:55263? 262, in the front, first time,
0:37:55 > 0:38:00second time, third and last time, are you all done? 264.
0:38:00 > 0:38:03265. 266.
0:38:03 > 0:38:08265, in front, first time, second time, third and last time, 266.
0:38:08 > 0:38:11266, with you now. 267?
0:38:11 > 0:38:14Yeah? 267. 268?
0:38:14 > 0:38:20With the lady, 267, first time, second time, third and last time...
0:38:20 > 0:38:24Well done, 267. Well bought.
0:38:24 > 0:38:28The winning bidder of that hard-fought battle was Paula.
0:38:28 > 0:38:34She's a first-time buyer, who had her heart set on this one-bed in Warwick Avenue.
0:38:34 > 0:38:40Originally from Romania, Paula has lived in London for four years since finishing her Master's degree.
0:38:40 > 0:38:45She now calls the city home, but I wanted to know why she chose this flat.
0:38:45 > 0:38:48- Paula, congratulations. - Thank you very much.
0:38:48 > 0:38:50You've got a gorgeous flat in a lovely location.
0:38:50 > 0:38:54- It's fantastic, indeed.- Why did you decide to buy at auction?
0:38:54 > 0:39:00I started looking exactly a year ago and I remember having a wander
0:39:00 > 0:39:04in Little Venice and I decided, this is where I want to live.
0:39:06 > 0:39:11I found it very frustrating to deal with estate agents and not be able
0:39:11 > 0:39:17to negotiate with the sellers, so I thought I'd try the auction.
0:39:17 > 0:39:20How did it turn out? Because it seemed a bit frantic
0:39:20 > 0:39:23and the price just went up and up and up and up and up.
0:39:23 > 0:39:28I hadn't been to an auction before, so I had, literally, ten minutes to learn how it works.
0:39:30 > 0:39:33So I got in and there was this massive room,
0:39:33 > 0:39:39with hundreds of people and I felt very small and very nervous
0:39:39 > 0:39:43and then it was Lot 10 and everything goes really quickly,
0:39:43 > 0:39:47so I had, literally, five, ten minutes to figure out,
0:39:47 > 0:39:51"Oh yes, I have to raise my hand and I have to shout my price and
0:39:51 > 0:39:55"he has a gavel and he bangs it three times before that's it, all is gone."
0:39:55 > 0:39:58You didn't even know that before you went there?
0:39:58 > 0:40:00No.
0:40:01 > 0:40:05But it was a lot of work I did prior the auction.
0:40:05 > 0:40:08I did my homework before.
0:40:09 > 0:40:14Paula may be inexperienced at auctions, but feels she paid the right price for this property.
0:40:14 > 0:40:20For her, this is not just a way of making a fast buck, but somewhere to make her home.
0:40:20 > 0:40:24The location suits her as it's only a 12-minute journey to her work.
0:40:24 > 0:40:29She's in procurement for the Royal Mail, buying anything from planes, trains to automobiles.
0:40:29 > 0:40:34Is she going to sort this place out special delivery or second-class snail mail?
0:40:34 > 0:40:37There's nothing special about it.
0:40:37 > 0:40:39I think it has potential.
0:40:39 > 0:40:43- There's a lot of work to be done, but we'll see.- What are you going to do?
0:40:43 > 0:40:46Loads of things. Shall we start with the bathroom?
0:40:49 > 0:40:53I have a budget and the plan for the bathroom only.
0:40:53 > 0:40:58It'll have the feel and the look of a spa.
0:40:58 > 0:41:03I'll have small luxuries, like underfloor heating and a spa bath
0:41:03 > 0:41:08- and...ceiling speakers.- Wow.
0:41:08 > 0:41:10Do you spend a lot of time in the bathroom?
0:41:10 > 0:41:14I think it adds value to a property.
0:41:14 > 0:41:21With the bargains you can get today for tiles and bathtubs,
0:41:21 > 0:41:23it's a pity not to do it, really.
0:41:23 > 0:41:30Paula also recognises that reconfiguring the layout would make this place more desirable.
0:41:30 > 0:41:36So her plans are to move the toilet into the bathroom, create a walk-in wardrobe in the old toilet area
0:41:36 > 0:41:41and take out that dividing wall, to create an open-plan kitchen-living area.
0:41:41 > 0:41:44In terms of the work inside, have you had quotes for that?
0:41:44 > 0:41:49Yes. The most expensive was £29,000.
0:41:49 > 0:41:51- To do what?- To do the whole place.
0:41:51 > 0:41:57What I decided in the end was to do it in chunks, so I'll start
0:41:57 > 0:42:03with the bathroom and then move into the bedroom and to the living room.
0:42:03 > 0:42:07I envisage to spend about £15,000 in total.
0:42:07 > 0:42:11Paula seems to have got her teeth into this particular project
0:42:11 > 0:42:15and hopes to raise this place from the dead in six weeks.
0:42:16 > 0:42:19Do you bring any of the skills from your job into the purchase?
0:42:19 > 0:42:21Oh, absolutely.
0:42:21 > 0:42:27I'll have a contract with the builders, a service agreement and...
0:42:27 > 0:42:29Great. More people should do that.
0:42:29 > 0:42:34Write it down, what they've said to you, what they have agreed to do, how much they'll charge.
0:42:34 > 0:42:38Yes, I have everything in writing and if they
0:42:38 > 0:42:44give me a quotation I'll ask them to break it down and include all
0:42:44 > 0:42:48- materials they're going to use, where they're going to source them...- Ha!
0:42:48 > 0:42:52..quantity, all of those things.
0:42:52 > 0:42:57This is exactly what budding developers should do so, they aren't hit by unexpected extra charges.
0:42:57 > 0:43:02It seems that Paula is a tough cookie, who won't get bamboozled by any dodgy builders.
0:43:02 > 0:43:05But there is another way to save even more.
0:43:05 > 0:43:07DIY? Any experience of that?
0:43:07 > 0:43:09Have you done up properties before?
0:43:09 > 0:43:11No way.
0:43:11 > 0:43:15- Are you going to be getting your hands dirty?- No way.
0:43:15 > 0:43:18You're just going to oversee, tell people what to do?
0:43:18 > 0:43:21Not even, I'll call my mum in.
0:43:21 > 0:43:23- Your mum in?- My mother.
0:43:23 > 0:43:27All the builders would be really scared of her.
0:43:27 > 0:43:30I trust her with my life.
0:43:30 > 0:43:34She'll come over and will manage the project.
0:43:34 > 0:43:38Well, good luck with it all and I hope it turns out just as you want.
0:43:43 > 0:43:47Quite an experience for Paula's first venture at the auctions.
0:43:47 > 0:43:50And yes, she paid well over the guide price, but I think
0:43:50 > 0:43:54she's got herself a lovely home here and that's all that really matters.
0:43:54 > 0:43:57With her organisational skills and the help of her mum,
0:43:57 > 0:44:02I'm sure she'll do a great job at making sure she gets a good job done by those builders!
0:44:02 > 0:44:05Find out how she gets on later in the show.
0:44:08 > 0:44:11In the property world, time is money.
0:44:11 > 0:44:15If you want to make profits, you've got to work quickly and get the job done.
0:44:15 > 0:44:18Have our owners finished their projects, or is time their enemy?
0:44:18 > 0:44:20Let's go back and find out.
0:44:22 > 0:44:25Earlier, we met retired couple, Roger and Lindsey, who bought this
0:44:25 > 0:44:30run-down three-bed semi in Bitterne, Southampton for £130,000.
0:44:30 > 0:44:36They were planning to renovate and use it as a temporary home for their son and his family.
0:44:36 > 0:44:42But for Roger, there was also a chance to pursue his dreams of refurbishing a property.
0:44:42 > 0:44:49Seven months later, we return to see if it's now a dream home or a nightmare on Athelstone Road.
0:44:56 > 0:44:59The house still looks like it's in a deep sleep.
0:44:59 > 0:45:04There's no sign of curb appeal yet and when you head inside,
0:45:04 > 0:45:08again, there's no evidence of any renovation work taking place.
0:45:08 > 0:45:12But as Roger explains, there has been an unavoidable delay.
0:45:15 > 0:45:17In December, I had a total knee replacement,
0:45:17 > 0:45:22so I've been a few months getting back to strength.
0:45:22 > 0:45:28It was twofold, really. My son has used the house to store
0:45:28 > 0:45:33furniture and goods etc while he's had his house renovated.
0:45:33 > 0:45:37As he was able to work around the builders, Roger and Lindsey's son
0:45:37 > 0:45:43had decided not to move in, taking the pressure off Roger getting the renovation done.
0:45:43 > 0:45:45That gave him time for his knee to heal
0:45:45 > 0:45:49and also provided an opportunity to think about the layout.
0:45:50 > 0:45:54Out here, once I've got the new roof on and the double glazing,
0:45:54 > 0:45:59we're going to knock the extension down here and build a new extension right across the back
0:45:59 > 0:46:03and open up with a nice, big kitchen living room, really.
0:46:03 > 0:46:06It should all fit in very nicely and I've talked to the neighbours
0:46:06 > 0:46:12and, apparently, they're going to extend across the back, as well, so it'll all conform quite nicely
0:46:12 > 0:46:15and the whole thing should look really good.
0:46:15 > 0:46:18Once this garden has had its makeover, the new extension
0:46:18 > 0:46:23will definitely provide a great place to sit, relax and take in views of the River Itchen.
0:46:23 > 0:46:26Remember, winter only, though!
0:46:27 > 0:46:30Inside, there's another welcome addition for downstairs.
0:46:30 > 0:46:36One of the main considerations that I've got here is to put a downstairs toilet in.
0:46:36 > 0:46:43This was just a cloakroom previously, with a meter cupboard, so I've just plonked a toilet and
0:46:43 > 0:46:48sink in at the moment, just to see how it fits in, and, yeah, I think I'll have plenty of room for that.
0:46:48 > 0:46:50It should be good.
0:46:52 > 0:46:57Roger didn't see the renovation budget extending beyond his original £30,000 estimate.
0:46:57 > 0:47:03That would take the total bill to 160,000, plus the usual expenses.
0:47:03 > 0:47:10Even though seven months have passed since buying the house, he's still relaxed about getting the job done.
0:47:10 > 0:47:15I'm in the position really where there's no real big hurry.
0:47:15 > 0:47:18The fact that property prices have not moved, there's a lot
0:47:18 > 0:47:24of properties out there to let, so I'm happy, really, just to wait for the property prices to rise.
0:47:26 > 0:47:30But will the agents think it's time lost on the investment?
0:47:30 > 0:47:31Remember, Roger and Lindsey
0:47:31 > 0:47:34bought the house for 130,000 seven months ago.
0:47:35 > 0:47:39So has the value of this three-bed semi changed in that time?
0:47:40 > 0:47:44At this stage I'd say that the value hasn't increased, whatsoever.
0:47:44 > 0:47:46Obviously the potential is there,
0:47:46 > 0:47:52but at the moment, it's looking on a par from when I first saw it, a few months ago.
0:47:52 > 0:47:55The main thing I'd say to get as much value out of the property,
0:47:55 > 0:47:58is make sure that the refurb is done to a good standard
0:47:58 > 0:48:00and not just your basic refurbishment.
0:48:00 > 0:48:04To achieve as much as you physically can, go that little bit extra.
0:48:04 > 0:48:08Roger and Lindsey are planning to spend 30,000 on the renovation,
0:48:08 > 0:48:13which would take their spend on the property to £160,000.
0:48:13 > 0:48:15What could they achieve on a resale?
0:48:15 > 0:48:21The figure I'd value the property, once the work has been done, would be around about 184,495.
0:48:21 > 0:48:27You're probably looking at an asking price, once it's fully refurbished, of about 180,000 to £185,000.
0:48:27 > 0:48:28That sounds good.
0:48:28 > 0:48:32That's round about the sort of area that I thought of.
0:48:32 > 0:48:36If I make 20, 25,000, I shall be more than pleased.
0:48:36 > 0:48:38Far more than it would have made in the bank.
0:48:38 > 0:48:42And what could the rental income be?
0:48:42 > 0:48:47The rental value on this, once the work has been done, would be 775 per calendar month.
0:48:47 > 0:48:50You're looking at around £800 per calendar month.
0:48:50 > 0:48:52To sell or rent?
0:48:52 > 0:48:56When the renovation is done, Roger and Lindsey will test the waters
0:48:56 > 0:49:00of the resale market to see if their first property will sink or float.
0:49:00 > 0:49:04It's taken a long time to get there, but after all the hold-ups,
0:49:04 > 0:49:07is Roger still keen to make this new venture work?
0:49:07 > 0:49:11I think it's a hobby, so it's not dead serious.
0:49:11 > 0:49:15But at the end of the day, obviously, I've got to be serious about the money.
0:49:15 > 0:49:19But I'd rather do something with it, with something I like doing,
0:49:19 > 0:49:23rather than just sitting there earning money in the bank.
0:49:23 > 0:49:26So, I shall probably have another go at it.
0:49:31 > 0:49:35# When I get to Warwick Avenue... #
0:49:35 > 0:49:40And that's where we were earlier, in Warwick Avenue, Maida Vale, north-west London.
0:49:40 > 0:49:46Here we met Paula, who bought this one-bedroom flat for £267,000.
0:49:46 > 0:49:49Originally from Romania, she was well prepared for her
0:49:49 > 0:49:55first dip in the property market, but not for quotes on a renovation.
0:49:55 > 0:49:57Most expensive was £29,000.
0:49:57 > 0:49:59Huh! To do what?
0:49:59 > 0:50:05To do the whole place. I envisaged to spend about £15,000 in total.
0:50:05 > 0:50:10Well, it is just a one-bedroom flat, but with great views up and down Warwick Avenue.
0:50:10 > 0:50:16I don't think this place will break her heart, but it might have broken her budget.
0:50:16 > 0:50:20Three months later, we've returned to see what Paula has managed to do.
0:50:20 > 0:50:22And the result?
0:50:29 > 0:50:33Tearing down that kitchen wall has transformed what was a shabby
0:50:33 > 0:50:39lifeless lounge into a more open and stylish kitchen living area.
0:50:39 > 0:50:41And the bedroom?
0:50:43 > 0:50:47Well, this is a far more relaxing, elegant room.
0:50:47 > 0:50:50What about that bathroom?
0:50:53 > 0:50:57The bathroom was actually the biggest change in the flat.
0:50:57 > 0:50:59I had to change all the planning.
0:50:59 > 0:51:03As you can see, I changed the layout completely.
0:51:03 > 0:51:08Obviously I added little things, luxurious things, like a sound system, underfloor heating.
0:51:08 > 0:51:11A towel heater and a shower head.
0:51:11 > 0:51:15So, all good. I'm really pleased with it.
0:51:15 > 0:51:19Back in the bedroom, there has been one very important change.
0:51:21 > 0:51:24As you remember, there was a wall here.
0:51:24 > 0:51:28There was a loo with a door from the hallway.
0:51:28 > 0:51:30That has gone from there.
0:51:30 > 0:51:34I've turned the space into a wardrobe, which is fantastic.
0:51:34 > 0:51:37I didn't have enough storage space before.
0:51:37 > 0:51:42This, you know, does...look,
0:51:42 > 0:51:45it goes all the way back and it's great.
0:51:45 > 0:51:50I think Paula's alterations have made the best use of space in this small flat.
0:51:50 > 0:51:52She can be very proud of the final result.
0:51:52 > 0:51:57But getting to the finished product was not her idea of fun.
0:51:57 > 0:52:01I enjoy things being developed.
0:52:01 > 0:52:04Transformed. I enjoy the end result.
0:52:04 > 0:52:09But I wasn't patient enough to stay here and help the builders, for example.
0:52:09 > 0:52:16I tried for a couple of days and gave up. It's just not for me.
0:52:16 > 0:52:18I'll not touch a brush or anything.
0:52:18 > 0:52:23Well, Paula may have struggled to understand DIY, but she was lucky enough
0:52:23 > 0:52:27to find a team of Romanian builders, who did this fantastic renovation.
0:52:27 > 0:52:30By the sound of it, a bit more, as well.
0:52:31 > 0:52:37The builder picked the colours, the furniture. Everything, basically.
0:52:37 > 0:52:40It made my job really easy.
0:52:40 > 0:52:43They've certainly done a great job in creating a stylish flat,
0:52:43 > 0:52:45but that's only half the story.
0:52:45 > 0:52:53It was still up to Paula to make the finances work and stick to her £15,000 renovation budget.
0:52:54 > 0:52:59Everything that you see in here cost about £20,000.
0:52:59 > 0:53:04That includes furniture and kitchen equipment, everything.
0:53:04 > 0:53:09She may have been £5,000 over the original estimate, but considering she had a
0:53:09 > 0:53:15higher quote of £29,000 to achieve the same renovation, I reckon Paula has done extremely well here.
0:53:15 > 0:53:19But then with her background in buying for the Royal Mail, she knows
0:53:19 > 0:53:23all about the haggling process and the savings that can result.
0:53:23 > 0:53:26I just found the right places to go.
0:53:26 > 0:53:28I went to clearances for houses.
0:53:28 > 0:53:33I looked for deals. For example, the work top, it was in a state.
0:53:33 > 0:53:37It needed a lot of work, but I got it for £50.
0:53:37 > 0:53:41The same work top, you buy it in a place with a name,
0:53:41 > 0:53:43the branded places - £400.
0:53:43 > 0:53:45So, that's how you save money.
0:53:45 > 0:53:49Paula bought the flat for £267,000.
0:53:49 > 0:53:56But she had to add a seller's fee of 2%, which took her costs to just over 272,000.
0:53:56 > 0:53:59Add that £20,000 spent on the renovation,
0:53:59 > 0:54:05plus other expenses, and Paula's total outlay is now £300,000.
0:54:05 > 0:54:08For a first investment, that's a pretty big commitment.
0:54:08 > 0:54:12Paula seems to have navigated her way so far without any problems.
0:54:12 > 0:54:16But now the flat has to face its toughest test.
0:54:16 > 0:54:20My mum hasn't seen the property. She's coming in a couple of days.
0:54:20 > 0:54:24I'm quite nervous about it. My mum will like the property,
0:54:24 > 0:54:28but she'll think it's a bit too small...
0:54:28 > 0:54:29So, we'll see.
0:54:29 > 0:54:33Well, her mother's opinion will be important to Paula.
0:54:33 > 0:54:36But it's the property market that will decide if her flat's a winner.
0:54:36 > 0:54:42So we asked two local estate agents to tell us what they thought of this renovation.
0:54:43 > 0:54:45My first impressions are very good.
0:54:45 > 0:54:48The transformation is incredible, actually.
0:54:48 > 0:54:52New kitchen, new bathroom, wooden floors.
0:54:52 > 0:54:54Just the little touches on the wallpaper.
0:54:54 > 0:54:56It's looking very good.
0:54:56 > 0:54:57I'd think it's very good.
0:54:57 > 0:55:01Lots of natural light, which is important in this area,
0:55:01 > 0:55:04cos people like outside space and you've got that at the front.
0:55:04 > 0:55:07Well proportioned, nice colours. Very good.
0:55:07 > 0:55:10The size of the reception is just about big enough.
0:55:10 > 0:55:13By taking down that wall, she's brought both windows into play,
0:55:13 > 0:55:15so when you walk in, you get a "wow" factor,
0:55:15 > 0:55:18there's more light and you can see the balcony.
0:55:18 > 0:55:20So I think it's a winner as far as I'm concerned.
0:55:20 > 0:55:23But will the returns match their enthusiasm?
0:55:23 > 0:55:28Remember, Paula spent £300,000, so what can she expect to sell the flat for?
0:55:28 > 0:55:33I'd probably put this on the market for an asking price of somewhere about 375,000.
0:55:33 > 0:55:40I'd put it on the market for 370,000 and I'd expect offers anywhere in the region of 360 upwards.
0:55:40 > 0:55:42That sounds fantastic.
0:55:42 > 0:55:44I really, really didn't expect it.
0:55:44 > 0:55:51I'm not surprised. In just three months, she could have made a potential pre-tax profit of £65,000.
0:55:51 > 0:55:55Will the rental figures make her even happier?
0:55:55 > 0:55:56For rental, very attractive.
0:55:56 > 0:55:59You'd be looking in the region of £1,500 per calendar month.
0:55:59 > 0:56:04Per calendar month? I think it would achieve in the region of £1,500.
0:56:04 > 0:56:09Wow! That's fantastic! Because...wow!
0:56:09 > 0:56:15My mortgage is £720, so that's amazing.
0:56:15 > 0:56:20Paula's first dip into the property market has proved a real success.
0:56:20 > 0:56:24With the help of her builders she has created a cool, contemporary London flat.
0:56:24 > 0:56:28She's quite clear about the reason for her success.
0:56:28 > 0:56:29Obviously, I got something right.
0:56:29 > 0:56:34So, yes. Buy it at auction, be clever about it, work hard
0:56:34 > 0:56:37and everybody can do it. Anyone can do it.
0:56:37 > 0:56:41Paula was lucky when everything hit the mark.
0:56:41 > 0:56:47She bought a run-down flat at the right price and definitely in a desirable part of London.
0:56:47 > 0:56:51Also, she did her research and make the figures work for her.
0:56:51 > 0:56:55In this case, there will be no broken hearts in Warwick Avenue.
0:56:57 > 0:56:59That's it for today's properties.
0:56:59 > 0:57:02Join us next time for more Homes Under The Hammer.
0:57:10 > 0:57:13Subtitles by Red Bee Media Ltd
0:57:13 > 0:57:16E-mail subtitling@bbc.co.uk