0:00:02 > 0:00:04In difficult market conditions, it's even more important to buy
0:00:04 > 0:00:06in the right location at the right price.
0:00:06 > 0:00:13It is. From two-up two-down terraces to the unusual and even more quirky, you can find it all at auction.
0:00:13 > 0:00:19But with so much on offer, it's important not to get carried away buying your home under the hammer.
0:00:44 > 0:00:48Now, buying at auction is a very quick way to get your property.
0:00:48 > 0:00:49It's a case of buyer beware.
0:00:49 > 0:00:52When the hammer goes down you own the property,
0:00:52 > 0:00:56you can't change your mind and you have to come up with the cash pronto.
0:00:56 > 0:01:02So, did today's buyers get themselves a bit of a dream or a nightmare?
0:01:02 > 0:01:06For me, a trip to Cornwall could definitely bear fruit.
0:01:06 > 0:01:11Because compared to some of the places that Lucy and I see, this place is positively peachy.
0:01:11 > 0:01:15It seems like they knew what they were doing when they built
0:01:15 > 0:01:19the properties in the '50s, like this one in Greenford, Middlesex.
0:01:19 > 0:01:22I have to say, this house has thought of everything.
0:01:22 > 0:01:25And, in Wales, will anyone jump in to buy this house?
0:01:25 > 0:01:27I know we're by the seaside.
0:01:27 > 0:01:33I think having a floor that's kind of undulating like a wave is not ideal.
0:01:33 > 0:01:37All these properties have been sold at auction and we'll find out
0:01:37 > 0:01:42who bought them and what they paid when they went under the hammer.
0:01:55 > 0:01:59Well, there's no doubt that the housing market has taken a bit of
0:01:59 > 0:02:05a beating in recent times, but there are certain pockets of the country which are more insulated than others.
0:02:05 > 0:02:08Welcome to St Ives.
0:02:18 > 0:02:20Well, the tide might be out today,
0:02:20 > 0:02:26but that won't stop the wave of tourists that visit this picturesque seaside port.
0:02:26 > 0:02:30It's famous for the quality of light, which has drawn artists from around
0:02:30 > 0:02:34the world, so is today's property a masterpiece or just a washout?
0:02:34 > 0:02:39Well, looking at properties in Cornwall sometimes comes with a bit of a health warning.
0:02:39 > 0:02:44Sometimes they're small, pokey little cottages where you're always concerned about banging your head.
0:02:44 > 0:02:48But not today, because this is the property that was on offer.
0:02:48 > 0:02:55It had a guide price of 125,000 quid, so it's not going to send your budget through the ceiling, either.
0:02:55 > 0:03:00Well, it's a recently built semi-detached building that's part of a modern housing development.
0:03:00 > 0:03:05Situated right on the edge of St Ives, I think it has the best of both worlds,
0:03:05 > 0:03:09a semi-rural location and just a stone's throw from the sea.
0:03:09 > 0:03:12And what it can be used for doubles up as well, because it's
0:03:12 > 0:03:18designated a work living space, which means you can both live and run a business here.
0:03:22 > 0:03:25So, it looks like you're getting a lot for your money.
0:03:25 > 0:03:30That is until you come inside when you can't help but getting
0:03:30 > 0:03:32a hollow feeling.
0:03:34 > 0:03:36This isn't much more than a shell.
0:03:36 > 0:03:41No electrics, plumbing, flooring or ceiling, though that £125,000
0:03:41 > 0:03:44guide did reflect that it was far from finished.
0:03:44 > 0:03:48Appropriately enough for artistic St Ives, you could say this was a
0:03:48 > 0:03:53blank canvas, but can it be turned into an oil painting?
0:03:53 > 0:03:56But none of that really worries me,
0:03:56 > 0:04:02because compared to some of the places that Lucy and I see, this place is positively peachy.
0:04:02 > 0:04:06No damp to sort out, it's not got dry rot or anything horrible.
0:04:06 > 0:04:10It's this fantastic space, and no more so than up here.
0:04:10 > 0:04:14Look at this. What a great area for you to put your own stamp on it.
0:04:14 > 0:04:17That's one of the great things about taking on a project in this state.
0:04:17 > 0:04:20You can do what you want with it, subject to planning permission.
0:04:20 > 0:04:22What a great room this would make.
0:04:22 > 0:04:25Pool table in the middle, Jacuzzi...
0:04:25 > 0:04:28Well, maybe that's just me!
0:04:28 > 0:04:30Wow, what a fantastic space.
0:04:30 > 0:04:36It's all watertight and ready for first fix, with windows in and the staircase waiting to go.
0:04:36 > 0:04:39It's also been designed to be environmentally friendly.
0:04:39 > 0:04:44The walls are super-insulated with recycled shredded plastic bottles.
0:04:44 > 0:04:52It's triple-glazed and there's solar heating, so despite all the space, it should be snug and energy efficient.
0:04:52 > 0:04:55What can the auctioneer who sold it tell us about it?
0:04:58 > 0:05:03The property comes with a restriction as to occupation,
0:05:03 > 0:05:04being a live-work unit.
0:05:04 > 0:05:09So, it's kind of residential, but it's kind of commercial as well
0:05:09 > 0:05:16and there's an obligation on the occupier to be earning some form of living from indoors.
0:05:17 > 0:05:20This type of space is becoming increasingly common
0:05:20 > 0:05:25with more people working at home, but it's not without drawbacks.
0:05:25 > 0:05:29The quality needs to be reasonably high,
0:05:29 > 0:05:34because live-work isn't everyone's cup of tea, so that if it's...
0:05:34 > 0:05:38If what you create isn't everyone's cup of tea and it's a bit naff, you're going to struggle.
0:05:38 > 0:05:43You'll probably be able to create something worth about
0:05:43 > 0:05:48270, 280, not quite £300,000.
0:05:48 > 0:05:54But at a guide price of 125,000, anywhere close to 300,000
0:05:54 > 0:05:58sounds to me like there could be a healthy profit.
0:06:01 > 0:06:05Well, I don't know about you, but I really like this place.
0:06:05 > 0:06:08An opportunity to put your stamp on a fairly unique building.
0:06:08 > 0:06:11Of course, you have got the issue of the live-work unit.
0:06:11 > 0:06:14Will that detract, maybe limit your market?
0:06:14 > 0:06:18I don't know, I think it's outweighed by the fact this is a great opportunity.
0:06:18 > 0:06:21Let's find out who spotted it at the auction.
0:06:23 > 0:06:27At eight, we have 1 Tom's Yard at Higher Stennack.
0:06:27 > 0:06:32Guide price is 125, who's going to kick me off at 125? Safe as houses.
0:06:32 > 0:06:35Thank you, sir. 125. At 125.
0:06:35 > 0:06:36At 125. 130. At 130.
0:06:36 > 0:06:41At 130. At 130. Glancing left. 132.
0:06:41 > 0:06:43132. 134.
0:06:43 > 0:06:47134. At 134. Six. 136.
0:06:47 > 0:06:50136. 138. 138.
0:06:50 > 0:06:53138. Would a nine help, sir, in your judgement?
0:06:53 > 0:06:57139. Yeah. Thank you. 139. 140.
0:06:57 > 0:07:00Straight back. 140. 141. 141.
0:07:00 > 0:07:05141. 142. 142. 143. 144.
0:07:05 > 0:07:06144.
0:07:06 > 0:07:11145 is sat. 145. 146. 146. At 147.
0:07:11 > 0:07:15147. At 147 and a half.
0:07:15 > 0:07:17147 and a half. At 148.
0:07:17 > 0:07:20148. 148 I've got. At 148.
0:07:20 > 0:07:24At 148 once, twice.
0:07:24 > 0:07:29148. Here we go, on the floor has it at 148 and done.
0:07:29 > 0:07:31148, the gentleman on the left there.
0:07:31 > 0:07:34Well done, sir. Sorry about that at the back.
0:07:34 > 0:07:41And the man sitting on the floor who put in the winning bid of £148,000 was local builder, Dan.
0:07:41 > 0:07:48I met him back at Tom's Yard to hear more about his plans for this half-finished work-living space.
0:07:48 > 0:07:52- Dan, congratulations. - Thank you.- You've got yourself a sort of half house.
0:07:52 > 0:07:55- It's a bit of a shell, yeah. - Why did you want to buy it?
0:07:55 > 0:08:00I've got a building company along with a sort of development company
0:08:00 > 0:08:03- and we've used it really as a bit of a fill in job.- How do you mean?
0:08:03 > 0:08:07We've got other things in planning at the moment, sort of materialising
0:08:07 > 0:08:11in a few months, so we needed something to keep the guys going.
0:08:11 > 0:08:14Right. So what's the plan? What are you going to do?
0:08:14 > 0:08:18We're going to change the existing plans, turn it into a sort of three-bedroom place with
0:08:18 > 0:08:21possibly a loosely divided sort of annexe down below.
0:08:21 > 0:08:26Three bedrooms instead of the single large one originally planned makes much more sense.
0:08:26 > 0:08:32It's more flexible and should increase the value, so Dan clearly knows what he's doing.
0:08:32 > 0:08:34How long have you been doing this for?
0:08:34 > 0:08:37I've been sort of in the building trade all my life on and off, really.
0:08:37 > 0:08:42My father was a builder, so hooked on to the site at an early age.
0:08:42 > 0:08:45- Slave labour!- Yeah.
0:08:45 > 0:08:50I've recollections of swinging of a roof holding trusses and what have you as a nipper, but, yeah...
0:08:50 > 0:08:53- Have you got children? - Yes, three young children.
0:08:53 > 0:08:55- Four, three and two. - And they on the building sites yet?
0:08:55 > 0:08:57Not yet, no. Nearly!
0:08:57 > 0:09:00- Give them another year or two.- That's it, yeah.- How does it progress
0:09:00 > 0:09:02from your father running his...?
0:09:02 > 0:09:07Well, I actually sort of... When the last recession came around,
0:09:07 > 0:09:13I actually worked abroad and I worked abroad for about ten years sort of spraying yachts.
0:09:13 > 0:09:14Tell me more.
0:09:14 > 0:09:19Refinishing them, really. Just the likes of America's Cup, round the world yachts.
0:09:19 > 0:09:26We were contracted to go and finish them off, spray them and that's really how I got into the actual
0:09:26 > 0:09:31development side of things because I actually earned some cash and came home and bought four properties.
0:09:31 > 0:09:35We turned them round, did various developments on them and
0:09:35 > 0:09:39that's how the company was sort of formed really and went from there.
0:09:39 > 0:09:41His business really has grown.
0:09:41 > 0:09:47He's done new builds, converted a hotel into nine flats and has also done straightforward renovations.
0:09:47 > 0:09:51So, he's seen the highs and the lows of the property market.
0:09:51 > 0:09:56So, here we are in another difficult, interesting period of the property market,
0:09:56 > 0:09:59so what's your sort of view on things as they are at the moment?
0:09:59 > 0:10:03I think you've just got to buy right and not be greedy, really.
0:10:03 > 0:10:05Be realistic on what you can do, what you have to spend
0:10:05 > 0:10:08on a project and what you're going to get back for it.
0:10:08 > 0:10:11So, in terms of finances, how's it going to work with this place?
0:10:11 > 0:10:14On this, hopefully between 50,000 and 60,000.
0:10:14 > 0:10:17And that brings you up to about, ish, 200,000 ish.
0:10:17 > 0:10:22- Yeah, 200, 210.- How much are you anticipating being in able to sell it for, and is that the plan?
0:10:22 > 0:10:25Absolutely, yeah. We'll be looking to resell it.
0:10:25 > 0:10:28We've got one across the road on the market for 375.
0:10:28 > 0:10:32They haven't sold, so we've got to be more realistic. If we could...
0:10:32 > 0:10:35I mean, 260 to 300 would be...
0:10:35 > 0:10:38Anywhere around there would be ideal for us.
0:10:38 > 0:10:40It's a quick in and out and go again.
0:10:40 > 0:10:42Dan's clearly a realist.
0:10:42 > 0:10:48He'll rent it out if he has to, but he does want to get the job done and move on as soon as possible.
0:10:48 > 0:10:54To do that, he needs a scheme that will give it the wow factor, so I was keen to see what he's come up with.
0:10:56 > 0:11:01- Presumably one of the first things you're going to do is sort out the staircase!- Absolutely!
0:11:01 > 0:11:02Get rid of that dodgy little ladder.
0:11:02 > 0:11:04Not really ideal, is it?
0:11:04 > 0:11:08I remember when I first saw this, I came up here, what a great space!
0:11:08 > 0:11:10I know, it's fantastic.
0:11:10 > 0:11:12What are you going to do with this?
0:11:12 > 0:11:17- Well, we're looking probably to get two bedrooms on this level. - Right.- One over here.
0:11:17 > 0:11:23There's a slight sort of temporary piece of timber on the floor we're just sort of mapping it about.
0:11:23 > 0:11:26- That wall's going to go.- So you're going to take that wall out?
0:11:26 > 0:11:29Yeah, it's right in the way at the moment. It's halfway through
0:11:29 > 0:11:32the bedroom that's going to go there.
0:11:32 > 0:11:36En-suite in the corner and a sort of bathroom behind here.
0:11:36 > 0:11:40We're going to change the stair arrangement, put a spiral staircase in the middle.
0:11:40 > 0:11:43- Oh, wow.- And it'll also go up to a little mezzanine at the top.
0:11:43 > 0:11:47- OK.- A small little mezzanine there, it could be a kid's bedroom or
0:11:47 > 0:11:49anything really, a little office.
0:11:49 > 0:11:52- But it converts into a three-bedroom property?- Yes.
0:11:52 > 0:11:54Do you need planning permission?
0:11:54 > 0:11:57Yes, there's a slight external detail that needs changing.
0:11:57 > 0:12:00We want to put an extra doorway through on the ground floor and
0:12:00 > 0:12:03there's also a couple of Veluxes needed for the mezzanine.
0:12:03 > 0:12:07Yeah, there is an application but it's going in next week with a bit of luck.
0:12:07 > 0:12:10What kind of involvement do you have on a day-to-day basis?
0:12:10 > 0:12:16No, I'm in daily throughout the days and basically making sure it's all running well and more often than not
0:12:16 > 0:12:19I've got a number of projects on the go, so it's a case of just
0:12:19 > 0:12:23coordinating all the different teams and making sure it's happening.
0:12:23 > 0:12:27Do you still get any kind of kick out of turning places around?
0:12:27 > 0:12:30Yeah, doing the deals. That's where you get your kick, yeah. I think so.
0:12:30 > 0:12:32Not the actual hammering and nailing?
0:12:32 > 0:12:35No, no. I try and stay away from that, if possible.
0:12:37 > 0:12:41With his team of builders in place and that 60 grand budget,
0:12:41 > 0:12:45you would have thought this project should be plain sailing for Dan, but you just never know.
0:12:50 > 0:12:55Well, Dan is the perfect guy to take on this project.
0:12:55 > 0:12:58To an amateur builder, it would be difficult to finish it off.
0:12:58 > 0:13:00To him, an absolute piece of cake.
0:13:00 > 0:13:04The only issue is this whole live-work unit palaver.
0:13:04 > 0:13:08Will it actually limit his market, as the agents predict? Well, I'm not sure.
0:13:08 > 0:13:11However, he's being very realistic about what he's going
0:13:11 > 0:13:17to get when he sells this place, so I'm sure that will counteract it and he'll be fine in the long run.
0:13:17 > 0:13:19You can find out later in the show.
0:13:28 > 0:13:31I'm in Greenford in the London borough of Ealing.
0:13:31 > 0:13:35Now, I'm struggling to tell you an interesting historical fact
0:13:35 > 0:13:38about Greenford or talk about an important landmark
0:13:38 > 0:13:45because, really, its most prominent feature is the A40. But you know, that's not necessarily a bad thing.
0:13:45 > 0:13:49From here, the A40 will get you into central London in less than
0:13:49 > 0:13:5530 minutes and in even less time on to the Centre Line tube which will get you direct into Oxford Circus.
0:13:55 > 0:14:01Who needs ancient churches and famous residents when you've got fabulous transport links?
0:14:03 > 0:14:10OK, so that might be me looking on the bright side. But in London, transport links are key and with
0:14:10 > 0:14:14property prices in the centre still prohibitively expensive,
0:14:14 > 0:14:17maybe the more affordable Greenford offers a good compromise.
0:14:21 > 0:14:28I'm on the south side of Greenford on Ferrymead Avenue, which is lined with solid 1950s terraced housing.
0:14:28 > 0:14:30Well, I'm here to see a two-bed.
0:14:30 > 0:14:32It's got a guide of 165,000.
0:14:32 > 0:14:36Now, that seems cheap to me, but it looks even better when you think
0:14:36 > 0:14:43if you got it around that guide, you'd be under the recently revised Stamp Duty threshold of 175,000.
0:14:43 > 0:14:46I'm going to have a look around.
0:14:46 > 0:14:50So, from the outside, this 1950s house is nothing to write home about.
0:14:50 > 0:14:56The windows could do with modernising and the paintwork's flaking a little bit, but I like
0:14:56 > 0:15:01the fact that it's set back from the road and it comes with a garage which can be accessed at the back.
0:15:03 > 0:15:08Now, inside and it immediately feels dated.
0:15:08 > 0:15:10Let's have a look in the front reception room.
0:15:10 > 0:15:12Do you know what? It's quite sad.
0:15:12 > 0:15:14It's obviously been somebody's home until recently.
0:15:14 > 0:15:18But looking at the room, well, you can see there's a decent space here.
0:15:18 > 0:15:24You've got big windows at either end, but the kitchen is tucked around the corner, here.
0:15:24 > 0:15:29I'd definitely look at taking this wall down and open up this kitchen into this big living area.
0:15:29 > 0:15:33I think it will then have a sense of flow and just be more functional.
0:15:35 > 0:15:40Opening up the kitchen would make such a difference, but it clearly suited the previous occupier.
0:15:40 > 0:15:43Having done a little research, I discovered that she was
0:15:43 > 0:15:47an elderly later lady who has now moved into a residential home.
0:15:47 > 0:15:51Although the house is dated, it still retains that cared-for look.
0:15:51 > 0:15:57Generally, the layout's pretty good with an upstairs bathroom and two bedrooms.
0:16:01 > 0:16:06One is a reasonably sized back bedroom
0:16:06 > 0:16:09and there's a very generously sized master bedroom,
0:16:09 > 0:16:12which I suspect may have been two bedrooms knocked into one.
0:16:14 > 0:16:20This house is really adding up as a family starter home, especially when you see the size of this garden!
0:16:20 > 0:16:24There's plenty of room to expand out the back here, subject to planning of, course.
0:16:24 > 0:16:29Or you could think about building a conservatory or sunroom with some
0:16:29 > 0:16:33lovely bi-folding doors opening right out here.
0:16:33 > 0:16:37And at the back, you've got your own garage and rear access.
0:16:37 > 0:16:40I have to say, this house has thought of everything.
0:16:40 > 0:16:44A quick glance over the fence is encouraging, too, with all manner of
0:16:44 > 0:16:48extensions, garages and outbuildings added to the other properties.
0:16:48 > 0:16:50Provided you're not too ambitious,
0:16:50 > 0:16:54extensions or other additions should get planning permission.
0:16:57 > 0:16:59I asked a local estate agent
0:16:59 > 0:17:02what alterations to the property could maximise its value.
0:17:02 > 0:17:05The structural changes I would make to this property
0:17:05 > 0:17:08would be to put a wall back up in the main bedroom to turn it
0:17:08 > 0:17:10back into a three bedroom house
0:17:10 > 0:17:13and change some of the walls in the kitchen to give a bit more space.
0:17:13 > 0:17:15A kitchen diner is always popular.
0:17:15 > 0:17:18The property here could be extended to the rear.
0:17:18 > 0:17:21A single-storey ground floor extension would be fine.
0:17:21 > 0:17:24A double-storey extension would probably have difficulty getting
0:17:24 > 0:17:27acceptance due to the proximity of the other houses in the area.
0:17:27 > 0:17:32Is there potential uplift in this place that was guided at £165,000?
0:17:32 > 0:17:38Once the property has been done up to a more modern standard, I'd expect it to reach about £230,000.
0:17:38 > 0:17:43If the property had some work done and turned it into a three bedroom house I would imagine it could reach
0:17:43 > 0:17:46as much as £250,000 in the current market.
0:17:46 > 0:17:51As the estate agent suggests rental figures of up to £1,100 a month,
0:17:51 > 0:17:56this little house could add up very nicely indeed.
0:17:56 > 0:18:00For a two-bedroom house so close to central London, this is a steal.
0:18:00 > 0:18:04On the face of it, there doesn't seem to be any major issues
0:18:04 > 0:18:07and there is so much scope to add value and improve the space.
0:18:07 > 0:18:13Let's be honest, it's not a beautiful house, but it inspires in a different way. It just works.
0:18:13 > 0:18:15Let's see who was tempted at the auction.
0:18:18 > 0:18:23Lot 29 is Ferrymead Avenue, Greenford, Middlesex.
0:18:23 > 0:18:26Where shall we say, 170? Can I have 170 anywhere?
0:18:26 > 0:18:30Yeah? 170 sitting down. 175.
0:18:30 > 0:18:32180.
0:18:34 > 0:18:37Yeah? 185.
0:18:37 > 0:18:40190.
0:18:40 > 0:18:42195, back to you.
0:18:43 > 0:18:45Are you bidding or not?
0:18:45 > 0:18:47196. 197.
0:18:49 > 0:18:51196 to the lady.
0:18:51 > 0:18:55First time, second time. 197.
0:18:55 > 0:18:57198.
0:18:57 > 0:18:59197 to him.
0:18:59 > 0:19:03First time, second time, third and last time if you're all done?
0:19:03 > 0:19:06Sold, 197.
0:19:06 > 0:19:13After quite a battle, the winning bid of £197,000 was made by David.
0:19:13 > 0:19:19He bought this as a new family home for himself, his wife, Christine, and their imminent addition.
0:19:19 > 0:19:24David works as a mastering engineer in the film industry and Christine is a midwife.
0:19:24 > 0:19:27Guys, congratulations! This is great news. David, you looked
0:19:27 > 0:19:31so excited and happy when you got the auction lot that you wanted.
0:19:31 > 0:19:34Yeah. Yeah, I hadn't really expected to get it, if I'm honest.
0:19:34 > 0:19:39The bidding had gone higher than where I'd said I was going to stop.
0:19:39 > 0:19:45And then it was my last go I thought, you know, one more bid, give it a shot and it stopped on me!
0:19:45 > 0:19:47Sold, 197.
0:19:47 > 0:19:51So, Christine, what did you think about the house prior to auction? Did you look at it?
0:19:51 > 0:19:56- No, I'd never seen it. This is the first time I've seen it today. - Wow!- Yes.
0:19:56 > 0:20:01We picked up the keys this morning and I just trusted David, really.
0:20:01 > 0:20:05I knew he knew what I liked, so I just put it all in his hands and...
0:20:05 > 0:20:10And thought it will be great when I see it, and it is!
0:20:10 > 0:20:13- So, Christine, you're expecting a baby...- I am, yes.- Any time?
0:20:13 > 0:20:19Yes, well, it's 36 weeks now so from about a week's time I'll be term and any time from there, really.
0:20:19 > 0:20:22So they've managed to get this house just in time.
0:20:22 > 0:20:26As they previously lived in a one bed rented flat in London,
0:20:26 > 0:20:29you can understand their delight at buying this.
0:20:29 > 0:20:32The extra space will be a welcome change for them.
0:20:32 > 0:20:38The location is also perfect, as Christine works at one end of the A40 and David at the other.
0:20:38 > 0:20:42Have you got the vision for what you want to do to this property?
0:20:42 > 0:20:46- We have some ideas.- David... David has ideas. I'm leaving them to him.
0:20:46 > 0:20:48You're leaving quite a lot to David!
0:20:48 > 0:20:52- I know you've a lot going on there, but you're very trusting! - Quite busy at the moment!
0:20:52 > 0:20:55- Yeah.- You're very trusting in him, aren't you?- Well, yes.
0:20:55 > 0:20:59He's done this once before in East London. You bought a flat
0:20:59 > 0:21:05and did it all up from scratch and had some quite interesting ideas and
0:21:05 > 0:21:10- it all worked well. - So... So, what are your interesting ideas for this house then, David?
0:21:10 > 0:21:18Basically, I want to kind of remodel the downstairs, get rid of that wall there and that wall there, as well.
0:21:18 > 0:21:20Whoa! So, you walk into one room?
0:21:20 > 0:21:25- Yeah.- OK, so it'll be the everything, the kitchen, the dining room, the lounge?- Yes.
0:21:25 > 0:21:26- Just one open-plan room.- Yes.
0:21:26 > 0:21:30I mean, with the baby coming, I really like the idea of being
0:21:30 > 0:21:36able to cook in the kitchen and still see the baby playing in the lounge and kind of not worrying about...
0:21:36 > 0:21:39Kind of, see what she's doing, sort of thing.
0:21:39 > 0:21:43So, what's the budget, then, for your ideas?
0:21:43 > 0:21:49We've got a small amount of money left in savings after, you know, all the solicitor's fees
0:21:49 > 0:21:55and everything, but I also have a very generous granny who's helped us out with the deposit and she's...
0:21:55 > 0:22:00you know, said she wants to kind of buy us washing machines and things like that and things for
0:22:00 > 0:22:06the baby, so that's really, really nice of her and we wouldn't have been able to do it without her help.
0:22:06 > 0:22:09I think £5,000 should cover the initial work,
0:22:09 > 0:22:14though later they would like to add an extension and possibly a loft conversion.
0:22:14 > 0:22:18In addition to his job, David plays in two bands and hopes maybe he could have
0:22:18 > 0:22:25a studio at the end of the garden. But that's all in the future, so what are their immediate plans?
0:22:25 > 0:22:27How soon are you hoping to get in here?
0:22:27 > 0:22:28I mean, you got the keys today.
0:22:28 > 0:22:30- Tomorrow.- Yeah.- Really?- Yeah.
0:22:30 > 0:22:34- And you're going to live in it like this, are you? - Yeah.- Yes.- Oh, yeah.
0:22:34 > 0:22:37We might get rid of some of the furniture that's been left behind.
0:22:37 > 0:22:40Hopefully, we'll get the first bit of work done quite quickly,
0:22:40 > 0:22:43because obviously I don't want to be banging around when...
0:22:43 > 0:22:46when our child is trying to sleep upstairs.
0:22:46 > 0:22:48They don't sleep.
0:22:48 > 0:22:51Oh, dear, I think David and Christine have a bit to learn!
0:22:51 > 0:22:54It's always a challenge at the best of times working on
0:22:54 > 0:23:00a house whilst living it in it, but with full time jobs and a new baby, this is going to be much tougher.
0:23:00 > 0:23:04So, is there anything now that's worrying you with this?
0:23:04 > 0:23:09I remember when David was doing up his last property, there was an issue with sawdust.
0:23:09 > 0:23:13So, we're going to have to confine areas where you're allowed to make some mess...
0:23:13 > 0:23:16- Yeah.- ..and exclude you from others.
0:23:16 > 0:23:20- What you produce in the end... - I've got a room now, though, to do it in.- Oh, that's true.
0:23:20 > 0:23:22- I can do it in the garage.- Yes.
0:23:22 > 0:23:24We have a garage, can you believe that?
0:23:24 > 0:23:26- Do you love that? - It's great, it's great.
0:23:26 > 0:23:29I never thought I would ever have a house with a garage.
0:23:29 > 0:23:34Christine, you just seem extremely calm at the moment. Are you feeling that?
0:23:34 > 0:23:38I'm just delighted that we've got somewhere that is not a pokey one-bedroom flat
0:23:38 > 0:23:41with lots of prams and things in the middle of the room.
0:23:41 > 0:23:43I am thrilled for you two.
0:23:43 > 0:23:46Clearly, I cannot wipe the smiles off your faces.
0:23:46 > 0:23:48- No.- Good luck with the baby. - Thank you.
0:23:48 > 0:23:52Good luck with the renovations and everything you do together.
0:23:52 > 0:23:54- It's been a pleasure to meet you. - Thank you.
0:24:13 > 0:24:18David and Christine have got such an exciting time ahead of them
0:24:18 > 0:24:21and I'm just delighted they found their perfect home.
0:24:21 > 0:24:24It's great, they can do the work bit by bit, but I'd really
0:24:24 > 0:24:28advise them against taking down all the internal walls downstairs.
0:24:28 > 0:24:32Find out what they decide later in the programme.
0:24:33 > 0:24:37Coming up, in Wales I find my own kitchen nightmare.
0:24:37 > 0:24:41Trying to get your Sunday roast out?
0:24:41 > 0:24:43You can't. This has got to go.
0:24:43 > 0:24:46We return to Greenford in Middlesex
0:24:46 > 0:24:50to see how David and Christine are getting on with their new space.
0:24:50 > 0:24:54I've no idea how we lived in such a small flat.
0:24:54 > 0:24:59But first, has Dan stuck with his plan to cope with the current property slump?
0:24:59 > 0:25:05Be realistic on what you to have to spend on the project and what you're going to get back for it.
0:25:09 > 0:25:15For many years, St Ives in Cornwall has been a desirable coastal town to live in.
0:25:15 > 0:25:21The natural harbour and rugged coastline has attracted both tourists and artists alike.
0:25:21 > 0:25:25When local builder, Dan, came across a half finished work-living space
0:25:25 > 0:25:29on the edge of the town, he thought it was the perfect project
0:25:29 > 0:25:34to keep his building team busy and at the same time turn a profit, so he paid 148 grand for it.
0:25:34 > 0:25:42Well, six months later, had he turned the blank canvas into a masterpiece?
0:25:42 > 0:25:46Well, from the front, the outside space hasn't altered greatly.
0:25:48 > 0:25:51But the back garden has now been completed.
0:25:56 > 0:26:02Along with new patio doors, he's also repositioned the main back entrance.
0:26:06 > 0:26:10Inside, the designated work area is complete.
0:26:19 > 0:26:21There's also a downstairs kitchen
0:26:21 > 0:26:26which Dan installed to give him more options, as he explains.
0:26:29 > 0:26:34One of the main areas we've changed, I suppose, is removal of the wall
0:26:34 > 0:26:39which made a large corridor area that used to sort run through here and up the stairs.
0:26:39 > 0:26:44We've taken that out, which makes this room obviously a lot larger and also the workspace in there,
0:26:44 > 0:26:47you know, sort of free from clutter and a lot larger.
0:26:47 > 0:26:51And obviously the best thing is, we can sort of close this door
0:26:51 > 0:26:55and it gives you a lettable separate unit.
0:26:57 > 0:27:01With one bedroom and a shower room downstairs, everything is here
0:27:01 > 0:27:06for this to be a self-contained unit, but what about upstairs?
0:27:06 > 0:27:12When we walked into this massive open sort of cavernous space, OK, it was a great open area
0:27:12 > 0:27:16as one room, but I just think it was also a bit of a waste.
0:27:19 > 0:27:22Well, it certainly is not a waste now.
0:27:22 > 0:27:24Ooh, love it!
0:27:26 > 0:27:30And out of this massive cavernous area we've managed to get a mezzanine area,
0:27:30 > 0:27:36which could be used as an occasional bedroom or possibly an office, two good bedrooms.
0:27:40 > 0:27:44One of the bedrooms is en-suite and the other of a good size.
0:27:44 > 0:27:46So, along with the mezzanine room
0:27:46 > 0:27:50and the downstairs bedroom, Dan has managed to turn this
0:27:50 > 0:27:53into a potentially four-bedroom property.
0:27:53 > 0:27:58Obviously getting the kitchen diner and a living space, so it's worked out quite well.
0:27:58 > 0:28:03Not only has he utilised the space well, but he's also gone for a pretty high spec.
0:28:03 > 0:28:08The kitchen has all mod cons and with triple-glazing, super-insulation
0:28:08 > 0:28:15and solar water heating, he's also created a property that exceeds all modern eco standards.
0:28:15 > 0:28:17How hands-on has he been?
0:28:19 > 0:28:25I come every day in the mornings and at night, you know, just to, you know, see how things are going.
0:28:25 > 0:28:28I organise all the materials and I've a great team of guys, you know?
0:28:28 > 0:28:30They should really take all the credit.
0:28:30 > 0:28:33They do all the work. I've done...
0:28:33 > 0:28:36I've come in and helped out when necessary, but they've certainly
0:28:36 > 0:28:39knocked this out themselves and they should take the credit.
0:28:39 > 0:28:43Dan may not have got his hands dirty, but the look and layout was part
0:28:43 > 0:28:46of a collaborative process with a local architect.
0:28:46 > 0:28:49But it's come at a cost of at least £70,000
0:28:49 > 0:28:55and Dan says his total spend is now around 225,000.
0:28:55 > 0:28:58I'm intending to sell the property as soon as possible.
0:28:58 > 0:29:01It's going on the market at 385.
0:29:01 > 0:29:04There are two agents marketing it at the moment.
0:29:04 > 0:29:10385,000 is a massive jump up from his £225,000 investment,
0:29:10 > 0:29:14but is it a realistic figure in the current market?
0:29:14 > 0:29:17What do two local property experts think?
0:29:25 > 0:29:27When I was here previously,
0:29:27 > 0:29:32it was an empty shell and the plans were for a one-bedroomed house
0:29:32 > 0:29:37and I've come here today and there's three bedrooms, workspace, it's...
0:29:37 > 0:29:40It's an unbelievable transformation.
0:29:40 > 0:29:43When you come inside, your initial impressions are
0:29:43 > 0:29:46of a property that has been finished to a very high standard.
0:29:46 > 0:29:52Somebody has taken time to finish off all the little finishing touches that so often get left behind.
0:29:52 > 0:29:59Just the flooring, the carpet throughout, the slate, windowsills.
0:29:59 > 0:30:02They've thought through every aspect of the property.
0:30:02 > 0:30:09Well, they may like what Dan's done here, but does it warrant the 385 grand price-tag he's put on it?
0:30:09 > 0:30:14Although it is finished to a very, very high degree I think realistically,
0:30:14 > 0:30:20325, 340 would be absolute maximum in this current market.
0:30:20 > 0:30:26I'd expect something between £325,000 and £350,000 has got more chance of being got.
0:30:26 > 0:30:31I don't think that even those £320,000 values are too shabby.
0:30:31 > 0:30:36In terms of potential pre-tax profit, that's still almost 100,000.
0:30:36 > 0:30:39- What does Dan think?- We'll give it three or four months, you know,
0:30:39 > 0:30:43give it time out in the market and then go for it
0:30:43 > 0:30:45after that and get it rented.
0:30:45 > 0:30:47How would it do as a rental?
0:30:47 > 0:30:52As a whole, to the perfect legitimate user,
0:30:52 > 0:30:55you could be looking as much as £800 to £900 per calendar month.
0:30:55 > 0:30:57I think realistically,
0:30:57 > 0:31:00You can't really achieve much more than about 850 per calendar month.
0:31:00 > 0:31:05If you could actually split it into two separately lettable components,
0:31:05 > 0:31:09you could top over the £1, 000 a calendar month. Totally. Quite easily.
0:31:09 > 0:31:14So, those values are just around tick-over value.
0:31:14 > 0:31:17He will definitely make more if he could rent it out separately.
0:31:17 > 0:31:21But for Dan, this is primarily a selling project.
0:31:21 > 0:31:23So, where will he go from here?
0:31:23 > 0:31:29Keep developing. But it would be nicer, because now I have sort of three young children, to actually
0:31:29 > 0:31:34ease off a little bit and spend some time with the children. So that's my ultimate goal.
0:31:34 > 0:31:36Whether it'll happen is another matter.
0:31:36 > 0:31:40Well, if all his infill jobs make the same potential return as this one,
0:31:40 > 0:31:44then maybe he'll be able to get his wish sooner rather than later.
0:32:09 > 0:32:14No, Homes Under The Hammer hasn't upped sticks and moved to Australia,
0:32:14 > 0:32:17though with these beach scenes, you could be forgiven for thinking that.
0:32:17 > 0:32:24In fact, I'm a lot closer to home in the glorious Gower region of South Wales.
0:32:30 > 0:32:34It's easy to understand why the Gower was the first place in the UK
0:32:34 > 0:32:38to be declared a site of outstanding natural beauty.
0:32:38 > 0:32:41Not only has got those beaches, it's got some glorious countryside, too.
0:32:41 > 0:32:44The property I'm here to see is aptly named.
0:32:44 > 0:32:47It's called Squirrel's Leap, it's a three-bedroom cottage.
0:32:47 > 0:32:51It had a guide price of £115,000.
0:32:51 > 0:32:55A cottage surrounded by all this natural beauty
0:32:55 > 0:32:58and for such a modest sum? I'm pretty excited.
0:32:58 > 0:33:03Well, it's reasonably attractive, but immediately looks like it needs some repairs.
0:33:03 > 0:33:09It would benefit from new windows and a lick of paint, but I like the fact that it's detached.
0:33:09 > 0:33:14So, cute if a little bit tired on the outside. What have we got inside?
0:33:14 > 0:33:19Well, straight through the front door into one large kind of living room-reception room.
0:33:19 > 0:33:20What is going on with that ceiling?
0:33:20 > 0:33:23I'd definitely want to do something about that.
0:33:23 > 0:33:29But... OK, well, I know we're by the seaside, but I think having a floor
0:33:29 > 0:33:32that's kind of undulating like a wave is not ideal.
0:33:32 > 0:33:35Still, it's a good-sized space and you shows you need to fit
0:33:35 > 0:33:38this kind of flooring properly and leave a gap round the edges.
0:33:38 > 0:33:41Let's hope there aren't too many DIY disasters in the kitchen.
0:33:41 > 0:33:43Well, actually, it's not too bad.
0:33:43 > 0:33:47You can't intrinsically dislike it, but it's a bit disappointing because
0:33:47 > 0:33:52this is a cottage and you kind of hope for a cottage-style kitchen, which it certainly isn't.
0:33:52 > 0:33:57And something which you are definitely going to have to change is this breakfast bar.
0:33:57 > 0:34:00Ergonomically disastrous! You're trying to get your
0:34:00 > 0:34:02Sunday roast out,
0:34:02 > 0:34:04you can't. This has got to go.
0:34:04 > 0:34:09So, it's definitely curtains for the breakfast bar, but perhaps just by
0:34:09 > 0:34:14replacing the unit doors and tiles, it could look like a new kitchen.
0:34:14 > 0:34:19Off that kitchen, there's a breakfast dining room and a utility area complete with modern shower.
0:34:19 > 0:34:24So, there's no lack of space downstairs.
0:34:28 > 0:34:34Upstairs isn't bad either, with three fair-sized bedrooms.
0:34:38 > 0:34:42And a reasonable bathroom.
0:34:42 > 0:34:46There's also the interesting addition of patio doors leading on
0:34:46 > 0:34:51to a walkway which takes you straight out to the long sloping garden.
0:34:53 > 0:34:57That also comes complete with its own outbuilding or tool shed.
0:34:57 > 0:35:05So, all in all, this seems to add up to a lot of property for what was a guide price of 115,000.
0:35:05 > 0:35:08Given its location, I think this would make a great holiday home
0:35:08 > 0:35:14or holiday let. What does a local estate agent think?
0:35:14 > 0:35:17Personally, I wouldn't advise making any major alterations
0:35:17 > 0:35:21as far as extensions go. Possibly if you look at the holiday let route,
0:35:21 > 0:35:25you could change one of the rooms downstairs and make it into an extra bedroom.
0:35:25 > 0:35:32We're in a prime holiday area, so maximising bedrooms make sense. But holiday lets are very seasonal,
0:35:32 > 0:35:35so is it financially viable to go along this route?
0:35:35 > 0:35:41Weekly rents you'd be looking approximately between £500 and £600, depending on the season.
0:35:41 > 0:35:47That's OK. With only 50% occupancy that would still net nearly £13,000,
0:35:47 > 0:35:52which on a guide price of £115,000 sounds like a decent return.
0:35:52 > 0:35:56I would say when the property is fully renovated you'd be looking at
0:35:56 > 0:35:59an asking price of 200,000 to 220,000.
0:35:59 > 0:36:05That means it also stacks up from a resale point of view, keeping all options open.
0:36:05 > 0:36:11So, a bit of work to be done, but intrinsically this is a lovely little cottage in a great location that
0:36:11 > 0:36:15would make a wonderful family home or potentially a lucrative holiday let.
0:36:15 > 0:36:21The big question is, did they go nuts for Squirrel's Leap at the auction?
0:36:23 > 0:36:27Right, we go on to lot number ten now, ladies and gentlemen,
0:36:27 > 0:36:28which is the detached house
0:36:28 > 0:36:32in Swansea. 120 to start.
0:36:32 > 0:36:35120, thank you. I'm bid at £120,000.
0:36:35 > 0:36:38At 128 it's your bid. At 120.
0:36:38 > 0:36:40And five, thank you.
0:36:40 > 0:36:44Bid to me in the back, sir. 130 standing right in the back.
0:36:44 > 0:36:46135 and again if you like, sir.
0:36:46 > 0:36:50At 135. At 135. 140 I am bid.
0:36:50 > 0:36:53Thank you. Five is bid. Please bid as quick as him.
0:36:53 > 0:36:55At 145. Six if you like, sir.
0:36:55 > 0:36:58At 146. 146. You're out still.
0:36:58 > 0:37:00Seven. Seven is bid.
0:37:00 > 0:37:02147. And eight if you like. At 147.
0:37:02 > 0:37:05Hold it up again. Hey, thank you.
0:37:05 > 0:37:08At one nine. At 149. And again, sir.
0:37:08 > 0:37:11You'd better leave it up there permanently! 50, thank you.
0:37:11 > 0:37:13At 150. And one, can I?
0:37:13 > 0:37:15At 150 you're out, sir. One?
0:37:15 > 0:37:18At 151. No, hold it up again!
0:37:18 > 0:37:21At 151. Because you're going to lose it otherwise.
0:37:21 > 0:37:23Make no mistake, I'm selling all the time.
0:37:23 > 0:37:28At two. 152. Three is bid. 153 here.
0:37:28 > 0:37:31You're out before... 154.
0:37:31 > 0:37:36You're still not getting it yet, sir. At 154. Five, can I? 155.
0:37:36 > 0:37:40At 155. Bid again in the back, sir, if you want it. Be quick, please.
0:37:40 > 0:37:44At 155. Put that number up again if you want it.
0:37:44 > 0:37:46At 155. The hammer's up then.
0:37:46 > 0:37:50I'm selling to the gentleman in the middle of the room at £155,000.
0:37:50 > 0:37:53Have you all done?
0:37:53 > 0:37:55It's yours, sir, thank you very much.
0:37:55 > 0:38:03After a hard-fought battle that pushed the price up to 155,000, the new owner of Squirrel's Leap is John.
0:38:03 > 0:38:08He now lives on the Gower Peninsula not far from his latest acquisition.
0:38:08 > 0:38:11John, nice to meet you. That was a bit of a battle, wasn't it?
0:38:11 > 0:38:16- It certainly was.- So, why were you so keen to buy the place?
0:38:16 > 0:38:21Well, I think the first thing that attracted me to the property is the name, Squirrel's Leap.
0:38:21 > 0:38:26And I'd had a good look at it, it's in a good position.
0:38:26 > 0:38:33- I know the Gower is a beautiful place to be in and I thought it would be good value.- Right.
0:38:33 > 0:38:35So, buying it with a view to what?
0:38:35 > 0:38:39My intention now is to turn it into a holiday let.
0:38:39 > 0:38:43We can make four bedrooms
0:38:43 > 0:38:47to suit eight people. There will be a disabled bedroom as well,
0:38:47 > 0:38:51so we'll be able to cater for disabled people.
0:38:51 > 0:38:57John already owns another holiday let property and feels that it's important in this competitive market
0:38:57 > 0:38:59to have an edge on the others available.
0:38:59 > 0:39:05He did some research and decided that disabled people are not well catered for, so he felt that was a potential
0:39:05 > 0:39:09area to make this house stand out from the others in the region.
0:39:09 > 0:39:12What did you do before you got into this?
0:39:12 > 0:39:16I came to Swansea 30 years ago to start up a business in chemical distribution.
0:39:16 > 0:39:19- Oh, wow!- And we...
0:39:19 > 0:39:24We built it from nothing to a £15½ million,
0:39:24 > 0:39:28200-employee company.
0:39:28 > 0:39:33- Wow!- But five, six years ago I retired from that.
0:39:33 > 0:39:38I then worked in the construction industry for five years and then
0:39:38 > 0:39:46just about a year ago I decided that I would retire from business life,
0:39:46 > 0:39:50invest my money in properties, including holiday properties.
0:39:50 > 0:39:54John isn't fazed about taking on new challenges.
0:39:54 > 0:39:57Although this may be a retirement project, he approaches it with the
0:39:57 > 0:40:01same businesslike manner he applies to all his ventures.
0:40:01 > 0:40:05What do you think the biggest challenges of doing holiday lets are?
0:40:05 > 0:40:08In this day and age, second-best won't do any more.
0:40:08 > 0:40:12People will pay a good price for their holiday let, but they expect
0:40:12 > 0:40:18it to be tip-top, five-star with all the modern facilities incorporated.
0:40:18 > 0:40:23And my wife is in charge of the finishing touches
0:40:23 > 0:40:28and she insists on making it a top-quality finish.
0:40:28 > 0:40:35So, tell me what you're going to do to turn this into the sort of desirable holiday let you hope.
0:40:35 > 0:40:40Well, we'll be blocking the door from the kitchen into what's euphemistically called
0:40:40 > 0:40:41the breakfast room at the moment
0:40:41 > 0:40:48and opening another door from the dining area to create the disabled bedroom.
0:40:48 > 0:40:53And then adding to that,
0:40:53 > 0:40:58access to a shower room and disabled toilets.
0:40:58 > 0:41:05So, the disabled person's quarters will be self-contained on the ground floor.
0:41:05 > 0:41:08Then we have three bedrooms upstairs.
0:41:08 > 0:41:14We'll be taking out the walkway across to the garden
0:41:14 > 0:41:17and the French window there, putting a window in
0:41:17 > 0:41:21and creating a second bathroom, so we'll have two bathrooms upstairs.
0:41:21 > 0:41:25We'll also be taking back the bank
0:41:25 > 0:41:29behind the kitchen window to create a patio area there
0:41:29 > 0:41:33and to let more light into the ground floor of the house.
0:41:33 > 0:41:36So, what kind of budget have you set aside for doing the work?
0:41:36 > 0:41:40Our initial cost costing is around £20,000.
0:41:40 > 0:41:46I think that now we've looked a bit more into disabled access part,
0:41:46 > 0:41:49that's going to add maybe 5,000 more
0:41:49 > 0:41:56and by the time we furnish and fit it out that's another 10,000. So £35,000 to £40,000.
0:41:56 > 0:41:59John certainly seems to have been very thorough here.
0:41:59 > 0:42:02He knows both his market and his returns.
0:42:02 > 0:42:04Although he will plan and project-manage the work,
0:42:04 > 0:42:08he'll employ a builder friend to carry out most of the changes.
0:42:08 > 0:42:12He hopes that in three months it will be ready for his first holiday let.
0:42:12 > 0:42:18So, will John's plans for Squirrel's Leap have him leaping for joy?
0:42:18 > 0:42:23Well, I think his idea of going five-star is definitely a good thing to do,
0:42:23 > 0:42:28and also building in those disabled features will give him an advantage over the competition.
0:42:28 > 0:42:35But there's a lot of work to do and running a holiday let is a business and a lot of work in itself.
0:42:35 > 0:42:39How will he get on? You can find out later in the show.
0:42:41 > 0:42:46Well, time has passed. Have our purchasers kept on schedule or have they overrun?
0:42:46 > 0:42:50Have they stuck to their budget or has the money slipped through their fingers?
0:42:50 > 0:42:51Let's go and find out.
0:42:51 > 0:42:56Greenford in Middlesex may not win awards for stunning scenery and architecture,
0:42:56 > 0:43:01but it scores well both on transport links and relative affordability.
0:43:04 > 0:43:07David and Christine, who were expecting their first child,
0:43:07 > 0:43:13had been renting a one-bedroom flat. So buying this two-bedroom house with a front and back garden
0:43:13 > 0:43:19in a leafy suburb for 197,000 seemed like a very good step indeed.
0:43:21 > 0:43:24- We have a garage. Can you believe that?- Do you love that?
0:43:24 > 0:43:26It's great, it's great.
0:43:26 > 0:43:29I never thought I would ever have a house with a garage.
0:43:29 > 0:43:34I'm just delighted that we've got somewhere that isn't a pokey one-bedroom flat
0:43:34 > 0:43:37with lots of prams and things in the middle of the room.
0:43:37 > 0:43:41Eight months on, did things work out as well as they'd hoped?
0:43:41 > 0:43:45Has David got something more exciting than a garage to show us?
0:43:48 > 0:43:52The outside shows signs that the house is starting to blossom,
0:43:52 > 0:43:57sporting new windows and patio doors into the garden.
0:43:57 > 0:44:01Time was very short at the beginning, because Christine was about to give birth.
0:44:08 > 0:44:13We just about managed to get the nursery decorated
0:44:13 > 0:44:16and all three of us for the first week were sleeping in the nursery.
0:44:22 > 0:44:27And yes, little Sarah Jane was born just over seven months ago.
0:44:27 > 0:44:31She's fit, healthy and looking very happy in her new home.
0:44:31 > 0:44:36Living in the property was quite difficult to do with a newborn baby
0:44:36 > 0:44:41while a renovation was going on, I won't deny that. But it's all worthwhile once it's all done.
0:44:41 > 0:44:45After the nursery was sorted out, David tackled the downstairs area.
0:44:45 > 0:44:52I'm glad to report they didn't knock down all the internal walls and go completely open plan.
0:45:02 > 0:45:05But they did go for the kitchen-diner option.
0:45:09 > 0:45:11Well, this is our new kitchen.
0:45:11 > 0:45:15The biggest change that's happened is this wall here has been knocked through.
0:45:15 > 0:45:18Then after that was done, after a lot of tidying up was done
0:45:18 > 0:45:23from all the mess that was created by that, it was just a case of putting in a new kitchen.
0:45:23 > 0:45:26We've got new worktops, a nice little island here.
0:45:26 > 0:45:29This here is where the door was to this room.
0:45:29 > 0:45:35We've moved the entrance to the kitchen area to here, which again I think makes more of an open space.
0:45:35 > 0:45:40And so this is it, and Christine really enjoys cooking here so that's great.
0:45:40 > 0:45:42This works really well.
0:45:42 > 0:45:46Not only does it make the kitchen feel so much more spacious, but it's
0:45:46 > 0:45:52what David and Christine wanted - being able to see baby Sarah Jane while they're busy in the kitchen.
0:45:59 > 0:46:05The hardest time during the renovation was being away from David, actually, having to stay
0:46:05 > 0:46:10with family and friends while he decorates the house. That was quite difficult.
0:46:10 > 0:46:14The first couple of months were very weird, very, very strange
0:46:14 > 0:46:19and it's a big thing to adjust to, having a new child. No-one actually tells you
0:46:19 > 0:46:26what it's going to be like and I think even if they tried, they wouldn't be able to get it across.
0:46:26 > 0:46:28But now things have settled down a little bit
0:46:28 > 0:46:33and I've got used to being a dad, it's fantastic. I really love it.
0:46:33 > 0:46:39Parenting might be great, but the downside is that it inevitably eats into your renovation time.
0:46:39 > 0:46:42Along with a full-time job and living in the house,
0:46:42 > 0:46:46David hasn't quite been able to finish off all the rooms upstairs.
0:46:50 > 0:46:56Well, the bedroom used to be quite old-fashioned, so we've changed the colour scheme.
0:46:56 > 0:47:00We've gone for chocolate brown and cream, and it happens to be
0:47:00 > 0:47:03Megan, our cat's, favourite room and she sleeps in here all the time.
0:47:03 > 0:47:10So, Megan the cat certainly likes her new home and the extra space after living in a one-bed rented flat.
0:47:10 > 0:47:12How about her owners?
0:47:12 > 0:47:15It's just wonderful. It's lovely to have all the space,
0:47:15 > 0:47:18particularly because we don't have anyone above us,
0:47:18 > 0:47:23so we can't hear the noise from footsteps and loud music from above.
0:47:23 > 0:47:27We had a lot of stuff in storage which we are now slowly being able
0:47:27 > 0:47:34to move out and put on shelves and we're rapidly filling the space.
0:47:34 > 0:47:36I've no idea how we the lived in such a small flat!
0:47:38 > 0:47:41But, of course, a step up involves more money.
0:47:41 > 0:47:44Not only did they have the cost of the house at auction
0:47:44 > 0:47:49of 197,000, they obviously also had the renovation costs.
0:47:49 > 0:47:52Initially they aimed to do the work for just £5,000.
0:47:52 > 0:47:57We quickly spent 11 in the first two months.
0:47:57 > 0:48:03In the last couple of months, we've managed to extend our budget a little bit in order to get the new windows
0:48:03 > 0:48:08and I think we've probably in total spent about £15,000, £16,000.
0:48:08 > 0:48:10It was thanks, in part, to David's gran
0:48:10 > 0:48:12that they could afford the extra expenditure.
0:48:12 > 0:48:17It now takes their total investment up to nearly 215,000.
0:48:17 > 0:48:20Clearly, in terms of quality of life, the move
0:48:20 > 0:48:25has been worth it for them. But has it also been a good investment?
0:48:25 > 0:48:27What do two local estate agents think?
0:48:27 > 0:48:30Well, it's the second time I've seen the property and
0:48:30 > 0:48:33since I first saw it, there has been a lot of work done.
0:48:33 > 0:48:35They're definitely going in the right direction.
0:48:35 > 0:48:38I've had a look around. Nice and spacious, good size.
0:48:38 > 0:48:42There's still a few bits to be done before it's ready for marketing.
0:48:42 > 0:48:47David and Christine were over the moon to get this house in the first place, but will they be just
0:48:47 > 0:48:53as happy with the estate agents' valuations after investing £215,000 of their hard-earned money here?
0:48:53 > 0:48:58If I was going to market this property, I'd suggest a marketing price in the region of £275,000.
0:48:58 > 0:49:04I would market the property at £259,950 to achieve 250,000.
0:49:04 > 0:49:10Well, that's not bad and could see a return of at least £30,000,
0:49:10 > 0:49:14so it seems a sound investment. But what do they think of that?
0:49:14 > 0:49:16Well, 250 sounds about right.
0:49:16 > 0:49:21The other one, wow! But, yeah...
0:49:21 > 0:49:25But we don't really intend to be selling for any time soon,
0:49:25 > 0:49:29so it's good to know, but not particularly relevant right now.
0:49:31 > 0:49:35Long term, David, Christine and Sarah Jane want to stay here
0:49:35 > 0:49:39for at least ten years. But what are their short-term plans?
0:49:39 > 0:49:44Just relaxing, enjoying our home, enjoying SJ growing up.
0:49:44 > 0:49:50- Building an outbuilding, building a loft conversion.- Yeah, yeah, yeah.
0:49:50 > 0:49:53Putting some carpets down, doing up the bathroom.
0:49:53 > 0:49:56- Yeah, David's got a lot of work! - Not relaxing too much, then!
0:49:59 > 0:50:05For the time being, I think the job they've done here is certainly good enough for them
0:50:05 > 0:50:11to just take a break and enjoy some time with baby Sarah Jane and their spacious new surroundings.
0:50:19 > 0:50:25Back in Wales and on the beautiful Gower Peninsula, there was a three-bedroom detached property.
0:50:25 > 0:50:30It looked just the right place for retired businessman, John, to get stuck into.
0:50:30 > 0:50:33It wasn't in bad condition and was very roomy.
0:50:33 > 0:50:37After a few tweaks, John was planning to turn it into a holiday cottage
0:50:37 > 0:50:42with four bedrooms, one of them suitable for disabled guests.
0:50:44 > 0:50:49He'd bought this cottage for 155,000. So, just four months later,
0:50:49 > 0:50:52was it ready in time for the fast approaching summer season?
0:50:54 > 0:50:56Well, externally, it's looking great.
0:50:56 > 0:51:00The front has a new porch along with a complete overhaul.
0:51:00 > 0:51:07And at the back, not only has John extended slightly, but the rather unsightly metal walkway has gone.
0:51:09 > 0:51:11What about inside?
0:51:11 > 0:51:14Well, it's looking pretty good, too.
0:51:23 > 0:51:26But has it all gone to plan?
0:51:26 > 0:51:31One of our major unplanned changes was the kitchen.
0:51:31 > 0:51:35Originally, we planned to keep it, but the more I looked at the horrible green panelling and that
0:51:35 > 0:51:41grotesque breakfast bar, the more I became convinced we should change it.
0:51:41 > 0:51:44So, we ripped it out and replaced it with a fitted kitchen,
0:51:44 > 0:51:49brand new appliances, tiling on the wall and we opened up the
0:51:49 > 0:51:53light coming into the kitchen by taking the bank back.
0:51:55 > 0:52:01While the kitchen changes may not have been on the original plan, creating a downstairs bedroom
0:52:01 > 0:52:07and nearby shower room suitable for disabled visitors was always near the top of John's to do list.
0:52:12 > 0:52:16As were the changes on the first floor.
0:52:16 > 0:52:20Upstairs, we've upgraded this bathroom,
0:52:20 > 0:52:25tiled throughout and put in new sanitary ware, but we really made the changes in this bathroom.
0:52:29 > 0:52:33Here we've put in the shower that was originally downstairs
0:52:33 > 0:52:37and we've tiled throughout and put in new sanitary ware.
0:52:37 > 0:52:42We've also blocked up the old patio window
0:52:42 > 0:52:45and taken away the walkway,
0:52:45 > 0:52:48enabling us to create this bathroom.
0:52:48 > 0:52:54With four bedrooms now, so possibly up to eight people staying, two bathrooms are pretty essential
0:52:54 > 0:52:58as John hopes to achieve the top local holiday rating.
0:53:02 > 0:53:04We haven't had the assessment visit
0:53:04 > 0:53:09from the Welsh tourist board, Visit Wales, yet,
0:53:09 > 0:53:15but we've replicated the standard we used in the other cottage which has gained five-star rating
0:53:15 > 0:53:19and we've no reason to think that this won't be rated as five-star as well.
0:53:19 > 0:53:25And this high-quality finish is already paying dividends.
0:53:25 > 0:53:32The first guests have just left after their week here and from
0:53:32 > 0:53:36next weekend, we're fully booked through to the middle of September.
0:53:36 > 0:53:40So, that's a promising start and should mean this holiday let
0:53:40 > 0:53:45will go from strength to strength. But John can't take all the credit for the changes here.
0:53:45 > 0:53:50His wife helped with the interior design and it was builder Keith who did the bulk of the work.
0:53:50 > 0:53:56I first met John on the last project we worked on, where he did a holiday conversion next to his property.
0:53:56 > 0:54:01We both worked on that and then moved on to this job after that, really.
0:54:01 > 0:54:04The work took quite a tight schedule on it,
0:54:04 > 0:54:10but the finished product we've come up with, we're very happy with and I believe John's happy with as well.
0:54:10 > 0:54:13With two successful projects under their belts,
0:54:13 > 0:54:16are the Keith-and-John double act likely to do more together?
0:54:16 > 0:54:20It's good to work with John. He gets stuck in himself as well.
0:54:20 > 0:54:26He's always here on the job, so any consulting to do can be done immediately
0:54:26 > 0:54:31and he's always receptive to our ideas and we listen to his as well. It's great.
0:54:31 > 0:54:34They certainly make a strong combination, but with all the changes
0:54:34 > 0:54:38and a pretty high specification, it must have all cost a bit.
0:54:40 > 0:54:44We paid 155 in the auction
0:54:44 > 0:54:50and if I've spent 30 plus 10,000 to...
0:54:50 > 0:54:53So, we're probably up to 195.
0:54:53 > 0:54:58So, has he got value for money on his £195,000 spend?
0:54:58 > 0:55:00And, more importantly,
0:55:00 > 0:55:05how will the property do on the holiday rental market?
0:55:05 > 0:55:09We asked a local estate agent and a holiday letting agent to tell us more.
0:55:09 > 0:55:12Very impressed with what the owner has done to the property throughout
0:55:12 > 0:55:15and he's done it to a very high standard.
0:55:15 > 0:55:19Noticeably, the back part of the property with the walkway being removed, that's a great idea.
0:55:19 > 0:55:22That's letting quite a lot of light into the kitchen.
0:55:22 > 0:55:25And the changing to the rear of the property
0:55:25 > 0:55:29with the small addition to the back I think is a good feature.
0:55:29 > 0:55:31But how would it fare on the open market?
0:55:31 > 0:55:35Has John invested his £195,000 wisely?
0:55:35 > 0:55:41If we were to put the property on the market now, we would be looking at an asking price of £240,000.
0:55:41 > 0:55:46I, myself, had put a value in my head of 250,000.
0:55:46 > 0:55:54Even if the valuation isn't quite as high as John hoped, there's still a pre-tax profit of over £40,000.
0:55:54 > 0:55:59But this is all about the holiday market, so what does the lettings agent make of it?
0:55:59 > 0:56:01What I like about this place is the fact that
0:56:01 > 0:56:05they've split the living accommodation on to two floors.
0:56:05 > 0:56:09They've got bedrooms on both the upper floor and the ground floor. That's great for families
0:56:09 > 0:56:13and generations of family when sometimes they want a little bit of space.
0:56:13 > 0:56:17I would hope that in the first year, it would achieve at least 15 weeks.
0:56:17 > 0:56:23Would 15 weeks of occupancy actually bring in enough return?
0:56:23 > 0:56:28Maximum peak advertised price would be in the region of 950 per week.
0:56:28 > 0:56:35And Karen reckons that even in the low season, you could get as much as £650 per week.
0:56:35 > 0:56:40Assuming most of the 15 weeks will be at the mid-to-peak income time,
0:56:40 > 0:56:44John should get a return of between £10,000 to £15,000 per year.
0:56:44 > 0:56:47So, while holidaymakers relax here,
0:56:47 > 0:56:50John will hopefully be making money, which is good news!
0:56:53 > 0:56:58Well, that's it for today, but don't despair, there are plenty more properties out there.
0:56:58 > 0:57:01Join us next time for more Homes Under The Hammer.
0:57:01 > 0:57:03- We will see you then. - Goodbye.- Goodbye.
0:57:09 > 0:57:13Subtitles by Red Bee Media Ltd
0:57:13 > 0:57:18E-mail subtitling@bbc.co.uk