0:00:02 > 0:00:04Buying a property is often a long, drawn out process,
0:00:04 > 0:00:07but there is a way to tighten up the whole thing.
0:00:07 > 0:00:10It can take months of stress to seal a deal and bag your dream house.
0:00:10 > 0:00:13Alternatively, you can go along to auctions
0:00:13 > 0:00:16where it's all crammed into a few action-packed minutes
0:00:16 > 0:00:18when you buy your home under the hammer.
0:00:44 > 0:00:46Buying at auction can be quick,
0:00:46 > 0:00:50but it's important to take your time and do your research.
0:00:50 > 0:00:53Many of the properties on sale may need drastic redevelopment.
0:00:53 > 0:00:57So, let's see what excited the buyers on today's show.
0:00:58 > 0:01:01I was concerned that there could be damp
0:01:01 > 0:01:04and all sorts of problems in this Cornish bungalow.
0:01:04 > 0:01:07Actually, it's looking pretty good.
0:01:08 > 0:01:12On reflection, you might wish you hadn't bought this Southampton semi.
0:01:12 > 0:01:17Mirror, mirror on the wall, this house just needs an overhaul.
0:01:18 > 0:01:23And, in Wales, I make an alarming discovery in this terraced property.
0:01:23 > 0:01:27Whenever I see one of these I want to turn it on and check it works,
0:01:27 > 0:01:28but better not!
0:01:29 > 0:01:33All these properties went to auction and we'll find out who bought them
0:01:33 > 0:01:36and what they paid, when they went under the hammer.
0:01:40 > 0:01:44OK, I know budget airlines can whisk you off almost anywhere
0:01:44 > 0:01:47for about the cost of half a tank of petrol,
0:01:47 > 0:01:51but I bet, like me, you'd be just as happy in the South West,
0:01:51 > 0:01:53with its beautiful scenery and beaches.
0:01:53 > 0:01:55Today I'm in Liskeard.
0:01:55 > 0:01:58So, in somewhere as lovely as this,
0:01:58 > 0:02:02a property which had a guide price of just 85,000 quid
0:02:02 > 0:02:06had to be a complete hovel, didn't it?
0:02:07 > 0:02:08Not somewhere...
0:02:08 > 0:02:10that looks like that.
0:02:10 > 0:02:12Three to four bedroomed
0:02:12 > 0:02:14detached dormer bungalow,
0:02:14 > 0:02:17lovely grounds, out buildings.
0:02:17 > 0:02:19There's got to be a catch.
0:02:19 > 0:02:22From here, though, I'm impressed.
0:02:22 > 0:02:24Splendid though it appears on the outside,
0:02:24 > 0:02:29I've seen enough properties to know that however glorious the exterior may look,
0:02:29 > 0:02:33there could be a disaster lurking behind the front door.
0:02:33 > 0:02:38So, tentatively through the front door expecting cascades of water
0:02:38 > 0:02:41down the walls and the smell like a sewer.
0:02:41 > 0:02:45But, no! Actually, it's looking pretty good.
0:02:45 > 0:02:49Nice big entrance hall here which you wouldn't necessarily expect.
0:02:49 > 0:02:50Stairs up to the bedrooms there.
0:02:50 > 0:02:53We've got more rooms dotted about here.
0:02:53 > 0:02:55It all seems in pretty good nick, I have to say.
0:02:55 > 0:02:57The painting on the walls seems OK.
0:02:57 > 0:03:00A few cracks here and there but I don't think that's too major.
0:03:00 > 0:03:03This kind of room makes the most of the position here.
0:03:03 > 0:03:06You've got views on to the garden. It's nice and light, it's airy.
0:03:06 > 0:03:08Nice clean floor that you could strip back.
0:03:08 > 0:03:11This is an interesting feature. What's that?
0:03:12 > 0:03:13Oh!
0:03:13 > 0:03:16It's the kitchen! How cute.
0:03:16 > 0:03:19I wonder how many other interesting features I'll find.
0:03:19 > 0:03:22Clearly this property has been cherished over the years
0:03:22 > 0:03:26and it's very well maintained, if a tad dated.
0:03:29 > 0:03:32Off the hall there's a second large reception room,
0:03:32 > 0:03:37plus the first of four bedrooms and a cork-clad toilet.
0:03:38 > 0:03:43As this is a dormer bungalow, the accommodation continues upstairs,
0:03:43 > 0:03:47with three more bedrooms and this bathroom.
0:03:47 > 0:03:50So, the house itself then, extremely likeable,
0:03:50 > 0:03:55but what makes it absolutely wonderful is the garden.
0:03:55 > 0:03:57It is...enormous!
0:03:58 > 0:04:03And it's been carefully maintained. Spectacular!
0:04:03 > 0:04:09There's almost a third of an acre here, but if that gets you dreaming of flinging open the doors
0:04:09 > 0:04:13on a hot summer's evening and heading outside, then think again.
0:04:14 > 0:04:19Well, I love houses where there's easy access from the inside to the garden and in this case,
0:04:19 > 0:04:23straight out from the lounge on to the patio.
0:04:23 > 0:04:25Not quite!
0:04:25 > 0:04:27MUSIC: "Jump" by Van Halen
0:04:27 > 0:04:28There's a three-foot drop!
0:04:28 > 0:04:30# Might as well jump... #
0:04:30 > 0:04:33That will certainly catch you out if you weren't expecting it!
0:04:33 > 0:04:37Well, it gives spilling out on to the lawn a whole new meaning.
0:04:37 > 0:04:42Joking aside, you'd certainly need to install some steps as soon as possible,
0:04:42 > 0:04:45or this is an accident waiting to happen.
0:04:45 > 0:04:49So, it's all pretty splendid, but, of course, there is a problem.
0:04:49 > 0:04:50Now, what do you think it is?
0:04:50 > 0:04:54A - it's on the route of the new Liskeard bypass,
0:04:54 > 0:05:00B - it's suffering from an attack of the lesser-known Cornwall wood boring beetle,
0:05:00 > 0:05:03or, C - it's made of mundic block.
0:05:03 > 0:05:05Well, the first two are, of course, rubbish.
0:05:05 > 0:05:08It is, in fact, C. It's made of mundic block.
0:05:08 > 0:05:12Now, in case you don't remember, mundic block is actually pretty much stonework
0:05:12 > 0:05:15that's been made from the residues of the mines in the area.
0:05:15 > 0:05:20Often it's a major problem. The brickwork starts to crumble and your house falls down.
0:05:20 > 0:05:23Insurers don't like it and neither do mortgage lenders,
0:05:23 > 0:05:25so you have to have the property checked out.
0:05:25 > 0:05:28Now, this property has got a B grade for mundic block,
0:05:28 > 0:05:32which means it's, sort of, mediumly serious, but, whatever,
0:05:32 > 0:05:35it is a big fly in the ointment.
0:05:36 > 0:05:39I've arranged for a local estate agent
0:05:39 > 0:05:41to cast his expert eyes over the property.
0:05:41 > 0:05:43What boxes does it tick for him?
0:05:47 > 0:05:51Um, the type of property sells well here at the moment.
0:05:51 > 0:05:53Dormer bungalows are very popular.
0:05:53 > 0:05:57Outside the decor is good, low maintenance,
0:05:57 > 0:05:58it's recently been painted.
0:05:58 > 0:06:03Generous gardens. It's quite private to the front of the property.
0:06:03 > 0:06:06Internally, most people would probably want to update the kitchen.
0:06:06 > 0:06:09It does have a Rayburn in it, plenty of character features.
0:06:09 > 0:06:12Some very good timber floors in there, as well.
0:06:12 > 0:06:15Considering the land and the condition of the bungalow
0:06:15 > 0:06:20the guide price of just £85,000 does seem pretty reasonable.
0:06:20 > 0:06:23That could reflect the mundic construction
0:06:23 > 0:06:25but that's not the only issue here.
0:06:25 > 0:06:28There is a covenant on this particular property which says
0:06:28 > 0:06:32that if the property is levelled, you can only reinstate one property,
0:06:32 > 0:06:35so that will put off quite a few developers.
0:06:35 > 0:06:40So, I hope whoever took on this bungalow had read the legal pack thoroughly.
0:06:40 > 0:06:43How much could it be worth once refurbished
0:06:43 > 0:06:47and could the real return be in demolishing it and starting again?
0:06:49 > 0:06:53Obviously, this property is a mundic, so it may be flattened entirely
0:06:53 > 0:06:55and a completely new property put on it,
0:06:55 > 0:06:59in which case, if you put a decent-sized four-bedroom property,
0:06:59 > 0:07:01then you would probably be looking in the mid 300s.
0:07:01 > 0:07:04As it is currently, with a new bathroom,
0:07:04 > 0:07:07new kitchen and decor being done inside,
0:07:07 > 0:07:12then we would think you're probably looking at around 175.
0:07:15 > 0:07:19Well, what is there not to like about this property?
0:07:19 > 0:07:20A nice house in a glorious location.
0:07:20 > 0:07:24You just have to be careful about that rather nasty step at the back
0:07:24 > 0:07:26which could catch you out at a dinner party!
0:07:26 > 0:07:30Apart from that, the only serious issue, of course, is the mundic,
0:07:30 > 0:07:33which definitely limits the potential for raising finance on it.
0:07:33 > 0:07:36Still, at £85,000 as the guide price,
0:07:36 > 0:07:40I'm sure it was a very popular lot at the auction.
0:07:40 > 0:07:43Six Gypsy Lane. It's a detached three-or-four-bedroom bungalow.
0:07:43 > 0:07:47A fair proportion are thinking of bowling it right over, swing shovel,
0:07:47 > 0:07:51and putting on a lovely house like the many that are in the vicinity.
0:07:51 > 0:07:53Who's going to say 100 straight in?
0:07:53 > 0:07:56Thank you, sir. 100. 100 I've got. At one. At 100.
0:07:56 > 0:07:59We've got two on my right here. 102.
0:07:59 > 0:08:01102, 105.
0:08:01 > 0:08:06I'm going to concentrate on two for a moment and I'll come back to everyone else. 110.
0:08:06 > 0:08:12115, 120. 120. How about 130? 130.
0:08:12 > 0:08:16140, 142, 44...
0:08:16 > 0:08:1946, 48. Where are you?
0:08:19 > 0:08:22150, 152. New face.
0:08:22 > 0:08:25154, 156, 158,
0:08:25 > 0:08:31160, 162, 164, 166,
0:08:31 > 0:08:33166. You're in, sir. Front row.
0:08:33 > 0:08:36166, 168. Another new face across here.
0:08:36 > 0:08:39170, 175, 175.
0:08:39 > 0:08:40180.
0:08:40 > 0:08:43190, 200,
0:08:43 > 0:08:44210.
0:08:44 > 0:08:47Looking for 215.
0:08:47 > 0:08:50215, 220.
0:08:50 > 0:08:53221?
0:08:53 > 0:08:55At 220. A half if it'll help.
0:08:55 > 0:08:59220 and a half. 221.
0:08:59 > 0:09:00And a half? 221 and a half.
0:09:00 > 0:09:03222.
0:09:03 > 0:09:06222 and a half. 223, 223 and a half.
0:09:06 > 0:09:08224. 224 and a half.
0:09:08 > 0:09:11225.
0:09:11 > 0:09:14Once. 225 twice.
0:09:14 > 0:09:15225 and a half. 226.
0:09:15 > 0:09:17226.
0:09:17 > 0:09:20226 and a half. 227.
0:09:20 > 0:09:24227 and a half, 228 and a half. 229.
0:09:24 > 0:09:27229 and a half. 230. At 230.
0:09:27 > 0:09:30I'm feeling for you, sir, I honestly am.
0:09:30 > 0:09:32At 230 we've got on my right.
0:09:32 > 0:09:35The gentleman is going to have it. Last chance then.
0:09:35 > 0:09:38Looking around, in case on the off chance, there's anyone else.
0:09:38 > 0:09:43At 230. Once, twice, selling this time. It's your home, sir.
0:09:43 > 0:09:49For £230,000, that winning bid was made by Ken sitting in the front row with his wife, Jill,
0:09:49 > 0:09:50and daughter, Helen.
0:09:50 > 0:09:53I met dad and daughter back at the bungalow.
0:09:53 > 0:09:57- Ken, Helen, good to meet you both. - Hello.- Congratulations.- Thank you.
0:09:57 > 0:10:01- Thank you very much.- So, why did you want to buy this place?
0:10:01 > 0:10:05Well, basically, we live at number eight,
0:10:05 > 0:10:07which is next door.
0:10:07 > 0:10:12- Oh, right. What, just over there? - Yeah, just up over the grass there.
0:10:12 > 0:10:17And we'd seen hundreds of people looking round the place
0:10:17 > 0:10:22and there were lots of developers involved and that and we thought,
0:10:22 > 0:10:26well, the only way to preserve our own privacy and our large site,
0:10:26 > 0:10:29was to purchase it and control it ourselves.
0:10:29 > 0:10:34- Wow!- We actually went to this sale with the sole intention of purchasing it.
0:10:34 > 0:10:38So, you would have paid, within reason, any amount?
0:10:38 > 0:10:41Well, obviously, if someone else went with the same intentions
0:10:41 > 0:10:43we'd have had to stop somewhere
0:10:43 > 0:10:48- but we were a long way short of what we were prepared to pay...- Wow!
0:10:48 > 0:10:52- If we had to.- So, it was a joint family decision to buy it, was it?
0:10:52 > 0:10:53Oh, yes, yes.
0:10:53 > 0:10:57I was looking to invest in some property anyway
0:10:57 > 0:11:00and then this came up so it was an ideal opportunity, really,
0:11:00 > 0:11:02to sort of go in with Mum and Dad.
0:11:02 > 0:11:07And obviously then with this property there's lots of options available, whether we develop it,
0:11:07 > 0:11:09or, if next door gets too big for Mum and Dad,
0:11:09 > 0:11:12I can push them down here and I can take over their property!
0:11:12 > 0:11:14So, lots of different options.
0:11:14 > 0:11:17Well, they've kept the developers at bay,
0:11:17 > 0:11:21but it's not just the bungalow they bought.
0:11:21 > 0:11:24That extra third of an acre increases Ken's land
0:11:24 > 0:11:27to one-and-a-quarter acres of Cornish countryside.
0:11:27 > 0:11:30And in terms of utilising the property, then,
0:11:30 > 0:11:32what are you going to do with it in the short term?
0:11:32 > 0:11:36When we actually purchased it, we didn't have a clue.
0:11:36 > 0:11:39We went to the auction purely with the aim of purchasing it.
0:11:39 > 0:11:44Once purchased we thought, well, it was a shame to leave it empty,
0:11:44 > 0:11:48so we have decided to, in the short term, to let it.
0:11:48 > 0:11:53Are you going to tart it up, spend any money, do anything at all, short term?
0:11:53 > 0:11:56Basically, we're going to redecorate, recarpet upstairs,
0:11:56 > 0:11:58bathroom we're going to change.
0:11:58 > 0:12:00Kitchen, any plans for this?
0:12:00 > 0:12:02Are you going to leave it as it is?
0:12:02 > 0:12:04Probably a bit of tiling in here.
0:12:04 > 0:12:09- Yeah. We probably... Belfast sinks are in fashion.- Yeah, nice.
0:12:09 > 0:12:13So we'll probably leave the kitchen very much as it is, actually.
0:12:13 > 0:12:17So, Ken, Jill and Helen now have control of their future
0:12:17 > 0:12:19but it could have ended so differently
0:12:19 > 0:12:23and Ken had planned for the worst-case scenario.
0:12:23 > 0:12:28As far as we were concerned, the only way to control it is you have to own it
0:12:28 > 0:12:31and if we had lost it at the auction,
0:12:31 > 0:12:33if it had gone to way above price,
0:12:33 > 0:12:37well, obviously we could have then, if it was a developer,
0:12:37 > 0:12:40sold them our place and we could have moved on if necessary,
0:12:40 > 0:12:44but we didn't really want to because we like the area and,
0:12:44 > 0:12:47believe you me, I've only ever moved once in my life
0:12:47 > 0:12:50and it took us three months to move up here
0:12:50 > 0:12:51because I'm a bit of a magpie.
0:12:51 > 0:12:56- Are you? What sort of things do you collect?- I'm mainly interested in old vehicles
0:12:56 > 0:13:01and because I worked for GPO-come-BT all my life, until I took early retirement,
0:13:01 > 0:13:03I've got three old GPO telephone vans.
0:13:03 > 0:13:07- Oh, wow!- The trouble is, I never seem to have time
0:13:07 > 0:13:10to play with my hobby because always something like this crops up
0:13:10 > 0:13:13and you start with other projects again!
0:13:13 > 0:13:17- Well, listen, congratulations. - Thank you very much.- Thank you.
0:13:17 > 0:13:18And good luck with it all
0:13:18 > 0:13:22- and we'll look forward to seeing how you get on.- Thank you.
0:13:22 > 0:13:25You know, with a view like this it's little wonder
0:13:25 > 0:13:31that Ken didn't want any developers ringing the changes round here.
0:13:31 > 0:13:33So here's something to think about.
0:13:33 > 0:13:38How much would you spend to protect the area around where you live?
0:13:38 > 0:13:43For Helen, Ken and Jill, it was a quarter of a million pounds, almost!
0:13:43 > 0:13:48Wow! Lots of options in terms of what they might do to it, including knocking it down.
0:13:48 > 0:13:51Now, that is an expensive way to add to your garden,
0:13:51 > 0:13:54but something tells me I don't think they'd care.
0:13:54 > 0:13:57Good luck to them. Find out how they get on later in the show.
0:14:02 > 0:14:06For the next property under the hammer, I'm heading to Hampshire.
0:14:08 > 0:14:11Just five miles from Southampton and I'm in Totten,
0:14:11 > 0:14:13a town popular with commuters.
0:14:13 > 0:14:15From here, you can be in London Waterloo
0:14:15 > 0:14:17in just over an hour and a half
0:14:17 > 0:14:21and Southampton is less than 20 minutes away by train.
0:14:21 > 0:14:23You also have strong road links here.
0:14:23 > 0:14:25Now, the M3 is easily accessible.
0:14:25 > 0:14:27So, top marks for transport,
0:14:27 > 0:14:30but how much is a three-bedroom house going to cost in this area?
0:14:30 > 0:14:36Well, this property was on the market for 180,000 with no takers.
0:14:36 > 0:14:43It then went to auction and the guide price just 125,000 to 130,000.
0:14:43 > 0:14:46On my way to the distinctive side entrance,
0:14:46 > 0:14:51I notice that most of the windows and doors seem relatively new.
0:14:51 > 0:14:53You walk into this hallway and through here
0:14:53 > 0:14:57and you've got a lounge to the right which is a really good size,
0:14:57 > 0:14:59and in here is a second reception room.
0:14:59 > 0:15:01You've got this lovely big old sash window
0:15:01 > 0:15:03looking onto the side conservatory,
0:15:03 > 0:15:06and then, well, there's this fireplace
0:15:06 > 0:15:08that doesn't really go with the style of the house.
0:15:08 > 0:15:10And up here a rather interesting pelmet!
0:15:10 > 0:15:13I think at one time there would have been a curtain up there
0:15:13 > 0:15:15to divide this room
0:15:15 > 0:15:18and that's because, down there, you've got the kitchen.
0:15:18 > 0:15:21It certainly doesn't flow at the moment.
0:15:21 > 0:15:26I'd remove these walls here - it's a bit like a triangle - to make better use of the space.
0:15:26 > 0:15:29As I go round the bend, physically, not mentally,
0:15:29 > 0:15:31I come to the spacious kitchen
0:15:31 > 0:15:33which is in reasonable condition,
0:15:33 > 0:15:36but, unfortunately, right next to that kitchen is the bathroom.
0:15:36 > 0:15:39That's very common in a house of this age.
0:15:39 > 0:15:41The obvious solution is to move it upstairs,
0:15:41 > 0:15:43especially since there are three bedrooms.
0:15:49 > 0:15:52Still, going out through the conservatory,
0:15:52 > 0:15:54I find a well-sized garden.
0:15:54 > 0:15:59Rubbish apart, there's plenty of space for the keenest of gardeners.
0:15:59 > 0:16:02But there's also the first sign of a potential problem.
0:16:02 > 0:16:06Now, that sagging roof looks serious and needs investigating.
0:16:10 > 0:16:15So, upstairs we've got three bedrooms. There's a really big space across the landing.
0:16:15 > 0:16:20We've got this bedroom here which I'd easily call a double.
0:16:20 > 0:16:21And bedroom three is through here.
0:16:21 > 0:16:25Now, my guess is that this was once a bathroom
0:16:25 > 0:16:29and that's exactly what I would turn this back into.
0:16:29 > 0:16:32That is easily achieved because you could create a corridor
0:16:32 > 0:16:36off the landing into that bedroom through there, along the back wall.
0:16:36 > 0:16:39I know it would eat into the square footage of the space,
0:16:39 > 0:16:42but I think it would be worth moving that bathroom up here.
0:16:42 > 0:16:45I think it would make this house much more saleable.
0:16:45 > 0:16:49Apart from the cost of moving the bathroom upstairs,
0:16:49 > 0:16:52there are other renovation costs that need bearing in mind.
0:16:52 > 0:16:54These include various holes in the plaster,
0:16:55 > 0:17:01some missing roof guttering and the fact that the rear extension is only a single skin of bricks deep,
0:17:01 > 0:17:04which would fail modern building regulations.
0:17:08 > 0:17:12Add to that the fact that the house looks tired and passe
0:17:12 > 0:17:16and it leaves me feeling the writing is on the wall here.
0:17:16 > 0:17:22Mirror, mirror on the wall, this house just needs an overhaul!
0:17:22 > 0:17:24Ah, yes, but overhauls mean expense.
0:17:24 > 0:17:28I've invited a local estate agent to tell me how much it would cost
0:17:28 > 0:17:30to renovate this three-bedroom house.
0:17:30 > 0:17:34Would it be worth it, considering the auction guide price
0:17:34 > 0:17:37was between 125,000 to 130,000?
0:17:39 > 0:17:44I'd say, for this property, you'd look to spend probably about £30,000.
0:17:44 > 0:17:47I would say that is a minimum figure and it could go in excess of that.
0:17:48 > 0:17:53So, an expensive renovation mostly caused by two big jobs,
0:17:53 > 0:17:56the first being the sagging roof.
0:17:56 > 0:18:00It's a classic example of original slate tiles
0:18:00 > 0:18:02being replaced by concrete tiles
0:18:02 > 0:18:05and a lack of additional roof support,
0:18:05 > 0:18:08causing, basically, the house to feel squashed.
0:18:08 > 0:18:11You probably need further roof supports
0:18:11 > 0:18:13and that should solve the problem.
0:18:14 > 0:18:19So, with an auction guide price of between 125,000 to 130,000
0:18:19 > 0:18:22and a renovation cost of around £30,000,
0:18:22 > 0:18:27what could the property be worth once all the work's done?
0:18:27 > 0:18:31You'd look to sell this property at around £165,000 to £170,000.
0:18:32 > 0:18:36And if the new owner wants to rent it out, how much could it go for?
0:18:36 > 0:18:42I think you'd rent this out probably at around £650 to £700 per calendar month.
0:18:44 > 0:18:48A sagging roof, a single-skin extension,
0:18:48 > 0:18:50a very odd layout upstairs.
0:18:50 > 0:18:54This house is going to require a lot of structural work.
0:18:54 > 0:18:56Someone was up for the job, though.
0:18:56 > 0:18:58Let's find out who it was as we go to auction.
0:19:02 > 0:19:05I'm going to give you the chance on this, ladies and gents,
0:19:05 > 0:19:08an incredible opportunity at just 90,000.
0:19:08 > 0:19:10£90,000.
0:19:10 > 0:19:1490,000 at the back. I'll take it up in thousand pounds.
0:19:14 > 0:19:1690,000 I've got.
0:19:16 > 0:19:17I need 91 from someone now.
0:19:17 > 0:19:22Thank you. 92, 92 we have got. 93?
0:19:22 > 0:19:2493 on the left-hand side.
0:19:24 > 0:19:2694 bid, thank you.
0:19:26 > 0:19:2895, sir?
0:19:28 > 0:19:3095 on my left-hand side.
0:19:30 > 0:19:3596,000 from you, or somebody else to come in?
0:19:35 > 0:19:36Original one back, 96,000.
0:19:36 > 0:19:3997,000 on my left-hand side.
0:19:39 > 0:19:4398 I have got. 99,000 over here.
0:19:43 > 0:19:48Round it up to 100, sir, it might do the job... Shaking his head.
0:19:48 > 0:19:51You were the original bidder, I'll give you a chance with £500.
0:19:51 > 0:19:5299 and a half.
0:19:52 > 0:19:55Yeah, 99,500.
0:19:55 > 0:19:57Back to you, sir, at the hundred.
0:19:57 > 0:20:02It's with you at 100,000. The same chance at 100,500?
0:20:02 > 0:20:06He comes back very late at 100,500.
0:20:06 > 0:20:10At 101. The gentleman saying yes, at £101,000.
0:20:10 > 0:20:16Same chance for you at 101,500.
0:20:16 > 0:20:20£101,000 then I have for the first. 101 for the second.
0:20:20 > 0:20:25101 for the third and the final time.
0:20:25 > 0:20:27Your property, sir, well done.
0:20:27 > 0:20:32And number 7018 also goes by the name of Ray.
0:20:33 > 0:20:37A Geordie by birth, Ray did his apprenticeship as a carpenter
0:20:37 > 0:20:40and worked in the local shipbuilding industry.
0:20:40 > 0:20:42But, over the years, he headed south
0:20:42 > 0:20:46and now lives in another maritime city, Southampton.
0:20:51 > 0:20:55He currently runs a joinery firm that makes custom-built kitchens.
0:20:55 > 0:21:02This raises the question of whether one of Ray's bespoke masterpieces will take pride of place here.
0:21:02 > 0:21:06It might do because Ray has been tracking this house for a while.
0:21:08 > 0:21:12- It was strange, really. I noticed the house about six months ago.- Yeah.
0:21:12 > 0:21:15And came down and had a look with the agent.
0:21:15 > 0:21:21I thought, no way it's worth 180,000, so I put an offer in for 150.
0:21:21 > 0:21:25They came back to me and said if I could go ahead
0:21:25 > 0:21:27and confirm that they'd definitely make £150,000.
0:21:27 > 0:21:32I went and done some figures on it and I thought, maybe it's still a bit of money, so I came away.
0:21:32 > 0:21:36Then a couple of months later, he rang me up and said it's back on the market again.
0:21:36 > 0:21:39And so they had it back on the market at 150,
0:21:39 > 0:21:42so I came and had a look at it and offered them 130.
0:21:42 > 0:21:44By then had the market changed a little?
0:21:44 > 0:21:45Ah, yes. Big time, big time.
0:21:45 > 0:21:47So, everybody was, I suppose, frightened.
0:21:47 > 0:21:51But I heard it would go to auction if the sale didn't go ahead
0:21:51 > 0:21:54and so I pulled out and I thought, well, if it's going to go to auction
0:21:54 > 0:21:57I may as well give it a go at auction.
0:21:57 > 0:22:02- So it went to auction and then we got the 101,000 and...- Wow!
0:22:02 > 0:22:03So, it's a bit of a saving, yeah.
0:22:03 > 0:22:07Ray, that is an incredible story! So what was it that took your eye?
0:22:07 > 0:22:09The house is a nice house.
0:22:09 > 0:22:12I've seen the potential in it and I know roughly what I want to do to it
0:22:12 > 0:22:16and, hopefully, what I do to it will make it a saleable asset.
0:22:16 > 0:22:21What are you going to do to this house to really make it stand apart from others?
0:22:21 > 0:22:24Depending on whether I take the back chimneys and everything out,
0:22:24 > 0:22:31if that's going to be viable, I'm going to turn it into three bedrooms with an upstairs bathroom.
0:22:31 > 0:22:35But if I don't take the back chimneys out, if that's going to be too much money,
0:22:35 > 0:22:39I'm going to turn it into two bedrooms, two bathrooms.
0:22:39 > 0:22:41So, both bedrooms will have an ensuite.
0:22:41 > 0:22:47And a new kitchen, which will be extended because that will go where the bathroom is now.
0:22:47 > 0:22:50You mentioned the kitchen, what's it going to look like?
0:22:50 > 0:22:53- Well...- Is that going to be quite nice?- It'll be a readymade kitchen.
0:22:53 > 0:22:57It's not going to be handmade - the property doesn't demand it.
0:22:57 > 0:22:59So what sort of budget are you looking at here?
0:22:59 > 0:23:01I'd like to say I could do it for 20,000 but...
0:23:01 > 0:23:04- I think it'll be nearer 30. - And who's going to be doing it?
0:23:04 > 0:23:08All the lads I normally work with are going to be doing the work.
0:23:08 > 0:23:11You've got to be careful with your pennies, you can get carried away,
0:23:11 > 0:23:16especially in your line of work because you know what looks good and you know what you would like?
0:23:16 > 0:23:19Yeah. At the end of the day, I'm in this to make money
0:23:19 > 0:23:22and I want to make money at it, or if it doesn't sell
0:23:22 > 0:23:25I'm going to get my return off a rental income.
0:23:25 > 0:23:27How long is this project going to take you?
0:23:27 > 0:23:29How many months?
0:23:29 > 0:23:30Three.
0:23:30 > 0:23:32- Three months!- Three months, yeah.
0:23:32 > 0:23:34I wouldn't want it to take longer than that.
0:23:34 > 0:23:38I'm intrigued to find out how you're going to change the layout.
0:23:38 > 0:23:41I know you've got a bedroom leading off of another bedroom.
0:23:41 > 0:23:44- Can we go upstairs and chat about that?- Yeah, by all means.
0:23:45 > 0:23:48Ray, upstairs is where, I feel, the property lets itself down.
0:23:48 > 0:23:52What are you going to do to sort of reconfigure this?
0:23:52 > 0:23:55Well, as I said downstairs, the bathroom is the main...
0:23:55 > 0:23:59the main problem with the property and I think, at some stage,
0:23:59 > 0:24:03- the back small bedroom has, at some stage, been the bathroom.- I think so.
0:24:03 > 0:24:07And that's what we need to turn round and try and get another bedroom.
0:24:07 > 0:24:10The idea is, we're going to cut a big aperture, here,
0:24:10 > 0:24:13so we're going to have a doorway through into this big front bedroom.
0:24:13 > 0:24:18Obviously, we're on very different levels here because the bedroom would start through there.
0:24:18 > 0:24:22The floor level's actually only about...about there, so I reckon two steps.
0:24:22 > 0:24:25- Two steps and you'll be up into the bedroom.- Yeah.
0:24:25 > 0:24:29And, obviously, if we go three bedrooms we'll come through this area
0:24:29 > 0:24:32to go straight through into the back bedroom
0:24:32 > 0:24:36and we turn left into the bedroom which is bedroom two now.
0:24:36 > 0:24:38So, you're going to create a corridor?
0:24:38 > 0:24:41- Yes, a corridor in there, yes.- Into the third bedroom?- That's right.
0:24:41 > 0:24:45- So where are you going to put the bathroom?- Right there.- Right there.
0:24:45 > 0:24:48- Yeah.- You've got a big window, are you going to keep that?- Yeah.
0:24:48 > 0:24:52Don't you think it'll be a bit of a pinched staircase up here?
0:24:52 > 0:24:56It isn't...it isn't a grand space but, to be truthful, I think it's big enough.
0:24:56 > 0:25:00- Three months, we'll be back to check up on you! Good luck.- Thank you.
0:25:04 > 0:25:06Ray played a good waiting game here
0:25:06 > 0:25:10and got this house nearly £50,000 cheaper.
0:25:10 > 0:25:15His patience certainly paid off but all that work in three months?
0:25:15 > 0:25:18Will he do it? You can find out later in the show.
0:25:19 > 0:25:25Coming up, the condition of this property in Wales isn't great.
0:25:25 > 0:25:29If you're looking at renting this out, I reckon perfectly serviceable.
0:25:29 > 0:25:31We return to Southampton,
0:25:31 > 0:25:36where a change has been as good as a rest for Ray and his team.
0:25:36 > 0:25:40We've had some good laughs doing the job, which has been great.
0:25:41 > 0:25:44But, first, down in Cornwall they haven't stopped.
0:25:44 > 0:25:49Someone, rather politely, said to me, "You're working harder than when you were at work."
0:25:53 > 0:25:57Earlier in the programme, in the Cornish town of Liskeard,
0:25:57 > 0:26:00Ken, his wife, Jill, and their daughter, Helen,
0:26:00 > 0:26:04paid £230,000 for this bungalow next door to their house.
0:26:04 > 0:26:07They bought it to stop development of the land.
0:26:07 > 0:26:11The plan was to give it a quick makeover and rent it out.
0:26:11 > 0:26:16So, six weeks later, we've returned to see what's happened.
0:26:16 > 0:26:20Well, downstairs the bungalow has been decorated
0:26:20 > 0:26:22but it still looks very similar.
0:26:22 > 0:26:26The kitchen's had some new tiles and the hallway looks brighter
0:26:26 > 0:26:32but, as Helen explains, the majority of the work has taken place upstairs.
0:26:32 > 0:26:34It may not look a lot different up here
0:26:34 > 0:26:37but actually, we've done most of the work up here.
0:26:37 > 0:26:39We removed batons from the walls,
0:26:39 > 0:26:44there was no insulation at all, so all the ceilings have come down, we've reinsulated.
0:26:44 > 0:26:47There was a built-in wardrobe in this bedroom
0:26:47 > 0:26:49which has been taken out.
0:26:49 > 0:26:51Both sinks have been removed from the bedrooms.
0:26:51 > 0:26:54We've replaced the night storage heaters.
0:26:54 > 0:26:57It's been recarpeted and redecorated.
0:26:57 > 0:27:01We had an unexpected problem with the immersion heater, so we had to replace it.
0:27:01 > 0:27:03And the bathroom,
0:27:03 > 0:27:07we've put a new bath in, new shower screen,
0:27:07 > 0:27:09shower and regrouted.
0:27:09 > 0:27:12With the bathroom refit, this character property
0:27:12 > 0:27:16has had a little more than a splash of paint, so who did all the work?
0:27:16 > 0:27:18I've sort of done most of the work.
0:27:18 > 0:27:22Helen has helped when she's been able to, mostly upstairs, you know?
0:27:22 > 0:27:25We put in new ceilings. I done all that myself.
0:27:25 > 0:27:27The plumbing I've done myself.
0:27:27 > 0:27:30Dad's very handy, so that works out really well.
0:27:30 > 0:27:33And handy Helen has some useful contacts as well.
0:27:33 > 0:27:35An agent that I know in Looe,
0:27:35 > 0:27:38we approached him about renting the property.
0:27:38 > 0:27:44He contacted us within a few days saying he's got a possible tenant.
0:27:44 > 0:27:47They came and looked at it, liked it,
0:27:47 > 0:27:49so it almost was meant to be, really.
0:27:49 > 0:27:51But there was one request the new tenants had
0:27:51 > 0:27:57that required some structural work to be carried out in the original cloakroom and toilet.
0:27:57 > 0:28:00The tenants that we've got coming in
0:28:00 > 0:28:05requested a downstairs shower room, which meant a fair bit of work here,
0:28:05 > 0:28:09and you can see, the scar on the floor where the existing wall was.
0:28:09 > 0:28:14And although this property is mundic block, believe you me,
0:28:14 > 0:28:17it was a fair bit of work to get the wall down!
0:28:17 > 0:28:20Remember, Ken and his family bought the bungalow
0:28:20 > 0:28:23to prevent developers changing their outlook
0:28:23 > 0:28:25but the property is made of mundic block,
0:28:25 > 0:28:29so one option for Ken might be to demolish it and start again.
0:28:29 > 0:28:33It all depends on how bad the mundic brickwork is.
0:28:33 > 0:28:37We've had an initial survey done and everything is sound at the moment
0:28:37 > 0:28:39but there's no point in spending
0:28:39 > 0:28:44more than the property is going to be worth in five years' time.
0:28:44 > 0:28:47Money has been spent on the shower room,
0:28:47 > 0:28:49so how is the budget bearing up?
0:28:49 > 0:28:55We had a budget of 4,000, which we were well on track, weren't we?
0:28:55 > 0:28:59- We were, yes.- Until we had the unexpected immersion tank.
0:28:59 > 0:29:04There was no one big expense, to be quite honest.
0:29:04 > 0:29:06It was all small expense and that, you know.
0:29:06 > 0:29:09I mean, obviously our main cost
0:29:09 > 0:29:13of an individual item was probably employing a painter and decorator.
0:29:15 > 0:29:18I was really worried that the level of the patio
0:29:18 > 0:29:20wasn't the same as the living room.
0:29:20 > 0:29:22It was an accident waiting to happen
0:29:22 > 0:29:27but it sounds like Ken and the new tenants aren't about to fall out.
0:29:27 > 0:29:32The bottom step will be in line with the outside edge of the bay window and will gradually go in.
0:29:32 > 0:29:34That will look nice, coming out there.
0:29:34 > 0:29:37It's a pity they weren't in place before they come in, but, still...
0:29:37 > 0:29:39Well, as those steps aren't in yet,
0:29:39 > 0:29:44I'd better warn these two local estate agents to watch their step.
0:29:47 > 0:29:52What will they think of the bungalow and its unusual construction?
0:29:55 > 0:29:58This was a really unusual property because, obviously,
0:29:58 > 0:30:01being mundic it's cash only. At the time it fetched
0:30:01 > 0:30:05way above the guide price. We guided at 85 at auction.
0:30:05 > 0:30:06We expected in the mid hundreds
0:30:06 > 0:30:09and of course, we achieved around the 230 level.
0:30:09 > 0:30:11My first impressions of the property
0:30:11 > 0:30:15are that it's set in a fabulous plot with good views
0:30:15 > 0:30:18but within easy reach of the town centre.
0:30:18 > 0:30:22The construction, of course, is something we have to worry about.
0:30:22 > 0:30:25It's most likely that the present owner will rent it out
0:30:25 > 0:30:28for the foreseeable future cos it'll bring in some income,
0:30:28 > 0:30:30but in three, five years' time, maybe even sooner,
0:30:30 > 0:30:34the market will go back up and he may be sitting on a good profit again.
0:30:34 > 0:30:36How much could the bungalow be worth right now?
0:30:39 > 0:30:43For a mundic property, it would be unusual if it would break the stamp duty level,
0:30:43 > 0:30:46which is around 175 in normal circumstances.
0:30:46 > 0:30:48If this wasn't mundic,
0:30:48 > 0:30:52I'd probably be putting a figure of around about 350,000 on it.
0:30:52 > 0:30:56We aren't worried about the resale value of the property
0:30:56 > 0:30:58because it's unlikely that it will ever be sold
0:30:58 > 0:31:01as an individual property - as six Gypsy Lane.
0:31:01 > 0:31:04It is now part of 6a Gypsy Lane and...
0:31:04 > 0:31:07We didn't buy it as a commercial venture.
0:31:07 > 0:31:11So, really, that price is immaterial.
0:31:11 > 0:31:14Well, thanks to Helen's friend, they've managed to find tenants
0:31:14 > 0:31:17for a couple of years but what's the going rent?
0:31:17 > 0:31:19How much should they be charging?
0:31:21 > 0:31:25Ideally you would need to have full central heating in the property,
0:31:25 > 0:31:29so I think that will reduce the rental potential,
0:31:29 > 0:31:32probably to about 750 per calendar month.
0:31:32 > 0:31:36They've done everything that they should do to make it presentable.
0:31:36 > 0:31:39It will rent fairly quickly, good strong rental market at the moment,
0:31:39 > 0:31:42and he could be looking in the region of £700 a month.
0:31:42 > 0:31:45Well, we're getting £750 a calendar month.
0:31:45 > 0:31:48So we're quite happy with that.
0:31:50 > 0:31:54Of course, the income will be gratefully received for a couple of years
0:31:54 > 0:31:57but don't forget, the reason they bought the bungalow
0:31:57 > 0:32:00was to protect their view, which they have successfully done.
0:32:00 > 0:32:05But, in the future, could this mundic building be knocked down and turned into rubble?
0:32:05 > 0:32:11It's a good-looking property and the more I've been down here it...
0:32:11 > 0:32:13It does feel really welcoming,
0:32:13 > 0:32:17so, ideally, we'd like to keep it standing.
0:32:22 > 0:32:27This is Treforest in South Wales, home to the University of Glamorgan
0:32:27 > 0:32:29and bordering the town of Pontypridd.
0:32:29 > 0:32:33I'm visiting a house on a pretty busy thoroughfare,
0:32:33 > 0:32:35just a half a mile from the university.
0:32:35 > 0:32:37MUSIC: "Broadway" by The Drifters
0:32:40 > 0:32:43Well, this is Broadway, although, unlike New York,
0:32:43 > 0:32:47I don't think there are too many stars on this particular street of that name.
0:32:47 > 0:32:52However, Tom Jones was born and brought up around this area.
0:32:52 > 0:32:58So what am I here to see? Well, it's a four storey five-bedroomed house of multiple occupation.
0:32:58 > 0:33:00What's it like? Well, I don't know,
0:33:00 > 0:33:04compared to the others in the area...it's not unusual!
0:33:04 > 0:33:06MUSIC: "It's not unusual" by Tom Jones
0:33:06 > 0:33:08An HMO, or House Of Multiple Occupation,
0:33:08 > 0:33:13is generally a property which is let to three or more individual tenants.
0:33:13 > 0:33:16# It's not unusual to be loved by anyone... #
0:33:16 > 0:33:21According to the auction catalogue, this property complies with HMO regulations
0:33:21 > 0:33:23for five sharing,
0:33:23 > 0:33:27so it has met the standards for fire regulations and facilities.
0:33:27 > 0:33:30So what have we got? Oh, well, that's a good start.
0:33:30 > 0:33:33Now, it is an HMO, a House Of Multiple Occupation.
0:33:33 > 0:33:35One of the things which is going to cost you a fortune,
0:33:35 > 0:33:39if you haven't got it, is a proper fire alarm system like this.
0:33:39 > 0:33:44It's hardwired and everything. That would be two, three, four thousand quid if it didn't have one already.
0:33:44 > 0:33:48Whenever I see one of these I want to turn it on and check it works but better not!
0:33:48 > 0:33:51Anyway, large sitting room, living room area,
0:33:51 > 0:33:53stairs down to the basement.
0:33:53 > 0:33:56A passageway there up to the other bedrooms
0:33:56 > 0:33:58and then through into the kitchen.
0:33:58 > 0:34:01Now, not in terribly brilliant condition,
0:34:01 > 0:34:03but if you're looking at renting this out,
0:34:03 > 0:34:06I reckon perfectly serviceable. And you know what?
0:34:06 > 0:34:08All in all, an interesting start.
0:34:08 > 0:34:16At a guide price of £69,000 this house looks ready to go for a buy-to-let investor.
0:34:16 > 0:34:20There's a large living room, kitchen and fire alarm.
0:34:20 > 0:34:25The next stop is downstairs to the basement.
0:34:25 > 0:34:30Downstairs and this is where this property starts to score for me.
0:34:30 > 0:34:32A couple of negatives first.
0:34:32 > 0:34:37That is the only bathroom in the property, although there is a loo upstairs, so that's not ideal.
0:34:37 > 0:34:39Also, it smells damp, which you might expect
0:34:39 > 0:34:42and actually there's indications of damp in that loo.
0:34:42 > 0:34:46But what you've got here is a very interesting and flexible space.
0:34:46 > 0:34:50At the moment there's just a bathroom, as I said, and a bedroom.
0:34:50 > 0:34:54However, the key to this is that there's a separate entrance there.
0:34:54 > 0:34:58So you could consider turning this into a self-contained flat.
0:34:58 > 0:35:00Mm-hmm. Good news!
0:35:02 > 0:35:05There are two doors down in the basement.
0:35:05 > 0:35:08The back one leads out to the garden,
0:35:08 > 0:35:12while this one at the front gives access up to the pavement.
0:35:12 > 0:35:16Another bonus is that you can drive a car up to the back of the property.
0:35:16 > 0:35:19Onwards and upwards to the first floor,
0:35:19 > 0:35:23which has two large bedrooms and a toilet, all in reasonable condition.
0:35:23 > 0:35:27There are new PVC double-glazed windows,
0:35:27 > 0:35:31which at least keep out a lot of the traffic noise.
0:35:31 > 0:35:35Then there are more stairs up to the second floor.
0:35:37 > 0:35:41So up to the very top of the house, where you've got two attic bedrooms.
0:35:41 > 0:35:43The first thing I notice is this plaster.
0:35:43 > 0:35:47It's very new, which definitely gets me thinking.
0:35:47 > 0:35:49Look, it goes onto the ceiling there.
0:35:49 > 0:35:51I wonder if there's been a leak.
0:35:51 > 0:35:56I'd definitely want to check out the chimney breast to see if there's a leakage
0:35:56 > 0:35:59and that repairs have been done outside as well.
0:35:59 > 0:36:01Not a bad-sized space. Two rooms, as I say.
0:36:01 > 0:36:05But when it comes to these kind of rooms, if you're renting this out as an HMO,
0:36:05 > 0:36:08they'll be very, very concerned about a fire escape up here.
0:36:08 > 0:36:10That window, I don't think, is compliant.
0:36:10 > 0:36:14It looks a bit small. On the other side there are opening windows,
0:36:14 > 0:36:17which would give you necessary escape routes in case of fire.
0:36:17 > 0:36:20But, all in all, a lot of house for the money.
0:36:20 > 0:36:25So, with a guide price of 69,000, this house, on three levels,
0:36:25 > 0:36:27seems to be pretty good value.
0:36:27 > 0:36:31I've invited a local estate agent to take a look at the house.
0:36:31 > 0:36:33Would it make a good student let?
0:36:35 > 0:36:37Student accommodation is ideal for this location
0:36:37 > 0:36:40because you're literally on the doorstep
0:36:40 > 0:36:42of the Pontypridd train station
0:36:42 > 0:36:46and then you're very close to the university and local amenities.
0:36:46 > 0:36:49If not for students, or multiple occupancy,
0:36:49 > 0:36:52what about converting this building into flats?
0:36:52 > 0:36:55Yes, it could be divided into two separate flats.
0:36:55 > 0:36:58We've just recently sold one which is a few doors down,
0:36:58 > 0:37:02that the family actually lived in the self-contained flat downstairs
0:37:02 > 0:37:05and rented the four rooms upstairs.
0:37:05 > 0:37:10Of course, any buy-to-let investor is going to want to know what the rental income could be,
0:37:10 > 0:37:12so how much are we talking here?
0:37:12 > 0:37:19Rental income, you're looking at around about £200 per calendar month per student.
0:37:19 > 0:37:21The rental income for a family
0:37:21 > 0:37:24could be around about £500 to £600 per calendar month.
0:37:24 > 0:37:27If five rooms were let to students,
0:37:27 > 0:37:30that could produce £1,000 per calendar month.
0:37:30 > 0:37:32That's more than you'd get for a family
0:37:32 > 0:37:35but do remember that student lets are often only for term time,
0:37:35 > 0:37:41so a 12 month let to a family could end up producing a similar annual income.
0:37:41 > 0:37:43What about the resale value?
0:37:43 > 0:37:49Renovated to a reasonable standard, we are going to be looking at between £100,000 and £110,000.
0:37:51 > 0:37:55So, a good property this with some interesting options.
0:37:55 > 0:37:58You can use it as it is, as an HMO, in the knowledge
0:37:58 > 0:38:01that you have got some good rental potential in the area.
0:38:01 > 0:38:05Or, for my money, the thing to do is to convert this basement
0:38:05 > 0:38:06into a separate flat.
0:38:06 > 0:38:09That is how, I think, you really get your money out of this one.
0:38:09 > 0:38:12Let's find out who fancied it when it went to the auction.
0:38:12 > 0:38:15Now, then, we go to lot number 35,
0:38:15 > 0:38:17which is the four-storey house.
0:38:17 > 0:38:21It's had a successful history as a student letting property in the past.
0:38:21 > 0:38:24Who's got 80,000 for it? It's got to be worth that.
0:38:24 > 0:38:27It's there, I would have thought, ready to let.
0:38:27 > 0:38:29Who's got 70 to start me?
0:38:29 > 0:38:32- 65.- Thank you, sir. Well, done.
0:38:32 > 0:38:3565, I'm bid. You all heard that bid.
0:38:35 > 0:38:37Good job there's one brave man here.
0:38:37 > 0:38:4065. Thank you. At 65, I'm bid.
0:38:40 > 0:38:42Can I see eight anywhere, now?
0:38:42 > 0:38:45Is that a bid, sir? Yes, thank you.
0:38:45 > 0:38:4768 I'm bid. At 68.
0:38:47 > 0:38:49Fresh bid. 70. Thank you. At 70.
0:38:49 > 0:38:52I'll take them one at a time, then. Can I see one for you, sir?
0:38:52 > 0:38:55The bid's in the back at £70,000.
0:38:55 > 0:38:58One, is that, for you? One, thank you.
0:38:58 > 0:39:00Two. Thank you. 72 I'm bid.
0:39:00 > 0:39:02Both of you in the back at 72.
0:39:02 > 0:39:04Are you all done then at 73?
0:39:04 > 0:39:10Thank you, sir. At £73,000. It's against both of you. There is the bid on the aisle.
0:39:10 > 0:39:13At 73... Four, thank you, 74.
0:39:13 > 0:39:16At 74,000. Is it another one?
0:39:16 > 0:39:19Quick if you like it. It's only a small bid if you want one.
0:39:19 > 0:39:22At 74. Can I make it five, quick if you like?
0:39:22 > 0:39:25At 74,000. It's your bid.
0:39:25 > 0:39:27I make no bones about it,
0:39:27 > 0:39:31I have to get five so whoever comes in first with 75...
0:39:31 > 0:39:35I can drop the hammer at five but I can't before. Either of you?
0:39:35 > 0:39:38Nope? Come and see us, let's see what we can do.
0:39:38 > 0:39:43So it failed to reach its reserve price and was withdrawn
0:39:43 > 0:39:47but Joshua decided to speak to the auction house afterwards.
0:39:47 > 0:39:51He's a lecturer in civil engineering at Kingston University in Surrey
0:39:51 > 0:39:53and has built up a portfolio of properties
0:39:53 > 0:39:55as a long-term investment.
0:39:55 > 0:39:58He hopes they'll provide an income and a pension.
0:39:58 > 0:40:02I met up with him at the house to find out how he came to buy it.
0:40:02 > 0:40:05- The kitchen. Anyway, Joshua, good to meet you.- You too.
0:40:05 > 0:40:10- Congratulations. Now...- Thank you. - I thought you hadn't got it at the auction. What happened?
0:40:10 > 0:40:13Well, I hadn't got it because I gave up on the price.
0:40:13 > 0:40:19It looked very high at £74,000 but I had a change of mind afterwards.
0:40:19 > 0:40:22They said I should go for it and I did get it for 75 grand in the end.
0:40:22 > 0:40:25You went to see the auctioneer after and negotiated...
0:40:25 > 0:40:27- Yes.- A post-auction bid.- Yes.
0:40:27 > 0:40:32So, Joshua paid £75,000 and added this property
0:40:32 > 0:40:36to five others that he already owns in Cardiff and elsewhere.
0:40:36 > 0:40:39So, what was it about this house, specifically, that you liked?
0:40:39 > 0:40:43I didn't actually intend to buy this property.
0:40:43 > 0:40:49- What?- That's right, because, the property I wanted to buy was in Cardiff
0:40:49 > 0:40:54but once I got into the auction room and bids started coming through,
0:40:54 > 0:40:57I knew I was going to be outbid. So I gave up on that one.
0:40:57 > 0:41:02In the meantime, I started looking around for other properties in the same catalogue.
0:41:02 > 0:41:06I quickly went down to look at the HIP report for it
0:41:06 > 0:41:08and it looked like it was a good property.
0:41:08 > 0:41:12It didn't look like it required a lot of work to be done
0:41:12 > 0:41:14and because, also, I used to work in this area,
0:41:14 > 0:41:16I know this street quite well,
0:41:16 > 0:41:18and I had a gut feeling it was a good property.
0:41:18 > 0:41:22So Joshua hadn't viewed the house before he bought it.
0:41:22 > 0:41:25Buying it blind is not something I'd recommend
0:41:25 > 0:41:29but luckily, in this case, the gamble seems to have paid off.
0:41:31 > 0:41:35So tell me exactly what you're going to do with the place
0:41:35 > 0:41:37I'm going to do some minor improvements,
0:41:37 > 0:41:40spend about between £6,000 and £7,000.
0:41:40 > 0:41:44I'm planning to tile the whole of the ground floor,
0:41:44 > 0:41:48with bathroom and hallway,
0:41:48 > 0:41:52and also recarpet the two upstairs bedrooms,
0:41:52 > 0:41:56also tile the upstairs toilet floor
0:41:56 > 0:42:00and replace or repair the windows upstairs which don't close properly.
0:42:00 > 0:42:03And I think it'll be looking good in the end.
0:42:03 > 0:42:05Tell me what the idea is, then?
0:42:05 > 0:42:07Is it to rent it out as individual rooms?
0:42:07 > 0:42:11It is to rent it out as a whole unit for a family,
0:42:11 > 0:42:14or to individual, you know, students.
0:42:14 > 0:42:18Now, one option that we thought about was potentially
0:42:18 > 0:42:22converting the downstairs into an independent self-contained flat.
0:42:22 > 0:42:24- Have you considered that? - Yeah, I've got that in mind,
0:42:24 > 0:42:28but I'll have to look at the costs involved
0:42:28 > 0:42:32and also the possibility of getting planning permission for that.
0:42:32 > 0:42:36If I can afford it and if they accept I can do it, then I'll do it
0:42:36 > 0:42:40but it's not something I would do within the next six months.
0:42:40 > 0:42:43It's more like a year or more.
0:42:43 > 0:42:45- Well, congratulations. Good luck. - Thank you.
0:42:45 > 0:42:47And delighted to see how you get on.
0:42:47 > 0:42:49Thank you very much.
0:42:50 > 0:42:54In the end, Joshua paid a reasonable £75,000 for the property,
0:42:54 > 0:42:57but will the repair work needed here
0:42:57 > 0:43:00end up being a drain on his finances?
0:43:00 > 0:43:03Well, it looks like things have turned out OK for Joshua
0:43:03 > 0:43:06but I still think he made a big, big, big gamble
0:43:06 > 0:43:08by not visiting the property beforehand.
0:43:08 > 0:43:13In terms of what he's planning to do, yes, I think he's going down the right lines
0:43:13 > 0:43:16and renting this out to a family will certainly be less hassle
0:43:16 > 0:43:19than renting it out as individual rooms to students.
0:43:19 > 0:43:24That budget, though, 6,000 to 7,000 quid, it's a big house to sort out for that. Will he do it?
0:43:24 > 0:43:26You can find out later in the show.
0:43:29 > 0:43:32It's been several months since we first met our buyers.
0:43:32 > 0:43:35Have they just been papering over the cracks?
0:43:35 > 0:43:37Or have they transformed their lot?
0:43:37 > 0:43:38Let's find out.
0:43:39 > 0:43:42We're returning to Totten in Hampshire, where Ray,
0:43:42 > 0:43:44a highly-skilled carpenter,
0:43:44 > 0:43:49had paid £101,000 for this house which needed a full refurbishment.
0:43:50 > 0:43:53He's owned five other investment properties in the past
0:43:53 > 0:43:56but this was his first purchase for ten years
0:43:56 > 0:43:59as he now runs his own successful bespoke kitchen company.
0:44:02 > 0:44:06Eight months later and the refurbishment's complete.
0:44:06 > 0:44:11From the road, the house doesn't appear to have changed that much but don't be fooled.
0:44:11 > 0:44:15Behind the bay window, the living room's been decorated
0:44:15 > 0:44:18and looks so much bigger.
0:44:19 > 0:44:21And good to see that the fireplace remains
0:44:21 > 0:44:24but it's the only one in the house because the rear chimney
0:44:24 > 0:44:26in the dining room has gone
0:44:26 > 0:44:31and a fabulous new kitchen diner's been created.
0:44:34 > 0:44:40That meant the original bathroom at the back of the house had to move upstairs.
0:44:40 > 0:44:43Ray had planned to have three bedrooms and a bathroom
0:44:43 > 0:44:46but two of the bedrooms would have been too small
0:44:46 > 0:44:51and the bathroom tiny, so he decided less was more.
0:44:51 > 0:44:53There would be just two bedrooms,
0:44:53 > 0:44:56each with an ensuite and new doorways.
0:44:56 > 0:45:00Well, as you see, this is one of the two new entrances to the bedrooms.
0:45:00 > 0:45:03This room has now become the master bedroom.
0:45:03 > 0:45:07You used to enter this room from a doorway in the wall here,
0:45:07 > 0:45:09which we've now blocked up, totally redone.
0:45:09 > 0:45:13The landing has become the ensuite for the front bedroom,
0:45:13 > 0:45:14now the second bedroom.
0:45:14 > 0:45:19Across here, we have the bathroom to this main bedroom,
0:45:19 > 0:45:23the fireplace and the big... was taken away,
0:45:23 > 0:45:27everything opened up, and we now have a lovely new bathroom,
0:45:27 > 0:45:28nice and big, nice and airy.
0:45:28 > 0:45:30A separate shower,
0:45:30 > 0:45:35lovely big bath and it's one of the best rooms in the house again.
0:45:36 > 0:45:41Ray and the workers from his kitchen company have done most of the work.
0:45:45 > 0:45:49Upstairs, the chimneys have gone and the ceilings have been replastered.
0:45:52 > 0:45:55The original kitchen and conservatory were only single skinned
0:45:55 > 0:45:59but a second wall's been added with all the necessary insulation.
0:46:01 > 0:46:05And that sagging roof has been retiled.
0:46:05 > 0:46:09The chimneys in the back of the house really interfered with the layout
0:46:09 > 0:46:13and as we wanted to really open the back and front of the house out,
0:46:13 > 0:46:14they had to come out.
0:46:14 > 0:46:18It gave us more vision cos that was the first job we did.
0:46:18 > 0:46:23Once the obstructions had gone, the full potential of the property was clear.
0:46:23 > 0:46:25So what happened in the kitchen?
0:46:25 > 0:46:31Well, we've totally transformed it, really. We've ripped the wall out.
0:46:31 > 0:46:34We've ripped the partition wall out here,
0:46:34 > 0:46:36which went to the original bathroom.
0:46:36 > 0:46:38We've retiled the floors,
0:46:38 > 0:46:42complete new units, white gloss, clean and crisp
0:46:42 > 0:46:44and as ladies love kitchens
0:46:44 > 0:46:47and are normally the biggest selling points of the house,
0:46:47 > 0:46:53we decided to spend the most money on that and, hopefully, this is what will sell it, with the bathrooms.
0:46:53 > 0:46:57It's one thing to rip everything out but it all has to be replaced.
0:46:57 > 0:47:00Ray used his expert carpenter's skills.
0:47:00 > 0:47:02There's quality woodwork everywhere.
0:47:02 > 0:47:04It really does set the house apart.
0:47:05 > 0:47:08I've been away from the property market for about ten years.
0:47:08 > 0:47:13I've been concentrating on kitchens and joinery and enjoying it, really.
0:47:13 > 0:47:17I always wanted my joiner's shop and finally I've been able to get it
0:47:17 > 0:47:21but as work went a little bit slack I thought we'd give,
0:47:21 > 0:47:24we'd give this a go and the lads, all of them, have worked really hard.
0:47:24 > 0:47:27It's been eight months since we first saw the property.
0:47:27 > 0:47:29Ray's been busy on other projects,
0:47:29 > 0:47:33so he's actually only spent about three months here.
0:47:33 > 0:47:36Every little bit of space has been utilised.
0:47:36 > 0:47:40The stairs were, if you remember from the beginning, a little further back
0:47:40 > 0:47:44and there was really just a load of dead space under there.
0:47:44 > 0:47:46So we decided we didn't have to gain a lot of room,
0:47:46 > 0:47:50even though it was a lot of work, we were only gaining about a foot and a half,
0:47:50 > 0:47:53but the foot and a half, of course,
0:47:53 > 0:47:57enabled us to put a lovely cloakroom in there.
0:47:57 > 0:48:00How much has all this refurbishment work cost?
0:48:00 > 0:48:04When I originally said I was going to spend maybe between 20 and 30,
0:48:04 > 0:48:06I've spent probably nearer 35, 36.
0:48:06 > 0:48:13A lot of money but it sounds like all Ray's hard work and design skills have paid off.
0:48:13 > 0:48:18Well, a week ago we decided to put the property on the market
0:48:18 > 0:48:22and the first couple that were able to view it bought it.
0:48:22 > 0:48:26They offered me the full asking price of 175, so I was more than happy.
0:48:26 > 0:48:30So well done, Ray! He's got a buyer already!
0:48:30 > 0:48:35How impressed will two local estate agents be with the property?
0:48:35 > 0:48:37Time to find out.
0:48:37 > 0:48:40I like the fact that this property's got well proportioned rooms.
0:48:40 > 0:48:43I like the layout with the open-plan kitchen and dining area.
0:48:43 > 0:48:48Everything within the property now is new and modern, which is always nice.
0:48:48 > 0:48:52Somebody can come in and there are no question marks and expenditure.
0:48:52 > 0:48:55The fact that they've put the bathrooms upstairs
0:48:55 > 0:48:58has enabled them to make the kitchen a nice big room.
0:48:58 > 0:49:01They've also incorporated a downstairs cloakroom, which is excellent.
0:49:01 > 0:49:05Modern living is very much family room at the back of the house
0:49:05 > 0:49:08and if there was anything that I would have done differently,
0:49:08 > 0:49:12it would have been to bring the kitchen out to where the conservatory is
0:49:12 > 0:49:18and maybe leave the possibility of a conservatory on the back for the new owners. The plot does allow it.
0:49:21 > 0:49:24Obviously, Ray was considering letting it
0:49:24 > 0:49:28but he's now decided to sell the house for £175,000.
0:49:30 > 0:49:34Did he get his sums right? Could he have got more? Let's find out.
0:49:37 > 0:49:41I would put this property on the market for a maximum of £185,000.
0:49:41 > 0:49:46I would put this property on the resale market for £175,000.
0:49:46 > 0:49:48Oh, it would have been nice to get 185,000
0:49:48 > 0:49:51but that would have probably put me in a big chain.
0:49:51 > 0:49:55I think it was marketed right and I'm happy with what I got, really.
0:49:55 > 0:50:00Ray paid £101,000 at the auction and his budget reached 35,000,
0:50:00 > 0:50:03so a sale at 175,000
0:50:03 > 0:50:09represents about 39 grand gross profit and a job very well done.
0:50:09 > 0:50:11Considering I hadn't done it for ten years,
0:50:11 > 0:50:13it's nice to get back in the swing.
0:50:13 > 0:50:17I've had friends in the game who've come round and said it's a lovely job,
0:50:17 > 0:50:21and I think that's why the first person who walked in bought it.
0:50:21 > 0:50:25They're happy, I'm happy, and the house is looking like a house now.
0:50:25 > 0:50:30I think the old lady who lived here would have loved it and all, so everybody's happy!
0:50:33 > 0:50:39We now return to Treforest in Wales, where part-time developer Joshua
0:50:39 > 0:50:44had paid £75,000 for this mid-terraced property,
0:50:44 > 0:50:46without seeing it first.
0:50:46 > 0:50:50In the past, it had been let to students and he intended to do some improvements
0:50:50 > 0:50:52before renting it out again.
0:50:52 > 0:50:56Less than one month later, we're back to see Joshua
0:50:56 > 0:50:59and I'm struggling to see any of his minor improvements.
0:51:01 > 0:51:03Nowhere looks to have been painted
0:51:03 > 0:51:07and the only change seems to be some tiles in the upstairs loo.
0:51:07 > 0:51:10So why has he left it as it was?
0:51:11 > 0:51:14I was thinking of doing a lot of things, initially,
0:51:14 > 0:51:17including a new bathroom upstairs
0:51:17 > 0:51:22and also creating a shower for the upstairs bedrooms,
0:51:22 > 0:51:26but after a bit of thought I decided to scale down the work
0:51:26 > 0:51:29and do only those that I can afford to do, for now,
0:51:29 > 0:51:33and the rest, possibly, I'll do in the future.
0:51:33 > 0:51:36It's not just the first floor where the tiler's been at work.
0:51:36 > 0:51:41Now the basement corridor's ceramic and it hasn't stopped there.
0:51:43 > 0:51:46This bathroom has been tiled.
0:51:46 > 0:51:52This wall was affected badly by the water which was leaking outside
0:51:52 > 0:51:54but that has been sorted out now
0:51:54 > 0:51:57and will come back in good shape once it's painted.
0:51:57 > 0:51:59This wall will be all painted in cream
0:51:59 > 0:52:02and the ceiling will be painted in white.
0:52:02 > 0:52:06The bathroom suite will remain as it is, for now,
0:52:06 > 0:52:09but in future we'll think about replacing it.
0:52:09 > 0:52:13So, to start with, Joshua's done all he thinks is necessary
0:52:13 > 0:52:17to attract a tenant to the whole house and he's not had to wait long.
0:52:17 > 0:52:20The tenant we've got so far,
0:52:20 > 0:52:24which is a family, has accepted it partly furnished,
0:52:24 > 0:52:27so they're going to bring in their own furniture.
0:52:27 > 0:52:30They were quite pleased with the size of the property.
0:52:30 > 0:52:32They're a big family and they needed many rooms.
0:52:32 > 0:52:37They did, you know, comment that the property needs some decoration,
0:52:37 > 0:52:39which I've accepted to do
0:52:39 > 0:52:45and I hope that after all this is done they'll be quite pleased with the condition of the property.
0:52:45 > 0:52:47It's all a bit back to front.
0:52:47 > 0:52:49Joshua's got the tenant lined up
0:52:49 > 0:52:55and is now about to freshen up the house, starting in the attic rooms.
0:52:55 > 0:53:01In this bedroom, again, we'll paint all the walls in cream,
0:53:01 > 0:53:04we'll also replace the carpet with laminate flooring
0:53:04 > 0:53:07and paint the ceiling white.
0:53:08 > 0:53:11He also plans to put a laminate floor in the basement bedroom.
0:53:11 > 0:53:15Once that's done, he'll get the necessary safety tests carried out on the gas,
0:53:15 > 0:53:19electricity and the fire alarm before his tenant can move in.
0:53:19 > 0:53:22What does he now think his spend will add up to?
0:53:26 > 0:53:31Initial budget was about £7,000, with a lot of work in the list,
0:53:31 > 0:53:36and so far I've only spent £1,600 on the tiling
0:53:36 > 0:53:41and repairing of the windows upstairs.
0:53:41 > 0:53:47Next job, which will be flooring, will cost me about £900 in total.
0:53:47 > 0:53:51So, altogether, I'll have spent a lot less than the initial £7,000.
0:53:53 > 0:53:56Remember, he paid £75,000 for the property
0:53:56 > 0:54:00which came with the potential to rent out rooms to students
0:54:00 > 0:54:03but to start with he's letting out the whole house to a family,
0:54:03 > 0:54:06so how much income will he earn?
0:54:06 > 0:54:10The tenants we've found have agreed to pay £650 per month.
0:54:10 > 0:54:16I'm quite happy because my mortgage payment is much less than that.
0:54:17 > 0:54:21Time to get some property advice from two local estate agents.
0:54:21 > 0:54:24How do they rate Joshua's work?
0:54:24 > 0:54:28First impressions are that this property needs a tremendous amount
0:54:28 > 0:54:31spent on it before it could even be used for letting.
0:54:31 > 0:54:34What's changed is very little since I was here last.
0:54:34 > 0:54:38There has been a minimum amount of money spent on the property.
0:54:38 > 0:54:42I'm surprised to hear that the flooring's been changed.
0:54:42 > 0:54:44If it has, it needs a good clean.
0:54:44 > 0:54:47And I understand there's talk of laminating the first floor
0:54:47 > 0:54:51which I strongly recommend against, as it will cause problems with sound.
0:54:51 > 0:54:56It needs to be completely decorated from top to bottom - new carpets,
0:54:56 > 0:54:58could replace the kitchen, the bathroom
0:54:58 > 0:55:00and look at the front door.
0:55:00 > 0:55:03If all those improvements were carried out,
0:55:03 > 0:55:08how much income could the house generate if it was let to a family?
0:55:08 > 0:55:11If this property had a basic renovation, decoration throughout,
0:55:11 > 0:55:13new carpets and was cleaned,
0:55:13 > 0:55:20I would expect it to achieve in the region of £450 to £500 per calendar month as a family let.
0:55:20 > 0:55:25As a family let you're going to be looking between around £500 to £600 per calendar month.
0:55:25 > 0:55:29Well, it's nice that I managed to get something more
0:55:29 > 0:55:34than the agency's valuation but you never know.
0:55:34 > 0:55:39If I make the house better, I might even get more than 650 in the future.
0:55:39 > 0:55:42Well, he's already covering his mortgage.
0:55:42 > 0:55:47He paid £75,000 at the auction and spent just £2,500 on the makeover.
0:55:47 > 0:55:51So, how much is the house now worth in this state
0:55:51 > 0:55:54and what could it fetch once refurbished?
0:55:54 > 0:55:56In its current condition,
0:55:56 > 0:56:00I would try marketing it at an asking price of 85,000.
0:56:00 > 0:56:05If we were to put this on the market in its current condition, it would be a minimum of 90,000.
0:56:05 > 0:56:10If this property had been fully renovated, I would probably put it on the market in the region of 105.
0:56:10 > 0:56:13If the money was invested on the property,
0:56:13 > 0:56:16we could be achieving around about £107,000.
0:56:16 > 0:56:20Wow! At least £10,000 profit after just one month
0:56:20 > 0:56:24and potentially a lot more if Joshua does the place up.
0:56:24 > 0:56:29That's encouraging. I think it might even make me think about
0:56:29 > 0:56:33doing up the kitchen and bathroom if it doesn't cost too much, really.
0:56:33 > 0:56:37Joshua's a shrewd investor who has spent well.
0:56:37 > 0:56:41Even with his minimum investment, he's already seeing a profit.
0:56:41 > 0:56:43I'd invest some of that money back into the house
0:56:43 > 0:56:46to make it a more welcoming new home for his first tenants.
0:56:51 > 0:56:55So, there you have it, the highs and the lows of buying at auction.
0:56:55 > 0:56:59So, join us next time for more auction room action on Homes Under The Hammer.
0:56:59 > 0:57:01- See you then.- Goodbye.- Goodbye.
0:57:18 > 0:57:21Subtitles by Red Bee Media Ltd
0:57:21 > 0:57:24E-mail subtitling@bbc.co.uk