0:00:02 > 0:00:04Not everyone who's buying at auction is an investor.
0:00:04 > 0:00:07It can be a good, quick way to buy your home.
0:00:07 > 0:00:10Yes. People all over the country are doing it,
0:00:10 > 0:00:13so stand by for more Homes Under The Hammer.
0:00:39 > 0:00:43Tackling a run-down property can tap into skills you never knew you had.
0:00:43 > 0:00:46You could turn out to be a born decorator
0:00:46 > 0:00:49or perhaps decide you should leave it to the professionals.
0:00:49 > 0:00:52So let's see which way the chips fell on today's show.
0:00:54 > 0:00:57This three-storey semidetached in Nottingham
0:00:57 > 0:01:00needs a lot of attention, especially in the kitchen.
0:01:01 > 0:01:02It is yuck - vile.
0:01:04 > 0:01:08In historic Faversham, Kent, this retail unit has a lot to offer.
0:01:10 > 0:01:12Well, it's certainly big in here!
0:01:14 > 0:01:18And this two-bedroom bungalow in Exmouth has got my blood boiling.
0:01:19 > 0:01:21I hate this kind of stuff.
0:01:21 > 0:01:24If you've got this, please think about taking it out.
0:01:25 > 0:01:28All these properties have been sold at auction
0:01:28 > 0:01:31and we'll find out who bought them and what they paid for them
0:01:31 > 0:01:33when they went under the hammer.
0:01:37 > 0:01:39I'm in Robin Hood country,
0:01:39 > 0:01:42looking for property riches in an area called Carrington,
0:01:42 > 0:01:45just two miles from Nottingham city centre.
0:01:45 > 0:01:47It's not far from the university
0:01:47 > 0:01:51and many of the grand old houses have been subdivided into flats
0:01:51 > 0:01:53and student rentals.
0:01:55 > 0:01:57This is Waldeck Road,
0:01:57 > 0:02:01lined with these grand, Victorian bay-fronted terraces.
0:02:01 > 0:02:05But the property I'm here to see is actually this.
0:02:05 > 0:02:08It's semidetached, three storeys, four bedrooms.
0:02:08 > 0:02:12Now, a year ago, this was on the market at £190,000
0:02:12 > 0:02:16but it's just gone to the auction guided at £112,000.
0:02:16 > 0:02:19Whoa! That has got to be a steal.
0:02:22 > 0:02:24Daylight robbery if you ask me.
0:02:24 > 0:02:29Just look at it - it's enormous. It just towers over you.
0:02:29 > 0:02:34A little tired around the edges perhaps but just £112,000 for all this?
0:02:34 > 0:02:35Crikey!
0:02:36 > 0:02:38OK, so what have we got inside?
0:02:38 > 0:02:40Well, a fairly horrible front door.
0:02:40 > 0:02:43Old-fashioned double glazing. Remember aluminium like that?
0:02:43 > 0:02:47But good news - the front sitting room, nice high ceilings,
0:02:47 > 0:02:49which is good to see.
0:02:49 > 0:02:52But the whole place, having said that, it looks fairly run down
0:02:52 > 0:02:54and unloved.
0:02:54 > 0:02:56Victorian, beautiful era.
0:02:56 > 0:02:59The big question is how many of the original features are left.
0:02:59 > 0:03:01That certainly isn't one.
0:03:01 > 0:03:05And here's a clue that backs up my thoughts about student lets or HMOs.
0:03:05 > 0:03:10Individual locks on the rooms - that is what it's been used for.
0:03:10 > 0:03:13But good news. We have a ceiling rose.
0:03:13 > 0:03:16Excellent. A bit of Victoriana remains.
0:03:16 > 0:03:19Let's see what the rest of the house has in store.
0:03:21 > 0:03:26As I suspected, gloriously grand proportions but very dated.
0:03:26 > 0:03:29There are vast swathes of woodchip on the walls
0:03:29 > 0:03:31and the wiring looks pretty old.
0:03:31 > 0:03:34However, there does seem to be central heating,
0:03:34 > 0:03:37which you certainly need to heat a house of this scale.
0:03:39 > 0:03:42It always annoys when you come into a big house like this
0:03:42 > 0:03:45and the main corridor to the main room in the house, the kitchen,
0:03:45 > 0:03:47is so narrow and horrible.
0:03:47 > 0:03:49That needs sorting out, for sure.
0:03:49 > 0:03:53You come into the kitchen, the focal point of a house like this,
0:03:53 > 0:03:54and it is yuck - vile.
0:03:54 > 0:03:56I mean, it needs completely gutting.
0:03:56 > 0:04:00There's a boiler there, probably out of Victorian times for sure.
0:04:00 > 0:04:02You're going to have to do some work in here.
0:04:02 > 0:04:06If you are going to rent to students, don't think you can get away with this.
0:04:06 > 0:04:10Students these days expect, quite rightly, higher standards.
0:04:10 > 0:04:13So whether it's for yourself or to rent it out,
0:04:13 > 0:04:15you're going to have to sort this area big time.
0:04:17 > 0:04:20It's not just the inside that requires attention.
0:04:20 > 0:04:23The garden is rapidly turning into Sherwood Forest.
0:04:23 > 0:04:27It's also clear from the back that the house is a bit of a tapestry
0:04:27 > 0:04:30of quick patch-up jobs on the brickwork.
0:04:30 > 0:04:34There are also some cracks that should be dealt with urgently.
0:04:36 > 0:04:41As you're walking around, you have to wonder what this would've been like in its heyday.
0:04:41 > 0:04:42I think, pretty grand.
0:04:42 > 0:04:46It would be lovely to think about it being taken back to that.
0:04:46 > 0:04:49You are going to have to address the toilet situation.
0:04:49 > 0:04:53There's only one bathroom. There's a separate loo as well.
0:04:53 > 0:04:57But for a house this size, either way, that isn't enough.
0:04:57 > 0:05:00Things like this staircase, they did it well in those days.
0:05:00 > 0:05:02If this was stripped back, that would be lovely.
0:05:02 > 0:05:05A nice little touch, because it's a semi-detached,
0:05:05 > 0:05:09you've got this window, light flooding into the stairway here,
0:05:09 > 0:05:10which is good to have.
0:05:10 > 0:05:14The bedrooms themselves, they're nice and light and airy, high ceilings.
0:05:14 > 0:05:16This, I suppose, is the master.
0:05:16 > 0:05:20And just imagine this as the master bedroom in the house.
0:05:20 > 0:05:23There maybe enough room to put an en suite in here,
0:05:23 > 0:05:24maybe reinstate the fireplace.
0:05:24 > 0:05:27You've got these high ceilings...
0:05:27 > 0:05:30Work to do but worth it.
0:05:31 > 0:05:35Having said that, don't underestimate the amount of work
0:05:35 > 0:05:36that needs to be done here.
0:05:36 > 0:05:41Even with the low guide price, it's going to be an expensive project.
0:05:41 > 0:05:43Once the woodchip comes off the walls,
0:05:43 > 0:05:45the house could reveal a nasty side.
0:05:49 > 0:05:51So up onto the top floor...
0:05:51 > 0:05:53Oh, blimey. That's not good.
0:05:53 > 0:05:57A floorboard's completely given way. That needs to be sorted out straight away.
0:05:57 > 0:06:02And look at this banister. It is so low. Very, very dangerous.
0:06:02 > 0:06:05That needs to be much higher for safety reasons.
0:06:05 > 0:06:07But up here, we've got two more bedrooms
0:06:07 > 0:06:10and that is setting some alarm bells ringing
0:06:10 > 0:06:14because this is, if you wanted it to be a house of multiple occupation,
0:06:14 > 0:06:17because it's got three floors and five or more letable rooms,
0:06:17 > 0:06:22it puts it into a different category of HMO - licensable HMO.
0:06:22 > 0:06:25Well, in April 2006, the regulations got really tightened up
0:06:25 > 0:06:31and if you've got a licensable HMO, you have to put in fireproofing,
0:06:31 > 0:06:33you have to have fire alarms,
0:06:33 > 0:06:35you need certain facilities in the kitchen,
0:06:35 > 0:06:37a certain number of bathrooms.
0:06:37 > 0:06:40It's going to cost quite a lot of money
0:06:40 > 0:06:42and that has to be factored in to any budget.
0:06:45 > 0:06:49Whichever way you look at it, this is a very big job.
0:06:49 > 0:06:53The HMO regulations just add another layer of expense.
0:06:54 > 0:06:57But I've rather fallen for this place.
0:06:57 > 0:07:00It's got real charm and I like it.
0:07:03 > 0:07:07I invited a local estate agent along to find out what he thought.
0:07:07 > 0:07:11With so much to do here, is making it a house of multiple occupancy
0:07:11 > 0:07:12the best plan?
0:07:12 > 0:07:16We have very close links to the city centre and the university.
0:07:16 > 0:07:20But there's no off-street parking, which is a negative
0:07:20 > 0:07:23and of course, there's the expense of renovating it.
0:07:23 > 0:07:26'I've noticed it does need a lot of internal work doing to it,
0:07:26 > 0:07:30'regarding bathroom, kitchen, the windows could do with upgrading.
0:07:30 > 0:07:34'You could be looking at between £12,000 and £15,000.'
0:07:34 > 0:07:37Add that to the £112,000 guide price
0:07:37 > 0:07:42and you'd be looking at a cost of £124,000 to £127,000.
0:07:42 > 0:07:46To bring it up to the standard required for an HMO certification
0:07:46 > 0:07:48could be much more
0:07:48 > 0:07:51but from a rental investment point of view, it's probably worthwhile.
0:07:52 > 0:07:55I don't think it's suitable for private let.
0:07:55 > 0:07:57It will only bring in £600-£650,
0:07:57 > 0:07:59whereas if you use it as a student let,
0:07:59 > 0:08:02it could bring in between £1,150 and £1,200.
0:08:04 > 0:08:07That could work out at something like an 11% return
0:08:07 > 0:08:11but if you picked it up at the £112,000 guide price,
0:08:11 > 0:08:15how much could you sell it for, once the improvements are done?
0:08:16 > 0:08:18I think the value on the property once done up
0:08:18 > 0:08:21would be in the region of £155,000 to £160,000.
0:08:23 > 0:08:28In some ways it's a shame that so many properties like this have been converted into HMOs
0:08:28 > 0:08:31but I guess, financially, it does make sense,
0:08:31 > 0:08:34although you do need to check the local market conditions
0:08:34 > 0:08:36to make sure there is letting potential.
0:08:36 > 0:08:40So whoever buys this, will they be doing restoration or revenue?
0:08:40 > 0:08:43You can find out when we go to the auction.
0:08:47 > 0:08:50Lot number 26, Waldeck Road in Carrington.
0:08:50 > 0:08:52Extremely large Victorian semi.
0:08:52 > 0:08:54How much am I going to say for this one?
0:08:54 > 0:08:58105, I have, thank you. £105,000, opening bid.
0:08:58 > 0:09:02106. 107 is bid.
0:09:02 > 0:09:05108, 109.
0:09:05 > 0:09:08109,000 on the left. 110?
0:09:08 > 0:09:09110 is bid.
0:09:09 > 0:09:10111?
0:09:10 > 0:09:13At £110,000. Don't lose it.
0:09:13 > 0:09:16At £110,000. Going once.
0:09:16 > 0:09:18At 110,000, twice.
0:09:18 > 0:09:19Third and last.
0:09:19 > 0:09:21111 is bid.
0:09:21 > 0:09:2412, may I say? 112.
0:09:24 > 0:09:26I'll take the half. 111 and a half.
0:09:26 > 0:09:28112 for you, sir? I'll treat you the same.
0:09:28 > 0:09:30112 is bid.
0:09:30 > 0:09:32And a half. 113?
0:09:32 > 0:09:34113. Try another.
0:09:34 > 0:09:36113, five.
0:09:36 > 0:09:38£114,000 at the back.
0:09:38 > 0:09:41At 114, it's in the market, no mistake about that.
0:09:41 > 0:09:46At £114,000 once. 114 twice...
0:09:46 > 0:09:51Third and last time. We're selling at £114,000.
0:09:51 > 0:09:54Sold at 114. 280, thank you.
0:09:54 > 0:09:59So, for £114,000, the new owners of that Victorian semi
0:09:59 > 0:10:05are Bruce and Alexia, who live on this very road.
0:10:05 > 0:10:08Bruce is in the information and security business,
0:10:08 > 0:10:11while Alexia is a business and life coach.
0:10:11 > 0:10:13The couple recently got engaged
0:10:13 > 0:10:16and this is the first property they've bought together.
0:10:16 > 0:10:20- Bruce, Alexia, lovely to meet you - Hi.- Hi.- Congratulations.- Thank you.
0:10:20 > 0:10:23- Big house.- Yeah. - Why did you want to buy it?
0:10:23 > 0:10:25Well, it's a fantastic project.
0:10:25 > 0:10:28It's got loads of really nice features still in the property
0:10:28 > 0:10:32and it's a great opportunity for us to put our stamp on it, really.
0:10:32 > 0:10:34- With a view to what?- Living in it.
0:10:34 > 0:10:36- Living in it?- Yeah.- Yes.
0:10:36 > 0:10:38Wow! Now that really surprises me.
0:10:38 > 0:10:45How unusual to find somebody who's going to convert a property like this back into one house.
0:10:45 > 0:10:48- Yeah?- These days, generally, this was, I mean,
0:10:48 > 0:10:53to my mind, an obvious buy-to-let, HMO kind of thing.
0:10:53 > 0:10:57There's a very strong buy-to-let market in the centre of Nottingham.
0:10:57 > 0:11:00The university have developed a lot of student properties,
0:11:00 > 0:11:02so students don't want old properties.
0:11:02 > 0:11:05So this could've caught people out,
0:11:05 > 0:11:08because on the face of it, it is a perfect HMO.
0:11:08 > 0:11:12Yeah, it looks like it would be but having been there and done that,
0:11:12 > 0:11:14and found it's not really giving the rental returns,
0:11:14 > 0:11:18this is much better as a family home.
0:11:19 > 0:11:23This is all very exciting and a far cry from what I expected.
0:11:23 > 0:11:28As she has gone down the rental route before with a nearby property,
0:11:28 > 0:11:31Alexia has some experience of the local market.
0:11:31 > 0:11:34So if she says it'll work better as a family home,
0:11:34 > 0:11:36then I'm happy to agree.
0:11:36 > 0:11:38It could make a wonderful one.
0:11:38 > 0:11:40So, tell me - what are you gonna do?
0:11:40 > 0:11:44Well, everything has just got to get done, absolutely everything.
0:11:44 > 0:11:47Windows, central heating, wiring, kitchen, bathroom,
0:11:47 > 0:11:48redecorating.
0:11:48 > 0:11:51The wall between the kitchen and dining room is coming down
0:11:51 > 0:11:53to make a nice, large kitchen-dining area.
0:11:53 > 0:11:55We're sorting of exploring ideas,
0:11:55 > 0:12:01for example, how to have music available in all the different rooms, including the bathroom,
0:12:01 > 0:12:04- so we're looking at using...- Well...
0:12:04 > 0:12:08- What about a radio on the side? - Erm, a radio's a bit old school.
0:12:09 > 0:12:11# ..gather round
0:12:11 > 0:12:14# Then I'm wired for sound... #
0:12:14 > 0:12:16Well, that told me!
0:12:16 > 0:12:20Bruce and Alexia are obviously excited about their new home
0:12:20 > 0:12:21and so they should be.
0:12:21 > 0:12:23But they won't be doing the work themselves
0:12:23 > 0:12:29and having hi-tech sound systems installed sounds expensive.
0:12:29 > 0:12:31How much is it going to cost to do what you want to do?
0:12:31 > 0:12:34The budgets that we've been quoted already
0:12:34 > 0:12:37- have varied from £30,000 to £60,000, so...- Oh!
0:12:37 > 0:12:40Yeah. There's quite a big difference.
0:12:40 > 0:12:42So we're hoping to hit maybe the middle, 40 to 45.
0:12:42 > 0:12:45Some nasty cracks and bouncy floorboards.
0:12:45 > 0:12:49- Have you investigated those at all? - No.- Right.
0:12:49 > 0:12:53When we did the original purchase, there was some surveying included in that.
0:12:53 > 0:12:57But I'm going to get somebody to come in for a real, thorough look.
0:12:57 > 0:13:00What if they say it's bad and you've got serious problems?
0:13:00 > 0:13:02Well, I tend to be positive about things, you know,
0:13:02 > 0:13:06and we'll find a solution to whatever problem there is.
0:13:06 > 0:13:07OK. And what about timescales?
0:13:07 > 0:13:11- We're hoping to do it in about three months, four months.- Wow.
0:13:11 > 0:13:15Well, I'm delighted for you both and I can't wait to see what you do,
0:13:15 > 0:13:18especially seeing your audiovisual system.
0:13:18 > 0:13:24Yeah. I've now set ourselves up for a fall, haven't I?
0:13:24 > 0:13:26- Good luck to you both.- Thank you. - Well done.
0:13:26 > 0:13:29# I like small speakers
0:13:29 > 0:13:32# I like tall speakers
0:13:32 > 0:13:36# If they've music They're wired for sound. #
0:13:36 > 0:13:42Well, what a lovely surprise to discover that Bruce and Alexia are going to do this place up
0:13:42 > 0:13:46and return it to its Victorian splendour as a single family home.
0:13:46 > 0:13:48Is it the right financial thing to do?
0:13:48 > 0:13:49Well, maybe, maybe not
0:13:49 > 0:13:52but it's going to be a lovely project to take on.
0:13:52 > 0:13:57The big question of course, is will the money they've got be pumped into Victorian features
0:13:57 > 0:14:00or pumping music round the bathroom?
0:14:00 > 0:14:02You can find out later in the show.
0:14:05 > 0:14:08This is the historic heart of Faversham.
0:14:08 > 0:14:12It's one of England's most charming and historic market towns,
0:14:12 > 0:14:14packed with period properties,
0:14:14 > 0:14:17some of them dating back to the 13th century.
0:14:17 > 0:14:21You wouldn't think it but the town has an explosive history.
0:14:21 > 0:14:25It's been making gunpowder since 1573
0:14:25 > 0:14:27and it's said that without Faversham gunpowder,
0:14:27 > 0:14:31Britain's industrial revolution could never have taken place.
0:14:31 > 0:14:33With such a claim to fame,
0:14:33 > 0:14:37it's no wonder Faversham is considered the market town of kings.
0:14:42 > 0:14:44With all this fabulous period property around,
0:14:44 > 0:14:48Faversham is a great place to while away a few hours,
0:14:48 > 0:14:51wandering around the specialist shops and galleries.
0:14:51 > 0:14:53But there's no time for that right now
0:14:53 > 0:14:55because I have an auction lot to visit.
0:14:56 > 0:14:59I'm here to see a retail unit.
0:14:59 > 0:15:02It's situated in the centre of town, so it's really buzzing
0:15:02 > 0:15:04and fantastic for passing trade
0:15:04 > 0:15:08and with a guide price of only £65,000 to £70,000,
0:15:08 > 0:15:09it's also easy on the pocket.
0:15:09 > 0:15:12Let's have a look inside and see what's on offer.
0:15:13 > 0:15:16What we have here is a double-fronted unit
0:15:16 > 0:15:18in an attractive period property.
0:15:18 > 0:15:21It was last used as a book shop
0:15:21 > 0:15:23but has been unoccupied for a few years now.
0:15:25 > 0:15:28Well, it's certainly big in here!
0:15:28 > 0:15:30This is a good-sized commercial unit.
0:15:30 > 0:15:34You've got these three huge windows to display your wares
0:15:34 > 0:15:39and what I like about it is, it's located opposite well-known high-street shops.
0:15:39 > 0:15:43It's got high ceilings, giving you the sense of even more space
0:15:43 > 0:15:47and you've got lots of shelf and hanging room over there.
0:15:47 > 0:15:49But let's see if there's much storage out the back.
0:15:49 > 0:15:53For any business needing to carry replacement stock,
0:15:53 > 0:15:55storage is going to be essential.
0:15:55 > 0:15:58Sadly, all that's available back here is a small office space,
0:15:58 > 0:16:01with a toilet just beyond that.
0:16:01 > 0:16:06Never mind. I saw something back in the shop that might be worth investigating.
0:16:07 > 0:16:11Is there any more storage up this sweeping grand staircase?
0:16:12 > 0:16:14No! Just a wall.
0:16:14 > 0:16:16That's where it... Oh!
0:16:16 > 0:16:19That's where it all ends, unfortunately.
0:16:19 > 0:16:21Obviously, there's not an upstairs with this shop.
0:16:23 > 0:16:25Ouch! And my head just proved that.
0:16:25 > 0:16:30Yes, unfortunately, the rest of this building has been divided off
0:16:30 > 0:16:32and is not included in the auction lot.
0:16:33 > 0:16:37But why is there still a staircase in the room?
0:16:37 > 0:16:40Well, the answer is, that like many properties in Faversham,
0:16:40 > 0:16:42this building has listed status
0:16:42 > 0:16:46and the staircase is something that will have to stay.
0:16:49 > 0:16:52Now, I know a few things about this little, unassuming shop.
0:16:52 > 0:16:55I'm not sure of the exact date but I know it's Elizabethan
0:16:55 > 0:16:58and at one time, it was joined to next door's property.
0:16:58 > 0:17:02Now, prior to 1741, it was an inn
0:17:02 > 0:17:05and was later the residence of various surgeons
0:17:05 > 0:17:08until its conversion to business premises in the 19th century.
0:17:08 > 0:17:10So a colourful past.
0:17:10 > 0:17:14Let's hope its listed status doesn't stop somebody taking this on
0:17:14 > 0:17:17because in the right hands, it could have a colourful future.
0:17:18 > 0:17:23The busy shopping street is a very sweet scene for any budding business.
0:17:23 > 0:17:26Faversham seems to be alive and well,
0:17:26 > 0:17:27with shoppers of all ages.
0:17:27 > 0:17:32Does that £65-70,000 guide price look like a bargain buy?
0:17:33 > 0:17:36I asked a local estate agent along to tell me more.
0:17:39 > 0:17:42'In terms of the retail unit itself, it's double-fronted,
0:17:42 > 0:17:45'it's on a good pitch, it's a period property.
0:17:45 > 0:17:49'Preston Street is one of the main retail thoroughfares in this part of Faversham.'
0:17:49 > 0:17:52There's a number of well-known retailers in the locality
0:17:52 > 0:17:55and good footfall past the property,
0:17:55 > 0:17:58so I'd expect any retailer here to do well.
0:17:58 > 0:18:01That's sure to increase the demand for this place.
0:18:01 > 0:18:04So how much rental would an investor expect to get for it?
0:18:06 > 0:18:10You're looking at something in the order of £15 per square foot
0:18:10 > 0:18:13and I would expect this to rent at about £10,000 per annum.
0:18:13 > 0:18:16At the guide price of £65-70,000,
0:18:16 > 0:18:21a buyer could be looking at a 14% rental return on their investment.
0:18:29 > 0:18:32Steeped in history and situated in a great part of town,
0:18:32 > 0:18:36its layout and listed status may put some people off.
0:18:36 > 0:18:40But it's a character property that's realistically priced.
0:18:40 > 0:18:43Who fancied this commercial unit? Let's go to auction and find out.
0:18:48 > 0:18:50Lot number 60, Preston Street in Faversham.
0:18:50 > 0:18:5265, 70 is the guide.
0:18:52 > 0:18:55£65,000 to start me. What are you going to bid me?
0:18:55 > 0:18:56Start me at 60, then.
0:18:56 > 0:18:59At 60. £60,000. I'm not going any less than that.
0:18:59 > 0:19:0160. I'm on the way. I'm bid £60,000.
0:19:01 > 0:19:03Now 62. 62 I have.
0:19:03 > 0:19:05And four. And six.
0:19:05 > 0:19:08£68,000 I'm bid. Now 70 if you like.
0:19:08 > 0:19:1170 in a fresh place on the left-hand side.
0:19:11 > 0:19:1472? It's against all of you, at the back. At £70,000.
0:19:14 > 0:19:16I'm going to sell it, who's going to buy it?
0:19:16 > 0:19:2072. Just in time. And 74. And six.
0:19:20 > 0:19:2276, 78. If you like. 78 I've got.
0:19:22 > 0:19:24And 80. 80 I've got.
0:19:24 > 0:19:26And two. 82.
0:19:27 > 0:19:2980... one.
0:19:29 > 0:19:30OK. 81.
0:19:30 > 0:19:32And two. It's against you.
0:19:32 > 0:19:3482. And three.
0:19:34 > 0:19:3683. 83.
0:19:36 > 0:19:38And four. 84.
0:19:38 > 0:19:39Keep with it. Five?
0:19:39 > 0:19:4185. And six?
0:19:41 > 0:19:4286.
0:19:42 > 0:19:448? 88?
0:19:44 > 0:19:4687? Whatever?
0:19:46 > 0:19:49At £86,000 I've got, standing on my left-hand side.
0:19:49 > 0:19:52Your chance if you're out to come back in.
0:19:52 > 0:19:55At £86,000, standing on the left-hand side.
0:19:55 > 0:19:59For the first time. At £86,000, then, for the second.
0:19:59 > 0:20:01One more time. 87? No.
0:20:01 > 0:20:03At 86, third and final time, if you're all done...
0:20:03 > 0:20:05It's yours, sir, for £86,000.
0:20:05 > 0:20:08With the winning bid of 86,000,
0:20:08 > 0:20:13the new owners of the commercial unit are friends and business partners James and Jason.
0:20:13 > 0:20:15They own a sports shop locally
0:20:15 > 0:20:19and see this an addition to their expanding retail empire.
0:20:19 > 0:20:23- Jason and James, congratulations. - Thank you very much.
0:20:23 > 0:20:25- You've bought your shop.- Yup.
0:20:25 > 0:20:29- What did you want it for?- Jason and I are businessmen in this town,
0:20:29 > 0:20:30retailers,
0:20:30 > 0:20:35and we looked at various other shops in the town to expand our business
0:20:35 > 0:20:39and then when this opportunity came along, we thought we'd have a look.
0:20:39 > 0:20:42When we did come along, we thought this was just what we wanted.
0:20:42 > 0:20:47So we put our heads together with a greater team
0:20:47 > 0:20:50and off we went to auction and here we are now.
0:20:50 > 0:20:53- So who's the greater team? - The banks, solicitors,
0:20:53 > 0:20:56accountants, planners.
0:20:56 > 0:20:59I think any business in this current climate needs to call upon
0:20:59 > 0:21:01as many resources as it can
0:21:01 > 0:21:05and the greater team that we have has provided us with this opportunity.
0:21:05 > 0:21:08James, a former police detective,
0:21:08 > 0:21:11claims that he's responsible for the words.
0:21:11 > 0:21:14Jason, who used to be a landscape gardener, does the numbers.
0:21:15 > 0:21:18The pair of them never cross over
0:21:18 > 0:21:20but with the help of those around them,
0:21:20 > 0:21:22they've established a thriving sports shop
0:21:22 > 0:21:25just around the corner from their new premises.
0:21:25 > 0:21:28That came about when James's son joined Jason's youth football team
0:21:28 > 0:21:31and the guys have been friends ever since.
0:21:32 > 0:21:35Their new shop is also inspired by the kids.
0:21:35 > 0:21:37This time it's going to be a toy shop.
0:21:40 > 0:21:44Being a single father ages ago and then James being a single father,
0:21:44 > 0:21:48having our kids around us all the time, it just fell into place.
0:21:48 > 0:21:51Basically, they're our market research.
0:21:51 > 0:21:54We give them the catalogues, they say what the people want at school,
0:21:54 > 0:21:56we get it in the shop.
0:21:58 > 0:21:59A savvy move,
0:21:59 > 0:22:02as with limited storage space here,
0:22:02 > 0:22:05the last thing Jason and James need is to tie up shelf space
0:22:05 > 0:22:07with items that aren't selling.
0:22:08 > 0:22:13But what are they going to do to the premises to transform them into a toy shop?
0:22:13 > 0:22:17In particular, how are they going to incorporate those stairs?
0:22:18 > 0:22:21It's part of the listed part of the building,
0:22:21 > 0:22:24so it's going to have to be a feature.
0:22:24 > 0:22:26Now, there's a couple of ideas floating.
0:22:26 > 0:22:31Initially, I can see the quarterdeck of a pirate ship of some sort.
0:22:31 > 0:22:36- Yes!- Kids up there looking at some sort of product or making it an activity.
0:22:36 > 0:22:41- A-har, me hearties! - That's it. Rather than it just being a visual effect.
0:22:41 > 0:22:44We want them to utilise it and, you know, play with it.
0:22:44 > 0:22:46But we don't know yet, we'll have to see.
0:22:46 > 0:22:51Do you know what? I think that's a cracking idea. Kids will love that.
0:22:51 > 0:22:54And they'll remember this shop for something like that.
0:22:54 > 0:22:57So, Jason, what is your budget for this project?
0:22:57 > 0:23:01Well, we're in the region at the moment of round about 10,000.
0:23:01 > 0:23:05But that all depends on once we get the floor up
0:23:05 > 0:23:07and the condition of the floor.
0:23:07 > 0:23:10First thing's getting a sparky in and stripping the electrics
0:23:10 > 0:23:13and we'll see what we find as we go along.
0:23:14 > 0:23:16The guys have set themselves a two-month deadline
0:23:16 > 0:23:18to get this place up and running.
0:23:18 > 0:23:23However, numbers man Jason claims he'd move in sooner if he could.
0:23:23 > 0:23:27So with the pressure on, there's just one more thing I need to find out.
0:23:29 > 0:23:31What are you going to call the shop?
0:23:31 > 0:23:33It's gonna be The Toy Box.
0:23:33 > 0:23:35That is a great name. Who thought of that?
0:23:35 > 0:23:37Words.
0:23:37 > 0:23:40Words. You thought of that. Well done.
0:23:40 > 0:23:43Good luck with this and I can't wait to see what you do
0:23:43 > 0:23:47- to make it into a magical toy shop. - Thank you very much.- Thank you.
0:23:50 > 0:23:52What a great story
0:23:52 > 0:23:55and how lovely to hear James and Jason championing their team.
0:23:55 > 0:23:59But how will the boys in the greater team get on renovating this
0:23:59 > 0:24:02and will that staircase cause them layout problems?
0:24:02 > 0:24:04Will we come back to The Toy Box in full swing
0:24:04 > 0:24:08or will the boys be throwing their toys out of the pram?
0:24:08 > 0:24:10You can find out later on in the show.
0:24:12 > 0:24:14Still to come, this Exmouth bungalow
0:24:14 > 0:24:17has a few things you might take a shine to but...
0:24:17 > 0:24:22Not so sure about the fireplace. Varnished stone. Lovely.
0:24:24 > 0:24:27The boys in Faversham have a liquidity problem.
0:24:27 > 0:24:32Basically, we discovered there was a drip coming from upstairs.
0:24:34 > 0:24:39But first, are Bruce and Alexia on track with that Victorian semi in Nottingham?
0:24:39 > 0:24:42We're hoping to do it in about three months, four months.
0:24:48 > 0:24:50It's not often that I meet people
0:24:50 > 0:24:55who want to turn a property like this grand, old four-bedroom Victorian semi
0:24:55 > 0:24:57into a family home,
0:24:57 > 0:25:02especially when it's been previously rented out as a house of multiple occupancy.
0:25:02 > 0:25:07But that's exactly what newly engaged couple Alexia and Bruce have planned.
0:25:07 > 0:25:11They bought the house for £114,000 at auction
0:25:11 > 0:25:15and estimated spending a further £40-45,000
0:25:15 > 0:25:17to restore it to its former glory.
0:25:17 > 0:25:20But Bruce had some pretty un-Victorian ideas
0:25:20 > 0:25:21about what to do with it.
0:25:22 > 0:25:24We were exploring ideas,
0:25:24 > 0:25:27for example, how to have music available in all the rooms,
0:25:27 > 0:25:32- including the bathroom, so we're looking at using...- Well...
0:25:32 > 0:25:33What about a radio on the side?
0:25:33 > 0:25:36Erm, a radio's a bit old school.
0:25:37 > 0:25:42Well, it's six months since I met up with Bruce and Alexia.
0:25:42 > 0:25:45Will their renovation turn out to be music to my ears
0:25:45 > 0:25:46or just a bit of a racket?
0:25:50 > 0:25:54Wow! What a difference those six months have made.
0:25:54 > 0:25:57The couple have installed new windows throughout the property,
0:25:57 > 0:25:59new central heating,
0:25:59 > 0:26:00new plasterwork
0:26:00 > 0:26:04and a new flue and feature fireplace in the front room.
0:26:04 > 0:26:08Across the hallway, the narrow corridor to the kitchen has gone.
0:26:09 > 0:26:13The wall between the second reception room and the kitchen has also been removed,
0:26:13 > 0:26:15to create a large kitchen-dining area
0:26:15 > 0:26:19and what a fabulous improvement the new kitchen is.
0:26:21 > 0:26:23Most of the work here was done by professionals
0:26:23 > 0:26:26but closely managed by Alexia,
0:26:26 > 0:26:28though Bruce did get his hands dirty, too.
0:26:28 > 0:26:34The jobs that I remember, probably for painful reasons,
0:26:34 > 0:26:36would be the steaming to start off with
0:26:36 > 0:26:38and then the actual stripping, all the glue,
0:26:38 > 0:26:40the paper that came off.
0:26:40 > 0:26:44Looking at some of the choices of paper that people had put up -
0:26:44 > 0:26:47that was interesting, a trip in history.
0:26:47 > 0:26:50And then sealing it, painting it a couple of times,
0:26:50 > 0:26:52but actually over three floors.
0:26:52 > 0:26:55It's a lot more work than I thought it would be.
0:26:55 > 0:26:58Everything has turned out pretty much how we want it to be.
0:26:58 > 0:27:01We're really excited about moving in to the house, very.
0:27:01 > 0:27:05The couple are now just a few weeks away from moving in.
0:27:05 > 0:27:07But after all that hard work,
0:27:07 > 0:27:09has Bruce managed to fulfil his dream
0:27:09 > 0:27:12of getting music piped throughout the house?
0:27:12 > 0:27:16The network's been put in, so we've got Cat-5 cabling throughout.
0:27:16 > 0:27:19But my responsibility is to buy a media centre next,
0:27:19 > 0:27:22so, yeah, it's going to happen, that's the important thing.
0:27:22 > 0:27:25- And there will be music in the bathroom.- There will be.
0:27:26 > 0:27:32Well, Bruce and Alexia have got a lot further with that bathroom than piping music into it.
0:27:37 > 0:27:40Well, we've ripped the old bathroom out completely.
0:27:40 > 0:27:43So we've got a wet room, shower, a heated floor, Jacuzzi bath.
0:27:43 > 0:27:45We're really delighted.
0:27:45 > 0:27:49We've got a spare bathroom next door with a toilet. It's quite small.
0:27:49 > 0:27:53We're probably going to use it as an en suite for the spare room,
0:27:53 > 0:27:57so we'll have an en suite upstairs, but we're still pondering that one.
0:27:59 > 0:28:02Making that decision and finishing off the spare room
0:28:02 > 0:28:05are details that the couple are happy to delay for now.
0:28:05 > 0:28:08As both Bruce and Alexia work from home,
0:28:08 > 0:28:11they've decided they'll each have a room at the top of the house
0:28:11 > 0:28:13as an office.
0:28:13 > 0:28:16With those spaces and the master bedroom almost finished,
0:28:16 > 0:28:18there's not much left to do.
0:28:20 > 0:28:24The overrun has been, I'd say, maybe five weeks overrun
0:28:24 > 0:28:27and that is something I'm comfortable with
0:28:27 > 0:28:30because we didn't start until four weeks later at the beginning,
0:28:30 > 0:28:33because we couldn't get hold of some workmen.
0:28:33 > 0:28:37Again, there's been no real rush for us to move in any sooner
0:28:37 > 0:28:42because we've just sold our house, so it's worked out beautifully.
0:28:44 > 0:28:47As well as all the work the various tradesmen have done,
0:28:47 > 0:28:50and the time the couple have put in themselves,
0:28:50 > 0:28:53they also enlisted an interior designer friend to help.
0:28:53 > 0:28:59Alexia reckons that by putting a lot of time into researching and sourcing materials,
0:28:59 > 0:29:01she's managed to save a fortune.
0:29:01 > 0:29:06But this renovation has still cost around £50,000.
0:29:06 > 0:29:09That means their total outlay, including the purchase price,
0:29:09 > 0:29:12is about £164,000.
0:29:15 > 0:29:18We asked two local estate agents along
0:29:18 > 0:29:22to find out what they think of Bruce and Alexia's renovation.
0:29:24 > 0:29:28They've replastered the walls, they've knocked the kitchen through.
0:29:28 > 0:29:31It has kept the period features of the high ceilings and the coving.
0:29:31 > 0:29:34I do like the bathroom with the big double shower.
0:29:34 > 0:29:37I love the floor in the kitchen. I think it's wonderful.
0:29:37 > 0:29:40I like the bathroom, it's first class.
0:29:40 > 0:29:42I do think it would be a good idea
0:29:42 > 0:29:45to make the second option on the bathroom an en suite.
0:29:45 > 0:29:47When it's finished, it'll be fabulous.
0:29:47 > 0:29:51Clearly the estate agents are as impressed as I am
0:29:51 > 0:29:54with the result of Bruce and Alexia's work here.
0:29:54 > 0:29:59But was turning it into a family home the right decision financially?
0:29:59 > 0:30:02They've done the right thing, leaving it as a family home.
0:30:02 > 0:30:04There's nothing like it when it is restored
0:30:04 > 0:30:08and it's quite saturated, the rental market in this area.
0:30:08 > 0:30:12Personally, a student let would've been my option
0:30:12 > 0:30:16but there's more call for student letting in the town centre now.
0:30:16 > 0:30:22As a student rental, this place might have brought in around £1,200 per calendar month,
0:30:22 > 0:30:26though the ongoing costs of that type of short-term rental can be high.
0:30:26 > 0:30:30But as they'd tried that before in a property nearby,
0:30:30 > 0:30:32it wasn't something the couple wanted to repeat.
0:30:32 > 0:30:37It's never been even vaguely in the back of my mind
0:30:37 > 0:30:40to actually... to actually rent it
0:30:40 > 0:30:42and our neighbours love us because of that.
0:30:44 > 0:30:48It's always useful to make a good first impression on the neighbours
0:30:48 > 0:30:53but when it's finished, what sort of impression will this property make on potential buyers?
0:30:53 > 0:30:59Remember, Bruce and Alexia have spent about £164,000
0:30:59 > 0:31:00to get to this stage.
0:31:00 > 0:31:04I do feel this house may set the ceiling for the road
0:31:04 > 0:31:07but until you're brave enough to try it,
0:31:07 > 0:31:10I would market this house in the region of £190,000
0:31:10 > 0:31:12and hope to achieve it.
0:31:12 > 0:31:13When completed,
0:31:13 > 0:31:17I will market this property at between £190-£195,000.
0:31:20 > 0:31:24So that could be around £30,000 pre-tax profit
0:31:24 > 0:31:27if Bruce and Alexia decide to sell.
0:31:27 > 0:31:30I wanted to be sure that if we had to sell, we'd make a good return,
0:31:30 > 0:31:32so that's a good return on what we've done
0:31:32 > 0:31:34but we're going to enjoy it
0:31:34 > 0:31:37and if we sell it in a few years, the return will be even better.
0:31:37 > 0:31:40For now, it's time for a well-earned break
0:31:40 > 0:31:42and maybe a relaxing bath,
0:31:42 > 0:31:45once Bruce has got his media centre sorted out.
0:31:45 > 0:31:49But long term, the couple have much bigger plans.
0:31:49 > 0:31:52We're looking at international property projects at the moment,
0:31:52 > 0:31:55possibly a new-build in South America.
0:31:55 > 0:31:56Yeah.
0:31:56 > 0:31:59You see - ambitious.
0:31:59 > 0:32:02Today, Nottingham, tomorrow, South America.
0:32:02 > 0:32:04That's not something I say very often!
0:32:10 > 0:32:12Exmouth in Devon,
0:32:12 > 0:32:15with its sandy beaches and picturesque coastline,
0:32:15 > 0:32:16is a place to treasure.
0:32:16 > 0:32:20And by the looks of it, the residents here really do.
0:32:22 > 0:32:26What I always say, it's not just about the house you're buying,
0:32:26 > 0:32:27you're buying into an area,
0:32:27 > 0:32:30so when I stroll into a place like this, I think, fantastic.
0:32:30 > 0:32:34People look after their gardens, they're tending their properties.
0:32:34 > 0:32:35That's a great start.
0:32:35 > 0:32:37So what was up for auction?
0:32:37 > 0:32:40Well, a two-bedroom detached bungalow.
0:32:40 > 0:32:42It had a guide price of £150,000.
0:32:42 > 0:32:46Bit tired on the outside but definitely worth a look.
0:32:47 > 0:32:50It certainly is but as we all know too well,
0:32:50 > 0:32:52it might be a bit tired on the outside
0:32:52 > 0:32:56but that doesn't always mean it's worn out on the inside.
0:32:57 > 0:33:00Oh! What is that?
0:33:00 > 0:33:02I hate this kind of stuff.
0:33:02 > 0:33:04If you've got this in your house,
0:33:04 > 0:33:06really, seriously, please think about taking it out.
0:33:06 > 0:33:10It is such a dangerous thing. It's glass, it's not safety glass.
0:33:10 > 0:33:14If you fall into that, you just... I don't even want to think about it.
0:33:14 > 0:33:16Got a bit sidetracked there. Into the house.
0:33:16 > 0:33:22Here's the entrance. Loo here. Obviously, a walk-in bath there.
0:33:22 > 0:33:24Through to the bedrooms
0:33:24 > 0:33:28and then past more of this horrible glass into the lounge.
0:33:28 > 0:33:30This is a reasonable-sized space.
0:33:30 > 0:33:36Not so sure about the fireplace. Varnished stone - lovely.
0:33:36 > 0:33:39But the room itself, not a bad size.
0:33:39 > 0:33:42It's got the big windows onto the garden, which is good.
0:33:42 > 0:33:46More of these stupid wooden panels and more glass,
0:33:46 > 0:33:48leading you through into the kitchen.
0:33:48 > 0:33:52It's not in particularly bad condition, it's fairly serviceable.
0:33:52 > 0:33:56It's nice and light and airy, not least because of the glass panels.
0:33:56 > 0:33:59But they really, really have to go. Here endeth the lesson.
0:34:01 > 0:34:04But don't leave the classroom just yet,
0:34:04 > 0:34:07because there are a few lessons to be learnt from this bungalow,
0:34:07 > 0:34:10that went to auction guided at 150,000.
0:34:10 > 0:34:14Apart from those dangerous glass panels, that should go,
0:34:14 > 0:34:17you'd have to think carefully about that bathroom.
0:34:17 > 0:34:21The walk-in bath was obviously a great asset to the previous occupant.
0:34:21 > 0:34:24It might be sensible to leave it or update it
0:34:24 > 0:34:28if you aim to sell the bungalow to someone with similar mobility issues.
0:34:28 > 0:34:32But, of course, do research your market before you make any decision.
0:34:32 > 0:34:37So, first of two bedrooms there, then through to the second bedroom.
0:34:37 > 0:34:41Not a bad size, I have to say, and a few nice additional features.
0:34:41 > 0:34:45Fitted cupboards, they were probably quite expensive in their day.
0:34:45 > 0:34:48Not to everyone's taste but quite practical
0:34:48 > 0:34:49and they're nice to have.
0:34:52 > 0:34:54This could simply be refurbished.
0:34:54 > 0:34:58You could replace the doors to update this room.
0:34:58 > 0:35:02Once you've changed the decor, you'd have a nice little property.
0:35:02 > 0:35:06But does that potential extend to the outside?
0:35:10 > 0:35:14Well, at the rear of the property, a slight disappointment
0:35:14 > 0:35:17because there isn't actually that much space.
0:35:17 > 0:35:19However, if it was an older person,
0:35:19 > 0:35:21maybe they would want less garden
0:35:21 > 0:35:24and something like this, which is fairly low maintenance.
0:35:24 > 0:35:26It looks worse, actually, at the moment,
0:35:26 > 0:35:29because you've got all these weeds everywhere.
0:35:29 > 0:35:33A bit of tidying up, a few nice pots, this would be quite pleasant.
0:35:33 > 0:35:36For some people, it would be a negative, for others, it's a bonus.
0:35:38 > 0:35:41Again, the best way of making a success of this property
0:35:41 > 0:35:42is to do your research.
0:35:42 > 0:35:45If there is a demand for this courtyard style,
0:35:45 > 0:35:46then leave the concrete.
0:35:46 > 0:35:49If not, then think about laying some turf.
0:35:49 > 0:35:53Time to find out how a local estate agent will rate this bungalow.
0:35:53 > 0:35:56Is it a good example?
0:35:57 > 0:35:59It's in reasonable condition.
0:35:59 > 0:36:02What I mean by that is it doesn't need a new roof or new walls.
0:36:02 > 0:36:04It's a refurbishment project,
0:36:04 > 0:36:07so it's an interesting one and makes a great auction lot.
0:36:07 > 0:36:13So what does need to be done to bring this bungalow up to top selling speed?
0:36:14 > 0:36:17The property needs, really, a typical refurbishment project,
0:36:17 > 0:36:20from kitchen to bathroom, redecoration.
0:36:20 > 0:36:22Some of the walls need re-skimming.
0:36:22 > 0:36:26You might want to open the kitchen into a kitchen-breakfast room,
0:36:26 > 0:36:28so rearranging the lounge
0:36:28 > 0:36:31and possibly changing the door of the bathroom,
0:36:31 > 0:36:32so the lounge is a bit bigger.
0:36:32 > 0:36:34So plenty to do.
0:36:35 > 0:36:36Let's talk figures.
0:36:36 > 0:36:39How much could someone make from this bungalow,
0:36:39 > 0:36:41with its £150,000 guide price?
0:36:43 > 0:36:48Bungalows of this style and type and size, once renovated,
0:36:48 > 0:36:50could fetch in the region of £200,000.
0:36:55 > 0:37:00Well, bungalows are perennially popular and this is a nice one.
0:37:00 > 0:37:03Obviously, you want to get rid of those glass panels
0:37:03 > 0:37:06but I think there's money to be made, so a good one to go for.
0:37:06 > 0:37:09Let's find out who bought it when it went under the hammer.
0:37:11 > 0:37:1657 is 40a Cliston Avenue in Exmouth.
0:37:16 > 0:37:19That's a nice bungalow, nice address.
0:37:19 > 0:37:21How about 130?
0:37:21 > 0:37:23130. Choices. 130 there on my right.
0:37:23 > 0:37:26132, 135.
0:37:26 > 0:37:28138 for lot 57.
0:37:28 > 0:37:30140, 142.
0:37:30 > 0:37:33144. 144.
0:37:33 > 0:37:35146, 147. You saw it.
0:37:35 > 0:37:37148, sir, or not? 148.
0:37:37 > 0:37:41149. 149, I got. 150.
0:37:41 > 0:37:43151.
0:37:43 > 0:37:45151, I got. Half?
0:37:45 > 0:37:47151 and a half.
0:37:47 > 0:37:48152.
0:37:48 > 0:37:51152 and a half.
0:37:51 > 0:37:53153. 153.
0:37:53 > 0:37:56153 and a half. 154.
0:37:56 > 0:37:58A half. 155.
0:37:58 > 0:38:01A half. And six.
0:38:01 > 0:38:04And a half if you like it.
0:38:04 > 0:38:05156 and a half.
0:38:05 > 0:38:07157.
0:38:07 > 0:38:09157. Is there eight?
0:38:09 > 0:38:12158. 158. 158.
0:38:12 > 0:38:14At 158. Once.
0:38:14 > 0:38:16Twice.
0:38:16 > 0:38:20At 158. Would 500 do it? You're sure and done? Last chance?
0:38:20 > 0:38:23This gentleman's going to get this bungalow at 158. All done?
0:38:23 > 0:38:27And selling. Well done. 158. Gentleman here.
0:38:28 > 0:38:31And the successful bidders were John and Linda,
0:38:31 > 0:38:34who paid £158,000.
0:38:34 > 0:38:36I went to Cliston Avenue to meet them
0:38:36 > 0:38:39and find out their plans for the place.
0:38:39 > 0:38:43- John, Linda, lovely to meet you both. - Thank you.- Congratulations.
0:38:43 > 0:38:45Tell me why you wanted to buy the bungalow?
0:38:45 > 0:38:48Er, well, we're looking for a renovation project.
0:38:48 > 0:38:52We've done a bit of property developing before in a small way.
0:38:52 > 0:38:53- I've built my own house.- Wow.
0:38:53 > 0:38:56I just thought we'd like to have a go at something,
0:38:56 > 0:38:59- now the market seems to have bottomed out a little bit.- Right.
0:38:59 > 0:39:02So it's an investment, it's not for you to live in?
0:39:02 > 0:39:04No, no.
0:39:04 > 0:39:05I think we may rent it out, yeah,
0:39:05 > 0:39:09but I think, mainly, it's going to be sell-on.
0:39:09 > 0:39:11Right. Tell me a bit about you two, Linda.
0:39:11 > 0:39:14- I'm a retired farmer.- Right.
0:39:14 > 0:39:17I used to farm a big dairy farm in the middle of Devon
0:39:17 > 0:39:22and I was widowed about six years ago.
0:39:22 > 0:39:26And then I met this very nice gentleman four years ago
0:39:26 > 0:39:28when we were on a singles holiday in Zakynthos.
0:39:31 > 0:39:35Well, love was definitely in the Greek air for these two
0:39:35 > 0:39:39but as we know, the course of true love never runs that smoothly.
0:39:39 > 0:39:42Life-changing decisions had to be made.
0:39:42 > 0:39:46- Ron at the time was living up north. - In Derbyshire.
0:39:46 > 0:39:49So I decided to come down here in Devon.
0:39:49 > 0:39:52I came down here, lived in a motor home for about...
0:39:52 > 0:39:53Ooh, about a year and a half.
0:39:53 > 0:39:57- Did you have a normal house in the north?- I did, yes.
0:39:57 > 0:40:00- So you swapped that for a motor home in a field?- Yeah.
0:40:00 > 0:40:02You're a special lady, aren't you? Wow!
0:40:02 > 0:40:06- That was a great holiday, then. - It was a great holiday, yes!
0:40:06 > 0:40:11And that holiday romance has been going strong for four years.
0:40:13 > 0:40:17John has moved to Devon, where he's living in an apartment.
0:40:17 > 0:40:19Now they've bought this bungalow together.
0:40:19 > 0:40:23So what about the idea of getting involved in investment property?
0:40:23 > 0:40:25Well, I think it's er...
0:40:25 > 0:40:29It seems to be difficult to put investment into banks nowadays,
0:40:29 > 0:40:33you don't know what to do with it and if it's going to be safe and the return you're gonna get.
0:40:33 > 0:40:37So, as people say, you've got your bricks and mortar
0:40:37 > 0:40:40and I don't think that'll ever go away in this country.
0:40:40 > 0:40:44It's going to take time to recover but I think it's a good investment.
0:40:44 > 0:40:47What about your experience in property, Linda?
0:40:47 > 0:40:52I've owned property. I've got three other properties... No, four.
0:40:52 > 0:40:58Erm, so, I've got a bit of experience. I rent out properties.
0:40:58 > 0:41:03So, yes, I have got experience with renting out, the rental side.
0:41:03 > 0:41:06OK, so why this particular little place, then?
0:41:06 > 0:41:10Well, it's got potential. It's not been touched for about 30 years.
0:41:10 > 0:41:13I don't know Exmouth that well but it's one of the better areas.
0:41:13 > 0:41:17It's need a bit doing to it. It's not major building work
0:41:17 > 0:41:19but it's semi cosmetic.
0:41:19 > 0:41:22We're going to knock walls out, things like that.
0:41:22 > 0:41:24We just thought it looked really well.
0:41:24 > 0:41:26It was the investment level we wanted
0:41:26 > 0:41:28and so that was it, basically.
0:41:28 > 0:41:31It's clear that John and Linda are a couple
0:41:31 > 0:41:34who have really taken time to choose their investment property
0:41:34 > 0:41:39and knowing your market is crucial to make any project work.
0:41:39 > 0:41:43I think they're united in their decision - or are they?
0:41:43 > 0:41:46What did you like about it, Linda?
0:41:46 > 0:41:47Erm...
0:41:47 > 0:41:50- That much, eh?- Yeah!
0:41:53 > 0:41:56Was it a bit of influence from you to buy it, John?
0:41:56 > 0:42:00- I think I was more pushing it than Linda was.- You do surprise me.
0:42:03 > 0:42:06I'm sure that with four properties under her belt,
0:42:06 > 0:42:09Linda knows a thing or two about dressing them up
0:42:09 > 0:42:11and bringing the best out of them.
0:42:11 > 0:42:13This bungalow could certainly do with some of that
0:42:13 > 0:42:16because at the moment, it looks a tad on the bland side.
0:42:16 > 0:42:19So tell me exactly what you're going to do to the place?
0:42:19 > 0:42:22Right, well, we're going to absolutely gut it to start with.
0:42:22 > 0:42:24We're going to take the carpets out.
0:42:24 > 0:42:28I'm going to take that wall out and this one as well.
0:42:28 > 0:42:31Do the kitchen out completely, same with the bathroom.
0:42:31 > 0:42:36And then we're going to put a door into the bathroom from this side,
0:42:36 > 0:42:40block that one off and make this the whole lounge and living area.
0:42:40 > 0:42:42Just generally bring it up to date.
0:42:42 > 0:42:44So how much have you got set aside to do the work?
0:42:44 > 0:42:46We've got a rough budget
0:42:46 > 0:42:49and probably about 20, 25,000, something like that.
0:42:49 > 0:42:51And what kind of timescale?
0:42:51 > 0:42:54We're looking at three or four months.
0:42:54 > 0:42:55It's getting the contractors.
0:42:55 > 0:42:59- So you're not going to do the work? - I'm going to do the labouring.
0:42:59 > 0:43:02I'm a qualified electrician but that was years back.
0:43:02 > 0:43:05I'm just going to do the labouring, knocking walls down.
0:43:05 > 0:43:09Well, it's lovely to hear how you two met and how the story unfolded.
0:43:09 > 0:43:12Good luck with it all and I hope it turns out really well.
0:43:12 > 0:43:14- Thank you, Martin.- Cheers.
0:43:20 > 0:43:24So, love blossoming for Linda and John on an island in Greece
0:43:24 > 0:43:27and it all ends up with a wee development project in Exmouth.
0:43:27 > 0:43:32Somehow, I think John is slightly more enthusiastic about it than Linda.
0:43:32 > 0:43:35I'm a bit concerned that he's going to get contractors in to do the work
0:43:35 > 0:43:38and that can really push the budget up.
0:43:38 > 0:43:42You can find out how they get on later in the show.
0:43:45 > 0:43:48So they've bought the property, ordered the paint
0:43:48 > 0:43:52and decided on the bathroom suite, so they're ready to rock and roll!
0:43:52 > 0:43:55So has that performance got them five-star reviews
0:43:55 > 0:43:56or the thumbs down?
0:43:56 > 0:43:57Keep watching to find out.
0:43:57 > 0:44:01Earlier in the show, I met James and Jason,
0:44:01 > 0:44:04who'd bought this ground-floor shop unit
0:44:04 > 0:44:06in the historic town of Faversham, Kent.
0:44:08 > 0:44:12It was in a great location but had been empty for several years.
0:44:12 > 0:44:17James and Jason felt their plan to turn it into a traditional toy shop
0:44:17 > 0:44:20would be just what the property and the town needed.
0:44:22 > 0:44:25However, its status as a listed building
0:44:25 > 0:44:28meant that some things would have to stay put.
0:44:28 > 0:44:29In an old building like this,
0:44:29 > 0:44:33there was always the chance they'd uncover something unexpected.
0:44:33 > 0:44:37So has their £10,000 budget been enough?
0:44:39 > 0:44:42Three months on, did The Toy Box open on schedule?
0:44:42 > 0:44:45Numbers man Jason is over the moon!
0:44:46 > 0:44:50Well, we've been open roughly a month now.
0:44:50 > 0:44:53Customers, we've got coming back left, right and centre,
0:44:53 > 0:44:54which is really nice.
0:44:54 > 0:44:58We've got a completely different clientele to what we expected.
0:44:58 > 0:45:01The guys took a gamble on the range of products they chose
0:45:01 > 0:45:03but with their kids' guidance,
0:45:03 > 0:45:05it sounds as though they've come up trumps.
0:45:05 > 0:45:10Mainline sellers that we was umming and ahhing about whether we should get them in,
0:45:10 > 0:45:13a lot of the more traditional stuff, and they have gone boom.
0:45:13 > 0:45:16We're very happy with the way things are going.
0:45:16 > 0:45:18But getting to this point hasn't been child's play.
0:45:18 > 0:45:21They've had to have the whole unit rewired,
0:45:21 > 0:45:24which was a much bigger job than they'd expected.
0:45:25 > 0:45:30They also found a concrete floor where they'd expected a wooden one.
0:45:30 > 0:45:34That lead them on to uncover a damp issue in the basement.
0:45:35 > 0:45:40Basically, we discovered there was a drip coming from upstairs.
0:45:40 > 0:45:43The shop's been vacant for the last two and a half years
0:45:43 > 0:45:46and over that period of time, the drip has developed.
0:45:46 > 0:45:50When we went into the basement, it was in need of some repair,
0:45:50 > 0:45:53so we had to get that addressed and damp-proofed
0:45:53 > 0:45:56and now we're nice and warm and dry.
0:45:56 > 0:45:58As this is a leasehold property,
0:45:58 > 0:46:00sorting out the problems in the basement,
0:46:00 > 0:46:03which was not part of the guys' commercial unit,
0:46:03 > 0:46:06has been the responsibility of the freeholder.
0:46:06 > 0:46:10It wasn't difficult to rectify but did mean a slight delay.
0:46:10 > 0:46:14Also, working within the limits of that listed building status
0:46:14 > 0:46:17has been more challenging than they'd expected.
0:46:19 > 0:46:22What we had here was our listed staircase,
0:46:22 > 0:46:25which was very pretty but going nowhere,
0:46:25 > 0:46:28so it didn't really serve any need in the shop.
0:46:28 > 0:46:31Our initial idea was to build some sort of pirates' quarterdeck
0:46:31 > 0:46:34where children could play and enjoy their experience.
0:46:34 > 0:46:38Sadly, though, when we looked into the health and safety implications
0:46:38 > 0:46:42and the financial viability of such a project, it wasn't worthwhile.
0:46:42 > 0:46:44Instead, we've encased the staircase.
0:46:44 > 0:46:48We've now got this lovely worktop where they can push their trucks
0:46:48 > 0:46:51and play with their soldiers and enjoy themselves.
0:46:51 > 0:46:56# Jump on board
0:46:56 > 0:46:57# Take a ride... #
0:46:57 > 0:46:59Well, it's not the pirate ship I was hoping to see
0:46:59 > 0:47:02but it does get around the problem with the staircase.
0:47:02 > 0:47:04Allowing the kids to handle the toys
0:47:04 > 0:47:08is all part of James' and Jason's philosophy for the shop.
0:47:08 > 0:47:12Our main aim was to make sure everything's accessible to children,
0:47:12 > 0:47:14so we've got it all on stands,
0:47:14 > 0:47:17everything at the bottom is usable for the children.
0:47:17 > 0:47:21When you go further up the shelves, we go into the boxed stuff,
0:47:21 > 0:47:24which is more like jigsaws and chemistry sets,
0:47:24 > 0:47:28where children are hands-on but with parents' supervision.
0:47:28 > 0:47:32So the floor level up to the first set of shelves is all usable stuff.
0:47:32 > 0:47:36They clearly have a strong idea of what they wanted to achieve here.
0:47:36 > 0:47:40Of course, none of this would've been possible
0:47:40 > 0:47:43without the help of their advisers and backers behind the scenes.
0:47:43 > 0:47:48It's still James's responsibility to handle the words, of course,
0:47:48 > 0:47:51which leaves Jason to deal with the numbers.
0:47:51 > 0:47:55So, come on, Jason - how much did it all cost?
0:47:56 > 0:47:58Once we started cracking on with it,
0:47:58 > 0:48:04we managed to get it down to £7,623.46 in total.
0:48:04 > 0:48:08Wow! Jason really is on top of the numbers!
0:48:08 > 0:48:13That means they're well within their 10,000 budget
0:48:13 > 0:48:18and that all in all, they've spent just over £93,500 here.
0:48:21 > 0:48:24So with the shop now starting to find its feet,
0:48:24 > 0:48:28what will two local estate agents make of the work the guys have done?
0:48:30 > 0:48:32'My first impressions now that I'm back here
0:48:32 > 0:48:36'is that you walk up to the property, it's been repainted.
0:48:36 > 0:48:38'It's got good signage, really big shop windows.
0:48:38 > 0:48:40'It's well laid out.'
0:48:40 > 0:48:42It's not as smart inside as I'd have liked
0:48:42 > 0:48:44but it's good use of the space.
0:48:44 > 0:48:47'I think they've used the space pretty effectively.'
0:48:47 > 0:48:50It's got slightly more frontage to depth
0:48:50 > 0:48:53than you would normally want with a shop
0:48:53 > 0:48:55but that's not unexpected with an old building.
0:48:55 > 0:48:59Remember, there hasn't been a shop here for several years,
0:48:59 > 0:49:03so it will take a bit of time to become established.
0:49:04 > 0:49:06They'll refine the layout as they go.
0:49:07 > 0:49:11A thriving business here is bound to increase the value of the property
0:49:11 > 0:49:14but how much could they make from it right now?
0:49:16 > 0:49:20A rent for this property I would expect to be around £15 per square foot,
0:49:20 > 0:49:24which would give us an annual rent of round about £10,000.
0:49:24 > 0:49:28I would say between £10,000 and £12,000 per annum.
0:49:28 > 0:49:30Yeah, I'm happy with that. It's within our figures.
0:49:30 > 0:49:35So the rental return could be in the region of 10.5 to 12.5%
0:49:35 > 0:49:37from this retail unit.
0:49:37 > 0:49:42But as they've spent £93,500 buying and renovating the property,
0:49:42 > 0:49:44how much could they sell it for?
0:49:45 > 0:49:49If I was to offer this property on a vacant possession basis,
0:49:49 > 0:49:52I'd be looking at somewhere between £90,000 and £100,000.
0:49:52 > 0:49:54If I was to put it up for sale,
0:49:54 > 0:49:57I would expect somewhere in the order of £100,000.
0:49:57 > 0:50:00That's pleasing, knowing what work we've done here
0:50:00 > 0:50:03- and we're happy with that, yeah. - Yeah.
0:50:12 > 0:50:17Back to Exmouth now, where John and Linda paid £158,000
0:50:17 > 0:50:19for this rather tired bungalow.
0:50:19 > 0:50:21They met on holiday four years ago
0:50:21 > 0:50:24and John then moved down to Devon to be with Linda.
0:50:24 > 0:50:28He'd worked in construction for many years
0:50:28 > 0:50:30and Linda has four other properties,
0:50:30 > 0:50:33so it seemed an ideal first joint venture.
0:50:33 > 0:50:37Now, four months later, the work is finished.
0:50:38 > 0:50:41Outside, the weeds in the front garden have gone,
0:50:41 > 0:50:44replaced by a solitary palm in a pot.
0:50:44 > 0:50:47And round the back, it's been decked out very nicely.
0:50:53 > 0:50:57Inside, thankfully, those glass partitions have gone.
0:50:57 > 0:51:02The result - a large open-plan living room with an integrated kitchen.
0:51:02 > 0:51:03Much better!
0:51:03 > 0:51:06John gives us the low-down on the bungalow's refurbishment.
0:51:06 > 0:51:11Well, Linda and myself got stuck in as soon as we got the property,
0:51:11 > 0:51:12got the keys.
0:51:12 > 0:51:15We both worked on knocking the partitions down,
0:51:15 > 0:51:17we both spent a week and a half on that,
0:51:17 > 0:51:20just clearing the walls, ready for the plastering.
0:51:20 > 0:51:22The wallpaper was a real nightmare.
0:51:22 > 0:51:24Nearly every room in the house had woodchip on it
0:51:24 > 0:51:27and it had been on there a good few years, so it was solid
0:51:27 > 0:51:29and it had got grime on it and everything.
0:51:29 > 0:51:33It comes out in little pieces - it's a nightmare.
0:51:33 > 0:51:38But we got there and the builder came along and he expected to do that but we'd done it,
0:51:38 > 0:51:40so he could get stuck in straight away.
0:51:40 > 0:51:44Of course, less for the builders to do means more money in the bank.
0:51:44 > 0:51:47Well, it started with a holiday romance
0:51:47 > 0:51:51and now this romantic couple have successfully dipped their toes
0:51:51 > 0:51:53in the hot water of property development.
0:51:53 > 0:51:55So who did what?
0:51:55 > 0:52:00Linda's good on the finishing side and it's not my forte at all.
0:52:00 > 0:52:04I'm more hammers and sledgehammers and tools
0:52:04 > 0:52:06and getting people to work for me.
0:52:06 > 0:52:10You'll remember the bathroom had a large walk-in bath
0:52:10 > 0:52:13but John has now put in a conventional one
0:52:13 > 0:52:16and Linda has decorated with some very stylish tiles.
0:52:18 > 0:52:23But of course, the main thing that strikes you now when you walk in
0:52:23 > 0:52:24is this large living room.
0:52:25 > 0:52:28This is the kitchen area. We had quite a big partition here.
0:52:28 > 0:52:30It was dark, glazed.
0:52:30 > 0:52:33We knocked all this partitioning down and opened it up.
0:52:33 > 0:52:37There was a horrible boiler with a load of pipes through the ceiling.
0:52:37 > 0:52:39A dirty old fan in the window, there.
0:52:39 > 0:52:43So we've gutted it completely and we've got an integrated kitchen.
0:52:43 > 0:52:44Looks modern, looks clean
0:52:44 > 0:52:47and we're really pleased with the tiling, as well,
0:52:47 > 0:52:50and it's just brought it together, first class.
0:52:51 > 0:52:54John and Linda have really been hands-on here,
0:52:54 > 0:52:57doing the decoration themselves.
0:52:57 > 0:52:59Outside, John has been up on the roof.
0:52:59 > 0:53:02Yeah, well, the roof was a real mess.
0:53:02 > 0:53:04A lot of moss and fungus and grime on it,
0:53:04 > 0:53:0630 years' worth, probably more.
0:53:06 > 0:53:09I decided to jet-wash it myself.
0:53:09 > 0:53:12I think the neighbours were there with their phones,
0:53:12 > 0:53:15ready for me to do a Superman act and dive off the roof
0:53:15 > 0:53:17but I disappointed them and I didn't do it.
0:53:17 > 0:53:20And it's come out really well, it looks really good.
0:53:21 > 0:53:23Well, he's done a lot of work
0:53:23 > 0:53:27but John did get in some experts to lay the decking.
0:53:27 > 0:53:29We decided to open all the back up.
0:53:29 > 0:53:34There was a big concrete path down there, a load of concrete here that was doing nothing,
0:53:34 > 0:53:35a paved area down there.
0:53:35 > 0:53:38And basically, we've stripped the whole lot again
0:53:38 > 0:53:42and we put the decking in - south-facing garden.
0:53:42 > 0:53:46We've opened all the bottom up and we're going to landscape the bottom.
0:53:47 > 0:53:50How much has all the work cost?
0:53:50 > 0:53:52We had a budget of £20,000 to £25,000
0:53:52 > 0:53:55and because I've held the contractors down to prices,
0:53:55 > 0:53:59because I've shopped around for the materials,
0:53:59 > 0:54:01for the bathroom, for the kitchen and things like that,
0:54:01 > 0:54:04we've got it down to less than £16,000
0:54:04 > 0:54:06and I think that's about it.
0:54:07 > 0:54:10Time to see if John and Linda's hard work
0:54:10 > 0:54:12will be rewarded financially.
0:54:12 > 0:54:17Two local property experts should have all the facts and figures.
0:54:18 > 0:54:19First impressions are wow
0:54:19 > 0:54:22because since I was here for the first time,
0:54:22 > 0:54:24he's opened up the living room and the kitchen
0:54:24 > 0:54:28to create a wonderful open-plan area for the reception space,
0:54:28 > 0:54:32whilst the bedrooms and the bathroom have been refurbished to a high standard.
0:54:32 > 0:54:35They've done a really nice job.
0:54:35 > 0:54:37It's all clean and tidy and plain.
0:54:37 > 0:54:41There's nothing that anyone could object to. It's very good.
0:54:41 > 0:54:43'I love what the owner has done to the garden.
0:54:43 > 0:54:46'He's opened it up because it was quite a small space before,
0:54:46 > 0:54:48'a small courtyard garden.'
0:54:48 > 0:54:51The decking really opens it up to quite a spacious area.
0:54:51 > 0:54:53'The kerb appeal is quite good.
0:54:53 > 0:54:57'It's quite a plain building but they've made it look attractive.'
0:54:57 > 0:55:00That sounds like two big ticks to me.
0:55:00 > 0:55:04But how much rental income could John and Linda achieve
0:55:04 > 0:55:06if they decided to rent it out?
0:55:06 > 0:55:09A two-bed detached bungalow like this in this area
0:55:09 > 0:55:13should fetch somewhere between £700 and £750 per calendar month.
0:55:13 > 0:55:17There's really good demand. I would easily get £750 per calendar month.
0:55:17 > 0:55:19Fantastic figures, yeah.
0:55:19 > 0:55:22We were planning on selling but I think we need to go back
0:55:22 > 0:55:24and do our recalculations
0:55:24 > 0:55:27and look if it's worthwhile doing the rental.
0:55:27 > 0:55:31Hang on, John. Let's see if your initial plan to sell
0:55:31 > 0:55:33could still be the route to take.
0:55:33 > 0:55:37If I was to put the property up for sale, it would be in the region of £200,000.
0:55:37 > 0:55:41In the current market, I would expect to achieve about £200,000.
0:55:41 > 0:55:44How's that for a potential profit, John?
0:55:44 > 0:55:47Yeah, we bought it for 158.
0:55:47 > 0:55:51We got a few fees, that takes it up to 160.
0:55:51 > 0:55:54We spent 16 on it, so that's 176.
0:55:54 > 0:55:57So we're looking at perhaps 20, 25, there.
0:55:57 > 0:56:00A healthy set of numbers to report back to Linda.
0:56:00 > 0:56:02That should go down very well.
0:56:03 > 0:56:06She'll be very pleased with those figures -
0:56:06 > 0:56:08more than we expected for the rental, for sure,
0:56:08 > 0:56:11and the selling price is just about spot-on,
0:56:11 > 0:56:13so, yeah, well pleased.
0:56:13 > 0:56:16Has this bungalow now got them interested
0:56:16 > 0:56:18in further property projects?
0:56:18 > 0:56:21Definitely. We are gonna do more, yeah,
0:56:21 > 0:56:22and it's very interesting.
0:56:22 > 0:56:24It's nice to get on that learning curve
0:56:24 > 0:56:27and get back into house refurbishment
0:56:27 > 0:56:30and we're looking forward to another one.
0:56:30 > 0:56:31We're gonna have a holiday first.
0:56:31 > 0:56:35Remember, it all started for these two with a holiday romance,
0:56:35 > 0:56:39so that may well be the best place to plan their next project.
0:56:39 > 0:56:41Good luck, guys, and happy holidays.
0:56:45 > 0:56:47That's all the auction action for today.
0:56:47 > 0:56:50Join us soon for more budding bidders on Homes Under The Hammer.
0:56:50 > 0:56:52- See you then.- Goodbye.
0:57:13 > 0:57:15Subtitles by Red Bee Media Ltd
0:57:15 > 0:57:18E-mail subtitling@bbc.co.uk