0:00:02 > 0:00:07- When the going gets tough, the tough get going.- Especially in today's property market.
0:00:07 > 0:00:13This could be just the right time to buy at auction. Prices are lower than they've been in years.
0:00:39 > 0:00:43Buying a property at auction should be a low-hassle way of buying.
0:00:43 > 0:00:49However, you have to have done your homework or you'll find yourself in all sorts of trouble.
0:00:49 > 0:00:54The place could be riddled with problems. Or be your dream home.
0:00:54 > 0:00:58So let's find out what people bought on today's show.
0:01:00 > 0:01:07The new owner of this burnt-out three bedroom house near Salford will need a good sense of humour.
0:01:07 > 0:01:09No laughing matter.
0:01:09 > 0:01:16In south-east London, I find a four-bed semi with a guide price as attractive as its staircase.
0:01:16 > 0:01:19Calm down, Lucy. What a good start!
0:01:20 > 0:01:25And in Salcombe, Devon, you'll need to think outside the box at this tiny property.
0:01:27 > 0:01:30Not very big.
0:01:31 > 0:01:37All these properties have been sold at auction and we'll find out who bought them and what they paid
0:01:37 > 0:01:39when they went under the hammer.
0:01:42 > 0:01:47I'm on the outskirts of Salford in the north-west.
0:01:47 > 0:01:52I'm in Little Hulton, about 9 miles from Manchester city centre.
0:01:52 > 0:01:59An interesting fact about this place was that Christopher Eccleston, the Ninth Doctor Who, grew up here.
0:01:59 > 0:02:06But will the property I am here to see be a bit of a TARDIS or need a doctor to sort it out?
0:02:08 > 0:02:12Well, it's a long way from Little Hulton to Gallifrey,
0:02:12 > 0:02:18but with replacement and regeneration of its post-war local authority estates underway,
0:02:18 > 0:02:25it could be about to move forward. So could a shrewd investor capitalise on that?
0:02:25 > 0:02:31Well, the guide price was an almost unbelievable £5,000-£10,000.
0:02:31 > 0:02:35Yes, you did hear right. It's no joke.
0:02:35 > 0:02:38That's because the property...
0:02:38 > 0:02:42Well, the state of it is no laughing matter.
0:02:42 > 0:02:46If I was a Dalek, I know what I'd be saying.
0:02:46 > 0:02:49Exterminate! Exterminate!
0:02:49 > 0:02:53'You'll need more than a sonic screwdriver to fix this one.
0:02:53 > 0:02:57'You'd probably be better knocking it down and starting again,
0:02:57 > 0:03:04'but it gets tricky because this house is one of a group of three terraced properties.'
0:03:05 > 0:03:10Now the property is in such a state that I can't even get inside.
0:03:10 > 0:03:14As you can see...what can I say? It's been badly fire-damaged.
0:03:14 > 0:03:20It's right old wreck. Burnt out inside, the roof's all gone.
0:03:20 > 0:03:25It's a major work to get this place sorted out. And it gets more complicated.
0:03:25 > 0:03:31Next door is in a similar state. So you can't do this property without sorting out next door
0:03:31 > 0:03:37which gives all sorts of problems. So what, on the face of it, seems like a real nightmare...
0:03:37 > 0:03:39is.
0:03:40 > 0:03:47'With just one property up for grabs, your options are very limited here.'
0:03:47 > 0:03:53But it's not all doom and gloom. The property came with a legal pack which included a mining report.
0:03:53 > 0:04:00It thankfully says that this property is not within 200 metres of a coalmine.
0:04:01 > 0:04:03That's good news, then.
0:04:03 > 0:04:09'No mineshafts to worry about, then, but plenty of pitfalls and unknowns, too,
0:04:09 > 0:04:15'with no clear idea of the layout. Can a local estate agent help fill in some of the gaps?'
0:04:18 > 0:04:23It will have a lounge, dining room and kitchen to the rear.
0:04:23 > 0:04:27First floor will have three bedrooms, bathroom and separate WC.
0:04:27 > 0:04:33A lot of work to be done, depending on the structural level of what the fire has done as well.
0:04:33 > 0:04:38It's got to be in the region of £30,000, subject to roofworks.
0:04:38 > 0:04:43The sell-on value of the property in this current market is going to be about £40,000.
0:04:43 > 0:04:49- In future markets, it should increase.- 'So a buyer would need to have bought this place
0:04:49 > 0:04:56'for around the £5,000-£10,000 guide price to have any chance of making a profit.
0:04:57 > 0:05:02'Prices in this area have gone as high as £80,000-£90,000,
0:05:02 > 0:05:09'but unless the two adjoining properties are renovated, it will hold down the value of this one.'
0:05:09 > 0:05:16Best-case scenario here is to purchase the two buildings adjoining with the aim of renovating them, too,
0:05:16 > 0:05:20to own the whole block. In the short term, in this market,
0:05:20 > 0:05:26selling isn't the best option, so I'd look to renting them out and selling in the future.
0:05:26 > 0:05:33'Buying all three properties will have an impact on rental as well as resale values.'
0:05:33 > 0:05:38If all three are renovated, they'll rent for £400-£425 a month.
0:05:38 > 0:05:44If done by itself, without next door, it's going to be £300-£350.
0:05:46 > 0:05:51'So research is the key here. Find out about the adjoining properties
0:05:51 > 0:05:56'and you could be in with a chance of making a profit, long term.'
0:05:56 > 0:05:58TARDIS NOISES
0:06:02 > 0:06:08It would take Doctor Who and all his assistants, past and present, to sort this place out.
0:06:08 > 0:06:12You've got to ask, is it worth it? I'm not so sure.
0:06:12 > 0:06:16Let's see who fancied taking on the challenge.
0:06:18 > 0:06:23Lot 101A, which is 55 Wildbrook Road, Little Hulton.
0:06:23 > 0:06:28Vacant property, it's got fire damage. Needs work doing to it.
0:06:28 > 0:06:34But on that basis, who will give me £1,000 for it? Someone give me £1,000?
0:06:34 > 0:06:39Will you give me £1,000? 2? Can I say 2?
0:06:39 > 0:06:422,000 behind you. 3. 4.
0:06:43 > 0:06:465. 6. 7.
0:06:46 > 0:06:508? No. With you, sir, at 7. Looking for 8.
0:06:51 > 0:06:54Are we finished at 7?
0:06:54 > 0:06:58Will you give me 8, sir? 8, new bidder. 9.
0:06:58 > 0:06:5910?
0:07:01 > 0:07:03There's 10. 11?
0:07:03 > 0:07:06No? I'll take 10 and a half.
0:07:06 > 0:07:12No? 10 here, then. Going for the first time at 10.
0:07:12 > 0:07:14Second time at 10.
0:07:14 > 0:07:17Third and final time.
0:07:17 > 0:07:20£10,000. Are we finished?
0:07:20 > 0:07:24We are now, sir. It belongs to you. Number 951. Well done.
0:07:24 > 0:07:32'So with his bid of £10,000, the new owner is Italian-born former banker Attilio.
0:07:32 > 0:07:39'I met him outside the property to find out what he had planned for it.'
0:07:39 > 0:07:44- Attilio, nice to meet you. - Nice to meet you!- I hope you like a challenge!- Yes!
0:07:44 > 0:07:50- So why did you want to buy this? - I want to do something strange that I never did in my life.
0:07:50 > 0:07:56When I had a reason about things, they always turned out to be wrong. This time I went by instinct.
0:07:56 > 0:08:01- I saw there was a cheap property and I bought it.- Did you see it?- No.
0:08:02 > 0:08:08- One of those things, you know. - Right. So you just saw it in the auction catalogue.
0:08:08 > 0:08:13I saw it and the name Little Hulton looks very pretty.
0:08:13 > 0:08:17So I thought for that money I can't buy a second-hand car.
0:08:17 > 0:08:23I tried twice to come over here and look at it, but always there was some incident
0:08:23 > 0:08:28like I got lost on the road. In the end, I said I'll take a chance.
0:08:28 > 0:08:32# Come on and take a chance with me. #
0:08:32 > 0:08:37'Well, what a chance to take. Buying without viewing is risky.
0:08:37 > 0:08:41'Buying property that's fire damaged verges on the reckless.
0:08:41 > 0:08:45'So what does Attilio think now?'
0:08:45 > 0:08:48I thought, "My God, what have I done?"
0:08:48 > 0:08:55I asked a few friends to have a look and they said, you know, from their point of view
0:08:55 > 0:09:03I'd got what we call a sole. In Italy, sole is when somebody flogs you something worth nothing.
0:09:03 > 0:09:08- They think you were sold a pup. That's what we call it here.- Yeah!
0:09:08 > 0:09:10Throwing money away!
0:09:10 > 0:09:16- But it's all your fault! - It might be your fault!- My fault?!
0:09:16 > 0:09:24- Your programme encourage me to go to the auction!- I always tell people to look first! Don't blame me!
0:09:24 > 0:09:28I know, but it's away up here and it costs £100.
0:09:28 > 0:09:32So I thought I'd take a chance for £10,000 and that's it.
0:09:35 > 0:09:39'So Attilio didn't view the property or get a survey.
0:09:39 > 0:09:46'He just took a chance on the name Little Hulton and spent 10 grand.
0:09:46 > 0:09:51'I need to find out more.' Do you own other property?
0:09:51 > 0:09:57- I have two properties in Italy, but in this country this is the first.- Are they better than this?
0:09:57 > 0:10:03The one I have is on the beach. You can just walk into the sea.
0:10:03 > 0:10:09You dive, go back, have breakfast, then go back to the beach all day. Come and go as you please.
0:10:09 > 0:10:15- So a bit of a change to here. - A big change. But on the other hand your house is where your heart is.
0:10:15 > 0:10:21You've got your daughters here, your grandchildren, you want six months and six months.
0:10:21 > 0:10:24# Left your little daddy all alone... #
0:10:26 > 0:10:31'He worked in the UK from the late '70s to the early '90s,
0:10:31 > 0:10:37'but Attilio eventually decided to retire back in Italy. With three daughters in Britain,
0:10:37 > 0:10:45'even the beach couldn't lure him away from being close to them. But not too close, apparently.'
0:10:45 > 0:10:50I'm staying with one of my three daughters. Relatives are like shoes.
0:10:50 > 0:10:53The tighter and closer they are, the more they hurt.
0:10:53 > 0:10:56So I wanted a place of my own.
0:10:56 > 0:11:01'But I guess this is not exactly what Attilio had in mind.'
0:11:01 > 0:11:04Why not buy somewhere to move into?
0:11:04 > 0:11:08I have been trying for two months. I went to all the estate agents.
0:11:08 > 0:11:14"Can you find me a property for £80,000 cash?" They all offer me places nobody wants.
0:11:14 > 0:11:20And they want to flog it to me because he's got cash and doesn't see the problems.
0:11:20 > 0:11:26- And you bought this!- I bought this. But I'm still looking for a proper property, something suitable.
0:11:26 > 0:11:31In the area of, let's say, 5-10 miles from Stockport,
0:11:31 > 0:11:34I will buy it if the price is right.
0:11:34 > 0:11:39'In the meantime, Attilio is down 10 grand, plus his fees,
0:11:39 > 0:11:44'and has saddled himself with this place.' So what are the options?
0:11:44 > 0:11:49Well, either get rid of it straight away, in the next auction...
0:11:49 > 0:11:56- And what...?- Then you pay the fees and, if you sell, pay fees again. It costs another £1,700.
0:11:56 > 0:12:02So if you don't get at least what you paid for, you'd be out of pocket.
0:12:02 > 0:12:08I've been searching the local council to see who are the owners of the other two,
0:12:08 > 0:12:12what intentions they have to refurbish, to sell or buy mine.
0:12:12 > 0:12:14And, in the end, I will decide.
0:12:14 > 0:12:21- I am hopeful somebody comes along. I can't be the only fool.- You can't? - There must be somebody else.
0:12:22 > 0:12:28- But you did it with good intentions. - The intention was good, yes, the action wasn't!
0:12:28 > 0:12:33I know it hasn't turned out as you anticipated, but good luck.
0:12:33 > 0:12:35Thank you very much! I need luck!
0:12:35 > 0:12:38# Baby, won't you please come home? #
0:12:47 > 0:12:51So, be honest, would you have paid even £10,000 for this place?
0:12:51 > 0:12:57I'm not sure that Attilio wishes he had, and he's certainly got a lot of challenges ahead.
0:12:57 > 0:13:03He's got to sort out next door and decide what to do with it. Pretty grim options.
0:13:03 > 0:13:06Find out how he gets on later.
0:13:12 > 0:13:18I'm in Penge, south-east London, an area that has had a mixed reputation over the years.
0:13:18 > 0:13:25'What it lacks in fashion, it makes up for with lovely Victorian houses and decent transport links,
0:13:25 > 0:13:29'soon to be further improved with the East London Line.'
0:13:30 > 0:13:35The property I'm here to see today is a four-bedroom, semi-detached.
0:13:35 > 0:13:40It's got a guide price - wait for it - of £190,000.
0:13:40 > 0:13:45Anyone can see that is crazily low for a house of this size in London.
0:13:45 > 0:13:47Haha! Unless it's derelict.
0:13:47 > 0:13:53But no, here it is. At first glance, more of a gem than a shell, I'd say.
0:13:53 > 0:13:59Let's have a look inside through the biggest front door I've ever seen. I love that.
0:13:59 > 0:14:04'It looks as though they made them big and solid in Penge.
0:14:04 > 0:14:11'Houses in this street all look pretty authentic. With luck, we'll get some original features,
0:14:11 > 0:14:16'but with that guide price, let's hope I'm not disappointed.'
0:14:17 > 0:14:19Well, what an impact!
0:14:19 > 0:14:26Wow! from the outside, the house is certainly handsome, but inside...this blows me away.
0:14:26 > 0:14:32I was half expecting the ceiling to be waiting for me on the floor, but no, it's intact.
0:14:32 > 0:14:38It's absolutely amazing. Look at that staircase. You can just imagine Victorian ladies
0:14:38 > 0:14:42sweeping down the stairs with a grand piano playing.
0:14:42 > 0:14:45Calm down, Lucy. What a good start!
0:14:47 > 0:14:53'Splendid, magical, opulent. All those words could describe this entrance,
0:14:53 > 0:14:56'but I think WOW just covers it.
0:14:56 > 0:15:02'The Victorians loved this part of London and what a legacy they've left us.
0:15:02 > 0:15:09'Ceiling roses, original spindles and simple cornicing. Just look at that stairwell.'
0:15:09 > 0:15:17This is the front reception room and the wonderful proportions continue. You've even got your own chandelier!
0:15:17 > 0:15:23Putting my developer's head on, it's a shame the original windows have been replaced with UPVC.
0:15:23 > 0:15:28But some people do prefer double glazing and these are sash at least.
0:15:28 > 0:15:32The shutters have also disappeared. I'd get those reinstated.
0:15:32 > 0:15:38And the fireplace - that's long gone. This colour scheme, though, is terribly oppressive.
0:15:38 > 0:15:43Because of the scale of the house, you can almost take it.
0:15:43 > 0:15:49I've yet to find a reason for that super-low guide price. Fingers crossed I don't.
0:15:49 > 0:15:55'The ground floor covers a huge footprint. There's a small study with doors out to the back.
0:15:55 > 0:15:59'I say small, but it isn't really. Just the smallest here.
0:15:59 > 0:16:06'There's another big reception room with beautiful stripped floorboards leading to the modest kitchen.'
0:16:08 > 0:16:15With three reception rooms and this small kitchen, the best thing would be to knock through
0:16:15 > 0:16:21to create a kitchen diner. Now this is a large family home and, in my opinion,
0:16:21 > 0:16:27you really need an open plan living/eating space. One thing - before your plans race away -
0:16:27 > 0:16:31get a structural engineer in. This may be a supporting wall
0:16:31 > 0:16:35and you have to factor in all sorts of steel support costs.
0:16:35 > 0:16:38But it would really be worth it.
0:16:40 > 0:16:44'While you're knocking down that wall for a fabulous kitchen diner,
0:16:44 > 0:16:49'you may as well put double doors in to make use of that garden.
0:16:50 > 0:16:54'And, yes, it's absolutely vast.
0:16:55 > 0:17:01'Now I can't put it off any longer. I need to climb that grand staircase.'
0:17:04 > 0:17:10The space is equally impressive upstairs. You've got four fab double bedrooms here.
0:17:10 > 0:17:15And a bathroom and separate toilet. But the toilets let the house down.
0:17:15 > 0:17:17At the moment, you've only got one.
0:17:17 > 0:17:24Personally, I'd relocate this boiler, steal some of the bathroom space and create a shower room
0:17:24 > 0:17:29with the loo next door. The bedrooms aren't big enough for ensuites.
0:17:29 > 0:17:36Even if it would cost £3,000, it would be money well spent and worth it for family harmony!
0:17:38 > 0:17:44'There aren't many changes I'd make and you wouldn't need to do them all to make it habitable.
0:17:44 > 0:17:50'There's a bit of damp in some rooms, but that could be something as simple as leaky guttering.
0:17:51 > 0:17:58'The place has been rented out in the past, so there's the usual wear and tear, but not too much.
0:17:58 > 0:18:02'Get some neutral paint on the walls and it would be transformed.
0:18:03 > 0:18:10'Well, I'm sold. Let's find out what a local estate agent thinks of it.'
0:18:10 > 0:18:14This is a fantastic house to market. You just don't see them any more.
0:18:14 > 0:18:19The house would normally be converted into two or three flats,
0:18:19 > 0:18:24but it's still the original house, original features, the staircase, cornicing. Fantastic.
0:18:24 > 0:18:29The feeling of it is space, which makes you feel very free in it.
0:18:29 > 0:18:33There's room to move, which is fantastic.
0:18:33 > 0:18:38'How much would it cost to bring this splendid place up to standard?'
0:18:38 > 0:18:45You could probably spend £10,000 and get a really nice house. Or spend twice that for a fantastic house.
0:18:45 > 0:18:51'There's a bit of work to do, but will the valuation be more than the £190,000 guide price?'
0:18:51 > 0:18:57Looking at the house in its current state, I'd value it around the £360,000-£370,000 mark.
0:18:57 > 0:19:03With a little bit of TLC, the wall taken down between the kitchen and the walk-through room,
0:19:03 > 0:19:09bathroom done and just redecorated, I think you'd be looking somewhere between £450,000 and £500,000.
0:19:09 > 0:19:15All in all, I can't explain the guide price. The house is tired, but amazing! The location is great,
0:19:15 > 0:19:22it's on a pleasant road and near to good transport links. It could just be they had to sell at any price.
0:19:22 > 0:19:26And with such a low guide, interest could be heightened.
0:19:26 > 0:19:30Let's see who rose to the challenge at the auction.
0:19:32 > 0:19:375 Avington Grove, Penge, SE20.
0:19:37 > 0:19:41Where do you want to start? 150 to you.
0:19:41 > 0:19:44What's the next one?
0:19:44 > 0:19:49160? You really think you're going to get it at 160?
0:19:49 > 0:19:51175. Good.
0:19:51 > 0:19:54180. 185. 190 at the back.
0:19:54 > 0:19:57200. 205, yeah? 205.
0:19:57 > 0:20:00210. 215. 220.
0:20:00 > 0:20:02225.
0:20:02 > 0:20:04230. 235. 240.
0:20:04 > 0:20:07250. 251.
0:20:07 > 0:20:10252, down here. 252.
0:20:10 > 0:20:13253. 254. 255.
0:20:13 > 0:20:16260. 265.
0:20:16 > 0:20:18270. I'll take it down here. 275.
0:20:18 > 0:20:21280. 285.
0:20:21 > 0:20:23290. 295.
0:20:23 > 0:20:26300. 305. 310.
0:20:26 > 0:20:30315. 320. 325. 330.
0:20:30 > 0:20:33335. 340.
0:20:33 > 0:20:35345. 350.
0:20:35 > 0:20:39351. 352? No.
0:20:39 > 0:20:41351. First time.
0:20:41 > 0:20:46Second time. Third and last time. Have you all done?
0:20:48 > 0:20:53'For £351,000 - which was £161,000 over the guide price -
0:20:53 > 0:20:57'the new owner of that fabulous Victorian house is Simon.
0:20:57 > 0:21:02'It wasn't him bidding in the auction, so who was it?'
0:21:02 > 0:21:09It was my sister, Sandra. She went for me. I had an away day at work and I had to go.
0:21:09 > 0:21:15I had to miss the auction, unfortunately. But she did it for me.
0:21:15 > 0:21:19When you saw this house for the first time, did you get her advice?
0:21:19 > 0:21:24I did. I saw it in the catalogue. I saw it online.
0:21:24 > 0:21:27Straight away I found it very, very striking.
0:21:27 > 0:21:34I came down the next morning and had a look. It just blew me away. Then I phoned my sister
0:21:34 > 0:21:40so she drove down an hour later with her husband and son and we all looked at it.
0:21:40 > 0:21:44- And went, "Oh! Got to have it!" - Absolutely.
0:21:44 > 0:21:51'It's worth jumping for. This is a rare house that looks better in real life than in the catalogue.'
0:21:51 > 0:21:58It was only when I viewed it as part of the official viewing that I appreciated the scale of it.
0:21:58 > 0:22:01It's so big, which is great.
0:22:01 > 0:22:08There was quite a low guide price. When I saw it, I was taken aback with the low guide price.
0:22:08 > 0:22:12- Why do you think it was set so low? - I presume to generate interest.
0:22:12 > 0:22:15Some people thought they'd get it near to that price.
0:22:15 > 0:22:20We had worked out that it would go well above the guide price
0:22:20 > 0:22:24and, fortunately, my sister got the property for me.
0:22:24 > 0:22:28But it had been undervalued by a surveyor,
0:22:28 > 0:22:36which did present problems for me in terms of completion, but we were able to iron out those problems.
0:22:36 > 0:22:43'Having sorted out the mortgage, how is Simon going to improve his new home?'
0:22:43 > 0:22:49With the kitchen, there's a reception next door to that. I'll knock through to create a large kitchen diner.
0:22:49 > 0:22:56- It really needs that.- That's right. And there's no loo on the ground floor, so I need to sort that out.
0:22:56 > 0:23:02Upstairs, there's just the one large bathroom so I'll be looking at creating two bathrooms,
0:23:02 > 0:23:07possibly one with ensuite, which will be great for the master bedroom.
0:23:07 > 0:23:12'Some grand ideas, and I think the right ones,
0:23:12 > 0:23:17'but contact a structural engineer before removing walls.
0:23:17 > 0:23:23- 'Now over to Simon's sister.' How much do you love this staircase? - It's fantastic!
0:23:23 > 0:23:27- What did you love so much? - The character, the space.
0:23:27 > 0:23:33- The fact that there's so much that you can do.- When you first walked into the house
0:23:33 > 0:23:38- and you saw that, didn't it blow you away?- I just thought, "Wow!"
0:23:38 > 0:23:42- Gone With The Wind!- Did you? - Yeah, I thought it was fantastic.
0:23:42 > 0:23:47- So, tell me, did you want Simon to buy this house as much as he did?- Yes.
0:23:47 > 0:23:53I thought, "If you don't, I will." I loved the space, the character.
0:23:53 > 0:23:57Can't wait to help him restore it to its former glory.
0:23:57 > 0:24:03'It sounds as if Simon has some willing help, but what budget does he have?'
0:24:03 > 0:24:07Overall, probably, ballpark, £35-40K,
0:24:07 > 0:24:12but that depends on me selling my apartment in Spain.
0:24:12 > 0:24:18So phase one will probably be a couple of thousand on largely cosmetic work,
0:24:18 > 0:24:24tidying it up. The phase two we'll be able to do the more major work, like knocking through walls,
0:24:24 > 0:24:29doing up the kitchen, the bathroom and stuff like that.
0:24:32 > 0:24:38Simon has to wait for the sale of his Spanish home before he can really get cracking. So frustrating!
0:24:38 > 0:24:43I love his plans for the house, but his budget could easily double.
0:24:43 > 0:24:48Fireplaces and features, they don't come cheap, but what a project!
0:24:48 > 0:24:55And with his family on hand, I'm sure it'll be a huge success. Find out what happens later.
0:24:56 > 0:25:02Still to come: a property in Salcombe with options, but not the obvious ones.
0:25:02 > 0:25:06You couldn't use it to stay.
0:25:06 > 0:25:10In south-east London, can Simon's dream become reality?
0:25:10 > 0:25:16I'm thrilled with how it's turned out. It's unrecognisable from how it was.
0:25:18 > 0:25:23But first, did Attilio get his fingers burnt by the Salford semi?
0:25:23 > 0:25:26There must be somebody else!
0:25:31 > 0:25:39Little Hulton near Salford is an area that's been undergoing some transformation of late
0:25:39 > 0:25:45and there are good properties to be had, but Italian-born former banker Attilio didn't want one of those.
0:25:45 > 0:25:52He wanted this - a burnt-out, three-bedroom, end of terrace house that he bought for 10 grand.
0:25:52 > 0:25:58I saw the auction catalogue and the name Little Hulton looks very pretty.
0:25:58 > 0:26:02So I thought for that money I can't buy a second-hand car.
0:26:04 > 0:26:09'Now, like Attilio, you might think that at that price he can't go wrong,
0:26:09 > 0:26:14'but with the two adjoining properties in a similar state,
0:26:14 > 0:26:18'Attilio had to face up to some pretty tough choices.'
0:26:18 > 0:26:25Get rid of it straight away in the next auction and pay the fees again, another £1,700.
0:26:25 > 0:26:32So I've been searching the local council to see who owns the other two, what intention they have
0:26:32 > 0:26:38to refurbish, sell, or to buy my property. And in the end I will decide.
0:26:38 > 0:26:43'Well, five months on, just what did Attilio decide to do in the end?'
0:26:43 > 0:26:49It was a big help, the internet. I went through there to find out who were the people responsible,
0:26:49 > 0:26:54whether there was any plan in the area to redevelop the whole area,
0:26:54 > 0:26:58and the main thing was who owned the other two houses?
0:26:58 > 0:27:05I couldn't repair my roof without the other people concerned. The roof covered two houses.
0:27:05 > 0:27:12So I find out that the local council owned the other two places and I got in contact with them.
0:27:12 > 0:27:19'But the council had transferred those two houses, along with many others, to a local housing trust.
0:27:19 > 0:27:24'Their commercial asset manager, Jennifer, explains.'
0:27:24 > 0:27:28We were formed 12 months ago when the council did a stock transfer.
0:27:28 > 0:27:34We're a brand-new company and we owned the two properties next door.
0:27:34 > 0:27:39The third one had fallen into private ownership a number of years ago
0:27:39 > 0:27:43and they had been a blight on the area for a number of years.
0:27:43 > 0:27:47It's a big problem for the residents, a big issue.
0:27:47 > 0:27:52When the opportunity came up for us to purchase it at auction,
0:27:52 > 0:27:58we thought it was a great chance to deliver a big regeneration project to improve the area.
0:27:59 > 0:28:04'So Attilio did eventually decide to put it back into an auction.
0:28:04 > 0:28:09'He hoped to get the best possible price for it and cover his costs.'
0:28:09 > 0:28:16I thought I'd thrown £10,000 away, but when I went to the auction and the outcome was positive,
0:28:16 > 0:28:23I thought, well, I know, we have a saying in Italy that says... SPEAKS IN ITALIAN
0:28:23 > 0:28:27Which is, "Not all the evils come for damage."
0:28:27 > 0:28:34- After the evil, something good came and I made a profit. - 'Attilio bought it for £10,000.
0:28:34 > 0:28:40'So just how much profit did he end up with when he put it back into the auction?'
0:28:42 > 0:28:49I wanted 18 before the auction and when I went to the auction it was sold for £19,100.
0:28:52 > 0:28:58'After covering his costs, Attilio is emerging from this with around £5,000 profit,
0:28:58 > 0:29:05'but he knows he's been lucky. Now his advice to others will always be do your research.'
0:29:05 > 0:29:11If you don't, you will end up with my problem, but whereas I made a profit, you will make a loss.
0:29:11 > 0:29:14So think twice before the big step.
0:29:14 > 0:29:19'Attilio actually bought another property at the same auction,
0:29:19 > 0:29:22'but this time he's learnt his lesson.'
0:29:22 > 0:29:28This one, I saw it, I took a builder along, we walked all around, looked underneath cabinets,
0:29:28 > 0:29:33wardrobes, roof and everything. And it was worthwhile doing it.
0:29:33 > 0:29:40The house is there. I can move in any time, but for the time being I have not made up my mind yet.
0:29:40 > 0:29:46Whenever I want to move, I just furnish and that's it. Great. I can stay near my grandchildren,
0:29:46 > 0:29:52come and go as I please and not be restricted in my movements.
0:29:54 > 0:30:00'So it's a good result for Attilio. What about the poor old property? What's going to happen to that?
0:30:00 > 0:30:06'Well, the housing trust have already started improvements to it and the others alongside it.
0:30:06 > 0:30:12'Jennifer sees their latest purchase as a very positive step forward for the area.'
0:30:13 > 0:30:18To improve the way the area looks by doing something fantastic to those
0:30:18 > 0:30:25will not only improve those properties, but will have an effect on the others in the area, too.
0:30:30 > 0:30:35So just how big an effect could this regeneration have?
0:30:35 > 0:30:39We invited two local estate agents along to find out.
0:30:39 > 0:30:46'In the area, there's a lot of housing trusts coming in, taking over properties, renovating them
0:30:46 > 0:30:49'for rent or housing association sales.'
0:30:49 > 0:30:55It's helping with the area to not have so many derelict properties. And it's leading to sales.
0:30:55 > 0:30:59With the new build in recent years and now a major refurbishment
0:30:59 > 0:31:03of the whole housing estate, that's only good for the future.
0:31:03 > 0:31:09We've completed on two last week, selling two-beds in the region of £60,000.
0:31:09 > 0:31:11So things have moved along.
0:31:11 > 0:31:17'When I first visited, the estate agent estimated a resale value of £40,000
0:31:17 > 0:31:24'for this three-bedroom property once renovated. What does he think now the housing trust's doing it?'
0:31:24 > 0:31:27Now we're here for the second time,
0:31:27 > 0:31:30things have changed quite a bit.
0:31:30 > 0:31:38It's owned now by one vendor, they can deal with it in a totally different way and renovate correctly.
0:31:38 > 0:31:42We'd put it on the market in the region of £75,000.
0:31:42 > 0:31:45I'd estimate at £70,000.
0:31:47 > 0:31:53'The agents both estimated rental income of £400-£450 per calendar month.
0:31:53 > 0:31:58'The housing trust will need to put a considerable sum into this to renovate them,
0:31:58 > 0:32:03'but by doing them simultaneously they will also save a lot.
0:32:03 > 0:32:07'So what's the next move for Jennifer and the trust?'
0:32:09 > 0:32:15We think the future looks really bright for Little Hulton. We're investing lots of resources
0:32:15 > 0:32:22and developing strong relationships with our customers. We think we can deliver some great improvements.
0:32:31 > 0:32:38# If you're fond of sand dunes and salty air
0:32:40 > 0:32:45# Quaint little villages here and there... #
0:32:46 > 0:32:51South Devon. The South Hams, to be precise.
0:32:51 > 0:32:56As far as I'm concerned, Britain does not get more beautiful than this.
0:32:56 > 0:33:00It's popular with holidaymakers, a fantastic place to live
0:33:00 > 0:33:05and one of the most popular places in the area is Salcombe.
0:33:08 > 0:33:13'You can get there by car, of course, but on a day like today,
0:33:13 > 0:33:19'there seems to be only one appropriate way to head towards the town's quay.'
0:33:19 > 0:33:25# If you're fond of sand dunes and salty air... #
0:33:25 > 0:33:30Property prices in Salcombe are some of the highest in the country
0:33:30 > 0:33:35and have gone up dramatically in recent years,
0:33:35 > 0:33:42but it's easy to understand why. This fishing port is now a haven for yachties and the well-to-do.
0:33:42 > 0:33:48So when you hear about a property on sale here which had a guide price of just 12,000 quid...
0:33:50 > 0:33:52let me off the boat!
0:33:54 > 0:33:58# Fresh off the boat! Fresh off the boat!
0:33:58 > 0:34:03# Fresh off the boat! Fresh off the boat! #
0:34:03 > 0:34:08This is the very heart of Salcombe. This is where the property is located.
0:34:08 > 0:34:15It should give you a clue - it's not residential, it's commercial. It's round here somewhere.
0:34:20 > 0:34:22It's not very big.
0:34:27 > 0:34:30Well, that is an understatement.
0:34:30 > 0:34:34In property terms, it's microscopic.
0:34:34 > 0:34:38Um, let's just pace it out. It's about three metres that way
0:34:38 > 0:34:41by about one metre that way.
0:34:41 > 0:34:44Not much head height.
0:34:45 > 0:34:49So...realistically, what could you use this for?
0:34:49 > 0:34:51Well, it could be a small gallery.
0:34:51 > 0:34:55I don't know. A business of some sort?
0:34:55 > 0:35:00Maybe a taxi firm could set up here? I don't know.
0:35:00 > 0:35:02You'd have to think quite carefully.
0:35:02 > 0:35:09One thing for sure, you couldn't use it as somewhere to stay - well, maybe a blow-up bed.
0:35:09 > 0:35:12Planners wouldn't like that.
0:35:12 > 0:35:14Limited potential, I'd say.
0:35:14 > 0:35:18# Ain't that a shame... #
0:35:18 > 0:35:25'I wasn't expecting much for 12 grand, but even as a commercial property, this is very basic.
0:35:25 > 0:35:31'There's no running water or toilet facilities. Just a few plug sockets, an electric heater
0:35:31 > 0:35:34'and enough space for a desk.
0:35:34 > 0:35:40'It used to be part of the adjoining shop, but was separated off as a long leasehold some years ago.
0:35:40 > 0:35:47'It's been a jeweller's, a glass engravers and, more recently, a holiday lettings office.
0:35:47 > 0:35:52'With no room to extend or to store stock, what could you do with it?
0:35:52 > 0:35:57'Perhaps a local estate agent could offer some alternative suggestions.'
0:35:57 > 0:36:00As you've seen, it isn't the biggest.
0:36:00 > 0:36:07More than likely going to appeal to somebody who offers a service, more so than goods.
0:36:07 > 0:36:11If you don't need to store things, it's be great.
0:36:11 > 0:36:18I'd be using it as a base - a desk and a telephone. As simple as that.
0:36:22 > 0:36:28'It's not much larger than a phone box, but with its frontage in a prime location in Salcombe,
0:36:28 > 0:36:33'to the right business, this little space could be a big opportunity.'
0:36:33 > 0:36:37Salcombe is a particularly nice coastal town.
0:36:37 > 0:36:43Traditionally a holiday destination. A lot of second homes, London money is down here.
0:36:43 > 0:36:48The businesses we see around us survive mainly on summer trade,
0:36:48 > 0:36:51so when the sun's out they enjoy it and make good money.
0:36:53 > 0:36:59'With that guide price of £12,000, would there be any money to be made from this as a property investment?'
0:37:01 > 0:37:04If somebody developed the shop,
0:37:04 > 0:37:10it would possibly go for middle to late 20s, maybe a little more. There would be good interest.
0:37:10 > 0:37:14'If you got it at the guide price, you could double your money.
0:37:14 > 0:37:21'With a possible rental of £500 per calendar month, this place could pay for itself in just two years.'
0:37:25 > 0:37:31It's not exactly a holiday cottage overlooking the estuary, but this is a chance to invest in Salcombe.
0:37:31 > 0:37:37However, you've got to be careful. It's very much a seasonal place.
0:37:37 > 0:37:43Make sure your commercial opportunity is going to work year-round.
0:37:43 > 0:37:46Let's see who went for it.
0:37:50 > 0:37:5423 - 78 Forth Street. It is tiny.
0:37:54 > 0:38:00Room for a desk, someone to sit and perhaps chat to 2 or 3 people without moving too much to the music.
0:38:00 > 0:38:03Who's going to say £15,000?
0:38:03 > 0:38:0710, then. Not going less than 10. Someone will put their hand up.
0:38:07 > 0:38:12Thank you. 10 on my right. Do I have 12? 12. At 14.
0:38:12 > 0:38:1416, thank you.
0:38:14 > 0:38:1718. 19 - would that help?
0:38:17 > 0:38:1920. At 20.
0:38:19 > 0:38:2221 or not? OK, 20 half.
0:38:22 > 0:38:2620 half. 21. Looking out for a half somewhere.
0:38:26 > 0:38:2921 and a half. 22. 22 and a half.
0:38:29 > 0:38:34At 23. Have a think. 23 and a half.
0:38:34 > 0:38:3624? 24. Madam?
0:38:36 > 0:38:38A half. 24 and a half.
0:38:38 > 0:38:4025. At 25.
0:38:40 > 0:38:46Nice little unit. Good spot. At 25 on the phone. Half.
0:38:46 > 0:38:4926. 26 and a half.
0:38:49 > 0:38:5427. 27 and a half. At 27 and a half. He or she is thinking.
0:38:54 > 0:38:5927 and a half. At £27,500 for the first time.
0:39:00 > 0:39:04At £27,500, second time. Looking to the phone.
0:39:04 > 0:39:10At 27 and a half, the lady in the room's got it. At 27 and a half.
0:39:10 > 0:39:12Well done.
0:39:12 > 0:39:18'At £27,500, that small space went for a big sum,
0:39:18 > 0:39:21'well over the £12,000 guide price.
0:39:21 > 0:39:27'The new owners are Suzanne and her sister Angela. They own the sweet shop and the grocer's
0:39:27 > 0:39:33'on either side of the property. It's easy to see why they were extremely keen to get it.'
0:39:35 > 0:39:39- Angela, Suzanne, lovely to meet you both.- And you.
0:39:39 > 0:39:43Congratulations. What a fantastic place to meet you!
0:39:44 > 0:39:49Tell me about this place before we talk about the place you bought.
0:39:49 > 0:39:53- This shop we've had for 27 years. - Yeah, just about.
0:39:53 > 0:39:5927 years we've had this shop. Mike who owned it before us gave our dad a job.
0:39:59 > 0:40:05He wanted to move out of the country, so Dad said, "Do you fancy buying the sweet shop?"
0:40:05 > 0:40:12- So it's been in your family for 27 years.- But we've known it all our lives. We were brought up here.
0:40:12 > 0:40:16- This was our sweet shop. - We called in when we were little.
0:40:16 > 0:40:19# Sweet dreams are made of this... #
0:40:19 > 0:40:23'How lovely. It must be every child's dream to own a sweet shop
0:40:23 > 0:40:27'and Angela and Suzanne's dad made that happen for them.'
0:40:27 > 0:40:33- So, coming on to what you bought... - The postage stamp next door!
0:40:33 > 0:40:37I'm glad you're realistic about it. Not that big, is it, really?
0:40:37 > 0:40:41- No.- No. It just seemed the most sensible thing to do.
0:40:41 > 0:40:48We desperately needed storage room. That is our biggest problem, especially with the pantry,
0:40:48 > 0:40:55for our deliveries, so it just seemed an ideal investment to use it for storage.
0:40:55 > 0:41:00- So that's why you bought it. As a big cupboard.- Yeah. - Pretty much what it is!
0:41:00 > 0:41:04With advertising in the window!
0:41:04 > 0:41:08# Sweets for my sweet sugar for my honey... #
0:41:08 > 0:41:15'With sweets, sugar, honey and all manner of other items vying for space, their current premises
0:41:15 > 0:41:20'are bursting at the seams. Extra space will be extremely useful.
0:41:20 > 0:41:24'And it seems that was enough to put some people off bidding.'
0:41:24 > 0:41:31It was rather nice as far as local businesses were concerned, shops around here.
0:41:31 > 0:41:37I had various proprietors come in and say, "Are you going for next door?" and I would say yes
0:41:37 > 0:41:44- and they'd say, "Then we won't," which is rather nice.- So the locals actually supported you?- Yes.
0:41:44 > 0:41:50- "We won't bid against you." - Yes. In fact, there was someone down at the auction.
0:41:50 > 0:41:57I was looking around to see if there was anybody from Salcombe that I knew. There was a person I saw.
0:41:57 > 0:42:02And he didn't bid at all when he saw that I was bidding for it.
0:42:02 > 0:42:08'Unfortunately for the sisters, with two telephone bidders and a desirable location,
0:42:08 > 0:42:15'the price did rise considerably. But one local business that will benefit directly from their win
0:42:15 > 0:42:21'is the laundrette right behind. That gives me a chance to talk to another member of the family.'
0:42:21 > 0:42:25# Some of them want to get used by you... #
0:42:25 > 0:42:31- Betty, you're Angela and Suzanne's mum?- Yes.- And you run the laundrette.- This little laundrette!
0:42:31 > 0:42:34- It's so tiny!- Yes!
0:42:34 > 0:42:39- Brilliant.- But it does for the town. - I've sure it's a very valuable service.
0:42:39 > 0:42:44- What do you think about the girls buying...?- I'm thrilled to bits.
0:42:44 > 0:42:51I was thrilled to bits about it because the two girls have worked hard and they needed space.
0:42:51 > 0:42:55With that coming up on the market, they were lucky.
0:42:55 > 0:42:57How will it affect you here?
0:42:57 > 0:43:01- It won't affect us at all.- It might clear the corridor.- It will.
0:43:01 > 0:43:06The only thing that upsets me is the corridor. It never was like that.
0:43:06 > 0:43:09I'm always moaning.
0:43:09 > 0:43:14Do you think that even with this new place they'll have enough storage?
0:43:14 > 0:43:18- Yes, they will.- Really?- Yes. - For how long?
0:43:18 > 0:43:20Well, how long is a piece of string?
0:43:21 > 0:43:22Eh?
0:43:22 > 0:43:29'How long, indeed? But at least for a while Mum won't have to nag her daughters to tidy up.'
0:43:31 > 0:43:38# Sweet dreams are made of this Who am I to disagree... #
0:43:41 > 0:43:47It really feels like the right people made the winning bid at the auction.
0:43:47 > 0:43:51It seems like the local community agree. The only question is
0:43:51 > 0:43:57even with this extra place will Suzanne and Angela have enough space for all their stuff?
0:43:57 > 0:44:01I'm not so sure. You can find out later in the show.
0:44:04 > 0:44:09The months have slipped by since we first met our intrepid buyers.
0:44:09 > 0:44:14- How have they got on? Has it been a joy or a chore?- Let's find out.
0:44:14 > 0:44:20'Property developer Sandra had bought this four-bedroom Victorian house in Penge, south-east London,
0:44:20 > 0:44:23'on behalf of her brother Simon.
0:44:23 > 0:44:28'He didn't go to the auction and it went for £351,000,
0:44:28 > 0:44:32'which was £161,000 above the guide price.
0:44:32 > 0:44:36'With a rather wild garden and a bit of work required inside,
0:44:36 > 0:44:41'this was a grand building in need of sympathetic maintenance.'
0:44:42 > 0:44:49With the kitchen, there's a reception next door to that. I'll knock through to create a large kitchen diner.
0:44:54 > 0:44:58'Well, that's the wall Simon was talking about removing.
0:44:58 > 0:45:01'And what a difference it makes!
0:45:01 > 0:45:04'Just look at all that open space.
0:45:05 > 0:45:12'Has Man U fan Simon kept true to his colours? Or gone for something more neutral?
0:45:14 > 0:45:20'Oh, good. He has gone neutral. And that space just keeps going all the way to that garden.'
0:45:23 > 0:45:30I'm really thrilled with how it's turned out. It's unrecognisable from previously.
0:45:30 > 0:45:32I've opened it up.
0:45:32 > 0:45:38It's very airy, spacious, I really love the kitchen diner.
0:45:38 > 0:45:43This is the room where people tend to congregate.
0:45:43 > 0:45:49The fact now that I've got a really nice garden with the bi-folding doors means a fantastic backdrop to it.
0:46:00 > 0:46:03'Wow. It's looking so much better.
0:46:03 > 0:46:07'There are more doors and fewer walls.
0:46:09 > 0:46:15'And it's not only in the kitchen that Simon's made his mark. He's had time for other stylish touches.'
0:46:15 > 0:46:23The house is great, but I have to say this is my favourite feature of all - the fireplace.
0:46:23 > 0:46:29I'd been looking on the internet for several months. Couldn't find anything that I liked.
0:46:29 > 0:46:34Then I walked past a local shop and saw this in the front window. I had to have it.
0:46:34 > 0:46:39It was quite expensive - about £3,000 in total - but I think it's worth it.
0:46:39 > 0:46:45I just think it's a great feature and sets off this room really well.
0:46:45 > 0:46:51'From flaming red to red flames. That will keep him warm in the winter.
0:46:51 > 0:46:53'It's good to have home comforts.'
0:46:53 > 0:46:59There was one day where we went without water and my dad and I were living here
0:46:59 > 0:47:05and we had to have a toss-up as to who had the last of the hot water for a shower.
0:47:05 > 0:47:07Fortunately, I won that.
0:47:07 > 0:47:13'It wasn't only Simon's father who helped. His whole family and some friends mucked in.
0:47:13 > 0:47:20'He hopes their hard work will be rewarded soon with barbecues in that newly-tamed garden.
0:47:28 > 0:47:34'And surely Simon must have spent hours labouring to make it look so manicured now.'
0:47:36 > 0:47:41To be frank, I've never had a garden before, I don't know anything about gardening,
0:47:41 > 0:47:45I've been totally dependent on the gardener.
0:47:45 > 0:47:51He was the one who made me, or persuaded me, to be bolder in what I wanted to do.
0:47:51 > 0:47:57The patio, the work that was involved in doing that, I totally underestimated.
0:47:57 > 0:48:03I had my two brothers. They helped me to do a lot of the work. And a couple of labourers.
0:48:03 > 0:48:07With hindsight, I would have had professionals come in and do it.
0:48:07 > 0:48:11'It may have been hard work, but it looks great.
0:48:11 > 0:48:16'There's plenty of scope for entertaining. So the ground floor has certainly changed.
0:48:16 > 0:48:18'Let's check out upstairs.'
0:48:18 > 0:48:24As you can see, I haven't done much work up here yet, but I do have bold plans for it.
0:48:24 > 0:48:30There's the back bedroom. What I want to do is chop off the bathroom
0:48:30 > 0:48:35and use half of that for an ensuite. It'll be a nice master bedroom.
0:48:35 > 0:48:42Then I've got a separate WC here. I'm going to knock through to create a nice, large family bathroom.
0:48:42 > 0:48:46Then I'll put another ensuite in the next largest bedroom.
0:48:46 > 0:48:53That will be phase two. And then phase three, perhaps, will be to convert the loft,
0:48:53 > 0:48:58so maybe one large bedroom there, creating a five-bedroom house.
0:49:09 > 0:49:13'Even with the loft conversion and ensuite bathrooms still to be done,
0:49:13 > 0:49:19'Simon has brought this tired-looking Victorian house back to life.
0:49:26 > 0:49:30'But I imagine he hasn't done it at Victorian prices.'
0:49:40 > 0:49:43Ballpark figure, £60,000.
0:49:43 > 0:49:49Originally, I thought I would spend between £30,000 and £35,000.
0:49:49 > 0:49:54I sold my place in Spain so that's funded the refurbishment.
0:49:54 > 0:50:01I think, basically, my vision became bolder and I was happy, therefore, to spend the extra money.
0:50:03 > 0:50:09'Remember, it was his sister Sandra who started spending Simon's money at the auction.
0:50:09 > 0:50:16- 'I'd say it was a great buy.' - He absolutely loves it. It's his baby. He's very proud of it.
0:50:16 > 0:50:19He's lord of the manor now!
0:50:19 > 0:50:26This great big house that he's rattling around in. He loves it, and he's very proud of it.
0:50:26 > 0:50:28'And so he should be.
0:50:28 > 0:50:34'With 60 grand already spent, on top of the £351,000 purchase price,
0:50:34 > 0:50:39'we asked two local estate agents to come and have a look around.'
0:50:39 > 0:50:45The actual appearance of the property is a period Victorian property and it's very attractive.
0:50:45 > 0:50:52As you come in the door, then it's a gobsmacker. The work they've done is really good.
0:50:52 > 0:50:57The kitchen is amazing. They need to do this throughout the property.
0:50:57 > 0:51:02I'm pretty impressed. I could see that there was work going on
0:51:02 > 0:51:04and a bit of building work.
0:51:04 > 0:51:12As soon as you walk in, it's the wow factor. You can see straight through to the kitchen and garden.
0:51:12 > 0:51:15High ceilings, the real character of these houses.
0:51:15 > 0:51:18Vast volume spaces. Great.
0:51:18 > 0:51:25'That all sounds very positive. With £411,000 already invested in this property,
0:51:25 > 0:51:29'what do the estate agents value it at in its current state?'
0:51:29 > 0:51:35As it stands now, probably around £480,000-£500,000.
0:51:35 > 0:51:39You're probably looking around the half million mark.
0:51:39 > 0:51:44They've done a cracking job downstairs and can do upstairs.
0:51:44 > 0:51:48'With a valuation of £480,000-£500,000,
0:51:48 > 0:51:53'that's a profit so far of £69,000-£89,000!'
0:51:53 > 0:51:57Wow! That's fantastic. I'm really pleased.
0:51:57 > 0:52:03Although I've spent about £60,000 already, clearly there's quite a big profit margin,
0:52:03 > 0:52:08although I'm not looking to sell. And I've got plans for further work.
0:52:08 > 0:52:10I did say when I bought it
0:52:10 > 0:52:17that I wanted to return it to its former glory. Hopefully, I'm well on the road to doing that.
0:52:19 > 0:52:23# Come with me
0:52:23 > 0:52:29# And you'll be in a world of pure imagination... #
0:52:29 > 0:52:35'With its pretty quayside and quaint streets, Salcombe in Devon attracts many visitors.
0:52:35 > 0:52:40'For Angela and Suzanne, sisters with two shops catering to tourists,
0:52:40 > 0:52:46'it was their childhood dream come true. The sweetshop has been in the family for 27 years,
0:52:46 > 0:52:51'but carrying enough stock for it and the grocer's was a nightmare.
0:52:51 > 0:52:58'So when the tiny property in-between came up for grabs, they spent £27,500
0:52:58 > 0:53:01'to buy it at auction.
0:53:03 > 0:53:09'Three months on, with a coat of sugar-pink paint on the exterior and a new awning,
0:53:09 > 0:53:14'it feels much more in keeping with its sweetshop neighbour.
0:53:14 > 0:53:20'With only a few square metres, it's more like a glass elevator than Charlie's chocolate factory,
0:53:20 > 0:53:26'but as far as Suzanne is concerned, the sisters certainly got their hands on a winning ticket.'
0:53:29 > 0:53:34I don't think we realised just how valuable it was going to be to us.
0:53:35 > 0:53:40It's hard for people to understand the amount that was paid for it,
0:53:40 > 0:53:44but if they were in our situation, not just the sweetshop,
0:53:44 > 0:53:50but the big boxes, the deliveries come in, straight in out of the way, not blocking up the shop.
0:53:50 > 0:53:53We can look at it when we want to.
0:53:53 > 0:53:59If you're busy, you can unload it later on. It's much, much easier.
0:54:00 > 0:54:07'That kind of flexibility has meant they can buy in bigger bulk and manage their stock more effectively.
0:54:07 > 0:54:11'And it's made access to Mum's laundrette easier, too.'
0:54:15 > 0:54:20Now we don't have to keep anything in this alleyway at all. It looks good,
0:54:20 > 0:54:25it's better for the customers and is much better for everybody.
0:54:25 > 0:54:28# The sweetest feeling... #
0:54:28 > 0:54:32'The window is proving to be a useful display cabinet, too.'
0:54:35 > 0:54:39People say, "Oh! I didn't know you could get those any more!"
0:54:39 > 0:54:45They're amazed that there are still sweets they used to get still there in jars.
0:54:45 > 0:54:52- It's been a good selling point. - It has.- Whether we keep it like that I don't know.- I think we will.
0:54:52 > 0:54:54# Loving you-ou... #
0:54:57 > 0:55:03'At one point they considered renting out advertising space in the window to other businesses,
0:55:03 > 0:55:10'but it doesn't sound likely now. They have spent just a few hundred pounds tying this property in
0:55:10 > 0:55:13'with their others, mostly on the awning.
0:55:13 > 0:55:19'It takes their total investment for this one small room up to just over £28,000.
0:55:21 > 0:55:28'In the long term, it could be a very valuable addition to their other two businesses,
0:55:28 > 0:55:32'but in the short term, has it increased in value at all?
0:55:32 > 0:55:36'I invited a local property expert back to find out.
0:55:36 > 0:55:40'Was £28,000 too much to spend on this small space?'
0:55:40 > 0:55:44People might assume that the price per square foot was high.
0:55:44 > 0:55:48But the advantage to them of having the extra storage space -
0:55:48 > 0:55:52they had a couple of thousand pounds of stock lying around. It's secure.
0:55:52 > 0:55:57Yeah, it's probably proved useful to them and beneficial and worthwhile.
0:55:57 > 0:56:03'That certainly seems to be the view shared by their customers, but would it be worth anything to others?'
0:56:03 > 0:56:08In this instance, they were the ideal buyer for that space
0:56:08 > 0:56:13and they proved what it was worth to them by outbidding everybody else.
0:56:13 > 0:56:18What it's worth really is difficult to say, on the day, if they were to resell it.
0:56:22 > 0:56:29'It may not have much value to anyone else, but they know exactly what it's worth to them.'
0:56:29 > 0:56:32- To us it is invaluable.- Absolutely.
0:56:32 > 0:56:34Worth its weight in gold.
0:56:37 > 0:56:42That's it for today. Did our stories inspire you or put you off?
0:56:42 > 0:56:47We hope you've enjoyed hearing these despatches.
0:56:47 > 0:56:54- And there will be more on the next Homes Under The Hammer. - See you then!- Goodbye.
0:56:59 > 0:57:04Subtitles by Subtext for Red Bee Media Ltd - 2010
0:57:07 > 0:57:10Email subtitling@bbc.co.uk