0:00:02 > 0:00:04Hello. All sorts of properties come up for auction.
0:00:04 > 0:00:06We travel up and down the country
0:00:06 > 0:00:10looking at all manner of flats, bungalows, houses and pieces of land.
0:00:10 > 0:00:15Yes, they're all there to make people's dreams come true buying Homes Under The Hammer.
0:00:40 > 0:00:43If you're buying an investment property, there are all sorts of skills
0:00:43 > 0:00:47you need to learn before you can turn that all-important profit.
0:00:47 > 0:00:52Absolutely. Putting up wallpaper, managing a team of tradesmen, sticking to a budget -
0:00:52 > 0:00:54just three for starters.
0:00:54 > 0:00:57So here are the challenges facing our buyers on today's show.
0:00:58 > 0:01:05Near Wigan, this terraced house has potential to grow from three bedrooms to five.
0:01:05 > 0:01:07That could bring in big bucks.
0:01:08 > 0:01:14In Sheerness, Kent, this property is a bit on the small side,
0:01:14 > 0:01:17but it's incredibly close to the beach and that is a good thing.
0:01:18 > 0:01:24Devon may be a beautiful part of the country, but you wouldn't know it from the kitchen in this place.
0:01:24 > 0:01:26Look at the view out of the window.
0:01:26 > 0:01:28How depressing is that?
0:01:30 > 0:01:32All these properties have been sold at auction.
0:01:32 > 0:01:35We'll find out who bought them and what they paid for them
0:01:35 > 0:01:38- when they went under the hammer. - Well done, you.
0:01:42 > 0:01:47Our first property is in the town of Leigh, just a couple of miles from busy Wigan.
0:01:47 > 0:01:51It's popular with both owners and renters because of its plentiful
0:01:51 > 0:01:55transport links to Manchester and nearby Liverpool.
0:01:55 > 0:01:58I wonder if the house I'm here to see will be equally popular.
0:01:58 > 0:02:01This is something to bear in mind when looking at houses.
0:02:01 > 0:02:04If there is a pedestrian crossing like this close to it,
0:02:04 > 0:02:08which in this case there is, that noise could potentially drive you completely bonkers.
0:02:08 > 0:02:13Apart from that, the house is on, as you can hear, a very busy main road,
0:02:13 > 0:02:17- but the good news is that the guide price, 30 to 35... - CAR HORNS TOOT
0:02:17 > 0:02:24Hi, guys! ..thousand pounds! Which for a three-bedroom mid-terrace ain't bad.
0:02:24 > 0:02:31And about those transport links, I have to point out that they are right outside the front door.
0:02:31 > 0:02:33Well, that's a nice start.
0:02:33 > 0:02:38We've got a little entrance area there, double-glazed on the outside and then another door here.
0:02:38 > 0:02:43That gets rid of the least some of the noise from that road, which is great.
0:02:43 > 0:02:46And then straight into the property. Big front sitting room there.
0:02:46 > 0:02:49That could give us some interesting options.
0:02:49 > 0:02:55Stairs up to the bedrooms there, then through into the rear sitting room area and, again, a huge space.
0:02:55 > 0:03:01Now, straight away I'm thinking, OK, this is large enough to be a family living area, maybe that room there
0:03:01 > 0:03:05could be an extra bedroom. Now it gets interesting.
0:03:05 > 0:03:10But the kitchen - well, not brilliant, but I've seen worse.
0:03:10 > 0:03:14So, all in all, a good start.
0:03:14 > 0:03:16The rooms on the ground floor are well laid out.
0:03:16 > 0:03:20There's central heating in place and the electrics appear OK.
0:03:20 > 0:03:25The only negative so far is the lack of a downstairs loo.
0:03:25 > 0:03:29Let's see what the rest of the property has to offer.
0:03:29 > 0:03:33So, upstairs, three bedrooms, two reasonable-sized ones at the front,
0:03:33 > 0:03:40but look at the size of this bedroom at the back! It's absolutely huge.
0:03:40 > 0:03:47So, if you combine that with the potential of using that room downstairs at the front,
0:03:47 > 0:03:52I think we're into the territory of making the most of this house as a house of multiple occupation.
0:03:52 > 0:03:55That could bring in big bucks!
0:03:55 > 0:03:59However, there are some problems to deal with first.
0:03:59 > 0:04:04Several of the rooms have large areas of damp and, from the front of the house,
0:04:04 > 0:04:07it appears that the guttering will need attention.
0:04:07 > 0:04:13More ominously, look closely at the brickwork and there are signs that the front wall's leaning inward.
0:04:13 > 0:04:20That could mean taking down the whole of this front wall and erecting scaffolding.
0:04:20 > 0:04:24Now, this is a bit unusual. Steps down to the bathroom.
0:04:24 > 0:04:29The reason for that of course is that the whole of the rear of the property is one extension -
0:04:29 > 0:04:33kitchen downstairs and bathroom upstairs. That explains
0:04:33 > 0:04:36why the house feels so much bigger than it looks from the outside.
0:04:36 > 0:04:40Well, it's nice that the bathroom is at least upstairs,
0:04:40 > 0:04:43but I don't think they're really making the most of the space here.
0:04:43 > 0:04:49I think we need to have a shower, we could swap the suite around, definitely make more of this room
0:04:49 > 0:04:52and, of course, a few issues to resolve first,
0:04:52 > 0:04:56lots of damp on the wall there and damp coming through the beam. But, overall,
0:04:56 > 0:04:59you know, again it comes back to this is a good-sized house.
0:04:59 > 0:05:02So, for what looks like a standard terraced house
0:05:02 > 0:05:07there's a lot of square footage and, therefore, value for money.
0:05:07 > 0:05:10Mind you, I haven't checked everywhere yet.
0:05:10 > 0:05:14Well, at the back here you can see that extension that's been built on the house.
0:05:14 > 0:05:18It doesn't look like it's been completely finished. It's missing a final layer
0:05:18 > 0:05:22of render which could explain some of the damp inside.
0:05:22 > 0:05:25But what you've got out the back is a lot of space.
0:05:25 > 0:05:30I mean, you could put a bigger extension or I think something very exciting - parking spaces!
0:05:30 > 0:05:34That's not normally that interesting, however there's a very busy main road out the front
0:05:34 > 0:05:38and nowhere to park your car, so I just need to check if...
0:05:38 > 0:05:41Yeah, we've got a rear access road there which is fantastic
0:05:41 > 0:05:46because it means you can park your car off the street and add value to the house.
0:05:46 > 0:05:50Overall, this property does have some major problems,
0:05:50 > 0:05:56but I reckon that at the guide price of £30,000 to £35,000 it could prove a pretty positive investment.
0:05:56 > 0:06:00What does a local surveyor think it would take
0:06:00 > 0:06:02to get the place up to scratch?
0:06:02 > 0:06:05The property requires a reasonable schedule of refurbishment.
0:06:05 > 0:06:08There's some evidence of some penetrating damp on
0:06:08 > 0:06:11the front wall, bathrooms and kitchens want refurbishing.
0:06:11 > 0:06:17What about the potential if you turned the front room into a bedroom?
0:06:17 > 0:06:21It is possible to convert it into a house of multiple occupation if all regulations are met.
0:06:21 > 0:06:24Local authorities do tend to be quite strict,
0:06:24 > 0:06:28and the cost can be quite prohibitive, but that potential does exist.
0:06:28 > 0:06:29That's good news.
0:06:29 > 0:06:36The surveyor reckons there could be a rental return of between £350 and £375 per calendar month.
0:06:36 > 0:06:43Bearing in mind the top guide price of 35,000, what could the resale value be?
0:06:43 > 0:06:48If the property is refurbished to a good standard, with it having three-bedroomed accommodation,
0:06:48 > 0:06:51I would expect a resale value of about £60,000.
0:06:53 > 0:07:01Well, there are things that need to be done, maybe sorting out that front wall, certainly the guttering,
0:07:01 > 0:07:05get rid of some of these damp issues and finish off things like this extension,
0:07:05 > 0:07:09but bearing in mind the guide price of 30,000 to 35,000 quid,
0:07:09 > 0:07:13I think it was a great one to go for when it went to auction.
0:07:17 > 0:07:22Lot 98, which is 180 Chapel Street, Leigh, Wigan, Greater Manchester.
0:07:22 > 0:07:2415,000?
0:07:24 > 0:07:2715 here. 20?
0:07:27 > 0:07:2920? 20 there. 25.
0:07:29 > 0:07:3430. 35.
0:07:34 > 0:07:3840. 45? 40 with you then, sir.
0:07:38 > 0:07:41I'll take 41 if it helps.
0:07:41 > 0:07:4541? 41 there, thank you. 42?
0:07:45 > 0:07:4742 here. 43 at the back?
0:07:47 > 0:07:51No? At £42,000 on my right the first time.
0:07:51 > 0:07:56The second time at 42. Third and final time. Sold to you, sir.
0:07:56 > 0:07:59That cool-as-a-cucumber bidder was Carl.
0:07:59 > 0:08:05He bought the house for 42,000, 7,000 over the top guide price.
0:08:05 > 0:08:10I met him at the house along with his son, Jason, to hear about their purchase.
0:08:11 > 0:08:15Carl, Jason, good to meet you both. What was it you liked about the house?
0:08:15 > 0:08:21I'd not actually been in the house before we bought it. We just looked external viewing.
0:08:21 > 0:08:23Wow! What did you think when you walked in?
0:08:23 > 0:08:27As I expected. There's obviously quite a bit of work to do,
0:08:27 > 0:08:31but we expect that, so quite looking forward to start work, actually.
0:08:31 > 0:08:38This property was Carl's second choice at the auction, yet despite not being top of his wish list,
0:08:38 > 0:08:44he and Jason are already itching to get started on it, but does Jason realise what his dad has taken on
0:08:44 > 0:08:49because, like father like son, today is also his first visit here.
0:08:49 > 0:08:55I found out the price and that he'd not seen the property, I thought I'd come in here and it was just
0:08:55 > 0:09:00going to be a total wreck, no central heating system, but the central heating system is fully working.
0:09:00 > 0:09:05It's roasting in here now. Electrics look pretty good, so I think he's done quite well.
0:09:05 > 0:09:06It could have been a lot worse.
0:09:06 > 0:09:11I reckon Jason's pretty relieved because Carl actually bought the house for him
0:09:11 > 0:09:13to help him get on the property ladder.
0:09:13 > 0:09:19Carl has dabbled in properties over the past 25 years and reckons now is the right time to buy.
0:09:19 > 0:09:24So, what's his regular day job, or should that be night job?
0:09:26 > 0:09:32- I had a nightclub for over ten years and, obviously, that's still doing fairly well.- Good nightclub?
0:09:32 > 0:09:37Yeah, I think so, yeah. I like to think so. I'm not sure what everybody else thinks, but...
0:09:37 > 0:09:41- It's been going on for ten years, that's a lot longer than a lot of them!- It is,
0:09:41 > 0:09:43but I think it's time for a change.
0:09:43 > 0:09:47Obviously, I'm getting a bit too old now to stay up till five and six o'clock in the morning.
0:09:47 > 0:09:54Well, leaving the bright lights of the nightclub life behind and renovating a house may sound easy,
0:09:54 > 0:09:58but I just hope this project doesn't lead him a merry dance.
0:09:58 > 0:10:02MUSIC: "I Don't Feel Like Dancing" by the Scissor Sisters
0:10:03 > 0:10:06So what are their plans for it?
0:10:06 > 0:10:09Upstairs there's a lot... quite a lot of work to be done.
0:10:09 > 0:10:15The front elevation needs rebuilding, which is always an unknown quantity until you start.
0:10:15 > 0:10:19- You're going to completely rebuild the front?- Yeah. I think if you look, most...
0:10:19 > 0:10:23Next door's properties especially has recently been done,
0:10:23 > 0:10:28so I think it makes ours look quite subsided, actually, so obviously we'll do that first.
0:10:28 > 0:10:31We're just getting quotes for that at the moment.
0:10:31 > 0:10:34And then everything else is fairly, hopefully, straightforward.
0:10:34 > 0:10:39Rejig the bathroom to remove the three awkward steps down into it.
0:10:39 > 0:10:41- How are you going to do that? - Just lift the floor.
0:10:41 > 0:10:46- Oh!- The ceiling's a bit tight, but I'm hoping that we can raise the ceiling as well.
0:10:46 > 0:10:50I think hair-raising is how I would describe the problems on this place,
0:10:50 > 0:10:54though Carl and Jason seemed quite relaxed about the major task ahead.
0:10:54 > 0:10:58They've got a 20 grand budget for the entire renovation.
0:10:58 > 0:11:03They plan to do most of it themselves, but will leave specialist work to contractors.
0:11:03 > 0:11:07They have scheduled a 12-week turnaround and then it's in Jason's hands.
0:11:10 > 0:11:14Depending on what it's like when we've finished, I might move into this property
0:11:14 > 0:11:18or we might put the money into another property and do the same again,
0:11:18 > 0:11:21hopefully just building a bit more money up each time.
0:11:21 > 0:11:27- So you might potentially live here? - Yeah.- What will make the decision either way?- Probably the market.
0:11:27 > 0:11:32Seeing how the property prices rise and whether I like the area by the time we've finished working here,
0:11:32 > 0:11:35or if I want to still stay in my hometown.
0:11:35 > 0:11:38Would you have an input in terms of how you do it up differently
0:11:38 > 0:11:42- if you're not going to live here? - I don't think I'll have much input.
0:11:42 > 0:11:46- Don't you?- I'll be getting the blame for anything that goes wrong,
0:11:46 > 0:11:49and my dad will be taking the praise for anything that goes well!
0:11:49 > 0:11:55Let's hope there'll be lots of praise for Carl and Jason when this renovation is complete.
0:11:58 > 0:12:02Carl and Jason don't seem too fazed by the amount of work that's involved here,
0:12:02 > 0:12:05although I don't think they should underestimate it.
0:12:05 > 0:12:10It could turn out to be more than they expect, and they didn't see it before they bought it! Tsk, tsk!
0:12:10 > 0:12:13Who'll make the decisions? I think that's fairly obvious.
0:12:13 > 0:12:16Jason's big one is whether or not he will move in.
0:12:16 > 0:12:19You can find out later in the show.
0:12:33 > 0:12:38I'm in Sheerness, the main town on the Isle of Sheppey in Kent.
0:12:38 > 0:12:45Predictably the town developed around the sea and the Royal Naval dockyard established in the 17th century.
0:12:45 > 0:12:50Today the island's industry has died down, with it the local economy.
0:12:50 > 0:12:53But with Sheppey's holiday potential being recognised
0:12:53 > 0:12:57and with its beaches regularly receiving Blue Flag awards for their clean water,
0:12:57 > 0:12:59maybe there's hope for the future.
0:12:59 > 0:13:03Looking around, I certainly think there should be.
0:13:03 > 0:13:07Mile upon mile of spotless pebble beach and glistening water.
0:13:07 > 0:13:09It's a stunning spot.
0:13:09 > 0:13:12Just yards from the sea is Beach Street
0:13:12 > 0:13:16and rather excitingly the property I'm here to see.
0:13:16 > 0:13:21Now, imagine having that coastline just steps from your door. Fantastic!
0:13:21 > 0:13:25Now, the house itself is a standard two-bedroom terrace, but the guide
0:13:25 > 0:13:32is getting me excited - only 50,000 to 55,000. This part of Sheppey is mainly residential
0:13:32 > 0:13:37and straightaway I can see that parking is going to be an issue here.
0:13:37 > 0:13:45And that street lamp may look quaint, but what about when it's shining through your window at night?
0:13:45 > 0:13:47# Babe, I see your lamplight Shining from your window... #
0:13:47 > 0:13:50So you walk straight from the pavement into the reception room.
0:13:50 > 0:13:52Now, it's a bit on the small side.
0:13:52 > 0:13:56You've got low ceilings, not the biggest reception room I've seen,
0:13:56 > 0:14:01but you've got double glazing over here, a really nice little original fireplace.
0:14:01 > 0:14:03Through here you've got the stairs.
0:14:03 > 0:14:08Now, they're so narrow, they're steep, but I know you've got two bedrooms upstairs.
0:14:08 > 0:14:12In fact, the upstairs layout mirrors the downstairs one.
0:14:12 > 0:14:14The kitchen area to the back here.
0:14:14 > 0:14:17These kitchen units could do with a bit of an update,
0:14:17 > 0:14:21but it depends whether you're going to rent it out or use it as a holiday home.
0:14:21 > 0:14:23You could just jazz it up a little bit.
0:14:23 > 0:14:28Now this breakfast bar over here demonstrates that you can use this space
0:14:28 > 0:14:30to sit down and eat in the kitchen.
0:14:30 > 0:14:34There's also enough space over there to stick a table and chairs.
0:14:34 > 0:14:39So my feeling about this house is it is a little bit on the small side,
0:14:39 > 0:14:43but it's incredibly close to the beach and that is a good thing.
0:14:43 > 0:14:47That's definitely an advantage here and this house needs all the help it can get
0:14:47 > 0:14:49because everything's very small,
0:14:49 > 0:14:56including the bathroom off the kitchen, but looking on the positive side, it's not in bad shape.
0:14:56 > 0:15:01So the bathroom is downstairs, not ideal, but no surprises there.
0:15:01 > 0:15:05What isn't good is that this extension is probably single skin
0:15:05 > 0:15:08which would not comply with current building regs.
0:15:08 > 0:15:12It is however common in older houses in the area and it won't necessarily cause you
0:15:12 > 0:15:18immediate problems, but you need to get a surveyor around to check the structure is sound, check for damp
0:15:18 > 0:15:24and make sure that it's not going to cause you issues when you apply for a mortgage,
0:15:24 > 0:15:30and with lenders tightening their grip on cash, you don't want to give them any reason not to part with it.
0:15:30 > 0:15:36And while we're out here, the garden's exactly like the interior - small and compact.
0:15:36 > 0:15:38There's also an outside loo.
0:15:38 > 0:15:42Inside, up those steep stairs, there are two bedrooms, again small,
0:15:42 > 0:15:45though both are generally in good condition.
0:15:45 > 0:15:51But watch out for that faulty double glazing and damp patch in the front bedroom cupboard.
0:15:51 > 0:15:54It could just be a leaky tile, but worth checking the roof.
0:15:54 > 0:16:02So, at first glance, there's not a lot to do, but what exactly is the potential here?
0:16:02 > 0:16:06Well, houses in this area are never going to be worth a fortune
0:16:06 > 0:16:09and with the depressed market rental seems an obvious way to go.
0:16:09 > 0:16:14So, say you bought for the top end of the guide at 55,000,
0:16:14 > 0:16:18spend a modest five grand, so that's a total of £60,000.
0:16:18 > 0:16:24With rents at around £525 per calendar month that is over a 10% yield.
0:16:24 > 0:16:31I know what you're thinking - this little house by the sea isn't so washed up any more, eh?
0:16:31 > 0:16:34In fact, I'd say those sort of figures could leave you
0:16:34 > 0:16:36with a great little investment,
0:16:36 > 0:16:38but it's always worth getting a second opinion
0:16:38 > 0:16:41so I asked along a local estate agent
0:16:41 > 0:16:45to see what he thought of this two-bed terraced house.
0:16:45 > 0:16:47It's a nice little property.
0:16:47 > 0:16:49I mean, it's very cottagey, quite low ceilings.
0:16:49 > 0:16:52Obviously it's not the largest place in the world,
0:16:52 > 0:16:58but it is what it is and, obviously, cottages are quite sought after.
0:16:58 > 0:17:04With the house guided at between 50,000 and 55,000, would the numbers add up on this one?
0:17:06 > 0:17:11I think if you were to spend around £5,000 on the property, I think
0:17:11 > 0:17:14the property would then be worth in the region of 90,000, 95,000.
0:17:14 > 0:17:18What rental return could be achieved?
0:17:18 > 0:17:24I think this property would rent for approximately £550 per calendar month.
0:17:26 > 0:17:29This house on Beach Street may be your average terrace, but the rate
0:17:29 > 0:17:33you could achieve isn't an average return on your money these days.
0:17:33 > 0:17:36Try and find a bank to match that in interest rates!
0:17:36 > 0:17:42It's not exactly an exciting property, but as an investment it certainly floats my boat.
0:17:42 > 0:17:44Let's see if it set sail at the auction.
0:17:47 > 0:17:52Lot 35, ladies and gentlemen, is 7 Beach Street in Sheerness.
0:17:52 > 0:17:54Start me where you will. 50K anywhere?
0:17:54 > 0:17:57£50,000. It's in the room, it's going to be sold. 50,000 I've got.
0:17:57 > 0:18:00Five anywhere do I see? 55 I'm bid.
0:18:00 > 0:18:0560,000? It's against you. 60,000 can I say? 57? Have another look at that picture. Just...
0:18:05 > 0:18:0957 I've got. 57. 58 now somewhere.
0:18:09 > 0:18:1358. 59. 59. And 60.
0:18:13 > 0:18:17At 60. And one. 61. 61. And two.
0:18:17 > 0:18:1962. Three?
0:18:19 > 0:18:2163, thank you. And four.
0:18:21 > 0:18:2464. And five? 65?
0:18:24 > 0:18:2865. 66. 67, sir?
0:18:28 > 0:18:3167, I have. I'll take eight if it'll make a difference.
0:18:31 > 0:18:33If not 68... It has.
0:18:33 > 0:18:3669 against you at the back. 69.
0:18:36 > 0:18:40And 70. At 70. And one. 71.
0:18:40 > 0:18:4371. And two. And three.
0:18:43 > 0:18:4773 bid I have. 75 shall we say?
0:18:47 > 0:18:50Do you want to say 74, then? 74 I'm bid. 75 now if you like.
0:18:50 > 0:18:5475 I have. And six. And seven? 77?
0:18:54 > 0:18:57At 77? For the first time at 76.
0:18:57 > 0:19:00Second time at £76,000.
0:19:00 > 0:19:05Third and final time if you're all done. At £76,000 if we're all done. Yours, 76.
0:19:05 > 0:19:098086, thank you very much. 76,000.
0:19:09 > 0:19:14The winning bidders were Nick and Richard, business partners from London.
0:19:14 > 0:19:18The pair have been thinking about investing in property together for a while
0:19:18 > 0:19:21and this little house fitted the bill perfectly.
0:19:21 > 0:19:25I persuaded them to leave the beach to tell me more about their plans.
0:19:25 > 0:19:31Guys, congratulations. Now, did you think you would win this property on the day?
0:19:31 > 0:19:35We thought we'd have a good go for it. We weren't sure what would happen at the auction,
0:19:35 > 0:19:39but we thought we'd go quite a lot over the estimate and see what happened.
0:19:39 > 0:19:42So what was your top price that you would have paid for this?
0:19:42 > 0:19:47I thought we were going to go a bit lower, but I think, Rich, you had in mind something a bit higher.
0:19:47 > 0:19:50- I think you were going to go 79. - We were going to go 79,000.
0:19:50 > 0:19:54"WE would have gone 79". You didn't discuss this then before the auction!
0:19:54 > 0:19:57There was a slight discussion, but I think Rich...
0:19:57 > 0:19:58We... We do go...
0:19:58 > 0:20:02We do auctions ourselves so, Rich, you're usually the one
0:20:02 > 0:20:05that decides the actual top price when we're buying and selling.
0:20:05 > 0:20:10- So it was in your hands on the day, Richard. - I remember it differently.
0:20:10 > 0:20:14I thought we had discussed it and we decided 79,000 between us.
0:20:14 > 0:20:18Despite not agreeing on exactly how much they were going to bid,
0:20:18 > 0:20:22Richard and Nick are happy with the 76,000 they eventually paid.
0:20:22 > 0:20:25They certainly did their homework on this house.
0:20:25 > 0:20:29They attended a property auction to get the feel of them, read the legal pack
0:20:29 > 0:20:33and had a good look around the property first, so big ticks there!
0:20:33 > 0:20:36But have they been so thorough with their sums?
0:20:36 > 0:20:44We have chatted to a few local estate agents and we're hoping that I think between 525 and 575 a month.
0:20:44 > 0:20:48So I think that's the ballpark figure that's been quoted.
0:20:48 > 0:20:51So, that is about a 10% yield on this, isn't it?
0:20:51 > 0:20:54- Yeah, I think it is, yeah.- Which is great. No bank could do that for you.
0:20:54 > 0:20:58- That's fantastic!- Yeah, we're quite pleased. We're just hoping
0:20:58 > 0:21:03that there isn't any underlying sort of problems that we haven't spotted yet, like damp and...
0:21:03 > 0:21:07serious damp problems and issues like that that we need to look into,
0:21:07 > 0:21:09but, fingers crossed, you know, it'll be OK.
0:21:09 > 0:21:14Apart from that damp patch upstairs and the trapped condensation in the
0:21:14 > 0:21:18double glazing, the place is structurally in good shape.
0:21:18 > 0:21:20With most of their planned work cosmetic,
0:21:20 > 0:21:25Richard and Nick are hoping that a £5,000 renovation over four to five weeks should do the trick.
0:21:25 > 0:21:30The only real worry is that outside extension.
0:21:30 > 0:21:33We're not quite sure about the extension at the back with the bathroom in.
0:21:33 > 0:21:37We've had a couple of conflicting opinions about how the wall is made up
0:21:37 > 0:21:40and we need to get somebody in to look at that.
0:21:40 > 0:21:43On first glance, it looks like it could be single skin.
0:21:43 > 0:21:46Yeah, we're quite concerned about that because we would like to,
0:21:46 > 0:21:51I think in the future, perhaps, you know borrow and then purchase another property.
0:21:51 > 0:21:53But I mean, I think we can...
0:21:53 > 0:21:57I don't think it's insurmountable, so I'm sure we can get a builder in to extend that wall.
0:21:57 > 0:22:02It's our first time, we might make some mistakes and I'm sure we'll learn lots of things along the way,
0:22:02 > 0:22:07but as long as nothing is insurmountable, we're happy to take it on and see what happens.
0:22:07 > 0:22:11It's good to see they have a positive attitude to their first venture.
0:22:11 > 0:22:15They run a collectables business and this house is hopefully a new line in property collection.
0:22:15 > 0:22:20Their long term aim is to build up a rental portfolio, but I was keen to
0:22:20 > 0:22:26discover why, if they're both based in London, did they choose Sheerness?
0:22:26 > 0:22:30There's a lot of regeneration going on and I think English summer holidays
0:22:30 > 0:22:31are happening more often now.
0:22:31 > 0:22:35I think people are coming to seaside resorts in the summer more in Britain
0:22:35 > 0:22:39rather than travelling abroad, so maybe that's another thing that's good.
0:22:39 > 0:22:44- So are you quite excited about the future and what this may hold for you?- Yeah, definitely.
0:22:44 > 0:22:47If we can make this work we can make the next one work as well,
0:22:47 > 0:22:54so we want to try and hopefully get a few properties and reap the benefits if the market does improve.
0:22:58 > 0:23:04Richard and Nick, despite spending over the guide price, have still got themselves a decent investment.
0:23:04 > 0:23:08However, that extension could throw a spanner in the works and I just
0:23:08 > 0:23:13hope this house by the beach turns out to be more treasure trove than sinking ship.
0:23:13 > 0:23:17You can find out how they get on later on in the show.
0:23:17 > 0:23:23Still to come, in this attractive Devon village, a 1970s house that doesn't quite hit the mark.
0:23:23 > 0:23:27It's not bad, but it's not really going to rock your boat.
0:23:28 > 0:23:35In Sheerness, Kent, could this small two-bed terrace be a renovation project to dream of?
0:23:35 > 0:23:39It was in fairly good condition, so we didn't see the need to change anything.
0:23:40 > 0:23:47But first, did Carl and Jason convert this place into something worth making a song and dance about?
0:23:50 > 0:23:53We return to Leigh near Wigan where nightclub owner Carl
0:23:53 > 0:23:58bought this three-bedroom terraced house for £42,000.
0:23:58 > 0:24:01That was 7,000 over the guide price.
0:24:01 > 0:24:06He bought it for his son Jason, not only as a new home, but also
0:24:06 > 0:24:08as a first step on to the property ladder.
0:24:08 > 0:24:13But before he could move in, there were a few areas that needed attention.
0:24:13 > 0:24:18The front elevation needed rebuilding and there was rampant damp to deal with.
0:24:18 > 0:24:22Carl wanted to step aside from his normal job of running a nightclub,
0:24:22 > 0:24:27but I hope this project didn't end up giving him some sleepless nights.
0:24:30 > 0:24:36Well, when we return three months later, it looks like the whole front elevation has been rebuilt
0:24:36 > 0:24:42and it now has that all-important kerb appeal.
0:24:43 > 0:24:50Inside, that front living room has been redecorated and new flooring laid.
0:24:50 > 0:24:53And it's the same in the dining room.
0:24:55 > 0:24:56And the kitchen.
0:24:58 > 0:25:03Removing the utility area wall has created a bigger space
0:25:03 > 0:25:07so there's now more room to cook up tasty meals.
0:25:07 > 0:25:10And upstairs...
0:25:10 > 0:25:13Well, basically, we decided to start again.
0:25:13 > 0:25:15Obviously, took everything apart.
0:25:15 > 0:25:19We wanted to open it up a bit more than it was before,
0:25:19 > 0:25:23do away with the horrible corridor to the front bedroom.
0:25:23 > 0:25:25Obviously, once we'd achieved that,
0:25:25 > 0:25:30then we managed to create a centre bathroom which then gave us a fourth bedroom
0:25:30 > 0:25:36at the rear of the property, so I think, obviously, it's worked out really well and we're quite pleased.
0:25:36 > 0:25:42The centre bathroom, you know, everything's come in.
0:25:42 > 0:25:46It's not a tiny bathroom, it's quite a nice size, quite bright and light.
0:25:46 > 0:25:50We've put a sun tunnel in as well which gives that added benefit of extra light
0:25:50 > 0:25:52so you don't come in a really dark space.
0:25:52 > 0:25:57Even on a dull day, you get quite a bit of daylight into the bathroom, which is a good bonus.
0:25:57 > 0:26:04So the new bathroom has been made from the back of the large middle bedroom,
0:26:04 > 0:26:07while a new toilet has been made out of the old bathroom.
0:26:07 > 0:26:11So the whole top floor has undergone a major reconfiguration
0:26:11 > 0:26:16and Jason wasn't sure when all this wall-moving was going to stop.
0:26:16 > 0:26:20It was quite exciting, really. We started off taking one wall down and the next day
0:26:20 > 0:26:26we'd take another wall down, and then my dad would say, "Right, that's enough, no more walls,"
0:26:26 > 0:26:29and then the next day he'd say, "I've decided to take another wall down."
0:26:29 > 0:26:33But, I mean, we needed to take the walls down to get the layout we wanted.
0:26:33 > 0:26:38Carl and Jason got busy with the sledgehammers on that internal layout
0:26:38 > 0:26:40while contractors dealt with the front elevation.
0:26:40 > 0:26:46They took it down brick by brick and rebuilt to create a safer facade,
0:26:46 > 0:26:49yet it did give Carl some restless nights.
0:26:49 > 0:26:54There's no front elevation, we've taken all the walls down upstairs,
0:26:54 > 0:26:59we've got all the acro props holding the house together so, in a way, it's relief in a morning
0:26:59 > 0:27:03to come and see the house was still standing in that state!
0:27:03 > 0:27:08When they were rejigging the bathroom, there was a pleasant surprise waiting for them.
0:27:08 > 0:27:11Well, the interesting side of it, somebody said to me,
0:27:11 > 0:27:15"Do you not realise the kitchen is considerably longer than the bathroom?"
0:27:15 > 0:27:21And when we realised there was a false wall in the bathroom, we were careful and took the wall out and,
0:27:21 > 0:27:28obviously, it gave us nearly an extra three foot on this bedroom, so it's quite a good added bonus.
0:27:28 > 0:27:33I'm quite pleased with the way it's come out because this has made a good-sized bedroom again.
0:27:33 > 0:27:36And the renovation didn't just end there.
0:27:36 > 0:27:39They tidied up that backyard,
0:27:39 > 0:27:42completed the rendering
0:27:42 > 0:27:45and finished it off with a light-coloured coat of paint.
0:27:45 > 0:27:50With that busy road outside, it's now the perfect place to park a car.
0:27:50 > 0:27:54Carl and Jason have definitely done an impressive overhaul of this house,
0:27:54 > 0:27:57but surely they overran their schedule?
0:27:57 > 0:28:01We turned the house over within 12 and 14 weeks, and we've kept within that,
0:28:01 > 0:28:07so I think we've done really well, considering we've not worked any weekends or late nights.
0:28:07 > 0:28:11Organisation has made sure we can get the job finished on time.
0:28:11 > 0:28:16And not only was the turnaround impressive, the whole renovation came to 23-and-a-half grand,
0:28:16 > 0:28:20just £3,500 over their original estimate.
0:28:20 > 0:28:25I reckon that's still pretty good going for so much reconstructive surgery.
0:28:25 > 0:28:27So what's the next move?
0:28:27 > 0:28:30I don't think we'll go into the letting side because, obviously,
0:28:30 > 0:28:35we've done a lot of work to it and it would be a bit demoralising if we come back in 12 months
0:28:35 > 0:28:38and the place needs even more work doing to it.
0:28:38 > 0:28:43So, yeah, I'm either going to move into it or sell the house on.
0:28:43 > 0:28:47It sounds as if Jason's still undecided, but what is clear is
0:28:47 > 0:28:53that working with his father, Carl, on this renovation has helped him with a steep learning curve.
0:28:53 > 0:28:57Time now to see if all their hard work gets the reception it deserves.
0:28:59 > 0:29:05So Carl and Jason spent £23,500 on the renovation. If you add that
0:29:05 > 0:29:08to their purchase price at 42 grand,
0:29:08 > 0:29:12their total spend is £65,500.
0:29:12 > 0:29:19We invited along two local estate agents to see what they thought of this father-son's joint effort.
0:29:19 > 0:29:20Well, first of all,
0:29:20 > 0:29:23I think my initial impression of the property
0:29:23 > 0:29:25is that the refurbishment has been done very cleverly,
0:29:25 > 0:29:29which is important when aiming for a particular target market.
0:29:29 > 0:29:34First impression as I walked in was obviously the property is a very good size, a bit a like a Tardis.
0:29:34 > 0:29:40You don't expect it to be as big inside, and the fixtures and fittings were better than I expected
0:29:40 > 0:29:43compared to some of the properties in this area.
0:29:43 > 0:29:46So, as a developer, he has done a good job on it.
0:29:46 > 0:29:49The finish is very good. It's important to get it right first time.
0:29:49 > 0:29:53Too many developers scrimp to save a bit of money and it's a false economy.
0:29:53 > 0:29:57But it's not just inside that the agents reckon the value lies.
0:29:57 > 0:30:00With such a busy road out front, that rear parking space
0:30:00 > 0:30:05is a real selling point, so who would this sort of property appeal to?
0:30:05 > 0:30:09With the fourth bedroom, it does stand out, so I think it would be very easy to market
0:30:09 > 0:30:14and I'm sure first-time buyers would go to view this rather than the ordinary three-bed.
0:30:14 > 0:30:18I think really, for this type of area, it is a good first-time buyer location
0:30:18 > 0:30:22and also a family location, so it would suit both parties, really.
0:30:22 > 0:30:30Carl and Jason spent 65-and-a-half grand here, so what could they get if they sold it?
0:30:30 > 0:30:37I would say in the present climate £84,950 would be very realistic and we'd be quite confident at that.
0:30:37 > 0:30:40I would put this on the market for £85,000.
0:30:40 > 0:30:44- That's pretty good, isn't it? - Yeah.- Happy with that. - Quite pleased with that.
0:30:44 > 0:30:48For the first property we've done, that should be quite a good profit.
0:30:48 > 0:30:50Minus the usual expenses,
0:30:50 > 0:30:55that would give them around a 19 grand pre-tax profit on their first renovation together.
0:30:55 > 0:30:59Would they be tempted by the possible rental return?
0:30:59 > 0:31:05I would say now with the fourth bedroom, you're looking at £450 to £475 per calendar month.
0:31:05 > 0:31:09I would be able to rent this out for £425 per calendar month.
0:31:09 > 0:31:16That would mean a very attractive 8% yield, so are they tempted?
0:31:16 > 0:31:21I'm quite happy with the guide on the rental, but I do think we'll probably...we'll sell.
0:31:27 > 0:31:34As they aim to sell the house, the next step will be to reinvest the profit into a new property.
0:31:34 > 0:31:39This time, though, with Carl's help and guidance, Jason intends to do the work himself.
0:31:39 > 0:31:45Although he's confident of facing the challenges ahead, he still knows where to turn if he needs help.
0:31:45 > 0:31:50I think it's basically down to I know my dad knows what he's talking about most of the time,
0:31:50 > 0:31:56so it's just up to me to listen and learn, pick things up along the way and hopefully show him what I can do.
0:31:56 > 0:32:01I'd probably just about agree with that, and that's the first time on this job!
0:32:03 > 0:32:10I'm in Buckfastleigh, a pretty little Devon town between Plymouth and Exeter on the edge of Dartmoor.
0:32:10 > 0:32:15It used to be a mill town, but nowadays it's probably more famous for Buckfast,
0:32:15 > 0:32:18a fortified wine brewed in the local abbey.
0:32:18 > 0:32:22Well, with the property up for auction being a two-bedroom terrace
0:32:22 > 0:32:29with a guide price of £85,000, is it going to get the people at auction intoxicated?
0:32:29 > 0:32:34# Drink, drink, drink to eyes that are bright as stars when they're shining on me... #
0:32:34 > 0:32:37On a sunnier day, this town is popular with tourists.
0:32:37 > 0:32:44It's easy to see why, but will this auction lot leave me raising a toast or will it be bottom of the barrel?
0:32:44 > 0:32:50Well, in a place like this, you'd hope to unearth some period cottage or rustic farmhouse.
0:32:50 > 0:32:55Well, the property I'm here to see is period, but the period is 1970s.
0:32:55 > 0:32:58It's an end terrace. Let's take a look.
0:32:58 > 0:33:02Well, it's not a vintage year, but this type of property can be
0:33:02 > 0:33:07deceptively spacious and, with those big windows, it's certainly light.
0:33:07 > 0:33:09Okey-cokey, so what have we got?
0:33:09 > 0:33:12Entrance hall leading up to the main part of the house,
0:33:12 > 0:33:16but straight into this which, from the outside, this is where the garage should be,
0:33:16 > 0:33:21but there's this great big wall here which means it's not very useful as a garage.
0:33:21 > 0:33:24Now, one of the things about this area is parking is a bit of an issue,
0:33:24 > 0:33:31so I'd have thought this would be really useful, but maybe the person who owned it didn't have a car.
0:33:31 > 0:33:35They've put these panels on the wall. They look like soundproofing panels
0:33:35 > 0:33:38and actually it would make a brilliant studio or maybe an office.
0:33:38 > 0:33:42Subject to the right planning regulations and building restrictions,
0:33:42 > 0:33:45you could have this permanently as whatever you wanted,
0:33:45 > 0:33:48but I'd have thought a garage was a good thing.
0:33:48 > 0:33:51Let's have a look at the rest of the house.
0:33:51 > 0:33:59The house is tall and thin with stairs leading up to the main living area on the first floor.
0:33:59 > 0:34:04So upstairs on to the first floor and straight away I'm seeing some big changes I'd make.
0:34:04 > 0:34:09I'll come back to those in a second. First, the kitchen here, obviously it's tired, it's dated,
0:34:09 > 0:34:12you want to replace the units, but look at the view out of the window.
0:34:12 > 0:34:16How depressing is that? You're staring at, basically, a wall!
0:34:16 > 0:34:20I mean, paint a mural on it, put some pictures up,
0:34:20 > 0:34:24anything, because that would actually drive me bananas.
0:34:24 > 0:34:28In terms of structure, here's something you'd definitely consider.
0:34:28 > 0:34:31This thing here, what is it? I mean, it's 1970s uselessness.
0:34:31 > 0:34:33I mean, it's... It's silly stuff.
0:34:33 > 0:34:38Get rid of it - because, if you did that, you would end up with a really nice space,
0:34:38 > 0:34:41a kitchen/living area, kids' play area, whatever you want.
0:34:41 > 0:34:47Much more family friendly...and, you know, what is this all about?
0:34:48 > 0:34:52Opening up this space does seem a more practical option.
0:34:52 > 0:34:58After all, the only person this would really appeal to is a short-order chef.
0:35:00 > 0:35:05So up on to the top floor, and one thing that's interesting is that you've got three floors here.
0:35:05 > 0:35:08The house is bigger than the footprint would indicate.
0:35:08 > 0:35:11That's nice. However, a slight disappointment -
0:35:11 > 0:35:15the bedroom here, one of your only two bedrooms at the back, very small.
0:35:15 > 0:35:18You have got the bathroom and loo here on this floor which is good,
0:35:18 > 0:35:21and this front bedroom is a better-sized double.
0:35:21 > 0:35:28It does benefit also from big windows. That's nice, but the view out of them isn't brilliant.
0:35:28 > 0:35:33So, all and all, it's not bad, but it's not really going to rock your boat.
0:35:33 > 0:35:38I think the house is perfect for a couple, especially if they're starting a family.
0:35:38 > 0:35:41That smaller double would be an ideal child's room.
0:35:41 > 0:35:45But if you thought the house was dinky, wait till you see the garden.
0:35:45 > 0:35:50Now, the catalogue says there's some outdoor courtyard space.
0:35:50 > 0:35:52You have got to be kidding!
0:35:52 > 0:35:59# Oh, give me land, lots of land Under starry skies above
0:35:59 > 0:36:01# Don't fence me in... #
0:36:01 > 0:36:07Well, there is a bit of poetic licence here as the yard is a good four square metres.
0:36:07 > 0:36:11Overall, though, the house is in reasonable condition, it just needs to be freshened up.
0:36:11 > 0:36:16If you replace the kitchen and the bathroom, and redecorate,
0:36:16 > 0:36:20for that 85 grand you'd have a foothold in this lovely area.
0:36:20 > 0:36:24But, as pretty as the village is, I asked along a local estate agent
0:36:24 > 0:36:27to find out what he thought of the potential
0:36:27 > 0:36:30of this two-bedroomed end of terrace.
0:36:35 > 0:36:38It's a popular area. We get a lot of demand for Buckfastleigh.
0:36:38 > 0:36:41A lot of people live in the town, they commute
0:36:41 > 0:36:43to either Exeter or Plymouth with work.
0:36:43 > 0:36:47There's also quite a lot of retired people around here as well
0:36:47 > 0:36:49who like to take advantage of Dartmoor National Park.
0:36:49 > 0:36:55So the location is a key selling point here, but what about the house itself?
0:36:55 > 0:37:01It's not the most attractive of properties, but what it has to offer is that it's an affordable property
0:37:01 > 0:37:04in a good location with scope to improve.
0:37:04 > 0:37:09If somebody was to spend money on it and invest and refurbish it,
0:37:09 > 0:37:13I think it could achieve somewhere in the region of £135,000 to £140,000.
0:37:13 > 0:37:16There seems to be scope for profit here,
0:37:16 > 0:37:21but in today's uncertain market what would the rental return be?
0:37:21 > 0:37:28I think once renovated this property could achieve somewhere in the region of £525 to £550 per calendar month.
0:37:32 > 0:37:36Well, it may not be all stone, ivy and cutesy-wutesiness,
0:37:36 > 0:37:40but the house is a decent size and in a good location,
0:37:40 > 0:37:45and its proximity to both Plymouth and Exeter means that it would be easy to rent it out.
0:37:45 > 0:37:48Plus, you can add value by doing some much-needed improvements.
0:37:48 > 0:37:51Let's see who fancied it at the auction.
0:37:54 > 0:37:58Lot 45 is 11 Bridge Street, Buckfastleigh.
0:37:58 > 0:38:01Who will say to us 95?
0:38:01 > 0:38:0490? We're away. 90, that's the way.
0:38:04 > 0:38:07At 90. I've got at 90. Thank you. At 90. At 90. 92.
0:38:07 > 0:38:0992. Looking for four.
0:38:09 > 0:38:1293 if it will help you. 93.
0:38:12 > 0:38:14At 93. At 93.
0:38:14 > 0:38:1994. 95. 95. 95. At 95.
0:38:19 > 0:38:2196. 97?
0:38:21 > 0:38:2397. At 97.
0:38:23 > 0:38:2798. At 98. You could ring the bell, because that might be his limit.
0:38:27 > 0:38:30Hit the bell. 100. At 100.
0:38:30 > 0:38:32At 100. At 100.
0:38:32 > 0:38:35At 100. Looking around the room once. At 100 twice.
0:38:35 > 0:38:37At 100 are you sure and done?
0:38:37 > 0:38:41It's the... A half? 100 and a half.
0:38:41 > 0:38:42100 and a half. At 100 and half.
0:38:42 > 0:38:44At 100 and a half.
0:38:44 > 0:38:47At 100 and a half once. This gentleman here.
0:38:47 > 0:38:50At 100 and a half once and twice.
0:38:50 > 0:38:57At 100 and a half are you sure and done? Last chance, then. It will be sold at 100 and £500. Sir, yours.
0:38:59 > 0:39:02Those winning bidders were Jerry and Lesley.
0:39:02 > 0:39:06Former police sergeant Jerry and PC Lesley have been together for
0:39:06 > 0:39:10three years and have always fancied taking on a project.
0:39:10 > 0:39:13I met up with them back at the house.
0:39:13 > 0:39:16- Jerry, Lesley, lovely to meet you. - Hi.- Congratulations.- Thank you.
0:39:16 > 0:39:19Tell me why you wanted to buy this space.
0:39:19 > 0:39:24Well, we'd had some money available to us whereby we wanted to invest in property.
0:39:24 > 0:39:29There's nothing being made in investments, and bricks and mortar is always the best way to go.
0:39:29 > 0:39:31What did you like about it, Lesley?
0:39:31 > 0:39:34There's not too much work to do and you can see through the colours
0:39:34 > 0:39:37and it's local, it was the right price,
0:39:37 > 0:39:40it's manageable and it just seemed like the right property for us.
0:39:40 > 0:39:44- Is this something you've done before?- No, this is our first venture.
0:39:44 > 0:39:48We've talked about it for a long time, but it was just a case of
0:39:48 > 0:39:50finding the right place, right price,
0:39:50 > 0:39:55and something which didn't have too much work. Because it's our first venture, we didn't want to
0:39:55 > 0:40:00get in too deep whereby we ended up with lots of problems, so this is what we ended up with.
0:40:00 > 0:40:04Jerry's a keen DIYer and this property seems to fit the bill
0:40:04 > 0:40:06perfectly for testing out his skills.
0:40:06 > 0:40:09So, with their police force background,
0:40:09 > 0:40:13did Jerry and Lesley ever DETECT that this could be the scene of a crime?
0:40:16 > 0:40:17Where was your patch when you were a policeman?
0:40:17 > 0:40:19- Locally.- Oh, really?- Yeah, yeah.
0:40:19 > 0:40:22- Literally this street?- Yes, I was...
0:40:22 > 0:40:29I ended up as a sergeant and one of my later sort of outward posts was Ashburton and Buckfastleigh,
0:40:29 > 0:40:33so I was the sergeant for this area, so it's coming back home to roost!
0:40:33 > 0:40:38Maybe when Jerry was on the beat, he may have been subconsciously eyeing up this place.
0:40:38 > 0:40:42But of course they couldn't find a property on "Letsby Avenue",
0:40:42 > 0:40:47so it's more a case of let's be getting this place sorted! What are their plans?
0:40:47 > 0:40:53I'd get rid of the burger hatch, and fill that in actually and make it two separate rooms.
0:40:53 > 0:40:55- Oh, really?- Yes. - Not knock it into one?
0:40:55 > 0:40:58No, it's...it's something that we thought about,
0:40:58 > 0:41:01but I think we'll try it as two separate rooms and see what happens.
0:41:01 > 0:41:04I thought about knocking it into one, but what do I know?
0:41:04 > 0:41:10- Well, you know far more than we do, so I may take that advice. - Well, you know,
0:41:10 > 0:41:12it would make a nice open-plan space, but there are
0:41:12 > 0:41:16people who like separate kitchens and living rooms, so you balance it up, don't blame me!
0:41:16 > 0:41:20The view out of the kitchen window, what are you going to do about that
0:41:20 > 0:41:23because it's a brick wall at the moment, or it's a wall.
0:41:23 > 0:41:25Yes, very close to the window, as well.
0:41:25 > 0:41:31- Maybe a nice mural on the wall or something?- Something would be good. - Yes.- Yes, mural would be good.
0:41:31 > 0:41:36- We hadn't thought about that, had we?- No, we hadn't, actually.- A picture of...
0:41:36 > 0:41:38- Any ideas? - ..the Canadian Rockies or anything.
0:41:38 > 0:41:41- Yes.- You can get outdoor pictures that you put there
0:41:41 > 0:41:46and it looks like, you know, the forest scene or, you know, beaches or whatever.
0:41:46 > 0:41:49- Anything would be better than that wall.- Yeah.- We could paint it white.
0:41:49 > 0:41:54- Argh! What do you mean paint it white?- Then it would glare back in your face.
0:41:54 > 0:41:58This dinky courtyard may have a case of arrested development,
0:41:58 > 0:42:03but it looks like Jerry's former long arm of the law might be needed to reach the top of this wall.
0:42:03 > 0:42:09But, fortunately, there are more practical options inside the house.
0:42:09 > 0:42:15On the ground floor, they will turn this back in to a garage and up top install a new bathroom suite.
0:42:15 > 0:42:16So who's going to do the work?
0:42:16 > 0:42:19- Are you going to...- Essentially I...
0:42:19 > 0:42:21I'll probably do the large proportion myself.
0:42:21 > 0:42:26Lesley's good at smashing things up, so once I've disconnected the water, I can ask Lesley
0:42:26 > 0:42:30to remove the kitchen, remove the bathroom, but unless I disconnect first,
0:42:30 > 0:42:35it'll be a sledgehammer and then a phone call, "Jerry, I've got a leak," so I will be doing that first!
0:42:35 > 0:42:41They've given themselves a £10,000 budget and a 12-week turnaround to do the renovation.
0:42:41 > 0:42:45Jerry and Lesley aren't interested in building a portfolio,
0:42:45 > 0:42:48so they plan to sell and move on to the next property.
0:42:50 > 0:42:53If it goes well, I think we'll just carry on with it, won't we, really?
0:42:53 > 0:42:57It's another direction to go in in that it's something we both wanted to do
0:42:57 > 0:43:02so, yeah, if it works, brilliant. If it doesn't, then it's an experience.
0:43:02 > 0:43:05- Sure.- So that's how you can look at it.- Definitely.
0:43:05 > 0:43:10- Yeah.- Well, good luck with it all. - Thank you.- I hope it's a great success for you.
0:43:10 > 0:43:12- Thank you.- It will be. - Lovely to meet you.
0:43:17 > 0:43:21Well, I'm sure Jerry and Lesley will have great fun doing this project.
0:43:21 > 0:43:26Not sure about leaving the wall between the kitchen and the lounge but, most important, will we
0:43:26 > 0:43:31come back and find there's a nice mural outside the kitchen window?
0:43:31 > 0:43:33You can find out later in the show.
0:43:36 > 0:43:40Well, we're dying to see what happened to our budding investors.
0:43:40 > 0:43:44Are they tearing their hair out or cool as cucumbers? Let's find out.
0:43:46 > 0:43:49Back in the seaside town of Sheerness, Kent,
0:43:49 > 0:43:56this small two-bedroom house sold at auction for 76,000, 21,000 over the top guide price.
0:43:56 > 0:43:59Richard and Nick bought it.
0:43:59 > 0:44:02They're based in London where they run a collectables business.
0:44:02 > 0:44:06They decided to broaden their base by collecting properties.
0:44:06 > 0:44:10They got off to a good start because, despite being on the dinky side,
0:44:10 > 0:44:16there wasn't a lot wrong with this place that a little care and attention couldn't fix.
0:44:16 > 0:44:19So two months later we went back to see how they'd got on.
0:44:19 > 0:44:24First of all, we had to get the damp sorted out and any building structural work done,
0:44:24 > 0:44:27and once that was done it was all decorating mainly.
0:44:27 > 0:44:30One reason we chose the house is that it was in fairly good condition,
0:44:30 > 0:44:33so we didn't see the need to change anything.
0:44:33 > 0:44:36All the house did need was a little attention,
0:44:36 > 0:44:41so the front room has had a fresh lick of paint and new carpets.
0:44:41 > 0:44:45And in the kitchen the good condition of the units meant they just changed
0:44:45 > 0:44:50the lino, installed a new worktop and replaced the sink.
0:44:53 > 0:44:55And it's the same story in the bathroom.
0:44:55 > 0:45:01It was just a simple matter of redecoration and replacing the vinyl floor covering.
0:45:01 > 0:45:04And at the top of those steep stairs...
0:45:04 > 0:45:10So in this room we've replaced the pane here because it had got compensation.
0:45:10 > 0:45:14We've recarpeted, we've redecorated and we discovered that, behind the screen,
0:45:14 > 0:45:19there was actually an existing fireplace, so we've just painted that up,
0:45:19 > 0:45:23smartened it up a little bit and we think that's quite a nice feature.
0:45:23 > 0:45:28These original iron fireplaces are always a great attraction whether you sell or rent out.
0:45:28 > 0:45:35In fact, the overall decor is exactly the sort of neutral canvas that appeals to any market.
0:45:35 > 0:45:39I think we quite like these neutral colours, and we're quite pleased
0:45:39 > 0:45:42with the carpets and I think we've freshened the place up.
0:45:42 > 0:45:45It wasn't too bad to start with, but I think we're pleased
0:45:45 > 0:45:48that we've freshened it up and I think we've improved it somewhat.
0:45:48 > 0:45:52All the damp has been treated throughout the house
0:45:52 > 0:45:55and the five faulty double-glazed windows have now been replaced.
0:45:55 > 0:45:59The exterior has been cleaned, repainted and the guttering tidied.
0:45:59 > 0:46:06That left one remaining problem - the single-skin extension at the rear.
0:46:06 > 0:46:12We spoke to quite a few people, the bank and builders and they were all of the thought
0:46:12 > 0:46:17that it wasn't anything particularly to worry about, and especially in Sheerness,
0:46:17 > 0:46:20a lot of the properties have these single-skin extensions.
0:46:20 > 0:46:23If and when we come to sell this place we might think about
0:46:23 > 0:46:28taking the extension down and incorporating an extra room somehow, but that will be a long-term thing,
0:46:28 > 0:46:31but in the short term we've just left it all as it was.
0:46:31 > 0:46:36They got rid of the old toilet and, after a good tidy-up plus a fresh lick of paint,
0:46:36 > 0:46:41this garden now looks like a place to relax and enjoy that afternoon sun.
0:46:41 > 0:46:43And if you're a bit peckish...
0:46:44 > 0:46:47In the backyard, we found something that we hadn't expected.
0:46:47 > 0:46:53We hadn't seen it when we viewed the property, there's actually a grape vine and it's coming into fruit now,
0:46:53 > 0:46:56quite a lot of fruit, and I hope the tenants will enjoy it!
0:46:56 > 0:47:02Well, it looks as though the garden is bearing fruit, but will Nick and Richard's labours yield a profit?
0:47:02 > 0:47:08This minor renovation cost only £3,000 of their original five grand budget.
0:47:08 > 0:47:15On top of their 76,000 purchase price, that would take their total spend to 79 grand.
0:47:15 > 0:47:21It's a good start, but will it be enough to make their new collecting business a worthwhile venture?
0:47:26 > 0:47:30I asked two local estate agents if this two-bed house in Sheerness
0:47:30 > 0:47:35has what it takes to attract the interest of potential renters.
0:47:36 > 0:47:39It's a very nice property.
0:47:39 > 0:47:42It's been done very well
0:47:42 > 0:47:47and I think it's ideal for this area the way they've completed it.
0:47:47 > 0:47:52I think, yeah, they've made a vast improvement on the property as it is at the moment.
0:47:52 > 0:47:56Obviously, they haven't done anything structurally to change it,
0:47:56 > 0:47:59but they've modernised it, brightened it up.
0:47:59 > 0:48:01It makes it a much more viable option for a buyer.
0:48:01 > 0:48:07With the current state of the property market uncertain, both estate agents think letting the house
0:48:07 > 0:48:14is the best option so, as that fits in with Richard and Nick's plans, what could they achieve in rental?
0:48:14 > 0:48:19I think you could rent this property out for between £500 and £550 per calendar month.
0:48:19 > 0:48:25I think the rental value would be between 575 and 600 per calendar month.
0:48:25 > 0:48:27I think that sounds about spot on to me.
0:48:27 > 0:48:30Yeah, we're happy with the higher end of that range,
0:48:30 > 0:48:32but that's the sort of figure we had in mind.
0:48:32 > 0:48:36If they can get that 600 per calendar month,
0:48:36 > 0:48:42that would give them a whopping 9% return on their £79,000 investment.
0:48:42 > 0:48:46But how much could they get if they decided to sell?
0:48:46 > 0:48:47As I see the property today,
0:48:47 > 0:48:52I would probably be looking at an asking price of around 90,000 for the property.
0:48:52 > 0:48:56I think the sale value for this property would be around £90,000.
0:48:56 > 0:49:01- Wow!- 90,000? We're pleased with that. That's more than we've spent on the property
0:49:01 > 0:49:02and more than I was expecting.
0:49:02 > 0:49:08That sale figure of 90,000 would give Richard and Nick's first project
0:49:08 > 0:49:12a healthy introductory pre-tax profit of 11,000.
0:49:12 > 0:49:14It's a great start for their property portfolio
0:49:14 > 0:49:21and for these development novices an easy renovation that will have them off to another auction soon.
0:49:21 > 0:49:25Yeah, we've both enjoyed it, we've both learned a lot and I think we'd be happy to do it again.
0:49:28 > 0:49:32Earlier, I was in the pretty Devon village of Buckfastleigh
0:49:32 > 0:49:40where Jerry and Lesley bought this not-quite-so-pretty two-bed end of terrace for £100,500.
0:49:40 > 0:49:44Its '70s exterior was matched by its dated, tired interior
0:49:44 > 0:49:49and between the living room and kitchen was a serving window that had served its time.
0:49:49 > 0:49:55I'd get rid of the burger hatch and fill that in, actually, and make it two separate rooms.
0:49:55 > 0:50:00- Oh, really?- Yes.- I thought about knocking it all into one, but, you know, hey, what do I know?
0:50:00 > 0:50:04- Well, you know far more than we know, so I may take that advice! - Well, you know!
0:50:04 > 0:50:10Well, did they listen to their instincts or go for my favoured open-plan model?
0:50:10 > 0:50:16Six months later, it was time to see what Jerry and Lesley finally decided on.
0:50:16 > 0:50:22First of all, we can see a new front door has been installed and that garage door painted.
0:50:22 > 0:50:27And it will actually serve its purpose now with the garage space reinstated.
0:50:32 > 0:50:35On the middle floor, they've gone for...
0:50:36 > 0:50:38..their instincts, and it seems to work.
0:50:43 > 0:50:47In the kitchen, the tired yellow walls and chequerboard tiles
0:50:47 > 0:50:51have given way to a more stylish and contemporary look.
0:50:53 > 0:50:56Right, with the kitchen, when we first had the property
0:50:56 > 0:51:00we had a worktop here, a worktop across there with a gas cooker.
0:51:00 > 0:51:03It was all in a horrible yellow colour, and there was a serving hatch
0:51:03 > 0:51:08in that wall into the lounge which has now been blocked in to make it two separate rooms.
0:51:08 > 0:51:13There wasn't an awful lot we could do out the back, so therefore we just has to paint the back wall,
0:51:13 > 0:51:16but what I wanted to do is make the most of the size of the kitchen.
0:51:16 > 0:51:19It was slightly too small to put a table in,
0:51:19 > 0:51:24but at least I've created enough workspace for anybody with a modern family.
0:51:24 > 0:51:30There's space here for a dishwasher or a washing machine, space over in that corner for a low level fridge
0:51:30 > 0:51:33and also in the kickboards underneath I've got ice blue lights
0:51:33 > 0:51:36which make a nice feature in the evening, it's quite low lighting.
0:51:36 > 0:51:39And also another added touch we did
0:51:39 > 0:51:45is on the actual tap - it's a rinse thing for your saucepans and bits and pieces.
0:51:45 > 0:51:50Just extra little touches, really, which, you know, I think has made the most of the kitchen that we had.
0:51:50 > 0:51:53It's a good solid transformation.
0:51:53 > 0:51:56While the blank wall outside is uninspiring,
0:51:56 > 0:52:01having neutral decor inside is exactly right for selling the property.
0:52:01 > 0:52:07Jerry has carried that look on upstairs, where the bedrooms have all been done in the same style.
0:52:07 > 0:52:11That just leaves what was a dated bathroom.
0:52:14 > 0:52:17Right, here we've got the bathroom all finished, which is very nice.
0:52:17 > 0:52:21Originally this was in avocado and the toilet pan was there, the basin
0:52:21 > 0:52:26was there and then the bath was up in that corner, all on one side of the bathroom, and what I wanted to do was
0:52:26 > 0:52:30spread it out a bit to reduce the length and widen it, so we've now got
0:52:30 > 0:52:36a white suite with the bath, toilet pan and basin under the window.
0:52:36 > 0:52:41I changed the radiator for a heated towel rail, all tiled up to the mid height.
0:52:41 > 0:52:44I put up fire-rated down lighters.
0:52:44 > 0:52:50I decided to put in an electric shower within the bath area and, to try and keep the space and the light,
0:52:50 > 0:52:56instead of a shower curtain I put on a hinged glass screen and I'm really pleased with the end result.
0:52:56 > 0:53:00It's a nice modern bathroom and hopefully it will appeal to all markets.
0:53:00 > 0:53:05With Jerry and Lesley aiming for the resale market, I reckon the interior of this product hits the bull's eye.
0:53:05 > 0:53:12It's that small yard out the back that could narrow the target for them and prove a bit of a problem,
0:53:12 > 0:53:20but overall it's an impressive result and for DIY enthusiast Jerry a renovation that proved pain-free.
0:53:20 > 0:53:24The project went very well. I... I did most of the work myself.
0:53:24 > 0:53:30Lesley helped me when she was able to and I did give her the task of removing the awful woodchip wallpaper
0:53:30 > 0:53:35whilst I was doing something else, but all in all things worked very well.
0:53:35 > 0:53:39Jerry and Lesley originally had a 12-week timescale.
0:53:39 > 0:53:44In fact, with some family help with the plumbing, carpentry and replastering the ceiling,
0:53:44 > 0:53:48the whole job took just 14 weeks.
0:53:48 > 0:53:53The drawback was that it was spread over six months due to other business commitments!
0:53:53 > 0:53:55Did that affect their finances?
0:53:55 > 0:54:01The budget originally was about 10,000. We've gone slightly over.
0:54:01 > 0:54:08Not including fees, we've gone to about 12,800, so I'm still quite pleased with it.
0:54:08 > 0:54:11Add that to purchase price of 100,500
0:54:11 > 0:54:15and that would take their spend to just over 113 grand minus fees.
0:54:15 > 0:54:18For them, it started as a business venture,
0:54:18 > 0:54:23but something tells me that they've got quite attached to this place.
0:54:25 > 0:54:28We both love it. Yeah, Lesley and I both love the property.
0:54:28 > 0:54:30It's only just come together.
0:54:30 > 0:54:36In fact, in the last 24 hours with the carpets going down as a last rush and all of a sudden we can see
0:54:36 > 0:54:40the sort of end of our efforts and it really is a superb property.
0:54:41 > 0:54:47But as Jerry and Lesley aim to sell on the house, time to see if the market agrees.
0:54:51 > 0:54:53We asked two local estate agents
0:54:53 > 0:54:56to give us their thoughts on the renovation.
0:54:56 > 0:55:00I think there's been some great improvements done to the house.
0:55:00 > 0:55:03It presents and looks very good. A good idea to change the kitchen
0:55:03 > 0:55:06and make it separate. It looks very well,
0:55:06 > 0:55:08it's been refurbished extremely well,
0:55:08 > 0:55:09a good choice of units.
0:55:09 > 0:55:12I think it's been immaculately presented.
0:55:12 > 0:55:14I think they've done a very good job.
0:55:14 > 0:55:16I think this property would sell very well.
0:55:16 > 0:55:20Somebody can come in here and just bring their own bits and pieces,
0:55:20 > 0:55:22move straight in. Absolutely.
0:55:22 > 0:55:25So thumbs up from the agents, but what could the house achieve for a resale?
0:55:25 > 0:55:31Remember, they spent 113 grand on the house, so was it money well spent?
0:55:33 > 0:55:39I would put the house on the market in its current condition in the current market at around £135,000.
0:55:39 > 0:55:46We would look to put this property on the open market at between £130,000 and £135,000.
0:55:46 > 0:55:48Lower than what I expected, to be honest.
0:55:48 > 0:55:53It's been valued by two other agents at a higher price and from my point of view
0:55:53 > 0:55:59I obviously want to realise as much as I can, so I will keep with my original valuations.
0:55:59 > 0:56:03Jerry aims to sell for just under 145 grand.
0:56:03 > 0:56:08If he gets that, it will make the couple a possible pre-tax profit of 31 grand.
0:56:08 > 0:56:11Impressive! What about rental return?
0:56:11 > 0:56:17If the property was to go to rent I would expect somewhere in the region of £550 to £600 per calendar month.
0:56:17 > 0:56:20We would look to achieve £650 per calendar month.
0:56:20 > 0:56:22That's quite surprising.
0:56:22 > 0:56:27I didn't expect the rental for 650 would be quite that high, but if I did have to rent it,
0:56:27 > 0:56:29that would be a very good figure that I would rent for.
0:56:29 > 0:56:34That would give Jerry and Lesley a yield of just under 7%.
0:56:34 > 0:56:40It won't stop them from selling, but has definitely given them food for thought about their next move.
0:56:40 > 0:56:43Well, this one appears to have been a very good success.
0:56:43 > 0:56:46Hopefully we can sell it, so I would certainly look for
0:56:46 > 0:56:50something else at the right price and go off and do exactly the same again.
0:56:52 > 0:56:56Join us next time for more pleasures and pitfalls from the world of property developing.
0:56:56 > 0:56:58- We'll see you then.- Goodbye.- Goodbye.
0:57:18 > 0:57:20Subtitles by Red Bee Media Ltd
0:57:20 > 0:57:22E-mail subtitling@bbc.co.uk