0:00:00 > 0:00:04Obviously, these are challenging times in the property market
0:00:04 > 0:00:07but there are still bargains to be had if you know what you're doing.
0:00:07 > 0:00:13We're here with tips on how you can find them, and how you can make the current climate work in your favour.
0:00:13 > 0:00:17Join us now to follow three plucky auction purchasers.
0:00:43 > 0:00:49- Before buying at auction, we always advise you to do your homework. - Absolutely.
0:00:49 > 0:00:55It's vital to check out the property, the area, and how much it'll be worth once renovated.
0:00:55 > 0:00:57Let's see if today's buyers got top marks.
0:00:59 > 0:01:04This two-bedroomed house in Derbyshire has left me a little in the dark.
0:01:04 > 0:01:08It needs light and I don't really know how you're going to get that.
0:01:08 > 0:01:12Last time we visited this old stable in Kent, it wasn't only
0:01:12 > 0:01:15the horses that had bolted, but the building had too!
0:01:15 > 0:01:18We'll return to see its amazing transformation.
0:01:18 > 0:01:22In Wiltshire, I look at this shop and the flat above.
0:01:22 > 0:01:24If only I could find a way in...
0:01:24 > 0:01:27The thing I haven't found yet...
0:01:27 > 0:01:29is the entrance to the flat.
0:01:30 > 0:01:32All these properties have been sold at auction.
0:01:32 > 0:01:37We found out who bought them and for how much when they went under the hammer.
0:01:41 > 0:01:44I'm in Heanor in Derbyshire.
0:01:44 > 0:01:50Just recently, the property I'm here to see was on the open market for £76,000.
0:01:50 > 0:01:53Not bad for a two-bedroomed mid-terrace.
0:01:53 > 0:02:00However, at auction, the guide price was 49,000. That's more like it!
0:02:00 > 0:02:04That's a fantastic price for such a neat little terraced house.
0:02:04 > 0:02:10Inside, I discovered that the old red-brick may not be the only thing holding this house up.
0:02:14 > 0:02:17OK, not quite what you expect, a beamed ceiling.
0:02:17 > 0:02:22It wouldn't be so bad if it had lighter colours, but this dark wood
0:02:22 > 0:02:25is very oppressive in what's quite a small room.
0:02:25 > 0:02:27It gives it character, I suppose.
0:02:27 > 0:02:29The fireplace again, that doesn't really fit in.
0:02:29 > 0:02:33Make something of that. All in all, it's not a bad-sized little space.
0:02:33 > 0:02:37I also like the fact you've got this opening through to the kitchen,
0:02:37 > 0:02:42which is just as well because otherwise this is a very dark, dingy little spot.
0:02:42 > 0:02:45It's not a bad-sized kitchen, like the lounge isn't bad.
0:02:45 > 0:02:52It could do with a new work surface, a new front to these units, rather than throwing out the whole lot.
0:02:52 > 0:02:56More importantly, it needs light. I don't know how you'll get that,
0:02:56 > 0:02:59because on the other side of that wall, you've got your loo.
0:02:59 > 0:03:03This cosy little toilet is already fitted with a shower and bath.
0:03:03 > 0:03:06If you wanted to rent this property out, you wouldn't have to do much in here.
0:03:06 > 0:03:09Well, maybe you could get rid of those frogs!
0:03:14 > 0:03:18I hopped upstairs and found two good-sized bedrooms.
0:03:18 > 0:03:20One needs a carpet, and a lick of paint.
0:03:20 > 0:03:25But the other is newly decorated and thankfully, frog free.
0:03:25 > 0:03:30The big question in a house like this is, do you move the bathroom from downstairs to upstairs?
0:03:30 > 0:03:36My answer is, how much difference will it make in terms of the rent or the value of the property?
0:03:36 > 0:03:37If the figures stack up, then do it.
0:03:37 > 0:03:40But really, I don't think it's worth the bother.
0:03:40 > 0:03:43It's perfectly fine where it is.
0:03:43 > 0:03:49Even though it's a great bargain at its £49,000 guide price, you should be careful not to overspend here.
0:03:49 > 0:03:53Too much spent on decoration could see some of your profits shelved,
0:03:53 > 0:03:57or even worse, it'll be flushed away completely, resulting in a loss.
0:03:57 > 0:04:04Here's hoping whoever bought this has a healthy chunk set aside for landscaping.
0:04:04 > 0:04:11Out the back, one of the longest, thinnest gardens I've seen in a very long time.
0:04:11 > 0:04:14This garden could be ideal for barbecues in the summer.
0:04:14 > 0:04:19In fact, you could probably invite the whole street around.
0:04:22 > 0:04:25I asked a local estate agent to come and have a look at this
0:04:25 > 0:04:27unassuming little terraced house.
0:04:27 > 0:04:31It's a lovely house, nice little cottage property in a good location.
0:04:31 > 0:04:34Ideal for a first-time buyer or to rent, buy to rent out.
0:04:34 > 0:04:41I'd do a very simple renovation job on this property, redecorate, recarpet, just touch up where
0:04:41 > 0:04:44it's rough around the edges and improve those little bits.
0:04:46 > 0:04:49Once that work is done, how much could it sell for?
0:04:49 > 0:04:54When finished, I'd have thought this property would achieve around £70,000-75,000 on the open market.
0:04:54 > 0:04:58If it sold for its £49,000 guide price, that would mean a cracking
0:04:58 > 0:05:04£26,000 pre-tax profit, minus any renovation costs of course.
0:05:04 > 0:05:06What about its rental value?
0:05:06 > 0:05:10I'd expect the property to achieve in the region of £400 - £425 per calendar month.
0:05:10 > 0:05:16So, despite this property's dark interior, its prospects aren't gloomy at all.
0:05:16 > 0:05:20# It's dark as a dungeon
0:05:20 > 0:05:22# Way down in the mine... #
0:05:22 > 0:05:26Well, this is a good little property, isn't it?
0:05:26 > 0:05:30OK, the decor was a bit unusual but apart from that, good location,
0:05:30 > 0:05:36these rent out 10 a penny every day, or a nice place to live, a starter home. A great one to go for.
0:05:36 > 0:05:38Let's see who fancied it when it went under the hammer.
0:05:40 > 0:05:43Lot number nine is 26 Midland Road in Heanor,
0:05:43 > 0:05:45a good investment opportunity.
0:05:45 > 0:05:50Who's got £50,000 to start me? £50,000? 50, 48, 48 I have.
0:05:50 > 0:05:54At £48,000. At £48,000 bid.
0:05:54 > 0:05:5749 on the left, 50,000.
0:05:57 > 0:05:59At £50,000, 51 at the back.
0:05:59 > 0:06:0652, 52, 53, 54. 54,000, and five?
0:06:06 > 0:06:1054 and a half. 55, 55,500.
0:06:10 > 0:06:1456,000, 56,500?
0:06:14 > 0:06:20The bid is here at 56,000, we're going to sell, at £56,000. All done with it?
0:06:20 > 0:06:2256, any higher bid, quickly?
0:06:22 > 0:06:25Once, 56,000, twice.
0:06:25 > 0:06:29Third time, all done?
0:06:29 > 0:06:31Sold at 56,000.
0:06:31 > 0:06:33And the new owner is Brian.
0:06:33 > 0:06:40He runs a computer company and lives in nearby Ashbourne with his partner Karen and daughter Holly.
0:06:40 > 0:06:45He paid £56,000 for the property, Seven grand over the guide price.
0:06:45 > 0:06:48I caught up with him there to find out his plans.
0:06:48 > 0:06:51Brian, lovely to meet you. Congratulations.
0:06:51 > 0:06:52Thank you, very much.
0:06:52 > 0:06:55So, why did you want to buy this house?
0:06:55 > 0:06:57It was bought out of the fact that my money was doing nothing in the bank.
0:06:57 > 0:07:01The interest rates had disappeared and I figured putting the money into
0:07:01 > 0:07:03something is better than putting it into nothing.
0:07:03 > 0:07:06I watch your show all the time.
0:07:06 > 0:07:09- Good man.- And I know Heanor reasonably well, so I just saw it,
0:07:09 > 0:07:11I looked through the letterbox, and that was it, give it a go.
0:07:11 > 0:07:13- You didn't come round?- No.
0:07:13 > 0:07:15- GASPS - You said you watch the show a lot!
0:07:15 > 0:07:18I did read the notes, things to be aware of. I remember that much.
0:07:18 > 0:07:22But my total viewing on this house was looking through the letterbox.
0:07:28 > 0:07:33As Brian is an avid viewer of the show, I'm shocked he bought the house blind.
0:07:33 > 0:07:38It's a very risky thing to do and could end up costing him in the long run.
0:07:38 > 0:07:41What did he think when he finally saw inside?
0:07:41 > 0:07:45- I saw it about two days ago, and I was relieved, I'd say.- Uh-huh.
0:07:45 > 0:07:49I spoke to people, and it had a roof upstairs and there was no water,
0:07:49 > 0:07:52didn't smell of damp, so I was reasonably confident it would be OK.
0:07:52 > 0:07:56More work than I probably thought, but equally, it's all do-able.
0:07:56 > 0:07:59- What about this really interesting decor? - HE LAUGHS
0:07:59 > 0:08:02- It's a look, isn't it?- Yes!
0:08:02 > 0:08:06Hopefully, most of it'll be gone with a bit of luck.
0:08:06 > 0:08:09- Some of it's all right, some of it's quite quaint.- Well, yeah.
0:08:09 > 0:08:13We're on a terraced street, I wouldn't imagine there used to be wood beams in it.
0:08:13 > 0:08:15I don't know if they're original or not. We'll have to see.
0:08:15 > 0:08:20I'd hazard a guess that they're not, but they're a feature all the same.
0:08:20 > 0:08:24I'd either take them down completely or strip and paint them white,
0:08:24 > 0:08:26making the place look bigger and brighter.
0:08:26 > 0:08:31In fact, there's not much natural light in the rest of the house.
0:08:31 > 0:08:34But Brian has a plan to fix that.
0:08:34 > 0:08:38The idea is to knock walls down, open it up and make it brighter, because it's very dark.
0:08:38 > 0:08:40That's the first thing I noticed.
0:08:40 > 0:08:43If I can do it, that's my first thing to be able to do.
0:08:43 > 0:08:46I mean, keep up some of the charm, then that might help it.
0:08:46 > 0:08:51If I can, take the wall down there, open up the space to a big living room/dining room.
0:08:51 > 0:08:55If I can do it, put a small corridor in upstairs off one of the bedrooms, and put the bathroom upstairs.
0:08:55 > 0:08:59That's what I'm hoping to do. Freshen the place up, brighten it up,
0:08:59 > 0:09:04do the back garden because that needs tweaking, and hopefully make it a much airier space.
0:09:04 > 0:09:06You need light in this kitchen.
0:09:06 > 0:09:08It's very dark in here, very dark.
0:09:08 > 0:09:12Brian has always been interested in property development.
0:09:12 > 0:09:15He started a project a few years ago with his business partner,
0:09:15 > 0:09:19but unfortunately didn't make much money.
0:09:19 > 0:09:23# Money for nothing and the chicks for free... #
0:09:23 > 0:09:27I did one before and I think I made a grand total of about £50, if I was lucky.
0:09:27 > 0:09:32- What?- I made the fatal error of designing the house for me.- Ah!
0:09:32 > 0:09:36Even though I was never going to live in it. I spent too much,
0:09:36 > 0:09:38let people buy parts for me I should have bought myself,
0:09:38 > 0:09:42so the lessons learnt, I'll bring into this and hopefully make a profit.
0:09:42 > 0:09:46It's absolutely vital to project manage your building work property.
0:09:46 > 0:09:52But Brian is also going to rely on friends and family to help with some of the work, to keep costs down.
0:09:52 > 0:09:58He's given himself a budget of eight to ten grand for the work, and eight to ten weeks to finish it.
0:09:58 > 0:10:03What's the bigger picture plan? Are you going to do it up, sell it on?
0:10:03 > 0:10:05It changes every time I come in!
0:10:05 > 0:10:10I originally bought it thinking we'd rent it, that's what I thought we'd do, that was the plan,
0:10:10 > 0:10:12to put back the interest I was losing at the back.
0:10:12 > 0:10:16Then I thought, I might have a go at selling it. I'm on the fence.
0:10:16 > 0:10:20I'm leaning towards selling it at the moment. Again, it's the availability of mortgages.
0:10:20 > 0:10:22That might focus us to have to rent it.
0:10:22 > 0:10:27A first-time buyer may well struggle to get a mortgage, so it may well get rented. We'll wait and see.
0:10:27 > 0:10:32I'm hoping to buy one or two more if I can, and get a portfolio going and see where we go from there.
0:10:32 > 0:10:36- Well, congratulations, and we look forward to see how you get on. - Thank you, very much.
0:10:36 > 0:10:42Well, like many people, Brian decided that his money is much better off in bricks and mortar,
0:10:42 > 0:10:46rather than in the bank getting no interest and I agree with him.
0:10:46 > 0:10:51A bit concerned as to whether or not he's learnt from his mistakes in the past on his renovations,
0:10:51 > 0:10:55but hopefully he has. You can find out later in the show.
0:10:59 > 0:11:01In the autumn of 2007,
0:11:01 > 0:11:05I travelled to Kent to see a rather quirky and interesting lot.
0:11:05 > 0:11:11The two most important factors for a move out of London are commutability and schools.
0:11:11 > 0:11:15Tunbridge Wells offers both, so when you hear of a lot with a guide price
0:11:15 > 0:11:21of just 130-150,000, that makes you sit up and take notice.
0:11:22 > 0:11:25So is it anything like these properties?
0:11:27 > 0:11:32This lot sits on a nice residential road with lovely houses,
0:11:32 > 0:11:39and property prices range from £180-240,000. So that guide price is far too modest,
0:11:39 > 0:11:44until I tell you the lot up for auction today isn't a house, it's a stable.
0:11:47 > 0:11:52It looks more like a dilapidated storage area to me.
0:11:52 > 0:11:58But I'm not downbeat about that, because the auction catalogue hints at something very exciting indeed.
0:11:58 > 0:12:04It says the building is considered suitable for a variety of uses, or perhaps the possibility
0:12:04 > 0:12:09of demolition, knocking it down, and rebuilding something else here,
0:12:09 > 0:12:12subject to all the necessary consents being obtainable of course.
0:12:12 > 0:12:14Now that's interesting.
0:12:14 > 0:12:16It's certainly widened my eyes.
0:12:18 > 0:12:22It's obvious this stable hasn't seen too many horses over the last few months.
0:12:22 > 0:12:28It's funny, it's more like an old workshop. By the looks of things, they've left so much wood.
0:12:28 > 0:12:34It smells really lovely. There's even stacks of the stuff left up there.
0:12:34 > 0:12:38It's hard to imagine building a house on just this footprint alone.
0:12:38 > 0:12:42I'm wondering what's round the back of here. There must be more.
0:12:42 > 0:12:45Despite its recent use as a joinery workshop/timber storage,
0:12:45 > 0:12:50it was a stable, long before the current houses were built.
0:12:50 > 0:12:53The horses have well and truly bolted now.
0:12:53 > 0:12:57What's left is a building rather out of sorts with the rest of the street.
0:12:57 > 0:13:03As well as a substantial stable, you also get a huge plot.
0:13:06 > 0:13:08Imagine those development opportunities.
0:13:08 > 0:13:14Now that 130-150,000 guide price makes more sense.
0:13:14 > 0:13:19What's on offer is an opportunity for a new build, but it'll be a gamble.
0:13:19 > 0:13:21No planning permission has been granted.
0:13:21 > 0:13:26But it's on a residential road and I think a house would sit better here than the current structure.
0:13:26 > 0:13:32But as that's already there, the chances of building something else here are pretty good.
0:13:32 > 0:13:36Maybe someone will want a place to keep their ponies or horses,
0:13:36 > 0:13:39but with such a central location and the hint of development,
0:13:39 > 0:13:43I doubt there will be many equestrians interested in this one.
0:13:43 > 0:13:46This has got speculative developer written all over it.
0:13:46 > 0:13:48Let's go to auction.
0:13:48 > 0:13:51As this lot came at the end of the auction, the room is fairly quiet.
0:13:51 > 0:13:54So, was there the chance of a bargain?
0:13:54 > 0:13:57Lot 170, we move to the stable, Springfield Road,
0:13:57 > 0:13:59Southborough, Tunbridge Wells.
0:13:59 > 0:14:04130 to start me?
0:14:04 > 0:14:06Anybody would like to join in? 120?
0:14:06 > 0:14:11120? Yes, at £120,000 is bid, 125 for anyone else?
0:14:11 > 0:14:13125 I'm bid.
0:14:13 > 0:14:18130, 130 is bid. 135?
0:14:18 > 0:14:20135, 140.
0:14:20 > 0:14:23135, the lady's bid. 140 for you?
0:14:23 > 0:14:27137, 137 is bid. 140?
0:14:27 > 0:14:31140 I have. 142?
0:14:31 > 0:14:39At £140,000, it's the lady's bid, at 140 then I'm selling if you're shaking your head?
0:14:39 > 0:14:44At £140,000 is bid on my left hand side, for the first time at 140,000.
0:14:44 > 0:14:48For the second time at £140,000.
0:14:48 > 0:14:52You lose it at 140,000, third and final time, are you all done?
0:14:52 > 0:14:56Sold at 140.
0:14:56 > 0:15:01Well, I wouldn't really say bargain, but when the hammer fell at 140,000,
0:15:01 > 0:15:04the new owner became local lady, Margaret.
0:15:04 > 0:15:09She's a part time management trainer who dabbles in property development on the side.
0:15:09 > 0:15:11While her daughter Becky explores the site further
0:15:11 > 0:15:16I caught up with Margaret to find out why she wanted this place.
0:15:16 > 0:15:19I knew a builder who was interested and knew the people who owned it,
0:15:19 > 0:15:22and I think he'd been trying to buy it for a few years, and then
0:15:22 > 0:15:27I happened to drive past one day and saw the auction sign and thought, "Right, that's it, I'm going."
0:15:27 > 0:15:34That was three days before the auction, so it was a bit of a mad panic to get all the bits and pieces,
0:15:34 > 0:15:36but we got them and I went and here we are.
0:15:36 > 0:15:38What are you going to do with this place?
0:15:38 > 0:15:42We're planning on putting a four bedroom detached house on it.
0:15:42 > 0:15:46- So you're going to demolish it. - Yes, completely.
0:15:46 > 0:15:54Take it back to the building line in the street and put a four bedroom, three storey house on it, we hope.
0:15:54 > 0:15:58With or without a builder on board, this is a big project.
0:15:58 > 0:16:02It's got no current planning permission and plans will need to be drawn up and submitted.
0:16:02 > 0:16:08Margaret needs to install the services and then knock down the building to create a new one.
0:16:08 > 0:16:10No mean task.
0:16:10 > 0:16:13So what experience have you got within the property world?
0:16:13 > 0:16:17I've been renovating houses off and on for about 20 years,
0:16:17 > 0:16:25but always just bought renovated, lived in and mainly sort of Victorian properties and things like this,
0:16:25 > 0:16:30but I have always fancied the idea of doing a new build, so this is a step into the unknown.
0:16:30 > 0:16:34So is this your dream, building a brand new house from scratch?
0:16:34 > 0:16:38Yes, I suppose it is. It's a dream that I've held for a while.
0:16:38 > 0:16:43Whether this will be my dream house is a different matter, but certainly
0:16:43 > 0:16:48it's a dream that I've wanted to build something from scratch, yes.
0:16:48 > 0:16:50- Are you going to live here? - Eventually.
0:16:50 > 0:16:55Once the house is built, yes, I'll sell the house that I'm living in and move in here,
0:16:55 > 0:16:59and then we'll stay here until we find the next project.
0:16:59 > 0:17:05So Margaret is using this as a stepping stone to gain experience of the complex world of new builds.
0:17:05 > 0:17:11But it's an expensive way of learning and she's already paid 140,000 for the stables and land.
0:17:11 > 0:17:14How much money have you got to spend on this?
0:17:14 > 0:17:20If you include bringing in all the services, we're hoping to get the building about 200,000,
0:17:20 > 0:17:28but then probably bringing in, because there's currently no gas, no water, no nothing.
0:17:28 > 0:17:32If you include all the legals and everything, probably about 250,000.
0:17:32 > 0:17:36OK, what do you think the house will be worth once you've done it?
0:17:36 > 0:17:38We'll hopefully be at break even point.
0:17:38 > 0:17:44That kind of budget potentially takes her costs up to £400,000.
0:17:44 > 0:17:49With an estate agent valuation of around 275, I'm already worried
0:17:49 > 0:17:53Margaret could be lining herself up for a big financial fall.
0:17:53 > 0:17:56She's also got a few practical problems, too.
0:17:56 > 0:17:58What are you worried about?
0:17:58 > 0:18:02Getting planning permission, first of all.
0:18:02 > 0:18:06The Japanese knotweed which is currently infesting the garden, which I didn't know anything about.
0:18:06 > 0:18:08Tell me about it. What is it?
0:18:08 > 0:18:12It's a horrendous weed apparently that was brought in by the Victorians.
0:18:12 > 0:18:17It's an ornamental shrub, but is incredibly invasive.
0:18:17 > 0:18:24It's classed as an environmental hazard so you've got to have it cleared by somebody who's licensed
0:18:24 > 0:18:27to clear it, and you've got to get the necessary certification
0:18:27 > 0:18:32because it'll grow through concrete, tarmac, through just about anything and everything.
0:18:32 > 0:18:35So it's got to be treated with care.
0:18:35 > 0:18:39But I've had a company in, they've had a look at it and they think that
0:18:39 > 0:18:42it's not too big a problem, according to them.
0:18:42 > 0:18:46Let's hope they're right because Japanese knotweed could scupper everything.
0:18:46 > 0:18:51There's a legal requirement to remove it to a registered site,
0:18:51 > 0:18:54which could cost between 10,000 and 50,000!
0:18:54 > 0:18:58So potentially a massive blow.
0:18:58 > 0:19:03So do you feel you've taken a huge risk in even buying this place?
0:19:03 > 0:19:06Yeah, I mean...
0:19:06 > 0:19:11Mortgaged up to be hilt at the moment, ready for it, so yes, it is.
0:19:11 > 0:19:16First time I've ever done a new build, so yeah, big risk.
0:19:16 > 0:19:18But exciting as well.
0:19:18 > 0:19:23The pendulum swings from one end to the other and it's kind of, "Oh, my God, what have I done?"
0:19:23 > 0:19:26To "Wow!"
0:19:26 > 0:19:28And all points in between, really.
0:19:28 > 0:19:31That was back in 2007.
0:19:31 > 0:19:36And boy, wasn't Margaret right? This was one tough project for her.
0:19:36 > 0:19:40There were quite a few downs and some extremely knotty problems
0:19:40 > 0:19:44to untangle before finally the old stables became a house.
0:19:44 > 0:19:47You can see the end result later in the show.
0:19:48 > 0:19:52Coming up, from the front this flat in Wiltshire seems quite small.
0:19:52 > 0:19:55And then you discover this room!
0:19:55 > 0:19:58Absolutely superb!
0:19:58 > 0:20:02Back in Tunbridge Wells and some serious problems.
0:20:02 > 0:20:06My thought was, well, it's only a plant, how difficult can it be?
0:20:06 > 0:20:08But I was a bit naive.
0:20:11 > 0:20:15But first we return to Derbyshire to hear whether there were any unforeseen problems.
0:20:15 > 0:20:19My total viewing on this house was looking through the letterbox.
0:20:20 > 0:20:25We're back in Derbyshire at this two bedroom terraced house in Heanor.
0:20:25 > 0:20:31Brian, who runs his own IT company, bought it at auction for £56,000.
0:20:31 > 0:20:35He thought he could make a better return on his money than by leaving it in a bank.
0:20:35 > 0:20:40Interest rates have disappeared. I figured that putting money into something is better than nothing.
0:20:40 > 0:20:43So what has he done here?
0:20:43 > 0:20:48We caught up with him four months later and discovered there have been quite a few changes.
0:20:52 > 0:20:57The main things I've done is completely redesign the whole layout.
0:21:02 > 0:21:05I've moved the bathroom from the back of the house upstairs.
0:21:08 > 0:21:11Moved the kitchen from the middle of the house to the back.
0:21:15 > 0:21:19We've rewired it, we've plumbed it, fitted new windows where necessary,
0:21:19 > 0:21:21we've redecorated it, we've recarpeted it.
0:21:21 > 0:21:23So pretty much a complete refurbish.
0:21:23 > 0:21:26The whole house looks much more modern and attractive.
0:21:26 > 0:21:29The main layout change was downstairs.
0:21:29 > 0:21:33The living room once led on to a kitchen in the middle of the house,
0:21:33 > 0:21:36but now there's a bright kitchen where the bathroom used to be.
0:21:36 > 0:21:41I noticed when I bought the property completely blind, was that this was the kitchen.
0:21:41 > 0:21:44It was really dark and depressing, because there was no natural light.
0:21:44 > 0:21:47One of my key things to do was to move the kitchen backwards,
0:21:47 > 0:21:50towards where the natural light was and bring a window in.
0:21:50 > 0:21:55So we've moved the kitchen to where the bathroom used to be, put that upstairs.
0:21:55 > 0:21:58This is a nice dining area with a separate wall to give us a study.
0:21:58 > 0:22:00We've opened up into a nice kitchen.
0:22:00 > 0:22:04Again, that goes into the utility area and I'm really pleased with it.
0:22:04 > 0:22:06And what a great job he's done.
0:22:06 > 0:22:09The kitchen is smart, bright and flooded with natural light.
0:22:09 > 0:22:13That little extra room will come in handy, too.
0:22:13 > 0:22:17I wanted to create some space downstairs where somebody could have a living room
0:22:17 > 0:22:20and a hobbies area because a lot of people have a computer and that type of thing.
0:22:20 > 0:22:23So we've got a hobbies area and a dining area.
0:22:23 > 0:22:26It's given us a lot more space so you can do different things.
0:22:26 > 0:22:29Somebody can be in the kitchen, the living room or on the computer.
0:22:29 > 0:22:34Rather than being a small terraced house, it's a much bigger feel to it now than it did before.
0:22:34 > 0:22:40Brian shifted the toilet upstairs, which I was hesitant about due to the costs involved.
0:22:40 > 0:22:44But he was determined to 'loo-se' it from downstairs.
0:22:44 > 0:22:49I wouldn't want to live in a house with a downstairs bathroom because the bedrooms are so far away.
0:22:49 > 0:22:53We all want a bathroom upstairs, so we put it upstairs, into the back bedroom,
0:22:53 > 0:22:59but still managed to retain enough space in the bedroom for it to be useful.
0:22:59 > 0:23:02Even after buying the bathroom suite I was worried how we'd get it in.
0:23:02 > 0:23:05We took the window out of the back of the house to bring the bath in.
0:23:05 > 0:23:08So it was a challenge and it's worked out really well.
0:23:08 > 0:23:11And it's a clever renovation, too. Brian has managed to keep the two bedrooms
0:23:11 > 0:23:15whilst opening the whole place up, making it feel much lighter.
0:23:21 > 0:23:25Brian went over his seven and a half grand renovation budget
0:23:25 > 0:23:29as unforeseen problems raised it by four grand to 11,500.
0:23:29 > 0:23:31But that's the risk when you buy blind.
0:23:31 > 0:23:34When I bought the property I didn't look at it at all.
0:23:34 > 0:23:37It was literally through the window, so that was fun.
0:23:37 > 0:23:41Certain things that I thought would probably want doing that I had underestimated.
0:23:41 > 0:23:46Electricity was one of the things. I thought we'd add a few extra sockets, that ended up a complete rewire.
0:23:46 > 0:23:49And damp as well, there was damp in the property
0:23:49 > 0:23:53as I didn't get in the property I wasn't able to have a sniff. So that was a problem.
0:23:53 > 0:23:56Again, those were the two main horrors on the project.
0:23:56 > 0:23:58The rest of it was things that I expected.
0:23:58 > 0:24:01It went over a bit in terms of what I've spent,
0:24:01 > 0:24:06but overall I'd say the wiring up and the damp have been the two unforeseen problems.
0:24:06 > 0:24:10Luckily, help was on hand in the form of his brother Andrew.
0:24:10 > 0:24:13In fact, Brian took a hands off approach to the project.
0:24:13 > 0:24:17It was actually Andrew who was in charge of the day to day work.
0:24:26 > 0:24:31The moment I bought the property, the first person I wanted to get involved was my brother.
0:24:31 > 0:24:35He's very, very hands on. He runs his own business as well, which is really good.
0:24:35 > 0:24:37He knows lots of people who are very good.
0:24:37 > 0:24:42He was the first person I brought in and he's been brilliant. I've enjoyed working with him.
0:24:42 > 0:24:45I've not done as much as I would have liked in terms of labour,
0:24:45 > 0:24:48but I've been very much involved on decision making. It's been brilliant.
0:24:48 > 0:24:56The whole family chipped in. Brian's dad is a keen gardener and sorted out the overgrown mess at the back.
0:24:56 > 0:25:00His mum helped with the decorating, which is just as well as it doesn't
0:25:00 > 0:25:03sound like Brian is too handy around the house.
0:25:03 > 0:25:06I'm absolutely useless when it comes to anything hands on.
0:25:06 > 0:25:10If I opened a tin of paint, I'd have spilt it and caused chaos.
0:25:10 > 0:25:12I'm very much of ideas, and I know what I want.
0:25:12 > 0:25:15I'm good at the vision, but somebody like my brother is
0:25:15 > 0:25:18really good at making the vision a reality and it's been brilliant.
0:25:18 > 0:25:21But has that vision added value to the house?
0:25:21 > 0:25:25Brian has spent a total of £67,000 on it.
0:25:25 > 0:25:30He bought it for 56 grand and spent 11,000 on the work.
0:25:30 > 0:25:35I asked two local property experts for their opinions on the place now.
0:25:38 > 0:25:42My first impressions, coming back to the house, are very good.
0:25:42 > 0:25:45They've done a superb rework of the internal layout of the house
0:25:45 > 0:25:50and also done a very nice job of the decor and finishing up.
0:25:50 > 0:25:53My first impression is they've done a great job,
0:25:53 > 0:25:56certainly the kitchen and bathroom, it's excellent.
0:25:56 > 0:25:59The fact they've moved the bathroom upstairs is a real winner.
0:25:59 > 0:26:02When I first saw the property it was difficult to imagine whether
0:26:02 > 0:26:05you could do it and keep it as a proper two bedroom property.
0:26:05 > 0:26:07They've achieved that, which is really good.
0:26:07 > 0:26:11By moving the bathroom upstairs they've appealed to more buyers.
0:26:11 > 0:26:16A lot of people don't like ground floor bathrooms so it has opened the market up considerably for them.
0:26:19 > 0:26:23The kitchen itself is quite bright and airy, and they've opened it right up.
0:26:23 > 0:26:25It's a nice, family kitchen,
0:26:25 > 0:26:28quite a lot of appliances plus the utility as well,
0:26:28 > 0:26:30which is quite a bonus, really, for a mid-terrace property.
0:26:30 > 0:26:35How much do they think it could resell for in the current market?
0:26:35 > 0:26:39I'd put it on the market for around £85,000.
0:26:39 > 0:26:43If I had to put the property on the market I'd put it on the market in the region of £85,000.
0:26:43 > 0:26:46I think that's great.
0:26:46 > 0:26:49Prior to doing the work, 80 to 85 was what we were looking to achieve.
0:26:49 > 0:26:51Yeah, I think that's very good.
0:26:51 > 0:26:54Better than what we expected to get as well. That's really good.
0:26:54 > 0:27:01As Brian's total spend was £67,500, including building costs,
0:27:01 > 0:27:07that would mean a healthy profit of around £17,500 minus deductions.
0:27:07 > 0:27:10But how much could the property rent for?
0:27:10 > 0:27:14It'll probably achieve in the region of £450 per calendar month on the rental market.
0:27:14 > 0:27:18This property would achieve £450 per calendar month on the open rental market.
0:27:18 > 0:27:20That's a high figure, actually.
0:27:20 > 0:27:22It's a lot higher than you'd expect.
0:27:22 > 0:27:24Yeah, £50 higher than I'd have thought.
0:27:24 > 0:27:26You said 400 to 420, didn't you?
0:27:26 > 0:27:29If that. If they can achieve it, that's a very good figure.
0:27:29 > 0:27:35It sounds like the brothers' first project together has been a success,
0:27:36 > 0:27:39but would they work together again?
0:27:39 > 0:27:45Definitely. I think we definitely will. I've not been here that often, which probably has been fine
0:27:45 > 0:27:47- as you've been able to get on with it.- Definitely.
0:27:47 > 0:27:51We work well as a team anyway, and we're good friends and brothers as well, so...
0:27:54 > 0:27:59Andrew is even willing to forgive Brian for his lack of DIY skills.
0:27:59 > 0:28:02He's very bad at DIY. He's good at promising me he'll be here,
0:28:02 > 0:28:07but unfortunately he gets tied up so I end up doing most of the work, which I enjoy doing anyway.
0:28:07 > 0:28:10- I give him something to do. - Ha! Yeah, thanks for that.
0:28:13 > 0:28:17Welcome to Warminster in Wiltshire.
0:28:17 > 0:28:21This pretty town lies southwest of Salisbury Plain at the head of the beautiful
0:28:21 > 0:28:25Wylye Valley with its attractive villages and impressive landscape.
0:28:25 > 0:28:30It's also very near Longleat, home of the UK's first ever safari park.
0:28:30 > 0:28:36But I'm hoping the property I've come to see doesn't turn out to be a white elephant.
0:28:36 > 0:28:41# Love is, love is a big scary animal... #
0:28:41 > 0:28:44Well, I'm right here in the centre of the town.
0:28:44 > 0:28:48Up for auction was a Grade II listed, three storey building.
0:28:48 > 0:28:51It's got a retail unit on the bottom
0:28:51 > 0:28:57and a two bedroom flat above, and a guide price of 130,000 quid -
0:28:57 > 0:28:59that sounds pretty good, doesn't it?
0:28:59 > 0:29:03And it looks pretty good, too.
0:29:03 > 0:29:07There's a period roof with gorgeous little windows upstairs and the commercial premises on
0:29:07 > 0:29:10the ground floor appear to be in tip top condition.
0:29:10 > 0:29:13But it turns out it has a very varied past.
0:29:13 > 0:29:19I've been asking around and apparently this place has been everything from a map shop
0:29:19 > 0:29:24to an optician's to a Chinese restaurant to more recently an interior design show room.
0:29:24 > 0:29:29That does slightly concern me because if all those businesses have failed, well...
0:29:29 > 0:29:33Anyway, what have we got, though? A really nice commercial space here.
0:29:33 > 0:29:36I love the fact it's got these features. A lovely old fireplace.
0:29:36 > 0:29:40This would work well as something like an interior design place.
0:29:40 > 0:29:45Again, as you come through what's a fairly nice open space, another fireplace here.
0:29:45 > 0:29:50Lovely. Then out the back, extra space, which could be an office area
0:29:50 > 0:29:53or whatever you wanted, and further on a bit of a garden area, too.
0:29:53 > 0:29:56So it's all pretty good, light and airy. We like that.
0:29:56 > 0:29:58The only thing I haven't found yet...
0:29:58 > 0:30:01is the entrance to the flat.
0:30:01 > 0:30:02A-ha!
0:30:05 > 0:30:09That's not good, is it? You have to come through the shop to get to the flat.
0:30:09 > 0:30:12# Trying to make some sense of it all,
0:30:12 > 0:30:16# But I can see it makes no sense at all... #
0:30:16 > 0:30:20The property was built in the 18th century and is Grade II listed.
0:30:20 > 0:30:25That means you might not get planning permission to change that entrance to the flat.
0:30:25 > 0:30:29It may not be very convenient, but for now, we're just stuck with it.
0:30:36 > 0:30:41I went up to the top floor to check out those bedrooms.
0:30:41 > 0:30:45When you come up those stairs, you don't know what you'll find,
0:30:45 > 0:30:48and then you discover this room.
0:30:48 > 0:30:50Absolutely superb!
0:30:50 > 0:30:54I love the open beams and the fact that it's got all these angles.
0:30:54 > 0:30:57It's just got so much character.
0:30:57 > 0:31:00Little windows. You are on the high street, so it might be a bit noisy.
0:31:00 > 0:31:04But there's windows at both ends, so lots of light.
0:31:04 > 0:31:09There's also another smaller bedroom on the other side, no windows in that one, but a very useable space.
0:31:09 > 0:31:13And it literally is, for me, the icing on the cake.
0:31:13 > 0:31:15# Sugar...
0:31:15 > 0:31:19# Aw, honey, honey... #
0:31:20 > 0:31:26To sweeten it even more, on the first floor there's a newly-tiled bathroom and a neat kitchen.
0:31:26 > 0:31:30This has a handy serving hatch into a great dining space,
0:31:30 > 0:31:34which in turn leads on to a well-proportioned living area.
0:31:36 > 0:31:43The whole place could do with a little bit of work to polish those edges, but nothing major.
0:31:43 > 0:31:47The cherry on the cake is a massive garden out the back.
0:31:47 > 0:31:50It needs a bit of love and attention but it's a great space.
0:31:52 > 0:31:54What will a local estate agent make of it all?
0:31:54 > 0:31:57I invited one round to have a look.
0:31:57 > 0:32:00It's a small commercial shop which is in fairly good order throughout.
0:32:00 > 0:32:04There is a two-bedroom flat over it which does need some TLC.
0:32:04 > 0:32:08Biggest negative is, the flat is accessed through the commercial property.
0:32:08 > 0:32:13This means that the only buyers will likely be an owner/investor,
0:32:13 > 0:32:17someone who'll live on the property while using downstairs as a shop.
0:32:17 > 0:32:25Despite the large garden at the back, there's no garage, and the parking is limited out the front.
0:32:25 > 0:32:27The property's in the town centre, so parking is to a minimum.
0:32:27 > 0:32:30There is no parking with the property itself.
0:32:30 > 0:32:35However, there are various one-hour, two-hour spaces within easy walking distance.
0:32:37 > 0:32:40So, what can you rent it out for?
0:32:40 > 0:32:46To rent the property out in its entirety, we're looking at around about 7 to 7,500 per annum.
0:32:46 > 0:32:49What if the buyer were to resell?
0:32:49 > 0:32:54Once renovated and someone puts a lick of paint on, changes the kitchen and bathroom upstairs,
0:32:54 > 0:32:59you're looking at the region of 150,000 to possibly £175,000.
0:32:59 > 0:33:08If bought at that guide price of 130,000, that could be a fantastic pre-tax profit of up to 45 grand.
0:33:08 > 0:33:11There may not be any stock on display in the shop just yet,
0:33:11 > 0:33:14but I reckon this property could fly off the shelves.
0:33:14 > 0:33:20This is without doubt a very interesting opportunity.
0:33:20 > 0:33:22You've got the flat and the shop,
0:33:22 > 0:33:26which gives you the opportunity for lots of different revenue streams.
0:33:26 > 0:33:29But previous businesses here have failed,
0:33:29 > 0:33:32and access is definitely an issue,
0:33:32 > 0:33:34so it's not all plain sailing.
0:33:36 > 0:33:41But overall, I'm sure someone fancied the opportunity when it went under the hammer.
0:33:41 > 0:33:46Let's move on, then, to 15, George Street, Warminster.
0:33:46 > 0:33:52120, we'll start there, shall we? £120,000. I'll go in twos. 122. 124.
0:33:52 > 0:33:55At 124,000. 126.
0:33:55 > 0:33:59At £126,000. 128 in the middle.
0:33:59 > 0:34:02At £128,000.
0:34:02 > 0:34:04I'll take 30 from anyone. At 130.
0:34:04 > 0:34:1032. 4. At 134. 136. 38. 40?
0:34:10 > 0:34:13At £138,000. I'll take 140, OK.
0:34:13 > 0:34:17And 2 round the corner. At £140,000. 2, anyone?
0:34:17 > 0:34:21Otherwise, £140,000, for the first time. Take 2 or 1, if you like.
0:34:21 > 0:34:25142, OK, thank you very much at the back. At £142,000.
0:34:25 > 0:34:28I'll take 4 from anyone else. Or 3 if you like, over there.
0:34:28 > 0:34:33Yes or no? Otherwise, £142,000 for the first time.
0:34:33 > 0:34:37Right at the back, £142,000. For the second time at 142.
0:34:37 > 0:34:41Third and last time. Your number, sir, is?
0:34:41 > 0:34:46The successful bidder there was Tom, who lives just round the corner from the property.
0:34:48 > 0:34:53He paid £142,000 for it, 12 grand over the guide price.
0:34:53 > 0:34:57Tom's the co-owner of an eco-conscious furniture retailer.
0:34:57 > 0:35:01I caught up with him back at his new house/shop.
0:35:03 > 0:35:07Tom, good to meet you. Congratulations. Really interesting property.
0:35:07 > 0:35:11- Why did you want to buy it? - A few life changes have gone on.
0:35:11 > 0:35:13Three years ago, I had a double bypass.
0:35:13 > 0:35:17- I'm a fitness fanatic.- Right.
0:35:17 > 0:35:19Mountain biking, windsurfing.
0:35:19 > 0:35:26I was out on a 20-mile cycle ride, got back, then the problems started.
0:35:26 > 0:35:33So, rushed to Bath Hospital, five and a half weeks later, double bypass, and that was that.
0:35:33 > 0:35:35Got myself back on track, I went travelling round
0:35:35 > 0:35:39Spain for six months, came back, decided to set up a small business.
0:35:39 > 0:35:42So I've been looking out for something to have a go with.
0:35:42 > 0:35:49So, once Tom recovered, he decided to turn his life around by giving up his furniture-sales job
0:35:49 > 0:35:55to go into business for himself, selling eco-friendly furniture imported from South Africa.
0:35:55 > 0:35:58This property was the ideal place for his latest venture and new home.
0:35:58 > 0:36:01At the moment, he's renting nearby.
0:36:01 > 0:36:04I only live about 100 yards up the road.
0:36:04 > 0:36:09I was walking down the street one evening, saw the sign up there, "To buy",
0:36:09 > 0:36:13and zapped off to auction a week later.
0:36:13 > 0:36:16- Happy with what you paid? - Totally, yes.
0:36:16 > 0:36:20My figure was probably going to go another 10,000, so it stopped at the right time.
0:36:20 > 0:36:24And with that ten grand he didn't need to spend buying the flat and shop,
0:36:24 > 0:36:28Tom could afford the work needed to fix them up.
0:36:28 > 0:36:34And it's the plan to run the downstairs as a shop and you live upstairs?
0:36:34 > 0:36:36Exactly, yes. Very much so.
0:36:36 > 0:36:38So, on site all the time.
0:36:38 > 0:36:41There is an issue about living and working in the same place.
0:36:41 > 0:36:45Sometimes that doesn't work too well, you can never escape from work. Are you worried?
0:36:45 > 0:36:50No. There's probably be a "Gone windsurfing" sticker
0:36:50 > 0:36:53across the front door most of the time, so see what happens!
0:36:59 > 0:37:05It's good to hear Tom's going to take a relaxed approach, especially after all he's been through.
0:37:05 > 0:37:11He's trying to take the stress out of the work by doing a lot himself and getting some help from friends.
0:37:13 > 0:37:18I've got good friends, electricians, plumbers, so bring the guys in and get it done.
0:37:18 > 0:37:24I've got friends who are shop dressers, hopefully get a few ideas from them,
0:37:24 > 0:37:28- and see what we can come up with. - Right. What sort of budget have you put aside for the work?
0:37:28 > 0:37:34I think for kitchen, bathroom, carpets, within 10,000 should sort all that out.
0:37:34 > 0:37:40And buying a bit of stock, as well, on top of everything else, probably another 10,000 to do that.
0:37:40 > 0:37:44What kind of timescale have you got to make it work?
0:37:44 > 0:37:46Have you got a cut-off point in your head?
0:37:46 > 0:37:49I wish you all the best, but running a business is never easy,
0:37:49 > 0:37:54so will you draw a line under it if it does work or doesn't work?
0:37:54 > 0:37:58Totally, yeah. The whole thing is whether you could convert it back into a house.
0:37:58 > 0:38:01At the moment, it's paid for, it's done.
0:38:01 > 0:38:04If the business succeeds, it's icing on the cake.
0:38:04 > 0:38:09So... At the moment, I'm renting accommodation, and that's just
0:38:09 > 0:38:13paying money out month after month, so here it's all paid for, done.
0:38:13 > 0:38:18In the worst-case, you've got somewhere to live, so if the business is a success, it's a bonus.
0:38:18 > 0:38:22- Exactly, yeah.- It certainly sounds like Tom has made a good purchase
0:38:22 > 0:38:24for the new lifestyle he plans for himself.
0:38:25 > 0:38:30Well, a new life for Tom, and I wish him all the best with it.
0:38:30 > 0:38:36The biggest challenge ahead is, will his upmarket furniture business work in Warminster?
0:38:36 > 0:38:39Sorting out the flat I don't think is going to be too much of a problem.
0:38:39 > 0:38:42You can find out how he gets on later in the show.
0:38:45 > 0:38:50Time has passed since we last saw those properties and we are dying to find out what happened to them.
0:38:50 > 0:38:56- Have they been transformed or are they still exactly as they were? - Let's find out.
0:39:00 > 0:39:05It was back in the autumn of 2007 when I first visited Tunbridge Wells
0:39:05 > 0:39:08and came across a building known locally as The Stables.
0:39:08 > 0:39:12This old workshop-cum-storage area was sandwiched between
0:39:12 > 0:39:16residential properties, and had a reasonable amount of land.
0:39:16 > 0:39:22It seemed ripe for development, but without planning permission in place, buying it was risky.
0:39:22 > 0:39:26But this was a gamble local resident Margaret was prepared to take,
0:39:26 > 0:39:32and she bought it at auction for the not-insignificant sum of £140,000.
0:39:32 > 0:39:34So what are you worried about?
0:39:34 > 0:39:37Getting planning permission, first of all!
0:39:37 > 0:39:42The Japanese knotweed that's currently infesting the garden, which I didn't know anything about.
0:39:46 > 0:39:50When we returned for the first time, ten months later, progress was slow,
0:39:50 > 0:39:52and it seemed Margaret was right to be worried.
0:39:57 > 0:39:59When we found out there was knotweed on the site, initially
0:39:59 > 0:40:04my thought was, "It's only a plant, how difficult can it be?"
0:40:04 > 0:40:08But I was a bit naive in that view.
0:40:08 > 0:40:12Yes, Japanese knotweed is horrible stuff.
0:40:12 > 0:40:16Not only is it very invasive, it can grow through concrete,
0:40:16 > 0:40:19and you need to remove every trace of it, or it'll come back.
0:40:19 > 0:40:21It's incredibly hard to stop.
0:40:31 > 0:40:34Getting rid of it comes at a cost.
0:40:34 > 0:40:38Margaret had to fork out £12,000 to deal with it, and a copper-lined
0:40:38 > 0:40:42membrane was put in place to make sure it can't come back.
0:40:42 > 0:40:48And as if that wasn't enough to contend with, there was the small matter of planning permission.
0:40:48 > 0:40:51The initial planning application was for a three-storey, four-bedroomed
0:40:51 > 0:40:54house, which we felt would be in keeping with the street scene.
0:40:54 > 0:41:02Eventually, after three planning applications, we eventually got a three-bedroomed, two-storey house.
0:41:02 > 0:41:05To say things weren't going too well was an understatement.
0:41:05 > 0:41:11With costs spiralling and the property market falling, Margaret was between a rock and a hard place.
0:41:11 > 0:41:15But she decided she had no option but to push on and build.
0:41:24 > 0:41:29And now, two years after she bought the old Stables, we're back.
0:41:39 > 0:41:42At last, Margaret can walk into the three-bedroom house that she's built.
0:41:50 > 0:41:54But the house is not as big as she'd originally planned, so she decided not to move in.
0:41:54 > 0:42:00But that didn't put her off continuing with the project, and it's a testament to her persistence.
0:42:00 > 0:42:02I don't think there was ever a time where I was going to give up,
0:42:02 > 0:42:06because we couldn't, I couldn't give up. It had to be completed.
0:42:06 > 0:42:08I don't know about being upbeat.
0:42:08 > 0:42:12Sometimes I'd run screaming for the hills!
0:42:12 > 0:42:14But I think you've kind of got to.
0:42:14 > 0:42:18I suppose now we're seeing the end of the project, and hopefully,
0:42:18 > 0:42:21I'm starting to see the light at the end of a very long tunnel.
0:42:21 > 0:42:25It's now nearly ready to go on the market, with a tiled floor
0:42:25 > 0:42:29in the entrance hall, a downstairs cloakroom...
0:42:35 > 0:42:39a good-sized living room...
0:42:39 > 0:42:42and a fabulous modern kitchen area.
0:42:45 > 0:42:48This is one of my favourite rooms in the house.
0:42:48 > 0:42:52It's nice and light and bright with the windows and the doors.
0:42:52 > 0:42:57The kitchen has come up really well, with the wood and the granite.
0:42:57 > 0:43:02There's fitted units, washer,
0:43:02 > 0:43:08fridge freezer is over here.
0:43:08 > 0:43:12So, plenty of storage.
0:43:12 > 0:43:17I think it's going to be a nice family room, which people can enjoy
0:43:17 > 0:43:21and live in, and obviously use the garden if they've got children.
0:43:21 > 0:43:24And it's a great enclosed family garden.
0:43:24 > 0:43:27Thankfully, there's not a knotweed in sight!
0:43:27 > 0:43:30When we changed the design from a three-storey to a two-storey, we
0:43:30 > 0:43:35had to change the layout slightly, so we've now got two bedrooms at the back,
0:43:35 > 0:43:40nice family bathroom, and this is the main bedroom with the en suite.
0:43:40 > 0:43:45There's built-in storage, TV point up on the wall,
0:43:45 > 0:43:49so people can have a flatscreen and lie in bed and watch TV.
0:43:49 > 0:43:54It's south-facing, so it'll be a nice, light, bright, airy room.
0:43:54 > 0:43:59This may not be the biggest house in the world, but Margaret and her architect have made the most of
0:43:59 > 0:44:03the space, and created a really pleasant family home.
0:44:03 > 0:44:07But in reality, Margaret had hoped for so much more.
0:44:07 > 0:44:13The whole planning process, I think I was a little naive, in that I thought that,
0:44:13 > 0:44:18providing we had a reasonable plan that fitted in with the location
0:44:18 > 0:44:21and the street scene, that there wouldn't be a problem.
0:44:21 > 0:44:27I didn't foresee the huge problems that would come out of that process.
0:44:27 > 0:44:32Margaret is clearly disappointed not to have got permission to build a bigger house,
0:44:32 > 0:44:35especially as it now seems rather dwarfed by those beside it.
0:44:35 > 0:44:40Her original plans might have cost more, but could have given her
0:44:40 > 0:44:43a better chance of seeing a reasonable return on the project.
0:44:45 > 0:44:50Well, the original budget was probably about £250,000.
0:44:50 > 0:44:53That got blown out of the water with the knotweed, I'm afraid.
0:44:53 > 0:44:58Because, clearly, that was a huge exercise that we hadn't anticipated.
0:44:58 > 0:45:01I think we're currently running at about 330,000.
0:45:02 > 0:45:06So, Margaret reckons that after buying the stables, getting planning
0:45:06 > 0:45:13permission, the build costs and removing the knotweed, her total spend is £330,000.
0:45:13 > 0:45:16Can she hope to get anything like that for this three-bed house?
0:45:16 > 0:45:19What do two local estate agents think?
0:45:23 > 0:45:26I think she's done a pretty good job.
0:45:26 > 0:45:28A tidy finish to at all.
0:45:28 > 0:45:29It's fitted in the site quite well.
0:45:29 > 0:45:32Got the off-road parking in. Not done a bad job at all.
0:45:32 > 0:45:35A very nice kitchen, breakfast room.
0:45:35 > 0:45:37Living room is a lovely size.
0:45:37 > 0:45:43Sitting room's smaller, but I think families tend to live in kitchen living rooms nowadays.
0:45:43 > 0:45:45She's specced the kitchen up well.
0:45:45 > 0:45:47She's specced the bathrooms up well.
0:45:47 > 0:45:52They've squeezed two bathrooms into a relatively small floor space,
0:45:52 > 0:45:55which I think it is really going to add to it and make it attractive.
0:45:55 > 0:45:57As a new-build,
0:45:57 > 0:46:03it sits in amongst a lot of Edwardian and late-Victorian houses,
0:46:03 > 0:46:06which tend to be a bigger scale than this.
0:46:06 > 0:46:10But it sits quite neatly in the plot that it has.
0:46:10 > 0:46:15So, a reasonably favourable response to the house.
0:46:15 > 0:46:20But is its value anywhere near the £330,000 Margaret has spent on it?
0:46:20 > 0:46:23In the current condition, with the market at the present time, I would
0:46:23 > 0:46:28estimate putting this on the market in the region of £320,000 to £330,000.
0:46:28 > 0:46:35For resale purposes I think that the asking price should be around about the £325,000 mark.
0:46:35 > 0:46:40Both fair, I think. That's round about where we thought it would be, around at the 325 mark.
0:46:40 > 0:46:46Still, obviously it doesn't reach break-even point. But that's just where the market is at the moment.
0:46:46 > 0:46:49So, the resale prices aren't great news, but Margaret was
0:46:49 > 0:46:52thinking about tapping into the rental market.
0:46:53 > 0:46:59I'd have thought we could put it on the market for rental at about £1,200 per calendar month.
0:46:59 > 0:47:07My own thoughts on rent are about £950 to £1,000 per calendar month on a rental basis.
0:47:07 > 0:47:14Those rentals are OK, but will only bring in about 3.5% yield.
0:47:14 > 0:47:19Is that enough to hang on to it or would Margaret rather just get rid of the house and move on?
0:47:19 > 0:47:23I still think it'll be better to rent it out and see where the market goes.
0:47:23 > 0:47:26If we can get a long-term rental, so much the better.
0:47:26 > 0:47:29We'll just hope that the market recovers in the next few years.
0:47:29 > 0:47:32This has been a stressful and draining project for Margaret.
0:47:32 > 0:47:37So, presumably, she'll steer well clear of property developing for a while?
0:47:37 > 0:47:39I'm a bit of a glutton for punishment,
0:47:39 > 0:47:42but I'm going back to what I have always done, which is renovations.
0:47:42 > 0:47:45I've done lots of renovations over 20 years.
0:47:45 > 0:47:50This was the first new-build and, to be quite honest, I don't think I'll be doing another one.
0:48:02 > 0:48:08After her knotweed nightmare, along with the strains of getting planning permission and then the bills,
0:48:08 > 0:48:13you can understand why Margaret might avoid new builds from now on.
0:48:17 > 0:48:21We're back in Warminster, where Tom had bought this shop
0:48:21 > 0:48:26with an upstairs flat at auction for £142,000.
0:48:26 > 0:48:33After a life-changing heart bypass operation, he gave up his sales manager job to become his own boss,
0:48:33 > 0:48:36selling eco-friendly furniture.
0:48:36 > 0:48:38Got myself back on track, went travelling around Spain
0:48:38 > 0:48:42for six months, came back, decided to set up a small business.
0:48:42 > 0:48:46So I've been looking out for something to have a go with.
0:48:46 > 0:48:49So, how has he got on with the property?
0:48:49 > 0:48:55We caught up with him two months later to see what changes have been made on the shop floor.
0:48:58 > 0:49:00And gone is that empty shell.
0:49:00 > 0:49:04The shop has been tastefully decorated with stylish fixtures and
0:49:04 > 0:49:10fittings designed to show off the furniture and accessories on sale.
0:49:10 > 0:49:12There wasn't a lot of work to do with the interior of the shop.
0:49:12 > 0:49:15It was really a bit of a lick of paint.
0:49:17 > 0:49:21It was a matter of putting blinds up on the windows.
0:49:21 > 0:49:27We put some units in to some of the alcoves to display things.
0:49:27 > 0:49:29Apart from that, getting the furniture and
0:49:29 > 0:49:33the accessories have just made the whole thing look pretty good.
0:49:33 > 0:49:36Tom didn't just use his eye for detail on the inside.
0:49:36 > 0:49:41He painted the woodwork outside grey and, although he's happy now,
0:49:41 > 0:49:44the first time round it wasn't dark enough.
0:49:44 > 0:49:48# Don't be afraid of the dark
0:49:48 > 0:49:52# Don't be afraid of the dark... #
0:49:52 > 0:49:57I went back to the local supplier of the paint and got him to add more black.
0:49:57 > 0:50:00Then add some more black, and again.
0:50:00 > 0:50:07Finally, I walked away from the shop and the guy said to me, "Please don't come back and order any more."
0:50:07 > 0:50:09I said, "What's the problem?"
0:50:09 > 0:50:11He said, "Well, I'll never match it."
0:50:11 > 0:50:14He said, "Now we're going to call it Tom's Grey.
0:50:14 > 0:50:19So every time anybody says they like the colour, I tell them to go to the supplier and ask for Tom's Grey.
0:50:19 > 0:50:24Tom's Grey? Hmm, I wonder how much it differs from that sky.
0:50:24 > 0:50:30Upstairs in the flat above the shop, Tom has done another amazing transformation.
0:50:30 > 0:50:36He's really lightened up the rooms and decked the whole place out with chic furniture.
0:50:37 > 0:50:42Well, what do you expect with a whole shop full of stock downstairs?
0:50:42 > 0:50:48The kitchen has been revamped with high-spec units, appliances and worktops.
0:50:48 > 0:50:50But apparently there's no doors.
0:50:50 > 0:50:54I brought in a couple of contractors to help me with this.
0:50:54 > 0:50:58There's quite a bit of work done.
0:50:58 > 0:51:03As you can see from before, we've boarded off the back wall, closed off the serving hatch
0:51:03 > 0:51:10to give them space to put the fridge-freezer and another set of units.
0:51:10 > 0:51:16We've mounted the cooker over the top of the stairs...
0:51:17 > 0:51:20and got my dishwasher,
0:51:20 > 0:51:23and lots of storage for quite a small space.
0:51:23 > 0:51:28We've got a few little details which we're still working on at the moment with the kitchen.
0:51:28 > 0:51:32The floor is an industrial vinyl.
0:51:32 > 0:51:38It's got little metal chips in there which catch the light, which I thought was quite nice.
0:51:38 > 0:51:44And, as you can see at the moment, we haven't got many cupboard doors up there. In fact, none.
0:51:44 > 0:51:46But they've just arrived.
0:51:46 > 0:51:47I'm really pleased with them.
0:51:47 > 0:51:50We've just unwrapped the first one.
0:51:50 > 0:51:54That's going to be the effect of the door.
0:51:54 > 0:51:58So, looking forward to mounting these up here.
0:51:58 > 0:52:00Hopefully, in the next week or so,
0:52:00 > 0:52:06I'll be able to eat out of my kitchen rather than filling myself with takeaways.
0:52:10 > 0:52:15There are a couple of other jobs around the flat still to be done, but nothing major.
0:52:15 > 0:52:18Elsewhere, Tom has transformed the bathroom as well, ripping out that
0:52:18 > 0:52:25old bath and fitting a superb walk-in shower - utilising the space much more effectively.
0:52:25 > 0:52:29As far as the bathroom was concerned,
0:52:29 > 0:52:35there was an interesting issue where the bath seemed to be a couple of inches...
0:52:35 > 0:52:39deeper underneath than it was from the tiled wall.
0:52:39 > 0:52:41I couldn't believe the tiles were so thick.
0:52:41 > 0:52:46So when we took the bath out, we realised that they had studded out quite a bit.
0:52:46 > 0:52:53So we took it right back and put an MDF wall in and tiled on to that for the shower area.
0:52:53 > 0:52:59I gained an inch and a half. It doesn't sound a lot, but in a small space it made the difference.
0:52:59 > 0:53:01So it was quite worthwhile.
0:53:01 > 0:53:06It certainly was. Every inch counts in such a cramped space.
0:53:06 > 0:53:09Although there is a bit of tiling left to do,
0:53:09 > 0:53:13that's nothing compared to how much still has to be done in the garden.
0:53:16 > 0:53:20The garden needs a makeover. But that will be something for the spring.
0:53:20 > 0:53:25The garden hasn't had much attention, but that's because Tom was kept busy in the flat.
0:53:25 > 0:53:30He worked seven days a week, late into the evenings for two months.
0:53:30 > 0:53:33But he did get workmen and friends in to give him a hand.
0:53:33 > 0:53:35I brought in a team for the renovation.
0:53:35 > 0:53:42One guy who was working full-time during the week, he joined me at the end of the day and helped me work
0:53:42 > 0:53:47until eight or nine at night...
0:53:47 > 0:53:51Then I brought in several guys to help on the bathroom and kitchen.
0:53:51 > 0:53:54And electrical work, which is not my forte,
0:53:54 > 0:54:00I've got a good friend who's a very good electrician that's working on things.
0:54:01 > 0:54:05With his team in place, Tom managed to get the shop renovated and fitted.
0:54:05 > 0:54:10But it took longer than expected and the shop's opening was delayed by a few weeks.
0:54:10 > 0:54:13We opened the shop only three days ago.
0:54:13 > 0:54:19So we had a grand opening, very busy, lots of activity.
0:54:19 > 0:54:23A mixture of friends coming in, people from the other shops
0:54:23 > 0:54:27came in to welcome them on board, which was very nice.
0:54:27 > 0:54:30The shop's now operating successfully.
0:54:30 > 0:54:35But what do two local estate agents think of Tom's work so far?
0:54:35 > 0:54:37First impressions, it's beautiful.
0:54:37 > 0:54:39Very stylish, very sleek.
0:54:39 > 0:54:42Nice clean lines throughout. Very, very appealing.
0:54:42 > 0:54:43He's done a really good job.
0:54:43 > 0:54:45Yes, there's a few odds and ends to finish off,
0:54:45 > 0:54:48a bit of decoration, but he's done a really good job.
0:54:49 > 0:54:54I think the redecoration of the property is of a very high standard,
0:54:54 > 0:54:57above what people would expect for this kind of property.
0:54:57 > 0:55:01From what I've seen, the standard of finish is very good.
0:55:01 > 0:55:03It's very attractive, pleasing to the eye.
0:55:03 > 0:55:06It's very neutral. Yes, he's done a very good job.
0:55:06 > 0:55:10So, a glowing report for all Tom's hard graft.
0:55:10 > 0:55:17He paid £142,000 at auction and has spent around £12,000 on the refurbishment.
0:55:17 > 0:55:22What do the experts think that's added to the resale worth of the property?
0:55:22 > 0:55:24I would estimate the value on the current market
0:55:24 > 0:55:29of the whole unit would be in the region of £160,000 to £170,000.
0:55:29 > 0:55:35For resale purposes, as a whole, I would value this property at £185,000.
0:55:35 > 0:55:38Quite a difference, then, in the resale valuations.
0:55:38 > 0:55:42Tom's total spend was £154,000.
0:55:42 > 0:55:49So, those estimates could see him making a pre-tax profit of between £6,000 and £31,000.
0:55:52 > 0:55:54I've not done it to make instant money.
0:55:54 > 0:55:57It's my home and a business to run.
0:55:57 > 0:56:01But it's very pleasing to know that.
0:56:01 > 0:56:09With the lifestyle changes he's made following his heart surgery, Tom is looking ahead to a bright future.
0:56:09 > 0:56:15I spent the last couple years meandering around, trying to keep myself busy.
0:56:15 > 0:56:18It's a great feeling now. You've got a purpose.
0:56:18 > 0:56:22So I'm looking forward to some good sales
0:56:22 > 0:56:24and a happy life in here.
0:56:24 > 0:56:30And after the tough time Tom went through, he certainly deserves that happy life.
0:56:30 > 0:56:36We wish him all the best with his new home and business and health.
0:56:39 > 0:56:43That's all we have time for today, but there'll be plenty more for you next time.
0:56:43 > 0:56:46Join us, why don't you, for more Homes Under The Hammer.
0:56:46 > 0:56:48- We'll see you then. - Goodbye.- Goodbye.
0:57:04 > 0:57:07Subtitles by Red Bee Media Ltd
0:57:07 > 0:57:10E-mail subtitling@bbc.co.uk