0:00:02 > 0:00:05Over the years, we've witnessed the ups and downs of the housing market.
0:00:05 > 0:00:07Whether it's an investment or a home you want,
0:00:07 > 0:00:11you want to make sure there are more ups than downs.
0:00:11 > 0:00:13So make sure you buy your house at the right price.
0:00:13 > 0:00:18One way to do that is visit an auction room and buy your house under the hammer!
0:00:43 > 0:00:47We've all read about the ever-changing property market.
0:00:47 > 0:00:50But doing a deal at auction is one of the simplest processes.
0:00:50 > 0:00:53Hand goes up. Hammer comes down. Bought!
0:00:53 > 0:00:56That's what happened when today's properties were sold.
0:00:57 > 0:01:02Coming up... In Kent, there's a good-sized house that could be pretty APPEALING.
0:01:02 > 0:01:06Wallpaper stripping... Not too much of a problem.
0:01:06 > 0:01:11I find a semi in Luton that's not exactly touchy-feely.
0:01:11 > 0:01:14There is artex slapped on everywhere.
0:01:14 > 0:01:16You can see it all dragging down the walls.
0:01:17 > 0:01:20And in Plymouth, this four-bed terrace
0:01:20 > 0:01:23has potential for more bedrooms.
0:01:23 > 0:01:27That is where you are going to make your money with this property.
0:01:29 > 0:01:31These properties were sold at auction.
0:01:31 > 0:01:35Find out who bought them and what they paid when they went under the hammer.
0:01:35 > 0:01:36It's yours, madam.
0:01:41 > 0:01:46I'm in Crayford, North Kent, 15 miles east of London.
0:01:46 > 0:01:52The town has great commuter links and has had a facelift over the last few years.
0:01:52 > 0:01:56So this is an attractive spot to buy property.
0:01:57 > 0:02:03What do you get for a guide price of £215 to £225,000?
0:02:03 > 0:02:08Well, potentially this. It's a pretty reasonable two-bedroom semi-detached.
0:02:08 > 0:02:12Close to the shops, good transport links. Not bad at all.
0:02:12 > 0:02:17But it gets better, because not only do you get that semi-detached property,
0:02:17 > 0:02:22you get the two-bedroom semi-detached property that's attached to it.
0:02:22 > 0:02:25Now I've got you interested.
0:02:26 > 0:02:29These two semis have been joined together
0:02:29 > 0:02:32to create one large detached house.
0:02:32 > 0:02:34From here, I think it looks wonderful.
0:02:34 > 0:02:38However, on closer inspection, it looks like it could do with new windows
0:02:38 > 0:02:41and maybe a splash of paint.
0:02:41 > 0:02:43DOOR CLANGS
0:02:45 > 0:02:47Not the best of designs. Er, OK...
0:02:47 > 0:02:50If you can get through the door,
0:02:50 > 0:02:52past the meter cupboard... I don't know!
0:02:52 > 0:02:58..into the front living room... Oh, dear, oh, dear!
0:02:58 > 0:03:00This...
0:03:00 > 0:03:04..is a mildew problem. Wow.
0:03:04 > 0:03:08My guess is that there's been some sort of a water leak in the past.
0:03:08 > 0:03:12You can see the joints on the ceiling, the water's been pouring through there.
0:03:12 > 0:03:16It's gone down the walls, it's probably gone under the floors.
0:03:16 > 0:03:18It doesn't smell damp in here.
0:03:18 > 0:03:22The floor has had a chance to dry, but you don't know what damage has been done.
0:03:22 > 0:03:27My guess is, a water tank in the loft has leaked and this has flooded down here.
0:03:27 > 0:03:30But the whole room has flooded.
0:03:30 > 0:03:35I mean, wallpaper stripping... Not too much of a problem.
0:03:36 > 0:03:39I've done my bit to help the restoration!
0:03:39 > 0:03:41But then through into the kitchen,
0:03:41 > 0:03:47you go from mildew disaster into, well, Swedish log cabin!
0:03:47 > 0:03:50Is it a kitchen? Is it a sauna? I don't know! All this woodwork!
0:03:50 > 0:03:55It's dark, it's dingy, and that's not helped by the wood.
0:03:55 > 0:03:59But it's not a bad size. Lots of hidden cupboards and things like that.
0:03:59 > 0:04:03But, realistically, you're looking at taking this out and replacing it.
0:04:03 > 0:04:07But all in all, a very good start. Well, apart from the mildew.
0:04:08 > 0:04:12There are four reception rooms downstairs
0:04:12 > 0:04:17and it looks like the kitchen of one of the old semis is now a bathroom.
0:04:17 > 0:04:20The house will need to be cleared and modernised throughout.
0:04:20 > 0:04:22But for the price, this is a big place,
0:04:22 > 0:04:25so I'm seeing big potential.
0:04:29 > 0:04:31So upstairs and...
0:04:31 > 0:04:36Whoa, whoa, whoa! The damage from the water is even more apparent.
0:04:36 > 0:04:39My guess is that the water tank is actually above me,
0:04:39 > 0:04:45and the ball valve that lets the water in has corroded, maybe even just the washer's gone,
0:04:45 > 0:04:48that's resulted in the tank overflowing,
0:04:48 > 0:04:51flooding the house and causing the damage you can see.
0:04:51 > 0:04:55My concern is the damage you can't see. The ironic thing, of course,
0:04:55 > 0:04:59is that it was all caused, probably, by a 25p washer.
0:04:59 > 0:05:04What have we got? Landing here. Bathroom there. Dark and dingy. Definitely needs to be sorted out.
0:05:04 > 0:05:09Bedroom here. Then it gets very interesting, because...
0:05:10 > 0:05:14..as I mentioned before, this is two properties that are being converted into one.
0:05:14 > 0:05:17What they haven't done well is maximise the space.
0:05:17 > 0:05:21They've knocked down the wall and put corridors through.
0:05:21 > 0:05:24If you're going to do this, you want to create big, open spaces,
0:05:24 > 0:05:28not these tiny little rooms, that don't really work for me.
0:05:28 > 0:05:32However, that does throw up some interesting possibilities.
0:05:35 > 0:05:39It looks as though not enough thought went into the conversion.
0:05:39 > 0:05:43The two original houses were simply joined by some doorways.
0:05:43 > 0:05:47This could be beneficial if the buyer decided to reinstate the two properties -
0:05:47 > 0:05:50a way to maximise resale value.
0:05:50 > 0:05:53Or with a bit of creative thinking and some cash,
0:05:53 > 0:05:58the two floors could be opened up to consolidate some of those smaller spaces.
0:06:01 > 0:06:05It would be three beds upstairs, two large receptions downstairs,
0:06:05 > 0:06:07plus a large modern kitchen.
0:06:07 > 0:06:10So it seems there's great scope.
0:06:10 > 0:06:12And there's another bonus at the back.
0:06:14 > 0:06:18Well, no, I haven't wandered out into a local woodland.
0:06:18 > 0:06:21This is actually the back garden of the property
0:06:21 > 0:06:24and it is an absolutely delight.
0:06:24 > 0:06:27Mature trees, shrubs,
0:06:27 > 0:06:31lots and lots of work gone into creating paved areas, pathways through the trees.
0:06:31 > 0:06:34It is absolutely beautiful.
0:06:34 > 0:06:38If you set about trying to do this, it would take you 100 years
0:06:38 > 0:06:42and probably £20,000 in terms of landscaping fees.
0:06:42 > 0:06:44Real bonus.
0:06:46 > 0:06:52So at what was a guide price of £215 to £225,000 for all this,
0:06:52 > 0:06:55I think it was a real opportunity for someone.
0:06:55 > 0:06:59I asked a local estate agent what he thought.
0:06:59 > 0:07:02My first impressions of the home are,
0:07:02 > 0:07:06very distinctive, nice-looking property from the outside,
0:07:06 > 0:07:08almost cottagey.
0:07:08 > 0:07:13There's some fairly bad mildew and damp round the house.
0:07:13 > 0:07:15The ceilings will probably have to be replaced,
0:07:15 > 0:07:18walls stripped right back to the bare brick again
0:07:18 > 0:07:22and replastered and rendered again.
0:07:22 > 0:07:26I would suggest that the property be divided back into separate homes,
0:07:26 > 0:07:30put a front door on the other part of the house,
0:07:30 > 0:07:35create the walls dividing the house between into two
0:07:35 > 0:07:38and then fully refurbish the house again.
0:07:39 > 0:07:43How much rent could each semi-detached house earn?
0:07:43 > 0:07:48For rental purposes, I would suggest a marketing price of around £850 per calendar month.
0:07:48 > 0:07:53Bearing in mind the guide price of £215 to £225,000,
0:07:53 > 0:07:55what might it sell on for?
0:07:55 > 0:08:00After renovation, each property would be worth approximately £250,000 per property.
0:08:01 > 0:08:06Well, a lot of work to be done, but I think there's potential for big profits with this place.
0:08:06 > 0:08:10The key to that is to turn it back from one property into two.
0:08:10 > 0:08:12You don't know how much water damage has been done,
0:08:12 > 0:08:15but you'll find that out once you rip the place apart.
0:08:15 > 0:08:20Let's see who fancied the opportunity when it went under the hammer.
0:08:23 > 0:08:25Lot 65 is the two properties.
0:08:25 > 0:08:28The big property that should be semis.
0:08:28 > 0:08:31A guide of 215, 220. Is there a bid of 200,000 in the room?
0:08:31 > 0:08:35200 I've got. And five. 205.
0:08:35 > 0:08:37205. And ten is against you, madam.
0:08:37 > 0:08:41210, it's with you again. 215. 215 I've got.
0:08:41 > 0:08:43220 now.
0:08:43 > 0:08:46220 unbid. And 25. 225.
0:08:46 > 0:08:51And 30. 230. And five. 235.
0:08:51 > 0:08:54Still worth it. £235,000.
0:08:54 > 0:08:59232 I've got in time. 234. 234. And six.
0:08:59 > 0:09:02236.
0:09:02 > 0:09:04£234,000 I've got, then.
0:09:04 > 0:09:07Is it going to be sold for the first time?
0:09:07 > 0:09:10Second time at £234,000.
0:09:10 > 0:09:13Third and final time, if you're sure you're all done.
0:09:13 > 0:09:17Well done. It's yours for £234,000.
0:09:20 > 0:09:22For £234,000,
0:09:22 > 0:09:25the successful bidder was Dawn.
0:09:25 > 0:09:29She bought the house with her son, John, and her husband,
0:09:29 > 0:09:32along with John's girlfriend and her parents.
0:09:32 > 0:09:34So it's a real family investment.
0:09:34 > 0:09:39They've bought the property to develop and sell on. All are hoping to make a profit.
0:09:39 > 0:09:43- Dawn, John, lovely to meet you both. - And you.- Congratulations!- Thanks.
0:09:43 > 0:09:46- This is an interesting project, isn't it?!- Just slightly!
0:09:46 > 0:09:52- This is your son, John. - This is my baby.- Your baby! - I had four of these!
0:09:52 > 0:09:53- You're the youngest?- I am.
0:09:53 > 0:09:56What's your involvement, John?
0:09:56 > 0:09:59- I will be doing all the doing-up to the place.- Right.
0:09:59 > 0:10:03It's a good project. Can't wait to get stuck in.
0:10:03 > 0:10:08- What got you into property? - I've been a qualified carpenter for about six, seven years.
0:10:08 > 0:10:13- You're looking at him proudly! - I am very proud of my John. Very proud.
0:10:13 > 0:10:16I'm proud of all my boys! But John most of all.
0:10:16 > 0:10:18Aww! Why?
0:10:18 > 0:10:22Well, John was seriously ill a few years ago.
0:10:22 > 0:10:25- Really?- We've nearly lost John many times.- Really?!- Yes.
0:10:25 > 0:10:28I had acute myeloid leukaemia seven years ago.
0:10:28 > 0:10:32- You had leukaemia? - They gave me an hour to live.
0:10:32 > 0:10:36- What?- They said, "He's got no chance." I went to six stone in three weeks.
0:10:36 > 0:10:37And here you are today,
0:10:37 > 0:10:41- standing, talking, about to embark on a project!- Absolutely!
0:10:41 > 0:10:44- How cool is that?- It's brilliant. Absolutely brilliant.
0:10:44 > 0:10:48Congratulations! So there's more in this than just buying a house.
0:10:48 > 0:10:49BOTH: Yes.
0:10:49 > 0:10:53What's the big picture? Keep it as one house, convert it into two?
0:10:53 > 0:10:59It's going to go back into two. We can make more money that way.
0:10:59 > 0:11:05In terms of converting it into two, given that it was originally two, not too massive a job?
0:11:05 > 0:11:08- It's not too bad. It should be quite easy.- Right.
0:11:08 > 0:11:12- Who's going to do the work? - I've got a couple of people who work alongside me,
0:11:12 > 0:11:16but anyone that I need to pull in, I will do.
0:11:16 > 0:11:18But I'll oversee most of the work.
0:11:18 > 0:11:22- But you're doing most of it. - I'll do most of it myself. - You'll have an electrician.
0:11:22 > 0:11:24We've got to have an electrician.
0:11:24 > 0:11:28My brother's a gasfitter, so he can do the pipe work.
0:11:28 > 0:11:33- Other than that... - And Ian does windows. - Yes, my other brother does windows!
0:11:33 > 0:11:35And how much do you think it's going to cost?
0:11:35 > 0:11:39I originally said 40 to 50,000.
0:11:39 > 0:11:43- Er, but the thing is... - I'm a shopaholic!
0:11:43 > 0:11:47This is it! But we think that there's enough profit in it.
0:11:47 > 0:11:53Anything we come up... If we make a profit, it's a bonus. It's the first one for us.
0:11:53 > 0:11:55Hopefully, we'll make a lot of money.
0:11:55 > 0:11:59I think you will. By going down the splitting-into-two route, most definitely.
0:11:59 > 0:12:03So 50's your maximum ballpark? That's a healthy budget.
0:12:03 > 0:12:06If it goes over, it goes over, but we don't think it will.
0:12:07 > 0:12:12It certainly looks as though John has the wherewithal to tackle this massive project,
0:12:12 > 0:12:15so I think his family are in safe hands.
0:12:17 > 0:12:22- If it's broken, fix it.- That's it. You can put anything right.
0:12:22 > 0:12:26Even at a cost, it doesn't matter. If something breaks, you can fix it.
0:12:26 > 0:12:29- Including yourself. - That's it! I've learnt that.
0:12:29 > 0:12:33My little trip has taught me a lot in life.
0:12:33 > 0:12:36And, er, it's only up from now, hopefully.
0:12:36 > 0:12:42MUSIC: "Fix You" by Coldplay
0:12:42 > 0:12:46# And I will try
0:12:46 > 0:12:48# To fix you #
0:12:49 > 0:12:53- Well, listen, brilliant story. Congratulations.- Thanks.
0:12:53 > 0:12:56Good luck. We look forward to seeing how you get on.
0:12:56 > 0:12:59- Cheers.- Lovely. BOTH: Thanks.
0:13:00 > 0:13:06Well, what a positive and inspirational story all round.
0:13:06 > 0:13:10I'm delighted for Dawn and John that they've taken on this project,
0:13:10 > 0:13:12along with their respective families.
0:13:12 > 0:13:19Lots of work to do, though. I am concerned by the water damage, which they haven't discovered yet.
0:13:19 > 0:13:21But overall, we wish them all the best.
0:13:21 > 0:13:25You can find out how they get on later in the show.
0:13:30 > 0:13:33I'm in Luton, Bedfordshire,
0:13:33 > 0:13:37known for its international airport, the fifth busiest in the country.
0:13:37 > 0:13:41I just hope that our next property can take off, too!
0:13:41 > 0:13:45And here it is! It's a three-bed semi-detached house,
0:13:45 > 0:13:49and the guide just £85,000.
0:13:49 > 0:13:52OK, it might not be all-singing and dancing from the outside,
0:13:52 > 0:13:55but there is a party wall!
0:13:55 > 0:13:57Let's see what it's like inside.
0:13:57 > 0:13:59Fingers crossed that it's a real high-flyer
0:13:59 > 0:14:02and not a Plane Jane!
0:14:03 > 0:14:10So inside... There's quite an interesting use of texture in this place!
0:14:10 > 0:14:13It's fair to say there is artex slapped on everywhere.
0:14:13 > 0:14:15You can see it all dragging down the walls.
0:14:15 > 0:14:17Lots of swirly patterns on the ceiling.
0:14:17 > 0:14:22Whoever takes this on has got to think about skimming over this
0:14:22 > 0:14:24and giving it a much more modern feel.
0:14:24 > 0:14:28Big lounge. Lovely big windows. Bright feeling to it.
0:14:28 > 0:14:29That's fantastic.
0:14:29 > 0:14:32And downstairs there's a bathroom.
0:14:32 > 0:14:36I can only see a sink and a bath. No toilet.
0:14:36 > 0:14:39I'd like to think it could become a three-piece suite.
0:14:39 > 0:14:45Maybe underneath the stairs there's enough room to put a WC. That would open this space up.
0:14:45 > 0:14:48And through here, a good-sized kitchen.
0:14:48 > 0:14:51Not bad at all. Access to the garden.
0:14:51 > 0:14:54It's all very '70s, it's dated, the tiles need ripping off,
0:14:54 > 0:15:01but once you have installed something new, clean and modern, you've got yourself a great house.
0:15:01 > 0:15:03# I've got potential #
0:15:05 > 0:15:08You could definitely make this something special.
0:15:08 > 0:15:10All the rooms offer lovely proportions.
0:15:10 > 0:15:14French doors at the end of the lounge would be a welcome addition.
0:15:14 > 0:15:19Blocking up the door in the kitchen would allow more space for appliances and units.
0:15:21 > 0:15:24So up here, we've got three bedrooms,
0:15:24 > 0:15:28and I'm glad to say there is a toilet!
0:15:28 > 0:15:31And its next-door neighbour is the sink!
0:15:31 > 0:15:35Not very practical to have the sink there, with the wall and a toilet.
0:15:35 > 0:15:39I think what you need to do in this property is, knock this wall down
0:15:39 > 0:15:42and perhaps have this as a shower room
0:15:42 > 0:15:45so you do offer some washing facilities upstairs.
0:15:45 > 0:15:49I think this house will be more functional once you've done that.
0:15:49 > 0:15:54The bedrooms are all good sizes and the garden is fabulous.
0:15:54 > 0:15:56It backs onto a school playing field,
0:15:56 > 0:15:59so is not overlooked by other property.
0:15:59 > 0:16:03That's a big selling point and means a fantastic sense of space.
0:16:03 > 0:16:08When looking to invest, location and transport links are at the top of my list.
0:16:08 > 0:16:11Transport couldn't be better here in Luton.
0:16:11 > 0:16:14There's an excellent fast rail service to London and Brighton.
0:16:14 > 0:16:18The M1 is at the end of the street. Plus, you've got the airport.
0:16:18 > 0:16:22Road, rail and air. Luton has it all.
0:16:23 > 0:16:27Luton Airport employs over 500 people directly
0:16:27 > 0:16:29and around 8,000 indirectly.
0:16:29 > 0:16:33They all need homes, which is great news for investors.
0:16:33 > 0:16:36The airport is a five-minute drive from this place,
0:16:36 > 0:16:39making it perfect for employees there.
0:16:39 > 0:16:42What does the local estate agent make of it?
0:16:44 > 0:16:46It's a good house, actually. Good location.
0:16:46 > 0:16:51Obviously needs a little bit of work inside. Full refurb, I would say.
0:16:51 > 0:16:54Very good saleable area, as well.
0:16:54 > 0:16:59This could be quite a money-spinner. Let's talk figures.
0:16:59 > 0:17:04When renovated, I would say you're probably looking about 145, 150 on the market.
0:17:04 > 0:17:09With the airport so close and many employees seeking accommodation,
0:17:09 > 0:17:12letting has to be a tempting option.
0:17:13 > 0:17:17I would rent this out between 650 and 700 a month.
0:17:18 > 0:17:21So, will the property on Keepers Close be a keeper?
0:17:21 > 0:17:24Personally, I think it's a good one to go for.
0:17:24 > 0:17:28It doesn't require too much work, and the airport and transport links
0:17:28 > 0:17:31mean the rental market is strong in this area.
0:17:31 > 0:17:34Let's see who agreed with me as we go to auction.
0:17:37 > 0:17:41Who wants to give me a start? 90,000?
0:17:41 > 0:17:45If not, you tell me. We'll start there. 70 I've got.
0:17:45 > 0:17:4875. 80,000.
0:17:48 > 0:17:5185?
0:17:51 > 0:17:5390,000. 95.
0:17:53 > 0:17:56100,000? He knows the value. 100 I've got.
0:17:56 > 0:18:00105? 110. 115.
0:18:00 > 0:18:02115. New place. 116.
0:18:02 > 0:18:06117. 118? 118, somebody want to come in?
0:18:06 > 0:18:10118. Back in. 119. 120?
0:18:10 > 0:18:13- 120. 121.- 120 and a half.
0:18:13 > 0:18:16120 and a half. 121?
0:18:16 > 0:18:19You might have done it. It's with you. 120,500.
0:18:19 > 0:18:26It's going to the gentleman at the front. Anybody else? 120,500 for the first...
0:18:26 > 0:18:28120,500 for the second...
0:18:28 > 0:18:32120,500 for the third and final time.
0:18:32 > 0:18:36All done. Sold. 120,500. Well bought.
0:18:38 > 0:18:43That successful bid of 120,500
0:18:43 > 0:18:45came from Matt and his partner, Jane.
0:18:45 > 0:18:49Matt owned a printing business which closed due to the recession,
0:18:49 > 0:18:53so he's now moving into property developing.
0:18:53 > 0:18:55I met the couple back at the house
0:18:55 > 0:18:59to hear their thoughts on their first auction purchase.
0:18:59 > 0:19:01Guys, congratulations.
0:19:01 > 0:19:05- You paid 120,000 AND £500! - Correct.- Let's not forget that!- No.
0:19:05 > 0:19:08- Happy with the price?- It went a little bit over what I'd intended.
0:19:08 > 0:19:12I was going to stop at 120, but it got so close
0:19:12 > 0:19:16I thought I'd give it the extra 500 and I ended up getting it.
0:19:16 > 0:19:19Why do you guys want to buy a house?
0:19:19 > 0:19:24I need to do something, to be frank. Our business, I've had to wind up in the summer.
0:19:24 > 0:19:26I've been looking to do other things.
0:19:26 > 0:19:31Unfortunately, it's a difficult age to change career.
0:19:31 > 0:19:34I'd always enjoyed property and DIY,
0:19:34 > 0:19:39so I thought it'd be a good chance to combine the two and, hopefully, earn a living.
0:19:39 > 0:19:42Is this going to be a new career for you?
0:19:42 > 0:19:47I've got a couple of properties, and what with Jane's, that's three that we own.
0:19:47 > 0:19:50So with this one, it's a good one to add to the portfolio
0:19:50 > 0:19:54and, hopefully, take things on from there and expand.
0:19:54 > 0:19:57Is this going to keep him busy, Jane?
0:19:57 > 0:19:59He's great at this sort of stuff.
0:19:59 > 0:20:02He's great at the kitchen stuff and fitting everything.
0:20:02 > 0:20:05He can do it all himself, very skilled.
0:20:05 > 0:20:09I'm going to give a hand with the decoration, the painting.
0:20:10 > 0:20:12Matt's obviously keen to get started.
0:20:12 > 0:20:15But if developing is to be his new career,
0:20:15 > 0:20:18he'll need to keep on top of the figures.
0:20:18 > 0:20:22How are you going to go about it? Let's start off with your budget.
0:20:22 > 0:20:25My budget, hopefully, keep it to under ten.
0:20:25 > 0:20:28More eight to 9,000.
0:20:28 > 0:20:33We've got a major expenditure on the two bathrooms and the kitchen.
0:20:33 > 0:20:38Apart from that, it's a sound property. It's bricks, mortar and a tiled roof,
0:20:38 > 0:20:41so, hopefully, we can't go too far wrong.
0:20:41 > 0:20:45I don't want to skimp. I want to make it look nice and get some good tenants.
0:20:45 > 0:20:48You are going to rent this out. No chance of putting it up for sale?
0:20:48 > 0:20:53Never say never. But I think we're going to rent it.
0:20:53 > 0:20:58With such strong transport links, I'm sure they'll have no trouble renting this out.
0:20:58 > 0:21:01But there's work to be done first.
0:21:01 > 0:21:05- What sort of changes are you planning on making? - There's some interesting features!
0:21:05 > 0:21:09Gold paint around some of the, er...
0:21:09 > 0:21:12- I don't know what you call those! - Yes! The picture rails!
0:21:12 > 0:21:15- That's got to come off! - That'll be coming off.
0:21:15 > 0:21:18I think the, erm, the artex paper
0:21:18 > 0:21:23in the hall and stairs, is not... I think we'll just paint over that.
0:21:23 > 0:21:28We'll have a clean, contemporary look. Neutral colours.
0:21:28 > 0:21:32Just a nice, clean, fresh, practical look for a family.
0:21:32 > 0:21:35How long do you think it'll take you to do the work?
0:21:35 > 0:21:39Of course, luckily I can go full time with it now,
0:21:39 > 0:21:42so, hopefully, within two months.
0:21:42 > 0:21:46Are you really going to be here every day, doing all the work?
0:21:46 > 0:21:50- Er... Apart from bank holidays! - Jane's laughing! "Yes!"
0:21:50 > 0:21:55- Hopefully, I'll get a round of golf some time!- Have yourself some leisure time.
0:21:55 > 0:21:58I've no doubt Matt will give this his best shot,
0:21:58 > 0:22:00but he'll have to keep his eye on the ball,
0:22:00 > 0:22:03especially if he's to complete this in just two months
0:22:03 > 0:22:05for less than £10,000.
0:22:05 > 0:22:10But I need to know, how well do this couple work together?
0:22:10 > 0:22:12As long as Jane does what I say, we'll have no problem!
0:22:12 > 0:22:16- That was a nervous laugh! - That was a gallows laugh!
0:22:16 > 0:22:20- Er, I'll do as I'm told for a short while.- Five minutes.
0:22:20 > 0:22:25We work really well together. Matt's got a good business brain and he's very practical,
0:22:25 > 0:22:31and I like the design bit. I'll roll up my sleeves, so we actually make a good team.
0:22:33 > 0:22:35# You and me
0:22:35 > 0:22:38# All that we need is each other
0:22:38 > 0:22:41# That's why we
0:22:41 > 0:22:43# Make a good you and me #
0:22:43 > 0:22:47This property purchase could signal a career change for Matt.
0:22:47 > 0:22:51And with Jane by his side, I'm sure he'll make a huge success of this.
0:22:51 > 0:22:55But will he be able to turn this around in just two months?
0:22:55 > 0:23:00Having run a business, he'll be used to deadlines, but will he meet this one?
0:23:00 > 0:23:03You can find out if he does it later in the programme.
0:23:04 > 0:23:07Coming up... In Plymouth, a four-bed terrace
0:23:07 > 0:23:10where you've got to be careful what you touch.
0:23:10 > 0:23:14Oops. Oh, dear. Literally falling to pieces!
0:23:16 > 0:23:20Back in Luton... How did Matt and Jane get on with their semi?
0:23:20 > 0:23:24Absolutely rank. It was actually disgusting.
0:23:25 > 0:23:30But first, were things as bad as they looked in Kent?
0:23:30 > 0:23:34I put a crowbar onto a bit of skirting and it went through the wall.
0:23:38 > 0:23:40It's back to Crayford in Kent now,
0:23:40 > 0:23:43where earlier, we met John and his mother Dawn.
0:23:43 > 0:23:49They bought this rundown, decrepit cottage for £234,000.
0:23:49 > 0:23:53It was originally two semis that had been knocked together to make one.
0:23:53 > 0:23:57But they plan to convert it back into two separate dwellings.
0:23:57 > 0:24:00That was a tough job for first-time developer John.
0:24:00 > 0:24:05But he's used to challenges, after overcoming leukaemia a few years ago.
0:24:05 > 0:24:07They gave me an hour to live.
0:24:07 > 0:24:11- What?- They said, "He's got no chance." I went to six stone in three weeks.
0:24:11 > 0:24:12And here you are today,
0:24:12 > 0:24:16- standing, talking, about to embark on a project!- Absolutely!
0:24:16 > 0:24:18- How cool is that?- It's brilliant.
0:24:18 > 0:24:22So this was one project that was much more about rebuilding a life
0:24:22 > 0:24:25than a house.
0:24:43 > 0:24:47It looks like it's been a fantastic total transformation.
0:24:47 > 0:24:52For John and Dawn, it had soon become clear that that was what they had to do.
0:24:55 > 0:25:00It was in such a state that it needed everything taken out and starting from scratch.
0:25:00 > 0:25:03All the internal walls came out from upstairs.
0:25:03 > 0:25:05Where there was so much damp,
0:25:05 > 0:25:10all I did was put a crowbar onto a bit of skirting and it went through the wall.
0:25:10 > 0:25:14They were concrete walls, as well. But it was shot to pieces with all the water.
0:25:14 > 0:25:18They all had to come out. We were left with a big open space.
0:25:18 > 0:25:23From that, we re-laid the walls. They've gone back in the same place they were.
0:25:23 > 0:25:27We've replaced all the ceiling rafters, all new boards in there.
0:25:27 > 0:25:31We've insulated all the walls. New plumbing, new electrics.
0:25:31 > 0:25:35Fully decorated, obviously. Inside and out.
0:25:35 > 0:25:38Everything that needed doing has been done.
0:25:38 > 0:25:42It took 18 to 20 skips to cart away all the rubble.
0:25:42 > 0:25:44But it looks as though it was well worth it.
0:25:44 > 0:25:47With the house returned back into two semis,
0:25:47 > 0:25:53John and Dawn have made the layout of number 22 a mirror-image of number 24.
0:25:53 > 0:25:56It may be a copy, but it's a remarkable renovation nevertheless.
0:25:56 > 0:25:59# Just the two of us
0:25:59 > 0:26:02# We can make it if we try
0:26:02 > 0:26:04# Just the two of us
0:26:04 > 0:26:06# Just the two of us #
0:26:06 > 0:26:10This is the bathroom that we've done. We've put in a pea-style bath,
0:26:10 > 0:26:16with tiles all round this part, with a nice strip of glass tiles.
0:26:16 > 0:26:20We've carried it on through the floor to make a feature.
0:26:20 > 0:26:22We've kept everything very neutral
0:26:22 > 0:26:27so that anyone that moves in can dress it to their design
0:26:27 > 0:26:32and put their own touches to it with their colour schemes.
0:26:32 > 0:26:34So while Dawn dealt with the design,
0:26:34 > 0:26:38John faced up to the structural problems.
0:26:38 > 0:26:40The problem we had in this house was,
0:26:40 > 0:26:45we have a pillar on the opposite side of the kitchen, it mirrors this one,
0:26:45 > 0:26:49and we wanted a nice flat wall to put the kitchen units on,
0:26:49 > 0:26:53and to do that, I've housed it inside a cupboard.
0:26:53 > 0:26:56We did have drawings made up to put new steel in,
0:26:56 > 0:26:59but the council wouldn't let us do it
0:26:59 > 0:27:02because it was going to go through the party wall.
0:27:02 > 0:27:06So to get over that problem, so the kitchen's easier on the eye,
0:27:06 > 0:27:10I've just housed it in a cupboard and it looks a lot better.
0:27:10 > 0:27:14It's that attention to detail that makes John and Dawn's renovation
0:27:14 > 0:27:17such a top-notch product.
0:27:18 > 0:27:23While the interiors are identical, the back gardens have been split and tidied up
0:27:23 > 0:27:26and the wonderful character revealed.
0:27:27 > 0:27:29With the help of family members,
0:27:29 > 0:27:33the pair only overran their four-month schedule by a few weeks.
0:27:33 > 0:27:38And for this standard of renovation, that's pretty good going.
0:27:38 > 0:27:42But in the end, this is principally a mother-and-son team.
0:27:42 > 0:27:45It has been a lot of hard work, but a lot of fun.
0:27:45 > 0:27:49'We work very well together. We don't argue.
0:27:49 > 0:27:52'We do joint decisions on everything,
0:27:52 > 0:27:58'on design, planning, what we're putting in, on costs.'
0:27:58 > 0:28:02We have done double the work and I think we've got double bubble out of it.
0:28:04 > 0:28:06They did start out with a healthy budget of £50,000,
0:28:06 > 0:28:11but all the delays bumped that up to 76,000.
0:28:11 > 0:28:14So added to the purchase price of £234,000,
0:28:14 > 0:28:18their total spend is now £310,000.
0:28:22 > 0:28:26But for John, this renovation also marks the start
0:28:26 > 0:28:28of a brand-new chapter in his life.
0:28:28 > 0:28:32My illness was eight years ago now.
0:28:32 > 0:28:37It feels to me like it didn't even happen, it was a dream.
0:28:37 > 0:28:40It's amazing that I'm to the health I am now.
0:28:40 > 0:28:44And to have a business running, doing houses like this,
0:28:44 > 0:28:47from eight years ago, seeing me in my deathbed,
0:28:47 > 0:28:51it's amazing to be here now.
0:28:51 > 0:28:53One word is "lucky".
0:28:53 > 0:28:57I've got the trust that my parents have given me,
0:28:57 > 0:28:59knowing that I could complete the job.
0:28:59 > 0:29:02Mum's always had faith in me to do and produce,
0:29:02 > 0:29:07and it's worked out well and, hopefully, we can do some more.
0:29:11 > 0:29:13Well, hopefully they can.
0:29:13 > 0:29:16With their total outlay of around £310,000,
0:29:16 > 0:29:22it's time to find out what two local property experts think of their handiwork.
0:29:22 > 0:29:25Having looked round both, absolutely fantastic finish.
0:29:25 > 0:29:29Really, really good condition. Ideal for buyers coming to see them.
0:29:31 > 0:29:34Both kitchens have got a lovely spacious feel to them,
0:29:34 > 0:29:40ideal for a kitchen-dining room, and backing onto two really nice secluded gardens.
0:29:40 > 0:29:44I think the developer has really put his heart and soul into this.
0:29:44 > 0:29:49I'm pretty sure that when anybody comes into this house, they will get good feelings
0:29:49 > 0:29:52and either buy it or rent it very quickly.
0:29:52 > 0:29:54I'm pretty sure these will go fast.
0:29:54 > 0:29:59You can see that the developers have put a lot of time and effort into it,
0:29:59 > 0:30:02which shows through with the quality of the finish,
0:30:02 > 0:30:04and should achieve the best possible interest.
0:30:04 > 0:30:08John and Dawn plan to sell the houses.
0:30:08 > 0:30:13Bearing in mind that they have invested a total of around £310,000,
0:30:13 > 0:30:15what could resale achieve?
0:30:15 > 0:30:19The first would achieve slightly more with the benefit of parking.
0:30:19 > 0:30:23We'll put that at a price in the region of £205,000.
0:30:23 > 0:30:29The second, although has no parking, would still achieve relatively close at £200,000.
0:30:29 > 0:30:35The one with the parking, I feel, will go for £205,000.
0:30:35 > 0:30:38The one without the parking, probably £200,000.
0:30:38 > 0:30:43Those two possible sale valuations total £405,000,
0:30:43 > 0:30:49which could give the duo a pre-tax profit of £95,000.
0:30:49 > 0:30:51But Dawn thinks it might be more.
0:30:51 > 0:30:54This is entirely brand new, totally unique,
0:30:54 > 0:30:58and I think they warrant at least 215.
0:30:58 > 0:31:01And that's what I hope we get.
0:31:01 > 0:31:04Judging by this impressive renovation,
0:31:04 > 0:31:07I reckon they might just get it.
0:31:14 > 0:31:17Today, I'm on the South Devon coast in Plymouth.
0:31:17 > 0:31:21This harbour city is one of the biggest naval ports in Europe
0:31:21 > 0:31:27and has a popular university with a large student population.
0:31:28 > 0:31:30Today, I'm in student central!
0:31:30 > 0:31:33It's an area known as Greenbank,
0:31:33 > 0:31:36and it really couldn't be better located for the university
0:31:36 > 0:31:38and the harbour-side bars.
0:31:38 > 0:31:41I'm here to see a three-storey mid-terrace,
0:31:41 > 0:31:44at a guide price of £90 to £110,000.
0:31:44 > 0:31:48But rather intriguingly, the catalogue description says
0:31:48 > 0:31:51it has two, or potentially four, bedrooms.
0:31:51 > 0:31:57Well, only one way to unearth the mystery, and that's to go inside.
0:32:01 > 0:32:05The houses on this street remind me of fishermen's cottages
0:32:05 > 0:32:08and they look very attractive in the sunshine.
0:32:08 > 0:32:10Parking round here, however, is a nightmare
0:32:10 > 0:32:13and definitely something to bear in mind.
0:32:17 > 0:32:22I happen to know that the previous occupant lived in this property for 70 years,
0:32:22 > 0:32:25so it may well be that it hasn't had a lot of work done on it.
0:32:25 > 0:32:29As soon as you walk through the door, you get that impression.
0:32:29 > 0:32:32It's very tired and dated.
0:32:32 > 0:32:38Actually, talking about dates, sometimes you can get a clue as to when the last work was done
0:32:38 > 0:32:43by looking underneath the carpets, because people often put newspaper down.
0:32:43 > 0:32:49And this one, it's actually The News from Adelaide, Australia,
0:32:49 > 0:32:52dated July 29, 1983.
0:32:52 > 0:32:57What an intriguing thing. Why is there a newspaper from Australia under there?
0:32:57 > 0:32:591983 is the last time that was touched.
0:32:59 > 0:33:04And I would hazard a guess that that's pretty much the same for most of this property.
0:33:04 > 0:33:07It's nice it's got an open fire,
0:33:07 > 0:33:11but something tells me this is one of those properties...
0:33:11 > 0:33:14..where you have to spend some money.
0:33:14 > 0:33:17And this is only the beginning.
0:33:17 > 0:33:22The back room, which would make a good-sized bedroom, takes you even further back in time
0:33:22 > 0:33:25with built-in cupboards and original windows.
0:33:25 > 0:33:30But it's not the features that catch my eye here, it's the damp on the walls,
0:33:30 > 0:33:35the cracks in the ceiling and the poor condition of, well, everything.
0:33:35 > 0:33:40The kitchen is a shrine to 1970s wood cladding.
0:33:40 > 0:33:44The thought that more problems could lurk behind there fills me with horror.
0:33:44 > 0:33:48So up onto the first floor and, well, this is a bathroom.
0:33:48 > 0:33:52Well, I say bathroom, it's not, it's a shower and a sink and no loo.
0:33:52 > 0:33:54I don't know what is going on there.
0:33:54 > 0:33:59One of the things you'd have to do if you were renting this out, you have to have enough toilets.
0:33:59 > 0:34:03Frankly, I haven't found any yet!
0:34:03 > 0:34:06Up here, two good-sized bedrooms, one there,
0:34:06 > 0:34:09and then through to the front where you've got an amazing room!
0:34:09 > 0:34:12I mean, it's tired and falling to pieces,
0:34:12 > 0:34:14judging by this...
0:34:14 > 0:34:18Oops. Oh, dear. Literally falling to pieces!
0:34:18 > 0:34:21But there's something to work with here.
0:34:21 > 0:34:24# You walk by
0:34:24 > 0:34:25# And I
0:34:25 > 0:34:28# Fall to pieces #
0:34:28 > 0:34:32Crumbling walls aside, I still haven't seen a loo.
0:34:32 > 0:34:37Also, the auction catalogue stated that there are potentially four bedrooms here.
0:34:37 > 0:34:44I've found two on the first floor, so not counting the living room downstairs,
0:34:44 > 0:34:46there should still be two more.
0:34:46 > 0:34:49Well, up onto the top floor
0:34:49 > 0:34:54and the mystery of those two elusive rooms is finally solved.
0:34:54 > 0:34:56Not much head height.
0:34:56 > 0:34:59And they are in a right old state, that one especially.
0:34:59 > 0:35:02This one here, less so. But loads of character.
0:35:02 > 0:35:07I love attic rooms in general. And they were originally part of the house.
0:35:07 > 0:35:10So there you go. Five bedrooms on three floors.
0:35:10 > 0:35:14We're now into the realms of HMO - House of Multiple Occupation.
0:35:14 > 0:35:17But that is where you'll make your money with this property.
0:35:17 > 0:35:21Perfect for letting to students. Somebody's been doing home brew.
0:35:21 > 0:35:27For me, the idea of what to do with this place has finally distilled itself.
0:35:28 > 0:35:31Despite appearances, there is scope here.
0:35:31 > 0:35:34This house could have up to five bedrooms.
0:35:34 > 0:35:36Perfect for a student let.
0:35:36 > 0:35:40And it has one more trick up its sleeve.
0:35:41 > 0:35:45And what does every student want at the end of the day?
0:35:45 > 0:35:49Somewhere to study? I don't think so!
0:35:49 > 0:35:51It's a place to relax with friends,
0:35:51 > 0:35:55talk about the lectures of the day, life in general,
0:35:55 > 0:35:58and this roof terrace is perfect for that.
0:35:58 > 0:36:01Not only that, it's got the view of the sea.
0:36:01 > 0:36:03What an added bonus!
0:36:03 > 0:36:05However, it's not all bonuses.
0:36:05 > 0:36:11I've finally found the loo, but it's outside at the back. Brrr!
0:36:12 > 0:36:15# Shaking all over! #
0:36:15 > 0:36:18This'll need to be added to the list with everything else,
0:36:18 > 0:36:21especially to comply with HMO regulations,
0:36:21 > 0:36:25which will require extra bathroom and loo facilities.
0:36:25 > 0:36:29But remember, this house, which had a guide price of 90 to 110,000,
0:36:29 > 0:36:32could have five bedrooms on its three floors.
0:36:32 > 0:36:35That could mean a healthy rental return.
0:36:35 > 0:36:42I asked the auctioneer who sold it to do some research on this possible student let.
0:36:45 > 0:36:49If we assume that the walls and the roof are OK,
0:36:49 > 0:36:51it's just about everything else needs doing.
0:36:51 > 0:36:55The basic amount needed to bring it up to some form of semblance,
0:36:55 > 0:36:59I think, is about £30-35,000.
0:36:59 > 0:37:02I did expect a fairly high renovation spend.
0:37:02 > 0:37:05But how many bedrooms could be squeezed in?
0:37:05 > 0:37:10To have five bedrooms in here is really quite straightforward.
0:37:10 > 0:37:14The trick will be, if the new owner wants to get a sixth bedroom,
0:37:14 > 0:37:18to somehow get some more sanitation in the building.
0:37:18 > 0:37:22Six rooms - you've got to have two showers and loos.
0:37:22 > 0:37:26Five - you could just about get away with one.
0:37:26 > 0:37:28So possibly six bedrooms.
0:37:28 > 0:37:31How much weekly rent could each earn?
0:37:31 > 0:37:35For a decent-sized room, you'll get £80,
0:37:35 > 0:37:39maybe 85 if it had broadband and a few toys.
0:37:39 > 0:37:45Whoa. For a 44-week academic year, that's well over £17,000 annual rent.
0:37:45 > 0:37:49How about if it was sold as a single private house?
0:37:49 > 0:37:53As just an ordinary house, erm,
0:37:53 > 0:37:58done up very nicely, it could be worth £135-145,000.
0:37:58 > 0:38:02Well, the house obviously needs quite a lot of sorting out.
0:38:02 > 0:38:05I think it would be worth the investment.
0:38:05 > 0:38:08It's got "student let" written all over it.
0:38:08 > 0:38:11And in this case, I think that could bring in serious money.
0:38:11 > 0:38:16Let's see which bright spark spotted this one at the auction.
0:38:19 > 0:38:23So a three-storey property.
0:38:23 > 0:38:28We've got two phone bidders. It ought to be 100 straight in.
0:38:28 > 0:38:32One. And 101, do I? One I've got. At one.
0:38:32 > 0:38:36102. 103? 103. 104.
0:38:36 > 0:38:39105? 105. 106?
0:38:39 > 0:38:43At... 107. 107. 108?
0:38:43 > 0:38:46At 108. At 108 once, then. You're both out. 109.
0:38:46 > 0:38:50110. 111. 112!
0:38:50 > 0:38:51113.
0:38:51 > 0:38:57114. And 15. And 16.
0:38:57 > 0:38:58And 17.
0:38:58 > 0:39:02118. 118. 119. 120.
0:39:02 > 0:39:05121. 122. 122.
0:39:05 > 0:39:08123. Half.
0:39:08 > 0:39:10125?
0:39:10 > 0:39:14125. What's a little stamp duty between friends?
0:39:14 > 0:39:18At 125 and a half. 125. 126.
0:39:18 > 0:39:21And a half! 127.
0:39:21 > 0:39:23127 and a half. 128.
0:39:23 > 0:39:25128 and a half.
0:39:25 > 0:39:28130. At 130. 130 and a half.
0:39:28 > 0:39:32131? 131 and a half.
0:39:32 > 0:39:37132. 132 and a half. "Not yet", she says. 133.
0:39:37 > 0:39:42133? 133 and a half? 134.
0:39:42 > 0:39:44135.
0:39:44 > 0:39:48136. 136 and a half. The same, if you'd like it, sir. 137.
0:39:48 > 0:39:52On my left it is. 137 twice. Here we go.
0:39:52 > 0:39:58At 137, I'll look up the line. At 137, it's all done and finished.
0:39:58 > 0:40:01Sir, yours. 137.
0:40:03 > 0:40:06For £137,000,
0:40:06 > 0:40:09the successful bidder was builder Graham,
0:40:09 > 0:40:11who's Plymouth born and bred.
0:40:11 > 0:40:15He bought the house to add to his growing buy-to-let portfolio.
0:40:15 > 0:40:20He already owns two properties in the area, which are student lets.
0:40:21 > 0:40:23Graham, lovely to meet you. Congratulations.
0:40:23 > 0:40:26What work are you going to carry out on the property?
0:40:26 > 0:40:30Literally from head to toe, every room is going to be gutted.
0:40:30 > 0:40:33It's all going to be replastered, reskimmed.
0:40:33 > 0:40:37There's going to be a new kitchen fitted.
0:40:37 > 0:40:39A dormer to be added at the top.
0:40:39 > 0:40:43Fire doors. There's going to be two bathrooms put in, two shower rooms.
0:40:43 > 0:40:45Double glazed.
0:40:45 > 0:40:49Finish of the central heating and it'll be completely rewired.
0:40:49 > 0:40:52- Where are the shower rooms going? - In the bathroom,
0:40:52 > 0:40:55- I'm hoping to split it completely down the middle.- Oh!
0:40:55 > 0:40:59Have a passageway in the middle and probably put a window at the end
0:40:59 > 0:41:01to give extra light into the hall.
0:41:01 > 0:41:06- Keeping it pretty much where it is, but splitting it in two?- Yes.
0:41:06 > 0:41:09Graham hopes to get everything done for 25,000.
0:41:09 > 0:41:12To help save on costs, he'll be doing the work himself,
0:41:12 > 0:41:15along with his usual team of builders.
0:41:16 > 0:41:23By offering all mod-cons, he can to ensure that the place is done to the highest grade-A standards
0:41:23 > 0:41:25set by the university.
0:41:25 > 0:41:31Modern furniture. Double beds. Broadband in each room.
0:41:31 > 0:41:33Nice fitted kitchen.
0:41:33 > 0:41:36Basically, all modernised.
0:41:36 > 0:41:38Broadband and modern furniture, eh?
0:41:38 > 0:41:41How things have changed since I was a student!
0:41:41 > 0:41:45But will he have everything done in time to get it rented out
0:41:45 > 0:41:48before the new academic year in nine months?
0:41:48 > 0:41:51I've got it rented already, last night.
0:41:51 > 0:41:54- Sorry?- I rented it last night.- How?
0:41:54 > 0:41:58I saw some students and took them to one of my other rented properties,
0:41:58 > 0:42:02then I was able to take them to another property and they could see the standard.
0:42:02 > 0:42:06- Then I brought them here after and they took it.- Wow!
0:42:06 > 0:42:08- So, they took it in this state?- Yes.
0:42:08 > 0:42:12On the assumption that by the time they come to rent in it September...
0:42:12 > 0:42:16- So you've got nine months to sort it.- Yes.
0:42:16 > 0:42:19- That's nice to know before you start the work!- Yes.
0:42:19 > 0:42:21Congratulations. Good luck with it all.
0:42:21 > 0:42:25- Thanks.- Look forward to seeing how you get on!
0:42:26 > 0:42:29I think Graham's got himself a great property here.
0:42:29 > 0:42:32Lots of work to do to get it sorted out.
0:42:32 > 0:42:36I hope he doesn't uncover too many nasties in the process.
0:42:36 > 0:42:41But you can find out what A-grade student accommodation looks like
0:42:41 > 0:42:43later in the show. Hopefully!
0:42:46 > 0:42:51Now, we always hope that our buyers have set themselves realistic timescales and budgets.
0:42:51 > 0:42:56There's only one way to find out and that's to catch up with them after all the hard work.
0:42:58 > 0:43:02Earlier, we were in Luton where we met Matt and Jane.
0:43:02 > 0:43:05They'd bought this dated, rundown, three-bed semi
0:43:05 > 0:43:09for £120,500.
0:43:09 > 0:43:11Matt previously ran a printing business,
0:43:11 > 0:43:14but now plans to start property developing full time.
0:43:14 > 0:43:19He already had clear ideas about delegating the work.
0:43:19 > 0:43:22As long as Jane does what I say, we'll have no problem!
0:43:22 > 0:43:25- That was a nervous laugh! - That was a gallows laugh!
0:43:25 > 0:43:31- Er, I'll do as I'm told for a short while.- Five minutes. - We work really well together.
0:43:32 > 0:43:35Just as well, by the sounds of it!
0:43:36 > 0:43:42Six months later, the house certainly looks neater and tidier on the outside.
0:43:42 > 0:43:45And it's great to see that Matt and Jane
0:43:45 > 0:43:48are still happily working together!
0:43:49 > 0:43:52What it was like before was absolutely rank!
0:43:52 > 0:43:54It was actually disgusting.
0:43:54 > 0:43:58There was rubbish everywhere. The walls were dirty.
0:43:58 > 0:44:00Everything was filthy,
0:44:00 > 0:44:05completely outdated, dirty, unkempt and unloved.
0:44:08 > 0:44:11They've definitely put some love back into this house.
0:44:11 > 0:44:14The living room is freshly decorated
0:44:14 > 0:44:18and that downstairs bathroom has been replaced with a new suite and loo.
0:44:23 > 0:44:27Best of all, there's a stylish new kitchen.
0:44:31 > 0:44:36But the most significant change is upstairs.
0:44:36 > 0:44:39If you remember originally, there was two separate rooms.
0:44:39 > 0:44:42This is one room, which held the WC and nothing else.
0:44:42 > 0:44:48There was a dividing wall and then just a wash basin, which is quite a strange design.
0:44:48 > 0:44:51So I decided to fill this door in, open up the bathroom
0:44:51 > 0:44:55and put a quadrant shower in with a basin.
0:44:55 > 0:44:58It's fitted in, I think, quite well.
0:44:58 > 0:45:03I think the hardest job, personally, was the tiling.
0:45:03 > 0:45:05I found that bit painfully slow.
0:45:05 > 0:45:08There was a learning curve. I haven't done any for years.
0:45:08 > 0:45:12It took a while to get into it. Once I got into it, it wasn't bad.
0:45:12 > 0:45:15But I never want to see a tile again for another six months!
0:45:15 > 0:45:18And Matt's skills didn't end there.
0:45:18 > 0:45:20He's replastered the whole house
0:45:20 > 0:45:25and installed and plumbed in the new bathrooms and the kitchen.
0:45:27 > 0:45:29With the electrics rewired by professionals,
0:45:29 > 0:45:32that left Jane to help with the colour scheme and design.
0:45:32 > 0:45:36So teamwork has definitely paid off in this renovation.
0:45:36 > 0:45:41But I reckon Matt has had a little difficulty adapting to his new working lifestyle.
0:45:41 > 0:45:47There's been lonely times. I'm not used to a working environment by myself for most of the day.
0:45:47 > 0:45:51So it's a little bit of a learning curve,
0:45:51 > 0:45:55to learn how to just occupy myself as I work.
0:45:55 > 0:45:59I do miss actually working alongside other people.
0:45:59 > 0:46:02# Lonely days
0:46:02 > 0:46:05# Lonely nights
0:46:05 > 0:46:08# Where would I be without my woman? #
0:46:08 > 0:46:11I think Matt's found this a great challenge.
0:46:11 > 0:46:15He's shown a lot of self-discipline, particularly in the early days
0:46:15 > 0:46:18when it was freezing, the house was horrible, there was no heating,
0:46:18 > 0:46:20it was lonely, there was no electrics,
0:46:20 > 0:46:22to where it is today.
0:46:22 > 0:46:26I'm very proud of him. He should be very proud of himself.
0:46:26 > 0:46:29It's a fabulous achievement for him.
0:46:29 > 0:46:34I think Jane's right. Matt really has rejuvenated this rundown property.
0:46:34 > 0:46:37He deserves to take great pride in what he's achieved here.
0:46:37 > 0:46:41But as the job slowed down from the original two-month schedule to six months,
0:46:41 > 0:46:44did the budget take a hit, too?
0:46:44 > 0:46:47I hoped to keep it under £11,000.
0:46:47 > 0:46:50I think I've just about come under £9,000.
0:46:50 > 0:46:53So that's quite a good result.
0:46:54 > 0:46:58I'd say so. Roughly two grand under budget.
0:46:58 > 0:47:02So on top of the purchase price of £120,500,
0:47:02 > 0:47:07that would take his spend to just below £130,000.
0:47:07 > 0:47:09Is it time to cash in on that investment?
0:47:09 > 0:47:12Originally, I was going to rent it out,
0:47:12 > 0:47:15but I think now I'm more prone to try and put it on the market
0:47:15 > 0:47:18to see what I can raise to go on to the next project.
0:47:26 > 0:47:31Hopefully, Matt's work will show a good enough return to move on.
0:47:31 > 0:47:36Let's hear what two local estate agents think of this renovation.
0:47:37 > 0:47:41I like the way he's finished the property.
0:47:41 > 0:47:44Clean lines and neutral colours will always appeal to a buyer.
0:47:44 > 0:47:48Nice fitted kitchen, fitted bathroom, as well. Very nice.
0:47:48 > 0:47:53Spacious accommodation. Very nicely refurbished.
0:47:53 > 0:47:55Nice setting, in front of the green,
0:47:55 > 0:47:58and the nice outlook to the rear over the field.
0:47:58 > 0:48:02The sanitary ware is very nice. And a nice fitted kitchen.
0:48:02 > 0:48:04I like the off-road parking.
0:48:04 > 0:48:08They don't all have that in the area. It's mainly street parking.
0:48:08 > 0:48:12Well, it seems to tick all the right boxes.
0:48:12 > 0:48:17But remember, Matt and Jane's total outlay here was just under £130,000.
0:48:17 > 0:48:21So, what are the resale valuations?
0:48:21 > 0:48:25I would put this on between 145 and 150,000.
0:48:25 > 0:48:30I could put this on the market for £159,995.
0:48:30 > 0:48:34It's slightly disappointing. I was hoping more towards the 160-mark-plus.
0:48:34 > 0:48:38It's not a disaster. We're still in profit.
0:48:38 > 0:48:43Hopefully, we'll be able to hold onto it for a little bit longer and accrue a bit more profit.
0:48:43 > 0:48:49That maximum possible resale valuation could give them a £20,000 pre-tax profit.
0:48:49 > 0:48:52But what if they rent it out?
0:48:52 > 0:48:55We'd rent this out for £625 per calendar month.
0:48:55 > 0:48:59I'd be able to rent this property out for £700 per calendar month.
0:48:59 > 0:49:04700 is a good figure for renting and I think there's great possibilities here.
0:49:04 > 0:49:07There's Luton Airport with all the workers,
0:49:07 > 0:49:10and some quite big companies around here with transient workers,
0:49:10 > 0:49:13so I think it's a lovely house to rent.
0:49:13 > 0:49:17That's all down to Matt and Jane's hard graft.
0:49:17 > 0:49:19I reckon they deserve that cuppa.
0:49:19 > 0:49:23And I think Matt really does have an appetite for property developing now.
0:49:23 > 0:49:26It's been good. I've enjoyed the journey.
0:49:26 > 0:49:30I'm pleased with the result. Just can't wait to start the next project.
0:49:35 > 0:49:38Back to Devon now. In Plymouth, we met Graham,
0:49:38 > 0:49:42who'd paid £132,000 for this four-bed terraced house.
0:49:42 > 0:49:46He planned to add it to his growing rental portfolio.
0:49:46 > 0:49:50But before he could do that, he faced problems on every level.
0:49:50 > 0:49:52The ranged from rampant damp
0:49:52 > 0:49:55to an interior that was falling apart.
0:49:55 > 0:49:59Plus, the only loo was in a small courtyard at the back.
0:49:59 > 0:50:05It was the sort of project where any potential profit could easily be flushed away.
0:50:09 > 0:50:14Well, it's been four months, and it's great to see the changes outside.
0:50:15 > 0:50:19The front has been painted and replacement windows put in.
0:50:19 > 0:50:25Inside, the living room has been transformed into something far more appealing.
0:50:26 > 0:50:28A new kitchen's been installed
0:50:28 > 0:50:33and now looks a much more attractive place to rattle those pots and pans.
0:50:33 > 0:50:37But did Graham manage to turn four bedrooms into six?
0:50:37 > 0:50:39It's a six-bedroom house.
0:50:39 > 0:50:44We split the front bedroom and made two rooms.
0:50:44 > 0:50:48We had to literally alter the passageway.
0:50:51 > 0:50:55There was two rooms upstairs in the attic, but we put a dormer on,
0:50:55 > 0:51:01highered the roofs and ceilings and made two bedrooms up there.
0:51:04 > 0:51:08And we've changed the dining room into also a bedroom.
0:51:08 > 0:51:12With that back bedroom on the first floor, that makes six.
0:51:12 > 0:51:18With so many bedrooms and floors, this will be a licensable house of multiple occupancy.
0:51:18 > 0:51:21This means that, as it has over five bedrooms,
0:51:21 > 0:51:22it will need two loos.
0:51:22 > 0:51:26This place only had one and it was outside.
0:51:26 > 0:51:29In this part of the building, the door used to be here.
0:51:29 > 0:51:33We took the door down, created two walls, two bathrooms.
0:51:33 > 0:51:36We put a bath on this side, sink, toilet.
0:51:36 > 0:51:39This side, there's another toilet, a sink and a shower room.
0:51:39 > 0:51:43Now they've got two toilets inside the house, ideal for students.
0:51:43 > 0:51:48Graham's done a nifty job of solving that tricky bathroom situation.
0:51:48 > 0:51:53But that main solution to enlarging the space started on the roof.
0:51:54 > 0:51:58Up here, we had a wall with a chimley.
0:51:58 > 0:52:01The wall was quite wide. It was leaning really bad.
0:52:01 > 0:52:05We removed the wall and took the chimley right down through the building.
0:52:05 > 0:52:10In doing so, we've gained more room in the kitchen and the bathrooms.
0:52:10 > 0:52:14We took this flat roof off because the joists were so bad, they were rotten.
0:52:14 > 0:52:20We formed a dormer up here to give us more room in the attic for the bedrooms.
0:52:20 > 0:52:24We've put the railings up. They just need to be painted now.
0:52:24 > 0:52:28We've still got to put tiles down on the floor to finish the job off.
0:52:28 > 0:52:32I'm sure the students living here will be on the tiles quite a bit!
0:52:32 > 0:52:36From the top to the bottom now, where the courtyard has been revamped,
0:52:36 > 0:52:41and there is now a utility area, which frees up space in the kitchen.
0:52:41 > 0:52:46The outside loo has been kept, though it's still a bit chilly.
0:52:46 > 0:52:50But this small yard sums up the problems Graham faced here.
0:52:50 > 0:52:54The worst thing about this project was how small the house was,
0:52:54 > 0:52:57no parking, nowhere to put your rubbish
0:52:57 > 0:53:01and nowhere to have materials delivered to you.
0:53:01 > 0:53:05We had to have all materials delivered up the end of the lane and hand-brought down.
0:53:05 > 0:53:08That has been really time consuming.
0:53:08 > 0:53:12Due to rebuilding that external back wall,
0:53:12 > 0:53:16gutting the house completely and the total renovation required,
0:53:16 > 0:53:21budget did increase from 25 to £32,000.
0:53:21 > 0:53:25Add that to the purchase price of £137,000,
0:53:25 > 0:53:28and the total spend is £169,000.
0:53:28 > 0:53:34But with the help of his team, Graham managed to do it in his estimated time of 16 weeks.
0:53:34 > 0:53:38Now he's waiting for the HMO inspection to be approved
0:53:38 > 0:53:42and then, of course, there's the quality control of the new tenants.
0:53:42 > 0:53:45The students who are already renting the property,
0:53:45 > 0:53:50they came to look at it in its first state, but they haven't been back yet.
0:53:50 > 0:53:54Their eyes will be opened a little bit. Hopefully, anyway!
0:53:54 > 0:53:58Graham will be letting to students for £80 per room, per week.
0:53:58 > 0:54:04So for six rooms, that all adds up to a lean, mean rental machine.
0:54:09 > 0:54:14Bearing Graham's total spend of £169,000 in mind,
0:54:14 > 0:54:16we asked two local property experts
0:54:16 > 0:54:20if they thought the house came top of the class.
0:54:21 > 0:54:24I think the bloke's a magician, compared to when I last saw it.
0:54:24 > 0:54:27It's clean, nice, bright, tidy.
0:54:27 > 0:54:29It's a quality job.
0:54:29 > 0:54:33The standard of finish is very good actually. It's very neat and tidy.
0:54:33 > 0:54:36Plaster walls, which is perfect, because you want to avoid paper.
0:54:36 > 0:54:40Modern kitchen. He's done a really good job with the bathroom
0:54:40 > 0:54:43to make two units out of what is really one room.
0:54:43 > 0:54:47The layout is very efficient,
0:54:47 > 0:54:49particularly on this floor.
0:54:49 > 0:54:52By having an angled lobby, he's ended up with three good rooms
0:54:52 > 0:54:55instead of two good rooms and a squirty one.
0:54:55 > 0:54:59The layout works very well for his proposed use.
0:54:59 > 0:55:04Six double letting rooms is perfect for the size of the property.
0:55:04 > 0:55:07Lots of good feedback there.
0:55:07 > 0:55:10Graham's charging £80 per week, per room.
0:55:10 > 0:55:13So, is the house earning to its full potential?
0:55:13 > 0:55:16As a student let, for each room,
0:55:16 > 0:55:21you're going to get a minimum of £80 a week for about 11 months.
0:55:21 > 0:55:25So the rent roll for the building for a classic academic year
0:55:25 > 0:55:28will be around £23,000.
0:55:28 > 0:55:33The rental income here will be approximately £2,000 per calendar month.
0:55:33 > 0:55:38The year for student rental will be 11 months of the year,
0:55:38 > 0:55:402,000 times 11 - £22,000,
0:55:40 > 0:55:44which means it's an excellent investment and incredibly good yield.
0:55:44 > 0:55:47Yes, that's what I've valued them at.
0:55:47 > 0:55:49I've rented at £80 a week.
0:55:49 > 0:55:54So I'm quite happy... very happy with the return on it.
0:55:54 > 0:55:56Graham was spot on with his rent there.
0:55:56 > 0:55:59But the experts reckon that if he ever decides to sell,
0:55:59 > 0:56:02its rental potential could be a real bonus.
0:56:02 > 0:56:08If sold as a rental machine, it could possibly fetch £240,000,
0:56:08 > 0:56:12meaning a whopping pre-tax profit of £71,000.
0:56:15 > 0:56:17That's very pleasing.
0:56:17 > 0:56:21I knew on the rental side how much I was going to be getting back, but that's...
0:56:21 > 0:56:23Much happier now!
0:56:23 > 0:56:28I'm not surprised. But profit aside, Graham's done an excellent job here
0:56:28 > 0:56:32and it's something he's sure the students will appreciate, too.
0:56:33 > 0:56:37I'm very pleased with the property. It's turned out very nice.
0:56:37 > 0:56:41I just can't wait to see the students when they move back in, to see their faces.
0:56:48 > 0:56:51Well, those stories have now been added to our archive.
0:56:51 > 0:56:55But there are always more. So join us next time for Homes Under The Hammer.
0:56:55 > 0:56:56- See you! - BOTH: Goodbye!
0:56:56 > 0:57:00Subtitles by Red Bee Media Ltd
0:57:00 > 0:57:05E-mail subtitling@bbc.co.uk