0:00:02 > 0:00:08- There's a huge variety of properties at an auction.- And Lucy and I look at all manner of cottages,
0:00:08 > 0:00:12bungalows, houses, plots of land, commercial premises...
0:00:12 > 0:00:16Why not buy your next home under the hammer?
0:00:41 > 0:00:47Buying an investment property often means developing new skills before you can make a profit.
0:00:47 > 0:00:53Learning to put up wallpaper, managing tradesmen and sticking to budgets are just three things.
0:00:53 > 0:00:58Here are the properties that need some attention on today's show.
0:00:59 > 0:01:04Nestling in East Lothian, this bungalow's caught my eye.
0:01:04 > 0:01:08It's a big property. I'm liking what I'm seeing.
0:01:09 > 0:01:13Near Twickenham rugby stadium, this conversion won't be cheap!
0:01:13 > 0:01:18Whoever takes this on will need a stash of cash to make it beautiful.
0:01:20 > 0:01:24And you'd need more than an auction hammer for this Stoke property.
0:01:24 > 0:01:29That is brick and there's no way you'll be moving that.
0:01:30 > 0:01:36All of these properties went to auction and we'll find out who bought them and what they paid
0:01:36 > 0:01:39when they went under the hammer.
0:01:41 > 0:01:45Welcome to beautiful Scotland. East Lothian, to be precise.
0:01:45 > 0:01:51I'm just outside Garvald in the Lammermuir Hills. It's absolutely glorious.
0:01:51 > 0:01:5626 miles from Edinburgh, so I reckon it's commuter district.
0:01:56 > 0:01:58Let's take a look at the property.
0:02:00 > 0:02:05The place I'm here to see is guided at £150,000.
0:02:05 > 0:02:12The property is called Castle Moffat. Now I've done a lot of houses on this show,
0:02:12 > 0:02:15but never a castle before.
0:02:15 > 0:02:18How terribly exciting.
0:02:21 > 0:02:26I don't know about "castle". Looks more like a bungalow to me.
0:02:26 > 0:02:31'My wait for battlements and turrets goes on.
0:02:31 > 0:02:34'It's a three-bedroom bungalow in a rural setting
0:02:34 > 0:02:38'that looks in need of some exterior maintenance.
0:02:38 > 0:02:42'So lower the drawbridge - I'm coming in!'
0:02:46 > 0:02:51At least there's no moat to negotiate! But what's it like?
0:02:51 > 0:02:55Nice, big entrance. Loo and cloakroom there.
0:02:55 > 0:02:57Through to the main corridor.
0:02:57 > 0:03:01A living room/lounge. We'll explore that in a minute.
0:03:01 > 0:03:05Corridor down to the bedrooms, then through to the kitchen.
0:03:05 > 0:03:11It's obviously tired and dated, but intrinsically it's a big property
0:03:11 > 0:03:13and I'm liking what I'm seeing.
0:03:13 > 0:03:19'To go with the three bedrooms there's a family bathroom that's more than big enough.
0:03:19 > 0:03:24'I'd just change the suite. The second loo is fine as it is.
0:03:24 > 0:03:29'Love the lounge. The dining room's got a hatch - keep it or lose it?'
0:03:29 > 0:03:33So dining room there, through to the living room.
0:03:33 > 0:03:39It's great there's a real fire, but the key to this property is out of the window.
0:03:39 > 0:03:43Absolutely fantastic. Shame there's these industrial buildings,
0:03:43 > 0:03:48but look to the distance - what a fantastic view!
0:03:49 > 0:03:54'That's probably the main selling point here - that great view.
0:03:54 > 0:04:00'It's just a shame that there are several other buildings that are rather industrial.
0:04:00 > 0:04:05'They give a clue about what the bungalow was previously used for.'
0:04:05 > 0:04:11The bungalow was owned by the surrounding business and was used as their offices,
0:04:11 > 0:04:18so it's currently got business use. No problem - move your stuff in and you can start living in it.
0:04:18 > 0:04:24Well, sadly not. You'll have to apply for planning permission to change use to residential.
0:04:24 > 0:04:29And, as we know, that takes time and you won't necessarily get it.
0:04:29 > 0:04:32'So the first drawback. Not ideal.
0:04:33 > 0:04:38'Time to see if the auctioneer who sold it can tell me more.
0:04:38 > 0:04:41'It was guided at 150 grand.
0:04:41 > 0:04:47'I know it used to belong to the engineering works next door, which has undergone refurbishment,
0:04:47 > 0:04:53- 'but why did this property go to auction?'- The property was used as a site office
0:04:53 > 0:04:57during that process of refurbishment and then was declared redundant.
0:04:57 > 0:05:00I don't think it's a big problem.
0:05:00 > 0:05:06All that needs to be done is for the inside to be turned round so the front is on the other side.
0:05:06 > 0:05:11'Well, that's relatively easily solved. What are the main options?'
0:05:11 > 0:05:17I think, potentially, you could use the property for holiday lets.
0:05:17 > 0:05:19It's a very popular tourist area.
0:05:19 > 0:05:24You might get people interested to come out here,
0:05:24 > 0:05:29but it's a limited market, so that's only for the summer period.
0:05:31 > 0:05:36'Let's talk money. Once renovated, how much income could it generate,
0:05:36 > 0:05:41'not as a holiday let, but as a home for someone?'
0:05:41 > 0:05:48We believe new owners might be able to let this out at a rental level of £500-£600 per calendar month.
0:05:48 > 0:05:54'Once the bungalow's been fully refurbished, how much could it be worth if sold?'
0:05:54 > 0:05:58Once renovated, depending on what you're going to do with it,
0:05:58 > 0:06:02it's probably going to be about £150,000-£160,000.
0:06:02 > 0:06:06It really depends on how much you spend on it.
0:06:06 > 0:06:12'Maybe all this bungalow needs is a comprehensive makeover.
0:06:12 > 0:06:17'But outside I suspect the roof and gutters could do with some money spent on them.'
0:06:17 > 0:06:24You certainly can't knock the location. It's stunning, but there are the industrial buildings.
0:06:24 > 0:06:28And there is the issue of getting the change of use to residential.
0:06:28 > 0:06:33But it's a lot of property for the money. Let's see who went for it.
0:06:33 > 0:06:40A detached, single-storey bungalow. Reasonable condition, but it does need some care and attention.
0:06:40 > 0:06:47Where are we going to start? 100 anywhere? 80 to get us started?
0:06:47 > 0:06:4970 to get me started?
0:06:49 > 0:06:54Thank you, sir. £70,000, sitting down on my right.
0:06:54 > 0:06:5675 anywhere?
0:06:56 > 0:06:5875. 80?
0:06:58 > 0:07:0085? 90.
0:07:00 > 0:07:0495. 100. 105? He's shaking his head.
0:07:04 > 0:07:09100. With the gentleman in the stripy shirt. £100,000.
0:07:09 > 0:07:15105 anywhere? At the back. 105, standing against the wall. 110, sir?
0:07:15 > 0:07:19Take two and a half. 107,500.
0:07:19 > 0:07:23110, sir? Thank you, sir. 110.
0:07:23 > 0:07:25112 and a half? No.
0:07:25 > 0:07:31110 standing against the back wall. Are we all done? 112. Thank you, sir.
0:07:31 > 0:07:36114? 114. Thank you, sir. 116? 116.
0:07:36 > 0:07:39118? 118.
0:07:39 > 0:07:42120? 120.
0:07:42 > 0:07:45122? He's shaking his head.
0:07:45 > 0:07:48At £120,000. I'll sell at 120.
0:07:48 > 0:07:50It's cheap at that. I'll take 1.
0:07:50 > 0:07:52121. 122?
0:07:52 > 0:07:55122. 123. 124?
0:07:55 > 0:07:58No, he's shaking his head. 123 at the back.
0:07:58 > 0:08:02At £123,000. Going once.
0:08:03 > 0:08:08Twice. You've definitely done? Third and final time. £123,000.
0:08:08 > 0:08:13- The gentleman standing at the back. - 'That successful bid of £123,000
0:08:13 > 0:08:16'came from friends Gerry and Ian.
0:08:16 > 0:08:21'I met them back at the bungalow to find out their plans.'
0:08:21 > 0:08:25- Gerry, Ian, congratulations. - Thank you.- Well done.
0:08:25 > 0:08:27- Nice location.- Yes, it's good.
0:08:27 > 0:08:30Tell me why you wanted it.
0:08:30 > 0:08:35Well, to be honest, it wasn't our first pick at the auction.
0:08:35 > 0:08:39We had another property in mind, but we got outbid for it.
0:08:39 > 0:08:46- This one came up, so we thought we'd go for it.- We'd viewed quite a few, so we had a sort of list.
0:08:46 > 0:08:50- Had you been round this one? - Not inside, but outside.- Right.
0:08:50 > 0:08:57- How come not inside?- We never came up at the viewing time. But we knew what we were getting.
0:08:57 > 0:09:03- Given that you weren't sure you'd buy it, did you read the legal pack? - No.- Have you read it now?
0:09:03 > 0:09:05The solicitor has!
0:09:05 > 0:09:12- Is there any problem?- No.- No. - You got away with it? - Yeah. Just.
0:09:12 > 0:09:16'Gerry and Ian were lucky, but it could have been different.
0:09:16 > 0:09:23'Please, would be buyers, always read the legal pack first. It's too large an investment
0:09:23 > 0:09:25'to enter into blind'
0:09:25 > 0:09:31- So tell me about you two. - We've worked together for 10 years. - What do you do?- Both joiners.
0:09:31 > 0:09:36We're sick doing houses up for everybody else.
0:09:36 > 0:09:41- What made you make the decision to do this now? - I've always been a saver
0:09:41 > 0:09:46and the money I've had in the bank is no' doing anything,
0:09:46 > 0:09:52so we thought with house prices dropping, now would be the time. It's a wise investment.
0:09:52 > 0:09:57- So why this property?- Well, just cos it's great to do up.
0:09:57 > 0:10:04We've got the resources, it's been quiet at work, so we can spend some time in here.
0:10:04 > 0:10:09- Hopefully make some money on it. - So that's the plan? - Do it up and sell it.
0:10:09 > 0:10:14We want to do it to a high standard. It's no' just a lick of paint job.
0:10:14 > 0:10:17We've got to spend some money on it.
0:10:17 > 0:10:22- What about the house appealed? The view?- The location and view.
0:10:22 > 0:10:27And I was very surprised when we got inside at how big it was.
0:10:27 > 0:10:32- So tell me what you're going to do. - We'll put a gas burner stove here.
0:10:32 > 0:10:37In the kitchen, we hope to knock down the wall and make a kitchen diner.
0:10:37 > 0:10:43And hopefully patio doors, depending on planning permission. And maybe some ensuite bathrooms.
0:10:43 > 0:10:48'I think that's a great idea. Adding ensuites will help sell the property.
0:10:48 > 0:10:55'The kitchen's a good size, but you could use the space in the utility room more efficiently.
0:10:55 > 0:10:58'Those serving hatches aren't to everyone's taste.
0:10:58 > 0:11:03'It could be time to open it up to one large kitchen/diner.'
0:11:03 > 0:11:08- How much is it going to cost? Budget?- £40,000.- 40?!- Budgeted 40.
0:11:08 > 0:11:14- Is that including your own time? - That's budgeted for our time. - Uh-huh.
0:11:14 > 0:11:20- That sounds quite a healthy budget. - Well, the thing is, it's got to be a new central heating system.
0:11:20 > 0:11:24- And we want to take some trees down. - We've got a budget for that.
0:11:24 > 0:11:28- That can be expensive.- Yes. - We're no' sure.
0:11:28 > 0:11:32We spoke to a couple of people who can do it, but no prices.
0:11:32 > 0:11:36The neighbours had their trees taken down.
0:11:36 > 0:11:42'Although the neighbouring property removed the trees, there could be a major issue here.
0:11:42 > 0:11:46'It could require specialists and, potentially, planning permission.'
0:11:46 > 0:11:53- This has currently got planning for business use.- Yes, uh-huh. - What will you do about that?
0:11:53 > 0:11:59We've already got in touch with the council. We're applying for planning to turn it back to residential.
0:11:59 > 0:12:07- Think they might say no? - Don't think so.- It was residential before it was an office.
0:12:07 > 0:12:12- So what about the timescale? - We reckon three months.
0:12:12 > 0:12:18- How much of the work will you do? - I'll do most of it. Gerry will be in Edinburgh on our other work.
0:12:18 > 0:12:24- How much will you do on your own? - Just the joinery. We'll get trades for everything else.
0:12:24 > 0:12:28- What about the garden?- I'll do it. - He's a dab hand in the garden.
0:12:28 > 0:12:33It is lovely up here, but I bet it gets very cold in the winter.
0:12:33 > 0:12:39- Yeah.- We are quite high up. The neighbours were snowed in for four days last year.
0:12:39 > 0:12:45- Wow! And you're going to be here with no central heating.- Yeah. - In a bare house.
0:12:45 > 0:12:50- Yeah.- In the middle of winter doing it up.- I'll be all right.
0:12:50 > 0:12:54- You're tough up in Scotland. - Oh, aye. You have to be.
0:12:54 > 0:12:58Working on building sites, it's hard.
0:12:58 > 0:13:05- Listen, good luck. Congratulations. I'll post you some snow shoes! - Thanks very much!
0:13:05 > 0:13:11'Whatever the weather, I hope these two don't slip up on this, their first property.'
0:13:11 > 0:13:17Gerry and Ian clearly delighted to have got this place, but they didn't read the legal pack.
0:13:17 > 0:13:21As it is, the major issues are the trees, how much they'll cost,
0:13:21 > 0:13:26and will they get planning permission? On top of that,
0:13:26 > 0:13:31will Ian need a toboggan to get in to work? You can find out later.
0:13:34 > 0:13:40We're just west of London today in Richmond upon Thames, Twickenham to be precise.
0:13:40 > 0:13:42Although it's known for rugby,
0:13:42 > 0:13:49what you might not have heard is that in the 18th century it was also famous for gunpowder.
0:13:49 > 0:13:56So will the property today be as explosively exciting or just a flash in the pan?
0:13:56 > 0:14:01Ah, tranquil swans and boating on the river.
0:14:01 > 0:14:06It would be quite easy to while away an afternoon here,
0:14:06 > 0:14:11but I need to snap out of it and head off to see the property.
0:14:11 > 0:14:15Two minutes from the train station and here's today's auction lot.
0:14:15 > 0:14:21It's a three-bedroom mid-terrace. It had a guide price of £350,000.
0:14:21 > 0:14:25Now that is really cheap for this leafy suburb.
0:14:25 > 0:14:30Well, now I can see why it's so modestly priced.
0:14:30 > 0:14:39'Modestly priced, that is, in a road where nearby houses have sold for £482,000-£600,000.
0:14:39 > 0:14:44'This looks like the classic house of horrors where problems lurk.
0:14:44 > 0:14:50'It really does have a grim appearance - the windows are boarded and rotten.
0:14:50 > 0:14:54'With these cracks, it's not very promising.'
0:14:55 > 0:15:01I'm not going to be put off by those three padlocks and all the boards up outside.
0:15:01 > 0:15:07What I love about this terraced house is you've got a really wide, welcoming entranceway.
0:15:07 > 0:15:11There's enough room here for a table, put a big mirror up.
0:15:11 > 0:15:15There's a lovely lounge, a great size, ceiling height.
0:15:15 > 0:15:19A second reception room towards the back of the property.
0:15:19 > 0:15:23It's all feeling rather empty and cold, though.
0:15:23 > 0:15:28And all the under stairs cupboards have been taken away, there's no kitchen,
0:15:28 > 0:15:34a great big crack in the floor and, before you know it, you're in the back garden,
0:15:34 > 0:15:41which does need a little bit of work. But that is what I call open-plan living.
0:15:42 > 0:15:50'But you've got to think positive. At a guide price of £350,000, there was a lot of house on offer.
0:15:50 > 0:15:55'The two living rooms have original windows and fireplaces,
0:15:55 > 0:15:59'plus some original floorboards that look to be in good nick.
0:15:59 > 0:16:04'The kitchen's been torn to shreds, but at least there are no units to rip out.
0:16:04 > 0:16:07'But I fear it'll be a big job.
0:16:07 > 0:16:10'Upstairs, things are just as bad.
0:16:10 > 0:16:16'The auction catalogue said it had three bedrooms. Well, these two are a good size
0:16:16 > 0:16:18'and have original features.
0:16:20 > 0:16:26'Although the bathroom's been left, it's a temporary stay of execution. It needs to be ripped out as well.'
0:16:26 > 0:16:32Well, this is the third bedroom at the front of the property and the most impressive.
0:16:32 > 0:16:38You've got three lovely sash windows. I like it. One thing's for sure, though,
0:16:38 > 0:16:45whoever takes this on will need a stash of cash to make it a beautiful home.
0:16:46 > 0:16:51'The original design of the house had the back extending out
0:16:51 > 0:16:55'and up here on the first floor, right at the end,
0:16:55 > 0:17:03'this third bedroom has an odd feature - a bay window looking out to the back. Very unusual.'
0:17:03 > 0:17:10I'm always looking to add value to houses. The quickest way is to extend or create extra bedrooms.
0:17:10 > 0:17:15You only need to look next door up there at the neighbours
0:17:15 > 0:17:19to see how they benefit from extra space.
0:17:19 > 0:17:24A precedent has been set, so that is good news for whoever buys this.
0:17:24 > 0:17:31'Time to find out what information a local estate agent can give me about this place
0:17:31 > 0:17:35'that went to auction at a guide price of £350,000.
0:17:35 > 0:17:41'Is there any point in extending or possibly converting it into two self-contained apartments?'
0:17:42 > 0:17:46You could potentially extend. Going into the loft is an option.
0:17:46 > 0:17:51The garden, with the size that it is, is probably best left as a three-bed.
0:17:51 > 0:17:54You could split it into two flats.
0:17:54 > 0:17:58The ground floor - one bedroom and garden - would be £250,000.
0:17:58 > 0:18:01The top floor, two-bedroom without garden,
0:18:01 > 0:18:07would probably be in the region of £300,000, but you've then got two sales to worry about.
0:18:07 > 0:18:10I think it works better as a house.
0:18:10 > 0:18:16'Let's talk figures now. How much could a buyer make if they kept it as a family home,
0:18:16 > 0:18:19'but gave it a tip-top renovation?'
0:18:19 > 0:18:22You're probably looking to put it on at high fives.
0:18:22 > 0:18:29Good quality renovations go well in this area. Put it around that level and try for, say, 550.
0:18:29 > 0:18:33'This is a huge renovation project for someone to take on,
0:18:33 > 0:18:40'but as it's near the river and central London, Twickenham is high on many house hunters' lists.'
0:18:40 > 0:18:45This property is a bit of a wreck, but it's got great potential.
0:18:45 > 0:18:51For somebody with time and money, it's ideal. You could have a lovely three or four-bedroomed house.
0:18:51 > 0:18:57So who was brave enough to take on this challenge? Let's see who bought it under the hammer.
0:18:57 > 0:19:02The next property is a mid-terraced property.
0:19:02 > 0:19:04Three rooms upstairs.
0:19:04 > 0:19:07350 anywhere?
0:19:07 > 0:19:10340? Not going any lower than 340.
0:19:10 > 0:19:13340? Yeah? 340.
0:19:13 > 0:19:17345? 345.
0:19:17 > 0:19:19345. 350?
0:19:19 > 0:19:21350. 355?
0:19:21 > 0:19:23360.
0:19:25 > 0:19:27365. 370.
0:19:28 > 0:19:31370. 375.
0:19:32 > 0:19:37380? 380? What's that - half or five? 385?
0:19:37 > 0:19:42385. 38...6? 387?
0:19:42 > 0:19:45Struggling. Another place. 387.
0:19:45 > 0:19:48388. 389.
0:19:48 > 0:19:50390. 391?
0:19:50 > 0:19:52392.
0:19:52 > 0:19:56393. 394?
0:19:56 > 0:19:59393, with you. 394?
0:19:59 > 0:20:01393.
0:20:01 > 0:20:06First time. Second time. Th... 394. Another spot.
0:20:06 > 0:20:09395. 396.
0:20:09 > 0:20:11397.
0:20:11 > 0:20:13398.
0:20:13 > 0:20:18399. 400. 400 sitting down.
0:20:18 > 0:20:20401 anywhere?
0:20:21 > 0:20:26400. First time. Second time. Third and last time.
0:20:26 > 0:20:30Are you all done? Sold - 400.
0:20:30 > 0:20:36'That winning bid of £400,000 was made by husband and wife John and Colette.
0:20:36 > 0:20:43'For over 15 years they've run their own maintenance firm, which they sold in 2008.
0:20:43 > 0:20:48'They live in the Wirral, but have bought this house in Twickenham.
0:20:48 > 0:20:51'I met them to hear about their plans.'
0:20:51 > 0:20:56John and Colette, congratulations. You paid 400 grand at auction.
0:20:56 > 0:20:58- We did!- Yes, we did.
0:20:58 > 0:21:05- Happy with the price?- Yes. - We're very happy. We'd have gone up to £450,000.
0:21:05 > 0:21:09- So you're 50 grand in!- Yes, already. - Ready to spend!
0:21:09 > 0:21:14- Had you researched this property? Had you viewed it?- No.
0:21:14 > 0:21:18I hadn't viewed it at all. John did the research.
0:21:18 > 0:21:23Yeah, I...I looked at it. I looked at it and thought...
0:21:23 > 0:21:29- Wait. You looked at it where? - On the internet. I did everything on the internet, priced it.
0:21:29 > 0:21:32Everything was done on the internet.
0:21:32 > 0:21:37I didn't have time to get down here and view it from the Wirral.
0:21:37 > 0:21:41We charged down here, into the auction and got on with it.
0:21:41 > 0:21:47'Incredibly, they'd only seen it on the internet. Although they sensibly obtained the legal pack,
0:21:47 > 0:21:51'John's solicitor didn't have time to read it before the auction.
0:21:51 > 0:21:57'So they paid £400,000 for a house they'd not seen or checked out for legal issues.'
0:21:57 > 0:22:02- What did you think when you first walked through the door?- It's big.
0:22:02 > 0:22:08- Not, "Oh, my God! Look at it"? - Well, I kind of already thought it wouldn't look at its best,
0:22:08 > 0:22:13so not really. I wanted to see the size, the layout, what we could do.
0:22:13 > 0:22:20- I couldn't believe it went for £400,000.- Do you still feel you got the ultimate bargain?- Yeah, I do.
0:22:20 > 0:22:26- We've walked around and seen where it is, the location. - We got a bargain here. Unbelievable.
0:22:26 > 0:22:32'John and Colette's plan is to buy three properties of similar size each year.
0:22:32 > 0:22:39'As they were investing so much, they decided an area near London would be good for the first.'
0:22:39 > 0:22:45We looked at it and thought, whatever needs doing on it, for the price we bought it for,
0:22:45 > 0:22:50even if you spent, in your wildest dreams, £100,000, making £500,000,
0:22:50 > 0:22:56you can't lose because these are going for six,
0:22:56 > 0:23:00six plus. We've looked at everything and we thought, "OK. Give it a go."
0:23:00 > 0:23:04I don't see any way you could lose at all.
0:23:04 > 0:23:09So what's the future for this house? Keeping it as one dwelling?
0:23:09 > 0:23:14What I'm going to do is first check with local estate agents.
0:23:14 > 0:23:19Some of the areas have got flats in. We could make a big family house.
0:23:19 > 0:23:23I'll bring an architect in and get some plans done.
0:23:23 > 0:23:28Once I've done the plans, I'll decide what we're going to do.
0:23:28 > 0:23:32'As they ran a maintenance company for over 15 years,
0:23:32 > 0:23:37'they have useful contacts and some renovation experience themselves.
0:23:37 > 0:23:42'Whatever they decide to do, John will project manage it,
0:23:42 > 0:23:46'and bring some guys from the Wirral to do the renovation.'
0:23:46 > 0:23:49How long will it take you?
0:23:49 > 0:23:54Well, I would reckon about six months.
0:23:54 > 0:23:56How much do you think you'll spend?
0:23:56 > 0:24:00If we spent 50, great. 70 at the most.
0:24:00 > 0:24:04That's to do everything - windows, plastering obviously,
0:24:04 > 0:24:08new kitchen, bathroom, electrics, plumbing.
0:24:08 > 0:24:12Guys, good luck with this! I hope you're still smiling next year!
0:24:12 > 0:24:16- Me, too!- Well done. - Thank you.- Thanks.
0:24:16 > 0:24:23'There's a lot of hard graft necessary to turn this ugly duckling into a beautiful swan.'
0:24:26 > 0:24:31John and Colette have taken on a big project.
0:24:31 > 0:24:37They've got to project manage it from the Wirral and have to choose between conversion to flats
0:24:37 > 0:24:43or keeping it as one house. And with John wanting it all done as soon as possible,
0:24:43 > 0:24:49they'll have to decide soon. Find out later in the programme what happens here in Twickenham.
0:24:50 > 0:24:55Coming up: don't let the state of this Stoke property fool you.
0:24:55 > 0:24:59Sort it out and it's a perfect rental opportunity.
0:25:00 > 0:25:07We return to Twickenham where John has surprised everyone, including himself.
0:25:07 > 0:25:12As project manager, I must be pretty well organised!
0:25:12 > 0:25:17But first, back in East Lothian, have this duo got the property bug?
0:25:17 > 0:25:22Definitely. When this one sells, we'll be in for another one.
0:25:22 > 0:25:29'We return now to Garvald in East Lothian where, earlier in the programme,
0:25:29 > 0:25:34'business partners Gerry and Ian paid £123,000 for this bungalow.
0:25:34 > 0:25:40'They're both joiners by trade, but decided on property developing as a sideline.
0:25:40 > 0:25:45'This property had been used as an office for this engineering works.
0:25:45 > 0:25:51'The plan was to apply for residential use, refurbish it and then sell it on.
0:25:51 > 0:25:55'Well, four months later, we met up again
0:25:55 > 0:26:00'with Gerry and Ian to see what progress they'd made.
0:26:00 > 0:26:04'First, they've moved access to the property from what was the rear.
0:26:04 > 0:26:10'It's created a more pleasing entrance and means the back now looks over the engineering works.
0:26:13 > 0:26:18'Inside, the bungalow looks fabulous with bright, neutral decor.
0:26:18 > 0:26:24'In the living room, the office-style strip lighting and that fireplace have gone,
0:26:24 > 0:26:28'replaced with modern downlighters and this stylish stove.
0:26:28 > 0:26:33'The refurbishment continues in the bedrooms and bathroom.
0:26:33 > 0:26:38'But it's the impressive kitchen conversion that really hits you.'
0:26:39 > 0:26:46This is the kitchen. We've enlarged it by taking the wall down that separated the kitchen
0:26:46 > 0:26:52from the dining room. There was a hatch in it. Not a very good set up.
0:26:52 > 0:26:57So what we've done is enlarge the kitchen to form a dining area
0:26:57 > 0:27:00and we've also got a utility room.
0:27:00 > 0:27:04'Gerry and Ian are more used to bespoke timber constructions,
0:27:04 > 0:27:09'but they fitted the kitchen themselves and it looks pretty good.
0:27:09 > 0:27:13'How much did they spend on this part?'
0:27:13 > 0:27:15Probably about £5,000.
0:27:15 > 0:27:22But we think it's worth it because it was a really old kitchen. It had to be renewed completely.
0:27:22 > 0:27:28We've also put in French doors to the rear of the building, which is south-facing.
0:27:28 > 0:27:34It gets the sun all day and with the patio we'll build this will be a great room.
0:27:34 > 0:27:39'Yes, and a great place to enjoy the views when the weather's brighter.
0:27:39 > 0:27:45'The good news is that they did get a change of use from commercial to residential.
0:27:45 > 0:27:53'It's taken four months, but in spite of the weather and other work, they've achieved a lot here.'
0:27:53 > 0:27:57We've done a lot in a short space of time, but we've a lot more to do.
0:27:57 > 0:28:03We came in, stripped everything out and put a new kitchen in, new bathroom, ensuites,
0:28:03 > 0:28:05new floors, doors
0:28:05 > 0:28:10'They'd hope to remove a lot of the trees at the back.
0:28:10 > 0:28:15'The local authority insisted they remained, apart from one,
0:28:15 > 0:28:18'though they were allowed to cut back the overgrown trees.
0:28:18 > 0:28:23'But they'd barely started when the weather changed.'
0:28:23 > 0:28:29We were in it a month and the snow came. That put us off for a while, so we've not done anything outside.
0:28:29 > 0:28:33The worst moment was digging ourselves into the driveway.
0:28:33 > 0:28:37- Martin was right about the snow shoes.- We should have got some!
0:28:37 > 0:28:42He was right, aye, but we've been all right.
0:28:42 > 0:28:49'Well, that's a first - owners having to dig their way in to a property to start work.
0:28:50 > 0:28:56'But all that hard work has been worth it, especially dividing the bathroom in two,
0:28:56 > 0:28:59'which added an extra feature.'
0:29:00 > 0:29:04We've decided to chop the bathroom in half. It was really big.
0:29:04 > 0:29:08We've still got a family bathroom and a nice ensuite shower.
0:29:10 > 0:29:17'Gerry reckons the kitchen cost around £5,000, but what's been the total bill?
0:29:17 > 0:29:24'After paying £123,000 at auction, they set a budget of around £40,000, but how much have they spent?'
0:29:25 > 0:29:31- Roughly, we've spent about £35,000. - But we've still got outside to do, the landscaping
0:29:31 > 0:29:37and the turfing to do. That'll take us up to where we imagined we'd be.
0:29:41 > 0:29:47'Time to see how much two local property experts think it could achieve when put up for sale.'
0:29:47 > 0:29:52I think it's amazing. I really like the log burner, the kitchen
0:29:52 > 0:29:55and splitting the bathroom to create an ensuite.
0:29:55 > 0:30:00It has an awful lot going for it, not least of which is its location.
0:30:00 > 0:30:04It's blissfully rural, yet just half an hour from Edinburgh.
0:30:04 > 0:30:10Nice bright rooms, new lighting, a nice canvas for a family to decorate in the way they want.
0:30:10 > 0:30:13And the kitchen will be really nice.
0:30:13 > 0:30:17I particularly like the bathroom. They've split it into two parts.
0:30:17 > 0:30:21They've fitted it out extremely well.
0:30:21 > 0:30:25What they've very successfully done, which is important,
0:30:25 > 0:30:33is to turn the back on the operational works, with the exception of the views, which are stunning.
0:30:33 > 0:30:37'What about that all-important valuation?
0:30:39 > 0:30:46'Gerry and Ian paid £123,000 at auction and estimate a spend of around £40,000,
0:30:46 > 0:30:50'so they'll have £163,000 invested here.'
0:30:50 > 0:30:54We would expect to achieve something in the order of £250,000,
0:30:54 > 0:30:58or possibly more if there was some competition.
0:30:58 > 0:31:05We're probably looking at somewhere around £200,000 for resale figures.
0:31:05 > 0:31:11'Even on that low valuation of £200,000, that's a gross profit of £37,000
0:31:11 > 0:31:14'before the usual deductions.'
0:31:14 > 0:31:19- Great. Magic.- That's excellent. - Really good, yeah.
0:31:19 > 0:31:23- I'm surprised. Delighted. - Delighted, good.
0:31:23 > 0:31:25Really good. Makes it worthwhile.
0:31:25 > 0:31:33'So their hard work and snow shovelling has paid dividends on this, their second project.
0:31:33 > 0:31:38'They're looking to sell ASAP so what's next? On to Property Three?'
0:31:38 > 0:31:43Yeah, definitely do it again. As soon as this one sells.
0:31:43 > 0:31:49- 'Will they head back to the auction to buy under the hammer again?' - Certainly.
0:31:49 > 0:31:53I think it's an ideal way to get property.
0:31:53 > 0:31:58If you can get it cheaper, I think it's the way to go.
0:31:58 > 0:32:03Very glad that we've done it. I'd do it all over again.
0:32:05 > 0:32:12I'm in Hanley, widely regarded as the capital of the town's making up Stoke-on-Trent.
0:32:12 > 0:32:18Now this area has definitely gone through hard times in recent history.
0:32:18 > 0:32:24All the industries in which it excelled have gone into decline. Steelworks, gone. Mining, gone.
0:32:24 > 0:32:30So with the motto of the town being, "United, strength is stronger,"
0:32:30 > 0:32:33is this place on the up?
0:32:33 > 0:32:38'I think the answer's yes, but it's a slow process.
0:32:38 > 0:32:45'It's not immediately apparent when there are almost more broken windows than undamaged panes,
0:32:45 > 0:32:49'but the signs are promising that investment is giving hope.'
0:32:49 > 0:32:53You may expect property prices to be fairly reasonable,
0:32:53 > 0:32:56but how is this for cheap?
0:32:56 > 0:33:01A two-bedroom mid-terrace at a guide price of just £36,000.
0:33:01 > 0:33:05That's a place to live for the price of a decent car.
0:33:05 > 0:33:08Wow. Is it fit for inhabitants?
0:33:09 > 0:33:14Enter with trepidation... What can that money really buy you?
0:33:14 > 0:33:19You know what? Doesn't smell damp. Doesn't look too bad. I've seen worse.
0:33:19 > 0:33:22Front room here.
0:33:22 > 0:33:25Old fireplace, but that's trifling.
0:33:25 > 0:33:27Good sized ceilings.
0:33:27 > 0:33:31Through this little corridor to the rear sitting room area.
0:33:31 > 0:33:37These are the stairs to the bedrooms and, judging by that noise, that is brick. No moving that.
0:33:37 > 0:33:42Another fireplace in here. Lots of light coming in.
0:33:42 > 0:33:46Through to the kitchen. I haven't found anything wrong yet.
0:33:46 > 0:33:51'Not much wrong with the bathroom, either, but it's in an extension.
0:33:51 > 0:33:57'As with many terraced properties, you have to go through the kitchen to reach it. Not ideal.
0:33:57 > 0:34:05'The kitchen is serviceable, though it looks like they started some work, then left it.'
0:34:05 > 0:34:09So, upstairs, two bedrooms. Fairly standard layout.
0:34:09 > 0:34:13What's strange is it seems to be partially renovated.
0:34:13 > 0:34:20You've got new carpet, recently-painted walls, but work to be done removing the old tiles.
0:34:20 > 0:34:25But not bad-sized rooms. You could improve it even more by taking out these cupboards.
0:34:25 > 0:34:31I keep coming back to that guide price. It's a great house for the money!
0:34:31 > 0:34:36'The back bedroom also appears to be OK and overlooks the back yard.
0:34:36 > 0:34:40'The front of the house doesn't seem in desperate need of attention.
0:34:40 > 0:34:47'The windows are all intact and don't forget that guide price of only £36,000. Wow!
0:34:48 > 0:34:52'At the rear, very little of the backyard remains
0:34:52 > 0:34:57'as the kitchen and bathroom extensions left their footprint,
0:34:57 > 0:35:01'but with all this the options here are interesting.'
0:35:01 > 0:35:05So is this place going to make you any money?
0:35:05 > 0:35:11Well, let's talk it through. You buy it at £36,000, do it up, sell it on for maybe £50,000.
0:35:11 > 0:35:15But why would you sell it on? Just do it up and hold it.
0:35:15 > 0:35:17Rent it out and take the money.
0:35:17 > 0:35:22I think that is the strategy that I'd adopt.
0:35:22 > 0:35:26'I reckon the figures should stack up here.
0:35:26 > 0:35:30'If you were to achieve, say, £350 per month rental income,
0:35:30 > 0:35:36'that's an 8% yield on the guide price of £36,000 - a bit more than the banks pay.
0:35:39 > 0:35:41'To get some advice,
0:35:41 > 0:35:47'I asked a local property expert to take a look at this place and give me his opinion.'
0:35:49 > 0:35:54The immediate area is mainly properties owned by landlords and investors.
0:35:54 > 0:36:00With mainly landlord properties, it limits the appeal to owner-occupiers.
0:36:00 > 0:36:03It's in very basic condition.
0:36:03 > 0:36:11The windows possibly need replacing, but there is central heating. Kitchen and bathroom are workable.
0:36:11 > 0:36:13Many landlords would look to let it.
0:36:13 > 0:36:17'What kind of rental income could be earned here?'
0:36:17 > 0:36:21There would be demand for this on the rental market.
0:36:21 > 0:36:26I would anticipate income in the region of £350 per calendar month.
0:36:26 > 0:36:32'In terms of market value, was the guide price of £36,000 a fair reflection of prices here?
0:36:32 > 0:36:36'And how much could it be worth after renovation?'
0:36:36 > 0:36:42In its current condition, I would anticipate this property to be worth in the region of £35,000-£40,000.
0:36:42 > 0:36:48Ceiling price, once done to a good standard, would be in the region of £55,000.
0:36:48 > 0:36:54'There's clearly work to do, but the rental income sounds very encouraging.'
0:36:56 > 0:37:01Well, it's a decent enough little house. Not a load of options,
0:37:01 > 0:37:05but for that guide price, it's a perfect little rental opportunity.
0:37:05 > 0:37:09Let's see who fancied it.
0:37:09 > 0:37:14Lot 56. Mid-terraced house, gas central heating.
0:37:14 > 0:37:1630 to start me?
0:37:16 > 0:37:1925, can I say? Get it going.
0:37:19 > 0:37:2225 I'm bid. Thank you. At £25,000.
0:37:22 > 0:37:2630, can I say now? 30. Thank you. At £30,000.
0:37:26 > 0:37:3035, is it? I'll take one if it helps. The bid's at 30. 31.
0:37:30 > 0:37:3232. 33.
0:37:32 > 0:37:35At £33,000 for Lot 56.
0:37:35 > 0:37:42At £33,000. Are we all done? £34,000. 35, is it?
0:37:42 > 0:37:44At 34. 34 and a half.
0:37:44 > 0:37:4735? 35?
0:37:47 > 0:37:50A half? At £35,000.
0:37:50 > 0:37:53Seated left at 35.
0:37:53 > 0:37:56At 35. I'm selling it at 35. Are we all done?
0:37:56 > 0:37:59At £35,000, first time.
0:37:59 > 0:38:02At 35, second time.
0:38:02 > 0:38:05Third and final time at £35,000.
0:38:06 > 0:38:11- It's yours, sir, well done. - 'The successful bidder at £35,000
0:38:11 > 0:38:15'was Steve, who was at the auction with his son, Paul.
0:38:15 > 0:38:22'19-year-old Paul trained as a motor mechanic, but now hopes to develop property with his dad.
0:38:22 > 0:38:27'Steve, an IT project manager, owns seven other properties.
0:38:30 > 0:38:34'I met Paul back at the house to ask him about their plans.'
0:38:34 > 0:38:39- Paul, good to meet you.- Hello. - Congratulations. A good price!
0:38:39 > 0:38:42It is, yeah. Could be good profit.
0:38:42 > 0:38:45Tell me why you wanted the place.
0:38:45 > 0:38:49Well, basically, we just started off trying to find somewhere to start off
0:38:49 > 0:38:53so I could help him do up the houses, basically.
0:38:53 > 0:38:56What have you been doing so far?
0:38:56 > 0:39:00This is the first property I'm going to be working on,
0:39:00 > 0:39:04so we'll get this done, then there's one round the corner.
0:39:04 > 0:39:10- What have you been doing previously? - Working in warehouses, agency work.
0:39:10 > 0:39:13So your dad has been doing this?
0:39:13 > 0:39:19- Yeah. He's not really got the time. - So you've been drafted in to do the labour.- I have!
0:39:19 > 0:39:22How will it work between you?
0:39:22 > 0:39:29He's still got a full-time job, so I'll be up here in the week, doing it with my dad's mate.
0:39:29 > 0:39:32We should be able to get it done.
0:39:32 > 0:39:38- How will it work financially? - We've not really discussed that yet. He's paying me a weekly rate.
0:39:38 > 0:39:45- I'm not sure what it'll be. - You're very trusting! He won't rip you off.- Hopefully not!
0:39:45 > 0:39:51'I'm sure he won't. This first joint development project for Steve and Paul seems ideal.
0:39:51 > 0:39:56'Steve's provided the funding, but he's busy with his IT work.
0:39:56 > 0:39:59'This will give Paul experience of renovation.
0:39:59 > 0:40:06- 'It should be a win-win. What attracted Paul's dad to this house? - He hasn't been to see it yet.'
0:40:06 > 0:40:10- He hasn't seen it? - No, I came and viewed it for him
0:40:10 > 0:40:16and it's just the project we were looking for. We went to the auction.
0:40:16 > 0:40:19- On your say so.- Yeah.- Fantastic.
0:40:19 > 0:40:25- So tell me what you're going to do. - Carpet it throughout, chimney needs repointing,
0:40:25 > 0:40:29new flooring throughout the kitchen and bathroom, the roof needs redoing.
0:40:29 > 0:40:33And a new bathroom fitted. All the electrics.
0:40:33 > 0:40:36The gas piping needs reconnecting.
0:40:36 > 0:40:41'Paul's dad paid £35,000 for this place.
0:40:41 > 0:40:48'The surveyor's report has indicated a lot of issues that need attention, but Paul's keen to learn new skills.
0:40:48 > 0:40:52'Is that why he recommended the property?'
0:40:52 > 0:40:58- Any idea how much it will cost? - Well, we've got a budget of about £8,000-£9,000.
0:40:58 > 0:41:01So we should do it with that.
0:41:01 > 0:41:04- Hopefully. - And have you got the purse strings?
0:41:04 > 0:41:10- Have you got the chequebook? - No, my dad's got that. He wouldn't let me loose with it.
0:41:10 > 0:41:15- You'll oversee the project.- Yeah. - Looking forward to that?- I am.
0:41:15 > 0:41:19- Will you have anyone to help you? - Yeah, my girlfriend.
0:41:19 > 0:41:22She'll be up a few times a week helping me out.
0:41:22 > 0:41:27'I'm sure all helping hands will be gratefully accepted
0:41:27 > 0:41:30'to refurbish this place Paul's dad bought.
0:41:32 > 0:41:36'Paul's girlfriend's one-year-old son might even lend a hand,
0:41:36 > 0:41:41'but Paul had better keep a watchful eye on his young helper
0:41:41 > 0:41:46'or he could find interesting finger marks on his new walls.'
0:41:46 > 0:41:52- And then, if this goes well, what happens?- We've got another property round the corner to start.
0:41:52 > 0:41:57We'll put the deposit down on another one and keep going.
0:41:57 > 0:42:02- And you'll work with your dad? - Yeah, that's the plan.
0:42:02 > 0:42:07- Well, congratulations. Good luck. We'll see how you get on.- Thanks.
0:42:08 > 0:42:13So a good project for Paul to cut his teeth as a developer on.
0:42:13 > 0:42:18But will they make any money and will Paul be paid the going rate?
0:42:18 > 0:42:20Find out later in the show.
0:42:23 > 0:42:27We're dying to find out what happened to those investors.
0:42:27 > 0:42:32- Are they tearing their hair out? Or cool as cucumbers?- Let's find out.
0:42:32 > 0:42:37'Time now to return to Twickenham where, earlier in the programme,
0:42:37 > 0:42:42'John and Colette paid £400,000 for this dilapidated mid-terrace.
0:42:43 > 0:42:50'They live in the Wirral and John had only seen the house on the internet before the auction.
0:42:50 > 0:42:57'After selling their maintenance company, they only recently got into property developing.
0:42:57 > 0:43:01'They planned to get a team in to restore this place and sell it.
0:43:01 > 0:43:08'Well, five months have passed and the former boarded-up house has been transformed.
0:43:08 > 0:43:11'John and Colette will show us the fantastic results.
0:43:11 > 0:43:18'The kerb appeal has certainly returned with new windows and white paint. Even the bricks are scrubbed.
0:43:20 > 0:43:27'Inside, the living room looks superb, with all that light streaming through the windows.
0:43:27 > 0:43:31'Solid oak flooring is a feature throughout the ground floor.
0:43:31 > 0:43:38'That flooring only stops in the fabulous kitchen, which you'll see later.
0:43:38 > 0:43:43'Upstairs, the lavish makeover continues in the bedroom...
0:43:45 > 0:43:48'and the wonderful bathroom.
0:43:48 > 0:43:52'But taking on a project this big meant starting from scratch.
0:43:52 > 0:43:58'That must have been a problem when they live over 200 miles away, so who did what?'
0:43:58 > 0:44:04Well, my main input was through the colour schemes and setting out of the kitchen area,
0:44:04 > 0:44:10choosing some of the bathroom parts. John did all the work, really.
0:44:10 > 0:44:13He came down quite a lot and stayed in London.
0:44:13 > 0:44:18At the beginning, I had to manage the project and find contractors.
0:44:18 > 0:44:23So we found a good Polish contracting crew. Absolutely brilliant.
0:44:23 > 0:44:26They did an amazing job.
0:44:26 > 0:44:33I did mainly project management. And it went very smoothly. We had a 16-week deadline to do it.
0:44:33 > 0:44:36We done it in 13 weeks.
0:44:36 > 0:44:41'Some going! Unlike a new build, where you start from scratch,
0:44:41 > 0:44:48'this had years of plumbing, wiring and rotten timbers to rip out before new stuff could go in.
0:44:48 > 0:44:51'The kitchen's a perfect example.'
0:44:51 > 0:44:57Everything that we've done in here... One of the big changes is the back door used to be here.
0:44:57 > 0:45:01We've now took that out and put the back door over here.
0:45:01 > 0:45:08The reason for that is so you can get a nice table and chairs in this area.
0:45:08 > 0:45:10So it can be a kitchen diner.
0:45:10 > 0:45:15The other thing that has changed is we've tiled the floor.
0:45:15 > 0:45:18We've put all new lighting in the ceiling.
0:45:18 > 0:45:23We've put all new units all round and completely re-tiled it.
0:45:23 > 0:45:29'Of course, it still looks out onto the back garden where decking has been laid.
0:45:29 > 0:45:34'It will soften up with pot plants, but I'd have left more grass.
0:45:34 > 0:45:42'But, like the front, the brickwork has been cleaned, windows replaced and there's a new door.
0:45:45 > 0:45:51'Upstairs, they retained the bay window in the back bedroom, but they're new double-glazed units
0:45:51 > 0:45:54'and they've replumbed.'
0:45:54 > 0:45:59What we did in this room was there was a wall across here.
0:45:59 > 0:46:02This was the main master bedroom.
0:46:02 > 0:46:07We wanted an ensuite in here. A big area here was the hall,
0:46:07 > 0:46:13so we moved the wall further back and took a little from that room, which was the middle bedroom.
0:46:13 > 0:46:18That's allowed us to put a huge ensuite in. That's worked very well.
0:46:18 > 0:46:22It's made no difference to the house. We still have three bedrooms.
0:46:22 > 0:46:30'With three bedrooms, one ensuite and a family bathroom, John decided against the loft conversion.
0:46:30 > 0:46:38'So time to talk money. How much has this impressive refurbishment cost, on top of the £400,000 at auction?
0:46:38 > 0:46:43'Remember, he and Colette had set a budget of £50,000-£70,000.'
0:46:43 > 0:46:49The budget has worked quite within what we thought.
0:46:49 > 0:46:53Basically, what we have spent on the actual house, about £70,000,
0:46:53 > 0:46:57but also we've got Stamp Duty that was over £15,000
0:46:57 > 0:47:01and £5,000 for legal fees, buying, selling, that sort of stuff.
0:47:01 > 0:47:08So 490 is where I've got up to now on what we've spent to get the whole house complete.
0:47:10 > 0:47:14'Let's get some expert advice from two local estate agents.'
0:47:22 > 0:47:26The house is beautiful. It's nice to see that a developer's come in
0:47:26 > 0:47:29and really put their stamp on it.
0:47:29 > 0:47:33The choice to keep it as a house was the right thing to do.
0:47:33 > 0:47:38There's a lack of housing in this area. Family homes are in demand.
0:47:38 > 0:47:40Flats would have been a mistake.
0:47:40 > 0:47:45I do particularly like the kitchen. They've been very brave with colours
0:47:45 > 0:47:51but it does match in with the floor and I think people will walk in and think, "Mm, I like that."
0:47:51 > 0:47:55I love the bay. I wasn't sure when he said he'd move the door,
0:47:55 > 0:47:58but it's fantastic, and the colours.
0:47:58 > 0:48:02'It's lovely to see a dilapidated property brought back to life.
0:48:02 > 0:48:09'There could be quite a bit of interest if it was put up for sale, but what about renting it out?'
0:48:09 > 0:48:13Rental's very busy round here. It's a great location.
0:48:13 > 0:48:16You'd get £1,800 per calendar month.
0:48:16 > 0:48:21You'd let it quite easily. Probably looking at £1,700 per calendar month.
0:48:21 > 0:48:29- 'With the potential to generate that sort of income, might they be persuaded to let it out?'- No.
0:48:29 > 0:48:35The amounts we've invested in it, the rental return wouldn't be enough for what we need to do.
0:48:35 > 0:48:39So we're going to put it up for sale straight away.
0:48:39 > 0:48:43'Even though the house was in a terrible state,
0:48:43 > 0:48:48'don't forget John specifically chose it for the return he wanted.
0:48:48 > 0:48:55'He paid £400,000 at auction and he's estimated his costs at £90,000.
0:48:55 > 0:49:00'So is it now worth more than £490,000?'
0:49:00 > 0:49:08The property could go on the market for sale at £575,000, to achieve anything upwards of £550,000.
0:49:08 > 0:49:12I'd put it on the market at £650,000 and look to get very close to.
0:49:12 > 0:49:16There's a bit of a difference there and it just shows the area.
0:49:16 > 0:49:21We've looked at a house up the road for £800,000.
0:49:21 > 0:49:27The 650 would suit us fine. That's what we'll put it up for and I believe we'll get.
0:49:27 > 0:49:33'Even if they achieve the middle of those valuations, say £590,000,
0:49:33 > 0:49:37'that would represent £100,000 gross profit in 5 months.
0:49:37 > 0:49:43'So what's next? Another property around here or back to the Wirral?'
0:49:43 > 0:49:50We've already eyed up a place in Fulham so we're going to go and have a look at it on Saturday.
0:49:50 > 0:49:56We'll go to the next auction and hopefully get it and get on with the next project.
0:49:56 > 0:49:59- Onwards and upwards, I think.- Yeah.
0:49:59 > 0:50:05- If there's any footballers out there...- We're coming your way! - We're coming your way, yeah!
0:50:05 > 0:50:12'John and Colette certainly look to have scored a winner in Twickenham and they didn't need extra time!'
0:50:15 > 0:50:19'We return now to this mid-terrace property in Hanley, Stoke-on-Trent,
0:50:19 > 0:50:26'where, earlier in the programme, Steve, a freelance IT project manager, paid £35,000 for it.
0:50:26 > 0:50:30'His son, Paul, was going to do a lot of the renovation.
0:50:30 > 0:50:36'Although he'd trained as a motor mechanic, he'd now decided to work with his dad,
0:50:36 > 0:50:38'developing properties.
0:50:38 > 0:50:46'The refurbishment's taken four months. Both Paul and Steve met us to show us the results.
0:50:46 > 0:50:50'The new windows and front door are a promising start.
0:50:50 > 0:50:57'Inside, in the living room, the big stone fireplace is gone. That rubble must have been a pain!
0:50:57 > 0:51:03'The neutral colour scheme continues into the dining room where, again, the fireplace has been removed.
0:51:03 > 0:51:09'Beyond the kitchen, at the back, the bathroom's been retiled, but the suite remains.
0:51:09 > 0:51:14'It's been Paul's first development and it sounds like he's put in more hours than his dad!'
0:51:14 > 0:51:20Since we bought it, I've been here during the week and my dad's been up at weekends.
0:51:20 > 0:51:25It's taken four months to get to this stage.
0:51:25 > 0:51:32Paul came down just one or two days a week, and I came with my friend John on Saturdays.
0:51:32 > 0:51:39But there was more work, so Paul came down all week and we did Saturdays and Sundays.
0:51:39 > 0:51:43We've almost finished now and it'll be ready for letting out.
0:51:43 > 0:51:49'This has been an invaluable opportunity for Paul to see what it takes
0:51:49 > 0:51:51'to renovate a place like this.'
0:51:51 > 0:51:59Originally, it was plastic tiles on the walls. Once we removed them, the plasterboard was damp and soggy.
0:51:59 > 0:52:06So we took all that off and we had to get a few builders in to see what they thought.
0:52:06 > 0:52:10We had a quote to rebuild the extension,
0:52:10 > 0:52:17but the prices were too high, so me and my dad's mate John made a new cavity,
0:52:17 > 0:52:25put the plasterboard on, plastered it, redone the roof to stop leaks and it turned out OK.
0:52:27 > 0:52:33'With eight properties in his portfolio, Paul's dad Steve has picked up new skills on each one
0:52:33 > 0:52:35'and he's getting confident.
0:52:35 > 0:52:41'He wasn't afraid to remove any obstruction to gain extra valuable space in the kitchen.'
0:52:41 > 0:52:46This is where the chimney was before. It came out to about here.
0:52:46 > 0:52:50As you can see, it was taking up a lot of space in the kitchen.
0:52:50 > 0:52:57So we decided we'd knock it down. It was a little bit scary as all the bricks came tumbling down.
0:52:57 > 0:53:04So we put three lintels, concrete lintels, in the ceiling here,
0:53:04 > 0:53:08to support the building. It's created a lot more space.
0:53:08 > 0:53:13We've now got a long galley kitchen. A lot better than it was before.
0:53:13 > 0:53:18'Paul has left the structural stuff to his dad, while he concentrated on the decorating,
0:53:18 > 0:53:23'brushing up skills he'll need on other properties.'
0:53:23 > 0:53:30I'm going back to college in September to do a part-time painting and decorating course.
0:53:30 > 0:53:33I can earn money at the same time.
0:53:34 > 0:53:42'How much has the refurbishment cost on top of the 35 grand paid for the property at auction?'
0:53:42 > 0:53:47- Our original budget was £8,500. - And we've actually spent about £7,500,
0:53:47 > 0:53:50so we've come under budget.
0:53:50 > 0:53:55The only major cost has been the double glazing and the plastering work, really.
0:53:55 > 0:53:59I've had a few friends to keep the cost down.
0:53:59 > 0:54:05other than that, we did it ourselves. It's been really enjoyable, but hard work.
0:54:05 > 0:54:09You're working all week, then Saturdays and Sundays here.
0:54:09 > 0:54:15I've got a property round the corner that we need to renovate, so we know what we've let ourselves in for!
0:54:15 > 0:54:23- And Paul's got one in Wales to start on next week. - 'No wonder Steve feels tired!
0:54:25 > 0:54:29'Anyway, he's left Paul to find out what two local estate agents think
0:54:29 > 0:54:32'of this property.'
0:54:32 > 0:54:38The standard of finish is quite basic. It could have been done to a slightly higher standard.
0:54:38 > 0:54:43There's a lot of natural light coming into the house.
0:54:43 > 0:54:50It creates a lot of space. It's been decorated to quite a good standard,
0:54:50 > 0:54:53although it could have been to a higher standard.
0:54:53 > 0:55:01There's nothing additional structurally that can be improved that would make sense financially.
0:55:01 > 0:55:06It just needs finishing off properly to get the top valuation figure.
0:55:06 > 0:55:11I'd recommend a rental price of £395 per calendar month.
0:55:11 > 0:55:16The likely rental income would be in the region of £350.
0:55:16 > 0:55:22That's what I expected, £350. £395 is a bit of a surprise to us.
0:55:22 > 0:55:26I'm sure my dad will be quite happy with the results of that.
0:55:26 > 0:55:31We've had someone in from across the road interested in renting
0:55:31 > 0:55:36and they've had a look round and seemed keen to move in quite quickly.
0:55:36 > 0:55:41'It sounds like renting will be no problem. But how much is it worth?
0:55:41 > 0:55:45'Steve paid £35,000 on auction day and they've spent £7,500,
0:55:45 > 0:55:50'making a £42,500 total outlay.'
0:55:50 > 0:55:55I'd recommend a valuation price of £59,950.
0:55:55 > 0:56:00I would imagine this property to be placed on the market at £55,000.
0:56:00 > 0:56:07'Goodness. Even the lower valuation of £55,000 would mean a minimum gross profit of £12,000
0:56:07 > 0:56:10'before the usual deductions.'
0:56:12 > 0:56:19Yeah, that's great. My dad was expecting about £50,000, so it's a bit above what we thought.
0:56:19 > 0:56:24Our intention will still be to rent for a while and maybe later sell it.
0:56:24 > 0:56:28'Paul's worked hard on this, his first project with his dad.
0:56:28 > 0:56:34'Is he pleased to have changed his job from working in a warehouse to buying at an auction house?'
0:56:34 > 0:56:37Yeah, this is a new career for me.
0:56:37 > 0:56:42Joining college in September, so I'll get a trade and go from there.
0:56:42 > 0:56:50We've done good as a team. Didn't expect to be as good as we were, but it's been all right.
0:56:54 > 0:57:00- Join us for more pleasures and pitfalls of property developing next time.- We will see you then.
0:57:00 > 0:57:02- Goodbye.- Goodbye.
0:57:10 > 0:57:14Subtitles by Subtext for Red Bee Media Ltd - 2010
0:57:17 > 0:57:20Email subtitling@bbc.co.uk