0:00:02 > 0:00:04There are two things every property investor needs.
0:00:04 > 0:00:07Cash to get started and some vision to see it through.
0:00:07 > 0:00:10If you're lucky enough to have both of these, then you could
0:00:10 > 0:00:16kick-start your dreams by going to the auction and buying your house under the hammer.
0:00:42 > 0:00:46Property auctions happen all year round, up and down the country.
0:00:46 > 0:00:52Yes, if you fancy yourself as a developer, you can always go along and see how it all works.
0:00:52 > 0:00:56So let's take a look at and see who went and bought at the auctions today.
0:00:58 > 0:01:02In Derbyshire, first impressions aren't always what they're cracked up to be.
0:01:02 > 0:01:06Well, all in all it was fine until I saw that.
0:01:06 > 0:01:10In Gravesend, Kent, we catch up with what looked like
0:01:10 > 0:01:14a perfect development site when I first saw it in 2007.
0:01:14 > 0:01:16I could quite comfortably fit a house on this plot.
0:01:19 > 0:01:23And have I found a real show stopper in Staffordshire?
0:01:23 > 0:01:27Ladies and gentlemen, I present to you the kitchen.
0:01:28 > 0:01:31All these properties have been sold at auction
0:01:31 > 0:01:35and we'll find out who bought them and what they paid for them when they went under the hammer.
0:01:35 > 0:01:36It's your lot, so well done.
0:01:40 > 0:01:43It might not be full of chocolate-box houses,
0:01:43 > 0:01:47but with Thorntons being one of the main employers in the area,
0:01:47 > 0:01:51Belper in Derbyshire has a wide selection of properties to choose from.
0:01:51 > 0:01:54The property I'm here to see sounds very appealing, three bedrooms,
0:01:54 > 0:02:00had a guide price of £69,000, which for Belper I think is pretty good.
0:02:00 > 0:02:01However...
0:02:01 > 0:02:04the first thing that I am noticing, access is a bit of a problem.
0:02:04 > 0:02:07To get to the house you have to walk down this bit of a narrow pathway
0:02:07 > 0:02:11which means that not only getting here, but when you come to do
0:02:11 > 0:02:14things like building work - could be a bit of an issue.
0:02:14 > 0:02:18Now it is described as a semi-detached.
0:02:18 > 0:02:20But to my mind, that's not a semi-detached,
0:02:20 > 0:02:23that's a double-fronted end of terrace.
0:02:23 > 0:02:26Whatever. Let's find out what's in store behind the door.
0:02:26 > 0:02:31It's obvious from the off that this property is a bit of a curate's egg.
0:02:31 > 0:02:35Good that it is set back from the road with a porch and decent frontage,
0:02:35 > 0:02:37but less good that there's no off-street parking
0:02:37 > 0:02:41and finding somewhere to park round here might be a bit tricky.
0:02:41 > 0:02:44Also its position means that shopping and, initially, building materials
0:02:44 > 0:02:46will need to be carried a long way.
0:02:46 > 0:02:51Whether or not you like that specific porch, having one of some description is a good thing,
0:02:51 > 0:02:56otherwise it is straight into the lounge with all the cold that that would bring.
0:02:56 > 0:02:59In terms of the lounge itself, well, it is sort of open-plan.
0:02:59 > 0:03:06Not a bad sized space, although I'm getting a sense straightaway that the house is a little bit tired.
0:03:06 > 0:03:11That bit there, over this side here, there's a gas fire, the stairs up to the bedrooms.
0:03:11 > 0:03:14For a small house actually, it has a nice open feel,
0:03:14 > 0:03:17created by this obviously knocked-through area here
0:03:17 > 0:03:21which is nice to see and then through into
0:03:21 > 0:03:24the kitchen straightaway, I don't like the look of that.
0:03:24 > 0:03:26Look at that.
0:03:26 > 0:03:30Nasty bit of rot going on there, but in terms of space again, it is not bad.
0:03:30 > 0:03:34One thing it does lack is kitchen units, so you'd certainly want to do something there.
0:03:35 > 0:03:38At the moment you've got this lovely old cooker...
0:03:38 > 0:03:40CRASHING AND RATTLING
0:03:40 > 0:03:41..and a sink!
0:03:41 > 0:03:43Refurbishment required.
0:03:43 > 0:03:47All in all, not bad.
0:03:47 > 0:03:50But it is certainly going to cost a fair bit. To start with,
0:03:50 > 0:03:54there's no central heating and that's left it feeling damp.
0:03:54 > 0:03:57That may have damaged the floorboards and skirting.
0:03:57 > 0:03:59Also the windows will need to be replaced
0:03:59 > 0:04:01and electrics certainly need upgrading.
0:04:01 > 0:04:07Then you've got to put in a new kitchen, so already I can see this is a considerable project.
0:04:07 > 0:04:11Well, coming upstairs the place seems to deteriorate quite a lot.
0:04:11 > 0:04:13I mean...
0:04:13 > 0:04:17for once woodchip paper that won't take too much to strip it off.
0:04:17 > 0:04:20What have we got? Three bedrooms which is good news.
0:04:20 > 0:04:24One bedroom there and an upstairs loo which is a really good plus point.
0:04:24 > 0:04:28Slight negative on the second bedroom is that you get access to it through
0:04:28 > 0:04:32this bedroom here. But it's a good size, so all in all...
0:04:34 > 0:04:38Well, all in all it WAS fine until I saw that.
0:04:38 > 0:04:40That's not good. Look at that crack.
0:04:40 > 0:04:44It goes up through there and it goes all the way along there.
0:04:44 > 0:04:45And, oh my word...
0:04:45 > 0:04:48Look what's happening on this window!
0:04:48 > 0:04:49It's at a slope
0:04:49 > 0:04:54and my guess is that the whole of this corner of the building
0:04:54 > 0:04:56is sinking.
0:04:56 > 0:04:58I need to investigate.
0:04:58 > 0:05:05I was getting a good vibe from this property, but that has now turned to a bad feeling.
0:05:05 > 0:05:09Along with more signs of damp, I'm beginning to think this place has some serious problems.
0:05:09 > 0:05:13Maybe a closer look outside will give me more clues.
0:05:14 > 0:05:18OK, let's see what we can find.
0:05:18 > 0:05:19Yes, that's not good.
0:05:19 > 0:05:23That is the other side of that wall with the huge crack on
0:05:23 > 0:05:26You can see the bricks are a little bit higgledy-piggledy.
0:05:26 > 0:05:28They've got some new pointing in there.
0:05:28 > 0:05:30There obviously has been an issue.
0:05:30 > 0:05:34My guess is it is slightly historic, but I also think it might be
0:05:34 > 0:05:39on the move still and I reckon the reason is the outside loo there.
0:05:39 > 0:05:42You can probably hear, it's dripping. You can see the water coming out.
0:05:42 > 0:05:46That's probably been doing that for a good few months, maybe years.
0:05:46 > 0:05:50That will be making the ground around here completely sodden.
0:05:50 > 0:05:52That's not good for the foundations.
0:05:52 > 0:05:56So it's probably adding to existing problems that were here.
0:05:56 > 0:05:59Again, that means the news is good and bad.
0:05:59 > 0:06:02Good in the sense that if it is water leakage, it can be stopped,
0:06:02 > 0:06:05but bad in that you have no idea how much damage has already been done
0:06:05 > 0:06:09without extensive exploratory work.
0:06:09 > 0:06:13So I'm not sure about this house and I'd suggest that it's not one for the unwary.
0:06:13 > 0:06:16Could someone do all this necessary work
0:06:16 > 0:06:18and still make a decent return?
0:06:18 > 0:06:20What does a local estate agent think?
0:06:20 > 0:06:22I like the layout upstairs.
0:06:22 > 0:06:25The bedrooms are all a good size.
0:06:25 > 0:06:26The bathroom's fine.
0:06:26 > 0:06:30It looks like there may be a few structural issues.
0:06:30 > 0:06:33There is no central heating, so there's some work to be done.
0:06:33 > 0:06:36At a guess I would say you're looking at £20,000 to £30,000
0:06:36 > 0:06:39to get this house that was guided at £69,000 back on its feet.
0:06:39 > 0:06:42So what could be the potential profit here?
0:06:42 > 0:06:46Once the property's renovated I would expect to achieve £130,000.
0:06:46 > 0:06:50Should there be parking, maybe another £10,000 or £15,000 to add to that.
0:06:50 > 0:06:55For rental purposes I would imagine that you could achieve £500 per calendar month.
0:06:55 > 0:07:00So it may be worth the time and effort, but I'm still wary of those unknowns.
0:07:00 > 0:07:05It wouldn't take that much to see this turn from a profit-making venture into a loss.
0:07:05 > 0:07:10Well, access, layout and the potential subsidence issues aside,
0:07:10 > 0:07:13this is a really lovely house.
0:07:13 > 0:07:16I really like the location, so close to the centre of Belper,
0:07:16 > 0:07:19and it's quite private with this garden.
0:07:19 > 0:07:23I'm sure for £69,000 somebody really fancied when it went under the hammer.
0:07:27 > 0:07:30Lot number 11. It's a double-fronted
0:07:30 > 0:07:33three-bedroomed semi-detached house.
0:07:34 > 0:07:38Who's got £70,000? 70, I have.
0:07:38 > 0:07:42£70,000 is the opening bid.
0:07:42 > 0:07:45£71,000 in the centre. 72 is bid.
0:07:45 > 0:07:5073, 74, 75, 76,
0:07:50 > 0:07:5377, 78,
0:07:53 > 0:07:5679, 80,000.
0:07:56 > 0:07:59£80,000. 500 help you?
0:07:59 > 0:08:01At £80,000 at the back of the room.
0:08:01 > 0:08:03The bids are yours.
0:08:03 > 0:08:06We're selling... 81, 82,
0:08:06 > 0:08:1082,000, 83 somewhere else?
0:08:10 > 0:08:13At £82,000 then, all done with it?
0:08:13 > 0:08:1583,
0:08:15 > 0:08:1984, 85, 86,
0:08:19 > 0:08:2087, 88.
0:08:20 > 0:08:2488, 89.
0:08:24 > 0:08:29At £89,000, £500, no? £89,500.
0:08:29 > 0:08:32Treat you the same, 90,000, you've come to buy it.
0:08:32 > 0:08:3890,000. £90,000 for Brookside.
0:08:38 > 0:08:41Finish and done. Once, twice, third time and a half...
0:08:41 > 0:08:46£90,500, not sold until the hammer is down. 91.
0:08:46 > 0:08:48Is that it this time?
0:08:48 > 0:08:53£91,000, are you sure?
0:08:53 > 0:08:55Sold at £91,000, thank you.
0:08:58 > 0:09:04So for £91,000 - over £20,000 above the guide price - the new owners
0:09:04 > 0:09:08of the Belper terraced house are husband and wife Paul and Alison.
0:09:08 > 0:09:11They joined me there, along with their baby daughter.
0:09:16 > 0:09:19- Paul, Alison, lovely to meet you both. Who is this?- This is Bridie.
0:09:19 > 0:09:23- Hello Bridie. How old is she? - She's five-and-a-half months old.
0:09:23 > 0:09:26- Look at those eyes. - Yes, she is loving this.- Wow.
0:09:26 > 0:09:29So why have you bought the house?
0:09:29 > 0:09:35Well, we've done up our own chapel, we bought a chapel at auction, about four-and-a-half years ago
0:09:35 > 0:09:39and we really enjoyed doing it up. We're not quite finished yet.
0:09:39 > 0:09:43And we've been talking about starting to do up properties ourselves,
0:09:43 > 0:09:47- as a small business and this is our first one.- Right, so what kind of experience do you have?
0:09:47 > 0:09:50I'm a builder. I've been building for probably about 15 years.
0:09:50 > 0:09:55I'm quite used to doing properties up - from structural
0:09:55 > 0:09:59to refurbishment and everything so this, I think this is an easy one.
0:09:59 > 0:10:02- Oh, really?- Yeah.- What about you Alison, what do you do?
0:10:02 > 0:10:06- Stupid question really!- Well, at the moment I'm quite busy with Bridie,
0:10:06 > 0:10:10but I work at Quad, which is a new art centre down in Derby.
0:10:10 > 0:10:15- I'm on maternity leave at the moment and I'll be going back in the New Year sometime.- Right.
0:10:15 > 0:10:18So this was a really good timing for us, whilst I was still on maternity leave
0:10:18 > 0:10:22so I can do quite a lot of the project management before I go back to work hopefully.
0:10:25 > 0:10:28Paul and Alison live not far from this house.
0:10:28 > 0:10:31Paul hopes to fit the work on this one around other jobs.
0:10:31 > 0:10:34Alison, maybe optimistically, plans to help out,
0:10:34 > 0:10:38while Bridie, no doubt, shouts instructions from her pram.
0:10:40 > 0:10:42- So why this house then? - We felt it was a lovely property.
0:10:42 > 0:10:45It's got loads of character. It's original features.
0:10:45 > 0:10:49It's the right size. A really nice location as well. It just felt right.
0:10:49 > 0:10:52As soon as we saw it we kind of felt it was the right one for us.
0:10:52 > 0:10:56A quick turn around as well, I think we can do on this, which is important.
0:10:56 > 0:10:58From a builder's point of view, what do you think of it?
0:10:58 > 0:11:04Initially, obviously you look at the property, it has been knocked around a little bit in its time.
0:11:04 > 0:11:08Obviously, there are some quite big cracks in the back, just normal structural things.
0:11:08 > 0:11:10Normal structural things?
0:11:10 > 0:11:16- Well.- How about abnormal structural things?- Every house has cracks. - Not like that!
0:11:16 > 0:11:19He told me not to worry about it.
0:11:19 > 0:11:22We've done a lot of structural work in the business.
0:11:22 > 0:11:25I'm used to propping buildings up or taking bits away.
0:11:25 > 0:11:28So I'm not overly worried about that. I think
0:11:28 > 0:11:30we can sort that out quite easily.
0:11:30 > 0:11:35Bridie disagrees. She's going, "Dad, it might be more trouble than you think."
0:11:35 > 0:11:39But having seen what they had to do with that chapel conversion,
0:11:39 > 0:11:42I can see why the cracks here might not faze Paul.
0:11:42 > 0:11:45At worst some underpinning might be needed, or they could
0:11:45 > 0:11:51remove that corner and start again, but that's just the beginning of it.
0:11:51 > 0:11:53Obviously upstairs there's three bedrooms,
0:11:53 > 0:11:56but one you have to go through to access the other bedroom.
0:11:56 > 0:11:59So we're going to look at the layout upstairs
0:11:59 > 0:12:02and make a hallway so you can access all three bedrooms.
0:12:02 > 0:12:07The bathroom needs to be made... There's not a lot of change in the bathroom basically.
0:12:07 > 0:12:11Downstairs, we are still not too sure whether to convert it
0:12:11 > 0:12:14into a kitchen/diner, to reinstate this wall here.
0:12:14 > 0:12:18We need to look at the finances of that really.
0:12:18 > 0:12:21Roughly how long do you think it's going to take to get it sorted?
0:12:21 > 0:12:25We're saying between six and eight weeks, that's the ideal.
0:12:25 > 0:12:28- I thought we said 12 weeks.- Huh? - 12 weeks.- Oh 12 weeks then!
0:12:28 > 0:12:31I thought it was the other way round.
0:12:31 > 0:12:33- You should be pushing.- 12 weeks!
0:12:33 > 0:12:35OK, we're going to do 12 weeks.
0:12:35 > 0:12:37And cost?
0:12:37 > 0:12:40We've got a budget of £22,000. That's all in.
0:12:40 > 0:12:44I think it is about time Bridie went off and had a bit of milk.
0:12:44 > 0:12:46I think so. I think it's time for bed.
0:12:46 > 0:12:48And you need to get on with your building.
0:12:48 > 0:12:52- Six weeks.- Exactly. Lovely to meet you both
0:12:52 > 0:12:55and take care and good luck with it. Nice to meet you, sunbeam!
0:12:55 > 0:12:58- Good little girl. - Next time she'll be quieter.
0:12:58 > 0:12:59I don't care. That's fine!
0:12:59 > 0:13:01- Good luck with it.- Thank you.
0:13:03 > 0:13:07# Baby, baby don't cry
0:13:07 > 0:13:12# Baby, baby don't cry... #
0:13:12 > 0:13:15Well, with Paul's experience
0:13:15 > 0:13:18and baby Bridie's help, maybe this will be child's play.
0:13:18 > 0:13:23However, for most people I think that crack would scare them senseless.
0:13:23 > 0:13:26Are they going to discover it's worse than they imagine?
0:13:26 > 0:13:31You can find out how Alison and family get on later in the show.
0:13:35 > 0:13:38Back in 2007, Gravesend in Kent was all revved up for
0:13:38 > 0:13:42a property boom and all kinds of properties were up for auction.
0:13:42 > 0:13:46This is Alexandra Road and the auction catalogue tells me
0:13:46 > 0:13:50the lot that I've come to see is situated in a nice residential area.
0:13:50 > 0:13:57It's got possible development potential and the guide price £50 to £55,000.
0:13:57 > 0:13:59So what's the catch?
0:13:59 > 0:14:02It is a lovely pair of garages!
0:14:05 > 0:14:08If you can see through the oil cans and dirty rags,
0:14:08 > 0:14:14garages can make valuable assets, both for parking cars or storage.
0:14:14 > 0:14:18But with these two garages and surrounding land,
0:14:18 > 0:14:21there's a more intriguing story.
0:14:21 > 0:14:26You can really see that this is the last available piece of land to develop.
0:14:26 > 0:14:30Houses have just sprung up all around these two garages here,
0:14:30 > 0:14:34and I think the council would look favourably on developers planning to build here.
0:14:34 > 0:14:37You can only improve the look of this road and,
0:14:37 > 0:14:39with houses going for £130,000 each,
0:14:39 > 0:14:42your bank balance could look just as attractive.
0:14:44 > 0:14:48But there is one thing stopping this idea getting into top gear.
0:14:48 > 0:14:52The fact that the garages don't come with any planning permission.
0:14:52 > 0:14:57So whoever buys them will have to chance their luck with the local planning office.
0:14:57 > 0:15:02It is risky, but with risk can come reward.
0:15:02 > 0:15:07Now this site measures 7.5 metres by 24.8.
0:15:07 > 0:15:11It is sizeable and my guess is you could quite comfortably fit
0:15:11 > 0:15:13a house on this plot,
0:15:13 > 0:15:16or if you really want to cash in, how about two?
0:15:16 > 0:15:21House prices in the area range from £130-£180,000
0:15:21 > 0:15:25for a three-bed and £190-£200,000 for a four-bed.
0:15:25 > 0:15:30So even with build costs, this lot, that was guided at just £50-£55,000,
0:15:30 > 0:15:34was sure to get property developers' pulses racing.
0:15:34 > 0:15:41With 25,000 new houses and flats being built over the next few years in and around this area of Kent,
0:15:41 > 0:15:43things look very good indeed for this plot.
0:15:43 > 0:15:47Let's just see who feels the same way as we head to auction.
0:15:50 > 0:15:54Lot 64 is the garages and yard
0:15:54 > 0:15:57at Alexander Road in Gravesend. Start me at 45,
0:15:57 > 0:15:59I'm not going less than that. 45,
0:15:59 > 0:16:03I'm obliged, I'm under way. £45,000 I'm bid. 45 I've got.
0:16:03 > 0:16:06Now 50. £50,000 I've got. And 55 now.
0:16:06 > 0:16:12£55,000. At £50,000 I'm bid and 55 I'm looking for,
0:16:12 > 0:16:14I'll take 52 if it helps.
0:16:14 > 0:16:1552 I've got.
0:16:15 > 0:16:1855 I'm looking for.
0:16:18 > 0:16:20- Are we all done at 52,000?- 54.
0:16:20 > 0:16:2454 I've got. 55, it's against you both at the back.
0:16:24 > 0:16:2855 I'm looking for. 55. I'll take another bid if it helps.
0:16:28 > 0:16:31Even if it's a half, 54-and-a-half I've got.
0:16:31 > 0:16:3355 it's against him. 55 I want.
0:16:33 > 0:16:3555 I'm looking for.
0:16:35 > 0:16:37Is he going to bid?
0:16:37 > 0:16:4355 I've got. Another half to you. Again you've made it once, do you want to make it again, 55-and-a-half?
0:16:43 > 0:16:46At £55,000 I've got and 55-and-a-half I'm looking for.
0:16:46 > 0:16:48Are we all done at £55,000?
0:16:48 > 0:16:49Because I'm going to sell it.
0:16:49 > 0:16:5355-and-a-half in the room again.
0:16:53 > 0:16:5556 gets it. 56, against you at back.
0:16:55 > 0:16:5956 and 57. And 58,
0:16:59 > 0:17:03we're going to get going on it now. £58,000.
0:17:04 > 0:17:07Go on, one more he says!
0:17:07 > 0:17:1158, I've got on the phone. 59 if you like. Make it 60, £60,000.
0:17:11 > 0:17:17In the room, we're going to sell it. 60,000 I'm looking for.
0:17:17 > 0:17:2260 I've got, make it 61. 61 and 62.
0:17:22 > 0:17:2562, 62, 62. You don't want it?
0:17:25 > 0:17:2861 then I've got. 62 at the back if you like.
0:17:28 > 0:17:35It's in the room. We're going to sell it for £61,000 if you're all done. For the first time at £61,000.
0:17:35 > 0:17:38Second time at £61,000 if you're sure you're all done.
0:17:38 > 0:17:40Third and final time.
0:17:40 > 0:17:42It's yours, sir, for £61,000, well done.
0:17:42 > 0:17:49The winning bidder is Steve, a local builder, and this is his first property development venture.
0:17:53 > 0:18:00He remembers the garages from his childhood and thinks they used to house an old ice-cream van.
0:18:00 > 0:18:05But flights of nostalgia aside, things have got serious for Steve.
0:18:05 > 0:18:10He's raised the money for buying the garages by re-mortgaging the house he shares with his partner.
0:18:17 > 0:18:20Steve, did you enjoy the auction process?
0:18:20 > 0:18:24It was a bit nerve-racking. I started bidding towards the end
0:18:24 > 0:18:28and luckily enough it went just over the asking price, which was really good news.
0:18:28 > 0:18:32- £61,000?- 61.- Were you prepared?
0:18:32 > 0:18:38- We was prepared to go higher than that. I don't know if I should tell you how much.- I want to know!
0:18:38 > 0:18:41- 70.- You were going to go to 70 for a pair of old garages?!
0:18:41 > 0:18:48I know. 70 we thought was realistic, but yeah, luckily enough I got them for 61 in the end. Really pleased.
0:18:48 > 0:18:53What are you going to do here with these old garages?
0:18:53 > 0:18:58The plan is two semi-detached cottages. That's Plan A.
0:18:58 > 0:19:04Or if failing that, a detached property, possibly four bedrooms.
0:19:04 > 0:19:07It definitely lends itself to some sort of dwelling.
0:19:07 > 0:19:10I mean, these totally look out of place in the road.
0:19:10 > 0:19:13Exactly. I think it is the last plot to be developed in the area
0:19:13 > 0:19:14and we've picked it up.
0:19:14 > 0:19:17So, yeah, really fortunate.
0:19:17 > 0:19:20So what's your knowledge of building property?
0:19:20 > 0:19:23I've been in the building game really all my life.
0:19:23 > 0:19:29I started off when I was a kid, labouring on sites and stuff and just that's what I've done over the years.
0:19:29 > 0:19:31So I picked it up as I went along sort of thing.
0:19:31 > 0:19:34For how many years have you been building?
0:19:34 > 0:19:37I'm going to show my age now - about 25 years.
0:19:37 > 0:19:42I just thought it is about time I sort of done something for myself now,
0:19:42 > 0:19:45you know, I want to earn the money out of it and so here we are.
0:19:45 > 0:19:48How well do you know this area and this site in particular?
0:19:48 > 0:19:51I know the area fairly well. I was born in Gravesend.
0:19:51 > 0:19:54You must have driven past these garages for many years.
0:19:54 > 0:20:00- Yes.- Did you ever think, "They are going to be mine one day, I'm going to have two big houses there."
0:20:00 > 0:20:02No, I just thought, "What a dive."
0:20:02 > 0:20:04HE LAUGHS
0:20:04 > 0:20:05A dive? I suppose it is a bit.
0:20:05 > 0:20:09The garden is never going to win a Gravesend In Bloom competition,
0:20:09 > 0:20:11but I'm sure the neighbours
0:20:11 > 0:20:14will be glad something is finally being done about the space.
0:20:14 > 0:20:18Still I'm a bit worried about some of Steve's plans,
0:20:18 > 0:20:21because he seems to be underestimating
0:20:21 > 0:20:24how long planning applications take.
0:20:24 > 0:20:30Hanging around for services, stuff like that, planning permission et cetera, all takes time.
0:20:30 > 0:20:36Yeah, we've taken that into account and hopefully sort of start building
0:20:36 > 0:20:39in two months, possibly ten weeks' time.
0:20:39 > 0:20:42'Two months? He'll be lucky!
0:20:42 > 0:20:45'Is his budget more realistic?'
0:20:45 > 0:20:50- So you've spent 60 on your actual plot here.- Yeah. - What's your budget for the build?
0:20:50 > 0:20:56If Plan A goes ahead, i.e. the two cottages,
0:20:56 > 0:21:00probably about 100,000 for the whole build.
0:21:00 > 0:21:06The single dwelling, possibly 70 to 80, around that figure.
0:21:06 > 0:21:09Both of these options will give him a decent profit.
0:21:09 > 0:21:16One problem with building next to long-established houses is that both sets of neighbours
0:21:16 > 0:21:21can often be upset by the noise, dust and general disturbance that a building site creates.
0:21:21 > 0:21:25But Steve has already begun discussions with the neighbours
0:21:25 > 0:21:29to make sure everything goes as smoothly as possible.
0:21:29 > 0:21:32They agreed to my plans and I know also he has got some plans
0:21:32 > 0:21:36of his own to build a double-storey extension as well.
0:21:36 > 0:21:42So we've combined the same architect, to hopefully alleviate some of
0:21:42 > 0:21:46these problems and possibly build party wall, et cetera.
0:21:46 > 0:21:51So you're all singing from the same hymn sheet and can all work well together?
0:21:51 > 0:21:55- Hopefully.- I'm really excited to sort of see the look of the build.
0:21:55 > 0:22:00- I know you've got some light sketches. Can we go and have a look at them?- Sure, let's have a look.
0:22:00 > 0:22:02So this is all quite exciting.
0:22:02 > 0:22:04- Yes, it is.- So what are these?
0:22:04 > 0:22:10- Are they just sketches?- They are just a rough sketch basically of Plan A that I was telling you about.
0:22:10 > 0:22:17- The two cottages. - So this is what it is going to look like from the outside.- Hopefully.
0:22:17 > 0:22:20- So three floors.- Three storeys there, yeah. This is the plan.
0:22:20 > 0:22:26There is the off-road parking there, lounge, diner, stairs to the side as opposed to in the middle.
0:22:26 > 0:22:30Good-sized kitchen with doors going out to the garden, which is great.
0:22:30 > 0:22:32Patio doors. Patio area and garden.
0:22:32 > 0:22:36- Then and we've got the bedrooms. - That's the first floor.
0:22:36 > 0:22:38Proposed two bedrooms there.
0:22:38 > 0:22:43- Bathroom, WC, basin. - OK and you go up to the third floor?
0:22:43 > 0:22:49Yeah, hopefully third floor, possibly two bedrooms and some storage area
0:22:49 > 0:22:52or en suite, something like that.
0:22:52 > 0:22:59Basically this is just a rough sketch that I can take to the local planning authority
0:22:59 > 0:23:01and just give them my rough ideas.
0:23:01 > 0:23:06Then we'll source the architect to do the detailed plans
0:23:06 > 0:23:10and personally, I think that, you know, a good build
0:23:10 > 0:23:17starts with good plans, detailed plans and obviously we'll work from those until the job is complete.
0:23:17 > 0:23:20Steve is currently planning to try and put a three-storey house
0:23:20 > 0:23:22on the garage site.
0:23:22 > 0:23:28This might be problematic, because none of the nearby properties go any higher than a second floor.
0:23:28 > 0:23:32Still, it's a risk that Steve is prepared to take.
0:23:32 > 0:23:34Does this really excite you?
0:23:34 > 0:23:36It does, yeah. Yeah, it does.
0:23:36 > 0:23:40It excites me and also it is scary in the same vein.
0:23:40 > 0:23:43Obviously, if we don't gain planning permission
0:23:43 > 0:23:48and if for some reason we can't build, I've paid 60 grand for two garages.
0:23:48 > 0:23:52As long as the planning goes through, I think everyone will be happy.
0:23:52 > 0:23:59Well, that was in July 2007. When we first returned seven months later, Steve wasn't making much progress.
0:23:59 > 0:24:01Since we were last here,
0:24:01 > 0:24:05the council have actually refused our planning permission for
0:24:05 > 0:24:08the semi-detached properties we was proposing.
0:24:08 > 0:24:16But Steve pushed on and after Plan A and Plan B, eventually Plan C WAS approved.
0:24:16 > 0:24:20To see how that final development turned out, join us later in the show.
0:24:24 > 0:24:28Coming up in Staffordshire, sometimes I believe less is more.
0:24:28 > 0:24:31Is it really worth all the effort? I don't think so.
0:24:32 > 0:24:36Three years after we first saw those garages in Gravesend, Kent,
0:24:36 > 0:24:40we return to see what Steve finally built here.
0:24:44 > 0:24:47But first back in Belper, has it all been child's play?
0:24:47 > 0:24:49Next one will be so much easier,
0:24:49 > 0:24:51because we've learned what the pitfalls are.
0:24:56 > 0:24:58We returned to the Derbyshire town of Belper,
0:24:58 > 0:25:01where, slightly set back from the road, was a three-bed
0:25:01 > 0:25:04cottage which left me with a sinking feeling!
0:25:04 > 0:25:07But at £91,000, Paul and Alison,
0:25:07 > 0:25:10along with their five-month-old daughter Bridie,
0:25:10 > 0:25:13thought it was worth investing in.
0:25:13 > 0:25:18Compared with their previous projects, perhaps this wasn't such a daunting task after all.
0:25:18 > 0:25:20We have done up our own chapel.
0:25:20 > 0:25:22We bought a chapel at auction about 4½ years ago
0:25:22 > 0:25:25- and we've really enjoyed doing it up, haven't we?- Yeah.
0:25:25 > 0:25:30Not quite finished yet. And we have been talking about starting to do up properties ourselves
0:25:30 > 0:25:33as a small business and this is our first one.
0:25:33 > 0:25:36- Right, so what kind of experience do you have?- I'm a builder.
0:25:36 > 0:25:39I've been building for probably about 15 years.
0:25:39 > 0:25:44I'm quite used to doing properties up from structural to refurbishment.
0:25:44 > 0:25:47- I think this is quite an easy one this.- Oh, really?- Yeah.
0:25:50 > 0:25:53So five months on, was Paul's confidence well-founded?
0:25:58 > 0:26:01Well, outside, at least, there has been some serious
0:26:01 > 0:26:03tidying up and rebuilding,
0:26:03 > 0:26:07with the lean-to extension removed and a new path laid.
0:26:10 > 0:26:12Well, it is a complete makeover, really.
0:26:12 > 0:26:15We've done outside and inside, a lot of refurbishment.
0:26:22 > 0:26:26Wow! That front reception room does look a whole lot better now.
0:26:26 > 0:26:30We've re-plastered right the way through, rewired it, new central heating system.
0:26:32 > 0:26:36The new heating system should cure the damp and once it is installed,
0:26:36 > 0:26:39prevent the new skirting rotting like the last time.
0:26:39 > 0:26:43And now there is actually a proper kitchen, not just a sink!
0:26:46 > 0:26:48Decorated and carpeted throughout.
0:26:50 > 0:26:54Upstairs the three bedrooms have maintained their character features,
0:26:54 > 0:26:57while windows and floors are now level!
0:26:57 > 0:27:00Perhaps more importantly they have built a corridor,
0:27:00 > 0:27:03so you don't have to pass through one room to get to another.
0:27:05 > 0:27:09The inside of the house is finished off with a lovely new bathroom.
0:27:09 > 0:27:13And we've created the new access at the back as well, which just means, cos parking
0:27:13 > 0:27:18is quite difficult around here, so the other access means there is better parking on Manor Road.
0:27:18 > 0:27:23It's the exterior work that's been most demanding and significant here.
0:27:23 > 0:27:27So as you can see, it's changed a lot since you were here three months ago.
0:27:27 > 0:27:31We've taken the lean-to down and cleared all the gorse that was here.
0:27:31 > 0:27:36The big problem we had was the structural side if it, where there seemed to be a lot of cracks.
0:27:36 > 0:27:40I wasn't too overly worried about it.
0:27:40 > 0:27:43I don't think it was subsidence. There was movement in the corner.
0:27:43 > 0:27:49I think the problem was there was a big old cast post which was supporting the corner wall
0:27:49 > 0:27:53and I think the whole weight had been pushed into one point,
0:27:53 > 0:27:57it's like the stiletto heel effect, a lot of pressure on one point
0:27:57 > 0:28:01and took it out and put a simple foundation with a bit of reinforcement in
0:28:01 > 0:28:04and it should be good for another 100 years.
0:28:04 > 0:28:07Paul might have had his work cut out renovating this house
0:28:07 > 0:28:11while also running his building company,
0:28:11 > 0:28:14but Alison had her hands full, too.
0:28:14 > 0:28:20Yeah, because I've been doing quite a lot of the spec, all the fit-out has been down to me.
0:28:20 > 0:28:26So it has been a lot of hours sat at the computer with her at my feet and I'm now back at work.
0:28:26 > 0:28:28I can't work the hours that I used to do.
0:28:28 > 0:28:3190 hours a week.
0:28:31 > 0:28:34Yeah, that's been contained a little bit, which isn't a problem,
0:28:34 > 0:28:38obviously, but I've had the men on board.
0:28:38 > 0:28:42I can't do everything myself and the men have done a certain amount towards it.
0:28:42 > 0:28:48That was another reason for buying properties, it was a first, but we've now bought another since
0:28:48 > 0:28:53with the idea that it means that Paul is a bit freer with his time
0:28:53 > 0:28:59and so he can choose how quickly or how slowly to do a piece of work that suits our family as well.
0:28:59 > 0:29:06It's not an easy task to do a property renovation when you're both working and have a young family,
0:29:06 > 0:29:11but with Paul's skills and contacts, at least they were in control of the workflow here.
0:29:11 > 0:29:16So did that also mean they controlled their 20 grand budget?
0:29:16 > 0:29:19We reckon we've spent about £33,000,
0:29:19 > 0:29:23which is quite a bit more than we initially estimated.
0:29:23 > 0:29:27However, we had initially just put a nominal figure of £5,000
0:29:27 > 0:29:31for labour, with the notion that Paul wouldn't be paid.
0:29:31 > 0:29:35But what we decided actually that was not possible for a family to live
0:29:35 > 0:29:38doing that, so what we've done is Paul and his company,
0:29:38 > 0:29:44we've just paid the normal rate and so that has pushed the labour costs up.
0:29:44 > 0:29:48So the extra £11,000 has all been labour.
0:29:48 > 0:29:52Costs may have risen, but as Paul also factored in paying himself
0:29:52 > 0:29:56for his own input, that increased budget may not be too serious.
0:29:56 > 0:30:00Perhaps it will help them see what the true renovation costs were,
0:30:00 > 0:30:04which will be useful when budgeting future projects.
0:30:04 > 0:30:09I think the next one will be so much easier, because we've learnt what
0:30:09 > 0:30:14the pitfalls are and we've kind of, we've just learned how to work together as well.
0:30:14 > 0:30:21As you've said, we've worked a formula for how rooms are done and how they are finished.
0:30:21 > 0:30:25The thing is the acid test is selling it.
0:30:25 > 0:30:29We'll know if we want to continue doing it if we sell it for the right price.
0:30:29 > 0:30:34Alison is right, the key thing for them is to sell the property.
0:30:34 > 0:30:37They need the capital from it for their next project.
0:30:37 > 0:30:41They paid 91,000 for the house and had a budget of £33,000.
0:30:41 > 0:30:47So along with other costs, they have nearly £125,000 tied up here.
0:30:47 > 0:30:49What do two local estate agents think?
0:30:51 > 0:30:54Obviously there is a lot more work to be done, but what I've seen so far,
0:30:54 > 0:30:56it looks like a good finish.
0:30:56 > 0:30:58The kitchen looks nice.
0:30:58 > 0:31:01The floor in the main room is rather nice as well.
0:31:01 > 0:31:02So I think a good job all-round.
0:31:02 > 0:31:06The addition to the upstairs of a hallway,
0:31:06 > 0:31:09as opposed to coming through the bedrooms,
0:31:09 > 0:31:12through another one of the bedrooms is really good.
0:31:12 > 0:31:15The lack of parking is a bit of an issue, but the pedestrian access
0:31:15 > 0:31:17at the side will make things a lot easier.
0:31:17 > 0:31:21It is a big positive that the original features have been kept within the property.
0:31:23 > 0:31:29What sort of returns can they hope to see from a house where they have nearly 125 grand invested?
0:31:29 > 0:31:32I think if you were to put this property on the market
0:31:32 > 0:31:35you could afford to ask £139,950,
0:31:35 > 0:31:40but I think realistically you will be looking at £135,000.
0:31:40 > 0:31:44I would put a resale figure on this property of £135,000.
0:31:44 > 0:31:46If we sell for 135, that's great.
0:31:46 > 0:31:49- We would be more than happy, won't we?- Absolutely, yeah.
0:31:49 > 0:31:53Yes, that could see a £10,000 profit, plus Paul's wages
0:31:53 > 0:31:57for three months, making this not a bad project to test the waters.
0:31:57 > 0:31:59Although it has been hard work,
0:31:59 > 0:32:02at least they can start to reap the rewards soon.
0:32:02 > 0:32:08In about six hours, I'm jetting off to Italy, I'm snowboarding for a week's holiday.
0:32:09 > 0:32:13Yeah, a well deserved week's holiday, because he has been working so hard.
0:32:13 > 0:32:20I'm going to be staying at home with Bridie and her big brother Finlay and Murphy the dog.
0:32:20 > 0:32:24So it's nappies and dog food for Alison and for Paul,
0:32:24 > 0:32:26well, it should be all downhill from here.
0:32:39 > 0:32:45In 1910, Stoke-on-Trent was formed by bringing together six small towns.
0:32:45 > 0:32:50Despite being only two miles away, Newcastle-under-Lyme was kept separate.
0:32:50 > 0:32:55So it may be proud of its identity, but does its property market have as much to be proud of?
0:32:55 > 0:32:59This is Brindley Street, a stone's throw from the town centre.
0:32:59 > 0:33:03Now I'm used to looking for the worst house on the street,
0:33:03 > 0:33:08it is often that one that's up for auction, but in this case, I don't think that's the case. It's here.
0:33:08 > 0:33:11It as a two-bedroomed mid-terrace.
0:33:11 > 0:33:15The guide price is £70,000 and it looks in pretty good nick from the outside.
0:33:18 > 0:33:22So what have we got? That's nice. A really good entrance hall there.
0:33:22 > 0:33:27Somewhere to park your bike, hang your coat, very practical and through into the living room.
0:33:27 > 0:33:29Now, this is fantastic. Wow!
0:33:29 > 0:33:32Somebody has done a great thing.
0:33:32 > 0:33:37They've knocked through what was, I imagine, previously two rooms to create one huge great
0:33:37 > 0:33:40open-planned living area, which I think really makes this particular
0:33:40 > 0:33:44terraced house feel a lot bigger than it seems from the outside.
0:33:44 > 0:33:48Coming with the high ceilings it is a great start and also they've taken away
0:33:48 > 0:33:52the under stairs cupboard so it gives this really big open-plan feel.
0:33:52 > 0:33:55A real surprise when you walk through the door. A superb start.
0:33:57 > 0:34:01Although Artex ceilings and walls and dated gas fires don't do this
0:34:01 > 0:34:07room any favours, its size and shape means it could be transformed into a very pleasant space.
0:34:09 > 0:34:11And now, a bit of a surprise for you.
0:34:11 > 0:34:16Ladies and gentlemen, I present to you - the kitchen!
0:34:16 > 0:34:19Actually, maybe a bit of an over the top build-up,
0:34:19 > 0:34:22but it is perfectly serviceable and actually more than that,
0:34:22 > 0:34:25it is a great little kitchen, if you were going to rent this place out,
0:34:25 > 0:34:29get in a professional to steam clean it, maybe change the work surfaces,
0:34:29 > 0:34:34maybe change the sink, apart from that, leave it as it is, it's great. A real bonus.
0:34:34 > 0:34:38The bathroom at the back is less of a bonus.
0:34:38 > 0:34:41The suite looks OK, but again, the decor needs a complete re-think.
0:34:41 > 0:34:45Also it would be preferable to move it upstairs,
0:34:45 > 0:34:47but is that going to be possible?
0:34:47 > 0:34:50So at the front of the property, a really good sized bedroom,
0:34:50 > 0:34:53but much better than that for me, this little area here,
0:34:53 > 0:34:57because it's the same as on the other side, the rear bedroom.
0:34:57 > 0:35:00I'm thinking fit a stud partition wall in here
0:35:00 > 0:35:03and create an upstairs bathroom. How fantastic is that?
0:35:03 > 0:35:05Well, hang on, is it really worth the bother?
0:35:05 > 0:35:08Because what you've got here is a potential rental machine.
0:35:08 > 0:35:10How much is it going to cost you to do that?
0:35:10 > 0:35:12Are you going to generate that much rent
0:35:12 > 0:35:16on top of what you might get anyway and is it really worth the effort?
0:35:16 > 0:35:18You know what, I don't think so.
0:35:18 > 0:35:20So even though I think there is room,
0:35:20 > 0:35:23it's all about value for money in property development.
0:35:23 > 0:35:26This house is never going to be a family home
0:35:26 > 0:35:29as there are not enough bedrooms and practically no garden.
0:35:29 > 0:35:32So it is all about pitching to the right market,
0:35:32 > 0:35:34but what sort of return could there be?
0:35:34 > 0:35:38I asked a local estate agent for his views.
0:35:38 > 0:35:39This property would rent well.
0:35:39 > 0:35:43You would be looking to achieve £440 per calendar month
0:35:43 > 0:35:45to £475 per calendar month.
0:35:45 > 0:35:51£475 per month is not bad for a house that was guided at 70 grand.
0:35:51 > 0:35:53But could it make a good resale investment?
0:35:53 > 0:35:58I would value this property today at £78,000, but with money spent
0:35:58 > 0:36:01in the right areas you would be looking to achieve £88,000.
0:36:08 > 0:36:12So, all in all, a nice enough little property that doesn't really need
0:36:12 > 0:36:15a lot of doing to it to bring it completely up to scratch.
0:36:15 > 0:36:18I don't think there is a lot of money to be made on a quick resale,
0:36:18 > 0:36:21but as a rental return, I think it can deliver very nicely.
0:36:21 > 0:36:25Let's see who agreed with me and bought it under the hammer.
0:36:28 > 0:36:32Lot number 7, Newcastle-under-Lyme,
0:36:32 > 0:36:34two-bedroomed mid-terraced house.
0:36:34 > 0:36:3660 to start me on this one?
0:36:36 > 0:36:41Thank you. 60 right at the back, back left at £60,000.
0:36:41 > 0:36:4265, can I say now?
0:36:42 > 0:36:47At £60,000, far left at £60,000.
0:36:47 > 0:36:5165, can I say? At £60,000, at 65.
0:36:51 > 0:36:56At £65,000. £70,000.
0:36:56 > 0:36:59Standing left at 70. £70,000.
0:36:59 > 0:37:01The bid is left. No mistake.
0:37:01 > 0:37:02I'll take one if it helps.
0:37:02 > 0:37:0571, can I say? 71.
0:37:05 > 0:37:1072. 73, is it?
0:37:10 > 0:37:14No. At 72, then. Are we all done?
0:37:14 > 0:37:1873 anywhere else? That's 72 for the first time.
0:37:18 > 0:37:22At 72 for the second time.
0:37:22 > 0:37:27Third and final time at £72,000 then.
0:37:27 > 0:37:28You bought it, sir, well done.
0:37:28 > 0:37:32So for £72,000, just a fraction above the guide price,
0:37:32 > 0:37:35the new owner of this house in Newcastle-under-Lyme
0:37:35 > 0:37:38is local man, Lee. Lee, lovely to meet you.
0:37:38 > 0:37:40- And you.- Congratulations.- Thank you.
0:37:40 > 0:37:43A good house, actually. A solid little place.
0:37:43 > 0:37:45Just needs a bit of tidying up and it will be good to go.
0:37:45 > 0:37:48Right, so why did you want to buy it?
0:37:48 > 0:37:50- I've got a business across the road. - A business?
0:37:50 > 0:37:53I've got a pool club. I'm a professional pool player.
0:37:53 > 0:37:56- A professional pool player? - I'm the England pool captain.
0:37:56 > 0:37:59Wow! How successful are the England team?
0:37:59 > 0:38:02They're the best team in the world. We won the world title ten times.
0:38:02 > 0:38:04Right, are you good at pool then?
0:38:04 > 0:38:07On my day, I'm good.
0:38:07 > 0:38:08Is there money in it?
0:38:08 > 0:38:11- Is there prizes?- There is, but not as big as snooker and darts.
0:38:11 > 0:38:16It's got really big at the minute, so we're competing against those sports, but it is OK.
0:38:16 > 0:38:18Brilliant. How did you start?
0:38:18 > 0:38:23I lived in Spain with my mum and dad for eight months and I played in the bars over there.
0:38:23 > 0:38:25I came back and just got to play for a team and went
0:38:25 > 0:38:33from there, qualified for county, got into the England team back in 1988 and I have been in it ever since.
0:38:33 > 0:38:36Were you one of these guys who sits on the pool table and all-comers
0:38:36 > 0:38:39come in and you keep on beating them and taking their 10ps and 50ps?
0:38:39 > 0:38:43You used to put your 20p on the table and just stay on all night
0:38:43 > 0:38:45and if you're lucky, you will get a Coke out of them.
0:38:45 > 0:38:49Well, Lee has moved on a bit from winning 20p and a free soft drink.
0:38:49 > 0:38:53Now, by combining playing pool with running his own pool club
0:38:53 > 0:38:57he has managed to turn his hobby into a successful career.
0:38:57 > 0:39:00From pool, then, to houses.
0:39:00 > 0:39:02How did that happen?
0:39:02 > 0:39:05A few years ago I sold my house, I sold my house
0:39:05 > 0:39:09and bought another house and redeveloped it, put five houses on it.
0:39:09 > 0:39:13Wow! So you bought a house, knocked it down and built five houses in its place?
0:39:13 > 0:39:15Put five terraced mews houses on it.
0:39:15 > 0:39:17- And how did that go as a financial venture?- Good.
0:39:17 > 0:39:20Good. I was fortunate it was just at the peak of the property game.
0:39:20 > 0:39:24So I sold them to one investor and it was a quick out.
0:39:26 > 0:39:29With the money from the sale of those properties he bought
0:39:29 > 0:39:30his pool club and now this house.
0:39:30 > 0:39:34It's perfectly positioned for Lee to keep an eye on both
0:39:34 > 0:39:37while the renovation work is done and then when he rents it out.
0:39:41 > 0:39:46Well, it has got Artex everywhere, here, there and everywhere - so that has got to come off.
0:39:46 > 0:39:50So I will get all that knocked down, re-plastered,
0:39:50 > 0:39:55repainted and new carpets, new bathroom, tidy the kitchen up and...
0:39:55 > 0:39:58- Not replace the kitchen then? - Not replace the kitchen.
0:39:58 > 0:40:02- Probably just do the work tops and keep the units.- So how much have you set aside to do the work?
0:40:02 > 0:40:06Probably about 13,000. 13,000 to 14,000.
0:40:06 > 0:40:09- A healthy budget, as you're not replacing the kitchen.- Yeah.
0:40:09 > 0:40:12But I want to do it right so I can try and get a little bit extra rent.
0:40:12 > 0:40:16Lee is used to coming out on top, so he is aiming for
0:40:16 > 0:40:20as good a finish as he can here to reap a maximum return.
0:40:20 > 0:40:22If playing pool's taught him anything,
0:40:22 > 0:40:24it is about attention to detail,
0:40:24 > 0:40:27weighing up the options and making the right decision.
0:40:27 > 0:40:32So anything else particularly going on in your life at the moment?
0:40:32 > 0:40:36Well, not really, I got engaged at the beginning of the year.
0:40:36 > 0:40:39Well, that's a "really", not a "not really," isn't it?
0:40:39 > 0:40:41Well, it is, I mean the other thing,
0:40:41 > 0:40:45- my girlfriend has just got pregnant as well.- Congratulations.
0:40:45 > 0:40:50At this stage she is three months pregnant, so hopefully...
0:40:50 > 0:40:53Oh, very exciting. Where did you get engaged?
0:40:53 > 0:40:54At the pool club.
0:40:54 > 0:40:56It was New Year's Eve.
0:40:56 > 0:41:03So we decided to have a party and at the end, I built my courage up and asked her.
0:41:03 > 0:41:05- With everyone else around? - Everybody around.
0:41:05 > 0:41:11I got my microphone, I pulled her from behind the bar, she was serving somebody, she didn't expect it.
0:41:11 > 0:41:15She always said, "No, no, marriage isn't for me," but I surprised her.
0:41:15 > 0:41:18What did everyone do when she said yes?
0:41:18 > 0:41:21Most of them were crying, because they didn't expect it
0:41:21 > 0:41:24and they were all pleased and she was very pleased.
0:41:24 > 0:41:26- Aww, what a great way to start the New Year.- Yeah.
0:41:38 > 0:41:41Well, Lee has potted himself a decent investment with this one
0:41:41 > 0:41:45and I bet he can't wait to get the ball rolling on the renovations,
0:41:45 > 0:41:47but will he chalk up more success
0:41:47 > 0:41:51and will this be the cue for an enhanced property portfolio?
0:41:51 > 0:41:53You can find out later in the show.
0:41:56 > 0:42:00Well, our intrepid investors have had time to get stuck in.
0:42:00 > 0:42:05- But has it been a hard slog, or plain sailing?- Time to find out.
0:42:05 > 0:42:09In the summer of 2007, the economic climate seemed rosy
0:42:09 > 0:42:12and the property market was booming.
0:42:12 > 0:42:14So to local Gravesend builder, Steve,
0:42:14 > 0:42:19it seemed the perfect time to go solo and do a development for himself.
0:42:19 > 0:42:25So in a spirit of adventure, he bought a pair of garages in the town for £61,000.
0:42:25 > 0:42:29They were not to store equipment or tools for his new venture,
0:42:29 > 0:42:32but for something a little more ambitious.
0:42:32 > 0:42:37The plan is two semi-detached cottages, that's Plan A,
0:42:37 > 0:42:43or if failing that, a detached property, possibly four bedrooms.
0:42:43 > 0:42:47It definitely lends itself to some sort of dwelling.
0:42:47 > 0:42:50- I mean, these totally look out of place in the road.- Exactly.
0:42:50 > 0:42:56I think it is the last plot to be developed in the area and we've picked it up, yeah, really fortunate.
0:42:56 > 0:43:02They say fortune favours the brave, and it is a brave man who buys a plot without planning permission
0:43:02 > 0:43:04and then has to take on the planning department.
0:43:04 > 0:43:10Certainly when we first returned six months later, progress had been slow.
0:43:10 > 0:43:14Since you was last here, the council have refused our planning permission
0:43:14 > 0:43:17for the semi-detached properties we was proposing.
0:43:17 > 0:43:20I think we will more than likely go for
0:43:20 > 0:43:24a single dwelling, possibly three- or four-bedroomed property.
0:43:24 > 0:43:27There was no guarantee that Steve would get that either.
0:43:27 > 0:43:32Now we have returned again nearly three years after first seeing the garages.
0:43:32 > 0:43:34Has Steve finally made any headway?
0:43:36 > 0:43:39Well, after 18 months waiting for the result
0:43:39 > 0:43:42of three planning applications,
0:43:42 > 0:43:46it looks like the one single house option finally swung it for him.
0:43:46 > 0:43:50However, the design and layout is a little unusual,
0:43:50 > 0:43:53due to the planning regulations Steve had to abide by.
0:43:59 > 0:44:04This is the kitchen/diner.
0:44:04 > 0:44:06The internal garage is to this side.
0:44:07 > 0:44:10As you can see the fitted kitchen now
0:44:10 > 0:44:14and also we've got a toilet on the ground floor,
0:44:14 > 0:44:16but it was a stipulation of the council's
0:44:16 > 0:44:20that we had no living accommodation on the ground floor.
0:44:20 > 0:44:25It is obviously on the first floor for flood assessment risk.
0:44:25 > 0:44:29So, with the house deemed to be on a flood plain,
0:44:29 > 0:44:31the living accommodation is slightly upside down
0:44:31 > 0:44:35with the kitchen on the ground floor and the sitting room on the first floor.
0:44:37 > 0:44:40OK, as you can see, this is the lounge.
0:44:40 > 0:44:44Slightly different layout to what we had on the drawings.
0:44:44 > 0:44:47The stairs are slightly different.
0:44:47 > 0:44:48There was a half landing here,
0:44:48 > 0:44:50we changed them for a set of winders
0:44:50 > 0:44:53just to gain this little bit of extra space
0:44:53 > 0:44:55and I think it has turned out quite a nice size.
0:44:57 > 0:45:03Along with this spacious sitting room, this floor also boasts a bathroom and a bedroom.
0:45:06 > 0:45:10On the top floor, there are two more bedrooms
0:45:10 > 0:45:12to complete Steve's three-bed detached house
0:45:12 > 0:45:15which took ten months to build.
0:45:17 > 0:45:22I've been here all the time, you know, managing it and working as well.
0:45:22 > 0:45:24I tackled the plumbing,
0:45:24 > 0:45:29electrics, plastering, you know, the whole thing really.
0:45:29 > 0:45:31And it's not quite finished yet.
0:45:31 > 0:45:37Some major landscaping is needed in the garden, along with some general tidying,
0:45:37 > 0:45:42but with 18 months in planning and ten months to build, costs must have mounted.
0:45:42 > 0:45:47Obviously saved money labour-wise by doing a lot of the work ourselves
0:45:47 > 0:45:51and I think we come sort of bang smack on about £75,000.
0:45:51 > 0:45:54I think the whole build has cost us up to this stage.
0:45:54 > 0:45:59Steve paid £61,000 for the garage plot in 2007.
0:45:59 > 0:46:05So with his total £75,000 spend, he has nearly £140,000 locked up in these former lock-ups.
0:46:05 > 0:46:07But with the downturn in the property market,
0:46:07 > 0:46:11he doesn't want to release the capital tied up here just yet.
0:46:11 > 0:46:16When it's all completed I think we'll move in,
0:46:16 > 0:46:18as a family, for a short while
0:46:18 > 0:46:22hopefully until we move on to the next build.
0:46:22 > 0:46:25Steve might be planning another build, but he can't move on to that
0:46:25 > 0:46:29until he has finished this one and ideally sold it.
0:46:29 > 0:46:32Also it needs to fetch a price that Steve is happy with.
0:46:32 > 0:46:36So how does his £140,000 investment stack up in the current market?
0:46:36 > 0:46:44We asked along two local estate agents to see what they think of Steve's topsy-turvy house.
0:46:44 > 0:46:45I like the place. It is a good size.
0:46:45 > 0:46:48It's just a shame with the flood regulations
0:46:48 > 0:46:50that we've lost the ground floor effectively
0:46:50 > 0:46:53and we've got dormers up in the top two bedrooms.
0:46:53 > 0:46:56I like the finish of the house. He has done a really good job.
0:46:56 > 0:46:59However, the unfortunate thing is the layout of the house.
0:46:59 > 0:47:03I think the garage, he had to have it for planning purposes.
0:47:03 > 0:47:06It is a useful thing to have, but I wouldn't be surprised
0:47:06 > 0:47:09if we didn't come back in a few years' time
0:47:09 > 0:47:11and see that converted to a living room.
0:47:11 > 0:47:17The only thing I would say that he should have considered is putting an en-suite on the top level.
0:47:17 > 0:47:23Clearly the layout isn't ideal for everyone, but it is a smart town house with off-street parking.
0:47:23 > 0:47:26It has what will be a decent-sized garden and three bedrooms,
0:47:26 > 0:47:29so it could be well suited to the rental market.
0:47:32 > 0:47:35I would expect this to let for around about £900 per calendar month.
0:47:35 > 0:47:38There is a big rental market in this area.
0:47:38 > 0:47:42I would say the property would fetch in the region of £900 to £1,000 per calendar month.
0:47:42 > 0:47:46I'm pleased with that, yeah, £950 sounds about right.
0:47:46 > 0:47:50Though Steve doesn't initially plan to rent it out,
0:47:50 > 0:47:54£950 a month is a potential income of over £11,000 a year.
0:47:54 > 0:47:56So not a bad fall-back position.
0:47:56 > 0:48:03But what return could he expect from his £140,000 investment if he sold the house?
0:48:03 > 0:48:09I would value this property at £195,000 to £199,950.
0:48:09 > 0:48:14I would value this property in the region of £200,000 to £215,000.
0:48:14 > 0:48:19I think it is on the low side, to be honest, the total valuation.
0:48:19 > 0:48:25And you can understand why even values of £215,000 seem low to Steve,
0:48:25 > 0:48:28because when we first returned in 2008,
0:48:28 > 0:48:32a three-bedroom house was predicted to fetch up to £250,000.
0:48:32 > 0:48:38So the potential end value of the house has dropped nearly £15,000 in under two years.
0:48:38 > 0:48:43But there is still a profit of maybe £60,000 to £80,000 if he sold now,
0:48:43 > 0:48:47and it is clearly enough to encourage him to try again.
0:48:47 > 0:48:52It's definitely been worthwhile, yeah, not only for the experience,
0:48:52 > 0:48:54but obviously it is a long-term plan
0:48:54 > 0:48:58so, you know, yeah, it's been a good goal.
0:48:59 > 0:49:02Nearly three years of red tape and hard work
0:49:02 > 0:49:05have finally seen both Steve's property developing career
0:49:05 > 0:49:07and the house rising and shining
0:49:07 > 0:49:12from the ruins of two old garages and a scrappy piece of yard.
0:49:24 > 0:49:29Staffordshire may be noted for its pottery, but in Newcastle-under-Lyme it was partly due to
0:49:29 > 0:49:35pots of a very different sort that local lad Lee had earned enough to dabble in the property market.
0:49:35 > 0:49:38He bought a two-bedroomed terrace house for 72 grand.
0:49:40 > 0:49:42I've got a business just across the road.
0:49:42 > 0:49:46- A business?- Yeah, a pool club. I am a professional pool player.
0:49:46 > 0:49:50- You're a professional pool player? - Yeah, I am the England pool captain. - Wow!
0:49:50 > 0:49:52How successful are the England team?
0:49:52 > 0:49:55The best team in the world. We've won the world title ten times.
0:50:06 > 0:50:09So Lee might be a hot shot when it comes to pool, but was his break
0:50:09 > 0:50:12into the property game going to be as successful?
0:50:12 > 0:50:15Well, three months later, we're back.
0:50:17 > 0:50:20From outside, it is looking much smarter.
0:50:22 > 0:50:24And inside?
0:50:27 > 0:50:31Well, it is modern and bright and spot on for the rental market.
0:50:31 > 0:50:36In the living room, we decided to replace the old fireplace which was all brick.
0:50:36 > 0:50:38Put a bit of boxing in to hide the meters away.
0:50:38 > 0:50:42Put a plasma fire on the wall, so it looked modern and contemporary.
0:50:42 > 0:50:46Re-plastered, got rid of the old artex, put new coving up.
0:50:46 > 0:50:49Re-decoration, new plumbing.
0:50:49 > 0:50:51We put a new radiator system in.
0:50:51 > 0:50:53Just bright and airy really.
0:50:53 > 0:50:59This house was not in a desperate state, but Lee has done really well reinvigorating it.
0:50:59 > 0:51:04He used the old kitchen units, but replaced the tiling, work tops and flooring.
0:51:07 > 0:51:13And although the bathroom is still downstairs, a new suite and updated tiling have done wonders.
0:51:15 > 0:51:18Upstairs, the two re-decorated bedrooms appear more spacious.
0:51:18 > 0:51:23In fact, Lee has managed to pull off a clever trick here.
0:51:23 > 0:51:26I decided to take a bit off each side of the two rooms
0:51:26 > 0:51:29and squeeze a bathroom in.
0:51:29 > 0:51:33I didn't think it was possible. There is a wall there which wasn't load-bearing,
0:51:33 > 0:51:35so I took the wall down and squeezed a bathroom in there.
0:51:35 > 0:51:39That upstairs shower room is fantastic.
0:51:39 > 0:51:42So overall, I think he has played a blinder.
0:51:42 > 0:51:44Although he can't take all the credit.
0:51:44 > 0:51:50Louise, his fiancee, who is now pregnant with their first child, played a vital part as well.
0:51:50 > 0:51:54Lee is very busy and spends a lot of time away from home as well,
0:51:54 > 0:51:58so the way it is done, he gets people in who he knows he can trust
0:51:58 > 0:52:03to do the jobs and then sometimes it is a bit of involvement from me
0:52:03 > 0:52:06to chase them up and make sure everything is done and on time.
0:52:06 > 0:52:10And through it all, Lee still found time to play pool and win.
0:52:10 > 0:52:15On one of his trips away, the England team he captains won the European pool championship.
0:52:15 > 0:52:19So he's had success on the tables as well as with the carpets here!
0:52:19 > 0:52:23The difference between playing pool and property developing,
0:52:23 > 0:52:27you can control more of what is going on the pool table than the property game.
0:52:27 > 0:52:32You have to work out what the market is doing and there are a lot of unforeseen things. So I enjoy both.
0:52:32 > 0:52:35He doesn't do anything less than 100%.
0:52:35 > 0:52:39I trusted him when he decided that he was going to knock our house down
0:52:39 > 0:52:43to build five other houses and then we may look at building our own house in the future,
0:52:43 > 0:52:46buying a plot of land and building a house for us.
0:52:46 > 0:52:50There appears to be no stopping Lee once he is on a roll.
0:52:50 > 0:52:53But it isn't just property and pool that will keep him busy soon.
0:52:53 > 0:52:58- In the future, this year is going to be a busy year with the baby coming along.- That will be a big shock.
0:52:58 > 0:53:00A good experience for both of us.
0:53:00 > 0:53:03Hopefully find a plot of land and build our own house.
0:53:03 > 0:53:08And then probably I would see us moving again in the next four or five years as well.
0:53:08 > 0:53:11With all those things on Lee's plate, the key aims here were not
0:53:11 > 0:53:16only to refurbish the house quickly, but to get it bringing in revenue.
0:53:18 > 0:53:22The house is now going to be rented out to my manageress at the club.
0:53:22 > 0:53:28She only lives about six miles away, so now she can walk to work which is a good bonus for her.
0:53:28 > 0:53:32It's ideal for me, because I can trust the person renting it.
0:53:32 > 0:53:35Not only is it perfect because he knows her,
0:53:35 > 0:53:40but also because she can get to work at his pool business more easily.
0:53:40 > 0:53:43So how does she feel about the arrangement?
0:53:43 > 0:53:45Lee came and showed it me.
0:53:45 > 0:53:48I think it was probably about two months after he had it
0:53:48 > 0:53:52and I took a look around and that was it, I was like, no, I want it, because it's ideal.
0:53:52 > 0:53:55It's perfect for me, so in I come.
0:53:55 > 0:53:59He knows me and we've been able to talk through what I like and don't like,
0:53:59 > 0:54:02and it ends up how I wanted it, which has helped,
0:54:02 > 0:54:06because we spoke through every stage of it as it has been done.
0:54:06 > 0:54:07So yeah, it has helped a bit.
0:54:07 > 0:54:11So a happy tenant and a relatively stress-free renovation,
0:54:11 > 0:54:16but how deep into his budget did he have to dig for all of this?
0:54:16 > 0:54:19The original budget I looked to spend was £13,000 to £14,000
0:54:19 > 0:54:21and that's before I decided to put a bathroom in.
0:54:21 > 0:54:26So that cost me £3,000 or £4,000 more and I ended up spending about £18,000
0:54:26 > 0:54:29which is about where I thought it would be.
0:54:34 > 0:54:36So an £18,000 budget
0:54:36 > 0:54:39on top of his £72,000 purchase price,
0:54:39 > 0:54:44plus costs and fees will make Lee's total investment around £95,000.
0:54:44 > 0:54:48So is Lee still on cue to make a profit here?
0:54:51 > 0:54:54They've done a very good refit, spent a lot of time and effort
0:54:54 > 0:54:56and refurbished the house throughout.
0:54:56 > 0:54:58They have done a very, very good job indeed.
0:54:58 > 0:55:03It is everything that it should be. It's re-plastered.
0:55:03 > 0:55:04Kitchen is good.
0:55:04 > 0:55:07The bathrooms are superb and a very good job.
0:55:07 > 0:55:09The second bathroom upstairs is a good selling point.
0:55:09 > 0:55:12A lot of purchasers like two separate toilets,
0:55:12 > 0:55:14and a secondary bathroom in the morning is useful.
0:55:14 > 0:55:19The standard of finish here is very good, with the exception maybe of the kitchen.
0:55:19 > 0:55:22They have re-utilised older units.
0:55:22 > 0:55:27But they are good quality, so they have just about got away with that one.
0:55:27 > 0:55:31For the time being at least, Lee intends to rent this out,
0:55:31 > 0:55:36but how much could he pocket if he sold his £95,000 investment?
0:55:36 > 0:55:40I would put this property on for £94,950.
0:55:40 > 0:55:45Looking at the property today, I would say the value is £85,000.
0:55:45 > 0:55:4885 grand is low. I would lose money on it.
0:55:48 > 0:55:5195 seems about right. Somewhere in the middle I break even.
0:55:53 > 0:55:57OK, so now is not the time to get the maximum return on resale.
0:55:57 > 0:55:59But it is rental that's more important to him anyway.
0:55:59 > 0:56:03Looking at the property from a rental point of view, I would say
0:56:03 > 0:56:07that an achievable rental figure is £450 per calendar month.
0:56:07 > 0:56:10This property should rent for £495 per calendar month.
0:56:10 > 0:56:15Right, I've got Janine in at £425, so she'll will be happy with that,
0:56:15 > 0:56:18and if I get anybody else in, I get a better rent which is good.
0:56:18 > 0:56:23It doesn't seem like Lee will rack up a fortune here, but I don't think he is worried.
0:56:23 > 0:56:26He has got other things on his mind.
0:56:26 > 0:56:29- Obviously the newborn baby. - Got to be the baby, yeah.
0:56:29 > 0:56:33- So something planned and good year hopefully.- Definitely.
0:56:35 > 0:56:39And although this property won't give Lee a big pot of gold,
0:56:39 > 0:56:44it goes to show how hard it can be sometimes to come out on top in the property game.
0:56:51 > 0:56:54We hope you have enjoyed our three very different stories.
0:56:54 > 0:56:58- We'll see you again next time for more Homes Under the Hammer. - Goodbye.- Bye.
0:57:05 > 0:57:08Subtitles by Red Bee Media Ltd
0:57:08 > 0:57:11E-mail subtitling@bbc.co.uk