0:00:02 > 0:00:04When the going gets tough, the tough get going.
0:00:04 > 0:00:07Especially in today's property market.
0:00:07 > 0:00:14With prices lower than they have been for years, maybe it's time to buy your home under the hammer.
0:00:39 > 0:00:43Buying property at auction is a low-hassle way of buying.
0:00:43 > 0:00:50- But if you haven't done research, your troubles may have just begun. - It could be riddled with problems.
0:00:50 > 0:00:56- Or your dream purchase.- What are the runners and riders on today's show?
0:00:58 > 0:01:02'I go to Chesterfield to see this three-bedroom terraced house.'
0:01:02 > 0:01:06All in all, needs work but not bad.
0:01:06 > 0:01:12'This Edwardian house in Croydon could do with some interior design.'
0:01:12 > 0:01:16There's a lot of wallpaper stripping to do in this house!
0:01:17 > 0:01:22'And what's in store at this commercial unit in Ayrshire?'
0:01:22 > 0:01:27There is nothing supporting those bricks so they could fall down.
0:01:28 > 0:01:31'They have all been sold at auction,
0:01:31 > 0:01:36'and we'll find out who bought them when they went under the hammer.'
0:01:39 > 0:01:42'I'm in Chesterfield in Derbyshire,
0:01:42 > 0:01:47'and I'm here to visit a property just a mile from the town centre.'
0:01:47 > 0:01:51I'm in the residential part of Chesterfield,
0:01:51 > 0:01:56near Queen's Park, with its boating lake and gardens.
0:01:56 > 0:02:01It's a former housing association property, guide price of £48,000.
0:02:01 > 0:02:03It's got double glazing,
0:02:03 > 0:02:08an opportunity to create off-street parking, so, worth a look.
0:02:08 > 0:02:13'To create off-street parking, you need planning permission
0:02:13 > 0:02:15'to get that kerb dropped.
0:02:15 > 0:02:21'If you don't use permeable materials, you'll need planning permission for that.'
0:02:21 > 0:02:27So, £48,000. Not a lot of money for a house. What do you get?
0:02:27 > 0:02:29Doesn't look bad.
0:02:29 > 0:02:33Nice entrance hall. Keep the noise and the cold out.
0:02:33 > 0:02:36Clearly very tired, very dated.
0:02:36 > 0:02:38You'll have to put flooring down.
0:02:38 > 0:02:43The more a house is stripped back, the better, as far as I'm concerned.
0:02:43 > 0:02:49Check there's a damp proof course. Solid floors can give you a problem.
0:02:49 > 0:02:51As living rooms go, not a bad start.
0:02:51 > 0:02:55Then through to the kitchen. It starts to go a bit wrong.
0:02:55 > 0:03:00You've got this little storage area, a pantry or utility room.
0:03:00 > 0:03:03The kitchen itself isn't massive,
0:03:03 > 0:03:08but if you take out that wall you've got a really nice size space.
0:03:08 > 0:03:15You'll have to replace these units. They're not in a brilliant state.
0:03:15 > 0:03:20Create an extra few feet and give a nice central point to the house.
0:03:20 > 0:03:22All in all, needs work but not bad.
0:03:23 > 0:03:29'A rear lobby leads to the back door, storage space and the stairs.
0:03:29 > 0:03:34'Overall, this place could do with a rethink of the layout.'
0:03:35 > 0:03:40Upstairs, what have we got? Bedroom there. Another bedroom.
0:03:40 > 0:03:43Bathroom - good to see upstairs.
0:03:43 > 0:03:47For me, the jewel in this house is the third bedroom.
0:03:47 > 0:03:52It's absolutely enormous. You've got an open fire.
0:03:52 > 0:03:56Big question is, do you keep it as a room like this,
0:03:56 > 0:04:00or put a dividing wall in to create a fourth bedroom?
0:04:00 > 0:04:04That depends on what you use the house for.
0:04:04 > 0:04:07If I was going to live here, I'd have it as my bedroom.
0:04:07 > 0:04:13If I was renting it out, a fourth bedroom would bring in extra income. The choice is yours.
0:04:13 > 0:04:19I asked the auctioneer who sold the property to give me his thoughts.
0:04:19 > 0:04:21It's tired. It's shabby.
0:04:21 > 0:04:27It's obviously been tenanted for some while. A lot is cosmetic.
0:04:27 > 0:04:33'We're looking at kitchen and bathroom refits, upgrading the heating system.
0:04:33 > 0:04:36'It's not going to cost a lot of money.
0:04:36 > 0:04:41'Good news, but would it be easier to sell or rent it out?
0:04:41 > 0:04:46'If this was my property, I would certainly go for the rental market.
0:04:46 > 0:04:50'I don't think there's a lot to be made by a sale.
0:04:50 > 0:04:55'It's a longer-term investment and there's a strong rental market.
0:04:55 > 0:04:58'What would be the financial implications of each?'
0:04:58 > 0:05:05Once renovated, this would have a rental value of £525 to £550 a calendar month.
0:05:05 > 0:05:08'The guide price at auction was £48,000,
0:05:08 > 0:05:13'so how much do similar houses in the area go for?'
0:05:13 > 0:05:15Renovated to a good standard,
0:05:15 > 0:05:19I would say, on today's market, this has a resale value of £90,000.
0:05:19 > 0:05:22So, a pretty solid little property.
0:05:22 > 0:05:25You'd want to put in a new kitchen,
0:05:25 > 0:05:31a new bathroom, maybe sort out off-street parking and rejig the layout,
0:05:31 > 0:05:35then you've got a good family home or a solid rental property.
0:05:35 > 0:05:38Who went for it when it went under the hammer?
0:05:42 > 0:05:46Lot 21 is a double-fronted three-bedroom townhouse.
0:05:46 > 0:05:51At £45,000 opening bid. 46 somewhere else? 45,000 I have.
0:05:51 > 0:05:5446 is bid. 46. 47.
0:05:54 > 0:05:5648.
0:05:56 > 0:05:5849 is bid. 50,000.
0:05:58 > 0:06:0251. 52. 53.
0:06:02 > 0:06:0754. 55. 55,000.
0:06:07 > 0:06:1356. £56,000. I'll take a half if it'll help you.
0:06:13 > 0:06:16At £56,000 first time. Second time.
0:06:16 > 0:06:21Third and last... 56,500. 57?
0:06:21 > 0:06:2557 is bid. 57,500.
0:06:25 > 0:06:2758, sir?
0:06:27 > 0:06:30At £57,500, then, once.
0:06:30 > 0:06:32Twice. Third time.
0:06:32 > 0:06:35It's yours, sir, at £57,500. Thank you.
0:06:35 > 0:06:41'That final bid made by friends Phil and Dave clinched the deal for £57,500.
0:06:41 > 0:06:46'This three-bed terrace marks the beginning of a new business.
0:06:46 > 0:06:49'I met them to find out more.'
0:06:49 > 0:06:53David, Phil, congratulations. Why did you want to buy the house?
0:06:53 > 0:06:57We're hoping to use this to get into property developing.
0:06:57 > 0:07:01We're both thinking we've got a few skills that can help us,
0:07:01 > 0:07:06get a bit of money out of it, maybe, and take us on to our next one.
0:07:06 > 0:07:14We'd both like to make it into a career. Maybe that's further down the line than just today.
0:07:14 > 0:07:19- What do you do?- I work at a college, head of the construction department.
0:07:19 > 0:07:23- Oh!- I've got a background as an architect, so...dual skills.
0:07:23 > 0:07:25Very useful. What about you, David?
0:07:25 > 0:07:29I'm a quantity surveyor working in the construction industry.
0:07:29 > 0:07:36Hopefully, I'm going to bring a few skills with budget control and utilise those.
0:07:36 > 0:07:41Sounds like a fantastic pairing! Did you know each other before?
0:07:41 > 0:07:45Yeah, basically, we play poker on a Friday evening.
0:07:45 > 0:07:49- Sorry?- Poker.- Cards poker? - Yeah.- Right.
0:07:49 > 0:07:52It's about a year and a half, two years ago.
0:07:52 > 0:07:59We happened to get talking. I've wanted to do this for quite a few years.
0:07:59 > 0:08:04I asked Dave if he was interested. And it started there, really.
0:08:04 > 0:08:08MUSIC: "Poker Face" by Lady Gaga
0:08:12 > 0:08:18'Rivals around the table, let's hope they're a winning pair in property development.
0:08:18 > 0:08:22'Did poker prepare them for the tension of an auction?'
0:08:22 > 0:08:27Nerve-racking! More nerve-racking than we thought it was going to be.
0:08:27 > 0:08:32- How did you decide who was going to bid?- You said, "You're bidding!"
0:08:32 > 0:08:36It was a natural selection process. "It's yours."
0:08:36 > 0:08:42- I liken auctions to a game of poker. You've got to play that game.- Yes.
0:08:42 > 0:08:49- Did you bring in your poker skills? - We did have a game plan but the game plan went to pieces.
0:08:49 > 0:08:52'Their game plan was a complex web of strategies,
0:08:52 > 0:08:56'including one of them jumping in at the end with a higher bid.
0:08:56 > 0:09:03'But the excitement got the better of them and their crafty tactics flew out of the window.
0:09:03 > 0:09:07'They even think they were bidding against each other!
0:09:07 > 0:09:10'Why did they go for this house?'
0:09:10 > 0:09:17This was the one that we thought, with the skills that we've got, practically and technically,
0:09:17 > 0:09:23with the amount of work, we're both probably capable of doing that work.
0:09:23 > 0:09:27- You mean physically doing it? - Physically doing it.
0:09:27 > 0:09:31- Tell me what you're going to do. - First, get it gutted back.
0:09:31 > 0:09:36A lot of plastering. We've got a little bit of damp.
0:09:36 > 0:09:41A few slipped tiles on the roof, but it's predominantly cosmetic.
0:09:41 > 0:09:44We are going to investigate the kitchen.
0:09:44 > 0:09:49There's an opportunity to make the kitchen a little bigger.
0:09:49 > 0:09:52Upstairs, we're looking to create a further bedroom,
0:09:52 > 0:09:58to make it a four-bed property, so we're going to explore the options.
0:09:58 > 0:10:01What will make the three/four bed decision?
0:10:01 > 0:10:06I'll produce the drawings and we'll have a look at the measurements.
0:10:06 > 0:10:10It's simply if the room sizes work, we'll do it.
0:10:10 > 0:10:13If they don't, then maybe an en suite instead.
0:10:13 > 0:10:18'As well as being a poker player, Dave's a quantity surveyor.
0:10:18 > 0:10:23'Will he play his cards close to his chest with their budget?'
0:10:23 > 0:10:28- We're looking at about 15,000... - Oh, for goodness sake! About 15,000?
0:10:28 > 0:10:32I expected you to say, "£13,741!"
0:10:32 > 0:10:35Certainly not.
0:10:35 > 0:10:38"It ought to be about 10,000. About 15,000."
0:10:38 > 0:10:45The little bit of contingency we've got has made it into a nice round number!
0:10:45 > 0:10:49- What does that buy? - New kitchen, new bathroom.
0:10:49 > 0:10:57Obviously, in terms of the plaster work, we're probably going to replaster the entire property.
0:10:57 > 0:11:02We're looking to put a new drive in so it gives a bit more kerb appeal
0:11:02 > 0:11:05and off-street parking,
0:11:05 > 0:11:07which is always a bonus.
0:11:07 > 0:11:11- Are you going to have to apply for planning permission?- We are.
0:11:11 > 0:11:16'They've laid their cards on the table as far as budget is concerned.
0:11:16 > 0:11:18'What about the time scale?'
0:11:18 > 0:11:22We've sort of put something together for eight to ten weeks.
0:11:22 > 0:11:26Maybe. Depending on how much work we can put in.
0:11:26 > 0:11:31A bit of back-up there, if we need to slip a couple of weeks.
0:11:31 > 0:11:35- You're doing this in your spare time?- Weekends and evenings.
0:11:35 > 0:11:39- What do the family think about this? - LAUGHS
0:11:39 > 0:11:42They've been very supportive.
0:11:42 > 0:11:46I had to do a bit more convincing. I had a little boy a few weeks ago.
0:11:46 > 0:11:49- A few weeks ago?- Yes. 18 days today.
0:11:49 > 0:11:54I had to do a bit more persuading that this was the right time.
0:11:54 > 0:11:57She's going to be the changing nappies.
0:11:57 > 0:12:03I've got her to learn how to change a nappy with one hand and use the roller with the other.
0:12:03 > 0:12:07- You're in trouble, you know that? - Yes. I am.
0:12:07 > 0:12:12- Well done. We look forward to seeing how you get on.- Thank you very much.
0:12:13 > 0:12:20How will our poker playing chums get on with their first commercial venture together?
0:12:20 > 0:12:22Will it be "straight" forward?
0:12:22 > 0:12:26Will they have a "full house" of people helping them?
0:12:26 > 0:12:30Will it fold and they lose their shirt? Find out later in the show.
0:12:34 > 0:12:38I'm in the borough of Croydon where the Surrey Iron Railway,
0:12:38 > 0:12:42the world's first public railway, opened in 1803.
0:12:42 > 0:12:46It ran from Wandsworth to Croydon, but the horse-drawn service
0:12:46 > 0:12:51ran out of horsepower in 1846 with the advent of the steam train.
0:12:51 > 0:12:58So let's hope I'm on the right track and I don't run out of steam in search of today's property.
0:13:07 > 0:13:10'Nowadays, the transport links are excellent,
0:13:10 > 0:13:16'as you can easily get to the centre of London by train, Tube or bus.
0:13:16 > 0:13:19'So property has solid investment potential.'
0:13:19 > 0:13:23How far does your pound stretch here in suburbia?
0:13:23 > 0:13:30It's a three-bedroom Edwardian mid-terrace property with two reception rooms.
0:13:30 > 0:13:37And, from where I'm standing, looks good value for the £150,000 to £160,000 guide price.
0:13:37 > 0:13:41I grew up in an Edwardian house just like this.
0:13:41 > 0:13:45It always has such a special feeling for me.
0:13:45 > 0:13:48It's a wonderful big hallway but look at that!
0:13:48 > 0:13:52There's a lot of wallpaper stripping to do in this house.
0:13:52 > 0:13:57From the hallway into the sitting room and, again, look at this!
0:13:57 > 0:14:03This has all got to be ripped off. In fact, it's in a right old state!
0:14:03 > 0:14:07You've got floorboards missing. Somebody's pulled out the fireplace.
0:14:07 > 0:14:13I don't know what the story is, but it does need a big tidy-up.
0:14:13 > 0:14:18One you're in this room, I am drawn to this beautiful window area.
0:14:18 > 0:14:21Look! It is really spectacular.
0:14:21 > 0:14:23You've got this arch across it.
0:14:23 > 0:14:25Wonderful little box bay.
0:14:25 > 0:14:28So far, so good.
0:14:28 > 0:14:33'And then there's the kitchen, which could do with an overhaul.
0:14:33 > 0:14:35'It's a reasonable size
0:14:35 > 0:14:38'and would make a great kitchen/breakfast room.'
0:14:38 > 0:14:43Upstairs, you've got three good size bedrooms and a bathroom,
0:14:43 > 0:14:46which is common in properties of this period,
0:14:46 > 0:14:51unlike Victorian terraces which usually have a bathroom downstairs.
0:14:51 > 0:14:55One thing you should know is that only last year,
0:14:55 > 0:15:00estate agents sold two three-bedroom houses like this one on this road
0:15:00 > 0:15:02for £250,000.
0:15:02 > 0:15:05That guide is looking even better now.
0:15:05 > 0:15:09'As auction properties go, this one's pretty good.
0:15:09 > 0:15:12'There's a bit to be done, but not so much
0:15:12 > 0:15:14'that a DIYer couldn't cope with.'
0:15:14 > 0:15:20A bonus of suburban living is the amount of outside space to call your own.
0:15:20 > 0:15:24To the front, you've got the paved area,
0:15:24 > 0:15:27so privacy and noise issues are sorted.
0:15:27 > 0:15:30Then, out back, you've got this!
0:15:30 > 0:15:36Once it's cleaned up, a nice patio area, a bit of garden over the back,
0:15:36 > 0:15:38and this lovely palm tree!
0:15:38 > 0:15:42It is quite private. You're not overlooked, which is great.
0:15:42 > 0:15:46On a day like today, who could ask for more?
0:15:47 > 0:15:52'I invited a local estate agent to tell me what he thought.'
0:15:52 > 0:15:57These properties are 1900s, mostly, around this area.
0:15:57 > 0:16:00Typical three-bedroom houses.
0:16:00 > 0:16:05Three to four bedrooms, rather. These are prime residential roads.
0:16:07 > 0:16:12'What would make this house more appealing to buyers?'
0:16:12 > 0:16:15I'd definitely go for a new kitchen and new bathroom.
0:16:15 > 0:16:17The rest of the house,
0:16:17 > 0:16:21the wallpaper needs to be brought down and reskimmed.
0:16:21 > 0:16:24Just general decor.
0:16:24 > 0:16:31'Once those improvements are done, what sort of return could the new owner get on this place?'
0:16:31 > 0:16:36You're looking at anywhere between £230,000 and £240,000.
0:16:36 > 0:16:42'What could an investor earn on the rental market per calendar month?'
0:16:42 > 0:16:45Rental value would be between £900 and £1,000.
0:16:45 > 0:16:51You get a lot of house for that £150,000 to £160,000 guide price.
0:16:51 > 0:16:55There's the garden, great original features and lots of woodchip!
0:16:55 > 0:17:01There is a bit of work to do, but it's a great investment property
0:17:01 > 0:17:04and, I think, a real family home.
0:17:04 > 0:17:08Let's see who takes the winning bid, as we go to auction.
0:17:12 > 0:17:16So, lot 196. 120, I have. 120.
0:17:16 > 0:17:18130. 140.
0:17:18 > 0:17:21150?
0:17:21 > 0:17:22160.
0:17:22 > 0:17:26165 anywhere? 165, thank you, sir. 167 and a half?
0:17:26 > 0:17:30167 and a half. 170?
0:17:30 > 0:17:32170. 72 and a half?
0:17:32 > 0:17:34172 and a half. 175?
0:17:34 > 0:17:36175. 177 and a half?
0:17:37 > 0:17:39177 and a half.
0:17:39 > 0:17:42Thank you. 180?
0:17:44 > 0:17:48180. 82 and a half?
0:17:48 > 0:17:50First time at 180.
0:17:52 > 0:17:54181. 182? 82. 83?
0:17:54 > 0:17:5684?
0:17:58 > 0:18:0284? 85? First time at 185,000.
0:18:02 > 0:18:04Are you sure? 186.
0:18:04 > 0:18:07187? 187. 188?
0:18:07 > 0:18:11Are you sure? First time at 187,000.
0:18:11 > 0:18:14Second time at 187,000.
0:18:14 > 0:18:19Third and last time at £187,000. It's your bid. It's yours.
0:18:19 > 0:18:25'That successful bid of 187,000 came from Les and Belinda.
0:18:25 > 0:18:31'They bought this property to help their 23-year-old daughter, Emma, onto the property ladder.
0:18:31 > 0:18:35'I went to meet Les and Emma.'
0:18:35 > 0:18:37- Congratulations.- Thank you.
0:18:37 > 0:18:43- I heard that you have looked at this house for the first time today.- Yeah.
0:18:43 > 0:18:47- You had not seen this house. - Only from the outside.
0:18:47 > 0:18:49Today, you got the keys. Here.
0:18:49 > 0:18:56- Opened the front door. What did you think?- Lots of newspapers. - "What a mess!"
0:18:56 > 0:19:00Pleasantly surprised. It's got loads of potential. Yeah. Very pleased.
0:19:00 > 0:19:06Les, weren't you worried about spending all that money and not going inside?
0:19:06 > 0:19:14To be falling down there has to be something seriously wrong with the houses either side.
0:19:14 > 0:19:18We did poke our heads through the letterbox. It's a nice house.
0:19:18 > 0:19:23The front lounge is very nice. It's got lovely big windows.
0:19:23 > 0:19:29- I'm in two minds whether to keep the windows.- Let's talk about this.
0:19:29 > 0:19:33- To what?- A number of houses have all got double glazing.
0:19:33 > 0:19:37This is single glazed and there is an energy efficiency issue.
0:19:37 > 0:19:39I know.
0:19:39 > 0:19:43They're very attractive, so I'm in two minds.
0:19:43 > 0:19:48'What a choice! To be eco-friendly or keep the character?
0:19:48 > 0:19:53'They bought it to put Emma on the first rung of the property ladder.
0:19:53 > 0:19:55'How did they finance it?'
0:19:55 > 0:20:00We realised that Emma couldn't get on the property market.
0:20:00 > 0:20:08We thought that if we borrowed money against our home now, at such low interest rates, for a fixed period,
0:20:08 > 0:20:13during that period, we're hoping to buy a couple of properties,
0:20:13 > 0:20:15doing each up and selling on,
0:20:15 > 0:20:20at the end of which, making her enough to afford a deposit herself
0:20:20 > 0:20:22on a property that she can have.
0:20:22 > 0:20:25That's a great way of looking at it, Les.
0:20:25 > 0:20:32- To borrow money at the moment is cheap.- Yeah, it is. I'd recommend anybody to give it a go.
0:20:32 > 0:20:37Emma, that is an incredibly generous thing your dad has done for you.
0:20:39 > 0:20:42How do you really feel? It's quite incredible.
0:20:42 > 0:20:45It is. I'm quite flattered.
0:20:45 > 0:20:50But...together, there's enough belief that it would work.
0:20:50 > 0:20:55That it wouldn't be as big a gamble as it seems at the beginning.
0:20:55 > 0:21:00'The budget is up to £30,000 and the planned time scale is six months.
0:21:00 > 0:21:06'Emma will project manage. Les and her brother Jimmy, an apprentice plumber, will do the work.
0:21:06 > 0:21:09'So, what needs to be done?'
0:21:09 > 0:21:14Install a new kitchen. Change the disabled wet room into a bathroom.
0:21:14 > 0:21:18Take out the water heater, so it's a combi-boiler going in.
0:21:18 > 0:21:23- Taking down all the woodchip. - LES LAUGHS
0:21:23 > 0:21:25Get rid of the Artex ceiling.
0:21:25 > 0:21:30- Your brother, what's his involvement going to be?- Doing what I say!
0:21:30 > 0:21:33You two must get along swimmingly.
0:21:33 > 0:21:38- No, we have our moments. - Tell me what he's going to be doing.
0:21:38 > 0:21:44General helping get things prepared for when they've got to plaster.
0:21:44 > 0:21:49He's kind of been roped in without a choice!
0:21:49 > 0:21:56'Hm. It may be time to have a chat with her brother Jimmy to see how he feels.'
0:21:56 > 0:22:01Emma said, "I'm going to tell him what to do and he's going to do it."
0:22:01 > 0:22:03- Is that right?- Basically, yes.
0:22:03 > 0:22:10- Is she really the boss of this project?- It's mainly her project so she's going to tell me what to do.
0:22:10 > 0:22:13- How's that going to feel? - Really hard.
0:22:14 > 0:22:19'He may not be looking forward to being bossed around by his sister,
0:22:19 > 0:22:22'but what does he think about the house?'
0:22:22 > 0:22:29It's a very nice house. I'd love to keep most of its features.
0:22:29 > 0:22:32It's got so many characteristics.
0:22:32 > 0:22:36There's not much to do, just new bathroom, new kitchen.
0:22:36 > 0:22:39Bring it up to date and that's about it.
0:22:40 > 0:22:44'Les and his wife have made a big decision,
0:22:44 > 0:22:50'remortgaging their house to buy this investment property for Emma.
0:22:50 > 0:22:56'They hope that after a couple of properties she'll have enough profit to buy a flat.
0:22:56 > 0:22:59'Was there no other way to do this?'
0:22:59 > 0:23:03I haven't got any other money, other than what's tied up in our home.
0:23:03 > 0:23:10We released some of that to give Emma an opportunity. If it works, it may work for our son as well.
0:23:11 > 0:23:16Emma is a lucky girl to have her whole family working hard for her.
0:23:16 > 0:23:21I fear there may be trouble ahead. Will Emma and Jimmy see eye to eye?
0:23:21 > 0:23:26Will Les follow his heart and keep those original wooden windows
0:23:26 > 0:23:29or opt for energy efficient uPVC ones?
0:23:29 > 0:23:33Stay tuned and you can find out later on.
0:23:36 > 0:23:41'Coming up, the outside of this shop doesn't look bad, but inside...'
0:23:41 > 0:23:43This has been thrown together.
0:23:44 > 0:23:50'We return to Croydon where the new owners have been bagging bargains.'
0:23:50 > 0:23:54There was a sign that said, "Please take me away."
0:23:56 > 0:24:01'But first, it's all been going on in this property in Derbyshire.'
0:24:01 > 0:24:03We've had to take walls down, put walls up.
0:24:06 > 0:24:10MUSIC: "Poker Face" by Lady Gaga
0:24:10 > 0:24:16'Poker-playing pals Phil and Dave are going all-in on a business venture.
0:24:16 > 0:24:21'They bought this three-bedroom house in Chesterfield for £57,500.
0:24:21 > 0:24:29'With backgrounds in construction and quantity surveying, they were confident they could cope.'
0:24:29 > 0:24:33With the skills that we've got, practically and technically,
0:24:33 > 0:24:38with the amount of work, we're both capable of doing that work.
0:24:38 > 0:24:43'Just three months later, let's see if they are all talk and no action.
0:24:45 > 0:24:50'They've transformed the interior, redecorating throughout
0:24:50 > 0:24:54'and adding stylish new features.
0:24:57 > 0:25:02'It looks like there's been some structural work done, too.'
0:25:05 > 0:25:08We've had to take walls down, put walls up.
0:25:08 > 0:25:12We've had plastering to do, a lot of making-good to do.
0:25:12 > 0:25:15We've had new woodwork throughout.
0:25:15 > 0:25:20We've had problems with windows - our fair share of everything.
0:25:20 > 0:25:26It's also had a full rewire, a full central heating system and water system as well.
0:25:26 > 0:25:28Everything's gone on!
0:25:28 > 0:25:32'Good grief! It's been a complete overhaul.
0:25:32 > 0:25:38'Phil and Dave have done a professional job. The kitchen's seen the biggest change.'
0:25:38 > 0:25:42We had some walls in here we had to take down.
0:25:42 > 0:25:47We had one that ran this way, quite a large wall we had to remove.
0:25:47 > 0:25:52We had a second wall that ran down this location that had to come out.
0:25:52 > 0:25:59We had a third wall parallel to this wall, the entrance to the kitchen,
0:25:59 > 0:26:02which had to come down to give us a dining area.
0:26:02 > 0:26:05We're very glad we took it down.
0:26:05 > 0:26:10'Removing those walls has certainly been worth it.
0:26:10 > 0:26:14'There's now a wide open, airy family space.
0:26:17 > 0:26:20'They've taken walls down downstairs.
0:26:20 > 0:26:23'Have they put them up upstairs?'
0:26:23 > 0:26:27One of the significant changes that we made upstairs
0:26:27 > 0:26:29was to convert this bedroom
0:26:29 > 0:26:32into two bedrooms.
0:26:32 > 0:26:37The reason we did that was we felt that would make it more saleable.
0:26:37 > 0:26:42There aren't many four-bedroom properties in this price range.
0:26:42 > 0:26:48We thought that would be attractive for people planning families. It would make it more saleable.
0:26:48 > 0:26:51'Hopefully, converting that bedroom
0:26:51 > 0:26:54'will add value as well as making it more attractive.
0:26:54 > 0:27:00'There are finishing touches to do, but most of the hard graft is done.
0:27:00 > 0:27:05'How have they fitted this around their day jobs?'
0:27:05 > 0:27:09We've worked all the weekends since we got the property,
0:27:09 > 0:27:12and some late evenings.
0:27:12 > 0:27:16It's been worthwhile. We've got the project to where we need it to be.
0:27:16 > 0:27:22'Dave had just become a new dad when he started this venture.'
0:27:22 > 0:27:27It has been difficult. I'd like to have been home a little bit more.
0:27:27 > 0:27:32I've been supported very well, so it's made it easy to do.
0:27:32 > 0:27:38My partner came and gave us a lot of help. She's been very supportive.
0:27:38 > 0:27:42She's been bringing us things when we needed it. It's been fantastic.
0:27:42 > 0:27:46'That kind of support makes all the difference
0:27:46 > 0:27:49'when doing renovations in your spare time.
0:27:49 > 0:27:51'How long has it taken?'
0:27:51 > 0:27:53The aim was three months.
0:27:53 > 0:27:57We're going to slip over by a couple of weeks.
0:27:57 > 0:28:04- But we're roughly on target. - Yeah. We've had our fair share of problems, which cost us time.
0:28:04 > 0:28:08'The trouble with problems is that they usually cost money too.
0:28:08 > 0:28:12'Replastering was their biggest expense,
0:28:12 > 0:28:15'but they made savings in other areas.'
0:28:15 > 0:28:21The best bargain that we got was the bathroom suite for £89.
0:28:21 > 0:28:26Which was fantastic, cos we'd budgeted quite a bit more for that.
0:28:26 > 0:28:31The kitchen was £1,700, but we budgeted a lot more than that.
0:28:31 > 0:28:36It was over £3,000 in the first instance, so that was good as well.
0:28:36 > 0:28:39'These two seem pretty switched on,
0:28:39 > 0:28:43'but what's been their total spend so far, precisely?'
0:28:45 > 0:28:50£15,715.39p
0:28:50 > 0:28:54We've got another £150, £200 to spend on top of that.
0:28:54 > 0:29:01So we'll be slightly over budget, but we're more than satisfied with the overspend.
0:29:01 > 0:29:05'Phil and Dave are keen poker players and used to play every week.
0:29:05 > 0:29:09'Has there been any time for that since getting into development?'
0:29:09 > 0:29:14We've carried on playing poker, usually on a Friday evening.
0:29:14 > 0:29:17I play twice a week. You play once.
0:29:17 > 0:29:22I've cut my hours back to try and maintain a family balance.
0:29:22 > 0:29:27'So, poker games are still on the go - if less often than before.
0:29:27 > 0:29:34'Phil and Dave have staked around £73,000 on this house so far.
0:29:34 > 0:29:36'Has their gamble paid off?
0:29:36 > 0:29:39'Let's find out what two experts think.'
0:29:39 > 0:29:43It's become a spacious house. They've made four bedrooms.
0:29:43 > 0:29:47It's debatable whether that was good or not.
0:29:47 > 0:29:50They demand more space downstairs
0:29:50 > 0:29:54than just one reception room and a diner-kitchen.
0:29:54 > 0:29:58Overall, the impression of what's been achieved is very positive.
0:29:58 > 0:30:02It's clean. It's well-fitted and should sell OK.
0:30:02 > 0:30:07The standard of finish is OK. They've renovated it quite well.
0:30:07 > 0:30:10It's all double glazed
0:30:10 > 0:30:12and central heated.
0:30:12 > 0:30:16The fourth bedroom makes it ideal for a larger family.
0:30:16 > 0:30:19They haven't put off-road parking in.
0:30:19 > 0:30:24'True, but Phil and Dave are still waiting for planning permission.
0:30:24 > 0:30:31'They've prepared the front garden for the new owner to complete.
0:30:31 > 0:30:37'They bought the property for £57,500 and spent nearly £16,000.
0:30:37 > 0:30:42'That's a total spend of around £73,000, plus fees and expenses.
0:30:42 > 0:30:46'Could they make a profit if they sold the house?'
0:30:46 > 0:30:51Having seen it now, this would probably go on the market
0:30:51 > 0:30:56between 90,000 and 95,000 and I would expect them to get £90,000.
0:30:56 > 0:31:00I would sell this property at between £90,000 and £95,000.
0:31:00 > 0:31:06- We're not going to run into any difficulties on that.- No.
0:31:06 > 0:31:08Not bad at all, really.
0:31:11 > 0:31:15'If they decided to step into the rental market,
0:31:15 > 0:31:20'what could they expect per calendar month?'
0:31:20 > 0:31:26In terms of rental value, I would say between £525 and £550 a calendar month.
0:31:26 > 0:31:34I would expect to achieve a rental figure of this property of between £500 and £525 per calendar month.
0:31:34 > 0:31:39- It's what we were expecting.- Yeah. - Probably about 550, maybe 575.
0:31:39 > 0:31:45But, yeah, we hoped for 550 and we'd be happy with that, really.
0:31:45 > 0:31:52'Since filming, Phil and Dave have put the house on the market for £109,950,
0:31:52 > 0:31:55'with planning permission to lower the kerb.
0:31:55 > 0:31:58'Sounds like they're a winning pair.'
0:31:58 > 0:32:03When it comes to Friday nights, there's no friends in poker.
0:32:03 > 0:32:07We'll stay rivals at poker but, in terms of property,
0:32:07 > 0:32:11- we're on the right track to move forward, aren't we?- Definitely.
0:32:17 > 0:32:2350 minutes' car or train ride from Glasgow, you find yourself in West Kilbride in Ayrshire.
0:32:23 > 0:32:27This place is famous for Ayrshire potatoes,
0:32:27 > 0:32:30fertilised by seaweed washed up on local shores.
0:32:30 > 0:32:35For that reason, this town's also known as Tatty Toon.
0:32:37 > 0:32:41'It's not just tatties on the menu in West Kilbride.
0:32:41 > 0:32:46'There's a craft and design movement generating a lot of interest.
0:32:46 > 0:32:50'The main objective is to regenerate the town centre.
0:32:50 > 0:32:55'Several empty shops have been converted into studio accommodation
0:32:55 > 0:32:58'and gallery space.'
0:32:58 > 0:33:00So, what was up for auction?
0:33:00 > 0:33:06On the High Street, a commercial premises at a guide price of £25,000 to £30,000.
0:33:06 > 0:33:08Let's take a look inside.
0:33:08 > 0:33:13OK, well, let's start from the outside and work backwards.
0:33:13 > 0:33:15Not a bad frontage.
0:33:15 > 0:33:20Big bit of glass, important, depending on what you're selling.
0:33:20 > 0:33:23Then, basically, one big room.
0:33:24 > 0:33:28Condition? Doesn't look brilliant at first glance.
0:33:28 > 0:33:32But...25,000 to 30,000 quid, remember!
0:33:32 > 0:33:37However, through the back here, it goes decidedly downhill.
0:33:37 > 0:33:42Out here, you just get the feeling this has just been thrown together.
0:33:42 > 0:33:45It feels like it's in a right old state.
0:33:45 > 0:33:48Not least at the back door.
0:33:48 > 0:33:53There's supposed to be a lintel, which would support the wall above.
0:33:53 > 0:33:58There is nothing supporting those bricks and they could fall down.
0:33:58 > 0:34:03'That means, if you don't sort it out, you could be in danger.
0:34:03 > 0:34:06'Time for me to make an exit and look upstairs.
0:34:09 > 0:34:15'This lot hasn't got planning permission for residential status.
0:34:15 > 0:34:20'It does look as though someone may have had the odd nap here.
0:34:20 > 0:34:24'This whole upper floor needs to be altered.
0:34:24 > 0:34:28'Once renovated, this would be an ideal storeroom and staff room
0:34:28 > 0:34:33'with tea-making facilities plus somewhere to freshen up.
0:34:35 > 0:34:41'That's the inside, what there is of it, so let's get some fresh air.'
0:34:41 > 0:34:43Here at the rear,
0:34:43 > 0:34:49maybe there's some light at the end of the scope-for-improvement tunnel for this property.
0:34:49 > 0:34:54Sadly not. You'd like to think you could get access in.
0:34:54 > 0:34:57Maybe the possibility of a flat upstairs.
0:34:57 > 0:35:00Your hopes are going to be dashed.
0:35:00 > 0:35:04All this area out the back? You don't own it. Sorry.
0:35:06 > 0:35:09'There's the possibility of buying it in the future,
0:35:09 > 0:35:14'providing the option of creating a second access.
0:35:14 > 0:35:19'I asked a local estate agent what she thought new owners should do.'
0:35:19 > 0:35:24In my opinion, they should retain it as a commercial unit.
0:35:24 > 0:35:27To spruce up the front shop area,
0:35:27 > 0:35:31retain the upper two rooms as storage units.
0:35:31 > 0:35:36It's a conservation village so we would need to consider how planning
0:35:36 > 0:35:39would look at converting upstairs into residential units.
0:35:39 > 0:35:43I feel they'd be better kept as storeroom areas.
0:35:43 > 0:35:50'The commercial unit, once renovated, would rent for between £3,500 and £4,000 per annum.
0:35:50 > 0:35:56'To build a flat upstairs you'd have to buy the land at the back,
0:35:56 > 0:35:59'get planning permission then build the flat itself.
0:35:59 > 0:36:03'The building had a guide price of £25,000 to £30,000.
0:36:03 > 0:36:06'So, would it be worth the trouble?'
0:36:06 > 0:36:09The market for one-bedroom properties
0:36:09 > 0:36:12can range anywhere from 40,000 upwards.
0:36:12 > 0:36:18'If you can get flats for £40,000, it may not be worth building one above this shop.'
0:36:18 > 0:36:22Realistically, the options for this place are limited.
0:36:22 > 0:36:27Its potential is all down to whoever buys it and what they decide to do.
0:36:27 > 0:36:31It's about research. What is needed in this town?
0:36:31 > 0:36:35Let's see who went for it when it went under the hammer.
0:36:39 > 0:36:42Lot 35. This is a lock-up commercial unit.
0:36:42 > 0:36:49I'm going to start the bidding at £15,000. Any advance at 15? £15,000.
0:36:49 > 0:36:52Any advance at all? £16,000. 17. Anybody else?
0:36:52 > 0:36:54£18,000. £19,000.
0:36:54 > 0:36:56£20,000.
0:36:56 > 0:36:59£21,000. 22. I can go 23.
0:36:59 > 0:37:03£24,000. 25. Here 25. I'll go back to you.
0:37:03 > 0:37:0626 if you want it. 26. 27.
0:37:06 > 0:37:0928? Give you the first chance. I've got 29.
0:37:09 > 0:37:1430, sir? 30. I'm out. £30,000. Go 500. You're out as well.
0:37:14 > 0:37:18Yours at 30 at the moment. Anybody else coming in at £30,000?
0:37:18 > 0:37:20I can go no further. £30,000.
0:37:20 > 0:37:23Sold to you, sir. Your number is...
0:37:23 > 0:37:30'That bid of £30,000 was made by George, a semi-retired chartered accountant.
0:37:30 > 0:37:32'I went to meet him
0:37:32 > 0:37:37'to find out what he had planned for this former clothes shop.'
0:37:37 > 0:37:42- George! Congratulations.- Thank you. - Tell me why you wanted this place.
0:37:42 > 0:37:48I'd been looking round for a wee while for the possibility of opening a book shop.
0:37:48 > 0:37:51- Why a book shop?- Interest in books.
0:37:51 > 0:37:55Independent book shops are great places.
0:37:55 > 0:37:59And books are great things so, hopefully, the market stays.
0:37:59 > 0:38:06- What do you do at the moment? - I'm more or less retired. I was a chartered accountant.
0:38:06 > 0:38:12Some friends were made redundant and I realised how difficult it was for people to find jobs.
0:38:12 > 0:38:19I thought maybe I've got the opportunity to create something with a job and why not go for it?
0:38:19 > 0:38:24- So you created it for yourself as a job?- No. For somebody else.
0:38:24 > 0:38:29- You're not going to run it? - No. I have somebody to run it, so I'll create a job.
0:38:29 > 0:38:33- Who is this person? - Well, I have somebody in mind. Yes.
0:38:33 > 0:38:36I'm a member of a writers' cooperative
0:38:36 > 0:38:38and she has lost her job.
0:38:38 > 0:38:45If she still hasn't found employment hopefully she'll agree to be the manageress here.
0:38:45 > 0:38:49- Wow! Does she know? - Yeah. I've mentioned it to her.
0:38:49 > 0:38:53But on the basis that if she can find something better, go for that.
0:38:53 > 0:38:58If not, here. And if not, I'll have a job for somebody else.
0:38:58 > 0:39:05'That's great that George will be creating a job, but is it really the right financial climate?'
0:39:05 > 0:39:07I just think that in a recession,
0:39:07 > 0:39:11if nobody invests in anything, we won't come out of it.
0:39:11 > 0:39:15If it works, it works. If it doesn't, I'll do something else.
0:39:15 > 0:39:20I love book shops. I could spend hours in a good book shop.
0:39:20 > 0:39:24What are you going to achieve? What's it going to be like inside?
0:39:24 > 0:39:29It will be a general book store. People will be able to order books.
0:39:29 > 0:39:35A personal service, a local book shop like a traditional book shop.
0:39:35 > 0:39:42We'll maybe stock titles that you wouldn't normally find in the mainline book shops.
0:39:42 > 0:39:46'What "volume" of work does George think this property needs
0:39:46 > 0:39:49'before it starts a new "chapter" in its life?'
0:39:49 > 0:39:53In the front, there's not a huge amount.
0:39:53 > 0:39:57Fitting the bookcases is basically it. We'll see when we get in.
0:39:57 > 0:40:01The back will be relined and the ceiling sorted out.
0:40:01 > 0:40:06The lintel will be fixed. Laminate flooring put in, some bookcases.
0:40:06 > 0:40:08There'll be a little area there.
0:40:08 > 0:40:11Possibly for children.
0:40:11 > 0:40:17I don't think fire's a problem. We'll make sure that's an opening door!
0:40:17 > 0:40:22Upstairs, we'll look at later, but potentially open up the front room,
0:40:22 > 0:40:24so it's a bigger area.
0:40:24 > 0:40:28'What about the "novel" idea of turning upstairs into a flat?'
0:40:28 > 0:40:32I don't think it's very likely. You've got problems with access.
0:40:32 > 0:40:36If you wanted access round the back it's difficult
0:40:36 > 0:40:39cos of use of the ground.
0:40:39 > 0:40:45The only real possibility would be to take down the low level bit
0:40:45 > 0:40:49and extend upwards, but we're a conservation area.
0:40:49 > 0:40:51And when you did all that work,
0:40:51 > 0:40:57- I doubt the money would be in the flat. - It's not worth it.- I don't think so.
0:40:57 > 0:41:02'I think he's right. The upstairs flat does seem like a fantasy.
0:41:02 > 0:41:06'What's his budget for the book shop?'
0:41:07 > 0:41:11My guess is that the whole thing will cost around 60.
0:41:11 > 0:41:14We spent 30 on the shop so I've got 30 to do the rest.
0:41:14 > 0:41:18'So, £30,000 to purchase the property
0:41:18 > 0:41:22'plus £30,000 to do the renovations and buy the stock.
0:41:22 > 0:41:28'As a literature lover myself, I had another question to ask.'
0:41:28 > 0:41:30What books will you definitely have?
0:41:30 > 0:41:33Oh! That's a good question! LAUGHS
0:41:33 > 0:41:38I'm not really sure. We'll definitely have local authors.
0:41:38 > 0:41:43Scottish interest, something to do with the Clyde coast area.
0:41:43 > 0:41:50We'll definitely have arts and crafts books and we'll have some author events and poetry readings.
0:41:52 > 0:41:57'One of the first events that will need planning is the opening.'
0:41:57 > 0:42:03George's plans are lovely. However, these are tough times for any commercial venture.
0:42:03 > 0:42:09I think speciality shops are better placed and, with what's happening in West Kilbride,
0:42:09 > 0:42:12hopefully, the odds are stacked in George's favour.
0:42:12 > 0:42:15Find out, later in the show.
0:42:18 > 0:42:22The months have slipped by since we last met our intrepid buyers.
0:42:22 > 0:42:28- So, has the restoration been a joy or a chore?- Let's find out.
0:42:30 > 0:42:33'We're back at this three-bedroom terrace in Croydon.
0:42:33 > 0:42:40'Les and Belinda bought it to help their daughter Emma get a foot on the property ladder.'
0:42:40 > 0:42:46Hoping to buy a couple of properties, doing each up and selling on.
0:42:46 > 0:42:51At the end, making her enough money to afford a deposit herself
0:42:51 > 0:42:53on a property she can have.
0:42:53 > 0:42:58'They paid £187,000, even though they hadn't seen inside.
0:42:58 > 0:43:03'Luckily, most of the work was going to be cosmetic.
0:43:03 > 0:43:09'Les and son Jimmy are in the plumbing trade and hoped to do most themselves.
0:43:09 > 0:43:14'Eight months later, we caught up with them to find out how it went.
0:43:17 > 0:43:21'From the looks of things, Les and Jimmy have been busy.
0:43:21 > 0:43:25'There's a new kitchen with updated appliances and units.
0:43:27 > 0:43:33'New flooring in the dining area, as well as bright modern lighting.
0:43:33 > 0:43:39'Those old windows have been replaced throughout with uPVC ones
0:43:39 > 0:43:43'and every room has been replastered and redecorated.
0:43:45 > 0:43:50'The wet room, suitable for a disabled person, has been replaced
0:43:50 > 0:43:55'with a contemporary suite, new flooring, tiling and a bath.
0:43:55 > 0:43:57'There's a bit of work to do,
0:43:57 > 0:44:01'though the front room is not far off completion.
0:44:01 > 0:44:06'Les is more than happy with that new fireplace - new to HIM.'
0:44:06 > 0:44:10Over here we've got one of our lucky finds,
0:44:10 > 0:44:12something me and my wife picked up.
0:44:12 > 0:44:17We were driving home and my wife spotted it at the side of the road.
0:44:17 > 0:44:22There was a sign on it that said, "Please take me away."
0:44:22 > 0:44:25As you can see, it's a lovely fireplace.
0:44:25 > 0:44:32Some of this detail matches some of the detail around the room.
0:44:32 > 0:44:38'Les and Jimmy have been careful to keep as many period features
0:44:38 > 0:44:41'as intact as they possibly can.'
0:44:41 > 0:44:47We've managed to keep the archway and the little decorative pieces.
0:44:47 > 0:44:50We've kept the ceiling roses.
0:44:50 > 0:44:54Any period features, we were trying to keep.
0:44:54 > 0:44:57And the fireplace actually adds to it.
0:44:57 > 0:45:01It was a new feature and it adds to the rest of it.
0:45:01 > 0:45:05'A few weeks from completion, there haven't been any major problems.
0:45:05 > 0:45:09'The only unexpected hiccup was in the bathroom.'
0:45:09 > 0:45:13We had a problem next door with the floor.
0:45:13 > 0:45:18In putting the wet room tray in, they'd cut away part of the floor.
0:45:18 > 0:45:23So we had to replace part of the floor, but nothing serious.
0:45:23 > 0:45:25Nothing scary!
0:45:28 > 0:45:33'Was it tricky for Emma to project manage her dad and her brother?'
0:45:33 > 0:45:39There were odd moments where you had enough of each other and stomped off. Mainly me and Jimmy!
0:45:39 > 0:45:43We're brother and sister so we naturally argue.
0:45:43 > 0:45:50It's not big things. It starts off as a little argument then we wind each other up and have to leave!
0:45:50 > 0:45:55'It's only fair to get Jimmy's side of the story!'
0:45:55 > 0:45:57We had the odd tiffs.
0:45:57 > 0:46:01She wants something done which can't be done at that time.
0:46:01 > 0:46:05Or something which really couldn't be done.
0:46:05 > 0:46:09It's hard to explain it to her cos she's not in the trade.
0:46:09 > 0:46:14She doesn't understand that things need to be done beforehand.
0:46:14 > 0:46:18Yeah, after a little tiff, it's all worked out all right.
0:46:18 > 0:46:22'There may have been the inevitable sibling rivalry,
0:46:22 > 0:46:28'but Emma and the lads have done all the work so far for £10,000,
0:46:28 > 0:46:31'five grand under their budget of £15,000.
0:46:31 > 0:46:36'The skirting, carpets and bay windows still need attention.
0:46:36 > 0:46:42'It sounds like there was the unexpected cost of a new pipe to factor in, too.'
0:46:42 > 0:46:49We'd isolated most of the pipe work and a pipe running up the kitchen wall had a nodule on it.
0:46:49 > 0:46:54We wanted to find out what it was, the gas pipe or the rising main.
0:46:54 > 0:46:58We isolated all we could for the water supply.
0:46:58 > 0:47:04Jimmy kept touching it and I said, "Leave that alone. It's possibly live."
0:47:04 > 0:47:08It may be gas or water. It was an iron pipe.
0:47:08 > 0:47:13He decided to have another play with it and he hit it with a hammer.
0:47:13 > 0:47:17And I knocked the end off this little knobbly thing.
0:47:17 > 0:47:21The water came out and threw him across the room!
0:47:21 > 0:47:25I'm standing with my finger in the hole. Dad's trying to turn it off.
0:47:25 > 0:47:28A bit silly, really.
0:47:28 > 0:47:30Got very wet that day.
0:47:30 > 0:47:33'Well, that'll teach him.
0:47:33 > 0:47:38'We asked two local property experts what they thought of the place.'
0:47:43 > 0:47:49They've done all the right things. Some bedrooms have feature walls.
0:47:49 > 0:47:54They've used wallpaper to bring some personality, but not too much.
0:47:54 > 0:47:58Just the right amount to show people what they could carry on with.
0:47:58 > 0:48:04They've changed all the windows, which is good. The wood flooring.
0:48:04 > 0:48:07Prospective purchasers look for these things.
0:48:07 > 0:48:14They've taken what would have been a small kitchen and made it a useful space.
0:48:14 > 0:48:17It's fantastic. They've used that space wisely.
0:48:17 > 0:48:22It's a very good location and it's done to a very good standard.
0:48:22 > 0:48:27'Remember, they bought the property for £187,000
0:48:27 > 0:48:29'and have spent £10,000 on it.
0:48:29 > 0:48:33'To kick start Emma's savings for her house,
0:48:33 > 0:48:38'it needs to resell for more than £197,000 to make any profit.'
0:48:38 > 0:48:46I think they'll achieve somewhere between £240,000 and £250,000 on the resale.
0:48:46 > 0:48:53The property, once it's finished, is worth between £245,000 to £250,000.
0:48:53 > 0:48:57Very pleased. More than we thought. BOTH LAUGH
0:48:57 > 0:49:01'So, a fantastic potential profit to be had.
0:49:01 > 0:49:06'It looks like that hard work will pay off, despite family tiffs.
0:49:06 > 0:49:09'What's the plan once this is finished?'
0:49:09 > 0:49:13We've got some work to do before we start another property,
0:49:13 > 0:49:17but Emma's going to be looking for the next house.
0:49:17 > 0:49:24Then, hopefully, by the time we end the work we'll be ready to start on her property again.
0:49:24 > 0:49:26Fingers crossed!
0:49:28 > 0:49:30'We're back...'
0:49:30 > 0:49:33# Down main street... #
0:49:33 > 0:49:36'..in West Kilbride, Ayrshire.
0:49:37 > 0:49:41'We've returned to see how this former clothes shop has changed
0:49:41 > 0:49:47'since semi-retired chartered accountant George bought it for £30,000
0:49:47 > 0:49:52'to turn it into a book shop, create a job and help the economy.'
0:49:52 > 0:49:58In a recession, if nobody invests in anything, we're not going to come out of it.
0:49:58 > 0:50:02If it works, it works. If it doesn't, I'll do something else.
0:50:02 > 0:50:05'The front of the shop was in fairly good condition
0:50:05 > 0:50:08'but is now fit for purpose.
0:50:08 > 0:50:12'It's been freshly painted and a new flooring laid.
0:50:12 > 0:50:15'The walls are lined with shelves full of stock.
0:50:15 > 0:50:19'The problem was always going to be the back room.
0:50:26 > 0:50:29'Wow! That's a big improvement!
0:50:29 > 0:50:32'It's been transformed into a children's area.'
0:50:32 > 0:50:38In here, the floor had been brought to the level of the first step.
0:50:38 > 0:50:44So we dropped that down, which made this a proper size doorway.
0:50:44 > 0:50:47That meant we had to create the two steps.
0:50:47 > 0:50:52This was lined with really bad plaster boarding.
0:50:52 > 0:50:57So we took all that out, relined it and changed the ceiling level,
0:50:57 > 0:50:59to give us better square.
0:50:59 > 0:51:04We fixed a lintel at the back door and put a new door in.
0:51:04 > 0:51:07Now it opens much easier.
0:51:07 > 0:51:10Then kitted this out as a children's area.
0:51:10 > 0:51:14Mainly, this is an area that works really well for children.
0:51:14 > 0:51:16They love coming through.
0:51:16 > 0:51:21'George's dream of owning a book shop is no longer fiction.
0:51:21 > 0:51:25'Less of a dream and more of a nightmare was the upstairs.
0:51:25 > 0:51:32'Even though there's no residential planning permission, someone may have been sleeping here.
0:51:34 > 0:51:38'George has renovated this top floor and turned it into a staff room,
0:51:38 > 0:51:41'including a kitchen.
0:51:41 > 0:51:44'And a shower room.
0:51:46 > 0:51:51'George always planned to create a job for friend Mo, if she wanted it.
0:51:51 > 0:51:54'Like all happy endings, she did.'
0:51:54 > 0:51:59I absolutely love it. I love the connection with the customers.
0:51:59 > 0:52:01It's a friendly village.
0:52:01 > 0:52:05I love sitting in a book shop. It's my passion!
0:52:05 > 0:52:10It's a job that I'm perfectly suited to and I'm happy in.
0:52:10 > 0:52:15Mo has been involved in organising the layout of the whole shop.
0:52:15 > 0:52:21The window displays have been a big part of it. Mo runs the place.
0:52:21 > 0:52:23'As well as selling books,
0:52:23 > 0:52:27'their plan was to make special events a key feature.'
0:52:27 > 0:52:33We have 14 events lined up with novelists and poets.
0:52:33 > 0:52:36Hopefully, they will be well attended.
0:52:38 > 0:52:45'How long has it taken to do the work and get the books flying off those new shelves?'
0:52:45 > 0:52:48We wanted to be open as quickly as possible.
0:52:48 > 0:52:50I got the builder organised quickly
0:52:50 > 0:52:56so it was only nine weeks from getting the keys until we had our opening.
0:52:56 > 0:53:01The opening was by the local MSP. We had an event. That went well.
0:53:01 > 0:53:04We had people reading poetry in the back shop
0:53:04 > 0:53:09who came at one o'clock and didn't leave till after seven at night.
0:53:09 > 0:53:14We put in a lot of work to get open in time, but it was worth it.
0:53:14 > 0:53:21'George bought the shop at auction for 30,000 and had 30 for renovations and stock.
0:53:21 > 0:53:26'A chartered accountant, he probably kept an eye on the other books.'
0:53:26 > 0:53:31We've been pretty close to budget. We've spent more on some areas.
0:53:31 > 0:53:39The total I'd set aside was 60,000, that included kitting out and the stock and the work we wanted to do.
0:53:39 > 0:53:46We've probably come in maybe 10% under budget, so I'm really happy with how everything's worked out.
0:53:46 > 0:53:51'West Kilbride is becoming one of Scotland's premier craft towns.
0:53:51 > 0:53:57'Its regeneration depends on people like George and Mo starting small businesses.
0:53:57 > 0:54:03'To find out if they're heading in the right direction,
0:54:03 > 0:54:06'we invited two local estate agents.'
0:54:06 > 0:54:10My first impressions are that it has been well modernised.
0:54:10 > 0:54:14They have maximised use of the ground floor
0:54:14 > 0:54:18with all of it being given over to retail space.
0:54:18 > 0:54:22All of the ancillary accommodation has been moved upstairs,
0:54:22 > 0:54:26including the store, the staff toilet and kitchen.
0:54:26 > 0:54:30It's all nice modern, freshly decorated.
0:54:30 > 0:54:35with definitely more space in the back of the property,
0:54:35 > 0:54:38where it was more of a dumping area
0:54:38 > 0:54:42than anything worthwhile using for storage space.
0:54:42 > 0:54:46The staircase is narrow and steep and therefore, the first floor
0:54:46 > 0:54:53can only be used as ancillary space and will never be used for retail purposes.
0:54:53 > 0:54:59'That's not a problem for George, as he never intended using upstairs for anything else.
0:54:59 > 0:55:02'He bought the shop for 30,000
0:55:02 > 0:55:07'and spent another £30,000 renovating and buying stock.
0:55:07 > 0:55:10'How much could he sell it for?'
0:55:10 > 0:55:13With good marketing, in favourable market conditions,
0:55:13 > 0:55:18the vendor could expect a price between £35,000 to £40,000.
0:55:18 > 0:55:25We'd be looking to put this on the market at a "offers in the region of" price of £40,000.
0:55:25 > 0:55:32Their value of between 35 and 40, I would have thought it was nearer to the top end of that.
0:55:32 > 0:55:35They've probably been mildly conservative.
0:55:35 > 0:55:40If someone's looking for shop premises, they're not easy to find
0:55:40 > 0:55:42in a location and at a price you want to pay.
0:55:42 > 0:55:45Yeah. About that, I'd be happy with.
0:55:45 > 0:55:50'If George decided he wanted to rent the shop out,
0:55:50 > 0:55:54'how much could he expect it to earn?'
0:55:54 > 0:56:01Subject to favourable leasing terms, a fair rent would be between £3,500 and £4,000 per annum.
0:56:01 > 0:56:08We would rent this out at between £3,600 and £4,200 per annum.
0:56:08 > 0:56:12I suppose, if I wanted to move the shop to somewhere else
0:56:12 > 0:56:14that might be of interest,
0:56:14 > 0:56:18but it's really kind of academic at the moment.
0:56:21 > 0:56:24'This latest chapter in George's life
0:56:24 > 0:56:27'seems to suit him down to the ground.
0:56:27 > 0:56:30'What's next on the agenda for him?'
0:56:30 > 0:56:35Where we go from here? I think we just make this a success.
0:56:35 > 0:56:43Really, we're based in this village, we're going to grow in this village and become a success, I think.
0:56:43 > 0:56:48'Hopefully, this shop will become a best-selling blockbuster.'
0:56:49 > 0:56:53Have today's stories inspired you or put you off?
0:56:53 > 0:56:58More dispatches from the frontline of property developing next time.
0:56:58 > 0:57:01Look forward to seeing you for more Homes Under The Hammer soon.
0:57:22 > 0:57:24Subtitles by Red Bee Media Ltd