0:00:02 > 0:00:06Hello. If you're buying property, you want to buy at the right price.
0:00:06 > 0:00:08So how do you know what the market is doing?
0:00:08 > 0:00:10Is it going up or is it going down?
0:00:10 > 0:00:14One way you can find out is to take a trip down to your local auction house.
0:00:39 > 0:00:44Well, auctions are really exciting and it's very easy to be tempted
0:00:44 > 0:00:48to buy, but to guarantee success, you need to do your homework first.
0:00:48 > 0:00:53So let's find out what properties created interest on today's show.
0:00:54 > 0:00:59In Chatham, Kent, I find that outside appearances can be deceptive.
0:00:59 > 0:01:01Wow! Do you know what?
0:01:01 > 0:01:03This house is like a TARDIS.
0:01:05 > 0:01:09Is it time to ring the changes at this house in Devon?
0:01:10 > 0:01:13- HE RINGS THE BELL - Oh, love that.
0:01:14 > 0:01:20And we revisit a London property we first saw in 2008, when it was just waiting to be developed.
0:01:20 > 0:01:24This is a renovation project on a large, mammoth scale.
0:01:24 > 0:01:29All these properties have been sold at auction and we find out who bought them and what they paid
0:01:29 > 0:01:32for them when they went under the hammer.
0:01:38 > 0:01:39I'm in Chatham, Kent,
0:01:39 > 0:01:43once one of the busiest naval dockyards in the country.
0:01:43 > 0:01:49The HMS Victory, Nelson's flagship at the Battle of Trafalgar, was launched from here in the 18th century.
0:01:54 > 0:01:58So what was up for auction in historic Chatham, you may wonder?
0:01:58 > 0:02:02Well, it was this two-bedroomed, mid-terrace property in a largely residential area.
0:02:02 > 0:02:09My first impressions, well, small, a bit shabby and in need of a good paint job.
0:02:09 > 0:02:12But I know from experience never to judge a book by its cover.
0:02:16 > 0:02:19And the guide price, 55,000 to 65,000.
0:02:22 > 0:02:24In the auction catalogue, the property's described as
0:02:24 > 0:02:28having two bedrooms, a kitchen and three reception rooms.
0:02:28 > 0:02:33How can that many rooms squeeze into such a small house? Let's find out.
0:02:33 > 0:02:37# Can't judge a book by looking at the cover, come on... #
0:02:38 > 0:02:42Step inside and you're straight into the living room.
0:02:42 > 0:02:45Now from the outside, it looks like your standard terrace, two up, two down.
0:02:45 > 0:02:49And move out of the living room and you come to this
0:02:49 > 0:02:54steep flight of stairs and a really long corridor.
0:02:54 > 0:02:57We've got a big old cupboard here and then there's the bathroom
0:02:57 > 0:03:01and the toilet, where you'd expect the kitchen to be, at the back of the property.
0:03:01 > 0:03:06Straightaway, I'm thinking layout issues here, but where is that kitchen?
0:03:06 > 0:03:09Do you think they'd have put it upstairs on the first floor?
0:03:11 > 0:03:15The dark and dingy stairway leads to the bedrooms.
0:03:18 > 0:03:22Both desperately need sprucing up, but they are well proportioned.
0:03:22 > 0:03:25But still, I can't find a kitchen.
0:03:26 > 0:03:30Now I've walked around, I've looked at all the windows in this property and a lot of them are rotting.
0:03:30 > 0:03:33They need replacing, and for the security-conscious
0:03:33 > 0:03:38amongst us, these panes, look, literally slide straight out.
0:03:38 > 0:03:42Now you may think double glazing is relatively expensive, but the long-term benefits can
0:03:42 > 0:03:48extend way beyond simply recouping your investment in cost savings. It helps to keep your house warm.
0:03:48 > 0:03:51The extra insulation provided by double glazing means you can
0:03:51 > 0:03:56you can turn the heating down, saving you money, and for the more environmentally-conscious,
0:03:56 > 0:04:00reducing your CO2 emissions. Fantastic.
0:04:03 > 0:04:08However, of course, the cost of double glazing an entire house could shatter a developer's budget.
0:04:12 > 0:04:14The property has a great garden space, which,
0:04:14 > 0:04:18with lots of work and a little money, could be a major selling point.
0:04:21 > 0:04:23I've explored the ground floor and the first floor.
0:04:23 > 0:04:28Now, it's down to the basement, and hopefully, the kitchen!
0:04:30 > 0:04:34Wow! Do you know what? This house is like a TARDIS.
0:04:34 > 0:04:37There's three rooms down here on the lower ground floor.
0:04:37 > 0:04:42You've got a sort of junk room in there where there's no window and lots of old rubbish piled up.
0:04:42 > 0:04:44A reception room, and there's the kitchen!
0:04:44 > 0:04:47I've found it. It's bolted on to the back of the property.
0:04:47 > 0:04:50You've certainly got a lot of square footage here.
0:04:50 > 0:04:55You would never think this house is this big, hidden away on three levels.
0:04:55 > 0:04:58Clearly, it needs a lot of work in here.
0:04:58 > 0:05:03Completely redecorating, and there's something that does worry me now.
0:05:03 > 0:05:06I think somebody's already been investigating this,
0:05:06 > 0:05:08but look, the carpet's been moved,
0:05:08 > 0:05:10lots of old, dusty old wood everywhere,
0:05:10 > 0:05:17and if you lift up this floorboard, signs of severe rotting joists.
0:05:17 > 0:05:21That with would worry me and it could end up being a costly job.
0:05:24 > 0:05:29The guide price for this house was 55,000 to 65,000.
0:05:31 > 0:05:35I asked a local estate agent for her opinion on it.
0:05:37 > 0:05:39The property is in, erm...
0:05:39 > 0:05:43a state of disrepair and it is going to need a fair amount of work.
0:05:43 > 0:05:47Again, it does have problems with damp and timber
0:05:47 > 0:05:50infestations, so they really do need to be checked out seriously.
0:05:53 > 0:05:56What could the resale value be?
0:05:56 > 0:06:00Once this property's renovated, then I think in this market,
0:06:00 > 0:06:05we'd be looking at around about £105,000 to £110,000.
0:06:07 > 0:06:17- And rental returns?- Generally, we're looking at about £550 per month or £575 per calendar month.
0:06:17 > 0:06:20So this is higgledy-piggledy house.
0:06:20 > 0:06:26It does have character, but it really needs the internal layout to be changed, the lower ground floor needs
0:06:26 > 0:06:30to have the kitchen opened up to get some more light in there, but I do
0:06:30 > 0:06:34think it's unusual and there is a lot of square footage here for the money.
0:06:34 > 0:06:36Let's see what happened when it went under the hammer.
0:06:38 > 0:06:4155, 65, cheap value for this. Where do you want to start me?
0:06:41 > 0:06:43£55,000 to start me?
0:06:43 > 0:06:44Be brave. 55, I'm obliged.
0:06:44 > 0:06:4655, I've got. Now 58.
0:06:46 > 0:06:5058, I want. And 60, and 60 and two.
0:06:50 > 0:06:5462, 62,000, five, 65. 65, I've got.
0:06:54 > 0:06:59And eight, it's against you. 68, at 68. At 68, and 70.
0:06:59 > 0:07:03It's 70 I've got. And two, 72,000.
0:07:03 > 0:07:0772, 72. And five, and five.
0:07:07 > 0:07:1075. £72,000, I've got.
0:07:10 > 0:07:12I'll take one if it helps you, 73.
0:07:12 > 0:07:1774. You won't get another chance for this one, 74,000, and five. 75,000.
0:07:17 > 0:07:20And 76 now.
0:07:20 > 0:07:2476. 76, I've got and seven.
0:07:24 > 0:07:25And seven.
0:07:25 > 0:07:2977, at the back, just the one bidder, though.
0:07:29 > 0:07:31Be brave. Go on, 78,000.
0:07:31 > 0:07:3379, that was nicely done.
0:07:33 > 0:07:35Two. I think that's 79. Is it 79?
0:07:35 > 0:07:37Yes?
0:07:37 > 0:07:39Yes, 79 I've got. 80 now. At 80.
0:07:39 > 0:07:44At £79,000, then, sitting down on the left-hand side. 80, I want.
0:07:44 > 0:07:46Are we all done at £79,000?
0:07:46 > 0:07:48Sale for the first time at 79.
0:07:48 > 0:07:50Second time at 79.
0:07:50 > 0:07:53Third and final time, I'm sure you're all done.
0:07:53 > 0:07:58It's yours at £79,000, and your card number, please.
0:07:58 > 0:08:04It was Richard who sneaked in there with that final bid of 79,000.
0:08:06 > 0:08:10He plans to renovate this property with his son, trainee plasterer, Mark.
0:08:12 > 0:08:16Wow, Richard what an exciting auction that was. Loads of bidders.
0:08:16 > 0:08:18You came in right at the end there.
0:08:18 > 0:08:20- I did.- With that cheeky little bid.
0:08:20 > 0:08:23- Happy with what you paid for this? - I am. £79,000.
0:08:23 > 0:08:26- I mean, that's a good price, isn't it?- Yeah, my maximum was 80.
0:08:26 > 0:08:29- Ooh, do you know what? You really did leave it right till the end...- I know.
0:08:29 > 0:08:33Threw up your bid and then somebody else came in and then you got it on the next one!
0:08:33 > 0:08:36I know, but I was thinking about another property I was going
0:08:36 > 0:08:39to go for, but I went for this one anyway. It was good. It was good.
0:08:39 > 0:08:42So what was it about this property that you liked so much?
0:08:42 > 0:08:48Because for me, when you walk in through the front door, you cannot believe the size of the place.
0:08:48 > 0:08:51- That's right. It is... - To think there is a floor up there, a floor down there.
0:08:51 > 0:08:53You just don't expect that, do you?
0:08:53 > 0:08:57It's kind of quirky, isn't it, with the bathroom at the back there. I thought that was kind of nice.
0:08:57 > 0:09:00I like a big bathroom, I think the trend nowadays is
0:09:00 > 0:09:03for large bathrooms, and I'm not going to move it.
0:09:03 > 0:09:05It's going to stay exactly where it is.
0:09:07 > 0:09:11Richard grew up in Kent and joined the Royal Navy in the early '70s.
0:09:11 > 0:09:15He eventually ended up working in IT before embarking on his career as a property developer.
0:09:15 > 0:09:20He wants to use the renovation of this house to help his son, Mark,
0:09:20 > 0:09:24get more experience and learn other trades.
0:09:24 > 0:09:29So how many years of experience of renovating and decorating and pulling walls down have you had?
0:09:29 > 0:09:33- Five years.- Five years? That's not a huge amount of experience, really?
0:09:33 > 0:09:37No, well, I was an IT consultant before I went into this game,
0:09:37 > 0:09:40but this is far more rewarding, believe me.
0:09:40 > 0:09:42SHE LAUGHS So who is going to do all the work?
0:09:42 > 0:09:44I mean there is a fair bit of work here.
0:09:44 > 0:09:48Come on, there is a lot of work to do. It's in a pretty bad state.
0:09:48 > 0:09:51Well, I shall get my son to come in and do some of the
0:09:51 > 0:09:55stripping the wallpaper and doing the plastering and skirting boards and stuff like that.
0:09:55 > 0:09:59I'll do the laminate flooring, this is just basic stuff.
0:09:59 > 0:10:01I've got to put central heating in here for a start.
0:10:01 > 0:10:06- You do all this work?! - I do everything. - Can you really take all this on?
0:10:06 > 0:10:09I've done it for years. I've always had the policy of,
0:10:09 > 0:10:12if somebody else can come in and do something, why can't I?
0:10:12 > 0:10:14I can do it as well. I'm very practical.
0:10:14 > 0:10:17I'm extremely practical.
0:10:17 > 0:10:23He's going to need to be practical here with those rotting floors and possible issues with damp.
0:10:23 > 0:10:25Richard obviously thrives on challenge.
0:10:25 > 0:10:30He's not scared by the current condition, more excited by the property's potential.
0:10:34 > 0:10:36So what sort of budget have you got to do the work here?
0:10:36 > 0:10:43Well, I've done a preliminary, I reckon about £8,500 to do most
0:10:43 > 0:10:49of the work, because obviously I do it myself so it costs a lot less.
0:10:49 > 0:10:51So how long do you think this project will take you?
0:10:51 > 0:10:53Well, I think between three to four months.
0:10:53 > 0:10:58- So are you going to be spending every waking hour in this house putting it right?- Yeah, if I have to.
0:10:58 > 0:11:01- What does your wife and your son think of all this?- They support me.
0:11:01 > 0:11:04- They support me.- They're happy to lose you to property?
0:11:04 > 0:11:08It was my wife who said, "You need a project."
0:11:08 > 0:11:10She was just trying to get you out of the house! Come on.
0:11:10 > 0:11:12No, no, she wasn't, I don't believe it!
0:11:12 > 0:11:17- So you've certainly got a project on your hands.- I have.
0:11:17 > 0:11:20- It's going to be really exciting finding out how well you do.- Yes.
0:11:20 > 0:11:23- Good luck with this project. - Yes, thank you.
0:11:23 > 0:11:27- And we'll catch up with you soon. Thank you very much, Richard. - All right, thank you.
0:11:27 > 0:11:31You've got to give it to him, Richard is extremely optimistic.
0:11:31 > 0:11:36His enthusiasm is infectious, but I'm worried with a three month time scale and the fact that he's
0:11:36 > 0:11:42going to do all the work himself, I think he may have bitten off a little more than he can chew.
0:11:42 > 0:11:45Find out what happens later on in the programme.
0:11:50 > 0:11:54Today, I'm in Plymouth on the South Devon Coast.
0:11:54 > 0:11:56This harbour city has a rich maritime history
0:11:56 > 0:12:01and it's popular with students studying at the local university.
0:12:03 > 0:12:09I'm here to see a three-bedroomed, mid-terrace, character property that's in a really well established
0:12:09 > 0:12:14residential area. You've got local amenities nearby and the city centre isn't too far away.
0:12:14 > 0:12:17Now, given that similar properties around here sell for well over
0:12:17 > 0:12:24£100,000, the fact that this had a guide price of just £80,000 makes it definitely worth a look.
0:12:26 > 0:12:28The house is in a Victorian terrace,
0:12:28 > 0:12:31which seems to be pretty well maintained.
0:12:31 > 0:12:34It boasts some beautiful architectural features,
0:12:34 > 0:12:37including ornate arches and decorative stone work.
0:12:37 > 0:12:41Let's hope there's more like that behind the front door.
0:12:42 > 0:12:45So what's it like inside?
0:12:45 > 0:12:47- What's that? - RINGS THE BELL
0:12:47 > 0:12:48Oh, I love that.
0:12:48 > 0:12:50An old original bell.
0:12:50 > 0:12:55Fantastic. I wonder how many more original features there will be? That's a good start as well.
0:12:55 > 0:12:57This frosted glass.
0:12:57 > 0:12:59Very typical of the period that this property was built.
0:12:59 > 0:13:04Sadly, the front room looks like some of the original features had been covered up, but maybe
0:13:04 > 0:13:09hiding behind that fireplace there's something a bit more appealing.
0:13:09 > 0:13:13Rear sitting room there and, down this corridor, we've got stairs up to the bedrooms,
0:13:13 > 0:13:15and under stair cupboard, the rear door is there and through
0:13:15 > 0:13:18to the rear of the property where you've got the kitchen.
0:13:18 > 0:13:23Now clearly this is in a right old state. Total refurbishment required.
0:13:23 > 0:13:26Not a bad space and not a bad start.
0:13:28 > 0:13:32The front room is a good size and, if sympathetically restored
0:13:32 > 0:13:35with a period fireplace, could be beautiful.
0:13:35 > 0:13:39The rear sitting room is a bit tight, but could be used to relocate
0:13:39 > 0:13:43a kitchen or bathroom or as an extra bedroom.
0:13:43 > 0:13:47Plenty of original features just still present and I think there's
0:13:47 > 0:13:53a really stunning home here not so far beneath the surface.
0:13:53 > 0:13:57So at the back of the property a little sort of storage area, courtyard here, somewhere to store
0:13:57 > 0:14:03your bikes or coal and something really useful at the back, a little workshop.
0:14:03 > 0:14:07Now that's actually right underneath the upstairs loo so
0:14:07 > 0:14:12an obvious thing to do as far as I'm concerned would be maybe extend the kitchen into this area, maybe make
0:14:12 > 0:14:17this a downstairs loo where you've got the pipe work for the sewage. Definitely worth doing.
0:14:17 > 0:14:23Shouldn't be too much trouble and I think you'd add a lot of value and space to the property.
0:14:23 > 0:14:25So further scope for improvements.
0:14:25 > 0:14:29An extra few feet could be added to the kitchen by knocking through here
0:14:29 > 0:14:31or a downstairs toilet could be put in.
0:14:31 > 0:14:36That would be better than this outside one which has had its day.
0:14:36 > 0:14:40# I'm old-fashioned
0:14:40 > 0:14:44# I love the moonlight... #
0:14:45 > 0:14:49So up the stairs and very typical of these kind of houses,
0:14:49 > 0:14:53especially in the Plymouth area, you've got a mezzanine floor.
0:14:53 > 0:14:59More bedrooms that way, but this bedroom here, oh dear, that's not good, is it? That looks like...
0:14:59 > 0:15:00Ah, yes...
0:15:00 > 0:15:02OK. A bit of plaster work required,
0:15:02 > 0:15:04a bit more than there was before. Sorry about that!
0:15:04 > 0:15:09But anyway, bedroom here, it's nice you've got an original fire, but here is a big problem.
0:15:09 > 0:15:12This is the bathroom of the house. The bathroom and the loo,
0:15:12 > 0:15:16you have to access through one of the bedrooms, that's not ideal.
0:15:16 > 0:15:20So what I'm thinking is, how could you relocate this?
0:15:20 > 0:15:23That downstairs sitting room is an option,
0:15:23 > 0:15:28allowing this back bedroom to be knocked through and enlarged.
0:15:29 > 0:15:32So, really good sized double bedroom.
0:15:32 > 0:15:35Well, almost a triple bedroom at front there. Good to see.
0:15:35 > 0:15:39Great if you'll let this place out. Another good sized bedroom there
0:15:39 > 0:15:42and then a bit of a surprise, some stairs up to...
0:15:42 > 0:15:44Actually up to the roof.
0:15:48 > 0:15:51That's a bit strange.
0:15:52 > 0:15:56Apparently this stairway to heaven led up to an old roof terrace that
0:15:56 > 0:16:00has now been covered over as it was deemed unsafe, but wouldn't it be great
0:16:00 > 0:16:05to reinstate it, particularly since there's so little outside space here?
0:16:05 > 0:16:07Maybe a project for a later date.
0:16:07 > 0:16:10But how does the house stack up at present?
0:16:10 > 0:16:13What does a local property expert think?
0:16:18 > 0:16:22The property is pretty versatile so you could split it into two flats,
0:16:22 > 0:16:27maybe two one-bedroomed flats, obviously subject to requisite consents.
0:16:27 > 0:16:31Mainly a lot of people would be looking at the university letting
0:16:31 > 0:16:36opportunity by room-by-room letting and on top of that, of course, you could turn it into a family home.
0:16:36 > 0:16:38Well a few options there.
0:16:38 > 0:16:41How much could the house earn on the rental market?
0:16:41 > 0:16:47If looking to rent the rooms to the university student, you could fetch £60 per week, per room.
0:16:47 > 0:16:51If the property was a family home and you rented that out,
0:16:51 > 0:16:55it could fetch somewhere in the region of £550 per calendar month.
0:16:55 > 0:16:59What if the property is sold on after renovation?
0:16:59 > 0:17:02Flats along here at the moment tend to be fetching
0:17:02 > 0:17:05somewhere in the region of £75,000 to £80,000 for a one bedroom unit.
0:17:05 > 0:17:08And as a single three-bed family home?
0:17:08 > 0:17:11Depending on what sort of standard the buyer puts it to,
0:17:11 > 0:17:15if it's good standard, it should fetch in the region of £140,000.
0:17:15 > 0:17:19So a lot of property for that £80,000 guide price
0:17:19 > 0:17:22and lots of options with this one too.
0:17:22 > 0:17:24Rent it out as individual rooms.
0:17:24 > 0:17:27Rent out the house as a whole or maybe convert to flats.
0:17:27 > 0:17:28A good one to go for.
0:17:28 > 0:17:31Let's see who bought it when it went under the hammer.
0:17:35 > 0:17:37A good renting machine
0:17:37 > 0:17:40or just a project, a modest one, to do up and flog on.
0:17:40 > 0:17:44A guide price 80, 80 straight in.
0:17:44 > 0:17:4580, I've got. At 80, at 80.
0:17:45 > 0:17:4881, 81, 81.
0:17:48 > 0:17:5282, 83 at the back left, 84, you couldn't be further apart, you chaps.
0:17:52 > 0:17:5683, 84 or not? 84.
0:17:56 > 0:17:5985? 85.
0:17:59 > 0:18:0286. 86,500 to help him along.
0:18:02 > 0:18:0687? 87. Shake of the head.
0:18:06 > 0:18:0987 we have, at 87.
0:18:09 > 0:18:12Madam, 87,500, 87,500.
0:18:12 > 0:18:1588, at 88. 88,500.
0:18:15 > 0:18:1888... Sorry?
0:18:18 > 0:18:2190, I've got. At 90, thank you.
0:18:21 > 0:18:2390, at 90, half?
0:18:23 > 0:18:25A little nod. Smile, please.
0:18:25 > 0:18:2890,500, that's better and the same, 90,500,
0:18:28 > 0:18:3591, 91,500, 91,500, 91,500,
0:18:35 > 0:18:3892, at 92, 92,500.
0:18:38 > 0:18:4293, 93,500?
0:18:42 > 0:18:4993,500. 94, at 94,500. 95.
0:18:49 > 0:18:54And...go on, 95,500? 95,500.
0:18:54 > 0:18:5796, 96,500.
0:18:57 > 0:19:0096,500, young lady has it.
0:19:00 > 0:19:04At 96,500, at 96,500 once. You're in.
0:19:04 > 0:19:0796,500 once and twice. At 96,500.
0:19:07 > 0:19:13Here we go, it'll be sold, make no mistake at 96,500.
0:19:13 > 0:19:17It's your home, madam. 96,500. Well done. Hard luck, fellas.
0:19:17 > 0:19:19With their bid of £96,500,
0:19:19 > 0:19:23husband and wife Andrew and Wendy were the successful bidders.
0:19:23 > 0:19:29Wendy is a sailing instructor, while Andrew is a consultant heating engineer.
0:19:29 > 0:19:33They bought this as a buy-to-let investment to add to their portfolio.
0:19:33 > 0:19:38They joined me back at the house with the youngest of their two daughters, Alicia.
0:19:38 > 0:19:40Wendy, Andy, good to meet you.
0:19:40 > 0:19:43- Thank you very much.- Tell me why you wanted to buy the house.
0:19:43 > 0:19:45Well, it's got a lot of potential.
0:19:45 > 0:19:48You just need to look around it and you'll see quite readily,
0:19:48 > 0:19:53it's nice big rooms, upstairs can be split quite easily,
0:19:53 > 0:19:57but it needs a bit of work so hopefully a bit of investment, a bit of return.
0:19:57 > 0:19:59What's the plan with it then?
0:19:59 > 0:20:03Well, initially we were probably just going to do the minimum to get it re-let,
0:20:03 > 0:20:08maybe split the front bedroom into two, get an extra bedroom down here
0:20:08 > 0:20:12and then in the longer term maybe split it into two flats.
0:20:12 > 0:20:18- But at the moment keep it simple and not going down the student let route?- Possibly, yeah.
0:20:18 > 0:20:22Whatever we do, it's to be on a short hold or short tenancy agreement
0:20:22 > 0:20:23so if we get a group of people,
0:20:23 > 0:20:28probably professionals rather than students, or a family in here.
0:20:28 > 0:20:31We'll wait and see who comes along.
0:20:31 > 0:20:33Wendy and Andrew aren't new to this.
0:20:33 > 0:20:36They already have two rented properties,
0:20:36 > 0:20:41one residential and one commercial so they can draw on that experience.
0:20:41 > 0:20:45Talk me through exactly what you'll do to sort this place out then.
0:20:45 > 0:20:50I think to start with we need to sort the damp out.
0:20:50 > 0:20:54- There's a damp issue.- And we've got to generally replaster throughout.
0:20:55 > 0:20:57Put some... Improve the insulation
0:20:57 > 0:21:01because the whole of this extension is only single skin.
0:21:01 > 0:21:04That's quite cold and damp.
0:21:04 > 0:21:08Put a shower or a bathroom next door, knock through.
0:21:08 > 0:21:12And then we've got this antique kitchen here which we'll change.
0:21:12 > 0:21:14I think that's about it, isn't it?
0:21:14 > 0:21:20Yeah, we don't want to do much more than that because you're going to spend too much to get your return.
0:21:20 > 0:21:24So how much are you planning to spend doing what you're going to do?
0:21:24 > 0:21:28We've budgeted about £12,000 for the work.
0:21:28 > 0:21:32- What's the timescale on this then? - Two months.- Right.
0:21:32 > 0:21:36Good luck with it and we look forward to seeing how you get on.
0:21:36 > 0:21:37- OK. Thanks.- Thank you.
0:21:37 > 0:21:44So, Wendy and Andy setting sail on their latest buy-to-let project.
0:21:44 > 0:21:47Will they manage to keep it on an even keel?
0:21:47 > 0:21:51Well, as long as they don't go over board on the budget, I think they will.
0:21:51 > 0:21:55Find out how they get on later in the show.
0:21:55 > 0:21:59Coming up, we revisit a London property we first saw in 2008.
0:21:59 > 0:22:02Back then it didn't seem to have much going for it.
0:22:02 > 0:22:05So far that's the best thing about this house.
0:22:06 > 0:22:12We return to Plymouth to check on the progress of Wendy and Andrew's purchase.
0:22:12 > 0:22:14We're really pleased with how it's gone.
0:22:14 > 0:22:17We're really pleased with the result that we've got.
0:22:17 > 0:22:24But first, has Richard's Chatham refurbishment been one step too far?
0:22:24 > 0:22:25It's taken over my entire life.
0:22:30 > 0:22:38Chatham in Kent is famous for its Naval dockyard where Nelson's ship The Victory was built in 1760.
0:22:38 > 0:22:40It's yours at £79,000.
0:22:40 > 0:22:45So for £79,000, Richard bought the two-bed topsy-turvy house with
0:22:45 > 0:22:48its bathroom on the ground floor and the kitchen in the basement.
0:22:50 > 0:22:54Along with his son, Mark, he was hoping this would continue to
0:22:54 > 0:22:59build up his experience in a career that was relatively new to him.
0:22:59 > 0:23:02I was an IT consultant before I went into this game,
0:23:02 > 0:23:05but this is far more rewarding.
0:23:05 > 0:23:09So has this house been a rewarding exercise?
0:23:09 > 0:23:13Six months later, we're back with Richard to find out.
0:23:14 > 0:23:20Well, the exterior's certainly all the better for new windows and doors.
0:23:20 > 0:23:25Inside, that old dingy lounge has now become a more welcoming entrance to the property.
0:23:25 > 0:23:31Well, in the lounge there used to be an ugly old gas fire, '60s type
0:23:31 > 0:23:37gas fire and a friend of mine had an opportunity for me to buy this.
0:23:37 > 0:23:41I had a bit of a problem putting it in because it's quite tall and the
0:23:41 > 0:23:48fireplace that was there was a lot smaller and I had dig it out and put a lintel in there to
0:23:48 > 0:23:54support it all so as I could get in there, but I'm very, very happy with the end result.
0:23:54 > 0:23:57Along with new coving, central heating,
0:23:57 > 0:24:02laminate floors and plaster work, this is no longer a gloomy house.
0:24:05 > 0:24:08Though Richard has kept the bathroom on this floor,
0:24:08 > 0:24:11he's completely transformed it with a new suite and shower unit.
0:24:16 > 0:24:20Downstairs, in the basement, the dining room and kitchen have been
0:24:20 > 0:24:24completely refurbished and some structural changes made.
0:24:24 > 0:24:28Well, the kitchen/dining room was...
0:24:28 > 0:24:33a very mousy little place and the kitchen was dreadful.
0:24:33 > 0:24:38First of all I decided that, because it was small, I wanted to open it out
0:24:38 > 0:24:43and make it into a kitchen/diner because I've done that successfully in other properties,
0:24:43 > 0:24:46but one of the problems we had when we knocked
0:24:46 > 0:24:49the wall down was that the level of wall through here
0:24:49 > 0:24:53didn't match with this and because I wanted to do this with the kitchen surface
0:24:53 > 0:24:57as it all had to be flat so it proposed quite a problem
0:24:57 > 0:25:00for the plasterer to get it all level and he...
0:25:00 > 0:25:04technically, it was quite a difficult job getting that all done and of course,
0:25:04 > 0:25:08we had to get rid of all the potential damp that was coming up from the floor.
0:25:08 > 0:25:13So it all had to be tanked and it was all made... A wonderful job. A wonderful job.
0:25:13 > 0:25:16All that damp and the rotting floor issues have been sorted.
0:25:16 > 0:25:20To me this refurbishment was all about lifting the gloom that was
0:25:20 > 0:25:24previously here and that's certainly been achieved.
0:25:24 > 0:25:27The whole place is much lighter and brighter now.
0:25:27 > 0:25:32# Lifted from the shadows
0:25:32 > 0:25:34# Lifted... #
0:25:34 > 0:25:40With the two bedrooms on the first floor ready to go, the inside of the house is completely finished.
0:25:40 > 0:25:44The outside is looking pretty good too, with the garden transformed
0:25:44 > 0:25:49from a wild untamed wilderness to a neat, manageable family garden.
0:25:49 > 0:25:53Overall you can see there has been a tremendous amount of work done here.
0:25:58 > 0:26:01How does Richard feel about the project now?
0:26:01 > 0:26:04I'm feeling a bit tired at the moment!
0:26:04 > 0:26:06A few long days, very long days.
0:26:06 > 0:26:12I haven't been able to do my normal socialising because this has just taken over my entire life.
0:26:13 > 0:26:17Clearly this has been a bit of a slog at times for Richard.
0:26:17 > 0:26:21There as been a lot of back breaking work, but it wasn't his burden alone.
0:26:21 > 0:26:24His son, Mark, also helped out.
0:26:24 > 0:26:26He's been absolutely a diamond.
0:26:26 > 0:26:28He's been marvellous.
0:26:28 > 0:26:34He's learning to be a plasterer, and the guy I had was obviously his employer.
0:26:34 > 0:26:39Pretty much every single wall in the house needed levelling off
0:26:39 > 0:26:41using hardwall bonding.
0:26:41 > 0:26:45Mark has cut his teeth on this house because of the amount of work
0:26:45 > 0:26:51that was needed and the range of work that has been done as well.
0:26:51 > 0:26:56This has been a good project for me to do a fair bit on my own
0:26:56 > 0:27:00and I've definitely improved a lot since I've been doing this.
0:27:00 > 0:27:05He's just rendered the wall in the garden as well. He's never done that before.
0:27:05 > 0:27:08He did a wonderful job of it. So we're very pleased.
0:27:08 > 0:27:12# Smooth operator
0:27:12 > 0:27:14# Smooth operator... #
0:27:14 > 0:27:20But with the whole house needing plastering or rendering to make the old rough walls even and smooth,
0:27:20 > 0:27:24Mark's had plenty of opportunities to practise his plastering skills.
0:27:24 > 0:27:28His input should have helped keep Richard's costs down.
0:27:28 > 0:27:34The original budget was £10,000 with a contingency, but it went a little bit over that.
0:27:34 > 0:27:41So I spent about £13,500.
0:27:41 > 0:27:45Richard bought the property at auction for £79,000
0:27:45 > 0:27:48and spent £13,500 refurbishing it.
0:27:48 > 0:27:53Including costs and fees, he will have invested close to £100,000 here.
0:27:53 > 0:27:58But was that money well spent? What do two local estate agents think?
0:28:01 > 0:28:06When I first visited this property, it really did need a huge amount of work,
0:28:06 > 0:28:10but the person that's bought has achieved a great property now.
0:28:10 > 0:28:13I personally really like this property.
0:28:13 > 0:28:16I like the new bathroom as it has a separate shower as well as a bath
0:28:16 > 0:28:19and I do like the open-plan kitchen/diner.
0:28:19 > 0:28:22So some pretty positive comments.
0:28:22 > 0:28:26Richard intended this to be a rental property so has six months work
0:28:26 > 0:28:29and an investment of nearly £100,000 been worth it?
0:28:29 > 0:28:35I'd be looking to market at around £110,000 to £115,000.
0:28:35 > 0:28:40You could resell this property on for a figure between £95,000 and £115,000.
0:28:40 > 0:28:45I've been told £115,000 is about as much I could probably get for this.
0:28:45 > 0:28:49That's why I'm renting it for 12 months and then we'll see how it goes.
0:28:49 > 0:28:54So rental is key to success for this project as far as Richard is concerned.
0:28:54 > 0:29:00I'd be looking at around £600 per calendar month, to get somebody in fairly quickly.
0:29:00 > 0:29:05If he had a bit more time on his hands, I'd try £625 per calendar month.
0:29:05 > 0:29:11I think you could rent this property out for a figure between £625 and £675 per calendar month.
0:29:11 > 0:29:16Because of the amount of time that I have because I'm going on holiday
0:29:16 > 0:29:19I'll need to get this buttoned up and tenanted out before I go.
0:29:19 > 0:29:25I settle for £600. I've got a tenant coming in for £600.
0:29:25 > 0:29:29That's not a bad deal. He's getting the money rolling in straight away.
0:29:29 > 0:29:35At £600 a month rental or £7,200 a year, that's a yield of over 7%.
0:29:35 > 0:29:37So not bad.
0:29:37 > 0:29:39So is he planning more of the same?
0:29:39 > 0:29:43I don't know yet. My wife's retiring next year.
0:29:43 > 0:29:50We may move away, take up full retirement, but I can't see it somehow.
0:29:50 > 0:29:54I think we'll be doing something. I don't know what.
0:29:55 > 0:30:00Even if this house does provide a decent pension, I don't think Richard is the retiring kind.
0:30:00 > 0:30:06I'm not sure he's totally ready to walk away from property development quite yet.
0:30:13 > 0:30:17We're back now to a property we first saw in May 2008.
0:30:17 > 0:30:19It was a lovely sunny day in West London,
0:30:19 > 0:30:23full of the possibilities of a gorgeous summer ahead,
0:30:23 > 0:30:26but the house I was there to see had other ideas!
0:30:26 > 0:30:29We're right in the heart of Hammersmith.
0:30:29 > 0:30:31Just behind me you've got the High Street.
0:30:31 > 0:30:34I'm here to see a three storey end of terrace.
0:30:34 > 0:30:38Even I looked at this in the auction catalogue and thought,
0:30:38 > 0:30:40"Wow, I'd really like to view that."
0:30:40 > 0:30:44All the windows are boarded up behind me. That's because squatters have been here.
0:30:44 > 0:30:48They've been a problem in the past. Not a great first impression.
0:30:48 > 0:30:51I've got to say, it looked better in the catalogue.
0:30:51 > 0:30:54All in all, it looks run-down and tatty,
0:30:54 > 0:31:00but you do get all that for £475,000 guide price.
0:31:00 > 0:31:03It's not just how the house looks that's a bit of a problem,
0:31:03 > 0:31:07directly outside are two huge trees blocking the light
0:31:07 > 0:31:10and presenting possible subsidence issues.
0:31:10 > 0:31:14And then there's the road. As it's on a raised pavement,
0:31:14 > 0:31:18that means there's no off or on street parking here
0:31:18 > 0:31:21so when it comes to kerb appeal, well, there isn't any.
0:31:22 > 0:31:26Well, after saying all that about it being run-down on the outside,
0:31:26 > 0:31:28it's so disappointing inside.
0:31:28 > 0:31:30Just wood chip as far as the eye can see.
0:31:30 > 0:31:34No beautiful features in this hallway at all.
0:31:34 > 0:31:39It's a little bit dark in there so let's put this torch on because there's shutters in here.
0:31:39 > 0:31:44Now this is the reception area. It was once a big through room,
0:31:44 > 0:31:47you can see it's been blocked up just here.
0:31:47 > 0:31:52You can see there's been no gas central heating, it's just storage heaters here,
0:31:52 > 0:31:58but ah, wow, this is a beautiful window with the original shutters still intact.
0:31:58 > 0:32:01That will look stunning when it's been restored.
0:32:01 > 0:32:05Do you know what, so far, that's the best thing about this house!
0:32:05 > 0:32:09Also on this floor is an awkward corridor space separating
0:32:09 > 0:32:13the living room from this extremely shabby bathroom.
0:32:13 > 0:32:16There's no chance of a relaxing soak here.
0:32:16 > 0:32:20Already there's a definite feel of neglect about this house.
0:32:22 > 0:32:26Well, this is the lower ground floor and it's even more dilapidated down here.
0:32:26 > 0:32:31The kitchen, if you can call it that, is back there and this is the reception area.
0:32:31 > 0:32:35Now, this is what I'm really worried about.
0:32:35 > 0:32:39Can you hear that running water?
0:32:39 > 0:32:42Well, it's pouring out right next to the electrics.
0:32:42 > 0:32:45That has to be the first thing to get sorted out.
0:32:47 > 0:32:51The ceiling in the kitchen has collapsed and there's an overgrown
0:32:51 > 0:32:55garden you can't even get into because of security shutters.
0:32:55 > 0:32:58So you can't help having a sinking feeling about this place.
0:32:58 > 0:33:02# I told you I was trouble
0:33:02 > 0:33:05# You know that I'm no good. #
0:33:08 > 0:33:12But there must be some positives here.
0:33:12 > 0:33:18It has the potential to be a family home, but then lack of parking would be a big drawback.
0:33:18 > 0:33:20So convert it into flats.
0:33:20 > 0:33:24Square footage counts towards getting a good return on an investment
0:33:24 > 0:33:27and this isn't a huge property.
0:33:27 > 0:33:30Ah, but don't give up hope.
0:33:30 > 0:33:37If you look next door you can see they've already done a large two storey extension to the rear.
0:33:37 > 0:33:40The one thing this house, I think, needs is space.
0:33:40 > 0:33:46But there's never a guarantee that you could do the same because regulations have changed.
0:33:46 > 0:33:48That extension was built a long time ago
0:33:48 > 0:33:52and planning round here has really tightened up over the years.
0:33:52 > 0:33:59But up on the top floor of this three storey house, there are two bedrooms and even more potential.
0:33:59 > 0:34:02Another possibility is going up into the roof.
0:34:02 > 0:34:08The house across the road has got a loft extension, but the pitch on this house, well, it's not very high,
0:34:08 > 0:34:11and I think you might struggle getting adequate head room up there.
0:34:11 > 0:34:15This is one of the upstairs bedrooms, it's a reasonable sized double,
0:34:15 > 0:34:19but one big disadvantage with this house is the train track.
0:34:19 > 0:34:24It's just there. People say you get used to it, but do you?
0:34:27 > 0:34:30A busy and noisy train line could derail any interest shown by
0:34:30 > 0:34:34potential buyers before they even step through the door.
0:34:34 > 0:34:38It's going to take more than TLC to make this an attractive proposition.
0:34:38 > 0:34:40It'll take some tough love.
0:34:41 > 0:34:45A rather dilapidated Hammersmith house next to a train line,
0:34:45 > 0:34:49but this property definitely has the magic word - potential.
0:34:49 > 0:34:52You could knock walls out, open it up, extend it,
0:34:52 > 0:34:55subject to planning permission, you could convert it into flats
0:34:55 > 0:35:01if you can add space by extending, but whatever you do this is a renovation project
0:35:01 > 0:35:04on a large, mammoth scale and a problematic one.
0:35:04 > 0:35:07Getting in the builders, lorries, skips, deliveries
0:35:07 > 0:35:10all to this property, it's going to be a nightmare.
0:35:10 > 0:35:13Who was brave enough to take it on?
0:35:13 > 0:35:15Let's find out in the auction room.
0:35:19 > 0:35:21Lot 33. Where would you like to start?
0:35:21 > 0:35:26475, thank you. 480, 485,
0:35:27 > 0:35:30490, 495, 500.
0:35:32 > 0:35:37500, 500. 501, 502,
0:35:37 > 0:35:43I love your bidding! 510, 515, 520.
0:35:45 > 0:35:48Don't you like what I said? I'll get withdrawal symptoms!
0:35:48 > 0:35:51523, 525?
0:35:51 > 0:35:57525. 530, 535, 530, down here.
0:35:57 > 0:35:59531, looking for another £1,000...
0:35:59 > 0:36:02531, 530...? Five?
0:36:02 > 0:36:08536, 540, 541.
0:36:08 > 0:36:15Does anyone want to see if he goes up one or five? 541, 545,
0:36:15 > 0:36:20545, 546? 545 down here.
0:36:20 > 0:36:22546, new spot.
0:36:22 > 0:36:24540...? 550.
0:36:24 > 0:36:31550, 555, 560, 565.
0:36:31 > 0:36:33570.
0:36:33 > 0:36:36575, 580?
0:36:36 > 0:36:41576, 576, 580?
0:36:41 > 0:36:44580. Have a think.
0:36:44 > 0:36:46580, one at the back?
0:36:46 > 0:36:49If not, 580, first time, second time.
0:36:49 > 0:36:51Third and last time. Are we all done?
0:36:51 > 0:36:56Sold 580. Well bid, well done.
0:36:56 > 0:37:02That closely fought bidding war was finally won by Deano.
0:37:02 > 0:37:04This is his first ever auction purchase
0:37:04 > 0:37:08and, along with a builder friend, it will be his second development.
0:37:08 > 0:37:12I met him at the house in Hammersmith to find out the plans.
0:37:12 > 0:37:16You were so excitable at the auction. I've never seen anything like it!
0:37:16 > 0:37:19- Just throwing random numbers at the auctioneer.- Yes,
0:37:19 > 0:37:24I decided that this was the property I was interested in so I really wanted to go for it
0:37:24 > 0:37:27and throw the other bidders out and luckily I got it.
0:37:27 > 0:37:32- What are your plans for this property, Deano?- I've got two or three potential plans.
0:37:32 > 0:37:37Ideally, I'd like to convert it into three separate residences in terms of flats.
0:37:37 > 0:37:40However, if that planning application I'm proposing to
0:37:40 > 0:37:44put forward doesn't go ahead, then I'll convert it into one property.
0:37:44 > 0:37:49It would make a fantastic abode and one family house potentially
0:37:49 > 0:37:52irrespective of the trains coming by every now and again.
0:37:52 > 0:37:58The last option that I could do, I guess, is really to get the planning permission or sell it on
0:37:58 > 0:38:02- without doing the work because there's a lot of work that's involved.- Oh yes.
0:38:02 > 0:38:04But I'm hoping not to go there.
0:38:04 > 0:38:10As he lives locally, Deano did all his homework and had a good look around.
0:38:10 > 0:38:16He saw that, despite the decay, there was potential here, but surprisingly, he missed one glaring problem.
0:38:16 > 0:38:20No, I didn't really notice the trains. I was looking more
0:38:20 > 0:38:22at the property and, well, having spoken to one or two
0:38:22 > 0:38:25of the neighbours, they said you get used to that.
0:38:25 > 0:38:29- It's London living, it's what you're used to, I suppose.- Exactly.
0:38:29 > 0:38:35To maximise the space, Deano plans to extend both out to the side and at the back and push up into the loft.
0:38:35 > 0:38:40Not only will that add to the square footage, but would definitely broaden the property's appeal.
0:38:40 > 0:38:43Let's face it, it needs all the help it can get!
0:38:46 > 0:38:50I have to say Lucy, I'm a relative novice at this.
0:38:50 > 0:38:53My background, very briefly, I'm a qualified accountant.
0:38:53 > 0:38:57I took a change in career eight years ago and set up a head-hunting business
0:38:57 > 0:39:02and I really only got into the property arena, so to speak, in the last eight to ten months.
0:39:02 > 0:39:06I've entered into one other project with my builder friend and this
0:39:06 > 0:39:10is the first really big chunky one I'm getting my teeth into myself.
0:39:10 > 0:39:13You've spent £580,000 so far.
0:39:13 > 0:39:16What's your budget to do the work or to do any kind of work here?
0:39:16 > 0:39:20If I get the planning permission approved in terms of three units,
0:39:20 > 0:39:25then we're probably looking, with extensions and elevation
0:39:25 > 0:39:30at the top of the property, ballpark £150,000.
0:39:30 > 0:39:34If I'm going to keep it as one house, I'll still extend ground
0:39:34 > 0:39:38floor level or lower ground level, probably still put the elevation in
0:39:38 > 0:39:43at the top of the property, so we're looking probably £80,000 is the budget I've got for that.
0:39:44 > 0:39:50When we first returned nine months later, the trees had gone, but the renovation was still ongoing.
0:39:52 > 0:39:57There was a lot of cosmetic work to be done and, despite the progress,
0:39:57 > 0:40:00there had been one big unexpected problem.
0:40:00 > 0:40:03We always knew there was a bowed side wall to the property.
0:40:03 > 0:40:06We thought we could fix that into the joist,
0:40:06 > 0:40:09but when my structural engineer came,
0:40:09 > 0:40:11he said, "No, you need to rebuild this."
0:40:11 > 0:40:14So that was a fairly major task in itself.
0:40:14 > 0:40:17A tough challenge for any developer,
0:40:17 > 0:40:20but for novice Deano, this was going to be a mammoth undertaking,
0:40:20 > 0:40:26but you can see the impressive finished product and how he got on later in the show.
0:40:32 > 0:40:36It's always easy to put things off till tomorrow, but in the property
0:40:36 > 0:40:40developing world, time is money and those delays can be expensive.
0:40:40 > 0:40:44Have our buyers been busy or have they let the grass grow under their feet?
0:40:44 > 0:40:49Knowing your market is crucial in any property developing project
0:40:49 > 0:40:53and when this three bed mid-terrace in Plymouth came up for auction,
0:40:53 > 0:40:59local Devon couple Wendy and Andrew knew exactly what they wanted to do with it.
0:40:59 > 0:41:02What's the plan with it then?
0:41:02 > 0:41:06Well, initially we're probably just going to do the minimum to get it re-let.
0:41:06 > 0:41:08Maybe split the front bedroom into two.
0:41:08 > 0:41:10Get an extra bedroom down here,
0:41:10 > 0:41:14and then in the longer term maybe even split it into two flats.
0:41:16 > 0:41:20Yes, it's all about rental and maximising the bedroom space.
0:41:20 > 0:41:24So, having paid £96,500 at the auction, sailing instructor Wendy
0:41:24 > 0:41:31and engineer design consultant Andrew set about the task of getting the most out of their purchase.
0:41:31 > 0:41:35Nearly six months later, we're back.
0:41:42 > 0:41:46From the outside, there are signs that they've started to turn this house around
0:41:46 > 0:41:51with a new paint job definitely making it look less shabby.
0:41:55 > 0:41:58Whilst inside...
0:41:58 > 0:42:00well, the front reception room,
0:42:00 > 0:42:03it's rather a work in progress.
0:42:03 > 0:42:06And it seems like they've been on a voyage of discovery.
0:42:06 > 0:42:10Well, this fireplace has actually been quite a journey.
0:42:10 > 0:42:18We started off with the original gas fire that was in here, ripped that out and then we found another
0:42:18 > 0:42:23tiled fireplace which everyone hated so we ripped that one out and then we discovered this one,
0:42:23 > 0:42:27So instead of putting one of the old Victorian fireplaces back,
0:42:27 > 0:42:30we decided to keep this,
0:42:30 > 0:42:34and here you have the original slate which is actually from the kitchen.
0:42:37 > 0:42:42The slate tiles were discovered when they completely refurbished the kitchen.
0:42:43 > 0:42:48This is now, not only more up-to-date, it has the bonus of a shower room off it,
0:42:48 > 0:42:53after they knocked through to the old workshop area previously behind the kitchen.
0:43:04 > 0:43:08With the rear reception room prepared for final decoration,
0:43:08 > 0:43:10downstairs is well on its way.
0:43:10 > 0:43:14So, what about upstairs?
0:43:14 > 0:43:18OK, I'm currently standing in the new bedroom which used to be the old bathroom.
0:43:18 > 0:43:26The bathroom wall used to be about here where I am now and we've taken that wall down.
0:43:26 > 0:43:33Previously you had to go through the bedroom to get into that bathroom so we've moved the bedroom to the back,
0:43:33 > 0:43:36put the bathroom off to the side and created a corridor in between
0:43:36 > 0:43:42and what used to be the old doorway, we've now created an arch
0:43:42 > 0:43:45which, you know, finishes off the detail as best we could.
0:43:46 > 0:43:48This is clearly a better layout for rental.
0:43:48 > 0:43:53You really don't want the main bathroom only to be accessible through a bedroom,
0:43:53 > 0:43:57particularly when you're looking at letting the rooms out individually.
0:43:57 > 0:44:00But what you do want is to maximise the number of lettable rooms.
0:44:00 > 0:44:06They've done that by splitting the main bedroom in two, making this now a four-bed house.
0:44:09 > 0:44:12But remember those odd stairs that went nowhere?
0:44:12 > 0:44:15Have they found a clever solution for them yet?
0:44:17 > 0:44:23The stairway to heaven, that's still a stairway to heaven, I'm afraid, at the moment.
0:44:23 > 0:44:26What we did was, there was a cupboard at the top
0:44:26 > 0:44:32and we did investigate actually putting the roof garden back, but building control recommended
0:44:32 > 0:44:37that we finish the building work that we're doing, stage one, he calls it.
0:44:37 > 0:44:41Get that signed off and then look at doing the roof garden.
0:44:41 > 0:44:47That's a job for a later date, but just finishing off what they started here is going to keep them busy.
0:44:49 > 0:44:53So who's been responsible for all the work so far?
0:44:56 > 0:44:58- It's a mix, isn't it? - Yeah, it's been a bit of a mix.
0:44:58 > 0:45:03The original intention was for me to use this as a fill in between my normal work
0:45:03 > 0:45:08because we thought it might be going a bit quiet. As it happens, it's not been as quiet as we thought
0:45:08 > 0:45:12so I haven't been able to spend as much time as I'd like to.
0:45:12 > 0:45:16I'd quite happily do a lot of the services, but you still have to get
0:45:16 > 0:45:20your electrician in to do their bits, the gas man in to do his bit
0:45:20 > 0:45:25and I won't do any skimming or plastering
0:45:25 > 0:45:29because if that goes wrong, it can look really bad.
0:45:31 > 0:45:33So it really was a mixed bag.
0:45:33 > 0:45:37Andrew being busy with his full-time job is good for their income,
0:45:37 > 0:45:42but having to pull in more tradesmen here will surely have blown their £12,000 budget.
0:45:42 > 0:45:46I'd say we've probably spent, by the time we've finished
0:45:46 > 0:45:51I think we'll have probably spent about £20,000 on it, perhaps
0:45:51 > 0:45:57a bit more if you take into account our salaries as well, we're probably looking at £25,000.
0:45:57 > 0:46:02The aim was to rent this property out, but with a £25,000 budget
0:46:02 > 0:46:06and a £96,500 purchase price,
0:46:06 > 0:46:12this represents an investment of around £121,500 for Wendy and Andrew.
0:46:12 > 0:46:14So, is it on course to pay its way?
0:46:14 > 0:46:17What do two local estates think?
0:46:17 > 0:46:20What's been done so far to the property is very good.
0:46:20 > 0:46:22Obviously it's not quite finished yet.
0:46:22 > 0:46:26A few detailings and snaggings that would need to be completed but it's
0:46:26 > 0:46:30certainly perfect for the current market at the moment when completed.
0:46:30 > 0:46:32From what was here previously,
0:46:32 > 0:46:36they've really made it a nice, natural flowing family set-up.
0:46:36 > 0:46:39The fact the property has many features including
0:46:39 > 0:46:41the original fireplace in the property is very good.
0:46:41 > 0:46:45We have many buyers that are looking for this style of property because of the size.
0:46:45 > 0:46:50What's brilliant as a bonus is that it still retains some of its original features.
0:46:51 > 0:46:57There's clearly still work to be done here, but with around £121,500 invested,
0:46:57 > 0:47:01can the couple be confident that it's going to be worth the effort?
0:47:03 > 0:47:08When the property is completed I'd value the property for offers in the region of £150,000.
0:47:08 > 0:47:12When the house is finished and all the Is are dotted and the Ts crossed,
0:47:12 > 0:47:18the value would be £140,000 and maybe just a little bit more if they're lucky.
0:47:18 > 0:47:21That's the bottom end of what we've been led to believe,
0:47:21 > 0:47:23but it's in the same sort of ballpark.
0:47:23 > 0:47:26So, yeah, there's still profit in there.
0:47:26 > 0:47:29Mmm, there's still some profit in there, yeah.
0:47:29 > 0:47:36A profit of between £18,000 and £28,000 isn't too bad, but rental really is the name of the game here.
0:47:38 > 0:47:43I'd value the property in the rental market for £650 per calendar month.
0:47:43 > 0:47:50The rental value of the house per calendar month is going to be in the region of £575.
0:47:50 > 0:47:53That's a bit on the low side of what we've been led to believe.
0:47:53 > 0:47:56We've actually had offers from prospective tenants
0:47:56 > 0:48:01over £800, so yeah, we'd hope to be getting more than that.
0:48:01 > 0:48:08If they got anywhere near £800 a month, that would be a healthy yield of over 7%.
0:48:08 > 0:48:11From an investment point of view, this property has come up trumps.
0:48:11 > 0:48:15We're really pleased with how it's gone. Really pleased with the result that we've got.
0:48:15 > 0:48:18I think another property would be a good idea.
0:48:18 > 0:48:22Yeah, we've enjoyed this one. There have been ups and downs,
0:48:22 > 0:48:24but overall, it's been great.
0:48:24 > 0:48:29Well, there may be a few ups and downs still to go, but judging by what's been
0:48:29 > 0:48:32done so far, it looks like this is going in the right direction.
0:48:42 > 0:48:45It's back to Hammersmith in West London now,
0:48:45 > 0:48:47where earlier we met Deano
0:48:47 > 0:48:51who bought this decaying town house for £580,000.
0:48:51 > 0:48:55His plan was to renovate it into either three flats or a family home.
0:48:55 > 0:49:00For any developer this would be a tough project.
0:49:03 > 0:49:07But first timer Deano had wisely given himself a healthy 12 months
0:49:07 > 0:49:12to complete the job here, so when we returned the first time,
0:49:12 > 0:49:14nine months later in February 2009,
0:49:14 > 0:49:18it was no surprise that the work wasn't completed.
0:49:18 > 0:49:23But Deano had decided to make it into three one-bedroom flats.
0:49:26 > 0:49:29Well, there were three extensions to this development.
0:49:29 > 0:49:34One was adding a top level onto the property,
0:49:34 > 0:49:38one at the back of the property over the lower two levels,
0:49:38 > 0:49:42and then at the side of the property to house the staircase up to the top flat,
0:49:42 > 0:49:48but one of the issues the builders had was generally the accessibility
0:49:48 > 0:49:52because getting the materials in and out proved to be quite difficult.
0:49:53 > 0:49:57And that wasn't all. The side wall was bowing and had to be rebuilt.
0:49:57 > 0:50:01All a big headache, and on the inside there was still a lot to be done.
0:50:01 > 0:50:05But with the tiling already tiled and the plumbing plumbed,
0:50:05 > 0:50:08it was all starting to take shape.
0:50:09 > 0:50:13So did the final product turn out exactly as planned?
0:50:13 > 0:50:16We returned 16 months later to find out.
0:50:33 > 0:50:36Well, I reckon Deano must be very proud of his efforts.
0:50:36 > 0:50:42The rear extension has given the ground floor flat an amazing kitchen/lounge area.
0:50:45 > 0:50:50That backs out on to a perfect little garden which is ideal for chilling out.
0:50:52 > 0:50:56That lower ground floor room has now become a comfortable bedroom.
0:50:56 > 0:50:58Although no extension was added to the top floor flat,
0:50:58 > 0:51:03taking out the party wall has done wonders for the light and space here.
0:51:10 > 0:51:16I think the last time you visited, this room was in the process of being completed.
0:51:16 > 0:51:19I think the kitchen units were in place and the coves needed
0:51:19 > 0:51:23another lick of paint which was all carried out and you can
0:51:23 > 0:51:30see the finished product with the sofas and the space in here, it's been completed really well.
0:51:33 > 0:51:37The top floor is split level with a new light staircase pushing up
0:51:37 > 0:51:41into the loft, where there's a second bathroom and large bedroom.
0:51:44 > 0:51:47This is the bedroom in the top floor flat.
0:51:47 > 0:51:50It's actually a new level that was created as part of the plans
0:51:50 > 0:51:53when they were submitted to the local council.
0:51:53 > 0:51:58I considered making this area into two bedrooms, but it wasn't really big enough to do that
0:51:58 > 0:52:02so I stuck with Plan A and I'm very pleased with the way that it's turned out.
0:52:02 > 0:52:06It's a really nice bedroom for the top floor flat.
0:52:10 > 0:52:15Downstairs, the raised one-bed ground floor flat also has the benefit of the extension,
0:52:15 > 0:52:21allowing it to have the same kitchen and lounge area as the lower ground floor flat.
0:52:23 > 0:52:27With the bedroom at the front and the bathroom complete, everything is now shipshape.
0:52:30 > 0:52:32Even the tenant's cat's happy with the final result.
0:52:32 > 0:52:37But Deano did have his doubts about getting there.
0:52:37 > 0:52:42There were one or two moments I thought why have I taken on this massive project
0:52:42 > 0:52:47when I was quite a novice at the time, but because of the good relationship with the builder
0:52:47 > 0:52:52and the fact the plans were in place, it was a great learning curve.
0:52:53 > 0:52:58He'd only been doing property development for eight months before he bought this house,
0:52:58 > 0:53:01which was only his second project.
0:53:01 > 0:53:06Since I completed this project, I've gone on to carry out a few more.
0:53:06 > 0:53:11I've developed a few other single units since then and kept the majority of those.
0:53:11 > 0:53:15There are one or two that I've developed and sold on,
0:53:15 > 0:53:19but this really gave me the footing for understanding what was entailed,
0:53:19 > 0:53:22including planning, builders, complications.
0:53:22 > 0:53:26# Ain't no stopping us now... #
0:53:28 > 0:53:32Well, Deano got the renovation done in his projected time scale
0:53:32 > 0:53:37of one year and he didn't waste time getting the place to earn its keep.
0:53:37 > 0:53:41I've got a good lettings agency that managed to let out all the flats
0:53:41 > 0:53:43almost as soon as they were completed,
0:53:43 > 0:53:46so it's a wonderful situation to be in.
0:53:46 > 0:53:48Great flats. Tenants that look after the property.
0:53:48 > 0:53:51So I'm very, very happy with it.
0:53:51 > 0:53:56Those flats are making a rental income of over £3,300 per calendar month,
0:53:56 > 0:53:59but out of that will come the fees for the letting agents.
0:53:59 > 0:54:02What was his final outlay?
0:54:03 > 0:54:09I bought the property for £580,000 at auction and including stamp duty and all the expenses
0:54:09 > 0:54:15to complete the property, the overall total that the three flats cost me was £780,000.
0:54:20 > 0:54:23But is he getting the best out of his investment?
0:54:23 > 0:54:28We asked two local estates to give their opinions on Deano's hard work.
0:54:30 > 0:54:33I think he's done a really great job.
0:54:33 > 0:54:35They've been finished to a good standard.
0:54:35 > 0:54:39The open-plan works really well for the type of people that
0:54:39 > 0:54:42would be renting or buying them. He's done a really good job.
0:54:42 > 0:54:44The works that have been done, they all look really good.
0:54:44 > 0:54:48It's well presented but the thing that he can't take away from it
0:54:48 > 0:54:53is where it is and being next to the Tube line so that's always going to be an issue,
0:54:53 > 0:54:56but the general kind of finish of it is all very nice.
0:54:56 > 0:54:59So how do the numbers stack up?
0:54:59 > 0:55:06Remember, Deano's rental income is just over £3,300 per calendar month so what COULD the flats fetch?
0:55:08 > 0:55:12The lower ground floor flat you'd be looking at £1,200 per calendar month.
0:55:12 > 0:55:16For the raised ground floor flat, you'd be looking at £1,000 per month
0:55:16 > 0:55:20and for the top floor flat you'd be looking about £1,300 per calendar month.
0:55:22 > 0:55:29That's a possible rental income of £3,500 per calendar month, £200 more than Deano is getting.
0:55:29 > 0:55:33I'm happy with those. I probably could get a touch more now
0:55:33 > 0:55:36if I remarketed them, but I've got very good tenants.
0:55:36 > 0:55:39I'm very happy with them. Yes, I'm pleased with those.
0:55:39 > 0:55:46Deano spent a total of £780,000 here, so what could it fetch if he decides to sell?
0:55:46 > 0:55:51The lower ground floor garden flat would sell for about £300,000.
0:55:51 > 0:55:56The raised ground floor would sell for approximately £275,000
0:55:56 > 0:56:01and this top floor flat would sell for about £325,000.
0:56:02 > 0:56:06That possible total resale value of £900,000
0:56:06 > 0:56:11could give Deano a pre-tax profit of about £120,000.
0:56:11 > 0:56:13I think that's pretty good overall.
0:56:13 > 0:56:16The way the market has been over the last 12 months or so,
0:56:16 > 0:56:20there's been a little bit of an improvement so yes, very pleased.
0:56:20 > 0:56:24But I reckon that what Deano should be most pleased about is that
0:56:24 > 0:56:29invaluable experience he's now gained in developing properties.
0:56:29 > 0:56:33It's been a very interesting project, a very rewarding one ultimately.
0:56:33 > 0:56:35I learnt an awful lot on it.
0:56:35 > 0:56:40I'm very pleased with the end result and certainly happy overall.
0:56:48 > 0:56:52Join us next time when we'll have more properties sold under the hammer.
0:56:52 > 0:56:55Yes, who knows what they'll be - flats, houses, bits of land...
0:56:55 > 0:56:57You can find out.
0:56:57 > 0:56:59- See you soon.- Goodbye.- Bye-bye.
0:57:15 > 0:57:19Subtitles by Red Bee Media Ltd