0:00:02 > 0:00:06We all know that the value of homes can go down as well as up.
0:00:06 > 0:00:12- So it pays to buy at the right price.- And one way is to buy your home under the hammer.
0:00:37 > 0:00:43- If you decided to place a bet on property developing, try an auction. - The atmosphere is electric.
0:00:43 > 0:00:49- The action is fast and furious. - Let's take a look at the properties up for auction on today's show.
0:00:50 > 0:00:54'In Devon, there's loads of potential...and loads of problems.'
0:00:54 > 0:00:59But at the same time - wow! It's exciting.
0:01:00 > 0:01:07If it's a fabulous view and large property you're after, I've found the perfect spot.
0:01:07 > 0:01:10It's a bit of a Welsh wonderland.
0:01:11 > 0:01:17'And near Telford in Shropshire, it's a case of buyer beware.'
0:01:17 > 0:01:22If he didn't discover it before the auction, it could be big trouble.
0:01:22 > 0:01:28All these properties have been sold at auction. We'll find out who bought them under the hammer!
0:01:28 > 0:01:31Your lot, sir. Well done.
0:01:32 > 0:01:37Today I'm in the small village of Bickleigh, near Dartmoor in Devon,
0:01:37 > 0:01:44to look at a lot that's described in the auction catalogue as "a rare and interesting opportunity".
0:01:44 > 0:01:49I know people who'd spend the guide price of this lot - £120,000 -
0:01:49 > 0:01:53just on the 2.5 acres of land that it comes with.
0:01:53 > 0:02:00However, in this instance, as well as that you get a farmhouse, a barn and some outbuildings.
0:02:00 > 0:02:02Definitely worth a look.
0:02:04 > 0:02:10'But as you might imagine, for that sort of money you also get a fair number of problems.
0:02:10 > 0:02:16'The main house looks OK, but some of the outbuildings haven't been touched for years.
0:02:16 > 0:02:18'So what's it like inside?'
0:02:24 > 0:02:30A great sense of anticipation when you walk through the front door. Is it going to match the outside?
0:02:30 > 0:02:32Well...not too brilliant.
0:02:32 > 0:02:38Got a loo there. A kitchen that could be much grander than it is.
0:02:38 > 0:02:40It'll need time and money
0:02:40 > 0:02:44Not too bad, though, but as you move in, it gets a bit strange.
0:02:44 > 0:02:50Lots of stud partition walls, like somebody added them in at some stage.
0:02:50 > 0:02:55Yet the foundations, the basis for this property... Old beams.
0:02:55 > 0:03:01It could be so much grander than it is. I'm already thinking this is a "gut it and start again" job.
0:03:03 > 0:03:05It goes on, though.
0:03:06 > 0:03:10And this is where the layout really starts to get a bit odd.
0:03:10 > 0:03:16This room is an add-on to the main body of the house. It could be a lounge or maybe an office
0:03:16 > 0:03:22with the stairs leading to a separate bedroom. But it can only be reached by these stairs,
0:03:22 > 0:03:28making it almost a separate annex. The other two bedrooms, plus bathroom and toilet,
0:03:28 > 0:03:35are accessed by the central staircase in the main body of the house. A rejig of this is needed,
0:03:35 > 0:03:39particularly when you see what is attached to the side of this place.
0:03:40 > 0:03:46Because down at this end of the property it starts to get really, really interesting.
0:03:46 > 0:03:50That part of the house - fairly straightforward restoration.
0:03:50 > 0:03:56This is actually a barn that is attached to it. You start getting into restoring barns
0:03:56 > 0:04:04and it's serious building work. You need planning permission, architects, structural work,
0:04:04 > 0:04:08but at the same time - wow! It's exciting!
0:04:08 > 0:04:12'Oh, yes. This really has tremendous potential.
0:04:12 > 0:04:19'The floors are in place. There's a decent roof and it's connected to the main part of the house.
0:04:19 > 0:04:26'It could be easily integrated to add more living space. The possibilities are endless.
0:04:26 > 0:04:31'As if that wasn't enough, one outbuilding is converted to stables,
0:04:31 > 0:04:36'so at a guide price of 120 grand it all looks very promising.'
0:04:39 > 0:04:46So there is so much scope for this place, but there is one shocking problem I haven't told you about.
0:04:46 > 0:04:49Hear that crackling noise?
0:04:52 > 0:04:54That's not the rain.
0:04:55 > 0:05:02'No, that's the crackling of overhead power cables that cross right over the farmhouse and land.
0:05:02 > 0:05:05'This is not ideal and a big negative.
0:05:05 > 0:05:11'Just how much will these detract from the value of this property?
0:05:11 > 0:05:15'Let's hear from a local property expert.'
0:05:17 > 0:05:21Power lines are notorious. They're getting a bad press,
0:05:21 > 0:05:25so a lot of the marketplace will be put off by this,
0:05:25 > 0:05:31but always the odd person will take it with a pinch of salt and not read the headlines
0:05:31 > 0:05:33and just enjoy the beautiful place.
0:05:33 > 0:05:39The property needs a lot of refurbishment from top to bottom, including new kitchen, bathrooms,
0:05:39 > 0:05:46general decoration, but also the adjoining barns would make excellent additional accommodation.
0:05:46 > 0:05:52It's currently three bedrooms. Converting the existing accommodation could make five or six bedrooms,
0:05:52 > 0:05:57which obviously is a lot more desirable for a property this size
0:05:57 > 0:06:01and could fetch you in the region of 350-375.
0:06:01 > 0:06:07But if those power lines were removed or put underground, what value could we be looking at then?
0:06:07 > 0:06:13Without the power lines, I think you'd be looking at a figure closer to 450 or 475.
0:06:13 > 0:06:15It's a considerable difference.
0:06:15 > 0:06:20'That's nearly £100,000 wiped off the value to start with.
0:06:22 > 0:06:26'But even so, with valuations around the £350,000 mark,
0:06:26 > 0:06:31'this looks like an attractive investment proposition.'
0:06:31 > 0:06:37Well, you see this in the auction catalogue with a guide price of 120,000 quid
0:06:37 > 0:06:39and you've got to be interested.
0:06:39 > 0:06:43You come and take a look and this place is definitely a challenge.
0:06:43 > 0:06:51Not for the faint-hearted, but the potential - it's as big as your imagination wants it to be.
0:06:51 > 0:06:57It's a great one to go for. Of course, the big issue here, though, is something you can't change -
0:06:57 > 0:07:03those pylons. In this case it's more ohms under the hammer than Homes Under The Hammer.
0:07:03 > 0:07:05Let's go to the auction.
0:07:08 > 0:07:1144. That's a pretty little spot.
0:07:12 > 0:07:17100 viewings. What a chance to produce a fantastic home.
0:07:17 > 0:07:22Not going less than 100. So...thank you. 100 we've got.
0:07:22 > 0:07:25110. 120.
0:07:25 > 0:07:28130. 140.
0:07:28 > 0:07:31150. 160.
0:07:31 > 0:07:34170. 175. 175.
0:07:34 > 0:07:37Front row. OK, 175.
0:07:37 > 0:07:40175. 176.
0:07:40 > 0:07:42176.
0:07:43 > 0:07:46176 is at the back. Or halfway up, my left.
0:07:46 > 0:07:49176. Would 500 keep you in the game?
0:07:49 > 0:07:53176 and a half. 177. 177 and a half?
0:07:53 > 0:07:59177 and a half. The 177 and a half is here, in the front row.
0:07:59 > 0:08:05177 and a half once and twice. Third and last, here we go. At 177,500.
0:08:05 > 0:08:08Well done. Make a lovely home of it.
0:08:08 > 0:08:14At considerably over the guide price, for £177,500
0:08:14 > 0:08:21the new owners of the ramshackle Devon farmhouse and land are local couple Robin and Tracy.
0:08:21 > 0:08:26They bought it primarily as a home for Tracy and her daughter Sophie.
0:08:26 > 0:08:30- Tracy, Robin, lovely to meet you both.- Lovely to meet you.
0:08:30 > 0:08:36- Hello.- Hi! Now, listen, you've bought a really interesting property here.
0:08:36 > 0:08:40- Just a little, yes.- Do you have any idea what you've taken on?
0:08:40 > 0:08:42- Yes!- How would you describe that?
0:08:42 > 0:08:47- A large project.- A large project. - But it will be fun.
0:08:47 > 0:08:54- Tell me a bit about you two. - I'm a builder.- Right. - This is ideal for me.- OK.
0:08:54 > 0:08:57I'm a driving instructor in the local area.
0:08:57 > 0:09:04- This is a joint project or what? - Yeah, definitely.- Well, I'm doing all the hard work.
0:09:04 > 0:09:08I'll do the pretty stuff. Maybe a bit of sanding here and there!
0:09:08 > 0:09:13Robin's building experience means he's done barn conversions before
0:09:13 > 0:09:20so he's not fazed by the work that's needed here. Even so, where will he start with this one?
0:09:20 > 0:09:27I'm going to get the new bit, the bit that's been converted, done first so we can move in.
0:09:27 > 0:09:33- And then start on this side. So turn it into what will be a five or six-bedroom house.- Crikey.
0:09:33 > 0:09:37What about outside? We've obviously got barns
0:09:37 > 0:09:41- and the stable, which is in better condition than the house!- It is!
0:09:41 > 0:09:47They spent more money on that. That's going to be stables for Tracy's horses.
0:09:47 > 0:09:52- And we've got the fields. - Then the garages and a workshop.
0:09:52 > 0:09:56- What about the budget, then? - Mm, budget.- Yeah.
0:09:56 > 0:10:03Well, the section that's already been done, we're looking at £15,000-£20,000 to sort it out.
0:10:03 > 0:10:09- And this section we're thinking about £50,000-£60,000 to do this bit up. - Right.
0:10:09 > 0:10:13- Still...sort of 75... - 75, yeah.- Ish.
0:10:13 > 0:10:15For the whole project.
0:10:15 > 0:10:19'Although that may take their total investment to over £250,000,
0:10:19 > 0:10:26'they'll end up not only with stables and potentially a paddock, but also a workshop for Robin.
0:10:26 > 0:10:32'Then the house can be made into a large family home with room for Tracy's daughter Sophie
0:10:32 > 0:10:37'and eventually Robin's two boys to stay over. So it's ideal.'
0:10:37 > 0:10:42Now obviously one big issue with this property is the pylons.
0:10:42 > 0:10:48- Yes.- The electricity cables. You can actually hear them crackling away.- Yeah.
0:10:48 > 0:10:56- There's all sorts of thoughts about health issues, but certainly it reduces the price.- It does.
0:10:56 > 0:11:02- What were your thoughts about that? - Well, em...I think you just get used to something.
0:11:02 > 0:11:07You get used to that. I've got a friend who lives next to a railway.
0:11:07 > 0:11:13At first it kept him awake, but he soon got used to it. I hope we get used to the crackle.
0:11:13 > 0:11:17Eventually. Maybe one day they'll be taken away.
0:11:17 > 0:11:21'They don't seem particularly concerned about the pylons.
0:11:21 > 0:11:28'After all, they knew they were here and they have more pressing issues to deal with.'
0:11:28 > 0:11:33- Are you going to run your business at the same time?- At the same time.
0:11:33 > 0:11:37How's that going to work? You won't want to come home and work.
0:11:37 > 0:11:41- I'll start again, yeah. - Presumably you mean a team?
0:11:41 > 0:11:47- I've got friends I can call on, but most of it I'll do. - Yourself?!- Yeah.
0:11:47 > 0:11:53- What are you, Superman?!- Yeah! - Built with titanium with kryptonite inside!
0:11:53 > 0:11:55That's it.
0:11:55 > 0:11:58Have you seen him do this before?
0:11:58 > 0:12:01I've seen him work on the house we're in now.
0:12:01 > 0:12:09- And you're confident? - Yes, definitely.- Really?- As long as I feed him enough cups of tea.
0:12:09 > 0:12:15- Listen, congratulations.- Thank you. - Good luck. We'll give you a good long time before we come back.
0:12:15 > 0:12:20- I'll need at least six months. - Good luck with it.- Thanks.
0:12:20 > 0:12:26'Well, Robin may not actually be Superman, but it's going to take one mighty big effort to turn this
0:12:26 > 0:12:31'from a dilapidated old farmhouse into an idyllic family home.'
0:12:31 > 0:12:35There's no getting away from it. This is a humungous project.
0:12:35 > 0:12:41And here's Robin talking about taking it on single-handed. I'm sure Tracy will help out.
0:12:41 > 0:12:46Wow! A lot of challenges ahead. But financially, probably worth it.
0:12:46 > 0:12:51They bought it at a good price and it will be worth a lot of money.
0:12:51 > 0:12:56How are they going to get on? Find out later in the show.
0:12:58 > 0:13:05It's off to the valleys for me today to investigate a rather unusual housing estate.
0:13:05 > 0:13:08I'm in Maesteg in Wales.
0:13:08 > 0:13:11It's Llynfi Court, just outside the main town.
0:13:11 > 0:13:17It's one of the more expensive parts of the area and that's because about five years ago
0:13:17 > 0:13:24somebody divided this land into individual plots with planning permission for grand houses.
0:13:24 > 0:13:30They appealed to those keen to self-build their dream home and the results speak for themselves.
0:13:30 > 0:13:33It's a bit of a Welsh wonderland.
0:13:35 > 0:13:42There's a whole mixture of sizes and shapes here, all at varying degrees of completion and all in pursuit
0:13:42 > 0:13:47of that elusive pot of gold at the end of the rainbow.
0:13:47 > 0:13:53But, inevitably, for some the dream ran out of steam and the lot I'm here to see is Plot 22,
0:13:53 > 0:13:58which is not a plot at all - it's a shell of a mansion!
0:13:58 > 0:14:02Crikey! Not the most appealing shell I've ever seen,
0:14:02 > 0:14:07but with a guide of only £70,000, it's certainly worth investigating.
0:14:07 > 0:14:14Dream spots deserve dream houses and this doesn't quite stack up. It's too big for the plot size,
0:14:14 > 0:14:19there's no front garden and not much at the back.
0:14:19 > 0:14:25But at a £70,000 guide price it does have its merits and the views aren't bad, either.
0:14:25 > 0:14:30I certainly didn't expect it to be like a show home in here.
0:14:30 > 0:14:34And it's not - it's plasterboard everywhere! It really is half done.
0:14:34 > 0:14:41I know it's in the first fix stages. You've got all the wiring hanging down, no light switches.
0:14:41 > 0:14:47But it's a big space. I think that's because what should be here are the stairs!
0:14:47 > 0:14:51That's the upstairs part there. You've got no stairs.
0:14:51 > 0:14:56But you've got this grand room here. I suppose this would be a lounge.
0:14:56 > 0:15:01Another big reception room through there. That could be an office.
0:15:01 > 0:15:08Reception room number two. Lots of little rooms. It's perhaps not as open-plan as I'd thought,
0:15:08 > 0:15:13but something that is slightly worrying is signs of damp up there.
0:15:13 > 0:15:19My guess is it's been empty for some time so it's really important somebody gets in here
0:15:19 > 0:15:25and cracks on with that. I'd really like to see what it looks like once done up.
0:15:25 > 0:15:28# Oh, we're halfway there
0:15:28 > 0:15:32# Oh, living on a prayer... #
0:15:32 > 0:15:37A house in this state is a mixed blessing.
0:15:37 > 0:15:42A lot of costs go sky high just getting the roof on and have the pipes been laid,
0:15:42 > 0:15:49was the wiring checked? Sometimes it's easier to rip it all out and start again.
0:15:49 > 0:15:55This would be the kitchen/breakfast room. Not a bad space. You've got a utility area here.
0:15:55 > 0:15:59There's a nice throughway into the dining room.
0:15:59 > 0:16:06Double doors could lead to the garden. You just have to use your imagination, though,
0:16:06 > 0:16:10and picture solid wood floors, shiny tiles and a high-gloss finish.
0:16:10 > 0:16:15These are top-end homes which should have no expense spared.
0:16:21 > 0:16:28Perhaps that's the sticking point - the market is top-end, but you could put in more than you get out.
0:16:28 > 0:16:34To work out the margins here, I invited a local estate agent.
0:16:35 > 0:16:38The development was originally sold
0:16:38 > 0:16:40off plot for self-build builders.
0:16:40 > 0:16:45This property has obviously been built to a first fix stage
0:16:45 > 0:16:52and then sold on. The garden might be a negative point. With such a large house and such a small garden,
0:16:52 > 0:16:55it might not appeal to families.
0:16:55 > 0:16:59That is a concern. A big family house without a big family garden.
0:16:59 > 0:17:05But even if it doesn't tick all the boxes, it still has market appeal. The question is how much.
0:17:05 > 0:17:09There's one currently on the market for £310,000.
0:17:09 > 0:17:14We've recently sold a property for 270.
0:17:14 > 0:17:18You might not be getting top dollar, but it was guided at just £70,000.
0:17:18 > 0:17:22So maybe it was worth shelling out for this new-build shell.
0:17:22 > 0:17:29I think you've got to imagine this rather unattractive box with all its fittings and finery.
0:17:29 > 0:17:35Then it will start to look like a decent investment. I'm still unconvinced it'll fly away,
0:17:35 > 0:17:40but with a guide of £70,000, I'm sure somebody went for it.
0:17:44 > 0:17:48We go on to another one that's attracted a great deal of interest.
0:17:48 > 0:17:52We've got a proxy bid on this.
0:17:52 > 0:17:58I have 90 from my proxy bidder. 90 from the proxy bidder. 95 can I see?
0:17:58 > 0:18:0395. 100 from my proxy bidder. 105, thank you.
0:18:03 > 0:18:07At 105. 110 from my proxy bidder.
0:18:07 > 0:18:09At 110.
0:18:09 > 0:18:1115, can I? 15.
0:18:11 > 0:18:15115 I'm bid. At 115.
0:18:15 > 0:18:17120 there.
0:18:17 > 0:18:20I have 123 from my proxy bid.
0:18:20 > 0:18:24125, either of you now? 125.
0:18:24 > 0:18:2930 now? 30, thank you. At 130, seated.
0:18:29 > 0:18:33You saw the catalogue go up. 130. Make it 2, will you, sir?
0:18:33 > 0:18:35At 132.
0:18:35 > 0:18:38I'll take them two at a time. 4.
0:18:38 > 0:18:40134. 136, if you like.
0:18:40 > 0:18:436 is bid. 136.
0:18:43 > 0:18:48138, please. 8 is bid. At 138. And 40, if you like.
0:18:48 > 0:18:5040, thank you.
0:18:50 > 0:18:52Is that a bid, sir? 2, thank you.
0:18:52 > 0:18:55142. 144, if you like, please.
0:18:55 > 0:18:58Thank you. At 144. You're still out, sir.
0:18:58 > 0:19:016 I'm bid. At 146. You're out.
0:19:01 > 0:19:05Another 2 is it, sir? 148. Thank you.
0:19:05 > 0:19:0950. 150. I thought you'd got it there.
0:19:09 > 0:19:13At 150. Are we going through the same process? Yes or no?
0:19:13 > 0:19:16- At 152.- One. One.
0:19:16 > 0:19:20You've been in all the way. 152 with you, sir.
0:19:20 > 0:19:24151. 2, can I? Yes or no?
0:19:24 > 0:19:30They're going to get it, then. Make no mistake. At £151,000 on my left.
0:19:30 > 0:19:34Have you done? At £151,000.
0:19:34 > 0:19:41It's yours. Thank you very much. The lady was with you! I wasn't sure who was with who!
0:19:41 > 0:19:48At well over double the guide price, for £151,000 the new owners of the new-build in Maesteg
0:19:48 > 0:19:55are husband and wife Linda and Mohammed. They have five children between them. I joined Linda
0:19:55 > 0:19:58and son Omar at the Maesteg mansion.
0:19:58 > 0:20:02- Linda, congratulations! - Thank you very much!
0:20:02 > 0:20:06- You've bought an empty shell!- Yes! - What were you thinking?- Crazy.
0:20:06 > 0:20:10Yeah! Crazy. Adventure. Challenge.
0:20:10 > 0:20:12How well do you know this area?
0:20:12 > 0:20:17- Not at all.- Not at all, really. - What part of Wales are you from?
0:20:17 > 0:20:22- Cardiff.- Cardiff.- So that is a 50-minute journey to here?
0:20:22 > 0:20:28- Yes.- So you don't know this neighbourhood terribly well, so you have taken a gamble.- Yes.
0:20:28 > 0:20:33- Why did you want to buy this? What potential could you see?- A lot.
0:20:33 > 0:20:40There's a lot of work. We'll all pull as a family, get a builder in, do the odd jobs.
0:20:40 > 0:20:43We'll pull together and save a lot of money.
0:20:43 > 0:20:49Their plan is to keep the current layout, fit out the house and sell it on.
0:20:49 > 0:20:55- Are you in the property world? - Yes, we are. We finished building a villa in Portugal.
0:20:55 > 0:21:00So that took three years. Me and my husband learned a lot about that.
0:21:00 > 0:21:06So he's very good at designing, architectural... He's really good at that.
0:21:06 > 0:21:10So he's the main... He's the brain, we're the brawn!
0:21:10 > 0:21:17Linda's husband Mohammed works in the meat trade, so I think he could provide the brawn as well.
0:21:17 > 0:21:23But even if this is a team effort, there's no getting around there being an awful lot to do.
0:21:23 > 0:21:29- How much have you got to spend? - We're looking at 70-80. - £70,000-£80,000.
0:21:29 > 0:21:33As you can see, there's no floors, no nothing.
0:21:33 > 0:21:35And the garden and things will cost.
0:21:35 > 0:21:41- But the shell is up, so we're going to do it as... - See what we can do.- Yep.
0:21:41 > 0:21:49- For 70K, that's quite a tall order. I've got a huge feeling you might go over it.- We probably will.
0:21:49 > 0:21:54- That'll eat into your profit.- Yeah. - Good luck.- Thank you very much.
0:21:54 > 0:22:00- It's going to be really exciting. - You'll have a shock! Thank you very much.- Thank you.
0:22:00 > 0:22:06'I hope it's going to be a nice shock because this property needs a major shake-up.'
0:22:08 > 0:22:14Linda and her family have got this huge blank canvas, but it'll take more than a lick of paint
0:22:14 > 0:22:18and more than their 70 grand to make the palace they imagine.
0:22:18 > 0:22:22Join me later to see if it's fit for a queen.
0:22:23 > 0:22:27Coming up: not a good start at this semi in Shropshire.
0:22:27 > 0:22:32I don't need to go too far to see their first potential problem.
0:22:33 > 0:22:40Back in Maesteg in Mid-Glamorgan, has Linda's project been as straightforward as she hoped?
0:22:40 > 0:22:42It's been quite difficult.
0:22:45 > 0:22:50But first, has Robin and Tracy's renovation run out of energy?
0:22:50 > 0:22:52I'm going to sit down and collapse!
0:22:54 > 0:23:00In the small village of Bickleigh in Devon, a rather unusual lot came up for auction.
0:23:00 > 0:23:05A farmhouse with detached barns and outbuildings, with two acres.
0:23:05 > 0:23:12That's not the unusual bit. It was in a fairly sorry state and came with undesirable extras -
0:23:12 > 0:23:16electricity pylons and overhead cables. That was ironic
0:23:16 > 0:23:20as the property was disconnected.
0:23:20 > 0:23:26However, none of this deterred Robin and Tracy. They bought it for £177,500,
0:23:26 > 0:23:30initially for Tracy and her daughter Sophie.
0:23:30 > 0:23:36- Tell me what you're going to do. - We're going to get the new bit that's been converted
0:23:36 > 0:23:40done first so that we can move in. And then start on this side.
0:23:40 > 0:23:44So turn it into what will be a five or six-bedroom house.
0:23:44 > 0:23:50So nearly six months later, have they sparked the farmhouse back to life?
0:23:53 > 0:23:57The skip suggests work's been going on inside.
0:23:57 > 0:24:01The ground floor is designed around the kitchen first,
0:24:01 > 0:24:04then we did the other rooms to suit.
0:24:04 > 0:24:08They knocked the lounge and old kitchen into one,
0:24:08 > 0:24:12creating a spacious farmhouse-style kitchen.
0:24:20 > 0:24:25The back of the kitchen has been converted into a lounge-cum-diner.
0:24:26 > 0:24:30Off that is the utility room and study.
0:24:34 > 0:24:38And there's a completely revamped conservatory.
0:24:38 > 0:24:46And then Sophie's little snug. We decided she was 13 and would be wanting her own private space.
0:24:46 > 0:24:51So we thought it would be nice for her to have her own lounge.
0:24:54 > 0:24:58So Tracy's daughter Sophie almost has her own separate wing
0:24:58 > 0:25:03with a downstairs lounge and ensuite bedroom.
0:25:12 > 0:25:19When I first saw it, I was like, "Oh, my God!" but because Robin is such a fast worker,
0:25:19 > 0:25:25and he's really good at building and stuff, because he can do basically anything,
0:25:25 > 0:25:33so, yeah, he's really good and it's just good watching it from that, the dump it was, to now!
0:25:33 > 0:25:39Sophie's wing is nearly there, but what about the main body of the house?
0:25:39 > 0:25:44Upstairs layout, we knocked the bathroom and toilet into one.
0:25:51 > 0:25:58And then moved the bedrooms around because we moved the staircase to a different position
0:25:58 > 0:26:02for more room upstairs. So we have two bigger bedrooms than were there.
0:26:03 > 0:26:08One for the boys when they come and stay and one for us, temporarily.
0:26:16 > 0:26:21So Robin's two boys, Freddie and Tom, have a great nest in here,
0:26:21 > 0:26:25but it's the outside space that appeals to them most.
0:26:25 > 0:26:29- It's really brilliant. - Yeah, really brilliant.
0:26:29 > 0:26:32He made us a rope swing.
0:26:33 > 0:26:38And...it was right up there, the wood,
0:26:38 > 0:26:42and he had a very long ladder.
0:26:54 > 0:26:59The two acres of land don't just offer a fabulous space to play in,
0:26:59 > 0:27:04but there's also a paddock area for Tracy's two horses.
0:27:05 > 0:27:12All the field was covered in brambles. It took a long time to get out there and clear it all.
0:27:12 > 0:27:14It's taken quite a lot of doing.
0:27:18 > 0:27:24The two horses don't just have a paddock, of course. They also have somewhere to shelter.
0:27:24 > 0:27:27Outbuildings. One is the stable block
0:27:27 > 0:27:32- for Tracy's horses.- We're going to put a new roof on that.- New roof.
0:27:32 > 0:27:39The other one's going to be a garage with a small little workshop for myself.
0:27:39 > 0:27:44And the other one's going to be, hopefully, a holiday let, eventually,
0:27:44 > 0:27:51- so that we can have an income from it, but that depends on planning permission.- If we're allowed to.
0:27:51 > 0:27:55If not, it'll be another dwelling for relatives coming to stay.
0:27:55 > 0:27:59There's still lots to do, outside and in.
0:27:59 > 0:28:04The other half we haven't started yet, but it'll be two more bedrooms,
0:28:04 > 0:28:09the master bedroom, the lounge and games room.
0:28:09 > 0:28:14That will mean eventually a five-bedroom house
0:28:14 > 0:28:19with plenty of reception rooms and extra living space.
0:28:19 > 0:28:23And for Tracy, it's starting to become a home.
0:28:23 > 0:28:27I moved in Christmas Eve about five months ago.
0:28:27 > 0:28:32It wasn't really ready to move into, but I had everyone coming over for Christmas dinner,
0:28:32 > 0:28:37so you had to make me a makeshift tap because I didn't have a sink at the time.
0:28:37 > 0:28:42- We've got the utility sink now. I washed up in a bucket.- You did. - It was quite funny.
0:28:42 > 0:28:49Robin is still living in his old house which he is keen to sell, so that he can move in here too.
0:28:49 > 0:28:53But how do they feel about those ever crackling power lines now?
0:28:53 > 0:28:56At first, it was a little bit odd,
0:28:56 > 0:29:01but with everything else that's around here, the beautiful fields and trees,
0:29:01 > 0:29:03it goes into the background really.
0:29:09 > 0:29:15Background or not, unfortunately, it still affects the end value.
0:29:15 > 0:29:18So far, Robin and Tracy have only spent £10,000
0:29:18 > 0:29:21on the first phase of the work here.
0:29:21 > 0:29:26They purchased the property at auction for £177,500,
0:29:26 > 0:29:29making their total spend to date around 190,000.
0:29:29 > 0:29:35So, is it on track to be a good investment for them? What do two local property experts think?
0:29:36 > 0:29:38What a transformation!
0:29:38 > 0:29:41They've done an amazing job so far.
0:29:41 > 0:29:44What they've done is to quality standard.
0:29:44 > 0:29:48It's finished well. There's an awful lot of work to do.
0:29:48 > 0:29:51Certainly, it's better to go slow and do it properly,
0:29:51 > 0:29:55so it's done once, rather than repeating a DIY job.
0:29:55 > 0:30:01What they've done to the land is completely cultivated it and cleared it because it was overgrown.
0:30:01 > 0:30:07They've created paddock space, garden space and general useful space which is what this property needs.
0:30:07 > 0:30:13As far as the pylon is concerned, it's definitely a negative because there is bad press.
0:30:13 > 0:30:17A doctor lives just down the road. She's not put off by it.
0:30:17 > 0:30:21It just depends on people's views. Some people will be, some won't be.
0:30:21 > 0:30:28However, the pylons and overhead wires are likely to reduce the value by up to £100,000.
0:30:28 > 0:30:35But with only £190,000 spent on this land and building, surely there's some return here?
0:30:35 > 0:30:41If the owners put the property on the market in its current state, it could fetch in the region of £325,000,
0:30:41 > 0:30:44but if they incorporate the barn adjacent to the main dwelling,
0:30:44 > 0:30:48that could push that price upwards to around 350.
0:30:48 > 0:30:54In its current form as a three-bed, it'll be worth £250,000 through to £300,000 really as a maximum.
0:30:54 > 0:30:59Going into next door as a five-bed unit, it's a different ball game completely.
0:30:59 > 0:31:05It will be massively more saleable and will be comfortably £350,000 through to £400,000,
0:31:05 > 0:31:08depending on standard of finish.
0:31:08 > 0:31:13The value as it stands I'm quite surprised at because that's quite a high figure.
0:31:13 > 0:31:17There's still a lot of work to be done, so I'm very pleased.
0:31:17 > 0:31:21- Yeah, we could sell it tomorrow and move on.- No.
0:31:21 > 0:31:24They kept their overheads down thanks to Robin's efforts.
0:31:24 > 0:31:31Despite the electrical wires overhead, there's a potential profit of between £60,000 and £135,000,
0:31:31 > 0:31:33so what's next?
0:31:33 > 0:31:35I'm going to sit down and collapse.
0:31:35 > 0:31:39I'm going to go out riding a lot more and play my guitar a lot more,
0:31:39 > 0:31:42which I haven't done a lot lately.
0:31:42 > 0:31:45Get back into all our hobbies that we really love.
0:31:45 > 0:31:51So, after a bit of rest and relaxation, it will be back to the task at hand
0:31:51 > 0:31:54to carry on creating their dream family home.
0:31:56 > 0:31:58# We'll always be together
0:31:58 > 0:32:02# Together in electric dreams
0:32:03 > 0:32:05# We'll always be together
0:32:05 > 0:32:08# However far it seems... #
0:32:11 > 0:32:17I'm in Dawley, Shropshire, a pleasant suburb and one of the oldest parts of Telford.
0:32:17 > 0:32:23Although it's mainly industrial round here, its most famous son was Captain Webb,
0:32:23 > 0:32:25the first man to swim the English Channel.
0:32:25 > 0:32:31So, in the current property climate, I'm hoping this is an area swimming against the tide.
0:32:31 > 0:32:35So, I'm on an ex-local authority housing estate,
0:32:35 > 0:32:39well known for the affordability and size of the houses here, actually,
0:32:39 > 0:32:43a lot of these houses built after the Second World War
0:32:43 > 0:32:47to replace homes that were damaged during the war years.
0:32:47 > 0:32:53This is what I'm here to see - a three-bedroomed semi-detached, had a guide price of 35,000 quid.
0:32:54 > 0:32:56In 2010? That sounds cheap.
0:32:56 > 0:33:01# Tell me why-y-y Tell me why...#
0:33:01 > 0:33:03The outside gives me no clues.
0:33:03 > 0:33:09It looks in reasonable shape. The roof's intact and there's a decently maintained frontage.
0:33:09 > 0:33:13The back garden is a mess, but it looks like a pleasant family home.
0:33:13 > 0:33:18What have we got? A fairly standard layout into a little hallway here,
0:33:18 > 0:33:23stairs up to the bedrooms, living room there, then through into the kitchen.
0:33:23 > 0:33:29But I have to say, I don't need to go too much further in this house to see the first potential problem.
0:33:29 > 0:33:34On this floor here, this bit has raised up. It's almost like it's bubbled.
0:33:34 > 0:33:39Now, I don't think that's just a case of shoddy tiling.
0:33:39 > 0:33:44The biggest fear would be that the concrete underneath has got something going on
0:33:44 > 0:33:46which means it's starting to bubble up.
0:33:46 > 0:33:50The only way to find out what's going on is to dig down
0:33:50 > 0:33:56and maybe get a structural engineer in to make sure nothing horrible is happening.
0:33:56 > 0:33:59The kitchen isn't a bad sized space, fairly dated units,
0:33:59 > 0:34:03so you'd want to replace these, but not before dealing with the floor.
0:34:03 > 0:34:07# Uh-oh, we're in trouble
0:34:07 > 0:34:11# Something's come along and it's burst our bubble, yeah, yeah... #
0:34:11 > 0:34:15Oh, dear. Just when things were looking so promising!
0:34:15 > 0:34:20At least there are no signs of bubbling floors in the lounge and it's a decent size.
0:34:20 > 0:34:24Let's hope upstairs has no more nasty surprises.
0:34:24 > 0:34:29So, upstairs, three bedrooms, but before I talk about those, just a brief safety message.
0:34:29 > 0:34:35If you've got these in your house, make sure that you've got them tied up to the window frame,
0:34:35 > 0:34:38especially if you've got young children.
0:34:38 > 0:34:44There have been horrific accidents with children playing with those and getting entangled.
0:34:44 > 0:34:47What have we got? Bathroom, not a bad size,
0:34:47 > 0:34:51but obviously in need of finishing off or completely refurbishing,
0:34:51 > 0:34:55but I love the fact that the bedrooms are a really good size.
0:34:55 > 0:35:00That's why somebody will buy this place. It's a really good sized family house.
0:35:00 > 0:35:05Two huge double bedrooms, a boxroom, everything you could really need,
0:35:05 > 0:35:08so, all in all, yeah, a positive house.
0:35:10 > 0:35:14But before I get too excited about this property,
0:35:14 > 0:35:19a guide price of £35,000 sounds to me just too good to be true.
0:35:19 > 0:35:23So, what is the catch? Well, in case you haven't guessed already,
0:35:23 > 0:35:27it's the fact that the house is made of non-standard construction,
0:35:27 > 0:35:33which means when it comes to getting a mortgage, you're going to have all sorts of potential problems.
0:35:33 > 0:35:37Spotting that it's non-standard construction is really important.
0:35:37 > 0:35:43You've got to see the property as it's not always mentioned in the auction catalogue.
0:35:43 > 0:35:48What are some of the real giveaways? The stuff on the walls is the first giveaway.
0:35:48 > 0:35:52Can you hear that? Sounds kind of hollow? That's because it is.
0:35:52 > 0:35:58If you look down at the bottom here, you can see that this is an outer layer - again sounds really hollow -
0:35:58 > 0:36:02on top of the concrete blocks which the house is made of.
0:36:02 > 0:36:08If that doesn't convince you, find a place where there's something going through the walls,
0:36:08 > 0:36:13like the pipework coming out here. If I fiddled with that, it would come out.
0:36:13 > 0:36:17If you peer through that one, you can see concrete blocks underneath.
0:36:17 > 0:36:23Either way, what you've discovered is non-standard construction and that sets alarm bells ringing.
0:36:23 > 0:36:29This needs to be a cash purchase. If you didn't discover it before the auction, you're in big trouble.
0:36:30 > 0:36:34The main concern with this type of construction is concrete cancer.
0:36:34 > 0:36:41The solid, reinforced concrete blocks that the semi is made of are literally crumbling to dust.
0:36:41 > 0:36:44That risk scares off mortgage companies.
0:36:44 > 0:36:48It can be solved by putting an outer brick shell around the entire house,
0:36:48 > 0:36:51but that's not cheap, so what are the options here?
0:36:51 > 0:36:55I asked along a local estate agent to tell me more.
0:36:55 > 0:36:59The problem with this type of non-standard construction
0:36:59 > 0:37:03is that it's got a very limited life expectancy.
0:37:03 > 0:37:07The property itself needs some cosmetic work done.
0:37:07 > 0:37:10I did note, however, there is double glazing in the property.
0:37:10 > 0:37:14There also looks like a fairly recently fitted combination boiler.
0:37:14 > 0:37:19The electrics have been updated. It's got a modern consumer unit.
0:37:19 > 0:37:22But the usual things - decor, new carpets, that type of thing.
0:37:22 > 0:37:27So, let's talk money. With a guide price of what was £35,000,
0:37:27 > 0:37:31what could this place be worth after a thorough facelift?
0:37:31 > 0:37:35Once the works have been carried out to this property, the updating,
0:37:35 > 0:37:40I would recommend an asking price of £59,950.
0:37:40 > 0:37:44For rental values, once all the works and everything has been updated,
0:37:44 > 0:37:47I would recommend a rental value of £550 per month.
0:37:47 > 0:37:51So there may be a danger that this house will crumble away,
0:37:51 > 0:37:55although as an investment, it looks pretty solid to me.
0:37:56 > 0:38:02So, not a bad little house. It needs a bit of work and I would investigate that kitchen floor,
0:38:02 > 0:38:06but the biggest issue is that non-standard construction.
0:38:06 > 0:38:10But if you've got the cash to buy it, a good rental property.
0:38:10 > 0:38:13Let's see who went for it when it went under the hammer.
0:38:15 > 0:38:18Lot number 3, we move to Telford, Shropshire.
0:38:18 > 0:38:23This is a three-bed, semi-detached house, so what shall we say for lot number 3?
0:38:23 > 0:38:27Who's going to start me here? £30,000. At 30,000. 31?
0:38:27 > 0:38:2931.
0:38:29 > 0:38:3132?
0:38:31 > 0:38:3332.
0:38:33 > 0:38:3533.
0:38:35 > 0:38:3834. 35?
0:38:40 > 0:38:4334. I'll take a half if it helps. 34 and a half.
0:38:43 > 0:38:48At 34 and a half, standing right. A new bidder at the back, 35,000.
0:38:48 > 0:38:51Right at the back at 35. And a half?
0:38:51 > 0:38:54Back in, 35 and a half. 36, sir?
0:38:54 > 0:38:5836. At 36 then for the first time.
0:38:58 > 0:39:03Another half anywhere else? At 36 for the second time.
0:39:03 > 0:39:06Third and final time at £36,000...
0:39:06 > 0:39:08Your lot, sir.
0:39:08 > 0:39:13'For £36,000, just £1,000 over the guide price,
0:39:13 > 0:39:16'the successful bid came from local man Jonathan.
0:39:16 > 0:39:20'I met up with him and his business partner Anthony.'
0:39:20 > 0:39:26Anthony, Jonathan, lovely to meet you both. Congratulations. Tell me why you wanted to buy this place.
0:39:26 > 0:39:29It meets all the criteria we're looking for -
0:39:29 > 0:39:33a three-bedroomed house, very suitable for the rental market,
0:39:33 > 0:39:36a long-term investment with a good return.
0:39:36 > 0:39:39So how does it work between you two?
0:39:39 > 0:39:42- We're brothers.- Oh, great.
0:39:42 > 0:39:47Basically, we've been in property for ten years.
0:39:47 > 0:39:51- You don't look old enough. - I'm 26, he's a good 28.
0:39:51 > 0:39:54You were 16 and you were 18?
0:39:54 > 0:40:01Yeah. We were brought up in a building family. My father was a builder with a property portfolio.
0:40:01 > 0:40:05And he kindly lent us some money to buy our first house,
0:40:05 > 0:40:09a similar condition to this, and here we are now.
0:40:09 > 0:40:14- How many properties have you built up during that period?- About 15.
0:40:14 > 0:40:19Some of that includes land and some commercial properties.
0:40:19 > 0:40:24'Initially, property developing was a hobby for the brothers as they continued their education.
0:40:24 > 0:40:29'Jonathan graduated from university with a degree in Structural Management
0:40:29 > 0:40:33'and Anthony is a building surveyor who now works in London.
0:40:33 > 0:40:38'Jonathan manages their property portfolio and project-manages the work.'
0:40:38 > 0:40:43- When you're buying places, what do you look for?- Obviously, with a property like this,
0:40:43 > 0:40:47because it's of non-traditional construction, it's extremely hard,
0:40:47 > 0:40:52if not impossible, to get a mortgage, but we're in it long-term.
0:40:52 > 0:40:58Therefore, as long as the return's good, we're making a return on the property, then we're satisfied.
0:40:58 > 0:41:05- So, no surprises that this was non-standard construction?- No, I viewed it prior to the auction.
0:41:05 > 0:41:12We bought one a couple of months back just down the road from here of exactly the same property.
0:41:12 > 0:41:16Now, the kitchen floor is a bit undulating. Any thoughts on that?
0:41:16 > 0:41:18- Hmm, yes.- Any ideas?
0:41:18 > 0:41:23There's probably a little bit of subsidence going on there with the floor.
0:41:23 > 0:41:29- What are you going to do? - Knock it out and level it out. I'm sure it'll be fine.
0:41:29 > 0:41:33How much have you got to spend to sort this place out?
0:41:33 > 0:41:38- Round about £2,500 to £3,000. - What?!- I'd say 5. I'd say 5.
0:41:38 > 0:41:41- We'll see.- Leave him at his desk.
0:41:41 > 0:41:46- Even 5 sounds a bit tight, putting in a new kitchen and a new bathroom? - Yeah, and decoration.
0:41:46 > 0:41:49I think five grand will suffice.
0:41:49 > 0:41:53'With a potential rental value of £500 per month
0:41:53 > 0:41:58'or £6,000 a year, on a £40,000 investment, that could mean a phenomenal return of 15%.
0:41:58 > 0:42:03'These boys certainly know a good investment when they see one.'
0:42:03 > 0:42:09- So what does your dad think about what you've achieved? - I think he's very proud in a way.
0:42:09 > 0:42:13He's... He's been in the game for a long, long time.
0:42:13 > 0:42:17- Does he get involved at all? - He'll come round at the end
0:42:17 > 0:42:23and he'll point out the faults and the fact the doors don't close, little things like that.
0:42:23 > 0:42:27But he's welcome to come and help in the next couple of weeks.
0:42:27 > 0:42:32He likes to pop round just to check we're doing it right and offer suggestions.
0:42:32 > 0:42:34Whether they're taken...
0:42:34 > 0:42:38'They might not always listen to Dad's advice now,
0:42:38 > 0:42:45'but judging by their progress so far, the brothers must be glad they listened to him ten years ago.'
0:42:45 > 0:42:48Anthony and Jonathan know what they're doing
0:42:48 > 0:42:52and their strategy of buying these kind of properties works well,
0:42:52 > 0:42:55as long as you've got the cash to buy the property.
0:42:55 > 0:42:59In terms of how much they'll spend doing this place up,
0:42:59 > 0:43:02they may find that the kitchen floor blows the budget a bit.
0:43:02 > 0:43:05You can see how they get on later in the show.
0:43:08 > 0:43:11The moment of reckoning has arrived.
0:43:11 > 0:43:17- Have those property gambles paid off or have our buyers backed the wrong horse?- Let's find out.
0:43:17 > 0:43:22# Somewhere over the rainbow
0:43:23 > 0:43:27# Way up high
0:43:28 > 0:43:32# And the dreams that you dare to...
0:43:32 > 0:43:37# Oh, why, oh, why can't I...? #
0:43:37 > 0:43:42Maesteg in Mid Glamorgan appears to be a pretty good spot to build a house.
0:43:42 > 0:43:48For some self-builders, the prospect of creating their own home with stunning views across the valley
0:43:48 > 0:43:51seemed a great chance to reach their pot of gold.
0:43:51 > 0:43:56But unfortunately, it's not always easy to find Rainbow's End.
0:43:56 > 0:44:00For some developers here, their dream house became a nightmare,
0:44:00 > 0:44:04but one person's misfortune can be another person's happiness.
0:44:04 > 0:44:07That's what Linda and Mohammed hoped
0:44:07 > 0:44:12when they bought this five-bedroomed, detached shell of a property for 151,000.
0:44:12 > 0:44:15It's yours. Thank you very much.
0:44:15 > 0:44:19Six months on, have they reached the end of the rainbow at last?
0:44:19 > 0:44:23From the outside, it does look less derelict
0:44:23 > 0:44:26and much more cared for.
0:44:26 > 0:44:29And there's promising progress at the back.
0:44:29 > 0:44:32It's started to be prepared for a bit of landscaping,
0:44:32 > 0:44:35but how is fitting out the inside going?
0:44:36 > 0:44:40Hooray! At last there are some stairs in place
0:44:40 > 0:44:44and you can now get up to the five bedrooms.
0:44:46 > 0:44:52And a lot of the rooms have moved from first fix to the final fix stage.
0:44:54 > 0:44:56Shower room.
0:45:00 > 0:45:03Rear reception room.
0:45:12 > 0:45:14And of course, the kitchen.
0:45:20 > 0:45:25Well, as you can see, we've had the kitchen fitted, partly fitted.
0:45:25 > 0:45:28As you can see, we've gone for a high spec
0:45:28 > 0:45:33and, you know, the worktops and sinks and that, it's all put in.
0:45:33 > 0:45:36But the creme de la creme is the cooker.
0:45:36 > 0:45:42It's every woman's dream to have a good cooker, a nice oven and things like that,
0:45:42 > 0:45:44so a lot of cooking on that.
0:45:44 > 0:45:49So, yeah, as you can see, we're basically getting to the top end of it now
0:45:49 > 0:45:53and it will be really nice when it's finished.
0:45:57 > 0:46:01The kitchen is really taking shape at last.
0:46:07 > 0:46:11While upstairs, there are those five bedrooms.
0:46:12 > 0:46:14A large master bedroom
0:46:14 > 0:46:17which is en-suite.
0:46:24 > 0:46:29And four other bedrooms, one of which is also en-suite.
0:46:31 > 0:46:34Plus a fantastic master bathroom.
0:46:37 > 0:46:42It also comes with a gallery landing and doors which will lead out to a balcony
0:46:42 > 0:46:45for enjoying those fabulous views.
0:46:45 > 0:46:48But one of the heaviest jobs was certainly the garden.
0:46:48 > 0:46:52As you can see, it's all paved here now.
0:46:52 > 0:46:56It's all been levelled up because it was quite a drop before.
0:46:56 > 0:47:00If you look down there, we've gone up two tiers.
0:47:00 > 0:47:04We're going to put trees on the top and hopefully do a barbecue area down there.
0:47:04 > 0:47:08And put some shrubs and fence that area down there.
0:47:08 > 0:47:11It's a big difference here. It is a big difference.
0:47:11 > 0:47:16They've done their best to maximise what little space there is here.
0:47:16 > 0:47:21Just getting it level was no easy task and judging by the six months it's taken,
0:47:21 > 0:47:24they must have had some challenges along the way.
0:47:24 > 0:47:29It's been quite difficult, to be honest, because you want to get the job done.
0:47:29 > 0:47:32You're investing money in the property
0:47:32 > 0:47:38and then you're finding stuff, more expense which you didn't anticipate on.
0:47:38 > 0:47:43You know, like the services, for instance. We thought they were connected and they're not.
0:47:43 > 0:47:47As Linda lives nearly an hour away in Cardiff,
0:47:47 > 0:47:51project-managing this property can't have been easy either.
0:47:51 > 0:47:55The builders would say, "We need tiles, we need to look for doors."
0:47:55 > 0:47:58So we come down, we have a look.
0:47:58 > 0:48:01About once a week, something like that.
0:48:01 > 0:48:05You know, the family... Especially Omar.
0:48:05 > 0:48:09As you notice, he's not here. He's too busy in another project.
0:48:09 > 0:48:13Linda's husband Mohammed helped with some of the re-design
0:48:13 > 0:48:16and they used a builder they'd worked with before,
0:48:16 > 0:48:23but with less family input and more work than anticipated, it was likely to put pressure on the budget.
0:48:23 > 0:48:28To date, we've spent about 85,000 on it. Yes, to date.
0:48:28 > 0:48:33And obviously now, we've got flooring left to do and the work outside,
0:48:33 > 0:48:35so we're budgeting about 20 for that.
0:48:36 > 0:48:40An extra 20,000 will push their costs up
0:48:40 > 0:48:43to between around 100,000 and 105,000.
0:48:43 > 0:48:46Their purchase price was £151,000,
0:48:46 > 0:48:50so their total spend is heading towards 260,000.
0:48:50 > 0:48:55Is there any profit here? What do two local estate agents think?
0:48:55 > 0:48:59I think they've done a very good job on it
0:48:59 > 0:49:01since I last saw the property.
0:49:01 > 0:49:04I think it's come up very well.
0:49:04 > 0:49:06It's a big, big property.
0:49:06 > 0:49:09The layout of the rooms is excellent,
0:49:09 > 0:49:11a lot of circulation space,
0:49:11 > 0:49:14I love the gallery landing.
0:49:14 > 0:49:20But the garden I do feel is disproportionately small for the size of the property on offer.
0:49:20 > 0:49:26That's a real concern. This is a family-sized house without a family-sized garden.
0:49:26 > 0:49:32So just how much will that affect its value, bearing in mind they've invested nearly £260,000 here?
0:49:32 > 0:49:36I would market this property in the region of £285,000.
0:49:36 > 0:49:42I would expect to achieve, given current market conditions, around about £275,000 to £280,000.
0:49:42 > 0:49:45I thought it would be a bit more than that,
0:49:45 > 0:49:49but this present climate, things have only got to go up now,
0:49:49 > 0:49:53so obviously, we're in the dark stages here.
0:49:53 > 0:49:58Well, at least there's some profit, even if it's only £20,000.
0:49:58 > 0:50:04Although the plan is to sell, rental might have to be an option until the market picks up a bit.
0:50:04 > 0:50:08If I was to value it for rental, it would be around £900 a month.
0:50:08 > 0:50:12Probably circa 875, 900 per calendar month.
0:50:12 > 0:50:16Rental? For this area, yeah, I think it's quite good.
0:50:16 > 0:50:20£900 a month would represent around £11,000 a year,
0:50:20 > 0:50:25just over a 4% yield, so at present, this isn't a big money-spinner.
0:50:25 > 0:50:28What is Linda's take on this project?
0:50:28 > 0:50:34We've had other projects on the go and they've been completed. We're now in the process of selling one,
0:50:34 > 0:50:39so finish off this venture, then speculate to accumulate on other properties.
0:50:39 > 0:50:43So, for Linda and her family, the search continues
0:50:43 > 0:50:47to find that pot of gold at the end of the rainbow.
0:50:57 > 0:51:00'In the Telford suburb of Dawley, Shropshire,
0:51:00 > 0:51:05'post-war demand for housing meant new construction methods were employed,
0:51:05 > 0:51:10'using concrete blocks laid on top of metal reinforced rods.
0:51:10 > 0:51:16'These non-standard constructions can suffer from cracking and deterioration called concrete cancer
0:51:16 > 0:51:20'and this makes them more or less unmortgageable.
0:51:20 > 0:51:27'But for brothers Jonathan and Anthony, non-standard didn't have to mean non-profitable.'
0:51:27 > 0:51:32- Why did you want to buy this place? - I think it meets all the criteria that we're looking for -
0:51:32 > 0:51:36a three-bedroomed house, very suitable for the rental market,
0:51:36 > 0:51:40a long-term investment with a good return.
0:51:40 > 0:51:46When they were teenagers, Jonathan and Anthony were encouraged by their dad to buy properties,
0:51:46 > 0:51:49so they have experience beyond their years.
0:51:49 > 0:51:51But two months after my first visit,
0:51:51 > 0:51:57had they been able to turn this from a non-standard into a more regular money-making machine?
0:52:02 > 0:52:04Well, yes, they have.
0:52:04 > 0:52:09This is now much as you would expect from a good rental property -
0:52:09 > 0:52:14clean, fresh, bright and functional and that bubbly kitchen floor is now sorted.
0:52:14 > 0:52:20Since your last visit in here, we've ripped out the old kitchen, put in the new fitted kitchen,
0:52:20 > 0:52:25ripped up the ceramic floor tiles and replaced it with a vinyl floor covering.
0:52:25 > 0:52:30New tiles, new decoration and a new cooker and extractor fan.
0:52:30 > 0:52:35And I think... It does the job, it's minimalistic, it's basic.
0:52:35 > 0:52:39It's easy to keep tidy for the tenants and it looks good.
0:52:42 > 0:52:45They took the same practical approach upstairs.
0:52:47 > 0:52:50With the three bedrooms
0:52:50 > 0:52:53and a much improved bathroom suite.
0:52:57 > 0:53:03There's also a significant improvement with the outside space as Jonathan explains.
0:53:03 > 0:53:07In the garden, what we've done is we've stripped everything back.
0:53:07 > 0:53:13There was decking down here which we've carted away in a skip, a lot of rubbish down the bottom,
0:53:13 > 0:53:17and just rearranged it and made it minimalistic.
0:53:17 > 0:53:21Basic, what the tenants want, they can do what they want with it,
0:53:21 > 0:53:25but it's tidied it up and made the house a lot tidier around the back.
0:53:25 > 0:53:31So, with the garden ready just to be grassed over, the house is ready for the rental market.
0:53:31 > 0:53:34It seems it's not a moment too soon.
0:53:34 > 0:53:38The tenants move in in a week's time.
0:53:38 > 0:53:43There's a few snagging little bits, a bath panel and a gas check.
0:53:43 > 0:53:49Talk about job done! Refurbished and rented out in under ten weeks, that's impressive.
0:53:49 > 0:53:52It's Jonathan who deserves much of the credit.
0:53:52 > 0:53:57I've been in charge of both this property and the one we bought at the same time.
0:53:57 > 0:54:01Anthony, who was here last time, works down in London,
0:54:01 > 0:54:04so he's been in contact via email and phone,
0:54:04 > 0:54:09but it's on my shoulders to get these houses renovated and let out.
0:54:09 > 0:54:14Jonathan appears to get the short straw, but he earns a wage for the refurbishment work
0:54:14 > 0:54:19and for acting as letting agent, as well as his share of the investment.
0:54:19 > 0:54:24In total, on this, we've gone a little bit over budget. It's about £5,200.
0:54:24 > 0:54:28Anthony was a little bit optimistic at 2,500.
0:54:29 > 0:54:33Goodness, just £5,000 on this house! They really do know
0:54:33 > 0:54:36how to get value for money.
0:54:36 > 0:54:43They paid £36,000 for it, so for just over £40,000, they've got a very decent three-bed semi.
0:54:43 > 0:54:49But its non-standard construction restricts the value. The question is, by how much?
0:54:49 > 0:54:51I think the change is very good.
0:54:51 > 0:54:55He's redecorated and refurbished the bathroom and kitchen.
0:54:55 > 0:55:00He's also made some provision for extra off-road parking at the front.
0:55:00 > 0:55:05It's a tidy refurb of this style of house, ideal for the rental market.
0:55:05 > 0:55:11The property doesn't lend itself to the residential sales market because of its nature of construction.
0:55:11 > 0:55:14They are hard to get mortgages on.
0:55:14 > 0:55:19But with their spend of just over 40,000, surely they have a solid investment?
0:55:19 > 0:55:24I would put this on the open market at a recommended asking price of £65,000.
0:55:24 > 0:55:27It would achieve between £60,000 and £65,000.
0:55:27 > 0:55:31It's good to know that there's some money to be made from it,
0:55:31 > 0:55:36but like I said before, it's a rental property for the rental portfolio.
0:55:36 > 0:55:41So, they're quids in on the resale market, but this is all about rental for the brothers.
0:55:41 > 0:55:45They've already found a tenant. Did they get a reasonable deal?
0:55:45 > 0:55:51I would expect to achieve, in rental terms, £550 per calendar month.
0:55:51 > 0:55:54In the current market, which is very strong,
0:55:54 > 0:55:59it should achieve between £550 and £575 per calendar month.
0:55:59 > 0:56:02That's spot-on. We've let it out for 550.
0:56:03 > 0:56:09Wow! A rental return of £550 a month on an investment of just £40,000
0:56:09 > 0:56:11represents a whopping 16% yield.
0:56:11 > 0:56:14Amazing!
0:56:14 > 0:56:17Clearly, they learnt the trade well from their dad.
0:56:17 > 0:56:22My dad, I think he's pleased with it. He's been helping here and there when he can.
0:56:22 > 0:56:24Useful cheap labour force!
0:56:24 > 0:56:27But no, I think he'll be proud of this one
0:56:27 > 0:56:32and I think he's proud of both of us for building up the portfolio.
0:56:32 > 0:56:36They might have had an early start in property development,
0:56:36 > 0:56:42but they have certainly done an impressive job here and I'm sure there are many more to come.
0:56:44 > 0:56:48Well, whether you're a property novice or an old hand,
0:56:48 > 0:56:52make sure you join us next time for more stories from the auction rooms.
0:56:52 > 0:56:56- Tune in to more Homes Under The Hammer. Goodbye.- Goodbye.
0:57:12 > 0:57:16Subtitles by Subtext for Red Bee Media Ltd 2010
0:57:16 > 0:57:19Email subtitling@bbc.co.uk