0:00:02 > 0:00:03An Englishman's home is his castle.
0:00:03 > 0:00:06And whether it's a grand house or a small flat,
0:00:06 > 0:00:08most people take pride in where they live.
0:00:08 > 0:00:11But the starting point is to find the right home,
0:00:11 > 0:00:14and one way to do that is under the hammer.
0:00:39 > 0:00:45Well, it can be a daunting task, renovating a property, especially if you've not done it before.
0:00:45 > 0:00:49It can also reap you financial reward if you keep on top of things.
0:00:49 > 0:00:53So what challenges awaited the buyers on today's show?
0:00:54 > 0:00:58'In Stoke-on-Trent, there's a cracking two-bedroom house.'
0:00:58 > 0:01:00You see that great big gap there?
0:01:00 > 0:01:03Better not push that too hard.
0:01:05 > 0:01:09'In London, this one-bedroom second-floor flat takes my breath away.'
0:01:09 > 0:01:14- SHE PANTS - Now I'm in the flat.
0:01:14 > 0:01:18'And this house in Coupar Angus, Perthshire, doesn't look great from outside,
0:01:18 > 0:01:22'and inside, you're going to have to...'
0:01:22 > 0:01:24Use your imagination.
0:01:26 > 0:01:31'These properties are being sold at auction, and we'll find out who bought them and what they paid
0:01:31 > 0:01:34- 'when they went under the hammer.' - Sold, 190.
0:01:37 > 0:01:42'This is Kidsgrove, Stoke-on-Trent, just north of Newcastle-under-Lyme
0:01:42 > 0:01:46'and a stone's throw from the borders of fashionable Cheshire.
0:01:46 > 0:01:49'The town developed around the coalmining industry,
0:01:49 > 0:01:53'but these days, it's commuters who've settled in and hiked up the prices.
0:01:53 > 0:01:58'I wonder if I can dig deep and unearth a bargain today.'
0:01:59 > 0:02:02If somebody described something as mature, what would you expect?
0:02:02 > 0:02:08A person who was very responsible? A fine wine, perhaps? Maybe a Cheddar cheese.
0:02:08 > 0:02:10Not normally a term that's applied to property,
0:02:10 > 0:02:13but it was in this case, in the auction catalogue.
0:02:13 > 0:02:16What I'm here to see is this two-bedroom mid-terrace.
0:02:16 > 0:02:19Has a guide price of £47,000.
0:02:19 > 0:02:21So, in this case, what does mature mean?
0:02:21 > 0:02:24# This old house is getting shaky
0:02:24 > 0:02:27# This old house is getting old
0:02:27 > 0:02:29# This old house lets in the rain
0:02:29 > 0:02:31# This old house lets in the cold
0:02:33 > 0:02:35So, what's in store? Wow.
0:02:35 > 0:02:38Well, a bit of a state, actually, this property.
0:02:38 > 0:02:42Straight away, I can see solid floors
0:02:42 > 0:02:45and I doubt there's a damp-proof course.
0:02:45 > 0:02:50All the walls are going to need replastering. But, on the positive side, a nice size living room
0:02:50 > 0:02:53and then through into a rear living room here.
0:02:53 > 0:02:59The first thing I'd think about doing is taking out that wall to create an open-plan area. A few nice touches.
0:02:59 > 0:03:01Original tiles on the floor.
0:03:01 > 0:03:03They've obviously had their day,
0:03:03 > 0:03:07but it just shows, this property clearly has not been touched
0:03:07 > 0:03:11for a very, very long time, which equals lots of money to spend doing it up.
0:03:11 > 0:03:14# I feel so untouched right now
0:03:14 > 0:03:17# Need you so much
0:03:17 > 0:03:19# Somehow I can't forget you
0:03:19 > 0:03:25'It looks as though most things will need to be touched up in this cottage.
0:03:25 > 0:03:28'New wiring, new plaster, new floors and ceilings.
0:03:28 > 0:03:32'But before we get too carried away, let's take a look at the back.'
0:03:34 > 0:03:37So, fairly classic layout for this kind of property
0:03:37 > 0:03:43with your bathroom and toilet there at the very rear of the property, in total need of refurbishment
0:03:43 > 0:03:45and access through the kitchen, which isn't ideal.
0:03:45 > 0:03:52But it's nothing in comparison to the kitchen, which is in a right state and has an interesting feature.
0:03:54 > 0:03:59Yep, currently doesn't have a ceiling. Still, who likes the idea of al fresco cooking?
0:03:59 > 0:04:02'It's not just the ceiling that should be replaced.
0:04:02 > 0:04:06'The whole kitchen needs stripping back and rebuilding.
0:04:10 > 0:04:14'Outside, you can see the roof needs some attention
0:04:14 > 0:04:17'and the windows have cracks around the frames.
0:04:17 > 0:04:20'In fact, it seems that cracks are quite a feature of this cottage.'
0:04:22 > 0:04:24So, two bedrooms up here, not a bad size.
0:04:24 > 0:04:27Hang on a minute. Forget about the size,
0:04:27 > 0:04:31something much more serious going on in the corner here.
0:04:31 > 0:04:34Can you see that great big gap there?
0:04:34 > 0:04:38Better not push that too hard.
0:04:38 > 0:04:42Uh-oh. Over on the other side here, another crack.
0:04:42 > 0:04:47It's so big, I can actually get my fingers in. What's happening is the whole front of this property
0:04:47 > 0:04:52is starting to tilt. I say starting. Who knows? You need to check this out
0:04:52 > 0:04:57and find out if that's historical or if it's been like that more recently.
0:04:57 > 0:05:01Whatever, it needs to be checked out by somebody who knows what they're doing.
0:05:05 > 0:05:08'Anyone can tell you that it's a serious problem.
0:05:08 > 0:05:12'But just how bad requires a structural engineer.
0:05:12 > 0:05:15'And what it might cost to fix is anyone's guess at the moment.
0:05:15 > 0:05:19'The whole place is a bit of a decomposing time capsule
0:05:19 > 0:05:24'with problem after problem concealed beneath layers of wallpaper.
0:05:24 > 0:05:27'It's the same story in the second bedroom.
0:05:27 > 0:05:29'The more this house has been stripped back,
0:05:29 > 0:05:32'the more issues have come to the fore.
0:05:35 > 0:05:38'Mind you, it's quite an interesting history lesson
0:05:38 > 0:05:42'about how decorating trends have changed over the years.'
0:05:42 > 0:05:45It always pays to do your research before you buy a property
0:05:45 > 0:05:48and Sherlock Roberts has been doing a bit of snooping around
0:05:48 > 0:05:54and I've found out that this house actually sold for £44,000 seven months ago.
0:05:54 > 0:05:57That's £3,000 less than the guide price.
0:05:57 > 0:06:00You've got to ask yourself, why is somebody turning it around so quick?
0:06:00 > 0:06:05I mean, maybe those cracks proved to be more of a problem than they anticipated.
0:06:05 > 0:06:09Really, you've got to ask yourself, am I taking on more than I can chew?
0:06:09 > 0:06:12At the end of the day, it's elementary, my dear viewer.
0:06:14 > 0:06:17'To check out my theories, I asked a local estate agent to come
0:06:17 > 0:06:20'and do a bit of detective work.'
0:06:22 > 0:06:26Having looked round, I think it needs to be taken back to basics.
0:06:26 > 0:06:30Replastering, rewiring, new windows.
0:06:33 > 0:06:37'What would she advise the new owners to do here?
0:06:37 > 0:06:40'This is going to be a long-term development, I would imagine.
0:06:40 > 0:06:42I think if they were to spend the money on it now,
0:06:42 > 0:06:45they probably wouldn't get the return on the market.
0:06:45 > 0:06:50If it was a rental property, a long-term investment, I think it could be quite good.
0:06:50 > 0:06:52'Hm. Interesting.
0:06:54 > 0:06:58'What's the rental market like and how much could they get?'
0:06:58 > 0:07:03The rental market in Kidsgrove, particularly, for this sort of property is very buoyant.
0:07:03 > 0:07:06I think you could achieve £450 per calendar month.
0:07:07 > 0:07:13'The auction guide price was £47,000, but the cottage obviously needs money spent on it.
0:07:13 > 0:07:17'What could it be worth on the open market once done up?'
0:07:19 > 0:07:23The property as it stands today, I would value it around £55,000.
0:07:23 > 0:07:27Once the money has been spent on the property, I would say £20,000 to £25,000,
0:07:27 > 0:07:31looking to achieve maybe £90,000 to £95,000.
0:07:32 > 0:07:37Well, in this case, this mature property is currently on its last legs
0:07:37 > 0:07:40and certainly in need of a full health check-up.
0:07:40 > 0:07:43Let's find out who bought it when it went under the hammer.
0:07:47 > 0:07:51Nice looking terraced house, this. 40 to start?
0:07:51 > 0:07:53Thank you, sir. 40,000 opening bid.
0:07:53 > 0:07:5745 can I say now? I'll take one if it helps. 41 can I say?
0:07:57 > 0:08:00Seated, £41,000.
0:08:00 > 0:08:0242, sir? 42.
0:08:02 > 0:08:0443.
0:08:04 > 0:08:0544.
0:08:05 > 0:08:0645.
0:08:06 > 0:08:0846.
0:08:08 > 0:08:1047.
0:08:10 > 0:08:1348. 49?
0:08:13 > 0:08:1549.
0:08:15 > 0:08:1650.
0:08:16 > 0:08:1851? 51.
0:08:19 > 0:08:2152. 53?
0:08:21 > 0:08:2253.
0:08:22 > 0:08:2554.
0:08:25 > 0:08:2755? 55.
0:08:27 > 0:08:2856.
0:08:28 > 0:08:32No? 56,000 standing left, then.
0:08:32 > 0:08:35At £56,000. 57 anywhere else?
0:08:35 > 0:08:39I'll take a half. 56 and a half. 57.
0:08:41 > 0:08:43Another half? No? Sure?
0:08:43 > 0:08:46At 57,000, standing left. Are we all done?
0:08:46 > 0:08:48At 57, then, for the first time.
0:08:48 > 0:08:52At 57 for the second time.
0:08:52 > 0:08:56Third and final time at £57,000.
0:08:56 > 0:08:58It's your lot, sir. Well done.
0:08:58 > 0:09:04'The winning bid of £57,000, £10,000 above the guide price,
0:09:04 > 0:09:09'was made by Carl, a safety officer for a manufacturing firm.
0:09:09 > 0:09:12'He hopes to supplement his pension by renting the cottage out
0:09:12 > 0:09:17'after spending four to eight months renovating it. I met up with him to discuss his plans.'
0:09:18 > 0:09:22- Carl, good to meet you.- Nice to meet you.- Congratulations.- Thank you.
0:09:22 > 0:09:26- Tell me why you wanted to buy the house.- Er, it's extremely local to me
0:09:26 > 0:09:30and I've been looking at the properties for quite some time
0:09:30 > 0:09:35and trying to make a purchase. The market's still relatively low locally.
0:09:35 > 0:09:37I think it would be a good investment property.
0:09:37 > 0:09:40You say you're very local. How local?
0:09:40 > 0:09:43It's about 20 or 30 feet away.
0:09:43 > 0:09:45- 30 feet?- Yeah.- OK!
0:09:45 > 0:09:48- So you live across the road. - Yeah.- Oh, great!
0:09:48 > 0:09:53Well, a really good bit of advice is to buy in an area that you know and you can be close to.
0:09:53 > 0:09:55- You couldn't get much closer than that!- No.
0:09:55 > 0:09:58So you obviously know about these properties, then.
0:09:58 > 0:10:03They're very well sought-after. When they're priced realistically, they sell really quick
0:10:03 > 0:10:05and they rent really quick, as well.
0:10:05 > 0:10:08'There's nothing like local knowledge
0:10:08 > 0:10:11'and local boy Carl has certainly got that.
0:10:11 > 0:10:17'Did he know something that others didn't when he paid £10,000 over the guide price?'
0:10:17 > 0:10:22I paid more than I wanted to, really, but I went right up to my limit and managed to get it.
0:10:22 > 0:10:26- Obviously, it needs quite a lot of work.- It needs extensive work, yeah.
0:10:26 > 0:10:31- It's a wreck.- Well, at least you're realistic about it.- Yeah.
0:10:31 > 0:10:37I knew the property needed basically gutting from top to bottom, so I knew what I was buying.
0:10:37 > 0:10:41- Have you got any experience in this kind of thing?- Very little.
0:10:41 > 0:10:45Very little experience. Initially, I was going to
0:10:45 > 0:10:50put it out to builders, but due to the price I paid, I may have to try
0:10:50 > 0:10:54and negotiate my father to help me and do some of the easier tasks myself.
0:10:54 > 0:11:00'Although not a builder by trade, Carl's father has a lot of renovation experience,
0:11:00 > 0:11:05'so Carl might need to persuade him to come out of retirement to work on this place.
0:11:05 > 0:11:11'Taking on an easy task is one thing, but he didn't get a structural survey before buying this property,
0:11:11 > 0:11:15'which, judging by those cracks, may have been a mistake.'
0:11:15 > 0:11:17The left-hand crack is old movement
0:11:17 > 0:11:20and the right-hand crack is slightly newer movement.
0:11:20 > 0:11:25I have bid on previous properties in the past
0:11:25 > 0:11:30and a number of these properties on this row have got exactly the same cracking.
0:11:30 > 0:11:37So we're going to put in some supports and some epoxies and consolidate the cracks.
0:11:37 > 0:11:41- Right. So just tie them all in together so it doesn't get any worse. - Yeah.
0:11:41 > 0:11:43'Carl seems to be across that problem,
0:11:43 > 0:11:46'but there's still a lot of work to be done here
0:11:46 > 0:11:49'and he's already spent more buying it than he intended.
0:11:49 > 0:11:54'How much more does he think it will cost to get it into a letable state?'
0:11:54 > 0:11:56My guestimate for renovation would be about 18K.
0:11:56 > 0:12:00I suspect builders will be coming in at about 20K, 22K.
0:12:00 > 0:12:04'What's his next step when all the work's finished?'
0:12:04 > 0:12:09Just get a lodger in as soon as possible
0:12:09 > 0:12:11and start to recover a little bit of money.
0:12:11 > 0:12:15- And then would you do it again?- I'll let you know when it's been done.
0:12:15 > 0:12:18- It's all dependent on how it goes. - Yeah.
0:12:18 > 0:12:22- Congratulations. Good luck. - Thanks very much.- Look forward to seeing how you get on.
0:12:22 > 0:12:26'Carl has the advantage of living just across the road,
0:12:26 > 0:12:31'but there's a lot of work to do and he could fall foul in not getting a survey.
0:12:31 > 0:12:34'But surely he hasn't put all his eggs in one basket?'
0:12:35 > 0:12:40Well, I hope that safety-conscious Carl has got a safety margin in his budget,
0:12:40 > 0:12:45because I think there could be some unforeseen expenses once he starts renovating this place.
0:12:45 > 0:12:50Still, it couldn't be more convenient and when it's finished, I'm sure it will be a good investment property.
0:12:50 > 0:12:53You can find out how he gets on later in the show.
0:12:58 > 0:13:01'This is Bow in the East End of London,
0:13:01 > 0:13:05'near Stratford, the Docklands with its useful light railway, and the city.'
0:13:05 > 0:13:09'Despite being on the edge of the official Olympic area,
0:13:09 > 0:13:14'Bow should still benefit from all the investment in the 2012 games.'
0:13:16 > 0:13:22This is Campbell Road. It's just a five minute walk from Bow Road Tube and the Bow Church DLR,
0:13:22 > 0:13:27which is fantastic because it gets you straight into London in a matter of minutes.
0:13:27 > 0:13:31I'm here to see this second-floor flat. It's right up there on the top floor
0:13:31 > 0:13:35in this quite attractive, gorgeous mid-terrace building.
0:13:35 > 0:13:39Now, the only thing you've got to think about is parking here
0:13:39 > 0:13:42because the only way you can park is if you apply for a parking permit,
0:13:42 > 0:13:46so that is something the new owner of this property has really got to think about.
0:13:46 > 0:13:49The guide price - just £165,000.
0:13:52 > 0:13:58'£165,000 is pretty reasonable for a flat in this part of London,
0:13:58 > 0:14:02'especially considering this ex-local authority property
0:14:02 > 0:14:05'still has 125 years left on its lease.
0:14:05 > 0:14:08'The period building it's in is very attractive, too.
0:14:08 > 0:14:11'But I've got to get up there first.
0:14:12 > 0:14:15'And then, when I finally get into the flat...'
0:14:15 > 0:14:18Oh, no! More stairs!
0:14:18 > 0:14:22Now, I thought I was relatively fit, but look.
0:14:22 > 0:14:27- SHE PANTS - Now I'm in the flat. Let's have a little look around.
0:14:27 > 0:14:30You've got a bathroom down there, not really suitable.
0:14:30 > 0:14:33But you have got this little bit of space here. You could utilise this.
0:14:33 > 0:14:39I'm so out of breath! And put a nice little desk here, so you could have this as a sort of study area.
0:14:39 > 0:14:42Window up there to let some natural light in, which is nice.
0:14:42 > 0:14:46And I suppose this is the main bedroom.
0:14:46 > 0:14:49First things first, get this woodchip wallpaper off,
0:14:49 > 0:14:54paint it a different colour. And the thing that bothers me here
0:14:54 > 0:14:58is this big old set of wardrobes. You'll need to dismantle them and get them out,
0:14:58 > 0:15:03and the only way to get anything out in this flat is go all the way down those stairs.
0:15:03 > 0:15:05# Down, down, deeper and down
0:15:05 > 0:15:07'So far, we've got a lot of stairs,
0:15:07 > 0:15:11'a big bathroom that needs updating
0:15:11 > 0:15:14'and a large bedroom that could do with redecorating.
0:15:14 > 0:15:17'At least it's only cosmetic work that's necessary.
0:15:17 > 0:15:24'But I think the real key to developing a flat is always to try and maximise the square footage.'
0:15:24 > 0:15:27With this flat, I'm looking for a bit of extra space.
0:15:27 > 0:15:32And I've found it. Look at this. Little corridor, not used for anything,
0:15:32 > 0:15:37so you could actually add it onto the kitchen space, which needs completely gutting
0:15:37 > 0:15:40and a brand new kitchen needs to be installed in there.
0:15:40 > 0:15:45So we walk straight through into the living area. You've got a really good space in here.
0:15:45 > 0:15:50It needs decorating. The wallpaper needs peeling off. But you know what I would like to do?
0:15:50 > 0:15:56Take this wall out and change this all around and have a nice kitchen-diner open-plan area.
0:15:56 > 0:16:01But like most things, I don't think it'll be as straightforward
0:16:01 > 0:16:04as just getting the sledgehammer out and knocking it down.
0:16:07 > 0:16:14'You'd have to make sure it's not a structural load-bearing wall and OK the work with your freeholder.
0:16:14 > 0:16:20'But there's yet another reason why you can't just knock this flat about when and however you like.'
0:16:20 > 0:16:24And that's because this building is Grade II listed,
0:16:24 > 0:16:27which means every change you make inside as well as out
0:16:27 > 0:16:30needs to be cleared with a conservation officer.
0:16:30 > 0:16:34So, if you have lovely sash windows, like this, yes, they look beautiful,
0:16:34 > 0:16:37but they can be draughty and rattly and noisy,
0:16:37 > 0:16:40especially on a main road like you have here.
0:16:40 > 0:16:43But, because of the listing, they have to stay.
0:16:43 > 0:16:47So the only option is to refurbish what's here,
0:16:47 > 0:16:51and that can cost you around £200 per window.
0:16:51 > 0:16:54But, in my opinion, it's well worth the money,
0:16:54 > 0:16:57because in this flat, it's the only character feature left.
0:17:01 > 0:17:05'That Grade II listing wasn't mentioned in the auction catalogue.
0:17:05 > 0:17:08'Another reason why you really should read the legal pack.
0:17:13 > 0:17:19'I asked a local estate agent for his thoughts on whether this property would sell on easily.'
0:17:19 > 0:17:24The location, being very close to the stations, is very, very good.
0:17:24 > 0:17:27As it's a period building in a terrace of very lovely houses,
0:17:27 > 0:17:29the outside is desirable.
0:17:29 > 0:17:34It doesn't look like it's got structural problems, but a survey will show this.
0:17:34 > 0:17:36Does it need any work? Obviously, it does.
0:17:36 > 0:17:39But if the work is done very nicely, it will sell.
0:17:40 > 0:17:43'The flat had a guide price of £165,000
0:17:43 > 0:17:48'and seems to tick all the boxes as far as the estate agent is concerned.
0:17:48 > 0:17:52'So how much does he think it would sell for once renovated?'
0:17:52 > 0:17:58I would value this property, once renovated, in between £210,000 and £220,000.
0:18:01 > 0:18:03'And what about a rental figure?'
0:18:03 > 0:18:09The rental you could get for this property is approximately £950 per month.
0:18:10 > 0:18:13There is quite a bit of work to do here,
0:18:13 > 0:18:17but really this flat is a pretty straightforward refurbishment project.
0:18:17 > 0:18:21Although I wouldn't fancy lugging all the materials up and down those stairs.
0:18:21 > 0:18:24But it is well located for transport
0:18:24 > 0:18:27and it should make a good buy-to-let investment and be easy to sell on.
0:18:27 > 0:18:32So who bid for this Bow flat? Let's find out when we head to auction.
0:18:35 > 0:18:40One-bed second-floor flat between Canary Wharf and the City.
0:18:40 > 0:18:42It's a handy location. Where do you wish to start?
0:18:42 > 0:18:46150. I'm not going to go below 150. 150 in the room.
0:18:46 > 0:18:49155. 155.
0:18:49 > 0:18:52160. 165.
0:18:52 > 0:18:55170. 175.
0:18:55 > 0:18:57175 with you.
0:18:57 > 0:18:59180.
0:18:59 > 0:19:01180. 185?
0:19:03 > 0:19:05181?
0:19:05 > 0:19:08182. 183.
0:19:08 > 0:19:11183 at the back. 184.
0:19:11 > 0:19:15185 at the back. 186.
0:19:15 > 0:19:20187? 186 sitting down. 187 anywhere?
0:19:21 > 0:19:25186, first time, second... 187. 188.
0:19:25 > 0:19:28189.
0:19:28 > 0:19:30190.
0:19:31 > 0:19:33191.
0:19:33 > 0:19:38191. If not, 190 to you, first time, second time,
0:19:38 > 0:19:40third and last time. If you're all done...
0:19:42 > 0:19:44Sold, 190.
0:19:44 > 0:19:49'The winning bid of £190,000 was made by apprentice plumber Neil
0:19:49 > 0:19:52'on behalf of his bosses, Colm and Robert.
0:19:57 > 0:20:03'Colm couldn't make it today, so I met his business partner, Robert, and their apprentice, Neil.'
0:20:03 > 0:20:06Why did these guys send you off to do all the bidding, then?
0:20:06 > 0:20:10Because they run the plumbing, heating and electrical firm,
0:20:10 > 0:20:13they're in their company vans driving round,
0:20:13 > 0:20:16fixing or installing or whatever,
0:20:16 > 0:20:21so because I'm the lowest-ranking engineer, they just sent me to the auction for the day.
0:20:22 > 0:20:28'Colm's not only busy driving around in his van, he's also rather preoccupied at home at the moment
0:20:28 > 0:20:31'because he's about to become a dad.
0:20:31 > 0:20:36'But why have business partners Robert and Colm decided to go into property development?'
0:20:36 > 0:20:42Definitely Colm's idea. He wants to do something else, not only plumbing,
0:20:42 > 0:20:46and see can he make some profit on this or not?
0:20:46 > 0:20:50Hold on a minute. Colm's going to be very busy being a dad these days,
0:20:50 > 0:20:54so a lot of this might fall to you. Are you prepared for hard work?
0:20:54 > 0:20:58Yes, I've been involved in refurbishments before
0:20:58 > 0:21:01and I think I can cope with this flat, as well.
0:21:01 > 0:21:04You paid £190,000 for this.
0:21:04 > 0:21:08Do you think you got that at a good price or a little bit toppy there?
0:21:08 > 0:21:15I think 190 was the maximum we would pay.
0:21:15 > 0:21:19But if we do this to the top standard,
0:21:19 > 0:21:24I think I can expect £235,000 from this, maybe £240,000.
0:21:24 > 0:21:26£240,000?
0:21:26 > 0:21:32So what do you think you can do to this flat to really make it look fantastic?
0:21:32 > 0:21:35Very high quality kitchen, new bathroom,
0:21:35 > 0:21:39new floors, probably timber or panels in the living room,
0:21:39 > 0:21:42carpet in the bedroom and staircase,
0:21:42 > 0:21:45modern paints, modern colours.
0:21:45 > 0:21:49'So, no walls coming down here by the looks of it.
0:21:49 > 0:21:55'But will they be installing any fireplaces or cornicing to give the flat some character?
0:21:56 > 0:21:58Er, I don't think so.
0:21:58 > 0:22:04I think that it will be a modern place and there will be no place for cornicing.
0:22:04 > 0:22:07So you're leaving it really contemporary, really modern.
0:22:07 > 0:22:11How much are you going to spend? What's your budget for the work here?
0:22:11 > 0:22:15I expect to spend £15,000. I don't think much more.
0:22:15 > 0:22:18And are you going to be doing most of the work yourselves?
0:22:18 > 0:22:23Yes. We have a team which will do the plastering and everything else.
0:22:25 > 0:22:31'They've already paid £190,000 for the flat and plan to spend another £15,000 doing it up.
0:22:31 > 0:22:33'But how much time will they spend on it?'
0:22:33 > 0:22:36It's going to take about four to five weeks.
0:22:36 > 0:22:42But, realistically, we might push it to six or seven weeks to complete the work.
0:22:42 > 0:22:45So six or seven weeks and then out on the market.
0:22:45 > 0:22:49- That's right. - It'll be quite an exciting time for you guys, but also hard work
0:22:49 > 0:22:53- because you have to run your business, as well. - Yes, it will be busy.
0:22:53 > 0:22:59Onwards and upwards for you guys. Lovely to meet you today and good luck with this project.
0:22:59 > 0:23:03- Thank you very much indeed.- Thank you.- Congratulations.- Thank you.
0:23:03 > 0:23:06These boys are doing this flat up to sell on.
0:23:06 > 0:23:09Now, I don't think it'll cause this experienced team any problems.
0:23:09 > 0:23:14However, with the Olympics on the horizon, maybe they'd be better off to hang on to this one,
0:23:14 > 0:23:18because I reckon property prices will be on the rise around here.
0:23:18 > 0:23:22And as it stands, I don't think there'll be a huge amount of profit in this flat.
0:23:22 > 0:23:26Find out what happens later on in the programme.
0:23:27 > 0:23:32'Coming up, this house in Perthshire may need more than just a coat of paint.'
0:23:32 > 0:23:36It's the damage that's been created to the structure that really concerns me.
0:23:37 > 0:23:43'There can't be a lot of work required at this one-bedroom flat in London, can there?'
0:23:43 > 0:23:47I put off most of my jobs to do the jobs in the flat.
0:23:49 > 0:23:53'But first, has Carl cracked it in Kidsgrove?'
0:23:53 > 0:23:56There's still about 40 jobs to do out of 160.
0:24:00 > 0:24:04'Back in Kidsgrove, Stoke-on-Trent, safety officer Carl
0:24:04 > 0:24:08'bought this two-bedroom house for £57,000.
0:24:09 > 0:24:15'He lives across the road, so didn't have far to travel while he was renovating it.'
0:24:15 > 0:24:22- Obviously, it needs quite a lot of work.- It needs extensive work, yes. It's a wreck.
0:24:24 > 0:24:28'Four months later and it's a long way from being finished.
0:24:28 > 0:24:31'But so much better than it was.
0:24:34 > 0:24:38'The exposed bricks really give this house character.
0:24:39 > 0:24:41'The kitchen is still to be installed.
0:24:43 > 0:24:45'And so is the bathroom.
0:24:48 > 0:24:52'But at least I don't think you can call it a wreck any more.'
0:24:52 > 0:24:55It's slightly better than a wreck at the moment.
0:24:55 > 0:24:57It's still an on-going project.
0:24:57 > 0:25:01There's still about 40 jobs to do out of 160.
0:25:01 > 0:25:06But they're quite minor jobs, so we'll get there in the end.
0:25:06 > 0:25:10'What little there was of a kitchen has been ripped out.
0:25:12 > 0:25:15'As has this bathroom.'
0:25:17 > 0:25:22Yeah, before, we had a very dark, tiny bathroom and hallway,
0:25:22 > 0:25:27which was a bit of a waste of time, so we knocked the hallway down
0:25:27 > 0:25:31to make the bathroom much larger.
0:25:31 > 0:25:35We've dry-lined the room and put new ceilings in.
0:25:35 > 0:25:39Made some structural work to the ceilings, improved the strength of it.
0:25:39 > 0:25:42Put an attic hatch in, as well, for access.
0:25:42 > 0:25:47The kitchen lived in this room before. We've moved that into the dining room,
0:25:47 > 0:25:51so now we've got a small kitchen-diner, which has freed up this space as a utility room.
0:25:52 > 0:25:57'To enable Carl to do this, he had to move the back door and window closer to the house
0:25:57 > 0:26:01'so it goes into the utility room rather than the new bathroom.
0:26:03 > 0:26:06'The kitchen hasn't yet been put in the former dining room,
0:26:06 > 0:26:09'but the area has been made ready.
0:26:09 > 0:26:15'As part of that, the floors have been dug up and damp-proofing installed before being replaced.
0:26:16 > 0:26:22'What about upstairs where those huge cracks were evidence that the front of the building was moving?'
0:26:24 > 0:26:28This was the room with the two structural cracks in there.
0:26:28 > 0:26:32We didn't want to cause any further movement,
0:26:32 > 0:26:37so we decided to fit stainless steel spirals
0:26:37 > 0:26:40into the joints.
0:26:40 > 0:26:45We used epoxy and then we put some special construction cement in to consolidate it
0:26:45 > 0:26:49and also some brackets, as well, that we screwed to the wall,
0:26:49 > 0:26:53so I'm confident there'll be no more movement.
0:26:53 > 0:26:57'Thankfully, the second bedroom was in one piece
0:26:57 > 0:27:01'and after being replastered, just needed redecorating.
0:27:05 > 0:27:08'Carl's also replaced the hot water and central heating system
0:27:08 > 0:27:11'with an energy-efficient combi boiler.
0:27:13 > 0:27:17'The original floors have been restored and oiled
0:27:17 > 0:27:19'to give them that authentic look.
0:27:19 > 0:27:23'So, other than getting experts for the total rewiring and plumbing,
0:27:23 > 0:27:26'has Carl been a one-man band?'
0:27:26 > 0:27:31I managed to get my dad to help me, I pulled him out of retirement
0:27:31 > 0:27:35with an increase in beer tokens, so he's been helping me a lot,
0:27:35 > 0:27:38doing the majority of the work in the daytime,
0:27:38 > 0:27:42and I've been helping at weekends and in the evening, as well.
0:27:42 > 0:27:48It's really hard juggling a career and trying to do this in the background.
0:27:48 > 0:27:55'It's never easy doing a full-time job and then coming home and doing, well, another full-time job.
0:27:55 > 0:27:58'But how long has it taken up till now?'
0:27:59 > 0:28:02About 16 weeks at the moment.
0:28:02 > 0:28:05But bearing in mind, it was done through winter.
0:28:05 > 0:28:11Over Christmas, we were working at round about minus-ten. That limits the types of jobs you can do.
0:28:11 > 0:28:17'There are still a few jobs to do, including installing the kitchen and bathroom.
0:28:17 > 0:28:21'Carl thinks that will take another two to three weeks.
0:28:21 > 0:28:24'He originally guestimated that he would spend £18,000
0:28:24 > 0:28:29'on top of the £57,000 he paid for the property. How's that target looking now?'
0:28:29 > 0:28:32It's coming in just under £15,000 at the moment,
0:28:32 > 0:28:36but we've already purchased the kitchen and the bathroom.
0:28:36 > 0:28:41When that's been fitted and it's tiled, there's a bit more labour costs on there,
0:28:41 > 0:28:43it'll probably be just over 15K.
0:28:43 > 0:28:46'To check whether the money's been spent wisely,
0:28:46 > 0:28:49'we invited two local estate agents around to take a look.'
0:28:50 > 0:28:53About the property, I do like the exposed brick.
0:28:53 > 0:28:55The original features have been kept.
0:28:55 > 0:28:58However, it's been brought up to a modern standard,
0:28:58 > 0:29:00new central heating's been installed.
0:29:00 > 0:29:03What I like about the property is that the owner's kept
0:29:03 > 0:29:07a lot of original features, which is key to the property.
0:29:07 > 0:29:09I also like the finish of the property.
0:29:09 > 0:29:14The decorating is to a very high standard and the fixtures and fittings will be top spec, too.
0:29:16 > 0:29:19'Once finished, would it be best to rent it out or sell it on?'
0:29:19 > 0:29:24The rental market's very buoyant in Kidsgrove at the moment.
0:29:24 > 0:29:27We are few and far between with supply and demand,
0:29:27 > 0:29:29but also for a terraced cottage in Kidsgrove,
0:29:29 > 0:29:32close to the town centre, it would sell very well.
0:29:32 > 0:29:36It would be a difficult property to sell in the current climate,
0:29:36 > 0:29:39due to it being aimed at a first-time buyer.
0:29:39 > 0:29:44Although, an older couple that are perhaps downsizing may be interested in the property.
0:29:44 > 0:29:49In the current market, I would say rental would be the best option.
0:29:49 > 0:29:55'So, how much could Carl expect to get if he decided to rent this property out?'
0:29:55 > 0:29:59For a rental figure for the property, I would recommend £450 per calendar month.
0:29:59 > 0:30:04I would recommend a rental price of £475 per calendar month.
0:30:04 > 0:30:07Oh, right. 475 is quite interesting.
0:30:07 > 0:30:12I'd anticipated about 450. So that's positive, yeah.
0:30:12 > 0:30:18'Carl reckons his total spend here will be just over £73,000 plus the usual fees and expenses.
0:30:18 > 0:30:22'Could there be any profit here if he decided to sell?'
0:30:22 > 0:30:25The resale value for the property, once completed,
0:30:25 > 0:30:28I would recommend £90,000 to £95,000.
0:30:28 > 0:30:34I would recommend a valuation of £79,950.
0:30:34 > 0:30:38Yeah, I think the lower estimate's about right at the moment,
0:30:38 > 0:30:41cos the market is still quite low at the moment.
0:30:41 > 0:30:46But it doesn't really bother me, the value, cos it is a long-term investment.
0:30:46 > 0:30:52'Once this is finished, will Carl be rushing out to get another one or has he got other plans?'
0:30:52 > 0:30:57I'm going to have a long, long rest and hopefully start to reap the benefits
0:30:57 > 0:31:01and get some income from all the hard work and the investment I've put into it.
0:31:01 > 0:31:05'As plans go, that's not bad.
0:31:10 > 0:31:13'Today, I'm in beautiful Perthshire,
0:31:13 > 0:31:15'gateway to the Scottish Highlands.
0:31:15 > 0:31:20'I've come to a small market town called Coupar Angus on the River Isla.
0:31:20 > 0:31:24'It's a pretty place that had a thriving textile industry in the 19th century,
0:31:24 > 0:31:32'so wealthy industrialists moved here, built grand, ornate houses and settled in the town.
0:31:32 > 0:31:37'Thankfully, the architecture still survives today, making it a very attractive place indeed.'
0:31:41 > 0:31:44I'm here to see a property that had a guide price of £45,000 to £50,0000.
0:31:44 > 0:31:47What does it look like?
0:31:49 > 0:31:50Oh, dear.
0:31:52 > 0:31:57'As first impressions go, this would be, well, erm, a bad one.
0:32:03 > 0:32:06'I can't even access the property from the front.
0:32:06 > 0:32:11'To get inside, I have to go round the back. Hopefully, things will improve there.
0:32:15 > 0:32:19'It's not looking great, but let's not right it off yet.
0:32:19 > 0:32:24'It may just need a bit of good old-fashioned elbow grease. Let's go in and take a look.'
0:32:26 > 0:32:28So what's it like inside?
0:32:31 > 0:32:36Ah. Well, as you can see, severely fire-damaged.
0:32:36 > 0:32:40The electrics are all over the place. I'm not even going to touch that.
0:32:40 > 0:32:43The ceiling's come down. There's soot all over the walls.
0:32:43 > 0:32:46Intrinsically, this is a huge kitchen.
0:32:46 > 0:32:49It's going to be one of those properties
0:32:49 > 0:32:54where you need to, well, use your imagination.
0:32:54 > 0:32:58# Just my imagination, just my imagination
0:32:58 > 0:33:01# It was
0:33:01 > 0:33:05'Yes, and it's a good job I've got an active imagination
0:33:05 > 0:33:10'because I think we're going to need a bit more than that elbow grease I mentioned earlier.'
0:33:10 > 0:33:13I mean, this is the sort of property you should really look around
0:33:13 > 0:33:17with somebody who knows what they're doing if you don't know yourself.
0:33:17 > 0:33:22It's not the superficial damage I'm worried about, the soot and dirt you can get rid of,
0:33:22 > 0:33:26it's the damage that's been created to the structure that really concerns me.
0:33:26 > 0:33:29And that damage is not only caused by the fire,
0:33:29 > 0:33:33but maybe when the fire brigade came to put out the fire, flooding this place with water,
0:33:33 > 0:33:36it's the water damage, as well. Hm.
0:33:36 > 0:33:40Definitely not one for the unwary. Now, I'll take a look upstairs.
0:33:42 > 0:33:46Er, judging by that, I don't think I will.
0:33:46 > 0:33:53'I'd love to show you round upstairs, but those joists really don't look too safe to me.
0:33:53 > 0:33:57'So you'll have to take my word for it that there are three bedrooms and a bathroom up there.
0:33:57 > 0:34:01'On the plus side, this could be a great family garden
0:34:01 > 0:34:04'and Coupar Angus is a desirable place to live.
0:34:04 > 0:34:10'So although this house isn't looking quite so hot anymore, it does have potential.
0:34:10 > 0:34:13'But just in case my imagination's running away,
0:34:13 > 0:34:16'I invited a local estate agent to tell me more
0:34:16 > 0:34:18'about the house and area.'
0:34:19 > 0:34:22Small, rural town, population of about 2,000.
0:34:22 > 0:34:26We're only about 13 miles from the bigger town of Perth,
0:34:26 > 0:34:29where you can get rail links to Aberdeen,
0:34:29 > 0:34:32Edinburgh, Glasgow, bigger cities.
0:34:32 > 0:34:35Coupar Angus itself has all local amenities,
0:34:35 > 0:34:39grocery stores, convenience stores,
0:34:39 > 0:34:45primary school and the local high school's only about six miles away in Blairgowrie.
0:34:45 > 0:34:49'The area sounds great, but what does she think about the house?'
0:34:49 > 0:34:53It's obviously been badly fire-damaged, water-damaged.
0:34:53 > 0:34:58It does require completely renovating, everything from new walls,
0:34:58 > 0:35:01flooring, just everything, really.
0:35:02 > 0:35:06'The property had a guide price of between £45,000 and £50,000.
0:35:06 > 0:35:12'So, once everything's been done, how much could it sell for on the open market?'
0:35:12 > 0:35:18When renovated, I would say you would be looking to achieve perhaps £95,000 to £100,000.
0:35:21 > 0:35:26'What could the new owner expect to get if they rented it out after doing it up?'
0:35:26 > 0:35:32You would be looking to achieve between £450 and £475 per calendar month.
0:35:32 > 0:35:35Well, obviously, quite a lot of work to do to sort this place out,
0:35:35 > 0:35:39but it intrinsically is a good little house and I think, once done up,
0:35:39 > 0:35:42would be a fantastic rental opportunity or a lovely place to live.
0:35:42 > 0:35:45Let's see who went for it when it went under the hammer.
0:35:49 > 0:35:55Lot 24. What are we going to say for that? Somebody start me off at £40,000.
0:35:55 > 0:35:59Getting a bit of movement in the room. I've got a 40 from a proxy bid.
0:35:59 > 0:36:03At £40,000. Is there 42 anywhere in the room? 42.
0:36:03 > 0:36:05Can I have a 44 from you? 44.
0:36:05 > 0:36:08- 46 on the proxy?- Yeah. - 46 on the proxy.
0:36:08 > 0:36:1248 at the back there. 48.
0:36:12 > 0:36:1450. 52?
0:36:14 > 0:36:1852. 54. 56?
0:36:18 > 0:36:20He's having a think about it. He's shaking his head.
0:36:20 > 0:36:23So it's down at the front here at £54,000.
0:36:23 > 0:36:27I'm going to sell at 54 if that's the best I can do. £54,000.
0:36:27 > 0:36:31Oh, he's back in. You first, OK. 55.
0:36:31 > 0:36:3456, new bidder. 57.
0:36:34 > 0:36:3758 anywhere? Any other bidders?
0:36:37 > 0:36:42Are we all done at £57,000?
0:36:42 > 0:36:44Going once,
0:36:44 > 0:36:46twice, third and final time.
0:36:46 > 0:36:50£57,000. Gentleman in the front row in the green shirt.
0:36:50 > 0:36:56'The winning bid of £57,000 came from father-of-two Nick.
0:36:56 > 0:37:01'He's been in the building trade since doing an apprenticeship as a decorator when he first left school.
0:37:01 > 0:37:08'Nick and his wife are originally from Kent and moved up to Scotland about four years ago.
0:37:08 > 0:37:12'I met with him to hear about their plans for this fire-damaged property.'
0:37:12 > 0:37:15Nick, congratulations. Good to meet you.
0:37:15 > 0:37:19- Bit of a mess. - Well, yeah, it is a bit of a mess.
0:37:19 > 0:37:22- So why did you want to buy it? - Because the mess is all superficial,
0:37:22 > 0:37:25I'm a decorator and I'm sure I can make it look nice.
0:37:25 > 0:37:30You're a decorator. Fantastic! How are you going to set about sorting this place out?
0:37:30 > 0:37:33Of course, we need some new plasterboard, a lot of clearing out
0:37:33 > 0:37:38and a few coats of paint and I think it'll come up very nicely.
0:37:38 > 0:37:40'Well, I do like an optimist.
0:37:40 > 0:37:44'But what did he do to check out the property before he parted with his money?'
0:37:44 > 0:37:48Not a lot, really. I viewed it before the auction, I had a good look round.
0:37:48 > 0:37:52I think I can see all the problems I'm going to encounter
0:37:52 > 0:37:55and I can tackle most of them myself.
0:37:55 > 0:37:59Ones I can't would be replacing the windows and doors
0:37:59 > 0:38:03and the electrics. For them, I'll just use local contractors.
0:38:03 > 0:38:06- So it's not fazing you at all, then? - No, not yet.
0:38:06 > 0:38:10- Time will tell. - It probably put a lot of people off.
0:38:10 > 0:38:15I think so, yeah. When my wife saw it, I think she was a bit put off, too.
0:38:15 > 0:38:19'I'm not surprised! With all the choice of properties you can buy at auctions,
0:38:19 > 0:38:24'why on earth would you go for one that was almost destroyed by fire?
0:38:27 > 0:38:29'Maybe it was bought in the heat of the moment.'
0:38:31 > 0:38:34Well, it's what you see, isn't it?
0:38:35 > 0:38:40There's nothing really hidden. It's a good size three-bedroom with an upstairs bathroom,
0:38:40 > 0:38:44front and rear garden, off-road parking, nice area, local school,
0:38:44 > 0:38:48near a nice little local town, within walking distance of everything.
0:38:48 > 0:38:51To me, it just seemed to tick all the boxes.
0:38:51 > 0:38:55Also, it's something that I can add value to by repairing all the damage.
0:38:55 > 0:38:59- What plans have you got for the house?- Right, the plan.
0:38:59 > 0:39:04The first thing I want to do is make it secure, so I'm going to have the windows and doors changed.
0:39:04 > 0:39:07There's some debate as to whether I'm going to change all the windows
0:39:07 > 0:39:10or just the ones that have been damaged by the fire.
0:39:10 > 0:39:14Some of them, just the glass is broken, but others are warped by the heat.
0:39:14 > 0:39:20So I'm going to get some quotes from a local glazing firm
0:39:20 > 0:39:24and then see what they come in at and make a decision from there.
0:39:24 > 0:39:29And the other important thing is to get the power back on so we can carry out the work.
0:39:29 > 0:39:32Again, I'm going to use a local contractor for that.
0:39:32 > 0:39:36And after that, it's just work through it room by room, top down.
0:39:36 > 0:39:39'That seems like a pretty sound plan.
0:39:39 > 0:39:43'Once he's started, and assuming he doesn't encounter any structural problems,
0:39:43 > 0:39:46'how long does he reckon it'll take?'
0:39:46 > 0:39:50I'd like to think that I can start it within the next two months.
0:39:50 > 0:39:53I'm working on a project now that I'm going to finish soon
0:39:53 > 0:39:57and then it's all hands to the pump on this one. I've just sort of said a week a room.
0:39:57 > 0:40:02Three bedrooms, so three upstairs, three down. Six weeks, eight weeks, something like that.
0:40:02 > 0:40:08'Nick bought this house to rent out and has already paid £57,000 at auction for it.
0:40:08 > 0:40:14'He hopes to do most of the work himself, but how much will he have to spend to bring it up to standard?'
0:40:15 > 0:40:19The budget will be somewhere between what I paid for the property
0:40:19 > 0:40:23and the finished value, with a small profit, hopefully, for me.
0:40:23 > 0:40:27I think £20,000 should have it finished.
0:40:27 > 0:40:33- Once you've done all that, any idea what it might be worth?- I think it'll be worth close to £100,000.
0:40:33 > 0:40:36Somewhere between £90,000 and £100,000.
0:40:36 > 0:40:41I think it would rent somewhere between £450 and £500 per calendar month.
0:40:41 > 0:40:45'Ah, well done, that's almost exactly the same as the experts told us.
0:40:45 > 0:40:50'I know he's very confident, but does he know what he's letting himself in for?'
0:40:50 > 0:40:54- What do you think is going to be the biggest challenge? - You've stumped me there.
0:40:54 > 0:40:58There's no big challenges here. This is all straightforward and easy.
0:40:58 > 0:41:02- The biggest challenge is going to be finding a good tenant. - Good luck with it all.
0:41:02 > 0:41:05Congratulations. I look forward to seeing how you get on.
0:41:07 > 0:41:12So, Nick is not fazed by a property that's in a state that I'm sure would've put a lot of people off.
0:41:12 > 0:41:16But can he sort it out in just one week per room?
0:41:16 > 0:41:21Seems like a bit of a tall order to me. You can find out how he gets on later in the show.
0:41:24 > 0:41:28As you know, the best laid plans can go horribly wrong.
0:41:28 > 0:41:34- So have today's schemes and plans gone well or have they gone awry? - Let's find out.
0:41:36 > 0:41:41'Time to return to Bow in East London where this Victorian one-bedroom flat
0:41:41 > 0:41:44'was bought at auction for £190,000.
0:41:44 > 0:41:47'Its new owners are Colm and his business partner Robert.
0:41:47 > 0:41:55'As Colm was just about to become a new dad, most of the work on the project landed on Robert's plate.'
0:41:55 > 0:41:58- Are you prepared for all the hard work?- Yes.
0:41:58 > 0:42:01I've been involved in refurbishments before
0:42:01 > 0:42:04and I think I can cope with this flat, as well.
0:42:05 > 0:42:10'Two months later, Colm and his partner Susan had a new baby girl,
0:42:10 > 0:42:12'the now eight week old Ella.
0:42:12 > 0:42:17'So we go from one new life to something that's been given a whole new lease of life.
0:42:20 > 0:42:22'And what a difference!
0:42:22 > 0:42:25'The whole place is brighter and much more appealing.
0:42:25 > 0:42:30'Remember that front room with a separate kitchen? Well, the walls have been ripped out
0:42:30 > 0:42:34'and opened up a whole new kitchen-dining room
0:42:34 > 0:42:36'with brand new appliances and units.'
0:42:36 > 0:42:41Quite a lot has changed in this room. If you remember, we had our partition wall here
0:42:41 > 0:42:45and we removed the wall to create a larger living space
0:42:45 > 0:42:50and put the kitchen against one wall with integrated appliances.
0:42:50 > 0:42:53It's a good, functional room
0:42:53 > 0:42:55and a nice, bright living space.
0:42:57 > 0:43:01'Even the climb up those stairs to get into the flat has become more appealing,
0:43:01 > 0:43:03'with a stylish glass banister.
0:43:07 > 0:43:12'And the modern look continues in the striking new bathroom.'
0:43:13 > 0:43:16Well, we moved the bath to a different place.
0:43:16 > 0:43:20Before, it was under the window and the window was starting to rot.
0:43:20 > 0:43:26I can say I'm proud of it. It is much better than old times.
0:43:27 > 0:43:30And I think the new owner will have lots of fun here.
0:43:30 > 0:43:35'The renovation work was all designed by Robert himself.
0:43:35 > 0:43:39'It was built by him and his team, with Colm doing some labouring
0:43:39 > 0:43:43between looking after his new baby and overseeing their other projects.
0:43:43 > 0:43:48I put off most of my jobs to do the job in the flat.
0:43:48 > 0:43:52I've been here eight hours every day.
0:43:52 > 0:43:54When I was able to be here, of course.
0:43:54 > 0:44:00Colm spent most of the time on the road finding the jobs and the customers.
0:44:00 > 0:44:03So I tried to keep the plumbing business going
0:44:03 > 0:44:06and Robert stayed on site.
0:44:06 > 0:44:09Just trying to balance the two, really.
0:44:10 > 0:44:15'Their original timescale for the work was six to seven weeks, but it's been nearer eight weeks
0:44:15 > 0:44:20'and there are still little jobs left to do. So what's been the hold up?'
0:44:20 > 0:44:24Just waiting for materials to arrive once they'd been ordered.
0:44:24 > 0:44:26The kitchen took a while to be delivered.
0:44:26 > 0:44:30The glass took longer than we expected.
0:44:30 > 0:44:34That was the main reason for the overrun. Just waiting for materials.
0:44:35 > 0:44:40'But if you're going to renovate to a high standard like Colm and Robert have done here,
0:44:40 > 0:44:44'you have to accept that there may be delays along the way.
0:44:44 > 0:44:48'But have they stuck to their original budget of £15,000?'
0:44:48 > 0:44:51The project may have been 15 to 20.
0:44:51 > 0:44:55However, with the fees incurred for buying and selling and agency costs,
0:44:55 > 0:44:59you're looking at more like 25.
0:44:59 > 0:45:03But I don't think the budget went too bad. 15, maybe five overspent.
0:45:03 > 0:45:06Nothing too severe.
0:45:09 > 0:45:14'After paying £190,000 for the property plus the £25,000 for the work,
0:45:14 > 0:45:17'their total spend has been £215,000,
0:45:17 > 0:45:20'including their fees and expenses.
0:45:22 > 0:45:26'The boys had always planned to resell the house,
0:45:26 > 0:45:29'so how much value have they added to it?
0:45:29 > 0:45:33'We asked two local estate agents for their opinions.'
0:45:33 > 0:45:36I think it's amazing. I love the oak flooring,
0:45:36 > 0:45:38the designer fitted kitchen,
0:45:38 > 0:45:43all the appliances are integrated and it has the wow factor.
0:45:43 > 0:45:47I think the owners have done very well developing the apartment.
0:45:47 > 0:45:49They certainly have modernised it
0:45:49 > 0:45:54and retained a lot of the neutral features that they should've kept.
0:45:54 > 0:45:58'But what about the open-plan kitchen-dining room?
0:45:58 > 0:46:03Opening up the living room and the kitchen has certainly added quite a bit more room
0:46:03 > 0:46:06and it makes the space a lot more airy.
0:46:06 > 0:46:13It's not everybody's cup of tea. Some buyers are still hoping for a separate kitchen.
0:46:13 > 0:46:16But, overall, I think they've done quite well by opening up.
0:46:16 > 0:46:19It certainly looks much larger now.
0:46:19 > 0:46:24I think the work they've done is ideal. It's high ceilings, new carpets, new heating,
0:46:24 > 0:46:27designer kitchen, the bathroom is absolutely amazing.
0:46:27 > 0:46:30Everything about it is superb. This property has the X factor.
0:46:32 > 0:46:36'So how much could it be worth if it was put on the rental market?'
0:46:36 > 0:46:42I think one would pay between £900 and £1,000 per month to rent this property.
0:46:42 > 0:46:47I think the property would probably rent between £1,000 and £1,100 per calendar month.
0:46:47 > 0:46:54I think that's what we expected, in the region of that, £900 to £1,100, something in that region.
0:46:56 > 0:47:00'And although that top-end estimate of £1,100
0:47:00 > 0:47:04'could make a good return yield of around six percent,
0:47:04 > 0:47:08'the boys are set on selling the flat. So what could it resell for?
0:47:08 > 0:47:13'Remember, it needs to be over £215,000 for them to see any profit.'
0:47:15 > 0:47:19We would put the property on the market for £240,000.
0:47:19 > 0:47:23I reckon, now, roughly between £245,000 and £250,000.
0:47:23 > 0:47:25That's a very good valuation.
0:47:25 > 0:47:30We have received and accepted and offer on the property
0:47:30 > 0:47:35in the region of what's been estimated by the agents,
0:47:35 > 0:47:38so we're pretty happy with those estimations.
0:47:41 > 0:47:46'With a potential pre-tax profit of between £25,000 and £35,000
0:47:46 > 0:47:50'based on the experts' estimates, no wonder they're happy.
0:47:50 > 0:47:55'But now this project's almost finished and the boys have had time to reflect,
0:47:55 > 0:47:58'it sounds like they'll be concentrating on their day jobs
0:47:58 > 0:48:01'rather than making a career out of property developing.'
0:48:01 > 0:48:06I don't think it'll be a career to us. I think we'll stick to the plumbing and electrics.
0:48:06 > 0:48:11But it's something to do on the side. It's more of a hobby than a career.
0:48:16 > 0:48:19'We're back in Coupar Angus, Perthshire,
0:48:19 > 0:48:23'where professional decorator and father-of-two Nick and his wife Emma
0:48:23 > 0:48:28'bought this fire-damaged three-bedroom terraced house for £57,000.
0:48:28 > 0:48:32'When they got it, it was uninhabitable.
0:48:32 > 0:48:35'Fire damage meant that you couldn't even get upstairs.
0:48:35 > 0:48:38'You could say it was in a bit of a state.'
0:48:40 > 0:48:44- Well, yeah, it is a bit of a mess. - So why did you want to buy it?
0:48:44 > 0:48:49The mess is all superficial, I'm a decorator, I'm sure I can make it look nice.
0:48:50 > 0:48:53'Four months later, let's see if this house has risen...
0:48:53 > 0:48:58# Just like a phoenix from the flames
0:48:58 > 0:49:02'Well, that's quite a transformation. The kitchen's not yet finished
0:49:02 > 0:49:04'but it's certainly getting there.
0:49:06 > 0:49:11'So, when a house is in such poor condition, where do you start?'
0:49:11 > 0:49:14Well, the first thing we had to do was to get rid of all the rubbish,
0:49:14 > 0:49:18all the damaged plasterboard, and clean the attic out,
0:49:18 > 0:49:23and we found an awful lot more rubbish underneath the floors which we cleared out, as well.
0:49:23 > 0:49:27And once we got it all clean, we could start putting things back.
0:49:27 > 0:49:31We started by having the house rewired,
0:49:31 > 0:49:35repairing and renewing the plumbing where necessary
0:49:35 > 0:49:38and replacing all the ceilings, and then from there,
0:49:38 > 0:49:41we progressed with the decorating and the new doors
0:49:41 > 0:49:44and facings and skirting boards.
0:49:44 > 0:49:49'Last time we were here, we couldn't go upstairs because of concerns about the floors there.
0:49:49 > 0:49:54'When Nick finally got up there, did he find it needed to be completed ripped out?
0:49:54 > 0:50:00Upstairs was mainly damaged by smoke and water from the fire.
0:50:00 > 0:50:03There was some concern that the floors were damaged
0:50:03 > 0:50:08and on further investigation, the only area that was really affected was directly above the fire
0:50:08 > 0:50:13in the back bedroom, which we repaired and, from then on,
0:50:13 > 0:50:18all we had to do was to replace all the ceilings and redecorate.
0:50:18 > 0:50:23I kept it all neutral, just magnolia and white, and it looks quite clean and fresh.
0:50:23 > 0:50:26'The three bedrooms are looking great
0:50:26 > 0:50:30'and any reminders of the fire damage have vanished.
0:50:30 > 0:50:33'As with the rest of the house, the windows and doors have been replaced.
0:50:38 > 0:50:44'The bathroom, even though it's not yet quite finished, looks to be of a good standard.
0:50:47 > 0:50:54'Back downstairs, the end of the old kitchen has become a small entrance hall with a little cloakroom in it.'
0:50:54 > 0:50:58Well, the kitchen, as you see, I've got to finish off.
0:50:58 > 0:51:00It needs worktops, redecorating
0:51:00 > 0:51:04and coving round the top.
0:51:04 > 0:51:10The appliances, I'm not actually going to supply them as yet. We'll wait and see what happens.
0:51:10 > 0:51:14If the tenant requires them, then I will consider it at the time.
0:51:14 > 0:51:20'The house isn't quite finished yet, but the only major job remaining is the kitchen.
0:51:20 > 0:51:22'The rest is purely cosmetic.
0:51:24 > 0:51:27'Nick originally said it would take a week per room,
0:51:27 > 0:51:31'which, counting the hall and landing as rooms, would be eight weeks.
0:51:31 > 0:51:34'So has his rule of thumb been accurate?'
0:51:35 > 0:51:38Oh, my week per room estimate? Hm.
0:51:38 > 0:51:41Er, I don't know about that.
0:51:41 > 0:51:44I mean, it's very difficult to gauge things when you start
0:51:44 > 0:51:47because the plan's not totally formed.
0:51:47 > 0:51:54We've done extra work, like adding in the downstairs loo and the lobby.
0:51:54 > 0:51:58And I wasn't sure at the outset whether I would need a complete rewire.
0:51:58 > 0:52:03But it turned out to be more cost-effective to do the rewire but it took longer.
0:52:03 > 0:52:07So the week a room was slightly out. But not by much!
0:52:07 > 0:52:10'Sounds like Nick's avoiding the question.
0:52:10 > 0:52:15'If it hasn't taken eight weeks, then how long has it taken?'
0:52:15 > 0:52:20It's actually taken me probably, erm, three months to get to here,
0:52:20 > 0:52:22but when time allows.
0:52:22 > 0:52:25I haven't been at it five days a week.
0:52:25 > 0:52:28I've had an electrician and a joiner helping
0:52:28 > 0:52:33and a couple of friends have come down and given me a hand with the clearing out of the rubbish.
0:52:33 > 0:52:36But we've done pretty well. We're almost there.
0:52:36 > 0:52:39'Pretty well? I think they've done a marvellous job.
0:52:39 > 0:52:44'They've transformed a burned-out shell into a really lovely family home.
0:52:48 > 0:52:55'Nick originally paid £57,000 for this property, so how much has it cost to get it to this condition?'
0:52:55 > 0:53:01Well, I haven't actually totted up everything, but I started out with a set amount in the bank
0:53:01 > 0:53:05of £20,000 and we're just about there.
0:53:05 > 0:53:08So, give or take a few, it's around 20.
0:53:08 > 0:53:14The total spend at the end will come in around about £80,000, give or take a little bit.
0:53:19 > 0:53:23'Just to make sure what Nick's done isn't all smoke and mirrors,
0:53:23 > 0:53:26'we've invited two local property experts around to have a look
0:53:26 > 0:53:29'and tell us what they think of the job so far.'
0:53:32 > 0:53:35My first impressions are that he's done a lovely job
0:53:35 > 0:53:39in refurbishing this. Bearing in mind that it was extensively
0:53:39 > 0:53:44smoke-damaged and fire-damaged before the property was sold,
0:53:44 > 0:53:48it's come up really nicely and I think he's done an excellent job.
0:53:48 > 0:53:54All traces of the smoke damage have gone, so it's a nice canvas for a family to move into.
0:53:54 > 0:53:56The standard of finish looks very good.
0:53:56 > 0:53:59They've clearly spent some money on the property
0:53:59 > 0:54:04and I think it would get a good review from anybody coming to see the house.
0:54:04 > 0:54:07The property has been finished to a good standard.
0:54:07 > 0:54:10He's made good use of the space in the kitchen,
0:54:10 > 0:54:14incorporated a porch and a ground-floor toilet
0:54:14 > 0:54:18and it's just neutral decor throughout. He's made a pretty good job.
0:54:18 > 0:54:24Handy from the town itself and it's only about 15 miles from Perth, so it's an easy commute.
0:54:24 > 0:54:29There's facilities here, better ones in Perth and also in Dundee, so it's very well located.
0:54:29 > 0:54:32'Praise indeed, then.
0:54:33 > 0:54:36'Nick originally bought the property to let out
0:54:36 > 0:54:40'and hopes the total spend when finished will be £80,000.
0:54:40 > 0:54:44'So what could he expect to get in rental income?'
0:54:46 > 0:54:52I believe this property could fetch between £450 and £475 per calendar month.
0:54:52 > 0:54:59I would expect the rental for this property to be between £600 and £700 per calendar month.
0:54:59 > 0:55:03Wow. That sounds pretty good. £600 to £700 would be a really good yield.
0:55:03 > 0:55:07The other one, I think, possibly a little on the low side.
0:55:08 > 0:55:11When I've looked locally at prices,
0:55:11 > 0:55:15I would've been happy with £500 to £550,
0:55:15 > 0:55:20but £600 to £700 would be far better, if that's possible.
0:55:21 > 0:55:26'If he does get between £600 and £700 per calendar month,
0:55:26 > 0:55:29'that's a yield of between 9 and 10.5 percent.
0:55:29 > 0:55:32'As Nick says, that's very healthy.
0:55:32 > 0:55:36'If he decides to sell, how much does this sort of property go for around here?
0:55:36 > 0:55:40'Remember, Nick's planning a total spend of around £80,000,
0:55:40 > 0:55:44'including the original purchase price of £57,000.'
0:55:44 > 0:55:46If the property was to be placed on the market,
0:55:46 > 0:55:50I would expect it to achieve between £90,000 and £100,000.
0:55:50 > 0:55:55I believe this property could fetch between £95,000 and £100,000.
0:55:55 > 0:55:58OK, yeah, that's a fair spread.
0:55:58 > 0:56:01I think any profit in the current market is a good one.
0:56:01 > 0:56:07'By the look of that smile, Nick's pleased with the way this project has turned out.
0:56:07 > 0:56:10'And so he should be. He's done a really great job.'
0:56:11 > 0:56:15'Has he got any words of wisdom for others who fancy doing up a house?'
0:56:15 > 0:56:17Always err on the side of caution.
0:56:17 > 0:56:22There's bound to be things that you hadn't seen, especially with a property like this.
0:56:22 > 0:56:24This was quite bad,
0:56:24 > 0:56:28from a point of view of putting it back into this condition,
0:56:28 > 0:56:30and you've just got to be slightly wary.
0:56:30 > 0:56:36If you've got no experience, then why not try and get some experience? Work with a builder.
0:56:38 > 0:56:43We hope we've given you some ideas and tips should you decide to venture into the auction room.
0:56:43 > 0:56:46But even if not, we hope you'll join us as we follow more people
0:56:46 > 0:56:48who've bought their homes under the hammer.
0:56:48 > 0:56:51- We'll see you next time.- Goodbye.
0:56:52 > 0:56:56Subtitles by Red Bee Media Ltd
0:56:56 > 0:57:00E-mail subtitling@bbc.co.uk
0:57:00 > 0:57:00.