0:00:02 > 0:00:05Despite the doom and gloom, investing in property
0:00:05 > 0:00:07is still a good thing to do.
0:00:07 > 0:00:09But make sure you do your homework.
0:00:09 > 0:00:13Buying under the hammer can be a really good bet.
0:00:38 > 0:00:44If you're looking for variety and good value, the auctions could be for you.
0:00:44 > 0:00:48Here are our properties that lured our buyers on today's show.
0:00:49 > 0:00:54'This old store in Dorset is certainly a blank canvas.'
0:00:54 > 0:00:58We've got one big room with a mezzanine floor above it.
0:00:59 > 0:01:04'In Hampshire, this three-bedroom detached house has made me nostalgic.'
0:01:04 > 0:01:09It so reminds me of my old house. It's bizarre.
0:01:09 > 0:01:15'And a commercial property in Kent with a good frontage, a kitchen
0:01:15 > 0:01:17'and a flat upstairs.'
0:01:17 > 0:01:20It's ticking a few boxes.
0:01:21 > 0:01:24'All have been sold at auction.
0:01:24 > 0:01:29'We'll find out who bought them when they went under the hammer.'
0:01:31 > 0:01:37This is the pretty market town of Beaminster, north of Bridport in Dorset.
0:01:37 > 0:01:43It's a cute place, partly because it missed out on a railway station,
0:01:43 > 0:01:46so it's pretty much remained as it was.
0:01:46 > 0:01:50Lots of individual little shops. It's lovely.
0:01:50 > 0:01:55As a result, properties round here are very sought-after.
0:01:55 > 0:01:59'It's no surprise that the town centre's a conservation area,
0:01:59 > 0:02:02'as there are 200 listed buildings.
0:02:02 > 0:02:08'It's a perfect corner of England that is important to preserve.'
0:02:10 > 0:02:14This is Shadrack Street, just off the high street in Beaminster,
0:02:14 > 0:02:18which is a good thing as the main road is quite busy.
0:02:18 > 0:02:24A great start cos the property is built out of this gorgeous stone,
0:02:24 > 0:02:26particular to this part of Dorset.
0:02:26 > 0:02:31What was on offer? It's this former store with planning permission
0:02:31 > 0:02:34for conversion to a two-bedroom dwelling.
0:02:34 > 0:02:37Guide price 115,000 quid.
0:02:40 > 0:02:44So, it's a former store room so we shouldn't expect too much.
0:02:44 > 0:02:49We've got this one big room with this mezzanine floor above it.
0:02:49 > 0:02:52Concrete floor.
0:02:52 > 0:02:54It's extremely sloping.
0:02:54 > 0:03:00Digging-out to do there, especially as the garden comes quite high up.
0:03:00 > 0:03:02Which throws up issues with damp.
0:03:02 > 0:03:07So you have to consider things like the damp, digging out the floors,
0:03:07 > 0:03:11putting in services - sewerage, that kind of thing.
0:03:11 > 0:03:15It's not for the faint-hearted but you've got a reasonable canvas
0:03:15 > 0:03:18on which to paint an interesting project.
0:03:23 > 0:03:27'Taking on this conversion might be a tough prospect,
0:03:27 > 0:03:30'but rewards could be worthwhile.
0:03:30 > 0:03:36'The end wall is breeze blocks, which suggests it was larger,
0:03:36 > 0:03:39'but the stone walls are well preserved
0:03:39 > 0:03:42'so it'll be possible to keep some character.
0:03:42 > 0:03:46'It'll be interesting to see if a two-bed dwelling can be fitted.
0:03:46 > 0:03:48'It might be a bit of a squeeze.'
0:03:48 > 0:03:53At the rear, you get a feeling of what you're getting into.
0:03:53 > 0:03:56The property's sandwiched between properties.
0:03:56 > 0:03:59From over there to that skylight.
0:03:59 > 0:04:03The planning permission includes raising the roof by a metre,
0:04:03 > 0:04:05which is very important.
0:04:05 > 0:04:08Especially for getting that second storey.
0:04:08 > 0:04:15It's interesting that was passed because this is a Grade II listed property.
0:04:15 > 0:04:17I wouldn't be that excited
0:04:17 > 0:04:21if it wasn't for the fact that it comes with this gorgeous garden,
0:04:21 > 0:04:25with views to the church and the open fields beyond.
0:04:25 > 0:04:27Glorious.
0:04:32 > 0:04:37'This really has the quaintness of an English country garden.
0:04:37 > 0:04:41'It's the jewel in this property's crown, and unusual to find
0:04:41 > 0:04:43'in a town-centre location.
0:04:43 > 0:04:49'In my opinion, it's what makes this former store worthy of a top-class conversion.
0:04:49 > 0:04:54'But maybe I'm looking at it with rose-tinted glasses?
0:04:54 > 0:04:58'The guide price was £115,000. I asked a local estate agent
0:04:58 > 0:05:02'to find out what she thought of the place.'
0:05:02 > 0:05:04We always get a lot of interest
0:05:04 > 0:05:08in our old character properties in Beaminster.
0:05:08 > 0:05:11Whether in beautiful condition,
0:05:11 > 0:05:16or whether they've got potential, they always create a lot of demand.
0:05:16 > 0:05:22'So far, so good, but there's one big drawback to the potential of this property.'
0:05:22 > 0:05:24You've got limited parking,
0:05:24 > 0:05:29the price you pay for being in a character part of town.
0:05:29 > 0:05:34We've got on-street parking, public car parks within reach,
0:05:34 > 0:05:37it's just not as convenient as having a drive or garage.
0:05:37 > 0:05:43'It might put investors off, despite the charm of the town centre.
0:05:43 > 0:05:50'If a top-rate conversion was done, what could it expect to fetch?'
0:05:50 > 0:05:56A two-bedroom cottage for sale in this area, a stone Grade II listed pretty cottage,
0:05:56 > 0:05:59you're looking at around £250,000.
0:05:59 > 0:06:05And we usually think in terms of around the £700 mark, per month.
0:06:08 > 0:06:10A great opportunity for somebody.
0:06:10 > 0:06:17Not without issues - parking, the conservation area, a listed building.
0:06:17 > 0:06:24But just look around. I'm sure someone was captivated by the potential when it went to auction.
0:06:29 > 0:06:34Our guide is £115,000. Would someone put us straight in at 115,000?
0:06:36 > 0:06:38Thank you. 115,000.
0:06:38 > 0:06:42115 to the front row, or second row. At 115.
0:06:42 > 0:06:47115. I'll go two and then up to 20, if I may.
0:06:47 > 0:06:48117.
0:06:48 > 0:06:50120.
0:06:50 > 0:06:52122.
0:06:52 > 0:06:54124. 125?
0:06:54 > 0:06:57125. At 125.
0:06:57 > 0:06:59126?
0:06:59 > 0:07:01126.
0:07:01 > 0:07:03127.
0:07:03 > 0:07:07127. 128. 128.
0:07:07 > 0:07:10On the right, then. All done?
0:07:10 > 0:07:14At £128,000...
0:07:15 > 0:07:18Congratulations!
0:07:18 > 0:07:23'The successful bidders were former quantity surveyor Steve
0:07:23 > 0:07:28'and Carol, who used to work in the complaints department at the BBC.
0:07:28 > 0:07:29'Uh-oh!
0:07:29 > 0:07:31'They run a B&B in France,
0:07:31 > 0:07:35'but plan to renovate this store as their base in the UK,
0:07:35 > 0:07:38'away from that lovely weather.
0:07:38 > 0:07:40'I met them to find out more.'
0:07:40 > 0:07:43- Lovely to meet you. Congratulations.- Thank you.
0:07:43 > 0:07:47- Before we go further, who's this? - Billy.
0:07:47 > 0:07:50He's a fox terrier.
0:07:50 > 0:07:53He's been with us in France for...
0:07:53 > 0:07:55He's 13. Eight years.
0:07:55 > 0:08:00- France? Tell me more.- Yes. Carol? - We live in France.
0:08:00 > 0:08:03We moved there permanently ten years ago.
0:08:03 > 0:08:07We moved to what was then our holiday home.
0:08:07 > 0:08:12We just got fed up with everything so we decided to see how we got on.
0:08:12 > 0:08:16- We're still there ten years later. - Whereabouts?- In Burgundy.
0:08:16 > 0:08:21- Oh, great.- We're about 40 minutes from the main wine areas.
0:08:21 > 0:08:24- Are you wine lovers?- Yes. MARTIN LAUGHS
0:08:24 > 0:08:29Although, since my stroke last year, I've cut down a little bit,
0:08:29 > 0:08:31just to be safe.
0:08:31 > 0:08:35- You had a stroke last year?- I did. Last May.
0:08:35 > 0:08:40It was quite a bad stroke, but I'm lucky
0:08:40 > 0:08:43because I came out of it.
0:08:43 > 0:08:47Thanks to Carol, because she was there every day.
0:08:47 > 0:08:54Once I'd got my voice back, I was on the road to recovery.
0:08:54 > 0:08:57'It's wonderful to see Steve doing so well.
0:08:57 > 0:09:00'After his stroke, Steve and Carol realised
0:09:00 > 0:09:06'they needed to spend more time in the UK, so went in search of a pied a terre.'
0:09:06 > 0:09:12We were looking for a place that was in the middle of a small town.
0:09:12 > 0:09:16We happen to know Beaminster because we were married here.
0:09:16 > 0:09:20Our parents lived here for quite a while.
0:09:20 > 0:09:23- Married here? - Yes. In the church down there.
0:09:23 > 0:09:27- The one you can see from the garden? - Yes.- Fantastic!
0:09:27 > 0:09:32We thought we'd buy a small cottage, something already done up!
0:09:32 > 0:09:39Something we could go into without much trouble. Then we bought this!
0:09:39 > 0:09:42'Not quite a small cottage you can walk into,
0:09:42 > 0:09:47'but the potential has caught their imagination.
0:09:47 > 0:09:50'They are very excited about the blank canvas.'
0:09:54 > 0:09:58The planning permission is for a two-bedroom dwelling,
0:09:58 > 0:10:01but there's only the two of us.
0:10:01 > 0:10:06We thought we'd have one bedroom and leave the rest for living in.
0:10:06 > 0:10:11The idea is to have, on the ground floor, garage and kitchen-diner.
0:10:11 > 0:10:17Then, upstairs, we plan to put the living room and bedroom, bathroom.
0:10:17 > 0:10:21There's a quirk of this plot that the garden is higher at the back,
0:10:21 > 0:10:24a metre higher than the house.
0:10:24 > 0:10:29So when you've got the living room upstairs,
0:10:29 > 0:10:34it'll be really nice to go from the living room direct into the garden.
0:10:34 > 0:10:37We don't know whether we can do that.
0:10:37 > 0:10:43'They plan to use glass to create a better transition from the living room to the garden.
0:10:43 > 0:10:45'It would be a radical makeover
0:10:45 > 0:10:49'but they do realise there are planning hoops to jump through.
0:10:49 > 0:10:55'They appreciate they're in a conservation area and have a listed building.'
0:10:55 > 0:11:02We're hoping that, if we can make this listed facade correct,
0:11:02 > 0:11:07there might be a little room to manoeuvre on the other side.
0:11:07 > 0:11:12'Luckily, there also seems to be room for manoeuvre on the budget.
0:11:12 > 0:11:19'Steve and Carol are not committing to one, but they estimate the work could cost £60,000 or more.
0:11:19 > 0:11:23'The timescale is a case of when it's ready, it's ready.
0:11:23 > 0:11:28'So, while they're serving croissants to guests in France,
0:11:28 > 0:11:31'how will they track developments in Blighty?'
0:11:38 > 0:11:40We did it the other way round.
0:11:40 > 0:11:45When we renovated our place in France, we were living in the UK.
0:11:45 > 0:11:47We had a staged plan,
0:11:47 > 0:11:52and so we would go over at specific points
0:11:52 > 0:11:55to check work that had been done,
0:11:55 > 0:11:58to check over the next stage of the project.
0:11:58 > 0:12:01And that's the rough idea for this.
0:12:01 > 0:12:06It's one of these things where you have to have a good architect,
0:12:06 > 0:12:08a good builder,
0:12:08 > 0:12:13and hopefully a good client - like we are!
0:12:13 > 0:12:19- I wish you good health.- Thank you. - Continue improving. I look forward to seeing how you get on.
0:12:19 > 0:12:23Isn't it interesting the way things turn out?
0:12:23 > 0:12:29Steve and Carol ending up a stone's throw from the church where they were married!
0:12:29 > 0:12:36I believe that this project will help Steve in his recovery from his stroke. We wish him all the best.
0:12:36 > 0:12:39Find out how they get on later in the show.
0:12:42 > 0:12:45This stretch of water is Portsmouth harbour,
0:12:45 > 0:12:50a naval base since the Middle Ages, which has become a busy ferry port.
0:12:50 > 0:12:55I'm on the northwest tip of the harbour,
0:12:55 > 0:12:58between Fareham and Gosport.
0:12:58 > 0:13:03The area is popular with commuters, with excellent road and rail links,
0:13:03 > 0:13:07so it's suburbia - or should that be sea-burbia?
0:13:08 > 0:13:14A few minutes from the water and you could be in any 1930s suburb of any town.
0:13:14 > 0:13:21It's got a mix of housing but the lot I'm here to see might be the best of the bunch.
0:13:21 > 0:13:27It's detached, three bedrooms, and had a guide of £165,000 to £170,000.
0:13:28 > 0:13:35'It looks like a good solid 1930s property, with large bay windows.
0:13:35 > 0:13:39'Separating it from quite a busy road is a long strip of garden.
0:13:39 > 0:13:45'The house next door sold two years ago for £238,000, so it seems a good start.
0:13:45 > 0:13:49'Let's hope that inside is as positive as outside.'
0:13:49 > 0:13:55I'm sure I have said this loads, but I grew up in a house just like this.
0:13:55 > 0:13:58It was almost decorated in the same fashion!
0:13:58 > 0:14:04Needless to say, it needs a modern overhaul. It's terribly dated.
0:14:04 > 0:14:08But you've got some great space. Look at this.
0:14:08 > 0:14:11You could easily fit a downstairs toilet here.
0:14:11 > 0:14:13It would be great to add that.
0:14:13 > 0:14:18I'm not sure what this is, probably covering up a door to the kitchen.
0:14:18 > 0:14:20A really nice sitting room,
0:14:20 > 0:14:24a lovely bay window, which is what these houses are famous for.
0:14:24 > 0:14:29A good space in here. A little fireplace there.
0:14:29 > 0:14:34Overall, it feels clean and very tidy, so a positive start.
0:14:34 > 0:14:37'You can't ask for much more than that.
0:14:37 > 0:14:39'The kitchen is tucked away.
0:14:39 > 0:14:43'It looks like the dining room wall has been knocked through
0:14:43 > 0:14:47'to open things up, so that's another positive note.'
0:14:47 > 0:14:52You've got the loo at the back, but if you put one under the stairs,
0:14:52 > 0:14:56you could turn that into a nice utility space.
0:14:56 > 0:14:58I love this open-plan kitchen.
0:14:58 > 0:15:03It so reminds me of my old house. It's bizarre! It's a great space.
0:15:03 > 0:15:06You've got room to sit down, a big family table.
0:15:06 > 0:15:11I would like to see some folding doors or patio doors
0:15:11 > 0:15:13leading out to the garden.
0:15:13 > 0:15:19It would transform this place. In my opinion, it's this area that needs most attention.
0:15:19 > 0:15:21'Let's talk about that garden.
0:15:21 > 0:15:25'It's a whopper with a double-door garage.
0:15:25 > 0:15:29'Take a peek round the back and there's more.
0:15:29 > 0:15:34'It's bound to be a winner with the families this house appeals to.
0:15:34 > 0:15:37'And we haven't even been upstairs.'
0:15:37 > 0:15:42Call me psychic, but I know we'll have three bedrooms up here,
0:15:42 > 0:15:46one very small, and a decent size bathroom and, ta-da!
0:15:46 > 0:15:48I'm right.
0:15:48 > 0:15:53These were built to a standard design, although they vary in size.
0:15:53 > 0:15:58They do make for a practical family home and are generally well built.
0:15:58 > 0:16:02Although that is damp on the chimney breast.
0:16:02 > 0:16:07It could just be some flashing on the roof but it needs to be fixed.
0:16:07 > 0:16:10Apart from that, no surprises, so good.
0:16:17 > 0:16:21'I'm rather pleased this property's predictable.
0:16:21 > 0:16:25'It's easy to see what needs to be done - scrap the blue bathroom,
0:16:25 > 0:16:31'tear down this wallpaper and drag the place into the 21st century.
0:16:31 > 0:16:34'You may have guessed, I like this house.
0:16:34 > 0:16:38'Yes, it's dated. But dull? No.
0:16:41 > 0:16:45'It had an auction guide price of 165,000 to 170,000.
0:16:45 > 0:16:51'I was keen to see if my enthusiasm was shared by a local estate agent.'
0:16:51 > 0:16:54This is a fantastic home.
0:16:54 > 0:16:59It's perfect for the family buyer. 1930s, so a little bit of character.
0:16:59 > 0:17:04It adds a bit more in comparison to other properties in this area.
0:17:04 > 0:17:08It just needs a little bit of updating,
0:17:08 > 0:17:12a new kitchen and bathroom, and potentially a conservatory.
0:17:12 > 0:17:16Apart from that, I think it's a fairly small job updating.
0:17:16 > 0:17:19'That's good. It should be useable pretty quickly.
0:17:19 > 0:17:25'The estate agent reckons that turning it around to sell would be the best way to make money.
0:17:25 > 0:17:28'So, guided at 165,000 to 170,000,
0:17:28 > 0:17:31'what resale figures are we talking about?'
0:17:31 > 0:17:34In the current market, as it is now,
0:17:34 > 0:17:38anything between 195,000 to 200,000.
0:17:38 > 0:17:42Modernised, properties like this are rare to the market,
0:17:42 > 0:17:45so anywhere up to 235,000.
0:17:45 > 0:17:48'What might the rental return be?'
0:17:48 > 0:17:55If this property was fully updated it would achieve approximately £950 a month.
0:17:55 > 0:17:59When you're looking for an investment, what are you after?
0:17:59 > 0:18:03A highly desirable location, room to improve
0:18:03 > 0:18:07and a guide price low enough to leave room to manoeuvre.
0:18:07 > 0:18:11This has the lot. I wonder whether there was a battle at auction.
0:18:17 > 0:18:19Somebody get me under way.
0:18:19 > 0:18:24160. Do we have an opening bid of 160? Thank you, madam.
0:18:24 > 0:18:27160 we have. I have my opening bid.
0:18:27 > 0:18:30160. Do I have 162? Thank you, sir.
0:18:30 > 0:18:33164, madam? 164, I have.
0:18:33 > 0:18:35166? 166 is bid.
0:18:35 > 0:18:37168? 168, madam. Thank you.
0:18:37 > 0:18:42Sir? 170? 170's bid. Your bid, sir. Thank you. 172, madam?
0:18:42 > 0:18:45172, I have. 174?
0:18:45 > 0:18:48174's bid. 176?
0:18:48 > 0:18:51176 against you, seated. 178?
0:18:51 > 0:18:56178, we now have. 180? 180 seated here. 182?
0:18:56 > 0:19:01Shaking your head at me. Give you a one? You're back in. 181.
0:19:01 > 0:19:06182? No? 181,000. Are you all done?
0:19:06 > 0:19:10New bid. 182,000, madam. 182 I have here.
0:19:10 > 0:19:16Looking for 182 and a half. 182,000 I have once.
0:19:16 > 0:19:20182,000 I have twice.
0:19:20 > 0:19:22182,000
0:19:22 > 0:19:26going for the third and final time...
0:19:27 > 0:19:30Your property, madam. 182. Thank you.
0:19:31 > 0:19:36'The last-minute newcomer was Christine, who swept up the lot
0:19:36 > 0:19:40'with her one and only bid of 182,000.
0:19:40 > 0:19:44'She took early retirement from her work in care homes
0:19:44 > 0:19:48'and has turned her hand to investing in buy-to-let properties.
0:19:48 > 0:19:53'I met up with her to find out the plans for this place.'
0:19:53 > 0:19:58Christine, I can't believe the auction! One bid and it's yours.
0:19:58 > 0:20:03- What is it about this property that you love.- I like that it's detached.
0:20:03 > 0:20:09I like the fact that it's got off-road parking, a double garage,
0:20:09 > 0:20:15it's close to where I live cos I will be on site every day.
0:20:15 > 0:20:20- Are you planning on doing some of the work yourself?- Lots of the work.
0:20:20 > 0:20:24- Really?- Oh, yes. - Tell me your background, then.
0:20:24 > 0:20:28I was in the care home business for 25 years.
0:20:28 > 0:20:34In the course of that, I was always having to do DIY, mend this,
0:20:34 > 0:20:38sink blocked there, somebody's pulled the radiator off.
0:20:38 > 0:20:41Decorating a room once somebody moves out.
0:20:41 > 0:20:43When I gave that up,
0:20:43 > 0:20:48which was in 2006, I sat at home and watched Homes Under The Hammer!
0:20:48 > 0:20:50LAUGHS
0:20:50 > 0:20:53And thought, "I can do that!"
0:20:53 > 0:20:58'Christine's proved it because she now owns and manages
0:20:58 > 0:21:02'three buy-to-lets - I love it when we inspire people!
0:21:07 > 0:21:12'Christine's in the great position of doing this as a hobby.
0:21:12 > 0:21:14'Does she have all the kit?'
0:21:14 > 0:21:19I have my own tool room at home. Everything's hung up on the wall.
0:21:19 > 0:21:24And I know exactly where to put my hands on things.
0:21:24 > 0:21:27Fantastic! So you will be getting stuck in?
0:21:27 > 0:21:32- Absolutely.- What are you going to start doing?- The steamer. Oh, yes.
0:21:32 > 0:21:35That is one thing this house definitely needs.
0:21:35 > 0:21:39A steamer! You've got this wallpaper everywhere!
0:21:39 > 0:21:43- It's got to come off.- Yeah. Ceilings in some of the rooms.
0:21:43 > 0:21:48Until that's off, we can't really see what the plaster's like.
0:21:48 > 0:21:52- Any structural changes here? - No. Not structural.
0:21:52 > 0:21:57I want to put doors out of the dining room onto a patio.
0:21:57 > 0:22:02I want to relocate the downstairs cloakroom to under there.
0:22:02 > 0:22:08- Fantastic idea!- And then I want to change that into a utility room.
0:22:08 > 0:22:12'Good to know we're thinking along the same lines.
0:22:12 > 0:22:16'Helping Christine will be her brother, a builder,
0:22:16 > 0:22:19'who will subcontract professionals.
0:22:19 > 0:22:22'They have a ten to 12-week turnaround
0:22:22 > 0:22:25'and a 15 to 20 grand budget.
0:22:25 > 0:22:29'That's provided nothing goes wrong, which leads me on to...'
0:22:29 > 0:22:33The damp on the chimney breast. Could be the flashing.
0:22:33 > 0:22:37That's what I believe it to be, the flashing.
0:22:37 > 0:22:39But we will see!
0:22:39 > 0:22:45- Are you worried about that?- No. - Have you had professionals in?- No.
0:22:45 > 0:22:50- But you are going to?- Yes. I'm sure that is remedied quite easily.
0:22:50 > 0:22:55- Are you excited?- I can't wait for you to go and to get my overalls on!
0:22:55 > 0:22:59- Have you got your kit in your car? - Yes. It's there waiting.
0:23:03 > 0:23:08'Christine must be one of the most enthusiastic people I've met.
0:23:08 > 0:23:14'I don't want to hold her up, but need to know what drives her.'
0:23:14 > 0:23:17It's something that I like to do.
0:23:17 > 0:23:22If one day I think, "I don't want to do it today," I don't have to.
0:23:22 > 0:23:28- But you are supposed to be a retired lady. - I'm supposed to be. Absolutely.
0:23:28 > 0:23:34- You're certainly not scared of the challenge.- Good heavens, no!
0:23:34 > 0:23:38Do you find working on your own can be quite lonely?
0:23:38 > 0:23:41No, I love it. I can be, um...
0:23:41 > 0:23:46I can allow my thoughts to just run wild and I love it. LOVE IT!
0:23:51 > 0:23:56I love this house, and Christine, she loves her work.
0:23:56 > 0:23:58I think she's got great plans.
0:23:58 > 0:24:03I hope that damp doesn't do too much damage to her budget.
0:24:03 > 0:24:06Will we find this place transformed?
0:24:06 > 0:24:09Find out what happens later in the show.
0:24:12 > 0:24:17'Coming up, there could be a catch with this commercial property.'
0:24:17 > 0:24:20It's got rising damp halfway up the wall.
0:24:21 > 0:24:27'We return to this detached house to hear about a DIY nightmare.'
0:24:27 > 0:24:32Not only did the wallpaper come off but the plaster came off as well.
0:24:32 > 0:24:36'But first, the pressure was on for this French connection.'
0:24:36 > 0:24:40It's been tricky, not made easier by the fact that we live in France.
0:24:44 > 0:24:47'We've returned to Dorset,
0:24:47 > 0:24:50'where Steve and Carol bought this former store
0:24:50 > 0:24:52'for £128,000 at auction.
0:24:52 > 0:24:58'It had planning permission to convert into a two-bedroom dwelling.
0:24:58 > 0:25:02'They live in France but wanted a pied a terre in the UK
0:25:02 > 0:25:04'after Steve suffered a stroke.
0:25:04 > 0:25:07'For them, the location was perfect.'
0:25:07 > 0:25:13We were married here. My parents lived here for quite a while.
0:25:13 > 0:25:16- Married here? - Yes. In the church down there.
0:25:16 > 0:25:20- The one you can see from the garden? - Yes.- Really?- Yes.- Fantastic!
0:25:22 > 0:25:28'The couple planned to convert the store into a single bedroom dwelling
0:25:28 > 0:25:32'by raising the roof a metre and creating two storeys.
0:25:32 > 0:25:36'Downstairs would be a garage and kitchen-diner.
0:25:36 > 0:25:40'Upstairs would be the bedroom, bathroom and living room,
0:25:40 > 0:25:44'with views over the beautiful garden.
0:25:46 > 0:25:52'We returned almost two years later to see how the development went.
0:25:52 > 0:25:55'Quite a lot has changed.
0:25:55 > 0:26:00'Steve and Carol have also bought the cottage next door for 115,000,
0:26:00 > 0:26:04'and incorporated it into their plans,
0:26:04 > 0:26:08'knocking the two buildings into one.
0:26:08 > 0:26:12'And, after almost two years of planning and work,
0:26:12 > 0:26:17'they have overseen the conversion of a storehouse and an old cottage
0:26:17 > 0:26:22'into a breathtaking contemporary home.
0:26:24 > 0:26:29'The store had been an empty shell but now, on the ground floor,
0:26:29 > 0:26:33'Steve and Carol have created a store room and a garage,
0:26:33 > 0:26:36'a kitchen-diner...
0:26:37 > 0:26:40'..and a living room.'
0:26:41 > 0:26:45Originally, this was a concrete floor.
0:26:45 > 0:26:50So when you first came, this was completely open.
0:26:50 > 0:26:54This is now our ground floor living room.
0:26:54 > 0:26:56There was no window here
0:26:56 > 0:27:00and the rear elevation here has completely changed,
0:27:00 > 0:27:04with a full height oak screen at the back here.
0:27:04 > 0:27:06We've got a door here.
0:27:06 > 0:27:13The only thing really that's original is the stone here.
0:27:18 > 0:27:23'Upstairs, there are two bedrooms, each en suite.
0:27:26 > 0:27:29'And an additional living space.'
0:27:29 > 0:27:34Originally, this room didn't exist because there was no first floor.
0:27:34 > 0:27:39We put the first floor in and raised the roof. This is the old truss.
0:27:39 > 0:27:43It was nice to keep something of the old building.
0:27:43 > 0:27:45That shows how much we went up.
0:27:45 > 0:27:47I love this room.
0:27:47 > 0:27:51It's light. You get a wonderful view onto the garden.
0:27:51 > 0:27:57You just feel it's away from the world although you're in the town.
0:28:07 > 0:28:11'Carol and Steve completely transformed this old property,
0:28:11 > 0:28:15'but it was quite complicated to coordinate.'
0:28:15 > 0:28:20It's been tricky, not made easier by the fact we live in France.
0:28:20 > 0:28:24We relied an awful lot on the architect,
0:28:24 > 0:28:29who supervised the work as well as doing the drawings.
0:28:29 > 0:28:33These days, with the internet, you can send photographs.
0:28:33 > 0:28:35That worked well.
0:28:35 > 0:28:40You can't do it quite the same as if you are there all the time.
0:28:40 > 0:28:46We couldn't have lived in it, anyway, so we had to leave them to get on with it.
0:28:46 > 0:28:49Perhaps they preferred it that way!
0:28:52 > 0:28:56'The whole process was beneficial for Steve's rehabilitation
0:28:56 > 0:28:58'after his stroke.'
0:28:58 > 0:29:02One particular part of this
0:29:02 > 0:29:06is things like using the telephone.
0:29:06 > 0:29:10Two years ago, I found that very difficult.
0:29:10 > 0:29:12Not in front of somebody.
0:29:12 > 0:29:16Talking becomes quite difficult on the phone.
0:29:16 > 0:29:21So you have to really, really concentrate on what you're doing.
0:29:21 > 0:29:27That's one part, a small part, of the recovery process.
0:29:27 > 0:29:32'Steve's recovery is great news and goes to show that having a stroke
0:29:32 > 0:29:36'didn't stop him living his life to the full.
0:29:40 > 0:29:46'The beautiful world Steve and Carol created must have come at a cost.
0:29:46 > 0:29:50'Just how much, they're keeping close to their chest.'
0:29:50 > 0:29:55We always knew it was going to cost quite a bit of money to do the work.
0:29:55 > 0:30:00At the same time, we thought, well, this is a project for us.
0:30:00 > 0:30:07- We tried to keep the budget quite tight and we're happy with the outcome.- Yeah.
0:30:07 > 0:30:13'They bought the property for 128,000 and the cottage for £115,
0:30:13 > 0:30:18'and spent their estimated budget of £60,000 on the development.
0:30:18 > 0:30:22'That makes a total spend of around £303,000.
0:30:22 > 0:30:24'We asked along two estate agents
0:30:24 > 0:30:27'to hear their views on the changes.'
0:30:27 > 0:30:31'The changes in this barn are phenomenal.
0:30:31 > 0:30:35'Originally, it was one very small, derelict barn.
0:30:35 > 0:30:39'Now it's been incorporated with an adjoining cottage.
0:30:39 > 0:30:41'So it's changed totally.'
0:30:41 > 0:30:45I like the accommodation. It's really quirky.
0:30:45 > 0:30:49I think buyers in general like that sort of thing.
0:30:49 > 0:30:56Having an extra reception upstairs, somebody could make that into a third bedroom, if they wanted to.
0:30:58 > 0:31:02The layout's great. The rooms are really spacious.
0:31:02 > 0:31:07I like the way features have been kept, the old beams.
0:31:07 > 0:31:10It adds a nice feel to the property.
0:31:10 > 0:31:12The garage is a great use of space.
0:31:12 > 0:31:17Parking is a problem, being so close to the centre of the town.
0:31:17 > 0:31:23Parking is definitely an advantage, and the garage, great storage.
0:31:25 > 0:31:28'Steve and Carol don't intend to let the property out,
0:31:28 > 0:31:32'but, as they spend a lot of time in France,
0:31:32 > 0:31:36'renting this as a holiday let could be an option for the future.'
0:31:36 > 0:31:38Holiday cottage wise,
0:31:38 > 0:31:43you're looking in excess of £1,000 a month in the holiday seasons.
0:31:43 > 0:31:46It'd be a very popular holiday let.
0:31:46 > 0:31:52You'd be looking £900 to £1,100 per calendar month at peak season.
0:31:52 > 0:31:54It's quite a good figure.
0:31:54 > 0:31:58It gives you an option if we decided to go that way.
0:31:58 > 0:32:01- It's quite interesting.- Yes.
0:32:01 > 0:32:06'How much could the property be worth if they were to sell it?'
0:32:06 > 0:32:09I think...market value, currently,
0:32:09 > 0:32:13you'd be looking 270,000 to 310,000.
0:32:13 > 0:32:18If they were to take it to the market, we're probably looking
0:32:18 > 0:32:22at something in the order of £400,000 to £425,000.
0:32:22 > 0:32:29I think that we'd be quite happy, obviously, at the higher valuation.
0:32:29 > 0:32:34We didn't do it to make money but, you know, we're happy.
0:32:34 > 0:32:39'Obviously, for Carol and Steve, this was not about making money,
0:32:39 > 0:32:44'but to create a base in the UK and also help in Steve's recovery.'
0:32:49 > 0:32:54'I'm in the small town of Snodland in Kent on the River Medway,
0:32:54 > 0:32:56'a few miles from Rochester.
0:32:56 > 0:33:00'Until the 19th century, it was purely agricultural,
0:33:00 > 0:33:05'then that changed when cement, brick and papermaking industries
0:33:05 > 0:33:07'were introduced.
0:33:07 > 0:33:12'The 12,000 people who live here still call it "the village".'
0:33:12 > 0:33:15Snodland, a good place to invest in property?
0:33:15 > 0:33:21The area is undergoing a ten-year regeneration programme, including 1,000 new houses.
0:33:21 > 0:33:2530 miles from London, eight miles from Maidstone.
0:33:25 > 0:33:31What was up for auction? It's this commercial premises at a guide price of £95,000 to £100,000.
0:33:31 > 0:33:33Let's take a look.
0:33:33 > 0:33:39'This commercial premises was formerly an estate agent's office.
0:33:39 > 0:33:43'From outside, it appears in pretty good nick.'
0:33:43 > 0:33:49What's on offer? Commercial premises. Big frontage!
0:33:49 > 0:33:54It's what you need if you use it as a commercial premises.
0:33:54 > 0:33:58It doesn't smell damp. It looks to be in reasonable condition.
0:33:58 > 0:34:03It's not a bad size space and I like the little areas to put things.
0:34:03 > 0:34:07When you're running a business, you need storage areas.
0:34:07 > 0:34:12You need back office areas. That's here, which is good news.
0:34:12 > 0:34:16You've got this main area, little area, then a kitchen area there.
0:34:16 > 0:34:20All in all, it's ticking a few boxes.
0:34:20 > 0:34:27'With a bit of sprucing up, this could be ready to go for whatever business venture.
0:34:27 > 0:34:32'Below, there is a bonus of a decent sized cellar for storage.
0:34:32 > 0:34:37'That regeneration scheme could mean a lot more passing trade.
0:34:37 > 0:34:41'Let's hope there are no surprises on the first floor,
0:34:41 > 0:34:45'which is accessed through the commercial unit.'
0:34:45 > 0:34:48Upstairs, more really useful space.
0:34:48 > 0:34:53You've got a loo at the back. Smaller room there.
0:34:53 > 0:34:56Then a larger room at the front.
0:34:56 > 0:35:01This has been configured to be additional office space.
0:35:01 > 0:35:03Couple of issues.
0:35:03 > 0:35:06That's quite damp.
0:35:06 > 0:35:10What I reckon is happening, water's going onto the flat roof.
0:35:10 > 0:35:12It's going against the wall.
0:35:12 > 0:35:16You've got rising damp halfway up the wall.
0:35:16 > 0:35:19Get that roof replaced and check the flashings.
0:35:19 > 0:35:24As I said, it's an office at the moment, an additional office.
0:35:24 > 0:35:28How about converting this into a flat?
0:35:28 > 0:35:32I don't think you'd have to do very much configuration.
0:35:32 > 0:35:34Very interesting idea.
0:35:35 > 0:35:38'What makes it more interesting
0:35:38 > 0:35:42'is that next door have already created a separate entrance
0:35:42 > 0:35:44'for their upstairs space,
0:35:44 > 0:35:48'with those steel stairs and access down the alley.
0:35:48 > 0:35:51'So it's a viable option.'
0:35:53 > 0:35:57I know you're thinking, "It's a flat above a shop, Martin!
0:35:57 > 0:36:01"It's a complete nightmare to get finance and planning permission."
0:36:01 > 0:36:04Well, in some cases, possibly so.
0:36:04 > 0:36:10In this instance, it's already had planning permission passed in December 2003.
0:36:10 > 0:36:15That's lapsed but the fact there was permission passed sets a precedent.
0:36:15 > 0:36:19You can probably get it reinstated, which is good news.
0:36:19 > 0:36:22'There could be a lot of extra expense.
0:36:22 > 0:36:26'Central heating would have to be installed,
0:36:26 > 0:36:28'plus a new bathroom suite.
0:36:28 > 0:36:32'But the returns could justify the means.
0:36:32 > 0:36:36'With the property guided at £95,000 to £100,000,
0:36:36 > 0:36:41'it's time to hear the thoughts of a local estate agent.'
0:36:41 > 0:36:45It's an interesting property. It is a period property.
0:36:45 > 0:36:48It's got some original details and a cellar.
0:36:48 > 0:36:54Do you change it to residential? Do you keep it commercial?
0:36:54 > 0:36:57Do you change upstairs to a flat? Let it? Sell it?
0:36:57 > 0:37:01A lot of things can be done with this property.
0:37:01 > 0:37:07'So there are options, but how easy would it be to get change of use?'
0:37:07 > 0:37:12I think there would be a possibility to making the upstairs a flat.
0:37:12 > 0:37:16It would be difficult to sell as only some lenders will lend
0:37:16 > 0:37:21on properties over a commercial property area, as it were.
0:37:21 > 0:37:27But I think you would get permission to change it to a flat to let out.
0:37:27 > 0:37:30'So, barring problems with the change of use,
0:37:30 > 0:37:34'how do the figures for a flat stack up?'
0:37:34 > 0:37:38If you wanted to sell a one or a two-bedroom flat above a shop,
0:37:38 > 0:37:43you'd probably get in the region of 75,000 to 80,000.
0:37:43 > 0:37:47If this was a one-bedroom flat, you could probably achieve
0:37:47 > 0:37:51£350 to £400 a month for it.
0:37:51 > 0:37:55'And for the commercial property downstairs?'
0:37:55 > 0:38:00The going rate, I would say, would be about £4,000 per annum to rent
0:38:00 > 0:38:03a commercial property.
0:38:03 > 0:38:07Selling it, I think it would be in the region of 40,000 to 50,000.
0:38:11 > 0:38:14Lots of options with this one, and money to be made
0:38:14 > 0:38:19if you get planning permission to convert the offices into a flat.
0:38:19 > 0:38:23Who fancied taking a chance when it went under the hammer?
0:38:26 > 0:38:31Lot 44. Let's say 100,000 for it. 100,000 somewhere? £100,000?
0:38:31 > 0:38:37Give me 90. Let's get it on the way. £90,000 bid I have. I'm obliged.
0:38:37 > 0:38:39And three now, do I see?
0:38:39 > 0:38:4393, I'm bid. 95? It's against you.
0:38:43 > 0:38:4695, I am bid. 97, do I say?
0:38:46 > 0:38:49It's against you. 97. Fill it up to 100?
0:38:49 > 0:38:51100. And two?
0:38:51 > 0:38:54102. And five? 105.
0:38:54 > 0:38:59105. And seven? 107, I'm looking for. At £105,000...
0:38:59 > 0:39:01107. I'm obliged.
0:39:01 > 0:39:04Make it ten, sir? Make it ten.
0:39:04 > 0:39:09And 12? 12? 112? Is that a definite no?
0:39:09 > 0:39:12Is that a yes? It's a yes to a definite no.
0:39:12 > 0:39:16£110,000, I've got. 112 anywhere else?
0:39:16 > 0:39:18Are we all done at £110,000?
0:39:18 > 0:39:21First time at £110,000.
0:39:21 > 0:39:25Second time at £110,000. Third and final time, if you're all done...
0:39:25 > 0:39:28It's yours at 110,000.
0:39:28 > 0:39:32'That winning bidder was Kabel who, with his wife, Rani,
0:39:32 > 0:39:36'got the property for £110,000.
0:39:36 > 0:39:40'That was £10,000 over the top guide price.
0:39:40 > 0:39:47'Rani works part time as a cashier, and Kabel has retired from his newspaper shop, which he rents out.
0:39:47 > 0:39:51'This is their first go at developing.'
0:39:51 > 0:39:55- Good to meet you both. Congratulations.- Good to meet you.
0:39:55 > 0:39:57Why did you choose this one?
0:39:57 > 0:40:00It just had a feeling.
0:40:00 > 0:40:07It looked clean, solid and it ain't too far from where we live so we took a chance.
0:40:07 > 0:40:12- What was it, Rani, that you liked? - Something for making money, really.
0:40:12 > 0:40:14LAUGHS
0:40:14 > 0:40:18- What prompted you to do this now? - I'm bored.
0:40:18 > 0:40:21- You're bored? - I've got nothing to do all day.
0:40:21 > 0:40:23I've been to lots of auctions.
0:40:23 > 0:40:31She said, "Why don't you buy something?" I said, "I will do, once something hits me."
0:40:31 > 0:40:36We looked at a few properties and this is the best one in the area.
0:40:36 > 0:40:40'Kabel and Rani are not typical developers.
0:40:40 > 0:40:43'Most people buy for investment.
0:40:43 > 0:40:47'Buying because you're bored is rather unusual.
0:40:51 > 0:40:54'This is Kabel and Rani's first development project
0:40:54 > 0:40:58'but they've already got their eye on the way forward.'
0:40:58 > 0:41:03We're going to convert upstairs into a one-bedroom flat.
0:41:03 > 0:41:05Put a staircase outside.
0:41:05 > 0:41:10Do all the necessary work, according to plans.
0:41:10 > 0:41:17- You're going to try and get the plans in place...- The architect's put plans in two weeks ago.
0:41:17 > 0:41:23He's doing the building regs. We should get it in eight weeks.
0:41:23 > 0:41:25You're going to stick with what...
0:41:25 > 0:41:31We'll stick to plan. If we have to change something, we have to change something.
0:41:31 > 0:41:36Will the plan then be to rent out the flat or to sell it?
0:41:36 > 0:41:41I'll see what it's worth. If I can sell it, I'll sell it.
0:41:41 > 0:41:43If not, let it out.
0:41:43 > 0:41:47'With the uncertain state of the housing market, it's good to see
0:41:47 > 0:41:50'that Kabel and Rani have flexible plans.
0:41:56 > 0:42:02'But wouldn't dealing with a house or flat be more straightforward?'
0:42:02 > 0:42:06I'm buying commercial for reason, you get to rent.
0:42:06 > 0:42:11If I buy a house for the same price, you're not going to get the rent.
0:42:11 > 0:42:15If I can let the flat out and let the shop out,
0:42:15 > 0:42:17I should get double the rent.
0:42:17 > 0:42:20How much is it going to cost you?
0:42:20 > 0:42:25- We've got a figure in mind around about five grand.- 5,000?
0:42:25 > 0:42:28Around about that. Give or take a bit more.
0:42:28 > 0:42:30Whatever it takes to do.
0:42:30 > 0:42:37'The majority of that £5,000 will go on converting and refurbishing the flat upstairs.
0:42:37 > 0:42:43'Kabel doesn't plan to do much with the commercial unit, except install a new kitchen.
0:42:43 > 0:42:47'He'll save on labour costs by doing the work himself with friends.
0:42:47 > 0:42:49'There's Rani, too, of course!'
0:42:49 > 0:42:56- Rani, what are you going to do? - A bit of painting, a bit of tidying up. That's all, really.
0:42:56 > 0:43:02I can't do much because I had operation. I can't lift heavy stuff so I'll leave it to him.
0:43:02 > 0:43:06'I don't blame you! They've got a schedule of three months.
0:43:06 > 0:43:10'With his mates, Kabel plans to erect that new staircase,
0:43:10 > 0:43:16'remove the existing staircase and install a new kitchen.
0:43:16 > 0:43:19'Let's not forget that new bathroom suite.
0:43:19 > 0:43:22'For a job like this, even on mate's rates,
0:43:22 > 0:43:26'that budget looks like it will be stretched.'
0:43:26 > 0:43:30- All that for five grand? - It could be more.- Five to eight.
0:43:30 > 0:43:34My friends think it could be around about that.
0:43:34 > 0:43:37We can't see much more than that.
0:43:37 > 0:43:43- The staircase is going to take a big chunk out of it, £800.- Wow.
0:43:43 > 0:43:49- Congratulations. I look forward to seeing how you get on. - Thank you very much. Can't wait.
0:43:49 > 0:43:56A lot of Rani and Kabel's plans depend on getting that change of use reinstated.
0:43:56 > 0:43:59A £5,000 budget to do the conversion of the flat?
0:43:59 > 0:44:04It's going to be tight! Find out how they get on later in the show.
0:44:07 > 0:44:12Time has flown. How have our buyers got on with their properties?
0:44:12 > 0:44:15Let's go back and check out what's happened.
0:44:16 > 0:44:21'Back to Gosport in Hampshire, where property developer Christine
0:44:21 > 0:44:25'bought this three-bed detached house for 182,000.
0:44:25 > 0:44:30'Its condition was perfect for Christine, a former care home owner.
0:44:30 > 0:44:36'She planned to do most of the work, and didn't want to waste any time.'
0:44:36 > 0:44:40- Are you excited?- I can't wait for you to go and to get my overalls on!
0:44:40 > 0:44:45- Have you got your kit in your car? - Yes. It's all there waiting.
0:44:46 > 0:44:49'We didn't even get offered a cup of tea!
0:44:49 > 0:44:54'All that enthusiasm made us keen to return three months later
0:44:54 > 0:44:59'to find out if Christine had taken care of this home.'
0:45:16 > 0:45:19It was very old-fashioned.
0:45:19 > 0:45:22There was a breakfast bar here,
0:45:22 > 0:45:24a stand-alone oven there
0:45:24 > 0:45:29and just a basic cupboard with one above over there.
0:45:29 > 0:45:32The whole lot was ripped out.
0:45:32 > 0:45:36This area here was widened a little bit.
0:45:36 > 0:45:40So there was another beam put in there for the strength.
0:45:40 > 0:45:44Neutral coloured kitchen with integrated appliances,
0:45:44 > 0:45:48and now we have a breakfast bar as well.
0:45:48 > 0:45:52I also, for an extra touch, put plinth lights around the bottom.
0:45:52 > 0:45:55And I'm thrilled with the results.
0:45:55 > 0:45:59'It's a very stylish kitchen.
0:45:59 > 0:46:03'Christine also turned the loo into a utility area,
0:46:03 > 0:46:07'installing the new closet under the stairs.
0:46:07 > 0:46:11'The house demonstrates a high standard of finish,
0:46:11 > 0:46:14'with a contemporary bathroom suite upstairs.
0:46:14 > 0:46:17'The predominantly neutral decor
0:46:17 > 0:46:20'with accent walls helps to make the house saleable.
0:46:20 > 0:46:24'But getting here wasn't straightforward.'
0:46:24 > 0:46:27I went out to my van and got the steamer.
0:46:27 > 0:46:31I was excited and wanted to get the wallpaper off.
0:46:31 > 0:46:33It didn't happen the way I'd planned.
0:46:33 > 0:46:36Not only did the wallpaper come off,
0:46:36 > 0:46:39but the plaster came off as well.
0:46:39 > 0:46:44Once the top plaster had come off, the bottom was in such a state
0:46:44 > 0:46:48that it came off and we were back to brickwork.
0:46:48 > 0:46:54So we had three skipfuls of brick and rubble. It was quite horrendous.
0:46:54 > 0:46:56'Not a great start.
0:46:56 > 0:47:00'That led to the unplanned total rewiring of the house.
0:47:00 > 0:47:04'Fortunately, the potential damp problem
0:47:04 > 0:47:08'had already been fixed by the previous owner.
0:47:08 > 0:47:12'With that dealt with, it's easier to focus on the good points.
0:47:12 > 0:47:16'The new back doors lead to one of the biggest pluses.'
0:47:18 > 0:47:22I've loved the transformation of the garden,
0:47:22 > 0:47:24the transformation of the garage.
0:47:24 > 0:47:29When you go right to the back of the garden, it used to be a wilderness.
0:47:29 > 0:47:35I've now done that into what I think is a barbecue area.
0:47:35 > 0:47:38The greenhouse I've used.
0:47:38 > 0:47:42I've brought on seeds. They're all now in the garden.
0:47:42 > 0:47:46There's now tomatoes growing and runner beans.
0:47:46 > 0:47:49Back to the good life!
0:47:49 > 0:47:53'There's enough room behind the garage to run a smallholding,
0:47:53 > 0:47:59'so the good life could be possible, but it's certainly not been simple.'
0:47:59 > 0:48:03I have been here, it feels like 24/7.
0:48:03 > 0:48:06I have devoted a lot of time.
0:48:06 > 0:48:11I've done the decorating, the paint work, the garden.
0:48:11 > 0:48:19I went home every night shattered, filthy, longing to get into a hot bath, but I've loved every minute!
0:48:19 > 0:48:22'I reckon all that hard graft has paid off.
0:48:22 > 0:48:28'With the help of her brother, Andy, Christine has a finished product,
0:48:28 > 0:48:31'bang-on the schedule of 12 weeks.
0:48:31 > 0:48:35'So what about her 15 to 20 grand budget?'
0:48:36 > 0:48:39Oh, dear! LAUGHS
0:48:39 > 0:48:41I've come in at 22.
0:48:41 > 0:48:46But it's because I put the integrated appliances in
0:48:46 > 0:48:50and because of the replastering, but I'm still happy.
0:48:51 > 0:48:59'Added to the £182,000 purchase price, the £22,000 renovation budget
0:48:59 > 0:49:03'means Christine's total spend is about £204,000.
0:49:03 > 0:49:07'So, will the house prove a good investment?
0:49:07 > 0:49:11'We asked two local estate agents what they thought.'
0:49:11 > 0:49:13'I think they've done a good job.
0:49:13 > 0:49:16'They've made it nice and clean, contemporary.
0:49:16 > 0:49:20'The floral prints work very well.'
0:49:20 > 0:49:25They've opened up the space between the kitchen and dining room.
0:49:25 > 0:49:28The bedrooms will work well with the new bathroom.
0:49:28 > 0:49:33The big tiles are very popular. Good choice. They've done OK.
0:49:33 > 0:49:38'She's done a nice job inside and outside. The garden looks superb.'
0:49:38 > 0:49:43The kitchen and bathroom fittings are neutral, which people like.
0:49:43 > 0:49:47'Plenty of garden space, both front and back.
0:49:47 > 0:49:49'Plenty of room for children.
0:49:49 > 0:49:52'You can put an extension on the back.'
0:49:52 > 0:49:57There's a garage and a vegetable plot, which is very popular.
0:49:57 > 0:50:00'Will the resale price be equally attractive?
0:50:00 > 0:50:03'Christine plans to sell.
0:50:03 > 0:50:06'With the total spend at £204,000,
0:50:06 > 0:50:10'will the valuations mean she'll be sitting pretty?'
0:50:10 > 0:50:16I would expect it to achieve in the region of 220,000 to 225,000.
0:50:16 > 0:50:21I would put the property on the market for £230,000 to £235,000.
0:50:21 > 0:50:24LAUGHS I love the 235!
0:50:24 > 0:50:28But I'd be happy with either.
0:50:28 > 0:50:29Yeah. That's OK.
0:50:29 > 0:50:35'That top figure could mean a pre-tax profit of £31,000.
0:50:35 > 0:50:38'Pretty good going for 12 weeks' work.
0:50:38 > 0:50:40'If she decides not to sell,
0:50:40 > 0:50:45'there could be a rental income of £900 per calendar month.
0:50:45 > 0:50:48'After the excitement of this renovation,
0:50:48 > 0:50:52'does Christine plan to take some gardening leave?'
0:50:52 > 0:50:58A rest then, hopefully, when I've sold this, on to the next project.
0:51:02 > 0:51:07'Earlier, we were in Snodland, in Kent, where Kabel and Rani
0:51:07 > 0:51:10'bought this commercial property for 110,000.
0:51:10 > 0:51:15'Kabel splashed out on this because he wanted something to do
0:51:15 > 0:51:18'and always fancied developing.
0:51:18 > 0:51:21'They plan to convert the first floor into a one-bed flat
0:51:21 > 0:51:26'and keep the ground floor as commercial premises.
0:51:27 > 0:51:30'Well, that was six months ago.
0:51:30 > 0:51:33'The office space is pretty unchanged.
0:51:33 > 0:51:36'So, what's happened upstairs?'
0:51:36 > 0:51:40I'll tell you what we haven't done! That's simpler!
0:51:40 > 0:51:42We done everything.
0:51:45 > 0:51:49'The most striking change is the use of the staircase landing.
0:51:49 > 0:51:53'It now has a contemporary galley style kitchen.
0:51:56 > 0:52:00'The old loo area has a new bathroom suite.
0:52:03 > 0:52:07'And the bedrooms have been redecorated.
0:52:07 > 0:52:11'If you're wondering how to get in, go out the back,
0:52:11 > 0:52:15'and you'll see a new staircase, giving the flat private access.
0:52:15 > 0:52:19'So far, so very good.'
0:52:19 > 0:52:23It took us a bit longer than we thought it was going to
0:52:23 > 0:52:29and it's cost us more, so it's just a learning curve, this first one.
0:52:29 > 0:52:33Cos we didn't plan it, it went on and on.
0:52:33 > 0:52:38It took longer than we thought, that was the hardest part.
0:52:38 > 0:52:43'Some of that time had been eaten up applying for planning permission
0:52:43 > 0:52:46'to change upstairs to residential.
0:52:46 > 0:52:51'The flat also needed replastering, rewiring, plumbing and new windows.
0:52:51 > 0:52:56'What really set Kabel back was something he hadn't expected.'
0:52:57 > 0:53:01Planning permission wasn't too bad. Took six weeks.
0:53:01 > 0:53:06It's the building regs which were more than we thought they'd be.
0:53:06 > 0:53:09The building inspector's been very good.
0:53:09 > 0:53:14We didn't know the building regs before we bought it.
0:53:14 > 0:53:18'Keeping the office space meant providing a disabled toilet,
0:53:18 > 0:53:23'one of the necessary building regulations he hadn't bargained for.
0:53:23 > 0:53:29'Making sure everything passed extended the schedule from four to six months.
0:53:29 > 0:53:31'The budget was hit
0:53:31 > 0:53:38'because Kabel made a "back of an envelope" estimate of just £5,000.'
0:53:38 > 0:53:40It's gone more above.
0:53:40 > 0:53:44It's gone to about, all told, I think we'll be about 25.
0:53:44 > 0:53:48It's 24 at the moment. I've got £1,000 to spend on it.
0:53:48 > 0:53:50Bits and pieces.
0:53:50 > 0:53:58'On top of the £110,000 he paid, Kabel's total spend will now be about £135,000.
0:53:58 > 0:54:02'It's lucky that a lot of work was done by friends and Rani,
0:54:02 > 0:54:05'or the final bill could have been higher
0:54:05 > 0:54:08'and any profits flushed away.
0:54:12 > 0:54:15'Remember, Kabel has spent £135,000.
0:54:15 > 0:54:18'So, we asked two local estate agents
0:54:18 > 0:54:25'if they thought he'd got the best out of his investment.'
0:54:25 > 0:54:30The quality of work looks good, particularly in the flat.
0:54:30 > 0:54:36They're more advanced there. They've really made the best of the space.
0:54:36 > 0:54:39You go through the kitchen to the lounge
0:54:39 > 0:54:43or lounge-bedroom, that was very imaginative.
0:54:43 > 0:54:48The flat is lovely. There's two wonderful original fireplaces.
0:54:48 > 0:54:51One in the bedroom, one in the lounge.
0:54:51 > 0:54:55The way they're decorating is really good. Really nice.
0:54:55 > 0:54:57'So, the flat gets the thumbs-up.
0:54:57 > 0:55:02'With the commercial space below, who would this property appeal to?'
0:55:02 > 0:55:06It might be somebody who wants the retail
0:55:06 > 0:55:10and living accommodation above, that is possible.
0:55:10 > 0:55:15Or someone might just want the shop and not need accommodation.
0:55:15 > 0:55:21They may then let out the flat to cover their costs of starting a business.
0:55:21 > 0:55:26Should they wish to sell, it would have to be as a whole.
0:55:26 > 0:55:31The retail outlet with the self-contained flat
0:55:31 > 0:55:34would reach a figure of £150,000.
0:55:34 > 0:55:39The resale value for the property would be in the region of £150,000.
0:55:39 > 0:55:44'With Kabel's total spend estimated at £135,000,
0:55:44 > 0:55:48'that could mean a pre-tax profit of 15,000.
0:55:48 > 0:55:52'That's disappointing for him. So, how about the rental figures?'
0:55:52 > 0:55:55Should you rent out the property,
0:55:55 > 0:56:00the retail outlet should achieve around £6,000 per annum,
0:56:00 > 0:56:07and the self-contained flat should reach £550 per calendar month.
0:56:07 > 0:56:13I think the rental on the flat would be in the region of £450 a month.
0:56:13 > 0:56:19The rental on the retail premises, approximately £6,000 a year.
0:56:19 > 0:56:21'That rental income
0:56:21 > 0:56:25'could give Kabel a healthy annual yield of just over 9%.
0:56:25 > 0:56:27'Is that better news?'
0:56:28 > 0:56:30That's good.
0:56:30 > 0:56:35'Kabel's first dip into developing hasn't gone as well as he'd hoped,
0:56:35 > 0:56:39'but it hasn't put him off and has shown him
0:56:39 > 0:56:42'the importance of research and planning.
0:56:42 > 0:56:45'So, where does he go from here?'
0:56:45 > 0:56:50Put this on the market. If I can't sell it, I'll have to rent it out.
0:56:52 > 0:56:58A house, a flat or a bit of land, we'll have lots more things for you next time on Homes Under The Hammer.
0:56:58 > 0:57:02- Make sure you join us then. - Goodbye for now.- Goodbye.
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