0:00:02 > 0:00:04With the ups and downs of the property market,
0:00:04 > 0:00:06you have to trust your instincts.
0:00:06 > 0:00:09Nowhere is this more true than in the auction room.
0:00:09 > 0:00:13So join us now as we take the lottery out of property under the hammer.
0:00:38 > 0:00:41Buying at auction doesn't have to be scary.
0:00:41 > 0:00:45If you do your research and you stick to your limit, you can bid with confidence.
0:00:45 > 0:00:48Let's meet some buyers who hopefully did that.
0:00:48 > 0:00:52But did they bag a bargain or get more than they bargained for?
0:00:52 > 0:00:54Let's take a look at what they bought.
0:00:54 > 0:01:01'This five-bedroom house in Cornwall is a real hotchpotch of badly-fitting fixtures.'
0:01:01 > 0:01:03There you go, that just about sums this house up.
0:01:05 > 0:01:11'In Hampshire, this three-bed detached looked a bargain from outside, but inside...'
0:01:11 > 0:01:15Rather worryingly, the wallpaper's peeling off.
0:01:15 > 0:01:21'And there was an opportunity in Glasgow to buy two bungalows together in one lot.'
0:01:21 > 0:01:25Big question is, will it be two for the price of one or double the trouble?
0:01:27 > 0:01:29'All these properties are being sold at auction
0:01:29 > 0:01:35'and we will find out who bought them and what they paid for them when they went under the hammer.'
0:01:42 > 0:01:45'With its beautiful beaches and countryside,
0:01:45 > 0:01:50'the Southwest of England is a highly desirable part of the UK to live.
0:01:50 > 0:01:52'Many people would love to have a place down here
0:01:52 > 0:01:59'and in the past decade, a high number of buyers have purchased properties as second homes here.
0:01:59 > 0:02:02'But there has been a down side.'
0:02:02 > 0:02:07The influx of second-home owners buying properties in Cornwall
0:02:07 > 0:02:09has pushed prices out of the reach of many locals.
0:02:09 > 0:02:14But not here in Delabole, where I think there was a fantastic opportunity for somebody.
0:02:14 > 0:02:18This is it. Guide price of £125,000 to £150,000.
0:02:18 > 0:02:23It's a five-bedroom detached house. You can't argue with that, can you?
0:02:23 > 0:02:25# I'd call that a bargain
0:02:25 > 0:02:29# The best I ever had
0:02:29 > 0:02:32'That is a lot of house for the price.
0:02:32 > 0:02:36'From the front, it doesn't look too bad, either. But wait, there's more.
0:02:36 > 0:02:39'By the looks of it, you also get a free dining table and chairs.'
0:02:39 > 0:02:44# The best I ever had
0:02:44 > 0:02:49You don't know what you're going to find on the inside of a house like this.
0:02:49 > 0:02:53Yes, very grand from the outside, but what's been done with the internal layout?
0:02:53 > 0:02:58Don't know yet, but a fairly cramped entrance, which I'm not too keen on.
0:02:58 > 0:03:01Through to a front sitting room area there.
0:03:01 > 0:03:04Making use of the local slate with the fireplaces.
0:03:04 > 0:03:09And then this. What is going on? They've taken away the enclosure for the under-stairs cupboard
0:03:09 > 0:03:14and it's all open-plan, but you've got this pillar. It just doesn't work at all. All a bit strange.
0:03:14 > 0:03:22Through to another bit of the house that looks like it's kind of been, well, manked about with.
0:03:22 > 0:03:28Two fireplaces in this room. The floors are different levels, which doesn't work.
0:03:28 > 0:03:33I like the fact that they're stripped, but it just feels like somebody's just had a go
0:03:33 > 0:03:37and not really thought it through before they started. However, what's that?
0:03:42 > 0:03:45'Yes, I know it has a garden, but it's not just any garden.
0:03:45 > 0:03:47'It's a huge family one.
0:03:50 > 0:03:52'With a massive car-parking area to boot.'
0:03:52 > 0:03:56# Looking through the window
0:03:56 > 0:04:01'So, plenty of room to extend or maybe even develop.'
0:04:02 > 0:04:07So, great news out there, but unfortunately, back in the house, the bad news continues.
0:04:07 > 0:04:10The kitchen is just a disaster.
0:04:10 > 0:04:15For a house like this, this should be the focal point. It should be big and family-friendly.
0:04:15 > 0:04:20As it is, disastrous units and this hotchpotch feeling continues.
0:04:20 > 0:04:24I mean, look at this. A main beam going across here.
0:04:24 > 0:04:28You need to do something here. You need to build it out into that extension,
0:04:28 > 0:04:34you need to open up these walls and create that central focus for the house and it's got to be here.
0:04:34 > 0:04:39# It'll be just like starting over
0:04:39 > 0:04:42'Upstairs, there are four main bedrooms.
0:04:46 > 0:04:48'A box room.
0:04:50 > 0:04:52'And a bathroom.
0:04:52 > 0:04:56'All are in need of upgrading and potentially some repair work,
0:04:56 > 0:05:01'if that damp's anything other than a few loose tiles or a problem with the flashing.
0:05:01 > 0:05:03# Starting over
0:05:03 > 0:05:07'But something is still not quite right.'
0:05:07 > 0:05:11So, to sum up, upstairs, the kind of boxy feeling continues.
0:05:11 > 0:05:15Although, interestingly, it doesn't feel like it's been messed around up here.
0:05:15 > 0:05:18Again, there's no focal point, there's no master bedroom.
0:05:18 > 0:05:22Downstairs, you need the kitchen to be a focal point. Upstairs, you need a master bedroom.
0:05:22 > 0:05:25But I'm not sure how you'd create that.
0:05:28 > 0:05:31'This property will need some thought putting into it,
0:05:31 > 0:05:35'so hiring an architect could be money well spent.
0:05:35 > 0:05:39'Also, because there is no significant industry in this predominantly residential area,
0:05:39 > 0:05:45'rental yields are very low, so any buyer will be purchasing the house for occupation or resale.
0:05:46 > 0:05:50'Either way, maximising the potential here will be paramount.
0:05:53 > 0:05:56'We asked the auctioneer who sold it for his opinion.
0:05:58 > 0:06:02As well as the plain, obvious, great big house,
0:06:02 > 0:06:07there's quite a lot of land out the back, and if you look around at the neighbouring properties,
0:06:07 > 0:06:11there's new houses being built set back, so you might get yourself a second dwelling,
0:06:11 > 0:06:15which wouldn't knock an awful lot off the mother house,
0:06:15 > 0:06:17cos there's quite a lot of land.
0:06:19 > 0:06:24'A plot of land this size goes for around £80,000 around here.
0:06:24 > 0:06:28'Developing on it might only devalue the property by around 20 grand,
0:06:28 > 0:06:33'so you could make a useful increase in your total value if you did.
0:06:33 > 0:06:39'So, even without this, how much could this realistically be sold on for?'
0:06:39 > 0:06:43If you put this in apple-pie order, made the best of it,
0:06:43 > 0:06:48probably 265, 275, which is a funny price range
0:06:48 > 0:06:51when the market's hard work,
0:06:51 > 0:06:54because it's a job to tug things through 250.
0:06:56 > 0:07:00Ha! Well, there you go. That just about sums this house up.
0:07:00 > 0:07:03The fact that the door, when you open it, goes straight into the stairs.
0:07:03 > 0:07:09They didn't bother to measure it before they fitted it. This whole house has not been thought through.
0:07:09 > 0:07:13But whoever takes it on has the potential to turn this into a beautiful house.
0:07:13 > 0:07:15Let's find out who bought it at the auction.
0:07:15 > 0:07:18Delabole. Big detached property.
0:07:18 > 0:07:20Five beds. Big chunk of ground at the back.
0:07:20 > 0:07:23We know it's 150, don't we? Yes, we do.
0:07:23 > 0:07:27150. 55. 165. 170.
0:07:27 > 0:07:31175. 180?
0:07:31 > 0:07:33180. 185.
0:07:34 > 0:07:36190? No, 190 I want.
0:07:36 > 0:07:38185.
0:07:38 > 0:07:40188. 188.
0:07:40 > 0:07:42190. At 190.
0:07:42 > 0:07:44At 190. It's got to make 200, hasn't it? At 190.
0:07:44 > 0:07:48At 190. Stood has it. Both sat are out.
0:07:48 > 0:07:51At 190. That's a lot of house.
0:07:51 > 0:07:54At 190. 190 once.
0:07:54 > 0:07:56190 twice.
0:07:56 > 0:08:00At 190. Falling short of 200, but at 190, sure and done.
0:08:00 > 0:08:05At 190. You both missed it. Well done, sir. That's a lot of property.
0:08:05 > 0:08:10'That winning bid of £190,000 came from Lee.
0:08:13 > 0:08:16'He's bought this house with his partner, Andrea.
0:08:16 > 0:08:20'They live locally and have wanted to buy together for some time.
0:08:23 > 0:08:27'Lee's an electrician and Andrea is a research chemist.
0:08:27 > 0:08:30'I met up with them to find out more.'
0:08:32 > 0:08:35- Lee, Andrea, well done. - Thank you very much.
0:08:35 > 0:08:39- Congratulations. It's a lovely house, actually.- Yeah, we think so.
0:08:39 > 0:08:43- Why did you want to buy it?- Erm, I've lived in the village all my life,
0:08:43 > 0:08:48wanted to stay in the village and this seemed an ideal opportunity to do that.
0:08:48 > 0:08:52- In the future, maybe have some children, looking at it as a big family home.- Right.
0:08:52 > 0:08:55And what about your background? Are you from the village?
0:08:55 > 0:08:58I've been in Cornwall about ten years.
0:08:58 > 0:09:02I came down here for my first job after university
0:09:02 > 0:09:05and I really like Cornwall and I want to stay here.
0:09:05 > 0:09:10- And tell me about you two. How long have you been together? - We've been together four years now.
0:09:10 > 0:09:13Met at the local village carnival.
0:09:13 > 0:09:16- Really? - Yeah. We had a float. So, yeah.
0:09:16 > 0:09:19- Tell me more about that. - I play football for the village
0:09:19 > 0:09:24- and we do a carnival float, and I was a pirate, wasn't I?- Yep.
0:09:24 > 0:09:29And I had one too many and we got chatting and the rest is history.
0:09:29 > 0:09:32The first time you met, he was wearing a pirate outfit?
0:09:32 > 0:09:35- Yeah, I pulled a pirate. - Pulled a pirate!
0:09:35 > 0:09:37# I am a pirate
0:09:37 > 0:09:39# You are a princess
0:09:39 > 0:09:43# We could sail the seven seas
0:09:43 > 0:09:48'Ahh, shiver me timbers! Love at first sight through an eye patch!
0:09:48 > 0:09:52'And it seems these two have had an eye on this house for a while now.'
0:09:52 > 0:09:56So what was it about this house that you liked? Did you know the house?
0:09:56 > 0:10:01I've got to be honest, we've driven by two or three times in the months before
0:10:01 > 0:10:04- and said, "Oh, if only that came on the market."- Really?
0:10:04 > 0:10:06- Yeah.- No!- That's the honest truth.
0:10:06 > 0:10:13- You picked this particular house out? - Yeah, we'd driven by it and said, "That's a really nice house,
0:10:13 > 0:10:15- "that'd suit us down to the ground."- No!
0:10:15 > 0:10:20I was at work one day and Ange rang me up. "You'll never believe it, there's an auction sign up!"
0:10:20 > 0:10:25- Wow. So it's meant to be. - Hopefully, yeah.- You made it happen.
0:10:27 > 0:10:31'What's also meant to be is some drastic changes to the look of the place.'
0:10:33 > 0:10:36- There is a bit of work to be done. - Yes, there certainly is.
0:10:36 > 0:10:39- A little bit more than we thought. I think you agree, Ange.- Yeah.
0:10:39 > 0:10:43We'll change the downstairs layout, that's what we're hoping to do.
0:10:43 > 0:10:47And we'll have to get a structural engineer to have a look cos of the walls.
0:10:47 > 0:10:50But open it up, really. It's very boxy.
0:10:50 > 0:10:55We'd like to open the downstairs layout, kitchen-diner, and just get a bit more light in.
0:11:00 > 0:11:06'I couldn't agree more. As Lee's an electrician and both of them are prepared to do work themselves,
0:11:06 > 0:11:11'they should manage on their initial £20,000 budget pretty well.
0:11:11 > 0:11:14'But first they need to agree on how to spend it.'
0:11:15 > 0:11:22- Do you always agree on what you're going to do?- Eventually, we usually come to some kind of compromise.
0:11:22 > 0:11:25We talk about it and then we go Andrea's way. That's what happens.
0:11:25 > 0:11:29- But it starts out that you've got different views?- Yeah, usually.
0:11:29 > 0:11:35- What are your views?- Well, it's little things, like the kitchen.
0:11:35 > 0:11:39Yeah, it's the budget, what to spend on what part of the house, really.
0:11:39 > 0:11:44It's not major disagreement, it's just niggly little things that we disagree on. Like the doors.
0:11:44 > 0:11:48- She likes the old-fashioned doors. - I like the original 1930s doors. - Absolutely.
0:11:48 > 0:11:53- And I'm not so keen. - THEY LAUGH - But, again, it's minor.
0:11:55 > 0:11:58'Compromise could be the name of the game here,
0:11:58 > 0:12:01'but they shouldn't rush into making decisions
0:12:01 > 0:12:03'that could lead them into deep water.'
0:12:03 > 0:12:07Give me an idea of how long it's going to take to do what you need to do.
0:12:07 > 0:12:12We've put a minimum of six months. Four to six months to get liveable.
0:12:12 > 0:12:17We're lucky, we're not in a real rush to get in, but we'd like to get it done as soon as possible.
0:12:17 > 0:12:23Yeah. This is going to be our home for the next five to ten years, so there's no hurry.
0:12:23 > 0:12:26We're not going to turn it round for a profit.
0:12:26 > 0:12:28Great. Congratulations to you both.
0:12:28 > 0:12:34- Good luck with it.- Thank you. - I look forward to seeing how you get on turning this into a family home.
0:12:35 > 0:12:40Well, it's great that Lee and Andrea are locals and they've actually bought this place to live in.
0:12:40 > 0:12:46Profit doesn't come into the equation. But when they're doing up this place, they have to be careful.
0:12:46 > 0:12:51It's one of those ones where you just sit down and plan very, very carefully before you start,
0:12:51 > 0:12:55otherwise their £20,000 budget will soon disappear.
0:12:55 > 0:12:57Find out how they get on later in the show.
0:13:02 > 0:13:08'I'm in Shirley in Southampton, a residential and shopping area close to the city centre.
0:13:08 > 0:13:12'It's the site of Southampton General, a large teaching hospital,
0:13:12 > 0:13:15'and home to the university's School of Medicine.
0:13:15 > 0:13:19'The question is, will today's property here be a major operation?'
0:13:20 > 0:13:25When the catalogue said the property was near to the hospital, they weren't kidding,
0:13:25 > 0:13:30because it is literally there at the end of the street, which means I'm already thinking rental
0:13:30 > 0:13:33with that steady stream of doctors and nurses keen for a short commute.
0:13:33 > 0:13:36The house itself is a three-bedroom detached
0:13:36 > 0:13:40and it had a guide of just £150,000.
0:13:41 > 0:13:46'I'm sure any medic would love to be just a few steps from home after a long shift.
0:13:46 > 0:13:50'The house is on a fairly busy road, as you'd imagine, leading up to the hospital.
0:13:50 > 0:13:54There's off-street parking for at least two cars, which solves that problem.
0:13:54 > 0:14:00'The property itself, well, it looks like it could be in need of a few stitches.'
0:14:00 > 0:14:04# Dress me up in stitches, it's now or never
0:14:04 > 0:14:07# Tired of wearing black and blue
0:14:08 > 0:14:14Oh, the first thing that hits you when you walk in this door is the smell of damp.
0:14:14 > 0:14:17But I'm going to forget that, because what a lovely surprise.
0:14:17 > 0:14:22Look at this wonderful open hallway, you've got lovely wide steps here.
0:14:22 > 0:14:26But, rather worryingly, the wallpaper's peeling off,
0:14:26 > 0:14:31you've got walls wet to the touch, so you've got to take on board all of that.
0:14:31 > 0:14:36But moving along the hallway, you've got this spacious space to put a downstairs loo.
0:14:36 > 0:14:40That's all a big tick in the right box. And, of course, through here,
0:14:40 > 0:14:42the kitchen is not a bad space,
0:14:42 > 0:14:46so you wouldn't necessarily need to knock through
0:14:46 > 0:14:50to borrow space from this room, the dining room. You've got a lovely square shape here.
0:14:50 > 0:14:55I'd be inclined to keep this as it is. Nice views out to the garden.
0:14:55 > 0:14:59All in all, a good, substantial family house
0:14:59 > 0:15:02with good downstairs living space. I really like it.
0:15:06 > 0:15:12'Yes, I like the space. I like the deep bay in the massive front room and the curve of the kitchen walls,
0:15:12 > 0:15:14'but I don't like the smell of damp.
0:15:14 > 0:15:18'As you walk around, you can see more and more signs of wet all over the walls.'
0:15:20 > 0:15:23Upstairs, what a lovely surprise.
0:15:23 > 0:15:26This landing is wonderfully spacious.
0:15:26 > 0:15:30But more than that, these three bedrooms are all good doubles,
0:15:30 > 0:15:33which is unusual in a 1930s layout.
0:15:33 > 0:15:39However, in this master bedroom, you've got very worrying cracks on either side of this bay.
0:15:39 > 0:15:41I've seen this before on houses of this era
0:15:41 > 0:15:45and it can be caused by badly-fitted UPVC double-glazing,
0:15:45 > 0:15:48which pushes this bay out and down.
0:15:48 > 0:15:53But just because you know what's caused these issues, doesn't mean they're cheap to fix.
0:15:53 > 0:15:56So I'd get some expert advice ASAP.
0:15:59 > 0:16:03'I think this place is going to need more than a quick bandage.
0:16:03 > 0:16:05'The wiring certainly looks shot to pieces
0:16:05 > 0:16:08'and there are hairline cracks in quite a number of the walls.
0:16:08 > 0:16:12'I get the feeling this bathroom could do with being ripped out and started again.
0:16:12 > 0:16:17'There are some nice features lurking, such as the fireplace in the rear bedroom.
0:16:17 > 0:16:25'But a closer examination of the legal pack reveals there's something else lurking that's more worrying.'
0:16:25 > 0:16:28It's a bit of a weird one in the catalogue description,
0:16:28 > 0:16:34because it says this property has an unregistered freehold title. So what does that actually mean?
0:16:34 > 0:16:39Well, it may surprise you that around a fifth of freehold titles aren't registered,
0:16:39 > 0:16:42even though it was introduced way back in Victorian times
0:16:42 > 0:16:45and it's been compulsory from 1990.
0:16:45 > 0:16:49But with regards to this house, it means you must make your own investigations
0:16:49 > 0:16:51into the seller's rights to sell the property.
0:16:51 > 0:16:55You'll have to trawl through the deeds, check for any covenants
0:16:55 > 0:16:57and ensure you know the boundaries of the land.
0:16:57 > 0:17:02Essentially, you have to cover your own back and make sure you know what you're buying.
0:17:02 > 0:17:06Now, it's not necessarily a deal breaker, but it's a hassle
0:17:06 > 0:17:11and it could make everything just that little bit more complicated.
0:17:11 > 0:17:16# It's a complicated situation
0:17:16 > 0:17:21# It's a complicated situation, mama
0:17:21 > 0:17:25'So, complicated and in need of complete renovation.
0:17:25 > 0:17:28'This is getting more demanding by the minute.
0:17:28 > 0:17:30'Still, you get a lot of house for the money
0:17:30 > 0:17:33'and that location near the hospital is hard to beat.
0:17:33 > 0:17:36'I asked along a local estate agent.'
0:17:36 > 0:17:38I think it'll appeal to a multitude of buyers.
0:17:38 > 0:17:42In its current state, it's going to probably be more investors,
0:17:42 > 0:17:45in which case, once they've refurbished the property,
0:17:45 > 0:17:47they'll let it out or sell it.
0:17:47 > 0:17:50'Right, let's talk numbers.'
0:17:50 > 0:17:55As I see this property today, it's probably worth about £160,000.
0:17:55 > 0:17:58That is allowing for some form of profit margin once it's refurbished.
0:17:58 > 0:18:01In terms of putting it back to market,
0:18:01 > 0:18:06I think the figure's probably around £225,000, but you might want to try for a little bit more.
0:18:07 > 0:18:10'How about letting it out?'
0:18:10 > 0:18:14Renting this property, you're probably looking at around £850 per calendar month.
0:18:15 > 0:18:20With a few nips and tucks, this property near the hospital could be a fantastic investment.
0:18:20 > 0:18:25Yes, it's got its issues, and that unregistered freehold is not to be ignored,
0:18:25 > 0:18:28but someone could be in for a good profit here.
0:18:28 > 0:18:32Let's find out who's ready to resuscitate this lot at the auction.
0:18:33 > 0:18:38OK, lot number 15. This is a three-bedroom detached house
0:18:38 > 0:18:42in need of refurbishment and I'm going to start the bidding
0:18:42 > 0:18:45at just £140,000.
0:18:45 > 0:18:49Thank you. 140 I do have on the back there. 140.
0:18:49 > 0:18:52142 I have down here in the front.
0:18:52 > 0:18:55144 we have. 146? 146 here.
0:18:55 > 0:18:58148? 148. Thank you.
0:18:58 > 0:19:00150? 150 seated.
0:19:00 > 0:19:02152? 152 I have.
0:19:02 > 0:19:06154 seated here at the front. 156?
0:19:06 > 0:19:10156. 158 here? 158 here.
0:19:10 > 0:19:13160, sir? 160 we have.
0:19:13 > 0:19:142? 162.
0:19:14 > 0:19:17I'll give you a half if it's going to help you. £500.
0:19:17 > 0:19:20You going to walk away from it for £500?
0:19:20 > 0:19:23I've got 162. 162,500.
0:19:23 > 0:19:26Shaking his head down here in the front at me.
0:19:26 > 0:19:29162 and a half. 163, thank you, in the room.
0:19:29 > 0:19:32163 right-hand side.
0:19:32 > 0:19:36164? No? It's 163 with a fresh bid.
0:19:36 > 0:19:40163 I have, then. Once.
0:19:40 > 0:19:43163 twice.
0:19:43 > 0:19:48163,000 with you, then. Third and final time.
0:19:48 > 0:19:53Sold. Good value. 163. Well done, madam. Your number, please.
0:19:54 > 0:19:58'That successful bid of £163,000 came from Nicky,
0:19:58 > 0:20:01'a full-time mum who lives in the area.
0:20:02 > 0:20:07'I braved the damp dining room again to find out her plans.'
0:20:07 > 0:20:11- Nicky, lovely to meet you today. - Hi.- Well done. Congratulations.
0:20:11 > 0:20:14- Thank you.- Are you new to this game? Is this the first time?
0:20:14 > 0:20:19- Completely, yes.- First time you've ever bought anything at auction? - Yes. Never been to an auction.
0:20:19 > 0:20:23Never done work on a house before. So it's all very new.
0:20:23 > 0:20:27- Have you bought this for a bit of a project?- Yes, and an investment.
0:20:27 > 0:20:31Primarily as an investment, but also I thought it'd be a good challenge.
0:20:31 > 0:20:35- So this isn't a house for you to fall in love with and move into?- No.
0:20:35 > 0:20:38So I've got to be careful when I do it up that I don't make it too personal.
0:20:38 > 0:20:42So what was it that you loved about this house enough to want to buy it?
0:20:42 > 0:20:45Erm, because I was buying it purely for an investment,
0:20:45 > 0:20:51location was the main thing, really, being close to the hospital.
0:20:51 > 0:20:58I think it has a lot of character, as you walk in, it's got a lovely airy feel. It just seemed right.
0:21:01 > 0:21:05'It didn't take Nicky long to make up her mind. Just one viewing, in fact.
0:21:05 > 0:21:09'She went on her own, without any expert eyes for a second opinion.
0:21:09 > 0:21:13'I hope she's taken into account all the work that needs doing.'
0:21:13 > 0:21:16So let's talk about the down sides of this house.
0:21:16 > 0:21:18What problems may be worrying you?
0:21:18 > 0:21:24Structurally, it's fine. There's a lot of work to do internally
0:21:24 > 0:21:28and outside with the back and front areas.
0:21:28 > 0:21:31So there's nothing that really concerns me.
0:21:31 > 0:21:34It's just quite a lot of work to get done.
0:21:34 > 0:21:38- What about the smell of damp when you walk in? It really does hit you. - It does, yes.
0:21:38 > 0:21:42There was a flood at Christmas, but it wasn't discovered for a couple of weeks,
0:21:42 > 0:21:46so that's a result of that.
0:21:46 > 0:21:49That'll be the first job, to dry the property out.
0:21:49 > 0:21:53Upstairs in the bedroom, it looks like the bay's dropping, you've got cracks.
0:21:53 > 0:21:55Is that to do with the instalment of the windows?
0:21:55 > 0:22:01Yes, I believe it is. I think it was when they put the replacement window in the bedroom
0:22:01 > 0:22:06that they didn't prop up the bay properly, so it's dropped slightly.
0:22:06 > 0:22:11But I understand it's not a problem structurally at all, it just needs levelling out.
0:22:14 > 0:22:18'Nicky is also going to get the unregistered freehold title sorted out,
0:22:18 > 0:22:22'which will tidy up the property's paperwork.
0:22:22 > 0:22:24'What are her plans regarding the renovation?'
0:22:24 > 0:22:30Internally, all ceilings will be skimmed, all the walls will be replastered,
0:22:30 > 0:22:34new kitchen, bathroom, rewiring.
0:22:34 > 0:22:41And then outside, the pointing needs doing, damp course and quite a bit of landscaping, front and back.
0:22:41 > 0:22:45- So, yeah, quite a bit to keep me busy. - Quite a lot to be getting on with.
0:22:45 > 0:22:50- What sort of look are you going for? - I think where it's got a lot of character,
0:22:50 > 0:22:55I want to try and balance it between still keeping that
0:22:55 > 0:23:01but bringing in some quite modern ideas, as well. So really striking a balance.
0:23:03 > 0:23:06'Nicky wants to rent the house out to a family eventually
0:23:06 > 0:23:10'and has a budget of around £35,000 to £37,000 for the makeover.
0:23:10 > 0:23:14'She's hiring a team of builders who'll live and work on site
0:23:14 > 0:23:17'and hopes it'll be finished within six to eight weeks.'
0:23:24 > 0:23:28Who will project manage this? Who is going to be casting their beady eye over the work?
0:23:28 > 0:23:31Well, I'll be involved in a lot of decisions,
0:23:31 > 0:23:36but somebody else is actually going to be really leading the project.
0:23:36 > 0:23:42But with regards to type of flooring and bathroom and kitchens,
0:23:42 > 0:23:44that would be me.
0:23:44 > 0:23:47So you've got all the fun stuff to do! That's not fair!
0:23:47 > 0:23:50- All the hard work is left to somebody else!- That's right!
0:23:50 > 0:23:53- It's been lovely to meet you. Good luck with this.- Thank you.
0:23:53 > 0:23:58- I really like this house and I'm sure you're going to do a great job. - That's very kind.- Thank you.
0:24:00 > 0:24:04I love this house, despite its damp, and I think Nicky has bought well.
0:24:04 > 0:24:07It is a big one, though, for a first project.
0:24:07 > 0:24:13I hope she's properly prepared. Find out how she gets on later in the programme.
0:24:14 > 0:24:19'Coming up, I see that these little bungalows in Glasgow are really pretty spacious, but...'
0:24:19 > 0:24:23In terms of the internal layout, it's disastrous!
0:24:23 > 0:24:28'We return to Hampshire to find the damp problem was worse than expected.'
0:24:28 > 0:24:34We ended up having to rebuild some walls, the kitchen floor had to be replaced.
0:24:35 > 0:24:39'But first, in Cornwall, the schedule's been ripped up.'
0:24:39 > 0:24:41We initially said six months.
0:24:41 > 0:24:43But maybe that was a little bit optimistic.
0:24:50 > 0:24:55'We're back in Delabole, Cornwall, where local couple Lee and Andrea
0:24:55 > 0:25:00'bought this five-bed detached house at auction for £190,000.
0:25:00 > 0:25:04'And it seemed as if fate was playing its part.'
0:25:04 > 0:25:09We'd driven by two or three times and said, "Oh, if only that came on the market,
0:25:09 > 0:25:11- "it would suit us down to the ground."- No!
0:25:11 > 0:25:16I was at work one day and Ange rang me up, "You'll never believe it, there's an auction sign up."
0:25:16 > 0:25:21- Wow. So it's meant to be. - Hopefully, yeah.- You made it happen.
0:25:22 > 0:25:28'The plan for this place was to redesign the interior, which was a boxy mish-mash of rooms
0:25:28 > 0:25:33'and ill-fitted fixtures, and turn it into a spacious family home.
0:25:34 > 0:25:37'We've returned almost two years later
0:25:37 > 0:25:40'to find out how the story has progressed.
0:25:42 > 0:25:48'Although not quite complete yet, the transformation is amazing.
0:25:48 > 0:25:51'The sitting room originally had two fireplaces,
0:25:51 > 0:25:54'but now has one in the centre of the room.
0:25:54 > 0:25:59'At the back, Lee and Andrea have built a large extension.
0:26:00 > 0:26:06'Inside, there's going to be a huge dining room and kitchen with doors looking out onto the garden.
0:26:07 > 0:26:12'The smaller front room has also been replastered and prepared for decoration.
0:26:13 > 0:26:18'Upstairs, it's a similar story for the four main bedrooms.
0:26:19 > 0:26:24'But a completely new use has been found for the box room.'
0:26:24 > 0:26:26OK, this used to be the box room,
0:26:26 > 0:26:30which we've taken out and put a staircase up into the loft,
0:26:30 > 0:26:34which, in future, we're going to make a bedroom, an en suite,
0:26:34 > 0:26:37a master bedroom and a master en suite.
0:26:37 > 0:26:41'That's a great idea. The property definitely lacked a master bedroom
0:26:41 > 0:26:45'and it's worth sacrificing a box room for that.
0:26:46 > 0:26:49'And the bathroom is well underway.'
0:26:49 > 0:26:53In the bathroom, we went for an L-shaped bath.
0:26:53 > 0:26:57This gave us more room to put a shower unit in.
0:26:57 > 0:27:00We went for the textured tiles.
0:27:00 > 0:27:04Even though they're a little bit more expensive than the other tiles we were looking at,
0:27:04 > 0:27:08we really liked these so we decided just to go for the feature wall
0:27:08 > 0:27:12and a little more behind the sink.
0:27:12 > 0:27:14Lee put lights on under the bath
0:27:14 > 0:27:19to create a little bit more atmosphere when you're soaking in the bath.
0:27:19 > 0:27:24We've got under-floor heating to keep your toes nice and cosy.
0:27:24 > 0:27:27And also we've got a towel rail to go here.
0:27:27 > 0:27:29And then that should be the bathroom finished.
0:27:33 > 0:27:38'Lee and Andrea have certainly done a great job of redesigning this house.
0:27:38 > 0:27:43'It has taken a lot of time and energy, especially as Lee has done most of the work himself,
0:27:43 > 0:27:46'along with the help of some very good friends.
0:27:46 > 0:27:49'All this while still working full-time.
0:27:49 > 0:27:52'And there's another reason it's taken two years to get to this stage.'
0:27:54 > 0:27:56I had my daughter last year.
0:27:56 > 0:28:00# Baby, baby
0:28:00 > 0:28:02And she's now 11 months old.
0:28:02 > 0:28:05So she's taken up a lot of my time.
0:28:05 > 0:28:07# Baby, baby
0:28:07 > 0:28:12'I bet she has! But at least little Isabella won't be short of space here.'
0:28:12 > 0:28:14She'll have a choice of bedrooms.
0:28:14 > 0:28:18We're not sure which one she's going to have yet.
0:28:19 > 0:28:22She might have a bedroom and a play room.
0:28:22 > 0:28:27But there'll be a lot of space for her and any other brothers or sisters that come along.
0:28:27 > 0:28:31'Not sure anyone's told Lee about that!
0:28:31 > 0:28:34'But with everything that's going on for Lee and Andrea,
0:28:34 > 0:28:37'it's not surprising the schedule ran over.'
0:28:38 > 0:28:43We initially said six months, but maybe that was a little bit optimistic.
0:28:43 > 0:28:48I think, when we got into the house and had a look around,
0:28:48 > 0:28:52it opened up a whole new can of worms where we found other problems
0:28:52 > 0:28:55and decided, "Let's do it right now."
0:28:55 > 0:28:58We weren't going to do the extension, we were going to move in,
0:28:58 > 0:29:03but we thought, with the mess, let's do it all now and get it finished
0:29:03 > 0:29:08and if it takes two years, then it takes two years or three years, so be it.
0:29:08 > 0:29:10But we'll get it how we want it at the end.
0:29:13 > 0:29:16'It looks as though Lee and Andrea's efforts have been well worth it
0:29:16 > 0:29:19'and they'll end up with a fantastic family home.
0:29:19 > 0:29:23'But how has this affected their original £20,000 budget?'
0:29:23 > 0:29:27I think we've spent just over £30,000 at the moment,
0:29:27 > 0:29:30so we are running over-budget.
0:29:30 > 0:29:36We've probably got another £5,000 to spend, cos most of the things have been purchased now.
0:29:36 > 0:29:40'Lee and Andrea bought the property for £190,000
0:29:40 > 0:29:44'and will have spent approximately £35,000 on the development,
0:29:44 > 0:29:48'making a total outlay of around £225,000.
0:29:48 > 0:29:51'So what impact does this have on the value here?
0:29:51 > 0:29:55'We asked two local property experts for their opinions.'
0:29:58 > 0:30:01The layout's pretty solid for family use.
0:30:01 > 0:30:06Great farmhousey kitchen across the back looking over what will become the garden
0:30:06 > 0:30:11and a nice layout of four pretty-near double bedrooms and a bathroom up here.
0:30:11 > 0:30:14Whilst it's not totally finished yet,
0:30:14 > 0:30:18if they carry on with the quality of work that they've started,
0:30:18 > 0:30:21there could be the makings of a really high-class home here.
0:30:23 > 0:30:29The layout is good. There's a nice element of flow around the property.
0:30:29 > 0:30:33I would say the best selling point would be the open-plan kitchen-diner
0:30:33 > 0:30:36opening out onto the back garden.
0:30:36 > 0:30:40It's a really nice family space
0:30:40 > 0:30:43which, once finished, will look really good.
0:30:46 > 0:30:49'Great feedback on Lee and Andrea's hard work, then.
0:30:49 > 0:30:53'So what could the house be worth once it's finished?'
0:30:53 > 0:30:56When the house is done and in all its glory,
0:30:56 > 0:31:02it'll be worth about £265,000, £275,000 perhaps.
0:31:02 > 0:31:07The resale value of this property will be £275,000.
0:31:07 > 0:31:11OK, yeah. I'm very happy with that, to be honest.
0:31:11 > 0:31:17- Yeah. 265, 270 is about what we expected.- So, yeah, brilliant.
0:31:22 > 0:31:27'A fantastic result for Lee and Andrea. Not only have they created a wonderful family home
0:31:27 > 0:31:33'but they can relax in the knowledge that they have quite an asset should they sell in the future.
0:31:33 > 0:31:36'Speaking of which, what's next for this young family?'
0:31:37 > 0:31:42- We've got to arrange a first birthday party.- Yep.
0:31:42 > 0:31:45And then really crack on with the house and get it finished.
0:31:45 > 0:31:51Get the flooring down and the carpets chosen and maybe some colour schemes for the walls
0:31:51 > 0:31:53and all the stuff that I like.
0:32:02 > 0:32:07I'm in Shettleston, traditionally regarded as a family area of Glasgow.
0:32:07 > 0:32:13Not necessarily your first choice when it comes to property investment, but all that could be set to change
0:32:13 > 0:32:18because in 2014, Glasgow is holding the Commonwealth Games
0:32:18 > 0:32:22and the velodrome, swimming pool and village centre are all going to be very close to here,
0:32:22 > 0:32:27so it could be that you need your trainers on to keep up with the property race.
0:32:31 > 0:32:36The property, or properties, I'm here to see is a rather interesting proposition.
0:32:36 > 0:32:41It's two semi-detached bungalows which are being sold as one lot.
0:32:41 > 0:32:45They have a guide price of £85,000 to £95,000. Each has got one bedroom.
0:32:45 > 0:32:49The big question is, will it be two for the price of one or double the trouble?
0:32:49 > 0:32:52# I got double trouble
0:32:52 > 0:32:54# I got double trouble
0:32:54 > 0:32:57# I got double trouble
0:32:57 > 0:33:00# Twice as much as anybody else, oh, yeah
0:33:00 > 0:33:04'So you get two houses for around that guide price of £85,000.
0:33:04 > 0:33:06'From the front, they don't look too bad,
0:33:06 > 0:33:12'but the fact they're boarded up hints that they're in need of some TLC.'
0:33:12 > 0:33:16Straight away, you can see, in very shabby condition inside,
0:33:16 > 0:33:20although a real bonus, the height of the ceiling is very unusual for a bungalow
0:33:20 > 0:33:22and it gives a great sense of space.
0:33:22 > 0:33:26In terms of the internal layout, it's disastrous!
0:33:26 > 0:33:30You've got this big room at the front, which could be a bedroom.
0:33:30 > 0:33:33This large central area, which is a complete wasted space.
0:33:33 > 0:33:37Another room there, which I presume is a rear sitting room.
0:33:37 > 0:33:41Straight away I'm thinking surely you must be allowed to play around with this,
0:33:41 > 0:33:44change the layout to give you at least two bedrooms.
0:33:44 > 0:33:48Then through to the rear, where there's a reasonable sized lounge,
0:33:48 > 0:33:52so you wouldn't be losing anything by making that into two bedrooms.
0:33:52 > 0:33:55Then through into the kitchen.
0:33:55 > 0:34:00So, all in all, a very, very, very large amount of space.
0:34:01 > 0:34:05'I'm surprised by the Tardis-like qualities of these properties.
0:34:05 > 0:34:08'But you'd certainly need to change the layout.
0:34:08 > 0:34:12'The bathroom is tiny and crammed into the hallway area.
0:34:12 > 0:34:15'And next door isn't looking great, either.
0:34:15 > 0:34:19'Because this one has less furniture, you can see cracks in the walls
0:34:19 > 0:34:22'and that porch area is in a right old state.
0:34:22 > 0:34:26'But you'd be off your trolley not to see the potential here.'
0:34:28 > 0:34:32There is some good news, because planning permission has been passed
0:34:32 > 0:34:35to go up into the roof and add another bedroom.
0:34:35 > 0:34:39That's going to save you at least two to three months
0:34:39 > 0:34:44and, when it comes to renting this place out, you want to get your money in as quickly as you can.
0:34:48 > 0:34:52'But would there be demand for two renovated bungalows around here?
0:34:52 > 0:34:57'To find out, I invited a local estate agent along to tell me more.'
0:34:57 > 0:35:02Shettleston probably sits about four miles away from Glasgow city centre.
0:35:02 > 0:35:04It's easy to get to Glasgow city centre from here
0:35:04 > 0:35:10and there's a wide variety of amenities and shops within the locale.
0:35:10 > 0:35:12I've worked this area for a long time
0:35:12 > 0:35:14and I didn't know this property existed.
0:35:14 > 0:35:19So it's unusual to find such a unique, traditional bungalow style
0:35:19 > 0:35:24in this part of Shettleston, because there's a mixture of council properties, cottages,
0:35:24 > 0:35:29cottage flats, so this one kind of stands alone in that it's a wee bit different.
0:35:34 > 0:35:38'Being the only bungalows like this in the vicinity is surely a good selling point,
0:35:38 > 0:35:40'especially if they were extended.
0:35:40 > 0:35:43'So, after renovation work has been finished on both,
0:35:43 > 0:35:46'what rental potential does each one have?'
0:35:46 > 0:35:53I would suggest a rental figure of somewhere between £450 and £500 per calendar month per unit.
0:35:53 > 0:35:56'Not bad. And if sold on?'
0:35:56 > 0:36:01I would estimate that each property, if it was refurbished,
0:36:01 > 0:36:05would probably be worth about £95,000 to £100,000 per unit.
0:36:07 > 0:36:13Well, you do get two properties for that £85,000 to £95,000 guide price,
0:36:13 > 0:36:16but as you can see, they are in a right old state.
0:36:16 > 0:36:18Still, that planning permission is good news
0:36:18 > 0:36:24and I think it could turn these two very shabby bungalows into desirable properties.
0:36:24 > 0:36:28Let's see who spotted the opportunity when it went under the hammer.
0:36:28 > 0:36:33Next is lot number 29, a pair of semi-detached bungalows
0:36:33 > 0:36:36offering a redevelopment opportunity if wished.
0:36:36 > 0:36:39Looking for an opening bid of just £60,000.
0:36:39 > 0:36:41£60,000 I've got, straight in.
0:36:41 > 0:36:43£60,000. Who's coming back at 65?
0:36:43 > 0:36:46£65,000. 65 I've got.
0:36:46 > 0:36:5170,000. £70,000 it is. 75.
0:36:51 > 0:36:54Is that 80, sir? 80,000 it is. At £80,000.
0:36:54 > 0:36:56£80,000. 85.
0:36:56 > 0:36:5985. 90,000. 90,000 it is.
0:36:59 > 0:37:03£90,000. I'll go 92 if it helps.
0:37:04 > 0:37:08£92,000. Yes, 92. I'll go 93 if it helps you, sir. 93.
0:37:08 > 0:37:1293 it is. £93,000.
0:37:12 > 0:37:1594. £95,000.
0:37:15 > 0:37:18Shake of the head. It's your bid at £95,000.
0:37:18 > 0:37:21£95,000. Are we all done?
0:37:21 > 0:37:24Last chance. I'm going to sell at £95,000.
0:37:24 > 0:37:27Anyone else coming in? Be very quick now.
0:37:27 > 0:37:31Last chance. £95,000. Sold.
0:37:31 > 0:37:35Congratulations, sir. And your bidding number is? Number 245.
0:37:38 > 0:37:43'That successful bid of £95,000 came from David.
0:37:43 > 0:37:47'He owns a double-glazing business and develops property on the side.
0:37:47 > 0:37:50'I met up with him to hear about his plans.'
0:37:50 > 0:37:53- David, good to meet you. - Nice to meet you.- Congratulations.
0:37:53 > 0:37:56Tell me why you wanted to buy this pair of bungalows.
0:37:56 > 0:38:00Basically, I've been born and brought up in this area,
0:38:00 > 0:38:04so I've always had my eye on them and I've seen them deteriorate over the years
0:38:04 > 0:38:10- and I thought it'd be a good investment.- So what about them other than familiarity did you like?
0:38:10 > 0:38:15It seems as if it's the only two bungalows in the street that aren't done up to a reasonable standard,
0:38:15 > 0:38:20- so hopefully we can get them up to that reasonable standard and make a profit.- They're big inside.
0:38:20 > 0:38:25- They're deceiving from the outside. I didn't realise when I bought them. - How do you mean?
0:38:25 > 0:38:30I thought they were one-bedroom bungalows but there's a few rooms and an extension at the back.
0:38:30 > 0:38:36- So you'd not seen them inside before you bought them?- No, we couldn't get in the property when we turned up.
0:38:36 > 0:38:40And presumably the planning was a big draw, as well.
0:38:40 > 0:38:46- I didn't know about that, either. - You didn't know about the planning? - Not at all. That was a bonus.
0:38:46 > 0:38:50- No kidding!- Once we got them through, it was a bonus.
0:38:50 > 0:38:52'You know what I'm going to say, don't you?
0:38:52 > 0:38:59'Buying properties at auction without viewing them beforehand or looking at the paperwork is a bonkers approach.'
0:38:59 > 0:39:01# Bonkers
0:39:01 > 0:39:06'Thankfully, in this case, David has actually lucked out, both in terms of space and the planning approval.
0:39:06 > 0:39:09'And there was the price he paid at auction.'
0:39:09 > 0:39:12- Would you have paid more for them? - Yes.
0:39:12 > 0:39:19- How much more?- I think we would've gone up to about £75,000 each for them, but they were 43 each.
0:39:19 > 0:39:23So you paid 95 for them and you would've gone to 150?
0:39:23 > 0:39:26Yes, 150, that was our budget.
0:39:26 > 0:39:28- So you saved yourself 55 grand.- Yes.
0:39:28 > 0:39:32It's the first time I've bought a property at an auction,
0:39:32 > 0:39:35but what a buzz I got from it. Afterwards, I felt really pleased.
0:39:35 > 0:39:38What are you going to do with the extra money?
0:39:38 > 0:39:42- Basically, I bought another property at that auction.- Did you?- Yeah.
0:39:42 > 0:39:46- That one was walk-in condition, so it's rented out now.- Wow!
0:39:49 > 0:39:52'David's done well with these bungalows.
0:39:52 > 0:39:58'Although this was his first auction purchase, he's been a developer for some time.'
0:39:59 > 0:40:04I started buying property when I was about 17, so every year I've bought one property,
0:40:04 > 0:40:06but this year we've bought three.
0:40:06 > 0:40:10It's just more of a nest egg for when I retire.
0:40:10 > 0:40:15- Right. How big is your portfolio now? - I have about 14 properties.
0:40:15 > 0:40:18So that gives your age away a bit. That's great.
0:40:18 > 0:40:23- So the idea is to buy, do up and rent out, then?- Yes.
0:40:23 > 0:40:28- What are you going to do with them? - We'll look at planning permission and just get them renovated
0:40:28 > 0:40:31and get them up to a reasonable standard.
0:40:31 > 0:40:33Right. What about the internal layout?
0:40:33 > 0:40:39- Cos it struck me when I first saw them that it's terribly bad use of space.- Yeah.
0:40:39 > 0:40:43It's something that I'll get my builders to come in and look at
0:40:43 > 0:40:46and we'll get it redrawn up exactly how we want it
0:40:46 > 0:40:49and get things moved about exactly where we need them.
0:40:49 > 0:40:55- Are you going to convert it from one bedroom to more?- Yes, hopefully there'll be three bedrooms.
0:40:55 > 0:41:00- Three?- Yeah, because hopefully we can take something upstairs. - Ah, of course.
0:41:00 > 0:41:03# Now there are three
0:41:03 > 0:41:04# Steps to heaven
0:41:05 > 0:41:08'Going up into the loft to create a third bedroom
0:41:08 > 0:41:14'will take David closer to rental income heaven. But how much will he need to spend?'
0:41:14 > 0:41:21I think it'll cost between £35,000 and £40,000 to get them up to a reasonable level.
0:41:21 > 0:41:24- Per property?- Per property.
0:41:24 > 0:41:29We were hoping about £100,000, each one would cost us, for each bungalow,
0:41:29 > 0:41:31so we've got 57 to play with in each one,
0:41:31 > 0:41:34but hopefully it'll be between 35 and 40.
0:41:35 > 0:41:40'David's given himself a generous year to complete the project.
0:41:40 > 0:41:44'As he has a double-glazing business and rental properties to manage,
0:41:44 > 0:41:47'he'll bring in a team of professionals to do the work.'
0:41:47 > 0:41:52At the start, I was very hands-on, but now, because of the size of us,
0:41:52 > 0:41:57I basically have to manage everything, so I'm just on a managerial status now.
0:41:57 > 0:42:00- Do you miss the hands-on stuff? - Yeah, I do.
0:42:00 > 0:42:04I miss the idea of going into customers' houses
0:42:04 > 0:42:07and the banter you have with customers. You don't have that anymore.
0:42:07 > 0:42:15So it's just guys that are all babies that you look after now.
0:42:15 > 0:42:18- Well, we look forward to seeing it. Congratulations.- Thank you.
0:42:18 > 0:42:21Well, what a doubly positive result for David.
0:42:21 > 0:42:25Not only did he get the properties for £55,000 less than he was willing to spend,
0:42:25 > 0:42:30but he discovers there's planning permission on them, which he didn't know about. Fantastic.
0:42:30 > 0:42:35A year to get them sorted out is a long time, and that's money which could be in the bank from rentals,
0:42:35 > 0:42:38so I hope it's quicker than that.
0:42:38 > 0:42:41You can find out how he gets on later in the show.
0:42:44 > 0:42:47Well, time has passed since we last saw our plucky buyers.
0:42:47 > 0:42:51- Ah. Have they been firing on all cylinders? - Let's go back and find out.
0:42:56 > 0:42:59'We're back in the Southampton suburb of Shirley,
0:42:59 > 0:43:05'where local lady Nicky bought this three-bed detached house at auction for £163,000.
0:43:05 > 0:43:10'She wanted to get into property developing and this was her first project.
0:43:10 > 0:43:14'The main problem with this renovation was obvious as soon as you entered.'
0:43:15 > 0:43:19- What about the smell of damp when you walk in? It really does hit you. - It does, yeah.
0:43:19 > 0:43:23There was a flood at Christmas but it wasn't discovered for a couple of weeks,
0:43:23 > 0:43:29so that's a result of that, so that'll be the first job, to dry the property out.
0:43:34 > 0:43:39'Once the damp was addressed, plus one or two other problems, Nicky's plan was to renovate the house
0:43:39 > 0:43:43'with her team of builders so she could use it as a rental machine.
0:43:43 > 0:43:47'We've returned three months later to see how the development has turned out.
0:43:57 > 0:44:01'Straight away, coming through the front door, you're no longer struck by the smell of damp
0:44:01 > 0:44:05'or a rotting interior, but by the fantastic transformation
0:44:05 > 0:44:08'Nicky and her team have managed here.
0:44:08 > 0:44:11'Under the stairs, which was basically dead space,
0:44:11 > 0:44:14'a downstairs toilet has been installed.
0:44:17 > 0:44:20'The large sitting room with its out-of-date fireplace
0:44:20 > 0:44:22'now looks as good as new.
0:44:23 > 0:44:26'And it's a similar story in the dining room.
0:44:30 > 0:44:34'Next to the dining room, the kitchen had really needed updating,
0:44:34 > 0:44:37'and Nicky has certainly delivered on that.'
0:44:39 > 0:44:45I decided to go for cream units and wooden worktops and also a wooden floor, as well.
0:44:45 > 0:44:49The tiles, I decided to go for the mosaic design
0:44:49 > 0:44:53because I was slightly restricted by the curve round here,
0:44:53 > 0:44:57and with small tiles, you get the flexibility to be able to tile that area.
0:44:57 > 0:45:03This is the window that was slightly raised to enable the sink to be put in,
0:45:03 > 0:45:08and that also gave the chance for more work surface, as well.
0:45:14 > 0:45:18'Moving upstairs, all three bedrooms have been given the same treatment.
0:45:24 > 0:45:28'And the window in the front bedroom, which was previously crumbling, has been repaired.
0:45:28 > 0:45:32'The bathroom has also been removed and entirely replaced.
0:45:35 > 0:45:37'Now there is a superb finish on the property
0:45:37 > 0:45:42'and no sign of any damp. How was that tackled?'
0:45:42 > 0:45:46There were two problems. There was the flooding at Christmas because of a burst pipe,
0:45:46 > 0:45:49so we ended up having to rebuild some of the walls,
0:45:49 > 0:45:52the kitchen floor had to be replaced.
0:45:52 > 0:45:57And also there was an issue with damp, which was mainly due to the driveway,
0:45:57 > 0:46:00which had constantly been built upon layer upon layer
0:46:00 > 0:46:03so it's actually obscuring the damp course.
0:46:03 > 0:46:06So that resulted in a few problems.
0:46:06 > 0:46:09The driveway had to be dug up and re-levelled.
0:46:09 > 0:46:13So, basically, it meant it was a bigger job than was first anticipated.
0:46:20 > 0:46:23'That damp problem turned out to be quite a headache,
0:46:23 > 0:46:27'but thanks to thorough investigation and a new damp-proof course, it's all sorted now.
0:46:27 > 0:46:30'But how did that affect the budget?'
0:46:31 > 0:46:36The budget actually ended up being £10,000 over the anticipated cost.
0:46:36 > 0:46:40Initially, I was looking at 35 to perhaps 37.
0:46:40 > 0:46:43The final figure was 47.
0:46:43 > 0:46:48A lot of that was the extra work that had to be done on the exterior with regards to the driveway
0:46:48 > 0:46:53and also the extra work as a consequence of the damp problem and the flooding.
0:46:53 > 0:46:58'An overspend of £10,000 is a bitter pill to swallow.
0:46:58 > 0:47:01'But as Nicky plans to keep the house as an investment,
0:47:01 > 0:47:04'getting all the work done properly was paramount
0:47:04 > 0:47:06'and has given her vital experience.'
0:47:07 > 0:47:13As a first project, it probably was quite adventurous and if I didn't have the support of the builders
0:47:13 > 0:47:18and the help and guidance that I did have, I undoubtedly would've struggled,
0:47:18 > 0:47:21so I was lucky to have the support I did.
0:47:24 > 0:47:28'Nicky bought the property for £163,000
0:47:28 > 0:47:31'and has spent 47 grand on the development,
0:47:31 > 0:47:33'adding up to a total £210,000.
0:47:33 > 0:47:36'So has her first venture been a success?
0:47:36 > 0:47:39'We asked two local estate agents for their appraisal.'
0:47:42 > 0:47:48It's a lovely size family property in a sought-after location and it's been decorated to a high standard.
0:47:48 > 0:47:53The bedroom sizes are ideal for the rental market and sharers.
0:47:53 > 0:47:57It would appeal to professionals who work at the hospital
0:47:57 > 0:47:59and young families.
0:48:02 > 0:48:06My first impression of the property from walking in, it's like a new home.
0:48:06 > 0:48:10It's like a show home. It's been fully refurbished and it looks very nice.
0:48:10 > 0:48:13I think, at this moment in time, this property is better off
0:48:13 > 0:48:17as a rental property. I think it'll generate a good income.
0:48:20 > 0:48:23'All positive. And it seems Nicky's idea of renting it out is spot on.
0:48:23 > 0:48:27'How much could she achieve?'
0:48:27 > 0:48:31I'd expect this property to achieve £995 per calendar month.
0:48:31 > 0:48:35I'd expect it to achieve around £1,000 per calendar month.
0:48:35 > 0:48:41I'm very pleased with those values, yes. It's above what I thought, to be honest. So that's very good news.
0:48:41 > 0:48:45'Bonus. Nicky's first project seems to be paying off.
0:48:45 > 0:48:49'On those numbers, she looks to be in for a yield of almost six percent.
0:48:49 > 0:48:53'In the current climate, you won't find a return like that by investing in a bank.
0:48:53 > 0:48:57'But if she were to sell, what kind of price could she be looking at?
0:48:57 > 0:49:01'Remember, her total outlay here is £210,000.'
0:49:03 > 0:49:08If I was to put this property on the market for sale, I would expect to achieve £235,000.
0:49:08 > 0:49:13If I was to put this property on the market for sale today, I'd put it on for £249,950.
0:49:13 > 0:49:17- I prefer the £249,950. - SHE LAUGHS
0:49:17 > 0:49:20No, really pleased with that valuation.
0:49:20 > 0:49:23# Smiley faces
0:49:23 > 0:49:26# Smiley faces
0:49:26 > 0:49:28'Nicky's got every reason to smile.
0:49:28 > 0:49:35'Despite her budget overspend, she could still make a pre-tax profit of between £25,000 and £40,000
0:49:35 > 0:49:38'if she changed her mind and decided to sell.
0:49:38 > 0:49:41'So, is she pleased with her first project?'
0:49:41 > 0:49:43I'm really pleased with how the project's gone
0:49:43 > 0:49:45and I'll definitely do another one.
0:49:45 > 0:49:49It's been a learning curve, as well, but thoroughly enjoyable.
0:49:55 > 0:49:59'We're back in Shettleston, a suburb of Glasgow,
0:49:59 > 0:50:04'where these two one-bedroom bungalows sold at auction for £95,000 to David.
0:50:04 > 0:50:09'He owns a glazing company but also develops property on the side.
0:50:09 > 0:50:14'David was so taken with them that he bought them without seeing how spacious they were inside.
0:50:14 > 0:50:17'But that wasn't his only surprise.
0:50:17 > 0:50:22'The properties came with planning permission to extend and convert the attic space.'
0:50:22 > 0:50:24Presumably, the planning was a big draw, as well.
0:50:24 > 0:50:31- I didn't know about that, either. - You didn't know about the planning? - Not at all. That was a bonus.
0:50:31 > 0:50:34- No kidding!- Once we got them through, it was a bonus.
0:50:34 > 0:50:37# Oh, lucky you
0:50:37 > 0:50:40# If it's really true, oh, lucky you
0:50:41 > 0:50:46'With planning permission already in place, David intended to turn these tired old bungalows
0:50:46 > 0:50:50'into three-bedroom family homes within a year.
0:50:50 > 0:50:54'But we've come back just six months later to see how things have moved on.
0:50:57 > 0:51:00'Well, clearly a lot of work has been carried out,
0:51:00 > 0:51:03'although the renovation is not yet complete.
0:51:03 > 0:51:07'The exterior of the properties used to be completely overgrown,
0:51:07 > 0:51:11'but that has now all been cleared in preparation for turf to be laid.
0:51:11 > 0:51:15'The old windows have been removed and new frames installed
0:51:15 > 0:51:18'ready to be glazed when the refurbishment is finished.
0:51:20 > 0:51:27'Inside, all the downstairs rooms have been stripped back to their bare walls and replastered.
0:51:27 > 0:51:34'The bathroom, which was totally outdated, has been removed and will all be modernised.
0:51:34 > 0:51:38'What used to be the lounge is now destined to be the dining room.
0:51:39 > 0:51:42'At the back of the house, off the dining room,
0:51:42 > 0:51:46'the old kitchen has made way for a new, more contemporary layout.'
0:51:49 > 0:51:54Downstairs, the houses are set out in exactly the same way.
0:51:54 > 0:52:00We have our bedroom number one here, there's the dining room here and the kitchen right behind,
0:52:00 > 0:52:03the toilet right behind me and the lounge here.
0:52:03 > 0:52:06We've redone all the plaster work in the house.
0:52:06 > 0:52:11The plumbing has been redone and all the electrics have been redone.
0:52:11 > 0:52:14'David's opened up the downstairs living space.
0:52:14 > 0:52:17'But it's upstairs that's seen the biggest change.'
0:52:17 > 0:52:19# Change
0:52:19 > 0:52:22# Nothing stays the same
0:52:22 > 0:52:25'He had planned to make these bungalows into three-bed houses,
0:52:25 > 0:52:29'but it seems he's managed to get four bedrooms in.
0:52:29 > 0:52:33'And all a very decent size.'
0:52:33 > 0:52:36# Nothing stays the same
0:52:36 > 0:52:39'With a bathroom, as well.
0:52:39 > 0:52:43'Extending into the roof has made a massive impact on the size
0:52:43 > 0:52:47'and, potentially, the value of these former bungalows.
0:52:47 > 0:52:49'But it wasn't all plain sailing.'
0:52:49 > 0:52:54The roofs were a slight problem, because we started doing them in the winter time
0:52:54 > 0:52:57and the snow stopped us from working.
0:52:57 > 0:53:04But the most drastic part of the build was getting the roofs up.
0:53:04 > 0:53:07Once they were up, everything was quite quick.
0:53:08 > 0:53:15'It's taken six months to get to this point and David reckons they should take another two months to complete.
0:53:15 > 0:53:18'How's he fared with the finances?'
0:53:18 > 0:53:21So far, we've spent about £40,000 on each property.
0:53:21 > 0:53:26I think another £17,000 on each property should be sufficient to get them finished off.
0:53:29 > 0:53:36'Wow! That's a total spend of £114,000 on renovations alone.
0:53:36 > 0:53:40'A definite challenge when managing the cash flow.'
0:53:40 > 0:53:43I think, because this is the first big refurbishment I've done,
0:53:43 > 0:53:49what we've learnt is you do need a massive cash flow to keep the builds going.
0:53:49 > 0:53:54Without that, they would come to a stop dead quick. They eat up the money.
0:53:55 > 0:54:00'This is a serious investment on David's part, and because of what's at stake,
0:54:00 > 0:54:04'he's changed his mind about what he'll do with the houses once they're finished.'
0:54:04 > 0:54:08Because we've done so much work in the house, I think renting the properties,
0:54:08 > 0:54:11if somebody came in and didn't treat it right,
0:54:11 > 0:54:14I wouldn't be happy at all, so I think we're going to sell them.
0:54:17 > 0:54:20'David bought the properties for £95,000
0:54:20 > 0:54:25'and estimates refurbishment costs of £114,000,
0:54:25 > 0:54:29'making his likely outlay about £209,000.
0:54:29 > 0:54:31'So, have the changes he's made
0:54:31 > 0:54:34'increased the value of these two bungalows?
0:54:35 > 0:54:39'We asked some local estate agents for their thoughts.'
0:54:40 > 0:54:45Amazing. Quite a transformation since when I was here previously.
0:54:45 > 0:54:52He's replastered all the walls, skirtings, fascias. It's looking good.
0:54:52 > 0:54:55Well, he's obviously decided to make the property larger,
0:54:55 > 0:54:58maybe go for a family home rather than something smaller to rent out,
0:54:58 > 0:55:00which is great because in the area,
0:55:00 > 0:55:05there's not a huge amount of properties of this size, so he's probably gone for the right choice.
0:55:07 > 0:55:12The properties increased in size from one bedroom to four bedrooms
0:55:12 > 0:55:17and, surprisingly, the rooms are very spacious
0:55:17 > 0:55:19and a very good family size.
0:55:19 > 0:55:23At the moment, there is a reasonable amount of work to complete them,
0:55:23 > 0:55:26including bathrooms and windows,
0:55:26 > 0:55:29but apart from that, it's mainly cosmetic.
0:55:31 > 0:55:34'So, once the finishing touches have been done,
0:55:34 > 0:55:38'what kind of price could David expect to achieve when he puts them up for sale?'
0:55:38 > 0:55:43Upon completion, I think the resale of these properties would be
0:55:43 > 0:55:47between £145,000 and £150,000 each.
0:55:47 > 0:55:49When the properties are completed,
0:55:49 > 0:55:55I think, in the current market conditions and subject to a satisfactory home report,
0:55:55 > 0:55:59they would each fetch in the region of £155,000.
0:55:59 > 0:56:04I think that's exactly what I was looking for. Relieved.
0:56:04 > 0:56:08'No wonder he's relieved. Those valuations could give David
0:56:08 > 0:56:15'a pre-tax profit of between £81,000 and £101,000, minus the usual selling expenses.'
0:56:16 > 0:56:19# Go on, take the money and run
0:56:21 > 0:56:24# Go on, take the money and run
0:56:24 > 0:56:28'With the amount of capital riding on this development,
0:56:28 > 0:56:31'David has decided to sell rather than rent out these properties.
0:56:31 > 0:56:39'But even with the estate agents' rental values at between £650 and £750 each per calendar month,
0:56:39 > 0:56:45'David's just satisfied that he has certainly transformed these old bungalows.'
0:56:45 > 0:56:50It's really nice to see them. From when I was younger, they had gone down to such a bad standard
0:56:50 > 0:56:55and now they're starting to look really nice again. It gives you a wee breath of fresh air.
0:56:57 > 0:57:03- We'll see you again soon when more brave bidders hit the auction room. - See you then.- Goodbye.- Goodbye.
0:57:04 > 0:57:08Subtitles by Red Bee Media Ltd
0:57:08 > 0:57:12E-mail subtitling@bbc.co.uk
0:57:12 > 0:57:12.