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With the ups and downs of the property market, | 0:00:02 | 0:00:04 | |
you have to trust your instincts. | 0:00:04 | 0:00:06 | |
Nowhere is this more true than in the auction room. | 0:00:06 | 0:00:09 | |
So join us now as we take the lottery out of property under the hammer. | 0:00:09 | 0:00:13 | |
Buying at auction doesn't have to be scary. | 0:00:38 | 0:00:41 | |
If you do your research and you stick to your limit, you can bid with confidence. | 0:00:41 | 0:00:45 | |
Let's meet some buyers who hopefully did that. | 0:00:45 | 0:00:48 | |
But did they bag a bargain or get more than they bargained for? | 0:00:48 | 0:00:52 | |
Let's take a look at what they bought. | 0:00:52 | 0:00:54 | |
'This five-bedroom house in Cornwall is a real hotchpotch of badly-fitting fixtures.' | 0:00:54 | 0:01:01 | |
There you go, that just about sums this house up. | 0:01:01 | 0:01:03 | |
'In Hampshire, this three-bed detached looked a bargain from outside, but inside...' | 0:01:05 | 0:01:11 | |
Rather worryingly, the wallpaper's peeling off. | 0:01:11 | 0:01:15 | |
'And there was an opportunity in Glasgow to buy two bungalows together in one lot.' | 0:01:15 | 0:01:21 | |
Big question is, will it be two for the price of one or double the trouble? | 0:01:21 | 0:01:25 | |
'All these properties are being sold at auction | 0:01:27 | 0:01:29 | |
'and we will find out who bought them and what they paid for them when they went under the hammer.' | 0:01:29 | 0:01:35 | |
'With its beautiful beaches and countryside, | 0:01:42 | 0:01:45 | |
'the Southwest of England is a highly desirable part of the UK to live. | 0:01:45 | 0:01:50 | |
'Many people would love to have a place down here | 0:01:50 | 0:01:52 | |
'and in the past decade, a high number of buyers have purchased properties as second homes here. | 0:01:52 | 0:01:59 | |
'But there has been a down side.' | 0:01:59 | 0:02:02 | |
The influx of second-home owners buying properties in Cornwall | 0:02:02 | 0:02:07 | |
has pushed prices out of the reach of many locals. | 0:02:07 | 0:02:09 | |
But not here in Delabole, where I think there was a fantastic opportunity for somebody. | 0:02:09 | 0:02:14 | |
This is it. Guide price of £125,000 to £150,000. | 0:02:14 | 0:02:18 | |
It's a five-bedroom detached house. You can't argue with that, can you? | 0:02:18 | 0:02:23 | |
# I'd call that a bargain | 0:02:23 | 0:02:25 | |
# The best I ever had | 0:02:25 | 0:02:29 | |
'That is a lot of house for the price. | 0:02:29 | 0:02:32 | |
'From the front, it doesn't look too bad, either. But wait, there's more. | 0:02:32 | 0:02:36 | |
'By the looks of it, you also get a free dining table and chairs.' | 0:02:36 | 0:02:39 | |
# The best I ever had | 0:02:39 | 0:02:44 | |
You don't know what you're going to find on the inside of a house like this. | 0:02:44 | 0:02:49 | |
Yes, very grand from the outside, but what's been done with the internal layout? | 0:02:49 | 0:02:53 | |
Don't know yet, but a fairly cramped entrance, which I'm not too keen on. | 0:02:53 | 0:02:58 | |
Through to a front sitting room area there. | 0:02:58 | 0:03:01 | |
Making use of the local slate with the fireplaces. | 0:03:01 | 0:03:04 | |
And then this. What is going on? They've taken away the enclosure for the under-stairs cupboard | 0:03:04 | 0:03:09 | |
and it's all open-plan, but you've got this pillar. It just doesn't work at all. All a bit strange. | 0:03:09 | 0:03:14 | |
Through to another bit of the house that looks like it's kind of been, well, manked about with. | 0:03:14 | 0:03:22 | |
Two fireplaces in this room. The floors are different levels, which doesn't work. | 0:03:22 | 0:03:28 | |
I like the fact that they're stripped, but it just feels like somebody's just had a go | 0:03:28 | 0:03:33 | |
and not really thought it through before they started. However, what's that? | 0:03:33 | 0:03:37 | |
'Yes, I know it has a garden, but it's not just any garden. | 0:03:42 | 0:03:45 | |
'It's a huge family one. | 0:03:45 | 0:03:47 | |
'With a massive car-parking area to boot.' | 0:03:50 | 0:03:52 | |
# Looking through the window | 0:03:52 | 0:03:56 | |
'So, plenty of room to extend or maybe even develop.' | 0:03:56 | 0:04:01 | |
So, great news out there, but unfortunately, back in the house, the bad news continues. | 0:04:02 | 0:04:07 | |
The kitchen is just a disaster. | 0:04:07 | 0:04:10 | |
For a house like this, this should be the focal point. It should be big and family-friendly. | 0:04:10 | 0:04:15 | |
As it is, disastrous units and this hotchpotch feeling continues. | 0:04:15 | 0:04:20 | |
I mean, look at this. A main beam going across here. | 0:04:20 | 0:04:24 | |
You need to do something here. You need to build it out into that extension, | 0:04:24 | 0:04:28 | |
you need to open up these walls and create that central focus for the house and it's got to be here. | 0:04:28 | 0:04:34 | |
# It'll be just like starting over | 0:04:34 | 0:04:39 | |
'Upstairs, there are four main bedrooms. | 0:04:39 | 0:04:42 | |
'A box room. | 0:04:46 | 0:04:48 | |
'And a bathroom. | 0:04:50 | 0:04:52 | |
'All are in need of upgrading and potentially some repair work, | 0:04:52 | 0:04:56 | |
'if that damp's anything other than a few loose tiles or a problem with the flashing. | 0:04:56 | 0:05:01 | |
# Starting over | 0:05:01 | 0:05:03 | |
'But something is still not quite right.' | 0:05:03 | 0:05:07 | |
So, to sum up, upstairs, the kind of boxy feeling continues. | 0:05:07 | 0:05:11 | |
Although, interestingly, it doesn't feel like it's been messed around up here. | 0:05:11 | 0:05:15 | |
Again, there's no focal point, there's no master bedroom. | 0:05:15 | 0:05:18 | |
Downstairs, you need the kitchen to be a focal point. Upstairs, you need a master bedroom. | 0:05:18 | 0:05:22 | |
But I'm not sure how you'd create that. | 0:05:22 | 0:05:25 | |
'This property will need some thought putting into it, | 0:05:28 | 0:05:31 | |
'so hiring an architect could be money well spent. | 0:05:31 | 0:05:35 | |
'Also, because there is no significant industry in this predominantly residential area, | 0:05:35 | 0:05:39 | |
'rental yields are very low, so any buyer will be purchasing the house for occupation or resale. | 0:05:39 | 0:05:45 | |
'Either way, maximising the potential here will be paramount. | 0:05:46 | 0:05:50 | |
'We asked the auctioneer who sold it for his opinion. | 0:05:53 | 0:05:56 | |
As well as the plain, obvious, great big house, | 0:05:58 | 0:06:02 | |
there's quite a lot of land out the back, and if you look around at the neighbouring properties, | 0:06:02 | 0:06:07 | |
there's new houses being built set back, so you might get yourself a second dwelling, | 0:06:07 | 0:06:11 | |
which wouldn't knock an awful lot off the mother house, | 0:06:11 | 0:06:15 | |
cos there's quite a lot of land. | 0:06:15 | 0:06:17 | |
'A plot of land this size goes for around £80,000 around here. | 0:06:19 | 0:06:24 | |
'Developing on it might only devalue the property by around 20 grand, | 0:06:24 | 0:06:28 | |
'so you could make a useful increase in your total value if you did. | 0:06:28 | 0:06:33 | |
'So, even without this, how much could this realistically be sold on for?' | 0:06:33 | 0:06:39 | |
If you put this in apple-pie order, made the best of it, | 0:06:39 | 0:06:43 | |
probably 265, 275, which is a funny price range | 0:06:43 | 0:06:48 | |
when the market's hard work, | 0:06:48 | 0:06:51 | |
because it's a job to tug things through 250. | 0:06:51 | 0:06:54 | |
Ha! Well, there you go. That just about sums this house up. | 0:06:56 | 0:07:00 | |
The fact that the door, when you open it, goes straight into the stairs. | 0:07:00 | 0:07:03 | |
They didn't bother to measure it before they fitted it. This whole house has not been thought through. | 0:07:03 | 0:07:09 | |
But whoever takes it on has the potential to turn this into a beautiful house. | 0:07:09 | 0:07:13 | |
Let's find out who bought it at the auction. | 0:07:13 | 0:07:15 | |
Delabole. Big detached property. | 0:07:15 | 0:07:18 | |
Five beds. Big chunk of ground at the back. | 0:07:18 | 0:07:20 | |
We know it's 150, don't we? Yes, we do. | 0:07:20 | 0:07:23 | |
150. 55. 165. 170. | 0:07:23 | 0:07:27 | |
175. 180? | 0:07:27 | 0:07:31 | |
180. 185. | 0:07:31 | 0:07:33 | |
190? No, 190 I want. | 0:07:34 | 0:07:36 | |
185. | 0:07:36 | 0:07:38 | |
188. 188. | 0:07:38 | 0:07:40 | |
190. At 190. | 0:07:40 | 0:07:42 | |
At 190. It's got to make 200, hasn't it? At 190. | 0:07:42 | 0:07:44 | |
At 190. Stood has it. Both sat are out. | 0:07:44 | 0:07:48 | |
At 190. That's a lot of house. | 0:07:48 | 0:07:51 | |
At 190. 190 once. | 0:07:51 | 0:07:54 | |
190 twice. | 0:07:54 | 0:07:56 | |
At 190. Falling short of 200, but at 190, sure and done. | 0:07:56 | 0:08:00 | |
At 190. You both missed it. Well done, sir. That's a lot of property. | 0:08:00 | 0:08:05 | |
'That winning bid of £190,000 came from Lee. | 0:08:05 | 0:08:10 | |
'He's bought this house with his partner, Andrea. | 0:08:13 | 0:08:16 | |
'They live locally and have wanted to buy together for some time. | 0:08:16 | 0:08:20 | |
'Lee's an electrician and Andrea is a research chemist. | 0:08:23 | 0:08:27 | |
'I met up with them to find out more.' | 0:08:27 | 0:08:30 | |
-Lee, Andrea, well done. -Thank you very much. | 0:08:32 | 0:08:35 | |
-Congratulations. It's a lovely house, actually. -Yeah, we think so. | 0:08:35 | 0:08:39 | |
-Why did you want to buy it? -Erm, I've lived in the village all my life, | 0:08:39 | 0:08:43 | |
wanted to stay in the village and this seemed an ideal opportunity to do that. | 0:08:43 | 0:08:48 | |
-In the future, maybe have some children, looking at it as a big family home. -Right. | 0:08:48 | 0:08:52 | |
And what about your background? Are you from the village? | 0:08:52 | 0:08:55 | |
I've been in Cornwall about ten years. | 0:08:55 | 0:08:58 | |
I came down here for my first job after university | 0:08:58 | 0:09:02 | |
and I really like Cornwall and I want to stay here. | 0:09:02 | 0:09:05 | |
-And tell me about you two. How long have you been together? -We've been together four years now. | 0:09:05 | 0:09:10 | |
Met at the local village carnival. | 0:09:10 | 0:09:13 | |
-Really? -Yeah. We had a float. So, yeah. | 0:09:13 | 0:09:16 | |
-Tell me more about that. -I play football for the village | 0:09:16 | 0:09:19 | |
-and we do a carnival float, and I was a pirate, wasn't I? -Yep. | 0:09:19 | 0:09:24 | |
And I had one too many and we got chatting and the rest is history. | 0:09:24 | 0:09:29 | |
The first time you met, he was wearing a pirate outfit? | 0:09:29 | 0:09:32 | |
-Yeah, I pulled a pirate. -Pulled a pirate! | 0:09:32 | 0:09:35 | |
# I am a pirate | 0:09:35 | 0:09:37 | |
# You are a princess | 0:09:37 | 0:09:39 | |
# We could sail the seven seas | 0:09:39 | 0:09:43 | |
'Ahh, shiver me timbers! Love at first sight through an eye patch! | 0:09:43 | 0:09:48 | |
'And it seems these two have had an eye on this house for a while now.' | 0:09:48 | 0:09:52 | |
So what was it about this house that you liked? Did you know the house? | 0:09:52 | 0:09:56 | |
I've got to be honest, we've driven by two or three times in the months before | 0:09:56 | 0:10:01 | |
-and said, "Oh, if only that came on the market." -Really? | 0:10:01 | 0:10:04 | |
-Yeah. -No! -That's the honest truth. | 0:10:04 | 0:10:06 | |
-You picked this particular house out? -Yeah, we'd driven by it and said, "That's a really nice house, | 0:10:06 | 0:10:13 | |
-"that'd suit us down to the ground." -No! | 0:10:13 | 0:10:15 | |
I was at work one day and Ange rang me up. "You'll never believe it, there's an auction sign up!" | 0:10:15 | 0:10:20 | |
-Wow. So it's meant to be. -Hopefully, yeah. -You made it happen. | 0:10:20 | 0:10:25 | |
'What's also meant to be is some drastic changes to the look of the place.' | 0:10:27 | 0:10:31 | |
-There is a bit of work to be done. -Yes, there certainly is. | 0:10:33 | 0:10:36 | |
-A little bit more than we thought. I think you agree, Ange. -Yeah. | 0:10:36 | 0:10:39 | |
We'll change the downstairs layout, that's what we're hoping to do. | 0:10:39 | 0:10:43 | |
And we'll have to get a structural engineer to have a look cos of the walls. | 0:10:43 | 0:10:47 | |
But open it up, really. It's very boxy. | 0:10:47 | 0:10:50 | |
We'd like to open the downstairs layout, kitchen-diner, and just get a bit more light in. | 0:10:50 | 0:10:55 | |
'I couldn't agree more. As Lee's an electrician and both of them are prepared to do work themselves, | 0:11:00 | 0:11:06 | |
'they should manage on their initial £20,000 budget pretty well. | 0:11:06 | 0:11:11 | |
'But first they need to agree on how to spend it.' | 0:11:11 | 0:11:14 | |
-Do you always agree on what you're going to do? -Eventually, we usually come to some kind of compromise. | 0:11:15 | 0:11:22 | |
We talk about it and then we go Andrea's way. That's what happens. | 0:11:22 | 0:11:25 | |
-But it starts out that you've got different views? -Yeah, usually. | 0:11:25 | 0:11:29 | |
-What are your views? -Well, it's little things, like the kitchen. | 0:11:29 | 0:11:35 | |
Yeah, it's the budget, what to spend on what part of the house, really. | 0:11:35 | 0:11:39 | |
It's not major disagreement, it's just niggly little things that we disagree on. Like the doors. | 0:11:39 | 0:11:44 | |
-She likes the old-fashioned doors. -I like the original 1930s doors. -Absolutely. | 0:11:44 | 0:11:48 | |
-And I'm not so keen. -THEY LAUGH -But, again, it's minor. | 0:11:48 | 0:11:53 | |
'Compromise could be the name of the game here, | 0:11:55 | 0:11:58 | |
'but they shouldn't rush into making decisions | 0:11:58 | 0:12:01 | |
'that could lead them into deep water.' | 0:12:01 | 0:12:03 | |
Give me an idea of how long it's going to take to do what you need to do. | 0:12:03 | 0:12:07 | |
We've put a minimum of six months. Four to six months to get liveable. | 0:12:07 | 0:12:12 | |
We're lucky, we're not in a real rush to get in, but we'd like to get it done as soon as possible. | 0:12:12 | 0:12:17 | |
Yeah. This is going to be our home for the next five to ten years, so there's no hurry. | 0:12:17 | 0:12:23 | |
We're not going to turn it round for a profit. | 0:12:23 | 0:12:26 | |
Great. Congratulations to you both. | 0:12:26 | 0:12:28 | |
-Good luck with it. -Thank you. -I look forward to seeing how you get on turning this into a family home. | 0:12:28 | 0:12:34 | |
Well, it's great that Lee and Andrea are locals and they've actually bought this place to live in. | 0:12:35 | 0:12:40 | |
Profit doesn't come into the equation. But when they're doing up this place, they have to be careful. | 0:12:40 | 0:12:46 | |
It's one of those ones where you just sit down and plan very, very carefully before you start, | 0:12:46 | 0:12:51 | |
otherwise their £20,000 budget will soon disappear. | 0:12:51 | 0:12:55 | |
Find out how they get on later in the show. | 0:12:55 | 0:12:57 | |
'I'm in Shirley in Southampton, a residential and shopping area close to the city centre. | 0:13:02 | 0:13:08 | |
'It's the site of Southampton General, a large teaching hospital, | 0:13:08 | 0:13:12 | |
'and home to the university's School of Medicine. | 0:13:12 | 0:13:15 | |
'The question is, will today's property here be a major operation?' | 0:13:15 | 0:13:19 | |
When the catalogue said the property was near to the hospital, they weren't kidding, | 0:13:20 | 0:13:25 | |
because it is literally there at the end of the street, which means I'm already thinking rental | 0:13:25 | 0:13:30 | |
with that steady stream of doctors and nurses keen for a short commute. | 0:13:30 | 0:13:33 | |
The house itself is a three-bedroom detached | 0:13:33 | 0:13:36 | |
and it had a guide of just £150,000. | 0:13:36 | 0:13:40 | |
'I'm sure any medic would love to be just a few steps from home after a long shift. | 0:13:41 | 0:13:46 | |
'The house is on a fairly busy road, as you'd imagine, leading up to the hospital. | 0:13:46 | 0:13:50 | |
There's off-street parking for at least two cars, which solves that problem. | 0:13:50 | 0:13:54 | |
'The property itself, well, it looks like it could be in need of a few stitches.' | 0:13:54 | 0:14:00 | |
# Dress me up in stitches, it's now or never | 0:14:00 | 0:14:04 | |
# Tired of wearing black and blue | 0:14:04 | 0:14:07 | |
Oh, the first thing that hits you when you walk in this door is the smell of damp. | 0:14:08 | 0:14:14 | |
But I'm going to forget that, because what a lovely surprise. | 0:14:14 | 0:14:17 | |
Look at this wonderful open hallway, you've got lovely wide steps here. | 0:14:17 | 0:14:22 | |
But, rather worryingly, the wallpaper's peeling off, | 0:14:22 | 0:14:26 | |
you've got walls wet to the touch, so you've got to take on board all of that. | 0:14:26 | 0:14:31 | |
But moving along the hallway, you've got this spacious space to put a downstairs loo. | 0:14:31 | 0:14:36 | |
That's all a big tick in the right box. And, of course, through here, | 0:14:36 | 0:14:40 | |
the kitchen is not a bad space, | 0:14:40 | 0:14:42 | |
so you wouldn't necessarily need to knock through | 0:14:42 | 0:14:46 | |
to borrow space from this room, the dining room. You've got a lovely square shape here. | 0:14:46 | 0:14:50 | |
I'd be inclined to keep this as it is. Nice views out to the garden. | 0:14:50 | 0:14:55 | |
All in all, a good, substantial family house | 0:14:55 | 0:14:59 | |
with good downstairs living space. I really like it. | 0:14:59 | 0:15:02 | |
'Yes, I like the space. I like the deep bay in the massive front room and the curve of the kitchen walls, | 0:15:06 | 0:15:12 | |
'but I don't like the smell of damp. | 0:15:12 | 0:15:14 | |
'As you walk around, you can see more and more signs of wet all over the walls.' | 0:15:14 | 0:15:18 | |
Upstairs, what a lovely surprise. | 0:15:20 | 0:15:23 | |
This landing is wonderfully spacious. | 0:15:23 | 0:15:26 | |
But more than that, these three bedrooms are all good doubles, | 0:15:26 | 0:15:30 | |
which is unusual in a 1930s layout. | 0:15:30 | 0:15:33 | |
However, in this master bedroom, you've got very worrying cracks on either side of this bay. | 0:15:33 | 0:15:39 | |
I've seen this before on houses of this era | 0:15:39 | 0:15:41 | |
and it can be caused by badly-fitted UPVC double-glazing, | 0:15:41 | 0:15:45 | |
which pushes this bay out and down. | 0:15:45 | 0:15:48 | |
But just because you know what's caused these issues, doesn't mean they're cheap to fix. | 0:15:48 | 0:15:53 | |
So I'd get some expert advice ASAP. | 0:15:53 | 0:15:56 | |
'I think this place is going to need more than a quick bandage. | 0:15:59 | 0:16:03 | |
'The wiring certainly looks shot to pieces | 0:16:03 | 0:16:05 | |
'and there are hairline cracks in quite a number of the walls. | 0:16:05 | 0:16:08 | |
'I get the feeling this bathroom could do with being ripped out and started again. | 0:16:08 | 0:16:12 | |
'There are some nice features lurking, such as the fireplace in the rear bedroom. | 0:16:12 | 0:16:17 | |
'But a closer examination of the legal pack reveals there's something else lurking that's more worrying.' | 0:16:17 | 0:16:25 | |
It's a bit of a weird one in the catalogue description, | 0:16:25 | 0:16:28 | |
because it says this property has an unregistered freehold title. So what does that actually mean? | 0:16:28 | 0:16:34 | |
Well, it may surprise you that around a fifth of freehold titles aren't registered, | 0:16:34 | 0:16:39 | |
even though it was introduced way back in Victorian times | 0:16:39 | 0:16:42 | |
and it's been compulsory from 1990. | 0:16:42 | 0:16:45 | |
But with regards to this house, it means you must make your own investigations | 0:16:45 | 0:16:49 | |
into the seller's rights to sell the property. | 0:16:49 | 0:16:51 | |
You'll have to trawl through the deeds, check for any covenants | 0:16:51 | 0:16:55 | |
and ensure you know the boundaries of the land. | 0:16:55 | 0:16:57 | |
Essentially, you have to cover your own back and make sure you know what you're buying. | 0:16:57 | 0:17:02 | |
Now, it's not necessarily a deal breaker, but it's a hassle | 0:17:02 | 0:17:06 | |
and it could make everything just that little bit more complicated. | 0:17:06 | 0:17:11 | |
# It's a complicated situation | 0:17:11 | 0:17:16 | |
# It's a complicated situation, mama | 0:17:16 | 0:17:21 | |
'So, complicated and in need of complete renovation. | 0:17:21 | 0:17:25 | |
'This is getting more demanding by the minute. | 0:17:25 | 0:17:28 | |
'Still, you get a lot of house for the money | 0:17:28 | 0:17:30 | |
'and that location near the hospital is hard to beat. | 0:17:30 | 0:17:33 | |
'I asked along a local estate agent.' | 0:17:33 | 0:17:36 | |
I think it'll appeal to a multitude of buyers. | 0:17:36 | 0:17:38 | |
In its current state, it's going to probably be more investors, | 0:17:38 | 0:17:42 | |
in which case, once they've refurbished the property, | 0:17:42 | 0:17:45 | |
they'll let it out or sell it. | 0:17:45 | 0:17:47 | |
'Right, let's talk numbers.' | 0:17:47 | 0:17:50 | |
As I see this property today, it's probably worth about £160,000. | 0:17:50 | 0:17:55 | |
That is allowing for some form of profit margin once it's refurbished. | 0:17:55 | 0:17:58 | |
In terms of putting it back to market, | 0:17:58 | 0:18:01 | |
I think the figure's probably around £225,000, but you might want to try for a little bit more. | 0:18:01 | 0:18:06 | |
'How about letting it out?' | 0:18:07 | 0:18:10 | |
Renting this property, you're probably looking at around £850 per calendar month. | 0:18:10 | 0:18:14 | |
With a few nips and tucks, this property near the hospital could be a fantastic investment. | 0:18:15 | 0:18:20 | |
Yes, it's got its issues, and that unregistered freehold is not to be ignored, | 0:18:20 | 0:18:25 | |
but someone could be in for a good profit here. | 0:18:25 | 0:18:28 | |
Let's find out who's ready to resuscitate this lot at the auction. | 0:18:28 | 0:18:32 | |
OK, lot number 15. This is a three-bedroom detached house | 0:18:33 | 0:18:38 | |
in need of refurbishment and I'm going to start the bidding | 0:18:38 | 0:18:42 | |
at just £140,000. | 0:18:42 | 0:18:45 | |
Thank you. 140 I do have on the back there. 140. | 0:18:45 | 0:18:49 | |
142 I have down here in the front. | 0:18:49 | 0:18:52 | |
144 we have. 146? 146 here. | 0:18:52 | 0:18:55 | |
148? 148. Thank you. | 0:18:55 | 0:18:58 | |
150? 150 seated. | 0:18:58 | 0:19:00 | |
152? 152 I have. | 0:19:00 | 0:19:02 | |
154 seated here at the front. 156? | 0:19:02 | 0:19:06 | |
156. 158 here? 158 here. | 0:19:06 | 0:19:10 | |
160, sir? 160 we have. | 0:19:10 | 0:19:13 | |
2? 162. | 0:19:13 | 0:19:14 | |
I'll give you a half if it's going to help you. £500. | 0:19:14 | 0:19:17 | |
You going to walk away from it for £500? | 0:19:17 | 0:19:20 | |
I've got 162. 162,500. | 0:19:20 | 0:19:23 | |
Shaking his head down here in the front at me. | 0:19:23 | 0:19:26 | |
162 and a half. 163, thank you, in the room. | 0:19:26 | 0:19:29 | |
163 right-hand side. | 0:19:29 | 0:19:32 | |
164? No? It's 163 with a fresh bid. | 0:19:32 | 0:19:36 | |
163 I have, then. Once. | 0:19:36 | 0:19:40 | |
163 twice. | 0:19:40 | 0:19:43 | |
163,000 with you, then. Third and final time. | 0:19:43 | 0:19:48 | |
Sold. Good value. 163. Well done, madam. Your number, please. | 0:19:48 | 0:19:53 | |
'That successful bid of £163,000 came from Nicky, | 0:19:54 | 0:19:58 | |
'a full-time mum who lives in the area. | 0:19:58 | 0:20:01 | |
'I braved the damp dining room again to find out her plans.' | 0:20:02 | 0:20:07 | |
-Nicky, lovely to meet you today. -Hi. -Well done. Congratulations. | 0:20:07 | 0:20:11 | |
-Thank you. -Are you new to this game? Is this the first time? | 0:20:11 | 0:20:14 | |
-Completely, yes. -First time you've ever bought anything at auction? -Yes. Never been to an auction. | 0:20:14 | 0:20:19 | |
Never done work on a house before. So it's all very new. | 0:20:19 | 0:20:23 | |
-Have you bought this for a bit of a project? -Yes, and an investment. | 0:20:23 | 0:20:27 | |
Primarily as an investment, but also I thought it'd be a good challenge. | 0:20:27 | 0:20:31 | |
-So this isn't a house for you to fall in love with and move into? -No. | 0:20:31 | 0:20:35 | |
So I've got to be careful when I do it up that I don't make it too personal. | 0:20:35 | 0:20:38 | |
So what was it that you loved about this house enough to want to buy it? | 0:20:38 | 0:20:42 | |
Erm, because I was buying it purely for an investment, | 0:20:42 | 0:20:45 | |
location was the main thing, really, being close to the hospital. | 0:20:45 | 0:20:51 | |
I think it has a lot of character, as you walk in, it's got a lovely airy feel. It just seemed right. | 0:20:51 | 0:20:58 | |
'It didn't take Nicky long to make up her mind. Just one viewing, in fact. | 0:21:01 | 0:21:05 | |
'She went on her own, without any expert eyes for a second opinion. | 0:21:05 | 0:21:09 | |
'I hope she's taken into account all the work that needs doing.' | 0:21:09 | 0:21:13 | |
So let's talk about the down sides of this house. | 0:21:13 | 0:21:16 | |
What problems may be worrying you? | 0:21:16 | 0:21:18 | |
Structurally, it's fine. There's a lot of work to do internally | 0:21:18 | 0:21:24 | |
and outside with the back and front areas. | 0:21:24 | 0:21:28 | |
So there's nothing that really concerns me. | 0:21:28 | 0:21:31 | |
It's just quite a lot of work to get done. | 0:21:31 | 0:21:34 | |
-What about the smell of damp when you walk in? It really does hit you. -It does, yes. | 0:21:34 | 0:21:38 | |
There was a flood at Christmas, but it wasn't discovered for a couple of weeks, | 0:21:38 | 0:21:42 | |
so that's a result of that. | 0:21:42 | 0:21:46 | |
That'll be the first job, to dry the property out. | 0:21:46 | 0:21:49 | |
Upstairs in the bedroom, it looks like the bay's dropping, you've got cracks. | 0:21:49 | 0:21:53 | |
Is that to do with the instalment of the windows? | 0:21:53 | 0:21:55 | |
Yes, I believe it is. I think it was when they put the replacement window in the bedroom | 0:21:55 | 0:22:01 | |
that they didn't prop up the bay properly, so it's dropped slightly. | 0:22:01 | 0:22:06 | |
But I understand it's not a problem structurally at all, it just needs levelling out. | 0:22:06 | 0:22:11 | |
'Nicky is also going to get the unregistered freehold title sorted out, | 0:22:14 | 0:22:18 | |
'which will tidy up the property's paperwork. | 0:22:18 | 0:22:22 | |
'What are her plans regarding the renovation?' | 0:22:22 | 0:22:24 | |
Internally, all ceilings will be skimmed, all the walls will be replastered, | 0:22:24 | 0:22:30 | |
new kitchen, bathroom, rewiring. | 0:22:30 | 0:22:34 | |
And then outside, the pointing needs doing, damp course and quite a bit of landscaping, front and back. | 0:22:34 | 0:22:41 | |
-So, yeah, quite a bit to keep me busy. -Quite a lot to be getting on with. | 0:22:41 | 0:22:45 | |
-What sort of look are you going for? -I think where it's got a lot of character, | 0:22:45 | 0:22:50 | |
I want to try and balance it between still keeping that | 0:22:50 | 0:22:55 | |
but bringing in some quite modern ideas, as well. So really striking a balance. | 0:22:55 | 0:23:01 | |
'Nicky wants to rent the house out to a family eventually | 0:23:03 | 0:23:06 | |
'and has a budget of around £35,000 to £37,000 for the makeover. | 0:23:06 | 0:23:10 | |
'She's hiring a team of builders who'll live and work on site | 0:23:10 | 0:23:14 | |
'and hopes it'll be finished within six to eight weeks.' | 0:23:14 | 0:23:17 | |
Who will project manage this? Who is going to be casting their beady eye over the work? | 0:23:24 | 0:23:28 | |
Well, I'll be involved in a lot of decisions, | 0:23:28 | 0:23:31 | |
but somebody else is actually going to be really leading the project. | 0:23:31 | 0:23:36 | |
But with regards to type of flooring and bathroom and kitchens, | 0:23:36 | 0:23:42 | |
that would be me. | 0:23:42 | 0:23:44 | |
So you've got all the fun stuff to do! That's not fair! | 0:23:44 | 0:23:47 | |
-All the hard work is left to somebody else! -That's right! | 0:23:47 | 0:23:50 | |
-It's been lovely to meet you. Good luck with this. -Thank you. | 0:23:50 | 0:23:53 | |
-I really like this house and I'm sure you're going to do a great job. -That's very kind. -Thank you. | 0:23:53 | 0:23:58 | |
I love this house, despite its damp, and I think Nicky has bought well. | 0:24:00 | 0:24:04 | |
It is a big one, though, for a first project. | 0:24:04 | 0:24:07 | |
I hope she's properly prepared. Find out how she gets on later in the programme. | 0:24:07 | 0:24:13 | |
'Coming up, I see that these little bungalows in Glasgow are really pretty spacious, but...' | 0:24:14 | 0:24:19 | |
In terms of the internal layout, it's disastrous! | 0:24:19 | 0:24:23 | |
'We return to Hampshire to find the damp problem was worse than expected.' | 0:24:23 | 0:24:28 | |
We ended up having to rebuild some walls, the kitchen floor had to be replaced. | 0:24:28 | 0:24:34 | |
'But first, in Cornwall, the schedule's been ripped up.' | 0:24:35 | 0:24:39 | |
We initially said six months. | 0:24:39 | 0:24:41 | |
But maybe that was a little bit optimistic. | 0:24:41 | 0:24:43 | |
'We're back in Delabole, Cornwall, where local couple Lee and Andrea | 0:24:50 | 0:24:55 | |
'bought this five-bed detached house at auction for £190,000. | 0:24:55 | 0:25:00 | |
'And it seemed as if fate was playing its part.' | 0:25:00 | 0:25:04 | |
We'd driven by two or three times and said, "Oh, if only that came on the market, | 0:25:04 | 0:25:09 | |
-"it would suit us down to the ground." -No! | 0:25:09 | 0:25:11 | |
I was at work one day and Ange rang me up, "You'll never believe it, there's an auction sign up." | 0:25:11 | 0:25:16 | |
-Wow. So it's meant to be. -Hopefully, yeah. -You made it happen. | 0:25:16 | 0:25:21 | |
'The plan for this place was to redesign the interior, which was a boxy mish-mash of rooms | 0:25:22 | 0:25:28 | |
'and ill-fitted fixtures, and turn it into a spacious family home. | 0:25:28 | 0:25:33 | |
'We've returned almost two years later | 0:25:34 | 0:25:37 | |
'to find out how the story has progressed. | 0:25:37 | 0:25:40 | |
'Although not quite complete yet, the transformation is amazing. | 0:25:42 | 0:25:48 | |
'The sitting room originally had two fireplaces, | 0:25:48 | 0:25:51 | |
'but now has one in the centre of the room. | 0:25:51 | 0:25:54 | |
'At the back, Lee and Andrea have built a large extension. | 0:25:54 | 0:25:59 | |
'Inside, there's going to be a huge dining room and kitchen with doors looking out onto the garden. | 0:26:00 | 0:26:06 | |
'The smaller front room has also been replastered and prepared for decoration. | 0:26:07 | 0:26:12 | |
'Upstairs, it's a similar story for the four main bedrooms. | 0:26:13 | 0:26:18 | |
'But a completely new use has been found for the box room.' | 0:26:19 | 0:26:24 | |
OK, this used to be the box room, | 0:26:24 | 0:26:26 | |
which we've taken out and put a staircase up into the loft, | 0:26:26 | 0:26:30 | |
which, in future, we're going to make a bedroom, an en suite, | 0:26:30 | 0:26:34 | |
a master bedroom and a master en suite. | 0:26:34 | 0:26:37 | |
'That's a great idea. The property definitely lacked a master bedroom | 0:26:37 | 0:26:41 | |
'and it's worth sacrificing a box room for that. | 0:26:41 | 0:26:45 | |
'And the bathroom is well underway.' | 0:26:46 | 0:26:49 | |
In the bathroom, we went for an L-shaped bath. | 0:26:49 | 0:26:53 | |
This gave us more room to put a shower unit in. | 0:26:53 | 0:26:57 | |
We went for the textured tiles. | 0:26:57 | 0:27:00 | |
Even though they're a little bit more expensive than the other tiles we were looking at, | 0:27:00 | 0:27:04 | |
we really liked these so we decided just to go for the feature wall | 0:27:04 | 0:27:08 | |
and a little more behind the sink. | 0:27:08 | 0:27:12 | |
Lee put lights on under the bath | 0:27:12 | 0:27:14 | |
to create a little bit more atmosphere when you're soaking in the bath. | 0:27:14 | 0:27:19 | |
We've got under-floor heating to keep your toes nice and cosy. | 0:27:19 | 0:27:24 | |
And also we've got a towel rail to go here. | 0:27:24 | 0:27:27 | |
And then that should be the bathroom finished. | 0:27:27 | 0:27:29 | |
'Lee and Andrea have certainly done a great job of redesigning this house. | 0:27:33 | 0:27:38 | |
'It has taken a lot of time and energy, especially as Lee has done most of the work himself, | 0:27:38 | 0:27:43 | |
'along with the help of some very good friends. | 0:27:43 | 0:27:46 | |
'All this while still working full-time. | 0:27:46 | 0:27:49 | |
'And there's another reason it's taken two years to get to this stage.' | 0:27:49 | 0:27:52 | |
I had my daughter last year. | 0:27:54 | 0:27:56 | |
# Baby, baby | 0:27:56 | 0:28:00 | |
And she's now 11 months old. | 0:28:00 | 0:28:02 | |
So she's taken up a lot of my time. | 0:28:02 | 0:28:05 | |
# Baby, baby | 0:28:05 | 0:28:07 | |
'I bet she has! But at least little Isabella won't be short of space here.' | 0:28:07 | 0:28:12 | |
She'll have a choice of bedrooms. | 0:28:12 | 0:28:14 | |
We're not sure which one she's going to have yet. | 0:28:14 | 0:28:18 | |
She might have a bedroom and a play room. | 0:28:19 | 0:28:22 | |
But there'll be a lot of space for her and any other brothers or sisters that come along. | 0:28:22 | 0:28:27 | |
'Not sure anyone's told Lee about that! | 0:28:27 | 0:28:31 | |
'But with everything that's going on for Lee and Andrea, | 0:28:31 | 0:28:34 | |
'it's not surprising the schedule ran over.' | 0:28:34 | 0:28:37 | |
We initially said six months, but maybe that was a little bit optimistic. | 0:28:38 | 0:28:43 | |
I think, when we got into the house and had a look around, | 0:28:43 | 0:28:48 | |
it opened up a whole new can of worms where we found other problems | 0:28:48 | 0:28:52 | |
and decided, "Let's do it right now." | 0:28:52 | 0:28:55 | |
We weren't going to do the extension, we were going to move in, | 0:28:55 | 0:28:58 | |
but we thought, with the mess, let's do it all now and get it finished | 0:28:58 | 0:29:03 | |
and if it takes two years, then it takes two years or three years, so be it. | 0:29:03 | 0:29:08 | |
But we'll get it how we want it at the end. | 0:29:08 | 0:29:10 | |
'It looks as though Lee and Andrea's efforts have been well worth it | 0:29:13 | 0:29:16 | |
'and they'll end up with a fantastic family home. | 0:29:16 | 0:29:19 | |
'But how has this affected their original £20,000 budget?' | 0:29:19 | 0:29:23 | |
I think we've spent just over £30,000 at the moment, | 0:29:23 | 0:29:27 | |
so we are running over-budget. | 0:29:27 | 0:29:30 | |
We've probably got another £5,000 to spend, cos most of the things have been purchased now. | 0:29:30 | 0:29:36 | |
'Lee and Andrea bought the property for £190,000 | 0:29:36 | 0:29:40 | |
'and will have spent approximately £35,000 on the development, | 0:29:40 | 0:29:44 | |
'making a total outlay of around £225,000. | 0:29:44 | 0:29:48 | |
'So what impact does this have on the value here? | 0:29:48 | 0:29:51 | |
'We asked two local property experts for their opinions.' | 0:29:51 | 0:29:55 | |
The layout's pretty solid for family use. | 0:29:58 | 0:30:01 | |
Great farmhousey kitchen across the back looking over what will become the garden | 0:30:01 | 0:30:06 | |
and a nice layout of four pretty-near double bedrooms and a bathroom up here. | 0:30:06 | 0:30:11 | |
Whilst it's not totally finished yet, | 0:30:11 | 0:30:14 | |
if they carry on with the quality of work that they've started, | 0:30:14 | 0:30:18 | |
there could be the makings of a really high-class home here. | 0:30:18 | 0:30:21 | |
The layout is good. There's a nice element of flow around the property. | 0:30:23 | 0:30:29 | |
I would say the best selling point would be the open-plan kitchen-diner | 0:30:29 | 0:30:33 | |
opening out onto the back garden. | 0:30:33 | 0:30:36 | |
It's a really nice family space | 0:30:36 | 0:30:40 | |
which, once finished, will look really good. | 0:30:40 | 0:30:43 | |
'Great feedback on Lee and Andrea's hard work, then. | 0:30:46 | 0:30:49 | |
'So what could the house be worth once it's finished?' | 0:30:49 | 0:30:53 | |
When the house is done and in all its glory, | 0:30:53 | 0:30:56 | |
it'll be worth about £265,000, £275,000 perhaps. | 0:30:56 | 0:31:02 | |
The resale value of this property will be £275,000. | 0:31:02 | 0:31:07 | |
OK, yeah. I'm very happy with that, to be honest. | 0:31:07 | 0:31:11 | |
-Yeah. 265, 270 is about what we expected. -So, yeah, brilliant. | 0:31:11 | 0:31:17 | |
'A fantastic result for Lee and Andrea. Not only have they created a wonderful family home | 0:31:22 | 0:31:27 | |
'but they can relax in the knowledge that they have quite an asset should they sell in the future. | 0:31:27 | 0:31:33 | |
'Speaking of which, what's next for this young family?' | 0:31:33 | 0:31:36 | |
-We've got to arrange a first birthday party. -Yep. | 0:31:37 | 0:31:42 | |
And then really crack on with the house and get it finished. | 0:31:42 | 0:31:45 | |
Get the flooring down and the carpets chosen and maybe some colour schemes for the walls | 0:31:45 | 0:31:51 | |
and all the stuff that I like. | 0:31:51 | 0:31:53 | |
I'm in Shettleston, traditionally regarded as a family area of Glasgow. | 0:32:02 | 0:32:07 | |
Not necessarily your first choice when it comes to property investment, but all that could be set to change | 0:32:07 | 0:32:13 | |
because in 2014, Glasgow is holding the Commonwealth Games | 0:32:13 | 0:32:18 | |
and the velodrome, swimming pool and village centre are all going to be very close to here, | 0:32:18 | 0:32:22 | |
so it could be that you need your trainers on to keep up with the property race. | 0:32:22 | 0:32:27 | |
The property, or properties, I'm here to see is a rather interesting proposition. | 0:32:31 | 0:32:36 | |
It's two semi-detached bungalows which are being sold as one lot. | 0:32:36 | 0:32:41 | |
They have a guide price of £85,000 to £95,000. Each has got one bedroom. | 0:32:41 | 0:32:45 | |
The big question is, will it be two for the price of one or double the trouble? | 0:32:45 | 0:32:49 | |
# I got double 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 | |
# Twice as much as anybody else, oh, yeah | 0:32:57 | 0:33:00 | |
'So you get two houses for around that guide price of £85,000. | 0:33:00 | 0:33:04 | |
'From the front, they don't look too bad, | 0:33:04 | 0:33:06 | |
'but the fact they're boarded up hints that they're in need of some TLC.' | 0:33:06 | 0:33:12 | |
Straight away, you can see, in very shabby condition inside, | 0:33:12 | 0:33:16 | |
although a real bonus, the height of the ceiling is very unusual for a bungalow | 0:33:16 | 0:33:20 | |
and it gives a great sense of space. | 0:33:20 | 0:33:22 | |
In terms of the internal layout, it's disastrous! | 0:33:22 | 0:33:26 | |
You've got this big room at the front, which could be a bedroom. | 0:33:26 | 0:33:30 | |
This large central area, which is a complete wasted space. | 0:33:30 | 0:33:33 | |
Another room there, which I presume is a rear sitting room. | 0:33:33 | 0:33:37 | |
Straight away I'm thinking surely you must be allowed to play around with this, | 0:33:37 | 0:33:41 | |
change the layout to give you at least two bedrooms. | 0:33:41 | 0:33:44 | |
Then through to the rear, where there's a reasonable sized lounge, | 0:33:44 | 0:33:48 | |
so you wouldn't be losing anything by making that into two bedrooms. | 0:33:48 | 0:33:52 | |
Then through into the kitchen. | 0:33:52 | 0:33:55 | |
So, all in all, a very, very, very large amount of space. | 0:33:55 | 0:34:00 | |
'I'm surprised by the Tardis-like qualities of these properties. | 0:34:01 | 0:34:05 | |
'But you'd certainly need to change the layout. | 0:34:05 | 0:34:08 | |
'The bathroom is tiny and crammed into the hallway area. | 0:34:08 | 0:34:12 | |
'And next door isn't looking great, either. | 0:34:12 | 0:34:15 | |
'Because this one has less furniture, you can see cracks in the walls | 0:34:15 | 0:34:19 | |
'and that porch area is in a right old state. | 0:34:19 | 0:34:22 | |
'But you'd be off your trolley not to see the potential here.' | 0:34:22 | 0:34:26 | |
There is some good news, because planning permission has been passed | 0:34:28 | 0:34:32 | |
to go up into the roof and add another bedroom. | 0:34:32 | 0:34:35 | |
That's going to save you at least two to three months | 0:34:35 | 0:34:39 | |
and, when it comes to renting this place out, you want to get your money in as quickly as you can. | 0:34:39 | 0:34:44 | |
'But would there be demand for two renovated bungalows around here? | 0:34:48 | 0:34:52 | |
'To find out, I invited a local estate agent along to tell me more.' | 0:34:52 | 0:34:57 | |
Shettleston probably sits about four miles away from Glasgow city centre. | 0:34:57 | 0:35:02 | |
It's easy to get to Glasgow city centre from here | 0:35:02 | 0:35:04 | |
and there's a wide variety of amenities and shops within the locale. | 0:35:04 | 0:35:10 | |
I've worked this area for a long time | 0:35:10 | 0:35:12 | |
and I didn't know this property existed. | 0:35:12 | 0:35:14 | |
So it's unusual to find such a unique, traditional bungalow style | 0:35:14 | 0:35:19 | |
in this part of Shettleston, because there's a mixture of council properties, cottages, | 0:35:19 | 0:35:24 | |
cottage flats, so this one kind of stands alone in that it's a wee bit different. | 0:35:24 | 0:35:29 | |
'Being the only bungalows like this in the vicinity is surely a good selling point, | 0:35:34 | 0:35:38 | |
'especially if they were extended. | 0:35:38 | 0:35:40 | |
'So, after renovation work has been finished on both, | 0:35:40 | 0:35:43 | |
'what rental potential does each one have?' | 0:35:43 | 0:35:46 | |
I would suggest a rental figure of somewhere between £450 and £500 per calendar month per unit. | 0:35:46 | 0:35:53 | |
'Not bad. And if sold on?' | 0:35:53 | 0:35:56 | |
I would estimate that each property, if it was refurbished, | 0:35:56 | 0:36:01 | |
would probably be worth about £95,000 to £100,000 per unit. | 0:36:01 | 0:36:05 | |
Well, you do get two properties for that £85,000 to £95,000 guide price, | 0:36:07 | 0:36:13 | |
but as you can see, they are in a right old state. | 0:36:13 | 0:36:16 | |
Still, that planning permission is good news | 0:36:16 | 0:36:18 | |
and I think it could turn these two very shabby bungalows into desirable properties. | 0:36:18 | 0:36:24 | |
Let's see who spotted the opportunity when it went under the hammer. | 0:36:24 | 0:36:28 | |
Next is lot number 29, a pair of semi-detached bungalows | 0:36:28 | 0:36:33 | |
offering a redevelopment opportunity if wished. | 0:36:33 | 0:36:36 | |
Looking for an opening bid of just £60,000. | 0:36:36 | 0:36:39 | |
£60,000 I've got, straight in. | 0:36:39 | 0:36:41 | |
£60,000. Who's coming back at 65? | 0:36:41 | 0:36:43 | |
£65,000. 65 I've got. | 0:36:43 | 0:36:46 | |
70,000. £70,000 it is. 75. | 0:36:46 | 0:36:51 | |
Is that 80, sir? 80,000 it is. At £80,000. | 0:36:51 | 0:36:54 | |
£80,000. 85. | 0:36:54 | 0:36:56 | |
85. 90,000. 90,000 it is. | 0:36:56 | 0:36:59 | |
£90,000. I'll go 92 if it helps. | 0:36:59 | 0:37:03 | |
£92,000. Yes, 92. I'll go 93 if it helps you, sir. 93. | 0:37:04 | 0:37:08 | |
93 it is. £93,000. | 0:37:08 | 0:37:12 | |
94. £95,000. | 0:37:12 | 0:37:15 | |
Shake of the head. It's your bid at £95,000. | 0:37:15 | 0:37:18 | |
£95,000. Are we all done? | 0:37:18 | 0:37:21 | |
Last chance. I'm going to sell at £95,000. | 0:37:21 | 0:37:24 | |
Anyone else coming in? Be very quick now. | 0:37:24 | 0:37:27 | |
Last chance. £95,000. Sold. | 0:37:27 | 0:37:31 | |
Congratulations, sir. And your bidding number is? Number 245. | 0:37:31 | 0:37:35 | |
'That successful bid of £95,000 came from David. | 0:37:38 | 0:37:43 | |
'He owns a double-glazing business and develops property on the side. | 0:37:43 | 0:37:47 | |
'I met up with him to hear about his plans.' | 0:37:47 | 0:37:50 | |
-David, good to meet you. -Nice to meet you. -Congratulations. | 0:37:50 | 0:37:53 | |
Tell me why you wanted to buy this pair of bungalows. | 0:37:53 | 0:37:56 | |
Basically, I've been born and brought up in this area, | 0:37:56 | 0:38:00 | |
so I've always had my eye on them and I've seen them deteriorate over the years | 0:38:00 | 0:38:04 | |
-and I thought it'd be a good investment. -So what about them other than familiarity did you like? | 0:38:04 | 0:38:10 | |
It seems as if it's the only two bungalows in the street that aren't done up to a reasonable standard, | 0:38:10 | 0:38:15 | |
-so hopefully we can get them up to that reasonable standard and make a profit. -They're big inside. | 0:38:15 | 0:38:20 | |
-They're deceiving from the outside. I didn't realise when I bought them. -How do you mean? | 0:38:20 | 0:38:25 | |
I thought they were one-bedroom bungalows but there's a few rooms and an extension at the back. | 0:38:25 | 0:38:30 | |
-So you'd not seen them inside before you bought them? -No, we couldn't get in the property when we turned up. | 0:38:30 | 0:38:36 | |
And presumably the planning was a big draw, as well. | 0:38:36 | 0:38:40 | |
-I didn't know about that, either. -You didn't know about the planning? -Not at all. That was a bonus. | 0:38:40 | 0:38:46 | |
-No kidding! -Once we got them through, it was a bonus. | 0:38:46 | 0:38:50 | |
'You know what I'm going to say, don't you? | 0:38:50 | 0:38:52 | |
'Buying properties at auction without viewing them beforehand or looking at the paperwork is a bonkers approach.' | 0:38:52 | 0:38:59 | |
# Bonkers | 0:38:59 | 0:39:01 | |
'Thankfully, in this case, David has actually lucked out, both in terms of space and the planning approval. | 0:39:01 | 0:39:06 | |
'And there was the price he paid at auction.' | 0:39:06 | 0:39:09 | |
-Would you have paid more for them? -Yes. | 0:39:09 | 0:39:12 | |
-How much more? -I think we would've gone up to about £75,000 each for them, but they were 43 each. | 0:39:12 | 0:39:19 | |
So you paid 95 for them and you would've gone to 150? | 0:39:19 | 0:39:23 | |
Yes, 150, that was our budget. | 0:39:23 | 0:39:26 | |
-So you saved yourself 55 grand. -Yes. | 0:39:26 | 0:39:28 | |
It's the first time I've bought a property at an auction, | 0:39:28 | 0:39:32 | |
but what a buzz I got from it. Afterwards, I felt really pleased. | 0:39:32 | 0:39:35 | |
What are you going to do with the extra money? | 0:39:35 | 0:39:38 | |
-Basically, I bought another property at that auction. -Did you? -Yeah. | 0:39:38 | 0:39:42 | |
-That one was walk-in condition, so it's rented out now. -Wow! | 0:39:42 | 0:39:46 | |
'David's done well with these bungalows. | 0:39:49 | 0:39:52 | |
'Although this was his first auction purchase, he's been a developer for some time.' | 0:39:52 | 0:39:58 | |
I started buying property when I was about 17, so every year I've bought one property, | 0:39:59 | 0:40:04 | |
but this year we've bought three. | 0:40:04 | 0:40:06 | |
It's just more of a nest egg for when I retire. | 0:40:06 | 0:40:10 | |
-Right. How big is your portfolio now? -I have about 14 properties. | 0:40:10 | 0:40:15 | |
So that gives your age away a bit. That's great. | 0:40:15 | 0:40:18 | |
-So the idea is to buy, do up and rent out, then? -Yes. | 0:40:18 | 0:40:23 | |
-What are you going to do with them? -We'll look at planning permission and just get them renovated | 0:40:23 | 0:40:28 | |
and get them up to a reasonable standard. | 0:40:28 | 0:40:31 | |
Right. What about the internal layout? | 0:40:31 | 0:40:33 | |
-Cos it struck me when I first saw them that it's terribly bad use of space. -Yeah. | 0:40:33 | 0:40:39 | |
It's something that I'll get my builders to come in and look at | 0:40:39 | 0:40:43 | |
and we'll get it redrawn up exactly how we want it | 0:40:43 | 0:40:46 | |
and get things moved about exactly where we need them. | 0:40:46 | 0:40:49 | |
-Are you going to convert it from one bedroom to more? -Yes, hopefully there'll be three bedrooms. | 0:40:49 | 0:40:55 | |
-Three? -Yeah, because hopefully we can take something upstairs. -Ah, of course. | 0:40:55 | 0:41:00 | |
# Now there are three | 0:41:00 | 0:41:03 | |
# Steps to heaven | 0:41:03 | 0:41:04 | |
'Going up into the loft to create a third bedroom | 0:41:05 | 0:41:08 | |
'will take David closer to rental income heaven. But how much will he need to spend?' | 0:41:08 | 0:41:14 | |
I think it'll cost between £35,000 and £40,000 to get them up to a reasonable level. | 0:41:14 | 0:41:21 | |
-Per property? -Per property. | 0:41:21 | 0:41:24 | |
We were hoping about £100,000, each one would cost us, for each bungalow, | 0:41:24 | 0:41:29 | |
so we've got 57 to play with in each one, | 0:41:29 | 0:41:31 | |
but hopefully it'll be between 35 and 40. | 0:41:31 | 0:41:34 | |
'David's given himself a generous year to complete the project. | 0:41:35 | 0:41:40 | |
'As he has a double-glazing business and rental properties to manage, | 0:41:40 | 0:41:44 | |
'he'll bring in a team of professionals to do the work.' | 0:41:44 | 0:41:47 | |
At the start, I was very hands-on, but now, because of the size of us, | 0:41:47 | 0:41:52 | |
I basically have to manage everything, so I'm just on a managerial status now. | 0:41:52 | 0:41:57 | |
-Do you miss the hands-on stuff? -Yeah, I do. | 0:41:57 | 0:42:00 | |
I miss the idea of going into customers' houses | 0:42:00 | 0:42:04 | |
and the banter you have with customers. You don't have that anymore. | 0:42:04 | 0:42:07 | |
So it's just guys that are all babies that you look after now. | 0:42:07 | 0:42:15 | |
-Well, we look forward to seeing it. Congratulations. -Thank you. | 0:42:15 | 0:42:18 | |
Well, what a doubly positive result for David. | 0:42:18 | 0:42:21 | |
Not only did he get the properties for £55,000 less than he was willing to spend, | 0:42:21 | 0:42:25 | |
but he discovers there's planning permission on them, which he didn't know about. Fantastic. | 0:42:25 | 0:42:30 | |
A year to get them sorted out is a long time, and that's money which could be in the bank from rentals, | 0:42:30 | 0:42:35 | |
so I hope it's quicker than that. | 0:42:35 | 0:42:38 | |
You can find out how he gets on later in the show. | 0:42:38 | 0:42:41 | |
Well, time has passed since we last saw our plucky buyers. | 0:42:44 | 0:42:47 | |
-Ah. Have they been firing on all cylinders? -Let's go back and find out. | 0:42:47 | 0:42:51 | |
'We're back in the Southampton suburb of Shirley, | 0:42:56 | 0:42:59 | |
'where local lady Nicky bought this three-bed detached house at auction for £163,000. | 0:42:59 | 0:43:05 | |
'She wanted to get into property developing and this was her first project. | 0:43:05 | 0:43:10 | |
'The main problem with this renovation was obvious as soon as you entered.' | 0:43:10 | 0:43:14 | |
-What about the smell of damp when you walk in? It really does hit you. -It does, yeah. | 0:43:15 | 0:43:19 | |
There was a flood at Christmas but it wasn't discovered for a couple of weeks, | 0:43:19 | 0:43:23 | |
so that's a result of that, so that'll be the first job, to dry the property out. | 0:43:23 | 0:43:29 | |
'Once the damp was addressed, plus one or two other problems, Nicky's plan was to renovate the house | 0:43:34 | 0:43:39 | |
'with her team of builders so she could use it as a rental machine. | 0:43:39 | 0:43:43 | |
'We've returned three months later to see how the development has turned out. | 0:43:43 | 0:43:47 | |
'Straight away, coming through the front door, you're no longer struck by the smell of damp | 0:43:57 | 0:44:01 | |
'or a rotting interior, but by the fantastic transformation | 0:44:01 | 0:44:05 | |
'Nicky and her team have managed here. | 0:44:05 | 0:44:08 | |
'Under the stairs, which was basically dead space, | 0:44:08 | 0:44:11 | |
'a downstairs toilet has been installed. | 0:44:11 | 0:44:14 | |
'The large sitting room with its out-of-date fireplace | 0:44:17 | 0:44:20 | |
'now looks as good as new. | 0:44:20 | 0:44:22 | |
'And it's a similar story in the dining room. | 0:44:23 | 0:44:26 | |
'Next to the dining room, the kitchen had really needed updating, | 0:44:30 | 0:44:34 | |
'and Nicky has certainly delivered on that.' | 0:44:34 | 0:44:37 | |
I decided to go for cream units and wooden worktops and also a wooden floor, as well. | 0:44:39 | 0:44:45 | |
The tiles, I decided to go for the mosaic design | 0:44:45 | 0:44:49 | |
because I was slightly restricted by the curve round here, | 0:44:49 | 0:44:53 | |
and with small tiles, you get the flexibility to be able to tile that area. | 0:44:53 | 0:44:57 | |
This is the window that was slightly raised to enable the sink to be put in, | 0:44:57 | 0:45:03 | |
and that also gave the chance for more work surface, as well. | 0:45:03 | 0:45:08 | |
'Moving upstairs, all three bedrooms have been given the same treatment. | 0:45:14 | 0:45:18 | |
'And the window in the front bedroom, which was previously crumbling, has been repaired. | 0:45:24 | 0:45:28 | |
'The bathroom has also been removed and entirely replaced. | 0:45:28 | 0:45:32 | |
'Now there is a superb finish on the property | 0:45:35 | 0:45:37 | |
'and no sign of any damp. How was that tackled?' | 0:45:37 | 0:45:42 | |
There were two problems. There was the flooding at Christmas because of a burst pipe, | 0:45:42 | 0:45:46 | |
so we ended up having to rebuild some of the walls, | 0:45:46 | 0:45:49 | |
the kitchen floor had to be replaced. | 0:45:49 | 0:45:52 | |
And also there was an issue with damp, which was mainly due to the driveway, | 0:45:52 | 0:45:57 | |
which had constantly been built upon layer upon layer | 0:45:57 | 0:46:00 | |
so it's actually obscuring the damp course. | 0:46:00 | 0:46:03 | |
So that resulted in a few problems. | 0:46:03 | 0:46:06 | |
The driveway had to be dug up and re-levelled. | 0:46:06 | 0:46:09 | |
So, basically, it meant it was a bigger job than was first anticipated. | 0:46:09 | 0:46:13 | |
'That damp problem turned out to be quite a headache, | 0:46:20 | 0:46:23 | |
'but thanks to thorough investigation and a new damp-proof course, it's all sorted now. | 0:46:23 | 0:46:27 | |
'But how did that affect the budget?' | 0:46:27 | 0:46:30 | |
The budget actually ended up being £10,000 over the anticipated cost. | 0:46:31 | 0:46:36 | |
Initially, I was looking at 35 to perhaps 37. | 0:46:36 | 0:46:40 | |
The final figure was 47. | 0:46:40 | 0:46:43 | |
A lot of that was the extra work that had to be done on the exterior with regards to the driveway | 0:46:43 | 0:46:48 | |
and also the extra work as a consequence of the damp problem and the flooding. | 0:46:48 | 0:46:53 | |
'An overspend of £10,000 is a bitter pill to swallow. | 0:46:53 | 0:46:58 | |
'But as Nicky plans to keep the house as an investment, | 0:46:58 | 0:47:01 | |
'getting all the work done properly was paramount | 0:47:01 | 0:47:04 | |
'and has given her vital experience.' | 0:47:04 | 0:47:06 | |
As a first project, it probably was quite adventurous and if I didn't have the support of the builders | 0:47:07 | 0:47:13 | |
and the help and guidance that I did have, I undoubtedly would've struggled, | 0:47:13 | 0:47:18 | |
so I was lucky to have the support I did. | 0:47:18 | 0:47:21 | |
'Nicky bought the property for £163,000 | 0:47:24 | 0:47:28 | |
'and has spent 47 grand on the development, | 0:47:28 | 0:47:31 | |
'adding up to a total £210,000. | 0:47:31 | 0:47:33 | |
'So has her first venture been a success? | 0:47:33 | 0:47:36 | |
'We asked two local estate agents for their appraisal.' | 0:47:36 | 0:47:39 | |
It's a lovely size family property in a sought-after location and it's been decorated to a high standard. | 0:47:42 | 0:47:48 | |
The bedroom sizes are ideal for the rental market and sharers. | 0:47:48 | 0:47:53 | |
It would appeal to professionals who work at the hospital | 0:47:53 | 0:47:57 | |
and young families. | 0:47:57 | 0:47:59 | |
My first impression of the property from walking in, it's like a new home. | 0:48:02 | 0:48:06 | |
It's like a show home. It's been fully refurbished and it looks very nice. | 0:48:06 | 0:48:10 | |
I think, at this moment in time, this property is better off | 0:48:10 | 0:48:13 | |
as a rental property. I think it'll generate a good income. | 0:48:13 | 0:48:17 | |
'All positive. And it seems Nicky's idea of renting it out is spot on. | 0:48:20 | 0:48:23 | |
'How much could she achieve?' | 0:48:23 | 0:48:27 | |
I'd expect this property to achieve £995 per calendar month. | 0:48:27 | 0:48:31 | |
I'd expect it to achieve around £1,000 per calendar month. | 0:48:31 | 0:48:35 | |
I'm very pleased with those values, yes. It's above what I thought, to be honest. So that's very good news. | 0:48:35 | 0:48:41 | |
'Bonus. Nicky's first project seems to be paying off. | 0:48:41 | 0:48:45 | |
'On those numbers, she looks to be in for a yield of almost six percent. | 0:48:45 | 0:48:49 | |
'In the current climate, you won't find a return like that by investing in a bank. | 0:48:49 | 0:48:53 | |
'But if she were to sell, what kind of price could she be looking at? | 0:48:53 | 0:48:57 | |
'Remember, her total outlay here is £210,000.' | 0:48:57 | 0:49:01 | |
If I was to put this property on the market for sale, I would expect to achieve £235,000. | 0:49:03 | 0:49:08 | |
If I was to put this property on the market for sale today, I'd put it on for £249,950. | 0:49:08 | 0:49:13 | |
-I prefer the £249,950. -SHE LAUGHS | 0:49:13 | 0:49:17 | |
No, really pleased with that valuation. | 0:49:17 | 0:49:20 | |
# Smiley faces | 0:49:20 | 0:49:23 | |
# Smiley faces | 0:49:23 | 0:49:26 | |
'Nicky's got every reason to smile. | 0:49:26 | 0:49:28 | |
'Despite her budget overspend, she could still make a pre-tax profit of between £25,000 and £40,000 | 0:49:28 | 0:49:35 | |
'if she changed her mind and decided to sell. | 0:49:35 | 0:49:38 | |
'So, is she pleased with her first project?' | 0:49:38 | 0:49:41 | |
I'm really pleased with how the project's gone | 0:49:41 | 0:49:43 | |
and I'll definitely do another one. | 0:49:43 | 0:49:45 | |
It's been a learning curve, as well, but thoroughly enjoyable. | 0:49:45 | 0:49:49 | |
'We're back in Shettleston, a suburb of Glasgow, | 0:49:55 | 0:49:59 | |
'where these two one-bedroom bungalows sold at auction for £95,000 to David. | 0:49:59 | 0:50:04 | |
'He owns a glazing company but also develops property on the side. | 0:50:04 | 0:50:09 | |
'David was so taken with them that he bought them without seeing how spacious they were inside. | 0:50:09 | 0:50:14 | |
'But that wasn't his only surprise. | 0:50:14 | 0:50:17 | |
'The properties came with planning permission to extend and convert the attic space.' | 0:50:17 | 0:50:22 | |
Presumably, the planning was a big draw, as well. | 0:50:22 | 0:50:24 | |
-I didn't know about that, either. -You didn't know about the planning? -Not at all. That was a bonus. | 0:50:24 | 0:50:31 | |
-No kidding! -Once we got them through, it was a bonus. | 0:50:31 | 0:50:34 | |
# Oh, lucky you | 0:50:34 | 0:50:37 | |
# If it's really true, oh, lucky you | 0:50:37 | 0:50:40 | |
'With planning permission already in place, David intended to turn these tired old bungalows | 0:50:41 | 0:50:46 | |
'into three-bedroom family homes within a year. | 0:50:46 | 0:50:50 | |
'But we've come back just six months later to see how things have moved on. | 0:50:50 | 0:50:54 | |
'Well, clearly a lot of work has been carried out, | 0:50:57 | 0:51:00 | |
'although the renovation is not yet complete. | 0:51:00 | 0:51:03 | |
'The exterior of the properties used to be completely overgrown, | 0:51:03 | 0:51:07 | |
'but that has now all been cleared in preparation for turf to be laid. | 0:51:07 | 0:51:11 | |
'The old windows have been removed and new frames installed | 0:51:11 | 0:51:15 | |
'ready to be glazed when the refurbishment is finished. | 0:51:15 | 0:51:18 | |
'Inside, all the downstairs rooms have been stripped back to their bare walls and replastered. | 0:51:20 | 0:51:27 | |
'The bathroom, which was totally outdated, has been removed and will all be modernised. | 0:51:27 | 0:51:34 | |
'What used to be the lounge is now destined to be the dining room. | 0:51:34 | 0:51:38 | |
'At the back of the house, off the dining room, | 0:51:39 | 0:51:42 | |
'the old kitchen has made way for a new, more contemporary layout.' | 0:51:42 | 0:51:46 | |
Downstairs, the houses are set out in exactly the same way. | 0:51:49 | 0:51:54 | |
We have our bedroom number one here, there's the dining room here and the kitchen right behind, | 0:51:54 | 0:52:00 | |
the toilet right behind me and the lounge here. | 0:52:00 | 0:52:03 | |
We've redone all the plaster work in the house. | 0:52:03 | 0:52:06 | |
The plumbing has been redone and all the electrics have been redone. | 0:52:06 | 0:52:11 | |
'David's opened up the downstairs living space. | 0:52:11 | 0:52:14 | |
'But it's upstairs that's seen the biggest change.' | 0:52:14 | 0:52:17 | |
# Change | 0:52:17 | 0:52:19 | |
# Nothing stays the same | 0:52:19 | 0:52:22 | |
'He had planned to make these bungalows into three-bed houses, | 0:52:22 | 0:52:25 | |
'but it seems he's managed to get four bedrooms in. | 0:52:25 | 0:52:29 | |
'And all a very decent size.' | 0:52:29 | 0:52:33 | |
# Nothing stays the same | 0:52:33 | 0:52:36 | |
'With a bathroom, as well. | 0:52:36 | 0:52:39 | |
'Extending into the roof has made a massive impact on the size | 0:52:39 | 0:52:43 | |
'and, potentially, the value of these former bungalows. | 0:52:43 | 0:52:47 | |
'But it wasn't all plain sailing.' | 0:52:47 | 0:52:49 | |
The roofs were a slight problem, because we started doing them in the winter time | 0:52:49 | 0:52:54 | |
and the snow stopped us from working. | 0:52:54 | 0:52:57 | |
But the most drastic part of the build was getting the roofs up. | 0:52:57 | 0:53:04 | |
Once they were up, everything was quite quick. | 0:53:04 | 0:53:07 | |
'It's taken six months to get to this point and David reckons they should take another two months to complete. | 0:53:08 | 0:53:15 | |
'How's he fared with the finances?' | 0:53:15 | 0:53:18 | |
So far, we've spent about £40,000 on each property. | 0:53:18 | 0:53:21 | |
I think another £17,000 on each property should be sufficient to get them finished off. | 0:53:21 | 0:53:26 | |
'Wow! That's a total spend of £114,000 on renovations alone. | 0:53:29 | 0:53:36 | |
'A definite challenge when managing the cash flow.' | 0:53:36 | 0:53:40 | |
I think, because this is the first big refurbishment I've done, | 0:53:40 | 0:53:43 | |
what we've learnt is you do need a massive cash flow to keep the builds going. | 0:53:43 | 0:53:49 | |
Without that, they would come to a stop dead quick. They eat up the money. | 0:53:49 | 0:53:54 | |
'This is a serious investment on David's part, and because of what's at stake, | 0:53:55 | 0:54:00 | |
'he's changed his mind about what he'll do with the houses once they're finished.' | 0:54:00 | 0:54:04 | |
Because we've done so much work in the house, I think renting the properties, | 0:54:04 | 0:54:08 | |
if somebody came in and didn't treat it right, | 0:54:08 | 0:54:11 | |
I wouldn't be happy at all, so I think we're going to sell them. | 0:54:11 | 0:54:14 | |
'David bought the properties for £95,000 | 0:54:17 | 0:54:20 | |
'and estimates refurbishment costs of £114,000, | 0:54:20 | 0:54:25 | |
'making his likely outlay about £209,000. | 0:54:25 | 0:54:29 | |
'So, have the changes he's made | 0:54:29 | 0:54:31 | |
'increased the value of these two bungalows? | 0:54:31 | 0:54:34 | |
'We asked some local estate agents for their thoughts.' | 0:54:35 | 0:54:39 | |
Amazing. Quite a transformation since when I was here previously. | 0:54:40 | 0:54:45 | |
He's replastered all the walls, skirtings, fascias. It's looking good. | 0:54:45 | 0:54:52 | |
Well, he's obviously decided to make the property larger, | 0:54:52 | 0:54:55 | |
maybe go for a family home rather than something smaller to rent out, | 0:54:55 | 0:54:58 | |
which is great because in the area, | 0:54:58 | 0:55:00 | |
there's not a huge amount of properties of this size, so he's probably gone for the right choice. | 0:55:00 | 0:55:05 | |
The properties increased in size from one bedroom to four bedrooms | 0:55:07 | 0:55:12 | |
and, surprisingly, the rooms are very spacious | 0:55:12 | 0:55:17 | |
and a very good family size. | 0:55:17 | 0:55:19 | |
At the moment, there is a reasonable amount of work to complete them, | 0:55:19 | 0:55:23 | |
including bathrooms and windows, | 0:55:23 | 0:55:26 | |
but apart from that, it's mainly cosmetic. | 0:55:26 | 0:55:29 | |
'So, once the finishing touches have been done, | 0:55:31 | 0:55:34 | |
'what kind of price could David expect to achieve when he puts them up for sale?' | 0:55:34 | 0:55:38 | |
Upon completion, I think the resale of these properties would be | 0:55:38 | 0:55:43 | |
between £145,000 and £150,000 each. | 0:55:43 | 0:55:47 | |
When the properties are completed, | 0:55:47 | 0:55:49 | |
I think, in the current market conditions and subject to a satisfactory home report, | 0:55:49 | 0:55:55 | |
they would each fetch in the region of £155,000. | 0:55:55 | 0:55:59 | |
I think that's exactly what I was looking for. Relieved. | 0:55:59 | 0:56:04 | |
'No wonder he's relieved. Those valuations could give David | 0:56:04 | 0:56:08 | |
'a pre-tax profit of between £81,000 and £101,000, minus the usual selling expenses.' | 0:56:08 | 0:56:15 | |
# Go on, take the money and run | 0:56:16 | 0:56:19 | |
# Go on, take the money and run | 0:56:21 | 0:56:24 | |
'With the amount of capital riding on this development, | 0:56:24 | 0:56:28 | |
'David has decided to sell rather than rent out these properties. | 0:56:28 | 0:56:31 | |
'But even with the estate agents' rental values at between £650 and £750 each per calendar month, | 0:56:31 | 0:56:39 | |
'David's just satisfied that he has certainly transformed these old bungalows.' | 0:56:39 | 0:56:45 | |
It's really nice to see them. From when I was younger, they had gone down to such a bad standard | 0:56:45 | 0:56:50 | |
and now they're starting to look really nice again. It gives you a wee breath of fresh air. | 0:56:50 | 0:56:55 | |
-We'll see you again soon when more brave bidders hit the auction room. -See you then. -Goodbye. -Goodbye. | 0:56:57 | 0:57:03 | |
Subtitles by Red Bee Media Ltd | 0:57:04 | 0:57:08 | |
E-mail [email protected] | 0:57:08 | 0:57:12 | |
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