Episode 55 Homes Under the Hammer


Episode 55

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With the ups and downs of the property market,

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you have to trust your instincts.

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Nowhere is this more true than in the auction room.

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So join us now as we take the lottery out of property under the hammer.

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Buying at auction doesn't have to be scary.

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If you do your research and you stick to your limit, you can bid with confidence.

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Let's meet some buyers who hopefully did that.

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But did they bag a bargain or get more than they bargained for?

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Let's take a look at what they bought.

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'This five-bedroom house in Cornwall is a real hotchpotch of badly-fitting fixtures.'

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There you go, that just about sums this house up.

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'In Hampshire, this three-bed detached looked a bargain from outside, but inside...'

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Rather worryingly, the wallpaper's peeling off.

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'And there was an opportunity in Glasgow to buy two bungalows together in one lot.'

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Big question is, will it be two for the price of one or double the trouble?

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'All these properties are being sold at auction

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'and we will find out who bought them and what they paid for them when they went under the hammer.'

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'With its beautiful beaches and countryside,

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'the Southwest of England is a highly desirable part of the UK to live.

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'Many people would love to have a place down here

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'and in the past decade, a high number of buyers have purchased properties as second homes here.

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'But there has been a down side.'

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The influx of second-home owners buying properties in Cornwall

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has pushed prices out of the reach of many locals.

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But not here in Delabole, where I think there was a fantastic opportunity for somebody.

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This is it. Guide price of £125,000 to £150,000.

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It's a five-bedroom detached house. You can't argue with that, can you?

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# I'd call that a bargain

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# The best I ever had

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'That is a lot of house for the price.

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'From the front, it doesn't look too bad, either. But wait, there's more.

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'By the looks of it, you also get a free dining table and chairs.'

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# The best I ever had

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You don't know what you're going to find on the inside of a house like this.

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Yes, very grand from the outside, but what's been done with the internal layout?

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Don't know yet, but a fairly cramped entrance, which I'm not too keen on.

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Through to a front sitting room area there.

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Making use of the local slate with the fireplaces.

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And then this. What is going on? They've taken away the enclosure for the under-stairs cupboard

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and it's all open-plan, but you've got this pillar. It just doesn't work at all. All a bit strange.

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Through to another bit of the house that looks like it's kind of been, well, manked about with.

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Two fireplaces in this room. The floors are different levels, which doesn't work.

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I like the fact that they're stripped, but it just feels like somebody's just had a go

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and not really thought it through before they started. However, what's that?

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'Yes, I know it has a garden, but it's not just any garden.

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'It's a huge family one.

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'With a massive car-parking area to boot.'

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# Looking through the window

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'So, plenty of room to extend or maybe even develop.'

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So, great news out there, but unfortunately, back in the house, the bad news continues.

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The kitchen is just a disaster.

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For a house like this, this should be the focal point. It should be big and family-friendly.

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As it is, disastrous units and this hotchpotch feeling continues.

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I mean, look at this. A main beam going across here.

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You need to do something here. You need to build it out into that extension,

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you need to open up these walls and create that central focus for the house and it's got to be here.

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# It'll be just like starting over

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'Upstairs, there are four main bedrooms.

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'A box room.

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'And a bathroom.

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'All are in need of upgrading and potentially some repair work,

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'if that damp's anything other than a few loose tiles or a problem with the flashing.

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# Starting over

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'But something is still not quite right.'

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So, to sum up, upstairs, the kind of boxy feeling continues.

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Although, interestingly, it doesn't feel like it's been messed around up here.

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Again, there's no focal point, there's no master bedroom.

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Downstairs, you need the kitchen to be a focal point. Upstairs, you need a master bedroom.

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But I'm not sure how you'd create that.

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'This property will need some thought putting into it,

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'so hiring an architect could be money well spent.

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'Also, because there is no significant industry in this predominantly residential area,

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'rental yields are very low, so any buyer will be purchasing the house for occupation or resale.

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'Either way, maximising the potential here will be paramount.

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'We asked the auctioneer who sold it for his opinion.

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As well as the plain, obvious, great big house,

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there's quite a lot of land out the back, and if you look around at the neighbouring properties,

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there's new houses being built set back, so you might get yourself a second dwelling,

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which wouldn't knock an awful lot off the mother house,

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cos there's quite a lot of land.

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'A plot of land this size goes for around £80,000 around here.

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'Developing on it might only devalue the property by around 20 grand,

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'so you could make a useful increase in your total value if you did.

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'So, even without this, how much could this realistically be sold on for?'

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If you put this in apple-pie order, made the best of it,

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probably 265, 275, which is a funny price range

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when the market's hard work,

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because it's a job to tug things through 250.

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Ha! Well, there you go. That just about sums this house up.

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The fact that the door, when you open it, goes straight into the stairs.

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They didn't bother to measure it before they fitted it. This whole house has not been thought through.

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But whoever takes it on has the potential to turn this into a beautiful house.

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Let's find out who bought it at the auction.

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Delabole. Big detached property.

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Five beds. Big chunk of ground at the back.

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We know it's 150, don't we? Yes, we do.

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150. 55. 165. 170.

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175. 180?

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180. 185.

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190? No, 190 I want.

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185.

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188. 188.

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190. At 190.

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At 190. It's got to make 200, hasn't it? At 190.

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At 190. Stood has it. Both sat are out.

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At 190. That's a lot of house.

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At 190. 190 once.

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190 twice.

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At 190. Falling short of 200, but at 190, sure and done.

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At 190. You both missed it. Well done, sir. That's a lot of property.

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'That winning bid of £190,000 came from Lee.

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'He's bought this house with his partner, Andrea.

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'They live locally and have wanted to buy together for some time.

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'Lee's an electrician and Andrea is a research chemist.

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'I met up with them to find out more.'

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-Lee, Andrea, well done.

-Thank you very much.

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-Congratulations. It's a lovely house, actually.

-Yeah, we think so.

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-Why did you want to buy it?

-Erm, I've lived in the village all my life,

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wanted to stay in the village and this seemed an ideal opportunity to do that.

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-In the future, maybe have some children, looking at it as a big family home.

-Right.

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And what about your background? Are you from the village?

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I've been in Cornwall about ten years.

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I came down here for my first job after university

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and I really like Cornwall and I want to stay here.

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-And tell me about you two. How long have you been together?

-We've been together four years now.

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Met at the local village carnival.

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-Really?

-Yeah. We had a float. So, yeah.

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-Tell me more about that.

-I play football for the village

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-and we do a carnival float, and I was a pirate, wasn't I?

-Yep.

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And I had one too many and we got chatting and the rest is history.

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The first time you met, he was wearing a pirate outfit?

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-Yeah, I pulled a pirate.

-Pulled a pirate!

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# I am a pirate

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# You are a princess

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# We could sail the seven seas

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'Ahh, shiver me timbers! Love at first sight through an eye patch!

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'And it seems these two have had an eye on this house for a while now.'

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So what was it about this house that you liked? Did you know the house?

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I've got to be honest, we've driven by two or three times in the months before

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-and said, "Oh, if only that came on the market."

-Really?

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-Yeah.

-No!

-That's the honest truth.

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-You picked this particular house out?

-Yeah, we'd driven by it and said, "That's a really nice house,

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-"that'd suit us down to the ground."

-No!

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I was at work one day and Ange rang me up. "You'll never believe it, there's an auction sign up!"

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-Wow. So it's meant to be.

-Hopefully, yeah.

-You made it happen.

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'What's also meant to be is some drastic changes to the look of the place.'

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-There is a bit of work to be done.

-Yes, there certainly is.

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-A little bit more than we thought. I think you agree, Ange.

-Yeah.

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We'll change the downstairs layout, that's what we're hoping to do.

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And we'll have to get a structural engineer to have a look cos of the walls.

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But open it up, really. It's very boxy.

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We'd like to open the downstairs layout, kitchen-diner, and just get a bit more light in.

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'I couldn't agree more. As Lee's an electrician and both of them are prepared to do work themselves,

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'they should manage on their initial £20,000 budget pretty well.

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'But first they need to agree on how to spend it.'

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-Do you always agree on what you're going to do?

-Eventually, we usually come to some kind of compromise.

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We talk about it and then we go Andrea's way. That's what happens.

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-But it starts out that you've got different views?

-Yeah, usually.

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-What are your views?

-Well, it's little things, like the kitchen.

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Yeah, it's the budget, what to spend on what part of the house, really.

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It's not major disagreement, it's just niggly little things that we disagree on. Like the doors.

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-She likes the old-fashioned doors.

-I like the original 1930s doors.

-Absolutely.

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-And I'm not so keen.

-THEY LAUGH

-But, again, it's minor.

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'Compromise could be the name of the game here,

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'but they shouldn't rush into making decisions

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'that could lead them into deep water.'

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Give me an idea of how long it's going to take to do what you need to do.

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We've put a minimum of six months. Four to six months to get liveable.

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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.

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Yeah. This is going to be our home for the next five to ten years, so there's no hurry.

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We're not going to turn it round for a profit.

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Great. Congratulations to you both.

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-Good luck with it.

-Thank you.

-I look forward to seeing how you get on turning this into a family home.

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Well, it's great that Lee and Andrea are locals and they've actually bought this place to live in.

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Profit doesn't come into the equation. But when they're doing up this place, they have to be careful.

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It's one of those ones where you just sit down and plan very, very carefully before you start,

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otherwise their £20,000 budget will soon disappear.

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Find out how they get on later in the show.

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'I'm in Shirley in Southampton, a residential and shopping area close to the city centre.

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'It's the site of Southampton General, a large teaching hospital,

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'and home to the university's School of Medicine.

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'The question is, will today's property here be a major operation?'

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When the catalogue said the property was near to the hospital, they weren't kidding,

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because it is literally there at the end of the street, which means I'm already thinking rental

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with that steady stream of doctors and nurses keen for a short commute.

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The house itself is a three-bedroom detached

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and it had a guide of just £150,000.

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'I'm sure any medic would love to be just a few steps from home after a long shift.

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'The house is on a fairly busy road, as you'd imagine, leading up to the hospital.

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There's off-street parking for at least two cars, which solves that problem.

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'The property itself, well, it looks like it could be in need of a few stitches.'

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# Dress me up in stitches, it's now or never

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# Tired of wearing black and blue

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Oh, the first thing that hits you when you walk in this door is the smell of damp.

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But I'm going to forget that, because what a lovely surprise.

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Look at this wonderful open hallway, you've got lovely wide steps here.

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But, rather worryingly, the wallpaper's peeling off,

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you've got walls wet to the touch, so you've got to take on board all of that.

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But moving along the hallway, you've got this spacious space to put a downstairs loo.

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That's all a big tick in the right box. And, of course, through here,

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the kitchen is not a bad space,

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so you wouldn't necessarily need to knock through

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to borrow space from this room, the dining room. You've got a lovely square shape here.

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I'd be inclined to keep this as it is. Nice views out to the garden.

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All in all, a good, substantial family house

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with good downstairs living space. I really like it.

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'Yes, I like the space. I like the deep bay in the massive front room and the curve of the kitchen walls,

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'but I don't like the smell of damp.

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'As you walk around, you can see more and more signs of wet all over the walls.'

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Upstairs, what a lovely surprise.

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This landing is wonderfully spacious.

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But more than that, these three bedrooms are all good doubles,

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which is unusual in a 1930s layout.

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However, in this master bedroom, you've got very worrying cracks on either side of this bay.

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I've seen this before on houses of this era

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and it can be caused by badly-fitted UPVC double-glazing,

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which pushes this bay out and down.

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But just because you know what's caused these issues, doesn't mean they're cheap to fix.

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So I'd get some expert advice ASAP.

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'I think this place is going to need more than a quick bandage.

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'The wiring certainly looks shot to pieces

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'and there are hairline cracks in quite a number of the walls.

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'I get the feeling this bathroom could do with being ripped out and started again.

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'There are some nice features lurking, such as the fireplace in the rear bedroom.

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'But a closer examination of the legal pack reveals there's something else lurking that's more worrying.'

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It's a bit of a weird one in the catalogue description,

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because it says this property has an unregistered freehold title. So what does that actually mean?

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Well, it may surprise you that around a fifth of freehold titles aren't registered,

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even though it was introduced way back in Victorian times

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and it's been compulsory from 1990.

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But with regards to this house, it means you must make your own investigations

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into the seller's rights to sell the property.

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You'll have to trawl through the deeds, check for any covenants

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and ensure you know the boundaries of the land.

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Essentially, you have to cover your own back and make sure you know what you're buying.

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Now, it's not necessarily a deal breaker, but it's a hassle

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and it could make everything just that little bit more complicated.

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# It's a complicated situation

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# It's a complicated situation, mama

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'So, complicated and in need of complete renovation.

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'This is getting more demanding by the minute.

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'Still, you get a lot of house for the money

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'and that location near the hospital is hard to beat.

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'I asked along a local estate agent.'

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I think it'll appeal to a multitude of buyers.

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In its current state, it's going to probably be more investors,

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in which case, once they've refurbished the property,

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they'll let it out or sell it.

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'Right, let's talk numbers.'

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As I see this property today, it's probably worth about £160,000.

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That is allowing for some form of profit margin once it's refurbished.

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In terms of putting it back to market,

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I think the figure's probably around £225,000, but you might want to try for a little bit more.

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'How about letting it out?'

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Renting this property, you're probably looking at around £850 per calendar month.

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With a few nips and tucks, this property near the hospital could be a fantastic investment.

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Yes, it's got its issues, and that unregistered freehold is not to be ignored,

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but someone could be in for a good profit here.

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Let's find out who's ready to resuscitate this lot at the auction.

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OK, lot number 15. This is a three-bedroom detached house

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in need of refurbishment and I'm going to start the bidding

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at just £140,000.

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Thank you. 140 I do have on the back there. 140.

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142 I have down here in the front.

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144 we have. 146? 146 here.

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148? 148. Thank you.

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150? 150 seated.

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152? 152 I have.

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154 seated here at the front. 156?

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156. 158 here? 158 here.

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160, sir? 160 we have.

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2? 162.

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I'll give you a half if it's going to help you. £500.

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You going to walk away from it for £500?

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I've got 162. 162,500.

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Shaking his head down here in the front at me.

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162 and a half. 163, thank you, in the room.

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163 right-hand side.

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164? No? It's 163 with a fresh bid.

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163 I have, then. Once.

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163 twice.

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163,000 with you, then. Third and final time.

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Sold. Good value. 163. Well done, madam. Your number, please.

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'That successful bid of £163,000 came from Nicky,

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'a full-time mum who lives in the area.

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'I braved the damp dining room again to find out her plans.'

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-Nicky, lovely to meet you today.

-Hi.

-Well done. Congratulations.

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-Thank you.

-Are you new to this game? Is this the first time?

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-Completely, yes.

-First time you've ever bought anything at auction?

-Yes. Never been to an auction.

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Never done work on a house before. So it's all very new.

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-Have you bought this for a bit of a project?

-Yes, and an investment.

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Primarily as an investment, but also I thought it'd be a good challenge.

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-So this isn't a house for you to fall in love with and move into?

-No.

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So I've got to be careful when I do it up that I don't make it too personal.

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So what was it that you loved about this house enough to want to buy it?

0:20:380:20:42

Erm, because I was buying it purely for an investment,

0:20:420:20:45

location was the main thing, really, being close to the hospital.

0:20:450:20:51

I think it has a lot of character, as you walk in, it's got a lovely airy feel. It just seemed right.

0:20:510:20:58

'It didn't take Nicky long to make up her mind. Just one viewing, in fact.

0:21:010:21:05

'She went on her own, without any expert eyes for a second opinion.

0:21:050:21:09

'I hope she's taken into account all the work that needs doing.'

0:21:090:21:13

So let's talk about the down sides of this house.

0:21:130:21:16

What problems may be worrying you?

0:21:160:21:18

Structurally, it's fine. There's a lot of work to do internally

0:21:180:21:24

and outside with the back and front areas.

0:21:240:21:28

So there's nothing that really concerns me.

0:21:280:21:31

It's just quite a lot of work to get done.

0:21:310:21:34

-What about the smell of damp when you walk in? It really does hit you.

-It does, yes.

0:21:340:21:38

There was a flood at Christmas, but it wasn't discovered for a couple of weeks,

0:21:380:21:42

so that's a result of that.

0:21:420:21:46

That'll be the first job, to dry the property out.

0:21:460:21:49

Upstairs in the bedroom, it looks like the bay's dropping, you've got cracks.

0:21:490:21:53

Is that to do with the instalment of the windows?

0:21:530:21:55

Yes, I believe it is. I think it was when they put the replacement window in the bedroom

0:21:550:22:01

that they didn't prop up the bay properly, so it's dropped slightly.

0:22:010:22:06

But I understand it's not a problem structurally at all, it just needs levelling out.

0:22:060:22:11

'Nicky is also going to get the unregistered freehold title sorted out,

0:22:140:22:18

'which will tidy up the property's paperwork.

0:22:180:22:22

'What are her plans regarding the renovation?'

0:22:220:22:24

Internally, all ceilings will be skimmed, all the walls will be replastered,

0:22:240:22:30

new kitchen, bathroom, rewiring.

0:22:300:22:34

And then outside, the pointing needs doing, damp course and quite a bit of landscaping, front and back.

0:22:340:22:41

-So, yeah, quite a bit to keep me busy.

-Quite a lot to be getting on with.

0:22:410:22:45

-What sort of look are you going for?

-I think where it's got a lot of character,

0:22:450:22:50

I want to try and balance it between still keeping that

0:22:500:22:55

but bringing in some quite modern ideas, as well. So really striking a balance.

0:22:550:23:01

'Nicky wants to rent the house out to a family eventually

0:23:030:23:06

'and has a budget of around £35,000 to £37,000 for the makeover.

0:23:060:23:10

'She's hiring a team of builders who'll live and work on site

0:23:100:23:14

'and hopes it'll be finished within six to eight weeks.'

0:23:140:23:17

Who will project manage this? Who is going to be casting their beady eye over the work?

0:23:240:23:28

Well, I'll be involved in a lot of decisions,

0:23:280:23:31

but somebody else is actually going to be really leading the project.

0:23:310:23:36

But with regards to type of flooring and bathroom and kitchens,

0:23:360:23:42

that would be me.

0:23:420:23:44

So you've got all the fun stuff to do! That's not fair!

0:23:440:23:47

-All the hard work is left to somebody else!

-That's right!

0:23:470:23:50

-It's been lovely to meet you. Good luck with this.

-Thank you.

0:23:500:23:53

-I really like this house and I'm sure you're going to do a great job.

-That's very kind.

-Thank you.

0:23:530:23:58

I love this house, despite its damp, and I think Nicky has bought well.

0:24:000:24:04

It is a big one, though, for a first project.

0:24:040:24:07

I hope she's properly prepared. Find out how she gets on later in the programme.

0:24:070:24:13

'Coming up, I see that these little bungalows in Glasgow are really pretty spacious, but...'

0:24:140:24:19

In terms of the internal layout, it's disastrous!

0:24:190:24:23

'We return to Hampshire to find the damp problem was worse than expected.'

0:24:230:24:28

We ended up having to rebuild some walls, the kitchen floor had to be replaced.

0:24:280:24:34

'But first, in Cornwall, the schedule's been ripped up.'

0:24:350:24:39

We initially said six months.

0:24:390:24:41

But maybe that was a little bit optimistic.

0:24:410:24:43

'We're back in Delabole, Cornwall, where local couple Lee and Andrea

0:24:500:24:55

'bought this five-bed detached house at auction for £190,000.

0:24:550:25:00

'And it seemed as if fate was playing its part.'

0:25:000:25:04

We'd driven by two or three times and said, "Oh, if only that came on the market,

0:25:040:25:09

-"it would suit us down to the ground."

-No!

0:25:090:25:11

I was at work one day and Ange rang me up, "You'll never believe it, there's an auction sign up."

0:25:110:25:16

-Wow. So it's meant to be.

-Hopefully, yeah.

-You made it happen.

0:25:160:25:21

'The plan for this place was to redesign the interior, which was a boxy mish-mash of rooms

0:25:220:25:28

'and ill-fitted fixtures, and turn it into a spacious family home.

0:25:280:25:33

'We've returned almost two years later

0:25:340:25:37

'to find out how the story has progressed.

0:25:370:25:40

'Although not quite complete yet, the transformation is amazing.

0:25:420:25:48

'The sitting room originally had two fireplaces,

0:25:480:25:51

'but now has one in the centre of the room.

0:25:510:25:54

'At the back, Lee and Andrea have built a large extension.

0:25:540:25:59

'Inside, there's going to be a huge dining room and kitchen with doors looking out onto the garden.

0:26:000:26:06

'The smaller front room has also been replastered and prepared for decoration.

0:26:070:26:12

'Upstairs, it's a similar story for the four main bedrooms.

0:26:130:26:18

'But a completely new use has been found for the box room.'

0:26:190:26:24

OK, this used to be the box room,

0:26:240:26:26

which we've taken out and put a staircase up into the loft,

0:26:260:26:30

which, in future, we're going to make a bedroom, an en suite,

0:26:300:26:34

a master bedroom and a master en suite.

0:26:340:26:37

'That's a great idea. The property definitely lacked a master bedroom

0:26:370:26:41

'and it's worth sacrificing a box room for that.

0:26:410:26:45

'And the bathroom is well underway.'

0:26:460:26:49

In the bathroom, we went for an L-shaped bath.

0:26:490:26:53

This gave us more room to put a shower unit in.

0:26:530:26:57

We went for the textured tiles.

0:26:570:27:00

Even though they're a little bit more expensive than the other tiles we were looking at,

0:27:000:27:04

we really liked these so we decided just to go for the feature wall

0:27:040:27:08

and a little more behind the sink.

0:27:080:27:12

Lee put lights on under the bath

0:27:120:27:14

to create a little bit more atmosphere when you're soaking in the bath.

0:27:140:27:19

We've got under-floor heating to keep your toes nice and cosy.

0:27:190:27:24

And also we've got a towel rail to go here.

0:27:240:27:27

And then that should be the bathroom finished.

0:27:270:27:29

'Lee and Andrea have certainly done a great job of redesigning this house.

0:27:330:27:38

'It has taken a lot of time and energy, especially as Lee has done most of the work himself,

0:27:380:27:43

'along with the help of some very good friends.

0:27:430:27:46

'All this while still working full-time.

0:27:460:27:49

'And there's another reason it's taken two years to get to this stage.'

0:27:490:27:52

I had my daughter last year.

0:27:540:27:56

# Baby, baby

0:27:560:28:00

And she's now 11 months old.

0:28:000:28:02

So she's taken up a lot of my time.

0:28:020:28:05

# Baby, baby

0:28:050:28:07

'I bet she has! But at least little Isabella won't be short of space here.'

0:28:070:28:12

She'll have a choice of bedrooms.

0:28:120:28:14

We're not sure which one she's going to have yet.

0:28:140:28:18

She might have a bedroom and a play room.

0:28:190:28:22

But there'll be a lot of space for her and any other brothers or sisters that come along.

0:28:220:28:27

'Not sure anyone's told Lee about that!

0:28:270:28:31

'But with everything that's going on for Lee and Andrea,

0:28:310:28:34

'it's not surprising the schedule ran over.'

0:28:340:28:37

We initially said six months, but maybe that was a little bit optimistic.

0:28:380:28:43

I think, when we got into the house and had a look around,

0:28:430:28:48

it opened up a whole new can of worms where we found other problems

0:28:480:28:52

and decided, "Let's do it right now."

0:28:520:28:55

We weren't going to do the extension, we were going to move in,

0:28:550:28:58

but we thought, with the mess, let's do it all now and get it finished

0:28:580:29:03

and if it takes two years, then it takes two years or three years, so be it.

0:29:030:29:08

But we'll get it how we want it at the end.

0:29:080:29:10

'It looks as though Lee and Andrea's efforts have been well worth it

0:29:130:29:16

'and they'll end up with a fantastic family home.

0:29:160:29:19

'But how has this affected their original £20,000 budget?'

0:29:190:29:23

I think we've spent just over £30,000 at the moment,

0:29:230:29:27

so we are running over-budget.

0:29:270:29:30

We've probably got another £5,000 to spend, cos most of the things have been purchased now.

0:29:300:29:36

'Lee and Andrea bought the property for £190,000

0:29:360:29:40

'and will have spent approximately £35,000 on the development,

0:29:400:29:44

'making a total outlay of around £225,000.

0:29:440:29:48

'So what impact does this have on the value here?

0:29:480:29:51

'We asked two local property experts for their opinions.'

0:29:510:29:55

The layout's pretty solid for family use.

0:29:580:30:01

Great farmhousey kitchen across the back looking over what will become the garden

0:30:010:30:06

and a nice layout of four pretty-near double bedrooms and a bathroom up here.

0:30:060:30:11

Whilst it's not totally finished yet,

0:30:110:30:14

if they carry on with the quality of work that they've started,

0:30:140:30:18

there could be the makings of a really high-class home here.

0:30:180:30:21

The layout is good. There's a nice element of flow around the property.

0:30:230:30:29

I would say the best selling point would be the open-plan kitchen-diner

0:30:290:30:33

opening out onto the back garden.

0:30:330:30:36

It's a really nice family space

0:30:360:30:40

which, once finished, will look really good.

0:30:400:30:43

'Great feedback on Lee and Andrea's hard work, then.

0:30:460:30:49

'So what could the house be worth once it's finished?'

0:30:490:30:53

When the house is done and in all its glory,

0:30:530:30:56

it'll be worth about £265,000, £275,000 perhaps.

0:30:560:31:02

The resale value of this property will be £275,000.

0:31:020:31:07

OK, yeah. I'm very happy with that, to be honest.

0:31:070:31:11

-Yeah. 265, 270 is about what we expected.

-So, yeah, brilliant.

0:31:110:31:17

'A fantastic result for Lee and Andrea. Not only have they created a wonderful family home

0:31:220:31:27

'but they can relax in the knowledge that they have quite an asset should they sell in the future.

0:31:270:31:33

'Speaking of which, what's next for this young family?'

0:31:330:31:36

-We've got to arrange a first birthday party.

-Yep.

0:31:370:31:42

And then really crack on with the house and get it finished.

0:31:420:31:45

Get the flooring down and the carpets chosen and maybe some colour schemes for the walls

0:31:450:31:51

and all the stuff that I like.

0:31:510:31:53

I'm in Shettleston, traditionally regarded as a family area of Glasgow.

0:32:020:32:07

Not necessarily your first choice when it comes to property investment, but all that could be set to change

0:32:070:32:13

because in 2014, Glasgow is holding the Commonwealth Games

0:32:130:32:18

and the velodrome, swimming pool and village centre are all going to be very close to here,

0:32:180:32:22

so it could be that you need your trainers on to keep up with the property race.

0:32:220:32:27

The property, or properties, I'm here to see is a rather interesting proposition.

0:32:310:32:36

It's two semi-detached bungalows which are being sold as one lot.

0:32:360:32:41

They have a guide price of £85,000 to £95,000. Each has got one bedroom.

0:32:410:32:45

The big question is, will it be two for the price of one or double the trouble?

0:32:450:32:49

# I got double trouble

0:32:490:32:52

# I got double trouble

0:32:520:32:54

# I got double trouble

0:32:540:32:57

# Twice as much as anybody else, oh, yeah

0:32:570:33:00

'So you get two houses for around that guide price of £85,000.

0:33:000:33:04

'From the front, they don't look too bad,

0:33:040:33:06

'but the fact they're boarded up hints that they're in need of some TLC.'

0:33:060:33:12

Straight away, you can see, in very shabby condition inside,

0:33:120:33:16

although a real bonus, the height of the ceiling is very unusual for a bungalow

0:33:160:33:20

and it gives a great sense of space.

0:33:200:33:22

In terms of the internal layout, it's disastrous!

0:33:220:33:26

You've got this big room at the front, which could be a bedroom.

0:33:260:33:30

This large central area, which is a complete wasted space.

0:33:300:33:33

Another room there, which I presume is a rear sitting room.

0:33:330:33:37

Straight away I'm thinking surely you must be allowed to play around with this,

0:33:370:33:41

change the layout to give you at least two bedrooms.

0:33:410:33:44

Then through to the rear, where there's a reasonable sized lounge,

0:33:440:33:48

so you wouldn't be losing anything by making that into two bedrooms.

0:33:480:33:52

Then through into the kitchen.

0:33:520:33:55

So, all in all, a very, very, very large amount of space.

0:33:550:34:00

'I'm surprised by the Tardis-like qualities of these properties.

0:34:010:34:05

'But you'd certainly need to change the layout.

0:34:050:34:08

'The bathroom is tiny and crammed into the hallway area.

0:34:080:34:12

'And next door isn't looking great, either.

0:34:120:34:15

'Because this one has less furniture, you can see cracks in the walls

0:34:150:34:19

'and that porch area is in a right old state.

0:34:190:34:22

'But you'd be off your trolley not to see the potential here.'

0:34:220:34:26

There is some good news, because planning permission has been passed

0:34:280:34:32

to go up into the roof and add another bedroom.

0:34:320:34:35

That's going to save you at least two to three months

0:34:350:34:39

and, when it comes to renting this place out, you want to get your money in as quickly as you can.

0:34:390:34:44

'But would there be demand for two renovated bungalows around here?

0:34:480:34:52

'To find out, I invited a local estate agent along to tell me more.'

0:34:520:34:57

Shettleston probably sits about four miles away from Glasgow city centre.

0:34:570:35:02

It's easy to get to Glasgow city centre from here

0:35:020:35:04

and there's a wide variety of amenities and shops within the locale.

0:35:040:35:10

I've worked this area for a long time

0:35:100:35:12

and I didn't know this property existed.

0:35:120:35:14

So it's unusual to find such a unique, traditional bungalow style

0:35:140:35:19

in this part of Shettleston, because there's a mixture of council properties, cottages,

0:35:190:35:24

cottage flats, so this one kind of stands alone in that it's a wee bit different.

0:35:240:35:29

'Being the only bungalows like this in the vicinity is surely a good selling point,

0:35:340:35:38

'especially if they were extended.

0:35:380:35:40

'So, after renovation work has been finished on both,

0:35:400:35:43

'what rental potential does each one have?'

0:35:430:35:46

I would suggest a rental figure of somewhere between £450 and £500 per calendar month per unit.

0:35:460:35:53

'Not bad. And if sold on?'

0:35:530:35:56

I would estimate that each property, if it was refurbished,

0:35:560:36:01

would probably be worth about £95,000 to £100,000 per unit.

0:36:010:36:05

Well, you do get two properties for that £85,000 to £95,000 guide price,

0:36:070:36:13

but as you can see, they are in a right old state.

0:36:130:36:16

Still, that planning permission is good news

0:36:160:36:18

and I think it could turn these two very shabby bungalows into desirable properties.

0:36:180:36:24

Let's see who spotted the opportunity when it went under the hammer.

0:36:240:36:28

Next is lot number 29, a pair of semi-detached bungalows

0:36:280:36:33

offering a redevelopment opportunity if wished.

0:36:330:36:36

Looking for an opening bid of just £60,000.

0:36:360:36:39

£60,000 I've got, straight in.

0:36:390:36:41

£60,000. Who's coming back at 65?

0:36:410:36:43

£65,000. 65 I've got.

0:36:430:36:46

70,000. £70,000 it is. 75.

0:36:460:36:51

Is that 80, sir? 80,000 it is. At £80,000.

0:36:510:36:54

£80,000. 85.

0:36:540:36:56

85. 90,000. 90,000 it is.

0:36:560:36:59

£90,000. I'll go 92 if it helps.

0:36:590:37:03

£92,000. Yes, 92. I'll go 93 if it helps you, sir. 93.

0:37:040:37:08

93 it is. £93,000.

0:37:080:37:12

94. £95,000.

0:37:120:37:15

Shake of the head. It's your bid at £95,000.

0:37:150:37:18

£95,000. Are we all done?

0:37:180:37:21

Last chance. I'm going to sell at £95,000.

0:37:210:37:24

Anyone else coming in? Be very quick now.

0:37:240:37:27

Last chance. £95,000. Sold.

0:37:270:37:31

Congratulations, sir. And your bidding number is? Number 245.

0:37:310:37:35

'That successful bid of £95,000 came from David.

0:37:380:37:43

'He owns a double-glazing business and develops property on the side.

0:37:430:37:47

'I met up with him to hear about his plans.'

0:37:470:37:50

-David, good to meet you.

-Nice to meet you.

-Congratulations.

0:37:500:37:53

Tell me why you wanted to buy this pair of bungalows.

0:37:530:37:56

Basically, I've been born and brought up in this area,

0:37:560:38:00

so I've always had my eye on them and I've seen them deteriorate over the years

0:38:000:38:04

-and I thought it'd be a good investment.

-So what about them other than familiarity did you like?

0:38:040:38:10

It seems as if it's the only two bungalows in the street that aren't done up to a reasonable standard,

0:38:100:38:15

-so hopefully we can get them up to that reasonable standard and make a profit.

-They're big inside.

0:38:150:38:20

-They're deceiving from the outside. I didn't realise when I bought them.

-How do you mean?

0:38:200:38:25

I thought they were one-bedroom bungalows but there's a few rooms and an extension at the back.

0:38:250:38:30

-So you'd not seen them inside before you bought them?

-No, we couldn't get in the property when we turned up.

0:38:300:38:36

And presumably the planning was a big draw, as well.

0:38:360:38:40

-I didn't know about that, either.

-You didn't know about the planning?

-Not at all. That was a bonus.

0:38:400:38:46

-No kidding!

-Once we got them through, it was a bonus.

0:38:460:38:50

'You know what I'm going to say, don't you?

0:38:500:38:52

'Buying properties at auction without viewing them beforehand or looking at the paperwork is a bonkers approach.'

0:38:520:38:59

# Bonkers

0:38:590:39:01

'Thankfully, in this case, David has actually lucked out, both in terms of space and the planning approval.

0:39:010:39:06

'And there was the price he paid at auction.'

0:39:060:39:09

-Would you have paid more for them?

-Yes.

0:39:090:39:12

-How much more?

-I think we would've gone up to about £75,000 each for them, but they were 43 each.

0:39:120:39:19

So you paid 95 for them and you would've gone to 150?

0:39:190:39:23

Yes, 150, that was our budget.

0:39:230:39:26

-So you saved yourself 55 grand.

-Yes.

0:39:260:39:28

It's the first time I've bought a property at an auction,

0:39:280:39:32

but what a buzz I got from it. Afterwards, I felt really pleased.

0:39:320:39:35

What are you going to do with the extra money?

0:39:350:39:38

-Basically, I bought another property at that auction.

-Did you?

-Yeah.

0:39:380:39:42

-That one was walk-in condition, so it's rented out now.

-Wow!

0:39:420:39:46

'David's done well with these bungalows.

0:39:490:39:52

'Although this was his first auction purchase, he's been a developer for some time.'

0:39:520:39:58

I started buying property when I was about 17, so every year I've bought one property,

0:39:590:40:04

but this year we've bought three.

0:40:040:40:06

It's just more of a nest egg for when I retire.

0:40:060:40:10

-Right. How big is your portfolio now?

-I have about 14 properties.

0:40:100:40:15

So that gives your age away a bit. That's great.

0:40:150:40:18

-So the idea is to buy, do up and rent out, then?

-Yes.

0:40:180:40:23

-What are you going to do with them?

-We'll look at planning permission and just get them renovated

0:40:230:40:28

and get them up to a reasonable standard.

0:40:280:40:31

Right. What about the internal layout?

0:40:310:40:33

-Cos it struck me when I first saw them that it's terribly bad use of space.

-Yeah.

0:40:330:40:39

It's something that I'll get my builders to come in and look at

0:40:390:40:43

and we'll get it redrawn up exactly how we want it

0:40:430:40:46

and get things moved about exactly where we need them.

0:40:460:40:49

-Are you going to convert it from one bedroom to more?

-Yes, hopefully there'll be three bedrooms.

0:40:490:40:55

-Three?

-Yeah, because hopefully we can take something upstairs.

-Ah, of course.

0:40:550:41:00

# Now there are three

0:41:000:41:03

# Steps to heaven

0:41:030:41:04

'Going up into the loft to create a third bedroom

0:41:050:41:08

'will take David closer to rental income heaven. But how much will he need to spend?'

0:41:080:41:14

I think it'll cost between £35,000 and £40,000 to get them up to a reasonable level.

0:41:140:41:21

-Per property?

-Per property.

0:41:210:41:24

We were hoping about £100,000, each one would cost us, for each bungalow,

0:41:240:41:29

so we've got 57 to play with in each one,

0:41:290:41:31

but hopefully it'll be between 35 and 40.

0:41:310:41:34

'David's given himself a generous year to complete the project.

0:41:350:41:40

'As he has a double-glazing business and rental properties to manage,

0:41:400:41:44

'he'll bring in a team of professionals to do the work.'

0:41:440:41:47

At the start, I was very hands-on, but now, because of the size of us,

0:41:470:41:52

I basically have to manage everything, so I'm just on a managerial status now.

0:41:520:41:57

-Do you miss the hands-on stuff?

-Yeah, I do.

0:41:570:42:00

I miss the idea of going into customers' houses

0:42:000:42:04

and the banter you have with customers. You don't have that anymore.

0:42:040:42:07

So it's just guys that are all babies that you look after now.

0:42:070:42:15

-Well, we look forward to seeing it. Congratulations.

-Thank you.

0:42:150:42:18

Well, what a doubly positive result for David.

0:42:180:42:21

Not only did he get the properties for £55,000 less than he was willing to spend,

0:42:210:42:25

but he discovers there's planning permission on them, which he didn't know about. Fantastic.

0:42:250:42:30

A year to get them sorted out is a long time, and that's money which could be in the bank from rentals,

0:42:300:42:35

so I hope it's quicker than that.

0:42:350:42:38

You can find out how he gets on later in the show.

0:42:380:42:41

Well, time has passed since we last saw our plucky buyers.

0:42:440:42:47

-Ah. Have they been firing on all cylinders?

-Let's go back and find out.

0:42:470:42:51

'We're back in the Southampton suburb of Shirley,

0:42:560:42:59

'where local lady Nicky bought this three-bed detached house at auction for £163,000.

0:42:590:43:05

'She wanted to get into property developing and this was her first project.

0:43:050:43:10

'The main problem with this renovation was obvious as soon as you entered.'

0:43:100:43:14

-What about the smell of damp when you walk in? It really does hit you.

-It does, yeah.

0:43:150:43:19

There was a flood at Christmas but it wasn't discovered for a couple of weeks,

0:43:190:43:23

so that's a result of that, so that'll be the first job, to dry the property out.

0:43:230:43:29

'Once the damp was addressed, plus one or two other problems, Nicky's plan was to renovate the house

0:43:340:43:39

'with her team of builders so she could use it as a rental machine.

0:43:390:43:43

'We've returned three months later to see how the development has turned out.

0:43:430:43:47

'Straight away, coming through the front door, you're no longer struck by the smell of damp

0:43:570:44:01

'or a rotting interior, but by the fantastic transformation

0:44:010:44:05

'Nicky and her team have managed here.

0:44:050:44:08

'Under the stairs, which was basically dead space,

0:44:080:44:11

'a downstairs toilet has been installed.

0:44:110:44:14

'The large sitting room with its out-of-date fireplace

0:44:170:44:20

'now looks as good as new.

0:44:200:44:22

'And it's a similar story in the dining room.

0:44:230:44:26

'Next to the dining room, the kitchen had really needed updating,

0:44:300:44:34

'and Nicky has certainly delivered on that.'

0:44:340:44:37

I decided to go for cream units and wooden worktops and also a wooden floor, as well.

0:44:390:44:45

The tiles, I decided to go for the mosaic design

0:44:450:44:49

because I was slightly restricted by the curve round here,

0:44:490:44:53

and with small tiles, you get the flexibility to be able to tile that area.

0:44:530:44:57

This is the window that was slightly raised to enable the sink to be put in,

0:44:570:45:03

and that also gave the chance for more work surface, as well.

0:45:030:45:08

'Moving upstairs, all three bedrooms have been given the same treatment.

0:45:140:45:18

'And the window in the front bedroom, which was previously crumbling, has been repaired.

0:45:240:45:28

'The bathroom has also been removed and entirely replaced.

0:45:280:45:32

'Now there is a superb finish on the property

0:45:350:45:37

'and no sign of any damp. How was that tackled?'

0:45:370:45:42

There were two problems. There was the flooding at Christmas because of a burst pipe,

0:45:420:45:46

so we ended up having to rebuild some of the walls,

0:45:460:45:49

the kitchen floor had to be replaced.

0:45:490:45:52

And also there was an issue with damp, which was mainly due to the driveway,

0:45:520:45:57

which had constantly been built upon layer upon layer

0:45:570:46:00

so it's actually obscuring the damp course.

0:46:000:46:03

So that resulted in a few problems.

0:46:030:46:06

The driveway had to be dug up and re-levelled.

0:46:060:46:09

So, basically, it meant it was a bigger job than was first anticipated.

0:46:090:46:13

'That damp problem turned out to be quite a headache,

0:46:200:46:23

'but thanks to thorough investigation and a new damp-proof course, it's all sorted now.

0:46:230:46:27

'But how did that affect the budget?'

0:46:270:46:30

The budget actually ended up being £10,000 over the anticipated cost.

0:46:310:46:36

Initially, I was looking at 35 to perhaps 37.

0:46:360:46:40

The final figure was 47.

0:46:400:46:43

A lot of that was the extra work that had to be done on the exterior with regards to the driveway

0:46:430:46:48

and also the extra work as a consequence of the damp problem and the flooding.

0:46:480:46:53

'An overspend of £10,000 is a bitter pill to swallow.

0:46:530:46:58

'But as Nicky plans to keep the house as an investment,

0:46:580:47:01

'getting all the work done properly was paramount

0:47:010:47:04

'and has given her vital experience.'

0:47:040:47:06

As a first project, it probably was quite adventurous and if I didn't have the support of the builders

0:47:070:47:13

and the help and guidance that I did have, I undoubtedly would've struggled,

0:47:130:47:18

so I was lucky to have the support I did.

0:47:180:47:21

'Nicky bought the property for £163,000

0:47:240:47:28

'and has spent 47 grand on the development,

0:47:280:47:31

'adding up to a total £210,000.

0:47:310:47:33

'So has her first venture been a success?

0:47:330:47:36

'We asked two local estate agents for their appraisal.'

0:47:360:47:39

It's a lovely size family property in a sought-after location and it's been decorated to a high standard.

0:47:420:47:48

The bedroom sizes are ideal for the rental market and sharers.

0:47:480:47:53

It would appeal to professionals who work at the hospital

0:47:530:47:57

and young families.

0:47:570:47:59

My first impression of the property from walking in, it's like a new home.

0:48:020:48:06

It's like a show home. It's been fully refurbished and it looks very nice.

0:48:060:48:10

I think, at this moment in time, this property is better off

0:48:100:48:13

as a rental property. I think it'll generate a good income.

0:48:130:48:17

'All positive. And it seems Nicky's idea of renting it out is spot on.

0:48:200:48:23

'How much could she achieve?'

0:48:230:48:27

I'd expect this property to achieve £995 per calendar month.

0:48:270:48:31

I'd expect it to achieve around £1,000 per calendar month.

0:48:310:48:35

I'm very pleased with those values, yes. It's above what I thought, to be honest. So that's very good news.

0:48:350:48:41

'Bonus. Nicky's first project seems to be paying off.

0:48:410:48:45

'On those numbers, she looks to be in for a yield of almost six percent.

0:48:450:48:49

'In the current climate, you won't find a return like that by investing in a bank.

0:48:490:48:53

'But if she were to sell, what kind of price could she be looking at?

0:48:530:48:57

'Remember, her total outlay here is £210,000.'

0:48:570:49:01

If I was to put this property on the market for sale, I would expect to achieve £235,000.

0:49:030:49:08

If I was to put this property on the market for sale today, I'd put it on for £249,950.

0:49:080:49:13

-I prefer the £249,950.

-SHE LAUGHS

0:49:130:49:17

No, really pleased with that valuation.

0:49:170:49:20

# Smiley faces

0:49:200:49:23

# Smiley faces

0:49:230:49:26

'Nicky's got every reason to smile.

0:49:260:49:28

'Despite her budget overspend, she could still make a pre-tax profit of between £25,000 and £40,000

0:49:280:49:35

'if she changed her mind and decided to sell.

0:49:350:49:38

'So, is she pleased with her first project?'

0:49:380:49:41

I'm really pleased with how the project's gone

0:49:410:49:43

and I'll definitely do another one.

0:49:430:49:45

It's been a learning curve, as well, but thoroughly enjoyable.

0:49:450:49:49

'We're back in Shettleston, a suburb of Glasgow,

0:49:550:49:59

'where these two one-bedroom bungalows sold at auction for £95,000 to David.

0:49:590:50:04

'He owns a glazing company but also develops property on the side.

0:50:040:50:09

'David was so taken with them that he bought them without seeing how spacious they were inside.

0:50:090:50:14

'But that wasn't his only surprise.

0:50:140:50:17

'The properties came with planning permission to extend and convert the attic space.'

0:50:170:50:22

Presumably, the planning was a big draw, as well.

0:50:220:50:24

-I didn't know about that, either.

-You didn't know about the planning?

-Not at all. That was a bonus.

0:50:240:50:31

-No kidding!

-Once we got them through, it was a bonus.

0:50:310:50:34

# Oh, lucky you

0:50:340:50:37

# If it's really true, oh, lucky you

0:50:370:50:40

'With planning permission already in place, David intended to turn these tired old bungalows

0:50:410:50:46

'into three-bedroom family homes within a year.

0:50:460:50:50

'But we've come back just six months later to see how things have moved on.

0:50:500:50:54

'Well, clearly a lot of work has been carried out,

0:50:570:51:00

'although the renovation is not yet complete.

0:51:000:51:03

'The exterior of the properties used to be completely overgrown,

0:51:030:51:07

'but that has now all been cleared in preparation for turf to be laid.

0:51:070:51:11

'The old windows have been removed and new frames installed

0:51:110:51:15

'ready to be glazed when the refurbishment is finished.

0:51:150:51:18

'Inside, all the downstairs rooms have been stripped back to their bare walls and replastered.

0:51:200:51:27

'The bathroom, which was totally outdated, has been removed and will all be modernised.

0:51:270:51:34

'What used to be the lounge is now destined to be the dining room.

0:51:340:51:38

'At the back of the house, off the dining room,

0:51:390:51:42

'the old kitchen has made way for a new, more contemporary layout.'

0:51:420:51:46

Downstairs, the houses are set out in exactly the same way.

0:51:490:51:54

We have our bedroom number one here, there's the dining room here and the kitchen right behind,

0:51:540:52:00

the toilet right behind me and the lounge here.

0:52:000:52:03

We've redone all the plaster work in the house.

0:52:030:52:06

The plumbing has been redone and all the electrics have been redone.

0:52:060:52:11

'David's opened up the downstairs living space.

0:52:110:52:14

'But it's upstairs that's seen the biggest change.'

0:52:140:52:17

# Change

0:52:170:52:19

# Nothing stays the same

0:52:190:52:22

'He had planned to make these bungalows into three-bed houses,

0:52:220:52:25

'but it seems he's managed to get four bedrooms in.

0:52:250:52:29

'And all a very decent size.'

0:52:290:52:33

# Nothing stays the same

0:52:330:52:36

'With a bathroom, as well.

0:52:360:52:39

'Extending into the roof has made a massive impact on the size

0:52:390:52:43

'and, potentially, the value of these former bungalows.

0:52:430:52:47

'But it wasn't all plain sailing.'

0:52:470:52:49

The roofs were a slight problem, because we started doing them in the winter time

0:52:490:52:54

and the snow stopped us from working.

0:52:540:52:57

But the most drastic part of the build was getting the roofs up.

0:52:570:53:04

Once they were up, everything was quite quick.

0:53:040:53:07

'It's taken six months to get to this point and David reckons they should take another two months to complete.

0:53:080:53:15

'How's he fared with the finances?'

0:53:150:53:18

So far, we've spent about £40,000 on each property.

0:53:180:53:21

I think another £17,000 on each property should be sufficient to get them finished off.

0:53:210:53:26

'Wow! That's a total spend of £114,000 on renovations alone.

0:53:290:53:36

'A definite challenge when managing the cash flow.'

0:53:360:53:40

I think, because this is the first big refurbishment I've done,

0:53:400:53:43

what we've learnt is you do need a massive cash flow to keep the builds going.

0:53:430:53:49

Without that, they would come to a stop dead quick. They eat up the money.

0:53:490:53:54

'This is a serious investment on David's part, and because of what's at stake,

0:53:550:54:00

'he's changed his mind about what he'll do with the houses once they're finished.'

0:54:000:54:04

Because we've done so much work in the house, I think renting the properties,

0:54:040:54:08

if somebody came in and didn't treat it right,

0:54:080:54:11

I wouldn't be happy at all, so I think we're going to sell them.

0:54:110:54:14

'David bought the properties for £95,000

0:54:170:54:20

'and estimates refurbishment costs of £114,000,

0:54:200:54:25

'making his likely outlay about £209,000.

0:54:250:54:29

'So, have the changes he's made

0:54:290:54:31

'increased the value of these two bungalows?

0:54:310:54:34

'We asked some local estate agents for their thoughts.'

0:54:350:54:39

Amazing. Quite a transformation since when I was here previously.

0:54:400:54:45

He's replastered all the walls, skirtings, fascias. It's looking good.

0:54:450:54:52

Well, he's obviously decided to make the property larger,

0:54:520:54:55

maybe go for a family home rather than something smaller to rent out,

0:54:550:54:58

which is great because in the area,

0:54:580:55:00

there's not a huge amount of properties of this size, so he's probably gone for the right choice.

0:55:000:55:05

The properties increased in size from one bedroom to four bedrooms

0:55:070:55:12

and, surprisingly, the rooms are very spacious

0:55:120:55:17

and a very good family size.

0:55:170:55:19

At the moment, there is a reasonable amount of work to complete them,

0:55:190:55:23

including bathrooms and windows,

0:55:230:55:26

but apart from that, it's mainly cosmetic.

0:55:260:55:29

'So, once the finishing touches have been done,

0:55:310:55:34

'what kind of price could David expect to achieve when he puts them up for sale?'

0:55:340:55:38

Upon completion, I think the resale of these properties would be

0:55:380:55:43

between £145,000 and £150,000 each.

0:55:430:55:47

When the properties are completed,

0:55:470:55:49

I think, in the current market conditions and subject to a satisfactory home report,

0:55:490:55:55

they would each fetch in the region of £155,000.

0:55:550:55:59

I think that's exactly what I was looking for. Relieved.

0:55:590:56:04

'No wonder he's relieved. Those valuations could give David

0:56:040:56:08

'a pre-tax profit of between £81,000 and £101,000, minus the usual selling expenses.'

0:56:080:56:15

# Go on, take the money and run

0:56:160:56:19

# Go on, take the money and run

0:56:210:56:24

'With the amount of capital riding on this development,

0:56:240:56:28

'David has decided to sell rather than rent out these properties.

0:56:280:56:31

'But even with the estate agents' rental values at between £650 and £750 each per calendar month,

0:56:310:56:39

'David's just satisfied that he has certainly transformed these old bungalows.'

0:56:390:56:45

It's really nice to see them. From when I was younger, they had gone down to such a bad standard

0:56:450:56:50

and now they're starting to look really nice again. It gives you a wee breath of fresh air.

0:56:500:56:55

-We'll see you again soon when more brave bidders hit the auction room.

-See you then.

-Goodbye.

-Goodbye.

0:56:570:57:03

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0:57:040:57:08

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0:57:080:57:12

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