0:00:02 > 0:00:05The value of homes can go down as well as up.
0:00:05 > 0:00:08So it pays to buy at the right price.
0:00:08 > 0:00:12One way to do that is to buy your home under the hammer.
0:00:37 > 0:00:43If you'd like to have a go at buying at auction, now could be the perfect time to start.
0:00:43 > 0:00:48The market is always changing so you have to judge the best time to buy.
0:00:48 > 0:00:53- Today's bidders put their money on the line.- Here's what they bought.
0:00:54 > 0:00:58'In Cheshire, there's big scope for this little bungalow.'
0:00:58 > 0:01:03It's a good size space. Overall, I'm loving this place.
0:01:03 > 0:01:07'I need some extra space in this London semi.'
0:01:07 > 0:01:13The answer to this problem may lie the other side of this wall.
0:01:14 > 0:01:20'I look at this Victorian mid-terrace in Derby, and wonder if it's all it claims to be.'
0:01:20 > 0:01:24How the heck you call THAT a third bedroom?
0:01:25 > 0:01:28'These properties have been sold.
0:01:28 > 0:01:33'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:36 > 0:01:39'I'm in the Cheshire town of Nantwich.
0:01:39 > 0:01:43'It's steeped in history, with the buildings to prove it.
0:01:43 > 0:01:47'This beautiful place is experiencing a renaissance,
0:01:47 > 0:01:49'as independent shops and cafes
0:01:49 > 0:01:53'have been creeping in, attracting new admirers.'
0:01:53 > 0:02:00Nantwich is a desirable place to live and property prices are quite high as a result.
0:02:00 > 0:02:06When you hear about a two-bedroom bungalow with a guide price of 115,000 quid
0:02:06 > 0:02:09you think it's got to be worth a lot more.
0:02:09 > 0:02:15It looks a bit dated outside. Let's see what it's like inside.
0:02:15 > 0:02:19'It's not just dated, it looks pretty unkempt, too.
0:02:19 > 0:02:22'It's been empty for over two years.
0:02:22 > 0:02:27'That doesn't mean it doesn't have potential, though.'
0:02:29 > 0:02:31So, what have we got? Wow!
0:02:31 > 0:02:35Nice entrance! A really wide hallway.
0:02:35 > 0:02:39And a parquet floor. I'd love to see that sorted out.
0:02:39 > 0:02:45Two bedrooms. That's the first one. Parquet floor through there.
0:02:45 > 0:02:49It's huge and it's got an open fire. You've got the bathroom there.
0:02:49 > 0:02:55The second bedroom. It's interesting both bedrooms are on the front.
0:02:55 > 0:02:57Both got open fires. Really nice.
0:02:57 > 0:03:01Through to the rear, where the kitchen is. Good size.
0:03:01 > 0:03:06You've got a pantry. I mean, it's terribly in need of some work!
0:03:06 > 0:03:09Wants completely stripping out, but it's a good size.
0:03:09 > 0:03:13The whole bungalow... It's really surprising.
0:03:13 > 0:03:16Through here, you've got a utility area.
0:03:16 > 0:03:20A place where coal used to be stored.
0:03:20 > 0:03:24Fantastic for your washing machine. Views onto the garden.
0:03:24 > 0:03:26It's fantastic!
0:03:26 > 0:03:31# Fantastic day! #
0:03:31 > 0:03:34'Looking past the rundown state,
0:03:34 > 0:03:37'there's plenty of space.
0:03:37 > 0:03:42'Also, the bathroom's a decent size, though obviously needs modernising.'
0:03:42 > 0:03:49Through into a living room area. Not a bad size. I like the open fire.
0:03:49 > 0:03:51But, uh-oh! What is going on here?
0:03:51 > 0:03:59That is textbook damp. Look at the mould that's growing on there.
0:03:59 > 0:04:03Mustn't get too enthusiastic! Be nice in a biology class.
0:04:03 > 0:04:07In a house, it's not ideal. What's causing it?
0:04:07 > 0:04:12Something to do with this bay window. I need to go outside.
0:04:12 > 0:04:18'Damp is a common problem with houses that have been unoccupied.
0:04:18 > 0:04:21'If you can find the cause,
0:04:21 > 0:04:23'you can usually find the solution.'
0:04:23 > 0:04:26It's not exactly rocket science.
0:04:26 > 0:04:30It looks like the covering over that bay window has gone.
0:04:30 > 0:04:34My guess is it was lead and it's been stolen.
0:04:34 > 0:04:37The cast iron guttering has also gone.
0:04:37 > 0:04:40It's not going to be that expensive to sort out.
0:04:40 > 0:04:45Replace the covering and that should solve that problem.
0:04:45 > 0:04:49While I'm out here, here's a nice bonus. A garden!
0:04:49 > 0:04:54Fantastic. It needs sorting out, but it's a good size space.
0:04:54 > 0:04:57Overall, I'm loving this place.
0:04:57 > 0:05:01'You could extend the bungalow, making it a three-bed.
0:05:01 > 0:05:06'Or you could knock it down and put up a couple of new-builds.
0:05:06 > 0:05:12'I asked along a local estate agent to hear his thoughts.'
0:05:12 > 0:05:15An idea would be to knock the property down
0:05:15 > 0:05:20and build a pair of semi-detached houses on here
0:05:20 > 0:05:22for greater return on my investment.
0:05:22 > 0:05:27'If you wanted to instead restore it to its former glory,
0:05:27 > 0:05:30'it could rent for up to £625 per month.
0:05:30 > 0:05:34'But how much could it sell for?'
0:05:34 > 0:05:37If it was kept as a two-bedroomed detached bungalow,
0:05:37 > 0:05:43I would recommend it going on the market in the region of £200,000.
0:05:43 > 0:05:50There is room to expand it into a three-bedroomed bungalow, with land to the rear of the property.
0:05:50 > 0:05:55If you were to do that, I would recommend you put as a resale value
0:05:55 > 0:05:59somewhere in the region of £240,000 to £250,000.
0:06:01 > 0:06:05What a surprising little property this turned out to be.
0:06:05 > 0:06:07It's a bungalow with lots of options.
0:06:07 > 0:06:11Extend. Knock it down and build something in its place.
0:06:11 > 0:06:17I think it's a great one to go for. Who fancied it when it went under the hammer?
0:06:17 > 0:06:20Lot number 7. Nantwich.
0:06:20 > 0:06:2280,000, going to say.
0:06:22 > 0:06:2680 I'm bid. 85 is it now? 85 it is.
0:06:26 > 0:06:30£90,000. At £90,000. 95?
0:06:31 > 0:06:33£95,000. 100?
0:06:33 > 0:06:38£100,000. 105? 105. 106?
0:06:38 > 0:06:40107. 108. 109.
0:06:40 > 0:06:43110. 111. 112.
0:06:43 > 0:06:47113. 114. 115.
0:06:47 > 0:06:52116. 117. 118. 119.
0:06:52 > 0:06:54120. 121.
0:06:54 > 0:06:55Yeah? 122. 123.
0:06:55 > 0:06:57124.
0:06:57 > 0:07:01125. 126. 127. 128.
0:07:01 > 0:07:04129. 139. 131.
0:07:04 > 0:07:07132. 133.
0:07:07 > 0:07:10At £133,000...
0:07:10 > 0:07:13134. 135. 136. 137.
0:07:13 > 0:07:17Yes? 138. 139.
0:07:17 > 0:07:18140. 141.
0:07:20 > 0:07:24Shaking his head. With you, sir, at 141,000.
0:07:24 > 0:07:28At 141,000 for the first time.
0:07:29 > 0:07:32At 141 for the second time.
0:07:32 > 0:07:37Third and final time at £141,000...
0:07:38 > 0:07:40It's your lot, sir. Well done.
0:07:40 > 0:07:47'The successful bid of 141,000 was made by local entrepreneur Tony.
0:07:47 > 0:07:52'I wanted to find out why he paid £26,000 over the guide price.'
0:07:52 > 0:07:55I fell in love with the property.
0:07:55 > 0:08:02Bungalows are highly sought-after in the area, which made it an attractive proposition.
0:08:02 > 0:08:06When I saw the guide price, it was one I was very keen to get.
0:08:06 > 0:08:10So you bought it for you to do up, or what?
0:08:10 > 0:08:13It's basically part of a 20-year plan.
0:08:13 > 0:08:17I'm buying a number of properties in the area.
0:08:17 > 0:08:21I've got one very close by. This is my second property.
0:08:21 > 0:08:25I'm looking to rent it out so it'll be refurbished to a high standard.
0:08:25 > 0:08:31- What's your experience?- In terms of property, very little, to be fair.
0:08:31 > 0:08:34- What do you do? - I run a computer company.
0:08:34 > 0:08:38- We make computers that make special effects for films.- Wow!
0:08:38 > 0:08:42I stepped away from it four years ago. It's run for me now.
0:08:42 > 0:08:44It's a small business.
0:08:44 > 0:08:47Just to follow a passion, really,
0:08:47 > 0:08:53- I became a professional dance teacher as well. - A dance teacher? Fantastic!
0:08:53 > 0:08:56- It keeps me fit. - What kind of dancing?
0:08:56 > 0:08:59The main one I do is ceroc, a modern French jive,
0:08:59 > 0:09:05probably the most popular partner dancing in the world, and great fun.
0:09:05 > 0:09:07'Must give it a go some time!
0:09:07 > 0:09:11'Tony's 20-year plan is to make enough money from development
0:09:11 > 0:09:14'for a pension when he retires.
0:09:16 > 0:09:23'This is his second property and I was intrigued to know what he was going to do with it.'
0:09:23 > 0:09:27The kitchen, as is, is going to be converted into a third bedroom.
0:09:27 > 0:09:30We'll have three large double bedrooms.
0:09:30 > 0:09:34The lounge at the moment is fairly small.
0:09:34 > 0:09:38We're going to be creating an extension at the back
0:09:38 > 0:09:41with a pitch roof coming away from the property.
0:09:41 > 0:09:45Then that will link in to the extension.
0:09:45 > 0:09:48- The lounge will be 21, 22 foot long. - Wow.
0:09:48 > 0:09:53By about 17 foot wide, in an L-shape.
0:09:53 > 0:09:57Which is proportionate to the bedrooms in the property.
0:09:57 > 0:10:02Then the utility room, as is, will become the new kitchen.
0:10:02 > 0:10:09'The plans sound good but I wonder if Tony thought about knocking it down and rebuilding.'
0:10:12 > 0:10:18It's something I looked at and had a few tentative enquiries to the planning department.
0:10:18 > 0:10:22I felt that access was going to be quite restrictive.
0:10:22 > 0:10:25It is a bungalow and they are in high demand.
0:10:25 > 0:10:30I felt that it was probably safer, as it's my first project,
0:10:30 > 0:10:32to stick with what I've got.
0:10:32 > 0:10:37At least I've then got a property which I know is desirable.
0:10:37 > 0:10:39'That's pretty sensible, really.
0:10:39 > 0:10:42'Tony paid 141,000 for this bungalow
0:10:42 > 0:10:46'and has a further budget of 40,000.
0:10:46 > 0:10:50'He discovered that he can get a grant of £15,000 from the council.'
0:10:50 > 0:10:54The property's been empty for more than two years.
0:10:54 > 0:10:58It makes me eligible for the landlord regeneration scheme.
0:10:58 > 0:11:02'The council takes charge of the lettings for five years.
0:11:02 > 0:11:05'They give Tony a list of tenants,
0:11:05 > 0:11:08'and the council pay the market rental rate.
0:11:08 > 0:11:10'Sounds a good idea.
0:11:10 > 0:11:15'How long does he think the renovation is going to take?'
0:11:18 > 0:11:24- Six to seven weeks.- What? Including the extension?- Yeah.- Ha!
0:11:25 > 0:11:32I paid cash for the property. The longer it's empty, in theory, I'm losing money.
0:11:32 > 0:11:37But I'm not on a strict deadline. If it takes ten weeks, that's fine.
0:11:37 > 0:11:44'Tony seems quite relaxed about the timescale, but was he just as laid back at the auction?
0:11:44 > 0:11:48'It was the first time he'd bought under the hammer.'
0:11:48 > 0:11:52It was great! Fantastic! I thought I'd be nervous.
0:11:52 > 0:11:55The bidding was going back and forth.
0:11:55 > 0:12:00My head was like a nodding dog! Must have looked ridiculous!
0:12:00 > 0:12:06- I'm delighted you got it. Congratulations. - Thanks, Martin. God bless you.
0:12:08 > 0:12:14I think Tony picked up a really good property for the second one in his 20-year plan.
0:12:14 > 0:12:19It is great to set your sights and have a goal like Tony has.
0:12:19 > 0:12:24In terms of what he's going to do, that extension, is it worth doing?
0:12:24 > 0:12:29I'm not sure, and certainly his timescale is a little optimistic.
0:12:29 > 0:12:32You can find out if it'll be a slow waltz
0:12:32 > 0:12:37or a quickstep to success for Tony later in in the show.
0:12:43 > 0:12:46'I'm in southeast London today, in Plumstead,
0:12:46 > 0:12:49'a few miles from Woolwich,
0:12:49 > 0:12:52'to see a property that's typical of the area.
0:12:52 > 0:12:55'It's a 1930s three-bed semi
0:12:55 > 0:12:59'with off-street parking and a sizeable garden.
0:12:59 > 0:13:04'It sits right on the edge of the conservation area Plumstead Common.'
0:13:08 > 0:13:16That may or may not have implications for doing this house up. We'll talk about that later.
0:13:16 > 0:13:21It's got three bedrooms. The guide price was 160,000 to 165,000.
0:13:21 > 0:13:25The windows look like they're brand new.
0:13:25 > 0:13:28I love the period arch and those bays.
0:13:28 > 0:13:32Will there be any surprises inside? Let's take a look.
0:13:32 > 0:13:38'This could be a typical three-bed semi in need of modernisation.
0:13:38 > 0:13:43'You know that deal - new kitchen, bathroom, redecoration throughout.
0:13:43 > 0:13:48'Auction properties of this age usually need all of the above,
0:13:48 > 0:13:52'but that double glazing gives me positive vibes.'
0:13:53 > 0:13:57# ..Sweetest feeling Baby, the sweetest
0:13:57 > 0:13:58# Sweetest feeling... #
0:14:00 > 0:14:04Now...that IS a surprise.
0:14:04 > 0:14:07It's like the decorating fairies have been in
0:14:07 > 0:14:10and completely revamped this place.
0:14:10 > 0:14:13You can smell fresh paint. It's been decorated.
0:14:13 > 0:14:18There's no banister, so that's dangerous as it is.
0:14:18 > 0:14:20A big store cupboard in there
0:14:20 > 0:14:23and a very disappointing kitchen.
0:14:23 > 0:14:28This kitchen is tiny, not big enough for a three-bedroom house.
0:14:28 > 0:14:35But I have a feeling that the answer to this problem may lie the other side of this wall.
0:14:36 > 0:14:39A-ha! As I suspected!
0:14:39 > 0:14:43Whoever had this home previously has taken this wall out
0:14:43 > 0:14:47to make these two rooms one - the lounge here, the dining room here.
0:14:47 > 0:14:52I wouldn't have taken this wall out. I'd put this wall back up.
0:14:52 > 0:14:56I would take this wall out here to really open the kitchen up.
0:14:56 > 0:15:00You've got room for a lovely big breakfast table,
0:15:00 > 0:15:05access into the garden, then this will be a fantastic family home.
0:15:05 > 0:15:09As it stands at the moment, that kitchen is too small.
0:15:09 > 0:15:14'Before any walls are removed, check they aren't supporting ones.
0:15:14 > 0:15:18'In this case, I don't think that's a problem.'
0:15:18 > 0:15:22Let's have a look upstairs. We've got a bathroom through here.
0:15:22 > 0:15:24That does need an update.
0:15:24 > 0:15:28You know I said it's all been recently decorated?
0:15:28 > 0:15:33On close inspection, it just looks as though all the rooms have had
0:15:33 > 0:15:39the old-fashioned wallpaper painted, the tiles have just been painted.
0:15:39 > 0:15:42You've got a bedroom here.
0:15:42 > 0:15:47Really nice bedroom to the front and, typically for a 1930s house,
0:15:47 > 0:15:49you've got the box room.
0:15:49 > 0:15:51You can't really call it bedroom.
0:15:51 > 0:15:55It would be OK as a nursery or a good size office space.
0:15:55 > 0:15:58You know what? It's a cool house.
0:15:58 > 0:16:03Big garden, off-street parking - for the price, you've got a good one.
0:16:03 > 0:16:06'The space that's lacking in bedroom three
0:16:06 > 0:16:10'is more than made up for by the huge back garden.'
0:16:10 > 0:16:15There's no getting away from it. It's a wild garden out here.
0:16:15 > 0:16:18Lots of junk you'd need to clear out.
0:16:18 > 0:16:22You've got about 120 foot of space to play with so it's quite exciting.
0:16:22 > 0:16:28I would get rid of this old shed. You've got a garage up the top.
0:16:28 > 0:16:32Once it's been cleared out, maybe lay some patio, a pergola overhead.
0:16:32 > 0:16:36You've got the makings of a really nice family garden.
0:16:36 > 0:16:40'An extension could be an option,
0:16:40 > 0:16:46'although there may be issues being so close to that conservation area.
0:16:46 > 0:16:48'Let's see what a local estate agent says.'
0:16:48 > 0:16:52Plumstead conservation area is a quarter of a mile from here.
0:16:52 > 0:16:55It's an area of listed properties
0:16:55 > 0:17:01where you can't change the exterior without permission from the council.
0:17:01 > 0:17:06These properties are not listed. It's primarily the period houses.
0:17:06 > 0:17:13These are 1930s houses. It doesn't apply to these, but this is a very sought-after location.
0:17:13 > 0:17:15'The sky's the limit, then,
0:17:15 > 0:17:20'but a sensible investor would keep their feet on the ground.'
0:17:20 > 0:17:25In my opinion, there needs to be spent only £10,000 to £15,000.
0:17:25 > 0:17:30The kitchen and bathroom need to be replaced, wiring needs to be done.
0:17:30 > 0:17:33Extending would be viable for the future.
0:17:33 > 0:17:37I don't think you'd get an immediate return.
0:17:37 > 0:17:41It's a good configuration. 1930s houses are well-built.
0:17:41 > 0:17:44A solid property and a very desirable road.
0:17:44 > 0:17:49'Once it's completed, will the value of the property be as desirable?'
0:17:49 > 0:17:51If this property was refurbished,
0:17:51 > 0:17:56I would place it on the market between £225,000 and £230,000.
0:17:56 > 0:18:03The going rate for rental properties would be between £900 and £950 per calendar month.
0:18:04 > 0:18:10This house is ready to move into. All it needs is carpets and sorting out that kitchen.
0:18:10 > 0:18:16You could spend cash on an extension but you might not get your money back.
0:18:16 > 0:18:20Let's see who placed that winning bid at the auction.
0:18:23 > 0:18:28Good looking semi-detached house. Needs small improvement. Good value.
0:18:28 > 0:18:30Bid me at 150. Got to be worth that.
0:18:30 > 0:18:34I should think so, too. 150 at the back.
0:18:34 > 0:18:37152. And four. And six.
0:18:37 > 0:18:42156, sitting down. 158? 160. Knows its value. 160.
0:18:42 > 0:18:46At £160,000. 162, in a fresh place.
0:18:46 > 0:18:50164? It's against you. 165. And eight?
0:18:50 > 0:18:53168 I'm looking for. 168 I have.
0:18:53 > 0:18:55And 70? 170.
0:18:55 > 0:18:57And two? 172. And five?
0:18:57 > 0:19:00175. And eight?
0:19:00 > 0:19:03178? 178. And 80, if you like?
0:19:03 > 0:19:07At £178,000 I've got.
0:19:07 > 0:19:11180 I'm looking for. Are we all done then, at 178?
0:19:11 > 0:19:13If you're sure you're all done.
0:19:13 > 0:19:16It's yours, sir, for 178,000.
0:19:16 > 0:19:21And your card number is 8481.
0:19:23 > 0:19:28'The successful bid of £178,000 was placed by husband and wife
0:19:28 > 0:19:31'David and Stephanie.'
0:19:31 > 0:19:33Guys, congratulations.
0:19:33 > 0:19:39You must be so pleased. Did you view this property prior to the auction?
0:19:39 > 0:19:43No. We didn't get the chance to have a viewing.
0:19:43 > 0:19:47We made a lot of assumptions from the catalogue.
0:19:47 > 0:19:52We read it in detail and had a good look at the legal stuff.
0:19:52 > 0:19:55So we knew that it was OK.
0:19:55 > 0:19:59It was remortgaged two years ago so it should be structurally sound.
0:19:59 > 0:20:02'That wasn't their only stroke of luck.
0:20:02 > 0:20:05'The photo in the catalogue was an old one
0:20:05 > 0:20:10'and there had since been unexpected improvements.'
0:20:10 > 0:20:12Pictures can be deceiving.
0:20:12 > 0:20:17They can, but what we got was better than what's in the catalogue.
0:20:17 > 0:20:22Exactly! And usually it's the other way round! You guys got lucky!
0:20:22 > 0:20:27The picture in the catalogue isn't the front of the house today.
0:20:27 > 0:20:32No. A new front door, double glazing and it's been painted internally.
0:20:32 > 0:20:38How did you feel when you opened the front door and walked inside for the first time?
0:20:38 > 0:20:43It smelled of fresh gloss paint and looked fairly straightforward.
0:20:43 > 0:20:47New kitchen, new bathroom, no problem at all.
0:20:47 > 0:20:51'David was made redundant from his job in communications nine years ago
0:20:51 > 0:20:55'and the couple have made their living renovating properties since.'
0:20:55 > 0:21:01- Did you feel happy that you had bought a good solid house?- Yeah.
0:21:01 > 0:21:04We were really pleased. Everything stacked up.
0:21:04 > 0:21:08There's a nice little profit there if we want to take it.
0:21:08 > 0:21:14'Helping them with everything from legal advice to demolition
0:21:14 > 0:21:16'is their old friend, Janet.'
0:21:16 > 0:21:18She's required for everything.
0:21:18 > 0:21:23- Just to make sure...- Particularly sledgehammering down that wall!
0:21:23 > 0:21:27- Will Janet be involved in knocking walls down?- She's in charge.
0:21:27 > 0:21:32She will be taking this wall down with her sledgehammer.
0:21:32 > 0:21:36'I need to meet this modern-day wonder woman with legal knowledge
0:21:36 > 0:21:41'and, it seems, strength to take walls down with her bare hands.'
0:21:41 > 0:21:46- So, Janet.- Hello.- What is all this about you and a sledgehammer?
0:21:46 > 0:21:52I'm quite used to wielding it. I work in an office five days a week.
0:21:52 > 0:21:56I get so frustrated that I take my frustration out on the wall.
0:21:56 > 0:22:01- But seriously, your friends are really leaning on you.- Yeah.
0:22:01 > 0:22:06- For the whole...- They have done throughout the whole process.
0:22:06 > 0:22:10I helped with the legal pack, giving them ideas,
0:22:10 > 0:22:14giving them pointers for the way to go.
0:22:14 > 0:22:18We've been friends for 30, 40 years. We trust each other.
0:22:18 > 0:22:20We know how we work.
0:22:20 > 0:22:24- Have you ever knocked down a wall with a sledgehammer?- Yes.
0:22:24 > 0:22:26- No. Come on!- Honestly.
0:22:26 > 0:22:31How long is it going to take you to get that wall down?
0:22:31 > 0:22:34The last time, it took me four hours.
0:22:34 > 0:22:41A builder said it would take him two days, and gave us a weekend to do it in. I did it in four hours.
0:22:41 > 0:22:44- Janet! Put it there, lady! - Thank you.
0:22:44 > 0:22:46# I want to be
0:22:48 > 0:22:50# Your sledgehammer... #
0:22:50 > 0:22:55'The demolition's sorted. What else are David and Stephanie planning?'
0:22:55 > 0:22:58Bathroom. Kitchen.
0:22:58 > 0:23:00Conservatory out the back.
0:23:00 > 0:23:04Put double doors between the two existing rooms.
0:23:04 > 0:23:09Re-do all the electrics, new heating system, new plumbing, hot water.
0:23:09 > 0:23:13And just spruce it up a bit.
0:23:13 > 0:23:18- David, how much money do you think you need to spend?- About 20,000.
0:23:18 > 0:23:22- £20,000?- Yes. Kitchens, bathrooms, surprisingly expensive.
0:23:22 > 0:23:26Then there's the other work, the conservatory.
0:23:26 > 0:23:31We think 20,000. It wouldn't be unreasonable to spend over 30,000.
0:23:31 > 0:23:37If we were staying longer, then we would be looking to spend that sort of figure.
0:23:37 > 0:23:42- You really want to have it looking fantastic?- It's got to look good.
0:23:42 > 0:23:46David and Stephanie have got an ideal auction property.
0:23:46 > 0:23:52There's not a lot to do, so I'm surprised at that £20,000 budget.
0:23:52 > 0:23:56And Janet will be in charge of the demolition! Hard hats at the ready!
0:23:56 > 0:24:01Join me later in the programme and find out what happens.
0:24:02 > 0:24:08'Coming up, I'm not seeing straight at this Victorian mid-terrace.'
0:24:08 > 0:24:11The door frame looks a bit wonky.
0:24:11 > 0:24:17'We return to this London semi, where there's been fire damage.'
0:24:17 > 0:24:23I said, "Have I lost my eyebrows?" They said, "No. You've lost your hair."
0:24:24 > 0:24:29'First, how did novice Tony get on with that Cheshire bungalow?'
0:24:29 > 0:24:3214, 15-hour days have been typical.
0:24:37 > 0:24:42'Earlier, we were in the historic town of Nantwich in Cheshire,
0:24:42 > 0:24:47'where Tony bought this bungalow at auction for £141,000.
0:24:47 > 0:24:49'Entrepreneur and dance teacher,
0:24:49 > 0:24:55'Tony decided to have a go at property developing, and is looking to the future.'
0:24:55 > 0:24:59It's basically part of a 20-year plan.
0:24:59 > 0:25:02I'm buying a number of properties.
0:25:03 > 0:25:10'This is his second project and, three months later, it looks like he's been busy.
0:25:10 > 0:25:14'The access has been opened up and a gravel driveway laid.
0:25:14 > 0:25:19'The roof has been replaced and there's double glazing throughout.
0:25:22 > 0:25:27'Those two spacious bedrooms have been replastered and painted
0:25:27 > 0:25:31'and that parquet flooring has come up a treat.'
0:25:35 > 0:25:37My beautiful parquet floor!
0:25:37 > 0:25:43It's been labour of love. It was sanded way to early in the project.
0:25:43 > 0:25:49Trying to keep the dirt off it has been difficult, to say the least.
0:25:49 > 0:25:54I think the result is beautiful. You wouldn't get it in a new house.
0:25:54 > 0:25:56'You certainly wouldn't.
0:25:56 > 0:26:00'Restoring original features can be costly
0:26:00 > 0:26:05'but will add significant value to an older property.
0:26:05 > 0:26:09'In the sitting room, Tony has extended into the back garden
0:26:09 > 0:26:12'to create a huge L-shaped area
0:26:12 > 0:26:16'with new doors out onto the patio.
0:26:16 > 0:26:21'The bathroom has been elongated by moving a wall,
0:26:21 > 0:26:24'and a high-spec suite installed.'
0:26:24 > 0:26:27Ah! The bathroom! I needed help with this.
0:26:27 > 0:26:31So I called my dad. My dad has done an amazing job here.
0:26:31 > 0:26:35He's in his early 70s, not that I should say that.
0:26:35 > 0:26:39He's been on his hands and knees and done a fantastic job.
0:26:39 > 0:26:41'Hasn't he just?
0:26:41 > 0:26:46'Tony's dad, Harry, is a retired company director,
0:26:46 > 0:26:48'but clearly an expert DIY-er, too.
0:26:48 > 0:26:52'Finally, that prehistoric kitchen has been transformed
0:26:52 > 0:26:56'with white units and modern appliances.'
0:26:59 > 0:27:05This is the site of the kitchen. We've gone with contemporary units.
0:27:05 > 0:27:09High-gloss units. It's a fully integrated kitchen.
0:27:09 > 0:27:13With the downlighters to give it that contemporary feel.
0:27:13 > 0:27:18'There's a beautiful blend of the traditional and modern here.
0:27:18 > 0:27:22'Tony had the original internal doors dipped and stripped
0:27:22 > 0:27:27'and finished with new hardware - and don't they look stunning?
0:27:29 > 0:27:34'My slight worry is that Tony spent too much on luxury fittings
0:27:34 > 0:27:37'for what he intended to be a rental house.
0:27:37 > 0:27:41'I wonder if he got a bit carried away.'
0:27:41 > 0:27:45The property was very much designed to be a rental property.
0:27:45 > 0:27:51Within two or three weeks, it was clear that it would make a beautiful home.
0:27:51 > 0:27:56Rather than putting fencing around the property, for instance,
0:27:56 > 0:27:59we've laid 85 metres of beech hedging.
0:27:59 > 0:28:03The kitchen has been increased, the specification.
0:28:03 > 0:28:08Overall, the light fittings and other things have been increased
0:28:08 > 0:28:13so that it appeals to someone who might want to buy the property.
0:28:13 > 0:28:16It's also functional, if I do decide to rent it.
0:28:18 > 0:28:22'He may have fallen into the classic trap
0:28:22 > 0:28:26'of doing up a place to meet his own standards.
0:28:26 > 0:28:31'While beautiful, that may be excessive for the rental market.
0:28:31 > 0:28:35'Tony might have to shell out again if he sells the house later.
0:28:35 > 0:28:40'But he saved a packet on labour by doing much of the work himself.'
0:28:40 > 0:28:43I spent so much time at the property.
0:28:43 > 0:28:4714, 15-hour days have been typical.
0:28:47 > 0:28:49At least six days a week.
0:28:49 > 0:28:53Sometimes, I've gone for two weeks working continuously through.
0:29:00 > 0:29:04It's not for the faint-hearted, buying property.
0:29:04 > 0:29:09I don't think people appreciate how much it takes over your life.
0:29:09 > 0:29:12# You've got to work hard You've got to work hard... #
0:29:14 > 0:29:20'But the proof is in the pudding and this is a feast for the eyes.
0:29:20 > 0:29:25'Tony only went over his schedule of two months by a few weeks,
0:29:25 > 0:29:29'but I wonder how he did with that all-important budget.'
0:29:30 > 0:29:33My original budget was 41,000.
0:29:33 > 0:29:38It was a fairly loose budget but I'd anticipated about that mark.
0:29:38 > 0:29:42The budget HAS been increased and deliberately so.
0:29:42 > 0:29:46There haven't been any things that have happened
0:29:46 > 0:29:49that meant I had to increase the budget unnecessarily.
0:29:49 > 0:29:54The budget's increased because we increased the specification.
0:29:54 > 0:29:58I would estimate now that the budget is going to be about £47,000.
0:29:58 > 0:30:02'That's more than a 10% increase in his original budget.
0:30:02 > 0:30:07'The total expense, including the purchase price, is £188,000
0:30:07 > 0:30:09'plus the usual fees.
0:30:09 > 0:30:13'Let's hope it makes good financial sense in the long run.
0:30:13 > 0:30:18'We invited two local experts to tell us what they thought.'
0:30:18 > 0:30:21First impressions, returning to the property,
0:30:21 > 0:30:25he's done a fantastic job with the extension
0:30:25 > 0:30:27and quality of the fitments.
0:30:27 > 0:30:31It's well-modernised. Good quality kitchen and bathroom.
0:30:31 > 0:30:35I love those wood block floors. He's done a really good job.
0:30:35 > 0:30:40For rental, I would put it on in the region of £775 per calendar month.
0:30:40 > 0:30:48If I was to offer this property to rent, I would be asking between £750 and £800 per calendar month.
0:30:48 > 0:30:51The rental is about spot-on, to be fair.
0:30:51 > 0:30:56We're going to chance our arm and try 825 but, realistically,
0:30:56 > 0:30:59I think 800 would be a good rate for the property.
0:30:59 > 0:31:07If I was to market it for resale today, I would look to market it in the region of £275,000 to £285,000.
0:31:07 > 0:31:11I would market the property at £225,000.
0:31:11 > 0:31:17My target had been 260, but since I've been working on the property and increased the specification
0:31:17 > 0:31:20I would estimate to get 280 to 290.
0:31:20 > 0:31:24'If he gets around the 290-grand mark -
0:31:24 > 0:31:30'and Tony's had two valuations done independently that suggest this -
0:31:30 > 0:31:34'that could make him a potential profit of over £100,000.
0:31:34 > 0:31:36'Not bad for a first go.
0:31:36 > 0:31:39'Will he do it again?'
0:31:39 > 0:31:42Absolutely want to do it again. I start on Monday.
0:31:42 > 0:31:44This is my full-time job.
0:31:44 > 0:31:48I'm looking forward to many projects in the future.
0:31:48 > 0:31:52'Since filming, Tony decided to move into the bungalow
0:31:52 > 0:31:55'and is doing his old house up to rent out.'
0:32:02 > 0:32:05'This is Derby in the East Midlands.
0:32:05 > 0:32:08'A hub of the Industrial Revolution,
0:32:08 > 0:32:14'the city enjoyed tremendous prosperity during Victorian times.
0:32:14 > 0:32:20'One lasting legacy from that boom period is in Derby's housing stock,
0:32:20 > 0:32:24'namely its streets of Victorian terraces.'
0:32:26 > 0:32:29This is a fairly traditional street of terraced houses.
0:32:29 > 0:32:35It was - before they did a fantastic job of making it family friendly.
0:32:35 > 0:32:38We've got traffic calming, a park over there.
0:32:38 > 0:32:42A different way to park the cars. A great start.
0:32:42 > 0:32:46The property is this one. It had a guide price of £58,000.
0:32:46 > 0:32:50A three-bedroom mid-terrace. Let's take a look.
0:32:50 > 0:32:54Probably not too many surprises. Well, there's a pleasant one!
0:32:54 > 0:32:59It doesn't smell damp or look to be in too bad a condition.
0:32:59 > 0:33:04Straight in off the street into your living room. Very traditional.
0:33:04 > 0:33:06It's obviously dated.
0:33:06 > 0:33:08Hasn't been wallpapered for a while.
0:33:08 > 0:33:11You'd want to change this gas fire,
0:33:11 > 0:33:14maybe open that into an open fire.
0:33:15 > 0:33:18You know what? It's fine.
0:33:21 > 0:33:26These glass doors are a hazard. That's probably not safety glass.
0:33:26 > 0:33:28If you've got kids, they should go.
0:33:28 > 0:33:33A rear sitting room. Fireplace could do with updating.
0:33:33 > 0:33:37Then a very traditional layout, through to the kitchen.
0:33:37 > 0:33:39It's long and thin.
0:33:39 > 0:33:44Again, fairly traditional, bathroom and toilet at the rear.
0:33:44 > 0:33:51Your big debate is do you go to the expense of moving that to another part of the house?
0:33:51 > 0:33:57Is it going to make much difference to what it's worth or what you get in rent? I don't think so.
0:33:57 > 0:33:59So leave it there.
0:34:00 > 0:34:04'I've noticed that there's no other form of heating
0:34:04 > 0:34:06'than those old gas fires.
0:34:06 > 0:34:10'Installing central heating would be top of my agenda.
0:34:10 > 0:34:14'Apart from that, it's just cosmetics.
0:34:16 > 0:34:19'A big positive is the back garden.
0:34:19 > 0:34:24'It's small but attractive. It's obviously been well cared for.'
0:34:27 > 0:34:30Upstairs, traditional layout continues.
0:34:30 > 0:34:33One bedroom one side. One bedroom on the other.
0:34:33 > 0:34:37I have to say, the door frame looks a bit wonky on both sides.
0:34:37 > 0:34:42My guess is there has been some historic settlement.
0:34:42 > 0:34:44You might want that checked out.
0:34:44 > 0:34:47The guess is that it is something in the past.
0:34:47 > 0:34:52What concerns me more is how the heck you call that a third bedroom!
0:34:52 > 0:34:54It's microscopic!
0:34:54 > 0:34:58Would you move the bathroom into this and create a corridor?
0:34:58 > 0:35:02I don't think you would. It IS a bedroom.
0:35:02 > 0:35:06It's not ideal but you wouldn't necessarily want to lose it.
0:35:06 > 0:35:10I'd keep it as something like a nursery.
0:35:10 > 0:35:15'What can the auctioneer who sold the property tell us about it?'
0:35:15 > 0:35:19We're in a suburb of Derby called Normanton,
0:35:19 > 0:35:23which is largely terraced housing like this with some later houses.
0:35:23 > 0:35:28Derby City Council did an environmental improvement scheme.
0:35:28 > 0:35:34They've tried to cut out a lot of on-road parking,
0:35:34 > 0:35:40make the environment better, put in little open spaces and called it the Home Zone.
0:35:43 > 0:35:47'Derby Council didn't only improve the surroundings.'
0:35:47 > 0:35:52It's a property which has been reasonably well maintained.
0:35:52 > 0:35:56Before the council did the Home Zone environmental scheme,
0:35:56 > 0:35:59they did a group repair scheme.
0:35:59 > 0:36:01All these houses got re-roofed,
0:36:01 > 0:36:06new double-glazed windows, new downpipes and gutters.
0:36:06 > 0:36:09A lot of that has been achieved.
0:36:09 > 0:36:13'It sounds promising, but what improvements could be made?'
0:36:13 > 0:36:15To keep it as a three-bedroom house,
0:36:15 > 0:36:18you've got to passage out the back bedroom,
0:36:18 > 0:36:22so you've got access to your third bedroom,
0:36:22 > 0:36:24even though it's a small single.
0:36:24 > 0:36:27'Would this make a solid rental investment?'
0:36:27 > 0:36:30There's a good rental demand here.
0:36:30 > 0:36:36These properties, because of what they are, will never fetch huge rental values.
0:36:36 > 0:36:40This would rent out at about £375 to £400 a calendar month.
0:36:40 > 0:36:45'What about a sale value, once renovated?'
0:36:45 > 0:36:52Any terraced house in this locality, two bedrooms, three bedrooms, have a ceiling value of £85,000.
0:36:52 > 0:36:58With money spent on it, to make a nice modern job out of it,
0:36:58 > 0:37:02I would guess its value is probably about 80,000.
0:37:03 > 0:37:08So, a solid little property that would rent out any day of the week,
0:37:08 > 0:37:12and, with the work they've done, a nice place to live.
0:37:12 > 0:37:15Who went for it when it went under the hammer?
0:37:18 > 0:37:21Who's got 58 for a three-bedroom terrace?
0:37:21 > 0:37:2355? Don't mind where we start.
0:37:23 > 0:37:2855? 54? £54,000. Thank you. 55 is bid here.
0:37:28 > 0:37:3260,000. 500.
0:37:32 > 0:37:3561 is bid. 500.
0:37:35 > 0:37:3862. 62,500.
0:37:38 > 0:37:4063? 63,000.
0:37:40 > 0:37:4464. 64,000. I've taken a bid at the back of the room.
0:37:44 > 0:37:4764,500. 65,000.
0:37:47 > 0:37:5065,500. 66.
0:37:50 > 0:37:53500. 67?
0:37:53 > 0:37:56At 66,500.
0:37:56 > 0:37:59Going for the first time. Second time.
0:37:59 > 0:38:01Third time... Yours, sir.
0:38:01 > 0:38:0366,500. Thank you..
0:38:03 > 0:38:07'The final bid of £66,500
0:38:07 > 0:38:10'came from Bobby and his business partner, Dean.
0:38:10 > 0:38:16'Regular viewers may recognise restaurateur and property developer Bobby.'
0:38:16 > 0:38:21# Welcome home... #
0:38:21 > 0:38:26'Last time we met him, he'd just finished restoring a Grade II listed
0:38:26 > 0:38:29'Elizabethan manor house he bought at auction.
0:38:29 > 0:38:34'Why was he bidding for a two-up, two-down terrace in Derby?
0:38:34 > 0:38:38'I met him back at his new purchase to find out.'
0:38:38 > 0:38:41# You've been gone too long... #
0:38:43 > 0:38:47- Bobby, good to see you again.- Yes.
0:38:47 > 0:38:50- How have you been? - Fine. Good, thank you.
0:38:50 > 0:38:56- How's Wakelin Hall? - Doing well. Still standing. - Beautiful property.- Yes, it is.
0:38:56 > 0:39:00We've come down a peg. It's not quite Elizabethan.
0:39:00 > 0:39:03No. No. Hm.
0:39:03 > 0:39:06- But it's good.- It is. - It's a good buy.
0:39:06 > 0:39:09Tell me how come you've ended up buying this.
0:39:09 > 0:39:14- The property's purchased by Dean. - Your business partner?
0:39:14 > 0:39:18He's my friend and he's purchased the property...
0:39:18 > 0:39:22I've sort of gone along to the auction with him...
0:39:22 > 0:39:26I'm his inspiration and guidance in this project.
0:39:26 > 0:39:30I'm also his speaker. He's lost his voice. He's croaking away.
0:39:30 > 0:39:34What was it that made you think it was a good one for him?
0:39:34 > 0:39:39The property hasn't got a lot that needs doing to it, just the decor.
0:39:39 > 0:39:43It hasn't got central heating, so that'll need to be addressed.
0:39:43 > 0:39:46That's it. Nothing too taxing.
0:39:46 > 0:39:51'This little terrace isn't really going to be Bobby's project at all.
0:39:51 > 0:39:55'His friend Dean wanted to learn about property developing
0:39:55 > 0:39:59'and what better way to do it than start with something small?
0:39:59 > 0:40:04'All it needs is a central heating system, then it's just the decor.
0:40:04 > 0:40:06'Dean should manage that.
0:40:06 > 0:40:11'My instincts are that Bobby may find it hard to take a back seat.'
0:40:11 > 0:40:17How much budget has he put aside to sort out what needs to be sorted?
0:40:17 > 0:40:21Hm. I'd say, probably about... 4,000 to 5,000.
0:40:21 > 0:40:23Top end, 4,000 to 5,000.
0:40:23 > 0:40:28- Are you going to be involved in any of the hands-on work?- No.
0:40:28 > 0:40:30Is Dean?
0:40:30 > 0:40:33Probably not. MARTIN LAUGHS
0:40:33 > 0:40:35Hands-off property developing?
0:40:35 > 0:40:40It's getting it done and getting some more properties.
0:40:40 > 0:40:45# Relax, take it easy
0:40:45 > 0:40:49# For there is nothing that we can do... #
0:40:49 > 0:40:52What about timescales? How quickly to get it sorted?
0:40:52 > 0:40:57- Three to four weeks.- Right. So a team of people coming in?
0:40:57 > 0:40:59Get it ready. Get it rented out.
0:40:59 > 0:41:02How are you going to manage to not interfere?
0:41:02 > 0:41:07I think I'll get asked to do certain parts of the job.
0:41:07 > 0:41:11So...I won't NEED to interfere!
0:41:11 > 0:41:14- Your help will be welcome throughout?- Yes.
0:41:14 > 0:41:19If you see him making mistakes, are you going to say, "Don't do that"?
0:41:19 > 0:41:21Anything drastic, yes.
0:41:21 > 0:41:28I'm a bit of a Scrooge. You may not think, in terms of the last project, how much money was spent.
0:41:28 > 0:41:32But I don't think a lot should be spent on this particular project.
0:41:32 > 0:41:37So if he has any ideas of spending a certain amount on decorating,
0:41:37 > 0:41:40and it's a lot, then I will "step in".
0:41:40 > 0:41:45- Well, he's very lucky to have you as his mentor.- Yes.
0:41:45 > 0:41:47I hope so.
0:41:47 > 0:41:51Congratulations. Look forward to seeing you again perhaps.
0:41:51 > 0:41:58- Yes.- On a project somewhere between an Elizabethan manor house and a terrace.- Yeah. Hopefully.
0:41:58 > 0:42:03Bobby picked a good first project for his business partner Dean.
0:42:03 > 0:42:07Nothing structural to sort out, just a bit of cosmetic work.
0:42:07 > 0:42:14How will they get on? Will Dean like being a property developer? Find out later in the show.
0:42:17 > 0:42:22Time can be a healer. It can also be the enemy when you're up against a deadline.
0:42:22 > 0:42:26- What has happened to those properties?- Let's find out.
0:42:31 > 0:42:35'We're back at this 1930s semi in Plumstead, southeast London.
0:42:35 > 0:42:40'It was bought at auction by David and Stephanie for £178,000.
0:42:40 > 0:42:45'The couple planned to renovate the house to sell on.
0:42:45 > 0:42:48'David felt pretty confident.'
0:42:48 > 0:42:52We were really pleased.
0:42:52 > 0:42:58Everything stacked up and there's a nice little profit if we want to take it.
0:42:59 > 0:43:01'So, seven months later,
0:43:01 > 0:43:03'how DID things stack up?
0:43:07 > 0:43:11'A fresh coat of paint and a tidy-up of that hedge
0:43:11 > 0:43:14'has made the house much more attractive.
0:43:14 > 0:43:19'Inside, a lick of paint, new carpets and a fireplace
0:43:19 > 0:43:21'bring the living space up to date.
0:43:21 > 0:43:25'They decided against the neutral colours
0:43:25 > 0:43:28'usually chosen when doing a property up for the market,
0:43:28 > 0:43:34'and went for a bold contemporary feature wall and lighting instead.
0:43:34 > 0:43:38'The wisest move was taking down the wall
0:43:38 > 0:43:41'between the galley kitchen and the dining area.
0:43:41 > 0:43:45'This created a large open kitchen living area
0:43:45 > 0:43:50'which flows all the way from the front of the house to the back.
0:43:50 > 0:43:53'A new kitchen maximises the space.
0:43:53 > 0:43:59'There are new units, surfaces and appliances.'
0:43:59 > 0:44:04This was the original kitchen, from that wall to approximately here.
0:44:04 > 0:44:07There was a doorway from the hallway.
0:44:07 > 0:44:13The door to the garden there meant that the kitchen was five foot wide.
0:44:13 > 0:44:18It was totally impractical. There was no room to do anything.
0:44:18 > 0:44:22The wall here came down and then we came through
0:44:22 > 0:44:26and that made this great big space here.
0:44:26 > 0:44:29We've moved the main kitchen here,
0:44:29 > 0:44:34which makes this a big through-space.
0:44:34 > 0:44:39'David and Stephanie's friend Janet did most of the heavy work.'
0:44:42 > 0:44:47One of the first tasks she did was to sledgehammer the wall down.
0:44:47 > 0:44:51David was the other side of the wall to where I was.
0:44:51 > 0:44:54He told me to hit it after he'd hit it.
0:44:54 > 0:44:59He hit it the first time and nothing happened.
0:44:59 > 0:45:03I hit it and six bricks fell out.
0:45:03 > 0:45:09His comment was, "I'll leave it to you." It took me two hours.
0:45:09 > 0:45:14# If I had a hammer I'd hammer in the morning
0:45:14 > 0:45:18# I'd hammer in the evening All over this land... #
0:45:18 > 0:45:24'Upstairs, things haven't moved along quite so smoothly.
0:45:24 > 0:45:29'The three bedrooms are being used as storage, while work continues downstairs.
0:45:33 > 0:45:36'Outside, it's a different story.
0:45:36 > 0:45:40'That big overgrown garden has been transformed.
0:45:42 > 0:45:48'The south-facing aspect and large size makes it a fabulous spot to relax in .
0:45:48 > 0:45:52'To get it to this state wasn't without its perils.'
0:45:52 > 0:45:56This area here was almost waist-high in weeds.
0:45:56 > 0:46:01As you go down the garden, there was a very large shrub
0:46:01 > 0:46:05which almost blanked the back end of the garden.
0:46:05 > 0:46:09Beyond there, there was a huge shed, full width of the garden,
0:46:09 > 0:46:12semi-derelict and a complete mess.
0:46:13 > 0:46:19It was an eyesore. David took one look and said, "Leave that to me."
0:46:19 > 0:46:21Turned away and I said, "No."
0:46:21 > 0:46:24And pulled it down in front of him!
0:46:24 > 0:46:28Set fire to the doors that the shed comprised of.
0:46:28 > 0:46:31Had a bit of an accident with that.
0:46:31 > 0:46:36Put one of the doors on the fire. Stood a bit too close.
0:46:36 > 0:46:42Turned round and said to Stephanie and David, who were both aghast,
0:46:42 > 0:46:47"Have I lost my eyebrows?" They said, "No. You've lost your hair."
0:46:47 > 0:46:50# O-o-oh, I'm on fire... #
0:46:50 > 0:46:54'I guess Janet really suffers for her art,
0:46:54 > 0:46:59'The burning question is, did David and Stephanie stay on schedule?'
0:47:01 > 0:47:06We were hoping to be done in the region of four months.
0:47:06 > 0:47:10We're now running at, um...six months.
0:47:10 > 0:47:13Partly because we had a very hard winter.
0:47:13 > 0:47:16That caused a lot of delays.
0:47:16 > 0:47:18'What about their budget?'
0:47:18 > 0:47:21The original budget was 20,000.
0:47:21 > 0:47:24We are running at...
0:47:24 > 0:47:2716 and a half at the moment.
0:47:27 > 0:47:31We expect to spend another two to finish off.
0:47:31 > 0:47:34We're going to come in a little below,
0:47:34 > 0:47:38but we haven't found as many problems as we thought we might.
0:47:38 > 0:47:42'Added to the projected £18,500 budget,
0:47:42 > 0:47:49'the £178,000 purchase price brings their total spend to nearly 200,000.
0:47:49 > 0:47:51'Have they spent their money wisely?
0:47:53 > 0:47:56'We invited two local estate agents
0:47:56 > 0:47:59'to give us their opinions.'
0:48:00 > 0:48:06I'm impressed with the kitchen, particularly how they've arched open
0:48:06 > 0:48:11the wall between the kitchen and the lounge, to give it a lot of light.
0:48:11 > 0:48:17Much bigger. Much more space. It makes it much more saleable.
0:48:19 > 0:48:25'How much could the couple expect if they rented the house out?'
0:48:25 > 0:48:27In the current conditions,
0:48:27 > 0:48:32this property would rent for about £975 per calendar month.
0:48:32 > 0:48:36You'd get a lot of interest and I think it'd get rented quickly.
0:48:36 > 0:48:41You could rent this property for £1,000 per calendar month.
0:48:41 > 0:48:43About what I expected.
0:48:43 > 0:48:49Yeah. The rental's a bit higher than I thought but, you know, hm...
0:48:49 > 0:48:52'How much might it make if they sold it?
0:48:52 > 0:48:59'Remember, their total spend was about £196,500.'
0:48:59 > 0:49:06Reflecting the current market, the property would go on for £225,000 to £230,000.
0:49:06 > 0:49:12You'd get a lot of interest from cash buyers, and I think it's a price we'd sell the property for.
0:49:12 > 0:49:19With the work completed, I would value this property between £220,000 and £225,000.
0:49:19 > 0:49:21Yes. What we were expecting.
0:49:21 > 0:49:24Yeah. It's in the range. Yeah.
0:49:27 > 0:49:32'That sounds like a potential profit of between 23,000 and 33,000,
0:49:32 > 0:49:34'minus tax and fees.
0:49:34 > 0:49:40'They'd need to finish upstairs to the same standard as downstairs.
0:49:40 > 0:49:44'Between David and Stephanie, and the invaluable Janet,
0:49:44 > 0:49:47'they look to have things under control.
0:49:50 > 0:49:53'The secret of their great working relationship?'
0:49:53 > 0:49:57- Oh, well. I do what I'm told. - THEY LAUGH
0:49:57 > 0:50:02- You can't say that!- I just have! - Not with Janet, anyway.
0:50:10 > 0:50:15'We're back at this three-bed mid-terrace in Derby.
0:50:15 > 0:50:22'It had been snapped up for £66,500 by Dean, who bought it as a buy-to-let.
0:50:22 > 0:50:26'It was his first property investment,
0:50:26 > 0:50:30'so Dean decided to have it mentored by business partner Bobby,
0:50:30 > 0:50:36'who has previous renovation experience and a tough business head.'
0:50:36 > 0:50:41I don't think a lot of money should be spent on this particular project.
0:50:41 > 0:50:48If he has ideas of spending a certain amount on decorating, and it's a lot, then I will "step in".
0:50:52 > 0:50:57'Six months later, we joined Bobby to see how things have been going.
0:50:57 > 0:51:00'Someone's moved in, by the looks of it.
0:51:02 > 0:51:09'But apart from some new flooring, the rooms haven't changed much.'
0:51:09 > 0:51:15We've done a small amount of work, the reason being tenants wanted to move in very quickly.
0:51:15 > 0:51:17They didn't have anywhere to live.
0:51:17 > 0:51:21They were living at a relative's house.
0:51:21 > 0:51:25There was no need to spend any extra cash.
0:51:25 > 0:51:29'It's great that they got tenants in so fast.
0:51:29 > 0:51:33'This house was bought as a buy-to-let, after all.
0:51:36 > 0:51:44'Despite appearances, Bobby did manage to get some jobs done in the few weeks before they moved in.'
0:51:44 > 0:51:46OK, so we've plastered the walls.
0:51:46 > 0:51:50The painting's not finished, as you can see.
0:51:50 > 0:51:55New central heating system and new flooring. They're the three items.
0:51:55 > 0:51:58'What about that tiny third bedroom?
0:51:58 > 0:52:02'Are the tenants happy accessing it through the second bedroom?'
0:52:02 > 0:52:05They were happy with the arrangement
0:52:05 > 0:52:08for the bedrooms to be through one to the next.
0:52:08 > 0:52:11So we left it. For now.
0:52:11 > 0:52:17'With a minimum of fuss, Bobby has had the house rented out for six months,
0:52:17 > 0:52:20'which means a steady income for Dean.
0:52:20 > 0:52:25'Recently, the first tenants moved out, allowing more work to be done.'
0:52:26 > 0:52:29We've got a new set of tenants in.
0:52:29 > 0:52:36And we can now complete some of the work whilst these tenants are in,
0:52:36 > 0:52:39because they're OK for us to carry on.
0:52:39 > 0:52:43Somebody will come back and finish off bits of trim,
0:52:43 > 0:52:48painting around the door frames, just remedial work.
0:52:48 > 0:52:55If it means getting the rent in quickly rather than losing rent for another week or two,
0:52:55 > 0:52:57it's better that way.
0:52:57 > 0:53:00'I think Bobby's got the right idea.
0:53:00 > 0:53:04'His focus is on having the property work for its keep.
0:53:04 > 0:53:08'That means ensuring the house is occupied by tenants.'
0:53:08 > 0:53:11My personal belief is,
0:53:11 > 0:53:17if you're keeping this property a long time, as long as the fabric of the property is sound,
0:53:17 > 0:53:20I don't think you need to spend much more.
0:53:20 > 0:53:24If the tenants are happy, leave it at that.
0:53:24 > 0:53:27If you're spending extra, you've got to justify it.
0:53:27 > 0:53:32If you're going to market it and sell it, spend more.
0:53:32 > 0:53:37If you're keeping it long term, you could spend thousands later.
0:53:37 > 0:53:45'With such a frugal approach, did he allow Dean to go over his £4,000 to £5,000 budget?'
0:53:45 > 0:53:49We spent 4,000 in total. The majority on central heating.
0:53:49 > 0:53:56And around £1,000 for the flooring, painting these walls and replastering these two rooms.
0:53:56 > 0:54:01A few hundred pounds need to be spent finishing off, but that's all.
0:54:03 > 0:54:10'Adding the renovation budget of £4,000 to the £66,500 paid for the house,
0:54:10 > 0:54:14'a total of £70,500 has been spent.
0:54:14 > 0:54:18'It seems to have paid off, as it's an in-demand rental property
0:54:18 > 0:54:22'that's working well for Bobby's friend Dean.
0:54:22 > 0:54:27'We invited two property experts along to see what they thought
0:54:27 > 0:54:29'of Bobby and Dean's approach.'
0:54:29 > 0:54:34I have to say, not a lot has changed, has it, really?
0:54:34 > 0:54:37Laminate flooring, a central heating system
0:54:37 > 0:54:41and a quick wallop of paint.
0:54:41 > 0:54:46I think, as a future improvement, you would passage out the bedroom.
0:54:46 > 0:54:51It's a logical thing to do. It doesn't work well as it is.
0:54:51 > 0:54:54It's a thing you'd do if you took it further.
0:54:54 > 0:55:00If the owner's renting it out for a good return, and done minimal work,
0:55:00 > 0:55:02great, leave it as it is.
0:55:05 > 0:55:11'With a basic refurbishment, did they settle for a lower monthly rent?'
0:55:11 > 0:55:16This sort of property in this location is easy to rent out.
0:55:16 > 0:55:19In rental value, it's about £400 a calendar month.
0:55:19 > 0:55:24A bit more, a little bit less, but it's about that sort of ballpark.
0:55:24 > 0:55:31Judging on the properties around here, you could get £400 per calendar month.
0:55:31 > 0:55:33We're getting 410.
0:55:33 > 0:55:36It's £10 over, not under, so that's fine.
0:55:38 > 0:55:43'It looks like Bobby's businesslike approach is paying dividends.
0:55:43 > 0:55:47'How much could this house fetch, if put up for sale?'
0:55:47 > 0:55:52If you offered the property as it is, there's a market for it, yes.
0:55:52 > 0:55:57You could take it a bit further, improve the kitchen and bathroom.
0:55:57 > 0:56:01You will add value, but you can't take it too much further
0:56:01 > 0:56:08because there's a cap on the level of values of standard terrace houses in this location.
0:56:08 > 0:56:10If this was on today's market,
0:56:10 > 0:56:16you'd have an asking price of around £75,000, and expect to get fairly close to that.
0:56:16 > 0:56:22I would put this property on the market at £69,950 and hope to get an offer fairly close.
0:56:22 > 0:56:28Won't be tempted to sell, but I think, with the market the way it is, it's OK.
0:56:28 > 0:56:33I think the 65 to 70 is slightly low for private treaty.
0:56:33 > 0:56:37For auction, OK, it'll be somewhere close to that.
0:56:37 > 0:56:4075 is still a realistic price.
0:56:40 > 0:56:44'No matter. This place is a rent machine.
0:56:44 > 0:56:48'Bobby and Dean approached the venture on business principles
0:56:48 > 0:56:51'and are already reaping the rewards.'
0:56:54 > 0:56:59We'll be back with more action from auctions around the country.
0:56:59 > 0:57:03- Make sure you're watching Homes Under The Hammer.- Goodbye.
0:57:24 > 0:57:27Subtitles by Red Bee Media Ltd