0:00:02 > 0:00:05- Welcome to the show.- Buying property and doing it up is a dream for some,
0:00:05 > 0:00:08but for others it's a wonderful reality.
0:00:08 > 0:00:13So are you a doer or a dreamer when it comes to Homes Under The Hammer?
0:00:38 > 0:00:41Buying a property at auction can be very exciting,
0:00:41 > 0:00:43but it can also be very stressful.
0:00:43 > 0:00:46In a split second, a property could be yours.
0:00:46 > 0:00:49So if you are planning on buying a property at auction,
0:00:49 > 0:00:51do make sure you're prepared.
0:00:51 > 0:00:54So what got our buyers interested on today's show?
0:00:56 > 0:00:58I'm at this three-bedroom semi in Cornwall,
0:00:58 > 0:01:02where everything appears fine from the outside,
0:01:02 > 0:01:05but what on Earth is this?
0:01:05 > 0:01:10This one-bedroom flat in London could do with some TLC.
0:01:10 > 0:01:12It does feel quite small in here,
0:01:12 > 0:01:15I've got say, it's not oozing with character.
0:01:15 > 0:01:18And I'm a bit confused by the interior decoration
0:01:18 > 0:01:20at this house in Gwent.
0:01:20 > 0:01:22There's units and things that are quite pleasant,
0:01:22 > 0:01:26but they haven't bothered with things like tiles, or actually decoration.
0:01:27 > 0:01:29All these properties have been sold at auction.
0:01:29 > 0:01:31We find out who bought them, and for how much,
0:01:31 > 0:01:34when they went under the hammer.
0:01:39 > 0:01:44I'm in the harbour village of Par on the beautiful Cornish coast.
0:01:44 > 0:01:48There's plenty on offer here for tourists and home-buyers alike.
0:01:50 > 0:01:52I'm here to see a property that's called Shangri-La,
0:01:52 > 0:01:56which literally means an imaginary paradise here on Earth.
0:01:56 > 0:01:58Let's hope this three-bedroom semi,
0:01:58 > 0:02:02with a guide price of £95,000 lives up to expectations.
0:02:02 > 0:02:07# Now that you've found your paradise
0:02:07 > 0:02:13# This is your kingdom to command
0:02:13 > 0:02:17# You can go outside and polish your car
0:02:17 > 0:02:22# Or sit by the fire in your Shangri-La. #
0:02:26 > 0:02:29The first positive thing to say, nice little porch there
0:02:29 > 0:02:31to keep the cold out, into a little entrance area.
0:02:31 > 0:02:34Nice size space, actually, somewhere to hang your coat.
0:02:34 > 0:02:39This age house generally had these kind of open areas, which is good to see.
0:02:39 > 0:02:42The kitchen there, and then,
0:02:42 > 0:02:46through to your knocked through lounge sort of dining room area.
0:02:46 > 0:02:48I like this, with these sliding doors.
0:02:48 > 0:02:53It's a bit dated. You'd probably want to tidy that up a bit. But it's a good size space. Big windows.
0:02:53 > 0:02:56Gas fire there, and through to the rear here,
0:02:56 > 0:03:00where you've got this big dining room area, looking out to the back garden.
0:03:00 > 0:03:04Very nice. But what on Earth is this?
0:03:04 > 0:03:08That, to my mind, should be a door. It's actually just a pane of glass.
0:03:08 > 0:03:12Practically, that's rubbish, because you want to get out into the garden,
0:03:12 > 0:03:16but actually, from a safety point of view, I think that could be pretty dangerous.
0:03:16 > 0:03:19People would bang into it, dogs, whatever, thinking it was going to be a door,
0:03:19 > 0:03:22so that is something I'd look to replace. Bit of a shame.
0:03:22 > 0:03:25Probably done because that's going to be a lot cheaper than a door,
0:03:25 > 0:03:28but a bit of a false economy as far as I'm concerned.
0:03:28 > 0:03:32It wouldn't cost too much to replace that, with the door opening out into the garden
0:03:32 > 0:03:34so you could stroll out there on a summer's eve.
0:03:34 > 0:03:36Ah, perfect!
0:03:40 > 0:03:42But there is access from the kitchen,
0:03:42 > 0:03:47which is functional, but desperately needs modernising.
0:03:47 > 0:03:52Upstairs, three good-sized bedrooms, actually. Fantastic wallpaper(!)
0:03:52 > 0:03:55I think there's a little bit of re-decoration required.
0:03:55 > 0:03:57But it's a good-sized space.
0:03:57 > 0:03:59Primarily a fantastic family home.
0:03:59 > 0:04:02But THAT looks like great fun.
0:04:02 > 0:04:04Now, don't get your hopes up.
0:04:04 > 0:04:07It doesn't take too much to get me excited.
0:04:07 > 0:04:12I reckon this bathroom was probably the original one that was put in
0:04:12 > 0:04:14when the house was built in the 1960s.
0:04:14 > 0:04:18Your first inclination is probably to rip it out and put a white one in,
0:04:18 > 0:04:20but don't be too hasty.
0:04:20 > 0:04:23You know what? I reckon with the right fittings, the right tiles,
0:04:23 > 0:04:27this could actually look really nice.
0:04:27 > 0:04:30No, I'm not being silly, honestly.
0:04:30 > 0:04:36Look at that. You don't see taps like that any more. Fantastic.
0:04:36 > 0:04:39I love the period features in the bathroom, but elsewhere in the house,
0:04:39 > 0:04:43there are some things I'd really like to consign to history.
0:04:43 > 0:04:45The decor, for a start.
0:04:45 > 0:04:49# And kiss your past goodbye
0:04:50 > 0:04:56# Kiss your past goodbye, aah
0:04:56 > 0:05:02# Kiss your past goodbye, yeah... #
0:05:02 > 0:05:07Much like everything else in the house, the heating is old and dated,
0:05:07 > 0:05:12a mix of electric and gas, which is uneconomical and not very efficient.
0:05:13 > 0:05:17But all in all, for the £90,000 guide price, I reckon this was a great little buy.
0:05:17 > 0:05:20What does a local expert make of it?
0:05:20 > 0:05:23I asked the auctioneer who sold it to give me his opinion.
0:05:25 > 0:05:30It's three bedrooms, long through reception room and kitchen,
0:05:30 > 0:05:34garage on the side. It just ticks a lot of boxes.
0:05:34 > 0:05:38The house is a classic example of the near-perfect ratio
0:05:38 > 0:05:41between internal accommodation and outside space.
0:05:41 > 0:05:43Good front garden, even better back garden,
0:05:43 > 0:05:47garage, and the ability to create off-street parking as well.
0:05:47 > 0:05:48It's nearly perfect.
0:05:48 > 0:05:52The house is essentially a good, solid square box.
0:05:52 > 0:05:57But it does need pretty well everything done cosmetically.
0:05:57 > 0:06:02It's basically decoration and superficial fittings from top to toe.
0:06:02 > 0:06:06How much might it cost to bring this house back to life?
0:06:06 > 0:06:11Paint is probably going to be your biggest expenditure in the house.
0:06:11 > 0:06:16But overall, you're looking at close on £10,000
0:06:16 > 0:06:19if you're fairly handy yourself as the buyer.
0:06:19 > 0:06:22Otherwise, you're looking perhaps towards £15,000
0:06:22 > 0:06:24if you're employing all the trades.
0:06:24 > 0:06:30So, once that work was done, what could it sell on for?
0:06:30 > 0:06:33If the house is brought up to nice scratch,
0:06:33 > 0:06:38it would fetch something in the region of £150,000.
0:06:38 > 0:06:42What if the new owners were to rent it out?
0:06:42 > 0:06:47When the house has been refurbished, a rental market would probably
0:06:47 > 0:06:51not quite pay £600 per calendar month, but getting up towards it.
0:06:51 > 0:06:56So, not much to do to turn this into a good little rental property or a family home.
0:06:56 > 0:06:59Let's see who fancied their own bit of Cornish paradise
0:06:59 > 0:07:01when it went under the hammer.
0:07:01 > 0:07:05We are to Shangri-La.
0:07:05 > 0:07:06It's 100. Thank you, sir.
0:07:06 > 0:07:10100, we're away. 100, simple as that. Madame says two.
0:07:10 > 0:07:11Where it began says two and a half?
0:07:11 > 0:07:13102 and a half is sat where it began.
0:07:13 > 0:07:18103. Madam, 103, and a half. 104.
0:07:18 > 0:07:22And a half. 105 and a half.
0:07:22 > 0:07:25106, and six and a half.
0:07:25 > 0:07:30Seven. New face wants seven and a half. Seven and a half.
0:07:30 > 0:07:33One eight. One eight and a half.
0:07:33 > 0:07:35One nine.
0:07:35 > 0:07:37One nine and a half, do I?
0:07:37 > 0:07:39One nine and a half. One ten.
0:07:39 > 0:07:42One ten and a half.
0:07:42 > 0:07:45One ten, 11. 11. And 12 I have.
0:07:45 > 0:07:49Give me 12 and a half. 12 and a half. 13. Lady goes.
0:07:49 > 0:07:53113 and a half. 114. 114.
0:07:53 > 0:07:55114 and a half.
0:07:55 > 0:07:59115. 116, is it, half? Yeah?
0:07:59 > 0:08:01Looking for 116 somewhere. 116.
0:08:01 > 0:08:04116 and a half. 117 is at the back. 117.
0:08:04 > 0:08:06117 and a half.
0:08:06 > 0:08:10New bidder, 117 and a half. 118.
0:08:10 > 0:08:13118. 118 and a half. 118 and a half.
0:08:13 > 0:08:15119 I've got stood. At 119.
0:08:15 > 0:08:17At 119. So you fellas are all out.
0:08:17 > 0:08:21At 119 once, 119 and a half.
0:08:21 > 0:08:23119 and a half. 119 and a half. Madam.
0:08:23 > 0:08:29120. 120. 120. 120.
0:08:29 > 0:08:32120. At 120 once, then.
0:08:32 > 0:08:35At 120, twice. Right at the back.
0:08:35 > 0:08:37Sorry, 120 and a half just over here.
0:08:37 > 0:08:40120 and a half. 120 and a half. Thank you, madam. 121.
0:08:40 > 0:08:42121. 121 and a half.
0:08:42 > 0:08:45122. 122.
0:08:45 > 0:08:50122 and a half. 123. At 123.
0:08:50 > 0:08:51123 and a half.
0:08:51 > 0:08:54124.
0:08:54 > 0:08:58At 124. Young lady has it at 124.
0:08:58 > 0:09:01At 124, looking for a half.
0:09:01 > 0:09:04At 124 once, 124 twice,
0:09:04 > 0:09:11124, make it big and bold, because otherwise, it's selling at £124,000,
0:09:11 > 0:09:14and out. Madam, right at the back. Lady in red.
0:09:14 > 0:09:18It was Rose who stayed the course and fought off the competition
0:09:18 > 0:09:22to get the property for £124,000.
0:09:22 > 0:09:25She was, in fact, bidding on behalf of her colleague,
0:09:25 > 0:09:28Martin, who lives and works nearby.
0:09:28 > 0:09:33He owns four other properties, but this was his first buy at an auction.
0:09:33 > 0:09:36He works as an area manger for a dental practice,
0:09:36 > 0:09:41so he must be used to filling holes and polishing up old surfaces.
0:09:41 > 0:09:43That will be handy here.
0:09:43 > 0:09:44# Come up and see me
0:09:44 > 0:09:50# Make me smile... #
0:09:50 > 0:09:53Martin, great to meet you. Tell me why you wanted to buy this place.
0:09:53 > 0:09:57I was looking for a general sort of DIY type project.
0:09:57 > 0:10:02This lent itself to that because there was nothing major structural that needed doing.
0:10:02 > 0:10:07I thought I could come in, give it a makeover, and then either sell it on or rent it out.
0:10:07 > 0:10:09It's in good nick, isn't it?
0:10:09 > 0:10:12Yeah, structurally it's looking pretty good for a Cornish house.
0:10:12 > 0:10:15There's no damp, anything nasty like that, so I thought,
0:10:15 > 0:10:20really it's a matter of strip off what's here, give it a fresh coat of paint, new floorings,
0:10:20 > 0:10:23new doors for out, and just give it a lift and a makeover
0:10:23 > 0:10:26to bring it into this century.
0:10:26 > 0:10:31- Doing something like this alongside a day job does have its issues, doesn't it?- Absolutely.
0:10:31 > 0:10:34My girlfriend won't see much of me in the next couple of months.
0:10:34 > 0:10:40Basically I will just focus on doing this evenings, weekends,
0:10:40 > 0:10:43and when it's done she'll get to see me again.
0:10:43 > 0:10:45Is she OK with that?
0:10:45 > 0:10:48She doesn't have a lot of choice!
0:10:48 > 0:10:52His girlfriend, Ashley, may need to get used to that more in the future,
0:10:52 > 0:10:57as Martin has always wanted to build a full-time career for himself in property development.
0:10:59 > 0:11:01He's using this house as a test
0:11:01 > 0:11:04to see how the current market is faring.
0:11:04 > 0:11:07Tell me exactly what you're going to do with it.
0:11:07 > 0:11:14Basically just rip everything up, new flooring throughout, paint throughout.
0:11:14 > 0:11:16Put a new kitchen in, new bathroom,
0:11:16 > 0:11:20and do something with the heating because there's not proper heating.
0:11:20 > 0:11:25Whether I let it out or sell it on, I think we need to put some heating in there,
0:11:25 > 0:11:28so we'll have a look at the best way of doing that.
0:11:28 > 0:11:31- OK, and budget?- About £3,000.
0:11:31 > 0:11:33- £3,000?!- Yeah.
0:11:33 > 0:11:37Obviously, the main thing in this property will be labour,
0:11:37 > 0:11:44which I'll do myself, and also my father's retired and he needs to keep himself busy,
0:11:44 > 0:11:48so he'll be coming over here to do some work as well,
0:11:48 > 0:11:52so really, by the time we've got kitchen, bathroom,
0:11:52 > 0:11:58that'll be about a couple of grand, and then £1,000 for a bit of paint and floor covering, so about £3,000.
0:11:58 > 0:12:00# You're unbelievable... #
0:12:00 > 0:12:04Just £3,000? Well, he may be getting labour cheap,
0:12:04 > 0:12:08but has he forgotten that he'll be putting in a brand new central heating system, amongst other things?
0:12:08 > 0:12:12I'll be interested to see how he does all that on budget. But thankfully,
0:12:12 > 0:12:17the renovation will include that bizarre window in the back room.
0:12:17 > 0:12:21So, what about the door at the end of the dining room that isn't really a door?
0:12:21 > 0:12:23What are you going to do about that?
0:12:23 > 0:12:27I think that, possibly, I'll put in a new door there
0:12:27 > 0:12:32so we can get outside from the living room as well as through the kitchen,
0:12:32 > 0:12:35which will be useful for summer months.
0:12:35 > 0:12:38So, what about timescales for all of this?
0:12:38 > 0:12:41Well, erm, I'm not under any pressure to get it done,
0:12:41 > 0:12:46however I want to get it done as soon as possible to either re-sell or let,
0:12:46 > 0:12:51so I'm looking to get it done in about three months.
0:12:51 > 0:12:54Then I will see a couple of agents,
0:12:54 > 0:12:58see what their valuation is, see what the market's like.
0:12:58 > 0:13:01If the market's not looking too buoyant,
0:13:01 > 0:13:06then I'll let it out for a period of time until things do recover.
0:13:06 > 0:13:07Congratulations. Well done.
0:13:07 > 0:13:10- We look forward to seeing how you get on.- Thank you.
0:13:13 > 0:13:18# Well you can cry me a river
0:13:18 > 0:13:23# Oh, my darling, oh, my darling Cry me a river... #
0:13:25 > 0:13:27I'm in Plumstead, southeast London.
0:13:27 > 0:13:29It's not the most glamorous stretch of the Thames,
0:13:29 > 0:13:32it's more industrial than chic.
0:13:32 > 0:13:38With Canary Wharf and London City Airport nearby, developments in this area are cropping up all the time.
0:13:38 > 0:13:39Where there are new builds,
0:13:39 > 0:13:42there are bound to be investment opportunities.
0:13:43 > 0:13:46Plumstead really developed in the Victorian times,
0:13:46 > 0:13:51with masses of accommodation built for workers at the nearby Royal Arsenal.
0:13:51 > 0:13:56Rows and rows of little terraces were thrown up to house the men and their families,
0:13:56 > 0:13:58and it's one of those I'm here to see today.
0:13:58 > 0:14:00Well, the ground floor, anyway.
0:14:00 > 0:14:04It's a one-bedroom flat, it's got a guide price of £70,000.
0:14:04 > 0:14:10Yes, you heard right, £70,000 for a one-bedroom flat in London.
0:14:10 > 0:14:12This very flat, in fact,
0:14:12 > 0:14:17sold for £120,000 in 2004, so that's quite a drop.
0:14:17 > 0:14:20Of course, that was before the property market crashed.
0:14:20 > 0:14:23But maybe we'll find other reasons when I get inside.
0:14:23 > 0:14:25Quite disappointing, I have to say.
0:14:25 > 0:14:29It's quite weird seeing the stairs to the flat up there
0:14:29 > 0:14:32straight in front of you with no door,
0:14:32 > 0:14:37and it's quite unusual for these sort of terraces to be divided into two separate properties.
0:14:37 > 0:14:39Maybe there is a reason for that.
0:14:39 > 0:14:41It does feel quite small in here.
0:14:41 > 0:14:45I've got to say, it's not oozing with character, but it does have
0:14:45 > 0:14:48a nice double glazed window to the front.
0:14:48 > 0:14:54And you then negotiate your way through this rather cramped space,
0:14:54 > 0:14:58and you've got a bathroom here, got quite a big storage cupboard through there,
0:14:58 > 0:15:01another storage area here, so a bit of wasted space.
0:15:01 > 0:15:05You could probably utilise this a lot better. And a kitchen here.
0:15:05 > 0:15:08My feeling is it's all rather dark.
0:15:08 > 0:15:12You've got one window to the front and two small windows to the side here,
0:15:12 > 0:15:15but let's not forget that guide price.
0:15:15 > 0:15:18£70,000?
0:15:18 > 0:15:22When you're paying peanuts for a property you can't expect a palace,
0:15:22 > 0:15:25and the general state of this place isn't actually bad at all.
0:15:25 > 0:15:28It doesn't smell damp and it's not horribly dated,
0:15:28 > 0:15:32although both the kitchen and the bathroom could do with a good old scrub.
0:15:32 > 0:15:37Out the back door, through the small bedroom, is a rather nice surprise.
0:15:37 > 0:15:38At least it could be.
0:15:41 > 0:15:46# Oh, it's a jungle out there... #
0:15:50 > 0:15:53So out the back you have a lovely private garden. Or do you?
0:15:53 > 0:15:56In fact, it's not that simple.
0:15:56 > 0:15:57This flat was sold as a garden flat,
0:15:57 > 0:16:00and the only access is via the bedroom.
0:16:00 > 0:16:05But there is nothing in the deeds that states this garden belongs to the property.
0:16:05 > 0:16:11That is a problem, and whoever buys this property needs to get their solicitor on to it straight away,
0:16:11 > 0:16:13since losing this garden could affect the value,
0:16:13 > 0:16:18the saleability, and at the very least, cause no end of complications.
0:16:18 > 0:16:23So it's not just the weeds and shrubs that need to be cleared up here, that legal matter does, too.
0:16:23 > 0:16:28It's probably a mistake on the deeds, but when to comes to property and legal issues,
0:16:28 > 0:16:33you can't assume anything. I'd be on to a solicitor pronto.
0:16:33 > 0:16:37# Listen to your senses And what they have to say
0:16:39 > 0:16:43# Listen to your senses And what they have to say. #
0:16:46 > 0:16:50Everyone is always on the lookout for the next up and coming area,
0:16:50 > 0:16:53and it's a phrase definitely over-used by estate agents
0:16:53 > 0:16:58and those in the industry. So could we call Plumstead up and coming?
0:16:58 > 0:17:04Well, it's certainly getting better, but it's still a long way from the land of boutiques and bistros.
0:17:04 > 0:17:05So why buy here?
0:17:05 > 0:17:10Well, most importantly, in London terms, it's affordable.
0:17:10 > 0:17:14So if you want to be near the city, but you don't have the city salary,
0:17:14 > 0:17:17Plumstead might be worth considering.
0:17:18 > 0:17:22Well, that's what I think, so I asked along a local estate agent
0:17:22 > 0:17:24to see if he agreed.
0:17:30 > 0:17:33The area itself has got a lot of development opportunities.
0:17:33 > 0:17:37There's a lot more applicants being drawn towards Plumstead.
0:17:37 > 0:17:40The local facilities around here, including the transport,
0:17:40 > 0:17:44are giving a lot more options to first time buyers who are looking to purchase,
0:17:44 > 0:17:47and those looking to rent small properties up to the large Victorian houses.
0:17:49 > 0:17:54So we're in agreement on the area. But what does he make of the inside of the flat?
0:17:54 > 0:17:56Truthfully, it's a little bit on the small side.
0:17:56 > 0:17:59I'm quite a big lad, so if I was looking to buy or rent
0:17:59 > 0:18:01I'd be looking for something quite spacious.
0:18:01 > 0:18:06I think with some development opportunities or some modernisation in the property,
0:18:06 > 0:18:08it would be good for a future sell or for rental.
0:18:10 > 0:18:15We don't usually see properties along Plumstead that are small split into one-bedroom flats,
0:18:15 > 0:18:17so it's quite a shame that it's the size that it is.
0:18:17 > 0:18:21I think the person that's done this has purely done it for investment purposes,
0:18:21 > 0:18:25which is why it's such a small flat at the moment.
0:18:25 > 0:18:28So has the split made it a good opportunity for the next owner?
0:18:28 > 0:18:31Its guide price was £70,000.
0:18:31 > 0:18:34What could it re-sell for?
0:18:34 > 0:18:38With some modernisation and some alterations to the property,
0:18:38 > 0:18:42in a good market, you probably could fetch around £115,000 - £120,000.
0:18:42 > 0:18:44What about its rental value?
0:18:44 > 0:18:50Once renovated, per calendar month, I feel the property would achieve £600 to an ideal tenant.
0:18:50 > 0:18:53Most people would prefer to stick around that mark.
0:18:53 > 0:18:56I think it's an achievable price, and it's in a good location.
0:18:56 > 0:19:01I think this property could be a really lovely little investment.
0:19:01 > 0:19:05It's not in bad condition, and it represents the chance to buy in a city
0:19:05 > 0:19:07that so often prices out its residents.
0:19:07 > 0:19:11I'd definitely be looking into the issue with the garden, and get that sorted,
0:19:11 > 0:19:14well, it could be a fabulous one to go for at the auction.
0:19:14 > 0:19:18So who went for it? Let's find out.
0:19:18 > 0:19:20Lot 88, little one-bed flat.
0:19:20 > 0:19:24You bidding? 61, thank you. 62.
0:19:24 > 0:19:2662, 63.
0:19:26 > 0:19:2864.
0:19:28 > 0:19:30Still cheap. 64, 65.
0:19:30 > 0:19:3366.
0:19:35 > 0:19:3866, 67. 68.
0:19:38 > 0:19:4169. 70.
0:19:41 > 0:19:4571. 72. New place. 73.
0:19:45 > 0:19:4774. 75.
0:19:47 > 0:19:5076. 77.
0:19:50 > 0:19:5478. 79.
0:19:54 > 0:19:56It's cheap, 79. One more?
0:19:56 > 0:19:59No? OK, it's with the gentlemen here,
0:19:59 > 0:20:03£78,000, against the lady sitting down on my right.
0:20:03 > 0:20:0678 for the first.
0:20:06 > 0:20:1379, yeah? 79. £80,000. 81?
0:20:13 > 0:20:1581, 82.
0:20:15 > 0:20:1883.
0:20:18 > 0:20:2183. 84.
0:20:21 > 0:20:2384, 85.
0:20:23 > 0:20:2886. No?
0:20:28 > 0:20:29Leave you to it.
0:20:29 > 0:20:34The lady down here bids £85,000 against the gentleman over there.
0:20:34 > 0:20:4185 for the first, 85 for the second, 85 for the third and final time.
0:20:41 > 0:20:44Sold, £85,000.
0:20:44 > 0:20:48At £85,000, those successful bidders were Wayne and Colleen.
0:20:48 > 0:20:52They're brother and sister, and originally from Islington in north London.
0:20:52 > 0:20:56Colleen's day job is a scientist, while Wayne drives a taxi.
0:20:56 > 0:21:02- I caught up with them back at the property to find out what - drove them- to buy this flat.
0:21:02 > 0:21:08# Mr Cab Driver won't stop to let me in... #
0:21:08 > 0:21:12Wayne and Colleen, how about getting this flat for £80,000?
0:21:12 > 0:21:15- Yeah, that was a good bargain. - Fantastic.- Fantastic.
0:21:15 > 0:21:17So are you happy with the price you paid?
0:21:17 > 0:21:20- We are.- Did you for one minute think you'd get it for that price?
0:21:20 > 0:21:27We were prepared to pay slightly higher, but more or less, we got it for what we wanted.
0:21:27 > 0:21:32Who was the person that thought this flat had the most potential, and who wanted to bid for it and why?
0:21:32 > 0:21:36We do some teamwork. I sort of look for the flats and I control the finances.
0:21:36 > 0:21:40And I run the budget. So we sort of work as a team.
0:21:40 > 0:21:46That brother and sister teamwork has seen them build up a small portfolio of properties over the years.
0:21:46 > 0:21:49They manage them on a part-time basis.
0:21:49 > 0:21:52What made them want to buy in Plumstead?
0:21:54 > 0:21:58We'd never been to Plumstead before, but basically, I was looking around London
0:21:58 > 0:22:01and I looked to where the figures seemed to work,
0:22:01 > 0:22:04and it seemed to for Plumstead, so we came down to investigate.
0:22:04 > 0:22:09We looked in the auction, there was a property in Plumstead, and so we just went for it.
0:22:09 > 0:22:12What's the potential you both saw in this flat? Tell me about the viewing here.
0:22:12 > 0:22:16Actually, the day we did the viewing, we only had about 15 minutes,
0:22:16 > 0:22:18so we were basically in here, looked around.
0:22:18 > 0:22:21We thought it didn't need much painting.
0:22:21 > 0:22:25But then we thought we might just re-jig the layout and make it more open-plan.
0:22:25 > 0:22:29What we're thinking to do is remove that wall and make it more open-planned
0:22:29 > 0:22:33to make this space bigger, and then bring the kitchen into the living room area,
0:22:33 > 0:22:37so basically we're going to swap over the kitchen to where the bathroom is.
0:22:37 > 0:22:40So that is, if people like open-plan living, you know,
0:22:40 > 0:22:42you'll have a lounge with a kitchen at the end of it.
0:22:42 > 0:22:45- Yes.- And then move the bathroom to the other end.
0:22:45 > 0:22:47That's nearer the bedroom. It makes more sense.
0:22:47 > 0:22:49# I said something better change
0:22:51 > 0:22:53# I said something better change... #
0:22:54 > 0:22:57Their budget for the work is between £8,000 and £10,000,
0:22:57 > 0:23:00and they hope to do it all within six weeks.
0:23:02 > 0:23:05Did you find out anything about the garden?
0:23:05 > 0:23:09We knew that there was a problem with the garden before we purchased the property,
0:23:09 > 0:23:13so looking through legal, that's the first thing that I spotted, so we thought,
0:23:13 > 0:23:16keep an open mind and we'll come down and look at it,
0:23:16 > 0:23:20and when we looked at it, we realised there's no access to the garden from anywhere else.
0:23:20 > 0:23:24We figured that either the legal work was drawn up incorrectly,
0:23:24 > 0:23:27and so it's not on the lease,
0:23:27 > 0:23:31or the freeholder wants to do a separate deal for the garden.
0:23:31 > 0:23:33Since we didn't know which one was which,
0:23:33 > 0:23:37we thought, "let's bid anyway, keeping in mind that you might need to buy the garden later."
0:23:37 > 0:23:39We're not quite sure of the situation,
0:23:39 > 0:23:43but you have access to the garden, which is the main thing we wanted to know.
0:23:43 > 0:23:46When do you think you're going to find out, Wayne?
0:23:46 > 0:23:50- He's working on that.- Probably about a couple weeks' time.- Yeah.
0:23:50 > 0:23:52Are you slightly nervous about that?
0:23:52 > 0:23:54- A bit.- Do you think maybe you shouldn't have bought,
0:23:54 > 0:23:59because the freeholder may want a large sum of money for that garden?
0:23:59 > 0:24:02- That's a risk...- That's the risk you take with auction properties.
0:24:02 > 0:24:06At the end of the day, if he wants a large sum of money, we have access to the garden,
0:24:06 > 0:24:09so we can just do it as a rental, and they have access to the garden.
0:24:09 > 0:24:12It would be much better if we own the garden as well.
0:24:12 > 0:24:15I hope this works out for you, and I'll keep my fingers crossed for the garden.
0:24:15 > 0:24:18Let's hope it goes your way. Well done for taking the risk anyway.
0:24:18 > 0:24:22- Thank you. - Thank you.- Thank you.
0:24:22 > 0:24:27Wayne and Colleen have got some really interesting and creative plans for this little flat,
0:24:27 > 0:24:30but I'm pretty concerned about this garden.
0:24:30 > 0:24:34I hope Colleen's scientific approach will work its magic,
0:24:34 > 0:24:38- and will cabbie Wayne have- the knowledge - to keep the builders in line?
0:24:38 > 0:24:41You can find out what happens later on in the programme.
0:24:42 > 0:24:46Coming up, there's lots of potential at this house in Gwent.
0:24:46 > 0:24:52And think about converting that into a fourth bedroom. Interesting idea.
0:24:52 > 0:24:56Back in Plumstead, it sounds like good news.
0:24:56 > 0:24:59It's been a fantastic project. I really enjoyed doing it.
0:24:59 > 0:25:02- Yeah.- Me and my sister have got on really well, and I'm really pleased.
0:25:04 > 0:25:07But first, has Martin decided to give up his day job?
0:25:07 > 0:25:11I like the balance of having a full-time job and doing this as a hobby.
0:25:14 > 0:25:19We're back in the coastal village of Par in Cornwall.
0:25:19 > 0:25:23This three-bed house sold for £124,000,
0:25:23 > 0:25:26and needed a lot of work to make it more palatable to modern tastes.
0:25:26 > 0:25:29Luckily, it was bought by Martin,
0:25:29 > 0:25:33who was going to dedicate all his free time to the renovation.
0:25:33 > 0:25:36My girlfriend won't see much of me in the next couple of months.
0:25:36 > 0:25:41Because basically I will just focus on doing this evenings, weekends.
0:25:41 > 0:25:45When it's done, she'll get to see me again.
0:25:45 > 0:25:46Is she OK with that?
0:25:46 > 0:25:48She doesn't have a lot of choice!
0:25:49 > 0:25:51# I've got work to do
0:25:51 > 0:25:53# So much work, yeah, yeah
0:25:53 > 0:25:55# I'm out there trying to make it... #
0:25:55 > 0:26:00Five months later, we've caught up with part-time property developer Martin
0:26:00 > 0:26:04to see if all his hard work paid off, and to find out
0:26:04 > 0:26:07whether his girlfriend Ashley is still speaking to him.
0:26:07 > 0:26:13# You might as well get used to me coming home a little late
0:26:13 > 0:26:16# Cos I I've got work to do... #
0:26:16 > 0:26:22Been quite a hectic four months, weekends, evenings and a couple of weeks' annual leave,
0:26:22 > 0:26:25to really push things on.
0:26:25 > 0:26:29Towards the end I put in some long days, long hours,
0:26:29 > 0:26:33just to keep the momentum going so that I could get it done for a four-month deadline.
0:26:33 > 0:26:37And it's certainly not been wasted time.
0:26:37 > 0:26:40He's ripped everything out and started again.
0:26:40 > 0:26:43New doors, carpets, and thankfully wallpaper too.
0:26:43 > 0:26:48But most striking is the greatly improved kitchen.
0:26:50 > 0:26:54OK. The kitchen was a blank canvas. Took out all the old units.
0:26:54 > 0:26:59Tiled the floor from the front door all the way through to the back door
0:26:59 > 0:27:03so it looks clean and hygienic all the while.
0:27:03 > 0:27:06Put in a fitted cooker and hob.
0:27:06 > 0:27:11Put in a new boiler. Obviously fitted the work surfaces and did some tiling.
0:27:11 > 0:27:15Upstairs, I'm afraid to say, those terrific taps have gone,
0:27:15 > 0:27:18but Martin's gone for a modern look throughout the house,
0:27:18 > 0:27:22and this new bathroom suite looks clean and fresh.
0:27:22 > 0:27:29In the bathroom, the yellow suite was removed, I put in a bath with a shower over with a shower screen,
0:27:29 > 0:27:32tiled top to bottom. I think it gives it a really modern look.
0:27:32 > 0:27:37And he's not just been busy inside, because he's also fitted a new garage door
0:27:37 > 0:27:40to add some all-important kerb appeal.
0:27:40 > 0:27:44And the garden's benefited from being cleared of clutter, too.
0:27:44 > 0:27:46He's certainly been flat out here.
0:27:47 > 0:27:49Basically done everything myself.
0:27:49 > 0:27:55Plastering, plumbing, not a lot of electrical work was to be done,
0:27:55 > 0:28:00so it's really used all of my skills from carpentry for hanging the doors,
0:28:00 > 0:28:04to tiling, plumbing to get all the radiators in, etc,
0:28:04 > 0:28:07so it really has been an all-round job.
0:28:07 > 0:28:09# All by myself
0:28:10 > 0:28:13# All by myself
0:28:13 > 0:28:18# I didn't have nobody to help me I had to do it all by myself... #
0:28:18 > 0:28:21Plastering, tiling, carpentry and plumbing,
0:28:21 > 0:28:25not bad for someone whose day job is area manager for a dental practice.
0:28:25 > 0:28:29But after giving it some thought, there was one thing he decided not to change,
0:28:29 > 0:28:33that patio window at the back.
0:28:33 > 0:28:36I looked at replacing it, however, due to the cost,
0:28:36 > 0:28:38I decided it would stay there.
0:28:38 > 0:28:40It was quite a modern, new unit.
0:28:40 > 0:28:43Obviously anyone who buys the property can look at replacing that,
0:28:43 > 0:28:46putting patio doors out and utilising that space,
0:28:46 > 0:28:49or they may want to put a conservatory across the back of the house,
0:28:49 > 0:28:54so I thought it was best to give potential purchasers that option.
0:28:54 > 0:29:00Martin got help with the finishing touches to the house from his parents and his girlfriend.
0:29:00 > 0:29:05How did their relationship cope under the strain of the work?
0:29:05 > 0:29:07With regards to seeing my girlfriend,
0:29:07 > 0:29:09she's done a lot of work for me here,
0:29:09 > 0:29:13and what we tried to do was balance things where we'd work all day
0:29:13 > 0:29:17and then go out in the evening and then come back here in the evening
0:29:17 > 0:29:22so that we could crack on and get a good weekend's worth of work,
0:29:22 > 0:29:24but still have some fun in between times.
0:29:24 > 0:29:27Martin has been really committed,
0:29:27 > 0:29:30and it's great to hear his girlfriend got involved too.
0:29:30 > 0:29:34But have they managed to keep within that tight £3,000 budget,
0:29:34 > 0:29:38or has that brand-new central heating system pushed it over?
0:29:38 > 0:29:42I set aside £3,000. I've gone slightly over,
0:29:42 > 0:29:46I think about £3,400.
0:29:46 > 0:29:51The main thing that cost more than I'd expected was the heating system.
0:29:51 > 0:29:53I bought brand-new radiators,
0:29:53 > 0:29:59and I was hoping to maybe recycle some old bits and pieces that I had at home.
0:29:59 > 0:30:03Other than that, most things came in as expected.
0:30:04 > 0:30:07What do the experts make of Martin's handiwork?
0:30:07 > 0:30:10We asked along a local estate agent
0:30:10 > 0:30:14and the auctioneer who sold the property to give us their thoughts.
0:30:15 > 0:30:18My first impressions are, "where's the yellow gone?"
0:30:18 > 0:30:22cos the colour scheme was slightly...unique.
0:30:22 > 0:30:26Now it's absolutely going to appeal to everybody.
0:30:26 > 0:30:28I think it's very nice. The fellow who's done it up
0:30:28 > 0:30:33has made a great job. He's put nice floor coverings down.
0:30:33 > 0:30:37He's put the right colours on the walls. It does look very light and airy.
0:30:37 > 0:30:40There's a nice contemporary kitchen and bathroom. I think it's excellent.
0:30:40 > 0:30:44The bathroom looks very nicely fitted, and, very important,
0:30:44 > 0:30:46it's a white suite, which is universally popular.
0:30:46 > 0:30:48It's a real selling feature.
0:30:48 > 0:30:52The kitchen was a bit of its age,
0:30:52 > 0:31:00and now it's a lot brighter and cleaner, and the units are in the right place, and it's today.
0:31:00 > 0:31:03A lot of gardens have got so much foliage in them
0:31:03 > 0:31:07it's really not easy for many to see quite how big they actually are.
0:31:07 > 0:31:12He's done the clever thing, optically, by taking it back nearer to the boundaries,
0:31:12 > 0:31:15so you actually see, "Wow, that's quite a big space".
0:31:15 > 0:31:18There's a nice level garden at the front, and the drive
0:31:18 > 0:31:22does provide plenty of parking with the added bonus of a garage.
0:31:22 > 0:31:25It's got a new door, so there's no work to be done there.
0:31:25 > 0:31:28Martin's spent almost £3,500 on the renovation,
0:31:28 > 0:31:32so, added to the purchase price of £124,000,
0:31:32 > 0:31:36the total outlay here has been just under £128,000.
0:31:36 > 0:31:40How much could the house re-sell for in the current market?
0:31:42 > 0:31:46If the property was brought to the market today,
0:31:46 > 0:31:51I'd expect it to achieve in excess of £150,000,
0:31:51 > 0:31:54but I think that's the cake, and anything over would be icing.
0:31:54 > 0:31:58As an asking price, I would recommend £159,950,
0:31:58 > 0:32:01to achieve around £155,000.
0:32:01 > 0:32:05OK, that's good. That's in line with what I was expecting.
0:32:05 > 0:32:08Taking into account what I spent,
0:32:08 > 0:32:10it would make a good return.
0:32:12 > 0:32:16If it did sell for that higher figure of £155,000,
0:32:16 > 0:32:20that would be an impressive pre-tax profit of around £27,000,
0:32:20 > 0:32:22minus the usual selling expenses.
0:32:22 > 0:32:29In fact, Martin has decided to put the property on the market for £160,000.
0:32:29 > 0:32:34But should he ever change his mind and rent it out, how much could it achieve?
0:32:34 > 0:32:39The rental value of this property would be £695 per calendar month.
0:32:39 > 0:32:45I'd expect the house to achieve about £575 per calendar month rental.
0:32:45 > 0:32:48OK, that's very good. In the event that it doesn't sell
0:32:48 > 0:32:53in the next two, three months, I'll certainly consider letting it out.
0:32:53 > 0:32:56Martin's hard work has paid off on this project,
0:32:56 > 0:33:01but it hasn't tempted him to give up his day job at the dental practice
0:33:01 > 0:33:05in favour of getting his teeth stuck into property developing full-time.
0:33:05 > 0:33:10I like the balance of having a full-time job and doing this as a hobby.
0:33:10 > 0:33:14I think if it became a business and a job it may lose its appeal,
0:33:14 > 0:33:17so I'm quite happy to dabble,
0:33:17 > 0:33:21to keep the day job and do this as a hobby because I enjoy it.
0:33:21 > 0:33:29# Take it easy Take it easy. #
0:33:32 > 0:33:35Well today I'm in Abertillery in south Wales.
0:33:35 > 0:33:38Gwent, in fact. Nice enough little spot.
0:33:38 > 0:33:42A former mining town until the mine closed several years ago.
0:33:42 > 0:33:44Now, it's commuter belt to Cardiff,
0:33:44 > 0:33:48the M4's not too far away, and there's a local train station.
0:33:48 > 0:33:50Let's see what's on offer.
0:33:50 > 0:33:54Well, the mines may have closed in these valleys,
0:33:54 > 0:33:56but this commuter town is still lively,
0:33:56 > 0:34:01and what better area to return to after a day's work in the city?
0:34:01 > 0:34:09# There will be peace in the valley for me some day... #
0:34:09 > 0:34:12I'm here to see a three-bedroomed terraced house.
0:34:12 > 0:34:17At a guide price of £39,000, it's just half a mile from the town centre, which is pretty good.
0:34:17 > 0:34:19It looks all right from the outside.
0:34:19 > 0:34:24'So we're off to a good start, a great price and a lovely location.
0:34:24 > 0:34:30'Hopefully they'll be no nasty surprises behind those welcoming bay windows.'
0:34:30 > 0:34:34So, any great surprises? Well, actually, this room is for sure.
0:34:34 > 0:34:36It's obviously been knocked through at some point
0:34:36 > 0:34:40to create a really nice-sized, well, I guess living room/dining space,
0:34:40 > 0:34:46immediately giving this property a good, open feel to what's in store over there.
0:34:46 > 0:34:50Oh. Not quite as nice in here, although it's a bit odd,
0:34:50 > 0:34:53because we've got units and things which are quite pleasant,
0:34:53 > 0:34:55I like this double sink thing going on there,
0:34:55 > 0:34:58but they haven't bothered with things like tiles or, actually, decoration.
0:34:58 > 0:35:00Not a bad-sized space, though.
0:35:00 > 0:35:04If you clean this up it would actually be quite nice.
0:35:04 > 0:35:08So, to carry on, then, finally, classic sort of layout for this kind of property.
0:35:08 > 0:35:10The loo and bathroom though there.
0:35:10 > 0:35:13And it's much the same story in the bathroom.
0:35:13 > 0:35:17The fixtures and fittings are not bad, but everything's poorly fitted.
0:35:17 > 0:35:19The wiring appears suspect,
0:35:19 > 0:35:24the plumbing's looking dodgy, and even the toilet isn't safe to use.
0:35:24 > 0:35:27Let's hope we have more luck upstairs.
0:35:27 > 0:35:29Here, there are three good-sized bedrooms.
0:35:29 > 0:35:33The front one's the width of the house, so I reckon you could split it in two,
0:35:33 > 0:35:36making another bedroom or even an en suite.
0:35:36 > 0:35:40But I've also spotted a way of sneaking a further bedroom in here.
0:35:40 > 0:35:44Glancing into the loft space, it looks like that has been partially converted,
0:35:44 > 0:35:47so make sure there's planning permission,
0:35:47 > 0:35:50and think about converting that into a fourth bedroom.
0:35:50 > 0:35:53Interesting idea.
0:35:53 > 0:35:56The house also comes with space out the back.
0:35:56 > 0:36:01It's more of a yard than a garden, but it's got a handy access road running behind.
0:36:01 > 0:36:07So all in all, this was a great little buy for its guide price of £39,000.
0:36:07 > 0:36:10Obviously in need of renovation, but with a lot of potential.
0:36:10 > 0:36:16What does a local property expert think? I asked one to take a look.
0:36:20 > 0:36:24It's an interesting property because it's bay fronted
0:36:24 > 0:36:27in a street of mainly terraced houses.
0:36:27 > 0:36:29But it's a nice house, it's quite spacious,
0:36:29 > 0:36:32got a forecourt which is great, very popular,
0:36:32 > 0:36:35because lots of housing here is straight onto the pavement.
0:36:35 > 0:36:38And it's got some scope as to how you could change it round.
0:36:38 > 0:36:42The room here could be divided, make it a four-bed if you wanted.
0:36:42 > 0:36:44You could bring the bathroom up and still split this
0:36:44 > 0:36:50and have three bedrooms, so, yeah, it's got a lot of pluses.
0:36:50 > 0:36:56So with some work done here, what could it make on the resale market?
0:36:56 > 0:37:01If the house was renovated and the outside was smartened up,
0:37:01 > 0:37:05we'd be looking at £65-75,000.
0:37:05 > 0:37:08What if the buyer decided to rent it out?
0:37:10 > 0:37:13If you were going to put this property onto the rental market,
0:37:13 > 0:37:19you'd be looking at £375-400 per calendar month.
0:37:19 > 0:37:22So a bit of work to be done to sort this place out,
0:37:22 > 0:37:24especially the kitchen and bathroom,
0:37:24 > 0:37:31but in general, a good-sized property that would make a lovely home or a great rental property.
0:37:31 > 0:37:34Let's see who went for it when it went to the auction.
0:37:34 > 0:37:38Right, on we go now to lot number 34, ladies and gentlemen.
0:37:38 > 0:37:42Put a bid in at 36. 36, I'm bid, thank you, madam. At 36,000,
0:37:42 > 0:37:447,000, 8,000, 38.
0:37:44 > 0:37:4739, can I? Nine is bid.
0:37:47 > 0:37:49At 39,000, fill it up, 40 now.
0:37:49 > 0:37:52The hammer's up then at 39.
0:37:52 > 0:37:5640, thank you, at 40,000. At 40 I'm bid, and one if you like it.
0:37:56 > 0:37:58At £40,000, the bid's on my right.
0:37:58 > 0:38:00One, thank you, on my left.
0:38:00 > 0:38:04At 41,000, I'm selling all the time.
0:38:04 > 0:38:08Make no mistake, this is a cheap property at 41,000. The bid's down here.
0:38:08 > 0:38:10You're out behind.
0:38:10 > 0:38:14At £41,000, the hammer's up, he's going to get it, then,
0:38:14 > 0:38:17quick if you want it, are you all done at £41,000?
0:38:17 > 0:38:20It's yours, sir. Buyer's number, please.
0:38:20 > 0:38:25The bidding for this lot was short and sweet, and it was Geoff
0:38:25 > 0:38:28who bought it for £41,000.
0:38:28 > 0:38:32He's no stranger to the area, having moved back to Wales from London
0:38:32 > 0:38:34to start a property developing business here.
0:38:34 > 0:38:39He and his wife, Janet, own a portfolio of 20 buy-to-let properties.
0:38:39 > 0:38:42I caught up with him back at his 21st purchase
0:38:42 > 0:38:45to find out why he'd gone for it.
0:38:45 > 0:38:48- Geoff, lovely to meet you. - Nice to meet you.- Congratulations.
0:38:48 > 0:38:51- Thank you very much.- Tell me why you wanted to buy this place.
0:38:51 > 0:38:53We own one or two properties in the area,
0:38:53 > 0:38:55and we were looking for some more.
0:38:55 > 0:38:59We've got people waiting, tenants waiting to move into some properties.
0:38:59 > 0:39:02- Oh, wow.- We've been looking for a while but because of the market,
0:39:02 > 0:39:05we've been taking our time.
0:39:05 > 0:39:08My wife saw this, we went to the auction, and here we are.
0:39:08 > 0:39:10Right. What was it about this one you liked?
0:39:10 > 0:39:16Not really, I didn't come here and see it, my wife, she saw it in the catalogue, guide price was right.
0:39:16 > 0:39:21Did a little bit of research and thought there wouldn't be too many people interested
0:39:21 > 0:39:25because it was a leasehold property, not freehold, so we thought that would put people off,
0:39:25 > 0:39:27so hopefully keep the price low.
0:39:27 > 0:39:30So we went to the auction and watched to see what happened,
0:39:30 > 0:39:31and then put a bid in.
0:39:31 > 0:39:37When Geoff got to the auction, there was some confusion as to whether the property was leasehold or freehold.
0:39:37 > 0:39:43Fortunately he and Janet had done their homework when it came to that all-important legal pack.
0:39:43 > 0:39:45# Just checking
0:39:45 > 0:39:47# Just checking... #
0:39:47 > 0:39:50We had a look at the legal pack, my wife does all the research,
0:39:50 > 0:39:52so although we hadn't seen the property,
0:39:52 > 0:39:56we weren't exactly buying it blind because we knew the situation.
0:39:56 > 0:39:59So we just asked our solicitor to look into it,
0:39:59 > 0:40:03find out what the cost of purchasing the lease was, and went from there, really.
0:40:03 > 0:40:07Right. But certainly if you hadn't read the legal pack it could've caught you unawares?
0:40:07 > 0:40:11Yes, well, obviously, and it had a short lease, just over 50 years,
0:40:11 > 0:40:17so if you weren't aware of that and you were looking to remortgage the property, you'd have come unstuck.
0:40:17 > 0:40:21Getting stuck isn't something Geoff likes to do.
0:40:21 > 0:40:24After all, he and his wife moved from London six years ago
0:40:24 > 0:40:27to find a better lifestyle back home back in Wales.
0:40:27 > 0:40:30# We gotta get out of this place
0:40:30 > 0:40:35# If it's the last thing we ever do... #
0:40:35 > 0:40:39- I worked at a bank for 23 years in the City, as did my wife.- Oh, wow.
0:40:39 > 0:40:43And then we decided we wanted a more relaxed lifestyle,
0:40:43 > 0:40:47so we moved back to Wales, which is where I'm from originally.
0:40:47 > 0:40:50Bought a little guesthouse, which was my wife's idea.
0:40:50 > 0:40:55We ran that for a year, she didn't like that so we closed that and turned it into a family home,
0:40:55 > 0:40:58and then started buying properties and renovating them.
0:40:58 > 0:41:01All with a view to a more stress-free life?
0:41:01 > 0:41:04Yeah, that's right. That was the original idea, anyway!
0:41:04 > 0:41:07Hasn't always been like that, as I'm sure you know.
0:41:07 > 0:41:10So tell me what you're going to do to sort this place out.
0:41:10 > 0:41:12Plumbing and electrics first.
0:41:12 > 0:41:16Get those sorted, make sure it's all safe and working.
0:41:16 > 0:41:21And then it's a decision whether to plaster over the top of the artex or strip it all back.
0:41:21 > 0:41:26Some of the ceilings will have to come down, there's a water leak in here somewhere.
0:41:26 > 0:41:28I think the ceiling sagged,
0:41:28 > 0:41:31I think there's water coming through the roof,
0:41:31 > 0:41:34so make it watertight first. Plumbing, electrics, then go from there.
0:41:34 > 0:41:38So how much will you spend on getting this place up to scratch?
0:41:38 > 0:41:42Between £10-15,000, including purchasing the lease.
0:41:43 > 0:41:48Geoff's solicitor found out that the freehold will cost £6,000,
0:41:48 > 0:41:52so that means Geoff has £9,000 left for the overhaul here.
0:41:52 > 0:41:56To help stay within that budget, he'll do a lot of the work himself.
0:41:56 > 0:41:59In fact, on his return to Wales, he went back to college
0:41:59 > 0:42:05to learn the renovation skills he thought he'd need for his new career in property developing.
0:42:05 > 0:42:07# It's not hard to tell
0:42:07 > 0:42:10# That I've learned my lesson well... #
0:42:10 > 0:42:14Started off with bricklaying, moved on to plastering,
0:42:14 > 0:42:17did carpentry, it was like a year's introductory course for each one.
0:42:17 > 0:42:21Then an introductory course on plumbing, and then subsequently
0:42:21 > 0:42:24I've done two years' plumbing to become a qualified plumber.
0:42:24 > 0:42:26Wow. And have you enjoyed that side of things?
0:42:26 > 0:42:30Yeah, I have. Well, initially because I didn't have a lot of knowledge,
0:42:30 > 0:42:33I wanted to learn how to do it because it's difficult bringing people in
0:42:33 > 0:42:37and trying to supervise them when you don't know what you're talking about,
0:42:37 > 0:42:42so I thought if I had some knowledge, I could tell if they were doing it right or doing it wrong.
0:42:42 > 0:42:45And I learned the hard way. So I've enjoyed it, yeah.
0:42:45 > 0:42:49- Good luck with it.- Thank you. - Looking forward to seeing how you get on.
0:42:49 > 0:42:50Well, there you go,
0:42:50 > 0:42:57another example of why you have to read the legal pack before you buy a property at auction.
0:42:57 > 0:43:02This place could have caused somebody a lot of problems by the fact it wasn't freehold.
0:43:02 > 0:43:05Anyway, Geoff certainly seems to know what he's doing,
0:43:05 > 0:43:08he's got the plan worked out, and I'm sure he'll do a great job.
0:43:08 > 0:43:11You can find out how he gets on later in the show.
0:43:14 > 0:43:16Making the correct design decisions
0:43:16 > 0:43:18can affect the profit you make on a property.
0:43:18 > 0:43:21It is exciting turning ideas into reality,
0:43:21 > 0:43:25but how did today's buyers get on? Let's find out.
0:43:29 > 0:43:33I'm back down by the River Thames in Plumstead, southeast London.
0:43:33 > 0:43:38This small one-bedroom flat sold at auction for just 85 grand.
0:43:38 > 0:43:40It went to brother and sister Wayne and Colleen,
0:43:40 > 0:43:44who work together managing their property portfolio.
0:43:44 > 0:43:48# Ooh, brother, brother, brother...
0:43:48 > 0:43:51It's not exactly the chic-est of riverside locations,
0:43:51 > 0:43:54but that didn't put them off.
0:43:54 > 0:43:56I was looking around London at where the figures seemed to work,
0:43:56 > 0:44:00and it seemed to for Plumstead, so we thought, "Let's come down and investigate."
0:44:00 > 0:44:03We looked in the auction, there was a property in Plumstead,
0:44:03 > 0:44:08and so we just went for it. This is our first venture into Plumstead.
0:44:08 > 0:44:10So has their adventurous spirit paid off?
0:44:10 > 0:44:14We caught up with Colleen and Wayne four months later to find out.
0:44:14 > 0:44:17Wayne's day job as a cab driver is certainly handy
0:44:17 > 0:44:20for crossing London to visit their little flat.
0:44:20 > 0:44:22Now, did I say little?
0:44:29 > 0:44:33The major thing that's happened is that we've decided to open up the flat,
0:44:33 > 0:44:36so we've taken down the wall in the living room
0:44:36 > 0:44:42and made the kitchen more open-plan, kitchen, living/dining area.
0:44:42 > 0:44:46We put a fireplace in. We've put in laminate flooring, we've remodelled
0:44:46 > 0:44:52the flat by putting spotlights in, and we really worked hard here.
0:44:52 > 0:44:54They certainly have,
0:44:54 > 0:44:58because where that new kitchen is now, used to be the bathroom.
0:44:58 > 0:45:00So where's the bathroom gone?
0:45:00 > 0:45:03Well, that's easy - it's where the kitchen used to be!
0:45:03 > 0:45:06The bathroom was the most complicated bit of the project,
0:45:06 > 0:45:11because actually there was a boiler in this room, this was originally the kitchen,
0:45:11 > 0:45:14and so we've moved the kitchen on the other side,
0:45:14 > 0:45:17but we didn't want to have to relocate the boiler,
0:45:17 > 0:45:18and so to cover that,
0:45:18 > 0:45:23what we've done is actually built a false wall and brought it forward,
0:45:23 > 0:45:26and we've hidden the boiler behind this mirrored cupboard.
0:45:26 > 0:45:32And then because the bathroom was made smaller, we had to compromise by making the bath fittings smaller,
0:45:32 > 0:45:34so we've actually got a smaller size bath,
0:45:34 > 0:45:38and we also then decided to fit a corner sink because
0:45:38 > 0:45:40we were limited with space,
0:45:40 > 0:45:44and actually this is my favourite room in the entire flat.
0:45:44 > 0:45:46On top of that, the old bedroom has been brightened up
0:45:46 > 0:45:51with new flooring, a lick of paint and some updated lighting as well.
0:45:51 > 0:45:53And they've been busy out back too.
0:45:56 > 0:45:59So basically the garden was a bit of a jungle when we arrived,
0:45:59 > 0:46:02so what we've done is we've cleared the garden,
0:46:02 > 0:46:07and we've repainted all the walls, we've fixed the guttering, and when we acquired the property,
0:46:07 > 0:46:11the garden wasn't actually included in the lease,
0:46:11 > 0:46:14but we have our written permission to use the garden,
0:46:14 > 0:46:18and I'm negotiating with the solicitors now about us acquiring the garden,
0:46:18 > 0:46:21so we're just quite happy to have the extra outside space.
0:46:22 > 0:46:25So how did the siblings get on during the build?
0:46:25 > 0:46:28Has it all been happy families?
0:46:28 > 0:46:31We've got a really good relationship, me and my sister.
0:46:31 > 0:46:35We've worked through the project, I've been managing the building
0:46:35 > 0:46:39and she's been really managing the finance, and we've really worked well, I'm pleased.
0:46:39 > 0:46:42We have similar tastes, we like contemporary looks.
0:46:42 > 0:46:46When we're doing a project like this, we usually use the same format
0:46:46 > 0:46:50on all the flats that we do, so it's quite easy to work together.
0:46:50 > 0:46:58# Happy, happy, happy Happy families... #
0:46:58 > 0:47:02Sounds like Wayne and Colleen run a pretty tight ship on their properties,
0:47:02 > 0:47:06but has their budget remained watertight?
0:47:06 > 0:47:10The original budget was 10,000 and we spent 9,500,
0:47:10 > 0:47:12so we're still within budget.
0:47:12 > 0:47:16So added to Wayne and Colleen's purchase price of 85,000,
0:47:16 > 0:47:22that £9,500 budget makes a total spend just short of 95 grand.
0:47:22 > 0:47:25Have they invested that money wisely?
0:47:25 > 0:47:27Let's hear what two local estate agents think.
0:47:33 > 0:47:37First impressions are very nice, very small, but nice finish.
0:47:37 > 0:47:39Good kitchen, good bathroom.
0:47:39 > 0:47:41Nice, clean lines.
0:47:41 > 0:47:43Nice, low-voltage spotlighting,
0:47:43 > 0:47:46so it's a good property, just obviously small.
0:47:46 > 0:47:49First impression is it's a small property.
0:47:49 > 0:47:52Tidy, clean and bright.
0:47:52 > 0:47:56The bathroom is a very nice bathroom,
0:47:56 > 0:48:00they've done a good job on that, small space but they've done a good job on it,
0:48:00 > 0:48:03so I'm quite pleased with the result of the bathroom.
0:48:03 > 0:48:10Personally, I think because of the location, it could be a good buy for the first-time buyer.
0:48:10 > 0:48:14It's a good location for the local amenities, close to the bus routes,
0:48:14 > 0:48:18only about a mile from Woolwich town centre, so it's good for a first-time buyer
0:48:18 > 0:48:21that perhaps can't afford to buy a massive property,
0:48:21 > 0:48:23but to get on the first steps of the ladder.
0:48:23 > 0:48:25Or if the owners decide to let it out,
0:48:25 > 0:48:29it's an easy let, really, the market is very buoyant for rentals.
0:48:29 > 0:48:34Wayne and Colleen hope to add this flat to their growing portfolio of buy-to-let properties.
0:48:34 > 0:48:36What rental income could they earn?
0:48:36 > 0:48:41We could let this for between £600-625 per calendar month.
0:48:41 > 0:48:45I would rent this for £650 per calendar month.
0:48:45 > 0:48:49- That's right on target. Again, what we predicted. Very happy with that.- Yeah.
0:48:49 > 0:48:53But what if they changed their minds and decided to sell?
0:48:53 > 0:48:58Remember, they've spent just short of 95,000 on the flat in total,
0:48:58 > 0:49:00plus the usual fees and expenses, of course.
0:49:00 > 0:49:06The most I'd put his property on the market for would be £110,000.
0:49:06 > 0:49:13If you do not include the garden in the property, I would put it in the market in between £105-110,000.
0:49:13 > 0:49:15That's fine, at the minute we're planning to rent,
0:49:15 > 0:49:18so that won't affect us while we're sorting out the garden.
0:49:20 > 0:49:23And if it turns out they do own that garden, the experts think
0:49:23 > 0:49:29that could put the resale value up to £120,000.
0:49:29 > 0:49:31That's really excellent, happy with that.
0:49:31 > 0:49:33Yeah, that's exactly what we predicted, actually.
0:49:33 > 0:49:36# Close your eyes
0:49:36 > 0:49:38# Cross your fingers... #
0:49:38 > 0:49:42Let's hope Wayne and Colleen get the result they're hoping for,
0:49:42 > 0:49:47but even if they don't, it certainly won't put them off building up their property business in the future.
0:49:47 > 0:49:48We wish them luck.
0:49:48 > 0:49:52- It's been a fantastic project, I've really enjoyed doing it.- Yeah.
0:49:52 > 0:49:55Me and my sister have got on really well, and I'm really pleased.
0:49:55 > 0:49:57Yeah, I'm quite pleased with the finish, too.
0:49:57 > 0:49:59- We work well as a team.- Good.
0:50:03 > 0:50:06We're back in Gwent, south Wales,
0:50:06 > 0:50:10where this three-bedroom house sold for £41,000 at auction.
0:50:10 > 0:50:15It was bought by developer, Geoff, who already had a portfolio of 20 properties.
0:50:15 > 0:50:19He's been renting properties since he gave up his City job in London
0:50:19 > 0:50:23six years ago, and has picked up a few skills on the way.
0:50:23 > 0:50:28Started off with bricklaying, moved on to plastering, did carpentry,
0:50:28 > 0:50:30then an introductory course on plumbing.
0:50:30 > 0:50:35- Then subsequently, I've done two years' plumbing to become a qualified plumber.- Wow.
0:50:35 > 0:50:40But five months later, it's his wife Janet's gardening skills
0:50:40 > 0:50:43that catch the eye when you first arrive at the property.
0:50:43 > 0:50:48# Roses are red, my love
0:50:48 > 0:50:52# Violets are blue
0:50:52 > 0:51:00# Sugar is sweet, my love But not as sweet as you. #
0:51:00 > 0:51:04Well, at the front basically we just painted over the render.
0:51:04 > 0:51:08It was pebble-dashed, so we just tried to make it look a bit more attractive.
0:51:08 > 0:51:11Then my wife with the flowers, put them all out ready,
0:51:11 > 0:51:14just to give it a bit of kerbside appeal so whatever we do with it,
0:51:14 > 0:51:17if somebody comes to look they'll have it straight away, hopefully.
0:51:17 > 0:51:20Once their attention has been grabbed outside,
0:51:20 > 0:51:25they can appreciate that Geoff has completely transformed the inside too.
0:51:25 > 0:51:28It now looks brighter and more spacious,
0:51:28 > 0:51:31making it even more tempting to potential tenants.
0:51:31 > 0:51:35I replastered all the walls, because they were artexed originally.
0:51:35 > 0:51:39Most of the ceilings were replaced because they were artexed,
0:51:39 > 0:51:43some of them had dropped or sagged, so we just replaced those.
0:51:43 > 0:51:46And then just skimmed it and decorated it throughout.
0:51:46 > 0:51:52But it's not just his plastering and decorating skills that have been put to the test.
0:51:52 > 0:51:55With help from his sons he's re-floored every room throughout the house,
0:51:55 > 0:52:01but it's been in the bathroom and the kitchen that he's been busiest.
0:52:01 > 0:52:04OK, well, in the bathroom here, there was a hole in the ceiling,
0:52:04 > 0:52:07so we replaced the ceiling.
0:52:07 > 0:52:10The bathroom suite was already here, so we took that out,
0:52:10 > 0:52:16skimmed the walls, tiled the walls, replaced the bath, tiled all the floors,
0:52:16 > 0:52:19and then once we'd finished that, we moved into the kitchen.
0:52:19 > 0:52:25In here, the kitchen was all fitted, so we just took it out because the walls were in a bit of a state,
0:52:25 > 0:52:29plastered all the walls, again tiled the windowsill,
0:52:29 > 0:52:33tiled the back of the units, put it all back in,
0:52:33 > 0:52:37tiled the floors, and that's what we did in the kitchen, really.
0:52:37 > 0:52:42Whilst renovating the kitchen, Geoff discovered more leaks in the ceiling,
0:52:42 > 0:52:45and that their source was the roof round the back.
0:52:45 > 0:52:48# I've got a leak in this old building
0:52:48 > 0:52:50# Got a leak
0:52:50 > 0:52:54# Leaking in this old building
0:52:54 > 0:52:56# Leak
0:52:56 > 0:52:58# It gives me a mighty bad feeling... #
0:53:01 > 0:53:03Mostly it was gutters blocked,
0:53:03 > 0:53:06some of the fascias were damaged so we replaced those,
0:53:06 > 0:53:11cleaned all the gutters, replaced some of the pipework, and it was OK.
0:53:11 > 0:53:14Thankfully everything is now watertight,
0:53:14 > 0:53:16which is just as well in the valleys.
0:53:16 > 0:53:19# I get rain, rain, rain
0:53:19 > 0:53:21# I get rain, rain, rain... #
0:53:21 > 0:53:26And there's something else out the back that's a bit more weather-proof, that old shed.
0:53:26 > 0:53:28# There's a hole in this old building... #
0:53:30 > 0:53:34The shed was damaged, so we just replaced some of the wood on the bottom of the shed,
0:53:34 > 0:53:35and then stained it all.
0:53:35 > 0:53:39The next-door neighbours put a new wooden fence up, which was handy.
0:53:39 > 0:53:43Geoff's latest training course came in handy too.
0:53:43 > 0:53:46Two days a week I've been doing a gas course,
0:53:46 > 0:53:50so I can do all the central heating, so I managed to sort that out here.
0:53:50 > 0:53:55One of the bedrooms was missing a radiator, so we put a new radiator in and ran all the pipework,
0:53:55 > 0:53:58so we can now do everything apart from electrics.
0:53:58 > 0:54:00And that's next on the agenda.
0:54:00 > 0:54:07# We'll always be together Together in electric dreams
0:54:07 > 0:54:10Geoff and Janet had budgeted £10,000 for all the work,
0:54:10 > 0:54:13but it actually came in at just under 5,000.
0:54:13 > 0:54:19They did it on schedule as well, taking only around eight weeks.
0:54:19 > 0:54:22But what will a local property expert make of their work?
0:54:22 > 0:54:25We asked one along to have a look.
0:54:25 > 0:54:29The house from the front does actually look quite attractive,
0:54:29 > 0:54:32and having four or five steps up to the front door may preclude
0:54:32 > 0:54:34some of the older buyers we sometimes see,
0:54:34 > 0:54:37but a typical family buyer wouldn't be a problem at all.
0:54:37 > 0:54:42It's been modernised with a fair degree of consideration,
0:54:42 > 0:54:46neutral colours and reasonably good quality fixtures and fittings.
0:54:46 > 0:54:50The kitchen layout is fairly typical of these sort of properties.
0:54:50 > 0:54:53It's been well fitted out with space for a washing machine,
0:54:53 > 0:54:59and of course it's got the oven and hob already built in which is what most people want round here.
0:55:01 > 0:55:04The bathroom has been well fitted out. It's got a shower screen as well,
0:55:04 > 0:55:07electric shower, and Jacuzzi-style bath
0:55:07 > 0:55:11is always a very popular style to have in a property.
0:55:12 > 0:55:16So how much value has Geoff's work added to the house?
0:55:16 > 0:55:18Remember he bought it for £41,000,
0:55:18 > 0:55:23and has spent £6,000 buying the leasehold and £5,000 on the work.
0:55:23 > 0:55:29So a total outlay here of around £52,000 plus legal fees, of course.
0:55:30 > 0:55:33I'd recommend an asking price of £75,000 on this property.
0:55:33 > 0:55:40We've spent about £55,000, so we've made about £20,000 for eight weeks' work, so yeah, more than pleased.
0:55:40 > 0:55:42So a great potential resell profit,
0:55:42 > 0:55:47but Geoff's planning to let it out and has already had interest.
0:55:47 > 0:55:50How much rental should he charge?
0:55:50 > 0:55:55The rental figure for this property should achieve in the region of £425 per calendar month.
0:55:55 > 0:55:59Yeah, that's what we've let it for. It's let for 425.
0:55:59 > 0:56:05So that's spot on. Geoff and Janet really seem to have taken to this new property managing career
0:56:05 > 0:56:09since their move from London six years ago.
0:56:09 > 0:56:12We spend more time together and there's a lot less pressure.
0:56:12 > 0:56:15we both worked for high-street banks in the City,
0:56:15 > 0:56:22and so to come back out to the countryside and take things a little bit easier, it's much nicer.
0:56:22 > 0:56:24We prefer this type of lifestyle.
0:56:24 > 0:56:30Just as well, because they've already been on the lookout for their next project.
0:56:30 > 0:56:34# I just can't get enough I just can't get enough... #
0:56:34 > 0:56:39We've got another project lined up, it's about two miles away, similar sort of property,
0:56:39 > 0:56:44we bought it at auction, different auction, so we should be starting that shortly,
0:56:44 > 0:56:47and we're looking now to find another one ready for Christmas,
0:56:47 > 0:56:50so we'll get a little winter project organised
0:56:50 > 0:56:53so then we're ready, it'll take us into the new year.
0:56:56 > 0:57:00Well, we hope you've enjoyed our insight into the world of auctions.
0:57:00 > 0:57:03So join us next time for more Homes Under The Hammer.
0:57:03 > 0:57:05- We'll see you then. - Goodbye.- Goodbye.
0:57:11 > 0:57:14Subtitles by Red Bee Media Ltd
0:57:14 > 0:57:17E-mail subtitling@bbc.co.uk