0:00:02 > 0:00:08- Hello!- Home is where the heart is, they say, but is your heart in buying a property at auction?
0:00:08 > 0:00:13Let's find out who put their heart and soul into buying Homes Under The Hammer.
0:00:38 > 0:00:44Buying a property at auction can be a road to success, but there are also risks involved.
0:00:44 > 0:00:52Yes, even experienced developers can get it wrong. So what got people interested at the auctions today?
0:00:53 > 0:00:59I'm in Wiltshire, giving you my slant on this curious property.
0:00:59 > 0:01:02Doorframe - completely wonky.
0:01:02 > 0:01:07This house in Cornwall looks like a beauty, but there's a beast within.
0:01:07 > 0:01:12Could these be the scrapings of the Beast of Bodmin Moor?
0:01:13 > 0:01:18And this terraced house in Tooting, London, has a teeny tiny bedroom.
0:01:18 > 0:01:23This is how small it is. I can almost touch the walls.
0:01:23 > 0:01:29All these properties have been sold at auction and we'll find out who bought them and what they paid
0:01:29 > 0:01:32when they went under the hammer.
0:01:37 > 0:01:43Welcome to Warminster in Wiltshire on this rather cold and misty winter morning.
0:01:45 > 0:01:48# Baby, it's cold outside
0:01:48 > 0:01:50# Out here in the rain... #
0:01:50 > 0:01:57I'm here to see this town centre shop. It's got a three-bedroom flat above, it's Grade 2-listed
0:01:57 > 0:02:03and it went to auction with a guide price of £100,000, but before we look inside...
0:02:03 > 0:02:10I've spotted a pretty nasty crack up there. It's a very old building and it could be nothing to worry about,
0:02:10 > 0:02:14but I would definitely want that checked out by an expert.
0:02:16 > 0:02:20Already the alarm bells are ringing with this property.
0:02:20 > 0:02:25Let's start by looking at the shop before the flat above.
0:02:29 > 0:02:34# Sure looks warm inside Through the window pane... #
0:02:36 > 0:02:40The shop has a floor area of 640 square feet.
0:02:40 > 0:02:44It's vacant at present, but was occupied until recently,
0:02:44 > 0:02:47earning an income of £4,500 a year.
0:02:49 > 0:02:54In the past, it's been home to a clothes shop, a computer shop,
0:02:54 > 0:02:59and most recently they sold sandbag filling devices for flood defence,
0:02:59 > 0:03:06so quite a varied life. It's also in a pretty central location. You've got the town just there.
0:03:06 > 0:03:12So you should get some passing trade, but one big disadvantage here is no car parking for customers
0:03:12 > 0:03:14immediately outside.
0:03:16 > 0:03:22The shop has a wide range of occupants, but I still think it's got great potential
0:03:22 > 0:03:24as it's in a central location.
0:03:26 > 0:03:32At the rear is the back door, which is also the entrance to the residential property above.
0:03:32 > 0:03:37Unfortunately, to get access to the door and entry to the flat,
0:03:37 > 0:03:41you have to walk down this rather narrow, dark alleyway.
0:03:45 > 0:03:51So let's take a look at this three-bedroomed flat.
0:03:51 > 0:03:56They're quite steep stairs, but here we have the living quarters.
0:03:56 > 0:04:01Quite disappointing. Got a bit of a shabby feel. It needs upgrading.
0:04:01 > 0:04:06This kitchen, for starters. Although you have got a pretty window with views over the rooftops.
0:04:08 > 0:04:13I think the kitchen needs to be replaced and the layout changed.
0:04:15 > 0:04:19And here's the first internal sign of structural damage -
0:04:19 > 0:04:23the sloping doorway which leads to the sitting room.
0:04:23 > 0:04:30For a Grade 2-listed property, I've not seen any of the period features I would expect.
0:04:30 > 0:04:34Let's head on up another set of steep stairs.
0:04:37 > 0:04:43Up here on the second floor is one of the bedrooms. A couple of things you need to think about.
0:04:43 > 0:04:46This wall is damp to the touch.
0:04:46 > 0:04:51Look. You can see there's just plaster falling away behind there.
0:04:51 > 0:04:57I expect it's possibly something to do with the guttering, so that needs to be looked at.
0:04:57 > 0:04:59And have a look over here.
0:04:59 > 0:05:03Look, the doorframe - completely wonky.
0:05:03 > 0:05:07This whole property definitely feels like it's on a bit of a slant.
0:05:07 > 0:05:15Coupled with that huge crack on the front, it's a house where I would definitely recommend a full survey.
0:05:15 > 0:05:19There are more interesting angles in the master bedroom.
0:05:19 > 0:05:24Whoever bought it will have to learn to love its slopes and slants.
0:05:24 > 0:05:30The cost versus return and planning permission needed for a listed property makes the expense
0:05:30 > 0:05:32of straightening it up prohibitive.
0:05:35 > 0:05:42Lastly on this floor is the bathroom, before I tackle one more flight of stairs.
0:05:43 > 0:05:46Now this is where it gets rather interesting!
0:05:46 > 0:05:51You've got real steep access into this room. No handrail.
0:05:51 > 0:05:57So potentially it could be quite dangerous, but there is enough head height up here in this attic.
0:05:57 > 0:06:01A few more character features than the rest of the building.
0:06:01 > 0:06:06You could get a double bed in there, but this makes me laugh.
0:06:06 > 0:06:11This does a good job for the bathroom, letting light in.
0:06:11 > 0:06:17But this is glass, it's probably dangerous. I'd definitely get that sorted out.
0:06:17 > 0:06:24You could use this as a bedroom, but it's good for storage. Really, what you've got is a bonus room.
0:06:25 > 0:06:31The guide price for this residential and commercial property was £100,000.
0:06:34 > 0:06:39I asked a local estate agent to give me some background on it.
0:06:41 > 0:06:47'The rentals achieved on the property were, for the flat, round about £550 per calendar month.
0:06:47 > 0:06:51'And for the ground floor shop, £4,500 a year. Once it has been'
0:06:51 > 0:06:58renovated, you might get a touch more and achieve closer to £575 per calendar month
0:06:58 > 0:07:04or £600 per calendar month. The ground floor shop, it will probably not make much difference.
0:07:06 > 0:07:08'And the sale value?'
0:07:08 > 0:07:15On the commercial shop downstairs, I would expect to achieve in the region of £50,000-£60,000.
0:07:15 > 0:07:20For the flat upstairs, I would expect, once renovated, in the region of £110,000.
0:07:22 > 0:07:27In today's difficult economic climate, it may be tricky finding a tenant for this shop.
0:07:27 > 0:07:32There are a few empty units along the high street.
0:07:32 > 0:07:39There's also that crack to think about. So who was brave enough to bid for this one? Let's find out.
0:07:41 > 0:07:46Start me at the guide price. £100,000. 80, then. At £80,000.
0:07:46 > 0:07:53I'm selling at £80,000. 82. At 82,000. Against you in the middle at 84.
0:07:53 > 0:07:5586. 88. 90, may I say?
0:07:55 > 0:08:01At £88,000. Still cheap. I'll take 9 if you like. 89.
0:08:01 > 0:08:0490? 90. 91, sir?
0:08:04 > 0:08:0791, OK. £91,000.
0:08:07 > 0:08:11It's against you at the back again. It's going to be sold.
0:08:11 > 0:08:16£91,000 for the first time. £91,000 for the second time.
0:08:16 > 0:08:19Sat down. 91, third and last time.
0:08:20 > 0:08:25With a successful bid of £91,000, the buyers were Steven and Rachel.
0:08:29 > 0:08:3430-year-old Steven is a graphic designer and 23-year-old Rachel works in finance.
0:08:36 > 0:08:38Guys, congratulations.
0:08:38 > 0:08:41- Thank you.- £91,000!- I know.
0:08:41 > 0:08:46- Guide price 100. You did very well, didn't you?- Really good.
0:08:46 > 0:08:50We thought it would go for a lot more. Really pleased.
0:08:50 > 0:08:54- What was your upper limit? - Mine was different to Rachel's.
0:08:54 > 0:09:01- Mine was £115,000. Rachel's was a little bit more.- A little more. - So how much would you have paid?
0:09:01 > 0:09:06I don't know if Steve would let me go much further. That's why he bid.
0:09:09 > 0:09:13'There can be many unforeseen challenges when renovating,
0:09:13 > 0:09:19'but this couple have previously bought and renovated a listed building as their home.'
0:09:21 > 0:09:27We bought an old telephone exchange about three years ago. We've built an extension on that.
0:09:27 > 0:09:32And there was enough equity to remortgage and pay for this.
0:09:32 > 0:09:36- So where did you buy this old telephone exchange?- At auction.
0:09:36 > 0:09:41We actually got it for £60,000, but we didn't have planning permission.
0:09:41 > 0:09:47- That's why it went so cheap. So... - And because of that you have some money left over
0:09:47 > 0:09:52- to invest in this.- Yeah. - What are you going to do with this shop and flat?
0:09:52 > 0:09:57The priority is to get the flat up to scratch, do the kitchen, let it out.
0:09:57 > 0:10:03- Once we've got it let out, we'll decide about the shop. - So there's no business in mind?
0:10:03 > 0:10:09I've always wanted to have a shop and one weekend my dad looked in the paper, saw this shop,
0:10:09 > 0:10:13and said, "Do you fancy buying that?" And I said, "Yeah, cool!"
0:10:13 > 0:10:19Then I thought, "We will go and have a look at it." Then, "We'll go to the auction."
0:10:19 > 0:10:25- Now I've got the shop I always wanted!- So what have you always dreamed of?
0:10:25 > 0:10:32I've always wanted... Like every young girl I like shopping and would like a clothes shop,
0:10:32 > 0:10:39but I've got to think a bit practical now whether we maybe delay that, have people rent it,
0:10:39 > 0:10:43or whether I can afford to jump straight in. We'll see.
0:10:48 > 0:10:52'This investment could be Rachel's dream come true.
0:10:52 > 0:10:58'Let's hope the structural damage doesn't turn her dream into a nightmare.'
0:10:58 > 0:11:05- How much research did you do into this building?- We managed to get hold of the structural survey,
0:11:05 > 0:11:10which seemed all OK. There's been movement over the years,
0:11:10 > 0:11:16- but it's from quite a few years ago. So that's about it, really. - The most we could do in the time.
0:11:16 > 0:11:20- We had three days to do any research. - And we were working.
0:11:20 > 0:11:26We didn't look at it until the day before the auction, so we didn't have a lot of time.
0:11:26 > 0:11:30- How much are you planning on spending inside?- How much?
0:11:30 > 0:11:36I think we're looking at a budget of about £10,000 to actually get it up and get it let out.
0:11:36 > 0:11:41That's really on the flat itself. The shop we'll worry about after.
0:11:41 > 0:11:47- Guys, I'm so excited for you both. Well done.- Thank you. - Congratulations.- Thank you.
0:11:48 > 0:11:55This is Rachel and Steven's first investment property and it could mark a complete change of career,
0:11:55 > 0:11:59with the opportunity to open a clothes shop for Rachel.
0:11:59 > 0:12:04So when we come back, will Rachel have taken the plunge and started her new business?
0:12:04 > 0:12:11Or will they opt to play safe and rent both properties out? Find out later in the programme.
0:12:16 > 0:12:20The wild and windswept area of Bodmin Moor,
0:12:20 > 0:12:26where tales have been told of livestock being hunted by a fierce creature,
0:12:26 > 0:12:29the Beast of Bodmin Moor!
0:12:33 > 0:12:38Luckily for me, I'm safe and sound in Upton Cross on the edge of the moor.
0:12:38 > 0:12:45The property I'm here to see is on this little housing estate built in the 1970s.
0:12:45 > 0:12:49It's a linked detached, which means linked by a garage.
0:12:49 > 0:12:56It's got a garage and parking. The guide price was £75,000. Let's see what you got for that.
0:12:58 > 0:13:02From the outside, this house appears to be in reasonable condition.
0:13:02 > 0:13:09With all this rain, I certainly hope the roof doesn't need to be repaired.
0:13:15 > 0:13:18Okey-dokey. What is on offer?
0:13:18 > 0:13:25Into an entrance hall here, stairs up to the bedrooms, very small kitchen I can see,
0:13:25 > 0:13:30but it gets better when you come in to the living room area. Open-plan. Love that.
0:13:30 > 0:13:35A little log burner. Get that checked out that it works properly.
0:13:35 > 0:13:39Then big patio doors out onto a reasonable looking garden.
0:13:39 > 0:13:42Beautiful camellia. Not a bad start.
0:13:43 > 0:13:48With a lot of work, but not so much money, this garden could be
0:13:48 > 0:13:52a real selling point for what seems a fairly standard house.
0:13:52 > 0:13:57Judging by the numerous kennels, animals were kept here previously.
0:13:57 > 0:14:02Hopefully, they were more cuddly Collies than Beasts of Bodmin.
0:14:07 > 0:14:12This open-plan stairway is very '70s, don't you know.
0:14:12 > 0:14:17Up here we've got a bathroom and loo. That's pretty good news.
0:14:17 > 0:14:19Blimey - what's that?!
0:14:19 > 0:14:23Could they be the scrapings of the Beast of Bodmin Moor?
0:14:23 > 0:14:27Arr! Probably just the paint getting a bit old.
0:14:27 > 0:14:33Actually, do you know what? That is a bit more serious. Looks like some water ingress.
0:14:33 > 0:14:38Could be the roof leaking or if there's a tank up there, water leaking from that.
0:14:38 > 0:14:43I don't know about a beast, but that's fairly beastly.
0:14:43 > 0:14:50There are also two bedrooms on this floor, both in need of redecorating.
0:14:50 > 0:14:56I'd also recommend a new bathroom. Coloured suites are sometimes tipped to come back into fashion,
0:14:56 > 0:15:01but unless you want to scare off potential buyers, stick with white.
0:15:06 > 0:15:09The guide price for this house was £75,000.
0:15:09 > 0:15:14I asked the auctioneer who sold it for his opinion.
0:15:14 > 0:15:16This house, tucked away in a close,
0:15:16 > 0:15:21is really quite pleasant. It's got a nice ratio
0:15:21 > 0:15:23of garden to a two-bedroomed house.
0:15:23 > 0:15:30So, actually, I think the major amount of value is creatable outdoors above indoors.
0:15:30 > 0:15:35It's a dog-friendly garden. It needs to be human-friendly
0:15:35 > 0:15:39with terracing and lawns and so on. It's a lot bigger than it looks.
0:15:39 > 0:15:44If renovated and rented out, how much could it earn?
0:15:45 > 0:15:50'The rental value per month is going to be in the region of £525.'
0:15:50 > 0:15:53Probably not quite £550.
0:15:55 > 0:15:58And the sale value once renovated?
0:15:58 > 0:16:06When the property is in apple pie order, the value would be in the region of £134,950,
0:16:06 > 0:16:08or thereabouts.
0:16:12 > 0:16:17So a few damp issues to sort out upstairs, but a good little property
0:16:17 > 0:16:21that for anything like the guide price is a great investment.
0:16:21 > 0:16:25Let's see who spotted it when it went under the hammer.
0:16:25 > 0:16:27So...
0:16:27 > 0:16:31three folk on the phones. Guide 75, then.
0:16:31 > 0:16:36Not going to go for less than 75. 75, good. 78. Do I see 80?
0:16:36 > 0:16:3980. And 2 somewhere here?
0:16:39 > 0:16:42Bring you into it? 80 I've got. 80 in the room.
0:16:42 > 0:16:4782. 82. 84. 84 in the room. 86.
0:16:47 > 0:16:5086, new face. Back to you, sir?
0:16:50 > 0:16:5386 is stood. 86 I've got. 88.
0:16:53 > 0:16:56At 88. 89?
0:16:56 > 0:16:5989. 89. 90.
0:17:00 > 0:17:05A half? 90 and a half, thank you. 91, got it.
0:17:05 > 0:17:07At 91, you're in, sir. At the back.
0:17:07 > 0:17:1191 and a half. 92. 92.
0:17:11 > 0:17:1692 and a half. Are you a cluster of three? You are? OK.
0:17:16 > 0:17:1892 and a half, then.
0:17:18 > 0:17:2193. At 93. Half.
0:17:21 > 0:17:23At 93... 94.
0:17:23 > 0:17:2694 and a half. 95.
0:17:26 > 0:17:3095... 95 and a half.
0:17:30 > 0:17:35Looking at the phones. 96 and a half is here. 97.
0:17:35 > 0:17:37At 97. At 97.
0:17:37 > 0:17:42At 97. At 97. 97 and a half. 97 and a half.
0:17:42 > 0:17:45Give it a good go. 97 and a half.
0:17:46 > 0:17:4998. 98 and a half. 99.
0:17:49 > 0:17:54At 99. It is a lot easier to work out the commission on 100, sir.
0:17:54 > 0:17:56You happy with that? 100 I've got.
0:17:56 > 0:17:58At one. At one I've got.
0:17:58 > 0:18:00At one for the first time.
0:18:00 > 0:18:04At one for... One and a half.
0:18:04 > 0:18:08Sorry. As you were. One and a half I've got.
0:18:08 > 0:18:11At one and a half. Once.
0:18:11 > 0:18:15At one and a half, at the back, twice. At one and a half -
0:18:15 > 0:18:18will we ever know? Last chance.
0:18:18 > 0:18:21One. At 101, first time.
0:18:21 > 0:18:26101, second time. At 101, sure and done. Now it's going to go.
0:18:26 > 0:18:29At 101 and out.
0:18:30 > 0:18:36For £101,000, Moss and his wife Ann were the successful bidders.
0:18:42 > 0:18:49Moss, a recently retired production engineer, and Ann had moved from their West Midlands home
0:18:49 > 0:18:52to the southwest to enjoy their retirement.
0:18:52 > 0:18:56- Ann, Moss, lovely to meet you both. Congratulations.- Thank you.
0:18:56 > 0:18:59Tell me why you wanted this place.
0:18:59 > 0:19:04We needed somewhere to put the cash from the house that we sold up in the West Midlands.
0:19:04 > 0:19:09- Right.- And this seemed a better place than the bank at the moment.
0:19:09 > 0:19:14- So it's an investment property. - Potentially, yes.- Or what else?
0:19:14 > 0:19:18- We move in and wait for things to move up a little.- OK.
0:19:18 > 0:19:24- So what made you move down to Cornwall?- We used to come on holiday every year, so we like it.
0:19:24 > 0:19:29The kids have left home now so it's our time.
0:19:32 > 0:19:36The couple are renting a property in Devon
0:19:36 > 0:19:42and had been attending property auctions in search of Ann's dream home.
0:19:42 > 0:19:48I promised her a period property, not much to do and a sea view.
0:19:48 > 0:19:52So I haven't scored on any of those yet!
0:19:53 > 0:19:59Right. So apart from not ticking all those boxes, what was it here that you liked?
0:19:59 > 0:20:02The valuation, to be fair. It was within our budget
0:20:02 > 0:20:07and we thought that we couldn't go too far wrong with it,
0:20:08 > 0:20:13us being virgins in doing reconstructions of houses.
0:20:13 > 0:20:18- Right. So what tempted you into this?- Watching the programme.
0:20:18 > 0:20:21- Your programme.- Oh, great.
0:20:21 > 0:20:25- Big fans since 2003.- Since we started. Wow, seven years ago.
0:20:25 > 0:20:30- Yeah.- Fantastic. So seven years on, you decided to take the leap.
0:20:30 > 0:20:34- Yes, absolutely. - What budget have you put aside?
0:20:34 > 0:20:38We've got £15,000 put on one side for it.
0:20:38 > 0:20:45- Hopefully, that will give us the sort of property people will admire. - What timescale have you got for it?
0:20:45 > 0:20:52We have to leave our rented accommodation in about two months so that's the timescale.
0:20:52 > 0:21:00- That should be all right.- I'm hoping so.- You can dedicate yourself to this full-time.- Yes, yes.
0:21:00 > 0:21:04- So what are you going to do to it? - Kitchen, bathroom,
0:21:04 > 0:21:11get the damp problem sorted out upstairs. Looks like the guttering needs attention outside.
0:21:11 > 0:21:18- Who will undertake the work? - Professionals for plumbing and electrics, someone who likes ladders
0:21:18 > 0:21:23- and the rest is mine. - Do you not like climbing ladders? - Er, no.
0:21:23 > 0:21:29But what about that garden, which was highlighted as an area that could,
0:21:29 > 0:21:35once landscaped, increase the value of their property? And, of course, that lovely camellia?
0:21:36 > 0:21:39Are you keen gardeners?
0:21:39 > 0:21:41- Ann is.- Yeah, I'll go in there.
0:21:41 > 0:21:46- You've got a lovely camellia. - I think the camellia might be going.
0:21:46 > 0:21:47No!
0:21:47 > 0:21:54- Well, it's just a little close to the house.- They don't cause problems.- I'll take your advice.
0:21:54 > 0:21:58- It's beautiful! Why chop that down?! - We'll try to replant it.
0:21:58 > 0:22:02You might be able to. Good luck with your new life and new home.
0:22:02 > 0:22:07- I'm glad that we inspired you. - Thank you.- Thank you.
0:22:10 > 0:22:15It's all change for Moss and Ann in their new Cornish home.
0:22:15 > 0:22:19Will they manage to get it completed in that two and a half months?
0:22:19 > 0:22:24And will the camellia bush survive? Find out later in the show.
0:22:25 > 0:22:32Still to come: I'm all for open-plan living, but in this London terrace...
0:22:32 > 0:22:35I'm not sure if it's too big or not!
0:22:36 > 0:22:41And I fear the worst for my favourite feature at this Cornwall house.
0:22:41 > 0:22:44It ended up in our fire.
0:22:44 > 0:22:49But first we return to Wiltshire to see if Steven and Rachel combined working full-time
0:22:49 > 0:22:52with renovating this property.
0:22:52 > 0:22:58It's a big challenge. A lot of hard work, a lot of late nights.
0:23:00 > 0:23:06It was a cold and frosty morning when we last visited this property in Warminster, Wiltshire.
0:23:08 > 0:23:14It was a commercial unit with a three-bedroomed flat above, spread over three floors.
0:23:14 > 0:23:19Historic subsidence had caused rather odd, curious angles.
0:23:21 > 0:23:26One of the bedrooms was this quirky attic conversion.
0:23:27 > 0:23:31The property was purchased for £91,000
0:23:31 > 0:23:35by graphic designer Steven and Rachel, who works in finance.
0:23:35 > 0:23:40For her, it could be a dream come true.
0:23:40 > 0:23:46I've always sort of wanted... Like every young girl, I like shopping, so having a clothes shop.
0:23:47 > 0:23:52So has Rachel's passion for fashion materialised in her own shop?
0:23:54 > 0:24:00# We are living in a material world And I am a material girl... #
0:24:00 > 0:24:07We're back after six months to see if Rachel's dreams have become reality or she took a reality check.
0:24:07 > 0:24:11# A material...a material
0:24:11 > 0:24:15# Girl Living in a material world... #
0:24:15 > 0:24:19Practicality took precedence over passion.
0:24:19 > 0:24:26The shop, even though a couple of weeks from completion, has been let to a tattoo parlour.
0:24:26 > 0:24:30I still hope one day to have something. It would have been ideal,
0:24:30 > 0:24:37but to get people in and get the rent, we've been practical. But I still have hopes for the future.
0:24:37 > 0:24:41We've spent quite a lot of time doing the shop.
0:24:41 > 0:24:45They've done a lot of the work themselves to help us out.
0:24:45 > 0:24:49We've really concentrated on the flat for the last few months.
0:24:49 > 0:24:53Hopefully, the tenants in the shop will be in in a couple of weeks.
0:24:53 > 0:24:58Let's find out what's been happening in the flat.
0:24:58 > 0:25:02The once-shabby kitchen has been given a much-needed makeover.
0:25:02 > 0:25:07# Totally make me over! Make me over
0:25:07 > 0:25:13# I wanna be made over I wanna be made over... #
0:25:13 > 0:25:15We've completely redone the kitchen.
0:25:15 > 0:25:22We've gone for both sides, rather than just one before. Black gloss, classy-looking, modern.
0:25:22 > 0:25:27We could have gone for a cheaper one, but we wanted the look right.
0:25:27 > 0:25:32Something I would like to live with. We had to completely redo it.
0:25:32 > 0:25:36Floor's new. It really complemented the units and that.
0:25:36 > 0:25:43Really happy with the kitchen. It'll be the main room of the house, somewhere to prepare a nice meal.
0:25:51 > 0:25:54The kitchen is now stylish and chic.
0:25:54 > 0:25:59Let's take a look at the living room. The off-putting green colour has been replaced
0:25:59 > 0:26:02by warm and welcoming colours.
0:26:05 > 0:26:12Despite this youthful makeover, this 100-year-old property still reveals the odd wrinkle.
0:26:12 > 0:26:16Onwards and upwards to the second floor.
0:26:16 > 0:26:21The once drab and dingy master bedroom is now light and bright.
0:26:22 > 0:26:28But the main worry was always the second bedroom, which was riddled with damp.
0:26:33 > 0:26:40We've done a lot of work in this room. Originally, there was a lot of damp coming from this wall.
0:26:40 > 0:26:44We thought the problem was the external wall, but it wasn't.
0:26:44 > 0:26:48It was coming in from the roof. A lot got spent on that.
0:26:48 > 0:26:54But in this room we've replastered completely. The beam's higher, so I can walk under it.
0:26:54 > 0:27:00We've recarpeted, repainted. It's just a brand new room, so we're very happy with this room.
0:27:00 > 0:27:06The roof repairs meant the couple's £10,000 budget had to be revised rapidly.
0:27:07 > 0:27:12We've gone over the £10,000. We're probably up to £15,000.
0:27:12 > 0:27:16We've still got some to spend, so it's been quite tight.
0:27:16 > 0:27:23Obviously, the roof was the major problem area. It cost around £5,000 just to sort that out.
0:27:23 > 0:27:27It's been doable. It's just been hard work.
0:27:27 > 0:27:32But we scraped it together, so we should be able to finish off just fine.
0:27:32 > 0:27:36The attic conversion certainly had character.
0:27:39 > 0:27:46Steven and Rachel added a second window, bringing natural light into the kooky, but cosy corners.
0:27:50 > 0:27:58They have removed the skylight and expect to complete the work in here in three weeks,
0:27:58 > 0:28:02putting them six months behind schedule.
0:28:03 > 0:28:09It has been hard trying to find the time to do this. Both of us work full-time.
0:28:09 > 0:28:16Steve's dad's had the most input. It wouldn't have been possible without him, so big thanks there.
0:28:16 > 0:28:22It's a lot of hard work, a lot of late nights. We've been quite tired, but all worthwhile.
0:28:24 > 0:28:32We invited two local estate agents to give us their opinion on Rachel and Steven's hard work.
0:28:32 > 0:28:36I'm very impressed with what they've done. It's not dramatic,
0:28:36 > 0:28:41but it's very nice, very clean and they've done everything I'd expect.
0:28:41 > 0:28:45It's very good. They've done a very nice job, particularly the kitchen.
0:28:45 > 0:28:50The top floor is particularly nice. It's got lots of character.
0:28:52 > 0:28:57Rachel and Steven will have spent around £20,000 when they finish the renovation,
0:28:57 > 0:29:02making their total outlay approximately 110 grand.
0:29:02 > 0:29:06The shop is already being rented out for £550 per calendar month,
0:29:06 > 0:29:12which the estate agents agree is a good income. What could the flat be rented out for?
0:29:12 > 0:29:15For the flat upstairs,
0:29:15 > 0:29:19I'd expect to achieve a rental in the region of £550 per calendar month.
0:29:19 > 0:29:25If you were letting the flat, I would recommend an asking price around £450 per calendar month.
0:29:27 > 0:29:34Those figures, along with the rent for the shop, would give them an impressive 11-12% yield.
0:29:34 > 0:29:39What would the sell-on valuations be?
0:29:39 > 0:29:45On the shop, I'd expect to get more than £60,000, probably not much more than £70,000.
0:29:45 > 0:29:50For the flat, I'd expect to achieve somewhere between £115,000 and £125,000.
0:29:52 > 0:29:58That's a combined value of £175,000-£195,000, if sold separately,
0:29:58 > 0:30:02but what if the property was marketed as a whole?
0:30:02 > 0:30:07We have a real problem with the sale of flats over shops presently.
0:30:07 > 0:30:15Mortgages are almost impossible to get. I would suggest to quote an asking price of £130,000.
0:30:15 > 0:30:17Quite a difference in valuations.
0:30:17 > 0:30:24Those figures mean the couple could make a pre-tax profit of between £20,000 and £85,000.
0:30:24 > 0:30:30Even if it's only worth the lower amount, and I'm hoping it's worth more towards the higher one,
0:30:30 > 0:30:35the fact we'd be renting it and getting an income for a few years,
0:30:35 > 0:30:41- it's been well worthwhile doing. - What's the future for Rachel's fashion boutique?
0:30:42 > 0:30:46Well, you know, never say never. I'm working full-time at the moment,
0:30:46 > 0:30:50but it's still a little pipe dream. I've not closed the door on it yet.
0:30:50 > 0:30:54# We're living in a material world. #
0:31:00 > 0:31:05Tooting in southwest London is undergoing regeneration,
0:31:05 > 0:31:09which is encouraging an influx of new shops and residents to the area.
0:31:09 > 0:31:13You could say Tooting is tooting its own horn.
0:31:14 > 0:31:18The property I'm here to see is this white, three-bedroomed terrace.
0:31:20 > 0:31:27It had an auction guide price of £250,000. In 2007, before the downturn in property values,
0:31:27 > 0:31:32a similar house on this street sold for 330 grand.
0:31:35 > 0:31:40This one's near one of London's largest hospitals
0:31:40 > 0:31:43and staff based there are a very useful resource for rentals.
0:31:46 > 0:31:52The first thing that hits me when I walk in here is how spacious it is!
0:31:52 > 0:31:55Think about it. This is a Victorian villa.
0:31:55 > 0:32:00I'd expect a wall here, a bit of a dark space, a room here,
0:32:00 > 0:32:05a wall going off here, but somebody's taken the time to really open this place up.
0:32:05 > 0:32:09You've got a big arch, an archway leading to the stairs,
0:32:09 > 0:32:16some nice wooden flooring. I'm not sure if I'd think about putting one of these rooms back
0:32:16 > 0:32:21because this is a huge space. I'm just not sure whether it's too big or not.
0:32:21 > 0:32:24Let's have a look through here.
0:32:24 > 0:32:27Well, what a great surprise.
0:32:27 > 0:32:33Again, you've got an incredible space in here, but something that does make me laugh a bit
0:32:33 > 0:32:35is the mock Tudor beams.
0:32:35 > 0:32:40What I think has happened is this one here is boxing in an RSJ
0:32:40 > 0:32:46and they've taken a bit of inspiration from that and decided to go a bit haywire.
0:32:46 > 0:32:53It's lots of different eras. You've got green '80s tiles, mixed with quite modern units.
0:32:53 > 0:32:59It kind of clashes a bit and it's not really working, so this kitchen needs an overhaul,
0:32:59 > 0:33:04but the space is good, the light is good, so it could work well
0:33:04 > 0:33:08but with a bit of time and money spent on it.
0:33:08 > 0:33:14The clash of styles isn't working. How should we solve this kitchen crisis?
0:33:15 > 0:33:19# Rip it up and start again
0:33:21 > 0:33:24# Rip it up and start again... #
0:33:26 > 0:33:33And when you've finished ripping up the kitchen, it's time to start clearing up the garden
0:33:33 > 0:33:35or head on up top.
0:33:35 > 0:33:41I think we've established this house feels spacious, there's loads of natural light.
0:33:41 > 0:33:47Even up there - look. There's a skylight with natural daylight. I love to see that.
0:33:47 > 0:33:54And on the half landing we've got the bathroom with tongue and groove woodwork. A few issues to address,
0:33:54 > 0:33:57but it is a very good size.
0:33:57 > 0:34:03And then up here we've got three bedrooms. Now, two really good-sized doubles
0:34:03 > 0:34:08and a very, very small single. This is how small it is, look.
0:34:08 > 0:34:14I can almost touch the walls. Now you could get rid of these and open this space up.
0:34:14 > 0:34:19Do we want three bedrooms here? Well, the answer is, I think, yes.
0:34:19 > 0:34:23It's great letting potential, a hospital just up the road,
0:34:23 > 0:34:28fantastic to let to doctors and nurses. It offers another bedroom.
0:34:28 > 0:34:32So I think this property ticks all the boxes.
0:34:34 > 0:34:39With this property, I've got my eye on the rental returns.
0:34:39 > 0:34:45Even a small bedroom like this in the right market will rent for the right price.
0:34:49 > 0:34:55The master bedroom has similar fitted wardrobes. I'd remove them and go for a clean, bright finish.
0:34:55 > 0:35:00The dated dark wood design continues in the second bedroom.
0:35:00 > 0:35:03The guide price for this property was £250,000.
0:35:05 > 0:35:10I asked a local estate agent to give us the lowdown on this area.
0:35:10 > 0:35:14Tooting's a fabulous area. Tooting High Street
0:35:14 > 0:35:17is very good for restaurants.
0:35:17 > 0:35:20It's very popular for value for money.
0:35:20 > 0:35:25We're seeing a lot of families coming in to the Tooting area.
0:35:25 > 0:35:29It's good for buying and selling because of the hospital.
0:35:31 > 0:35:35When renovated, what could the market value be?
0:35:36 > 0:35:42'Similar properties to this in the local area, you're looking at an asking price
0:35:42 > 0:35:46'of £340,000-£350,000. Realistically speaking,'
0:35:46 > 0:35:52the prices to achieve on something like this will be around about £320,000-£330,000.
0:35:52 > 0:35:55Obviously it's going to depend on the finish of the property.
0:35:55 > 0:35:58And if the house was rented out?
0:35:58 > 0:36:04Something like this, you'd be looking around about £1,200-£1,300 per calendar month.
0:36:05 > 0:36:12The third bedroom is on the small side, but the rental market is extremely strong here.
0:36:14 > 0:36:20It's going to need a bit of work, but once complete, this is a fantastic investment opportunity
0:36:20 > 0:36:24IF you get it for the right price. Let's find out who wanted it.
0:36:25 > 0:36:29Who'd like to start on this? I don't know...300?
0:36:29 > 0:36:31300?
0:36:31 > 0:36:34Start the other way. 250, then.
0:36:34 > 0:36:39250. 255 with another lady. 260.
0:36:39 > 0:36:42265? 265.
0:36:42 > 0:36:44270.
0:36:44 > 0:36:46275. 280.
0:36:47 > 0:36:50285. 290?
0:36:50 > 0:36:52290? Anywhere else?
0:36:52 > 0:36:5528... 290? Yeah?
0:36:55 > 0:36:57300. 301?
0:36:58 > 0:37:02301. 302, sir?
0:37:02 > 0:37:04305. 306?
0:37:06 > 0:37:09305, first time.
0:37:09 > 0:37:14Second time. Third and last time. All done? Sold.
0:37:14 > 0:37:16305. Well bid.
0:37:16 > 0:37:21With his successful bid of £305,000, it was John who bought it.
0:37:23 > 0:37:27He paid a whopping 55 grand over the guide price.
0:37:27 > 0:37:32He works in marketing, but has recently tried property developing.
0:37:32 > 0:37:36This will be his second investment purchase.
0:37:39 > 0:37:41John, congratulations.
0:37:41 > 0:37:46- Well done.- Nice to meet you. - How was the auction for you? - Panic, panic.
0:37:46 > 0:37:50- Why?- Because I didn't really plan to buy this one. I had seen it.
0:37:50 > 0:37:57But I saw a few that day and I went to go for a flat, actually.
0:37:57 > 0:38:04- Yeah.- And I didn't get it. So panic set in. I'd been to auctions before and was always second bidder.
0:38:04 > 0:38:09So I'd missed out on a couple and I thought, "I've got to buy something!"
0:38:09 > 0:38:14- So, kind of, here I am.- How are you going to learn to control yourself
0:38:14 > 0:38:20- in terms of going to auctions? - I've learned!- Spending your money, overspending...!
0:38:20 > 0:38:26- What are you playing at? - I did one auction property before and I kind of got it right,
0:38:26 > 0:38:32- so I got a bit full of myself. - Did you?- I was overly confident! Tooting's not in my comfort zone.
0:38:32 > 0:38:38I didn't know the area that well. I did a bit of research, but the roads vary
0:38:38 > 0:38:42from road to road. If I'd bought round the corner, I'd be quids in.
0:38:42 > 0:38:48But because I'm on this road, a main road by a junction, it hasn't got the value of round the corner.
0:38:48 > 0:38:52So I did some research, but I've got to do more next time.
0:38:52 > 0:38:57And learn from it. It's a bit of a painful mistake,
0:38:57 > 0:39:03- but I won't do it again!- So when you first looked at this property, what did you like about it?
0:39:03 > 0:39:07Not a lot, to be honest. If I'm really honest, I didn't.
0:39:07 > 0:39:10It's OK. Location, actually.
0:39:10 > 0:39:14It's right next to a hospital, so for letting it's a winner.
0:39:14 > 0:39:20My immediate thing was to do it up and flip it, but I don't think I'll get anything out of that,
0:39:20 > 0:39:23so it's long term.
0:39:23 > 0:39:30Flipping this property, meaning doing it up quickly and selling on, won't make John much profit,
0:39:30 > 0:39:34bearing in mind the cost of renovations and his £305,000 price.
0:39:34 > 0:39:39That means the cupboard is almost bare in terms of paying for work.
0:39:41 > 0:39:48- So what sort of budget have you got to spend on this?- Well, I haven't got any budget now! I've blown it.
0:39:48 > 0:39:54I really don't want to spend much over £10,000. There's no real structural work.
0:39:54 > 0:39:59Just new kitchen, new bathroom and partition walls.
0:39:59 > 0:40:04And then a good paint, skimming the walls. And we'll take it from there.
0:40:04 > 0:40:10- What about that nice pink wall at the front?- I think I might paint the whole house pink.
0:40:10 > 0:40:17- Stop it! What colour can we expect this house to be painted? - It'll just be neutral colours.
0:40:17 > 0:40:21- Rebuild that wall.- And are you going to be doing this work?- God, no.
0:40:21 > 0:40:26I've got a good set of builders. They can turn a place over for me.
0:40:26 > 0:40:33I'm happy to demolish. I like that bit, but don't get me doing anything crafty. It's not going to work.
0:40:33 > 0:40:36It's going to look hideous.
0:40:36 > 0:40:41They're really busy guys as well. We're going to schedule when they can start work.
0:40:41 > 0:40:46I'm hoping as soon as next week. They'll start cracking the whip.
0:40:46 > 0:40:52Hopefully, they'll turn it round within a matter of weeks.
0:40:53 > 0:40:57John's right to get this onto the rental market as soon as possible,
0:40:57 > 0:41:01turning it from money pit to money maker.
0:41:01 > 0:41:07He'll need to keep that positive attitude if he's going to turn it around on schedule.
0:41:07 > 0:41:10# We've got to stay positive
0:41:13 > 0:41:15# We gotta stay positive... #
0:41:15 > 0:41:23- I want to see you make a success of this.- Thank you.- And I'm desperate to see it with these beams down!
0:41:23 > 0:41:27Give this house a personality. It's a mish-mash.
0:41:27 > 0:41:31- It's been lovely meeting you. - And you.- And good luck. Well done.
0:41:33 > 0:41:38Poor old John. Auction fever certainly got the better of him
0:41:38 > 0:41:42and he paid well over the odds. It's a lesson to you all -
0:41:42 > 0:41:46sticking to budgets is crucial if you want to succeed at this.
0:41:46 > 0:41:51The big question now is will he stick to his £10,000 budget?
0:41:51 > 0:41:54And will this wall remain pink?
0:41:54 > 0:41:58You can find out how John gets on later on in the programme.
0:42:01 > 0:42:05Buying your property for the right price is the first step to success.
0:42:05 > 0:42:11But the next step is just as important - sticking to timescales and budgets is the only way
0:42:11 > 0:42:16- to a decent profit.- Let's see how our purchasers are progressing.
0:42:16 > 0:42:19Let's head back to Cornwall
0:42:19 > 0:42:26where, on a wet and windy day, I met recently-retired production engineer Moss and his wife Ann.
0:42:26 > 0:42:31The couple had moved to the southwest from the Midlands
0:42:31 > 0:42:35and Moss had promised Ann her dream home.
0:42:35 > 0:42:38I promised her a period property,
0:42:39 > 0:42:41not much to do and a sea view.
0:42:41 > 0:42:45So I haven't scored on any of those yet!
0:42:50 > 0:42:57So the purchase of this 1970s, two-bedroomed house for £101,000
0:42:57 > 0:42:59wasn't quite what Ann had in mind.
0:42:59 > 0:43:03But it would allow Moss to try his hand at house renovation
0:43:03 > 0:43:08to see if a new career in property development beckoned.
0:43:09 > 0:43:11Six months later, we're back.
0:43:15 > 0:43:19The weather has brightened up and so has the exterior of the house.
0:43:19 > 0:43:23Let's take a look at the interior.
0:43:26 > 0:43:32The kitchen has been transformed with the '70s style banished forever.
0:43:32 > 0:43:38There are still a couple of finishing touches to do, but the work looks top quality so far.
0:43:38 > 0:43:43Once the plumber had plumbed us in, I put the units together
0:43:43 > 0:43:49and worktops and whatever else. We're now in the process of tiling and painting.
0:43:50 > 0:43:55Their living area is very much still a work in progress
0:43:55 > 0:43:59as Moss has been using it as a workroom.
0:43:59 > 0:44:05He has installed a new wood burner, which adds some real rural charm to this modern house.
0:44:06 > 0:44:10When we came, I tried to light a fire in the existing wood burner
0:44:10 > 0:44:17and soon found that the top was cracked. So after clearing the smoke from the living room,
0:44:17 > 0:44:21we decided we'd replace the wood burner itself.
0:44:21 > 0:44:28The people replacing it for us said that the stack was not, in fact, up to the present specification.
0:44:29 > 0:44:34So we had to replace the stack and the wood burner in one go.
0:44:35 > 0:44:40The cluttered garden has been cleared, revealing its true size.
0:44:43 > 0:44:47This type of house is fairly standard for this area,
0:44:47 > 0:44:52but the garden has blossomed into a distinguishing feature.
0:44:52 > 0:44:56We had loads of trees chopped down. Somebody came to do them
0:44:56 > 0:45:01and we did the rest ourselves. We chopped lots of stuff down.
0:45:01 > 0:45:06- Still needs plenty of work, though. That's your job.- My job.
0:45:09 > 0:45:13And what about that beautiful camelliaI was so fond of?
0:45:13 > 0:45:18That was one of the first things that was taken away.
0:45:18 > 0:45:20I think it ended up in our fire.
0:45:20 > 0:45:22# Oh, Camellia
0:45:22 > 0:45:25# Won't you take me away... #
0:45:27 > 0:45:30Oh, Moss! How could you?
0:45:31 > 0:45:33Anyway, let's take a look upstairs.
0:45:41 > 0:45:45The bedrooms have been redecorated in warm, cosy colours.
0:45:45 > 0:45:49The couple have replaced the doors and hung feature wallpaper.
0:45:56 > 0:46:02The bedrooms were riddled with damp, a problem trickier to solve than first thought.
0:46:03 > 0:46:09Effectively, we've had to replace whole walls just to get rid of the damp.
0:46:09 > 0:46:14We're still suffering with some damp. We replaced the ceilings.
0:46:14 > 0:46:18All of the ceilings. New plasterboard plastered over.
0:46:18 > 0:46:21We've struggled along, haven't we?
0:46:24 > 0:46:29In the bathroom, Moss has removed the multi-coloured bathroom suite
0:46:29 > 0:46:34and replaced it with a modern P-shaped bath and matching sink and toilet.
0:46:34 > 0:46:40There's still a lot of work to do, but the couple have recently moved from their rented accommodation
0:46:40 > 0:46:43and into their new property.
0:46:44 > 0:46:49They hope living and working here will speed up the renovation.
0:46:50 > 0:46:52We've been in the property six weeks.
0:46:52 > 0:46:57Prior to that, I was travelling on a daily basis
0:46:57 > 0:47:01from Devon, which is a 140-mile round trip.
0:47:01 > 0:47:06- So that was tiring us out, wasn't it?- Yeah.
0:47:06 > 0:47:10- You camped a few times.- Yes, I did. - I wouldn't camp!
0:47:11 > 0:47:16Their original two and a half month schedule has long since passed.
0:47:16 > 0:47:21But have they kept to their £15,000 budget?
0:47:23 > 0:47:26We've overspent now by about £3,000,
0:47:26 > 0:47:32but I think we've got everything in place. We haven't got to spend any more,
0:47:32 > 0:47:34other than carpeting the lounge.
0:47:34 > 0:47:40So, you know, if we're £3,500 or £4,000 over the top,
0:47:40 > 0:47:44that wouldn't worry me unduly.
0:47:47 > 0:47:51Moss and Ann's projected total outlay on this house is £120,000.
0:47:53 > 0:47:58We asked two local property experts for their opinion.
0:47:58 > 0:48:01The biggest selling point
0:48:01 > 0:48:05for the house, without a shadow of a doubt, is the garden.
0:48:05 > 0:48:11It's really bug, quite mature, lots of trees and things for nooks and crannies.
0:48:11 > 0:48:17As you approach from the front, it looks like it could be just an ordinary house in a close,
0:48:17 > 0:48:19but it's far from it.
0:48:19 > 0:48:23The rear garden is a good asset. It's a nice size,
0:48:23 > 0:48:29it's fairly level, flat. It's obviously safe if you have children, it's quite secure.
0:48:31 > 0:48:36What do the experts believe this property could achieve if rented out?
0:48:36 > 0:48:42Rental, per calendar month, is going to push on towards £600, but probably not quite.
0:48:42 > 0:48:48A rental figure for a property such as this would be in the region of around £550 per calendar month.
0:48:49 > 0:48:56And the sell on value, bearing in mind Moss and Ann's total outlay of £120,000?
0:48:56 > 0:49:02The value of the property when it is in absolutely apple pie order would be in the region of £140,000.
0:49:02 > 0:49:08The resale value of the property once completed will be in the region of £140,000-£145,000.
0:49:09 > 0:49:11- Cor!- Gosh.
0:49:11 > 0:49:15- That's a lot more than we thought. - That's great news, yeah.
0:49:15 > 0:49:21- That's good.- The whole idea was for us not to lose money, but if we can make a bit, even better.
0:49:22 > 0:49:27So what's the plan for Moss's property developing future?
0:49:27 > 0:49:34- And will Ann forget her period property by the sea? - We'll live here for 2 or 3 years,
0:49:34 > 0:49:38but try to find somewhere, maybe at auction again.
0:49:38 > 0:49:42- It would be nice to get the house that you deserve, dear.- Yeah.- Yes.
0:49:42 > 0:49:44Yes.
0:49:51 > 0:49:57Let's return to Tooting in London where I met John who works in marketing.
0:49:58 > 0:50:04He had aspirations to be a full-time property developer and purchased this three-bedroom terrace
0:50:04 > 0:50:09initially hoping to do it up quickly and sell on.
0:50:12 > 0:50:18John's high purchase price of £305,000 left only the narrowest of margins to turn a profit.
0:50:18 > 0:50:23Why did this would-be developer pay so much?
0:50:23 > 0:50:27- So how was the auction for you? - Panic set in!
0:50:27 > 0:50:32I'd been to a couple of auctions and missed out on a couple.
0:50:32 > 0:50:38I got to the point, "I've got to buy something!" So here I am, here we are.
0:50:50 > 0:50:55Nearby St George's Hospital is one of London's largest,
0:50:55 > 0:51:02so a ready-made market for tenants. The property had three bedrooms - two doubles and a very small single.
0:51:02 > 0:51:05There's also a good-sized bathroom.
0:51:06 > 0:51:10And downstairs there's a large, open-plan, living/dining area
0:51:10 > 0:51:15and, of course, that lovely mock Tudor kitchen!
0:51:15 > 0:51:18Three months later, we came back.
0:51:23 > 0:51:29The front wall has been rebuilt and is thankfully no longer pink!
0:51:29 > 0:51:35Like the rest of the exterior, it's been brightened up with a new coat of white paint.
0:51:36 > 0:51:39The mock Tudor kitchen is no more.
0:51:39 > 0:51:44John has replaced the dated decor with clean, crisp, white units and tiles.
0:51:48 > 0:51:52The open-plan living area has been divided back into two rooms.
0:51:52 > 0:51:59The room at the rear will now be a communal living/ dining room leading into the new kitchen.
0:51:59 > 0:52:05What we've done, we've opened up this area, this slightly wider doorway.
0:52:05 > 0:52:09It lets some more light in, back into this room here.
0:52:09 > 0:52:14We've got an L-shaped kitchen here, glossy white to reflect the light as much as possible.
0:52:14 > 0:52:19And we've got a roof light to let in some extra light to flood back in.
0:52:19 > 0:52:25And we've opened up the space here. There was an old serving hatch that's now a doorway
0:52:25 > 0:52:29to create more sense of an open kitchen/lounge area.
0:52:34 > 0:52:40The room on the other side of the partition wall will be a bedroom.
0:52:40 > 0:52:46John is wisely maximising his rental returns. He's already let the property out to four people.
0:52:46 > 0:52:51I've got four trainee doctors going to be moving in very shortly.
0:52:51 > 0:52:55That's bang on what I wanted, so I'm really pleased.
0:52:55 > 0:53:00I'm getting £1,500 a month so that's 18 grand a year. I'm quite happy.
0:53:02 > 0:53:07John's cleaning up with rental income with his student doctors.
0:53:07 > 0:53:10Let's give upstairs a check-up.
0:53:12 > 0:53:16The three bedrooms all had floor-to-ceiling fitted wardrobes.
0:53:18 > 0:53:24John's removed them, replastered the walls and ceilings and painted each room.
0:53:24 > 0:53:28Yes, you've guessed it - it's clinical white.
0:53:28 > 0:53:32He has new bedroom furniture ready to be assembled.
0:53:32 > 0:53:36He still has plenty of work to do in the bathroom.
0:53:41 > 0:53:48What we've done with the upstairs is we've kept the same configuration of three bedrooms and one bathroom.
0:53:48 > 0:53:54We thought about moving the bathroom into this small room. It would have seemed to make sense.
0:53:54 > 0:54:00It would free up another double bedroom, but getting the services into the front - drainage, sewerage,
0:54:00 > 0:54:03plumbing - is a bit of a no go.
0:54:03 > 0:54:07John's original budget was £10,000. Has he managed to keep to that?
0:54:09 > 0:54:14I was hoping to spend 10 grand, but I didn't. I'm nearer £20,000.
0:54:14 > 0:54:20But considering we've overhauled the whole of the property, for £20,000 we've done really well.
0:54:20 > 0:54:24That includes fittings for the kitchen and me buying furniture.
0:54:26 > 0:54:32John purchased the property for £305,000 and has spent 20 grand on the renovation.
0:54:33 > 0:54:38After three months, have his alterations had any impact on the value here?
0:54:40 > 0:54:44Let's hear from two local estate agents.
0:54:44 > 0:54:46First impressions, it's good.
0:54:46 > 0:54:51However, some aspects of the work could be better, the finishing.
0:54:51 > 0:54:55However, for the rental purpose, the finish is fine.
0:54:55 > 0:54:59The open plan kitchen/diner works very well.
0:54:59 > 0:55:03Accommodation such as this needs an area for everybody
0:55:03 > 0:55:07to come into and use as a communal part. It works very, very well.
0:55:10 > 0:55:17The estate agents agree that John's getting the going rate with his rental income of £1,500 per month,
0:55:17 > 0:55:23but if he were to sell, bearing in mind his total outlay of £325,000,
0:55:23 > 0:55:25what could this place achieve?
0:55:29 > 0:55:35If this property was up for sale, in my opinion, it would be valued from £360,000-£380,000.
0:55:35 > 0:55:42If I put the property on the market today, I'd be expecting approximately £350,000-£360,000.
0:55:42 > 0:55:45That's good to hear. It really is.
0:55:45 > 0:55:51I was thinking if I wanted to make a quick sale and get out, I'd think 350.
0:55:51 > 0:55:55If I want to hang on and test the market for a bit, I'd push it,
0:55:55 > 0:56:02but I think that makes me realise that I've done OK and if I sit on it for two years, maybe it'll be better.
0:56:02 > 0:56:04So that's really good news.
0:56:07 > 0:56:13When John initially bought this house, he feared his career as a property developer
0:56:13 > 0:56:20was in a critical condition, but his hard work has brought it back to life. What has he learned?
0:56:20 > 0:56:24Just relax about it. No point getting uptight.
0:56:24 > 0:56:31It's only bricks and mortar. So I think, yeah, great. Let's crack on with the next one.
0:56:33 > 0:56:35# We gotta stay positive! #
0:56:38 > 0:56:43So has all this whetted your appetite for buying at auction?
0:56:43 > 0:56:49- If so, there will be more compelling stories for you next time. - We'll see you then.- Goodbye.
0:56:58 > 0:57:02Subtitles by Subtext for Red Bee Media Ltd - 2011
0:57:07 > 0:57:09Email subtitling@bbc.co.uk