0:00:02 > 0:00:06From cottages to flats, all sorts of properties are sold at auction.
0:00:06 > 0:00:13Whether you're a buy to let investor or looking for your first home, you might find just what you want.
0:00:36 > 0:00:42One big advantage of buying at auction is that when the gavel goes down, you have exchanged contracts.
0:00:42 > 0:00:46No chains. You bid, you buy, it's all so simple,
0:00:46 > 0:00:54- but also quite easy to get carried away.- So were today's purchases a risky gamble or a sure thing?
0:00:55 > 0:00:59In Stoke, I think I might have found a great property.
0:00:59 > 0:01:04This is a solid, well-built, well-designed, lovely house.
0:01:04 > 0:01:10This maisonette and basement conversion in Kent is in desperate need of some TLC,
0:01:10 > 0:01:14but...I'm not loving this place right now.
0:01:15 > 0:01:21And just outside Nottingham, I visit a colourful house with some smashing features - but not this.
0:01:21 > 0:01:27Whenever I see glass doors like this, I say get rid of them!
0:01:27 > 0:01:33All these properties have been sold at auction. We'll find out who bought them and how much they paid
0:01:33 > 0:01:35when they went under the hammer.
0:01:39 > 0:01:45I'm in Trentham in Staffordshire and you'll have to excuse me if I get a little bit nostalgic.
0:01:45 > 0:01:49During school summer holidays I used to come to Trentham Gardens,
0:01:49 > 0:01:53which is around here like a theme park.
0:01:53 > 0:01:57That used to be a special treat and it's where I learnt to swim.
0:01:57 > 0:02:03It's just up the road. Ah. Anyway, I'm here to see this, a fantastic looking house.
0:02:03 > 0:02:11The guide price is just 150,000 quid, which for a three-bedroom detached property is marvellous.
0:02:13 > 0:02:15So what have we got?
0:02:15 > 0:02:19Oh, straight through the front door and I'm thinking, "I like this!"
0:02:19 > 0:02:22It's early 1900s, classic design.
0:02:22 > 0:02:25Look at the floor. Great start.
0:02:25 > 0:02:30The rooms look to be in reasonable condition. Nice big front sitting room.
0:02:30 > 0:02:34Stairs up to the bedrooms. Kitchen...
0:02:34 > 0:02:37Well, it doesn't look too bad.
0:02:37 > 0:02:42It could do with some tarting up, but perfectly serviceable.
0:02:42 > 0:02:46And through into... a classic, lovely living room.
0:02:46 > 0:02:50Open fire, good to see again, the stripped floors are good.
0:02:50 > 0:02:56Some original features still here. And then this lovely little area goes out onto the garden.
0:02:56 > 0:03:00I'm getting a really good feeling about this house.
0:03:04 > 0:03:09Upstairs, I'm still desperately hunting for something wrong with it. I don't think I'll find it.
0:03:09 > 0:03:14It's a good size, I even like the nice landing area.
0:03:14 > 0:03:18Three good-size bedrooms. Loo and bathroom exactly where it should be.
0:03:18 > 0:03:23It needs updating, the decorating could benefit from modernisation,
0:03:23 > 0:03:29but that is small fry. This is a solid, well-built, well-designed, lovely house.
0:03:29 > 0:03:37This handsome house was built around 1910 and the previous owner had been living here since the '70s.
0:03:37 > 0:03:44It's been well looked after over the years, but is now showing signs of age.
0:03:44 > 0:03:49It's a substantial brick-built property with driveway and garage.
0:03:59 > 0:04:04There's not much at fault with the house downstairs.
0:04:04 > 0:04:10The two reception rooms are spacious and well-lit. Upstairs, though, there is room for improvement.
0:04:10 > 0:04:16One of the bedrooms is small and probably better suited for storage or a study.
0:04:19 > 0:04:23The bathroom is rather small and outdated.
0:04:23 > 0:04:30To make the best of this property, an extension will really help meet the needs of a modern family.
0:04:33 > 0:04:41Outside, and the three-sided garden is a glorious opportunity to develop either an idyllic place to relax
0:04:41 > 0:04:44or their own vegetable patch.
0:04:44 > 0:04:48In fact, there's easily room for both.
0:04:48 > 0:04:55This old wooden lean-to is well past its best and will probably need to be taken down.
0:04:56 > 0:04:59So what are the best options here.
0:04:59 > 0:05:04I asked a local estate agent's opinion.
0:05:04 > 0:05:09It's a little bit small upstairs so I think extending will give you
0:05:09 > 0:05:15a bit more room for a family. Cost-wise to extend the property and also to update the rest of it,
0:05:15 > 0:05:20you'd be looking somewhere in the region of £50,000-£55,000.
0:05:20 > 0:05:28It's got a lovely appeal. The only downfall is the lean-to from the kitchen to the garage.
0:05:28 > 0:05:30I think that lets it down a bit.
0:05:30 > 0:05:36You'd look to return, with an extension, 235 to possibly 250.
0:05:37 > 0:05:43So building an extension could give the new owner extra space and add extra value.
0:05:43 > 0:05:48What if they put the property on the rental market as it is?
0:05:49 > 0:05:55For a rental valuation, I would think somewhere in the region of around £650 per calendar month.
0:05:58 > 0:06:04Well, what is there not to like about this house? It would make an absolutely glorious family home.
0:06:04 > 0:06:09Maybe it's a bit to do with nostalgia, but I don't think so. It's a great property.
0:06:09 > 0:06:16And for 150,000 quid, let's see who was lucky enough to get this when it went to auction.
0:06:17 > 0:06:21A substantial three-bedroom detached house.
0:06:23 > 0:06:25Nice period property, this.
0:06:25 > 0:06:27125, going to say?
0:06:27 > 0:06:30Thank you. 125 I am bid.
0:06:30 > 0:06:33At £125,000.
0:06:33 > 0:06:39Is that a bid in the middle? 130 in the middle. 135 can I say?
0:06:39 > 0:06:42135 it is. At 135.
0:06:42 > 0:06:45140, is it? £140,000.
0:06:45 > 0:06:47At 140.
0:06:47 > 0:06:49Bidder here now. 147.
0:06:49 > 0:06:53At 147. 148. 148.
0:06:53 > 0:06:55149.
0:06:55 > 0:06:57150, is it?
0:06:57 > 0:07:00At 150,000. On the back row.
0:07:00 > 0:07:03151. 152.
0:07:03 > 0:07:04153?
0:07:07 > 0:07:08153.
0:07:08 > 0:07:13At £153,000. For the first time.
0:07:13 > 0:07:17At £153,000 for the second time.
0:07:17 > 0:07:21At £153,000 for the third and final time.
0:07:21 > 0:07:26No mistake. The bid is seated. At £153,000.
0:07:28 > 0:07:31You bought it, sir. Well done.
0:07:31 > 0:07:36'The house was bought for £153,000 by husband and wife Guy and Emma,
0:07:36 > 0:07:43'who are originally from Stoke. They currently live and work 45 miles away in Birmingham,
0:07:43 > 0:07:49'where Guy is a sales manager fir a water technology company and Emma's a school librarian.
0:07:49 > 0:07:53'They have two young daughters and look forward to coming home.'
0:07:53 > 0:08:00- Guy, Emma, congratulations. - Thank you.- Thank you very much. - This is a great house.- Yes, it is.
0:08:00 > 0:08:07- We're excited.- Tell me why you bought it.- Family, very close. Next door, in fact.- Next door?!
0:08:07 > 0:08:13- Extremely close!- If we look out of our spare bedroom, we see my in-laws' bedroom.
0:08:13 > 0:08:20- Right...- Which doesn't put us off too much. My sister's round the corner, then my parents.
0:08:20 > 0:08:22Oh, my goodness. Extraordinary.
0:08:22 > 0:08:29We left Stoke when we were 18. We're now a bit older, so we're returning back to our families.
0:08:29 > 0:08:33'In fact, Emma knows the property very well.
0:08:33 > 0:08:38'As a child, she used to play here with a friend who lived in it.'
0:08:38 > 0:08:42We came to look round it and thought, "We could have some fun with this."
0:08:42 > 0:08:49We've done one house before, so we move to the next project and to shatter my parents' retirement.
0:08:49 > 0:08:56We spend a lot of time back here anyway because we've got a massive extended family here.
0:08:56 > 0:09:00Tell me about you two, then. What do you do? What's your background?
0:09:00 > 0:09:05We met when I was 16 and you were 14. So childhood sweethearts.
0:09:05 > 0:09:10We stayed together and got married in the year 2000 for a millennium wedding.
0:09:10 > 0:09:14- So you've got kids of your own? - Yep.- Mm-hm.- Two girls.
0:09:14 > 0:09:19- Five and two, Skye and Maisie. - Two blonde bombshells.
0:09:19 > 0:09:26- And this is a wonderful family house.- Yes. And it will get better with the plans we have for it.
0:09:26 > 0:09:31'Emma and Guy plan to turn this house into a five-bedroom property
0:09:31 > 0:09:36'by demolishing the garage and the lean-to to extend outwards.
0:09:36 > 0:09:44'This will create an open dining and kitchen area on the ground floor and two additional bedrooms.
0:09:44 > 0:09:51'The existing kitchen will become a downstairs cloakroom and allow space for a bigger hallway.'
0:09:51 > 0:09:57So who's going to do the work? What plans do you have for budget and timescales?
0:09:57 > 0:10:03Right. We reckon we're going to plough probably £70,000-£80,000 into it, I would say.
0:10:03 > 0:10:09Lots of contacts with most of the family being in this area. We've got a few sized up already.
0:10:09 > 0:10:14- And we'll do it quickly. - Give me an idea.- In six months.
0:10:14 > 0:10:16Definitely. Sooner the better.
0:10:16 > 0:10:20- Where will you be in the meantime? - We'll be here most of the time,
0:10:20 > 0:10:25but when the knock-through happens, we might migrate...maybe next door!
0:10:25 > 0:10:27Yes, yes, just nip through the fence.
0:10:27 > 0:10:32What about the finances for it? Are there any flies in this ointment?
0:10:32 > 0:10:39- It's a very annoying story. We can't find any, but there may well be some there.- We haven't sold our house.
0:10:39 > 0:10:44Yeah, we've just had it on the market. This happened very quickly.
0:10:44 > 0:10:48- You skipped over that!- Yes! - "There is that."
0:10:48 > 0:10:52So until you sell your house, you can't really do the work.
0:10:52 > 0:10:58Not the big plans, no. We'll do the immediate things so that we can live comfortably.
0:10:58 > 0:11:01I hadn't thought of that.
0:11:01 > 0:11:07- Oh, don't let me bring you down! - No, you're right. We do need to sell the house.
0:11:07 > 0:11:12- But it will go quickly. - Congratulations. I'm delighted for you.
0:11:12 > 0:11:16I can't wait to see how you get on here.
0:11:17 > 0:11:19Ah, I love stories like this.
0:11:19 > 0:11:25Could it be more perfect? Guy and Emma know this house back to front already!
0:11:25 > 0:11:29Emma used to play here. An amazing story. Wonderful.
0:11:29 > 0:11:35And they've got a great family home. A few jobs to do and some ambitious plans with that extension
0:11:35 > 0:11:41and there is the small fact that they do have a house to sell before they can finance it,
0:11:41 > 0:11:47but how are they going to get on? You can find out later in the show.
0:11:51 > 0:11:58Today I'm in Kent in the town of Chatham, which has been pretty neglected over the years.
0:11:58 > 0:12:02Since the decline of the dockyards, it has been smartened up
0:12:02 > 0:12:06and regeneration projects are giving the area a new life.
0:12:06 > 0:12:11I'm in an area of Chatham confusingly known as Luton.
0:12:11 > 0:12:17It's five minutes from the town centre. It's not really the most desirable part of town,
0:12:17 > 0:12:23but for me the glass is half full. I'm here to see an end of terrace arranged as two flats.
0:12:23 > 0:12:27The guide is just £60,000-£65,000.
0:12:29 > 0:12:35'Yes, that's right. Two flats, not one, arranged over three floors.
0:12:35 > 0:12:40'At the front is a two-bedroom maisonette taking up the ground and first floor.
0:12:40 > 0:12:46'With its own entrance down the side street is a lower ground floor single bedroom studio flat.
0:12:46 > 0:12:53'It's got a kitchen and bathroom extension and comes with its own garden.
0:12:53 > 0:12:58'From the outside, this Victorian end of terrace is in a sorry state.
0:12:58 > 0:13:03'And its kerb appeal is zero - too much kerb, not enough appeal.'
0:13:05 > 0:13:08Oh, so inside...
0:13:08 > 0:13:11and, sadly, it's no better.
0:13:11 > 0:13:14There's just rubbish bags dumped in the corner,
0:13:14 > 0:13:21it smells a little bit, you've got an old gas fire. There's no beautiful features.
0:13:21 > 0:13:28And whatever this is... It's some sort of... Look. A bit of partitioning here
0:13:28 > 0:13:32and it goes round to here, there's half the kitchen there.
0:13:32 > 0:13:38And for some worrying reason, I think the bathroom may be on the other side of this partition.
0:13:38 > 0:13:42It's really not working. Somebody has carved it up.
0:13:42 > 0:13:48The kitchen needs stripping out. This whole place needs ripped back to the bare bone.
0:13:48 > 0:13:52One thing you really notice is the noise from the road.
0:13:52 > 0:13:56So, for me, I'm not loving this place right now.
0:13:56 > 0:14:03There are very few redeeming features. The kitchen was split down the middle to squeeze in a bathroom.
0:14:07 > 0:14:12The front room, which overlooks a very busy road, is actually quite spacious.
0:14:16 > 0:14:22Upstairs in this split-level flat and the two bedrooms are of a very decent size.
0:14:31 > 0:14:35There's even an attractive period feature lurking here and there.
0:14:40 > 0:14:46But this house needs really a lot of work to turn it around. I say house - it's two flats.
0:14:46 > 0:14:49So where's the other one?
0:14:51 > 0:14:54Outside and around the back.
0:14:55 > 0:14:59So this is the back garden. More like a dumping ground.
0:14:59 > 0:15:03Bit of a clear-up job needed here, I think.
0:15:04 > 0:15:08This doesn't make the flat very appealing.
0:15:08 > 0:15:12People have been using the open area off the street as a rubbish dump.
0:15:16 > 0:15:19And inside...
0:15:19 > 0:15:25Horrible, nasty, dark, damp, dingy. That's just a few words that spring to mind.
0:15:25 > 0:15:27Oh, dear.
0:15:27 > 0:15:32This is the sleeping area. It looks like a little cellar at the back,
0:15:32 > 0:15:36but I think that was the original coal hole.
0:15:36 > 0:15:38And the ceiling's fallen down!
0:15:38 > 0:15:42The kitchen - less said about that the better.
0:15:42 > 0:15:48This is what I would call a studio flat. You'd be hard-pushed to turn this into a one-bed.
0:15:48 > 0:15:53But actually I think you'd be hard pushed to do anything with it.
0:15:53 > 0:15:59It's going to be a challenge for anyone trying to turn this into a light, airy living space.
0:16:01 > 0:16:08So my instant reaction - turn this back into one property, open up this lower ground floor,
0:16:08 > 0:16:14get the kitchen down here, maybe even open this up into the garden. Big folding doors!
0:16:14 > 0:16:19That's a complete fantasy. Done up to a decent standard as one house,
0:16:19 > 0:16:26it wouldn't achieve much more than 100 grand and it would cost you £30,000 to do all the work needed.
0:16:26 > 0:16:30Whoever takes this one will have to keep this as two units
0:16:30 > 0:16:36and that means making that subterranean apartment and grubby maisonette a nice place to live.
0:16:36 > 0:16:38That is a pretty big job.
0:16:40 > 0:16:46Whether this is a renovation best suited for rental or a quick resale, I'm just not sure,
0:16:46 > 0:16:50but both of these properties will take a huge amount of work
0:16:50 > 0:16:57to turn them into pleasant places to live. The area around the building also needs a lot of attention.
0:16:57 > 0:17:00Two flats needing full renovation.
0:17:00 > 0:17:07Are they best rented out? Or put back on the open market? What are the options here?
0:17:07 > 0:17:12We're in Luton Road, not one of the most sought after areas in Chatham.
0:17:12 > 0:17:15It needs lots and lots of work. Big project.
0:17:15 > 0:17:22The upstairs needs to be converted into a decent-sized two-bedroom split level.
0:17:22 > 0:17:28- And the studio flat? - This flat here could be used best as a one-bedroom.
0:17:28 > 0:17:31The size of flat, it's a good size.
0:17:31 > 0:17:35If you rent the studio, you'd get 395 per calendar month.
0:17:35 > 0:17:39As a two-bedroom, you'd be looking at 495.
0:17:39 > 0:17:45Once done up, then, these flats could potentially provide a decent rental income.
0:17:45 > 0:17:48What about their resale value?
0:17:48 > 0:17:53Once they've been renovated, the studio would be in the region of £55,000.
0:17:53 > 0:17:57The two-bedroom, split-level flat would be about £70,000.
0:17:57 > 0:18:02There's money in it, but this isn't a quick refurb and a rent out.
0:18:02 > 0:18:07This property demands some real thought and whoever takes this on
0:18:07 > 0:18:13will need to put some serious effort into the place. Let's see who took this on at auction.
0:18:18 > 0:18:24Luton Road in Chatham is an end-of-terrace property. Can I see £65,000 for it?
0:18:24 > 0:18:2665,000 do I see?
0:18:26 > 0:18:30Give me 60, then. Start me. £60,000 bid I have.
0:18:30 > 0:18:33And 2 now do I see? 62?
0:18:33 > 0:18:3662. 64. 66. 68.
0:18:36 > 0:18:4068...? 68? 68 I'm bid.
0:18:40 > 0:18:4368. 70,000 I have. And 2.
0:18:43 > 0:18:4672. And 4. 74.
0:18:46 > 0:18:4874, thank you, madam. And 5.
0:18:48 > 0:18:52And 6? Going once. Make it easier for you.
0:18:52 > 0:18:5476? Definitely no?
0:18:54 > 0:18:59At £75,000, then. 76 I've got. And 7.
0:18:59 > 0:19:02And 8. 78. 78.
0:19:02 > 0:19:0678 right at the back behind you. Fill it up to 80?
0:19:06 > 0:19:11£80,000 bid I've got. And 2 now? 82 do I see?
0:19:11 > 0:19:14At £80,000, then. For the first time.
0:19:14 > 0:19:21£80,000, unless I get another bid, for the second time. Third and final time. All done at 80?
0:19:21 > 0:19:26All done? Yours, sir. Well done. You stuck with it.
0:19:26 > 0:19:31The lot sold for £80,000 - £15,000-£20,000 over guide price.
0:19:31 > 0:19:35John is the new owner. He used to run a skiing academy in Austria,
0:19:35 > 0:19:40but has now returned to the UK to be a property developer.
0:19:40 > 0:19:46He lives in the area and this is his fourth property purchase in a year.
0:19:46 > 0:19:53John, congratulations. You paid £80,000 for this. What was the auction experience like for you?
0:19:53 > 0:19:59It's OK. I've been to a few before. So I knew what to expect, but it's always exciting.
0:19:59 > 0:20:05- Did you view this property first? - Yes, yeah. It didn't put me off at all. I was OK with it.
0:20:05 > 0:20:11My next question was: where are you going to start? I mean... there's a lot going on here.
0:20:11 > 0:20:18There's a lot of work to do. But once you get rid of the rubbish, take down some of the walls,
0:20:18 > 0:20:25it can be like an open canvas. And it makes sense then. You can see what you're doing.
0:20:25 > 0:20:31- What attracted you to this property in the first place?- It was quite large, the price was right.
0:20:31 > 0:20:36It's good for rent in this area, which is what I'll do with this.
0:20:36 > 0:20:40I'll convert it to two apartments and then rent them out.
0:20:40 > 0:20:44Let's talk about this flat as it is. It's not working for me!
0:20:44 > 0:20:49- What are you going to do to improve this?- I'll take down the partition.
0:20:49 > 0:20:54I'm going to change the bathroom, the way it is down here.
0:20:54 > 0:21:01Under the stairs, I'll utilise that space. I'm not going to do a lot, but it doesn't work for me, either!
0:21:01 > 0:21:07- That's good!- But it doesn't need a lot of work. You just have to see through the way it is at the moment.
0:21:07 > 0:21:13John, what do you mean there's not a lot of work here? I beg to differ. There's quite a lot of work to do.
0:21:13 > 0:21:18Perhaps I meant when you first look at it, it seems more than there is.
0:21:18 > 0:21:24Yes, there is a fair amount of work, but it's not something that would scare me
0:21:24 > 0:21:28and I think quite quickly you'll get the place together.
0:21:28 > 0:21:32Clearly it's not worrying you. You're very calm.
0:21:32 > 0:21:36- At the moment!- Think what you'll be like when we come back!
0:21:36 > 0:21:39- You'll be tearing your hair out! - Hopefully not!
0:21:39 > 0:21:47So that's the most basic changes John wants to make, but he knows there are more serious problems.
0:21:47 > 0:21:51There's evidence of damp, signs of rot,
0:21:51 > 0:21:56a hole in the roof and the gable end has started to move.
0:21:56 > 0:22:03The gable end has moved slightly, so I need to get a structural engineer in to look at that.
0:22:03 > 0:22:08I'm hoping I might get away with just tying it in. If not, I'll have to rebuild it.
0:22:08 > 0:22:12So that's probably going to be a bit of an expense to do.
0:22:12 > 0:22:19- So you've got money to spend here. - Yeah.- All these little costs are mounting.- They will mount up.
0:22:19 > 0:22:24- I haven't got a budget. - Oh, dear! A man with no budget! You're a walking nightmare!
0:22:24 > 0:22:30I've been told that, but I am very cautious with what I spend and what I spend it on.
0:22:30 > 0:22:34- Financially, have you done the maths?- I haven't done the maths.
0:22:34 > 0:22:39Why? This is a really important factor to property developing.
0:22:39 > 0:22:44- Exactly.- That's where you've got to start. Work out your end costs.
0:22:44 > 0:22:46I'm doing that in reverse!
0:22:46 > 0:22:50I'm going to use this as a bit of an experiment,
0:22:50 > 0:22:56controlling the costs as I go. What has to be done has to be done. In the cheapest possible way.
0:22:56 > 0:23:01- So what are we talking? £10,000? - I would hopefully do it for that.
0:23:01 > 0:23:06- So you're thinking around the £10,000 mark?- If it comes to a bit more, it's not a worry.
0:23:06 > 0:23:11How long do you think it's going to take you to get it in good order.
0:23:11 > 0:23:16- I would think, hopefully, two months. - Really?- Yeah, hopefully.
0:23:16 > 0:23:20If it takes longer, that's not a problem, but as quick as possible.
0:23:20 > 0:23:23I'll be full-time on here.
0:23:23 > 0:23:30It's going to be really exciting seeing the end product. At the moment it's not exciting me much!
0:23:30 > 0:23:33- I've seen worse...- Wait. - ..I have to say.
0:23:33 > 0:23:40This odd-shaped kitchen. It's going to be really interesting seeing the way you work it all out.
0:23:40 > 0:23:42And plan it out, I think.
0:23:42 > 0:23:49I think it'll be quite good. Not fantastic because I'll keep the cost as low as I can,
0:23:49 > 0:23:54but I think you'll see a marked improvement and think, "Wow!"
0:23:54 > 0:23:59- John, good luck with this project. I hope it works out.- Thank you.
0:23:59 > 0:24:05Skier John has got no budget for the work. That is a slipper slope to disaster if you ask me.
0:24:05 > 0:24:10The rent could be good, but there IS a lot of work to do.
0:24:10 > 0:24:15I'm worried that this is all going to go wrong. Am I being pessimistic?
0:24:15 > 0:24:18You can find out later on.
0:24:19 > 0:24:25Coming up: outside, this property in Nottingham looks great, but inside it's falling apart.
0:24:25 > 0:24:28Hmm. That's not too good, is it?
0:24:29 > 0:24:34We return to Kent to see if John's renovation budget is under control.
0:24:35 > 0:24:40I did not really have a clue what it was going to cost.
0:24:40 > 0:24:45But first, in Stoke, have those extension plans collapsed?
0:24:45 > 0:24:48We put the plans on hold. We got them passed.
0:24:51 > 0:24:56'We're back after a year to see how Guy and Emma have fared in their three-bedroom
0:24:56 > 0:25:04'detached house in Trentham in Stoke. Bought at auction for £153,000,
0:25:04 > 0:25:11'£3,000 over the guide price, this property really is a case of location, location, location.'
0:25:12 > 0:25:17- Tell me why you bought it. - Family very close. Next door.
0:25:17 > 0:25:20Next door?!
0:25:21 > 0:25:26'They have turned this empty shell into a comfortable, liveable home.
0:25:26 > 0:25:31'All the rooms have their own personal touch,
0:25:31 > 0:25:37'but they had ambitious plans to extend to a five-bedroom house and to redesign the ground floor.
0:25:37 > 0:25:44'There are no signs of any major structural changes here. Their house in Birmingham was sold,
0:25:44 > 0:25:49'so they should have been ready to roll. So what's going on?'
0:25:51 > 0:25:57Originally, our plans were to have the extension done, ready for my husband's 40th birthday.
0:25:57 > 0:26:01Unfortunately, he lost his job during the summer.
0:26:01 > 0:26:07Luckily, we put the plans on hold. We got them passed, but didn't get the builders in.
0:26:07 > 0:26:11'It was a wise move to postpone the planned extension.
0:26:11 > 0:26:18'To date they've only spent around £1,000 on the house, just to make it more homely
0:26:18 > 0:26:25'for themselves and their daughters. They have allowed themselves one luxury - a hot tub.
0:26:25 > 0:26:32'But they do have plans to install solar panels later to offset this indulgence.
0:26:32 > 0:26:36'They now have most of their furniture dotted around the house
0:26:36 > 0:26:42'and have decorated the front and back reception rooms, making warm, inviting living spaces.
0:26:48 > 0:26:54'In the kitchen, they've installed a new cooker and replaced some of the existing cupboards.
0:26:54 > 0:26:56'They seem to have settled in well.'
0:26:56 > 0:27:01It feels like home. It felt like home immediately.
0:27:01 > 0:27:06So many people said it's like you've been here a long, long time.
0:27:06 > 0:27:10'Upstairs, they're using the small bedroom as a makeshift dressing room
0:27:10 > 0:27:14'and they've decorated the two main bedrooms.
0:27:16 > 0:27:20'Skye and Maisie's room is, well, see for yourself.'
0:27:21 > 0:27:25# Pretty in pink
0:27:25 > 0:27:28# Isn't she
0:27:28 > 0:27:32# Pretty in pink? #
0:27:35 > 0:27:41'Guy has now secured a new job as a process engineer for a green energy technology company,
0:27:41 > 0:27:46'so Emma gave us a guided tour of their extension plans.'
0:27:46 > 0:27:53We're moving from a three-bedroomed house to a double-fronted four-bedroomed house
0:27:53 > 0:27:57with extra bathrooms and bigger downstairs living area.
0:27:57 > 0:28:03So you can see we're moving the garage that's existing to the opposite side of the house.
0:28:03 > 0:28:08And then having a big family eating kitchen and snug room downstairs.
0:28:08 > 0:28:14Then we go upstairs and the existing two bigger bedrooms remain as they are.
0:28:14 > 0:28:21And we're having a solar panel room upstairs that will then lead into
0:28:21 > 0:28:25the master bedroom, another spare bedroom and the wet room upstairs.
0:28:25 > 0:28:30We're trying to make it a slightly eco house as well.
0:28:30 > 0:28:36I really love what we've designed. The architects worked really well with us and built in all our ideas
0:28:36 > 0:28:40and some that he'd suggested from other properties he'd worked on
0:28:40 > 0:28:48but looking at them now I'm really excited to see them come fully into commission.
0:28:49 > 0:28:54'Has the amount they're planning to spend changed at all?'
0:28:54 > 0:29:00We're still looking at a budget of £70,000-£80,000. That includes a total rewire of the house
0:29:00 > 0:29:06and that should also include any utilities we need to put in and the solar panels.
0:29:06 > 0:29:11So we hope to stay on budget. Everything's ready, raring to go.
0:29:12 > 0:29:20'To make an assessment of the property's potential, we asked two local estate agents to evaluate it.'
0:29:22 > 0:29:26Having looked at the plans, very impressed.
0:29:26 > 0:29:30It adds a lot of space to the property and things that are missing.
0:29:30 > 0:29:34What I like about the plans is the kitchen especially,
0:29:34 > 0:29:42turning it into a living dining kitchen. The office in the garage, especially with the mezzanine.
0:29:42 > 0:29:48The plans are quite sympathetic, so it will look properly done and it's a sensible use of space.
0:29:48 > 0:29:54I think adding additional bedrooms and making the property bigger is a good idea
0:29:54 > 0:29:57making the resale a lot easier.
0:29:57 > 0:30:01'Guy and Emma have no intention of renting this property.
0:30:01 > 0:30:09'They bought it just over a year ago for £153,000 and have spent £1,000 on decorating.
0:30:09 > 0:30:13'Has the value increased much in that time?'
0:30:13 > 0:30:17I'd put the property on the market at £189,950.
0:30:17 > 0:30:22I would value this property somewhere in the region of £180,000 as it stands.
0:30:22 > 0:30:26I'm quite impressed with the value of the property as it stands.
0:30:26 > 0:30:31We've made the right decision, it's already making money for us,
0:30:31 > 0:30:35but we don't intend selling it now anyway.
0:30:39 > 0:30:43'If they do invest around £70,000 on the extension,
0:30:43 > 0:30:49'in addition to the £154,000 already spent, that would make a total of £224,000
0:30:49 > 0:30:56'plus the usual fees. So, crunch time - what would the resale value be with the extension?'
0:30:56 > 0:31:00If the property had the extensions that it has planning permission for,
0:31:00 > 0:31:03it would be put on the market for £269,000.
0:31:03 > 0:31:06I would market it at £250,000.
0:31:06 > 0:31:10Values once the extension is done, I'd like to see it slightly higher
0:31:10 > 0:31:14when somebody sees the potential of a family home.
0:31:14 > 0:31:20They've seen it from when it was empty to what it is now and we haven't done that much,
0:31:20 > 0:31:24so fingers crossed it'll be worth more.
0:31:30 > 0:31:37'Me and my husband met at the patch of land next to the house 26 years ago this year.
0:31:37 > 0:31:42'It would be nice to think that the children have their happy teenage years here as well.'
0:31:42 > 0:31:46So no plans to move for a long time.
0:31:48 > 0:31:52I'm in Annesley Woodhouse, about 7 miles outside Nottingham,
0:31:52 > 0:31:56in the very interestingly named Fox Street.
0:31:56 > 0:32:00I know the property market hasn't been BOOM BOOM recently,
0:32:00 > 0:32:04but there are some cunning opportunists out there.
0:32:04 > 0:32:11So what's the property like? Let's hope it's a bit sunnier and more positive than the weather.
0:32:12 > 0:32:14'I'm just glad I brought my brolly.
0:32:15 > 0:32:23'This property may be on Fox Street, but you needn't be wily to hunt out shops, schools and other amenities.
0:32:23 > 0:32:29'They're all within handy walking distance. This house had a guide price of £50,000
0:32:29 > 0:32:33'and looks in good condition, but what about the inside?
0:32:37 > 0:32:42'The first thing to catch my eye is that carpet.'
0:32:42 > 0:32:48My mum and dad had this in our lounge at home. They said, "Spend more on a really good carpet
0:32:48 > 0:32:54"and it'll last." I reckon that's been down for about 30 years and it's still going strong.
0:32:54 > 0:32:57What have we got? The lounge here.
0:32:57 > 0:32:59Hmm, that's not too good, is it?
0:32:59 > 0:33:06It doesn't feel too damp, but there's indications there of previous damp for sure.
0:33:06 > 0:33:10But it's not a bad size room, open fire there.
0:33:10 > 0:33:16And then through to the rear room. Now... it's a bit of a campaign of mine,
0:33:16 > 0:33:22but if ever I see glass doors like this, I say get rid of them. They are so dangerous. Look here.
0:33:22 > 0:33:28I'm not going to take it off, but that's obviously cracked, smashed, whatever.
0:33:28 > 0:33:32Imagine a small child running into that. Please get rid of that.
0:33:32 > 0:33:37Rear room here - again a good size. An open fire, we like that.
0:33:37 > 0:33:42A fairly standard layout, but there's a glass door right at the kitchen.
0:33:42 > 0:33:47Imagine a slippy kitchen floor, falling into that? Not brilliant.
0:33:47 > 0:33:52The kitchen needs a bit of sorting out. It's not huge, but usable.
0:33:52 > 0:34:00'You could rip out those old units and fixtures and create a modern galley kitchen.
0:34:00 > 0:34:07'That rear room would make a smashing dining room. I went upstairs to see what else I found.'
0:34:07 > 0:34:13There's a bathroom and a loo and then you go from one colourful bedroom...
0:34:14 > 0:34:16..to another.
0:34:16 > 0:34:22'The decor in the house is pretty dated and pretty colourful, too.
0:34:29 > 0:34:35'Things are slightly more muted in the bathroom. It definitely needs modernising,
0:34:35 > 0:34:42'especially if you wanted to rent it out. Around the back, there's a manageable little garden
0:34:42 > 0:34:45'with a handy shed for storage.'
0:34:45 > 0:34:52# Blue is the colour of the sky-y-y in the morning... #
0:34:53 > 0:35:00'With a bit of work, maybe this could be a good rental or a profitable resale.
0:35:00 > 0:35:05'What does a local estate agent think?
0:35:05 > 0:35:09'This is an ideal property for a first-time buyer.'
0:35:09 > 0:35:12Wants doing up, but the location is ideal.
0:35:12 > 0:35:17Proportion-wise, I'd leave the rooms as they were. It needs modernising.
0:35:17 > 0:35:22People still love their two reception rooms, especially with children.
0:35:22 > 0:35:28'The property's guide price was £50,000, but once all the work is done, how much could it resell for?'
0:35:29 > 0:35:35When renovated, I would suggest an asking price of around £79,950 for this property.
0:35:35 > 0:35:39'So after renovations, it could make a reasonable profit.
0:35:39 > 0:35:42'What about its rental value?'
0:35:42 > 0:35:47Being the two bedrooms, which will hold the price, obviously,
0:35:47 > 0:35:51I would be looking between £350 and £375 per calendar month.
0:35:51 > 0:35:57'Sounds like renting could also be a good option. Let's see who bought it when it went to auction.'
0:35:59 > 0:36:04Lot number 64 is in Annesley Woodhouse.
0:36:04 > 0:36:0645? 45 I have there.
0:36:06 > 0:36:09At £45,000, opening bid.
0:36:09 > 0:36:13At 45,000. 46 somewhere else? 46 is bid here.
0:36:13 > 0:36:18At £46,000. 46. 47 is bid. At 47.
0:36:18 > 0:36:2148. 48. 49?
0:36:22 > 0:36:25At £48,000. 49 somewhere else?
0:36:25 > 0:36:2849, thank you. At 49. 49,500.
0:36:28 > 0:36:3149,500. 50,000?
0:36:31 > 0:36:3550,000. At £50,000. 50 and a half?
0:36:35 > 0:36:39£50,000 I have. 50 and a half somewhere else?
0:36:39 > 0:36:42At £50,000. 500. 50 and a half.
0:36:42 > 0:36:45Out across by the bar, 51?
0:36:45 > 0:36:4751?
0:36:47 > 0:36:49At £50,500, then. Once.
0:36:49 > 0:36:53Twice. Third time. Sold at £50,500.
0:36:53 > 0:36:59That bidding was so quick and competitive, our camera couldn't quite keep up.
0:36:59 > 0:37:03The successful, but unseen bid was from Gary and Nicola.
0:37:03 > 0:37:06# Raindrops are falling on my head... #
0:37:06 > 0:37:12They are a local married couple and managed to get the property for £50,500.
0:37:12 > 0:37:18Nicola's a full-time mum to their two kids, while Gary is a self-employed joiner,
0:37:18 > 0:37:22which is always useful for the renovation.
0:37:25 > 0:37:29- Nicola, Gary, lovely to meet you both. Congratulations.- Thank you.
0:37:29 > 0:37:35- Why did you want to buy this place? - We were looking for an investment property,
0:37:35 > 0:37:40something long-term. A little nest egg, along those lines.
0:37:40 > 0:37:46- What spurred you into doing that? - Well, I've given up my job and Gary's self-employed,
0:37:46 > 0:37:52so we hope we might, if we're successful with this, build up a little property portfolio
0:37:52 > 0:37:56- for the future.- You're self-employed?- Self-employed joiner.
0:37:56 > 0:37:59Not had any work for quite a while.
0:37:59 > 0:38:05So it seemed an ideal opportunity to buy something like this to turn around quickly
0:38:05 > 0:38:08- and hopefully rent it out.- Right.
0:38:08 > 0:38:12But as fate deals its hand,
0:38:12 > 0:38:15I got a job starting next week.
0:38:16 > 0:38:21'Originally, Gary was going to do most of the work himself,
0:38:21 > 0:38:28'but with only a week to go before he starts his new job, he'll need to get some help.'
0:38:28 > 0:38:33We may employ people to decorate and to sort out the garden.
0:38:33 > 0:38:38- When I say employ, I mean parents and brothers and friends.- OK!
0:38:39 > 0:38:45But I'm still looking to be working on it evenings and weekends
0:38:45 > 0:38:50- so 99% of it we're going to do ourselves, aren't we?- Yeah.
0:38:50 > 0:38:56'They had planned to do the work in just eight weeks, but to accommodate Gary's new job
0:38:56 > 0:38:58'they've extended that to 18 weeks.'
0:39:01 > 0:39:03So tell me what you're going to do.
0:39:03 > 0:39:09Complete renovation, really, isn't it? It needs central heating in, a new kitchen...
0:39:09 > 0:39:13New bathroom, obviously decorating throughout, carpets, doors.
0:39:13 > 0:39:18It's not exactly gutting it, but everything will be new and fresh
0:39:18 > 0:39:22and starting from the beginning, really.
0:39:22 > 0:39:26'Nicola and Gary have budgeted £10,000 for the work,
0:39:26 > 0:39:32'but they're also thinking about an extension to the kitchen or maybe building on top of it
0:39:32 > 0:39:38'to create a third bedroom. That would increase their cost considerably,
0:39:38 > 0:39:42'but Nicola has other ways of saving money.'
0:39:42 > 0:39:46- We've done some real bargain hunting and got some good deals.- What?
0:39:46 > 0:39:51We've bought a kitchen and it was one that was being discontinued.
0:39:51 > 0:39:56So all the cupboard door fronts and drawer fronts were 99p.
0:39:56 > 0:39:59- 99 pence?!- Each. Yeah.
0:39:59 > 0:40:04For the door fronts and drawer fronts. So that was a huge saving.
0:40:04 > 0:40:08We've shopped around and bargain hunted for appliances.
0:40:08 > 0:40:15So, as I say, with it being a rental property, we're going to make sure that things are of a nice quality,
0:40:15 > 0:40:18but we wouldn't be choosing to our own taste.
0:40:18 > 0:40:24'Gary and Nicola are planning to rent this property out over a long period.
0:40:24 > 0:40:31'They have had a bad experience trying to make a quick sale on a bungalow. It took 14 months
0:40:31 > 0:40:34'so they're hedging their bets now.'
0:40:34 > 0:40:41- How does the experience you had last time affect you?- Of course, it was a learning experience,
0:40:41 > 0:40:47but with this one we've decided we want this as a long-term investment,
0:40:47 > 0:40:54so we plan to have it for the foreseeable future for us to rely on for our own retirement.
0:40:54 > 0:40:57So I'm quite positive about it.
0:40:57 > 0:41:03So, thankfully, Nicola and Gary not too put off by their first experience of property investing
0:41:03 > 0:41:08and returning to property as a way to secure their financial future.
0:41:08 > 0:41:15I'm a bit concerned about their timescales, especially with Gary's job, as time is money.
0:41:15 > 0:41:19How will they get on? Find out later in the show.
0:41:22 > 0:41:26Well, time moves on. Hopefully, work will have progressed.
0:41:26 > 0:41:32- Have our buyers experienced success or seen their investments wither away?- Let's find out.
0:41:35 > 0:41:41'We're back in Chatham in Kent after four months to see how former skiing instructor John
0:41:41 > 0:41:46'has got on renovating the property he bought for £80,000.
0:41:46 > 0:41:52'Consisting of a split level, two-bedroom flat above and then a studio flat,
0:41:52 > 0:41:55'it all needed serious attention.'
0:41:55 > 0:42:01- Did you view this property?- Yeah. It didn't put me off at all! I was OK with it.
0:42:01 > 0:42:06'Well, John has certainly treated this as a bit of a mission.'
0:42:06 > 0:42:12# I will try to fix you... #
0:42:18 > 0:42:23'Moving upstairs, and although not yet finished, John has stripped back the bedrooms
0:42:23 > 0:42:26'and replastered the walls.
0:42:31 > 0:42:38'Most significantly, he has turned the divided kitchen/bathroom into two practical spaces.
0:42:38 > 0:42:42'By moving the bathroom into the spare area beneath the stairs,
0:42:42 > 0:42:45'he has made room for a more functional kitchen.'
0:42:51 > 0:42:54The original partition wall was here. You see the line.
0:42:54 > 0:43:00We've taken that down and the other side of this wall in this very tiny space
0:43:00 > 0:43:07was the bathroom and toilet. So we've moved the whole bathroom underneath the stairwell.
0:43:13 > 0:43:19'By taking this innovative step, John's made the kitchen really family friendly.
0:43:26 > 0:43:32'Around the back, in the garden that was once a dumping ground, is now a building site!
0:43:34 > 0:43:38'John plans to divide this area between both properties,
0:43:38 > 0:43:44'providing off-street parking for the maisonette and garden space for the studio flat.
0:43:45 > 0:43:51'Inside, and the flat is barely recognisable from the derelict and dingy place it was previously.'
0:43:53 > 0:43:59This part of the basement flat, the roof was falling down and the ceiling.
0:43:59 > 0:44:05The floor was rotten. It had floorboards and they were completely rotten. We've taken that up
0:44:05 > 0:44:07and put a concrete floor down.
0:44:07 > 0:44:13We're going to put glass blocks over there. We've put new doors over here
0:44:13 > 0:44:19so there's going to be light coming from the front all the way through to the bedroom.
0:44:19 > 0:44:21Lots of natural light.
0:44:21 > 0:44:24We've got the kitchen here.
0:44:24 > 0:44:29What we did here, we moved that wall back six inches
0:44:29 > 0:44:32so we could have a nice galley kitchen.
0:44:32 > 0:44:38Still yet to be tiled. And behind you we've got the bathroom and a separate toilet.
0:44:38 > 0:44:44Got a little bit of work in there. It all has to be tiled. Basically, that's it.
0:44:44 > 0:44:50'John's undertaken a complete overhaul of what was once a neglected and dilapidated building.
0:44:50 > 0:44:55'He's done a great job of turning this place around.
0:45:10 > 0:45:15'John was rather vague about his renovation budget,
0:45:15 > 0:45:19'but it looks like there's been a lot of work done inside.
0:45:19 > 0:45:23'And what happened with the gable end that had started to move?'
0:45:23 > 0:45:27The roof at one time had actually moved slightly.
0:45:27 > 0:45:34We think that's because of the change of tiles from slate to concrete. They weren't supported properly.
0:45:34 > 0:45:39- It pushed the gable end wall out. - 'To do the repair actually involved removing the wall.
0:45:39 > 0:45:45'A complex arrangement of scaffolding was involved on every floor
0:45:45 > 0:45:47'so the work could be done safely.'
0:45:53 > 0:45:59When the wall came down, the roof didn't move. It was a nervous time, but it worked well.
0:45:59 > 0:46:04- 'I remember there was a damp issue, too.'- We suffered from lateral damp here in the basement,
0:46:04 > 0:46:10penetrating damp upstairs and throughout the house, and rising damp.
0:46:10 > 0:46:16The plaster was in ruins. So every bit of plaster in the whole house had to come off.
0:46:16 > 0:46:21Quite a long job, boring job, but we did it.
0:46:21 > 0:46:25'All of this must have impacted on John's non-existent budget.'
0:46:25 > 0:46:30Well, I did not really have a clue what it was going to cost.
0:46:30 > 0:46:34It was suggested about £10,000. I went with that.
0:46:34 > 0:46:40I shouldn't have done! I'm way out. I didn't think it would cost me as much as it did.
0:46:40 > 0:46:47It's going to come in only just under £40,000, I think. That's with everything finished.
0:46:47 > 0:46:51So it was a bit of a shock to me! But I've learned a lot.
0:46:51 > 0:46:54I don't think I could do it cheaper.
0:46:54 > 0:47:00'Having bought the property for £80,000 and spending around £40,000 on the refurbishment,
0:47:00 > 0:47:07'that's a total of £120,000. Is there any chance he can recoup this money?
0:47:07 > 0:47:14'We invited a couple of local estate agents round to evaluate the property as it stands.'
0:47:14 > 0:47:18A major difference when I first saw the property. The condition's good,
0:47:18 > 0:47:24the size is a lot bigger than I remembered. Obviously, it's all been cleared et cetera.
0:47:24 > 0:47:30- A major improvement. - The flats are quite unusual. The top flat is very large, two bedrooms,
0:47:30 > 0:47:35lounge, kitchen and bathroom. It's almost the size of a house.
0:47:35 > 0:47:37The bottom flat is different.
0:47:38 > 0:47:42And some people may not like it, being so cellar-wise,
0:47:42 > 0:47:48but for somebody young, maybe they'd like it. It was quite cute, actually.
0:47:48 > 0:47:52The lower ground floor flat is nice, it's open plan,
0:47:52 > 0:47:57made very good use of the living accommodation. Looks very good.
0:48:02 > 0:48:08'The estate agents reckon that renting both flats could bring a combined yield of 9%-10%.
0:48:08 > 0:48:14'But having spent so much on the renovation, John is keen to resell the property.'
0:48:14 > 0:48:22I think the resale valuation on the basement flat is going to be somewhere between £70,000-£75,000.
0:48:22 > 0:48:29The lower ground floor, one bedroom maisonette, we'd look to resell in the region of £70,000-£75,000.
0:48:29 > 0:48:34That's good. I'm pleased. I was looking at 70.
0:48:34 > 0:48:38The upstairs, two-bedroom, split level, much more desirable,
0:48:38 > 0:48:45but again you need to take into account the area and it would probably resell for £80,000-£85,000.
0:48:45 > 0:48:51For the two-bed flat, I would put it on the market with a guide price of £85,000-£95,000.
0:48:51 > 0:48:5690 I would be happy with. I was hoping for 90. That would be good.
0:48:57 > 0:49:02'By selling both flats, he could be looking at upwards of £150,000.
0:49:02 > 0:49:08'That should give him a profit of around £30,000 before tax and any legal expenses.
0:49:08 > 0:49:11'Is he tempted?'
0:49:11 > 0:49:13I'm probably going to look to sell,
0:49:13 > 0:49:20especially if I can achieve 90 for the top maisonette and 70 for the basement flat.
0:49:20 > 0:49:24That would be great. I've made a decent profit then.
0:49:24 > 0:49:27Then I've got another project to go onto.
0:49:29 > 0:49:35'John has clearly put a lot of effort into turning these run-down properties
0:49:35 > 0:49:41'into desirable places to live. His previous mantra of doing it the cheapest possible way has gone,
0:49:41 > 0:49:44'giving way to a desire to make comfortable homes.
0:49:44 > 0:49:51'Any profit he might make would be well earned. After all this work, he must be pleased.'
0:49:51 > 0:49:56I'm pleased about that, the overall finish of it, really.
0:49:56 > 0:50:01A few minor design faults that I could have rectified, but nothing much.
0:50:01 > 0:50:03I'm happy with everything.
0:50:06 > 0:50:12'We're back in Annesley in Nottinghamshire where Nicola and Gary bought this two-bedroom house
0:50:12 > 0:50:20'for £50,500 at auction. They hoped to turn this Fox Street property into an appealing little den.'
0:50:20 > 0:50:24- Get central heating in, new kitchen. - New bathroom, decorating,
0:50:24 > 0:50:27carpets, doors.
0:50:27 > 0:50:32- Everything's going to be new and fresh and starting from the beginning.- Yeah.
0:50:32 > 0:50:39'So how did they get on with the work? We caught up with them four months later to find out.
0:50:43 > 0:50:46'And what a transformation!
0:50:46 > 0:50:52'They've replastered every wall in the house, they've repainted and refloored in every room.
0:50:57 > 0:51:02'On top of that, they've installed a brand-new central heating system throughout.
0:51:03 > 0:51:08'The rather dated fireplaces have been replaced with trendy new ones.
0:51:08 > 0:51:14'And upstairs in the bathroom, well, the results speak for themselves.'
0:51:14 > 0:51:18OK, as you can see, we've had a complete new bathroom suite
0:51:18 > 0:51:24and we have done a bit of manoeuvring around from where the suite was originally positioned
0:51:24 > 0:51:31to create a better use of space, really. We think this is quite a nice family bathroom now.
0:51:31 > 0:51:36We did toy with the idea of doing a separate walk-in shower,
0:51:36 > 0:51:42but instead Gary suggested doing a shower over the bath with just a shower screen.
0:51:42 > 0:51:48That's meant we've been able to keep this cupboard here, which is great storage space for a family.
0:51:48 > 0:51:56And kept it nice and neutral, so hopefully it will appeal to all tastes. Gary's done a great job.
0:51:56 > 0:52:00'The other main room to get a complete overhaul was the kitchen.
0:52:01 > 0:52:05'It's not only brighter, it also has a lot more room
0:52:05 > 0:52:11'and is fitted with stylish appliances, units and brand-new worktops.
0:52:11 > 0:52:15'Gary has done pretty much all the work himself.
0:52:15 > 0:52:23'He's been sending evenings and weekends here, fitting around his day job as a joiner. That's handy.'
0:52:23 > 0:52:29Here we are, the kitchen. I've spent a lot of time and effort in here trying to reorganise it.
0:52:29 > 0:52:35It was quite tight in here before. It had units down both sides and was really narrow galley style.
0:52:35 > 0:52:42We put a new window in, opened up the doorway, complete new units and worktops.
0:52:42 > 0:52:46We're really happy with how it turned out. It works well.
0:52:46 > 0:52:52He's done the majority of the work himself, but he doesn't like to admit that.
0:52:52 > 0:52:58He has had a partner for a few days, but pretty much it's been a one-man job.
0:52:58 > 0:53:02'Gary's been pretty busy out the back, too.
0:53:02 > 0:53:06'He's cleared away the clutter, ready for grand plans in spring.'
0:53:06 > 0:53:13There's a little bit we'd like to do extra, but we're going to leave that until the nice weather comes around.
0:53:13 > 0:53:17Do it in sunshine rather than this cold, damp weather.
0:53:20 > 0:53:24'Gary's hectic work schedule means he's had less time to spend on this,
0:53:24 > 0:53:29'so the timescale has stretched from the original 18 weeks to 20.
0:53:29 > 0:53:32'But has the budget stretched, too?'
0:53:32 > 0:53:36Well, originally, we estimated about £10,000.
0:53:36 > 0:53:42Then once we'd actually got the keys and we'd time to really have a close look at things
0:53:42 > 0:53:47and confirm our plans, we then brought that down to about £8,500.
0:53:47 > 0:53:51And I've done a final calculation on what we've spent so far
0:53:51 > 0:53:58and we've actually come in £1,000 under that budget at £7,500 for the complete renovation,
0:53:58 > 0:54:00so we're quite pleased with that.
0:54:00 > 0:54:07'They haven't just come in under budget. It seems that Nicola and Gary's shrewd accounting
0:54:07 > 0:54:11'took the pressure off in other ways, too.'
0:54:11 > 0:54:17We've been lucky in a way that it hasn't actually cost us too much during that time
0:54:17 > 0:54:22when there's not been much happening while Gary was away on the other project.
0:54:22 > 0:54:28Had we had lots of costs to contend with, it would have really tipped the numbers
0:54:28 > 0:54:31and maybe made it unfinancially viable.
0:54:31 > 0:54:36So we've been quite lucky that we haven't had those costs.
0:54:37 > 0:54:43'Let's see if two local property experts think the work has paid off.'
0:54:46 > 0:54:52My first impressions of the property are that the owners have made a really good job
0:54:52 > 0:54:56of the refurbishment. It's done to a very good standard.
0:54:56 > 0:55:01It's well presented, an ideal first-time buyer property.
0:55:01 > 0:55:03In the modern style.
0:55:03 > 0:55:06It will attract investors and first-time buyers.
0:55:06 > 0:55:13'So has the renovation added value? Remember, Nicola and Gary paid £50,500 at auction
0:55:13 > 0:55:16'and they've done £7,500-worth of work.
0:55:16 > 0:55:21'Their total spend here is around 58 grand.'
0:55:21 > 0:55:29I would estimate the property to be put on the market for £69,950.
0:55:29 > 0:55:32I'd value this property at £75,000.
0:55:32 > 0:55:37'That's a great return of £12,000-£17,000 pre-tax profit,
0:55:37 > 0:55:41'minus any legal fees, of course. That's good to know,
0:55:41 > 0:55:45'but Nicola and Gary plan to rent it out first.
0:55:45 > 0:55:48'How will those figures stack up?'
0:55:49 > 0:55:54I would say rental of £375 per calendar month.
0:55:54 > 0:55:59For a rental figure, I'd expect to achieve £385 per calendar month.
0:56:00 > 0:56:08'In fact, Gary and Nicola have since managed to rent out the house for the middle of those valuations.
0:56:09 > 0:56:14'The rent is £380 a month, which gives them a great yield of just under 8%.
0:56:14 > 0:56:21'But getting a good financial return hasn't been the only reward on this project.'
0:56:21 > 0:56:27I think a combination of coming in under budget and just seeing the finished product
0:56:27 > 0:56:35is always good and very satisfying to see that all the hard work that's gone on over the weeks
0:56:35 > 0:56:42has come together and it all seems to have come together at the last minute to make it really worthwhile.
0:56:47 > 0:56:51Well, that's it for today. If you're prospecting for property gold,
0:56:51 > 0:56:57hopefully it's inspired you, but also made you aware of the pitfalls.
0:56:57 > 0:57:02We'll see you next time for more Homes Under The Hammer.
0:57:12 > 0:57:16Subtitles by Subtext for Red Bee Media Ltd - 2010
0:57:17 > 0:57:20Email subtitling@bbc.co.uk