0:00:02 > 0:00:04Despite all the doom and gloom, the property market
0:00:04 > 0:00:07can still be a tempting place to invest your money.
0:00:07 > 0:00:10It's important to be cautious and do all your research.
0:00:10 > 0:00:15But you can still get bargains buying your home under the hammer.
0:00:41 > 0:00:45If you're looking for a variety of property and good value too,
0:00:45 > 0:00:47then the auction house may be for you.
0:00:47 > 0:00:51So here are the properties that lured our buyers to the auctions on today's show.
0:00:52 > 0:00:54In Mid Glamorgan there's a property
0:00:54 > 0:00:57with an unbelievable guide price of just £9,000.
0:00:57 > 0:01:01No, you did hear right - £9,000, nine grand. Yes, yes.
0:01:03 > 0:01:08I find a rather tasty house in Bucknall, Stoke-on-Trent.
0:01:08 > 0:01:12I don't know whether it's just me, but this reminds me of a chocolate bar!
0:01:14 > 0:01:18And in Edinburgh, a flat that's full of surprises.
0:01:18 > 0:01:21Huh! You open a door expecting to find a cupboard
0:01:21 > 0:01:22and there's a set of stairs.
0:01:23 > 0:01:26All these properties have been sold at auction.
0:01:26 > 0:01:29We'll find out who bought them and what they paid for them
0:01:29 > 0:01:32- when they went under the hammer. - It's yours, sir.
0:01:34 > 0:01:37Four miles north of Maesteg in South Wales
0:01:37 > 0:01:41lies the former mining town of Caerau.
0:01:41 > 0:01:42Once a thriving place,
0:01:42 > 0:01:46it's been hit hard by the loss of the mining industry.
0:01:46 > 0:01:48That sadly resulted in high unemployment
0:01:48 > 0:01:50and collapse of the property market here.
0:01:50 > 0:01:53I'm here to see a property which had a guide price
0:01:53 > 0:01:57of just £9,000.
0:01:57 > 0:02:01No, you did hear right - £9,000, nine grand. Yes, yes.
0:02:01 > 0:02:04What do you expect for that? A garage? An old toilet block?
0:02:04 > 0:02:07But no. In this case it's this -
0:02:07 > 0:02:10an old former Baptist chapel.
0:02:10 > 0:02:13Looks incredible. Praise the Lord!
0:02:13 > 0:02:15But should I get my hopes up?
0:02:15 > 0:02:18It does look rather dilapidated from the outside.
0:02:18 > 0:02:21And a £9,000 guide price
0:02:21 > 0:02:24suggests there could be something seriously wrong here.
0:02:25 > 0:02:30The building was built in 1901 and was in regular use until 1998.
0:02:30 > 0:02:33But since then, like many such churches and chapels,
0:02:33 > 0:02:37this has fallen into disuse and disrepair.
0:02:37 > 0:02:40As you come around the side here, straightaway I'm very concerned.
0:02:40 > 0:02:44This whole wall almost seems to be a little bit bowed
0:02:44 > 0:02:48and the roof line is quite extraordinarily odd.
0:02:48 > 0:02:50On a building of this size,
0:02:50 > 0:02:53structural issues like that could be very expensive to put right.
0:02:53 > 0:02:55Let's take a look inside.
0:02:55 > 0:02:58It's when you view the building from the back
0:02:58 > 0:03:01that you really get an idea of how bad that roof line is.
0:03:01 > 0:03:04It's more like a roller coaster than a roof.
0:03:04 > 0:03:07So, does this place have more cons than pros?
0:03:07 > 0:03:12You can't get into the building from the front. You come down the side through this door,
0:03:12 > 0:03:16which leads you into the rear of the building and this, what I guess is the vestry.
0:03:16 > 0:03:21Imagine this being used for Sunday school classes in years gone by.
0:03:21 > 0:03:23Not that impressive a space.
0:03:23 > 0:03:26There's a bit of additional stuff there, an old kitchen.
0:03:26 > 0:03:29But the most impressive thing is through here.
0:03:32 > 0:03:36Now, this is more what you expect.
0:03:36 > 0:03:38Fantastic, big room.
0:03:38 > 0:03:42A lot of the original features still here, which is unusual.
0:03:42 > 0:03:45The pews are here, and you've got the pulpit.
0:03:45 > 0:03:48You've got this balcony up here with this amazing ironwork.
0:03:48 > 0:03:52However, a few serious issues with the roof.
0:03:52 > 0:03:54I can actually see daylight coming through.
0:03:54 > 0:03:57So, again, more expense to sort this place out.
0:03:57 > 0:04:00But what... what an amazing room!
0:04:00 > 0:04:03This really gets your imagination going.
0:04:04 > 0:04:06MUSIC: "Only Time" by Enya
0:04:06 > 0:04:11# Who can say where the road goes
0:04:11 > 0:04:14# Where the day flows?
0:04:14 > 0:04:16# Only time...#
0:04:16 > 0:04:19Unfortunately, the ravages of time have taken their toll here
0:04:19 > 0:04:23and it looks as though it's not just superficial damage.
0:04:23 > 0:04:26So perhaps time has finally run out for this chapel.
0:04:29 > 0:04:33It's easy to let your imagination run wild when you visit a place like this,
0:04:33 > 0:04:37contemplating maybe converting it into a family home.
0:04:37 > 0:04:39Sadly, I don't think the location
0:04:39 > 0:04:42warrants the amount of money you'd have to spend to do that.
0:04:42 > 0:04:45I think much more realistic options would include
0:04:45 > 0:04:50either keeping the building and converting it into four or six flats.
0:04:50 > 0:04:54However, I am concerned about the structural issues I've talked about.
0:04:54 > 0:04:58The likely option, I think, is, sadly, to knock it down
0:04:58 > 0:05:03and put maybe two, three, four houses in its place.
0:05:03 > 0:05:06MIKA: # This is the way you left me
0:05:06 > 0:05:08# I'm not pretending
0:05:08 > 0:05:11# No hope, no love, no glory
0:05:11 > 0:05:13# No happy ending...#
0:05:13 > 0:05:15The general state here means
0:05:15 > 0:05:18I really can't see a happy ending for the chapel now.
0:05:18 > 0:05:20But, for a developer,
0:05:20 > 0:05:22the story might be very different.
0:05:22 > 0:05:25In fact, it could be a heaven-sent opportunity.
0:05:25 > 0:05:29What would a local property expert recommend for this site?
0:05:31 > 0:05:35My recommendation for a change of use would be to convert into flats.
0:05:35 > 0:05:39I'd recommend looking in the region of between six and eight flats,
0:05:39 > 0:05:42a mix of one- and two-bedroom properties.
0:05:42 > 0:05:43But if flats were built,
0:05:43 > 0:05:47what sort of resale or rental value could they have?
0:05:47 > 0:05:51For a one-bedroom property I'd be looking for £50,000 to £55,000,
0:05:51 > 0:05:54for a two-bedroom possibly up to £60,000.
0:05:54 > 0:05:59For a one-bed property, you'd be looking at about £300 per calendar month,
0:05:59 > 0:06:01for a two-bed up to about £350 per calendar month.
0:06:01 > 0:06:05Remember, the chapel was guided at just £9,000,
0:06:05 > 0:06:08so, even with build costs, those kind of values
0:06:08 > 0:06:11could mean a substantial return for resale or rental.
0:06:11 > 0:06:16But the building itself may not be in good enough condition to convert, so what then?
0:06:16 > 0:06:19It might be an option for a full demolition
0:06:19 > 0:06:24and then rebuild into small terraced two- or three-bedroom properties in this area.
0:06:24 > 0:06:28They are achieving in the region of about £65,000, possibly £70,000.
0:06:28 > 0:06:32Probably looking at about £325 per calendar month as a rental.
0:06:32 > 0:06:34Again, providing planning permission was obtained,
0:06:34 > 0:06:38there could be quite a decent profit for any would-be developer.
0:06:38 > 0:06:41So this building may no longer draw in congregations,
0:06:41 > 0:06:44but it might just bring in some serious money.
0:06:44 > 0:06:47Well, I love old chapels and churches.
0:06:47 > 0:06:51They have such atmosphere and character.
0:06:51 > 0:06:55However, given the state of this one, I fear it may be about to be issued its last rites.
0:06:55 > 0:07:00The big question is: will it be demolished completely or converted into flats?
0:07:00 > 0:07:02I guess that's down to the new owner.
0:07:02 > 0:07:05So let's find out who bought it when it went to the auction.
0:07:09 > 0:07:12Go on to lot number 20 in the catalogue,
0:07:12 > 0:07:14which is the Hope Baptist Chapel.
0:07:14 > 0:07:18Who's going to put that in? There's been a lot of interest in it.
0:07:18 > 0:07:20Who's got ten for it?
0:07:20 > 0:07:22Ten surely to start me.
0:07:22 > 0:07:27Eight, then. Eight I'm bid. £8,000 is all I'm bid.
0:07:27 > 0:07:29At £8,000. This is no money for it.
0:07:29 > 0:07:32£10,000. Thank you, sir. Is that another one on the right?
0:07:32 > 0:07:36£12,000. Thank you, sir. I've seen you. At £12,000.
0:07:36 > 0:07:39And again, if they like. At £12,000. £13,000 if you like.
0:07:39 > 0:07:41£13,000. Thank you. £14,000 will you?
0:07:41 > 0:07:43At £13,000, seated here. At £13,000.
0:07:43 > 0:07:47£14,000. Thank you. £15,000 can I, sir? £15,000. Thank you.
0:07:47 > 0:07:49£15,000, seated on the aisle.
0:07:49 > 0:07:51At £15,000.
0:07:51 > 0:07:53£16,000, on the side. I saw you bid, yes.
0:07:53 > 0:07:57£17,000. Thank you. At £17,000. £18,000 is bid.
0:07:57 > 0:08:00At £18,000. Against you on the aisle.
0:08:00 > 0:08:02You'll have to hurry. £19,000. Thank you. At £19,000.
0:08:02 > 0:08:05£20,000 in the back of the room.
0:08:05 > 0:08:07At £20,000 he's out to the bids in the room.
0:08:07 > 0:08:10At £20,000 and one, if you like.
0:08:10 > 0:08:12At £20,000. £21,000 I'm bid. Thank you.
0:08:12 > 0:08:16£22,000 will you, sir? I'm selling all the time. £22,000 I'm bid.
0:08:16 > 0:08:19At £22,000. He's out on the phone at £22,000.
0:08:19 > 0:08:22He'll have to bid quickly. £23,000 is it? Yes, thank you.
0:08:22 > 0:08:27£23,000. £24,000. Again, £24,000. £25,000 if you want it.
0:08:27 > 0:08:29At £24,000 it's still a cheap property.
0:08:29 > 0:08:31£25,000 on the phone. At £25,000.
0:08:31 > 0:08:34Again for you, sir? £26,000 can I, please?
0:08:34 > 0:08:37£26,000 I'm bid. Thank you. At £26,000.
0:08:37 > 0:08:39I'm selling all the time, make no mistake.
0:08:39 > 0:08:41At £26,000. The bid's on my right in the room.
0:08:41 > 0:08:45Is that a bid? Yes or no? £27,000 on the phone I'm bid.
0:08:45 > 0:08:47At £27,000. £28,000 in the room.
0:08:47 > 0:08:49Please ask him to be quick on the phone.
0:08:49 > 0:08:51£28,000, yes or not?
0:08:51 > 0:08:54£29,000. Thank you. Fill it up, will you, sir?
0:08:54 > 0:08:55£30,000 bid in the room.
0:08:55 > 0:08:58At £30,000 I'm bid. Is he coming again? Yes or no?
0:08:58 > 0:09:01At £30,000. The phone bidder is out.
0:09:01 > 0:09:03At £30,000. Are we all done?
0:09:03 > 0:09:08At £30,000. It's yours, sir. Thank you very much. At £30,000.
0:09:08 > 0:09:10Phoar! £30,000.
0:09:10 > 0:09:13The successful bidder, hidden behind the pillar, was Paul.
0:09:13 > 0:09:17The purchase is to be a joint venture with his brother-in-law, Ceri.
0:09:17 > 0:09:20Paul and Ceri run a builders' merchant's
0:09:20 > 0:09:23and have over 40 years in the building trade between them.
0:09:23 > 0:09:27So I was intrigued to hear how they were going to use their experience
0:09:27 > 0:09:29to tackle this dilapidated chapel.
0:09:29 > 0:09:32Paul, Ceri, good to meet you both.
0:09:32 > 0:09:34Why did you want to buy the church?
0:09:34 > 0:09:38Well, we didn't actually plan to buy the church.
0:09:38 > 0:09:41One of our employees was driving past one day,
0:09:41 > 0:09:43told us he saw the place and it was for auction.
0:09:43 > 0:09:48Paul went to the auction the next day and we bought it there and then, on a whim.
0:09:48 > 0:09:50- On a whim?- On a whim, yeah.
0:09:50 > 0:09:52This isn't a simple project, though, is it?
0:09:52 > 0:09:56You'd have thought this would have required a bit of pre-planning.
0:09:56 > 0:10:00Well, no. We don't normally give a lot of pre-planning to much.
0:10:00 > 0:10:04If we'd given it a lot of planning, we might have changed our minds.
0:10:04 > 0:10:06So spur of the moment is usually best.
0:10:06 > 0:10:10So far we've never lost out by doing something on the spur of the moment.
0:10:10 > 0:10:12So, touch wood, everything's worked out OK.
0:10:14 > 0:10:18So - dare I say it? - they've taken a leap of faith with this building,
0:10:18 > 0:10:21hoping that Hope Chapel can be a whim that wins.
0:10:21 > 0:10:22MUSIC: "Faith" by George Michael
0:10:22 > 0:10:24# I gotta have faith
0:10:24 > 0:10:27# Because I gotta have faith, faith, faith
0:10:27 > 0:10:30# I gotta have faith, faith, faith #
0:10:30 > 0:10:33So, what kind of projects do you generally get involved in?
0:10:33 > 0:10:38More or less the same thing. We bought a school in Ogmore Vale, the valley next to this one.
0:10:38 > 0:10:42We knocked the school down, put 12 houses on there and rent them.
0:10:42 > 0:10:47The old yard we owned as a builders' merchant's we knocked down, put five houses on there,
0:10:47 > 0:10:49and we rent that as well.
0:10:49 > 0:10:53- So it's generally buy somewhere, knock it down, put something in its place.- Develop it.
0:10:53 > 0:10:58- Is that what will happen here? - We'll knock this down, develop it, put four houses here for rent.
0:10:58 > 0:11:01Right. Er... why are you knocking it down?
0:11:01 > 0:11:06Well, have you seen it? It's not in the best shape.
0:11:06 > 0:11:09There are some serious structural issues here as well.
0:11:09 > 0:11:11If we didn't do something about it,
0:11:11 > 0:11:14we'd have to spend a lot of money to keep it.
0:11:14 > 0:11:16This scheme is quite well-advanced,
0:11:16 > 0:11:19as Paul and Ceri have already had plans drawn up.
0:11:20 > 0:11:22So, talk me through the plans.
0:11:22 > 0:11:27Basically we've got here a block of four two-bedroom link houses,
0:11:27 > 0:11:32with rear access for the parking and some small gardens just behind.
0:11:32 > 0:11:36I'm quite surprised that you can get four houses into this space,
0:11:36 > 0:11:38because it isn't massive.
0:11:38 > 0:11:40No, they won't be huge houses,
0:11:40 > 0:11:43but they're a reasonable size.
0:11:43 > 0:11:46We've got houses like this elsewhere so we know they work.
0:11:46 > 0:11:49At what stage are these plans, then?
0:11:49 > 0:11:53- Well, they're very close, hopefully, to being passed.- OK.
0:11:53 > 0:11:57We've had good information that they will pass so, fingers crossed, there'll be a result.
0:11:57 > 0:12:01Give me an idea of costings on this.
0:12:01 > 0:12:06We've a costing idea on that - somewhere around £120,000 to build the four.
0:12:06 > 0:12:08- Right, so 30 grand each. - Thereabouts, yeah.
0:12:08 > 0:12:13Paul, you'll be heavily involved in this project. How long do you think it'll take?
0:12:13 > 0:12:17Timewise we hope to wrap it up in eight months, providing we have no hiccups with planning.
0:12:17 > 0:12:19The buildings will go up in timber frame,
0:12:19 > 0:12:21so it'll be a quick build anyway.
0:12:21 > 0:12:25So hopefully eight months should be more than achievable.
0:12:25 > 0:12:27The timber frame is also quite efficient
0:12:27 > 0:12:29in terms of U-values and that kind of stuff.
0:12:29 > 0:12:33U-values it's very good but also costwise it's very good.
0:12:33 > 0:12:38Good luck with it all. Clearly I won't recognise the place when we come back.
0:12:38 > 0:12:40No, hopefully not.
0:12:40 > 0:12:43- I hope it turns out great. - Thank you.- Thank you.
0:12:43 > 0:12:44# Because I gotta have faith
0:12:44 > 0:12:47# Mmm, I gotta have faith
0:12:47 > 0:12:50# Because I gotta have faith, faith, faith
0:12:50 > 0:12:53# I gotta have faith, faith, faith #
0:12:53 > 0:12:57Paul and Ceri certainly have the experience to take on this project
0:12:57 > 0:13:01and the added advantage of owning that builders' yard. How good is that?
0:13:01 > 0:13:04However, they still have not officially got planning permission
0:13:04 > 0:13:08to knock down this old chapel and put those four houses in its place.
0:13:08 > 0:13:10And you never know what might happen.
0:13:10 > 0:13:12You can find out if the houses are built
0:13:12 > 0:13:16or if some divine intervention occurs to save the old chapel
0:13:16 > 0:13:18later in the show.
0:13:21 > 0:13:25Staffordshire may not be top of most mystery writers' lists of locations,
0:13:25 > 0:13:30but, for me, a line in the auction catalogue hinted at something worth investigating.
0:13:31 > 0:13:35I've travelled to a place called Bucknall in Stoke-on-Trent
0:13:35 > 0:13:39and the auction catalogue tells me I'm here to see a rare opportunity.
0:13:39 > 0:13:43Here it is. A semi-detached house, looks attractive from the outside.
0:13:43 > 0:13:46I wonder what makes it a rare opportunity.
0:13:46 > 0:13:48Intriguing? Let's go inside.
0:13:48 > 0:13:50MUSIC: "The Pink Panther Theme"
0:13:50 > 0:13:53From the outside it looks, well, quite unassuming,
0:13:53 > 0:13:58but this auction lot obviously has something up its sleeve.
0:13:59 > 0:14:03Well, there's absolutely nothing small and compact about this house.
0:14:03 > 0:14:05It's a really good size.
0:14:05 > 0:14:08Lots of different colours and swirls and whirls
0:14:08 > 0:14:11and old-fashioned carpet and wallpaper everywhere.
0:14:11 > 0:14:13You've got to see beyond that
0:14:13 > 0:14:15because this has got a nice solid feel to it.
0:14:15 > 0:14:17A really spacious lounge.
0:14:17 > 0:14:21You've got these lovely little doors. They add a bit of character.
0:14:21 > 0:14:24A nice big window letting in loads of light.
0:14:24 > 0:14:28I don't know whether it's just me, but this reminds me of a chocolate bar!
0:14:28 > 0:14:32As you can see, it completely needs modernising.
0:14:32 > 0:14:34But it's got good, solid bones.
0:14:35 > 0:14:38A chimney breast made of chocolate?
0:14:38 > 0:14:41It's a nice idea, but probably as useful as a chocolate fireguard.
0:14:41 > 0:14:44And the kitchen's hardly what you'd describe as sweet.
0:14:44 > 0:14:48Although it is a good size and isn't in bad nick,
0:14:48 > 0:14:50a bit of upgrading wouldn't go amiss.
0:14:50 > 0:14:51And the carpets, well,
0:14:51 > 0:14:55let's just say they're probably not to everybody's taste.
0:14:55 > 0:14:58You've all heard of a HIP pack, which was launched in 2007,
0:14:58 > 0:15:01and they were mandatory for anybody selling a home.
0:15:01 > 0:15:03Well, they've now been scrapped.
0:15:03 > 0:15:07However, sellers will still be required to get an EPC.
0:15:07 > 0:15:09That's an Energy Performance Certificate,
0:15:09 > 0:15:12and it shows how energy-efficient a property is.
0:15:12 > 0:15:17Now, this is a requirement under EU law, and they cost around 60 quid.
0:15:17 > 0:15:20So all property developers and homeowners out there need to know,
0:15:20 > 0:15:24when renovating a property, be mindful of insulation,
0:15:24 > 0:15:28because draughty windows and gaping floorboards are a no-no.
0:15:28 > 0:15:32DAWN PENN: # No, no, no...#
0:15:33 > 0:15:34OK, so perhaps this place
0:15:34 > 0:15:38isn't as hot a property as it should be at the moment.
0:15:38 > 0:15:41But a little time and money could easily remedy that.
0:15:41 > 0:15:44Nothing I see in the three bedrooms or the bathroom is unusual
0:15:44 > 0:15:46for a house of this age.
0:15:47 > 0:15:49OK, so I'll come clean.
0:15:49 > 0:15:53This is the rare opportunity the auction catalogue refers to.
0:15:53 > 0:15:55It's not just a huge garden to the side.
0:15:55 > 0:15:57This is actually a building plot,
0:15:57 > 0:16:01because there's outline planning permission to erect a house here.
0:16:01 > 0:16:05Now, a new property in this area could achieve as much as £120,000.
0:16:05 > 0:16:09When you consider the guide price was set at just £90,000,
0:16:09 > 0:16:13this auction lot is a rare opportunity indeed.
0:16:13 > 0:16:18TAKE THAT: # Could this be the magic at last? #
0:16:19 > 0:16:23So there's plenty of scope to make some serious cash here.
0:16:23 > 0:16:26If you got planning permission to develop this site and did so,
0:16:26 > 0:16:31the profit would probably pay for the refurbishment of the house - and then some.
0:16:31 > 0:16:33But it's not all good news.
0:16:33 > 0:16:37Stoke is an ex-mining area, so you should obtain a mining report
0:16:37 > 0:16:40before you even think about buying this.
0:16:40 > 0:16:43Obtaining a mortgage at the best of times can be difficult.
0:16:43 > 0:16:48It could prove impossible if you discover you're extremely close to a mine.
0:16:48 > 0:16:53It's vitally important you carry out a report before going to the auction.
0:16:53 > 0:16:55And some more bad news, I'm afraid.
0:16:55 > 0:16:58This building plot is actually next door...
0:16:58 > 0:17:00to a substation.
0:17:00 > 0:17:03MUSIC: "High Voltage" by AC/DC
0:17:10 > 0:17:12Well, that's a bit of a shock.
0:17:12 > 0:17:15So this property's a real mixture of good and bad.
0:17:15 > 0:17:18But do the POSITIVES outweigh the NEGATIVES?
0:17:18 > 0:17:21What does the local estate agent think?
0:17:21 > 0:17:24The house itself has got lots of potential.
0:17:24 > 0:17:26It's a good size. Three good-sized bedrooms,
0:17:26 > 0:17:29and obviously a generous-sized plot.
0:17:29 > 0:17:33There's a substation which is quite close to the plot.
0:17:33 > 0:17:35This may be off-putting to some people
0:17:35 > 0:17:39but I can't imagine it would prevent a sale.
0:17:39 > 0:17:41But let's talk figures.
0:17:41 > 0:17:46How much could the plot of land be worth if sold separately?
0:17:46 > 0:17:51Potentially, the plot on its own could be worth in the region of £35,000,
0:17:51 > 0:17:55which would have a slight impact on the value of the property,
0:17:55 > 0:17:57but only to the extent of around £10,000.
0:17:58 > 0:18:01So, potentially, £35,000 just for the plot.
0:18:01 > 0:18:06How much would a refurbished house with a smaller garden be worth?
0:18:06 > 0:18:08After renovation,
0:18:08 > 0:18:12I would imagine this property would be worth in the region of £90,000.
0:18:12 > 0:18:14So the property alone, once renovated,
0:18:14 > 0:18:17could be worth that £90,000 guide price.
0:18:17 > 0:18:20So any revenue from the potential building plot
0:18:20 > 0:18:22would mean a decent profit.
0:18:22 > 0:18:27The estate agent thinks that the house could be rented out for around £450 a month.
0:18:27 > 0:18:30So perhaps the catalogue description was right.
0:18:30 > 0:18:33This is indeed a rare opportunity,
0:18:33 > 0:18:37and, if everything goes to plan, it will be lucrative for someone.
0:18:37 > 0:18:39But of course the mining report is a worry,
0:18:39 > 0:18:43and the close proximity to the substation is not ideal.
0:18:43 > 0:18:47Somebody wanted this, though. Let's find out who as we go to auction.
0:18:51 > 0:18:54Lot 36, this is the Bucknall area, Stoke-on-Trent.
0:18:54 > 0:18:56It's a semi-detached house.
0:18:56 > 0:18:59It has outline planning permission to build another dwelling
0:18:59 > 0:19:01within the existing garden.
0:19:01 > 0:19:03So, what shall we say for lot 36?
0:19:03 > 0:19:05£70,000, then.
0:19:05 > 0:19:09Lot number 36. £70,000 I'm bid. Thank you. At £70,000.
0:19:09 > 0:19:11£75,000 I'm going to say now.
0:19:11 > 0:19:14Yes? £75,000. At £75,000.
0:19:14 > 0:19:15£75,000. £80,000.
0:19:15 > 0:19:17At £80,000.
0:19:17 > 0:19:20I'll take two if it helps.
0:19:20 > 0:19:22At £82,000.
0:19:22 > 0:19:24£84,000 is it? £84,000.
0:19:24 > 0:19:25At £84,000.
0:19:25 > 0:19:28Another two? £86,000? Yes, £86,000.
0:19:28 > 0:19:30At £86,000.
0:19:30 > 0:19:34I'll take one if it helps. New bidder, £87,000.
0:19:34 > 0:19:36£88,000 is it?
0:19:36 > 0:19:38At £88,000.
0:19:38 > 0:19:40£89,000. £90,000.
0:19:40 > 0:19:44£91,000. £92,000. £93,000. £94,000.
0:19:44 > 0:19:46£95,000.
0:19:46 > 0:19:50At £95,000. Bid seated left, at £95,000.
0:19:50 > 0:19:52At £95,000. Against to your right.
0:19:52 > 0:19:54£95,000, then, first time.
0:19:54 > 0:19:58At £95,000 second time.
0:19:58 > 0:20:01Third and final time at £95,000.
0:20:02 > 0:20:04You've bought it, sir. Well done.
0:20:04 > 0:20:05For £95,000,
0:20:05 > 0:20:09the successful bidder for the three-bed semi in Bucknall is Ian.
0:20:09 > 0:20:13He's a surveyor and manages his own construction company
0:20:13 > 0:20:15that specialises in commercial properties.
0:20:15 > 0:20:21I was interested to hear how he viewed this house and potential building plot.
0:20:22 > 0:20:26- Ian, congratulations. You bought this house.- Thank you. - And a plot with outline planning.
0:20:26 > 0:20:32- What are you going to do with it? - The house is going to be renovated and rented.
0:20:32 > 0:20:35The building plot it looks like I've sold already.
0:20:35 > 0:20:39- How much money have you been offered to sell that? - £35,000 for the plot.- Wow!
0:20:39 > 0:20:42So it's almost like you've had 35 grand knocked off of this.
0:20:42 > 0:20:44Yes, I suppose so, really. Yes.
0:20:44 > 0:20:50He paid £95,000 at auction, so if he gets that £35,000 for the plot,
0:20:50 > 0:20:54then, in effect, he'll have got the house for just 60 grand.
0:20:54 > 0:20:56This is Ian's third property purchase.
0:20:56 > 0:21:00He has previously bought and refurbished a house for his son.
0:21:00 > 0:21:01Also, he has an ongoing project
0:21:01 > 0:21:04with a lot he bought over two years ago.
0:21:04 > 0:21:08On that, he hopes to build a new home for himself and his wife, Claire.
0:21:08 > 0:21:10We previously filmed at that purchase too.
0:21:10 > 0:21:15And we'll see the outcome of this development in a later programme.
0:21:15 > 0:21:17# Let's get busy busy...#
0:21:17 > 0:21:21So clearly, once that gets started, Ian's going to be pretty busy.
0:21:21 > 0:21:25But meantime he decided to keep his property portfolio ticking over
0:21:25 > 0:21:29and has wisely selected this slightly less demanding project.
0:21:29 > 0:21:32How long do you think it'll take to get this house up and running?
0:21:32 > 0:21:34Six to eight weeks, I think.
0:21:34 > 0:21:38- Are you going to be getting your hands dirty? - I'll let the wife do that.
0:21:38 > 0:21:41- SHE LAUGHS - She enjoys that sort of thing.
0:21:41 > 0:21:44- Can you really leave her to it? - Oh, very much so, yes.
0:21:44 > 0:21:48She's done all the design work on all the previous houses,
0:21:48 > 0:21:53- and she does like to enjoy it, get a hammer out, get a saw out. - HE LAUGHS
0:21:53 > 0:21:56- And how far away from your work are you?- A two-minute walk.
0:21:56 > 0:21:59So the location here is ideal, really,
0:21:59 > 0:22:02to look at the property,
0:22:02 > 0:22:05and you can oversee it when it's rented.
0:22:05 > 0:22:09- So you'll sneak away from work, do a bit of work here, sneak back again...- That's it.
0:22:09 > 0:22:13- Your wife can be here making you a nice cup of tea and a bit of lunch.- That's right.
0:22:13 > 0:22:16Then she'd get her paint brushes out.
0:22:16 > 0:22:20MUSIC: "Good Thing" by Fine Young Cannibals
0:22:20 > 0:22:23This looks like a really good project for Ian.
0:22:23 > 0:22:25He's got some potential money for the plot of land,
0:22:25 > 0:22:28his wife Claire will do the decorating
0:22:28 > 0:22:30and it's just two minutes from his office.
0:22:30 > 0:22:34What budget are you looking at? How much do you need to spend to update this?
0:22:34 > 0:22:37The kitchen will have to be totally replaced.
0:22:37 > 0:22:40The same with the bathroom.
0:22:40 > 0:22:43I would expect... a maximum of £10,000.
0:22:43 > 0:22:48Wow! That's for a new kitchen, a new bathroom, all the carpets need changing.
0:22:48 > 0:22:50I'll probably keep some of the carpets.
0:22:50 > 0:22:53What about that cladding above the fireplace?
0:22:53 > 0:22:58- Don't you think it's nice? - Are you going to keep that as well as the carpets?
0:22:58 > 0:23:00- No, that'll come off. - Good. I'm very happy about that.
0:23:00 > 0:23:03The polystyrene tiles as well might have to go.
0:23:03 > 0:23:08- Ian, congratulations.- Thank you. - I hope you keep to that £10,000 budget.- I will, definitely.
0:23:08 > 0:23:10- Well done. - Thank you very much indeed.
0:23:10 > 0:23:13MUSIC: "Good Thing" by Fine Young Cannibals
0:23:22 > 0:23:26Ian, the shrewd businessman, has made money already.
0:23:26 > 0:23:27That is fast going.
0:23:27 > 0:23:33With a team of first-class helpers on hand, he plans to complete this in just six to eight weeks,
0:23:33 > 0:23:36and for just £10,000!
0:23:36 > 0:23:38Will he or won't he?
0:23:38 > 0:23:41You can find out how he gets on later in the programme.
0:23:43 > 0:23:45Coming up, in Edinburgh I see a flat
0:23:45 > 0:23:49where you seem to get a lot for your money.
0:23:49 > 0:23:52Almost a bonus to what is already a great place.
0:23:53 > 0:23:58We return to Stoke-on-Trent to see how Ian's house has blossomed.
0:23:58 > 0:24:02Got rid of all that flowery paper, got rid of the flowery carpets.
0:24:04 > 0:24:06But first, I'm off to Wales
0:24:06 > 0:24:09to see how that brother-in-law partnership is going.
0:24:09 > 0:24:12Can't get rid of him. He's family.
0:24:16 > 0:24:18Just outside Maesteg in Mid Glamorgan
0:24:18 > 0:24:21is the old mining village of Caerau.
0:24:23 > 0:24:26It was here I found this old Baptist chapel.
0:24:26 > 0:24:29It was once the venue of weddings, baptisms, christenings
0:24:29 > 0:24:32and many other precious moments.
0:24:32 > 0:24:35MUSIC: "Precious Moments" by the Three Degrees
0:24:35 > 0:24:38Now, sadly neglected and in a sorry state,
0:24:38 > 0:24:43this once important community space was in desperate need of salvation.
0:24:43 > 0:24:48It was bought for just £30,000 by brothers-in-law Paul and Ceri.
0:24:48 > 0:24:51As they both run a builders' merchant's and a building firm,
0:24:51 > 0:24:54they seemed the perfect pair to save this old chapel
0:24:54 > 0:24:56and give it a new beginning.
0:24:57 > 0:24:59# Is this my beginning
0:25:00 > 0:25:04# Or is this the end? #
0:25:04 > 0:25:08We'll knock this down, develop it, put four houses here for rent.
0:25:08 > 0:25:11We've got another project after this, another 13 houses to do,
0:25:11 > 0:25:14which will be the same thing, build to rent again.
0:25:14 > 0:25:17Right. Er... why are you knocking it down?
0:25:17 > 0:25:21Well, have you seen it? It's not in the best shape.
0:25:21 > 0:25:24There are some serious structural issues here as well.
0:25:24 > 0:25:28If we didn't do something about it, we'd have to spend a lot of money to keep it.
0:25:28 > 0:25:32It did indeed look like there was no hope for the chapel
0:25:32 > 0:25:34and its end was nigh.
0:25:34 > 0:25:39But for Paul and Ceri to carry out the build, they needed planning permission.
0:25:39 > 0:25:41So, 15 months on,
0:25:41 > 0:25:44had the time come to wave a fond farewell to the chapel?
0:25:52 > 0:25:53Well, yes.
0:25:53 > 0:25:56Paul and Ceri have successfully carried out their plan
0:25:56 > 0:25:59for four two-bedroom houses.
0:26:00 > 0:26:02Planning went smoothly.
0:26:02 > 0:26:05The plans went in and got approved quite quickly.
0:26:05 > 0:26:08The council were glad to see the church come down because of its state.
0:26:08 > 0:26:12In the end, it was felt the building just wasn't worth saving
0:26:12 > 0:26:14and Paul and Ceri could start a new build.
0:26:14 > 0:26:16How long did it all take?
0:26:16 > 0:26:19To get through planning and to demolish the site,
0:26:19 > 0:26:21probably around the three-month mark.
0:26:21 > 0:26:24And then construction started immediately after that.
0:26:27 > 0:26:33So, 15 months after our first visit, this is the final result.
0:26:35 > 0:26:38As you can see, we're in the kitchen at the moment.
0:26:38 > 0:26:40The work surfaces and all the machines are behind you
0:26:40 > 0:26:43and the dining area is here at the bottom.
0:26:43 > 0:26:48We always tend to put a toilet, a WC, into this part of the house.
0:26:48 > 0:26:53Very convenient. Good to have one downstairs as well as up.
0:26:53 > 0:26:56Through the back door we've got a little patio area
0:26:56 > 0:27:00which leads down to the garden, which has been turfed.
0:27:01 > 0:27:04This size of property makes it an ideal starter home
0:27:04 > 0:27:07or is perfect for the local rental market.
0:27:14 > 0:27:17As you can see, upstairs we've got a bathroom
0:27:17 > 0:27:18at the back of the house,
0:27:18 > 0:27:22a small bedroom next to it and a large double bedroom at the front of the house.
0:27:22 > 0:27:28We stuck to a two-bedroom design because we felt that would suit the rental market in this area,
0:27:28 > 0:27:30and that has proved to be the case.
0:27:31 > 0:27:35Yes, because, as all the furniture and possessions show,
0:27:35 > 0:27:38they've already successfully rented this house out.
0:27:38 > 0:27:40And it's not just this one.
0:27:48 > 0:27:53When they were completed, we put them to our agent. She was able to let them fairly quickly.
0:27:53 > 0:27:56All four are occupied now. So, yeah, a very good project.
0:27:56 > 0:27:59FEIST: # One, two, three, four
0:27:59 > 0:28:01# Tell me that you love me more...#
0:28:01 > 0:28:04What a result! Two months after completing the build,
0:28:04 > 0:28:07all four houses are rented out and bringing in revenue.
0:28:07 > 0:28:10That will help offset the build costs.
0:28:10 > 0:28:13We spent just under £120,000 for the four,
0:28:13 > 0:28:15so they all came in under budget.
0:28:16 > 0:28:20With a purchase price of £30,000 and build costs of around £120,000,
0:28:20 > 0:28:26Paul and Ceri have about £150,000 invested in the four houses.
0:28:26 > 0:28:28Was that money well spent?
0:28:28 > 0:28:31What do two local state agents think?
0:28:31 > 0:28:33I think they've done a very good job.
0:28:33 > 0:28:37I think it fits in with the area. The architecture's not supermodern,
0:28:37 > 0:28:41so it does tie in with the original terraced properties.
0:28:41 > 0:28:44They're quite small, and they haven't gone to town on finishes,
0:28:44 > 0:28:47but I think they'll let very well.
0:28:51 > 0:28:54I think what they've done here is really different
0:28:54 > 0:28:56because obviously, predominantly,
0:28:56 > 0:29:00they're just terraced cottages, the old miners' terraced cottages.
0:29:00 > 0:29:05What they've done is different and unique. I think it goes down really well. I like what they've done.
0:29:05 > 0:29:08The only problem I can see at the back, to be honest with you,
0:29:08 > 0:29:12is the fact that haven't actually privatised the garden.
0:29:12 > 0:29:16I do think that they could put up some sort of boundary fencing
0:29:16 > 0:29:20just so that you can outline the individual properties' gardens.
0:29:20 > 0:29:23As we know, they've already rented out the properties.
0:29:23 > 0:29:27But did they make a good long-term investment of around 150 grand,
0:29:27 > 0:29:31or just under £40,000 per house?
0:29:31 > 0:29:35I would value this property at approximately £70,000 to achieve in excess of £65,000.
0:29:35 > 0:29:41If I was going to market this property, I would be looking at an asking price of £74,950,
0:29:41 > 0:29:45and I would expect offers in the region of £70,000-£72,000.
0:29:45 > 0:29:48It's probably a fair price for the properties at the moment.
0:29:48 > 0:29:52When the recession turns round, hopefully then we'll get a bit more for them,
0:29:52 > 0:29:55which is somewhere around the £80,000 mark, £85,000.
0:29:55 > 0:29:59At the end of the day, we've got no intention to sell the properties.
0:29:59 > 0:30:00The plan is to rent them long term.
0:30:00 > 0:30:03But even at £65,000 to £70,000,
0:30:03 > 0:30:08the four houses could net £260,000 to £280,000.
0:30:08 > 0:30:13That would mean a pre-tax profit of over £100,000. Not bad!
0:30:13 > 0:30:18But for now, it's the rental market they're most interested in.
0:30:18 > 0:30:22I'd expect to achieve between £350 and £375 per calendar month.
0:30:22 > 0:30:28Today's market, you're looking at £400 to £425 per calendar month.
0:30:28 > 0:30:31Erm... yeah, that's probably about where it should be.
0:30:31 > 0:30:34We're getting about £400 a month, so we're happy with that.
0:30:36 > 0:30:38£400 a month on each of the four properties
0:30:38 > 0:30:43means a total of £1600 a month, or £19,200 a year,
0:30:43 > 0:30:46which is an impressive 12 per cent yield.
0:30:46 > 0:30:49So presumably they're happy to continue working together.
0:30:52 > 0:30:55- Can't get rid of him. He's family. - Yeah.
0:30:55 > 0:30:59- I guess we're stuck with each other.- Aye, for the long term.
0:31:03 > 0:31:06You have to praise them for what they've achieved here.
0:31:06 > 0:31:12Turning one house of God into four homes is pretty impressive.
0:31:23 > 0:31:27I'm in the green-belt suburb of Liberton,
0:31:27 > 0:31:30around four miles from Edinburgh city centre.
0:31:30 > 0:31:32It's a popular area for families
0:31:32 > 0:31:36and, with this beautiful landscape, you can see why.
0:31:36 > 0:31:40I'm here to see a property that had a guide price of 150,000 quid
0:31:40 > 0:31:44and was described as "an upper villa flat".
0:31:44 > 0:31:45What does that actually mean?
0:31:45 > 0:31:49It's a first-floor flat with an attic which spans the lower-floor flat.
0:31:49 > 0:31:52But the good news is it's got its own front door.
0:31:52 > 0:31:54We're certainly off to a good start.
0:31:54 > 0:31:57I wonder if it will be as impressive
0:31:57 > 0:31:59when I get to the top of the stairs.
0:32:00 > 0:32:02So what have we got?
0:32:02 > 0:32:05Actually, at first glance it looks pretty good.
0:32:05 > 0:32:07Nice and tidy condition. A little corridor here.
0:32:07 > 0:32:11Reception room there, but I think that could be a third bedroom.
0:32:11 > 0:32:13If you're thinking about taking in a lodger,
0:32:13 > 0:32:17why not have that as a bedroom and bring in a bit of extra income?
0:32:17 > 0:32:21Large lounge there. Lots of light pouring in. I like the bay window.
0:32:21 > 0:32:27In fact, the whole flat has this feeling of, well, the opposite of being cramped. It's lovely.
0:32:27 > 0:32:30Kitchen there. That could do with a bit of money spent on it,
0:32:30 > 0:32:31but apart from that...
0:32:31 > 0:32:35First of the two official bedrooms there, and then it continues.
0:32:35 > 0:32:37Great flat.
0:32:40 > 0:32:42So, both bedrooms are a good size
0:32:42 > 0:32:44and one of them has an en-suite.
0:32:44 > 0:32:47The main bathroom is in pretty good condition.
0:32:47 > 0:32:48Can this place get any better?
0:32:48 > 0:32:50MUSIC: "Amazing" by George Michael
0:32:50 > 0:32:53# I think it's amazing
0:32:54 > 0:32:56# I think it's amazing...#
0:32:57 > 0:33:00Huh! You open a door expecting to find a cupboard
0:33:00 > 0:33:02and there's a set of stairs.
0:33:02 > 0:33:07I can see straightaway that whatever is up here can't be classed as habitable space
0:33:07 > 0:33:09because these stairs are far too steep.
0:33:09 > 0:33:12They don't pass current Building Regulations,
0:33:12 > 0:33:15and I doubt there's things like fire escapes or soundproofing,
0:33:15 > 0:33:18that you'd need if you were to use this as, say, a bedroom.
0:33:18 > 0:33:22But somebody put floorboards down, they put in roof lights,
0:33:22 > 0:33:26and they've turned it into a pretty sophisticated storage area.
0:33:26 > 0:33:29For a flat like this, it's a nice additional thing to have.
0:33:29 > 0:33:33But don't you dare say there's an extra bedroom up here. There isn't.
0:33:33 > 0:33:36# It's not true...#
0:33:36 > 0:33:41You could spend money on doing a proper attic bedroom conversion,
0:33:41 > 0:33:42but that won't come cheap.
0:33:42 > 0:33:47It would also involve architects and satisfying Building Regulations.
0:33:47 > 0:33:49But think what you could end up with -
0:33:49 > 0:33:51a four- or even five-bedroom flat.
0:33:51 > 0:33:54The rewards could make it well worth doing.
0:33:56 > 0:33:59This flat just goes on and on.
0:33:59 > 0:34:02It's even got its own back garden. And that's not all.
0:34:02 > 0:34:06A real bonus to the flat is that it comes with this garage.
0:34:06 > 0:34:10It's detached from the property itself, but it's not too far away.
0:34:10 > 0:34:13So what would you do with it? You could keep it with the flat.
0:34:13 > 0:34:15Or why not think about selling it on?
0:34:15 > 0:34:18A garage around here would sell for around 20,000 quid.
0:34:18 > 0:34:20That's a nice bit of cash back.
0:34:20 > 0:34:23Or rent it out. Again, parking is at a premium.
0:34:23 > 0:34:26So, what do you reckon? 25, 30 quid a week?
0:34:26 > 0:34:28Either way, it's a money-making thing.
0:34:28 > 0:34:31It's almost a bonus to what is already a great place.
0:34:32 > 0:34:34Well, I've yet to find fault with this place,
0:34:34 > 0:34:37apart from sorting out that attic space.
0:34:37 > 0:34:40So I asked a local property expert for his thoughts on it.
0:34:40 > 0:34:43I was quite impressed by this property.
0:34:43 > 0:34:48It's nice and bright, there's an open aspect, it's got a garden.
0:34:48 > 0:34:50You've got four good, usable rooms
0:34:50 > 0:34:52on the first floor.
0:34:52 > 0:34:55The attic floor is an illegal conversion.
0:34:55 > 0:34:58So that needs sorting out in quite some detail.
0:34:58 > 0:35:02Whoever buys this should, as the first step,
0:35:02 > 0:35:05get an architect and an engineer
0:35:05 > 0:35:08to check the upper floor.
0:35:08 > 0:35:09To make the attic legal
0:35:09 > 0:35:12would probably cost between £10,000 and £12,000.
0:35:12 > 0:35:15But it would certainly add, in my view,
0:35:15 > 0:35:18at least £20,000 to the final value of the property.
0:35:20 > 0:35:23Remember, the guide price here was £150,000.
0:35:23 > 0:35:26How much could an investor hope to sell this place for
0:35:26 > 0:35:30if they sorted out the attic rooms and renovated the flat?
0:35:32 > 0:35:36If the shower room/WC is replaced and the kitchen is replaced
0:35:36 > 0:35:40and the whole thing's in good order and the attic conversion legal,
0:35:40 > 0:35:44I would expect the property to be worth £260,000.
0:35:44 > 0:35:45And that includes the garage.
0:35:45 > 0:35:50And there's the option to get £240,000 for the property
0:35:50 > 0:35:54and another £20,000 for the garage.
0:35:54 > 0:35:58You might even get an extra £5,000 for the flat
0:35:58 > 0:36:00if the flat and the garage were sold separately.
0:36:00 > 0:36:05It doesn't take a genius to see there's some money to be made here.
0:36:05 > 0:36:08Also, as it's so handy for Edinburgh city centre,
0:36:08 > 0:36:10it would be ideal for the rental market.
0:36:12 > 0:36:15After renovation, and with the attic having been made legal,
0:36:15 > 0:36:21I would expect this property to rent for £875 per calendar month.
0:36:22 > 0:36:25There really is not a lot to dislike with this flat.
0:36:25 > 0:36:27It's in great condition, good location,
0:36:27 > 0:36:31and you've got the benefit of both the garage and the garden.
0:36:31 > 0:36:34Let's see who fancied it when it went under the hammer.
0:36:36 > 0:36:38I'm looking for an opening bid here.
0:36:38 > 0:36:40Where do we start? I'm in your hands.
0:36:40 > 0:36:41£130,000?
0:36:41 > 0:36:45£130,000, straight in front of me. Thank you, sir. Bid of £130,000.
0:36:45 > 0:36:47£140,000 on the telephone.
0:36:47 > 0:36:50£150,000.
0:36:50 > 0:36:53New place, £155,000. Thank you at the back of the room.
0:36:53 > 0:36:55£160,000. £165,000.
0:36:55 > 0:36:58£170,000.
0:36:58 > 0:37:00£175,000.
0:37:00 > 0:37:02£180,000 it is.
0:37:02 > 0:37:04£180,000, in front of me.
0:37:04 > 0:37:06At £180,000. £181,000, back in.
0:37:06 > 0:37:08New place, £182,000.
0:37:08 > 0:37:09£183,000.
0:37:09 > 0:37:11£184,000, sir?
0:37:11 > 0:37:15£184,000. £185,000.
0:37:15 > 0:37:18Shake of the head. £185,000. It's still your bid.
0:37:18 > 0:37:22At £185,000. I'll give you the chance of 500. Sir?
0:37:22 > 0:37:24£185,500.
0:37:25 > 0:37:27£186,000? £186,000. He's back in.
0:37:27 > 0:37:29Definitely not this time?
0:37:29 > 0:37:32£186,000, then. Are we all done?
0:37:32 > 0:37:34Last chance.
0:37:35 > 0:37:38- HE BANGS THE GAVEL - Sold at £186,000. Congratulations, sir.
0:37:38 > 0:37:43That successful bid of £186,000 came from Arthur,
0:37:43 > 0:37:46who was bidding on behalf of his daughter, Amy.
0:37:46 > 0:37:49She's a department manager at a supermarket.
0:37:49 > 0:37:51So was this a bargain buy?
0:37:51 > 0:37:55She paid £36,000 over the guide price for this flat.
0:37:55 > 0:37:57But something tells me she's got a good deal.
0:37:57 > 0:38:00- Amy, lovely to meet you. Congratulations.- Thank you.
0:38:00 > 0:38:03- Tell me why you wanted to buy the house.- OK.
0:38:03 > 0:38:07My brother lives round the corner from the property so I know the area quite well,
0:38:07 > 0:38:11and I was visiting him one day and noticed the house was up for sale.
0:38:11 > 0:38:14When I looked closer it actually said it was up for auction.
0:38:14 > 0:38:15So I came and viewed it
0:38:15 > 0:38:18and then got excited about the prospect of owning it.
0:38:18 > 0:38:20Right. So what did you think when you walked in?
0:38:20 > 0:38:23I didn't know what to expect with an auction property
0:38:23 > 0:38:26because you see horror stories on the telly.
0:38:26 > 0:38:29Then, when we came and looked round, it was quite a surprise
0:38:29 > 0:38:31in terms of the condition and the size of it.
0:38:31 > 0:38:33So, yeah, pleasantly surprised.
0:38:33 > 0:38:36I can see Amy's already fallen in love with this flat.
0:38:36 > 0:38:40But she was surprised to come away from the auction as its new owner.
0:38:42 > 0:38:44At the auction, I went with my dad.
0:38:44 > 0:38:47I'd set a limit of what I could basically afford.
0:38:47 > 0:38:50- Which was what?- £181,000.
0:38:50 > 0:38:54I gave my dad the "You need to bid" because I would be too nervous
0:38:54 > 0:38:57and get scared of spending that amount of money.
0:38:57 > 0:38:59I gave him it, and it started creeping up.
0:38:59 > 0:39:01I thought I had it at about £181,000,
0:39:01 > 0:39:05and then somebody else new started bidding and he kept going.
0:39:05 > 0:39:09I thought, "What is he doing? I've not got any more money."
0:39:09 > 0:39:13Got it for £5,000 more than what I was thinking I'd pay for it.
0:39:14 > 0:39:17- HE BANGS THE GAVEL - Sold at £186,000. Congratulations, sir.
0:39:17 > 0:39:20But we've sorted that out between us.
0:39:20 > 0:39:24- That must have been an interesting conversation post auction. - It kind of was.
0:39:24 > 0:39:26But he'd come to look at the property with me
0:39:26 > 0:39:30and he thought it would be worth the extra £5,000 in the long term.
0:39:30 > 0:39:32Tell me a bit more about you.
0:39:32 > 0:39:35I'm currently living in Edinburgh.
0:39:35 > 0:39:39I have a flat round the corner that I've sold to enable me to buy this.
0:39:39 > 0:39:42So I'm looking to move into it by myself. May get a flatmate.
0:39:42 > 0:39:44Not quite sure yet what's going to happen.
0:39:44 > 0:39:48- What do you do?- I work in a supermarket.- Great. OK.
0:39:48 > 0:39:52- So you're doing this up as a place to live in. - For myself to move into.
0:39:52 > 0:39:55My plan is to move back to my parents' for a couple of months,
0:39:55 > 0:39:57do it up, and then move back into it.
0:39:59 > 0:40:01So Amy has shopped wisely.
0:40:01 > 0:40:07But how does she feel about paying £36,000 over the guide price?
0:40:09 > 0:40:11I actually think it's worth it because of the size,
0:40:11 > 0:40:14and there's potential in terms of converting the attic,
0:40:14 > 0:40:19which has been done, but I don't think it's been done through the formal channels,
0:40:19 > 0:40:21getting Building Control on it.
0:40:21 > 0:40:26So that potentially would put added value on later down the line if I choose to do that.
0:40:27 > 0:40:29The flat's in pretty good condition as it is.
0:40:29 > 0:40:31As Amy overspent at the auction,
0:40:31 > 0:40:34she really doesn't have much left to do it up.
0:40:35 > 0:40:37Short term, what will you do?
0:40:37 > 0:40:39I'll probably do a lot of cleaning to start with,
0:40:39 > 0:40:42see what I can keep in terms of carpets, that type of thing,
0:40:42 > 0:40:45and then it's going to be just decoration.
0:40:45 > 0:40:48I've got furniture that I'll probably bring with me
0:40:48 > 0:40:50and start from there.
0:40:50 > 0:40:51The bathroom and kitchen,
0:40:51 > 0:40:54when I get a chunk of money, I'll probably do them up.
0:40:54 > 0:40:57A garage comes with this property. What do you know about that?
0:40:57 > 0:41:01Actually, at the auction I was approached as I bought the property
0:41:01 > 0:41:05by a lady that has a flat or a property in this street,
0:41:05 > 0:41:09and she wanted to purchase the garage separately from me.
0:41:09 > 0:41:10So I've got her details.
0:41:10 > 0:41:13I'm weighing it up to see what I want to do with that,
0:41:13 > 0:41:15if I want to sell it off
0:41:15 > 0:41:17or whether I'm going to just keep it.
0:41:17 > 0:41:21Well, congratulations. We look forward to seeing how you get on.
0:41:21 > 0:41:23- Lovely to meet you. - You too. Cheers.
0:41:24 > 0:41:27Amy seems delighted with her new home,
0:41:27 > 0:41:29and quite rightly so.
0:41:29 > 0:41:31Not too much work to be done.
0:41:31 > 0:41:34The question is: is she going to sell that garage?
0:41:34 > 0:41:38My experience is you always regret those kind of things in the future,
0:41:38 > 0:41:40so I hope she holds on to it.
0:41:40 > 0:41:43What will she decide? You can find out later in the show.
0:41:46 > 0:41:48Well, time has flown by.
0:41:48 > 0:41:51But have the new owners had much success with their properties?
0:41:51 > 0:41:54Let's go back and check out what's been happening.
0:41:56 > 0:42:00Stoke-on-Trent is a collection of six older towns in the West Midlands.
0:42:00 > 0:42:03This three-bed semi in the suburbs of one of them, Bucknall,
0:42:03 > 0:42:05wasn't just a house and garden.
0:42:05 > 0:42:07It was a house, garden
0:42:07 > 0:42:09and potential building plot.
0:42:09 > 0:42:12MUSIC: "Good Thing" by Fine Young Cannibals
0:42:12 > 0:42:16But it was also situated next to the local electricity substation.
0:42:16 > 0:42:19However, for surveyor and construction firm manager Ian,
0:42:19 > 0:42:22the potential was too great to resist.
0:42:24 > 0:42:26What are you going to do with it?
0:42:26 > 0:42:30The house is going to be renovated and rented.
0:42:30 > 0:42:33The building plot it looks like I've sold already.
0:42:33 > 0:42:37- How much money have you been offered to sell that? - £35,000 for the plot.- Wow!
0:42:38 > 0:42:41So, having bought this auction lot for £95,000,
0:42:41 > 0:42:44armed with a 10 grand budget,
0:42:44 > 0:42:47Ian set about sparking the house back to life,
0:42:47 > 0:42:50while maximising the capacity of the garden plot.
0:42:50 > 0:42:54Now, three months later, we're back to see how he's got on.
0:43:02 > 0:43:06Well, it's a case of new doors and windows for the exterior...
0:43:10 > 0:43:14while inside, patterned carpets and textured wallpaper have given way
0:43:14 > 0:43:17to a more neutral, calmer look.
0:43:17 > 0:43:18Erm...
0:43:18 > 0:43:21We've taken the carpets up,
0:43:21 > 0:43:24levelled the floor because it was slightly out of level,
0:43:24 > 0:43:28redecorated, taken the lovely stone cladding off,
0:43:28 > 0:43:30together with the gas fire.
0:43:30 > 0:43:33But all that went fine in here.
0:43:34 > 0:43:38So it's out with the rough and in with the smooth.
0:43:42 > 0:43:47And that rather dated kitchen is now a thing of the past.
0:43:50 > 0:43:53We've taken out all the existing units,
0:43:53 > 0:43:56made good the plaster, retiled it,
0:43:56 > 0:44:00and we've discreetly hidden the meters in the cupboard
0:44:00 > 0:44:03because they were on show before.
0:44:03 > 0:44:07Oh, a new door, and obviously new windows throughout.
0:44:10 > 0:44:13The full refurbishment continues upstairs,
0:44:13 > 0:44:16as they've prepared the house for the rental market.
0:44:18 > 0:44:21The decoration, we just painted the walls.
0:44:21 > 0:44:24Got rid of all that flowery paper, got rid of the flowery carpets.
0:44:28 > 0:44:31Ian had originally thought about keeping those carpets.
0:44:31 > 0:44:35But, luckily for all of us, he was overruled by his wife Claire.
0:44:35 > 0:44:38He worked on the finish and the look of the place.
0:44:38 > 0:44:41I got involved with the kitchen and the bathroom,
0:44:41 > 0:44:46choosing the tiles, the vinyl, the carpets and things like that.
0:44:46 > 0:44:48Apart from the help of some joiners,
0:44:48 > 0:44:51most of the work was carried out by Ian and Claire.
0:44:51 > 0:44:56Presumably, with Ian being managing director of a construction company,
0:44:56 > 0:44:58he calls all the shots.
0:44:58 > 0:45:01No, I'm the boss.
0:45:01 > 0:45:04Well, whoever's top dog, between them they've managed
0:45:04 > 0:45:06to create a house ready for the rental market,
0:45:06 > 0:45:09with a new kitchen,
0:45:09 > 0:45:10refurbished bedrooms
0:45:10 > 0:45:13and contemporary bathroom suite.
0:45:13 > 0:45:16Of course, the auction lot came with more than just this house.
0:45:16 > 0:45:19MUSIC: "More Than This" by Roxy Music
0:45:20 > 0:45:24The land is sold. I got an offer the first time you came.
0:45:24 > 0:45:30It is sold now and planning has gone through for a detached house.
0:45:30 > 0:45:33Three bedrooms. It'll be slightly larger than this one.
0:45:33 > 0:45:35And there's a condition of the new building going in.
0:45:35 > 0:45:38A driveway's got to be put to this building as well.
0:45:39 > 0:45:43Ian bought the plot and house for £95,000,
0:45:43 > 0:45:46so, having sold the land for £35,000,
0:45:46 > 0:45:51in effect he's only paid 60 grand for the three-bed property.
0:45:51 > 0:45:55How much did he then have to spend to prepare it for rental?
0:45:55 > 0:45:57£8,670 approximately.
0:45:57 > 0:45:59So I'm under budget as well.
0:45:59 > 0:46:03There's quite a lot of bargains - windows, doors, that sort of thing.
0:46:03 > 0:46:06So one or two more savings than I thought we'd get.
0:46:09 > 0:46:12Ian may have spent £8,670
0:46:12 > 0:46:14on the property,
0:46:14 > 0:46:17but, as he's already got £35,000 back for the plot,
0:46:17 > 0:46:21he now has around 70 grand invested in the house.
0:46:21 > 0:46:23So was it a good purchase?
0:46:23 > 0:46:26What do two local estate agents think?
0:46:28 > 0:46:30I think the changes have been very good.
0:46:30 > 0:46:34It's all neutral, clean, fresh, all the way through.
0:46:34 > 0:46:36Obviously, new windows, new kitchen, new bathroom,
0:46:36 > 0:46:39basically everything that needs to be done.
0:46:39 > 0:46:41The house is really well presented.
0:46:41 > 0:46:43They've done a nice job on the finishes.
0:46:43 > 0:46:46Quite basic, but it will appeal to a wide range of buyers.
0:46:46 > 0:46:50There is three good-size usable bedrooms for the property.
0:46:50 > 0:46:54For this budget and price range it's definitely a selling point,
0:46:54 > 0:46:58because very often you get two bedrooms and a very small box room.
0:46:58 > 0:47:00Having the building plot next door
0:47:00 > 0:47:03will cause a bit of disturbance to the existing tenants.
0:47:03 > 0:47:06But if it's managed properly I don't see it being a problem.
0:47:06 > 0:47:09There may be some disruption, and the proximity of the new house
0:47:09 > 0:47:12may lower the value of Ian's £70,000 investment.
0:47:12 > 0:47:15But is there still a potential return?
0:47:15 > 0:47:19I would place this on the open market for sale purposes
0:47:19 > 0:47:21in the region of £90,000.
0:47:21 > 0:47:25At the moment I think this property would achieve around £85,000
0:47:25 > 0:47:26if he were to sell it.
0:47:26 > 0:47:30Quite happy with that. £85,000 to £90,000, with the market as it is.
0:47:30 > 0:47:33I would settle for that, and hopefully in the future
0:47:33 > 0:47:35prices will rise.
0:47:35 > 0:47:39But I will be renting and get a tenant as soon as possible.
0:47:39 > 0:47:43With a possible 15 to 20 grand resale profit
0:47:43 > 0:47:45it's pretty encouraging.
0:47:45 > 0:47:49But this purchase was all about putting it on the rental market.
0:47:51 > 0:47:54The demand for letting this property would be very high.
0:47:54 > 0:47:57It's ready to move into, done to a good standard.
0:47:57 > 0:48:02The income would be in the region of £450 to £500 per calendar month.
0:48:02 > 0:48:07If they were to rent this property, they would achieve in the region of £400 per calendar month.
0:48:07 > 0:48:10I was expecting about £425,
0:48:10 > 0:48:12so I suppose I'm in between.
0:48:13 > 0:48:18Even £400 a month is £4,800 a year
0:48:18 > 0:48:20or a steady seven per cent yield.
0:48:20 > 0:48:24So it will certainly pay its way and has allowed Ian to move on.
0:48:25 > 0:48:28Very pleased with the outcome of the whole scheme, really.
0:48:28 > 0:48:30And I would have thought,
0:48:30 > 0:48:33if something similar came up in the future,
0:48:33 > 0:48:35I would certainly buy something like this again.
0:48:40 > 0:48:43We're back to leafy Liberton in Edinburgh now
0:48:43 > 0:48:46to catch up with supermarket department manager Amy.
0:48:46 > 0:48:51She bought this two-bed flat for £186,000 at auction,
0:48:51 > 0:48:54although no-one was more surprised than she was.
0:48:54 > 0:48:57I'd set a limit of what I could basically afford.
0:48:57 > 0:49:00- Which was what?- £181,000.
0:49:00 > 0:49:04I gave my dad the "You need to bid" because I would be too nervous
0:49:04 > 0:49:06and it started creeping up,
0:49:06 > 0:49:07and he kept going.
0:49:07 > 0:49:11I thought, "What is he doing? I've not got any more money."
0:49:11 > 0:49:15Got it for £5,000 more than what I was thinking I'd pay for it.
0:49:15 > 0:49:17But we've sorted that out between us.
0:49:18 > 0:49:20The place was in pretty good condition.
0:49:20 > 0:49:23It had the bonuses of a garage,
0:49:23 > 0:49:24an overgrown garden
0:49:24 > 0:49:28and two potential extra bedrooms up in the attic,
0:49:28 > 0:49:32although the conversion wasn't done to Building Regulations standards.
0:49:32 > 0:49:34Amy's been in the flat for four months now,
0:49:34 > 0:49:37so let's see how she's settling in.
0:49:53 > 0:49:57The work Amy's done so far has been mainly cosmetic.
0:49:57 > 0:50:01But she's obviously been busy creating her dream home.
0:50:02 > 0:50:04So, in this room here
0:50:04 > 0:50:07what I've done is kept the colour scheme quite neutral.
0:50:07 > 0:50:08Got some new sofas.
0:50:08 > 0:50:12Because of the size of the room, they had to be that bit bigger.
0:50:12 > 0:50:15There was also a wooden surround on the fireplace,
0:50:15 > 0:50:17so what I've had to do is paint that white,
0:50:17 > 0:50:20cleaned up the marble that was there as well
0:50:20 > 0:50:22and got the fire gas-tested.
0:50:25 > 0:50:28Because she overspent at the auction, Amy's budget is limited.
0:50:28 > 0:50:31She decided to make up for her lack of cash
0:50:31 > 0:50:37with creativity, elbow grease and some lip-smacking interior design.
0:50:37 > 0:50:39# Kiss # SMOOCHY SOUND
0:50:41 > 0:50:44I went online and looked at wall stickers.
0:50:44 > 0:50:48And when I found them, there was a wide variety of things.
0:50:48 > 0:50:52I found things that were a bit quirky but sort of my taste, a bit modern,
0:50:52 > 0:50:53and could put them on the walls.
0:50:54 > 0:50:58And it's not just the decorating that Amy's lent her hand to.
0:50:58 > 0:51:01The garden was suffering from years of neglect,
0:51:01 > 0:51:03so she got stuck right in.
0:51:06 > 0:51:09The garden had severely overgrown.
0:51:09 > 0:51:12Trees had to be cut down.
0:51:12 > 0:51:15There was bramble and raspberry bushes that had overgrown so much
0:51:15 > 0:51:19that it wasn't even worth keeping anything that was in the garden.
0:51:19 > 0:51:22So I've put a membrane down and I had to put chips onto it
0:51:22 > 0:51:25so it'll be minimal in terms of having to do any gardening,
0:51:25 > 0:51:28because I've not got a lot of time out with work.
0:51:28 > 0:51:32And I'm on to the next part of the garden, this part here.
0:51:32 > 0:51:36I've taken the turf off, I'm going to put new turf down
0:51:36 > 0:51:38and some flower borders, that type of thing.
0:51:38 > 0:51:42Until she started the work, Amy didn't realise
0:51:42 > 0:51:45she was disturbing some of the existing residents.
0:51:45 > 0:51:47MUSIC: # Foxy Foxy" by Mott the Hoople
0:51:47 > 0:51:52There were foxes living in the shed, and fox cubs as well, so I had to do quite a lot of work.
0:51:52 > 0:51:56I had to wait quite late, until the end of August, to do that
0:51:56 > 0:51:59because the cubs had to be old enough to be able to move on naturally.
0:52:00 > 0:52:02As well as being at the auction,
0:52:02 > 0:52:05Amy's dad also helped out with a lot of work in the flat.
0:52:05 > 0:52:09There's still plenty of work to do, but Amy's making the best of things
0:52:09 > 0:52:13until her budget allows her to spice it up some more.
0:52:13 > 0:52:16I've still got to do the bathroom, the kitchen and the hall.
0:52:16 > 0:52:19I'm planning to do the hall in the new year
0:52:19 > 0:52:22and the bathroom and kitchen when I've got money
0:52:22 > 0:52:24to be able to do them as a one-off hit.
0:52:25 > 0:52:29But again, Amy's been very creative with her limited resources
0:52:29 > 0:52:33and has transformed the bathroom with tile paint
0:52:33 > 0:52:35for a low-cost, short-term option.
0:52:38 > 0:52:42She was actually offered £20,000 for her garage on the day of the auction
0:52:42 > 0:52:45but has decided to keep it for the time being.
0:52:45 > 0:52:48She's still mulling over plans for the second-floor rooms,
0:52:48 > 0:52:51that don't comply with Building Regulations.
0:52:53 > 0:52:56At the moment I've not done anything with the attic.
0:52:56 > 0:52:58It's as it was when I moved in.
0:52:58 > 0:53:01I just lock the door to the attic and pretend it's not there.
0:53:01 > 0:53:04It's a long-term project so I just forget what's up there.
0:53:04 > 0:53:08How much has she spent doing up her flat so far?
0:53:08 > 0:53:11Initial budget I thought was going to be about £5,000,
0:53:11 > 0:53:15and I'm a bit over that, I'm about £5,400.
0:53:15 > 0:53:20And that was basically for redecoration and buying some furnishings for the house.
0:53:20 > 0:53:23I haven't costed for the bathroom and the kitchen,
0:53:23 > 0:53:25but I knew they would come at a later stage.
0:53:25 > 0:53:28Along with the purchase price of £186,000,
0:53:28 > 0:53:34that means Amy has so far spent a total of £191,400.
0:53:34 > 0:53:36But has she added value?
0:53:39 > 0:53:42We invited two local experts along to find out.
0:53:49 > 0:53:51It's clearly a very manageable property,
0:53:51 > 0:53:54an extremely well-presented property.
0:53:54 > 0:53:55It's surprisingly spacious.
0:53:55 > 0:53:59Cleverly, the main living accommodation is at the rear of the house
0:53:59 > 0:54:03where it's quieter and has a green outlook over gardens.
0:54:03 > 0:54:08A noticeable improvement, which is still a work in progress, I have to say, is the garden.
0:54:08 > 0:54:11The owner has started but not completed
0:54:11 > 0:54:16what looks like an interesting and exciting garden project
0:54:16 > 0:54:19that should greatly add to the appeal of the property
0:54:19 > 0:54:20in time to come.
0:54:20 > 0:54:22So far so good.
0:54:22 > 0:54:24But let's talk figures.
0:54:24 > 0:54:27If we were to sell the property as currently arranged,
0:54:27 > 0:54:32we'd hope to achieve something in the region of £215,000.
0:54:32 > 0:54:35In the current market, I would estimate its worth to be
0:54:35 > 0:54:38in the region of £220,000 to £225,000.
0:54:38 > 0:54:42So, in the four months that Amy's been here,
0:54:42 > 0:54:46she could make a pre-tax profit of up to £33,500,
0:54:46 > 0:54:49minus the usual selling expenses.
0:54:49 > 0:54:52That's a nice surprise, considering the current market.
0:54:52 > 0:54:56I wasn't sure if anything would happen or if it might stay the same.
0:54:56 > 0:54:57So I'm pleased with that.
0:54:58 > 0:55:02What if Amy chose to become a landlord and rent out her flat?
0:55:04 > 0:55:06The difficulty is it's arranged as two bedrooms
0:55:06 > 0:55:11and, even though there's the ability to have another two sleeping quarters,
0:55:11 > 0:55:14it can't be offered as a four-bedroom prospect.
0:55:14 > 0:55:16As a result, that would limit the rental
0:55:16 > 0:55:19to somewhere around £800 per calendar month, in our view.
0:55:19 > 0:55:25In my view, it should be possible to achieve £750 per calendar month,
0:55:25 > 0:55:27perhaps slightly more.
0:55:28 > 0:55:30Amy always intended to make this flat her home,
0:55:30 > 0:55:35and, looking to the future, she could increase its value even more.
0:55:36 > 0:55:39The lady has gone probably about 70 per cent of the way
0:55:39 > 0:55:41to transforming the property.
0:55:41 > 0:55:44There are obvious areas for further improvement,
0:55:44 > 0:55:48notably the kitchen and potentially the attic rooms upstairs.
0:55:48 > 0:55:51I would estimate that, once the works had been done,
0:55:51 > 0:55:57you could probably achieve £240,000 for the whole property,
0:55:57 > 0:56:01with the attic converted to comply with current Building Regulations.
0:56:02 > 0:56:05Amy's done a great job with her flat so far.
0:56:05 > 0:56:07Judging by the work she's done here,
0:56:07 > 0:56:10she might have just what it takes to be a property developer,
0:56:10 > 0:56:14and I reckon she might have caught the property bug herself.
0:56:15 > 0:56:18I quite enjoyed learning how to do things.
0:56:18 > 0:56:21Every time I've had to get a tradesman in to do something,
0:56:21 > 0:56:23I've asked, "How do you do that? How do you fix it?"
0:56:23 > 0:56:27But also, my dad's an electrician, so he's changed numerous lights
0:56:27 > 0:56:31and had to do things in the house for me, so he's quite handy,
0:56:31 > 0:56:34and I've been pestering him to show me what to do.
0:56:38 > 0:56:42Well, whether it's a bungalow, a mansion or a plot of land,
0:56:42 > 0:56:45we'll be there to see what happens to it on Homes Under The Hammer.
0:56:45 > 0:56:48So make sure you join us next time.
0:56:48 > 0:56:49- Goodbye for now.- Goodbye.
0:57:11 > 0:57:13Subtitles by Red Bee Media Ltd
0:57:13 > 0:57:15E-mail subtitling@bbc.co.uk