0:00:02 > 0:00:04Even in this volatile market,
0:00:04 > 0:00:07many of us are still hooked on houses.
0:00:07 > 0:00:11We are, especially when it comes to buying properties at auction,
0:00:11 > 0:00:15where thousands of people every year buy their homes under the hammer.
0:00:41 > 0:00:45We are constantly amazed by stories we follow from the auction room -
0:00:45 > 0:00:49real-life drama and some real-life successes.
0:00:49 > 0:00:55We have found three more properties, so what stories do THEY have to tell?
0:00:56 > 0:01:02'I'll be in London - prime location but maybe not a prime property.'
0:01:02 > 0:01:05In need of a bit of care and attention.
0:01:06 > 0:01:11'This bungalow in Hampshire is not all it's cracked up to be.'
0:01:11 > 0:01:13They are everywhere!
0:01:14 > 0:01:19'And you'll need green fingers to get into this cottage in Norfolk.'
0:01:19 > 0:01:23How about THAT for an entrance porch? An old greenhouse.
0:01:24 > 0:01:29'We'll find out who bought them and what they paid for them
0:01:29 > 0:01:32'when they went under the hammer.'
0:01:38 > 0:01:40'First off, I'm in the capital city.
0:01:40 > 0:01:44'Just a few miles from Westminster is up-and-coming Clerkenwell.
0:01:44 > 0:01:50'As you'd expect, in this part of the country, house prices are at a premium.'
0:01:50 > 0:01:53The property I'm here to see is Georgian.
0:01:53 > 0:01:57I love Georgian properties. It's three storeys.
0:01:57 > 0:02:00Had a guide price of 475,000 quid.
0:02:00 > 0:02:06It sounds like a lot of money however, around here, a one-bedroom flat can go for about 300.
0:02:06 > 0:02:10Suddenly, it sounds very interesting.
0:02:10 > 0:02:13'Those ugly steel shutters
0:02:13 > 0:02:16'can't hide the Georgian charm of this terraced house.
0:02:16 > 0:02:21'It's a listed building in a conservation area
0:02:21 > 0:02:27'so there will be plenty of rules when it comes to renovating.
0:02:27 > 0:02:30'There are two flats in this house,
0:02:30 > 0:02:35'one at ground level and one spread over the top two floors.'
0:02:35 > 0:02:41Not quite the grand Georgian entrance with sweeping staircase I was hoping for.
0:02:41 > 0:02:46Not to worry. Let's hope the flats get better. First flat is here.
0:02:47 > 0:02:50Well, it's not huge but let's see what we've got.
0:02:50 > 0:02:52Main living area here.
0:02:52 > 0:02:55Reasonable sized kitchen.
0:02:55 > 0:02:59Although definitely in need of a bit of care and attention.
0:02:59 > 0:03:03Then the flat disappears off that way.
0:03:03 > 0:03:07I don't like the fact that, in a small flat, which this is,
0:03:07 > 0:03:10so much is taken up with corridor.
0:03:10 > 0:03:14Doesn't seem to be a good use of space. Bathroom there.
0:03:14 > 0:03:18One bedroom there. Neither are particularly large.
0:03:18 > 0:03:20It's not stacking up that well.
0:03:20 > 0:03:24Don't know about stacking up. How about cracking up? Look at that.
0:03:24 > 0:03:29Here's something very interesting. This is a crack down the wall.
0:03:29 > 0:03:33There's a strange remnant of something on here.
0:03:33 > 0:03:36I reckon they had a surveyor come
0:03:36 > 0:03:40and he's put a special device which monitors for subsidence.
0:03:40 > 0:03:46It's a strip that shows, over time, whether the crack is getting worse.
0:03:46 > 0:03:48You want to know what he found.
0:03:48 > 0:03:51I wouldn't buy this until I'd seen that report.
0:03:54 > 0:03:57'The flat's pretty small and restricted.
0:03:57 > 0:04:01'Any developer would have to be creative.
0:04:01 > 0:04:04'It does have a little back garden,
0:04:04 > 0:04:08'which could lend itself to an extension.'
0:04:08 > 0:04:13Thankfully, once you head upstairs, the house starts to redeem itself.
0:04:13 > 0:04:17That's where the second flat is. Much better size, over two floors.
0:04:17 > 0:04:21You've got a living room area. Not too bad a size.
0:04:21 > 0:04:23Then through into the kitchen.
0:04:23 > 0:04:27It does need, like the other one, complete refurbishment,
0:04:27 > 0:04:30but it's a much more liveable size.
0:04:30 > 0:04:36It does benefit from a roof terrace, which is a real bonus in London.
0:04:38 > 0:04:43'Both the bedroom and bathroom are on the top floor.
0:04:43 > 0:04:48'It looks like someone's been trying their hand at some DIY demolition.
0:04:48 > 0:04:53'Time for a local estate agent to give us his opinion.'
0:04:54 > 0:04:59The owners need to spend a considerable amount of money.
0:04:59 > 0:05:03Certainly new kitchens, bathrooms, flooring, walling.
0:05:03 > 0:05:06There's always hidden extras that might crop up
0:05:06 > 0:05:09when they start the refurbishment.
0:05:09 > 0:05:12'Bearing in mind the guide price of 475,000,
0:05:12 > 0:05:17'how much could the two flats be worth when the work's been done?'
0:05:17 > 0:05:22If the ground floor was renovated, in the region of £375,000.
0:05:22 > 0:05:26The upstairs apartment, in the region of £425,000.
0:05:26 > 0:05:30'Of course, London has a vibrant rental market.
0:05:30 > 0:05:33'What could these flats pull in?'
0:05:33 > 0:05:39After refurbishment, the ground floor flat in the region of £350 per week,
0:05:39 > 0:05:43with upstairs in the region of £400 per week.
0:05:44 > 0:05:48A property that's almost worth its weight in gold.
0:05:48 > 0:05:51Keep it as two flats, you've got a great rental machine.
0:05:51 > 0:05:56A few issues regarding listed status but, all in all, great to go for.
0:05:56 > 0:06:01Let's see who fancied it when it went under the hammer.
0:06:01 > 0:06:07Great property. Great location. 500? Don't mess around on this.
0:06:08 > 0:06:10500. 510?
0:06:10 > 0:06:12520?
0:06:12 > 0:06:16520. 530? 540?
0:06:18 > 0:06:21535, yeah? OK, 535. 540?
0:06:22 > 0:06:25545? 550?
0:06:25 > 0:06:29- 551? > - There's always a chancer!
0:06:29 > 0:06:32551. 552? 553?
0:06:34 > 0:06:36554? 555?
0:06:37 > 0:06:41556? 557?
0:06:41 > 0:06:44No? 557, new place.
0:06:44 > 0:06:46560?
0:06:46 > 0:06:48565?
0:06:48 > 0:06:51You want to come in? 570?
0:06:51 > 0:06:54575? 580,000?
0:06:54 > 0:06:57585?
0:06:57 > 0:06:58590?
0:06:58 > 0:07:01591? 592?
0:07:01 > 0:07:03No?
0:07:03 > 0:07:05591 for the first.
0:07:05 > 0:07:08591 for the second.
0:07:08 > 0:07:10591... 592.
0:07:10 > 0:07:12More competition. 593?
0:07:12 > 0:07:15594? 595?
0:07:15 > 0:07:18596? 597?
0:07:18 > 0:07:20598?
0:07:20 > 0:07:22599?
0:07:22 > 0:07:24600,000? 601?
0:07:24 > 0:07:26602?
0:07:26 > 0:07:29No? 601 for the first, the second...
0:07:29 > 0:07:31Sold. It's a good buy, that.
0:07:31 > 0:07:35'That hard-fought battle was eventually won by George,
0:07:35 > 0:07:39'with his final bid of £601,000 -
0:07:39 > 0:07:44'a whopping 126 grand over the guide price.
0:07:44 > 0:07:47'I met him to discuss his plans.'
0:07:47 > 0:07:51- George, congratulations.- Thank you. - Why did you want to buy this?
0:07:51 > 0:07:57I haven't actually bought it. My two sons have bought it with a friend.
0:07:57 > 0:08:02The three of them are buying it. It's their first joint development.
0:08:02 > 0:08:08I've helped them financially, as their friend's father helped him, financially.
0:08:08 > 0:08:13- How much influence did you have on what they bought?- Quite a lot.
0:08:13 > 0:08:16I've got some experience in property development.
0:08:16 > 0:08:20I was looking for a good property in a great area.
0:08:20 > 0:08:25With the market as it is, a London property, you can't go too wrong.
0:08:25 > 0:08:31'So there are actually five people involved - George and his two sons, Alex and Fraser,
0:08:31 > 0:08:35'their friend Clark and his dad, Pete.
0:08:35 > 0:08:39'The three boys are being given a leg-up
0:08:39 > 0:08:42'by their more experienced developer dads.'
0:08:42 > 0:08:46The issues are cosmetic. There's no structural issues.
0:08:46 > 0:08:50There is a remains, what looks to me, of some kind of testing
0:08:50 > 0:08:53for subsidence.
0:08:53 > 0:08:55We've had the architect down here.
0:08:55 > 0:08:59There's a little bit of movement under a lintel over a window,
0:08:59 > 0:09:03which caused some cracking downstairs.
0:09:03 > 0:09:06Nothing that can't be sorted out.
0:09:06 > 0:09:09We're looking to make the upstairs flat,
0:09:09 > 0:09:12which is over two floors, a two-bedroom flat.
0:09:12 > 0:09:15That's got a big terrace.
0:09:15 > 0:09:19The ground floor flat, we're going to extend
0:09:19 > 0:09:21and make a very big reception area.
0:09:21 > 0:09:27If we get permission, we're looking to spend 80k, something like that.
0:09:27 > 0:09:33- I should go and have a chat with your lads.- OK. Great.- Well done.
0:09:33 > 0:09:40'George's eldest son, Alex, and his co-investor friend Clark have both come along.
0:09:40 > 0:09:46'The third member of the younger team, Fraser, is working for an estate agency.
0:09:46 > 0:09:51'Alex and Clark have taken a riskier career path.'
0:09:51 > 0:09:54- Professional poker players.- Wow.
0:09:54 > 0:09:58That's your job? A business card would say "poker player"?
0:09:58 > 0:10:02- PPP, as we like to say. - Professional Poker Player!
0:10:02 > 0:10:05- Oh, yeah. Please! Not amateurs! - Yeah.
0:10:05 > 0:10:11- Is that where you make your money? - Yes.- You can make guaranteed money playing poker?
0:10:11 > 0:10:18- If you're good enough, you could say it's guaranteed.- You've just got to win more than you lose.
0:10:18 > 0:10:20Do you see this as a gamble?
0:10:20 > 0:10:27Of course. Anything's a gamble in terms of investment. Anything could happen. Hopefully, a good one.
0:10:28 > 0:10:32'This building could be a profitable gamble.'
0:10:32 > 0:10:37# I'm a roving gambler I gamble all around... #
0:10:37 > 0:10:40'It cost £601,000 to buy the place.
0:10:40 > 0:10:44'The team plan to spend around £80,000 on the work
0:10:44 > 0:10:47'and get it finished within six months.
0:10:47 > 0:10:54'Luckily for the lads, the ace up their sleeve is both of their dads' years of experience.'
0:10:54 > 0:10:58At what point did you bring in your fathers?
0:10:58 > 0:11:02Pretty much at the beginning, due to the experience they both have,
0:11:02 > 0:11:08and their encouragement to look in the auctions rather than estate agencies.
0:11:08 > 0:11:13Cos you might find a better property in the area. So, from the start.
0:11:13 > 0:11:17How is it going to work in terms of what you'll physically do?
0:11:17 > 0:11:22- What's your involvement going to be? - We'll leave it up to the builders.
0:11:22 > 0:11:27It's going to be a high-spec finish so if we did bits and pieces...
0:11:27 > 0:11:30We might do the clearing out at the beginning,
0:11:30 > 0:11:37but any proper work - plastering, putting the kitchen in - it's better to get professionals to do.
0:11:37 > 0:11:41Is this a start of a property developing career for you both?
0:11:41 > 0:11:45It would be nice to take the profit from this and move on.
0:11:45 > 0:11:48Keep going till we're millionaires!
0:11:48 > 0:11:54Good luck. I don't think it's too much of a risk but we look forward to seeing how you get on.
0:11:54 > 0:11:57So, what's on the CARDS for George and the boys?
0:11:57 > 0:12:00Will they be FLUSHED with success?
0:12:00 > 0:12:05A lot of people involved in this project and that can bring problems.
0:12:05 > 0:12:08Find out how they get on later in the show.
0:12:10 > 0:12:15Ten minutes from the centre of Southampton is Bitterne Park.
0:12:15 > 0:12:20On the River Itchen, the suburb was developed in the 19th century,
0:12:20 > 0:12:24on sloping parkland which formed part of Bitterne Manor.
0:12:24 > 0:12:29It is a lovely spot and the property today is just a few roads away.
0:12:34 > 0:12:40'With walks along the river, moorings and a mainline station,
0:12:40 > 0:12:44'this place ticks a lot of boxes.'
0:12:45 > 0:12:50Many thousands of bungalows were built during the inter-war period,
0:12:50 > 0:12:54springing up in previously rural suburbs.
0:12:54 > 0:12:59They've had critics who coined the scathing phrase "bungaloid growth"
0:12:59 > 0:13:02to describe their invasion.
0:13:02 > 0:13:05They are often boxy and unadventurous
0:13:05 > 0:13:08but you get good square footage and a garden,
0:13:08 > 0:13:11usually in desirable locations.
0:13:11 > 0:13:15So open your bunged-up mind for our lot today. It IS a bungalow.
0:13:15 > 0:13:20It's got three bedrooms and a guide price of only 100,000.
0:13:23 > 0:13:27'That guide price is certainly an attention grabber.
0:13:27 > 0:13:30'Built in the 1950s, it has off-street parking,
0:13:30 > 0:13:33'a small garden and hilltop views of the city.
0:13:33 > 0:13:36'I wonder if the interior is as impressive.'
0:13:38 > 0:13:40At the front of this property,
0:13:40 > 0:13:43you've got what I presume is a bedroom.
0:13:43 > 0:13:46It goes through into the equally small room.
0:13:46 > 0:13:49But I think this is a partition wall.
0:13:49 > 0:13:54Somebody sub-divided this and it really doesn't work.
0:13:54 > 0:13:58You've only got this access, and that's too small as a living room.
0:13:58 > 0:14:01You either need to make this all one room
0:14:01 > 0:14:05or move this entrance so you have access from the hall.
0:14:05 > 0:14:10Both rooms are a slightly odd shape. You've got these corner windows.
0:14:10 > 0:14:12Slightly odd start.
0:14:12 > 0:14:16'There's another small bedroom to the rear.
0:14:16 > 0:14:21'Although I've seen worse layouts, this place needs sorting out.
0:14:21 > 0:14:25'It can't seem to decide whether it's two or three bedrooms.'
0:14:25 > 0:14:29# ..Been dazed and confused for so long it's not true... #
0:14:29 > 0:14:33The kitchen has a nice area for a table here,
0:14:33 > 0:14:38doors leading out to the garden, but I'd like to open up this room here
0:14:38 > 0:14:41and have the area as one big space
0:14:41 > 0:14:44to make the most of the view.
0:14:44 > 0:14:50I've got a sinking feeling that pokey space isn't all these rooms have in common.
0:14:50 > 0:14:52Look at these cracks.
0:14:52 > 0:14:54And up there.
0:14:55 > 0:14:57They are everywhere.
0:15:09 > 0:15:15'As if on a mission for equality, each room has a multitude of cracks.
0:15:15 > 0:15:22'For a 60-year-old house, a few cracks in the plasterwork aren't a massive concern.
0:15:22 > 0:15:28'When you find a place sporting as many as this, you need to ask some serious questions.'
0:15:28 > 0:15:32Remember that little piece of history I told you earlier?
0:15:32 > 0:15:36The area was developed on sloping parkland.
0:15:36 > 0:15:40That takes a sinister turn when you see windows like these.
0:15:40 > 0:15:43I've never seen anything like it.
0:15:43 > 0:15:46The windows are straight
0:15:46 > 0:15:50but the bungalow appears to be slipping down this hill.
0:15:50 > 0:15:54Yes, you've guessed it. This house has got subsidence.
0:15:54 > 0:15:58The slope in the land and often-inadequate foundations
0:15:58 > 0:16:03mean this area is more susceptible than other parts of Southampton.
0:16:03 > 0:16:07So far, so worrying. You can forget a mortgage on this place.
0:16:07 > 0:16:12This lot is for cash buyers only, and ones with deep pockets at that.
0:16:12 > 0:16:16This problem is an expensive one to fix.
0:16:16 > 0:16:21# There's danger, danger Danger ahead beware! #
0:16:22 > 0:16:27'It's like the house has had one tipple too many.
0:16:27 > 0:16:31'The scary thing is, this isn't obvious from outside.
0:16:31 > 0:16:36'A lick of paint before an auction has fooled many amateur developers.
0:16:36 > 0:16:39'I'd get a survey done straightaway.'
0:16:40 > 0:16:44# ..There's danger ahead, beware Beware... #
0:16:44 > 0:16:50'This might be serious enough to warrant knocking the place down
0:16:50 > 0:16:52'and starting all over again.
0:16:52 > 0:16:56'It's time to call in a local estate agent.'
0:16:58 > 0:16:59My advice would probably be
0:16:59 > 0:17:04to let the property out with a minor upgrade, possibly.
0:17:04 > 0:17:10Have a structural engineer find out what's right and wrong then act on that.
0:17:10 > 0:17:16There's a possible resale value later. Currently, you're best off letting the property out.
0:17:16 > 0:17:20'What kind of income could that bring?'
0:17:20 > 0:17:24You'd look to rent this property around £750 per calendar month.
0:17:24 > 0:17:28'Food for thought, but still a risky venture.
0:17:28 > 0:17:33'What about knocking down the bungalow and starting over again?'
0:17:33 > 0:17:37The resale for a new-build on this plot
0:17:37 > 0:17:41would probably be worth between £200 and £225,000.
0:17:41 > 0:17:47'And if you tried to rescue the existing structure by underpinning
0:17:47 > 0:17:49'and restoring the bungalow?'
0:17:49 > 0:17:56In today's market, I consider this property to be worth, in A1 condition, £170,000 to £175,000.
0:17:58 > 0:18:00It's in a good location.
0:18:00 > 0:18:04Bungalows hold their value in tricky markets.
0:18:04 > 0:18:09But without the subsidence, there's work to do to get the best from this property.
0:18:09 > 0:18:15Whoever takes this one on needs to be under no illusions. This is a big job.
0:18:15 > 0:18:18Let's see who that brave soul was.
0:18:19 > 0:18:24A three-bedroom detached bungalow. Requires some updating.
0:18:24 > 0:18:30I will give you this opportunity and open the bidding at just £80,000.
0:18:30 > 0:18:33Thank you, sir. 80,000 I have got sat down.
0:18:33 > 0:18:3585,000. Now need 86.
0:18:35 > 0:18:4186 he does. 87,000. £87,000, then.
0:18:41 > 0:18:4587,000 once.
0:18:45 > 0:18:4787,000 twice.
0:18:48 > 0:18:50500.
0:18:50 > 0:18:5287,500
0:18:52 > 0:18:5588,000?
0:18:55 > 0:18:5788,000. 88 and a half?
0:18:57 > 0:19:0088,500. 89?
0:19:01 > 0:19:0389,500?
0:19:03 > 0:19:06Round it up to 90, sir? Might do the job.
0:19:06 > 0:19:1190,000 I have bid. They're shaking their head. 90,00 I have once.
0:19:11 > 0:19:1390,000 twice.
0:19:14 > 0:19:1890,000 for the third and final time.
0:19:18 > 0:19:20Well done. Your property.
0:19:24 > 0:19:28'The new owner is Peter, a kitchen-fitter from Southampton.
0:19:28 > 0:19:36'This father of three is a busy man so he wanted to come away from the auction with a property to do up.
0:19:36 > 0:19:41'And what a project he's got! I met up with him to find out more.'
0:19:42 > 0:19:47What I want to know is why did you want to buy this property?
0:19:47 > 0:19:49I'd viewed a few other properties.
0:19:49 > 0:19:56I went to the auction with a view of buying them and they sold for more than I wanted to pay.
0:19:56 > 0:20:02Saw this in the catalogue. It was a property I could afford to buy.
0:20:02 > 0:20:04So I bought the place...
0:20:04 > 0:20:10Stop right there! You bought this by just looking at a photograph?
0:20:10 > 0:20:13Yeah. Well, I knew the road.
0:20:13 > 0:20:18It said in the catalogue "cash buyers only" and that you should do your own investigation.
0:20:18 > 0:20:22- You didn't do any investigation, a survey.- No.
0:20:22 > 0:20:26Tell me about the house structurally. What do you know?
0:20:26 > 0:20:31Er, I know that the foundations aren't man enough to hold it up.
0:20:31 > 0:20:34- Are we talking the big S word?- Yeah.
0:20:34 > 0:20:39It's definitely subsiding. You can look around the place.
0:20:39 > 0:20:43There's huge amounts of movement.
0:20:43 > 0:20:49When I realised how bad it was I thought, "Looks like I might have to knock it down."
0:20:49 > 0:20:53- I think it's a building plot, basically.- No?- Yeah.
0:20:53 > 0:20:59You've gone from wanting to buy a house to renovate to buying a plot to build a whole house!
0:20:59 > 0:21:03- It's exciting. - Look how your week's changed!
0:21:06 > 0:21:12'Peter's rolling with the punches and has already had a structural surveyor round
0:21:12 > 0:21:14'to confirm his suspicions.
0:21:14 > 0:21:18'He wanted a project, but a demolition job?
0:21:18 > 0:21:22'That's a scary and costly prospect for any developer.'
0:21:22 > 0:21:25I've got enough money to get a shell up, I reckon.
0:21:25 > 0:21:31I can do all the rest of it, and do that at a time that suits myself.
0:21:31 > 0:21:35That really is the way to go. It could be good news for you.
0:21:35 > 0:21:40Any house with subsidence will always have that stigma attached.
0:21:40 > 0:21:43You'll never find it easy to insure it,
0:21:43 > 0:21:47get a mortgage on it, when it's had repairs done to it.
0:21:47 > 0:21:52- Have you thought about your demolition costs?- No, no, no.
0:21:52 > 0:21:57- But it's a bungalow. You can do it from a pair of steps!- Get away!
0:21:57 > 0:21:59I'm going to see you with a sledgehammer?
0:21:59 > 0:22:03It's in the back of the car. I'm ready to go.
0:22:05 > 0:22:09'Peter's spent 90 grand buying the property.
0:22:09 > 0:22:14'Building a brand new house is a very expensive proposition.
0:22:14 > 0:22:18'Will there be any equity left when he's finished?'
0:22:18 > 0:22:22- It's going to cost about 60,000... - To build a whole house?- Yeah.
0:22:22 > 0:22:27If I'm doing the interior stuff, I think that's what it should cost.
0:22:27 > 0:22:31'If Peter does achieve the build within his budget,
0:22:31 > 0:22:36'the new house could be worth as much as 225,000.
0:22:36 > 0:22:41'He's a single parent, so tries not to work over the school holidays.
0:22:41 > 0:22:46'But he'll have plenty of time to crack on and, luckily,
0:22:46 > 0:22:51'doesn't have to be too strict about his timescales, either.'
0:22:51 > 0:22:56Let's just say I'm going to leave it six months. That'll do plans.
0:22:56 > 0:23:00Once I've started, the shell will go up pretty quick.
0:23:00 > 0:23:03That's going to be another month or so.
0:23:03 > 0:23:07Then I'll leave myself another six months to finish the interior.
0:23:07 > 0:23:1012, 15 months. Something like that.
0:23:13 > 0:23:15What a difference a day makes.
0:23:15 > 0:23:19In the blink of an eye, Peter has gone from a renovation job
0:23:19 > 0:23:24to a full-on new-build and he wasn't even intending to buy this property.
0:23:24 > 0:23:30He's very positive, but to do it for 60,000, he'd need to be.
0:23:30 > 0:23:33I can't wait to find out how it goes.
0:23:34 > 0:23:38'Coming up, this century-old cottage in Norfolk
0:23:38 > 0:23:40'takes open-plan to a new level.'
0:23:40 > 0:23:43THAT is really, really weird.
0:23:44 > 0:23:50'We return to Hampshire to discover the fate of the subsiding bungalow.'
0:23:50 > 0:23:55If the walls start cracking again, I'll have to review the situation.
0:23:56 > 0:24:01'First, how our development team capitalised on their London investment.'
0:24:01 > 0:24:05We stand back and watch the money roll in!
0:24:09 > 0:24:12'We're back in Clerkenwell, London,
0:24:12 > 0:24:17'to catch up with George and his extensive team of developers.
0:24:17 > 0:24:22'They bought this listed Georgian terrace house for £601,000.
0:24:22 > 0:24:28'Inside, there were two one-bedroom flats begging to be renovated.
0:24:28 > 0:24:35'The investors consisted of property developer George, his two sons Alex and Fraser, their friend Clark
0:24:35 > 0:24:37'and his dad Pete.
0:24:37 > 0:24:40'Clark and Alex, professional poker players,
0:24:40 > 0:24:46'were ready to stake the team's money on this development being a success.'
0:24:46 > 0:24:49Do you see this as a gamble?
0:24:49 > 0:24:54Course. Anything's a gamble in terms of investment. Anything can happen.
0:24:54 > 0:24:59'The master plan was to extend the ground floor flat
0:24:59 > 0:25:02'and create a second bedroom in the upper flat.
0:25:02 > 0:25:07'We're back eight months later to see how they've got on.
0:25:18 > 0:25:22'Well, they've extended the ground floor apartment...
0:25:24 > 0:25:30'..to give it an airy open-plan layout complete with terrace.'
0:25:31 > 0:25:37We got planning permission for an extension, which we're standing in.
0:25:37 > 0:25:41It has made this one-bedroom flat really spacious.
0:25:41 > 0:25:44You can open up the whole of the flat
0:25:44 > 0:25:48from the front, to the back of the garden.
0:25:48 > 0:25:52'The old sitting room will be the bedroom.
0:25:55 > 0:26:01'And what was the kitchen is now a sleek en suite bathroom.
0:26:02 > 0:26:07'They continued the open-plan theme upstairs in the second flat,
0:26:07 > 0:26:12'by making the lounge and kitchen into one.
0:26:16 > 0:26:22'On the top floor, they reorganised space to create a second bedroom...
0:26:25 > 0:26:29'..and a stylish, if somewhat smaller, bathroom.'
0:26:31 > 0:26:34It was a one-bedroom flat on two floors.
0:26:34 > 0:26:39We reconfigured the top floor to get two good sized bedrooms.
0:26:39 > 0:26:44We had a few difficulties with the listed building people.
0:26:44 > 0:26:47We had to conform to what they wanted.
0:26:47 > 0:26:52'The team paid £601,000 for this listed Georgian property.
0:26:52 > 0:26:56'After six months' renovation work, are they on budget?'
0:26:56 > 0:27:00We had two budgets, one with and one without an extension.
0:27:00 > 0:27:06The one with the extension, our budget was about £75,000, £80,000.
0:27:06 > 0:27:08We've pretty much come in on budget.
0:27:08 > 0:27:13We might be 5k over, perhaps come in at £85,000.
0:27:13 > 0:27:18There's still a little bit of work. Not a lot. Just a bit of painting.
0:27:20 > 0:27:26'The majority of the work has been overseen by George's youngest son, Fraser.
0:27:26 > 0:27:30'He's worked closely with John, their builder.'
0:27:30 > 0:27:35We've relied on John pretty heavily. He's been based here full time.
0:27:35 > 0:27:38Doing seven-day weeks a lot of the time.
0:27:38 > 0:27:43He's been project managing, making sure materials turned up on time.
0:27:43 > 0:27:47Doing everything, basically. I've just been popping in day-to-day.
0:27:47 > 0:27:52I've worked for Liz and George before and that's been really good.
0:27:52 > 0:27:58Working for Fraser's been really good as well. I haven't seen much of the other two, though!
0:28:00 > 0:28:05'Professional poker players Alex and Clark were the silent partners,
0:28:05 > 0:28:09'and they've kept themselves well out of the way.'
0:28:09 > 0:28:12There were so many partners in this project
0:28:12 > 0:28:15that we didn't really need to get involved.
0:28:15 > 0:28:20We had builders doing building work, the architect doing the drawings.
0:28:20 > 0:28:25We just sat back and watched the money roll in.
0:28:25 > 0:28:30'But WILL the money roll in or are the odds stacked against them?
0:28:30 > 0:28:34'The five-strong team bought the property for £601,000.
0:28:34 > 0:28:38'Add to that the 4% stamp duty of £24,000
0:28:38 > 0:28:41'plus the renovation budget of 85 grand
0:28:41 > 0:28:47'and that's a total outlay of £715,000.
0:28:47 > 0:28:52'Do two local property experts think they've invested wisely?'
0:28:52 > 0:28:55I'm actually very impressed.
0:28:55 > 0:28:59They've done the best they can with what they've got.
0:28:59 > 0:29:02The extension massively opens up the ground floor,
0:29:02 > 0:29:05which was a bit of a worry before.
0:29:05 > 0:29:10It's nice and bright so it's going to be very attractive to people.
0:29:10 > 0:29:15It's done to a good standard. Location's beneficial.
0:29:15 > 0:29:17The outside space is a big plus.
0:29:17 > 0:29:20I can't see them taking long to sell.
0:29:20 > 0:29:23'Great first impressions but what about the figures?
0:29:23 > 0:29:26'First, the ground floor flat.'
0:29:26 > 0:29:31I would put the ground floor one-bed on the market for £420,000,
0:29:31 > 0:29:34to achieve something around the £400,000 mark.
0:29:34 > 0:29:39The ground floor, you'd be looking between £330,000 and £350,000.
0:29:39 > 0:29:43'Is this is line with what George was hoping for?'
0:29:43 > 0:29:48We've had a valuation and it's about 375 for the downstairs one.
0:29:48 > 0:29:52That's halfway between the two, really.
0:29:52 > 0:29:56'What about the two-bed flat? Well, opinion varied here,
0:29:56 > 0:30:00'with the market being so hard to judge at the moment.
0:30:00 > 0:30:05'The returning estate agent valued it at £485,000,
0:30:05 > 0:30:09'whilst the other estimated between £430,000 and £450,000.'
0:30:09 > 0:30:16Well, 485 ties in very much with our valuation.
0:30:16 > 0:30:23So, the returning agent at 485 is pretty much in line with ours.
0:30:23 > 0:30:27'According to those figures, the combined values of both flats
0:30:27 > 0:30:32'is between £760,000 and £885,000.
0:30:32 > 0:30:39'This could mean a gross profit of between £50,000 and £175,000 - quite a difference!
0:30:39 > 0:30:42'What about the rental option?'
0:30:42 > 0:30:47The ground floor flat's somewhere in the region of £400 per week.
0:30:47 > 0:30:51The two-bedroom upstairs, in the region of £440 per week.
0:30:51 > 0:30:54For the one-bed, in the region of £325 per week.
0:30:54 > 0:30:59For the two-bed, you'd be looking closer to 350 to 375.
0:30:59 > 0:31:04'That's a potential combined rental income of around £3,000 a month.
0:31:04 > 0:31:07'Does that interest George?'
0:31:07 > 0:31:11We don't intend renting it, unless we have to.
0:31:11 > 0:31:16But I would have said that £800 for the two of them is the right figure.
0:31:18 > 0:31:23'If George manages to sell the flats for the figure he has in mind,
0:31:23 > 0:31:30'there could be a pre-tax profit of over £100,000 - to be split five ways, of course.
0:31:30 > 0:31:32'Since filming,
0:31:32 > 0:31:37'the team have put the ground floor flat on the market for £399,000
0:31:37 > 0:31:41'and the two-bed flat is on for £499,000.
0:31:41 > 0:31:46'They've had a lot of interest but, as yet, no firm offers.'
0:31:52 > 0:31:55'I'm in Buxton in Norfolk.
0:31:55 > 0:31:59'This village has a mixture of 17th and 18th-century houses
0:31:59 > 0:32:04'together with modern estates, and lies eight miles north of Norwich.
0:32:04 > 0:32:08'Buxton got a mention in the Domesday Book.
0:32:08 > 0:32:14'Will today's property be all doom and gloom or a revelation?'
0:32:14 > 0:32:16Guide price, £100,000 to £105,000.
0:32:16 > 0:32:21A three-bedroom cottage, and how about that for an entrance porch?
0:32:21 > 0:32:23It's an old greenhouse.
0:32:23 > 0:32:27Doesn't quite work, does it? Most unusual porch I've ever seen.
0:32:27 > 0:32:30I'd better go in round the back.
0:32:30 > 0:32:36'This 100-year-old semi-detached looks in pretty good order outside.
0:32:36 > 0:32:39'The greenhouse might catch the sun,
0:32:39 > 0:32:45'but clambering over runner beans isn't the best way in and out of your front door.
0:32:45 > 0:32:50'Let's hope there are some more redeeming features inside.'
0:32:50 > 0:32:52You've got this strange room here.
0:32:52 > 0:32:56Somewhere to put your wellies, I suppose.
0:32:56 > 0:33:00The bathroom's there, and the loo. Very odd.
0:33:00 > 0:33:04Somebody's got a new bathroom suite ready to stick in place.
0:33:04 > 0:33:08Through into the kitchen. Again, you just walk through it.
0:33:08 > 0:33:12It's got too many doors, almost. Four doors!
0:33:12 > 0:33:16It just doesn't work. The units, a right old state.
0:33:16 > 0:33:19This room here, I guess that's a utility.
0:33:19 > 0:33:24Upstairs to the bedrooms, then into the lounge. Not working for me yet.
0:33:24 > 0:33:29'The lounge is a decent size, but very long and narrow.
0:33:29 > 0:33:31'There is potential lurking.
0:33:31 > 0:33:34'Behind the heater is an old fireplace.
0:33:34 > 0:33:39'I'm convinced the floorboards will be original. These are details.
0:33:39 > 0:33:42'The layout needs to be sorted first.
0:33:42 > 0:33:46'If you think downstairs is bad, wait till you see upstairs.'
0:33:46 > 0:33:49THAT is really, really weird.
0:33:49 > 0:33:54It's a three-bedroomed house, but this is the third bedroom.
0:33:54 > 0:33:58It's like they've forgotten to put the dividing wall in.
0:33:58 > 0:34:00You can't complain about the size
0:34:00 > 0:34:04and, what's more, two other really good size double bedrooms.
0:34:04 > 0:34:07You need to do a few bits and pieces.
0:34:07 > 0:34:11First of which, a couple of stud partition walls.
0:34:19 > 0:34:23'Open-plan living can be great, but not in the bedrooms.
0:34:23 > 0:34:28'The guide price was £100,000 to £105,000 but whoever bought it
0:34:28 > 0:34:33'will need to set money aside for a serious rethink of the configuration
0:34:33 > 0:34:36'to make the most of the space.'
0:34:38 > 0:34:43There's scope to expand this property, unusually, on three sides.
0:34:43 > 0:34:45If you're moving that bathroom upstairs,
0:34:45 > 0:34:48it's something you want to consider.
0:34:48 > 0:34:51If you get it for around the guide price,
0:34:51 > 0:34:56then think about an extension here, sort out the front elevation,
0:34:56 > 0:34:58some sort of a conservatory.
0:34:58 > 0:35:03If you pay over the odds, then it's about what you want to do with it.
0:35:03 > 0:35:07If you're going to live in it, it could be worth expanding.
0:35:07 > 0:35:11To sell it on at a profit, keep hold of your budget.
0:35:13 > 0:35:16'So, for that £100,000 to £105,000 guide price,
0:35:16 > 0:35:20'the buyer gets a 100-year-old cottage with great potential.
0:35:20 > 0:35:23'More importantly, they get THIS.
0:35:25 > 0:35:30'It's surrounded by open fields and has a good size country garden.
0:35:30 > 0:35:33'So, plenty to think about.
0:35:33 > 0:35:39'I asked an estate agent with the auction house for his impressions.'
0:35:39 > 0:35:41A lot of people want to live
0:35:41 > 0:35:46in a cottage in the country - that's what this property has to offer.
0:35:46 > 0:35:51It's got rural views, unspoilt. There is potential to extend.
0:35:51 > 0:35:55Either to add an upstairs bathroom or to have an extra reception room.
0:35:55 > 0:35:58This would add value as well.
0:35:58 > 0:36:00'It all sounds positive.
0:36:00 > 0:36:04'Surely, the village location makes it a popular rental investment.'
0:36:04 > 0:36:06There is rental potential.
0:36:06 > 0:36:11The village has amenities. It's a popular area to rent in.
0:36:11 > 0:36:15I'd expect to achieve £550 to £575 per calendar month.
0:36:15 > 0:36:20'How many thousands of pounds are we talking for resale value?'
0:36:20 > 0:36:24If it were renovated, we'd expect between 160 and 170.
0:36:24 > 0:36:30There's obviously work needed, but what I really like is the potential for expansion,
0:36:30 > 0:36:33and you can't knock the location.
0:36:33 > 0:36:39For £100,000 guide price, great one to go for. Let's see who bought it when it went under the hammer.
0:36:43 > 0:36:46Start me at 105, if you like.
0:36:46 > 0:36:48105. 110.
0:36:48 > 0:36:50115.
0:36:50 > 0:36:52120.
0:36:52 > 0:36:54125.
0:36:54 > 0:36:57You're shaking your head.
0:36:57 > 0:36:59130. 135.
0:36:59 > 0:37:02£135,000.
0:37:02 > 0:37:05£135,000 here. Half.
0:37:05 > 0:37:07Been with me all the way. 136.
0:37:09 > 0:37:12136 and a half.
0:37:14 > 0:37:17I'll take 250, if it helps you.
0:37:17 > 0:37:21136,750. He's shaking HIS head, now.
0:37:21 > 0:37:24136,750, then, for the first time.
0:37:26 > 0:37:29136,750 for the second time.
0:37:30 > 0:37:33Third and final time at 136,750.
0:37:33 > 0:37:36BANGS GAVEL Yours, sir. Well done.
0:37:37 > 0:37:44'The successful bid of 136,750 was made by Kevin and his wife, Angela.
0:37:44 > 0:37:46'Kevin's an insurance technician.
0:37:46 > 0:37:51'Angela's a teacher, and they both work in Norwich.
0:37:51 > 0:37:55'They have two small children and live just five miles away.
0:37:55 > 0:37:59'Is this house going to be their dream home?
0:37:59 > 0:38:01'I met up with them to find out.'
0:38:01 > 0:38:05Kevin, Angela, lovely to meet you. Congratulations.
0:38:05 > 0:38:07- Thank you. - Why did you want to buy this place?
0:38:07 > 0:38:11Well, our son goes to school in Buxton.
0:38:11 > 0:38:13A lot of our friends are in Buxton.
0:38:13 > 0:38:18We tried several other properties in Buxton, which we didn't get.
0:38:18 > 0:38:21This one came up so we decided to buy this.
0:38:21 > 0:38:25- This is for YOU, is it?- Yes. - Family home.- Great.
0:38:25 > 0:38:30- You've got a place where you live at the moment?- We sold ours in July.
0:38:30 > 0:38:36We moved into rented accommodation and went from a four-bedroom down to two.
0:38:36 > 0:38:38So where's all your stuff?
0:38:38 > 0:38:43In storage, in the garage, and in the house. And in the garden.
0:38:43 > 0:38:46'So, space is what they need,
0:38:46 > 0:38:52'not something there's an abundance of here, at the moment at least.'
0:38:52 > 0:38:56We do plan to extend, develop it to fit our lifestyle.
0:38:56 > 0:39:00We will be adding a bedroom and a new lounge.
0:39:00 > 0:39:03Tell me more about the extension.
0:39:03 > 0:39:05This wall's going to come down.
0:39:05 > 0:39:10We're going to have an open kitchen-dining room area
0:39:10 > 0:39:12with a utility, downstairs bathroom,
0:39:12 > 0:39:18- family bathroom...family room and a lounge on the side.- Wow!
0:39:18 > 0:39:21What about upstairs? The layout is just so strange.
0:39:21 > 0:39:23Um... Yeah.
0:39:23 > 0:39:29We're hoping to put four bedrooms, a family bathroom,
0:39:29 > 0:39:33and the main bedroom will be en suite as well.
0:39:33 > 0:39:38That's how the plans have been drawn up. We should get away with it.
0:39:38 > 0:39:42- One of those will be in the extension?- Yes.- Master bedroom.
0:39:42 > 0:39:46- Why don't you buy a bigger house? - Because it's too expensive.
0:39:46 > 0:39:48And it's the location.
0:39:48 > 0:39:53To buy this already done is way above what we can afford.
0:39:53 > 0:39:58So we thought we'd do this and at least we've done it ourselves.
0:39:58 > 0:40:00- It's the challenge.- Yeah.
0:40:00 > 0:40:05- It sounds like you're gutting it. - Yes, we are.- Plaster off the walls.
0:40:05 > 0:40:08Ceilings all coming down. Everything's going.
0:40:10 > 0:40:13'They've got a healthy budget of £50,000
0:40:13 > 0:40:16'and hope to bring this cottage back to life
0:40:16 > 0:40:18'as a comfortable family home.'
0:40:27 > 0:40:31So, what kind of timescale for all the work?
0:40:31 > 0:40:35- We are looking from start to finish, four months.- Yeah.
0:40:35 > 0:40:38- Four months?- Yeah.- That's not long.
0:40:38 > 0:40:41- Not to build an extension. - I'm very demanding!
0:40:41 > 0:40:43You want to be in here!
0:40:43 > 0:40:50- We do. Yes.- Our builder, Liam, already knows how I'm going to be, kicking his bum.
0:40:50 > 0:40:55Congratulations, and we look forward to seeing your family running around.
0:40:55 > 0:41:00- It would be nice. And it'll be finished, as well. - Well, good luck.- Thank you.
0:41:00 > 0:41:05So, there are grand plans afoot for this little house,
0:41:05 > 0:41:09certainly challenges ahead for Kevin and Angela.
0:41:09 > 0:41:13And demanding Angela? Will she keep those builders under control?
0:41:13 > 0:41:16And the budget within 50 grand?
0:41:16 > 0:41:19You can find out later in the show.
0:41:22 > 0:41:27Time and tide wait for no man and, in the property world,
0:41:27 > 0:41:29time usually means money.
0:41:29 > 0:41:33Let's go back and see how that time and cash has been spent.
0:41:35 > 0:41:40'We're heading to Southampton, to catch up with kitchen-fitter Peter.
0:41:40 > 0:41:45'He bought this bungalow in the Bitterne Park area for 90,000.'
0:41:46 > 0:41:50# ..Start all over again... #
0:41:50 > 0:41:55'Amazingly, he hadn't even seen the place before he parted with his cash
0:41:55 > 0:41:58'and, boy, was he in for a surprise!
0:41:58 > 0:42:05'The property was riddled with cracks and suffering from subsidence.'
0:42:05 > 0:42:12When I realised how bad it was, I thought, "Looks like I might have to knock it down and start again.'
0:42:12 > 0:42:14- I think it's a building plot.- No?!
0:42:14 > 0:42:19# There's danger, danger Danger ahead
0:42:19 > 0:42:21# Beware! #
0:42:21 > 0:42:25'So, in one day, Peter had gone from buying a property
0:42:25 > 0:42:27'to be his first renovation
0:42:27 > 0:42:31'to having a complete demolition and rebuild job on his hands.
0:42:31 > 0:42:35'19 months later, how's his building project coming along?'
0:42:41 > 0:42:47'The first surprise is that the original property is still here.'
0:42:47 > 0:42:50# ..All right now
0:42:50 > 0:42:54# Baby, it's all right now
0:42:55 > 0:42:58# All right now
0:42:58 > 0:43:02# Baby, it's all right now... #
0:43:02 > 0:43:07'After consulting with local planners, Peter changed his mind
0:43:07 > 0:43:12'and decided to renovate the original subsiding bungalow.'
0:43:12 > 0:43:17It would have been not a problem to get permission to rebuild,
0:43:17 > 0:43:22but I wouldn't have got permission to build a house, just a bungalow.
0:43:22 > 0:43:29So I thought I could probably renovate it to sufficient standards, as you can see today.
0:43:29 > 0:43:33'So it's been renovated to a safe and liveable standard
0:43:33 > 0:43:38'and is now rented out to a family who are happily settled in.
0:43:38 > 0:43:41'By not dealing with the subsidence in a permanent way,
0:43:41 > 0:43:45'there could be further movement in the future.'
0:43:45 > 0:43:50If the walls start cracking and that sort of thing seriously again
0:43:50 > 0:43:53then I'll have to review the situation,
0:43:53 > 0:43:58and it's likely I'll go back to the original plan, knock it down.
0:43:58 > 0:44:04If it stays where it is, and there's no reason why it should move, it's a good rentable property.
0:44:04 > 0:44:10'Peter's done all the work himself, spending £10,000 on materials.
0:44:11 > 0:44:16'He's replaced the roof, rewired, replumbed and fitted a new boiler,
0:44:16 > 0:44:21'put new flooring down and redone the kitchen and bathroom.'
0:44:24 > 0:44:29This room was originally a dining room and a bedroom.
0:44:29 > 0:44:33I've knocked the wall out and made it into a lounge-diner.
0:44:33 > 0:44:37As you can see, an open-plan kitchen arrangement as well.
0:44:37 > 0:44:42To make the kitchen bigger, there was a chimney breast in here,
0:44:42 > 0:44:46so I knocked it out which gave me room to fit everything comfortably.
0:44:48 > 0:44:53'Peter's finished everything to a very high standard.
0:44:53 > 0:44:56'Although not a long-term solution to the problems,
0:44:56 > 0:45:02'he's made sure that it's a very comfortable home in the meantime.'
0:45:02 > 0:45:06When I bought the property, there was a door in this wall.
0:45:06 > 0:45:10To get to the room, you had to come into this room.
0:45:10 > 0:45:15So I've blocked that off and I've now put a new doorway here.
0:45:15 > 0:45:20So you don't have to go from one room to the next.
0:45:20 > 0:45:25'With a family renting the bungalow, new landlord Peter's hard work
0:45:25 > 0:45:28'is already starting to pay off.
0:45:28 > 0:45:30'How did he find his tenants?'
0:45:30 > 0:45:35Whilst I was working here, I was quite friendly with the neighbours,
0:45:35 > 0:45:38which I find is a good thing to be.
0:45:38 > 0:45:43My next-door neighbour's daughter was looking for a place to move into
0:45:43 > 0:45:45so she approached me.
0:45:45 > 0:45:48No work on my part! And she's now here.
0:45:48 > 0:45:52'How convenient! Finding a tenant was the easy part.
0:45:52 > 0:45:55'When it came to the renovation,
0:45:55 > 0:45:58'Peter wasn't the only person putting the hours in.
0:45:58 > 0:46:02'He also got a little help from his children.'
0:46:02 > 0:46:07They've been doing all sorts. They've been clearing the garden.
0:46:07 > 0:46:13They did a lot of preparation work, taking off wallpaper, help with the painting.
0:46:13 > 0:46:16My sister did quite a lot.
0:46:16 > 0:46:19She did lots of painting the radiators
0:46:19 > 0:46:21and the doors and the walls.
0:46:21 > 0:46:24We had to knock the shed down.
0:46:24 > 0:46:27Then we made the concrete base.
0:46:27 > 0:46:29It was raining but we still did it.
0:46:29 > 0:46:33# ..The kids are all right... #
0:46:33 > 0:46:37'Did Dad pay them handsomely for their help?'
0:46:37 > 0:46:41On the way here, I got money for doing the work
0:46:41 > 0:46:45and we stopped off at this, like, cookery place
0:46:45 > 0:46:47and it did really nice doughnuts.
0:46:48 > 0:46:51'Glad to hear it, Jack!
0:46:51 > 0:46:53'Peter spent £100,000 on the house,
0:46:53 > 0:46:57'including his £10,000 renovation budget.
0:46:57 > 0:47:00'Has he invested wisely?
0:47:00 > 0:47:05'Let's get the opinion of two local estate agents
0:47:05 > 0:47:07'to hear what his options are.'
0:47:07 > 0:47:10It's a complete transformation.
0:47:10 > 0:47:15It's a nice little house now. New kitchen, new bathroom.
0:47:15 > 0:47:18It's got a nice feel to it.
0:47:18 > 0:47:20The finish is very good.
0:47:20 > 0:47:25It's very neutral. I think it will be to a lot of people's tastes.
0:47:25 > 0:47:30'Great first impressions but, since subsidence is still an issue,
0:47:30 > 0:47:32'the property's unmortgageable.
0:47:32 > 0:47:34'Does this make it unsaleable?'
0:47:34 > 0:47:38If the structural issues are ongoing,
0:47:38 > 0:47:42it's a waste of time putting this property back to market.
0:47:42 > 0:47:44It needs to be rectified.
0:47:44 > 0:47:47If there was no problems with it,
0:47:47 > 0:47:51I'd value the property at £200,000.
0:47:51 > 0:47:56However, if it does need to be knocked down, that sort of thing,
0:47:56 > 0:47:58it's purely a plot.
0:47:58 > 0:48:04Really, you're going to attract cash buyers or auctions again.
0:48:04 > 0:48:09If it was being sold as a plot, it's only worth £80,000.
0:48:09 > 0:48:13'With Peter's total outlay of £100,000 here,
0:48:13 > 0:48:19'that could see him making a loss of 20 grand if he tried to sell now.
0:48:19 > 0:48:26'As he knows, his best option is to continue letting it out whilst he works out a long-term plan.'
0:48:27 > 0:48:31I will certainly consider rebuilding the place.
0:48:31 > 0:48:35As it stands at the moment, it's doing its job.
0:48:35 > 0:48:41There will be a stage when it will need more repair. That's when I'll rebuild it.
0:48:41 > 0:48:46'Peter's getting a rental income of £750 per calendar month.
0:48:46 > 0:48:51'Is he hitting the right mark with that figure?'
0:48:51 > 0:48:55He could rent out a property like this for £800 per calendar month.
0:48:55 > 0:49:00Rental, we'd be talking about £825 to £850 a month.
0:49:00 > 0:49:05'That's potentially a healthy annual yield of over 10%.'
0:49:05 > 0:49:10Well, that's pretty much in line with how it's all worked out.
0:49:10 > 0:49:12I think I probably got it right.
0:49:12 > 0:49:16'This has been a baptism of fire for Peter.
0:49:16 > 0:49:21'Has it put him off buying property at auction and developing them?'
0:49:21 > 0:49:25If I had the time and the money to do it, yes, I would.
0:49:25 > 0:49:29It's just being in the right place at the right time.
0:49:33 > 0:49:38'Earlier in the programme, we met Angela and Kevin.
0:49:38 > 0:49:43'They'd sold their four-bed house, so the couple and their two boys
0:49:43 > 0:49:48'were searching for a family home in Buxton in Norfolk.
0:49:48 > 0:49:54'They bought this three-bed semi-detached cottage for 136,750.
0:49:54 > 0:50:00'It was in their dream location but the property was far from ideal.'
0:50:00 > 0:50:02It sounds like you're gutting it.
0:50:02 > 0:50:06- Yes, we are.- Definitely. Plaster off the walls.
0:50:06 > 0:50:09Ceilings down, plaster coming off. Everything's going.
0:50:11 > 0:50:14'So there were big changes ahead.
0:50:14 > 0:50:16'They imposed a strict four-month deadline
0:50:16 > 0:50:21'to be out of rented accommodation and into their new home.
0:50:21 > 0:50:25'Four months passed. Then, five. Then, six.
0:50:25 > 0:50:31'After a difficult eight months being let down by builders and tradesmen,
0:50:31 > 0:50:35'has the cottage become the family home they were working towards?'
0:50:44 > 0:50:47Originally, it were half a house, really.
0:50:47 > 0:50:51We've extended onto the side of the property,
0:50:51 > 0:50:57which has given us a master bedroom that's en suite and a nice wardrobe.
0:50:57 > 0:51:00And then downstairs,
0:51:00 > 0:51:02we've got a nice size lounge
0:51:02 > 0:51:07and we've got the additional office/play room,
0:51:07 > 0:51:09which we do need these days.
0:51:09 > 0:51:13'The cottage is almost completely unrecognisable.
0:51:13 > 0:51:18'Whilst the two extensions have increased the footprint,
0:51:18 > 0:51:22'pretty much every interior wall on the ground floor has been removed
0:51:22 > 0:51:26'to give a wonderful sense of space.'
0:51:26 > 0:51:29This was the original lounge.
0:51:29 > 0:51:33We've knocked through to make it a kitchen-diner,
0:51:33 > 0:51:36so we've got modern living.
0:51:43 > 0:51:48Then we've put the stairs up the back, rather than the middle,
0:51:48 > 0:51:51to incorporate the bathroom upstairs.
0:51:51 > 0:51:57It's much more convenient, especially when you've got children.
0:51:57 > 0:52:02'The old layout upstairs was never going to be practical,
0:52:02 > 0:52:07'so they moved the stairs, allowing for a completely new configuration
0:52:07 > 0:52:11'with four bedrooms plus family bathroom.'
0:52:11 > 0:52:17Total modernising, but trying to keep the character of the property
0:52:17 > 0:52:22back to the cottage style that it really needed.
0:52:22 > 0:52:26'It's not been an easy first renovation project for the family.
0:52:26 > 0:52:30'They'd given their notice on the property they were renting
0:52:30 > 0:52:35'so, despite it not being finished, they were forced to move in.'
0:52:35 > 0:52:38I've not had a cooker for three weeks.
0:52:38 > 0:52:41They managed to just get us the water
0:52:41 > 0:52:45so we could actually bath and use the toilet.
0:52:45 > 0:52:49Other than that... To be honest, it's been a nightmare.
0:52:49 > 0:52:53'Certainly far from ideal with two small children.
0:52:53 > 0:52:56'Angela did say she wanted a challenge!'
0:52:56 > 0:52:58This was certainly a challenge.
0:52:58 > 0:53:01I think the challenge we were looking for
0:53:01 > 0:53:03was more of a fantasy,
0:53:03 > 0:53:07thinking we were just going to buy a building,
0:53:07 > 0:53:11do it all up and enjoy the whole process.
0:53:11 > 0:53:16Reality is, you know, there were several headaches along the line.
0:53:16 > 0:53:19There's been a lot of stress
0:53:19 > 0:53:24but, at the end of the day, we are very happy with what we've achieved.
0:53:30 > 0:53:34'Kevin seems pretty relieved the end is in sight as well.'
0:53:34 > 0:53:39Now that we've finished all the major work, it's lovely!
0:53:39 > 0:53:45We're really happy with the house that we've actually got now.
0:53:45 > 0:53:50'Who was the main driving force behind this renovation?'
0:53:50 > 0:53:54- Kevin would say that I was boss. - Angela's the boss.
0:53:54 > 0:53:57We do make a lot of decisions together.
0:53:57 > 0:54:02But I think the fact that I've got a pink kitchen will tell you
0:54:02 > 0:54:04that I choose most of the fabrics.
0:54:04 > 0:54:08She IS demanding. She wants what she wants.
0:54:08 > 0:54:11Which is fair enough, so I play along with that.
0:54:11 > 0:54:14'But what Angela wanted came at a cost.
0:54:14 > 0:54:19'Their original budget was £50,000 and so far they've spent 80,000.
0:54:19 > 0:54:24'But they do have a really lovely family home to show for it.'
0:54:24 > 0:54:29# ..Cos, baby, now I know There ain't no place like home. #
0:54:29 > 0:54:34'Let's see what two local estate agents think of the changes.'
0:54:34 > 0:54:38First impressions are it's got loads of space.
0:54:38 > 0:54:42They've done a fantastic job to a high standard.
0:54:45 > 0:54:47I'm particularly impressed
0:54:47 > 0:54:51by the way they've done the extensions.
0:54:51 > 0:54:54Doesn't feel like a modern bit added to it.
0:54:54 > 0:54:58The overall accommodation works very nicely.
0:54:58 > 0:55:02'Angela and Kevin paid £136,750
0:55:02 > 0:55:04'for the cottage.
0:55:04 > 0:55:08'They've spent £80,000 on the extensions and renovation,
0:55:08 > 0:55:15'giving them a total outlay of £216,750.
0:55:15 > 0:55:20'They aren't interested in renting it out as it's their family home,
0:55:20 > 0:55:23'but have their improvements added value?'
0:55:23 > 0:55:28I'd put this property on the market between £200,000 and £225,000.
0:55:28 > 0:55:33The property should be marketed at an asking price of £225,000.
0:55:33 > 0:55:37'As things stand, they've broken even.'
0:55:37 > 0:55:39I'm OK with it.
0:55:39 > 0:55:43- We've not done it to sell it, but to live in it.- It's true.
0:55:43 > 0:55:49I mean, it's disappointing, because we would have hoped for a bit more.
0:55:49 > 0:55:53But as Angela says, we're going to live in it for a few years
0:55:53 > 0:55:56and hope the market picks up.
0:55:56 > 0:55:58'They haven't made any money yet,
0:55:58 > 0:56:02'but they are living the country life they craved
0:56:02 > 0:56:06'in a beautiful home they've completely transformed.
0:56:06 > 0:56:10'Would they consider another renovation project?'
0:56:10 > 0:56:14- I'm not going to say no, but not just yet.- Yeah.
0:56:14 > 0:56:17- I'll back that up. - We need to get over this first.
0:56:17 > 0:56:20It's been a traumatic time, to say the least!
0:56:21 > 0:56:27# ..Let me go home
0:56:28 > 0:56:31# I'm just too far From where you are
0:56:31 > 0:56:34# I wanna come home. #
0:56:36 > 0:56:39We hope you've enjoyed today's property portfolio.
0:56:39 > 0:56:46- Join us next time for more brave buyers on Homes Under The Hammer. - Goodbye.
0:57:02 > 0:57:05Subtitles by Red Bee Media Ltd
0:57:05 > 0:57:08E-mail subtitling@bbc.co.uk