0:00:02 > 0:00:05- Hello and welcome.- For many, buying at auction gives the chance
0:00:05 > 0:00:07to get properties that are in need of some work.
0:00:07 > 0:00:10People like to put their own stamp and style on their property
0:00:10 > 0:00:13and hopefully make a bit of a profit along the way.
0:00:13 > 0:00:18And there's much more chance that you might do that when you buy your home under the hammer.
0:00:43 > 0:00:46We love the buzz and the excitement in the auction room.
0:00:46 > 0:00:49You can almost sense the hope and frustration in the air.
0:00:49 > 0:00:53Yes, and you never know what's going to happen until the very last second.
0:00:53 > 0:00:56So, what's tempted the buyers on today's programme?
0:00:56 > 0:01:02'I'm heading west to see a bizarrely-designed terraced house in Cardiff.'
0:01:02 > 0:01:06In all my time on Homes Under The Hammer, I've never seen a layout like this.
0:01:06 > 0:01:11'I'm going east to a bungalow by the sea in sunny Margate.'
0:01:11 > 0:01:15It's a good thing for me when you get to the front door and you like it already.
0:01:17 > 0:01:21'And I'm off to see a period flat in the student area of Plymouth.'
0:01:23 > 0:01:26Wow, wow, wow, wow, wow! Look at this!
0:01:26 > 0:01:29'All these properties have been sold at auction
0:01:29 > 0:01:33'and we'll find out who bought them and what they paid for them when they went under the hammer.'
0:01:33 > 0:01:35It's yours. Thank you.
0:01:41 > 0:01:45'I'm in Cardiff, in an area of the city called Splott.
0:01:45 > 0:01:52'One of the oldest areas of the capital, it gets its name from the Welsh word for allotments,
0:01:52 > 0:01:57'which is exactly what this area used to be before all these houses were built.'
0:01:57 > 0:02:02So, what am I here to see? Well, it's a property that's very typical for this part of Wales.
0:02:02 > 0:02:07It's a two-bedroom end-terrace at a guide price of £68,000.
0:02:07 > 0:02:12Classic for this kind of property, the front leading straight off the pavement. Let's look inside.
0:02:13 > 0:02:16'This property hasn't been touched for years,
0:02:16 > 0:02:19'but there has been a local regeneration scheme
0:02:19 > 0:02:22'which has made the area much more desirable.'
0:02:23 > 0:02:31Oh, crikey. Straight away, through the front door, and nicotine staining like you wouldn't believe.
0:02:31 > 0:02:35Blimey. And the smell. Not that pleasant, I have to say.
0:02:35 > 0:02:40But let's try to focus on the layout. What have we got? Fairly standard layout so far.
0:02:40 > 0:02:44Front sitting room area there and then through into a rear sitting room.
0:02:44 > 0:02:48Again, really badly nicotine-stained, it's this yellow colour.
0:02:48 > 0:02:52You've got a gas fire. Oh, interesting stuff going on there.
0:02:52 > 0:02:56Look like somebody's been peeling off the wallpaper to look what's behind.
0:02:56 > 0:03:00As far as I can see, nothing too untoward. Not too bad so far.
0:03:01 > 0:03:03What is that?
0:03:03 > 0:03:09This is really, really weird. In all my time on Homes Under The Hammer, I've never seen a layout like this.
0:03:09 > 0:03:12You come out of the rear sitting room
0:03:12 > 0:03:15and what do you get? A bathroom.
0:03:15 > 0:03:20Perfect. It gets worse, because you go through here into the kitchen.
0:03:20 > 0:03:23Not only is it in a dreadful location, it's small.
0:03:23 > 0:03:27I mean, to call it a kitchen is a bit of a... Well, it's not, basically.
0:03:27 > 0:03:32It's in this lean-to area at the rear of the property and here's the loo, the only one in the house.
0:03:32 > 0:03:39So to say this place needs a bit of an interior rework would be a bit of an understatement.
0:03:39 > 0:03:44'A bathroom between a kitchen and the living room could make you blush.'
0:03:44 > 0:03:46# Don't embarrass me, baby
0:03:46 > 0:03:50'If someone wants to make a cup of tea just as you've slipped into the bath,
0:03:50 > 0:03:53'they may have to look the other way.'
0:03:53 > 0:03:57Strangely, one thing that's not too bad is the position of the stairs.
0:03:57 > 0:04:00Don't take up to much of the downstairs, which is good news.
0:04:00 > 0:04:03And up here, two reasonable-sized bedrooms.
0:04:03 > 0:04:06But let's talk about what we're going to do to sort this out.
0:04:06 > 0:04:09Clearly, downstairs is a bit of a disaster,
0:04:09 > 0:04:12so maybe think about putting in a two-storey extension.
0:04:12 > 0:04:15Certainly, I think there's space out the back there to do that.
0:04:15 > 0:04:20You've got the footprint already, so it shouldn't be too much of a problem in terms of planning.
0:04:21 > 0:04:24'Despite all the problems, it's an intriguing little property.
0:04:24 > 0:04:28'But how did it end up with such a quirky layout?
0:04:28 > 0:04:32'I asked a local estate agent to shed some light on the subject.'
0:04:32 > 0:04:34This property, when it was originally built,
0:04:34 > 0:04:36was designed without a bathroom
0:04:36 > 0:04:40and basically had a communal toilet
0:04:40 > 0:04:44in the rear garden, which probably served two to four properties.
0:04:44 > 0:04:47So that's why the current design of the property is as it is.
0:04:48 > 0:04:51'So that explains the unusual layout.
0:04:51 > 0:04:54'But what's the best way to improve the place?'
0:04:54 > 0:04:57In my opinion, the best way forward on this property
0:04:57 > 0:04:59would be to have a good ground-floor extension,
0:04:59 > 0:05:04having a bathroom and a kitchen addition to the current layout.
0:05:07 > 0:05:11'Sounds like a good plan, but potentially expensive.
0:05:11 > 0:05:14'Remember, this property had a guide price of £68,000.
0:05:14 > 0:05:17'How much could it be worth once all the improvements are done?'
0:05:19 > 0:05:22If this property was renovated to modern-day standards
0:05:22 > 0:05:25with a good ground-floor kitchen and bathroom extension,
0:05:25 > 0:05:28in my opinion, the value would be £130,000.
0:05:28 > 0:05:32'So there is money to be made here, but what about its rental potential?'
0:05:32 > 0:05:35The rental expectancy for this particular property
0:05:35 > 0:05:40would be £550 per calendar month as a family.
0:05:40 > 0:05:46If, however, it was let to three or maybe four professionals on a room-by-room basis,
0:05:46 > 0:05:49it could well achieve £750 per calendar month.
0:05:49 > 0:05:54'That's between £6,500 and £9,000 a year.
0:05:54 > 0:05:58'So both rental and resale are good options.'
0:05:58 > 0:06:01All in all, a very interesting little place.
0:06:01 > 0:06:06Who went for this quirky little terrace with the odd layout in Splott?
0:06:06 > 0:06:08Let's find out as we go to the auction.
0:06:10 > 0:06:13'This was one of the last auction lots to be sold
0:06:13 > 0:06:17'so by the time it came up, most of the bidders had already called it a day.
0:06:17 > 0:06:23'But less competition can mean more chance of getting something at a bargain price.'
0:06:23 > 0:06:27Who's got £80,000 for this one? 75 to get on, then.
0:06:27 > 0:06:3170. Thank you, sir, I should think so. I knew you were interested.
0:06:31 > 0:06:35At 71,000. 2 if you like. 2 is bid.
0:06:35 > 0:06:37Your bid, 72,000.
0:06:37 > 0:06:4073, thank you. At 73,000.
0:06:40 > 0:06:444 in the back. At £74,000.
0:06:44 > 0:06:495 in front of me. At £75,000, it's yours. Thank you.
0:06:50 > 0:06:55'The successful and very quick bid of 75 grand came from optician Mo.
0:06:55 > 0:07:02'His friend, also called Mo, owns a construction company and is in on the deal.
0:07:02 > 0:07:07'Together, they've seen through the property's foibles and reckon they've got a good buy.'
0:07:08 > 0:07:13- Mo, Mo, very good to meet you both. Congratulations.- BOTH: Thank you.
0:07:13 > 0:07:17- Tell me about you two. How do you know each other?- From university.
0:07:17 > 0:07:20- Oh, great!- Many years ago.- Right.
0:07:20 > 0:07:23- Many decades ago.- Yes. THEY LAUGH
0:07:23 > 0:07:29So what made you come up with the idea of linking forces to do a property investment?
0:07:29 > 0:07:33Well, my job is in construction. I've got a construction company.
0:07:33 > 0:07:38But this is our first joint venture. We've been thinking about it.
0:07:38 > 0:07:44Now the construction site is a bit quiet, so we decided to go and do our own development, basically.
0:07:44 > 0:07:49- So, why did you want to buy this place?- I think, for a while, we've been looking around
0:07:49 > 0:07:54and we just wanted to grab a piece of the action, buy something together and have a go at it.
0:07:54 > 0:07:57This is small enough to kick off and it's safe
0:07:57 > 0:08:01- and nothing can go wrong as far as we're concerned.- Famous last words.
0:08:01 > 0:08:04THEY LAUGH Indeed!
0:08:04 > 0:08:07- No, I'm sure it'll be fine.- We are quite happy with the condition.
0:08:07 > 0:08:09In fact, this is ideal for us.
0:08:11 > 0:08:15'The two friends met when they studied civil engineering together.
0:08:15 > 0:08:19'They certainly seem pretty confident in each other's abilities,
0:08:19 > 0:08:22'but the place looks pretty challenging to me.'
0:08:22 > 0:08:25We've got a couple of plans in mind.
0:08:25 > 0:08:27One would be, if we can get planning permission,
0:08:27 > 0:08:31to go for a two-storey extension and introduce the bathroom upstairs
0:08:31 > 0:08:36- and develop downstairs as an open-plan kitchen and lounge.- Mm.
0:08:36 > 0:08:41The second plan would be maybe just extend further back downstairs
0:08:41 > 0:08:49and introduce a larger open-plan lounge, kitchen-diner, with a bathroom on the ground floor.
0:08:49 > 0:08:54What do you think the hurdles might be with the two-storey extension? Because that would be ideal.
0:08:54 > 0:09:01Ideally, but the obstruction we see where we might be lucky not to have any objection is next-door neighbour.
0:09:01 > 0:09:04There might be light obstruction to their building.
0:09:04 > 0:09:08But the planner, I'm sure, will advise us on that one.
0:09:08 > 0:09:13- Right.- But that would be ideal for us, if we can go for double-storey.
0:09:16 > 0:09:19'It sounds like they've given it quite a bit of thought already,
0:09:19 > 0:09:25'but Mo and Mo have a budget of just £25,000 to do everything.
0:09:25 > 0:09:28'How will they manage this renovation between them?'
0:09:29 > 0:09:34This is the first joint venture. Mo decided to be hands-on
0:09:34 > 0:09:39and be a project manager on this job, so I'm relying on his ability.
0:09:39 > 0:09:44- Wow.- I will be looking over his shoulder from a distance.
0:09:44 > 0:09:47We are also hoping to keep the costs down,
0:09:47 > 0:09:50because we have some contacts within the industry
0:09:50 > 0:09:54and therefore, hopefully, we'll be able to get better prices
0:09:54 > 0:09:56for the various aspects of the job
0:09:56 > 0:10:00compared to somebody who's completely new to the game
0:10:00 > 0:10:03and is just starting off.
0:10:03 > 0:10:06- A lot of weight on your shoulders, Mo.- Indeed!
0:10:06 > 0:10:11But I'm used to that. Hopefully, we'll be able to tackle the job as a joint venture.
0:10:11 > 0:10:13How long do you think it will take?
0:10:13 > 0:10:18We are envisaging perhaps around four months at this stage,
0:10:18 > 0:10:23to also include the time we need to allow for planning requirements and building regulations.
0:10:25 > 0:10:28'So, a £25,000 budget
0:10:28 > 0:10:35'with four months to have the property completed and back on the market ready for resale or rental.
0:10:35 > 0:10:37'They are really putting themselves under pressure,
0:10:37 > 0:10:40'although they seem pretty relaxed about it.'
0:10:41 > 0:10:45You two seem to be having really good fun doing this.
0:10:45 > 0:10:48- I think so, yes. - We've always based it on that.
0:10:48 > 0:10:51I always said to Mo that, first and foremost, any work we do
0:10:51 > 0:10:54should create a fun atmosphere for us
0:10:54 > 0:10:57so that we enjoy doing the work
0:10:57 > 0:11:01and we take a little bit of pride in the end product.
0:11:01 > 0:11:03We're going to make it fun, yes.
0:11:03 > 0:11:06You've been chums for how many years?
0:11:06 > 0:11:09- Oh, nearly 30 years. - 30 years as friends.
0:11:09 > 0:11:14How do you think that's going to work, moving over to a business relationship?
0:11:14 > 0:11:18You've got to be careful, obviously. There's got to be a degree of understanding.
0:11:18 > 0:11:22I've got a commercial background. I'm more precise.
0:11:22 > 0:11:27Everything has to be programmed, monitored, progress and everything else.
0:11:27 > 0:11:30But Mo is a bit laidback.
0:11:30 > 0:11:34That's why I want to get myself out of the scenario.
0:11:34 > 0:11:38He's the project manager, I'm going to hold him accountable at the end of the project.
0:11:38 > 0:11:46- THEY LAUGH - There's one thing I'm sure of. At the end of this first project,
0:11:46 > 0:11:51- our friendship will be strengthened. - Definitely.- I'm sure of that. - I'm sure, as well.
0:11:51 > 0:11:54- Listen, congratulations.- Thank you. - Good luck with it.- Thank you.
0:11:54 > 0:11:59- And we look forward to seeing how you get on.- Thank you very much.
0:12:00 > 0:12:05Well, don't you just love Mo and Mo's enthusiasm? Absolutely infectious.
0:12:05 > 0:12:07A few issues to resolve with this place to sort it out.
0:12:07 > 0:12:11Will they get that planning permission and how will their friendship survive
0:12:11 > 0:12:13the rigours of doing this place up?
0:12:13 > 0:12:17You can find out how they get on later in the show.
0:12:25 > 0:12:29There's something about the traditional British seaside town
0:12:29 > 0:12:32that just warms your heart, even in cold weather like this.
0:12:32 > 0:12:36And the southeast coastal town of Margate is no different.
0:12:36 > 0:12:39It's suffered a downturn in tourism in recent years,
0:12:39 > 0:12:41like many other UK holiday spots,
0:12:41 > 0:12:44but money has been heavily invested in the town centre
0:12:44 > 0:12:46and rejuvenating that famous old promenade,
0:12:46 > 0:12:50so things are moving in the right direction.
0:12:52 > 0:12:56'That investment has brought new life to the town.
0:12:56 > 0:12:59'Margate is now home to galleries, artist workspaces
0:12:59 > 0:13:03'and is fast becoming a more desirable place to live.'
0:13:05 > 0:13:09The property I've come to see is a short walk from the seaside
0:13:09 > 0:13:12in this no-through road in Westbrook in a suburb of Margate.
0:13:12 > 0:13:17I'm told it's got its own little community with independent shops and a villagey vibe,
0:13:17 > 0:13:20so this bungalow really fits in.
0:13:20 > 0:13:27It's quaint, it's characterful, and it was guided at £150,000 to £160,000.
0:13:31 > 0:13:35It's a good thing for me when you get to the front door and you like it already.
0:13:35 > 0:13:38Look at this. It's got so much character. And wow!
0:13:38 > 0:13:41This is a hallway and a half.
0:13:41 > 0:13:44I love bungalows because they offer so much space.
0:13:44 > 0:13:48We've got a huge sitting room with a little thirties fireplace.
0:13:48 > 0:13:53Another room to the left, I suppose that would be a bedroom. A second bedroom here.
0:13:53 > 0:13:57The colour scheme leaves a lot to be desired, I have to say.
0:13:57 > 0:14:00But you've got great ceiling height, as well. It's looking good.
0:14:04 > 0:14:07'The bright colours continue in the tiny bathroom
0:14:07 > 0:14:10'and even tinier loo next door.
0:14:10 > 0:14:13'I'd knock down the adjoining wall straight away.'
0:14:13 > 0:14:15The colour schemes really are fantastic.
0:14:15 > 0:14:20Of course, a pink kitchen! But you've got to see beyond all of this.
0:14:20 > 0:14:24Once you've decorated in here, it would be great. You've got a good size kitchen.
0:14:24 > 0:14:27You could even knock out this chimney breast to open it up a bit more.
0:14:27 > 0:14:31And you've got a sort of conservatory bolted onto the side.
0:14:31 > 0:14:36I think it's only single skin, so you'd need to look into that, and plastic, corrugated roof there.
0:14:36 > 0:14:41That would need changing. But you've got a little bit of extra space for the summer months.
0:14:41 > 0:14:44And in here, a larder. You could either store your food in there
0:14:44 > 0:14:48or knock it out and incorporate the space into the kitchen.
0:14:48 > 0:14:52And as far as extending goes, well, I don't think you'll have much luck,
0:14:52 > 0:14:55because outside, all there is is a fence.
0:14:57 > 0:15:00'What this property doesn't have is a back garden.
0:15:00 > 0:15:04'Although there are gardens on both sides, they're not very private.
0:15:04 > 0:15:07'On the plus side, there is a garage and off-street parking.
0:15:07 > 0:15:12'Just before it went to auction at a guide price of £150,000 to £160,000,
0:15:12 > 0:15:15'this place was on the market for 200 grand.
0:15:15 > 0:15:19'Let's get the lowdown from a local estate agent.'
0:15:22 > 0:15:24The property could be used in many ways.
0:15:24 > 0:15:28A home for someone, possibly a holiday home,
0:15:28 > 0:15:30because it's so close to the beach.
0:15:30 > 0:15:34And there is huge demand for rental here for this type of property.
0:15:36 > 0:15:41'That's good to know. So how much could it make if rented out?'
0:15:41 > 0:15:46Once renovated, I would recommend a rental income of £750 per calendar month.
0:15:46 > 0:15:49'What if the bungalow was done up and put up for sale?'
0:15:49 > 0:15:55I would anticipate a resale price of £225,000.
0:15:55 > 0:16:00This bungalow needs totally modernising.
0:16:00 > 0:16:03A new kitchen, a new bathroom, windows.
0:16:03 > 0:16:05The list just goes on and on.
0:16:05 > 0:16:10But, bought at the right price, this could be somebody's little holiday hideaway.
0:16:10 > 0:16:13Let's see what happened when it went to auction.
0:16:14 > 0:16:18150-160, the guide. Start me at 150,000.
0:16:18 > 0:16:20140, then, to start.
0:16:20 > 0:16:23140 I have. Thank you very much in the door.
0:16:23 > 0:16:25145 is bid. And 150.
0:16:25 > 0:16:28Is that a bid? 150 I'm bid.
0:16:28 > 0:16:30151. 152.
0:16:30 > 0:16:32152. 154.
0:16:32 > 0:16:34No? 152 at the back.
0:16:34 > 0:16:37£152,000 is bid.
0:16:37 > 0:16:39154 do I see?
0:16:39 > 0:16:44Well, at £152,000 at the very back of the room.
0:16:44 > 0:16:47154 I have in a fresh place. 156.
0:16:47 > 0:16:51158. 158. 159.
0:16:51 > 0:16:52159 is bid. 160 I have.
0:16:52 > 0:16:55161. 162.
0:16:55 > 0:16:59163. 163. And 164.
0:17:00 > 0:17:04164 is bid. 165 I have. 166.
0:17:04 > 0:17:0766 is bid. 67.
0:17:08 > 0:17:11168 for you. 168 is bid.
0:17:11 > 0:17:15170? 170 I have. 172.
0:17:18 > 0:17:20172. 174?
0:17:21 > 0:17:26172 I'm bid. 172. I shall sell if there's no further advance.
0:17:26 > 0:17:30172 at the back of the room. Are you all done?
0:17:30 > 0:17:32Sold at £172,000.
0:17:34 > 0:17:37# I am the king...
0:17:37 > 0:17:41'It was Bill who bought the bungalow for £172,000.
0:17:41 > 0:17:46'He's a self-employed plumber and spends his time between jobs backpacking around the world.'
0:17:50 > 0:17:54- Bill, congratulations. Well done. - Thank you.
0:17:54 > 0:17:57- Why did you want to buy this property in Westbrook? - Just as an investment.
0:17:57 > 0:18:02Somewhere to live and maybe generate an income while I do some travelling.
0:18:05 > 0:18:11'Bill likes to keep on the move, so he wants to get in, get started and then sell on at a profit.'
0:18:11 > 0:18:12# They call me the wanderer
0:18:12 > 0:18:15# Yeah, the wanderer
0:18:15 > 0:18:18# I roam around and round and round and round
0:18:18 > 0:18:21'He sold his last property three and a half years ago.
0:18:21 > 0:18:24'Why did he go for this 1930s bungalow?'
0:18:25 > 0:18:29It's got a very nice feel. The rooms are nice sizes and it just felt right.
0:18:29 > 0:18:33I've got to say, bungalows do offer a lot more space, don't they?
0:18:33 > 0:18:36It's got quite a nice size footprint.
0:18:36 > 0:18:41Both the bedrooms are double rooms, which is ideal. The kitchen's a nice size, living room.
0:18:41 > 0:18:45- It's just got a nice feeling about it.- Now, there's no back garden.
0:18:45 > 0:18:47Do you think that will be a drawback?
0:18:47 > 0:18:50I would imagine it's a retired person's bungalow
0:18:50 > 0:18:53at some point in the future
0:18:53 > 0:18:56and do they really want a big garden?
0:18:56 > 0:19:01You've got a relatively short walk to the beach if you want to walk a dog.
0:19:01 > 0:19:05- There's plenty of open space that you can use if you wanted to. - That is a very valid point.
0:19:08 > 0:19:13'Bill's spent 20 years in the plumbing trade. He's built up a lot of contacts and experience
0:19:13 > 0:19:17'and will be calling in some favours to help him.'
0:19:17 > 0:19:19My skills are going to be needed in here.
0:19:19 > 0:19:25- There was lots of dripping taps and noises when I first walked in.- Yeah, the plumbing is a bit worse for wear.
0:19:25 > 0:19:29I will certainly do the bulk of the plumbing work,
0:19:29 > 0:19:34decorations, and I've got some friends that have said they'll help out.
0:19:34 > 0:19:38Will you be basing yourself here, living here and doing the work at the same time?
0:19:38 > 0:19:46Yeah. I've done that several times before with projects for paying customers.
0:19:46 > 0:19:51It means I can work till 8 or 9 o'clock in the evening and try and get the job done a bit quicker.
0:19:51 > 0:19:54That's music to my ears, a plumber working until 8 o'clock!
0:19:54 > 0:19:58- What's going on? Is that what you do?- I do it quite regularly, yes.
0:19:58 > 0:20:02'So what's Bill planning on doing here?'
0:20:02 > 0:20:07We'd like to keep the front door. It's quite a nice original feature.
0:20:07 > 0:20:13Probably double glaze, certainly rewire, complete re-plumb, kitchen, bathroom.
0:20:13 > 0:20:18Maybe take the chimney stack and the chimney breast down to square the kitchen off.
0:20:18 > 0:20:23Take the pantry out, also, to make the kitchen a better, useable space.
0:20:23 > 0:20:26And then decoration right through and carpets.
0:20:26 > 0:20:31- That's quite a long list. - It's going to be involved.
0:20:31 > 0:20:35- What's your budget for the work? - I'd initially thought 20K,
0:20:35 > 0:20:38but I would like to try and come in below that if I can.
0:20:41 > 0:20:45'Bill will keep a keen eye on those purse strings
0:20:45 > 0:20:48'as he'll need every penny of profit he can get here.'
0:20:49 > 0:20:55Ideally, it would be nice to spend a few months every year somewhere nice and warm.
0:20:55 > 0:21:00- To be away for the winter would be fantastic.- So you've bought this property, you want to renovate it,
0:21:00 > 0:21:04try and get some cash out of it and then clear off travelling.
0:21:04 > 0:21:07And then... yeah, go off and enjoy myself.
0:21:11 > 0:21:15'If all goes to plan, Bill will renovate this place within six months and sell it on.
0:21:15 > 0:21:20'He'll use some of the profit to go to Australia. But what if things don't go to plan?'
0:21:22 > 0:21:27If you can't sell this property and you can't get the value that you want from this property,
0:21:27 > 0:21:34what about letting it out? You are in the seaside, summer season, holiday let land.
0:21:34 > 0:21:38- Have you thought about that? - That's not an avenue I'd looked at.
0:21:38 > 0:21:43- I hadn't really considered holiday lets. Might be worth looking into. - Mm.
0:21:43 > 0:21:48And it would mean that, possibly, I'd have somewhere to come back to when I've finished my travels.
0:21:48 > 0:21:53- Exactly. It's only seasonal but it could work. Are you looking forward to cracking on?- Oh, yeah.
0:21:53 > 0:21:59I take real pride in the before and the after. To tear it to bits
0:21:59 > 0:22:03and build it back up and see a real difference and a quality finish makes me happy.
0:22:03 > 0:22:08Bill, good luck. It's been brilliant meeting you today and I hope it all goes really well
0:22:08 > 0:22:11- and it ends up the way you want it to be.- Thank you.
0:22:11 > 0:22:14Bill's bought a bungalow and a backpack.
0:22:14 > 0:22:19The question is, will this little house give him the chance to spend his winters away
0:22:19 > 0:22:22and fund his globe-trotting lifestyle?
0:22:22 > 0:22:25You can find out how it goes for him later in the programme.
0:22:28 > 0:22:34'Coming up, it might all come tumbling down in Plymouth.'
0:22:34 > 0:22:38The ceiling is in a bit of a dicey state, so I won't go into that room.
0:22:39 > 0:22:45'Back in Margate, will Bill's bungalow be finished in time for his next adventure?'
0:22:45 > 0:22:48There's been a delay on the windows, which put the whole project behind.
0:22:51 > 0:22:55'But first, in Cardiff, will there be anything left after this renovation?'
0:22:55 > 0:22:58All of a sudden, most of the wall just collapsed.
0:23:04 > 0:23:11'We're going back to Cardiff now to catch up with long-time friends and first-time developers Mo and Mo.
0:23:11 > 0:23:15'They bought this two-bed end of terrace for 75 grand
0:23:15 > 0:23:18'and were pretty confident they were on easy street.'
0:23:19 > 0:23:26This is small enough to kick off and it's safe and nothing can go wrong as far as we are concerned.
0:23:26 > 0:23:29- Famous last words. - THEY LAUGH
0:23:29 > 0:23:33'They wanted to update this unloved property completely.
0:23:33 > 0:23:37'They were going to demolish the lean-to that housed the tiny kitchen,
0:23:37 > 0:23:40'which, bizarrely, led straight off the bathroom.
0:23:40 > 0:23:44'They planned to replace it with a two-storey extension.
0:23:44 > 0:23:48'Well, four months later, let's see if it's been as easy as they hoped.
0:24:01 > 0:24:06'Mo and Mo have taken a cramped old terraced property
0:24:06 > 0:24:11'and transformed it into a modern, spacious and beautiful home.
0:24:11 > 0:24:15'The centrepiece is the open-plan kitchen-diner.'
0:24:16 > 0:24:22Well, in this area, we had a dilapidated single-storey, single-brick, lean-to extension
0:24:22 > 0:24:27which we demolished and created a huge amount of space here
0:24:27 > 0:24:31by putting in a nice, spacious kitchen.
0:24:31 > 0:24:37The previous kitchen we had here actually was barely 1.5x2.5 metres.
0:24:37 > 0:24:41You could hardly even swing a mouse, let alone a cat.
0:24:41 > 0:24:47And by making this space so much bigger, that allowed us to put the boiler in a much better position.
0:24:47 > 0:24:51And, of course, the bathroom is on this side, at the back of the kitchen,
0:24:51 > 0:24:55completely tucked away but, at the same time, very accessible.
0:24:57 > 0:25:01'Mo and Mo decided to avoid the rigmarole of applying for planning permission
0:25:01 > 0:25:04'and kept their extension to a single storey.
0:25:05 > 0:25:08'Under the Permitted Development Scheme,
0:25:08 > 0:25:11'with some exception such as listed buildings and conservation areas,
0:25:11 > 0:25:18'homeowners can add a single-storey extension of up to three metres depth without planning consent.
0:25:18 > 0:25:21'The extension has also allowed the two Mos to open up
0:25:21 > 0:25:24'the previously enclosed stairs.'
0:25:24 > 0:25:28We had to take the other staircase out, put this new staircase in
0:25:28 > 0:25:33and at the bottom, we had a quarter landing with two rises coming down.
0:25:33 > 0:25:36We did balustrades and posts
0:25:36 > 0:25:39and it really made a feature of the room.
0:25:42 > 0:25:46'Upstairs, the two bedrooms have been completely modernised
0:25:46 > 0:25:50'and continue the unfussy minimalist theme in the rest of the house.
0:25:56 > 0:25:59'But it wasn't as straightforward as they predicted,
0:25:59 > 0:26:04'especially when it came to removing the old plaster from the living room walls.'
0:26:04 > 0:26:10That was a big shocker for us, because we opted to completely renovate and modernise the house,
0:26:10 > 0:26:13so we were hacking off all of the walls.
0:26:13 > 0:26:16All of a sudden, most of the wall just collapsed.
0:26:16 > 0:26:22And I think it was incredibly lucky that neither of us were on that side where the wall collapsed.
0:26:22 > 0:26:26So, of course, we had to replace that with a new wall.
0:26:26 > 0:26:32The house is basically completely new, except the bricks and mortar.
0:26:32 > 0:26:36The floors, the ceilings, the walls have all been hacked off.
0:26:36 > 0:26:40We've put in new ceiling, new plasterboard, new wiring, new plumbing.
0:26:40 > 0:26:46Everything. New doors. So there is nothing except mortar and bricks.
0:26:49 > 0:26:53'The list just goes on. They've even repainted the outside of the house
0:26:53 > 0:26:56'and had a new roof put on.
0:26:56 > 0:27:00'They achieved all this within ten weeks of starting.
0:27:00 > 0:27:03'But did they manage to do it within their original budget?'
0:27:04 > 0:27:11We were, in ball-park figures, considering that we would be spending about £25,000.
0:27:11 > 0:27:15But, on closer examination of the figures,
0:27:15 > 0:27:19I think we're going to be looking at around £30,000.
0:27:20 > 0:27:27'With a purchase price of £75,000, that brings their total spend to £105,000.
0:27:30 > 0:27:33'Time to hear from two local property experts
0:27:33 > 0:27:36'how much value they've added here.'
0:27:36 > 0:27:39What a transformation and a wow factor.
0:27:39 > 0:27:43The initial impression did take my breath away.
0:27:43 > 0:27:46I'm impressed that they've opened up the staircase.
0:27:46 > 0:27:49I think that really works. Great feeling of space
0:27:49 > 0:27:54and plenty of opportunity to put furniture in there, leaving all sorts of opportunity for a buyer.
0:27:54 > 0:28:00In my opinion, the resale value of this property will be £130,000 to £135,000.
0:28:00 > 0:28:04It has that wow factor. The limitation is the fact that it's two bedrooms,
0:28:04 > 0:28:07but I do think we can reach the upper end of the optimum.
0:28:07 > 0:28:13I think, realistically, you probably would be looking between £130,000 and £135,000.
0:28:15 > 0:28:21'If they achieve that figure, the two Mos could pocket a pre-tax profit of £30,000,
0:28:21 > 0:28:24'minus the usual selling expenses.
0:28:24 > 0:28:28'Are they pleased with the fruits of their labour?'
0:28:28 > 0:28:31Very low. Very low.
0:28:31 > 0:28:36We expect to sell this house for a minimum of £140,000.
0:28:37 > 0:28:43Because not long ago, two or three houses up sold for how much?
0:28:43 > 0:28:45I think about £140,000.
0:28:45 > 0:28:51£140,000. And it wasn't refurbished to this standard.
0:28:51 > 0:28:55'If they're not happy with the resale valuation,
0:28:55 > 0:28:58'what about the rental market?'
0:28:58 > 0:29:02The rental expectancy for this property would be £600 per calendar month.
0:29:03 > 0:29:07'Bearing in mind their total outlay of £105,000,
0:29:07 > 0:29:12'that could be a healthy rental yield of between 6 percent and 7 percent.
0:29:13 > 0:29:18I agree with their figures. Their figures match up with our expectation.
0:29:18 > 0:29:20But that is our plan B
0:29:21 > 0:29:27If we do not get what we want to sell it, we might consider plan B.
0:29:30 > 0:29:35'Mo and Mo have done a great job with their first renovation project.
0:29:35 > 0:29:38'They may be disappointed with the resale valuations,
0:29:38 > 0:29:41'but still stand to make a healthy profit.
0:29:41 > 0:29:45'After all the hard work, are they still good friends?'
0:29:45 > 0:29:48You may remember that we did say that the most important thing for us
0:29:48 > 0:29:53was that, on a business front, for us to get to know each other.
0:29:53 > 0:29:58- We're still talking.- And hope to be able to work together. And, yes, we are still talking.
0:29:58 > 0:30:02- So that's, I suppose, a big bonus. - THEY LAUGH
0:30:12 > 0:30:15# It keeps raining and raining
0:30:17 > 0:30:22Well, I'm here in studentville in the area of Plymouth known as Mutley.
0:30:22 > 0:30:26I'm here to see a two-bedroom flat. It had a guide price of £65,000.
0:30:26 > 0:30:30But in the words of Dastardly and Mutley, the cartoon characters,
0:30:30 > 0:30:35- will this place be worth a medal? - HE IMITATES MUTLEY'S LAUGH - Let's find out.
0:30:37 > 0:30:41'With these two lions standing guard, it's certainly a grand entrance.
0:30:41 > 0:30:43'But this is a first-floor flat.
0:30:43 > 0:30:46'Will that splendour continue upstairs?'
0:30:46 > 0:30:50Wow, wow, wow, wow, wow! Look at this!
0:30:50 > 0:30:53So unexpected! The height of the ceilings!
0:30:53 > 0:30:58Absolutely fantastic. Oh, dear, a few problems with damp there.
0:30:58 > 0:31:04It doesn't put me off. I love this place already. Bathroom and toilet on this mezzanine floor.
0:31:04 > 0:31:08Up onto a really nice size landing. Two bedrooms. First one there.
0:31:08 > 0:31:13Ceiling is in a bit of a dicey state, so I'm not going to go into that room there,
0:31:13 > 0:31:18but it's of a similar size to the one next door, so let's have a look in there.
0:31:18 > 0:31:23It's actually a really nice size in here, with some original features, like the ceiling rose,
0:31:23 > 0:31:26although the ceiling in here also looks like it needs a bit of care
0:31:26 > 0:31:29or basically needs replacing.
0:31:29 > 0:31:31The room itself, good size. It's got a fire.
0:31:31 > 0:31:34Open the fireplace up, make some kind of a feature.
0:31:34 > 0:31:36Have this as a bedroom maybe, or a lounge.
0:31:36 > 0:31:41The only slight concern, perhaps, is that you're right on a fairly busy junction.
0:31:41 > 0:31:44Is that a bad thing? Yes and no.
0:31:44 > 0:31:48It means this property is slap-bang in the centre of Mutley,
0:31:48 > 0:31:51literally staggering distance from pubs, bars, restaurants.
0:31:51 > 0:31:56It's perfect. As locations go, it doesn't get much better than this in Plymouth.
0:31:59 > 0:32:03'As well as benefitting from the social scene right on their doorstep,
0:32:03 > 0:32:10'the buyer of this flat can relax in the knowledge that the 99-year lease was renewed in 2007.
0:32:10 > 0:32:12'If the lease was much less than that,
0:32:12 > 0:32:17'the new owner would have to enter into potentially costly negotiations with the freeholder.'
0:32:19 > 0:32:25It's so rare in a flat like this to find some of the original features just untouched.
0:32:25 > 0:32:29But look at this on the landing here, this beautiful stained-glass window.
0:32:29 > 0:32:31I mean, it's absolutely gorgeous.
0:32:31 > 0:32:35And complemented by this wallpaper.
0:32:35 > 0:32:39Don't get your steam stripper out and take this off.
0:32:39 > 0:32:43If you can find some way of restoring it, it's a lovely thing to keep
0:32:43 > 0:32:49and just adds in those character features which make this place really stand out.
0:32:52 > 0:32:58'As well as dealing with that wallpaper, the light, airy kitchen needs to be completely updated.
0:32:58 > 0:33:01'The lounge is a bit on the pokey side,
0:33:01 > 0:33:03'but has a lovely fireplace.
0:33:03 > 0:33:08'On a practical note, there's a purpose-built fire escape at the back.
0:33:08 > 0:33:14'Back inside, the nicotine-stained walls throughout mean lots of hard graft ahead.
0:33:14 > 0:33:21'If you can see the beauty behind the smoke screen, there's plenty to get passionate about here.'
0:33:21 > 0:33:25# You must realise
0:33:25 > 0:33:28# Smoke gets in your eyes
0:33:28 > 0:33:31'What does the auctioneer who sold the property
0:33:31 > 0:33:35'make of the area and the options for the flat?'
0:33:35 > 0:33:39Property prices in Mutley generally hold themselves up quite well,
0:33:39 > 0:33:42because so many of them are investment vehicles
0:33:42 > 0:33:45and there's such a high demand for rental accommodation here.
0:33:45 > 0:33:48'So, Mutley itself sounds like a good area.
0:33:48 > 0:33:51'But I want the lowdown on this flat.'
0:33:51 > 0:33:54I really, really like this property.
0:33:54 > 0:33:58It's got so many angles. It can either be bought and done up and sold on
0:33:58 > 0:34:04or lived in by the buyer or it could be, should be, a rent machine,
0:34:04 > 0:34:08either as one whole flat, nice and easy,
0:34:08 > 0:34:11or two student bedrooms.
0:34:12 > 0:34:16'Bearing in mind the auction guide price of £65,000,
0:34:16 > 0:34:20'what sort of figure could it reach once restored to its former glory?'
0:34:22 > 0:34:29Once renovated, I would think it probably would have a value in the region of about £100,000.
0:34:29 > 0:34:35'But surely most buyers will be looking at this as a rental investment.'
0:34:35 > 0:34:37The property is a perfect rental unit
0:34:37 > 0:34:40and on a rolling 12-month tenancy,
0:34:40 > 0:34:44you could expect to get £500 per calendar month, maybe a smidgen more.
0:34:44 > 0:34:47On a room-by-room letting basis,
0:34:47 > 0:34:51you could probably get £85 or £95 a week for each room,
0:34:51 > 0:34:54which would equate to just about £700 per calendar month.
0:34:54 > 0:34:57But you might not get 52 weeks a year from a student let.
0:34:57 > 0:35:02So, a really nice flat. Yes, it needs a bit of work, but it's got lots going for it.
0:35:02 > 0:35:05Good location, so you could potentially rent to students,
0:35:05 > 0:35:09or just create something that would be a very desirable place to live.
0:35:09 > 0:35:13Wouldn't be too difficult. Let's see who fancied it when it went under the hammer.
0:35:13 > 0:35:18OK, we're in the city. First-floor flat, makeover needed.
0:35:18 > 0:35:23Who's going to say to us 60? 60. 60,000 straight in for lot 72.
0:35:23 > 0:35:2560, thank you. 62. 64.
0:35:25 > 0:35:2866. 68.
0:35:28 > 0:35:31You telling me that's not worth 70? 70. At 70.
0:35:31 > 0:35:33Would 1,000 help, perhaps?
0:35:33 > 0:35:3671. 72. At 72.
0:35:36 > 0:35:41At 72. And a tiny one? 73. He does say 73.
0:35:41 > 0:35:43Not even a half?
0:35:43 > 0:35:4973 and a half. 75 or 74? 75.
0:35:49 > 0:35:52Thank you, sir. 75. At 75.
0:35:52 > 0:35:56At 75. At 75 once on the left.
0:35:56 > 0:35:59At 75 twice on the left.
0:35:59 > 0:36:04At 75, are you sure and done? Here's your last chance. Selling at...
0:36:04 > 0:36:0675 and a half.
0:36:06 > 0:36:0875 and a half.
0:36:08 > 0:36:1176. At 76.
0:36:11 > 0:36:14At 76 on my left once.
0:36:14 > 0:36:17Oh, please. If you're looking at the face I'm looking at!
0:36:17 > 0:36:20At 76 once.
0:36:20 > 0:36:23At 76 twice. On the left. It will be sold at 76.
0:36:23 > 0:36:25And done at that.
0:36:25 > 0:36:2976, gentleman on the left. Thanks for your perseverance.
0:36:31 > 0:36:35'After quite a bidding battle, former film cameraman
0:36:35 > 0:36:41'and now full-time dad Jonathan won through to become the new owner of the flat.'
0:36:41 > 0:36:44# Daddy, daddy cool
0:36:45 > 0:36:48'But was paying £11,000 over the guide price a wise move?
0:36:48 > 0:36:52'And what does he plan to do with the place?'
0:36:52 > 0:36:54- Jonathan, good to meet you. - And you.- Well done.
0:36:54 > 0:37:00- Congratulations. Why did you want to buy the flat?- When I saw it, it was what I was looking for.
0:37:00 > 0:37:03I'd seen a good half dozen other flats around Plymouth
0:37:03 > 0:37:08and they were small, pokey and didn't need that much doing to them.
0:37:08 > 0:37:14- Whereas this one is the complete opposite.- What's the game plan?
0:37:14 > 0:37:16I suppose a way of making money.
0:37:16 > 0:37:20Erm, I could rent it, but I'll probably sell it
0:37:20 > 0:37:24and have some pleasure in doing it up, because it's a lovely old building.
0:37:26 > 0:37:29'Sounds like Jonathan's in love with the place already.
0:37:29 > 0:37:32'Does he know what he's letting himself in for?'
0:37:32 > 0:37:38Well, for the last three and a half years, I've been a house husband looking after my little boy.
0:37:38 > 0:37:43- Great.- And he's turned out into a real beautiful chap, of course.
0:37:43 > 0:37:49And I was looking for something to get me back out into the real world.
0:37:49 > 0:37:51So this is it.
0:37:51 > 0:37:56So what was it about this particular flat that you really liked?
0:37:56 > 0:38:02It was the fact that it needed so much doing to it and I felt that I would enjoy working in a place
0:38:02 > 0:38:06that originally had so much craftsmanship in its construction.
0:38:06 > 0:38:11And so it's a restoration project for me, really, that I'll enjoy doing.
0:38:11 > 0:38:14Will you be spending your time actually physically doing the work?
0:38:14 > 0:38:18Yeah. Because it's very labour intensive, it's a lot of cleaning up,
0:38:18 > 0:38:21stripping back, that sort of thing.
0:38:21 > 0:38:25Do you have any idea how much it's going to cost to get it back up to scratch?
0:38:25 > 0:38:31Well, I thought around £10,000, but it could be a lot more than that.
0:38:31 > 0:38:33It depends how much I can do myself.
0:38:33 > 0:38:39One of the first things, a gas condensing boiler to be fitted.
0:38:39 > 0:38:44Then central heating. I'd like to get some antique radiators,
0:38:44 > 0:38:48cos I don't think the modern slim-line version would quite fit.
0:38:48 > 0:38:53They wouldn't look right in these spacious rooms. Rebuilding the kitchen, the bathroom,
0:38:53 > 0:38:57most of the woodwork stripped right back to the bare wood.
0:39:02 > 0:39:06'But it's not just superficial work needed here.
0:39:06 > 0:39:12'There could be trouble ahead. Remember, the ceiling in one of the bedrooms has been deemed unsafe.
0:39:12 > 0:39:18'Jonathan will have to get stuck in straight away to sort out the water damage.'
0:39:18 > 0:39:21There is a bit of a problem with damp, isn't there?
0:39:21 > 0:39:27It's rained heavily this morning and I've noticed there's a running water problem in the hallway.
0:39:27 > 0:39:31I'll have to get up in the loft and have a look at that as soon as you're gone,
0:39:31 > 0:39:33- before the plaster starts falling off.- Yes.
0:39:33 > 0:39:37- How long do you think it's going to take? - I hope not longer than six months,
0:39:37 > 0:39:40but it could go on longer. It doesn't really matter.
0:39:40 > 0:39:46- As long as I'm enjoying doing it, I'll just carry on.- Sounds like it's going to be a labour of love.
0:39:46 > 0:39:52- Yeah, you could say that.- How are you going to bring yourself to sell it?
0:39:52 > 0:39:54Erm, because I'm a pragmatist.
0:39:54 > 0:39:59- Really?- So I can love doing it but I can also love selling it and putting the money in the bank.
0:39:59 > 0:40:03- Right. You can be that cut and dried about it?- Oh, I'm very harsh. - Are you sure?- Yes.
0:40:03 > 0:40:07- When we come back and it looks beautiful, are you sure?- Yeah.
0:40:07 > 0:40:12- Listen, good luck with it all and I look forward to seeing how you get on.- Cheers.- All the best.
0:40:12 > 0:40:17Well, Jonathan certainly seems to have found a property that he genuinely loves
0:40:17 > 0:40:20and he's excited about the prospect of doing it up.
0:40:20 > 0:40:23The only thing that might happen in those circumstance
0:40:23 > 0:40:26is that your budget goes completely out of the window
0:40:26 > 0:40:30as you restore intricately all these beautiful period features.
0:40:30 > 0:40:34And you've got to remember what you're going to do with it in the end.
0:40:34 > 0:40:36If it's profit, you've got to be careful.
0:40:36 > 0:40:39Find out how he gets on later in the show.
0:40:41 > 0:40:47Finding good tradesmen is the key to getting properties done up to a high standard and on time.
0:40:47 > 0:40:52But sometimes people take on a lot of the work themselves to save money.
0:40:52 > 0:40:57So have today's buyers been getting stuck in or just stuck? Let's find out.
0:41:03 > 0:41:08'We're travelling back to Margate now to catch up with perennial backpacker Bill.
0:41:08 > 0:41:11'He bought this bungalow in the Westbrook area of the town.
0:41:11 > 0:41:16'A plumber by trade, Bill was going to do everything in between his paid work.
0:41:16 > 0:41:21'He certainly had plenty on his hands, as the property was crying out to be completely updated.
0:41:21 > 0:41:26'He hoped to make enough to finance his next trip to Australia.'
0:41:29 > 0:41:34- Why did you want to buy this property in Westbrook? - Just as an investment, really.
0:41:34 > 0:41:40Somewhere to live and to maybe generate an income while I go off and do some travelling.
0:41:41 > 0:41:46'The property is just 400 yards from the beach and very well proportioned.
0:41:46 > 0:41:52'Bill paid £172,000 for the bungalow and had a budget of £20,000 to do the renovation.
0:41:52 > 0:41:57'Six and a half months into the project, has he finished the refurbishment
0:41:57 > 0:42:00'and booked his flight to Australia?'
0:42:08 > 0:42:11'Well, it seems his wings have been clipped for the moment,
0:42:11 > 0:42:14'as the work is still progressing.
0:42:16 > 0:42:21'But Bill's aiming for a high-end finish in the bungalow, as you can see in the kitchen.'
0:42:24 > 0:42:27A lot of work happened in the kitchen. The chimney breast has come down.
0:42:27 > 0:42:32The door has moved from this unit area to there.
0:42:32 > 0:42:35We've fitted a nice, new kitchen.
0:42:35 > 0:42:40We've installed a new window and the nice new oak worktops
0:42:40 > 0:42:43with the drainer grooves routed into the top.
0:42:43 > 0:42:45It's had five coats of oil so far.
0:42:49 > 0:42:51'Bill's really tried to make the most of the space here.
0:42:51 > 0:42:56'By moving the kitchen doorway, he's been able to increase the size of the bathroom.
0:42:59 > 0:43:03'And with a slight reconfiguration of the tiny separate toilet,
0:43:03 > 0:43:06'he's creating an en suite wet room off one of the bedrooms.
0:43:08 > 0:43:11'One of the improvements that really helps transform the house
0:43:11 > 0:43:14'are the custom-made windows.'
0:43:14 > 0:43:17As part of the double-glazing project for the building,
0:43:17 > 0:43:21we've redone both bay windows in the bedrooms,
0:43:21 > 0:43:23which had been done not extremely well in the past,
0:43:23 > 0:43:28by including the glazed side panels on both windows.
0:43:29 > 0:43:35'And it's the windows that have caused the biggest headache of the whole project so far.'
0:43:35 > 0:43:40The windows were promised in four to six weeks.
0:43:40 > 0:43:43But they actually took eight before they arrived
0:43:43 > 0:43:46and one of the windows had been forgotten, which took another three weeks.
0:43:46 > 0:43:51So big delay on the windows, which kind of put the whole project behind.
0:43:51 > 0:43:56'Apart from the stresses of the renovation, is he happy with how it's all coming together?'
0:43:56 > 0:44:01The vision I had in my head is beginning to materialise.
0:44:01 > 0:44:06Although, it kind of does change along the way.
0:44:06 > 0:44:11And, unfortunately, nobody else is privy to the information that's in there,
0:44:11 > 0:44:17and it kind of infuriates me at times when people aren't working towards your vision.
0:44:17 > 0:44:20But they can't see it, so how can they?
0:44:24 > 0:44:27'The lean-to outside has been re-roofed
0:44:27 > 0:44:30'and the entire property rewired and re-plumbed.
0:44:33 > 0:44:38'Bill's going to owe his friends quite a few drinks by the time he's finished the bungalow.'
0:44:40 > 0:44:46I've roped in various different friends at various points throughout the project
0:44:46 > 0:44:50to come down and just give us a hand with lifting and carrying,
0:44:50 > 0:44:54certainly the decorating.
0:44:54 > 0:44:58A young friend of mine has done quite a bit of the decorating.
0:44:58 > 0:45:00I've not really picked up a paint brush
0:45:00 > 0:45:04The bulk of the carpentry, the new doors and stuff, I had to get someone in for.
0:45:04 > 0:45:08The plastering, contractors, the electrics, contractors.
0:45:08 > 0:45:14But all of the demolition and plasterboarding the new ceilings
0:45:14 > 0:45:17has kind of been done by myself.
0:45:21 > 0:45:25'Bill's no stranger to roughing it, as his passion is backpacking.
0:45:25 > 0:45:28'His living arrangements have been pretty flexible
0:45:28 > 0:45:31'whilst he's been working on the bungalow or his plumbing jobs.'
0:45:31 > 0:45:38I've stayed at my mum's, I've stayed here on many occasions.
0:45:38 > 0:45:43If I'm working away, then I'll stay at my girlfriend's house,
0:45:43 > 0:45:45or anyone that will put me up.
0:45:45 > 0:45:53If I happen to be working in an empty house, then there's always a sleeping bag and an air bed in the van
0:45:53 > 0:45:58and as long as I can get some shut-eye, then I'm happy.
0:46:00 > 0:46:04'So far, Bill's managed to keep within his budget of £20,000.
0:46:04 > 0:46:06'But he's still got to buy and fit a combi-boiler.
0:46:06 > 0:46:12'Then he's going to add the latest of mod-cons, heated skirting boards instead of radiators.'
0:46:17 > 0:46:20I think another couple of months should see it finished.
0:46:20 > 0:46:23I think, if I could get a four-week solid time period
0:46:23 > 0:46:28with all the materials on site and not having to go and do any work,
0:46:28 > 0:46:31then I could be finished in that time.
0:46:31 > 0:46:35But, realistically, I think probably,
0:46:35 > 0:46:40allowing for the fact that I've got to go to work, probably another three months.
0:46:44 > 0:46:46'After six and a half months on the project,
0:46:46 > 0:46:49'Bill's spent £190,000,
0:46:49 > 0:46:53'including that £172,000 purchase price.
0:46:53 > 0:46:56'He reckons completing the work will cost another five grand,
0:46:56 > 0:47:00'taking his total outlay to £195,000.
0:47:00 > 0:47:05'Has it been a good investment? Let's get the lowdown from two local estate agents.'
0:47:07 > 0:47:12My first impression of the house is it's a very nice finish.
0:47:12 > 0:47:15It's a very contemporary, minimalistic sort of feel
0:47:15 > 0:47:19and I think it's very high standard and very well done.
0:47:19 > 0:47:22The biggest selling point of this property, in my opinion,
0:47:22 > 0:47:25would be the location. Also, the lovely kitchen.
0:47:25 > 0:47:29The size of the kitchen, I think, will be the main selling point.
0:47:30 > 0:47:34'So far, so good. But has Bill added value?
0:47:34 > 0:47:37'What could it sell for in a finished state?'
0:47:38 > 0:47:42I feel the current value would be £250,000.
0:47:42 > 0:47:47When completed, I would recommend marketing this property at £250,000.
0:47:49 > 0:47:52'Bill's still got to finish here, but it looks like he could clean up
0:47:52 > 0:47:57'with a pre-tax profit of around 55 grand!'
0:47:57 > 0:48:00That's fantastic. A lot more than I anticipated.
0:48:00 > 0:48:05Makes all those late nights worthwhile. Fantastic!
0:48:05 > 0:48:10'And there's more good news if Bill were to decide to rent the property out.'
0:48:10 > 0:48:14I would recommend a rental of £700 per calendar month.
0:48:14 > 0:48:19I feel the rental value will be roughly around £700 per calendar month.
0:48:19 > 0:48:26Interesting. I don't think I'd like to go the rental route, but it's nice to know.
0:48:27 > 0:48:32'So does that mean Bill will be putting it on the market as soon as he's finished
0:48:32 > 0:48:34'so he can go globe-trotting again?'
0:48:34 > 0:48:39I think I'm going to move in, certainly for the short term,
0:48:39 > 0:48:42see what the area's like,
0:48:42 > 0:48:44how nice it is to be here,
0:48:44 > 0:48:50and if I can generate some local work so I don't need to keep commuting
0:48:50 > 0:48:54then I would like to stay. But I do want to do some more travelling, as well,
0:48:54 > 0:48:57so I don't think it'll be a forever home.
0:48:57 > 0:49:01But certainly for a minimum of six months, maybe a couple of years.
0:49:06 > 0:49:10'We're back in Plymouth to catch up with full-time dad Jonathan.
0:49:10 > 0:49:14'He purchased this first-floor flat in the Mutley area of the city.
0:49:17 > 0:49:21'The property needed a lot of work, but had oodles of potential.
0:49:21 > 0:49:29'Jonathan paid £76,000 for it and it was obviously going to be a labour of love.'
0:49:29 > 0:49:34- Tell me why you wanted to buy the flat.- As soon as I saw it, I thought it was what I was looking for.
0:49:34 > 0:49:40It was the fact that it needed so much doing to it. So it's a restoration project for me, really.
0:49:41 > 0:49:45'He certainly had his work cut out. Water was coming in through the roof
0:49:45 > 0:49:48'and running down the wall in the hallway.
0:49:48 > 0:49:52'The ceiling in one of the bedrooms was unsafe
0:49:52 > 0:49:56'and the rest of the flat needed to be completely renovated.
0:49:56 > 0:50:00'Jonathan had a budget of just £10,000 to do everything.
0:50:00 > 0:50:04'How's he getting on nine months after we first met him?
0:50:18 > 0:50:23'Although he's not quite finished, Jonathan's really excelled himself.
0:50:23 > 0:50:27'He's taken a dilapidated flat and created a unique home,
0:50:27 > 0:50:30'preserving many of the original features.
0:50:31 > 0:50:39'He's gone to great lengths to painstakingly restore the beautiful frame on this stained-glass window.'
0:50:40 > 0:50:46There was a point where I wished I hadn't started. I did try a heat gun very gently around the frame,
0:50:46 > 0:50:49but I did manage to crack that piece of glass there.
0:50:49 > 0:50:55In quite an attractive way, but I didn't really want to do any more cracks,
0:50:55 > 0:50:58so after that, it was just scrape.
0:50:58 > 0:51:04I did try paint stripper, but that didn't seem to have any effect on these old layers of paint.
0:51:04 > 0:51:07So it was just scraping, really.
0:51:08 > 0:51:12'In the kitchen, Jonathan's installed a combi-boiler
0:51:12 > 0:51:16'and replaced all the units, to turn it into a family-friendly breakfast room.
0:51:18 > 0:51:20'He's made the best use of the small bathroom
0:51:20 > 0:51:25by fitting a space-saving suite and a combined bath and shower.'
0:51:26 > 0:51:30The bathroom was, by far, the hardest part. I thought I'd never get out of there.
0:51:30 > 0:51:36I was just chipping away at the wall, I was trying to make that bath fit, learning how to do plumbing.
0:51:36 > 0:51:41It was a lot of work, it went on for a long time and I wasn't getting much fulfilment from it.
0:51:41 > 0:51:46So by the time I'd finished the bathroom, I was glad to be out of there and didn't look back.
0:51:46 > 0:51:52'When Jonathan bought the flat, the ceiling in one of the bedrooms was unsafe.
0:51:53 > 0:51:59'He's restored it and made the cornices into one of the many lovely original features of the property.
0:52:01 > 0:52:05'Jonathan's loving restoration continued with the original fireplaces,
0:52:05 > 0:52:08'which add character to each bedroom.'
0:52:08 > 0:52:13I used some products that I just had lying around
0:52:13 > 0:52:18and it said on the box, "Useful for cleaning old tiles," so I thought I'd try it
0:52:18 > 0:52:21and it cleaned the tiles up very nicely.
0:52:21 > 0:52:23And once I'd painted the mantelpiece,
0:52:23 > 0:52:26it came up quite well, so I'm quite pleased.
0:52:28 > 0:52:31'Jonathan's installed some reproduction radiators
0:52:31 > 0:52:34'in keeping with the character of the property.
0:52:34 > 0:52:37'He's also restored the original embossed wallpaper.
0:52:38 > 0:52:43'Although he still needs to carpet throughout and finish the living room,
0:52:43 > 0:52:45'the flat is well on its way to completion.'
0:52:47 > 0:52:52I'm going to have a little holiday now, because I'm knackered.
0:52:52 > 0:52:57But after that, I should think about a month or so and I should have it finished.
0:52:57 > 0:53:00'Jonathan's done most of the renovation work himself,
0:53:00 > 0:53:05'with some help from professionals on jobs like the electrics and plumbing.
0:53:05 > 0:53:09'His budget was £10,000. Did he keep to it?'
0:53:09 > 0:53:14Because I've decided to have carpets down throughout, that's going to add quite a lot,
0:53:14 > 0:53:17so it'll be getting up towards £15,000.
0:53:19 > 0:53:23'But will this labour of love pay off?
0:53:23 > 0:53:26'With a renovation budget of £15,000,
0:53:26 > 0:53:29'plus the purchase price of £76,000,
0:53:29 > 0:53:33'Jonathan's invested a grand total of £91,000 here.
0:53:33 > 0:53:35'Has he added value?
0:53:35 > 0:53:39'We asked two local property experts to give us their opinions.'
0:53:40 > 0:53:43Every home should have something that's quite special about it.
0:53:43 > 0:53:46This flat has got a really nice feel to it
0:53:46 > 0:53:49because of the way the rooms are organised.
0:53:49 > 0:53:52It's huge, there's lots of character,
0:53:52 > 0:53:55you couldn't put it in a more convenient location
0:53:55 > 0:54:00and strangely, somehow, even though kind of a busy road junction,
0:54:00 > 0:54:03you don't know it.
0:54:03 > 0:54:09The highest value, because it really is so nice, is as someone's home.
0:54:09 > 0:54:15And if that's the ultimate buyer, you're probably looking at £100,000 being the end value,
0:54:15 > 0:54:17maybe just a little bit extra
0:54:17 > 0:54:21if we find someone who truly appreciates the originality of the character.
0:54:21 > 0:54:24I would value the flat at £110,000.
0:54:24 > 0:54:30Maybe, in a really good market, £115,000, cos it has got a special feel.
0:54:30 > 0:54:34'How does Jonathan feel about these figures?'
0:54:34 > 0:54:38Really depressed. That's a lot less than what I thought.
0:54:38 > 0:54:44Erm, I don't know if that includes carpets and finishing,
0:54:44 > 0:54:50cos it has still got to be finished, but that's quite a bit less than I'd imagined, so that's bad news.
0:54:52 > 0:54:54'It's not as much as Jonathan was hoping for,
0:54:54 > 0:55:01'but those valuations could give him a pre-tax profit of between £9,000 and £24,000,
0:55:01 > 0:55:03'minus the usual selling fees, of course.
0:55:04 > 0:55:10'But in an area like Mutley, so close to Plymouth University and the city centre,
0:55:10 > 0:55:13'he could always choose to rent it out.'
0:55:15 > 0:55:20As an assured short-hold tenancy rent machine, you could expect to let the flat out
0:55:20 > 0:55:24at about £550 per calendar month.
0:55:24 > 0:55:28If you were looking toward student lets to increase your income,
0:55:28 > 0:55:34you'd be looking at probably, for an academic year, 44, 45 weeks,
0:55:34 > 0:55:40you're probably looking at £90 per week per room, maybe £95.
0:55:41 > 0:55:49'That could mean an annual income of up to £8,500, a very solid yield of around ten percent.'
0:55:49 > 0:55:56So I'll probably rent it, at the moment, and wait for the prices to go back up.
0:55:58 > 0:56:03'I think Jonathan's done pretty well with this, his first investment property.
0:56:03 > 0:56:09'But profit margins weren't the only reason he undertook this project.'
0:56:09 > 0:56:14It's been very satisfying working in this environment where I've been restoring these old features.
0:56:14 > 0:56:19Cos the place was in such a bad condition when I bought it,
0:56:19 > 0:56:27but it just needed a little bit of loving hard work, loving labour,
0:56:27 > 0:56:33to put it right again and to make it into a nice, comfortable, solid home.
0:56:39 > 0:56:43That's it for today's show. Make sure you join us next time
0:56:43 > 0:56:47- for more properties going under the hammer. - See you then.- Goodbye.- Goodbye.
0:56:49 > 0:56:53Subtitles by Red Bee Media Ltd
0:56:53 > 0:56:57E-mail subtitling@bbc.co.uk
0:56:57 > 0:56:57.