0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Now, all sorts of people buy property at auctions these days,
0:00:06 > 0:00:08they attract buyers from all walks of life.
0:00:08 > 0:00:12And that's because there are great bargains to be had under the hammer!
0:00:37 > 0:00:42So, there's a wide range of buyers, and all sorts of properties available at the auction.
0:00:42 > 0:00:44It's a bit of a race to get the best bargains,
0:00:44 > 0:00:46and you have to be in it to win it,
0:00:46 > 0:00:49but let's see what properties are featuring on today's programme.
0:00:51 > 0:00:55I wonder if this bungalow in Oxfordshire has room for expansion.
0:00:56 > 0:00:58Outside is going to give us the answer.
0:00:59 > 0:01:03In London, I visit this two-bedroom flat which is rather dated,
0:01:03 > 0:01:06but appears to have everything you need. Well, almost.
0:01:06 > 0:01:10There is something missing, and that's the bathroom.
0:01:10 > 0:01:14And I'm in Salford, to see what surprises this house has in store.
0:01:16 > 0:01:18So what have we got?
0:01:18 > 0:01:20Mess!
0:01:22 > 0:01:24All these properties have been sold at auction,
0:01:24 > 0:01:28and we'll find out who bought them and what they paid when they went under the hammer.
0:01:28 > 0:01:30Third and last time.
0:01:35 > 0:01:39I'm in the quintessentially English village of Shrivenham in Oxfordshire.
0:01:39 > 0:01:42With it's 18th century churches and thatched cottages,
0:01:42 > 0:01:48this charming rural enclave has retained a pleasant sense of tranquillity,
0:01:48 > 0:01:52despite being conveniently situated near Swindon and Oxford.
0:01:55 > 0:01:59Just ten-minutes walk from the centre of Shrivenham
0:01:59 > 0:02:02is this quiet residential street.
0:02:02 > 0:02:04On one side you've got large family homes,
0:02:04 > 0:02:06and on the other, the property I'm here to see.
0:02:06 > 0:02:09It's a bungalow, and as you know, I like bungalows.
0:02:09 > 0:02:12They've got lots of scope and I think they appeal to a wide market.
0:02:12 > 0:02:14So, this is it.
0:02:14 > 0:02:17At a guide price of £190,000, it's got two bedrooms,
0:02:17 > 0:02:19and judging by the state of the garden,
0:02:19 > 0:02:22it could do with a bit of tender, loving care.
0:02:22 > 0:02:24Let's see what the inside's like.
0:02:25 > 0:02:28It is certainly a quiet location,
0:02:28 > 0:02:32ideal for a young family or perhaps a retired couple.
0:02:36 > 0:02:37So, what's on offer?
0:02:39 > 0:02:42OK, well, nice, wide entrance corridor here,
0:02:42 > 0:02:47we like that, it gives the feeling of space to the centre of the bungalow.
0:02:47 > 0:02:50And then, basically, as is normal with this kind of property,
0:02:50 > 0:02:54you have your front living area there, your first bedroom there.
0:02:54 > 0:02:57A loo and separate bathroom.
0:02:57 > 0:03:00It's up to if you want to knock those two together.
0:03:00 > 0:03:01I like having them separate.
0:03:01 > 0:03:04For a family, it's quite a good thing to have.
0:03:04 > 0:03:07Second bedroom there, and then through to the kitchen.
0:03:07 > 0:03:10Interestingly enough, the rest of the house didn't feel that dated,
0:03:10 > 0:03:15but walk in here and you do feel the house hasn't been touched
0:03:15 > 0:03:16that much since it was built.
0:03:16 > 0:03:21The units could even be original from the, I guess, 1960s or so.
0:03:21 > 0:03:23Not a bad sized space,
0:03:23 > 0:03:26and it gets even better when you come out here,
0:03:26 > 0:03:28because you've got this little area.
0:03:28 > 0:03:31It's currently a workshop, and, through there, a garage,
0:03:31 > 0:03:35but I'm wondering if there's scope for expansion?
0:03:35 > 0:03:37Outside could give us the answer.
0:03:39 > 0:03:42The back garden is where this rather tired
0:03:42 > 0:03:45and dated bungalow blossoms into life.
0:03:45 > 0:03:50# Blossom, smile some sunshine down my way
0:03:52 > 0:03:54# Lately, I've been lonesome... #
0:03:56 > 0:04:02There's space to extend, perhaps even without planning permission,
0:04:02 > 0:04:06if it's completed within what's called "permitted development".
0:04:06 > 0:04:10However, it would still have to meet building regulations.
0:04:11 > 0:04:13All in all, this is lovely property.
0:04:13 > 0:04:15Internally, it needs to be completely refurbished,
0:04:15 > 0:04:20but the rooms are well proportioned, and structurally, it's sound.
0:04:23 > 0:04:27I invited a local estate agent to give us his opinion on this place,
0:04:27 > 0:04:32which had a guide price of £190,000.
0:04:33 > 0:04:35It is great plot,
0:04:35 > 0:04:39it's got a really good-sized garden, the rooms are set out really nicely.
0:04:39 > 0:04:42It does need a little bit of updating,
0:04:42 > 0:04:46but it's not going to take a lot to make it a really good property.
0:04:48 > 0:04:51What about an extension?
0:04:51 > 0:04:53To extend the property, you can either go
0:04:53 > 0:04:56into where the garage is now, or go off the back.
0:04:56 > 0:04:59Going off the back wouldn't diminish the garden size,
0:04:59 > 0:05:01or if you want to keep the garden,
0:05:01 > 0:05:04go to the side and use the utility room and the garage
0:05:04 > 0:05:09and make that into more reception rooms or bedrooms, whatever you feel.
0:05:12 > 0:05:15If the property were renovated, but not extended,
0:05:15 > 0:05:20what sort of income could it generate on the rental market?
0:05:20 > 0:05:23If you were to rent the property out once renovation is completed,
0:05:23 > 0:05:25I think, in this current market,
0:05:25 > 0:05:28you would get probably £650 per calendar month.
0:05:28 > 0:05:30And if it was sold?
0:05:31 > 0:05:35Resale value would be £280,000, up to maybe £300,000,
0:05:35 > 0:05:38depending on what they actually do, and how they finish it.
0:05:38 > 0:05:43And, if extended, what sort of figures could it achieve then?
0:05:44 > 0:05:47I think, if the property had been extended and finished,
0:05:47 > 0:05:51and it was then to go to the rental market as a three-bed,
0:05:51 > 0:05:54in this market you'd get £750 per calendar month.
0:05:54 > 0:05:57A similar property in the road was extended,
0:05:57 > 0:06:00and they put a kitchen-breakfast room on the back,
0:06:00 > 0:06:04added a bedroom with an en suite, and that sold for £360,000.
0:06:07 > 0:06:10It strikes me that whoever bought this has a basic decision to make.
0:06:10 > 0:06:13Do you leave it as it is and just tart it up a little bit,
0:06:13 > 0:06:16or do you go the whole hog and do the extension?
0:06:16 > 0:06:20It's all going to be about what value add doing that extension would bring.
0:06:20 > 0:06:22Let's find out who the person who bought it was
0:06:22 > 0:06:24when it went under the hammer.
0:06:25 > 0:06:26At £190,000, someone.
0:06:28 > 0:06:30Or put me in 180, if you like.
0:06:30 > 0:06:31At £180,000.
0:06:33 > 0:06:35At £180,000, 182.
0:06:35 > 0:06:37At 82, 184, 186,
0:06:37 > 0:06:40188, 190.
0:06:40 > 0:06:42192, 194,
0:06:42 > 0:06:44196, 198,
0:06:44 > 0:06:46200. The bid is here at 202.
0:06:46 > 0:06:48204.
0:06:48 > 0:06:50206. 208.
0:06:50 > 0:06:52210, 212,
0:06:52 > 0:06:5514, 16, 218,
0:06:55 > 0:06:57220, 222.
0:06:58 > 0:07:0024, 26.
0:07:00 > 0:07:02228, sir, if you'd like.
0:07:02 > 0:07:06At £226,000 in the middle, there, for the first time,
0:07:06 > 0:07:10and for the second time, at 226, third and last time.
0:07:10 > 0:07:15The successful bid of £226,000 came from Bill,
0:07:15 > 0:07:18and his son, Nick.
0:07:20 > 0:07:22Bill's a partner in a development company
0:07:22 > 0:07:25which specialises in building and selling new houses.
0:07:25 > 0:07:29But this investment's being made with his 14-year-old son, Nick,
0:07:29 > 0:07:32and 16-year-old daughter, Hannah.
0:07:33 > 0:07:37- Bill, congratulations!- OK.- Tell me why you wanted to buy the bungalow.
0:07:37 > 0:07:39A couple of reasons.
0:07:39 > 0:07:43After a bit of an investment portfolio, this would be a start,
0:07:43 > 0:07:47and the other thing is the children, they are always complaining they
0:07:47 > 0:07:51haven't got any jobs, they are a bit young, they can't get anything.
0:07:51 > 0:07:55This is an ideal opportunity for them to do a bit whilst we're doing
0:07:55 > 0:07:59the renovation, and then as we rent it over the years, there is always
0:07:59 > 0:08:04something that needs doing, they get to see all the figures, all of that.
0:08:04 > 0:08:06How old are the children at the moment?
0:08:06 > 0:08:08Well, 14 and 16.
0:08:08 > 0:08:10So a little tricky to get a job
0:08:10 > 0:08:13down the supermarket or anything, just yet.
0:08:13 > 0:08:15Instead of stacking shelves in supermarkets,
0:08:15 > 0:08:18they're learning to become property entrepreneurs.
0:08:18 > 0:08:21That's right, yeah, and what Nick did,
0:08:21 > 0:08:23he sold his redundant games gear,
0:08:23 > 0:08:26and put that money into a property about 18 months ago.
0:08:26 > 0:08:29Actually did little bits of work,
0:08:29 > 0:08:32painting and gardening and built it up,
0:08:32 > 0:08:34and that's now worth about £1,000.
0:08:34 > 0:08:36- He's now got £1,000? - That's right.
0:08:36 > 0:08:39So, what's he going to do with this £1,000?
0:08:39 > 0:08:41Well, hopefully keep it going,
0:08:41 > 0:08:43so I'm not buying them and he's buying them!
0:08:43 > 0:08:45- He's 14?- Yes. - You must be proud of him.
0:08:45 > 0:08:49Yeah, yeah, it's good. It hasn't got blown on something else.
0:08:49 > 0:08:52Now, my daughter tried a similar thing.
0:08:52 > 0:08:56Unfortunately, she's only up to £60. She spent it!
0:08:58 > 0:09:02- On?- Guess what? All the usuals! - Clothes, shoes!
0:09:06 > 0:09:09Well, I have to agree with young Nick.
0:09:09 > 0:09:13It's better to invest in bricks and mortar than shoes and handbags.
0:09:13 > 0:09:16From his £1,000 pot of cash,
0:09:16 > 0:09:20Nick will invest £200 in this property,
0:09:20 > 0:09:22and the rest in his father's other projects.
0:09:22 > 0:09:25Nick is raring to get started on this renovation.
0:09:25 > 0:09:26So, what will he be doing?
0:09:26 > 0:09:30As soon as you leave, there's a tree to be chopped down.
0:09:30 > 0:09:33Right. Out with the chainsaw, you know!
0:09:33 > 0:09:35He's a bit young for...
0:09:35 > 0:09:37- Well, I don't know! - It's not that big a tree!
0:09:37 > 0:09:40You've already got him being a property baron,
0:09:40 > 0:09:43so why not break out the dangerous industrial machinery?
0:09:43 > 0:09:44Here you go, son!
0:09:44 > 0:09:47Anyway, a bit of that, and a bit of gardening,
0:09:47 > 0:09:51and then, once the builders have moved on a little bit,
0:09:51 > 0:09:55will be all the painting and finishing and cleaning,
0:09:55 > 0:09:57and then out for rental.
0:09:57 > 0:10:00And presumably, this is something you hope
0:10:00 > 0:10:02he will carry on through his life.
0:10:02 > 0:10:03That's right, yeah.
0:10:03 > 0:10:10He seems to be, so far, interested, always come back, you know,
0:10:10 > 0:10:15never refused a day's painting and work and what have you, so far,
0:10:15 > 0:10:18so, hopefully stick with it. You never know!
0:10:21 > 0:10:24Bill's giving his children an education in finance
0:10:24 > 0:10:28and the benefits of hard work, using this renovation as the example.
0:10:28 > 0:10:31So, talk me through exactly what you are going to do with this place.
0:10:31 > 0:10:35At the moment, it's a two-bed, two double bedrooms,
0:10:35 > 0:10:39but I think it's, kind of '60s, it's a bit tired and dated.
0:10:39 > 0:10:42So what we're going to do is extend off the back
0:10:42 > 0:10:45by about three metres, put a diner with a kitchen,
0:10:45 > 0:10:50and then put a master bedroom out the back with an en suite.
0:10:50 > 0:10:52Then pretty much leave the rest of the house as is,
0:10:52 > 0:10:54but new central heating, double glazing,
0:10:54 > 0:10:56obviously a brand new kitchen,
0:10:56 > 0:10:59the existing bathroom will be done as well.
0:10:59 > 0:11:04Just make sure all the insulation, all the usual things are OK,
0:11:04 > 0:11:08electrics are OK. Quite a lot of work, actually.
0:11:08 > 0:11:10So, what's the budget for the work?
0:11:10 > 0:11:13The budget? Well, about 50,000, so quite a lot.
0:11:13 > 0:11:17The extension will be about 30 square metres,
0:11:17 > 0:11:22and then internally another 20, 25, so that's your 50,
0:11:22 > 0:11:25and then there's some fees, obviously, as well.
0:11:25 > 0:11:28- And the timescale?- Timescale?
0:11:28 > 0:11:31Well, the builders move in the next few days,
0:11:31 > 0:11:33and then it will take about six weeks,
0:11:33 > 0:11:39and then, you know, catch the late rental market and off we go.
0:11:39 > 0:11:41- Wow! So, bing, bang, boom! - It is, absolutely.
0:11:41 > 0:11:45Congratulations in all you're doing, and good luck with it!
0:11:45 > 0:11:47- Fantastic.- We'll look forward to seeing how you get on.
0:11:47 > 0:11:49OK, cheers then!
0:11:51 > 0:11:53Well, there you go.
0:11:53 > 0:11:56Bill combining taking on what could be a profitable venture
0:11:56 > 0:12:00with teaching his son Nick some really valuable lessons
0:12:00 > 0:12:03in property development.
0:12:03 > 0:12:07Great stuff. Still, six weeks to get this place sorted out?
0:12:07 > 0:12:10Even with a tiny helper, it's a bit tight.
0:12:10 > 0:12:12See how they get on later in the show.
0:12:15 > 0:12:19I'm in the south west of London, Streatham to be precise.
0:12:23 > 0:12:27It's just south of Brixton, with Tooting as its neighbour.
0:12:27 > 0:12:29I'm here to see a property less than
0:12:29 > 0:12:32a mile from Streatham Common main line train station,
0:12:32 > 0:12:35and just over a mile from the nearest Tube, Tooting.
0:12:35 > 0:12:39It's a first-floor flat you can see in this Victorian mid-terrace.
0:12:39 > 0:12:41Now, it had a guide at auction of £130,000.
0:12:41 > 0:12:44Looks like a really nice, solid building from the outside.
0:12:44 > 0:12:48It's got a bit of character, as well. Let's go inside and check it out.
0:12:50 > 0:12:52I love these Victorian buildings.
0:12:52 > 0:12:54The lovely lintels above the windows,
0:12:54 > 0:12:58the tiled front path and entrance, perfectly gorgeous.
0:12:58 > 0:13:00Let's hope the inside is, too.
0:13:01 > 0:13:04So, in the auction catalogue it's described as having three rooms.
0:13:04 > 0:13:07We've got a really big room here at the back of the property,
0:13:07 > 0:13:09the kitchen is beyond that.
0:13:09 > 0:13:12We've got another two rooms here, and here.
0:13:12 > 0:13:16You can see it hasn't been decorated in a long while,
0:13:16 > 0:13:20so quite a bit of work, cosmetically, to do here,
0:13:20 > 0:13:23but you've got a lovely big square room, with three big windows.
0:13:23 > 0:13:26You know, it's got lots of character, this property.
0:13:26 > 0:13:30It's Victorian, so you've got lots of nice cornicing up there on the ceiling.
0:13:30 > 0:13:33You can see there's no central heating, just an old gas fire,
0:13:33 > 0:13:36but something I can't help but notice,
0:13:36 > 0:13:38a lot of people have gone up into the loft.
0:13:38 > 0:13:43You know, that really is a sure-fire way of adding value to a property,
0:13:43 > 0:13:46but you do need to get the freeholder's permission
0:13:46 > 0:13:50to do so, so I will come back to that in a little while.
0:13:51 > 0:13:55So, as I said, pushing up into the attic
0:13:55 > 0:13:58will not only add welcome space, but could add value, too.
0:14:02 > 0:14:04Right at the back of the property is the kitchen,
0:14:04 > 0:14:06and it's tiny, but look at this!
0:14:06 > 0:14:10Now, it's not a pasta maker, you may be wondering what that is.
0:14:10 > 0:14:12It's an old mangle, where you would have wrung
0:14:12 > 0:14:15your clothes out in the olden days, so clearly,
0:14:15 > 0:14:18this has not been touched for many, many years.
0:14:18 > 0:14:21But, there is something missing, and that's the bathroom.
0:14:21 > 0:14:24So far, I haven't come across the bathroom,
0:14:24 > 0:14:26so let's have a little look in the units...
0:14:26 > 0:14:29Ha, there it is! Can you see that? Look.
0:14:29 > 0:14:34There is the bathroom, ladies and gentlemen! Fantastic!
0:14:34 > 0:14:37So, it's quite obvious to me, this whole flat
0:14:37 > 0:14:39needs to have a bit of a rethink in terms of space,
0:14:39 > 0:14:43because a bathroom is absolutely essential.
0:14:43 > 0:14:47No, don't worry, the toilet isn't in here as well,
0:14:47 > 0:14:50that's got its own room, but that bath will really have to go,
0:14:50 > 0:14:54although I suppose it is handy if you wanted to do the dishes
0:14:54 > 0:14:57and have a wash at the same time!
0:14:57 > 0:15:01# Floating away in the bathtub
0:15:01 > 0:15:03# This may sound strange to you. #
0:15:03 > 0:15:06Now, coming back to that freehold issue,
0:15:06 > 0:15:10the purchaser of this property not only gets the flat,
0:15:10 > 0:15:14but will also own the freehold of the entire building.
0:15:14 > 0:15:16Now, there are pros and cons to this, of course.
0:15:16 > 0:15:21As a freeholder, you're responsible for the upkeep and the maintenance of the building,
0:15:21 > 0:15:23but you are entitled to charge ground rent.
0:15:23 > 0:15:27So, here it's just £50 a year, and that is not very much.
0:15:27 > 0:15:30The big advantage is that you'll also get money every time
0:15:30 > 0:15:33one of the flats need to extend their lease.
0:15:33 > 0:15:38The ground floor flat below only has a term of 75 years left on their lease,
0:15:38 > 0:15:43so those owners, if they want to extend it, you can charge them a good few quid to do so.
0:15:43 > 0:15:49Possibly even 10,000 or more, so not bad for a bit of paperwork.
0:15:49 > 0:15:50Being the freeholder also means
0:15:50 > 0:15:53that you can do any changes to the property you like,
0:15:53 > 0:15:57subject to planning approval, of course, so lots of potential here,
0:15:57 > 0:16:01but what does a local property expert make of this one-bedroom flat?
0:16:01 > 0:16:03We asked one along to take a look.
0:16:11 > 0:16:13It's obviously got lots of potential.
0:16:13 > 0:16:16It's a tired property at the moment,
0:16:16 > 0:16:19but these properties are quite sought after,
0:16:19 > 0:16:22and I think the owners here have got their work cut out.
0:16:22 > 0:16:24But once they grasp the nettle, as it were,
0:16:24 > 0:16:27they should be able to have a really lovely flat.
0:16:27 > 0:16:32I would probably convert the existing kitchen into a full-size bathroom,
0:16:32 > 0:16:35by opening up the space that's currently between the kitchen
0:16:35 > 0:16:37and the loo into a full-size bathroom.
0:16:37 > 0:16:41The kitchen would move into the room that is currently used as a bedroom,
0:16:41 > 0:16:43or as a living room, and that would make
0:16:43 > 0:16:46a decent-sized kitchen that you could eat in.
0:16:46 > 0:16:50If you converted that room into a kitchen-diner-lounge area,
0:16:50 > 0:16:54that would still leave space for two decent-sized bedrooms,
0:16:54 > 0:16:59so what could this flat resell for once the work was done?
0:16:59 > 0:17:02Remember, the auction guide price was £130,000.
0:17:03 > 0:17:06We've just sold a similar one,
0:17:06 > 0:17:10which went for, I think, just under £250,000.
0:17:11 > 0:17:13And if the buyer decided to rent it out,
0:17:13 > 0:17:15how much could they hope to achieve?
0:17:16 > 0:17:20As a two-bedroom flat, you're looking at rentals of somewhere
0:17:20 > 0:17:23between 1,000 and 1,200 per calendar month for this area.
0:17:23 > 0:17:26You know what? I think this is a good little flat.
0:17:26 > 0:17:29It does need a complete cosmetic overhaul,
0:17:29 > 0:17:32and, of course, you've got to think about that layout.
0:17:32 > 0:17:34You do need to fit a bathroom in somewhere,
0:17:34 > 0:17:39but you have got the benefit of the freehold and the possibility to add value by doing that loft.
0:17:39 > 0:17:43Let's see who spotted the potential here when we head to auction.
0:17:43 > 0:17:45So, who wants to give me a start on this? Lot 74.
0:17:48 > 0:17:49150, anywhere?
0:17:50 > 0:17:52150 I've got, back of the room.
0:17:52 > 0:17:55How much? 151? OK, 151.
0:17:55 > 0:17:56152, sir.
0:17:58 > 0:17:59152?
0:18:01 > 0:18:03153. 154.
0:18:03 > 0:18:05155.
0:18:05 > 0:18:08156. 157, sir.
0:18:08 > 0:18:10158. 159.
0:18:10 > 0:18:12160.
0:18:12 > 0:18:15160, do you want to come in?
0:18:15 > 0:18:16160?
0:18:18 > 0:18:20Yeah, 160. 161.
0:18:20 > 0:18:22162.
0:18:24 > 0:18:25162?
0:18:25 > 0:18:29If not, back of the room, been there all along, on my right,
0:18:29 > 0:18:30bids £161,000.
0:18:32 > 0:18:34It's against you. 162, back in.
0:18:34 > 0:18:38163. 164.
0:18:38 > 0:18:39No?
0:18:39 > 0:18:43Back to you, bid's with you, £163,000, it's against you.
0:18:43 > 0:18:46On my right. 163, for the first...
0:18:46 > 0:18:49164, back in. 165.
0:18:49 > 0:18:51166.
0:18:52 > 0:18:56Said that last time! 165, for the first...
0:18:56 > 0:18:57165, for the second...
0:18:57 > 0:19:01165... 166, new place, more competition.
0:19:01 > 0:19:03167, nearly. 168.
0:19:05 > 0:19:08169. 170.
0:19:09 > 0:19:11171. 172.
0:19:14 > 0:19:15172. 173.
0:19:15 > 0:19:16174.
0:19:18 > 0:19:20175.
0:19:20 > 0:19:21176.
0:19:23 > 0:19:24176?
0:19:26 > 0:19:27Yes? No?
0:19:27 > 0:19:29If not, 175, for the first...
0:19:29 > 0:19:32175, for the second...
0:19:32 > 0:19:35175, for the third and final time. Are we all done?
0:19:37 > 0:19:38Sold, 175.
0:19:39 > 0:19:44That final bid of £175,000 was made by Charlie.
0:19:45 > 0:19:49# I'm walking down the highway
0:19:49 > 0:19:52# Seen this cat his name was Charlie. #
0:19:52 > 0:19:55Charlie's a part-time developer,
0:19:55 > 0:19:58with around 13 rental properties in his portfolio, but he's bought
0:19:58 > 0:20:02and sold many others, and runs his own estate agents business.
0:20:02 > 0:20:06With all this experience, surely he's got an eye for a bargain?
0:20:08 > 0:20:11Great to meet you today, thank you so much for coming along.
0:20:11 > 0:20:14- Congratulations. - Yeah, I think, good news.
0:20:14 > 0:20:16Always good news to snap one up at auction.
0:20:16 > 0:20:19So, what's the story behind you wanting to buy this flat?
0:20:19 > 0:20:22It's an area I know well, good housing stock, purpose-built,
0:20:22 > 0:20:26period maisonettes, you have your own front door, private garden.
0:20:26 > 0:20:29They always tend to sell fairly well on the open market.
0:20:29 > 0:20:31It's a banker, basically, around here.
0:20:31 > 0:20:34Charlie, the layout, as it stands, is diabolical.
0:20:34 > 0:20:35It really doesn't work, does it?
0:20:35 > 0:20:39How are you going to change it? What's your vision for this property?
0:20:39 > 0:20:42It's difficult. As it is now, we'll make a two-bed.
0:20:42 > 0:20:45It will be a compact two-bed, but nonetheless, a two-bed.
0:20:45 > 0:20:47One-bed, there's no point at all.
0:20:47 > 0:20:49So we'll get a two-bed,
0:20:49 > 0:20:52there's a few different options of different layouts,
0:20:52 > 0:20:54and then if we did the loft, you'd get a three-bed,
0:20:54 > 0:20:56probably more suitable for a young family.
0:20:56 > 0:20:59Will you go up into the loft space and convert it,
0:20:59 > 0:21:02because lots of the other properties along this road have done that.
0:21:02 > 0:21:06It's worth doing. You look at the area, front to back, of the house,
0:21:06 > 0:21:10it's quite a large area and because we have the freehold to the building,
0:21:10 > 0:21:14we don't have to be paying out to the freeholder to use that space,
0:21:14 > 0:21:16which you would normally have to do.
0:21:16 > 0:21:19Which could be another 13,000, so we save money there, too.
0:21:19 > 0:21:23Charlie's got a team of builders ready to carry out the work,
0:21:23 > 0:21:25and is allowing between two and four months to do it,
0:21:25 > 0:21:27depending on planning permission.
0:21:27 > 0:21:29More crucial than the loft conversion,
0:21:29 > 0:21:33what's he going to do about putting in a bathroom?
0:21:33 > 0:21:36# Splish, splash I was taking a bath
0:21:36 > 0:21:39# Long about a Saturday night. #
0:21:39 > 0:21:42What am I going to do with the bathroom? We'll move the bathroom.
0:21:42 > 0:21:45It won't sell in the kitchen, people don't like it,
0:21:45 > 0:21:48so we'll either steal a bit of a room to put the bathroom,
0:21:48 > 0:21:51that's the only option we have, we've got to put one in.
0:21:51 > 0:21:53You look at this front room, there's enough space.
0:21:53 > 0:21:56You could break this up, have a bathroom here
0:21:56 > 0:22:00or take the chimney breast out of the room towards the back.
0:22:00 > 0:22:03There's space, it's too big at the moment. The rooms need to be smaller.
0:22:03 > 0:22:07Charlie's got choices to make when it comes to the layout,
0:22:07 > 0:22:09but one decision he has made
0:22:09 > 0:22:12is to put the flat back on the resale market as soon as possible.
0:22:12 > 0:22:16His budget is £32,000, which includes converting the loft.
0:22:16 > 0:22:20On top of that, he's going to install central heating,
0:22:20 > 0:22:24and rewire the whole flat, as well as completely redecorating it.
0:22:29 > 0:22:32What sort of profit do you hope to make out of this?
0:22:32 > 0:22:35Ideally, somewhere around £30,000, around that level.
0:22:35 > 0:22:39- And if you do go into the loft? - Probably looking at 50.
0:22:39 > 0:22:42So it's worth it for you to get the figures right and go up into the loft?
0:22:42 > 0:22:46It's just that you're paying interest on the time you're waiting.
0:22:46 > 0:22:48So, is this something you love to do,
0:22:48 > 0:22:51or you're doing it because you're earning lots of money at the moment?
0:22:51 > 0:22:54I love it, hopefully it gives me an early retirement,
0:22:54 > 0:22:56then you can go and sit on a boat somewhere!
0:22:56 > 0:22:59That's the motivation, not to have to go to work every day.
0:22:59 > 0:23:04It's flexible, but you've got to be expected to be called at 12 o'clock at night,
0:23:04 > 0:23:08three in the morning because something's smashed, or something's on fire,
0:23:08 > 0:23:10or someone's shouting at someone, you know,
0:23:10 > 0:23:13that's the risk, it's not 9-to-5.
0:23:13 > 0:23:14It's been great meeting you.
0:23:14 > 0:23:17Good luck, I don't think you'll need it, but good luck.
0:23:17 > 0:23:19- No problem.- Thank you.- Cheers.
0:23:20 > 0:23:23I think Charlie has done all the right things here.
0:23:23 > 0:23:26He's bought in an area that he's familiar with,
0:23:26 > 0:23:29and he intends to add value by extending into the loft.
0:23:29 > 0:23:30But then he is an estate agent,
0:23:30 > 0:23:34and he should know what he's doing when it comes to property!
0:23:34 > 0:23:36So, will he get planning permission,
0:23:36 > 0:23:39and will he move that bath out of the kitchen?
0:23:39 > 0:23:40Well, let's hope so.
0:23:40 > 0:23:43You can find out how he gets on later on in the programme.
0:23:44 > 0:23:48Coming up, I try to look on the positive side at this house in Salford.
0:23:48 > 0:23:52At least the bathroom is a good size,
0:23:52 > 0:23:54but you can't have everything, can you?
0:23:54 > 0:23:58In London, Charlie may be passionate about property,
0:23:58 > 0:24:02but there's no place for romance in this two-bedroom flat.
0:24:02 > 0:24:04I think the best advice is
0:24:04 > 0:24:06don't fall in love with a property. It's a business.
0:24:06 > 0:24:11But first, let's find out what junior property developer Nick has been up to.
0:24:11 > 0:24:14We spent about a day getting all the wallpaper off.
0:24:21 > 0:24:24Let's return to Shrivenham in Oxfordshire,
0:24:24 > 0:24:27where I visited this two-bed bungalow.
0:24:27 > 0:24:31Especially in the kitchen, with its retro '60's style,
0:24:31 > 0:24:34the dated decoration was a blast from the past,
0:24:34 > 0:24:36but the bungalow's future looked bright.
0:24:36 > 0:24:40Experienced property developer Bill bought it for £226,000.
0:24:42 > 0:24:45He planned to build an extension,
0:24:45 > 0:24:47and bring this retro pad bang up-to-date.
0:24:50 > 0:24:53I think it's kind of '60s, it's a bit tired and dated,
0:24:53 > 0:24:56so we're going to extend off the back by about three metres,
0:24:56 > 0:25:00and then new central heating, double glazing, brand-new kitchen.
0:25:00 > 0:25:03- Wow! So, bing, bang, boom. - It is, absolutely.
0:25:04 > 0:25:07Bing, bang, boom, it may be,
0:25:07 > 0:25:10but it certainly wouldn't be bish, bash, bosh.
0:25:10 > 0:25:13Bill was to be helped by his 14-year-old son, Nick,
0:25:13 > 0:25:17who would be investing £200 of his own cash in this renovation.
0:25:20 > 0:25:22So, two months later, we're back.
0:25:24 > 0:25:27# He's a chip off the old block. #
0:25:27 > 0:25:32Let's see how this father and son developing duo got on.
0:25:32 > 0:25:35# He's a chip off the old block. #
0:25:39 > 0:25:44Work's ongoing, but it's plain to see this has been no rush job.
0:25:44 > 0:25:48The walls are newly plastered, and a modern fireplace has been fitted.
0:25:49 > 0:25:51There's also a new central heating system
0:25:51 > 0:25:54and replacement windows throughout.
0:25:54 > 0:25:56It certainly seems the boys have been busy.
0:25:58 > 0:26:01Obviously, we are about 95 per cent finished at this point.
0:26:01 > 0:26:04We've refurbed the existing building,
0:26:04 > 0:26:07rewired, central heating.
0:26:07 > 0:26:11No surface unchanged, at the end of the day.
0:26:12 > 0:26:16The kitchen has been transformed into a lovely dining area
0:26:16 > 0:26:19by the addition of an extension, with French doors
0:26:19 > 0:26:22leading out onto the still-ample back garden.
0:26:24 > 0:26:26The quirky coloured units have been replaced,
0:26:26 > 0:26:30and this kitchen now feels like it could be the heart of a family home.
0:26:37 > 0:26:41The toilet has been moved into the bathroom to allow access
0:26:41 > 0:26:45to the other side of the extension, the new third bedroom.
0:26:46 > 0:26:48Well, this used to be the loo,
0:26:48 > 0:26:51but now we've made it into a corridor,
0:26:51 > 0:26:53and beyond we have the master bedroom.
0:26:53 > 0:26:59And of course, patio doors, nice little view of the garden.
0:27:00 > 0:27:04The extension was built within permitted development rules.
0:27:04 > 0:27:07That meant, although building regulations need to be complied with,
0:27:07 > 0:27:10Bill didn't get caught up in the long, drawn-out process
0:27:10 > 0:27:13of applying for planning permission.
0:27:14 > 0:27:17The extension is all done within permitted rights,
0:27:17 > 0:27:21so it's been very straightforward, and that's why we did it.
0:27:21 > 0:27:24We wouldn't have done it had we waited for planning.
0:27:24 > 0:27:27That's a two-month process, extra fees,
0:27:27 > 0:27:30and with the state of the housing market,
0:27:30 > 0:27:35that extra time could cost in more ways than just the price itself,
0:27:35 > 0:27:36the market could fall.
0:27:36 > 0:27:38In the original second bedroom,
0:27:38 > 0:27:42the window has been moved from the rear wall,
0:27:42 > 0:27:45which now adjoins the wall of the extension on the side.
0:27:45 > 0:27:48What was Nick's role during the renovations?
0:27:50 > 0:27:54Well, in this hallway was probably where I did the most work.
0:27:54 > 0:27:57I came here with a friend, and we had this steamer,
0:27:57 > 0:28:01and we spent about a day getting all the wallpaper off.
0:28:01 > 0:28:03I also did some work in the bathrooms,
0:28:03 > 0:28:06where it was a bit harder because it's all waterproof,
0:28:06 > 0:28:08so the steam couldn't get through it,
0:28:08 > 0:28:11you had to score it to make the steam go through it,
0:28:11 > 0:28:12so that's a good tip.
0:28:12 > 0:28:16# He's a chip off the old block. #
0:28:16 > 0:28:20Nick's dad, Bill's original schedule was six weeks,
0:28:20 > 0:28:22but he also had other renovations on,
0:28:22 > 0:28:25which led to delays in completing the bungalow.
0:28:25 > 0:28:30The schedule has drifted on about a couple of weeks,
0:28:30 > 0:28:34mainly because I robbed the builders to do work elsewhere.
0:28:34 > 0:28:38There is a few bits left to do, a bit of second fix carpentry,
0:28:38 > 0:28:44bit of wiring, painting and, of course, the carpets.
0:28:44 > 0:28:47Bill originally purchased this bungalow as a rental investment,
0:28:47 > 0:28:50and planned to spend £50,000 on the renovation.
0:28:50 > 0:28:53He changed his plan after discovering that a similar property
0:28:53 > 0:28:59on the street sold for £360,000, so he now plans to sell.
0:28:59 > 0:29:05He upped the spec on the finish, and has now spent £75,000,
0:29:05 > 0:29:08taking his total outlay to around £301,000.
0:29:10 > 0:29:13We invited two local estate agents to see if Bill
0:29:13 > 0:29:16and Nick's bungalow could match that sell-on price.
0:29:16 > 0:29:19What does the estate agent who viewed the property previously
0:29:19 > 0:29:21think of the extension?
0:29:22 > 0:29:24Great. The change has been massive.
0:29:24 > 0:29:26The extension at the back of the house
0:29:26 > 0:29:29adds a new dimension to the size of the property.
0:29:29 > 0:29:32Now he's got to make sure it's decorated really well,
0:29:32 > 0:29:37carpeted, the right colours, the right tiles, the right floors.
0:29:37 > 0:29:39Everything he does now will add money.
0:29:40 > 0:29:44I generally think that the details have to be pretty much perfect.
0:29:44 > 0:29:46Bearing in mind the location of the property,
0:29:46 > 0:29:48it'll be demanding, in my opinion,
0:29:48 > 0:29:52premium price, so therefore, the finish has to be perfect, really.
0:29:52 > 0:29:56Personally, I think the owner here has actually maximised
0:29:56 > 0:29:58the value that the property's potentially worth.
0:29:58 > 0:30:02The estate agents believe the property could achieve
0:30:02 > 0:30:06between £900 and £1,000 per calendar month in the buoyant rental market.
0:30:09 > 0:30:12But Bill wants to sell, and achieve around the £360,000
0:30:12 > 0:30:16that a similar property on the street went for.
0:30:16 > 0:30:19Let's hear some valuations, bearing in mind
0:30:19 > 0:30:22Bill and Nick's total outlay so far is £301,000.
0:30:22 > 0:30:27I would actually value this property in the region of £360,000.
0:30:27 > 0:30:30I'd put this on the market currently for £385,000.
0:30:30 > 0:30:36Oh, that's pretty good, because I think I was banking on 350.
0:30:36 > 0:30:40So, yeah, bit more than that, ideal.
0:30:43 > 0:30:47So, young Nick should make a profit on his £200 investment.
0:30:47 > 0:30:50What's he going to do with his share?
0:30:51 > 0:30:56I'll keep reinvesting it, and when I've got about 3,000, 4,000,
0:30:56 > 0:31:00I'm going to put the money into a garage, and then rent it out,
0:31:00 > 0:31:02so I get ten per cent back every year,
0:31:02 > 0:31:04and then go on like that.
0:31:07 > 0:31:10Well, I'm sure we'll be featuring this young man
0:31:10 > 0:31:13on future programmes, handling his very own project.
0:31:19 > 0:31:23I'm in a suburb of Salford called Little Hulton,
0:31:23 > 0:31:25and this is the property I'm here to see.
0:31:25 > 0:31:28It had a guide price of £32,000.
0:31:29 > 0:31:33It's a two-bed terrace. It looks kind of run down from the outside,
0:31:33 > 0:31:35but the area has got a lot going for it.
0:31:35 > 0:31:38It's on one of the main arteries into the city centre,
0:31:38 > 0:31:42good local primary schools, so in terms of rental, big tick.
0:31:44 > 0:31:45So, what have we got?
0:31:47 > 0:31:49A mess!
0:31:49 > 0:31:51Actually, it looks like somebody has started
0:31:51 > 0:31:55some kind of restoration programme, they just didn't finish it!
0:31:55 > 0:31:57So, let's try and ignore what it looks like,
0:31:57 > 0:31:59and see what the structure of the building is.
0:31:59 > 0:32:01Nice that there's a porch,
0:32:01 > 0:32:04so you're not straight off the pavement into the front room.
0:32:04 > 0:32:07Open fire, good news, and I like the position of the staircase.
0:32:07 > 0:32:11But already, I'm thinking quite a lot of work to do on this one.
0:32:12 > 0:32:14As for the kitchen...
0:32:14 > 0:32:17I say kitchen, but there are no units.
0:32:17 > 0:32:20But you'd probably have had to rip them out
0:32:20 > 0:32:24and throw them away anyway, so this has saved you the bother.
0:32:24 > 0:32:27There's always a positive, and you know me,
0:32:27 > 0:32:29I always like to look on the bright side!
0:32:31 > 0:32:34# Cos I'm Mr Brightside. #
0:32:36 > 0:32:38Let's inspect the upstairs.
0:32:45 > 0:32:47What on earth is going on there?
0:32:48 > 0:32:53You've got this landing, which is basically a corridor down this way,
0:32:53 > 0:32:56and then at the end, this complete waste of space!
0:32:59 > 0:33:04Well, it's quirky. I've got no idea at all what that's about.
0:33:04 > 0:33:06Not to worry. Very odd landing.
0:33:06 > 0:33:08At least the bathroom,
0:33:08 > 0:33:12stripped of absolutely everything though it may be, is a good size.
0:33:12 > 0:33:15You can't have everything, can you?
0:33:15 > 0:33:17# I want it all
0:33:17 > 0:33:20# I want it all
0:33:20 > 0:33:22# I want it all
0:33:22 > 0:33:25# And I want it now. #
0:33:25 > 0:33:30The bathroom might not be so sweet, given that it has no suite,
0:33:30 > 0:33:35but, staying in positive mode, let's call it a blank canvas.
0:33:35 > 0:33:40The two bedrooms are both a fair size and, despite the graffiti,
0:33:40 > 0:33:44the plasterwork is in a better state than downstairs,
0:33:44 > 0:33:48and there's a little bonus, as the UPVC double glazed windows
0:33:48 > 0:33:52are also in reasonable condition, despite being covered in paint.
0:33:53 > 0:33:56Well, finally I find the rear of the property.
0:33:58 > 0:34:03No, it's there, really, you just have to look closely!
0:34:04 > 0:34:07All in all, it's not too bad. No, really, it's not.
0:34:07 > 0:34:12If the house was snapped up for around the guide price of £32,000,
0:34:12 > 0:34:15there is potential for profit, so let's hope someone
0:34:15 > 0:34:21with a heart will apply some TLC to this bargain house in a big mess.
0:34:22 > 0:34:24# Give a little love
0:34:24 > 0:34:26# Give a little love
0:34:26 > 0:34:29# Go on and do it
0:34:29 > 0:34:33# Go! You've got to give a little love! #
0:34:34 > 0:34:37Meanwhile, what's the best option?
0:34:37 > 0:34:41Renovate and rent out, or do up and sell on?
0:34:41 > 0:34:45I asked a local estate agent for his opinion.
0:34:45 > 0:34:48If I owned this property, I would make it tenantable,
0:34:48 > 0:34:52in as much as I would fit a new kitchen, new bathroom,
0:34:52 > 0:34:54re-carpet throughout, redecorate,
0:34:54 > 0:34:57and I would definitely put it on the rental market,
0:34:57 > 0:35:01and I wouldn't expect it to be vacant for very long.
0:35:03 > 0:35:07Once renovated, what could the property achieve if rented out?
0:35:07 > 0:35:09The rental market in the area is strong.
0:35:09 > 0:35:15Achievable rent would be between £400 and £450 per calendar month.
0:35:16 > 0:35:17And sell-on value?
0:35:19 > 0:35:23If the property was renovated, it would achieve a sale price
0:35:23 > 0:35:25of around £60,000 - £65,000.
0:35:27 > 0:35:31There's the potential for profit in this property,
0:35:31 > 0:35:34and though it is in a mess, an investor could clean up.
0:35:34 > 0:35:37Let's see who agreed when it went under the hammer.
0:35:40 > 0:35:4225,000.
0:35:42 > 0:35:46It's got to be bought, £25,000. 25 bid, you've seen the value.
0:35:46 > 0:35:4825,000, 26.
0:35:48 > 0:35:4926,000, then. 27.
0:35:51 > 0:35:5427. 28. 29. 30.
0:35:55 > 0:35:5631.
0:35:56 > 0:35:59Yep, 31,000. 31 and a half.
0:35:59 > 0:36:01No, you're shaking your head.
0:36:01 > 0:36:0231,000, it's in the market.
0:36:02 > 0:36:0531,000, the first time.
0:36:05 > 0:36:0731,000, for the second and final time.
0:36:07 > 0:36:10It's gone quiet in here. Third and final time at 31,000.
0:36:11 > 0:36:15Builder Paul made the successful bid of £31,000,
0:36:15 > 0:36:18bidding on behalf of his friend, Ian.
0:36:18 > 0:36:21Until two months ago, Ian was an operations manager
0:36:21 > 0:36:26for a cleaning company, but is now a novice property developer.
0:36:26 > 0:36:30That's just one step towards a big change of lifestyle.
0:36:30 > 0:36:33I met Ian at his new property to find out more.
0:36:34 > 0:36:37- Good to meet you. - Good to meet you too. - Congratulations.
0:36:37 > 0:36:40So, tell me why you wanted to buy this place.
0:36:40 > 0:36:42Um, it was cheap!
0:36:44 > 0:36:46- Now, you weren't at the auction? - No, no.
0:36:46 > 0:36:49My friend Paul was there. He was on the phone to me.
0:36:49 > 0:36:51I actually thought he'd just given up talking to me,
0:36:51 > 0:36:54but he was actually making bids at the time,
0:36:54 > 0:36:58and then, all of a sudden, he said "You've just bought a house!"
0:36:58 > 0:37:01So that was quite a good feeling, actually.
0:37:01 > 0:37:04- And the idea is you bought it to do what with it?- To lease it out.
0:37:04 > 0:37:08We've already got someone, possibly, to move in once work's been done.
0:37:08 > 0:37:11- What, already?- Yep.- Wow! - Yeah, hopefully, touch wood!
0:37:11 > 0:37:14So, tell me a bit more about you.
0:37:14 > 0:37:17Well, it's my first property that I've bought.
0:37:17 > 0:37:21- What, completely? Even one to live in yourself?- Yep, yep.
0:37:21 > 0:37:25- I'm actually moving out to Brazil in a month.- Brazil?- Yeah, Brazil.
0:37:25 > 0:37:28I thought I'd get a few properties before I get out there,
0:37:28 > 0:37:32so I've got a bit of an income while I'm there, and then I'll go and sit on the beach!
0:37:32 > 0:37:34Right. Tell me more about the Brazil idea.
0:37:34 > 0:37:38Me and a few friends have chipped in to buy a backpackers' hostel.
0:37:38 > 0:37:40A friend of mine built it six years ago,
0:37:40 > 0:37:42and there's me and a couple of friends
0:37:42 > 0:37:44moving out there to run it over the summer.
0:37:44 > 0:37:47So we're going to go out there, and see how it goes.
0:37:47 > 0:37:49Oh, my word! Whereabouts?
0:37:49 > 0:37:53A place called Itacare, which is five hours south of Salvador in the state of Bahia.
0:37:53 > 0:37:56Right. Is that a popular backpacker spot?
0:37:56 > 0:37:58Yeah, it's a surf destination.
0:37:58 > 0:38:01It's got 50 kilometres of surf beaches,
0:38:01 > 0:38:05carnival, and a whole lot of beach parties.
0:38:05 > 0:38:07Wow!
0:38:07 > 0:38:09That was the selling point for me, too!
0:38:13 > 0:38:16So, Ian's off to soak up the sun on the beaches of Brazil.
0:38:16 > 0:38:20But before that, he has to get this property ready to let out
0:38:20 > 0:38:23in not quite so sunny Salford.
0:38:23 > 0:38:26He'll rely on builder Paul to do the work for him.
0:38:26 > 0:38:29So what prompted this sudden change?
0:38:30 > 0:38:35Um, unfortunately my father died, and he'd, luckily,
0:38:35 > 0:38:38left us with a little bit of cash to invest in something,
0:38:38 > 0:38:41and we've looked at properties within £30,000 - £50,000,
0:38:41 > 0:38:45and this one came up, and here we are now.
0:38:45 > 0:38:47- Are you from round here? - No, I'm from London.- Right.
0:38:47 > 0:38:51But my friend Paul, who is the builder of this project,
0:38:51 > 0:38:56he lives in Manchester, and he'll be doing all the work on the house.
0:38:56 > 0:38:58And you're going to be controlling it from London?
0:38:58 > 0:39:01Yeah, or Brazil!
0:39:01 > 0:39:05With the internet these days, you could probably rig up a camera
0:39:05 > 0:39:08- to monitor what it looks like! - Exactly.
0:39:09 > 0:39:12So I'll go back to London, Paul's going to take care of it,
0:39:12 > 0:39:15and then hopefully we can have it turned around
0:39:15 > 0:39:19- within three or four weeks from start to finish.- Gosh, quite quick.
0:39:19 > 0:39:22Yeah, well, I'm moving out to Brazil in four weeks,
0:39:22 > 0:39:24so hopefully we can get it done before that,
0:39:24 > 0:39:28so I can actually see the finished product.
0:39:28 > 0:39:29- Wow!- Yeah.
0:39:29 > 0:39:32It's a quick turnaround, you're not the first person to say that!
0:39:32 > 0:39:36But I've got full faith in Paul, he's a good builder,
0:39:36 > 0:39:41and he's got a good team behind him, so hopefully we can get it all done.
0:39:41 > 0:39:46You can always bribe him that if he does a good job, he can come out and stay at your hostel!
0:39:46 > 0:39:49- Half-price rent!- Oh, yeah, half-price, sorry, not free!
0:39:51 > 0:39:55There's no time to waste if Ian's going to check out the finished state of his new investment
0:39:55 > 0:39:57before leaving for Brazil.
0:40:04 > 0:40:06Tell me what you're going to do to sort the place out.
0:40:06 > 0:40:10Well, as you can probably see, it's been pretty much stripped out already,
0:40:10 > 0:40:13there's obviously no kitchen in here, there's no bathroom,
0:40:13 > 0:40:17a lot of the plaster's been taken down.
0:40:17 > 0:40:21So, we're going to get some new windows where the cracked windows are,
0:40:21 > 0:40:25new kitchen, new bathroom, plaster, decorate.
0:40:25 > 0:40:30Wood or laminate flooring throughout the ground level, then carpet upstairs,
0:40:30 > 0:40:33and that's hopefully as simple as it's going to be.
0:40:33 > 0:40:36So, what's the budget for the work?
0:40:36 > 0:40:41We are looking at around £10,000,
0:40:41 > 0:40:44give or take.
0:40:44 > 0:40:49Hopefully less, but we've got a budget of 10,000 for now.
0:40:49 > 0:40:51And it's going to need central heating, isn't it?
0:40:51 > 0:40:53It's going to need central heating, yeah,
0:40:53 > 0:40:57so that's going to be one of the bigger expenses,
0:40:57 > 0:41:03and the electrical work is going to need a fair overhaul, so they're our two biggest expenses, really.
0:41:03 > 0:41:07The kitchen and bathroom, there's a lot of deals with them in the UK
0:41:07 > 0:41:10at the moment, so we're going to get some pretty good deals with that,
0:41:10 > 0:41:14and again, with carpet, painting, pretty cheap,
0:41:14 > 0:41:18so the biggest expense is the central heating and electrical.
0:41:18 > 0:41:22Well, listen, congratulations, it's a great story, and good luck in Brazil.
0:41:22 > 0:41:26We'll see you before you leave and see how you got on.
0:41:26 > 0:41:29- Maybe we'll see you in Brazil sometime, too!- Yeah, definitely. Come visit!
0:41:32 > 0:41:38So, the clock is ticking for Ian. The beaches of Brazil are beckoning.
0:41:38 > 0:41:40Before he leaves, though, he's got a lot of work to do.
0:41:40 > 0:41:43Find out how he gets on later in the show.
0:41:46 > 0:41:49It's been a while now since we last saw those properties.
0:41:49 > 0:41:52Has any work been done, or do they look exactly the same?
0:41:52 > 0:41:54Let's find out.
0:41:57 > 0:41:59Now we're back in London,
0:41:59 > 0:42:05where this mid-terrace two-bedroom flat sold for £175,000 at auction.
0:42:05 > 0:42:08Charlie bought it to add to the many in his property portfolio.
0:42:08 > 0:42:13He was certainly enjoying his busy career as an estate agent and developer.
0:42:13 > 0:42:16Hopefully it gives you an early retirement,
0:42:16 > 0:42:18and you can go and sit on a boat somewhere!
0:42:18 > 0:42:21That's the motivation, not to have to go to work every day.
0:42:21 > 0:42:27# But this here's a full-time job. #
0:42:27 > 0:42:31Four months on, we've caught up with Charlie back at the property.
0:42:31 > 0:42:35He may not quite have retired yet, but he's certainly been busy.
0:42:37 > 0:42:41The property, before, was a little bit disorganised.
0:42:41 > 0:42:45We had a kitchen and a bathroom together, very unorthodox,
0:42:45 > 0:42:50and then, strangely enough, a massive bedroom across the front of the property,
0:42:50 > 0:42:57and then a very small reception, so it was not a good layout for the 21st century.
0:42:57 > 0:43:02It definitely wasn't, but with the second bedroom to play with and some space where the tiny toilet was,
0:43:02 > 0:43:07next to the kitchen, this flat was more than ready for its first bathroom,
0:43:07 > 0:43:10and indeed, to be dragged into the 21st century.
0:43:10 > 0:43:14# 21st Century kid. #
0:43:16 > 0:43:19Cleverly, Charlie's knocked the toilet through into the kitchen
0:43:19 > 0:43:22and created a spacious, modern bathroom,
0:43:22 > 0:43:26so finally, the bath has a much more appropriate setting.
0:43:29 > 0:43:32The former reception room has been blocked off at one end,
0:43:32 > 0:43:34and is now a bedroom.
0:43:38 > 0:43:43The second bedroom has been carpeted and decorated in light and neutral colours,
0:43:43 > 0:43:45but where on earth is the kitchen?
0:43:45 > 0:43:48Well, what was the master bedroom
0:43:48 > 0:43:51is now a fabulous kitchen-dining-lounge area.
0:43:51 > 0:43:55What a transformation! Charlie's turned this house back to front.
0:43:55 > 0:44:00We have condensed this room. It was a bedroom, and now we've put everything together.
0:44:00 > 0:44:03We've got a kitchen and a living room.
0:44:03 > 0:44:05I think, if you're clever with the furniture,
0:44:05 > 0:44:10it makes a really good, modern living-kitchen-entertaining area.
0:44:10 > 0:44:12I think we've got ample workspace,
0:44:12 > 0:44:16we've got the period fireplace that we've taken from the other bedroom,
0:44:16 > 0:44:20and the sun beams through from the front, so a happy place to be.
0:44:21 > 0:44:24Somewhere else that's a happy place to be is
0:44:24 > 0:44:26soaking in the tub in the new bathroom at the back.
0:44:28 > 0:44:30It was essential to put the bathroom here.
0:44:30 > 0:44:33We were toying around with various layouts.
0:44:33 > 0:44:38This was the best option, unless we went into the loft, which we haven't done.
0:44:38 > 0:44:41Charlie decided against extending into the loft,
0:44:41 > 0:44:45as the financial returns were not worth the extra expenditure,
0:44:45 > 0:44:49so he reduced his original budget of 32,000 to 13,000.
0:44:50 > 0:44:55So, has he saved a pretty penny, or spent a handsome sum?
0:44:56 > 0:44:59I think, probably, now we've spent just under 20.
0:45:01 > 0:45:04I think, probably, the fact that we've had to dip in and then
0:45:04 > 0:45:09come back again has cost more, and I think the contracts I agreed
0:45:09 > 0:45:14with the builders was more for the labour than originally I planned.
0:45:15 > 0:45:18But I'm pretty happy with how it's worked out.
0:45:18 > 0:45:21His labour costs may have been higher, and there are still some
0:45:21 > 0:45:24finishing touches to do, but Charlie doesn't get emotionally attached
0:45:24 > 0:45:29to his properties, and is happy to save money on fixtures and fittings.
0:45:29 > 0:45:35It's very easy, on finishings, to go and buy a more expensive kitchen that'll cost you £1500 more,
0:45:35 > 0:45:39you spend another £500 on tiles, it just stacks up,
0:45:39 > 0:45:43so I think the best advice is never fall in love with a property.
0:45:43 > 0:45:47It's a business, it's not somewhere you're going to lie down and chill out on.
0:45:47 > 0:45:50# And I'll be taking care of business
0:45:50 > 0:45:51# Every day
0:45:51 > 0:45:53# Taking care of business
0:45:53 > 0:45:55# Every way
0:45:55 > 0:45:57# I've been taking care of business
0:45:57 > 0:45:58# It's all mine
0:45:58 > 0:46:00# Taking care of business
0:46:00 > 0:46:02# And working overtime
0:46:02 > 0:46:04# Work out! #
0:46:04 > 0:46:09So, there may not be much passion in this place, but is there profit?
0:46:09 > 0:46:14We asked along two local property experts, to give us their thoughts.
0:46:17 > 0:46:22My first impressions of the property when you walk in is that it's very light and airy,
0:46:22 > 0:46:26and overall, seems like it's going to be nicely finished.
0:46:26 > 0:46:28My first impression is that it's really changed.
0:46:28 > 0:46:31The layout is, obviously, quite radically different
0:46:31 > 0:46:32to how it was before,
0:46:32 > 0:46:37and although it's a couple of days away from being ready, it's looking really good.
0:46:37 > 0:46:40The layout suits the nature of the property.
0:46:40 > 0:46:44Having this as a two-bedroom first floor garden flat very much
0:46:44 > 0:46:47suits the needs of those that are buying in this area,
0:46:47 > 0:46:48so I think it works very well.
0:46:50 > 0:46:54I think what's interesting is that it's certainly above average
0:46:54 > 0:46:57for the local vicinity.
0:46:57 > 0:47:00Would I change the finish as it currently stands?
0:47:00 > 0:47:03No, I think it's very suitable for this type of property.
0:47:05 > 0:47:07Once the refurbishment's complete,
0:47:07 > 0:47:10what could the flat earn on the rental market?
0:47:14 > 0:47:18This flat would rent for approximately £1,200 per calendar month.
0:47:18 > 0:47:23The rental value for this property, you'd be looking at £1,150 per calendar month.
0:47:23 > 0:47:26On a rental side of things, we actually do more rentals,
0:47:26 > 0:47:30So I'd actually say we could get probably 1,200, 1,250.
0:47:30 > 0:47:33I think that's a realistic rental value.
0:47:33 > 0:47:36They are two doubles. I think, with furniture,
0:47:36 > 0:47:39people will be able to appreciate that they are good-sized doubles.
0:47:41 > 0:47:44Charlie paid £175,000 at auction,
0:47:44 > 0:47:47and has spent just under £20,000 on the work,
0:47:47 > 0:47:51so with his total outlay of £195,000,
0:47:51 > 0:47:54how much could he make if he resold it?
0:47:56 > 0:48:03I would look to selling this property at £245,000.
0:48:03 > 0:48:07This flat would sell for in the region of £250,000.
0:48:07 > 0:48:10My goodness! Unbelievable!
0:48:10 > 0:48:13I think, in my opinion, that's toppy.
0:48:14 > 0:48:17My thinking was 210 to 215.
0:48:18 > 0:48:23That's a long way, a long way further than... Yeah, that's a lot!
0:48:23 > 0:48:24Yes, that's good.
0:48:27 > 0:48:31No wonder he's smiling, because with those valuations
0:48:31 > 0:48:35he could be looking at a £50,000-£55,000 pre-tax profit!
0:48:35 > 0:48:38Has Charlie enjoyed this renovation?
0:48:41 > 0:48:44This property, I've really enjoyed the way it's worked out.
0:48:44 > 0:48:48We spent a lot of time working out the configurations, how we'd do it.
0:48:48 > 0:48:51I think the conclusion is fabulous.
0:48:51 > 0:48:55We really have ended up with a really good two-bedroom flat.
0:48:55 > 0:49:00Internal staircase to a garden, yep, really happy.
0:49:08 > 0:49:11Let's return to the Salford suburb of Little Hulton,
0:49:11 > 0:49:15and this two-bed terrace, which was in a big mess.
0:49:20 > 0:49:25The property was purchased for £31,000 as a rental investment by Ian.
0:49:25 > 0:49:30He'd given up his 9-to-5 office job to begin a career as a developer,
0:49:30 > 0:49:35and as I found out, that wasn't the only life-changing decision Ian had made.
0:49:38 > 0:49:41- I'm actually moving out to Brazil in a month.- Brazil?- Yeah, Brazil.
0:49:41 > 0:49:44Me and a few friends have chipped in to buy a backpackers' hostel.
0:49:44 > 0:49:47I thought I'd get couple of properties before I get out there,
0:49:47 > 0:49:49just so that I've got an income while I'm there,
0:49:49 > 0:49:52- and then I'm going to go and sit on the beach!- Wow!
0:49:54 > 0:49:58With his plane to paradise only a month away, Ian was keen to
0:49:58 > 0:50:03get flying on the renovations, so only three weeks later, we're back.
0:50:07 > 0:50:10Well, not much change outside.
0:50:10 > 0:50:12There are a couple of new windows,
0:50:12 > 0:50:15but the exterior paintwork could do with being refreshed.
0:50:15 > 0:50:16Let's see inside.
0:50:20 > 0:50:23The living room is neat and tidy, the plaster
0:50:23 > 0:50:27and woodwork have been repaired, and a new carpet fitted.
0:50:33 > 0:50:37The once derelict and decrepit room next door
0:50:37 > 0:50:40is now a spick and span new kitchen.
0:50:40 > 0:50:42There is still some work to be completed,
0:50:42 > 0:50:46but it's impressive going for just three weeks.
0:50:47 > 0:50:49The kitchen's been a complete transformation.
0:50:49 > 0:50:54Before, there was nothing in here, now it's got units, shelves,
0:50:54 > 0:50:58cupboards, tiles, an extractor fan will be going up.
0:50:58 > 0:51:00We've got the sink in, we've got some new windows.
0:51:00 > 0:51:03It's my favourite room, it's a spacious kitchen.
0:51:03 > 0:51:07I can imagine a nice table here, having friends over, cooking,
0:51:07 > 0:51:09drinking, and just a nice, social room.
0:51:09 > 0:51:11Ian's based in London,
0:51:11 > 0:51:15and has relied on his builder friend Paul, who lives in Manchester, to do
0:51:15 > 0:51:20the work for him, while Ian prepares for his Brazilian adventure!
0:51:22 > 0:51:25Paul was the builder for me.
0:51:25 > 0:51:29We've been friends for about 13 years, he's been in charge while I've been back in London.
0:51:29 > 0:51:32He's had a lot on his plate, obviously, we've had a very
0:51:32 > 0:51:38short deadline on this property, but he's only days away, only days!
0:51:41 > 0:51:46I'm moving out to Brazil very soon, so he's going to be the man in the area who can deal with any problems
0:51:46 > 0:51:48that the property's going to have.
0:51:48 > 0:51:50He's fully responsible for the refurb,
0:51:50 > 0:51:53he was even responsible for the colour of paint, colour of carpet,
0:51:53 > 0:51:55the kitchen, the bathroom.
0:51:55 > 0:51:58I didn't make any decisions on that, it's all in his hands.
0:51:58 > 0:52:00Paul sounds like the perfect pal.
0:52:00 > 0:52:04Not only has he carried out all the renovations,
0:52:04 > 0:52:06he'll also take care of the property when Ian's in Brazil.
0:52:06 > 0:52:10You can't complain about that. Or can you?
0:52:10 > 0:52:13He just asks for money from me too much!
0:52:15 > 0:52:19The cracking pace of Paul's work continues upstairs in the bathroom,
0:52:19 > 0:52:21where a new suite's been fitted.
0:52:24 > 0:52:27Ian's turned his back on his 9-to-5 office job,
0:52:27 > 0:52:30and is striding forward in his new career as a developer.
0:52:30 > 0:52:35In fact, he's already added to his property portfolio.
0:52:35 > 0:52:38Since the work's been going on, we've put an offer in on the property next door
0:52:38 > 0:52:43which has been accepted, and hopefully that will be completed in the next couple of weeks,
0:52:43 > 0:52:45so we can start work as soon as possible next door.
0:52:45 > 0:52:47He's certainly a quick mover,
0:52:47 > 0:52:51and has already found a tenant for this house.
0:52:52 > 0:52:57As soon as the sign went up, the lady was knocking on the door, offering to move in straight away,
0:52:57 > 0:53:00so we've been very, very lucky in that sense, and hopefully
0:53:00 > 0:53:03it will be as easy next door, as well.
0:53:04 > 0:53:07The bedrooms have undergone cosmetic refurbishment,
0:53:07 > 0:53:09and now look bright and fresh.
0:53:11 > 0:53:14Ian's financed his property investments
0:53:14 > 0:53:17and his move to Brazil with money he inherited
0:53:17 > 0:53:19after his father passed away.
0:53:19 > 0:53:25This sad experience spurred him on to change his life and live it to the full.
0:53:25 > 0:53:27I'm hoping my dad's going to be proud.
0:53:27 > 0:53:31He's probably watching down now, wondering why it's not finished,
0:53:31 > 0:53:33and why I'm moving out to Brazil for six months!
0:53:33 > 0:53:38However, I think he would be proud, so that makes it all a lot better.
0:53:38 > 0:53:41Ian will meet his four-week schedule,
0:53:41 > 0:53:45but what about his £10,000 budget, bearing in mind the new bathroom
0:53:45 > 0:53:50and kitchen, plus newly installed boiler and central heating system?
0:53:50 > 0:53:53The initial budget was £10,000.
0:53:53 > 0:53:59We've actually come in under, at 7,300-ish, give or take.
0:53:59 > 0:54:04However, we did incur a few extra costs from the auction house that was unexpected.
0:54:04 > 0:54:07We had to pay for the solicitors' fees from their side,
0:54:07 > 0:54:11from the seller's side, which was a little bit unexpected.
0:54:11 > 0:54:17However, that's actually come into the £10,000 budget, so we're actually spot on.
0:54:17 > 0:54:20On schedule and on budget.
0:54:20 > 0:54:25Well done to Paul and Ian, whose total spend will be £41,000.
0:54:28 > 0:54:31We asked two local estate agents
0:54:31 > 0:54:33for their opinions on the finished result.
0:54:33 > 0:54:39My first impressions of the property is that, on entry, the living room's spacious, bright and airy.
0:54:39 > 0:54:42The finish is quite a good standard.
0:54:42 > 0:54:46If I was to change anything, I think it would probably be
0:54:46 > 0:54:49a more neutral decor, more neutral colours,
0:54:49 > 0:54:52and probably a brighter carpet!
0:54:52 > 0:54:55The standard of finish looks to be quite good,
0:54:55 > 0:54:59I think, in keeping with the kind of property it is.
0:54:59 > 0:55:01You could spend a lot more money here,
0:55:01 > 0:55:04but remember, it is a two-bedroom terraced property.
0:55:06 > 0:55:09Bearing in mind Ian's total outlay of £41,000,
0:55:09 > 0:55:12how much could this property make, if sold?
0:55:14 > 0:55:19If I was to put this property on the market, it would be a value of £65,000.
0:55:19 > 0:55:23Once the refurbishment's been completed,
0:55:23 > 0:55:26I would put this property on the market at around about £65,000.
0:55:26 > 0:55:30Remember, Ian has already got a tenant lined up to rent this
0:55:30 > 0:55:34property, so how much do the estate agents believe it should rent for?
0:55:36 > 0:55:39If I was to rent the property, I would place it on the market
0:55:39 > 0:55:43for between £425-£450 per calendar month.
0:55:43 > 0:55:47This property, once completed, would rent, I believe, quite easily,
0:55:47 > 0:55:51for about £450 per calendar month, maybe a little more.
0:55:51 > 0:55:55Ian's tenant will be paying a lower figure of £400 per calendar month,
0:55:55 > 0:56:00which will still give him a very healthy yield indeed,
0:56:00 > 0:56:01of over 11 percent.
0:56:01 > 0:56:06But Ian has other matters on his mind, like Brazilian beaches and tropical cocktails!
0:56:06 > 0:56:10# Today I'm moving on
0:56:10 > 0:56:13# Tomorrow I'll be gone. #
0:56:13 > 0:56:19It's seven days today that me and my friends are heading out to Brazil, and I can't wait!
0:56:19 > 0:56:22# To the sun
0:56:22 > 0:56:26# Into the sun. #
0:56:26 > 0:56:28What's Ian looking forward to the most?
0:56:30 > 0:56:32Drinking cocktails on the beach!
0:56:37 > 0:56:41And a week later, that's just exactly what he was doing!
0:56:45 > 0:56:46Well, that's it for now.
0:56:46 > 0:56:49- Join us next time for more auction ups and downs.- That's right.
0:56:49 > 0:56:52From bungalows to basements to building sites,
0:56:52 > 0:56:54it's all here on Homes Under The Hammer!
0:56:54 > 0:56:56- We'll see you next time. - Goodbye.- Goodbye.
0:57:13 > 0:57:16Subtitles by Red Bee Media Ltd
0:57:16 > 0:57:19E-mail subtitling@bbc.co.uk