0:00:02 > 0:00:04Hello. Now, like you, we're interested in property.
0:00:04 > 0:00:09That means every aspect of it. We're always on the lookout for a bargain.
0:00:09 > 0:00:13And one way you could get one is to go to your local auction.
0:00:38 > 0:00:44There are property auctions held all over the country throughout the year, so you're spoilt for choice.
0:00:44 > 0:00:49Let's take a look at the properties that made our buyers want to part with their cash on today's show.
0:00:49 > 0:00:56'I'm in the Rhondda Valley, where problems begin as soon as you get through the front door.'
0:00:56 > 0:01:00Not a particularly good start.
0:01:00 > 0:01:05'I visit a gigantic empty shop in Kent which is very promising.'
0:01:05 > 0:01:10The numbers look good, but you may need to look harder to actually see that cash.
0:01:12 > 0:01:18'And is it love at first sight when I visit this bungalow on the outskirts of Derby?'
0:01:18 > 0:01:20I'm liking what I'm seeing!
0:01:20 > 0:01:25'All these properties have been sold at auction and we find out who bought them
0:01:25 > 0:01:30- 'and what they paid for them when they went under the hammer.' - Twice, third time.
0:01:32 > 0:01:36'I'm near Tonypandy in the Rhondda Valley,
0:01:36 > 0:01:39'an area steeped in coal-mining history.
0:01:39 > 0:01:43'Served by the South Wales Commuter Railway, the Rhondda line,
0:01:43 > 0:01:47'it's within easy reach of Cardiff less than an hour away.'
0:01:47 > 0:01:51I'm in the heart of the Valleys in Trealaw,
0:01:51 > 0:01:56here to see an end terrace at a guide price of £26,000-plus.
0:01:56 > 0:02:00This is it. Looks a little bit in need of care and attention from the outside.
0:02:00 > 0:02:02Let's see what the inside has in store.
0:02:04 > 0:02:09'Although this house looks a bit rundown, the rest of the street's in good order.
0:02:09 > 0:02:12'The view to the other side of the valley is a lovely outlook,
0:02:12 > 0:02:16'but inside, it's a different story.'
0:02:16 > 0:02:22Oh, my word. Straight away, into the entrance corridor,
0:02:22 > 0:02:26and, holy mackerel, that is a lot of damp.
0:02:26 > 0:02:31This whole wall... Well, you can see it. It's not damp here,
0:02:31 > 0:02:33damp all the way down there and all the way up there.
0:02:33 > 0:02:36I'm not sure how bad it is. Here's a little tip for you.
0:02:36 > 0:02:42I've got a car key. If you tap the wall, if it's really badly blown, you'll hear it go very hollow.
0:02:42 > 0:02:45- That isn't too bad. - HE TAPS THE WALL
0:02:45 > 0:02:50So the wall is still pretty solid and that plaster, I reckon, isn't a lost hope.
0:02:50 > 0:02:53So you could dry this wall out and not have to replaster.
0:02:53 > 0:02:56The big thing is, what is causing that damp?
0:02:56 > 0:02:59My guess, by the height here, is that it isn't coming up,
0:02:59 > 0:03:05it's coming in, so you need to check out what's on the other side of that wall to find out what's causing it.
0:03:05 > 0:03:11The other thing to consider is, how far has it gone into the floor? Is the floor solid or wooden?
0:03:11 > 0:03:14Could it have possibly rotted some of the beams or the joists?
0:03:14 > 0:03:20Lots to consider. So not a particularly good start.
0:03:20 > 0:03:25Bit of a shame, really, because in terms of layouts, I like that idea of a corridor there.
0:03:25 > 0:03:28It keeps the draughts away from the main living areas.
0:03:28 > 0:03:33And in terms of the living areas, again, good size. You've got a front living room area there
0:03:33 > 0:03:38and a rear one here. Obvious thing to do would be to take out this wall to make a big open-plan area.
0:03:38 > 0:03:44Slightly unusual, through there is where the only loo and bathroom in the property is.
0:03:44 > 0:03:47Then onwards through to the kitchen.
0:03:49 > 0:03:53'And, like the rest of the property, this bathroom's seen better days.
0:03:53 > 0:04:00'It's also the only one in the house, so anyone needing the loo in the night has quite a trek.'
0:04:00 > 0:04:04# Hold on, hold on
0:04:05 > 0:04:09Through to the kitchen, and interesting little feature here,
0:04:09 > 0:04:13you've got this window, which is letting a little bit of light into the living room space.
0:04:13 > 0:04:16Not much, though. It's very dark and dingy in there,
0:04:16 > 0:04:20so maybe you could remove this wall, as well, or put a breakfast bar in there.
0:04:20 > 0:04:23The kitchen is in a right old state.
0:04:23 > 0:04:26All you've got is a sink and a couple of units underneath it.
0:04:26 > 0:04:32So this needs work. And something structural that is worrying me slightly, the ceiling.
0:04:32 > 0:04:36Polystyrene, look at the height of it, I think this is built into an extension.
0:04:36 > 0:04:40Judging by the state of it, not in that good a condition.
0:04:40 > 0:04:44So what are you going to do with this? Hm. I think that needs some thinking about.
0:04:44 > 0:04:48'Off the kitchen, there's also this rather strange door
0:04:48 > 0:04:50'and stairs running down to the rear.
0:04:50 > 0:04:54'Out to the back, you can see the extension, which houses the kitchen,
0:04:54 > 0:04:59'and there's a small garden out there with a big shed and a greenhouse.
0:04:59 > 0:05:05'No clues about the source of the mystery damp. Let's head upstairs and check out the rest.'
0:05:05 > 0:05:08At the moment, upstairs is configured as two bedrooms,
0:05:08 > 0:05:11a big bedroom on the front and a smaller bedroom towards the rear,
0:05:11 > 0:05:15but I reckon there's enough space up here to reconfigure the layout
0:05:15 > 0:05:20to create maybe three bedrooms or at least two bedrooms and an upstairs bathroom.
0:05:20 > 0:05:22That would definitely be worth doing.
0:05:22 > 0:05:25'Remember, this had a guide price of just £26,000.
0:05:25 > 0:05:32'But the mystery damp issue means it's not going to be just a straightforward redecoration job.'
0:05:33 > 0:05:37# It's a mystery
0:05:39 > 0:05:41'To find out more about the area and the property,
0:05:41 > 0:05:44'it's time to consult a local estate agent.'
0:05:44 > 0:05:48What's good about the Rhondda is obviously the scenery, I think.
0:05:48 > 0:05:51The facilities are pretty good within the Rhondda.
0:05:51 > 0:05:54You don't have to go too far for a sports centre, for instance.
0:05:54 > 0:05:59There's a number of them within the Valleys. The property is surprisingly quite large,
0:05:59 > 0:06:03because it could easily be transferred back to a three-bedroom.
0:06:03 > 0:06:06The property itself just needs a full refurbishment,
0:06:06 > 0:06:08a gut job, as we say.
0:06:08 > 0:06:13Every wall has to be hacked off and replastered,
0:06:13 > 0:06:17and once that's done, I think that would cure the damp anyway.
0:06:17 > 0:06:19It's just generally within the walls,
0:06:19 > 0:06:23not within the stone build, it's within the plaster.
0:06:23 > 0:06:28'If he's right, that should be a relatively straightforward fix.
0:06:28 > 0:06:31'I reckon this could be an ideal rental property.
0:06:31 > 0:06:37'What sort of income could the new owner expect if they brought it up to modern standards?'
0:06:37 > 0:06:41Rental on this property, if reverted back to a three-bedroom,
0:06:41 > 0:06:47I would estimate to be in the region of £400 to £425 per calendar month.
0:06:47 > 0:06:52'What about resale? Would it be worth all the effort to sort out the damp and renovate the place?'
0:06:53 > 0:06:58Once renovated, and if it is reverted back to three bedrooms,
0:06:58 > 0:07:04I would estimate this property would be worth in the region of £70,000 to £75,000.
0:07:04 > 0:07:08Well, yes, there's work to be done to sort this place out.
0:07:08 > 0:07:12It needs stripping back and redecorating, for sure,
0:07:12 > 0:07:16and whatever's causing that damp definitely needs to be investigated.
0:07:16 > 0:07:20But the guide price was just £26,000-plus.
0:07:20 > 0:07:26A great one to go for as a rental opportunity or a place to live. Let's see who went for it.
0:07:30 > 0:07:33Near Tonypandy, it's a traditional-type terraced house.
0:07:33 > 0:07:37Can I see 29 for this one? 28, then. 27. Let's get started.
0:07:37 > 0:07:425 is that? Thank you, sir. 25,000 I'm bid. This is no money for it.
0:07:42 > 0:07:45A half, thank you. 25 and a half I'm bid.
0:07:45 > 0:07:49At 25 and a half. 6 is it for you, sir? 26 I'm bid.
0:07:49 > 0:07:53Half, thank you. At 26 and a half. At 26 and a half.
0:07:53 > 0:07:577 can I now? At 26,500. 7 if you like. Quick if you want it.
0:07:57 > 0:08:01At 26,500. 7, thank you.
0:08:01 > 0:08:05At 27 I'm bid. At 27. Half, thank you.
0:08:05 > 0:08:0927 and a half. Make it 8 on my right.
0:08:09 > 0:08:128. 28 I'm bid. Where's yours? I've got him.
0:08:12 > 0:08:17Thank you. 28 and a half. 9 will you now, sir, on my right? Thank you.
0:08:17 > 0:08:19At 29 I'm bid. And another half, sir?
0:08:19 > 0:08:24At 29. Half, thank you. 29 and a half. That's a bad place to stop.
0:08:24 > 0:08:27It's difficult to work out the deposit. Let's make it 30, please.
0:08:27 > 0:08:3130, thank you, sir. At £30,000. At 30.
0:08:31 > 0:08:33And a half for you, sir. Thank you. 30 and a half.
0:08:33 > 0:08:36You're still out. Give him a nudge, madam, he likes it.
0:08:36 > 0:08:3930,500, he's been in all to way.
0:08:39 > 0:08:44Tell him not to lose it. At 30,500. And 1 can I? Yes or no?
0:08:44 > 0:08:47Quick if you want it. I'm not going to dwell. Have you done? 1.
0:08:47 > 0:08:50Thank you. You saw it there. At 31.
0:08:50 > 0:08:56Thank you, 31 and a half. Now wave that catalogue again. At 31 and a half.
0:08:56 > 0:08:59You said no before, but keep trying. At 31 and a half.
0:08:59 > 0:09:05Are you coming again, yes or no? At £31,500, then, in the back of the room.
0:09:05 > 0:09:07# Smooth operator
0:09:07 > 0:09:11'Smooth bidding won the day there and ensured that carpenter Rob
0:09:11 > 0:09:17'and his business partner Mark snapped up the property for £31,500.
0:09:17 > 0:09:21'I met Rob there to hear about their plans.'
0:09:22 > 0:09:27- Rob!- Hello.- Congratulations. - Thank you very much.- Tell me why you wanted to buy the house.
0:09:27 > 0:09:31Basically, to earn a bit of money, to cut it short.
0:09:31 > 0:09:36I've always wanted to get into the property development side of it.
0:09:36 > 0:09:40I've been a carpenter all my life, so it's just a matter of time,
0:09:40 > 0:09:45of getting the money together and actually getting things kicked off and started, really.
0:09:45 > 0:09:48- So, is this number one? - This is number one. Numero uno.
0:09:51 > 0:09:54'Rob and Mark will do most of the work themselves.
0:09:54 > 0:09:58'They plan to get everything done within three months and use their carpentry skills
0:09:58 > 0:10:01'to give the place a professional finish.'
0:10:04 > 0:10:08- What's your business?- Most of it is sanding floors these days.
0:10:08 > 0:10:13We bring up parquet floors, restoration work to flooring, really.
0:10:13 > 0:10:16- Are you going to do that here? - I'll certainly have a look.
0:10:16 > 0:10:20I'd rather do that than carpet, but then again,
0:10:20 > 0:10:25you're always fighting that a lot of ladies want carpet upstairs.
0:10:25 > 0:10:28I'll certainly be putting hard-wood flooring downstairs,
0:10:28 > 0:10:31so that should make an impression.
0:10:31 > 0:10:35'But there's little point in thinking about the finishing touches
0:10:35 > 0:10:40- 'till they've dealt with the mysterious damp problem.' - Worst case scenario is
0:10:40 > 0:10:45- that we have to get it injected, damp-proofed. - That's not a bad worst case.
0:10:45 > 0:10:50No, not really. Perhaps the render will have to come off the pine end, hopefully not. We'll have a look.
0:10:50 > 0:10:53Until we get that off the inside of the walls, it's hard to tell.
0:10:53 > 0:10:58- What kind of budget have you set aside? - £11,000 for materials and labour.
0:10:58 > 0:11:04I've kept £4,000 contingency for that damp issue, the big damp issue.
0:11:04 > 0:11:09And that's about it. So it brings it up to about £15,000 to get it done, really.
0:11:11 > 0:11:15'With a purchase price of £31,500,
0:11:15 > 0:11:19'that'll bring the total spend to over £46,500
0:11:19 > 0:11:24'if Rob and Mark don't get bogged down by those damp walls, of course.'
0:11:25 > 0:11:31This end bit here, that's definitely coming down. I'm going to open it out a little bit.
0:11:31 > 0:11:35Them steps coming down there are going to be open.
0:11:35 > 0:11:40Basically, downstairs, I'm probably going to keep it similar.
0:11:40 > 0:11:45Upstairs is going to be the change. We are going to split that big bedroom into two,
0:11:45 > 0:11:50so you've got the double windows at the front. I've taken measurements, so we will get away with it.
0:11:50 > 0:11:55- They'll be nice bedrooms for the size of the house. - And leave the downstairs loo?
0:11:55 > 0:11:58Unfortunately, yeah. It is the first house.
0:11:58 > 0:12:01We want to try and get it turned around as quickly as we can.
0:12:01 > 0:12:04So, unfortunately, it will be staying downstairs.
0:12:04 > 0:12:08- And once you've done this one, what's the plan then? - Get straight back to auction.
0:12:08 > 0:12:10- Onto the next one? - Onto the next one.
0:12:10 > 0:12:15- Congratulations, good luck and we look forward to seeing how you get on.- Thank you.
0:12:15 > 0:12:20So, an interesting house for Rob to take on as his first property development project.
0:12:20 > 0:12:22He seems to have everything pretty much in place,
0:12:22 > 0:12:26although the big unknown is what is causing that damp.
0:12:26 > 0:12:29And that could turn out to be a very expensive thing to fix.
0:12:29 > 0:12:33Will his £4,000 contingency be enough?
0:12:33 > 0:12:35You can find out later in the show.
0:12:41 > 0:12:45'This is Snodland in Kent, which lies between Maidstone and Chatham,
0:12:45 > 0:12:48'and a convenient couple of miles from the M20.
0:12:48 > 0:12:51'It's not a big place, but it's due to expand
0:12:51 > 0:12:56'due to a new development of over 1,000 homes in the Holborough area of town.
0:12:56 > 0:13:01'So, with all that new investment, I reckon Snodland could be worth a look.'
0:13:02 > 0:13:05So what does the centre of Snodland have to offer?
0:13:05 > 0:13:08Well, you'll be excited to hear, quite a lot.
0:13:08 > 0:13:14I'm here to see what was described in the catalogue as "substantial commercial property"
0:13:14 > 0:13:16right here, just off the high street.
0:13:16 > 0:13:21And substantial it is, with great big, massive display windows, which is always a plus.
0:13:21 > 0:13:25Until recently, it was a plumbing, heating and bathroom centre.
0:13:25 > 0:13:29With a guide price of £200,000 to £220,000,
0:13:29 > 0:13:32let's get inside and see if it washes its face.
0:13:35 > 0:13:39Ooh! First impressions, it's a very big space.
0:13:39 > 0:13:43From the outside, you don't think it's going to be as deep as this.
0:13:43 > 0:13:47And there is loads of room. Also, it's incredibly light.
0:13:47 > 0:13:51Once you take down all the brown paper from the windows and the boards, it'll be a lovely,
0:13:51 > 0:13:54wide-open, light space.
0:13:54 > 0:13:57# I need a wide-open space
0:13:57 > 0:13:59# I'm standing
0:13:59 > 0:14:04'But if that's not large enough for you, there's plenty more space out the back.'
0:14:04 > 0:14:07# Space
0:14:07 > 0:14:12'This place is massive, over 600 square feet, in fact, and that's just on the ground floor.
0:14:14 > 0:14:16'Let's head upstairs.'
0:14:16 > 0:14:20It's interesting. Up here, you can really see the old remnants of the bathroom showroom.
0:14:20 > 0:14:23You've got a hot little radiator plumbed in.
0:14:23 > 0:14:28There's hot tubs everywhere, doors leading to toilets.
0:14:28 > 0:14:33There's just so much space up here! When you first walk into a room like this,
0:14:33 > 0:14:39you just can't believe that it's actually going to have as much square-footage as this place has.
0:14:39 > 0:14:44But what I like about this is that it offers different things to different people.
0:14:44 > 0:14:48There's so much room. Endless opportunities here.
0:14:51 > 0:14:56'In fact, there's so much space, I'm slightly bewildered about what you'd do with it.
0:14:56 > 0:14:59'How many businesses require this much room?
0:14:59 > 0:15:02'And, more to the point, how many can afford this much square footage?
0:15:02 > 0:15:06'With that in mind, it's time to reveal a little secret.'
0:15:10 > 0:15:13So, you've had the tour. Now for the surprise.
0:15:13 > 0:15:16This lot was actually sold with planning permission
0:15:16 > 0:15:20to split the ground floor into three separate commercial units
0:15:20 > 0:15:25and turn the upper floors into three flats, two two-beds and one one-bed.
0:15:25 > 0:15:30It's quite an interesting twist. It means the building turns from a large, empty space
0:15:30 > 0:15:32most businesses would struggle to fill
0:15:32 > 0:15:36into a potentially profitable proposition.
0:15:36 > 0:15:40'I have to say, I'm excited, if not a little relieved,
0:15:40 > 0:15:42'that there are more options than meet the eye.
0:15:42 > 0:15:46'The area is a mix of commercial and residential properties,
0:15:46 > 0:15:48'so maybe this could work.
0:15:48 > 0:15:52'With all of this in mind, I'm going to take a second look around.'
0:15:52 > 0:15:57So let's think about these commercial units. How good an investment would they be?
0:15:57 > 0:16:01Each unit would have a large window facing the road and A1 usage,
0:16:01 > 0:16:05so that would make them suitable for any number of businesses.
0:16:05 > 0:16:08Dividing up the space into separate shops would be straightforward
0:16:08 > 0:16:12and could increase your rent from 13 grand per annum for the one big space
0:16:12 > 0:16:15to 18,000 per annum for three shops.
0:16:15 > 0:16:19So, in theory, it adds up. It's just a matter of getting all of them let.
0:16:19 > 0:16:24Little towns like this tend to struggle to support independent businesses
0:16:24 > 0:16:28with larger shopping centres siphoning off lots of their trade.
0:16:28 > 0:16:34The numbers look good, but you may need to work hard to actually see that cash.
0:16:34 > 0:16:36'It's certainly worth some serious thought.
0:16:36 > 0:16:41'A quick glance around town seems to suggest there's a decent amount of local trade,
0:16:41 > 0:16:47'but there are empty units, so you must question the wisdom of adding more to the mix.
0:16:47 > 0:16:50'What about the flats?'
0:16:51 > 0:16:54These planned flats will have a lot going for them.
0:16:54 > 0:16:58They're in the centre of town and you've got amenities coming out of your ears.
0:16:58 > 0:17:01I think they'd probably rent out in a flash.
0:17:01 > 0:17:05But when it comes to selling them, well, that is a different matter.
0:17:05 > 0:17:07The first hurdle would be getting a mortgage,
0:17:07 > 0:17:11since many companies won't lend on flats over commercial premises.
0:17:11 > 0:17:14Then you may have to put up with the noise from the units below
0:17:14 > 0:17:19and you don't have any idea what type of business is going to occupy those spaces.
0:17:19 > 0:17:23The A1 usage would rule out takeaways, for example, but not funeral directors.
0:17:23 > 0:17:27And who's to say the new tenants won't try for change of use, anyway?
0:17:27 > 0:17:30So flats like this are always a bit of a gamble,
0:17:30 > 0:17:33and while it may be worth the risk to some,
0:17:33 > 0:17:37you need to remember that others won't touch them with a barge pole.
0:17:37 > 0:17:42'So neither the commercial units nor the flats are dead certs to make instant cash.
0:17:42 > 0:17:45'And after all the expense of conversion,
0:17:45 > 0:17:50'you'd have to be prepared to see your lolly tied up in this lot for the foreseeable future.
0:17:51 > 0:17:55'There are issues with all the units, especially considering there's no parking,
0:17:55 > 0:18:02'which will put buyers off the flats and shoppers off the shops, so not ideal.
0:18:02 > 0:18:05'I asked a local estate agent what he thought.'
0:18:05 > 0:18:08My first thoughts in creating three residential units here
0:18:08 > 0:18:12in the upper parts, I think that's a good idea, good use of the space.
0:18:12 > 0:18:16I think there would be interest in the flats, particularly for renting.
0:18:16 > 0:18:19Less so, in the current market, for purchase.
0:18:21 > 0:18:24'What sort of rental return could the new owner expect on the flats?'
0:18:24 > 0:18:29Well, I would put the rental value for the one-bed at £450 a month
0:18:29 > 0:18:31and for the two-beds at £500 a month.
0:18:31 > 0:18:36'That's a potential annual income of over £17,000 on the flats alone.
0:18:36 > 0:18:41'Put together with the estimated £18,000 annual rent on the retail units,
0:18:41 > 0:18:45'and it doesn't sound bad, if you can get the tenants.
0:18:45 > 0:18:48'What if a developer bought, intending to sell it on?'
0:18:49 > 0:18:53As a developed property, with the conversions done,
0:18:53 > 0:18:57I would say the value is somewhere in the region of £450,000 to £500,000.
0:18:57 > 0:19:03As it stands at the moment, I think there'd be interest at about £200,000 to £220,000.
0:19:03 > 0:19:07This is a lot of property with a lot of options.
0:19:07 > 0:19:10And with the planning passed, well, it's an exciting opportunity.
0:19:10 > 0:19:16But getting this development to turn a profit will require a substantial amount of cash in the beginning
0:19:16 > 0:19:20and you may have to work hard to make sure it makes you money at the end.
0:19:20 > 0:19:23Let's see who thought it was worth it at the auction.
0:19:26 > 0:19:29So, what are we going to say on that one?
0:19:29 > 0:19:33It's got a guide of 200 to 220. Lots of building there, lots of potential.
0:19:33 > 0:19:37Can I see £200,000 for it? £200,000 for it?
0:19:37 > 0:19:39Give me 180, then. Start me at 180 if you wish.
0:19:39 > 0:19:42180. 180 I've got from two places.
0:19:42 > 0:19:47180. And 2. 182. And 5. 185. Thank you.
0:19:47 > 0:19:51190, I'm obliged. 5. 200 if you like.
0:19:51 > 0:19:53At £200,000 against you sitting down.
0:19:53 > 0:19:56200 it's with you. And 5 now.
0:19:56 > 0:19:59205 bid I have. 210 now do I see?
0:19:59 > 0:20:02206. And 7.
0:20:02 > 0:20:04207. We're down to ones.
0:20:04 > 0:20:08£206,000 then I have. 207 I'm looking for.
0:20:08 > 0:20:12Are we all done? 207. Can I say 8?
0:20:12 > 0:20:15208. Still not big money. 208.
0:20:15 > 0:20:18And 9. 209. It's easier in ones. 209.
0:20:18 > 0:20:21209. You're not going to miss it for £1,000.
0:20:21 > 0:20:24209 I'm bid.
0:20:24 > 0:20:28210. It's against you, 210. 11 if you wish.
0:20:28 > 0:20:32At £210,000. I've got it and I'm going to sell it for the first time.
0:20:32 > 0:20:36£210,000 for the second time.
0:20:36 > 0:20:40Third and final time, you're out of it on the right. Are we all done?
0:20:40 > 0:20:46- HAMMER BANGS - You've just bought Snodland, sir. 9931. Not the whole of Snodland.
0:20:47 > 0:20:52I can remember when you could've done, but it was a long time ago.
0:20:52 > 0:20:59'That final bid of £210,000 was made by Micky, who's arrived looking very dabber.
0:20:59 > 0:21:03'I want to know what such a smart gent wanted with this auction lot.'
0:21:03 > 0:21:07So, Micky, tell me, why did you want to buy this?
0:21:07 > 0:21:09Well, we've got a retail unit nearby
0:21:09 > 0:21:14and we were looking to expand, go for bigger premises
0:21:14 > 0:21:21and sell china, glassware, cutlery, all that fine dining experience.
0:21:21 > 0:21:23# China in your hand
0:21:23 > 0:21:25So where's your retail unit at the moment?
0:21:25 > 0:21:28It's in Tunbridge Wells, which is about half an hour drive away.
0:21:28 > 0:21:32The idea is to really pull people from across the Kent area
0:21:32 > 0:21:35and get them to come out and buy high-end goods from us.
0:21:37 > 0:21:40'So Micky's fairly confident he'll have the clientele.
0:21:40 > 0:21:45'The question is, does he have the stock to fill this place?'
0:21:45 > 0:21:49Micky, you have got an awful lot of space here.
0:21:49 > 0:21:55Are you going to be using the bottom and the top floors to display all your stuff?
0:21:55 > 0:21:59At first, we're just going to use the downstairs gallery,
0:21:59 > 0:22:02but the potential is really for upstairs, as well,
0:22:02 > 0:22:05as we expand, take on more and more companies.
0:22:05 > 0:22:09So it's got a lot of potential, that's what I really like about this property,
0:22:09 > 0:22:14we can just expand upwards and it's got all the potential there.
0:22:14 > 0:22:17You could potentially let this place out, develop it,
0:22:17 > 0:22:22turn it into something quite spectacular, get a bit of extra rent while you're at it.
0:22:22 > 0:22:26We could do, although it's not really in the plan for the moment.
0:22:26 > 0:22:29It's always nice to have a back-up, but currently,
0:22:29 > 0:22:33we're just focusing on what we do best, which is selling fine goods to the public.
0:22:33 > 0:22:37'There's no getting Micky away from his crystal and crockery,
0:22:37 > 0:22:43'but the one thing that may keep his customers away is the lack of parking.'
0:22:43 > 0:22:50The one big disadvantage with this unit is that we don't have anywhere to park your car easily.
0:22:50 > 0:22:53There is nearby parking, about ten minutes away,
0:22:53 > 0:22:57- but it is a slight disadvantage. - You'll have to have a valet service.
0:22:57 > 0:23:00- Yeah.- That's what you need to do, offer a valet service.
0:23:00 > 0:23:04- I think we'll be carrying a lot of china to people, yeah. - I think you will be.
0:23:04 > 0:23:09'Well, what this place lacks in parking Micky more than makes up for with drive and enthusiasm.
0:23:09 > 0:23:13'He opened his first shop less than a year ago with his mum and dad
0:23:13 > 0:23:16'and is keen for the empire to continue expanding.'
0:23:19 > 0:23:22- So are you the driving force behind this?- Yeah.
0:23:22 > 0:23:27- I am a little bit.- And how are mum and dad with that? Are they quite happy to give you the reins?
0:23:27 > 0:23:31Yeah, pretty good. We all work very well together.
0:23:31 > 0:23:37We're a good partnership and we discuss things through and we've had no falling out yet.
0:23:37 > 0:23:41- How many years has the business been running?- About ten months now.
0:23:41 > 0:23:43- OK. - So it's very exciting times for us.
0:23:43 > 0:23:48Really faster than we ever expected things to be moving, but we're getting there.
0:23:50 > 0:23:54'Micky and his parents have set aside £5,000 for the refurbishment
0:23:54 > 0:23:57'and they also have a contingency fund.
0:23:57 > 0:24:00'That's just as well, as Micky has concerns about the roof.
0:24:00 > 0:24:06'He suspects it may need replacing at a cost of around nine grand.
0:24:06 > 0:24:10'Other than that, though, it should be fairly straightforward.'
0:24:11 > 0:24:17- How long is it going to take you to develop this?- Probably about four months, I would imagine,
0:24:17 > 0:24:22to get it from start to finish. But that's including getting all the products in
0:24:22 > 0:24:26and really just doing the little fine jobs, as well.
0:24:26 > 0:24:30- So you're not really in a hurry, are you, to get this place up and running?- No.
0:24:30 > 0:24:34I'd like to do it as quickly as possible but also want to do a good job.
0:24:34 > 0:24:37Micky, hopefully, very exciting times ahead.
0:24:37 > 0:24:41It'll be great to see what you do to this place and how spectacular it looks.
0:24:41 > 0:24:43- Well done.- Thanks a lot. - Good luck with it.
0:24:45 > 0:24:49Micky's got a lot of space to fill here and some grand old plans to go with it.
0:24:49 > 0:24:53I am concerned about the location and the lack of parking.
0:24:53 > 0:24:56And he's got to make the most of that infectious enthusiasm
0:24:56 > 0:25:00to make this china business a smashing success.
0:25:00 > 0:25:04Find out if those tills are ringing later in the programme.
0:25:05 > 0:25:09'Coming up, you're going to have to splash the cash in Derby.'
0:25:09 > 0:25:14It's very tired and dated, isn't it? I think money in here would be very well spent.
0:25:15 > 0:25:20'Renovating this place isn't the only hurdle in Kent.'
0:25:20 > 0:25:25Moving thousands of plates and breakable china is never going to be easy.
0:25:28 > 0:25:32'But first, there's a pongy problem in Tonypandy.'
0:25:32 > 0:25:35The house really did stink.
0:25:40 > 0:25:44'We're back in the Rhondda Valley now to catch up with Rob.
0:25:44 > 0:25:48'He paid £31,500 for this end-of-terrace.
0:25:48 > 0:25:51'He bought it with his work mate Mark
0:25:51 > 0:25:55'and they saw it as their chance to build a different future for themselves.'
0:25:56 > 0:26:00I've always wanted to get into the property development side of it,
0:26:00 > 0:26:03I've been a carpenter all my life, so it was just a matter of time,
0:26:03 > 0:26:08of getting the money together and getting things kicked off and started.
0:26:08 > 0:26:11- So is this number one? - This is number one. Numero uno.
0:26:11 > 0:26:16'The house needed total renovation and was riddled with damp.
0:26:16 > 0:26:20'The bathroom was downstairs and needed to be ripped out altogether
0:26:20 > 0:26:23'and the kitchen was in a similar state.
0:26:24 > 0:26:26'The upstairs layout needed a rethink
0:26:26 > 0:26:31'because of the gigantic main bedroom and tiny second room.
0:26:32 > 0:26:38'Well, all that was eight months ago, so let's see how Rob and Mark have been getting on.
0:26:47 > 0:26:52'The house has certainly come a long way since Rob and Mark took on the project.'
0:26:52 > 0:26:55The house really did stink.
0:26:55 > 0:26:59You could almost feel the damp, just walking through the house.
0:26:59 > 0:27:06Basically, with the damp, when people have put boards and wallpaper and whatnot over it,
0:27:06 > 0:27:10the damp seems to hold into these walls, you know?
0:27:10 > 0:27:13And once you sort of let them breathe again, the damp can come out.
0:27:13 > 0:27:18So once we had done that, we let the walls dry out for a week or two,
0:27:18 > 0:27:23then we had them injected, then we rendered them, you could see the damp had gone from there,
0:27:23 > 0:27:26so we carried on with boarding and plastering.
0:27:26 > 0:27:30'The original kitchen in the property was basic to say the least,
0:27:30 > 0:27:33'but Mark and Rob have spared no expense in bringing it up to
0:27:33 > 0:27:39'and beyond the standard you might expect for a house like this.
0:27:43 > 0:27:47'They chose to keep the bathroom in its original position on the ground floor
0:27:47 > 0:27:51'but, again, they've transformed it to a very high specification.
0:27:56 > 0:28:01'And in the living room, they've not just renovated and decorated to a basic standard
0:28:01 > 0:28:07'but have been very creative to make the space as attractive as possible.'
0:28:07 > 0:28:12What can you do to a square-roomed terraced house? It's very hard.
0:28:12 > 0:28:16You've got to take a look at the place, see where the openings are
0:28:16 > 0:28:22and try and see if you can put something in here, make a feature out of something that's not a feature.
0:28:22 > 0:28:24We chucked a couple of ideas into it
0:28:24 > 0:28:29and, obviously, we didn't want to stick to square shelving,
0:28:29 > 0:28:33cos everyone does that, so we came up with that shape
0:28:33 > 0:28:35and it was a winner.
0:28:37 > 0:28:41'Upstairs is clean and, again, very well finished.
0:28:41 > 0:28:45'Rob and Mark have made the obvious decision to maximise both the space
0:28:45 > 0:28:48'and their profitability.'
0:28:48 > 0:28:51We turned one room into two.
0:28:51 > 0:28:55'The original master bedroom was too big for the size of the property
0:28:55 > 0:28:59'so splitting it in two was a smart move.'
0:28:59 > 0:29:02I took my calculator out, measured the square metres
0:29:02 > 0:29:07and realised that, moving a couple of walls around up there, we could fit the third bedroom in.
0:29:07 > 0:29:15All right, just a child's bedroom, but you can fit a single bed in there, so we went for it.
0:29:18 > 0:29:22'Outside, they've removed the big shed,
0:29:22 > 0:29:25're-rendered and repainted the whole house,
0:29:25 > 0:29:28'as well as replacing the roof and the gutters.
0:29:28 > 0:29:34'There's still a bit more to do, but surprisingly, their first renovation went pretty smoothly.
0:29:34 > 0:29:36'Well, most of the time.'
0:29:36 > 0:29:39Everything's been expected.
0:29:39 > 0:29:42I said to Mark in the beginning, "There will be ups and downs,
0:29:42 > 0:29:46"there will be times when we feel like throttling each other."
0:29:46 > 0:29:50Them times did happen, but we got through it. You have to.
0:29:50 > 0:29:57You just sit down and talk about it, you come to an agreement and you carry on.
0:29:58 > 0:30:02'Rob and Mark originally had a budget of £11,000
0:30:02 > 0:30:06'with an extra £4,000 to deal with the damp problems in the house.
0:30:06 > 0:30:09'But judging by the standard of the finish,
0:30:09 > 0:30:15'it's no surprise to hear they've actually spent a total of £18,000 on the work so far.'
0:30:15 > 0:30:22There was no way I was going to do this house, get to the end and scrimp out on the fixtures and fittings,
0:30:22 > 0:30:24on the standard of the fixtures and fittings.
0:30:24 > 0:30:28It's worth doing in the end. If it sells that much quicker
0:30:28 > 0:30:34just on spending a couple of extra quid on standard, then to me, that's what I'm going to do.
0:30:34 > 0:30:37'That is a very admirable sentiment from Rob,
0:30:37 > 0:30:40'but will it prove to be a good strategy?
0:30:43 > 0:30:47'Time to get some expert opinion from two local estate agents.'
0:30:47 > 0:30:51In comparison to my first visit, you cannot believe
0:30:51 > 0:30:53once you walk in, that you're in the same property.
0:30:53 > 0:30:58The quality of fittings in the bathroom and kitchen are first-class
0:30:58 > 0:31:02and I think it would appeal to any family to come and live here.
0:31:02 > 0:31:06I think he's done a great job. He's gone for a really high finish
0:31:06 > 0:31:10which, in this market, is needed. It's definitely got the X factor.
0:31:10 > 0:31:13It's exactly what any first-time buyer is looking for. Perfect.
0:31:14 > 0:31:17'A glowing report.
0:31:17 > 0:31:22'Remember, Rob and Mark purchased this terraced house for £31,500
0:31:22 > 0:31:29'and have spent £18,000 doing it up, meaning their outlay so far is £49,500.
0:31:31 > 0:31:35'How much value have they added?'
0:31:35 > 0:31:41Currently, I would estimate an asking price of £75,000 to £80,000,
0:31:41 > 0:31:45to achieve around about the £75,000.
0:31:45 > 0:31:50I would put this on the market for £79,000, to achieve £75,000.
0:31:50 > 0:31:54'If they achieve that, it could give the boys a pre-tax profit
0:31:54 > 0:32:00'of just over £25,000, minus the usual selling expenses, of course.'
0:32:02 > 0:32:06Happy with that. That's close to what we expected.
0:32:06 > 0:32:11I didn't expect to break any ceiling price within the street,
0:32:11 > 0:32:14no matter what was spent on fixtures and fittings.
0:32:14 > 0:32:18It just doesn't happen. So, yeah, that's about right.
0:32:19 > 0:32:24'If Rob and Mark decided to become landlords, the estate agents reckon this house
0:32:24 > 0:32:28'could provide an income of around £400 per calendar month.
0:32:28 > 0:32:31'That would mean an impressive yield of over nine percent.
0:32:31 > 0:32:33'So, will they sell or rent?'
0:32:33 > 0:32:36Not 100 percent on that one yet,
0:32:36 > 0:32:40the reason being the way the market is now.
0:32:40 > 0:32:45With the way things are, perhaps we may be better holding onto it, renting it out,
0:32:45 > 0:32:48seeing what the market's like next year or in two years
0:32:48 > 0:32:51and perhaps getting that extra money then.
0:32:53 > 0:32:55'Now that Rob's first property's almost complete,
0:32:55 > 0:32:59'does he see himself continuing to develop more properties?'
0:32:59 > 0:33:02I would do it again, and I will be doing it again.
0:33:02 > 0:33:05When, I do not know. We'll always have our eye open
0:33:05 > 0:33:08and we'll still be going to the auctions, having a look.
0:33:08 > 0:33:12If another like this comes along, I'd snap it up straight away, put it that way.
0:33:15 > 0:33:20I'm in Mickleover, a very desirable part of Derby.
0:33:20 > 0:33:24I'm here to see a bungalow. Some people have a bit of a thing about bungalows.
0:33:24 > 0:33:28Uninspiring, unimaginative bits of architecture, they say. Not me!
0:33:28 > 0:33:33I like them. I was brought up in one and I think they're fab!
0:33:33 > 0:33:37# I always knew I was crazy for you
0:33:37 > 0:33:40'We Brits usually tend to prefer two-storey houses,
0:33:40 > 0:33:44'but bungalows are popular in other parts of the world, and rightly so, in my opinion.'
0:33:44 > 0:33:46# It's fabulous
0:33:46 > 0:33:52So will today's bungalow be the one that changes your opinion of single-storey structures?
0:33:52 > 0:33:54You know what? I think it might.
0:33:56 > 0:33:59It's got a garage, parking there for a couple of cars,
0:33:59 > 0:34:04mature gardens front and back. I'm liking what I'm seeing!
0:34:04 > 0:34:08'Yes, for that guide price of 160 grand, it looks promising.'
0:34:09 > 0:34:14So, what does it hold across the threshold?
0:34:15 > 0:34:20Actually, it looks all right. It's got a bit of a musty smell, like it hasn't been lived in for a while,
0:34:20 > 0:34:22a little bit dated, but not a bad start.
0:34:22 > 0:34:25Through into the kitchen straight away.
0:34:25 > 0:34:30Well, it's very tired and dated, isn't it?
0:34:30 > 0:34:32I think money in here would be very well spent,
0:34:32 > 0:34:36cos it's not a bad space, lots of light pouring in through the window,
0:34:36 > 0:34:42and really nice, high ceilings, which is lovely to have and not always the case in bungalows.
0:34:42 > 0:34:45Little bit of a useful utility area out there,
0:34:45 > 0:34:50somewhere to store your bikes and maybe have your washing machine. All in all, not bad.
0:34:50 > 0:34:55Designs of bungalows tend to vary. Some have a large central area, which I quite like.
0:34:55 > 0:35:00This one has a corridor which links all the different rooms, which can make it feel a bit claustrophobic,
0:35:00 > 0:35:06although those high ceilings do counteract that slightly. But large living room there.
0:35:06 > 0:35:09Bathroom and loo there. Bedroom one, bedroom two.
0:35:09 > 0:35:12Third bedroom here. This is nice.
0:35:12 > 0:35:17I like that you've got these patio doors out onto the garden. And then it continues on through there.
0:35:17 > 0:35:22So, actually, you've got a lot of space in this place.
0:35:22 > 0:35:24# It's fabulous
0:35:24 > 0:35:28'And that third bedroom continues through to this other smaller room.
0:35:28 > 0:35:33'That could be converted into a study, children's play room or en suite bathroom.'
0:35:33 > 0:35:36Well, at the rear of the property, an absolutely humongous garden
0:35:36 > 0:35:40split into three areas, really. Bit at the far back there,
0:35:40 > 0:35:44that could be a nice vegetable plot, although the first time I saw it,
0:35:44 > 0:35:47I thought, "Ooh, I wonder if you could get an access road in there".
0:35:47 > 0:35:50Then it becomes a building plot. How exciting is that?
0:35:50 > 0:35:55You've then got this middle area. The grass needs a bit of a mow, but a nice size, with a summer house.
0:35:55 > 0:36:00And then as you move closer towards the house, you've got these nice mature shrubs
0:36:00 > 0:36:04and then immediately adjoining the bungalow, this amenity area.
0:36:04 > 0:36:09All in all, what you've got here is a fantastic asset to the property.
0:36:09 > 0:36:14'And all this for a guide price of £160,000. What a bargain.
0:36:16 > 0:36:19'Time to get the opinion of the auctioneer who sold it.'
0:36:19 > 0:36:23First impressions are that it needs a bit of money spending on it.
0:36:23 > 0:36:26It structurally seems all right. It's a bit tired,
0:36:26 > 0:36:29it wants a refit in terms of bathroom, kitchen,
0:36:29 > 0:36:33but lovely location, nice big garden, got a lot of potential.
0:36:35 > 0:36:39'Talking of potential, if the new owner could get planning permission,
0:36:39 > 0:36:42'is the bungalow worth extending?'
0:36:42 > 0:36:46It actually calls for a better property than what is here.
0:36:46 > 0:36:51By that, I mean you could improve it, you could add to it, extend it.
0:36:51 > 0:36:55The ceiling value is greater than just renovating what is here,
0:36:55 > 0:36:58so there are possibilities for extending backwards,
0:36:58 > 0:37:03you could probably go up into the roof space, make further rooms up there.
0:37:03 > 0:37:09'And if the new owner wanted to realise its potential, what could the completed property be worth?'
0:37:09 > 0:37:15I think it's got to become a four-bedroom residence on two floors to do the best with it.
0:37:15 > 0:37:20Having said that, if you renovate what is here without doing that,
0:37:20 > 0:37:24I would say it's probably got an ultimate value of about £200,000.
0:37:24 > 0:37:30If you go beyond that and add on extra bedrooms, rooms at the back and so on,
0:37:30 > 0:37:33you could actually take its value to nearer £300,000.
0:37:33 > 0:37:36'Definitely some profit to be made here, then.
0:37:36 > 0:37:39'How would it square up as a rental investment?'
0:37:39 > 0:37:43You'd only renovate what is here if you were going down the lettings route,
0:37:43 > 0:37:47but assuming that you brought it up to a reasonably good standard,
0:37:47 > 0:37:51it would have a rental income of probably about £650 per calendar month.
0:37:52 > 0:37:58Well, it's a good, solid bungalow with loads of options in a lovely part of Derby.
0:37:58 > 0:38:03I think it's an excellent one to go for. Let's see who fancied it when it went under the hammer.
0:38:05 > 0:38:09It's a traditional detached bungalow. It's been extended.
0:38:09 > 0:38:13It provides three or four-bedroomed accommodation.
0:38:13 > 0:38:18Good residential area, ladies and gentlemen. Where do you want to be? Start me at 170.
0:38:18 > 0:38:20165.
0:38:20 > 0:38:23165. 160, where you like.
0:38:23 > 0:38:26- 150. - 150, thank you. 150, a spoken bid.
0:38:26 > 0:38:30151 at the back. 151. 152.
0:38:30 > 0:38:33153. 154.
0:38:33 > 0:38:3655. 156.
0:38:36 > 0:38:38157.
0:38:38 > 0:38:40158. 159.
0:38:40 > 0:38:44160. The bid is £160,000.
0:38:44 > 0:38:4761. 162
0:38:47 > 0:38:49163.
0:38:49 > 0:38:52165. 165,000.
0:38:52 > 0:38:5766. £166,000. All done with it? For the first time.
0:38:57 > 0:39:00166,500.
0:39:00 > 0:39:03167? 167.
0:39:03 > 0:39:06167,000.
0:39:06 > 0:39:09- Once. Twice. Third time. - HAMMER BANGS
0:39:09 > 0:39:12Sold at 167. Thank you.
0:39:14 > 0:39:17'The bid that sealed the deal was placed by Miles.
0:39:17 > 0:39:21'He bought the property for £167,000
0:39:21 > 0:39:24'for himself, wife Helen and their baby, Hannah.
0:39:24 > 0:39:30'Miles currently puts up for-sale signs for estate agents and Helen is an accountant.
0:39:30 > 0:39:34'I caught up with them back at the bungalow to find out their plans.'
0:39:34 > 0:39:38- Miles, Helen, lovely to meet you both.- And you. - Congratulations.- Thank you.
0:39:38 > 0:39:44- Why did you want to buy it? - Cos we've been living down in Surrey or London for the last 12 years.
0:39:44 > 0:39:49We moved down there for work and we've just started a family, it's time to come home.
0:39:49 > 0:39:54With a young daughter, it seemed better to move closer rather than spend so much time on the M1.
0:39:54 > 0:39:58- Right. So your grandparents are up this neck of the woods.- Yeah.
0:39:58 > 0:40:02- A great thing to have when you've got small children.- Definitely. - And they love it, too.
0:40:02 > 0:40:05- That's my experience, anyway. - That's the hope.
0:40:05 > 0:40:10- Tell me exactly what you're going to do here.- We're not exactly sure.
0:40:10 > 0:40:15I mean, there is a case for just ripping out and starting again and just doing it up as a bungalow.
0:40:15 > 0:40:18Alternatively, there's some space in the loft.
0:40:18 > 0:40:21We could convert that.
0:40:21 > 0:40:26- Or the other option is to actually stick another storey on top. - A whole storey?- Yes.
0:40:26 > 0:40:31- Has anyone else in the area done that?- I'm sure anybody's done this,
0:40:31 > 0:40:35but all the other houses, bar next door, are two-storey already,
0:40:35 > 0:40:39so, subject to planning, I don't see a problem for putting another storey on top of this.
0:40:39 > 0:40:44And it'd fit quite nicely in the street. I don't think there'd be too much of an issue.
0:40:46 > 0:40:49'Wow! That's certainly an ambitious plan.
0:40:49 > 0:40:53'But it would increase the value and the living space here.'
0:40:53 > 0:40:55# Just move on up
0:40:55 > 0:40:59I'm quite confident that sticking another storey on might be the way forward.
0:40:59 > 0:41:06- Right.- Use a timber frame. Take the roof off, timber frame, put the roof back on and it's pretty much done.
0:41:06 > 0:41:10Right. You make it sound remarkably easy. Have you done anything like that before?
0:41:10 > 0:41:12Not quite as complicated as that, no.
0:41:12 > 0:41:16Extension on the last house, but another storey is a whole new experience.
0:41:16 > 0:41:18And would you be doing it?
0:41:18 > 0:41:24Probably get somebody in to crane the timber framing on and put that together, but after that, yes.
0:41:24 > 0:41:28- Wow!- Give it a go.- Bit of a challenge.- Yeah. Why not?
0:41:29 > 0:41:35'Whilst Miles and Helen have renovated a house before, this could be a whole different ball game.
0:41:35 > 0:41:37'I hope they know what they're taking on
0:41:37 > 0:41:43'as this kind of major structural work is usually best left to the professionals.'
0:41:43 > 0:41:48When we bought in London, we bought a house in a similar condition to this and did it up.
0:41:48 > 0:41:53Admittedly, it took us a long time, because we were both working full-time while we were doing it.
0:41:53 > 0:41:58- You smirk when you say that. How long?- Abut six years.- Oops.
0:41:58 > 0:42:01So what's going to influence your decision?
0:42:01 > 0:42:08Cost, obviously, to start with, and what the house will be worth when it's done up.
0:42:08 > 0:42:12'Fingers crossed they complete this property a little quicker than the last one.
0:42:12 > 0:42:15'What sort of funds do they have?'
0:42:15 > 0:42:21We thought around about £20,000 if we were just going to renovate the property as it stands.
0:42:21 > 0:42:25In terms of the other two options, we haven't really looked at the costings as yet.
0:42:25 > 0:42:28And in terms of inside, things like the kitchen,
0:42:28 > 0:42:31how will that vary depending on what you decide to do?
0:42:31 > 0:42:36The kitchen is a nice size as a kitchen at the moment, but I think we need a dining area somewhere,
0:42:36 > 0:42:40so we're not quite sure how we'll play around with the layout to get that.
0:42:40 > 0:42:43It very much depends on where we go with the place.
0:42:43 > 0:42:48If we can use the loft, then obviously it frees up one of the bedrooms on the ground floor
0:42:48 > 0:42:50to be used as a dining or entertaining area,
0:42:50 > 0:42:56and maybe we can knock the kitchen through into the living room and make it a larger space.
0:42:56 > 0:43:02But I don't know at the moment. I'm going to go away and think about it, suck it and see.
0:43:03 > 0:43:07'Sounds like it's all still up for grabs.
0:43:07 > 0:43:11'But, of course, what happens inside is only half the story.
0:43:11 > 0:43:14'They've also got to tame that massive garden.'
0:43:14 > 0:43:18I think that's probably where I come in. I'm quite a keen gardener.
0:43:18 > 0:43:22My mother's a very good gardener, so she'll have to help me.
0:43:22 > 0:43:26You can see that probably the top quarter of the garden is sectioned off
0:43:26 > 0:43:29and, at the moment, it's just got old trees stacked in it.
0:43:29 > 0:43:34I think, if we clear that, I'd still leave it sectioned off and have a vegetable garden up there
0:43:34 > 0:43:39and then use the rest of the area as a family and entertaining garden,
0:43:39 > 0:43:44have some decking and a nice barbecue area. There's so much space, it could be fantastic.
0:43:44 > 0:43:49- Congratulations. Good luck with it. - Thanks very much.- We look forward to seeing how you get on.
0:43:50 > 0:43:53So, what will Helen and Miles do to this place?
0:43:53 > 0:43:57Restore it as it is, put a dormer in, create a two-storey structure here?
0:43:57 > 0:44:00And will the budget hold up?
0:44:00 > 0:44:02You can find out later in the show.
0:44:05 > 0:44:09There's been plenty of time for our buyers to start work on their properties.
0:44:09 > 0:44:13But have they actually done anything or have they been beset by problems?
0:44:13 > 0:44:19- Time is money. Have they made any or have they lost any? - Let's go back and find out.
0:44:22 > 0:44:27'We're back in Snodland, which used to be Kent's largest village.
0:44:27 > 0:44:31'Micky was hoping its residents would welcome his new business.
0:44:31 > 0:44:34'He bought this former bathroom showroom at auction
0:44:34 > 0:44:39'for £210,000, well within the guide price range.
0:44:39 > 0:44:45'Although it was sold with planning permission for three retail units and three residential flats,
0:44:45 > 0:44:48'Micky planned to keep things largely as they were.
0:44:48 > 0:44:54'He was going to use it as a second premises for his business, selling china and glassware.
0:44:54 > 0:44:59'He hoped to attract customers from all over Kent, but there was one problem.'
0:45:01 > 0:45:04It is the one big disadvantage with this unit,
0:45:04 > 0:45:08you don't have anywhere to just park your car easily.
0:45:08 > 0:45:13- You're going to have to have a valet service.- Yeah.- That's what you need to do. Offer a valet service.
0:45:13 > 0:45:17- I think we'll be carrying a lot of china to people.- I think you will be.
0:45:17 > 0:45:22'As a shop, every day it was closed, it was costing money.
0:45:22 > 0:45:25'So Micky wanted to have it all ready for business in just four months.
0:45:25 > 0:45:28'So, four months later, we're back.
0:45:28 > 0:45:30'Is he ready to open his doors to the public?'
0:45:30 > 0:45:33# I'm blue, dab-a-dee, dab-a-dah
0:45:33 > 0:45:35# Dab-a-dee, dab-a-dah
0:45:37 > 0:45:40'Well, you can't miss it, that's for sure.'
0:45:43 > 0:45:49We totally repainted the shop. We're now the big blue building in Snodland, so that's good,
0:45:49 > 0:45:53and you can see us from the other side of Snodland, which is nice.
0:45:53 > 0:45:56And it gets people to know who you are and where you are.
0:45:58 > 0:46:02'I'm sure the residents of, and visitors to, Snodland do.
0:46:02 > 0:46:06'Four months ago, the interior was a huge empty space.
0:46:06 > 0:46:10'Now it's an ideal showroom for Micky's growing business.'
0:46:10 > 0:46:15# It's just tea for two and two for tea
0:46:15 > 0:46:19# Me for you and you for me
0:46:19 > 0:46:24# Can't you see how happy we could be?
0:46:24 > 0:46:29We've totally redone the place. We've put in cabinets and flooring
0:46:29 > 0:46:32and repainted all of the gallery
0:46:32 > 0:46:34and moved all out stock in there.
0:46:38 > 0:46:45There's still some work to do on our first floor, but the number one priority is opening up the store
0:46:45 > 0:46:48and letting customers back in again.
0:46:48 > 0:46:52'The showroom's only days away from its grand opening
0:46:52 > 0:46:55'and Micky's thrilled with his new premises.'
0:46:55 > 0:46:58Yeah, I'm really happy with it, actually.
0:46:58 > 0:47:00It's really worked out quite nicely.
0:47:00 > 0:47:04We didn't have a huge budget for things, but we seem to have done a good job
0:47:04 > 0:47:08and it looks all nice and clean and brand new.
0:47:08 > 0:47:12'Carpets and cabinets weren't the only new additions here.
0:47:12 > 0:47:17'As Micky suspected, the roof needed to be replaced. That meant his nine grand contingency,
0:47:17 > 0:47:21'on top of his £5,000 budget, did have to be spent.
0:47:21 > 0:47:24'But the roof wasn't his biggest problem.'
0:47:25 > 0:47:32Obviously, moving hundreds, thousands of plates and breakable china,
0:47:32 > 0:47:36glassware around is never going to be easy.
0:47:36 > 0:47:40But we've managed it with, I think, two broken plates so far,
0:47:40 > 0:47:43so we did a pretty good job in the end.
0:47:43 > 0:47:46'Micky bought the premises for £210,000
0:47:46 > 0:47:51'and has spent a further £15,000 refitting it and replacing the roof.
0:47:51 > 0:47:56'This gave him a total outlay of £225,000 plus legal costs.
0:47:56 > 0:48:01'Quite an investment for a business that was formed just over a year ago.
0:48:05 > 0:48:08'Let's see if two local estate agents think this place
0:48:08 > 0:48:10'will give Micky a solid return.'
0:48:12 > 0:48:14My first impressions were very good.
0:48:14 > 0:48:17They've worked very hard achieving what they've done so far.
0:48:17 > 0:48:21A very large showroom which looks very enterprising.
0:48:24 > 0:48:28I must say, I was incredibly surprised. I had a feeling
0:48:28 > 0:48:31from the outside, because it does look different and really nice,
0:48:31 > 0:48:35but you walk in, you think you're in a London store. Very impressive.
0:48:37 > 0:48:40'Sounds as though he's got at least two new customers.
0:48:40 > 0:48:45'Although Micky has no intention of selling or renting out any of the floor space,
0:48:45 > 0:48:48'I'm interested to know if the premises have increased in value.
0:48:48 > 0:48:52'Remember, the total spend here was £225,000.'
0:48:53 > 0:49:00I would think, in the way it's been set up, they should manage to get about £250,000, maybe £300,000,
0:49:00 > 0:49:04depending on what planning they've got to do to the upstairs.
0:49:04 > 0:49:08'That resale valuation is based on selling it as a leasehold
0:49:08 > 0:49:12'and keeping hold of the freehold, but that would be pretty difficult to do here.
0:49:12 > 0:49:17'So what difference would it make if it was sold as it is with the freehold?'
0:49:18 > 0:49:22Should they choose to sell on the freehold of the property,
0:49:22 > 0:49:27completed as a whole, they should achieve £360,000.
0:49:27 > 0:49:31'So even before the first customer walks through the door,
0:49:31 > 0:49:36'Micky's potentially added value of between £25,000 and £135,000,
0:49:36 > 0:49:40'depending on whether or not it was sold with the freehold.'
0:49:42 > 0:49:45It's great to hear that it's gone up by so much.
0:49:45 > 0:49:49Hopefully, we'll find trade is really good round here and we'll progress.
0:49:49 > 0:49:52We've got a load more manufacturers to take on board
0:49:52 > 0:49:57and hopefully we can be selling china to people throughout Kent and beyond.
0:50:04 > 0:50:08'It's time to go back to Mickleover, Derby, now.
0:50:08 > 0:50:13'Miles and Helen bought this three-bed bungalow at auction for £167,000.
0:50:13 > 0:50:16'Miles planned to do all the renovation work himself
0:50:16 > 0:50:22'and was even considering putting a whole new storey on top of the existing structure.
0:50:22 > 0:50:25'The place also had a huge garden that needed sorting.
0:50:25 > 0:50:29'But it was OK, as the couple had renovated a property before,
0:50:29 > 0:50:32'although it had taken them a while to complete it.'
0:50:33 > 0:50:37We bought a house in a similar condition to this and did it up.
0:50:37 > 0:50:39Admittedly, it took us quite a long time.
0:50:39 > 0:50:44- You smirked. How quite? - About six years.- Oops.
0:50:46 > 0:50:54'It's now over 12 months since we last saw the property. So let's see what they decided to do.
0:50:55 > 0:50:58'Well, it's still a bungalow,
0:50:58 > 0:51:02'and apart from all the building materials, it hasn't changed that much out front.
0:51:07 > 0:51:12'But inside, it's in the middle of a complete transformation.
0:51:15 > 0:51:19'And the back of the house is unrecognisable, too.'
0:51:21 > 0:51:26We can see at the back that we've extended the bedroom out all the way to the boundary
0:51:26 > 0:51:31and done away with the passageway down the side, which makes the bedroom and the garage wider
0:51:31 > 0:51:36and bigger rooms, and then we've put a big extension for the living room on the back,
0:51:36 > 0:51:39double doors into the garden, nice big windows to make it nice and light.
0:51:39 > 0:51:43We decided to extend out rather than up based on the advice of local agents.
0:51:43 > 0:51:48They suggested that people like bungalows and there's a market for them
0:51:48 > 0:51:50and not to mess about with it too much.
0:51:52 > 0:51:57'It took four months to get the planning permission and Miles has been hard at work ever since.
0:51:57 > 0:52:00'Gone are the dated rooms and awkward layout.
0:52:00 > 0:52:04'Now the living spaces are on one side of the house
0:52:04 > 0:52:07'with the original kitchen extended to a kitchen-diner
0:52:07 > 0:52:11'and a spacious living area stretching out to the garden.'
0:52:13 > 0:52:15The property previously was a bit of a mish-mash
0:52:15 > 0:52:20It was bits and pieces everywhere, nothing seemed to flow in the right place.
0:52:20 > 0:52:22I think, by moving some of the bits and bobs around,
0:52:22 > 0:52:26we've created something that works as a living space
0:52:26 > 0:52:29rather than something that was just somewhere to live.
0:52:29 > 0:52:33'The other side of the house contains the property's three bedrooms,
0:52:33 > 0:52:38'a new bathroom, complete with a run-away washing machine at the moment,
0:52:38 > 0:52:42'and a master bedroom, which will have an en suite bathroom.
0:52:42 > 0:52:47'The family have been living in rented accommodation while Miles does the work.
0:52:47 > 0:52:51'He's done the majority himself, but his dad's been keen to lend a helping hand.'
0:52:51 > 0:52:56I've learnt an awful lot about some aspects of building that I haven't dealt with before.
0:52:56 > 0:52:59I've never cast a concrete floor or installed windows before.
0:52:59 > 0:53:03There's always something new. But it's interesting. I enjoy it.
0:53:04 > 0:53:08'Helen's returned to work in London after her maternity leave,
0:53:08 > 0:53:14'so Miles has had to juggle the renovation with looking after their daughter, Hannah.
0:53:14 > 0:53:17'They had an original budget of £20,000,
0:53:17 > 0:53:22'but have actually spent around £29,000 so far on the work,
0:53:22 > 0:53:26'with an estimated £10,000 needed to finish off.
0:53:26 > 0:53:31'But at least things are taking shape and the end is now in sight.'
0:53:31 > 0:53:34We both feel quite good about it at the moment.
0:53:34 > 0:53:36Now that you can finally see something happening
0:53:36 > 0:53:42and the end seems to be quite near, we're feeling much better about it than we did a couple of months ago.
0:53:42 > 0:53:49'With a purchase price of £167,000 and a projected renovation budget of £39,000,
0:53:49 > 0:53:53'Miles and Helen's total outlay will be around 206 grand.
0:53:55 > 0:53:59'But has their hard work been worth it?
0:53:59 > 0:54:03'Time to hear from two local estate agents.'
0:54:03 > 0:54:06First impression, there's still quite a lot of work to be done.
0:54:06 > 0:54:08The layout seems quite good,
0:54:08 > 0:54:11and if it's done to a good standard, it will sell very well.
0:54:11 > 0:54:16I like the use of space and I like the extension.
0:54:16 > 0:54:18putting an extension on the back of the property
0:54:18 > 0:54:23has certainly increased the space inside. I think the decision to keep the property
0:54:23 > 0:54:28as a single-storey dwelling was probably the best decision.
0:54:28 > 0:54:31A dormer bungalow has uses,
0:54:31 > 0:54:35but generally, it does mean you still get a downstairs bathroom,
0:54:35 > 0:54:38which, unfortunately, can go against you in resale.
0:54:40 > 0:54:47'It sounds good so far, but what price would this bungalow fetch once all of Miles' hard graft is done,
0:54:47 > 0:54:50'at a total cost of around £206,000?'
0:54:50 > 0:54:55If I put this property on the market, once completed and assuming it's done to a very good standard,
0:54:55 > 0:55:00I'd expect it to achieve in the region of £230,000 to £240,000.
0:55:00 > 0:55:04I would expect to achieve on this property, once finished to a high specification,
0:55:04 > 0:55:07between £230,000 and £240,000.
0:55:07 > 0:55:11'Those valuations could give Miles and Helen a pre-tax profit
0:55:11 > 0:55:15'of between £24,000 and £34,000.'
0:55:15 > 0:55:19Sounds fair enough. I know the market's slightly depressed at the moment,
0:55:19 > 0:55:22so, yeah, sounds about right. It's what we expected.
0:55:22 > 0:55:26'If Miles and Helen decided they wanted to rent it out,
0:55:26 > 0:55:30'what kind of rental income could the bungalow provide?'
0:55:30 > 0:55:36If I put this property up for rent, once completed, I'd expect it to achieve £850 per calendar month.
0:55:36 > 0:55:39I believe the property would receive, once completed,
0:55:39 > 0:55:43a rent of between £700 and £750 per calendar month.
0:55:43 > 0:55:49Great. I'm paying £650 at the moment for a three-bedroom house, so sounds good to me.
0:55:51 > 0:55:56'Miles may have learned some hard lessons here, but he hasn't been put off.
0:55:56 > 0:56:00'He's not only added more space to the bungalow, he's also added value.
0:56:00 > 0:56:05'How does he feel about the project now that he can see the light at the end of the tunnel?'
0:56:05 > 0:56:12I'd definitely take on a project like this again. On the other hand, I might change what we did slightly.
0:56:12 > 0:56:17We might look to buy something that we could actually live in while we maybe extended it,
0:56:17 > 0:56:22rather than having to pay out a mortgage and also rental money,
0:56:22 > 0:56:24which makes things quite tight.
0:56:24 > 0:56:28'Miles is confident that he will be finished within a couple of months
0:56:28 > 0:56:31'and Helen now has a new job in the local area.
0:56:31 > 0:56:35'So the family are finally looking forward to spending more time together
0:56:35 > 0:56:37'in their lovely new bungalow.'
0:56:37 > 0:56:40I'm very pleased to be in our own home again as a family.
0:56:40 > 0:56:43It'll be great to be living as one, as it were.
0:56:45 > 0:56:49See you next time when we have more auction stories to inspire you.
0:56:49 > 0:56:53- Yes, more stories from Homes Under The Hammer.- See you then.- Goodbye.
0:56:54 > 0:56:58Subtitles by Red Bee Media Ltd
0:56:58 > 0:57:02E-mail subtitling@bbc.co.uk
0:57:02 > 0:57:02.