0:00:02 > 0:00:04The UK auction property market
0:00:04 > 0:00:07is worth billions of pounds every year.
0:00:07 > 0:00:09Those are big numbers so don't be put off by that.
0:00:09 > 0:00:13No, the auctions are a level playing field. They're open to everybody.
0:00:13 > 0:00:16All you need is a bit of cash and some confidence.
0:00:41 > 0:00:47With thousands of lots going under the hammer each year, there's such a huge choice at auction.
0:00:47 > 0:00:53So here are what today's bidders decided to buy when they put their hands in the air.
0:00:53 > 0:00:57There's a promising property in Devon for me to investigate.
0:00:57 > 0:00:59All in all, a good size flat.
0:00:59 > 0:01:02You know what? It's ticking a lot of boxes, this place.
0:01:03 > 0:01:09I'm at a former coach house in Kent with some unusual Tudor features.
0:01:09 > 0:01:11Where are you, Up there?
0:01:11 > 0:01:13No, down there?
0:01:13 > 0:01:19And in Birmingham, I visit this terraced house where things are a little on the cramped side.
0:01:19 > 0:01:23That loo, I mean, if you stood up, you'd bang your head.
0:01:23 > 0:01:27All these properties are being sold at auction.
0:01:27 > 0:01:32We find out who bought them and for how much when they went under the hammer.
0:01:35 > 0:01:38I'm in Torquay on the English Riviera
0:01:38 > 0:01:41and what a beautiful spot it is too.
0:01:41 > 0:01:45It's popular with holidaymakers of course, so has a thriving tourist industry.
0:01:45 > 0:01:50# We're all going on a summer holiday
0:01:50 > 0:01:54# No more working for a week or two... #
0:01:54 > 0:01:59So what am I here to see? A holiday let or perhaps a retirement bungalow?
0:01:59 > 0:02:02No, it's a kind of property that I really like,
0:02:02 > 0:02:06it's a mixed-use property which basically means
0:02:06 > 0:02:10you've got a shop downstairs and upstairs, there's a flat.
0:02:10 > 0:02:14I like these because they give lots of opportunity
0:02:14 > 0:02:16and a variety of possibilities.
0:02:17 > 0:02:20So what's in store... Ha ha ha!
0:02:20 > 0:02:23Behind the door, very funny.
0:02:23 > 0:02:25It's actually a shop, or what was a shop at some stage.
0:02:25 > 0:02:30As you can see, all these fittings that would have had all sorts up shoppy type things on them.
0:02:30 > 0:02:34But it's not a bad size space.
0:02:34 > 0:02:37The guide price here was £90,000.
0:02:37 > 0:02:39From the front, you might think it's quite small
0:02:39 > 0:02:43but through the back there are actually two large storage rooms.
0:02:43 > 0:02:46There's also what looks like a workshop of some sort.
0:02:46 > 0:02:48The whole place could do with a spring clean
0:02:48 > 0:02:51and it's not exactly got the biggest yard in the world
0:02:51 > 0:02:54but so far, I am optimistic.
0:02:55 > 0:02:59It's quite interesting, the way that the property is divided because through there
0:02:59 > 0:03:05is the rear of the shop and as you can see it's connected by that sliding door to the flat.
0:03:05 > 0:03:08There's a separate entrance there which is good
0:03:08 > 0:03:10but if you were going to separate these out,
0:03:10 > 0:03:15which I think you should consider, you'd want to block that off to make it two individual units.
0:03:15 > 0:03:18You'd also have to think about creating two individual leases.
0:03:18 > 0:03:21As it is, something's been blocked up there, not very well.
0:03:21 > 0:03:24Let's see what the flat itself is like.
0:03:25 > 0:03:30You could keep this property as it is but if you applied to the council for change of use
0:03:30 > 0:03:36back to all-residential, you could end up with two flats here or if converted, a family home.
0:03:36 > 0:03:39Well, it's clearly in need of a bit of tender loving care.
0:03:39 > 0:03:45A spot of paint and some wallpaper but it's a really nice size, to be fair.
0:03:45 > 0:03:48Kitchen there, units want to be replaced but it's a good size space
0:03:48 > 0:03:53and then this really big sort of landing area, lots of light coming in. I like that.
0:03:53 > 0:03:56And off this, you've got the bathroom. Separate toilet there.
0:03:56 > 0:03:59Two bedrooms so all in all, a good size flat.
0:03:59 > 0:04:02You know what? It's ticking a lot of boxes, this place.
0:04:02 > 0:04:04# You know what they say,
0:04:04 > 0:04:07# They say it's all good
0:04:07 > 0:04:09# All good... #
0:04:09 > 0:04:12As you can tell, I'm really taken with this place.
0:04:12 > 0:04:14There's just so much potential.
0:04:14 > 0:04:18I asked along a local property expert from the auctioneers
0:04:18 > 0:04:23who sold it to tell me what he thinks would be the best use for it.
0:04:23 > 0:04:25# You know what I'm saying
0:04:25 > 0:04:26# It's all good... #
0:04:26 > 0:04:30Obviously anyone looking to develop the property into flats or into
0:04:30 > 0:04:34a residential house has to go down the planning authority route
0:04:34 > 0:04:36as it doesn't have planning permission in place.
0:04:36 > 0:04:39That is pretty easy I'd have thought for this location,
0:04:39 > 0:04:44being that you have houses either side and it's predominantly residential in the area.
0:04:44 > 0:04:46So that's the process somebody would need to go down.
0:04:48 > 0:04:53Would converting the property to fully residential add anything to the value?
0:04:53 > 0:04:57Remember the guide price for this was £90,000.
0:04:57 > 0:05:01If the property was developed into a three-bedroomed mid-terrace house,
0:05:01 > 0:05:06the redevelopment value could be somewhere in the region of probably £150,000.
0:05:06 > 0:05:12If somebody was looking to convert it into two separate one-bedroom units of accommodation, flats,
0:05:12 > 0:05:16they'd probably estimate about £80-85,000 per unit
0:05:16 > 0:05:19so the redevelopment value in total could be pushing 170.
0:05:20 > 0:05:25What if the new owner decided to rent it out?
0:05:25 > 0:05:28If the property is turned into a residential house, that could
0:05:28 > 0:05:32fetch somewhere on the rental market probably £550 per calendar month.
0:05:34 > 0:05:39Well, yes, there is some work needed to sort this place out but it's a very flexible property
0:05:39 > 0:05:42that I'm sure will appeal to a variety of purchasers.
0:05:42 > 0:05:44Let's see who went for it when it went under the hammer.
0:05:44 > 0:05:49So who's going to say to us 80,000 in? 80, it's got to be.
0:05:49 > 0:05:5175, 75, two of you.
0:05:51 > 0:05:55At 75, are you going to... OK, is that all you've brought with you?
0:05:55 > 0:06:0075, OK, I'll concentrate on my right. 80, 82, 84?
0:06:00 > 0:06:0286. 87.
0:06:02 > 0:06:04Ooh, 87.
0:06:04 > 0:06:06Half?
0:06:06 > 0:06:1087 and a half, 87 and a half.
0:06:10 > 0:06:1388, 88 and a half.
0:06:13 > 0:06:1589? 89 and a half.
0:06:15 > 0:06:1790?
0:06:17 > 0:06:19And a half.
0:06:19 > 0:06:20At 90 and a half.
0:06:20 > 0:06:24At 90 and a half. At 90 and a half.
0:06:24 > 0:06:26That's nearly a free flat, possibly. Possibly!
0:06:26 > 0:06:3190 and a half once, at 90 and a half twice.
0:06:31 > 0:06:3690 and a half, all done, second row gets it, at 90 and a half,
0:06:36 > 0:06:38at 90 and a half. Good buy.
0:06:38 > 0:06:45And that successful bid of £90,500 came from Ryan.
0:06:45 > 0:06:48He and his dad Richard are both Torquay residents.
0:06:48 > 0:06:52They run a property developing business Richard's happy to take
0:06:52 > 0:06:57a step back and let his son Ryan manage the building work.
0:06:57 > 0:07:00I caught up with them at the property to find out their plans.
0:07:02 > 0:07:06- Ryan, Richard, good to meet you both.- And you.- Congratulations.
0:07:06 > 0:07:11- Thank you.- Why did you want to buy it.- Basically, it's renovation.
0:07:11 > 0:07:13We do a lot of renovation of properties anyway and
0:07:13 > 0:07:17obviously being Torquay, we're very interested in properties in Torquay.
0:07:17 > 0:07:20And this one here is quite cheap.
0:07:20 > 0:07:26It certainly was, they only paid £500 more than the £90,000 guide price.
0:07:26 > 0:07:32That was probably a relief for Richard who was on holiday whilst Ryan was at the auction.
0:07:32 > 0:07:35- # I need a holiday - I need a holiday
0:07:35 > 0:07:37# I need a holiday with my friends... #
0:07:37 > 0:07:41I'd only flown out the day before and I had a phone call on
0:07:41 > 0:07:45the Thursday afternoon, said "Dad, I've bought a property at auction."
0:07:45 > 0:07:49- The original plan was just to go down there and have a look.- No!- Yes.
0:07:49 > 0:07:55No, we actually came to view the property before it went to auction and put an offer in
0:07:55 > 0:08:00- and the lady preferred to see it go to auction than accept the offer. - Right, OK.
0:08:00 > 0:08:03So did you get it for less or more than you the offer?
0:08:03 > 0:08:08We only paid an extra 2,500 more than what we actually put the offer in for so it wasn't too bad.
0:08:08 > 0:08:12Wasn't too bad. But you decided you were going to buy it then...?
0:08:12 > 0:08:14Well, yes and no!
0:08:14 > 0:08:20We were selling another property in the meantime, and that's still going through at the moment
0:08:20 > 0:08:23so it was a question of just looking, he went down to have a look,
0:08:23 > 0:08:29to have the feel of an auction, to see what it was like. And hence where we are now.
0:08:29 > 0:08:31So you got a bit of auction fever, did you?
0:08:31 > 0:08:35Yes, I did, got a bit carried away as well.
0:08:35 > 0:08:39So at what point did you have to phone your dad?
0:08:39 > 0:08:44Basically after the auction, "I've bought a property, Dad and you're not here to sign nothing.
0:08:44 > 0:08:47"So they're putting it just in my name."
0:08:47 > 0:08:50- "Dad, I've just spent all your money and it's in my name."- Yeah.
0:08:50 > 0:08:53# Oh, no! #
0:08:53 > 0:08:55Luckily Ryan's dad trusts his judgement and
0:08:55 > 0:09:01they're still talking to each other but maybe Richard should go along with Ryan to the next auction.
0:09:01 > 0:09:06# When I'm with you I can't control myself. #
0:09:06 > 0:09:10So what was it about this property that caught Ryan's eye?
0:09:10 > 0:09:13Basically the size of it and with the price of it.
0:09:13 > 0:09:18Anything that's under the 100,000 mark is worth investing in.
0:09:18 > 0:09:20In this area?
0:09:20 > 0:09:21Yes, in the area itself.
0:09:21 > 0:09:27OK. The fact that it's mixed-use, the residential and commercial, was that good or bad in your eyes?
0:09:27 > 0:09:32- I don't think that made any difference because we'd plan to turn it back into residential.- Right.
0:09:32 > 0:09:36I've got an architect coming round to see us in the next couple of days
0:09:36 > 0:09:38and give us some plans and his views.
0:09:38 > 0:09:41So what's the plan with this place then?
0:09:41 > 0:09:45We think at the moment, the plan is to turning it back into a house.
0:09:45 > 0:09:48We think it might be too costly to turn it into two flats.
0:09:48 > 0:09:53On advice tomorrow perhaps of the architect, we might be looking at a different plan.
0:09:53 > 0:09:58- OK.- But we're hoping to get some local opinion from somebody who's really experienced in it.
0:09:58 > 0:10:02Do you have any idea of the budget and what it might cost to do either option?
0:10:02 > 0:10:07If we convert it back into a house, we reckon in the region of about £20,000.
0:10:07 > 0:10:11And if you were to go down the flats route, any ideas at this stage?
0:10:11 > 0:10:14We think from advice from some friends who are in the game,
0:10:14 > 0:10:17they think it would be about £25,000 per flat.
0:10:17 > 0:10:21- And is the idea then to sell it or rent it out?- To sell it.- To sell it.
0:10:21 > 0:10:24- So either way, you're going to sell them on.- Yes.- At the moment
0:10:24 > 0:10:29with the market being the way it is, if it doesn't sell,
0:10:29 > 0:10:32or if it comes down to renting, then that's fine.
0:10:32 > 0:10:38If we decide to go with two flats, depending on the architect and the other people's professional opinion,
0:10:38 > 0:10:41we just basically go with what the flow is really.
0:10:41 > 0:10:45# Let it flow Let it flow
0:10:45 > 0:10:48# Let it flow... #
0:10:48 > 0:10:53It's certainly a good idea to keep your options open just in case.
0:10:53 > 0:10:56No matter what happens, there's lots of work to do here
0:10:56 > 0:11:00but luckily Ryan's a trained plumber and heating engineer.
0:11:00 > 0:11:02I do a lot of the work myself.
0:11:02 > 0:11:06With the labouring, Dad does the labouring, you know, ripping and guttering
0:11:06 > 0:11:11and then the plumbing side, I deal with all the plumbing and the heating side of it and then
0:11:11 > 0:11:15we get a couple of friends, and a few relatives to get involved as well.
0:11:15 > 0:11:18- Even my Nan helps out now and again! - Oh, great.
0:11:18 > 0:11:23But yes, we basically keep it in a group of friends, just come in and renovate the property.
0:11:25 > 0:11:30Richard's more than happy for his son Ryan to project manage here and who wouldn't be?
0:11:30 > 0:11:34At only 24, Ryan seems to have everything under control.
0:11:34 > 0:11:38Do you see yourself being involved in this long-term, Ryan?
0:11:38 > 0:11:41Yes. Even though I'm a plumbing and heating engineer,
0:11:41 > 0:11:46I needed a trade behind me but I've always had the ambition of being a property developer.
0:11:46 > 0:11:48Being my fourth house now, I'm actually starting to
0:11:48 > 0:11:51get the gist and I'm enjoying it a lot more than what I do plumbing.
0:11:51 > 0:11:55Right, you're doing pretty well for 24, you've four houses behind you
0:11:55 > 0:11:58- and the heating and engineering qualification.- Yes.- Great.
0:11:58 > 0:12:01- Congratulations, good luck. - Thank you very much.
0:12:01 > 0:12:04I look forward to seeing how you get on, which way you decide to go.
0:12:04 > 0:12:08I think Ryan and Richard have done very well here.
0:12:08 > 0:12:10Or Ryan has while his dad was away on holiday!
0:12:10 > 0:12:13What will they do with this place though?
0:12:13 > 0:12:15It really comes down to the numbers.
0:12:15 > 0:12:18Look at those and decide, should it be a house, should it be flats?
0:12:18 > 0:12:20Make your decision based on that.
0:12:20 > 0:12:23What will they do? You can find out later in the show.
0:12:27 > 0:12:33I'm in Kent in the pretty little village of Milton Regis, just outside Sittingbourne.
0:12:33 > 0:12:38There are many quaint old properties here and plenty of local amenities on the high street.
0:12:38 > 0:12:41Lots to put a smile on a purchaser's face.
0:12:41 > 0:12:45Now, the auction lot, well, it used to be an old coach house
0:12:45 > 0:12:48before it was converted into a two-bedroom property.
0:12:48 > 0:12:54I can't wait to get inside and see if there are period features that are still intact.
0:12:54 > 0:12:58The guide price, well, £60-65,000.
0:12:58 > 0:13:02I think that's a modest sum for a period property like this
0:13:02 > 0:13:06because that's not mock Tudor, it's real Tudor.
0:13:08 > 0:13:12So straight into the downstairs sitting area, I suppose.
0:13:12 > 0:13:17Quite a big room, a little bit disappointing, I did expect it to be
0:13:17 > 0:13:21packed full of features and I can just see a little beam across the door.
0:13:21 > 0:13:28Very nice windows though, lovely and characterful and of course let's not forget this amazing parquet floor.
0:13:28 > 0:13:34This is sensational, I love it and once sanded back, could come up a real treat.
0:13:34 > 0:13:37The interesting thing about this room is that it's a very odd shape.
0:13:37 > 0:13:41It kind of zig-zags off in all different corners so I wouldn't
0:13:41 > 0:13:43quite know where to place the furniture.
0:13:43 > 0:13:46This would really need to be well thought out
0:13:46 > 0:13:48and the kitchen, well,
0:13:48 > 0:13:50interesting use of space for the boiler,
0:13:50 > 0:13:52it looks like somebody's just put it on the side there.
0:13:52 > 0:13:58The kitchen needs a whole refurb, some money needs spending on it. It all needs to be rearranged.
0:13:58 > 0:14:01This property needs a little bit of thinking about.
0:14:03 > 0:14:06This place has certainly got a quirky layout.
0:14:06 > 0:14:12I would maybe think about opening this out into one big kitchen, dining room and lounge.
0:14:12 > 0:14:15Upstairs it all looks fresh and still pretty modern but it's
0:14:15 > 0:14:19up on this floor that I finally find some original Tudor features.
0:14:19 > 0:14:23I just wasn't expecting to find them right in the middle of the landing!
0:14:23 > 0:14:27# Smack dab in the middle
0:14:27 > 0:14:30# Smack dab in the middle
0:14:30 > 0:14:32# Smack dab in the
0:14:32 > 0:14:33# Smack dab in the middle... #
0:14:33 > 0:14:35At last this is... Oh, where are you?
0:14:35 > 0:14:38Up there? No, down there?
0:14:38 > 0:14:40Well, this is where we find the features.
0:14:40 > 0:14:44Now I can imagine what this must have been like as a coach house.
0:14:44 > 0:14:48It's a lot more interesting upstairs, there's loads of exposed brickwork here.
0:14:48 > 0:14:51It's really quite quirky, I like it.
0:14:51 > 0:14:54I'm going to have a look in one of the bedrooms.
0:14:54 > 0:14:57You can really imagine what this place was like in the Tudor times.
0:14:57 > 0:15:01There's so many creaky floorboards. But this beam is supertastic!
0:15:01 > 0:15:07It goes right the way through the house and it is what you call a big, large, chunky beam.
0:15:07 > 0:15:10It's is a wonderful property, and even though it's a period house,
0:15:10 > 0:15:14they're usually small, this does offer quite a bit of space.
0:15:14 > 0:15:16This is not a bad sized double bedroom.
0:15:16 > 0:15:22In fact, the top part of the house is a lot more spacious than the downstairs. But I really do like it.
0:15:22 > 0:15:26It's got a very nice, welcoming feeling up here.
0:15:26 > 0:15:30It's really cosy up here, and the great thing is it doesn't need much
0:15:30 > 0:15:34renovation work, just a lick of paint and some new carpets, maybe.
0:15:34 > 0:15:39That's just as well, because there are restrictions on what you can do to this building.
0:15:41 > 0:15:44Now, I haven't told you that this house is Grade II listed
0:15:44 > 0:15:50and is in a conservation area, so this will restrict you if you want to change the exterior in any way.
0:15:50 > 0:15:54So new windows, for instance, will require permission from the listed office
0:15:54 > 0:15:59as well as the conservation officer, and there is no guarantee you will obtain that permission.
0:15:59 > 0:16:02They are lovely windows,
0:16:02 > 0:16:07but that road out there is quite noisy, and that would concern me.
0:16:07 > 0:16:11# The cars hiss by my window
0:16:11 > 0:16:15# Like the waves down on the beach... #
0:16:15 > 0:16:20They are lovely old windows, but double-glazing would
0:16:20 > 0:16:22make it much more appealing to buyers and tenants.
0:16:22 > 0:16:26If you can get permission, of course, but that could be tricky.
0:16:29 > 0:16:31But now, for some good news.
0:16:31 > 0:16:35This property is on the high street, so parking can sometimes be very difficult to find.
0:16:35 > 0:16:41Well, you don't have to worry about trying to find a spot out there because, look, this auction lot has
0:16:41 > 0:16:46its own private parking. You see, I think this is a real selling point.
0:16:48 > 0:16:51And that private parking is even better when you discover
0:16:51 > 0:16:54that the road at the front is covered in yellow lines.
0:17:00 > 0:17:04So, what does a local expert make of this period property?
0:17:04 > 0:17:08I invited one along to tell me.
0:17:10 > 0:17:12Overall, the property is not in bad condition.
0:17:12 > 0:17:15It'll need some decorating, but not too much.
0:17:15 > 0:17:18Maybe a kitchen and bathroom, but overall it's not too bad.
0:17:18 > 0:17:22I think the main features here are there's a little bit of character.
0:17:22 > 0:17:25It has two good-sized bedrooms and there's off-street parking.
0:17:25 > 0:17:28There's one downside to this property though.
0:17:28 > 0:17:32Its leasehold, and there are only 69 years left on the current lease.
0:17:32 > 0:17:35Could that be a problem?
0:17:35 > 0:17:38It is going to be an issue for a new owner-occupier.
0:17:38 > 0:17:41But if it's going to be an investor buying this,
0:17:41 > 0:17:45it's not going to be so much of an issue in the short term,
0:17:45 > 0:17:48but at some stage they will want to extend the lease.
0:17:48 > 0:17:52Extending the lease can be a costly business, but that shorter lease
0:17:52 > 0:17:57does explain the rather low guide price of 60 to £65,000.
0:17:57 > 0:18:01Once done up, what could it sell for?
0:18:01 > 0:18:05You might expect to be putting this on the market between 95 and £100,000.
0:18:06 > 0:18:11What if the new owner decided to rent it out?
0:18:11 > 0:18:15I would expect to achieve somewhere around £525 per month.
0:18:15 > 0:18:22It's a lovely characterful property and it doesn't require too much work, but if you did want to make
0:18:22 > 0:18:28any structural changes, you would need to obtain permissions, as it's listed and in a conservation area.
0:18:28 > 0:18:33Now, that 69-year lease may also put some buyers off. It didn't deter someone though.
0:18:33 > 0:18:37Let's find out who that was as we go to auction.
0:18:37 > 0:18:3955 then.
0:18:39 > 0:18:42I don't mind where we start. 55, thank you very much.
0:18:42 > 0:18:47£55,000 I am bid. At 55, 57, 60 now.
0:18:47 > 0:18:5157, I have on my left. At £57,000 I am bid. 60 do I see?
0:18:51 > 0:18:5460 I have. And 61?
0:18:54 > 0:18:59That's 60,000, that gentleman's bid is sitting at 60,000. 61 anywhere?
0:18:59 > 0:19:05And £60,000, it's being sold at £60,000. One do I see?
0:19:05 > 0:19:11For the first time at £60,000, for the second time at 60,000, the bid is on my right.
0:19:11 > 0:19:16At £60,000, the third and final time at 60,000. Are you all done?
0:19:16 > 0:19:19Sold at 60,000. Thank you.
0:19:19 > 0:19:23That successful bid of £60,000 came from Daniel and Paul.
0:19:23 > 0:19:28Daniel will be project managing on behalf of his stepfather Paul who's financing it.
0:19:28 > 0:19:31This is Daniel's first go at property developing,
0:19:31 > 0:19:36so I couldn't wait to find out his plans for this Tudor treasure.
0:19:38 > 0:19:42Daniel, congratulations. Why did you want to buy this property?
0:19:42 > 0:19:47It's a quirky little place, it's got a bit of character to it, and I thought it make someone a nice home.
0:19:47 > 0:19:51Yeah, it's a nice building and a bit of history behind as well, so, yeah.
0:19:51 > 0:19:58Its quirkiness. You've got this ziggedy-zaggedy floor and with the parquet laying that way.
0:19:58 > 0:20:02Yes, it makes you a bit seasick as you walk in.
0:20:02 > 0:20:07It's all over the place, but again that gives it its character and it makes you remember it.
0:20:07 > 0:20:12It's nice little features and bits like that that make it the place that it is, to be honest with you.
0:20:12 > 0:20:15You fit kitchens, what are you going to do to that kitchen?
0:20:15 > 0:20:21Because at the moment, it did make me laugh, the boiler literally just having to rest on the worktop.
0:20:21 > 0:20:24Yes, it's not ideal, but we are going to keep that where it is
0:20:24 > 0:20:28because we don't want to extend the flue, so we'll box that in.
0:20:28 > 0:20:35Just make it nice and light and make use of the space that's there, because it's a small kitchen.
0:20:35 > 0:20:40Just try and open it up but at the same time give it as much space and storage as you can for someone.
0:20:40 > 0:20:43- Are you happy with the price you paid?- Very happy. Very happy.
0:20:43 > 0:20:47We was prepared to pay a bit more, so we bought it at a good price.
0:20:47 > 0:20:50We're very happy with it. It gives us the scope for a bit more profit
0:20:50 > 0:20:53and maybe do a bit more than what we originally thought.
0:20:55 > 0:20:58Daniel's ten years' experience as a bathroom and kitchen fitter
0:20:58 > 0:21:02are certainly going to be very handy for the renovation work.
0:21:03 > 0:21:09So, this really is the perfect, perfect job for you to come in here and really give it a facelift.
0:21:09 > 0:21:14Yes, that's the idea, cos it's a listed building there are certain things you can't do,
0:21:14 > 0:21:19so we're just going to bring up the floor, sand it down and make the best of the features it's got.
0:21:19 > 0:21:22A new kitchen, possibly a new bathroom. We will look at that.
0:21:22 > 0:21:26Modernisation, but also keeping the things that make it the house
0:21:26 > 0:21:29that it is and give it its character and quirkiness.
0:21:29 > 0:21:31What about these windows? Beautiful windows.
0:21:31 > 0:21:35Yes, nice sash windows, and they need a bit of work, re-weighting,
0:21:35 > 0:21:39but we're just going to sand them down, paint them up and give them a fresh look.
0:21:39 > 0:21:42You can't change the windows cos it's a listed building.
0:21:42 > 0:21:45There are certain things we're going to keep, some we'll change,
0:21:45 > 0:21:49but on the whole, the outside has to stay the same.
0:21:50 > 0:21:54It's music to my ears that Daniel's going to be faithful to the character of the house.
0:21:54 > 0:21:58What kind of budget has he got in mind for the work he's going to do?
0:22:00 > 0:22:01We've got £10,000
0:22:01 > 0:22:05with a £3,000 contingency, but I'm quite pleased
0:22:05 > 0:22:09- with that. I don't think that will be a problem. I think that's doable. - So do you think for £10,000
0:22:09 > 0:22:12- you can give this a facelift? - I can give it a facelift.
0:22:12 > 0:22:15Bear in mind we'll keep the windows and things like that.
0:22:15 > 0:22:19Yeah, I think it's doable. I've got my fingers crossed, anyway.
0:22:19 > 0:22:21How long do you think it's going to take?
0:22:21 > 0:22:25- Three weeks.- Three weeks?! £10,000 in three weeks.
0:22:25 > 0:22:26Oh, you're so optimistic.
0:22:26 > 0:22:29Yes, I am optimistic, hard-working and optimistic.
0:22:29 > 0:22:31- Are you hard-working?- Very.
0:22:31 > 0:22:35Well, Daniel's certainly got the right attitude for property developing.
0:22:35 > 0:22:39As with all projects, though, you never know what problems could be lying in wait,
0:22:39 > 0:22:43so it's best to have an optimistic attitude.
0:22:43 > 0:22:47Meanwhile, will he be getting that 69-year lease extended?
0:22:47 > 0:22:53Now you have to own the property for two years before you can even think about extending the lease.
0:22:53 > 0:22:57- Is that something you'll do? Is this a long-term project?- It definitely is. We'll be renting it out,
0:22:57 > 0:23:02so it's a long-term thing and we'll be looking at in a couple of years' time to see if it is viable
0:23:02 > 0:23:05and how much it will cost and things like that.
0:23:05 > 0:23:10But 69 years, I think, is long enough to make your money back and a profit, hopefully.
0:23:10 > 0:23:14Although it was a consideration, it didn't really put us off to be honest.
0:23:14 > 0:23:17Maybe it put other people off, I don't know.
0:23:17 > 0:23:20- Well, Daniel, I can't wait to see the outcome.- I know, I'm excited.
0:23:20 > 0:23:22- Good luck.- See you soon.- Thank you. - Cheers.
0:23:24 > 0:23:27Will £10,000 be enough to renovate this house,
0:23:27 > 0:23:32or will Daniel have to dig into his three grand contingency fund?
0:23:32 > 0:23:36You can find out how he gets on with this listed lovely later on in the programme.
0:23:37 > 0:23:40Coming up, I'm hard at work at this house in Birmingham.
0:23:40 > 0:23:44Well, there are few more practical uses potentially for the garden
0:23:44 > 0:23:46other than making snowmen, not that that's not important.
0:23:46 > 0:23:52In Kent, has a flood ruined the renovation of this two-bedroom property?
0:23:52 > 0:23:55As I've walked through the building, I looked, and my face just dropped.
0:23:55 > 0:23:57It was... I was absolutely gutted.
0:23:59 > 0:24:02But first, is the future bright down in Devon?
0:24:02 > 0:24:07I aim to retire hopefully in 15 years, but we'll have to see how many properties I can get through.
0:24:09 > 0:24:17Now it's back to Devon, where this mid-terrace two-storey property in Torquay sold at auction for £90,500.
0:24:17 > 0:24:23On the ground floor it was an old shop, but upstairs there was living accommodation.
0:24:23 > 0:24:28But its new owners, father and son, Ryan and Richard, had other plans.
0:24:28 > 0:24:30We plan to turn it back into residential.
0:24:30 > 0:24:35- Right.- I've got an architect coming round to see us in the next couple of days.
0:24:35 > 0:24:38He will give us some plans and his views.
0:24:38 > 0:24:41# Yeah, I'm gonna change everything
0:24:41 > 0:24:44# That holds a memory of you... #
0:24:44 > 0:24:48And seven months later, as you can tell from the work at the front,
0:24:48 > 0:24:52they have succeeded in getting a change of use from the council.
0:24:52 > 0:24:55Ryan and Richard showed us what they've been up to.
0:24:55 > 0:25:01# I'm gonna start with the walls take the pictures off the walls and burn them
0:25:03 > 0:25:08# Move the chairs around Take the window curtains down and burn them
0:25:11 > 0:25:15# Everything I see reminds me you were here
0:25:15 > 0:25:24# Yeah I'm gonna change everything that holds a memory of you... #
0:25:24 > 0:25:28We discussed between ourselves when we first bought the property
0:25:28 > 0:25:33whether it would be better off as two flats, or best as one property.
0:25:33 > 0:25:38With the market being over-populated with flats, it's better off being one house.
0:25:38 > 0:25:43We've raised the level of the front because it was a split level, and obviously we've had to take
0:25:43 > 0:25:48the shop front down and put it back in place like the houses either side of us.
0:25:48 > 0:25:52So it will look continuous along the street.
0:25:52 > 0:25:54Just going back to residential use.
0:25:54 > 0:25:57We kept it as one room, rather than having two reception rooms,
0:25:57 > 0:26:01because it would benefit the light from one end to the other end.
0:26:01 > 0:26:08As you can see, they still have to finish the new bay window, but what a great living space Ryan's created.
0:26:08 > 0:26:14Even more impressive is the work is completed in that old workshop through the back.
0:26:17 > 0:26:24Upstairs, the layout has stayed the same, but the rooms have been completely re-plastered and painted.
0:26:24 > 0:26:25There's new central heating
0:26:25 > 0:26:29and now the kitchen is downstairs, they've changed the old one
0:26:29 > 0:26:32into a master bedroom, complete with en suite.
0:26:32 > 0:26:38# ..Yeah I'm gonna change everything that holds a memory of you. #
0:26:38 > 0:26:45OK, what we did, we actually moved the door for the old toilet and put an en suite in here
0:26:45 > 0:26:51and put a new shower and a basin in to make it a nice little en suite for the master bedroom.
0:26:51 > 0:26:56The old bathroom has been gutted, and a swish new suite put in its place.
0:26:56 > 0:27:03Ryan's a plumber and heating engineer, which obviously came in handy when fitting a new bathroom.
0:27:03 > 0:27:07He even saved a few pennies on that bath.
0:27:07 > 0:27:11Ryan quite surprised me. He came and said, "Dad, I've got a good deal.
0:27:11 > 0:27:14"I've got a Jacuzzi bath for £50."
0:27:14 > 0:27:19And so now we've got a Jacuzzi bath in the bathroom, which is quite something.
0:27:19 > 0:27:25Well, that's all I can say. It does really set it off as a nice standard and a nice feature.
0:27:25 > 0:27:29# This is where my heart keeps singing
0:27:30 > 0:27:35# Bubaloo bubaloo bubaloo... #
0:27:35 > 0:27:40Ryan's done the majority of the work himself, learning a few new skills along the way.
0:27:40 > 0:27:46Their plans didn't stop on the inside though, as they've started work out the back too.
0:27:46 > 0:27:50# ..Take a look away out yonder. #
0:27:50 > 0:27:54Well, as you can see, we've put new French doors on here.
0:27:54 > 0:27:58We've also put a new back door on, replacement windows,
0:27:58 > 0:28:02and the old lean-to here which was full of damp, we've taken it down.
0:28:02 > 0:28:05We've got an outside area here, which we're going to improve.
0:28:05 > 0:28:10Out the back we going to put a washing area and also lower
0:28:10 > 0:28:14one of the walls down at the back and put a balustrade round where you can sit in the afternoon.
0:28:14 > 0:28:19The plan for the property is for me to move in whilst we try and sell it.
0:28:19 > 0:28:21It will be going on the market.
0:28:21 > 0:28:26Hopefully the valuation is what we expect it to be, it will go on the market.
0:28:26 > 0:28:30If not, we will possibly rent it and look for another property to do.
0:28:30 > 0:28:33What kind of figure can they hope to achieve
0:28:33 > 0:28:37when they do put it on the market? We asked two local experts
0:28:37 > 0:28:38to tell us what they think
0:28:38 > 0:28:42it'll be worth and what their thoughts are on the work so far.
0:28:45 > 0:28:48I think the layout is fantastic.
0:28:48 > 0:28:53It's really good-sized accommodation for a family, lots of space.
0:28:53 > 0:28:56It's accommodating for families, young couples starting out.
0:28:56 > 0:29:00A wonderful size kitchen-breakfast room on the ground floor
0:29:00 > 0:29:04and all the rooms actually are very spacious and a good size.
0:29:04 > 0:29:10The bathroom is nice and bright and spacious. Always nice and pleasant with a white suite.
0:29:10 > 0:29:14Everything else is really fresh-looking.
0:29:14 > 0:29:17The kitchen is always the selling point of a house, or so they say,
0:29:17 > 0:29:19and it is a wow factor when you walk through the door.
0:29:19 > 0:29:21They've all the utilities
0:29:21 > 0:29:25and facilities you expect to find in a modern kitchen and it really is very pleasant.
0:29:25 > 0:29:32They bought the property for £90,500 and have spent 20 grand on the renovation.
0:29:32 > 0:29:38That means a total outlay here of just over 110,000, so what could it resell for?
0:29:39 > 0:29:44If the owners continue to refurbish this property to a high standard, which they've done so far,
0:29:44 > 0:29:49then I'd expect them to put it on the market for somewhere in the region of 169,950,
0:29:49 > 0:29:52but maybe looking to achieve somewhere closer to £160,000.
0:29:52 > 0:30:00I believe when the property is completed, the resale value would be between sort of 160 and £170,000.
0:30:00 > 0:30:06That's very good. That's a little bit more than what we expected, I think, and, yes, if we get that,
0:30:06 > 0:30:10we will be delighted. And, yes, we'll move on to something else quickly
0:30:10 > 0:30:13and hopefully we can get the same profit off of the next one.
0:30:14 > 0:30:16Fantastic news. I'm over the moon with it.
0:30:16 > 0:30:19Just shows my work eventually does pay off.
0:30:20 > 0:30:24Of course, if they find the market slow and they don't get much interest
0:30:24 > 0:30:27in the house, they may look to rent it out instead.
0:30:27 > 0:30:29So what rent could they charge?
0:30:29 > 0:30:32On the rental market,
0:30:32 > 0:30:38I would expect this property to achieve somewhere between 550 and £575 per calendar month.
0:30:38 > 0:30:46I think a good rental value would be between 600 and £650 per calendar month.
0:30:46 > 0:30:51I think their rentals are way out on that score because we've got a place at the moment
0:30:51 > 0:30:54which is smaller than this and we're getting more than the top rental.
0:30:54 > 0:30:59Some areas of Torquay, two-bedroom houses are getting 600, £620 a month.
0:30:59 > 0:31:03So I would think their rentals are a little bit out on that score.
0:31:03 > 0:31:09I was actually aiming... Well, I was told that possibly we'd get about 700 for this one.
0:31:09 > 0:31:16If they did achieve that £700 a month, that would mean a healthy yield of 7.5%.
0:31:16 > 0:31:20So far, Ryan and his dad have only developed a few properties together
0:31:20 > 0:31:25but they obviously make a strong team, so are they planning more ventures in the future?
0:31:25 > 0:31:33# So we've got a good thing going A real good thing going, yes... #
0:31:33 > 0:31:37Yes, I'd like to see us go forward. I mean, I don't know how far we want to go forward but obviously
0:31:37 > 0:31:42I'm looking to my retirement in years to come and obviously Ryan's looking to his future.
0:31:42 > 0:31:48I mean, the more properties that we've got, the less work or full-time work Ryan'll have to do
0:31:48 > 0:31:52at the end of the day, and as I say, if you can make your life easier at the end of the day,
0:31:52 > 0:31:54then that's got to be the way forward.
0:31:54 > 0:31:58I aim to retire, hopefully, in 15 years' time, but we'd have to see
0:31:58 > 0:31:59how many properties I can get through!
0:31:59 > 0:32:06Well, 15 years might be a little optimistic but something tells me Ryan's going to make a great success
0:32:06 > 0:32:08of his new property-developing career.
0:32:13 > 0:32:18I'm in Harborne, a suburb of Birmingham, well-known for its green spaces, although today,
0:32:18 > 0:32:21they're hidden beneath a blanket of snow.
0:32:21 > 0:32:26# Let it snow, let it snow, let it snow... #
0:32:26 > 0:32:30Well before I even get to the property, I'm really excited about this location,
0:32:30 > 0:32:36because just behind me is the brand new Queen Elizabeth Hospital, which means that any property round here
0:32:36 > 0:32:41is going to be a purler when it comes to potential rental. So what have we got?
0:32:41 > 0:32:46Well, it's a two bedroomed end-terrace at a guide price of 125 to 135,000 quid.
0:32:46 > 0:32:50Doesn't look too bad from the outside if you can see beside all the snow.
0:32:50 > 0:32:53Let's take a look inside.
0:32:53 > 0:32:58This property is only three miles from the city centre and Birmingham University is right on the doorstep,
0:32:58 > 0:33:03so there's tremendous rental potential here for students or staff from the nearby hospital.
0:33:03 > 0:33:13# Everybody needs some kind of medicine sometime... #
0:33:14 > 0:33:15So what's it like inside?
0:33:15 > 0:33:20Well, straight through the front door into the lounge, which is going to give you a bit of a cold issue,
0:33:20 > 0:33:22especially on a day like today.
0:33:22 > 0:33:27But it's not a bad size space. Gas fire - get that checked out, and I'd like to see a real fire put in there
0:33:27 > 0:33:31to give focus to the room. But, it's good to see it has double glazing. Through to the rear...
0:33:31 > 0:33:34Whoa! What is that?!
0:33:35 > 0:33:40OK, it's a cloakroom, but that loo, I mean, if you stood up...
0:33:40 > 0:33:43You'd bang your head! Um, I don't know what you could do about that.
0:33:43 > 0:33:49I mean, it's useful to have what is, I presume, a second loo, but not an ideal location at all.
0:33:49 > 0:33:53Through to the rear of the property, where you've got the kitchen. It's not huge.
0:33:53 > 0:33:58And actually, apart from that little unit there, no units to speak of, so money to be spent here,
0:33:58 > 0:34:02but of course, that's a great thing to do because money spent on the kitchen
0:34:02 > 0:34:05is always going to get you money back when it comes to sell.
0:34:05 > 0:34:11It may need a new kitchen, but on the plus side, the house already has gas-fired central heating.
0:34:11 > 0:34:15Though it's always worth having that checked out by an expert.
0:34:15 > 0:34:17Another bonus is up in the attic conversion,
0:34:17 > 0:34:20where the previous owner has managed to fit in a second bedroom.
0:34:20 > 0:34:24Already great news that somebody's gone to the time,
0:34:24 > 0:34:29trouble and expense of converting the attic into the second bedroom.
0:34:29 > 0:34:35Actually, a really nice job they've done of it too, so down here, you've got the other bedroom, and then,
0:34:35 > 0:34:39the ability to have a good size bathroom. Now, this is a bit disappointing, I have to say.
0:34:39 > 0:34:41It clearly is in need of total refurbishment.
0:34:41 > 0:34:44Get rid of this suite, put a white suite in there.
0:34:44 > 0:34:46It's a big space, maybe disproportionately big,
0:34:46 > 0:34:52but whether or not you actually reconfigure this into the bedroom, I don't think so.
0:34:52 > 0:34:56Leave it as it is, tart it up and then you've got a really nice family bathroom.
0:34:56 > 0:35:00A family bathroom perhaps, but there's not much of a family garden out the back.
0:35:00 > 0:35:02Just a little courtyard.
0:35:02 > 0:35:06It's big enough for a table and chairs but not ideal for small children to play in.
0:35:06 > 0:35:12- However, at the front... - # ..Let it snow, let it snow,
0:35:12 > 0:35:14- # Let it snow. #- Ooh!
0:35:16 > 0:35:21Well, there are a few more practical uses potentially for the garden other than making snowmen.
0:35:21 > 0:35:23Not that that's not important!
0:35:23 > 0:35:27But I reckon what's really missing round here is parking.
0:35:27 > 0:35:30There's no off-street parking so maybe lower the kerb here.
0:35:30 > 0:35:34You'd have to have a word with the council about that. They'd have to come and do it.
0:35:34 > 0:35:38Dig out the garden and then you've got that much-improved facility, which would add
0:35:38 > 0:35:42a lot of value to the house and not actually cost you very much.
0:35:43 > 0:35:48Remember, the guide price for this property was 125 to £135,000,
0:35:48 > 0:35:52and I think it's pretty much guaranteed a great rental income.
0:35:52 > 0:35:55But what does a local property expert think?
0:35:55 > 0:35:58I asked one along to take a look.
0:36:04 > 0:36:07What I like most about it is, really, the location.
0:36:07 > 0:36:11It's a pretty little house, small, but the location's fantastic.
0:36:11 > 0:36:15It just needs a new kitchen, a new bathroom, new decorations.
0:36:15 > 0:36:18Floor coverings are pretty grim so they'd need changing.
0:36:18 > 0:36:22I think you could spend £5,000 to get this to a rentable standard.
0:36:23 > 0:36:28Once that work was done, how much could it earn on the rental market?
0:36:28 > 0:36:34Rental value for this, depending on how the refurbishment goes, I would think 550 to £600 a calendar month.
0:36:34 > 0:36:39What if the buyer of this property wants to resell?
0:36:39 > 0:36:46Depending on the standard of refurbishment, resale value, 165 to £170,000.
0:36:48 > 0:36:52So, are the prospects for this place as bleak as the weather?
0:36:52 > 0:36:53You know what? I don't think so.
0:36:53 > 0:36:57Great location, just a snowball's throw away from the hospital.
0:36:57 > 0:37:01Doesn't need too much work and a bit of TLC in that place will really make a big difference.
0:37:01 > 0:37:04Let's see who fancied it when it went under the hammer.
0:37:04 > 0:37:07This auction lot was near the end of the day,
0:37:07 > 0:37:09which explains the empty seats.
0:37:10 > 0:37:12Who will bid me? Where shall we start?
0:37:12 > 0:37:14125, then, to get it started.
0:37:14 > 0:37:16At 125, then.
0:37:16 > 0:37:19125, I have right dead in line with me.
0:37:19 > 0:37:22Is that 130, sir? At 130, and thank you.
0:37:22 > 0:37:26At 130, I'm bid. Is it 135 now? Are you going to come back to me at 135?
0:37:26 > 0:37:29Wow, sir, you're going to give up after one bid. My goodness!
0:37:29 > 0:37:30Are we all done, then?
0:37:30 > 0:37:33The good news for you is I'm going to put this on sale
0:37:33 > 0:37:38for the incredible price of £130,000 for the first time.
0:37:38 > 0:37:39Are we all done?
0:37:39 > 0:37:46At £130,000 for the second time, this is going to go, make no mistake.
0:37:46 > 0:37:52At £130,000 for the third and last time, are we all done?
0:37:53 > 0:37:55That's yours, sir.
0:37:55 > 0:37:58- Congratulations.- Despite the auctioneer's best efforts,
0:37:58 > 0:38:05the house sold on just the second bid of £130,000, to Robert.
0:38:06 > 0:38:12He's an interior designer, architect, property developer and a tree surgeon.
0:38:12 > 0:38:18But in weather like this, I certainly wouldn't want to be climbing on any branches!
0:38:18 > 0:38:25# We came down from the trees... #
0:38:27 > 0:38:31I caught up with him back at his latest buy, to find out his plans.
0:38:35 > 0:38:40- Robert, congratulations. Nice to meet you.- And you, thank you.- Why did you want to buy the house?
0:38:40 > 0:38:45- Basically to turn a shilling.- Right. - Simple as that.
0:38:45 > 0:38:51I enjoy, you know, property refurbishment, so looked like a good one to do.
0:38:51 > 0:38:54So, what sort of experience have you had in properties in the past?
0:38:54 > 0:38:58I've designed all sorts, from educational buildings through to healthcare.
0:38:58 > 0:39:01- Oh, wow.- Done a bit of domestic but not really my forte.
0:39:01 > 0:39:06More commercial and healthcare, I guess. And interiors.
0:39:06 > 0:39:11I've done lots of health centres, clinics, totally redesigned them, that sort of thing.
0:39:11 > 0:39:14- So this is going to be a piece of cake?- Well, relatively, yeah.
0:39:14 > 0:39:18Except it's me doing the work. I'm the contractor, I'm the architect, I'm the builder.
0:39:18 > 0:39:21So, yeah, yeah, it should go smoothly.
0:39:21 > 0:39:24So what are you going to do to it, then?
0:39:24 > 0:39:31Basically, kitchen, guest cloaks, bathroom, rewire, drop a drive in.
0:39:31 > 0:39:35There's one or two settlement cracks but nothing structural, really.
0:39:35 > 0:39:38So, how long is it going to take you to do the work?
0:39:38 > 0:39:44Five months, circa five months, plus or minus maybe a few weeks either side.
0:39:44 > 0:39:46And you doing what?
0:39:47 > 0:39:51Fitting the kitchen, fitting the bathroom, er, dropping the drive in.
0:39:51 > 0:39:53- All on your own?- Pretty well, yeah.
0:39:53 > 0:39:56I've got a mate that's better at plumbing than me.
0:39:56 > 0:39:59I'm better at joinery.
0:39:59 > 0:40:04So, you know, he's in buy-to-lets, um, so we help each other.
0:40:04 > 0:40:09He'll certainly save on costs by tackling the majority of the work himself.
0:40:09 > 0:40:15He's budgeted around £12,000 for all the renovation, including redecorating.
0:40:15 > 0:40:18There's no major structural work necessary, which was one of the draws for Robert.
0:40:18 > 0:40:22But its location was an even bigger one.
0:40:22 > 0:40:24You've got a university on the doorstep,
0:40:24 > 0:40:28you've got a major acute hospital on the doorstep.
0:40:28 > 0:40:33There's letting opportunities and also, you know, sale.
0:40:33 > 0:40:36Great area, probably one of the best areas in Birmingham.
0:40:36 > 0:40:39So it's win-win, really.
0:40:39 > 0:40:46# It's just the nearness of you... #
0:40:46 > 0:40:50So, it's in an ideal position and there's not too much renovation required.
0:40:50 > 0:40:53But it could easily have been so different.
0:40:53 > 0:40:58Despite all Robert's experience, he broke one golden rule of buying at auction.
0:40:58 > 0:41:03He didn't read the legal pack before purchasing the property.
0:41:03 > 0:41:05So is this a course of action that you'd advise?
0:41:05 > 0:41:08No, definitely, definitely not.
0:41:08 > 0:41:12No, no, do as much research as you possibly can.
0:41:12 > 0:41:16View the property two or three times because there's things that you'll see that,
0:41:16 > 0:41:22you know, you'll find as you successfully look again, that you've missed in the first place.
0:41:22 > 0:41:30Luckily, I did a good recce outside and the interior didn't throw up any horrors for me. So...
0:41:30 > 0:41:35- But in terms of the legal pack? - Yeah, yeah, quite. I won't do that again.
0:41:35 > 0:41:42Although there are no contentious issues with the property itself, he hasn't quite got away with it
0:41:42 > 0:41:47because he's uncovered a potentially massive problem nearby.
0:41:47 > 0:41:52- There's something I've got to follow up with the Highways Department of the council.- Why?- I don't know.
0:41:52 > 0:41:57- I mean, I've checked out, there are road-widening.- Ah!- There's road-widening going on
0:41:57 > 0:41:58parallel over Bristol Road.
0:41:58 > 0:42:02- Is that not quite serious? - It's only 15 million quid's worth, but that's the other side.
0:42:02 > 0:42:06- This side, I think we'll be OK. - Think?- Think, yeah.
0:42:06 > 0:42:08Yeah. So I did take a bit of a flyer.
0:42:08 > 0:42:13# The long and winding road
0:42:13 > 0:42:21# That leads to your door... #
0:42:21 > 0:42:27Well, let's hope not literally, and that he doesn't end up with a bit of a flyover in his garden.
0:42:27 > 0:42:30- Well, good luck with it all. Congratulations.- Thanks.
0:42:30 > 0:42:35- And we look forward to seeing how you get on.- Yeah, catch me in about four or five months, eh?
0:42:35 > 0:42:40Well, Robert taking a real risk buying this place without reading the legal pack.
0:42:40 > 0:42:43Certainly something not to be recommended.
0:42:43 > 0:42:47How will he get on? Well, as long as they don't expand the road to his front garden, OK.
0:42:47 > 0:42:51In terms of his experience, there's no trees to sort out, but his interior design skills
0:42:51 > 0:42:56will come in useful refurbishing, which is probably going to take quite a bit of effort.
0:42:56 > 0:42:59Find out how he gets on later in the show.
0:43:02 > 0:43:05Well, we wait patiently for our buyers
0:43:05 > 0:43:06to do work on their properties
0:43:06 > 0:43:09and sometimes they make a wonderful job of it.
0:43:09 > 0:43:12And sometimes they don't do anything at all!
0:43:12 > 0:43:16So what's happened with today's buyers? Let's find out.
0:43:20 > 0:43:26Now back to Milton Regis in Kent, where this early-16th-century coach house sold for £60,000.
0:43:26 > 0:43:33It needed a bit of modernising, but the new owner was taken with its Tudor charms.
0:43:33 > 0:43:35It's a quirky little place. It's got character.
0:43:35 > 0:43:39I thought it'd make someone a nice home and it's a nice building.
0:43:39 > 0:43:43A bit of history behind it as well so...yeah.
0:43:43 > 0:43:47Two months later, we caught up with Daniel back at the house.
0:43:47 > 0:43:52Not only has he got a tenant living there now, but it's already looking much more homely and inviting.
0:43:52 > 0:43:58# I just want you to understand
0:43:58 > 0:44:01# That it feels like home
0:44:01 > 0:44:04# That it knocks me out
0:44:04 > 0:44:08# Just to feel this way
0:44:08 > 0:44:11# And know I broke out... #
0:44:12 > 0:44:14Throughout the house,
0:44:14 > 0:44:19everything's been redecorated and the whole place feels fresher and brighter.
0:44:21 > 0:44:24Most of the work here has been in the kitchen,
0:44:24 > 0:44:27but rather than open it up into the lounge, Daniel decided
0:44:27 > 0:44:31to rearrange it instead and put the space to much better use.
0:44:31 > 0:44:35As you can see, we totally ripped out the kitchen and started again.
0:44:35 > 0:44:40A big feature of the old kitchen was the boiler that was hung on the wall.
0:44:40 > 0:44:43We've renewed the boiler system but because of the access for the flue,
0:44:43 > 0:44:47we've had to keep it in the same place but we've boxed it in. This is a stud wall.
0:44:47 > 0:44:54It's been brought forward to allow a free-standing washing machine to go underneath quite freely
0:44:54 > 0:44:57with the door on the front to give a streamline effect.
0:44:57 > 0:44:59Other than that, it's quite straightforward.
0:44:59 > 0:45:01New sink, new oven, new hob.
0:45:01 > 0:45:07We made use of this wall with the cabinets, cut down this wall unit here,
0:45:07 > 0:45:11just to give it a streamlined, more fitted look.
0:45:11 > 0:45:16And there's been more reorganising upstairs in the bathroom.
0:45:19 > 0:45:23In the bathroom, we decided to rip out the bathroom and start again.
0:45:23 > 0:45:26The boxing that was here before was very big and intrusive.
0:45:26 > 0:45:29We investigated whether it needed to be that big.
0:45:29 > 0:45:32We found out that the sewer pipe was neatly in the corner,
0:45:32 > 0:45:35so we've made all the boxing a lot more streamlined.
0:45:35 > 0:45:37This has allowed us to get a standard bath in this way
0:45:37 > 0:45:41and put a wall-hung basin and a back-to-the-wall toilet as well,
0:45:41 > 0:45:46which makes the bathroom look a lot bigger and a lot more spacious, and modernising it at the same time.
0:45:46 > 0:45:49Daniel did all the work himself.
0:45:49 > 0:45:53Being a kitchen and bathroom fitter does have its advantages.
0:45:53 > 0:45:56As promised, he even sanded down that old parquet flooring.
0:45:56 > 0:46:00So why has he hidden it under a carpet?
0:46:00 > 0:46:05Well sadly, a flash flood that ran into the property ruined all his hard work.
0:46:05 > 0:46:07# That water
0:46:07 > 0:46:11# Spreading all around... #
0:46:12 > 0:46:16I was absolutely gutted. I honestly couldn't believe it.
0:46:16 > 0:46:21It came through the back. As I've walked through the building, my face just dropped.
0:46:21 > 0:46:26I was absolutely gutted, but sometimes, these things happen.
0:46:26 > 0:46:30With the listing outside as well, to fix the problem, it's now fixed,
0:46:30 > 0:46:32but again, we have to consult with the listings people
0:46:32 > 0:46:38and the freeholders as to what we can do to rectify the problem, but yes, it was a bit of a nightmare.
0:46:38 > 0:46:42A nightmare indeed, especially considering
0:46:42 > 0:46:45that all this happened just two days before the tenants moved in.
0:46:45 > 0:46:50But Daniel got the place dried out and the carpet down just in time,
0:46:50 > 0:46:53so thankfully, now it's just full of furniture rather than water.
0:46:53 > 0:46:56It was quite easy to get tenants to be honest.
0:46:56 > 0:47:00It's quite a nice area, a nice location, it's got off-street parking
0:47:00 > 0:47:02as well which not many places around here have got.
0:47:02 > 0:47:07There was six or seven people to choose from. We chose a very nice couple.
0:47:07 > 0:47:11It's fantastic news that Daniel managed to rent the property so quickly
0:47:11 > 0:47:16as there was always the risk that those draughty period windows might've put some tenants off.
0:47:16 > 0:47:20But it looks like his wish to get double glazing fitted
0:47:20 > 0:47:23into the back of the house at least might come true.
0:47:24 > 0:47:28# Window wishing That's all I do
0:47:28 > 0:47:32# Just window wishing Because of you... #
0:47:32 > 0:47:38We would've loved to have changed the windows but we weren't able to do that because of the listings,
0:47:38 > 0:47:45but we are speaking to the freeholder and the council to see if we can at least put PVC windows
0:47:45 > 0:47:47out the back.
0:47:47 > 0:47:49The main thing with the listing is,
0:47:49 > 0:47:54you've got to play by the rules and you're governed by what the listings people say.
0:47:54 > 0:47:59Daniel managed to keep his costs low and spent £9,500 on the work.
0:47:59 > 0:48:04That was £500 less than his original ten grand budget.
0:48:04 > 0:48:06It helped that he did all the work himself,
0:48:06 > 0:48:09with a little help from his eight-year-old daughter, Shannon.
0:48:09 > 0:48:11# She's a daddy's girl
0:48:11 > 0:48:13# She's Daddy's girl
0:48:13 > 0:48:15# She's got him wrapped around her finger
0:48:15 > 0:48:17# She's Daddy's girl... #
0:48:18 > 0:48:21She came down and helped me do a bit of painting.
0:48:21 > 0:48:25She was quite excited to come and give her dad a hand.
0:48:25 > 0:48:29She got her whites on and was painting the walls, yeah.
0:48:29 > 0:48:34She enjoyed it. She was helping me so I can't take all the credit.
0:48:34 > 0:48:37So has Daniel AND Shannon's hard work paid off?
0:48:37 > 0:48:43The £9,500 budget added to the purchase price of 60,000
0:48:43 > 0:48:47means the total outlay here was just short of £70,000.
0:48:47 > 0:48:49Was that money invested wisely?
0:48:49 > 0:48:52Let's hear from two local estate agents.
0:48:55 > 0:48:58I like the property because it's just a bit quirky,
0:48:58 > 0:49:01it's got different levels, there's exposed beams.
0:49:01 > 0:49:04It's not your conventional two-up, two-down.
0:49:04 > 0:49:05The standard of work's really good.
0:49:05 > 0:49:09They've kept the character and brought it up to modern standards.
0:49:09 > 0:49:11They've done a good job.
0:49:11 > 0:49:15Have Daniel's improvements made any difference to the value of the property?
0:49:15 > 0:49:19Remember the total spend is just under 70,000.
0:49:19 > 0:49:24I would expect to achieve around £110,000 for this property.
0:49:24 > 0:49:29At the moment, I think the property should achieve in the region of 110, £115,000.
0:49:29 > 0:49:34I think 110-115 is a fair price, but we're in it for the long haul.
0:49:34 > 0:49:36It's rented. That's the way we want to go.
0:49:36 > 0:49:38So we're happy to carry on renting it out.
0:49:38 > 0:49:42Daniel's charging his current tenants £600 per month.
0:49:42 > 0:49:47Do the estate agents' estimates match up?
0:49:47 > 0:49:51I'd expect to achieve around £600 per calendar month if we were renting this.
0:49:51 > 0:49:58If they were going to rent it, probably put it up for 625, probably achieving 600.
0:49:58 > 0:49:59600, 625 is fair.
0:49:59 > 0:50:06We've rented it out for 600 so we're happy with that. That's fine, that's good.
0:50:06 > 0:50:12So he's spot on rental-wise and has made a great potential profit if he ever decided to resell.
0:50:12 > 0:50:17He must be delighted as this was his first attempt at property developing.
0:50:17 > 0:50:21Yes, it's gone very well. Pleased with the way it went.
0:50:21 > 0:50:28Got the property at a good price at auction so we've been able to make a nice yield on it.
0:50:28 > 0:50:31It's been quite an easy first project. Onwards and upwards hopefully.
0:50:36 > 0:50:41We're back to Birmingham now, where this two bed end terrace
0:50:41 > 0:50:44sold at auction for 130,000.
0:50:44 > 0:50:48Its new owner, Robert, planned to renovate it completely for resale,
0:50:48 > 0:50:49doing most of the work himself.
0:50:49 > 0:50:53But there was a possible problem with the road outside.
0:50:53 > 0:50:58- There is something I've got to follow up with the highways department at the council.- Why?
0:50:58 > 0:51:01- I've checked out, they're road-widening.- Ha!
0:51:01 > 0:51:04Road-widening going on parallel over Bristol Road.
0:51:04 > 0:51:08- Is that not quite serious? - 15 million quid's worth.
0:51:08 > 0:51:12- But that's over the other side. This side, I think we'll be OK. - You think?- I think.
0:51:12 > 0:51:18Nine months later, it doesn't look like that road has inched any nearer
0:51:18 > 0:51:19so that's a relief.
0:51:19 > 0:51:21Because of other work commitments,
0:51:21 > 0:51:24Robert has started the renovation but not quite finished it.
0:51:24 > 0:51:28# I work like a dog with no recreation
0:51:28 > 0:51:31# They call me Mr In-Between
0:51:31 > 0:51:34# Mr In-Between
0:51:34 > 0:51:37# Mr In-Between
0:51:39 > 0:51:42# Mr In-Between... #
0:51:42 > 0:51:45Since you last came, I've got rid of all the furniture,
0:51:45 > 0:51:49which was quite a task, and pretty well stripped out.
0:51:49 > 0:51:53I've centred on the outside, repointed.
0:51:53 > 0:51:58Made the ground levels better.
0:51:58 > 0:52:01And that's pretty well where I'm at.
0:52:01 > 0:52:04Ready to fit out now and go.
0:52:04 > 0:52:07There's obviously still a lot of work to do here
0:52:07 > 0:52:11but it's not like Robert hasn't been busy.
0:52:11 > 0:52:15I'm glad to see he's tackled that low ceiling in the second bathroom.
0:52:15 > 0:52:18# Beatin' my head against a wall... #
0:52:22 > 0:52:25The original landing height was just here
0:52:25 > 0:52:27so basically I introduced another step,
0:52:27 > 0:52:30raised the half landing by nine inches
0:52:30 > 0:52:35to coincidentally increase the head height in the guest cloakroom.
0:52:35 > 0:52:38It wasn't quite as simple as you'd think.
0:52:38 > 0:52:42Robert had to rethread the joists carefully through the walls
0:52:42 > 0:52:45to help create the space, but it's worked a treat
0:52:45 > 0:52:48and there'll certainly be fewer bumps in the night.
0:52:48 > 0:52:53However, it was the exterior of the house that created far more work
0:52:53 > 0:52:55than he had anticipated.
0:52:55 > 0:52:59Not only did he have to repoint but he also discovered penetrating damp
0:52:59 > 0:53:01round the back of the kitchen.
0:53:01 > 0:53:02The first thing I had to do
0:53:02 > 0:53:07was really address the potential damp problem,
0:53:07 > 0:53:10where the damp-proof course was compromised by too high ground levels
0:53:10 > 0:53:13hence getting the angle grinder out,
0:53:13 > 0:53:15cutting a trough,
0:53:15 > 0:53:17all round the perimeter of the building,
0:53:17 > 0:53:20dropping the level to prevent any moisture
0:53:20 > 0:53:26from travelling through the main walls, and as you can see,
0:53:26 > 0:53:28refenced, garden wall.
0:53:28 > 0:53:31Not quite finished. I've got to put some surface treatment
0:53:31 > 0:53:35on the slab, and then a nice little patio area.
0:53:35 > 0:53:39At the front, Robert plans to dig out the garden
0:53:39 > 0:53:41and put in two parking spaces.
0:53:41 > 0:53:43He'll need to get the council's help
0:53:43 > 0:53:46and permission to drop the payment for access.
0:53:46 > 0:53:48If they agree, it will certainly make the property
0:53:48 > 0:53:50much more appealing to buyers.
0:53:50 > 0:53:54But will the council's own plans to widen the road
0:53:54 > 0:53:56wreak havoc with Robert's?
0:53:56 > 0:54:01I think it was more a case of yellow lines rather than road-widening.
0:54:01 > 0:54:04I think the road-widening was on the other side of the hospital
0:54:04 > 0:54:10so there's no danger or no worries on that score.
0:54:10 > 0:54:14Even though there's a lot of finishing off to do here,
0:54:14 > 0:54:18Robert's still optimistic about coming in on his 13 grand budget.
0:54:18 > 0:54:21That still sounds tight to me but depending on the level
0:54:21 > 0:54:26of finish and the labour costs he'll be saving by doing the work himself,
0:54:26 > 0:54:27he might just do it.
0:54:27 > 0:54:31He plans to put it up for resale once it's finish but surely
0:54:31 > 0:54:33the rental market is tempting,
0:54:33 > 0:54:36with the university and hospital so close by.
0:54:37 > 0:54:40# Doctor, doctor, give me the news
0:54:40 > 0:54:42# I've got a bad case of lovin' you... #
0:54:42 > 0:54:44I shall certainly sell.
0:54:44 > 0:54:48I don't want to let it out.
0:54:48 > 0:54:51I want it to have a freshness when I sell it
0:54:51 > 0:54:54so I won't be letting or anything like that.
0:54:54 > 0:54:59Well, I think he may be missing out on a lucrative market.
0:54:59 > 0:55:03All those students and doctors would love to rent just across the road.
0:55:06 > 0:55:11# Opportunity, opportunity This is your big opportunity... #
0:55:11 > 0:55:14What do two local property experts think?
0:55:15 > 0:55:17We asked them to take a look.
0:55:20 > 0:55:24It's very cute. It's over three floors, which is rather unusual.
0:55:24 > 0:55:26It's got a lot of character to it.
0:55:26 > 0:55:30It's a typical property of this particular part of Birmingham.
0:55:30 > 0:55:32Fixtures and fittings for this house,
0:55:32 > 0:55:34it needs to be something durable
0:55:34 > 0:55:36because it will attract the tenants
0:55:36 > 0:55:40and tenants do tend to not look after a house like a homeowner does.
0:55:40 > 0:55:43Robert plans to sell the property.
0:55:43 > 0:55:45After paying £130,000
0:55:45 > 0:55:48plus the £13,000 he reckons the work will cost,
0:55:48 > 0:55:53he'll have spent a total of £143,000,
0:55:53 > 0:55:56so what could it resell for?
0:55:56 > 0:55:59Once renovated with accommodation as it is,
0:55:59 > 0:56:03I would suggest putting it on the market at £165,000.
0:56:03 > 0:56:07Fully renovated, this property, in good condition,
0:56:07 > 0:56:11would fetch between 170 and £175,000.
0:56:11 > 0:56:15I think they're in line with what I expected them to say.
0:56:15 > 0:56:20Perceived level of finish, they have no idea what's going in.
0:56:20 > 0:56:23You know, degrees of white goods,
0:56:23 > 0:56:27things like that, which will all be included.
0:56:27 > 0:56:29So I think in a month or two,
0:56:29 > 0:56:33when the market picks up a bit, I'm sure I'll exceed that.
0:56:33 > 0:56:36Even if it does just sell for the experts' estimates,
0:56:36 > 0:56:40he could make between £22,000 and £32,000
0:56:40 > 0:56:45but hopefully, Robert is right and once he's completed the work,
0:56:45 > 0:56:49the market will have picked up so he can make even more.
0:56:54 > 0:56:57Join us next time when we have more riveting stories
0:56:57 > 0:56:59from Britain's auction rooms.
0:56:59 > 0:57:02- You wouldn't want to miss it so join us then.- Bye.- Goodbye.
0:57:06 > 0:57:09Subtitles by Red Bee Media Ltd
0:57:09 > 0:57:12E-mail subtitling@bbc.co.uk