0:00:02 > 0:00:07- We've witnessed the ups and downs of the property market. - Buying for investment or as a home,
0:00:07 > 0:00:09you want the price to go up!
0:00:09 > 0:00:13Make sure you buy at the right price.
0:00:13 > 0:00:17Visit an auction room and buy your home under the hammer.
0:00:42 > 0:00:49- We're aware of the changing fortunes of the property market. - Buying at auction is simple.
0:00:49 > 0:00:55- Your hand goes up. The hammer comes down. You've bought it.- Just like when today's properties were sold.
0:00:56 > 0:01:02'In Cornwall, I'm gearing up for great things at this cottage.'
0:01:02 > 0:01:05You know what? As a start, this is great!
0:01:06 > 0:01:12'This bungalow in Staffordshire doesn't look quite so appealing.'
0:01:12 > 0:01:15It feels a bit makeshift, so not the best first impression.
0:01:16 > 0:01:22'And it's all about location, when it comes to this London flat.'
0:01:22 > 0:01:26This is a very desirable part of the capital.
0:01:27 > 0:01:30'These properties were sold at auction.
0:01:30 > 0:01:36'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:39 > 0:01:45I'm in Cornwall, about eight miles from St Austell, in Gorran Haven.
0:01:45 > 0:01:49Situated in a secluded bay between two sandy beaches,
0:01:49 > 0:01:52it's obviously a popular tourist spot.
0:01:52 > 0:01:57Big question is, what's it like when it comes to investing in property?
0:01:57 > 0:02:00# Everybody loves the sunshine... #
0:02:00 > 0:02:06'The natural beauty of the area will be sure to attract investors.
0:02:06 > 0:02:10'How will the property I'm here to view fare?'
0:02:10 > 0:02:12# ..Everybody loves the sunshine... #
0:02:12 > 0:02:18The property I'm here to see is on this row of fishermen's cottage.
0:02:18 > 0:02:20It all looks terribly quaint -
0:02:20 > 0:02:22until you look a bit closer.
0:02:22 > 0:02:27For a start, where's the front door?
0:02:27 > 0:02:30'This cottage was built in the 18th century,
0:02:30 > 0:02:33'when keeping it warm was a little more tricky.
0:02:33 > 0:02:39'My guess is that, to shelter occupants from bracing sea breezes,
0:02:39 > 0:02:41'the main entrance was put at the back.
0:02:41 > 0:02:44'So, the front door is the back door.'
0:02:44 > 0:02:47# Open up your back door... #
0:02:50 > 0:02:54Never know quite what to expect with these little cottages.
0:02:54 > 0:02:59A pleasant surprise - a big kitchen/dining room.
0:02:59 > 0:03:03We like this. I even quite like the kitchen units.
0:03:03 > 0:03:07It's got a bit of character, and fits in.
0:03:07 > 0:03:11Beams. It's looking good so far and it doesn't feel cramped,
0:03:11 > 0:03:13which is a major bonus.
0:03:13 > 0:03:18Through to the front, where you've got another open-plan room.
0:03:18 > 0:03:22Open stairs up to the bedroom and a nice big fire.
0:03:22 > 0:03:24A real fire, just what you want.
0:03:24 > 0:03:27But surpassing all of that is the view.
0:03:27 > 0:03:30Absolutely fantastic. You know what?
0:03:30 > 0:03:33As a start, this is great.
0:03:33 > 0:03:37'Cottages can often seem dark, but the open-plan layout
0:03:37 > 0:03:42'maximises the daylight and gives it a lovely bright feel.
0:03:42 > 0:03:46'So, what else is on offer?'
0:03:46 > 0:03:49Upstairs, it still has that nice feel.
0:03:49 > 0:03:52The white walls give a nice feeling of openness.
0:03:52 > 0:03:56Three reasonable sized bedrooms.
0:03:56 > 0:04:00What is unreasonable is the space wasted with this.
0:04:00 > 0:04:05That is a hot water cylinder. It's absolutely gargantuan.
0:04:05 > 0:04:10It looks old, so replace that with a combination boiler in the kitchen.
0:04:10 > 0:04:13You've now created much-needed space upstairs
0:04:13 > 0:04:18which, in a small house like this, is absolutely great news.
0:04:18 > 0:04:23'Another area where things feel a little cramped is the bathroom.
0:04:23 > 0:04:26'You can barely open the door.
0:04:26 > 0:04:31'Apart from losing a bedroom, I'm not sure you can do much about this,
0:04:31 > 0:04:35'apart from installing a shower instead of a bath.
0:04:35 > 0:04:38'It depends what you want to do with the place.
0:04:38 > 0:04:41'This could make an ideal holiday cottage,
0:04:41 > 0:04:44'a scenic seaside getaway.'
0:04:44 > 0:04:48# Down by the seaside
0:04:49 > 0:04:53# See the boats go sailing... #
0:04:53 > 0:04:58Clearly, that is the main asset to this property, the fantastic view,
0:04:58 > 0:05:01but it's not making the most of it.
0:05:01 > 0:05:05One thing that would be nice would be to have a front door.
0:05:05 > 0:05:10The only option is to take out one of these windows and put a door in.
0:05:10 > 0:05:15That could lead out onto some kind of a decking or a patio.
0:05:15 > 0:05:17What are you going to do here?
0:05:17 > 0:05:23Sit here with your cup of tea or glass of wine and look at that!
0:05:23 > 0:05:28'And it's not just the outdoor space at the front that has potential.
0:05:28 > 0:05:34'At the back, there's just the spot to while away a summer evening.
0:05:34 > 0:05:37'All it needs is a bit of landscaping.
0:05:37 > 0:05:43'This is ticking a lot of boxes so, with a guide price of 165,000,
0:05:43 > 0:05:47'I want to know what a local estate agent makes of it.'
0:05:48 > 0:05:53A holiday home is probably its primary function now.
0:05:53 > 0:05:56There'll be a good income potential.
0:05:56 > 0:06:00'What could a new owner do to increase value here?'
0:06:00 > 0:06:05The first thing would be to excavate space for parking at the front.
0:06:05 > 0:06:08It would be a huge bonus and increase the value.
0:06:08 > 0:06:11'The lack of parking could be a drawback,
0:06:11 > 0:06:14'especially if the owner was looking to let it out.
0:06:14 > 0:06:17'What sort of rent could they expect?'
0:06:17 > 0:06:22The rental for this property would be around £700 per calendar month.
0:06:22 > 0:06:26'How would that compare to the rate for a holiday let?'
0:06:26 > 0:06:31The holiday rental, roughly, in the peak season would be £750 per week.
0:06:31 > 0:06:33'That could make a lot of sense.
0:06:33 > 0:06:39'What about the resale value if they decided to refurbish and sell on?'
0:06:39 > 0:06:45If the property was renovated, the resale value would be £210,000 to £215,000.
0:06:45 > 0:06:52Not cheap, but a very appealing property that I think would make a very good investment.
0:06:52 > 0:06:55Let's see who fancied it when it went under the hammer.
0:06:57 > 0:07:03Fantastic location. Great sea and headland views. Three bedrooms.
0:07:03 > 0:07:06Who'll open the bidding? £150,000?
0:07:06 > 0:07:09£150,000 I'm bid. 160 anywhere?
0:07:09 > 0:07:11160 I'm bid. And 170?
0:07:11 > 0:07:14170? 170 I'm bid. And 180?
0:07:14 > 0:07:19I'll take five. Five? 175,000 I'm bid.
0:07:19 > 0:07:21180? 180,000 I'm bid.
0:07:21 > 0:07:24May I say 185? 185 I'm bid.
0:07:24 > 0:07:28And 190? 190? At £185,000.
0:07:28 > 0:07:32187 and a half. 187 and a half I'm bid.
0:07:32 > 0:07:36And 190? 190? £187,500.
0:07:36 > 0:07:38I'll take 1,000 if you like.
0:07:38 > 0:07:41188 and a half. 188 and a half I'm bid.
0:07:41 > 0:07:46190, madam? 190 I'm bid. May I say 191?
0:07:46 > 0:07:49191? £190,000 in the room.
0:07:49 > 0:07:53£190,000 for the first time.
0:07:53 > 0:07:55At £190,000 for the second time.
0:07:55 > 0:08:00And third and last time. Congratulations, it's yours at £190,000.
0:08:00 > 0:08:06'That successful bid of 190,000 came from Carolyn and husband Richard.
0:08:06 > 0:08:09'Richard's a sound engineer and song writer.
0:08:09 > 0:08:13'Carolyn's a self-employed consultant in the motor industry.
0:08:13 > 0:08:20'I met up with Carolyn at the cottage to hear about the plans for the place.'
0:08:20 > 0:08:24- Congratulations.- Thank you.- Tell me why you wanted to buy this place.
0:08:24 > 0:08:28We were looking as an investment as a holiday home
0:08:28 > 0:08:32in an area where you've got a sea view, pretty village.
0:08:32 > 0:08:38That certainly will attract the sort of audience we were looking for.
0:08:38 > 0:08:41- Why this part of Cornwall? - It's completely unspoilt.
0:08:41 > 0:08:47Proper Cornish village. St Ives is very nice but also quite expensive.
0:08:47 > 0:08:54You've got Heligan, Eden Project, St Austell, all on your doorstep.
0:08:54 > 0:08:57So, really, it's the perfect place to be.
0:08:57 > 0:09:01Tell me about you, then. Is this something you do as a general rule?
0:09:01 > 0:09:06No, it's not! I've always worked for British motor manufacturers,
0:09:06 > 0:09:09which are no longer in existence.
0:09:09 > 0:09:14So I do consultancy work for either dealer groups or manufacturers,
0:09:14 > 0:09:19but I've always had an interest in interior and garden design.
0:09:19 > 0:09:23- What prompted you to do it now? - I've been looking for quite a while.
0:09:23 > 0:09:29We live in Hampshire, where anything that comes up for renovation or restoration
0:09:29 > 0:09:31goes for absolute megabucks.
0:09:31 > 0:09:39So then you think we'll look on the coast for something we can use, for friends and a holiday let.
0:09:39 > 0:09:44'But holiday lets aren't all plain sailing.
0:09:44 > 0:09:49'There's a lot to consider, especially when you live 200 miles away.'
0:09:49 > 0:09:53- How long does it take to get here? - Three and a half to four hours.
0:09:53 > 0:09:57Depending on the traffic and who's driving.
0:09:57 > 0:10:04Long-distance renovation can throw up some issues. How are you going to deal with those?
0:10:04 > 0:10:10We've been fortunate to find a local builder who has done work on these cottages and maintains them.
0:10:10 > 0:10:13So that's one hurdle.
0:10:13 > 0:10:18And obviously, I can live down here while renovation goes on.
0:10:18 > 0:10:22And managing the property once it's up and finished?
0:10:22 > 0:10:26We've discovered a lady who lives close that looks after holiday lets,
0:10:26 > 0:10:31and she's offered to do change-overs and maintain it for us.
0:10:31 > 0:10:35'The property might not be on her doorstep,
0:10:35 > 0:10:39'but with the right people on board, it could be a profitable venture.
0:10:39 > 0:10:43'Why was Carolyn attracted to this cottage?'
0:10:43 > 0:10:45It has a nice sea view.
0:10:45 > 0:10:51It's got lots of character. I felt it got everything that we needed.
0:10:51 > 0:10:55- And the negatives?- Lack of parking.
0:10:55 > 0:11:00Which is a big issue. We're applying for planning permission.
0:11:00 > 0:11:06That was the biggest negative. We've found a few since, but no parking is the biggest issue.
0:11:06 > 0:11:11- How are you going to resolve that? - I've spoken to Cornwall Council.
0:11:11 > 0:11:14They've asked me to drop them a line.
0:11:14 > 0:11:19They felt we might not need planning but we may need an engineer's report
0:11:19 > 0:11:24because of the proximity to the building.
0:11:24 > 0:11:30- So the idea is to dig out the front garden?- A certain area, so you can get a car in.
0:11:30 > 0:11:34Then make a nice terrace with a door going through to it.
0:11:34 > 0:11:37'It wasn't just the parking that was a problem.
0:11:37 > 0:11:41'Carolyn has more to do to make this a successful holiday let.'
0:11:41 > 0:11:47We've got a chimney breast to take out to make more room in the bedrooms.
0:11:47 > 0:11:51Sort the garden out, so you've got a nice patio area.
0:11:51 > 0:11:54Just general refurbish throughout.
0:11:54 > 0:11:58One unusual thing is that there isn't a front door.
0:11:58 > 0:12:03My plan was to have a door put in, which meant moving the stairs.
0:12:03 > 0:12:08Because of the proximity to next door, that's a non-starter.
0:12:08 > 0:12:12So I'll take out this window and have that made into a door.
0:12:12 > 0:12:17'With a budget of £10,000 and three months to get the job done,
0:12:17 > 0:12:21'it's just as well Carolyn has found a reliable local builder.
0:12:21 > 0:12:25'He'll be in charge of a few major structural changes,
0:12:25 > 0:12:30'with a front door being put in and the driveway dug up.
0:12:30 > 0:12:34'What else does she have planned for the outside?'
0:12:34 > 0:12:41I used to think a garden was to sunbathe in and if my mother said to mow the lawn, I'd go to the pub!
0:12:41 > 0:12:45Now I've got an interest in gardens so I've put a design together
0:12:45 > 0:12:51to go with the property and make it a very pleasant sitting area.
0:12:51 > 0:12:56- Congratulations. We look forward to seeing how you get on.- Thank you.
0:12:56 > 0:13:02With views like this you can understand why Carolyn would want to buy here.
0:13:02 > 0:13:07Running a holiday home makes financial sense, but it's a lot of hard work.
0:13:07 > 0:13:11How will she get on? Find out later in the show.
0:13:16 > 0:13:18'Staffordshire is in the heart of England.
0:13:18 > 0:13:22'Whilst Norton may not be the country's lifeblood,
0:13:22 > 0:13:25'its many transport links keep the area popular.
0:13:25 > 0:13:31'I'm here to see a property with a guide price that made my heart skip a beat.'
0:13:31 > 0:13:34It was £55,000, which I think is very modest.
0:13:34 > 0:13:36It looks like the property is, too.
0:13:36 > 0:13:40It's a one-bedroom bungalow. I'm going to check it out.
0:13:40 > 0:13:46'The front garden looks promising, but will this bungalow live up to its looks?'
0:13:46 > 0:13:52The main front door is accessing a lean-to with a cheap plastic roof.
0:13:52 > 0:13:56Not terribly welcoming and something I'd like to change.
0:13:56 > 0:14:00So you can keep prams and bikes out of the elements,
0:14:00 > 0:14:03but there's no huge advantage and it feels a bit makeshift.
0:14:03 > 0:14:06Not the best first impression.
0:14:08 > 0:14:11'It leads straight into the kitchen.
0:14:11 > 0:14:15'You don't want muddy boots traipsing through here.
0:14:15 > 0:14:17'No, no. This won't do.
0:14:17 > 0:14:21'A serious reconfiguration is needed, I'm afraid. But hang on.
0:14:21 > 0:14:24'What's this?'
0:14:24 > 0:14:30There has been major damage up there. Probably water damage. Possibly a leak.
0:14:30 > 0:14:34Have this checked out by a builder or a roofer before the auction.
0:14:34 > 0:14:41At the moment, it's a big unknown and the budget could spiral out of control.
0:14:41 > 0:14:44'This place really needs to be rescued.
0:14:44 > 0:14:46'The living room seems sad and soggy.
0:14:46 > 0:14:50'The only thing flourishing here are the mushrooms. Yuck!
0:14:50 > 0:14:54'The bathroom is suffering from a serious case of damp, too.
0:14:54 > 0:14:57'Quick! Someone call for help!'
0:14:57 > 0:14:59# Save me! Save me!
0:14:59 > 0:15:02# Save me...! #
0:15:02 > 0:15:06'The bedroom's escaped the worst of the damage,
0:15:06 > 0:15:12'but the whole bungalow needs to be thoroughly dried out before you think about improvements.'
0:15:12 > 0:15:17I look at property and always think, "How can I add some value?"
0:15:17 > 0:15:23I would like to add some extra square footage here. This is just a one-bedroom bungalow.
0:15:23 > 0:15:28I'd think about extending to the side. There's plenty of space.
0:15:28 > 0:15:30Then you could create a second bedroom.
0:15:30 > 0:15:36It could add £40,000 to the end value, so well worth considering.
0:15:36 > 0:15:40'You've still got a pleasant garden at the back,
0:15:40 > 0:15:45'so you won't miss the space at the side when the extension's complete.'
0:15:45 > 0:15:50It's a fairly small garden, what you'd expect with a house this size.
0:15:50 > 0:15:53I would like to have had a window
0:15:53 > 0:15:57on this back wall cos it's a bit bland to look at.
0:15:57 > 0:16:04I'm not sure if some reconfiguring would give you access into this garden. It really does need that.
0:16:04 > 0:16:09'This little bungalow needs new life breathed into it.
0:16:09 > 0:16:14'Time to get the opinion of a local estate agent.'
0:16:14 > 0:16:20The bungalow needs lots of work, repair and replacement throughout. It has had water damage.
0:16:20 > 0:16:22The ceiling needs to be repaired.
0:16:22 > 0:16:25I recommend a buyer checks the roof
0:16:25 > 0:16:28to see the extent of work needed.
0:16:28 > 0:16:34'Once the damage has been dealt with and the property renovated, how much could it be worth,
0:16:34 > 0:16:39'bearing in mind that guide price of just £55,000?'
0:16:41 > 0:16:46I would estimate the property be worth in the region of £90,000.
0:16:46 > 0:16:53'I see more potential here, so how much value could you add by increasing its square footage?'
0:16:53 > 0:16:56The main way to add value to the property
0:16:56 > 0:16:59would be to extend.
0:16:59 > 0:17:05It's only a one-bedroom accommodation, which is limiting for either rental or resale.
0:17:05 > 0:17:11After it's been extended, the property would be in the region of £125,000.
0:17:11 > 0:17:13'What about the rental potential?'
0:17:13 > 0:17:22The rental income as a one-bedroom property would be in the region of £400 to £450 per calendar month.
0:17:22 > 0:17:28As a two-bedroom property, it would be closer to 500, 550 per calendar month.
0:17:28 > 0:17:32I think this little home could make someone a pretty penny.
0:17:32 > 0:17:37It may be small, but if you were to extend, it could give a big return.
0:17:37 > 0:17:40Who wanted this? Let's find out, as we go to auction.
0:17:40 > 0:17:45Detached bungalow in need of attention. 50, can I say?
0:17:45 > 0:17:50Start me at 45. It's got to be worth that. 45 I'm bid. Thank you.
0:17:50 > 0:17:52At £45,000.
0:17:52 > 0:17:54Yeah. 50 I'm bid.
0:17:54 > 0:17:57Lady's bid now. At £55,000 seated.
0:17:57 > 0:18:01I'll take one if it helps. New bidder seated. £56,000.
0:18:01 > 0:18:0457. 58.
0:18:04 > 0:18:0759. 60.
0:18:07 > 0:18:0961. 62...
0:18:09 > 0:18:1162 and a half, then.
0:18:11 > 0:18:1463. Another half.
0:18:14 > 0:18:1663 and a half. 64.
0:18:16 > 0:18:1964,000, gentleman on the back row.
0:18:19 > 0:18:21At £64,000. New bidder.
0:18:21 > 0:18:2564 and a half. 65.
0:18:25 > 0:18:2670.
0:18:26 > 0:18:3075. 75, then, lady in red.
0:18:30 > 0:18:32At £75,000 first time.
0:18:32 > 0:18:3675 second time. Third and final time...
0:18:37 > 0:18:40Your lot, madam. Well done.
0:18:40 > 0:18:46'The successful bid of £75,000 was placed by retired shopkeeper Rose.'
0:18:46 > 0:18:48# Lady Rose
0:18:49 > 0:18:51# My lady Rose... #
0:18:51 > 0:18:55'She bought the property with her partner, Tom.
0:18:55 > 0:19:01'The couple live locally in a three-bedroom house and are looking to down-size.'
0:19:01 > 0:19:04Tom and Rose, lovely to meet you. Congratulations.
0:19:04 > 0:19:12- Why did you want this bungalow?- We wanted somewhere small so we didn't have to do so much gardening.
0:19:12 > 0:19:17And less housework. We're getting older so we need less work.
0:19:17 > 0:19:20- You bought it to live in, Rose?- Yes.
0:19:20 > 0:19:25- Tom, what do you like about this property? - The same reason. Less work.
0:19:25 > 0:19:29'Hang on a minute. LESS work?
0:19:29 > 0:19:34'I can see that when it's completed this will be a low-maintenance home,
0:19:34 > 0:19:41'but it's going to take a lot of effort to transform it into the perfect retirement bungalow.'
0:19:44 > 0:19:48What can you tell me about the huge gaping hole in the hallway?
0:19:48 > 0:19:52- Is that water damage?- Yes. What's happened over the severe winter,
0:19:52 > 0:19:56I think the house was left empty with the water connected.
0:19:56 > 0:20:02Everything froze up, pipe burst and goodness knows how long
0:20:02 > 0:20:05it was running from the ceiling, which caused the damage.
0:20:05 > 0:20:08All the floors were soaking wet,
0:20:08 > 0:20:13so probably a bit bleak underneath, I don't know till I take a board up.
0:20:13 > 0:20:20'Tom's a retired heating engineer, so knows about plumbing, and their son is an electrician.
0:20:20 > 0:20:24'So they've got several trades covered already.
0:20:24 > 0:20:30'Rose, who was born in Norton, will be responsible for the decoration and sorting out the garden.
0:20:30 > 0:20:36'How much are they going to spend on making this their new home?'
0:20:36 > 0:20:38At little as possible!
0:20:38 > 0:20:45Wants central heating straightaway so have to cater for that. New bathroom, kitchen.
0:20:45 > 0:20:49I'm looking at about 15,000, something like that.
0:20:49 > 0:20:54There's room on the side for an extension, probably at a later date.
0:20:54 > 0:20:57We want to do all the main work first,
0:20:57 > 0:21:02and then sit back and see what else can be done to improve it.
0:21:02 > 0:21:07'One of the improvements Tom and Rose are considering
0:21:07 > 0:21:11'is how to sort out the awkward layout.'
0:21:11 > 0:21:15I like the idea of a lounge on this side, a bit further back.
0:21:15 > 0:21:21Have this room as a bedroom and then the bedroom as a lounge.
0:21:21 > 0:21:26I think that's a great idea because to have some access at the back
0:21:26 > 0:21:30out to the garden is what is needed here.
0:21:30 > 0:21:35You've only got views to the front. It's quiet and green out the back.
0:21:35 > 0:21:38- And you can't see it!- No. - So that's a great idea.
0:21:38 > 0:21:42'The couple reckon they'll take four months to do the work.
0:21:42 > 0:21:48'With lots of family living locally and willing to help, they're relaxed about getting it done.'
0:21:48 > 0:21:51We're in no big rush to move in.
0:21:51 > 0:21:55We've got no reason to rush at our time in life, have we?
0:21:55 > 0:22:02You're supposed to be taking long holidays and you've taken a project like this, what are you thinking?
0:22:02 > 0:22:06- I think we needed motivating. - Did you?- Yeah.- Why's that?
0:22:06 > 0:22:09Because we spend a lot of time doing nothing.
0:22:09 > 0:22:15You need a project, to be doing something to look forward to.
0:22:15 > 0:22:21- Tom, do you agree, or do you enjoy doing nothing? - Well, I do enjoy reading me paper!
0:22:21 > 0:22:27- Is this Rose giving you a boot up the backside?- She thought I was getting a bit thick round here.
0:22:27 > 0:22:30She said, "We'll buy a bungalow!"
0:22:30 > 0:22:38I asked her before the auction if she really wanted to. She'd got her mind set on it, so here we are.
0:22:38 > 0:22:44- Good luck with this project. I hope you do eventually get time to chill out.- Thank you.
0:22:44 > 0:22:47It's been really nice meeting you. Rose, thank you.
0:22:47 > 0:22:52This is a homecoming for Rose. She is looking forward to living here.
0:22:52 > 0:22:57There'll be no time for Tom to put his feet up and read that paper.
0:22:57 > 0:23:02Will they extend and make the most of this bungalow? Find out later in the programme.
0:23:04 > 0:23:09'Coming up, space is at a premium for flats in this part of London.'
0:23:09 > 0:23:13Looking for more? There isn't any.
0:23:14 > 0:23:21'We return to Staffordshire, where Tom and Rose are spending retirement turning this into a dream home.'
0:23:21 > 0:23:23It was a nightmare!
0:23:25 > 0:23:29'But first, it's been no holiday at this cottage in Cornwall.'
0:23:29 > 0:23:33Living in a house that you're trying to renovate is not easy.
0:23:36 > 0:23:40'Now we're back in Gorran Haven, Cornwall,
0:23:40 > 0:23:43'where this cottage sold at auction for 190,000.
0:23:43 > 0:23:50'It was bought as a holiday let by Carolyn, a consultant in the motor industry, and her husband.
0:23:50 > 0:23:55'It had a lot going for it, including those wonderful views.
0:23:55 > 0:24:02'The biggest issue the couple had was the four-hour commute from home to their new purchase.'
0:24:02 > 0:24:09- What prompted you to do this now, this property development idea? - I've been looking for quite a while.
0:24:09 > 0:24:15We live in Hampshire, where anything that comes up for renovation or restoration
0:24:15 > 0:24:17goes for absolute megabucks.
0:24:17 > 0:24:25Then you think we'll look on the coast for something to use for holidays, friends and a holiday let.
0:24:25 > 0:24:32- How long does it take to get here? - Three to four hours, depending on the traffic and who's driving.
0:24:32 > 0:24:35'So, did they manage the long-distance renovation?
0:24:35 > 0:24:40'We're back four months later to see how their holiday let is faring.
0:24:45 > 0:24:49'The front of the house has been transformed.
0:24:49 > 0:24:54'Traditional white paint and new windows give the cottage a facelift.
0:24:54 > 0:24:59'The most important change is the addition of a new front door.'
0:25:01 > 0:25:06When we bought the house, all we had was two windows and no front door.
0:25:06 > 0:25:13In the morning, it is beautiful so to come out to the front you had to walk all the way round.
0:25:13 > 0:25:17It made sense to take out the window and put the door in.
0:25:17 > 0:25:22Once we'd been here for a couple of weeks we realised, with an east wind,
0:25:22 > 0:25:26that sashes look very nice but they weren't very practical.
0:25:26 > 0:25:31So we took the decision to replace the rest of the windows.
0:25:31 > 0:25:36'Inside, the living room isn't quite finished yet,
0:25:36 > 0:25:41'but it's already a brighter space since the addition of the door.
0:25:41 > 0:25:45'Once redecorated, this will be a warm and cosy room.
0:25:46 > 0:25:48'The kitchen needed brightening up
0:25:48 > 0:25:51'and Carolyn's done a great job.
0:25:51 > 0:25:54'The paint, tiling and work tops
0:25:54 > 0:25:57'have given the room a refreshing new finish.
0:25:57 > 0:26:01'They've also put in a table and chairs
0:26:01 > 0:26:04'to fully utilise the space.'
0:26:04 > 0:26:07The kitchen was so dark, so that all had to go.
0:26:07 > 0:26:10Re-tiled, new work tops, new sink.
0:26:10 > 0:26:14Paint the units because they'd been hand-built,
0:26:14 > 0:26:17and just redecorate.
0:26:17 > 0:26:22'They've also rewired, fixed the plumbing and installed new heating,
0:26:22 > 0:26:27'which means that old immersion heater has been replaced.
0:26:27 > 0:26:33'The stairs have been cheered up with a new carpet and paint job.
0:26:33 > 0:26:37'And that bathroom where you couldn't even open the door
0:26:37 > 0:26:42'has been reorganised, with a shower installed and the bath removed.
0:26:42 > 0:26:45'It's all so much better.
0:26:45 > 0:26:49'The master bedroom has been redecorated with a splash of blue
0:26:49 > 0:26:52'to give it some seaside style.
0:26:53 > 0:26:56'This bedroom was mainly used for storage.
0:26:56 > 0:27:03'Now, it's been redecorated and is a light well-proportioned double room.
0:27:03 > 0:27:09'This room's floor space was restricted by the chimney breast.
0:27:09 > 0:27:14'Carolyn had that removed, so there's room for two single beds,
0:27:14 > 0:27:16'increasing the letting potential.'
0:27:16 > 0:27:21One of the things with this room was the chimney breast across the corner
0:27:21 > 0:27:25which looked nice with a Victorian fireplace, but it had to go.
0:27:25 > 0:27:29Which wasn't easy because it was made out of stone.
0:27:29 > 0:27:32It's made such a difference to open up that corner.
0:27:32 > 0:27:36'Carolyn and Richard have lived here as much as possible
0:27:36 > 0:27:40'to save commuting between Cornwall and Hampshire.
0:27:40 > 0:27:47'They've done a really good job on the renovation, maximising their accommodation upstairs and down.
0:27:47 > 0:27:50'Have there been any nasty surprises?
0:27:50 > 0:27:53'What issues did they find most difficult?'
0:27:53 > 0:27:58The plumbing and some of the wiring. They're the main horrors.
0:27:58 > 0:28:05When you live four hours away, you can't just pop in, do a bit of work and nip home again.
0:28:05 > 0:28:09Living in a house that you're trying to renovate is not always easy.
0:28:09 > 0:28:15'Previously, Carolyn was determined to get a driveway at the front.
0:28:15 > 0:28:19'There's no sign of that having been started,
0:28:19 > 0:28:21'so have there been problems?'
0:28:21 > 0:28:28We originally wrote to Cornwall County Council and they finally responded
0:28:28 > 0:28:33to say we need to be referred to the Highways Department. I left several messages.
0:28:33 > 0:28:36They sent me lots of forms to fill in.
0:28:36 > 0:28:39Then they did a site visit and said, "No.
0:28:39 > 0:28:43"It's nothing to do with us." And referred us to Cornwall Council.
0:28:43 > 0:28:45'How frustrating!
0:28:45 > 0:28:50'Carolyn and Richard decided to apply for full planning permission.
0:28:50 > 0:28:54'Unexpected delays are common with renovation projects.
0:28:54 > 0:28:59'Carolyn planned to spend two to three months on the work.
0:28:59 > 0:29:02'Four months on, and there's still some left to do.
0:29:02 > 0:29:07'Until the driveway's complete, plans for the garden are on hold.
0:29:07 > 0:29:11'So, the timescale's slipped. What about the budget?'
0:29:11 > 0:29:15The original budget was 10,000, including the parking.
0:29:15 > 0:29:21Because we decided to do extra work like the new windows, the chimney breast, the bathroom,
0:29:21 > 0:29:25I've spent just under 10,000! LAUGHS
0:29:25 > 0:29:29So the parking will be in addition to that.
0:29:29 > 0:29:33'So, with the purchase price of 190,000
0:29:33 > 0:29:37'and a further £10,000 spent on the refurbishment so far,
0:29:37 > 0:29:43'that makes a total spend of £200,000 plus the usual fees and expenses.
0:29:43 > 0:29:47'So, have Carolyn and her husband added any value to the cottage?
0:29:47 > 0:29:51'We invited two local property experts for their perspective.'
0:29:51 > 0:29:53The improvements are very good.
0:29:53 > 0:29:58It appears to be a lot lighter than when I was here last time.
0:29:58 > 0:30:04It did feel a little oppressive when you came in, but that's all changed.
0:30:04 > 0:30:06They made a really good job
0:30:06 > 0:30:09of maximising the letting potential of the cottage.
0:30:09 > 0:30:13It's got everything in the right places and the right scale.
0:30:13 > 0:30:17'This holiday was bought as a holiday let investment.
0:30:17 > 0:30:19'So, after the refurbishment,
0:30:19 > 0:30:24'how much could they hope to get for it per week?'
0:30:24 > 0:30:29In peak season, per week, £750 to £800 as a holiday let.
0:30:29 > 0:30:32On a weekly basis, height of the holiday season,
0:30:32 > 0:30:37the cottage would probably attract the better part of £800 per week.
0:30:37 > 0:30:41If you take the front out and have the parking right by the door,
0:30:41 > 0:30:43as much as £900 per week.
0:30:43 > 0:30:48I'd be very happy with that. Yeah. Earn its keep.
0:30:48 > 0:30:54'If they decided to rent this out in the more traditional sense, how much could they get per month?'
0:30:54 > 0:31:00Per calendar month, you're looking at around £650 to £700.
0:31:00 > 0:31:08I'd expect the cottage to achieve something in the region of £600, maybe £625 per calendar month.
0:31:08 > 0:31:13'Obviously, they have no intention of selling this on any time soon.
0:31:13 > 0:31:17'If circumstances changed and they were to put it up for sale,
0:31:17 > 0:31:20'how much could the property achieve?'
0:31:20 > 0:31:23The resale value is around £220,000.
0:31:23 > 0:31:29As it stands today, the property has a value in the region of £220,000.
0:31:29 > 0:31:34If they get permission to dig out the front and put parking right here
0:31:34 > 0:31:38that value could increase to £240,000.
0:31:38 > 0:31:41I'm not selling, but I think that's realistic.
0:31:41 > 0:31:47'Things seem to have gone smoothly for Carolyn and Richard's first investment property.
0:31:47 > 0:31:49'Are there plans for more?'
0:31:49 > 0:31:52We'd certainly consider more properties.
0:31:52 > 0:31:58Something perhaps a little closer to home, rather than a four-hour drive each way.
0:31:58 > 0:32:00I wouldn't rule that out for the future.
0:32:03 > 0:32:06'I'm in Islington, north London,
0:32:06 > 0:32:10'a metropolitan area with easy access to the centre of the city.
0:32:10 > 0:32:13'But it wasn't always like this.
0:32:13 > 0:32:17'Originally, an agricultural village on the fringes of London,
0:32:17 > 0:32:22'its main function was as a stop-off for cattle on their way to market.
0:32:22 > 0:32:27'It might be more cars than cows, but it's a popular place to live.'
0:32:27 > 0:32:31The property I'm here to see is in this block of flats.
0:32:31 > 0:32:35They were built, the whole estate was, to house police workers.
0:32:35 > 0:32:39They're now being sold as individual units.
0:32:39 > 0:32:43The one I'm here to see, three bedrooms, guide price 325,000 quid.
0:32:43 > 0:32:46Let's take a look.
0:32:49 > 0:32:52'Although the building might not win architectural awards,
0:32:52 > 0:32:56'it does benefit from a green at the front.
0:32:56 > 0:33:02'Appearance wise, it's not a great start, but for a guide price of 325 grand for a flat
0:33:02 > 0:33:06'surely you'd expect something enticing inside.'
0:33:06 > 0:33:11If you're not from London, there's a few things you've got to understand.
0:33:11 > 0:33:15This is a very desirable part of the capital.
0:33:15 > 0:33:21So you don't really get a heck of a lot for your money but bear with me.
0:33:21 > 0:33:26Front room there. Kitchen there. Then down this corridor
0:33:26 > 0:33:30which, to my mind, takes up a bit too much space.
0:33:30 > 0:33:32Bathroom there, then three bedrooms.
0:33:32 > 0:33:36You're looking for more? There isn't any.
0:33:36 > 0:33:40Still, remember, smart part of London.
0:33:41 > 0:33:45'It's not pretty but it's got potential.
0:33:45 > 0:33:51'Getting rid of that sofa will free up some space in the hall.
0:33:51 > 0:33:56'Once you have a good look around, the layout works well.
0:33:56 > 0:33:58'There's a lot of light. The bedrooms are doubles.
0:33:58 > 0:34:03'The flat's in poor condition and the decor is tatty, but structurally
0:34:03 > 0:34:06'everything seems in good shape.'
0:34:06 > 0:34:11They say that a kitchen is the heart of any home.
0:34:11 > 0:34:18If that's the case, then this flat is not so culinary as having a bit of a coronary.
0:34:18 > 0:34:20Yes. Not ideal.
0:34:20 > 0:34:26'With the rest feeling spacious, it's a shame to be let down by the kitchen.
0:34:26 > 0:34:31'But a change of layout, new units, some sparkling white goods
0:34:31 > 0:34:36'and you never know, the heart could learn to beat again.'
0:34:40 > 0:34:44The lounge is a major selling point for this property.
0:34:44 > 0:34:48A good size. Needs a few features being updated.
0:34:48 > 0:34:51Like the gas fire there.
0:34:51 > 0:34:53But you've got a lot of light coming in.
0:34:53 > 0:34:57Views over the gardens and somebody else's garden.
0:34:57 > 0:34:59At least you've got a balcony.
0:34:59 > 0:35:04It needs cosmetic work, certainly the kitchen and bathroom,
0:35:04 > 0:35:08but not too bad - for the money.
0:35:08 > 0:35:14'And that guide price of 325 grand is growing on me, too.'
0:35:14 > 0:35:17- # You're really growing on me - I'm really growing on you
0:35:17 > 0:35:22- # You're really growing on me - I'm really growing on you... #
0:35:25 > 0:35:30What else? It's a flat so there are costs associated with owning it.
0:35:30 > 0:35:37£500 a year is the management charge, so not too bad. The ground rent is only £1 a year.
0:35:37 > 0:35:40The property is leasehold but nine years ago
0:35:40 > 0:35:45that lease was renewed so it's now 125 years, minus nine years.
0:35:45 > 0:35:48That is really nothing to worry about.
0:35:48 > 0:35:51'So, that's the lowdown.
0:35:51 > 0:35:54'But with a guide price of 325,000,
0:35:54 > 0:35:57'what does a local estate agent make of it?'
0:35:57 > 0:36:03It needs a lot of work doing to it but the structure is very good,
0:36:03 > 0:36:09the room proportions are very good, it just seems like cosmetic stuff.
0:36:09 > 0:36:12'With a little help in the looks department,
0:36:12 > 0:36:16'could this be an attractive investment for sale or rental?'
0:36:16 > 0:36:19Flats are popular in Islington.
0:36:19 > 0:36:22This place is going to appeal to sharers.
0:36:22 > 0:36:29When you're living in an expensive part of London, being able to share the rent or purchase price is key.
0:36:29 > 0:36:34'How much rental return could you achieve on a flat like this?'
0:36:34 > 0:36:39Somewhere in the region of about £2,000 per calendar month.
0:36:39 > 0:36:44'If it was renovated and resold, how much might you expect to make?'
0:36:44 > 0:36:51Refurbished to a decent standard, you could look at a resale value of between £430,000 to £450,000.
0:36:51 > 0:36:57If you can look past the condition and forgive the fact that there's no outside space,
0:36:57 > 0:37:00I think it could be interesting to go for.
0:37:00 > 0:37:05Let's see who agreed when it went under the hammer.
0:37:05 > 0:37:09A second-floor, three-bed, purpose-built flat.
0:37:09 > 0:37:11Needs a bit of upgrading.
0:37:11 > 0:37:14Over to you. 300, then?
0:37:14 > 0:37:17300 sitting down. 305?
0:37:17 > 0:37:22305. 310. 315. 320.
0:37:22 > 0:37:25325? 330?
0:37:27 > 0:37:30335? 340?
0:37:30 > 0:37:33345? 350?
0:37:35 > 0:37:38355? 360?
0:37:38 > 0:37:40365?
0:37:40 > 0:37:42370!
0:37:42 > 0:37:44375?
0:37:45 > 0:37:47376?
0:37:47 > 0:37:50377?
0:37:50 > 0:37:52378?
0:37:52 > 0:37:54379?
0:37:54 > 0:37:57380? 381 on the phone?
0:37:59 > 0:38:01382?
0:38:02 > 0:38:05382, new spot. 383?
0:38:06 > 0:38:09384? 385?
0:38:09 > 0:38:13386? 387 on the phone?
0:38:13 > 0:38:16388? 389?
0:38:16 > 0:38:18390?
0:38:19 > 0:38:22391 on the phone?
0:38:22 > 0:38:24392 in the room?
0:38:25 > 0:38:29If not, 391 to the phone. First time...
0:38:29 > 0:38:32392 in the room.
0:38:32 > 0:38:33393?
0:38:35 > 0:38:40392 in the room. Anyone else? 392 first time.
0:38:40 > 0:38:42Second time. Going to lose it.
0:38:42 > 0:38:46Third and last time, if you're all done. Sold.
0:38:46 > 0:38:48392.
0:38:48 > 0:38:53'Well, he almost let it go but after a last-minute decision,
0:38:53 > 0:38:57'the successful bid of £392,000 was placed by Yemi.
0:38:57 > 0:39:01'He's an acquisitions agent and bought it on behalf of a client.
0:39:01 > 0:39:07'I met him to discuss what he's got planned for this purchase.'
0:39:07 > 0:39:11- Congratulations.- Thank you.- Tell me why you wanted to buy the flat.
0:39:11 > 0:39:16We bought for a client. He was looking for a good location close to the City.
0:39:16 > 0:39:21What was the remit that you had? What property was he looking for?
0:39:21 > 0:39:25Something with a good cash flow, a good rental income.
0:39:25 > 0:39:32- In a good location with proper equity appreciation.- Right.
0:39:32 > 0:39:37- Why did you pick this place for him or her?- I love the location.
0:39:37 > 0:39:42I love the square. It's not the best property in the neighbourhood.
0:39:42 > 0:39:46Close to the station, close to the City,
0:39:46 > 0:39:48the high street shops and all that.
0:39:48 > 0:39:52- And very expensive houses about. - Yes.
0:39:52 > 0:39:54# I'm a fixer
0:39:54 > 0:39:57# And I've only just begun
0:39:59 > 0:40:04# I just snap my fingers And the fixer gets it done. #
0:40:04 > 0:40:09'It's about location and a good rental income for Yemi and his client.
0:40:09 > 0:40:13'What do they intend to do here?'
0:40:13 > 0:40:17We're looking at fitting in a second WC
0:40:17 > 0:40:19and making the big room an en suite.
0:40:19 > 0:40:22Wow. Putting an en suite in. That'll be nice.
0:40:22 > 0:40:26Another thing we're going to do is change the system.
0:40:26 > 0:40:33The heating system at the moment is the tank system. We're changing it to a combi system.
0:40:33 > 0:40:35- Create a bit of extra space.- Yes.
0:40:35 > 0:40:39The kitchen, not ideal. What are you going to do with that?
0:40:39 > 0:40:42We'll update the kitchen.
0:40:42 > 0:40:47Change the floors to wood floors in the hallway and the living room.
0:40:47 > 0:40:50- And new carpets, new decor.- Right.
0:40:50 > 0:40:55- What kind of cost is it coming in at?- We're looking at 20.- 20.
0:40:55 > 0:40:58- What kind of timescale? - Three, four weeks, max.
0:40:58 > 0:41:02- Three or four weeks?- Yes. - Quick in and get it sorted?- Yes.
0:41:02 > 0:41:08- Is the idea to get a tenant in...? - Yes. We have interest already but we'd rather update the flat.
0:41:08 > 0:41:14'I think £20,000 is a healthy budget but three to four weeks is tight.
0:41:14 > 0:41:16'Yemi seems confident though
0:41:16 > 0:41:21'that with builders who work on his projects he'll meet the deadline.
0:41:21 > 0:41:28'He thinks it's worth the investment for the postcode alone, as his client was only too aware.'
0:41:28 > 0:41:34- What did you think about the price? It went above the guide price. - The client wanted it.
0:41:34 > 0:41:37And he was there at the auction on the day.
0:41:37 > 0:41:44He went slightly over our... our budget. About 10,000 over.
0:41:44 > 0:41:48- Right.- But we paid the premium for the area.- Great.
0:41:48 > 0:41:51- Congratulations. Good luck with it. - Thank you.
0:41:51 > 0:41:55Well, as the old adage goes, it's all about location.
0:41:55 > 0:42:01Islington seems to have fared pretty well in the tough market conditions of late.
0:42:01 > 0:42:06It's a lot of money, and there's more to spend on the refurbishment.
0:42:06 > 0:42:12How will the valuations stack up once it's completed? Find out later in the show.
0:42:15 > 0:42:20We hope our buyers set themselves realistic timescales and budgets.
0:42:20 > 0:42:26There is only one way to find out - catch up with them after all the hard work.
0:42:26 > 0:42:32'Earlier, we were in Staffordshire in the village of Norton.
0:42:32 > 0:42:37'We met local couple Tom and Rose, looking to down-size from their family home.
0:42:37 > 0:42:41'They'd bought this one-bedroom bungalow for 75,000.
0:42:41 > 0:42:45'What they got was a hole in the ceiling and damp,
0:42:45 > 0:42:47'damp, damp.
0:42:47 > 0:42:52'A challenge for anyone, but especially for a retired couple.'
0:42:52 > 0:42:59You're supposed to be taking long holidays and you've taken a project like this. What are you thinking?
0:42:59 > 0:43:03- I think we needed motivating. - Did you?- Yeah.- Why's that?
0:43:03 > 0:43:05Because we spend a lot of time doing nothing.
0:43:05 > 0:43:11You need a project, you need something to look forward to.
0:43:11 > 0:43:17- Tom, do you agree, or do you enjoy doing nothing? - I do enjoy reading me paper.
0:43:19 > 0:43:25'Tom and Rose hoped to move in when work was completed on their four-month schedule.
0:43:25 > 0:43:32'But nine months later we got the call to say that their renovation was breaking news.
0:43:34 > 0:43:38'It's turned out to be much more than just a renovation.
0:43:38 > 0:43:42'The bungalow has an entrance on a side extension
0:43:42 > 0:43:46'and a first floor has been added - truly impressive.
0:43:46 > 0:43:48'And inside...
0:43:48 > 0:43:52'that extension means that the old bedroom
0:43:52 > 0:43:55'is a large lounge with front and back aspects.
0:43:57 > 0:44:02'The former lounge is a dining room and a corridor from the front door.
0:44:04 > 0:44:07'The kitchen still has some way to go.
0:44:10 > 0:44:15'The old bathroom is transformed into a smart and modern shower room.
0:44:16 > 0:44:20'Tom and Rose are rightly proud of their hard graft.'
0:44:20 > 0:44:22This is the new extension.
0:44:22 > 0:44:26Here we have a recess.
0:44:26 > 0:44:31The front door comes into the hall here.
0:44:31 > 0:44:36I thought it nice, rather than coming straight into the lounge.
0:44:36 > 0:44:40The French windows I particularly like because of the patio area
0:44:40 > 0:44:43that hopefully we will have.
0:44:43 > 0:44:49It's a south-facing wall, so when the sun shines we get it all day.
0:44:49 > 0:44:53As you can see, it's nice, it's light, it's bright.
0:44:53 > 0:44:57And when the furnishings are in, the curtains, carpets,
0:44:57 > 0:44:59I think it'll be nice.
0:44:59 > 0:45:04'From outside the living room, you see how impressive the extension is.
0:45:04 > 0:45:07'What a difference an extra floor makes!
0:45:07 > 0:45:11'Back inside, a new staircase leads up to two bedrooms -
0:45:11 > 0:45:13'a double
0:45:13 > 0:45:16'and an even larger double-size bedroom.
0:45:16 > 0:45:19'And also there's a new bathroom.'
0:45:19 > 0:45:25It's virtually a new building - all new, all the woodwork, the roof.
0:45:25 > 0:45:31All the walls, completely new. Every bit of timber in the house is new.
0:45:31 > 0:45:34Except the floorboards downstairs.
0:45:36 > 0:45:39'That's not my idea of down-sizing.
0:45:39 > 0:45:44'What made Tom and Rose throw away their original plans?'
0:45:44 > 0:45:50The architect came up with such a good plan we decided to go with it.
0:45:50 > 0:45:54'With their finances bolstered by some investments maturing,
0:45:54 > 0:45:57'they decided to go for a full loft extension.
0:45:57 > 0:46:01'They were taking to developing like ducks to water -
0:46:01 > 0:46:03'and there was plenty of that!'
0:46:03 > 0:46:08Because it was so wet, we had to take most of the floorboards up
0:46:08 > 0:46:14to dry out because all the joists underneath were wet.
0:46:14 > 0:46:17So that was quite a big thing.
0:46:17 > 0:46:20And then we put it back together.
0:46:20 > 0:46:26Then they took the roof off and then it rained and rained and everything got wet again.
0:46:27 > 0:46:33# I can't stand the rain against my window... #
0:46:33 > 0:46:38'Everything seems right as rain now and there are no holes in the roof.
0:46:38 > 0:46:43'The work was a family effort, and Tom and Rose were glad of the help,
0:46:43 > 0:46:47'especially as the project was bigger than expected.'
0:46:47 > 0:46:50This is part of the new building.
0:46:50 > 0:46:53The bathroom is all completely new.
0:46:53 > 0:46:57My brother gave me a hand doing the tiling.
0:46:57 > 0:47:01I finished off with the plumbing with his help as well.
0:47:01 > 0:47:05'Builders were contracted to do the build,
0:47:05 > 0:47:08'while Tom and Rose's son did the electrical work.
0:47:08 > 0:47:11'Apart from finishing off the kitchen,
0:47:11 > 0:47:16'reinstating the lean-to and turfing the garden,
0:47:16 > 0:47:19'there's not much else to do before they can move in.
0:47:19 > 0:47:23'So, with the job taking nine months, five more than planned,
0:47:23 > 0:47:26'was Tom pleased with Rose's retirement project?
0:47:26 > 0:47:29'What were his favourite moments?'
0:47:29 > 0:47:33There wasn't any. It was a nightmare.
0:47:33 > 0:47:37'Don't worry, Tom. You'll soon be back to that newspaper.
0:47:37 > 0:47:40'But one good thing has come out of it.'
0:47:40 > 0:47:44I've lost a bit of weight. That's the best thing for me.
0:47:44 > 0:47:47'Tom has found a new weight-loss programme
0:47:47 > 0:47:53'but when it comes to losing pounds, surely this took the biscuit.
0:47:53 > 0:47:58'The original budget for a much smaller extension was 15,000.'
0:47:58 > 0:48:02The thing snow-balled, with going up in the roof.
0:48:02 > 0:48:08You've got to be looking at 50,000, so it's gone a lot over.
0:48:10 > 0:48:14'Tom and Rose bought the bungalow for 75,000,
0:48:14 > 0:48:20'so that 50-grand renovation pushes their total outlay to 125,000.
0:48:20 > 0:48:26'Time to find out what two local estate agents think of their efforts.'
0:48:28 > 0:48:33Really impressed with the property. It's been completely transformed.
0:48:33 > 0:48:38By the standard of what they've done it's going to be a fantastic job.
0:48:42 > 0:48:49I think the property has been done to a really good standard. It's almost like a new-build.
0:48:49 > 0:48:54On completion, it'll be ready to move straight into.
0:48:54 > 0:48:58My favourite bit has got to be the lounge.
0:48:58 > 0:49:01It's different than your standard square box.
0:49:01 > 0:49:06There's plenty of light. It's got nice views of the back garden.
0:49:06 > 0:49:12'Having spent 125,000, what could they get if they decide to sell it?'
0:49:13 > 0:49:20On the open market, I'd recommend an asking price of £149,950.
0:49:20 > 0:49:26On the sales market, I would estimate an asking price in the region of £150,000.
0:49:26 > 0:49:30It's not a seller's market at the moment.
0:49:30 > 0:49:35It's a buyer's market, so they'd try to knock you down, I would think.
0:49:35 > 0:49:40'If they chose to rent it out, they could expect £600 a calendar month.
0:49:42 > 0:49:45'But they've no plans to do that.
0:49:45 > 0:49:51'From a modest bungalow, they've created a lovely two-bedroom house to call home.
0:49:51 > 0:49:55'And they seem to have made a decent investment into the bargain.
0:49:55 > 0:49:59'It's time they put their feet up and enjoyed the benefits.
0:49:59 > 0:50:03'What does Rose think the future holds?'
0:50:03 > 0:50:08Sitting in there with the sun shining through those patio windows.
0:50:08 > 0:50:10Hopefully!
0:50:15 > 0:50:18'Now we're back in Islington, north London,
0:50:18 > 0:50:24'where this spacious but shabby three-bed flat sold for £392,000 at auction.
0:50:24 > 0:50:30'I met Yemi, an acquisitions agent who bought it on behalf of a client
0:50:30 > 0:50:33'who was hoping for good returns on his investment.'
0:50:33 > 0:50:37- Tell me why you wanted to buy it. - We bought for a client.
0:50:37 > 0:50:40He was looking for a good location, close to the City.
0:50:40 > 0:50:45What was the remit? What kind of property was he looking for?
0:50:45 > 0:50:49Something with a good cash flow, a good rental income,
0:50:49 > 0:50:55in a good location with proper equity appreciation.
0:50:55 > 0:51:00'Yemi was under pressure to stick to a budget and turn it around
0:51:00 > 0:51:04'to make sure the flat was earning money for his client.
0:51:04 > 0:51:09'So we're back just five weeks later to see how he got on.
0:51:15 > 0:51:20'Yemi has banished the heartache that was the old kitchen
0:51:20 > 0:51:22'and brought the space back to life
0:51:22 > 0:51:25'with contemporary units and a stylish finish.'
0:51:28 > 0:51:31We were able to update the kitchen,
0:51:31 > 0:51:35create more room, give it a city feel.
0:51:35 > 0:51:40'The living room looks much better, having been completely redecorated.
0:51:40 > 0:51:45'The old fireplace has been removed and the walls given a lick of paint.
0:51:45 > 0:51:49'New wooden floors help create a smart living space.
0:51:49 > 0:51:53'The hallway needed sprucing up and with a paint job and flooring,
0:51:53 > 0:51:57'it's now a bright and inviting entrance way.
0:51:57 > 0:52:01'Yemi got rid of the old airing cupboard to make a new shower room.
0:52:01 > 0:52:05'It's an economic and stylish use of space.'
0:52:05 > 0:52:09Taking out the airing cupboard really enhanced the flat.
0:52:09 > 0:52:15A three-bed flat could do with two utilities, and that's what we were able to get.
0:52:15 > 0:52:18'Which leads us on to Yemi's second stroke of genius.
0:52:18 > 0:52:20'That sofa's been banished
0:52:20 > 0:52:24'and the separate toilet and bathroom blocked off
0:52:24 > 0:52:27'to create an en suite in the first bedroom.
0:52:27 > 0:52:30'Sticking to the same style as the main bathroom,
0:52:30 > 0:52:33'the en suite is a welcome addition.
0:52:33 > 0:52:38'The creation of a second bathroom in a small space is fantastic.
0:52:38 > 0:52:42'The en suite bedroom just needed refreshing.
0:52:42 > 0:52:47'New carpet and light walls have done just that.
0:52:47 > 0:52:49'Bedroom two needed brightening up.
0:52:49 > 0:52:54'With a lick of paint and new carpet it looks modern and clean.
0:52:54 > 0:53:00'The third bedroom is small but with a new carpet and decoration,
0:53:00 > 0:53:04'it feels lovely and light now.
0:53:04 > 0:53:07'So, this place feels completely different.
0:53:07 > 0:53:11'It's a much more contemporary living space.
0:53:11 > 0:53:16'It seems that Yemi's done a great job. Did he encounter any problems?'
0:53:16 > 0:53:20The neighbours were not happy works being done on Saturdays.
0:53:20 > 0:53:24So that we lost a day a week on that basis.
0:53:24 > 0:53:28But we got by pretty well.
0:53:28 > 0:53:32'Yemi's fixed it to make sure everything worked out.'
0:53:33 > 0:53:36# I just snap my fingers
0:53:36 > 0:53:38# And the fixer gets it done. #
0:53:40 > 0:53:43'Job done, Yemi.
0:53:43 > 0:53:49'He's done this place up very efficiently. What's the secret to his success?'
0:53:49 > 0:53:57To have builders that deliver on time and would not cut corners, I think is a plus.
0:53:57 > 0:54:02'Having a good team is an advantage when it comes to renovations.
0:54:02 > 0:54:05'Yemi's contacts and experience paid off.
0:54:05 > 0:54:08'When we first saw the property, he estimated
0:54:08 > 0:54:12'the project would take about a month and cost £20,000.
0:54:12 > 0:54:18'Now the work's finished, how are those targets looking?'
0:54:18 > 0:54:23We actually saved cost. It cost less than £17,000.
0:54:23 > 0:54:28And the project was delivered in three weeks.
0:54:28 > 0:54:34'Yemi's client paid £392,000 for the property plus another £14,000
0:54:34 > 0:54:36'in fees and stamp duty.
0:54:36 > 0:54:40'Adding the £17,000 cost of the renovation
0:54:40 > 0:54:43'brings his total outlay to £423,000.
0:54:43 > 0:54:45'Was it a wise investment?
0:54:45 > 0:54:51'We invited two local property experts for their views.'
0:54:51 > 0:54:54They've done a really good job with the refurbishment.
0:54:54 > 0:54:56The addition of a second bathroom
0:54:56 > 0:54:59is key if they're looking at professional sharers.
0:54:59 > 0:55:02It's a good level of finish and very appealing.
0:55:02 > 0:55:07I think it's been refurbished to a fairly high standard.
0:55:07 > 0:55:09It's got an en suite, a bathroom,
0:55:09 > 0:55:12wood flooring, it's in the right area.
0:55:12 > 0:55:18I like the kitchen. Neutral colours. It should sell quite easily.
0:55:18 > 0:55:22'Yemi's client always intended this flat to be rented out.
0:55:22 > 0:55:29'So, according to the experts, how much rental return could they expect per calendar month?'
0:55:29 > 0:55:33I would put it on the market for £2,000 per calendar month.
0:55:33 > 0:55:39This property can be rented out per calendar month for £2,400.
0:55:39 > 0:55:44'That's an impressive maximum yield of just under 7%.
0:55:44 > 0:55:48'Will it be enough to keep Yemi's client happy?'
0:55:48 > 0:55:53He's exceeded our expectations at 2,400.
0:55:53 > 0:55:55'If they changed their mind
0:55:55 > 0:56:01'and put the flat up for sale what could they hope to get?'
0:56:01 > 0:56:05Somewhere in the region of £430,000.
0:56:05 > 0:56:11This property we would market at about £465,000.
0:56:11 > 0:56:13Looking to realise about 450 to 455.
0:56:13 > 0:56:21Not bad. Not bad for an investment you bought five weeks ago.
0:56:21 > 0:56:25'So, with the flat now finished, on time and within budget,
0:56:25 > 0:56:28'how does Yemi's client rate the experience?'
0:56:28 > 0:56:30The client is very happy.
0:56:30 > 0:56:36He's happy because the flat's come out good in a short time frame.
0:56:36 > 0:56:41He's convinced, as we are, that we'll be able to get good tenants
0:56:41 > 0:56:46that will take care and appreciate the money he put into it.
0:56:48 > 0:56:51Those stories have been added to our Hammer archives.
0:56:51 > 0:56:56We'll have plenty more next time on Homes Under The Hammer.
0:56:56 > 0:56:58- Goodbye.- Goodbye.
0:57:16 > 0:57:19Subtitles by Red Bee Media Ltd
0:57:19 > 0:57:22E-mail subtitling@bbc.co.uk