0:00:02 > 0:00:05Since the show started, we've seen thousands of people buy at auction.
0:00:05 > 0:00:08We love bringing you those stories.
0:00:08 > 0:00:10But it can be a bumpy ride,
0:00:10 > 0:00:13so fasten your seat belt as we head to the auctions.
0:00:38 > 0:00:41This programme isn't only about bricks and mortar.
0:00:41 > 0:00:44It's about real people who have got a tale to tell.
0:00:44 > 0:00:48So how did they get on? Was it a dream or a nightmare?
0:00:48 > 0:00:51Let's find out what happened when they bought stuff under the hammer.
0:00:52 > 0:00:57'This sunny house in Perthshire has me nearly lost for words.'
0:00:58 > 0:01:01Who ever... I mean, I've never... I mean, what were they thinking?
0:01:02 > 0:01:06'In London, this three-bedroom flat has great potential.'
0:01:06 > 0:01:10You know, once decorated, it could be quite a good flat.
0:01:10 > 0:01:11It's bigger than I thought.
0:01:12 > 0:01:17'And there are no complaints about this shop and flat in Devon.'
0:01:17 > 0:01:22A really good-size, spacious, two-bedroom flat. Good news.
0:01:23 > 0:01:26'All these properties have been sold at auction.
0:01:26 > 0:01:29'We find out who bought them and what they paid
0:01:29 > 0:01:30'when they went under the hammer.'
0:01:30 > 0:01:32Sold. 183. Well bid.
0:01:37 > 0:01:41Sir Walter Scott once said that if an intelligent stranger
0:01:41 > 0:01:45were asked to describe the most beautiful province in Scotland,
0:01:45 > 0:01:50it's probable that they would name the county of Perth.
0:01:50 > 0:01:53And you have to say... he had a point.
0:01:53 > 0:01:58'Perthshire's scenery proved so popular with the Victorians,
0:01:58 > 0:02:02'they established a tourist resort in the bustling town of Pitlochry.
0:02:02 > 0:02:05'And the area still thrives today.'
0:02:05 > 0:02:09I'm three miles outside Pitlochry in a little hamlet called Kinnaird,
0:02:09 > 0:02:12here to see something that used to be an old chapel.
0:02:12 > 0:02:17At a guide price of 70,000 quid, 150 years old,
0:02:17 > 0:02:20what am I going to find inside?
0:02:20 > 0:02:24'From the outside, this unusual stone cottage is very eye-catching.
0:02:24 > 0:02:27'You might not find the red-and-white colour scheme divine,
0:02:27 > 0:02:29'but it certainly stands out.
0:02:29 > 0:02:32'Now split into three different dwellings,
0:02:32 > 0:02:34'this building used to be the local chapel.
0:02:34 > 0:02:39'So let's see if it's still blessed with any of its original features.'
0:02:39 > 0:02:42Whoa! Wonderful, big old door.
0:02:42 > 0:02:46But I have to say it doesn't look like there's much else left
0:02:46 > 0:02:48from the former chapel.
0:02:48 > 0:02:51Loo there, kitchen in there - everything's in a bit of a state.
0:02:51 > 0:02:53Utility area here.
0:02:53 > 0:02:56This is more like it. A really nice, big front living room.
0:02:56 > 0:03:01But here's an indication of what's happened to it in, I guess, the recent history.
0:03:01 > 0:03:04It's been blocked up. I guess once this was all one big chapel
0:03:04 > 0:03:07and it's been separated off from the neighbouring property.
0:03:07 > 0:03:12Work to be done but, as a space, I like it.
0:03:13 > 0:03:15'Yes, it's an impressive start.
0:03:15 > 0:03:17'The kitchen is huge,
0:03:17 > 0:03:19'although to say it needs modernisation
0:03:19 > 0:03:21'is a serious understatement.
0:03:21 > 0:03:25'Up these incredibly steep stairs is a great-sized front bedroom,
0:03:25 > 0:03:28'which has retained some period features.
0:03:28 > 0:03:30'I think that's an original fireplace
0:03:30 > 0:03:33'lurking under that ugly radiator.
0:03:34 > 0:03:39'And the bathroom is OK but in need of an interior design rethink.'
0:03:39 > 0:03:43So upstairs, the second of the two bedrooms.
0:03:43 > 0:03:47And look at this. How nice. Some cupboards.
0:03:49 > 0:03:50That's what I thought.
0:03:50 > 0:03:54Open one up, though, and fans of CS Lewis...
0:03:55 > 0:03:57eat your heart out.
0:04:00 > 0:04:03You don't find Narnia when you walk through here.
0:04:03 > 0:04:04What you do find is the annex.
0:04:04 > 0:04:07Now, who ever... I mean, I've never...
0:04:07 > 0:04:11I mean, what were they thinking, to build the entrance through a wardrobe?
0:04:11 > 0:04:13Absolutely extraordinary.
0:04:13 > 0:04:16So this space at the moment is, I have to say, fairly unusable.
0:04:16 > 0:04:18But the annex is this story here
0:04:18 > 0:04:21and the downstairs, but you can only access it from outside.
0:04:21 > 0:04:24If you want to integrate this with the rest of the property,
0:04:24 > 0:04:26major structural work has to be done.
0:04:26 > 0:04:29It's an extra useful bit of space
0:04:29 > 0:04:32but it doesn't really look at all like it's been done properly.
0:04:32 > 0:04:36Now, I'm off to try and find the witch and the lion.
0:04:36 > 0:04:37SONG: "The Lion Sleeps Tonight"
0:04:37 > 0:04:39'No sign of the witch,
0:04:39 > 0:04:42'but the lion may be somewhere in that jungle of a garden.
0:04:42 > 0:04:44'The outside space is a bit of a letdown,
0:04:44 > 0:04:47'but nothing that some green fingers couldn't fix.
0:04:47 > 0:04:50'So, with a guide price of £70,000,
0:04:50 > 0:04:53'what does an estate agent make of this property?
0:04:53 > 0:04:55'Is it magical, or a bit of a nightmare?'
0:04:56 > 0:04:58I think it needs a lot of work.
0:04:58 > 0:05:01But it's in a beautiful setting.
0:05:01 > 0:05:04That's going to be very appealing to a lot of people.
0:05:04 > 0:05:06But the work may put a lot of people off.
0:05:07 > 0:05:10'Yes, this one is a real undertaking,
0:05:10 > 0:05:13'but, once renovated, it could bring in a decent rental
0:05:13 > 0:05:15'of around £750 per month.
0:05:15 > 0:05:18'But there's surely a holiday let market in these parts.
0:05:18 > 0:05:20'So, what could it command?'
0:05:20 > 0:05:25As a holiday let, I could rent this property out at between £500 and £700 per week.
0:05:25 > 0:05:29'Not bad. But if you decided to sell on, once work was completed,
0:05:29 > 0:05:31'how much could you get for it?'
0:05:33 > 0:05:36Depending on the level of finish on the property,
0:05:36 > 0:05:40I would suspect you'd be looking at £160,000 to £170,000.
0:05:41 > 0:05:45Well, a house with a room that you access through a wardrobe.
0:05:45 > 0:05:47It's certainly a first for me.
0:05:47 > 0:05:51But could this property be a fairy-tale place to live?
0:05:51 > 0:05:53It'll take a bit of money to sort it out.
0:05:53 > 0:05:55But who had the lion heart to take it on?
0:05:55 > 0:05:58Let's find out when it went under the hammer.
0:05:58 > 0:06:01'This lot came up later in the day.'
0:06:01 > 0:06:04I have a proxy bid on this property, ladies and gentlemen,
0:06:04 > 0:06:06for someone who can't be here today.
0:06:06 > 0:06:10I will start the bidding with that proxy bidder at £60,000.
0:06:10 > 0:06:12£61,000. Thank you, sir. At 61.
0:06:12 > 0:06:14Anyone else in the room?
0:06:14 > 0:06:17£61,000 I've got. The gentleman here. At £61,000.
0:06:17 > 0:06:19No? I'll go 62 with the proxy bidder, then.
0:06:19 > 0:06:2363? At 63. £64,000.
0:06:23 > 0:06:2665. 66. 67.
0:06:26 > 0:06:2968. 69. £70,000.
0:06:29 > 0:06:3171.
0:06:31 > 0:06:3472. 73. 74.
0:06:34 > 0:06:3775. 76.
0:06:37 > 0:06:4077. I can go £77,500.
0:06:40 > 0:06:4278, sir? £78,000.
0:06:42 > 0:06:46You'll be delighted to know the proxy bidder's out. £78,000.
0:06:46 > 0:06:50£79,000 at the back. At £79,000.
0:06:50 > 0:06:51£80,000.
0:06:51 > 0:06:54£80,000. There's a seated bid here at 80.
0:06:54 > 0:06:5581?
0:06:56 > 0:06:58£81,000.
0:06:58 > 0:07:00Shake of the head. At £81,000.
0:07:00 > 0:07:01I'll go 500 if it helps you, sir.
0:07:01 > 0:07:05£81,500.
0:07:06 > 0:07:08Thinking about it at the back.
0:07:08 > 0:07:10£81,500.
0:07:10 > 0:07:14£82,000. Definite shake of the head this time, sir?
0:07:14 > 0:07:17At £82,000 I'm going to sell. Give you one more chance.
0:07:17 > 0:07:18500 more? Definitely not?
0:07:18 > 0:07:21- £82,000. - HE BANGS THE GAVEL
0:07:21 > 0:07:25Sold at £82,000. Congratulations. And your bidding number is 104.
0:07:25 > 0:07:29'The successful bid of £82,000 was placed by Gail,
0:07:29 > 0:07:33'who bought it on behalf of herself and her husband, Peter.
0:07:33 > 0:07:36'Gail's retired and Peter runs his own software company.
0:07:36 > 0:07:39'They're currently this property's next-door neighbours,
0:07:39 > 0:07:41'so why did they buy it?
0:07:41 > 0:07:44'It was a lovely day when I met up with Peter for a chat on the lawn
0:07:44 > 0:07:46'in front of his beautiful home,
0:07:46 > 0:07:48'which also gave me a chance to admire it.'
0:07:50 > 0:07:53Peter, lovely to meet you. Congratulations.
0:07:53 > 0:07:56Before we talk about the property, what an amazing location!
0:07:56 > 0:07:58Tell me about this place.
0:07:58 > 0:08:01Gosh. Well, we bought it just about four years ago now
0:08:01 > 0:08:06and we've spent the last four years working on it, redecorating,
0:08:06 > 0:08:10and getting the place to a really comfortable, super little haven.
0:08:10 > 0:08:14Slightly different from what you bought, so tell me about that.
0:08:14 > 0:08:17- Oh, my goodness. - PETER LAUGHS
0:08:17 > 0:08:19Well, I suppose really
0:08:19 > 0:08:22it's what the supermarkets might call an impulse buy,
0:08:22 > 0:08:25because my wife went along to Glasgow -
0:08:25 > 0:08:27you saw her there, with a friend -
0:08:27 > 0:08:31and we knew the house was for sale and we'd had one quick look inside.
0:08:31 > 0:08:33We hadn't even seen all of the house.
0:08:33 > 0:08:39And she went along, and the price was lower than she expected,
0:08:39 > 0:08:42so she put her hand up by all accounts.
0:08:42 > 0:08:45- And now we have another house. - HE LAUGHS
0:08:45 > 0:08:48But why did you buy it?
0:08:48 > 0:08:51It's such a nice spot, a lot of people want to visit us,
0:08:51 > 0:08:54so it gives us extra accommodation for people to come and stay.
0:08:54 > 0:08:59Coming to a place like this, it's nice not to have to go back the same day, so they stay over.
0:08:59 > 0:09:02So that gives us a place just across the road from us
0:09:02 > 0:09:06and they can come in for breakfast or we have drinks or whatever.
0:09:06 > 0:09:08And it's a little bit separated
0:09:08 > 0:09:12but still a very nice environment for us all to be sociable.
0:09:12 > 0:09:14SONG: "You're My Best Friend" by Queen
0:09:17 > 0:09:21'But before he sends out the invitations, he's got work to do.
0:09:21 > 0:09:25'Since the auction, experts have discovered some hidden nasties,
0:09:25 > 0:09:27'including wet rot and dry rot.
0:09:27 > 0:09:30'The electrics and plumbing also need an overhaul,
0:09:30 > 0:09:35'so it could be a while before Peter's friends can book in to stay here.'
0:09:38 > 0:09:41So, what are you going to do with it?
0:09:41 > 0:09:45Having looked at the front, the more conventional part of the property,
0:09:45 > 0:09:51we're going to strip out all the electrics, strip out all the plumbing, completely redo that,
0:09:51 > 0:09:54redecorate, polish the floors probably,
0:09:54 > 0:09:55new kitchen, new bathroom...
0:09:55 > 0:09:58Just the normal stuff you'd expect to do there.
0:09:58 > 0:10:02We've already had a carpenter who's going to work with us come up,
0:10:02 > 0:10:06and I've got an architect coming in on Friday
0:10:06 > 0:10:08to look at any other options there.
0:10:08 > 0:10:10And there's the garden to deal with.
0:10:10 > 0:10:13It won't be our home, so we're doing it up at a good standard,
0:10:13 > 0:10:16but it will be very conventional at the end of the day.
0:10:16 > 0:10:18- Any ideas of costs? - HE CHUCKLES
0:10:18 > 0:10:19Probably not.
0:10:19 > 0:10:24A lot will depend on how bad the rot is that we've already seen.
0:10:24 > 0:10:29I guess, in our mind's eye, we see £20,000 to £40,000 as a region.
0:10:29 > 0:10:32Whether that's realistic or not, we'll have to see.
0:10:32 > 0:10:34Interesting set of goalposts there.
0:10:34 > 0:10:37Quite a lot of difference between £20,000 and £40,000.
0:10:37 > 0:10:40Well, we didn't buy it to get stressed.
0:10:40 > 0:10:46It was important that, if we were going to take this on, it wasn't going to rule our lives.
0:10:46 > 0:10:52So there is a wide variance there, and it would be nice if we were closer to £20,000 than £40,000.
0:10:52 > 0:10:55If it goes much beyond £40,000, we'll start stressing,
0:10:55 > 0:10:59but I doubt we'd need to go that far unless the rot's much worse than we think.
0:10:59 > 0:11:04'Peter's hoping the bulk of the renovation will be complete in two to four months.
0:11:04 > 0:11:08'When friends are not staying, they may rent the property out as a holiday let.
0:11:08 > 0:11:12'Assuming this is the stress-free project that Peter hopes,
0:11:12 > 0:11:15'is he thinking of making any more impulse buys?'
0:11:15 > 0:11:17HE LAUGHS
0:11:17 > 0:11:20Er, no, I don't think so. Er...
0:11:20 > 0:11:24No, this is probably... I hope this isn't a bridge too far.
0:11:24 > 0:11:25No, we've no real plans.
0:11:25 > 0:11:29We're trying to enjoy our later life, if you like.
0:11:29 > 0:11:32- Well, congratulations.- Thank you. - Good luck with it.
0:11:32 > 0:11:34- We look forward to seeing how you get on.- Thank you.
0:11:35 > 0:11:37What a great friend to have Peter is,
0:11:37 > 0:11:39because he'll buy you a place like this
0:11:39 > 0:11:42so you're comfortable when you come to stay.
0:11:42 > 0:11:44In terms of budget, we have people on the show
0:11:44 > 0:11:48who know down to the pound exactly how much they're going to spend.
0:11:48 > 0:11:51Peter? Somewhere between £20,000 and £40,000. What will it be?
0:11:51 > 0:11:54And will he and Gail enjoy sorting the place out?
0:11:54 > 0:11:56You can find out later in the show.
0:12:01 > 0:12:05'I'm in London, in the bustling area of Earlsfield.
0:12:05 > 0:12:08'It's got a desirable postcode in the south west of the capital.
0:12:08 > 0:12:10'So here's hoping we'll find a bargain.'
0:12:13 > 0:12:18I'm here to see a three-bedroom property. It had a guide of 170 grand.
0:12:18 > 0:12:20But it's not a house, it's a flat,
0:12:20 > 0:12:22and it's over a cafe.
0:12:22 > 0:12:24Never ideal.
0:12:24 > 0:12:28Let's take a look around and see what it's like on the inside.
0:12:28 > 0:12:30SONG: "Food For Thought" by UB40
0:12:32 > 0:12:35'Having a food outlet underneath a property
0:12:35 > 0:12:38'means there's a chance you might not get a mortgage on it
0:12:38 > 0:12:40'as there's a high risk of fire damage.
0:12:40 > 0:12:43'There could also be an issue with cooking smells,
0:12:43 > 0:12:46'which might put some buyers off.
0:12:46 > 0:12:49'Let's see how it looks inside.'
0:12:49 > 0:12:53It's a bit dated. You've got this marble-effect wallpaper.
0:12:53 > 0:12:57Looks a bit like an old-fashioned Swedish sauna down the end here.
0:12:57 > 0:13:01Look. You can see where somebody's had their guitar on the wall.
0:13:01 > 0:13:04I think it needs a whole big renovation job in here,
0:13:04 > 0:13:06although this is quite a good-size room.
0:13:06 > 0:13:08You've got some big windows to the front.
0:13:08 > 0:13:11Luckily... you can see they're double-glazed.
0:13:11 > 0:13:16You're really going to need that because that is a noisy road.
0:13:16 > 0:13:20But, you know, once decorated, it could be quite a good flat.
0:13:20 > 0:13:22It's bigger than I thought.
0:13:22 > 0:13:24SONG: "Guitar Man" by Elvis Presley
0:13:24 > 0:13:27# There ain't no room around here for a guitar man
0:13:27 > 0:13:29# We don't need a guitar man, son...#
0:13:29 > 0:13:32'Well, if the previous tenant WAS a rock-and-roll fan,
0:13:32 > 0:13:35'they certainly had plenty of space to strut their stuff.
0:13:35 > 0:13:37'As well as the generous living area,
0:13:37 > 0:13:40'there's also a bright and spacious bedroom on this floor.
0:13:40 > 0:13:45'But there's something about this flat that's got me "all shook up".'
0:13:45 > 0:13:50I can't quite put my finger on it but it doesn't feel level up here.
0:13:50 > 0:13:53Now, you can see there is a little crack down here.
0:13:53 > 0:13:56The door... well, it's sort of leaning away from the door frame.
0:13:56 > 0:13:58And then, in the kitchen at the back,
0:13:58 > 0:14:01you can see the wall has come away from the floor.
0:14:02 > 0:14:07You see, sloping floors and cracks could indicate subsidence.
0:14:07 > 0:14:09There are several ways it occurs.
0:14:09 > 0:14:12Many of them are out of your control, I'm afraid.
0:14:12 > 0:14:16You could be in an area with a high concentration of clay soil.
0:14:16 > 0:14:19Dry spells can cause movement in the clay,
0:14:19 > 0:14:22and that signals problems for your foundations.
0:14:22 > 0:14:27You'll need to employ a structural engineer to come out and assess the level of damage
0:14:27 > 0:14:30and propose a schedule of works to rectify this problem.
0:14:30 > 0:14:34So if I was buying this flat, I think I would get it checked out.
0:14:35 > 0:14:37'Next to the kitchen is a small bathroom
0:14:37 > 0:14:39'crying out for modernisation.
0:14:39 > 0:14:41'There's also a separate toilet.
0:14:41 > 0:14:43'It's a bit old-fashioned maybe
0:14:43 > 0:14:46'but could be a bonus if you're planning to let to tenants.
0:14:46 > 0:14:49'Upstairs there are two large, airy bedrooms,
0:14:49 > 0:14:54'but with big rooms like these come bigger heating bills.'
0:14:54 > 0:14:57Buyers are far more aware of energy costs these days,
0:14:57 > 0:15:00so insulate the walls, the floor and roof,
0:15:00 > 0:15:04and think about fitting a modern, energy-efficient boiler.
0:15:04 > 0:15:08A staggering amount of heat is lost through walls and loft spaces in our homes.
0:15:08 > 0:15:11So don't forget all of the unforeseen stuff.
0:15:11 > 0:15:13It can be a real marketing tool
0:15:13 > 0:15:16when it comes to renting or selling a property.
0:15:16 > 0:15:18SONG: "The Heat Is On" by Glenn Frey
0:15:21 > 0:15:23'Time to see what a local estate agent
0:15:23 > 0:15:27'makes of this flat and its location.'
0:15:27 > 0:15:30A great investment. Great location. You can walk to the station.
0:15:30 > 0:15:34There's a real buzz in Earlsfield of things going on - cafes, shops,
0:15:34 > 0:15:36little boutique shops.
0:15:36 > 0:15:38I think a lot of people would like it here.
0:15:38 > 0:15:42It's a younger generation flat once somebody's bought it and done it up.
0:15:43 > 0:15:45'Handy for local amenities, then.
0:15:45 > 0:15:49'But is the cafe downstairs a little close for comfort?'
0:15:49 > 0:15:54The shop is an issue, especially being a cafe underneath.
0:15:54 > 0:15:56Whoever buys this has to think seriously about that
0:15:56 > 0:16:00because on resales getting mortgages can be a bit difficult and tricky.
0:16:00 > 0:16:04So, if they're looking to re-sell the property at some point,
0:16:04 > 0:16:05look into that for the client
0:16:05 > 0:16:08and get a few ideas of where they can go for the mortgage
0:16:08 > 0:16:11to tell the agent they use to sell it for them.
0:16:14 > 0:16:17'This flat seems to be a prime rental opportunity.
0:16:17 > 0:16:20'But what could it make once done up?'
0:16:22 > 0:16:27It's a really good size. I think, in terms of rental, you'd be looking at around £1200 a month.
0:16:27 > 0:16:30'Bearing in the mind the guide price of £170,000,
0:16:30 > 0:16:33'what does the expert make of its resale potential?'
0:16:33 > 0:16:35# The heat is on
0:16:36 > 0:16:38# It's on the street...#
0:16:38 > 0:16:42When the property's renovated, I think you'd be looking at around £300,000.
0:16:43 > 0:16:45A flat above a food outlet.
0:16:45 > 0:16:49I've got to be honest and admit that this is not one of my favourite auction lots.
0:16:49 > 0:16:52It's always going to be difficult to obtain a mortgage here
0:16:52 > 0:16:55and I don't think it's going to be a good one to flip and sell on.
0:16:55 > 0:16:58But I do think it'll be a good rental.
0:16:58 > 0:17:02Somebody wanted it. Let's find out who that was as we go to auction.
0:17:05 > 0:17:07So, 150 anywhere?
0:17:08 > 0:17:11150 with you. Anyone else?
0:17:11 > 0:17:12155.
0:17:13 > 0:17:14160.
0:17:14 > 0:17:16165.
0:17:16 > 0:17:18170.
0:17:19 > 0:17:20175.
0:17:20 > 0:17:21180.
0:17:22 > 0:17:23185.
0:17:25 > 0:17:27190.
0:17:28 > 0:17:29195.
0:17:29 > 0:17:31200.
0:17:32 > 0:17:33201.
0:17:33 > 0:17:35202, sir?
0:17:35 > 0:17:38203? Eh?
0:17:38 > 0:17:40Is that a yes or a no?
0:17:40 > 0:17:42203. Thank you. 204.
0:17:43 > 0:17:46Have we called it quits now? 205?
0:17:47 > 0:17:50204, with you. 205?
0:17:50 > 0:17:53If not, 204, sitting down.
0:17:53 > 0:17:56204. First time. Second time.
0:17:57 > 0:18:00Third and last time. Are we all done?
0:18:00 > 0:18:02- HE BANGS THE GAVEL - Sold, 204.
0:18:02 > 0:18:05'After that one-on-one battle in the auction room,
0:18:05 > 0:18:08'the successful bid of £204,000
0:18:08 > 0:18:12'was made by James and his business partner, David.
0:18:16 > 0:18:19'James has worked for entrepreneur David for two years now,
0:18:19 > 0:18:23'managing his extensive portfolio of properties.
0:18:23 > 0:18:25'But this flat is his first acquisition for David
0:18:25 > 0:18:30'and he'll be managing the whole renovation by himself.'
0:18:30 > 0:18:33SONG: "All By Myself" by Big Bill Broonzy and Washboard Sam
0:18:33 > 0:18:38# Don't need nobody to help me I'm gonna do it all by myself...#
0:18:38 > 0:18:41'I caught up with them both to find out their plans.'
0:18:41 > 0:18:44- Guys, congratulations.- Thanks.
0:18:44 > 0:18:46So, are you both business partners?
0:18:46 > 0:18:51Not exactly. I employed James two years ago to work for me.
0:18:51 > 0:18:54I had a small property portfolio I was running on my own.
0:18:54 > 0:18:57I needed someone to take over,
0:18:57 > 0:19:01and I was very fortunate to find James because he's very organised
0:19:01 > 0:19:07and he's turned my small portfolio into quite a sensible holding.
0:19:07 > 0:19:09James, what is your background?
0:19:09 > 0:19:12I studied as an engineer, worked as an engineer for a bit,
0:19:12 > 0:19:17then went into property development and ended up working just down the road as an estate agent.
0:19:17 > 0:19:21I was there for just over a year before moving over to Essex,
0:19:21 > 0:19:23running a property portfolio there,
0:19:23 > 0:19:26and then coming over here and working for David.
0:19:27 > 0:19:30'It sounds like James is more than experienced enough
0:19:30 > 0:19:32'to manage this renovation on his own.
0:19:33 > 0:19:36'So, what has he got in mind?'
0:19:36 > 0:19:37There's lots we can do.
0:19:37 > 0:19:41There's three double bedrooms. We'll make one of them en suite.
0:19:41 > 0:19:43We'll change the location of the kitchen,
0:19:43 > 0:19:46knock down this wall to create an open-plan reception,
0:19:46 > 0:19:48white woodwork,
0:19:48 > 0:19:52neutral colour carpets upstairs and in the bedrooms.
0:19:52 > 0:19:54All pretty standard,
0:19:54 > 0:19:57but well-finished, good quality, nicely done.
0:19:57 > 0:20:00How much money do you think you'll spend?
0:20:00 > 0:20:02What is your budget on something like this?
0:20:02 > 0:20:07I think we've allowed for about £40,000, possibly up to £50,000.
0:20:07 > 0:20:10Wow! That's quite an impressive budget.
0:20:10 > 0:20:13Yeah. We want to make the product good. We're proud of what we do.
0:20:13 > 0:20:18Obviously we want to make a profit, but it's more important that we get a nice product,
0:20:18 > 0:20:22and if it costs a few thousand more, from experience it pays off.
0:20:22 > 0:20:24So what's the end price of this?
0:20:24 > 0:20:27How much would you like to market this for, once you've finished?
0:20:27 > 0:20:31I think we expect to get about £310,000 to £320,000.
0:20:31 > 0:20:36So you've got to break through that £250,000 threshold
0:20:36 > 0:20:40- and really make this an all-singing, all-dancing property.- Yeah.
0:20:40 > 0:20:42What about the fact that it's above a fast-food shop?
0:20:42 > 0:20:47Do you think that's going to put buyers off, perhaps?
0:20:47 > 0:20:50I think it's going to be an issue in terms of finding a mortgage,
0:20:50 > 0:20:54and we were aware of that when we bought it.
0:20:54 > 0:20:56If we stick it on the market
0:20:56 > 0:20:59and if we can't find a buyer within a couple of months,
0:20:59 > 0:21:02we'll be looking to let it until the market comes round,
0:21:02 > 0:21:04and we'll sell it then.
0:21:05 > 0:21:10'David and James plan to finish the work and put the flat on the market in just three months.
0:21:10 > 0:21:12'James knows the area and has done his homework,
0:21:12 > 0:21:16'so no wonder David's confident he can handle the project.'
0:21:16 > 0:21:19David, you've obviously got your fingers in many pies.
0:21:19 > 0:21:22Are you going to totally leave this to James to get on with?
0:21:22 > 0:21:25I hope so, yes. I think it's going to be his baby.
0:21:25 > 0:21:29I contributed from the financial point of view,
0:21:29 > 0:21:32and I'm going to leave it to James and not get in his way.
0:21:32 > 0:21:36- So this is going to be a bit of a showcase for you.- Yeah.
0:21:36 > 0:21:38This is my chance to prove to David what I can do,
0:21:38 > 0:21:41and hopefully it'll be the first of many to come.
0:21:41 > 0:21:45It's been fantastic meeting you. James, this is your big chance.
0:21:45 > 0:21:48- Thank you very much.- Good luck. - Thank you.
0:21:49 > 0:21:53This is James's chance to shine, and David is taking a back seat.
0:21:53 > 0:21:55But the big question here is:
0:21:55 > 0:21:59will they secure a buyer, or will they be forced to rent this out?
0:21:59 > 0:22:03'This property could give James a taste for success.
0:22:03 > 0:22:07'You can find out what happens later in the programme.'
0:22:08 > 0:22:12'Coming up, this property in Devon is fine just the way it is.'
0:22:12 > 0:22:14But in general, for once, I'd keep it like it is.
0:22:14 > 0:22:17It doesn't want to go open plan. This room I like.
0:22:18 > 0:22:21'We return to London to see how this brave new venture
0:22:21 > 0:22:23'has worked out for David and James.'
0:22:23 > 0:22:28This is my only time I've been back here, and I'm absolutely delighted with what I've seen.
0:22:29 > 0:22:32'But first, has it been a stress-free renovation
0:22:32 > 0:22:34'for Peter and Gail in Perthshire?'
0:22:34 > 0:22:38It's been very hard work, and I've lost all my nails.
0:22:41 > 0:22:43'Now we're back in Pitlochry
0:22:43 > 0:22:47'where this end-of-terrace cottage sold at auction for £82,000.
0:22:47 > 0:22:50'Gail bought it on behalf of herself and husband Peter.
0:22:50 > 0:22:54'They currently live just a short stroll from the property.'
0:22:55 > 0:22:57Why did you buy it?
0:22:57 > 0:23:01It's such a nice spot, a lot of people want to visit us,
0:23:01 > 0:23:05so often people are trying to get in, and we've got some people here,
0:23:05 > 0:23:09so it gives us extra accommodation for people to come and stay.
0:23:09 > 0:23:12It's nice not to have to go back the same day.
0:23:12 > 0:23:16SONG: "Come On Over" by Shania Twain
0:23:16 > 0:23:19# Pull up a seat Take a load off your feet...#
0:23:19 > 0:23:20'Isn't that a lovely idea!
0:23:20 > 0:23:24'But was it so lovely once the refurbishment got under way?
0:23:24 > 0:23:26'We're back just over eight months later,
0:23:26 > 0:23:29'and from the front it looks like things haven't changed much.
0:23:29 > 0:23:32'Let's hope it's a different story inside.
0:23:38 > 0:23:41'Well, what a transformation!
0:23:41 > 0:23:44'From dull and dowdy, Gail and Peter have turned this kitchen
0:23:44 > 0:23:47'into a bright and inviting space.
0:23:47 > 0:23:51'They've even added a wood-burning stove to give their visitors a warm welcome.
0:23:51 > 0:23:54'But the work also uncovered some uninvited guests
0:23:54 > 0:23:56'when woodworm and rot were discovered.
0:23:56 > 0:23:59'It meant replacing the entire kitchen floor.'
0:23:59 > 0:24:02It was completely rotten, and so we took it all out -
0:24:02 > 0:24:05the joists, the wood, everything -
0:24:05 > 0:24:07and that's all brand-new.
0:24:07 > 0:24:08Likewise, in the top of the house,
0:24:08 > 0:24:13the roof we had to lift on one side because there was a huge amount of woodworm.
0:24:13 > 0:24:17So the house had a fair few more issues than we'd anticipated.
0:24:17 > 0:24:20'At least they've done the job properly,
0:24:20 > 0:24:23'so hopefully they'll have few problems in the future.
0:24:23 > 0:24:25'The living room was a great size,
0:24:25 > 0:24:29'and, apart from that ugly, bricked-up doorway, there didn't seem much to do.
0:24:29 > 0:24:34'But, on closer inspection, they found the floor in here rotten too.
0:24:34 > 0:24:36'A complete replacement was the only solution.
0:24:36 > 0:24:40'Now the living room's finished, it's a gorgeous, airy space.
0:24:42 > 0:24:46'One of the house's biggest mysteries was that strange annex
0:24:46 > 0:24:48'with separate entrances on each floor.
0:24:48 > 0:24:52'Gail and Peter decided to turn the puzzle into a beautiful play area
0:24:52 > 0:24:54'for their younger visitors.'
0:24:54 > 0:24:57Well, we've created a safe play area for children.
0:24:57 > 0:24:59We had a door here which we've removed
0:24:59 > 0:25:01and we've now made a window.
0:25:01 > 0:25:06And, as you can see, we've made a clear, spacious area for all the children to play in.
0:25:06 > 0:25:12It's got a nice television set, books, games and things like that.
0:25:12 > 0:25:14'And where does that brand-new staircase lead?
0:25:14 > 0:25:19'Remember that Narnia entrance through a cupboard that led to a dark, almost unusable, room?
0:25:19 > 0:25:23'Well, now it's a light, bright mezzanine,
0:25:23 > 0:25:26'which could be used as another bedroom or a study.'
0:25:26 > 0:25:30This is where we originally came through from the bedroom. It was a hole in the cupboard.
0:25:30 > 0:25:32Now we've changed all that.
0:25:32 > 0:25:35We've closed that off and made this into a space on its own.
0:25:35 > 0:25:38A mezzanine area with plenty of light,
0:25:38 > 0:25:41and a balcony area here.
0:25:41 > 0:25:43It all works very well. We really like it a lot this way.
0:25:43 > 0:25:46'The master bedroom upstairs was a good size.
0:25:46 > 0:25:50'Now, with some tasteful decoration, it's a beautiful room.
0:25:50 > 0:25:53'And, once Peter and Gail removed that ugly radiator,
0:25:53 > 0:25:57'they uncovered this wonderful fireplace.
0:25:58 > 0:26:01'Without those wardrobes, the second bedroom
0:26:01 > 0:26:05'feels entirely different - fresh and light.
0:26:05 > 0:26:08'The bathroom needed a complete overhaul.
0:26:08 > 0:26:10'Now, with a new suite, flooring and decoration,
0:26:10 > 0:26:13'it's a lovely modern bathroom,
0:26:13 > 0:26:16'with the addition of a new shower as well.
0:26:16 > 0:26:19'The cottage has been rewired and replumbed throughout,
0:26:19 > 0:26:24'with new gas central heating and loft insulation installed.
0:26:24 > 0:26:27'Outside, there's been extensive earthwork,
0:26:27 > 0:26:29'with more parking created.
0:26:29 > 0:26:32'The garden's been tamed, but there's still plenty to do.'
0:26:32 > 0:26:35'There's all the outside painting to be done
0:26:35 > 0:26:37'and more landscaping work.
0:26:37 > 0:26:40'We've got to get some grass down there and do more work on that.'
0:26:41 > 0:26:44'It seems the lion's share of the work is done.
0:26:44 > 0:26:46'When we were last here, Peter was adamant
0:26:46 > 0:26:49'that this project wouldn't take over their lives.
0:26:49 > 0:26:51'Did they stick to their guns?'
0:26:52 > 0:26:56It's been very hard work, and I've lost all my nails.
0:26:56 > 0:26:59It's been more work than we'd anticipated.
0:26:59 > 0:27:04I think we'd have still done it because it's very local to us.
0:27:04 > 0:27:09But certainly I hadn't anticipated putting as much of my own personal effort and time in, or Gail's.
0:27:09 > 0:27:12Nor had I. It's been really hard work.
0:27:12 > 0:27:16However, when you walk round it finished, it feels really good and exciting.
0:27:16 > 0:27:21'As Peter and Gail were so thorough in refurbishing this house,
0:27:21 > 0:27:26'they rescued it from some potentially disastrous problems like woodworm and rot.
0:27:26 > 0:27:30'After all their hard work, what were the highlights?'
0:27:30 > 0:27:33Seeing the roof come right, seeing this floor go down,
0:27:33 > 0:27:36and it all coming together when everything had been ripped out.
0:27:36 > 0:27:40The electric's in, the plumbing's in, everything hidden away,
0:27:40 > 0:27:42and it starts to look like a proper house again.
0:27:43 > 0:27:46'Originally Peter thought it would take two to four months,
0:27:46 > 0:27:49'but so far it's been eight months of hard work,
0:27:49 > 0:27:52'and he thinks it will be another two before it's finally finished.
0:27:52 > 0:27:54'He also estimated the cost of renovation
0:27:54 > 0:27:57'to be between £20,000 and £40,000.
0:27:57 > 0:28:02'So, has his budget suffered as badly as his timescale?'
0:28:02 > 0:28:05Even when all the external work is finished,
0:28:05 > 0:28:06we'll still be under £40,000.
0:28:06 > 0:28:08So we've spent a fair bit of money
0:28:08 > 0:28:14but we've produced what we think is a very good result as a consequence of that,
0:28:14 > 0:28:15so we're not too concerned.
0:28:17 > 0:28:19'The couple paid £82,000 at auction,
0:28:19 > 0:28:23'and Peter has estimated roughly 40 grand will have been spent
0:28:23 > 0:28:26'by the time he finishes the exterior work.
0:28:26 > 0:28:32'So, with about £122,000 invested in total once it's all finished,
0:28:32 > 0:28:34'plus addition fees and expenses,
0:28:34 > 0:28:37'have they made any money here?
0:28:37 > 0:28:42'We asked two local property experts for their opinions.'
0:28:42 > 0:28:46It's very nice, very well done. It's very modernised.
0:28:46 > 0:28:49Compared to the last time I saw it, it's a total transformation.
0:28:49 > 0:28:52It's lovely. It's a super location.
0:28:52 > 0:28:56And he's done everything from replacing flooring, ceilings,
0:28:56 > 0:28:59and he's definitely not cut any corners.
0:28:59 > 0:29:02'That's brilliant feedback for Peter and Gail.
0:29:02 > 0:29:05'Both experts agree that renting the house out as a holiday let
0:29:05 > 0:29:07'could be very lucrative.
0:29:07 > 0:29:10'So, what could their cash return be?'
0:29:10 > 0:29:13I could see this going between £500 and £600 per week
0:29:13 > 0:29:15on the holiday let market.
0:29:15 > 0:29:20I would expect, as a holiday let, they could achieve £500 per week.
0:29:20 > 0:29:22- Golly. - SHE LAUGHS
0:29:22 > 0:29:25Gosh. We could be millionaires, darling. That's the best.
0:29:25 > 0:29:29- That's quite a lot of money for a small place.- For a week!
0:29:29 > 0:29:33I wouldn't like to be the person having to pay it, though.
0:29:33 > 0:29:37'If they were to rent the property out as a residential let,
0:29:37 > 0:29:39'the experts estimated they could achieve
0:29:39 > 0:29:42'between £500 and £700 per calendar month.
0:29:42 > 0:29:45'So not a bad return there,
0:29:45 > 0:29:49'although the demand for this type of let in this area is fairly low.
0:29:49 > 0:29:50'If they were to sell the cottage,
0:29:50 > 0:29:54'what might they achieve in the current market?'
0:29:54 > 0:29:58I would set the value of this property at £175,000 to £180,000.
0:29:58 > 0:30:04I think this house could fetch between £170,000 and £180,000.
0:30:04 > 0:30:06Really?! HE LAUGHS
0:30:08 > 0:30:11- That's amazing!- It's pretty good.
0:30:11 > 0:30:16- It surprises us, I think.- I thought about £125,000 or something. Whoo!
0:30:16 > 0:30:19'I can see why they're pleased.
0:30:19 > 0:30:25'That could give them a remarkable pre-tax profit of up to £58,000.
0:30:25 > 0:30:28'The couple bought the cottage so that family and friends
0:30:28 > 0:30:32'could have somewhere comfortable to stay close by when visiting.
0:30:32 > 0:30:35'But after hearing the property experts' valuations,
0:30:35 > 0:30:37'have they had a rethink?'
0:30:37 > 0:30:41It certainly is tempting to look at the holiday season
0:30:41 > 0:30:44and look at a few weeks in the holiday season,
0:30:44 > 0:30:48- but we'll have to think about that. - It's a lot of money to say no to.
0:30:48 > 0:30:52'Now with a successful renovation project under their belts,
0:30:52 > 0:30:55'what do they plan to do next?
0:30:55 > 0:30:57Travelling. Having fun.
0:30:57 > 0:31:00- Yes, relaxing a little bit. - Doing nice things. Relaxing, yes.
0:31:00 > 0:31:02Reading.
0:31:02 > 0:31:03Yeah, just having a nice time.
0:31:09 > 0:31:13'I'm in Plymouth, Devon, in an area called St Budeaux.
0:31:13 > 0:31:17'It's a part of the city which has affordable housing in abundance.
0:31:17 > 0:31:20'The property that went to auction is on a main road,
0:31:20 > 0:31:24'good for shops and amenities, but not so good for the traffic.'
0:31:24 > 0:31:27SONG: "Cars" by Gary Numan
0:31:34 > 0:31:41I'm here to see a two-bedroom flat that had a guide price of £120,000.
0:31:41 > 0:31:44Sounds like a lot for a two-bedroom flat, but that's not all you get.
0:31:44 > 0:31:47You also get this. Not the charity shop itself,
0:31:47 > 0:31:51but the commercial unit that the charity shop is in.
0:31:51 > 0:31:55They say charity begins at home. Let's start with the home.
0:31:56 > 0:31:59'Of course, by having a shop leased out underneath,
0:31:59 > 0:32:03'the flat could generate more income for whoever bought it.
0:32:03 > 0:32:07'It will also be handy for tenants to pick up any shopping.'
0:32:12 > 0:32:15So, up one flight of stairs to this little landing.
0:32:15 > 0:32:20That's your loo and bathroom. Looks like it could do with a tidy up.
0:32:20 > 0:32:25But in general the flat actually feels in pretty good condition.
0:32:25 > 0:32:27A fairly classic kind of decorating going on.
0:32:27 > 0:32:30White, with a bit of cream and some white detailing. I like that.
0:32:30 > 0:32:33I also, believe it or not, like the woodchip wallpaper.
0:32:33 > 0:32:36In a place like this that you'll rent out,
0:32:36 > 0:32:40it's easy to patch in another bit of woodchip if you get some damage.
0:32:40 > 0:32:42So don't knock it and don't necessarily take it off -
0:32:42 > 0:32:47you'll be delighted to hear, because it is a horrible job to get woodchip off.
0:32:47 > 0:32:51But what have we got? Two bedrooms. One there, one there.
0:32:51 > 0:32:55Kitchen - not an ideal size, but it looks like it's pretty serviceable.
0:32:55 > 0:32:59So would we think about knocking it through to the living area?
0:32:59 > 0:33:02There's a window there. You could open that up.
0:33:02 > 0:33:04But in general, for once, I'd keep it like it is.
0:33:04 > 0:33:07It doesn't want to go open plan. This room I like.
0:33:07 > 0:33:10A big bay window, you've got your open fire.
0:33:10 > 0:33:13At the moment it has a horrible gas fire but you can sort that out.
0:33:13 > 0:33:15A nice space. So, all in all,
0:33:15 > 0:33:19a really good-size, spacious, two-bedroom flat.
0:33:19 > 0:33:21Good news.
0:33:21 > 0:33:24'Indeed, those big, bright, open corridors
0:33:24 > 0:33:27'only add to the instant appeal of this flat.
0:33:27 > 0:33:30'By the look of it, there really isn't much to do here.
0:33:30 > 0:33:34'It's pretty much ready to move straight into.'
0:33:35 > 0:33:38One of the things which strikes you about this flat is the size.
0:33:38 > 0:33:42It is a really nice-sized unit.
0:33:42 > 0:33:44I mean, two huge bedrooms, as I said.
0:33:44 > 0:33:47Maybe you could think about creating three smaller ones,
0:33:47 > 0:33:50but I think you'd lose some of the charm of this place by doing that.
0:33:50 > 0:33:52Nice little features.
0:33:52 > 0:33:55Oh. I was hoping for a slightly deeper cupboard than that.
0:33:55 > 0:33:58But OK, a very thin, narrow cupboard.
0:33:58 > 0:34:01But anyway, at least it is inbuilt storage.
0:34:01 > 0:34:05Another nice touch, all the rooms have got these open fires.
0:34:05 > 0:34:08All in all, then, it's a great place, really.
0:34:08 > 0:34:10Great place.
0:34:10 > 0:34:14SONG: "It's Been A Great Afternoon" by Merle Haggard
0:34:15 > 0:34:16'So far so good,
0:34:16 > 0:34:20'and all for a tempting guide price of £120,000,
0:34:20 > 0:34:24'which, remember, includes the shop below.'
0:34:24 > 0:34:27Well, mixed-use units like this
0:34:27 > 0:34:30with a commercial area downstairs and a flat above
0:34:30 > 0:34:34can sometimes be quite difficult to get finance on for some reason.
0:34:34 > 0:34:37However, I think they offer a really good opportunity
0:34:37 > 0:34:39for some solid rental income.
0:34:39 > 0:34:41Can't go wrong, really.
0:34:42 > 0:34:46'I've certainly been won over by this property's potential.
0:34:46 > 0:34:48'But will it charm a local estate agent?
0:34:49 > 0:34:52'We asked one from the auction house who sold it
0:34:52 > 0:34:55'to take a look and tell us what he thought.'
0:34:55 > 0:34:57The flat's in a very good condition.
0:34:57 > 0:35:00It will allow somebody to rent the property straightaway.
0:35:00 > 0:35:05'The property is decorated to a reasonable standard for letting.
0:35:05 > 0:35:07'In terms of location,
0:35:07 > 0:35:10'it's ideally suited to anybody who wants to work in the city centre.'
0:35:10 > 0:35:13'Because it's so easy to pop into Plymouth from here,
0:35:13 > 0:35:17'this flat would generate a healthy rental income.'
0:35:17 > 0:35:18Once renovated, I estimate
0:35:18 > 0:35:24that the property should achieve between £500 to £525 per calendar month.
0:35:24 > 0:35:27'So a reasonable rental return from the upstairs alone.
0:35:27 > 0:35:31'What if the new owner decided to sell the flat on?'
0:35:31 > 0:35:36I would recommend the current market value to be between £75,000 to £80,000.
0:35:36 > 0:35:40'Remember, that's only the value for part of this property.'
0:35:41 > 0:35:45One of the big commercial benefits of this particular auction lot
0:35:45 > 0:35:48was the fact that it did come with this commercial unit,
0:35:48 > 0:35:51which has already got somebody renting it out.
0:35:51 > 0:35:53The auction catalogue says
0:35:53 > 0:35:58that it does enjoy the comfort of a newly signed five-year lease.
0:35:59 > 0:36:01'That sounds simple enough,
0:36:01 > 0:36:05'and the current rental income from the shop is about £7,000 a year.
0:36:05 > 0:36:08'So that could be a nice little earner
0:36:08 > 0:36:10'for whoever bought the property at auction.
0:36:10 > 0:36:12'But it's worth checking these things,
0:36:12 > 0:36:16'and the auctioneer had a little explaining to do on the day.'
0:36:18 > 0:36:20We have more information for you.
0:36:20 > 0:36:23The new lease referred to in the catalogue description
0:36:23 > 0:36:25is still in preparation
0:36:25 > 0:36:28and will not be signed until after the auction date.
0:36:28 > 0:36:30Where shall we start?
0:36:30 > 0:36:32I'll take 100. I've got 100.
0:36:32 > 0:36:34£100,000 I've got.
0:36:34 > 0:36:36£101,000.
0:36:36 > 0:36:38102.
0:36:38 > 0:36:39103, sir?
0:36:39 > 0:36:41103. 104.
0:36:41 > 0:36:43105, sir?
0:36:43 > 0:36:44105. 106.
0:36:44 > 0:36:47New place. 107. Got your bid, 107.
0:36:47 > 0:36:49I'll come back to you at 108, sir.
0:36:49 > 0:36:52£108,000. 108.
0:36:52 > 0:36:55£109,000. I need 110.
0:36:56 > 0:36:57110.
0:36:57 > 0:36:59111. Go 112, sir?
0:37:00 > 0:37:01112.
0:37:01 > 0:37:05112. 113. 114 I've taken.
0:37:05 > 0:37:06115?
0:37:06 > 0:37:09£115,000. 116.
0:37:09 > 0:37:11117, sir?
0:37:11 > 0:37:13117? I've taken 117.
0:37:13 > 0:37:15£117,000.
0:37:15 > 0:37:17118. Creeping up. 118.
0:37:17 > 0:37:19119, sir?
0:37:19 > 0:37:20£119,000.
0:37:20 > 0:37:24At £120,000. I need 121. It's still rolling on.
0:37:24 > 0:37:26121? 121.
0:37:26 > 0:37:28122.
0:37:28 > 0:37:30122. Taken 122.
0:37:30 > 0:37:32123, please.
0:37:32 > 0:37:33123.
0:37:33 > 0:37:35£124,000.
0:37:35 > 0:37:37Go 125, sir?
0:37:37 > 0:37:39£125,000.
0:37:39 > 0:37:42At £125,000. Finished?
0:37:42 > 0:37:44- OK. - HE BANGS THE GAVEL
0:37:45 > 0:37:50'It was Chris who made that final bid of £125,000.
0:37:51 > 0:37:53'He and his wife Lily
0:37:53 > 0:37:56'have been investing in and developing property
0:37:56 > 0:37:57'for the last ten years.
0:37:57 > 0:38:02'I caught up with him at his latest purchase to hear about the plan.'
0:38:02 > 0:38:05- Chris, Congratulations. - Thank you very much.- Well done.
0:38:05 > 0:38:08Tell me why you wanted to buy this interesting opportunity.
0:38:08 > 0:38:11With the shop and the flat are two opportunities for income,
0:38:11 > 0:38:14so it makes a good rental year for us
0:38:14 > 0:38:16- on the money we've got to invest. - Right.
0:38:16 > 0:38:21- Tell me more about you.- My wife and I just returned from Australia.- Oh!
0:38:21 > 0:38:24We were in New Zealand and then Australia for six years.
0:38:24 > 0:38:28- What were you doing in Australia? - Not too much.
0:38:28 > 0:38:32We did a little bit of development on a piece of land in Australia,
0:38:32 > 0:38:34and also in New Zealand before that.
0:38:34 > 0:38:37Why did you choose to invest in this area?
0:38:37 > 0:38:42When I viewed the property, it seemed like a nice street, with a good feel to the property.
0:38:42 > 0:38:44It's fairly local to where we are,
0:38:44 > 0:38:46so we've got a chance to see it and manage it,
0:38:46 > 0:38:50but not too close to home, so we don't have it on the doorstep.
0:38:50 > 0:38:54'All those years of experience developing land and property,
0:38:54 > 0:38:56'both at home and abroad,
0:38:56 > 0:38:58'came in very handy for this flat.
0:38:58 > 0:39:01'Chris knew he needed to do his homework,
0:39:01 > 0:39:04'and a quick call to the auction house a week before the auction
0:39:04 > 0:39:08'meant he knew about that unsigned shop lease
0:39:08 > 0:39:10'well in advance of making his bid.
0:39:10 > 0:39:12'A lesson to be learnt there:
0:39:12 > 0:39:15'do your research first to prevent complications later.
0:39:15 > 0:39:19SONG: "Confusion" by The Zutons
0:39:20 > 0:39:23There was a bit of confusion over the lease
0:39:23 > 0:39:26- in terms of what the catalogue said and the reality.- Yes.
0:39:26 > 0:39:30The catalogue said there was a new five-year lease in place,
0:39:30 > 0:39:33- but actually that five-year lease hadn't been signed.- Ah!
0:39:33 > 0:39:35So it was in place on a desk somewhere!
0:39:35 > 0:39:39Probably on somebody's desk. We don't quite know whose.
0:39:39 > 0:39:43So what we've done is asked our solicitor to amend the existing lease
0:39:43 > 0:39:46to extend it by a further five years,
0:39:46 > 0:39:47and they're dealing with that now.
0:39:47 > 0:39:49- The lease already in place.- Yeah.
0:39:49 > 0:39:54It was a fairly standard commercial lease with nothing in it for us to think about,
0:39:54 > 0:39:59so we might as well just extend it for a further five years.
0:39:59 > 0:40:01What are you going to do to the property, then?
0:40:01 > 0:40:04I think a bit of tidying up. It's got some nice features.
0:40:04 > 0:40:07The lovely fireplaces, which I think will look nice.
0:40:07 > 0:40:11We're going to take away the gas fires and put central heating in,
0:40:11 > 0:40:13replace the floorings,
0:40:13 > 0:40:15things like the doors,
0:40:15 > 0:40:17and just a good general tidy up.
0:40:17 > 0:40:20- Why replace the floorings? - They've got to come up to get the heating in,
0:40:20 > 0:40:24so it's a good opportunity to replace them at that point,
0:40:24 > 0:40:26make it look spick and span.
0:40:26 > 0:40:28- And then rent it out.- Yes.
0:40:30 > 0:40:34'Chris thinks that the work here could be completed in about a month
0:40:34 > 0:40:36'for £3,000 to £4,000.
0:40:36 > 0:40:40'For this, their first property venture back on these shores,
0:40:40 > 0:40:43'I reckon the couple have picked an ideal flat.
0:40:43 > 0:40:46'Not much work needed but great rental potential.
0:40:46 > 0:40:49'By the sounds of it, this will be the first of many.'
0:40:53 > 0:40:57- The plan is to build a portfolio of how many?- As many as we can.
0:40:57 > 0:41:03- Realistically, I suppose we're initially looking for 30 to 40 properties.- Blimey! Initially?
0:41:03 > 0:41:06- Well, we've got a plan. - Which is?- Erm...
0:41:06 > 0:41:09To purchase only positive cash flow property
0:41:09 > 0:41:12that will actually pay us to have them.
0:41:12 > 0:41:15That way, with the market as it is and prices as they are,
0:41:15 > 0:41:18we've got a chance to perhaps accelerate a bit quicker
0:41:18 > 0:41:21than we could have done when prices were very high.
0:41:21 > 0:41:25- But you still have to come up with the finance.- Yes. Some finance.
0:41:25 > 0:41:29We're fortunate that we can initially proceed with some cash
0:41:29 > 0:41:32and then refinance after.
0:41:32 > 0:41:37But yes, obviously finance will become the big issue on the quantity that we can get.
0:41:37 > 0:41:41But as long as the properties are paying us an income rather than costing money,
0:41:41 > 0:41:43we've got a much better chance of success.
0:41:43 > 0:41:48- Well, congratulations.- Thank you very much.- Good luck with it.
0:41:50 > 0:41:53All our buyers hoped their journeys had been worth it.
0:41:53 > 0:41:56They'd taken the right turns and avoided the pitfalls.
0:41:56 > 0:42:00So did they? Decisions, decisions. Did they make the right ones?
0:42:00 > 0:42:02Time to go back and find out.
0:42:03 > 0:42:06'Now we're back in Earlsfield, South West London,
0:42:06 > 0:42:08'where this three-bedroom flat above a cafe
0:42:08 > 0:42:11'sold at auction for £204,000.
0:42:11 > 0:42:15'I met the new owner, property developer David, and his assistant, James.
0:42:15 > 0:42:19'Beginning a new chapter in their professional relationship,
0:42:19 > 0:42:23'James is taking the lead in his first acquisition for David.'
0:42:23 > 0:42:26I think it's going to be his baby.
0:42:26 > 0:42:29I contributed from the financial point of view
0:42:29 > 0:42:33and I'm going to leave it to James and not get in his way.
0:42:33 > 0:42:36So this is going to be a bit of a showcase for you, isn't it?
0:42:36 > 0:42:39Yeah. This is my chance to prove to David what I can do,
0:42:39 > 0:42:42and hopefully it'll be the first of many to come.
0:42:42 > 0:42:46'James had some big plans for reorganising the space in the flat,
0:42:46 > 0:42:49'which included relocating the kitchen.
0:42:49 > 0:42:51'Did he manage to pull that off?
0:42:51 > 0:42:55'We're back four months later to see how they got on.
0:42:56 > 0:42:59'The living room in this flat was out of tune with the times
0:42:59 > 0:43:01'and in desperate need of modernisation.
0:43:01 > 0:43:04'But now...
0:43:04 > 0:43:06'James has brought harmony to this space
0:43:06 > 0:43:08'with solid-wood floors
0:43:08 > 0:43:10'and a beautiful cast iron fireplace,
0:43:10 > 0:43:12'giving the room an impressive focal point.
0:43:12 > 0:43:16'The wall between the living room and the first-floor bedroom has been removed
0:43:16 > 0:43:20'to create an amazing open-plan kitchen and lounge.
0:43:20 > 0:43:25'What was the front bedroom is now a stunning and stylish kitchen.'
0:43:25 > 0:43:27In the lounge and kitchen, what we've done...
0:43:27 > 0:43:31This was originally two rooms. We've taken this wall down.
0:43:31 > 0:43:34We've tried to bring in and make the most of the kitchen.
0:43:34 > 0:43:38To give it that "wow" factor, we've got a nice big range-style cooker.
0:43:38 > 0:43:42Also, because of the light, the windows either side,
0:43:42 > 0:43:43it makes the room very light.
0:43:43 > 0:43:46We've got a nice big feature fireplace in here.
0:43:46 > 0:43:48I think it really works.
0:43:48 > 0:43:51It's been a positive step, I think, and a selling point for the flat.
0:43:51 > 0:43:55'The original kitchen at the back of the flat was dull and dated.
0:43:55 > 0:43:57'But now the kitchen has moved to the front,
0:43:57 > 0:43:59'this has become the master bedroom.
0:43:59 > 0:44:02'James has really let the light flood in here.
0:44:04 > 0:44:07'Previously the bathroom was separate from the toilet.
0:44:07 > 0:44:11'But they've been cleverly combined to make an en suite shower room.
0:44:14 > 0:44:17'The stairs leading to the next floor have been spruced up
0:44:17 > 0:44:20'with new carpets and a fresh paint job,
0:44:20 > 0:44:24'which has also really cheered up the landing upstairs.
0:44:24 > 0:44:27'The first bedroom on the next floor was a decent size
0:44:27 > 0:44:29'and just needed some TLC.
0:44:29 > 0:44:34'Some neutral paint and a carpet have done the trick.'
0:44:34 > 0:44:36'The last bedroom was large
0:44:36 > 0:44:38'and again just needed brightening up.
0:44:38 > 0:44:41'Now it's light and inviting.
0:44:43 > 0:44:47'One thing that James has achieved is to add a bathroom up here.
0:44:47 > 0:44:50'By losing a bit a space from this already massive room,
0:44:50 > 0:44:52'he's made a great improvement to this flat.
0:44:52 > 0:44:57'The bathroom, fresh and simple, really is a tremendous enhancement.
0:45:01 > 0:45:04'There certainly have been big changes here.
0:45:04 > 0:45:07'But I wonder if it was all plain sailing.'
0:45:07 > 0:45:11It's gone really smoothly. We've had a really good team of guys.
0:45:11 > 0:45:14They've done a great job. They've been working hard for me.
0:45:14 > 0:45:17I've been over here checking up on them.
0:45:17 > 0:45:21The shop downstairs could have been an issue, but they've been great.
0:45:21 > 0:45:25It's all run pretty much according to plan, so... happy days.
0:45:25 > 0:45:27'Yes, happy days indeed.
0:45:27 > 0:45:29'But when we were last here,
0:45:29 > 0:45:33'the distinct odour of cooking was coming from the downstairs cafe.
0:45:33 > 0:45:35'Has James managed to do anything about it?'
0:45:35 > 0:45:38We were getting a bit of a smell coming through.
0:45:38 > 0:45:41So what we did was beefed up the dividing wall
0:45:41 > 0:45:44between the cafe and the incoming staircase
0:45:44 > 0:45:48and we put down a vapour barrier across the whole of the first floor
0:45:48 > 0:45:50to stop it from coming through,
0:45:50 > 0:45:52and it's worked a treat.
0:45:53 > 0:45:55'But what about those cracks we spotted?
0:45:55 > 0:45:58'Fingers crossed it wasn't subsidence!'
0:45:58 > 0:46:02We got a structural engineer, who reassured us that wasn't the case.
0:46:02 > 0:46:05There's been some movement over the years but that was a long time ago,
0:46:05 > 0:46:08and we've not had any problem since.
0:46:08 > 0:46:11'Everything seems to have gone well for James.
0:46:11 > 0:46:15'But what does David, the man holding the purse strings, think?'
0:46:15 > 0:46:18I came here when we first bought it.
0:46:18 > 0:46:21I got back to the office. James took over from there.
0:46:21 > 0:46:24This is my only time I've been back here
0:46:24 > 0:46:27and I'm absolutely delighted with what I've seen.
0:46:28 > 0:46:32'So has James impressed David enough to risk it again?'
0:46:33 > 0:46:35'Without doubt, he has proven himself.
0:46:35 > 0:46:39'I really did want this to be a success for him,
0:46:39 > 0:46:41'and that's what I really want him to do,
0:46:41 > 0:46:44to be a long-term partner with me in my business.
0:46:44 > 0:46:50And I think this is going to be the right stage for us
0:46:50 > 0:46:51to start doing other deals.
0:46:52 > 0:46:56'It sounds like everything has worked out for David and James.
0:46:56 > 0:46:58'So let's get down to business.
0:46:58 > 0:47:02'They reckoned they'd need three months to complete the renovation.
0:47:02 > 0:47:06'But now it's four months on and there's still snagging to sort.
0:47:06 > 0:47:08'So, what was the hold-up?'
0:47:08 > 0:47:13We had Christmas in the middle, so there was a bit of a break there,
0:47:13 > 0:47:16and really just tweaking, making sure we go that extra step
0:47:16 > 0:47:18to get the finish that we're after.
0:47:19 > 0:47:23'Their budget for the work was between £40,000 and £50,000.
0:47:23 > 0:47:26'So how did James do at spending David's money?
0:47:28 > 0:47:30Originally our budget was £40,000 to £50,000.
0:47:30 > 0:47:33I did think I might be able to get it done for a bit less.
0:47:33 > 0:47:35I think we've ended up spending about £45,000,
0:47:35 > 0:47:39so really we're where we originally thought we would be.
0:47:39 > 0:47:41So we haven't really gone over budget.
0:47:42 > 0:47:46'That 45 grand budget included £5,000 in fees.
0:47:46 > 0:47:49'Added to the purchase price of £204,000,
0:47:49 > 0:47:53'that makes a grand total of £249,000.
0:47:53 > 0:47:56'So, have they made any money on this venture?
0:47:56 > 0:48:00'We invited two local estate agents to give us their thoughts.'
0:48:01 > 0:48:02'Looking very good.
0:48:02 > 0:48:04'Done a good job. Very neat.'
0:48:04 > 0:48:06Used a lot of the space very well.
0:48:06 > 0:48:08I'm very impressed by that.
0:48:08 > 0:48:11This room especially. Fantastic. A really big reception.
0:48:11 > 0:48:14They've been very clever with their allocation of bathrooms.
0:48:14 > 0:48:17We've got an en suite bathroom and another main bathroom,
0:48:17 > 0:48:20which was sneaked in using a little bit of a bedroom.
0:48:20 > 0:48:23You don't notice the missing size of the room.
0:48:23 > 0:48:25Very impressed. Very good.
0:48:25 > 0:48:28My first thoughts are that the finish is really good,
0:48:28 > 0:48:31especially in the kitchen and living area.
0:48:31 > 0:48:35Some very nice traditional features, especially the fireplace.
0:48:35 > 0:48:37And it's got a very good layout.
0:48:39 > 0:48:42'That's great, really positive feedback for James.
0:48:42 > 0:48:46'How much do they think the flat could earn on the rental market?'
0:48:46 > 0:48:48Looking at the finish and the location,
0:48:48 > 0:48:51in the rental market, I'd put it on at around £1300 per calendar month.
0:48:51 > 0:48:56I'd put this on the rental market at £1450 per calendar month.
0:48:56 > 0:49:01I think that's about right. Maybe a touch more than that but...
0:49:02 > 0:49:04'If the property was put up for sale now,
0:49:04 > 0:49:07'how much could they expect to get for it?'
0:49:07 > 0:49:10In terms of resale value,
0:49:10 > 0:49:15I'd be quite happy to put it on between £285,000 and £300,000.
0:49:15 > 0:49:19I'd put this on the resale market at £365,000.
0:49:19 > 0:49:24Wow. That's a big difference between the two.
0:49:24 > 0:49:27I think that speaks for itself. I've had that same problem myself.
0:49:27 > 0:49:30It's difficult to find good comparables for it.
0:49:30 > 0:49:34I've had some agents come up at the £350,000 mark,
0:49:34 > 0:49:37some down at £310,000 or £300,000.
0:49:37 > 0:49:40If we end up somewhere in the middle, that'd be great.
0:49:41 > 0:49:45'This seems to have worked out really well for David and James.
0:49:45 > 0:49:49'With a further two properties they bought at auction recently,
0:49:49 > 0:49:53'this marks the beginning of a new business venture for them both.'
0:49:53 > 0:49:55It was a leap of faith, obviously, in him,
0:49:55 > 0:49:58because I didn't interfere and he got on with the job,
0:49:58 > 0:50:00and he has proved himself,
0:50:00 > 0:50:05and it is very much what I'd hoped for and what I'd expected.
0:50:05 > 0:50:11So we move on from here, and I have confidence in him for the future.
0:50:15 > 0:50:17'We're back in Plymouth now,
0:50:17 > 0:50:22'where this two-bed flat sold for £125,000
0:50:22 > 0:50:25'but also included the shop below.
0:50:25 > 0:50:27'It was bought by Chris,
0:50:27 > 0:50:31'who had big plans for his growing property-developing portfolio.'
0:50:33 > 0:50:39- Realistically, I suppose we're initially looking for 30 to 40 properties.- Blimey! Initially?
0:50:39 > 0:50:42- Well, we've got a plan. - Which is?- Erm...
0:50:42 > 0:50:45To purchase only positive cash flow property
0:50:45 > 0:50:48that will actually pay us to have them.
0:50:48 > 0:50:51That way, with the market as it is and prices as they are,
0:50:51 > 0:50:54we've got a chance to perhaps accelerate a bit quicker
0:50:54 > 0:50:57than we could have done when prices were very high.
0:50:57 > 0:51:00'But how quickly have the renovations gone?
0:51:00 > 0:51:04'We caught up with him six weeks later to find out.'
0:51:06 > 0:51:12SONG: "With A Little Bit Of Mending (We Could Be As Good As New" by Lamont Dozier
0:51:17 > 0:51:19We didn't have too much to do.
0:51:19 > 0:51:22The main job was the central heating, so we put that in.
0:51:22 > 0:51:26In the kitchen, we had to replace the floor where the floor came up.
0:51:26 > 0:51:27A little bit of boxing in.
0:51:27 > 0:51:31But mostly it's just decoration, which has yet to be finished off.
0:51:33 > 0:51:35'It's not the most dramatic of transformations,
0:51:35 > 0:51:40'but remember, the flat didn't need much done to it in the first place.
0:51:40 > 0:51:44'Talking of dramatic, check out the new floor in the bathroom.'
0:51:45 > 0:51:49In the bathroom, we've redone this wall and the ceiling,
0:51:49 > 0:51:51all plasterboarded and made good.
0:51:51 > 0:51:54We've replaced the bath, which was pretty poor,
0:51:54 > 0:51:56put a new shower and shower screen in,
0:51:56 > 0:51:58new taps on the sink,
0:51:58 > 0:51:59the toilet's had a new seat,
0:51:59 > 0:52:03and, to match the kitchen, we've got a flashy new floor.
0:52:03 > 0:52:07- MARTIN CHUCKLES - 'Yes, and it continues into the new kitchen.'
0:52:09 > 0:52:11We didn't have to do too much in the kitchen.
0:52:11 > 0:52:15As you can see, we put a new central heating boiler on the wall.
0:52:15 > 0:52:17The pipes go under the floor.
0:52:17 > 0:52:19We've got a new cooker. The units are all the same.
0:52:19 > 0:52:23We've got a bit of decoration left to do on the walls and ceiling.
0:52:23 > 0:52:25And we've got a sparkling new floor.
0:52:25 > 0:52:28'But apart from a lick of paint throughout the flat,
0:52:28 > 0:52:32'there are a few other little finishing touches that Chris would like to do.'
0:52:34 > 0:52:38I've got new doors to go on because the old doors were quite horrible.
0:52:38 > 0:52:41But really, it's going to be a carpet-clean,
0:52:41 > 0:52:45and I've just got some boards to stop draughts from the fireplaces.
0:52:45 > 0:52:48But that's really it. It's just a light decorating job.
0:52:48 > 0:52:52'It sounds like it's been a fairly straightforward renovation.
0:52:52 > 0:52:54'Chris did most of the work himself,
0:52:54 > 0:52:58'except for installing the new central heating system and boiler.
0:52:58 > 0:53:00'Has the budget come in on target?'
0:53:03 > 0:53:05Our budget was a maximum of £5,000.
0:53:05 > 0:53:09The central heating was a bit more expensive than we thought,
0:53:09 > 0:53:11at just about £3,500.
0:53:11 > 0:53:14And we've actually spent £4,984.
0:53:14 > 0:53:18'Approximately(!) You can't get more precise than that.
0:53:18 > 0:53:21'Accurate down to the last pound.
0:53:21 > 0:53:24'But can he be as specific about the time taken?'
0:53:26 > 0:53:28We've owned the property for about six weeks.
0:53:28 > 0:53:31We've been working on it for about three weeks in total,
0:53:31 > 0:53:33so not an awful lot of time.
0:53:33 > 0:53:37We've got a tenant coming in in two weeks, so we've got to be done by then.
0:53:37 > 0:53:39So about five weeks in total,
0:53:39 > 0:53:42not quite on a full-time basis but about three days a week.
0:53:42 > 0:53:44'So, with a tenant already lined up,
0:53:44 > 0:53:47'that answers the question of whether he'd rent or sell.
0:53:47 > 0:53:52'What was the outcome of the still unsigned lease on the shop below?'
0:53:53 > 0:53:58They were in there when we came. They have agreed the new lease.
0:53:58 > 0:54:02So we have a four-year extension on the lease.
0:54:02 > 0:54:04They just carry on with it as it is,
0:54:04 > 0:54:05so we don't have to do anything.
0:54:05 > 0:54:09'Chris's luck really has been in on this project -
0:54:09 > 0:54:11'on time, on budget,
0:54:11 > 0:54:14'and both the shop and the flat are rented out already.
0:54:14 > 0:54:15'Perfect.
0:54:15 > 0:54:18'Chris bought the shop and flat for £125,000
0:54:18 > 0:54:21'and spent just under £5,000 fixing it up,
0:54:21 > 0:54:23'including the usual expenses.
0:54:23 > 0:54:27'That makes a total outlay of around £130,000.
0:54:28 > 0:54:30'We asked two local property experts
0:54:30 > 0:54:33'what they thought of his work.'
0:54:35 > 0:54:39My first impression of the building is that it's nicely set up
0:54:39 > 0:54:43to be a mixed commercial and residential rent machine.
0:54:43 > 0:54:45The new owner's done the correct thing.
0:54:45 > 0:54:49He's not overspent on the property, and he put in new vinyl flooring,
0:54:49 > 0:54:52which brings out the bathroom suite that's currently there.
0:54:52 > 0:54:56The fact that it's got central heating now is a pretty big bonus
0:54:56 > 0:55:02because they would have had trouble renting it out
0:55:02 > 0:55:04at anything but a paltry figure
0:55:04 > 0:55:06had they not had central heating.
0:55:06 > 0:55:08'But there is heating,
0:55:08 > 0:55:12'and it looks like Chris has made all the right decisions here.
0:55:12 > 0:55:16'Could the refurbished flat generate a healthy rental income?'
0:55:16 > 0:55:19The current rental value of the flat
0:55:19 > 0:55:24is between £525 to £550 per calendar month.
0:55:24 > 0:55:26The flat would fairly readily rent out
0:55:26 > 0:55:30at anything between £500 and £550 per calendar month.
0:55:30 > 0:55:34That's about right. We've actually let it for £525 per month.
0:55:34 > 0:55:36That's right in the middle. We're quite happy with that.
0:55:36 > 0:55:39'It's no surprise Chris is quite happy
0:55:39 > 0:55:42'because, added to the rental income from the shop,
0:55:42 > 0:55:44'that's a total yield of 10 per cent.
0:55:44 > 0:55:46'Outstanding.
0:55:46 > 0:55:48'What if he decided to sell the property on?
0:55:48 > 0:55:52'Remember, his total spend was £130,000 here.
0:55:52 > 0:55:56'So, have his renovations added any value?'
0:55:56 > 0:55:59The resale of the property in its entirety - two components,
0:55:59 > 0:56:04commercial on the ground floor, residential on the upper floor, both generating income -
0:56:04 > 0:56:06would be in the region of £140,000.
0:56:06 > 0:56:09The resale value of both the commercial unit and the flat
0:56:09 > 0:56:13in the current market would be about £135,000.
0:56:13 > 0:56:14That's very good.
0:56:14 > 0:56:19That's slightly more than we've invested in the property itself.
0:56:19 > 0:56:22With the market as it is now, that's a very fair figure.
0:56:22 > 0:56:26As long as we've kept our money in the property, we'll be very happy.
0:56:27 > 0:56:30'It sounds like Chris has picked a winner with this property
0:56:30 > 0:56:33'and he's merely whetted his appetite to tackle the next one.
0:56:33 > 0:56:36'Hmm. Did I say "one"?'
0:56:36 > 0:56:39Yeah, we're still aiming to get 30 to 40 properties.
0:56:39 > 0:56:43If we can achieve that, we will be in a very comfortable position
0:56:43 > 0:56:46and really can just settle back a bit and enjoy them.
0:56:48 > 0:56:51That's it for the buyers on today's programme,
0:56:51 > 0:56:53but we'll have plenty more.
0:56:53 > 0:56:56So join us next time for more Homes Under The Hammer.
0:56:56 > 0:56:58- See you then.- Goodbye.- Goodbye.
0:57:19 > 0:57:22Subtitles by Red Bee Media Ltd
0:57:22 > 0:57:24E-mail subtitling@bbc.co.uk