0:00:02 > 0:00:05- Hello and welcome.- For some, buying a property is a dream.
0:00:05 > 0:00:07But for others, it is a reality.
0:00:07 > 0:00:11So are you a doer or dreamer buying your home under the hammer?
0:00:36 > 0:00:40Buying at auction is very thrilling but it's also very quick.
0:00:40 > 0:00:43You could be the owner of a property in just a few seconds.
0:00:43 > 0:00:47So if you are planning on buying at auction, make sure you're prepared.
0:00:47 > 0:00:51Yes, cos when the hammer goes down, that property it yours.
0:00:52 > 0:00:57'In South London, you know I'm always saying it's good to be close to transport links...'
0:00:57 > 0:01:01But I'm not sure whether I'd really want to be that close!
0:01:02 > 0:01:07'I'm left weighing up the options for this property in County Durham.'
0:01:07 > 0:01:11Do I like this place or not? Haven't quite decided yet.
0:01:12 > 0:01:17'While in Rochester, Kent, keeping the status quo just isn't an option.'
0:01:17 > 0:01:22In this economic climate, you can't afford to do that.
0:01:24 > 0:01:26'All these properties have been sold at auction.
0:01:26 > 0:01:31- 'We'll find out who bought them and what they paid for them when they went under the hammer.'- Sold.
0:01:36 > 0:01:39'I've come to the southeast of London to Crystal Palace.
0:01:39 > 0:01:42'There are plenty of wide-open spaces to enjoy here.
0:01:42 > 0:01:45'But nestled below the gorgeous period buildings,
0:01:45 > 0:01:50'there's one bit of space hidden away from the bustle of the city.'
0:01:52 > 0:01:55# Oh, give me land, lots of land
0:01:55 > 0:01:58# Under starry skies above
0:01:59 > 0:02:02# Don't fence me in
0:02:03 > 0:02:07I'm here to see a unique property today, so naturally, I'm quite excited.
0:02:07 > 0:02:12We've visited lots of them in the past but I've never found one in a London location.
0:02:12 > 0:02:17Today, I give you a one-bedroom bungalow built in 1935.
0:02:17 > 0:02:21It had a guide price of £175,000.
0:02:21 > 0:02:24Let's go inside and see what it's like.
0:02:26 > 0:02:30'Tucked away in the hollow of an extremely overgrown garden,
0:02:30 > 0:02:35'this single-storey bungalow comes with a series of differently-shaped outhouses.
0:02:35 > 0:02:37'With all its straight lines and corners,
0:02:37 > 0:02:41'this unusual property might not win any beauty contests
0:02:41 > 0:02:44'but there's plenty of scope for some imaginative development.'
0:02:44 > 0:02:46# I'm living in a box
0:02:46 > 0:02:50So, basically, this looks like a white square box from the outside.
0:02:50 > 0:02:54Inside, it's a bit of an unusual layout.
0:02:54 > 0:02:58You've got a shower room here and this hard ceramic tiled floor everywhere.
0:02:58 > 0:03:02It just feels a bit clinical, a bit like a dentist's waiting room.
0:03:02 > 0:03:07So this is a really good size lounge. You've got nice views of the outside.
0:03:07 > 0:03:10A bedroom leading off the lounge. Not much privacy.
0:03:10 > 0:03:14I think I would change that entrance and have it off the hallway.
0:03:14 > 0:03:18You've just got this safety glass everywhere. Look at this.
0:03:18 > 0:03:23You've got a dining space. Well, nothing to get terribly excited about here
0:03:23 > 0:03:28but it's spacious, it's detached and it had a low guide price for London.
0:03:29 > 0:03:34'I'd say a guide price of £175,000 is certainly not to be sniffed at.
0:03:34 > 0:03:41'I wonder if that low guide price is something to do with the rather whiffy issue under the bungalow.'
0:03:42 > 0:03:46This bungalow does have a slightly murky side.
0:03:46 > 0:03:48It's built over a public sewer
0:03:48 > 0:03:51and it's got special foundations as a result.
0:03:51 > 0:03:53Now, they are called pier foundations.
0:03:53 > 0:03:56They're columns that the structure is built on.
0:03:56 > 0:04:03I know it sounds a bit scary but building regulations and the council have checked this when it was built
0:04:03 > 0:04:05so everything is safe and above board.
0:04:05 > 0:04:09The only problem is that it may jeopardise any future developments.
0:04:09 > 0:04:12If you wanted to add value by extending the property out,
0:04:12 > 0:04:15you would have to obtain permission from the local water board.
0:04:15 > 0:04:18And if you wanted to add another level and go up,
0:04:18 > 0:04:23you'd have to employ a structural engineer to see if it's even possible.
0:04:24 > 0:04:26# Down in the sewer
0:04:27 > 0:04:32'On top of that, there's a covenant on the site forbidding a full-scale development.
0:04:32 > 0:04:35'There's only permission for a single dwelling here
0:04:35 > 0:04:37'so that could put developers off, too.
0:04:39 > 0:04:43'Unfortunately, there are a number of other down sides to this property.'
0:04:47 > 0:04:50Now, it's always good to be close to transport links,
0:04:50 > 0:04:54but I'm not sure whether I'd really want to be that close.
0:04:58 > 0:05:02'The railway's a bit too close for comfort. But what about the neighbours?
0:05:02 > 0:05:07'Plans have been submitted to build a small tower block overlooking this site.
0:05:07 > 0:05:11'And if you think you can easily clear that foliage, think again.'
0:05:11 > 0:05:16The trees, yes, you've guessed it, they've got tree preservation orders on them,
0:05:16 > 0:05:20so before you get your chainsaw revving, you've got to think twice.
0:05:21 > 0:05:26'But it's not all negatives. Those outhouses at the entrance come with the property
0:05:26 > 0:05:29'and have exciting scope for development.'
0:05:29 > 0:05:33Now for some background history. This place used to house lots of cats,
0:05:33 > 0:05:38around 300 at one point in fact. It used to be a cat sanctuary.
0:05:38 > 0:05:42But I think you could really utilise this space. It could become a studio,
0:05:42 > 0:05:47a home office, even create some off-road parking or a garage.
0:05:47 > 0:05:50It's a bit extra that's included in the price.
0:05:50 > 0:05:54I like that. And at last, something positive.
0:05:54 > 0:05:57# What's new, pussycat? Whoa-whoa-whoa-ho
0:05:57 > 0:06:02# What's new, pussycat? Whoa-whoa-whoa-ho-whoa
0:06:02 > 0:06:07'The cats may be long gone, but I don't think that whoever got their paws on this place
0:06:07 > 0:06:10'will find its potential has disappeared with them.
0:06:13 > 0:06:16'What does a local property expert think?'
0:06:22 > 0:06:25It is a very unusual property. When you come down here,
0:06:25 > 0:06:29you wouldn't know exactly where you were. You could be anywhere,
0:06:29 > 0:06:32which is a very good thing. It means that somebody could live here
0:06:32 > 0:06:37and get away from it all. There is a lot of scope with it going upwards.
0:06:37 > 0:06:40But it's one of those things you'd have to look into deeply before you did it.
0:06:40 > 0:06:44'If the new owner went for a straightforward renovation,
0:06:44 > 0:06:47'how much could they expect to rent this one-bed bungalow out for?'
0:06:49 > 0:06:53In terms of rental, because of the unusual nature of the property and where it's located,
0:06:53 > 0:06:58I think you'll get, top end in the summer, £800 per calendar month, £850 per calendar month
0:06:58 > 0:07:01and in the winter time, £750 per calendar month,
0:07:01 > 0:07:05so it would be better to start rentals in the summer or spring cos you'll get more money.
0:07:05 > 0:07:08'What about resale values?'
0:07:08 > 0:07:14If you refurbed it as a one-bed, you'd put it back on the market around £230,000.
0:07:15 > 0:07:20'If the buyer chose to add another floor, turning it into a three-bed property,
0:07:20 > 0:07:22'what could that sell for?'
0:07:23 > 0:07:27I think they'll be looking at probably £300,000, around that sort of figure,
0:07:27 > 0:07:32maybe a little more because of the unusualness of it. But that can work against you, too.
0:07:32 > 0:07:36Floating foundations, issues surrounding future extensions,
0:07:36 > 0:07:42a train track running past the property and the threat of a development spoiling your view.
0:07:42 > 0:07:48This unassuming little bungalow does have a number of sticking points, but I still love it.
0:07:48 > 0:07:52It's unusual and it's just got something about it.
0:07:52 > 0:07:54Let's see who wanted it when we go to auction.
0:07:54 > 0:07:58'It was one of the last lots of the day,
0:07:58 > 0:08:00'but some bidders were determined to stick it out.'
0:08:00 > 0:08:04Who'd like to get me started on this, lot 122?
0:08:04 > 0:08:06160 anywhere?
0:08:06 > 0:08:08160.
0:08:08 > 0:08:10How much? 165?
0:08:10 > 0:08:14165. 166?
0:08:14 > 0:08:17166. 167.
0:08:17 > 0:08:19168.
0:08:20 > 0:08:22168. 169.
0:08:22 > 0:08:24170.
0:08:24 > 0:08:27170, new place. 171.
0:08:27 > 0:08:28172.
0:08:28 > 0:08:30173.
0:08:30 > 0:08:32174.
0:08:32 > 0:08:34174. 175.
0:08:34 > 0:08:37176. 177.
0:08:37 > 0:08:40178. 179.
0:08:40 > 0:08:44180, more competition. 181.
0:08:44 > 0:08:46182. 183.
0:08:46 > 0:08:49184. 185.
0:08:49 > 0:08:52186. 187.
0:08:52 > 0:08:54188. 189.
0:08:54 > 0:08:56190.
0:08:56 > 0:09:00'This is exactly what you want if you're a seller at auction,
0:09:00 > 0:09:03'two bidders ping-ponging the price up furiously.
0:09:03 > 0:09:07'Let's rejoin this pair £18,000 later.'
0:09:07 > 0:09:09208.
0:09:09 > 0:09:11209. 210.
0:09:11 > 0:09:14211. 212.
0:09:14 > 0:09:18213. 214. 214, sir?
0:09:18 > 0:09:22No? If not, back to you, sir.
0:09:22 > 0:09:25£213,000.
0:09:25 > 0:09:28213 for the first. 213 for the second.
0:09:28 > 0:09:32- 213 for the third and final time. All done? - HAMMER BANGS
0:09:32 > 0:09:35Sold, 213. Well bought.
0:09:35 > 0:09:39'At last. Well, it was an epic battle, but he's got there in the end.
0:09:39 > 0:09:44'It was Rob who made that final bid of £213,000.
0:09:46 > 0:09:51'Rob's an IT manager and bought the bungalow so that he could eventually move into it with his girlfriend.
0:09:51 > 0:09:55'I caught up with him there to find out what he's got planned.'
0:09:56 > 0:10:01Rob, congratulations. I bet you're really excited about having bought this at auction.
0:10:01 > 0:10:06I am. I'm very excited. It's such a lovely place. Very unusual.
0:10:06 > 0:10:11- So you obviously weren't put off by the railway line that's very close. - No. It's very close
0:10:11 > 0:10:14but the railway isn't a regular line
0:10:14 > 0:10:17and, to be honest, you get used to it very quickly,
0:10:17 > 0:10:19so it wasn't such a negative factor for us.
0:10:19 > 0:10:23Let's talk about the property that you've got here.
0:10:23 > 0:10:25Are you going to change the layout at all?
0:10:25 > 0:10:30I think I would firstly look at whether we're going to put a second floor on
0:10:30 > 0:10:34and if we were to do that, then down here would be the bedrooms.
0:10:34 > 0:10:39So then we would think about laying it out in the right way, perhaps putting in another bathroom, as well.
0:10:40 > 0:10:44'The fact that Rob isn't going to extend around the building
0:10:44 > 0:10:48'means that he avoids any potential problems with the pier foundations over the sewer.
0:10:48 > 0:10:53'His designs for the second-floor extension may involve a glass structure
0:10:53 > 0:10:55'which will let a lot more light in.
0:10:55 > 0:10:58'How heavy on the pocket will that be?'
0:11:00 > 0:11:06I think what I'd be prepared to spend is something in the order of £50,000 to £70,000.
0:11:06 > 0:11:10And, at the moment, I've just got to try and find out what I could get for that.
0:11:10 > 0:11:13And depending on what the foundations are,
0:11:13 > 0:11:16what materials you would build up on the first floor,
0:11:16 > 0:11:21would determined whether it can be done for that kind of price.
0:11:21 > 0:11:25What are you going to do with the rest of the land you're going to have?
0:11:25 > 0:11:27I think, certainly out the back, there's more land
0:11:27 > 0:11:32and I was thinking for a quieter garden, maybe something like a Japanese garden
0:11:32 > 0:11:37with a water feature might be quite a nice retreat to go to,
0:11:37 > 0:11:40a sanctuary within a sanctuary you could say.
0:11:40 > 0:11:44You've got tree preservation orders. How will that affect your development?
0:11:44 > 0:11:49Well, probably I wouldn't build near to where the tree preservation order covers.
0:11:49 > 0:11:52It's quite a large area but it's at the top of the garden.
0:11:52 > 0:11:56But what I would hope to do is to manage the trees
0:11:56 > 0:12:02and maybe thin them out a little so that we can get more light in this area.
0:12:02 > 0:12:07- Ah, wonderful. And what about any pets? You've got an amazing cattery out there.- Yes, we have.
0:12:07 > 0:12:11We'd certainly like to have some pets, perhaps one cat, not 300.
0:12:11 > 0:12:17One or two possibly. And we're also hoping to have some chickens.
0:12:17 > 0:12:23- Really?- And keep those perhaps at the top of the garden and have fresh eggs for breakfast.
0:12:23 > 0:12:28- Fantastic. So a little mini farm in London. - Exactly. A mini city farm.
0:12:28 > 0:12:32'It looks like creating a mini farm will be one of Rob's first jobs.
0:12:32 > 0:12:36'The long-term plan is to apply for planning permission and build another floor.
0:12:36 > 0:12:41'Meanwhile, he plans to refurbish the bungalow and make it home for himself and his partner Beverley,
0:12:41 > 0:12:44'along with the animals, of course.'
0:12:44 > 0:12:47# My animal home
0:12:47 > 0:12:50What I'm really pleased about is the fact that there was a train line,
0:12:50 > 0:12:54a sewer, lots of these things that would've put so many people off,
0:12:54 > 0:12:58and it just hasn't put you off whatsoever because you want this as your home.
0:12:58 > 0:13:01I persevered with this one cos I did like it
0:13:01 > 0:13:05and I'm still happy about it, so those negative aspects
0:13:05 > 0:13:09haven't detracted from the enjoyment that I've had so far.
0:13:09 > 0:13:13I'm very excited for you and cannot wait to see what you do here.
0:13:13 > 0:13:17- It's been lovely meeting you. Congratulations. - Thank you very much.
0:13:18 > 0:13:21Rob wants to create a mini city farm in South London.
0:13:21 > 0:13:25I think that's a great idea! He's certainly got the outside space to do it.
0:13:25 > 0:13:28But how will those chickens feel about trains whizzing past them?
0:13:28 > 0:13:32More importantly, how will Rob get on with this renovation?
0:13:32 > 0:13:36Stay tuned and you can find out what happens later on in the programme.
0:13:42 > 0:13:46'This is Seaham in County Durham,
0:13:46 > 0:13:49'rich is mining history and also in a spectacular coastline
0:13:49 > 0:13:53'neglected during the Northeast's industrial years.
0:13:53 > 0:13:56'Today, Seaham's harbour and beaches are protected
0:13:56 > 0:13:59'and like much of the town, have been regenerated.
0:13:59 > 0:14:05'That's led to 159% property-price increases over the last decade.
0:14:05 > 0:14:08'So if you want to buy here, you best be quick
0:14:08 > 0:14:10'before those bargains wash away.'
0:14:10 > 0:14:12# Waves
0:14:14 > 0:14:17# Coming by
0:14:19 > 0:14:24# Goodbye, goodbye
0:14:24 > 0:14:27So with such a massive increase in prices,
0:14:27 > 0:14:31you might think that property round here is going to be really expensive. Well, not so.
0:14:31 > 0:14:35The average price of a house round here is 94,000 quid.
0:14:35 > 0:14:38That's less than the national average for sure.
0:14:38 > 0:14:44And what am I here to see? Two-bedroom bungalow, had a guide price of just 35,000 quid.
0:14:44 > 0:14:47This is it. Doesn't look too bad from the outside.
0:14:47 > 0:14:50But I can't quite decide if that's the back door or the front door.
0:14:50 > 0:14:52# Back to front, front to back
0:14:52 > 0:14:55# Will you come backwards with me?
0:14:56 > 0:14:58# Backwards with me
0:15:00 > 0:15:05Well, whatever, it gets you into the house at least and straight into the kitchen.
0:15:05 > 0:15:09The kitchen itself, not huge but not in bad condition
0:15:09 > 0:15:15and it's nice that you've got the appliances, so if you're renting this place out, it saves money.
0:15:15 > 0:15:20Through the kitchen into your lounge and not a bad size space.
0:15:20 > 0:15:27Things like that fireplace, it's not bad. The rest of it does feel a little bit dated.
0:15:27 > 0:15:31Do I like this place or not? I haven't quite decided yet.
0:15:33 > 0:15:36'But the bungalow does look as though it's in good condition.
0:15:36 > 0:15:39'There are two decent size bedrooms.
0:15:44 > 0:15:48'A slightly out-of-date but perfectly respectable bathroom.
0:15:48 > 0:15:55'But to get the full picture, we need to take a look from the back, or the front, whichever it is.'
0:15:55 > 0:16:01At the opposite side of the property to where I came in, you find what I think is the front entrance.
0:16:01 > 0:16:04Although, to be fair, I don't think many people use it.
0:16:04 > 0:16:10You also find a pretty decent size garden. It's mostly laid to flagstones here.
0:16:10 > 0:16:17But it's not a bad size and, even better, it opens out onto this woodland area which is really nice.
0:16:17 > 0:16:23But you can also see what some other people have done to their properties, extended slightly.
0:16:23 > 0:16:29Is that a good idea? It all depends on how much it's going to cost and what value it would add.
0:16:29 > 0:16:33Something you might want to consider is some patio doors coming out here.
0:16:33 > 0:16:39So you've just got to figure out, is it worth doing? Adding it up, I think probably not.
0:16:39 > 0:16:43'That wonderful view could be just what buyers are looking for.
0:16:43 > 0:16:46'But they have to be careful not to spend too much
0:16:46 > 0:16:50'as there's a definite ceiling price on bungalows around here.
0:16:50 > 0:16:54'It may be small, but for someone looking to get their foot on the property ladder,
0:16:54 > 0:17:01'it could be a great opportunity, particularly as it is being sold under a local auction initiative.'
0:17:01 > 0:17:07If you fancy the idea of buying at auction but haven't got the ten percent deposit that's required,
0:17:07 > 0:17:14what can you do? Well, in this part of the UK, they've come up with a really interesting idea.
0:17:14 > 0:17:20It's called Option Two and it means if you go to the auction and you're successful in bidding,
0:17:20 > 0:17:23instead of the usual "hammer goes down, you have exchanged,"
0:17:23 > 0:17:30the hammer goes down and you have to basically pay £3,000, no matter what the cost of the property is.
0:17:30 > 0:17:34You've then got 28 days to exchange contracts and a further 14 to complete.
0:17:34 > 0:17:38It gives you more time to sort out your mortgage, you have to find less deposit
0:17:38 > 0:17:45and it really opens up the market to people who maybe wouldn't be able to afford it otherwise. Great idea.
0:17:46 > 0:17:50'It's up to the seller to decide to auction the property under Option Two.
0:17:50 > 0:17:55'Although it makes it easier for the buyer to arrange a mortgage, there are down sides.
0:17:55 > 0:18:00'For an Option Two property, the seller doesn't have to provide a legal pack
0:18:00 > 0:18:02'so you do need to do your research
0:18:02 > 0:18:05'before committing to that £3,000 deposit.
0:18:05 > 0:18:09'We asked a local estate agent for his thoughts
0:18:09 > 0:18:11'on this bungalow's potential.'
0:18:11 > 0:18:15It doesn't need a lot doing to it. It has UPVC double glazing
0:18:15 > 0:18:17and a new combi boiler, so it doesn't need
0:18:17 > 0:18:19a great deal of money spending on it
0:18:19 > 0:18:21to bring it up to modern-day specifications.
0:18:21 > 0:18:26'Not much to spend on the interior, then.
0:18:26 > 0:18:30'But would it be worth going to the expense of adding an extension?'
0:18:32 > 0:18:35It's very common for properties round here to be extended.
0:18:35 > 0:18:42With this property, it's quite close-knit and there's not a great deal of room out the back to extend
0:18:42 > 0:18:46so I think possibly a loft extension would be a great asset to the home.
0:18:46 > 0:18:49It might not make a big difference in terms of value
0:18:49 > 0:18:52but if it was a family home, it'd be a great addition.
0:18:52 > 0:18:56'The bungalow had a guide price of just £35,000.
0:18:56 > 0:18:59'So what's his estimate of the current value?'
0:18:59 > 0:19:03Currently I think this property's worth around about £75,000.
0:19:03 > 0:19:06I think, if you were to spend £10,000 on it,
0:19:06 > 0:19:09you could probably gain around £90,000.
0:19:11 > 0:19:15'Renting it out could make sense, but would that extension be worth it?'
0:19:15 > 0:19:18If you were to leave the property as it is,
0:19:18 > 0:19:20you'd achieve about £450 per calendar month.
0:19:20 > 0:19:25If you were to put the loft extension in, you'd probably gain about £500 per calendar month.
0:19:27 > 0:19:33So, all in all, a solid little property that I think would suit a variety of buyers.
0:19:33 > 0:19:35And at the guide price, money to be made,
0:19:35 > 0:19:39despite the fact that we have seen huge increases in prices here.
0:19:39 > 0:19:43Let's see who fancied the opportunity when it went under the hammer.
0:19:43 > 0:19:46We now move to Seaham.
0:19:46 > 0:19:49Prime position with elevated southward views.
0:19:49 > 0:19:53Do we have any bids at £35,000? Right in the centre at 35.
0:19:53 > 0:19:5737 on the front row. 39 bid. 41.
0:19:57 > 0:20:0143. 45. 47.
0:20:01 > 0:20:0349. 51?
0:20:03 > 0:20:0649 on the front. You're out on the telephone. I'll take one.
0:20:06 > 0:20:0950,000 at the far back. 51.
0:20:10 > 0:20:1250 and a half. 51?
0:20:13 > 0:20:1651 bid. And a half. 52.
0:20:16 > 0:20:19And a half. Gentleman in the front at 52 and a half.
0:20:19 > 0:20:2353 bid. And a half. 54.
0:20:23 > 0:20:2654 bid. And a half.
0:20:26 > 0:20:2855. 55 bid.
0:20:28 > 0:20:30And a half.
0:20:30 > 0:20:3256.
0:20:32 > 0:20:34Gentleman on the front row, 55 and a half.
0:20:34 > 0:20:38It's your last chance on the phone. Gentleman on the front row.
0:20:38 > 0:20:41I'm selling it once, 55 and a half.
0:20:41 > 0:20:44Selling it twice at... A new bidder's come in, 56.
0:20:44 > 0:20:47And a half?
0:20:47 > 0:20:52New bidder at 56 on the right hand side. I'll take 250. Selling at 56.
0:20:52 > 0:20:54250?
0:20:54 > 0:20:58Selling once at 56. Selling it twice at 56.
0:20:58 > 0:21:02Sold to the gentleman on the right hand side, £56,000.
0:21:02 > 0:21:08'The successful last-minute bid of 56,000 came from Kathryn and her husband Neil.
0:21:08 > 0:21:13'Kathryn's currently on maternity leave from her job with a firm of solicitors
0:21:13 > 0:21:16'and Neil's an off-shore crane engineer.
0:21:16 > 0:21:21'They live locally with their two children, daughter Maddie and baby boy Mason,
0:21:21 > 0:21:23'in a house the couple built themselves.
0:21:23 > 0:21:26'I couldn't wait to find out their plans for this property.'
0:21:28 > 0:21:33Kathryn, Neil, lovely to meet you both. Congratulations. Tell me why you wanted to buy this place.
0:21:33 > 0:21:38We saw this property, it seems a lovely house, it could be a lovely family home again.
0:21:38 > 0:21:41It's just a lovely little area.
0:21:41 > 0:21:44Right. So why exactly have you bought it? To live in?
0:21:44 > 0:21:48No, we bought it to renovate it and sell on pretty soon, hopefully.
0:21:48 > 0:21:50Is this something you've done before?
0:21:50 > 0:21:53We've never bought to renovate and sell on
0:21:53 > 0:21:56but we've renovated a property that we've lived in
0:21:56 > 0:21:59and we've also done a self-build which we currently live in.
0:22:00 > 0:22:04'So they've had a fair bit of experience in building and renovation, then.
0:22:04 > 0:22:08'Exactly how much do they plan to do here?'
0:22:08 > 0:22:11We plan on doing the basics, new kitchen,
0:22:11 > 0:22:14new bathroom suite, rewire,
0:22:14 > 0:22:17stripping all the old decor and redecorating.
0:22:17 > 0:22:21The bare minimum, but enough to put it back on the market.
0:22:21 > 0:22:25- So no plans to extend, taking out walls, anything like that?- No.
0:22:25 > 0:22:29The property's not big enough for any major changes to it.
0:22:29 > 0:22:32Just keeping it the same, basically, but a new facelift.
0:22:32 > 0:22:35How much money have you got set aside to do it?
0:22:35 > 0:22:41We've got £10,000. That's what we hope we can do an awful lot with, £10,000.
0:22:41 > 0:22:43It's only a little property.
0:22:43 > 0:22:48'Neil's a qualified electrician and Kathryn's brother's a plumber,
0:22:48 > 0:22:52'so they'll all be working together to make things happen for this little bungalow.'
0:22:52 > 0:22:54# Let's make it happen
0:22:56 > 0:23:00# Give it up, step on out, I know where, you know how
0:23:00 > 0:23:02# Let's make it happen
0:23:02 > 0:23:06'They're planning the work around Neil's engineering job off shore.
0:23:06 > 0:23:08'How long does he think it will take?'
0:23:11 > 0:23:1412 weeks is what we're aiming for.
0:23:14 > 0:23:19Because I work away, I've got three weeks left of this leave and then I have to go to work,
0:23:19 > 0:23:22and another four weeks when I return, so hopefully in that time
0:23:22 > 0:23:26we should have it turned round and get it to a point where we can put it back on the market.
0:23:26 > 0:23:30- Great. Congratulations. Well done. - Thank you!
0:23:30 > 0:23:35Well, Kathryn and Neil have certainly done well here and there is money to be made.
0:23:35 > 0:23:38But can they sell it within their required timescale?
0:23:38 > 0:23:42I'm not so sure. You can find out later on in the show.
0:23:43 > 0:23:47'Coming up, in Kent, it's time to play the numbers game.'
0:23:47 > 0:23:50Whoever takes this on had better be good with figures
0:23:50 > 0:23:52to stand a chance of making a profit here.
0:23:53 > 0:23:59'Back in County Durham, we hear why there's been a break in Neil and Kathryn's renovation work.'
0:23:59 > 0:24:03Till he gets his arm fixed, he isn't going to be touching that for a while.
0:24:04 > 0:24:08'But first, we return to South London
0:24:08 > 0:24:11'to see why Rob's square house ticks all the boxes.'
0:24:11 > 0:24:13It's a beautiful home for us.
0:24:18 > 0:24:22'It was in Southeast London where I first found this one-bedroom bungalow
0:24:22 > 0:24:25'which went to auction with a guide price of £175,000.
0:24:25 > 0:24:28'When I say found, I do mean found,
0:24:28 > 0:24:33'because it was hidden away behind fencing in its own little valley.'
0:24:33 > 0:24:36# Live in a hiding place
0:24:36 > 0:24:39# It's the only way to feel safe
0:24:39 > 0:24:41'At first, this secluded spot appears idyllic,
0:24:41 > 0:24:44'a sanctuary from the London sprawl.
0:24:46 > 0:24:48'However, there were a few down sides.
0:24:48 > 0:24:52'It was next to a railway track, built over a public sewer
0:24:52 > 0:24:54'and was formally a cat sanctuary.
0:24:54 > 0:24:59'But for IT consultant Rob, none of these issues were catastrophic.
0:24:59 > 0:25:02'He paid £213,000 at auction
0:25:02 > 0:25:06'to turn the bungalow and the plot into his new home.'
0:25:06 > 0:25:11What I'm really pleased about is the fact that there was a train line, a sewer,
0:25:11 > 0:25:16lots of things that would've put so many people off and it just hasn't put you off whatsoever
0:25:16 > 0:25:21- because you want this as your home. - Yeah, I persevered with this one cos I did like it
0:25:21 > 0:25:23and I'm still happy about it.
0:25:23 > 0:25:26'Rob was positive he'd made the right decision.
0:25:26 > 0:25:29'His dream was to turn the garden into a mini city farm
0:25:29 > 0:25:32'where he could raise chickens and grown vegetables.
0:25:32 > 0:25:36'He had a long-term plan to add another floor to the house to create more space.
0:25:36 > 0:25:43'But his main aim was to make this unusual property a relaxing and enjoyable home.
0:25:47 > 0:25:52'So seven months on, is Rob still happy with his auction purchase?
0:25:54 > 0:25:59'Well, from the outside, new paintwork has emphasised the property's shape.'
0:25:59 > 0:26:01# It's hip to be square
0:26:01 > 0:26:05- 'A unique design.' - # Hip to be square
0:26:08 > 0:26:14'Well, this square building has been transformed from a cold shell to a warm and inviting home
0:26:14 > 0:26:18'with splashes of colour lifting the previously dull rooms.
0:26:25 > 0:26:27'By making small but subtle changes,
0:26:27 > 0:26:31'Rob's taken what was already here and made it look as good as new.'
0:26:33 > 0:26:36Yes, we've spent quite a number of months now
0:26:36 > 0:26:39mending and changing things,
0:26:39 > 0:26:42painting in the colours that we've chosen.
0:26:42 > 0:26:47The other major change is we've taken the gas fire out that was in the living room
0:26:47 > 0:26:50and gone back to the original coal fire.
0:26:50 > 0:26:52So I think we've put our own stamp on it now
0:26:52 > 0:26:56and for that reason, it definitely feels like our home.
0:26:56 > 0:26:59'He's undoubtedly made his mark on the interior space.
0:26:59 > 0:27:04But for Rob, the land that came with the bungalow was almost as important as the property itself.
0:27:04 > 0:27:09'So could he overcome all the obstacles to brighten up that rambling and overgrown garden?'
0:27:11 > 0:27:18All of the trees in the upper half of the garden are subject to a tree preservation order.
0:27:18 > 0:27:22But we applied to the local council to have two of them removed
0:27:22 > 0:27:25and they were two yew trees that were very dense in their foliage
0:27:25 > 0:27:27so didn't let much light in.
0:27:27 > 0:27:31So now that they've been removed, it's much brighter, I think.
0:27:31 > 0:27:37'It's amazing how much brighter and less oppressive the site feels with the trees removed.
0:27:37 > 0:27:39'Rob's continued to work his magic
0:27:39 > 0:27:45'by adding character to those outbuildings that used to house the old cattery.'
0:27:45 > 0:27:48This outbuilding used to have a wire frontage to it.
0:27:48 > 0:27:51A local handyman did the cladding.
0:27:51 > 0:27:55The window came from a local flea market.
0:27:55 > 0:28:02And the windows down here came from a recycling website and were kindly donated by a person who lives nearby.
0:28:02 > 0:28:04And I think they look great.
0:28:04 > 0:28:07'So the cattery may now be a storage shed
0:28:07 > 0:28:10'and there might only be one cat on the premises,
0:28:10 > 0:28:13'but there are additional animals, too.'
0:28:14 > 0:28:21We've got four chickens, Blackberry, Daisy, Iris and this is Darcy here.
0:28:23 > 0:28:28And we've got two pigs. This is Plum and this is Tiger.
0:28:28 > 0:28:34'Rob's well on the way to creating the smallholding he'd hoped for and the bungalow looks great, as well.
0:28:34 > 0:28:36'So is that the end of the tale?
0:28:36 > 0:28:41'Only he knows the answer when it comes to the plans for that second floor extension.'
0:28:41 > 0:28:45It's still a work in progress. We've consulted a number of architects
0:28:45 > 0:28:48and also structural engineers
0:28:48 > 0:28:53and I think that's something we'll be taking up and moving up.
0:28:54 > 0:29:00'He hopes to get at least an extra bedroom up there, possibly an en suite and maybe a lounge.
0:29:00 > 0:29:06'Potentially, that's an expensive project. How much has it cost to complete phase one?'
0:29:06 > 0:29:09We've spent about £2,500.
0:29:09 > 0:29:15And we've basically been doing it at a DIY rate
0:29:15 > 0:29:17and that's taken about six months.
0:29:18 > 0:29:24'£2,500 spent on top of the £213,000 purchase price
0:29:24 > 0:29:30'with costs and fees would take Rob's total outlay to about £217,000.
0:29:30 > 0:29:34'So, has it been a good move? What do the two local estate agents think?'
0:29:34 > 0:29:38Second time back, the loft conversion hasn't been done yet.
0:29:38 > 0:29:41However, he has changed the gardens, made it very liveable.
0:29:41 > 0:29:45There's a few animals running around, which is great. Feels very homely.
0:29:45 > 0:29:51He's put a splash of paint on, put pictures up, furniture in, cleaned everything up, it looks really nice.
0:29:56 > 0:29:59I'm blown away by how unique it is.
0:29:59 > 0:30:01Totally different to anything I've seen in the area,
0:30:01 > 0:30:04not just because of the land, but just the style of house.
0:30:04 > 0:30:09Being close to a railway, you'd think instantly that would put a downer on things,
0:30:09 > 0:30:14but it doesn't really come into it because the property's so unique.
0:30:14 > 0:30:17'This is certainly not an average run-of-the-mill property.
0:30:17 > 0:30:21'But has Rob invested £217,000 wisely?'
0:30:23 > 0:30:25If I was currently putting it on the market as it is,
0:30:25 > 0:30:30I'd put it on around the £250,000 mark. However, what sort of price it'll get
0:30:30 > 0:30:35depends on what somebody's prepared to pay. It's unusual. You'd see what offers you got.
0:30:35 > 0:30:40In the current condition, in the current market, I'd suggest £250,000
0:30:40 > 0:30:44just because of the stamp duty threshold. Any higher would be pushing it.
0:30:44 > 0:30:47Great to know, but for us, it's a place to live
0:30:47 > 0:30:50so we're not intending to sell it any time in the near future.
0:30:50 > 0:30:52But I'm very happy with that.
0:30:52 > 0:30:58'That's encouraging. A potential pre-tax profit of just over £30,000.
0:30:58 > 0:31:01'If Rob went for a big glass extension to add another floor,
0:31:01 > 0:31:04'what kind of return could he expect then?'
0:31:05 > 0:31:10If they maximised the space, put the extension on the roof, depending on the design,
0:31:10 > 0:31:13I believe it'll achieve around £300,000.
0:31:13 > 0:31:18Should there be an extension pushing upwards, two bedrooms,
0:31:18 > 0:31:23I think you would be looking at an asking price of £325,000.
0:31:23 > 0:31:27'Rob estimates a budget of £70,000 to £80,000 for building the extension.
0:31:27 > 0:31:33'So at those valuations, it wouldn't generate much extra profit if he was to sell the property.
0:31:33 > 0:31:36'But for Rob, this has never been about making money.
0:31:36 > 0:31:40'It's about creating country living style in a city space.'
0:31:40 > 0:31:45We've had a great time living here and it feels like a home where we can go out into the garden
0:31:45 > 0:31:48and enjoy the sounds of the countryside
0:31:48 > 0:31:52and it's a beautiful home for us.
0:31:52 > 0:31:56# Yeah, going back to country living
0:31:56 > 0:32:00# That's where I was meant to be
0:32:00 > 0:32:04# Gonna take life nice and easy
0:32:04 > 0:32:08# Going down to my own home town
0:32:08 > 0:32:11# Gonna live as I please
0:32:12 > 0:32:16'And when the sun's out, like today, I can really see why Rob is so content
0:32:16 > 0:32:19'with his country retreat in the city.'
0:32:23 > 0:32:26Today I've travelled to Rochester in Kent.
0:32:26 > 0:32:29Charles Dickens called this city home
0:32:29 > 0:32:32and penned many of his works whilst living in the town.
0:32:32 > 0:32:39The question is, will today's auction property be a bleak house that's fallen on hard times?
0:32:39 > 0:32:42Or will it fill me with great expectations?
0:32:42 > 0:32:47# Every day, every day, every day
0:32:47 > 0:32:49# Every day I write the book
0:32:50 > 0:32:54'Rochester may have changed a little since Dickens' time.
0:32:54 > 0:32:59'Certainly the amount of housing stock has significantly increased. But then so have the prices.'
0:32:59 > 0:33:03# Every day, every day, every day
0:33:03 > 0:33:06The average price of a property in England and Wales
0:33:06 > 0:33:09stands at around £165,000.
0:33:09 > 0:33:14I'm here to see a property that had a guide of just 80 to 85 grand,
0:33:14 > 0:33:18so well below the current average, which is good news.
0:33:18 > 0:33:23And I bring more glad tidings, because it looks to be in really good condition.
0:33:23 > 0:33:27You've got sash windows, exposed brickwork, and look!
0:33:27 > 0:33:30It's even got its own Victorian boot scraper.
0:33:31 > 0:33:34Now, all set to get on with my viewing. Let's take a look inside.
0:33:34 > 0:33:39'There's no doubt this looks pretty good from the outside with that nice red brickwork
0:33:39 > 0:33:42'and sash windows giving the front a tidy appearance.
0:33:42 > 0:33:45'It's not too shabby from the back, either.
0:33:45 > 0:33:47'But how does the interior fare?'
0:33:47 > 0:33:52Now, first of all, this needs to go. It's like a sort of Swedish shower effect, I think.
0:33:52 > 0:33:57Tongue and groove everywhere. You could take this out because it really eats into the room.
0:33:57 > 0:34:02You've not got a huge space in here anyway. Loads of woodchip wallpaper. That's got to come off.
0:34:02 > 0:34:05But you've got a fireplace, so you could upgrade that,
0:34:05 > 0:34:08that could feel lovely and special and warm.
0:34:08 > 0:34:13You've got these lovely little architectural features here, as well. That adds something.
0:34:13 > 0:34:18Your second reception room. Now, this feels a little bit bigger.
0:34:18 > 0:34:20You've got a nice storage cupboard over there.
0:34:20 > 0:34:23It just needs a bit of attention, a bit of TLC.
0:34:23 > 0:34:29There's no carpet anywhere. I think once you got your paintbrush out and your stripper for this stuff,
0:34:29 > 0:34:34you'll be all right. The kitchen. Now, it's actually not a bad size.
0:34:34 > 0:34:40You obviously need to upgrade this, get new units in and really give it a nice splash of paint,
0:34:40 > 0:34:43but actually, I think it's all right.
0:34:43 > 0:34:45# All right now
0:34:45 > 0:34:50# Baby it's all right now
0:34:50 > 0:34:53'Yes, with the boiler looking in pretty decent nick
0:34:53 > 0:34:58'and the downstairs rooms generally all fine, I can see this as a solid little rental property.
0:35:05 > 0:35:08'Upstairs, the two bedrooms are a good size.
0:35:08 > 0:35:10'There's just one problem.'
0:35:13 > 0:35:17The big down side for me is this bathroom over here,
0:35:17 > 0:35:21which I have to say is a really big bathroom.
0:35:21 > 0:35:25It comes off this bedroom only, which is never ideal.
0:35:25 > 0:35:29Now, I would definitely think about creating a partition up here
0:35:29 > 0:35:33along this wall perhaps and making some kind of corridor
0:35:33 > 0:35:36so both bedrooms have got their own independent access.
0:35:36 > 0:35:42This house isn't listed so you will not require planning permission, but you will need building regs.
0:35:42 > 0:35:46Leaving things as they are will no doubt put buyers and tenants off.
0:35:46 > 0:35:51And in this economic climate, you can't afford to do that.
0:35:51 > 0:35:53# I said something better change
0:35:55 > 0:35:58# I said something better change
0:35:58 > 0:36:01'There definitely needs to be a change here somehow.
0:36:01 > 0:36:05'The route to the bathroom needs to be partitioned off or the layout altered
0:36:05 > 0:36:10'because a bathroom only reached through a bedroom will put potential buyers or tenants off.
0:36:13 > 0:36:17'It might be possible to extend out the back. There's already an outhouse with a toilet in it
0:36:17 > 0:36:21'and there's certainly space, but this type of house will have a ceiling value
0:36:21 > 0:36:24'and building an extension could well exceed that.
0:36:25 > 0:36:28'What does a local estate agent think?'
0:36:30 > 0:36:33The property isn't as bad as you think it's going to be.
0:36:33 > 0:36:36It's got central heating already
0:36:36 > 0:36:39and the decor is OK, the walls look not too bad,
0:36:39 > 0:36:43so I think, as a base, it's quite a good property.
0:36:43 > 0:36:45'Structurally, it might be all sound,
0:36:45 > 0:36:48'but could the layout detract from this house's appeal?'
0:36:48 > 0:36:52One of the problems with the property is that the bathroom is off a bedroom.
0:36:52 > 0:36:57It's a difficult one, because if you're going to try and start to turn stairs and alter the layout,
0:36:57 > 0:37:00then you're talking about quite a bit of money.
0:37:00 > 0:37:03It does stop some people liking the property
0:37:03 > 0:37:08but generally, whether you go for selling or rental, some people accept it.
0:37:08 > 0:37:12'Let's talk figures. How much could someone make here?'
0:37:12 > 0:37:16Rental-wise, I'd be looking at around about £600 per calendar month.
0:37:16 > 0:37:22I think this property would sell in the region of £120,000 to £125,000.
0:37:22 > 0:37:26'That £80,000 to £85,000 guide price did look tempting
0:37:26 > 0:37:31'as both rental and resale figures are potentially encouraging.'
0:37:31 > 0:37:35It's a nice enough house but it does need some money spending on it.
0:37:35 > 0:37:38Whoever takes this on had better be good with figures
0:37:38 > 0:37:40to stand a chance of making a profit here.
0:37:40 > 0:37:43Let's find out who went for it as we go to auction.
0:37:46 > 0:37:50Lot 59. Terraced house, two bedrooms, in need of improvement.
0:37:50 > 0:37:53Start me where you will. 70 to get me on the way. £70,000.
0:37:53 > 0:37:57I'm on the way at 70. And 72. 72.
0:37:57 > 0:38:0172. And 4. 74. And 6.
0:38:01 > 0:38:0476. And 8. And 80.
0:38:04 > 0:38:07And 2. And 4. 84. And 6.
0:38:07 > 0:38:10£84,000 I've got. 86 I'm looking for.
0:38:10 > 0:38:1586 anywhere else? 86 I have in a fresh place. 88 it's against you.
0:38:15 > 0:38:18And 90. At 90.
0:38:18 > 0:38:21At 90,000. And 2.
0:38:21 > 0:38:2292. 91.
0:38:22 > 0:38:25And 2. £92,000.
0:38:25 > 0:38:28And 3. 93. And 4.
0:38:28 > 0:38:3094,000. 5.
0:38:30 > 0:38:3295. And 6.
0:38:32 > 0:38:35At £95,000 standing on the left hand side.
0:38:35 > 0:38:3996 I'm looking for. 96, he's back. 97.
0:38:39 > 0:38:43One more go. You've been with it all the way. 97? Can't tempt you?
0:38:43 > 0:38:47£96,000 on the right hand side, then, for the first time.
0:38:47 > 0:38:5296,000 for the second if you're sure you're all done. One more chance. He doesn't want it.
0:38:52 > 0:38:56- 96 for the third and final time, if you're sure you're all done. - HAMMER BANGS
0:38:56 > 0:38:59Yours, sir, at 96.
0:38:59 > 0:39:04'At £96,000, the successful bidder was Kent-based manager Gary.
0:39:04 > 0:39:06# Take that to the bank
0:39:06 > 0:39:09'Gary works in banking so I was intrigued to know
0:39:09 > 0:39:12'why he calculates that this house would make a promising investment.'
0:39:12 > 0:39:17- Gary, congratulations.- Thank you. - Why did you want to buy this house?
0:39:17 > 0:39:23Well, it was one of five that we shortlisted. I hadn't seen any of the houses and this was the last one.
0:39:23 > 0:39:28I think I got to the stage, it was the last one of the five and I was a little bit more determined.
0:39:28 > 0:39:32How much research did you do into the prospect of buying this house?
0:39:32 > 0:39:36Hardly any. I remember before I was putting my suit on that morning,
0:39:36 > 0:39:42we looked through the internet at a few things, just checking the prices in the local area.
0:39:42 > 0:39:46We did those on a number of properties. I hadn't looked at the legal packs
0:39:46 > 0:39:49and just turned up at the auction and went for it from there.
0:39:49 > 0:39:53- So you didn't even view this property before the auction?- No.
0:39:53 > 0:39:56- Oh, my goodness! So you took a massive risk!- Massive.
0:39:56 > 0:39:59- Have you never watched our programme before?- I'm an avid watcher
0:39:59 > 0:40:02but clearly I've gone against the trend you and Martin set.
0:40:02 > 0:40:06'Yes, ignore us at your peril. Gary's broken all the rules.
0:40:06 > 0:40:10'He seems to thrive on giving himself different challenges
0:40:10 > 0:40:12'because apart from his full-time banking job,
0:40:12 > 0:40:14'he has done a few other roles, as well.'
0:40:16 > 0:40:19I was a football referee until just a few years ago,
0:40:19 > 0:40:22semi-pro level I refereed on.
0:40:22 > 0:40:24What was you most highlighted game?
0:40:24 > 0:40:29I was very fortunate to have officiated on one Premiership game
0:40:29 > 0:40:34four years ago now, and that was rather by accident, but hey, it counted.
0:40:34 > 0:40:38- It was Fulham against Aston Villa. - Fantastic.- So that was superb.
0:40:38 > 0:40:42And are you still as involved these days with refereeing?
0:40:42 > 0:40:45I've been coaching and mentoring referees until recently
0:40:45 > 0:40:50and now I'm with a club as secretary and vice chairman, so I'm heavily involved in football.
0:40:50 > 0:40:55And now property. Why have you decided to take property in, as well? You've got a lot going on.
0:40:55 > 0:40:59This isn't our first property that we've done and bought at auction
0:40:59 > 0:41:02so with that knowledge that we've built from the first one,
0:41:02 > 0:41:06it's just another opportunity and if I see an opportunity, I like to grab it and got for it.
0:41:06 > 0:41:10And hopefully it'll be for the long term.
0:41:10 > 0:41:15'Now, his goal is to build up a property portfolio to act as his pension fund.
0:41:15 > 0:41:18'But first he needs to score success with this house
0:41:18 > 0:41:21'and to do that he must tackle the layout issues.'
0:41:23 > 0:41:25Initially we wanted a property with a bathroom upstairs
0:41:25 > 0:41:30but I didn't realise the bathroom here was only accessible via the second bedroom.
0:41:30 > 0:41:34So there are some plans that may involve changing some of the layout.
0:41:34 > 0:41:40We're going to knock through and extend the kitchen into a downstairs area that's currently outside.
0:41:40 > 0:41:48Upstairs, we may flip the stairway round and we'll be putting a stud wall in
0:41:48 > 0:41:54- that will separate the two bedrooms and make a separate access into the bathroom.- Are you on a tight budget?
0:41:54 > 0:41:58- The budget can be fluid. - So how much are we talking about?
0:41:58 > 0:42:02I think the work will come to about £15,000 to £17,000.
0:42:02 > 0:42:07'That's quite a healthy budget, but Gary's got to be careful that he doesn't overspend.
0:42:07 > 0:42:09'With his £96,000 purchase price
0:42:09 > 0:42:12'and that estimated 17 grand spend,
0:42:12 > 0:42:17'he'll be pushing his outlay towards that ceiling value of £125,000.'
0:42:17 > 0:42:21What is your timescale? How long is it going to take you to get the work done?
0:42:21 > 0:42:24I'm hoping we can do this inside the next eight weeks.
0:42:24 > 0:42:29The electrician starts tomorrow. I've got great decorators called family, they start this weekend,
0:42:29 > 0:42:33they'll be stripping every room in the house. I'm not a DIY person.
0:42:33 > 0:42:39I don't do DIY. I have people around me that are quite good at DIY but that's not me.
0:42:39 > 0:42:43I'm told that I go round with a clipboard most of the time.
0:42:43 > 0:42:46- Delegating.- Indeed!- Good at telling people what to do.- Indeed.
0:42:46 > 0:42:50- And you'll be ticking it off on your clipboard as you go. - Certainly.- I love it.
0:42:50 > 0:42:55- Good luck with this. I can't wait to see what you do. Well done. - Thank you.
0:42:55 > 0:42:57# It's all in the game
0:42:57 > 0:43:01'Well, the whistle's gone and with a planned eight-week turnaround,
0:43:01 > 0:43:05'Gary and his team will need to get going to achieve the results he's aiming for.'
0:43:05 > 0:43:10Ex-referee Gary may need to call time on renovations
0:43:10 > 0:43:12if he wants to make a profit here.
0:43:12 > 0:43:17There's a ceiling price on the road and I worry he'll be over the line if he's not careful.
0:43:17 > 0:43:20He needs to play a tactical game if he wants to be man of the match
0:43:20 > 0:43:23and have this completed in two months.
0:43:23 > 0:43:27You can find out if he's successful later on in the programme.
0:43:30 > 0:43:35Making the correct decisions can seriously affect the profit you make on property.
0:43:35 > 0:43:39It's exciting seeing your ideas come to reality
0:43:39 > 0:43:42but did our buyers get it right? Let's find out.
0:43:43 > 0:43:47'Time now to return to Seaham in County Durham.
0:43:47 > 0:43:53'Earlier in the programme, Kathryn and her husband Neil paid £56,000 for this mid-terrace
0:43:53 > 0:43:56'with great views from the back across park land.
0:43:58 > 0:44:04'Kathryn's on maternity leave and Neil's an off-shore crane engineer and qualified electrician.
0:44:04 > 0:44:07'They planned to renovate the property and sell it.'
0:44:08 > 0:44:14We plan on doing the basics, new kitchen, new bathroom suite, rewire.
0:44:14 > 0:44:18- So no plans to extend, taking out walls?- No.
0:44:18 > 0:44:21No, the property's not big enough for any major changes to it.
0:44:21 > 0:44:27'Well, four months have now passed when we meet up again with Kathryn and Neil back at the property.
0:44:27 > 0:44:30'Or is it the front? They're still not sure, either.
0:44:30 > 0:44:33'There's still some work to be done on the garden,
0:44:33 > 0:44:37'but inside, the bungalow has been brought right up to date.
0:44:37 > 0:44:40'There's a smart new kitchen with a stylish finish.
0:44:41 > 0:44:43'The whole place has been rewired.
0:44:43 > 0:44:48'Dated decor, Artex ceiling and woodchip wallpaper have gone
0:44:48 > 0:44:50'in favour of a clean, modern look.
0:44:52 > 0:44:57'There are new carpets in neutral tones and the porch has been retiled.
0:44:59 > 0:45:03'The tasteful colour scheme continues in the master bedroom.
0:45:07 > 0:45:11'They've replaced the bathroom suite and retiled the walls and floor.
0:45:11 > 0:45:17'It's an impressive makeover that's given this old bungalow a fresh, contemporary feel.'
0:45:17 > 0:45:21It's been approximately three and a half months since we got the keys.
0:45:21 > 0:45:25We started off by stripping back to the bare brickwork.
0:45:25 > 0:45:30It's been rewired, alarmed. We've had it all replastered.
0:45:30 > 0:45:36When we originally got the property, the boiler was in the rear bedroom which was unacceptable,
0:45:36 > 0:45:38so we put it into the outhouse.
0:45:38 > 0:45:44And all the pipe work runs through the back wall into the outhouse so there's no pipe work on show.
0:45:44 > 0:45:50'Neil works off-shore so can concentrate on doing the renovation work during his on-shore periods.
0:45:50 > 0:45:55- 'Kathryn's been busy, as well.' - I've been here as much as I could.
0:45:55 > 0:45:59I've been more on the decorating side, the finishing touches.
0:45:59 > 0:46:04Apart from pulling out bathrooms and kitchens, I lent a hand there, and stripping off tiles,
0:46:04 > 0:46:07but the majority has been Neil, the electrics and plumbing.
0:46:07 > 0:46:12'It was all going so well and they'd almost finished when disaster struck.
0:46:12 > 0:46:16'Neil broke his wrist and had to have a special cast fitted,
0:46:16 > 0:46:19'making those leftover jobs rather tricky.
0:46:19 > 0:46:24'Before his accident, Neil had installed a new stud wall between the bathroom and kitchen
0:46:24 > 0:46:27'and brought in some help with the plastering.'
0:46:27 > 0:46:30Yeah, we basically ripped the old kitchen out,
0:46:30 > 0:46:34we had the walls all skimmed, new kitchen fitted,
0:46:34 > 0:46:40new appliances all installed into the kitchen, finished off by tiling the floors and the walls.
0:46:40 > 0:46:43'Despite the broken wrist, Neil makes it sound so easy
0:46:43 > 0:46:47'and the couple clearly worked hard to achieve the impressive finish.'
0:46:48 > 0:46:52In this room, we stripped the walls back,
0:46:52 > 0:46:57we put new skirting boards in, new doors.
0:46:57 > 0:47:00We revamped the fireplace, which was just an old wooden fireplace.
0:47:00 > 0:47:05And we put new lights in, new ceilings, repainted the whole room.
0:47:06 > 0:47:11'The interior of the house is nearly done. How much more is there left to do?'
0:47:13 > 0:47:16Neil's got a lot of work to do still at the front of the property.
0:47:16 > 0:47:21But until he gets his arm fixed, he isn't going to be touching that for a while.
0:47:21 > 0:47:26'Neil plans to lay lawn to one side of the path and decking on the other side.
0:47:26 > 0:47:30'They're on the home stretch but how much have they had to spend?'
0:47:30 > 0:47:34We originally budgeted £10,000
0:47:34 > 0:47:37and we're currently just under £7,000.
0:47:37 > 0:47:43But by the time we carry out the work in the front, we should be round about £7,500.
0:47:45 > 0:47:48'We invited two local property experts to give their opinion
0:47:48 > 0:47:53'on Neil and Kathryn's first venture into property developing.'
0:47:53 > 0:47:55There have been a great deal of changes.
0:47:55 > 0:47:57It's been finished to a very good standard.
0:47:57 > 0:48:00Higher than I would've expected, actually.
0:48:00 > 0:48:03The fixtures and fittings are very good. Very impressive.
0:48:03 > 0:48:08First impressions are very nice. There's a lot been done.
0:48:08 > 0:48:11I think it's got a bit of a wow when you walk in.
0:48:11 > 0:48:15It's ready, somebody can say, "Right, nothing to do". That's what people look for.
0:48:15 > 0:48:21'Their intention is to sell, but if they were to let it out, how much rent could the property generate?'
0:48:21 > 0:48:28I think in the current market you would be looking at £475 per calendar month.
0:48:28 > 0:48:33I think probably in the current market you would be looking between 450 to 475 per calendar month.
0:48:33 > 0:48:36Good, yeah. That's kind of what we were expecting. That's good.
0:48:36 > 0:48:40'Will they be as happy with the resale valuations?
0:48:40 > 0:48:43'Remember, they paid £56,000 for the bungalow
0:48:43 > 0:48:47'and estimate that their budget will rise to £7,500,
0:48:47 > 0:48:53'making a total of £63,500. How much is it now worth?'
0:48:54 > 0:48:57I think, in the current market, if the property was put up for sale,
0:48:57 > 0:49:01I think you would look at an asking price of around £90,000.
0:49:01 > 0:49:05I think in the current market you'd be looking at offers around £90,000.
0:49:05 > 0:49:12'Those valuations would mean a gross profit, before the usual selling expenses, of around £26,500.'
0:49:12 > 0:49:17- Excellent.- Yeah, that's good.- Really good. Again, what we were kind of hoping for, so that's good news.
0:49:17 > 0:49:21'If they successfully found a purchaser,
0:49:21 > 0:49:25'would they return to an auction and buy another home under the hammer?'
0:49:26 > 0:49:31We would certainly go through the auctions again and definitely look at doing another property up.
0:49:31 > 0:49:35I'm pleased the end result and the way we've finished off the property.
0:49:35 > 0:49:40We'll look at the auctions and see what we can come up with. Hopefully something good like this in the area.
0:49:43 > 0:49:45'In the Kent town of Rochester,
0:49:45 > 0:49:48'a two-bed terraced house went to auction.'
0:49:48 > 0:49:50- HAMMER BANGS - Yours, sir, at 96.
0:49:50 > 0:49:55'It was bought for £96,000 by Gary who, along with being an ex-referee,
0:49:55 > 0:49:58'is vice chairman of a football club.'
0:49:58 > 0:50:00# Chairman, chairman of the board
0:50:00 > 0:50:03'As well as dabbling in property development
0:50:03 > 0:50:06'and running hospitality suites at brands Hatch motor racing circuit,
0:50:06 > 0:50:11'he's a business manager for a local bank, so he's a pretty busy man.'
0:50:11 > 0:50:17# I'm a businessman, I wheel and I deal wherever I can
0:50:17 > 0:50:19# Cos I'm a chairman
0:50:19 > 0:50:24'And a man you'd expect to do thorough research before he made any investment for himself.'
0:50:24 > 0:50:30I haven't looked at the legal packs. I just turned up at the auction and went for it from there.
0:50:30 > 0:50:33- So you didn't even view this property before the auction?- No.
0:50:33 > 0:50:36- Oh, my goodness! So you took a massive risk!- Massive.
0:50:36 > 0:50:40'So Gary, someone who normally follows the exact letter of the law,
0:50:40 > 0:50:43'threw out the rule book when it came to his own property purchase.
0:50:43 > 0:50:47'But luckily for him, this house was structurally sound,
0:50:47 > 0:50:52'but in desperate need of refurbishment. The biggest headache was the upstairs layout,
0:50:52 > 0:50:56'as the main bathroom was only accessible through one of the bedrooms.
0:50:56 > 0:50:59'Luckily, Gary seemed confident he could rise to the challenge.
0:51:01 > 0:51:05'Just over two months on, has his gamble paid off?
0:51:09 > 0:51:13'The signs definitely look good on the outside with new windows and doors.
0:51:13 > 0:51:16'But how's progress inside?
0:51:20 > 0:51:24'The front reception room has been completely replastered and rewired,
0:51:24 > 0:51:26'as has the rear dining room.
0:51:26 > 0:51:29'In fact, they aren't far from the finishing stages.
0:51:29 > 0:51:32'Whereas the kitchen area still needs a bit more work.'
0:51:35 > 0:51:40So into the kitchen here. We're extending the kitchen and providing more utility space
0:51:40 > 0:51:43by creating an additional through area
0:51:43 > 0:51:47that was formerly an outside WC and a coal barn.
0:51:47 > 0:51:51We've put all the new windows and doors in, as well,
0:51:51 > 0:51:56so there's a great view of the garden from in here, which I think will be advantageous for any family.
0:51:56 > 0:51:58It will be finished to a high standard.
0:52:00 > 0:52:04'Gary's certainly utilised the space he had downstairs to the maximum.
0:52:04 > 0:52:07'The stairs previously went from left to right when you entered.
0:52:07 > 0:52:10'He's spun them around 180 degrees
0:52:10 > 0:52:13'so they can now be accessed via the rear reception room.
0:52:13 > 0:52:18- 'So he has significantly changed the upstairs layout.' - # You spin me right round
0:52:18 > 0:52:22Turning the stairs... # You spin me right round
0:52:22 > 0:52:28..enabled us to have separate access into the bathroom and created a second independent bedroom.
0:52:28 > 0:52:32# You spin me right round, baby, right round
0:52:32 > 0:52:35# Like a record, baby, right round, round, round
0:52:35 > 0:52:38'So now there's a corridor directly to the bathroom.
0:52:38 > 0:52:41'At least, there will be once there's an actual bathroom to get to.
0:52:41 > 0:52:45'There's a bedroom off that corridor. It might be a tad smaller now
0:52:45 > 0:52:48'but you can still fit a double bed in there.
0:52:48 > 0:52:51'The other bedroom remains the same size
0:52:51 > 0:52:54'but is now accessed from the other end of the room.
0:52:54 > 0:52:58'So turning the stairs around has been a neat trick for this house.
0:52:58 > 0:53:03'But for Gary, the more difficult trick was juggling all his work and leisure commitments.'
0:53:03 > 0:53:07It's very difficult in terms of time with all the things I tend to do
0:53:07 > 0:53:10at the race track, at the football club
0:53:10 > 0:53:12and my normal day-to-day job.
0:53:12 > 0:53:16So I am a very busy person but I thrive on that type of environment.
0:53:16 > 0:53:19I don't know what sitting around really is.
0:53:19 > 0:53:22'It's a good thing he does enjoy it
0:53:22 > 0:53:25'because both garden and house are far from finished.'
0:53:32 > 0:53:35We're two weeks away from finishing at this moment in time.
0:53:35 > 0:53:41A couple of real key jobs to come in now, plumbing being the main job and, of course, the kitchen.
0:53:41 > 0:53:45Apart from that, it's cosmetic finishing.
0:53:45 > 0:53:47My team of decorators is really my family.
0:53:47 > 0:53:50They really wanted to get involved in this project.
0:53:50 > 0:53:54I'm confident that my father will make an excellent job.
0:53:54 > 0:53:59'With Gary's family helping out, he's pretty close to the final whistle
0:53:59 > 0:54:02'and it couldn't come a moment too soon.'
0:54:02 > 0:54:06We had a board in the window for lets.
0:54:06 > 0:54:10We've been lucky, we've created a lot of interest. It's a fairly busy street.
0:54:10 > 0:54:13But in doing so, it has given us a little bit of choice.
0:54:13 > 0:54:18We're currently referencing a couple that would like to move in at the end of the month.
0:54:18 > 0:54:20'It's great news that he's found a tenant.
0:54:20 > 0:54:23'That gives him a deadline to aim for.
0:54:23 > 0:54:26'But did he hit his budget target of £17,000?'
0:54:28 > 0:54:32I anticipated originally it would cost around £17,500.
0:54:32 > 0:54:36It's going to end up costing a little bit more, it'll be about 23.
0:54:38 > 0:54:43'A £23,000 spend on top of Gary's £96,000 purchase price
0:54:43 > 0:54:48'will take his total outlay to about £120,000.
0:54:48 > 0:54:52'So has his impulse buy paid off? What do two local estate agents think?'
0:54:57 > 0:55:00I think what they've done with the space is really great.
0:55:00 > 0:55:03I love the fact that they've put a little extension on the rear
0:55:03 > 0:55:09and that they've moved the stairs to allow the two bedrooms to have a separate bathroom.
0:55:09 > 0:55:12I personally like this house
0:55:12 > 0:55:15and I like its location and I like what he's done to it.
0:55:15 > 0:55:19And I can see what once he finishes it, it'd going to be really nice.
0:55:19 > 0:55:22'Gary bought this as a long-term investment.
0:55:22 > 0:55:25'But with £120,000 already spent here,
0:55:25 > 0:55:27'how would it fare if he sold it on?'
0:55:27 > 0:55:31If we were to put this property on the market in the current time,
0:55:31 > 0:55:36I'd like to say to him that we'd be putting it on and testing it at £130,000.
0:55:36 > 0:55:42Once finished and completed, we would look to achieve approximately £130,000.
0:55:42 > 0:55:46I'd be pleasantly surprised, in the current market, if we were to achieve 130.
0:55:46 > 0:55:50'So not a huge profit in the resale market to be had at present
0:55:50 > 0:55:53'but for Gary, rental is the name of the game here.'
0:55:55 > 0:56:00If we put this on the market for rental, I'd be looking at renting it at £650 per calendar month.
0:56:00 > 0:56:07I would put this property on the rental market for approximately £650 per calendar month.
0:56:07 > 0:56:09650 is on the money, I think.
0:56:09 > 0:56:15And that's what I've got the house rented out for from next month, so on the money.
0:56:15 > 0:56:19'£650 a month makes £7,800 a year,
0:56:19 > 0:56:21'a yield of 6.5 percent.
0:56:21 > 0:56:24'As Gary would know, that's better than most bank rates.
0:56:24 > 0:56:27'So it appears his gamble has paid off.'
0:56:27 > 0:56:32# What do you say to taking chances
0:56:32 > 0:56:38# What do you say to jumping off the edge?
0:56:38 > 0:56:42It was a risk. I'm not really a risk taker to that degree.
0:56:42 > 0:56:45But I've done it once. I would do it again.
0:56:45 > 0:56:49You know, you take a chance on all of these things
0:56:49 > 0:56:52and if you don't take the opportunity, you'll never know the outcome.
0:56:55 > 0:56:58We hope you've enjoyed our insight into the property world of auctions.
0:56:58 > 0:57:03- Join us next time for more Homes Under The Hammer. - See you then.- Goodbye.
0:57:04 > 0:57:08Subtitles by Red Bee Media Ltd
0:57:08 > 0:57:12E-mail subtitling@bbc.co.uk
0:57:12 > 0:57:12.