0:00:02 > 0:00:05Hello. Do you think you could hack it in the world of property?
0:00:05 > 0:00:08If you get it right, it can be a great way to earn money.
0:00:08 > 0:00:12And one way to be best placed is to buy your home under the hammer.
0:00:37 > 0:00:43There are tense moments in the auction room. Who will make the right bid at the right price?
0:00:43 > 0:00:47Yes. Properties can change people's fortunes for better or worse.
0:00:47 > 0:00:50Here's what inspired people on today's show.
0:00:51 > 0:00:56'This property in Devon looks cracking, but is it all it's cracked up to be?'
0:00:57 > 0:01:00So what have we got? That's not good.
0:01:01 > 0:01:05'I'm seeking inspiration when it comes to the development potential
0:01:05 > 0:01:08'of this auction lot in Kent.'
0:01:08 > 0:01:10Any ideas what to do with this place?
0:01:11 > 0:01:16'And I visit this darling little flat in Darlington.'
0:01:16 > 0:01:21I have to say it - there really is nothing wrong with this place!
0:01:22 > 0:01:25'All these properties have been sold at auction.
0:01:25 > 0:01:30- 'We'll find out who bought them and what they paid when they went under the hammer.'- Sold!
0:01:34 > 0:01:38# Look at the sun shining
0:01:38 > 0:01:40# Down on our love... #
0:01:40 > 0:01:47I'm in Exmouth in Devon, which, with its glorious golden sand, is a popular tourist destination.
0:01:47 > 0:01:52There's a direct rail link from London to Exmouth's lively town centre.
0:01:52 > 0:01:56All in all, there's a lot to like here.
0:01:56 > 0:02:00Well, the property I'm here to see is in a nice residential area,
0:02:00 > 0:02:05just a short walk up from the town centre if you don't mind the slight hill.
0:02:05 > 0:02:11And this is it. Guide price was 95,000 quid. Three-bed semi. Let's take a look inside.
0:02:11 > 0:02:15On first impressions, this is a lovely family home.
0:02:15 > 0:02:21Paid up for around the guide price of 95 grand and you may have bagged a bargain.
0:02:21 > 0:02:27# I'd call that a bargain The best I ever had... #
0:02:27 > 0:02:29So what have we got?
0:02:30 > 0:02:32Right.
0:02:32 > 0:02:37That's not good. A lot of people, you know, walk through that front door,
0:02:37 > 0:02:41see that huge great crack here and walk straight out again.
0:02:41 > 0:02:47That may not be a bad idea. I need to find out more about the property before I make a decision.
0:02:47 > 0:02:51What have we got apart from some issues which need looking at?
0:02:51 > 0:02:54A front living room with damp in that bay window.
0:02:54 > 0:02:59Through to a rear, well, I don't know, rear sitting room, I suppose?
0:02:59 > 0:03:03Lots of storage space. Bit of a larder there. That's quite nice.
0:03:03 > 0:03:05More storage space here.
0:03:05 > 0:03:06Oh!
0:03:06 > 0:03:09Right. Not actually storage space.
0:03:09 > 0:03:11That's your kitchen.
0:03:11 > 0:03:15Not looking too good so far, is it?
0:03:16 > 0:03:20The kitchen is pint-sized and pokey.
0:03:20 > 0:03:25I'd open it up into the rear sitting room to create a spacious kitchen/diner.
0:03:25 > 0:03:32However, the real cause for concern is the damp in the front sitting room and that crack in the hall.
0:03:33 > 0:03:36# Crack me up
0:03:36 > 0:03:38# You crack me up... #
0:03:38 > 0:03:41Let's take a look up top.
0:03:42 > 0:03:46So, I wonder if there are any more surprises in store upstairs?
0:03:46 > 0:03:51Ah... Unusual little light fitting on the landing there.
0:03:51 > 0:03:54How odd to have a light on the banister like that.
0:03:54 > 0:03:59Anyway, three bedrooms, all reasonable size. One there. Big one at the front with the bay window.
0:03:59 > 0:04:05Clearly, total refurbishment required. Your bathroom is upstairs which is good news.
0:04:05 > 0:04:10Then into the rear bedroom and you can't get away from the overriding thing about this property.
0:04:10 > 0:04:13And that is that there is a serious issue.
0:04:13 > 0:04:17Look at this. That is a crack and a half. There's a pound coin.
0:04:17 > 0:04:21Look how big it is. Not good at all.
0:04:21 > 0:04:26I tell you what, it's going to cost you more than a quid to put that right.
0:04:26 > 0:04:30More than a pretty penny. What we're talking here is serious subsidence.
0:04:30 > 0:04:34This whole corner of the property has sunk down for whatever reason.
0:04:34 > 0:04:38My guess would be drains. To sort it out, it'll need underpinning.
0:04:38 > 0:04:42For a start, it's not going to be mortgageable in the current state.
0:04:42 > 0:04:46All in all, we're looking at a property that's got serious problems.
0:04:46 > 0:04:50# It's an SOS, it's an SOS
0:04:50 > 0:04:52# Oh, yes, oh, yes
0:04:52 > 0:04:54# It's an SOS... #
0:04:54 > 0:04:58Well, at the rear corner of the property, there is a drain.
0:04:58 > 0:05:02And I don't think it's coincidental that that's there
0:05:02 > 0:05:06and it's this corner of the property that is giving all the problems.
0:05:06 > 0:05:10Probably that drain has broken down and water is just seeping into the ground,
0:05:10 > 0:05:14meaning that the building itself is sinking. And look at these bricks.
0:05:14 > 0:05:17It's not just inside that there are problems.
0:05:17 > 0:05:23The exterior brickwork is cracking as well here, up there, above the window.
0:05:23 > 0:05:29What will you have to do to sort it out? Dig out, underpin - that means replacing the foundations.
0:05:29 > 0:05:31Sort out whatever the problem is.
0:05:31 > 0:05:35And you know what? All of that is an expensive job.
0:05:35 > 0:05:39So let's try and cheer ourselves up - the garden of the property.
0:05:39 > 0:05:44Very nice. It's very long. And apart from needing a bit of sorting out, it's a good space,
0:05:44 > 0:05:49which is just as well because if I had bought this place, I might have to live out here.
0:05:49 > 0:05:53# When tonight you'll be sleeping under the stars... #
0:05:53 > 0:05:59But before I pitch my tent and start singing songs around the camp fire,
0:05:59 > 0:06:04let's ask a local estate agent for his opinion on this cracking property.
0:06:07 > 0:06:11The guide price for this three-bed semi was 95,000.
0:06:14 > 0:06:17It's in need of some love and attention.
0:06:17 > 0:06:21There is some subsidence, so it needs some work doing to it
0:06:21 > 0:06:24to make it an attractive family home.
0:06:25 > 0:06:31The kitchen is obviously very, very small, not adequate for modern-day living.
0:06:31 > 0:06:33The house offers quite a few opportunities.
0:06:33 > 0:06:37The main one would be to put a single storey extension on the back
0:06:37 > 0:06:41and make the kitchen there and extend the dining room slightly.
0:06:41 > 0:06:45Once renovated, what could it achieve on the rental market?
0:06:45 > 0:06:47When the property's renovated,
0:06:47 > 0:06:53the property will achieve a rental value of £850 per calendar month.
0:06:53 > 0:06:56And the sell-on value?
0:06:57 > 0:07:00When the property is renovated,
0:07:00 > 0:07:04it'll have a resale value of £175,000.
0:07:06 > 0:07:11So, a classic case of why you have to go and visit a property before buying it at auction.
0:07:11 > 0:07:16You could see a picture in the catalogue and think, "Fantastic."
0:07:16 > 0:07:21It's only when you get here that you discover the problems. They're not insurmountable.
0:07:21 > 0:07:26If you get it for the right price, you can allow money for the remedial works
0:07:26 > 0:07:31and still make money out of it. Let's see who fancied taking it on when it went under the hammer.
0:07:32 > 0:07:35Can I ask for opening bids of 90 on this one?
0:07:35 > 0:07:38Would anybody like to open the bids here at 90?
0:07:38 > 0:07:40Anybody come in and bid 85?
0:07:40 > 0:07:4480,000? Do I have anybody bidding...
0:07:44 > 0:07:47I have. Thank you. 80,000 I have, sat just in front of me.
0:07:47 > 0:07:52Looking for 85,000. 85 I have, just a little bit further back. Looking for 90.
0:07:52 > 0:07:57- 87.- I'll take 87 at this point, madam. 87. Looking still for 90.
0:07:57 > 0:08:01At 90. Thank you very much. Do I have any other bidders? 92.
0:08:01 > 0:08:05I have 92. Looking at 94. 92. I have 93 sat just on my right.
0:08:05 > 0:08:10'This auction lot was keenly contested with lots of interested parties.
0:08:10 > 0:08:16'We pick it up again at £117,500.'
0:08:16 > 0:08:20Lady's popped her hand up again. 117 and a half. 118. Thank you, sir.
0:08:20 > 0:08:25118 with the gentleman still sat in the middle of the room. 118 and a half from the lady.
0:08:25 > 0:08:27119 from the gentleman.
0:08:27 > 0:08:29120. Thank you, madam. 120. 121, sir?
0:08:29 > 0:08:34121. Thank you very much. At 121. I'm looking for 122.
0:08:34 > 0:08:37Going once at 121.
0:08:38 > 0:08:41Going twice at 121.
0:08:41 > 0:08:45Third and final time. Just looking at all the bidders.
0:08:45 > 0:08:48Yours, sir, at 121. Thank you, sir.
0:08:48 > 0:08:55'The successful bid of 121,000 was made by Cameron and his wife Karen.
0:08:55 > 0:08:58'Karen runs a holiday let business
0:08:58 > 0:09:02'while Cameron's a builder by trade and a keen rugby player.
0:09:02 > 0:09:06'So let's find out how he intends to tackle this house.'
0:09:06 > 0:09:09Cameron, Karen, congratulations.
0:09:09 > 0:09:13- Thank you.- Well done. Bought a property with a...few problems.
0:09:13 > 0:09:15Somewhat.
0:09:15 > 0:09:19Obviously not fazed by it enough not to buy it?
0:09:19 > 0:09:22- No, it's what we do, so... - Tell me more.
0:09:22 > 0:09:26- We buy cheap properties and do them up and sell them on.- Right.
0:09:26 > 0:09:32- Simple as that.- So the subsidence then would probably have put quite a few people off and is quite scary.
0:09:32 > 0:09:37We actually saw the report at the estate agents and I read it.
0:09:37 > 0:09:42And it said that it was caused by broken drains, so...it seems quite an easy one to fix.
0:09:42 > 0:09:46Well, that's the cause, but the actual result is that...
0:09:46 > 0:09:50There's two ways of looking at subsidence. You either, in section,
0:09:50 > 0:09:54actually re-concrete at the foundations or you take it away.
0:09:54 > 0:09:58- So we're going to take the back of the building away...- Ah.- Extend it.
0:09:58 > 0:10:02And then that's actually done away with the subsidence in the same job.
0:10:03 > 0:10:06'By removing the rear of the ground floor
0:10:06 > 0:10:12'and building an extension which will require new foundations, or footings as they're also known,
0:10:12 > 0:10:17'Cameron will fix the subsidence problem and increase the floor space of the house,
0:10:17 > 0:10:20'all in one very smart move. I'm impressed.'
0:10:20 > 0:10:24That makes sense because what's the point of re-building it as it is
0:10:24 > 0:10:28- when with extra money you increase the property?- It'll cost less.
0:10:28 > 0:10:31Talk me through the numbers on that.
0:10:31 > 0:10:38- To build an extension would cost me about 5,000.- Five?- And to underpin it is roughly £1,000 a metre.
0:10:38 > 0:10:41And there's about seven metres to do.
0:10:41 > 0:10:46- So how are you going to build an extension with five grand? - I do 90% of the work myself.
0:10:46 > 0:10:52- Right! Including bricklaying? - Including the bricklaying, plastering, carpentry.- Wow!
0:10:52 > 0:10:58Electrics, central heating. I used to be a heating engineer and an electrician. And plastering as well.
0:10:58 > 0:11:05- So you really are a jack of all trades?- Yes.- And a master of lots? - I was going to say a master of none.
0:11:05 > 0:11:07# I'm the jack of all trades
0:11:07 > 0:11:10# You know that makes me the boss
0:11:10 > 0:11:12# You're gonna get your money's worth
0:11:12 > 0:11:15# No matter what it costs Hey, hey, hey... #
0:11:15 > 0:11:21'Cameron and Karen have developed over 20 properties in the Exmouth area in the last 15 years.
0:11:21 > 0:11:28'While Cameron deals with the building work, Karen's in charge of the cosmetic appearance.'
0:11:28 > 0:11:33- Could you tell me more about what you do, Karen? - I do more of the pretty bits.
0:11:33 > 0:11:37I do decorating, tiling, coving.
0:11:37 > 0:11:40Um..."gofering".
0:11:40 > 0:11:44- Right. You're actually hands-on doing it all?- Yes.- Oh, great fun.
0:11:44 > 0:11:50Yes. And I pick the colours, bathrooms, kitchens, because I've got a bit more taste.
0:11:50 > 0:11:51Right!
0:11:51 > 0:11:53LAUGHTER
0:11:53 > 0:11:59'It's always ideal to have a mix of talent. And this couple certainly seem to be a great team.
0:11:59 > 0:12:02'But do their big plans come with a big timeframe?'
0:12:03 > 0:12:09- What's the timescale for doing the work? - We've allowed ourselves 14 weeks,
0:12:09 > 0:12:13but if we can do it quicker, then, you know, hey-ho.
0:12:13 > 0:12:15And the budget for the whole amount?
0:12:15 > 0:12:17We've got a budget of 15,000.
0:12:17 > 0:12:22- Right. Including building the extension?- Including building the extension.- Well, wow!
0:12:22 > 0:12:26- Good luck. We look forward to seeing how you get on.- Thank you.
0:12:26 > 0:12:29- Congratulations.- Thank you. - Thank you.
0:12:30 > 0:12:35Well, Karen and Cameron not at all fazed by the problems of this property.
0:12:35 > 0:12:40And I think they've come up with a really good solution for sorting it out.
0:12:40 > 0:12:45Still, that £15,000 budget to do all that work - can they really stick to that?
0:12:45 > 0:12:48Well, you can find out later in the show.
0:12:53 > 0:12:59I'm in Hollingbourne and this is actually the busy A20 near Maidstone in the Kent countryside.
0:12:59 > 0:13:03And I'm here today to see a piece of land with a solitary building on it.
0:13:03 > 0:13:07So nothing unusual about that, you might think. And you'd be right.
0:13:07 > 0:13:11Except the building is just 5 metres long by 2.5 metres wide.
0:13:11 > 0:13:13So not huge by any standards.
0:13:13 > 0:13:16So why buy it?
0:13:16 > 0:13:21Well, that building also sits on just under a quarter of an acre of land.
0:13:21 > 0:13:26And as Mark Twain once said, "Buy land. They're not making it any more."
0:13:27 > 0:13:31I've seen many peculiar properties on Homes Under The Hammer
0:13:31 > 0:13:36and I think this will be another for the curious and quirky file.
0:13:36 > 0:13:40The building I've come to see is a former telephone repeater exchange.
0:13:40 > 0:13:43I said, "Telephone repeater exchange." Ha-ha! Sorry.
0:13:43 > 0:13:50Well, it is detached, you can see. It's freehold. And it was guided at just £15,000 to £20,000.
0:13:50 > 0:13:55Well, I've no words of wisdom to quote on telephone repeater stations from Mark Twain,
0:13:55 > 0:13:58but I know what Shania Twain would say...
0:13:58 > 0:14:01# That don't impress me much
0:14:02 > 0:14:04# Oh, no... #
0:14:04 > 0:14:08So, this is what the inside of a repeater station looks like.
0:14:08 > 0:14:13Not hugely exciting. But what we do have in terms of services
0:14:13 > 0:14:19is electricity. Now I guess this trench down here would have housed the telephone cabling.
0:14:19 > 0:14:21But there's no water, there's no gas.
0:14:21 > 0:14:23Just one little window.
0:14:23 > 0:14:27And not a lot of space to work with.
0:14:27 > 0:14:30Any ideas what you could do with this place?
0:14:30 > 0:14:34And the answer is probably knock it down.
0:14:34 > 0:14:38The attraction of this auction lot is the land, not the building.
0:14:38 > 0:14:41But the low guide price has set my alarm bells ringing.
0:14:41 > 0:14:45So I'm not going to get hung up on this telephone repeater station.
0:14:45 > 0:14:48# Every little thing that you say or do
0:14:48 > 0:14:53# I'm hung up, I'm hung up on you... #
0:14:54 > 0:15:00Now, according to the council, getting planning for building a dwelling here is very unlikely
0:15:00 > 0:15:04because the plot is well outside any settlement boundaries.
0:15:04 > 0:15:07And that means villages, towns, shops where people live and work.
0:15:07 > 0:15:13So the principle of building a house here is against local and national policy.
0:15:13 > 0:15:18So in most circumstances they will not allow new buildings outside these boundaries.
0:15:18 > 0:15:21In these situations, talk to the planners
0:15:21 > 0:15:24before you build your hopes up about building a house here.
0:15:24 > 0:15:29The prospects of building on this plot might not look great at the moment,
0:15:29 > 0:15:32but that could change in the future.
0:15:32 > 0:15:39Broadly speaking, the price of land has gone up over the past ten years despite the recession,
0:15:39 > 0:15:42so at least you're less likely to lose money here.
0:15:45 > 0:15:48Time to find out what a local estate agent thinks
0:15:48 > 0:15:51about this unusual auction lot,
0:15:51 > 0:15:55which had a guide price of 15,000 to 20,000.
0:15:55 > 0:15:58This plot is a really tight plot.
0:15:58 > 0:16:01And to be honest, with the access on to the A20,
0:16:01 > 0:16:05I feel it's going to be impossible to get any planning on it.
0:16:05 > 0:16:12I think the problem is it's minute. It would have to be extended and I don't know how you'd extend it.
0:16:12 > 0:16:17To put water or any other main facilities in would cost an absolute fortune.
0:16:17 > 0:16:22It doesn't have any particular use, so you can't apply for change of use.
0:16:22 > 0:16:28So you would have to put in some sort of proposal to the council to see what they might accept.
0:16:29 > 0:16:33So it's not looking good in the estate agent's opinion.
0:16:33 > 0:16:38But planning consent isn't completely ruled out. So you could see that as a glimmer of hope,
0:16:38 > 0:16:42rather than a hopeless cause, depending on your outlook.
0:16:42 > 0:16:48And you know me - even on a dreary day like today, I always like to look on the sunny side.
0:16:48 > 0:16:51Yes, it's quaint. Yes, it's unusual.
0:16:51 > 0:16:57And a potential money-spinner should you get permission to build on the plot of land here.
0:16:57 > 0:17:03But who thought it was worth a punt at that guide price, I wonder? Let's go to auction and find out.
0:17:04 > 0:17:11Guided at 15 to 20. What may I say? 15? 15 I have. 15. 16. 17.
0:17:11 > 0:17:1318. 19. 20.
0:17:13 > 0:17:1620 I have with Will. At £20,000 is bid.
0:17:16 > 0:17:19At £20,000 I have. 22 is bid.
0:17:19 > 0:17:22And 23? 23.
0:17:22 > 0:17:2425. 28? No?
0:17:24 > 0:17:3025,000 I have in the front row. At £25,000 is bid. 28 for anyone else?
0:17:30 > 0:17:34At 25,000 then it's being sold for the first time.
0:17:34 > 0:17:39At 25,000. Being sold for the second time at 25,000.
0:17:39 > 0:17:4126 if it helps?
0:17:41 > 0:17:44Being sold for the third and final time.
0:17:44 > 0:17:47At 25,000, lady in the front. Are you all done?
0:17:47 > 0:17:49'It might have its issues,
0:17:49 > 0:17:54'but the interest in this lot pushed it 5,000 over the upper guide price.
0:17:54 > 0:18:00'The successful bid of 25,000 came from Anna and her son Arkan.
0:18:00 > 0:18:04'Anna's an eye surgeon and Arkan's a bricklayer.
0:18:04 > 0:18:07'Anna has appeared on Homes Under The Hammer before
0:18:07 > 0:18:12'when she bought and renovated this rundown and dilapidated house in Maidstone.
0:18:12 > 0:18:16'I went to meet her and Arkan at their new purchase.'
0:18:17 > 0:18:20Arkan and Anna, congratulations!
0:18:20 > 0:18:24- Thank you.- Thank you.- Anna, we've actually met before, haven't we?
0:18:24 > 0:18:27Yes, five years ago, I bought a house in Maidstone.
0:18:27 > 0:18:34- And you appeared on Homes Under The Hammer, so you're obviously still buying properties at auctions?- Yes.
0:18:34 > 0:18:39- So who have you brought along with you today?- This time, with my son, Arkan.
0:18:39 > 0:18:42And he loves this small, little house.
0:18:42 > 0:18:45And he's imagining he can live in it, so...
0:18:45 > 0:18:50- You want to live in this? - Well, ideally, it would be good to get planning permission
0:18:50 > 0:18:54to build, you know...to extend the actual existing property.
0:18:54 > 0:19:00You know, that would be the... you know, the ideal thing, really.
0:19:00 > 0:19:05- And what would it look like? - It would look like a tiny little cottage.
0:19:05 > 0:19:09I'll build a chimney on the side. I think it would be brilliant, yeah.
0:19:09 > 0:19:14What are the chances of you being able to convert this into residential?
0:19:14 > 0:19:19- Very slim, probably.- But would you like to do that?- Yeah, I'd love to. You've got to try.
0:19:19 > 0:19:23- Absolutely.- I'll probably get refused again and again,
0:19:23 > 0:19:27but, you know, we'll keep trying, you know.
0:19:28 > 0:19:35'I do admire their ambition and enthusiasm, but it takes more than passion to get planning permission.'
0:19:35 > 0:19:41- Tell me, Anna, did you decide to go to auction to buy this telephone repeater station?- No.
0:19:41 > 0:19:45We went to buy some other land at the end of the catalogue.
0:19:45 > 0:19:51And I said, "If we didn't buy the other land, we'll waste all our time, so let's buy something else."
0:19:51 > 0:19:56'Anna has bought three other auction properties before, but they didn't all make a profit.
0:19:56 > 0:20:02'On this impulse buy, they broke the golden rule by not looking at the legal pack.
0:20:02 > 0:20:05'They were also unable to heed the auction catalogue advice
0:20:05 > 0:20:09'to make enquiries with the planners before bidding.'
0:20:09 > 0:20:14- Arkan, do you think she's got a safe investment with her money?- Well, it's land at the end of the day.
0:20:14 > 0:20:19And whatever happens, land... Nothing can go wrong with land, you know.
0:20:19 > 0:20:26So whether we develop it or not, eventually it's going to go up in value. It can't, you know, decrease.
0:20:26 > 0:20:30'Arkan could be right. Their plans may sound wishful thinking,
0:20:30 > 0:20:34'but in the long run if they can't get planning permission,
0:20:34 > 0:20:39'Anna should get her money back if she decides to re-sell.'
0:20:39 > 0:20:45So, guys, let's do some maths here. You've spent £25,000 so far on buying this.
0:20:45 > 0:20:49How much more money have you got to sink into this project?
0:20:49 > 0:20:54To build a small cottage or continuation to this to make a small cottage, a two-bedroom or something,
0:20:54 > 0:20:58- maybe we'll need about 10,000. - 10,000?- Yeah.- 10,000?
0:20:58 > 0:21:02Yeah. Or more. I think 10,000 is enough.
0:21:02 > 0:21:0410,000 to build a small cottage?
0:21:04 > 0:21:08Yes. Small, small, you know. Between 10 and 15, but not more.
0:21:08 > 0:21:13So are you in any hurry at all to try and get something out of this
0:21:13 > 0:21:18- in the immediate future? Or are you prepared to hang on to it?- I think we're prepared to hang on to it.
0:21:18 > 0:21:25It's an investment, you know. If we keep getting turned down with our applications for planning permission,
0:21:25 > 0:21:30I think we've got time to... you know, to sit on it.
0:21:30 > 0:21:35- So really, if I were to say to you, "What is going to happen next," you just don't know, do you?- Yeah.
0:21:35 > 0:21:39I thought maybe if we apply for planning permission and we got it,
0:21:39 > 0:21:45then say, "OK, we don't want to do anything." We can sell it with the planning permission,
0:21:45 > 0:21:49- which makes a bit of profit, doesn't it?- That would be a fantastic idea.
0:21:49 > 0:21:54So you don't have to carry on doing all the work, but I think Arkan would be disappointed
0:21:54 > 0:22:01- because he wanted it to be his home here, especially with this little... - A place for a bed down there(!)
0:22:01 > 0:22:07Guys, I'm really excited to find out what the future holds for this little telephone repeater station!
0:22:07 > 0:22:14- It's been really nice to see you both again.- Thank you very much. - Thank you.- Thank you.
0:22:14 > 0:22:21Arkan and Anna have taken a risk on this one. Anna has lost money on investments in the past.
0:22:21 > 0:22:25Let's hope she doesn't repeat the same mistakes again.
0:22:25 > 0:22:31Stay on the line and find out what this repeater station is transformed into. I can't wait!
0:22:32 > 0:22:36'Coming up - this one-bedroom flat in Darlington seems to have it all.
0:22:36 > 0:22:40'It's in a great area and in good condition.'
0:22:40 > 0:22:41So I'm liking this place a lot.
0:22:42 > 0:22:48'In Kent, Anna and son Arkan are already planning their next project.'
0:22:48 > 0:22:52- Next time you'll be the boss and I'll be the assistant.- Oh!
0:22:53 > 0:22:59'But first, what do the experts think of Cameron and Karen's handiwork?'
0:22:59 > 0:23:02The kitchen/breakfast room is the main selling point.
0:23:05 > 0:23:09# Let the sun shine Let the sun shine, baby... #
0:23:09 > 0:23:16'Let's return to the sunny shores of Exmouth in Devon where I viewed this three-bed semi-detached.
0:23:18 > 0:23:20'From the outside, it looked cracking.
0:23:20 > 0:23:23'But on the inside, it was literally cracking up.
0:23:25 > 0:23:30'There was serious subsidence caused by a leaking underground drain,
0:23:30 > 0:23:33'washing away the footings to the rear of the house.
0:23:33 > 0:23:36'But what some may have seen as major structural problems
0:23:36 > 0:23:42'was little more than a minor inconvenience for builder Cameron and his wife Karen.
0:23:42 > 0:23:46'They purchased the property at auction for 121,000.'
0:23:46 > 0:23:50- Bought the property with a...few problems.- Somewhat.
0:23:50 > 0:23:55- Obviously not fazed by it enough not to buy it? - No, it's what we do, so...
0:23:55 > 0:24:01- Tell me more.- We buy cheap properties and do them up and sell them on.- Right.- Simple as that.
0:24:01 > 0:24:08'We've returned four months later to see if it really was as simple as Cameron expected
0:24:08 > 0:24:11'and whether they'd cracked those subsidence problems.
0:24:12 > 0:24:18'The exterior is looking spick-and-span. Let's take a peek inside.'
0:24:18 > 0:24:20# Crack it
0:24:21 > 0:24:24# We will crack it... #
0:24:24 > 0:24:29It's looking good. And at the back where the damage was done?
0:24:29 > 0:24:31# We will crack it... #
0:24:32 > 0:24:37A crack-free zone. Was it all as simple as Cameron predicted?
0:24:37 > 0:24:41The main problem I had was a broken drain.
0:24:41 > 0:24:46When we removed the existing footings, we found they'd been washed away over a period of years.
0:24:46 > 0:24:52So I dug down till I got to the rock, put in four-and-a-half tonnes of concrete, repaired the drain
0:24:52 > 0:24:53and re-built the brickwork.
0:24:54 > 0:24:58Well, it's easy-peasy if you know how.
0:24:58 > 0:25:02In the building game, put your mind to it and you can do it.
0:25:02 > 0:25:07On the downside, Cameron was unable to build the rear extension he'd planned
0:25:07 > 0:25:11as the water board held rights of access to this sewer pipe.
0:25:11 > 0:25:18But on the upside, that allowed Cameron and his wife Karen to splash the cash on the interior.
0:25:18 > 0:25:24To the rear of the property was a dining room with a teeny-weeny kitchen running off it.
0:25:24 > 0:25:30Now it's a roomy kitchen/diner, which I think is money well spent.
0:25:31 > 0:25:36There was a small scullery and a walk-in pantry which we took out.
0:25:36 > 0:25:41Supported the ceiling from the wall we removed. Re-plastered, re-wired.
0:25:41 > 0:25:46And then fitted a good quality kitchen with integrated appliances and a range cooker.
0:25:46 > 0:25:53This high-spec, high-style finish will be really appreciated by potential purchasers.
0:25:53 > 0:26:01The kitchen is the heart of a family home and the open fire will be a cosy feature for this room.
0:26:01 > 0:26:04And Cameron has added a cloakroom with a WC.
0:26:04 > 0:26:10The sitting room has the same bright, fresh, family-friendly appeal.
0:26:11 > 0:26:15He has removed the chimney breast to create more living space
0:26:15 > 0:26:20and has vanquished all signs of the damp which looked and smelled bad.
0:26:20 > 0:26:23Cameron and Karen work hand-in-hand on their renovations.
0:26:23 > 0:26:27And whilst Cameron gets down and dirty with the hard labour,
0:26:27 > 0:26:31Karen ensures the cosmetic appearance makes an impact.
0:26:31 > 0:26:35My wife does quite a bit of interior designing on all the work we do.
0:26:35 > 0:26:41She chose the colour scheme, the tiles, wallpaper, even down to the carpets and the vinyl floor.
0:26:41 > 0:26:46But we always try and take on a property as if we'd like to live there ourselves.
0:26:46 > 0:26:50And we just feel that the look has to be right
0:26:50 > 0:26:55and whoever came in to look at it to buy it would say, "Wow, this is just what we want."
0:26:55 > 0:27:01The instant impact of the quality finish and modern interior design continues in the master bedroom.
0:27:01 > 0:27:05Karen's choice of colour palette and feature wallpaper
0:27:05 > 0:27:09brings warmth and personality to the house.
0:27:09 > 0:27:15The back bedroom, once riddled with cracks snaking across the walls and ceiling,
0:27:15 > 0:27:17now looks as good as new.
0:27:18 > 0:27:24All the plaster was removed and then we dry-lined it and skimmed it.
0:27:24 > 0:27:29Cameron's matter-of-fact, can-do attitude makes it all sound so easy.
0:27:29 > 0:27:34We've developed quite a few properties. This has been comparatively straightforward.
0:27:34 > 0:27:36It was a bit of a walk in the park.
0:27:36 > 0:27:41And in the bathroom, he's made the best use of a tight space.
0:27:42 > 0:27:48The bathroom didn't work, so we decided to put the bath in the opposite direction,
0:27:48 > 0:27:51reduced the door size to allow access,
0:27:51 > 0:27:56and then put in a shower, towel rail and full white suite, top to bottom.
0:27:56 > 0:28:01He's managed to finish the work within his three-and-a-half months' schedule,
0:28:01 > 0:28:05but did he keep to his £15,000 budget?
0:28:07 > 0:28:11The budget, basically, stayed as it was. We spent 14,400.
0:28:11 > 0:28:15The extension, we didn't build, which would've cost us more.
0:28:15 > 0:28:21But we decided to put a higher spec on the inside of the house, so the money was actually balanced out.
0:28:22 > 0:28:27That means the couple's total outlay here is 135,400,
0:28:27 > 0:28:30so within schedule and under budget.
0:28:32 > 0:28:35What is the secret of their success?
0:28:37 > 0:28:43I look at every property on the basis that I can do the majority of the work myself.
0:28:43 > 0:28:48I am quite competent in most trades. And we constructively look at the property,
0:28:48 > 0:28:52take it apart and put it back together again.
0:28:52 > 0:28:56And we try and increase the value and to increase the wow factor,
0:28:56 > 0:28:59so as when we sell it, we sell it quickly.
0:28:59 > 0:29:03In fact, the property has already been snapped up.
0:29:03 > 0:29:08We completed the job. We've had it valued. We put it on the market.
0:29:08 > 0:29:13And we sold it within 24 hours. And we had three buyers at the asking price.
0:29:14 > 0:29:17Now, that's what I call a wow factor.
0:29:17 > 0:29:21Let's find out how much two local property experts
0:29:21 > 0:29:24think the property could achieve
0:29:24 > 0:29:28and how much Cameron and Karen actually sold it for.
0:29:28 > 0:29:30My first impressions of the property
0:29:30 > 0:29:33is that they've done an excellent job.
0:29:33 > 0:29:36They've put wallpaper up and kept colours nice.
0:29:36 > 0:29:41- And the kitchen and bathrooms are lovely.- The property's been been done to a high standard.
0:29:41 > 0:29:45The kitchen/breakfast room is the main selling point.
0:29:45 > 0:29:48The rest has been done to a lovely standard.
0:29:49 > 0:29:54They've put in a downstairs cloakroom, which with a family home is an excellent idea
0:29:54 > 0:29:56and a really good selling point.
0:29:56 > 0:30:01The decoration has been done to a lovely standard, retaining some original features as well
0:30:01 > 0:30:04with picture rails and high skirting boards,
0:30:04 > 0:30:08but also wallpaper in some rooms and some lovely finishing touches.
0:30:08 > 0:30:13These experts really like all the couple have achieved with this property.
0:30:13 > 0:30:19So bearing in mind their total spend of 135,400, what could they sell for?
0:30:20 > 0:30:27If I were to market this property, I would put it on the market in the region of £170,000.
0:30:27 > 0:30:30If the property was to go on the open market,
0:30:30 > 0:30:34I'd expect to see it with an asking price in the region of £175,000.
0:30:35 > 0:30:40Of course, Cameron has already accepted an offer he received
0:30:40 > 0:30:44within 24 hours of putting it on the market, but for how much?
0:30:44 > 0:30:47We had the two agents come out on the Tuesday.
0:30:47 > 0:30:53We had two viewings for the following day. By the end of the following day, we had five viewings
0:30:53 > 0:30:57and three offers of the asking price of 170. I'm over the moon with that.
0:30:57 > 0:31:01Cameron's a perfect example for any would-be property developer.
0:31:01 > 0:31:05He's really got this business cracked.
0:31:05 > 0:31:08# Crack it... #
0:31:11 > 0:31:13I'm in Darlington, County Durham.
0:31:14 > 0:31:20The architecture here pays tribute to its rich Quaker heritage
0:31:20 > 0:31:26with a statue of the first Quaker MP, Joseph Pease, taking pride of place in the town centre.
0:31:27 > 0:31:32Well, the property I'm here to see is in the popular west end part of Darlington.
0:31:32 > 0:31:37And walking along these pleasant residential streets, it's easy to see why it is so popular.
0:31:37 > 0:31:43The property is a one-bedroom flat in this block. It looks fairly well-maintained from the outside.
0:31:43 > 0:31:45Let's take a look inside.
0:31:45 > 0:31:50The flat's on the second floor of this 25-year-old building.
0:31:50 > 0:31:54And its guide price at auction was 59,950.
0:31:54 > 0:31:57The approach is lovely with expansive gardens,
0:31:57 > 0:32:01making you feel as though you're in a very peaceful park.
0:32:01 > 0:32:07Well, whenever you're looking at a flat in a block, before you even get to the flat itself,
0:32:07 > 0:32:11you want to look at the communal areas, the stairs, the grounds, etc.
0:32:11 > 0:32:16The outside looks pretty good and it gets better in some ways when you come inside
0:32:16 > 0:32:22because the stairway here has got a nice carpet. It's been recently painted. It's all boding well.
0:32:22 > 0:32:26So hopes are set pretty high as you come through the door.
0:32:26 > 0:32:30And do you know what? First impressions? Not too bad.
0:32:30 > 0:32:36The carpet's tired. But it doesn't smell damp. Looks OK. Reasonably clean walls. Nice colours.
0:32:36 > 0:32:42Bathroom? Yeah, reasonably trendy. So we like that. It's got a white suite. That's good news.
0:32:42 > 0:32:46That's your bedroom. It's not huge, but not bad for a one-bedroom flat.
0:32:46 > 0:32:50Kitchen? Well, yeah... It's not that huge.
0:32:50 > 0:32:52But again, it's a one-bedroom flat.
0:32:52 > 0:32:58And actually the units look to be in reasonable condition, so I'm liking this place a lot.
0:32:58 > 0:33:04In fact, it's in such good nick that you could move in straight away without having to do much at all.
0:33:04 > 0:33:11And finally, the living room. Yes, I mean, you've even got a balcony, looking out over the gardens!
0:33:11 > 0:33:13I have to say it -
0:33:13 > 0:33:17there really is nothing wrong with this place.
0:33:17 > 0:33:20# Something tells me I'm into something good
0:33:20 > 0:33:24# Something tells me I'm into something... #
0:33:24 > 0:33:31And looking out over those well-kept gardens, are they expensive as well as expansive?
0:33:32 > 0:33:38Don't forget that when you buy a flat it's really important that you check out the lease
0:33:38 > 0:33:42or get your solicitor to do so. Along with the other tenants,
0:33:42 > 0:33:47you will be partly responsible for the upkeep of the grounds, such as these communal lawns.
0:33:47 > 0:33:51They won't cost much to look after, but you need to be aware of that.
0:33:51 > 0:33:57In fact, the service charge here is £500 per annum, including building insurance.
0:33:57 > 0:34:00But the ground rent's a mere £10 a year.
0:34:00 > 0:34:03Time for a local estate agent to give us his opinion
0:34:03 > 0:34:06of this cosy little flat.
0:34:06 > 0:34:08Well, it needs a little bit of work doing to it.
0:34:08 > 0:34:10But it's ideal for a first-time buyer
0:34:10 > 0:34:14who wants their first home in a popular part of town.
0:34:14 > 0:34:17As it's on the top floor, it might not suit everybody
0:34:17 > 0:34:21because there's two flights of stairs to go up, carrying shopping.
0:34:21 > 0:34:25Might be a problem. But apart from that, I don't see a great deal wrong.
0:34:25 > 0:34:32I can't help but agree and being so close to the town centre, it could make an ideal rental unit.
0:34:32 > 0:34:34What kind of income could it generate?
0:34:34 > 0:34:41In the rental market, I would suggest it would achieve a rental income of around about £450 per calendar month.
0:34:42 > 0:34:47If you manage to get the place for near its guide price of around 60,000,
0:34:47 > 0:34:52it would be ripe for rental. It could achieve a very healthy yield,
0:34:52 > 0:34:55making this gem of a property even more appealing.
0:34:55 > 0:34:57# You're so desirable
0:34:57 > 0:35:00# I can't resist you... #
0:35:00 > 0:35:05What could the resale value be once it's been freshened up a bit?
0:35:05 > 0:35:09In the sales market, I would suggest once the property's finished,
0:35:09 > 0:35:13it would sell for a price of between £80,000 and £85,000.
0:35:13 > 0:35:18Well, more often than you might think, properties like this do come up for auction.
0:35:18 > 0:35:21There is absolutely nothing wrong with this flat.
0:35:21 > 0:35:25You could literally move into it as it is or rent it out.
0:35:25 > 0:35:29It's just a case of being there on the auction day.
0:35:29 > 0:35:32Let's find out who was when it went under the hammer.
0:35:34 > 0:35:36We'll move on now to lot number 46.
0:35:36 > 0:35:39There with a price guide of 59,950.
0:35:39 > 0:35:4260,000. Do I have 60,000 in the room anywhere?
0:35:42 > 0:35:4460,000 right on the back wall.
0:35:44 > 0:35:46Can I ask for 61,000 anywhere?
0:35:46 > 0:35:51I've got 60,000 right on the back. I need 61.
0:35:51 > 0:35:5461,000. It's against you. It's the lady at 61.
0:35:54 > 0:35:5662 bid. 63.
0:35:56 > 0:35:5864. 65.
0:35:58 > 0:36:04You're shaking. At 65, do you not want to nod? We're selling to the lady at 65,000.
0:36:04 > 0:36:06I'll take a half?
0:36:06 > 0:36:09I'm selling it once at 65.
0:36:09 > 0:36:14I'm selling for the second time at £65,000. Sold.
0:36:14 > 0:36:18£65,000 to the lady in the pink shirt.
0:36:18 > 0:36:22'The victor in that lightning fast auction was Jan.
0:36:22 > 0:36:28'She bought the flat for £65,000 and was actually bidding for her daughter Abby.
0:36:31 > 0:36:35'I went to meet Abby and her father Ray to find out more.'
0:36:35 > 0:36:40- Abby, Ray, lovely to meet you both. - And you.- Hello.- Congratulations. - Thank you.
0:36:40 > 0:36:45- Tell me why you wanted to buy this place.- This is my first house.
0:36:45 > 0:36:48I'm 23, so it's my first venture into getting my own home.
0:36:48 > 0:36:54Wow! It is really difficult these days for first-time buyers to get on the property ladder.
0:36:54 > 0:36:59- So what was your story?- I've been living at home since I moved back from university three years ago.
0:36:59 > 0:37:04I've been saving up, so I had some help from my family in guiding me through the financial side.
0:37:04 > 0:37:10- Great. What was it about it that you liked, Abby?- I think being by myself and only being 23,
0:37:10 > 0:37:16it's just the perfect size for what I want. The kitchen is a good size. The living room's definitely a good size.
0:37:16 > 0:37:20The balcony brings in a lot of light. And also the local area.
0:37:20 > 0:37:25The site across from us is an old college site with brand-new buildings on,
0:37:25 > 0:37:28so it obviously will increase the house prices later on when I sell it.
0:37:29 > 0:37:32'Abby's a teacher
0:37:32 > 0:37:36'and has obviously been doing her homework where property's concerned.
0:37:36 > 0:37:39'Dad Ray has retired from the manufacturing industry
0:37:39 > 0:37:43'and manages three buy-to-let properties with Abby's mum Jan.
0:37:43 > 0:37:49'He's obviously given Abby lessons in what to look for and she's been a very attentive student.'
0:37:49 > 0:37:55Well, we looked about three months ago to make a decision on buying property, saw this place.
0:37:55 > 0:38:01I came, then you came to have a look at it. Interesting, because it's the first time I've been to an auction.
0:38:01 > 0:38:07- And we took it from there, really. - Am I right in thinking it was up for sale for quite a lot more?
0:38:07 > 0:38:12It had been for sale for 12 months, which is presumably why they put it into the auction.
0:38:12 > 0:38:16- And I think 12 months ago, it was about 89,000.- Right.
0:38:16 > 0:38:20- There's a property on the same block here at 78, currently.- Right.
0:38:20 > 0:38:23So we thought the price at anywhere from 60 to 68,
0:38:23 > 0:38:29which is probably the maximum we would've paid, was about right. So worked out very well.
0:38:31 > 0:38:33'That's definitely the way to do it.
0:38:33 > 0:38:39'Although it was Ray and Abby's first property auction, they knew exactly what it was worth
0:38:39 > 0:38:42'and how much they were prepared to pay.
0:38:42 > 0:38:47'Now they've got the place, they want to maximise their investment.'
0:38:47 > 0:38:53Basically, it's looking tired and old, so we're looking at replacing, for example, the external windows
0:38:53 > 0:38:57- and the sliding doors for a start. - So replace the windows, right?
0:38:57 > 0:39:01- Um... Why?- Basically, because it's going to be my home.
0:39:01 > 0:39:07You could practically live in here as a rental property or if you want to come straight in to live in it,
0:39:07 > 0:39:12but I want to make it a home, and for resale later on, to increase the price of the property.
0:39:12 > 0:39:18And in terms of energy efficiency, it's better off replacing old, tired, wooden, aluminium windows
0:39:18 > 0:39:23for the better, modern alternatives. As well as that, we're looking at maybe insulating the roof space,
0:39:23 > 0:39:29so we'll look at some storage up there and more insulation as it helps energy efficiency.
0:39:29 > 0:39:34I have to say, to your credit, a lot of 23-year-olds wouldn't be putting more insulation in the loft
0:39:34 > 0:39:41and putting in new double glazing! It would be like funky furniture and plasma screen TVs.
0:39:41 > 0:39:47- But you're really thinking about the property.- Well, I've got previous experience from helping out
0:39:47 > 0:39:52and project-managing rental properties that my parents have bought.
0:39:52 > 0:39:57So I have got a bit of a wise head on myself, basically in terms of re-doing properties.
0:39:57 > 0:40:00And yes, sadly, my first thought is insulation!
0:40:00 > 0:40:04'It seems that Ray and his wife have taught science teacher Abby
0:40:04 > 0:40:08'all she needs to know about developing her first property.'
0:40:08 > 0:40:11# We've got the chemistry right
0:40:11 > 0:40:14# We didn't have to try
0:40:14 > 0:40:17# It just turned out that way Whoa-oa-oa... #
0:40:17 > 0:40:22'Abby won't stop at just external improvements to her new bachelorette pad.'
0:40:22 > 0:40:28Kitchen, although it looks new, the layout doesn't work. The sink's the wrong way round. It's not manageable.
0:40:28 > 0:40:33We're going to have a new kitchen in there, including new work surfaces.
0:40:33 > 0:40:36Laminated flooring from kitchen to bathroom.
0:40:36 > 0:40:40They'll be all matching. And a new bathroom. It's looking tired.
0:40:40 > 0:40:44And we're hoping to get, basically, a shower/bath put in.
0:40:44 > 0:40:51- How much will you spend?- We reckon 6,000. In addition, the heating as well, as the boiler's 25 years old.
0:40:51 > 0:40:57- Could be tight. You're going to do the kitchen, bathroom, boiler and the windows.- Well...- And insulation.
0:40:57 > 0:40:59My wife is a dab hand on the internet.
0:40:59 > 0:41:04- The bathroom suite cost £350 off the internet.- You've got it already?
0:41:04 > 0:41:07- Yeah. That's in the garage. - Is it? All right.
0:41:08 > 0:41:13'They've certainly got big plans and will need to keep a tight rein on those purse strings
0:41:13 > 0:41:19'to bring the work in on budget. I wonder who'll be the driving force in this developing duo?'
0:41:19 > 0:41:23Well, both of us, really. But I'm retired now, so I get lumbered.
0:41:23 > 0:41:27- So I'm the project manager. - That's what dads are for. Sorry.
0:41:27 > 0:41:33So on a day-to-day basis over the next few weeks, I'll be here, organising the electrician, plumber,
0:41:33 > 0:41:36kitchen fitter, that kind of thing.
0:41:36 > 0:41:42- So what kind of timescale, Abby? - We want to turn it round very quick. You want to get me out of the house!
0:41:42 > 0:41:48- Hopefully, turn it round in two months, two-and-a-half months.- Right. And then you'll be in.- Yeah.- Yeah.
0:41:48 > 0:41:55- Will you be sad to see her go or happy?- We've had practice cos she was at university for three years,
0:41:55 > 0:42:00- so we know what it's like, but of course we'll miss her.- I'm delighted for you. It's a great flat.
0:42:00 > 0:42:07- And I wish you all the best.- Thank you.- Good luck.- Thank you.- We look forward to seeing how you get on.
0:42:07 > 0:42:13Well, Abby clearly knows exactly what she's doing. With Dad's help, I'm sure she'll get on just fine.
0:42:13 > 0:42:19But she is undertaking some major projects - windows, doors, kitchen, bathroom.
0:42:19 > 0:42:24I mean, can she really keep under that £6,000 budget? I think it's going to be tight.
0:42:24 > 0:42:27You can find out how she gets on later in the show.
0:42:31 > 0:42:38If you want to profit from property, timing is crucial. And you've got to be flexible with your plans.
0:42:38 > 0:42:43Yes, and don't let time pass you by. So here's how today's buyers got on.
0:42:44 > 0:42:49'Let's make our way back to Maidstone, where just off this main road,
0:42:49 > 0:42:53'I visited this very tiny telephone repeater station.
0:42:55 > 0:42:59'It was purchased by Anna for her son Arkan.
0:42:59 > 0:43:03'She was gripped by auction fever and paid a whopping £25,000 for the property,
0:43:03 > 0:43:07'plus the quarter-acre plot it sat on.
0:43:07 > 0:43:13'Her son Arkan dreamed of turning this little brick building into his new home.'
0:43:13 > 0:43:19- You want to live in this?- Yeah. It would be brilliant, yeah. - And what would it look like?
0:43:19 > 0:43:24It would look like a tiny little cottage, you know. I'll build a chimney on the side. Yeah.
0:43:24 > 0:43:30Anna broke the golden rule of buying at auction. She didn't read the legal pack before she bought it
0:43:30 > 0:43:34and didn't know they'd struggle to get planning permission.
0:43:34 > 0:43:40Luckily, she and Arkan were prepared to play the long game to see if the situation might change.
0:43:40 > 0:43:44A whole one year later to the day, we're back.
0:43:44 > 0:43:47So what's new?
0:43:47 > 0:43:51# I can see that nothing's changed at all... #
0:43:51 > 0:43:54What have Anna and Arkan been up to?
0:43:55 > 0:43:58Hardly anything.
0:43:58 > 0:44:00Hmm... Yes, I can see that.
0:44:00 > 0:44:03We're a bit naughty. We haven't done much.
0:44:03 > 0:44:07Just talking, really, to everybody and asking their opinions and...
0:44:07 > 0:44:10We'll see how it goes. We haven't done a lot.
0:44:10 > 0:44:14In fact, they have yet to apply for planning permission
0:44:14 > 0:44:20as they were advised by their architect that it would be impossible to obtain.
0:44:21 > 0:44:27I feel a bit... A bit restless cos I do want to, um...get things moving.
0:44:27 > 0:44:32But I don't... I don't want to make any mistakes either, you know, so it's quite...
0:44:32 > 0:44:37I don't mind, to be honest, taking my time. I think it's a safe option, really.
0:44:37 > 0:44:42And I'd rather be safe than sorry, so... And I love this little building. It's very small.
0:44:42 > 0:44:46But I know I can... I would definitely love to live in this.
0:44:46 > 0:44:48It's like a little cottage, really.
0:44:48 > 0:44:54Arkan's wise to be cautious. As long as they don't do anything without planning permission,
0:44:54 > 0:44:59the land will likely increase in value, so they won't lose out by sitting on it
0:44:59 > 0:45:04and waiting to see if the planning situation changes.
0:45:04 > 0:45:11The lands adjacent to this plot have only just been sold, so if we could wait to see what happens,
0:45:11 > 0:45:16if any development takes place on the adjacent lands, then that would, you know...
0:45:16 > 0:45:18That would be a lot better for us.
0:45:18 > 0:45:24Arkan's right. If the much bigger plots of land either side were to get planning permission,
0:45:24 > 0:45:28that could change things for him, but is it really a ray of light?
0:45:33 > 0:45:37# Quicker than a ray of light
0:45:37 > 0:45:41# Quicker than a ray of light... #
0:45:41 > 0:45:44For the moment, for Arkan and Anna,
0:45:44 > 0:45:48it's a case of hold tight and wait and see.
0:45:48 > 0:45:53We invited two local property experts to give us their opinions,
0:45:53 > 0:45:56including the estate agent who viewed it previously.
0:45:56 > 0:46:01It's my second time here and I'm not surprised nothing's been done
0:46:01 > 0:46:05because it's the sort of something that you don't know what to do with.
0:46:05 > 0:46:11I'm not surprised that nothing's yet been built. I think for the area and the size of the plot
0:46:11 > 0:46:16and a severe lack of residential property in the immediate location,
0:46:16 > 0:46:20it's not surprising they haven't been able to do anything with it.
0:46:21 > 0:46:24What about possible commercial use?
0:46:27 > 0:46:30Some form of commercial use,
0:46:30 > 0:46:34subject to the relevant planning permissions, could be found.
0:46:34 > 0:46:37There's a lot of local farms and produce in the area.
0:46:37 > 0:46:41So whether it could be used as some sort of farm shop or local flowers
0:46:41 > 0:46:47or something along those lines would probably be its best use as it currently stands.
0:46:47 > 0:46:53The problems with sort of doing anything with this property is going to be the cost of services,
0:46:53 > 0:46:57the main road which is a really difficult road to come out on to.
0:46:57 > 0:47:02So with all these into consideration, it's better that they just sit on it for the time being.
0:47:02 > 0:47:09Bearing in mind Anna's purchase price of 25,000, what could the property be worth at the moment?
0:47:09 > 0:47:16I think the value of this plot is probably somewhere in the region of around £20,000 for it.
0:47:16 > 0:47:20Again, it's just really what somebody might need it for.
0:47:20 > 0:47:24It really doesn't have much of a value to most people
0:47:24 > 0:47:28because it isn't anything. It can't be used for anything.
0:47:28 > 0:47:35It's essentially a big back garden with a shed, so its value is what someone's prepared to pay for it.
0:47:37 > 0:47:42Remember at the auction, the underbidder was prepared to pay 23,000,
0:47:42 > 0:47:48so over the long term, it's unlikely Anna will lose money on her £25,000 investment.
0:47:49 > 0:47:54So what's next for this property developing mother and son?
0:47:55 > 0:48:00If we succeed in this one, let's say... I think we'll give it for three years?
0:48:00 > 0:48:06- We'll never fail. We're not going to fail.- In the next three years, we'll have to finish this project here.
0:48:06 > 0:48:11And then maybe we sell it and with that money we can buy a bigger one.
0:48:11 > 0:48:18- We can possibly do it. But next time you'll be the boss and I'll be the assistant.- Oh, right!- Yeah?
0:48:18 > 0:48:20No, you'll always be the boss.
0:48:20 > 0:48:25I wish them both well, but let's hope that after this cautionary tale,
0:48:25 > 0:48:28they do their research next time.
0:48:28 > 0:48:33# Quicker than a ray of light I'm flying... #
0:48:39 > 0:48:44'The clock's been ticking and it's time to return to Darlington.
0:48:44 > 0:48:50'It was here that we saw this lovely little one-bed, top floor flat in a 25-year-old apartment complex
0:48:50 > 0:48:53'in a highly desirable area.
0:48:53 > 0:48:55'The decor was dated
0:48:55 > 0:49:00'with '80s design fads, such as dark wood doors and Artex ceilings.
0:49:00 > 0:49:03'But all in all, it was in very good nick.
0:49:03 > 0:49:10'It was purchased for £65,000 by 23-year-old school science teacher Abby.
0:49:10 > 0:49:12'It was to be her first home.
0:49:12 > 0:49:18'Her property developer dad Ray would be lending a helping hand with the renovations.
0:49:18 > 0:49:22'Abby was viewing this flat, not only as her bachelorette pad,
0:49:22 > 0:49:25'but also as the first addition to her property portfolio.
0:49:25 > 0:49:30'And she was more concerned with keeping the flat warm than flat-warming parties.'
0:49:30 > 0:49:34We're looking at maybe insulating above. We own the roof space.
0:49:34 > 0:49:37I have to say, to your credit, a lot of 23-year-olds,
0:49:37 > 0:49:43their first things wouldn't be putting more insulation in the loft and putting in new double glazing!
0:49:43 > 0:49:47It'd be like funky furniture and plasma screen TVs.
0:49:47 > 0:49:50Yes. Sadly, my first thought is insulation!
0:49:50 > 0:49:57'Science teacher Abby was intent on creating the right chemistry between neutral colours
0:49:57 > 0:50:03'that will help her sell the flat in the future and reflecting her own taste for bright and modern design.
0:50:03 > 0:50:10'We returned four months later to see if she's managed to combine those elements successively.'
0:50:12 > 0:50:15# Ah, ah All about chemistry
0:50:15 > 0:50:20# Won't you show me everything you know?
0:50:20 > 0:50:23# Ah, ah All about chemistry
0:50:23 > 0:50:27# Oh-whoa-oh-oh-oh... #
0:50:28 > 0:50:31It's definitely got a newer hint to it.
0:50:31 > 0:50:37- It's much more modern. - Lighter.- It's cleaner, lighter. Definitely much more of a home now.
0:50:38 > 0:50:41# It's all about chemistry... #
0:50:41 > 0:50:45I tried to stay quite neutral in some of the colours I picked,
0:50:45 > 0:50:51but then have feature colours. So in the living room, there's purples and pinks, but not too much.
0:50:51 > 0:50:55Does her property developer dad Ray like it?
0:50:55 > 0:50:59Yes, I do. Yeah. It's definitely girly, I think.
0:50:59 > 0:51:04Not just the wallpaper, but some of the decor as well, as you'd expect, because it is a home.
0:51:04 > 0:51:10That's the important part. It's not just to sell on, it's for you to live in. And that's great.
0:51:10 > 0:51:13# Oh, baby, it's home sweet home
0:51:13 > 0:51:16# Do-do-do-do-do, do-do... #
0:51:16 > 0:51:21Well, I think Abby's experiment has been a success.
0:51:21 > 0:51:24# Home sweet home Do-do-do-do-do, do-do... #
0:51:24 > 0:51:28The feature wallpaper in the living room is bold and bright
0:51:28 > 0:51:33while neutral-coloured walls and carpets ensure it's not overpowering.
0:51:33 > 0:51:37I'm particularly impressed by the kitchen and the quality of finish.
0:51:42 > 0:51:48OK, in the kitchen, we have replaced the windows with new double glazing.
0:51:48 > 0:51:53We took out all the old kitchen surfaces and we replaced them with brand-new ones.
0:51:53 > 0:51:56Also replaced all the radiators. Brand-new boiler as well,
0:51:56 > 0:51:59which meant we had to do all the plumbing in the flat.
0:51:59 > 0:52:03We replaced the very unattractive floor tiles on the wall
0:52:03 > 0:52:09with some nice, much more subtle wall tiles. But they're much better and much nicer.
0:52:09 > 0:52:15Abby and Ray have done a fantastic job in the kitchen. What about that gloomy bathroom?
0:52:15 > 0:52:17# Home sweet home... #
0:52:17 > 0:52:22This little flat packs a big punch in terms of instant appeal.
0:52:22 > 0:52:28Abby and Ray have spent money where it counts and can be recouped - the kitchen and the bathroom.
0:52:28 > 0:52:34We kind of went for the hotel look, as my friends said. They all say it looks a bit like a hotel now.
0:52:34 > 0:52:40But it's quite neutral, so if I do sell on in the future, it's nothing garish that other people won't like.
0:52:40 > 0:52:44So it's very much neutral and definitely more modern now.
0:52:45 > 0:52:49Abby and Ray's efforts have really transformed this flat.
0:52:49 > 0:52:53The quality of finish and attention to detail is evident throughout.
0:52:53 > 0:52:56They've even insulated the roof.
0:52:56 > 0:53:00Abby's love of contemporary design can be seen in the bedroom.
0:53:01 > 0:53:07She purchased this property with a mortgage while Mum and Dad were paying for the renovation.
0:53:07 > 0:53:11So how deep were her parents' pockets?
0:53:11 > 0:53:18Originally, we looked at, as we bought the property for 65,000, spending around about 6,000,
0:53:18 > 0:53:22- but we kind of went over that, didn't we? - Yeah. We came in at 10,000.
0:53:22 > 0:53:26Which I think probably reflects a little bit that it's Abby's home.
0:53:26 > 0:53:30So we probably spent more on items than we would've done
0:53:30 > 0:53:36and previously have done when we've been doing buy-to-let, as you do.
0:53:36 > 0:53:41However, that £4,000 overspend includes all the replacement windows and balcony door,
0:53:41 > 0:53:45plus new boiler and plumbing, so not too bad.
0:53:45 > 0:53:50They also managed to complete the work within their two-month schedule.
0:53:50 > 0:53:56Now the flat's looking so inviting, does Abby see herself living here long term?
0:53:56 > 0:54:00I guess there's two different options in, like, two years' time.
0:54:00 > 0:54:04Maybe sell on, but probably looking more at keeping this property
0:54:04 > 0:54:07and just renting it and buying another place as well,
0:54:07 > 0:54:11- so kind of building up a property portfolio.- She's got the family bug.
0:54:11 > 0:54:17Before you move out, Abby, I hope you find time for that flat-warming party.
0:54:17 > 0:54:21I was... I don't know. I don't want to get my carpets dirty now.
0:54:21 > 0:54:26I'm quite scared of inviting people round cos I don't want to touch anything yet.
0:54:26 > 0:54:30Oh, come on, Abby, you're only young once.
0:54:30 > 0:54:34But before she sends out the party invites,
0:54:34 > 0:54:37we invited two local estate agents along
0:54:37 > 0:54:40to see if they're as impressed by the place as I am.
0:54:40 > 0:54:41Wow!
0:54:41 > 0:54:45Not enough words to say to it. What a beautiful job!
0:54:45 > 0:54:50Very tastefully appointed. The decor is absolutely fantastic.
0:54:50 > 0:54:54I love the way it's all put together in every respect.
0:54:54 > 0:54:57The owners have done a very good job.
0:54:57 > 0:55:00It's very tastefully appointed. It's very attractive.
0:55:00 > 0:55:02Very appealing. I like the kitchen.
0:55:02 > 0:55:07I like the bathroom and the decor. I think they've done an excellent job.
0:55:07 > 0:55:12Bearing in mind Ray and Abby's total outlay of 75,000,
0:55:12 > 0:55:16how much could this apartment achieve if sold?
0:55:17 > 0:55:23I'd market this property at offers invited in the region of £85,000.
0:55:23 > 0:55:27If the owners were to put the property on the open market to sell,
0:55:27 > 0:55:32I would suggest an asking price of somewhere around about £80,000 to £85,000.
0:55:32 > 0:55:38- I think that's probably what we were thinking.- Yeah. A good £5,000, maybe even £10,000 profit on that,
0:55:38 > 0:55:41- which is...- Good. - Really, really good.
0:55:41 > 0:55:48Not too bad at all. But Abby wants to keep this property even when it comes time for her to move on.
0:55:48 > 0:55:51So what could it achieve as a rental?
0:55:53 > 0:55:58Rental valuation, I would estimate to be £425 per month.
0:55:58 > 0:56:00In my opinion, in the current market,
0:56:00 > 0:56:06I would see the rental value for this property at somewhere around about £400 to £425 per calendar month.
0:56:06 > 0:56:10- Wow!- That's very good.- That's much more than I thought it would be.
0:56:10 > 0:56:15- We were thinking 350. - We've got properties rented for that kind of money,
0:56:15 > 0:56:18two or three-bedroomed houses, so that's really good.
0:56:18 > 0:56:23Those figures could give Abby a rental return of between 6.5% and 7%.
0:56:23 > 0:56:28So would Ray and Abby go to another auction?
0:56:28 > 0:56:33As long as you do the homework and find the right place that you're looking for,
0:56:33 > 0:56:37rather than just going to an auction and panicking when you get there.
0:56:37 > 0:56:42Make sure it's the one you want and where you want it. And if you can't afford it, don't buy it.
0:56:43 > 0:56:46# Home sweet home... #
0:56:50 > 0:56:57- We'll have more stories for you next time on Homes Under The Hammer. - See you then.- Goodbye.- Goodbye.
0:57:14 > 0:57:18Subtitles by Subtext for Red Bee Media Ltd - 2011
0:57:18 > 0:57:21Email subtitling@bbc.co.uk