0:00:02 > 0:00:05Property continues to fascinate people despite the current downturn.
0:00:05 > 0:00:09In fact, the market being less bullish means there are bargains out there.
0:00:09 > 0:00:14Buying at the right price is vital if you want to see any profit at the end of the day.
0:00:14 > 0:00:17And going to the auction is a great way to do that.
0:00:43 > 0:00:48- The three properties on today's show are very different.- But the one thing they have in common
0:00:48 > 0:00:53is that the new owners hope they'll be making some money. Let's see what they bought.
0:00:54 > 0:00:58'There's love in the air in Cornwall, but you'd better careful.'
0:00:58 > 0:01:03This is definitely a property where you must not let your heart rule your head.
0:01:03 > 0:01:08'There's one of the smallest properties I've ever seen in Hertfordshire.'
0:01:08 > 0:01:11So, let's take a little look around.
0:01:11 > 0:01:14There you go. I've done it.
0:01:14 > 0:01:19'And I visit a terraced house in Plymouth which is frankly a little confusing.'
0:01:21 > 0:01:24This is really, really odd.
0:01:25 > 0:01:29'All these properties were sold at auction. We find out who bought them
0:01:29 > 0:01:33- 'and what they paid for them when they went under the hammer.' - Sir, well done.
0:01:37 > 0:01:43'On the outskirts of St Austell, Cornwall, is the pretty village of Bugle.
0:01:43 > 0:01:48'That's where today's search has brought me, to an apparently quintessentially Cornish property
0:01:48 > 0:01:50'on a fairly busy road.'
0:01:53 > 0:01:56Sounded pretty extraordinary in the catalogue.
0:01:56 > 0:01:58Two-bedroomed character cottage.
0:01:58 > 0:02:02Guide price, £90,000.
0:02:02 > 0:02:04And how about that?
0:02:10 > 0:02:16'From the outside, it certainly is "whoo-hoo". Picturesque would be one way to describe it.'
0:02:19 > 0:02:24You never know with cottages like this whether they're going to be cutesy-wutesy or small and dingy.
0:02:24 > 0:02:29In this case, I have to say, it doesn't look quite as big inside as it does from the outside.
0:02:29 > 0:02:35Living room with the real fire, then over into this room, which is the main other room downstairs.
0:02:35 > 0:02:40Nice to see this. I mean, OK, it's starting to teeter towards cutesy-wutesy.
0:02:40 > 0:02:44An old range here. Look at this.
0:02:44 > 0:02:46- HE LAUGHS - Whistling kettle. Absolutely fantastic.
0:02:46 > 0:02:50- KETTLE CLATTERS - Not very practical but, hey, who cares?
0:02:50 > 0:02:56I guess that... I'll just check. Yeah, that is a solid fuel range,
0:02:56 > 0:03:00so my guess is, no central heating. Low-ish ceiling.
0:03:00 > 0:03:04But strip those beams back, that would be quite nice. Through into the kitchen.
0:03:04 > 0:03:09Surprisingly, compared to the rest of the house, this isn't a bad size.
0:03:09 > 0:03:12That's because it's built into a bit of an extension.
0:03:12 > 0:03:15Not an idea shape, though. And then it gets a little bit worse,
0:03:15 > 0:03:18because the only loo in the house is through the kitchen.
0:03:18 > 0:03:25So, all in all, it needs reworking, but you haven't got a lot of options in terms of how to rework it.
0:03:27 > 0:03:30'But that doesn't have to be negative,
0:03:30 > 0:03:35'because there's enough character in here to forgive a multitude of shortcomings.'
0:03:35 > 0:03:40So, fairly traditional layout up here. You've got a bedroom over that side.
0:03:40 > 0:03:44It's kind of small, it's kind of cute, but it's a cottage. Another one over this side.
0:03:44 > 0:03:49Nice floorboards. I'd like to see those stripped back. And these charming little features.
0:03:49 > 0:03:54The deep recessed windows. It's a little old cottage, for goodness sake.
0:03:54 > 0:03:57Practically, though, you've got that loo downstairs.
0:03:57 > 0:04:00Obviously, in an ideal world, you'd want to move that upstairs.
0:04:00 > 0:04:05There is a bit of space here. You could possibly contemplate doing something.
0:04:05 > 0:04:10I'm not so sure. And is it worth it? It depends how much time you're going to spend here, I guess.
0:04:13 > 0:04:18'Is it really worth spending lots of cash just to spend a penny upstairs?
0:04:18 > 0:04:25'The new owners would have to decide if they want to pay thousands of pounds just to spend that penny.
0:04:26 > 0:04:32'There are two sizeable bedrooms at the moment, and I'd be tempted to leave things as they are.'
0:04:34 > 0:04:40One of the big issues with this property becomes apparent when you come out to the front again,
0:04:40 > 0:04:45because this area to the side of the property is the only access you've got for a car for the cottage.
0:04:45 > 0:04:51And it gets worse, because at the back of the property is another separate property.
0:04:51 > 0:04:55And this is shared access to that property, as well.
0:04:55 > 0:05:02So, one thing's for certain, before you buy this, you must make sure that you read the legal pack
0:05:02 > 0:05:07and that your solicitor checks out exactly who owns and has rights to what.
0:05:07 > 0:05:13'That shared access with the salmon-pink property at the back of this house could be a problem.
0:05:13 > 0:05:15'What can a local estate agent tell me
0:05:15 > 0:05:19'about this lovely little cottage?'
0:05:19 > 0:05:24It's a very pretty typical Cornish cottage. It just needs general tidying up, really.
0:05:24 > 0:05:26Obviously, redecorating, some new floor coverings,
0:05:26 > 0:05:31perhaps changing the kitchen, bathroom, and maybe the layout.
0:05:32 > 0:05:35'If the cottage was renovated and brought up to modern standards,
0:05:35 > 0:05:38'what could it fetch if sold?'
0:05:38 > 0:05:43I would anticipate this going onto the market for £145,000.
0:05:43 > 0:05:47'What could it rent for once renovated?'
0:05:48 > 0:05:51For rental, we could achieve around £600 per calendar month.
0:05:53 > 0:05:57Well, it's certainly cute, but this is definitely a property
0:05:57 > 0:06:01where you must not let your heart rule your head.
0:06:01 > 0:06:04There are some serious issues, not least the access, noise from the road
0:06:04 > 0:06:08and, practically, by the time you get furniture in there,
0:06:08 > 0:06:13it is going to be pretty small. Still, I'm sure that somebody will have fallen in love with it
0:06:13 > 0:06:16and bought it at the auction. Let's find out who it was.
0:06:19 > 0:06:21Two bedrooms, good dimensions,
0:06:21 > 0:06:24two reception rooms. It's a nice cottage.
0:06:24 > 0:06:27Who's going to say 100? Nice and simple?
0:06:27 > 0:06:3090, then. Guide price.
0:06:30 > 0:06:33At 90. Thank you, 90. Knew I was serious.
0:06:33 > 0:06:36It's not yours any more. 1. 91.
0:06:36 > 0:06:3892. 93.
0:06:38 > 0:06:4294. 95. 96, then. OK, 96.
0:06:42 > 0:06:4597. 98.
0:06:45 > 0:06:48And a half. 99.
0:06:48 > 0:06:51And a half. 99 and a half. At 99 and a half.
0:06:51 > 0:06:53At 99 and a half for lot three.
0:06:53 > 0:06:58At 99 and a half once. At 99 and a half twice.
0:06:59 > 0:07:03New face says 100. At 100 for the first time.
0:07:03 > 0:07:06For the second time.
0:07:06 > 0:07:09For the third and last time, make no mistake. All done? Last chance.
0:07:09 > 0:07:12Sell at 100. Sir, well done.
0:07:12 > 0:07:18'With their bid of £100,000, the new owners of the cottage are Gwen and Arthur.
0:07:18 > 0:07:23'They look pretty pleased and pretty surprised to have got it.'
0:07:23 > 0:07:27# Surprise, surprise, surprise
0:07:27 > 0:07:32'They're a retired couple from Cheshire, and I met them back at their very picturesque new cottage
0:07:32 > 0:07:34'to find out their plans.'
0:07:35 > 0:07:39- Arthur, Gwen, lovely to meet you both. Congratulations.- BOTH: Thank you.
0:07:39 > 0:07:44- Why did you choose this particular little place?- Well, there's a story.
0:07:44 > 0:07:48- We didn't come to the auction to buy this property.- Right.
0:07:48 > 0:07:53We did everything by the book, we did all the legal packs for about three properties.
0:07:53 > 0:07:58- Did the viewings. - And they went first. We got outbid.
0:07:58 > 0:08:02- And then this came up. - We only put the one bid in.
0:08:02 > 0:08:08We play a little bit of a game that when we look at the photographs and details in the auction,
0:08:08 > 0:08:13- we put our own value on it.- Right. - And say, "That's the target. We'll not go above that."
0:08:13 > 0:08:18And for this one, we got it for exactly what we had decided was our limit.
0:08:18 > 0:08:23When it went to our price, he just shot his hand up and that was it!
0:08:23 > 0:08:26And we had two sleepless nights when we bought it.
0:08:26 > 0:08:31- Right. Why?- We were worried to death, cos it wasn't what we thought, we hadn't seen it.
0:08:31 > 0:08:35Very uncertain whether we'd done the right thing.
0:08:35 > 0:08:39Cos, obviously, we hadn't followed the usual pattern of making sure that you view it,
0:08:39 > 0:08:43your advice, and others', look at the legal pack,
0:08:43 > 0:08:46which we hadn't done either for this particular property.
0:08:46 > 0:08:50We'd spent hours and hours looking at all the other details!
0:08:50 > 0:08:56'A warning to all potential buyers. Don't do what Gwen and Arthur did,
0:08:56 > 0:08:59'which is buy a house without seeing it first.
0:08:59 > 0:09:01'They didn't even know where it was!'
0:09:01 > 0:09:07- We drove to where we thought the cottage was...- And it wasn't there. - THEY LAUGH
0:09:07 > 0:09:13- Then the panic set in. - We really were panicked. Weren't we?
0:09:13 > 0:09:18We went all around the village and all over the place and we couldn't find it.
0:09:18 > 0:09:20I've got this image of you two in your car...
0:09:20 > 0:09:24- I know!- ..driving round, trying to find the house you've just bought!
0:09:24 > 0:09:30- I was very nearly in tears. - We used the SatNav but, for some reason, it didn't find it
0:09:30 > 0:09:34and it was taking us to horrible places and we were getting more and more worried.
0:09:34 > 0:09:40- But then when we came across the cottage, it was... It was quite a relief, actually.- Yeah.
0:09:41 > 0:09:45'Well, the couple have bought the cottage as a second home
0:09:45 > 0:09:48'so that Gwen can be closer to her grandchildren.
0:09:48 > 0:09:53'What do they think of their purchase now they know it's only got shared access?'
0:09:53 > 0:09:55Having been in here now,
0:09:55 > 0:09:59having read through the legal pack, what do you think?
0:10:00 > 0:10:02Love it. Can't wait to get started.
0:10:02 > 0:10:07Yeah, we think it's in a lovely spot when you stand in the garden, apart from the traffic,
0:10:07 > 0:10:13but the house is well back from the road. With a bit of double glazing, it don't think it'll be a problem.
0:10:13 > 0:10:16We've thought of different things where we could do the drive
0:10:16 > 0:10:19and then we thought it could be better done another way.
0:10:19 > 0:10:25So we are going to just stay here for a little while and see which is the best way to do it.
0:10:25 > 0:10:29The first decision might well be the wrong one, so we'll give it a bit of time.
0:10:29 > 0:10:33- But it's definitely got to be done. - Yes, we need to do something.
0:10:33 > 0:10:38Very sensible to wait. I often say to people, don't make any rash decisions,
0:10:38 > 0:10:41live with it for a while, the house will tell you what you need to do.
0:10:41 > 0:10:46'Good to know they're being a little bit less impulsive now.
0:10:46 > 0:10:49'Once the work's complete, Gwen and Arthur will split their time
0:10:49 > 0:10:52'between the cottage and their main home in Cheshire.
0:10:52 > 0:10:55'They'd better get a move on with the restoration,
0:10:55 > 0:10:58'as the grandchildren will be dying to visit,
0:10:58 > 0:11:01'especially when they realise there are horses next door.'
0:11:02 > 0:11:05We're going to try and keep it as traditional as we can.
0:11:05 > 0:11:11One thing we'll look towards is moving the bathroom, which is downstairs, upstairs.
0:11:11 > 0:11:15In between the two bedrooms, there's an alcove.
0:11:15 > 0:11:20We thought, if we knock that through, we could get a jack-and-jill bathroom there.
0:11:20 > 0:11:27'It might be a tight squeeze, but fitting a jack-and-jill shared en suite between the two bedrooms
0:11:27 > 0:11:31'sounds like a good plan, though it could be costly.'
0:11:31 > 0:11:35- Give me an idea of how much you're going to spend sorting it out. - Not a lot.
0:11:35 > 0:11:37THEY LAUGH
0:11:37 > 0:11:42We've set ourselves... We're going to try for £10,000
0:11:42 > 0:11:45with another £5,000 as a contingency.
0:11:45 > 0:11:49A lot depends on what we find and how much professional help we'll need to get.
0:11:52 > 0:11:55'Before retiring, Arthur worked in construction
0:11:55 > 0:11:58'and has even built his own house in the past.
0:11:58 > 0:12:02'He'll be doing most of the work himself, with some help from his two grownup sons.
0:12:02 > 0:12:06'They reckon it'll take about six months to complete the job.'
0:12:07 > 0:12:10And we've got a nice feel about this, haven't we?
0:12:10 > 0:12:13And can't wait to get stuck in and do it.
0:12:13 > 0:12:15So, all in all, you don't have any regrets.
0:12:15 > 0:12:18- No.- No.
0:12:18 > 0:12:23- No.- From the initial shock, it's turned out quite well.- It has.
0:12:23 > 0:12:27Great! Well, I'm delighted for you, anyway. Glad you found it and you like it.
0:12:27 > 0:12:33- Thank you.- Good luck with it all. - Thank you.- And I look forward to seeing how you get on.- Thank you.
0:12:33 > 0:12:39Well, Gwen and Arthur not exactly following the preferred route when it comes to buying property.
0:12:39 > 0:12:43It's normally a prerequisite that you at least know where it is,
0:12:43 > 0:12:45never mind having not visited it.
0:12:45 > 0:12:48It could've gone completely disastrously wrong.
0:12:48 > 0:12:52They hadn't even read the legal pack, and with shared access, that is so important.
0:12:52 > 0:12:55As it is, hopefully they have got away with it,
0:12:55 > 0:12:58but they've still got a lot to discover.
0:12:58 > 0:13:01They don't know about the damp and all sorts of things.
0:13:01 > 0:13:04You can find out how they get on later in the show.
0:13:10 > 0:13:13'We're in Cheshunt in Hertfordshire.
0:13:13 > 0:13:16'Talk about well-connected. This place is a commuter's paradise.
0:13:16 > 0:13:22'Just 14 miles from London, it seems everyone's in their car and on the move here.'
0:13:24 > 0:13:27Today's lot isn't a house!
0:13:27 > 0:13:33I'm here on this busy main road to check out an office that's recently been to auction.
0:13:33 > 0:13:39It's a detached single-storey office building and it had a guide price of £70,000,
0:13:39 > 0:13:43so it's time for me to get to work and check this place out.
0:13:44 > 0:13:48'This dinky little building looks in pretty good condition from the outside
0:13:48 > 0:13:53'and the off-street parking creates some distance from the busy A-road.'
0:13:53 > 0:13:56So, let's take a little look around.
0:13:56 > 0:13:59There you go. I've done it.
0:13:59 > 0:14:05There's a separate room out the back, a toilet and a kitchen. And you've got this large room here.
0:14:05 > 0:14:09The property measures 300 square foot in total
0:14:09 > 0:14:15so, as an office space, it's perfectly well presented, it doesn't need much doing to it.
0:14:15 > 0:14:20It's all clean and tidy and it has got that fairly new feel to it.
0:14:20 > 0:14:22But is there more to this place than this?
0:14:25 > 0:14:27'So far, so business-like.
0:14:27 > 0:14:34'I can just imagine some budding Alan Sugar entrepreneur planning work domination within these walls.'
0:14:36 > 0:14:39But what if you didn't want to run a business?
0:14:39 > 0:14:42For those of you who like to speculate to accumulate,
0:14:42 > 0:14:48this might be a likely spot to apply for change of use for the building to become residential.
0:14:48 > 0:14:52Now, at the moment, it's a bit on the small side for a house,
0:14:52 > 0:14:55but what if you were to apply for planning permission to extend this
0:14:55 > 0:15:00and therefore make the most of this plot? If you don't mind the busy A10 on your doorstep, that it.
0:15:00 > 0:15:03I'm going to take a look at the garden and see if it's possible.
0:15:05 > 0:15:09Yes, out here at the rear, there is 65 foot of garden,
0:15:09 > 0:15:15which would be enough to extend or rebuild a bungalow using the current footprint as a start
0:15:15 > 0:15:17and still have some left over for the garden.
0:15:17 > 0:15:22It currently has A2 business use, which means it was a professional office before,
0:15:22 > 0:15:25and so would need change of use to residential status.
0:15:25 > 0:15:28However, I think, looking at the rest of the area,
0:15:28 > 0:15:34there are enough semis and terraces to argue that it is mainly residential around here.
0:15:34 > 0:15:37If permission was granted to have a bigger dwelling on this site,
0:15:37 > 0:15:41it would make this so much more attractive in terms of investment.
0:15:41 > 0:15:44But me, I'd have to wear those earplugs.
0:15:44 > 0:15:48# So come on, feel the noise
0:15:48 > 0:15:53'There's no denying the sound of that traffic. I'd say this property's one for an investor
0:15:53 > 0:15:58'rather than a first-time buyer. But there may be life in this old office yet
0:15:58 > 0:16:03'if the application to change its use from business to residential succeeds.
0:16:05 > 0:16:09'To get to the bottom of this property conundrum,
0:16:09 > 0:16:13'I've asked a local estate agent about the office's potential.'
0:16:13 > 0:16:19It's been in an architect's drawing office for the last 30-odd years.
0:16:19 > 0:16:22It's not viable as a commercial opportunity
0:16:22 > 0:16:27and therefore it needs to go to residential, and that will depend on the local planning authority.
0:16:27 > 0:16:33The current value is probably only in the region of £40,000, perhaps £50,000.
0:16:33 > 0:16:37With permission to convert it to residential,
0:16:37 > 0:16:42I would say that as a plot, it's worth £120,000, in that region.
0:16:42 > 0:16:47'So, there's definitely money to be made here if you know what you're doing.
0:16:47 > 0:16:51I think, if you did a simple single-storey rear extension on this,
0:16:51 > 0:16:55the potential value would be in the region of £215,000.
0:16:55 > 0:16:58'And for a investor looking to become a landlord?'
0:16:58 > 0:17:05If this was extended, I'd suggest a rental value would be in the region of £1,000 per calendar month.
0:17:06 > 0:17:09So, it's a bit of a 50/50 with this one.
0:17:09 > 0:17:14On one hand, I think the current building is tiny and it only comes with business use,
0:17:14 > 0:17:17so it's got limited potential as it stands.
0:17:17 > 0:17:20But on the other hand, it's a decent size plot,
0:17:20 > 0:17:26and if you could get planning permission and change of use to build a bungalow on this site,
0:17:26 > 0:17:29then you could have a family home.
0:17:29 > 0:17:33But maybe, just maybe, that traffic noise would begin to grate.
0:17:33 > 0:17:37But that's all speculation. We need to find out what somebody's got in store for this place.
0:17:37 > 0:17:42Let's see who bought it and what they want to do with it when it went to auction.
0:17:44 > 0:17:48Nice office. You've got car parking in the front.
0:17:48 > 0:17:53Highly visible location. You've got potential to do things with this.
0:17:53 > 0:17:5650,000 anywhere? 50.
0:17:56 > 0:17:5850,000. 55.
0:17:58 > 0:18:0260. 60. 65.
0:18:02 > 0:18:05Back to you. 70. 80.
0:18:05 > 0:18:0785.
0:18:07 > 0:18:1090.
0:18:10 > 0:18:1286?
0:18:13 > 0:18:15Yeah? 87.
0:18:15 > 0:18:1788?
0:18:18 > 0:18:2389? 89, well done. It's a good lot, I've seen it. 89. 90?
0:18:23 > 0:18:2590. 91?
0:18:26 > 0:18:2992. 93.
0:18:29 > 0:18:34No? Have a think. If not, £92,000.
0:18:34 > 0:18:36First time. 93.
0:18:36 > 0:18:3894, sir?
0:18:38 > 0:18:42Sorry. 94 between you. 94.
0:18:42 > 0:18:4795. 95. 96.
0:18:47 > 0:18:5197. 98. 99.
0:18:52 > 0:18:5598 with you. First time.
0:18:55 > 0:18:58Second time. Third and last time, if you're all done.
0:18:58 > 0:19:01Sold, 98,000.
0:19:04 > 0:19:06'Aram is the office's new owner.
0:19:06 > 0:19:10'Originally from Armenia, he's been in the UK for 15 years.
0:19:10 > 0:19:14'Until recently, he was the manager of a textiles store,
0:19:14 > 0:19:17'but now wants to make his career as a property developer.'
0:19:19 > 0:19:24- Aram, congratulations.- Thank you. - You've bought yourself an office at the auctions.
0:19:24 > 0:19:29- Thank you very much, yes. - How much research did you do into buying this?
0:19:29 > 0:19:32Er, to be honest, not a lot.
0:19:32 > 0:19:36I checked on the internet the night before and this came up
0:19:36 > 0:19:39and I had only 12 hours before the auction,
0:19:39 > 0:19:45so I came down first thing in the morning, had a look around,
0:19:45 > 0:19:48and I liked what I saw and I thought, "Yeah" and I went for it.
0:19:48 > 0:19:53So, come on, talk to me. What did you like about it and what potential can you see?
0:19:53 > 0:19:56Well, it's detached, in a very good condition,
0:19:56 > 0:20:00and I think there is potential to extend it at the back of the property,
0:20:00 > 0:20:06so to convert into maybe a two-bedroom house or bungalow.
0:20:06 > 0:20:12Forgive me, are you missing something? You did notice the big, noisy A10 out the front, surely?
0:20:12 > 0:20:17Yeah, I did, but if you look around, there are so many other properties right on the A10,
0:20:17 > 0:20:20so I don't think it's a major problem round here.
0:20:21 > 0:20:24'Aram's got a good point. Plenty of people do live along this road.
0:20:24 > 0:20:27'It is an excellent base for commuting,
0:20:27 > 0:20:32'but it all rests on getting planning permission and changing the use to residential.'
0:20:34 > 0:20:39Just before I went to the auction, I spoke to the council on the phone
0:20:39 > 0:20:42and they said they would be happy.
0:20:42 > 0:20:46As soon as I bought the place, I spoke to them in person,
0:20:46 > 0:20:51and they confirmed it should be no problem for the application to go through,
0:20:51 > 0:20:55- so, fingers crossed, it will go through.- What would your plan B be?
0:20:55 > 0:21:01Well, the plan B is maybe rent it as an office.
0:21:01 > 0:21:06But I don't really want to think about plan B, because it should be plan A all the way.
0:21:06 > 0:21:10- I don't see no problems. - OK, it's plan A all the way!
0:21:13 > 0:21:15'Aram's so confident he'll get planning permission
0:21:15 > 0:21:19'that he's already drawn up plans for his bungalow.'
0:21:19 > 0:21:26- It's quite interesting seeing the plans, because the bedroom is going to be here.- Yes.
0:21:26 > 0:21:29Overlooking the road and all the noise.
0:21:29 > 0:21:32Do you think that is an ideal place for a bedroom?
0:21:32 > 0:21:34Er, ideally no,
0:21:34 > 0:21:40but with some work, with some noise-reduction insulation, I think it should be no problem.
0:21:40 > 0:21:44'Sounds like Aram's not going to let anything get in his way.
0:21:44 > 0:21:50'He's got a budget of £40,000 to do the job and is convinced it's going to be a breeze.'
0:21:52 > 0:21:56What sort of building experience have you got?
0:21:56 > 0:21:59Very limited, to be honest. But I've got a few good friends
0:21:59 > 0:22:04and I think I'll see it through. I don't think there'll be any problems.
0:22:04 > 0:22:09- Who's actually going to build it? - I haven't decided yet.
0:22:09 > 0:22:12I might just do it myself with my friends.
0:22:12 > 0:22:18- But you've just told me you don't have much building experience. - I don't, but I will learn.
0:22:18 > 0:22:23Nothing scares me. I've got a young family, a little daughter, only one year old,
0:22:23 > 0:22:26so I have to try my hardest to make it work.
0:22:26 > 0:22:31So, Aram, do you see yourself moving into this building? Are you attached to it already?
0:22:31 > 0:22:34To be honest, yes.
0:22:34 > 0:22:38The first time I saw the missus, she wasn't happy about it.
0:22:38 > 0:22:42She looked around and after five minutes, she changed her tone.
0:22:42 > 0:22:46And after ten, she was ready to move in.
0:22:46 > 0:22:49Did you not think about asking the missus if she'd like to live here?
0:22:49 > 0:22:57Er, I did, but I made a decision as the man of the house
0:22:57 > 0:23:00and that's how it's going to be.
0:23:00 > 0:23:06So you have taken a gamble on this, cos if the plans don't come through, you'll have to rent it out.
0:23:06 > 0:23:11It is a gamble, of course, but fingers crossed, everything will be OK.
0:23:11 > 0:23:15And it all happened in a matter of 12 hours. You saw it, you bought it, you've got to go for it now.
0:23:15 > 0:23:20Well, sometimes you make your best decisions in impulse. Sometimes this happens.
0:23:20 > 0:23:24And most of the time, I do get it right, so let's hope this is one of them.
0:23:24 > 0:23:31- Aram, good luck with this project. It's been great meeting you. There's your plans.- Thank you.
0:23:31 > 0:23:34So, Aram has two plans for this place.
0:23:34 > 0:23:38I really hope he doesn't have to resort to plan B, renting it out as an office,
0:23:38 > 0:23:43when the alternative might be for him and his wife to have a home on this site.
0:23:43 > 0:23:46Will his new foray into property developing work out?
0:23:46 > 0:23:50You can find out how he gets on later in the programme.
0:23:51 > 0:23:57'Coming up, the front of this Plymouth terrace might look OK, but it's a different story at the back.'
0:23:57 > 0:24:00The rear of the property feels like it's gone horribly wrong.
0:24:00 > 0:24:06'It's been non-stop graft in Cheshunt, but is there an end in sight?'
0:24:06 > 0:24:11It's been at least 16, 17 hours a day for the past eight weeks.
0:24:12 > 0:24:16'And the property experts are blown away by the renovations in Cornwall.'
0:24:16 > 0:24:21Rarely do I come into something that I've sold previously and get such a "wow!"
0:24:23 > 0:24:28# It's got to be-ee-ee-ee-ee-ee-ee
0:24:28 > 0:24:31# Per-er-er-er-er-erfect
0:24:31 > 0:24:36'We're back to catch up with Arthur and Gwen in Cornwall now.
0:24:36 > 0:24:40'They bought this picture-perfect cottage at auction for £100,000,
0:24:40 > 0:24:44'but broke just about every rule doing it.'
0:24:44 > 0:24:48We had two sleepless nights when we bought it.
0:24:48 > 0:24:53- Why?- We were worried to death cos it wasn't what we thought, we hadn't seen it or anything.
0:24:53 > 0:24:59Obviously, we hadn't followed the usual pattern of making sure you view it, your advice, and others',
0:24:59 > 0:25:02look at the legal pack, which we hadn't done, either.
0:25:04 > 0:25:09'In fact, when they bought it, they didn't even know where the cottage was.
0:25:09 > 0:25:15'I'm sure you'll agree, that was a risk, especially as it shares access with the adjoining cottage.
0:25:15 > 0:25:19'Perhaps not quite as perfect as they'd first imagined.'
0:25:21 > 0:25:24'Inside, the place needed total renovation.
0:25:24 > 0:25:27'They thought it would take six months to do the work,
0:25:27 > 0:25:30'but it's actually 14 months since we last saw them.
0:25:31 > 0:25:36'I think there's a story to tell here. Let's see what it looks like now.
0:25:48 > 0:25:53'The cottage is now picture-perfect inside, too.'
0:25:55 > 0:25:59This room is completely different. It's been transformed.
0:25:59 > 0:26:03Originally, there was a Rayburn in the fire opening there
0:26:03 > 0:26:05and the alcove was completely built in.
0:26:05 > 0:26:08The Rayburn has been removed, along with the hearth.
0:26:08 > 0:26:12And on this side, there was a wall running right the way through here
0:26:12 > 0:26:15and a doorway here into the front door.
0:26:15 > 0:26:17It's opened up enormously the space in here
0:26:17 > 0:26:20and we're really, really pleased with it.
0:26:30 > 0:26:35'The transformation continues in the kitchen and downstairs bathroom,
0:26:35 > 0:26:39'where they've added their own personal stamp with some feature wallpaper.'
0:26:39 > 0:26:43We picked this, which I think is lovely wallpaper.
0:26:43 > 0:26:46We just liked it, both of us.
0:26:46 > 0:26:52It probably wouldn't suit everybody, but we love it, so...that's it, it's us.
0:26:53 > 0:27:00'It's all smiles now, but the cottage needed a lot more work than Arthur and Gwen could have dreamt.
0:27:00 > 0:27:04'The house was riddled with damp in the wood and stonework.
0:27:04 > 0:27:07'In short, it's been a nightmare.'
0:27:08 > 0:27:13We didn't anticipate the amount of work that we eventually had to do.
0:27:13 > 0:27:16Structurally, we've had to do quite a lot.
0:27:16 > 0:27:21- Every wall's been down. - All the internal walls,
0:27:21 > 0:27:25at some point, were out and have been rebuilt.
0:27:27 > 0:27:32At one point, we finished up with a shell, just four walls,
0:27:32 > 0:27:38a staircase running up the middle and nothing else between here and the roof slate.
0:27:38 > 0:27:41But... And then we started putting it back together.
0:27:42 > 0:27:46'And put it back together they certainly have.
0:27:46 > 0:27:50'Ceilings, floorboards and walls have all been removed and replaced.
0:27:50 > 0:27:54'Roof timbers have been treated, a damp course injected,
0:27:54 > 0:27:58'internal stonework repaired, and it's had a complete rewire.
0:27:58 > 0:28:03'The biggest transformation is in the master bedroom, where they've managed to squeeze in
0:28:03 > 0:28:08'an en suite shower room into a space just big enough for a cupboard.
0:28:08 > 0:28:15'It all looks like an oasis of calm now, but getting to this stage has been quite an emotional journey.'
0:28:15 > 0:28:19- It's only in the last couple of days, really...- That it's felt like a home.
0:28:19 > 0:28:24Yeah, it's starting to look like a home again. Actually, we both needed lifting from time to time.
0:28:24 > 0:28:27When I've been down, he's been the other way.
0:28:27 > 0:28:33- We've been down at different points, so...- And I've had a few cries.- Yeah.
0:28:33 > 0:28:40And I've tried to keep Gwen out of the building when there's been certain things going on.
0:28:40 > 0:28:43But, generally, we've worked well together.
0:28:45 > 0:28:50'The reason they've been working so hard is so that Gwen can be close to her grandchildren,
0:28:50 > 0:28:52'Madeline and George.'
0:28:52 > 0:28:56We don't have to drive so far and she can come down to us easily
0:28:56 > 0:28:58and we can go over to her easily.
0:28:58 > 0:29:02I love the garden because I love running around
0:29:02 > 0:29:07and I love it because I like walking about in her house.
0:29:07 > 0:29:10'Outside, the list goes on.
0:29:10 > 0:29:18'They've repainted the exterior walls, installed new windows, doors, guttering and downpipes,
0:29:18 > 0:29:21'replaced the chimney stack and worked on the garden.
0:29:21 > 0:29:27'But the hard graft's not over yet. They haven't even started the first job on their original list.'
0:29:27 > 0:29:32One of the first jobs we thought we'd do was to arrange better parking,
0:29:32 > 0:29:36knock a section of the wall down, form a driveway and a parking area.
0:29:36 > 0:29:41But that's had to go because the cost of that has been sunk inside the property.
0:29:43 > 0:29:47'Arthur and Gwen originally had a budget of between £10,000 and £15,000,
0:29:47 > 0:29:53'but with all those unforeseen expenses, how much have they actually spent?'
0:29:53 > 0:29:58We've certainly blow it, anyway. We haven't done the final analysis yet,
0:29:58 > 0:30:02- but we've probably spent double what we originally said.- Yeah.
0:30:02 > 0:30:08- Anyway, we're there now, aren't we? - Yeah. Well, almost.
0:30:08 > 0:30:11'Well, it's time for that moment of truth.
0:30:11 > 0:30:14'Has Gwen and Arthur's hard work paid off?
0:30:14 > 0:30:19'We asked two local property experts to give us the figures.'
0:30:19 > 0:30:22Rarely do I come into something that I've sold previously
0:30:22 > 0:30:26and get such a "wow" feeling from it.
0:30:26 > 0:30:28I think it's a different house.
0:30:28 > 0:30:35Upstairs, somehow, they've managed to get a shower room into a space
0:30:35 > 0:30:38that you'd hardly put a wardrobe in. It's brilliant engineering.
0:30:38 > 0:30:41It's a super cottage.
0:30:41 > 0:30:43When I saw the bedroom first time around,
0:30:43 > 0:30:47I thought, "OK, you might just get a double bed in it and that's it"
0:30:47 > 0:30:52but to have put an en suite in the corner, as they have, it's a work of genius.
0:30:54 > 0:31:01'Wow. Praise indeed. Let's hope those glowing reviews will be reflected in the valuations.'
0:31:01 > 0:31:05I'd put this house on the market at £159,950
0:31:05 > 0:31:10and hope to get somewhere over 150.
0:31:10 > 0:31:14I would recommend we put this property on the market at £150,000.
0:31:16 > 0:31:21'So, with a purchase price of £100,000, even though they doubled their original budget,
0:31:21 > 0:31:27'Arthur and Gwen could be sitting on a potential pre-tax profit of around £20,000.
0:31:29 > 0:31:33- It's never been about the money or making a profit, has it?- No, never.
0:31:33 > 0:31:38It's just what we want, what we like and for us to live in.
0:31:39 > 0:31:45But it's nice, anyway, just to know that you've not lost money, really.
0:31:45 > 0:31:50# It's got to be-ee-ee-ee-ee-ee-ee
0:31:50 > 0:31:52# Perfect
0:31:52 > 0:31:56'If they chose to, Arthur and Gwen could even rent their cottage out
0:31:56 > 0:31:59'for around £600 per calendar month.
0:31:59 > 0:32:02'But for them, the effort was all about creating a second home
0:32:02 > 0:32:05'where they could relax and enjoy time with their grandchildren.
0:32:05 > 0:32:09'Now that it's almost complete, how do they feel about this cottage
0:32:09 > 0:32:12'that they rushed into buying before they'd even seen it?'
0:32:14 > 0:32:18Now it's actually come to this, we have enjoyed it,
0:32:18 > 0:32:21and you think, "We'll never do it again" when you get a bad day,
0:32:21 > 0:32:26- but now...- I think "Never again!" THEY LAUGH
0:32:26 > 0:32:30# Per-er-er-er-er-erfect
0:32:35 > 0:32:40'For the next property that went under the hammer, I'm in Plymouth
0:32:40 > 0:32:43'hoping to see a hot property sailing into view.'
0:32:43 > 0:32:49Well, just a few miles outside the city centre is the residential area known as Peverell.
0:32:49 > 0:32:54Very popular with families, it's got great amenities, good schools and shops
0:32:54 > 0:32:58and its own park. This bit's actually known as Pounds Park.
0:32:58 > 0:33:01On a beautiful day like today, it's a great place to be.
0:33:01 > 0:33:08Big question is, will the property that was up for auction make our purchaser pounds and pounds?
0:33:09 > 0:33:13'These 22 acres are part of Plymouth's Central Park,
0:33:13 > 0:33:17'perhaps not quite as impressive as New York's version,
0:33:17 > 0:33:21'but it's known as the green lung of Plymouth and is utterly delightful.'
0:33:21 > 0:33:25The catalogue states that the property I'm here to see is in popular Peverell,
0:33:25 > 0:33:29but that seems to be a bone of contention with people I've spoken to,
0:33:29 > 0:33:35because we are just on the fringes of Pennycross, to the north, that is.
0:33:35 > 0:33:39But this is it, anyway. Two-bedroom mid-terrace, had a guide price of £80,000.
0:33:39 > 0:33:43Supposedly in need of "refreshment" whatever that might mean. Let's have a look.
0:33:45 > 0:33:49'From the outside, the house doesn't look in too terrible a state.
0:33:49 > 0:33:55'The rendering looks OK and there's double glazing. Round the back, there's off-street parking,
0:33:55 > 0:34:00'which will save you battling with your neighbours for a spot in Peverell, or is it Pennycross?'
0:34:02 > 0:34:05OK, wherever it's located, what have we got?
0:34:05 > 0:34:08A nice little entrance vestibule there, corridor here,
0:34:08 > 0:34:13then you've got a lounge there, that's your main front sitting room area.
0:34:13 > 0:34:17Good size space for a little terrace. Stairs up to the bedrooms.
0:34:17 > 0:34:20Then it gets a bit strange, because look at this little corridor.
0:34:20 > 0:34:24And the whole rear of the property has gone horribly wrong.
0:34:24 > 0:34:28Through into a kitchen. Again, it's not a bad size space,
0:34:28 > 0:34:32but clearly everything in here wants replacing, including that boiler.
0:34:32 > 0:34:37Windows are double-glazed with a little bit of a view out into the rear courtyard area.
0:34:37 > 0:34:40But I'm thinking things need to be done here.
0:34:41 > 0:34:44'Yes, this calls for refreshment all right,
0:34:44 > 0:34:48'but there are some fantastic original features which I hope get retained.
0:34:48 > 0:34:51'I don't think this property has been inhabited for years.'
0:34:51 > 0:34:57# When will I be loved?
0:34:58 > 0:35:03'I'm convinced the layout at the rear of the house could be made much more efficient.
0:35:03 > 0:35:05'And the problems continue the further you go.'
0:35:08 > 0:35:12This is really, really odd. It gets worse and worse.
0:35:12 > 0:35:16As you come right to the rear of the property here, you find the loo and bathroom,
0:35:16 > 0:35:19the only ones in the property. This doesn't work at all.
0:35:19 > 0:35:24So what can you do? Well, until relatively recently, you needed to have a lobby
0:35:24 > 0:35:29in between the kitchen and the bathroom. Well, that no longer is the case in building regulations,
0:35:29 > 0:35:36so why not take down this big, useless wall here to create one large bathroom area here?
0:35:36 > 0:35:42You'd have a door there which goes through to the kitchen, change the back door onto the other wall
0:35:42 > 0:35:46so you have it on the wall at the rear which goes into the garden from the kitchen,
0:35:46 > 0:35:50makes a much better use of this space. That's what you've got to do.
0:35:50 > 0:35:55'Well, considering that you won't actually be changing the location of the bathroom,
0:35:55 > 0:36:00'it's quite a lot of jiggery-pokery. But it would get rid of all those useless corridors
0:36:00 > 0:36:03'and allow the kitchen to be opened up.'
0:36:06 > 0:36:12'The catalogue says two bedrooms, but I wonder what potential there is to change the layout.'
0:36:12 > 0:36:16That's nice. I really like windows on stairways. Gives a real feeling of light,
0:36:16 > 0:36:19not to mention that fact that it's a lot safer.
0:36:19 > 0:36:25You've got this little landing area here, your first bedroom there, it's all pretty tired and dated,
0:36:25 > 0:36:28but that isn't too much of an issue. Through to your second bedroom.
0:36:28 > 0:36:34This is a really nice size and it's got two separate windows.
0:36:34 > 0:36:37Why is that important? Well, I think it opens up some options.
0:36:37 > 0:36:43For a start, I don't particularly like the toilet downstairs and some people are a bit fussy about that,
0:36:43 > 0:36:48so ideally, you want to bring that upstairs. So, first option, why not put an en suite in here?
0:36:48 > 0:36:51It'd have its own window, ventilation, perfect.
0:36:51 > 0:36:53If I was living here, that's what I would do.
0:36:53 > 0:37:00If I was renting this place out, then rooms are paramount, so add an extra bedroom.
0:37:00 > 0:37:02That gets you an extra £100 a month,
0:37:02 > 0:37:06wouldn't cost you much to do, stud partition in here, change the door.
0:37:06 > 0:37:11That is the option if you're going to rent the place out. There you go. Problem solved.
0:37:11 > 0:37:16'But there are others. The back bedroom has got some serious plaster damage.
0:37:16 > 0:37:21'It looks as though damp could be getting in. There are some nasty cracks on the stairs, as well.
0:37:21 > 0:37:25'Both need checking out. I asked a local expert to come and take a look
0:37:25 > 0:37:29'at the property that went to auction guided at £80,000.'
0:37:29 > 0:37:33My first impression of this one is it's a little bit tired,
0:37:33 > 0:37:35a bit rough around the edges, needs some TLC.
0:37:35 > 0:37:41I definitely would recommend turning it into a three-bedroom, split the bedroom at the front,
0:37:41 > 0:37:45and I'd be able to achieve at £5,000 to £8,000 more if it were a three-bedroom property.
0:37:45 > 0:37:49'Bearing in mind the house had an auction guide price of £80,000,
0:37:49 > 0:37:52'how much could it be worth after a full refurbishment?'
0:37:52 > 0:37:57If it were left as a two-bedroom property, I believe I'd be able to achieve £130,000.
0:37:57 > 0:38:02'What effect could an extra bedroom have on rental income?'
0:38:02 > 0:38:07If this were a two-bedroom property, I believe I could rent this one out for £575 per calendar month.
0:38:07 > 0:38:13If I were to rent it out as a three-bedroom property, I could achieve £650 per calendar month.
0:38:13 > 0:38:18'So, adding a third bedroom would increase the rental income or the sale value.
0:38:18 > 0:38:23'But, of course, any investor would have to factor in the extra impact on their budget.'
0:38:24 > 0:38:28Well, it's a house that's in need of some attention.
0:38:28 > 0:38:30Let's see who went for it at the auction.
0:38:30 > 0:38:35Two-storey, two-bedroom, mid-terrace house for refreshment/updating.
0:38:35 > 0:38:39Guide price straight in, 80,000. Don't want to start on less than 80.
0:38:39 > 0:38:42Who'll get us going. Lots of interest in 71. 80, thank you.
0:38:42 > 0:38:44At 80. At 80. At 80.
0:38:44 > 0:38:48Sir, 81. 81.
0:38:48 > 0:38:5282. 83. 84. You're in. 84.
0:38:52 > 0:38:54Three of you now. 85 where it began.
0:38:54 > 0:38:5786.
0:38:57 > 0:38:5986. 87.
0:38:59 > 0:39:0288. 89.
0:39:02 > 0:39:06And 90. 91.
0:39:06 > 0:39:1091. And a half, one of you.
0:39:10 > 0:39:1391 is sat. 91 and a half. 91 and a half.
0:39:13 > 0:39:1592. 92.
0:39:15 > 0:39:19At 92. Half. 92 and a half. 93.
0:39:19 > 0:39:22At 93. And a half.
0:39:22 > 0:39:2494. At 94.
0:39:24 > 0:39:28At 94. Half. 95.
0:39:28 > 0:39:31Half again. 95 and a half. 96.
0:39:31 > 0:39:3596 and a half. 96 and a half.
0:39:35 > 0:39:37At 96 and a half.
0:39:37 > 0:39:3996 and a half once, then.
0:39:39 > 0:39:42At 96 and a half twice.
0:39:42 > 0:39:44At 96 and a half.
0:39:44 > 0:39:46On my left it is at 96,500.
0:39:46 > 0:39:49Sir, yours. 96 and a half.
0:39:49 > 0:39:53'That final successful bid of £96,500 was made by Paul.
0:39:53 > 0:39:56'I met up with him and his partner Sarah, who's a nurse,
0:39:56 > 0:40:00'to hear about their plans to get the place back to good health.
0:40:00 > 0:40:03'This is the first house Paul's bought at auction
0:40:03 > 0:40:09'and it's the start of a totally new career for him in property development.'
0:40:09 > 0:40:14- Sarah, Paul, congratulations. - Thank you.- Well done. Tell me why you wanted to buy the house.
0:40:14 > 0:40:19Well, it's the first project for me since I've been out of work in IT
0:40:19 > 0:40:23and it seems to be quite a low-risk property, quite simple, good area for schools.
0:40:23 > 0:40:29So it's not too ambitious, something I can turn around quite quickly, make a small profit and get experience.
0:40:29 > 0:40:34- Great. So, previously, you were in IT?- Yes.- What made the jump into property developing?
0:40:34 > 0:40:38I've always dabbled in property. I've always been fascinated by property
0:40:38 > 0:40:43and I lost my job and it gave me the push I needed to get involved full-time, so here I am.
0:40:43 > 0:40:46- What about you, Sarah? What do you do?- I'm a nurse.
0:40:46 > 0:40:50- Oh, great!- And I'm here to support Paul. It's his first project
0:40:50 > 0:40:52and I've always been interested in properties myself
0:40:52 > 0:40:58and I love interior design, so it's my chance to have my say, just to help you, really.
0:40:59 > 0:41:05'Paul was a student in the town and now lives just outside Plymouth, so he knows the area pretty well.
0:41:05 > 0:41:09'He's planning to convert the house into a three-bed by dividing that front bedroom.
0:41:09 > 0:41:12'What does Sarah think will be the main challenges here?'
0:41:12 > 0:41:16I still think one of the big challenges will be the kitchen.
0:41:16 > 0:41:21Cos we've got ideas of knocking walls down and things, but it's just maximising that space.
0:41:21 > 0:41:25- But it should be nice when it's finished.- What about the bathroom?
0:41:25 > 0:41:29- Will you get rid of the corridor, knock down the wall? - Yeah. Block up the back door,
0:41:29 > 0:41:33take out the partition wall, make it a nice, big bathroom.
0:41:33 > 0:41:37Where the sink in the kitchen is, put a single door out into the courtyard.
0:41:37 > 0:41:41Any thoughts about moving the bathroom upstairs, put an en suite here?
0:41:41 > 0:41:45- Erm...- You'd lose the extra bedroom. - I hadn't really.
0:41:45 > 0:41:49Anything to do with price, I'm trying to keep the budget quite tight,
0:41:49 > 0:41:52and I've got it all costed up to round about £15,000 so far.
0:41:52 > 0:41:58- Right.- If I do something really funky and swish, it'll compensate for the fact it's downstairs.
0:41:58 > 0:42:00- Funky and swish?- Yeah.- Wow.
0:42:00 > 0:42:02- But cheap.- Cheap, funky and swish.
0:42:02 > 0:42:05- Yeah, absolutely. - What does that look like?
0:42:05 > 0:42:10Well, it can look very nice. You can get these really trendy designer basins for about £30
0:42:10 > 0:42:14- with monobloc taps for the same sort of price. - The ones that sit on the surface?
0:42:14 > 0:42:17Exactly. They look hundreds of pounds, but can cost very little.
0:42:17 > 0:42:23- They squirt water all over your trousers. - Oh, well, possibly so! Possibly so.
0:42:23 > 0:42:27'Cheap, funky, swish, but a little damp.
0:42:27 > 0:42:32'Mind you, they are going for a seaside theme with the colours and styling, so it may work.'
0:42:32 > 0:42:37# Seaside, whenever you stroll along...
0:42:37 > 0:42:41- Who's going to do the work?- I've got a builder lined up to start tomorrow.
0:42:41 > 0:42:43- Oh.- So he's going to do all the skilful stuff.
0:42:43 > 0:42:48I'm going to do the non-skilful stuff, like breaking things up, stripping wallpaper, tidying up.
0:42:48 > 0:42:53- And me.- Ripping up the carpets. And Sarah.- I've got the steamer. - Oh, there we go.
0:42:53 > 0:42:58- And I'm hoping to get my work done within a couple of weeks and leave him to it.- What's the timescale?
0:42:58 > 0:43:01- He says eight to ten weeks.- Right.
0:43:01 > 0:43:05It's the first time I've used him, gives me a good impression, but you never know.
0:43:05 > 0:43:10He does plastering, builds houses, everything. And he seems to have good references,
0:43:10 > 0:43:14- so fingers crossed, he'll do a good job.- Right. So what next?
0:43:14 > 0:43:18Cos it's a student town, big houses where you can rent out the rooms are popular
0:43:18 > 0:43:23and quite lucrative. I've got one of those already and I'm hoping to buy a second.
0:43:23 > 0:43:27So I'd like to roll the profits forward into buying a house to let out room by room,
0:43:27 > 0:43:33but also do this kind of thing and do a self-build, get a plot of land and do a small development project.
0:43:33 > 0:43:37- Well, good luck with this one.- Thank you.- I hope it's a success for you.
0:43:37 > 0:43:40# Seaside rendezvous, give us a kiss
0:43:40 > 0:43:44Well, Sarah and Paul have certainly got some good ideas for this place,
0:43:44 > 0:43:50but there's a lot of work to sort it out and I hope that Paul's hunch about the builder is correct.
0:43:50 > 0:43:58Join us later in the show to find out what funky, swish and cheap looks like. See you later.
0:44:01 > 0:44:05Doing up a property can be time-consuming and expensive.
0:44:05 > 0:44:10- So, have our new buyers stuck to their plans and their budgets? - Let's find out.
0:44:12 > 0:44:16'We're back on the road now to catch up with Aram in Cheshunt, Hertfordshire.
0:44:16 > 0:44:21'He bought this tiny office building on a busy main road for £98,000.
0:44:21 > 0:44:26'His plan was to change it into a home for himself and his young family.
0:44:26 > 0:44:30'But, surprisingly, buying it was a last-minute decision.'
0:44:32 > 0:44:36Well, sometimes you make your best decisions in impulse.
0:44:36 > 0:44:41And most of the time, I do get it right, so let's hope this is one of them.
0:44:43 > 0:44:47'The property has a long garden at the back, but Aram's master plan would be a non-starter
0:44:47 > 0:44:50'if he didn't get planning permission to extend
0:44:50 > 0:44:54'and change the office from business use to residential.
0:44:56 > 0:45:01'Aram's had nine months to put his plans into action. Let's see how he's getting on.
0:45:06 > 0:45:10'Well, it seems he must have got his planning permission.
0:45:11 > 0:45:16'And although the place isn't finished, it's not very office-like any more.'
0:45:20 > 0:45:23This was the end wall for the original building.
0:45:23 > 0:45:26We extended the house seven metres towards the garden.
0:45:26 > 0:45:29And I'm really pleased with the result.
0:45:29 > 0:45:31# Hard work
0:45:31 > 0:45:34Most people would've walked away from this little office,
0:45:34 > 0:45:39'but Aram saw the potential and came up with a plan to turn it into a two-bedroom bungalow.'
0:45:41 > 0:45:45The planning permission took a good couple of months to come through.
0:45:45 > 0:45:51Originally, we asked for nine metres extension, but we were granted only seven,
0:45:51 > 0:45:56which is still OK, a little bit smallish, but it's still OK.
0:45:56 > 0:46:00Out front, we have our main bedroom for us.
0:46:00 > 0:46:04A bit smaller one for Lily, my little daughter.
0:46:04 > 0:46:09And we've got a bathroom and a toilet over there
0:46:09 > 0:46:14and around here, we're going to have our open-plan lounge and kitchen.
0:46:14 > 0:46:19'Aram had around £40,000 to convert this into his family home.
0:46:19 > 0:46:23'The work he's taken on here has been pretty extensive.
0:46:23 > 0:46:26'Has he managed to stick to his original budget?'
0:46:27 > 0:46:35Well, we've spent, er, all-in with the fees, the work, everything,
0:46:35 > 0:46:39it comes to about £75,000 to £80,000.
0:46:39 > 0:46:43'Aram's doubled his original budget.
0:46:43 > 0:46:46'Building materials cost more than he expected
0:46:46 > 0:46:49'and there were unforeseen charges payable to the local authority
0:46:49 > 0:46:53'as part of the planning application to change the building's use.
0:46:53 > 0:46:59'Those amounted to £3,000 per bedroom. But that was just the tip of the iceberg.'
0:46:59 > 0:47:01The problem is the foundations.
0:47:01 > 0:47:05We dug up the foundation all around the perimeter
0:47:05 > 0:47:09and the last four metres were a bit soft,
0:47:09 > 0:47:14so because of that, we had to pile foundation the whole extension.
0:47:14 > 0:47:17And the piling cost quite a lot.
0:47:17 > 0:47:20'The house is right next to some undeveloped woodland,
0:47:20 > 0:47:24'so Aram had to put down deeper and stronger pile foundations
0:47:24 > 0:47:27'to make sure his new extension was secure.
0:47:27 > 0:47:30'He also had to do a lot of work on the property's drains.
0:47:30 > 0:47:35'In fact, he's been working all hours just to get the project this far.'
0:47:37 > 0:47:43It was eight start till one, two, three, four, five in the morning, it depends.
0:47:43 > 0:47:47But it's been at least 16, 17 hours a day
0:47:47 > 0:47:50for the past eight weeks.
0:47:50 > 0:47:55It's been hard work, a long road, but it's definitely worth it. It is good.
0:47:55 > 0:47:59I think it'll be a nice little house for us.
0:47:59 > 0:48:02# Don't worry
0:48:03 > 0:48:06'Thankfully for Aram, he's not had to do all the work himself,
0:48:06 > 0:48:10'as he had a lot of help from his father-in-law and family friends.
0:48:10 > 0:48:17'But he'd been living dangerously, because he did not tell his wife before he actually bought the place!
0:48:17 > 0:48:20'How does she feel now that it's starting to take shape?'
0:48:22 > 0:48:26Initially, she wasn't very keen on the whole idea.
0:48:26 > 0:48:30She couldn't see it, imagine it.
0:48:30 > 0:48:35But now she thinks it's all coming together and, yeah, she loves it.
0:48:35 > 0:48:40'Phew! That's a relief! Aram's paid £98,000 for the property
0:48:40 > 0:48:43'and spent another £80,000 converting it,
0:48:43 > 0:48:47'making a total of £178,000.
0:48:50 > 0:48:55'Has he invested wisely? Time for some expert opinion.'
0:48:55 > 0:48:57The positives really are that it's a bungalow.
0:48:57 > 0:49:01I think it's unfortunate that it is on the A10, the main road.
0:49:01 > 0:49:03But bungalows are few and far between,
0:49:03 > 0:49:05so there is always a demand for detached bungalows.
0:49:05 > 0:49:11He's done very well in doing the alterations. I'd have done certain things differently,
0:49:11 > 0:49:16but I think he's made an excellent job of what he's got here.
0:49:16 > 0:49:21'What could this former office turned family home sell for?'
0:49:21 > 0:49:27I think you could put this on the market for between £225,000 and £230,000.
0:49:27 > 0:49:34I would recommend that the owner puts this on at just under £230,000.
0:49:34 > 0:49:38Well, I think it's quite low, because just round the corner,
0:49:38 > 0:49:42there's a two-bed bungalow for 275 on the market as we speak.
0:49:42 > 0:49:47But I think, to be fair, about the 250 mark is about the right price for it.
0:49:47 > 0:49:55'The estate agent valuations could still see Aram pocket a pre-tax profit of £47,000 to £52,000,
0:49:55 > 0:49:58'minus the usual selling expenses.
0:49:58 > 0:50:03'But what if he decided to become a landlord and rent the property out instead?'
0:50:03 > 0:50:10I think this could rent out for somewhere between £850 and £950 per month.
0:50:10 > 0:50:15Between £850 and £900 per calendar month in rental terms.
0:50:15 > 0:50:18Well, that sounds quite all right,
0:50:18 > 0:50:22but it really is going to make no difference to us
0:50:22 > 0:50:26because we're going to move in and live here as a family. It's our family home.
0:50:26 > 0:50:29It feels already like a home
0:50:29 > 0:50:33and we're going to be living here as a nice family together,
0:50:33 > 0:50:36so it's going to be happy times for us.
0:50:38 > 0:50:42'Back now to Plymouth where, earlier in the programme,
0:50:42 > 0:50:46'Paul paid £96,500 for this two-bed mid-terrace.
0:50:46 > 0:50:51'Although he had some property-developing experience, it was his first purchase
0:50:51 > 0:50:56'since leaving his IT job and going full-time into property development.
0:50:56 > 0:51:00'His partner, Susan, is a nurse and she was going to look after the design.
0:51:00 > 0:51:03'Paul hoped to sell once he'd added a third bedroom
0:51:03 > 0:51:07'and rearranged the layout downstairs, but didn't see that as a problem.'
0:51:09 > 0:51:14If we do something really funky and swish, it should compensate for the fact that it's downstairs.
0:51:14 > 0:51:19You can get these trendy designer basins for about £30 with monobloc taps for the same sort of price.
0:51:19 > 0:51:21You mean the ones that sit on the surface?
0:51:21 > 0:51:25Yeah, exactly. They look hundreds of pounds, but can cost very little.
0:51:25 > 0:51:28'Well, time to see the results.
0:51:28 > 0:51:31'Three months had passed when we met Paul and Sarah back at the property
0:51:31 > 0:51:35'to see just how swish it had become.
0:51:36 > 0:51:39'Well, it's not that funky in the front reception room yet.
0:51:39 > 0:51:45'The plaster's been touched up and the room looks ready to decorate and that's about it.
0:51:45 > 0:51:48'The hallway's not too swish, either.
0:51:50 > 0:51:53'But, as promised, the rear layout has changed.
0:51:53 > 0:51:57'The corridor's gone and the bathroom's gained extra space.
0:51:57 > 0:51:59'Plus, a shower.
0:52:00 > 0:52:06'And I think I'm safe, I don't think my trousers will get soaked by that basin. Phew!
0:52:07 > 0:52:13'Yes, what an improvement it was to be able to remove that lobby between the kitchen and the bathroom
0:52:13 > 0:52:17'now that the building regulations have changed. And as Paul explains,
0:52:17 > 0:52:21'just repositioning the entrance to the kitchen also made a big difference.'
0:52:21 > 0:52:26Well, what we've done with the kitchen is to reduce this wall here back to the position it's in now.
0:52:26 > 0:52:29It was originally round about there.
0:52:29 > 0:52:34So it creates a lot more floor space to open up the kitchen for tables and chairs.
0:52:34 > 0:52:40There was a side door off the bathroom. That's been blocked up. The back door's been installed there.
0:52:40 > 0:52:45There will be a glass panel in the lower half of the door to produce more light into the kitchen
0:52:45 > 0:52:48and just create a bigger sense of space and make it nice and airy.
0:52:50 > 0:52:53'So, the layout downstairs is sorted.
0:52:53 > 0:52:58'But what about upstairs, where they'd hoped to add a third bedroom? How did that go?'
0:52:58 > 0:53:03Well, we had to have some careful thought about it, because there was one big room at the front
0:53:03 > 0:53:09and there's this room back here, so we were trying to plan as best we could to get three rooms out of it.
0:53:09 > 0:53:14There was a doorway here. We moved it to the left so we could get a single bed in,
0:53:14 > 0:53:19otherwise it would've been an awkward layout inside. This room,
0:53:19 > 0:53:25the doorway originally was here and to make a third room, we had to move that wall back slightly,
0:53:25 > 0:53:28so this room is slightly smaller than it was originally.
0:53:28 > 0:53:33'So, the back bedroom's been reduced in size and its door moved.
0:53:33 > 0:53:37'All this to allow a new door to be made for one of the two rooms,
0:53:37 > 0:53:40'which have been created from the large original front room.
0:53:40 > 0:53:44'So it looks like Paul's gut feeling was right when he picked his builder.
0:53:46 > 0:53:50'From the back bedroom, you get a great view of the changes they made at the rear.'
0:53:51 > 0:53:56The back garden, originally, the back wall had an up-and-over garage door
0:53:56 > 0:53:59with a corrugated plastic roof forming a car port.
0:53:59 > 0:54:03So we've removed the garage door, put some decking down,
0:54:03 > 0:54:07renewed the fence panels and the only thing we've got to do now is paint the gates
0:54:07 > 0:54:10and put some gravel down and it should look quite pretty.
0:54:11 > 0:54:14'I like the look they've created out here.
0:54:14 > 0:54:20'How much did Paul have to spend on top of the £96,500 he paid at the auction?'
0:54:21 > 0:54:25I wanted to spend about £15,000.
0:54:25 > 0:54:27I've spent probably about 18.
0:54:29 > 0:54:32'Is the intention still to sell?'
0:54:32 > 0:54:34Yeah, still as planned originally,
0:54:34 > 0:54:39we thought we'd buy it, do it up and sell it on and that's what we're hoping to do.
0:54:41 > 0:54:46'Let's hear what two local property experts think of it.'
0:54:46 > 0:54:50It's a lovely family home, it's got lots of nice features, it's nice and clean and tidy,
0:54:50 > 0:54:54it's got three bedrooms, a nicely fitted kitchen and bathroom
0:54:54 > 0:54:58and an enclosed courtyard, so I think it's a great buy for someone.
0:54:58 > 0:55:01The bathroom is of a high specification
0:55:01 > 0:55:05and the kitchen is a good size and nicely done, as well.
0:55:05 > 0:55:09Nice neutral decor throughout and very well presented.
0:55:09 > 0:55:13'Once the property has been finished off, how much rental income could it generate?'
0:55:13 > 0:55:19Rental per calendar month, I'd say in the region of £650.
0:55:19 > 0:55:23If I were to rent this property out, I'd rent it out for £575 per calendar month.
0:55:23 > 0:55:26'What does Paul think of those valuations?'
0:55:26 > 0:55:31Yeah, I think £600 is realistic, possibly £650 would be a good figure.
0:55:31 > 0:55:34'Remember, Paul has always planned to sell.
0:55:34 > 0:55:39'He paid £96,500 at the auction and his budget has stretched to £18,000,
0:55:39 > 0:55:45'making a total of about £114,500. How much is the house now worth?'
0:55:45 > 0:55:49If I was to put this property on the market, I'd put it on for £140,000.
0:55:49 > 0:55:52I'd look to market this property at £135,000.
0:55:52 > 0:55:59'That range of valuations, between £135,000 and £140,000,
0:55:59 > 0:56:03'would produce a gross profit, before the usual selling expenses,
0:56:03 > 0:56:10'of £20,500 to £25,500. What's the verdict on that, Paul?'
0:56:10 > 0:56:13If I get 140, I'll be very pleased. 135, I'll be disappointed.
0:56:13 > 0:56:17If I got halfway in between, I'd probably be reasonably happy.
0:56:19 > 0:56:23'Well, along with Sarah's design input and her hard graft,
0:56:23 > 0:56:29'Paul's first full-time developing project looks to be a success providing he finds a buyer.
0:56:29 > 0:56:33'So, what will this development double act take from the project?'
0:56:33 > 0:56:37I think it's been quite an exciting project.
0:56:37 > 0:56:41It hasn't really been stressful. It's been interesting and it's quite a good learning curve.
0:56:41 > 0:56:46No major glitches, it's all gone pretty smoothly, we've worked really well together.
0:56:46 > 0:56:50That's part of the pleasure. It's not only about money, it's enjoying what you do.
0:56:50 > 0:56:53We have to sell it, get the money for the next one.
0:56:54 > 0:56:58That's it for now. We'll have more intriguing properties for you next time.
0:56:58 > 0:57:02- Make sure you join us then for more Homes Under The Hammer. - Goodbye.- Goodbye.
0:57:05 > 0:57:09Subtitles by Red Bee Media Ltd
0:57:09 > 0:57:13E-mail subtitling@bbc.co.uk