0:00:02 > 0:00:04Buying property is not always as easy as it looks.
0:00:04 > 0:00:08But there is one way you can skip one dreaded part of the process
0:00:08 > 0:00:10of that awful chain,
0:00:10 > 0:00:13and that's by buying your property at auction.
0:00:38 > 0:00:41There are allsorts of properties up for auction these days.
0:00:41 > 0:00:45There certainly are, and it's the variety that keeps us interested.
0:00:45 > 0:00:48Here are the lots that were up for grabs on today's show.
0:00:49 > 0:00:51In Kent, this plot with planning permission
0:00:51 > 0:00:54has me thinking big hair and shoulder pads.
0:00:54 > 0:00:58Look at that! This is straight out of Dallas!
0:00:59 > 0:01:03I have to look beyond the choice of colour scheme in this south London mid-terrace.
0:01:03 > 0:01:08Although it's painted quite a happy colour, it's far from happy!
0:01:09 > 0:01:10And in Gateshead,
0:01:10 > 0:01:15this enormous kitchen blows the options for this two-bed bungalow wide open.
0:01:15 > 0:01:19It turns this bungalow on its head, as far as I'm concerned.
0:01:20 > 0:01:22All these properties have been sold at auction.
0:01:22 > 0:01:25We'll find out who bought them and what they paid
0:01:25 > 0:01:28- when they went under the hammer. - Sold. 262.
0:01:31 > 0:01:35I've come to the village of Longfield in north Kent,
0:01:35 > 0:01:39just ten minutes from train links to the capital and the Kent coast.
0:01:39 > 0:01:45It's a very desirable place to live, with some very desirable houses to live in.
0:01:46 > 0:01:52Up for auction was a plot of land with planning permission for the building of a substantial house.
0:01:52 > 0:01:55But plots like this don't come up very often around here,
0:01:55 > 0:01:59and when houses can sell for up to three-quarters of a million pounds around here,
0:01:59 > 0:02:03the guide price of £185 to £195,000
0:02:03 > 0:02:05makes it sound like a very interesting opportunity.
0:02:05 > 0:02:07# Wild thing
0:02:09 > 0:02:12# You make my heart sing
0:02:14 > 0:02:17# You make everything groovy #
0:02:18 > 0:02:23So this is the plot. It's about 30 metres by 40 metres.
0:02:23 > 0:02:26It's nice and level, which is a good start.
0:02:26 > 0:02:29Backing onto open fields, again, which is lovely.
0:02:29 > 0:02:31You've got an access there, which is good news.
0:02:31 > 0:02:36You probably have electricity, water and sewerage within striking distance
0:02:36 > 0:02:38because you are surrounded by houses.
0:02:38 > 0:02:42So as building plots go, it's ticking all the boxes.
0:02:43 > 0:02:46# Wild thing, I think I love you
0:02:47 > 0:02:50# But I wanna know for sure #
0:02:52 > 0:02:54What makes this plot really exciting
0:02:54 > 0:02:59is that it has planning permission for the building of, what I have to say,
0:02:59 > 0:03:02is a fairly stonkingly spectacular property!
0:03:02 > 0:03:06Look at that! Oh, my goodness! This is straight out of Dallas.
0:03:06 > 0:03:11Absolutely massive. It's three storeys, it's got five bedrooms, you've got an integral garage.
0:03:11 > 0:03:12You've got...
0:03:12 > 0:03:17I like this. This is the back, or I suppose it's the front, it's where you drive up.
0:03:17 > 0:03:20But the rear is where it really takes off,
0:03:20 > 0:03:24because one of the things you want to make the most of is this fantastic view.
0:03:24 > 0:03:29What they've done is, they've put exactly what I would've, loads and loads of glass.
0:03:29 > 0:03:34Not only have you got this conservatory here, but you've got these folding glass doors.
0:03:34 > 0:03:39Basically, the whole of the rear of the property, well, not all of it, but a large chunk of it,
0:03:39 > 0:03:42is going to open out onto the fields. That's fantastic.
0:03:42 > 0:03:46It's big, so it's going to be expensive to build,
0:03:46 > 0:03:51and the key here is making sure that there is a market in this area for this kind of property.
0:03:51 > 0:03:54That needs a bit more investigation.
0:03:54 > 0:03:59But a quick look at the surrounding properties puts my mind at ease.
0:04:01 > 0:04:05Just round the corner from the plot is this estate of executive houses.
0:04:05 > 0:04:09So the plot is well located
0:04:09 > 0:04:13and the house that's proposed wouldn't look out of place.
0:04:13 > 0:04:16A great plot of land with some great plans.
0:04:16 > 0:04:19Now all that's left is to actually build the house.
0:04:19 > 0:04:23To get a second opinion, I've asked along a local property expert.
0:04:23 > 0:04:28# Let's wander slowly Through the fields
0:04:29 > 0:04:34# Slowly, slowly through the fields
0:04:34 > 0:04:37# Of joy #
0:04:37 > 0:04:41The plot that we have here is a good-size plot. Ideal for a family home.
0:04:41 > 0:04:45The access is good, you've got the lane through to here.
0:04:45 > 0:04:49Surrounded by farmland, which is lovely. The views are stunning.
0:04:49 > 0:04:52We can see all the way into Essex from the top of the house, I'd imagine.
0:04:52 > 0:04:57We would expect a good-size family home, four or five bedrooms,
0:04:57 > 0:04:59and to be extremely popular.
0:05:00 > 0:05:04Once it's been built, what could it be worth?
0:05:05 > 0:05:10Given the specifications that I've seen and the planning permission that's been granted,
0:05:10 > 0:05:15I would envisage that, built in the same style as the houses surrounding it,
0:05:15 > 0:05:19we would be looking at a price in the region of £675,000.
0:05:20 > 0:05:23What if the purchaser decided to rent it out?
0:05:24 > 0:05:29The rental value would be around £1,900 per calendar month.
0:05:30 > 0:05:33Well, at that guide price of 185 to 195,000,
0:05:33 > 0:05:36I think there's money to be made on this one.
0:05:36 > 0:05:39And if those plans are anything to go by,
0:05:39 > 0:05:42the finished product could be pretty spectacular.
0:05:42 > 0:05:47Let's see who fancied the opportunity when it went under the hammer.
0:05:49 > 0:05:52Start me at 180, then. Standing in front of me, 180 I'm bid.
0:05:52 > 0:05:54On the way at 180. 185.
0:05:54 > 0:05:59185. 190. At 190. 190 again.
0:05:59 > 0:06:04192 I've got. 194. And six. 196.
0:06:04 > 0:06:06198 I'm looking for.
0:06:06 > 0:06:09Are we all done at £196,000?
0:06:09 > 0:06:12I'm going to sell. You won't get another chance.
0:06:12 > 0:06:16For the first time, then... 198 I've got.
0:06:16 > 0:06:20200 now, it's against you. 200, it's with you. And 202.
0:06:20 > 0:06:25202. Two-two, it's with you. Two-four. 204,000.
0:06:25 > 0:06:31Coming back again. Two-six. 208. 210. It's against you again.
0:06:31 > 0:06:35£208,000 on my right-hand side, for the first time.
0:06:35 > 0:06:37210 I've got. And 12.
0:06:37 > 0:06:40Are you coming back again? 214. He is.
0:06:40 > 0:06:42216. 216.
0:06:42 > 0:06:47And 18. We'll make it 220, get there first. 220.
0:06:47 > 0:06:52220. I've got £216,000. I'm looking for 220,000.
0:06:52 > 0:06:55For the first time, at 216,000.
0:06:55 > 0:07:00For the second time at 216,000. 220 I've got. 222,000.
0:07:00 > 0:07:03224. 224.
0:07:03 > 0:07:07224. At £222,000, I've got, for the first time.
0:07:07 > 0:07:09222, for the second.
0:07:09 > 0:07:12224.
0:07:12 > 0:07:17226? He says yes. 228. Or 230, if you want to. 230.
0:07:18 > 0:07:22228. 228. Your chance for 230. He's shaking his head.
0:07:22 > 0:07:28At £228,000 I'm bid, then. It's in the room for the first time at 228.
0:07:28 > 0:07:31You get another chance if you want to, even if it's 229.
0:07:31 > 0:07:37Second time at 228. Third and final time, £228,000.
0:07:37 > 0:07:40You're all done. Well done, sir. Sticking with it.
0:07:40 > 0:07:43It was anyone's guess who was going to win here.
0:07:43 > 0:07:48But in the end, it was Dave with his bid of £228,000.
0:07:49 > 0:07:53He bought the land with his business partner Adrian.
0:07:53 > 0:07:58They've run a building and landscaping company together for the last 25 years,
0:07:58 > 0:08:00but this is their first private investment.
0:08:00 > 0:08:03I caught up with Dave to find out more.
0:08:05 > 0:08:10- Dave, good to meet you. Congratulations.- Thanks. - Tell me why you wanted the land.
0:08:10 > 0:08:14It was the size of the plot and the location of it, really.
0:08:14 > 0:08:16That really was it.
0:08:16 > 0:08:20I think we'd waited for something like this to come along
0:08:20 > 0:08:25and suddenly it was on our doorstep, what we'd been looking for.
0:08:25 > 0:08:29It's... I'm looking forward to it. I'm excited, you know?
0:08:29 > 0:08:33I'm looking forward to putting a beautiful five-bedroom house up on it
0:08:33 > 0:08:36that my partner and me will be proud of.
0:08:36 > 0:08:42What was the final thing that made you think, "Now is the time"? You've obviously waited a long time.
0:08:42 > 0:08:46We did look around here these last few months, there are some plots,
0:08:46 > 0:08:49but nothing as big as this, nothing that had the appeal,
0:08:49 > 0:08:52especially the view from the rear garden.
0:08:52 > 0:08:54Dave is a bricklayer by trade
0:08:54 > 0:08:58and has a very experienced team to help him with the build.
0:09:00 > 0:09:04We employ a carpenter, ground workers, roofers.
0:09:04 > 0:09:07I shall just move them around.
0:09:07 > 0:09:10I'll be on site. I'm hands-on, I am.
0:09:10 > 0:09:14I'm there at six in the morning until six, seven, eight at night.
0:09:14 > 0:09:18And my partner, he's the money man really.
0:09:18 > 0:09:21He makes sure the money comes in.
0:09:21 > 0:09:26It's a bit good cop/bad cop. I'm the good guy, he's the bad guy.
0:09:26 > 0:09:30I say "yes" on site to this and that and agree with the client,
0:09:30 > 0:09:33"Course we can do that!"
0:09:33 > 0:09:35but then it's left to Adrian
0:09:35 > 0:09:39to collect the money at the end of the day. I couldn't do it.
0:09:39 > 0:09:43# Don't ask me, ask the money man #
0:09:43 > 0:09:46Even though Adrian is in charge of the pot of money,
0:09:46 > 0:09:49it was Dave who was making the bids at auction.
0:09:49 > 0:09:53But Adrian did make a very spooky prediction.
0:09:55 > 0:10:02Well, he got hold of the catalogue and put a little price down,
0:10:02 > 0:10:06what he thought we should stop at, in case we got carried away.
0:10:06 > 0:10:10Closed it and I didn't look at it until after we'd bought it
0:10:10 > 0:10:13and he'd put the price that we bought it, and that's the truth.
0:10:13 > 0:10:17What are the chances of that happening?
0:10:17 > 0:10:20Dave ended up paying right at the top of Adrian's limit,
0:10:20 > 0:10:23but the pair have saved money on architect's fees
0:10:23 > 0:10:28as, remember, the land came with planning permission for a five-bedroom house.
0:10:28 > 0:10:33It's a big design for a big bit of land. But is it too big?
0:10:33 > 0:10:39# Won't you please Make a little room for me? #
0:10:43 > 0:10:46It's a massive, massive house. It only just fits on this plot.
0:10:46 > 0:10:51That's the only thing that lets it down, really, if it'd had a bit more garden.
0:10:51 > 0:10:55But, as I say, we do have a landscaping division
0:10:55 > 0:10:59and we will carefully plan this garden to make it look big.
0:10:59 > 0:11:01We'll work hard at it.
0:11:01 > 0:11:05We'll put all 40 years of experience into it
0:11:05 > 0:11:08and make it a nice building.
0:11:08 > 0:11:12But making this a "nice building" is going to come at a cost.
0:11:12 > 0:11:15Dave and Adrian are coy about their budget,
0:11:15 > 0:11:18but having shelled out 228 grand on the plot,
0:11:18 > 0:11:22and with at least the same again, plus costs, to add on for the build,
0:11:22 > 0:11:25I reckon they'll be in this for somewhere around half a million.
0:11:25 > 0:11:29Will that leave room for any profit?
0:11:29 > 0:11:31What are you hoping to sell it for?
0:11:31 > 0:11:34Well, I would like to go for 650.
0:11:34 > 0:11:37I think it warrants it,
0:11:37 > 0:11:40especially with the views out the back.
0:11:40 > 0:11:43Erm... I'll go for it.
0:11:43 > 0:11:45- That's great.- I can't wait to start.
0:11:45 > 0:11:49- I can't wait to see it. Congratulations.- Thanks.- Good luck.
0:11:49 > 0:11:52Thank you. Cheers.
0:11:53 > 0:11:58So finally, Dave embarking on a building project of his very own.
0:11:58 > 0:12:01He seems genuinely excited about it and that's lovely to see.
0:12:01 > 0:12:04Of course, he's got to keep a handle on the budget
0:12:04 > 0:12:08and you never know what's going to happen in the property market.
0:12:08 > 0:12:12But you can find out how he gets on with this amazing build later in the show.
0:12:17 > 0:12:20Colliers Wood in south-west London
0:12:20 > 0:12:23is just a stone's throw from hip-and-trendy Wimbledon.
0:12:23 > 0:12:28Property in Colliers Wood is 15 or 20 percent cheaper than its fashionable neighbour,
0:12:28 > 0:12:31so I'm hoping for a bargain here.
0:12:32 > 0:12:35A hop, skip and a jump from the Tube station
0:12:35 > 0:12:38and I'm here to see this auction lot.
0:12:38 > 0:12:40It's an attractive two-bedroom mid-terrace,
0:12:40 > 0:12:44it's got double glazing and exposed brickwork, which is nice.
0:12:44 > 0:12:48The guide price was set at £185,000.
0:12:48 > 0:12:52# They call me mellow yellow #
0:12:52 > 0:12:54It's a good-looking little house all right,
0:12:54 > 0:12:56and if the front door is anything to go by,
0:12:56 > 0:13:00I'm hoping for a sunny disposition inside.
0:13:01 > 0:13:06Well, I'm glad to say they have kept with the yellow theme inside, as well.
0:13:06 > 0:13:10Although it's painted quite a happy colour, it's far from happy!
0:13:10 > 0:13:13It is in need of huge repair.
0:13:13 > 0:13:17We've got a decent-size space, nice lounge, good windows.
0:13:17 > 0:13:22I'm wondering whether it would be worth taking this wall out to really open up this hall.
0:13:22 > 0:13:24It would bring a lot more light into here.
0:13:24 > 0:13:26Some steep stairs, two bedrooms up there.
0:13:26 > 0:13:31You come to the back of the property and you've got a good-size dining area.
0:13:31 > 0:13:35The kitchen through there. It needs work and money spending on it.
0:13:35 > 0:13:38It's terribly dated.
0:13:38 > 0:13:41Mm... Not a great start.
0:13:41 > 0:13:46The unusual colour palette continues in the peppermint green kitchen.
0:13:48 > 0:13:51And off that, there's another surprise.
0:13:53 > 0:13:57At the back of the property, you can see that somebody has fitted a shower room.
0:13:57 > 0:13:59There's not even a bath in here.
0:13:59 > 0:14:02It all depends on how much room you have to play with upstairs.
0:14:02 > 0:14:08But I would knock this out and make this kitchen space much larger, more appealing,
0:14:08 > 0:14:12and move all of this upstairs. A much better use of space.
0:14:12 > 0:14:15If creating space is the name of the game,
0:14:15 > 0:14:20why not look to the decent-sized back garden to add some value?
0:14:22 > 0:14:26So out back, if you look beyond brambles and dead grass,
0:14:26 > 0:14:30you can see the neighbours have really made the most of their property.
0:14:30 > 0:14:35And while somebody has done a nice job of painting some windows on the brickwork,
0:14:35 > 0:14:40I'd go the whole hog and put some French or bi-folding doors there.
0:14:40 > 0:14:43You've got to keep up with the Joneses, haven't you?
0:14:43 > 0:14:47While we're at it, let's take a peek of some of the neighbouring properties.
0:14:49 > 0:14:51# Neighbour, neighbour
0:14:51 > 0:14:53# Don't wonder what goes on In my home #
0:14:53 > 0:14:58Ha-ha, a loft conversion! That gives me food for thought.
0:14:58 > 0:15:01Time to check out the upstairs.
0:15:02 > 0:15:06Things are fairly boxy up here. You've just got two rooms.
0:15:06 > 0:15:10But there's a loft space, and converting that
0:15:10 > 0:15:13could make all the difference to this house.
0:15:13 > 0:15:15You could add that third bedroom upstairs
0:15:15 > 0:15:19and then move the bathroom up here, which really does make sense.
0:15:19 > 0:15:23The average cost of a loft conversion is around 20 to 30,000.
0:15:23 > 0:15:29But get this - it could add as much as £100,000 to the end value of this house.
0:15:29 > 0:15:31Definitely worth considering!
0:15:32 > 0:15:35It would be quite a lot of work.
0:15:35 > 0:15:39You'd have to re-jig the layout up here, maybe even move the stairs.
0:15:39 > 0:15:44But the rooms are a decent size and it's all within the bounds of possibility.
0:15:44 > 0:15:47We asked a local property expert to cast an eye over the place
0:15:47 > 0:15:50and give us her thoughts.
0:15:50 > 0:15:53The house is great. There's lots of things you could do to it.
0:15:53 > 0:15:57You could keep the original layout and just refurbish it.
0:15:57 > 0:15:59You could look at bringing the bathroom upstairs.
0:15:59 > 0:16:04Or you could look at doing a loft conversion and changing the house.
0:16:04 > 0:16:08Might there be problems applying for permission to do a loft conversion?
0:16:10 > 0:16:14I think it would be quite easy because a lot of the houses have already had it done.
0:16:14 > 0:16:20That sets a precedent, so it would be difficult for them to say no if they've already given permission.
0:16:20 > 0:16:23So, if you were to keep the layout as it is and do the property up,
0:16:23 > 0:16:27what kind of rental income could be achieved?
0:16:27 > 0:16:32You could rent this property for £1,200 per calendar month in its current layout,
0:16:32 > 0:16:33but having been refurbished.
0:16:33 > 0:16:38And if you were to extend up into the loft space?
0:16:38 > 0:16:43A three-bedroom house with a loft conversion would get about £1,600 per calendar month,
0:16:43 > 0:16:48because you would let it to three sharers who would be happy to be so close to the Tube.
0:16:48 > 0:16:51Given the auction guide price of £185,000,
0:16:51 > 0:16:54what might the refurbished house sell for?
0:16:56 > 0:17:01Leaving the property in the exact layout it is now, but refurbishing it to a good standard,
0:17:01 > 0:17:06you could put it back on the market for 275, 285, and you would sell it quite quickly.
0:17:06 > 0:17:11If you were to do the loft and end up with three bedrooms and an upstairs bathroom,
0:17:11 > 0:17:13you are looking at the high 300s.
0:17:14 > 0:17:17I'd say this is an attractive house in a good location,
0:17:17 > 0:17:20with scope to develop and add value.
0:17:20 > 0:17:24So quite promising. A great one to go for, I'd say.
0:17:24 > 0:17:27Let's see who agreed with me as we go to auction.
0:17:27 > 0:17:33Two-bed, mid-terraced house, near Colliers Wood Station. Good lot.
0:17:33 > 0:17:35200. I'll go with 200.
0:17:35 > 0:17:38205. 210.
0:17:38 > 0:17:43215? 220 with the lady? 220.
0:17:43 > 0:17:45221?
0:17:45 > 0:17:47221. 222, madam?
0:17:47 > 0:17:49223?
0:17:49 > 0:17:52It was a popular lot, with bids flying in from all over the room.
0:17:52 > 0:17:57We pick things up again as the bidding reaches £250,000,
0:17:57 > 0:18:01already 65 grand over the guide price.
0:18:01 > 0:18:03250?
0:18:03 > 0:18:06Well done. 251?
0:18:06 > 0:18:10Well done, 251. 252? 253?
0:18:10 > 0:18:13254.
0:18:13 > 0:18:15Back to you. 253, sitting down.
0:18:15 > 0:18:18254?
0:18:18 > 0:18:24With you, 253. First... 254. Popular lot. New spot.
0:18:24 > 0:18:27255. 256.
0:18:27 > 0:18:29257.
0:18:29 > 0:18:32258.
0:18:32 > 0:18:34259?
0:18:34 > 0:18:39With you, sir, in the aisle. 258. Looking for 259.
0:18:39 > 0:18:42259. Back in. 260.
0:18:42 > 0:18:44261?
0:18:44 > 0:18:48Just round it off, 261. Never stop on an even. 261.
0:18:48 > 0:18:53262. 263? I daren't ask any more!
0:18:53 > 0:18:57262. 263 elsewhere?
0:18:57 > 0:19:00262. First time. Second time.
0:19:00 > 0:19:03Third and last time if you're all done...
0:19:03 > 0:19:06Sold. 262. Well done.
0:19:06 > 0:19:11That successful bid of 262,000 was made by Robert.
0:19:11 > 0:19:16He used to work in IT, but now develops property full time.
0:19:16 > 0:19:20He's bought the mid-terrace with his brother Andrew, a finance director.
0:19:20 > 0:19:25I met the brothers back at the house to find out their plans.
0:19:25 > 0:19:28- Guys, Congratulations.- Thank you.
0:19:28 > 0:19:33- How did you end up in the auction room?- We looked at a couple of properties in December,
0:19:33 > 0:19:37and we didn't get them, for various reasons. They'd sold pre-auction.
0:19:37 > 0:19:40Then we saw this one in an auction, we came and looked at it,
0:19:40 > 0:19:46we liked its location, we thought it was close to public transport, there's a Tube down the road.
0:19:46 > 0:19:50We thought it was a sunny outlook at the back, it's south-facing.
0:19:50 > 0:19:53We thought it had prospects, in terms of being able to enlarge it
0:19:53 > 0:19:57and possibly make what is now a two-bed, one-bathroom house
0:19:57 > 0:19:59into a three-bed, two-bathroom house.
0:19:59 > 0:20:05Great stuff. It sounds like Andrew and Robert are thinking about developing the loft
0:20:05 > 0:20:09and transforming this two-bed mid-terrace.
0:20:09 > 0:20:12Who spotted the potential of going up into the loft?
0:20:12 > 0:20:16We looked two doors down, there's a loft extension!
0:20:16 > 0:20:19We thought we'd have a look at that.
0:20:19 > 0:20:24- That really is untapped potential. It's definitely worth looking into. - Yes, we will.
0:20:24 > 0:20:27What was it that you liked about the house?
0:20:27 > 0:20:30Basically, it's a blank canvas. Everything needs doing.
0:20:30 > 0:20:34I didn't want a place where it's half done and you've got to rip it out.
0:20:34 > 0:20:38Everything needs doing, so it's a good project.
0:20:38 > 0:20:41What's the game plan? How is it all going to start?
0:20:41 > 0:20:44- Who's going to crack on with it? - On Monday, I'm coming in
0:20:44 > 0:20:48and I'm going to start work by myself.
0:20:48 > 0:20:51What are you going to do? Tell me the plan.
0:20:51 > 0:20:54Obviously new kitchen, new bathroom.
0:20:54 > 0:20:59We might even move the stairs, move them to one side. Erm...
0:20:59 > 0:21:02New plumbing, electrics,
0:21:02 > 0:21:07the walls all need plastering, new flooring...
0:21:07 > 0:21:09Everything, basically!
0:21:09 > 0:21:11Have you sat down and really worked this out?
0:21:11 > 0:21:17Have you got the drawing board out and scribbled some designs on there yet or not?
0:21:17 > 0:21:18No.
0:21:19 > 0:21:22All he's got is spreadsheets for the finances!
0:21:22 > 0:21:25What role do you play in this, Andrew?
0:21:25 > 0:21:28I'm a finance director by profession,
0:21:28 > 0:21:32so I worked out the budget for this particular project to start with
0:21:32 > 0:21:36and how much I reckoned we should pay for it.
0:21:36 > 0:21:38We've got a budget to work with going forward.
0:21:38 > 0:21:44That will be affected by whether or not we go ahead with the conversion. I feel that we probably will.
0:21:44 > 0:21:47Let me into the secret. What is your budget?
0:21:47 > 0:21:52For the materials, we've got a budget of just under £15,000,
0:21:52 > 0:21:56obviously because Robert's labour will be free.
0:21:56 > 0:21:59- And...- I haven't told him yet!
0:21:59 > 0:22:02Have you had a chat yet?! Come on!
0:22:02 > 0:22:08No, basically, what we've done is, we've agreed a sort of profit-share, based on the end result.
0:22:08 > 0:22:11But Robert will get a credit for his labour.
0:22:11 > 0:22:13You've already got your spreadsheets,
0:22:13 > 0:22:17you know exactly how much it's going to cost, £15,000 for the materials.
0:22:17 > 0:22:20Now, if you do go up into the loft, have you worked that out?
0:22:20 > 0:22:23No. We're going to get some quotes for that next week.
0:22:23 > 0:22:28We'll probably go to three or four and get the best price for it.
0:22:28 > 0:22:32How long do you think it'll take from start to finish to get this place sorted?
0:22:32 > 0:22:36We've got three to six months, I would say.
0:22:36 > 0:22:40Six months if we do the loft. Three months if we don't.
0:22:40 > 0:22:43I've got to ask you, who's the elder brother?
0:22:43 > 0:22:45- Can't you guess?! - Who's the oldest?
0:22:45 > 0:22:48There's two years between us. Now guess.
0:22:48 > 0:22:51Don't put me on the spot! You? Just because you're tallest!
0:22:51 > 0:22:53I am!
0:22:53 > 0:22:55Guys, I think you've got a cracking buy here.
0:22:55 > 0:23:01- Good luck with this project. It's been great meeting you both. - BOTH: Thank you.
0:23:01 > 0:23:04# He's my brother #
0:23:04 > 0:23:08So, how will Andrew and Robert get on with their first joint venture?
0:23:08 > 0:23:14Will it be all brotherly love or will it be more a case of brotherly rivalry?
0:23:14 > 0:23:17You can find out how it all goes later in the programme.
0:23:18 > 0:23:24Coming up, in Gateshead, this two-bed bungalow presents a very welcome surprise.
0:23:24 > 0:23:27Wow! I was not expecting this!
0:23:28 > 0:23:32In south London, Robert and Andrew's renovation
0:23:32 > 0:23:35of this two-bed mid-terrace gets the thumbs-up.
0:23:35 > 0:23:38They've done the best with an original Victorian layout.
0:23:40 > 0:23:42But first, in Kent, Dave's business partner
0:23:42 > 0:23:45shares the secret of their success.
0:23:45 > 0:23:48This is Mr Chalk. I'm Mr Cheese.
0:23:52 > 0:23:54Back now to Longfield in north Kent,
0:23:54 > 0:23:57just a hope, skip and a 15-minute train ride to Central London.
0:23:57 > 0:24:01Up for auction, in the middle of all these executive homes,
0:24:01 > 0:24:04was this building plot.
0:24:05 > 0:24:07# I said hey, honey
0:24:07 > 0:24:09# Take a walk on the wild side #
0:24:09 > 0:24:15It may not look much, but it did have planning permission for a five-bedroomed house.
0:24:15 > 0:24:17Look at that! Oh, my goodness!
0:24:17 > 0:24:21This is straight out of Dallas! Absolutely massive.
0:24:21 > 0:24:26The plot was snapped up at auction for £228,000
0:24:26 > 0:24:29by bricklayer Dave and his business partner Adrian,
0:24:29 > 0:24:31a landscape gardener.
0:24:31 > 0:24:36Dave was looking forward to their first go at building a house from start to finish.
0:24:36 > 0:24:39We'd waited for something like this to come along
0:24:39 > 0:24:43and suddenly it was on our doorstep, what we'd been looking for.
0:24:43 > 0:24:46I'm excited, you know?
0:24:46 > 0:24:50I'm looking forward to putting a beautiful five-bedroom house up on it
0:24:50 > 0:24:53that my partner and me will be proud of.
0:24:53 > 0:24:57The boys were cagey about their budget for the five-bed house,
0:24:57 > 0:25:02but they did give themselves a nine to ten-month timescale to complete the work.
0:25:02 > 0:25:06With its wide-open views, this place really could be magic.
0:25:06 > 0:25:0916 months after our first visit,
0:25:09 > 0:25:14we're back to see how Dave and Adrian have got on.
0:25:14 > 0:25:16# This is
0:25:16 > 0:25:18# A kind
0:25:18 > 0:25:20# Of magic #
0:25:21 > 0:25:23And as if by magic,
0:25:23 > 0:25:27a five-bedroom house has parachuted into the plot.
0:25:27 > 0:25:31Although there's still some work to do to finish it off,
0:25:31 > 0:25:36you can see that before too long, this will be an amazing family home.
0:25:36 > 0:25:39# Will soon be done
0:25:39 > 0:25:40# Done! #
0:25:40 > 0:25:44For a first go at overseeing a property build from scratch,
0:25:44 > 0:25:47it's been in at the deep end for Dave.
0:25:47 > 0:25:51But he seems to have thoroughly enjoyed the process.
0:25:52 > 0:25:58I always wanted to do it. I'm happy to have done it. I'm pleased with what we've done.
0:25:58 > 0:26:00And, I don't know,
0:26:00 > 0:26:03maybe there'll be another one. We'll see.
0:26:03 > 0:26:04# Magic! #
0:26:04 > 0:26:08Dave has really got involved with every part of the process,
0:26:08 > 0:26:11right down to choosing the spec for the bathrooms.
0:26:12 > 0:26:14This is the master ensuite.
0:26:14 > 0:26:19I just wanted something that when you walked in you went "Wow!"
0:26:19 > 0:26:26So I thought black and white. Freestanding bath, nice chrome legs.
0:26:26 > 0:26:31A nice shower to be able to walk into, with plenty of room.
0:26:31 > 0:26:35And I just fancied a little feature that I thought I'd put in.
0:26:35 > 0:26:38That's the closest I could get.
0:26:38 > 0:26:42Basically, I'm really happy with the way it's turned out.
0:26:42 > 0:26:45I think it's a lovely bathroom.
0:26:45 > 0:26:49Nice and bright and, erm... Yes.
0:26:50 > 0:26:52And while Dave has been hands-on,
0:26:52 > 0:26:56his business partner Adrian has been busy behind the scenes.
0:26:58 > 0:27:00Dave's very much a doer
0:27:00 > 0:27:04and I sit in the counting house, counting out the money.
0:27:04 > 0:27:08And that's how we work. It's a good combination.
0:27:09 > 0:27:13Dave and Adrian still refuse to tell us how much they spent on the build.
0:27:13 > 0:27:17But with their purchase price of £228,000,
0:27:17 > 0:27:22I'd be surprised if they had much change from £500,000 in total.
0:27:22 > 0:27:27But Adrian does have a clear idea of how much they would like to sell it for.
0:27:28 > 0:27:33Our figure at the moment stands at 870.
0:27:33 > 0:27:37That's flexible, possibly both ways.
0:27:37 > 0:27:41It doesn't have to be completely finished, we're not quite finished,
0:27:41 > 0:27:47and if the right buyer comes along and they want to finish it, it's open for negotiation.
0:27:47 > 0:27:52But it could also go the other way. If somebody comes along and says, "I want gold-plated floors",
0:27:52 > 0:27:57we'll do it and they can pay the difference to what we propose to do.
0:27:58 > 0:28:04A sale at £870,000 would surely mean a healthy profit for them.
0:28:04 > 0:28:08Bad weather and to-ing and fro-ing with planners in the early stages
0:28:08 > 0:28:13means that their timescale has slipped by about six months, and there's still work to do.
0:28:13 > 0:28:17But bricklayer Dave remains upbeat about the project.
0:28:17 > 0:28:22I'm so pleased to have been a bricklayer and to build the whole house.
0:28:22 > 0:28:24We've done it from the ground to the roof.
0:28:24 > 0:28:28I've been involved all the way through. Thoroughly enjoyed it.
0:28:29 > 0:28:33We asked two local estate agents to look around the property
0:28:33 > 0:28:36and give us their thoughts.
0:28:36 > 0:28:40It's absolutely fantastic. The quality is outstanding.
0:28:40 > 0:28:42It's a good size
0:28:42 > 0:28:47and I think that any family would be very happy here.
0:28:48 > 0:28:52I really like the property. Fantastic-size rooms.
0:28:52 > 0:28:54It'd be lovely to see it when it's completed.
0:28:54 > 0:28:57Obviously haven't seen the kitchen yet.
0:28:57 > 0:28:59But it is a lovely house.
0:28:59 > 0:29:05What do the experts think it might fetch on the rental market?
0:29:06 > 0:29:11I would currently rent this property out for around £2,500 per calendar month.
0:29:11 > 0:29:14We'd be looking to rent this out
0:29:14 > 0:29:19at somewhere in the region of £2,500 to £3,000 per calendar month.
0:29:19 > 0:29:25I was thinking maybe 3,000 a month. Maybe a touch over.
0:29:25 > 0:29:27We'd have to work hard to get that,
0:29:27 > 0:29:33but I'd be quite willing to work to obtain that sort of money.
0:29:33 > 0:29:35It's an idea.
0:29:35 > 0:29:38But Dave and Adrian would rather sell the house on.
0:29:38 > 0:29:44They hope to secure £870,000. How likely is that?
0:29:45 > 0:29:51I would currently market this property for around 800 to £825,000.
0:29:51 > 0:29:55We'd be looking at putting this on the market at a guide price
0:29:55 > 0:30:00between 850,000 to 875,000.
0:30:00 > 0:30:06- Well...- One of them's out to lunch and the other one is getting close.
0:30:06 > 0:30:09I think one's a good price that we thought it was,
0:30:09 > 0:30:13and the other one is miles too low for the size of the property.
0:30:13 > 0:30:17Dave and Adrian have done a great job here.
0:30:17 > 0:30:23Despite their refusal to tell us what they've spent, there's surely a healthy profit in this
0:30:23 > 0:30:27if they get anything like the 870,000 they're hoping for.
0:30:27 > 0:30:30So, what's the secret of their success?
0:30:31 > 0:30:35This is Mr Chalk. I'm Mr Cheese.
0:30:35 > 0:30:38You've heard it before - good cop, bad cop.
0:30:38 > 0:30:43I go in and chat and smooth it all over,
0:30:43 > 0:30:49and when I've finished the job, this guy goes in with a final account and upsets them.
0:30:49 > 0:30:51And we move on from there!
0:30:52 > 0:30:56What does the future hold for the duo? Another new build?
0:30:57 > 0:31:01We're happy to go on. Why stop when you're having fun?
0:31:01 > 0:31:04This is the first time we've built a house for ourselves.
0:31:04 > 0:31:07It's surprising what you can do.
0:31:07 > 0:31:10This guy's a gardener, I'm a bricklayer,
0:31:10 > 0:31:14and together we've built a home, a nice family home.
0:31:14 > 0:31:17- Yes.- Yes.- I wish I could live here.
0:31:17 > 0:31:21If I was a rich builder, I would be able to live here!
0:31:21 > 0:31:24I'd be his handyman.
0:31:26 > 0:31:28# Fog on the Tyne is all mine, all mine
0:31:28 > 0:31:31# The fog on the Tyne is all mine #
0:31:31 > 0:31:36This is Gateshead, on the southern bank of the Tyne, across the water from Newcastle.
0:31:36 > 0:31:39With its seven bridges spanning the river
0:31:39 > 0:31:42and architecturally striking modern buildings,
0:31:42 > 0:31:44Gateshead is on the up.
0:31:44 > 0:31:48Something else on the up is the Angel of the North.
0:31:48 > 0:31:51Standing 20 metres tall, with a wingspan of 54 metres,
0:31:51 > 0:31:56this amazing sculpture is truly iconic.
0:31:56 > 0:32:00So, will today's property prove to be an angel or a demon?
0:32:00 > 0:32:03I'm in Lobley Hill, a popular residential area,
0:32:03 > 0:32:06about a ten-minute drive from Gateshead town centre.
0:32:06 > 0:32:13I say popular - it is, too, especially since the colliery's been turned into a park.
0:32:13 > 0:32:16What more could you possibly want? This is the property.
0:32:16 > 0:32:21It's a two-bed bungalow at a guide price of £110,000. Let's take a look.
0:32:21 > 0:32:25The area has a pleasant suburban feel.
0:32:25 > 0:32:28With its space to walk your dogs and for the kids to feed the ducks,
0:32:28 > 0:32:33it's got that winning mix of urban connections and room to breathe.
0:32:37 > 0:32:40Well, what have we got? That's a nice surprise, I have to say.
0:32:40 > 0:32:45Stripped floorboards always gives a nice feel to a property, I think.
0:32:45 > 0:32:49Come through the front door, little corridor and then you've got what I think is a bedroom.
0:32:49 > 0:32:53It's not huge, but lots of light coming in.
0:32:53 > 0:32:58Over to this side, you've got a reasonable-size living room.
0:32:58 > 0:33:01Again, the bay-fronted windows. We really like that.
0:33:01 > 0:33:04You've got central heating, which is good news, as well.
0:33:04 > 0:33:10And high ceilings, so you don't feel too claustrophobic, which is good. All in all, big tick.
0:33:10 > 0:33:15Big tick indeed. The bungalow looks to be in a perfectly liveable condition.
0:33:15 > 0:33:19In fact, it's very well done. You could move in tomorrow if you really wanted.
0:33:20 > 0:33:25The bathroom is good and the second bedroom at the back is a decent size.
0:33:25 > 0:33:30It's all quite neat and petite. Not exactly spacious,
0:33:30 > 0:33:33but all of that may be about to change.
0:33:36 > 0:33:40Wow! I was not expecting this!
0:33:40 > 0:33:43Look at the size of this kitchen!
0:33:43 > 0:33:47It's enormous. And... My mind is racing right now!
0:33:47 > 0:33:51Think about extending it even further, you could have doors into the garden.
0:33:51 > 0:33:55Fantastic place for a family. It's always the heart of a home.
0:33:55 > 0:33:58You could have a big sofa there, with a telly.
0:33:58 > 0:34:01There's even space for a dining table.
0:34:01 > 0:34:04It's wonderful. A real bonus.
0:34:04 > 0:34:08It turns this bungalow on its head, as far as I'm concerned.
0:34:08 > 0:34:10# Oh, my starry eyed surprise
0:34:10 > 0:34:12# Sundown to sunrise #
0:34:12 > 0:34:14This really is a pleasant surprise.
0:34:14 > 0:34:19The kitchen is much bigger than you'd expect in a bungalow of this size and age.
0:34:19 > 0:34:24It's obviously a later extension, but really makes a huge difference to this house.
0:34:27 > 0:34:30Wow! Well, another fantastic surprise
0:34:30 > 0:34:34when you come and out to the rear and see the garden!
0:34:34 > 0:34:39It's absolutely massive. You've got these views over the surrounding hills.
0:34:39 > 0:34:44It's no surprise the catalogue had a picture of the rear, rather than the front.
0:34:44 > 0:34:46Great space.
0:34:48 > 0:34:53So a nice family garden. Could you turn this into an ideal family house?
0:34:53 > 0:34:59For that, you need a third bedroom. Is that a possibility? Let me think.
0:34:59 > 0:35:04I guess you could put a partition wall in here, play around with the other rooms.
0:35:04 > 0:35:09You could always put a dormer bedroom in, I suppose.
0:35:09 > 0:35:12But I'm not sure you're not falling in between two stools there
0:35:12 > 0:35:17because you're losing this gorgeous family-size space.
0:35:17 > 0:35:23If you're using this as somewhere that's maybe a retired person, they don't need the extra rooms.
0:35:23 > 0:35:25Talk to an estate agent.
0:35:25 > 0:35:29Find out the differences of two and three beds round here and then make your decision.
0:35:29 > 0:35:33I think I'm coming down on the side of "leave it as it is".
0:35:33 > 0:35:37I think if you were going to get into third bedroom territory,
0:35:37 > 0:35:40you'd need to build a proper extension to the side
0:35:40 > 0:35:43to retain the living space a family needs.
0:35:43 > 0:35:48That could well hit the ceiling of what bungalows on this road go for.
0:35:48 > 0:35:52We asked along a local estate agent to get her views on this place,
0:35:52 > 0:35:56which had an auction guide price of £110,000.
0:35:57 > 0:36:00The general condition is very good.
0:36:00 > 0:36:03However, I would recommend spending between 10 and 15,000
0:36:03 > 0:36:08on general decoration and a little bit cosmetic enhancement.
0:36:09 > 0:36:15Would it be worthwhile maximising the accommodation by creating a third bedroom?
0:36:15 > 0:36:19A third bedroom, I don't think would add any value whatsoever.
0:36:19 > 0:36:22If you did go up into the loft space
0:36:22 > 0:36:25or you did extend out to the side, perhaps it would,
0:36:25 > 0:36:29but I think you would take it away from being a traditional bungalow.
0:36:29 > 0:36:34So, in this area, how much could the bungalow achieve on the rental market?
0:36:35 > 0:36:37The rental in this area's very good.
0:36:37 > 0:36:42I would feel 550 per calendar month is a reasonable price.
0:36:42 > 0:36:48Once renovated, what's the maximum value that a property like this could hope to sell for?
0:36:49 > 0:36:54Realistically, the ceiling price should be around 150,000.
0:36:55 > 0:37:01Well, bought for anything like the guide price, I think there's money to be made on this.
0:37:01 > 0:37:04It's a good property in a great location.
0:37:04 > 0:37:07Let's see who agreed when it went under the hammer.
0:37:11 > 0:37:14A well-presented two-bed semi-detached bungalow.
0:37:14 > 0:37:17Price guide of 110.
0:37:17 > 0:37:20Anybody want to start at 110?
0:37:20 > 0:37:22105?
0:37:23 > 0:37:25100?
0:37:25 > 0:37:30Guys, I'm meant to be going up. I'm going the wrong way.
0:37:30 > 0:37:3490,000 anywhere? 90 to go in the room or I'm going to pull.
0:37:34 > 0:37:38As soon as you say, you suddenly get people. At 90,000. Far right at 91.
0:37:38 > 0:37:4292. Are you coming in at 93? 93 bid.
0:37:42 > 0:37:4594. 95?
0:37:45 > 0:37:49£94,000. Anything further? We're at £94,000 in the room.
0:37:49 > 0:37:5395 to the lady. 96?
0:37:53 > 0:37:5896? We're selling, lady standing at 95,000. I'm going to sell.
0:37:58 > 0:38:02This is your last chance. I'm selling once at 95.
0:38:02 > 0:38:06You're both out. I'm going to sell it for the second time at £95,000.
0:38:06 > 0:38:09Sold.
0:38:10 > 0:38:16The winning bid of 95,000 was a whopping 15,000 under the guide price
0:38:16 > 0:38:18and it was made by Jacqueline.
0:38:18 > 0:38:22She and her husband Kevin have bought the bungalow to add to their small portfolio.
0:38:22 > 0:38:25Jacqueline works in transport for local government
0:38:25 > 0:38:28and Kevin runs a kitchen and bathroom-fitting business.
0:38:28 > 0:38:32I caught up with them back at their new purchase to find out more.
0:38:33 > 0:38:36Lovely to meet you both. Congratulations.
0:38:36 > 0:38:42- Tell me why you wanted to buy it. - We haven't done a lot in the market for the last two years.
0:38:42 > 0:38:45Property in this area is still quite strong,
0:38:45 > 0:38:49but a bungalow is a safe bet at the moment with the market.
0:38:49 > 0:38:51There's not many of them about
0:38:51 > 0:38:56and you've got more likelihood of getting a buyer for it after you've renovated it.
0:38:56 > 0:38:59Tell me about your experience. Have you done this in the past?
0:38:59 > 0:39:02We've got a small buy-to-let portfolio,
0:39:02 > 0:39:07and we did a little bit of renovation, but we haven't done anything for the past two years
0:39:07 > 0:39:10and we've stepped back into the market now.
0:39:10 > 0:39:13- Previous projects worked well? - Yes, they did.
0:39:13 > 0:39:18But with the market falling a bit flat, we decided to step out a bit, you know?
0:39:18 > 0:39:23And then decided to come back in when the property is as low as it's going to be,
0:39:23 > 0:39:25and it's probably on the way back up again.
0:39:25 > 0:39:30OK. So, why this property in particular?
0:39:30 > 0:39:36It has a very good location. The transport networks are very good in this area.
0:39:36 > 0:39:38There's a really good school in this area, as well.
0:39:38 > 0:39:42It just seemed a good option to buy at this moment in time.
0:39:42 > 0:39:44It doesn't need a huge amount done, either.
0:39:44 > 0:39:48- I grew up here, as well, so I know the area quite well.- Right.
0:39:48 > 0:39:52- What was the auction like?- I wasn't there, so Jackie can answer.
0:39:52 > 0:39:57I did that. It was fine. It was a very quick procedure.
0:39:57 > 0:40:02Probably the quickest I've ever seen a property go through the auction. It was quite painless.
0:40:02 > 0:40:05- Were you happy with what you paid? - Very happy, yes.
0:40:05 > 0:40:09At what point did you get to hear about how much it had cost?
0:40:09 > 0:40:11When she came home from the auction, I got a call.
0:40:11 > 0:40:17She says, "I've bought it." I says, "Congratulations!"
0:40:17 > 0:40:19Congratulations indeed,
0:40:19 > 0:40:24as canny Jacqueline got the bungalow for £15,000 below the guide price.
0:40:24 > 0:40:26The couple know the area very well.
0:40:26 > 0:40:31Their policy is to play safe and only buy properties within a 10-mile radius of where they live.
0:40:31 > 0:40:35Having that local knowledge can be key.
0:40:35 > 0:40:38A bungalow, then, is that a good or a bad thing in your eyes?
0:40:38 > 0:40:41I think it's a good thing.
0:40:41 > 0:40:44A lot of people, even families, tend to move into bungalows.
0:40:44 > 0:40:50So we intend to try and make this one a three-bedroom,
0:40:50 > 0:40:53because there's a shortage of three-bed properties in this area.
0:40:53 > 0:40:56Right, and how are you going to add the extra bedroom?
0:40:56 > 0:41:00We're going to put a stud wall across there to create a kitchen,
0:41:00 > 0:41:03move this wall further back to make this room a little bigger.
0:41:03 > 0:41:07- Also, take that wall out.- Right! - Make it a little wider.
0:41:07 > 0:41:11It'll create a bigger space and this'll be a living room.
0:41:11 > 0:41:15And what is currently the living room will be, what, a bedroom?
0:41:15 > 0:41:18- BOTH: Yes. - Then you create three bedrooms
0:41:18 > 0:41:24and it gives you the option that you could use this as an eating and living area,
0:41:24 > 0:41:27or you could change one of the rooms at the front.
0:41:27 > 0:41:30It just gives maximum scope for the property to be used.
0:41:30 > 0:41:34Have you checked out the demand and the value
0:41:34 > 0:41:37of two and three-bedroom properties in the area?
0:41:37 > 0:41:41Every bungalow on this road is a different layout.
0:41:41 > 0:41:44They've had different things done to them.
0:41:44 > 0:41:47Some are a little bit smaller, some are a little bit bigger.
0:41:47 > 0:41:50But there's very few three-bedroomed properties in the Lobley Hill area.
0:41:50 > 0:41:55So people with families are having to move out of the area and away from the good schools
0:41:55 > 0:41:57because most are two bedrooms.
0:41:57 > 0:42:02- So, you're doing it more for the saleability rather than to add a lot of value?- Definitely.
0:42:02 > 0:42:06It's not a huge amount of work to make it from a two to a three.
0:42:06 > 0:42:08It's a case of moving a few walls.
0:42:08 > 0:42:10Only a case of moving a few walls?!
0:42:10 > 0:42:14Jacqueline makes it sound so easy, although perhaps it is
0:42:14 > 0:42:18when you've got all-rounder Kevin on hand to do most of the work.
0:42:20 > 0:42:24I'm a kitchen and bathroom fitter and an electrician, so I'll do most of the work myself.
0:42:24 > 0:42:27What I can't do, I know everyone in the trade, so...
0:42:27 > 0:42:30Great! What's your budget?
0:42:30 > 0:42:33Probably in the region of about £15,000.
0:42:33 > 0:42:36Does that cost in your time, as well?
0:42:36 > 0:42:40My time's free. She doesn't pay me nothing!
0:42:41 > 0:42:44I tend to buy them and he does the work.
0:42:44 > 0:42:47- I'm her slave!- Yes!- The slave!
0:42:47 > 0:42:50- Congratulations. Well done. - Thank you very much.- Good luck.
0:42:50 > 0:42:53- We'll look forward to seeing how you get on.- Thank you.
0:42:53 > 0:42:56Jacqueline and Kevin have clearly got themselves a good buy here.
0:42:56 > 0:43:00In terms of carving it up to create that third bedroom,
0:43:00 > 0:43:02I'm not sure it's the right thing to do.
0:43:02 > 0:43:06On the other hand, maybe it will draw in those families.
0:43:06 > 0:43:09Only one way to find out. You can watch later in the show.
0:43:11 > 0:43:17It's been a while since we last saw those properties. Have our new owners been busy bees?
0:43:17 > 0:43:21Or have they been stung and stopped dead? Let's find out.
0:43:22 > 0:43:26We're back in south west London, Colliers Wood, to be precise,
0:43:26 > 0:43:29to check on progress at this two-bed mid-terrace
0:43:29 > 0:43:35which brothers Robert and Andrew bought at auction for £262,000.
0:43:37 > 0:43:42- What was it that you liked about it? - It's a blank canvas. Everything needs doing.
0:43:42 > 0:43:43Have you worked this out?
0:43:43 > 0:43:48Have you got the drawing board out and scribbled some designs on there yet or not?
0:43:48 > 0:43:49No!
0:43:50 > 0:43:53All he's got is spreadsheets for the finances!
0:43:54 > 0:43:56Andrew was in charge of the purse strings.
0:43:56 > 0:44:00They had a budget of just under £15,000 for materials,
0:44:00 > 0:44:04but they hadn't got a price for a possible loft conversion.
0:44:07 > 0:44:09Who spotted the potential of going into the loft?
0:44:09 > 0:44:13We looked two doors down, there's a loft extension!
0:44:13 > 0:44:16We thought we'd have a look at that.
0:44:16 > 0:44:19Little brother Robert was going to do a lot of the work.
0:44:19 > 0:44:22Their timescale was between three and six months,
0:44:22 > 0:44:25depending on whether they went ahead with the loft conversion.
0:44:25 > 0:44:3112 months after our first visit, we're back to see how they got on.
0:44:31 > 0:44:37From the front, those skylights tell me that the loft conversion might've come good.
0:44:57 > 0:45:02The old peppermint green kitchen and tangerine shower room
0:45:02 > 0:45:04are things of the past.
0:45:04 > 0:45:08The new kitchen is much brighter and far more appealing.
0:45:09 > 0:45:13Right, so in the kitchen, originally there was a bathroom at the end here.
0:45:13 > 0:45:19We've taken the partition wall down and it's given us an extra three or four feet.
0:45:19 > 0:45:21It was originally a very dark room
0:45:21 > 0:45:23so we put in a large window,
0:45:23 > 0:45:26which makes the room a lot brighter.
0:45:26 > 0:45:32We've left space for appliances, a dishwasher and a washing machine.
0:45:32 > 0:45:37We've put in a range of units on this side.
0:45:37 > 0:45:41Also, we've moved the boiler from the wall here to the side,
0:45:41 > 0:45:45so that keeps it out of the way.
0:45:45 > 0:45:47Big changes on the ground floor.
0:45:47 > 0:45:51What does all this mean for the upstairs?
0:45:59 > 0:46:03Robert and Andrew have managed to fit the bathroom in on the first floor,
0:46:03 > 0:46:06which really works well.
0:46:06 > 0:46:09Two bedrooms, one at the front, one at the back,
0:46:09 > 0:46:13are now a bit smaller, but still a decent size.
0:46:15 > 0:46:18A brand-new staircase takes us up to the loft conversion,
0:46:18 > 0:46:22which has allowed for a third bedroom and an ensuite shower room.
0:46:22 > 0:46:25I like it! I like it a lot.
0:46:25 > 0:46:29But going up into the loft must've made a pretty hefty dent
0:46:29 > 0:46:32into the original budget of £15,000.
0:46:35 > 0:46:38The loft, when we decided to go ahead with that,
0:46:38 > 0:46:41we added to our original budget another £24,000.
0:46:41 > 0:46:46So the revised budget would've been £38,000 for materials,
0:46:46 > 0:46:49plus paying that contractor for the loft.
0:46:49 > 0:46:53We ended up spending 41,000, so we're 3,000 over budget.
0:46:53 > 0:46:57As overspends go, that's not too bad.
0:46:57 > 0:46:59Must've been all those spreadsheets, Andrew.
0:46:59 > 0:47:04Their timescale, however, has slipped from six months to one year.
0:47:05 > 0:47:09With their purchase price of £262,000,
0:47:09 > 0:47:12Robert and Andrew's total spend on the renovation
0:47:12 > 0:47:14comes in at £303,000.
0:47:14 > 0:47:20We asked two local estate agents to give us their thoughts.
0:47:21 > 0:47:26First impressions, it's a very nice house in a good location,
0:47:26 > 0:47:28and been well renovated.
0:47:28 > 0:47:31They've done the best with an original Victorian layout.
0:47:31 > 0:47:33These houses are quite tight,
0:47:33 > 0:47:37but having an ensuite in the top bedroom,
0:47:37 > 0:47:40vital for our buyers that we have today.
0:47:40 > 0:47:42It's going to appeal to your professional couple
0:47:42 > 0:47:46who work in the City and need the Tube.
0:47:47 > 0:47:51So, what do they think the property might fetch as a rental?
0:47:52 > 0:47:54The rental value in the current market
0:47:54 > 0:47:57would be approximately £1,500 per calendar month.
0:47:57 > 0:48:02I think the rental will be £1,500 per calendar month,
0:48:02 > 0:48:06possibly even £1,600.
0:48:06 > 0:48:11Those rental valuations would give Robert and Andrew a decent yield of around six percent,
0:48:11 > 0:48:15but the brothers would rather sell the property on than rent it out.
0:48:15 > 0:48:20What do the experts think the renovated mid-terrace could fetch on the resale market?
0:48:20 > 0:48:26I think the resale of this property is probably 385,000 to 390,000.
0:48:26 > 0:48:32I think the sale value should be in the region of 390 to 400,000.
0:48:33 > 0:48:35Those resale valuations
0:48:35 > 0:48:39could mean that Robert and Andrew are looking at a whopping pre-tax profit
0:48:39 > 0:48:42of between 82 and 97,000,
0:48:42 > 0:48:44minus fees and expenses.
0:48:44 > 0:48:49That's got to please finance director Andrew. But what about Robert?
0:48:50 > 0:48:55We've taken an offer of 400,000, so those estimates are spot on. I'm very happy with it.
0:48:55 > 0:48:59So buying at auction has been fruitful for the brothers.
0:48:59 > 0:49:04But will we see them back bidding for a bargain any time soon?
0:49:04 > 0:49:06Absolutely, yes.
0:49:06 > 0:49:10We're going to come out with a profit, so we'd like a similar project again.
0:49:13 > 0:49:16# Fog on the Tyne is all mine, all mine
0:49:16 > 0:49:19# The fog on the Tyne is all mine #
0:49:19 > 0:49:22Back to the Gateshead suburb of Lobley Hill
0:49:22 > 0:49:25to check on the progress of this two-bed bungalow,
0:49:25 > 0:49:28which Jacqueline and Kevin bought at auction for 95,000.
0:49:28 > 0:49:30I didn't think it needed much work,
0:49:30 > 0:49:34but the couple gave themselves a healthy £15,000 budget,
0:49:34 > 0:49:37and five to six weeks, to turn it from two to three beds.
0:49:43 > 0:49:45How are you going to add the extra bedroom?
0:49:45 > 0:49:49We're going to put a stud wall across there to create a kitchen,
0:49:49 > 0:49:52move this wall further back to make this room a little bigger.
0:49:52 > 0:49:56- Also, take that wall out.- Right! - Make it a little wider.
0:49:56 > 0:50:00- And what is currently the living room will be, what, a bedroom?- Yes.
0:50:00 > 0:50:03Then you create three bedrooms, and it gives you the option
0:50:03 > 0:50:08that you could use this as an eating and living area,
0:50:08 > 0:50:11or you could change one of the rooms at the front.
0:50:11 > 0:50:14It just gives maximum scope for the property to be used.
0:50:14 > 0:50:17I wasn't convinced about dividing up the kitchen.
0:50:17 > 0:50:23Ten weeks after our first visit, we're back to see how they got on fixing the place up.
0:50:25 > 0:50:28# Yo, baby, fix me up
0:50:28 > 0:50:30# In the middle of the morning Evening
0:50:30 > 0:50:33# Oh, baby, fix me up
0:50:33 > 0:50:36# Gotta give me some rubbing down And all of my squeezing
0:50:36 > 0:50:38# Oh, baby, fix me up
0:50:38 > 0:50:41# I want my healing #
0:50:41 > 0:50:45Kevin and Jacqueline have done a tremendous job of transforming this place.
0:50:45 > 0:50:52And if I can eat my words, the crowning glory is the re-jigged kitchen.
0:50:59 > 0:51:03What we did in here, it was one big area,
0:51:03 > 0:51:07so we moved that wall slightly further back
0:51:07 > 0:51:10to create a bit of a smaller bathroom.
0:51:10 > 0:51:14Swapped the windows over to create more light in this room.
0:51:14 > 0:51:17We then created this wall with a doorway through, to divide the two rooms
0:51:17 > 0:51:21and make this the living area and this the kitchen.
0:51:21 > 0:51:24What we did to create a bigger illusion of a kitchen
0:51:24 > 0:51:28is create all the storage space here.
0:51:28 > 0:51:30We built in the fridge-freezer in here,
0:51:30 > 0:51:33built-in cooker, built-in microwave,
0:51:33 > 0:51:37built-in washer, and a built-in dishwasher.
0:51:37 > 0:51:42So you have all your appliances. Plus, we created an eating area.
0:51:42 > 0:51:47It means you can have your sitting room in here and an eating area in here.
0:51:47 > 0:51:51We also fitted French doors going out into the garden,
0:51:51 > 0:51:56and just created a nice, bright, light room the best we could.
0:51:56 > 0:51:58Kevin's kitchen and bathroom-fitting skills
0:51:58 > 0:52:01have come to the fore in this renovation.
0:52:01 > 0:52:04But his input didn't stop there.
0:52:05 > 0:52:07I did most of the work myself
0:52:07 > 0:52:11because I'm an electrician, and I do kitchens and bathrooms, as well.
0:52:11 > 0:52:16So all the joinery, everything like that I done myself.
0:52:16 > 0:52:19Jackie helped to do the planning. It was her design for the kitchen.
0:52:19 > 0:52:21She helped design the bathroom.
0:52:21 > 0:52:26We both talked it through and decided to go with some of her ideas, some of mine.
0:52:26 > 0:52:29We put them both together and this is what we created.
0:52:29 > 0:52:32He makes it all sound so easy.
0:52:32 > 0:52:37But it hasn't been quite as straightforward as all that.
0:52:37 > 0:52:40When we bought it, it was quite a good standard.
0:52:40 > 0:52:43But there'd been a flood over the winter,
0:52:43 > 0:52:46so it was quite in a disarray really.
0:52:46 > 0:52:49The kitchen was rotten and when we started to pull things out,
0:52:49 > 0:52:53it was worse than what we'd anticipated.
0:52:53 > 0:52:57And I like to do things properly and to a good standard,
0:52:57 > 0:53:00so we decided to renovate to a good standard.
0:53:00 > 0:53:04Kevin's work commitments have meant that the timescale has slipped
0:53:04 > 0:53:07from five or six weeks to ten weeks.
0:53:07 > 0:53:10But that's still not bad at all.
0:53:10 > 0:53:13What about their £15,000 budget?
0:53:13 > 0:53:17We've spent approximately £21,500 on this project.
0:53:17 > 0:53:22Which has still come in quite comfortable. I'm quite happy with that.
0:53:22 > 0:53:27It was a little bit higher because we decided the boiler had to be replaced.
0:53:27 > 0:53:31It's got to be done by the correct people. So that increased the budget.
0:53:31 > 0:53:37We decided to redo the damp course around the whole property, because it was damp.
0:53:37 > 0:53:44And I've got to admit, we spent a little bit more on the kitchen and bathroom.
0:53:44 > 0:53:48Kevin and Jacqueline bought it for £95,000,
0:53:48 > 0:53:52so their £21,500 spend
0:53:52 > 0:53:56brings their total outlay to £116,500.
0:53:56 > 0:54:00We asked two local estate agents to look around the property
0:54:00 > 0:54:04to see if the couple have invested their money wisely.
0:54:04 > 0:54:08I think it's absolutely amazing. The standard is fantastic.
0:54:08 > 0:54:12The quality and finish is brilliant. Superb. I love it.
0:54:12 > 0:54:16I think it's been done to a very good standard.
0:54:16 > 0:54:19It's nice and neutral throughout
0:54:19 > 0:54:22and I'm impressed with the kitchen and the integrated appliances.
0:54:22 > 0:54:26So a big thumbs-up from the estate agents.
0:54:26 > 0:54:30Given Jacqueline and Kevin's total investment of 116,500,
0:54:30 > 0:54:36what do the experts think the bungalow might fetch if it was put up for sale?
0:54:36 > 0:54:39I think in this current market,
0:54:39 > 0:54:44I would start the marketing off at £155,000,
0:54:44 > 0:54:47to achieve in the region of £150,000.
0:54:47 > 0:54:51I would put this property on the market for £150,000.
0:54:51 > 0:54:54A sale at that valuation of £150,000
0:54:54 > 0:55:01would give the couple a pre-tax profit of £33,500, minus the usual selling expenses.
0:55:01 > 0:55:03What do they make of that?
0:55:04 > 0:55:08Erm, I think it's quite a low valuation.
0:55:08 > 0:55:12Bungalows are sought-after, especially in this area.
0:55:12 > 0:55:16The dishwasher, washing machine, the bathroom is all brand new.
0:55:16 > 0:55:19Basically, you're getting a brand-new house.
0:55:19 > 0:55:23I think it's a bit undervalued, but time will tell.
0:55:23 > 0:55:26What about rental valuations?
0:55:27 > 0:55:33I would perhaps put this on the market for rent at £695 per calendar month.
0:55:33 > 0:55:36I would put this on the rental market
0:55:36 > 0:55:39for £675 per calendar month.
0:55:39 > 0:55:41I think that's pretty spot on.
0:55:41 > 0:55:45- I would say they've got the rental about right!- Yes.
0:55:45 > 0:55:48Valuation's a bit low, but the rental is... Yes.
0:55:48 > 0:55:54From experience in that market, I would've marketed it at that.
0:55:54 > 0:55:56It's not something I really want to do,
0:55:56 > 0:56:00because once you've rented it out, it's never brand new again.
0:56:00 > 0:56:05So it probably isn't an option that we'll take. We will put this on the market to sell.
0:56:06 > 0:56:10Whoever does buy the bungalow will get a cracking little property in a great area,
0:56:10 > 0:56:14which they can adapt to their own style. Not bad at all.
0:56:14 > 0:56:20How have Kevin and Jacqueline enjoyed renovating this place?
0:56:20 > 0:56:23- I love it.- It's been a good development, this one.
0:56:23 > 0:56:26A safe development, definitely.
0:56:26 > 0:56:28Especially when it's close to home. It's been easy.
0:56:28 > 0:56:31- Yes?- Yes, it has. It has.
0:56:33 > 0:56:36Join us next time for more auction action.
0:56:36 > 0:56:41Yes, we'll have more buyers. Will they be successful or will it go horribly wrong?
0:56:41 > 0:56:45Will you be jealous or relieved it wasn't you?
0:56:45 > 0:56:47- See you soon.- BOTH: Goodbye!
0:56:47 > 0:56:51Subtitles by Red Bee Media Ltd
0:56:51 > 0:56:55E-mail subtitling@bbc.co.uk