0:00:02 > 0:00:06When you buy property, you want to know what's happening to the prices.
0:00:06 > 0:00:10How do you know what the market's doing? Is it going up or down?
0:00:10 > 0:00:13One way to find out is to go to your local auction house.
0:00:38 > 0:00:43Auctions are really exciting and you can easily be tempted to buy.
0:00:43 > 0:00:47But one way to guarantee success - you must do your homework first.
0:00:47 > 0:00:51So let's find out what properties created a buzz on today's show.
0:00:53 > 0:00:58'There's only one way to the kitchen in this Doncaster semi - by going out of the house!'
0:00:58 > 0:01:01That is the only way you can access the kitchen.
0:01:02 > 0:01:10'In Camberwell, South London, it's easy to get touchy-feely with this Victorian, three-bed house.'
0:01:10 > 0:01:12Just makes you want to give it a hug.
0:01:13 > 0:01:19'And in Attleborough, Norfolk, this semi-detached might have some serious problems ahead.'
0:01:19 > 0:01:23Something about that wall isn't quite right.
0:01:24 > 0:01:27'All these properties were sold at auction.
0:01:27 > 0:01:32- 'We'll find out who bought them when they went under the hammer.' - Yours, madam.
0:01:39 > 0:01:43I'm in Bentley just outside Doncaster
0:01:43 > 0:01:46where up for auction was a two-bed semi.
0:01:46 > 0:01:50It had a guide price of 40,000 to 45,000 quid.
0:01:50 > 0:01:53It looks OK from the outside. Let's take a look.
0:01:53 > 0:01:57It really does appear to be in decent condition from outside -
0:01:57 > 0:02:04double-glazed windows, a new door and brickwork that looks in fair order. It's all too good to be true!
0:02:04 > 0:02:10So... I'm not a big fan of that. You walk through the front door and you're faced by a wall.
0:02:10 > 0:02:16It's a door and not the stairs cupboard. It's very cramped. See if you can change that layout.
0:02:16 > 0:02:22You've got a front sitting room, then through into the rear sitting room. Not a bad size.
0:02:22 > 0:02:26But again, what is happening here in terms of layout?
0:02:26 > 0:02:33You go out through these doors into what is basically this conservatory area
0:02:33 > 0:02:37and that is the only way you can access the kitchen.
0:02:37 > 0:02:43How disastrous is that? It gets worse because back there is the only toilet in the property.
0:02:43 > 0:02:47The kitchen isn't a bad size and you have got this little serving hatch,
0:02:47 > 0:02:52but really, come on - major modifications required!
0:02:52 > 0:02:57This doesn't flow well at all and as things stand, it's way too complicated to remain.
0:02:57 > 0:03:01# Why do you have to go and make things so complicated? #
0:03:01 > 0:03:04That bathroom isn't ideal either.
0:03:04 > 0:03:09On the bright side, the other rooms are in good order and are a nice size to boot.
0:03:09 > 0:03:11Outside, it's far simpler.
0:03:11 > 0:03:16The garden is sizeable and you could even think about extending the property.
0:03:16 > 0:03:20It could take it, but there would be a ceiling price in the area,
0:03:20 > 0:03:24so you'd have to do your sums before any structural work.
0:03:24 > 0:03:30So upstairs, just two bedrooms - one at the rear of the property and another one at the front.
0:03:30 > 0:03:36A few things going on here - a bit of dampness on the wall. I don't think that's too much of an issue.
0:03:36 > 0:03:42Probably just a loose tile off the roof or guttering that needs clearing out. It doesn't concern me.
0:03:42 > 0:03:48Up here, I'd like to see a bathroom facility - maybe just a loo or an en-suite.
0:03:48 > 0:03:54I don't know what you could do. But compared to the downstairs, upstairs is actually quite peachy.
0:03:55 > 0:03:59So if you got that kitchen-conservatory layout sorted,
0:03:59 > 0:04:05then at the £40,000 to £45,000 guide price, this house could prove an attractive investment.
0:04:06 > 0:04:10But would a local estate agent be equally positive?
0:04:10 > 0:04:12We invited one along to find out
0:04:12 > 0:04:16and started off by asking about the awkward layout here.
0:04:16 > 0:04:18The layout of these properties
0:04:18 > 0:04:22are all the same, all traditional, but some have knocked them through.
0:04:22 > 0:04:25It is the formal lounge and dining set-up.
0:04:25 > 0:04:28Two up, two down. All the area is the same.
0:04:28 > 0:04:34So buyers in the area will be aware of the layout, but what exactly does the house need?
0:04:34 > 0:04:40This property needs a full renovation - a new kitchen, a new bathroom. It needs the full works.
0:04:40 > 0:04:46Let's talk money now. How much could someone make here? First, on rental.
0:04:46 > 0:04:53In a good condition, we are looking at a region of £400 per calendar month up to £425.
0:04:53 > 0:04:57And if renovated, how much could a re-sale achieve?
0:04:57 > 0:05:01I would put this on the market for £69,950.
0:05:01 > 0:05:03A nice enough little property,
0:05:03 > 0:05:09but whoever bought this is going to have to sort out the layout issues at the back.
0:05:09 > 0:05:15That kitchen area just doesn't work. Let's find out who that was when it went under the hammer.
0:05:17 > 0:05:20We're going to Bentley in Doncaster now
0:05:20 > 0:05:24and this is a two-bedroom, extended semi-detached house. Start me at 35?
0:05:24 > 0:05:29£35,000. £35,000 sat down. At 36 anywhere?
0:05:29 > 0:05:3136. 37?
0:05:31 > 0:05:3437. 38. 39.
0:05:34 > 0:05:3740. 41.
0:05:39 > 0:05:4142. 43?
0:05:41 > 0:05:4542 and a half. 43 shall we say...?
0:05:45 > 0:05:4743 and a half.
0:05:47 > 0:05:5044. 44 and a half?
0:05:50 > 0:05:5644 and a half. 45. It's against you now at 45,000. 45 and a half?
0:05:56 > 0:05:59Yes, 45 and a half. 46.
0:05:59 > 0:06:0246 and a half? 46 and a half. 47?
0:06:02 > 0:06:04Thank you. 47. It's against you now.
0:06:04 > 0:06:0747 and a half. 48?
0:06:07 > 0:06:0948,000. 48 and a half?
0:06:09 > 0:06:12No. For the first time at 48,000...
0:06:12 > 0:06:18The second time at £48,000. The third and last time at £48,000...
0:06:18 > 0:06:20It's yours, sir. Well done.
0:06:20 > 0:06:23'The man who snapped up this lot for 48,000 was Graham.
0:06:23 > 0:06:28'He owns a haulage company and came along for a chat with two of his children -
0:06:28 > 0:06:31'Mason on the left here and Jordan in the middle.
0:06:31 > 0:06:38'But they weren't just here for the ride. They had a vested interest in the property. More of that later.
0:06:38 > 0:06:40'I spoke to Graham to hear more.'
0:06:40 > 0:06:42- Graham, congratulations.- Thank you.
0:06:42 > 0:06:47- Why did you want to buy this house? - We'd been looking for something for a while.
0:06:47 > 0:06:52This seemed close enough to where we live. We went to the auction and bought it.
0:06:52 > 0:06:56Buying it as an investment or somewhere to live?
0:06:56 > 0:06:58Really just an investment.
0:06:58 > 0:07:04In the first instance, we thought we'd buy it just to overhaul it and sell it.
0:07:04 > 0:07:10- What prompted you into property developing?- We've had a little bit of an association with our business.
0:07:10 > 0:07:14We've always wanted to do it and I've never had enough time.
0:07:14 > 0:07:19But things have changed recently, so I thought this was the time to do it.
0:07:19 > 0:07:22- Why this particular property? - It seemed a good price
0:07:22 > 0:07:27and pretty close to where we live, so it's accessible very quickly.
0:07:27 > 0:07:33- It was just the right money.- It's a good little property. Some quirks need to be sorted out.- Yeah.
0:07:33 > 0:07:35But in general, it's a good place.
0:07:35 > 0:07:41'The house does have its plus points, but this rear layout isn't one of them.
0:07:41 > 0:07:47'Graham will re-model the downstairs floor plan into a more practical area, starting with the kitchen.'
0:07:47 > 0:07:51- That is clearly the biggest, weirdest bit.- Oh, yeah.
0:07:51 > 0:07:58The house is pretty straightforward. It's just clean it up, tidy up, new carpets, a few doors.
0:07:58 > 0:08:02That'll be simple. But back there is just a bit more...
0:08:02 > 0:08:05We can tidy it up and leave it like it is. That's simple.
0:08:05 > 0:08:11But if we were keeping the house, we would definitely go for making the kitchen bigger,
0:08:11 > 0:08:14a bigger utility room, just so as it would be better.
0:08:14 > 0:08:19'Major alterations would require planning permission and building regulations,
0:08:19 > 0:08:24'but would be worth the effort if it improves the rear layout.
0:08:24 > 0:08:27'Graham is not taking on this project alone.'
0:08:27 > 0:08:32My three children will help us. They've put some of their savings into it.
0:08:32 > 0:08:37- So they've got a vested interest in it.- How old are they?- 18, 16 and 15.
0:08:37 > 0:08:41- They've put some of their savings into the house?- Yeah.- Tell me more.
0:08:41 > 0:08:46They like to save. They're very canny in what they do with their money.
0:08:46 > 0:08:50They're not earning a lot of money in the bank at the moment.
0:08:50 > 0:08:56As we said we'd buy this, it seemed a way of earning some money faster for them, or hopefully.
0:08:56 > 0:09:04- And how much money have they each put in?- They've put 12.5% of the purchase price in between them.
0:09:04 > 0:09:08- Between them, they've put in about £5,000?- Yeah.- Quite a chunk?- Yeah.
0:09:08 > 0:09:12- They've bought a share of the building.- They've bought work.
0:09:12 > 0:09:18- Right. How do you mean?- They're going to have to help us do it to get their money back, aren't they?
0:09:18 > 0:09:21Because they're getting to a working stage of their life,
0:09:21 > 0:09:26we're trying to get them into something that could be a future for them.
0:09:26 > 0:09:32- Property renovations might be that. - Right.- They're eager to make money. They're eager.
0:09:32 > 0:09:38'His children have earned the money by working for their dad's company and put their savings into this.
0:09:38 > 0:09:42'To find out more, I met the new investors in the garden.'
0:09:42 > 0:09:47- So, Mason, Jordan, you're two members of the three children buying team.- Yeah.
0:09:47 > 0:09:53- How did this all come about? - Mum and Dad came to us and said, "We've bought a property.
0:09:53 > 0:09:59"Do you want to put some of your money in towards it, so you can have some more money later on?"
0:09:59 > 0:10:04Our money in the bank were not really doing anything. The interest has gone down.
0:10:04 > 0:10:07So it was just put money in to invest really.
0:10:07 > 0:10:11- Mason, what were your thoughts? - I thought it were a good idea.
0:10:11 > 0:10:16Rather than keeping money in the bank, you can invest it in something else.
0:10:16 > 0:10:19Hopefully with profits, rather than sat around.
0:10:19 > 0:10:23# But he's got high hopes
0:10:23 > 0:10:26# He's got high hopes... #
0:10:26 > 0:10:33'Mason and Jordan have got their financial heads screwed on and are keen to get their money working hard
0:10:33 > 0:10:39'but it's also a chance for them to discover the pitfalls of property ownership.'
0:10:39 > 0:10:42It's a good thing to get a bit of experience with houses,
0:10:42 > 0:10:47so when you get older and need to buy one, you know a bit about it.
0:10:47 > 0:10:51'Wise words from our budding young entrepreneurs. I'm very impressed.
0:10:51 > 0:10:54'The property world had better watch out.
0:10:54 > 0:10:59'But there's a long way to go before they'll see a return on their investment.
0:10:59 > 0:11:01'It's down to how much they spend.'
0:11:01 > 0:11:05The budget is very dependent on how intense the kitchen gets.
0:11:05 > 0:11:11If we've got to build new walls, that'll be more expensive than we thought.
0:11:11 > 0:11:16But I'm thinking we should easily do it between maybe £10,000, £12,000.
0:11:16 > 0:11:19That depends on the extension, of course.
0:11:19 > 0:11:23- What kind of timescale?- We're a bit held up with the builders maybe.
0:11:23 > 0:11:27I'm thinking 12, 16 weeks if we can get people on site quick enough.
0:11:27 > 0:11:31You must be very keen that this is successful for lots of reasons.
0:11:31 > 0:11:36It's got to be. They'll be disappointed if they don't make money.
0:11:36 > 0:11:42- I hope it's a big success for you. I look forward to seeing how you all get on.- Great. Thank you.
0:11:42 > 0:11:48What a great idea and how smart of the kids to get involved in property at such an early age!
0:11:48 > 0:11:53Still, the pressure is now on to make this a success.
0:11:53 > 0:11:57How are they going to get on? You can find out later in the show.
0:12:00 > 0:12:07This is Camberwell in south-east London. The nearest railway station is a mile away at Denmark Hill
0:12:07 > 0:12:09with good links to central London.
0:12:09 > 0:12:13The area is rich with Georgian and Victorian housing stock.
0:12:13 > 0:12:19This part of Camberwell also has links to the early days of silent film.
0:12:19 > 0:12:23This is Clockwork Studios, previously known as The Fun Factory.
0:12:23 > 0:12:27It was run by Fred Karno, a notable music hall comedian,
0:12:27 > 0:12:33and he trained the likes of Charlie Chaplin and Stan Laurel of Laurel and Hardy, of course,
0:12:33 > 0:12:35in this very building.
0:12:35 > 0:12:37# Welcome to the house of fun... #
0:12:37 > 0:12:42The Fun Factory was closed in the 1920s and, for the last 25 years,
0:12:42 > 0:12:45was used as a studio for local artists.
0:12:45 > 0:12:51Let's hope some of that creative flair is in store at the auction lot I'm here to see.
0:12:51 > 0:12:56It's gorgeous with those corbels and that really nice cornice above the window.
0:12:56 > 0:13:01And you've got these black and white tiles. It's so reminiscent of the Victorian era.
0:13:01 > 0:13:06I know it's a three-bedroom cottage, but it's terribly elegant, isn't it?
0:13:08 > 0:13:13This charming house had an auction guide price of 260,000.
0:13:14 > 0:13:18How can you be so wrong? Inside, elegant it ain't!
0:13:18 > 0:13:23Look at these cork tiles wrapped all over the walls. It's suffocating.
0:13:23 > 0:13:26I've seen these laid on the floors, but not like this.
0:13:26 > 0:13:30But what I do love is this gorgeous, curved end.
0:13:30 > 0:13:33Look, it just makes you want to give it a hug!
0:13:33 > 0:13:37This house is packed with hidden little features.
0:13:37 > 0:13:43You've got that beautiful window in the sitting room, complete with lovely old wooden shutters.
0:13:43 > 0:13:48You've got the elegant fireplace there, deep skirting boards everywhere.
0:13:48 > 0:13:51It's fabulous, this house. There's so much more to it.
0:13:51 > 0:13:55I would love to just get my hands on this, tear it all apart
0:13:55 > 0:13:59and just put back the love and character it deserves.
0:13:59 > 0:14:03But I think I'd have to start with that kitchen!
0:14:09 > 0:14:13Yes, the kitchen is small and disappointing
0:14:13 > 0:14:17and needs not just an injection of love, but a complete rethink.
0:14:17 > 0:14:22Also on this floor, there's another reception room and a downstairs toilet.
0:14:22 > 0:14:26There's a lot of character here, but parts of it are dark and oppressive.
0:14:30 > 0:14:34Upstairs, there are three double bedrooms, all a good size
0:14:34 > 0:14:40with lovely sash windows and original fireplaces, but again there's work to be done.
0:14:40 > 0:14:44Something is missing up here. You're right - no bathroom!
0:14:44 > 0:14:48Outside, you've got a good, wide, decent-sized garden
0:14:48 > 0:14:51which is really nice to see in a London property,
0:14:51 > 0:14:56so with planning permission, you could think about extending into this side area.
0:14:56 > 0:15:00Let's face it. This lean-to at the back has to come down.
0:15:00 > 0:15:05However, look at this. It's the only bathroom in the property!
0:15:05 > 0:15:09And, um, hello! Well, I've seen hot tubs outside, but not baths!
0:15:09 > 0:15:11# I'm out in the cold
0:15:13 > 0:15:16# Body and soul... #
0:15:16 > 0:15:21Yes, no toilet here either and this bathroom is pretty basic.
0:15:21 > 0:15:24It comes with a serving hatch into the kitchen,
0:15:24 > 0:15:28so you could at least be served with a hot cup of tea to warm you,
0:15:28 > 0:15:32but this set-up isn't acceptable for today's modern living.
0:15:32 > 0:15:36An alternative will need to be found by adding a two-storey extension
0:15:36 > 0:15:39or by losing one of the bedrooms
0:15:39 > 0:15:44to accommodate a bathroom. Overall, there's plenty of potential here.
0:15:44 > 0:15:47What does the local estate agent make of it?
0:15:47 > 0:15:53It wouldn't take a huge amount to return it to a decent condition, but one thing is quite important.
0:15:53 > 0:15:57That's to put the bathroom back upstairs.
0:15:57 > 0:16:00Having bathrooms downstairs can be difficult.
0:16:00 > 0:16:02It makes a property less saleable.
0:16:02 > 0:16:06Is it perhaps worth extending the house to accommodate a bathroom?
0:16:06 > 0:16:10I'm not sure whether I personally would do that.
0:16:10 > 0:16:15I'd like to have a nice garden, but you'd lose a bedroom, so that's something to consider.
0:16:15 > 0:16:18What sort of rent could you achieve here?
0:16:18 > 0:16:23Once restored and refurbished, depending on the quality of the refurb,
0:16:23 > 0:16:29you're probably looking at somewhere in the region of £1,300 to £1,400 per calendar month.
0:16:29 > 0:16:36And what kind of resale value could you hope to achieve for a house that was guided at 260,000?
0:16:36 > 0:16:40Once the refurb has been done as a two-bed with a bathroom upstairs,
0:16:40 > 0:16:43I would value it at circa 425,000.
0:16:43 > 0:16:49So bought at the right price, you could afford to spend some money here and still see a decent return.
0:16:49 > 0:16:54Let's face it. This cottage just needs gutting and a complete overhaul.
0:16:54 > 0:16:58The outside bathroom is a real no-no and although you'll lose a bedroom,
0:16:58 > 0:17:02it definitely needs to be moved inside and upstairs,
0:17:02 > 0:17:07so who was ready to take on this Camberwell cottage? Let's find out when we head to auction.
0:17:11 > 0:17:15Lot 15, really attractive, semi-detached, three-bed property.
0:17:16 > 0:17:213 anywhere? How much...? 290. 290 in the front.
0:17:21 > 0:17:23295 anywhere?
0:17:23 > 0:17:27I've got it in the room, 295, sitting down.
0:17:27 > 0:17:29300?
0:17:29 > 0:17:31296, yeah? 296.
0:17:31 > 0:17:35You're here. 297. 298, sir?
0:17:35 > 0:17:37299.
0:17:38 > 0:17:40300.
0:17:40 > 0:17:43301. 302.
0:17:43 > 0:17:44303?
0:17:45 > 0:17:47You're together, yeah? 303.
0:17:47 > 0:17:53Sometimes it's amazing. 303. I should never assume. 304...?
0:17:53 > 0:17:55Ah, Geoff, 304. At last!
0:17:55 > 0:17:59305. 306 on Geoff's phone...?
0:18:00 > 0:18:02306.
0:18:02 > 0:18:04307.
0:18:04 > 0:18:06308 on the phone.
0:18:06 > 0:18:08309 in the room.
0:18:08 > 0:18:11310 on the phone.
0:18:11 > 0:18:15Yes or no? If not, 309 in the room.
0:18:15 > 0:18:17First time. Second time.
0:18:17 > 0:18:21Third and last time, if you're all done, you're going to lose it...
0:18:21 > 0:18:24Sold - 309. Well done.
0:18:25 > 0:18:30'The final bid of 309,000 was made by London-based architect David
0:18:30 > 0:18:33'with a bit of help from his friend Ruben.
0:18:33 > 0:18:38'I met David in Camberwell to find out about the plans for his new property.'
0:18:39 > 0:18:45- David, congratulations. This is fantastic news.- Thank you. - You've got a great house here.
0:18:45 > 0:18:49What is the story and why did you want to buy this at auction?
0:18:49 > 0:18:52Well, I sold my house last year
0:18:52 > 0:18:57and decided with my friend Ruben, long-term friend
0:18:57 > 0:18:59and sort of business partner,
0:18:59 > 0:19:07that we would buy a place and try and do it up and maybe live in it or sell it in the future,
0:19:07 > 0:19:12so we went along to our first auction, not imagining we would ever end up with a house,
0:19:12 > 0:19:14but came away with this place.
0:19:14 > 0:19:18It was your first auction? You didn't intend on buying on the day?
0:19:18 > 0:19:24Well, we had seen this house in the catalogue. We had both independently spotted this one house.
0:19:24 > 0:19:31We had a look at it on a Saturday, then realised the auction was on the Monday, so we went along unprepared.
0:19:31 > 0:19:35You had been inside the house, you'd seen inside it?
0:19:35 > 0:19:40Yes, we trooped around the house with lots of other people and loved it, really liked it,
0:19:40 > 0:19:42and thought it was worth a try.
0:19:42 > 0:19:47# I love you Yes, I do... #
0:19:47 > 0:19:49'This is a place you can fall in love with,
0:19:49 > 0:19:54'but much of that is to do with its potential and what it once was.
0:19:54 > 0:19:59'I wondered why David felt he might be the man to bring the love back to it?'
0:19:59 > 0:20:04- What do you do, David? - I'm an architect.- So you're in this business anyway?- Yes.
0:20:04 > 0:20:07I do this for clients every day.
0:20:07 > 0:20:12I work on old houses and restore them for clients and I thought,
0:20:12 > 0:20:14"Why not do it for myself?"
0:20:14 > 0:20:20I can be my own client, I can make all my own design decisions quickly and just get on with it.
0:20:20 > 0:20:25- You really are the perfect new owner for this lovely cottage. - Well, I hope so.
0:20:25 > 0:20:29'David is unsure whether this will be his and Ruben's new home,
0:20:29 > 0:20:32'along with some friends, or a development project.
0:20:32 > 0:20:36'It depends on whether he can turn his plans into reality.'
0:20:36 > 0:20:40What are the major changes you'll be doing here?
0:20:40 > 0:20:46OK, well, the first thing is to get as much natural light into it as possible.
0:20:46 > 0:20:51The entrance hall, I'm going to take the roof off and put a glass roof on there,
0:20:51 > 0:20:55so you'll get daylight into this area here.
0:20:56 > 0:21:04To knock out the whole side of the house to put utility rooms and a shower room on the ground floor.
0:21:04 > 0:21:10And the rear of the house, to knock it all into one big, open-plan kitchen-dining-living space.
0:21:10 > 0:21:14And the rooms at the front, I'm going to keep them separate,
0:21:14 > 0:21:19so you could use one of them as an additional living room and another as a bedroom,
0:21:19 > 0:21:22put a bathroom upstairs and retain two bedrooms,
0:21:22 > 0:21:27so it would become a three/four-bedroom house.
0:21:27 > 0:21:30- Will you be using any new, modern materials?- Yes.
0:21:30 > 0:21:35What I'd like to do is to contrast the existing and the new.
0:21:35 > 0:21:38So as you go through to the back of the house,
0:21:38 > 0:21:44the new extension is going to be timber-framed and timber-clad on the outside
0:21:44 > 0:21:50with zinc kind of detailing and a grass or a sedum-planted roof.
0:21:50 > 0:21:53What sort of budget have you got for the work?
0:21:53 > 0:21:59I think it's going to cost us about 100, 110, 120 maybe,
0:21:59 > 0:22:02depending on if I can control myself with the finishes.
0:22:02 > 0:22:09- David, it's going to be brilliant seeing the outcome of this. Well done.- Thank you very much.
0:22:14 > 0:22:17David has got some fantastic plans for this place
0:22:17 > 0:22:21and it should be a real show home for his architect business,
0:22:21 > 0:22:27but will his plans get passed and will David and his business partner Ruben end up living here?
0:22:27 > 0:22:31Or will they be tempted to go for the money and sell it on?
0:22:31 > 0:22:34Find out what happens later on in the programme.
0:22:35 > 0:22:40'Still to come, in Norfolk, a crack in the wall doesn't bode well.'
0:22:40 > 0:22:44Something like this could mean rebuilding the whole end wall.
0:22:46 > 0:22:50'In Camberwell, London, David had some unwelcome residents.'
0:22:50 > 0:22:55A neighbour called me to say that the house had been squatted.
0:22:56 > 0:23:02'But first, in Doncaster, were Mason and Jordan hands-on with the renovation?'
0:23:02 > 0:23:05They've just done what they've needed to do.
0:23:11 > 0:23:16It's back now to Bentley near Doncaster where earlier,
0:23:16 > 0:23:20Graham bought this two-bed house at auction for 48,000.
0:23:20 > 0:23:26He runs a haulage business, but he bought this as an investment project to do up and sell on.
0:23:26 > 0:23:32But he wasn't alone on it as his three kids stumped up some of the 48,000.
0:23:32 > 0:23:36Two of them are here - Jordan on the left and Mason on the right.
0:23:38 > 0:23:44Because they're getting to a working stage of their life now, we're trying to get them into something
0:23:44 > 0:23:49that could be a future for them. Property renovations might be that.
0:23:49 > 0:23:55Help with finances wasn't the only education Graham felt they needed.
0:23:55 > 0:23:59He also expected them to help with ripping out, renovating, decorating
0:23:59 > 0:24:02and sorting out a really odd kitchen layout.
0:24:04 > 0:24:10Well, six months later, we've returned and the outside is looking very presentable.
0:24:11 > 0:24:14The front living room is much cleaner and modern
0:24:14 > 0:24:18with a striking feature wall and wood flooring.
0:24:19 > 0:24:21And the kitchen?
0:24:22 > 0:24:29Well, it's far more workable and spacious with lots of lovely natural light flooding in.
0:24:29 > 0:24:31This is the kitchen.
0:24:31 > 0:24:35It was a kitchen before, but it was about two-thirds of the size,
0:24:35 > 0:24:41so we knocked the old outside wall down and built a new extension to give it a lot more space.
0:24:41 > 0:24:47We've just got a few finishing touches, but I'm quite pleased with the kitchen.
0:24:47 > 0:24:51The layout still features a bathroom downstairs at the back,
0:24:51 > 0:24:57but with new units, tiling and flooring, it's definitely a nicer place for a soak.
0:24:57 > 0:25:00Upstairs, the rear bedroom has been made over
0:25:00 > 0:25:03and now has a useful addition.
0:25:03 > 0:25:07We've re-plastered everywhere, skimmed the ceilings, coving.
0:25:07 > 0:25:12We thought it lacked a bit of something and so we put the en-suite in.
0:25:12 > 0:25:18In the corner, there was a cupboard, so we just ripped that out and put the shower in there.
0:25:18 > 0:25:23Sink and basin, put a new floor in and studded wall, there we are - en-suite.
0:25:23 > 0:25:27With the front bedroom also in the same style as the back
0:25:27 > 0:25:31and a garden spruced up with new fencing and a lick of paint,
0:25:31 > 0:25:35I reckon this is now an attractive proposition.
0:25:35 > 0:25:39But it's the new kitchen extension that really steals the show.
0:25:39 > 0:25:45It makes the whole house much more appealing and surely raises the value overall,
0:25:45 > 0:25:52so hopefully, Mason, Jordan and Connor can look forward to getting a return from their investment.
0:25:52 > 0:25:55But were they equally hands-on with the renovation?
0:25:55 > 0:25:59They've just mucked in and done what they've needed to do.
0:25:59 > 0:26:06They've enjoyed it to some degree, but it's taken a lot longer than they thought it was going to do as well.
0:26:06 > 0:26:11For the last two weeks, we've been here every day from nine till five o'clock at night,
0:26:11 > 0:26:13trying to finish it all off.
0:26:13 > 0:26:18I've learnt tiling, putting wood floors down and everything,
0:26:18 > 0:26:20plastering as well sometimes.
0:26:21 > 0:26:26I did a lot of painting. I did the painting outside on the new extension.
0:26:26 > 0:26:29I painted all that with my mum.
0:26:29 > 0:26:34I cleaned up the house and demolished it to start off with. The kitchen, I took that down.
0:26:34 > 0:26:37Well, it seems the kids have definitely pitched in.
0:26:37 > 0:26:41Jordan has had to split her time with her university studies,
0:26:41 > 0:26:45but this experience has certainly broadened their DIY skills.
0:26:45 > 0:26:48# The kids are all right
0:26:48 > 0:26:52# The kids are all right... #
0:26:52 > 0:26:56There are still some finishing touches to do around the house,
0:26:56 > 0:26:58but with an interior from new,
0:26:58 > 0:27:05including re-plastering, rewiring, new central heating and not forgetting that kitchen extension,
0:27:05 > 0:27:09did the team hit their target timescale for the renovation?
0:27:09 > 0:27:15No, we didn't stick to the timescale. We thought we'd be about four months and we've gone over that.
0:27:15 > 0:27:18It was due mainly to the bad weather.
0:27:18 > 0:27:24Only being able to work weekends for some of the people that were helping us, so it just dragged on a bit.
0:27:24 > 0:27:29But, you know, we're close now, so we're near the end.
0:27:29 > 0:27:35With the family funding the renovation from their savings, did the delay over-extend their budget?
0:27:35 > 0:27:39The original budget we said would be between 10,000 and 12,000.
0:27:39 > 0:27:46I think we're very close on 13, maybe hovering a few hundred just over, but we're not far away.
0:27:46 > 0:27:50And with what we've had to do, we haven't done too badly.
0:27:50 > 0:27:54Add that £13,000 to their purchase price of £48,000
0:27:54 > 0:27:58and Graham's family have spent a total of 61,000.
0:27:58 > 0:28:04The question is, should the kids have kept their money locked away or was it a wise investment?
0:28:06 > 0:28:10We asked two local estate agents what they thought of the renovation
0:28:10 > 0:28:14and the family's 61 grand investment.
0:28:15 > 0:28:19It's nicely finished throughout, a very modern approach.
0:28:19 > 0:28:23It'll definitely appeal to a lot of buyers at the moment.
0:28:23 > 0:28:27Nicely finished bathroom, nice to see a nice en-suite up there
0:28:27 > 0:28:31because a lot of these properties do have the downstairs bathroom.
0:28:31 > 0:28:36And the kitchen. It's all nicely done, very clean and fresh.
0:28:36 > 0:28:43It's a nice contemporary style. Well decorated. Easy to move into and easy to maintain, I'd think.
0:28:43 > 0:28:47I like the kitchen and I like the layout.
0:28:47 > 0:28:51'But will it generate a decent return for the family?
0:28:51 > 0:28:56'Graham and his kids have spent £61,000 on the property
0:28:56 > 0:29:02'and aim to sell it on, so what could it go for on the market?'
0:29:02 > 0:29:06I would place it on the market up to a maximum of £80,000.
0:29:06 > 0:29:11For the sales market, a valuation of £69,995, offers in the region of,
0:29:11 > 0:29:17with a view to accepting £65,000-£70,000.
0:29:17 > 0:29:24We were hoping to achieve 75 and would be happy with low 70s, so I'm quite happy with that.
0:29:24 > 0:29:30'Those valuations could land the family a pre-tax profit of £4,000-£19,000,
0:29:30 > 0:29:38'but with a rental income of up to £425 per calendar month, offering a healthy 8.5% annual yield,
0:29:38 > 0:29:42'could the team be swayed by the rentals?'
0:29:43 > 0:29:49I think we will put it up for sale and see what happens for maybe one or two months.
0:29:49 > 0:29:53And if it doesn't go, then we'll rent.
0:29:53 > 0:29:59'It's been a slightly longer project than expected, but hopefully Graham and the kids can put some cash back
0:29:59 > 0:30:04'into their savings soon, but this is about more than raising money.
0:30:04 > 0:30:09'It was to give Mason, Jordan and Connor experience of financial management.
0:30:09 > 0:30:15- 'And I reckon it's given them a taste for more.'- This is only the first. Hopefully, we'll do some more
0:30:15 > 0:30:20and they'll get done quicker. You learn from your mistakes.
0:30:20 > 0:30:23# The kids are all right
0:30:23 > 0:30:28# The kids are all right. #
0:30:33 > 0:30:41'Welcome to Attleborough in Norfolk. It's a busy little market town, 15 miles from Norwich.'
0:30:44 > 0:30:50I'm here to see a property right on the high street - a three-bed end of terrace
0:30:50 > 0:30:54at a guide price of £70,000-£80,000. Let's take a look.
0:30:54 > 0:30:57'it's right by Attleborough high street.
0:30:57 > 0:31:03'There's plenty of hustle and bustle. Put plainly, it's noisy. Very noisy.'
0:31:05 > 0:31:08# Hush hush
0:31:10 > 0:31:13# Early in the morning Late in the evening... #
0:31:15 > 0:31:17Ooh.
0:31:17 > 0:31:22Nice-sized living room. I like that. Big, high ceiling. Nice fireplace.
0:31:22 > 0:31:27A good-sized room. Through to the rear of the property.
0:31:27 > 0:31:30A rear sitting room. Looks like a fire there.
0:31:30 > 0:31:35Then it gets a bit bad as you travel towards the rear.
0:31:35 > 0:31:42Fairly traditional layout. The kitchen's in need of refurbishment and on to the only loo, bathroom,
0:31:42 > 0:31:45in the whole property. Bit of work to be done.
0:31:45 > 0:31:50Let's take a look upstairs. The jury's out on this one.
0:31:53 > 0:31:59'Upstairs are two bedrooms. The master one looks out onto the front,
0:31:59 > 0:32:04'so I'd recommend double glazing. However, as noisy as the road is,
0:32:04 > 0:32:09'it's nothing compared to the Paisley pattern inside! Traffic may hurt my ears,
0:32:09 > 0:32:12'but this hurts my eyes.'
0:32:12 > 0:32:15# Cover my eyes
0:32:15 > 0:32:19# Dangerous colours and shapes
0:32:20 > 0:32:23# Ferocious designs... #
0:32:24 > 0:32:30Very intriguing layout up here. One bedroom at the front there, another bedroom here.
0:32:30 > 0:32:32It's nice to have original features.
0:32:32 > 0:32:38Sink - very odd. But what's really unusual is you come through here to another set of stairs
0:32:38 > 0:32:41up to another floor.
0:32:44 > 0:32:49Oh. Up here, a really nice-size attic room. Got a dormer window.
0:32:49 > 0:32:55It's all a bit shabby, but a really nice-sized space. Gable wall here at the end of the property.
0:32:55 > 0:33:00Hm. You see the plaster - that's all coming off. Not too much to worry about.
0:33:00 > 0:33:04But...you just get a feeling about something.
0:33:04 > 0:33:10There's something about that wall I don't think is quite right. I need to go outside and check.
0:33:12 > 0:33:18Actually, you know what? Now you look for it, you can see what's going on here.
0:33:18 > 0:33:23See how this gable end here is coming away from the building?
0:33:23 > 0:33:27My guess is that there's an internal wall and an external wall.
0:33:27 > 0:33:30Between them, metal ties hold the two together.
0:33:30 > 0:33:35Over time those ties rust and, in extreme cases, they break.
0:33:35 > 0:33:39That basically means this end wall is falling away from the house.
0:33:39 > 0:33:43What's the solution? You can get special things to pull it back,
0:33:43 > 0:33:48but more often than not this could mean rebuilding the whole end wall.
0:33:48 > 0:33:51That's not going to be cheap.
0:33:51 > 0:33:54# Money, money, money, money
0:33:54 > 0:33:56# Money... #
0:33:56 > 0:34:00'On the plus side, there's a decent-sized back garden
0:34:00 > 0:34:05'and a bonus as it leads out onto a residents' car park. Very handy.
0:34:05 > 0:34:10'The guide price for this property was £70,000-£80,000.
0:34:10 > 0:34:17'Time to find out what a local estate agent makes of this three-bed end of terrace.'
0:34:17 > 0:34:21It's cracking. There's a lot of potential.
0:34:21 > 0:34:24It's going to appeal to a wide variety of buyers.
0:34:24 > 0:34:30'Cracking is one way to describe the place, but what should the buyer do about that peeling gable wall?'
0:34:30 > 0:34:37There's a problem with the gable end. I would advise any potential buyer to get that checked out
0:34:37 > 0:34:39via a structural surveyor.
0:34:39 > 0:34:46'If that wall was fixed and the entire house renovated, what return could the owner expect?'
0:34:46 > 0:34:51It's a very buoyant rental market. When done to a reasonable standard,
0:34:51 > 0:34:54I'd expect to achieve in the region of £575 per calendar month.
0:34:54 > 0:35:02Once it's been renovated to a decent standard, I would expect somewhere in the region of £120,000.
0:35:04 > 0:35:09Well, not a bad-sized space, but not really an ideal location,
0:35:09 > 0:35:11surrounded by commercial units,
0:35:11 > 0:35:18but by far the most worrying thing is that wall. It's a real unknown and could be a major expense.
0:35:18 > 0:35:22I think it's buyer beware on this. Let's see who bought it at auction.
0:35:22 > 0:35:2680 for it? 70 to start? £70,000 bid.
0:35:26 > 0:35:2872 here, 72. 74.
0:35:28 > 0:35:31At 74. 75.
0:35:31 > 0:35:3476. 77 for you, sir?
0:35:34 > 0:35:3776 here. 77 at the back. 77.
0:35:37 > 0:35:4178. At 78. 79 for you at the back, sir?
0:35:41 > 0:35:43It's cheap. 79,000.
0:35:43 > 0:35:4780 for you, sir. At £80,000. At £80,000.
0:35:47 > 0:35:4981.
0:35:49 > 0:35:53At 82,000. 83. 84.
0:35:53 > 0:35:5884 and a half. 85 for you, sir. At 85,000.
0:35:58 > 0:36:0185 and a half. 86.
0:36:01 > 0:36:03£86,000. You're shaking your head.
0:36:03 > 0:36:08At 86...250. 86 and a half.
0:36:08 > 0:36:1186,750.
0:36:11 > 0:36:1287,000.
0:36:14 > 0:36:1787,250. 87 and a half.
0:36:19 > 0:36:2187,750.
0:36:21 > 0:36:2388,000.
0:36:23 > 0:36:2588 and a half. 89.
0:36:25 > 0:36:29Throw it up to 90. 90 with me? 90,000 bid.
0:36:29 > 0:36:3392 and a half I'm now bid. At 92 and a half.
0:36:33 > 0:36:38Shaking your head. For the first time. For the second time.
0:36:38 > 0:36:45- 92 and a half, third and final time. All done?- 'It was Greg who made the successful bid of £92,500.
0:36:47 > 0:36:51'Greg's a local lad who runs a furniture shop in town.
0:36:51 > 0:36:56'He bought this house with some financial help from his parents.'
0:36:56 > 0:36:59- Greg, congratulations.- Yeah!
0:36:59 > 0:37:03That's an interesting response. How do you feel about buying it?
0:37:03 > 0:37:07Well, everything starts now, really, to be honest with you.
0:37:07 > 0:37:12That's the start of a long period of work to come.
0:37:12 > 0:37:17- Why did you want to buy it?- To get my first step on the property ladder.
0:37:17 > 0:37:23And I'm in business. I've got a little shop down the road, sells second-hand furniture.
0:37:23 > 0:37:28I've had it two years now. Hopefully, if the council let us,
0:37:28 > 0:37:34we can maybe use the downstairs as the shop and upstairs as living accommodation.
0:37:34 > 0:37:38So the idea would be to convert downstairs into a commercial unit?
0:37:38 > 0:37:45That is our first objective. It's to get it sound and get the downstairs open as a shop
0:37:45 > 0:37:48and get the place earning money.
0:37:48 > 0:37:52- You rent your shop?- I do and that is another reason.
0:37:52 > 0:37:58Because it's dead money. You're always giving money away. Whereas this is an investment.
0:37:58 > 0:38:04'Before opening his shop, Greg will have to apply to the council for business usage.
0:38:04 > 0:38:10'That's not a done deal at all, but if successful he'll have a prime business location
0:38:10 > 0:38:15'in the heart of the high street. But he'll need to fix that wall.'
0:38:15 > 0:38:20# And I can't hold on forever
0:38:20 > 0:38:23# Even walls fall down... #
0:38:23 > 0:38:28- Clearly, the wall, the gable end... - That's something we were aware of.
0:38:28 > 0:38:35I've been led to believe that it is basically not subsidence or a settlement issue.
0:38:35 > 0:38:40It's what's holding the clay inside and the external brick wall together that's corroded.
0:38:40 > 0:38:45- What's the worst-case scenario? - Taking it down and rebuilding it.
0:38:45 > 0:38:49We have planned for that at this moment in time.
0:38:49 > 0:38:55Obviously, the upstairs isn't as important as ensuring the structural stability of the building is there
0:38:55 > 0:38:59and then trying to make sure we can open the shop up first,
0:38:59 > 0:39:03- which is where the money will be going before living above it.- Right.
0:39:03 > 0:39:08So do you have any idea how much it might cost to put that right?
0:39:08 > 0:39:13Potentially £20,000-£25,000 is one price I've been given at this moment in time.
0:39:13 > 0:39:17- A lot of money.- It is, but it's worth doing at the end of the day
0:39:17 > 0:39:23because it protects your investment, which is the most important thing.
0:39:23 > 0:39:27- What if you can't get change of use? - I've got a couple of options.
0:39:27 > 0:39:34Get the gable end done, contact some mortgage companies, get a buy to let mortgage, do it to a high standard,
0:39:34 > 0:39:39let it out to a family. It's a lovely family home.
0:39:39 > 0:39:43And the rentable value of it will more than cover the mortgage.
0:39:43 > 0:39:49First and foremost, I want to live here. I've lived in and around here all my life.
0:39:49 > 0:39:53I enjoy the job I do, which is a bonus as well.
0:39:53 > 0:39:58So, first and foremost, a shop and living accommodation.
0:39:58 > 0:40:02'Greg has no fixed budget yet as he still has to decide
0:40:02 > 0:40:10'on the best course of action for the gable end, but I'm sure he'll drive a hard bargain on costs.'
0:40:10 > 0:40:14What's the kind of timescale for sorting it out?
0:40:14 > 0:40:19I'm looking at 3-4 months to get the downstairs sorted out.
0:40:19 > 0:40:22As and when for the rest, I'm afraid.
0:40:22 > 0:40:27- So your budget at the moment doesn't include sorting out upstairs.- No.
0:40:27 > 0:40:34I've been stretched too far. I want to make sure we can achieve everything for the shop.
0:40:34 > 0:40:36There are quite a few risks.
0:40:36 > 0:40:41- Possibly. - How do you feel about that?
0:40:41 > 0:40:45As far as I'm aware, what we've done is put ourselves in a position
0:40:45 > 0:40:51where we've tried to ensure we've got a good investment at this moment that we can afford.
0:40:51 > 0:40:56We haven't overstretched ourselves so it's not that much of a risk.
0:40:56 > 0:40:58It is a calculated gamble.
0:40:58 > 0:41:04- Good. Well, I hope it pays off. - Thank you.- Congratulations. Good luck with it.- Yeah, cheers.
0:41:08 > 0:41:12Well, an interesting idea to run his business here,
0:41:12 > 0:41:18but I wonder if he's doing the right thing. For a start, getting change of use for the downstairs part.
0:41:18 > 0:41:25But by far the biggest issue is that wall and the unknown amount it'll take to sort it out.
0:41:25 > 0:41:30How's he going to get on? You'll have to join us later to find out.
0:41:33 > 0:41:39It's very easy to put things off until tomorrow. Delays can be expensive and time is money.
0:41:39 > 0:41:46So have our buyers been busy or let the grass grow under their feet? It's time to find out.
0:41:49 > 0:41:56'Earlier, we were in Camberwell where this wonderful looking mid-Victorian terrace sold
0:41:56 > 0:41:58'for £309,000.
0:41:59 > 0:42:04'David bought it, along with his friend and business partner, Ruben, to do it up
0:42:04 > 0:42:08'and live in or sell on. There was character a-plenty,
0:42:08 > 0:42:12'although out of kilter with the 21st century.
0:42:12 > 0:42:17'But it appears that David was the man to bring it up to date.'
0:42:17 > 0:42:21- What do you do?- I'm an architect. - So you're in this business.
0:42:21 > 0:42:27Yes. I do this for clients every day. You know, I work on old houses
0:42:27 > 0:42:31and restore them for clients. So why not do it for myself?
0:42:31 > 0:42:36'Well, as you can imagine, with a budget of up to £120,000 to spend on the house,
0:42:36 > 0:42:40'David had some grand plans to rejuvenate the place.
0:42:40 > 0:42:44'16 months later, the front has been spruced up
0:42:44 > 0:42:48'with fresh paint and new iron railings,
0:42:48 > 0:42:54'but there are signs that the makeover might not be complete yet, so let's step out to the back.
0:43:00 > 0:43:04'Wow! That has seen an amazing transformation. I love it.
0:43:04 > 0:43:11'A stunning extension has been built out over that old dining room, kitchen and outdoor bathroom
0:43:11 > 0:43:15'to create a truly magnificent living space.'
0:43:26 > 0:43:30Well, this was the original dining room at the back of the house.
0:43:30 > 0:43:32Very dark space.
0:43:32 > 0:43:39That's the original window. We built the kitchen around it with flush cupboards.
0:43:39 > 0:43:44This was the original side wall of the house, which we took out
0:43:44 > 0:43:48and glazed the roof, built right up to the next house.
0:43:48 > 0:43:51We tried for as much light as possible.
0:43:51 > 0:43:56And demolished the kitchen and bathroom that were here
0:43:56 > 0:44:01and built a full-width extension as far out as we could get into the garden
0:44:01 > 0:44:04to create a living area,
0:44:04 > 0:44:10sofas next to the kitchen dining space, for when we have friends over
0:44:10 > 0:44:15and family. We can basically just live in this room
0:44:15 > 0:44:18and also access the garden in summertime.
0:44:18 > 0:44:23'Accessing the garden can also be done through the bi-folding doors
0:44:23 > 0:44:27'installed in the now-extended back room.
0:44:31 > 0:44:37'Just around the corner, the cool, contemporary shower room was created out of the old toilet.
0:44:40 > 0:44:45'So far, everything is bright and modern and that's key to David's thinking.'
0:44:45 > 0:44:51Daylight is incredibly important in architecture and it brings spaces to life,
0:44:51 > 0:44:54it creates excitement and drama.
0:44:54 > 0:44:58'Unfortunately, just before any work was due to start,
0:44:58 > 0:45:02'there was some unwanted drama to contend with.'
0:45:02 > 0:45:06A neighbour called me to say that the house had been squatted.
0:45:06 > 0:45:12I came round and all the locks had been changed and a complete stranger answered the door. I couldn't get in.
0:45:12 > 0:45:19So that was a bit demoralising. We had to get a County Court order to have them evicted,
0:45:19 > 0:45:22which took about three months.
0:45:22 > 0:45:28'Once he was rid of the squatters, David got on with creating this stylish home.
0:45:28 > 0:45:33'The front living room is a store room at present and upstairs...
0:45:36 > 0:45:41'..the middle bedroom has been transformed into a very striking new bathroom.
0:45:42 > 0:45:47'The two bedrooms up here have been made attractive and comfortable,
0:45:47 > 0:45:53but just glance out of the rear bedroom window - David has created a rooftop garden
0:45:53 > 0:45:59- 'and while we're discussing the outside...'- One thing that is the same is we kept the tree.
0:45:59 > 0:46:03We pruned it back, chopped off some of the dead bits,
0:46:03 > 0:46:10and also saved some of the roses and the rhododendrons that were here before.
0:46:10 > 0:46:14But we completely re-landscaped it. We raised this area so it's flat
0:46:14 > 0:46:16and put a lawn here.
0:46:16 > 0:46:22In the sunken area by the house, we put a water feature
0:46:22 > 0:46:27which eventually will have a trickling water sound, hopefully, that you hear from inside.
0:46:27 > 0:46:33'Overall, there's no denying the style, elegance and wonderful open feel David has created here.
0:46:33 > 0:46:41'It is a truly spacious and light contemporary home, but did he splash more cash than he anticipated?'
0:46:42 > 0:46:47Originally, we envisaged spending probably a bit over £100,000.
0:46:47 > 0:46:49Maybe 110, something like that.
0:46:49 > 0:46:52We've probably spent more like 140.
0:46:52 > 0:46:57And there's still a few things to pay for as well,
0:46:57 > 0:47:02so, yeah, it ended up costing more, as it probably always does,
0:47:02 > 0:47:06but I think, we think it was probably worth it.
0:47:06 > 0:47:10'But will two local property experts agree?
0:47:10 > 0:47:14'David and Ruben bought the house for £309,000,
0:47:14 > 0:47:19'so their total outlay is a possible £449,000.
0:47:19 > 0:47:24- 'Do the estate agents think it's money well spent?' - Very nicely done.
0:47:24 > 0:47:29I'm very impressed by the garden family room.
0:47:29 > 0:47:34That really adds something to it. I very much appreciate the quality of the bathrooms.
0:47:34 > 0:47:40I was wowed by the property. A significant difference from before. Lovingly refurbished.
0:47:40 > 0:47:45'The light in the property is fabulous. Everywhere you go, lots of light, glass ceilings,
0:47:45 > 0:47:48'lots of windows and light.'
0:47:48 > 0:47:50And a fabulous garden.
0:47:50 > 0:47:54'For now this will be David and Ruben's home,
0:47:54 > 0:48:01'but bearing in mind that £449,000 spend, what sort of retail value could it achieve?'
0:48:01 > 0:48:07I would be very comfortable to put it on the market at £435,000-£440,000.
0:48:07 > 0:48:12I would market this property at £420,000.
0:48:12 > 0:48:18Well, it's lower than I thought, but I guess you don't make money easily in property,
0:48:18 > 0:48:25especially at the moment. We're not aiming to sell it. It's our home. We will live here.
0:48:25 > 0:48:27But, yeah, a bit disappointing.
0:48:27 > 0:48:34'With the estate agents estimating it could make a possible rental income of £2,000 per calendar month,
0:48:34 > 0:48:37'would David be happier doing that?'
0:48:37 > 0:48:42Rental is a possibility. That's quite a good return, actually,
0:48:42 > 0:48:45so that's something we might consider.
0:48:45 > 0:48:49'I get the feeling this project has had its ups and downs.
0:48:49 > 0:48:57'After creating such a wonderful home, would he ever be tempted to try it again?'
0:48:57 > 0:49:01I don't think anyone can quite appreciate at the outset
0:49:01 > 0:49:08how much stress and expense any house renovation project entails.
0:49:08 > 0:49:11And if you did, no one would embark on it!
0:49:11 > 0:49:17But we're at the end of that process now and we're very pleased with our new home.
0:49:18 > 0:49:23I'm sure when the wounds have healed in a few months' time,
0:49:23 > 0:49:27we might be looking to do it all over again!
0:49:32 > 0:49:39'It's back to Attleborough in Norfolk where this end of terrace house went to auction
0:49:39 > 0:49:45'with a guide price of £70,000-£80,000. Large rooms and a good garden were plus points,
0:49:45 > 0:49:51'but it had two significant negatives - the gabled wall that was possibly peeling away
0:49:51 > 0:49:55'and a really noisy traffic junction outside.
0:49:57 > 0:50:02'But they didn't deter local man Greg. He bought it for £92,500
0:50:02 > 0:50:06'and for him its busy location was ideal.'
0:50:07 > 0:50:12The idea would be to convert downstairs into a commercial unit?
0:50:12 > 0:50:19Yeah, that is our first objective. It's to get it sound and get downstairs open as a shop
0:50:19 > 0:50:21and get the place earning money.
0:50:21 > 0:50:26'Well, it would be perfect with all the passing trade.
0:50:26 > 0:50:31'11 months later, it looks like Greg has achieved one objective
0:50:31 > 0:50:35'in turning this into a new base for his second-hand business.
0:50:35 > 0:50:40'But enough window shopping. Let's see inside.
0:50:41 > 0:50:46'The former living room has been redecorated to be the main showroom,
0:50:48 > 0:50:54'while the back room also houses more of the furniture that Greg will be selling from here.'
0:50:58 > 0:51:03This is the front room, the first room we sorted out. We've done a little decorating.
0:51:03 > 0:51:08It was just the floor in that corner that wasn't too good.
0:51:08 > 0:51:13We just replaced the joist in the floor and that was it, really.
0:51:13 > 0:51:18The shop is quite nice. You get a large variety of people
0:51:18 > 0:51:24from the old to the right young and on the main road we've got a good footfall, which is important.
0:51:24 > 0:51:30With any business, you can't discriminate against passing trade. That's your bread and butter.
0:51:30 > 0:51:34# The bargain store is open Come inside
0:51:34 > 0:51:37# The bargain store is open Come inside
0:51:37 > 0:51:41# You can easily afford the price... #
0:51:41 > 0:51:45'Greg's had the business up and running for two months now.
0:51:45 > 0:51:50'He's been busy shifting his wares, but was it easy to shift from residential to commercial?'
0:51:50 > 0:51:56The gaining of the actual planning consent for change of use to A1 business use
0:51:56 > 0:52:01was a little bit time-consuming at the end of the day.
0:52:01 > 0:52:06But everyone I spoke to said we got away quite lightly. It took about six months.
0:52:06 > 0:52:12The gentleman who drew my plans up done a blinder on it, really, and swung it with the council.
0:52:12 > 0:52:19'So with one of his main objectives out of the way, Greg has started work on the kitchen,
0:52:19 > 0:52:25'uncovering some wonderful floor tiles and installing a new Belfast sink.
0:52:25 > 0:52:31'But with one problem solved that still left problem number two - the peeling gabled wall.'
0:52:31 > 0:52:36We consulted a structural engineer about the gable end
0:52:36 > 0:52:43to make sure there wasn't any subsidence. He told us it was just a case that the ties had rotted away
0:52:43 > 0:52:47due to weathering on the wall. They gave us three options -
0:52:47 > 0:52:53one was to rebuild it, another was to just re-joint it up and wait and see if it moved,
0:52:53 > 0:52:58and the third one was to have it pinned, which was what we done.
0:53:00 > 0:53:07'It's one big headache out of the way for Greg. He can now look forward to renovating the bedrooms,
0:53:07 > 0:53:11'which currently look more like stockrooms than living quarters.'
0:53:11 > 0:53:15We'll move in here one day! There's a bit of work to be done,
0:53:15 > 0:53:20but once the kitchen's in, the house is pretty much liveable.
0:53:20 > 0:53:24A bit of paint won't do no harm, as long as there's no damp.
0:53:24 > 0:53:26Some time in the next year.
0:53:26 > 0:53:32# One day soon I'll come back
0:53:32 > 0:53:37# And I'll stay for ever more... #
0:53:37 > 0:53:44'It's just as well Greg didn't pressure himself with a moving-in date as he's devoting all his time
0:53:44 > 0:53:50'to getting the shop sorted. With no idea of what work was needed, he also didn't predict a budget.'
0:53:50 > 0:53:55To have the gable end re-pinned was about three and a half in the end,
0:53:55 > 0:54:00which worked out a lot cheaper than having it rebuilt, which was 17 or 18.
0:54:00 > 0:54:04At the end of the day, it's been about £4,500.
0:54:04 > 0:54:10Not too bad. I didn't really put a budget in place. I just did it cheap!
0:54:10 > 0:54:14'Add that £4,500 to the £92,500 that Greg paid for the house
0:54:14 > 0:54:20'and his total outlay so far is £97,000. There's no doubt that his final spend
0:54:20 > 0:54:25'will be higher, because apart from getting the living quarters fixed up
0:54:25 > 0:54:33'he plans to turn the garden into a mini-garden centre. He's definitely putting down roots.
0:54:35 > 0:54:40'But what will two local estate agents make of Greg's new shop
0:54:40 > 0:54:42'and his £97,000 investment?'
0:54:42 > 0:54:47My first impressions of it are that it still needs some updating.
0:54:47 > 0:54:52The change of use is in place to use the front and rear garden.
0:54:52 > 0:54:58The guy's already trading now. So it's a good use of space for a town property and town shop.
0:54:58 > 0:55:03The commercial unit slots in well. There aren't any others in the area.
0:55:03 > 0:55:08I think it does fulfil a need, especially in these times.
0:55:08 > 0:55:15For the residential space to reach its true potential, you need to update the kitchen and bathroom,
0:55:15 > 0:55:19maybe move a few walls, put a few stud walls in to change it.
0:55:19 > 0:55:23But it's doable. It just needs a bit of work.
0:55:23 > 0:55:28'Getting the property to reach its true potential is still some time off, but after 11 months
0:55:28 > 0:55:32'how does Greg's investment of £97,000 stand up?'
0:55:32 > 0:55:37Combining the residential space and retail unit in its current condition,
0:55:37 > 0:55:40I'd recommend a value of £135,000.
0:55:40 > 0:55:45In its current condition, I would estimate the property to be worth £110,000-£120,000.
0:55:46 > 0:55:52'As it is now, the property could earn a £13,000-£38,000 pre-tax profit.
0:55:52 > 0:55:54'What about once renovated?'
0:55:54 > 0:56:00After a period of work, I'd suggest the top valuation could be in the region of £160,000.
0:56:00 > 0:56:06If it was fully renovated, I'd up that valuation to £145,000-£155,000.
0:56:06 > 0:56:12'That could give Greg a whopping pre-tax profit of £48,000-£63,000.'
0:56:15 > 0:56:21At the moment, property prices are dropping in Norfolk so that's... that's quite nice.
0:56:21 > 0:56:25That can't be wrong, can it? Not too bad.
0:56:25 > 0:56:31'So there may be some first-rate profits in this second-hand shop for Greg,
0:56:31 > 0:56:37'but for now it's a place that he's bought into and the plan is to see it grow and expand.'
0:56:37 > 0:56:40I'm happy with what I've got.
0:56:40 > 0:56:46Two or three years ago, I didn't think I'd be sitting in this garden, so that's lovely really.
0:56:48 > 0:56:54That's it for now. Join us next time for more riveting properties going under the hammer.
0:56:54 > 0:57:01- We'll have more flats, houses, plots of land and maisonettes. - Join us then.- Bye-bye.- Goodbye.
0:57:13 > 0:57:17Subtitles by Subtext for Red Bee Media Ltd - 2011
0:57:21 > 0:57:23Email subtitling@bbc.co.uk