0:00:02 > 0:00:05As we've witnessed, buying property can have its highs and lows
0:00:05 > 0:00:07and it's not always as easy as it looks.
0:00:07 > 0:00:10But there is one part of the process you can eliminate.
0:00:10 > 0:00:15Getting rid of that dreadful property chain by buying at auction.
0:00:40 > 0:00:45- All sorts of places come up for auction.- And variety is what keeps us interested.
0:00:45 > 0:00:49So these are the places that went under the hammer on today's show.
0:00:50 > 0:00:54'This bungalow in Devon has an awe-inspiring view.'
0:00:54 > 0:00:58Wow! Torquay at its most glorious!
0:01:00 > 0:01:04'We revisit a cracking property in London.'
0:01:04 > 0:01:08That up there is shocking!
0:01:10 > 0:01:17'And I can see the potential for this house in Salford to go from rubbish tip to tip-top.'
0:01:17 > 0:01:20It's a mess, but I like it.
0:01:21 > 0:01:24'All these properties have been sold at auction
0:01:24 > 0:01:29'and we'll find out who bought them and what they paid for them when they went under the hammer.'
0:01:34 > 0:01:36'I'm in Torquay.
0:01:36 > 0:01:41'The idyllic coastline here has provided inspiration for many writers,
0:01:41 > 0:01:46'including Sir Arthur Conan Doyle, Oscar Wilde and Agatha Christie.
0:01:46 > 0:01:51'The English Riviera, as the area is known, is simply stunning in the summer,
0:01:51 > 0:01:53'but it's also pretty nice in winter.'
0:01:53 > 0:01:58So, will the property I'm here to see inspire me, I wonder? Well, this is it.
0:01:58 > 0:02:04It's a two-bedroom bungalow. Looks OK from the outside. Nice that it's set up high above the road.
0:02:04 > 0:02:07At a guide price of £215,000, let's take a look inside.
0:02:07 > 0:02:10Actually, you don't need to go inside to see
0:02:10 > 0:02:14the first fantastic thing about this property. It comes with a view!
0:02:14 > 0:02:18You can even see the sea. Fantastic!
0:02:19 > 0:02:24'The view alone is worth that £215,000 guide price.
0:02:24 > 0:02:26'Let's take a look inside.'
0:02:27 > 0:02:30So, what have we got? Straight into a porch
0:02:30 > 0:02:35and then, kind of unusual, into another sort of entrance area.
0:02:35 > 0:02:39Straight away, I'm thinking, not the best use of space, but not to worry.
0:02:39 > 0:02:43Down the corridor there, stairs up to the second floor. That's a bit odd.
0:02:43 > 0:02:45This is a bungalow, but a dormer bungalow.
0:02:45 > 0:02:51Down this little corridor, you've got a living room/dining room area there.
0:02:51 > 0:02:54Mm, clearly, total refurbishment required.
0:02:54 > 0:02:57Kitchen, which definitely needs a bit of love and attention.
0:02:57 > 0:03:02Then into a really big living room.
0:03:02 > 0:03:06Views out, which is wonderful. You've got an open fire. It's a big space.
0:03:06 > 0:03:13And the whole bungalow in general feels big. But it's not making the most of itself.
0:03:13 > 0:03:18'This bungalow is a warren of narrow hallways and small extensions,
0:03:18 > 0:03:23'from the entry porch to the small extension that sits in front of the lounge.
0:03:26 > 0:03:30'And to the rear, where the kitchen also has an extension.
0:03:36 > 0:03:41'The master bedroom is at the back and is large enough to add an en suite shower room.
0:03:41 > 0:03:46'There will be no problem with the plumbing, as the bathroom is right next door.
0:03:48 > 0:03:51'Onwards and upwards to the dormer conversion.'
0:03:54 > 0:03:57So, upstairs, where you find the dormer bedroom
0:03:57 > 0:04:01but an additional feature which I didn't expect, a loo. Really good thing to have.
0:04:01 > 0:04:06Room itself, pretty decent size. This is the main room, then you've a little anteroom there.
0:04:06 > 0:04:11I would've gone even further and extended this across the whole width of the bungalow.
0:04:11 > 0:04:13Then you get an extra bedroom in.
0:04:13 > 0:04:16The one thing they definitely got right in the positioning, cos, wow!
0:04:16 > 0:04:20Torquay at its most glorious.
0:04:20 > 0:04:24# It's a glo-o-o-orious town
0:04:24 > 0:04:27# It's a glo-orious town
0:04:27 > 0:04:33'Not quite as glorious as the view, but nearly as lovely, is the back garden.
0:04:34 > 0:04:38'A cause for concern, though, is the condition of the roof.
0:04:40 > 0:04:45'Remember, the guide price for this property was £215,000.
0:04:48 > 0:04:52'I invited a local expert from the auctioneers that sold the bungalow
0:04:52 > 0:04:54'to give us his opinion.'
0:04:56 > 0:04:59The property is in a beautiful residential area.
0:04:59 > 0:05:01It's located close to the coast,
0:05:01 > 0:05:04also close to the amenities and facilities of the town centre.
0:05:04 > 0:05:07This is one of the more favoured areas of Torquay.
0:05:08 > 0:05:12'When done up, how much could the property be worth?'
0:05:12 > 0:05:18Once this property is renovated, it could fetch somewhere in the region of between £325,000 and £350,000.
0:05:18 > 0:05:21'And if rented out?'
0:05:21 > 0:05:24If the property was let out, on a monthly basis,
0:05:24 > 0:05:29it could be somewhere in the region of £850 to £950 per calendar month.
0:05:32 > 0:05:36So, what do we think about this gorgeous Torquay bungalow?
0:05:36 > 0:05:38Well, I think it's a fantastic opportunity.
0:05:38 > 0:05:44Pleasant place to live. A property that you could move into or potentially develop.
0:05:44 > 0:05:48A great one to go for. Let's see who bought it when it went to the auction.
0:05:49 > 0:05:53Let's kick it off at 200 cos it will not make less. 200 straight in.
0:05:53 > 0:05:57200. Thank you, sir. 200, we're away. 200 I've got. At 200.
0:05:57 > 0:06:00210. 220.
0:06:00 > 0:06:03220. Slow up a bit? 225.
0:06:03 > 0:06:05230. 230.
0:06:05 > 0:06:08235, he says. 235.
0:06:08 > 0:06:11240. At 240. At 241.
0:06:11 > 0:06:13242.
0:06:13 > 0:06:16242 I've got against you. 242 is on my right.
0:06:16 > 0:06:19At 242. 43. 244.
0:06:19 > 0:06:23244. 245.
0:06:23 > 0:06:26Are you working this out? 246.
0:06:26 > 0:06:30At 246. You tell me what you want your next bid to be.
0:06:30 > 0:06:33246 on my right. 247? 247.
0:06:33 > 0:06:36247. 247. 250?
0:06:36 > 0:06:39250 on my right. At 250. At 250.
0:06:39 > 0:06:43At 250. At 250.
0:06:43 > 0:06:48Not looking very happy. At 250. But there's a little smile, that's good.
0:06:48 > 0:06:50At 250. 250 once.
0:06:50 > 0:06:53At 250 twice.
0:06:53 > 0:06:55251. 251.
0:06:55 > 0:06:57At 251.
0:06:57 > 0:07:01You're in, sir, at 251. All done. First time. Second time.
0:07:01 > 0:07:06Third and last time at 251. Last chance. Selling it at 251.
0:07:06 > 0:07:12'The successful bidders are builder Ron and his friend and business partner Graham,
0:07:12 > 0:07:16'who purchased this property for £251,000.
0:07:17 > 0:07:21'That purchase price means a stamp duty payment of three percent,
0:07:21 > 0:07:25'£7,530 in this case.
0:07:25 > 0:07:28'I met Ron and his wife Yvonne back at the bungalow.'
0:07:28 > 0:07:34- Ron, Yvonne, lovely to meet you. Congratulations.- Thank you.- Tell me why you wanted this bungalow.
0:07:34 > 0:07:40Basically, my partner and myself fancied another property to do
0:07:40 > 0:07:41to try and earn a shilling.
0:07:41 > 0:07:45A honest shilling. What did you like about it?
0:07:45 > 0:07:49- We liked the location. We liked that view out there.- Right.
0:07:49 > 0:07:52You certainly can't complain about the view. It's amazing.
0:07:52 > 0:07:56So, Yvonne, do you get involved in the business at all?
0:07:56 > 0:08:00- Not really.- You write the cheques, don't you?- Yeah. - THEY LAUGH
0:08:00 > 0:08:03I did at the auction, write a cheque.
0:08:03 > 0:08:08Now, the auction was quite interesting, because you hit the stamp duty threshold.
0:08:08 > 0:08:11In fact, the bid before was the stamp duty threshold, 250,
0:08:11 > 0:08:16- you bid 251.- Yes. - So what effect does that have?
0:08:16 > 0:08:22I knew that I had to pay the extra stamp duty money, but my partner Graham didn't think
0:08:22 > 0:08:25and he wanted me to go that one more.
0:08:25 > 0:08:29But that one actually was one plus an extra two percent on the stamp duty.
0:08:29 > 0:08:32- So it's an extra £6,000 you've got to pay.- Yeah.
0:08:32 > 0:08:37So I quietly swore at him. HE LAUGHS
0:08:38 > 0:08:43'Ten years ago, Ron sold his building business to his son, Roy,
0:08:43 > 0:08:46'and retired, but still likes to keep his hand in.
0:08:46 > 0:08:49'I guess he'll want to keep this simple, then.'
0:08:49 > 0:08:53# Take it easy
0:08:53 > 0:08:56# Take it easy
0:08:56 > 0:09:01- So, Ron, what are the plans for the property? - We will take the roof right off.
0:09:01 > 0:09:08- You will?- And we're going to put a brand new roof up with three double bedrooms, three bathrooms.- Wow.
0:09:08 > 0:09:11- Yeah.- What about downstairs?
0:09:11 > 0:09:16Downstairs, there will be a double garage built.
0:09:16 > 0:09:21- That will create a double patio area. - Right.
0:09:21 > 0:09:26The hallway will be in the centre, the front door will be in the centre,
0:09:26 > 0:09:30- and where the old front door is will be a big dining room.- Oh! OK.
0:09:30 > 0:09:34Now, are you leaving any walls in place?
0:09:34 > 0:09:36Just a few.
0:09:38 > 0:09:43'Wow! That is a lot of work. So no taking it easy for Ron, then.
0:09:43 > 0:09:47'He's obviously not afraid of some hard graft.'
0:09:47 > 0:09:50# Time for me to go to work
0:09:50 > 0:09:53# And it's hard work
0:09:53 > 0:09:56'What will the budget be?'
0:09:56 > 0:09:58Any idea how much all that's going to cost?
0:09:58 > 0:10:03- I'm going to put £80,000.- 80. OK. Does that sound about right, Yvonne?
0:10:03 > 0:10:07- I think so.- Right.- I shall be looking after the paperwork.
0:10:07 > 0:10:12- SHE LAUGHS - And watching how much he spends. - Yeah.
0:10:12 > 0:10:19- How long do you think it's going to take?- I would say six months from the rubber stamp from the council.
0:10:19 > 0:10:23- So you've got to apply for planning permission for all that. - That's gone in.
0:10:23 > 0:10:27- Already?- Yeah. Six months after the rubber stamp,
0:10:27 > 0:10:30- I want it back on the market. - Sell it on.
0:10:30 > 0:10:33- What will you do if you can't sell it?- I'd move in it.
0:10:33 > 0:10:38So, Yvonne, I think you're invited into this.
0:10:38 > 0:10:40I'm quite happy where we are at the moment.
0:10:40 > 0:10:45- So you might be here on your own. - Yeah, he could be!
0:10:45 > 0:10:51'Well, let's hope Ron has more luck convincing the council to rubber-stamp his plans
0:10:51 > 0:10:54'than he's had so far convincing Yvonne to move house.
0:10:55 > 0:10:58'Meanwhile, let's take a look at those plans.'
0:11:02 > 0:11:08- So, these are the new plans, then? - Yes. - Do you want to talk me through them?
0:11:08 > 0:11:11Obviously, the most striking feature is this on the first floor.
0:11:11 > 0:11:15That's the master bedroom, getting the nice views down to the sea.
0:11:15 > 0:11:18- Wow, so that's virtually floor to ceiling glass.- Yes.
0:11:18 > 0:11:21What a dramatic change to the property!
0:11:21 > 0:11:25- You must be quite excited about that.- Well, I will be when it's all finished.
0:11:25 > 0:11:29You mentioned that you'd like to live here, and I can completely understand why,
0:11:29 > 0:11:32but Yvonne didn't seem too keen.
0:11:32 > 0:11:35- Well, the house we've got at the moment, she likes.- Right.
0:11:35 > 0:11:38And I've moved her about a few times.
0:11:38 > 0:11:44Well, I'm really excited to see this when it's done. We'll try and leave it as long as possible.
0:11:44 > 0:11:49I'd like you to come back and see it as it's finished, so I think I'll be nice.
0:11:49 > 0:11:53- Yeah, I'm sure it will be. Congratulations. Good luck with it all.- Thank you very much.
0:11:53 > 0:11:55# Hard work
0:11:55 > 0:11:59Well, what an amazing transformation Ron's got lined up. I can't wait to see it.
0:11:59 > 0:12:05Still, that £80,000 budget won't go too far, and he has to get planning permission before he does anything.
0:12:05 > 0:12:11Will he end up living here or will Yvonne get her own way and they'll sell it.
0:12:11 > 0:12:13You can find out later in the show.
0:12:18 > 0:12:22'Back in 2007, the London property market was in full flow
0:12:22 > 0:12:26'and developers were riding a wave of escalating house prices.
0:12:26 > 0:12:29'One of the most buoyant areas was Fulham in southwest London,
0:12:29 > 0:12:32'which has not always been the case.'
0:12:32 > 0:12:36During the 18th century, this area was known for its gambling
0:12:36 > 0:12:40and prostitution. A London Las Vegas for the rich.
0:12:40 > 0:12:44Now Fulham is a really swanky part of Southwest London.
0:12:44 > 0:12:47It's got everything a discerning buyer could wish for.
0:12:47 > 0:12:51Trendy eateries, lots of foaming lattes, a lovely river
0:12:51 > 0:12:54and its very own Premiership football club,
0:12:54 > 0:12:57although you may need footballer's wages to live around here.
0:12:57 > 0:13:02'The property I'm here to see is in an area referred to as the alphabet streets,
0:13:02 > 0:13:05'as the streets are in alphabetical order.
0:13:08 > 0:13:13'It's a three-bedroom end-terrace with a guide price of £600,000.'
0:13:13 > 0:13:17I really do love these old Victorian houses.
0:13:17 > 0:13:19I'm quite passionate about them.
0:13:19 > 0:13:23Some I've seen recently have had quite a few of these walls knocked out,
0:13:23 > 0:13:28this one in particular, and I think this room would really benefit from that.
0:13:28 > 0:13:32You've got the old ceiling rose up there and that gorgeous bay window.
0:13:32 > 0:13:35Once that's been refurbished, it will look fantastic.
0:13:35 > 0:13:41There's a fake fireplace over here. I think something more traditional and in keeping would look good.
0:13:41 > 0:13:45But that up there is shocking.
0:13:45 > 0:13:49There's the biggest crack you've ever seen.
0:13:49 > 0:13:53That needs to be looked at by an expert straight away.
0:13:53 > 0:13:55'Not the best of starts structurally,
0:13:55 > 0:13:58'but there are signs of plenty of character.
0:13:58 > 0:14:04'Those continue down the hall, where there's another reception/dining room and beyond that, the kitchen.'
0:14:04 > 0:14:08Well, this kitchen really is a plus point to the property.
0:14:08 > 0:14:10It's a huge family space.
0:14:10 > 0:14:14I think this area would originally have been the third sitting room
0:14:14 > 0:14:17and through here, the scullery.
0:14:17 > 0:14:21But as it is at the moment, it's set up in a very sort of mock-Tudor style.
0:14:21 > 0:14:24It's certainly worth ripping the whole thing out
0:14:24 > 0:14:28and putting something extremely top-spec in.
0:14:28 > 0:14:31'This kitchen area could be fantastic.
0:14:31 > 0:14:34'It's a good space and could be transformed into an area
0:14:34 > 0:14:39'with a real wow factor. Which is more than can be said for the garden.'
0:14:39 > 0:14:42So far, it's all looking rather good in this house,
0:14:42 > 0:14:46although I do think, as it is, it's a family property,
0:14:46 > 0:14:49and this backyard is clearly too small.
0:14:49 > 0:14:53There ain't a lot of space out here. And if you come round here,
0:14:53 > 0:15:00you can see, there's a whole area, a big side return, that's just wasted.
0:15:00 > 0:15:02Nobody's going to use this space.
0:15:02 > 0:15:06I think it might be a good idea to think about extending over here.
0:15:06 > 0:15:10A lot of the neighbours have already set a precedent and done this in the street,
0:15:10 > 0:15:14and if you knock down what looks like an old bomb shelter,
0:15:14 > 0:15:17you could increase the square footage of the back yard.
0:15:19 > 0:15:25'So this area needs to be thought through, with every inch utilised to maximise the space.
0:15:25 > 0:15:30'That's also true upstairs, where there's a relatively small bathroom and three bedrooms of varying size.
0:15:30 > 0:15:34'There are also more cracks and signs of damp.
0:15:38 > 0:15:41'I think by losing the smallest bedroom and rejigging,
0:15:41 > 0:15:45'you could get a decent-size bathroom and two good-size bedrooms.
0:15:45 > 0:15:51'maybe even one en suite. And there may be a way of then getting back that third bedroom.'
0:15:52 > 0:15:57I really hope the potential purchaser has a good old look up in the loft,
0:15:57 > 0:16:03because one great way to enhance a home is to create space where there was no living space before.
0:16:03 > 0:16:08Now, in some instances, it's cheaper to build up than have an extension out the back,
0:16:08 > 0:16:13and in this part of London, when you add square footage, you add value.
0:16:14 > 0:16:19'With a loft conversion, you might get enough extra square footage to split the house into flats.
0:16:19 > 0:16:23'But then you'd be in the hands of the planners and the costs would rise.
0:16:24 > 0:16:27'In 2007, there was strong demand for properties like this.
0:16:27 > 0:16:30'At auctions, where the atmosphere was electric,
0:16:30 > 0:16:35'they could easily command high prices of around £600,000.
0:16:35 > 0:16:38'So let's see who bought this one and for how much.'
0:16:42 > 0:16:45I'll hand it over to you. Where do you want to start?
0:16:45 > 0:16:485? Yes? 500.
0:16:48 > 0:16:53510 anywhere? 510. 520.
0:16:53 > 0:16:56530. 540.
0:16:56 > 0:16:59550. 560.
0:16:59 > 0:17:02570.
0:17:02 > 0:17:04580.
0:17:04 > 0:17:08590. 600.
0:17:08 > 0:17:10610. 620.
0:17:10 > 0:17:12625?
0:17:12 > 0:17:15625, sir? Or 621?
0:17:15 > 0:17:19Yeah, 621. 622, madam?
0:17:19 > 0:17:22623. 624.
0:17:24 > 0:17:27623 with you. First time. Second time.
0:17:27 > 0:17:29Third and last time, are you all done?
0:17:29 > 0:17:33- HE BANGS GAVEL - Sold. 623. Well done.
0:17:33 > 0:17:39'The final bid of £623,000 was made by experienced property developer Baron.
0:17:39 > 0:17:44'Originally from Iran, Baron has been property developing for about 15 years.'
0:17:44 > 0:17:49Now, Baron, you paid £23,000 over the guide price at auction.
0:17:49 > 0:17:54- How do you feel about that? - Well, if I'd have seen the place,
0:17:54 > 0:17:57perhaps I wouldn't have paid that much over the odds,
0:17:57 > 0:18:00but give and take, perhaps I would have.
0:18:00 > 0:18:05What was your initial reaction when you opened the front door and you walked in here?
0:18:05 > 0:18:09In fact, I was quite happy to see they've got a good-size kitchen here.
0:18:09 > 0:18:12Most of the places you find are small and you cannot turn a cat around.
0:18:12 > 0:18:18- We mustn't override the fact that there is a whopping great crack in the front room.- Yeah.
0:18:18 > 0:18:22- What's the history with that? - It's just movement and it's just on the ceiling.
0:18:22 > 0:18:28I wouldn't read much into it. We'll be taking all the ceilings down, treating all the woodwork.
0:18:28 > 0:18:30It doesn't mean much to me.
0:18:30 > 0:18:33'Although Baron has been property developing for many years,
0:18:33 > 0:18:39'that was not what he planned to do when he first came to the UK over 25 years ago.'
0:18:39 > 0:18:43What is your background? Have you always been involved in property?
0:18:43 > 0:18:49No, as a matter of fact, I was nothing to do with properties initially
0:18:49 > 0:18:53and I was trained originally to become a ship's captain
0:18:53 > 0:18:55and I was trained here in the United Kingdom.
0:18:55 > 0:19:00That's quite a difference, moving from a ship's captain to property developing.
0:19:00 > 0:19:07- What happened?- The thing is, when I had my first child born to me, my wife didn't want to go back to sea,
0:19:07 > 0:19:15and being as I'm a seafarer, it's perhaps difficult for the life I had with my wife,
0:19:15 > 0:19:19and once we were here, we settled down here and I've not been to sea at all since.
0:19:19 > 0:19:24'He certainly seems to have found his land legs in the property business.
0:19:24 > 0:19:27'He has an extensive property portfolio now.
0:19:27 > 0:19:32'But is he all at sea about which approach to take with this house?'
0:19:34 > 0:19:38Baron, I really see this as a family house,
0:19:38 > 0:19:42but I have a massive problem with the fact that you've got such a small garden here.
0:19:42 > 0:19:45I really think that's going to hold the sale of this house back.
0:19:45 > 0:19:51We do seem to have a small garden. We'll take the shed away. It's a bomb shelter, I suppose.
0:19:51 > 0:19:55Once we do take it away, we'll have more of a garden.
0:19:55 > 0:20:00But in this street, all of these houses have got the same garden,
0:20:00 > 0:20:05so you can't just say this particular one has a small garden. I don't think so.
0:20:05 > 0:20:09- Baron, you've got this side return down the side of the property.- Yes.
0:20:09 > 0:20:12Is it likely that you might convert that?
0:20:12 > 0:20:16I have the intention of asking the planners if they'll allow me to extend to the side.
0:20:16 > 0:20:20I think it's advisable to do that, because it will create more space.
0:20:20 > 0:20:23'Baron's keen on the idea of a side extension
0:20:23 > 0:20:29'and he's also considering a loft extension, which will give him two options for the house.'
0:20:29 > 0:20:33Do you see yourself developing this as a family home?
0:20:33 > 0:20:35Because you have got the option of two flats here.
0:20:35 > 0:20:40I'm inclined, myself, to go for two flats.
0:20:40 > 0:20:45It's my gut feeling telling me to go for two flats, cos I want to keep the property rather than sell it
0:20:45 > 0:20:50and then we'll get better return on the rental income in comparison to one house,
0:20:50 > 0:20:53which will not give us much income.
0:20:53 > 0:20:57How much do you think you'll need to spend on this to convert it into two flats?
0:20:57 > 0:21:00I think 120, 60 apiece, perhaps.
0:21:00 > 0:21:06It's going to be really interesting coming back and seeing, is it going to be flats or a family house?
0:21:08 > 0:21:11'Well, that was in March 2007.
0:21:11 > 0:21:15'When we first returned, three months later in June of that year,
0:21:15 > 0:21:18'the house was undergoing extensive renovation.
0:21:18 > 0:21:20'Baron was taking it back to its bare bones
0:21:20 > 0:21:22'and also reconsidering his options.'
0:21:23 > 0:21:28Initially, I thought I would put this as two flats.
0:21:28 > 0:21:32It was just an idea. Then, having spoken to two or three agents,
0:21:32 > 0:21:35they told me that I wouldn't get my money back.
0:21:35 > 0:21:41Then I just decided to go, on the advice of the estate agents, as one dwelling.
0:21:41 > 0:21:47This was a three-bedroom house, supposed to be three-bedroom. One of the bedrooms was very, very small.
0:21:47 > 0:21:51We are going to do the loft. We're going to have a loft conversion here.
0:21:51 > 0:21:57As such, it will be four-bedroom and we have changed the position of one of the smaller bedrooms
0:21:57 > 0:22:01with the bathrooms and then we're going to have a through-reception here
0:22:01 > 0:22:05with a much bigger kitchen to come with it.
0:22:05 > 0:22:09'So, having opted for plan B, Baron pushed on to finish off
0:22:09 > 0:22:12'what would now be a four-bed house in Fulham.
0:22:12 > 0:22:19'That was over three years ago, and you can see if all his investment and work paid off later on.
0:22:22 > 0:22:27'Coming up, you'll need to put your developer's goggles on for this house in Salford.'
0:22:27 > 0:22:31See through what's here to what it could become.
0:22:32 > 0:22:35'We revisit former ship's captain Baron,
0:22:35 > 0:22:39'who's finding the choppy waters of the property market hard to navigate.'
0:22:39 > 0:22:43We were hit by this downturn in the property market.
0:22:44 > 0:22:49'But first, Ron's renovation in Devon seems to have impressed the experts.'
0:22:49 > 0:22:53It's an amazing property and what they've done is an absolute classic.
0:22:56 > 0:22:59'Let's take a trip back to Torquay...
0:23:02 > 0:23:08'..where, on a cold and frosty winter's morning, I met builder Ron and his wife Yvonne.
0:23:08 > 0:23:16'They'd purchased this two-bedroom bungalow, along with silent partner Graham, for £251,000.
0:23:16 > 0:23:21'Ron retired ten years ago and passed on his building business to his son.
0:23:21 > 0:23:28'As Ron says, he likes to keep his hand in, so I assumed he'd want to keep this renovation fairly simple.
0:23:30 > 0:23:33'How wrong could I be?'
0:23:33 > 0:23:39- We will take the roof right off. - You will?- And we're going to put a brand new roof up
0:23:39 > 0:23:42- with three double bedrooms, three bathrooms.- Wow.
0:23:42 > 0:23:46Downstairs, the hallway will be in the centre,
0:23:46 > 0:23:51the front door will be in the centre, and where the old front door is will be a big dining room.
0:23:51 > 0:23:54Are you leaving any walls in place?
0:23:54 > 0:23:57Just a few.
0:23:57 > 0:24:02'Just about all Ron would be keeping was the view.
0:24:02 > 0:24:06'So, nine months after our first visit, we're back.
0:24:09 > 0:24:11'Wow! What a transformation!
0:24:17 > 0:24:21'Their living room has remained relatively unchanged.
0:24:22 > 0:24:25'New French doors to the back garden.
0:24:25 > 0:24:28'And in the front, a large new patio area.
0:24:29 > 0:24:32'But as for the rest of the ground floor,
0:24:32 > 0:24:36'the kitchen and the master bedroom have been combined with an extension
0:24:36 > 0:24:40'to create what will be an open-plan living and kitchen area.
0:24:46 > 0:24:50'This bungalow is unrecognisable from our last visit.'
0:24:51 > 0:24:56It's an entirely different place. Beautiful. I like it.
0:24:57 > 0:24:59'The dining room is now the entrance.
0:25:02 > 0:25:05'The narrow and dark hallways have been opened out,
0:25:05 > 0:25:09'allowing easier movement and more natural light into the property.
0:25:11 > 0:25:15'With a dining room created in what was the entrance porch,
0:25:15 > 0:25:18'this renovation proved a challenge,
0:25:18 > 0:25:22'with structural issues relating to the foundations.
0:25:23 > 0:25:28I call it my nightmare job, because I'm more used to building brand-new properties
0:25:28 > 0:25:32than I am doing renovations. I'm not a renovation man, really.
0:25:32 > 0:25:37It's been a lot harder, more stress, but it's coming to the end.
0:25:37 > 0:25:42'Four weeks after work began, a couple visited Ron on site.
0:25:42 > 0:25:47'They were interested in buying the bungalow and have now purchased it as their new home.
0:25:47 > 0:25:51'Ron has had to change his plans to meet their preference
0:25:51 > 0:25:53'for this large, open-plan area.
0:25:53 > 0:25:58'So there is now no downstairs bedroom, as he had originally planned.'
0:26:02 > 0:26:07'Let's take a look upstairs, where there was one bedroom with a small anteroom to the side.
0:26:12 > 0:26:16'This cathedral-style window offers a view to worship
0:26:16 > 0:26:20'and is another graceful touch to this magnificent renovation.'
0:26:23 > 0:26:29The cathedral front has turned out fantastically, and I wanted that in the beginning,
0:26:29 > 0:26:33and I think it's marvellous. Absolutely marvellous.
0:26:36 > 0:26:41'A Juliet balcony will be added, perfect for enjoying the sea breeze on a summer's evening.
0:26:44 > 0:26:49'There are now three bedrooms on this floor, each with its own bathroom.
0:26:53 > 0:26:57'Ron has done the renovation with his son, Roy, and his team of builders.
0:26:57 > 0:27:04'Although the work is yet to be completed, the quality of their craftsmanship shines through.
0:27:04 > 0:27:07'This property is an undoubted triumph.'
0:27:13 > 0:27:16My son has worked with me for years
0:27:16 > 0:27:20and, basically, I'm getting older, he's taking over.
0:27:20 > 0:27:23Really, he's the backbone of the business now.
0:27:24 > 0:27:27'And how does Roy feel about working with his dad?'
0:27:28 > 0:27:33It's not too bad. I've worked with him since I was 16,
0:27:33 > 0:27:38so I've got used to it now. I take the brunt of everything, but you get used to it.
0:27:39 > 0:27:43'What's his opinion on this renovation?'
0:27:43 > 0:27:47It's most probably one of the best ones we've done so far,
0:27:47 > 0:27:50but hopefully the next one might be better.
0:27:50 > 0:27:55'Right, lads, no time for tea breaks. You've a schedule to meet.'
0:27:57 > 0:27:59'That's more like it!
0:27:59 > 0:28:03'Changes to the building plans instigated by the new owners
0:28:03 > 0:28:08'mean Ron's six-month schedule will now be ten months, but has he stuck to his budget?'
0:28:09 > 0:28:13The original budget was £75,000 to £80,000,
0:28:13 > 0:28:17but I would say double that and we're about right.
0:28:18 > 0:28:21'That is a huge overspend!
0:28:21 > 0:28:28'Ron paid £251,000, plus a £7,530 stamp-duty payment for the property,
0:28:28 > 0:28:33'and around another £160,000 on the building work.
0:28:33 > 0:28:39'That's a massive total outlay just short of £420,000.
0:28:39 > 0:28:42'Let's hope he got a good price from the new owners.
0:28:46 > 0:28:49'We invited along two local property experts
0:28:49 > 0:28:53'for their opinions on Ron's renovation.'
0:28:53 > 0:28:56My first impressions of what he's done so far are amazing.
0:28:56 > 0:28:58The transformation is unbelievable.
0:28:58 > 0:29:01The extension work on the kitchen/breakfast room area,
0:29:01 > 0:29:04the extension upwards to create what is three bedrooms with all en suite
0:29:04 > 0:29:07is an amazing transformation.
0:29:10 > 0:29:15I think the quality and care and attention that's gone into it
0:29:15 > 0:29:20is very good and anybody buying this house should be very proud of it.
0:29:24 > 0:29:27Personally, I love it. I'd certainly live here. It's an amazing property
0:29:27 > 0:29:30and what they've done is an absolute classic.
0:29:31 > 0:29:34'The experts are impressed with the house,
0:29:34 > 0:29:38'but let's find out the sell-on value they believe it could achieve once completed
0:29:38 > 0:29:41'and how much Ron sold the property for,
0:29:41 > 0:29:45'bearing in mind his investment here is just under £420,000.'
0:29:49 > 0:29:56I would advise putting this on the market somewhere in the region of £500,000 to £550,000.
0:29:56 > 0:30:02I would expect this property to go on the market at around £500,000, to achieve very close to that figure.
0:30:02 > 0:30:06The couple that came along wanted it straight away
0:30:06 > 0:30:10and I put a value of 500 on it and they accepted it.
0:30:10 > 0:30:14I have had people, after that, who would give me more for it,
0:30:14 > 0:30:17but I wouldn't let the young couple down.
0:30:19 > 0:30:24'Well done, Ron. Ron described the renovation as a nightmare job,
0:30:24 > 0:30:27'but his hard work and that of his son and their team of builders
0:30:27 > 0:30:31'have certainly made this house a dream home.'
0:30:49 > 0:30:52'I'm in Little Hulton, a suburb of Salford.
0:30:52 > 0:30:57'Until the 1950s, this was a small village. However, in the 60s,
0:30:57 > 0:31:00'3,000 homes were built in the area
0:31:00 > 0:31:05'and a large proportion of the Salford population were relocated here.
0:31:06 > 0:31:09# Life in a northern town
0:31:12 > 0:31:19The average price for a terraced property in the UK is £180,000.
0:31:19 > 0:31:23Well, here in Little Hulton, you could buy four properties for that money,
0:31:23 > 0:31:27because I'm here to see a three-bedroomed mid-terrace,
0:31:27 > 0:31:30it had a guide price of 40,000 quid.
0:31:30 > 0:31:35The state from the outside gives an indication as to why.
0:31:35 > 0:31:38Let's see what it's like inside.
0:31:41 > 0:31:47'Boarded up and broken down. Fingers crossed for better inside.
0:31:47 > 0:31:48# Been beat up
0:31:48 > 0:31:50# Been broken down
0:31:50 > 0:31:54# But there's hope for this underdog
0:31:56 > 0:31:58OK. Well, it's in a bit of a state.
0:31:58 > 0:32:02It's one of those properties where you have to use your imagination.
0:32:02 > 0:32:06Big living room area there. Hallway here, lots of rubbish.
0:32:06 > 0:32:13Stairs up to the bedrooms. Interesting that the banister's gone, which is a bit odd.
0:32:13 > 0:32:19Through to the rear of the property, where there is a kitchen, in terms of this is where a kitchen would be.
0:32:19 > 0:32:21There aren't actually any units in here.
0:32:21 > 0:32:25But I suppose, on the positive side, if you were to refurbish this place,
0:32:25 > 0:32:31you'd want to replace the kitchen anyway, so the fact there isn't one, maybe that's a positive.
0:32:31 > 0:32:35Nice utility room area there. And, if I'm being positive,
0:32:35 > 0:32:42that's because, in terms of layout, I like this place! It's a mess, but I like it.
0:32:44 > 0:32:46# That's the way
0:32:46 > 0:32:51# Oh-oh, I like it, call me the underdog
0:32:51 > 0:32:54'Yes, you heard me right. I like it!
0:32:54 > 0:33:01'No sign of damp or structural damage means there is potential for a property developer to clean up
0:33:01 > 0:33:03'if purchased for the right price.'
0:33:03 > 0:33:07Well, upstairs, it doesn't get better. In fact, it gets worse.
0:33:07 > 0:33:12Floorboards have been lifted and the copper pipework has been removed
0:33:12 > 0:33:15and also all the electric cables have gone.
0:33:15 > 0:33:18Not brilliant. But, anyway, separate loo and bathroom there
0:33:18 > 0:33:24and in terms of the actual space, and that's what you've got to keep thinking about, it's not at all bad.
0:33:24 > 0:33:30It's three bedrooms, and even the smallest bedroom is a reasonable size double.
0:33:30 > 0:33:34The other main bedroom on the front of the house here, a really good size.
0:33:34 > 0:33:38Considering the footprint of the house, it makes good use of space.
0:33:38 > 0:33:41So, see through what's here to what it could become.
0:33:44 > 0:33:48'The guide price for this property was £40,000
0:33:48 > 0:33:52'and the ceiling price for houses like this around here is around £70,000.
0:33:52 > 0:33:57'But the sell-on market is currently stagnant.
0:33:57 > 0:34:02'However, if you kept control of the budget, which would have to include new electrics, plumbing and glazing,
0:34:02 > 0:34:08'and renovated for the more stable rental market, this could be a nice little earner.'
0:34:10 > 0:34:14At the back of the property, a garden that clearly needs a bit of tender loving care.
0:34:14 > 0:34:18In general, then, is this place worth it financially? I think it might be.
0:34:18 > 0:34:23Buy it for around the guide price of 40 grand, spend around £20,000 doing it up,
0:34:23 > 0:34:26and I think you could easily do it for that, £60,000 investment,
0:34:26 > 0:34:29you might not be able to sell it for a lot more than that.
0:34:29 > 0:34:36However, if you came to rent it out, something like this will get you between £400 and £450 a month.
0:34:36 > 0:34:38That's a nine percent yield.
0:34:38 > 0:34:42You know what? It's better than a slap in the face with a wet kipper.
0:34:45 > 0:34:48'I asked a local estate agent for the lowdown
0:34:48 > 0:34:50'on this beaten up house.'
0:34:50 > 0:34:53First impressions, the property does need some work doing to it.
0:34:53 > 0:34:57However, bought at the right price, I do think there would be definitely
0:34:57 > 0:34:59some money to be made on it.
0:34:59 > 0:35:03'If this place was transformed from a tip
0:35:03 > 0:35:07'to tip-top, how much could it make on the resale market?'
0:35:07 > 0:35:12I would look to sell it around £65,000 to £70,000,
0:35:12 > 0:35:15depending on the specification of the finish.
0:35:16 > 0:35:18'And if rented out?'
0:35:19 > 0:35:22The property itself would rent out fairly easily.
0:35:22 > 0:35:28And as a rental value, I would look to achieve around £475 per calendar month.
0:35:31 > 0:35:36Well, this house might not be very pretty at the moment, but it could be a very clever investment.
0:35:36 > 0:35:40Spend a bit of money sorting it out and you could be onto a real winner.
0:35:40 > 0:35:42Who fancied it when it went under the hammer?
0:35:44 > 0:35:47The guide is 40,000 plus.
0:35:47 > 0:35:50Give me £40,000. 40,000.
0:35:50 > 0:35:5330, then, if you're here to bid. £30,000.
0:35:53 > 0:35:5530,000.
0:35:55 > 0:35:58Bid. 30. Gentleman on my right at 30.
0:35:58 > 0:36:0235 anywhere, then? Your bid at 30. I'll take 35.
0:36:02 > 0:36:07A bid at 35. 35,000 at the back, then. Do I see 40?
0:36:07 > 0:36:1240,000. 40,000 I have now. 40,000. Do I see 45?
0:36:12 > 0:36:1441. 41,000. 42?
0:36:14 > 0:36:1842. 43. 44.
0:36:18 > 0:36:2444 and a half. 45. 45,000. 45 and a half?
0:36:24 > 0:36:2645 and a half. 46?
0:36:26 > 0:36:2846,000. 46 and a half?
0:36:28 > 0:36:3146 and a half. 47, sir?
0:36:31 > 0:36:3447,000, then. At 47 and a half may I say?
0:36:34 > 0:36:38No? At 47,000, then, for the first time.
0:36:38 > 0:36:4347,000 for the second time. Are we all done at £47,000?
0:36:43 > 0:36:50- Your property.- 'It was Sher who made the final successful bid of 47,000.'
0:36:52 > 0:36:57'He's a full-time property developer with a portfolio of over 30 properties
0:36:57 > 0:37:00'and also a qualified heating engineer.
0:37:00 > 0:37:05'This will be the very first time he's seen inside his new investment.'
0:37:05 > 0:37:11- Hello, there. Good to meet you. - Nice to meet you.- This is your house.
0:37:11 > 0:37:14- This is my house.- Do you want to go and have a look?- Thank you.
0:37:14 > 0:37:18'I fear he may be in for a bit of a shock.'
0:37:18 > 0:37:21# Shock to the, shock to the
0:37:21 > 0:37:25# Shock to the system, now
0:37:25 > 0:37:27The moment of truth.
0:37:30 > 0:37:32Right.
0:37:33 > 0:37:36It's a lot of work for me. HE LAUGHS
0:37:38 > 0:37:44Well, I've seen worse, but I think this is quite bad, as well.
0:37:44 > 0:37:48- Yes. A few windows broken, I'm afraid.- Yeah, yeah.
0:37:48 > 0:37:52- Right.- So, what were you expecting?
0:37:53 > 0:37:56This is quite bad because, obviously, it's a lot of...
0:37:58 > 0:38:01..damage.
0:38:01 > 0:38:05- There's nothing in the kitchen at all.- No.
0:38:05 > 0:38:07That's very helpful, really, in a way.
0:38:07 > 0:38:12- Oh, it's helpful! I like that you've put a positive spin on it.- I don't have to have too many skips.
0:38:12 > 0:38:16There you go! Put a positive spin on things.
0:38:16 > 0:38:20- A utility room here. - That's the utility room. - What do you think, then?
0:38:20 > 0:38:26Well, for the price I paid, I would say it's a bit dear.
0:38:26 > 0:38:29THEY LAUGH
0:38:29 > 0:38:32- I love the fact you're still smiling!- I think it's a bit dear.
0:38:32 > 0:38:39- The reason is, because I've got some properties like this a little bit lower.- Oh, OK.
0:38:39 > 0:38:41I'm going to leave you to have a look round
0:38:41 > 0:38:47- and then join me outside in a few minutes.- I will do. - Right. Have a nice wander.
0:38:47 > 0:38:51'Sher's no novice, but has made a beginner's mistake
0:38:51 > 0:38:54'by not taking a peek inside the property.
0:38:54 > 0:38:58'But there's no turning back now for Sher.'
0:38:58 > 0:39:02# If I could turn back time
0:39:02 > 0:39:06# If I could find a way
0:39:06 > 0:39:09- You've had a chance to fully look round now.- That's right.
0:39:09 > 0:39:12- What do you think? - Er, a lot of work.
0:39:14 > 0:39:17Worse than you thought or better than you thought?
0:39:17 > 0:39:24A little bit worse, I would say. Well, when you go for that sort of price, you don't expect a miracle.
0:39:24 > 0:39:27THEY LAUGH
0:39:28 > 0:39:31'Well, miracles, maybe not,
0:39:31 > 0:39:37'but for £47,000, you can usually expect plumbing and electrics.
0:39:37 > 0:39:42'Sher's originally from Pakistan, but now lives in Burnley with his wife
0:39:42 > 0:39:45'and near to their three children and one grandchild.
0:39:47 > 0:39:50Tell me exactly what you're going to do to sort it out.
0:39:50 > 0:39:54I think it would be going for the electric wiring first.
0:39:54 > 0:39:58And water. Because that's a necessity, as well.
0:39:58 > 0:40:03- And then?- Then we get on with the walls, structurally,
0:40:03 > 0:40:07and all the rest of it, and kitchens and everything.
0:40:07 > 0:40:09And the last thing we'll do is the garden.
0:40:09 > 0:40:13- What about the windows, replace all those?- Replace the damaged ones.
0:40:13 > 0:40:17Yeah, I think some of them are damaged, you can tell.
0:40:17 > 0:40:20What's the timescale for the work?
0:40:20 > 0:40:25I can't really put a timescale on it. I think I will do it as quick as I possibly can,
0:40:25 > 0:40:30because I have some other commitments, so I will do it...
0:40:30 > 0:40:35- I will straightaway make a start. - And who's going to do the work?
0:40:35 > 0:40:40A lot of it is me. I'm a plumber, so I have to get down to doing the piping first.
0:40:40 > 0:40:43Structurally, I have a couple of lads
0:40:43 > 0:40:48and they will do the walls and the plastering and all the rest of it.
0:40:48 > 0:40:51What kind of budget have you put aside for sorting it out?
0:40:51 > 0:40:54Er, £12,000, £10,000 to £12,000.
0:40:54 > 0:40:58So what's the idea? Is it to do it up and sell it on or what?
0:40:58 > 0:41:01Er, I'm undecided about that.
0:41:01 > 0:41:06- If I get the right price, I will do. - What would be the right price?
0:41:06 > 0:41:12Well, if I make a bit of money on it, that's the right price. I don't know!
0:41:12 > 0:41:16- THEY LAUGH - Listen, congratulations. You're a brave man.
0:41:16 > 0:41:21- And I love the fact you're still smiling.- Thank you, sir. - Lovely to meet you.- Thank you.
0:41:25 > 0:41:30Well, it's just as well that Sher wasn't hoping for a miracle because he certainly didn't get one.
0:41:30 > 0:41:35However, I think he has got himself a very decent potential rental property.
0:41:35 > 0:41:39Lots of work to do to get it sorted out, but at least he's still smiling,
0:41:39 > 0:41:43which is a very good start. Find out how he gets on later in the show.
0:41:46 > 0:41:51It's been a while now since we last saw those purchasers. Have they been busy bees?
0:41:51 > 0:41:56Or have they been stung and the project's ground to a halt? Let's go back and find out.
0:41:56 > 0:41:59'It was back in March 2007
0:41:59 > 0:42:03'when I first saw a large three-bedroom end-of-terrace house in Southwest London.
0:42:03 > 0:42:08'The house was bought for £623,000 at the height of the property boom
0:42:08 > 0:42:12'by former ship's captain turned property developer Baron.
0:42:12 > 0:42:15'He was trying to steer this three-bed property
0:42:15 > 0:42:19'from its current berthing arrangement to something more substantial.'
0:42:19 > 0:42:23I'm inclined, myself, to go for two flats.
0:42:23 > 0:42:27It's my gut feeling telling me I should go for two flats
0:42:27 > 0:42:29because I want to keep the property, not sell it.
0:42:30 > 0:42:35'When we first returned three months later, it was full steam ahead,
0:42:35 > 0:42:38'with radical work going on throughout the house.
0:42:38 > 0:42:42'Where there were once rooms, now there were just wide open spaces.'
0:42:42 > 0:42:45# Wide open spaces
0:42:47 > 0:42:51# Room to make her big mistakes
0:42:51 > 0:42:54'Having spoken to local estate agents,
0:42:54 > 0:42:58'Baron realised it would be a mistake to go for the two flat approach,
0:42:58 > 0:43:00'so he opted to keep it as one house,
0:43:00 > 0:43:03'but with a loft extension to make it four bedrooms
0:43:03 > 0:43:06'and to add a side extension.'
0:43:06 > 0:43:10What's happening is that we have the intention of, as you can see,
0:43:10 > 0:43:13we've taken the corner off, we're going to put a pier down here
0:43:13 > 0:43:21and then it will have a glass roof here, which will throw a lot of light in and make life all the better.
0:43:21 > 0:43:26'Having decided to make it into a four-bed house by using the loft space,
0:43:26 > 0:43:29'and armed with £120,000 budget,
0:43:29 > 0:43:31'Baron set about a comprehensive renovation.
0:43:31 > 0:43:37'Now, just over three years after that, we're back to see how he got on.
0:43:37 > 0:43:42'Although judging by first appearances at the front, it may not have changed very much,
0:43:42 > 0:43:46'a glance at the roof does show signs of a loft conversion.
0:43:49 > 0:43:55'At the back, not only is there now a dormer extension, but Baron's now completed a side extension.
0:43:55 > 0:43:59'So what effect has that had on the interior layout?
0:44:05 > 0:44:10'Wow! The downstairs really has been enlarged,
0:44:10 > 0:44:14'with both reception rooms combined into one big open-plan space.
0:44:15 > 0:44:21'And as for that old kitchen area, well, that side extension has transformed it!
0:44:23 > 0:44:28This used to be an enclosed space kitchen basically.
0:44:28 > 0:44:34There used to be a wall in this space, all the way along here.
0:44:34 > 0:44:38And this used to be a slight outside wall.
0:44:38 > 0:44:45We took the walls to the outside wall boundary
0:44:45 > 0:44:50and then we created skylights to draw a lot of light into the kitchen.
0:44:50 > 0:44:55And also, at the same time, we extended the rear of the kitchen,
0:44:55 > 0:44:59as you can see, by at least six feet.
0:44:59 > 0:45:03So it created a nice dining-cum-kitchen area.
0:45:06 > 0:45:11'Baron has managed to maximise the living area here, making up for the limited outside space
0:45:11 > 0:45:14'with light, airy, open rooms inside.'
0:45:17 > 0:45:19I tried to get as much space as possible.
0:45:19 > 0:45:24For everybody nowadays in London, space is the utmost thing.
0:45:24 > 0:45:27The standard of the work, we always do it to this standard.
0:45:30 > 0:45:37'Along with solid wood floors and modern fireplaces, there's even a cloakroom under the stairs.
0:45:44 > 0:45:48'While upstairs, the layout has been considerably altered.
0:45:56 > 0:46:00'So not only are there three well-proportioned bedrooms on the first floor,
0:46:00 > 0:46:03'but there's a much-improved family-size bathroom.
0:46:05 > 0:46:08'And then there's the top floor.'
0:46:10 > 0:46:12Basically, everything has changed here.
0:46:12 > 0:46:18There was no room here at all. It was loft space.
0:46:18 > 0:46:21We created all this space here with its own cupboards and its own bathroom,
0:46:21 > 0:46:24which is a bonus for a family,
0:46:24 > 0:46:29for the parents to have their own bathroom inside and not to share anything with the others.
0:46:30 > 0:46:34'Along with the en suite double bedroom and the three other bedrooms,
0:46:34 > 0:46:36'plus much improved bathroom space,
0:46:36 > 0:46:40'Baron's achieved the four-bed family house he wanted.
0:46:40 > 0:46:47'He completed the refurbishment in January 2008 after spending over £140,000 on it.
0:46:47 > 0:46:52'Then he was left with the tricky decision of what he wanted to do with it.'
0:46:52 > 0:46:55We were in two minds whether to sell it or not to sell it.
0:46:55 > 0:47:01Then we were hit by this downturn in the property market and we decided not to sell it.
0:47:01 > 0:47:04We would not have covered our costs at the time.
0:47:04 > 0:47:06Then we went to rent the place, basically.
0:47:06 > 0:47:11Maybe in five to ten years, when the market changes,
0:47:11 > 0:47:16then we might give it a thought, whether we want to keep it or just sell it off.
0:47:17 > 0:47:19'The tide had turned against Baron.
0:47:19 > 0:47:23'As a former ship's captain, he recognised that in the current choppy conditions,
0:47:23 > 0:47:26'it was best to drop anchor and wait out the storm.
0:47:26 > 0:47:31'He just hopes that in the long term, all the work and money he's sunk into this place won't be lost.
0:47:31 > 0:47:35'So how is it fairing in the current climate?
0:47:36 > 0:47:39'Baron bought the house for £623,000 at auction
0:47:39 > 0:47:42'and spent £140,000 renovating it.
0:47:42 > 0:47:48'So, with costs and fees, he estimates he has around £800,000 invested here.
0:47:48 > 0:47:51'So has the downturn in the market cost him dear?
0:47:51 > 0:47:54'What do two local property experts think?'
0:47:54 > 0:47:57It's a good house, they've done a good job,
0:47:57 > 0:48:00nice and open, very bright, good location, good room sizes.
0:48:00 > 0:48:04I've seen many styles on this street and this is excellent. I wouldn't change a thing.
0:48:04 > 0:48:07I think it's been particularly done well. Nicely refurbished.
0:48:07 > 0:48:10I think they've maximised the living space, good for families.
0:48:10 > 0:48:17'Back in 2007, a four-bed house in Fulham had a value in excess of £800,000.
0:48:17 > 0:48:20'And as Baron invested nearly 800 grand here,
0:48:20 > 0:48:23'he needs at least that level of valuation to see any profit.'
0:48:24 > 0:48:28If he was looking to sell this house, I would look to market it at £850,000,
0:48:28 > 0:48:32looking to achieve £825,000 in the current market.
0:48:32 > 0:48:37I believe the open market value for the property currently is somewhere between £800,000 and £825,000.
0:48:37 > 0:48:44I was hoping for a bit more than this, 850 to 875,
0:48:44 > 0:48:46to be very honest, in this property,
0:48:46 > 0:48:53because our costing here is near enough to 800.
0:48:53 > 0:48:57'Despite prices starting to return to pre-credit-crunch levels,
0:48:57 > 0:49:01'Baron still wants to keep this as a rental investment.'
0:49:01 > 0:49:05If you were to rent this in the family market, which is very strong here,
0:49:05 > 0:49:07I'd look to rent this at £3,300 per calendar month.
0:49:07 > 0:49:13I believe the property should achieve somewhere between £3,250 and £3,500 per calendar month.
0:49:13 > 0:49:17Around £3,200, £3,300 is fine.
0:49:18 > 0:49:25'Baron has, in fact, rented it out for £3,350 per month, which gives him a five percent yield.
0:49:25 > 0:49:28'The project has been far from plain sailing for him.
0:49:28 > 0:49:32'There have been some ups and quite a few downs.
0:49:32 > 0:49:35'But in the end, he's managed to steer the house
0:49:35 > 0:49:38'through the turbulent waters of the current property market.
0:49:38 > 0:49:41'It does appear that the tide is turning for him,
0:49:41 > 0:49:44'with prices returning to nearer the 2007 values.
0:49:44 > 0:49:50'So, in the end, the outcome for Baron isn't far from what he'd hoped when he started this project.'
0:49:50 > 0:49:54# We gotta get right back to where we started from
0:50:03 > 0:50:08'Let us return to the Salford suburb of Little Hulton.
0:50:09 > 0:50:15'Where I visited this dilapidated and decaying three-bed semi-detached.
0:50:18 > 0:50:23'The house was purchased by property developer Sher for £47,000.
0:50:23 > 0:50:26'I joined him for his first ever look inside.'
0:50:28 > 0:50:30# Shock, shock, horror
0:50:32 > 0:50:35A lot of work for me. HE LAUGHS
0:50:37 > 0:50:43'Ever the optimist, Sher took the poor condition of his investment in his stride.'
0:50:43 > 0:50:46- What do you think? - For the price I paid,
0:50:46 > 0:50:50it's a bit dear. THEY LAUGH
0:50:50 > 0:50:54- I love the fact you're still smiling!- I think it's a bit dear.
0:50:54 > 0:50:57- # You gotta keep smiling - # You gotta keep smiling
0:50:57 > 0:51:00# Cos things can't, things can't get much worse
0:51:00 > 0:51:06'Five months later, has Sher transformed this semi from shocking to stunning?'
0:51:06 > 0:51:09# Things can't get much worse
0:51:14 > 0:51:17'The house is looking better already.
0:51:17 > 0:51:23'Sher renovated on a tight budget, aiming for an acceptable finish for the local rental market.
0:51:23 > 0:51:30'In the kitchen, he's fitted new units and installed a boiler for the new central heating system.'
0:51:32 > 0:51:37The kitchen, that was one of the poorest parts of the house.
0:51:37 > 0:51:43So we gave it a bright colour, we put new units in which were bright, as well,
0:51:43 > 0:51:47and we put in a brand new window, as well,
0:51:47 > 0:51:50so that gave it a very nice look.
0:51:50 > 0:51:53'Sher has already let the property out.
0:51:53 > 0:51:57'He had been keen to sell, but was unwilling to leave it empty,
0:51:57 > 0:52:01'as he'd suffered three break-ins during the renovation,
0:52:01 > 0:52:06'with thieves stealing the copper piping and wiring that he'd installed.'
0:52:06 > 0:52:09We kind of got into a bit of a nightmare then, but we got through it.
0:52:09 > 0:52:15When we started the property, they came in through the kitchen window, which is a big window.
0:52:15 > 0:52:21And there were some boards. They took it from there and they came in, damaged the pipes.
0:52:21 > 0:52:27We did it again, we secured the window again with a stainless steel sheet.
0:52:27 > 0:52:33And then they were coming in again and they took all the sheets out
0:52:33 > 0:52:38but it took them so much effort, they couldn't take the wire. They damaged the pipes again.
0:52:38 > 0:52:42So that was another bad thing, really.
0:52:42 > 0:52:45We were a little bit set back, but we were not giving up.
0:52:45 > 0:52:51'Well, he's still smiling, despite the challenges of this tough renovation.
0:52:52 > 0:52:56'The ceiling price for properties in this area is around £70,000,
0:52:56 > 0:52:59'so Sher had to keep the budget under tight control
0:52:59 > 0:53:02'to ensure a decent return on his investment.'
0:53:02 > 0:53:08Originally, I was thinking I would be spending something like £12,000.
0:53:08 > 0:53:12It came to £8,000.
0:53:12 > 0:53:15The reason is because I haven't finished yet.
0:53:15 > 0:53:20There's quite a bit to spend yet on the back garden, the fencing.
0:53:20 > 0:53:25The property we did, generally, just to make it nice and liveable.
0:53:25 > 0:53:29But that's not the end, and I'm sure it'll cost us a couple of grand more.
0:53:29 > 0:53:33'Sher let the flat out four months after purchase.
0:53:33 > 0:53:36Despite his jovial character, he's a serious businessman
0:53:36 > 0:53:42'who's bought more properties to renovate and will continue to work, aided by his cheery attitude.'
0:53:42 > 0:53:47Well, I enjoy life, like I will do. HE LAUGHS
0:53:47 > 0:53:53But then again, work is work and you take it seriously and responsibly.
0:53:53 > 0:53:59But I do enjoy my work, and that's what I've done always, and I like it a lot.
0:53:59 > 0:54:03'Sher now has a portfolio of close to 40 properties,
0:54:03 > 0:54:10'which will give him an income while he pursues his boyhood dream of becoming an aeroplane pilot.'
0:54:10 > 0:54:15This pilot course has been my childhood ambition.
0:54:15 > 0:54:20When I was little, I always thought I was going to fly aeroplanes one day.
0:54:20 > 0:54:23And that ambition never came. HE LAUGHS
0:54:23 > 0:54:28Thank God and thanks to England that I came to this country
0:54:28 > 0:54:30and I think I can do it now and I'm going to do it.
0:54:35 > 0:54:41'Sher's total spend on this property will be about £57,000.
0:54:43 > 0:54:45'We invited along two local estate agents
0:54:45 > 0:54:48'to give us their opinions on his handiwork.'
0:54:48 > 0:54:53The standard of finish is adequate for a tenancy property.
0:54:53 > 0:54:56There is plenty of room for improvement,
0:54:56 > 0:55:00but it's a dilemma for the landlord whether they want to spend the money
0:55:00 > 0:55:03and put in the extra effort for no more rent.
0:55:05 > 0:55:10I think the property is well proportioned and spacious for a three-bedroom home in this area.
0:55:10 > 0:55:13I think it's been renovated to an acceptable standard
0:55:13 > 0:55:17suited to a property for rental or sale within this area.
0:55:17 > 0:55:24I think a little bit more could've been spent on the paintwork and certain of the carpeting.
0:55:25 > 0:55:29'What could this property achieve on the rental market?'
0:55:29 > 0:55:34I would put this on the rental market for £450 per calendar month.
0:55:34 > 0:55:39In the current market for rental, I'd put this property on the market for £450 per calendar month.
0:55:39 > 0:55:45'Well, Sher has let the house for £435 per calendar month,
0:55:45 > 0:55:48'which gives him an impressive yield of nine percent.
0:55:48 > 0:55:56'What about sell-on values, bearing in mind his total outlay of £57,000?'
0:55:56 > 0:56:00I would suggest a resale valuation of £65,000
0:56:00 > 0:56:03and I would hope to achieve in the region of £60,000.
0:56:03 > 0:56:08I think, in the current market, I would probably market this property for sale at about £65,000.
0:56:08 > 0:56:13'Sher feared he'd overpaid for this property.
0:56:13 > 0:56:18'So how does he feel about the fact that there's potential for a profit if he sells?'
0:56:18 > 0:56:22That is good news! Definitely!
0:56:22 > 0:56:29I was thinking it would be about 60. Very good.
0:56:29 > 0:56:35# I just want to fly
0:56:39 > 0:56:43That's it for now. We'll be back next time with more action from the auction.
0:56:43 > 0:56:48Will the buyers make huge profits or a loss? Will you be jealous or relieved?
0:56:48 > 0:56:52- You can find out next time on Homes Under The Hammer. - See you then.- Goodbye.- Goodbye.
0:56:55 > 0:56:59Subtitles by Red Bee Media Ltd
0:56:59 > 0:57:03E-mail subtitling@bbc.co.uk