0:00:02 > 0:00:04Hello. When you look back over time,
0:00:04 > 0:00:06the chances are you've never lost money on property.
0:00:06 > 0:00:11That's because over the years it's been a rock-solid investment, despite the downturn.
0:00:11 > 0:00:15- So where can you find yourself a bargain?- At an auction, of course!
0:00:40 > 0:00:44Whether you're buying property as an investment or as somewhere to live,
0:00:44 > 0:00:46you want to make sure you've got a good deal.
0:00:46 > 0:00:52The question today is, did the buyers manage that? Here's what they bought.
0:00:53 > 0:00:54I'm in Netherton, Liverpool,
0:00:54 > 0:00:58where I hold a bit of a candle for this two-bedroom semi.
0:00:58 > 0:01:02Interesting that these aren't really connected to electricity.
0:01:02 > 0:01:04They're purely for decoration and lovely they are.
0:01:05 > 0:01:11In Walworth, South London, elbow grease was in order for whoever bought this one-bed flat.
0:01:11 > 0:01:14Quite a bit of work to do, little bit grubby,
0:01:14 > 0:01:17but it could really scrub up well.
0:01:18 > 0:01:22And in Tiverton, Devon, the downstairs of this former shop is in a terrible state.
0:01:22 > 0:01:24And as for upstairs...
0:01:24 > 0:01:32I'm judging by first impressions...it's equally dreadful.
0:01:33 > 0:01:36All these properties have been sold at auction.
0:01:36 > 0:01:40We'll find out who bought them and what was paid when they went under the hammer.
0:01:40 > 0:01:41Yours, thank you.
0:01:44 > 0:01:47So, where do you think I am today?
0:01:47 > 0:01:52The south coast? Devon? Cornwall, perhaps? Maybe Brighton?
0:01:52 > 0:01:55No. Believe it or not, I'm just outside Liverpool.
0:01:55 > 0:01:57This is the estuary of the Mersey
0:01:57 > 0:02:03and it's also the location for one of Antony Gormley's famous sculptures -
0:02:03 > 0:02:04Another Place.
0:02:07 > 0:02:13This fantastic spectacle consists of 100 cast-iron life-size figures.
0:02:13 > 0:02:17They were built to symbolise the contrasting emotions of hope and sadness
0:02:17 > 0:02:20associated with immigration.
0:02:20 > 0:02:23So will today's property fill me with hope or sadness?
0:02:23 > 0:02:28I'm just north of the city centre in an area called Netherton.
0:02:28 > 0:02:31Very popular with families, and generations seem to stay here.
0:02:31 > 0:02:33I'm here to see this.
0:02:33 > 0:02:37It's a semi-detached house at the guide price of £39,000
0:02:37 > 0:02:42and for that you also get a rather impressive monkey puzzle tree in the garden.
0:02:50 > 0:02:54The front has lots of foliage growing close to the house.
0:02:54 > 0:02:57Whilst a bit of greenery can add to a property's kerb appeal,
0:02:57 > 0:03:00this has a jungle-like quality, which is perhaps hiding
0:03:00 > 0:03:03potentially valuable space for off-street parking.
0:03:05 > 0:03:09Through the front door we've got this useful little porch area,
0:03:09 > 0:03:13somewhere to hang your coat and put your shoes, store the kids' bikes.
0:03:13 > 0:03:16Stairs up to the bedrooms, living room over to that side.
0:03:16 > 0:03:21It's a good-sized space, but what is going on with that decoration?
0:03:21 > 0:03:26Really interesting! A bit dark as you walk through here, but then through into the kitchen.
0:03:26 > 0:03:28It's not a huge space and it, uh...
0:03:28 > 0:03:32Definitely in need of modernisation.
0:03:32 > 0:03:37While you do that, I'd consider extending out into this,
0:03:37 > 0:03:42which is like a little ante-area. Door there through to your garage,
0:03:42 > 0:03:50but by taking out some of this wall you'd make a nice kitchen/living area.
0:03:50 > 0:03:55Lots of work to be done, but it's not a bad canvas on which to paint.
0:03:55 > 0:03:58There is potential for more space here.
0:03:58 > 0:04:01If you were to utilise the garage you could create an extra room.
0:04:01 > 0:04:08That's worth considering, especially if this was bought as a home rather than to sell on or rent out.
0:04:09 > 0:04:15Though clearly there is bits of decorations in this house which is possibly not to everyone's taste.
0:04:15 > 0:04:18These aren't actually connected to any electricity.
0:04:18 > 0:04:21They're purely for decoration and lovely they are too.
0:04:21 > 0:04:27More interestingly, the room itself, at some stage, has been converted to create one big space.
0:04:27 > 0:04:29As I said before, I really like it.
0:04:29 > 0:04:31Not quite sure what's going on with the ceiling!
0:04:31 > 0:04:37There seems to be some kind of soundproofing boards up there.
0:04:37 > 0:04:39But whatever. It's another refurbishment job,
0:04:39 > 0:04:44but from what I can see so far, it's mostly just cosmetic. Which is good.
0:04:46 > 0:04:51It wouldn't take much to get the downstairs of this two-bedroom semi sorted out.
0:04:51 > 0:04:54But can the same be said for upstairs?
0:04:56 > 0:05:02Upstairs, and two really good-sized double bedrooms, but that's not the most interesting bit.
0:05:02 > 0:05:05Look at this. The bathroom, complete with flies.
0:05:05 > 0:05:07We need to get some fly spray there first of all.
0:05:07 > 0:05:11It's clearly in a bit of an interesting, old state,
0:05:11 > 0:05:14but maybe we can take a bit of design influence from this.
0:05:14 > 0:05:21Pink and black. I like that. Very Art Deco 1930, so maybe retain that.
0:05:21 > 0:05:23But apart from that, get rid of the suite.
0:05:23 > 0:05:25It's not a bad-sized space.
0:05:25 > 0:05:29But gut it...and you'd have quite a nice room.
0:05:33 > 0:05:38But unfortunately there are no more Art Deco rooms to be found,
0:05:38 > 0:05:41just some evidence of damp in one of the bedrooms.
0:05:41 > 0:05:44That means look at the roof would be first on my to-do list.
0:05:44 > 0:05:46Soldiering on...
0:05:53 > 0:05:56Out the back there are more trees, again, very close to the house.
0:05:56 > 0:05:58It looks run down, but not that bad.
0:05:58 > 0:06:01We asked along someone from the auction house
0:06:01 > 0:06:05that sold the property with a guide price of £39,000.
0:06:08 > 0:06:11Good property, not too much wrong with it.
0:06:11 > 0:06:15It just needs a little bit of TLC, modernisation, new bathroom,
0:06:15 > 0:06:23kitchen, needs a re-wire. Windows are already in, front door, front and rear gardens both need doing,
0:06:23 > 0:06:28but probably talking about £15,000-£20,000 total spend.
0:06:28 > 0:06:32What could the place be worth as a rental?
0:06:32 > 0:06:37This property would achieve somewhere around £475 per calendar month.
0:06:37 > 0:06:41What could it sell on for once fully refurbished?
0:06:42 > 0:06:46The sales market in this area has picked up in the last six months.
0:06:46 > 0:06:54The market had gone up by 20%. But at the moment we're looking somewhere between £80,000-£85,000.
0:06:54 > 0:06:59Well, a nice enough house, but effort and money needs to spent to sort it out.
0:06:59 > 0:07:03Let's hope there was no monkey business when it went under the hammer.
0:07:03 > 0:07:07Start me at £40,000 for this. £30,000. Let's get on. £30,000.
0:07:07 > 0:07:09Bid me 30.
0:07:09 > 0:07:1030 at the back, then.
0:07:10 > 0:07:14At 30. I was wondering if you were going to start it off. Not a nose scratch this time.
0:07:14 > 0:07:2031, 32, 33, 34...35.
0:07:20 > 0:07:2436. 35, the lady's bid. 500, sir?
0:07:24 > 0:07:2836. 500?
0:07:28 > 0:07:31£36,000. 37.
0:07:31 > 0:07:34500, 38.
0:07:34 > 0:07:35500, 39.
0:07:35 > 0:07:38500...
0:07:38 > 0:07:4030... 500.
0:07:40 > 0:07:42£40,000? 500?
0:07:45 > 0:07:48500. 41. 500.
0:07:49 > 0:07:5142. 500.
0:07:51 > 0:07:5343. 500.
0:07:53 > 0:07:5644. 500. 45.
0:07:56 > 0:07:59500. 46.
0:07:59 > 0:08:02500. 47. 500. 48.
0:08:02 > 0:08:0547,500 at the back now.
0:08:05 > 0:08:08At £47,500 for the first time.
0:08:10 > 0:08:1447,500 for the second time. To the very back of the room.
0:08:15 > 0:08:21For the third and final time, it's going to be sold to the back of the room at £47,500.
0:08:24 > 0:08:25Yours, thank you.
0:08:27 > 0:08:33And with their successful bid of £47,500, it was husband and wife team Mick and Bernie.
0:08:33 > 0:08:35Mick's a self-employed road worker
0:08:35 > 0:08:39and Bernie helps with the books and admin. I met up with Bernie
0:08:39 > 0:08:42back at the property to find out about their plans.
0:08:48 > 0:08:52- Bernie, congratulations.- Thank you. - Nice to meet you.- Nice to meet you.
0:08:52 > 0:08:57- Tell me why you wanted to buy this place.- For me daughter, really.
0:08:57 > 0:09:01We saw it on the internet.
0:09:01 > 0:09:03And she was looking for somewhere
0:09:03 > 0:09:06- and we phoned up and the auction was the next day.- Oh, wow!
0:09:06 > 0:09:10So we ran along to the auction, didn't think we'd get it,
0:09:10 > 0:09:14didn't think for one minute we'd get it, and we did.
0:09:14 > 0:09:17- Right.- And this is what we've got.- There we are.
0:09:17 > 0:09:21- How much chance did you have to look round before you bought it?- Didn't. - HE GASPS
0:09:21 > 0:09:23- Not at all? - No, and I know that's naughty,
0:09:23 > 0:09:27but no, cos we only found out it was in the auction the day before.
0:09:27 > 0:09:32It was too late to do anything, we just went and bid.
0:09:32 > 0:09:35- And what about the legal pack? Did you get a chance to read that? - No.- No?- No.
0:09:35 > 0:09:37HE GASPS
0:09:37 > 0:09:39I know. And I watch your programme all the time
0:09:39 > 0:09:42and you always shout at people for not reading the legal pack,
0:09:42 > 0:09:44but it was too late to get hold of it.
0:09:46 > 0:09:48But, saying that, we live...
0:09:48 > 0:09:51I live around the corner, I was born in the next street,
0:09:51 > 0:09:54so I know the house, I know the history of the house,
0:09:54 > 0:09:58so it wasn't really an issue, the legal pack.
0:09:58 > 0:10:02So, in Bernie's case, her local knowledge might go some way
0:10:02 > 0:10:04to making up for not reading the legal pack.
0:10:04 > 0:10:07But I can't stress enough how important it is
0:10:07 > 0:10:10when buying at auction to know what the potential pitfalls are,
0:10:10 > 0:10:13otherwise it could result in an expensive mistake.
0:10:16 > 0:10:18So what does your daughter think?
0:10:18 > 0:10:22She's delighted, to be honest, delighted. Yeah.
0:10:22 > 0:10:25She came round with us and had a look. At first it was a bit "er...",
0:10:25 > 0:10:28but once we explained what was going to be done,
0:10:28 > 0:10:32the alterations that were going to be made, she was quite happy.
0:10:32 > 0:10:34- And it's a place for her to live? - Yes.
0:10:34 > 0:10:37So a real leg on the property ladder, then?
0:10:37 > 0:10:40Yeah, cos otherwise she hasn't got much chance,
0:10:40 > 0:10:43so we just thought we'd give her a little lift up.
0:10:43 > 0:10:46- So were you happy with what you paid?- Yeah, yeah.
0:10:46 > 0:10:50I thought my husband would go a little bit higher.
0:10:50 > 0:10:54In fact, I'm sure he would've done, but I'd warned him on the way there,
0:10:54 > 0:11:00"No more than 50,000," and he was quite calm during the auction.
0:11:00 > 0:11:04So, yeah, what we paid, I thought, was a fair price.
0:11:04 > 0:11:06Bernie plans to renovate the property,
0:11:06 > 0:11:10including rewiring and installing central heating.
0:11:10 > 0:11:13She'll also re-plaster throughout and install a new bathroom
0:11:13 > 0:11:18and kitchen, as well as new doors, frames and floorboards.
0:11:18 > 0:11:23- What's the budget for the work? - We've got 20,000.- OK.
0:11:23 > 0:11:26- That's reasonable. - We've said 20.
0:11:26 > 0:11:30My daughter Siobhan's hoping to turn the garage into a room.
0:11:30 > 0:11:33She's extending the kitchen out into the garage,
0:11:33 > 0:11:36but leaving a small area at the other end.
0:11:36 > 0:11:40She's having a window put in and a small room there.
0:11:40 > 0:11:43That's a good way of using that space,
0:11:43 > 0:11:46and will make a difference to the kitchen area, too.
0:11:46 > 0:11:49What are the plans for the garden
0:11:49 > 0:11:54and those trees and plants that are close to moving into the house?
0:11:54 > 0:11:57Very close. That's something we'll have to get a tree surgeon onto,
0:11:57 > 0:12:00to look at that tree and see what...
0:12:00 > 0:12:03It'll have to come out, cos she's having French doors.
0:12:03 > 0:12:05And obviously, the close proximity,
0:12:05 > 0:12:08the doors probably wouldn't open, it's that close.
0:12:08 > 0:12:10So that's got to come out.
0:12:10 > 0:12:13- I don't know if you saw the monkey tree.- Of course, can't miss it.
0:12:13 > 0:12:15- That's staying.- Oh, good.
0:12:15 > 0:12:17Keeping the monkey tree.
0:12:17 > 0:12:20- I don't know how far their roots go down.- No, I don't.
0:12:20 > 0:12:23We're going to get somebody to have a look, to check it over for us.
0:12:23 > 0:12:27But it's very, very healthy and Siobhan wants it.
0:12:27 > 0:12:30Everything else taken out of the garden
0:12:30 > 0:12:33- and just leave the monkey tree on its own.- Oh, great.
0:12:33 > 0:12:35- Listen, good luck with it. - Thank you very much.
0:12:35 > 0:12:40- I look forward to seeing how you're getting on.- Right. You're welcome back any time.
0:12:40 > 0:12:44Well, it seems that things have turned out really well for Bernie.
0:12:44 > 0:12:47It couldn't be a better located house.
0:12:47 > 0:12:50Still, lots of work to get it into a state
0:12:50 > 0:12:52that her daughter will be happy with.
0:12:52 > 0:12:55You can find out how they get on later in the show.
0:13:03 > 0:13:06This is Walworth in South East London.
0:13:06 > 0:13:08This area has been a bit of an anomaly -
0:13:08 > 0:13:11so close to the very heart of the city,
0:13:11 > 0:13:13but not the most affluent part.
0:13:13 > 0:13:17However, significant regeneration is taking place and,
0:13:17 > 0:13:21with new green spaces, shops appearing,
0:13:21 > 0:13:25and out-of-date housing being replaced, it may be a very good time
0:13:25 > 0:13:28to take a look at Walworth.
0:13:32 > 0:13:36This part of London took a bit of a hit in the Second World War,
0:13:36 > 0:13:40and lines of attractive Victorian terraces like this
0:13:40 > 0:13:42took the brunt of the bombs.
0:13:42 > 0:13:44Lucky for us, some of them did survive,
0:13:44 > 0:13:48and the lot we're here to see is this property here.
0:13:48 > 0:13:50It's a first-floor one-bedroom flat
0:13:50 > 0:13:53and it had a guide price of £130,000.
0:13:54 > 0:13:59The property is mere steps from Walworth Road,
0:13:59 > 0:14:00with all its facilities,
0:14:00 > 0:14:04and a five-minute walk to the Elephant & Castle Tube station.
0:14:04 > 0:14:05It feels quite hidden here,
0:14:05 > 0:14:08tucked away from the hustle and bustle of loud London.
0:14:08 > 0:14:10The property itself looks attractive
0:14:10 > 0:14:14and next door's flowers are certainly blooming.
0:14:14 > 0:14:17I wonder if the flat will be as colourful and appealing.
0:14:17 > 0:14:20So let's have a little look around the top-floor flat.
0:14:20 > 0:14:23Well, straightaway I can see it's split-level,
0:14:23 > 0:14:26which I like, because it always gives the illusion of space.
0:14:26 > 0:14:29You've got lovely ceiling height here.
0:14:29 > 0:14:33Although I can see straightaway a load of work needs to be done in this property.
0:14:33 > 0:14:37Look at the walls, they all need skimming. Look at that.
0:14:37 > 0:14:40There's years and years of gloss paint on this banister.
0:14:40 > 0:14:43Once that's all peeled away, though, that would look beautiful.
0:14:43 > 0:14:45There definitely is potential here.
0:14:45 > 0:14:48Bathroom, it's sort of squeezed in on the corner,
0:14:48 > 0:14:52but it's got its own window, that always helps with ventilation.
0:14:52 > 0:14:54And fantastic, look, lovely storage.
0:14:54 > 0:14:56Although have a look in there,
0:14:56 > 0:14:58I think you'd only make a bookshelf out of that.
0:14:58 > 0:15:01It's not very deep, bit of a disappointment.
0:15:01 > 0:15:04The kitchen, right at the back of the property,
0:15:04 > 0:15:08and I don't think I need to tell you what you need to do in here.
0:15:08 > 0:15:12The whole place needs to be ripped out, chucked in the skip
0:15:12 > 0:15:15and a brand-new, gorgeous, shiny kitchen fitted.
0:15:15 > 0:15:18Quite a bit of work to do, little bit grubby,
0:15:18 > 0:15:20but it could really scrub up well.
0:15:20 > 0:15:24So whilst a new kitchen and bathroom are needed,
0:15:24 > 0:15:27overall it's not in too bad a state.
0:15:27 > 0:15:31The bedrooms are a decent size and there are some great original features.
0:15:31 > 0:15:34The floorboards would benefit from a good sanding,
0:15:34 > 0:15:37but before you do that, check the lease conditions
0:15:37 > 0:15:40as sometimes there are restrictions from the freeholder.
0:15:40 > 0:15:42I'm really falling for this place.
0:15:42 > 0:15:45It's not spacious, no, you could never argue that,
0:15:45 > 0:15:50but what do you expect from just the top half of what was once a little workers' cottage?
0:15:54 > 0:15:57This is where the flat really does come into its own.
0:15:57 > 0:15:59What a lovely room.
0:15:59 > 0:16:03Shame about the fireplace, not original, fake stone cladding,
0:16:03 > 0:16:05I'd like to see something a little more traditional
0:16:05 > 0:16:07and in keeping in its place.
0:16:07 > 0:16:09But these windows are what really get me excited.
0:16:09 > 0:16:13You've got two in here, original sashes, beautiful.
0:16:13 > 0:16:17I think, by far, this is my favourite room.
0:16:17 > 0:16:21# Smile like you mean it. #
0:16:23 > 0:16:27And I really mean it. It's just as well this space works
0:16:27 > 0:16:29since it'll be where you spend most of your time.
0:16:29 > 0:16:33It's lovely to find these large rooms at the front of houses still intact,
0:16:33 > 0:16:37not subdivided to create a kitchen/diner or a second bedroom.
0:16:37 > 0:16:42But is there any way to make more of it without going stud wall crazy?
0:16:43 > 0:16:46There are two other first-floor flats on the same street
0:16:46 > 0:16:49that have recently gone up for sale.
0:16:49 > 0:16:53One for £233,000 and one for £235,000.
0:16:53 > 0:16:58So it's fair to say once renovated, the property could go on the market
0:16:58 > 0:17:00for around that figure, which,
0:17:00 > 0:17:04if the flat was bought for the guide price, is a very decent profit.
0:17:04 > 0:17:09But what about looking into making more money by adding an extra bedroom in the loft?
0:17:09 > 0:17:13Well, there's no-one else on the street that has done the same thing, which is telling,
0:17:13 > 0:17:17and you don't actually own the loft space here, the freeholder does.
0:17:17 > 0:17:20So you'd have to make enquiries into buying it,
0:17:20 > 0:17:26potentially for thousands of pounds, and try for planning for which there is no precedent.
0:17:26 > 0:17:29I wouldn't dismiss this plan out of hand,
0:17:29 > 0:17:32but I don't think it will be easy.
0:17:33 > 0:17:36If you really wanted that extra space, then go for it,
0:17:36 > 0:17:40but my feeling is that it could be a lot of hassle and expense
0:17:40 > 0:17:43which may equal little or no profit.
0:17:43 > 0:17:46Still, I do like options.
0:17:46 > 0:17:49We asked along a local estate agent to hear his views on this flat,
0:17:49 > 0:17:52which had an auction guide price of £130,000.
0:17:54 > 0:17:57My first impressions of this flat is that it's a great size
0:17:57 > 0:18:02and it's well located, being just by Wharf Road and Elephant & Castle.
0:18:02 > 0:18:04Plenty of natural light throughout
0:18:04 > 0:18:07so it certainly could be a fantastic double bedroom conversion.
0:18:07 > 0:18:10How much would it be worth now and after renovation?
0:18:10 > 0:18:14If I was to put a value on this property in its current condition,
0:18:14 > 0:18:17I would look at in the region of £190,000.
0:18:17 > 0:18:22Fully refurbished, you're certainly looking in the region of £250,000.
0:18:23 > 0:18:25What about rental?
0:18:25 > 0:18:27As far as rentals is concerned,
0:18:27 > 0:18:31you can expect to achieve in the region of £1,250 per calendar month.
0:18:31 > 0:18:35This flat is all about location and character charm,
0:18:35 > 0:18:38two things young buyers and renters are all after.
0:18:38 > 0:18:41A short walk or bike ride to the centre of London
0:18:41 > 0:18:45in an improving area with period features.
0:18:45 > 0:18:46What more could you want?
0:18:46 > 0:18:49Let's see who snapped this one up at the auction.
0:18:51 > 0:18:55One-bed flat, requires modernisation. Handy location.
0:18:56 > 0:18:59Who'd like to start this? 120?
0:19:00 > 0:19:01120.
0:19:01 > 0:19:04125. 125 at the back.
0:19:04 > 0:19:06130.
0:19:06 > 0:19:07135.
0:19:07 > 0:19:10140.
0:19:10 > 0:19:11145.
0:19:11 > 0:19:14A bidding war developed between a few eager participants.
0:19:14 > 0:19:18We rejoin the auction when it's reached 182,000,
0:19:18 > 0:19:21a hefty 52 grand over the guide price.
0:19:21 > 0:19:23182.
0:19:25 > 0:19:26183.
0:19:26 > 0:19:28184. 185.
0:19:28 > 0:19:31186. 187.
0:19:32 > 0:19:36187, sir? 188 with the tie.
0:19:36 > 0:19:37189, new spot.
0:19:37 > 0:19:41190. 191. 192.
0:19:42 > 0:19:49193. 192, sitting down. First time, second time.
0:19:49 > 0:19:51Third and last time, have you all done?
0:19:53 > 0:19:54Sold, 192, well done.
0:19:56 > 0:20:01That successful bid of 192,000 came from Rizvan.
0:20:01 > 0:20:04He's a senior manager for a telecom company
0:20:04 > 0:20:07and has developed several properties in the past.
0:20:07 > 0:20:09I met up with him at the flat to find out
0:20:09 > 0:20:12if local knowledge would help this London lad be successful.
0:20:12 > 0:20:15So how well do you know this area of South London?
0:20:15 > 0:20:18Not, not quite that well.
0:20:18 > 0:20:20I don't live too far away from it, Maida Vale,
0:20:20 > 0:20:23but I tend to deal in properties in North West London.
0:20:23 > 0:20:27This is the first time I've actually come south of the river.
0:20:27 > 0:20:31- So did you view this property prior to the auction?- No, I didn't.
0:20:31 > 0:20:33It was kind of blind when I got it.
0:20:33 > 0:20:36The price seemed very good, I'd done some research,
0:20:36 > 0:20:40looking at the catalogue the night before the auction.
0:20:40 > 0:20:45It seemed... I basically set my limit on what would be a good price.
0:20:45 > 0:20:48I think I went about 5-10k over,
0:20:48 > 0:20:52but overall I am pretty much happy with what I've got.
0:20:52 > 0:20:56So while you were bidding, did you feel that you were taking a slight risk?
0:20:56 > 0:21:00Erm, I think there's always a risk in whatever you do, really.
0:21:00 > 0:21:03Obviously they should be a calculated risk.
0:21:03 > 0:21:10But yeah, yeah, there was a risk, but generally I had a good feeling.
0:21:10 > 0:21:12# And I'm feeling good. #
0:21:19 > 0:21:20A good feeling?
0:21:20 > 0:21:24Well, Rizvan, I'm afraid a good feeling is not quite good enough.
0:21:24 > 0:21:29Feelings and impressions are important once you're inside the property on a viewing,
0:21:29 > 0:21:36but really, a feeling about just a photo in an auction catalogue can be described as a massive gamble.
0:21:36 > 0:21:40However, he had done his research into the regeneration of the area,
0:21:40 > 0:21:43which does make his gamble a little bit safer.
0:21:43 > 0:21:48Rizvan, why would a buyer want this flat? What are you going to do to it?
0:21:48 > 0:21:53Well, there are a few ideas floating in my head at this moment in time.
0:21:53 > 0:21:57One is potentially converting the kitchen into the second bedroom
0:21:57 > 0:21:59and bringing the kitchen into this reception room.
0:21:59 > 0:22:03Obviously, that will make the reception room slightly smaller.
0:22:03 > 0:22:08Another potential is going to the loft, subject to the council giving consent.
0:22:08 > 0:22:14But I think the option which I may go with is stick to the same layout
0:22:14 > 0:22:19and just put in a new kitchen, bathroom and redo up the place.
0:22:19 > 0:22:21I think you're absolutely right.
0:22:21 > 0:22:23This room, in my opinion,
0:22:23 > 0:22:25is too small to share the kitchen with the lounge.
0:22:25 > 0:22:28I think going up into the loft is a great idea,
0:22:28 > 0:22:30although you don't own the freehold of this,
0:22:30 > 0:22:32which means you don't actually own the loft.
0:22:32 > 0:22:36Have you done any research into how much it might cost you to develop?
0:22:36 > 0:22:41I have actually instructed my solicitors to speak with the council
0:22:41 > 0:22:46with regards to looking at if I have usability of the loft since I'm the only one who has access to it.
0:22:46 > 0:22:51We are still trying to get answers from the council.
0:22:51 > 0:22:55Hopefully within a week or so I should be in a position to find out
0:22:55 > 0:22:58whether I can have usability of the loft.
0:22:58 > 0:23:01# Let's go up on the roof. #
0:23:04 > 0:23:09Rizvan is looking at £7,000-£10,000 to do the work
0:23:09 > 0:23:14if he doesn't go up into the loft and £35,000-£40,000 if he does.
0:23:14 > 0:23:19Of course, that doesn't account for how much he'd have to pay to be able to do that, still unknown at present.
0:23:19 > 0:23:23So come on, what's your experience? Have you done this before?
0:23:23 > 0:23:29Erm, I have been doing this for the last four years, part-time, over the weekends.
0:23:29 > 0:23:34In my normal day job, I work in the telecoms sector.
0:23:34 > 0:23:37So this is something I've caught on from the rest of my family,
0:23:37 > 0:23:40who have been in this business for around 40 years now.
0:23:40 > 0:23:42So you are one busy guy,
0:23:42 > 0:23:45you've got a full-time job which takes you all around the country
0:23:45 > 0:23:49and every weekend you've been renovating, converting and a paintbrush in your hand.
0:23:49 > 0:23:53- Am I right?- No, not really.
0:23:53 > 0:23:56The reason for that is because I tend to...
0:23:56 > 0:23:58Because we've already got teams.
0:23:58 > 0:24:02I mentioned earlier my family has been in this business for 40-odd years
0:24:02 > 0:24:05so they have got established teams who have been working on other projects.
0:24:05 > 0:24:09So I tend to bring them into the place and I tell them
0:24:09 > 0:24:11what I want and I leave them to do the work.
0:24:11 > 0:24:13So it's just you and a mobile phone.
0:24:13 > 0:24:16Yeah, it's me on the mobile phone and then obviously
0:24:16 > 0:24:19I do come in the middle for periodic inspections.
0:24:19 > 0:24:21- So you're good at delegating? - Yes. Yes.
0:24:23 > 0:24:25So what's his timescale to do the work?
0:24:27 > 0:24:33I would like to have it ready for the market within four to six weeks.
0:24:33 > 0:24:40And then hoping to achieve the sale eight to ten weeks from today.
0:24:40 > 0:24:42What are you most worried about?
0:24:42 > 0:24:45If I miss the four to six weeks time frame,
0:24:45 > 0:24:50there's some new builds which will be ready for the market
0:24:50 > 0:24:54and I don't want to be competing against them because they tend to be
0:24:54 > 0:24:59studios and they'll also be marketed under the stamp duty price.
0:24:59 > 0:25:02So I'd like to get this off my hands as soon as possible, really.
0:25:02 > 0:25:04Well, I'm really intrigued to see what you do to it,
0:25:04 > 0:25:06how you're going to turn this place around.
0:25:06 > 0:25:10- Good luck. It's been great meeting you today. Well done, thank you. - Thank you.
0:25:10 > 0:25:13If you're not handy with a paint brush,
0:25:13 > 0:25:15you need to be good at delegating,
0:25:15 > 0:25:17skills Rizvan has obviously developed.
0:25:17 > 0:25:22I don't think he should try and squeeze a second bedroom in, though, without that loft conversion.
0:25:22 > 0:25:25And I'm worried that will take a bit longer than he wants.
0:25:25 > 0:25:28You can find out what he decides later in the programme.
0:25:30 > 0:25:34Coming up, in Tiverton, Devon, this building is a write-off, but...
0:25:34 > 0:25:39It doesn't matter because what I'm thinking is development plot. Fantastic.
0:25:40 > 0:25:44In South London, has Rizvan led a charmed life?
0:25:46 > 0:25:49I think I was very, very lucky. It could have been much worse.
0:25:51 > 0:25:55But first, in Liverpool, Bernie's been committed to the cause.
0:25:55 > 0:25:58Our life has been on hold...
0:25:58 > 0:26:01until this project has been completed.
0:26:05 > 0:26:09Back now to Netherton in Liverpool, where Bernie and her husband Mick
0:26:09 > 0:26:13bought this two-bed semi for £47,500.
0:26:13 > 0:26:17The plan was to help their daughter Siobhan get on the property ladder,
0:26:17 > 0:26:22but in their haste to do this, they broke one of the golden rules of buying at auction.
0:26:22 > 0:26:26- What about the legal pack? Did you get a chance to read that? - No.- No?- No.
0:26:27 > 0:26:30I know, and I watch your programme all the time
0:26:30 > 0:26:33and you always shout at people for not reading the legal pack.
0:26:33 > 0:26:35But it was too late to get hold of it.
0:26:35 > 0:26:39But saying that, we live... I live around the corner.
0:26:39 > 0:26:43I was born in the next street so I know the house,
0:26:43 > 0:26:46I know the history of the house, so it wasn't really an issue.
0:26:46 > 0:26:50The house had a jungle-like front garden that was obscuring
0:26:50 > 0:26:55the view somewhat, and inside, it needed some real cosmetic surgery,
0:26:55 > 0:26:58especially on some of the more original features.
0:26:58 > 0:27:03Well, we're back six weeks later to see if this particular monkey puzzle has been solved.
0:27:19 > 0:27:21The new kitchen has been fitted
0:27:21 > 0:27:25and the place now has a more open-plan feel, as Bernie explains.
0:27:27 > 0:27:33So we've open this up to make it an easier access into what is our breakfast room.
0:27:33 > 0:27:36We had the French doors installed to throw some light in
0:27:36 > 0:27:37because it is only small.
0:27:37 > 0:27:40That leads us on to our television room,
0:27:40 > 0:27:44which has turned out really well.
0:27:45 > 0:27:47We had the roof pitched to give us more height
0:27:47 > 0:27:52because the room is quite narrow with the height of the ceiling.
0:27:52 > 0:27:55It makes it look a little bit more spacious.
0:27:55 > 0:27:59Just need to add a television and that room is complete.
0:28:01 > 0:28:04Upstairs, there's a new bathroom suite with a small bath
0:28:04 > 0:28:06replaced by a shower cubicle.
0:28:06 > 0:28:09The whole room has been retiled.
0:28:09 > 0:28:13The bedrooms are nearly complete and now look lovely and bright.
0:28:17 > 0:28:20With new central heating installed, Bernie has turned this place around,
0:28:20 > 0:28:25although it sounds like there were plenty of people on hand to help.
0:28:25 > 0:28:27All the family have been involved.
0:28:27 > 0:28:33My daughter's partner's family have also been up and helped -
0:28:33 > 0:28:37cleaning and moving rubbish and things like that,
0:28:37 > 0:28:41so the whole family have been involved in some way or another.
0:28:47 > 0:28:52As for those gardens, they've been totally cleared apart from the monkey puzzle tree.
0:28:52 > 0:28:54This has given some parking space at the front
0:28:54 > 0:28:57and the back has been cleared too.
0:28:57 > 0:29:01The French windows open up onto some lovely new decking.
0:29:03 > 0:29:08Some serious graft has clearly gone into transforming the outside space.
0:29:10 > 0:29:14My husband and a couple of his work colleagues did the gardens,
0:29:14 > 0:29:16which were hard work.
0:29:16 > 0:29:19I think they were harder than the interior.
0:29:19 > 0:29:2460 tons of rubble, they took out of the back garden.
0:29:24 > 0:29:29He had three 20-ton lorries took rubbish out of the garden.
0:29:29 > 0:29:33With her husband and colleagues kept busy in the gardens,
0:29:33 > 0:29:36what was Bernie's role?
0:29:36 > 0:29:39Well, I've been project managing as much as I can,
0:29:39 > 0:29:44been round to let the joiners and what have you in.
0:29:44 > 0:29:47It has impacted on my life.
0:29:47 > 0:29:49My husband's been coming home from work
0:29:49 > 0:29:52and his tea hasn't been ready and things like that.
0:29:52 > 0:29:55Luckily, he's been patient and a lot of the time,
0:29:55 > 0:29:59he's followed me round here anyway to work.
0:30:00 > 0:30:06Our life has been on hold till this project's been completed.
0:30:06 > 0:30:08Bernie was in charge of the spending.
0:30:08 > 0:30:11So, how close did she stick to that budget?
0:30:11 > 0:30:14Our original budget,
0:30:14 > 0:30:18I budgeted for around 20, possibly 22.
0:30:18 > 0:30:21We've actually spent 25.
0:30:21 > 0:30:24On the basis, we've had more work done than we intended.
0:30:24 > 0:30:27We had the front rendered
0:30:27 > 0:30:32and the garden took a lot more of our budget than we thought it would do.
0:30:32 > 0:30:36When added to the purchase price of 47,500,
0:30:36 > 0:30:39that makes a total outlay of £72,500.
0:30:39 > 0:30:45What do two local property experts think of the house?
0:30:45 > 0:30:47First impressions, I like a house a lot.
0:30:47 > 0:30:50I saw it before the work was carried out.
0:30:50 > 0:30:54Walking around and looking at the finish, you can see that it has been
0:30:54 > 0:30:57done for an owner-occupier as opposed to your typical buy-to-let property.
0:30:57 > 0:31:00My first impressions of the property are very good.
0:31:00 > 0:31:02It's been refurbed to quite a high standard.
0:31:02 > 0:31:05It looks like whoever they got in to do the job,
0:31:05 > 0:31:10they must be quite experienced at doing this type of thing.
0:31:10 > 0:31:12What about the conversion of the garage?
0:31:12 > 0:31:16I think what they've done with the garage is very good,
0:31:16 > 0:31:20it's certainly added value, somewhere in the region of £5,000-£10,000.
0:31:20 > 0:31:24How much would they value the house for?
0:31:24 > 0:31:26A property in this condition, this area,
0:31:26 > 0:31:30I would value at approximately £90,000.
0:31:30 > 0:31:33The resale of the property would be £90,000.
0:31:33 > 0:31:36Very good, yes, that's OK.
0:31:36 > 0:31:38I'm really pleased with that, yeah.
0:31:38 > 0:31:42That would give Bernie and her family a pre-tax profit
0:31:42 > 0:31:46of £17,500, before the usual selling expenses.
0:31:46 > 0:31:47What about rental?
0:31:47 > 0:31:53The rental of the property would be £575-£600 per calendar month.
0:31:53 > 0:31:56The rental value of a property in this condition
0:31:56 > 0:31:58is approximately £600 per calendar month.
0:31:58 > 0:32:02Excellent. Not that we would even consider renting out,
0:32:02 > 0:32:06because my daughter's moving in, but it's good, really good.
0:32:06 > 0:32:09How has the whole experience
0:32:09 > 0:32:14of helping her daughter onto the property ladder gone for Bernie?
0:32:14 > 0:32:18I think it's been a great success. I mean, you've just got to look at it -
0:32:18 > 0:32:21somewhere nice for my daughter and her boyfriend to live
0:32:21 > 0:32:26and I've really enjoyed the whole doing-up of it.
0:32:26 > 0:32:28It's turned out really, really well.
0:32:28 > 0:32:33I would like to buy another house in the same state that this one was in and do it again.
0:32:33 > 0:32:36Next time, I would take my time,
0:32:36 > 0:32:40I wouldn't do it in such a short space of time.
0:32:40 > 0:32:42I would take a little bit longer over it,
0:32:42 > 0:32:45but definitely do it again, yeah.
0:32:47 > 0:32:51# Go west Where the skies are blue
0:32:51 > 0:32:55# Go west This is what we're gonna do... #
0:32:55 > 0:33:00Tiverton in Devon is a market town in the middle of the county.
0:33:00 > 0:33:03In recent years, the population has been steadily on the rise
0:33:03 > 0:33:07and with that, of course, so has the demand for housing.
0:33:07 > 0:33:11I'm here to see a property which had a very interesting price.
0:33:11 > 0:33:15I say that, because they actually said what the reserve was.
0:33:15 > 0:33:19It actually said under £30,000 was the reserve price.
0:33:19 > 0:33:22So, why would that be? Why would they give you that information?
0:33:22 > 0:33:25I think it's because somebody's very keen to sell
0:33:25 > 0:33:27and you'll soon understand why.
0:33:27 > 0:33:30This is the property. It's actually a former shop.
0:33:30 > 0:33:33It's got living accommodation above.
0:33:33 > 0:33:35But don't be fooled by this side -
0:33:35 > 0:33:39once you go inside, it gets much, much, much worse.
0:33:39 > 0:33:42# I'm only happy when it rains
0:33:42 > 0:33:47# I feel good when things are going wrong
0:33:47 > 0:33:50# I only listen to the sad, sad songs... #
0:33:50 > 0:33:52I wasn't exaggerating!
0:33:52 > 0:33:56This garage building is the current entrance to the property
0:33:56 > 0:33:58and judging by the number of puddles,
0:33:58 > 0:34:01it's not even watertight on a rainy day.
0:34:01 > 0:34:03There are holes in the roof
0:34:03 > 0:34:06and Acrow props have been put up to support the beams.
0:34:06 > 0:34:08It's hardly a welcoming entry to a house, is it?'
0:34:11 > 0:34:14Well, you've got a living area here.
0:34:14 > 0:34:18Well, I say living area, I'm not sure you'd particularly want to live in it.
0:34:18 > 0:34:22But then, through to sort of like a rear area at the back.
0:34:22 > 0:34:27Kitchen on the side, I call it a kitchen, it's where a kitchen would be but totally unusable.
0:34:27 > 0:34:31Through here, this steel door actually is to stop people
0:34:31 > 0:34:35going into the front of the property, which is where the shop unit was.
0:34:35 > 0:34:38That's actually completely dangerous and in fact,
0:34:38 > 0:34:41held up by the scaffolding.
0:34:41 > 0:34:44Upstairs, I'll just tell you about it! Three bedrooms and a bathroom.
0:34:44 > 0:34:48Judging by first impressions...
0:34:48 > 0:34:51it's equally dreadful.
0:34:51 > 0:34:53# Danger! Danger!
0:34:53 > 0:34:56# High voltage!
0:34:56 > 0:34:58# When we touch When we kiss... #
0:34:58 > 0:35:02Dreadful indeed and not very safe either.
0:35:02 > 0:35:05There were several rooms we didn't venture into.
0:35:05 > 0:35:07Judging by the dark and dingy light up there,
0:35:07 > 0:35:11it doesn't look as though this place has been lived in for a while.
0:35:11 > 0:35:13Once you get up to the top attic room,
0:35:13 > 0:35:16the height of the building gives the impression
0:35:16 > 0:35:20that there might be a good view of Tiverton out there but for that, we'll have to wait.
0:35:20 > 0:35:23At the rear of the property there are these outbuildings
0:35:23 > 0:35:26and like the rest of the place, they're falling to pieces
0:35:26 > 0:35:29but I've stopped being worried about that
0:35:29 > 0:35:32because I'm not seeing this as something that I would restore any more.
0:35:32 > 0:35:36I'm thinking about knocking the whole thing down, so I'm looking at the footprint.
0:35:36 > 0:35:41The location in Tiverton's really good and there's actually quite a lot of land here.
0:35:41 > 0:35:45So, the fact that, you know, I'm guessing if I leant on that it might fall down,
0:35:45 > 0:35:49it doesn't matter, because what I'm thinking is, development plot. Fantastic!
0:35:49 > 0:35:52We asked the auctioneer who sold the property
0:35:52 > 0:35:54to get his views on this site.
0:35:54 > 0:35:59It had an apparently modest reserve price of under 30,000.
0:35:59 > 0:36:02There's a need for more housing everywhere
0:36:02 > 0:36:05and Tiverton's no different.
0:36:05 > 0:36:08The council are short of affordable accommodation
0:36:08 > 0:36:12and would be keen for anybody who's going to build affordable-type accommodation.
0:36:12 > 0:36:15Encouraging news for people
0:36:15 > 0:36:18wanting to knock this down and create something sympathetic in its place.
0:36:18 > 0:36:23The site's going to take about 10 or £15,000 to clear
0:36:23 > 0:36:28and you'd certainly fit four two/three-storey cottages in its place.
0:36:28 > 0:36:33They'll cost 50,000 each, maybe a fraction more, to create.
0:36:33 > 0:36:39We're talking about a possible budget of £200,000 to build houses on the site.
0:36:39 > 0:36:41What about potential resale values?
0:36:41 > 0:36:45They'll be worth something around £100,000 each.
0:36:45 > 0:36:50Wow, that would be a great return, although it would mean a big capital outlay at the start.
0:36:50 > 0:36:55What rent could you expect from each cottage?
0:36:55 > 0:36:58It's a brilliant rental town.
0:36:58 > 0:37:02You'll get something in the region of £500 per calendar month.
0:37:02 > 0:37:07Well, if that low reserve price of under 30,000 quid didn't get them interested in the auction,
0:37:07 > 0:37:10I think the potential of this place definitely should.
0:37:10 > 0:37:13It's well located in Tiverton, it's a nice-size plot.
0:37:13 > 0:37:17If you accept the fact you're just going to knock it down and start again,
0:37:17 > 0:37:20then I think there's a huge opportunity here to make a lot of money.
0:37:20 > 0:37:23Let's see who fancied it when it went under the hammer.
0:37:23 > 0:37:26The reserve is a very, very reasonable.
0:37:26 > 0:37:31Who'll just start me off nice and simply with £20,000 for lot 29?
0:37:31 > 0:37:3320, sir, thank you, 20 I have. At 20. At 20.
0:37:33 > 0:37:36At 22? And 25, if I may?
0:37:36 > 0:37:3928. And 30? 30?
0:37:39 > 0:37:4130 I have. 32.
0:37:41 > 0:37:4235?
0:37:44 > 0:37:4635, 37, 38.
0:37:46 > 0:37:5140, 42? 42.
0:37:51 > 0:37:5245? Thank you, sir, 45.
0:37:52 > 0:37:5745, 45. 48 in blue, 48.
0:37:57 > 0:37:59- At 48?- Nine.
0:37:59 > 0:38:0149, OK, I will. 49. At 49?
0:38:01 > 0:38:0450. At 50. All over the place.
0:38:04 > 0:38:06I'm going to go 52,
0:38:06 > 0:38:0952, 54's right at the back.
0:38:09 > 0:38:1156, thank you, sir, 56.
0:38:11 > 0:38:1358. 60...
0:38:13 > 0:38:15Two, at 64 is set, 66.
0:38:15 > 0:38:1968, 68. 68 in the blue.
0:38:19 > 0:38:23At 68. 70 is set. At 70, at 70?
0:38:23 > 0:38:27Two. At 72, 72. At 72.
0:38:27 > 0:38:31At 72, you should... Three.
0:38:31 > 0:38:33At 73, at 73.
0:38:33 > 0:38:3874. At 74, 74 is in blue. 74.
0:38:38 > 0:38:4075 or not? 74 I have.
0:38:40 > 0:38:42At 74, once and twice.
0:38:42 > 0:38:4574, now it's serious, you sure and done?
0:38:45 > 0:38:50Third and last time. 74, in the blue, here we go, at 74 and out.
0:38:50 > 0:38:5274, in the blue.
0:38:54 > 0:38:57# Come on, baby, and rescue me
0:38:57 > 0:39:01# Cos I need you by my side... #
0:39:01 > 0:39:06It was Gerry who made the final successful bid of 74,000.
0:39:06 > 0:39:09He works in finance for the oil and gas industry
0:39:09 > 0:39:12and describes himself as a hobby developer.
0:39:12 > 0:39:14He's local to the area,
0:39:14 > 0:39:20but will that knowledge be enough for the mammoth task ahead?
0:39:20 > 0:39:24- Gerry.- Hello!- Congratulations. - Thank you very much. - Now, what have you bought?
0:39:24 > 0:39:26LAUGHTER
0:39:26 > 0:39:29Well, I'm not quite sure, actually.
0:39:29 > 0:39:31I think what I've bought
0:39:31 > 0:39:34is a property in a lot of need of love and care
0:39:34 > 0:39:37and I think we can build
0:39:37 > 0:39:40four pretty decent dwellings here.
0:39:40 > 0:39:44You said love and care - I think a bulldozer springs to mind.
0:39:44 > 0:39:49The care factor is it's actually falling down at the front, as you've seen.
0:39:49 > 0:39:53But what we aim to do, really, is to knock down the existing structure
0:39:53 > 0:39:55but to rebuild it in the same sort of style.
0:39:55 > 0:39:58It is in a Conservation Area.
0:39:58 > 0:40:01But to create four what you'd call "affordable homes"
0:40:01 > 0:40:02with great living space
0:40:02 > 0:40:06and some wonderful views over the Devon hills from the top.
0:40:06 > 0:40:07I'm a great believer,
0:40:07 > 0:40:10there's certainly nothing that's cut and dried here,
0:40:10 > 0:40:14but where everything's cut and dried there's no opportunity, so I hope this is an opportunity.
0:40:14 > 0:40:17# Smash it up
0:40:17 > 0:40:18# Smash it up
0:40:18 > 0:40:21# Smash it up
0:40:21 > 0:40:24# Smash it up. #
0:40:24 > 0:40:29I agree that Gerry will have to demolish the original building as it's in a sorry state,
0:40:29 > 0:40:32but why does he want to build four properties on this site?
0:40:34 > 0:40:37I think there's a real need for affordable housing
0:40:37 > 0:40:41within a number of these Devon towns, Tiverton in particular.
0:40:41 > 0:40:45I think there should be a good supply of people
0:40:45 > 0:40:48waiting to rent good living spaces.
0:40:48 > 0:40:51Great, a social aspect to it as well.
0:40:51 > 0:40:53I don't want to sound too magnanimous, but yeah,
0:40:53 > 0:40:57I'd like to think it would give people some nice places to live as well at a good price.
0:40:57 > 0:41:00Tell me a bit more about you. What do you do when you're not doing this?
0:41:00 > 0:41:03I'm used to much bigger projects than this.
0:41:03 > 0:41:07I'm a civil engineer by background but I've been working in finance.
0:41:07 > 0:41:11I advise on multi-billion pound projects, mostly in oil and gas.
0:41:11 > 0:41:15- Multi-billion?- Multi-billion pound. - Like, how many multi-billions?
0:41:15 > 0:41:20- Well, you name it, but commonly in 5 billion, 10 billion bracket.- Wow!
0:41:20 > 0:41:22I advise on those sorts of projects
0:41:22 > 0:41:25and as there's not a huge amount of oil and gas in this part of the world,
0:41:25 > 0:41:28I have to do a lot of travelling, but it's lovely to come back.
0:41:28 > 0:41:31So, do you have any experience of this kind of thing?
0:41:31 > 0:41:35I think this is probably the most ambitious I've taken on to date,
0:41:35 > 0:41:38although it's not probably the biggest I've taken on to date.
0:41:38 > 0:41:41I have always been interested in property development.
0:41:41 > 0:41:44My parents moved house so many times,
0:41:44 > 0:41:48- I'm one of four children, we had to do a lot of work for them...- Really?
0:41:48 > 0:41:53..on many different properties, and from my teens, really, I've been doing up houses.
0:41:53 > 0:41:56I've got a few properties that I have done this sort of thing to,
0:41:56 > 0:42:01but this is really the most ramshackle I've ever taken on,
0:42:01 > 0:42:04so I think that the vision has to be the greatest here
0:42:04 > 0:42:07and I hope we can do something really quite special here.
0:42:07 > 0:42:11Gerry's aim with this project is to build in a style
0:42:11 > 0:42:14that's is in keeping with existing properties in the area.
0:42:14 > 0:42:18Good news for the locals, but what about his budget and time scale?
0:42:18 > 0:42:22I've really got a budget to do the whole lot, including the purchase, of 225.
0:42:22 > 0:42:26- Right.- I'd like to think we could come in below that.
0:42:26 > 0:42:30I mean, we've got to keep costs down by doing things in one big swoop.
0:42:30 > 0:42:33What kind of time is this going to take, do you think?
0:42:33 > 0:42:37I've got to get plans in for what I intend to do here quite quickly,
0:42:37 > 0:42:39I mean within a couple of months.
0:42:39 > 0:42:41That's been set by the local authority.
0:42:41 > 0:42:46We've had to shore up and make safe the bits that aren't safe, such as where the scaffolding is.
0:42:46 > 0:42:49I'd like to think we can get the main structure up
0:42:49 > 0:42:54so that we can start fittings and electrics, et cetera, inside
0:42:54 > 0:43:00- under a dry roof within a new structure within a year.- Right.
0:43:00 > 0:43:02So, who's actually going to do the work?
0:43:02 > 0:43:06Two builders in particular I've used... We've worked on a number of developments locally.
0:43:06 > 0:43:11They'll be doing most of the work, but we'll be bringing in all sorts of different tradespeople,
0:43:11 > 0:43:16even the local farmer with his tractor might show up during the demolition.
0:43:16 > 0:43:20It's going to be a community project. People have said they'd love to get involved.
0:43:20 > 0:43:22Great. Congratulations. Good luck with it.
0:43:22 > 0:43:24We really look forward to seeing how you get on.
0:43:24 > 0:43:28Gerry's obviously got some ambitious plans for this place,
0:43:28 > 0:43:31but it seems like he's got the whole community behind him.
0:43:31 > 0:43:35Turning this into four houses, I think, makes good financial sense.
0:43:35 > 0:43:40Still, you shouldn't underestimate the work involved in a project like this.
0:43:40 > 0:43:45So, how is he going to get on? You can find out later in the show.
0:43:47 > 0:43:52Time has been impatient as ever. Have our buyers kept to their promises?
0:43:52 > 0:43:55Yes, have all those plans been carried out?
0:43:55 > 0:43:58Has the work been done? Let's go back and find out.
0:44:00 > 0:44:06So, it's back to Walworth in South London now where Rizvan who works in the telecoms sector,
0:44:06 > 0:44:11bought this one-bedroom, top-floor flat for 192,000.
0:44:11 > 0:44:16With some lovely original features, it just looked in need of updating and decorating.
0:44:16 > 0:44:20But Rizvan was also considering extending into the loft
0:44:20 > 0:44:23although he needed to negotiate with the council
0:44:23 > 0:44:27as they had the freehold and control of the roof space.
0:44:27 > 0:44:31We're still trying to get answers from the council.
0:44:31 > 0:44:34Hopefully, within a week or so, I should be in a position
0:44:34 > 0:44:37to find out whether I can have usability of the loft.
0:44:37 > 0:44:40He wanted a quick turnaround on this project
0:44:40 > 0:44:43as he was keen to get it on the market as soon as possible.
0:44:43 > 0:44:48We've returned just over one month later to see how he got on.
0:44:58 > 0:45:02Well, it looks like the quick renovation job that Rizvan was after.
0:45:02 > 0:45:07Everything appears finished and there has been a total freshening up of the place.
0:45:08 > 0:45:12The bathroom has a new suite installed and is totally retiled.
0:45:14 > 0:45:17Next on the menu must be the kitchen.
0:45:18 > 0:45:22We've put in nice, neutral-coloured cabinets in here.
0:45:22 > 0:45:26We've put in some nice, flashy tiles which were chosen by my wife.
0:45:26 > 0:45:31We've put in a new cooker and oven with a hob and extractor fan.
0:45:31 > 0:45:35We put in a nice, decent sink in here.
0:45:35 > 0:45:39I think the costs which we managed to save was with the boiler.
0:45:39 > 0:45:44The boiler seemed fine, it just needed a service.
0:45:44 > 0:45:48So we've basically done that service and we've kept the original boiler.
0:45:55 > 0:46:00Not having to replace the boiler definitely saved Rizvan some money.
0:46:00 > 0:46:02Going to the upper level,
0:46:02 > 0:46:05the bedroom has been re-plastered and decorated.
0:46:05 > 0:46:08What about the living room?
0:46:08 > 0:46:12The whole place itself has been redecorated.
0:46:12 > 0:46:17There used to be a fireplace over here which we've taken out and blocked off.
0:46:17 > 0:46:21The sash windows over here. They were in very, very good condition
0:46:21 > 0:46:24and because they were an original feature,
0:46:24 > 0:46:26they've just been redecorated.
0:46:26 > 0:46:30I'm so glad he opted to keep the original windows.
0:46:30 > 0:46:33They really help retain the character and charm.
0:46:33 > 0:46:35After consulting local estate agents,
0:46:35 > 0:46:39he's decided not to split the living room to make an extra bedroom.
0:46:39 > 0:46:42But what about that possible loft conversion?
0:46:42 > 0:46:46Basically, the head height wasn't exactly great
0:46:46 > 0:46:52and the cost of actually putting in a loft extension and the resale value...
0:46:52 > 0:46:55The numbers didn't really tally up together,
0:46:55 > 0:46:59so I thought it would be much wiser just to keep the existing layout as it is.
0:46:59 > 0:47:03Consulting the local estate agents was the smart thing to do.
0:47:03 > 0:47:06There's no point in spending extra cash
0:47:06 > 0:47:09when the sums don't add up. Although Rizvan took a gamble
0:47:09 > 0:47:12when he bought this property without viewing it,
0:47:12 > 0:47:15considering the apparent smoothness of the renovations,
0:47:15 > 0:47:18despite buying blind, does he feel fortunate?
0:47:18 > 0:47:22I think I was very, very lucky. It could have been much worse.
0:47:22 > 0:47:27But the structure was fine. Works only took three weeks.
0:47:27 > 0:47:31The expectation was that it was going to take four weeks.
0:47:31 > 0:47:34But basically the guys who were working here did a great job
0:47:34 > 0:47:36and they finished much earlier.
0:47:36 > 0:47:42With his reliable team making short work here, did that help the budget?
0:47:42 > 0:47:44We actually went slightly over budget.
0:47:44 > 0:47:46We spent 10,500.
0:47:46 > 0:47:50So, all in all, I think I am pretty much happy
0:47:50 > 0:47:52with what I've spent on it.
0:47:53 > 0:47:59Adding the 10,500 to the purchase price of 192,000
0:47:59 > 0:48:03gives a total outlay of £202,500.
0:48:03 > 0:48:07What do two local estate agents think of Rizvan's renovation?
0:48:09 > 0:48:12My first impressions coming back to the property today
0:48:12 > 0:48:15are really good. Very neutral, very smart, well done.
0:48:15 > 0:48:18It's going to suit a multitude of applicants in the area.
0:48:18 > 0:48:21I think the property's been done to a good standard.
0:48:21 > 0:48:23The standard does reflect the area and the market
0:48:23 > 0:48:27he's trying to promote the property to, so he's done a good job.
0:48:27 > 0:48:29How much rent could this property earn?
0:48:29 > 0:48:31If we were to put this property on the market for rent,
0:48:31 > 0:48:35I would expect it to achieve in the region of £1,200 per calendar month.
0:48:35 > 0:48:38If we were to put this poverty on the rental market today,
0:48:38 > 0:48:41I would expect to achieve around about £1,100 per calendar month.
0:48:41 > 0:48:45That would give a yield of between 6.5% and 7%.
0:48:45 > 0:48:50However, this place has already been marketed for sale by one of these estate agents.
0:48:50 > 0:48:52We were marketing the property
0:48:52 > 0:48:54and we found we had an enormous amount of interest
0:48:54 > 0:48:57from first-time buyers and investors alike.
0:48:57 > 0:49:01When people were viewing the property, it came across that they really liked the space
0:49:01 > 0:49:05and they really liked the fact that it was well done and very neutral.
0:49:05 > 0:49:08That coupled with the location meant that it was always going to be a winner.
0:49:08 > 0:49:12What would the other agent value it at?
0:49:12 > 0:49:15If I was to put this on the open market now,
0:49:15 > 0:49:17I would expect to achieve £235,000.
0:49:17 > 0:49:19I had quite a few offers in.
0:49:19 > 0:49:24The highest one, which I have accepted, is of 230,000.
0:49:24 > 0:49:27So I'm not all that surprised but I am very much happy
0:49:27 > 0:49:30that I've managed to get this offer which I've accepted.
0:49:30 > 0:49:35That gives Rizvan a pre-tax profit of £27,500.
0:49:35 > 0:49:38What does his estate agent think of that?
0:49:38 > 0:49:41I feel that's a fair offer. Had we marketed the property a little bit longer,
0:49:41 > 0:49:44we could maybe have achieved a little bit more.
0:49:44 > 0:49:46But 230 is certainly a fair offer.
0:49:46 > 0:49:50Is Rizvan happy with his decision to go for a quick sale
0:49:50 > 0:49:52or should he have held out for more?
0:49:52 > 0:49:55The aim was to get it up and ready for the market
0:49:55 > 0:49:57and sell it off as soon as possible.
0:49:57 > 0:50:01Timing is crucial cos I wanted to move over to a new property.
0:50:01 > 0:50:04All in all, I'm very much happy with the results.
0:50:04 > 0:50:07This is actually the eighth property Rizvan has bought,
0:50:07 > 0:50:09having sold on all but two of the others.
0:50:09 > 0:50:12What are his plans now?
0:50:12 > 0:50:17The aim medium to long term, is to develop a portfolio
0:50:17 > 0:50:23and gradually leave my job and start managing property full-time.
0:50:27 > 0:50:29Back to Tiverton in Devon now,
0:50:29 > 0:50:34where part-time property developer Gerry bought this dilapidated place for 74,000.
0:50:34 > 0:50:40Even though he's used to conducting multibillion-pound deals
0:50:40 > 0:50:42in his day job in the oil and gas industry,
0:50:42 > 0:50:45he knew he had a challenge on his hands here.
0:50:45 > 0:50:48I've got a few properties that I have done this sort of thing to,
0:50:48 > 0:50:52but this is really the most ramshackle I've ever taken on.
0:50:52 > 0:50:55So I think the vision has to be the greatest here,
0:50:55 > 0:50:59and I hope we can do something really quite special here.
0:50:59 > 0:51:02Jerry's plan was to demolish the crumbling property and,
0:51:02 > 0:51:04as it's a Conservation Area,
0:51:04 > 0:51:08build four cottage-style homes in keeping with the local style.
0:51:08 > 0:51:14Well, 22 months later, we've come back to see if Gerry's vision is now a reality.
0:51:14 > 0:51:18# Beautiful vision
0:51:20 > 0:51:25# Stay with me all of the time
0:51:27 > 0:51:31# Beautiful vision. #
0:51:31 > 0:51:37Well, it's still a building site and very much a work in progress,
0:51:37 > 0:51:39but a lot has been done.
0:51:39 > 0:51:41The old property has been demolished and
0:51:41 > 0:51:44although his original vision of building four dwellings has changed,
0:51:44 > 0:51:50Gerry is well on the way to building three fantastic new homes.
0:51:50 > 0:51:52Originally we thought up to four houses,
0:51:52 > 0:51:56but when I looked at the plans, they were going to be really quite small
0:51:56 > 0:51:58to get four houses here.
0:51:58 > 0:52:00It's a confined site.
0:52:00 > 0:52:04I wanted to have parking and I wanted to have some outside space,
0:52:04 > 0:52:07we needed to have some outside space, utility area, etc,
0:52:07 > 0:52:09for the planning approval.
0:52:09 > 0:52:13I actually thought when I walked around with the architect,
0:52:13 > 0:52:15three is going to be nicer than four.
0:52:15 > 0:52:19And I didn't want to build rabbit hutches, I wanted to build three character properties.
0:52:19 > 0:52:20They're all different.
0:52:29 > 0:52:31Slight change in plan, then,
0:52:31 > 0:52:34with the development now consisting of a two-bedroomed house...
0:52:38 > 0:52:43..and a one-bedroom flat with a two-bedroom maisonette above.
0:52:43 > 0:52:46Also, Gerry wanted to introduce something
0:52:46 > 0:52:49which was slightly lacking in the original property -
0:52:49 > 0:52:51light.
0:52:52 > 0:52:55Yes, so here we are in the two-bedroom maisonette.
0:52:55 > 0:52:59We're standing on what is essentially going to be a thoroughfare.
0:52:59 > 0:53:01We've got the bedroom over there.
0:53:01 > 0:53:06What I really like about this is we're going to have stair access up to the second bedroom,
0:53:06 > 0:53:08which will have some really nice views
0:53:08 > 0:53:11from a Velux window in the circular slated roof.
0:53:11 > 0:53:17We've also tried to use a lot of natural light in the design.
0:53:17 > 0:53:19If you look down here, you can have quite a good view
0:53:19 > 0:53:22of what is essentially quite a pretty Tiverton street.
0:53:22 > 0:53:25I think it's going to be a nice place to live.
0:53:25 > 0:53:30Kitchen, bathroom... Yeah. I'd be pleased to entertain people here.
0:53:30 > 0:53:35# Let me entertain you
0:53:35 > 0:53:39# Entertain you Come on, come on... #
0:53:40 > 0:53:44Well, this project hasn't always been entertaining for Gerry. There's been a lot of hard work.
0:53:44 > 0:53:49Before construction could begin, the old building had to be demolished,
0:53:49 > 0:53:52a technical challenge in itself.
0:53:52 > 0:53:56We had structural engineers involved. We had to be sure that everything was safe.
0:53:56 > 0:53:59In fact, we were using the scaffolding to support the building
0:53:59 > 0:54:02because if you recall when I bought the building,
0:54:02 > 0:54:04the front face over the shop was falling down.
0:54:04 > 0:54:08One of the reasons I got the building for a good price was it was unsafe.
0:54:08 > 0:54:12So we shored everything up and then took it down brick by brick.
0:54:14 > 0:54:17All the windows and the rotten wood out, roof structure, rafters -
0:54:17 > 0:54:19the whole lot.
0:54:19 > 0:54:24Everything we could use, we did. In terms of hard-core.
0:54:24 > 0:54:27Gerry has spent more than he expected.
0:54:27 > 0:54:32He purchased the property for 74,000 and the demolition and building work
0:54:32 > 0:54:34has come in at around 200,000,
0:54:34 > 0:54:39giving him a projected overall outlay of £274,000.
0:54:39 > 0:54:44We asked two local property experts for their opinions on the work so far.
0:54:44 > 0:54:47Well, it's quite a transformation from what was here before.
0:54:47 > 0:54:51It's a new-build development, so it's obviously going to be finished to a good standard.
0:54:51 > 0:54:54It's a good location for getting into town.
0:54:54 > 0:54:57It's really nice to see the developers are replacing
0:54:57 > 0:54:58a lot of the old features
0:54:58 > 0:55:01with the new, up-to-date edition.
0:55:01 > 0:55:04But what they are trying to do is keep those in mind
0:55:04 > 0:55:07with the curved fascia and the sash windows that are going in.
0:55:07 > 0:55:11What about valuations for the two-bedroom house?
0:55:11 > 0:55:15We'd be looking to achieve something in the region of £115,000.
0:55:15 > 0:55:19Around about £120,000 for the house.
0:55:19 > 0:55:22And the two-bedroom maisonette?
0:55:22 > 0:55:24Perhaps 110,000 for the maisonette.
0:55:24 > 0:55:29We would look to market the property at £105,000.
0:55:29 > 0:55:32And finally, the one-bedroom flat.
0:55:32 > 0:55:35Probably in the region of £75,000-£80,000.
0:55:35 > 0:55:40We would expect to achieve something in the region of £85,000.
0:55:40 > 0:55:43So those estimated values would make the whole site
0:55:43 > 0:55:48worth between £295,000-£315,000
0:55:48 > 0:55:52giving Gerry a pre-tax profit of between £21,000-£41,000.
0:55:52 > 0:55:56However, his plans have always been to rent these properties out.
0:55:56 > 0:55:58And the expert's valuations on these properties
0:55:58 > 0:56:06give him an estimated rental income of between £1,250 and £1,525 per month.
0:56:06 > 0:56:09That would mean a yield of between 5% and 6%.
0:56:09 > 0:56:13My plan is normally just to rent them out at slightly below market value
0:56:13 > 0:56:17and get long-term tenants who look after the place,
0:56:17 > 0:56:21treat it as their own, and quid pro quo is I give them a good deal on monthly rental.
0:56:21 > 0:56:24Despite the time this development has taken,
0:56:24 > 0:56:26how does Gerry feel about it all?
0:56:28 > 0:56:31I really enjoyed the whole experience of buying at auction.
0:56:31 > 0:56:34I'm very pleased with how it's turned out.
0:56:34 > 0:56:39I'm very excited about doing further developments in the locality.
0:56:39 > 0:56:43He seems very unfazed by all the challenges he faced.
0:56:43 > 0:56:46What advice would he give other would-be developers?
0:56:46 > 0:56:47I've got a saying,
0:56:47 > 0:56:51if it doesn't frighten you, you're not thinking big enough.
0:56:54 > 0:56:57So many different auction experiences.
0:56:57 > 0:56:59We'll have plenty more where they came from.
0:56:59 > 0:57:02- Look forward to seeing you then. - Goodbye.- Goodbye.
0:57:10 > 0:57:14Subtitles by Red Bee Media Ltd
0:57:14 > 0:57:19E-mail subtitling@bbc.co.uk