0:00:02 > 0:00:06Property continues to fascinate people despite the current downturn.
0:00:06 > 0:00:08In fact, the market being less bullish
0:00:08 > 0:00:12- means there are bargains out there. - Buying at the right price is vital
0:00:12 > 0:00:15if you want to see any profit at the end of the day.
0:00:15 > 0:00:17Going to the auction is a great way to do that.
0:00:42 > 0:00:46The three properties on today's show are very different.
0:00:46 > 0:00:49One thing they have in common is that the new owners hope
0:00:49 > 0:00:52they will be making some money. Let's see what they bought.
0:00:54 > 0:00:59I'm in for a rather pleasant surprise at this property in Peckham, south London.
0:00:59 > 0:01:02Wow! Did you expect this from the outside?
0:01:03 > 0:01:06Be careful you don't catch a cold buying this house in Kent.
0:01:06 > 0:01:09My first step would be to get a professional diagnosis
0:01:09 > 0:01:13before seeing how much money to part with on auction day.
0:01:13 > 0:01:17And in Staffordshire, will this flat float my boat?
0:01:17 > 0:01:20Is it grotty or gorgeous?
0:01:20 > 0:01:24At first glance, I think it's teetering towards the second.
0:01:24 > 0:01:29All these properties went to auction and we'll find out who bought them
0:01:29 > 0:01:32and what they paid for them when they went under the hammer.
0:01:32 > 0:01:34Sold.
0:01:38 > 0:01:40I'm in Peckham, south-east London.
0:01:40 > 0:01:44In 1990, this was one of the most deprived areas in the country,
0:01:44 > 0:01:48but there has been a lot of change here since then.
0:01:48 > 0:01:51A huge regeneration scheme was started in 1995
0:01:51 > 0:01:54with £60 million invested in the place,
0:01:54 > 0:01:56and it's certainly taken a turn for the better.
0:02:02 > 0:02:05The property I'm here to see hasn't been touched
0:02:05 > 0:02:07by the regeneration scheme and that's because
0:02:07 > 0:02:14it's actually a Grade 2 listed two-bedroom garden flat in this villa.
0:02:14 > 0:02:20At a guide price of 180,000 quid. Peckham's had a bit of a renovation.
0:02:20 > 0:02:23Let's see if the flat itself needs the same treatment.
0:02:25 > 0:02:28There are a couple of tell-tale signs from the front.
0:02:28 > 0:02:31Windows look as though they might need a bit of work
0:02:31 > 0:02:35but overall, the place appears to be pretty sturdy. One bonus is off-street parking.
0:02:35 > 0:02:39There's space for two or three cars out here
0:02:39 > 0:02:41which is a luxury in London.
0:02:46 > 0:02:49That's not a very good start, is it?
0:02:49 > 0:02:52Clearly, possibly because the house has been unoccupied,
0:02:52 > 0:02:56the doors have swollen, so you need to sort that out straight away.
0:02:56 > 0:02:59Not the most glamorous of entrance foyers there.
0:02:59 > 0:03:04Into the main flat itself, that's nice. Nice high ceilings.
0:03:04 > 0:03:08One massive great room there. I guess that's one of your bedrooms.
0:03:08 > 0:03:12An unusual set of stairs going down to the kitchen and bathroom,
0:03:12 > 0:03:14we'll explore that in a minute, but fantastic!
0:03:14 > 0:03:19Look at this! This, I guess, is your lounge, and wow!
0:03:19 > 0:03:22Did you expect this from the outside?
0:03:22 > 0:03:26How fantastic! Look at this, beautiful old sash windows.
0:03:26 > 0:03:30Glorious though they are, judging by the state of those cords,
0:03:30 > 0:03:34I'm not sure what kind of state they're in. Only one way to find out.
0:03:34 > 0:03:38Oh, they do open, that's good, because it's a specialist job to have these restored
0:03:38 > 0:03:44and being a listed building, you would have to put back something like this.
0:03:44 > 0:03:48Beautiful views out onto the garden and this is fantastic.
0:03:52 > 0:03:56Yes, the space and the size of the rooms with their high ceilings
0:03:56 > 0:03:58and original features are great.
0:03:58 > 0:04:03Yes, the cracks need investigating but boy, does this look good
0:04:03 > 0:04:06for a London flat guided at 180,000!
0:04:09 > 0:04:15So, as I said before, down this rather unusual little staircase.
0:04:15 > 0:04:19We've got a cellar, that's a bit of extra space. Quite useful.
0:04:19 > 0:04:22Bathroom there which is really in a state.
0:04:22 > 0:04:26It's almost like this is a flat of two parts.
0:04:26 > 0:04:29That bit's gorgeous, this bit... bit of a carbuncle.
0:04:29 > 0:04:32Kitchen's not much better unfortunately.
0:04:32 > 0:04:34Really needs a total refurbishment
0:04:34 > 0:04:37but worse than that it's this building that it's in.
0:04:37 > 0:04:40What could you do to this to sort it out? Maybe roof lights,
0:04:40 > 0:04:43maybe knocking through here to open it out into the garden, French doors.
0:04:43 > 0:04:46Unfortunately, you can't just do that willy-nilly
0:04:46 > 0:04:49because the building is Grade 2 listed,
0:04:49 > 0:04:52so despite the fact that this is horrible,
0:04:52 > 0:04:54it was probably added on years and years and years
0:04:54 > 0:04:58after the original flat, the listing probably occurred after this
0:04:58 > 0:05:01was here so this is included in the listing so you have
0:05:01 > 0:05:04to go through all the consents before you do anything.
0:05:04 > 0:05:08That means I think you'd be best to consider a layout change.
0:05:08 > 0:05:10This could be a great utility space.
0:05:10 > 0:05:16If you move the kitchen to the smaller second bedroom,
0:05:16 > 0:05:19and did up the bathroom.
0:05:19 > 0:05:22Then with the other two large rooms you'd have
0:05:22 > 0:05:28a really well-proportioned one bedroom flat oozing character.
0:05:31 > 0:05:35What does a local estate agent make of this period Peckham property?
0:05:35 > 0:05:38I think the kerb appeal of the property, when you drive up
0:05:38 > 0:05:41you've got off-street parking at the front
0:05:41 > 0:05:44but the actual property, where it's situated,
0:05:44 > 0:05:47it takes you back in time as you come up to look at it, it's fantastic.
0:05:47 > 0:05:50As you walk in here, you can see a lot of the original features.
0:05:50 > 0:05:54You've got really high ceilings, really expansive rooms and a lot of space.
0:05:54 > 0:05:59I always believe that real luxury is having space around you, not being cramped up.
0:05:59 > 0:06:02It might come with a lot of space but it's also a lot of work
0:06:02 > 0:06:04and it does have a Grade 2 listing.
0:06:04 > 0:06:07Could that be a potential problem?
0:06:07 > 0:06:10To do this property up, it's going to be a little bit of a love affair
0:06:10 > 0:06:12because there will be a lot of red tape to deal with
0:06:12 > 0:06:15to get it to the point of being able to live in it.
0:06:15 > 0:06:17Whoever buys it, good luck.
0:06:17 > 0:06:22OK, so it might not be easy, but would it be worth doing,
0:06:22 > 0:06:23say, as a rental proposition?
0:06:23 > 0:06:27Once renovated to a good standard, I think this property here would get
0:06:27 > 0:06:30between 1,000 per calendar month and 1,100 per calendar month.
0:06:30 > 0:06:34You'd be looking at resale around the £250,000 mark.
0:06:35 > 0:06:39So not only could this be turned into a great London pad,
0:06:39 > 0:06:41it could also be a very decent investment.
0:06:41 > 0:06:45One thing you can't take for granted with flats in London is that
0:06:45 > 0:06:47you're going to get any kind of outside space,
0:06:47 > 0:06:50but here, another way that this flat scores.
0:06:50 > 0:06:52You've got this lovely garden area.
0:06:52 > 0:06:54It does need sorting out but not going to take long.
0:06:54 > 0:06:56All in all, what a fantastic opportunity.
0:06:56 > 0:07:01Let's see who agreed when it went under the hammer.
0:07:04 > 0:07:06I move on now to lot 87.
0:07:06 > 0:07:10It's a large three room garden flat, apparently it's massive.
0:07:10 > 0:07:14My colleague tells me he's seen it. Big, big three room garden flat.
0:07:14 > 0:07:17What about 150 then, help it on its way?
0:07:17 > 0:07:19150 I've got, thank you.
0:07:19 > 0:07:25155. 160. 165.
0:07:25 > 0:07:30165. 170. 175.
0:07:30 > 0:07:35175. 180. 185.
0:07:35 > 0:07:37185. New place, more competition.
0:07:37 > 0:07:44186, 187, 188, 189,
0:07:44 > 0:07:47190, 191, 192,
0:07:47 > 0:07:54193, 194, 195, 196, 197.
0:07:56 > 0:08:03Big flat, 197. Yes? 197, 198, 199. 199.
0:08:03 > 0:08:08- 200, Sir.- 201?- No?
0:08:08 > 0:08:15If not, it's with you, Sir. Bid's at £200,000 against the lady down here.
0:08:15 > 0:08:18If not, 200 for the first, 200 for the second, 200 for the third
0:08:18 > 0:08:20and final time.
0:08:20 > 0:08:22All done? Sold, 200,000.
0:08:22 > 0:08:27For £20,000 over the guide price at £200,000,
0:08:27 > 0:08:32the new owner of the south London flat is James, an artist.
0:08:32 > 0:08:36I was intrigued to know why he was buying a renovation project of a property.
0:08:36 > 0:08:41James, good to meet you. Congratulations. I love this flat.
0:08:41 > 0:08:45- Thank you.- Obviously you do because you bought it.- That's right.
0:08:45 > 0:08:47Tell me, why you wanted to buy it.
0:08:47 > 0:08:51This much space in London has just got to be good.
0:08:51 > 0:08:57I'm an artist so again space is something that I'm interested in.
0:08:57 > 0:09:01You know, I was just pretty sure it's got to be a good investment
0:09:01 > 0:09:04one way or another. I might well want to live in it.
0:09:04 > 0:09:09- So you bought it potentially to live in?- Yes. I'm considering it, definitely.
0:09:09 > 0:09:11I live in a one-bedroom flat in central London
0:09:11 > 0:09:12and I'm very short of space.
0:09:12 > 0:09:17As London flats go, he's now got an abundance of space.
0:09:17 > 0:09:20With those big windows allowing lots of light to flood in,
0:09:20 > 0:09:25even though James is undecided whether to move in, sell or let it out,
0:09:25 > 0:09:29I can see potential for a fabulous studio here.
0:09:29 > 0:09:33Tell me more about you. You say you're an artist?
0:09:33 > 0:09:37I am a commercial artist. I work as a scenic artist for films.
0:09:37 > 0:09:41I paint big back cloths but work's drying up
0:09:41 > 0:09:44so I'm kind of trying to venture out into different things.
0:09:44 > 0:09:47Right.
0:09:47 > 0:09:49Maybe finally paint a few pictures.
0:09:49 > 0:09:52What kind of movies have you worked on?
0:09:52 > 0:09:55Tim Burton films, Eyes Wide Shut, a Kubrick film.
0:09:55 > 0:10:01- All the big Hollywood films that are made in Pinewood and Shepperton. - Right.
0:10:01 > 0:10:05There might be - last film I worked on which was Captain America had 139 sets.
0:10:05 > 0:10:12- Wow. So you've worked on some massive films, then?- Yes.
0:10:12 > 0:10:17James has now got his own pretty big set to work on here
0:10:17 > 0:10:19but I don't know about Eyes Wide Shut,
0:10:19 > 0:10:24I think he'll need them fully open to envisage what can be done here.
0:10:24 > 0:10:26So in terms of interior design, clearly,
0:10:26 > 0:10:29you are a man who has an eye, what are you going to do?
0:10:29 > 0:10:33Basically, keep the two main rooms which are beautiful, keep them original.
0:10:33 > 0:10:36The hallway, keep it as original as possible.
0:10:36 > 0:10:40The bathroom, a standard bathroom, nothing special.
0:10:40 > 0:10:43And then in the kitchen, the end wall in the kitchen, it is not period
0:10:43 > 0:10:46so there may be no problems with ripping it down
0:10:46 > 0:10:49and putting up double doors and maybe even a glass wall onto the garden.
0:10:49 > 0:10:52I've just noticed the sash window has holes up
0:10:52 > 0:10:56so they will open ride up high so...
0:10:56 > 0:10:59There are exquisite features in this flat which should really be saved.
0:10:59 > 0:11:03I found the shutters downstairs in the cellar for the front
0:11:03 > 0:11:06or back room so they might be able to go back on.
0:11:06 > 0:11:09You hope, you don't know what you're going to find, who knows?
0:11:09 > 0:11:12But there could be lovely things and they are well worth saving.
0:11:15 > 0:11:19So, James is planning quite a sympathetic refurbishment.
0:11:19 > 0:11:22The more he can recover or restore,
0:11:22 > 0:11:24the less money he will have to spend.
0:11:24 > 0:11:27Roughly, how much might it cost to do what you want?
0:11:27 > 0:11:3220 was my kind of marker.
0:11:32 > 0:11:34Outside London, that would definitely do it
0:11:34 > 0:11:37but there is always that London premium.
0:11:37 > 0:11:41You know, for sure, I'm going to sail over it. Maybe I hit 30.
0:11:41 > 0:11:45- I hope I don't go over that, we'll see.- Congratulations.
0:11:45 > 0:11:49- Good luck and we look forward to coming back and seeing some works of art.- Great, thanks a lot.
0:11:49 > 0:11:53Let's hope that James has really got the measure of the amount
0:11:53 > 0:11:55of work needed here.
0:11:55 > 0:12:00Then this relatively small production could be a big success.
0:12:01 > 0:12:06Well, what a perfect location for James to go back to the thing
0:12:06 > 0:12:08he loves most, doing his painting.
0:12:08 > 0:12:11Surely, that will be the draw that makes him
0:12:11 > 0:12:14decide to move into this place once it's sorted out.
0:12:14 > 0:12:17Well, you never know. There's a few things to do before then,
0:12:17 > 0:12:20lots of work to sort this gorgeous place out.
0:12:20 > 0:12:21I'm sure it'll be worth it.
0:12:21 > 0:12:24You can find out what happens later in the show.
0:12:29 > 0:12:32This is Gillingham in Kent, a place that has seen some ups
0:12:32 > 0:12:37and downs financially over the years but last year it caught
0:12:37 > 0:12:41a big chill during the coldest winter in recent memory.
0:12:41 > 0:12:45# Snowflake, snowflake, snowflake
0:12:45 > 0:12:47# Hey, hey, hey, snowflake
0:12:47 > 0:12:51- # My pretty little snowflake - Snowflake
0:12:51 > 0:12:57# Ooh, ooh, ooh, the change in the weather has made it better for me...#
0:12:57 > 0:13:01No, I'm not here to build a snowman here today or go sledging!
0:13:01 > 0:13:04I'm here to see a property conveniently positioned
0:13:04 > 0:13:06near the train station and town centre.
0:13:06 > 0:13:12Now, it's a two bedroom mid-terrace, it's got a guide price of 70-£75,000.
0:13:12 > 0:13:15Now, the original bare brickwork hasn't been touched
0:13:15 > 0:13:18which I think is such a nice feature.
0:13:18 > 0:13:21Let's see if it's as appealing on the inside.
0:13:22 > 0:13:26It certainly good to get in out of the cold on a day like today!
0:13:26 > 0:13:29Now, first impressions, ever so narrow in here.
0:13:29 > 0:13:31There's a doorway here,
0:13:31 > 0:13:35I'm wondering whether it would be worth opening that going through into there.
0:13:35 > 0:13:39Bits of paper peeling off. The walls, definitely feel a bit crumbly.
0:13:39 > 0:13:42I would look at investigating that little area down there.
0:13:42 > 0:13:46It's just a bit awkward, isn't it? You've got a doorway here.
0:13:46 > 0:13:48Close that, you've got a doorway through into there.
0:13:48 > 0:13:51This is obviously the second reception room. Not a bad size.
0:13:51 > 0:13:54You've got an old gas fire here.
0:13:54 > 0:13:57There's also some central heating with a radiator there.
0:13:57 > 0:14:01I'm just wondering whether this old house may need to be rewired,
0:14:01 > 0:14:04re-plumbed, straightaway I'm thinking...
0:14:04 > 0:14:06It needs a complete and utter overhaul.
0:14:06 > 0:14:10The decor does leave a bit to be desired
0:14:10 > 0:14:13and it's not as impressive as I'd hoped.
0:14:13 > 0:14:15The front room needs a makeover as well.
0:14:15 > 0:14:18But the benefit of ripping everything out and starting again
0:14:18 > 0:14:22is that the place can enjoy a complete cosmetic upgrade.
0:14:22 > 0:14:24At least I'm prepared for the kitchen now.
0:14:24 > 0:14:28Well, I think it's safe to say, it's not much better. In fact,
0:14:28 > 0:14:31it's a whole lot worse. This kitchen is out of the Ark.
0:14:31 > 0:14:34I mean, it's not really a kitchen.
0:14:34 > 0:14:38You've got a cupboardy thing here. The thing that's worrying me, are all these walls.
0:14:38 > 0:14:40Look at the state of them.
0:14:40 > 0:14:43You really need to get somebody in here and take
0:14:43 > 0:14:46a look at the structure. I think there's a lot of damp.
0:14:46 > 0:14:48So, it's safe to say, it needs an update.
0:14:48 > 0:14:52# They call me mellow yellow
0:14:52 > 0:14:54# Quite rightly
0:14:54 > 0:14:58# They call me mellow yellow... #
0:14:58 > 0:15:02It's not just the colour and the state of the walls that caught my attention.
0:15:02 > 0:15:06Now something that I've spotted down here worries me.
0:15:06 > 0:15:09I think it's damp because of this tell-tale tidemark
0:15:09 > 0:15:11around the lower section of this wall.
0:15:11 > 0:15:14I'm worried that it could be rising damp. You can see over here
0:15:14 > 0:15:17by this condensation on the windows.
0:15:17 > 0:15:19They're single glazed.
0:15:19 > 0:15:21There's obviously a lot of moisture in the air
0:15:21 > 0:15:23which really doesn't bode well.
0:15:23 > 0:15:25My first step would be to get a professional diagnosis
0:15:25 > 0:15:29before seeing how much money to part with on auction day.
0:15:29 > 0:15:30That's a downside.
0:15:30 > 0:15:34But down there is an upside in the shape of a cellar,
0:15:34 > 0:15:37offering loads of potential storage space.
0:15:37 > 0:15:39But get the damp issues looked at first.
0:15:39 > 0:15:41It may need a damp-proof course.
0:15:42 > 0:15:45And in the garden, well, what's under all that snow
0:15:45 > 0:15:46is anyone's guess,
0:15:46 > 0:15:49but the chances are it's laid to lawn.
0:15:49 > 0:15:53It's also a good size so some positives coming out at last.
0:15:55 > 0:15:58So at the top of the stairs, surprisingly,
0:15:58 > 0:16:00you've got a massive bathroom.
0:16:00 > 0:16:04That's a really big bathroom for the size of this house.
0:16:04 > 0:16:06There's a little bedroom which you could still get
0:16:06 > 0:16:07a double bed in.
0:16:07 > 0:16:13A little cupboard area and the main bedroom. Now, it's quite deceiving.
0:16:13 > 0:16:16Once you're in this property, the room sizes are not bad at all.
0:16:16 > 0:16:18You've got a fireplace here.
0:16:18 > 0:16:21I always want to be a bit nosy and see what's behind there.
0:16:21 > 0:16:24You may have an amazing old fire. Wow.
0:16:24 > 0:16:26But a good size. You can see over here,
0:16:26 > 0:16:28loads of condensation on these windows.
0:16:28 > 0:16:30They're soaking wet.
0:16:30 > 0:16:32You'd need to change all the windows in the property.
0:16:32 > 0:16:36They're all single glazed, no good for the winter.
0:16:36 > 0:16:39But, you know, you can see you need to spend a fair bit of money,
0:16:39 > 0:16:42but once done, could be quite a good little house.
0:16:42 > 0:16:45For those who would be keen to maximise the potential here,
0:16:45 > 0:16:50there's the option of using that bathroom as a third bedroom
0:16:50 > 0:16:52but although the room sizes are not bad,
0:16:52 > 0:16:55finding a place for the bathroom would be tricky
0:16:55 > 0:16:58so maybe it's best to leave it as it is.
0:16:58 > 0:17:00So, is this a sensible place to invest your cash,
0:17:00 > 0:17:04bearing in mind the guide price of 70-75,000?
0:17:05 > 0:17:09With the heavy snow conditions preventing the estate agent's
0:17:09 > 0:17:11visit we rang them instead.
0:17:11 > 0:17:14They said this property fully renovated could sell
0:17:14 > 0:17:17for between 110 to 115,000.
0:17:17 > 0:17:20And for buyers looking at the long term,
0:17:20 > 0:17:25there's a possible rental return of about £600 per calendar month.
0:17:25 > 0:17:27So it all looks good from the outside
0:17:27 > 0:17:29and very pretty in the snow, I must say.
0:17:29 > 0:17:32But it seems to be a bit misleading because it's not looking
0:17:32 > 0:17:35particularly attractive on the inside.
0:17:35 > 0:17:39Nothing that can't be sorted out without a bit of builder know-how, though.
0:17:39 > 0:17:42So let's see who fancied this project over at the auction.
0:17:46 > 0:17:51Lot 79 and what may I say, start me, well it's guided at 70-75,
0:17:51 > 0:17:52start me at 70?
0:17:53 > 0:17:5665, then? I don't mind. 65, I should think so.
0:17:56 > 0:17:59Thank you. At £65,000 is bid.
0:17:59 > 0:18:03And 67, 67 now I have. And 70.
0:18:03 > 0:18:0670, I'm bid. And 70 I have. And 72?
0:18:06 > 0:18:09Does that mean one? 71 is bid.
0:18:09 > 0:18:1472? 72 I have and 73. 73 I'm bid. And 74.
0:18:15 > 0:18:1974 and 75? 75 and 76.
0:18:19 > 0:18:21At 77.
0:18:21 > 0:18:2377, and 78. And 80.
0:18:25 > 0:18:2880 I have. 81, 81, 82.
0:18:28 > 0:18:30And 83. And 84.
0:18:33 > 0:18:3584 is bid and 85? No, 84 I have.
0:18:35 > 0:18:39You're out at the back at 84,000 in the front. 85 for you?
0:18:39 > 0:18:4185 in a fresh place.
0:18:41 > 0:18:44And 86? 86 I have. And 87?
0:18:44 > 0:18:46Is that one bid and stop?
0:18:47 > 0:18:5286,000 I have. Being sold for the first time at 86,000.
0:18:52 > 0:18:55Being sold for the second time at 86,000.
0:18:55 > 0:19:00Being sold for the third and final time, your bid, sir at 86,000, are you all done?
0:19:00 > 0:19:02Sold at 86,000.
0:19:04 > 0:19:09The successful bidders who got the lot for 86,000
0:19:09 > 0:19:11were married couple Phil and Pat.
0:19:11 > 0:19:13They live half-an-hour away in Dartford
0:19:13 > 0:19:17and this is their first ever property renovation project.
0:19:17 > 0:19:20They got wrapped up and met me to discuss their plans.
0:19:20 > 0:19:24- Guys, congratulations, I bet you are thrilled to bits?- Yes.
0:19:24 > 0:19:28- You paid over the guide price, what was your maximum bid? - It was actually 88,
0:19:28 > 0:19:31was the maximum. So very close to top.
0:19:31 > 0:19:33- So you just got in there? - Just got in there.
0:19:33 > 0:19:36Pat, what was it about this house that you wanted?
0:19:36 > 0:19:39Well, I actually hadn't seen it before we bought it.
0:19:39 > 0:19:43Phil had and he decided that it was eminently doable.
0:19:43 > 0:19:46It's something we have been talking about for a long time.
0:19:46 > 0:19:49He had been in and he said he could do what needed doing
0:19:49 > 0:19:53- and I trust him.- And you believed him!- I believed him, yes.
0:19:53 > 0:19:56When you came round the house the first time,
0:19:56 > 0:19:59what was it that really made you think, I am going to bid for this?
0:19:59 > 0:20:01I thought it needed lots of work doing to it
0:20:01 > 0:20:05but work that I was capable of doing. I didn't want to have to move bathrooms around
0:20:05 > 0:20:09and build extensions because of planning permission which I've never done.
0:20:09 > 0:20:13But kitchens, bathrooms, plastering, wallpapering, that I can manage.
0:20:13 > 0:20:15It was a good one to start with.
0:20:15 > 0:20:17I agree.
0:20:17 > 0:20:21For first timers, it's good to hear that Phil and Pat aren't overstretching themselves
0:20:21 > 0:20:23and being too ambitious.
0:20:23 > 0:20:25Phil's day job as a team manager for an energy company,
0:20:25 > 0:20:29while Pat works part-time as an office administrator.
0:20:29 > 0:20:34So, their backgrounds haven't exactly prepared them for major redevelopment.
0:20:34 > 0:20:38This is the first time we've done anything quite like this.
0:20:38 > 0:20:40Pat, why did you choose Gillingham?
0:20:40 > 0:20:42The price, really.
0:20:42 > 0:20:46We had some cash that I'd inherited from my mother,
0:20:46 > 0:20:48when I had to sell my mother's house after she died,
0:20:48 > 0:20:51and it's just been sitting in the bank, not doing very much.
0:20:51 > 0:20:53We didn't want to get into financing
0:20:53 > 0:20:56because that's a whole different ballgame
0:20:56 > 0:20:59and for the cash that we had, this was the area that we could afford.
0:20:59 > 0:21:03It's not far from home. So here we are.
0:21:03 > 0:21:05Where are you starting with the renovations?
0:21:05 > 0:21:09Phil wants to start at the top and work down with the bathroom
0:21:09 > 0:21:14which is very odd. It's got a strange, slopey ceiling.
0:21:14 > 0:21:16It doesn't actually have a wash basin.
0:21:16 > 0:21:17Take out everything that's there.
0:21:17 > 0:21:20Hopefully move it around a bit so we can put in a bath
0:21:20 > 0:21:23where a normal sized person could stand and have a shower.
0:21:23 > 0:21:28And, upstairs is mainly cosmetic. It's going to need new windows.
0:21:28 > 0:21:32We're hoping to get the windows done fairly soon and the electrics.
0:21:32 > 0:21:34Then, the kitchen will be a major task
0:21:34 > 0:21:38but we may get some of it under our belt before we tackle the kitchen.
0:21:38 > 0:21:42- The kitchen, there isn't really a kitchen.- No. - That needs doing completely.
0:21:44 > 0:21:47It's not just the kitchen that doesn't charm this couple.
0:21:47 > 0:21:53There are the damp issues to face up to which Phil and Pat are getting expert advice on.
0:21:53 > 0:21:57The couple have given themselves six months to do the makeover
0:21:57 > 0:22:03and while a £14,000 budget seems healthy enough for the sort of renovation they want,
0:22:03 > 0:22:06I hope that sorting the damp problems doesn't overstretch it.
0:22:08 > 0:22:11So are you thinking about letting this out, or do up to sell on?
0:22:11 > 0:22:14We've got a slight difference of opinion!
0:22:14 > 0:22:17Phil wants to sell it but I think it will be better let.
0:22:17 > 0:22:19We probably may have to do both those things.
0:22:19 > 0:22:22We may have to let for a year or two, see how the market goes,
0:22:22 > 0:22:25see how the prices go and then sell it on.
0:22:25 > 0:22:28- What do you want to do Phil? - I would like to sell it on and move onto the next one.
0:22:28 > 0:22:31It depends on what the market is like when we've finished.
0:22:31 > 0:22:35If they say it's worth £1,000 more than we spent on it, we'll keep it.
0:22:35 > 0:22:39If it's ten grand, it'll be worth going onto the next one and trying it again.
0:22:39 > 0:22:43Apart from getting qualified tradesmen in for the certified work,
0:22:43 > 0:22:46Phil aims to do the rest himself.
0:22:46 > 0:22:51That should certainly help keep costs down and hopefully realise a healthy profit for the couple.
0:22:51 > 0:22:57Phil's certainly eager, confident and relaxed about his first renovation project.
0:22:57 > 0:22:59What are you most looking forward to, Phil?
0:22:59 > 0:23:02Solving the problems. Finding them and solving them.
0:23:02 > 0:23:04That's what I enjoy about doing this sort of thing at home.
0:23:04 > 0:23:09There's never a problem that we can't manage. There's always a way around it.
0:23:09 > 0:23:13And it's the sense of achievement when I found the problem and sorted it.
0:23:13 > 0:23:15- Pat, isn't he positive?- He is.
0:23:15 > 0:23:19If only there were more people like you in this business!
0:23:19 > 0:23:21That's a really good positive way of looking at it.
0:23:21 > 0:23:25- Do you sometimes worry he may be a little too confident?- Yes.
0:23:27 > 0:23:31# We've got to accentuate the positive
0:23:31 > 0:23:34# Eliminate the negative
0:23:34 > 0:23:38# Latch onto the affirmative
0:23:38 > 0:23:41# And don't mess with Mister In-between #
0:23:41 > 0:23:43It strikes me, Phil, you absolutely love it?
0:23:43 > 0:23:48Yeah. I can't wait to get started. It's something I enjoy doing.
0:23:48 > 0:23:50You don't know what you can do until you try.
0:23:50 > 0:23:53I read something that said, "At the end of your life,
0:23:53 > 0:23:57"you regret more the things that you never did, that you didn't do."
0:23:57 > 0:24:00If we do it, and it doesn't work, well at least we tried.
0:24:00 > 0:24:04- Exactly, and if you don't do it, you would never have known.- Absolutely!
0:24:04 > 0:24:08- Pat, Phil, congratulations. - Thank you.- Good luck.
0:24:08 > 0:24:09- Don't spend too much.- No.
0:24:11 > 0:24:15These two have got so much passion for this property
0:24:15 > 0:24:18and I really admire their attitude.
0:24:18 > 0:24:23I just wonder if Phil will have as much enthusiasm after they've tackled this house.
0:24:23 > 0:24:26You can join me later in the programme to find out what happens.
0:24:27 > 0:24:32Coming up, this Staffordshire flat could be the perfect, little property project.
0:24:32 > 0:24:35Pretty much leave it as it is. All in all, good start.
0:24:37 > 0:24:42We return to Gillingham in Kent where all seems to have gone swimmingly.
0:24:42 > 0:24:44It's a terrific sense of achievement,
0:24:44 > 0:24:47when you look around and see what it was to what it is now.
0:24:48 > 0:24:51But, first, has James reached his favourite part?
0:24:51 > 0:24:54The thing about building work, there is one moment in it
0:24:54 > 0:24:57when it's pleasant and that's when it's finished.
0:25:01 > 0:25:06In Peckham, a large three roomed garden flat went to auction.
0:25:06 > 0:25:10Guided at £180,000, this was one of those properties that,
0:25:10 > 0:25:15although in need of attention, definitely had star potential.
0:25:16 > 0:25:22So who better to purchase it for £200,000 than James, who works in the movie industry.
0:25:23 > 0:25:25I work as a scenic artist for films.
0:25:25 > 0:25:29I paint big backcloths but work's drying up
0:25:29 > 0:25:34so I'm trying to venture out into a few different things.
0:25:34 > 0:25:36What movies have you worked on?
0:25:36 > 0:25:40Tim Burton's films, Eyes Wide Shut, a Kubrick film.
0:25:40 > 0:25:44All the big Hollywood films that are made in Pinewood and Shepperton.
0:25:44 > 0:25:49James had planned to either move into the flat or treat it as a property development.
0:25:49 > 0:25:54With a 20 to £30,000 budget, the scene was set for him
0:25:54 > 0:25:57to carry out his first renovation.
0:25:58 > 0:26:02Well, a full nine months later, we're back.
0:26:06 > 0:26:12From the outside, the new windows are the only real sign of any alteration.
0:26:12 > 0:26:16It inside where hopefully there is a more dramatic change.
0:26:17 > 0:26:20In the large reception room, it looks like he's decided
0:26:20 > 0:26:24to tread the boards with stripped floorboards and replastered walls.
0:26:24 > 0:26:28Having reinstated the old fireplace,
0:26:28 > 0:26:33he's taken a practical approach by putting in a new central heating system.
0:26:34 > 0:26:37This sympathetic style continues in the front bedroom.
0:26:38 > 0:26:41And, along the corridor to the bathroom.
0:26:41 > 0:26:44The bathroom was an absolute wreck.
0:26:44 > 0:26:47The main issue was moving the toilet.
0:26:47 > 0:26:50Then, really, the design fell into place.
0:26:50 > 0:26:53Very simple, clean, little bathroom. I'm pleased with it.
0:26:53 > 0:26:56With a no-nonsense treatment of the bathroom,
0:26:56 > 0:27:00it was just the kitchen and other bedroom to sort out.
0:27:00 > 0:27:03Here originally James had big plans.
0:27:03 > 0:27:09It's the end wall in the kitchen, it's not period so there might be no problems with ripping that down
0:27:09 > 0:27:12and putting double doors or a glass wall onto the garden.
0:27:12 > 0:27:17Unfortunately, in property development, things don't always go smoothly.
0:27:18 > 0:27:23The kitchen's been a nightmare which is related to the planning,
0:27:23 > 0:27:25to the fact that it's Grade 2 listed.
0:27:25 > 0:27:29I wanted to put in French doors in the back wall of the kitchen
0:27:29 > 0:27:33and I've put a planning application in to move one wall,
0:27:33 > 0:27:37remove one wall in the kitchen, put in the French doors
0:27:37 > 0:27:42and put in French doors in the small bedroom and that is just a minefield.
0:27:42 > 0:27:46While James waits to see if he gets that all-important planning permission,
0:27:46 > 0:27:51he's refurbished the kitchen and back bedroom as they are.
0:27:51 > 0:27:56He's still hoping this area could come out of the shadows and into the limelight.
0:27:56 > 0:27:58He's also left the cellar as it was.
0:27:58 > 0:28:02Even so, this has been an extensive renovation.
0:28:02 > 0:28:05Who's played the main role in the story so far?
0:28:06 > 0:28:09You need the main trades, you've got to employ the main trades.
0:28:09 > 0:28:13I managed to do the plastering myself so I saved a lot on that.
0:28:13 > 0:28:18I've done the carpentry myself, I've done a lot of painting
0:28:18 > 0:28:20and decorating and labouring.
0:28:20 > 0:28:23I had some casual labour in when I needed it.
0:28:23 > 0:28:28When James bought this flat, his self-employed work as a scenic set artist
0:28:28 > 0:28:31was starting to dry up, but since then work has picked up
0:28:31 > 0:28:36so he's had to balance a full-time job with this tricky renovation.
0:28:37 > 0:28:40I wouldn't recommend it. It's punishing.
0:28:40 > 0:28:43The thing about building work is there's one moment in it
0:28:43 > 0:28:46when it's pleasant and that's when it's finished.
0:28:46 > 0:28:49That is the only good moment in building.
0:28:49 > 0:28:53Now, as he nears the finishing line, has he decided whether all the effort and heartache
0:28:53 > 0:28:57is to be for his new home or just a property investment?
0:28:57 > 0:29:00# Should I stay or should I go? #
0:29:01 > 0:29:04Curiously undecided still, in a way.
0:29:04 > 0:29:10A warm day like today, this is the most beautiful place to be.
0:29:10 > 0:29:15It's absolutely exquisite. My social life is basically based in west London and I miss that.
0:29:15 > 0:29:20Ideally, I would pick it up and move it to where my friends are and put it down there.
0:29:20 > 0:29:23So James still does not know whether to bite the bullet
0:29:23 > 0:29:27and move in or sell on or rent out.
0:29:27 > 0:29:30But, he needs to make up his mind as time is money.
0:29:30 > 0:29:35I had this figure of £20,000 which I knew was a little bit optimistic.
0:29:35 > 0:29:40So far, on the refurb, I've spent 22,000, around 22,000.
0:29:40 > 0:29:46Because the job was protracted, I spent an extra £7,000 in interest
0:29:46 > 0:29:48which I didn't calculate for.
0:29:48 > 0:29:52That's put me up to nearly 30 so, you know,
0:29:52 > 0:29:55it's 50% more than I was aiming for.
0:29:57 > 0:30:02A £30,000 spend, on top of his £200,000 purchase price
0:30:02 > 0:30:07will take his total outlay to, 230,000 plus costs and fees.
0:30:08 > 0:30:12Will his long-awaited low-budget production be a hit?
0:30:12 > 0:30:14What do two local property critics think?
0:30:16 > 0:30:19Coming into the property, it looks fantastic.
0:30:19 > 0:30:22They've done a simple design, everything's been cleaned up.
0:30:22 > 0:30:26There's new plaster, it's been rewired, kept the original features,
0:30:26 > 0:30:29the sash windows, the high skirting boards, the cornicing...
0:30:29 > 0:30:32Even the fireplace, I don't remember it being there.
0:30:32 > 0:30:37That looks really good and all the floors have been stripped, they look beautiful.
0:30:37 > 0:30:40He's beautified the place and brought out the best of it.
0:30:40 > 0:30:41The rooms are well proportioned,
0:30:41 > 0:30:44they're a lot bigger than what we're used to seeing.
0:30:44 > 0:30:48It's very nice, the decor is nice throughout and the fixtures and fittings are superb.
0:30:48 > 0:30:55Favourable reviews but will James's £230,000 investment bring decent returns?
0:30:55 > 0:30:59Looking at the current market, I'd be looking to put it on for £250,000.
0:30:59 > 0:31:03I recommend marketing the property at £299,995.
0:31:03 > 0:31:06I like the better one. I'm quite fond of that.
0:31:06 > 0:31:11I wouldn't sell it for 250,000 now. I've just worked too hard.
0:31:11 > 0:31:14I wouldn't do it. If that's what it is worth now, I'll sit on it
0:31:14 > 0:31:17and, with a bit of luck, things will improve at some point.
0:31:17 > 0:31:24Those fairly wide ranging estimates means a potential pre-tax profit of between 20 and £70,000.
0:31:24 > 0:31:30James might be in a stronger position to sit on it and rent it out.
0:31:30 > 0:31:34Looking at the rental market, you be looking to put it on for £1,100 per calendar month.
0:31:34 > 0:31:38I'd be able to rent this out for between £1,200 and £1,300 a month.
0:31:38 > 0:31:42I hope it would get £1,300. Let's see, eh?
0:31:43 > 0:31:49At the higher £1,300 a month figure, the yield would be around 6%, which is respectable.
0:31:49 > 0:31:54Will James be rushing back to the auction rooms for the sequel?
0:31:54 > 0:31:57Peckham Property 2 - The Story Continues!
0:31:57 > 0:31:59I'm not in a hurry.
0:31:59 > 0:32:01Not in a hurry. It's punishing.
0:32:01 > 0:32:04This has been a year of absolute hell. And, erm...
0:32:06 > 0:32:09You know, I will forget it and I will look back
0:32:09 > 0:32:11and think it's a good thing I did it.
0:32:11 > 0:32:15But, erm... No, not in a rush.
0:32:15 > 0:32:18For the time being, James is downing tools.
0:32:18 > 0:32:23He's not rushing to stage a return any time soon but maybe after time,
0:32:23 > 0:32:26for reflection, he'll say, "I'll be back."
0:32:32 > 0:32:35What could be nicer than to live in the place where you can
0:32:35 > 0:32:38drift along on a canal boat, or stroll along the towpath,
0:32:38 > 0:32:41yet be in easy reach of Birmingham or Nottingham.
0:32:47 > 0:32:50I'm right by the village of Great Haywood,
0:32:50 > 0:32:53very close to Staffordshire, just five miles away
0:32:53 > 0:32:57and an important junction in the British canal network,
0:32:57 > 0:33:01where the Trent and Mersey meets the Staffordshire and Worcestershire.
0:33:01 > 0:33:07If you want a bit of the country, the rural life close by,
0:33:07 > 0:33:12places like Stafford, you can't go wrong with this really, can you?
0:33:12 > 0:33:17This is a pretty spot for both visitors and as a place to live.
0:33:17 > 0:33:21With today's auction lot five minutes drive from the village centre,
0:33:21 > 0:33:24it's certainly promising as far as location is concerned.
0:33:24 > 0:33:28The property I'm here to see is in one of the more affordable parts of the village
0:33:28 > 0:33:32but extremely popular, nevertheless, especially with renters.
0:33:32 > 0:33:36It's a one-bedroom ground floor flat with a guide price of 35,000 quid.
0:33:36 > 0:33:40It's here. You've also got a bit of garden, which is that bit there.
0:33:40 > 0:33:45This is the next neighbours and you might want to consider doing what they've done,
0:33:45 > 0:33:47having a parking space by lowering the kerb.
0:33:47 > 0:33:51That's something for a bit later. For now, let's take a look inside.
0:33:52 > 0:33:55And, with what looks like fairly new double glazing,
0:33:55 > 0:33:58that decent front garden and a share of the back garden,
0:33:58 > 0:34:03this one-bed flat is off to a good start in my books. Let's hope it continues inside.
0:34:06 > 0:34:09So is it grotty or gorgeous?
0:34:09 > 0:34:13At first glance, it teetering towards the second, which is great news.
0:34:13 > 0:34:16Bathroom and loo there, it's not massive
0:34:16 > 0:34:19but at least you've got a white bathroom suite.
0:34:19 > 0:34:22A bit of money spent in there, I think, would really enhance it
0:34:22 > 0:34:26but perfectly serviceable. Pretty much as is the kitchen.
0:34:26 > 0:34:30It's not exactly a hand built, solid oak, designer kitchen
0:34:30 > 0:34:32but, again, fit for purpose.
0:34:32 > 0:34:35If you're renting this out, pretty much leave it as it is.
0:34:35 > 0:34:37All in all, good start.
0:34:43 > 0:34:47It would not be difficult to bring this up to standard to rent out.
0:34:47 > 0:34:50With a lick of paint and some elbow grease, the bathroom,
0:34:50 > 0:34:53kitchen and double bedroom could all be turned around.
0:34:53 > 0:34:57It wouldn't need much more to get it ready for the resale market.
0:34:57 > 0:34:59A tour of a flat this size,
0:34:59 > 0:35:02is never going to take this long, so this is the final room.
0:35:02 > 0:35:06A good one, it's the living room area and it's a nice size.
0:35:06 > 0:35:12What I do notice, though, we've got electric heaters and in here...
0:35:12 > 0:35:16Yeah, thought so, a storage radiator and a storage tank.
0:35:16 > 0:35:18There's no central heating.
0:35:18 > 0:35:22I would swap this and that for a combination boiler in the kitchen
0:35:22 > 0:35:25and create even more space in here.
0:35:25 > 0:35:27You've got double glazing, that's good,
0:35:27 > 0:35:30a fireplace which would certainly benefit from some modernisation
0:35:30 > 0:35:33but, apart from that, it is what it is.
0:35:33 > 0:35:38A well-presented one-bedroomed flat for a good guide price.
0:35:38 > 0:35:40For around that £35,000 guide price,
0:35:40 > 0:35:43this place looks like it could be a pretty safe investment.
0:35:48 > 0:35:52What does a local estate agent make of this one-bedroomed flat?
0:35:59 > 0:36:01It's a nice sized one-bedroom.
0:36:01 > 0:36:03It's not in too bad condition,
0:36:03 > 0:36:06just could do with a general bit of tidying up.
0:36:06 > 0:36:08If it is looking for a resale, then the bathroom
0:36:08 > 0:36:11and the kitchen are in need of modernisation.
0:36:11 > 0:36:15You could also look into the possibility of putting gas central heating in.
0:36:15 > 0:36:18Investing in new central heating won't cost a fortune
0:36:18 > 0:36:23but how much could it warm up the value of this flat, guided at 35,000?
0:36:23 > 0:36:27If finished to a good standard with new kitchen, bathroom,
0:36:27 > 0:36:32it may fetch in the region of 65 to £70,000.
0:36:32 > 0:36:35The property would rent for £425 per calendar month.
0:36:35 > 0:36:40£425 a month is an annual rental income of over £5,000.
0:36:40 > 0:36:42Keep a tight rein on the renovation budget
0:36:42 > 0:36:45and this one-bedroomed flat could be a nice earner.
0:36:45 > 0:36:48The resale values aren't too shabby, either.
0:36:50 > 0:36:54I think this particular property will appeal to quite a few different types of buyers.
0:36:54 > 0:36:58A good first-time one, for sure, or a rental opportunity.
0:36:58 > 0:37:02There's money to be made here, let's see who agreed when it went under the hammer.
0:37:04 > 0:37:08We now move to the country town of Stafford or just outside
0:37:08 > 0:37:10in the village of Great Haywood.
0:37:10 > 0:37:13A one-bedroomed, leasehold ground floor apartment,
0:37:13 > 0:37:15within a popular village location.
0:37:15 > 0:37:17It's going at 25. 25 bid on my right.
0:37:17 > 0:37:21At £25,000... 30. At £30,000.
0:37:21 > 0:37:2335, is it?
0:37:23 > 0:37:26What are you saying? 31,000.
0:37:26 > 0:37:3032, to you, sir? New bidder, 32 took it there.
0:37:30 > 0:37:3233?
0:37:32 > 0:37:3433, 34?
0:37:34 > 0:37:3734,000. 35?
0:37:38 > 0:37:41£35,000. 36?
0:37:41 > 0:37:43£36,000. 36-and-a-half.
0:37:43 > 0:37:4637?
0:37:46 > 0:37:4837... And a half?
0:37:48 > 0:37:51No? Another half seated? 37-and-a-half.
0:37:51 > 0:37:5338?
0:37:53 > 0:37:5738. 38-and-a-half.
0:37:57 > 0:37:5939? 39.
0:38:01 > 0:38:0439-and-a-half. Make it 40.
0:38:04 > 0:38:0540...
0:38:05 > 0:38:08Another half, sir? Are you sure? You're shaking your head.
0:38:08 > 0:38:1240,000... Leaning on the side wall at £40,000.
0:38:12 > 0:38:14New bidder, right in the corner, 40-and-a-half.
0:38:14 > 0:38:1741? 41, sir?
0:38:17 > 0:38:2141-and-a-half? Shaking his head.
0:38:21 > 0:38:24At £41,000 then. Bid's left at 41, all done.
0:38:24 > 0:38:27Be quick if you're coming back in. 41 once...
0:38:27 > 0:38:2941 twice...
0:38:29 > 0:38:32Third and final time at £41,000...
0:38:32 > 0:38:34Are we all done?
0:38:34 > 0:38:37It's yours, sir, well done.
0:38:38 > 0:38:42So, at £6,000 over the guide price, for 41,000,
0:38:42 > 0:38:46the successful bidders were business partners, Steve and Adrian.
0:38:46 > 0:38:50This was to be their first property development together.
0:38:50 > 0:38:54But with Adrian away on holiday, it was landscape and builder Steve
0:38:54 > 0:38:57who joined me at the one-bedroomed Great Haywood flat.
0:38:57 > 0:39:00- Steve, congratulations.- Hi, there.
0:39:00 > 0:39:04Well done. Tell me why you wanted to buy this flat?
0:39:04 > 0:39:07We thought the market, as it's gone, where the economy is at the moment,
0:39:07 > 0:39:11properties are coming up reasonably priced
0:39:11 > 0:39:14and this one we heard about was coming up at around the 30,000 mark
0:39:14 > 0:39:18and we gave ourselves a leeway and we thought it was a good buy.
0:39:18 > 0:39:21- When you say, "we", who's "we"? - Me and my partner, Adrian.
0:39:21 > 0:39:25We went to the auction and we had success on the night.
0:39:25 > 0:39:27Are you doing this all the time or is it a one-off?
0:39:27 > 0:39:31I have done in the past, in the '80s, I was buying terraced houses
0:39:31 > 0:39:37in the Stoke-on-Trent area for four and £5,000 apiece, which is quite ridiculous when you look back.
0:39:37 > 0:39:41I've had lull because I've been busy building my own business up. I'm self-employed.
0:39:41 > 0:39:44We thought the market's right for getting back into.
0:39:44 > 0:39:48- What you do at the moment? - I do general ground working and paving
0:39:48 > 0:39:50and anything to do with ground work.
0:39:50 > 0:39:55I've actually built a property recently in a village location, which is quite close.
0:39:55 > 0:39:58- You actually built it? - Not physically, but the groundwork to slab,
0:39:58 > 0:40:01because that's the groundwork.
0:40:01 > 0:40:05A couple of pals was involved in shared trades, you know, bricking and joinery
0:40:05 > 0:40:10and three months down the road you've got this house, which is great.
0:40:10 > 0:40:12It's an exciting time to go through.
0:40:19 > 0:40:25Nearly 30 years since Steve first dabbled in property development, he's back again.
0:40:25 > 0:40:30The plan is that this could be the first of many as he and business partner, Adrian,
0:40:30 > 0:40:33hope to build a reasonably sized portfolio.
0:40:33 > 0:40:35Tell me what you're going to do?
0:40:35 > 0:40:39We're going to put a central heating, plumbing system in.
0:40:39 > 0:40:41It's only electrical heaters at the moment.
0:40:41 > 0:40:43We will properly put gas central heating in.
0:40:43 > 0:40:47We'll take a look at the fireplace, that looks a little bit dated.
0:40:47 > 0:40:52The bathroom looks OK. Maybe do something with the kitchen. General refurbishment, really.
0:40:52 > 0:40:56- With a view to renting it out? - Yeah, we'll put it straight back on the market to rent out
0:40:56 > 0:40:58and bring a bit of income back.
0:40:58 > 0:41:03With a rental market in mind, Steve's taking a sensible approach to the refurbishment.
0:41:03 > 0:41:06Not only is a new central heating system more practical,
0:41:06 > 0:41:10it could make the flat more attractive to tenants.
0:41:10 > 0:41:12What is the budget for the work?
0:41:12 > 0:41:19On the preliminary investigation, I think, will get away with about £3,000, or thereabouts.
0:41:19 > 0:41:22It's in better condition than what we thought originally?
0:41:22 > 0:41:27- What including the boiler and stuff? - Yeah, you know yourself with the DIY chains as they are at the moment,
0:41:27 > 0:41:32everybody's cut pricing and you can get your kit fairly reasonable.
0:41:32 > 0:41:34What kind of timescale?
0:41:34 > 0:41:37We're hopefully looking at about four to six weeks.
0:41:37 > 0:41:41Depending on work commitments, such as myself and my partner, Adrian,
0:41:41 > 0:41:45we're busy boys at the moment. We'll slot it in when we can.
0:41:45 > 0:41:48The plumbing, we'll sub out to the main contractor.
0:41:48 > 0:41:50We've got friends in the trade. We'll have no problem.
0:41:50 > 0:41:53- Steve, congratulations, good luck. - Thanks, Martin..
0:41:53 > 0:41:56- We'll see how you get on. - Thank you very much. Cheers.
0:42:02 > 0:42:04Steve certainly seems to know his stuff
0:42:04 > 0:42:08and I think he's bought extremely well here.
0:42:08 > 0:42:13Still, a £3,000 budget to sort this place out? Seems a little tight.
0:42:13 > 0:42:16How will he get on? You can find out later in the show.
0:42:19 > 0:42:23Doing up a property can be time-consuming and expensive?
0:42:23 > 0:42:26So have our new buyers stuck to their plans and their budgets?
0:42:26 > 0:42:27Let's find out.
0:42:31 > 0:42:34Earlier, we braved the worst snow and ice in many decades
0:42:34 > 0:42:38to visit this two-bed terraced house in Gillingham, Kent.
0:42:38 > 0:42:42# Let it snow, let it snow and snow. #
0:42:42 > 0:42:47The weather may have been chilly, but unfortunately the interior didn't warm the heart, either.
0:42:47 > 0:42:52Still, it didn't put off Phil, a team manager at an energy company
0:42:52 > 0:42:55and his wife, Pat, an office administrator.
0:42:55 > 0:42:59They paid 86,000 for the house as a renovation project.
0:42:59 > 0:43:05Phil was confident his DIY skills and positive attitude were going to transform the place.
0:43:05 > 0:43:07There's never a problem that we can't manage.
0:43:07 > 0:43:12There's always a way around it. It's the sense of achievement when I've found the problem
0:43:12 > 0:43:13and sorted it.
0:43:13 > 0:43:15- Pat, isn't he positive?- He is.
0:43:15 > 0:43:19If only there were more people like you in this business!
0:43:19 > 0:43:21That's a good, positive way of looking at it.
0:43:21 > 0:43:25- Do you sometimes worry he maybe a little too confident?- Yes.
0:43:27 > 0:43:31With a £14,000 budget, and a six-month timescale,
0:43:31 > 0:43:35the pair were eager to start tackling this yellow peril.
0:43:35 > 0:43:38It was 11 months later that we caught up with Phil and Pat
0:43:38 > 0:43:43who showed us that the house has changed as much as the weather.
0:43:46 > 0:43:48Well, what a transformation.
0:43:48 > 0:43:53The corridor wall has been taken down to create a spacious, light filled lounge
0:43:53 > 0:43:57and the rear room has been made over in the same style.
0:43:59 > 0:44:05The catastrophic kitchen is now a far more efficient place to rattle those pans.
0:44:05 > 0:44:10The ground floor has got us off to a flying start.
0:44:10 > 0:44:12As you remember, there was a wall that came through here,
0:44:12 > 0:44:16the hallway wall and there was a door and a doorway there.
0:44:16 > 0:44:19That all came down and a RSJ put in.
0:44:19 > 0:44:24This was tongue and groove which made it into a very dark, horrible stairway
0:44:24 > 0:44:27so we took that down and I built that thing there.
0:44:27 > 0:44:29There was a fireplace here,
0:44:29 > 0:44:33just didn't seem to fit in so I bricked that in as well.
0:44:33 > 0:44:35I took away the cupboard doors and opened it out.
0:44:40 > 0:44:45Upstairs, Phil and Pat have kept the bedrooms nice and simple but by restoring
0:44:45 > 0:44:49the fireplaces, they've given the rooms some character.
0:44:50 > 0:44:54Down the landing, and the character, the old bathroom had,
0:44:54 > 0:44:58has thankfully been replaced by a new contemporary suite.
0:45:00 > 0:45:04The layout of the bathroom had to change because the bath was in this corner.
0:45:04 > 0:45:08With the sloping roof, installing a shower would be quite difficult.
0:45:08 > 0:45:09Now the bath is in this corner.
0:45:09 > 0:45:13This has been taken up with the boiler, which is in the cupboard.
0:45:13 > 0:45:16The toilet has been moved over and we've installed a wash basin
0:45:16 > 0:45:21because, although this room was the bathroom before, it had no wash basin.
0:45:21 > 0:45:26A few shelves finishes it off and new windows and there we are.
0:45:26 > 0:45:30Phil and Pat have done a great job with the bathroom
0:45:30 > 0:45:33but it was also here that they faced their biggest problem.
0:45:33 > 0:45:37The most major thing that we weren't expecting was that this wall
0:45:37 > 0:45:40wasn't attached securely to the rest of the house.
0:45:40 > 0:45:45The previous owners had removed part of the chimney breast and not lengthened the rafters.
0:45:45 > 0:45:49When we took the false ceiling away you could see the wall was unsupported.
0:45:49 > 0:45:52The outer layer of the wall had to be removed and rebuilt
0:45:52 > 0:45:54and now it's all been tied in and made safe.
0:45:54 > 0:45:59It's another thing that we're quite proud of that the house that was not in good condition,
0:45:59 > 0:46:03is much safer and secure and comfortable to live in, we hope.
0:46:03 > 0:46:07Throughout the house, Phil and Pat have added new doors,
0:46:07 > 0:46:11new double glazing and have had the place rewired and replumbed.
0:46:11 > 0:46:16The cellar has been damp proofed and tidied, making it useful storage space now.
0:46:16 > 0:46:18It top marks for this makeover.
0:46:18 > 0:46:24The biggest tick must go to Phil, who replastered the property from top to bottom.
0:46:24 > 0:46:28I did a week's intensive plastering course, the week after we bought it
0:46:28 > 0:46:32and thanks to a really good instructor, I've managed to do every room, ceilings,
0:46:32 > 0:46:34apart from the kitchen.
0:46:34 > 0:46:38When the guy, the professional came back to do the kitchen, he said I can come and work for him.
0:46:38 > 0:46:41I'm quite pleased with the result I've got.
0:46:41 > 0:46:44Is there no end to Phil's talents? but he wasn't alone,
0:46:44 > 0:46:48Pat took on all the donkey work breaking the rotten plaster and mixing the new.
0:46:48 > 0:46:54They reckon they've spent 80 days in total renovating the place.
0:46:54 > 0:46:59The only blot in their copybook was that the schedule stretched from six to 11 months.
0:46:59 > 0:47:03That was the one thing that we fell down on was our planning.
0:47:03 > 0:47:05Anticipating how long it takes to do something.
0:47:05 > 0:47:10Because we were only coming down at weekends and because we have quite an active life.
0:47:10 > 0:47:14The whole of January we were involved in a pantomime.
0:47:14 > 0:47:17We've had significant birthdays, holidays.
0:47:17 > 0:47:20We haven't devoted every spare minute to it, which perhaps
0:47:20 > 0:47:23if we had, we would have got it done quicker.
0:47:23 > 0:47:25Yeah, it's done now.
0:47:25 > 0:47:29Pantomime? Well, after this project, perhaps the couple can be
0:47:29 > 0:47:32an all-singing, all-dancing renovation team.
0:47:32 > 0:47:39But before you can say, "behind you" did they manage to put on this show for that £14,000 budget?
0:47:39 > 0:47:4413,900, or thereabouts. Well pleased.
0:47:44 > 0:47:47I over budgeted on some things and under budgeted on others
0:47:47 > 0:47:51and what we've been able to save on some, we've been able to spend on others.
0:47:51 > 0:47:53Yeah, pretty much under budget.
0:47:53 > 0:47:57- Spot-on moneywise but a bit out timewise.- Yeah.
0:48:00 > 0:48:03Add to that their £86,000 purchase price,
0:48:03 > 0:48:07and Phil and Pat's total outlay is about £100,000.
0:48:07 > 0:48:12We asked two local estate agents what they thought of the couple's first renovation.
0:48:14 > 0:48:16They've done a lovely job on it.
0:48:16 > 0:48:20There's a couple of things they could've done different. It's been done really well.
0:48:20 > 0:48:23The great point is the cellar because it's an extra room.
0:48:23 > 0:48:26The bathroom is a lovely size where it is at the moment
0:48:26 > 0:48:29but it'd also make a good further bedroom.
0:48:29 > 0:48:33The kitchen is very compact and nice. It's all clean and tidy.
0:48:33 > 0:48:36The property is very nice.
0:48:36 > 0:48:39I really like downstairs, the way they've opened that up.
0:48:39 > 0:48:43It's made the place so much more modern.
0:48:43 > 0:48:47It's made it brighter, the whole place has got a nice effect,
0:48:47 > 0:48:50without it meaning you haven't got two separate rooms.
0:48:50 > 0:48:54But will returns please Phil and Pat?
0:48:54 > 0:48:57Remember their total spend is 100,000.
0:48:57 > 0:48:59What could they sell it for?
0:48:59 > 0:49:04I definitely would put this property on the market at a value
0:49:04 > 0:49:08of between 105,000 to £120,000.
0:49:08 > 0:49:12Realistically, with the way it's been done, I'd market it at £125,000,
0:49:12 > 0:49:15looking to achieve £120,000.
0:49:15 > 0:49:20Those sort of figures could see the couple with a possible pre-tax profit of up to 25,000.
0:49:20 > 0:49:24That's helped them make their minds up about whether to rent or sell.
0:49:25 > 0:49:30- 115 plus...- It would be very good. If we could sell it, I think we would prefer to sell it.
0:49:30 > 0:49:33If not, we'll let it for a year or so and see what happens.
0:49:33 > 0:49:36If they could sell in the next week or two even better.
0:49:36 > 0:49:37THEY LAUGH
0:49:37 > 0:49:41If they did let the property out, the estate agents estimated values
0:49:41 > 0:49:44would mean a healthy 7 to 8% annual yield.
0:49:44 > 0:49:49Either way, it looks like the couple will have a healthy return for their efforts.
0:49:49 > 0:49:53The final result has left them chuffed but have they discovered a pot of gold
0:49:53 > 0:49:54at the end of the rainbow?
0:49:54 > 0:49:59Yes, it's taken us a long time but now it's a lovely house.
0:49:59 > 0:50:01And, we did that.
0:50:01 > 0:50:03Yeah, it's a terrific sense of achievement
0:50:03 > 0:50:07when you look around to see what it was to what it is now.
0:50:10 > 0:50:13In the pretty Staffordshire village of Great Haywood,
0:50:13 > 0:50:17a tiny one-bedroom ground floor flat went to auction.
0:50:17 > 0:50:22It was snapped up by business partners Steve and Adrian for £41,000
0:50:22 > 0:50:24as their first joint property venture.
0:50:24 > 0:50:26It's yours, sir, well done.
0:50:26 > 0:50:31For Steve, this was a return to business he first dabbled in nearly 30 years ago.
0:50:31 > 0:50:35# We've got to get right back to where we started from. #
0:50:36 > 0:50:41In the '80s I was buying terraced houses in the Stoke-on-Trent area for four and £5,000 apiece.
0:50:41 > 0:50:44It's quite ridiculous when you look back.
0:50:44 > 0:50:48I've had a bit of a lull, I've been busy building my own business up. I'm self-employed.
0:50:48 > 0:50:51We thought the market is just right for getting back into.
0:50:51 > 0:50:56Steve's a landscape builder with 20 years experience in the building trade
0:50:56 > 0:51:00With this little flat, it was more a case of a gentle hop back into the property market
0:51:00 > 0:51:06rather than a giant leap as, quite frankly, it didn't need a massive amount of work.
0:51:06 > 0:51:10Armed with their £3,000 budget, Steve and business partner, Adrian,
0:51:10 > 0:51:12set about upgrading it to rent it out.
0:51:14 > 0:51:16# Right here, right now
0:51:16 > 0:51:17# Right here, right now
0:51:17 > 0:51:19# Right here, right now. #
0:51:19 > 0:51:22Was it the right time to get back to investing in properties?
0:51:23 > 0:51:26Well, 11 weeks later we're back.
0:51:29 > 0:51:32That all-important kerb appeal has definitely been enhanced
0:51:32 > 0:51:38with great off-street parking, created from that previously overgrown front garden.
0:51:38 > 0:51:39Whereas, inside...
0:51:44 > 0:51:48The kitchen, as you could see, was basically fairly new units.
0:51:48 > 0:51:52We stripped all the kitchen out and realigned them all up
0:51:52 > 0:51:56and while they were out we retiled all the kitchen with white tiles,
0:51:56 > 0:52:02put in a new extractor fan, checked all the wiring and redid the floor.
0:52:08 > 0:52:10The bathroom, very similar.
0:52:10 > 0:52:14We were going to leave the bath, then we weren't and in the end...
0:52:14 > 0:52:19For the cost it is nowadays on the DIY stuff, you can put in a new suite in for reasonable
0:52:19 > 0:52:24amount of money, without going silly. We put a new bathroom suite in and retiled the bathroom.
0:52:24 > 0:52:28It's really brightened it up. It's nice and clean and ready for go.
0:52:31 > 0:52:33With a spruce-up in the bedroom,
0:52:33 > 0:52:36it was then just a case of sorting out the lounge.
0:52:36 > 0:52:41Actually, in this room here, we didn't do a great deal of work.
0:52:41 > 0:52:44It was already as it is at the moment.
0:52:44 > 0:52:48We just changed the boiler in this area here
0:52:48 > 0:52:53and the reason for that was because we've had a specially fitted fire that heats the water up
0:52:53 > 0:53:00through the coal fire. It's also electric, so it's the immersion heater, so it does the two things.
0:53:00 > 0:53:04We left the old-fashioned style fireplace in to save any major work there.
0:53:04 > 0:53:07We thought it was acceptable to do what we did.
0:53:07 > 0:53:10Generally, we've just redecorated this in neutral colours
0:53:10 > 0:53:13and really it's ready to put furniture in.
0:53:14 > 0:53:16All pretty straightforward.
0:53:16 > 0:53:20Steve and Adrian contracted out some of the work when they were busy
0:53:20 > 0:53:24but did some internal finishing, such as tiling in the bathroom and kitchen.
0:53:24 > 0:53:29Their main expertise came to the fore when sorting out the front of the flat.
0:53:29 > 0:53:35What we've done here is completely revamped the front elevation of the drive
0:53:35 > 0:53:40to make car parking space for somebody who has vehicles.
0:53:40 > 0:53:43What we did was bring a machine in, clear all the site off,
0:53:43 > 0:53:47dug the hedge out because it was taking up too much space,
0:53:47 > 0:53:52put the nice fencing in and gave it some coloured gravel
0:53:52 > 0:53:56to finish off and a demarcation line there for the border.
0:53:57 > 0:54:00So the off-road parking is ready to go
0:54:00 > 0:54:03but they're still waiting to have the kerb lowered to complete the job.
0:54:03 > 0:54:06That's likely to cost around £600.
0:54:07 > 0:54:10Have they managed to stick to their budget?
0:54:10 > 0:54:15The original budget was around 3,000 when we first thought about it.
0:54:15 > 0:54:20We've gone slightly over that. We've actually done it for around £4,200,
0:54:20 > 0:54:22the whole project.
0:54:23 > 0:54:274,200 all in includes the kerb costs.
0:54:27 > 0:54:30With their £41,000 purchase price added,
0:54:30 > 0:54:34the boys total outlay here is just over £45,000.
0:54:34 > 0:54:38Has this step back into property been a good move?
0:54:38 > 0:54:41What do two local estate agents think?
0:54:43 > 0:54:46It's a nice property. They've done a good job with it.
0:54:46 > 0:54:48It's basically been freshened up.
0:54:48 > 0:54:51The new tiling, replastered walls and painted throughout.
0:54:51 > 0:54:53Communal garden's always a good bonus,
0:54:53 > 0:54:56just have a bit of outside space.
0:54:56 > 0:54:59It does need somebody to go out and freshen it up a bit.
0:55:04 > 0:55:06I think it's a lovely property.
0:55:06 > 0:55:10He's done very simple job, refurb wise.
0:55:10 > 0:55:15He could have done a bit more high spec, but I don't think he'd have got the value on it.
0:55:15 > 0:55:16What he's done, he has done well.
0:55:16 > 0:55:21They were considering this flat as a long-term investment
0:55:21 > 0:55:26so aren't immediately looking for a resale return on their outlay of just over 45,000
0:55:26 > 0:55:29but how would it fare in the current market?
0:55:29 > 0:55:33In the current market, I would expect this one to sell for £65,000.
0:55:33 > 0:55:35In the current sales market,
0:55:35 > 0:55:39I could see the property achieving in the region of 62 to £65,000
0:55:39 > 0:55:43That's superb. That makes me smile because when you work out
0:55:43 > 0:55:45what we gave for the property, and what we spent on it,
0:55:45 > 0:55:49it's been a very good investment, even if we did have to sell it, that is.
0:55:49 > 0:55:53For the immediate future, we will just carry on renting it for a couple of years.
0:55:53 > 0:55:59So a potential pre-tax profit of between 17 and £20,000 before the usual deductions.
0:55:59 > 0:56:02It's the rental value that's crucial.
0:56:02 > 0:56:08In the current market, this property would rent for £425 per calendar month.
0:56:08 > 0:56:14In the current rental market, I would see this property achieving £425 per calendar month.
0:56:14 > 0:56:17That's the sort of figure we were looking at.
0:56:17 > 0:56:19That's ideal, when you work it out on a yearly basis.
0:56:19 > 0:56:23The rental yield is around 11%
0:56:23 > 0:56:28so it may be a small flat but it should generate big revenue.
0:56:28 > 0:56:31It's not a bad return to property investment for Steve, either.
0:56:31 > 0:56:34Is this to be the first of many?
0:56:34 > 0:56:37Yes, certainly, we'll go to auctions again.
0:56:37 > 0:56:40In fact, there's one recently come up around the corner.
0:56:40 > 0:56:44We are still having a look because the money what we paid for this project
0:56:44 > 0:56:48is only the price of a good second-hand car, basically.
0:56:48 > 0:56:51If you think about the investment element, it's a good shout.
0:56:54 > 0:56:58That's it for now. We'll have more intriguing properties for you next time.
0:56:58 > 0:57:01Make sure you join us then for more Homes Under The Hammer.
0:57:01 > 0:57:02- Goodbye.- Goodbye.
0:57:19 > 0:57:23Subtitles by Red Bee Media Ltd