0:00:02 > 0:00:06The UK auction property market is worth billions of pounds every year.
0:00:06 > 0:00:10Those are big numbers, so don't be put off by that.
0:00:10 > 0:00:14The auctions are a level playing field. They're open to everybody.
0:00:14 > 0:00:16All you need is a bit of cash and some confidence.
0:00:41 > 0:00:45With thousands of lots going under the hammer each year,
0:00:45 > 0:00:47there is such a huge choice at auction.
0:00:47 > 0:00:50Here are what today's bidders decided to buy
0:00:50 > 0:00:52when they put their hands in the air.
0:00:53 > 0:00:58'I find there's more than one way to tackle this bungalow in Consett, County Durham.'
0:00:58 > 0:01:02Two options. It all depends on what your plans are for the property.
0:01:03 > 0:01:08'In Canterbury, Kent, this property got a thumbs up from me as soon as I stepped inside.'
0:01:08 > 0:01:12Wow! What a lovely, sunny shop front!
0:01:14 > 0:01:16'And in Staffordshire,
0:01:16 > 0:01:21'I get to grips with the ups and downs of property development.'
0:01:21 > 0:01:23I always worried I'd end up in the gutter.
0:01:24 > 0:01:26'All the properties went to auction.
0:01:26 > 0:01:31'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:31 > 0:01:32You bought it. Well done.
0:01:35 > 0:01:38# Bird flying high
0:01:38 > 0:01:42# You know how I feel
0:01:43 > 0:01:45# Sun in the sky
0:01:45 > 0:01:48# You know how I feel
0:01:48 > 0:01:51# Oooh, drifting on my... #
0:01:51 > 0:01:55This is Consett in County Durham,
0:01:55 > 0:02:01but it's a very different Consett from that of 100 or even 30 years ago
0:02:01 > 0:02:04because this was a major steel town,
0:02:04 > 0:02:08with the local steel mills employing over 6,000 people
0:02:08 > 0:02:12and, amongst other things, making the steel for Blackpool Tower.
0:02:12 > 0:02:15But when those mills closed in the 1980s,
0:02:15 > 0:02:18it was obviously devastating to the local economy.
0:02:18 > 0:02:21But in recent times, there has been a lot of investment
0:02:21 > 0:02:24and when that happens, the property developers are back.
0:02:24 > 0:02:27# It's a new dawn, it's a new day
0:02:27 > 0:02:33# It's a new life for me
0:02:33 > 0:02:36- # And I'm feeling good.- #
0:02:41 > 0:02:47'It's just a short stroll from this rolling countryside to the property that was up for auction.
0:02:47 > 0:02:51'But before I even arrived, I had a good feeling about it.'
0:02:51 > 0:02:57The property I'm here to see is in this terrace of former pit bungalows
0:02:57 > 0:03:02built around the 1920s, at the same time as a new pit was sunk locally,
0:03:02 > 0:03:05to house and probably attract workers.
0:03:05 > 0:03:09Compared to some run-down terrace, these would have been a delight.
0:03:09 > 0:03:12They remain very popular even nowadays.
0:03:12 > 0:03:14So what was on offer?
0:03:14 > 0:03:18A three-bedroom bungalow with a guide price of £30,000-£50,000.
0:03:18 > 0:03:20Let's take a look.
0:03:21 > 0:03:24'It's always hard to tell with these terraced bungalows
0:03:24 > 0:03:26'which is the front and which is the back.
0:03:26 > 0:03:31'To sort the mater out, this is the back yard but this is the front door.
0:03:31 > 0:03:35'At the back is the garden and what looks like the front door.
0:03:35 > 0:03:38'So, all clear, then?'
0:03:42 > 0:03:43So, what have we got?
0:03:43 > 0:03:47It's a bit confusing as to which is the main entrance,
0:03:47 > 0:03:50because you've got an entrance on the other side which could be,
0:03:50 > 0:03:54but this is the one I think, practically, you would use more.
0:03:54 > 0:03:59Unfortunately, that leads straight into this part of the property, which is a tiny kitchen
0:03:59 > 0:04:05and that, which is the only bathroom. Not a particularly favourable start.
0:04:05 > 0:04:07But it gets better the further in you go.
0:04:07 > 0:04:10A really nice size room here. I guess this is your living room.
0:04:10 > 0:04:14A big fireplace there. A real fire would be lovely.
0:04:14 > 0:04:17A storage area there and then three bedrooms.
0:04:17 > 0:04:22But just look at the size. Look at the...the space you've got.
0:04:22 > 0:04:25You've got high ceilings, three big bedrooms,
0:04:25 > 0:04:30and it's a very practical house straight away, apart from that bit(!)
0:04:30 > 0:04:34# Backwards all day
0:04:34 > 0:04:36# Hopes are down... #
0:04:36 > 0:04:40'There always has to be some dilemma for us to sink our teeth into.
0:04:40 > 0:04:44'The condition of the bungalow would be plenty to keep you busy.
0:04:44 > 0:04:48'It's tired, dated and has an odd concrete feel to it.
0:04:48 > 0:04:52'In fact, this is probably the first time I've ever seen concrete skirting.
0:04:52 > 0:04:57'It's a very basic space, but I'm assured the build is standard brick construction
0:04:57 > 0:05:00'so you shouldn't have any mortgage issues to worry about.
0:05:00 > 0:05:07'You just need some very springy underlay and good quality carpeting to keep your feet comfy.
0:05:07 > 0:05:10'Now, back to the bathroom dilemma.'
0:05:10 > 0:05:13What about that layout? What are we going to do?
0:05:13 > 0:05:17Well, I guess it comes down to how much you value the bedrooms
0:05:17 > 0:05:22and how much it's going to affect any potential rental on the property.
0:05:22 > 0:05:25You could quite considerably lose one of the bedrooms
0:05:25 > 0:05:28and then move the kitchen into this room, knock through that wall
0:05:28 > 0:05:32to create a really nice kitchen/dining room.
0:05:32 > 0:05:34That would be lovely.
0:05:34 > 0:05:36If you do want to keep the bedrooms, however -
0:05:36 > 0:05:40and it's worth talking to an estate agent if you're renting out
0:05:40 > 0:05:44to find out how much difference that would make to your rental income -
0:05:44 > 0:05:49you could look at creating your extended kitchen there
0:05:49 > 0:05:54and then adding or taking, rather, some space off one of the bedrooms
0:05:54 > 0:05:56to create an internal bathroom.
0:05:56 > 0:05:59Two options. It all depends on what your plans are for the property.
0:06:04 > 0:06:08'Bearing in mind that guide price of £30,000-£50,000,
0:06:08 > 0:06:13'we asked a local estate agent along to hear his thoughts.'
0:06:15 > 0:06:18I think the bungalow has fabulous potential.
0:06:18 > 0:06:20The room sizes are very generous.
0:06:20 > 0:06:23The countryside is a particular draw to people.
0:06:23 > 0:06:27There's possibilities of moving upwards as well as outwards
0:06:27 > 0:06:30and the internal space could be re-jigged to suit your needs.
0:06:30 > 0:06:34'There is space for a loft conversion
0:06:34 > 0:06:37'but the cost of doing it might not be added back on to the resale value.
0:06:37 > 0:06:42'So, for a quick sale, it won't be worth your while,
0:06:42 > 0:06:46'but could be something to think about if you plan to live here and wanted the extra space.
0:06:46 > 0:06:49'What could the rental be here?'
0:06:49 > 0:06:52In good condition, the property would probably rent for
0:06:52 > 0:06:56in the region of £475 per calendar month,
0:06:56 > 0:07:00up to a maximum ceiling of £500 per calendar month.
0:07:00 > 0:07:02'What about a resale value?'
0:07:02 > 0:07:05The property, in its current condition,
0:07:05 > 0:07:09would probably be worth in the region of £55,000.
0:07:09 > 0:07:11When the property was renovated,
0:07:11 > 0:07:15it has the potential to go up to in the region of about £85,000-£90,000.
0:07:15 > 0:07:19'These are valuations for a three-bedroom property.
0:07:19 > 0:07:24'If you turned it into a two-bed, you could lose approximately £10,000 from the resale value
0:07:24 > 0:07:27'and £50 a month off the rental.
0:07:27 > 0:07:33'You'd definitely need to re-jig the bathroom, but in a way that maintains the three bedrooms.'
0:07:33 > 0:07:38I really like this little bungalow. There's lots you could do here.
0:07:38 > 0:07:43And either as a place to live or something to rent out, a really great one to go for.
0:07:43 > 0:07:46Who wouldn't want to buy a property in a place like this?
0:07:46 > 0:07:49Let's find out who agreed when it went under the hammer.
0:07:53 > 0:07:57Moving on to Lot 17, this is a quite deceiving property.
0:07:57 > 0:07:59Three double bedrooms, a terraced bungalow.
0:07:59 > 0:08:03Guided at £35,000-£50,000.
0:08:03 > 0:08:0720? Get me away at 20. Thank you. We're in at 20.
0:08:07 > 0:08:0922. And 24. 26.
0:08:09 > 0:08:1428. And 30. 35. And 40?
0:08:14 > 0:08:16Shake of the head. 40, anywhere?
0:08:16 > 0:08:1940, fresh bidder. 41. 42.
0:08:19 > 0:08:2143?
0:08:21 > 0:08:2342.5, then?
0:08:23 > 0:08:2542.5. 43? 43.5.
0:08:25 > 0:08:2743.5. 44.
0:08:27 > 0:08:2944.5.
0:08:29 > 0:08:31Perhaps 50?
0:08:31 > 0:08:33That's a nice round figure.
0:08:33 > 0:08:35£50,000?
0:08:35 > 0:08:37Yeah, 50. I thought you would.
0:08:37 > 0:08:3951? Shake of the head.
0:08:39 > 0:08:42At £50,000. Do I see £50,500 anywhere?
0:08:42 > 0:08:44£50,500. 51?
0:08:45 > 0:08:4851. 51.5.
0:08:48 > 0:08:5052.
0:08:50 > 0:08:5352? 52.5? A shake of the head.
0:08:53 > 0:08:56At £52,000, with the gentleman standing up at 52.
0:08:57 > 0:09:01At £52,000, then. We're going to sell for the first time.
0:09:02 > 0:09:06At £52,000 for the second. Are you all done at £52,000?
0:09:06 > 0:09:10For the third and final time. Sold! Thank you very much. Well done.
0:09:10 > 0:09:16'That winning bid which secured the bungalow for £52,000 came from Steve and his partner, Gemma.
0:09:16 > 0:09:21'They own and run a rural pub nearby and have another three properties which they rent out,
0:09:21 > 0:09:26'but will they reap the rewards from this, their first ever auction purchase?'
0:09:26 > 0:09:30# You'll forget the sun in his jealous sky
0:09:30 > 0:09:34- # As we walk in fields of gold.- #
0:09:34 > 0:09:38'I met Steve at the property to hear about their plans.'
0:09:39 > 0:09:42- Steve, good to meet you. - How are you doing?- Congratulations.
0:09:42 > 0:09:45Tell me why you wanted to buy this place.
0:09:45 > 0:09:47I'd never been to an auction before.
0:09:47 > 0:09:53We went down, had a look and we were just buying it as an investment, really.
0:09:53 > 0:09:57A house to do up, just to see what we could do with it,
0:09:57 > 0:10:02- because we've bought three previous and it's something a friend told me to get into.- Oh, really?
0:10:02 > 0:10:05Try and invest for the future, basically.
0:10:05 > 0:10:06And it's gone well since that advice?
0:10:06 > 0:10:12It has. It's just a slow process of trying to build up a portfolio of properties
0:10:12 > 0:10:14and just have them for the future.
0:10:14 > 0:10:17- With the idea of keeping them and renting them out?- Yeah.
0:10:17 > 0:10:20Did you know this particular area at all?
0:10:20 > 0:10:22I'm from around here.
0:10:22 > 0:10:25I only live two miles away. I've lived here all my life.
0:10:25 > 0:10:28It's a case of buying properties in the area that you know.
0:10:28 > 0:10:30It's easier to keep a check on things.
0:10:30 > 0:10:33- How was the auction? - It was very intimidating.
0:10:33 > 0:10:37I was quite nervy when I went in because I'd never been to one before.
0:10:37 > 0:10:41We thought we were going to get the property for £43,000
0:10:41 > 0:10:44but a guy in front kept bidding against me,
0:10:44 > 0:10:48so in the end, we got it for £52,000, which is a little over guide price.
0:10:48 > 0:10:54'As Steve experienced at his first auction, the process can be quite nerve-racking.
0:10:54 > 0:10:58'You have to stay in control when you really want a property
0:10:58 > 0:11:02'because the adrenalin can push your maximum bid sky high in a heartbeat.
0:11:02 > 0:11:05'Now it's theirs, what next?'
0:11:05 > 0:11:06The plans are...
0:11:06 > 0:11:09the kitchen/bathroom will be turned into a kitchen.
0:11:09 > 0:11:13Knock the wall out that's adjoining that.
0:11:13 > 0:11:16And probably to put a bathroom in one of the bedrooms
0:11:16 > 0:11:21and make one bedroom smaller. The garden all needs redoing.
0:11:21 > 0:11:25New double-glazing and it looks like the walls need plastering.
0:11:25 > 0:11:29- So it looks like there's quite a bit to do.- What's the budget?
0:11:29 > 0:11:32The budget started at around £10,000
0:11:32 > 0:11:35but I'm seeing it's going to be close to £15,000.
0:11:35 > 0:11:38What's put it up by 50%?
0:11:38 > 0:11:41The main thing would be digging up the yard.
0:11:41 > 0:11:44You have to dig up the yard and the work for the bathroom -
0:11:44 > 0:11:48knocking down walls, reposition all the doors, et cetera.
0:11:48 > 0:11:53A lot of the properties around here have put in a dormer. Is that something you'd consider?
0:11:53 > 0:11:56Possibly, but not at this moment in time.
0:11:56 > 0:12:01If we were to sell the property, it's something we possibly could to try and add value
0:12:01 > 0:12:04or possibly put a conservatory on the back of the property.
0:12:04 > 0:12:05That's a sensible idea.
0:12:05 > 0:12:08Steve's goal is to turn it around and get it on
0:12:08 > 0:12:11the rental market in two months, ideally.
0:12:11 > 0:12:15So if he wants to hit that deadline, there's little point in getting carried away.
0:12:15 > 0:12:18Steve and one of his friends will do much of the work themselves
0:12:18 > 0:12:20and hire in trades when required.
0:12:20 > 0:12:23What's the long term plan here?
0:12:23 > 0:12:26To sit on it and hopefully buy some more.
0:12:26 > 0:12:29Keep it for 10, 20 years, for the future for my little one.
0:12:29 > 0:12:31Is it a boy or a girl?
0:12:31 > 0:12:33It's a boy. He's 21 months and he's a little devil.
0:12:33 > 0:12:37- So you're building up an inheritance for him?- It's the way forward
0:12:37 > 0:12:40because there's no point in money in the bank. You may as well invest it.
0:12:40 > 0:12:45- Property seems the way forward. - Listen, congratulations. Good luck with it.
0:12:45 > 0:12:48- Thank you very much.- I look forward to seeing how you get on.
0:12:48 > 0:12:52Well, it's great that Steve's building up a future for his son
0:12:52 > 0:12:55from a bit of Consett's industrial past.
0:12:55 > 0:12:57I think this will prove to be a great investment.
0:12:57 > 0:13:00How will he get on moving that bathroom
0:13:00 > 0:13:03and will his budget hold out?
0:13:03 > 0:13:05You can find out later in the show.
0:13:07 > 0:13:15# I passed by the old cathedral
0:13:15 > 0:13:22# As the organ played. #
0:13:24 > 0:13:26Today, I've travelled to the garden of England.
0:13:26 > 0:13:29I'm in the cathedral city of Canterbury, Kent.
0:13:29 > 0:13:33Historical buildings galore, pretty winding medieval lanes
0:13:33 > 0:13:36and loads of shopping opportunities.
0:13:36 > 0:13:38Hey, what's not to like?
0:13:38 > 0:13:41Plus the high-speed rail link whisks you into the capital
0:13:41 > 0:13:43in just over an hour.
0:13:44 > 0:13:47Let's hope the property I'm here to see
0:13:47 > 0:13:51is just as inspiring as its surroundings.
0:13:51 > 0:13:55A two-minute walk from the beautiful cathedral of Canterbury
0:13:55 > 0:13:57and I'm here to see today's auction lot.
0:13:57 > 0:14:01It had a guide price of £150,000 to £160,000.
0:14:01 > 0:14:05I think that's quite modest when you discover, for that price,
0:14:05 > 0:14:07you can get all of this.
0:14:07 > 0:14:11A former hairdresser's and offices upstairs on the first floor.
0:14:11 > 0:14:17Interestingly, the auction catalogue hints at its potential. Excited?
0:14:17 > 0:14:21Well, I am. So, a substantial and attractive property for the money.
0:14:21 > 0:14:24The downside is that it doesn't come with any parking space
0:14:24 > 0:14:29but the upsides are exposed brickwork, sash windows
0:14:29 > 0:14:31and your very own period lamp.
0:14:31 > 0:14:34It's certainly a cut above many hairdressers.
0:14:34 > 0:14:38# Get your hair cut, get your hair cut
0:14:38 > 0:14:42# To be absolutely blunt
0:14:42 > 0:14:45# With your hair cut like a coconut
0:14:45 > 0:14:49# You look as if your head's on back to front. #
0:14:49 > 0:14:52Wow! What a lovely sunny shop front.
0:14:52 > 0:14:54You can obviously see what it used to be,
0:14:54 > 0:14:57because there's mirrors just everywhere,
0:14:57 > 0:15:02but it's really bright in here in a fantastic corner of Canterbury.
0:15:02 > 0:15:05You really are just off the main high street here.
0:15:05 > 0:15:07In really good condition,
0:15:07 > 0:15:09you've got these gorgeous, beautiful sash windows.
0:15:09 > 0:15:12They look fab but they are single-glazed
0:15:12 > 0:15:15and I know for a fact you can really hear the traffic outside.
0:15:15 > 0:15:18You've got another part of the shop area to the back.
0:15:18 > 0:15:22Again, in quite good nick. It looks like it's recently been painted.
0:15:22 > 0:15:24So far, so good.
0:15:25 > 0:15:28# Mirror, mirror on the wall
0:15:28 > 0:15:32# Listen to me, hear my call. #
0:15:32 > 0:15:35There are three good-sized rooms down here,
0:15:35 > 0:15:38a small kitchen and stairs up to the first floor,
0:15:38 > 0:15:41where there are another three rooms.
0:15:41 > 0:15:44This may look like a bedroom but was used as an office.
0:15:44 > 0:15:47This place would be ideal for someone wanting to move
0:15:47 > 0:15:51their business in and start trading right away.
0:15:51 > 0:15:56However, you could also think about making the upstairs into a one-bed flat
0:15:56 > 0:15:59or double up and convert the whole building into two flats
0:15:59 > 0:16:03or one residential property, but for that, you'd need to get
0:16:03 > 0:16:07change of use from commercial to residential and make sure you have
0:16:07 > 0:16:11planning permission before knocking any walls down.
0:16:11 > 0:16:14# You're looking good
0:16:14 > 0:16:18# You're looking good to me. #
0:16:18 > 0:16:20With its dizzying number of options
0:16:20 > 0:16:26and a guide price of 150,000 to 160,000, we wasted no time in inviting
0:16:26 > 0:16:30a local estate agent around to hear his opinion.
0:16:30 > 0:16:31In terms of location,
0:16:31 > 0:16:34we're in the heart of the cathedral city of Canterbury,
0:16:34 > 0:16:37surrounded by some fantastic period buildings.
0:16:37 > 0:16:39We're a three-minute walk from the high street
0:16:39 > 0:16:41with all the shops and pubs Canterbury has to offer.
0:16:41 > 0:16:43I think, given where it is,
0:16:43 > 0:16:46an established residential location in the middle of the town,
0:16:46 > 0:16:48I think you're really going to try and look for
0:16:48 > 0:16:51a couple of big one-bedroom flats or some form of student let.
0:16:51 > 0:16:53Great minds think alike,
0:16:53 > 0:16:57but there is one other way of rejigging the layout
0:16:57 > 0:17:01that could accommodate both the retail and residential properties.
0:17:01 > 0:17:04One of the options is to keep the commercial space downstairs,
0:17:04 > 0:17:08perhaps just hive off the front bit for commercial, and then use
0:17:08 > 0:17:11the upper part and the rear of the ground floor
0:17:11 > 0:17:13for residential accommodation.
0:17:13 > 0:17:16You could easily have a living room and kitchen downstairs,
0:17:16 > 0:17:20two, maybe three bedrooms and a bathroom upstairs.
0:17:20 > 0:17:23That would make quite a good student let in this location.
0:17:23 > 0:17:26How much could that achieve in rental?
0:17:26 > 0:17:28As a student let in this accommodation,
0:17:28 > 0:17:33you're comfortably going to get £300 per calendar month for each lettable room.
0:17:33 > 0:17:37But if the purchaser decided to convert both floors
0:17:37 > 0:17:41into one-bedroom flats, how much could they generate?
0:17:41 > 0:17:43A one-bedroom flat in this location,
0:17:43 > 0:17:47you're comfortably looking at £700 a calendar month.
0:17:47 > 0:17:50And if put on the market for resale?
0:17:50 > 0:17:55A couple of one-bedroom flats here, and they'd be big one-bedroom flats,
0:17:55 > 0:17:56I think they'd get £160,000 each.
0:17:59 > 0:18:02It is just fantastic to have options, isn't it?
0:18:02 > 0:18:06With this lot, well, you've got a multitude, choices galore.
0:18:06 > 0:18:10I think I'd be tempted to turn this from commercial into residential
0:18:10 > 0:18:13and really maximise my investment.
0:18:13 > 0:18:16Let's see who wanted this when it went under the hammer.
0:18:19 > 0:18:20Lot 41.
0:18:20 > 0:18:23Start me where you will. Can I see £150,000 for it?
0:18:23 > 0:18:25150, doesn't seem a lot.
0:18:25 > 0:18:28You must be able to get 15 grand a year for that, I'd have thought.
0:18:28 > 0:18:31150 can I say? Where else do you get 10% return?
0:18:31 > 0:18:35130, then. 130. I'm on the way. 130 I've got
0:18:35 > 0:18:37and I should think so. And five, now, may I say?
0:18:37 > 0:18:40135 bid I've got. 140 in front of you. 140 I'm bid.
0:18:40 > 0:18:44145 in a fresh place. 145. 150 now.
0:18:44 > 0:18:46150. There's four of you after it. 150.
0:18:46 > 0:18:48155. 152?
0:18:48 > 0:18:50152.
0:18:50 > 0:18:51155?
0:18:51 > 0:18:55At 152,000 I've got. Five, I'm looking for.
0:18:55 > 0:18:58I got 155, there. 157, do I see?
0:18:58 > 0:19:02157? For the first time, then, at £155,000,
0:19:02 > 0:19:03the bidder at the back.
0:19:03 > 0:19:06155 for the second time.
0:19:06 > 0:19:11Third and final time, everybody's out of it, all done, 155, sir, it's your bid.
0:19:11 > 0:19:16Lurking in the background but successful with his 155,000 bid
0:19:16 > 0:19:18was Colin.
0:19:18 > 0:19:22He's a scaffolder by trade, also owns a sandwich shop in nearby Faversham,
0:19:22 > 0:19:26and has a small portfolio of buy-to-let properties.
0:19:26 > 0:19:28He wants to make the upstairs here residential,
0:19:28 > 0:19:32keeping the commercial usage downstairs.
0:19:32 > 0:19:35I caught up with him three and a half months after the auction
0:19:35 > 0:19:38when he'd managed to get those change-of-use plans in place.
0:19:39 > 0:19:42Colin, I always love coming to Canterbury.
0:19:42 > 0:19:45Why do you like it so much? Enough to want to buy somewhere here?
0:19:45 > 0:19:49When I first saw the property, with having a sandwich shop in Faversham,
0:19:49 > 0:19:51I thought about opening a sandwich shop here,
0:19:51 > 0:19:53with all the offices around the area,
0:19:53 > 0:19:56but with making some investigation,
0:19:56 > 0:19:59I found out, really, there's quite a bit of competition here.
0:19:59 > 0:20:03So, basically, now we've gone for just to rent it out as a property.
0:20:03 > 0:20:07When you bought this property on auction day, it was completely commercial.
0:20:07 > 0:20:09You've now been able to get the planning
0:20:09 > 0:20:11to turn it into residential upstairs.
0:20:11 > 0:20:14How long did that take you and how hard was that?
0:20:14 > 0:20:17It was quite easy, actually. We had no problems at all.
0:20:17 > 0:20:19We just put in a standard application
0:20:19 > 0:20:23to apply for residential use and I think the biggest problem we had
0:20:23 > 0:20:28was we didn't show a wheelie bin area for the commercial shop.
0:20:28 > 0:20:31- And that was it?- That was it, that was the only amendment we had to make.
0:20:31 > 0:20:35It's great that the process went so smoothly.
0:20:35 > 0:20:38We know all too well at Homes Under The Hammer
0:20:38 > 0:20:41that planning can take the most unexpected twists and turns.
0:20:41 > 0:20:44What has Colin got in mind for the commercial unit?
0:20:44 > 0:20:46We don't know exactly yet.
0:20:46 > 0:20:49Obviously, we've got to complete the property first.
0:20:49 > 0:20:50I've had a couple of enquiries,
0:20:50 > 0:20:53one from someone who wanted to open an art gallery,
0:20:53 > 0:20:59and one from a hairdresser's anyway, but at the moment, I've no fixed plans.
0:21:00 > 0:21:04Well, I did say this property was all about the options.
0:21:04 > 0:21:10With interest already, Colin should have no problem renting out the commercial space here.
0:21:10 > 0:21:13His experience as a scaffolder and property developer
0:21:13 > 0:21:17will stand him in good stead, and with his sandwich shop also on the go,
0:21:17 > 0:21:20he's certainly got a lot on his plate.
0:21:22 > 0:21:26How many corned beef sandwiches do you make a day in your shop?
0:21:26 > 0:21:28No corned beef, just gammon ham!
0:21:28 > 0:21:30Do you actually get involved in that as well?
0:21:30 > 0:21:32Thursdays is my day working.
0:21:32 > 0:21:35Do you actually get stuck in with the sandwiches?
0:21:35 > 0:21:38I thoroughly enjoy it. It'll make you laugh, I make the cakes.
0:21:38 > 0:21:39- Do you?- I actually do.
0:21:39 > 0:21:41So did it kind of excite you
0:21:41 > 0:21:45to think you could possibly potentially have brought a bit of that business to Canterbury?
0:21:45 > 0:21:48That was the initial thought to actually come here,
0:21:48 > 0:21:51but obviously, as I said, we're not going to do that now.
0:21:51 > 0:21:54I think it's got a really nice ring to it, Colin the Baker.
0:21:54 > 0:21:57- It could be a little bakery shop for you!- I don't think so.
0:21:57 > 0:22:00- That's a no, then! - That's a definite no!
0:22:00 > 0:22:04# If I knew you were coming, I'd have baked a cake
0:22:04 > 0:22:06# Baked a cake Baked a big fat cake
0:22:06 > 0:22:09# If I knew you was coming I'd have baked a cake
0:22:09 > 0:22:13# How'd you do? How'd you do? How'd you do? #
0:22:13 > 0:22:16So Colin won't be persuaded to don his baker's hat.
0:22:16 > 0:22:19I'm also surprised that he wasn't persuaded
0:22:19 > 0:22:23to go for the more lucrative residential option here.
0:22:23 > 0:22:25The first thing I thought
0:22:25 > 0:22:27when I walked along the streets of Canterbury,
0:22:27 > 0:22:30which I do happen to know quite well, this area,
0:22:30 > 0:22:34I think this would do extremely well, all of it, as a residential property.
0:22:34 > 0:22:37What about two flats? Have you thought about that?
0:22:37 > 0:22:40That was one of the problems. What do we do with it?
0:22:40 > 0:22:42Because there are many options with it.
0:22:42 > 0:22:44We could have it as commercial,
0:22:44 > 0:22:46we could have a flat upstairs and commercial downstairs,
0:22:46 > 0:22:48we could have it as two flats,
0:22:48 > 0:22:52we could go for an actual... entirely just a house on its own.
0:22:52 > 0:22:55That was a little bit of a sort of, what options do we take,
0:22:55 > 0:22:59so we're sticking by keeping the commercial at the moment and residential,
0:22:59 > 0:23:01and we'll see how it goes in the future.
0:23:01 > 0:23:04If the demand dies off a little bit,
0:23:04 > 0:23:06obviously then we can decide what would be best to do
0:23:06 > 0:23:08with the property at that time.
0:23:08 > 0:23:11So you don't want to set up a business yourself here.
0:23:11 > 0:23:13Is this for you to rent out to a business?
0:23:13 > 0:23:17At the moment, yes, but obviously, with owning the property,
0:23:17 > 0:23:20if me or my family want to set up a business here,
0:23:20 > 0:23:22we have the option to do that, so we have another option.
0:23:24 > 0:23:26I can see logic behind Colin's plan,
0:23:26 > 0:23:32but close as it is to the high street, this is a smidgen off the beaten track.
0:23:32 > 0:23:35Many businesses might be put off by the potential lack of passing trade.
0:23:35 > 0:23:41Colin should also bear in mind how long a business would be willing to rent the premises for,
0:23:41 > 0:23:45particularly in the current choppy financial market.
0:23:45 > 0:23:47And speaking of money...
0:23:47 > 0:23:50So with what you're going to do at the moment,
0:23:50 > 0:23:52as it currently stands, what's your budget?
0:23:52 > 0:23:57- Erm, I'd say 15 to a maximum of 20. - OK, is that likely to change?
0:23:57 > 0:24:00No, I think we should be on target for that.
0:24:00 > 0:24:04- And your timescale for the work? - Hopefully a maximum of six months.
0:24:04 > 0:24:07- To do everything?- That's correct. - Good luck with this. Thank you.
0:24:07 > 0:24:08Thank you.
0:24:08 > 0:24:11# How'd you do? How'd you do? How'd you do? #
0:24:13 > 0:24:15Colin is certainly keeping his options open.
0:24:15 > 0:24:18I like a man who dabbles in property, scaffolding,
0:24:18 > 0:24:21and making fairy cakes!
0:24:21 > 0:24:26I'm just not convinced that leaving it part commercial will be the most lucrative option.
0:24:26 > 0:24:30I'm really intrigued to find out what business will work in there.
0:24:30 > 0:24:33Join me later in the programme and you can find out.
0:24:35 > 0:24:40Coming up, I find a potential beast of a property in Staffordshire.
0:24:40 > 0:24:44Do something there and create yourself a really monstrous kitchen.
0:24:44 > 0:24:49In Canterbury, Colin has already decided what to do after this development.
0:24:49 > 0:24:54Get myself a little toy of a boat or something and play more golf, hopefully.
0:24:55 > 0:25:00But first, in County Durham, it seems Steve's as enthusiastic as ever.
0:25:00 > 0:25:04I think it just drives you on to do another one, you get the bug.
0:25:13 > 0:25:17Time now to head back to the beautiful area of Consett in County Durham,
0:25:17 > 0:25:21where earlier we met Steve, who lives locally with his partner, Gemma.
0:25:21 > 0:25:26They've been running a rural pub here for the last three years.
0:25:26 > 0:25:31Steve had bought this three-bed terraced bungalow at auction for £52,000.
0:25:31 > 0:25:33This was his fourth property,
0:25:33 > 0:25:38as he thinks it's the best way to save money for the future and his family.
0:25:39 > 0:25:42The bungalow was tired and dated,
0:25:42 > 0:25:45with lots of concrete floors and skirting.
0:25:45 > 0:25:47And the back garden was a bit of a jungle,
0:25:47 > 0:25:51but the biggest question of all was what Steve was planning to do.
0:25:51 > 0:25:56Plans are the kitchen/bathroom will be turned into a kitchen,
0:25:56 > 0:26:00knock the wall out that's adjoining that, and probably to put a...
0:26:00 > 0:26:04a bathroom in one of the bedrooms and make the one in the bedroom smaller.
0:26:04 > 0:26:08The garden all needs re-doing, new double glazing,
0:26:08 > 0:26:13and it looks like all the walls will need plastering, so there's quite a bit to do, really.
0:26:13 > 0:26:18Steve set a budget of between £10,000 and £15,000 and a timescale of two months,
0:26:18 > 0:26:22as he intended to get it on the rental market as soon as possible.
0:26:22 > 0:26:25Three months later, have things gone to plan?
0:26:31 > 0:26:36Well it's certainly looking a whole lot better, both outside and in.
0:26:46 > 0:26:50Upstairs, the three bedrooms are almost unrecognisable.
0:26:52 > 0:26:55This is what I call a transformation!
0:26:55 > 0:26:58Steve's stripped it right back and started afresh
0:26:58 > 0:27:04with neutral carpets, newly plastered and decorated walls, heating, windows and doors,
0:27:04 > 0:27:08but what about that tired old kitchen and bathroom?
0:27:16 > 0:27:20This was where the bathroom was, where I'm standing, this is where it ended.
0:27:20 > 0:27:24We've moved the bathroom into the other part of the bedroom
0:27:24 > 0:27:28and taken some space away there, and made a much bigger kitchen.
0:27:28 > 0:27:31Put a better kitchen in because we're going to sell,
0:27:31 > 0:27:34and as you can see, I'm very pleased with it.
0:27:34 > 0:27:39It seems the plans to let this out have changed as much as the kitchen.
0:27:39 > 0:27:43Steve and Gemma have decided that they would prefer to release the equity
0:27:43 > 0:27:46as they're buying another two investment properties.
0:27:46 > 0:27:50So the renovation was upgraded for the resale market.
0:27:50 > 0:27:55In order to improve the bathroom, they needed to adjust one of the bedrooms slightly.
0:27:55 > 0:28:01So basically what we've done, we've shortened this bedroom here,
0:28:01 > 0:28:03made it into a single, probably queen-sized bedroom.
0:28:03 > 0:28:09We had to move the electrics, which were above, they were in the bathroom.
0:28:09 > 0:28:13That was quite a big job but the whole house has been rewired anyway.
0:28:13 > 0:28:16We've turned this into a wet room, as you can see.
0:28:18 > 0:28:20Rather than just tile it half,
0:28:20 > 0:28:22we've tiled it full-tile floor-to-ceiling
0:28:22 > 0:28:26because we're now going to sell the property rather than rent it.
0:28:26 > 0:28:30Initially, here was a pantry, and the door was here,
0:28:30 > 0:28:34and we've had to move it to make a corridor to make a bigger bathroom.
0:28:34 > 0:28:38Steve has certainly been busy, and the reconfiguration
0:28:38 > 0:28:43works much better, but there's no doubt that this has turned out to be a major project.
0:28:43 > 0:28:47Basically, we've had to gut the whole house,
0:28:47 > 0:28:49so we had to do all the ceilings.
0:28:49 > 0:28:54All the walls have been re-plastered, the boiler was no good
0:28:54 > 0:28:56so a new central heating system.
0:28:56 > 0:28:59The other thing, the garden was quite a mess,
0:28:59 > 0:29:03so we had to then completely rip all the trees out,
0:29:03 > 0:29:08take all the lining up and re-turf that, put some decking down.
0:29:08 > 0:29:10That's a serious amount of work,
0:29:10 > 0:29:14but he's had help from some builders and his brother-in-law.
0:29:14 > 0:29:17But as Steve was still managing his pub at the same time,
0:29:17 > 0:29:20he admits he didn't do as much as everyone else.
0:29:20 > 0:29:23I pitched in where I could, to be honest,
0:29:23 > 0:29:25but it's a first-time project for one of this size,
0:29:25 > 0:29:30so the credit really goes to the two builders that sorted out most of the work.
0:29:31 > 0:29:34So, how did the budget fare?
0:29:34 > 0:29:38The budget was between £10,000 and £15,000. Erm...
0:29:38 > 0:29:42initially, we thought that would be a conservative budget,
0:29:42 > 0:29:45but the budget went to about 23,500.
0:29:45 > 0:29:49Quite a substantial budget overspend, then,
0:29:49 > 0:29:52and the turnaround was one month longer than planned, too.
0:29:52 > 0:29:56But the bar was raised when the house was fitted out for resale
0:29:56 > 0:30:00instead of rental, so Steve must be happy.
0:30:00 > 0:30:03It is a nice house and it's turned out really well,
0:30:03 > 0:30:06and I think it just drives you on to do another one.
0:30:06 > 0:30:09You get the bug, sort of thing.
0:30:09 > 0:30:10Let's tot up some figures, then.
0:30:10 > 0:30:13The bungalow's purchase price of 52,000,
0:30:13 > 0:30:19added to Steve's £23,500 spend makes a total outlay of 75,500.
0:30:23 > 0:30:28Let's hear from two local estate agents what it could be worth now.
0:30:30 > 0:30:32The property has a great wow factor.
0:30:32 > 0:30:35The owner has put a very high standard of finish
0:30:35 > 0:30:38for a refurbished property, thus will attract higher rent,
0:30:38 > 0:30:40a better quality of tenant,
0:30:40 > 0:30:43and also achieve a higher selling price on the market.
0:30:43 > 0:30:45The property is excellent.
0:30:45 > 0:30:47It's been really refurbished to a very high standard.
0:30:47 > 0:30:51I think the new owners have done an excellent job on the property.
0:30:51 > 0:30:52It's spacious,
0:30:52 > 0:30:55the new kitchen is superb, as is the new bathroom.
0:30:55 > 0:30:59Everything's really clean and it's a really nice home.
0:30:59 > 0:31:03Remembering Steve's total outlay here of 75,500,
0:31:03 > 0:31:06what's the bungalow's potential resale value now?
0:31:06 > 0:31:11I'd value the property between £80,000 and £90,000.
0:31:11 > 0:31:14I'd expect to sell this property in the region of £95,000,
0:31:14 > 0:31:16if it were put back onto the market for resale.
0:31:16 > 0:31:19That seems about right. That's what I valued it at.
0:31:19 > 0:31:25I'd say probably top end, 95 is what we hoped to probably get. Close to 95, anyway.
0:31:25 > 0:31:32That's a potential profit of between £4,500 and £19,500, minus the usual selling expenses.
0:31:32 > 0:31:35Whilst I hope he can achieve the higher figure,
0:31:35 > 0:31:38is rental still a viable option?
0:31:38 > 0:31:44The rental income for this property would start between £450 and £495 per calendar month.
0:31:44 > 0:31:45For a rental valuation,
0:31:45 > 0:31:50I'd expect to be achieving somewhere in the region of £475 per calendar month.
0:31:50 > 0:31:51That's probably what I'd expect.
0:31:51 > 0:31:55I mean, we were going to rent it but now we're just going to sell it.
0:31:56 > 0:32:02So he's not even tempted by those pretty healthy yields of between seven and eight per cent.
0:32:02 > 0:32:04This is going back on the resale market,
0:32:04 > 0:32:09but Steve and his team have done a great job here, so he must be pleased.
0:32:09 > 0:32:14I think it's really, really nice. It's that nice, my mum wants to buy it!
0:32:18 > 0:32:22I'm in Stafford, south of Stoke-on-Trent,
0:32:22 > 0:32:25north of Birmingham, and about 30 minutes from each.
0:32:25 > 0:32:30Stafford goes way back and has always been an important centre for this area.
0:32:30 > 0:32:33It's said James I even called it Little London.
0:32:33 > 0:32:38Certainly, the town centre still hints of its rich heritage,
0:32:38 > 0:32:41with the largest timber-frame townhouse in England.
0:32:41 > 0:32:45So, will it be a timber-framed house or just a terrible one for me today?
0:32:45 > 0:32:49First impressions, they're so important when it comes to houses.
0:32:49 > 0:32:51It's said that people make the decision to buy or not
0:32:51 > 0:32:54within the first 30 seconds of walking through the front door.
0:32:54 > 0:32:57But actually, it begins before that. It's called curb appeal.
0:32:57 > 0:33:00If a property works when you drive up, again,
0:33:00 > 0:33:04you're more likely to have success in terms of buying or selling it.
0:33:04 > 0:33:07You can't complain about this estate and this is the property I'm here to see.
0:33:07 > 0:33:10Nice lawns, nicely tended plants, it's a good start.
0:33:10 > 0:33:15£75,000 was the guide price. Two-bed semi, let's take a look.
0:33:16 > 0:33:18Yes, all looks fine so far.
0:33:21 > 0:33:23OK, so the windows and doors are a bit dated
0:33:23 > 0:33:26and may need replacing, but with that decent-sized front lawn
0:33:26 > 0:33:30and the fencing in good condition, along with the park just opposite,
0:33:30 > 0:33:35this house and surroundings have a lovely well-kept feel about them.
0:33:35 > 0:33:39So, it's an ex-local authority house, which I think is a really good thing
0:33:39 > 0:33:43because they're normally extremely solidly built and with lots of storage.
0:33:43 > 0:33:47So, is this one an exception? Let's find out. What have we got?
0:33:47 > 0:33:50From living room, lots of light coming through the windows.
0:33:50 > 0:33:55Nice to have that opened up to some kind of patio door perhaps out onto the garden.
0:33:55 > 0:33:58Through to the kitchen, which unfortunately isn't massive,
0:33:58 > 0:34:01and the units are obviously very dated.
0:34:01 > 0:34:06But there's a solution, because you've got this very strange little room just off the kitchen there.
0:34:06 > 0:34:09I guess it was the dining room, but why have it separate?
0:34:09 > 0:34:13Knock this wall through, put some kind of joist across the top,
0:34:13 > 0:34:19an RSJ and bingo, you've got yourself a really nice kitchen/dining room area.
0:34:19 > 0:34:23And if that's not enough, there's more good news out here,
0:34:23 > 0:34:26because masses of outdoor space.
0:34:26 > 0:34:29You've got this fairly substantial covered walkway area
0:34:29 > 0:34:32going out to what I suppose is the utility room.
0:34:32 > 0:34:34But if you weren't happy with that space,
0:34:34 > 0:34:38do something there and create yourself a really monstrous kitchen!
0:34:38 > 0:34:39# Is it a monster?
0:34:39 > 0:34:41# Is it a monster? #
0:34:42 > 0:34:45This area would certainly benefit from a complete refit.
0:34:45 > 0:34:49Taking the hotchpotch of rooms and combining them to make a kitchen diner,
0:34:49 > 0:34:54ideally in a properly-built extension, surely would be the way to go.
0:34:57 > 0:35:01Upstairs, I don't think any such drastic changes are needed
0:35:01 > 0:35:06with the two bedrooms and bathroom, other than a little updating and modernising.
0:35:06 > 0:35:11With that large back garden, you could end up with a good-sized family home.
0:35:11 > 0:35:13So far, investing in this property
0:35:13 > 0:35:17looks to me like anything but pouring money down the drain.
0:35:18 > 0:35:21I always worried I'd end up in the gutter!
0:35:21 > 0:35:23But in this instance, it's for a good reason
0:35:23 > 0:35:28because this is actually a dropped curb right outside the property.
0:35:28 > 0:35:31So what, you might ask. I'll tell you what that is.
0:35:31 > 0:35:35That's a way to instantly add value and saleability to the house
0:35:35 > 0:35:37because what does it lead to?
0:35:37 > 0:35:40Off-road parking, and that is what everybody wants.
0:35:40 > 0:35:44If there wasn't a dropped curb, you'd have to apply to the council
0:35:44 > 0:35:47and you'd also have to obviously pay for it to be done.
0:35:47 > 0:35:50In this case, it's there, a bit of gravel on here, bingo.
0:35:54 > 0:35:57I rather like this patch of green at the front,
0:35:57 > 0:36:03but with such a good-sized garden at the back, I can't see you actually using it that much,
0:36:03 > 0:36:06and off-street parking would add saleability for sure.
0:36:06 > 0:36:10I think this is a really sound property with room for improvement.
0:36:10 > 0:36:13But at the same time, you could just upgrade
0:36:13 > 0:36:15and modernise what's already here.
0:36:15 > 0:36:17What does an estate agent think about its state
0:36:17 > 0:36:22and the best way forward for this place guided at 75,000?
0:36:24 > 0:36:26It's a solid house, good-sized rooms.
0:36:26 > 0:36:28There's a lot of potential here,
0:36:28 > 0:36:31especially the little extension on the side, offers great scope
0:36:31 > 0:36:35to either extend the kitchen or even add a small utility to it.
0:36:35 > 0:36:41So, what kind of returns might be achievable here once it was refurbished?
0:36:41 > 0:36:45The property in its current condition is probably worth in the region of about £85,000.
0:36:45 > 0:36:47Finished to a good standard,
0:36:47 > 0:36:50this property should market for about 120,000,
0:36:50 > 0:36:54and it would rent for about £525 per calendar month.
0:36:56 > 0:36:59So, this tidy house could also be a tidy investment.
0:37:02 > 0:37:05Well it's a good, solid, practical house, this one,
0:37:05 > 0:37:08that would make a lovely first-time buyer's house
0:37:08 > 0:37:11or possibly something you could rent out.
0:37:11 > 0:37:13Spend a bit of money on it sorting it out,
0:37:13 > 0:37:16and you'd recoup your investment, I'm pretty sure.
0:37:16 > 0:37:19Let's see who fancied the opportunity when it went under the hammer.
0:37:24 > 0:37:28Lot 10. To Stafford now, the county town of Stafford.
0:37:28 > 0:37:32A semi-detached house, requires modernising. Gas central heating.
0:37:32 > 0:37:3860 then, let's get it going. Can we say 60? It's got to be worth that, surely. 60 bid, thank you.
0:37:38 > 0:37:42At 60,000, took it there. Do you want to go 65, sir? £65,000. At 65.
0:37:42 > 0:37:4570, is it now? At 65. 70.
0:37:45 > 0:37:5075? £75,000, standing right. £75,000. 80, is it?
0:37:50 > 0:37:54At 75... One, you're saying. 76.
0:37:54 > 0:37:5877. 78. 79.
0:38:00 > 0:38:03At 79,000. Standing right at 79. At 79 then.
0:38:03 > 0:38:07Bids right, standing right, at 79,000. 80 anywhere else?
0:38:10 > 0:38:15If not, 79 for the first time. 79 for the second time.
0:38:15 > 0:38:18Third and final time at £79,000...
0:38:18 > 0:38:20Your lot, sir, well done.
0:38:20 > 0:38:26For 79,000, the successful bidder on the two-bed Staffordshire house was Peter.
0:38:26 > 0:38:28He's a retired college lecturer
0:38:28 > 0:38:31who now drives a minibus for a small firm.
0:38:31 > 0:38:35His wife Helen also drives a minibus for the college Peter used to work at.
0:38:35 > 0:38:39I met them to hear what drove them to buy this place.
0:38:39 > 0:38:41- Peter, Helen, lovely to meet you both.- Thank you.
0:38:41 > 0:38:43Tell me why you wanted to buy this place.
0:38:43 > 0:38:47Our daughter is looking for somewhere to live.
0:38:47 > 0:38:51She finishes university this week, actually,
0:38:51 > 0:38:55and her and her fiance will need somewhere to live.
0:38:55 > 0:38:58She's expecting a baby, so we thought we'll buy this for her
0:38:58 > 0:39:01- and it'll give them a start.- Wow! Well they're lucky, aren't they?
0:39:01 > 0:39:05We've got four daughters altogether and this is the third one we've done it for.
0:39:05 > 0:39:08It's normally just paying for the wedding,
0:39:08 > 0:39:11it's not normally buying them a house. You know that, don't you?
0:39:11 > 0:39:15Well, it is bought very much as a business, erm...
0:39:15 > 0:39:18thought, you know, with business in mind. They'll pay rent on it.
0:39:18 > 0:39:21- Why this house, then? - Well, it was quite simple.
0:39:21 > 0:39:25We wanted somewhere in Stafford and at auction, this was the only house.
0:39:25 > 0:39:28- # I am the one and only.- #
0:39:28 > 0:39:32Well, I guess that made it easier when deciding which house to go for!
0:39:32 > 0:39:35Luckily for all concerned, it fits the bill nicely.
0:39:35 > 0:39:39It's a good family starter home at a decent price and in Stafford.
0:39:39 > 0:39:43With three daughters housed and other previous developments,
0:39:43 > 0:39:48this certainly isn't their one and only property project.
0:39:48 > 0:39:51- I think we've had about 10 we worked out, didn't we?- Yes.
0:39:51 > 0:39:52Over the years, yes.
0:39:52 > 0:39:56- Great, and always spurred on by some family interest, or...?- No.
0:39:56 > 0:39:58We've got an unusual situation,
0:39:58 > 0:40:01as much as we live in tied accommodation, which goes with the job.
0:40:01 > 0:40:07I was a lecturer in agriculture, now retired as of last August,
0:40:07 > 0:40:10so we initially started buying houses so it's some way
0:40:10 > 0:40:13to try and build up a nest egg for ourselves over the years.
0:40:13 > 0:40:17Unfortunately, the majority of the nest egg has been spent on daughters, but...
0:40:19 > 0:40:20..hey-ho!
0:40:20 > 0:40:23But they are getting some rent from their daughters,
0:40:23 > 0:40:26and I guess they're pretty good tenants.
0:40:26 > 0:40:29Well, I hope they are anyway! So, it's not a total money drain.
0:40:32 > 0:40:34So, tell me what you're going to do to sort it out.
0:40:34 > 0:40:37Well, the first thing to be done is the windows.
0:40:37 > 0:40:39We'll replace all the windows,
0:40:39 > 0:40:42possibly put a porch on the front.
0:40:42 > 0:40:46We understand the guttering is leaking, so that's all got to be checked and replaced.
0:40:46 > 0:40:48The roofing has got to be checked.
0:40:48 > 0:40:53We want to create some form of off-road parking out there for them as well.
0:40:53 > 0:40:57Internally, sort of replacing doors,
0:40:57 > 0:40:59re-tiling and redecorating throughout.
0:40:59 > 0:41:01Check the electrics, check the gas.
0:41:01 > 0:41:04What about anything more elaborate, like an extension?
0:41:04 > 0:41:09It's a possibility, but I suspect the budget will restrict us.
0:41:09 > 0:41:14- So what's the budget?- We're looking at 10 grand, I think, at the moment.
0:41:14 > 0:41:18£10,000 will certainly do a decent refurbishment here,
0:41:18 > 0:41:21but I think the extension will have to wait,
0:41:21 > 0:41:25as they have some more pressing issues of their own.
0:41:26 > 0:41:28So what's next on the agenda?
0:41:28 > 0:41:32I think a property for ourselves, you know, somewhere to live.
0:41:32 > 0:41:36As I say, we're expecting to be out of our property in the next 12 months,
0:41:36 > 0:41:40so we want somewhere to be able to set up ourselves and go and live.
0:41:40 > 0:41:44Ideally I'd like a six-bedroom farmhouse with a granny annex,
0:41:44 > 0:41:4640 acres of ground overlooking the hillside,
0:41:46 > 0:41:49but I suspect I may be a bit over the top on that one!
0:41:49 > 0:41:52Well, congratulations, good luck with it.
0:41:52 > 0:41:54- We'll look forward to seeing how you get on.- Thank you.
0:41:54 > 0:41:58# I am the one and only
0:41:58 > 0:42:01- # Can't take that away from me.- #
0:42:01 > 0:42:06Well, it turns out having four daughters was a bit of an expensive thing for Helen and Peter.
0:42:06 > 0:42:09I bet they're glad they didn't have a bigger family!
0:42:09 > 0:42:12But it's just as well that the only house available in Stafford
0:42:12 > 0:42:14was such a good investment.
0:42:14 > 0:42:18How will they get on sorting it out? And will they end up with a house of their own?
0:42:18 > 0:42:20You can find out later in the show.
0:42:23 > 0:42:27Well, we wait patiently for our buyers to do work on their properties
0:42:27 > 0:42:30and sometimes, they make a wonderful job of it.
0:42:30 > 0:42:33And sometimes, they don't do anything at all!
0:42:33 > 0:42:37So what's happened with today's buyers? Let's find out.
0:42:37 > 0:42:41We're back in Canterbury in Kent, where scaffolder, sandwich shop man,
0:42:41 > 0:42:44and small-time property developer Colin
0:42:44 > 0:42:49bought this former hairdressers and office at auction for 155,000,
0:42:49 > 0:42:55but the plan wasn't to move one of his businesses into his latest acquisition.
0:42:55 > 0:42:57So you don't want to set up a business yourself here.
0:42:57 > 0:43:00Is this for you to rent out to a business?
0:43:00 > 0:43:01At the moment, yes,
0:43:01 > 0:43:06but obviously with owning the property, if me or my family want to set up a business here,
0:43:06 > 0:43:09we then have the option to do that, so again, we have another option.
0:43:09 > 0:43:14And options are something this property certainly wasn't short of.
0:43:14 > 0:43:16Fortunate to be able to have his cake and eat it, too,
0:43:16 > 0:43:20Colin wanted to convert the upstairs into a residential flat
0:43:20 > 0:43:24and maintain the commercial space downstairs.
0:43:24 > 0:43:29Seven months after I first met Colin, is the former hair salon looking trim,
0:43:29 > 0:43:32or is the renovation far from cut and dried?
0:43:40 > 0:43:44True to his word, Colin has split the usage into commercial
0:43:44 > 0:43:47and residential, although the plans have changed slightly.
0:43:47 > 0:43:53Downstairs, the front and middle rooms are now the commercial unit with kitchen and loo.
0:43:53 > 0:43:56But this area is slightly smaller than originally intended.
0:43:56 > 0:43:59That's because Colin decided to create a three-bed flat
0:43:59 > 0:44:04split over the rear of the ground and the first floor.
0:44:04 > 0:44:06That meant separating off the stairs,
0:44:06 > 0:44:09the kitchen and the former washroom, which is now the lounge,
0:44:09 > 0:44:12with new separate access to the flat.
0:44:14 > 0:44:17The rooms upstairs have been converted into bedrooms,
0:44:17 > 0:44:20and what was just a loo is now a shower room,
0:44:20 > 0:44:23so the property now houses a three-bedroom duplex maisonette.
0:44:23 > 0:44:29The downstairs rooms have been renovated to make them more in keeping with their new use.
0:44:29 > 0:44:31The changes we've made here,
0:44:31 > 0:44:33this used to be part of the commercial area.
0:44:33 > 0:44:37There was a line of sinks along here, and into the kitchen here
0:44:37 > 0:44:42we've obviously fitted a hob and everything and tiled it all and everything,
0:44:42 > 0:44:45and we've also added these units here, because it is a small kitchen,
0:44:45 > 0:44:49to give it a bit more room to actually store stuff in.
0:44:49 > 0:44:53At the moment, we have a little bit more to do but it's nearly there.
0:44:53 > 0:44:56All that's left to do to this part of the property
0:44:56 > 0:45:00is some additional decorating, and the flooring in the living room.
0:45:00 > 0:45:04But otherwise, all internal work is complete.
0:45:04 > 0:45:09The roof has been repaired, central heating installed throughout,
0:45:09 > 0:45:11and a new electrical system put in.
0:45:11 > 0:45:18Did Colin manage to do all this within his original budget of 15,000 to 20,000?
0:45:20 > 0:45:23I've spent about 18,000 at the moment.
0:45:23 > 0:45:27There was a little bit more cost than we anticipated on things
0:45:27 > 0:45:31but we should be getting in within about 20,000 to 21,000 when the final bills are in.
0:45:33 > 0:45:37So, only a little over budget, and his timescale has gone over somewhat, too,
0:45:37 > 0:45:40with bits and bobs still left to do.
0:45:40 > 0:45:43But he's a very busy man.
0:45:43 > 0:45:45I'm a little bit behind on the schedule.
0:45:45 > 0:45:47Basically, I had other commitments elsewhere,
0:45:47 > 0:45:52other properties that needed maintenance, people moving out.
0:45:52 > 0:45:56I have a student property that I had to make good,
0:45:56 > 0:45:58but time goes by so quickly!
0:46:01 > 0:46:02Yep, it sure does!
0:46:02 > 0:46:04Colin plans to rent the maisonette out,
0:46:04 > 0:46:08and has found someone to take on the commercial space downstairs, close to home.
0:46:09 > 0:46:14Since buying the property, my son has taken an interest,
0:46:14 > 0:46:19and he's actually going to turn this into a takeaway food shop,
0:46:19 > 0:46:22sandwiches, baguettes, and so on, and I've been fortunate enough
0:46:22 > 0:46:27to allow him to have it rent free for a year, so I think I'm quite lucky.
0:46:27 > 0:46:31Glad to hear you've retained your sense of humour, Colin,
0:46:31 > 0:46:34and that's a lovely gesture to your son.
0:46:34 > 0:46:35But do two local estate agents
0:46:35 > 0:46:37think that what he's done here
0:46:37 > 0:46:39is just as lovely?
0:46:39 > 0:46:43A lot of conversion works have been done, a bit of subdivision.
0:46:43 > 0:46:45Complete redecoration throughout.
0:46:45 > 0:46:47I think it works really well.
0:46:47 > 0:46:49This is a good property and a great location.
0:46:49 > 0:46:51It's close to the city centre.
0:46:51 > 0:46:55If I owned this, I might have done it differently and made it two residential units
0:46:55 > 0:46:58or one large residential unit, but it's a good idea
0:46:58 > 0:47:02to have a spread of income from both commercial and residential.
0:47:03 > 0:47:07Colin purchased the property for 155,000
0:47:07 > 0:47:10and estimates his spend will be around 21,000.
0:47:10 > 0:47:15Altogether, that makes £176,000, and with his plans to rent it out,
0:47:15 > 0:47:21what would two estate agents recommend charging for that?
0:47:21 > 0:47:23In terms of renting a flat out,
0:47:23 > 0:47:26we're looking at around £900 per calendar month.
0:47:26 > 0:47:31The rental value of the flat upstairs is probably £650 per calendar month.
0:47:31 > 0:47:34If you let to students, the rent would be higher.
0:47:34 > 0:47:38They pay £320 roughly per person per month,
0:47:38 > 0:47:43so you'd be looking at £960 per month but the use is more intensive.
0:47:43 > 0:47:45The student figure, I was aware of that
0:47:45 > 0:47:47because I do have some students at the moment,
0:47:47 > 0:47:52so that was the ballpark that I know is feasible, sort of thing.
0:47:53 > 0:47:57What about the commercial section?
0:47:57 > 0:48:00I'd put the rental in at around about £400 per calendar month.
0:48:00 > 0:48:04The shop would let for about £600 per calendar month,
0:48:04 > 0:48:07so it has an annual income of around £7,200 per annum.
0:48:07 > 0:48:10Funnily enough, I was thinking of somewhere in between there,
0:48:10 > 0:48:12but I can't complain.
0:48:12 > 0:48:15It's quite a nice figure. I look forward to my son
0:48:15 > 0:48:17being a success and he'll move on
0:48:17 > 0:48:22and I can get some money for the property, so I hope time flies.
0:48:23 > 0:48:26No wonder Colin's keen for his rent-free son to move on,
0:48:26 > 0:48:31because those estimates mean that from the lower rental valuations
0:48:31 > 0:48:37up to the best case scenario, he could earn a yield of between seven and just over 10.5%!
0:48:38 > 0:48:41If he did decide to sell both units as a whole,
0:48:41 > 0:48:46the estate agents gave valuations of between 220,000 and 240,000,
0:48:46 > 0:48:53so his pre-tax profit would be between 44,000 and 64,000, minus expenses.
0:48:53 > 0:48:56With those impressive figures, and the work nearly done,
0:48:56 > 0:48:59what's next on Colin's agenda?
0:48:59 > 0:49:02I've told my family I don't intend to get any more property
0:49:02 > 0:49:06and they've all turned round and said, "Yeah, wait until you see a bargain", basically!
0:49:06 > 0:49:10But now I'm intending to hopefully - I'm not getting any younger -
0:49:10 > 0:49:13take life a little bit more easy.
0:49:13 > 0:49:18Get myself a little toy of a boat or something and play more golf, hopefully. We shall see.
0:49:18 > 0:49:20I've heard that before!
0:49:23 > 0:49:29In the ancient midland town of Stafford, I came across a two-bed semi that was generally pretty good.
0:49:29 > 0:49:32# I am the one and only. #
0:49:32 > 0:49:34It was in a pleasant area,
0:49:34 > 0:49:39had loads of space back and front, and just needed updating.
0:49:39 > 0:49:41For retired lecturer Peter and his wife Helen,
0:49:41 > 0:49:44it was exactly what they were looking for.
0:49:46 > 0:49:49Tell me why you wanted to buy this place.
0:49:49 > 0:49:51Our daughter is looking for somewhere to live.
0:49:51 > 0:49:54She finishes university this week, actually,
0:49:54 > 0:49:58and her and her fiance need somewhere to live.
0:49:58 > 0:50:02She's expecting a baby so we thought we'd buy this for them and give them a start.
0:50:02 > 0:50:06# Is it really true? Oh, lucky you. #
0:50:06 > 0:50:08As they have four daughters,
0:50:08 > 0:50:11this was the third time they'd done this.
0:50:11 > 0:50:14They paid £79,000 at auction to help Kerry and her partner
0:50:14 > 0:50:19start life as new parents, but then there was the small matter
0:50:19 > 0:50:22of completing the renovation before Kerry's baby was due.
0:50:22 > 0:50:26Armed with a £10,000-12,000 budget, they set about their task.
0:50:28 > 0:50:32So, has their lucky daughter got the house she wanted?
0:50:32 > 0:50:34Four months later, we're back.
0:50:34 > 0:50:39On the outside, they've made the most of that already lowered curb
0:50:39 > 0:50:42by creating some off-street parking.
0:50:42 > 0:50:45Along with new windows, doors, and a more suitable porch roof,
0:50:45 > 0:50:49they've created a tidy-looking property.
0:50:52 > 0:50:55And inside, their daughter Kerry has moved in,
0:50:55 > 0:51:00along with new arrival Archie, who's now two months old.
0:51:01 > 0:51:07Since we moved in, we've completely re-done the house, top to bottom.
0:51:07 > 0:51:09We've had windows taken out, doors put in.
0:51:12 > 0:51:14Now it's started to become a home,
0:51:14 > 0:51:19but at first, Kerry and fiance Jamie lived here whilst the work was going on.
0:51:19 > 0:51:23As the house was being done up, at points the kitchen was in the lounge,
0:51:23 > 0:51:25I didn't have a washing machine,
0:51:25 > 0:51:30didn't have a dishwasher, and it was just a little bit of a mess.
0:51:30 > 0:51:32Luckily that's all behind them
0:51:32 > 0:51:36because now she has a fully-functioning kitchen with all mod cons.
0:51:36 > 0:51:40But of course, the renovation was just one of many things
0:51:40 > 0:51:43that have been happening in the last four months.
0:51:43 > 0:51:46I've also had a baby in that time, graduated from university,
0:51:46 > 0:51:51erm, yeah, and obviously moved in with my partner for the first time in our relationship,
0:51:51 > 0:51:53and planning a wedding!
0:51:53 > 0:51:57So, yes, we've kind of got all life's big events going on.
0:51:57 > 0:52:00Crikey, that's a fair amount to take on,
0:52:00 > 0:52:02but at least one thing she can tick off
0:52:02 > 0:52:06is that the bulk of the refurbishment work on the house is now done...
0:52:10 > 0:52:14..with the upstairs bathroom being given a thorough makeover,
0:52:14 > 0:52:16along with the separate toilet.
0:52:19 > 0:52:22The two bedrooms are now vibrant and bright.
0:52:22 > 0:52:26Although this house was bought to help Kerry and her fiance
0:52:26 > 0:52:29get off to a good start in their first family home,
0:52:29 > 0:52:33they're going to pay rent to Peter and Helen, who still own the property.
0:52:33 > 0:52:37The grandparents were heavily involved in the refurbishment, too.
0:52:38 > 0:52:42I've done the majority of the work but Helen has come along
0:52:42 > 0:52:44and helped out where she can.
0:52:44 > 0:52:47Kerry and Jamie have done a lot of the decorating.
0:52:47 > 0:52:50Getting down on her hands and knees until late on in pregnancy,
0:52:50 > 0:52:53painting skirting boards and walls etc.
0:52:53 > 0:52:56Generally, this has been a real team effort
0:52:56 > 0:53:00but there was one area which needed more work than others.
0:53:00 > 0:53:03This is our main area, which we've been very pleased with.
0:53:03 > 0:53:07This was an outhouse and sort of like a coal shed,
0:53:07 > 0:53:11and we've had water put out here and drainage,
0:53:11 > 0:53:17and all the walls have been insulated, so we've got the utility room out here.
0:53:17 > 0:53:20We've got the freezer, washing machine, tumble dryer,
0:53:20 > 0:53:25it's all been tiled, decorated, and we managed to get a toilet out here as well.
0:53:25 > 0:53:30The biggest challenge is, we couldn't go on to the main sewerage, so we've had to put a macerator on there,
0:53:30 > 0:53:35which gives us... Our grandson was amused when he came in here and wanted to use the electric toilet.
0:53:35 > 0:53:37That's worked well.
0:53:37 > 0:53:41Although there's been a big improvement, there's still more to be done.
0:53:41 > 0:53:44Long-term, there are still plans for a new extension,
0:53:44 > 0:53:49and there's certainly plenty of room in the garden to accommodate it.
0:53:49 > 0:53:54But to have done it now would have certainly meant overspending on their budget.
0:53:54 > 0:53:58The budget was originally set at around 10,000-12,000,
0:53:58 > 0:54:02but since then, we've put the kitchen in, which was £1,000.
0:54:02 > 0:54:06We've also done the utility room,
0:54:06 > 0:54:10and put the extra toilet in. The extra toilet alone was getting on for £1,000.
0:54:10 > 0:54:12So the budget is probably...
0:54:12 > 0:54:15We haven't worked it out exactly but it's around 14,000.
0:54:15 > 0:54:21A £14,000 spend on top of the purchase price of 79,000
0:54:21 > 0:54:25makes the total outlay here £93,000 plus costs and fees.
0:54:25 > 0:54:28Although this was bought with their daughter in mind,
0:54:28 > 0:54:32it was still acquired as an investment, with Kerry paying them rent.
0:54:32 > 0:54:36So, does it stack up as one? What do two local estate agents think?
0:54:36 > 0:54:38The place is a lovely place.
0:54:38 > 0:54:40I think he's done a good job on the refurb.
0:54:40 > 0:54:44I particularly like the off-road parking addition
0:54:44 > 0:54:46that was originally the grassed area at the front.
0:54:46 > 0:54:50I also like the introduction of the utility area into the main house as well,
0:54:50 > 0:54:53and the WC has also added value to the property as well.
0:54:53 > 0:54:56It's nice to see the new kitchen in it.
0:54:56 > 0:54:59Adding the driveway is always a good bonus
0:54:59 > 0:55:02but it could do with a few extras adding, updating the fires,
0:55:02 > 0:55:06things like that, just to give it that bit more of a wow factor.
0:55:06 > 0:55:11First and foremost, this is a rental property with their daughter being the tenant,
0:55:11 > 0:55:14but have they invested their 93,000 wisely?
0:55:16 > 0:55:21The current value of the property, I'd expect to achieve in the region of £115,000.
0:55:21 > 0:55:24I'd put a valuation on the property of £110,000.
0:55:24 > 0:55:27- Wow.- I'm pleased with that. - Very pleased with that.
0:55:27 > 0:55:29I'm not surprised they're pleased.
0:55:29 > 0:55:33There's a potential pre-tax profit of £17,000-£22,000,
0:55:33 > 0:55:34which isn't too shabby.
0:55:34 > 0:55:38But how could it fare on the general rental market?
0:55:38 > 0:55:41Rental, it would fetch £525,000 per calendar month.
0:55:41 > 0:55:46Rental wise, I've put a valuation on the property of £500 per calendar month.
0:55:46 > 0:55:47That's good value.
0:55:47 > 0:55:51Kerry being our daughter, we're charging her less, but we're happy with that.
0:55:51 > 0:55:56Open market prices would bring an annual rental yield of between 6.5% and 7%.
0:55:56 > 0:56:01Even at the lower rate, this should still be a decent investment.
0:56:01 > 0:56:04Are they happy with their purchase?
0:56:04 > 0:56:07Yes, we are, we're very happy.
0:56:07 > 0:56:10It's been a big project but it's provided its purpose.
0:56:10 > 0:56:14It's provided a good home for Kerry and Jamie and will continue to do so.
0:56:14 > 0:56:19So, the parents are delighted, but how about daughter Kerry?
0:56:19 > 0:56:24Very, very grateful. I'm very, very lucky for what my parents have done.
0:56:24 > 0:56:29If they hadn't have been able to buy us the house and rent it out to us,
0:56:29 > 0:56:32I'm not sure that we'd actually be in our own place by now.
0:56:32 > 0:56:36We could still be living with our parents with a baby,
0:56:36 > 0:56:39so we're very, very grateful to them!
0:56:50 > 0:56:51Join us next time
0:56:51 > 0:56:55when we have more riveting stories from Britain's auction rooms.
0:56:55 > 0:56:58- You wouldn't want to miss it, so join us then.- Goodbye.- Goodbye.
0:57:06 > 0:57:09Subtitles by Red Bee Media Ltd