0:00:02 > 0:00:04Hello. Over the years, Lucy and I have witnessed
0:00:04 > 0:00:06the ebbing and flowing of the property market.
0:00:06 > 0:00:09Whether you want it as a home or an investment,
0:00:09 > 0:00:12you want to see its value rise, not fall.
0:00:12 > 0:00:16It's really important to buy at the right price and one way to do that
0:00:16 > 0:00:20is to visit the auctions and buy your home under the hammer.
0:00:45 > 0:00:49We're all aware of the ever-changing fortunes of the property market.
0:00:49 > 0:00:52But doing a deal at the auction is one of the simplest processes.
0:00:52 > 0:00:55Your hand goes up, the hammer comes down, you've bought the property.
0:00:55 > 0:00:59That's just what happened when today's properties were sold.
0:01:00 > 0:01:05I thought I'd seen it all till I visited this two bedroom terrace in Greater Manchester.
0:01:05 > 0:01:08What is this all about?
0:01:10 > 0:01:13Have I seen the best of this Essex semi-detached
0:01:13 > 0:01:16before I'm even through the door?
0:01:16 > 0:01:19First impressions - it looks better from the outside.
0:01:19 > 0:01:26And in Stoke, I've seen appealing wallpapers in my time, but this...
0:01:26 > 0:01:30What is that? Have you seen anything like that before? Very strange.
0:01:31 > 0:01:33All these properties have been sold at auction.
0:01:33 > 0:01:36We'll find out who bought them and what they paid for them
0:01:36 > 0:01:38when they went under the hammer.
0:01:38 > 0:01:40Sold 244.
0:01:44 > 0:01:49Today I'm in Ashton-under-Lyne, about six miles from the city centre of Manchester.
0:01:49 > 0:01:53The town is home to one of the largest outdoor markets in the UK.
0:01:53 > 0:01:56The house I'm off to see is less than five minutes from here
0:01:56 > 0:02:00and it's just round the corner from Tameside General Hospital,
0:02:00 > 0:02:04great news if you're looking to rent out a property in the area.
0:02:04 > 0:02:07Well, this is the main road into the town centre
0:02:07 > 0:02:11and also onwards into Manchester city centre itself.
0:02:11 > 0:02:14Great for transport links then, but boy, oh boy,
0:02:14 > 0:02:16even out of rush hour it's very busy.
0:02:16 > 0:02:20That's significant because this is the property that I'm here to see.
0:02:20 > 0:02:24It's a two bed end of terrace at a guide price of 55,000 quid.
0:02:26 > 0:02:30MUSIC: "Our House" by Madness
0:02:30 > 0:02:34So, good for getting around but bad for traffic rumbling past.
0:02:34 > 0:02:37So far this place doesn't exactly set my pulse racing
0:02:37 > 0:02:40but it doesn't look too bad from the outside.
0:02:42 > 0:02:46The first thing I'd do definitely is put a double-glazed door on there
0:02:46 > 0:02:48to get rid of the noise from the road.
0:02:48 > 0:02:52Through there into the corridor, a decent size and straight away,
0:02:52 > 0:02:56nice high ceilings and nice wide corridors so that bodes well.
0:02:56 > 0:02:59Front sitting room there. It feels damp.
0:02:59 > 0:03:01It looks a little bit damp but it's a nice size.
0:03:01 > 0:03:05Stairs up to your bedrooms and then through to your rear sitting room.
0:03:05 > 0:03:10Again, proportionately, really large. Look at this, fantastic.
0:03:10 > 0:03:12What you'd use this for, I'm not sure.
0:03:12 > 0:03:15I think what I would contemplate is actually knocking through
0:03:15 > 0:03:19to the kitchen or indeed making this the kitchen, perhaps, and this the utility.
0:03:19 > 0:03:21As you can see, the kitchen as it stands
0:03:21 > 0:03:24at the moment ain't too brilliant.
0:03:24 > 0:03:26All in all, great start.
0:03:26 > 0:03:31MUSIC: "You'll Always Find Me In The Kitchen At Parties" by Jona Lewie
0:03:34 > 0:03:38Whether you keep the kitchen here or put it in the larger adjoining room,
0:03:38 > 0:03:39one thing's for sure.
0:03:39 > 0:03:43The current kitchen just doesn't look in the party mood at all.
0:03:43 > 0:03:46It'll definitely need to be updated
0:03:46 > 0:03:47and that goes for the whole ground floor.
0:03:47 > 0:03:50In fact, no massive surprises so far then,
0:03:50 > 0:03:53but sit tight as I venture up a floor
0:03:53 > 0:03:55to the two bedrooms and bathroom.
0:03:56 > 0:03:59You know, you think you know a property or what to expect
0:03:59 > 0:04:06and then you come upstairs and what is this all about?
0:04:06 > 0:04:08It's kind of a stood partition wall
0:04:08 > 0:04:11that somebody's halfway through building in one of the bedrooms
0:04:11 > 0:04:15and then it continues to get really weird - watch out for the electric cables -
0:04:15 > 0:04:21you've got this entrance leading through to heaven only knows.
0:04:23 > 0:04:26I get it. This was actually a wardrobe,
0:04:26 > 0:04:29a built-in wardrobe, in this bedroom.
0:04:29 > 0:04:31It's been knocked through at the back there.
0:04:31 > 0:04:34Probably to create some kind of a corridor.
0:04:34 > 0:04:39The reason for that is we have one of those classic layout problems.
0:04:39 > 0:04:40This is the loo.
0:04:40 > 0:04:43The only loo and bathroom in the property and to access it,
0:04:43 > 0:04:45you have to come through this bedroom.
0:04:45 > 0:04:47Not ideal at all.
0:04:47 > 0:04:52Maybe that's what that little bit of stood partitioning is for or perhaps
0:04:52 > 0:04:55somebody had started thinking a bit more laterally about this property.
0:04:55 > 0:04:56It's pretty big
0:04:56 > 0:04:59so could you potentially convert this into two flats?
0:04:59 > 0:05:01One downstairs, one upstairs.
0:05:01 > 0:05:04Well, there's definitely a rental market round here.
0:05:04 > 0:05:06You'd need to talk to a lettings agent
0:05:06 > 0:05:09and find out what the demand for that kind of flat would be
0:05:09 > 0:05:12and then you'd talk to a builder to find out how much it would cost.
0:05:12 > 0:05:16Weigh up the economies. My gut feeling is, nah, leave it as it is.
0:05:23 > 0:05:26Two flats is an option though
0:05:26 > 0:05:29and one the auction catalogue also suggests.
0:05:29 > 0:05:32Whatever route you decide to take, there are some fundamentals to address here,
0:05:32 > 0:05:35from the electrics to the central heating
0:05:35 > 0:05:37and, of course, sorting out the layout upstairs.
0:05:37 > 0:05:40There's a rear yard which as the catalogue suggests
0:05:40 > 0:05:44could be used for parking with the relevant consent
0:05:44 > 0:05:46and access from the side road.
0:05:46 > 0:05:50Otherwise, it's a case of getting a permit for this busy street.
0:05:50 > 0:05:51Lots to think about here.
0:05:51 > 0:05:54What does a local property expert make of this end terrace
0:05:54 > 0:05:57that was guided at £45,000?
0:05:59 > 0:06:02I think what I do like about it is the rooms are a great size.
0:06:02 > 0:06:05Nice high ceilings, two good-sized reception rooms
0:06:05 > 0:06:09and also you've got a fairly decent kitchen at the back.
0:06:09 > 0:06:12What should be done here?
0:06:12 > 0:06:15I think it's top to bottom.
0:06:15 > 0:06:18You'll probably find when you take the wallpaper off,
0:06:18 > 0:06:19the plaster will fall off the walls.
0:06:19 > 0:06:23New central heating system, windows. Pretty much everything really.
0:06:23 > 0:06:25Once renovated,
0:06:25 > 0:06:30what could the potential sale value of this property be?
0:06:30 > 0:06:33I think if you wanted to sell the property as a two-bedroomed house,
0:06:33 > 0:06:36you would achieve £90,000 on the current market.
0:06:36 > 0:06:38There's potential to make money here.
0:06:38 > 0:06:42Is it just as good a prospect as a buy to let?
0:06:42 > 0:06:46I think if the property's renovated to a good standard,
0:06:46 > 0:06:49you would achieve £495 per calendar month.
0:06:50 > 0:06:53Well, it's a lot of house with a lot of potential
0:06:53 > 0:06:57and a lot of options in a good rental area.
0:06:57 > 0:06:59So, I think a decent one to go for.
0:06:59 > 0:07:02Let's see who fancied it when it went under the hammer.
0:07:02 > 0:07:04Start me off - 45,000.
0:07:04 > 0:07:08That's where we want to start, £45,000 we're looking for.
0:07:08 > 0:07:1345,000 then at the back. Do we see 46? £46,000.
0:07:13 > 0:07:16At £47,000. 47,000 I have.
0:07:16 > 0:07:2148,000 it's against, 48 I have, at £48,000. 49.
0:07:21 > 0:07:2449,000. Do we see 50? 50 I'm looking for now.
0:07:24 > 0:07:3049, put you in for a half, 49,500. At £50,000, new bid. At £50,000.
0:07:30 > 0:07:34At 50,500. 51, sir.
0:07:34 > 0:07:40At 51,000. 51 and a half. 52.
0:07:40 > 0:07:4652 and a half. 53? At 53,000. 53 and a half.
0:07:46 > 0:07:48At 53,500. 54.
0:07:48 > 0:07:53At 54, 54 and a half. 55, sir.
0:07:53 > 0:07:5755,000. 55 and a half?
0:07:57 > 0:08:0055,000 at the back for the first time.
0:08:00 > 0:08:03At 55,000 for the second time.
0:08:03 > 0:08:0555,000, third and final time.
0:08:05 > 0:08:08You've won at the back.
0:08:09 > 0:08:11At £55,000.
0:08:11 > 0:08:15The successful bid of £55,000 came from property developer
0:08:15 > 0:08:18Narendra, on behalf of his son, Feresh.
0:08:18 > 0:08:20Feresh runs his own marketing company in Leeds
0:08:20 > 0:08:24but the family used to live in this area so know it well.
0:08:24 > 0:08:26This is his first investment property
0:08:26 > 0:08:29and Dad's delighted to give him a helping hand.
0:08:29 > 0:08:35MUSIC: "Poppa Don't Mind At All" by Supertramp
0:08:35 > 0:08:39- Feresh, Narendra, lovely to meet you both. Congratulations. - Nice to meet you.
0:08:39 > 0:08:42- Tell me why you wanted to buy this place.- Well, what it was,
0:08:42 > 0:08:45I'd looked at three or four properties at the moment
0:08:45 > 0:08:47and I was actually looking to buy a house for myself,
0:08:47 > 0:08:50but with the way the market is at the moment, I didn't think it was
0:08:50 > 0:08:52worthwhile doing at the moment.
0:08:52 > 0:08:54You spend a lot of money and you potentially lose a lot of value
0:08:54 > 0:08:57so my dad has bought a couple of investment properties
0:08:57 > 0:09:00and I thought what I'd do is get an investment property at the moment
0:09:00 > 0:09:03and obviously it's round the corner from where I was born.
0:09:03 > 0:09:06There's a hospital round the corner, there's a pub and a chippy.
0:09:06 > 0:09:10Right, all you need. You've been doing this for a while, have you?
0:09:10 > 0:09:13Yeah, for a while, a good few properties myself.
0:09:13 > 0:09:15Mostly in this area?
0:09:15 > 0:09:19- Here, Manchester, Wibdenshaw, different places.- Great.
0:09:19 > 0:09:22You've inherited your dad's passion for property, have you?
0:09:22 > 0:09:24No, I'm trying. Very inexperienced.
0:09:24 > 0:09:27Narendra's been going to auction
0:09:27 > 0:09:30since he bought his first property in 1983
0:09:30 > 0:09:34so Feresh is in a great position to learn from his dad's experience.
0:09:34 > 0:09:36There's just one small problem.
0:09:36 > 0:09:39At the auction, one of the worries is he always gets a little bit over-excited.
0:09:39 > 0:09:41That's always a bit of a problem.
0:09:41 > 0:09:44- Especially when he's spending your money.- Exactly.
0:09:44 > 0:09:46I don't think he's allowed to any auctions any more,
0:09:46 > 0:09:48especially not on my behalf anyway.
0:09:56 > 0:09:59Although this is Feresh's first investment adventure,
0:09:59 > 0:10:01his dad has a portfolio of around 20 properties
0:10:01 > 0:10:03and will oversee this renovation.
0:10:03 > 0:10:06That will include checking the wiring,
0:10:06 > 0:10:09updating the central heating, fitting new windows
0:10:09 > 0:10:12plus a back and front door and that's just for starters.
0:10:12 > 0:10:14Any plans for any major structural work at all?
0:10:14 > 0:10:17I don't think there's any major structure work.
0:10:17 > 0:10:21It's mainly modernising the property to a standard.
0:10:21 > 0:10:25As you can see, nothing's been done for a long time.
0:10:25 > 0:10:28It's a new kitchen, new bathroom.
0:10:28 > 0:10:30- And the partitioning upstairs. - Tell me about that.
0:10:30 > 0:10:32So you've got a walkway through the bathroom.
0:10:32 > 0:10:36I think at the moment you have to go through one of the bedrooms which is not ideal for anyone.
0:10:36 > 0:10:39Right, so that's a simple stood partition wall.
0:10:39 > 0:10:43A simple partition wall but again, I think that definitely needs doing.
0:10:43 > 0:10:46What about the idea potentially of turning it into flats?
0:10:46 > 0:10:47Have you thought about that?
0:10:47 > 0:10:49I don't think we want to do that really.
0:10:49 > 0:10:53I know you get more rent and all that but more headache as well.
0:10:53 > 0:10:56It's more headache and I don't think in an ideal world,
0:10:56 > 0:10:59in my own opinion, I don't think it's suitable for two flats.
0:10:59 > 0:11:02I think it would be quite on top of one another.
0:11:02 > 0:11:04Well, that's what flats are, aren't they?
0:11:05 > 0:11:08Yes, there's enough to do here without dividing it into flats.
0:11:08 > 0:11:12Feresh plans to rent this out, but as he lives in Leeds,
0:11:12 > 0:11:14it'll be his dad, Narendra, who will oversee the work.
0:11:14 > 0:11:17But it's very much Feresh's budget.
0:11:17 > 0:11:21How much do you think it's going to cost to sort it out?
0:11:21 > 0:11:26I think anything between 10, 11 or 12 on initial estimates.
0:11:26 > 0:11:29I'd say we estimate 10 but these things always spill over
0:11:29 > 0:11:31- so probably say 11-12. - I think we should do it for 10.
0:11:31 > 0:11:33You're more optimistic.
0:11:33 > 0:11:37- You want to be here making sure everything's done on budget. - It'll be done.
0:11:37 > 0:11:39What's the timescale?
0:11:39 > 0:11:42I'd probably say three to four months, being realistic.
0:11:42 > 0:11:45Each individual area's got to be done, the central heating and so on,
0:11:45 > 0:11:47so I'd say about three to four months.
0:11:47 > 0:11:50- Is the plan then to buy more property?- Ideally.
0:11:50 > 0:11:55I think it's a good market at the moment for picking up low value rental accommodation.
0:11:55 > 0:11:58Obviously, if you can get that and you're doing them up
0:11:58 > 0:12:02and putting them on the market, I think it's a supplementary to a pension.
0:12:02 > 0:12:03Great.
0:12:03 > 0:12:06Congratulations. Good luck, we look forward to seeing how you get on.
0:12:06 > 0:12:08- Thank you.- Thank you.
0:12:09 > 0:12:14Well, an interesting property for Feresh's first foray
0:12:14 > 0:12:16into property developing.
0:12:16 > 0:12:19At least he's got Dad to help him out. How will they get on?
0:12:19 > 0:12:21You can find out later in the show.
0:12:25 > 0:12:32Today I'm in Essex, a county fit for a king. Or at least it used to be.
0:12:32 > 0:12:34In days gone by, many noblemen
0:12:34 > 0:12:37and royal subjects enjoyed this part of the country.
0:12:37 > 0:12:40Hence all the place names that pay homage to them.
0:12:40 > 0:12:42And the regal theme doesn't end there,
0:12:42 > 0:12:44because this area is called Harold Wood.
0:12:44 > 0:12:45After King Harold,
0:12:45 > 0:12:48or Harold Harefoot as he's more commonly known.
0:12:48 > 0:12:50Apparently he enjoyed hunting deer
0:12:50 > 0:12:52in the forest that covered this area.
0:12:52 > 0:12:54Unfortunately, the forest is long gone,
0:12:54 > 0:12:58but it's been replaced with lots of desirable properties,
0:12:58 > 0:13:02a mainline train station and it's also home to today's auction lot.
0:13:02 > 0:13:06The place I'm here to see is in this attractive road.
0:13:06 > 0:13:07It's always good to see
0:13:07 > 0:13:10that neighbours take care of their properties.
0:13:10 > 0:13:14And here it is, a four bedroomed semi-detached house with a garage.
0:13:14 > 0:13:18Now, it had a guide price of just £180,000.
0:13:18 > 0:13:20Let's see what it's like inside.
0:13:20 > 0:13:21Looks can be deceiving,
0:13:21 > 0:13:25but from the outside this could almost be a new house.
0:13:25 > 0:13:30First impressions, it looks better from the outside!
0:13:30 > 0:13:32The kitchen does need a fair bit of work.
0:13:32 > 0:13:34Some new units, a new sink,
0:13:34 > 0:13:37in fact the whole of the kitchen needs doing.
0:13:37 > 0:13:40You've got a downstairs loo, that will need replacing,
0:13:40 > 0:13:42but the good thing is, there is a downstairs loo.
0:13:42 > 0:13:44All the plumbing's there, which is great,
0:13:44 > 0:13:46and what I do like about this house is the size.
0:13:46 > 0:13:52Really nice big dining room, complete with its own serving hatch.
0:13:52 > 0:13:54Fantastic.
0:13:54 > 0:13:58The proportions are good, chunky old stairs leading to the bedrooms,
0:13:58 > 0:14:01and at the back of the property, a fair sized lounge.
0:14:01 > 0:14:03It needs a lot of work doing in here,
0:14:03 > 0:14:07you need to get back all the wallpaper and it needs carpets.
0:14:07 > 0:14:09It needs a new radiator,
0:14:09 > 0:14:12but it has got brand-new double glazing which is a real bonus.
0:14:12 > 0:14:17I think this house is an ideal family starter home.
0:14:18 > 0:14:20It may all be a bit tired,
0:14:20 > 0:14:23but the bones of this house are still strong.
0:14:23 > 0:14:27# Rock Solid, steady as we go. #
0:14:27 > 0:14:31There's even a brand-new boiler, so that's £1,000 saved straightaway.
0:14:31 > 0:14:34Upstairs there are four good-sized bedrooms,
0:14:34 > 0:14:37with an ensuite off the main bedroom.
0:14:37 > 0:14:41Again, it needs replacing but the plumbing's in place.
0:14:41 > 0:14:45There's even a lovely garden out back which is perfect for a family.
0:14:46 > 0:14:50But is there room to create even more space inside?
0:14:50 > 0:14:52Let's head out front.
0:14:52 > 0:14:53As you can see here,
0:14:53 > 0:14:58you already have off-road parking in the form of this driveway.
0:14:58 > 0:15:01So is a garage really necessary?
0:15:01 > 0:15:04You could think about turning this into another room downstairs,
0:15:04 > 0:15:07then you would increase the value of the property.
0:15:07 > 0:15:09Well, that's not possible, I'm afraid.
0:15:09 > 0:15:14The original title deeds state the garage must be retained as a garage.
0:15:14 > 0:15:16Now, you could appeal this, of course,
0:15:16 > 0:15:19but I think permission would be extremely hard to come by.
0:15:19 > 0:15:23Reading the legal pack is a must for any auction purchase.
0:15:23 > 0:15:24If you bought this blind
0:15:24 > 0:15:27and were thinking about converting that garage,
0:15:27 > 0:15:30well it could come as a very nasty surprise.
0:15:33 > 0:15:36Still, the guide price of £180,000
0:15:36 > 0:15:38isn't a lot for this neck of the woods.
0:15:38 > 0:15:41I think this place could be a really good buy.
0:15:41 > 0:15:44Time to hear from a local estate agent.
0:15:44 > 0:15:48It is a really good location, you've got the station up the road,
0:15:48 > 0:15:50just at the end of the road, basically,
0:15:50 > 0:15:51which takes you straight to
0:15:51 > 0:15:56Liverpool Street station, within about half an hour, 40 minutes.
0:15:56 > 0:15:59Also bus links into Romford and surrounding areas as well.
0:15:59 > 0:16:03Good schools, primary, junior and secondary.
0:16:03 > 0:16:06So it's definitely a family-orientated area.
0:16:07 > 0:16:09So ten out of ten for location,
0:16:09 > 0:16:13bearing in mind that guide price of £180,000,
0:16:13 > 0:16:17how much could it be worth once brought up to modern standards?
0:16:17 > 0:16:19Once this property is renovated,
0:16:19 > 0:16:23I do think we can sell this property for £270,000-£275,000.
0:16:23 > 0:16:27So money definitely to be made here,
0:16:27 > 0:16:30if you don't get carried away with the renovations.
0:16:30 > 0:16:33How much could be worth on the rental market?
0:16:33 > 0:16:37We could rent this property out per calendar month around £1,300-£1,400.
0:16:37 > 0:16:41Both the resale and rental values are strong,
0:16:41 > 0:16:45plus the transport links here are a major selling point.
0:16:45 > 0:16:49You can be in central London in just half an hour, which is amazing.
0:16:49 > 0:16:51The house doesn't require too much work,
0:16:51 > 0:16:54so I think this one is a good one to go for.
0:16:54 > 0:16:57Let's see who else thought so as we headed to auction.
0:16:57 > 0:16:59200 anywhere? At 200?
0:16:59 > 0:17:02200. 201 anywhere?
0:17:02 > 0:17:03201.
0:17:03 > 0:17:06202. 203. 204.
0:17:06 > 0:17:10205. 206. Who?
0:17:10 > 0:17:11- 210.- 210. 211?
0:17:11 > 0:17:15Well, so much for the guide price of £180,000.
0:17:15 > 0:17:19There's obviously a lot of interest in this four-bed semi.
0:17:19 > 0:17:24We rejoin bidding at a whopping £235,000.
0:17:24 > 0:17:26236, 237.
0:17:26 > 0:17:28238?
0:17:28 > 0:17:31We've got 237 at the back.
0:17:31 > 0:17:33Looking for 238?
0:17:33 > 0:17:39If not, 237. First time, second time...
0:17:39 > 0:17:41238, another spot.
0:17:41 > 0:17:42239.
0:17:42 > 0:17:44240.
0:17:44 > 0:17:46241.
0:17:46 > 0:17:47242.
0:17:47 > 0:17:50242, 243.
0:17:50 > 0:17:52244.
0:17:52 > 0:17:53245?
0:17:54 > 0:17:57Have a think. 244, sitting down.
0:17:57 > 0:18:00245?
0:18:00 > 0:18:02Anywhere else, 245?
0:18:02 > 0:18:05If not, 244, in the blue.
0:18:05 > 0:18:09First time, second time, third and last time. All done?
0:18:11 > 0:18:13Sold, 244.
0:18:13 > 0:18:15The successful bid,
0:18:15 > 0:18:18which was a massive £64,000 over the guide price
0:18:18 > 0:18:22came from auditor and family man, Matt.
0:18:23 > 0:18:25He's bought the place with his partner, Donna,
0:18:25 > 0:18:28and their growing family.
0:18:28 > 0:18:32# A family man. #
0:18:32 > 0:18:35They paid £244,000 for their new home,
0:18:35 > 0:18:38and I met them to find out their plans.
0:18:38 > 0:18:41Guys, congratulations. This is brilliant news for the both of you.
0:18:41 > 0:18:44What was it like at the auction for you, Matt?
0:18:44 > 0:18:46It was OK, I felt I handled it pretty well.
0:18:46 > 0:18:49I won the bid, and they said, "Come out and fill out this paperwork."
0:18:49 > 0:18:52It was only at that point, really, that my hand was shaking
0:18:52 > 0:18:55and I felt, "Perhaps I didn't handle it as well as I thought."
0:18:55 > 0:18:59Did you go to the auction on the day really wanting to buy this house?
0:18:59 > 0:19:01Yeah. I mean, I was at home with our ten-day-old daughter.
0:19:01 > 0:19:05So I was on the other end of the phone, waiting for it to ring.
0:19:05 > 0:19:07It took a while for him to get through,
0:19:07 > 0:19:10but the longer it went I thought, "He must have got it."
0:19:10 > 0:19:13We went a bit over budget, but I think it was worth it.
0:19:13 > 0:19:16When he said to you, "I've got the property, it's ours!"
0:19:16 > 0:19:17What did you do?
0:19:17 > 0:19:20I first thought, "How much?" That was the first question.
0:19:20 > 0:19:23Once he answered that I panicked a bit, then I thought,
0:19:23 > 0:19:26"Yeah, at least we've got our first home and it's all good."
0:19:28 > 0:19:31The couple have been living in rented accommodation
0:19:31 > 0:19:34with their two-year-old son, Jack.
0:19:34 > 0:19:36But with their daughter Holly's arrival
0:19:36 > 0:19:38they needed a place of their own.
0:19:38 > 0:19:42On top of that, the tenancy of their rented house was coming to an end,
0:19:42 > 0:19:45and they could only extend by one month, max.
0:19:45 > 0:19:47So, no pressure then.
0:19:47 > 0:19:51# Pressure, pushing down on me
0:19:51 > 0:19:54# Pressing down on you No man ask for. #
0:19:54 > 0:19:59You are taking quite a bit on here. A new baby, a new home.
0:19:59 > 0:20:02You've only got a few weeks left on your tenancy. Slightly panicking?
0:20:02 > 0:20:04- I am.- We should be!
0:20:04 > 0:20:07He's a bit laid-back about everything, but I'm worried.
0:20:07 > 0:20:09- Everything will work out in the end. - Yeah, of course it will.
0:20:09 > 0:20:13So, Matt, tell me a little bit about yourself. What's your background?
0:20:13 > 0:20:17Originally, when I was younger, a teenager going into early adulthood,
0:20:17 > 0:20:19I managed to eek a living as a shot-putter.
0:20:19 > 0:20:24I competed for Great Britain, went to the Commonwealth Games in 1994,
0:20:24 > 0:20:26but that all came to an end when I was about 28,
0:20:26 > 0:20:28and then I had to start working for a living.
0:20:28 > 0:20:30So I am now working as an auditor.
0:20:30 > 0:20:33- Are you competing any more or is that it?- No, I had to give it up.
0:20:33 > 0:20:36I hurt my elbow and had three different surgeries.
0:20:36 > 0:20:38The third one sort of finished me off.
0:20:38 > 0:20:40It's all working now with a pencil,
0:20:40 > 0:20:44and not lifting any weights or running around and jumping around.
0:20:44 > 0:20:48So I'm guessing Matt won't be doing the work himself, then.
0:20:48 > 0:20:51That's a shame, because Donna's got some pretty big plans.
0:20:52 > 0:20:57We're thinking of knocking down between the dining room and the kitchen.
0:20:57 > 0:21:01And possibly bricking up both doors, so we've got more room.
0:21:01 > 0:21:02That's the plan.
0:21:02 > 0:21:05So you're going to get rid of that nice little serving hatch?
0:21:05 > 0:21:08You know, I think that will be a great idea, to really open space up.
0:21:08 > 0:21:12You can have, especially as you've got a family and young children,
0:21:12 > 0:21:15to have the kitchen and dining space will be ideal for you.
0:21:15 > 0:21:17What about access to the garden, though?
0:21:17 > 0:21:19We going to have French doors, so,
0:21:19 > 0:21:23we'll block off that door going out from the kitchen and have a window.
0:21:23 > 0:21:26Then we'll have the French doors
0:21:26 > 0:21:28and then hopefully, in time, have a conservatory
0:21:28 > 0:21:30so it will be quite a nice lead out to the garden.
0:21:30 > 0:21:35- So you've not got long to do this place up?- No. No, we haven't.
0:21:35 > 0:21:38The other thing is, we wanted to convert the garage to a living space
0:21:38 > 0:21:41and possibly have that as a playroom for the children.
0:21:41 > 0:21:46Our solicitor let us know that there is a covenant on the original plans
0:21:46 > 0:21:50that actually forbids us from converting it into a living space.
0:21:50 > 0:21:53Now we have to apply for planning permission to get that reversed.
0:21:53 > 0:21:56- That's eight weeks, we are told. - We're running out of time.
0:21:56 > 0:21:59So you didn't know about the fact that you couldn't convert
0:21:59 > 0:22:01the garage until after the auction?
0:22:01 > 0:22:04- Because you didn't read the legal pack?- Didn't read it well enough.
0:22:04 > 0:22:08Why did you not get somebody to read it for you just to check that out?
0:22:08 > 0:22:12- Did our solicitor look? No, probably not.- No, no.
0:22:12 > 0:22:16I think I was just too cheap, I didn't want to pay somebody to do it.
0:22:16 > 0:22:20- I trusted Matt. - You've let her down, Matt!
0:22:20 > 0:22:23I came back from the auction, Donna had gone on to your website
0:22:23 > 0:22:25and she said there was a list of the top ten things to do,
0:22:25 > 0:22:27and she said, "You've done one of them!"
0:22:29 > 0:22:33So only another nine on the list to consider, then.
0:22:33 > 0:22:36But the pressure is still on to get as much done as soon as possible
0:22:36 > 0:22:41because dust and renovation don't mix well with small children.
0:22:41 > 0:22:46- So what's your budget for the work here?- About £24,000.- £24,000.
0:22:46 > 0:22:49OK. And do you think you can cover all the work with £24,000?
0:22:49 > 0:22:52Originally I thought, yes.
0:22:52 > 0:22:54But as I started to look into it more and more,
0:22:54 > 0:22:56then I can see the money eaten away.
0:22:56 > 0:22:59So we might have to pull down some more loans from somewhere else.
0:22:59 > 0:23:01But we're hoping we can stay in budget.
0:23:01 > 0:23:04So what are you most looking forward to, Donna, as a mum, here?
0:23:04 > 0:23:07What are you most looking forward to doing when you move in?
0:23:07 > 0:23:11Just having space, that's the main thing for me.
0:23:11 > 0:23:14It has been quite difficult where we're living.
0:23:14 > 0:23:16Especially with the baby coming along.
0:23:16 > 0:23:19That is the main thing for me, just to be able to get organised
0:23:19 > 0:23:21and be a better mum than I'm being at the moment,
0:23:21 > 0:23:23because it's just chaotic at the moment.
0:23:23 > 0:23:27- I can't wait to see what it's like when it's finished.- Neither can we!
0:23:27 > 0:23:30Congratulations. Really nice to meet you today, well done. Thanks.
0:23:30 > 0:23:31- Thank you.- Thank you.
0:23:32 > 0:23:34Matt and Donna have a deadline,
0:23:34 > 0:23:37they have to move in in less than four weeks.
0:23:37 > 0:23:40OK, so they could extend their contract with their landlord,
0:23:40 > 0:23:43but that only gives them an extra month.
0:23:43 > 0:23:45The pressure is most definitely on.
0:23:45 > 0:23:49We'll see how they got on, later in the show.
0:23:51 > 0:23:58Coming up in Stoke, I'll recap some Homes Under The Hammer golden rules.
0:23:58 > 0:24:00It really pays to check it out.
0:24:01 > 0:24:04In Essex, have Matt and Donna
0:24:04 > 0:24:07left anything untouched in their four-bed house?
0:24:07 > 0:24:11Other than the doorframes, everything has been replaced.
0:24:12 > 0:24:17But first, in Greater Manchester, Feresh couldn't have done it alone.
0:24:17 > 0:24:19My father has been a really great help.
0:24:19 > 0:24:21He has project managed the whole job.
0:24:24 > 0:24:26Back now to Ashton-under-Lyne
0:24:26 > 0:24:29where Feresh was embarking on his first renovation
0:24:29 > 0:24:32with the help of his father, Narendra.
0:24:32 > 0:24:37It was Narendra who'd successfully bid £55,000 at auction
0:24:37 > 0:24:41on Feresh's behalf for this two-bedroom end-terrace.
0:24:41 > 0:24:43Narendra's an old hand at property auctions,
0:24:43 > 0:24:45he bought his first one in 1982
0:24:45 > 0:24:48but he hasn't lost any of his enthusiasm.
0:24:49 > 0:24:53At the auction one of the worries is that he gets a bit overexcited.
0:24:53 > 0:24:55That is always a bit of a problem.
0:24:55 > 0:24:58- Especially when he's spending your money.- Exactly, yes.
0:24:58 > 0:25:02I don't think he's allowed to any auctions any more. Not on my behalf, anyway!
0:25:02 > 0:25:07For a first project, Feresh got a property with lots to do.
0:25:07 > 0:25:09The ground floor was in a dire state,
0:25:09 > 0:25:12while upstairs was rather peculiar.
0:25:12 > 0:25:18There was the start of some partitioning and the bathroom was less than convenient,
0:25:18 > 0:25:20as it was accessed through the second bedroom.
0:25:20 > 0:25:23Dad Narendra was overseeing the renovation,
0:25:23 > 0:25:26which they reckoned would take three to four months to do.
0:25:26 > 0:25:31Less than ten weeks later, we're back to see what they've achieved.
0:25:35 > 0:25:37Outside, new windows have been fitted
0:25:37 > 0:25:39and the guttering has been replaced.
0:25:39 > 0:25:42But it's inside where bigger changes can be seen.
0:25:59 > 0:26:02The kitchen was a real mess before.
0:26:02 > 0:26:06All the units were kind of hanging off and needed a bit of re-tiling.
0:26:06 > 0:26:09The plastering was required to be done again.
0:26:09 > 0:26:14It needed a new oven and system, a new boiler, new floor, as well.
0:26:14 > 0:26:16It's had a full make-over.
0:26:16 > 0:26:19It certainly has, and what a difference.
0:26:21 > 0:26:23How's it looking upstairs?
0:26:23 > 0:26:28Well, there's a new, swanky bathroom in place and, guess what?
0:26:28 > 0:26:30It has a separate access now!
0:26:35 > 0:26:37A corridor has been created
0:26:37 > 0:26:39by stealing space from the rear bedroom.
0:26:39 > 0:26:40It makes much more sense
0:26:40 > 0:26:43and the size of the bedroom hasn't been compromised too much.
0:26:43 > 0:26:47Remember that odd partitioning in the front bedroom?
0:26:47 > 0:26:49That's gone and just look at it now.
0:26:50 > 0:26:54Was that the biggest job they had to deal with?
0:26:54 > 0:26:57I think the biggest job was probably the plastering.
0:26:57 > 0:27:02I said at the start, because I think it needed to be taken down from scratch.
0:27:02 > 0:27:07I was so surprised when I came back after a week and a half to see progress had been made.
0:27:07 > 0:27:10I think it was time-consuming, but it was all worthwhile.
0:27:10 > 0:27:14Feresh runs his own marketing company across the Pennines in Leeds,
0:27:14 > 0:27:17so could not spend much time on site.
0:27:17 > 0:27:19So it was his dad Narendra
0:27:19 > 0:27:23who took care of overseeing the project on his behalf.
0:27:23 > 0:27:27It's been very exciting. It was frightening, initially,
0:27:27 > 0:27:30when we started taking the plasterwork out.
0:27:30 > 0:27:32I was thinking it's going to be a big job.
0:27:32 > 0:27:35But, with the two people I had working,
0:27:35 > 0:27:38they were very good workers and they helped me out a lot.
0:27:38 > 0:27:41And, er, now that it's finished,
0:27:41 > 0:27:45- I feel like doing it again! - HE CHUCKLES
0:27:45 > 0:27:46My father's been a great help.
0:27:46 > 0:27:49He's project-managed the whole job.
0:27:49 > 0:27:53When we first came, I was worried about the scale of the work required.
0:27:53 > 0:27:57I'm really pleased with the work that's been done
0:27:57 > 0:28:00and I've got a lot to thank my dad for! HE LAUGHS
0:28:02 > 0:28:05Narendra has certainly gone the extra mile for his son,
0:28:05 > 0:28:10but he's obviously happy to help Feresh with his first project.
0:28:10 > 0:28:12I feel great.
0:28:12 > 0:28:14I've put him up on the property ladder,
0:28:14 > 0:28:15because, these days...
0:28:15 > 0:28:17He's doing a good job in his own business,
0:28:17 > 0:28:21but you never know what can happen in future.
0:28:21 > 0:28:24So he's got one or two properties he can fall back on.
0:28:24 > 0:28:29Yes. In these uncertain times it's always good to have a back-up plan.
0:28:29 > 0:28:34Let's talk figures. How much dosh has been dished out?
0:28:34 > 0:28:36The original budget was about 10-12,000.
0:28:36 > 0:28:41Looking at the 12,000, but I think we spent about 13,400.
0:28:41 > 0:28:43So around that region.
0:28:43 > 0:28:46A little over budget, but was it money well spent?
0:28:46 > 0:28:50Adding their spend to the purchase price of 55,000
0:28:50 > 0:28:54makes a total outlay just short of 68,500.
0:28:55 > 0:28:59Time to find out if they'll reap rewards.
0:28:59 > 0:29:03So we asked two local estate agents for their views.
0:29:03 > 0:29:06I'm really impressed with the property. They finished it very well
0:29:06 > 0:29:08and it will appeal to a wide market.
0:29:08 > 0:29:13The space on offer is good for the average terraced.
0:29:13 > 0:29:14You've got two good-sized bedrooms.
0:29:14 > 0:29:18You can get a double bedroom in both, that will widen your market.
0:29:18 > 0:29:22Kitchen and bathroom are new, clean and tidy.
0:29:22 > 0:29:24It's a very attractive property.
0:29:24 > 0:29:28It's in a very good area, local to the Tameside Hospital
0:29:28 > 0:29:31and you've got a number of primary schools around here, so, again,
0:29:31 > 0:29:34young families or young professionals it will appeal to.
0:29:34 > 0:29:40Feresh wants to rent this house out. What income could that earn?
0:29:40 > 0:29:45I would say you could rent this easily, given the hospital nearby,
0:29:45 > 0:29:48for a minimum of £485 per calendar month.
0:29:48 > 0:29:50If we were going to rent this out,
0:29:50 > 0:29:54I would expect to achieve around £495 per calendar month.
0:29:54 > 0:29:59That's a healthy yield of around 8.5%.
0:29:59 > 0:30:03And to kill our curiosity, what could it make on the resale market?
0:30:03 > 0:30:06Remember, the total spend is nearly 68,500.
0:30:06 > 0:30:10If I were to put this property on the market today,
0:30:10 > 0:30:13I'd put it on the market at £80,000.
0:30:13 > 0:30:17I would suggest the maximum you would realise at this current time
0:30:17 > 0:30:20is £75,000.
0:30:22 > 0:30:25That's a potential gross profit of between £6,500
0:30:25 > 0:30:30and £11,500, minus the usual selling expenses.
0:30:30 > 0:30:33So rental is definitely the better option here.
0:30:33 > 0:30:37It's all gone well. So is Feresh planning to do another?
0:30:37 > 0:30:41Will I do it again? If my dad helps me, yes! Without, no chance.
0:30:45 > 0:30:48# Stoke my fire, baby
0:30:48 > 0:30:51# Stoke it good and strong
0:30:53 > 0:30:55# Pile it way up high
0:30:55 > 0:31:00- # So I burn all night long.- #
0:31:00 > 0:31:02Stoke-on-Trent, or the Potteries.
0:31:02 > 0:31:05There were once over 200 factories
0:31:05 > 0:31:09producing ceramics which were exported around the world.
0:31:09 > 0:31:12In recent times, that's dropped to just 30
0:31:12 > 0:31:16and the urban decay is all around to be seen.
0:31:16 > 0:31:20However, there are green shoots, regeneration projects,
0:31:20 > 0:31:25all over the city, including here, the City Waterside development,
0:31:25 > 0:31:30regenerating areas beside the canal with shops, restaurants and housing.
0:31:30 > 0:31:34Maybe Stoke is getting all fired up once again.
0:31:36 > 0:31:38Old factory sites like this one, apparently,
0:31:38 > 0:31:41have been empty wasteland for years,
0:31:41 > 0:31:45just waiting for this type of investment.
0:31:45 > 0:31:49Now, with £177 million of investment,
0:31:49 > 0:31:51the sun really is fighting through the clouds
0:31:51 > 0:31:55and shining on this corner of Stoke at least.
0:31:55 > 0:31:58Just down the road from the regeneration
0:31:58 > 0:32:00is the property I'm here to see.
0:32:00 > 0:32:03It's on this fairly pleasant street. It's almost a street of two halves.
0:32:03 > 0:32:06On one side, you've got these Victorian houses,
0:32:06 > 0:32:10on the other, there's more modern houses built in the '60s or '70s.
0:32:10 > 0:32:13So depending on what kind of houses you like, new or old,
0:32:13 > 0:32:15you'll either be excited or disappointed
0:32:15 > 0:32:17that this is the property I'm here to see.
0:32:17 > 0:32:21Three bedrooms and a guide price of 50,000 quid. Let's take a look.
0:32:25 > 0:32:29So no period features, pointed gables or fancy brickwork.
0:32:30 > 0:32:35This is a solid, square house, but it does look like a good family home.
0:32:35 > 0:32:39And for a £50,000 guide price, who's to quibble?
0:32:41 > 0:32:44Well, it's a bit of a dark entrance,
0:32:44 > 0:32:47partly due to this, whatever it is on the wall.
0:32:47 > 0:32:49What is that? Is that wallpaper?
0:32:49 > 0:32:52Have you seen anything like that before? Very strange.
0:32:52 > 0:32:55Anyway, whatever it is, it needs to come off.
0:32:55 > 0:32:57A reasonably sized entrance.
0:32:57 > 0:33:00Massive lounge. That is really nice. It's been knocked through at some point.
0:33:00 > 0:33:04And then through to a half-decent-sized kitchen.
0:33:04 > 0:33:07Looking at these tiles and some of these units,
0:33:07 > 0:33:12I don't think this has been changed since the place was built.
0:33:12 > 0:33:14Strangely enough, back in fashion.
0:33:14 > 0:33:19But a very usable space and, yeah, a good, solid little house.
0:33:20 > 0:33:22You could think about changing the layout,
0:33:22 > 0:33:26maybe putting a dividing wall in the middle of the living room
0:33:26 > 0:33:30to create a more formal sitting-room area at the front.
0:33:30 > 0:33:34You could open up the kitchen into a dining room at the back,
0:33:34 > 0:33:38but, of course, the layout of any house
0:33:38 > 0:33:40depends on your personal requirements.
0:33:41 > 0:33:44Upstairs, in this house that went to auction guided at 50,000,
0:33:44 > 0:33:47there are two decent double bedrooms.
0:33:49 > 0:33:52And a small single room at the front.
0:33:55 > 0:33:58There's a separate loo and bathroom,
0:33:58 > 0:34:00but you could knock that through into one.
0:34:00 > 0:34:02But, as with downstairs,
0:34:02 > 0:34:05it depends on what you really want out of the house.
0:34:05 > 0:34:11The tour continues downstairs and fingers on your buzzers,
0:34:11 > 0:34:13just what delight have I found for you at the back?
0:34:15 > 0:34:19Well, back in the lounge, what's behind the blind?
0:34:19 > 0:34:22Sounds like a catchphrase from some cheesy game show,
0:34:22 > 0:34:24but in fact there is just a patio
0:34:24 > 0:34:29and a fairly dishevelled-looking storage area-shed-garage thing.
0:34:29 > 0:34:30What I'm more interested in
0:34:30 > 0:34:33is the fact there is double glazing and central heating.
0:34:33 > 0:34:36Well, or so you might think.
0:34:36 > 0:34:40In fact, the whole house has not got central heating and double glazing.
0:34:40 > 0:34:43You come to the other end of the lounge and a single-glazed unit
0:34:43 > 0:34:44and no radiator.
0:34:44 > 0:34:47If you were looking around this house quickly before the auction,
0:34:47 > 0:34:51you might glance and say, "It's got double glazing, it's got central heating."
0:34:51 > 0:34:55But you would be wrong, so it really pays to check it out.
0:34:55 > 0:34:57# Just one look
0:34:57 > 0:35:01# That's all it took Just one look. #
0:35:01 > 0:35:04The house is only heated downstairs with radiators
0:35:04 > 0:35:07that are run off the fire in the living room.
0:35:07 > 0:35:09There are no radiators upstairs,
0:35:09 > 0:35:12so you might be able to extend the pipe work upstairs
0:35:12 > 0:35:14and add radiators there. But be prepared
0:35:14 > 0:35:16that a new energy-efficient boiler
0:35:16 > 0:35:19and hot water tank could be required.
0:35:25 > 0:35:28We invited the local estate agent to have a look around the property.
0:35:30 > 0:35:33And tell us what he thinks of the financial potential here.
0:35:34 > 0:35:38First impressions of the house is that it's a very good size.
0:35:38 > 0:35:41Three bedrooms would be a good selling point
0:35:41 > 0:35:44and it's also rare to have space for a double garage
0:35:44 > 0:35:46to the rear of the property.
0:35:46 > 0:35:51It really needs basic refurbishment and modernisation.
0:35:51 > 0:35:55Possible rewire, new central heating, new kitchen, new bathroom,
0:35:55 > 0:35:57so it's pretty much nothing out of the ordinary.
0:35:57 > 0:36:01The property went to auction guided at £50,000.
0:36:01 > 0:36:05How much could it be worth after those improvements have been made,
0:36:05 > 0:36:07and would it appeal to the rental market?
0:36:09 > 0:36:12After modernisation, depending to what standard,
0:36:12 > 0:36:15I certainly would feel it would be in excess of £100,000.
0:36:15 > 0:36:18I would anticipate a rental value
0:36:18 > 0:36:21in the region of £500 per calendar month.
0:36:23 > 0:36:27So a good rental property in an area that's set to improve.
0:36:27 > 0:36:30I think hold on to this one for the long-term,
0:36:30 > 0:36:33put your faith in Stoke and you could do very well.
0:36:33 > 0:36:35Let's see who agreed when it went under the hammer.
0:36:35 > 0:36:40What shall we say for lot number one? 35. It's got to be that, surely.
0:36:40 > 0:36:4435. Thank you. At £35,000, opening bid.
0:36:44 > 0:36:48Looking for 40. 40,000 at the back of the room. At £40,000.
0:36:48 > 0:36:5145 is it now? 45 it is.
0:36:51 > 0:36:53At £45,000.
0:36:53 > 0:36:56You want to go one, that's £46,000.
0:36:56 > 0:36:59One to you, sir? 47.
0:36:59 > 0:37:0048.
0:37:00 > 0:37:03The first lot of the day proved very popular.
0:37:03 > 0:37:05Bidding increased in single thousands
0:37:05 > 0:37:07until well over the £50,000 guide price.
0:37:07 > 0:37:0960? 60.
0:37:09 > 0:37:1261. 62. 63.
0:37:12 > 0:37:1464. 65.
0:37:14 > 0:37:1666.
0:37:16 > 0:37:1767.
0:37:17 > 0:37:1968.
0:37:19 > 0:37:2268. Bid's on the back row. £68,000.
0:37:22 > 0:37:2469 anywhere else?
0:37:24 > 0:37:27At £68,000. I'm sell...
0:37:27 > 0:37:29Everybody's waving now. 69.
0:37:29 > 0:37:3370, sir? 70. 71, sir?
0:37:33 > 0:37:35No? 70,000.
0:37:35 > 0:37:38Right on the back at £70,000. Are we all done now?
0:37:39 > 0:37:41£70,000 for the first time.
0:37:41 > 0:37:45£70,000 for the second time.
0:37:45 > 0:37:49Third and final time, are we all done? £70,000.
0:37:49 > 0:37:52Your lot, sir. Well done.
0:37:52 > 0:37:58The final successful bid of £70,000 was made by Gary, a gas fitter.
0:37:58 > 0:38:02He and his wife Christine live locally in Stoke
0:38:02 > 0:38:04and this is the second property he's bought at auction.
0:38:04 > 0:38:08He renovated the first one and sold it on.
0:38:08 > 0:38:10I met up with him
0:38:10 > 0:38:14back at his new purchase to hear about his plans for it.
0:38:15 > 0:38:18- Gary, good to meet you.- And you. - Congratulations.
0:38:18 > 0:38:20Tell me why you wanted to buy this house.
0:38:20 > 0:38:24- It's an investment towards my pension.- Right.
0:38:24 > 0:38:26Why this one over any other?
0:38:26 > 0:38:30Well, it's a regeneration area. I saw the property
0:38:30 > 0:38:32and thought we'd have a go at doing it up.
0:38:32 > 0:38:34Have you got any experience at this?
0:38:34 > 0:38:37Yes, I've done one before, but that was sold on.
0:38:37 > 0:38:38And the plan for this is what?
0:38:38 > 0:38:40To let. We're going to let this one.
0:38:40 > 0:38:44In terms of property renovation, any experience in that?
0:38:44 > 0:38:47Yes, the previous house I had was fire damaged,
0:38:47 > 0:38:52so that was re-plastered, rewired, new kitchen, everything, the works.
0:38:52 > 0:38:56- You did that up and sold it on?- Yes.
0:38:56 > 0:38:59- That was eight years ago.- Oh, gosh! Why the big gap in between?
0:38:59 > 0:39:03We just had a rest. THEY LAUGH
0:39:03 > 0:39:06- What do you do when you're not doing this?- Er, gas fitter.
0:39:06 > 0:39:07- Central heating.- Oh.
0:39:07 > 0:39:10- That's convenient, then.- Plumbing.
0:39:10 > 0:39:12It is for this house. HE LAUGHS
0:39:12 > 0:39:16Yeah. What's going on there? It's like it's got a bit of central heating, but not much.
0:39:16 > 0:39:20Yes, it's worked off the back boiler on the fire.
0:39:20 > 0:39:22They've never had it put in upstairs.
0:39:22 > 0:39:25- So it will all be replaced.- You're the man for that, for sure.- Yes.
0:39:25 > 0:39:29What about the rest of the work? Who's going to do that?
0:39:29 > 0:39:33Electrics, there will be somebody coming in to do that and the windows.
0:39:33 > 0:39:35Everything else will be done by myself.
0:39:35 > 0:39:38- Plastering and the main building works?- Yes.
0:39:38 > 0:39:41- In your spare time, evenings and weekends and stuff?- Yes.
0:39:41 > 0:39:45Evenings, weekends, so the wife won't be seeing much of me for a while.
0:39:45 > 0:39:46THEY LAUGH
0:39:46 > 0:39:49# I wanna go home right now
0:39:49 > 0:39:53- # I wanna go home.- #
0:39:53 > 0:39:55Isn't that often the way with these projects?
0:39:55 > 0:40:00Your home and social life tend to be put on hold.
0:40:02 > 0:40:06Gary's budget is pretty low, just 6-6,500,
0:40:06 > 0:40:09because he's taking on so much of the work himself.
0:40:09 > 0:40:12So talk me through exactly what you're going to do
0:40:12 > 0:40:14to the place to sort it out.
0:40:14 > 0:40:18Er, new windows to the front, new central heating, new kitchen,
0:40:18 > 0:40:22rewire and plastering where required.
0:40:22 > 0:40:25What about downstairs, any other changes down here?
0:40:25 > 0:40:29We may put French windows at the back to open it up onto the garden.
0:40:29 > 0:40:32- Possibly a new garage at the back. - And the timescale?
0:40:32 > 0:40:36Approximately about three months and it will be on the rental market.
0:40:36 > 0:40:40- Were you happy with what you paid? - I did offer 63 before the auction.
0:40:40 > 0:40:41Oh!
0:40:41 > 0:40:43But it was declined, so we had to go to auction.
0:40:43 > 0:40:46- You're still happy with what you paid?- That was my limit.
0:40:46 > 0:40:49If it had gone higher. I wouldn't have bought it.
0:40:51 > 0:40:54I think Gary probably paid about the right price for this house.
0:40:54 > 0:40:58£70,000 wasn't a massive bargain, but at least buying at auction
0:40:58 > 0:41:01meant that, after 28 days, the property was his.
0:41:01 > 0:41:05So none of the stress you can sometimes get
0:41:05 > 0:41:08when the buying process drags on and on.
0:41:10 > 0:41:12And what's next on the agenda for you?
0:41:12 > 0:41:15- After this, probably a holiday. - Holiday!
0:41:15 > 0:41:19- Well, congratulations, nice to meet you.- And you.- Good luck.
0:41:19 > 0:41:21Thank you very much.
0:41:21 > 0:41:25Well, to be able to do a property up pretty much on your own,
0:41:25 > 0:41:29that is certainly the way to keep your costs down.
0:41:29 > 0:41:31I think Gary's got himself a good property here.
0:41:31 > 0:41:35Find out how he gets on with the renovation
0:41:35 > 0:41:40and how Stoke does on the regeneration later in the show.
0:41:43 > 0:41:46We always hope our buyers have set themselves realistic budgets
0:41:46 > 0:41:47and timescales.
0:41:47 > 0:41:49There's only one way to find out if they did
0:41:49 > 0:41:53and that's to catch up with them after they've done the work.
0:41:54 > 0:41:59Back to Harold Wood, near Romford in Essex, where I met Matt, Donna
0:41:59 > 0:42:01and their children Jack
0:42:01 > 0:42:02and new baby Holly.
0:42:02 > 0:42:05The couple paid 244,000 at auction
0:42:05 > 0:42:10for this four-bedroom, semi-detached house that needed lashings of TLC.
0:42:12 > 0:42:16Becoming a family of four meant they outgrew the house they were renting.
0:42:16 > 0:42:18With their tenancy just about to end,
0:42:18 > 0:42:22the pressure was on to complete the renovation here.
0:42:22 > 0:42:24- Were they worried?- I am.
0:42:24 > 0:42:26He's a bit laid-back about everything.
0:42:26 > 0:42:29- Well, I'm worried. - Everything will work out in the end.
0:42:29 > 0:42:30Of course it will!
0:42:30 > 0:42:34I'm the baby of my family, so everything works out for me. I don't seem to worry.
0:42:34 > 0:42:36The property had lain empty for over a year
0:42:36 > 0:42:39and was definitely showing signs of neglect.
0:42:39 > 0:42:41The kitchen needed replacing,
0:42:41 > 0:42:43the ceilings needed to be repaired
0:42:43 > 0:42:46and that's not to mention the state of the bathroom, electrics,
0:42:46 > 0:42:49heating, flooring or decor.
0:42:49 > 0:42:52A total overhaul was needed before they could move in.
0:42:52 > 0:42:55Now, more than two years after I first met them,
0:42:55 > 0:42:59Matt and Donna are finally ready to show us
0:42:59 > 0:43:01how they transformed their first family home.
0:43:10 > 0:43:13Well, the exterior has had a total facelift.
0:43:13 > 0:43:15Let's go inside.
0:43:17 > 0:43:20The wall between the kitchen and dining room has been moved
0:43:20 > 0:43:23and the space opened out with a new fitted kitchen.
0:43:23 > 0:43:27New French doors have replaced the old dining room window,
0:43:27 > 0:43:29allowing access to the garden.
0:43:29 > 0:43:32Walls and ceilings have been re-plastered
0:43:32 > 0:43:34and decorated throughout.
0:43:34 > 0:43:36Upstairs, a new bathroom has been fitted
0:43:36 > 0:43:40and all four bedrooms have been be redecorated.
0:43:40 > 0:43:42It looks like this has been a huge job.
0:43:42 > 0:43:46Other than the door frames, every thing has been replaced.
0:43:46 > 0:43:51We made a decision quite early on we would probably go over budget
0:43:51 > 0:43:53and do it properly, rather than do a bodge job,
0:43:53 > 0:43:56so everything is different.
0:43:56 > 0:43:59When we bought the house, the house was basically a shell.
0:43:59 > 0:44:02The ceilings were falling in, walls were falling in.
0:44:02 > 0:44:04There was a lot of work to do.
0:44:04 > 0:44:07Obviously, new walls, new ceilings have gone in there.
0:44:07 > 0:44:11It's liveable, but it's taken a long time to get it to that condition.
0:44:11 > 0:44:15It certainly has, but what a difference they've made here.
0:44:15 > 0:44:19They must be enjoying their opened-up kitchen
0:44:19 > 0:44:20that leads out onto the garden.
0:44:20 > 0:44:22The kitchen we knocked through
0:44:22 > 0:44:27because I wouldn't have been able to cook in that small kitchen.
0:44:27 > 0:44:29We decided to knock through and it's nice for me
0:44:29 > 0:44:32to be able to see the children when I'm cooking.
0:44:32 > 0:44:35They're sitting there drawing, or whatever they're doing,
0:44:35 > 0:44:36and it's a nice family space.
0:44:36 > 0:44:40I think the biggest job was replacing the roofs on the bedrooms.
0:44:40 > 0:44:44Initially, we thought it was a matter of relaying the asphalt.
0:44:44 > 0:44:46But as they pulled it back, they could see the wood was rotten.
0:44:46 > 0:44:49So the woodwork needed to be replaced,
0:44:49 > 0:44:51that was probably the biggest job out of all of it.
0:44:51 > 0:44:54Matt's an auditor for risk management company,
0:44:54 > 0:44:58but used to earn a living as a competitive shot putter.
0:44:58 > 0:45:01With so much to be done here, the big question is,
0:45:01 > 0:45:04did it all prove too big a weight on his shoulders?
0:45:04 > 0:45:07We sort of came to the realisation,
0:45:07 > 0:45:10once we started looking at what was needed to be doing,
0:45:10 > 0:45:12that we were in over our heads.
0:45:12 > 0:45:16Fortunately, my brother, who was in the building trade,
0:45:16 > 0:45:20stepped in and acted as co-ordinator and got all the workmen in.
0:45:20 > 0:45:24I was pretty much reduced to getting cups of coffee and teas.
0:45:29 > 0:45:33Phew! Thank goodness Matt realised he'd bitten off more than he could chew
0:45:33 > 0:45:37and that his brother was able to step in and save the day.
0:45:37 > 0:45:41But out in the garden, Matt could get his hands dirty.
0:45:41 > 0:45:44The garden was a bit of a mess when we moved in.
0:45:44 > 0:45:47Lots of trees and shrubs that were overgrown.
0:45:47 > 0:45:50There was a rusty fence that was partitioning the garden off
0:45:50 > 0:45:53and we got that all cleared out.
0:45:53 > 0:45:55A guy came in with a mini-JCB
0:45:55 > 0:45:59and managed to rip all the trees and the fence out for us.
0:46:01 > 0:46:05This renovation grew into a much larger task than planned.
0:46:05 > 0:46:08So what affect did that have on the original timescale?
0:46:09 > 0:46:12We got the keys for this house in December.
0:46:12 > 0:46:16We had to be out of our rented accommodation in January.
0:46:16 > 0:46:19Obviously, it was going to take a bit more than four weeks
0:46:19 > 0:46:21to get the house ready to live.
0:46:21 > 0:46:25But we managed to get an extra month and a half from our landlord,
0:46:25 > 0:46:27so from start to finish
0:46:27 > 0:46:30it took about ten weeks to get the house ready to move in.
0:46:30 > 0:46:32As the project became bigger than they'd expected,
0:46:32 > 0:46:36did that impact on their original budget?
0:46:37 > 0:46:39Our original budget was 24,000,
0:46:39 > 0:46:42which we knew was probably unrealistic
0:46:42 > 0:46:45once we saw the state of the building.
0:46:45 > 0:46:49We probably ended up about 45, 50,000.
0:46:49 > 0:46:53So the budget almost doubled, but, of course, this was never
0:46:53 > 0:46:57going to be a short-term profit-making venture.
0:46:57 > 0:46:59It was always intended as their family home.
0:46:59 > 0:47:03Now they're settled in, what do they think of it?
0:47:03 > 0:47:07It's brilliant as a family home. The kids love the garden.
0:47:07 > 0:47:10They've got lots of toys, lots of space out there.
0:47:10 > 0:47:15Obviously, they can play freely, because Matt's got his office now,
0:47:15 > 0:47:20so they enjoy the house. They absolutely love their bedrooms
0:47:20 > 0:47:24and I've done it up exactly how they like, so they love it.
0:47:24 > 0:47:29Including the £244,000 purchase price, the couple have spent
0:47:29 > 0:47:34somewhere between 289-294,000 on this property.
0:47:34 > 0:47:38Have their improvements added value?
0:47:39 > 0:47:43Let's find out what two local estate agents make of it.
0:47:43 > 0:47:44It looks so much different.
0:47:44 > 0:47:48They've done an awful lot really well, to be honest with you,
0:47:48 > 0:47:52considering last time I came here, it was just a wreck.
0:47:52 > 0:47:55You couldn't imagine it would end up looking like this.
0:47:55 > 0:47:57The finish is fine. They kept it neutral, great,
0:47:57 > 0:48:00that's what everybody loves, neutral finish.
0:48:00 > 0:48:02It's got the ground-floor toilet
0:48:02 > 0:48:05which is great, bearing in mind it will be a family that moves here
0:48:05 > 0:48:08and it's great they've got the kitchen-diner.
0:48:08 > 0:48:10The lounge, it's not massive.
0:48:10 > 0:48:12I would have liked to have seen the lounge wider,
0:48:12 > 0:48:15but there's not a lot they can do about that.
0:48:15 > 0:48:16But, in general, it's great.
0:48:16 > 0:48:19And I love the garden. The garden's great. Great location.
0:48:19 > 0:48:21Yeah. A good property.
0:48:21 > 0:48:24So, potentially, what sort of monthly rental
0:48:24 > 0:48:28could a four-bed family home such as this earn?
0:48:28 > 0:48:31Great rental property. Four bedrooms.
0:48:31 > 0:48:35About £1400 per calendar month.
0:48:35 > 0:48:39You'd be able to rent this out the 13-1500 per calendar month.
0:48:39 > 0:48:42That's a reasonable yield of around 5% or 6%.
0:48:42 > 0:48:45But two years after they purchased the house,
0:48:45 > 0:48:49how have their changes affected its resale value?
0:48:49 > 0:48:55Remember, they've spent between 289,000 and 294,000 here.
0:48:55 > 0:48:58Looking at the market at the moment,
0:48:58 > 0:49:00and other properties that have sold,
0:49:00 > 0:49:05I would say that you would be looking for around £290,000.
0:49:05 > 0:49:08If I were to put this property on the market,
0:49:08 > 0:49:11I would recommend it goes on at £290,000.
0:49:12 > 0:49:16I think we pretty much agreed it would be 290.
0:49:16 > 0:49:19- Yes, we guessed 290.- Or even lose a bit of money if we sell.
0:49:19 > 0:49:20I think we pretty much break even,
0:49:20 > 0:49:24but as it's a family home, we're not planning to sell, anyway.
0:49:24 > 0:49:26I'm going to be here when I'm old and grey.
0:49:26 > 0:49:29Well, I'm grey now! So, yeah, it's fine.
0:49:29 > 0:49:31Yeah, happy with that, yeah.
0:49:32 > 0:49:35So having potentially broken even on the project
0:49:35 > 0:49:39and created a home in which to live for many years to come,
0:49:39 > 0:49:44Matt and Donna have successfully achieved what they set out to do.
0:49:44 > 0:49:46We went from a two up, two down.
0:49:46 > 0:49:48Now we've got a four-bedroom house
0:49:48 > 0:49:50and there's plenty of space for all of us.
0:49:50 > 0:49:53The kids get to run around and do what kids need to do,
0:49:53 > 0:49:54so we're all really happy.
0:49:54 > 0:49:56It's a great family home for us.
0:50:01 > 0:50:04Back now to Hanley in Stoke-on-Trent,
0:50:04 > 0:50:06where self-employed gas fitter Gary
0:50:06 > 0:50:11paid £70,000 at auction for this three-bedroom end-of-terrace house.
0:50:12 > 0:50:14It was in need of some updating.
0:50:14 > 0:50:17He had been aware of the property before the auction
0:50:17 > 0:50:20and had already had an offer turned down.
0:50:21 > 0:50:25- I did offer 63 before the auction. - Oh!
0:50:25 > 0:50:28But it was declined, so we had to go to auction.
0:50:28 > 0:50:31- But you're still happy with what you paid?- That was my limit.- Right.
0:50:31 > 0:50:34That was my cut-off point
0:50:34 > 0:50:36and if it had gone higher, I wouldn't have bought it.
0:50:38 > 0:50:41The property was partially double glazed around the back.
0:50:43 > 0:50:48And it had partial central heating, too, just on the ground floor.
0:50:50 > 0:50:54As for that kitchen, it was from another era.
0:50:54 > 0:50:57Gary hoped to do most of the work himself in around three months,
0:50:57 > 0:50:59fitting it around his full-time job.
0:50:59 > 0:51:03But he was going to have to roll up his sleeves and get cracking,
0:51:03 > 0:51:06because as there was so much to do,
0:51:06 > 0:51:08he was going to be up to his eyes in it.
0:51:08 > 0:51:13So not three, but just over four months later, how has he got on?
0:51:29 > 0:51:31When we first moved in, it was very dark.
0:51:31 > 0:51:37Blue carpets, panelling on the wall. When we removed the panelling,
0:51:37 > 0:51:41the plaster came off, so we had to re-plaster that.
0:51:41 > 0:51:44Fitted new central heating, rewire,
0:51:44 > 0:51:47new windows, laminate floor
0:51:47 > 0:51:51and, obviously, we've painted it white to brighten the room up, because it was very dark.
0:51:53 > 0:51:56And now we're very pleased with the results.
0:51:57 > 0:52:00Upstairs, the renovations continue,
0:52:00 > 0:52:03although there are no structural changes.
0:52:03 > 0:52:05The toilet and bathroom are still separate,
0:52:05 > 0:52:08but the bathroom fittings are completely new.
0:52:08 > 0:52:12In the bedrooms, the built-in wardrobes have been removed,
0:52:12 > 0:52:14new double glazing installed at the front of the property
0:52:14 > 0:52:20and new carpets and fresh decor provide the finishing touches.
0:52:20 > 0:52:25A project of this scale is a large undertaking, even if, like Gary
0:52:25 > 0:52:29you have the necessary skills to do the majority of the work yourself.
0:52:30 > 0:52:32Of course, it does allow you to keep the budget down,
0:52:32 > 0:52:36but fitting it around your day job is a challenge for anyone.
0:52:36 > 0:52:37- # All work - All work
0:52:37 > 0:52:40- # And no play - And no play
0:52:40 > 0:52:41- # No pain - No pain
0:52:41 > 0:52:43# And no gain. #
0:52:43 > 0:52:47I go out, do my work and then ended up coming here,
0:52:47 > 0:52:48putting in whatever I hours I can.
0:52:48 > 0:52:51Probably, four, five hours a day.
0:52:52 > 0:52:56And then the last week, I've been here all the time.
0:52:56 > 0:52:58HE LAUGHS
0:52:58 > 0:53:01# Don't give up your day job
0:53:01 > 0:53:05# Unless you're on TV. #
0:53:05 > 0:53:08Gary had considered putting in French windows,
0:53:08 > 0:53:12opening onto the back garden, but this is not happened.
0:53:12 > 0:53:15The garden doesn't look as though it's changed much, either.
0:53:15 > 0:53:17Even the double garage,
0:53:17 > 0:53:22which was potentially to be replaced with a single, is still as it was.
0:53:22 > 0:53:24So, what's the plan?
0:53:25 > 0:53:26We're going to leave it for now.
0:53:26 > 0:53:31It'll just be tidied up when we get some decent weather.
0:53:31 > 0:53:34The fencing'll be finished this week.
0:53:36 > 0:53:37After all that hard work,
0:53:37 > 0:53:40what are his plans for the property now?
0:53:40 > 0:53:43We're still going to rent.
0:53:43 > 0:53:45Hopefully, tomorrow, somebody's moving in.
0:53:45 > 0:53:47I've even had people trying to buy it.
0:53:47 > 0:53:51Straight after the auction, I had someone approach me to buy it.
0:53:51 > 0:53:56I wasn't tempted. It's going to be my pension fund, at the end of the day.
0:53:56 > 0:54:00# You've got a beautiful future
0:54:00 > 0:54:02# A beautiful future. #
0:54:02 > 0:54:05The original cost of the work was estimated at between
0:54:05 > 0:54:096,000 and 6,500, with most of the work done by Gary himself.
0:54:09 > 0:54:12Has he managed to keep within his budget?
0:54:12 > 0:54:15We've gone well over.
0:54:15 > 0:54:19Were up to about 11,000, just under.
0:54:20 > 0:54:22Quite an overspend here, then,
0:54:22 > 0:54:26but that was because there ended up being more plastering work
0:54:26 > 0:54:30and Gary spent more than he expected on the kitchen and windows.
0:54:30 > 0:54:35So the standard's higher, but has that been at the cost of his profit?
0:54:35 > 0:54:38His budget, added to the purchase price of 70,000,
0:54:38 > 0:54:41makes a total outlay of 81,000.
0:54:42 > 0:54:45Let's find out whether he'll reap the rewards or pay the price
0:54:45 > 0:54:48when it comes to that overspend.
0:54:48 > 0:54:51The changes to the house are really positive.
0:54:51 > 0:54:53It's got a really fresh, modern feel.
0:54:53 > 0:54:58Neutral decor, it's ideal for the type of property.
0:54:58 > 0:55:02First impressions of the property is that it's been done extremely nice.
0:55:02 > 0:55:04It's been decorated to a very high standard
0:55:04 > 0:55:06and they've made the maximum out of the property.
0:55:09 > 0:55:13What would be the best choice to make here, sell or rent it out?
0:55:13 > 0:55:17I think rental is the best route. I think it would sell easily,
0:55:17 > 0:55:20but I think it's targeted at first-time buyers.
0:55:20 > 0:55:23At the moment, it's still difficult for a first-time buyer to get a mortgage.
0:55:23 > 0:55:29I think potentially letting or resale are viable options.
0:55:29 > 0:55:33The market for letting a property like this is very strong at the moment.
0:55:33 > 0:55:36But there is a demand to be able to sell this
0:55:36 > 0:55:38and hopefully make a profit.
0:55:38 > 0:55:41Gary's got tenants lined up, a family, in fact.
0:55:41 > 0:55:43They're ready to move in straight away.
0:55:43 > 0:55:45So what rent could he charge them?
0:55:45 > 0:55:49I would imagine the likely rental income
0:55:49 > 0:55:52would be around £450-£500 per calendar month.
0:55:52 > 0:55:55The rental price I think you could get here
0:55:55 > 0:55:57would be £475 per calendar month.
0:55:57 > 0:56:00It's about right for the area.
0:56:00 > 0:56:04I would've thought 500. 525 I was expecting.
0:56:04 > 0:56:08In fact, Gary's getting £500 a month,
0:56:08 > 0:56:13a yield of 7.5%, but let's check out those resale estimates.
0:56:13 > 0:56:16Remember, he's spent nearly 81,000 here.
0:56:16 > 0:56:21Resale, I would market this property in the region of £105,000.
0:56:21 > 0:56:24Sales value, I'd say around £95,000.
0:56:24 > 0:56:26Nice one, Gary.
0:56:26 > 0:56:29What he spent seems to be reflected in those values,
0:56:29 > 0:56:32which could give them a pre-tax profit of between
0:56:32 > 0:56:36£14,000 and £24,000, minus the usual selling expense.
0:56:36 > 0:56:37But, for now,
0:56:37 > 0:56:41he's happy to rent this out as part of his pension plan.
0:56:41 > 0:56:44Meanwhile, is he raring to go on the next one?
0:56:44 > 0:56:46I've enjoyed doing it,
0:56:46 > 0:56:50but it is very tiring, so I think we're due a little rest now.
0:56:54 > 0:56:57Those stories have now been added to our Hammer archives.
0:56:57 > 0:57:00But we'll have lots more for you next time on Homes Under The Hammer.
0:57:00 > 0:57:02- See you then. - BOTH: Goodbye.
0:57:23 > 0:57:26Subtitles by Red Bee Media Ltd