0:00:02 > 0:00:04Hello, well, property still continues to fascinate us,
0:00:04 > 0:00:06and despite the current market conditions,
0:00:06 > 0:00:08it is still possible to find a bargain.
0:00:08 > 0:00:10Buying at the right price is imperative
0:00:10 > 0:00:13if you want to see any profit at the end of the day.
0:00:13 > 0:00:17Yeah, and one way to do that is to buy your next home under the hammer.
0:00:42 > 0:00:46The properties on the show today are all very different.
0:00:46 > 0:00:48But their new owners will all have the same hopes for them -
0:00:48 > 0:00:51that they turn out to be good investments.
0:00:51 > 0:00:52So let's see what they bought.
0:00:54 > 0:00:56In the North Yorkshire, the period features
0:00:56 > 0:00:59in this listed building have me on my knees.
0:00:59 > 0:01:02Look at these floorboards! Absolutely beautiful.
0:01:03 > 0:01:09But in Nottingham, these floorboards are home to some undesirable guests.
0:01:09 > 0:01:10There they are, look.
0:01:10 > 0:01:14Munching their little way through all your woodwork.
0:01:14 > 0:01:15And the sloping floor
0:01:15 > 0:01:19and strange staircase in this Dover terrace worry me.
0:01:19 > 0:01:22That is a serious issue, I don't like this...
0:01:22 > 0:01:25Not a good start, is it?
0:01:25 > 0:01:27All these properties are being sold at auction.
0:01:27 > 0:01:29We'll find out who bought them and what they paid for them
0:01:29 > 0:01:31when they went under the hammer.
0:01:31 > 0:01:33Sold at 136, thank you.
0:01:47 > 0:01:51This is Knaresborough, near Harrogate in Yorkshire,
0:01:51 > 0:01:57and a beautiful spot it is too, with vistas and history galore.
0:01:57 > 0:01:58There's a castle dating back to 1100,
0:01:58 > 0:02:01this wonderful viaduct across the River Nidd,
0:02:01 > 0:02:04and surrounding countryside to die for.
0:02:04 > 0:02:08Oh, and don't forget - in June, a bed race through the centre of town.
0:02:10 > 0:02:13Don't be fooled into thinking Knaresborough
0:02:13 > 0:02:16is a sleepy little Yorkshire town.
0:02:16 > 0:02:19It very much mixes the old with the modern.
0:02:19 > 0:02:22With good rail and road links to Harrogate and beyond,
0:02:22 > 0:02:24it's a thriving, busy place.
0:02:24 > 0:02:27I LOVE high streets like this.
0:02:27 > 0:02:30A real hotch-potch of shops selling everything and anything.
0:02:30 > 0:02:34And without the kind of chains that you see in so many a high street these days.
0:02:34 > 0:02:38It probably hasn't changed much, in fact, in the last 100 years, possibly longer.
0:02:38 > 0:02:42For instance, the property I'm here to see dates back to 1720
0:02:42 > 0:02:43and it's listed, no less.
0:02:43 > 0:02:45It's a former hairdresser's with a flat above,
0:02:45 > 0:02:48had a guide price of 120 grand.
0:02:48 > 0:02:50Let's take a look.
0:02:50 > 0:02:54So, good location which is a start.
0:02:54 > 0:02:58And in terms of a commercial unit, a reasonable amount of floor space.
0:02:58 > 0:03:01Now, as you can see, it's laid out as a hairdresser's.
0:03:01 > 0:03:04A bit dated and possibly not up to modern standards,
0:03:04 > 0:03:07but a bit of investigation has revealed that it didn't actually
0:03:07 > 0:03:10close down for lack of trade, but more because the owner
0:03:10 > 0:03:13or the previous owner had decided just to retire.
0:03:13 > 0:03:16So, you do know that there is demand for this kind of thing here, which is great.
0:03:16 > 0:03:18The property itself - it's intriguing already.
0:03:18 > 0:03:20You've got this lower area here.
0:03:20 > 0:03:23Up these little steps to this second area here.
0:03:23 > 0:03:27Stairs down to the basement. That all looks dark and dingy there.
0:03:27 > 0:03:31Obviously, some of these units and fitments, very old-fashioned.
0:03:31 > 0:03:35But as a starting point, intriguing, as I said, and quite interesting.
0:03:35 > 0:03:38Yes, if you were looking to run it as a hairdresser's, then,
0:03:38 > 0:03:42with a bit of updating here and there, it's just about ready to go!
0:03:42 > 0:03:44# I'm going to wash that man right outta my hair
0:03:44 > 0:03:48# I'm going to wash that man right outta my hair
0:03:48 > 0:03:51# And send him on his way. #
0:03:51 > 0:03:56There's a kitchen area at the back that might need a bit more work, but all-in-all, it's promising.
0:03:56 > 0:03:58Let's hope that the accommodation above,
0:03:58 > 0:04:03with its separate access at the rear of the building, is just as good.
0:04:03 > 0:04:04# I'm gonna wash that man... #
0:04:04 > 0:04:06So, what of the flat?
0:04:06 > 0:04:09Well, not a very good start, I'm afraid.
0:04:09 > 0:04:14It's a very narrow staircase leading up to it, and THEN, it gets worse!
0:04:14 > 0:04:18Look at this. There should be a banister here to stop people
0:04:18 > 0:04:21or children, especially, falling down there.
0:04:21 > 0:04:26Really, it's got to be a reasonable height to stop you toppling over it.
0:04:26 > 0:04:29But, more stairs up to more rooms and more rooms round the back,
0:04:29 > 0:04:31but I'm really interested in this one at the front.
0:04:31 > 0:04:35It's a good-size space. I'd like to see some original features.
0:04:35 > 0:04:38It would be great to see a really old fireplace.
0:04:38 > 0:04:40Maybe, behind there, there is one.
0:04:40 > 0:04:42But that aside, it's a nice, light room,
0:04:42 > 0:04:49partly because of this BEAUTIFUL bowed window at the front. Absolutely fantastic.
0:04:49 > 0:04:52- I mean, the negatives of that are... - HE SIGHS DEEPLY
0:04:52 > 0:04:55It's going to cost a fortune to get one like that to replace it,
0:04:55 > 0:04:57and being listed, you're probably not going to be able
0:04:57 > 0:05:00to put double glazing or something else in its place.
0:05:00 > 0:05:04So, restoration required, and you may even need toughened glass
0:05:04 > 0:05:09in the bottom, as it is a bit of a danger. But as a feature, I love it!
0:05:09 > 0:05:12Charm and period often do come at a cost.
0:05:12 > 0:05:16Not only can features like this be more expensive to repair,
0:05:16 > 0:05:18but you're limited to what you can do with them.
0:05:18 > 0:05:21But I'd rather live with those limitations any day.
0:05:21 > 0:05:25If you like quirkiness, then this little flat is certainly
0:05:25 > 0:05:27going to appeal to you.
0:05:27 > 0:05:31Little tiny room, storage room if you like. Your bathroom is there.
0:05:31 > 0:05:34A few issues with head height
0:05:34 > 0:05:36as you enter into the kitchen.
0:05:36 > 0:05:39But suddenly, wow, look at this!
0:05:39 > 0:05:41As a room, it's a bit higgledy-piggledy.
0:05:41 > 0:05:45Some nice cupboards, but straight away I'm drawn to this floor.
0:05:45 > 0:05:48How fantastic is this? Look at these floorboards.
0:05:48 > 0:05:49Absolutely beautiful!
0:05:49 > 0:05:53Probably want to sand them off a little bit, but I wonder if the rest
0:05:53 > 0:05:56of the flat has floorboards like this, because when it comes to doing
0:05:56 > 0:05:59the renovation, there's exciting things to potentially find.
0:05:59 > 0:06:02What there is to find, is that on the second floor,
0:06:02 > 0:06:06there are two bedrooms, both rather quirky in shape and size,
0:06:06 > 0:06:09but with the old fireplaces.
0:06:10 > 0:06:13Then there's a small box room.
0:06:13 > 0:06:17There's even the added bonus of an attic room on the top floor.
0:06:17 > 0:06:19As if that wasn't enough,
0:06:19 > 0:06:22there's a big bonus at the back of the property,
0:06:22 > 0:06:25with both a garage and allocated parking for three vehicles.
0:06:25 > 0:06:28But, rather worryingly, I've discovered some
0:06:28 > 0:06:31signs of structural problems around the basement area,
0:06:31 > 0:06:33which will definitely need to be looked at.
0:06:33 > 0:06:37What does a local property expert make of this huge lot
0:06:37 > 0:06:40guided at £120,000?
0:06:40 > 0:06:42Great thing about the ground floor
0:06:42 > 0:06:44is you could use it
0:06:44 > 0:06:46for a multitude of uses.
0:06:46 > 0:06:49You've got a mixture of uses up and down the high street,
0:06:49 > 0:06:51from cafes to bistros,
0:06:51 > 0:06:54individual boutiquey shops.
0:06:54 > 0:06:57Whatever your wishes, it can be done.
0:06:57 > 0:07:00The flat here needs a degree of modernisation,
0:07:00 > 0:07:04but you're working with some beautiful period features
0:07:04 > 0:07:06and you can modernise to your own taste.
0:07:06 > 0:07:10It might have a lot going for it but is it a good investment?
0:07:11 > 0:07:13Let's start with the flat.
0:07:13 > 0:07:16I think the apartment, fully modernised,
0:07:16 > 0:07:20with parking at the back for at least one vehicle, two if you can spare,
0:07:20 > 0:07:22you should be looking at something
0:07:22 > 0:07:25in the region of £160,000 in today's market.
0:07:25 > 0:07:28And the retail unit?
0:07:28 > 0:07:31If you looked at
0:07:31 > 0:07:34its current rateable value of being around and about
0:07:34 > 0:07:37£8-8,500 per annum,
0:07:37 > 0:07:40its open market value currently
0:07:40 > 0:07:44would be somewhere around and about £60-£65,000.
0:07:44 > 0:07:49Altogether the value of the whole building could be in the region
0:07:49 > 0:07:52of £225-£230,000.
0:07:52 > 0:07:54Very encouraging.
0:07:55 > 0:08:00I love lots like this with plenty of options for commercial space
0:08:00 > 0:08:03and potential income from the flat,
0:08:03 > 0:08:05or that would be a lovely place to live.
0:08:05 > 0:08:07Work to be done, yes,
0:08:07 > 0:08:11but who wouldn't want to set up a business in a place like this?
0:08:11 > 0:08:14Let's see who agreed with me when it went under the hammer.
0:08:17 > 0:08:19We go to Knaresborough, now
0:08:19 > 0:08:21to a shop and maisonette.
0:08:21 > 0:08:23Start me at 100.
0:08:23 > 0:08:25£100,000 anybody bidding?
0:08:25 > 0:08:28At £100,000, are you saying yes?
0:08:28 > 0:08:30100. At 100, only bid.
0:08:30 > 0:08:33At £100,000 I'm bid. I'll take 5.
0:08:33 > 0:08:36At 100,500, 110...
0:08:36 > 0:08:38Are you bidding now? 110,
0:08:38 > 0:08:4015, will you, at 110, 115, may I?
0:08:40 > 0:08:43115, take 2, if you will,
0:08:43 > 0:08:45117, 117 bid,
0:08:45 > 0:08:49will you fill him up, sir? 120, at 120 bid.
0:08:49 > 0:08:50At 120 and 1 anywhere?
0:08:50 > 0:08:55At £120,000, it's for nothing. At £120,000, for the first time.
0:08:55 > 0:08:57At £120,000, second time,
0:08:57 > 0:09:00sure, sure, sure...
0:09:00 > 0:09:03Property is yours, sir, at £120,000.
0:09:03 > 0:09:06Bang on the guide price of £120,000.
0:09:06 > 0:09:09That successful bid was placed by West Yorkshire-based
0:09:09 > 0:09:10Peter and Shirley.
0:09:10 > 0:09:12Peter is a car tradesman
0:09:12 > 0:09:15while Shirley is a qualified beautician.
0:09:15 > 0:09:19I was intrigued to hear their plans for the building.
0:09:19 > 0:09:22- Peter, Shirley, lovely to meet you both.- Pleased to meet you.
0:09:22 > 0:09:25- Congratulations.- Thank you. - What a quirky little property.
0:09:25 > 0:09:27It is. Very quirky.
0:09:27 > 0:09:29I love it. It's wonderful.
0:09:29 > 0:09:31What were you looking for, specifically?
0:09:31 > 0:09:34Mainly a property that would give us a residence,
0:09:34 > 0:09:38but this came up with a shop to include a hairdressing shop
0:09:38 > 0:09:43for my daughter. It was a good price so we went for it.
0:09:43 > 0:09:46Tell me about your daughter, what she does and what she's been doing so far?
0:09:46 > 0:09:51She's taken her college exams doing hairdressing,
0:09:51 > 0:09:54and now she's qualified so obviously
0:09:54 > 0:09:57she'd like to have her own shop to do hairdressing in
0:09:57 > 0:09:58and it's perfect for her.
0:09:58 > 0:10:01This will be her own shop?
0:10:01 > 0:10:02- Mmm.- Wow!- Yeah, wow!
0:10:02 > 0:10:06What a fantastic thing to do.
0:10:08 > 0:10:12With support like that, what more could Sarah need as she
0:10:12 > 0:10:16starts her very first hairdressing salon at just 21 years old?
0:10:16 > 0:10:19# When you begin to smile
0:10:19 > 0:10:21# You change my style
0:10:21 > 0:10:24# My Sarah... #
0:10:24 > 0:10:27But before she can start snipping,
0:10:27 > 0:10:29there's a lot of work to do here.
0:10:29 > 0:10:31Let's start with the shop downstairs for a start.
0:10:31 > 0:10:35- What are you going to do to it? - The first priority is the shop,
0:10:35 > 0:10:37to get it up and running,
0:10:37 > 0:10:40hopefully within six to eight weeks,
0:10:40 > 0:10:42before if we can do it,
0:10:42 > 0:10:45and it's going to be stripped out
0:10:45 > 0:10:48- and then refurbished. - What about the budget for the work?
0:10:48 > 0:10:51It's coming in between 5 to 10,000.
0:10:51 > 0:10:54- Is that including the new fixtures and fittings?- Uh-huh.- OK.
0:10:54 > 0:10:56Let's move on to the flat.
0:10:56 > 0:10:59Obviously, it's wonderfully quirky
0:10:59 > 0:11:01but when it comes to restoring those kinds of properties,
0:11:01 > 0:11:05there are often hidden things, aren't there?
0:11:05 > 0:11:07- Tell me what you're planning to do to it.- Get it all completely
0:11:07 > 0:11:10stripped out and replastered, so it's a new finish.
0:11:10 > 0:11:14Properly central heating as well, radiators. There's no heating there.
0:11:14 > 0:11:17What about the budget for the works in here?
0:11:17 > 0:11:20Could be anything between 10 to 30,000,
0:11:20 > 0:11:22depending on how far you take it.
0:11:23 > 0:11:27As well as the plans for the flat and shop, there's the basement.
0:11:27 > 0:11:29The basement is probably
0:11:29 > 0:11:33the last thing we do, because it's very untidy down there.
0:11:33 > 0:11:36Some structural work needs doing down there. Wants new windows.
0:11:36 > 0:11:40There's the possibility you could make it a self-contained flat.
0:11:40 > 0:11:42It goes the full length of the shop.
0:11:42 > 0:11:44There's quite a lot of room down there,
0:11:44 > 0:11:47but there's a lot of work to do as well.
0:11:47 > 0:11:50With those structural issues, they might find they need
0:11:50 > 0:11:52to look at the basement sooner rather than later,
0:11:52 > 0:11:54but at least they're aware of them.
0:11:54 > 0:11:59Sarah will eventually move into the flat with her young son, Kai,
0:11:59 > 0:12:02and her boyfriend. So along with the salon,
0:12:02 > 0:12:05this is a big step for her just fresh out of college.
0:12:05 > 0:12:07How does she feel about it?
0:12:09 > 0:12:14- So, Sarah, this is going to be your salon.- Yeah, very exciting!
0:12:14 > 0:12:17Tell me a little bit about your experience, where you're at now
0:12:17 > 0:12:19and what you're going to do.
0:12:19 > 0:12:23Well, I've got experience in the hairdressing and beauty therapy.
0:12:23 > 0:12:28At the moment, we're focusing on the hairdressing and hopefully,
0:12:28 > 0:12:32we'll be expanding into some beauty treatments and different things.
0:12:32 > 0:12:35- So, you've worked in a salon before? - I have worked in a salon, yes.
0:12:35 > 0:12:37- But not run one?- No, no!
0:12:37 > 0:12:41- How do you feel about that? - Scary!
0:12:41 > 0:12:42Yeah.
0:12:43 > 0:12:45No wonder she's scared, however,
0:12:45 > 0:12:50Sarah's going to build up the business gradually, with herself as the only stylist,
0:12:50 > 0:12:53another girl doing nails, and of course,
0:12:53 > 0:12:55her supportive mum as beautician.
0:12:55 > 0:12:57So, what about the flat, what do you think of that?
0:12:57 > 0:13:00I really like the flat. It needs a bit of work,
0:13:00 > 0:13:02but it's really nice, nice feel to it.
0:13:02 > 0:13:05Congratulations, good luck and we look forward to seeing a stream
0:13:05 > 0:13:08- of customers here in the not-too- distant future.- Thank you.
0:13:08 > 0:13:11Exciting times for Sarah,
0:13:11 > 0:13:15and of course Shirley and Peter, as well.
0:13:15 > 0:13:17Lots of work to be done
0:13:17 > 0:13:19and I know that the basement is low on the list of priorities,
0:13:19 > 0:13:23but I think they need to address potential structural things there
0:13:23 > 0:13:27before they plough on with the rest of the refurbishment.
0:13:27 > 0:13:30Still, it'll be really exciting to see what happens to the flat
0:13:30 > 0:13:33and the hair salon in the future.
0:13:33 > 0:13:35You can find out later in the show.
0:13:40 > 0:13:44This is Newthorpe, to the east of Eastwood in Nottinghamshire.
0:13:44 > 0:13:48Eastwood is the birthplace of novelist DH Lawrence,
0:13:48 > 0:13:53so will today's property be a modern classic or something of a write off?
0:13:55 > 0:13:58I am here in Newthorpe
0:13:58 > 0:14:00to see a traditional two-bedroom terrace.
0:14:00 > 0:14:06It was up for auction at a guide price of £48,000.
0:14:06 > 0:14:09I've checked and found out that the exact same house
0:14:09 > 0:14:13sold for £70,000 and that was in 2005.
0:14:13 > 0:14:17So, it just goes to show you how the property market round here
0:14:17 > 0:14:20really has been affected by the recent crash,
0:14:20 > 0:14:23but even today, there may still be money to be made.
0:14:23 > 0:14:27I'm going to go inside and check it out.
0:14:29 > 0:14:33Only people with long legs need apply for this property.
0:14:33 > 0:14:35Hup!
0:14:35 > 0:14:38So that's what you have to do just to get in.
0:14:38 > 0:14:41So a little bit of a step needs to be thought about, there.
0:14:41 > 0:14:44On the upside, you've got a good-sized living room.
0:14:44 > 0:14:48It's incredibly dated, you can see it's untouched -
0:14:48 > 0:14:50no central heating,
0:14:50 > 0:14:52no luxury comforts at all.
0:14:52 > 0:14:53You have got double glazing here,
0:14:53 > 0:14:56which I suppose is a bonus,
0:14:56 > 0:14:58but it all just needs decorating.
0:14:58 > 0:15:00You've got to think long and hard
0:15:00 > 0:15:02about how you'll turn this place around.
0:15:02 > 0:15:04It is not a bad-sized kitchen.
0:15:04 > 0:15:08This is the sort of house that will really scrub up well.
0:15:08 > 0:15:11Once decorated, it could look amazing.
0:15:11 > 0:15:16Something that's worrying me - look at this. Tell-tale signs of damp.
0:15:16 > 0:15:19Look. It's just literally flicking off the walls.
0:15:19 > 0:15:22I'd definitely recommend getting a survey done there.
0:15:22 > 0:15:26You've got nice big windows to the garden. The back door there.
0:15:26 > 0:15:31- And... - SHE LAUGHS - ..right I'm going to need a hoist and some climbing gear.
0:15:31 > 0:15:36And that's because these stairs are so incredibly steep.
0:15:36 > 0:15:37I've only got a size 4 foot.
0:15:37 > 0:15:40Look at my foot on the tread.
0:15:40 > 0:15:42They are steep, but also lovely and wide,
0:15:42 > 0:15:44which, of course, I really like.
0:15:44 > 0:15:48# I'll build a stairway to Heaven
0:15:48 > 0:15:51# Cos Heaven is where you are... #
0:15:52 > 0:15:58OK, so, it's not heavenly quite yet, but you've got to start somewhere.
0:15:58 > 0:15:59There are two good-sized bedrooms
0:15:59 > 0:16:03and the bathroom, which could do with some divine intervention.
0:16:03 > 0:16:06But holy-moly, what have we here?
0:16:08 > 0:16:10Now, take a look at this. The floorboards here
0:16:10 > 0:16:13have lots of little holes
0:16:13 > 0:16:18and it's the result of wood-boring beetles, commonly known as woodworm.
0:16:18 > 0:16:22There they are, munching their way through all your woodwork.
0:16:22 > 0:16:24Now the beetles may no longer be active,
0:16:24 > 0:16:27but, if they are, you need to get this house treated.
0:16:27 > 0:16:31Usually, you can just brush or spray on a chemical pesticide.
0:16:31 > 0:16:32Otherwise, I'm afraid to say,
0:16:32 > 0:16:35this property might eventually just crumble away.
0:16:35 > 0:16:42# A worm's life can be easy... #
0:16:42 > 0:16:45If you want to make life tough for woodworm,
0:16:45 > 0:16:47you can treat small areas yourself.
0:16:47 > 0:16:51But if the woodworm is widespread, best to call in the professionals,
0:16:51 > 0:16:54which could cost you the best part of £1,000.
0:16:54 > 0:16:58But it's really not something you can ignore, that's for sure.
0:16:58 > 0:17:00Out the back, you have this lovely, long garden.
0:17:00 > 0:17:03It certainly needs a tidy up and a bit of a mow,
0:17:03 > 0:17:06and of course it needs a fence to divide it
0:17:06 > 0:17:11from the neighbour, but it's always nice to have your own outside space.
0:17:11 > 0:17:13One problem.
0:17:13 > 0:17:15This was raised in the legal pack.
0:17:15 > 0:17:20This house actually goes over the shared-access passageway,
0:17:20 > 0:17:23which is here. This is called a flying freehold.
0:17:23 > 0:17:26Basically, part of your property flies over the land
0:17:26 > 0:17:28that doesn't entirely belong to you.
0:17:28 > 0:17:30So not a big issue you'd think,
0:17:30 > 0:17:33but some mortgage companies just don't like it
0:17:33 > 0:17:36and often won't lend in such situations.
0:17:38 > 0:17:42But if you shop around, you should be able to find a lender.
0:17:42 > 0:17:45If you are in any doubt about a flying freehold,
0:17:45 > 0:17:48speak to a solicitor and they should keep you right.
0:17:50 > 0:17:53The property and its flying freehold went to auction
0:17:53 > 0:17:56with a guide price of 48,000.
0:17:56 > 0:18:01We asked along a local estate agent to give us his thoughts.
0:18:01 > 0:18:03The property is in need of complete modernisation.
0:18:03 > 0:18:07It needs a new heating system, new kitchen, new bathroom,
0:18:07 > 0:18:09it needs a rewire.
0:18:09 > 0:18:12It needs a damp course. So it needs completely doing.
0:18:14 > 0:18:18Once done up, what kind of rent might you charge for the property?
0:18:20 > 0:18:22I think the rental you can achieve is £450 per month.
0:18:26 > 0:18:29And, if the purchaser wanted to sell it on?
0:18:30 > 0:18:32When the property's all done up, it could sell
0:18:32 > 0:18:35for in the region of 75-80,000.
0:18:37 > 0:18:40Well, this house isn't without its problems.
0:18:40 > 0:18:42It needs updating, that's for sure.
0:18:42 > 0:18:46It needs central heating and that woodworm needs sorting.
0:18:46 > 0:18:48But, if the new owner is careful with the budget,
0:18:48 > 0:18:52there might be a small amount of profit in this property.
0:18:52 > 0:18:56So who spotted the potential? Let's go to auction and find out.
0:18:58 > 0:18:59Lot 75.
0:18:59 > 0:19:01A two-bedroom terraced house.
0:19:01 > 0:19:04Needs some upgrading and improvement.
0:19:04 > 0:19:07What will I say for this one?
0:19:07 > 0:19:0844,000? Yep.
0:19:08 > 0:19:1144,000 here, thank you.
0:19:11 > 0:19:13At £44,000. 44. 45 I need.
0:19:13 > 0:19:1745 in front of me. 46 on the left.
0:19:17 > 0:19:1946. 47.
0:19:19 > 0:19:2147. 48.
0:19:21 > 0:19:2448,000, 49, sir, 49.
0:19:24 > 0:19:26At 49. At 50.
0:19:26 > 0:19:30It's in the market, we're selling. The bid is 49,000. 50, quickly?
0:19:30 > 0:19:33At 49,000 it goes.
0:19:33 > 0:19:36At 49,000 for the first time.
0:19:36 > 0:19:39At 49 for the second time. 500.
0:19:39 > 0:19:42For 50,000.
0:19:42 > 0:19:4350½.
0:19:43 > 0:19:4651. And a half. 52.
0:19:46 > 0:19:48And a half. 53?
0:19:48 > 0:19:5053. And a half.
0:19:50 > 0:19:5254?
0:19:52 > 0:19:55No? At 54,000, then, once.
0:19:55 > 0:19:57Twice. Third time.
0:19:57 > 0:20:00Down it goes at 54,000. Thank you.
0:20:02 > 0:20:06That successful bid of 54,000 came from local lad Paul,
0:20:06 > 0:20:09who trained as an accountant.
0:20:09 > 0:20:12# If you need someone to count on
0:20:12 > 0:20:15# Count me in... #
0:20:15 > 0:20:17Paul is taking a break from the world of accountancy
0:20:17 > 0:20:21and has his heart set on becoming a property wheeler-dealer.
0:20:21 > 0:20:24I met him back at the mid-terrace to find out more.
0:20:26 > 0:20:27- Paul, congratulations.- Thank you.
0:20:27 > 0:20:31What's the story behind you wanting to buy this terrace?
0:20:31 > 0:20:33I move every two years.
0:20:33 > 0:20:35Last year, I got made redundant, but it was just
0:20:35 > 0:20:39a break point to say I'm going to make a change.
0:20:39 > 0:20:42So I sold my last house, moved to France for three months.
0:20:42 > 0:20:44Thought I was going to move there to stay.
0:20:44 > 0:20:47And, erm, didn't like it, missed home, missed family,
0:20:47 > 0:20:50missed the UK, so I decided to come back
0:20:50 > 0:20:52and thought I'd get back into the property game again.
0:20:52 > 0:20:56Wow, so you're a busy man hopping all over the shop!
0:20:56 > 0:20:59- I like to keep moving. - Tell me a little about yourself.
0:20:59 > 0:21:03I'm an accountant by trade. I will put my hand to anything.
0:21:03 > 0:21:07- I'm the youngest of ten children. - Wow!- I am, yes.
0:21:07 > 0:21:12I think it was that that started me on the road to DIYing,
0:21:12 > 0:21:14because watching my dad around the house
0:21:14 > 0:21:18doing his thing around the house, electrics, windows, etc.
0:21:18 > 0:21:20It'll all be me.
0:21:20 > 0:21:22I don't have family, so it's just me doing the work
0:21:22 > 0:21:24and nobody to tell me to come home,
0:21:24 > 0:21:27so I'll be working here to probably midnight most nights.
0:21:29 > 0:21:33That's the spirit, Paul, no rest till the place is transformed.
0:21:33 > 0:21:36For a first go at an investment property,
0:21:36 > 0:21:37there's a lot to do here,
0:21:37 > 0:21:41but Paul's clearly up for the challenge
0:21:41 > 0:21:43and his accountancy background could prove useful.
0:21:45 > 0:21:49Tell me, what sort of budget have you got to do all the work?
0:21:49 > 0:21:52I budgeted about 6,500 for the renovations.
0:21:52 > 0:21:57It was at 4,500, but I had a 3,000 contingency,
0:21:57 > 0:21:59which I've now got down to 1,000.
0:21:59 > 0:22:01Because, having gone through the house,
0:22:01 > 0:22:05I've realised things are a little more expensive than I was anticipating.
0:22:05 > 0:22:08At the end of the day, I'm an accountant by trade,
0:22:08 > 0:22:11so I like my spreadsheets, I like to keep things in budget
0:22:11 > 0:22:15and it's almost like a game I've got to get within my budget.
0:22:15 > 0:22:20So, yeah, I've covered about 3,500 on the legal and selling costs.
0:22:20 > 0:22:24- The figures are in your head. You know what you're doing. - They're on paper.
0:22:24 > 0:22:27My only problem with this is £6,000 sounds a little bit
0:22:27 > 0:22:31- on the lean side to do all the work you need to do here.- It is.
0:22:31 > 0:22:34I mean, everything. Every single thing needs doing
0:22:34 > 0:22:36from the bottom to the top of the property.
0:22:36 > 0:22:39How do you think you're going to manage to do it on that?
0:22:39 > 0:22:41I'm being very cautious on the spending.
0:22:41 > 0:22:46I'm buying through auction websites in order to buy everything.
0:22:46 > 0:22:49Two minutes ago, I won a kitchen on the website.
0:22:49 > 0:22:51Hurray, fantastic!
0:22:51 > 0:22:53I think it's probably a year and a half old,
0:22:53 > 0:22:56but there's more than enough units than I need for the kitchen.
0:22:56 > 0:23:01I've purchased a sink, a bath and I'm trying to find a toilet.
0:23:01 > 0:23:04Excuse me, is this while you've been here talking to me today?!
0:23:04 > 0:23:07- You've been secretly bidding in the kitchen!- In the garden!
0:23:07 > 0:23:10That's fantastic news. You're being savvy with your spending.
0:23:10 > 0:23:11Absolutely. Yes.
0:23:16 > 0:23:18He may be winning at the online auctions,
0:23:18 > 0:23:21but when he lived in France, Paul lost out on a property purchase.
0:23:21 > 0:23:25However, in the process, he got lumbered with something
0:23:25 > 0:23:27that might help him on this side of the Channel.
0:23:27 > 0:23:32I bought a house that had a massive area of rendering
0:23:32 > 0:23:34on the exterior of the property.
0:23:34 > 0:23:38So I bought 90 litres of exterior paint, which,
0:23:38 > 0:23:41because the house sale fell through, I've got 90 litres of paint.
0:23:41 > 0:23:45I'll just keep buying houses with rendering, so I can use the paint.
0:23:45 > 0:23:49- Hopefully, it's a neutral colour. - It is neutral, yeah.
0:23:49 > 0:23:53Buttermilk everywhere. Every buttermilk house you see is mine.
0:23:53 > 0:23:57# Ol' buttermilk sky
0:23:57 > 0:24:00# Don't you fail me When I'm needing you most
0:24:00 > 0:24:04# Hang a moon Above her hitching post
0:24:04 > 0:24:06# And hitch me to the one I love... #
0:24:08 > 0:24:12Paul will get help with the central heating, electrics and woodworm.
0:24:12 > 0:24:14But he's going to have his hands pretty full
0:24:14 > 0:24:17keeping on top of all the other work that needs doing.
0:24:17 > 0:24:20Don't forget, this is what he hopes is just the first rung on the ladder
0:24:20 > 0:24:25to a lucrative new career in property development.
0:24:26 > 0:24:29So what sort of timescale are you giving yourself?
0:24:29 > 0:24:32I'm looking at... Originally, I was looking at a month.
0:24:32 > 0:24:37Then I took a reality check in terms of what needed doing,
0:24:37 > 0:24:42so I've pushed it out to two months, but as I'm working on it full-time,
0:24:42 > 0:24:44I think that's a reasonable time frame.
0:24:44 > 0:24:49The intention onwards from that is to sell this one.
0:24:49 > 0:24:54- I've put myself a plan together of 14 houses in five years.- Wow.
0:24:54 > 0:24:59- To make, hopefully, half a million on the properties.- So you've set the bar.
0:24:59 > 0:25:01- That's the bar. - You know exactly where you're going.
0:25:01 > 0:25:02Just hope this will work out.
0:25:02 > 0:25:05This is the first one, so this is the worrying one, really.
0:25:05 > 0:25:10It's been fantastic meeting you. I cannot wait to see this house in all its buttermilk glory.
0:25:10 > 0:25:13I'm very excited. Good luck with this project.
0:25:13 > 0:25:15- Thank you very much. - Thank you.
0:25:15 > 0:25:19Being an accountant, let's hope Paul is good with his figures
0:25:19 > 0:25:21because with a budget of just six and a half grand,
0:25:21 > 0:25:24he will have to watch every single penny.
0:25:24 > 0:25:28He's also giving himself quite a tight deadline.
0:25:28 > 0:25:31Just two months to get this place spick and span
0:25:31 > 0:25:34and like a buttermilk beauty.
0:25:34 > 0:25:36Will he do it on time and on budget?
0:25:36 > 0:25:39You can find out later in the show.
0:25:40 > 0:25:43Coming up, I have my eyes opened by the lay out
0:25:43 > 0:25:45of this end of terrace in Dover.
0:25:45 > 0:25:49Oh, wow! Well, that is pretty open plan.
0:25:50 > 0:25:54In Nottingham, has accountant Paul kept a close eye on his budget?
0:25:54 > 0:25:58I also have a folder full of every single receipt
0:25:58 > 0:26:00that I've spent on the house.
0:26:01 > 0:26:04But, first, work on this North Yorkshire listed building
0:26:04 > 0:26:07is going too slowly for Sarah's liking.
0:26:07 > 0:26:10It's still a work in progress with a lot to do.
0:26:13 > 0:26:17Back now to beautiful Knaresborough in North Yorkshire,
0:26:17 > 0:26:20where this former hairdresser's with cellar below
0:26:20 > 0:26:27and flat above was bought at auction for £120,000 by Peter and Shirley.
0:26:27 > 0:26:30Their plan was to spend around £10,000 refurbishing
0:26:30 > 0:26:34the hairdressing salon, so that daughter Sarah could take it on,
0:26:34 > 0:26:38and then turn their attention to the flat upstairs.
0:26:38 > 0:26:42The building is Grade II listed, with lovely original features.
0:26:42 > 0:26:46Peter and Shirley were going into this with their eyes open.
0:26:46 > 0:26:49So what about budget for the works in here?
0:26:49 > 0:26:51It could be anything between 10-30,000,
0:26:51 > 0:26:53depending on how far you take it.
0:26:55 > 0:26:58They planned to turn the salon around in six to eight weeks
0:26:58 > 0:27:02and gave themselves six months to sort out the flat.
0:27:02 > 0:27:05Almost five months after our first visit, we're back
0:27:05 > 0:27:07to see if it's cut and dried,
0:27:07 > 0:27:10or if it's been a series of bad hair days.
0:27:10 > 0:27:14# My parents taught me What life was all about
0:27:14 > 0:27:17# They said my friends were Just an unruly mob and I should
0:27:17 > 0:27:21# Get a haircut and get a real job
0:27:21 > 0:27:23# Get a haircut
0:27:23 > 0:27:25# Get a real job
0:27:25 > 0:27:27# Get it together
0:27:27 > 0:27:28# Like your big brother Bob
0:27:28 > 0:27:34# Why don't you get a haircut And get a real job? #
0:27:37 > 0:27:40Well, the hair salon is definitely looking the business
0:27:40 > 0:27:42and, with a little help from beautician mum Shirley,
0:27:42 > 0:27:45things are clipping along nicely.
0:27:46 > 0:27:47It's gone to plan.
0:27:47 > 0:27:50We designed it and I think we'll always progress
0:27:50 > 0:27:54and do some changes with it, but we're happy with it at the moment.
0:27:54 > 0:27:57The salon was up and running pretty much on time
0:27:57 > 0:28:00and at the top end of their £5-£10,000 budget.
0:28:02 > 0:28:05But there's still quite a bit to do before Sarah, her partner
0:28:05 > 0:28:09and son Kai can move in upstairs.
0:28:09 > 0:28:11We're going to move into the flat soon.
0:28:11 > 0:28:15It's still a work in progress with a lot to do.
0:28:16 > 0:28:18So why the delay?
0:28:18 > 0:28:21Well, the building now benefits from central heating throughout,
0:28:21 > 0:28:24but, just as I'd thought, before he could do anything,
0:28:24 > 0:28:30Peter had to see to those structural issues in the cellar.
0:28:30 > 0:28:33The biggest problem we had in when we first acquired the property
0:28:33 > 0:28:36was the cellar. Structural problems down there.
0:28:37 > 0:28:39There was a window that was falling out.
0:28:39 > 0:28:43Lintels, we had to put five lintels in, re-plastering, knocking out.
0:28:43 > 0:28:45That was the first priority, to make it safe.
0:28:47 > 0:28:52Yes. Always make it safe where you could end up with a pile of rubble.
0:28:52 > 0:28:54Upstairs, the flat has been updated
0:28:54 > 0:28:58and, while I'm sad to see the original floorboards covered with laminate,
0:28:58 > 0:29:02I certainly don't remember a staircase in the kitchen last time.
0:29:02 > 0:29:04Turns out that in pulling out the old kitchen,
0:29:04 > 0:29:09they discovered access to a whole room nobody knew anything about.
0:29:10 > 0:29:12# One way or another
0:29:12 > 0:29:14# I'm gonna find ya
0:29:14 > 0:29:17# I'm gonna get ya Get ya, get ya... #
0:29:17 > 0:29:20Previously, there'd been a staircase up here.
0:29:20 > 0:29:25We opened it up, got a plasterer in, re-plastered it, put a new floor in,
0:29:25 > 0:29:29had it rewired and it's turned out as an extra room and it's great.
0:29:31 > 0:29:33Oh I do love a hidden room!
0:29:33 > 0:29:37What a fantastic find. They've still got to look into replacing the window
0:29:37 > 0:29:40in the living room and, because the building is Grade II listed,
0:29:40 > 0:29:42that's not going to come cheap.
0:29:42 > 0:29:45But when it's finished, this will be a lovely room.
0:29:47 > 0:29:51# All I want is a room with a view
0:29:51 > 0:29:54# Oh, oh, oh... #
0:29:54 > 0:29:57The bedrooms have been spruced up
0:29:57 > 0:30:01and the box room now makes a perfect home for the pet rabbit.
0:30:01 > 0:30:04The other big change here is that the attic space
0:30:04 > 0:30:08has been turned into more useful accommodation.
0:30:08 > 0:30:14This was the attic bedroom and it was completely run down, virtually derelict.
0:30:14 > 0:30:17And, as you can see, it's made a nice en-suite bedroom
0:30:17 > 0:30:20and quite a large room, really.
0:30:20 > 0:30:22So we're really pleased with it.
0:30:24 > 0:30:29So far, Peter and Shirley have spent £13,500 on the flat
0:30:29 > 0:30:32on top of £10,000 on the salon.
0:30:32 > 0:30:34They reckon it could take another £15,000
0:30:34 > 0:30:38and a further six months to get everything just right.
0:30:38 > 0:30:40If their final outlay on the renovation
0:30:40 > 0:30:44does come in at 38,500, they will be on budget.
0:30:44 > 0:30:47Their total spend, including the purchase price,
0:30:47 > 0:30:50will be 158,500.
0:30:50 > 0:30:53We asked along two local estate agents
0:30:53 > 0:30:55to see what they make of the place.
0:30:56 > 0:30:58The shop is now up and running.
0:30:58 > 0:31:01It's a nice conversion. Work still to do in the basement,
0:31:01 > 0:31:03but it should be a good commercial unit.
0:31:03 > 0:31:06I think the changes have been superb.
0:31:06 > 0:31:08It's still a work in progress, obviously,
0:31:08 > 0:31:12but we're heading in the right direction certainly.
0:31:12 > 0:31:16The plan from day one has been for Sarah to run the salon
0:31:16 > 0:31:19and live in the flat upstairs.
0:31:19 > 0:31:22But if they were to sell it on, the estate agents recommend
0:31:22 > 0:31:26selling the flat and shop separately to get the best return.
0:31:26 > 0:31:30With the value of the shop being somewhere between £85-95,000,
0:31:30 > 0:31:35the value of the flat being 150-160,
0:31:35 > 0:31:38you're looking at a far greater combined total
0:31:38 > 0:31:40than if you sold it as one.
0:31:40 > 0:31:44As a combined building, you're probably looking at
0:31:44 > 0:31:47a value of somewhere around 200,000.
0:31:47 > 0:31:49If you were going to market the shop,
0:31:49 > 0:31:54you'd look at a figure probably in the region of £75-80,000.
0:31:54 > 0:31:58The apartment would be somewhere in the region of £150,000.
0:31:58 > 0:32:01If you decided to sell them as a unit,
0:32:01 > 0:32:03you wouldn't realise the full potential
0:32:03 > 0:32:07and you're probably looking at figure in the region an £200,000.
0:32:08 > 0:32:09Interesting.
0:32:09 > 0:32:13Selling the flat and shop separately could generate a pre-tax profit
0:32:13 > 0:32:17of between £66,500 and £91,500,
0:32:17 > 0:32:23which really is a cut above the norm. What about renting them out?
0:32:23 > 0:32:27I think rental potential for the apartment would be
0:32:27 > 0:32:29around £600-650 per calendar month.
0:32:29 > 0:32:32You're probably looking at something in the order of about
0:32:32 > 0:32:34£750 per calendar month.
0:32:34 > 0:32:38For the shop unit, probably somewhere £7,500 to £8,000 a year.
0:32:38 > 0:32:40The shop you could rent out
0:32:40 > 0:32:43for something in the order of £8,500 to £9,000 per annum.
0:32:43 > 0:32:47Those rental valuations could mean
0:32:47 > 0:32:53a yield of between around 9½% and 11½%, which again is streets ahead.
0:32:53 > 0:32:57But this has always been one to keep in the family,
0:32:57 > 0:33:00so how have they enjoyed the whole process?
0:33:00 > 0:33:02We've all had our own little bits to do, own roles.
0:33:02 > 0:33:07I think Peter has done the majority of all the hard work.
0:33:07 > 0:33:08- Erm...- SARAH: Hm.
0:33:08 > 0:33:13We've all had a good input, haven't we? We've all worked really hard.
0:33:14 > 0:33:15Enjoyed it. Good.
0:33:15 > 0:33:17THEY LAUGH
0:33:22 > 0:33:25I'm in the far south-east of Britain, in Dover,
0:33:25 > 0:33:28fondly known as White Cliffs country and you can see why.
0:33:28 > 0:33:32It faces France across the narrowest part of the English Channel
0:33:32 > 0:33:36and, for years, it has been one of the busiest gateways to Britain.
0:33:36 > 0:33:39'And with its white cliffs, castle and seaside location,'
0:33:39 > 0:33:43Dover attracts its fair share of visitors.
0:33:44 > 0:33:50Being a busy working town, it's also a popular place to live.
0:33:50 > 0:33:52The house I'm here to see is a two-bedroom end-of-terrace,
0:33:52 > 0:33:55which is on a good bus route into town.
0:33:55 > 0:33:58There's a hospital nearby and where there's a hospital,
0:33:58 > 0:34:03there will always be doctors and nurses looking for accommodation.
0:34:03 > 0:34:05This could be the ideal property for them.
0:34:05 > 0:34:09It's a two-bed end-of-terrace with a guide price of 60-65,000 quid.
0:34:09 > 0:34:10Let's take a look.
0:34:13 > 0:34:15So what have we got?
0:34:15 > 0:34:20Oh, wow! That is pretty open plan, you have to say.
0:34:20 > 0:34:24- HE LAUGHS - But what is going on there, why put the staircase like that?
0:34:24 > 0:34:27I mean, that's just silly.
0:34:27 > 0:34:29If you're going to have a staircase like that, switch it round
0:34:29 > 0:34:33so it's against the edge, then you really can go for this open-plan feel.
0:34:33 > 0:34:36Um, but I don't know. I'm getting a feeling
0:34:36 > 0:34:39that maybe the standard of work on this property
0:34:39 > 0:34:42hasn't been as high as you might like.
0:34:42 > 0:34:47I don't know why, but you can judge by the floorboards and the edging.
0:34:47 > 0:34:50Much more serious, when I come back here,
0:34:50 > 0:34:52what's going on with the floor?
0:34:52 > 0:34:57It's definitely angled down to me here. That is a serious issue.
0:34:57 > 0:35:00I don't like this. Not a good start, is it?
0:35:00 > 0:35:04'Alarm bells are starting to ring.'
0:35:04 > 0:35:05This is all slightly scary.
0:35:05 > 0:35:08Clearly, the wall dividing the room has been knocked down.
0:35:08 > 0:35:12There's no RSJ across the ceiling and the wobbly floor suggests
0:35:12 > 0:35:15no attempt to level the old floorboards.
0:35:15 > 0:35:17So goodness knows what lurks under there.
0:35:17 > 0:35:20This really needs a structural engineer to check out what's
0:35:20 > 0:35:24going on and it's not just this room that needs looking at, either.
0:35:25 > 0:35:27Through to the kitchen.
0:35:27 > 0:35:31Not a bad-sized space with a decent view out to the garden.
0:35:31 > 0:35:33Er, could you make this work?
0:35:33 > 0:35:37Possibly, certainly the carcasses of the units with tidying up
0:35:37 > 0:35:41would be fine, but, again, it's difficult to describe,
0:35:41 > 0:35:43but the floors feel like they're not quite right
0:35:43 > 0:35:45and there's just that feeling you get.
0:35:45 > 0:35:47MUSIC: "Tubular Bells" by Mike Oldfield
0:35:47 > 0:35:49I really don't like this.
0:35:49 > 0:35:53Holes in the ceiling, uneven floors, oddly positioned stairs.
0:35:53 > 0:35:57Let's hope things improve elsewhere in the property.
0:35:57 > 0:36:02So, upstairs, two bedrooms, one at the front, one at the back.
0:36:02 > 0:36:04But then the lay out starts to get really unfortunate,
0:36:04 > 0:36:06because to access the only bathroom
0:36:06 > 0:36:09you have to come through this bedroom
0:36:09 > 0:36:11where the bathroom itself is.
0:36:11 > 0:36:14Down the steps. It looks to me as if somebody has started renovation work,
0:36:14 > 0:36:18but what they didn't think about doing was before you do any work,
0:36:18 > 0:36:23think about putting a corridor here to make it so you don't need to go through the bedroom to get here.
0:36:23 > 0:36:26They've started with some of the obvious stuff, like putting a new bath in,
0:36:26 > 0:36:28but haven't thought through the bigger picture.
0:36:28 > 0:36:33Another thing, here's the water-heater cylinder thing.
0:36:33 > 0:36:35I'd take that out, replace it with a combi boiler.
0:36:35 > 0:36:37You would get a whole extra load of space
0:36:37 > 0:36:40enough, certainly, for a shower cubicle.
0:36:40 > 0:36:41That's what you want start to do.
0:36:41 > 0:36:43So, really, whoever buys this,
0:36:43 > 0:36:46they've got to be starting from scratch,
0:36:46 > 0:36:48ripping out what's here and making sure the structure
0:36:48 > 0:36:50of the building is sound
0:36:50 > 0:36:53and starting to put it together again properly.
0:36:54 > 0:36:55# Save me... #
0:36:57 > 0:37:01Yes, this house needs someone to come and save it, but I don't think it's too late
0:37:01 > 0:37:04because there are some positives here.
0:37:04 > 0:37:07# Somebody save me... #
0:37:07 > 0:37:09The bedrooms are a good size.
0:37:09 > 0:37:12There's central heating and double glazing
0:37:12 > 0:37:14and the kitchen units aren't too bad either.
0:37:14 > 0:37:19I also think there's a really attractive garden to be found underneath all that undergrowth.
0:37:19 > 0:37:22But would it be worth taking a chance on this house,
0:37:22 > 0:37:24guided at 60-65,000?
0:37:25 > 0:37:28What does a local estate agent think?
0:37:28 > 0:37:30Nice little terraced house.
0:37:30 > 0:37:35It is desperately in need of some renovation and repairs.
0:37:35 > 0:37:40It does look as though someone has had a go doing some renovations.
0:37:40 > 0:37:43It's got a lot of potential for a nice little two-bedroom terraced house.
0:37:43 > 0:37:45There is a lot of work here,
0:37:45 > 0:37:49but the two-bed house was guided at just 60-65,000,
0:37:49 > 0:37:53so could it actually make healthy returns on the resale or rental markets?
0:37:53 > 0:37:55In valuing the property when it was renovated,
0:37:55 > 0:38:01I'd say you'd be marketing at somewhere between £110-115,000.
0:38:01 > 0:38:04Rents are relatively low in this part of the country,
0:38:04 > 0:38:08but we could easily achieve £495 per calendar month.
0:38:08 > 0:38:10So, provided the house is structurally sound,
0:38:10 > 0:38:13it could be a promising investment.
0:38:15 > 0:38:18Well, it's a nice enough house, but I do think it's going to require
0:38:18 > 0:38:21quite a lot of work to get it sorted out and I'm a bit concerned
0:38:21 > 0:38:26about what hidden horrors you might uncover once you start to do that.
0:38:26 > 0:38:30Buyer beware, I think. Let's see who bought it when it went under the hammer.
0:38:31 > 0:38:36Lot 138. Needs some improvement. It's got two bedrooms.
0:38:36 > 0:38:37Start me at 55, then.
0:38:37 > 0:38:4055. I should think so, too. 55 I'm on the way. At 55.
0:38:40 > 0:38:43And 58. 58. And 60.
0:38:43 > 0:38:45And 60. And 60.
0:38:45 > 0:38:47And two.
0:38:47 > 0:38:5062 I've got down in the room. 62. And 64?
0:38:50 > 0:38:5264? At 64.
0:38:52 > 0:38:5664 standing. And 66 in the front. And 8, it's against you.
0:38:56 > 0:39:0067 I'll take, if it helps anybody. At 67, it did.
0:39:00 > 0:39:0368, it's back with you again.
0:39:03 > 0:39:0568 and 9. 69. 70.
0:39:05 > 0:39:08At 70. 70 says yes.
0:39:08 > 0:39:1071 it's back with you, if you like.
0:39:10 > 0:39:12At 71. And 2.
0:39:12 > 0:39:1772. 72 I've got sitting down. 73, it's against you. 73.
0:39:17 > 0:39:2173,000. 73, it's with you. And 4?
0:39:21 > 0:39:2473½ I'll take. 74.
0:39:24 > 0:39:28With you at the back, 74 is there. 75?
0:39:28 > 0:39:32He's shaking his head. You might have it. At £74,000 for the first time.
0:39:32 > 0:39:34At £74,000 for the second.
0:39:34 > 0:39:38Third and final time, if you've all done. You've all had a fair chance.
0:39:38 > 0:39:40Well done, sir, it's yours at 74.
0:39:40 > 0:39:44For £74,000, the successful bidder was Tom,
0:39:44 > 0:39:47who lives 35 minutes away from Dover in Whitstable.
0:39:47 > 0:39:52So I was intrigued to know why he was buying a two-bed house in Dover
0:39:52 > 0:39:54'with more than its share of problems.'
0:39:54 > 0:39:58- Tom, lovely to meet you. - Nice to meet you.- Congratulations. - Thank you.
0:39:58 > 0:40:02- Tell me why you want to buy this place.- Basically, to add to my portfolio
0:40:02 > 0:40:03in respect of my pension.
0:40:03 > 0:40:04I retired earlier in the year
0:40:04 > 0:40:08- and I thought this would be a good venture.- So why property?
0:40:08 > 0:40:09I've experience of property.
0:40:09 > 0:40:13I've refurbished homes here and in France.
0:40:13 > 0:40:16I've been in the building-services industry for 37 years,
0:40:16 > 0:40:19So I'm aware of mainly commercial buildings
0:40:19 > 0:40:22- and I'm a consultant now in my spare time.- Right.
0:40:22 > 0:40:27- So what was it about this place particularly that you liked?- The price.- Just that?- Fundamentally.
0:40:27 > 0:40:30'Price is definitely key here as Tom had earmarked'
0:40:30 > 0:40:32a number of potential purchases at the auction.
0:40:32 > 0:40:36It was only this one that hit the mark for him.
0:40:36 > 0:40:38But, as usual, you only get what you pay for.
0:40:38 > 0:40:40This house isn't without its problems.
0:40:40 > 0:40:44But it sounds like he might have the experience to tackle them.
0:40:44 > 0:40:46Tell me what you will do with it.
0:40:46 > 0:40:48The staircase we've got here is pretty open plan
0:40:48 > 0:40:53and so I thought it would be a good idea to make it to the side of that room
0:40:53 > 0:40:55as opposed to sitting in the middle.
0:40:55 > 0:40:59I'm going to level the floor out and upstairs, in the bathroom,
0:40:59 > 0:41:01I'd like to maybe raise the floor and have a corridor upstairs.
0:41:01 > 0:41:04So you'd create a corridor.
0:41:04 > 0:41:07And moving the staircase will allow you to do that.
0:41:07 > 0:41:09That's what I'm thinking.
0:41:09 > 0:41:11What about the kitchen and bathroom?
0:41:11 > 0:41:16I've had already a problem in the kitchen insomuch as I was informed
0:41:16 > 0:41:21by someone that possibly structurally something needed to be dealt with, which I got on with.
0:41:21 > 0:41:23- Which was?- Putting some gallows brackets in
0:41:23 > 0:41:27to support a chimney breast that had been knocked out from below,
0:41:27 > 0:41:31without having been supported. I thought it might be prudent to get that sorted out.
0:41:31 > 0:41:36- All the bricks and everything? - They were sitting there so I dealt with that straight away.
0:41:38 > 0:41:43So Tom has already started to rescue this house from potential disaster.
0:41:43 > 0:41:47Let's hope there aren't more problems lurking unseen.
0:41:48 > 0:41:50- Who is doing the work? - Mainly myself.
0:41:50 > 0:41:52I'll call in specialists for areas where
0:41:52 > 0:41:56expertise regarding Gas Safe and electrical aspects,
0:41:56 > 0:41:58but I'll do most of the work myself.
0:41:58 > 0:42:04- What kind of budget have you got? - My budget is a minimum spend 5,800.
0:42:04 > 0:42:08- That's very specific. - Well, I've costed it out.
0:42:08 > 0:42:11I've been shopping for prices and I know where I'll buy materials,
0:42:11 > 0:42:14of which about £800 is for specialists,
0:42:14 > 0:42:16the other 5,000 is going to be for materials.
0:42:16 > 0:42:20On the downside, if I found something that was really dire,
0:42:20 > 0:42:24I'd budget in the region of 9,800, but that's as far as it's going.
0:42:24 > 0:42:27The property's not, in the market place, worth putting any more into it
0:42:27 > 0:42:29and I don't think it needs it.
0:42:29 > 0:42:33- What kind of timescale?- Originally, I was guessing three months.
0:42:33 > 0:42:37- Now I think more six months or more. - What's made you double it?
0:42:37 > 0:42:40Having investigated under the floor, I've got to make a decision.
0:42:40 > 0:42:44Do I raise the floor in certain areas to balance it,
0:42:44 > 0:42:46or do I cut it out and put concrete throughout?
0:42:46 > 0:42:47I'm trying to keep within the budget
0:42:47 > 0:42:51and at the same time do a really nice job, so when I walk away from it,
0:42:51 > 0:42:54the house is going to stand and be there for a long time.
0:42:54 > 0:42:56- Great. Congratulations. Good luck with it.- Thank you.
0:42:56 > 0:43:00- We look forward to coming back and seeing how you get on.- Super.
0:43:00 > 0:43:02# Save me Save me... #
0:43:02 > 0:43:07Well, with 37 years' experience, if anyone can save this house, Tom can.
0:43:07 > 0:43:09# Save me
0:43:09 > 0:43:11# Yeah Save me... #
0:43:11 > 0:43:16But as he's already discovered, this place has hidden problems.
0:43:16 > 0:43:20That floor that's not level, the chimney that wasn't supported.
0:43:20 > 0:43:22How many other things is he going to discover
0:43:22 > 0:43:27once he starts trying to get it back into its former glory?
0:43:27 > 0:43:29You can find out later in the show.
0:43:31 > 0:43:35Doing up a property can be time-consuming and expensive.
0:43:35 > 0:43:39So have our buyers managed to keep to their budgets and timescales?
0:43:39 > 0:43:40Let's find out.
0:43:41 > 0:43:43Back to Newthorpe in Nottinghamshire,
0:43:43 > 0:43:47where local man Paul bought this two-bed mid-terrace
0:43:47 > 0:43:49at auction for 54,000.
0:43:49 > 0:43:51His background is in accountancy.
0:43:51 > 0:43:55# If you need someone to count on
0:43:55 > 0:43:58# Count me in... #
0:43:58 > 0:44:02With the budget including all his costs and fees of 11,000,
0:44:02 > 0:44:04Paul planned to do most of the work himself
0:44:04 > 0:44:08and to make this renovation the first step on the ladder
0:44:08 > 0:44:10to a lucrative career in property development.
0:44:11 > 0:44:15I've put myself a plan together of 14 houses in five years.
0:44:15 > 0:44:19- Wow.- To make hopefully half a million on the properties.
0:44:19 > 0:44:23- You've set the bar. - Yeah, that's the bar. - You know exactly where you're going.
0:44:23 > 0:44:27Just hope this will work out. This is the first one, so this is the worrying one, really.
0:44:27 > 0:44:31Five and half months after our first visit,
0:44:31 > 0:44:34we're back to see if this accountant has excelled
0:44:34 > 0:44:38or failed at figuring out the formula for success here.
0:44:38 > 0:44:41# You can count on me
0:44:41 > 0:44:44# Like 1, 2, 3
0:44:44 > 0:44:47# I'll be there
0:44:47 > 0:44:49# And I know when I need it
0:44:49 > 0:44:52# I can count on you
0:44:52 > 0:44:55# Like 4, 3, 2
0:44:55 > 0:44:56# And you'll be there
0:44:57 > 0:44:59# Cos that's what friends
0:44:59 > 0:45:02# Are supposed to do Oh, yeah
0:45:02 > 0:45:05# Ooh, ooh, ooh, ooh-ooooh... #
0:45:05 > 0:45:07Well, it would seem Paul's hard work has paid dividends.
0:45:07 > 0:45:12Because the mid-terrace's affairs now look to be in pretty good order.
0:45:12 > 0:45:14# Oh, yeah Ooh-ooh.... #
0:45:14 > 0:45:18Since you were last here, I had a structural guy in
0:45:18 > 0:45:19to look at the damp situation,
0:45:19 > 0:45:23so that was one thing that had to be remedied.
0:45:23 > 0:45:27I was aware at the time that the whole house needed rewiring.
0:45:27 > 0:45:29It would also need re-plastering to get a good finish.
0:45:29 > 0:45:33So it's really had a full make-over top to bottom.
0:45:35 > 0:45:37Paul really has been watching the pennies,
0:45:37 > 0:45:42because he's managed to buy several items for the renovation through an auction website.
0:45:42 > 0:45:46Fire surround, bath, even the kitchen sink.
0:45:46 > 0:45:50# And it all ends up As stuff that you can buy #
0:45:54 > 0:45:56When I first bought the house,
0:45:56 > 0:46:00the kitchen didn't have any units in it at all.
0:46:00 > 0:46:04I think one cabinet here and one cabinet where the sink was.
0:46:04 > 0:46:07But I acquired this kitchen on an auction website.
0:46:07 > 0:46:12It was £400 for all the units, the sink, the double oven -
0:46:12 > 0:46:16just had to go and pick it up, basically.
0:46:16 > 0:46:19I did acquire a new induction hob, which was necessary.
0:46:19 > 0:46:21It's had a new gas boiler put in.
0:46:21 > 0:46:24It's a combination boiler. So yeah,
0:46:24 > 0:46:28I think it's a nice clean-lines kitchen for a new family.
0:46:30 > 0:46:32Upstairs, Paul has had the woodworm treated
0:46:32 > 0:46:35and the floorboards replaced for good measure.
0:46:35 > 0:46:37The bathroom lay out now works much better
0:46:37 > 0:46:40with the hot water tank removed. Out back,
0:46:40 > 0:46:45he still has to tackle the garden, but around the front it's very smart,
0:46:45 > 0:46:49with a fresh coat of - you guessed it - buttermilk paint.
0:46:49 > 0:46:52# Will you be mellow and bright tonight?
0:46:52 > 0:46:57# Buttermilk sky... #
0:46:57 > 0:47:00He's still got bucketloads of that paint left!
0:47:00 > 0:47:04I did ask him to put 15 coats on, but he said it doesn't need it(!)
0:47:04 > 0:47:05So I've still got the paint
0:47:05 > 0:47:09and I'll still be using it on another property, definitely.
0:47:09 > 0:47:12As he's an accountant,
0:47:12 > 0:47:16Paul must have had plenty of tools on hand to keep track of his budget.
0:47:16 > 0:47:19# We can work it out
0:47:19 > 0:47:22# We're gonna work it out, baby... #
0:47:22 > 0:47:26I had several spreadsheets for this house, yes.
0:47:26 > 0:47:28I also have a folder
0:47:28 > 0:47:31full of every single receipt that I've spent on the house.
0:47:31 > 0:47:34I even opened a separate bank account
0:47:34 > 0:47:39to make sure that I monitored every single penny spent on it.
0:47:41 > 0:47:46OK, time to spill the beans. What's the bottom line here?
0:47:46 > 0:47:49Remembering the original budget was 11,000,
0:47:49 > 0:47:52including legal fees and costs.
0:47:52 > 0:47:56My final figure is in terms of how much the whole process will cost,
0:47:56 > 0:48:01including legal fees, selling costs and the renovation,
0:48:01 > 0:48:02is coming in at about 15,000.
0:48:02 > 0:48:07The actual renovation was around 11,500.
0:48:08 > 0:48:12Paul's a few grand over budget and a few months over schedule,
0:48:12 > 0:48:14but he's not overly concerned.
0:48:14 > 0:48:17There was more to do here than he first thought
0:48:17 > 0:48:20and he had to take time off to look after his mother, who wasn't well.
0:48:20 > 0:48:24His total outlay, including the £54,000 purchase price,
0:48:24 > 0:48:26is around 69,000.
0:48:26 > 0:48:30Do two local estate agents think he spend his money wisely?
0:48:30 > 0:48:32With this property they've done a lovely job of it.
0:48:32 > 0:48:36They re-plastered, rewired, new kitchen and bathroom,
0:48:36 > 0:48:37new boiler, damp course.
0:48:37 > 0:48:42So they've done a very nice job and it's a very modern house.
0:48:42 > 0:48:44It's been done to a really good standard
0:48:44 > 0:48:47and I think would easily sale or let out.
0:48:47 > 0:48:50Paul's initial plan was to sell the property.
0:48:50 > 0:48:53But what might it fetch on the rental market?
0:48:54 > 0:48:56If I had to put it up for rent,
0:48:56 > 0:48:59I'd expect to achieve around £450 per calendar month.
0:48:59 > 0:49:02If I put this property on the market for rent,
0:49:02 > 0:49:05I'd put it up from £450-£475 per calendar month.
0:49:05 > 0:49:07That is really impressive.
0:49:07 > 0:49:11If I could achieve that, it would probably alter my thought process
0:49:11 > 0:49:13on what I physically do with the house.
0:49:13 > 0:49:16So that is... I'm really chuffed with that, really pleased with it.
0:49:16 > 0:49:20Those valuations would give a yield around the 8% mark,
0:49:20 > 0:49:24which is really pretty good.
0:49:24 > 0:49:27How does that compare with selling it instead?
0:49:27 > 0:49:31If I had to put it for sale, I'd put it up for £84,950.
0:49:31 > 0:49:35If I put this property on the market, I'd expect around £85,000.
0:49:35 > 0:49:40It works out from a profit perspective, absolutely.
0:49:40 > 0:49:43I should make about 15% profit if I sold it,
0:49:43 > 0:49:46so I'm quite... That's a good return for me.
0:49:48 > 0:49:53I'm not quite sure how he gets that figure, but he's the accountant.
0:49:53 > 0:49:57In my books, Paul could get a pre-tax profit of 16,000
0:49:57 > 0:50:00if he sells for £85,000.
0:50:00 > 0:50:04But how long before he makes that cool half a million he was aiming for?
0:50:04 > 0:50:07It was going to be five years. I don't think it'll be quite five years.
0:50:07 > 0:50:11You're always at the mercy of the housing market, but, we'll see.
0:50:11 > 0:50:14I'll get the Aston Martin eventually, so yeah!
0:50:18 > 0:50:19Back now to Dover,
0:50:19 > 0:50:22where this two-bed end-terrace sold at auction for 74,000.
0:50:23 > 0:50:28Inside, things weren't looking so bright with a wonky floor,
0:50:28 > 0:50:30a strangely positioned staircase and that old favourite,
0:50:30 > 0:50:34the bathroom reached only through the rear bedroom.
0:50:34 > 0:50:36Taking this one on was Tom,
0:50:36 > 0:50:39who has almost 40 years' experience in building maintenance.
0:50:39 > 0:50:43He likes everything worked out to the last detail.
0:50:44 > 0:50:49- What kind of budget have you got? - My budget is a minimum of 5,800.
0:50:49 > 0:50:50That's very specific.
0:50:50 > 0:50:54Well, I've costed it out. I've been shopping for the various prices.
0:50:54 > 0:50:56I know where I'll buy the materials,
0:50:56 > 0:50:58of which about £800 is for specialists.
0:50:58 > 0:51:01The other 5,000 is for materials.
0:51:03 > 0:51:06It seems Tom's very meticulous.
0:51:06 > 0:51:08He had a turnaround of six months for the job,
0:51:08 > 0:51:10but it was a year and a half later
0:51:10 > 0:51:13that we returned to see how he got on.
0:51:15 > 0:51:18# You're looking good You're looking good
0:51:18 > 0:51:20# You're looking good
0:51:20 > 0:51:22# To me
0:51:22 > 0:51:23# To me... #
0:51:23 > 0:51:28Well, no doubt about it now, moving the stairs has opened up
0:51:28 > 0:51:31this ground floor and made this a far brighter space.
0:51:31 > 0:51:35But, let's face it, shifting the stairs was never really in doubt.
0:51:35 > 0:51:38It was right in the middle of the room.
0:51:38 > 0:51:39It had no safety rails.
0:51:39 > 0:51:42Although it took a lot of structural engineering to make things safe,
0:51:42 > 0:51:45at the end of the day, I think the effect is better.
0:51:46 > 0:51:50It's definitely improved the flow on the ground floor
0:51:50 > 0:51:52where the kitchen is now easily reached.
0:51:52 > 0:51:54That's been given a spruce-up
0:51:54 > 0:51:57and although the units remain the same,
0:51:57 > 0:52:00there's a new cooker, hob and combi boiler.
0:52:00 > 0:52:03But those stairs were also a step in the right direction of creating
0:52:03 > 0:52:07a new landing, which Tom explains has given upstairs
0:52:07 > 0:52:08a new lease of life.
0:52:10 > 0:52:13Structurally, there used to be a doorway here
0:52:13 > 0:52:16and now, obviously, we've moved it to this position.
0:52:16 > 0:52:20You used to walk through this room here into the bathroom,
0:52:20 > 0:52:22but the bathroom entrance was here.
0:52:22 > 0:52:26So I've structurally built this into this position,
0:52:26 > 0:52:28which gives a nice throughput,
0:52:28 > 0:52:32and effectively makes a room in itself.
0:52:32 > 0:52:35In this area here, this cupboard used to come out to another foot.
0:52:35 > 0:52:37Effectively changed it around.
0:52:37 > 0:52:40That's going to be an airing cupboard with shelving
0:52:40 > 0:52:43and, overall, I'm actually quite happy with the end result.
0:52:43 > 0:52:46Tom has installed a new bathroom suite.
0:52:46 > 0:52:49While the rear bedroom is smaller,
0:52:49 > 0:52:51the front bedroom remains its original size
0:52:51 > 0:52:54with the same decoration and flooring throughout upstairs.
0:52:54 > 0:52:58Overall, this lay out is 100% more appealing.
0:52:59 > 0:53:00# Bend me, shape me
0:53:00 > 0:53:02# Anyway you want me
0:53:02 > 0:53:06# As long as you love me It's all right... #
0:53:06 > 0:53:09The whole house has had new wiring, new electrics
0:53:09 > 0:53:10and new plumbing.
0:53:10 > 0:53:13And, outside, the garden has been de-shrubbed
0:53:13 > 0:53:18and exterior walls given a fresh coat of paint.
0:53:18 > 0:53:19So is that it? Well, no,
0:53:19 > 0:53:23because there is still one big change to discuss.
0:53:23 > 0:53:26The largest job structurally to change the floor downstairs
0:53:26 > 0:53:31from being a wooden floor, which was built on a slope, being part of
0:53:31 > 0:53:37the nature of the road, and replacing it with concrete, which I did myself.
0:53:37 > 0:53:39As with everything else in the property, in fact,
0:53:39 > 0:53:41apart from the gas installation.
0:53:43 > 0:53:45Tom has a lot to be proud of here,
0:53:45 > 0:53:47but he's also been busy with other matters.
0:53:47 > 0:53:51He's been doing the school run for his seven-year-old daughter,
0:53:51 > 0:53:56writing a book and commuting between North Kent, where he lives, and Dover.
0:53:56 > 0:53:57With these commitments,
0:53:57 > 0:54:01he was only able to devote three to four hours a day on the project.
0:54:01 > 0:54:05No wonder the timescale overran from six months to 18.
0:54:05 > 0:54:09So I dread to ask how did his rather tight budget cope.
0:54:09 > 0:54:13My original budget was in the band of between 5-6K.
0:54:13 > 0:54:16Um, that was if I didn't have to change the boiler.
0:54:16 > 0:54:20But I made a choice to take the existing boiler out
0:54:20 > 0:54:22and put a combi boiler in in its place.
0:54:22 > 0:54:25It gave us more room in the bathroom,
0:54:25 > 0:54:27enabled me to have the doorway moved,
0:54:27 > 0:54:30and, effectively, make the plan better.
0:54:32 > 0:54:37That additional work has taken Tom's spend to £8,000
0:54:37 > 0:54:42and, with his £74,000 purchase price, his total outlay is now 82,000.
0:54:42 > 0:54:44The plan is now to let the house out
0:54:44 > 0:54:47and, hopefully, he won't have to wait long.
0:54:47 > 0:54:50So when it comes to describing his feelings about this project,
0:54:50 > 0:54:52what word come to mind?
0:54:52 > 0:54:54Pride? Satisfaction?
0:54:55 > 0:54:57Lonely, because I've been doing it on my own.
0:54:57 > 0:55:00Although I've got a lovely family, they steered well clear of this
0:55:00 > 0:55:02and I don't blame them.
0:55:02 > 0:55:06Let's hope potential buyers or renters don't stay away.
0:55:06 > 0:55:10To get an idea of how it would do, we asked two local estate agents
0:55:10 > 0:55:15to give us their thoughts on Tom's £82,000 investment.
0:55:15 > 0:55:19I think the owner has done a fantastic job to the property,
0:55:19 > 0:55:22been very sympathetic to it, made it very liveable
0:55:22 > 0:55:25and this has definitely come out nice.
0:55:26 > 0:55:30The finish is good, it's very tidy, very uncomplicated, very clean
0:55:30 > 0:55:32ready to go.
0:55:32 > 0:55:36Configuration has changed, but it's a better lay out now
0:55:36 > 0:55:39in that you can get to the bathroom off the landing.
0:55:39 > 0:55:42The only disadvantage is you've now got a double and single bedroom.
0:55:43 > 0:55:46What sort of rental income could Tom expect?
0:55:46 > 0:55:49I think the rental value of this currently
0:55:49 > 0:55:54is in the region of £475-£500 per calendar month.
0:55:54 > 0:55:58I can certainly achieve £500 per calendar month,
0:55:58 > 0:56:00possibly even more, more like 550 per calendar month.
0:56:00 > 0:56:02As far as I'm concerned, that is perfect
0:56:02 > 0:56:04for what I need to do.
0:56:07 > 0:56:11A rental income of between 475 and £550 could give Tom
0:56:11 > 0:56:15an annual rental yield of between 7% and 8%.
0:56:15 > 0:56:20So rental does look a good option. But if he should decide to sell,
0:56:20 > 0:56:24the estate agents value the place at between 90-100,000,
0:56:24 > 0:56:31giving Tom a possible pre-tax profit up of between £8,000 and £18,000.
0:56:31 > 0:56:34But Tom is already thinking of his next investment,
0:56:34 > 0:56:38although this property and its problems have made him
0:56:38 > 0:56:40a bit more cautious about his next move.
0:56:40 > 0:56:43I would find a property that didn't need so much doing to it
0:56:43 > 0:56:47and then, at the end of the day, it gives me more time with my family.
0:56:49 > 0:56:53We'll have another selection box of properties for you next time.
0:56:53 > 0:56:54So make sure you join us then
0:56:54 > 0:56:58- for more Homes Under The Hammer. Goodbye.- Goodbye.
0:57:18 > 0:57:22Subtitles by Red Bee Media Ltd