0:00:02 > 0:00:05Hello and welcome to the show. People buy property for all reasons.
0:00:05 > 0:00:09Sometimes they want to live there or they'll do it up and sell it.
0:00:09 > 0:00:13The main concern is getting value for money, but how do you do that?
0:00:13 > 0:00:17One way can be to buy your home under the hammer.
0:00:42 > 0:00:48- You need to do your homework if you buy at auction.- And then you could find a diamond in the rough.
0:00:48 > 0:00:54So here's a look at the potential moneyspinners that went under the hammer recently.
0:00:54 > 0:00:59We return to see the transformation at this Cornish cottage with accommodation on three floors.
0:01:01 > 0:01:03How odd!
0:01:04 > 0:01:09In Kent, this former care home with planning permission has tons of potential.
0:01:09 > 0:01:13There's so much room to play with. I love it.
0:01:14 > 0:01:21And this former sweet shop in Porthcawl, South Wales, with a flat above could be a real treat.
0:01:21 > 0:01:24Is it a sher-bet for an investment?
0:01:25 > 0:01:30All of these properties have been sold at auction and we'll find out who bought them and what they paid
0:01:30 > 0:01:33- when they went under the hammer. - Well, what a lot of property.
0:01:36 > 0:01:44'Time now to revisit Millbrook in Cornwall and a property I first saw in August, 2010.'
0:01:44 > 0:01:49Today I'm in Cornwall, home of pasties, Cornish cream teas,
0:01:49 > 0:01:54a beautiful coastline and home of one particular property.
0:01:54 > 0:01:57Three-storey, two-bedroomed house.
0:01:57 > 0:02:03Had a guide price of just 70,000 quid, in this cute little village. Let's take a look inside.
0:02:03 > 0:02:08'Not many windows, but at least they look fairly new, as does the guttering.
0:02:08 > 0:02:11'So that's promising.'
0:02:11 > 0:02:12OK.
0:02:12 > 0:02:17Polystyrene tiles greet you as you come through the front door, but a reasonably wide corridor.
0:02:17 > 0:02:24What's going on here? This is a glass-panelled, what looks to me like a stud partition wall.
0:02:24 > 0:02:29I'll have a look at the other side. You might be able to get rid of it.
0:02:29 > 0:02:34Stairs up to the bedrooms there and then through - it gets a bit cramped - to the kitchen.
0:02:34 > 0:02:40'This is a pleasant surprise. It looks like this kitchen has been only recently installed.
0:02:40 > 0:02:46'But it's only on one side of the kitchen and I'm in two minds about the space here.'
0:02:46 > 0:02:51I was going to say it's a bit small, but for the size of the property it's not bad.
0:02:51 > 0:02:55If you were a bit creative, you could make a nice little space,
0:02:55 > 0:02:58although relatively the ceiling does feel quite low.
0:02:58 > 0:03:02And then through to the front lounge.
0:03:05 > 0:03:07Oh, what?!
0:03:07 > 0:03:12Now, look. That ceiling is surprising to say the least.
0:03:12 > 0:03:18It would look fantastic in a country house, but in a little cottage? No, I think that needs to go.
0:03:18 > 0:03:23The other thing that really needs to go, as I said, is this wall here.
0:03:23 > 0:03:29Get rid of the glass and this stud partition, open up the whole thing to create a really nice-sized space.
0:03:29 > 0:03:34Actually this place has turned out a surprise. It's not that huge,
0:03:34 > 0:03:40but you've got the open fire, big living room and I haven't been upstairs yet. Looking good.
0:03:42 > 0:03:49'There's certainly potential here. There's so much wasted space the layout needs a good re-think.
0:03:49 > 0:03:53'I wonder if it gets any better upstairs?'
0:03:53 > 0:03:56Up onto the first floor and a massive bathroom.
0:03:56 > 0:03:59That's a really nice thing to have.
0:03:59 > 0:04:03Stairs up to the second floor. Through to the first of the bedrooms
0:04:03 > 0:04:08and apart from the ceiling being a bit bowed, it's a nice-sized space
0:04:08 > 0:04:12and I love that big fireplace. But...what's this?
0:04:14 > 0:04:18How odd! It's like this little anteroom which doesn't do anything.
0:04:18 > 0:04:25There's a horrible breeze-block wall. This is only a stud partition, so maybe you could take this out.
0:04:25 > 0:04:30And this room then could become either a very big bedroom with an en suite
0:04:30 > 0:04:36or maybe two bedrooms. Either way, you're going to need light and ventilation in here.
0:04:36 > 0:04:42'Up another flight of stairs to the top of the house and this attic room is a really lovely space,
0:04:42 > 0:04:46'but the boxing-in squad have been at it again,
0:04:46 > 0:04:51'although there's a lot more light thanks to the roof windows.
0:04:51 > 0:04:56'The property sits right on the road with no front garden. Is there any space at the back?'
0:04:56 > 0:05:00So at the rear of the property, a bit of a strange arrangement.
0:05:00 > 0:05:05This courtyard gives access up to a garden, which is way up there,
0:05:05 > 0:05:10but there's also a right of access for the next property through here to access their garden.
0:05:10 > 0:05:14But this bit is certainly yours and, within it, look at this.
0:05:14 > 0:05:19This is a massive, home made by the look of things, retaining structure
0:05:19 > 0:05:22to stop this garden wall here presumably falling down.
0:05:22 > 0:05:27Really that needs to be rebuilt, which will probably cost £5,000-£10,000.
0:05:27 > 0:05:32What you might want to consider is potentially extending the property
0:05:32 > 0:05:37and combing the work you do on that bit there with the much-needed extension.
0:05:37 > 0:05:40'Up these steps, there's a great bonus.'
0:05:40 > 0:05:44# The view from the top
0:05:45 > 0:05:48# Can be oh so...
0:05:48 > 0:05:51# ..very lonely... #
0:05:51 > 0:05:55Well, there are certainly issues with this property
0:05:55 > 0:06:00and it's going to take a lot of time, imagination and money to sort.
0:06:00 > 0:06:03But at the end of the day, it is a big house for the money.
0:06:03 > 0:06:09So I think there's cash to be made on this one. Let's see who bought it at the auction.
0:06:10 > 0:06:1224 is next.
0:06:12 > 0:06:15A lot of property. Who's going to say...
0:06:15 > 0:06:1860,000? Who'll start me at 60,000?
0:06:18 > 0:06:21At 60. Thank you. 62.
0:06:21 > 0:06:2462 is against you, stood. 64.
0:06:24 > 0:06:2565. At 65.
0:06:25 > 0:06:2966. 67.
0:06:29 > 0:06:3268. At 68. Sixty...
0:06:32 > 0:06:35Seventy? Seventy he's gone to. At seventy.
0:06:35 > 0:06:3771.
0:06:37 > 0:06:392. At 72. 73.
0:06:39 > 0:06:42Straight back. 73. 74.
0:06:42 > 0:06:4575. 76.
0:06:45 > 0:06:4677.
0:06:46 > 0:06:4878.
0:06:48 > 0:06:50And a half.
0:06:51 > 0:06:5379.
0:06:53 > 0:06:55And a half.
0:06:55 > 0:06:57And 80.
0:06:57 > 0:06:59At 80 and a half.
0:06:59 > 0:07:0282. 82.
0:07:02 > 0:07:0483. 83...half.
0:07:04 > 0:07:0783 half. 84.
0:07:07 > 0:07:09At 84. 85.
0:07:09 > 0:07:1285 he says. 85.
0:07:12 > 0:07:1785 once. 85 twice. At 85 and done.
0:07:17 > 0:07:19Sir, yours.
0:07:19 > 0:07:26'That final successful bid of £85,000 was made by Chris and his stepson Gareth.
0:07:26 > 0:07:32'Chris and his wife run a ski chalet business in Slovenia, but he used to live in Cornwall so knows it well.
0:07:32 > 0:07:37'Gareth's a professional equestrian rider based in Cornwall.
0:07:41 > 0:07:47'I met up with them to find out why they'd jumped for this property at the auction.'
0:07:47 > 0:07:52- Good to meet you both.- And you. - Congratulations. Tell me why you wanted it.
0:07:52 > 0:07:56It was actually quite a spur of the moment thing.
0:07:56 > 0:08:00Gareth has got a property which he's just sold in Plymouth
0:08:00 > 0:08:06and we thought we'd go to an auction to see what was available and how he could stretch his money.
0:08:06 > 0:08:09I was supposed to be demonstrating it, but we bought it.
0:08:09 > 0:08:11Right. And whose money is it?
0:08:11 > 0:08:14Mine, really.
0:08:14 > 0:08:19So Chris took you along to the auction to show you the ropes and spent your money?
0:08:19 > 0:08:25- Yeah.- So you hadn't been to see it. - No, other than I looked at the auction particulars.
0:08:25 > 0:08:32- Do you want to reconsider who you ask for advice?- I might do! I was pre-warned by my mum
0:08:32 > 0:08:34before I left.
0:08:34 > 0:08:38So tell me more about what you do when you're not doing this?
0:08:38 > 0:08:44- Well, I ride horses for a living and compete.- Tell me more.
0:08:44 > 0:08:47A variety of things. Show jumping, eventing.
0:08:47 > 0:08:53Aiming obviously to go on further and continue that as my career, really.
0:08:53 > 0:08:58'Chris is just as active, running his skiing holiday business,
0:08:58 > 0:09:01'so he's well used to organising. No sloping off for him.
0:09:06 > 0:09:12'But will he and his show jumping stepson Gareth have a clear round with this property?
0:09:12 > 0:09:16'Or fall at the first fence?' So what's the plan
0:09:16 > 0:09:20for the property? Tell me what you're going to do.
0:09:20 > 0:09:24On the top floor, hoping to change it into two bedrooms.
0:09:24 > 0:09:28And then make an en suite for the master bedroom
0:09:28 > 0:09:33and open-plan this slightly. Basically, modernise the whole thing.
0:09:33 > 0:09:39- The property needs a few more windows at the front.- Yes. The house next door is an identical copy
0:09:39 > 0:09:42and it's got two small windows directly above the front door.
0:09:42 > 0:09:47We hope to get permission to put two windows to marry those next door.
0:09:49 > 0:09:53'So Chris helped Gareth select this property to invest his money in.
0:09:54 > 0:10:01'It certainly looks like a cottage with potential, but there could be major structural issues outside.'
0:10:02 > 0:10:07Let's talk about the retaining wall. A bit of a problem. What are your plans?
0:10:07 > 0:10:13We've had a survey done and the structure which has been put in place at the moment
0:10:13 > 0:10:17is supporting the wall quite well. So the urgency has been taken away.
0:10:17 > 0:10:23The lady who owned it before us had a quote to rebuild the wall about four years ago for £10,000.
0:10:23 > 0:10:28But before we make a decision, we want to decide if we'd extend the back of the house
0:10:28 > 0:10:35and utilise the new supporting wall as part of the house extension, or just keep the courtyard there.
0:10:35 > 0:10:41- What kind of budget have you set aside for doing the work? - Up to about £30,000 at the moment.
0:10:41 > 0:10:47- And timescale?- Hoping to have it done in six months or as soon as we can get it before then.
0:10:47 > 0:10:52- The plan is to be ready for next spring. - 'Well, that was in August, 2010,
0:10:52 > 0:10:58'and when we first returned 11½ months later, it was still very much work in progress.
0:11:00 > 0:11:07'But the house had been stripped back to the bone and you could see a four-bedroom home emerging.
0:11:09 > 0:11:13'But there was still quite a bit to do.'
0:11:13 > 0:11:16Quite a lot. We've gone into an interesting adventure!
0:11:16 > 0:11:21We thought we were buying something we could quite quickly get into
0:11:21 > 0:11:27but the makeover we were going to do was more difficult. We had rotten floors and a lot of woodworm.
0:11:27 > 0:11:32We ended up gutting the whole building, rebuilding a few walls, but we've fallen in love with it.
0:11:32 > 0:11:35# Love is the sweetest thing... #
0:11:38 > 0:11:44'Chris's show jumping stepson Gareth had trotted off to work nearer London
0:11:44 > 0:11:49'and although Gareth was still doing his bit, Chris had taken the reins on this one.
0:11:49 > 0:11:54'The overgrown wilderness of a garden was starting to look the part
0:11:54 > 0:12:00'and the good news is that the shored-up wall outside the back door hasn't required much work.'
0:12:00 > 0:12:05When we first came here, it was all shored up.
0:12:05 > 0:12:07There were lots of beams everywhere.
0:12:07 > 0:12:13When you look at the wall, it looks bowed, but from the top it's fairly straight and stands reasonably.
0:12:13 > 0:12:19We've taken a lot of stuff away and found an old fireplace here, which we'll turn into a barbecue.
0:12:20 > 0:12:25'So has Chris been cooking on gas since our last visit?
0:12:25 > 0:12:30'Stay with us and see how he's finally turned this empty shell into a fabulously feathered nest
0:12:30 > 0:12:33'later in the programme.'
0:12:36 > 0:12:40# Take a sip of misty water... #
0:12:40 > 0:12:43'This is Hoo St Werburgh on the Hoo Peninsula in Kent.
0:12:43 > 0:12:50'It's part of the so-called Hundred of Hoo, a Saxon term used to divide up a shire,
0:12:50 > 0:12:55'a hundred being enough land to sustain a hundred households.
0:12:55 > 0:13:01'The question is will the lot today make someone hundreds if not thousands of pounds?'
0:13:01 > 0:13:06So on the way to the property and I've left the village well behind.
0:13:06 > 0:13:12It is just fields and farms as far as I can see, so top marks for a rural setting.
0:13:12 > 0:13:14But what exactly am I here to see?
0:13:14 > 0:13:19Well, it's not a farm, it's not a barn. It's a former care home
0:13:19 > 0:13:24and it had a guide price of £290,000-£300,000.
0:13:24 > 0:13:26Well, it's huge!
0:13:26 > 0:13:29A massive 30 bedrooms, in fact!
0:13:29 > 0:13:33So unless you want to be here until midnight, let's get cracking.
0:13:33 > 0:13:35# Well, come on, let's go
0:13:35 > 0:13:38# Let's go, let's go, little darling
0:13:38 > 0:13:41# And tell me that you'll never leave me
0:13:41 > 0:13:45# Come on, come on Let's go again... #
0:13:48 > 0:13:53'And talking of getting cracking, the property is rather the worse for wear.
0:13:53 > 0:13:57'It's huge, but also hugely in need of some serious work.
0:13:57 > 0:14:04'The imposing front door is locked, so it's around the back for me to take a deep breath and explore.'
0:14:05 > 0:14:06Oh!
0:14:06 > 0:14:10I didn't expect this place to be like a palace on the inside,
0:14:10 > 0:14:13but it's really in a bad way.
0:14:13 > 0:14:16There's a little room here that's smelly and dingy
0:14:16 > 0:14:22and there's holes everywhere and there's damp. Pretty much the same in that room.
0:14:22 > 0:14:26I know this building was used for some illegal late-night parties.
0:14:26 > 0:14:29You can see it's taken a bit of a battering.
0:14:29 > 0:14:34A lot of money needs to be spent in here and a lot of work needs done.
0:14:35 > 0:14:40'I can't even get into half of the upper floor. It's far too dangerous.
0:14:41 > 0:14:47'There's been a massive leak through the roof. Unsurprising when it doesn't have any tiles.
0:14:47 > 0:14:54'Throughout the rest of the building, it's not much better, with dodgy electrics, smashed windows
0:14:54 > 0:14:57'and a lift shaft minus the lift, of course.'
0:14:57 > 0:15:00# Highway to the danger zone
0:15:03 > 0:15:08# Right into the danger zone... #
0:15:08 > 0:15:12'So how do I feel about all of this? Surprisingly chipper, actually.'
0:15:12 > 0:15:17So I think we've established we haven't got features, character or style here,
0:15:17 > 0:15:22but you have got the space and with that comes scope for development.
0:15:22 > 0:15:27Now I'm not going to suggest refurbing this as a care home or a massive hotel
0:15:27 > 0:15:31because this lot came with planning permission for nine flats.
0:15:31 > 0:15:36Six one-beds, one two-bed and two three-beds, which is brilliant.
0:15:36 > 0:15:42That is a lot of units. It's a lot of work and a lot of money to spend for sure,
0:15:42 > 0:15:44but potentially a lot of profit.
0:15:46 > 0:15:50'The approved plan's well laid-out, getting in as many self-contained units as possible,
0:15:50 > 0:15:55'whilst making best use of the great spaces the building has to offer.
0:15:55 > 0:16:01'Just take a look at what will be the master three-bedroom apartment off the main entrance.'
0:16:01 > 0:16:06With this three-bed, after that rather grand entrance,
0:16:06 > 0:16:12you have this wonderfully spacious lounge, but it's not just this space. Go on, get back!
0:16:12 > 0:16:14Look - it's all this as well.
0:16:14 > 0:16:17This is huge!
0:16:17 > 0:16:23And not only that. You've got a lovely garden to look out onto and there's the lake.
0:16:23 > 0:16:28Know what I really like about this property? The development hasn't been about carving up
0:16:28 > 0:16:32loads of big rooms into small, little pokey flats.
0:16:32 > 0:16:36This three-bed property will be fabulous once done.
0:16:36 > 0:16:41And there's so much room to play with. I love it.
0:16:41 > 0:16:47'If you've got the money to do this place up, well, it really is an interesting opportunity,
0:16:47 > 0:16:51'but I'm not just after interesting. I'm also after profitable.
0:16:51 > 0:16:55'So what's the best option here? Selling? Renting? Or both?'
0:16:55 > 0:17:02OK, let's do some rough maths. Say you managed to sell all the one-beds for £130,000 each.
0:17:02 > 0:17:05That should cover your build and purchase costs.
0:17:05 > 0:17:11So we're then left with all the others and they should be pure profit.
0:17:11 > 0:17:13Sounds tempting, eh?
0:17:13 > 0:17:18Now that is a very vague calculation and your spend on the place could be higher,
0:17:18 > 0:17:23but it's helpful to look at the profits split up into these nine units.
0:17:23 > 0:17:29Would you have to sell them all to see the return you need? How many to break even?
0:17:29 > 0:17:35In this tricky market, could you keep hold of just a few to rent out while the market picks up?
0:17:35 > 0:17:41Once you've invested your cash in the whole of this building and split it into separate parts,
0:17:41 > 0:17:44you must deal with each unit individually
0:17:44 > 0:17:48and make sure that the overall investment works for you.
0:17:48 > 0:17:55'It's tricky. The market for first-time buyers is sluggish and that's who these are aimed at,
0:17:55 > 0:18:00'so if the buyer takes this on and needs to shift all the flats to see a return,
0:18:00 > 0:18:05'and aren't interested in buy to lets, it's too much of a risk.
0:18:05 > 0:18:09'In my view, this would be handy for a portfolio.
0:18:09 > 0:18:15'Sell a few, rent a few, keep ownership of the freehold and you have a solid money maker.
0:18:15 > 0:18:19'So with a guide price of £290,000-£300,000
0:18:19 > 0:18:23'we asked along a local estate agent to get her opinion.'
0:18:23 > 0:18:25This could be
0:18:25 > 0:18:31a very exclusive development and community that is created in this area.
0:18:31 > 0:18:37'So let's get straight down to it. If the purchasers had to rent some of the units out for a time,
0:18:37 > 0:18:42- 'what could they expect to achieve?' - One-bedroom apartments are achieving
0:18:42 > 0:18:44around £600 per calendar month.
0:18:44 > 0:18:49Two-bedroom apartments around £750 per calendar month.
0:18:49 > 0:18:53And three-bedroom apartments up to about £800 per month.
0:18:53 > 0:18:59'What's the selling potential for this property once broken down into separate dwellings?'
0:18:59 > 0:19:05Currently, in the local market, a one-bedroom apartment will achieve £100,000-£110,000.
0:19:05 > 0:19:09A two-bedroom apartment is £120,000-£130,000.
0:19:09 > 0:19:13And if there was a three-bedroom apartment in the local market,
0:19:13 > 0:19:16£140,000-£150,000 would be tops.
0:19:16 > 0:19:23This lot is clearly worth the guide, but only for those with access to the big bucks,
0:19:23 > 0:19:26prepared to take a few risks in uncertain times.
0:19:26 > 0:19:31But if you're lucky enough to have that spare half a million and the rest,
0:19:31 > 0:19:37well, this lot could make you some serious money. Let's see who went for it at the auction.
0:19:40 > 0:19:44Lot 14 we go to now. It's a substantial former care home
0:19:44 > 0:19:48for conversion into nine residential units. Anyone at 300,000?
0:19:48 > 0:19:50290, then, can I say?
0:19:50 > 0:19:55280? I'm not going below 280. There's a lot of property for 280,000.
0:19:55 > 0:19:58280, I'm on the way. I'm obliged, sir. 280 I have.
0:19:58 > 0:20:03285 in the front. Are we all done at 285...? 290. I'm obliged.
0:20:03 > 0:20:07292, sitting down. 295, can I say?
0:20:07 > 0:20:11295 I've got. And 7 now. 7 do I see?
0:20:11 > 0:20:16Are we all done at 295? It's in the room. 295 only, for the first time, then.
0:20:16 > 0:20:20295 is against you in the front for the second time.
0:20:20 > 0:20:25295 for the third and final time. If we're all done at £295,000.
0:20:25 > 0:20:30Wow. What a lot of property for that. Your number, sir, is B460. Thank you.
0:20:30 > 0:20:34'That successful bid of £295,000 was placed
0:20:34 > 0:20:39'by friends and business partners Stuart and John. They both have solid backgrounds in finance
0:20:39 > 0:20:45'as well as having their own rental portfolios, but this is their first joint venture.'
0:20:45 > 0:20:49Guys, congratulations. It's great to meet you both.
0:20:49 > 0:20:56- What's the story behind you two wanting to buy this site?- Well, we've both done developing before,
0:20:56 > 0:21:02but on a much smaller scale. We bought small houses, refurbished them. We fancied a bigger project.
0:21:02 > 0:21:09We didn't quite plan it as big as this, initially, but we saw it in the auction, viewed it,
0:21:09 > 0:21:14went along not really expecting to get it and here we are now!
0:21:14 > 0:21:18- And thought, "Damn! What have we done?"- "We've bought a huge site!"
0:21:18 > 0:21:25- Whose idea was it to even think about buying this?- Yours. - Was it mine? Yeah, probably was.
0:21:25 > 0:21:29What sort of potential can you see here? That's intriguing me.
0:21:29 > 0:21:33As you can see from the building, it is a massive project,
0:21:33 > 0:21:38but the potential as you can see from the reservoir nearby - it's a really nice rural position.
0:21:38 > 0:21:45I think potentially it could be beautiful. Lots of scope. There are nice high ceilings.
0:21:45 > 0:21:50Everything about it lends itself to a great, sympathetic development.
0:21:50 > 0:21:56'So will they stick with the proposed plans or do they have other ideas?'
0:21:56 > 0:21:59We're looking at doing a slight amendment.
0:21:59 > 0:22:04- Depending on how complex it is. - We've got six one-beds here,
0:22:04 > 0:22:06one two-bed and two three-beds,
0:22:06 > 0:22:12but we could actually convert that to having five two-beds by going into the roofspace.
0:22:12 > 0:22:14OK.
0:22:14 > 0:22:20- So we're looking at that option. - If we have to go back to full planning, have to submit plans,
0:22:20 > 0:22:25wait 3-6 months, appeals and so forth... If it's straightforward,
0:22:25 > 0:22:28we'll see if we can do an amendment to it and go into the attic space.
0:22:28 > 0:22:33I'm really glad you've said that because something did worry me
0:22:33 > 0:22:38about so many one-bedroom flats. It really is a limited market,
0:22:38 > 0:22:44one person wanting to buy a flat here in the middle of nowhere. You're very wise to do that.
0:22:44 > 0:22:50'That sounds like a really smart way of doing things and with each two-bed going up into the loft space
0:22:50 > 0:22:56'the pair plan to make them feel more like houses, each with their own front door.
0:22:56 > 0:23:02'Still, in the current tougher market they'll need to sprinkle a little magic on the development
0:23:02 > 0:23:08'to make sure they reap the rewards. But luckily there's someone on hand with a few tricks up his sleeve.'
0:23:08 > 0:23:13- John, you have an interesting hobby? - That would probably be the magic.
0:23:13 > 0:23:18- Do you really do magic tricks?- Yes. - Go on! Show me one!
0:23:18 > 0:23:24- A quick one.- Go on. Don't saw me in half.- I won't saw you in half. It's tempting, but I won't.
0:23:24 > 0:23:28- Thank you!- We're here really to make some money on the project.
0:23:28 > 0:23:33- Absolutely.- So what I sometimes do is I take five bits of paper. OK?
0:23:33 > 0:23:37- As you can see, they're just five bits of paper, yeah?- Yeah.
0:23:37 > 0:23:44- Four, five. You mentioned money. - Yes.- And what would be quite nice with money...er, with paper
0:23:44 > 0:23:48is to turn it into money. So if you just watch. If I flick it...
0:23:48 > 0:23:52it turns into one, two, three, four, five bits of money.
0:23:52 > 0:23:59- That is amazing! Can I have a look at that money?- No!- If he could do that, we wouldn't have bought this!
0:23:59 > 0:24:04- So if I'm hard up any time... - You can just turn paper into money.
0:24:04 > 0:24:09You have got no worries at all, Stuart! Stick with him!
0:24:11 > 0:24:17'Well, if Stuart and John take the proposed eight months they expect it will take to finish this job,
0:24:17 > 0:24:22'perfecting that trick on a much larger scale, then they could be in line for a pretty decent profit.'
0:24:22 > 0:24:29Is there anything worrying you about having bought this? You've got the plans, the finance...
0:24:29 > 0:24:33- The budget!- Is the money the big worrying factor here?
0:24:33 > 0:24:39With a project this size, it's got to be. Until you rip it out, you don't know what horrors are there.
0:24:39 > 0:24:43So the budget has got to be the biggest concern.
0:24:43 > 0:24:48- Hopefully, we've budgeted roughly... - Cautiously!- Come on, tell me!
0:24:48 > 0:24:52- I can't tell you!- I need to know! I can't let you go until I know.
0:24:52 > 0:24:58Roughly, ballpark, what do you think you're going to be spending on this to turn it into...
0:24:58 > 0:25:02- Including the grounds, the whole thing...- I'll let you say this.
0:25:02 > 0:25:06Well, we have been a bit over-cautious, I think, upfront.
0:25:06 > 0:25:12- We're thinking about 350-400. - So you think you'll spend £400,000 on this to really turn it around.
0:25:12 > 0:25:17Stuart and John, it has been such a delight meeting you both today and great fun. Good luck.
0:25:17 > 0:25:23- Thank you.- I can't wait to see it. Well done.- Thanks very much. - Stuart, John.
0:25:23 > 0:25:28So John and Stu have now got the bottle to do this and they've got great ideas.
0:25:28 > 0:25:34I'm so glad they're reducing the number of one-beds, but this is all subject to planning permission.
0:25:34 > 0:25:39You've got to make sure this place is really special to attract buyers.
0:25:39 > 0:25:44So do the pair have the magic touch? You can find out later on in the show.
0:25:45 > 0:25:49'Coming up: in South Wales, I have a kid in a sweet shop moment.'
0:25:49 > 0:25:54Imagine how many gobstoppers and sherbet dib-dabs you could get in here.
0:25:55 > 0:26:02'Amending the planning permission on this former care home in Kent meant delays for Stuart and John.'
0:26:02 > 0:26:05It also blew our budget somewhat.
0:26:06 > 0:26:13'But first, in Cornwall let's see if Chris has finally turned this mid-terrace into a family home.'
0:26:13 > 0:26:15We've really got a brand-new house.
0:26:20 > 0:26:26'Time now to return to Torpoint in Cornwall and this two-bedroom terrace
0:26:26 > 0:26:32'which I first visited in August, 2010. Chris, who runs a ski chalet business,
0:26:32 > 0:26:39'and his stepson Gareth bought it at auction for £85,000 of Gareth's money.
0:26:39 > 0:26:44'When we first went back 11 months later, Chris had taken control of the renovation,
0:26:44 > 0:26:47'but it was still work in progress.'
0:26:48 > 0:26:54We discovered the makeover was a little more difficult than thought. We had rotten floors, woodworm.
0:26:54 > 0:27:00We've ended up gutting the building, rebuilding quite a few walls, but we sort of fell in love with it.
0:27:00 > 0:27:07'So 19 months after our first visit, we're back to see if the skiing fan is still in love with the place
0:27:07 > 0:27:11'or has he just crashed and burned?
0:27:27 > 0:27:30'He hasn't done it in record time, but it looks like Chris can now enjoy
0:27:30 > 0:27:33'a well-deserved apres-ski drink.'
0:27:35 > 0:27:40Since you were last here, basically we've just about finished the house.
0:27:40 > 0:27:46At the last filming, we just had the top of the house finished, or very nearly finished.
0:27:46 > 0:27:51Now we've worked our way all the way down through the whole house and we're just about finished.
0:27:53 > 0:27:59'The final piece of the jigsaw is finishing the en suite wet room on the top floor,
0:27:59 > 0:28:04'but that's pretty small beer compared with what this project has thrown at him.'
0:28:04 > 0:28:10The biggest job really would have been contending with all the floors, which were rotten,
0:28:10 > 0:28:16and having to gut the whole inside and rebuild it. We're really got a brand-new house in old walls.
0:28:19 > 0:28:24'I reckon it's all been well worth the wait, with the ground floor transformed
0:28:24 > 0:28:27'into a really welcoming space.'
0:28:27 > 0:28:31Basically, we had to reconfigure this whole ground floor area.
0:28:31 > 0:28:36We ended up with a kitchen which had two entrances that we didn't need.
0:28:36 > 0:28:41So we removed one of those and ended up creating a lovely large living space.
0:28:41 > 0:28:45I'm absolutely delighted with the end result.
0:28:45 > 0:28:52'New windows at the front of the house turned two little box rooms into much more useful areas.
0:28:52 > 0:28:58'Just remember that to call them bedrooms you'd have to comply with building regulations,
0:28:58 > 0:29:01'but the two main bedrooms look great.
0:29:01 > 0:29:07'Outside, the addition of a summer house in the garden makes the perfect spot to enjoy the views.
0:29:10 > 0:29:16'And for good measure, the wonky wall outside the back door has been strengthened,
0:29:16 > 0:29:20'which has allowed Chris to create yet more outside space.'
0:29:20 > 0:29:27This is one of the areas I am really very pleased with. We were worried about the retaining wall,
0:29:27 > 0:29:34which is very happily standing here. What we've now done is put an RSJ in underneath the floor here.
0:29:34 > 0:29:39We decided instead of using the patio at the bottom with the barbecue area,
0:29:39 > 0:29:44we brought the patio a little higher to give us a lovely place to enjoy a gin and tonic.
0:29:45 > 0:29:48'Make mine a British pint of beer, Chris.
0:29:48 > 0:29:52'Gareth is working in London, so couldn't come down for the filming,
0:29:52 > 0:29:57'but he's been in touch regularly about progress.
0:29:57 > 0:30:01'So let's get down to the nitty gritty. How much has all this cost?'
0:30:01 > 0:30:07We set off with the idea we might be able to do a quick turnaround at about £30,000.
0:30:07 > 0:30:11Then obviously as things changed we realised we'd spend a lot more,
0:30:11 > 0:30:14but we've been lucky in the end to spend just over £47,000.
0:30:14 > 0:30:18When you consider what we've got it's actually very good.
0:30:19 > 0:30:23'The plan is to sell the house on as soon as possible,
0:30:23 > 0:30:28'so Gareth may see a return on his initial outlay before too long.
0:30:28 > 0:30:33'On top of the purchase price of £85,000, Chris's spend of £47,000
0:30:33 > 0:30:38'will bring the total here to £132,000.
0:30:38 > 0:30:42'We asked two local estate agents for their take on the property.'
0:30:42 > 0:30:44It's deceptively spacious.
0:30:44 > 0:30:48A lot more space than I first realised. Lots of character features
0:30:48 > 0:30:52and it's very conveniently located to the village and shops.
0:30:52 > 0:30:59The finish is to a high standard and they've kept the original features with a very cosy feel.
0:30:59 > 0:31:06'The estate agents agree that the house could rent out for £575-£600 per calendar month,
0:31:06 > 0:31:10'which would be a yield of between 5% and 5½%.
0:31:10 > 0:31:16'But selling is Chris and Gareth's preferred option, so what should the renovated property fetch
0:31:16 > 0:31:21'bearing in mind the total investment here of £132,000?'
0:31:21 > 0:31:28I would put this on the market today for a figure in the region of £185,000.
0:31:28 > 0:31:33The guide price of this property would be £184,950.
0:31:33 > 0:31:37I think delighted, really. That's what it's on the market for.
0:31:37 > 0:31:41It's very nice to have that opinion reaffirmed by two agents.
0:31:41 > 0:31:45We're hoping to get very close to that £184,950 if we possibly can.
0:31:47 > 0:31:53'If they do sell for around £185,000 Chris and Gareth are looking at a pre-tax profit
0:31:53 > 0:31:59'in the region of £53,000, which will do nicely, thank you very much.
0:31:59 > 0:32:03'How has Chris enjoyed the process of turning this property around?'
0:32:03 > 0:32:08For me it's been just one great adventure. I thoroughly enjoyed it.
0:32:08 > 0:32:13It's had its ups and downs, but that's what makes it much more fun. Looking forward to the next one.
0:32:16 > 0:32:21This is Porthcawl, a seaside resort between Swansea and Cardiff.
0:32:21 > 0:32:27Plans are afoot to revitalise its waterfront and although it's not as popular as it used to be
0:32:27 > 0:32:33during the British beach holiday heyday, it's a lovely location to set up home.
0:32:34 > 0:32:39Well, just a mile from the sea front is the property I'm here to see.
0:32:39 > 0:32:4270,000 quid and a very interesting opportunity.
0:32:42 > 0:32:45It's this former sweet shop
0:32:45 > 0:32:52with some residential accommodation above. Big question is: is it a sher-bet for an investment?
0:32:53 > 0:32:55Oh, wow! I didn't expect that!
0:32:55 > 0:33:00Absolutely huge space behind the fairly small frontage.
0:33:00 > 0:33:06Can you imagine how many gobstoppers, fruit salads, blackjacks and sherbet dib-dabs
0:33:06 > 0:33:11you could get in here? Gosh. Well, there you go. Basically, one huge space.
0:33:11 > 0:33:17Goes from the front all the way to the back. This main area is a bit of a state.
0:33:17 > 0:33:21It gets fairly dark and dismal and dingy as you go towards the back,
0:33:21 > 0:33:27but in terms of square footage commercially very potentially attractive space. There is a lot.
0:33:27 > 0:33:29And that is good news.
0:33:29 > 0:33:33# Sweets for my sweet Sugar for my honey
0:33:33 > 0:33:36# I'll never ever let you go... #
0:33:36 > 0:33:41Being an old sweet shop means that this property has A1 usage,
0:33:41 > 0:33:45so you could put any other business that falls into the same class here.
0:33:45 > 0:33:49You could also change it to A2 without any planning permission,
0:33:49 > 0:33:53which means you could turn this into offices, for example.
0:33:53 > 0:33:59But whatever you do, it's going to need a lot of work to bring it up to standard.
0:33:59 > 0:34:01And there's more upstairs.
0:34:01 > 0:34:05Upstairs here is a one-bedroom flat and half-decent it is as well.
0:34:05 > 0:34:10Kitchen towards the back there, a bathroom there, your one bedroom
0:34:10 > 0:34:15and then down this little corridor/landing to your living room area.
0:34:15 > 0:34:20It's actually in pretty good nick and in terms of size, big thumbs up.
0:34:20 > 0:34:26And I do like the fact that this is a mixed use property. Commercial downstairs, this flat here.
0:34:26 > 0:34:32It gives you lots of options. I think restore this for sure. The big question is about downstairs.
0:34:32 > 0:34:35# Lollipop, lollipop... #
0:34:35 > 0:34:39If you have the right approach here, you could have this property licked.
0:34:39 > 0:34:41# Lollipop, lollipop... #
0:34:41 > 0:34:48You could turn it into another flat downstairs or even convert the whole lot into a three-bedroom house.
0:34:48 > 0:34:50# Oh, lolly, lollipop... #
0:34:50 > 0:34:55What does the auctioneer who sold it think of this lot, guided at £70,000?
0:34:55 > 0:35:01Does he have a sweet tooth or does it leave a sour taste? Let's find out.
0:35:03 > 0:35:06# Sweeter than candy on a stick... #
0:35:06 > 0:35:09Well, my initial impressions
0:35:09 > 0:35:15of the property are that it smacks as a residential redevelopment opportunity.
0:35:15 > 0:35:18A former shop on the ground floor with accommodation above.
0:35:18 > 0:35:24My best suggestion to any purchaser would be to either sub-divide into two flats
0:35:24 > 0:35:27or to turn back to a three-bedroom house.
0:35:28 > 0:35:34So what would the property with its auction guide price of £75,000 be worth
0:35:34 > 0:35:37if it was split into flats? Or made into a whole house?
0:35:38 > 0:35:45Sale values, for a one-bedroom flat between £65,000 and £75,000.
0:35:45 > 0:35:50For a two-bedroom flat, you're looking at £80,000-£90,000.
0:35:50 > 0:35:56For a three-bedroomed house, I believe you'd be looking at a sales value
0:35:56 > 0:36:00in the region of £150,000-£165,000.
0:36:00 > 0:36:04So what does the future have in store for this former sweet shop?
0:36:04 > 0:36:08Will it be residential properties? Will it be converted into flats, houses?
0:36:08 > 0:36:11Or maybe opened up as a shop again?
0:36:11 > 0:36:14Only one way to find out. Let's go to the auction.
0:36:14 > 0:36:18Who's going to start me off at 65,000?
0:36:18 > 0:36:21Thank you. 65. 65,000.
0:36:21 > 0:36:25Looking for 66. 66, seated. 67.
0:36:25 > 0:36:28Any advance on 67,000? 68.
0:36:28 > 0:36:3068 is bid. 68. And 9.
0:36:30 > 0:36:34A half. Half is bid. And 70 I'm looking for.
0:36:34 > 0:36:3870 is bid, thank you. Any advance on 70? 70 and a half.
0:36:38 > 0:36:40Looking for 1. Thank you.
0:36:40 > 0:36:441 and a half. 2. 2 and a half. 3.
0:36:44 > 0:36:473 and a half. 4. 4 and a half. 5.
0:36:47 > 0:36:505 and a half. 6. 6 and a half. 7.
0:36:50 > 0:36:547 and a half. 8. 8 and a half. 9.
0:36:54 > 0:36:589 and a half. 80. Take me in ones. 1.
0:36:58 > 0:37:002. 3. 4.
0:37:00 > 0:37:025. 6.
0:37:02 > 0:37:077. 8? 87 on you, sir. At 87,000.
0:37:07 > 0:37:11Don't see any advance on 87. I'm going to sell at 87.
0:37:11 > 0:37:1387,000?
0:37:14 > 0:37:1887,000. Sir...32. Thank you.
0:37:18 > 0:37:26The bidding was so frantic that it was hard to catch the successful bidder, who paid £87,000.
0:37:26 > 0:37:28But here he is - Evrawg.
0:37:28 > 0:37:34He's a local who runs his own building company and also has several other properties.
0:37:34 > 0:37:40I caught up with him at the latest addition to his portfolio.
0:37:40 > 0:37:46- Lovely to meet you. Congratulations. - Thank you.- You bought a sweet shop! - Ex!- No sweets left, unfortunately.
0:37:46 > 0:37:52- Yeah, yeah.- Why did you want to buy it?- The intention is to turn it back into two flats.
0:37:52 > 0:37:56That's the intention. There's a flat upstairs presently.
0:37:56 > 0:37:59I'll convert this to a two-bed flat.
0:37:59 > 0:38:04- Do you remember it as a sweet shop? Did you ever come in?- Many times.
0:38:04 > 0:38:09- A long time ago!- No! Was it a proper old-fashioned sweet shop?
0:38:09 > 0:38:14- Sweet shop, newsagent.- A bit of a sad loss to the community.
0:38:14 > 0:38:19- It is, but another one's opened up the road.- Ah, OK.
0:38:19 > 0:38:25- What about you?- I'm a builder by trade.- That's useful. - It is in this game, for sure.
0:38:25 > 0:38:31And I work locally most of the time. But this is an investment for myself privately, not through work.
0:38:31 > 0:38:36- OK. So is the idea to convert them for something to rent out?- It is.
0:38:36 > 0:38:42- It is, yes.- And why not buy an existing house that you could convert into flats?
0:38:42 > 0:38:48When I looked at this in the auction, it had lapsed planning permission. It's been accepted once
0:38:48 > 0:38:53for planning. In fact, it lapsed shortly before I purchased it.
0:38:53 > 0:39:00So I'm liaising with the local authority at the moment as some of the work has already started.
0:39:00 > 0:39:05- Right.- So, in effect, the planning should still stand.
0:39:05 > 0:39:07- And what are they saying about that? - Not yes or no.
0:39:07 > 0:39:11# Love is like candy on a shelf... #
0:39:12 > 0:39:17'Let's hope the council does say yes. It would certainly be a sweet turn of events
0:39:17 > 0:39:25'to avoid going through the planning again and continue with the conversion that's been started.'
0:39:26 > 0:39:31# Just help yourself to my lips To my arms
0:39:31 > 0:39:36# Just say the word and they are yours... #
0:39:36 > 0:39:41So tell me what the process is to convert this back to two flats?
0:39:41 > 0:39:46Well, construct an entrance at the front here to separate two entrances.
0:39:46 > 0:39:49This will be the lounge in here.
0:39:49 > 0:39:53There will be two bedrooms and a bathroom there. Kitchen where it is.
0:39:53 > 0:40:00And upstairs then I'm going to split the front room up to form a smaller bedroom,
0:40:00 > 0:40:03so that becomes a two-bedroom flat.
0:40:03 > 0:40:08- What's the conversion cost?- £20,000. There's a lot of work down here.
0:40:08 > 0:40:12- Right. And that's with you doing most of it yourself?- Yes.
0:40:12 > 0:40:17I'll have sub-contractors in for the plumbing. It has to be gas safe. And the electrician.
0:40:17 > 0:40:22That's got to be done by sub-contractors and certificated.
0:40:22 > 0:40:26- So what's the timescale?- Em, about 12 weeks.- Including the planning?
0:40:26 > 0:40:30Well, I'm presuming the planning will still stand. I'm hoping.
0:40:30 > 0:40:37The planning... Well, that's the plan. I'm thinking positive that the planning still stands!
0:40:37 > 0:40:43- Good stuff. Well, congratulations. - Thank you.- Good luck with it. Look forward to seeing it.- Thanks.
0:40:44 > 0:40:50Well, how will Evrawg get on converting this former sweet shop into two flats?
0:40:50 > 0:40:54It all depends on getting that all-important planning permission.
0:40:54 > 0:40:59Will he be enjoying the sweet smell of success? Find out later.
0:41:02 > 0:41:08- Well, it's been some time now since we saw those properties. - Has it been money well spent?
0:41:08 > 0:41:10Let's go back and find out.
0:41:11 > 0:41:18Back now to the Hoo Peninsula in Kent where this former care home with planning permission for 9 flats
0:41:18 > 0:41:23sold at auction for £295,000. The home had lain derelict for a number of years,
0:41:23 > 0:41:27so it really was in a pretty bad state.
0:41:27 > 0:41:31However, undeterred by the task ahead of them,
0:41:31 > 0:41:35friends and part-time property developers John and Stuart went for it
0:41:35 > 0:41:40and John had a trick up his sleeve to help make this one work.
0:41:40 > 0:41:46If I just flick it like that... it turns into one, two, three, four, five bits of money.
0:41:46 > 0:41:48That is amazing!
0:41:49 > 0:41:53But the boys were going to need more than sleight of hand here.
0:41:53 > 0:41:57Their strategy was to amend the existing planning permission,
0:41:57 > 0:42:02go up into the loft space and create more of the more profitable two-bed flats.
0:42:02 > 0:42:07The budget for this mammoth undertaking was £350,000-£400,000
0:42:07 > 0:42:11and their timescale was just eight months.
0:42:11 > 0:42:16Almost exactly 12 months after our visit, we're back
0:42:16 > 0:42:21to see if John and Stuart have done something magical with this former care home.
0:42:21 > 0:42:26# I never believed in things that I couldn't see
0:42:26 > 0:42:28# No magic, it happened to me
0:42:28 > 0:42:32# Now I know there can be no doubt
0:42:32 > 0:42:36# You can do magic
0:42:36 > 0:42:41# You can have anything that you desire
0:42:41 > 0:42:43# Magic
0:42:43 > 0:42:48# And you know you're the one who can put out the fire... #
0:42:51 > 0:42:56Two of the nine units are complete and whilst there's still a lot to do,
0:42:56 > 0:43:02the main reason for the delay was the boys made amendments to the planning permission and then some!
0:43:02 > 0:43:08What we did, we decided that the original drawings and how they had mapped it out
0:43:08 > 0:43:12didn't utilise the space that we had,
0:43:12 > 0:43:14particularly in the roof.
0:43:14 > 0:43:19So we decided to go back to the architects and maximise the development.
0:43:19 > 0:43:23We created, essentially, three three-beds,
0:43:23 > 0:43:27three two-beds and three one-beds,
0:43:27 > 0:43:31which obviously pushed the development value up,
0:43:31 > 0:43:36but also sort of blew our budget somewhat.
0:43:36 > 0:43:43So the development now consists of nine houses rather than flats, each with its own front door,
0:43:43 > 0:43:46garden area and parking for two cars.
0:43:46 > 0:43:52There was a lot of structural work to do. The whole place had to be properly insulated
0:43:52 > 0:43:56and they had to install a pump to take waste to the public drains.
0:43:56 > 0:44:01All of that has cost so just how much have they spent here?
0:44:01 > 0:44:06Well, the original budget was 350, based on what was on the planning,
0:44:06 > 0:44:11but with a project this size there's so many variables and you can't really plan
0:44:11 > 0:44:17what's going to come at you. So at this moment in time we're working on about 600.
0:44:17 > 0:44:20So way over the original budget.
0:44:21 > 0:44:27Oh, ouch! That's quite an overspend, but this is a big development at the luxury end of the market.
0:44:27 > 0:44:33The guys have done things to a pretty high standard as John demonstrates in one of the houses.
0:44:33 > 0:44:36So this is the one-bed unit.
0:44:36 > 0:44:43Essentially, what we've got here is a bedroom upstairs with bathroom and toilet.
0:44:43 > 0:44:45We've also got a downstairs toilet.
0:44:45 > 0:44:49This is very open plan here with wooden floors.
0:44:49 > 0:44:54Essentially, what we've done here is kept a modern-day living feel
0:44:54 > 0:44:59and because the kitchen can be such a focal point in a property,
0:44:59 > 0:45:03we decided to go for high-spec, hand-made, hand-painted units
0:45:03 > 0:45:06with a stainless steel oven and hob.
0:45:06 > 0:45:12So we think that we've maximised the space as best as possible.
0:45:14 > 0:45:20When they finish off the rest of the units to this standard, they'll be very desirable indeed.
0:45:20 > 0:45:27They've sold 7 out of the 9 off plan. This house has already turned into the purr-fect home.
0:45:27 > 0:45:34The buyers of this property managed to secure it very early on in the build stages,
0:45:34 > 0:45:40so what worked out fantastically for them was it allowed them choices to make throughout the process.
0:45:40 > 0:45:45In this particular kitchen, the work surfaces are all made of quartz
0:45:45 > 0:45:48and the kitchen itself has all been hand-made.
0:45:48 > 0:45:53Similarly, all the appliances are all top of the range.
0:45:53 > 0:45:56I think the overall kitchen looks absolutely amazing.
0:45:56 > 0:46:00Stuart and John hope to have everything finished in two months,
0:46:00 > 0:46:03which will be four months behind schedule.
0:46:03 > 0:46:07Their total outlay looks like being £895,000,
0:46:07 > 0:46:13including the £295,000 purchase price, so they are well over budget,
0:46:13 > 0:46:17but don't forget this savvy pair have aimed very high with this.
0:46:17 > 0:46:23They amended the planning permission and went all out on higher spec houses for a higher return.
0:46:23 > 0:46:28Have they succeeded? What do two local estate agents think?
0:46:28 > 0:46:32If I hadn't seen it, I wouldn't have believed it.
0:46:32 > 0:46:36This is unique. These are going to appeal to downsizers, couples,
0:46:36 > 0:46:41people who want something special, a little bit different.
0:46:41 > 0:46:43And here I think you've found it.
0:46:43 > 0:46:47Personally, I love the development. I like all the properties.
0:46:47 > 0:46:49I like the fact that it's unique,
0:46:49 > 0:46:55so they'll have their own driveway, they're out in the country, they have lovely views.
0:46:55 > 0:47:00I would expect that they would sell very quickly, even in a very difficult market.
0:47:00 > 0:47:05So far, so good, but what about the figures?
0:47:05 > 0:47:08What could the three one-bed houses be worth?
0:47:08 > 0:47:13I would suggest selling the one-bedroom properties from £125,000
0:47:13 > 0:47:16to £135,000.
0:47:16 > 0:47:22I would suggest a price guide of £135,000 to £140,000.
0:47:22 > 0:47:25And the three two-bed houses?
0:47:25 > 0:47:28I would suggest guide prices
0:47:28 > 0:47:32of £155,000 to £160,000.
0:47:32 > 0:47:39I would suggest that they could be marketed at a price from £170,000 to £190,000.
0:47:39 > 0:47:44And what about the three three-bed houses?
0:47:44 > 0:47:48The smallest of the three-bedrooms, I would suggest guide pricing
0:47:48 > 0:47:52around the £195,000 to £200,000.
0:47:52 > 0:48:00The middle-size home, I would suggest around the £220,000 to £225,000.
0:48:00 > 0:48:07And then the large one, which is absolutely stunning, around the £250,000 price range.
0:48:07 > 0:48:12For the three-bedroom properties, I would suggest marketing them at a price from £260,000
0:48:12 > 0:48:15to £270,000.
0:48:16 > 0:48:20Wow. So if John and Stuart sell at the top end of those valuations,
0:48:20 > 0:48:26I reckon they could be looking at a pre-tax profit of £905,000!
0:48:27 > 0:48:31# Oh ho ho, it's magic
0:48:32 > 0:48:34# You know... #
0:48:34 > 0:48:40- Pretty much bang on, I think. - I think most of them are pretty much where we put the price at.
0:48:40 > 0:48:45So if they're saying that as well, we've got the prices right, haven't we?
0:48:47 > 0:48:53The estate agents estimate that renting all the houses out could generate a yield
0:48:53 > 0:48:55of between 9.5% and 10.5%
0:48:55 > 0:49:00so whichever way you slice it these boys have done well. Very well.
0:49:00 > 0:49:04- So what's next? - If the right project came up,
0:49:04 > 0:49:11we probably would work together again, but maybe not to a project of this size.
0:49:11 > 0:49:15- I think the smaller ones we'd look to do.- Yeah, I think so.
0:49:20 > 0:49:24Back now to Porthcawl in South Wales
0:49:24 > 0:49:28where Evrawg paid £87,000 for this former sweetie shop.
0:49:28 > 0:49:33# Love is like candy on a shelf... #
0:49:34 > 0:49:38With a commercial unit downstairs and a one-bed flat above,
0:49:38 > 0:49:41he wanted to convert it to two two-bedroom flats
0:49:41 > 0:49:47and planning had previously been approved to do just this, but the permission had just lapsed.
0:49:47 > 0:49:50But he was a man of faith.
0:49:50 > 0:49:53I'm liaising with the local authority
0:49:53 > 0:49:57to see if we can carry on with the planning as some of it has started.
0:49:57 > 0:50:02- Right.- So, in effect, the planning should still stand.
0:50:02 > 0:50:04- And what are they saying? - Not yes or no.
0:50:04 > 0:50:11So did the local authority say yes? We're back three and a half months later to see
0:50:11 > 0:50:16if the sweet shop has been turned into something a little more savoury.
0:50:19 > 0:50:23Outside, the candy pink colour has gone
0:50:23 > 0:50:30and inside? The new entrance hall and stairway reveal that there are indeed two flats here now.
0:50:30 > 0:50:33Let's take a tour around the ground floor.
0:50:33 > 0:50:40Downstairs had been one large open space, which has now been divided with a living room to the front
0:50:40 > 0:50:45where previously the shop had been. Into the corridor leading from the living room,
0:50:45 > 0:50:50a new bathroom has been installed. From there, a long corridor runs the length of the building
0:50:50 > 0:50:52to the kitchen at the rear.
0:50:52 > 0:50:59The kitchen is in the existing position, but we reconfigured the entrance, which was the other side.
0:50:59 > 0:51:03We got rid of the small entrance lobby by the back door.
0:51:03 > 0:51:08And it's really opened the room up and a nice space. Quite pleased.
0:51:10 > 0:51:14Halfway along the corridor, two double bedrooms have been created.
0:51:14 > 0:51:18He has come up with some great ideas to flood them with natural light
0:51:18 > 0:51:21and make them feel extra spacious.
0:51:21 > 0:51:25This area here used to be the downstairs toilet.
0:51:25 > 0:51:28A bit pokey and a bit low. The roof was this high.
0:51:28 > 0:51:34So we've extended the roof up to provide more headroom, put in new windows for more light.
0:51:34 > 0:51:38The same goes for the room next door.
0:51:38 > 0:51:42The biggest job we had was putting the big steel beam through two rooms
0:51:42 > 0:51:47to hold the weight of the upstairs walls.
0:51:47 > 0:51:49I'm very pleased with the outcome.
0:51:51 > 0:51:57And what of the flat upstairs that's held up by that massive steel beam?
0:51:57 > 0:52:01Well, the old kitchen was far from functional, but look at it now.
0:52:01 > 0:52:07With all new units and appliances, it's become exactly what a kitchen should be - suitable for cooking in.
0:52:07 > 0:52:11He's installed a new central heating system to boot.
0:52:11 > 0:52:16The former living room at the front has been divided into two bedrooms,
0:52:16 > 0:52:18one single and one double.
0:52:18 > 0:52:24The former bedroom is now the living room and decorated in similar neutral tones to the rest.
0:52:24 > 0:52:31The bathroom has had a good old scrub. New flooring has helped freshen it up
0:52:31 > 0:52:37and although the previous suite remains, thankfully there's a new seat on the toilet. Much comfier.
0:52:37 > 0:52:42He's totally transformed this place and made really good use of space.
0:52:42 > 0:52:47It certainly seems as though the local council looked on it favourably.
0:52:47 > 0:52:52Planning permission was expired a week before I purchased it.
0:52:52 > 0:52:57I was in touch with the council. Some of the work had been carried out internally,
0:52:57 > 0:53:01which meant it would carry on as extant planning permission,
0:53:01 > 0:53:08which meant I didn't have to re-apply. With a few letters to the local authority, that was confirmed.
0:53:11 > 0:53:17There was another sweetener when it came to continuing the work of the original architect's plans.
0:53:19 > 0:53:25Well, I didn't have a set of drawings, so I looked on the local authority's website,
0:53:25 > 0:53:30because they had that planning permission. And I recognised the architect's name, Gerald,
0:53:30 > 0:53:34a chap I worked with years ago. I know where he lives,
0:53:34 > 0:53:40so I popped round and he had a set of scale plans I could have free, which he already had from before.
0:53:40 > 0:53:42So that was a result.
0:53:42 > 0:53:46# I should be so lucky So lucky, so lucky
0:53:46 > 0:53:49# I should be so lucky... #
0:53:49 > 0:53:53But it hasn't all been plain sailing.
0:53:53 > 0:53:58I had to get a new gas supply, two new gas supplies. There was no gas.
0:53:58 > 0:54:02Additional water supply and a new electric supply.
0:54:02 > 0:54:07Quite frustrating dealing with all the phone calls. Press button one, press button two...
0:54:07 > 0:54:13You're there for half an hour on the phone, several times for each one. Quite frustrating.
0:54:13 > 0:54:18# All this frustration All this frustration... #
0:54:18 > 0:54:23He's managed to complete the renovation pretty much on time.
0:54:23 > 0:54:30He's spent £20,000-£25,000 on the work, so just a little over his 20 grand estimate.
0:54:30 > 0:54:37That takes his total outlay, including the £87,000 purchase price, to around the £110,000 mark.
0:54:37 > 0:54:43He wants to rent these flats out, but is that the best way to reap the rewards here?
0:54:43 > 0:54:47We invited two local property experts along for their opinions.
0:54:49 > 0:54:56Well, it's a massive improvement. He's obviously raised the wall height by a few feet
0:54:56 > 0:54:59and put in these big Velux windows
0:54:59 > 0:55:04which have made great use of the space. He's done a fantastic job.
0:55:04 > 0:55:08I think the properties have been developed to a very high standard.
0:55:08 > 0:55:12Perfect either for the sales or the rental market.
0:55:12 > 0:55:16So what could be the monthly rental income of the two properties?
0:55:16 > 0:55:22I believe you could rent the ground floor flat at a rent of £500 per calendar month
0:55:22 > 0:55:26and the first floor flat at £475 per calendar month.
0:55:26 > 0:55:34I'd estimate the rental value of the first-floor apartment to be in the region of £475 per calendar month
0:55:34 > 0:55:39and the ground floor to be in the region of £500 per calendar month.
0:55:39 > 0:55:44The rental figure is roughly what I thought it would be and it's the market price here.
0:55:44 > 0:55:47I've already got people interested.
0:55:47 > 0:55:54That's very good news as is the potential rental yield of around 10.5%.
0:55:54 > 0:55:59But how much value has been added here in terms of the resale market?
0:55:59 > 0:56:03Remember, his total investment is around £110,000.
0:56:03 > 0:56:08I would estimate the value of the first-floor flat to be in the region of £80,000
0:56:08 > 0:56:12and the ground-floor flat to be in the region of £85,000.
0:56:12 > 0:56:17I think the ground-floor flat would sell on for £85,000
0:56:17 > 0:56:21and the first-floor flat for £80,000.
0:56:22 > 0:56:29Those figures would see a potential gross profit of around £55,000 before the usual deductions.
0:56:29 > 0:56:32Now that's what I call sweet.
0:56:32 > 0:56:36Will it entice him back to the auction room?
0:56:36 > 0:56:42I would go back to auction. It was a new experience for me. I've never bought at auction.
0:56:42 > 0:56:45But, yeah, I'm pleased with it. I might do it again.
0:56:48 > 0:56:52We hope you enjoyed watching and learnt some useful lessons.
0:56:52 > 0:56:57We'll see you next time for some more hot properties or maybe some that turn out to be lukewarm.
0:56:57 > 0:56:59- Bye bye!- Goodbye.
0:57:18 > 0:57:20Subtitles by Red Bee Media Ltd