Episode 26

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0:00:02 > 0:00:07Hello. The UK property auction market is worth billions of pounds every year.

0:00:07 > 0:00:12- Those are big numbers, but don't be put off.- Auctions are accessible to everyone

0:00:12 > 0:00:19and the auction room itself is a level playing field. All you need is some cash and some confidence.

0:00:44 > 0:00:50With thousands of lots going under the hammer each year, there's a huge choice at auctions.

0:00:50 > 0:00:57So here are the properties that our bidders put their hands up for at the auctions on today's show.

0:00:58 > 0:01:03This three-bed mid-terrace in Kent is a little on the skinny side.

0:01:03 > 0:01:07It's a little bit tight through here. Feels a bit squeezed.

0:01:08 > 0:01:14In Kirkcaldy, Fife, this two-bedroom cottage has access issues.

0:01:14 > 0:01:17Well, there's a first for everything!

0:01:18 > 0:01:25And in Maida Vale, London, this high-rise flat ticks all the right boxes.

0:01:25 > 0:01:29Once you've put your stamp on this property, it could be a really cool London pad.

0:01:29 > 0:01:34All of these properties have been sold at auction and we'll find out who bought them

0:01:34 > 0:01:38- when they went under the hammer. - Well done.

0:01:43 > 0:01:48Dartford in Kent is all about being connected.

0:01:48 > 0:01:53Not in the "knowing the right kind of people" way, but in a transport sense.

0:01:54 > 0:02:02Just outside London, but within the M25, it's commuter heaven with train stations galore.

0:02:02 > 0:02:06From Dartford you can get to London Bridge in 40 minutes.

0:02:06 > 0:02:10from nearby Ebbsfleet to St Pancras in only 17 minutes

0:02:10 > 0:02:13and Paris in just over two hours.

0:02:13 > 0:02:18So will the house I'm here to see be as well connected?

0:02:18 > 0:02:23What do you want from a property in a commuter town more than anything else?

0:02:23 > 0:02:27The train station a short walk away. And this road fits the bill.

0:02:27 > 0:02:34It's under a mile to Dartford station, which immediately makes this lot an interesting prospect.

0:02:34 > 0:02:41It's this three-bed house and it had a guide price of £135,000-£140,000.

0:02:42 > 0:02:45Although it's up on a hill, you haven't got great views,

0:02:45 > 0:02:49but you are elevated and feel removed from the bustle of the town.

0:02:51 > 0:02:57There's no off-street parking, but I quite like this front garden which separates you from the road.

0:02:57 > 0:03:01More to the point, it has what looks like new double glazing,

0:03:01 > 0:03:04but the pebble dash has seen better days.

0:03:04 > 0:03:10A little bit tired on the outside, but once you're inside, you have to look at the positives.

0:03:10 > 0:03:16Central heating, it's already been decorated, needs a tidy up, perhaps some new carpets.

0:03:16 > 0:03:20But a nice-sized lounge, a lovely big window there.

0:03:20 > 0:03:23You need to sort that fireplace out. It's an eyesore.

0:03:23 > 0:03:28A little bit tight through here. Is there anything you could do? It feels a bit squeezed.

0:03:28 > 0:03:31Dining room through there.

0:03:31 > 0:03:34Kitchen. Very disappointing. Far too small.

0:03:34 > 0:03:38I know I've said this a thousand times, but what would really work

0:03:38 > 0:03:42would be to knock this wall down, really open this space up.

0:03:42 > 0:03:47Kitchen/diner with access out onto the garden. Perfect.

0:03:47 > 0:03:52'It would offer a lot more flexibility as the kitchen's very narrow.

0:03:52 > 0:03:57'Creating a kitchen/diner would open up the house.

0:04:00 > 0:04:06'The garden needs a serious tidy up but it's the perfect size for a family.

0:04:06 > 0:04:10'Apart from the pebble dash, the condition looks good.

0:04:10 > 0:04:15'Upstairs in this mid-terrace that was guided at £135,000-£140,000,

0:04:15 > 0:04:18'the layout is classic 1930s.

0:04:20 > 0:04:25'At the back, there's a double bedroom, which houses the boiler and a bathroom.

0:04:25 > 0:04:31'I would definitely change the cistern in the loo, but the bath and basin look OK.

0:04:37 > 0:04:42'The smallest of the three bedrooms is fine for a child or, alternatively,

0:04:42 > 0:04:48'would make a great study. The bay-fronted master bedroom appears to be a good size,

0:04:48 > 0:04:50'but I've got a concern.'

0:04:50 > 0:04:56The bedroom. First impressions - great, but then, you know, just have a little think about it.

0:04:56 > 0:05:01Where is all your furniture going to go? You've got to visualise it.

0:05:01 > 0:05:07Your wardrobe space, you could fit in something here and here, but there's this big chimney breast.

0:05:07 > 0:05:11You could think about taking that out, but that's a mammoth job.

0:05:11 > 0:05:15You need to put in your chest of drawers, a mirror, all your clothes.

0:05:15 > 0:05:21Once you've done that, there isn't that much room to manoeuvre and walk around.

0:05:21 > 0:05:27And you can forget a big king-size bed. It's got to be double or quits.

0:05:28 > 0:05:33'Although the layout in these 1930s houses is fairly standard,

0:05:33 > 0:05:37'the room proportions do vary, depending on the size of the house.

0:05:37 > 0:05:43'A semi-detached house will have bigger-sized rooms than this mid-terrace.

0:05:45 > 0:05:49'But I wonder if there's any way you could make it even better?'

0:05:50 > 0:05:56So what are your options here? You don't need much more square footage to make the ground floor work.

0:05:56 > 0:05:59I'd love to see a single-storey extension on the back here.

0:05:59 > 0:06:04Then your living room can be a cosy, relaxing space.

0:06:04 > 0:06:10And the kitchen/dining room/kids' play area, you could open all of that onto the decent garden.

0:06:10 > 0:06:16But you will have to be careful. That could easily cost in excess of £10,000 to build.

0:06:16 > 0:06:20You wouldn't be adding that much more onto the value of the property.

0:06:20 > 0:06:26If it was me, I would definitely do it. I just can't see this house reaching its full potential

0:06:26 > 0:06:28without that extra space.

0:06:29 > 0:06:34'It will all come down to what the new owner plans to do with the house.

0:06:34 > 0:06:39'If they intend to live here, it may be worth extending,

0:06:39 > 0:06:43'but if it's a buy to let investment it's probably better to leave it.

0:06:43 > 0:06:47'We invited a local property expert to come and take a look around.'

0:06:47 > 0:06:50From the outside, it's very nice.

0:06:50 > 0:06:55Obviously, inside there's still work to be done to it,

0:06:55 > 0:06:59but central heating and double glazing has already been put in.

0:06:59 > 0:07:03What's the potential resale value after a refurbishment?

0:07:03 > 0:07:09I think in the condition it's in at the moment, you're looking at £150,000.

0:07:09 > 0:07:15If it was refurbished to a relatively high standard, perhaps more £180,000-£190,000.

0:07:16 > 0:07:22Once the house has been refurbished, how much rental income could it generate?

0:07:22 > 0:07:27I would expect this property would rent for £850 in good condition per calendar month.

0:07:28 > 0:07:34There's nothing really wrong with this house. On the contrary, it's a lot of space,

0:07:34 > 0:07:40so close to decent links to London. But it is surprisingly small for a three-bedroom house.

0:07:40 > 0:07:45And I think there's work to be done before a family can settle down comfortably for the long term.

0:07:45 > 0:07:49Still, it's a good one to go for. Let's see who agreed at the auction.

0:07:49 > 0:07:56This lot came up towards the end of the auction when most bidders had left.

0:07:56 > 0:08:00This is Lot 93. Mid-terrace, bay-fronted house.

0:08:00 > 0:08:02Got a guide of 135-140.

0:08:02 > 0:08:07Start me here at 135, bottom end of the guide. 135?

0:08:07 > 0:08:11Or 125, then? I don't mind. £125,000 to start me.

0:08:11 > 0:08:15125, thank you. At £125,000 I'm bid.

0:08:15 > 0:08:20128. And 130? 130. 132.

0:08:20 > 0:08:23135. 138, sir?

0:08:23 > 0:08:26138. And 140. 142.

0:08:26 > 0:08:28142. 145?

0:08:28 > 0:08:33145. 145 I'm bid. 148? 146.

0:08:33 > 0:08:36I don't mind. 147. 148.

0:08:36 > 0:08:40149. And 50. And 51?

0:08:40 > 0:08:42151. 152.

0:08:42 > 0:08:47I have 153. It's no good looking at him. I'm much better looking.

0:08:47 > 0:08:50153 I'm bid. 154?

0:08:50 > 0:08:53153 and a half.

0:08:53 > 0:08:54154?

0:08:56 > 0:09:01You might have clinched it! At £153,500 for the first time.

0:09:02 > 0:09:05He's out shaking his head.

0:09:05 > 0:09:07153 and a half for the second time.

0:09:07 > 0:09:12£153,500, third and final time.

0:09:12 > 0:09:14At £153,500...

0:09:14 > 0:09:18Sold at £153,500.

0:09:18 > 0:09:23So the hammer fell at £153,500,

0:09:23 > 0:09:30that final bid coming from a very relieved looking Steve, who was at the auction with his wife.

0:09:30 > 0:09:35They live in Orpington, Kent, where Steve works as a driver for a lift company.

0:09:43 > 0:09:47So to hear how he plans to elevate this property

0:09:47 > 0:09:52and why he decided to buy at auction, I met up with him at the house.

0:09:54 > 0:10:00Steve, congratulations. Well done. So why did you want to go to auction for this property?

0:10:00 > 0:10:04Just quick and simple. Easy as that, Lucy.

0:10:04 > 0:10:10- 30 days and you own the place. Lovely.- You like the simplicity. - That's it. Nice and easy.

0:10:10 > 0:10:14- You have to come up with the cash. - If you're not ready, you can lose your deposit.

0:10:14 > 0:10:19- Were you ready?- Yes.- Prepared. - We was completely ready to go.

0:10:19 > 0:10:22- Had you done your research? - Yeah, plenty.

0:10:22 > 0:10:27- Had you read the legal pack?- Yes. - Got the house surveyed?- No. - Why did you not get it surveyed?

0:10:27 > 0:10:33Didn't feel it needed. Couldn't see any cracks, doesn't look like any subsidence.

0:10:33 > 0:10:38- Everything that we can see needs doing is self-explanatory. - What sort of vision did you have?

0:10:38 > 0:10:44Quick in and out. Spend as little money as possible, but make it look really nice.

0:10:44 > 0:10:47So it's all about turning a profit?

0:10:47 > 0:10:51- Hopefully.- You wanted to get in quickly, do it up and then get out.

0:10:51 > 0:10:53Yeah, that's exactly right.

0:10:53 > 0:10:59'Something tells me that Steve's no-nonsense attitude will reap a profit as well.'

0:10:59 > 0:11:03# You're going up in the world You're going up in the world... #

0:11:03 > 0:11:07'But any profit will depend on how he maximises the potential.

0:11:07 > 0:11:14'Steve would rather sell this property on if the numbers work out. Otherwise, he'll rent it out.

0:11:14 > 0:11:18'But what are his refurbishment plans? His budget is £7,000,

0:11:18 > 0:11:23'but I think the layout definitely needs to change here.'

0:11:23 > 0:11:28We're just going to do the usual. Clean it up, make it nice, decorate it.

0:11:28 > 0:11:33- The kitchen and bathroom. - But you've got to do something more than that, I think.

0:11:33 > 0:11:40- I think you need to open some space up.- We'll look at everything. If we need a wall down, we'll do it.

0:11:40 > 0:11:47- Do you think you need a wall down? - Maybe in the kitchen.- I think definitely to open up that space

0:11:47 > 0:11:51will really be the family living area that you need here.

0:11:51 > 0:11:54If the wall needs to come down, it will.

0:11:54 > 0:12:01- Do you think that will be an expensive exercise?- Well, we'll do most of the labour ourselves,

0:12:01 > 0:12:06- so we'll keep it to a minimum. - Isn't it a small kitchen? - Very small.

0:12:06 > 0:12:12- Wouldn't you rather sit in a nice kitchen with an open dining space? - Definitely. We'll see the figures.

0:12:12 > 0:12:16- If it works, we'll take the wall down.- 'Oh, come on, Steve! Commit!

0:12:16 > 0:12:22'I want that wall down! Figures or no figures, that would be money well spent.

0:12:22 > 0:12:28'So Steve reckons it will be a quick in and out job, about three to four months,

0:12:28 > 0:12:34'and he's going to fit it in around his full-time job. So what sort of finish is he looking for?

0:12:34 > 0:12:38'I'm sure we're not talking gold taps and granite.

0:12:38 > 0:12:43'Most of the rooms have been stripped back, but what about the woodchip in the living room?'

0:12:44 > 0:12:51- We're gonna remove the woodchip, just for you.- Thank you! It will just look so much better without it.

0:12:51 > 0:12:55Yeah. We'll get the woodchip off. If the walls need re-skimming, we will.

0:12:55 > 0:13:00- And your budget for all this work? - £7,000.- Do you feel quite confident?

0:13:00 > 0:13:04- Everything you need to do here you can do yourself?- Mostly.

0:13:04 > 0:13:08- Have you renovated houses before? - I've done three or four of our own.

0:13:08 > 0:13:13- Are you quite confident to get in, do the work and get out? - We love making a mess!

0:13:13 > 0:13:18Steve, good luck with this project. Let's hope you stick to that £7,000.

0:13:18 > 0:13:21- I'll be asking. Nice to meet you. - And you, Lucy.

0:13:21 > 0:13:28If there's one thing I know for sure, it's that kitchen wall needs to come down.

0:13:28 > 0:13:34I can't believe Steve is still debating that. I do think he's got a great house,

0:13:34 > 0:13:39but I want him to make the right decisions and make money, not just mess!

0:13:39 > 0:13:41Find out what happens later in the show.

0:13:46 > 0:13:52I've come to the east coast of Scotland to Fife's largest town, Kirkcaldy,

0:13:52 > 0:13:58which sits on the Firth of Forth's northern shore. It has a rich history, a strong industrial past

0:13:58 > 0:14:00and some fine green spaces to boot.

0:14:00 > 0:14:03# It's all too beautiful... #

0:14:03 > 0:14:09This is the lovely Ravenscraig Park, home to the remains of Ravenscraig Castle.

0:14:09 > 0:14:13It's also the location of the property I'm here to see.

0:14:13 > 0:14:18A single-storey cottage at a guide price of £55,000-£60,000, right on the edge of the park.

0:14:18 > 0:14:22Views across the park out to the sea. I'm liking it already!

0:14:22 > 0:14:28# It's all too beautiful It's all too beautiful... #

0:14:30 > 0:14:36Well, it looks a bit shabby on the outside, but it's certainly on a good-sized plot.

0:14:36 > 0:14:38All I've got to do is try to get in.

0:14:38 > 0:14:41Well, that's the front door.

0:14:42 > 0:14:45That's not going to work.

0:14:45 > 0:14:48MUSIC: "Mission: Impossible" THEME

0:14:48 > 0:14:50'Hm, a bit of a mission getting in.'

0:14:50 > 0:14:53Never done this before.

0:14:55 > 0:15:01Well, I suppose there's a first for everything. Climbing through the patio door!

0:15:01 > 0:15:07Before I move on from the patio door, it makes the most of those views. Really good to see that.

0:15:07 > 0:15:11But actually, unfortunately, it doesn't get much better as you come in.

0:15:11 > 0:15:13It's in a right old state.

0:15:13 > 0:15:18We've got props holding up the ceiling, half-finished walls.

0:15:18 > 0:15:23I think it's a... rip it out and start again job.

0:15:23 > 0:15:31# If only I could start again And I'd start I'd start again with you... #

0:15:31 > 0:15:37'Well, starting again might be the best option here as things are in a state.

0:15:37 > 0:15:39'Will it improve elsewhere?'

0:15:39 > 0:15:44Er, no, it doesn't get any better here. Fingers crossed.

0:15:44 > 0:15:48No, it doesn't get any better here, either.

0:15:48 > 0:15:54I mean, it is a project that, to me, looks like somebody's started and not quite finished,

0:15:54 > 0:15:56for whatever reason.

0:15:56 > 0:16:02I suppose the good news is it's been cleared out, sort of, so you could put your own imprint on it.

0:16:02 > 0:16:09As long as you buy it for the right price and allow enough to sort it out, you shouldn't be put off.

0:16:09 > 0:16:13'You might be better off ripping out some of the work that's been started

0:16:13 > 0:16:16'and stamping your own mark on the place.

0:16:19 > 0:16:24'The size of the plot is big enough to extend outwards if not upwards, too,

0:16:24 > 0:16:26'with planning permission.

0:16:26 > 0:16:32'There's a derelict garage here which is odd because there's only pedestrian access through the park,

0:16:32 > 0:16:38'but you could find yourself stonewalled trying to get consents for off-street parking

0:16:38 > 0:16:42'as you'd need to remove part of the wall at the back of the cottage.

0:16:42 > 0:16:49'The wall is Category B listed, meaning it's of particular historic importance.

0:16:49 > 0:16:56'There is parking on the street and when you've got such beautiful views out front, who cares?

0:16:57 > 0:17:01'With a guide price of £55,000-£60,000,

0:17:01 > 0:17:06'we asked the auctioneer who sold it to come and tell us more about it.'

0:17:06 > 0:17:10It must be one of the most unique properties in this part of town.

0:17:10 > 0:17:13It's a lodge house

0:17:13 > 0:17:15standing in Ravenscraig Park.

0:17:15 > 0:17:19Some years ago it was sold by Fife Council to a property developer.

0:17:19 > 0:17:23They've started work, but haven't finished it.

0:17:23 > 0:17:29'That explains the bits and bobs done already. So let's talk investment options.

0:17:29 > 0:17:32'Would it make a viable rental?'

0:17:33 > 0:17:36If you tried to rent this property,

0:17:36 > 0:17:40you would probably be looking at £450-£500 a month.

0:17:41 > 0:17:44'What about the resale market?'

0:17:44 > 0:17:51I'd have thought when it's finished you're looking at about £120,000-£130,000.

0:17:51 > 0:17:57'What about the possibility of extending? What kind of resale could that achieve?'

0:17:57 > 0:18:02If you try to extend to the side or upwards, or both,

0:18:02 > 0:18:06I'd have thought you're getting on for £200,000.

0:18:06 > 0:18:10Well, yes, there's work to be done to sort this place out,

0:18:10 > 0:18:14but one thing's for sure - you can't knock the location. It's stunning.

0:18:14 > 0:18:19Let's see who fell in love with this when it went under the hammer.

0:18:20 > 0:18:23Right. Lot Three.

0:18:23 > 0:18:29Two-bedroom cottage requiring renovation. Where are we going to start? Somebody start me at £30,000.

0:18:29 > 0:18:31£30,000 anywhere?

0:18:31 > 0:18:3325 to get me started?

0:18:33 > 0:18:3825, thank you, sir. Sitting down. 20? OK, 20.

0:18:38 > 0:18:42We'll start off with 20. Any other bids? Thank you, sir. 22.

0:18:42 > 0:18:4524. 26.

0:18:45 > 0:18:4928. 30. 32. 34.

0:18:49 > 0:18:5236. 38.

0:18:52 > 0:18:5440?

0:18:54 > 0:18:5640. 42?

0:18:56 > 0:18:5842.

0:18:58 > 0:19:0244. He's shaking his head. With you, sir, at £42,000.

0:19:02 > 0:19:05Are we all done? Sorry, sir. I didn't see you.

0:19:05 > 0:19:0843. 44. 45.

0:19:08 > 0:19:1146. 47. 48.

0:19:11 > 0:19:1349. 50.

0:19:13 > 0:19:1551. 52.

0:19:15 > 0:19:1753?

0:19:17 > 0:19:1953? 54.

0:19:19 > 0:19:2055.

0:19:20 > 0:19:2356. 57. 58

0:19:23 > 0:19:2559. 59? 60.

0:19:25 > 0:19:28Can I go up in twos, sir? 62?

0:19:30 > 0:19:35Are you all done? At £60,000. The gentleman sitting down in the back.

0:19:35 > 0:19:40At £60,000. Going once, twice, third and final time.

0:19:41 > 0:19:47That successful bid of £60,000 was made by Craig on behalf of his friend, Caroline,

0:19:47 > 0:19:50who works as an advertising rep.

0:19:51 > 0:19:56I met Caroline and her builder Grant, who's Craig's brother, at the property

0:19:56 > 0:20:01to find out the plans for this rather empty shell.

0:20:01 > 0:20:04- Caroline, Grant, good to meet you both.- Hiya.- Congratulations.

0:20:04 > 0:20:07Why did you want to buy this place?

0:20:07 > 0:20:14I just thought the location was the thing. It was just an amazing location

0:20:14 > 0:20:21- with the sea and the park. - Quite an unusual property to find. - Actually inside a park. Definitely.

0:20:21 > 0:20:26- So tell me about you two. You're...? - I'm the builder. I get the job of doing the place up.- Yes.

0:20:26 > 0:20:30- Tell me a bit more about you. - I work at the local newspaper.

0:20:30 > 0:20:35- Oh, great.- Advertising rep. - Nothing to do with property.

0:20:35 > 0:20:40I've got a couple of places, though, so I am quite interested.

0:20:40 > 0:20:44- I do bits here and there.- Right. A bit of buy to let?- Yes.

0:20:44 > 0:20:51'Caroline's friend Craig didn't just do the bidding. He brought the property to her attention.'

0:20:51 > 0:20:57- So did you see it beforehand? - Just pictures and obviously from outside.- Right.

0:20:57 > 0:21:02- So you didn't come in.- I keeked in the windows.- You peeked in?- Yeah.

0:21:02 > 0:21:08- Any surprises when you saw it for the first time properly?- It was worse than I thought, definitely.

0:21:08 > 0:21:12- Would it have changed your mind to buy it?- Er...no, actually.

0:21:12 > 0:21:16Cos I think everything that's wrong with it is fixable.

0:21:16 > 0:21:23'I'm sure Caroline will fix this place right up and it's a bonus she has Grant to help with it,

0:21:23 > 0:21:28'but what exactly is she planning to do here?'

0:21:28 > 0:21:31I'm going to knock this wall down, make it more open-plan.

0:21:31 > 0:21:37The two bedrooms are a good size. Probably, hopefully, won't need too much done to them.

0:21:37 > 0:21:41The kitchen, sort of dining area, and then a lovely kitchen.

0:21:41 > 0:21:45Close off the patio door and make it just a normal window.

0:21:45 > 0:21:49I got a good bargain on a kitchen yesterday, so I'm quite excited.

0:21:49 > 0:21:55- You've bought your kitchen already? - Yep.- Tell me about the bargain. - It was just ex-display,

0:21:55 > 0:22:01- so I decided to go for it. - And how much was it?- Only £500. - How much should it be?- 2-3 grand.

0:22:01 > 0:22:07- Something like that.- Bargain! - Bargain.- And it happens to fit? - Almost within an inch of its life.

0:22:09 > 0:22:14'It's great that she's saving money already because there are plans afoot to get consent

0:22:14 > 0:22:17'to extend the property upwards.'

0:22:17 > 0:22:23We had the architect round yesterday and the thinking is to put two bedrooms up the stairs

0:22:23 > 0:22:27and an en suite. And then just leave the ground floor as it is.

0:22:27 > 0:22:33Obviously put in new walls. Well, insulation. Cut the floors, put a bit of insulation in it.

0:22:33 > 0:22:37And hopefully get a large garage with an office above it outside.

0:22:38 > 0:22:43'That office will certainly have an amazing view overlooking the park,

0:22:43 > 0:22:45'but what about the parking issue?'

0:22:45 > 0:22:51The biggest challenge of all is trying to get vehicular access through the wall outside.

0:22:51 > 0:22:57It's a bit awkward because it's listed B, so hopefully we'll get through there and be better for it.

0:22:57 > 0:23:02'I reckon unleashing the true potential here is all in the permissions.

0:23:02 > 0:23:06'But although Caroline first bought this as an investment property,

0:23:06 > 0:23:11'her enthusiasm tells me she may have changed her mind.'

0:23:11 > 0:23:15So what's the plan for it, then? Rent it out, sell it on? What?

0:23:15 > 0:23:19- I think I might be quite keen to move in.- Oh!

0:23:19 > 0:23:22I've got a good gut feeling that it'll look amazing

0:23:22 > 0:23:29- and I'd love to wake up to that every morning.- It's like the park is your garden.- Yeah, definitely.

0:23:29 > 0:23:35'Caroline's budget is £20,000-£25,000, but if they extend upstairs

0:23:35 > 0:23:37'it'll be around £35,000.

0:23:39 > 0:23:44'Grant will do a lot of the work himself, which will help to keep the costs down.

0:23:44 > 0:23:48'And they will also be calling in a few favours.'

0:23:48 > 0:23:53I've got lots of friends, family, willing to chip in and help out.

0:23:53 > 0:23:56So I'm hoping to come under budget.

0:23:57 > 0:24:01Hopefully. Got to keep a lid on him.

0:24:01 > 0:24:05- And what's the timescale for the work?- Em, 6-9 months.

0:24:05 > 0:24:09- Yeah.- The planning permission will take three months to come through.

0:24:09 > 0:24:13So three months after that should be about done.

0:24:13 > 0:24:19- Well, listen, congratulations. - Thanks.- Good luck. I really look forward to seeing how you get on.

0:24:19 > 0:24:21- Both of you.- Thanks very much.

0:24:21 > 0:24:28Well, it started out as an investment purchase, but Caroline has fallen in love with this place.

0:24:28 > 0:24:34And the plans - blimey! If she can get those through, this really will be an extraordinary property.

0:24:34 > 0:24:40A few hurdles to jump through before that. Find out how she gets on later in the show.

0:24:40 > 0:24:45Coming up. I'm positively taken by this London flat.

0:24:45 > 0:24:49Wow! On an even more positive note, what a lovely property to walk into.

0:24:50 > 0:24:56In Fife, Caroline's renovation of this two-bed cottage wows the auctioneer who sold it.

0:24:56 > 0:25:00I think it's absolutely amazing. What a transformation.

0:25:01 > 0:25:07But, first, renovating this Kent mid-terrace was like opening a can of worms.

0:25:07 > 0:25:12As soon as we got started, we realised it was a little bit worse than it looked.

0:25:14 > 0:25:18Back now to Dartford in Kent where earlier in the programme

0:25:18 > 0:25:23Steve, a driver with a lift company, bought this 1930s-style, three-bed mid-terrace

0:25:23 > 0:25:26for £153,500.

0:25:29 > 0:25:34# Lift me up When the lights are fading... #

0:25:34 > 0:25:41It was his first auction purchase, although he had renovated three or four properties before.

0:25:41 > 0:25:45No-nonsense Steve had done most of the homework before buying it.

0:25:45 > 0:25:49- Had you done your research? - Yeah, plenty.- Read the legal pack?

0:25:49 > 0:25:53- Yes.- Got the house surveyed?- No. - Why did you not get it surveyed?

0:25:53 > 0:25:58- Didn't feel it needed. - And what vision did you have? - A quick in and out.

0:25:58 > 0:26:02Spend as little money as possible, but make it look really nice.

0:26:05 > 0:26:10Well, it's now nearly four months later and we meet up again with Steve.

0:26:12 > 0:26:17The house has a new path and the pebble dash has had a facelift.

0:26:19 > 0:26:23The front living room has lost that fireplace.

0:26:23 > 0:26:29Magnolia walls, brown carpets and gloss paint have certainly freshened up the overall appearance.

0:26:33 > 0:26:38In the hall, the door to the kitchen has been bricked up.

0:26:41 > 0:26:48And at the back the former dining room has lost its fireplace and laminate wood flooring's been laid.

0:26:51 > 0:26:56I am delighted that Steve has taken my advice and removed the wall.

0:26:56 > 0:27:01It's created a lovely kitchen/diner and really opened this house up.

0:27:03 > 0:27:07But Steve's initial optimism for the place soon changed.

0:27:09 > 0:27:14As soon as we got started, we realised it was worse than it looked. We took the woodchip off

0:27:14 > 0:27:18and the plaster came off, and when the carpets came up,

0:27:18 > 0:27:24we noticed there was woodworm in the dining room, but we just cut it all out, treated the floors

0:27:24 > 0:27:27and carried on.

0:27:27 > 0:27:33It was a lot more work than Steve had anticipated, meaning that survey might have been a good idea.

0:27:33 > 0:27:38He had to cure the damp in the dining room and then replaster,

0:27:38 > 0:27:44but once the problems were treated, the new layout of the house could then take shape.

0:27:44 > 0:27:50We decided quite early on to take the wall down as it did make sense. We just got on with it and done it.

0:27:52 > 0:27:58I'm sure he'd have reached that conclusion anyway, but I'm glad he listened to me.

0:27:58 > 0:28:04Upstairs, the three bedrooms have been decorated and the fireplaces have been removed

0:28:04 > 0:28:08from the two large bedrooms. The boiler is now sited more compactly.

0:28:08 > 0:28:15There were problem areas all over the house and renovating the bathroom was far from clear-cut.

0:28:17 > 0:28:21There was all sorts of things. Pipework in walls...

0:28:21 > 0:28:25It just took me so much longer to do the bathroom than we expected,

0:28:25 > 0:28:31but we're more or less there. A few more jobs to finish off, but it's almost there.

0:28:32 > 0:28:36At the back, the wall has also been painted.

0:28:36 > 0:28:41The fences have been put up all around the garden which will be laid to lawn

0:28:41 > 0:28:43with a paved patio area next to the house.

0:28:43 > 0:28:47The old kitchen door has been sealed up and replaced with a window

0:28:47 > 0:28:51with garden access through the dining area's double doors.

0:28:51 > 0:28:56Steve reckons he has spent about £600 getting professional advice

0:28:56 > 0:28:59and having the wall removed in the dining room

0:28:59 > 0:29:04and a further £1,600 on the kitchen, although he fitted it himself.

0:29:04 > 0:29:07So did his budget go through the roof?

0:29:08 > 0:29:13Our budget was 7,000, but we actually went over and ended up at about 8,500.

0:29:13 > 0:29:18We've done a lot more work due to the plastering and due to the garden work.

0:29:19 > 0:29:25That £8,500 on top of £153,500 he paid at auction

0:29:25 > 0:29:30takes Steve's total outlay to £162,000.

0:29:30 > 0:29:34Having quit his full-time job, for the last couple of months,

0:29:34 > 0:29:37he's been able to spend most days here.

0:29:38 > 0:29:42So is it actually starting to feel like home?

0:29:42 > 0:29:46I am thinking about moving in, but I've not decided yet.

0:29:46 > 0:29:50Time to see what two local property experts think of the finish

0:29:50 > 0:29:53that Steve has achieved here.

0:29:53 > 0:29:55He's certainly done a lot of work to it.

0:29:55 > 0:29:59It's very nice to see new carpets and the walls all looking nice and clean.

0:29:59 > 0:30:01The kitchen is nice and modern,

0:30:01 > 0:30:05got very nice units in there that will appeal to most people.

0:30:05 > 0:30:10The property has been refurbished to a fairly good standard.

0:30:10 > 0:30:16Fairly neutral throughout. The kitchen has benefited from being opened up into the dining area.

0:30:16 > 0:30:21The bathroom has been refurbished to a good standard. I like the choice of tiles.

0:30:21 > 0:30:26And if he decides to let the house out, how much income could that generate?

0:30:26 > 0:30:30The rental value for this property would be £700 to £800 per calendar month.

0:30:30 > 0:30:36If we were to market the property for rental, the owner could ask as much as £900 per calendar month.

0:30:36 > 0:30:40That's a yield of about 5 to 6.5%.

0:30:40 > 0:30:45Yeah, the rental's OK. If we decide to go down the rental route, that's always handy to know.

0:30:45 > 0:30:51What about re-sale? Is it worth more than the 162,000 Steve spent?

0:30:52 > 0:30:54If I was to sell this property,

0:30:54 > 0:30:59I think you would be looking to achieve approximately £180,000, £190,000.

0:30:59 > 0:31:04I would suggest a marketing price in the region of £180,000 to £185,000.

0:31:05 > 0:31:12So, a potential gross profit of between 18,000 and 28,000. Is Steve pleased?

0:31:12 > 0:31:14I think they're both about right.

0:31:14 > 0:31:18I think the place is probably worth about 180,000.

0:31:18 > 0:31:22We had done our research before we started, so it's all about right.

0:31:22 > 0:31:27Since filming, Steve says he's 90% sure he's going to rent it out,

0:31:27 > 0:31:32so despite the problems he's unearthed, is he happy with this project?

0:31:32 > 0:31:35We have enjoyed it. I need a little bit of a break.

0:31:35 > 0:31:39I probably will go back and buy something else from auction later in the year.

0:31:49 > 0:31:52This is the West London area of Maida Vale,

0:31:52 > 0:31:59a place very much in demand where the average price of a flat is a whopping 490,000

0:31:59 > 0:32:04and a house, well, that would set you back on average a cool three million quid.

0:32:04 > 0:32:09I'm sorry. I won't be showing you any million-pound properties today.

0:32:09 > 0:32:14I am here to see a more affordable one-bedroom flat on this busy A-road.

0:32:14 > 0:32:18Now, it's in this tower block. It might not be to everyone's taste,

0:32:18 > 0:32:20but I'm fairly positive about this one.

0:32:20 > 0:32:25It's in a fabulous location. It's close to the Tube station.

0:32:25 > 0:32:31The block is being developed and there is a 24-hour porter here, so that comes in extremely handy.

0:32:31 > 0:32:36So, come on, come on, how much for a one-bed flat in Maida Vale in London?

0:32:36 > 0:32:39How does £225,000 grab you?

0:32:40 > 0:32:45# Your love keeps lifting me higher

0:32:46 > 0:32:49# Than I've ever been lifted before... #

0:32:49 > 0:32:53With property buyers' love for this area of London,

0:32:53 > 0:32:56unlike other places in the country, prices are still strong

0:32:56 > 0:33:01and with this building undergoing an upgrade to its windows and balcony doors,

0:33:01 > 0:33:07I'm hopeful that the 12th floor one-bed flat up for auction could also see an uplift in its value.

0:33:07 > 0:33:12On a positive note, I would like to say how secure this block feels.

0:33:12 > 0:33:17It's wonderful to have a 24-hour concierge downstairs, lifts that work

0:33:17 > 0:33:20and...wow, on an even more positive note,

0:33:20 > 0:33:23what a lovely property to walk into!

0:33:23 > 0:33:28It feels bright and sunny. There are huge windows with a cracking view.

0:33:28 > 0:33:33Wow, that's quite incredible! It feels open, it feels light, it feels airy.

0:33:33 > 0:33:38Once you've put your stamp on this property, it could be a really cool London pad.

0:33:38 > 0:33:43But sadly, it's far from cool at present with dated electric storage heating

0:33:43 > 0:33:45and a tired, cluttered old kitchen.

0:33:50 > 0:33:54The rather shabby bedroom is divided from the lounge by folding doors

0:33:54 > 0:33:56that definitely need replacing.

0:34:01 > 0:34:06And the bathroom that's situated off the bedroom needs a complete overhaul.

0:34:07 > 0:34:13But despite the netting to prevent the pigeons flying in, it does have great views all round,

0:34:13 > 0:34:15especially from the balcony.

0:34:15 > 0:34:19# There's a gentleman that's going round, turning the joint upside down

0:34:19 > 0:34:21# Stool pigeon, ha-cha-cha... #

0:34:21 > 0:34:25As much as I like to see building maintenance being carried out,

0:34:25 > 0:34:31it does tend to worry me when I'm viewing auction properties. Look at all that scaffolding down there!

0:34:31 > 0:34:36Remedial work to a block like this could run into hundreds of thousands of pounds,

0:34:36 > 0:34:40and someone taking this on could be hit with part of that bill.

0:34:40 > 0:34:45My advice - have your solicitor check this out thoroughly before going to the auction.

0:34:45 > 0:34:51Best case scenario, it's already been paid for and you benefit from the works being carried out.

0:34:51 > 0:34:57Worst case scenario, you're hit with a whopping great maintenance bill you didn't budget for.

0:34:57 > 0:35:00Now, that wouldn't make anybody happy.

0:35:00 > 0:35:02# Don't make me sad

0:35:02 > 0:35:05# Don't make me sad... #

0:35:05 > 0:35:11This is definitely one of those property purchases where reading the legal pack is a must.

0:35:11 > 0:35:14It's clear that extensive work is being carried out,

0:35:14 > 0:35:20but although it looks like the windows and balcony door have been done in this flat,

0:35:20 > 0:35:24it doesn't necessarily mean that the work has already been paid for.

0:35:24 > 0:35:30This is a leasehold flat with a nice, long lease of 94 years left to run, so that's great news.

0:35:30 > 0:35:32The bad news is the service charge.

0:35:32 > 0:35:37It's quite high. It's set at £2,600 a year.

0:35:37 > 0:35:41That works out at roughly £216 a month.

0:35:41 > 0:35:48It's quite a large sum, but it does cover heating, water bills and pays for the 24-hour porter service.

0:35:48 > 0:35:52It also goes towards the upkeep of the communal parts

0:35:52 > 0:35:56and makes sure those all-important lifts are working. Perfect!

0:35:56 > 0:36:01But is high-rise living really what people who move to Maida Vale want?

0:36:01 > 0:36:05What does a local estate agent think of this flat?

0:36:05 > 0:36:08Does it need big changes?

0:36:08 > 0:36:10I would think leave it very simple.

0:36:10 > 0:36:13I think the layout is as it is.

0:36:13 > 0:36:16It's a single person's property -

0:36:16 > 0:36:22new kitchen, new bathroom, a basic refurb. That's all you need to do, really.

0:36:22 > 0:36:25This flat was guided at 225,000,

0:36:25 > 0:36:29so if a good quality upgrade was achieved,

0:36:29 > 0:36:33what kind of rental return could we expect to see?

0:36:33 > 0:36:37I would say I could put this on the market for about £1,600 a calendar month.

0:36:37 > 0:36:39And re-sale values?

0:36:39 > 0:36:43I would say about £385,000, £395,000.

0:36:43 > 0:36:46Wow, the prices round here really are sky-high!

0:36:46 > 0:36:51And it looks as though, refurbished to a decent level, this flat is no exception.

0:36:53 > 0:36:58It's a lovely flat with fabulous views in a great location.

0:36:58 > 0:37:00What is not to like?

0:37:00 > 0:37:04Well, the high service charge may put some people off.

0:37:04 > 0:37:10Then there's the issue with the remedial works. Does the new owner have to contribute?

0:37:10 > 0:37:16A few things to iron out and accept, but if you get over that lot, this one could be a winner.

0:37:16 > 0:37:19Let's see who fancied it when it went to auction.

0:37:23 > 0:37:26Right, Lot 68

0:37:26 > 0:37:30is a one-bedroom flat, again a great location along Maida Vale.

0:37:30 > 0:37:33A hot location.

0:37:33 > 0:37:37Start at 200? I'm not going to go below 200. 205?

0:37:37 > 0:37:39205. 210.

0:37:39 > 0:37:40215.

0:37:40 > 0:37:42220.

0:37:42 > 0:37:44225.

0:37:44 > 0:37:46230. 235.

0:37:48 > 0:37:50240. 245.

0:37:50 > 0:37:51250.

0:37:51 > 0:37:54255. 260?

0:37:54 > 0:37:56Yeah? 265. I'm coming to you.

0:37:56 > 0:37:58270. 275.

0:37:58 > 0:38:00280.

0:38:00 > 0:38:03285. 290...

0:38:03 > 0:38:05290 in the front.

0:38:05 > 0:38:08295.

0:38:08 > 0:38:09300.

0:38:09 > 0:38:12305.

0:38:12 > 0:38:13310.

0:38:13 > 0:38:15310, yeah...? 315?

0:38:15 > 0:38:17315, new spot. 316?

0:38:20 > 0:38:22317. 318.

0:38:22 > 0:38:23319.

0:38:23 > 0:38:25320.

0:38:25 > 0:38:27321.

0:38:27 > 0:38:28322.

0:38:28 > 0:38:33Good. It's cheap at 322. At 323. 324?

0:38:34 > 0:38:36324. 325?

0:38:36 > 0:38:39325...?

0:38:39 > 0:38:44324 down here, first time, second time, third and last time.

0:38:44 > 0:38:47Are you all done...? Sold, 324. Well done.

0:38:47 > 0:38:53'So, for 324,000, nearly £100,000 over the guide price,

0:38:53 > 0:38:56'the successful bidder was Reza.

0:38:56 > 0:39:00'He works in the financial markets, trading shares and commodities.

0:39:00 > 0:39:06'Although this is his first property purchase, his mother and sister own buy-to-lets in this block

0:39:06 > 0:39:09'and he's been trying to get his own flat here for a while.'

0:39:09 > 0:39:11# You can get it if you really want

0:39:11 > 0:39:15# But you must try, try and try

0:39:15 > 0:39:17# Try and try

0:39:17 > 0:39:21# You'll succeed at last... #

0:39:23 > 0:39:26Reza, congratulations. This is really good news.

0:39:26 > 0:39:29How desperately did you want to buy this at auction?

0:39:29 > 0:39:33Well, I've tried to buy a flat in this building three times now

0:39:33 > 0:39:35and this is the third time lucky.

0:39:35 > 0:39:39This one came in the auction and it was a much better price.

0:39:39 > 0:39:43It just needed a bit more work to do, so I felt it was a good decision.

0:39:43 > 0:39:47So were there any surprises for you on auction day?

0:39:47 > 0:39:52The major surprise was when we found out afterwards that I have to pay 1% of the seller's costs.

0:39:52 > 0:39:58That is something that everybody should be aware of now because it's becoming more and more common

0:39:58 > 0:40:04and it's not always stated somewhere where you can see it. That is why it is important to read the legal pack.

0:40:04 > 0:40:06That's the experience I learned.

0:40:06 > 0:40:11I'll ask the auctioneer whether we pay the seller's costs and I'll check with the lawyers.

0:40:11 > 0:40:15- You got your fingers burned, but it's a lesson learned.- Yeah. - Good stuff.

0:40:15 > 0:40:18I paid 3,000 quid extra, but it's worth it really.

0:40:18 > 0:40:23'That old mantra of "read the legal pack" was definitely applicable here

0:40:23 > 0:40:27'with a 1% seller's fee that Reza found he had to pay.

0:40:27 > 0:40:29'That meant an additional three grand.

0:40:29 > 0:40:35'As if that wasn't enough, he also had to pick up a £800 maintenance bill for the new windows,

0:40:35 > 0:40:42'but on the plus side, he got the flat for £35,000 less than the one he had previously made a offer on,

0:40:42 > 0:40:47'so all in all, his persistence to get a flat here has paid off.'

0:40:47 > 0:40:51So have you bought this for yourself to live in or for rental purposes?

0:40:51 > 0:40:54For myself, initially. I'll live in it.

0:40:54 > 0:41:02In the meanwhile, I'll raise more money for another flat and maybe build a small property empire.

0:41:02 > 0:41:05- So you've got high hopes? - I hope so, yeah.

0:41:05 > 0:41:09In my job, you might lose money or gain money, but this is good

0:41:09 > 0:41:13because you buy an asset and it's tangible and you can improve it

0:41:13 > 0:41:17and it keeps its value much better than our trading jobs.

0:41:17 > 0:41:20'But to make most investments grow, you need to improve and upgrade.

0:41:20 > 0:41:24'Although Reza will employ a builder to carry out the work,

0:41:24 > 0:41:26'this is his first property project,

0:41:26 > 0:41:32'so he needs to calculate how to turn it into both an investment and a home. Help is close at hand.'

0:41:32 > 0:41:37# I'll be there to lend a... #

0:41:37 > 0:41:41What do your mum and sister think? They've got a property in this building.

0:41:41 > 0:41:47They have a lot of ideas on how to do it up because they've done it before and in their own way.

0:41:47 > 0:41:53Like my mum got an electric shower and it saved her £5,000 instead of getting a new boiler.

0:41:53 > 0:42:00So that's been quite helpful and they just give me handy tips on how to do the flat, really.

0:42:00 > 0:42:06Are you going to change the layout at all? At the moment, it's open-plan, which I love, very light.

0:42:06 > 0:42:10On a beautiful day like today, that is the most stunning view.

0:42:10 > 0:42:13I'm going to keep the layout probably the same.

0:42:13 > 0:42:18Just keep the layout the same and then just do some cosmetic changes

0:42:18 > 0:42:21like get a new kitchen in,

0:42:21 > 0:42:23just sand the floor

0:42:23 > 0:42:27and just tidy up the doors and a new bathroom

0:42:27 > 0:42:31and get new furniture which we can order very quickly.

0:42:32 > 0:42:35'With a £10,000 to £15,000 budget

0:42:35 > 0:42:41'and a four to six-week timescale, Reza plans to get cracking straight away.'

0:42:41 > 0:42:45- Reza, this is very exciting. Good luck.- Thank you very much.

0:42:45 > 0:42:49A-ha, third time lucky then for Reza and by buying at auction,

0:42:49 > 0:42:53he saved himself £35,000 in the process.

0:42:53 > 0:42:57You can find out how he gets on later in the programme.

0:43:00 > 0:43:05Well, we wait patiently for our purchasers to do the work on their properties

0:43:05 > 0:43:08and sometimes they make a wonderful job of it.

0:43:08 > 0:43:14- And sometimes, Martin, they don't do anything.- So what will be the stories with today's properties?

0:43:17 > 0:43:24'Back now to the Kingdom of Fife in Scotland and this two-bed, single-storey cottage in Kirkcaldy,

0:43:24 > 0:43:27'which was bought at auction for £60,000.

0:43:27 > 0:43:33'Sitting inside a beautiful park, it has spectacular views right out to the sea.

0:43:33 > 0:43:36'The cottage itself was in a pretty poor state

0:43:36 > 0:43:39'with evidence of a renovation started and then abandoned,

0:43:39 > 0:43:43'but Caroline and her builder Grant were all set for the task ahead

0:43:43 > 0:43:47'and Caroline was quick off the mark to snap things up for the place.'

0:43:47 > 0:43:51I got a good bargain on a kitchen yesterday, so I'm excited about that.

0:43:51 > 0:43:57- You've bought your kitchen already? - Yeah.- Tell me about the bargain. - It was just an ex-display.

0:43:57 > 0:44:01- So I decided just to go for it. - How much was it?- Only £500. - How much should it have been?

0:44:01 > 0:44:05- Two, three grand, something like that.- A bargain!

0:44:05 > 0:44:09- And it just happens to fit?- Yeah, almost within an inch of its life.

0:44:09 > 0:44:15Caroline was going to apply for planning permission to create two bedrooms in the loft space

0:44:15 > 0:44:21and to knock a hole in the listed wall behind the house for off-street parking.

0:44:21 > 0:44:27She had a six to nine-month timescale and a budget of £20,000 to £25,000, increasing to £35,000

0:44:27 > 0:44:30if she got permission for the loft conversion.

0:44:30 > 0:44:33- # Come on, come on!- Come on, come on! - Come on... #

0:44:33 > 0:44:41OK, that's enough chat. 17 months after our first visit, we're back to see what's happened.

0:44:42 > 0:44:47# A little less conversation, a little more action, please

0:44:47 > 0:44:51# All this aggravation ain't satisfactioning me

0:44:51 > 0:44:55# A little more bite and a little less bark, a little less fight and a little more spark

0:44:55 > 0:45:00- # Close your mouth and open up your heart and, baby, satisfy me - Satisfy me!- Satisfy me... #

0:45:01 > 0:45:05Well, there's certainly been plenty of activity here.

0:45:05 > 0:45:09The ex-display kitchen does look as though it was made for the space

0:45:09 > 0:45:13and the house now makes the very best of those stunning views.

0:45:13 > 0:45:19Well, we had a big wall here that made the place very, very dark, so that's all gone.

0:45:19 > 0:45:24And we had a double patio door which we've doubled again, so it lets in all this light,

0:45:24 > 0:45:28then we've put the decking on the outside which is just...

0:45:28 > 0:45:32I love it, I absolutely love the decking and it takes in the views of the park.

0:45:32 > 0:45:35# Parklife... #

0:45:35 > 0:45:41With a new roof and a coat of paint throughout, the cottage really does look the business.

0:45:41 > 0:45:44The planning permission for the loft conversion was rejected,

0:45:44 > 0:45:49but Caroline is more than happy with the layout they've achieved.

0:45:49 > 0:45:55We were going to go up to four bedrooms if that was a possibility, just to make it a little bit bigger.

0:45:55 > 0:45:59However, it wasn't to be, so we were quite happy to stick to two bedrooms.

0:45:59 > 0:46:04It's a really brilliant-sized house as it is, so we were quite happy to keep it to that.

0:46:04 > 0:46:10Caroline was also denied permission to create access for a car through the listed wall behind.

0:46:10 > 0:46:14But there is a new opening to the back door

0:46:14 > 0:46:20and with parking on the street right outside, that's really not so much of an issue any more.

0:46:20 > 0:46:23It took the best part of a year to go through planning,

0:46:23 > 0:46:29but once they did get started, the work was completed in just over six months

0:46:29 > 0:46:32with Caroline's builder Grant pulling out all the stops.

0:46:32 > 0:46:37Grant was involved in, you know, the drawings

0:46:37 > 0:46:41and he was on site the majority of the time,

0:46:41 > 0:46:44so he was pretty much hands-on.

0:46:44 > 0:46:48He's away on another job at the moment, so that's why he's not here,

0:46:48 > 0:46:54but yeah, he's really kind of taken on board most of the hard work.

0:46:57 > 0:47:00There is still a little bit of landscaping to do,

0:47:00 > 0:47:04but the plot here is smaller than the first time we visited,

0:47:04 > 0:47:08so could it be that Caroline has an ace up her sleeve?

0:47:08 > 0:47:14We didn't think that this particular house needed as much space as it actually had,

0:47:14 > 0:47:17so we've fenced off a border

0:47:17 > 0:47:21and we've created another space to the side

0:47:21 > 0:47:25which we will do something with in the future, but I'm not sure what.

0:47:25 > 0:47:29It might be a holiday home or another house.

0:47:29 > 0:47:34You know, I've not decided yet, but at least there's a space there to do something with.

0:47:34 > 0:47:38The planning issues Caroline had did push her over schedule,

0:47:38 > 0:47:41but how has she done on the budget front?

0:47:41 > 0:47:46The original budget was literally a guestimate. I think we said 20,000.

0:47:46 > 0:47:51Realistically, it's closer to 30, so a little bit over,

0:47:51 > 0:47:57but still within a reasonable amount of money, I think, still to do it.

0:47:57 > 0:48:02Caroline's spend of £30,000, added to her purchase price of £60,000,

0:48:02 > 0:48:06brings her total outlay here to £90,000.

0:48:08 > 0:48:11We asked along two local property experts

0:48:11 > 0:48:14to tell us what they make of the cottage now.

0:48:14 > 0:48:19It's amazing. What a transformation from when we saw it originally!

0:48:19 > 0:48:21They've done a really nice job.

0:48:21 > 0:48:23It's so bright. It's brilliant.

0:48:23 > 0:48:26It's in a great location with great sea views.

0:48:26 > 0:48:28It's nice, bright and spacious.

0:48:28 > 0:48:33That's a pretty good start, so what do they think the property could sell for?

0:48:35 > 0:48:42Well, a two-bed house in this area appears to be going for between £160,000 and £190,000.

0:48:42 > 0:48:47Generally speaking, I think it would tend towards the lower end of that bracket

0:48:47 > 0:48:49because the bedrooms are quite small,

0:48:49 > 0:48:52but with the right person who likes the location,

0:48:52 > 0:48:56you might get towards the top end of that bracket.

0:48:56 > 0:48:59This property could achieve in the region of £150,000.

0:48:59 > 0:49:02I'm delighted with that. Very good.

0:49:02 > 0:49:07I was kind of thinking about the 140 mark, so that's even better than what I was thinking.

0:49:09 > 0:49:15The experts' valuations could mean a pre-tax profit of between £60,000 and £100,000 for Caroline,

0:49:15 > 0:49:18which is fantastic.

0:49:18 > 0:49:20What about renting the house out?

0:49:20 > 0:49:26In the area, two-bedroom properties appear to be attracting rentals of around £600 per calendar month.

0:49:26 > 0:49:30Having said that, this property has got this unique location

0:49:30 > 0:49:35and you might get lucky and find somebody who would pay more than that.

0:49:35 > 0:49:38This property could achieve £600 per calendar month.

0:49:38 > 0:49:43Those rental valuations would mean a yield of 8%, possibly more, which again is great news.

0:49:43 > 0:49:48If she had got planning permission to extend, Caroline was going to move in,

0:49:48 > 0:49:51but her plan now is to put the house up for sale.

0:49:51 > 0:49:57So with the benefit of hindsight, would she recommend the process of buying at auction, then renovating?

0:49:57 > 0:50:03As long as you go in with your eyes open and you're prepared to start at the very beginning and work through,

0:50:03 > 0:50:08rather than going from A to Z in a hurry, it's definitely worthwhile doing it.

0:50:13 > 0:50:17In the West London area of Maida Vale, it seemed things were on the up

0:50:17 > 0:50:22and where better to buy in a high-price property market than in a high-rise block?

0:50:22 > 0:50:27And that's exactly what shares and commodities trader Reza thought

0:50:27 > 0:50:34when he purchased a one-bed flat on the 12th floor of this high rise for 324,000.

0:50:34 > 0:50:38He hoped that with a little investment he could reap a decent return.

0:50:38 > 0:50:41In my job, you might lose money or gain money,

0:50:41 > 0:50:47but this is good because you buy an asset and it's tangible and you can improve it

0:50:47 > 0:50:50and it keeps its value much better than our trading jobs.

0:50:50 > 0:50:55With both his mother and sister owning rental flats in the same block,

0:50:55 > 0:51:01he was hoping to turn his first property purchase not only into a good investment, but also his home.

0:51:01 > 0:51:05But this flat came with its own ups and downs.

0:51:05 > 0:51:07# Upside down you're turning me... #

0:51:07 > 0:51:11The ups were that it only needed cosmetic work,

0:51:11 > 0:51:15had a 24-hour reception service, working lifts, a long lease

0:51:15 > 0:51:18and a fantastic view across London.

0:51:19 > 0:51:23The downs were it came with a seller's fee of 3,000

0:51:23 > 0:51:25and a maintenance bill of £800,

0:51:25 > 0:51:29then there was an annual service charge of £2,600.

0:51:29 > 0:51:34Reza hoped to get the work carried out for 10 to 15 grand

0:51:34 > 0:51:36and get it all done in a month and a half,

0:51:36 > 0:51:39so he really had to get on with it.

0:51:42 > 0:51:45Now, just under two months later, we're back.

0:51:47 > 0:51:52And with the maintenance work clearly moving on apace,

0:51:52 > 0:51:57the exterior of the whole block is steadily being improved with new windows and doors,

0:51:57 > 0:52:01but how has Reza fared sorting the interior of the flat?

0:52:01 > 0:52:05Well, the lounge and bedroom have been given a lick of paint

0:52:05 > 0:52:07and the floors sanded and polished.

0:52:07 > 0:52:13But it's in the bathroom and the kitchen where the main changes have taken place.

0:52:15 > 0:52:20There's a new bathroom suite complete with electric shower...

0:52:22 > 0:52:27..and a fitted kitchen with all modern appliances.

0:52:28 > 0:52:34Well, the kitchen, we went with the supplier and he showed us on the software how to design the kitchen

0:52:34 > 0:52:36and fit it in, given the space constraints.

0:52:36 > 0:52:40We're really happy with it and the project manager did a fantastic job

0:52:40 > 0:52:44of implementing the kitchen designs, so we're really happy with it.

0:52:44 > 0:52:50So, a big improvement in the kitchen and, generally, the whole flat has been spruced up.

0:52:50 > 0:52:55But it seems most of what first-time property refurbisher Reza has and hasn't done here

0:52:55 > 0:52:58was on the advice of his mother and sister.

0:53:02 > 0:53:08They've each been through the process from the beginning to the end in their own flats, so they helped me

0:53:08 > 0:53:10with recommendations like rewiring

0:53:10 > 0:53:15and what sort of painting we need to do for the walls and the flooring as well.

0:53:15 > 0:53:21They just recommended to sand it and polish it, not to get a new floor

0:53:21 > 0:53:23which would have been more expensive

0:53:23 > 0:53:27and just to keep the door between the bedroom and the living room

0:53:27 > 0:53:32because it's good quality wood and it's fine to just keep it like that,

0:53:32 > 0:53:37as opposed to having a wall and a new door through it. It would cost you much more.

0:53:37 > 0:53:39# I like it like this... #

0:53:40 > 0:53:44So the changes have been made very much with Reza's investment hat on,

0:53:44 > 0:53:50holding the costs down by keeping the doors, floors and storage heating system.

0:53:50 > 0:53:55But I guess he must be happy with this as it's also going to be his new home.

0:53:56 > 0:54:00I'm hoping to move in in the next couple of weeks.

0:54:00 > 0:54:06It's a new flat, everything is new, appliances are new and furniture as well,

0:54:06 > 0:54:11so I'm looking forward to it, really, getting the independence.

0:54:11 > 0:54:17In total, the work here took about seven weeks, which is very slightly longer than he had planned.

0:54:17 > 0:54:21How much of his £10,000 to £15,000 budget did he spend?

0:54:21 > 0:54:2313... £13,000.

0:54:24 > 0:54:29Well, a £13,000 spend, plus the purchase price and seller's fees

0:54:29 > 0:54:34totalling 327,000, plus the maintenance cost of 800 quid,

0:54:34 > 0:54:38makes Reza's current outlay just short of 341,000.

0:54:38 > 0:54:46Has he done enough to raise the value of his investment? What do two local estate agents reckon?

0:54:46 > 0:54:49It's come on quite well. It's a good, basic refurb,

0:54:49 > 0:54:51but it's clean, tidy and ready to go.

0:54:51 > 0:54:55I like the property. It's been done neutrally,

0:54:55 > 0:54:57so it would suit a lot of people.

0:54:57 > 0:55:03You've got wonderful views across London. It's a very nice flat in a very nice block.

0:55:03 > 0:55:06Reza was planning to live in the flat for a while,

0:55:06 > 0:55:10then he was looking to put it on the rental market later.

0:55:10 > 0:55:14For renting, somewhere in the region of £1,600 per calendar month.

0:55:14 > 0:55:20I would look to rent this, to put this on the market at £1,650 per calendar month.

0:55:20 > 0:55:25Initially, we thought about 1,300,

0:55:25 > 0:55:28but 1,600 to 1,650 is very good.

0:55:28 > 0:55:361,600 to 1,650 a month would generate a reasonable yield of between 5.5 and 6%.

0:55:36 > 0:55:40But is Reza likely to see an uplift in the re-sale value?

0:55:40 > 0:55:44Remember, he has spent around 341,000 in total here.

0:55:46 > 0:55:53If I was going to put this on the market for sale, I would put it on in the region of £385,000 to £395,000.

0:55:53 > 0:55:58I would look to put this on the market for just below the £400,000,

0:55:58 > 0:56:04so perhaps we would try and market this flat at £395,000 and see what the feedback was.

0:56:04 > 0:56:08I'm really pleased since we bought it for £324,000,

0:56:08 > 0:56:14so it's a good, short-term gain, but I think we'll keep it for now.

0:56:14 > 0:56:20With a potential pre-tax profit of between 44,000 and 54,000, no wonder Reza is pleased.

0:56:20 > 0:56:23It seems it might be the first of many.

0:56:23 > 0:56:29We're much more confident. The team's in place and we have a deposit. We're ready for the next venture, really.

0:56:29 > 0:56:36So for Reza at least, it seems his hopes for building a property portfolio are looking up.

0:56:36 > 0:56:41# Lifting me higher and higher, come on... #

0:56:44 > 0:56:46Well, that's all for today's show,

0:56:46 > 0:56:53but we'll have lots more stories from Britain's auction rooms here on Homes Under The Hammer next time.

0:56:53 > 0:56:57- And you wouldn't want to miss them. Join us then. Goodbye.- Goodbye.

0:57:18 > 0:57:21Subtitles by Red Bee Media Ltd