0:00:02 > 0:00:06The weather is pretty roasting today, but how do you tell the temperature of the property market?
0:00:06 > 0:00:09Sometimes it's difficult to tell whether it's blowing hot or cold.
0:00:09 > 0:00:13One way to find out is to visit your local auction room.
0:00:38 > 0:00:42When you go to an auction, you can tell whether there's confidence in the air
0:00:42 > 0:00:44or everybody's playing a cautious game.
0:00:44 > 0:00:47It's a very interesting snapshot of the property market.
0:00:47 > 0:00:52So let's see how the land lies with the properties that went to auction on today's show.
0:00:53 > 0:00:56This Cornish cottage has great floors, a stone pillar,
0:00:56 > 0:01:00and to cap it all, this amazing open fireplace.
0:01:00 > 0:01:02I'm in love.
0:01:03 > 0:01:08In Ashford, Kent, first impressions of this house seemed promising.
0:01:08 > 0:01:12Sadly, the inside doesn't match the outside.
0:01:12 > 0:01:16And the number could be up for this mid-terraced property
0:01:16 > 0:01:19in North Blyth, Northumberland.
0:01:19 > 0:01:23OK. Marks out of 10 for the fireplace.
0:01:24 > 0:01:27All of these properties went to auction.
0:01:27 > 0:01:32- We'll find out who bought them and what they paid when they went under the hammer.- I'm going to sell.
0:01:37 > 0:01:42Ah, Cornwall! It really is beautiful.
0:01:42 > 0:01:45But it's also got some really interestingly named villages,
0:01:45 > 0:01:47such as Gweek.
0:01:47 > 0:01:51But it's inspired me to write a little ditty. Here goes.
0:01:51 > 0:01:55It's been a long week but I'm determined to seek
0:01:55 > 0:02:00a property that doesn't reek or that's been the subject to a leak.
0:02:00 > 0:02:03By jingo, I think I've done it!
0:02:03 > 0:02:06I bring you a property in Gweek.
0:02:10 > 0:02:15Gweek has a pub, a post office and shop. It's pretty darned pretty too.
0:02:15 > 0:02:18I am sold.
0:02:19 > 0:02:21So will the property I'm here to see
0:02:21 > 0:02:24live up to the charm of the surroundings.
0:02:24 > 0:02:28On paper, it certainly sounds all right, and you know what...
0:02:34 > 0:02:36How about that then?
0:02:36 > 0:02:39A period stone cottage in a glorious village location.
0:02:39 > 0:02:45The auction guide price, £175,000 to £200,000. Tempted?
0:02:45 > 0:02:47I know I am.
0:02:47 > 0:02:49Wow!
0:02:50 > 0:02:53This is fantastic.
0:02:53 > 0:02:56Look at all this natural stone on the walls.
0:02:56 > 0:03:01And this I presume is some remnant to the old days when this was a mill.
0:03:04 > 0:03:07I've seen enough already. I'm going!
0:03:07 > 0:03:08Only kidding! It's fan...
0:03:10 > 0:03:14Yes, it gets better. Look through here.
0:03:14 > 0:03:17Stone stairs up to the bedrooms. This room... I don't know.
0:03:17 > 0:03:19There's another backdoor here.
0:03:19 > 0:03:23I guess this is where you'd have your boots if you've been out walking.
0:03:23 > 0:03:25Nice high ceilings.
0:03:25 > 0:03:29Loo and a shower room there and then through to the kitchen.
0:03:29 > 0:03:33It's a bit dingy at the moment and cobwebby and stuff, but who cares?
0:03:33 > 0:03:37Look at all this stuff! This amazing beam across here.
0:03:37 > 0:03:40It's just got so much character! Places you can look through.
0:03:40 > 0:03:45There's so much to see. Wherever your eye goes, there's something new to admire.
0:03:45 > 0:03:48Beams that you could strip back. I mean, it just goes on.
0:03:48 > 0:03:52Yes, it's in need of some money spending on it,
0:03:52 > 0:03:56but I would adore spending every single penny.
0:03:56 > 0:04:02Back into the lounge here. To cap it all, this amazing open fireplace.
0:04:02 > 0:04:04I'm in love.
0:04:04 > 0:04:06# I'm all shook up
0:04:06 > 0:04:07# Mm, mm, mm
0:04:07 > 0:04:09# Mm, mm
0:04:09 > 0:04:11- # Yeah, yeah.- #
0:04:12 > 0:04:16Some developers may want to shake things up layout wise,
0:04:16 > 0:04:20but I reckon a sympathetic renovation is the way forward here.
0:04:21 > 0:04:25Unfortunately, the price you pay for the high ceilings downstairs
0:04:25 > 0:04:29is the fact that up here, the absolute opposite is true.
0:04:29 > 0:04:32But again, this whole feeling of charm.
0:04:32 > 0:04:34It certainly scores extraordinarily well.
0:04:34 > 0:04:37Although, if you are tall, it might be a bit of an issue.
0:04:37 > 0:04:40You've got four bedrooms at the moment.
0:04:40 > 0:04:42One back there along with a bathroom. Another one here.
0:04:42 > 0:04:45A tiny box from there and then the fourth bedroom here.
0:04:45 > 0:04:48Maybe you could think about reconfiguring this.
0:04:48 > 0:04:51Maybe take this one out to create a really nice size third bedroom
0:04:51 > 0:04:54And also, I would look at taking out the ceiling.
0:04:54 > 0:04:56Taking it right back up to the rafters,
0:04:56 > 0:05:00giving upstairs that feeling of openness that it doesn't currently have.
0:05:00 > 0:05:01But apart from that...
0:05:03 > 0:05:05..the magic continues.
0:05:05 > 0:05:07# It's a kind of magic. #
0:05:08 > 0:05:13Outside, there's a pretty scruffy looking space behind the property,
0:05:13 > 0:05:15which should clear up fine.
0:05:15 > 0:05:19But that's not all the outside space you get with this one. No, sirree!
0:05:19 > 0:05:21# It's a kind of magic. #
0:05:23 > 0:05:26It gets even better because you don't only get the house.
0:05:26 > 0:05:30Across this little track is this little bit of garden and then...
0:05:32 > 0:05:35I'm starting to be pretty blown away by this whole experience.
0:05:35 > 0:05:39Down here a little bit further, there is this two-storey garage.
0:05:39 > 0:05:41It's actually upside down, if you like.
0:05:41 > 0:05:45On one floor, you've got this garage area and downstairs, another room.
0:05:45 > 0:05:49Now, that's great as it is, to have that parking space or that storage space,
0:05:49 > 0:05:53but what about thinking about converting that into something?
0:05:53 > 0:05:57Speaking to the planners. Could that be an annexe or maybe even a separate property?
0:05:57 > 0:06:00A separate property around here like that
0:06:00 > 0:06:02is going to get you £200,000 at least.
0:06:02 > 0:06:06That would pay for the renovation of the old mill.
0:06:07 > 0:06:10Wow! It just gets better and better.
0:06:10 > 0:06:14# I'm getting better all the time. #
0:06:15 > 0:06:19If you hadn't guessed already, I'm pretty taken with this place.
0:06:19 > 0:06:25That guide price of £175,000 to £200,000 certainly works for me.
0:06:25 > 0:06:28But what does a local estate agent make of it?
0:06:28 > 0:06:31It's lovely. It's got so much potential.
0:06:31 > 0:06:35It obviously needs a lot of work doing to it inside
0:06:35 > 0:06:38but it's got so much scope to put your own stamp on it.
0:06:40 > 0:06:43If the purchaser were to do that work and rent it out,
0:06:43 > 0:06:47what kind of rental income might the property fetch?
0:06:47 > 0:06:53The rental figure for this property, I would say per calendar month, would be around the £1,000 mark.
0:06:53 > 0:06:55What about a resale value?
0:06:55 > 0:07:00I think the property, once it's completely done inside to a really high standard throughout,
0:07:00 > 0:07:03should reach figures of around the £350,000 mark.
0:07:03 > 0:07:05Well, this place, what can I say?
0:07:05 > 0:07:10Charming with a capital C. And an H, A, R... The whole thing.
0:07:10 > 0:07:14Bells, whistles, I mean I love it.
0:07:14 > 0:07:17It's got the additional space in the garage, it's got the bit of land.
0:07:17 > 0:07:22You can't wish for a better location. A fantastic one to go for.
0:07:22 > 0:07:24Let's see who agreed when it went under the hammer.
0:07:25 > 0:07:28Right, ladies and gentlemen, lot 18.
0:07:29 > 0:07:32Will somebody here start me off on £175,000?
0:07:33 > 0:07:35No? I'll go to £170,000.
0:07:35 > 0:07:40170, straightaway on the aisle on the left. 170. 175 now?
0:07:40 > 0:07:44I've got £170,000 on the left. 175?
0:07:45 > 0:07:48Does it help if I take two and a half?
0:07:49 > 0:07:52172 and a half. 172 and a half.
0:07:52 > 0:07:55Progress at the auction was surprisingly slow
0:07:55 > 0:07:58and the lot went between a number of interested parties.
0:07:58 > 0:08:02We rejoin the bidding at £180,000.
0:08:02 > 0:08:07Anyone else want to come in? Now is your opportunity. It's at £180,000.
0:08:09 > 0:08:11181. 182.
0:08:11 > 0:08:13182. 183?
0:08:14 > 0:08:15£182,000.
0:08:15 > 0:08:18£182,000 in the front on the left.
0:08:18 > 0:08:21Anyone else here for this property?
0:08:21 > 0:08:24Now is your opportunity. At 182,000. I'll take a bid at 182,000.
0:08:24 > 0:08:26For the first time. For the second time.
0:08:26 > 0:08:30Against you and against you. Are you quite sure you're all done?
0:08:30 > 0:08:35It's £182,000. That was the first time of calling. I'm going to sell.
0:08:37 > 0:08:41The successful bid of £182,000 was made by local man Brian,
0:08:41 > 0:08:46who works as an electrician in the nearby Royal Naval Air Station.
0:08:46 > 0:08:49In fact, Brian and his wife, Sarah,
0:08:49 > 0:08:53have lived next door to the cottage for the past eight years.
0:08:53 > 0:08:57# I'm living right next door to an angel
0:08:57 > 0:09:00# And I'm going to make that angel mine. #
0:09:00 > 0:09:05I caught up with Brian at the property to find out his plans.
0:09:06 > 0:09:10- Good to meet you. Congratulations. - Thank you.- I'm very jealous.
0:09:10 > 0:09:16It's an amazing house. Why did you want to buy it? If it isn't obvious.
0:09:16 > 0:09:19- I didn't want to buy it.- Eh? - I didn't want to buy it.
0:09:19 > 0:09:23- You didn't want to buy it?- No. I didn't want the house.
0:09:25 > 0:09:29I wanted the garage that backs onto our place
0:09:29 > 0:09:32because if somebody else bought that,
0:09:32 > 0:09:36they would overlook our back garden and it's right for redevelopment.
0:09:36 > 0:09:39It came in one lot so I had to buy the lot.
0:09:39 > 0:09:45- So it wasn't the charm of this place that made you bid on it?- No.
0:09:45 > 0:09:47- It was the garage?- Yes.
0:09:47 > 0:09:53We really didn't want to be in a position where somebody else
0:09:53 > 0:09:56would redevelop the bit that we wanted.
0:09:56 > 0:09:58So we didn't have any choice.
0:09:59 > 0:10:02I went to the auction, first auction I've ever been to in my life,
0:10:02 > 0:10:05and thought, we had already been to see the mortgage company
0:10:05 > 0:10:09and they told us what our limit was and we just decided...
0:10:11 > 0:10:12..we're going for it.
0:10:15 > 0:10:19It may sound extreme, but Brian and his wife were all set to move
0:10:19 > 0:10:23if they didn't manage to secure the cottage and garage at the auction.
0:10:23 > 0:10:26That gives you an idea of how much value they put
0:10:26 > 0:10:28on maintaining their privacy.
0:10:30 > 0:10:33So what happens now? What's the plans now?
0:10:33 > 0:10:36The initial thought was to just separate the deeds
0:10:36 > 0:10:38and sell this as it is.
0:10:40 > 0:10:42But now I've had a good look round,
0:10:42 > 0:10:46I can see so much potential in this place
0:10:46 > 0:10:49that I think it's a case of doing it up.
0:10:50 > 0:10:53I don't want a developer to come in and change at all.
0:10:53 > 0:10:57I want to keep all the stuff that's in here.
0:10:57 > 0:11:01Somebody has taken the time and trouble to make all this stuff.
0:11:02 > 0:11:05The kitchen cabinets and stuff were made to fit those areas.
0:11:05 > 0:11:08They weren't made to be ripped out.
0:11:08 > 0:11:11So I'm going to keep as much as I can,
0:11:11 > 0:11:13do it up exactly as it should be,
0:11:13 > 0:11:17and then I'll decide after that what we're going to do with it.
0:11:18 > 0:11:20A man after my own heart.
0:11:20 > 0:11:24It sounds like Brian is going to do the sympathetic renovation
0:11:24 > 0:11:26this house is crying out for.
0:11:26 > 0:11:29Rewiring and re-plumbing are on the cards. Anything else?
0:11:30 > 0:11:35A lot of it in here is cosmetic. It's sound as a house.
0:11:35 > 0:11:39We've got one wall I think we need to take out upstairs to make it into a three-bedroom
0:11:39 > 0:11:42rather than a four, because one of the bedrooms is really small.
0:11:42 > 0:11:45Obviously, we've got all the outside to do and stuff.
0:11:45 > 0:11:48What kind of budget have you got for the work?
0:11:48 > 0:11:50We're thinking about 20K for in here.
0:11:50 > 0:11:53and then 15 to do the garage.
0:11:53 > 0:11:55Tell me what you're going to do with the garage.
0:11:55 > 0:11:58The top bid is going to remain a garage.
0:11:58 > 0:12:02Downstairs, I've managed to persuade my wife that I'm going to have a games room.
0:12:02 > 0:12:04Pool table, jukebox, dartboard.
0:12:04 > 0:12:09And any more aspirations for property purchasing?
0:12:09 > 0:12:12If this makes you loads of money, would you think,
0:12:12 > 0:12:14that was quite a good thing to do?
0:12:14 > 0:12:18It's funny. I was so nervous in that auction.
0:12:18 > 0:12:22After I bought it, I was nearly crying. I just couldn't believe it.
0:12:22 > 0:12:26But then you walk out and you think, that was really good fun.
0:12:26 > 0:12:29- So never say never.- It's a lovely end to the story. Good luck.
0:12:29 > 0:12:32- Nice to meet you.- You too.- Cheers.
0:12:34 > 0:12:36Well, what a turn up for the books.
0:12:36 > 0:12:41It wasn't the charm of the cottage that attracted a bidder after all,
0:12:41 > 0:12:44but Brian's desire to protect his privacy
0:12:44 > 0:12:47and give himself some extra space with that garage and games room.
0:12:47 > 0:12:50How is he going to get on restoring the old mill house?
0:12:50 > 0:12:54I can't wait to see. You can find out later in the show.
0:12:58 > 0:13:01Just a couple of miles just outside Ashford in Kent,
0:13:01 > 0:13:06with its brand spanking new railway station and high-speed rail to London and Paris,
0:13:06 > 0:13:09is the ancient village of Great Chart.
0:13:09 > 0:13:10What a contrast.
0:13:10 > 0:13:15The old part is set on this main road and it's lined with stunning houses.
0:13:15 > 0:13:17Some with Dutch gables, some half tiled,
0:13:17 > 0:13:22some made of Kent ragstone, and all utterly charming.
0:13:24 > 0:13:27Many of the properties in Great Chart are listed and you can see why,
0:13:27 > 0:13:31because the village street, which itself is a conservation area,
0:13:31 > 0:13:34has many interesting architectural styles.
0:13:34 > 0:13:39I think there must have been a few competitive Kentish builders a couple of hundred years ago,
0:13:39 > 0:13:42all vying to make their house the most unique!
0:13:43 > 0:13:46The cottage that went to auction isn't listed
0:13:46 > 0:13:48but it is a bit hard to find.
0:13:48 > 0:13:52Down this alleyway, between the houses on the road
0:13:52 > 0:13:54and then along this path behind the houses.
0:13:54 > 0:13:58So it's pedestrian access only. I hope it's worth it.
0:13:59 > 0:14:03The property I'm here to see is exactly what I was hoping for
0:14:03 > 0:14:05as soon as I set foot in the village.
0:14:05 > 0:14:10A period property with character and style and in need of improvement.
0:14:10 > 0:14:14I'm not sure you could improve much on the first impressions though.
0:14:14 > 0:14:16It is charming.
0:14:16 > 0:14:20Redbrick, probably mid-Victorian, and it's got that lovely gabled front porch.
0:14:20 > 0:14:22So what have we got?
0:14:22 > 0:14:27Well, there's three bedrooms and a guide price of £135,000 to £145,000.
0:14:27 > 0:14:31And one very excited property developer!
0:14:33 > 0:14:37The access isn't ideal and I'd advise whoever who takes this on
0:14:37 > 0:14:42to read the legal pack thoroughly to check what their rights of way are.
0:14:44 > 0:14:48This plaque above the door shows that the house was once part of the Toke estate,
0:14:48 > 0:14:52named after a noble family who lived locally for generations.
0:14:54 > 0:14:57So could the property be just as characterful and historic inside?
0:15:00 > 0:15:01Oh.
0:15:01 > 0:15:06Sadly, the inside doesn't match the outside.
0:15:08 > 0:15:10But the good news is, I cannot smell damp.
0:15:10 > 0:15:14Although, there is a little worrying sign over here.
0:15:14 > 0:15:18It's a little bit wet to the touch and some wallpaper is peeling off,
0:15:18 > 0:15:21so I would certainly get that look that.
0:15:21 > 0:15:23But something else that really excites me,
0:15:23 > 0:15:25if I can get my strength up!
0:15:25 > 0:15:32Down here, there are some absolutely beautiful, fat, wooden floorboards.
0:15:32 > 0:15:34Imagine those beauties once you've sanded them,
0:15:34 > 0:15:37got some nice dark stain on.
0:15:37 > 0:15:40It's such a shame because if you look under here,
0:15:40 > 0:15:43there are some beautiful period feature windows,
0:15:43 > 0:15:46but absolutely covered in condensation.
0:15:46 > 0:15:51So whoever takes this on is going to have to think about replacing all of these windows.
0:15:51 > 0:15:55You have got stonking views out there, which is a real bonus.
0:15:55 > 0:15:59You may want to get rid of this because it doesn't match the period of the cottage.
0:15:59 > 0:16:05So, to sum up, the inside is not as cute and as cottagey as I'd have hoped,
0:16:05 > 0:16:08but hey, I like the project.
0:16:09 > 0:16:13I just hope that whoever bought this cottage shares my enthusiasm
0:16:13 > 0:16:15because there's lots to tackle here.
0:16:15 > 0:16:21The kitchen is perfectly serviceable but has none of the cottage character
0:16:21 > 0:16:22I'd like to reintroduce here.
0:16:25 > 0:16:29Up the winding stairs and there's a lovely find on the tiny landing.
0:16:29 > 0:16:33I wonder if there are even more of these beams to discover?
0:16:33 > 0:16:38The cottage has three bedrooms, but I suspect there were originally two and one has been divided.
0:16:41 > 0:16:45The bedrooms do have nice doors and skirting boards
0:16:45 > 0:16:47and I think I'd want to make more of those.
0:16:47 > 0:16:51The bathroom, like the kitchen, is serviceable,
0:16:51 > 0:16:54but again, has no real character.
0:16:54 > 0:16:58Outside, access is the real problem with this cottage
0:16:58 > 0:17:02that went to auction guided at £135,000 £145,000.
0:17:06 > 0:17:09There are some great views from the side across open fields,
0:17:09 > 0:17:11but there's only a tiny garden
0:17:11 > 0:17:15with a gate leading onto a driveway for neighbouring properties.
0:17:15 > 0:17:19But there's a question mark over vehicle access for the cottage.
0:17:22 > 0:17:24There's lots to think about with this one.
0:17:24 > 0:17:29I reckon a good mix of passion and know-how is needed to get the best out of it.
0:17:30 > 0:17:33Does a local estate agent agree?
0:17:33 > 0:17:36Let's find out what he thinks the pros and cons are.
0:17:36 > 0:17:39First impressions of the property is it needs a considerable amount of work.
0:17:39 > 0:17:42The access to the property isn't going to appeal to everybody.
0:17:42 > 0:17:45You have to come up a narrow alleyway
0:17:45 > 0:17:46and pass several other properties.
0:17:46 > 0:17:51It almost feels like you're walking across their front garden to get your own property.
0:17:51 > 0:17:54So from a resale point of view, I think that's going to be an issue.
0:17:55 > 0:17:58How do the numbers stack up here?
0:17:58 > 0:18:01What's the potential value now and after a refurbishment?
0:18:03 > 0:18:07The property today, I would expect to resale for around £140,000.
0:18:07 > 0:18:10Once the property has been fully refurbished,
0:18:10 > 0:18:14I'd imagine the property going for somewhere in the region of £190,000.
0:18:14 > 0:18:18So some money could be made here on the resale market
0:18:18 > 0:18:21and if the parking and access are sorted,
0:18:21 > 0:18:23that would increase its value too.
0:18:23 > 0:18:27But perhaps the cottage could also make a good buy to let investment.
0:18:28 > 0:18:31If the property were to be rented out,
0:18:31 > 0:18:34I'd expect it to achieve around £850 per month.
0:18:36 > 0:18:39This is a rare chance to buy a potentially gorgeous cottage
0:18:39 > 0:18:42in a pretty and practical location.
0:18:42 > 0:18:46I'm sold. Let's see who bought it at the auction.
0:18:46 > 0:18:48Lot 11, we go to now,
0:18:48 > 0:18:51which is a charming three-bedroom cottage for improvement.
0:18:51 > 0:18:54What are we going to say on this one? A super little cottage.
0:18:54 > 0:18:58Loads of people been over it. Can I see 135,000 for it?
0:18:59 > 0:19:04Give me 130 then. Get us on the way. 130 bid, I have. 130, I have.
0:19:04 > 0:19:08132, if you like? It's with you at 130.
0:19:08 > 0:19:11And two, do I see? 132, do I see?
0:19:11 > 0:19:15Are we all done at 130? 132, I'm obliged. And five now, may I see?
0:19:15 > 0:19:20134. 134. 136, if you like?
0:19:20 > 0:19:24At £134,000, I have. 136, I'm looking for.
0:19:24 > 0:19:27Are we all done at £134,000? It doesn't seem a lot of money.
0:19:27 > 0:19:31Great Chart, lovely little village. All done, with you at £134,000.
0:19:31 > 0:19:33Done at 134?
0:19:33 > 0:19:38Not enough money I'm afraid, so I won't be able to sell that one.
0:19:38 > 0:19:42Well, the cottage failed to meet its reserve at the auction.
0:19:42 > 0:19:46But straight afterwards, husband and wife, David and Elaine,
0:19:46 > 0:19:50put in an offer of £140,000 which was accepted.
0:19:52 > 0:19:55David's a chartered surveyor who works for the local authority
0:19:55 > 0:19:58and Elaine runs their guesthouse in Canterbury.
0:19:58 > 0:20:04They don't have far to go, since they're currently renovating their own home in the same village.
0:20:07 > 0:20:10I met up with them at the house to discover
0:20:10 > 0:20:13why they wanted to take on another place in the village and do it all again.
0:20:15 > 0:20:19Elaine and David, congratulations. Are you completely thrilled with this purchase?
0:20:19 > 0:20:23- Yes. Completely thrilled.- I think we are very pleased indeed, yes.
0:20:23 > 0:20:26- Who was it who wanted it? Who spotted it?- It just came about.
0:20:26 > 0:20:32We were in the auction trying to sell some public toilets and we just happened to see this one.
0:20:32 > 0:20:35What? Wait a minute! You were selling off some toilets?
0:20:35 > 0:20:39- That's part of my day job. - What? Selling toilets?- Yes. I work for the local authority.
0:20:39 > 0:20:42We had some public conveniences that were surplus
0:20:42 > 0:20:45and I just happened to be at the auction, seeing how those went.
0:20:45 > 0:20:47- And?- This came up a few items later.
0:20:47 > 0:20:49We had pressed our nose to the window,
0:20:49 > 0:20:53bearing in mind we have a house just down the road from here.
0:20:53 > 0:20:56We had seen it, went to the auction room, it didn't go at the auction,
0:20:56 > 0:20:59so I looked at Elaine and said, how about it?
0:20:59 > 0:21:01So how much time in between seeing it,
0:21:01 > 0:21:05pressing your noses up against the window, to buying it did you have?
0:21:05 > 0:21:07About five minutes.
0:21:07 > 0:21:11Because he's very sneaky and brought me here and said,
0:21:11 > 0:21:13"There's a little cottage at the auction."
0:21:13 > 0:21:15Knowing full well he was going to the auction.
0:21:15 > 0:21:18He said, "You can have a sneaky day off and come to the auction."
0:21:18 > 0:21:21And it didn't sell and he said, "Shall we buy it?"
0:21:21 > 0:21:24And I went... And he'd gone!
0:21:24 > 0:21:29- Hold on a minute. So it didn't sell and so you made a private bid for this?- That's right.
0:21:29 > 0:21:32It didn't sell in the room so I nipped straight out after the lot
0:21:32 > 0:21:34and spoke to the auction negotiator.
0:21:34 > 0:21:40I had a quick look at the legal pack just to make sure I thought I knew what I knew.
0:21:40 > 0:21:43Looked at that, confirmed, went to the negotiator and put an offer in.
0:21:44 > 0:21:49Although there are fabulous views across open countryside at the side of the house,
0:21:49 > 0:21:54the lack of parking and difficult access might have deterred some buyers at the auction.
0:21:54 > 0:21:58But David, who's a surveyor, and has experience of similar situations,
0:21:58 > 0:22:01thinks a solicitor could resolve the issues.
0:22:01 > 0:22:04So is that what made him confident enough to buy?
0:22:06 > 0:22:09I think my comfort came from having a very good solicitor
0:22:09 > 0:22:14and a chap that could organise a mortgage within two weeks of the auction date
0:22:14 > 0:22:18because I had no funding sorted out, I had made no arrangements.
0:22:18 > 0:22:22- So it was very much...- I'm not listening to this! Wait a minute! You have thrown me into a spin.
0:22:22 > 0:22:26- You had no funding, you weren't prepared.- No.
0:22:26 > 0:22:29- Elaine, it's a miracle this has even worked out.- I know.
0:22:29 > 0:22:31# I don't want to hear
0:22:31 > 0:22:34# I don't want to know
0:22:34 > 0:22:36# Please don't say forgive me
0:22:36 > 0:22:39# I've seen it all before
0:22:39 > 0:22:44# And I can't take it any more. #
0:22:44 > 0:22:47Oh yes, I've heard this so many times before
0:22:47 > 0:22:50but it's such a risky way to operate.
0:22:50 > 0:22:53Not being properly prepared to buy at auction
0:22:53 > 0:22:57could get you into all sorts of legal and financial problems.
0:22:57 > 0:23:04Hopefully, David won't get into hot water sorting out any subsequent issues from this purchase.
0:23:04 > 0:23:08The couple were pleasantly surprised by the condition of the house
0:23:08 > 0:23:11once they did finally get in to view it.
0:23:11 > 0:23:15That's just as well because they'll be doing most of the work themselves
0:23:15 > 0:23:18and have potential tenants lined up to move in.
0:23:18 > 0:23:23- So how much time do you think you are going to spend here?- Not a lot. It's going to be done on-the-fly.
0:23:23 > 0:23:25We'll do it properly but with a full-time job...
0:23:25 > 0:23:28- Most of it's cosmetic. - ..and running a business.
0:23:28 > 0:23:32We're going to put a new kitchen and we're going to tile floors.
0:23:32 > 0:23:35We thought it was going to be really bad but it isn't.
0:23:35 > 0:23:39So I think within the next couple of months, we'll be able to do it.
0:23:39 > 0:23:43Are you going to be taking all the wallpaper off, stripping it back, lots of woodchip everywhere?
0:23:43 > 0:23:47How far are you going to go with this project?
0:23:47 > 0:23:49I think a lot of the decor will take a longer time to do.
0:23:49 > 0:23:51There's no need to do it now.
0:23:51 > 0:23:56It's liveable in for the tenants and we can come back and do the woodchip at a later date.
0:23:56 > 0:24:01David and Elaine are also restoring their own house, so they're going to be busy.
0:24:01 > 0:24:07They paid 140,000 for the cottage and once the refurbishment has been done, they plan to rent it out.
0:24:07 > 0:24:11How much do they think it will cost to do the work?
0:24:11 > 0:24:15We won't be spending a lot here. Our money is committed to another building project
0:24:15 > 0:24:18So it'll be very much what we can do.
0:24:18 > 0:24:22- So what do you think? £10,000? - Maximum.- A maximum of 10, I think.
0:24:22 > 0:24:25Well, congratulations. It's a lovely cottage.
0:24:25 > 0:24:29It's adorable and with all the right features, it will look stunning.
0:24:29 > 0:24:32Thank you so much for coming along today. Good luck with this.
0:24:32 > 0:24:34- Thank you.- Lovely to meet you. - Thank you.
0:24:35 > 0:24:40So, from selling loos to buying a little cottage with legal issues
0:24:40 > 0:24:43with no money in place, it's just a day's work for David!
0:24:43 > 0:24:46Not so sure about Elaine!
0:24:46 > 0:24:49But both of them are excited about this project and quite rightly.
0:24:49 > 0:24:54It's a gorgeous house, but will they find the time and uncover the character?
0:24:54 > 0:24:57You can find out later in the show.
0:24:58 > 0:25:02Coming up: There are several layout options in this Northumberland terrace.
0:25:02 > 0:25:07Somewhere for a range cooker perhaps. Clearly, a kitchen that needs a bit of thinking about.
0:25:08 > 0:25:13We return to Kent, where it's been safety first with this cottage.
0:25:13 > 0:25:17We haven't skimped on the rewire. We rewired the whole house, which includes smoke alarms.
0:25:19 > 0:25:24But first, back in Cornwall, Brian's had only one thing on his mind since we met.
0:25:24 > 0:25:27All our energy and money has gone into doing this place.
0:25:31 > 0:25:34Earlier in the programme in the Cornish village of Gweek,
0:25:34 > 0:25:37local electrician Brian paid £182,000
0:25:37 > 0:25:41for this period four-bedroom stone cottage.
0:25:41 > 0:25:45But for Brian and his wife, Sarah, who live next door,
0:25:45 > 0:25:50the attraction was the garage and land that bordered their house.
0:25:50 > 0:25:54They were desperate to stop any development spoiling their outlook.
0:25:54 > 0:25:57So what happens now? What are the plans now?
0:25:57 > 0:26:01The initial thought was to just separate the deeds and sell this as it is.
0:26:01 > 0:26:03But now I've had a good look round,
0:26:03 > 0:26:05I can see so much potential in this place.
0:26:05 > 0:26:07I think it's a case of doing it up.
0:26:07 > 0:26:10So I'm going to keep as much as I can,
0:26:10 > 0:26:16do it up exactly as it should be and then I'll decide after that what we're going to do with it.
0:26:18 > 0:26:2210 months later, we met up again with Brian to check on the progress.
0:26:27 > 0:26:30Well, the cottage has new windows throughout
0:26:30 > 0:26:32and the outside has been painted.
0:26:35 > 0:26:39Inside, the kitchen units have been restored,
0:26:42 > 0:26:45With new appliances and tiling throughout the kitchen
0:26:45 > 0:26:48and utility area, the space looks great.
0:26:50 > 0:26:52We tried to retain as much as we could in the kitchen
0:26:52 > 0:26:54but it was in a hell of a state.
0:26:54 > 0:26:59We had an old range here which has now been put in as a log burner.
0:26:59 > 0:27:02The units were all really made to fit this kitchen.
0:27:02 > 0:27:06It was a question of taking them all out, redressing them and putting them back.
0:27:06 > 0:27:09Re-tiling. Complete rewire. Replumb.
0:27:09 > 0:27:13And then we've gone for electric combi heating as opposed to oil.
0:27:15 > 0:27:19Next to the utility area, the shower room has been refitted
0:27:19 > 0:27:22with a new suite and tiles.
0:27:24 > 0:27:30And the rewiring and refurbishment continue in the living area at the front of the cottage.
0:27:31 > 0:27:34This is the living room.
0:27:34 > 0:27:39Again, we've tried to keep as much character of the old cottage as we could.
0:27:39 > 0:27:41The fireplace, we didn't know if it worked or not
0:27:41 > 0:27:44so we had to get it swept and checked and tested
0:27:44 > 0:27:46and lo and behold, it does work.
0:27:46 > 0:27:49And the little bread come pizza oven now.
0:27:49 > 0:27:53We've ended up with this little room and I think it looks quite nice.
0:27:54 > 0:27:57Upstairs, two of the bedrooms have been combined into one,
0:27:57 > 0:28:00so the cottage now has three bedrooms.
0:28:04 > 0:28:07I think Brian made the right decision to refurbish the cottage
0:28:07 > 0:28:11and he's now let it out to a friend who helped with the work.
0:28:14 > 0:28:15I had a word with a local builder
0:28:15 > 0:28:18who had done some work on my place previously.
0:28:19 > 0:28:23He came up with the idea that if him and his family were to move in,
0:28:23 > 0:28:29he'd provide me with a good labour rate to do the place up.
0:28:29 > 0:28:32So I thought, all right. We'll go with that.
0:28:32 > 0:28:34Sounds like a good deal to me.
0:28:35 > 0:28:39Brian also worked on the cottage every evening and weekend
0:28:39 > 0:28:42to get it in good enough condition for the tenants to move in.
0:28:42 > 0:28:45It took about three months and as well as his builder,
0:28:45 > 0:28:49he employed other tradespeople for specific jobs.
0:28:50 > 0:28:55But what about the garage next door to his own home? What's been happening there?
0:28:55 > 0:28:58The bit I actually wanted to keep
0:28:58 > 0:29:01was the bit I've done the least amount to,
0:29:01 > 0:29:04because all our energy and money has gone into doing this place.
0:29:04 > 0:29:07It's only now in these last few weeks that we've started
0:29:07 > 0:29:10to look at it and decide what we're going to do with it.
0:29:10 > 0:29:13Brian's plans for a games room have changed.
0:29:13 > 0:29:16He's now thinking of a summer room under the garage.
0:29:16 > 0:29:20But he's also got a more interesting project to think about.
0:29:20 > 0:29:23The land that's across the path from the cottage.
0:29:23 > 0:29:28This was supposed to be the front garden to the cottage
0:29:28 > 0:29:31but we've now decided to apply for planning
0:29:31 > 0:29:35to put a three-bedroomed split-level house across the back here,
0:29:35 > 0:29:38which will have views that down the valley, back down through the boat yard.
0:29:38 > 0:29:41So it's going to be a nice little spot.
0:29:41 > 0:29:47Because we're on a bit of a slope, it has to be dug into the slope, but it will be looking out that way
0:29:47 > 0:29:50so it won't interrupt the views of any of the other cottages here.
0:29:50 > 0:29:52And they've got the lovely view down the valley.
0:29:52 > 0:29:56Brian has applied for outlined planning permission
0:29:56 > 0:30:00and if he's successful, he intends to sell the land with that permission.
0:30:01 > 0:30:05He paid £182,000 at the auction.
0:30:05 > 0:30:08How much has he had to spend refurbishing the cottage so far?
0:30:10 > 0:30:15The house has more or less cost just short of 40k.
0:30:15 > 0:30:19The garage, nothing, because I haven't started!
0:30:20 > 0:30:24That £40,000 budget includes a whopping £10,000 on the windows alone,
0:30:24 > 0:30:30making Brian's total outlay so far £222,000, including the purchase price.
0:30:34 > 0:30:37Time to hear what two local estate agents
0:30:37 > 0:30:42make of the refurbished cottage and the potential of that building plot.
0:30:42 > 0:30:45I think it's gorgeous. I think the owner's done a really good job with it
0:30:45 > 0:30:49and shown off the original features to their best.
0:30:49 > 0:30:52Certainly getting rid of the fourth bedroom was an improvement
0:30:52 > 0:30:54because it didn't really do much before.
0:30:54 > 0:30:57Really nice. Lots of original period features,
0:30:57 > 0:31:00some nice interesting quirks about it.
0:31:00 > 0:31:01It will appeal to a lot of buyers.
0:31:01 > 0:31:05Brian has already let the cottage to his builder friend,
0:31:05 > 0:31:08but what income could the cottage achieve
0:31:08 > 0:31:10if rented on the open market?
0:31:10 > 0:31:15I think the achievable rent here would be around £800 per calendar month.
0:31:15 > 0:31:18I think we could achieve £900 to £925 per calendar month.
0:31:18 > 0:31:24I'm happy with that. It's pretty much what we expected and if you took an average of those two,
0:31:24 > 0:31:28then I'm more than happy with that amount per month. That's fine.
0:31:29 > 0:31:34Brian has invested £222,000 here so far
0:31:34 > 0:31:38and is looking at the best ways of making the most from what he bought at auction.
0:31:38 > 0:31:40Although as yet unchanged,
0:31:40 > 0:31:46the garage is part of Brian's own garden and deeds now.
0:31:46 > 0:31:49The building plot belonging to the cottage will be separated off
0:31:49 > 0:31:51if they can get planning permission.
0:31:51 > 0:31:55So what's the cottage worth if sold on in its own right?
0:31:55 > 0:31:59I think sale value, we're probably looking somewhere around the £300,000 mark.
0:31:59 > 0:32:02I would value this at a figure of around £290,000.
0:32:02 > 0:32:08So, a gross profit on the cottage of between £68,000 and £78,000.
0:32:08 > 0:32:12I've got no plans at all to sell because I'm quite happy with the situation as it is.
0:32:12 > 0:32:15But yes, it's just nice to know. That's great.
0:32:15 > 0:32:17It's very nice to know.
0:32:17 > 0:32:20And of course, to add to the value of the cottage,
0:32:20 > 0:32:23he's got a potential return if he can sell the land
0:32:23 > 0:32:26with the outlined planning permission.
0:32:26 > 0:32:30The land, with planning permission, I think we're looking at at least £150,000,
0:32:30 > 0:32:33depending on specification and what plans were passed.
0:32:33 > 0:32:36I think the building plot with planning permission
0:32:36 > 0:32:38would be worth a figure in the region of £140,000.
0:32:38 > 0:32:44Blimey! Brian could be on a bit of a winner here. I bet he's delighted.
0:32:44 > 0:32:47I don't really know what sort of figure to put on a plot,
0:32:47 > 0:32:51having never done planning before, never gone down that avenue at all.
0:32:51 > 0:32:53So anything is a bonus, to be honest.
0:32:55 > 0:33:00If I could secure something around that figure, fantastic!
0:33:04 > 0:33:08That is the River Blyth in Northumberland.
0:33:08 > 0:33:10Over there is the town of Blyth.
0:33:10 > 0:33:15But I'm here to see a property in North Blyth, which is there.
0:33:15 > 0:33:18The port of Blyth is still going strong.
0:33:18 > 0:33:23It handles 1.5 million tonnes of cargo year, ranging from metals to paper.
0:33:23 > 0:33:26The chances are that your daily newspapers printed on paper
0:33:26 > 0:33:28that comes from here.
0:33:28 > 0:33:32# Get your paper
0:33:32 > 0:33:37# Get your paper. #
0:33:37 > 0:33:41But back across the river, North Blyth is not the sort of place to make headlines.
0:33:41 > 0:33:44To be honest, there's not a lot here.
0:33:44 > 0:33:48A club and these rows of former miners cottages.
0:33:48 > 0:33:51It's also not brilliant for transport links
0:33:51 > 0:33:55with just a few buses a day and no amenities.
0:33:55 > 0:33:58So it's one place you're definitely going to need a car.
0:33:58 > 0:34:01There are just three streets in North Blyth
0:34:01 > 0:34:03sandwiched between the estuary and the railway track.
0:34:03 > 0:34:06But it does have a beautiful beach,
0:34:06 > 0:34:09perfect for long walks on blustery days.
0:34:09 > 0:34:13# We need the wild wind. #
0:34:15 > 0:34:19The houses are all that remain of a former thriving pit village.
0:34:19 > 0:34:23But when the pit closed and subsequently the power station,
0:34:23 > 0:34:25many were demolished.
0:34:25 > 0:34:27But not the one that I'm here to see.
0:34:30 > 0:34:34Well, the outside may have a few issues.
0:34:34 > 0:34:37Let's hope the inside is a different story.
0:34:39 > 0:34:41Glazed door. Good start.
0:34:41 > 0:34:44Stairs up to your bedrooms there and then through into the lounge.
0:34:44 > 0:34:48Nice high ceilings, which is a nice surprise.
0:34:48 > 0:34:50HE CHUCKLES
0:34:50 > 0:34:56OK. Marks out of 10 for the fireplace and feature wall.
0:34:56 > 0:34:57OK.
0:34:57 > 0:35:01I'm not that sure about it but the actual room itself is quite pleasant
0:35:01 > 0:35:05and I love the fact you've got this huge great archway
0:35:05 > 0:35:09which leads into a big open plan kitchen area.
0:35:09 > 0:35:11It makes this area of the downstairs just feel enormous.
0:35:11 > 0:35:14A bit strange without any furniture at the moment.
0:35:14 > 0:35:16Somewhere for a range cooker, perhaps.
0:35:16 > 0:35:19Clearly a kitchen that needs a bit of thinking about.
0:35:19 > 0:35:21But loads of options.
0:35:21 > 0:35:24I'm thinking maybe some kind of an island kitchen here or a sofa
0:35:24 > 0:35:29to turn it into one of those family kitchen and living areas.
0:35:29 > 0:35:31A nice usable space.
0:35:31 > 0:35:36At the back, there's a small utility area that seems to have a bit of water damage.
0:35:36 > 0:35:40Further down to the rear, there's a bathroom suite
0:35:40 > 0:35:43with some rather unusual tiling which may need replacing.
0:35:43 > 0:35:49And upstairs? Well, there are three bedrooms. One small and two double.
0:35:49 > 0:35:53The rear double has a bit of character, with an original fireplace,
0:35:53 > 0:35:57while the front also has character. But it's not Bugs Bunny!
0:35:57 > 0:36:01But apart from leading redecoration, the rooms are all in good order.
0:36:01 > 0:36:04So it's shaping up nicely.
0:36:04 > 0:36:08But let's stop rabbiting on here and see what's out the back.
0:36:08 > 0:36:12At the rear of the property, a useful little yard area,
0:36:12 > 0:36:14currently filled with rubbish.
0:36:14 > 0:36:16A downside to the area in general though
0:36:16 > 0:36:19is that there is no mains gas supply,
0:36:19 > 0:36:23so when it comes to heating your house, you have to be creative, which is exactly what this is.
0:36:23 > 0:36:28It's an air source heat pump which uses something called vapour compression refrigeration,
0:36:28 > 0:36:32to turn heat from the air into hot water to go into the radiators.
0:36:32 > 0:36:35Very clever. It works almost like a fridge in reverse.
0:36:35 > 0:36:40I'm not sure how efficient it is but it's a pretty impressive bit of kit.
0:36:40 > 0:36:42It's a clever solution,
0:36:42 > 0:36:45but would this please make a clever investment?
0:36:45 > 0:36:49After all, for a three-bed house guided at £25,000,
0:36:49 > 0:36:51there's not a lot wrong here.
0:36:51 > 0:36:54There doesn't appear to be any major structural damage
0:36:54 > 0:36:56and the whole place just needs updating.
0:36:56 > 0:37:00For a second opinion, we asked along the local estate agent
0:37:00 > 0:37:03to see what she thought of the place.
0:37:03 > 0:37:06A really good size mid-terraced property. It has double glazing.
0:37:06 > 0:37:10It's got heating. But it needs pretty much a good refurbish.
0:37:11 > 0:37:15Once done up, what could it achieve on the resale market?
0:37:15 > 0:37:18Once renovated, it's a good-sized property
0:37:18 > 0:37:22and I would probably suggest an asking price of around £45,000.
0:37:23 > 0:37:27And for a buy to let investor, what income could it generate?
0:37:28 > 0:37:31On the valuation, good-sized property at the end of the day.
0:37:31 > 0:37:35I would say between £300 and £400 per calendar month.
0:37:35 > 0:37:38So let's find out who felt this three-bedroom terrace
0:37:38 > 0:37:43in pretty reasonable condition was worth its £25,000 guide price
0:37:43 > 0:37:45when it went under the hammer.
0:37:49 > 0:37:54Up to Northumberland now. Lot number eight in Blyth. Can I ask for 25?
0:37:57 > 0:37:59I'll take 15 to get me going. I need 15.
0:37:59 > 0:38:03Thank you. 15,000. 16,000, elsewhere?
0:38:03 > 0:38:0816,000, standing. 17,000. 18,000. 19.
0:38:08 > 0:38:1120. 21.
0:38:11 > 0:38:14I'll take 500. 20,500.
0:38:14 > 0:38:1621,000.
0:38:16 > 0:38:2021, bid. 21,500. 22.
0:38:20 > 0:38:2122,500.
0:38:21 > 0:38:2623? No. I'm selling once at 22,500.
0:38:26 > 0:38:29I'm selling for the second time at £22,500.
0:38:29 > 0:38:31Sold to the gentleman in the blue shirt.
0:38:33 > 0:38:36That successful bid of 22,500,
0:38:36 > 0:38:392,500 under the guide price, was made by Ian.
0:38:42 > 0:38:46He describes himself as a property investor and tax strategist.
0:38:47 > 0:38:51A chartered accountant by trade, he bought his first development property
0:38:51 > 0:38:55six years ago and now develops property virtually full-time.
0:38:56 > 0:39:01I met him in North Blyth to hear what he has in store for his latest purchase.
0:39:01 > 0:39:03Ian, great to meet you. Congratulations.
0:39:03 > 0:39:07- Thank you very much.- Tell me why you wanted to buy this place.
0:39:07 > 0:39:10Why did I want to buy this place? It was a keen price, a very good price.
0:39:10 > 0:39:15Always keen to buy where there is some profit in the deal before you start.
0:39:15 > 0:39:18It will rent out quickly,
0:39:18 > 0:39:22so the yield will be between 10% and 12%, so that's good.
0:39:22 > 0:39:25So a nice one to add to our portfolio.
0:39:25 > 0:39:28- Obviously, you've done this sort of thing before.- Yes.- How many times?
0:39:28 > 0:39:32A reasonable number. We've done it for ourselves and also for other investors.
0:39:32 > 0:39:35People down in London who haven't got the time.
0:39:35 > 0:39:39We've got the time and the effort up here, so we put the effort in and they provide the cash.
0:39:39 > 0:39:43And why this area? Was it just this house that was here?
0:39:43 > 0:39:45Or do you know this area particularly?
0:39:45 > 0:39:48We've bought a number of properties in Blythe to good effect.
0:39:48 > 0:39:51You can tell from the accent, I'm not from the north-east.
0:39:51 > 0:39:55But my wife is and we moved up here about three years ago.
0:39:55 > 0:39:57This is a good area to invest, property wise.
0:39:57 > 0:39:59It's an unusual spot, isn't it?
0:39:59 > 0:40:05Sort of sandwiched in between heavy industry and the old docks and the active docks.
0:40:05 > 0:40:07Yes. It's good in some ways
0:40:07 > 0:40:10because it's out of downtown Blythe, which is nice.
0:40:10 > 0:40:14So it's relatively peaceful and quiet. I think that's good.
0:40:14 > 0:40:16You're close to the beach, which is good.
0:40:16 > 0:40:21The downside is obviously that you are fairly close to some fairly heavy industrial engineering.
0:40:21 > 0:40:24But you can't hear it where we are now,
0:40:24 > 0:40:27so if you can put that out of your mind, it's a nice place to be.
0:40:27 > 0:40:30Ian's done his research into the area -
0:40:30 > 0:40:33very important when making this kind of investment.
0:40:35 > 0:40:38His background in accountancy and property developing means
0:40:38 > 0:40:42he knows exactly what this house needs. Pretty much everything!
0:40:42 > 0:40:47You've been around the property and you've seen it needs, in certain places, more than TLC.
0:40:47 > 0:40:51The bathroom is a bit of a mess. That needs completely redoing.
0:40:51 > 0:40:54The kitchen and fireplace area needs more than TLC.
0:40:54 > 0:40:58A nice new kitchen to go in there I think could make it more homely.
0:40:58 > 0:41:03Upstairs, we'll keep the fireplaces. We can make a feature of the original fireplaces.
0:41:03 > 0:41:08And just sort of generally make it 2012, not 1812.
0:41:08 > 0:41:12Any plans to change the layout? How are you going to divide it up?
0:41:12 > 0:41:14We're going to keep the layout roughly as it is.
0:41:14 > 0:41:18The floor here, we're going to sand and strip back to bare timber.
0:41:18 > 0:41:20So that will blend in with the oak feature
0:41:20 > 0:41:23we are putting into the kitchen.
0:41:23 > 0:41:27We are going to get rid of the hearth behind us
0:41:27 > 0:41:30and just make this into a modern kitchen/diner and living room area.
0:41:30 > 0:41:33- The bathroom and toilet stays out the back?- Yes.
0:41:33 > 0:41:37There's a bit of water coming in through the ceiling
0:41:37 > 0:41:41so we're going to sort the roof out over the extension and get that tidied up.
0:41:41 > 0:41:45Then we'll put a new bathroom suite in. There's a shower going in there as well.
0:41:45 > 0:41:47A washing machine in the utility area.
0:41:47 > 0:41:53So quite a bit of work ahead, but Ian reckons on a £7,500 budget
0:41:53 > 0:41:57to see it through, with contractors doing it in just three weeks.
0:41:58 > 0:42:01- What about future plans for you? - Continue going, I think.
0:42:01 > 0:42:05It's a nice area to buy in. The yields are good.
0:42:05 > 0:42:08Like most parts of the UK at the moment, it has suffered.
0:42:08 > 0:42:10But it's still a good time to buy property.
0:42:10 > 0:42:12Congratulations and good luck with it.
0:42:12 > 0:42:17- We'll look forward to seeing how you get on.- Great stuff. Look forward to it. Cheers.
0:42:17 > 0:42:20Ian certainly seems to know his onions.
0:42:20 > 0:42:22He's got himself a good little property.
0:42:22 > 0:42:25He's going to keep to a very tight budget
0:42:25 > 0:42:30and end up with something which is delivering him very desirable yields.
0:42:30 > 0:42:34How will he get on sorting it out? You can find out later in the show.
0:42:36 > 0:42:39It's time now to go back to those properties
0:42:39 > 0:42:41and see how the owners have got on.
0:42:41 > 0:42:44Have they managed to stick to their timescales and budgets?
0:42:44 > 0:42:45Let's find out.
0:42:47 > 0:42:50Back now to the beautiful Kent village of Great Chart.
0:42:52 > 0:42:57And this three-bed cottage, hidden away behind the neighbouring properties with limited access.
0:43:01 > 0:43:05It was bought for £140,000 by David, a chartered surveyor
0:43:05 > 0:43:08who works for the local authority, and his wife, Elaine,
0:43:08 > 0:43:10who runs their guesthouse in Canterbury.
0:43:13 > 0:43:17It had failed to reach its reserve at the auction and was withdrawn.
0:43:17 > 0:43:21But David's subsequent offer of £140,000 was accepted.
0:43:22 > 0:43:25They planned to refurbish and then rent it out.
0:43:25 > 0:43:29Although David hadn't viewed inside the cottage before buying it,
0:43:29 > 0:43:31he had taken Elaine to see the outside.
0:43:31 > 0:43:36He's very sneaky. He brought me here and said, "There's a little cottage at the auction."
0:43:36 > 0:43:39Knowing full well he was going to the auction.
0:43:39 > 0:43:43He said, "You can have a sneaky day off and come to the auction."
0:43:43 > 0:43:45It didn't sell and he said, "Shall we buy it?"
0:43:45 > 0:43:48I went... And he'd gone!
0:43:50 > 0:43:52It's now just over three months later.
0:43:52 > 0:43:55The living room has been decorated in neutral tones.
0:43:55 > 0:43:57There are new carpets and curtains
0:43:57 > 0:44:00and the cottage has been let out to a young family.
0:44:03 > 0:44:07The fireplace has been retained and the room now feels very homely.
0:44:09 > 0:44:12But it's the kitchen that has seen the majority of the work.
0:44:15 > 0:44:18It's been re-tiled, new appliances have been installed
0:44:18 > 0:44:21and now feels much more like a cottage kitchen.
0:44:22 > 0:44:25Elaine was not able to meet us as she was unwell.
0:44:26 > 0:44:30So it was up to David to explain the work that's taken place here.
0:44:32 > 0:44:37In the kitchen, my wife and I have re-tiled the floor.
0:44:37 > 0:44:40We've had a kitchen fitter in to put the wall and floor units in,
0:44:40 > 0:44:42put the work surfaces in.
0:44:42 > 0:44:48We've had the wall splashbacks tiled. There's new lighting. There are still a few bits to do.
0:44:48 > 0:44:50There's a canopy to go above the cooker.
0:44:50 > 0:44:52That will come next week or the week after.
0:44:52 > 0:44:55The last thing we want to do but it's not there yet,
0:44:55 > 0:44:59is put a new log burner in to leave the place looking comfortable and warm and cosy.
0:44:59 > 0:45:01We think it has scrubbed up really well
0:45:01 > 0:45:04and we're pleased because we think it's important.
0:45:04 > 0:45:09We want the tenant to enjoy their stay here and feel comfortable and hopefully they'll stay a long time.
0:45:12 > 0:45:15Upstairs, the three bedrooms have been nicely decorated
0:45:15 > 0:45:18with more of those muted and subtle colours.
0:45:20 > 0:45:22It looks like the young family have made it home.
0:45:24 > 0:45:26I'm pleased so many original features remain
0:45:26 > 0:45:31and the walls have been replastered where the new wiring was installed.
0:45:33 > 0:45:36But David decided not to make a feature of the floorboards.
0:45:37 > 0:45:42He's carpeted most of the house at the request of the tenant.
0:45:42 > 0:45:44The bathroom was already in decent order,
0:45:44 > 0:45:47but changing the colour scheme was a good call
0:45:47 > 0:45:49and obviously appealed to the new occupants.
0:45:51 > 0:45:55I'm very pleased that we did get a tenant in fairly quickly.
0:45:55 > 0:45:59There is a demand for rented properties around this area,
0:45:59 > 0:46:02so I think there would have been plenty of choice.
0:46:02 > 0:46:05But it's important to get a good tenant and one you're happy with.
0:46:05 > 0:46:09Outside, they had intended to replace the windows
0:46:09 > 0:46:14but decided to postpone that until the summer so they can change the guttering at the same time.
0:46:16 > 0:46:21They'd set a budget of £10,000. So how has that held out?
0:46:21 > 0:46:25I think we stuck fairly closely to the originally estimated budget.
0:46:25 > 0:46:27We haven't skimped on the rewire.
0:46:27 > 0:46:30We rewired the whole house, which includes smoke alarms live wired.
0:46:30 > 0:46:32Health and safety is important.
0:46:32 > 0:46:35We want our tenants to feel safe and comfortable in the house.
0:46:35 > 0:46:39Why skimp when you could have a long-term tenant that's happy to stay here?
0:46:41 > 0:46:46David paid £140,000 at the auction and his spend so far is £10,000.
0:46:46 > 0:46:50However, that will increase with the extra work in the kitchen,
0:46:50 > 0:46:53plus the windows and guttering.
0:46:54 > 0:46:58Thankfully, the concerns about access have been resolved.
0:46:58 > 0:47:00But the parking issue is still being looked at.
0:47:03 > 0:47:06Although the cottage hasn't needed any major work,
0:47:06 > 0:47:09David did take a risk by not viewing it beforehand.
0:47:09 > 0:47:12As a chartered surveyor, I think I've probably done things
0:47:12 > 0:47:15that I wouldn't advise any of my clients to do.
0:47:15 > 0:47:19One of which is certainly not to buy at auction without seeing the property.
0:47:19 > 0:47:22I'd always advise my clients not to do as I have done
0:47:22 > 0:47:25but to take advice and inspect your properties before you buy them.
0:47:25 > 0:47:27Very good advice, David.
0:47:27 > 0:47:31With an outlay so far of around £10,000,
0:47:31 > 0:47:33added to the £140,000 purchase price,
0:47:33 > 0:47:40the couple's total investment here at the moment is around 150 grand.
0:47:40 > 0:47:44Time to hear what two local estate agents think of the cottage.
0:47:46 > 0:47:49It's certainly a marked improvement on how it was before.
0:47:49 > 0:47:51There's a little bit more work to do.
0:47:51 > 0:47:53I would look into changing the windows,
0:47:53 > 0:47:57finishing off the kitchen and doing the rest of the decorating.
0:47:57 > 0:48:02My first impression is that it has been done to a good order. A few things still to do.
0:48:02 > 0:48:06I would recommend touching up outside on the brickwork.
0:48:06 > 0:48:09Also, just completely finish refurbishing the kitchen.
0:48:10 > 0:48:14David and Elaine already have tenants in the property,
0:48:14 > 0:48:18but are they getting the right rental income in its current condition?
0:48:19 > 0:48:24I would expect an income of around about £795 per calendar month.
0:48:24 > 0:48:26If the property were to go onto the rental market,
0:48:26 > 0:48:32it would achieve between £725 to £750 per calendar month.
0:48:32 > 0:48:36In fact, they're getting £700 a month from their long-term tenants,
0:48:36 > 0:48:40which works out at a decent yield of around 5.5%.
0:48:42 > 0:48:43That's very encouraging.
0:48:43 > 0:48:48We've let it below the market slightly, but I was happy to do that to keep a good tenant happy
0:48:48 > 0:48:51and keep ourselves happy and keep the continuity.
0:48:51 > 0:48:55So far, David has got £150,000 invested here.
0:48:55 > 0:48:58How much is the cottage now worth in its current condition?
0:49:00 > 0:49:03If we were to market this property in its current condition,
0:49:03 > 0:49:06I would set a marketing price of £175,000.
0:49:06 > 0:49:09The property in its current condition,
0:49:09 > 0:49:12I feel we would put it on the market for £180,000.
0:49:12 > 0:49:16So a potential growth profit of £25,000 to £30,000
0:49:16 > 0:49:18once the rest of the work is completed.
0:49:18 > 0:49:21How much could the place be worth then?
0:49:23 > 0:49:28Once the work has been finished to the kitchen and also the windows replaced,
0:49:28 > 0:49:31I believe the property would be worth £185,000.
0:49:31 > 0:49:33Once the refurbishment has been finished,
0:49:33 > 0:49:37I would expect the property to go to market at £180,000.
0:49:37 > 0:49:40That's not bad. It probably covers the costs of doing the improvements.
0:49:40 > 0:49:43It may not make much more than that but that's fair enough.
0:49:44 > 0:49:48That means valuations could be even higher once the parking is sorted.
0:49:50 > 0:49:53Is David pleased with those figures?
0:49:53 > 0:49:57I am, but I'm not really looking to sell. This is a long-term hold.
0:49:57 > 0:49:59It may well be that I end up living here.
0:49:59 > 0:50:01My wife has told me that if I get old and crotchety,
0:50:01 > 0:50:04then I will be living alone and this is where I'll be going!
0:50:04 > 0:50:08So perhaps it's worthwhile hanging onto for a while longer!
0:50:10 > 0:50:14It's back now to the beautiful beaches of Northumberland
0:50:14 > 0:50:16and the small village of North Blyth.
0:50:16 > 0:50:21It was here that I met Ian who was hoping to reap a healthy little profit
0:50:21 > 0:50:25from this three-bedroom terraced house that he bought for £22,500.
0:50:25 > 0:50:29Although his background is as a chartered accountant,
0:50:29 > 0:50:33Ian now spends most of his time developing properties.
0:50:33 > 0:50:37This is the latest addition to his portfolio based in the north-east.
0:50:37 > 0:50:39Tell me what you are going to do to sort it out.
0:50:39 > 0:50:43It needs, in certain places, more than TLC.
0:50:43 > 0:50:46The bathroom is a bit of a mess. That needs redoing.
0:50:46 > 0:50:49The kitchen and fireplace area needs more than some TLC.
0:50:49 > 0:50:53A new kitchen to go in there, I think could make it more homely.
0:50:53 > 0:50:57And generally, you know, make it 2012 not 1812.
0:50:57 > 0:51:03But before Ian can make any overtures, 1812 or otherwise, with this one on the property market,
0:51:03 > 0:51:07I reckoned it wasn't so much TLC it needed but more like all-out war.
0:51:18 > 0:51:21OK. Maybe that's a bit too dramatic.
0:51:21 > 0:51:26But four weeks later, we returned to see if Ian had got this place into the 21st century.
0:51:29 > 0:51:32Well, it's looking pretty good.
0:51:32 > 0:51:36The living room has been redecorated and re-carpeted.
0:51:42 > 0:51:45Over now to Ian to tell us about the kitchen.
0:51:47 > 0:51:50As you can see, we've completely transformed the kitchen area.
0:51:50 > 0:51:55We've ripped out the old sink, put in new units. Made it much brighter and lighter.
0:51:55 > 0:51:58Over here, we've ripped out that dingy kitchen area
0:51:58 > 0:52:01and put in nice white tiles, brand-new units.
0:52:01 > 0:52:05It looks much lighter and brighter and generally, we're pleased with it.
0:52:05 > 0:52:09It's amazing what a bit of redecoration and lighting can do.
0:52:12 > 0:52:15And upstairs, it's the same story.
0:52:15 > 0:52:18In the front bedroom, the bow-tied bunny has hopped off
0:52:18 > 0:52:22and the rooms have been redecorated and re-carpeted.
0:52:22 > 0:52:27The original fireplace is revived, and it's the same with the second bedroom.
0:52:27 > 0:52:32The box room has been done in the same decor with all traces of damp eliminated.
0:52:33 > 0:52:37Back on the ground floor, the bathroom has come up whiter than white.
0:52:39 > 0:52:43You'll remember the appalling mural on this wall over here
0:52:43 > 0:52:45and how damp it was and how unpleasant
0:52:45 > 0:52:47and generally unwelcoming it was.
0:52:47 > 0:52:50We've got rid of the mural and put some cladding in.
0:52:50 > 0:52:53We've put a new shower in. It's warmer, lighter,
0:52:53 > 0:52:56and like the kitchen, it's completely transformed the two key areas
0:52:56 > 0:52:58of the house as far as we are concerned.
0:52:59 > 0:53:03So overall, this has been a straightforward cosmetic refurbishment
0:53:03 > 0:53:06with the addition of rewiring and re-plumbing.
0:53:06 > 0:53:08But outside, things changed.
0:53:08 > 0:53:10The garden has been tidied up
0:53:10 > 0:53:13but the heat exchange unit is still in place.
0:53:13 > 0:53:17However, it hasn't all been totally pain-free.
0:53:17 > 0:53:22The problem with the roof, we got that sorted fairly quickly and made it watertight.
0:53:22 > 0:53:25We then had to do a bit more work in the lobby area
0:53:25 > 0:53:28than we had anticipated because of the damage from the damp.
0:53:28 > 0:53:32And even though it's overrun its schedule by one week, from three to four weeks,
0:53:32 > 0:53:36Ian reckons he's got a good addition to his portfolio.
0:53:36 > 0:53:38And credit for that where credit's due.
0:53:38 > 0:53:42We've got a great builder we work with and we meet with him at the start
0:53:42 > 0:53:43and let him get on with it.
0:53:43 > 0:53:45Again, he's done a super job for us.
0:53:45 > 0:53:47And more importantly,
0:53:47 > 0:53:52got the renovation done under the budget of £7,500, at £7,250.
0:53:54 > 0:53:57With the purchase price of £22,500,
0:53:57 > 0:54:00Ian has spent just under £30,000 here.
0:54:00 > 0:54:05So will he cash in on his latest investment or add it to his portfolio?
0:54:05 > 0:54:07I guess it depends what it values at.
0:54:07 > 0:54:09I think we'd like to flip if we can.
0:54:09 > 0:54:12The market is picking up in the area, which is good.
0:54:12 > 0:54:15If there is no interest, then we will let it out.
0:54:16 > 0:54:18To help Ian make up his mind,
0:54:18 > 0:54:22it's time to hear what two local estate agents make of his handiwork.
0:54:24 > 0:54:27Vast improvement. Very attractive.
0:54:27 > 0:54:32Modern kitchen has been fit and bathroom. Very tidy throughout.
0:54:32 > 0:54:35Property is lovely inside and out. Clean lines right through.
0:54:35 > 0:54:38New carpets. New recently refitted kitchen.
0:54:40 > 0:54:41How do the figures stack up?
0:54:41 > 0:54:45Remember, Ian spent just under £30,000 on the property.
0:54:45 > 0:54:48So will selling it on cover his outlay?
0:54:49 > 0:54:51Back on the open market,
0:54:51 > 0:54:55I would advise an asking price of between £50,000 and £55,000.
0:54:55 > 0:55:01I would market this property for around about £44,950.
0:55:01 > 0:55:04I would have said between £50,000 and £52,500.
0:55:04 > 0:55:07So if they valued it at 55, that is quite good.
0:55:07 > 0:55:09There is a spread there
0:55:09 > 0:55:13but I think the £44,950 is for a quick sale.
0:55:13 > 0:55:20Even a quick sale could earn Ian a pre-tax profit of just over £15,000,
0:55:20 > 0:55:24while that upper sales figure of £55,000 could mean a profit
0:55:24 > 0:55:28of just over £25,000 minus the usual taxes and expenses.
0:55:28 > 0:55:31How do the rental incomes compare?
0:55:33 > 0:55:34Generally, for the area,
0:55:34 > 0:55:38we'd be looking at about £350 to £400 per calendar month.
0:55:38 > 0:55:42We would rent this property out for £400 per calendar month.
0:55:42 > 0:55:46That sounds about fair. We were banking on around £375, maybe £395 if we were lucky.
0:55:46 > 0:55:49So that's good. I'm happy with that.
0:55:49 > 0:55:51I'm not surprised!
0:55:51 > 0:55:54A rental income of £400 per calendar month
0:55:54 > 0:55:58could mean an excellent annual yield of around 16%.
0:55:58 > 0:56:01So sale or rental, both offer a good return.
0:56:01 > 0:56:03Has this helped Ian make up his mind?
0:56:03 > 0:56:07I think we'll try and sell initially, but equally
0:56:07 > 0:56:10we are quite happy to hold it and let it out at that sort of rental.
0:56:10 > 0:56:13That's a reasonable return on our investment.
0:56:15 > 0:56:17For now then, Ian is keeping his options open.
0:56:17 > 0:56:21A sensible approach in an unstable property market.
0:56:21 > 0:56:25But he does have one golden rule for investing in property,
0:56:25 > 0:56:27which all budding developers should note.
0:56:27 > 0:56:30You make your money when you buy, not when you sell.
0:56:30 > 0:56:33If you buy at a keen price, that's when you make a profit.
0:56:33 > 0:56:36Keep it sensible, keep your budgets realistic.
0:56:36 > 0:56:40It's not a house for you to live in, it's a house for you to rent out or sell on.
0:56:40 > 0:56:43So don't make it perfect, just get it habitable to sell on.
0:56:50 > 0:56:53We'll have plenty more tantalising tales
0:56:53 > 0:56:55from the auction rooms for you next time.
0:56:55 > 0:57:00So join us then for more highs and lows, buying homes under the hammer.
0:57:00 > 0:57:02- Goodbye.- Goodbye.
0:57:23 > 0:57:26Subtitles by Red Bee Media Ltd