0:00:02 > 0:00:04Whether you are buying a home as a house or an investment,
0:00:04 > 0:00:07you will want to make sure that you bought wisely.
0:00:07 > 0:00:08It can be difficult to find,
0:00:08 > 0:00:11but what you're looking for is value for money.
0:00:11 > 0:00:15And one way we think you can find that is buying at auction.
0:00:40 > 0:00:45From rundown flats to super semis to gorgeous sprawling mansions,
0:00:45 > 0:00:47there are all sorts of properties on offer at auction.
0:00:47 > 0:00:50Yes, and these are the properties that had our buyers
0:00:50 > 0:00:53reaching for their chequebooks on today's show.
0:00:55 > 0:00:58In Balham, South London, when I say compact and bijou...
0:00:58 > 0:01:03You cannot be prepared for how small this space is. This is it!
0:01:04 > 0:01:07Whereas, this two-bed bungalow in County Durham
0:01:07 > 0:01:10seems to be getting bigger and bigger.
0:01:10 > 0:01:14It starts out quite small and has had bits added on to it over time.
0:01:14 > 0:01:17And in Mid Glamorgan,
0:01:17 > 0:01:20I find an ex-miner's house in touch with its feminine side.
0:01:20 > 0:01:24Now, I am all for a bit of colour, but is it really pretty in pink?
0:01:25 > 0:01:28All these properties were sold at auction.
0:01:28 > 0:01:31We'll find out who bought them and what they paid for them
0:01:31 > 0:01:33when they went under the hammer.
0:01:33 > 0:01:34It's yours, sir.
0:01:39 > 0:01:41Today I am in Balham, Southwest London,
0:01:41 > 0:01:45and it's time to dig out those flapper dresses and two-tone shoes -
0:01:45 > 0:01:48we are taking a trip back to the 1930s.
0:01:50 > 0:01:52A two-minute walk from Balham Tube Station,
0:01:52 > 0:01:55and I am here to see today's auction lot.
0:01:55 > 0:01:59It's in this eight-story beautiful Art Deco block.
0:01:59 > 0:02:01And I can't wait to have a look at this one.
0:02:01 > 0:02:04There is so much to tell you about.
0:02:04 > 0:02:07So, get comfy because I'm going to investigate.
0:02:09 > 0:02:11Investigate is the right word
0:02:11 > 0:02:14because the building, with its Art Deco charm,
0:02:14 > 0:02:17was actually used as the location for an episode
0:02:17 > 0:02:19of Agatha Christie's Poirot.
0:02:19 > 0:02:23I wonder if today's lot will exercise my little grey cells.
0:02:25 > 0:02:29This impressive block was built in 1937
0:02:29 > 0:02:34and it was described at the time as a magnificent up-to-date building,
0:02:34 > 0:02:36providing distinctive accommodation.
0:02:36 > 0:02:40Central heating, constant hot water, water softener
0:02:40 > 0:02:46and a radio with a choice of two programmes were basic features.
0:02:46 > 0:02:49Now, the water softener and the radio don't come with the property
0:02:49 > 0:02:52any more, I'm afraid, but the central heating and the hot water does.
0:02:52 > 0:02:56So, how much for a studio flat in this block?
0:02:56 > 0:03:00200,000? 150,000 perhaps?
0:03:00 > 0:03:06No, the guide was set at a very reasonable £70,000.
0:03:06 > 0:03:08Great value for this part of the capital.
0:03:13 > 0:03:16Mm. Period charm in a sought-after area of London,
0:03:16 > 0:03:19so how come the price tag is so low?
0:03:19 > 0:03:22Maybe I need the help of that funny little Belgian man.
0:03:24 > 0:03:26Oh, my goodness.
0:03:26 > 0:03:31Wow! The Art Deco features inside are just incredible!
0:03:31 > 0:03:35It is such a beautiful, beautiful building.
0:03:35 > 0:03:38You've got this wonderful sweeping staircase behind me,
0:03:38 > 0:03:40these big pillars.
0:03:40 > 0:03:42There is beautiful, stylised furniture over here.
0:03:42 > 0:03:45This is the concierge service.
0:03:45 > 0:03:47I am so excited.
0:03:47 > 0:03:50I am going to go up and have a good look around the flat.
0:03:51 > 0:03:55It's a great start for sure.
0:03:55 > 0:03:59Up the sweeping staircase and it's not looking quite so grand,
0:03:59 > 0:04:02but fingers crossed for the studio flat itself.
0:04:03 > 0:04:07So, there's a bathroom...
0:04:07 > 0:04:08and...
0:04:08 > 0:04:10This is the main room?
0:04:11 > 0:04:14Yes. This is the main room. Hold on.
0:04:14 > 0:04:17Have I missed something?
0:04:17 > 0:04:22You cannot be prepared for how small this space is. This is it!
0:04:22 > 0:04:25Honestly, I am quite shocked.
0:04:25 > 0:04:28But this studio used to be what they called the guest room.
0:04:28 > 0:04:32It was actually hired by owners of flats for their guests to use
0:04:32 > 0:04:34whilst visiting.
0:04:34 > 0:04:37So they only had a bedroom and a bathroom,
0:04:37 > 0:04:38which is what you've got here.
0:04:38 > 0:04:40No need for a kitchen, obviously.
0:04:40 > 0:04:42This was a later addition.
0:04:42 > 0:04:45So you can see it is a sort of afterthought.
0:04:45 > 0:04:48The layout here, it just does not work.
0:04:48 > 0:04:52An overly large bathroom in there and a teeny tiny,
0:04:52 > 0:04:56little kitchenette, which is - look - not even plugged in.
0:04:56 > 0:04:59This whole space requires a serious rethink.
0:04:59 > 0:05:02I am a bit disappointed internally, I have to say.
0:05:04 > 0:05:09There is barely enough room to swing a kitten here, let alone a cat.
0:05:09 > 0:05:11But I am not giving up on this one just yet.
0:05:11 > 0:05:15Time to think Japanese pod living or railway carriage even.
0:05:15 > 0:05:16First things first,
0:05:16 > 0:05:20shrink the oversized bathroom down to the neatest of shower rooms.
0:05:20 > 0:05:23Squeeze in a seriously compact and bijou kitchenette,
0:05:23 > 0:05:27a fold-down bed perhaps and any other space-saving stuff
0:05:27 > 0:05:30you can think of. And it might just work.
0:05:32 > 0:05:35What does the local estate agent think?
0:05:35 > 0:05:37My personal thoughts on it are
0:05:37 > 0:05:40that it would probably be better as a rental investment
0:05:40 > 0:05:43than someone who is going to be living there full time.
0:05:43 > 0:05:46It would be ideal for somebody who, say, travels a lot,
0:05:46 > 0:05:48or comes up to London for work
0:05:48 > 0:05:51and just need somewhere to stay for the night,
0:05:51 > 0:05:55somewhere safe and secure, which it is here, obviously.
0:05:56 > 0:06:00Someone living there full-time, I'm not sure that it's perfect.
0:06:01 > 0:06:06How could you fit the place out to make most of it?
0:06:06 > 0:06:09On the subject of furniture, I think you haven't much room
0:06:09 > 0:06:11for anything other than what you'll be sleeping on.
0:06:11 > 0:06:15So, look out for a really attractive day bed or sofa bed.
0:06:15 > 0:06:20You'll have the kitchen area there. You don't need a table or anything.
0:06:20 > 0:06:22You could put a television up on the wall.
0:06:22 > 0:06:26And a chair for a guest.
0:06:27 > 0:06:30OK, and what kind of rental income might you be looking at
0:06:30 > 0:06:32for the flat?
0:06:32 > 0:06:38This property would expect to achieve in the region of £650 to £675
0:06:38 > 0:06:39per month.
0:06:39 > 0:06:44And if the purchaser were to do the flat up and sell it on?
0:06:44 > 0:06:46When renovated,
0:06:46 > 0:06:48I would suggest marketing this property in the region
0:06:48 > 0:06:51of £120,000 to £125,000.
0:06:54 > 0:06:56It certainly is a compact studio, to say the least.
0:06:56 > 0:06:59It requires a layout rethink,
0:06:59 > 0:07:04but this building has got bags of charm and I think I love it.
0:07:04 > 0:07:07It's tiny, but is a great one to go for.
0:07:07 > 0:07:10Let's see who agreed with me when it went under the hammer.
0:07:12 > 0:07:15That brings us now to lot 105.
0:07:15 > 0:07:16Second-floor studio flat.
0:07:16 > 0:07:19Who'd like to get me started on this?
0:07:21 > 0:07:22100,000 anywhere?
0:07:25 > 0:07:27How about 80, then? Let's give it a bit of discount.
0:07:27 > 0:07:2980,000, should be cheap enough.
0:07:30 > 0:07:34I wouldn't go too much lower than that.
0:07:34 > 0:07:38Thank you. 75. Let's start with... 75, I've got.
0:07:38 > 0:07:39Thank you. 76.
0:07:39 > 0:07:4177.
0:07:42 > 0:07:4578. 79.
0:07:46 > 0:07:4880,000. 81.
0:07:48 > 0:07:53After a slow start, bidding did get going and the price crept up
0:07:53 > 0:07:56over the £100,000 mark.
0:07:56 > 0:07:58With you.
0:07:58 > 0:08:01103 for the first, 103 for the second,
0:08:01 > 0:08:03103 for the third and final time.
0:08:03 > 0:08:06All done? How much? 104?
0:08:06 > 0:08:08Both together, yeah? 104.
0:08:08 > 0:08:10105.
0:08:10 > 0:08:12106.
0:08:12 > 0:08:14107. No?
0:08:14 > 0:08:17106 for the first, 106 for the second,
0:08:17 > 0:08:20106 for the third and final time.
0:08:20 > 0:08:23All done? Sold, 106. Well bought.
0:08:24 > 0:08:28The man who snapped up this slip of a property for 106,000
0:08:28 > 0:08:32was Girish, who attended the auction with his son, Prasun.
0:08:32 > 0:08:36# All the small things
0:08:36 > 0:08:39# True care truth brings... #
0:08:39 > 0:08:42This was their first ever time at a property auction
0:08:42 > 0:08:46and they bought the flat as a means of propping up Girish's pension.
0:08:46 > 0:08:48I met up with the father-and-son combo in the lobby
0:08:48 > 0:08:51of the building, as the flat was just too small for us all.
0:08:52 > 0:08:56- Girish and Prasun, congratulations.- Thank you.
0:08:56 > 0:09:00So, it here we are in this amazing building.
0:09:00 > 0:09:02You bought your studio flat.
0:09:02 > 0:09:07- Did you see it before you bid for it on auction day?- No, we didn't.
0:09:07 > 0:09:10What happened was we saw the document that came out.
0:09:10 > 0:09:12It was 186 pages.
0:09:12 > 0:09:15And I was reading through it
0:09:15 > 0:09:18and I sort of got tired halfway.
0:09:18 > 0:09:20But I read the essential bits.
0:09:20 > 0:09:22It was 150 year lease on it.
0:09:22 > 0:09:25I did a little research on the building
0:09:25 > 0:09:28and it turns out the building has a really nice history.
0:09:28 > 0:09:32So we took the risk with that when we got to auction, I think.
0:09:32 > 0:09:33So, Girish,
0:09:33 > 0:09:37what did you think when you saw this place for the first time?
0:09:37 > 0:09:38Were you excited?
0:09:38 > 0:09:39Oh, yes, of course.
0:09:39 > 0:09:43I never had seen such a big property before.
0:09:43 > 0:09:45That was impressive.
0:09:45 > 0:09:46Very impressing.
0:09:46 > 0:09:50But then I'm sure the fun stopped when you opened your front door.
0:09:50 > 0:09:53I saw the plan beforehand, one side,
0:09:53 > 0:09:58and we... It said kitchenette in the catalogue.
0:09:58 > 0:10:00But we couldn't figure out where it would be.
0:10:00 > 0:10:05So we thought surely it couldn't have been in the studio itself,
0:10:05 > 0:10:10but when we actually went in, there was a big, unconnected kitchen sink
0:10:10 > 0:10:12just built into the wall.
0:10:12 > 0:10:15So initially, were you disappointed?
0:10:15 > 0:10:19We were. We were a little bit scared that we overpaid for the property.
0:10:19 > 0:10:23But we talked to our estate agent and he assured us
0:10:23 > 0:10:26that he has sold properties for more.
0:10:26 > 0:10:30Or very close to what we paid for it.
0:10:30 > 0:10:34So, we were...sort of... That calmed us down a little bit.
0:10:35 > 0:10:39Sounds like Girish and Prasun will have to be economical with space
0:10:39 > 0:10:40and their budget on this one
0:10:40 > 0:10:44if they want to make a decent return on their investment.
0:10:45 > 0:10:48- So what are your plans? - We have very little space,
0:10:48 > 0:10:50but we'll try to make the most of it
0:10:50 > 0:10:52and work to a really high standard.
0:10:52 > 0:10:53There needs to be a kitchenette
0:10:53 > 0:10:56and the bathroom is unusually big.
0:10:56 > 0:11:00So our plan is to take half the bathroom and turn it into a kitchen.
0:11:00 > 0:11:02Instead of the bath that is currently there,
0:11:02 > 0:11:06- we are going to put a shower tray in there.- What is your budget?
0:11:06 > 0:11:09- £5,000.- You'll be knocking a few walls down, aren't you?
0:11:09 > 0:11:11Or just creating a bit more space.
0:11:11 > 0:11:15You're going to probably need permission to do something like that.
0:11:15 > 0:11:17Yeah. We have talked to the office.
0:11:17 > 0:11:21They have an in-house office where we have access to the freeholder
0:11:21 > 0:11:22quite easily.
0:11:22 > 0:11:24So we are going to submit the drawings.
0:11:24 > 0:11:27We should get the drawings back and, as soon as we do,
0:11:27 > 0:11:30we'll start the work and start knocking the walls down.
0:11:30 > 0:11:33£5,000. Girish, what is the timescale?
0:11:33 > 0:11:35About four weeks.
0:11:35 > 0:11:38Are you going to be letting it or selling it on or don't know?
0:11:38 > 0:11:40We don't know yet.
0:11:40 > 0:11:44We'll decide after we've done it up, made it look nice and livable.
0:11:46 > 0:11:49Well, it will be great to see what they do here.
0:11:49 > 0:11:51But I can't help thinking Girish and Prasun would have
0:11:51 > 0:11:55passed this over if they had actually looked around the studio
0:11:55 > 0:11:56before buying.
0:11:58 > 0:12:01Do you now regret not doing as much research as you should have?
0:12:01 > 0:12:05Not regretting, but I would say a different way, that
0:12:05 > 0:12:10we got a first time buy, first time auction entry.
0:12:10 > 0:12:12And now we have learned.
0:12:12 > 0:12:13Guys, good luck with everything.
0:12:13 > 0:12:16I am really excited for you.
0:12:16 > 0:12:20- Girish.- Thank you very much. - Thank you.- Thank you.
0:12:20 > 0:12:26Timescale, four weeks. Cash, £5,000. Really?
0:12:26 > 0:12:29OK, so it's not huge inside,
0:12:29 > 0:12:32but there is quite a bit of work to do before it is ready.
0:12:32 > 0:12:35But what will they do with it once it's complete?
0:12:35 > 0:12:38Rent it out? Sell it on?
0:12:38 > 0:12:42Will the new owners think it is a little bit small to live in?
0:12:42 > 0:12:46Let's wait and see what happens. You can find out later in the programme.
0:12:49 > 0:12:54This is the little market town of Crook in County Durham,
0:12:54 > 0:12:57about ten miles from the city of Durham itself.
0:12:57 > 0:13:00It is a pretty little spot surrounded by lovely countryside
0:13:00 > 0:13:03and, you know, just what you need, really.
0:13:04 > 0:13:06It is just what you may need.
0:13:06 > 0:13:09Nestled amongst this beautiful countryside, it has got a good mix
0:13:09 > 0:13:14of new and older properties. It is home to Crook Town Football Club.
0:13:14 > 0:13:17There are some great specialist shops and it lives up to its claim
0:13:17 > 0:13:21of being a market town by having two markets a week.
0:13:21 > 0:13:25# I found that warm embrace
0:13:25 > 0:13:29# At the marketplace... #
0:13:29 > 0:13:34Well, not far from Crook Town Centre is the property I'm here to see.
0:13:34 > 0:13:38Built around the 1800s, it is a two-bed bungalow
0:13:38 > 0:13:41at a guide price of 85,000 quid.
0:13:41 > 0:13:45The first thing I notice about it, nice big front garden.
0:13:45 > 0:13:48Let's hope it has got a bit of character inside.
0:13:48 > 0:13:52The garden at the side shows the bungalow's a bit of an odd shape
0:13:52 > 0:13:57and there is no garden at the back, so what you see is what you get.
0:13:57 > 0:13:58So what have we got? Nice high ceilings.
0:13:58 > 0:14:00I didn't quite expect that.
0:14:00 > 0:14:03It has a good feeling of space,
0:14:03 > 0:14:06but straight from outside into your living room.
0:14:06 > 0:14:07Obviously, cold air coming in.
0:14:07 > 0:14:10Try and maybe put a porch on that to sort that out perhaps.
0:14:10 > 0:14:13But main living room here and I guess
0:14:13 > 0:14:15that's your bedroom, or one of them, there.
0:14:15 > 0:14:17And through to the rear of the property.
0:14:20 > 0:14:24I say, because it's kind of a bit strange.
0:14:24 > 0:14:27There is the loo there, the second bedroom there and then through
0:14:27 > 0:14:30this little corridor into what is actually a decent-sized kitchen.
0:14:30 > 0:14:32Although, I noticed from the outside,
0:14:32 > 0:14:34this has got a flat roof, which isn't ideal.
0:14:34 > 0:14:37So, obviously an extension.
0:14:37 > 0:14:40The whole feeling of this property is something that has started off
0:14:40 > 0:14:42quite small and has had bits added onto it over time.
0:14:42 > 0:14:45I mean, look, there's little sort of... What's that?
0:14:45 > 0:14:48A little storage area there, or a larder.
0:14:48 > 0:14:50It really needs you to...
0:14:50 > 0:14:54I guess, in an ideal world, look at all the internals, just leave
0:14:54 > 0:14:58the exterior and really sort it out into a more practical design inside.
0:14:58 > 0:15:03# A design for life... #
0:15:03 > 0:15:05If the buyer did decide to leave as is,
0:15:05 > 0:15:08then all the rooms are a decent size,
0:15:08 > 0:15:10they just need some modernisation.
0:15:10 > 0:15:12But I think the layout could be so much better.
0:15:12 > 0:15:16The building definitely has development potential.
0:15:16 > 0:15:19There may be something that could be done with that garage to create
0:15:19 > 0:15:22even more floor space.
0:15:22 > 0:15:24With a guide price of £85,000,
0:15:24 > 0:15:27it could possibly be a great little investment.
0:15:27 > 0:15:32However, it was sold at auction under what is called Option Two.
0:15:32 > 0:15:33What does that mean?
0:15:33 > 0:15:36Well, we invited along a local property expert to explain.
0:15:36 > 0:15:39This particular property is being offered
0:15:39 > 0:15:41under the Option Two of the auction,
0:15:41 > 0:15:44which means that the buyer will put down a £3,000 deposit
0:15:44 > 0:15:45on the property,
0:15:45 > 0:15:49have 28 days to exchange a contract and a further 14 days to completion.
0:15:49 > 0:15:51This means that the buyer would have to do
0:15:51 > 0:15:55their own homework on the property prior to making their bids.
0:15:55 > 0:15:57In a more conventional auction,
0:15:57 > 0:16:01i.e. under Option One, buyers would put down a 10% deposit and exchange
0:16:01 > 0:16:03on the fall of the gavel.
0:16:03 > 0:16:06Option Two is aimed at enticing new buyers into the market.
0:16:06 > 0:16:13However, legal packs aren't usually available until after the auction.
0:16:13 > 0:16:15Checking the property out thoroughly is
0:16:15 > 0:16:18the prospective purchaser's responsibility
0:16:18 > 0:16:20If you are contemplating buying under Option Two,
0:16:20 > 0:16:22it is worth checking with the auction house
0:16:22 > 0:16:25that you understand what this entails.
0:16:25 > 0:16:28With that aside, first impressions?
0:16:31 > 0:16:34The property has been owned for a long time by the same family
0:16:34 > 0:16:38and now requires internal updating - refurbishments through the kitchen
0:16:38 > 0:16:39and bathroom and such.
0:16:39 > 0:16:43What could be done to improve this property?
0:16:43 > 0:16:46The property itself is on a limited plot. There is no rear garden.
0:16:46 > 0:16:50So it would need to be either a side, front or upward extension.
0:16:50 > 0:16:52Probably make it into a dorm room bungalow,
0:16:52 > 0:16:54removing the garage, in my opinion.
0:16:54 > 0:16:56Given these possibilities,
0:16:56 > 0:17:00how much can an investor expect to achieve if it was rented out?
0:17:00 > 0:17:04Once the property is renovated, I imagine you'd be able to achieve
0:17:04 > 0:17:07somewhere in the region of £500 to £550 per calendar month.
0:17:07 > 0:17:10And if the renovations were realised,
0:17:10 > 0:17:12how much could it fetch if sold on?
0:17:12 > 0:17:15If you put the property on the market
0:17:15 > 0:17:17as a newly converted three-bedroom property,
0:17:17 > 0:17:22then I'd suggest a recommended asking price in the region
0:17:22 > 0:17:23of £125,000 to £130,000.
0:17:24 > 0:17:27Well, it is clearly in need of some major refurbishment
0:17:27 > 0:17:32and certainly it needs some work on the layout, for sure.
0:17:32 > 0:17:34But I think, spend that money on this place
0:17:34 > 0:17:36and you've got yourself a decent little property.
0:17:36 > 0:17:39Let's see who fancied it when it went under the hammer.
0:17:42 > 0:17:45We are going to move now to lot number 27.
0:17:45 > 0:17:47It is an individual period detached bungalow,
0:17:47 > 0:17:50a few minutes' walk from the centre of Crook Town Centre.
0:17:50 > 0:17:52I need 80 to start. 80,000 bid.
0:17:52 > 0:17:55We have got off the mark with £80,000.
0:17:55 > 0:17:57Do I have anything further than 80,000?
0:17:57 > 0:18:00I've got the one bid of £80,000. 81,000.
0:18:00 > 0:18:02Back over to you for 82.
0:18:02 > 0:18:04It's at 81,000, sitting down.
0:18:04 > 0:18:07Any further in the room? It's £81,000.
0:18:07 > 0:18:1082 bid for the gentleman standing. 83.
0:18:10 > 0:18:1384. 85?
0:18:13 > 0:18:15I've got £84,000.
0:18:15 > 0:18:19Anything further? You are both out at 84. I'll take a half.
0:18:19 > 0:18:21At £84,000, we're going to sell.
0:18:21 > 0:18:23Selling once at 84.
0:18:23 > 0:18:26I will take 500. The second at 84.
0:18:26 > 0:18:30Sold for £84,000 to the gentlemen standing.
0:18:30 > 0:18:34It was a clearly very delighted Ian who got his hands
0:18:34 > 0:18:37on this great little bungalow for £84,000,
0:18:37 > 0:18:39£1,000 less than the guide price.
0:18:39 > 0:18:42Ian lives just around the corner
0:18:42 > 0:18:46and is a dental technician with a small portfolio of buy-to-lets.
0:18:46 > 0:18:49But this bungalow will be a new home for him
0:18:49 > 0:18:52and his 13-year-old son, James.
0:18:52 > 0:18:55I caught up with Ian to hear about his plans.
0:18:55 > 0:18:59- Ian, lovely to meet you. - Pleased to meet you.- Congratulations.
0:18:59 > 0:19:02- Thank you.- You look quite excited to win it, actually.
0:19:02 > 0:19:04Well, I didn't expect to get it as cheap as I did.
0:19:04 > 0:19:07I don't know what your valuations are, but I expected it to go higher.
0:19:07 > 0:19:11- Half the time I didn't expect to get my hand up.- Really?- Yeah.
0:19:11 > 0:19:13You had a bit of a whoop in the air, didn't you?
0:19:13 > 0:19:16And you bought it under Option Two, didn't you?
0:19:16 > 0:19:19Which is quite a special thing for this area in lots of ways.
0:19:19 > 0:19:21I can see the benefits of it.
0:19:21 > 0:19:24What do you understand are its benefits and how is it for you?
0:19:24 > 0:19:26It gives you more time to pay and complain.
0:19:26 > 0:19:29But to be honest, I don't think the solicitors have a lot of work on,
0:19:29 > 0:19:31so we have completed in a similar time to
0:19:31 > 0:19:34- what it would have been if it were the other option anyway.- Right.
0:19:34 > 0:19:37But you bought it without the access to a legal pack,
0:19:37 > 0:19:42so you didn't know some of the specifics of that.
0:19:42 > 0:19:44Did anything come to light?
0:19:44 > 0:19:47Not really. I think you take a chance, don't you?
0:19:47 > 0:19:49You pay your money, take a chance.
0:19:49 > 0:19:53Ian was lucky in this instance not to have any nasty surprises
0:19:53 > 0:19:55waiting for him after the auction,
0:19:55 > 0:19:59although he would've had 28 days to retract his offer
0:19:59 > 0:20:02if there was anything he was unhappy with.
0:20:02 > 0:20:05That would have lost him his £3,000 deposit, though.
0:20:05 > 0:20:09So do remember that if you are thinking of purchasing an Option Two
0:20:09 > 0:20:13auction lot, that you really must do your homework prior to the auction.
0:20:13 > 0:20:17But then, of course, that always goes for buying at auction,
0:20:17 > 0:20:18full stop.
0:20:18 > 0:20:20Tell me a bit more about you, what do you do?
0:20:20 > 0:20:23I'm a dental technician, I've done that for 30 years.
0:20:23 > 0:20:25What does that mean you actually do?
0:20:25 > 0:20:30- Basically, I mend and repair and make false teeth.- Oh, right, OK.
0:20:30 > 0:20:33- Great.- There is a local dentist here.- OK, so locally?- Yeah.
0:20:33 > 0:20:37- Fantastic. Do many people have false teeth these days?- Less and less.
0:20:37 > 0:20:40That is why I've diversified into property.
0:20:40 > 0:20:44Right. Less dentures and more into rebuilding houses
0:20:44 > 0:20:46- than people's teeth. - Yeah, exactly, yeah.
0:20:46 > 0:20:48So, tell me what you'll do to sort it out.
0:20:48 > 0:20:50Well, I have a few different plans,
0:20:50 > 0:20:53but I think, with planning permission,
0:20:53 > 0:20:56if I get planning permission,
0:20:56 > 0:21:00I might take that bedroom out there and build a lounge in that area
0:21:00 > 0:21:03- and then make the garage, this and this into bedrooms.- Oh, wow!
0:21:03 > 0:21:07I thought about moving the bathroom into the corner of the kitchen
0:21:07 > 0:21:09and using this other area as a kitchen.
0:21:09 > 0:21:12It doesn't sound like there's going to be many rooms left
0:21:12 > 0:21:14as they are at the moment.
0:21:14 > 0:21:16It depends on planning permission.
0:21:16 > 0:21:20If I get problems, I might have to leave it the way it is, but
0:21:20 > 0:21:23the main thing is get a dishwasher in cos I don't like washing up.
0:21:23 > 0:21:26- HE LAUGHS - All that to get...
0:21:26 > 0:21:28There's no dishwasher, that's a big...
0:21:28 > 0:21:33Elaborate plans to get a dishwasher.
0:21:33 > 0:21:36Why didn't you just buy a bigger house or a house that was
0:21:36 > 0:21:39a different design rather than buy this and have to do all that to it?
0:21:39 > 0:21:42Well, I think I get a better quality thing for less money.
0:21:42 > 0:21:46He'd like to get the work done for less than £20,000.
0:21:46 > 0:21:50Apart from getting tradespeople in for the important jobs,
0:21:50 > 0:21:51he'll do most of it himself.
0:21:51 > 0:21:56But a major reconfiguration like this isn't for the faint hearted.
0:21:56 > 0:21:58So, what kind of experience do you have in property?
0:21:58 > 0:22:01Well, I bought one in auction...
0:22:01 > 0:22:03What? In 2000.
0:22:03 > 0:22:06I never really bought anything since then because the prices went up.
0:22:06 > 0:22:10But... Oh, and I bought a building that I made into a pub
0:22:10 > 0:22:13three years ago, which is now a bank.
0:22:13 > 0:22:16- You kind of almost forgot that. Isn't that quite significant?- Yeah.
0:22:16 > 0:22:21Well, actually, it's more business then residential, isn't it?
0:22:21 > 0:22:24- So, you own a pub?- Yeah.- Oh, great.
0:22:24 > 0:22:26Well, I put a manager in, but I work a few shifts.
0:22:26 > 0:22:29I've learned the ropes a little bit myself.
0:22:29 > 0:22:31Right. You do diversify, then.
0:22:31 > 0:22:34Making false teeth to pouring pints to building properties.
0:22:34 > 0:22:35That's right, yeah.
0:22:35 > 0:22:39He is certainly keeping a few fingers in a few pies.
0:22:39 > 0:22:42But this property isn't a business venture,
0:22:42 > 0:22:43it is going to be his new home.
0:22:43 > 0:22:46So how long will it take before he can move in?
0:22:46 > 0:22:50- What about a timescale for doing it? - Well,
0:22:50 > 0:22:52it depends how fast I can get through the planning, I think.
0:22:52 > 0:22:55If I can get through the planning, get the planning all done,
0:22:55 > 0:22:57I can start next week stripping the paper off.
0:22:57 > 0:23:01Have a look, see if it needs any damp work doing, things like that.
0:23:01 > 0:23:04- Well, congratulations anyway. Good luck.- Thanks.
0:23:04 > 0:23:05I hope it turns out to be
0:23:05 > 0:23:08- a successful project for you. - Thanks a lot.
0:23:10 > 0:23:13Well, dental technician Ian seems to have the palate to take
0:23:13 > 0:23:19this project on, but will he find more decay than he expects?
0:23:19 > 0:23:23Will it be a bridge too far? Or will it we the crown
0:23:23 > 0:23:25in his property portfolio?
0:23:25 > 0:23:27Ahem.
0:23:27 > 0:23:29You can find out later in the show.
0:23:30 > 0:23:32Coming up, in Mid Glamorgan, Wales,
0:23:32 > 0:23:35three floors mean three times the problems.
0:23:35 > 0:23:37The list could go on. What is down here?
0:23:37 > 0:23:39Uh-oh!
0:23:40 > 0:23:41In Crook, County Durham,
0:23:41 > 0:23:46it looks as though Ian has got all of his renovation priorities right.
0:23:46 > 0:23:50I've got a dishwasher, so I don't have to do any washing up.
0:23:50 > 0:23:53But first, back in Balham,
0:23:53 > 0:23:56were any lessons learned from this first auction purchase?
0:23:56 > 0:24:00I suppose we could, next time, go and see the property.
0:24:04 > 0:24:06Back now to Balham, Southwest London,
0:24:06 > 0:24:10and this Art Deco block where Girish and his son, Prasun,
0:24:10 > 0:24:16bought this teeny-weeny studio flat at auction for 106,000.
0:24:16 > 0:24:19While the building has been used as a location for Agatha Christie's
0:24:19 > 0:24:23Poirot, there was no great mystery about what needed doing here.
0:24:23 > 0:24:26We are going to take half the bathroom
0:24:26 > 0:24:27and turn it into a kitchen.
0:24:27 > 0:24:29Instead of the bath that is currently there,
0:24:29 > 0:24:32we're going to put a shower tray in there, which is probably
0:24:32 > 0:24:34what a young professional will need.
0:24:35 > 0:24:38With a £5,000 budget and a four-week timescale,
0:24:38 > 0:24:41there wasn't much wiggle room on this one.
0:24:41 > 0:24:45Three and a half months after our first visit,
0:24:45 > 0:24:48we're back to see what has become of the studio flat.
0:24:48 > 0:24:54# Tiny bubbles make me warm all over
0:24:54 > 0:25:01# With the feeling that I'm gonna love you till the end of time... #
0:25:10 > 0:25:14Well, with Girish overseas, his son, Prasun,
0:25:14 > 0:25:17has been overseeing the work on the flat.
0:25:18 > 0:25:21If you remember, there used to be a door here.
0:25:21 > 0:25:24We took the door and the frame out in order to give it a feel of space
0:25:24 > 0:25:28and, you know, sort of freedom, you know, not so constricted.
0:25:28 > 0:25:31Secondly, there was another wall around this way,
0:25:31 > 0:25:34with a door in there, and we removed the whole wall.
0:25:34 > 0:25:37The bath which used to be behind the wall,
0:25:37 > 0:25:41that got removed, which gave us all this space free.
0:25:41 > 0:25:43Then we put a pocket door to divide the kitchen,
0:25:43 > 0:25:46which we made from scratch. There was no kitchen here before.
0:25:46 > 0:25:50So, you know, it's really made a big difference
0:25:50 > 0:25:51in doing what we've done.
0:25:54 > 0:25:57But below the Art Deco-inspired surface,
0:25:57 > 0:26:00there has been quite a bit of remedial work done here, too.
0:26:03 > 0:26:06The plumbing needed a complete overhaul.
0:26:06 > 0:26:10All new electrics have been put in. Complete new plaster and paint.
0:26:10 > 0:26:12So that's...
0:26:12 > 0:26:14It had to be done and it was done.
0:26:14 > 0:26:18Then there was the sourcing of the neatest of stuff
0:26:18 > 0:26:20to put into the flat.
0:26:20 > 0:26:23The compact kitchenette is the model of minimalist ingenuity.
0:26:23 > 0:26:26And although the sliding pocket door into the bathroom
0:26:26 > 0:26:30cost £600, it does its job pretty well.
0:26:30 > 0:26:33Let's see that smooth sliding action again.
0:26:33 > 0:26:36So, is Prasun happy with the end product?
0:26:37 > 0:26:39I am very, very happy with it.
0:26:39 > 0:26:42My dad, I sent him the pictures.
0:26:42 > 0:26:46He is abroad at the moment. I sent him the pictures and he was ecstatic.
0:26:46 > 0:26:50Obviously, we have heard from my estate agent. He loved it as well.
0:26:50 > 0:26:52So we have had good feedback already.
0:26:52 > 0:26:56We have had a lot of interest in it, so what more can I ask?
0:26:58 > 0:27:01Parsun's team was delayed in starting the work,
0:27:01 > 0:27:03but they did manage to get everything done
0:27:03 > 0:27:05within the four-week timescale.
0:27:05 > 0:27:07How about the budget?
0:27:08 > 0:27:11We were hoping to spend five grand.
0:27:11 > 0:27:17Unfortunately, due to some delays and the new electrics
0:27:17 > 0:27:22and the specialist equipment that we needed, we went over budget.
0:27:22 > 0:27:26But again, we are quite happy with that. It was £7,500.
0:27:26 > 0:27:28We were more than happy to spend that.
0:27:28 > 0:27:33£7,500 on top of the purchase price
0:27:33 > 0:27:39of 106,000, brings the total outlay here to £113,500.
0:27:39 > 0:27:40The day before filming,
0:27:40 > 0:27:45Prasun put the flat up for sale and for rent to test the water.
0:27:45 > 0:27:46We asked along
0:27:46 > 0:27:49two local estate agents to get there take on the place.
0:27:49 > 0:27:52Very contemporary feel. It has been modernized to a good standard.
0:27:52 > 0:27:56We would have potentially either a lot of first-time buyers
0:27:56 > 0:27:58or investment buyers looking to increase
0:27:58 > 0:28:00their portfolio of properties.
0:28:00 > 0:28:02So, yeah, it has been done very well.
0:28:02 > 0:28:05It looks really nice and clean and bright.
0:28:05 > 0:28:08But I am a little bit disappointed. I think I had hoped to see something
0:28:08 > 0:28:10a bit more inventive done with the space.
0:28:11 > 0:28:15Mixed reactions there. But can they agree on a sale price?
0:28:17 > 0:28:22I would recommend marketing this at 125,000, 130,000,
0:28:22 > 0:28:25with a view to getting in excess of 120,000.
0:28:25 > 0:28:27If I had to put the property onto the open market today,
0:28:27 > 0:28:30I would probably anticipate putting it on in the region of 125,000
0:28:30 > 0:28:31to £130,000.
0:28:31 > 0:28:33I think that is quite low.
0:28:33 > 0:28:40We have already put it on the market speculatively for over 135, 140.
0:28:40 > 0:28:43And we're already getting some sort of interest on it.
0:28:43 > 0:28:46And, again, it's been less than 24 hours.
0:28:46 > 0:28:48So, we're happy with the purchase.
0:28:48 > 0:28:51Even at those prices, I think we have done quite well.
0:28:51 > 0:28:53So, I am quite happy anyway.
0:28:53 > 0:28:57If you're happy, we're happy, Prasun.
0:28:57 > 0:29:00The estate agents' valuations mean a profit, before fees
0:29:00 > 0:29:05and expenses, of between £6,500 and £16,500.
0:29:05 > 0:29:06What about rental figures?
0:29:06 > 0:29:11In terms of rental income, per calendar month, I'd be looking
0:29:11 > 0:29:15to achieve a rent of somewhere in the region of about £600.
0:29:15 > 0:29:18On the rental market, I would expect this to achieve
0:29:18 > 0:29:21in the region of £600 per calendar month.
0:29:21 > 0:29:24I think they are quite a bit low.
0:29:24 > 0:29:26We've gone with an estate agent that is getting us
0:29:26 > 0:29:30viewings already for over 750, so, you know,
0:29:30 > 0:29:34we are quite happy with the estate agent we've gone with.
0:29:36 > 0:29:43In fact, since filming, they rented the flat out for £780 a month.
0:29:45 > 0:29:48But before they move on to the next auction property,
0:29:48 > 0:29:50what have they learned from their first?
0:29:52 > 0:29:55I suppose we could next time go and see the property.
0:29:55 > 0:30:00But, you know, we haven't regretted anything we've done so far,
0:30:00 > 0:30:03so if we had to do it all over again, we would.
0:30:06 > 0:30:10I have travelled to Wales today and the auction property I'm here
0:30:10 > 0:30:15to see is in a small village, and it is called Penrhiwceiber.
0:30:15 > 0:30:18Now, the village has all the amenities you would expect
0:30:18 > 0:30:19plus it is well-connected.
0:30:19 > 0:30:24It's only 18 miles from Cardiff and there is a train station,
0:30:24 > 0:30:27so we are definitely in commuter territory.
0:30:27 > 0:30:31Oh, and one more thing, the average three-bedroom property
0:30:31 > 0:30:36in the village costs just over £70,000.
0:30:35 > 0:30:36Perfect!
0:30:39 > 0:30:44You're never far from the mining heritage of this part of Wales.
0:30:44 > 0:30:48Today's property is a little slice of that history, too.
0:30:48 > 0:30:53These Victorian terraces were built for miners' families 150 years ago
0:30:53 > 0:30:57from locally quarried stone and grey slate.
0:30:57 > 0:31:00And one of them is today's auction property.
0:31:00 > 0:31:01It is this one here.
0:31:01 > 0:31:05Now, I am all for a bit of colour, but is it really pretty in pink?
0:31:05 > 0:31:08I think I'd change that. It won't suit everybody's tastes.
0:31:08 > 0:31:12But the guide price will probably appeal to everybody.
0:31:12 > 0:31:15It was set at just £27,000.
0:31:18 > 0:31:21That guide price is seriously low,
0:31:21 > 0:31:24low enough to set an alarm bell ringing, I'm afraid.
0:31:24 > 0:31:28Just what is lurking behind that pretty pink exterior?
0:31:31 > 0:31:34And it is how I imagined on the inside.
0:31:34 > 0:31:36It needs a lot of work.
0:31:36 > 0:31:38Terribly dated wallpaper,
0:31:38 > 0:31:41but you have got a really good-sized reception room.
0:31:41 > 0:31:43In fact, it is all quite spacious,
0:31:43 > 0:31:47which is making me think this could be a potentially good buy.
0:31:47 > 0:31:49Look at this. A second reception room.
0:31:49 > 0:31:51Again, lots of light coming in here.
0:31:51 > 0:31:53It does need some work.
0:31:53 > 0:31:56You need your carpets, the walls need doing, the list could go on.
0:31:56 > 0:31:58What's down here?
0:31:58 > 0:31:59Uh-oh!
0:31:59 > 0:32:02Down the stairs
0:32:02 > 0:32:05and it looks like we've run into the start of a new mineshaft.
0:32:05 > 0:32:09# Working in a coal mine Going down, down, down
0:32:09 > 0:32:13# Working in a coal mine Oops! About to slip down... #
0:32:13 > 0:32:16In all seriousness, this was the old coal store
0:32:16 > 0:32:20and needs a bit of work to make it a dry, usable space.
0:32:20 > 0:32:22And there's more on this lower ground level.
0:32:22 > 0:32:25There is also the kitchen, which is a decent size,
0:32:25 > 0:32:30the only bathroom in the property and a rather rickety lean-to porch.
0:32:31 > 0:32:35It's a decent space, but it's all worryingly damp down here.
0:32:38 > 0:32:41Pop outside to the steeply sloping garden, look back
0:32:41 > 0:32:44at the property's three levels and you can see it is going to be
0:32:44 > 0:32:48quite a trek from the bedrooms at the top floor down to the bathroom.
0:32:48 > 0:32:51So you may want to think about moving the bathroom upstairs.
0:32:51 > 0:32:53That's going to cost.
0:32:53 > 0:32:56# Back to nature... #
0:32:56 > 0:32:59Up on the first floor, there are three bedrooms.
0:32:59 > 0:33:01They're not huge and you might have to sacrifice one
0:33:01 > 0:33:03to move the bathroom.
0:33:03 > 0:33:06But for me, there is a more pressing concern.
0:33:07 > 0:33:11Mm, there are signs of damp everywhere in this house!
0:33:11 > 0:33:15It's not ideal. But it doesn't have to be a deal breaker either.
0:33:15 > 0:33:18In many cases, damp is the result of poor maintenance.
0:33:18 > 0:33:21And that's usually quite easy to rectify.
0:33:21 > 0:33:24If there is a damp patch visible inside the home,
0:33:24 > 0:33:28the cause can usually be identified from an issue on the exterior.
0:33:28 > 0:33:30Time to investigate further.
0:33:30 > 0:33:35# There's just one thing that I just can't stand
0:33:35 > 0:33:39# I can't stand the rain I can't stand the rain... #
0:33:39 > 0:33:42It looks like someone has tried to use a bit of lead to patch up
0:33:42 > 0:33:47some broken tiles, and it looks like a rather botched job.
0:33:48 > 0:33:51I would say fix or replace that
0:33:51 > 0:33:55and you'll be some way to solving the problem on the inside.
0:33:56 > 0:34:00The mid-terrace went to auction with a guide price of 27,000.
0:34:00 > 0:34:03We asked a local estate agent for his thoughts.
0:34:03 > 0:34:05What would he do with the property?
0:34:07 > 0:34:10If I was to keep this as a home, I would definitely consider
0:34:10 > 0:34:14transforming this into a two-bedroom house by moving the bathroom.
0:34:14 > 0:34:16If I was to keep it as a rental property,
0:34:16 > 0:34:19I would leave it as a three-bed to maximise the rental return.
0:34:20 > 0:34:23If the purchaser leaves the layout as it is,
0:34:23 > 0:34:27what kind of rental income might the mid-terrace achieve?
0:34:27 > 0:34:30If it was left as a three-bed property, I would estimate
0:34:30 > 0:34:34a rental value of £375 per calendar month.
0:34:35 > 0:34:39And again, if they left the bathroom where it is, did the property up
0:34:39 > 0:34:40and sold it on?
0:34:41 > 0:34:44If the property was fully refurbished,
0:34:44 > 0:34:48I would as estimate a value of between £50,000 and £55,000.
0:34:48 > 0:34:51The damp issues and the amount of work required here
0:34:51 > 0:34:53will no doubt put people off,
0:34:53 > 0:34:57and there is the added headache of the lower ground floor bathroom.
0:34:57 > 0:34:59Now, this property, I think,
0:34:59 > 0:35:02is crying out for a second loo facility up there.
0:35:02 > 0:35:05Renovating this is not going to be quick
0:35:05 > 0:35:07and it certainly won't be cheap.
0:35:07 > 0:35:08But somebody wanted it.
0:35:08 > 0:35:11Let's find out who that was as we go to auction.
0:35:11 > 0:35:17All right, we go on to lot number 19 now then, ladies and gentlemen,
0:35:17 > 0:35:22which is the three-bedroom mid-terraced house.
0:35:22 > 0:35:24Who has 30,000 to start me?
0:35:24 > 0:35:26Can I see 30 for it?
0:35:26 > 0:35:3025 then, let's get on. Five is bid, thank you. At 25,000,
0:35:30 > 0:35:33this is no money for it. At 25,000. And six?
0:35:33 > 0:35:37At 25,000, all done then?
0:35:37 > 0:35:39Is it a bid on six? Thank you.
0:35:39 > 0:35:42At 26, bid. At 26,000.
0:35:42 > 0:35:48Seven now? At 27, thank you. At £27,000. At 27.
0:35:48 > 0:35:53Half, is it now? At 27,000, half. Fresh bidder at 27,500.
0:35:53 > 0:35:57Eight if you like. £27,500.
0:35:57 > 0:36:00Eight if you like. Is it eight? Thank you. At 28.
0:36:00 > 0:36:04At 28. Half bid. At 28.5, I took it in the back.
0:36:04 > 0:36:07At 28.5. Can I see nine quickly?
0:36:07 > 0:36:09Still... 29, thank you.
0:36:09 > 0:36:13At 29,000, you are out on my right. At 29,000.
0:36:13 > 0:36:17There is the bid, make no mistake, I'm selling all the time.
0:36:17 > 0:36:19Half if you like.
0:36:19 > 0:36:24At £29,000... It's yours, sir. Thank you very much.
0:36:26 > 0:36:31That successful bid of £29,000 was placed by Cardiff-based Alex,
0:36:31 > 0:36:34a project manager, and his partner Adele, who is a doctor.
0:36:37 > 0:36:40I met up with a couple at the property to find out
0:36:40 > 0:36:44why they went for this particular mid-terrace.
0:36:44 > 0:36:49# We could've had it all
0:36:49 > 0:36:52# Rolling in the deep... #
0:36:54 > 0:36:55Guys, congratulations.
0:36:55 > 0:36:59- You must be so pleased you won this on auction day.- Yeah.
0:36:59 > 0:37:02What is the story behind you buying this? Are you property developers?
0:37:02 > 0:37:04We're starting out as property developers.
0:37:04 > 0:37:07We did up our own house last year and were quite successful
0:37:07 > 0:37:10and had it valued. So we decided to come to auction.
0:37:10 > 0:37:12We got this property in the end.
0:37:12 > 0:37:15So, Alex, when the hammer went down, and you knew you'd won it,
0:37:15 > 0:37:17what happened?
0:37:17 > 0:37:18We went to the auction and we didn't think
0:37:18 > 0:37:20we were going to buy a property,
0:37:20 > 0:37:22we just wanted to go to the auction and see what it's like.
0:37:22 > 0:37:24We ended up putting a bid in and we got it.
0:37:24 > 0:37:27Adele was grabbing me by the arm, saying, "Oh, my God, we've got it."
0:37:27 > 0:37:31And I have to get on camera, I'm shaking and sweating.
0:37:31 > 0:37:32So, wait a minute, let me get this straight,
0:37:32 > 0:37:35you weren't intending to buy this on that day.
0:37:35 > 0:37:37- You went for a little auction rehearsal.- Yeah.- Yeah.
0:37:37 > 0:37:39You thought, "We'll just see how it goes."
0:37:39 > 0:37:43- But you ended up spending £29,000. - That's right, yeah.
0:37:43 > 0:37:46Well, we went prepared with the things to get it, if we did,
0:37:46 > 0:37:48but we didn't think we'd actually get it.
0:37:48 > 0:37:50So, Adele, what sort of research did you do before you bought
0:37:50 > 0:37:52this property?
0:37:52 > 0:37:54Well, we didn't actually come into the property,
0:37:54 > 0:37:57but I spoke to the estate agent who had it on and looked
0:37:57 > 0:38:01at the pictures there and asked him what sort of work it had done to it,
0:38:01 > 0:38:04asked about the electrics, asked about the plumbing,
0:38:04 > 0:38:06what sort of work it needed doing, from that point of view.
0:38:06 > 0:38:08He let me know that the electrics were quite new,
0:38:08 > 0:38:11they had a new plumbing system installed,
0:38:11 > 0:38:13so I thought that all sounded pretty good.
0:38:13 > 0:38:19- Did he remember to tell you the state it was in?- No.
0:38:19 > 0:38:22He didn't tell me quite how bad the damp was downstairs.
0:38:22 > 0:38:25But you just take a gamble sometimes.
0:38:25 > 0:38:29- So, you really were prepared to take a rather huge risk?- Yeah, we were.
0:38:29 > 0:38:32- Even though the guide price was temptingly low?- Yeah.
0:38:32 > 0:38:35You have come unstuck a little bit now, I'm sure you've seen that.
0:38:35 > 0:38:38Yeah. It's a bit more than we thought, isn't it?
0:38:38 > 0:38:41Yeah, it's a bit more, but it's still within our budget,
0:38:41 > 0:38:42so we are not too bothered by it.
0:38:42 > 0:38:44We're going to do a lot of work ourselves.
0:38:44 > 0:38:49By not viewing their first investment project beforehand,
0:38:49 > 0:38:52Alex and Adele did not give themselves the best chance of success here.
0:38:52 > 0:38:55There is just loads of work to do.
0:38:55 > 0:38:57They have got a budget of between 7,000
0:38:57 > 0:39:01and 8,000 and a timescale of between two and three months.
0:39:01 > 0:39:04But they do at least seem to have property developing in their blood.
0:39:04 > 0:39:06I work in construction myself as a project manager,
0:39:06 > 0:39:07so I work in property.
0:39:07 > 0:39:10Adele's father does property development and helped us.
0:39:10 > 0:39:13So we've both got an upbringing in it, so we'll see how it goes.
0:39:13 > 0:39:16- Is this what you'll be doing full-time?- No.
0:39:16 > 0:39:18I work full-time as a doctor at the moment.
0:39:18 > 0:39:20- So you're a doctor!- Yeah.
0:39:20 > 0:39:23But you love property more, by the sound of things.
0:39:23 > 0:39:25Well, I love the job that I do,
0:39:25 > 0:39:28but, but this is like a hobby that I love doing,
0:39:28 > 0:39:30sort of a de-stress hobby.
0:39:30 > 0:39:33Oh, I love that coming from a doctor! A DE-STRESS hobby.
0:39:33 > 0:39:36- So, for you, this is somewhere where you can unwind.- Yeah.
0:39:36 > 0:39:39- For most people they get more stressed than ever.- No.
0:39:39 > 0:39:42I love doing it, honestly. Haven't I been happier since we bought it?
0:39:42 > 0:39:45She has been bored for a year doing nothing and I have to put up
0:39:45 > 0:39:47with it every evening, saying, "Let's do something."
0:39:47 > 0:39:48So we're doing it now.
0:39:48 > 0:39:51She sat at home yesterday with a big smile on her face from working
0:39:51 > 0:39:52all day.
0:39:52 > 0:39:55Oh! What's it like working with Alex? Is he a great...?
0:39:55 > 0:39:58Is he a good hands-on guy?
0:39:58 > 0:40:01No. I am so much better in work,
0:40:01 > 0:40:05but when it comes to getting your hands dirty, she is so much better.
0:40:05 > 0:40:07On her own, she did all the tiling, built walls,
0:40:07 > 0:40:11bossing all the electrical people about, and I just let her do it.
0:40:11 > 0:40:12And she enjoys it.
0:40:12 > 0:40:15I'll get my hands dirty when she tells me to do it.
0:40:15 > 0:40:17Hold on a minute, you're supposed to be the project manager.
0:40:17 > 0:40:19- I know.- What's going on with you two?
0:40:19 > 0:40:21I seem to do better on bigger projects, which I run.
0:40:21 > 0:40:24I can't do the refurbishment projects, and she does it herself.
0:40:24 > 0:40:28- So, it keeps her happy.- So what do you think you bring to the table?
0:40:28 > 0:40:31I actually organise a lot of stuff and deal with people and then Adele
0:40:31 > 0:40:36does all the designing and, I don't know, the hard work, really.
0:40:36 > 0:40:39I'm there digging out floors, knocking walls down
0:40:39 > 0:40:42and Alex will drag an old bucket up the stairs or something.
0:40:42 > 0:40:45- Is that really how it is?- Yeah. - Yeah, it is.
0:40:45 > 0:40:49She was shovelling the other day and I was taking everything upstairs. It shouldn't be that way.
0:40:49 > 0:40:57# Cos to my mind She's my kind of girl... #
0:40:57 > 0:40:59Well, however they divide the labour,
0:40:59 > 0:41:03Alex and Adele are opting to leave the layout as it is.
0:41:03 > 0:41:06That is probably wise, given their fairly tight budget and timescale.
0:41:06 > 0:41:09Their plan is to sell the mid-terrace on.
0:41:09 > 0:41:13If they can keep their total outlay to under 40,000,
0:41:13 > 0:41:15they could be looking at a pretty healthy profit.
0:41:17 > 0:41:18What are you going to do
0:41:18 > 0:41:22to really turn it around and make this place worthy of that price?
0:41:22 > 0:41:24I just think making it modern.
0:41:24 > 0:41:27We obviously need to take all the wallpaper off,
0:41:27 > 0:41:30just make sure the walls are skimmed, everything looks clean,
0:41:30 > 0:41:34painted all white, put new carpets down, laminate flooring downstairs,
0:41:34 > 0:41:36modern kitchen, modern bathroom.
0:41:36 > 0:41:39Just make it all up to date, modern, that someone just walks in
0:41:39 > 0:41:41and thinks that this is really nice and just buy it.
0:41:41 > 0:41:45We are hopeful that it's not needing any major work.
0:41:45 > 0:41:47That could smash our budget really.
0:41:47 > 0:41:49Is there anything you are worried about?
0:41:49 > 0:41:50- Not really.- No, not really.
0:41:50 > 0:41:52We're quite enthusiastic
0:41:52 > 0:41:54about doing it and taking on a challenge with it.
0:41:54 > 0:41:56- I'm not worried about any of it.- Guys,
0:41:56 > 0:41:59I'm looking forward to seeing the outcome. Congratulations.
0:41:59 > 0:42:02- It's been lovely to meet you both. - Thanks.- Thank you.
0:42:02 > 0:42:06So, Dr Adele needed to find a way to de-stress.
0:42:06 > 0:42:10And so she thought she'd buy herself a property that required
0:42:10 > 0:42:12a total refurbishment.
0:42:12 > 0:42:16Mm. Joking aside, buying blind is never ideal.
0:42:16 > 0:42:17A viewing is vital,
0:42:17 > 0:42:20especially when it's your first investment purchase.
0:42:20 > 0:42:22Well, I have given them a telling off,
0:42:22 > 0:42:24but let it be a lesson to you all.
0:42:24 > 0:42:26This has had budget implications
0:42:26 > 0:42:30and now they may not make the profit they had hoped for.
0:42:30 > 0:42:32How are they going to get on?
0:42:32 > 0:42:36Join me later on in the programme and you can find out.
0:42:38 > 0:42:41Well, the clock has been ticking
0:42:41 > 0:42:43and work should be well underway with our properties.
0:42:43 > 0:42:47Have those piles of dusty bricks and bags of cement gone?
0:42:47 > 0:42:49Is the paint dry on the walls?
0:42:49 > 0:42:51Let's find out.
0:42:55 > 0:42:58Back now to Crook, in County Durham, where Ian had bought
0:42:58 > 0:43:03this two-bedroom bungalow at auction for £84,000.
0:43:03 > 0:43:05He is a local dental technician,
0:43:05 > 0:43:09who has diversified into property development and also owns a pub.
0:43:09 > 0:43:12He had a budget of £20,000 and a timescale of around six months
0:43:12 > 0:43:16to turn the bungalow into a home to enjoy with his son, James.
0:43:16 > 0:43:19And the dental technician really wanted to get his teeth
0:43:19 > 0:43:21stuck into this one.
0:43:22 > 0:43:24Take the bedroom out there and build a lounge in that area.
0:43:24 > 0:43:28- And then make the garage, this and this into bedrooms.- Oh, wow.
0:43:28 > 0:43:30Then moving the bathroom into the corner of the kitchen
0:43:30 > 0:43:34and using this other area as a kitchen.
0:43:34 > 0:43:37It doesn't sound like there's going to be many rooms left
0:43:37 > 0:43:40- as they are.- Well, the main thing is get a dishwasher in,
0:43:40 > 0:43:42because I don't like washing up.
0:43:42 > 0:43:44HE LAUGHS
0:43:44 > 0:43:47Well, 16 months after our first visit, we're back
0:43:47 > 0:43:49to see if Ian and his son, James,
0:43:49 > 0:43:50are smiling from ear to ear
0:43:50 > 0:43:53or did they bite off more than they could chew?
0:44:01 > 0:44:06Now, I know that Ian had big plans, but I wasn't quite expecting this.
0:44:06 > 0:44:11The garage is moved, there is a brand-new porch, and what a porch!
0:44:11 > 0:44:13And the roof has been replaced.
0:44:13 > 0:44:16And we haven't even seen inside yet.
0:44:16 > 0:44:20The old sitting room has become the first of three bedrooms,
0:44:20 > 0:44:24which you now enter from the newly extended corridor.
0:44:24 > 0:44:27And the bedroom that was off the old sitting room is now part of
0:44:27 > 0:44:30an enormous kitchen-living room.
0:44:30 > 0:44:34The bathroom and the old larder have been knocked into a bigger
0:44:34 > 0:44:36and brighter bathroom.
0:44:36 > 0:44:39The bedroom opposite the bathroom hasn't changed much,
0:44:39 > 0:44:42but there is access to the new garage next to that.
0:44:42 > 0:44:47And the old kitchen is now a bedroom with en suite.
0:44:47 > 0:44:49It's quite a transformation
0:44:49 > 0:44:52and very different to what Ian had initially planned.
0:44:52 > 0:44:54But it has all been possible
0:44:54 > 0:44:56because he managed to increase the size of the plot.
0:44:58 > 0:45:02The land to the rear of the property, we purchased that land.
0:45:02 > 0:45:04The man was willing to sell us it.
0:45:04 > 0:45:06We've used that land to build a kitchen,
0:45:06 > 0:45:09which I think was a wise decision.
0:45:09 > 0:45:11# Doo, doo, doo, doo Da, da, doo, doo... #
0:45:11 > 0:45:13It's a great space and certainly makes a big difference
0:45:13 > 0:45:14to the bungalow.
0:45:14 > 0:45:19But extending out the back has not been completely straightforward.
0:45:19 > 0:45:23We had to buy this land at the back of the property
0:45:23 > 0:45:27because the soil was this far up, so it was creating damp.
0:45:27 > 0:45:29So with having to buy the land,
0:45:29 > 0:45:32we thought we might as well utilise this as a patio area and garden.
0:45:32 > 0:45:37So, we put patio doors in and we build a kitchen extension
0:45:37 > 0:45:41on the land to save knocking the little bedroom down at the front.
0:45:41 > 0:45:44So I think it's made a really good job of it
0:45:44 > 0:45:46and made a better property of it at the end of the day.
0:45:46 > 0:45:50While there is still a bit to do to finish things off,
0:45:50 > 0:45:53this looks like it's going to be a lovely home.
0:45:53 > 0:45:54Ian's son, James,
0:45:54 > 0:45:57seems pretty pleased with his new en suite bedroom, too.
0:45:57 > 0:46:02# And I gotta see your sweet sweet smile every day... #
0:46:03 > 0:46:07What does Ian like best about the bungalow?
0:46:07 > 0:46:08I like the big kitchen.
0:46:08 > 0:46:10I like the big bathroom.
0:46:10 > 0:46:12I like the porch from the outside.
0:46:12 > 0:46:14One of my friends just bought a porch and I say,
0:46:14 > 0:46:17"My porch is better than your porch."
0:46:17 > 0:46:20I've got a dishwasher, so I don't have to do any washing up.
0:46:21 > 0:46:24Well, it sounds like a clean sweep for Ian.
0:46:24 > 0:46:28He did plan to take six months to renovate the property,
0:46:28 > 0:46:31but the goalposts shifted and the extra work here
0:46:31 > 0:46:32accounts for the delay.
0:46:32 > 0:46:34But what about his £20,000 budget?
0:46:36 > 0:46:40I would say I've absolutely lost all sight of that.
0:46:40 > 0:46:45The main reason was I paid 11,000 for the extra piece of land
0:46:45 > 0:46:49and I finished it off to a higher standard.
0:46:49 > 0:46:55So, the real budget is about 40 grand more than what I anticipated,
0:46:55 > 0:46:58but I'm still happy. I'm OK.
0:46:58 > 0:47:02Ian's budget of around £60,000
0:47:02 > 0:47:07takes his total outlay here - including £84,000 purchase price -
0:47:07 > 0:47:10to around £144,000.
0:47:10 > 0:47:12So, has this been a canny investment?
0:47:14 > 0:47:18We invited along two local property experts to hear their thoughts
0:47:18 > 0:47:20on the bungalow.
0:47:20 > 0:47:22He has done a fantastic job in refurbishing.
0:47:22 > 0:47:26I think the key to it was all in the purchase of the rear garden
0:47:26 > 0:47:29to give itself extra scope to go backwards as well as forwards.
0:47:29 > 0:47:32I really like the size and layout of the property.
0:47:32 > 0:47:34There's a good kitchen with working space in there.
0:47:34 > 0:47:39The bedrooms are decent sizes. And also the bathroom is quite big.
0:47:41 > 0:47:43Ian does plan to live in the bungalow,
0:47:43 > 0:47:47but if he were to think about letting it out, the experts
0:47:47 > 0:47:52suggest a rental of between £575 and £595 per month.
0:47:52 > 0:47:56That's a yield of just under 5%.
0:47:56 > 0:47:57But what about the resale value,
0:47:57 > 0:48:03bearing in mind Ian's total spend of £144,000?
0:48:03 > 0:48:07I would put it on the market at £185,000,
0:48:07 > 0:48:12hoping to get in the region of £175,000 to £180,000.
0:48:12 > 0:48:15In the current climate, I would suggest placing the property
0:48:15 > 0:48:19on the open market for a price in the region of £190,000.
0:48:21 > 0:48:24That has got to bring a smile to his face.
0:48:24 > 0:48:26If Ian sold the bungalow,
0:48:26 > 0:48:29he could be looking at a potential profit of between £31,000
0:48:29 > 0:48:34and £46,000 before the usual fees and expenses.
0:48:34 > 0:48:38Does that change the way he feels about the project?
0:48:38 > 0:48:40I am very happy with the property.
0:48:40 > 0:48:43I am very happy with the way the works turned out.
0:48:43 > 0:48:46I plan to, hopefully, live here a long time.
0:48:50 > 0:48:54It is now back to the valleys of South Wales
0:48:54 > 0:48:57and the former coal mining village of Penrhiwceiber,
0:48:57 > 0:49:00where earlier we saw this three-story three-bed terraced house
0:49:00 > 0:49:04bought for 29,000 by Adele and Alex.
0:49:04 > 0:49:08Adele is a junior doctor while Alex is a project manager.
0:49:08 > 0:49:10They seem to have the right credentials
0:49:10 > 0:49:12to cure the property of its problems.
0:49:12 > 0:49:14Or so you'd think.
0:49:14 > 0:49:16What is it like working with Alex?
0:49:16 > 0:49:20Is he a great...? Is he a good hands-on guy?
0:49:20 > 0:49:21No. I'm terrible.
0:49:21 > 0:49:23I'm so much better at work,
0:49:23 > 0:49:27but when it comes to getting your hands dirty, she is so much better.
0:49:27 > 0:49:29She did all the tiling, built walls,
0:49:29 > 0:49:32bossing all the electrical people about.
0:49:32 > 0:49:34I just let her do it. And she enjoys it.
0:49:34 > 0:49:36I'll get my hands dirty when she tells me to do it.
0:49:36 > 0:49:40With the experience of renovating their own house, Dr Adele
0:49:40 > 0:49:43and Alex plan to do this one themselves.
0:49:43 > 0:49:47But with a tight budget of 7,000 to 8,000 and a mere two to three month
0:49:47 > 0:49:50turnaround, it will be interesting to see
0:49:50 > 0:49:53if they can get this particular patient back on its feet.
0:49:54 > 0:49:57Five months later, we returned. From the outside,
0:49:57 > 0:50:00the house doesn't look in the pink of condition,
0:50:00 > 0:50:03but actually it's a lot healthier with the lintels painted
0:50:03 > 0:50:04and a new front door.
0:50:05 > 0:50:09Inside, and the two tired reception rooms have been transformed,
0:50:09 > 0:50:14with re-plastering and redecoration, into much fresher spaces.
0:50:15 > 0:50:17Remember, the house is three-story,
0:50:17 > 0:50:22with the kitchen downstairs. And what a great change here.
0:50:27 > 0:50:31We'll leave it to Adele to explain the turnaround of this room.
0:50:31 > 0:50:34When we bought it, the kitchen was all damp.
0:50:34 > 0:50:37We had to take everything off, strip it completely back.
0:50:37 > 0:50:40We had everything done, proofed, all the floor damp proofed.
0:50:40 > 0:50:43We rendered the whole kitchen, boarded it out
0:50:43 > 0:50:44and plastered everywhere.
0:50:44 > 0:50:47I really wanted an island, so we got that put in.
0:50:47 > 0:50:51Put the units with these two recessed around the chimney breast.
0:50:51 > 0:50:55And a new electric hob, an extractor fan, but we also left
0:50:55 > 0:50:59a gas point there as well in case anyone wanted a gas hob instead.
0:50:59 > 0:51:01I'm really happy with the tap as well.
0:51:01 > 0:51:05Nice, big, modern, pull-out, spray tap. I really like that.
0:51:05 > 0:51:08Yes, the kitchen is looking good.
0:51:08 > 0:51:11And tucked away on the side, the old bathroom has been re-plastered
0:51:11 > 0:51:14and replaced with a completely new suite and tiles.
0:51:16 > 0:51:21Meanwhile, the extension has been refurbished with a new sink unit.
0:51:21 > 0:51:24On a day like today, it must rank as one of the best views
0:51:24 > 0:51:26from a utility room we've ever seen.
0:51:26 > 0:51:30And it's a view that can also be appreciated from the newly
0:51:30 > 0:51:32re-plastered and redecorated rear bedroom.
0:51:34 > 0:51:37The two front bedrooms have been refurbished in the same style.
0:51:37 > 0:51:40You may have noticed that I've mentioned the re-plastering
0:51:40 > 0:51:43a lot because, with no previous experience,
0:51:43 > 0:51:45the couple took on this job themselves.
0:51:47 > 0:51:49I started off with a nice, big bucket
0:51:49 > 0:51:51and then I had a mixing stick,
0:51:51 > 0:51:54I didn't even have the proper mixer for the plaster.
0:51:54 > 0:51:55I had nice, big stick.
0:51:55 > 0:51:59And just basically learned as we went along, really.
0:51:59 > 0:52:01The start-off wasn't the best, was it?
0:52:01 > 0:52:03We progressed in doing the whole house.
0:52:03 > 0:52:05I got shouted out a lot cos I was so bad at the start,
0:52:05 > 0:52:08but I eventually got there with Adele's training.
0:52:08 > 0:52:11To push the renovations through,
0:52:11 > 0:52:14it was vital to have clearly defined roles.
0:52:14 > 0:52:16- I'm the boss. - She's the boss. I listen.
0:52:16 > 0:52:20I moaned like a girl half the time saying, "I'm not happy," she shouts
0:52:20 > 0:52:23at me, I go off in a mood, come back and we are friends straight away.
0:52:23 > 0:52:25It is quite a good working relationship.
0:52:25 > 0:52:28I'd rather her be the boss cos I'm terrible at leading sometimes.
0:52:28 > 0:52:31Considering I'm a project manager at work.
0:52:33 > 0:52:35# She's the boss, yeah She's the boss... #
0:52:36 > 0:52:40Don't be too hard on yourself, Alex. After all,
0:52:40 > 0:52:42you did supply the muscle to clean up the plot out back,
0:52:42 > 0:52:45lay a new patio and re-turf the garden.
0:52:45 > 0:52:47Alex also repainted the house
0:52:47 > 0:52:50and damp proofed the cellar. And the result?
0:52:50 > 0:52:54A new home that they plan to sell on.
0:52:54 > 0:52:56But it was a tough job for them.
0:52:56 > 0:53:00I think next time we'd want other people doing things
0:53:00 > 0:53:03when we've got a bit more money, because it took weeks, didn't it?
0:53:03 > 0:53:05It took us three or four weeks to get everything done.
0:53:05 > 0:53:08Because it was just the two of us doing the whole house.
0:53:08 > 0:53:09And because we had full-time jobs,
0:53:09 > 0:53:12we have to come on weekends or maybe in the evenings.
0:53:12 > 0:53:13And it took a long time to do.
0:53:13 > 0:53:17The couple live a 25-minute drive away in Cardiff,
0:53:17 > 0:53:20so their hours on the project were limited.
0:53:20 > 0:53:23That did push their original two to three month timescale
0:53:23 > 0:53:25up to five months.
0:53:25 > 0:53:29By doing most of the work themselves, their predicted 7,000
0:53:29 > 0:53:35to £8,000 budget has been pushed only just over the nine grand mark.
0:53:35 > 0:53:38Along with their £29,000 purchase price,
0:53:38 > 0:53:43their total outlay is just over 38,000.
0:53:43 > 0:53:46So, it may have proved tough going,
0:53:46 > 0:53:48but the results have given them lots to be pleased with.
0:53:48 > 0:53:53I think we've done an amazing job, really, in the amount of time.
0:53:53 > 0:53:54We would have liked to do it quicker,
0:53:54 > 0:53:57but I think what we've done, it all looks new, it looks fresh.
0:53:57 > 0:54:00I'm really happy with what we've done, really proud of Adele
0:54:00 > 0:54:03cos she project managed it, led us through,
0:54:03 > 0:54:05done a lot of the work herself and, you know,
0:54:05 > 0:54:08some days I went off and played football and she stayed here
0:54:08 > 0:54:11and got on with it. It's a really good house, it's amazing.
0:54:12 > 0:54:14But will the local property market agreed?
0:54:14 > 0:54:16We asked two local estate agents
0:54:16 > 0:54:22for their thoughts on Adele and Alex's 38 grand investment.
0:54:22 > 0:54:25The property has been improved considerably
0:54:25 > 0:54:27since the last time that I visited.
0:54:27 > 0:54:31They've upgraded the kitchen, general upgrades to the house.
0:54:31 > 0:54:34They've not overspent on this property,
0:54:34 > 0:54:37probably aligning it towards the rental market.
0:54:37 > 0:54:40Well, it's a great improvement.
0:54:40 > 0:54:43And I can see they've spent a few quids bringing it
0:54:43 > 0:54:45to a decent standard.
0:54:45 > 0:54:49There is a much improved kitchen,
0:54:49 > 0:54:51a modern bathroom suite,
0:54:51 > 0:54:56painted a nice plain white throughout with the garden reappointed.
0:54:56 > 0:54:59I think they've done the right things to get it
0:54:59 > 0:55:00attractive in the rental market.
0:55:00 > 0:55:04The estate agents reckon the house is right for letting
0:55:04 > 0:55:07so what could the couple expect in rental?
0:55:07 > 0:55:11I would hope to achieve a minimum £375 per calendar month,
0:55:11 > 0:55:14maybe as much as £400 per calendar month.
0:55:14 > 0:55:18I believe you would comfortably achieve £350 per calendar month.
0:55:18 > 0:55:19I'm quite happy with that.
0:55:19 > 0:55:22We haven't really considered renting, to be honest, but it is a good price.
0:55:22 > 0:55:24- Good for the area. - Yeah, good for the area.
0:55:24 > 0:55:26More than I expected for rental, yeah.
0:55:26 > 0:55:28Those two figures could give them
0:55:28 > 0:55:33a very healthy annual yield of between 11% and 12.5%.
0:55:33 > 0:55:38Would a resale make any profit on their £38,000 spend?
0:55:38 > 0:55:42I would put this property on the market at between £45,000
0:55:42 > 0:55:44and £50,000.
0:55:44 > 0:55:47I would put this property on the market for £45,000.
0:55:48 > 0:55:50Those figures would mean a possible pre-tax profit
0:55:50 > 0:55:54of between £7,000 and £12,000.
0:55:54 > 0:55:56I think that is quite a good price.
0:55:56 > 0:55:58- I mean, we've definitely made a profit on it.- Yeah.
0:55:58 > 0:56:02- It's money made, so it's profit, so I would be happy with that.- Yeah.
0:56:02 > 0:56:06Although this property does seem better suited to the rental market,
0:56:06 > 0:56:10Adele and Alex have put it up for sale for 52,000
0:56:10 > 0:56:13to see how that pans out over the next few months.
0:56:13 > 0:56:16Despite the tough renovation,
0:56:16 > 0:56:20it hasn't put them off any future investments.
0:56:20 > 0:56:22Yeah, I would go back to auction. I really enjoyed the process
0:56:22 > 0:56:25and you can get a great deal on a house.
0:56:25 > 0:56:26Although it took a lot of work,
0:56:26 > 0:56:29we're going to make money on it, even in the state it was.
0:56:29 > 0:56:30That's the way to do it.
0:56:30 > 0:56:33I'm happy to go back to auction and do it all over again.
0:56:36 > 0:56:40Well, join Lucy and I next time when we meet more brave auction buyers
0:56:40 > 0:56:43trying to make a killing on property or just find a place to live.
0:56:43 > 0:56:46- Look forward to seeing you then. - BOTH: Goodbye.
0:56:46 > 0:56:49Subtitles by Red Bee Media Ltd