Episode 28 Homes Under the Hammer


Episode 28

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Whether you are buying a home as a house or an investment,

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you will want to make sure that you bought wisely.

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It can be difficult to find,

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but what you're looking for is value for money.

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And one way we think you can find that is buying at auction.

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From rundown flats to super semis to gorgeous sprawling mansions,

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there are all sorts of properties on offer at auction.

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Yes, and these are the properties that had our buyers

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reaching for their chequebooks on today's show.

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In Balham, South London, when I say compact and bijou...

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You cannot be prepared for how small this space is. This is it!

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Whereas, this two-bed bungalow in County Durham

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seems to be getting bigger and bigger.

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It starts out quite small and has had bits added on to it over time.

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And in Mid Glamorgan,

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I find an ex-miner's house in touch with its feminine side.

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Now, I am all for a bit of colour, but is it really pretty in pink?

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All these properties were sold at auction.

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We'll find out who bought them and what they paid for them

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when they went under the hammer.

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It's yours, sir.

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Today I am in Balham, Southwest London,

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and it's time to dig out those flapper dresses and two-tone shoes -

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we are taking a trip back to the 1930s.

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A two-minute walk from Balham Tube Station,

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and I am here to see today's auction lot.

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It's in this eight-story beautiful Art Deco block.

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And I can't wait to have a look at this one.

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There is so much to tell you about.

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So, get comfy because I'm going to investigate.

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Investigate is the right word

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because the building, with its Art Deco charm,

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was actually used as the location for an episode

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of Agatha Christie's Poirot.

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I wonder if today's lot will exercise my little grey cells.

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This impressive block was built in 1937

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and it was described at the time as a magnificent up-to-date building,

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providing distinctive accommodation.

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Central heating, constant hot water, water softener

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and a radio with a choice of two programmes were basic features.

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Now, the water softener and the radio don't come with the property

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any more, I'm afraid, but the central heating and the hot water does.

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So, how much for a studio flat in this block?

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200,000? 150,000 perhaps?

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No, the guide was set at a very reasonable £70,000.

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Great value for this part of the capital.

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Mm. Period charm in a sought-after area of London,

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so how come the price tag is so low?

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Maybe I need the help of that funny little Belgian man.

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Oh, my goodness.

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Wow! The Art Deco features inside are just incredible!

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It is such a beautiful, beautiful building.

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You've got this wonderful sweeping staircase behind me,

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these big pillars.

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There is beautiful, stylised furniture over here.

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This is the concierge service.

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I am so excited.

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I am going to go up and have a good look around the flat.

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It's a great start for sure.

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Up the sweeping staircase and it's not looking quite so grand,

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but fingers crossed for the studio flat itself.

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So, there's a bathroom...

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and...

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This is the main room?

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Yes. This is the main room. Hold on.

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Have I missed something?

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You cannot be prepared for how small this space is. This is it!

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Honestly, I am quite shocked.

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But this studio used to be what they called the guest room.

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It was actually hired by owners of flats for their guests to use

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whilst visiting.

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So they only had a bedroom and a bathroom,

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which is what you've got here.

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No need for a kitchen, obviously.

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This was a later addition.

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So you can see it is a sort of afterthought.

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The layout here, it just does not work.

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An overly large bathroom in there and a teeny tiny,

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little kitchenette, which is - look - not even plugged in.

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This whole space requires a serious rethink.

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I am a bit disappointed internally, I have to say.

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There is barely enough room to swing a kitten here, let alone a cat.

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But I am not giving up on this one just yet.

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Time to think Japanese pod living or railway carriage even.

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First things first,

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shrink the oversized bathroom down to the neatest of shower rooms.

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Squeeze in a seriously compact and bijou kitchenette,

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a fold-down bed perhaps and any other space-saving stuff

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you can think of. And it might just work.

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What does the local estate agent think?

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My personal thoughts on it are

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that it would probably be better as a rental investment

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than someone who is going to be living there full time.

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It would be ideal for somebody who, say, travels a lot,

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or comes up to London for work

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and just need somewhere to stay for the night,

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somewhere safe and secure, which it is here, obviously.

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Someone living there full-time, I'm not sure that it's perfect.

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How could you fit the place out to make most of it?

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On the subject of furniture, I think you haven't much room

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for anything other than what you'll be sleeping on.

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So, look out for a really attractive day bed or sofa bed.

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You'll have the kitchen area there. You don't need a table or anything.

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You could put a television up on the wall.

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And a chair for a guest.

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OK, and what kind of rental income might you be looking at

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for the flat?

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This property would expect to achieve in the region of £650 to £675

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per month.

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And if the purchaser were to do the flat up and sell it on?

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When renovated,

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I would suggest marketing this property in the region

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of £120,000 to £125,000.

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It certainly is a compact studio, to say the least.

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It requires a layout rethink,

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but this building has got bags of charm and I think I love it.

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It's tiny, but is a great one to go for.

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Let's see who agreed with me when it went under the hammer.

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That brings us now to lot 105.

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Second-floor studio flat.

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Who'd like to get me started on this?

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100,000 anywhere?

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How about 80, then? Let's give it a bit of discount.

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80,000, should be cheap enough.

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I wouldn't go too much lower than that.

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Thank you. 75. Let's start with... 75, I've got.

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Thank you. 76.

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77.

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78. 79.

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80,000. 81.

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After a slow start, bidding did get going and the price crept up

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over the £100,000 mark.

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With you.

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103 for the first, 103 for the second,

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103 for the third and final time.

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All done? How much? 104?

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Both together, yeah? 104.

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105.

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106.

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107. No?

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106 for the first, 106 for the second,

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106 for the third and final time.

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All done? Sold, 106. Well bought.

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The man who snapped up this slip of a property for 106,000

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was Girish, who attended the auction with his son, Prasun.

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# All the small things

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# True care truth brings... #

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This was their first ever time at a property auction

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and they bought the flat as a means of propping up Girish's pension.

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I met up with the father-and-son combo in the lobby

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of the building, as the flat was just too small for us all.

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-Girish and Prasun, congratulations.

-Thank you.

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So, it here we are in this amazing building.

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You bought your studio flat.

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-Did you see it before you bid for it on auction day?

-No, we didn't.

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What happened was we saw the document that came out.

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It was 186 pages.

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And I was reading through it

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and I sort of got tired halfway.

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But I read the essential bits.

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It was 150 year lease on it.

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I did a little research on the building

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and it turns out the building has a really nice history.

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So we took the risk with that when we got to auction, I think.

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So, Girish,

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what did you think when you saw this place for the first time?

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Were you excited?

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Oh, yes, of course.

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I never had seen such a big property before.

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That was impressive.

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Very impressing.

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But then I'm sure the fun stopped when you opened your front door.

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I saw the plan beforehand, one side,

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and we... It said kitchenette in the catalogue.

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But we couldn't figure out where it would be.

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So we thought surely it couldn't have been in the studio itself,

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but when we actually went in, there was a big, unconnected kitchen sink

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just built into the wall.

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So initially, were you disappointed?

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We were. We were a little bit scared that we overpaid for the property.

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But we talked to our estate agent and he assured us

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that he has sold properties for more.

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Or very close to what we paid for it.

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So, we were...sort of... That calmed us down a little bit.

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Sounds like Girish and Prasun will have to be economical with space

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and their budget on this one

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if they want to make a decent return on their investment.

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-So what are your plans?

-We have very little space,

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but we'll try to make the most of it

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and work to a really high standard.

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There needs to be a kitchenette

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and the bathroom is unusually big.

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So our plan is to take half the bathroom and turn it into a kitchen.

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Instead of the bath that is currently there,

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-we are going to put a shower tray in there.

-What is your budget?

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-£5,000.

-You'll be knocking a few walls down, aren't you?

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Or just creating a bit more space.

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You're going to probably need permission to do something like that.

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Yeah. We have talked to the office.

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They have an in-house office where we have access to the freeholder

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quite easily.

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So we are going to submit the drawings.

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We should get the drawings back and, as soon as we do,

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we'll start the work and start knocking the walls down.

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£5,000. Girish, what is the timescale?

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About four weeks.

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Are you going to be letting it or selling it on or don't know?

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We don't know yet.

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We'll decide after we've done it up, made it look nice and livable.

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Well, it will be great to see what they do here.

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But I can't help thinking Girish and Prasun would have

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passed this over if they had actually looked around the studio

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before buying.

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Do you now regret not doing as much research as you should have?

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Not regretting, but I would say a different way, that

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we got a first time buy, first time auction entry.

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And now we have learned.

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Guys, good luck with everything.

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I am really excited for you.

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-Girish.

-Thank you very much.

-Thank you.

-Thank you.

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Timescale, four weeks. Cash, £5,000. Really?

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OK, so it's not huge inside,

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but there is quite a bit of work to do before it is ready.

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But what will they do with it once it's complete?

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Rent it out? Sell it on?

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Will the new owners think it is a little bit small to live in?

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Let's wait and see what happens. You can find out later in the programme.

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This is the little market town of Crook in County Durham,

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about ten miles from the city of Durham itself.

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It is a pretty little spot surrounded by lovely countryside

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and, you know, just what you need, really.

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It is just what you may need.

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Nestled amongst this beautiful countryside, it has got a good mix

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of new and older properties. It is home to Crook Town Football Club.

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There are some great specialist shops and it lives up to its claim

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of being a market town by having two markets a week.

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# I found that warm embrace

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# At the marketplace... #

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Well, not far from Crook Town Centre is the property I'm here to see.

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Built around the 1800s, it is a two-bed bungalow

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at a guide price of 85,000 quid.

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The first thing I notice about it, nice big front garden.

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Let's hope it has got a bit of character inside.

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The garden at the side shows the bungalow's a bit of an odd shape

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and there is no garden at the back, so what you see is what you get.

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So what have we got? Nice high ceilings.

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I didn't quite expect that.

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It has a good feeling of space,

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but straight from outside into your living room.

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Obviously, cold air coming in.

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Try and maybe put a porch on that to sort that out perhaps.

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But main living room here and I guess

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that's your bedroom, or one of them, there.

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And through to the rear of the property.

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I say, because it's kind of a bit strange.

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There is the loo there, the second bedroom there and then through

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this little corridor into what is actually a decent-sized kitchen.

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Although, I noticed from the outside,

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this has got a flat roof, which isn't ideal.

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So, obviously an extension.

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The whole feeling of this property is something that has started off

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quite small and has had bits added onto it over time.

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I mean, look, there's little sort of... What's that?

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A little storage area there, or a larder.

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It really needs you to...

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I guess, in an ideal world, look at all the internals, just leave

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the exterior and really sort it out into a more practical design inside.

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# A design for life... #

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If the buyer did decide to leave as is,

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then all the rooms are a decent size,

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they just need some modernisation.

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But I think the layout could be so much better.

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The building definitely has development potential.

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There may be something that could be done with that garage to create

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even more floor space.

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With a guide price of £85,000,

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it could possibly be a great little investment.

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However, it was sold at auction under what is called Option Two.

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What does that mean?

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Well, we invited along a local property expert to explain.

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This particular property is being offered

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under the Option Two of the auction,

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which means that the buyer will put down a £3,000 deposit

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on the property,

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have 28 days to exchange a contract and a further 14 days to completion.

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This means that the buyer would have to do

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their own homework on the property prior to making their bids.

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In a more conventional auction,

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i.e. under Option One, buyers would put down a 10% deposit and exchange

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on the fall of the gavel.

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Option Two is aimed at enticing new buyers into the market.

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However, legal packs aren't usually available until after the auction.

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Checking the property out thoroughly is

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the prospective purchaser's responsibility

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If you are contemplating buying under Option Two,

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it is worth checking with the auction house

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that you understand what this entails.

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With that aside, first impressions?

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The property has been owned for a long time by the same family

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and now requires internal updating - refurbishments through the kitchen

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and bathroom and such.

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What could be done to improve this property?

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The property itself is on a limited plot. There is no rear garden.

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So it would need to be either a side, front or upward extension.

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Probably make it into a dorm room bungalow,

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removing the garage, in my opinion.

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Given these possibilities,

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how much can an investor expect to achieve if it was rented out?

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Once the property is renovated, I imagine you'd be able to achieve

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somewhere in the region of £500 to £550 per calendar month.

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And if the renovations were realised,

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how much could it fetch if sold on?

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If you put the property on the market

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as a newly converted three-bedroom property,

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then I'd suggest a recommended asking price in the region

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of £125,000 to £130,000.

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Well, it is clearly in need of some major refurbishment

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and certainly it needs some work on the layout, for sure.

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But I think, spend that money on this place

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and you've got yourself a decent little property.

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Let's see who fancied it when it went under the hammer.

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We are going to move now to lot number 27.

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It is an individual period detached bungalow,

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a few minutes' walk from the centre of Crook Town Centre.

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I need 80 to start. 80,000 bid.

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We have got off the mark with £80,000.

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Do I have anything further than 80,000?

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I've got the one bid of £80,000. 81,000.

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Back over to you for 82.

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It's at 81,000, sitting down.

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Any further in the room? It's £81,000.

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82 bid for the gentleman standing. 83.

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84. 85?

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I've got £84,000.

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Anything further? You are both out at 84. I'll take a half.

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At £84,000, we're going to sell.

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Selling once at 84.

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I will take 500. The second at 84.

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Sold for £84,000 to the gentlemen standing.

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It was a clearly very delighted Ian who got his hands

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on this great little bungalow for £84,000,

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£1,000 less than the guide price.

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Ian lives just around the corner

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and is a dental technician with a small portfolio of buy-to-lets.

0:18:420:18:46

But this bungalow will be a new home for him

0:18:460:18:49

and his 13-year-old son, James.

0:18:490:18:52

I caught up with Ian to hear about his plans.

0:18:520:18:55

-Ian, lovely to meet you.

-Pleased to meet you.

-Congratulations.

0:18:550:18:59

-Thank you.

-You look quite excited to win it, actually.

0:18:590:19:02

Well, I didn't expect to get it as cheap as I did.

0:19:020:19:04

I don't know what your valuations are, but I expected it to go higher.

0:19:040:19:07

-Half the time I didn't expect to get my hand up.

-Really?

-Yeah.

0:19:070:19:11

You had a bit of a whoop in the air, didn't you?

0:19:110:19:13

And you bought it under Option Two, didn't you?

0:19:130:19:16

Which is quite a special thing for this area in lots of ways.

0:19:160:19:19

I can see the benefits of it.

0:19:190:19:21

What do you understand are its benefits and how is it for you?

0:19:210:19:24

It gives you more time to pay and complain.

0:19:240:19:26

But to be honest, I don't think the solicitors have a lot of work on,

0:19:260:19:29

so we have completed in a similar time to

0:19:290:19:31

-what it would have been if it were the other option anyway.

-Right.

0:19:310:19:34

But you bought it without the access to a legal pack,

0:19:340:19:37

so you didn't know some of the specifics of that.

0:19:370:19:42

Did anything come to light?

0:19:420:19:44

Not really. I think you take a chance, don't you?

0:19:440:19:47

You pay your money, take a chance.

0:19:470:19:49

Ian was lucky in this instance not to have any nasty surprises

0:19:490:19:53

waiting for him after the auction,

0:19:530:19:55

although he would've had 28 days to retract his offer

0:19:550:19:59

if there was anything he was unhappy with.

0:19:590:20:02

That would have lost him his £3,000 deposit, though.

0:20:020:20:05

So do remember that if you are thinking of purchasing an Option Two

0:20:050:20:09

auction lot, that you really must do your homework prior to the auction.

0:20:090:20:13

But then, of course, that always goes for buying at auction,

0:20:130:20:17

full stop.

0:20:170:20:18

Tell me a bit more about you, what do you do?

0:20:180:20:20

I'm a dental technician, I've done that for 30 years.

0:20:200:20:23

What does that mean you actually do?

0:20:230:20:25

-Basically, I mend and repair and make false teeth.

-Oh, right, OK.

0:20:250:20:30

-Great.

-There is a local dentist here.

-OK, so locally?

-Yeah.

0:20:300:20:33

-Fantastic. Do many people have false teeth these days?

-Less and less.

0:20:330:20:37

That is why I've diversified into property.

0:20:370:20:40

Right. Less dentures and more into rebuilding houses

0:20:400:20:44

-than people's teeth.

-Yeah, exactly, yeah.

0:20:440:20:46

So, tell me what you'll do to sort it out.

0:20:460:20:48

Well, I have a few different plans,

0:20:480:20:50

but I think, with planning permission,

0:20:500:20:53

if I get planning permission,

0:20:530:20:56

I might take that bedroom out there and build a lounge in that area

0:20:560:21:00

-and then make the garage, this and this into bedrooms.

-Oh, wow!

0:21:000:21:03

I thought about moving the bathroom into the corner of the kitchen

0:21:030:21:07

and using this other area as a kitchen.

0:21:070:21:09

It doesn't sound like there's going to be many rooms left

0:21:090:21:12

as they are at the moment.

0:21:120:21:14

It depends on planning permission.

0:21:140:21:16

If I get problems, I might have to leave it the way it is, but

0:21:160:21:20

the main thing is get a dishwasher in cos I don't like washing up.

0:21:200:21:23

-HE LAUGHS

-All that to get...

0:21:230:21:26

There's no dishwasher, that's a big...

0:21:260:21:28

Elaborate plans to get a dishwasher.

0:21:280:21:33

Why didn't you just buy a bigger house or a house that was

0:21:330:21:36

a different design rather than buy this and have to do all that to it?

0:21:360:21:39

Well, I think I get a better quality thing for less money.

0:21:390:21:42

He'd like to get the work done for less than £20,000.

0:21:420:21:46

Apart from getting tradespeople in for the important jobs,

0:21:460:21:50

he'll do most of it himself.

0:21:500:21:51

But a major reconfiguration like this isn't for the faint hearted.

0:21:510:21:56

So, what kind of experience do you have in property?

0:21:560:21:58

Well, I bought one in auction...

0:21:580:22:01

What? In 2000.

0:22:010:22:03

I never really bought anything since then because the prices went up.

0:22:030:22:06

But... Oh, and I bought a building that I made into a pub

0:22:060:22:10

three years ago, which is now a bank.

0:22:100:22:13

-You kind of almost forgot that. Isn't that quite significant?

-Yeah.

0:22:130:22:16

Well, actually, it's more business then residential, isn't it?

0:22:160:22:21

-So, you own a pub?

-Yeah.

-Oh, great.

0:22:210:22:24

Well, I put a manager in, but I work a few shifts.

0:22:240:22:26

I've learned the ropes a little bit myself.

0:22:260:22:29

Right. You do diversify, then.

0:22:290:22:31

Making false teeth to pouring pints to building properties.

0:22:310:22:34

That's right, yeah.

0:22:340:22:35

He is certainly keeping a few fingers in a few pies.

0:22:350:22:39

But this property isn't a business venture,

0:22:390:22:42

it is going to be his new home.

0:22:420:22:43

So how long will it take before he can move in?

0:22:430:22:46

-What about a timescale for doing it?

-Well,

0:22:460:22:50

it depends how fast I can get through the planning, I think.

0:22:500:22:52

If I can get through the planning, get the planning all done,

0:22:520:22:55

I can start next week stripping the paper off.

0:22:550:22:57

Have a look, see if it needs any damp work doing, things like that.

0:22:570:23:01

-Well, congratulations anyway. Good luck.

-Thanks.

0:23:010:23:04

I hope it turns out to be

0:23:040:23:05

-a successful project for you.

-Thanks a lot.

0:23:050:23:08

Well, dental technician Ian seems to have the palate to take

0:23:100:23:13

this project on, but will he find more decay than he expects?

0:23:130:23:19

Will it be a bridge too far? Or will it we the crown

0:23:190:23:23

in his property portfolio?

0:23:230:23:25

Ahem.

0:23:250:23:27

You can find out later in the show.

0:23:270:23:29

Coming up, in Mid Glamorgan, Wales,

0:23:300:23:32

three floors mean three times the problems.

0:23:320:23:35

The list could go on. What is down here?

0:23:350:23:37

Uh-oh!

0:23:370:23:39

In Crook, County Durham,

0:23:400:23:41

it looks as though Ian has got all of his renovation priorities right.

0:23:410:23:46

I've got a dishwasher, so I don't have to do any washing up.

0:23:460:23:50

But first, back in Balham,

0:23:500:23:53

were any lessons learned from this first auction purchase?

0:23:530:23:56

I suppose we could, next time, go and see the property.

0:23:560:24:00

Back now to Balham, Southwest London,

0:24:040:24:06

and this Art Deco block where Girish and his son, Prasun,

0:24:060:24:10

bought this teeny-weeny studio flat at auction for 106,000.

0:24:100:24:16

While the building has been used as a location for Agatha Christie's

0:24:160:24:19

Poirot, there was no great mystery about what needed doing here.

0:24:190:24:23

We are going to take half the bathroom

0:24:230:24:26

and turn it into a kitchen.

0:24:260:24:27

Instead of the bath that is currently there,

0:24:270:24:29

we're going to put a shower tray in there, which is probably

0:24:290:24:32

what a young professional will need.

0:24:320:24:34

With a £5,000 budget and a four-week timescale,

0:24:350:24:38

there wasn't much wiggle room on this one.

0:24:380:24:41

Three and a half months after our first visit,

0:24:410:24:45

we're back to see what has become of the studio flat.

0:24:450:24:48

# Tiny bubbles make me warm all over

0:24:480:24:54

# With the feeling that I'm gonna love you till the end of time... #

0:24:540:25:01

Well, with Girish overseas, his son, Prasun,

0:25:100:25:14

has been overseeing the work on the flat.

0:25:140:25:17

If you remember, there used to be a door here.

0:25:180:25:21

We took the door and the frame out in order to give it a feel of space

0:25:210:25:24

and, you know, sort of freedom, you know, not so constricted.

0:25:240:25:28

Secondly, there was another wall around this way,

0:25:280:25:31

with a door in there, and we removed the whole wall.

0:25:310:25:34

The bath which used to be behind the wall,

0:25:340:25:37

that got removed, which gave us all this space free.

0:25:370:25:41

Then we put a pocket door to divide the kitchen,

0:25:410:25:43

which we made from scratch. There was no kitchen here before.

0:25:430:25:46

So, you know, it's really made a big difference

0:25:460:25:50

in doing what we've done.

0:25:500:25:51

But below the Art Deco-inspired surface,

0:25:540:25:57

there has been quite a bit of remedial work done here, too.

0:25:570:26:00

The plumbing needed a complete overhaul.

0:26:030:26:06

All new electrics have been put in. Complete new plaster and paint.

0:26:060:26:10

So that's...

0:26:100:26:12

It had to be done and it was done.

0:26:120:26:14

Then there was the sourcing of the neatest of stuff

0:26:140:26:18

to put into the flat.

0:26:180:26:20

The compact kitchenette is the model of minimalist ingenuity.

0:26:200:26:23

And although the sliding pocket door into the bathroom

0:26:230:26:26

cost £600, it does its job pretty well.

0:26:260:26:30

Let's see that smooth sliding action again.

0:26:300:26:33

So, is Prasun happy with the end product?

0:26:330:26:36

I am very, very happy with it.

0:26:370:26:39

My dad, I sent him the pictures.

0:26:390:26:42

He is abroad at the moment. I sent him the pictures and he was ecstatic.

0:26:420:26:46

Obviously, we have heard from my estate agent. He loved it as well.

0:26:460:26:50

So we have had good feedback already.

0:26:500:26:52

We have had a lot of interest in it, so what more can I ask?

0:26:520:26:56

Parsun's team was delayed in starting the work,

0:26:580:27:01

but they did manage to get everything done

0:27:010:27:03

within the four-week timescale.

0:27:030:27:05

How about the budget?

0:27:050:27:07

We were hoping to spend five grand.

0:27:080:27:11

Unfortunately, due to some delays and the new electrics

0:27:110:27:17

and the specialist equipment that we needed, we went over budget.

0:27:170:27:22

But again, we are quite happy with that. It was £7,500.

0:27:220:27:26

We were more than happy to spend that.

0:27:260:27:28

£7,500 on top of the purchase price

0:27:280:27:33

of 106,000, brings the total outlay here to £113,500.

0:27:330:27:39

The day before filming,

0:27:390:27:40

Prasun put the flat up for sale and for rent to test the water.

0:27:400:27:45

We asked along

0:27:450:27:46

two local estate agents to get there take on the place.

0:27:460:27:49

Very contemporary feel. It has been modernized to a good standard.

0:27:490:27:52

We would have potentially either a lot of first-time buyers

0:27:520:27:56

or investment buyers looking to increase

0:27:560:27:58

their portfolio of properties.

0:27:580:28:00

So, yeah, it has been done very well.

0:28:000:28:02

It looks really nice and clean and bright.

0:28:020:28:05

But I am a little bit disappointed. I think I had hoped to see something

0:28:050:28:08

a bit more inventive done with the space.

0:28:080:28:10

Mixed reactions there. But can they agree on a sale price?

0:28:110:28:15

I would recommend marketing this at 125,000, 130,000,

0:28:170:28:22

with a view to getting in excess of 120,000.

0:28:220:28:25

If I had to put the property onto the open market today,

0:28:250:28:27

I would probably anticipate putting it on in the region of 125,000

0:28:270:28:30

to £130,000.

0:28:300:28:31

I think that is quite low.

0:28:310:28:33

We have already put it on the market speculatively for over 135, 140.

0:28:330:28:40

And we're already getting some sort of interest on it.

0:28:400:28:43

And, again, it's been less than 24 hours.

0:28:430:28:46

So, we're happy with the purchase.

0:28:460:28:48

Even at those prices, I think we have done quite well.

0:28:480:28:51

So, I am quite happy anyway.

0:28:510:28:53

If you're happy, we're happy, Prasun.

0:28:530:28:57

The estate agents' valuations mean a profit, before fees

0:28:570:29:00

and expenses, of between £6,500 and £16,500.

0:29:000:29:05

What about rental figures?

0:29:050:29:06

In terms of rental income, per calendar month, I'd be looking

0:29:060:29:11

to achieve a rent of somewhere in the region of about £600.

0:29:110:29:15

On the rental market, I would expect this to achieve

0:29:150:29:18

in the region of £600 per calendar month.

0:29:180:29:21

I think they are quite a bit low.

0:29:210:29:24

We've gone with an estate agent that is getting us

0:29:240:29:26

viewings already for over 750, so, you know,

0:29:260:29:30

we are quite happy with the estate agent we've gone with.

0:29:300:29:34

In fact, since filming, they rented the flat out for £780 a month.

0:29:360:29:43

But before they move on to the next auction property,

0:29:450:29:48

what have they learned from their first?

0:29:480:29:50

I suppose we could next time go and see the property.

0:29:520:29:55

But, you know, we haven't regretted anything we've done so far,

0:29:550:30:00

so if we had to do it all over again, we would.

0:30:000:30:03

I have travelled to Wales today and the auction property I'm here

0:30:060:30:10

to see is in a small village, and it is called Penrhiwceiber.

0:30:100:30:15

Now, the village has all the amenities you would expect

0:30:150:30:18

plus it is well-connected.

0:30:180:30:19

It's only 18 miles from Cardiff and there is a train station,

0:30:190:30:24

so we are definitely in commuter territory.

0:30:240:30:27

Oh, and one more thing, the average three-bedroom property

0:30:270:30:31

in the village costs just over £70,000.

0:30:310:30:36

Perfect!

0:30:350:30:36

You're never far from the mining heritage of this part of Wales.

0:30:390:30:44

Today's property is a little slice of that history, too.

0:30:440:30:48

These Victorian terraces were built for miners' families 150 years ago

0:30:480:30:53

from locally quarried stone and grey slate.

0:30:530:30:57

And one of them is today's auction property.

0:30:570:31:00

It is this one here.

0:31:000:31:01

Now, I am all for a bit of colour, but is it really pretty in pink?

0:31:010:31:05

I think I'd change that. It won't suit everybody's tastes.

0:31:050:31:08

But the guide price will probably appeal to everybody.

0:31:080:31:12

It was set at just £27,000.

0:31:120:31:15

That guide price is seriously low,

0:31:180:31:21

low enough to set an alarm bell ringing, I'm afraid.

0:31:210:31:24

Just what is lurking behind that pretty pink exterior?

0:31:240:31:28

And it is how I imagined on the inside.

0:31:310:31:34

It needs a lot of work.

0:31:340:31:36

Terribly dated wallpaper,

0:31:360:31:38

but you have got a really good-sized reception room.

0:31:380:31:41

In fact, it is all quite spacious,

0:31:410:31:43

which is making me think this could be a potentially good buy.

0:31:430:31:47

Look at this. A second reception room.

0:31:470:31:49

Again, lots of light coming in here.

0:31:490:31:51

It does need some work.

0:31:510:31:53

You need your carpets, the walls need doing, the list could go on.

0:31:530:31:56

What's down here?

0:31:560:31:58

Uh-oh!

0:31:580:31:59

Down the stairs

0:31:590:32:02

and it looks like we've run into the start of a new mineshaft.

0:32:020:32:05

# Working in a coal mine Going down, down, down

0:32:050:32:09

# Working in a coal mine Oops! About to slip down... #

0:32:090:32:13

In all seriousness, this was the old coal store

0:32:130:32:16

and needs a bit of work to make it a dry, usable space.

0:32:160:32:20

And there's more on this lower ground level.

0:32:200:32:22

There is also the kitchen, which is a decent size,

0:32:220:32:25

the only bathroom in the property and a rather rickety lean-to porch.

0:32:250:32:30

It's a decent space, but it's all worryingly damp down here.

0:32:310:32:35

Pop outside to the steeply sloping garden, look back

0:32:380:32:41

at the property's three levels and you can see it is going to be

0:32:410:32:44

quite a trek from the bedrooms at the top floor down to the bathroom.

0:32:440:32:48

So you may want to think about moving the bathroom upstairs.

0:32:480:32:51

That's going to cost.

0:32:510:32:53

# Back to nature... #

0:32:530:32:56

Up on the first floor, there are three bedrooms.

0:32:560:32:59

They're not huge and you might have to sacrifice one

0:32:590:33:01

to move the bathroom.

0:33:010:33:03

But for me, there is a more pressing concern.

0:33:030:33:06

Mm, there are signs of damp everywhere in this house!

0:33:070:33:11

It's not ideal. But it doesn't have to be a deal breaker either.

0:33:110:33:15

In many cases, damp is the result of poor maintenance.

0:33:150:33:18

And that's usually quite easy to rectify.

0:33:180:33:21

If there is a damp patch visible inside the home,

0:33:210:33:24

the cause can usually be identified from an issue on the exterior.

0:33:240:33:28

Time to investigate further.

0:33:280:33:30

# There's just one thing that I just can't stand

0:33:300:33:35

# I can't stand the rain I can't stand the rain... #

0:33:350:33:39

It looks like someone has tried to use a bit of lead to patch up

0:33:390:33:42

some broken tiles, and it looks like a rather botched job.

0:33:420:33:47

I would say fix or replace that

0:33:480:33:51

and you'll be some way to solving the problem on the inside.

0:33:510:33:55

The mid-terrace went to auction with a guide price of 27,000.

0:33:560:34:00

We asked a local estate agent for his thoughts.

0:34:000:34:03

What would he do with the property?

0:34:030:34:05

If I was to keep this as a home, I would definitely consider

0:34:070:34:10

transforming this into a two-bedroom house by moving the bathroom.

0:34:100:34:14

If I was to keep it as a rental property,

0:34:140:34:16

I would leave it as a three-bed to maximise the rental return.

0:34:160:34:19

If the purchaser leaves the layout as it is,

0:34:200:34:23

what kind of rental income might the mid-terrace achieve?

0:34:230:34:27

If it was left as a three-bed property, I would estimate

0:34:270:34:30

a rental value of £375 per calendar month.

0:34:300:34:34

And again, if they left the bathroom where it is, did the property up

0:34:350:34:39

and sold it on?

0:34:390:34:40

If the property was fully refurbished,

0:34:410:34:44

I would as estimate a value of between £50,000 and £55,000.

0:34:440:34:48

The damp issues and the amount of work required here

0:34:480:34:51

will no doubt put people off,

0:34:510:34:53

and there is the added headache of the lower ground floor bathroom.

0:34:530:34:57

Now, this property, I think,

0:34:570:34:59

is crying out for a second loo facility up there.

0:34:590:35:02

Renovating this is not going to be quick

0:35:020:35:05

and it certainly won't be cheap.

0:35:050:35:07

But somebody wanted it.

0:35:070:35:08

Let's find out who that was as we go to auction.

0:35:080:35:11

All right, we go on to lot number 19 now then, ladies and gentlemen,

0:35:110:35:17

which is the three-bedroom mid-terraced house.

0:35:170:35:22

Who has 30,000 to start me?

0:35:220:35:24

Can I see 30 for it?

0:35:240:35:26

25 then, let's get on. Five is bid, thank you. At 25,000,

0:35:260:35:30

this is no money for it. At 25,000. And six?

0:35:300:35:33

At 25,000, all done then?

0:35:330:35:37

Is it a bid on six? Thank you.

0:35:370:35:39

At 26, bid. At 26,000.

0:35:390:35:42

Seven now? At 27, thank you. At £27,000. At 27.

0:35:420:35:48

Half, is it now? At 27,000, half. Fresh bidder at 27,500.

0:35:480:35:53

Eight if you like. £27,500.

0:35:530:35:57

Eight if you like. Is it eight? Thank you. At 28.

0:35:570:36:00

At 28. Half bid. At 28.5, I took it in the back.

0:36:000:36:04

At 28.5. Can I see nine quickly?

0:36:040:36:07

Still... 29, thank you.

0:36:070:36:09

At 29,000, you are out on my right. At 29,000.

0:36:090:36:13

There is the bid, make no mistake, I'm selling all the time.

0:36:130:36:17

Half if you like.

0:36:170:36:19

At £29,000... It's yours, sir. Thank you very much.

0:36:190:36:24

That successful bid of £29,000 was placed by Cardiff-based Alex,

0:36:260:36:31

a project manager, and his partner Adele, who is a doctor.

0:36:310:36:34

I met up with a couple at the property to find out

0:36:370:36:40

why they went for this particular mid-terrace.

0:36:400:36:44

# We could've had it all

0:36:440:36:49

# Rolling in the deep... #

0:36:490:36:52

Guys, congratulations.

0:36:540:36:55

-You must be so pleased you won this on auction day.

-Yeah.

0:36:550:36:59

What is the story behind you buying this? Are you property developers?

0:36:590:37:02

We're starting out as property developers.

0:37:020:37:04

We did up our own house last year and were quite successful

0:37:040:37:07

and had it valued. So we decided to come to auction.

0:37:070:37:10

We got this property in the end.

0:37:100:37:12

So, Alex, when the hammer went down, and you knew you'd won it,

0:37:120:37:15

what happened?

0:37:150:37:17

We went to the auction and we didn't think

0:37:170:37:18

we were going to buy a property,

0:37:180:37:20

we just wanted to go to the auction and see what it's like.

0:37:200:37:22

We ended up putting a bid in and we got it.

0:37:220:37:24

Adele was grabbing me by the arm, saying, "Oh, my God, we've got it."

0:37:240:37:27

And I have to get on camera, I'm shaking and sweating.

0:37:270:37:31

So, wait a minute, let me get this straight,

0:37:310:37:32

you weren't intending to buy this on that day.

0:37:320:37:35

-You went for a little auction rehearsal.

-Yeah.

-Yeah.

0:37:350:37:37

You thought, "We'll just see how it goes."

0:37:370:37:39

-But you ended up spending £29,000.

-That's right, yeah.

0:37:390:37:43

Well, we went prepared with the things to get it, if we did,

0:37:430:37:46

but we didn't think we'd actually get it.

0:37:460:37:48

So, Adele, what sort of research did you do before you bought

0:37:480:37:50

this property?

0:37:500:37:52

Well, we didn't actually come into the property,

0:37:520:37:54

but I spoke to the estate agent who had it on and looked

0:37:540:37:57

at the pictures there and asked him what sort of work it had done to it,

0:37:570:38:01

asked about the electrics, asked about the plumbing,

0:38:010:38:04

what sort of work it needed doing, from that point of view.

0:38:040:38:06

He let me know that the electrics were quite new,

0:38:060:38:08

they had a new plumbing system installed,

0:38:080:38:11

so I thought that all sounded pretty good.

0:38:110:38:13

-Did he remember to tell you the state it was in?

-No.

0:38:130:38:19

He didn't tell me quite how bad the damp was downstairs.

0:38:190:38:22

But you just take a gamble sometimes.

0:38:220:38:25

-So, you really were prepared to take a rather huge risk?

-Yeah, we were.

0:38:250:38:29

-Even though the guide price was temptingly low?

-Yeah.

0:38:290:38:32

You have come unstuck a little bit now, I'm sure you've seen that.

0:38:320:38:35

Yeah. It's a bit more than we thought, isn't it?

0:38:350:38:38

Yeah, it's a bit more, but it's still within our budget,

0:38:380:38:41

so we are not too bothered by it.

0:38:410:38:42

We're going to do a lot of work ourselves.

0:38:420:38:44

By not viewing their first investment project beforehand,

0:38:440:38:49

Alex and Adele did not give themselves the best chance of success here.

0:38:490:38:52

There is just loads of work to do.

0:38:520:38:55

They have got a budget of between 7,000

0:38:550:38:57

and 8,000 and a timescale of between two and three months.

0:38:570:39:01

But they do at least seem to have property developing in their blood.

0:39:010:39:04

I work in construction myself as a project manager,

0:39:040:39:06

so I work in property.

0:39:060:39:07

Adele's father does property development and helped us.

0:39:070:39:10

So we've both got an upbringing in it, so we'll see how it goes.

0:39:100:39:13

-Is this what you'll be doing full-time?

-No.

0:39:130:39:16

I work full-time as a doctor at the moment.

0:39:160:39:18

-So you're a doctor!

-Yeah.

0:39:180:39:20

But you love property more, by the sound of things.

0:39:200:39:23

Well, I love the job that I do,

0:39:230:39:25

but, but this is like a hobby that I love doing,

0:39:250:39:28

sort of a de-stress hobby.

0:39:280:39:30

Oh, I love that coming from a doctor! A DE-STRESS hobby.

0:39:300:39:33

-So, for you, this is somewhere where you can unwind.

-Yeah.

0:39:330:39:36

-For most people they get more stressed than ever.

-No.

0:39:360:39:39

I love doing it, honestly. Haven't I been happier since we bought it?

0:39:390:39:42

She has been bored for a year doing nothing and I have to put up

0:39:420:39:45

with it every evening, saying, "Let's do something."

0:39:450:39:47

So we're doing it now.

0:39:470:39:48

She sat at home yesterday with a big smile on her face from working

0:39:480:39:51

all day.

0:39:510:39:52

Oh! What's it like working with Alex? Is he a great...?

0:39:520:39:55

Is he a good hands-on guy?

0:39:550:39:58

No. I am so much better in work,

0:39:580:40:01

but when it comes to getting your hands dirty, she is so much better.

0:40:010:40:05

On her own, she did all the tiling, built walls,

0:40:050:40:07

bossing all the electrical people about, and I just let her do it.

0:40:070:40:11

And she enjoys it.

0:40:110:40:12

I'll get my hands dirty when she tells me to do it.

0:40:120:40:15

Hold on a minute, you're supposed to be the project manager.

0:40:150:40:17

-I know.

-What's going on with you two?

0:40:170:40:19

I seem to do better on bigger projects, which I run.

0:40:190:40:21

I can't do the refurbishment projects, and she does it herself.

0:40:210:40:24

-So, it keeps her happy.

-So what do you think you bring to the table?

0:40:240:40:28

I actually organise a lot of stuff and deal with people and then Adele

0:40:280:40:31

does all the designing and, I don't know, the hard work, really.

0:40:310:40:36

I'm there digging out floors, knocking walls down

0:40:360:40:39

and Alex will drag an old bucket up the stairs or something.

0:40:390:40:42

-Is that really how it is?

-Yeah.

-Yeah, it is.

0:40:420:40:45

She was shovelling the other day and I was taking everything upstairs. It shouldn't be that way.

0:40:450:40:49

# Cos to my mind She's my kind of girl... #

0:40:490:40:57

Well, however they divide the labour,

0:40:570:40:59

Alex and Adele are opting to leave the layout as it is.

0:40:590:41:03

That is probably wise, given their fairly tight budget and timescale.

0:41:030:41:06

Their plan is to sell the mid-terrace on.

0:41:060:41:09

If they can keep their total outlay to under 40,000,

0:41:090:41:13

they could be looking at a pretty healthy profit.

0:41:130:41:15

What are you going to do

0:41:170:41:18

to really turn it around and make this place worthy of that price?

0:41:180:41:22

I just think making it modern.

0:41:220:41:24

We obviously need to take all the wallpaper off,

0:41:240:41:27

just make sure the walls are skimmed, everything looks clean,

0:41:270:41:30

painted all white, put new carpets down, laminate flooring downstairs,

0:41:300:41:34

modern kitchen, modern bathroom.

0:41:340:41:36

Just make it all up to date, modern, that someone just walks in

0:41:360:41:39

and thinks that this is really nice and just buy it.

0:41:390:41:41

We are hopeful that it's not needing any major work.

0:41:410:41:45

That could smash our budget really.

0:41:450:41:47

Is there anything you are worried about?

0:41:470:41:49

-Not really.

-No, not really.

0:41:490:41:50

We're quite enthusiastic

0:41:500:41:52

about doing it and taking on a challenge with it.

0:41:520:41:54

-I'm not worried about any of it.

-Guys,

0:41:540:41:56

I'm looking forward to seeing the outcome. Congratulations.

0:41:560:41:59

-It's been lovely to meet you both.

-Thanks.

-Thank you.

0:41:590:42:02

So, Dr Adele needed to find a way to de-stress.

0:42:020:42:06

And so she thought she'd buy herself a property that required

0:42:060:42:10

a total refurbishment.

0:42:100:42:12

Mm. Joking aside, buying blind is never ideal.

0:42:120:42:16

A viewing is vital,

0:42:160:42:17

especially when it's your first investment purchase.

0:42:170:42:20

Well, I have given them a telling off,

0:42:200:42:22

but let it be a lesson to you all.

0:42:220:42:24

This has had budget implications

0:42:240:42:26

and now they may not make the profit they had hoped for.

0:42:260:42:30

How are they going to get on?

0:42:300:42:32

Join me later on in the programme and you can find out.

0:42:320:42:36

Well, the clock has been ticking

0:42:380:42:41

and work should be well underway with our properties.

0:42:410:42:43

Have those piles of dusty bricks and bags of cement gone?

0:42:430:42:47

Is the paint dry on the walls?

0:42:470:42:49

Let's find out.

0:42:490:42:51

Back now to Crook, in County Durham, where Ian had bought

0:42:550:42:58

this two-bedroom bungalow at auction for £84,000.

0:42:580:43:03

He is a local dental technician,

0:43:030:43:05

who has diversified into property development and also owns a pub.

0:43:050:43:09

He had a budget of £20,000 and a timescale of around six months

0:43:090:43:12

to turn the bungalow into a home to enjoy with his son, James.

0:43:120:43:16

And the dental technician really wanted to get his teeth

0:43:160:43:19

stuck into this one.

0:43:190:43:21

Take the bedroom out there and build a lounge in that area.

0:43:220:43:24

-And then make the garage, this and this into bedrooms.

-Oh, wow.

0:43:240:43:28

Then moving the bathroom into the corner of the kitchen

0:43:280:43:30

and using this other area as a kitchen.

0:43:300:43:34

It doesn't sound like there's going to be many rooms left

0:43:340:43:37

-as they are.

-Well, the main thing is get a dishwasher in,

0:43:370:43:40

because I don't like washing up.

0:43:400:43:42

HE LAUGHS

0:43:420:43:44

Well, 16 months after our first visit, we're back

0:43:440:43:47

to see if Ian and his son, James,

0:43:470:43:49

are smiling from ear to ear

0:43:490:43:50

or did they bite off more than they could chew?

0:43:500:43:53

Now, I know that Ian had big plans, but I wasn't quite expecting this.

0:44:010:44:06

The garage is moved, there is a brand-new porch, and what a porch!

0:44:060:44:11

And the roof has been replaced.

0:44:110:44:13

And we haven't even seen inside yet.

0:44:130:44:16

The old sitting room has become the first of three bedrooms,

0:44:160:44:20

which you now enter from the newly extended corridor.

0:44:200:44:24

And the bedroom that was off the old sitting room is now part of

0:44:240:44:27

an enormous kitchen-living room.

0:44:270:44:30

The bathroom and the old larder have been knocked into a bigger

0:44:300:44:34

and brighter bathroom.

0:44:340:44:36

The bedroom opposite the bathroom hasn't changed much,

0:44:360:44:39

but there is access to the new garage next to that.

0:44:390:44:42

And the old kitchen is now a bedroom with en suite.

0:44:420:44:47

It's quite a transformation

0:44:470:44:49

and very different to what Ian had initially planned.

0:44:490:44:52

But it has all been possible

0:44:520:44:54

because he managed to increase the size of the plot.

0:44:540:44:56

The land to the rear of the property, we purchased that land.

0:44:580:45:02

The man was willing to sell us it.

0:45:020:45:04

We've used that land to build a kitchen,

0:45:040:45:06

which I think was a wise decision.

0:45:060:45:09

# Doo, doo, doo, doo Da, da, doo, doo... #

0:45:090:45:11

It's a great space and certainly makes a big difference

0:45:110:45:13

to the bungalow.

0:45:130:45:14

But extending out the back has not been completely straightforward.

0:45:140:45:19

We had to buy this land at the back of the property

0:45:190:45:23

because the soil was this far up, so it was creating damp.

0:45:230:45:27

So with having to buy the land,

0:45:270:45:29

we thought we might as well utilise this as a patio area and garden.

0:45:290:45:32

So, we put patio doors in and we build a kitchen extension

0:45:320:45:37

on the land to save knocking the little bedroom down at the front.

0:45:370:45:41

So I think it's made a really good job of it

0:45:410:45:44

and made a better property of it at the end of the day.

0:45:440:45:46

While there is still a bit to do to finish things off,

0:45:460:45:50

this looks like it's going to be a lovely home.

0:45:500:45:53

Ian's son, James,

0:45:530:45:54

seems pretty pleased with his new en suite bedroom, too.

0:45:540:45:57

# And I gotta see your sweet sweet smile every day... #

0:45:570:46:02

What does Ian like best about the bungalow?

0:46:030:46:07

I like the big kitchen.

0:46:070:46:08

I like the big bathroom.

0:46:080:46:10

I like the porch from the outside.

0:46:100:46:12

One of my friends just bought a porch and I say,

0:46:120:46:14

"My porch is better than your porch."

0:46:140:46:17

I've got a dishwasher, so I don't have to do any washing up.

0:46:170:46:20

Well, it sounds like a clean sweep for Ian.

0:46:210:46:24

He did plan to take six months to renovate the property,

0:46:240:46:28

but the goalposts shifted and the extra work here

0:46:280:46:31

accounts for the delay.

0:46:310:46:32

But what about his £20,000 budget?

0:46:320:46:34

I would say I've absolutely lost all sight of that.

0:46:360:46:40

The main reason was I paid 11,000 for the extra piece of land

0:46:400:46:45

and I finished it off to a higher standard.

0:46:450:46:49

So, the real budget is about 40 grand more than what I anticipated,

0:46:490:46:55

but I'm still happy. I'm OK.

0:46:550:46:58

Ian's budget of around £60,000

0:46:580:47:02

takes his total outlay here - including £84,000 purchase price -

0:47:020:47:07

to around £144,000.

0:47:070:47:10

So, has this been a canny investment?

0:47:100:47:12

We invited along two local property experts to hear their thoughts

0:47:140:47:18

on the bungalow.

0:47:180:47:20

He has done a fantastic job in refurbishing.

0:47:200:47:22

I think the key to it was all in the purchase of the rear garden

0:47:220:47:26

to give itself extra scope to go backwards as well as forwards.

0:47:260:47:29

I really like the size and layout of the property.

0:47:290:47:32

There's a good kitchen with working space in there.

0:47:320:47:34

The bedrooms are decent sizes. And also the bathroom is quite big.

0:47:340:47:39

Ian does plan to live in the bungalow,

0:47:410:47:43

but if he were to think about letting it out, the experts

0:47:430:47:47

suggest a rental of between £575 and £595 per month.

0:47:470:47:52

That's a yield of just under 5%.

0:47:520:47:56

But what about the resale value,

0:47:560:47:57

bearing in mind Ian's total spend of £144,000?

0:47:570:48:03

I would put it on the market at £185,000,

0:48:030:48:07

hoping to get in the region of £175,000 to £180,000.

0:48:070:48:12

In the current climate, I would suggest placing the property

0:48:120:48:15

on the open market for a price in the region of £190,000.

0:48:150:48:19

That has got to bring a smile to his face.

0:48:210:48:24

If Ian sold the bungalow,

0:48:240:48:26

he could be looking at a potential profit of between £31,000

0:48:260:48:29

and £46,000 before the usual fees and expenses.

0:48:290:48:34

Does that change the way he feels about the project?

0:48:340:48:38

I am very happy with the property.

0:48:380:48:40

I am very happy with the way the works turned out.

0:48:400:48:43

I plan to, hopefully, live here a long time.

0:48:430:48:46

It is now back to the valleys of South Wales

0:48:500:48:54

and the former coal mining village of Penrhiwceiber,

0:48:540:48:57

where earlier we saw this three-story three-bed terraced house

0:48:570:49:00

bought for 29,000 by Adele and Alex.

0:49:000:49:04

Adele is a junior doctor while Alex is a project manager.

0:49:040:49:08

They seem to have the right credentials

0:49:080:49:10

to cure the property of its problems.

0:49:100:49:12

Or so you'd think.

0:49:120:49:14

What is it like working with Alex?

0:49:140:49:16

Is he a great...? Is he a good hands-on guy?

0:49:160:49:20

No. I'm terrible.

0:49:200:49:21

I'm so much better at work,

0:49:210:49:23

but when it comes to getting your hands dirty, she is so much better.

0:49:230:49:27

She did all the tiling, built walls,

0:49:270:49:29

bossing all the electrical people about.

0:49:290:49:32

I just let her do it. And she enjoys it.

0:49:320:49:34

I'll get my hands dirty when she tells me to do it.

0:49:340:49:36

With the experience of renovating their own house, Dr Adele

0:49:360:49:40

and Alex plan to do this one themselves.

0:49:400:49:43

But with a tight budget of 7,000 to 8,000 and a mere two to three month

0:49:430:49:47

turnaround, it will be interesting to see

0:49:470:49:50

if they can get this particular patient back on its feet.

0:49:500:49:53

Five months later, we returned. From the outside,

0:49:540:49:57

the house doesn't look in the pink of condition,

0:49:570:50:00

but actually it's a lot healthier with the lintels painted

0:50:000:50:03

and a new front door.

0:50:030:50:04

Inside, and the two tired reception rooms have been transformed,

0:50:050:50:09

with re-plastering and redecoration, into much fresher spaces.

0:50:090:50:14

Remember, the house is three-story,

0:50:150:50:17

with the kitchen downstairs. And what a great change here.

0:50:170:50:22

We'll leave it to Adele to explain the turnaround of this room.

0:50:270:50:31

When we bought it, the kitchen was all damp.

0:50:310:50:34

We had to take everything off, strip it completely back.

0:50:340:50:37

We had everything done, proofed, all the floor damp proofed.

0:50:370:50:40

We rendered the whole kitchen, boarded it out

0:50:400:50:43

and plastered everywhere.

0:50:430:50:44

I really wanted an island, so we got that put in.

0:50:440:50:47

Put the units with these two recessed around the chimney breast.

0:50:470:50:51

And a new electric hob, an extractor fan, but we also left

0:50:510:50:55

a gas point there as well in case anyone wanted a gas hob instead.

0:50:550:50:59

I'm really happy with the tap as well.

0:50:590:51:01

Nice, big, modern, pull-out, spray tap. I really like that.

0:51:010:51:05

Yes, the kitchen is looking good.

0:51:050:51:08

And tucked away on the side, the old bathroom has been re-plastered

0:51:080:51:11

and replaced with a completely new suite and tiles.

0:51:110:51:14

Meanwhile, the extension has been refurbished with a new sink unit.

0:51:160:51:21

On a day like today, it must rank as one of the best views

0:51:210:51:24

from a utility room we've ever seen.

0:51:240:51:26

And it's a view that can also be appreciated from the newly

0:51:260:51:30

re-plastered and redecorated rear bedroom.

0:51:300:51:32

The two front bedrooms have been refurbished in the same style.

0:51:340:51:37

You may have noticed that I've mentioned the re-plastering

0:51:370:51:40

a lot because, with no previous experience,

0:51:400:51:43

the couple took on this job themselves.

0:51:430:51:45

I started off with a nice, big bucket

0:51:470:51:49

and then I had a mixing stick,

0:51:490:51:51

I didn't even have the proper mixer for the plaster.

0:51:510:51:54

I had nice, big stick.

0:51:540:51:55

And just basically learned as we went along, really.

0:51:550:51:59

The start-off wasn't the best, was it?

0:51:590:52:01

We progressed in doing the whole house.

0:52:010:52:03

I got shouted out a lot cos I was so bad at the start,

0:52:030:52:05

but I eventually got there with Adele's training.

0:52:050:52:08

To push the renovations through,

0:52:080:52:11

it was vital to have clearly defined roles.

0:52:110:52:14

-I'm the boss.

-She's the boss. I listen.

0:52:140:52:16

I moaned like a girl half the time saying, "I'm not happy," she shouts

0:52:160:52:20

at me, I go off in a mood, come back and we are friends straight away.

0:52:200:52:23

It is quite a good working relationship.

0:52:230:52:25

I'd rather her be the boss cos I'm terrible at leading sometimes.

0:52:250:52:28

Considering I'm a project manager at work.

0:52:280:52:31

# She's the boss, yeah She's the boss... #

0:52:330:52:35

Don't be too hard on yourself, Alex. After all,

0:52:360:52:40

you did supply the muscle to clean up the plot out back,

0:52:400:52:42

lay a new patio and re-turf the garden.

0:52:420:52:45

Alex also repainted the house

0:52:450:52:47

and damp proofed the cellar. And the result?

0:52:470:52:50

A new home that they plan to sell on.

0:52:500:52:54

But it was a tough job for them.

0:52:540:52:56

I think next time we'd want other people doing things

0:52:560:53:00

when we've got a bit more money, because it took weeks, didn't it?

0:53:000:53:03

It took us three or four weeks to get everything done.

0:53:030:53:05

Because it was just the two of us doing the whole house.

0:53:050:53:08

And because we had full-time jobs,

0:53:080:53:09

we have to come on weekends or maybe in the evenings.

0:53:090:53:12

And it took a long time to do.

0:53:120:53:13

The couple live a 25-minute drive away in Cardiff,

0:53:130:53:17

so their hours on the project were limited.

0:53:170:53:20

That did push their original two to three month timescale

0:53:200:53:23

up to five months.

0:53:230:53:25

By doing most of the work themselves, their predicted 7,000

0:53:250:53:29

to £8,000 budget has been pushed only just over the nine grand mark.

0:53:290:53:35

Along with their £29,000 purchase price,

0:53:350:53:38

their total outlay is just over 38,000.

0:53:380:53:43

So, it may have proved tough going,

0:53:430:53:46

but the results have given them lots to be pleased with.

0:53:460:53:48

I think we've done an amazing job, really, in the amount of time.

0:53:480:53:53

We would have liked to do it quicker,

0:53:530:53:54

but I think what we've done, it all looks new, it looks fresh.

0:53:540:53:57

I'm really happy with what we've done, really proud of Adele

0:53:570:54:00

cos she project managed it, led us through,

0:54:000:54:03

done a lot of the work herself and, you know,

0:54:030:54:05

some days I went off and played football and she stayed here

0:54:050:54:08

and got on with it. It's a really good house, it's amazing.

0:54:080:54:11

But will the local property market agreed?

0:54:120:54:14

We asked two local estate agents

0:54:140:54:16

for their thoughts on Adele and Alex's 38 grand investment.

0:54:160:54:22

The property has been improved considerably

0:54:220:54:25

since the last time that I visited.

0:54:250:54:27

They've upgraded the kitchen, general upgrades to the house.

0:54:270:54:31

They've not overspent on this property,

0:54:310:54:34

probably aligning it towards the rental market.

0:54:340:54:37

Well, it's a great improvement.

0:54:370:54:40

And I can see they've spent a few quids bringing it

0:54:400:54:43

to a decent standard.

0:54:430:54:45

There is a much improved kitchen,

0:54:450:54:49

a modern bathroom suite,

0:54:490:54:51

painted a nice plain white throughout with the garden reappointed.

0:54:510:54:56

I think they've done the right things to get it

0:54:560:54:59

attractive in the rental market.

0:54:590:55:00

The estate agents reckon the house is right for letting

0:55:000:55:04

so what could the couple expect in rental?

0:55:040:55:07

I would hope to achieve a minimum £375 per calendar month,

0:55:070:55:11

maybe as much as £400 per calendar month.

0:55:110:55:14

I believe you would comfortably achieve £350 per calendar month.

0:55:140:55:18

I'm quite happy with that.

0:55:180:55:19

We haven't really considered renting, to be honest, but it is a good price.

0:55:190:55:22

-Good for the area.

-Yeah, good for the area.

0:55:220:55:24

More than I expected for rental, yeah.

0:55:240:55:26

Those two figures could give them

0:55:260:55:28

a very healthy annual yield of between 11% and 12.5%.

0:55:280:55:33

Would a resale make any profit on their £38,000 spend?

0:55:330:55:38

I would put this property on the market at between £45,000

0:55:380:55:42

and £50,000.

0:55:420:55:44

I would put this property on the market for £45,000.

0:55:440:55:47

Those figures would mean a possible pre-tax profit

0:55:480:55:50

of between £7,000 and £12,000.

0:55:500:55:54

I think that is quite a good price.

0:55:540:55:56

-I mean, we've definitely made a profit on it.

-Yeah.

0:55:560:55:58

-It's money made, so it's profit, so I would be happy with that.

-Yeah.

0:55:580:56:02

Although this property does seem better suited to the rental market,

0:56:020:56:06

Adele and Alex have put it up for sale for 52,000

0:56:060:56:10

to see how that pans out over the next few months.

0:56:100:56:13

Despite the tough renovation,

0:56:130:56:16

it hasn't put them off any future investments.

0:56:160:56:20

Yeah, I would go back to auction. I really enjoyed the process

0:56:200:56:22

and you can get a great deal on a house.

0:56:220:56:25

Although it took a lot of work,

0:56:250:56:26

we're going to make money on it, even in the state it was.

0:56:260:56:29

That's the way to do it.

0:56:290:56:30

I'm happy to go back to auction and do it all over again.

0:56:300:56:33

Well, join Lucy and I next time when we meet more brave auction buyers

0:56:360:56:40

trying to make a killing on property or just find a place to live.

0:56:400:56:43

-Look forward to seeing you then.

-BOTH: Goodbye.

0:56:430:56:46

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