0:00:02 > 0:00:06Hello. In today's climate, it's increasingly difficult to find your own little bit of house heaven.
0:00:06 > 0:00:08Whether they are large or small,
0:00:08 > 0:00:11auctions are a great place to start looking.
0:00:11 > 0:00:14Yes, so join us now as we follow today's bunch of people
0:00:14 > 0:00:16buying their homes under the hammer.
0:00:41 > 0:00:44If you've decided to take a gamble
0:00:44 > 0:00:46and place a bet on property developing,
0:00:46 > 0:00:48you may well end up at the auction.
0:00:48 > 0:00:51The atmosphere is electric and the action,
0:00:51 > 0:00:52well, it's fast and it's furious.
0:00:52 > 0:00:54So here are the properties
0:00:54 > 0:00:56that inspired the buyers on today's programme.
0:00:58 > 0:01:03This house in Torquay makes my hard beat all the faster.
0:01:03 > 0:01:06Ah, I'm in love already.
0:01:07 > 0:01:10Whereas in Gainsborough, Lincolnshire,
0:01:10 > 0:01:12I think this place could drive you a little mad.
0:01:12 > 0:01:15SHE MAKES SQUEAKING NOISES
0:01:15 > 0:01:17All day and it's going to drive them crazy.
0:01:17 > 0:01:21On a trip to Carlisle in Cumbria,
0:01:21 > 0:01:23I need to find a way of changing the layout
0:01:23 > 0:01:25of this end of terrace property.
0:01:25 > 0:01:27Let's go and see if that might be possible.
0:01:29 > 0:01:32All these properties went to auction.
0:01:32 > 0:01:36We'll find out who bought them and what they paid when they went under the hammer.
0:01:36 > 0:01:37Congratulations!
0:01:42 > 0:01:45Today I've come to Devon to a pretty little suburb of Torquay
0:01:45 > 0:01:47with a real villagey feel.
0:01:47 > 0:01:50It's got a post office, shops and a local pub.
0:01:50 > 0:01:52What more could you want?
0:01:52 > 0:01:55I'm here to see what the auction catalogue described
0:01:55 > 0:01:59as an impressive and substantial Victorian detached villa,
0:01:59 > 0:02:03set in its own private grounds along a gated driveway.
0:02:03 > 0:02:07It sounds pretty good, doesn't it? Let's hope it doesn't disappoint.
0:02:07 > 0:02:10From the outside, certainly not.
0:02:10 > 0:02:12Guide price on this one? Have a guess.
0:02:12 > 0:02:16£345,000 - phew!
0:02:19 > 0:02:23Wow! I'm in total agreement with the auction house.
0:02:23 > 0:02:27This period property is certainly impressive and then some.
0:02:30 > 0:02:32Oh, wow!
0:02:32 > 0:02:35Fantastic! In through the front door, as you might imagine,
0:02:35 > 0:02:36you've got a little entrance porch.
0:02:36 > 0:02:41A lovely old-fashioned reception room there,
0:02:41 > 0:02:42through to the dining room.
0:02:42 > 0:02:46Ah, you know what? You've got to see this. Come on!
0:02:46 > 0:02:50THAT is spectacular!
0:02:50 > 0:02:53Walking into a house like this, stained glass window,
0:02:53 > 0:02:55the staircase...
0:02:55 > 0:02:58Ah, I'm in love already.
0:02:58 > 0:03:03# Love is in the air Everywhere I look around...
0:03:03 > 0:03:06From the stairwell and the entrance hall...
0:03:06 > 0:03:11# Love is in the air Every sight and every sound...
0:03:11 > 0:03:14..to the large reception room with its shuttered windows
0:03:14 > 0:03:16and period features...
0:03:17 > 0:03:20# Love is in the air
0:03:21 > 0:03:25# Love is in the air. #
0:03:27 > 0:03:28..to the back dining room,
0:03:28 > 0:03:32and perhaps the less lovely kitchen, which could do with a little TLC.
0:03:32 > 0:03:37But it's a fair size and has a useful utility area behind.
0:03:37 > 0:03:40Generally it's all certainly got me swooning.
0:03:40 > 0:03:42I just love that, amazing.
0:03:42 > 0:03:45The whole house, the condition of it is just extraordinary.
0:03:45 > 0:03:47You could literally move in here tomorrow.
0:03:47 > 0:03:50You might not like the taste of the decoration
0:03:50 > 0:03:53but what the heck, it's wonderful.
0:03:53 > 0:03:56Three bedrooms - you might expect this place to have more than that
0:03:56 > 0:03:58but they're all a really nice size.
0:03:58 > 0:04:04Double bedroom, but you could always put a king-size bedroom there with an en suite.
0:04:04 > 0:04:08The third bedroom here, again a good size.
0:04:08 > 0:04:11You've also got a family bathroom. What's not to like about this place?
0:04:13 > 0:04:15There really is plenty of space here.
0:04:15 > 0:04:16The master bedroom has an en suite
0:04:16 > 0:04:20that's bigger than most people's bathroom.
0:04:20 > 0:04:22# That's the way Uh-huh uh-huh
0:04:22 > 0:04:24# I like it Uh-huh uh-huh... #
0:04:24 > 0:04:27And it's all in such good condition.
0:04:30 > 0:04:34And as if the space on this level wasn't enough,
0:04:34 > 0:04:35there's another floor.
0:04:35 > 0:04:38Well, upstairs onto the second floor
0:04:38 > 0:04:41and possibly my favourite room in the whole house -
0:04:41 > 0:04:45the attic, at some stage, has been converted to give you this amazing space.
0:04:45 > 0:04:49Interestingly enough, the auction catalogue really plays down this area.
0:04:49 > 0:04:53It's almost like, at some stage, somebody's done the conversion,
0:04:53 > 0:04:56but hasn't received the planning permissions or building regulations,
0:04:56 > 0:04:59so it can't really be marketed as a usable space.
0:04:59 > 0:05:01But get that formalised, speak to the planning office
0:05:01 > 0:05:04and building regulation people, put in whatever you need,
0:05:04 > 0:05:07and this could be either a fourth bedroom
0:05:07 > 0:05:09or what a fantastic play area!
0:05:11 > 0:05:12Again, this is amazing.
0:05:12 > 0:05:15This is just a case of someone boarding a roof space
0:05:15 > 0:05:19and putting in a few electrics, this is a proper conversion,
0:05:19 > 0:05:22albeit lacking full building regulations approval,
0:05:22 > 0:05:25and I guess not conforming to fire regulations either.
0:05:25 > 0:05:27But it's certainly another useful area
0:05:27 > 0:05:31to go with what's already a pretty impressive property.
0:05:31 > 0:05:35With a house like this, you may well expect a really grand garden.
0:05:35 > 0:05:38In this case, it's not, it's not massive -
0:05:38 > 0:05:42a very manageable size. You've got nice mature trees and shrubs.
0:05:42 > 0:05:43The good thing about that is
0:05:43 > 0:05:46it offers privacy and a little bit of protection
0:05:46 > 0:05:49from the busy main road just at the bottom there.
0:05:49 > 0:05:54This is a great family space, with plenty of lawn to play on.
0:05:54 > 0:05:55Yet it's enclosed and secluded
0:05:55 > 0:05:59and a perfect setting for this majestic property.
0:05:59 > 0:06:02So what's the final verdict on this house?
0:06:02 > 0:06:03If you bought it, what would you do?
0:06:03 > 0:06:07This is a fabulous family home.
0:06:07 > 0:06:13Yes, but you could consider running it as a business, maybe as a B&B.
0:06:13 > 0:06:15Or maybe even a nursery or offices, perhaps.
0:06:15 > 0:06:20Or how about carving it up into flats - much more lucrative.
0:06:20 > 0:06:25Look, that would be criminal! You can't do that!
0:06:25 > 0:06:28OK, everybody, calm down, let's leave it as it is.
0:06:30 > 0:06:31So, now that's sorted out,
0:06:31 > 0:06:34let's ask a local estate agent for his opinion -
0:06:34 > 0:06:37what does he think of the place?
0:06:37 > 0:06:39It's a fantastic Victorian villa,
0:06:39 > 0:06:43situated in a prestigious area, Wellswood in Torbay.
0:06:43 > 0:06:48Obviously the property itself is spacious, and en suites,
0:06:48 > 0:06:50family bathroom's a good size.
0:06:50 > 0:06:53Garden surrounding, nice driveway leading up to the property
0:06:53 > 0:06:55which is a nice selling point.
0:06:55 > 0:06:58The house certainly has a lot going for it,
0:06:58 > 0:07:00but how would it fare as an investment?
0:07:00 > 0:07:03The property would rent between £1,100 per calendar month
0:07:03 > 0:07:06to £1,300 calendar month.
0:07:06 > 0:07:08And on the resale market?
0:07:08 > 0:07:12Fully renovated, between £500,000 and £550,000.
0:07:12 > 0:07:15So, with what was a £345,000 guide price,
0:07:15 > 0:07:20values of £500,000 plus sound like music to my ears.
0:07:20 > 0:07:23OFF-KEY PIANO PLAYS
0:07:23 > 0:07:25Oh, you found me.
0:07:25 > 0:07:28You know, a bit like this piano,
0:07:28 > 0:07:30the house needs a little bit of fine-tuning.
0:07:30 > 0:07:34But spend a little bit of money and, boy, oh boy, would it be grand!
0:07:34 > 0:07:38Let's see who bought it when it went under the hammer.
0:07:44 > 0:07:48Lot 45 is a bit special.
0:07:48 > 0:07:54None of your...tat studios here now, right?
0:07:54 > 0:07:57This is a proper Torbay villa house.
0:07:57 > 0:07:58Who'll say 325?
0:07:58 > 0:08:02At 325, 325,
0:08:02 > 0:08:04we're off. 325.
0:08:04 > 0:08:06330? 330.
0:08:06 > 0:08:10330. It can't just be once!
0:08:10 > 0:08:13335. Not for a house like this. 340.
0:08:13 > 0:08:15It's a home, really, isn't it? 345.
0:08:15 > 0:08:18350, 355.
0:08:18 > 0:08:21360. 360...
0:08:21 > 0:08:24365. 365.
0:08:24 > 0:08:27370, 372. Treat the same?
0:08:27 > 0:08:30372, 374.
0:08:30 > 0:08:35At 374. 376 is sat. At 376.
0:08:35 > 0:08:38At 376. 376 once.
0:08:38 > 0:08:40At 376 twice.
0:08:40 > 0:08:44At 376, here it goes, lot 45.
0:08:44 > 0:08:46Congratulations, well done.
0:08:46 > 0:08:52The successful bidders at £376,000 were Mandy and Steve.
0:08:52 > 0:08:57Steve's a car salesman and commercial property manager,
0:08:57 > 0:08:59and Mandy has her own jewellery business.
0:08:59 > 0:09:01They've been together for a year and a half.
0:09:01 > 0:09:05This amazing property will be their first house together,
0:09:05 > 0:09:07and what an incredible place to start!
0:09:08 > 0:09:11- Steve, Mandy, lovely to meet you. Congratulations!- Thank you.
0:09:11 > 0:09:13- Thank you.- You must be very excited?
0:09:13 > 0:09:16- Absolutely, yes. - Really excited, yes.
0:09:16 > 0:09:19Tell me why you wanted to buy this fantastic house?
0:09:19 > 0:09:21I fell in love with it, didn't I?
0:09:21 > 0:09:25Steve had seen it and he said to me, "Go down, it's up for auction,
0:09:25 > 0:09:28"but it's on Wednesday," so I came and had 10 minutes round the place.
0:09:28 > 0:09:31But as soon as I walked through the door, I was like,
0:09:31 > 0:09:32"I've got to have it, love it."
0:09:32 > 0:09:36- Yeah.- So that was it. - So we went down and brought it.
0:09:36 > 0:09:38# She's got it
0:09:38 > 0:09:41# Yeah, baby, she's got it... #
0:09:41 > 0:09:44So, Mandy's now got her dream home.
0:09:44 > 0:09:47For Steve, it's a return to the area he grew up in
0:09:47 > 0:09:51and he remembers the house from when he was a boy.
0:09:51 > 0:09:54They'd been looking for a place for over six months,
0:09:54 > 0:09:57so couldn't believe their luck when this came up for auction.
0:09:57 > 0:09:59Tell me what you'll do with the place.
0:09:59 > 0:10:04OK, well, the kitchen first, obviously.
0:10:04 > 0:10:07I think we're going to extend or rip out the kitchen
0:10:07 > 0:10:09or maybe knock a wall out there.
0:10:09 > 0:10:12Let some more light into the kitchen cos it's a bit dark.
0:10:12 > 0:10:15And then from there, we'll go upstairs into the bathroom,
0:10:15 > 0:10:17put a walk-in shower unit...
0:10:17 > 0:10:20..like a wet room, we want to do that.
0:10:20 > 0:10:23Talking of walk-in wet rooms, with as much space as this,
0:10:23 > 0:10:28is Mandy tempted to put a walk-in wardrobe into the master bedroom?
0:10:28 > 0:10:33No, because what I want to do is, one of the spare rooms, I want to
0:10:33 > 0:10:36make that a wardrobe, a whole room for my clothes and shoes.
0:10:36 > 0:10:38Yeah, that's what I want to do.
0:10:38 > 0:10:41What kind of budget have you got for doing the work?
0:10:41 > 0:10:47Initial budget to start, I think we have about £25,000.
0:10:47 > 0:10:49- We'll see how far that takes us. - Yeah.
0:10:49 > 0:10:53Steve and Mandy are happy to tackle the DIY side of things,
0:10:53 > 0:10:56but will employ tradesmen for the larger jobs.
0:10:56 > 0:10:58This is their first place together
0:10:58 > 0:11:01and they're giving themselves about a year to get the work done.
0:11:01 > 0:11:05But although they love the house, do they have the same tastes?
0:11:05 > 0:11:07First time I've done a period property.
0:11:07 > 0:11:11Everything else I've ever done is modern and contemporary.
0:11:11 > 0:11:15We might have to fit a few, well...period things in.
0:11:15 > 0:11:18Yeah, you're really modern, aren't you?
0:11:18 > 0:11:20I'm going to struggle with that one.
0:11:20 > 0:11:22Would you like period or modern?
0:11:22 > 0:11:25No, I like the older... I like period, yeah.
0:11:25 > 0:11:29Steve likes modern, so we're going to try and mix the two.
0:11:29 > 0:11:33Listen, fantastic. Congratulations. I'm really pleased for you
0:11:33 > 0:11:36- and I can't wait to see how you get on.- OK.
0:11:36 > 0:11:40# Just what I've always wanted
0:11:41 > 0:11:46# Oh-oh, just what I've always wanted. #
0:11:46 > 0:11:49Well, Mandy and Steve, clearly absolutely delighted
0:11:49 > 0:11:53to have got this as their new home, and quite rightly so.
0:11:53 > 0:11:55I think they're being realistic about the budget too.
0:11:55 > 0:11:58A property like this could swallow up the funds.
0:11:58 > 0:12:00I think there might be a few squabbles
0:12:00 > 0:12:03over whether they go modern or period in the redecoration,
0:12:03 > 0:12:09and exactly how big is Mandy's walk-in ward-room, as opposed to wardrobe, going to be?
0:12:09 > 0:12:11You can find out later in the show.
0:12:15 > 0:12:17This is Gainsborough, a small market town
0:12:17 > 0:12:19in Lincolnshire on the River Trent.
0:12:19 > 0:12:24Once a port, the Riverside area has recently been transformed
0:12:24 > 0:12:27with a £20 million regeneration project,
0:12:27 > 0:12:30but there are still buildings remaining from Gainsborough's past.
0:12:30 > 0:12:35The Old Hall is one of the best-preserved medieval manor houses in the country.
0:12:35 > 0:12:37It's over 500 years old.
0:12:37 > 0:12:44Well, not quite as ancient as Gainsborough's Old Hall is the property I'm here to see.
0:12:44 > 0:12:48It's a modern two-bed semi-detached, built circa the 1990s,
0:12:48 > 0:12:51and it's just a short stroll from the town centre.
0:12:51 > 0:12:54Architecturally, I know what you're thinking -
0:12:54 > 0:12:59it's not that interesting - but the guide price, well, £50,000.
0:12:59 > 0:13:02I'm going to take a closer look.
0:13:03 > 0:13:06The dark wooden-framed windows do date the house a bit
0:13:06 > 0:13:08and the front garden needs a quick tidy-up,
0:13:08 > 0:13:11but overall, it looks in reasonable condition.
0:13:11 > 0:13:14Oh, much bigger than I expected!
0:13:14 > 0:13:19And not in too bad condition. It's very empty and echoey in here
0:13:19 > 0:13:21because there's just floorboards down.
0:13:21 > 0:13:23A bit of a busy, noisy road out there,
0:13:23 > 0:13:28so the first thing I'd do would be to have double glazing put in.
0:13:28 > 0:13:32It does have that '90s feel - look at all this brown-stained wood.
0:13:32 > 0:13:35It's surprising what a tin of white paint can do.
0:13:35 > 0:13:38It'll bring this property back to modern standards,
0:13:38 > 0:13:40and I think that's what it needs -
0:13:40 > 0:13:43lots of white paint, some nice carpet.
0:13:43 > 0:13:47You could really put character back in here because, as it is, it's a bit bland.
0:13:47 > 0:13:49Let's look at the kitchen.
0:13:49 > 0:13:52Ooh, there's easily enough room for a little table in here
0:13:52 > 0:13:55so you can call this an eat-in kitchen.
0:13:55 > 0:13:58But you can see, it's really dated.
0:13:58 > 0:14:02It needs a complete overhaul, get it out in the skip, brand-new kitchen.
0:14:02 > 0:14:04It's just a little bit crammed.
0:14:04 > 0:14:06Look, you'd be getting stuff out of the oven,
0:14:06 > 0:14:09then going to the dishwasher, and it's just...
0:14:09 > 0:14:13You've just got to rethink the space, it needs a complete reshuffle.
0:14:13 > 0:14:15Through that little doorway there
0:14:15 > 0:14:19is a room big enough to house the utility, the white goods.
0:14:19 > 0:14:22Currently, it's just housing the boiler - a total waste of space.
0:14:22 > 0:14:26If this was my kitchen, I'd shuffle it all around,
0:14:26 > 0:14:29then you'd have a really nice area to cook and to entertain.
0:14:29 > 0:14:33# Let me entertain you... #
0:14:33 > 0:14:38So it may not be able to stage any enormous dinner parties,
0:14:38 > 0:14:40but you can certainly improve what space there is.
0:14:40 > 0:14:45Upstairs, there's a peachy bathroom, which again dates the property.
0:14:45 > 0:14:47A white suite alone would do wonders.
0:14:47 > 0:14:50The second bedroom is rather compact,
0:14:50 > 0:14:53but, with some redecoration, it would be just fine.
0:14:54 > 0:14:57There's still lots of brown everywhere to dazzle you upstairs,
0:14:57 > 0:14:59but once you've got over that,
0:14:59 > 0:15:01you've got a good-sized double bedroom here.
0:15:01 > 0:15:06Look at this - loving this! Huge area, nice big wardrobe space.
0:15:06 > 0:15:08You could almost call it walk-in.
0:15:08 > 0:15:12Somewhere to store all your shoes, handbags and clothes.
0:15:12 > 0:15:15Or is that just me? Anyway, I've got a bit of a story.
0:15:15 > 0:15:18If you look down here, there are boards everywhere.
0:15:18 > 0:15:21I used to have a flat in London
0:15:21 > 0:15:26and I used to drive the lady who lived downstairs absolutely crazy
0:15:26 > 0:15:28because all she could hear was...
0:15:28 > 0:15:31CREAKING Can you hear that noise?
0:15:31 > 0:15:33It really used to squeak.
0:15:33 > 0:15:37So my advice is, get down here, get rid of these nails,
0:15:37 > 0:15:41and put in screws, and do them up really tight,
0:15:41 > 0:15:43then lay the carpet.
0:15:43 > 0:15:47Otherwise, your friends and neighbours are just going to be listening to...
0:15:47 > 0:15:50SQUEAKS
0:15:50 > 0:15:52..all day, and it's going to drive them crazy.
0:15:52 > 0:15:56# Maybe you're crazy
0:15:58 > 0:16:01# Maybe we're crazy... #
0:16:01 > 0:16:06But would you be crazy to buy this house, guided at £50,000?
0:16:06 > 0:16:10As a starter home or a buy-to-let, it looks pretty good.
0:16:10 > 0:16:13It just needs a bit of sprucing up inside.
0:16:13 > 0:16:16At first, the outside space looks promising,
0:16:16 > 0:16:18with a decent-sized garden.
0:16:18 > 0:16:22It even has its own off-street parking at the back - all positives.
0:16:22 > 0:16:25So the house doesn't need much work - tick.
0:16:25 > 0:16:29Garden small, but perfectly formed - tick.
0:16:29 > 0:16:32But here is the big uh-uh!
0:16:32 > 0:16:36This property is right next to an electricity substation,
0:16:36 > 0:16:38so a big negative.
0:16:38 > 0:16:41There have been a few stories about families
0:16:41 > 0:16:44living near to substations becoming ill,
0:16:44 > 0:16:48allegedly due to the electromagnetic fields they create.
0:16:48 > 0:16:51But the link has never been scientifically proven
0:16:51 > 0:16:54and the fact is, everyday electrical devices, like TVs,
0:16:54 > 0:17:00mobile phones, hairdryers - they all produce magnetic fields.
0:17:00 > 0:17:03But whatever you believe, having this right next door
0:17:03 > 0:17:07might put some people off buying or renting this property.
0:17:07 > 0:17:11Something to bear in mind if you're after a quick sale in the future.
0:17:11 > 0:17:12# Danger, danger
0:17:12 > 0:17:14# High voltage
0:17:14 > 0:17:17# When we touch When we kiss, when we touch... #
0:17:17 > 0:17:21That's a bit of a shocker, just as it was going so well.
0:17:21 > 0:17:23But how much of a negative
0:17:23 > 0:17:26is having an electricity substation next to your house?
0:17:26 > 0:17:30What does a local estate agent think of this place,
0:17:30 > 0:17:32that was guided at £50,000?
0:17:33 > 0:17:34The nearby substation
0:17:34 > 0:17:36could raise question marks for potential buyers.
0:17:36 > 0:17:38It could affect saleability
0:17:38 > 0:17:41and the final negotiated purchase price.
0:17:41 > 0:17:43But it's not uncommon
0:17:43 > 0:17:46to see substations close to properties in residential areas.
0:17:46 > 0:17:50What about the house itself, and its location?
0:17:50 > 0:17:52The property is on a busy main road,
0:17:52 > 0:17:56but only minutes from the centre of Gainsborough itself.
0:17:56 > 0:17:57It's a modern area
0:17:57 > 0:18:00and would benefit from general refurbishment internally,
0:18:00 > 0:18:03but does have the plus point of off-road parking to the rear.
0:18:03 > 0:18:08So, pros and cons of the property. But how about it as an investment?
0:18:10 > 0:18:12In my opinion, the property would achieve
0:18:12 > 0:18:14in the region of £400 to £425 per calendar month.
0:18:14 > 0:18:17In a reasonable standard, I would expect the property
0:18:17 > 0:18:20to achieve somewhere in the region of £70,000 - 75,000.
0:18:20 > 0:18:23It may have an unpopular neighbour on one side, but even so,
0:18:23 > 0:18:27with a bit of work, there could be a potential boost to its value.
0:18:27 > 0:18:32Well, this may be just an ordinary, rather unexciting property,
0:18:32 > 0:18:36but in terms of an investment, it makes perfect sense.
0:18:36 > 0:18:39This house just needs a simple, cosmetic overhaul
0:18:39 > 0:18:42which shouldn't cost too much or take too long.
0:18:42 > 0:18:45It's basically a straightforward development.
0:18:45 > 0:18:48But let's not overlook that substation.
0:18:48 > 0:18:51That is definitely something to consider.
0:18:51 > 0:18:54So who was looking for a simple semi like this?
0:18:54 > 0:18:56Let's find out at the auction.
0:18:58 > 0:19:02Thank you. Right, lot number 5, we come back to Gainsborough.
0:19:02 > 0:19:05A good, modern townhouse, two bedrooms, bathroom upstairs.
0:19:07 > 0:19:1040, £40,000 I'm bid, thank you.
0:19:10 > 0:19:12£40,000 I'm bid. 41, 42, 43.
0:19:12 > 0:19:14At 43,000. 44.
0:19:14 > 0:19:18At 45. 45, 46.
0:19:18 > 0:19:2347. 47, 48, 49 for you? 49,000.
0:19:23 > 0:19:2750 for you? At £50,000 I'm bid. Here on my right.
0:19:27 > 0:19:29£50,000. 500 anywhere?
0:19:29 > 0:19:31500.
0:19:31 > 0:19:3351, sir. 500.
0:19:33 > 0:19:37500. 52,500.
0:19:37 > 0:19:4253,000. 500? 500.
0:19:42 > 0:19:4554,000. 500? 54,500.
0:19:45 > 0:19:4655,000?
0:19:47 > 0:19:49No?
0:19:49 > 0:19:51At £54,500 on the left here.
0:19:51 > 0:19:55All done at £54,500 for the first time,
0:19:55 > 0:19:57second,
0:19:57 > 0:20:00third and last time, at £54,500.
0:20:00 > 0:20:05No? Gentleman at the end of the bar, best place to be, sir.
0:20:05 > 0:20:10So, the Gainsborough semi sold for £54,500 to Wayne
0:20:10 > 0:20:13who comes from Leeds but now lives in Lincolnshire.
0:20:13 > 0:20:16Wayne runs his own joinery and building business.
0:20:16 > 0:20:19I met him back at the house to find out his plans.
0:20:21 > 0:20:25Wayne, congratulations. You bid for it, you bought it. Here we are.
0:20:25 > 0:20:29- Yep.- How you feel?- Nervous. - Why are you nervous?
0:20:29 > 0:20:31Are you scared that you bought this at auction?
0:20:31 > 0:20:36A little bit. It's unseen, isn't it? Unseen, unsure, but should be good.
0:20:36 > 0:20:40- Did you do any research? - Come to view it, day before.
0:20:40 > 0:20:43Didn't have a lot of time to do much thinking about it,
0:20:43 > 0:20:45but viewing some of the other ones around here,
0:20:45 > 0:20:47I think I made the right decision.
0:20:47 > 0:20:52Wayne has viewed 50 to 60 houses in the last six months,
0:20:52 > 0:20:55so should know exactly what he's looking for.
0:20:55 > 0:20:58This wasn't his only recent property purchase either.
0:21:00 > 0:21:04This is one of three, so we're going to be busy anyway.
0:21:04 > 0:21:07- So why have you bought three? - It was bad timing, really.
0:21:07 > 0:21:11It came to auction when I was already purchasing another one.
0:21:11 > 0:21:13We got the keys for this one last Tuesday
0:21:13 > 0:21:16and the other two keys on Friday last week.
0:21:16 > 0:21:18So they have all come the same week.
0:21:18 > 0:21:20But I'm sure we'll get through.
0:21:20 > 0:21:23What's the game plan, have you bought this to sell on or rent out?
0:21:23 > 0:21:28They're all bought for a pension plan, if you like, so if I can have them all renovated,
0:21:28 > 0:21:33tidied up, rent them out, after the term of the mortgage is paid in 20 years,
0:21:33 > 0:21:37that's when I can hang my coat up, if you like.
0:21:39 > 0:21:43Wayne dips into the property market when his main business slows down.
0:21:43 > 0:21:46There are advantages to buying three properties at the same time.
0:21:46 > 0:21:49He can move the trades from one to another and bulk buy.
0:21:49 > 0:21:51And with Wayne running his own company,
0:21:51 > 0:21:56he's already worked out the schedule for all three of them.
0:21:56 > 0:21:59What are you going to do to really turn this place around?
0:21:59 > 0:22:02My programme on this is a new kitchen, brand-new bathroom,
0:22:02 > 0:22:06everything out, all tiles, bathroom suites out, showers and everything.
0:22:06 > 0:22:09I'm happy about that. It was too peachy for my liking.
0:22:09 > 0:22:11I'm glad you're going to change that.
0:22:11 > 0:22:14- I was going to save that for you. - I don't want it! No thanks!
0:22:14 > 0:22:17The whole of this property is dated.
0:22:17 > 0:22:21It's tired, a bit out of date now, it needs modernising, really.
0:22:21 > 0:22:25The interior of the house should be relatively straightforward for Wayne,
0:22:25 > 0:22:28but there's still the small issue of that unwanted neighbour.
0:22:28 > 0:22:30# You know, I hate to ask
0:22:32 > 0:22:36# But are friends electric? #
0:22:36 > 0:22:39Tell me - do you think they may be put off by the substation outside?
0:22:39 > 0:22:40Possibly.
0:22:40 > 0:22:43If you view the properties that have got
0:22:43 > 0:22:48a 10-year-old kitchen and bathroom, and tired and mucky, if you like,
0:22:48 > 0:22:50you know, grout all limescaled up,
0:22:50 > 0:22:53and this is all pristine and brand-new,
0:22:53 > 0:22:54I hope that's going to sway for me.
0:22:54 > 0:22:57In due time, I will put windows and doors in.
0:22:57 > 0:23:01The double glazing will maybe mask any sound you might have heard.
0:23:01 > 0:23:03But it won't be getting done just yet, the windows.
0:23:03 > 0:23:07I think Wayne's approach to the refurbishment is right.
0:23:07 > 0:23:11The substation next door will have less effect on tenants than on buyers.
0:23:11 > 0:23:14But with only a general cosmetic upgrade planned,
0:23:14 > 0:23:17I was intrigued to know Wayne's budget.
0:23:17 > 0:23:21I'm hoping to turn this round in the region of £4,500 to £5,000.
0:23:21 > 0:23:25How long do you think it'll take to get in, do it up and get back out?
0:23:25 > 0:23:28I've got a rough programme on it. Three weeks, I reckon I can do it in
0:23:28 > 0:23:32but everybody says that, so I'm saying four to give me some time.
0:23:32 > 0:23:35- A completely refurb in four weeks, £5,000.- Yep.
0:23:35 > 0:23:38- OK, I'm going to hold you to that. - Good.- Good luck.
0:23:38 > 0:23:41- I hope you don't work too hard. Thanks, Wayne.- Cheers.
0:23:41 > 0:23:44Well, our Wayne doesn't do anything by halves, does he?
0:23:44 > 0:23:47He's bought three properties in quick succession
0:23:47 > 0:23:50and now he's got three properties to renovate.
0:23:50 > 0:23:53Will this house be put on the back burner
0:23:53 > 0:23:56while he concentrates on the other two,
0:23:56 > 0:24:01or will he have time to turn it around in just four weeks for £5,000?
0:24:01 > 0:24:05You can find out how he gets on later in the programme.
0:24:06 > 0:24:09Coming up, in Carlisle, Cumbria, is this house
0:24:09 > 0:24:13right for the resale market or is rental the better option?
0:24:13 > 0:24:16Look at those figures and then make your choice.
0:24:16 > 0:24:18In Gainsborough, Lincolnshire,
0:24:18 > 0:24:21does Wayne plan to become a full-time developer?
0:24:21 > 0:24:23If they were all like this, I'd do them every day,
0:24:23 > 0:24:25but they're not always as easy as this one.
0:24:27 > 0:24:28But first, back in Torquay,
0:24:28 > 0:24:31are Mandy and Steve pleased with their purchase?
0:24:31 > 0:24:35Now we've added our touches to it, it's very nice, I'm very happy.
0:24:41 > 0:24:44It was in Torquay, Devon, where we first saw
0:24:44 > 0:24:49this absolutely splendid three-bedroomed Victorian villa.
0:24:49 > 0:24:53Set within its own garden, this grand house with high ceilings,
0:24:53 > 0:24:57bags of character features and well-proportioned rooms,
0:24:57 > 0:25:01even had the bonus of a fully converted loft space.
0:25:01 > 0:25:04It was one of those houses to excite the emotions.
0:25:04 > 0:25:07For car salesman and commercial property manager Steve
0:25:07 > 0:25:10and partner Mandy who owns her own jewellery business,
0:25:10 > 0:25:13this was exactly what they'd been looking for.
0:25:13 > 0:25:16I fell in love with it, didn't I? Steve had seen it and he said to me,
0:25:16 > 0:25:20"Quick, go down, it's up for auction, but it's on Wednesday."
0:25:20 > 0:25:21So I had 10 minutes around the place,
0:25:21 > 0:25:24but as soon as I walked through the door, I was like,
0:25:24 > 0:25:27- "Oh, got to have it, love it!"- Yeah.
0:25:27 > 0:25:29- So that was it. - Yeah, we went down and bought it.
0:25:29 > 0:25:33They bought it for £376,000 at auction
0:25:33 > 0:25:36as their first home together.
0:25:36 > 0:25:39And with a very rough budget of between £20,000 and £25,000,
0:25:39 > 0:25:43they planned to give the house the loving update and upgrade it deserved.
0:25:47 > 0:25:50Now, a full 15 months later, we're back.
0:25:50 > 0:25:55Not surprisingly, that splendid exterior hasn't really changed much.
0:26:00 > 0:26:02But what about inside?
0:26:04 > 0:26:07Steve and Mandy have started the process
0:26:07 > 0:26:09of turning it into their own home.
0:26:09 > 0:26:14So, the big reception room is now a comfortable modern lounge.
0:26:23 > 0:26:28Whereas the rear reception area has been made into another chill-out zone
0:26:28 > 0:26:30and has French doors out into the garden,
0:26:30 > 0:26:34plus a new patio and decked area,
0:26:34 > 0:26:39while the whole of that pokey kitchen really has been transformed.
0:26:39 > 0:26:41When we first came into the property,
0:26:41 > 0:26:44there were small brown tiles on the floor and it was dark.
0:26:44 > 0:26:46It really closed the place in.
0:26:46 > 0:26:49Over there, there was a wall which has all been taken out
0:26:49 > 0:26:53to let more light in and to open it up, because it was very small.
0:26:53 > 0:26:57The size of this kitchen was tiny, considering the size of the house.
0:26:57 > 0:26:59The units, we've kept.
0:26:59 > 0:27:03We've just moved them around because there's nothing wrong with them,
0:27:03 > 0:27:06they're really nice. And the worktops as well, this is all new.
0:27:06 > 0:27:09This is lovely, I really like these worktops,
0:27:09 > 0:27:12and the kitchen's really cosy. I'm happy with it.
0:27:12 > 0:27:16So, with a kitchen now much more suitable for the size of the house,
0:27:16 > 0:27:19it was then a matter of tackling the first-floor rooms.
0:27:26 > 0:27:30The master bedroom has been redecorated,
0:27:30 > 0:27:32recarpeted and furnished.
0:27:36 > 0:27:39The en suite bathroom is completely modernised,
0:27:39 > 0:27:41with a fantastic shower installed.
0:27:46 > 0:27:49The second bedroom has been refurbished,
0:27:49 > 0:27:52and although the family bathroom hasn't been altered much,
0:27:52 > 0:27:54it looks like Mandy and Steve
0:27:54 > 0:27:58have really started to stamp their mark on the house.
0:27:58 > 0:28:00But with Steve keen on a more modern look,
0:28:00 > 0:28:03and Mandy on a more traditional style,
0:28:03 > 0:28:05how did they decide on the finished result?
0:28:05 > 0:28:07I think we have compromised quite a lot, really.
0:28:07 > 0:28:10Yes, I've put some modern lighting through the house
0:28:10 > 0:28:13and we've got mood lighting and things like that.
0:28:13 > 0:28:14We've kept the lounge neutral.
0:28:14 > 0:28:19We've kept all the cornices, the ceiling roses
0:28:19 > 0:28:22and we've kept the window in the lounge
0:28:22 > 0:28:26and we've just kept as much as possible, really.
0:28:26 > 0:28:28No, Steve wasn't too bad.
0:28:28 > 0:28:31It seems to me that Mandy has got what she wanted,
0:28:31 > 0:28:33with a strong traditional feel to the house.
0:28:33 > 0:28:36But high on their wish list was to convert
0:28:36 > 0:28:38one of the rooms into a walk-in wardrobe.
0:28:38 > 0:28:40Has she done that?
0:28:40 > 0:28:46# Oh-oh, just what I've always wanted. #
0:28:46 > 0:28:50That hasn't happened yet. I'm still working on that.
0:28:50 > 0:28:54But we've got the spare room, I just need to get it all fitted
0:28:54 > 0:28:59and get someone around and measure up, but yes, that's my goal.
0:28:59 > 0:29:00# Dreams can come true #
0:29:00 > 0:29:03# Look at me, babe I'm with you
0:29:03 > 0:29:05# You know you got to have hope
0:29:05 > 0:29:07# You know you got to be strong... #
0:29:07 > 0:29:12So, the third bedroom remains just a storeroom for her clothes.
0:29:12 > 0:29:14A dream still unfulfilled,
0:29:14 > 0:29:19as is the conversion of the top floor into an en suite bedroom.
0:29:19 > 0:29:24But a large house like this takes not only a lot of time to get it right, but a fair amount of money.
0:29:27 > 0:29:29The budget we worked on, between £20,000 and £25,000,
0:29:29 > 0:29:33and I think we've come to the £20,000 really.
0:29:33 > 0:29:38Their current spend of £20,000 on top of that £376,000 purchase price
0:29:38 > 0:29:43takes their total outlay to £396,000.
0:29:43 > 0:29:47So, have their hearts ruled their heads with the purchase of this house?
0:29:47 > 0:29:50What do two local estate agents think?
0:29:50 > 0:29:52I think it's been fantastically well renovated.
0:29:52 > 0:29:55It's very modern, yet it's kept its character throughout,
0:29:55 > 0:29:57which I think is a credit to its owners.
0:29:57 > 0:29:58It's a very nice property.
0:29:58 > 0:30:01They've done it up to a high standard and obviously
0:30:01 > 0:30:02put a lot of work into it.
0:30:02 > 0:30:04I like the approach, I like the sweeping driveway,
0:30:04 > 0:30:08the size of the rooms, and it has quite a grand feel about it.
0:30:11 > 0:30:13They seem to like the house.
0:30:13 > 0:30:19Does that mean Steve and Mandy invested £396,000 wisely?
0:30:21 > 0:30:24Taking into account the current market conditions,
0:30:24 > 0:30:27I'd look to market this property at £495,000.
0:30:27 > 0:30:29We could put the property on the market
0:30:29 > 0:30:30for approximately £550,000.
0:30:30 > 0:30:35Those figures would show a healthy pre-tax profit
0:30:35 > 0:30:38of between £99,000 and £154,000. What do they think of that?
0:30:38 > 0:30:41More than what I expected, yes.
0:30:41 > 0:30:46I was thinking more 450, 470, but that's pleasantly surprising.
0:30:46 > 0:30:50And I said 500,000, didn't I? So I'm pleased.
0:30:50 > 0:30:53So this may have turned into a very profitable investment,
0:30:53 > 0:30:58but has it also been transformed into their home?
0:30:58 > 0:31:01It does feel like home. It's got a nice feel.
0:31:01 > 0:31:05It's really cosy and now we've added our touches to it, it's very nice.
0:31:05 > 0:31:08- I'm very happy.- Yes, a fantastic house, a fantastic home.
0:31:08 > 0:31:12We have some great times and good parties and good family.
0:31:12 > 0:31:14# Celebrate good times
0:31:14 > 0:31:16# Come on
0:31:19 > 0:31:22# Celebrate good times
0:31:22 > 0:31:23# Come on... #
0:31:28 > 0:31:31Today, I'm in Carlisle,
0:31:31 > 0:31:33the ancient fortress border city.
0:31:33 > 0:31:36It's the most besieged city in Britain.
0:31:36 > 0:31:37Its 900-year-old castle has seen it all
0:31:37 > 0:31:40and is remarkably well preserved,
0:31:40 > 0:31:43considering the number of battles it's been involved in.
0:31:43 > 0:31:47'Was today's property worth battling for in the auction room?'
0:31:47 > 0:31:49Well, just a mile from the city centre,
0:31:49 > 0:31:52just off the main road into Carlisle,
0:31:52 > 0:31:54is the property I'm here to see.
0:31:54 > 0:31:57It's a two-bed end-of-terrace.
0:31:57 > 0:32:00Lots of pebble dash, but let's take a look inside.
0:32:00 > 0:32:02# Roll away your stone
0:32:02 > 0:32:04# I'll roll away mine...
0:32:04 > 0:32:07Well, its outer appearance may not be to everyone's taste.
0:32:07 > 0:32:09# Together we can see
0:32:09 > 0:32:11# What we will find... #
0:32:11 > 0:32:14But as an end of terrace, you have that little bit of extra room,
0:32:14 > 0:32:17even an entrance to the back yard from the side.
0:32:17 > 0:32:20The auction guide price was 40,000,
0:32:20 > 0:32:22so will the good news continue inside?
0:32:22 > 0:32:25Double-glazed door and windows, which is a good start,
0:32:25 > 0:32:28and then into your living room.
0:32:28 > 0:32:31Nice high ceilings, I like that.
0:32:31 > 0:32:35- HE LAUGHS - Obviously, it needs a touch-up,
0:32:35 > 0:32:38but nothing too dramatic and it doesn't smell damp.
0:32:38 > 0:32:44Through into the kitchen and a bit more work required.
0:32:44 > 0:32:46The units don't look like they're that old,
0:32:46 > 0:32:50but, obviously, not exactly brilliant quality,
0:32:50 > 0:32:54so a bit of time and money spent in here would make a big difference.
0:32:54 > 0:32:57Downstairs loo. I haven't seen upstairs yet, so I don't know
0:32:57 > 0:32:59if there's space for that, but, if you could,
0:32:59 > 0:33:02to move that upstairs would be the ideal thing to do
0:33:02 > 0:33:05and then you'd create a much bigger space down here.
0:33:05 > 0:33:07Let's go and see if that might be possible.
0:33:07 > 0:33:10This area, quite frankly, is a bit of a mess.
0:33:10 > 0:33:13The downstairs bathroom doesn't even have a bath.
0:33:13 > 0:33:16And, with all the doors eating into the kitchen area,
0:33:16 > 0:33:17the layout really doesn't work.
0:33:17 > 0:33:22There's certainly no wow factor here. More an "urgh" factor.
0:33:22 > 0:33:26So this needs a complete rethink to unlock its potential.
0:33:26 > 0:33:28Maybe the key lies upstairs.
0:33:28 > 0:33:32Got a rear bedroom there, that's not big enough for a bathroom,
0:33:32 > 0:33:35but up these little steps into the front bedroom and,
0:33:35 > 0:33:41a bit of exploring, a big cupboard there with a hot water tank in it.
0:33:41 > 0:33:45Get rid of that, put a combination boiler in the kitchen downstairs
0:33:45 > 0:33:47to give yourself some more space,
0:33:47 > 0:33:51and I think this bedroom is big enough to create a bathroom in.
0:33:51 > 0:33:54Whether you do it or not, well, if you're living here,
0:33:54 > 0:33:56it would be a nice thing to have.
0:33:56 > 0:33:59If you're doing it for the money, what difference would it make
0:33:59 > 0:34:02to the value of the property or what you might get in rent?
0:34:02 > 0:34:04Look at those figures and make your choice.
0:34:05 > 0:34:10Personally, I think since you're going to need to do some work on that downstairs area,
0:34:10 > 0:34:13moving the bathroom upstairs would make sense
0:34:13 > 0:34:16and may not add significantly to your budget.
0:34:16 > 0:34:19The benefits to the kitchen space would probably outweigh
0:34:19 > 0:34:23the loss to the bedroom area, but there is another option.
0:34:23 > 0:34:25# It's your choice...
0:34:25 > 0:34:29Well, at the rear of the property, you've got this courtyard.
0:34:29 > 0:34:31Something that might be of better use of this space
0:34:31 > 0:34:34is to consider what next door have done - to put in an extension.
0:34:34 > 0:34:37Obviously, planning permission has been allowed for that.
0:34:37 > 0:34:40It may be within permitted development rules,
0:34:40 > 0:34:42so check that out and think about it.
0:34:42 > 0:34:44Again, based on whether or not
0:34:44 > 0:34:46it's worth it for you personally or financially.
0:34:46 > 0:34:48Decisions to extend or not
0:34:48 > 0:34:51generally fall into the rental-resale question.
0:34:51 > 0:34:56If you're buying to rent, extending generally isn't worth doing.
0:34:56 > 0:34:58If it's for the resale market, or to be someone's home,
0:34:58 > 0:35:00then it could be beneficial.
0:35:00 > 0:35:02But, overall, this isn't a bad house
0:35:02 > 0:35:05that could, with a reasonable amount of work and money,
0:35:05 > 0:35:07be turned into a lovely one.
0:35:08 > 0:35:11But what does the auctioneer who sold it
0:35:11 > 0:35:15think of this two-bedroom Carlisle house?
0:35:15 > 0:35:18I think the property would serve both the rental market
0:35:18 > 0:35:20and the resale market well.
0:35:20 > 0:35:22If you were preparing for resale,
0:35:22 > 0:35:24you'd want a new kitchen in, a new bathroom,
0:35:24 > 0:35:28new floor coverings, wall coverings, decoration throughout.
0:35:28 > 0:35:31OK, so it clearly needs some work, but what sort of returns
0:35:31 > 0:35:35might you expect from this property that was guided at £40,000?
0:35:35 > 0:35:38I think this property would achieve, in the current market,
0:35:38 > 0:35:44a rental income of £375 per calendar month to £395 per calendar month.
0:35:44 > 0:35:45In the current market,
0:35:45 > 0:35:50this property would probably achieve between £65,000 and £70,000.
0:35:50 > 0:35:53So, as an investment, like the house,
0:35:53 > 0:35:57there's nothing spectacular here but all in all, it's pretty solid.
0:36:01 > 0:36:06So, two bedrooms and not too much to do to sort this place out.
0:36:06 > 0:36:08Good location and a great one,
0:36:08 > 0:36:12especially if you're just starting out in property renovation.
0:36:12 > 0:36:15Let's see who spotted it when it went under the hammer.
0:36:17 > 0:36:20Right, let's move on. Lot number three.
0:36:20 > 0:36:24A two-bedroom end-terraced house in need of modernisation.
0:36:24 > 0:36:28This property would be an ideal investment or first-time buy.
0:36:28 > 0:36:32At £30,000 in the room, someone? 30 I've got.
0:36:32 > 0:36:34At £30,000 I have.
0:36:34 > 0:36:37We're away. I'll take it in ones, nice and easy.
0:36:37 > 0:36:40At 31 . 32 may I see? 33.
0:36:40 > 0:36:43Four, five.
0:36:43 > 0:36:46Six. Thinking about it.
0:36:46 > 0:36:48It's with you at £35,000.
0:36:48 > 0:36:51Are you done? 36, 37.
0:36:51 > 0:36:52Eight.
0:36:54 > 0:36:57Two early for halves. Eight I've got. Nine.
0:36:57 > 0:37:0140. Shaking their heads. With you at £39,000.
0:37:01 > 0:37:03I'll take a half. Half I've got.
0:37:03 > 0:37:0640? And a half? Shake of the head.
0:37:06 > 0:37:08It's with you at 40.
0:37:08 > 0:37:11At £40,000, then.
0:37:11 > 0:37:16You're definitely out. At £40,000, I'm selling this. It's in the room.
0:37:16 > 0:37:19Don't lose it. £40,000.
0:37:19 > 0:37:22First time. At £40,000 second time.
0:37:22 > 0:37:25Third and final time. Selling away.
0:37:25 > 0:37:27Well done, madam.
0:37:27 > 0:37:30Phwoar! Spot on the guide price of 40,000,
0:37:30 > 0:37:32the successful bidder was Jenny.
0:37:32 > 0:37:36She used to run a mail-order company, but recently sold it.
0:37:36 > 0:37:38Now, along with her two sons, Ben and Johnny,
0:37:38 > 0:37:42she's decided to try her hand at property developing.
0:37:42 > 0:37:45She joined me along with her youngest son Johnny
0:37:45 > 0:37:47back at the Carlisle two-bedroomed house.
0:37:47 > 0:37:51- Jenny, Johnny, lovely to meet you both. Congratulations.- Thank you.
0:37:51 > 0:37:53Tell me why you wanted to buy this place.
0:37:53 > 0:37:55Well, we wanted to buy it
0:37:55 > 0:38:00because we've got a couple of other properties that we're renting
0:38:00 > 0:38:04and we were looking for another one to add to the portfolio.
0:38:07 > 0:38:12And this fit our budget, basically, and it's in a reasonable location.
0:38:12 > 0:38:14You've got other properties in this area?
0:38:14 > 0:38:16Yes, we've got a flat just up the road,
0:38:16 > 0:38:19a two-bedroom flat that we're just finishing off
0:38:19 > 0:38:21and a couple of student properties.
0:38:21 > 0:38:25So new to the whole world of being property magnates?
0:38:25 > 0:38:27We are, yes.
0:38:27 > 0:38:28SHE LAUGHS
0:38:28 > 0:38:31Yeah. When did we buy the student houses?
0:38:31 > 0:38:33It came about because after my grandma died,
0:38:33 > 0:38:37we got left the house, the three of us.
0:38:37 > 0:38:38The three of you being...?
0:38:38 > 0:38:41- My brother, my mum and I.- Right.
0:38:41 > 0:38:42And we sold that house
0:38:42 > 0:38:45and used the funds from that to buy the two student houses.
0:38:47 > 0:38:50The student lets they bought were already refurbished
0:38:50 > 0:38:53and the university acts as a letting agent for them,
0:38:53 > 0:38:55so they've been fairly straightforward.
0:38:55 > 0:38:58But though this house is to be a rental property,
0:38:58 > 0:39:00it's unlikely to be a student let.
0:39:00 > 0:39:02It will certainly need some refurbishing,
0:39:02 > 0:39:05so it's a somewhat different proposition.
0:39:05 > 0:39:08- You seem very excited about it.- Yes.
0:39:08 > 0:39:10It's fun to be doing something with my sons.
0:39:10 > 0:39:14Although Benjamin's away working
0:39:14 > 0:39:16and this won't be their job,
0:39:16 > 0:39:20but I've now sold the business that I did run.
0:39:20 > 0:39:22What was that?
0:39:22 > 0:39:24It was a business selling engines
0:39:24 > 0:39:27and parts for radio-controlled model aeroplanes.
0:39:27 > 0:39:30- Wow!- By mail order.- Fantastic.
0:39:30 > 0:39:35Which was a successful business that I started with my late husband,
0:39:35 > 0:39:40- about 20 years ago and we ran it together.- Mail order?- Yes.
0:39:40 > 0:39:43We moved to Cumbria about nine years ago.
0:39:43 > 0:39:46It was a good little business, that I sold to my brother.
0:39:46 > 0:39:51So I will be the one who will be doing most of the work,
0:39:51 > 0:39:54with looking after the properties and so on.
0:39:54 > 0:39:56Johnny, tell me about your involvement.
0:39:56 > 0:40:00My involvement is because we've bought the first few things together,
0:40:00 > 0:40:03we created this partnership between us.
0:40:03 > 0:40:08I come in and do little odd jobs around that need doing.
0:40:08 > 0:40:11I think Mum's got the plan of me knocking in the back wall
0:40:11 > 0:40:16and getting some scrubs on and doing a bit of painting.
0:40:16 > 0:40:19Just odd jobs that we can do to keep the costs down as much as possible.
0:40:19 > 0:40:22So is this going to be your full-time job?
0:40:22 > 0:40:26No, I don't think so, unless things go really badly wrong.
0:40:26 > 0:40:28What you do?
0:40:28 > 0:40:32- I've done a degree in musical theatre.- Wow.- Yeah.
0:40:32 > 0:40:34I'm going to study a masters in that in January.
0:40:34 > 0:40:36What does that mean exactly?
0:40:36 > 0:40:40It means, hopefully, that I'll be performing musically,
0:40:40 > 0:40:42in one way or another, professionally.
0:40:42 > 0:40:45- On stage, singing and dancing?- Yeah.
0:40:45 > 0:40:47Hopefully, that'll be my full-time job
0:40:47 > 0:40:50- and I'll help out as much as I can.- Right.
0:40:50 > 0:40:54So, while Johnny hopes to be standing in the theatre wings
0:40:54 > 0:40:55ready for his big performance,
0:40:55 > 0:40:58Jenny hopes to be gaining her property wings
0:40:58 > 0:41:01with this, her first proper full-scale renovation.
0:41:01 > 0:41:05I think she's chosen quite a tricky house to get her new career off the ground.
0:41:07 > 0:41:09# I'm learning to fly
0:41:09 > 0:41:10# Learning to fly
0:41:10 > 0:41:13# But I ain't got wings... #
0:41:13 > 0:41:16So tell me what you're doing to sort the place out?
0:41:16 > 0:41:19We're going to rip up this wooden floor.
0:41:19 > 0:41:23We're going to knock down the wall in the kitchen
0:41:23 > 0:41:25that leads into the bathroom.
0:41:25 > 0:41:26Move the bathroom upstairs.
0:41:26 > 0:41:29Put a stud wall in the larger of the two bedrooms,
0:41:29 > 0:41:34make a very small landing with doors at right angles,
0:41:34 > 0:41:37so that you don't have to go through a bedroom to get to the bathroom.
0:41:37 > 0:41:40- So what's the budget?- 15,000.- Right.
0:41:40 > 0:41:45- OK, that's a fairly healthy budget. - Yes.- And what kind of timescale?
0:41:45 > 0:41:47Hopefully, a couple of months.
0:41:47 > 0:41:50That sounds like you're going to be hands on. Is that right?
0:41:50 > 0:41:52Yes, very much so.
0:41:52 > 0:41:55Try and keep the cost down as much as possible,
0:41:55 > 0:41:59so I can strip wallpaper and things with the best of them.
0:41:59 > 0:42:04- Um, I even bought a drill. - You did, yeah.
0:42:04 > 0:42:07Wow. That's it, then!
0:42:07 > 0:42:09The whole spirit of DIY.
0:42:09 > 0:42:12- Is this your first drill? - It is my first drill!
0:42:12 > 0:42:15I was very excited about it, actually.
0:42:15 > 0:42:18Well, we'll leave you to get on with your drilling
0:42:18 > 0:42:22- and wish you all the best with it. - Thank you very much.
0:42:22 > 0:42:25And all the best and hopefully see you on the stage in the West End.
0:42:25 > 0:42:26Yeah, I'd like to be.
0:42:26 > 0:42:31So, with power tools in hand, Jenny is ready to start cracking on.
0:42:31 > 0:42:33# I've got the power! #
0:42:33 > 0:42:37Well, from model aircraft to modelling a house -
0:42:37 > 0:42:40Jenny, will she be flying high with this one?
0:42:40 > 0:42:43Well, she's got a drill and she's got Johnny to help her.
0:42:43 > 0:42:47You can find out how this pair got on sorting the house out
0:42:47 > 0:42:48later in the show.
0:42:51 > 0:42:54The day of reckoning has arrived.
0:42:54 > 0:42:56Have those property gambles paid off?
0:42:56 > 0:43:01- Or have our buyers backed the wrong horse?- Let's find out.
0:43:01 > 0:43:03It was in the Lincolnshire town of Gainsborough
0:43:03 > 0:43:06that we came across an old new-build.
0:43:06 > 0:43:10Built in the '90s, this two-bed house was really just a bit dated,
0:43:10 > 0:43:14with dark-brown woodwork and a peachy bathroom.
0:43:14 > 0:43:16But, otherwise, it was pretty sound.
0:43:16 > 0:43:18It did, however, have one unattractive feature
0:43:18 > 0:43:23and that was its position next to an electricity sub-station.
0:43:23 > 0:43:29However, this didn't put local man Wayne off parting with £54,500
0:43:29 > 0:43:32as part of a bit of a spending spree.
0:43:32 > 0:43:36This is one of three, so we're going to be busy, anyway.
0:43:36 > 0:43:39- Why have you bought three?- Timing. It was bad timing, really.
0:43:39 > 0:43:43This came up at auction when I was already purchasing another one.
0:43:43 > 0:43:45# Come together... #
0:43:45 > 0:43:48So all his property purchases had come together.
0:43:48 > 0:43:51But, as Wayne runs a joinery and building business,
0:43:51 > 0:43:55he was confident he could cope with his triple purchases.
0:43:55 > 0:43:59With the Gainsborough house, he hoped he could bring it together in three to four weeks,
0:43:59 > 0:44:02with just a £5,000 budget.
0:44:02 > 0:44:07So has it worked out as planned? Just seven weeks later, we're back.
0:44:09 > 0:44:12Oh, well it might have a new door,
0:44:12 > 0:44:15but it's still fairly brown on the outside.
0:44:15 > 0:44:16What about the inside?
0:44:20 > 0:44:24Wow, the reception room has certainly changed.
0:44:24 > 0:44:25It looks like Wayne has been busy.
0:44:28 > 0:44:32This area of the house, we've had new door frames,
0:44:32 > 0:44:37we've had new laminate floors down, fully decorated.
0:44:37 > 0:44:40We've changed the balustrade on the staircase from the traditional style
0:44:40 > 0:44:44to the more modern, freshly painted, white feature.
0:44:44 > 0:44:47We've got all the windows and radiators gone from the dark stain
0:44:47 > 0:44:50to a nice, new, white freshness.
0:44:50 > 0:44:53We've changed the front door and frame, as well.
0:44:53 > 0:44:56And new laminate floors downstairs, as well.
0:44:56 > 0:45:00So the lounge has been brought up to date, as has the kitchen.
0:45:08 > 0:45:11Basically, in the kitchen area, we've removed all the wall units,
0:45:11 > 0:45:14the base units and the appliances, tiles, etc
0:45:14 > 0:45:16and replaced the full kitchen
0:45:16 > 0:45:21with new base units, wall units and appliances, and retiled,
0:45:21 > 0:45:23and a full decorate to freshen the place up
0:45:23 > 0:45:25with new vinyl flooring as well.
0:45:30 > 0:45:33With the kitchen completely refurbished,
0:45:33 > 0:45:35it was just upstairs that needed to be sorted.
0:45:38 > 0:45:41And that peach bathroom?
0:45:43 > 0:45:46Well, that's a thing of the past.
0:45:48 > 0:45:51And with the two bedrooms redecorated
0:45:51 > 0:45:55and new carpets laid, this house looks like it's ready to rent out.
0:45:55 > 0:45:57Everything's complete now, yeah.
0:45:57 > 0:46:01Everything's finished and we've a tenant moving in tomorrow.
0:46:01 > 0:46:03It's got to be done for then, anyway.
0:46:03 > 0:46:05So, yeah, everything's complete.
0:46:07 > 0:46:08That's great news.
0:46:08 > 0:46:11It's finished and rented out, so clearly its position
0:46:11 > 0:46:15next to the electricity substation hasn't put tenants off.
0:46:17 > 0:46:19I've done a lot of the work.
0:46:19 > 0:46:22I've had a decorator come and decorate with us
0:46:22 > 0:46:27and I've had a plumber to do my bathroom suite and my kitchen sink.
0:46:27 > 0:46:31Despite it being seven weeks since we first visited,
0:46:31 > 0:46:34Wayne got all the work carried out in just over four weeks.
0:46:34 > 0:46:36He's planning on using what he learned here
0:46:36 > 0:46:39on his other property purchases.
0:46:41 > 0:46:44I am, yeah. I think it's come together really well.
0:46:44 > 0:46:47Things have matched up really well.
0:46:47 > 0:46:50It's not dissimilar to the colour scheme we're doing in the next one.
0:46:50 > 0:46:54With the feedback I've had on this one, with the silly things like the feature wallpaper,
0:46:54 > 0:46:58it's the same paper that's going on the next one and so on and so on.
0:46:58 > 0:47:02So Wayne's started to develop a look for his properties
0:47:02 > 0:47:04that not only helps planning and refurbishment,
0:47:04 > 0:47:08but when you have three properties to do at once, you can bulk buy -
0:47:08 > 0:47:10a good way of keeping the costs down.
0:47:10 > 0:47:13My budget was 4,500 to 5,000.
0:47:13 > 0:47:16We're in at £4,920.
0:47:16 > 0:47:20And we're about three days over the time limit I said,
0:47:20 > 0:47:23so I'm happy with three days. I can live with three days.
0:47:24 > 0:47:26Wayne's basically hit his targets.
0:47:26 > 0:47:29With a spend of roughly £5,000,
0:47:29 > 0:47:33plus the purchase price of £54,500,
0:47:33 > 0:47:38his total outlay is just short of £60,000 before costs and expenses.
0:47:38 > 0:47:42So is he on target to make this a profitable investment?
0:47:42 > 0:47:44What do two local estate agents think?
0:47:44 > 0:47:47I think the property has been tastefully refurbished
0:47:47 > 0:47:49in all the right areas - kitchen, bathroom, decoration.
0:47:49 > 0:47:51It's very modern, very contemporary.
0:47:51 > 0:47:54I think the kitchen has been done very well,
0:47:54 > 0:47:56along with the bathroom,
0:47:56 > 0:47:59and just generally a nice standard throughout.
0:48:00 > 0:48:04Wayne prepared this house as a rental and has already got a tenant,
0:48:04 > 0:48:08but how would his investment of around £60,000 fare
0:48:08 > 0:48:10on the resale market?
0:48:10 > 0:48:13In my opinion, I would expect the property to achieve
0:48:13 > 0:48:14somewhere up to £80,000.
0:48:14 > 0:48:17I think the property would, in my opinion,
0:48:17 > 0:48:21achieve around about £80,000 on the open market.
0:48:21 > 0:48:2480,000? Right. I didn't think it would be as much as that.
0:48:24 > 0:48:25Nowhere near, like.
0:48:25 > 0:48:30Probably 10,000, 15,000 over what I thought, so that's really good. Really good.
0:48:30 > 0:48:32Yes, I'm not surprised he's pleased.
0:48:32 > 0:48:36That's a potential pre-tax profit of 20,000
0:48:36 > 0:48:38for just over four weeks' work.
0:48:38 > 0:48:41But first and foremost, rental is the name of the game here.
0:48:41 > 0:48:42On the open rental market,
0:48:42 > 0:48:46I'd expect the property to achieve up to £400 per calendar month.
0:48:46 > 0:48:49Rental, I believe the market would support
0:48:49 > 0:48:51a valuation of around £400 per calendar month.
0:48:51 > 0:48:55Wayne is actually getting £395 per month rent,
0:48:55 > 0:48:59which would net him a healthy yield of just below 8%.
0:48:59 > 0:49:04But is this to be a long-term rental for his rapidly growing portfolio?
0:49:04 > 0:49:07We'll rent it for now. I've got a tenant, like I say, moving in,
0:49:07 > 0:49:09so I'm going to rent it for now.
0:49:09 > 0:49:14But the valuation for sale is a lot more than what I was envisaging.
0:49:14 > 0:49:17I didn't have any plans to sell until he mentioned that.
0:49:17 > 0:49:20Well, that's a pleasant predicament for Wayne to have.
0:49:20 > 0:49:23With this being such a successful project,
0:49:23 > 0:49:26will it make him consider becoming a full-time property developer?
0:49:29 > 0:49:31If they were all like this, I'd do them every day.
0:49:31 > 0:49:34But they're not, unfortunately, always as easy as this one.
0:49:40 > 0:49:43In the Cumbrian town of Carlisle,
0:49:43 > 0:49:46a solid two-bedroom end-of-terrace house came up for auction.
0:49:46 > 0:49:49Although fundamentally sound, there were a few layout issues.
0:49:49 > 0:49:52The downstairs shower room off a sorry little kitchen
0:49:52 > 0:49:55was the only washing facility in the house.
0:49:57 > 0:50:00But for local mother-and-son team Jenny and Johnny,
0:50:00 > 0:50:03it seemed like a good potential investment.
0:50:03 > 0:50:06And despite having other rentals in their portfolio,
0:50:06 > 0:50:10this was their first house that needed some serious renovation.
0:50:10 > 0:50:14As Jenny previously owned a model aeroplane mail order business,
0:50:14 > 0:50:17she may not have had the obvious skills for property renovation,
0:50:17 > 0:50:20but she was certainly willing to give it a go.
0:50:23 > 0:50:28- It sounds like you're going to be hands-on, is that right? - Yes, very much so.
0:50:28 > 0:50:31Try and keep the costs down as much as possible,
0:50:31 > 0:50:34so I can strip wallpaper and things with the best of them.
0:50:34 > 0:50:40- I've even brought a drill. - Yeah, you did.
0:50:40 > 0:50:42- Is this your first drill? - It is my first drill!
0:50:42 > 0:50:45I was very excited about it, actually.
0:50:51 > 0:50:54Jenny bought the house for £40,000
0:50:54 > 0:50:57as a joint venture with her two sons, Johnny and Ben.
0:50:57 > 0:51:02Armed not only with her drill but also with a £15,000 budget,
0:51:02 > 0:51:05she hoped they could turn the place around fairly quickly
0:51:05 > 0:51:07and get it on the rental market.
0:51:08 > 0:51:11Now, two months later, we're back.
0:51:20 > 0:51:23The outside has been given a fresh lick of paint.
0:51:23 > 0:51:26Inside, it's a case of goodbye, 20th century decor,
0:51:26 > 0:51:30hello, contemporary modern living, with those polystyrene tiles
0:51:30 > 0:51:34stripped off, walls replastered and central heating fitted.
0:51:34 > 0:51:37The house has had a thorough upgrade
0:51:37 > 0:51:40and they've also tackled the layout issues.
0:51:44 > 0:51:47So this is the new kitchen area.
0:51:47 > 0:51:51It was probably the biggest project of the entire development.
0:51:51 > 0:51:55It used to be a kitchen and the bathroom was situated in this point.
0:51:55 > 0:51:57About here, there was a huge wall,
0:51:57 > 0:52:00which we actually had to put that beam in,
0:52:00 > 0:52:05and then we just put in entirely new units and new tiles,
0:52:05 > 0:52:09paint job, easy close cupboards.
0:52:09 > 0:52:11Really happy with how it's turned out, really.
0:52:11 > 0:52:15But having removed that washroom from downstairs
0:52:15 > 0:52:18to get that much improved kitchen space...
0:52:20 > 0:52:24..did they manage to get a bathroom upstairs?
0:52:24 > 0:52:27So this was the most difficult part of the project
0:52:27 > 0:52:30because we wanted to move the bathroom upstairs
0:52:30 > 0:52:34and the challenge was how to move the bathroom upstairs
0:52:34 > 0:52:37and still have two good-sized double bedrooms.
0:52:37 > 0:52:40This was the larger of the two bedrooms,
0:52:40 > 0:52:42so it was the logical choice,
0:52:42 > 0:52:45but the position of the bath was difficult
0:52:45 > 0:52:48as we didn't want to make this bedroom too small.
0:52:48 > 0:52:54So, in the end, we managed to use what was effectively a cupboard
0:52:54 > 0:52:56where the old hot water tank was
0:52:56 > 0:52:59to get the bath in that way on
0:52:59 > 0:53:05and still retain a good size double bedroom here.
0:53:05 > 0:53:07So, although quite tight,
0:53:07 > 0:53:10they have successfully got an upstairs bathroom with a bath
0:53:10 > 0:53:15and yet have still crucially retained two bedrooms.
0:53:15 > 0:53:20But moving bathrooms, replastering, rewiring and plumbing was done by tradesmen they employed,
0:53:20 > 0:53:22so what was their involvement?
0:53:22 > 0:53:27- We tried to do all the simple... - ..ish.- ..manual jobs ourselves.
0:53:27 > 0:53:30So we did all the wallpaper stripping,
0:53:30 > 0:53:32which was a mammoth job, wasn't it?
0:53:32 > 0:53:35- All the painting. - It's been a massive learning curve.
0:53:35 > 0:53:37So they both mucked in where they could,
0:53:37 > 0:53:40with Jenny being here most days to oversee the trades.
0:53:40 > 0:53:44Johnny joined her when he could, and they've not only learnt a lot
0:53:44 > 0:53:45but they seem to have had fun doing it.
0:53:47 > 0:53:49I mean, we really have laughed a lot.
0:53:49 > 0:53:51The tiling was probably the day we laughed the most.
0:53:53 > 0:53:58- Because we were so incredibly bad at it and it did look so completely straightforward.- That was so funny.
0:53:58 > 0:54:00And I have tiled before.
0:54:00 > 0:54:03It was so funny because we started early in the morning
0:54:03 > 0:54:06and we got home at lunchtime and we'd done like two rows.
0:54:06 > 0:54:10We were just sat there, like, "We're so useless. It's believable."
0:54:10 > 0:54:13We got there in the end.
0:54:13 > 0:54:15We did get a wall done, the wall that the shower's on,
0:54:15 > 0:54:18the tiles are not quite as even as everywhere else
0:54:18 > 0:54:21- because that's our wall. - SHE LAUGHS
0:54:21 > 0:54:24Well, perhaps their tiling skills may need a little improvement
0:54:24 > 0:54:28but what about those jobs that needed a little bit more power?
0:54:30 > 0:54:35Yes, well, my drill, I used a fair bit, actually. I did.
0:54:35 > 0:54:39I drilled plasterboard to the fireplaces
0:54:39 > 0:54:42and I put the air vents on
0:54:42 > 0:54:46and did a lot of screws and things to take doors off.
0:54:46 > 0:54:48- You got plenty of use out of it, didn't you?- I did.
0:54:48 > 0:54:51So Jenny may now be a dab hand with the drill
0:54:51 > 0:54:55but how big a hole has all the work made in their budget?
0:54:57 > 0:55:01We initially said that we thought it would be about 15,
0:55:01 > 0:55:04and we haven't got all the bills in yet,
0:55:04 > 0:55:07but I think that we're going to be more or less spot on.
0:55:07 > 0:55:11A £15,000 spend on top of their 40,000 purchase price
0:55:11 > 0:55:15will make their total outlay 55,000 before costs and fees.
0:55:15 > 0:55:19So although aimed as a rental property,
0:55:19 > 0:55:21has this been a wise investment?
0:55:21 > 0:55:24What do two local property experts think?
0:55:24 > 0:55:27First impressions of the property, the lounge is a good size,
0:55:27 > 0:55:30it's nice and light and the kitchen is very big and modern.
0:55:30 > 0:55:33They've made a very, very good job.
0:55:33 > 0:55:36What they've done, they've done right.
0:55:36 > 0:55:39They've taken the bathroom upstairs, which is always a plus,
0:55:39 > 0:55:42helps it sell better and it helps it rent better.
0:55:42 > 0:55:44But how much better?
0:55:44 > 0:55:47It cost them £55,000 to get the house into this condition.
0:55:50 > 0:55:53I think you'd probably achieve between 65 and £70,000.
0:55:53 > 0:55:57The resale value of the property would be around £65,000.
0:55:57 > 0:56:00- Yeah, I think we're happy with that, aren't we?- Probably spot on.
0:56:00 > 0:56:02- Really happy.- Great.
0:56:02 > 0:56:04So a potential pre-tax profit
0:56:04 > 0:56:07of between 10 and £15,000 if it was sold on.
0:56:07 > 0:56:11But the plan was always to put it on the rental market.
0:56:11 > 0:56:16I think you would achieve between £375 and £395 per calendar month.
0:56:16 > 0:56:18Rental potential for the property
0:56:18 > 0:56:21would be around £400 per calendar month.
0:56:21 > 0:56:25- That's very good.- Probably spot on what we were thinking ourselves. - Yes.
0:56:25 > 0:56:29Those valuations would generate a yield of between 8% and 9%.
0:56:29 > 0:56:31If she got those figures,
0:56:31 > 0:56:34this will have been a very successful first renovation project
0:56:34 > 0:56:36for Jenny and her sons.
0:56:38 > 0:56:41- Yes, it's been a success, hasn't it? - Definitely.
0:56:41 > 0:56:44It's been an excellent return for a couple of months of hard work
0:56:44 > 0:56:46Yeah, definitely.
0:56:48 > 0:56:51Well, whether you're a full-on property developer
0:56:51 > 0:56:55or a complete novice, join us next time for more auction stories.
0:56:55 > 0:56:58Make sure you tune in then for more Homes Under The Hammer.
0:56:58 > 0:56:59- Goodbye.- Goodbye.
0:57:19 > 0:57:22Subtitles by Red Bee Media Ltd