Episode 30 Homes Under the Hammer


Episode 30

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Transcript


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-Welcome to the programme.

-If you've ever tried to buy a property but been caught in a chain,

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you'll know what a nightmare it can be.

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So, how do you avoid that kind of situation?

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Well, one way to cut through the links in the chain

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is to buy your home under the hammer.

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Well, people go to the auction to buy all sorts of properties

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and they have all kinds of budgets.

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There's an enormous choice available,

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so what did our buyers decide to bid for?

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I have just one verdict on this property in Gillingham, Kent.

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Dated, dated, dated!

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In Maryport, Cumbria, I've made my mind up about this house.

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To be honest, I don't care about the rest of the house, I already love it.

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And in Wiltshire,

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sometimes it's not just plants you can grow in the garden.

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You've got to be a dedicated gardener to chose your roses

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over a rather large chunk of cash.

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All these properties went to 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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Want to live in London,

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but can't afford the astronomical property prices?

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Well, Gillingham in Kent could be the place for you.

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Reaching the capital couldn't be easier, it takes an hour by train,

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and there are also strong road links, should you wish to drive.

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The average property price here is just under £200,000,

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so, you can see why it's a big hit with commuters.

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It's also a very popular area with students,

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with MidKent College nearby,

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an £86 million development which opened two years ago.

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Now with students around,

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there are two things they're bound to need - pubs and accommodation.

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# Everybody's got to learn sometime. #

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So, this area is an ideal buy-to-let opportunity.

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A short walk from the college and the train station

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and I'm here to see today's auction property.

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Now, the catalogue tells me it's in need of some improvement,

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and that is good news, because there could be scope to add value.

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It's here, looks OK from the outside,

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and the guide price, well, that was set at a very reasonable £85-90,000.

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I'm going in.

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This two bedroom, mid-terrace house sounds promising on paper,

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but what about inside?

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Dated, dated, dated!

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Look at this obscured glass, it's rather strange to have it there,

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but it is letting light into the hallway.

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Nevertheless, it's got to go.

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Wallpaper, that's all got to come off, you've got a good-sized lounge,

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but tongue-and-groove everywhere in there.

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It's not quite fitting the modern, 21st-century look, I don't think.

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Polystyrene tiles on the ceiling, the carpets have all got to come up,

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this has all got to go, it needs a complete rethink, this property.

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But the room sizes are good,

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and look at this for the back of the house.

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I think this was an extension that was added on at a later stage.

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A good sized kitchen, although the kitchen's out there,

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I'd like to bring it in here.

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Once you've done those alterations,

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you could have yourself a nice little house here.

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Well, I'm optimistic so far, but what's in store upstairs?

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So, we have two good-sized bedrooms upstairs,

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and we also have, which is good news, a bathroom of a fair size.

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Some rather jazzy pink and black tiles.

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The good thing is we have a cupboard space here,

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we have exactly the same next door,

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and I have seen this done so many times.

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You could create a corridor along here,

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this is all so bedroom number one can access this bathroom

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without having to walk through this bedroom.

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Partition wall here, doorway, so this allows this room

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and that room to have separate access to the bathroom.

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Fantastic, that all works out.

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A bathroom leading off one bedroom is never ideal,

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especially in a student let.

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And check out that design in the bathroom!

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It all depends on what you're going to do with the property.

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If it's a shared one,

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you'll want to move this bathroom to between the two bedrooms,

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but the bottom line is that I think rental is the way forward here.

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Personally, I don't think this house is a short-term money-making machine,

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the resale figures aren't amazing, so I would be inclined

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to take the long-term view and rent this property out.

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Let me show you why.

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Now, I'm going to crunch some numbers here.

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OK, so, a buyer picks this up at auction for,

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let's say £100,000,

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they spend a further ten grand in fees and renovation costs,

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and they secure a rent for £600 a month.

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So, that's 600 x 12,

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that equals £7,200.

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Then you divide that number by the total amount spent,

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in this case, £110,000.

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So, I've done some figures previously,

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now, that comes out at roughly 0.065.

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If you times that by 100,

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you have your figure of 6.5,

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and that is your yield.

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A great return on an investment, I think.

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Those are just my thoughts,

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but what does a local property expert reckon?

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We asked one along to hear his opinion on this place.

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First impressions, nicely surprised,

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it's really, a typical house for this area,

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needing a fairly basic and light renovation.

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This property as a rental would appeal to students and families alike.

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Once the property was renovated, how much could it rent out for?

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I would expect to achieve around £600 per calendar month.

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What if the buyer chose to sell it on?

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When completed, I'd put this house on the market for £120,000.

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Well, you know what I think by now,

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this is a perfect buy-to-let property,

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if you buy at the right price.

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You'll never be short of tenants, and the yield is high.

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It's a no-brainer to me,

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let's see who else fancied this one as we go to auction.

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Start me at 85,000, good value at 85,000.

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Start me at 80 then, at 80,

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80, I'm on the way. 80, I've got.

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With you at £80,000, and 82?

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82. And five?

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85? 85.

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And eight, 88,000.

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90 anywhere?

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90 in a fresh place, 92 it's against you, the 91 I've got, and two, 92?

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You know it's worth it, 92 I've got, and three, and four.

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It's in the room, its 94, it's with you again. 95 if you like now,

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95, and six?

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I've got 96 sitting in a fresh place in the aisle.

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97, it's against both of you 97, he's shaking his head.

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At 96, then, sitting in the aisle right in front of me for the first time.

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At £96,000 for the second, 96 and a half, I'll take once.

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97 it's against you. 97 and a half again?

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97 and a half. And 98?

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98? He says no. 97 and a half then, for the first,

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second, if you're sure you're all done,

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third and final time, £97,500, all done.

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It's yours at 97 and a half.

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And it's Craig who's the happy new owner of the property,

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with his triumphant bid of £97,500.

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He works for a sports distribution company

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whilst taking a break from his Business Studies degree.

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He's based in London, but knows this area well.

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At the age of 23, he's a young investor,

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I met him at the house

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to find out whether he was doing this refurbishment for business or for pleasure.

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Craig, congratulations, lovely to meet you today.

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-And you.

-Well done.

-Thank you.

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I want to know why you wanted to buy this property.

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Well, basically, my dad owns a property in the area as it is,

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and that's a student let,

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and I thought I could replicate that on my own.

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So, is it close to this house?

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-It literally two, two to three roads away, so yeah, five minutes' walk.

-Oh, wow.

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Fantastic, you score points there, because you obviously know the area.

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Yes.

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What about this property?

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Um, good question. To me, it was meant to be,

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because I saved up the deposit,

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and literally, I finished that about a month ago,

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and then, lo and behold, I had a look on the auction,

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and the property came up.

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So I rung up my dad, and he was like, yeah, let's go for it.

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Has it been difficult trying to save that money over such a long period of time?

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Oh, absolutely, with the girlfriend wanting to go on holidays,

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and friends wanting to go out, it's been tempting to tuck into it.

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But, yeah, you've just got to have a lot of self-discipline, and just, yeah.

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Do you have any money left over for the work you need to do here?

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I do, I've got a very tight budget of £5,000,

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and Mum and Dad's bank account if I need it.

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Five grand does sound tight,

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so, what's he going to try and do with that?

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The plan is to move the bathroom into the conservatory room,

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cos at the moment, that's just dead space.

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And then, we're going to juggle the lounge upstairs,

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cos at the moment you have to walk through someone's bedroom

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to get to your room, and that's a no-no.

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So, therefore, we've decided to move the lounge up there instead.

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So, that's the communal area of the house

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and kitchen, bathroom down here.

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-What will this room be?

-This will be a bedroom as well.

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Now, what sort of rental income can you get by doing that?

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Based on what my dad's got round the corner,

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anywhere between £60-£70 per week, per room.

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OK, now, how does that compare with a family let,

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because I've got numerous properties that I do the same thing,

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but a family let to me, you get longevity,

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you get a family that stay in it for quite a long time,

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and you wouldn't have to do so much partitioning and rearranging.

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Have you looked into that?

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Not at the moment, I am open to ideas,

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cos obviously, the project is at its starting point,

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so, yeah, maybe if you visit me again, I might have changed my mind,

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but I will definitely look into it.

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I'm worried that a multiple let will mean more work,

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and let's face it, Craig's five-grand budget will only stretch so far.

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How are you going to manage to do it on such a small budget?

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The good thing is, my mother and father will be living in the property and doing it up.

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My dad's a wizard with DIY,

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he's been doing it ever since he could stand up, basically.

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And, yeah, he basically done his house round the corner,

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so all the work was done there, so, yeah, we're going to save that way.

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And how are your DIY skills?

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You've talked about your dad's, what about yours?

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How much are YOU going to do here?!

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Yeah, they're very basic, to say the least.

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But I'm a quick learner, so hopefully this project will whip me into shape.

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Having such helpful and willing parents

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will save Craig a lot of money in the long run.

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But how long has he given them to do all the work on the property here?

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The deadline is four months' time,

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so, yeah, I've given my mum and dad up until that time to do it.

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And they're really happy,

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because that means my mum and dad can keep busy doing what they do,

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as well as looking at property in the area for themselves.

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Aren't they going to miss their creature comforts?

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I'm sure I can bring them some coffee, or come down on the weekend, keep them company.

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You think that cheeky little smile can get away with everything, don't you?

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Pretty much, it has done so far, so, yes!

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Craig, I'm really excited to see the end product, well done.

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-Thank you.

-Thank you.

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Craig's mum and dad have certainly got their work cut out here,

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and they are working to a tight budget of £5,000.

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Something tells me they may need to dip into their own bank accounts.

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Will Craig manage to turn this house into a four-bed student let,

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or will he take my advice and opt for a family rental?

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You can find out which way he goes later in the programme.

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This is the busy harbour town of Maryport on the coast of Cumbria.

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Once famous for steel production,

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it now thrives on smaller industries,

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and the charming harbour with its bobbing fishing boats

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is also home to a famous blues festival.

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But I hope the property I'm here to see doesn't give ME the blues.

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So, with all that going on and good proximity to the town centre,

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and some good local schools,

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the property I'm here to see sounds like a real find.

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It's on this really interesting corner plot,

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so it's got this nice double aspect, looks in good condition.

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The guide price was just £80,000 for a large, three-bed house.

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Oh, let's have a look.

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From the outside, it looks like a fine, solid property

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over three floors.

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So, I can't help feeling this place has something going for it.

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Not quite sure what I'm going to find, actually -

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given the odd shape - but let's see what there is.

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So, the lounge area there, the bay window is nice,

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it looks to be in, oh, nice features, in good condition.

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And then through here, I am loving this, look at this room,

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a really nice, what would you call this,

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a family living area, I would say.

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You've got this wonderful, old range cooker.

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Unusual ceiling, but a really nice space,

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especially when you consider where it's located,

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it's literally off the kitchen area.

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Again, lots of light flooding into this part of the house,

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obviously it's a bit of an extension at some point, cos it's got this rather unusual ceiling.

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Maybe not ideal,

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but the positives of it are that you get all this light in here, which is fantastic.

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It's a good size.

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It's fairly old and in need of a bit of playing around with, for sure.

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But, all in all, this is fantastic.

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And I love the fact you've got these patio doors

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out onto the little yard area there.

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To be honest, I don't care about the rest of the house, I already love it.

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The space inside makes up for the small garden,

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most of it taken up by this fishpond.

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But on this I'm being a bit KOI, CARPING on about its only negative!

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So, I'll carry on upstairs - while you groan.

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On the way to the first floor there's a small landing with a loo.

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Up the next flight of steps there's a large bedroom,

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flooded with light from its dual-aspect windows.

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Across the landing, there's a smaller room, but with an ensuite toilet and shower.

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And you would really be happy with that,

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in terms of the house finishing there,

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but no, it continues on, up to this extra floor on the top.

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And, it's just little things, as you walk up here,

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you notice that somebody has gone to the trouble, and time,

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and effort, and painstaking...

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oh, whatever, of actually stripping the banisters back,

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the doors have been done as well, I mean, it's just lovely.

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Practicalities, things like you've got double glazing.

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Up here, two bedrooms, one on this side,

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it's got an ensuite as well,

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it's not the most modern, but it's perfectly usable.

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And then back across the landing,

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admiring for a moment the staircase and banister,

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to the last of your bedrooms.

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Interesting little area here, obviously some kind of store area.

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A few issues, you've got these roof supports, the purlins here.

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Could be a bit of an issue, possibly something you bang your head on.

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But I love attic rooms, it's got character,

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it's got lots of light flooding in from the windows,

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things like this lovely fireplace.

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What is there not to like about this house?

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It's one of those classic cases where if you came to see this

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prior to the auction, you would see what an amazing opportunity it is.

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Yes, an opportunity to grab with both hands.

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It's structurally sound, with everything in serviceable condition,

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and space aplenty, all for a guide price of just £80,000.

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For a second opinion, we asked the auctioneer who sold it

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about the pros and cons of this three-bed,

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three-storey house in Maryport.

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I think the positives of this property

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is its proximity to the town centre.

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You wouldn't necessarily need to own a car to either own the property,

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or rent the property.

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It's very easy walking distance to the town centre

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and all its amenities.

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But does the house itself have any drawbacks?

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I think this property does lack a family bathroom,

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and as part of the refurbishment works

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you might want to consider creating a family bathroom.

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So, how do the figures look?

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First, if resold.

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I think if this property was done up,

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I think you'd probably achieve

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a figure in the region of £110,000.

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And what sort of income could you expect if it was let?

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I think you may well achieve a figure in the region of £500 per calendar month.

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Well, in case you haven't guessed it by now,

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I absolutely love this place.

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A really great auction find.

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

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OK, we're going down to Maryport,

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well presented, large, end terrace house,

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anybody start me off at 80?

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70 then? Not going lower,

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I need 70. £70,000 seated.

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At £70,000 we're away.

0:18:240:18:27

Take it in twos, if I may.

0:18:270:18:28

72 anywhere? 72 I've got.

0:18:280:18:31

74?

0:18:310:18:33

76?

0:18:330:18:34

78?

0:18:340:18:36

And 80?

0:18:360:18:38

82?

0:18:380:18:39

84?

0:18:390:18:40

86? 88?

0:18:400:18:43

90?

0:18:430:18:45

92? 94? Shake of the head at 94.

0:18:450:18:49

At £92,000, here, I'll take in ones. 93?

0:18:490:18:54

94. 95?

0:18:540:18:56

Shake of the head at 95.

0:18:560:18:59

At £94,000 in the front.

0:18:590:19:02

At £94,000 then, for the first time.

0:19:020:19:05

At 94 for the second time. Take a half, madam.

0:19:050:19:10

Shake of the head. At £94,000.

0:19:100:19:13

Not quite there, ladies and gentlemen, come and see us afterwards.

0:19:130:19:17

As the reserve price wasn't met at the auction,

0:19:170:19:19

the property didn't sell.

0:19:190:19:21

But it did eventually end up with Pauline and her daughter, Becky,

0:19:210:19:25

two of the original bidders.

0:19:250:19:28

Pauline works at a boarding school,

0:19:280:19:30

while her daughter, Becky, works in a residential home for the elderly.

0:19:300:19:33

I met them at their purchase to find out more.

0:19:330:19:36

-Pauline, Becky, lovely to see you both.

-You too.

0:19:430:19:46

I have to say, I'm a little bit surprised to see you,

0:19:460:19:48

what happened there, cos I didn't think you'd got it?

0:19:480:19:51

Well, we hadn't got it.

0:19:510:19:53

We set ourselves a limit of 92,000,

0:19:530:19:56

and we went to 93, the hammer dropped at 94.

0:19:560:20:00

It didn't meet its reserve,

0:20:000:20:02

the other couple disappeared,

0:20:020:20:04

within ten minutes, the auctioneer's assistant came along to us

0:20:040:20:07

and said would we pay 94,000 for it?

0:20:070:20:09

My husband and I were discussing it and started looking at each other,

0:20:090:20:12

and Becky made the decision.

0:20:120:20:14

Why were you so decisive at that moment?

0:20:140:20:17

No-one could make a decision, so I thought I'll make it for them.

0:20:170:20:20

-We're having it.

-We're having it.

0:20:200:20:22

You'd looked at this, didn't you, initially, and said, "I love it".

0:20:220:20:26

So, just to take a step back, why you wanted to buy it.

0:20:260:20:29

Basically, an investment property.

0:20:290:20:32

We want to rent it out, and have got tenants interested already.

0:20:320:20:36

We hope to turn it over really fast,

0:20:360:20:38

and yeah, my money in the bank was doing nothing much at all.

0:20:380:20:42

-Becky had a little bit of money.

-Yeah.

0:20:420:20:44

-So we decided our first venture, put it together.

-Yeah, first one.

0:20:440:20:47

Let's try it, didn't we?

0:20:470:20:48

For £94,000, I think they've got themselves a good buy-to-let here.

0:20:480:20:54

Pauline and her husband already have two properties they've renovated and currently rent out.

0:20:540:20:59

While for Becky, this is her first project.

0:20:590:21:01

Although they live a 1½-hour drive away,

0:21:040:21:06

they were attracted to Maryport through Becky's partner

0:21:060:21:09

who lives in the area,

0:21:090:21:11

but is that the only reason it caught Becky's eye?

0:21:110:21:14

Just making a bit more money.

0:21:140:21:17

My mum and dad have done it so I thought I might as well give it a go,

0:21:170:21:20

-see what happens.

-She thinks it works.

-Yeah.

0:21:200:21:23

What was it you liked about the house?

0:21:230:21:24

Just the character of it, um, it's quite big itself,

0:21:240:21:28

but also the layout, it's different from many other homes.

0:21:280:21:31

-It's not a boring house, is it?

-No, it's not a boring house.

0:21:310:21:35

What do you do when you're not doing this?

0:21:350:21:38

Well, I work in a boarding house, a school,

0:21:380:21:40

down in Cumbria, further down, I've been there nearly 30 years.

0:21:400:21:45

-Oh, congratulations.

-It's something I've enjoyed doing, and you.

0:21:450:21:48

-I'm a carer for the elderly in a residential home.

-Oh, great, OK.

0:21:480:21:52

Pauline helped put the money up for the purchase,

0:21:520:21:56

but any profits made will be shared between her and Becky.

0:21:560:21:59

As far as the renovation goes, it seems it's going to be a family affair.

0:21:590:22:03

Us two being very amateur, we can paint and that's about it.

0:22:060:22:10

We've got a son who's an electrician, a son who's a plumber.

0:22:100:22:13

-Wow!

-So we're going to use them, aren't we?

0:22:130:22:16

Yes, this one, I think because it didn't want a lot doing to it,

0:22:160:22:21

we thought, let's try it.

0:22:210:22:24

Because it was going up for auction,

0:22:240:22:25

it was going to happen fast for us and that's what we like.

0:22:250:22:28

So tell me what you are going to do to it.

0:22:280:22:30

Initially, we're going to paint through, aren't we?

0:22:300:22:33

-Put a new kitchen in.

-Possibly the kitchen.

0:22:330:22:35

That's going to be the biggest job.

0:22:350:22:37

-On the bathroom issue, there isn't a bathroom per se, is there?

-No.

0:22:370:22:42

-It's a bit...

-There are bathrooms, but they're attached to bedrooms.

0:22:420:22:45

That's it and I think the previous owners had actually

0:22:450:22:48

had the smaller one with the shower room attached to a laundry room.

0:22:480:22:54

Which seemed a good idea at the time but it doesn't, when you look at it,

0:22:540:22:58

that would be the one that I'd do for the bathroom if I was to do it.

0:22:580:23:02

But I think as it is at the moment, for a rental property,

0:23:020:23:06

it's got toilets on each level and it's got everything it needs

0:23:060:23:11

without having to spend a lot of money on a bathroom.

0:23:110:23:14

It's a wise move, because their budget for their planned works

0:23:140:23:17

is only £5,000, so a new bathroom would push it to its limits.

0:23:170:23:22

They want this place earning as soon as possible

0:23:220:23:25

so need to get it turned round in just a month.

0:23:250:23:28

As it's Becky's first project, she's gone for the role

0:23:280:23:32

of head of the decor department, so what's her vision here?

0:23:320:23:36

Just warm, neutral colours.

0:23:380:23:40

I'm going to do the kitchen, try and tie it in with the Aga,

0:23:400:23:45

a bit of a country theme going on

0:23:450:23:47

and then keep the rest of the rooms all natural and neutral.

0:23:470:23:51

Congratulations. You've got yourself a corker.

0:23:510:23:56

-Look forward to seeing how you do whatever you do.

-That's it.

0:23:560:24:00

-Watch this space.

-Yep!

0:24:000:24:01

Well, apart from the pond, nothing fishy about this place whatsoever.

0:24:050:24:09

Just a really good purchase for Pauline and Becky.

0:24:090:24:13

How will they get on sorting it out?

0:24:130:24:14

Not that they're going to do a lot, but find out later in the show.

0:24:140:24:18

Coming up in Wiltshire...

0:24:190:24:21

If renovating an old house doesn't appeal,

0:24:210:24:24

what about taking it a step further

0:24:240:24:26

and buying a plot of land and building your own?

0:24:260:24:29

In Cumbria, it seems that property refurbishment can for some

0:24:290:24:33

be the perfect family pursuit.

0:24:330:24:35

It's a whole team effort and we all enjoy doing it.

0:24:360:24:39

But first, we return to Kent

0:24:400:24:42

to see if property development is a step too far for Craig.

0:24:420:24:45

I just thought, "wow, what have I taken on?" to be honest!

0:24:450:24:49

Earlier in the programme, we were in Gillingham in Kent

0:24:520:24:56

to see this mid-terrace which sold for £97,500.

0:24:560:25:00

It was bought by Craig who is working as a sales coordinator

0:25:000:25:03

for a satellite sports channel

0:25:030:25:05

whilst taking a break from his Business Studies degree.

0:25:050:25:08

With his dad's help, Craig plans to renovate the house

0:25:080:25:12

and let it out to students.

0:25:120:25:14

The plan is to move the bathroom into the conservatory room there.

0:25:140:25:18

At the moment, that's just dead space.

0:25:180:25:20

Then we're going to juggle the lounge upstairs.

0:25:200:25:23

At the moment, you have to walk through someone's bedroom

0:25:230:25:26

to get to your room and that's a no-no.

0:25:260:25:28

-What will this room be?

-This will be a bedroom as well.

0:25:280:25:30

Over four months have passed

0:25:320:25:33

and we've returned to Gillingham to see how Craig is progressing

0:25:330:25:37

with the business of turning this two-bedroomed mid-terraced house

0:25:370:25:40

into the perfect student pad.

0:25:400:25:43

At the back, the garden has been cleared

0:25:450:25:47

and the outside toilet has gone.

0:25:470:25:51

Inside, the extra space has been put to good use.

0:25:510:25:53

A new bathroom has been installed

0:25:550:25:58

and the former kitchen has been transformed

0:25:580:26:01

with new units and appliances.

0:26:010:26:03

Along the hall to the front of the house,

0:26:070:26:10

the living room is now the first of four bedrooms.

0:26:100:26:13

The glass partition wall has gone, as has the fire from the fireplace.

0:26:130:26:18

In the rear living room, the wood panelling has been removed

0:26:190:26:22

and it has become bedroom two, adjacent to the kitchen.

0:26:220:26:26

The kitchen was, believe it or not,

0:26:260:26:28

one of the rooms which didn't need much complex work done to it.

0:26:280:26:31

It was literally gut out the old unit that was there,

0:26:310:26:34

put a new one in.

0:26:340:26:36

The aim of the game was to make it really light and airy

0:26:360:26:38

and I think we've done that really well. It looks great.

0:26:380:26:42

It does, but has Craig managed to achieve the same standard upstairs?

0:26:420:26:45

Now that he's created a brand-new bathroom on the ground floor,

0:26:460:26:50

that funky pink and black bathroom upstairs

0:26:500:26:53

has become bedroom number three and there's now a communal area

0:26:530:26:56

made out of the original back bedroom.

0:26:560:26:59

There's a further bedroom at the front

0:27:010:27:03

which brings the total number of bedrooms to four,

0:27:030:27:05

increasing the property's rental potential.

0:27:050:27:08

But how did Craig find the refurbishment?

0:27:080:27:11

It was a blast from the past. It had everything needing doing to it.

0:27:130:27:16

The walls were a nightmare.

0:27:160:27:19

Every room had a wall that needed doing.

0:27:190:27:21

I just thought, when all the wallpaper was down

0:27:210:27:24

and the plaster was bare, I just thought,

0:27:240:27:27

"wow, what have I taken on?" to be honest.

0:27:270:27:30

Well, it was a mid-terrace that hadn't been touched for years.

0:27:300:27:33

Lots of original features and lots of problems.

0:27:330:27:37

With the help of his mum and dad, the property has been resurrected,

0:27:390:27:42

although they weren't always enthusiastic.

0:27:420:27:46

At first they thought it was a really good investment

0:27:460:27:50

and as time got on, they hated it and hated it.

0:27:500:27:53

Now, they've started to see the light at the end of the tunnel

0:27:530:27:56

and they love it now.

0:27:560:27:58

But at what cost? Did Craig stick to his budget?

0:27:580:28:01

The original budget was 5,000 to 7,000. We ended up spending 5,800.

0:28:020:28:07

There's a few jobs here and there

0:28:070:28:09

so the total spend will come in about six.

0:28:090:28:13

Craig's Business Studies degree course is paying off.

0:28:130:28:17

So, what is his tip?

0:28:170:28:19

The secret is to have a dad that knows all the trades

0:28:190:28:22

and can do all the work.

0:28:220:28:24

My mum and dad are heroes.

0:28:240:28:25

They were living on-site, I was down here every weekend.

0:28:250:28:27

It was a massive slog. We had to do it. That's what keeps costs down.

0:28:270:28:32

That's what you've got to do.

0:28:320:28:34

Time to hear what two local estate agents think of Craig's

0:28:340:28:38

and his mum and dad's hard work.

0:28:380:28:40

I think the four-bedroom configurations works very, very well

0:28:430:28:46

if you're aiming at a room-let market.

0:28:460:28:48

Personally, I think the property has been done to a reasonable standard.

0:28:480:28:52

It's magnolia, it's neutralised, it's bright, clean,

0:28:520:28:55

the ceilings are clean.

0:28:550:28:57

It's very typical of what you see in this kind of property.

0:28:570:29:01

The accommodation is a good size.

0:29:010:29:04

The smallest bedroom is very clearly a single room

0:29:040:29:07

but it works very well as a four-bedroom.

0:29:070:29:10

How much parental income could it produce if let to four students?

0:29:100:29:14

If the property was occupied by four students,

0:29:160:29:19

I'd expect the monthly income

0:29:190:29:21

to be approximately £1,400-£1,500 per calendar month.

0:29:210:29:25

As a student let, I think, over the 12 months,

0:29:250:29:28

you'd achieve around £1,000 a month.

0:29:280:29:30

Craig has already started securing tenants for his property,

0:29:300:29:34

so how much rent are they willing to pay?

0:29:340:29:37

I managed to get £95 a week. The first one is in the door.

0:29:370:29:41

It was off plan, so it wasn't finished.

0:29:410:29:43

I showed them round, told them to use their imagination.

0:29:430:29:46

They saw a couple of rooms, realised it was high-quality and loved it.

0:29:460:29:49

That means the four rooms he is renting out should generate

0:29:490:29:53

an income of £1,520 per calendar month.

0:29:530:29:57

This would give him

0:29:570:29:58

an amazing annual yield of around 17.5% - incredible.

0:29:580:30:04

And with a total investment, not including fees,

0:30:040:30:07

of £103,500, have the changes increased its resale value too?

0:30:070:30:13

I believe I could sell this property on

0:30:130:30:16

for a price in the region of £115-£120,000.

0:30:160:30:20

As an investment property, room lets, students,

0:30:200:30:23

I would expect an astute investor to pay upwards of £145,000.

0:30:230:30:27

Well, those valuations of between 115 and 145,000

0:30:280:30:34

would mean a gross profit of between 11.5 and a whopping £41,500.

0:30:340:30:41

145, wow, that's, that's really impressive.

0:30:420:30:45

The 115, 120, that's more or less what I had valued myself,

0:30:450:30:49

but 145, my dad's going to be really happy with that knowing that

0:30:490:30:53

he's put a lot more value onto it.

0:30:530:30:55

Brilliant. Really happy.

0:30:550:30:56

Craig's confident that he can achieve a high rental income again

0:30:570:31:01

on the next property he buys to convert into student accommodation.

0:31:010:31:06

I know the market. I know a lot of friends that lived in the area.

0:31:060:31:09

I've seen the state of their student houses.

0:31:090:31:11

Therefore, I'm like the inside man in what I know and, erm...

0:31:110:31:14

therefore I can bring, put my own input into it and bring it up

0:31:140:31:18

to what I've done to this one, so hopefully, fingers crossed,

0:31:180:31:21

I can do it to the next and next and next

0:31:210:31:23

and maintain those high rents, but we'll see.

0:31:230:31:26

This is Corsham in North Wiltshire

0:31:320:31:35

and like many of these little historic market towns,

0:31:350:31:37

it's picture-perfect.

0:31:370:31:40

Road links are good too, with Chippenham and Bath

0:31:420:31:45

a few miles away, so it's very practical.

0:31:450:31:48

For some people, the idea of renovating an old property

0:31:500:31:54

and dealing with damp - it strikes fear into their hearts.

0:31:540:31:58

For them, nothing could be nicer than a brand-new home.

0:31:580:32:01

So what about taking it a step further

0:32:010:32:03

and buying a plot of land and building your own?

0:32:030:32:06

Well, that is what we've got today.

0:32:060:32:07

It's land with planning permission for a two-bedroom house

0:32:070:32:11

and a guide of just 40,000.

0:32:110:32:13

Now all I can see right now is this garage.

0:32:130:32:16

So it must be round the back.

0:32:160:32:18

It's a pretty road, just moments from Corsham itself

0:32:220:32:24

but it is busier than I would have liked

0:32:240:32:27

and the factory next door is not exactly quiet.

0:32:270:32:31

As they so often are, the plot was created from next door's garden

0:32:340:32:37

and the access is still through their back gate.

0:32:370:32:40

Hmmm...

0:32:400:32:41

Not very convenient.

0:32:410:32:43

The garden is split down the middle and the house will retain

0:32:460:32:50

its own half of land with this side being developed.

0:32:500:32:53

Now, it's not a very businesslike thing to say, I know, but my first

0:32:530:32:57

thoughts are it's a bit of a shame this all has to go

0:32:570:33:00

because it's just beautiful.

0:33:000:33:02

It's like a little oasis tucked away from the road.

0:33:020:33:05

But let's be honest here,

0:33:050:33:07

you've got to be a dedicated gardener to choose your roses

0:33:070:33:10

over a rather large chunk of cash!

0:33:100:33:13

So, I'm afraid it's goodbye garden, sad, I know,

0:33:180:33:22

but the vendor will still retain a long strip of land for themselves.

0:33:220:33:26

What about plans for the new property? Are they as attractive?

0:33:260:33:29

I'm glad to say the house that's going to be built looks really nice.

0:33:310:33:34

It's in keeping with all the others along the terrace

0:33:340:33:36

and I think one of the bonuses here is it's a nice stand-alone

0:33:360:33:39

detached house.

0:33:390:33:41

It's got an integral garage for parking for two cars

0:33:410:33:44

but I'm going to come back to that a little bit later on.

0:33:440:33:47

Now the floor space downstairs looks quite generous.

0:33:470:33:49

You've got a kitchen going into an open-plan living/dining room.

0:33:490:33:53

You've got two bedrooms upstairs on the first floor, really nice space,

0:33:530:33:57

but you've got to remember you are upstairs in the eaves

0:33:570:34:00

so you will have restricted head height.

0:34:000:34:02

So, overall I would say it's small, but perfectly formed.

0:34:020:34:07

Well, the best things are meant to come in small packages.

0:34:090:34:13

The plans look good and this property has the potential

0:34:130:34:15

to become a very attractive home.

0:34:150:34:18

But back to that garage.

0:34:180:34:21

So, the plans include an integral garage on the ground floor.

0:34:210:34:25

Normally I would question whether this was really necessary

0:34:250:34:28

because I think it can eat into your living space.

0:34:280:34:31

Here, however, it's crucial and was key to getting these plans passed.

0:34:310:34:36

You can see in the drawings that the planners have specified

0:34:360:34:38

there must be two car parking spaces for this property

0:34:380:34:42

and the one next door, whilst keeping a turning circle free

0:34:420:34:45

at the front, which is here for both houses.

0:34:450:34:49

You cannot park in this area.

0:34:490:34:52

Now, that is fine, but whoever buys this plot has

0:34:520:34:54

the responsibility for all of the ground works which, when you

0:34:540:34:57

take into account the demolition of that garage, it could be fiddly

0:34:570:35:01

and expensive and it certainly needs to be added

0:35:010:35:05

to your pre-auction budget.

0:35:050:35:06

Remembering that guide price of 40,000 and with a build cost

0:35:100:35:13

in the region of £80,000, depending on the specification,

0:35:130:35:18

the total spend to build the proposed house would be about 120,000.

0:35:180:35:23

We asked a local estate agent along to tell us what he thinks.

0:35:250:35:28

Looking at the plans, I think they've done a very good job in maximising

0:35:320:35:36

how much accommodation they'd get on to what is a very narrow plot.

0:35:360:35:39

They've done a very good job overall.

0:35:390:35:41

It's crucial they've got off-road parking because

0:35:410:35:44

even though you can park on the road

0:35:440:35:45

at busy times, it's a very busy road and you don't really want to leave your car on there.

0:35:450:35:49

OK, let's talk figures.

0:35:510:35:54

What could this plot achieve on the resale market as it is?

0:35:540:35:57

I think the plot is worth something in the region of £50,000-£55,000.

0:35:590:36:03

And, once the new build is complete, what could the resale value be then?

0:36:050:36:09

A completed, detached two-bed house would be worth

0:36:090:36:12

something in the region of £160,000-£165,000.

0:36:120:36:16

What about the rental market?

0:36:190:36:21

Once completed, I think the property

0:36:210:36:23

would rent for something in the region of £575 per calendar month.

0:36:230:36:26

It's not a totally straightforward plot but, at that guide price,

0:36:270:36:31

you can afford to factor in a few complications.

0:36:310:36:34

And, for somebody who is careful with the pennies,

0:36:340:36:37

this plot could turn you a tidy sum.

0:36:370:36:40

Let's see who swung it at the auction.

0:36:400:36:43

Lot three it is, a little building plot, will you start me,

0:36:470:36:51

£40,000, somebody?

0:36:510:36:53

35, then, OK, at £35,000, lot three,

0:36:530:36:56

that's what I'm selling the building plot at, at 35.

0:36:560:36:58

With detailed planning consent. 36, 37, 38.

0:36:580:37:01

39, OK, at £39,000, over there at £40,000.

0:37:010:37:06

Over there at 41, at two, may I say? 42, I've got it, OK at 42.

0:37:060:37:11

43, 44, 45, 46,

0:37:110:37:15

47, sir. 48. 49, 50,000.

0:37:150:37:20

51, 52, 55.

0:37:210:37:25

If you listen to other people, 56, 57.

0:37:250:37:29

58. 59. 60.

0:37:290:37:34

One. Two.

0:37:340:37:36

61.5? 61.5? 62, to you, sir, and a half again, sir?

0:37:370:37:43

And a half? And three, sir? And a half, 3.5, 64?

0:37:430:37:48

No, 63.5 there, for the first time.

0:37:500:37:52

£63,000 for the second time,

0:37:520:37:54

and 63.5 for the third and last time, are you done at 63.5?

0:37:540:37:59

That successful bid of £63,500 was made by Sue,

0:38:000:38:04

with her partner Terry doing the bidding on her behalf.

0:38:040:38:08

Sue has been looking for somewhere to live locally, but a plot of land?

0:38:090:38:14

I met them on it to discover how this purchase came about.

0:38:140:38:17

-Guys, congratulations. I bet you're really thrilled.

-Quite excited.

0:38:270:38:32

So, I want to know, what's the story behind you buying this plot of land?

0:38:320:38:36

I walked into the estate agents to look at a one-bedroomed cottage

0:38:360:38:41

and it was a real no-no, so I went back to the office

0:38:410:38:44

and I spotted this plot of land up for auction,

0:38:440:38:48

the same day. And I decided on the spot, I'd like to go for this.

0:38:480:38:53

Luckily for Sue, her brother's a chartered surveyor,

0:38:540:38:58

so she asked him for his advice.

0:38:580:39:00

Unfortunately, he didn't receive the legal pack

0:39:000:39:02

in advance of the auction,

0:39:020:39:04

but was able to make a few enquiries and Sue decided to go for it anyway.

0:39:040:39:08

Although she loves the plot,

0:39:080:39:11

she's not so enamoured with the current plans.

0:39:110:39:13

The front door is situated within the garage door.

0:39:130:39:16

They would prefer a walkway leading up to the property

0:39:160:39:19

with the front door on the side.

0:39:190:39:21

But, is there enough space for this?

0:39:210:39:24

Terry was thinking of pushing the property back a little

0:39:240:39:27

and I know my brother is as well.

0:39:270:39:30

How would this house would benefit from that?

0:39:300:39:32

Push it back and I'd rather see a double,

0:39:320:39:34

two storey rather than three-storey and do away with the bottom garage.

0:39:340:39:38

-So you would be happy to park your car not outside your door?

-I would.

0:39:380:39:42

If Sue wishes to make these changes, she'll need to reapply

0:39:450:39:48

for planning permission, which will cost both time and money.

0:39:480:39:52

In this situation, I think if it ain't broke, don't fix it.

0:39:520:39:55

The plans do work and have been approved, so I would leave them be.

0:39:590:40:02

They have a timescale of 18 months

0:40:020:40:04

so there's no heavy pressure for the build to be done quickly.

0:40:040:40:07

-Are you guys planning to live in this house yourselves?

-Well...

-No.

0:40:090:40:13

Oh! Wait a minute! So, a "well", and a "no"!

0:40:130:40:16

So now are you doing this for the sake of a development project?

0:40:160:40:20

-Yes, we're doing this as a business.

-Probably, yes.

0:40:200:40:22

Sue's funding the project from the proceeds of selling her property,

0:40:250:40:28

but do they think there's much profit to be made here?

0:40:280:40:31

If a one-bedroom flat in Corsham is selling for 130,

0:40:330:40:37

she's spent 63 on this up to now and if the build comes to 100,

0:40:370:40:42

that's 163 - houses are selling here for 210 up the road.

0:40:420:40:47

Hmmm, I think those figures are a bit too high.

0:40:490:40:51

More worryingly, Sue's not keen on renting the property out

0:40:510:40:55

due to a bad experience in the past.

0:40:550:40:57

So they don't have a plan B if they can't sell the property on.

0:40:570:41:01

If Sue's intent on reapplying for planning,

0:41:030:41:06

she'll have two add more to her 80,000-£100,000 budget.

0:41:060:41:10

But, her brother and Terry will be working for free,

0:41:100:41:14

which will certainly help.

0:41:140:41:17

I've got to say, it's no laughing matter. She has spent £63,000 here.

0:41:170:41:20

That's your life savings. You've put all the money you have into this.

0:41:200:41:23

This has got to work out for you, Sue.

0:41:230:41:26

It's got to work out,

0:41:260:41:28

so we'll all pull together and make sure it works.

0:41:280:41:30

-Good luck with this.

-Thank you very much.

0:41:300:41:33

And I hope you don't have any problems and it all works out.

0:41:330:41:36

-Thank you, Lucy.

-Thank you so much.

-Cheers, Lucy, thank you.

0:41:360:41:39

I've got to say, I am worried about this project.

0:41:410:41:44

Sue and Terry have taken on a development that's unlikely

0:41:440:41:47

to make any money, at least in the short term.

0:41:470:41:49

And with no plan B,

0:41:490:41:50

it means that my nails are going to be bitten down to the quick.

0:41:500:41:54

You can find out how it all goes later on in the show.

0:41:540:41:57

Well, time has passed. Let's hope that money has been well spent.

0:42:000:42:05

It will be great

0:42:050:42:06

if all those wonderful-sounding plans have worked out.

0:42:060:42:10

Let's go back and find out.

0:42:100:42:11

We head back now to the Cumbrian coastal town of Maryport,

0:42:130:42:19

where mother-and-daughter team, Pauline and Becky,

0:42:190:42:22

bought this imposing three-storey, three-bedroom house for £94,000.

0:42:220:42:27

They didn't make a successful bid in the auction itself,

0:42:270:42:31

as it didn't reach its reserve price, but acquired it afterwards.

0:42:310:42:35

But, while Mum and Dad hummed and hah-ed about it,

0:42:350:42:37

Becky plunged in and took up the offer.

0:42:370:42:40

Why were you so decisive at that moment?

0:42:410:42:43

No-one could make a decision so I thought, I'll make it for them.

0:42:430:42:46

We're having it!

0:42:460:42:48

You'd looked at it with us initially and said, "I love it".

0:42:490:42:53

This was to be daughter Becky's first project,

0:42:530:42:56

and she couldn't have picked a better one to start with.

0:42:560:43:00

Everything was in good condition and full working order.

0:43:000:43:03

All it needed was a bit of freshening up.

0:43:030:43:05

Well, 2½ months later,

0:43:050:43:07

we returned to see if that's what's been achieved.

0:43:070:43:10

Inside, the biggest changes have been made to the kitchen,

0:43:150:43:19

where the tired, outdated units have made way

0:43:190:43:21

for something much more stylish and contemporary.

0:43:210:43:24

Through to the dining room, which has been given a lick of paint

0:43:270:43:30

and some accessories to make it look more homely.

0:43:300:43:34

The main living room is still looking grand,

0:43:350:43:38

but has been dressed to give it a more lived-in feel.

0:43:380:43:40

Becky was unable to be there on the day, but Pauline was on hand

0:43:420:43:45

to show us around, starting with the new kitchen.

0:43:450:43:49

This is the room I'm most pleased with

0:43:500:43:53

and the one we've done most work in, to be honest.

0:43:530:43:56

It was a bit of a mismatch, not a pretty kitchen, and it's not

0:43:560:43:59

a very square sort of kitchen, a lot of difficult angles

0:43:590:44:03

and what have you, but there was a fridge-freezer over there

0:44:030:44:07

which has gone, and some mismatched units round it,

0:44:070:44:10

so we took the whole thing out and put a fresh, white kitchen in

0:44:100:44:14

and I'm very pleased with how it's turned out.

0:44:140:44:17

We finished it off with tiling it and, as I say, I like it very much.

0:44:170:44:21

It's a good addition to the house.

0:44:210:44:23

Upstairs on the middle floor, removing the mirrored wardrobes

0:44:260:44:29

has opened up the main bedroom and revealed a lovely period fireplace.

0:44:290:44:34

And, with the walls redecorated,

0:44:350:44:37

this double-aspect room is just bathed in light.

0:44:370:44:41

Across the landing, there's been little change

0:44:410:44:44

apart from a coat of paint in the shower room.

0:44:440:44:47

On the top floor, a spot of redecoration

0:44:470:44:49

highlighted the period features,

0:44:490:44:51

such as the fireplace and roof beams.

0:44:510:44:54

But that's not all that came to light during the work.

0:44:540:44:57

In here there's been quite a lot of changes, to be honest with you.

0:44:580:45:01

There was a walk-in storage area.

0:45:010:45:03

It was taking up too much room, so we took all that down.

0:45:030:45:07

Once we took that down, we realised there was a damp area there,

0:45:070:45:10

so we addressed that.

0:45:100:45:11

And then we realised further on there was no insulation,

0:45:110:45:14

so it was absolutely freezing, so we addressed that straight away.

0:45:140:45:18

New plasterboard, new roofing, and painted it.

0:45:180:45:22

And as you can see, it turned out really nice

0:45:220:45:25

and I'm really pleased with it.

0:45:250:45:27

That was the only surprise in the whole project.

0:45:270:45:30

Once a roofer fixed the leak,

0:45:300:45:32

Pauline got on with repairing the damage,

0:45:320:45:34

which wasn't straightforward.

0:45:340:45:36

They're not sort of square rooms.

0:45:360:45:38

They're at awful angles, and I remember holding the plasterboard and what have you

0:45:380:45:42

and struggling with my husband. A few choice words came out!

0:45:420:45:46

But yes, we got there, and it's worth it in the end,

0:45:460:45:50

when you look at it, yes.

0:45:500:45:51

The other attic room was freshened up in exactly the same style.

0:45:510:45:56

The changes here have all been for the better,

0:45:560:45:58

and with the carpets cleaned throughout and the electrics and plumbing checking out fine,

0:45:580:46:04

this has been a largely cosmetic exercise apart from the kitchen and attic room.

0:46:040:46:08

Ideal for a first timer.

0:46:080:46:11

Becky, she's been a big part of the project.

0:46:110:46:14

It's been her first project. We've let her take control, if you will, of it.

0:46:140:46:18

She could've soon got carried away with things that she likes

0:46:180:46:20

and colours that she likes and real big changes,

0:46:200:46:23

but we've had to sort of bring her back down to earth a little bit

0:46:230:46:26

and say, you know, it is a rental property. But she's kept it on course,

0:46:260:46:29

So she's been a big part of this project.

0:46:290:46:32

It is always a temptation for first-time developers

0:46:320:46:35

to splash the cash needlessly,

0:46:350:46:37

though fortunately Becky has had Pauline on hand

0:46:370:46:41

to guide her through the pitfalls.

0:46:410:46:43

But it wasn't just down to the pair of them.

0:46:430:46:45

So did other family members help?

0:46:450:46:47

All the family has been in.

0:46:470:46:49

My son's an electrician who's done the electrical work.

0:46:490:46:52

My son that was home from Australia

0:46:520:46:54

actually came and did some of the painting as well.

0:46:540:46:57

And my daughter and myself have done the painting, the decoration,

0:46:570:47:00

the bits of finishing off. The good bits!

0:47:000:47:04

It's all helped to keep their costs down,

0:47:040:47:06

with the spend on this renovation coming in

0:47:060:47:09

under their £5,000 budget at £4,500.

0:47:090:47:13

Add that to the £94,000 purchase price

0:47:150:47:18

and their total outlay is 98,500,

0:47:180:47:21

and it seems they're poised to earn some of that investment back.

0:47:210:47:26

We have got tenants coming in two days' time,

0:47:260:47:30

a lovely family, a Scottish family who want to move to Maryport,

0:47:300:47:34

so yeah, a long-term let.

0:47:340:47:37

That's the plans for it at the moment.

0:47:370:47:39

But have Pauline and Becky got the best out of this house?

0:47:410:47:46

We asked two local property experts

0:47:460:47:48

what they think of this £98,500 investment.

0:47:480:47:53

I'm delighted with the results of this property.

0:47:540:47:56

I think they've brightened it up really well.

0:47:560:47:59

I think the decoration they've carried out

0:47:590:48:01

has made it light and airy.

0:48:010:48:02

The biggest work they've carried out, of course, is in the kitchen area.

0:48:020:48:07

It's now providing a great living space with a dining area

0:48:070:48:10

which flows very well into the kitchen.

0:48:100:48:13

I think it's a fabulous property. Nice big, light, bright, airy family home.

0:48:130:48:19

I really love this kitchen.

0:48:190:48:21

It suits my personal taste

0:48:210:48:22

and I think it's really going to suit a lot of families.

0:48:220:48:25

A really sociable living space.

0:48:250:48:26

So the experts like the improvements.

0:48:280:48:31

But with the property on a long-term let,

0:48:310:48:33

have Pauline and Becky got the best rental return possible here?

0:48:330:48:38

I think if this property was exposed to the rental market,

0:48:380:48:41

you would achieve a figure of around £450 per calendar month.

0:48:410:48:44

Rental-wise, probably in the region of £450 per calendar month.

0:48:440:48:49

Yeah, about what we thought. Yeah, we're happy with that.

0:48:490:48:52

We've actually got a little bit more, 475, on the top end of it.

0:48:520:48:55

That rental income of £475 per calendar month

0:48:550:49:00

would see the pair reap an annual yield of around 6%.

0:49:000:49:03

And if they decide to sell,

0:49:030:49:07

the experts reckon they could achieve between £110,000 and £115,000,

0:49:070:49:10

giving themselves a potential pre-tax profit

0:49:100:49:14

of between 11,500 and 16,500.

0:49:140:49:19

But the plan for now is to have the property earning a steady income

0:49:190:49:23

and keep this as a long-term investment.

0:49:230:49:27

Pauline, Becky and the family are already eyeing up their next move.

0:49:270:49:32

Going to the next option. I think we've got the bug.

0:49:360:49:40

Yeah, we love it, all of us.

0:49:400:49:42

It's a whole team effort, and we all enjoy doing it.

0:49:420:49:46

Earlier in the programme, we were in the Wiltshire town of Corsham,

0:49:510:49:54

where the garden behind this garage was sold as a building plot

0:49:540:49:58

for £63,500.

0:49:580:50:00

It wasn't just the land. There was planning permission to demolish the garage

0:50:010:50:07

and build a three-storey, two-bedroom house.

0:50:070:50:10

It was bought by Sue, and came as a surprise to her partner Terry,

0:50:100:50:14

as she'd originally been seeking something else.

0:50:140:50:18

I walked into the estate agents to look at a one-bedroomed cottage.

0:50:180:50:23

It was a real no-no, so I went back to the office

0:50:230:50:26

and I spotted this plot of land up for auction, the same day.

0:50:260:50:29

And I decided on the spot I'd like to go for this.

0:50:290:50:34

The plans that had been passed required the house to be built in 18 months,

0:50:340:50:39

and stipulated there had to be parking for two cars and a turning area at the front.

0:50:390:50:45

But Terry had a different idea and wanted to resubmit the plans.

0:50:460:50:51

Terry's thinking of pushing the property back a little.

0:50:510:50:55

So how do you think this house would benefit from that?

0:50:550:50:58

Push it back and I'd rather see a double, a two-storey then a three-storey,

0:50:580:51:01

and do away with the bottom garage.

0:51:010:51:03

Well, it's now two years and five months later

0:51:030:51:06

and we've come back to see how things have turned out.

0:51:060:51:11

Well, the garage has been demolished

0:51:130:51:16

and there are signs of some ground work.

0:51:160:51:19

At the back, the garden has been cleared

0:51:210:51:24

and a new fence separates the building plot from the neighbouring property.

0:51:240:51:28

But there's no sign of a house at the front of the plot...

0:51:280:51:33

..or the rear.

0:51:330:51:35

But as Sue explains, there have been some unfortunate delays.

0:51:390:51:43

In the original contract,

0:51:440:51:47

it said that I had to build within 18 months of buying the plot.

0:51:470:51:51

Unfortunately, I became very ill

0:51:510:51:54

and everything was put on hold.

0:51:540:51:58

A new build can be very difficult and challenging at the best of times.

0:51:580:52:02

But Sue's illness meant that this one was an even bigger challenge.

0:52:020:52:08

So what exactly have Sue and Terry managed to do?

0:52:080:52:12

We've put all this fence in along here. We've removed different trees out.

0:52:120:52:17

So we've done quite a bit of ground work ourselves,

0:52:170:52:20

but we had main contractors in to come and clear this double garage.

0:52:200:52:24

They sensibly employed experts to remove it, as it contained asbestos.

0:52:240:52:30

But what about the proposed changes to the plans for the house?

0:52:300:52:34

The plans were changed slightly.

0:52:340:52:37

Not a great deal, because what we did was

0:52:370:52:41

we tried to cut down on the timber,

0:52:410:52:44

the amount of timber in the loft,

0:52:440:52:46

because there was an excessive amount of timber.

0:52:460:52:49

So what we've done is we've installed an A-frame on the plans,

0:52:490:52:53

which cuts down on the costs of the timber.

0:52:530:52:57

But sadly the only timber that's been bought so far

0:52:570:53:01

has been for the fence, and the plot is without that planned A-frame.

0:53:010:53:05

Parking also proved to be an issue,

0:53:050:53:08

as they'd missed the fact that there had to be a turning area at the front.

0:53:080:53:13

That was the main issue,

0:53:130:53:15

but we tried to get that changed and regulated and we couldn't.

0:53:150:53:19

Sue paid £63,500 for the plot.

0:53:260:53:29

Her brother's a surveyor and has helped her with her planning appeals.

0:53:310:53:35

How much has she had to spend?

0:53:350:53:37

Roughly, including buying the plot, it's cost me about 87,000.

0:53:390:53:45

That's a whopping £23,500 on top of the purchase price,

0:53:460:53:51

and still no house to show for it.

0:53:510:53:54

With her ill health

0:53:540:53:56

and the difficulty she's faced trying to amend the plans,

0:53:560:53:59

Sue's now decided to sell the plot on, with the planning permission.

0:53:590:54:04

So how has that gone?

0:54:040:54:06

I've sold it for 62,500, and it's cost me about 87.

0:54:060:54:11

I just fell in love with the plot.

0:54:110:54:13

It's a beautiful plot, and so, you know,

0:54:130:54:17

me and my finer wisdom went ahead,

0:54:170:54:20

much against Terry's better judgement.

0:54:200:54:23

This has been an unhappy venture for Sue, with a loss of £24,500.

0:54:240:54:30

So after this experience,

0:54:300:54:32

what would Terry's advice be to anybody tempted to buy a plot of land?

0:54:320:54:37

You've got to look and make sure you've gone through the plans

0:54:370:54:42

and everything before you buy.

0:54:420:54:44

The small print is very important on a plot.

0:54:440:54:47

That's really good advice.

0:54:470:54:49

But what's the future now for this land?

0:54:490:54:51

We asked two local estate agents to give us their thoughts on the plot,

0:54:510:54:57

first in its current condition.

0:54:570:54:59

In the last 2½ years, a few things have changed,

0:54:590:55:02

but obviously not a lot.

0:55:020:55:04

The garage has come down, the fence has come up,

0:55:040:55:06

but aside from that, it's still as is, really.

0:55:060:55:08

I understand part of the planning provision was that there has to be parking allocated to a neighbour

0:55:080:55:12

as well as turning space. But that will restrict, I think,

0:55:120:55:15

space on the plot. And that won't be for everybody.

0:55:150:55:18

Usually with building plots, they do tend to get on with it

0:55:180:55:20

especially seeing as it's a lot of money involved

0:55:200:55:23

and they'd like to get their money back, ideally. I think it's a difficult plot,

0:55:230:55:26

'but I think it's the best she can do with the actual terrain and the layout of it.'

0:55:260:55:31

How much could the house be worth once it's built?

0:55:310:55:35

Once the property's built, in today's market,

0:55:350:55:38

I would expect it would have sales figure of around £170,000 to £175,000.

0:55:380:55:43

I would see the value being around about £200,000 to £205,000.

0:55:430:55:48

If Sue had continued with the build, there could have been

0:55:490:55:53

some profit here.

0:55:530:55:54

But are they the figures she anticipated?

0:55:540:55:57

I would've thought right from the beginning 205,000 to 210,000,

0:55:570:56:00

because this is Corsham, and that has a premium on it.

0:56:000:56:04

So I'm not surprised.

0:56:040:56:07

What about the current value of the land?

0:56:070:56:10

Is the £62,500 that Sue sold it for in line with market prices?

0:56:100:56:16

I think the building plot at present is worth in the region of £60,000.

0:56:170:56:22

If they were to sell the plot as it is,

0:56:220:56:24

I would see the value being around about £60,000 to £65,000.

0:56:240:56:27

Well, at least she sold at the right price.

0:56:270:56:30

But overall, she still made a substantial loss.

0:56:300:56:34

How does she feel about that?

0:56:340:56:36

I mean, I have lost a lot of money. But hey-ho, you know.

0:56:370:56:41

It's yesterday. Tomorrow's another day.

0:56:420:56:45

Well, that's it for now.

0:56:470:56:49

Did we inspire you or put you off trying it for yourself?

0:56:490:56:53

We'll have more properties for you next time on Homes Under The Hammer.

0:56:530:56:56

-We'll see you then.

-Goodbye.

0:56:560:56:58

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0:57:190:57:21

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