0:00:01 > 0:00:02Hello, and welcome to the show.
0:00:02 > 0:00:04Now, investing in bricks and mortar
0:00:04 > 0:00:07has long been considered a wise move.
0:00:07 > 0:00:09Even in these difficult times.
0:00:09 > 0:00:12And that's because, over the years, as long as you buy sensibly,
0:00:12 > 0:00:16property has usually shown rock solid returns.
0:00:16 > 0:00:19So, where can you find some of these potential nest eggs?
0:00:19 > 0:00:20Well, at an auction, of course!
0:00:45 > 0:00:47Whether you're buying property as an investment
0:00:47 > 0:00:49or because you just want to live in it,
0:00:49 > 0:00:52you still want somewhere that represents a good deal.
0:00:52 > 0:00:55So, did the buyers on today's show manage that?
0:00:55 > 0:00:57Well, here's what they bought.
0:00:58 > 0:01:01In Nottinghamshire, this may look like an ordinary house
0:01:01 > 0:01:05but how about if I could show you a way of getting a house
0:01:05 > 0:01:07for virtually free?
0:01:08 > 0:01:11Whereas in Penge, southeast London,
0:01:11 > 0:01:15is there no end to the delights of this four-bedroom property?
0:01:15 > 0:01:17This place goes on for ever!
0:01:19 > 0:01:21And in Newcastle-under-Lyme, in Staffordshire,
0:01:21 > 0:01:24there's more mess than stress with this house.
0:01:24 > 0:01:28I'm not seeing anything that's worrying me so far.
0:01:30 > 0:01:32All of these properties went to auction.
0:01:32 > 0:01:34We'll find out who bought them and what they paid
0:01:34 > 0:01:36when they went under the hammer.
0:01:42 > 0:01:44This is Mansfield, the largest town in Nottinghamshire
0:01:44 > 0:01:48and centre of the historic Sherwood Forest.
0:01:50 > 0:01:51The property I'm going to see
0:01:51 > 0:01:54is under ten minutes' drive from the centre of town.
0:01:54 > 0:01:58Don't let this busy street put you off
0:01:58 > 0:02:01because there is a hidden gem behind these trees.
0:02:01 > 0:02:06Well, this is generally regarded as the most desirable part of town
0:02:06 > 0:02:08and you can see why - big, tree-lined street.
0:02:08 > 0:02:10The fact that I'm not walking along a road,
0:02:10 > 0:02:13I'm walking along a driveway to the property
0:02:13 > 0:02:17should give you a clue that this ain't no ordinary house.
0:02:17 > 0:02:21In fact, it's a four-bedroom detached property
0:02:21 > 0:02:25at a guide price which seems pretty low, considering what it is.
0:02:25 > 0:02:27225,000 quid -
0:02:27 > 0:02:30so I'm really excited to look inside!
0:02:32 > 0:02:33Walking up to the front door
0:02:33 > 0:02:37you start to get a glimpse of what else this place has to offer.
0:02:37 > 0:02:40Outside space and a great deal of it!
0:02:41 > 0:02:44Not only do you get a driveway and a double garage,
0:02:44 > 0:02:47but there are plenty of outbuildings and a shed.
0:02:49 > 0:02:50So far I'm very impressed.
0:02:52 > 0:02:54Very, very exciting indeed, is this!
0:02:54 > 0:02:57What are we going to find? It's gorgeous outside. Inside?
0:02:57 > 0:03:00Well, yeah, nice enough entrance.
0:03:00 > 0:03:03In fact, I'm already getting the feeling this is one of those houses
0:03:03 > 0:03:08that harks back, in some ways, to the grand days of property
0:03:08 > 0:03:12where you had big entrances for the sake of it, to create a statement.
0:03:12 > 0:03:15And off it, slightly smaller rooms, I have to say.
0:03:15 > 0:03:16There's a front sitting room there
0:03:16 > 0:03:19and a smaller, sort of, dining room area, there,
0:03:19 > 0:03:22and then through into a second front sitting room.
0:03:22 > 0:03:24Now, I love the fact you've got these two big bay windows,
0:03:24 > 0:03:25you've got a nice fireplace
0:03:25 > 0:03:29and some original features, which is good to have,
0:03:29 > 0:03:32but why do you need two sitting rooms?
0:03:33 > 0:03:37Could be trying to be a little bit grander than there's room for.
0:03:39 > 0:03:41# Too many rooms
0:03:43 > 0:03:46# Big, old, empty eyes... #
0:03:49 > 0:03:52Still, these two front living rooms have some nice features.
0:03:53 > 0:03:56The house also has central heating
0:03:56 > 0:03:59and most of the windows are double glazed.
0:03:59 > 0:04:02Moving towards the back of the ground floor
0:04:02 > 0:04:05there is a small WC under the stairs.
0:04:05 > 0:04:09Then you go past the dining room, which is next to the kitchen.
0:04:10 > 0:04:13So, through to the kitchen
0:04:13 > 0:04:17and the only real disappointment, for me, in this property.
0:04:17 > 0:04:20As you can see, it's fairly dark, it's not exactly big
0:04:20 > 0:04:22and it's just isn't what it should be,
0:04:22 > 0:04:25which is, if you like, the heart of the house.
0:04:25 > 0:04:29And it just compounds this whole thing of lots of little rooms, which just isn't working.
0:04:29 > 0:04:32So, is there a solution? Well, I think there is.
0:04:32 > 0:04:37Now, it's a fairly messy solution, but I think it's worth it
0:04:37 > 0:04:40because, really, if you take out this wall,
0:04:40 > 0:04:44which divides the kitchen here with that little dining room to the side,
0:04:44 > 0:04:49you've suddenly created one big open plan kitchen/dining area
0:04:49 > 0:04:51but you've also given the house that, sort of, central heart,
0:04:51 > 0:04:52which it's missing.
0:04:52 > 0:04:54In order to take this out,
0:04:54 > 0:04:56one thing you don't do is start hitting it with a sledgehammer
0:04:56 > 0:04:59cos it's pivotal to the support of the whole house.
0:04:59 > 0:05:04You are going to have to get a builder to look at putting RSJ supporting beams across the top.
0:05:04 > 0:05:08So it's going to be messy, it's probably going to be quite expensive,
0:05:08 > 0:05:11but I think it is the one thing you should be doing with this property.
0:05:11 > 0:05:15That would be a great improvement to the ground floor,
0:05:15 > 0:05:21and the good news is that there isn't a massive amount of work to do elsewhere down here.
0:05:21 > 0:05:24That continues upstairs on a split-level landing,
0:05:24 > 0:05:26with two fair-size double bedrooms,
0:05:26 > 0:05:30a slightly smaller third bedroom,
0:05:30 > 0:05:32and a single fourth bedroom.
0:05:34 > 0:05:39There's also a box room that could be used as a study.
0:05:39 > 0:05:43The bathroom is actually in quite good condition, but,
0:05:43 > 0:05:47like the rest of the house, could go from just useable to beautiful,
0:05:47 > 0:05:50with a bit of time and money spent on it.
0:05:50 > 0:05:53Well, one of the really nice things about the property is it comes with
0:05:53 > 0:05:57this really good-size mature garden, with all these lovely trees,
0:05:57 > 0:06:01But how about if I could show you a way of getting the house for virtually free?
0:06:01 > 0:06:05Have you noticed next door there is already a new build?
0:06:05 > 0:06:08So how about turning this into a building plot?
0:06:08 > 0:06:13A five-bedroom detached house in this area can fetch £450,000
0:06:13 > 0:06:17so, keeping that figure in mind, let's do the sums.
0:06:17 > 0:06:23Say you bought the existing house and land for around the guide price of 225,000
0:06:23 > 0:06:27and spent about 150,000 building a five-bed house on the garden plot.
0:06:27 > 0:06:30That's a total of around £375,000.
0:06:30 > 0:06:36If you sold the new build alone for 450,000 - bada-boom! -
0:06:36 > 0:06:39you've made your bill and purchase costs back.
0:06:39 > 0:06:42So, effectively, you'd get the old house for free,
0:06:42 > 0:06:46plus you'd have money left over to renovate it from your profit.
0:06:47 > 0:06:51And don't forget that there's potential to extend, too.
0:06:51 > 0:06:54Of course, it's vital to factor in the risk of
0:06:54 > 0:06:57whether you would get planning permission.
0:06:57 > 0:07:00Time to find out what a local estate agent thinks.
0:07:00 > 0:07:03I particularly like the plot and the location,
0:07:03 > 0:07:06it's very private here, and there is potential for further development,
0:07:06 > 0:07:08subject to planning requirements.
0:07:08 > 0:07:12Just need to be mindful of how much the house could ultimately be worth,
0:07:12 > 0:07:14once it has been extended, though.
0:07:14 > 0:07:17What about the house itself?
0:07:17 > 0:07:20How much could it be worth after it was fully renovated?
0:07:20 > 0:07:22Once renovated,
0:07:22 > 0:07:26I could see this property achieving in the region of 400 to £450,000.
0:07:26 > 0:07:28Is letting an option here?
0:07:28 > 0:07:30There is a strong rental market.
0:07:30 > 0:07:34Rental value - I would anticipate £1,500 per calendar month.
0:07:34 > 0:07:37Well, the house is undeniably great,
0:07:37 > 0:07:39and it would make a superb family home,
0:07:39 > 0:07:44but it is the outside space that's got me most excited.
0:07:44 > 0:07:47There is literally so much you can do here.
0:07:47 > 0:07:50Let's see who was equally enthralled by the possibilities
0:07:50 > 0:07:52when it went under the hammer.
0:07:52 > 0:07:54Lot 68 -
0:07:54 > 0:07:58a very fine and individual four-bedroom detached house.
0:07:58 > 0:08:01Start me on this where you will, ladies and gentlemen.
0:08:01 > 0:08:05225, then, the guide price? 225? Thank you. 225,000.
0:08:05 > 0:08:08227? 227.
0:08:08 > 0:08:11227. 229? 229.
0:08:11 > 0:08:15229. 230? 230. 231?
0:08:15 > 0:08:18232? 233?
0:08:18 > 0:08:20234.
0:08:20 > 0:08:22235, 236,
0:08:22 > 0:08:25237, 238.
0:08:25 > 0:08:27239.
0:08:28 > 0:08:30240?
0:08:30 > 0:08:31239, 240.
0:08:31 > 0:08:34241?
0:08:34 > 0:08:36241, 42?
0:08:36 > 0:08:37243?
0:08:39 > 0:08:40243.
0:08:40 > 0:08:4344? 244.
0:08:43 > 0:08:44245.
0:08:44 > 0:08:47245, 246.
0:08:47 > 0:08:50247.
0:08:50 > 0:08:51248?
0:08:51 > 0:08:52248.
0:08:52 > 0:08:54249?
0:08:54 > 0:08:57249? Try another one - 250?
0:08:57 > 0:09:00249 and a half, I'll take it. 250?
0:09:00 > 0:09:04At 250, 500 again?
0:09:04 > 0:09:07At £250,000 for the first time...
0:09:07 > 0:09:11At £250,000 for the second time...
0:09:11 > 0:09:13Third and last opportunity... All done with it?
0:09:13 > 0:09:15We're selling at 250,000...
0:09:17 > 0:09:19Sold at £250,000.
0:09:19 > 0:09:25That successful bid of 250,000 was made by IT consultant Alan.
0:09:25 > 0:09:29Alan bought the house with his wife Lisa who's originally from Japan
0:09:29 > 0:09:32and a full-time mum to their daughter Hannah.
0:09:32 > 0:09:37I met them back at their new purchase to hear about the plans.
0:09:40 > 0:09:44- Alan, Lisa, lovely to meet you both. Congratulations.- BOTH: Thank you.
0:09:44 > 0:09:46Tell me why you wanted to buy this house.
0:09:46 > 0:09:48We're living in a bungalow at the moment
0:09:48 > 0:09:50and it's a bit small with Hannah.
0:09:50 > 0:09:53So, yeah, just a bit more space, really.
0:09:53 > 0:09:56So this is going to be a place for you to live?
0:09:56 > 0:09:58- That's right.- Wow! It'll make a wonderful family home.
0:09:58 > 0:10:01Tell me about how you got to know about it
0:10:01 > 0:10:04and what you thought when you first saw it.
0:10:04 > 0:10:09- We'd been looking for house for nearly one year, don't we?- Yeah.
0:10:09 > 0:10:13Yeah, I saw this was auction. I thought, "I have to have a look."
0:10:13 > 0:10:15What did you think when you first saw it?
0:10:15 > 0:10:17Well, I thought, "Great!!
0:10:17 > 0:10:22Its garden is a good size, house itself is, you know, four bedrooms.
0:10:22 > 0:10:27We looked at a lot of new houses and they've all got the small gardens
0:10:27 > 0:10:31and, yeah, it was nice to find somewhere a bit different.
0:10:31 > 0:10:32And how was the auction?
0:10:32 > 0:10:36Well, I didn't go because I have to look after Hannah,
0:10:36 > 0:10:42but Alan's mum went and I asked her to control him!
0:10:42 > 0:10:43PAUL LAUGHS
0:10:43 > 0:10:47Yeah, we don't want to pay too much, so make sure he doesn't overpay.
0:10:47 > 0:10:50Right. Well, were you happy when you heard the result?
0:10:50 > 0:10:56Oh, yes, absolutely. I was shaking when I received text message.
0:10:56 > 0:11:00So, the first time at auction was a great success for Alan.
0:11:00 > 0:11:03He and Lisa have picked up a fantastic property
0:11:03 > 0:11:05to make into their new family home.
0:11:05 > 0:11:08They plan to stay in their current house
0:11:08 > 0:11:12until the work here is complete, hopefully in three to four months.
0:11:12 > 0:11:16Tell me what you're going to do to it to sort it out.
0:11:16 > 0:11:21There's the kitchen and the room next to it - I'm not sure if it's a dining room or what it is, really -
0:11:21 > 0:11:26but we thought we'd knock those through into one, needs a lick of paint, obviously,
0:11:26 > 0:11:30new carpets, redecorating, probably a few alterations to the bathroom.
0:11:30 > 0:11:34Any plans for an extension or a conservatory or anything like that?
0:11:34 > 0:11:38I think that would be sort of phase two, but in the short term,
0:11:38 > 0:11:40I think just repaint it, really.
0:11:41 > 0:11:46As it is, the house is certainly big enough for a family of three.
0:11:46 > 0:11:50Despite having enough land to consider developing on,
0:11:50 > 0:11:53Alan and Lisa just want to enjoy the garden as a garden
0:11:53 > 0:11:54with their daughter Hannah.
0:11:54 > 0:11:58# Blowing bubbles, blowing bubbles
0:11:58 > 0:12:04# Blowing bubbles Blowing bubbles. #
0:12:05 > 0:12:08I'm happy to hear they plan to open up this kitchen
0:12:08 > 0:12:11and just hope they've got the budget for such a big job.
0:12:11 > 0:12:14In terms of budget for the works you're going to do,
0:12:14 > 0:12:16tell me how much you think you might spend.
0:12:16 > 0:12:20I hope that we don't spend more than 50,000. Hopefully a lot less.
0:12:20 > 0:12:24Well, congratulations anyway and I look forward to seeing how you go and turn it into a family home.
0:12:24 > 0:12:26- Great, thanks very much.- Thank you.
0:12:30 > 0:12:35Well, Alan and Lisa are clearly delighted with their new home,
0:12:35 > 0:12:36and who can blame them?
0:12:36 > 0:12:40They've got a big budget. How are they going to spend it?
0:12:40 > 0:12:42You can find out later in the show.
0:12:45 > 0:12:50This is Penge in south-east London, an area seven miles from Charing Cross station
0:12:50 > 0:12:54and full of attractive Victorian houses.
0:12:54 > 0:12:59The property I'm here to see is at the Beckenham end of Penge which,
0:12:59 > 0:13:04although further away from central London, well, it's closer to
0:13:04 > 0:13:07the more desirable, family-friendly part of the area,
0:13:07 > 0:13:09so I'm happy with that.
0:13:09 > 0:13:12That's good news, particularly as the property I'm here to see
0:13:12 > 0:13:17is a family-sized house which had a guide price of £260,000.
0:13:19 > 0:13:22First impressions - well, I really like it.
0:13:22 > 0:13:24It obviously needs significant work,
0:13:24 > 0:13:26the roof looks like it could do with some attention,
0:13:26 > 0:13:30the windows are rotten in places and the render's cracking.
0:13:30 > 0:13:36But you can't deny this handsome four-bedroom house has its charms.
0:13:36 > 0:13:38Well, it's been so neglected on the outside,
0:13:38 > 0:13:42you really hope that there'll be some beautiful,
0:13:42 > 0:13:45lovely, old features still intact on the inside.
0:13:45 > 0:13:49I'm glad to say there are loads! It's absolutely amazing in here.
0:13:49 > 0:13:53It's pretty dark and oppressive.
0:13:53 > 0:13:56You've got this very brown wallpaper, although it's beautiful.
0:13:56 > 0:13:58Looks like it's 1940s, stunning.
0:13:58 > 0:14:01You've got a huge room here, beautiful old windows.
0:14:01 > 0:14:05You've got a lovely ceiling, stunning staircase. Look at this -
0:14:05 > 0:14:09a nice turn there, lovely old spindles.
0:14:09 > 0:14:12So much character. And there is so much you can do with this,
0:14:12 > 0:14:14AND this place goes on for ever!
0:14:14 > 0:14:20You've got the longest corridor here, a second reception room and a, hm, kitchen.
0:14:20 > 0:14:24It's obvious this house needs a complete rejig.
0:14:24 > 0:14:27Look at all these beautiful features behind me.
0:14:27 > 0:14:29It's really not what I was expecting.
0:14:29 > 0:14:32It really doesn't mirror the image of the exterior.
0:14:32 > 0:14:35Nice big reception room at the back. Here's the light.
0:14:35 > 0:14:37There's a garden there.
0:14:37 > 0:14:41I think what you'd have to do would be think about potentially
0:14:41 > 0:14:46taking this wall down, opening up the space, a lovely big kitchen,
0:14:46 > 0:14:48you can have a dining area over here,
0:14:48 > 0:14:50doors leading out to the garden.
0:14:50 > 0:14:53It's great! I can't wait to explore further.
0:14:53 > 0:14:56The garden isn't huge and, from here,
0:14:56 > 0:15:00you can see that extensive work is needed at the back -
0:15:00 > 0:15:04new guttering and pipework and yet more windows to replace.
0:15:04 > 0:15:08But, sensitively done, I think this house could be a stunner.
0:15:08 > 0:15:12Upstairs at the rear is the first of the bedrooms
0:15:12 > 0:15:15and, beside it, is a very, very small second bedroom.
0:15:15 > 0:15:19Well, that's the smallest bedroom upstairs, but it does have
0:15:19 > 0:15:23the only original fireplace in the house and it's beautiful.
0:15:23 > 0:15:25Quite a small bathroom there,
0:15:25 > 0:15:28you've got a toilet there, but what I'm thinking is,
0:15:28 > 0:15:30how about an ensuite bathroom?
0:15:30 > 0:15:34That little room is so tiny, it might be worth adding
0:15:34 > 0:15:36a really nice ensuite to the bedroom the back,
0:15:36 > 0:15:40although whoever takes this property on might want to use it as a nursery,
0:15:40 > 0:15:42so it depends how you want to live.
0:15:42 > 0:15:45Lovely bedroom there, good-size double but - ha-ha! -
0:15:45 > 0:15:49that pales into insignificance when you walk into this room.
0:15:49 > 0:15:52Look at it! Absolutely amazing.
0:15:52 > 0:15:56Spacious, you've got a lovely open brick fireplace here,
0:15:56 > 0:15:57lots of room for storage,
0:15:57 > 0:16:02the big double bed could go at the end, and this gorgeous bay window.
0:16:02 > 0:16:03You know what?
0:16:03 > 0:16:08I've just paid an absolute fortune for original, lovely, ornate handles like this.
0:16:08 > 0:16:09They're stunning.
0:16:09 > 0:16:15Something that does worry me, though, is THAT - an almighty crack.
0:16:15 > 0:16:18Is this bay window area dropping?
0:16:18 > 0:16:23I really would get that looked at, because that could be quite a costly exercise.
0:16:23 > 0:16:28But, apart from that, this bedroom - what a corker!
0:16:28 > 0:16:31This really is a beauty of a bedroom -
0:16:31 > 0:16:36spacious and bright, but the bay window could be a bit of a headache.
0:16:36 > 0:16:40# I'm just looking out of this old broke window
0:16:40 > 0:16:44# And she's taking a turn... #
0:16:44 > 0:16:48Now it's time to be less sentimental about this wonderful property
0:16:48 > 0:16:50and put my developer's hat on.
0:16:50 > 0:16:55This house does need the works - ripping out and starting again.
0:16:55 > 0:16:57So, while you've got it back to brick,
0:16:57 > 0:17:00how about converting this property into two flats?
0:17:00 > 0:17:05There's space, you could probably get two one-beds out of it,
0:17:05 > 0:17:09and there are a number of other subdivided properties along this road.
0:17:09 > 0:17:13But do your maths. Would it add up? I'm not sure it would.
0:17:13 > 0:17:14And, more than that,
0:17:14 > 0:17:18wouldn't it be heartbreaking to carve up this lovely old home?
0:17:18 > 0:17:22For once, I think sense and sentiment are along the same lines.
0:17:22 > 0:17:27Developing is no place to let your heart rule your head, but
0:17:27 > 0:17:31thankfully, I think it makes sense to keep this place as one dwelling.
0:17:31 > 0:17:35Bearing in mind that guide price of 260,000,
0:17:35 > 0:17:37does a local property expert agree?
0:17:37 > 0:17:40Well, the house is fantastic. It's got bundles of period features.
0:17:40 > 0:17:43Obviously needs updating on the standard things like electric,
0:17:43 > 0:17:46plumbings, the bathroom, kitchen.
0:17:46 > 0:17:48But, after you've done those things,
0:17:48 > 0:17:51there's not a lot more to do except decorate and do cosmetics.
0:17:51 > 0:17:54The period features are fantastic, the doors are original,
0:17:54 > 0:17:57the architraves, the dadoes, the ceilings. It's fantastic.
0:17:57 > 0:18:02So, if this was refurbished from top to bottom as a family home,
0:18:02 > 0:18:04what sale price could it achieve?
0:18:04 > 0:18:07I think once the property's fully renovated,
0:18:07 > 0:18:11it would achieve somewhere between 350,000 and 375,000.
0:18:11 > 0:18:15What could it hope to earn as a rental?
0:18:15 > 0:18:17Looking at the property as one family dwelling,
0:18:17 > 0:18:20I believe it would rent around the £1,800 per calendar month mark.
0:18:20 > 0:18:25It's lots like this that remind me why I just love the auction room.
0:18:25 > 0:18:28A house that's been trapped in time,
0:18:28 > 0:18:31just waiting for a new owner to raise their hand
0:18:31 > 0:18:35and transform it into somewhere that you can enjoy once more.
0:18:35 > 0:18:40Romantic? Well, maybe, but this house has got so much more to give.
0:18:40 > 0:18:42I wonder who agreed at the auction.
0:18:46 > 0:18:48Good-sized four-bed mid-terraced house.
0:18:48 > 0:18:50Who'd like to kick off on this?
0:18:50 > 0:18:53250? Not going to go below 250.
0:18:53 > 0:18:55250 standing up. 250?
0:18:55 > 0:18:59255? 255. 255.
0:18:59 > 0:19:02260? 265?
0:19:02 > 0:19:04SHE MOUTHS
0:19:04 > 0:19:08262. 265?
0:19:08 > 0:19:10266?
0:19:10 > 0:19:13267. 268? 268.
0:19:13 > 0:19:16269. 270?
0:19:16 > 0:19:21270. 275, yes? Just a nod. 275.
0:19:21 > 0:19:242...76?
0:19:24 > 0:19:26277. 280?
0:19:26 > 0:19:29Another five? 280.
0:19:29 > 0:19:30281?
0:19:30 > 0:19:32- SHE MOUTHS - Yeah? 282?
0:19:32 > 0:19:34283?
0:19:34 > 0:19:36Yeah? 284?
0:19:36 > 0:19:40New spot, 284. 285?
0:19:40 > 0:19:43- SHE MOUTHS - Yeah? 285.
0:19:43 > 0:19:44286?
0:19:45 > 0:19:48285, looking for 286.
0:19:48 > 0:19:51If not, 285, first time...
0:19:51 > 0:19:53Second time...
0:19:53 > 0:19:56Third and last time... Have you all done?
0:19:56 > 0:19:59You owe me a bottle of champagne. 285.
0:19:59 > 0:20:03And that slightly unsure-looking final bid of 285,000
0:20:03 > 0:20:05was placed by Gertie.
0:20:05 > 0:20:08She's spent the last 20 years bringing up her children
0:20:08 > 0:20:11and being a lady who lunches.
0:20:11 > 0:20:15A year ago, she started her own property-developing business
0:20:15 > 0:20:19and I met her back at this Penge palace to hear what she had in store for it.
0:20:19 > 0:20:24Gertie, it's so nice to meet you. What a surprise this house is!
0:20:24 > 0:20:27You just don't think it's going to look or feel like this
0:20:27 > 0:20:29when you first open the front door.
0:20:29 > 0:20:34Yes, it looks awful from the outside, but it is a wonderful, big house when you go in there.
0:20:34 > 0:20:37So tell me, what are you doing?
0:20:37 > 0:20:40Well, I'm turning this house into a house of multiple occupancy.
0:20:40 > 0:20:44I will rent this out, high standard of accommodation,
0:20:44 > 0:20:47all-inclusive, and I will let it out to young professionals.
0:20:47 > 0:20:50How many rooms are you going to be letting?
0:20:50 > 0:20:55I will be getting four double ensuites and two single ensuites.
0:20:55 > 0:20:58And how much do you let them for? What sort of price tag do you put on them?
0:20:58 > 0:21:03Well, the average double ensuite, I usually get £150 a week.
0:21:03 > 0:21:07- Wow!- A single ensuite is £130 a week.
0:21:07 > 0:21:10So if I was letting this probably as a single unit,
0:21:10 > 0:21:13I probably would get probably 1,600 rent,
0:21:13 > 0:21:15but as a per-room, it's so much more.
0:21:15 > 0:21:19Gertie hasn't let her heart rule her head here.
0:21:19 > 0:21:25Doing the maths, she could get nearly £3,500 a month letting it out to six professionals,
0:21:25 > 0:21:27if she manages to fill the rooms.
0:21:27 > 0:21:31Gertie only started out in property one year ago,
0:21:31 > 0:21:36so what was it that gave her the insight into the earning potential of properties?
0:21:36 > 0:21:40It was through a property franchise that I learned all about this model.
0:21:40 > 0:21:43I learned everything from the buying to the developing.
0:21:43 > 0:21:47You sort of signed up for a five-year programme and they basically
0:21:47 > 0:21:51teach you everything and give you a lot of support at all times.
0:21:51 > 0:21:53And you have to pay for that?
0:21:53 > 0:21:55Yes, we do. We pay to join the franchise.
0:21:55 > 0:22:01- Do they invest in the house?- No, no. The house is mine. I own the house.
0:22:01 > 0:22:07They get a share of some of our income as part of the ongoing support that they give us.
0:22:07 > 0:22:11Interesting. Though it's perhaps not a model to suit everyone.
0:22:11 > 0:22:15For some, five years might seem a long time to be locked into such a deal,
0:22:15 > 0:22:18where 5% of the profit is paid to the property company.
0:22:18 > 0:22:24But for the more nervous investor, looking for advice and contacts in the business,
0:22:24 > 0:22:25I can see the appeal.
0:22:25 > 0:22:27And what about her budget?
0:22:27 > 0:22:31I would expect to spend about £80,000 to get this up and running.
0:22:31 > 0:22:35So how long is it going to take you to get your rooms sorted?
0:22:35 > 0:22:38I would say between six and seven months.
0:22:38 > 0:22:41Gertie, do you like the direction your life has now gone in?
0:22:41 > 0:22:44Are you happy being property developer extraordinaire?
0:22:44 > 0:22:47Yes, it's been a great journey for me and I still have loads to learn,
0:22:47 > 0:22:51but I know it's the right thing for me at this time in my life.
0:22:51 > 0:22:53I have exactly a purpose now.
0:22:53 > 0:22:57Gertie, I'm so excited for you. I can't wait see the outcome. Congratulations.
0:22:57 > 0:22:59- Thank you very much.- Thank you.
0:23:02 > 0:23:06So, Gertie is clearly not going to get emotional about the property
0:23:06 > 0:23:08and start mourning the cornicing.
0:23:08 > 0:23:10Sorry, old house,
0:23:10 > 0:23:13your time has come to enter the 21st century in a big way.
0:23:13 > 0:23:16But her investment model is interesting
0:23:16 > 0:23:18and I'm so keen to see how she gets on.
0:23:18 > 0:23:23You can find out how it all goes later in the programme.
0:23:23 > 0:23:27Coming up, in Staffordshire, the inside of this house is fine,
0:23:27 > 0:23:29but is there anything to worry about outside?
0:23:29 > 0:23:32Nope. Another added bonus.
0:23:34 > 0:23:36Back in Penge, south-east London,
0:23:36 > 0:23:39Gertie's definitely got that property-developing bug.
0:23:39 > 0:23:44I never thought I would say this but actually I'm now looking for something similar.
0:23:44 > 0:23:50But first, how did Alan and Lisa get on turning this house into their home?
0:23:50 > 0:23:53It's been a bit stressful at times, but then at the end, it's worth it.
0:23:58 > 0:24:02Earlier in the programme, we were in Mansfield, Nottinghamshire,
0:24:02 > 0:24:09where this imposing four-bedroom detached property was bought for £250,000 by Alan and his wife Lisa.
0:24:09 > 0:24:13IT consultant Alan was born and bred in Mansfield,
0:24:13 > 0:24:14and Lisa is from Japan.
0:24:14 > 0:24:18The couple plan to move in and make it a home for them
0:24:18 > 0:24:20and their daughter Hannah.
0:24:21 > 0:24:25The house had taken some time to find.
0:24:25 > 0:24:29- We'd been looking for house for nearly one year, don't we?- Yeah.
0:24:29 > 0:24:31What did you think when you first saw it?
0:24:31 > 0:24:35Well, I thought, "Great!" Its garden is a good size.
0:24:35 > 0:24:39We looked at a lot of new houses and they've all got the small gardens,
0:24:39 > 0:24:43and, yeah, it was nice to find somewhere a bit different, really.
0:24:43 > 0:24:46So when we returned eight months later,
0:24:46 > 0:24:49had they changed it into their home?
0:24:50 > 0:24:53Well, the outside now has solar panels
0:24:53 > 0:24:57and French doors leading out onto that fantastic garden.
0:25:00 > 0:25:03And inside, one of the living rooms
0:25:03 > 0:25:07has been turned into a playroom for Hannah. Much more fun!
0:25:10 > 0:25:12With the carpet removed,
0:25:12 > 0:25:15the old parquet flooring has been given a new lease of life,
0:25:17 > 0:25:21while the other living room has more of a grown-up feel about it,
0:25:21 > 0:25:26and still retains a number of original features.
0:25:26 > 0:25:30But what about that rather sorry kitchen area?
0:25:31 > 0:25:37Well, it's now a great open plan kitchen/diner for all the family.
0:25:43 > 0:25:48So here we had a supporting wall between the kitchen and what's now the dining room,
0:25:48 > 0:25:52so we had to obviously take the brickwork out,
0:25:52 > 0:25:56there was a chimney breast that had to come out.
0:25:56 > 0:26:00There was a lot of work to knock the two rooms together, but I think
0:26:00 > 0:26:04it's worth it because it just makes a nice sort of family space.
0:26:04 > 0:26:08And the family is set to grow as Lisa is expecting their second child.
0:26:11 > 0:26:16There's certainly plenty of room in this house for one more.
0:26:16 > 0:26:18The four bedrooms upstairs have all been decorated
0:26:18 > 0:26:21and some of the original wardrobes have been retained.
0:26:26 > 0:26:29And there's a useful office in the fourth bedroom.
0:26:30 > 0:26:33In Hannah's room, everything looks new
0:26:33 > 0:26:35and Alan's been busy lending a hand.
0:26:35 > 0:26:39We had people do most of the work for us
0:26:39 > 0:26:43but I did some little bits, like Hannah's floor, putting up the blinds.
0:26:43 > 0:26:45Although other people do most of the work,
0:26:45 > 0:26:49you've still got to do the sort of management of it,
0:26:49 > 0:26:53so it could take up a lot of time and be a bit stressful at times,
0:26:53 > 0:26:55but then at the end, it's worth it.
0:26:55 > 0:26:59They had hoped to leave the original bathroom suite
0:26:59 > 0:27:01and just change the shower,
0:27:01 > 0:27:05but they discovered the bath had been painted and was peeling,
0:27:05 > 0:27:07so they have a new bath on order.
0:27:07 > 0:27:10And, of course, there's another new arrival pending.
0:27:10 > 0:27:13Yeah, three weeks' time, the baby's coming.
0:27:13 > 0:27:16I don't know which one, boy or girl, but, yeah, it's coming,
0:27:16 > 0:27:21so we can play all in the garden together, and can use the slide.
0:27:21 > 0:27:24She's got bikes and scooters.
0:27:25 > 0:27:28Come on, pedal, pedal!
0:27:28 > 0:27:32Alan and Lisa decided against extending at present.
0:27:32 > 0:27:34That's for the future, maybe.
0:27:34 > 0:27:38And, thinking of all our futures, Alan's gone green.
0:27:38 > 0:27:44We went for the solar panels because energy prices are very expensive and, you know,
0:27:44 > 0:27:48we need to save energy, try and get the carbon footprint down a bit,
0:27:48 > 0:27:53so we thought they were a good investment and sort of good, green thing to do, really.
0:27:53 > 0:27:56They stuck with their decision not to sell the garden plot
0:27:56 > 0:27:59as there's no need to extend at the moment.
0:27:59 > 0:28:02So, how did they get on with their £50,000 budget?
0:28:02 > 0:28:05We added up all the major items we could think of
0:28:05 > 0:28:10and we came to a bit under 50,000, so quite pleased with that.
0:28:10 > 0:28:14With a £250,000 purchase price,
0:28:14 > 0:28:18that takes their total outlay to around £300,000.
0:28:20 > 0:28:25We invited two local estate agents to come and give their opinions.
0:28:25 > 0:28:28'Some very good improvement work, particularly the kitchen.'
0:28:28 > 0:28:30It's a very light and spacious house.
0:28:30 > 0:28:35I know they've done considerable work on the electrics, plumbing, etc.
0:28:35 > 0:28:39The improvements carried out by the current owners have been done
0:28:39 > 0:28:42to a very good standard and they've made the best use of space.
0:28:42 > 0:28:45It's nice that the parquet flooring in the sitting room has been retained
0:28:45 > 0:28:49and they've made a very good job of restoring it and bringing it back to its former glory.
0:28:49 > 0:28:54Alan and Lisa have no intention of letting this.
0:28:54 > 0:28:59It's their family home. But what income could the property generate?
0:28:59 > 0:29:02With regard to the rental value, I could see it achieving
0:29:02 > 0:29:06in the region of 1,000 to £1,200 per calendar month.
0:29:06 > 0:29:09I would expect a monthly rent somewhere in the region of
0:29:09 > 0:29:10£1,500 per calendar month.
0:29:10 > 0:29:14Sounds like a lot. We're not going to rent it, so...
0:29:14 > 0:29:17But, yeah, it's interesting, yeah.
0:29:17 > 0:29:20What about the sale value of the house?
0:29:20 > 0:29:24Is it worth more than the £300,000 they've invested here?
0:29:24 > 0:29:28In the current market, I would look to offer it for sale
0:29:28 > 0:29:31somewhere in the region of 350 to £370,000.
0:29:31 > 0:29:33In its current condition,
0:29:33 > 0:29:37I think the property's worth in the region of 350 to £375,000.
0:29:37 > 0:29:41So, there's a potential gross profit of 50 to £75,000
0:29:41 > 0:29:43before the usual expenses.
0:29:45 > 0:29:48I don't mind too much what it's worth because, you know,
0:29:48 > 0:29:50we're not planning to move any time soon,
0:29:50 > 0:29:53but it's nice to know that the money's well spent
0:29:53 > 0:29:56and we've not been wasting our time, so, yeah, that's nice.
0:29:58 > 0:30:02Both estate agents agree the value could increase to 425,000
0:30:02 > 0:30:04if an extension was added.
0:30:04 > 0:30:08So, that's something to think about in the years ahead.
0:30:09 > 0:30:14But in the short term, what's next on the agenda for the couple?
0:30:14 > 0:30:18Well, most immediately - little brother or sister for Hannah,
0:30:18 > 0:30:20and, beyond that...
0:30:20 > 0:30:25- Well, I don't know. We expect to be here a long time, I think.- Yeah.
0:30:25 > 0:30:26Oh, there she is!
0:30:36 > 0:30:42Today, I'm in Clayton, a suburb of Newcastle-under-Lyme in Staffordshire.
0:30:42 > 0:30:45Well, one famous resident here was Clarice Cliff,
0:30:45 > 0:30:48the famous potter and ceramic artist,
0:30:48 > 0:30:53and she used to live in this cottage at the top of this lane here.
0:30:53 > 0:30:57# Just tea for two and two for tea... #
0:30:57 > 0:31:01I love pottering around, but there's no time for tea today.
0:31:01 > 0:31:04I need to get to the property I've come to visit.
0:31:04 > 0:31:07Well, not far from Northwood Lane
0:31:07 > 0:31:10and its historic cottages is the property I'm here to see today.
0:31:10 > 0:31:15Towards the lower end of the average price for properties around here,
0:31:15 > 0:31:18it was guided at £60,000 plus.
0:31:18 > 0:31:21It's an ex-local authority mid-terrace.
0:31:21 > 0:31:23Let's take a look inside.
0:31:23 > 0:31:25Well, the outside, either front or back,
0:31:25 > 0:31:28isn't going to win any beauty contests,
0:31:28 > 0:31:31but new windows and doors would certainly help.
0:31:31 > 0:31:34So, two bedrooms and what else? Let's find out.
0:31:34 > 0:31:38Straight through the front door and how strange is that?
0:31:38 > 0:31:40You're facing a room which I can't quite figure out what it is.
0:31:40 > 0:31:44In the distance, the kitchen, but there's this kind of middle room!
0:31:44 > 0:31:47Definitely do something with that. Into this lounge...
0:31:47 > 0:31:51I really like that it's a double aspect. Basically, you've got front and back,
0:31:51 > 0:31:52lots of light flooding through.
0:31:52 > 0:31:56It's the full depth of the property. That's really nice to see.
0:31:56 > 0:31:58One thing which isn't nice to see is the windows.
0:31:58 > 0:32:01They're called Crittall windows. They're metal.
0:32:01 > 0:32:04Somebody's put this secondary double-glazing on the top of it,
0:32:04 > 0:32:08but these things are notoriously draughty, cold, whatever.
0:32:08 > 0:32:11Need to be replaced. You can't even paint them very easily
0:32:11 > 0:32:14cos they're actually made of galvanised metal.
0:32:14 > 0:32:16You need special paint. So forget that.
0:32:16 > 0:32:19While you're at it, you need to replace this horrible old gas fire.
0:32:19 > 0:32:23But, as I said, I love the size of the room and it feels solid.
0:32:23 > 0:32:26In fact, the whole house feels really solid. That's the kitchen.
0:32:26 > 0:32:30Again, needs a complete refurbishment but, you know what?
0:32:30 > 0:32:32I'm not seeing anything that's worrying me so far.
0:32:32 > 0:32:38# Don't worry about a thing
0:32:38 > 0:32:43# Cos every little thing is gonna be all right... #
0:32:43 > 0:32:47Cosmetically, this house looks a mess and I've seen a spot of damp.
0:32:47 > 0:32:50But there's nothing that looks too hard to tackle.
0:32:50 > 0:32:54When it comes to renovations, you'd expect to put in a new kitchen and bathroom,
0:32:54 > 0:32:59and redecorate anyway, and perhaps replace both windows and doors.
0:32:59 > 0:33:01But tick off these basics
0:33:01 > 0:33:05and this house looks as sound as a pound to me, from inside, at least.
0:33:05 > 0:33:10# Don't worry about a thing... #
0:33:10 > 0:33:15Well, at the rear of the property there's no doubt that it does look a bit shoddy.
0:33:15 > 0:33:16But is it anything to worry about?
0:33:16 > 0:33:19Let's look for anything that causes us concern.
0:33:19 > 0:33:22Any structural issues, any cracks that are obvious? No.
0:33:22 > 0:33:26Look around the windows. Anything cracking underneath those or at the sides? No.
0:33:26 > 0:33:30What about the roof? It's got lots of moss on it which means it's fairly old,
0:33:30 > 0:33:32but I can't see any tiles have slipped.
0:33:32 > 0:33:36I do notice that one of the ridge tiles could do with a bit of re-pointing,
0:33:36 > 0:33:39so a bit of preventative care there would be money well spent.
0:33:39 > 0:33:41But in terms of structure? No, that's fine.
0:33:41 > 0:33:45You're going to replace the windows anyway, maybe repaint the outside.
0:33:45 > 0:33:49Nothing to worry about. In terms of the garden, a real nice surprise.
0:33:49 > 0:33:52It's big, obviously a bit overgrown, but you've got lots of places
0:33:52 > 0:33:55to put things like kids' stuff, maybe a shed here,
0:33:55 > 0:33:56whatever you like.
0:33:56 > 0:33:59So, all in all, nope. Another added bonus.
0:33:59 > 0:34:02# Don't judge a book by its cover
0:34:02 > 0:34:04# Oh, yeah! #
0:34:04 > 0:34:09I am really encouraged by this cosmetically-challenged two-bed.
0:34:09 > 0:34:14I can see this as a very rewarding project in terms of a refurbishment
0:34:14 > 0:34:17but could it also be a financially-rewarding one?
0:34:17 > 0:34:20What does a local estate agent think?
0:34:23 > 0:34:27Positives of this property are that it's a very good area,
0:34:27 > 0:34:29it's a cul-de-sac location.
0:34:29 > 0:34:32It's nice and quiet, there's a garden,
0:34:32 > 0:34:37and there's a lot here for somebody to get their teeth stuck into.
0:34:37 > 0:34:41This is certainly a property that could be greatly improved.
0:34:41 > 0:34:44But, bearing in mind that £60,000 guide price,
0:34:44 > 0:34:47would it be worth putting in the effort?
0:34:47 > 0:34:53Once renovated, we would suggest an asking price of £99,950.
0:34:53 > 0:34:55For the rental market,
0:34:55 > 0:35:00you would be looking at around about £450 per calendar month.
0:35:00 > 0:35:03Not only am I encouraged by the potential of the house,
0:35:03 > 0:35:08it seems the figures are encouraging as well.
0:35:08 > 0:35:15Well, hopefully you've been listening to what I've been saying over the years on the show
0:35:15 > 0:35:19to know whether this is a good property to go for not.
0:35:19 > 0:35:20Is it? Is it not?
0:35:20 > 0:35:24Come on. Not going to spend too much money sorting it out,
0:35:24 > 0:35:27good rental opportunity, solid house - bang!
0:35:27 > 0:35:30Let's see who bought it when it went to the auction.
0:35:34 > 0:35:35Right - lot 24,
0:35:35 > 0:35:40a two-bedroom midtown house in need of modernisation and improvement.
0:35:40 > 0:35:4350, can I say to start? 50, you're in at 50.
0:35:43 > 0:35:44I'll go in twos, then.
0:35:44 > 0:35:4652? 52.
0:35:46 > 0:35:4754?
0:35:47 > 0:35:52At 54,000... £55,000.
0:35:52 > 0:35:54At 55, 56?
0:35:54 > 0:35:5657? £58,000.
0:35:56 > 0:35:5859?
0:35:58 > 0:36:0059.
0:36:00 > 0:36:0260? £60,000.
0:36:02 > 0:36:06I'll go for your half now, sir. Yep, 60 and a half. 61?
0:36:08 > 0:36:1061 and a half. 62.
0:36:10 > 0:36:1462 and a half. 63.
0:36:14 > 0:36:1863 and a half. 64.
0:36:18 > 0:36:20Yep, 64 and a half.
0:36:20 > 0:36:2465? 65. 65 and a half?
0:36:24 > 0:36:2666? 66 and a half?
0:36:26 > 0:36:2967. 67 and a half?
0:36:29 > 0:36:3168. 68 and a half?
0:36:31 > 0:36:3569. 69 and a half?
0:36:35 > 0:36:3770, madam?
0:36:37 > 0:36:41Yep, 70. Are you sure?
0:36:41 > 0:36:44Still with you, madam. £70,000, your bid, no mistakes.
0:36:44 > 0:36:47£70,000, the lady's bid seated.
0:36:47 > 0:36:49First time at 70...
0:36:49 > 0:36:51Second time at 70...
0:36:51 > 0:36:54Third and final time at £70,000..
0:36:54 > 0:36:56Are we all done?
0:36:56 > 0:36:58Your lot, madam. Well done.
0:36:58 > 0:37:01So, for £70,000 - that's £10,000 above the guide price -
0:37:01 > 0:37:06the new owners of the two-bed terraced house near Newcastle-under-Lyme
0:37:06 > 0:37:08are local couple Margaret and John.
0:37:08 > 0:37:11John's a retired chemistry professor,
0:37:11 > 0:37:14while Margaret's a retired music teacher
0:37:14 > 0:37:17and still teaches the piano on a regular basis.
0:37:20 > 0:37:23- John, Margaret, lovely to meet you both.- Lovely to meet you, too.
0:37:23 > 0:37:26Congratulations. Tell me why you wanted to buy this place.
0:37:26 > 0:37:28Well, it was flagged up by our daughter-in-law
0:37:28 > 0:37:32as being a property that looked as though it was a good price.
0:37:32 > 0:37:34Why didn't we go and have a look at it?
0:37:34 > 0:37:38I came to look and I thought it's a lovely little street.
0:37:38 > 0:37:40All the other houses are well cared for.
0:37:40 > 0:37:43I mean, obviously, very, very neglected, but nothing,
0:37:43 > 0:37:46I feel, that can't be put right and it's a neat project.
0:37:46 > 0:37:50It's not a project that is going to overstretch us too much, I hope.
0:37:50 > 0:37:54- Yeah, no major structural issues, stuff like that.- No, hope not.
0:37:54 > 0:37:58Why now, then, John? What's the driving force to do it at this point now?
0:37:58 > 0:38:01- Oh, I think it's me.- You?
0:38:01 > 0:38:02LAUGHTER
0:38:02 > 0:38:06I think I felt I wanted a little project and... So, yeah, this is it.
0:38:06 > 0:38:08# This is it (this is it)
0:38:08 > 0:38:11# Oh, this time I know it's the real thing... #
0:38:11 > 0:38:15So, this, indeed, is it and it's quite a decent project,
0:38:15 > 0:38:17with a fair amount of work.
0:38:17 > 0:38:22But, together, I'm sure they're more than capable of sorting most things out.
0:38:22 > 0:38:25So, tell me about you two. How long have you been together?
0:38:25 > 0:38:28- 50 years and a bit.- That's a good old stint.- Yes.- It is these days!
0:38:28 > 0:38:30LAUGHTER
0:38:30 > 0:38:33We had our golden wedding anniversary last year.
0:38:33 > 0:38:34Oh, congratulations!
0:38:34 > 0:38:38- And Margaret's wedding dress was in the hall as everybody came in.- No!
0:38:38 > 0:38:41Yes, I thought, "I've kept this wedding dress for 50 years.
0:38:41 > 0:38:43"I'm having it in the hall."
0:38:43 > 0:38:49# Thank you for the days
0:38:49 > 0:38:52# Those endless days, those sacred days you gave me... #
0:38:52 > 0:38:57It seems this house hasn't worn quite as well as Margaret's wedding dress
0:38:57 > 0:39:00and has definitely seen better days.
0:39:00 > 0:39:04So I'm hoping their plans are to bring it a bit more up-to-date.
0:39:04 > 0:39:06So tell me what you're going to do to sort the place out.
0:39:06 > 0:39:10I think the first thing is get everything out that has to be taken out,
0:39:10 > 0:39:13and I'm thinking we probably need the garden...
0:39:13 > 0:39:16Everything that needs to come out of the garden
0:39:16 > 0:39:20I think has got to come through the house, so that's number one.
0:39:20 > 0:39:22We've had our guy Dominic, who's fantastic,
0:39:22 > 0:39:25come to look at the kitchen and bathroom,
0:39:25 > 0:39:28and he's given me lots of advice about things.
0:39:28 > 0:39:30What's he said so far?
0:39:30 > 0:39:34His advice is, because of this dampness in this wall,
0:39:34 > 0:39:36get everything that's going out, out,
0:39:36 > 0:39:39so that you get rid of as much of that smell as possible.
0:39:39 > 0:39:44And windows - I've had somebody come and look at the windows.
0:39:44 > 0:39:48And also we'd be turning this into a patio door, so we can all sit out there.
0:39:48 > 0:39:52- Oh, great!- Yeah, just open it out into the garden a bit, which,
0:39:52 > 0:39:54hopefully, will look a bit greener than does now.
0:39:54 > 0:39:56So what's the budget?
0:39:56 > 0:39:59Well, I'm thinking 15, if we can keep it to 15.
0:39:59 > 0:40:02So how much of the work will other people be doing
0:40:02 > 0:40:04and how much will you be getting involved?
0:40:04 > 0:40:08Ooh, I think we're very keen to have a go but, you know,
0:40:08 > 0:40:12it's how much energy and time have we got?
0:40:12 > 0:40:14It strikes me you've got quite a lot of both.
0:40:14 > 0:40:17Yes. We're capable of doing quite a bit,
0:40:17 > 0:40:19but, when it comes to the crunch,
0:40:19 > 0:40:22we might say, "Hmm, might be good to get the decorator in."
0:40:23 > 0:40:27Well, listen, congratulations. Lovely to meet you both.
0:40:27 > 0:40:30- I look forward to seeing how you get on.- Thank you very much for your interest.
0:40:39 > 0:40:41Well, piano teacher Margaret
0:40:41 > 0:40:44and husband John have chosen a fine piece here.
0:40:44 > 0:40:48No strings attached, just a bit fine-tuning required.
0:40:48 > 0:40:51Will it build to a crescendo or fall flat?
0:40:51 > 0:40:54You can find out later in the show.
0:40:56 > 0:41:00So, have our buyers lived up to their promises?
0:41:00 > 0:41:04Has all the work that was planned been carried out? Let's find out.
0:41:04 > 0:41:09If you're looking for decent transport links into the centre of London
0:41:09 > 0:41:12and reasonably affordable property prices,
0:41:12 > 0:41:15then Penge in the south-east of the city might just fit the bill.
0:41:15 > 0:41:19That's what fledgling developer Gertie thought when she bought this four-bed Victorian terraced house
0:41:19 > 0:41:23at auction for 285,000.
0:41:27 > 0:41:31Although this property was somewhat dilapidated,
0:41:31 > 0:41:34it had bags of character, charm and period features.
0:41:34 > 0:41:37But, more importantly for Gertie, lots of space.
0:41:37 > 0:41:39So, tell me, what are you doing?
0:41:39 > 0:41:44Well, I'm turning this house into a house of multiple occupancy.
0:41:44 > 0:41:47I will rent this out and I'm going to turn it into six ensuite rooms,
0:41:47 > 0:41:51high standard of accommodation, all-inclusive,
0:41:51 > 0:41:53and I will let it out to young professionals.
0:41:53 > 0:41:58So this was no simple renovation or "make do and mend" for Gertie.
0:41:58 > 0:42:00No, she was really going for it.
0:42:00 > 0:42:03Having spent the last 20 years looking after her children,
0:42:03 > 0:42:06describing herself as a lady of leisure,
0:42:06 > 0:42:11Gertie wasn't exactly an experienced property developer,
0:42:11 > 0:42:15so she paid to join a property franchise which offers help, advice and contacts.
0:42:15 > 0:42:19Then, armed with an £80,000 budget, she set about the task
0:42:19 > 0:42:22of trying to maximise this house's earning potential.
0:42:28 > 0:42:33Now, just under seven months later, we're back.
0:42:33 > 0:42:36From the front, all the character's been retained
0:42:36 > 0:42:39but there are now new windows and a smart front door...
0:42:41 > 0:42:45..whereas at the back there's a new conservatory,
0:42:45 > 0:42:47so definitely signs of changes.
0:42:47 > 0:42:49And inside?
0:42:49 > 0:42:53Well, in the hallway, gone is that dark, dated decor
0:42:53 > 0:42:56and it leads now not to a back reception room...
0:42:59 > 0:43:01..but to a fabulous kitchen.
0:43:06 > 0:43:10This was the old dining room, but I thought it was a really good space
0:43:10 > 0:43:14for a kitchen, cos it's important in our HMOs to have spacious kitchens.
0:43:14 > 0:43:16So it was quite a dark room,
0:43:16 > 0:43:19but I tried to make it as light as possible by using lots of creams,
0:43:19 > 0:43:24and especially with the tiling, I thought it really brightened the room up.
0:43:24 > 0:43:27Then I added a conservatory onto it for some more communal space,
0:43:27 > 0:43:29and it also let more light in,
0:43:29 > 0:43:31so I think it's a nice, light room now.
0:43:31 > 0:43:34Wow, that kitchen space is quite something!
0:43:34 > 0:43:38And the conservatory leading out to the garden is inspired.
0:43:40 > 0:43:43The rest of the house isn't bad either,
0:43:43 > 0:43:46with the front reception room turned into a bedroom,
0:43:46 > 0:43:50complete with ensuite shower room.
0:43:50 > 0:43:52The middle reception room is a communal lounge.
0:43:54 > 0:43:57But with a shower room installed just off it,
0:43:57 > 0:44:03Gertie has given herself the option of converting this into a bedroom at a later date.
0:44:03 > 0:44:04And upstairs?
0:44:07 > 0:44:12There are four gorgeous ensuite bedrooms, one king-size double,
0:44:18 > 0:44:20two medium doubles,
0:44:28 > 0:44:30and one slightly smaller double.
0:44:30 > 0:44:34They're all ready and waiting for the young professional tenants.
0:44:34 > 0:44:36So, what have we got here?
0:44:38 > 0:44:40Well, I've ended up with five ensuites,
0:44:40 > 0:44:43but with the option to move it to six at a later date.
0:44:43 > 0:44:47We've done a slightly higher spec so we can get a higher rent for them.
0:44:47 > 0:44:51Gertie's aim was to create an upmarket house of multiple occupancy
0:44:51 > 0:44:55for young professionals and she's certainly done that.
0:44:55 > 0:44:59The work was completed close to her six months timescale
0:44:59 > 0:45:02but, with little developing experience to fall back on,
0:45:02 > 0:45:04how has she found the project?
0:45:04 > 0:45:05I actually did enjoy it.
0:45:05 > 0:45:09I really was very nervous when I started the process
0:45:09 > 0:45:12cos I did have no background at all with property,
0:45:12 > 0:45:16but I was quite surprised at how much I must have learned from my first property.
0:45:16 > 0:45:20I never thought I would take on a property like this as my second house.
0:45:20 > 0:45:25Gertie joined a property franchise which helped her through the process
0:45:25 > 0:45:28in return for a 5% share of the profits for a fixed period,
0:45:28 > 0:45:31but it's most definitely HER property.
0:45:31 > 0:45:33Her main role was to oversee the work.
0:45:33 > 0:45:36So, does it represent her style?
0:45:36 > 0:45:39I think it is probably me. It has got my taste on it.
0:45:39 > 0:45:42I'm trying to keep it as neutral cos obviously it's got to appeal
0:45:42 > 0:45:46to everyone, but it does have quite a bit of my taste in it as well.
0:45:49 > 0:45:54But how much did it cost to put her style signature on this place?
0:45:57 > 0:46:01Well, we actually came exactly on target at 80,000,
0:46:01 > 0:46:02so I was quite pleased.
0:46:04 > 0:46:07So Gertie stuck to her £80,000 budget.
0:46:07 > 0:46:12She bought the house for 285,000, making her total outlay,
0:46:12 > 0:46:16minus costs and fees, £365,000.
0:46:16 > 0:46:20So, can this potential rental machine do the business?
0:46:20 > 0:46:24First impressions coming back here is they've done an amazing job.
0:46:24 > 0:46:27It doesn't feel like the same house. The workmanship is fantastic.
0:46:27 > 0:46:31My only disappointment is that some of the period features have gone.
0:46:31 > 0:46:34My first impressions when I walked into the property was
0:46:34 > 0:46:38the attention to detail and how well the works have been undertaken.
0:46:38 > 0:46:43It's similar to walking into a hotel with ensuites on every room,
0:46:43 > 0:46:45so it's very impressive.
0:46:45 > 0:46:48There's no doubting the quality of this conversion,
0:46:48 > 0:46:52but has converting it into a house of multiple occupancy
0:46:52 > 0:46:55added value to her £365,000 investment?
0:46:57 > 0:47:01In terms of resale, if it was just a residential property,
0:47:01 > 0:47:06I believe that she would top out at about 350,000 for the property.
0:47:06 > 0:47:10However, as a HMO, if fully tenanted and bringing that income in,
0:47:10 > 0:47:14I believe she may be able to push that price up to about £400,000.
0:47:14 > 0:47:19I would be putting a marketing price on this property of around 400,000.
0:47:19 > 0:47:24Slightly lower because I've had some others which were 45 to 450,
0:47:24 > 0:47:26but so long as it's 400, I'm fine with that.
0:47:26 > 0:47:29So if it achieved 400,000 on the resale market,
0:47:29 > 0:47:32it's not a massive money-spinner for Gertie,
0:47:32 > 0:47:35with a potential profit of around £35,000,
0:47:35 > 0:47:39before all the tax, fees and expenses are taken off.
0:47:39 > 0:47:42But the name of the game is rental,
0:47:42 > 0:47:45and all-inclusive room-by-room rental at that.
0:47:45 > 0:47:49Looking at the rooms, the smaller rooms I believe you'd achieve £550 per calendar month,
0:47:49 > 0:47:53and the bigger rooms 600 per calendar month or maybe just over.
0:47:53 > 0:47:58I'd expect the rooms to achieve between 600 and £650 per calendar month per room.
0:47:58 > 0:48:02Well, we get a lot higher than that and I'm already renting two rooms for 750,
0:48:02 > 0:48:04so I know I can get higher than that.
0:48:04 > 0:48:08Gertie's rental rates are of course all-inclusive.
0:48:08 > 0:48:12She let the two large double rooms at £750 per calendar month
0:48:12 > 0:48:15within two days of putting them on the rental market.
0:48:15 > 0:48:19She's hoping to get 715 a month for the slightly smaller doubles,
0:48:19 > 0:48:22and £630 a month for the smallest bedroom.
0:48:22 > 0:48:25If she manages to fill the rooms all year round,
0:48:25 > 0:48:28she'll get a monthly rent of over 3,500.
0:48:28 > 0:48:32That's a very impressive yield of between 11 and 12%.
0:48:32 > 0:48:36Even though the property company will take 5% of that income,
0:48:36 > 0:48:39this has been a very successful development for her.
0:48:39 > 0:48:42I never thought I would say this but, actually,
0:48:42 > 0:48:44I'm now looking for something similar,
0:48:44 > 0:48:46so it has given me a lot of confidence
0:48:46 > 0:48:47and I think I've been so pleased
0:48:47 > 0:48:51because it all turned out exactly as I wanted it to turn out.
0:48:51 > 0:48:53# Everything I wanted
0:48:53 > 0:48:57# You're everything I wanted
0:48:57 > 0:49:00# You're just another part of me
0:49:00 > 0:49:07# You're everything I wanted Everything I wanted... #
0:49:12 > 0:49:15Back in the Staffordshire town of Newcastle-under-Lyme,
0:49:15 > 0:49:18a two-bed mid-terraced house went up for auction
0:49:18 > 0:49:21and was bought for £70,000 by Margaret and John.
0:49:21 > 0:49:23John's a retired chemistry professor,
0:49:23 > 0:49:26while Margaret's a retired music teacher,
0:49:26 > 0:49:29although she still teaches piano from time to time.
0:49:29 > 0:49:33The couple have been married for over 50 years, around the same age as this property,
0:49:33 > 0:49:37but, unlike their marriage, this was far from golden.
0:49:37 > 0:49:40It needed a fair amount of alchemy to turn it around,
0:49:40 > 0:49:42but this couple were ready to roll.
0:49:42 > 0:49:47Why now, then, John? What was the driving force to do it at this point now?
0:49:47 > 0:49:50- Oh, I think it's me.- You?
0:49:50 > 0:49:51LAUGHTER
0:49:51 > 0:49:54I think I felt I wanted a little project and, so yeah, this is it.
0:49:54 > 0:49:59So, Margaret felt this was the time to try their hand at property developing...
0:49:59 > 0:50:02# Time, oh, time... #
0:50:02 > 0:50:06..and see if not only could they keep themselves busy,
0:50:06 > 0:50:09but hopefully bolster their pension fund, too.
0:50:09 > 0:50:12Armed with a £15,000 budget,
0:50:12 > 0:50:15they were eager to crack on with the refurbishment.
0:50:17 > 0:50:21And now, four months later, we're back.
0:50:29 > 0:50:31The outside's looking good.
0:50:31 > 0:50:35There's new UPVC double-glazing, a smart front door and,
0:50:35 > 0:50:38because of the state of the old tiles, they've opted for a new roof.
0:50:38 > 0:50:41I don't remember THAT in their original plan,
0:50:41 > 0:50:44but it certainly appears a whole lot better.
0:50:44 > 0:50:46Let's take a look inside.
0:50:48 > 0:50:50Well, that's pretty impressive, too.
0:50:50 > 0:50:53The front lounge is not only fully refurbished,
0:50:53 > 0:50:57but there are also now patio doors leading out to the garden.
0:51:00 > 0:51:06It's been a very busy one, it seems, but it's been wonderful, really,
0:51:06 > 0:51:10to think back to the original house and the state it was in,
0:51:10 > 0:51:16and just make it back into a really pleasant family home.
0:51:16 > 0:51:18They've certainly done that and more,
0:51:18 > 0:51:24tackling the cosmetic state of the house as well as the damp issues.
0:51:24 > 0:51:26Once we'd got the gas fire removed,
0:51:26 > 0:51:30we could see that the boiler at the back was leaking,
0:51:30 > 0:51:34so that's the source of all our worry.
0:51:34 > 0:51:39With the damp sorted, they could get on with replacing the fireplace
0:51:39 > 0:51:42and tackling that very dilapidated kitchen.
0:51:46 > 0:51:50Then there was just one more room to deal with downstairs.
0:51:50 > 0:51:52The biggest thing we probably debated most
0:51:52 > 0:51:57- was the room between the front door and the kitchen.- Mm.
0:51:57 > 0:52:00- What were we going to do with this space?- Inner hall, it's called.
0:52:00 > 0:52:02Inner hall, yes. I think, though,
0:52:02 > 0:52:05it's now quite good, in as much as we've sectioned off...
0:52:05 > 0:52:07It's provided some storage area
0:52:07 > 0:52:11and somewhere where people can hang their coats.
0:52:11 > 0:52:14So, having made the best of an awkward space,
0:52:14 > 0:52:16it was onwards and upwards.
0:52:32 > 0:52:38The two bedrooms had been fully refurbished with new doors, carpets and paintwork.
0:52:38 > 0:52:41In fact, the place is looking as good as new.
0:52:42 > 0:52:46The upstairs is topped off with a brand-new freshly-tiled bathroom
0:52:46 > 0:52:49and a new suite with a modern shower.
0:52:49 > 0:52:51It's all now spic and span,
0:52:51 > 0:52:54but I think you've missed a bit there, Margaret!
0:52:54 > 0:52:56The house now looks sparkling,
0:52:56 > 0:52:59but there was still the small matter of clearing the garden.
0:52:59 > 0:53:05Well, the first job was to remove all the rubbish and covering.
0:53:05 > 0:53:08Then the next big job was to remove the tree.
0:53:08 > 0:53:13And then we removed all the roots, just last week,
0:53:13 > 0:53:18and got the turfing people to come and put this turf down,
0:53:18 > 0:53:22so the job still to be done is to finish it off.
0:53:22 > 0:53:24So, there's a bit to do in the garden,
0:53:24 > 0:53:27though, overall, it's practically job done.
0:53:27 > 0:53:31Although some of the work was done by tradesmen,
0:53:31 > 0:53:34they were both still very much involved in the project.
0:53:34 > 0:53:39Well, one of Margaret's strengths is certainly being able to organise
0:53:39 > 0:53:41and think ahead and plan.
0:53:41 > 0:53:44My main job is when the demand and the money comes,
0:53:44 > 0:53:47to find out where we're going to get it from!
0:53:47 > 0:53:51- Great partnership! - What savings are we going to cash?
0:53:51 > 0:53:53Having been together for over 50 years,
0:53:53 > 0:53:56it's clearly a partnership that works.
0:53:56 > 0:54:01But surely there must be some disagreements from time to time?
0:54:01 > 0:54:04Do you know, I think we've done remarkably well.
0:54:04 > 0:54:07- We haven't fallen out about anything here, have we?- No.
0:54:07 > 0:54:10Probably because you've been really good...
0:54:10 > 0:54:12and let me have my way.
0:54:12 > 0:54:16Ha! Good tactic, John. Always best to recognise who's boss.
0:54:16 > 0:54:19# Paid the cost to be the boss... #
0:54:19 > 0:54:23Has Margaret been able to keep their proposed £15,000 budget
0:54:23 > 0:54:25under control, too?
0:54:25 > 0:54:29Having a new roof obviously put a different level on that.
0:54:29 > 0:54:34At the last count, it was 25,000 we'd spent,
0:54:34 > 0:54:38but I know I've spent more since then.
0:54:38 > 0:54:40So...not brilliant.
0:54:42 > 0:54:44Oh, dear.
0:54:44 > 0:54:45A budget of £25,000
0:54:45 > 0:54:47with more to come
0:54:47 > 0:54:49on top of their £70,000 purchase price
0:54:49 > 0:54:53will take their total outlay to upwards of 95,000.
0:54:53 > 0:54:58Has returning this house to showroom condition been a wise investment?
0:54:58 > 0:55:01What do two local estate agents think?
0:55:01 > 0:55:06My first impressions of this property now it's been refurbished are that
0:55:06 > 0:55:08they've made an excellent job of the property.
0:55:08 > 0:55:14Having seen the property before, it's a totally different house.
0:55:14 > 0:55:16The standard of refurbishment is quite good.
0:55:16 > 0:55:19They've stripped the property to bare brick, replastered
0:55:19 > 0:55:21and changed the property so it's nice and modern.
0:55:21 > 0:55:26That's all positive, but will it be reflected in potential returns
0:55:26 > 0:55:29on both resale and rental values?
0:55:29 > 0:55:33If we were looking at the rental market for this property,
0:55:33 > 0:55:38I would put a figure of between 475 and £500 per calendar month.
0:55:38 > 0:55:39In terms of rental value,
0:55:39 > 0:55:43I'd put this property on the market for £495 per calendar month.
0:55:43 > 0:55:45That's good news.
0:55:45 > 0:55:49- That's about spot-on where we were hoping, wasn't it?- Mm-hm, yes.
0:55:49 > 0:55:54So, despite the overspend, those rental values aren't too shabby,
0:55:54 > 0:55:58giving a potential yield of around 6%.
0:55:58 > 0:56:05But how might their £95,000-plus investment fare on the resale market?
0:56:05 > 0:56:09If we were looking at the sales market,
0:56:09 > 0:56:13I would suggest an asking price of £99,950.
0:56:13 > 0:56:17I'd put this property on the market for sale for £94,950.
0:56:17 > 0:56:21Not so good news when you think about my budget!
0:56:22 > 0:56:24Yes! At those resale values,
0:56:24 > 0:56:27they may currently be looking at a breakeven point,
0:56:27 > 0:56:29or potentially a small loss.
0:56:29 > 0:56:32So what's the plan of action now?
0:56:33 > 0:56:37- We're much more inclined to rent. - To rent, yeah.
0:56:37 > 0:56:41- And we were probably erring in that direction anyway, weren't we?- Mm, mm.
0:56:42 > 0:56:45There go all my nice projects!
0:56:49 > 0:56:52Well, so many experiences of buying properties at auction,
0:56:52 > 0:56:54and we'll have lots more for you next time.
0:56:54 > 0:56:56- Make sure you join us then.- See you.
0:56:56 > 0:56:57- Bye-bye.- Bye-bye.
0:57:17 > 0:57:21Subtitles by Red Bee Media Ltd