0:00:02 > 0:00:04- Welcome!- Lucy and I both love to dabble in the property market,
0:00:04 > 0:00:07and are always looking to grab a bargain along the way.
0:00:07 > 0:00:11But in today's very competitive market, that's not always easy.
0:00:11 > 0:00:14But one way you can stack the odds in your favour
0:00:14 > 0:00:16is by visiting your local auction.
0:00:41 > 0:00:45Now, buying at auction is becoming increasingly popular these days.
0:00:45 > 0:00:47That's because there is no messing about.
0:00:47 > 0:00:50When the hammer falls, you've exchanged contracts.
0:00:50 > 0:00:52So let's take a look at the three properties
0:00:52 > 0:00:54that were sold at auction on today's show.
0:00:55 > 0:01:00Cooking up a development dish won't be easy in these two Fife cottages.
0:01:00 > 0:01:04- HE LAUGHS - Yeah, not exactly MasterChef, is it?
0:01:05 > 0:01:08In London, you can forget sleeping as you work at this house.
0:01:08 > 0:01:11Let's have a little lay down and see.
0:01:11 > 0:01:15So...ahhh, I'm going to stretch in the middle of the night... Clonk!
0:01:15 > 0:01:17HE LAUGHS
0:01:17 > 0:01:20And this two-bed flat in Tyne & Wear might make you jump for joy,
0:01:20 > 0:01:21but it's not all good news.
0:01:21 > 0:01:25One thing that isn't so nice is that.
0:01:26 > 0:01:28All of these properties went to auction.
0:01:28 > 0:01:30And we find out who bought them,
0:01:30 > 0:01:33and what they paid when they went under the hammer.
0:01:33 > 0:01:34Sold!
0:01:37 > 0:01:41Today, I'm 35 miles north of Edinburgh,
0:01:41 > 0:01:43about an hour's drive away.
0:01:43 > 0:01:48I'm in Leven in Fife, in Scotland.
0:01:48 > 0:01:50This beach here has actually been awarded
0:01:50 > 0:01:52the coveted Blue Flag status.
0:01:52 > 0:01:55It basically means the water here and the beach itself
0:01:55 > 0:01:57meets strict environmental guidelines.
0:01:57 > 0:01:59As you can see, it's a lovely spot.
0:01:59 > 0:02:02It's popular with families and commuters alike.
0:02:02 > 0:02:06You've got the Firth of Forth there, and in the distance, St Andrews.
0:02:06 > 0:02:08A nice spot indeed.
0:02:11 > 0:02:13As well as the fine beaches,
0:02:13 > 0:02:16the area is famous for its golf courses.
0:02:16 > 0:02:19Leven has its own, with others,
0:02:19 > 0:02:21including St Andrews and Ely just a few miles away.
0:02:21 > 0:02:24Well, just two miles from the sea,
0:02:24 > 0:02:28you find yourself in the little town of Windygates.
0:02:28 > 0:02:33And you also find this rather derelict and muddy plot.
0:02:33 > 0:02:36And situated in the middle of it,
0:02:36 > 0:02:40well, basically, two rather rundown and derelict properties.
0:02:40 > 0:02:43Semi-detached, single-storey,
0:02:43 > 0:02:45look to be in a right old state,
0:02:45 > 0:02:47but here's something interesting straight away.
0:02:47 > 0:02:49Look at that. The lintel across the window there.
0:02:49 > 0:02:51It's actually called a marriage lintel.
0:02:51 > 0:02:55If you look at the date, it says 1723 and two initials.
0:02:55 > 0:02:57AW and ES. They had that carved
0:02:57 > 0:02:59to commemorate their marriage.
0:02:59 > 0:03:03How lovely! Let's hope this property in Windygates blows me away.
0:03:03 > 0:03:05# Let's get married
0:03:05 > 0:03:09# I love you and I want to stay with you
0:03:09 > 0:03:11# Let's get married
0:03:11 > 0:03:12# Have kids... #
0:03:12 > 0:03:16The old marriage lintel shows the cottages have a long history.
0:03:16 > 0:03:18But from outside, it looks as though
0:03:18 > 0:03:21the union of these two cottages might have had its day.
0:03:21 > 0:03:24Maybe it's a happier story inside.
0:03:26 > 0:03:28It's not looking good!
0:03:28 > 0:03:33# Our D-I-V-O-R-C-E
0:03:33 > 0:03:37# Becomes final today... #
0:03:37 > 0:03:39Well, if first impressions count,
0:03:39 > 0:03:42in this case, I don't think the counting would get any further
0:03:42 > 0:03:44than, well, basically, zero.
0:03:44 > 0:03:48It is, in a nutshell, derelict.
0:03:48 > 0:03:51And just one tip, when you are looking round properties like this,
0:03:51 > 0:03:54be very careful, because you can't guarantee that the floorboards
0:03:54 > 0:03:56are going to take your weight.
0:03:56 > 0:03:59So, gingerly moving on, what have we got here?
0:03:59 > 0:04:01Well, this is one of the semi-detached properties.
0:04:01 > 0:04:04It's not a bad size. If you can see through this mess,
0:04:04 > 0:04:07you've got bedrooms that way, a bathroom,
0:04:07 > 0:04:11this living room area here, and then through into the kitchen.
0:04:11 > 0:04:13But as you can see,
0:04:13 > 0:04:16it's more than a weekend's work.
0:04:16 > 0:04:20# We're having a wild weekend We're having a wild weekend... #
0:04:20 > 0:04:22The kitchen leaves a lot to be desired,
0:04:22 > 0:04:25with a particularly worrying water feature overhead
0:04:25 > 0:04:27and units falling off the walls.
0:04:27 > 0:04:30It really does look as though it's all in a rather fragile state.
0:04:30 > 0:04:34With a property in such a state is this,
0:04:34 > 0:04:38your mind has to pretty quickly start drifting towards asking
0:04:38 > 0:04:42whether or not it's worth putting the money into either restoring it,
0:04:42 > 0:04:47or possibly, in this case, just knocking the whole place down.
0:04:47 > 0:04:51The amount of damage that's been done, basically,
0:04:51 > 0:04:55by rain, water, whatever, over the years...
0:04:55 > 0:04:58you know, to put that right, I don't know.
0:04:58 > 0:05:01Need to give that some serious consideration.
0:05:01 > 0:05:04Everything needs attention.
0:05:04 > 0:05:05The windows, walls,
0:05:05 > 0:05:08the damp emanating from every corner,
0:05:08 > 0:05:10leaks galore, dry rot, and a gaping roof.
0:05:10 > 0:05:13Let's head to its sister cottage to mull things over.
0:05:13 > 0:05:17# Just when you're thinking things over... #
0:05:17 > 0:05:20Well, was hoping that the second of the properties
0:05:20 > 0:05:22was in slightly better condition,
0:05:22 > 0:05:24but in fact, it's worse.
0:05:24 > 0:05:27More of the floorboards have actually disintegrated,
0:05:27 > 0:05:30there's more holes in the ceiling. I mean, this is the living room...
0:05:30 > 0:05:34- HE LAUGHS - It is if you're a rodent, I suppose!
0:05:34 > 0:05:36Through to the kitchen.
0:05:36 > 0:05:39Yeah, not exactly MasterChef, is it?
0:05:39 > 0:05:41Anyway, I'm starting to ignore the building as it is now.
0:05:41 > 0:05:44What I'm thinking is, what's the square footage,
0:05:44 > 0:05:47how much land have you got, and what could I build here?
0:05:49 > 0:05:51And add that to your costs.
0:05:51 > 0:05:55You need to factor in planning, demolition, and build expenses.
0:05:55 > 0:05:57But before I start plotting any further,
0:05:57 > 0:06:01let's check out the plot that the house would go on.
0:06:03 > 0:06:05OK, so enough of the negativity.
0:06:05 > 0:06:07Let's try and find some positives about this.
0:06:07 > 0:06:11Well, the land for one, is fantastic.
0:06:11 > 0:06:14A round about an acre, and good news, because it's flat.
0:06:14 > 0:06:16That's great.
0:06:16 > 0:06:18The fact that there are existing buildings here means that,
0:06:18 > 0:06:21basically, if you came to apply for planning permission,
0:06:21 > 0:06:23they'd take that into consideration.
0:06:23 > 0:06:25So you'd definitely be able to build on the plot.
0:06:25 > 0:06:28I reckon you could get maybe two, three, four houses.
0:06:28 > 0:06:31The other good news is that because these houses are already here,
0:06:31 > 0:06:33there's electricity here,
0:06:33 > 0:06:36there's probably going to be good sewerage, and maybe even gas.
0:06:36 > 0:06:39So all those things mean that this is a building plot.
0:06:39 > 0:06:42Ooh, now it's starting to get exciting!
0:06:42 > 0:06:46Remember, the guide price of £60,000.
0:06:46 > 0:06:49What does a local estate agent think of the potential here?
0:06:49 > 0:06:53Who might take on this kind of building project?
0:06:53 > 0:06:55It's not for the inexperienced, certainly.
0:06:55 > 0:06:56I think it would be more somebody
0:06:56 > 0:06:58who's looked to have done this in the past,
0:06:58 > 0:07:01because of the amount of work and the cost involved.
0:07:01 > 0:07:03So, if the current cottages were restored
0:07:03 > 0:07:09and done up to a high standard, would they be good to let out?
0:07:09 > 0:07:12I think if you do them up to a very good standard
0:07:12 > 0:07:14and you were to rent them, location-wise,
0:07:14 > 0:07:17I think you're going to be looking at around £550 per calendar month.
0:07:17 > 0:07:20Not a bad income.
0:07:20 > 0:07:23But if you demolished the two derelict cottages
0:07:23 > 0:07:25and built just one house from scratch,
0:07:25 > 0:07:28what could that be worth if sold on?
0:07:28 > 0:07:33If it was a four-bedroomed detached villa, double garage,
0:07:33 > 0:07:37You can buy for somewhere around about the 250, 300 in this area.
0:07:37 > 0:07:39So I think you're going to be looking at that kind of level.
0:07:39 > 0:07:42Unless they do something to a particularly high standard.
0:07:42 > 0:07:47So some challenges ahead for whoever took this place on.
0:07:47 > 0:07:51As a restoration project, I think it really is an no-hoper.
0:07:51 > 0:07:53But for development potential...
0:07:53 > 0:07:57well, let's see what happened when it went to the auction.
0:07:57 > 0:08:00Quite a bit of history with this property, as suggested
0:08:00 > 0:08:04by the carved marriage lintel in the property dating from 1723.
0:08:04 > 0:08:06What are we going to say for that?
0:08:06 > 0:08:0950? Get me started, ladies and gentlemen.
0:08:09 > 0:08:11£50,000. Sitting on the aisle.
0:08:11 > 0:08:13Thank you, sir. £50,000.
0:08:13 > 0:08:1752, 54, 56.
0:08:17 > 0:08:1958? 58.
0:08:19 > 0:08:2160. 62?
0:08:21 > 0:08:2462.
0:08:24 > 0:08:2764. 66?
0:08:27 > 0:08:2866.
0:08:28 > 0:08:3168. 70.
0:08:31 > 0:08:3272.
0:08:32 > 0:08:3474.
0:08:34 > 0:08:3676? Shaking his head.
0:08:36 > 0:08:39I'll take 1... 75, if it helps you. 75.
0:08:39 > 0:08:4176, 77.
0:08:41 > 0:08:43He's shaking his head again. 76.
0:08:43 > 0:08:46Gentleman who got me started at 76.
0:08:46 > 0:08:48I'm going to sell at 76,000.
0:08:48 > 0:08:51It's still cheap. I thought that would produce a hand or two!
0:08:51 > 0:08:52We'll go up in the ones,
0:08:52 > 0:08:55since I got down to that. So that's a 77 from you, sir.
0:08:55 > 0:08:5778. 79.
0:08:57 > 0:09:0180, 81, 82, 83.
0:09:01 > 0:09:034, 5, 6...
0:09:03 > 0:09:04Shaking his head.
0:09:04 > 0:09:08Are we all done at £85,000? New bidder.
0:09:08 > 0:09:1086, right at the back.
0:09:10 > 0:09:1286, 87, 88, 89.
0:09:12 > 0:09:1790, 91, 92.
0:09:17 > 0:09:2093, 94, 95, 96.
0:09:20 > 0:09:22He's shaking his head.
0:09:22 > 0:09:2695, gentleman sitting on the aisle. At £95,000, going once...
0:09:26 > 0:09:28twice, third and final time.
0:09:28 > 0:09:31£95,000. HE BANGS GAVEL
0:09:31 > 0:09:34Gentleman on the aisle in the white shirt.
0:09:34 > 0:09:40After some keen bidding, the property sold for £95,000,
0:09:40 > 0:09:44£35,000 over the guide price.
0:09:44 > 0:09:48The successful bidders were husband and wife, Julie and Ian.
0:09:48 > 0:09:52Ian runs his own mechanical engineering company,
0:09:52 > 0:09:54where Julie also works, doing the admin.
0:09:54 > 0:09:58I met them back at Windygates to find out their plans.
0:09:58 > 0:10:00Julie, Ian, congratulations!
0:10:00 > 0:10:02So, tell me, why did you buy this?
0:10:02 > 0:10:07Erm, I think it's something we've been looking at for a lot of years.
0:10:07 > 0:10:11The time came up. I spied this on a driving-around mission,
0:10:11 > 0:10:14visiting farms and different big houses
0:10:14 > 0:10:17to see if there's any land for sale.
0:10:17 > 0:10:20And convinced Julie to go to the auction only,
0:10:20 > 0:10:23not with the proviso of buying,
0:10:23 > 0:10:25but to go to the auction.
0:10:25 > 0:10:27And then I bought it! HE LAUGHS
0:10:27 > 0:10:30Ian didn't hang around, then, and no wonder.
0:10:30 > 0:10:33They've got plenty of land to pursue their dream here
0:10:33 > 0:10:36and that's to build a new home for themselves.
0:10:36 > 0:10:40So, Julie, why build a house rather than buy one?
0:10:40 > 0:10:43I'm a woman - maybe fussy!
0:10:43 > 0:10:44Has to have a large kitchen,
0:10:44 > 0:10:47cos I kind of live in the kitchen-cum-family-area.
0:10:47 > 0:10:50I have three grandchildren that I really adore,
0:10:50 > 0:10:52and I really want to have time with them,
0:10:52 > 0:10:54as well as being in the kitchen
0:10:54 > 0:10:56and still doing the usual women's chores.
0:10:56 > 0:11:00And you can't really do that in most of the new builds.
0:11:00 > 0:11:02So, have you got any experience of this kind of thing?
0:11:02 > 0:11:05Our last three houses we have built and designed ourselves.
0:11:07 > 0:11:10So Julie and Ian have lots of previous experience
0:11:10 > 0:11:13of building new homes. But what are their plans for this place?
0:11:13 > 0:11:16Do they intend to renovate
0:11:16 > 0:11:21or do as they have in the past and build anew?
0:11:21 > 0:11:25We've done the costings to try and build onto it, and build anew,
0:11:25 > 0:11:28and the economics knock it kicking.
0:11:28 > 0:11:32There's too much damage with vandalism, dry rot, dampness.
0:11:32 > 0:11:37So it makes economic sense to actually knock it down.
0:11:37 > 0:11:38So, talk me through the costings.
0:11:38 > 0:11:41Initial demolition costs, we're looking at about £12,000.
0:11:41 > 0:11:45And that basically gives us a blank canvas.
0:11:45 > 0:11:46And from the blank canvas,
0:11:46 > 0:11:50we're looking at about a £335,000 budget
0:11:50 > 0:11:53to rebuild the house of our choice.
0:11:53 > 0:11:56- So when will it actually start? - About half past two!
0:11:56 > 0:12:00So the demolition will start today, in about four hours' time?
0:12:00 > 0:12:01BOTH: Yes!
0:12:01 > 0:12:03- Can I stay and watch? - You're welcome!
0:12:03 > 0:12:06- You're certainly welcome! - THEY LAUGH
0:12:06 > 0:12:13So with demolition imminent, what about that historic lintel of 1723?
0:12:13 > 0:12:16The lintel, we haven't found the actual history on it yet.
0:12:16 > 0:12:20But as a keepsake, we'd like to integrate it to a part of the house.
0:12:20 > 0:12:24Either over a doorway or a small window.
0:12:24 > 0:12:26What a lovely plan!
0:12:26 > 0:12:30After much research and meetings with their architect,
0:12:30 > 0:12:32the couple have settled on the final design,
0:12:32 > 0:12:33bringing together all their ideas.
0:12:33 > 0:12:36They want four bedrooms, a triple garage,
0:12:36 > 0:12:38a playroom for the grandchildren,
0:12:38 > 0:12:40and space for Ian's mum, who lives with them.
0:12:40 > 0:12:43It sounds like an amazing family home,
0:12:43 > 0:12:47planning permitting, but how long will it all take?
0:12:47 > 0:12:50What's the timescale for the project, then?
0:12:50 > 0:12:52We think we can complete it within 12 months.
0:12:52 > 0:12:56Well, listen, congratulations. And good luck with the demolition!
0:12:56 > 0:13:00- Thank you very much! - Yes, thank you!- Appreciate it!
0:13:00 > 0:13:03Well, Ian and Julie have certainly got a few challenges ahead
0:13:03 > 0:13:04before the project's finished.
0:13:04 > 0:13:07But I think they're definitely making the right decision
0:13:07 > 0:13:11to demolish this place. And that demolition starts right now.
0:13:11 > 0:13:13Off you go!
0:13:13 > 0:13:20# Demolition, Demolition
0:13:20 > 0:13:23Well, a smashing time was had by all in Fife.
0:13:23 > 0:13:26And you can see if there IS a new house later in the show.
0:13:37 > 0:13:41Hunkered down next to Greenwich in south-east London,
0:13:41 > 0:13:43New Cross was long overlooked.
0:13:43 > 0:13:46But with good transport links and an uber-trendy art college,
0:13:46 > 0:13:50New Cross is fast becoming something of a London hotspot.
0:13:50 > 0:13:53There's a mix of old and new here for sure.
0:13:53 > 0:13:56Today's lot leans towards the newer end of the scale.
0:13:58 > 0:14:02There is no denying this is the less trendy part of New Cross,
0:14:02 > 0:14:05but you're only a ten-minute walk from the train stations
0:14:05 > 0:14:07and, for the guide price of 150 grand,
0:14:07 > 0:14:09in the more fashionable part of town
0:14:09 > 0:14:11you'd be looking at a one-bedroom flat.
0:14:11 > 0:14:14Here, however, it's a three-bedroomed house.
0:14:14 > 0:14:20OK, so it's 1980s rather than 1880s, and not exactly a looker.
0:14:20 > 0:14:23But, boy, is it cheap!
0:14:24 > 0:14:27Of course, I mean cheap, good, rather than cheap, bad.
0:14:27 > 0:14:31The estate setting might not be to everyone's liking.
0:14:31 > 0:14:33But for £150,000,
0:14:33 > 0:14:36I'd be tempted to have a flutter on this three-bed house.
0:14:36 > 0:14:40Well, what a nice start.
0:14:40 > 0:14:44Simple, fresh, clean, and SPACIOUS!
0:14:44 > 0:14:45Now, look at that kitchen!
0:14:45 > 0:14:48It's bigger than I would've expected,
0:14:48 > 0:14:51although I'm not really keen on those stickers that are everywhere.
0:14:51 > 0:14:54Even on the fridge door! Now, you could peel those off
0:14:54 > 0:14:57and you might find a kitchen that's salvageable.
0:14:57 > 0:14:59It depends what you want to do with the place.
0:14:59 > 0:15:02Lots of under-stair storage, which I love.
0:15:02 > 0:15:04Really nice, bright, spacious lounge.
0:15:04 > 0:15:06You could see how it could work.
0:15:06 > 0:15:08Couple of sofas here, TV in the corner.
0:15:08 > 0:15:10And you know me. What do I really like?
0:15:10 > 0:15:13Access straight out to the garden. Love it!
0:15:17 > 0:15:20Now, the garden isn't huge and it is overlooked by the flats.
0:15:20 > 0:15:23However, it's a decent outside space.
0:15:23 > 0:15:25But looking back at the upstairs,
0:15:25 > 0:15:28something a bit strange is going on with those windows.
0:15:28 > 0:15:30It appears that one of the panes has been blanked out.
0:15:30 > 0:15:34None of the neighbouring properties has that
0:15:34 > 0:15:36so it's back inside to investigate further.
0:15:36 > 0:15:39Upstairs, you get the distinct impression
0:15:39 > 0:15:41that someone has monkeyed around with the layout.
0:15:41 > 0:15:45They've turned what must have been one enormous room
0:15:45 > 0:15:47into a double bedroom, with one half of the window,
0:15:47 > 0:15:51and a kind of single in the other.
0:15:53 > 0:15:58Even though this bedroom is split, this one is a good-sized double.
0:15:59 > 0:16:03The other one, however - hmm, the jury is out. Now, what do you think?
0:16:03 > 0:16:06I'm 5ft 5, and I'm just wondering,
0:16:06 > 0:16:09would you actually get a bed in here?
0:16:09 > 0:16:11Let's have a little lay down and see.
0:16:11 > 0:16:15So, ooh, I'm going to stretch in the middle of the night... Clonk!
0:16:15 > 0:16:17No. It's not a bad space.
0:16:17 > 0:16:22You could think about an office, a nursery, but a bedroom?
0:16:22 > 0:16:24I don't think so.
0:16:24 > 0:16:28# Lay down, Sally No need to leave so soon
0:16:28 > 0:16:33# I've been tryin' all night long just to talk to you... #
0:16:33 > 0:16:35Now, before I get accused of sleeping on the job,
0:16:35 > 0:16:40there's a further double bedroom up here, and a very blue bathroom.
0:16:40 > 0:16:44I'd want to look a bit further into those patches of damp,
0:16:44 > 0:16:46but there's some decent space up here
0:16:46 > 0:16:51and we mustn't lose sight of that low guide price of 150,000.
0:16:51 > 0:16:54Incredibly competitive for London.
0:16:54 > 0:16:57We asked a local estate agent for his take on this place.
0:16:59 > 0:17:00It's a good-sized property.
0:17:00 > 0:17:03The third bedroom is slightly on the small side,
0:17:03 > 0:17:06so I would say that wouldn't be a bedroom,
0:17:06 > 0:17:07that's more of a study.
0:17:07 > 0:17:10But it doesn't need much work doing to it.
0:17:10 > 0:17:14What is it worth in its current state and after refurbishment?
0:17:16 > 0:17:20I see a value today at about £180-185,000
0:17:20 > 0:17:25and, once fully renovated, about the £200-210,000 mark.
0:17:27 > 0:17:31With all the arty students close by, what could the house let for?
0:17:33 > 0:17:35I believe it could achieve about
0:17:35 > 0:17:40£1,150 to about £1,200 per calendar month for the property.
0:17:41 > 0:17:45For the money, this little house delivers a good return.
0:17:45 > 0:17:47It needs cash spending on it for sure,
0:17:47 > 0:17:49but it's a solid box to work with.
0:17:49 > 0:17:51Let's see who agreed at the auction.
0:17:53 > 0:17:57Lot 142, a mid-terraced three-bedroom house.
0:17:57 > 0:18:00Who would like to give me a start on this?
0:18:00 > 0:18:02I don't know. 180 anywhere?
0:18:02 > 0:18:04What about 150, then?
0:18:04 > 0:18:07Thank you. 150 I've got.
0:18:07 > 0:18:09151 anywhere?
0:18:11 > 0:18:13151, 152.
0:18:13 > 0:18:17153. 154. 155.
0:18:17 > 0:18:19156.
0:18:19 > 0:18:20157.
0:18:20 > 0:18:23Having started bang on the £150,000 guide price,
0:18:23 > 0:18:28a bidding battle began, and before you knew it, was approaching
0:18:28 > 0:18:30the £200,000 mark.
0:18:30 > 0:18:31189.
0:18:31 > 0:18:32190.
0:18:32 > 0:18:35191. 192.
0:18:35 > 0:18:38192 coming in? No?
0:18:38 > 0:18:41If not, 191 for the first.
0:18:41 > 0:18:44191 for the second. 192 - nearly.
0:18:44 > 0:18:46193. 194.
0:18:48 > 0:18:50195.
0:18:50 > 0:18:51196?
0:18:53 > 0:18:55195 for the first. 195 for the second.
0:18:55 > 0:18:58195 for the third and final time.
0:18:58 > 0:19:00Are we all done? Sold! 195.
0:19:02 > 0:19:07That successful bid of 195,000 was made by 28-year-old Johnny.
0:19:09 > 0:19:12He's recently moved to London to live with his girlfriend
0:19:12 > 0:19:15and this is his first renovation project in the capital.
0:19:16 > 0:19:19# Johnny come lately
0:19:21 > 0:19:24# The new kid in town... #
0:19:25 > 0:19:28I met Johnny back at the property to find out his plans.
0:19:29 > 0:19:32So, Johnny, what brings you to New Cross?
0:19:32 > 0:19:36This wasn't actually the property that I was after in the first place.
0:19:36 > 0:19:40- Oh, yeah?- This was the second. But a very worthy second.
0:19:40 > 0:19:44You say this is a second, so you obviously had another in mind,
0:19:44 > 0:19:47- which you had researched thoroughly. - Yep.
0:19:47 > 0:19:50What about this one? How much research did you do?
0:19:50 > 0:19:53Just as much as the first one. Just as much as the first one.
0:19:53 > 0:19:56Two very different properties, the first one was a flat,
0:19:56 > 0:20:01leasehold, but beautiful Georgian building, lovely, quite simple job,
0:20:01 > 0:20:06whereas this had certain aspects of it which appealed to me
0:20:06 > 0:20:11in terms of it was a freehold house. So it was still a good purchase.
0:20:11 > 0:20:14But in terms of Georgian architecture, beautiful,
0:20:14 > 0:20:15it's not quite that.
0:20:15 > 0:20:20- Certainly not, no.- But it does serve other purposes. Tell me about that.
0:20:20 > 0:20:23Well, primarily the figures stack up.
0:20:23 > 0:20:27It's a good rental market round here and, as you see,
0:20:27 > 0:20:29it's kind of good to go as it is, really.
0:20:29 > 0:20:31MUSIC: "Johnny B Goode"
0:20:35 > 0:20:39Now, Johnny's been involved with renovations before,
0:20:39 > 0:20:42but this is his first solo venture.
0:20:42 > 0:20:45And he hopes it will be the start of a career in property developing.
0:20:45 > 0:20:48So, Johnny, what did you do before the properties?
0:20:48 > 0:20:51Before the properties, I was studying.
0:20:51 > 0:20:56I've got a degree in architecture, a Masters in town planning as well,
0:20:56 > 0:21:00so really it's all been gearing up to getting into development.
0:21:00 > 0:21:03But I had the luxury of working - well, I say working!
0:21:03 > 0:21:06Trying to badger my uncle for bits of experience
0:21:06 > 0:21:11as he has been renovating a 17th-century farmhouse in Somerset.
0:21:11 > 0:21:15So I've been getting in there as much as possible,
0:21:15 > 0:21:17kind of learning different things,
0:21:17 > 0:21:21kind of looking over a carpenter's shoulder, learning various trades.
0:21:21 > 0:21:24But then studying at the same time.
0:21:24 > 0:21:27And then deciding to move actually into the practical side
0:21:27 > 0:21:31of building a lot more than staying in architecture, because I like
0:21:31 > 0:21:34sitting at a drawing board, thrashing out drawings with pencil,
0:21:34 > 0:21:37but these days architecture's all computer-based,
0:21:37 > 0:21:39which, for me, is not the way.
0:21:39 > 0:21:42- You can't keep up with the toys. - No. Absolutely not.
0:21:42 > 0:21:44In terms of...
0:21:44 > 0:21:45- You're a pencil man.- Absolutely.
0:21:45 > 0:21:49- I'll be fine when technology fails, I'll be fine.- I'm exactly the same!
0:21:52 > 0:21:56So, Johnny is a practical, hands-on kind of guy.
0:21:56 > 0:22:01# Put your hands on put your hands on
0:22:01 > 0:22:06# Put your hands on put your hands on... #
0:22:06 > 0:22:09But what's in store for this particular renovation?
0:22:09 > 0:22:12How much work you think you need to do on this property
0:22:12 > 0:22:16- to bring it up to standard? - Well, there's two scenarios.
0:22:16 > 0:22:20If I were to purely rent it out, it's pretty much fine as it is.
0:22:20 > 0:22:22The previous owners have been quite sticker-happy
0:22:22 > 0:22:26with their declaration. The kitchen fronts, there's stickers everywhere.
0:22:26 > 0:22:29So if I was to rent it, then it would just be to remove the stickers
0:22:29 > 0:22:31and paint the place.
0:22:31 > 0:22:34But the second scenario being that I rent it out for six months
0:22:34 > 0:22:36and then sell it on, and in that case,
0:22:36 > 0:22:39which at the moment I think is going to be the most likely scenario,
0:22:39 > 0:22:44is to put a new kitchen, new bathroom and new paint job as well.
0:22:44 > 0:22:47What about that little cheeky extra bedroom upstairs?
0:22:47 > 0:22:49I actually really like it and I think it's a worthy space
0:22:49 > 0:22:52and I would leave it there.
0:22:52 > 0:22:55Originally a two-bed, it would have been two very generous bedrooms
0:22:55 > 0:22:57but as a three-bed I think it works quite well.
0:22:57 > 0:23:00You'd be hard pushed to actually squeeze a bed in there
0:23:00 > 0:23:03but for a young family with maybe a baby in a cot,
0:23:03 > 0:23:05it's be absolutely fine.
0:23:05 > 0:23:08It's an ideal study room or office. I think that would work really well.
0:23:08 > 0:23:13The good thing is, Goldsmiths College is a stone's throw away.
0:23:13 > 0:23:16Absolutely. If I was inclined to go for a student let,
0:23:16 > 0:23:19I think it would be absolutely ideal.
0:23:19 > 0:23:22In this case, I don't think that's quite what I'll be doing.
0:23:22 > 0:23:25So renting it for 6 to 12 months
0:23:25 > 0:23:28and then selling it on is really the ultimate goal.
0:23:28 > 0:23:32I think the rent-and-sell approach could work out pretty well here.
0:23:32 > 0:23:35He's bringing in a plumber and an electrician,
0:23:35 > 0:23:37but plans to do the rest himself.
0:23:38 > 0:23:41One last question for Johnny. Cash?
0:23:42 > 0:23:45So, Johnny, what sort of money have you got to spend on this
0:23:45 > 0:23:48if you go the whole hog and you really turn it around?
0:23:48 > 0:23:53I think, whole hog - we would be talking in the region of £5,000.
0:23:53 > 0:23:56That would be new kitchen, new bathroom, painting throughout,
0:23:56 > 0:23:59maybe carpets up the stairs into the bedrooms.
0:23:59 > 0:24:02And if you don't go the whole hog and you keep what's there
0:24:02 > 0:24:05and you can live with that kitchen and bathroom?
0:24:05 > 0:24:10Well, I think, all in all, maybe £1,000, 1,200 max.
0:24:10 > 0:24:13I'm just wondering if you might be able to tweak the kitchen,
0:24:13 > 0:24:16new worktops, new doors.
0:24:16 > 0:24:20Absolutely. The only thing is, once you get behind the doors,
0:24:20 > 0:24:23the actual units are really in bad condition.
0:24:23 > 0:24:26- I think you're going to be spending five grand.- Potentially.
0:24:26 > 0:24:29I'm really excited to find out which scenario you go with - A or B.
0:24:29 > 0:24:33Good luck with this project. How long do you think it will take you?
0:24:33 > 0:24:35In six weeks, I will have it all finished.
0:24:35 > 0:24:38How long it's actually going to take me - four weeks.
0:24:38 > 0:24:42I've got other commitments over the next couple of weeks, so in six weeks, it'll be finished.
0:24:42 > 0:24:46OK, good luck. We look forward to seeing the result. Thank you.
0:24:46 > 0:24:48- Thank you.- Well done, Johnny.
0:24:48 > 0:24:52So, this isn't quite a 17th-century farmhouse
0:24:52 > 0:24:54but it is a fantastic rental,
0:24:54 > 0:24:58which is why I hope Johnny goes down that route long-term.
0:24:58 > 0:25:00I really think that's the way to go here.
0:25:00 > 0:25:04You can find out what happens to him later in the programme.
0:25:05 > 0:25:07Coming up in this Tyne & Wear flat,
0:25:07 > 0:25:10you'll want to change the kitchen, bathroom...
0:25:10 > 0:25:14And wow, that is yellow!
0:25:14 > 0:25:18Back in London, Johnny had a date with development destiny.
0:25:19 > 0:25:22Water came pouring down through the wall
0:25:22 > 0:25:24and out through the socket on Friday the 13th.
0:25:26 > 0:25:30But first, we're back in Fife, where Julie is delighted
0:25:30 > 0:25:31with their new home.
0:25:31 > 0:25:34When you think about it, all our needs will be taken care of here.
0:25:38 > 0:25:41We return now to the village of Windygates in Fife,
0:25:41 > 0:25:43a couple of miles inland from the coast.
0:25:43 > 0:25:48Earlier in the programme, husband and wife Julie and Ian
0:25:48 > 0:25:50had paid £95,000
0:25:50 > 0:25:55for these two derelict cottages on a plot of about an acre.
0:25:55 > 0:25:59Ian owns an engineering company and Julie does the paperwork.
0:25:59 > 0:26:02They've been looking for a plot of land to build themselves a new home.
0:26:02 > 0:26:06They had investigated converting the two cottages,
0:26:06 > 0:26:08but that just wasn't viable.
0:26:08 > 0:26:14We've done the costings to try and build onto it and build anew,
0:26:14 > 0:26:17and the economics are not good.
0:26:17 > 0:26:22There's too much damage with vandalism, dry rot, dampness.
0:26:22 > 0:26:25So it makes economic sense to actually knock it down.
0:26:25 > 0:26:28And that's exactly what they did.
0:26:28 > 0:26:31But one year and eight months later, we're back -
0:26:31 > 0:26:33and just look at what's here now.
0:26:37 > 0:26:40The two cottages have gone,
0:26:40 > 0:26:43replaced with this four-bedroom mansion.
0:26:44 > 0:26:49The house is massive and there's a detached triple garage with accommodation above.
0:26:53 > 0:26:56Inside, on the back right-hand corner of the house,
0:26:56 > 0:27:01a fantastic kitchen has been built, with stylish, contemporary units.
0:27:03 > 0:27:08And, as Julie had planned, she can now enjoy watching her grandchildren
0:27:08 > 0:27:12play in the adjacent open-plan dining area, with a gallery above.
0:27:18 > 0:27:21On the other rear corner is the formal dining room,
0:27:21 > 0:27:23which leads through to the main living room.
0:27:25 > 0:27:28The rooms all radiate from the spacious hall.
0:27:30 > 0:27:33Ian's mum has her own living room and en-suite,
0:27:33 > 0:27:38which has been built with mobility in mind, as Julie explains.
0:27:38 > 0:27:43This en-suite bathroom's really been designed around Mum's needs.
0:27:43 > 0:27:45We've made it that the door's quite wide,
0:27:45 > 0:27:48it's got the widest possible door in
0:27:48 > 0:27:51so we can get wheelchair access in here.
0:27:51 > 0:27:55It's got an area here for Mum if she ever did need a wheelchair.
0:27:55 > 0:27:56We've got a nice shower behind.
0:27:56 > 0:28:00We've also thought about maybe Ian and I's old age,
0:28:00 > 0:28:04that if we can maybe not manage the stairs or can't go up the stairs,
0:28:04 > 0:28:07we could move down eventually. And really, when you think about it,
0:28:07 > 0:28:10all our needs are going to be taken care of here.
0:28:12 > 0:28:17Upstairs, Julie and Ian's master bedroom runs the width of the house.
0:28:17 > 0:28:21It has its own sizeable en-suite, with two entrances
0:28:21 > 0:28:24and some very smart fixtures.
0:28:25 > 0:28:30At the other side of the house, bedroom two and the third bedroom,
0:28:30 > 0:28:34which is for their grandchildren to use, can both access a shared
0:28:34 > 0:28:38Jack-and-Jill-style bathroom through a door in each of the rooms.
0:28:38 > 0:28:41So, effectively, each has its own en-suite.
0:28:44 > 0:28:48Back on the ground floor, there's a WC off the hall
0:28:48 > 0:28:51and a smaller living room at the front, overlooking the drive.
0:28:51 > 0:28:56And above the garage, Ian has HIS favourite room.
0:28:56 > 0:29:01I've always been lucky enough to have a boys' room in my main house,
0:29:01 > 0:29:02but this is the ultimate boys' room,
0:29:02 > 0:29:05where I have the combination of TV, seating area,
0:29:05 > 0:29:10built piped-in music, snooker table and I've got a lovely bar area.
0:29:11 > 0:29:14Their initial planning application was to have the garage
0:29:14 > 0:29:17at the front, but that was rejected.
0:29:17 > 0:29:20Ideally, the garage would have been better, for our needs,
0:29:20 > 0:29:25on the side of the house, but we now have a courtyard at the back
0:29:25 > 0:29:28and it gives the little ones a wee play area for the football.
0:29:28 > 0:29:30My grandson can play football there.
0:29:30 > 0:29:34Well, I hope the windows are tougher than glass!
0:29:34 > 0:29:37They've got two more grandchildren now, so the total is up to five.
0:29:37 > 0:29:42They had hoped to integrate the marriage lintel into their new home,
0:29:42 > 0:29:45but despite removing it very carefully,
0:29:45 > 0:29:48it was so fragile that it later got damaged beyond repair.
0:29:48 > 0:29:52So, Ian had a stainless steel replica made for good luck.
0:29:52 > 0:29:56They certainly needed some after the problems they hit with the build.
0:29:59 > 0:30:02One of the main obstacles we had, or delays,
0:30:02 > 0:30:06was we went through a major telecoms cable.
0:30:06 > 0:30:10The cable fed the main hospital so it had to be rerouted, obviously.
0:30:10 > 0:30:13It became our problem, not the hospital's problem,
0:30:13 > 0:30:15so it became my cost.
0:30:17 > 0:30:20It was an added £19,000 they hadn't budgeted for.
0:30:20 > 0:30:22They also had two break-ins
0:30:22 > 0:30:26when electrical cables and power tools were stolen.
0:30:26 > 0:30:28What effect has it all had on their outlay?
0:30:28 > 0:30:33The budget, we set aside about £500,000
0:30:33 > 0:30:37for the whole project, acquiring the land and building the house,
0:30:37 > 0:30:41and I would say about £5,000, £5,600 just now.
0:30:41 > 0:30:44So, including the £95,000 original purchase price for the cottages
0:30:44 > 0:30:51and land, has it been £556,000 well spent?
0:30:51 > 0:30:54Time to get the opinion of two local property experts.
0:30:54 > 0:30:57How will they rate
0:30:57 > 0:31:00this impressive four-bedroom new build?
0:31:00 > 0:31:03The most unusual aspect is that they managed to keep the room sizes
0:31:03 > 0:31:05as generous as they have
0:31:05 > 0:31:09and they've not tried to cram in as many rooms as they possibly could.
0:31:09 > 0:31:11It's got a very impressive front elevation.
0:31:11 > 0:31:14It's been individually designed
0:31:14 > 0:31:16and has very spacious family accommodation
0:31:16 > 0:31:18with very good-sized rooms.
0:31:18 > 0:31:20They've done a high finish throughout -
0:31:20 > 0:31:23the bespoke kitchen, the treble-detached garage,
0:31:23 > 0:31:26so they've done a wonderful job, I have to say.
0:31:26 > 0:31:31How much do the experts think the house is now worth?
0:31:31 > 0:31:35More than the £556,000 that the couple have invested here?
0:31:35 > 0:31:37It's obviously a very unique property,
0:31:37 > 0:31:40so difficult to give a specific value,
0:31:40 > 0:31:44but I would expect it to be somewhere between £460,000 to £500,000.
0:31:44 > 0:31:47This is a unique property, it's designer built.
0:31:47 > 0:31:54The re-sale value we'd be expecting would be £460,000 to £480,000.
0:31:54 > 0:31:59Those valuation ranges of between £460,000 and £500,000
0:31:59 > 0:32:03means if they were to take the unlikely decision to sell, they'd make a loss
0:32:03 > 0:32:09of between £56,000 and £96,000 in the current climate.
0:32:10 > 0:32:13- I'm happy enough with that. - That's a fair price.
0:32:13 > 0:32:16It's not done as an investment,
0:32:16 > 0:32:19it's done as a family home long-term.
0:32:19 > 0:32:22Ian's absolutely right.
0:32:22 > 0:32:25They've created a fantastic bespoke family home
0:32:25 > 0:32:27that suits them perfectly right down to the ground.
0:32:27 > 0:32:31Four generations of the family are going to enjoy living
0:32:31 > 0:32:34and staying here, and that's something you can't put a price on.
0:32:36 > 0:32:37We've got our dream home.
0:32:37 > 0:32:41It's a good location for us, it's nice and private and quiet
0:32:41 > 0:32:44and it's fun for the grandchildren when they come down to stay.
0:32:44 > 0:32:49I'd just love to sit back at the end of the day and think we managed it.
0:32:49 > 0:32:53With the help of a lot of people, but we managed. We got there.
0:32:58 > 0:33:00I'm in Hebburn,
0:33:00 > 0:33:06a small town less than 20 minutes' drive from Newcastle.
0:33:06 > 0:33:10It's on the Metro system that links this town with South Shields nearby
0:33:10 > 0:33:12and Gateshead further afield.
0:33:12 > 0:33:16Even better than that, I'm heading to a property just round the corner
0:33:16 > 0:33:18from shops, bus stops and the Metro station.
0:33:20 > 0:33:24So, good transport links and a nice residential area.
0:33:24 > 0:33:28The property I'm here to see, bit misleading from the outside.
0:33:28 > 0:33:29Looks like a terraced house
0:33:29 > 0:33:33but it's in fact a purpose-built two-bedroomed flat.
0:33:33 > 0:33:37At a guide price of 24,950 quid,
0:33:37 > 0:33:40we're expecting a very interesting investment opportunity.
0:33:40 > 0:33:46I'm sure the property was originally a two-up, two-down terraced house,
0:33:46 > 0:33:49but it's now divided into a ground floor and first floor self-contained flat.
0:33:52 > 0:33:56The ground-floor flat has this big bay window
0:33:56 > 0:34:00and its own front door, so things are looking promising.
0:34:02 > 0:34:05Sometimes with flats, you'd have an exterior door, then a corridor,
0:34:05 > 0:34:08and then separate doors leading out into the flat itself,
0:34:08 > 0:34:11so that is a really positive thing to have.
0:34:11 > 0:34:14It gives it a really nice feel. High ceilings, which bodes well,
0:34:14 > 0:34:19and through into the first of your bedrooms - and wow!
0:34:19 > 0:34:21A really nice size.
0:34:21 > 0:34:23Far too big for just a single bed.
0:34:23 > 0:34:27High ceilings, a bit of coving up there, so a really nice touch.
0:34:27 > 0:34:29Erm...
0:34:29 > 0:34:30Oh.
0:34:32 > 0:34:34One thing that isn't so nice is that.
0:34:34 > 0:34:37There's a dip in the floor there, and as you can see,
0:34:37 > 0:34:39something's gone horribly wrong.
0:34:39 > 0:34:42It's not so bad over here. Just in the middle there.
0:34:42 > 0:34:44Something's happened to the floor.
0:34:44 > 0:34:46It could be dry rot, wet rot,
0:34:46 > 0:34:50one of the joists perhaps has been eaten through by a mouse.
0:34:50 > 0:34:52A bit random, that one, but you never know!
0:34:52 > 0:34:56Until you take up the floorboards, you won't know.
0:34:56 > 0:34:59It could be serious or it could be fixed
0:34:59 > 0:35:01by a few bricks in the right place.
0:35:02 > 0:35:05But once the floor is sorted and the room's been decorated,
0:35:05 > 0:35:07it'll make a lovely bedroom.
0:35:07 > 0:35:11Further down the corridor is the second bedroom,
0:35:11 > 0:35:15which is smaller and needs cosmetic attention. But a boiler in the bedroom?
0:35:15 > 0:35:18I'm never keen on that, so I'd suggest relocating it.
0:35:20 > 0:35:23What about the living area?
0:35:23 > 0:35:25Into the lounge.
0:35:25 > 0:35:28And wow, that is yellow.
0:35:29 > 0:35:34My word. If your lounge is this colour, then great.
0:35:34 > 0:35:37It wouldn't necessarily suit everyone's tastes,
0:35:37 > 0:35:41as indeed wouldn't the fireplace.
0:35:41 > 0:35:45Probably a bit of re-working required in here,
0:35:45 > 0:35:50but it's, again, a nice size and it leads onto the kitchen,
0:35:50 > 0:35:56a room which certainly would benefit from just a few thousand pounds.
0:35:56 > 0:35:57Some nice units in here.
0:35:57 > 0:36:00A bit of thought about the decor, the lighting,
0:36:00 > 0:36:04and you would transform this flat.
0:36:04 > 0:36:06Paint required. Paint, paint, paint, paint.
0:36:06 > 0:36:10So, new decor, new kitchen, fireplace,
0:36:10 > 0:36:14carpets and possibly floorboards, but don't let that list fool you.
0:36:14 > 0:36:15You haven't seen the bathroom.
0:36:15 > 0:36:20It's off the kitchen with a corner shower and a not-so-peachy suite.
0:36:20 > 0:36:24It's desperate for an upgrade, not to mention a bath.
0:36:24 > 0:36:28There's some Artex on the ceiling, which could contain asbestos
0:36:28 > 0:36:33given the property's age, so that needs professional advice and removal.
0:36:33 > 0:36:36Outside, there's a backyard that needs a tidy up,
0:36:36 > 0:36:40but a messy backyard is better than no backyard in my book.
0:36:40 > 0:36:43Another thing that needs sorting is the lease,
0:36:43 > 0:36:45which has just 66 years left.
0:36:45 > 0:36:47That could affect getting a mortgage
0:36:47 > 0:36:51and extending it needs to be factored into your budget.
0:36:51 > 0:36:53Apart from all that, it's great.
0:36:57 > 0:36:58The to-do list does seem pretty long,
0:36:58 > 0:37:03but in essence, this is a flat with good potential.
0:37:03 > 0:37:07Can a local estate agent find something to love here?
0:37:07 > 0:37:12I think it's very evident that it does need some improvements,
0:37:12 > 0:37:15but I think what is also very evident is it's lovely and spacious
0:37:15 > 0:37:21and it certainly has the potential to be a lovely home
0:37:21 > 0:37:23for either first-time buyers or people downsizing.
0:37:23 > 0:37:27What work needs to be done here?
0:37:27 > 0:37:31Potentially, new central heating, that is always important,
0:37:31 > 0:37:33certainly if it's going to be let.
0:37:33 > 0:37:37New kitchen, new bathroom, I think it's important to reinstate the bath
0:37:37 > 0:37:41in the bathroom because that does tends to appeal to a wider audience.
0:37:41 > 0:37:44After it's had a fresh lick of paint and then refurbished,
0:37:44 > 0:37:46how much could it be worth?
0:37:46 > 0:37:50Once it's renovated, I would put a value of £70,000.
0:37:50 > 0:37:53And for a buy-to-let investor,
0:37:53 > 0:37:56how much rental income could the flat generate?
0:37:56 > 0:38:01I would expect this to rent for £425 per calendar month.
0:38:01 > 0:38:05Well, it's a good little flat,
0:38:05 > 0:38:07especially if you like the colour bright yellow.
0:38:07 > 0:38:11Did it make the other bidders in the auction green with envy?
0:38:11 > 0:38:14Let's find out who bought it when it went under the hammer.
0:38:14 > 0:38:16Two-bed ground-floor flat,
0:38:16 > 0:38:19ideally placed for taking advantage of the town centre.
0:38:19 > 0:38:21Your details are there.
0:38:21 > 0:38:24We've got this in the catalogue with a price guide of £24,950 plus.
0:38:24 > 0:38:27Can I ask for 25,000 anywhere to start?
0:38:27 > 0:38:28Front row, 23,000.
0:38:28 > 0:38:3224 anywhere else? I've got the one bid on the front row, 23,000.
0:38:32 > 0:38:3524 bid.
0:38:35 > 0:38:3725, 26,
0:38:37 > 0:38:4127, 28, 29...
0:38:41 > 0:38:4330. 31, 32.
0:38:43 > 0:38:4732 bid. 33? 34.
0:38:47 > 0:38:52Lady on the front row, 33,000. 34,000, a new bidder. 35. 36.
0:38:53 > 0:38:57Anybody else? 36, 37, 38?
0:38:57 > 0:39:0039, 40.
0:39:00 > 0:39:0241, 42.
0:39:02 > 0:39:0442 bid.
0:39:04 > 0:39:0743, 44.
0:39:07 > 0:39:0945. 46.
0:39:09 > 0:39:13At 45,000 to the lady on the front row. I'll take 500.
0:39:13 > 0:39:1545,500 bid. 46.
0:39:15 > 0:39:1746,500.
0:39:17 > 0:39:1947.
0:39:19 > 0:39:2147,500.
0:39:21 > 0:39:2248.
0:39:22 > 0:39:26You've tried from the beginning. You may as well keep going.
0:39:26 > 0:39:29That was 48. 48,500. No?
0:39:29 > 0:39:33I'm selling it once at 48, for the second time at £48,000.
0:39:33 > 0:39:37Sold to the lady on the front row.
0:39:37 > 0:39:39There, from the first to the last bid and getting the flat
0:39:39 > 0:39:43for £48,000 was Stacy, who bought it with her brother, Matt.
0:39:43 > 0:39:48Stacy was a personnel manager for 16 years, but recently
0:39:48 > 0:39:52she's changed the direction of her career into property developing.
0:39:52 > 0:39:54# Don't know about you but I'm on my way
0:39:54 > 0:39:58# You're holding me back Had to leave someday. #
0:39:59 > 0:40:02I met her back at the flat to find out more.
0:40:02 > 0:40:04Stacy, lovely to meet you.
0:40:04 > 0:40:08- And you.- Congratulations. - Thanks very much.
0:40:08 > 0:40:11- You glance up at the fireplace. - Yes, it's lovely!
0:40:11 > 0:40:14We'll come onto the decorations in a second,
0:40:14 > 0:40:16but tell me why you want to buy the flat.
0:40:16 > 0:40:19Well, I live quite local and I have another property
0:40:19 > 0:40:22a couple of streets away which I'm busy doing out.
0:40:22 > 0:40:25It's similar to this one, and they seem to be good sellers as well
0:40:25 > 0:40:28and they don't take too long to turn around.
0:40:28 > 0:40:33Tell me what the plan is. You bought it to do it up to sell it on?
0:40:33 > 0:40:34We bought it to do it and sell it.
0:40:34 > 0:40:36We were going to start renting some out
0:40:36 > 0:40:40- but I think for this one we'll be selling it on.- And "we" is who?
0:40:40 > 0:40:43Myself and my brother. My brother does all of the work.
0:40:43 > 0:40:45He project manages it all.
0:40:45 > 0:40:50Stacy's brother Matt is a plumber and this is their second project together.
0:40:50 > 0:40:53Although Stacy is quite new to property investing,
0:40:53 > 0:40:56she knows her way around a renovation,
0:40:56 > 0:41:00having done up all nine of her previous homes.
0:41:00 > 0:41:03This is more than just a project on the side.
0:41:03 > 0:41:07- Is this your full-time job, then? - It is now, yes.
0:41:07 > 0:41:09I was made redundant not so long ago
0:41:09 > 0:41:14and I had some money going spare so I thought it's better than sitting in the bank
0:41:14 > 0:41:17so I'll buy some properties and spend the money wisely.
0:41:17 > 0:41:20Moving forward, how many properties would you try and do a year?
0:41:20 > 0:41:24Think if we could aim for about six properties this year,
0:41:24 > 0:41:26and once we've completed them,
0:41:26 > 0:41:29hopefully from next year we can look at renting some out.
0:41:29 > 0:41:32We're trying to be mortgage-free completely, so... That's the idea.
0:41:32 > 0:41:37Stacy is onto a good thing if they can stay mortgage-free.
0:41:37 > 0:41:42It sounds like they're building towards a solid portfolio.
0:41:42 > 0:41:47But she's got some work to do here before adding this to her empire.
0:41:47 > 0:41:49Tell me what you're going to do.
0:41:49 > 0:41:53First of all, we're going to get some people in
0:41:53 > 0:41:56and completely strip the whole flat,
0:41:56 > 0:41:58so say goodbye to the fireplace
0:41:58 > 0:42:02and take off all of the skirting boards because they're all odd.
0:42:02 > 0:42:03Obviously strip the walls
0:42:03 > 0:42:07and the Artex ceilings have to go as well.
0:42:07 > 0:42:09So basically, gut the whole flat.
0:42:09 > 0:42:13I think in a few places the floor was quite unsafe,
0:42:13 > 0:42:16so I've got some joists to repair there.
0:42:16 > 0:42:21We'll have the electrics checked. New radiators and bathroom suite.
0:42:21 > 0:42:22And in terms of the budget?
0:42:22 > 0:42:24Think we're looking at about £7,500 to £8,000.
0:42:24 > 0:42:28We spent roughly that on the other property that we've done up.
0:42:28 > 0:42:31It's the mirror image of this property, so it will be the same.
0:42:31 > 0:42:35- And the timescale?- We will be looking at about 12, 13 weeks.
0:42:35 > 0:42:40One of the issues with the property is it is leasehold and the lease isn't...
0:42:40 > 0:42:44It's long but it's not as long as some mortgage companies like.
0:42:44 > 0:42:48Yeah, that's it. It's currently 66 years.
0:42:48 > 0:42:51We saw that in the legal pack before the auction happened
0:42:51 > 0:42:54and the solicitor is looking at extending that.
0:42:54 > 0:42:56It's in our best interests.
0:42:56 > 0:42:59Has he given you an indication of the cost to get it extended?
0:42:59 > 0:43:02He's hoping it will be under £1,000.
0:43:02 > 0:43:04Congratulations. Good luck with it.
0:43:04 > 0:43:07- Thanks very much. - I'm looking forward to see how you get on.- Thanks.
0:43:08 > 0:43:10Well, it looks like the fireplace
0:43:10 > 0:43:14and the yellow paint job are destined to be history.
0:43:14 > 0:43:16Phew.
0:43:16 > 0:43:19But what's more serious is that lease.
0:43:19 > 0:43:2266 years really could be a problem
0:43:22 > 0:43:26when it comes to getting mortgage finance for any future buyers.
0:43:26 > 0:43:29How will Stacy get on getting it extended?
0:43:29 > 0:43:31You can find out later in the show.
0:43:34 > 0:43:37It's been a while now since we last saw those properties.
0:43:37 > 0:43:39There should've been all sorts of work carried out,
0:43:39 > 0:43:43but as we know from bitter experience, that's not always the case.
0:43:43 > 0:43:45All sorts of problems can arise.
0:43:45 > 0:43:49What have our buyers had to cope with? Let's find out.
0:43:51 > 0:43:54Time now to cross back over to New Cross in London
0:43:54 > 0:43:56and this three-bed mid-terrace,
0:43:56 > 0:43:59which wannabe full-time property developer Johnny
0:43:59 > 0:44:03bought at auction for £195,000.
0:44:03 > 0:44:06He did have his sights set on a period property,
0:44:06 > 0:44:08but missed out on that at auction,
0:44:08 > 0:44:11but as a second choice, this one didn't seem so bad.
0:44:12 > 0:44:17In terms of Georgian architecture, beautiful - it's not quite that.
0:44:17 > 0:44:22- Certainly not, no.- But it does serve other purposes. Tell me about that.
0:44:22 > 0:44:26Primarily, the figures stack up and it's a good rental market round here,
0:44:26 > 0:44:30and as you see, it's kind of good to go as it is.
0:44:32 > 0:44:36Johnny was unsure whether to do just the very minimum here
0:44:36 > 0:44:39and peel off the stickers in the kitchen, or to go the whole hog
0:44:39 > 0:44:43and spend six weeks and five grand dragging the flat
0:44:43 > 0:44:45kicking and screaming out of the 1980s.
0:44:45 > 0:44:48Well, five weeks after our first visit,
0:44:48 > 0:44:52we're are back to see what's been going down at the mid-terrace.
0:44:52 > 0:44:56# Trying to make some sense of it all
0:44:56 > 0:44:59# But I can see it makes no sense at all
0:44:59 > 0:45:02# Is it cool to go to sleep on the floor?
0:45:02 > 0:45:07# Cos I don't think that I can take any more
0:45:07 > 0:45:11# Clowns to the left of me Jokers to the right
0:45:11 > 0:45:15# Here I am Stuck in the middle with you. #
0:45:15 > 0:45:16And Johnny's done good.
0:45:19 > 0:45:22There's still a bit to do after a nasty leak,
0:45:22 > 0:45:23but I'm delighted to see
0:45:23 > 0:45:26he's gone further than peeling off those stickers. A lot further.
0:45:26 > 0:45:29Since you were last here,
0:45:29 > 0:45:32we've replaced the kitchen, which has come out fantastically,
0:45:32 > 0:45:36the bathroom has been replaced and is in the process of being finished off.
0:45:36 > 0:45:40It's not quite there due to some unforeseen problems that we had.
0:45:40 > 0:45:43It's been painted throughout, completely freshened up.
0:45:43 > 0:45:46The floors have been slightly reconditioned
0:45:46 > 0:45:49and there's been a radiator put in the second bedroom
0:45:49 > 0:45:51as it didn't have one previously.
0:45:51 > 0:45:54The new kitchen really is fabulous,
0:45:54 > 0:45:57a big improvement on what was here before.
0:45:58 > 0:46:04If you remember, last time you were here, the kitchen was tired.
0:46:04 > 0:46:08All the units had stickers on the front of them,
0:46:08 > 0:46:10so we've ripped out all the old units.
0:46:10 > 0:46:13We've kept a similar layout apart from the washing machine.
0:46:13 > 0:46:15New worktops, new tiles,
0:46:15 > 0:46:18new kitchen units just to try and freshen up the area.
0:46:18 > 0:46:22Tiles were probably slightly more expensive than I'd buy normally
0:46:22 > 0:46:25but I think it really sets the kitchen off.
0:46:25 > 0:46:28Overall, very happy with that. Very happy with it.
0:46:28 > 0:46:31Anything left to sort out here?
0:46:31 > 0:46:35One thing I still have to do is put the door handles on.
0:46:35 > 0:46:38# Pretty little thing Let me light your candle
0:46:38 > 0:46:41# Cos mama, I'm sure hard to handle now, gets around. #
0:46:41 > 0:46:44Well, don't let us get in the way, Johnny.
0:46:44 > 0:46:48The bathroom also needs finishing off, so hands-on Johnny
0:46:48 > 0:46:51had better press on, because he's got a deadline to meet.
0:46:52 > 0:46:55The property is going to be rented out for six months.
0:46:55 > 0:46:57I've got people moving in in a couple of days,
0:46:57 > 0:47:00so still lots to do before they move in,
0:47:00 > 0:47:04and then after they've moved out in six months' time,
0:47:04 > 0:47:06the plan is to sell the property.
0:47:06 > 0:47:10Johnny did think he was home and dry and then disaster struck.
0:47:10 > 0:47:15It seemed the radiator in the little room upstairs
0:47:15 > 0:47:18hadn't been connected properly by a previous owner,
0:47:18 > 0:47:21so when Johnny fired up the central heating...
0:47:23 > 0:47:26Water came pouring down through the wall and out through the socket,
0:47:26 > 0:47:31which was a surprise on Friday the 13th,
0:47:31 > 0:47:35but luckily, I had a plumber here that day,
0:47:35 > 0:47:39so we kind of remedied the problem, connected it back into the loop.
0:47:39 > 0:47:42The first thing we had to do was put a hammer through the ceiling
0:47:42 > 0:47:47to release all the water, which has its plus points also,
0:47:47 > 0:47:51because with the exposed pipes we could put a radiator
0:47:51 > 0:47:54in the second headroom without too much hassle.
0:47:54 > 0:47:58So, small saving graces.
0:47:58 > 0:48:04Of course, he made sure that the electrics were professionally checked and certified.
0:48:04 > 0:48:07So, it's back to those drawer handles, Johnny.
0:48:07 > 0:48:10The leak will push him just over his six-week schedule,
0:48:10 > 0:48:13but what about his five-grand budget?
0:48:13 > 0:48:16Has that been blown out of the water?
0:48:16 > 0:48:20Taking into consideration the problems we've had,
0:48:20 > 0:48:24I'm about £300 over budget, so about £5,300.
0:48:26 > 0:48:28With his purchase price of £195,000,
0:48:28 > 0:48:34Johnny's total outlay here is just a smidge over £200,000.
0:48:34 > 0:48:35We asked along two local state agents
0:48:35 > 0:48:40to see what they make of the mid-terrace.
0:48:40 > 0:48:43The property has been vastly improved from previously,
0:48:43 > 0:48:46really modernised, brand-new bathroom,
0:48:46 > 0:48:49fantastic new kitchen, very modern feel for a property.
0:48:49 > 0:48:52Once people come in, this property will stand out usually.
0:48:52 > 0:48:54He's used very dramatic colours,
0:48:54 > 0:48:58which some people won't like, but I think in a property like this,
0:48:58 > 0:49:00which could be quite bland as it's very boxy, it works.
0:49:00 > 0:49:03It just gives the right balance.
0:49:03 > 0:49:07What do they reckon the property could fetch if let out?
0:49:07 > 0:49:09If I had to put it up for rent,
0:49:09 > 0:49:12I believe it would achieve £1,000 per calendar month
0:49:12 > 0:49:14to £1,100 per calendar month.
0:49:14 > 0:49:15If I put the property up for rent,
0:49:15 > 0:49:20I'd put it between £1,300 to £1,550 per calendar month.
0:49:20 > 0:49:25£1,350, I think sounds slightly hopeful.
0:49:25 > 0:49:28My estimates would be more in the £1,200 area.
0:49:28 > 0:49:32The estate agents' rental valuations would mean
0:49:32 > 0:49:36a yield of between 6% and 8%, which isn't bad at all.
0:49:36 > 0:49:40But longer term, Johnny plans to sell the property on,
0:49:40 > 0:49:45so what kind of resale value would the experts put on the mid-terrace?
0:49:46 > 0:49:48If I was putting this on the market for sale,
0:49:48 > 0:49:52I'd be looking for it to achieve probably around £225,000.
0:49:52 > 0:49:54If was to I put the property up for sale,
0:49:54 > 0:49:59I'd expect it to achieve between £225,000 to £235,000.
0:49:59 > 0:50:04I think £225 is maybe slightly on the shy side.
0:50:04 > 0:50:08I've had another estate agent who'd be happy to put it on
0:50:08 > 0:50:13for more than that, but it's a figure that I'd probably be happy with.
0:50:15 > 0:50:21A sale at £225,000 or £230,000 would give Johnny a pre-tax profit,
0:50:21 > 0:50:26before fees and expenses, of between around £25,000 and £30,000,
0:50:26 > 0:50:28which isn't bad for a first go at this.
0:50:28 > 0:50:31What does the future hold for him?
0:50:33 > 0:50:37Ten years' time from now, I'd like to be working on similar things,
0:50:37 > 0:50:41but with more people around me to help me do the job,
0:50:41 > 0:50:46bigger properties and bigger profit margins.
0:50:48 > 0:50:51Back now to Hebburn in Tyne & Wear,
0:50:51 > 0:50:55where, earlier in the programme, Stacy had bought
0:50:55 > 0:50:58a two-bedroom ground-floor flat in this terrace for £48,000.
0:51:02 > 0:51:04She was a personnel manager for 16 years,
0:51:04 > 0:51:07but when she was made redundant, decided to start her own property-developing business
0:51:07 > 0:51:10with her brother Matt, who is a plumber.
0:51:10 > 0:51:13It was their second property,
0:51:13 > 0:51:16and Stacy was going to work on it full-time,
0:51:16 > 0:51:20with Matt fitting it in around his plumbing jobs.
0:51:20 > 0:51:23Tell me what the plan is. You've bought it to do it up and sell?
0:51:23 > 0:51:25We've bought it to do it and sell it.
0:51:25 > 0:51:27We were going to start renting some out,
0:51:27 > 0:51:30but I think, for this one, we'll be selling it on.
0:51:30 > 0:51:34- And the timescale?- We'll be looking at about 12, 13 weeks.
0:51:36 > 0:51:39Now, 11 weeks later, we've returned.
0:51:41 > 0:51:44And Stacy's keen to show us around.
0:51:44 > 0:51:47The kerb appeal has been much improved,
0:51:47 > 0:51:50thanks to a new wall and path.
0:51:52 > 0:51:55The kitchen has been completely refitted.
0:51:56 > 0:51:59There are new appliances and units.
0:52:01 > 0:52:05And behind the kitchen, the former wet room now has a bath.
0:52:07 > 0:52:09With matching hand basin and loo.
0:52:11 > 0:52:14It's bright, white and shiny.
0:52:14 > 0:52:17Two important rooms are now ready for rental.
0:52:17 > 0:52:20In the kitchen, one of the first jobs we had to do
0:52:20 > 0:52:25was to strip out the range of old units that were in here.
0:52:25 > 0:52:27We replaced the wood ceiling with plasterboard
0:52:27 > 0:52:30and we had the whole kitchen re-skinned.
0:52:30 > 0:52:33We then put in some new units and work surfaces
0:52:33 > 0:52:37and installed a new oven, hob and extractor fan.
0:52:37 > 0:52:40The final job in the kitchen was to relocate the boiler,
0:52:40 > 0:52:46which was in the back bedroom, and we put that in the kitchen as well.
0:52:46 > 0:52:50Once that boiler had gone from the second bedroom,
0:52:50 > 0:52:52it was replastered like the rest of the flat,
0:52:52 > 0:52:54and has also been rewired.
0:52:57 > 0:53:00But in the lounge, it wasn't just the yellow colour scheme
0:53:00 > 0:53:03and fireplace that needed attention.
0:53:03 > 0:53:08The living room had quite a big fireplace, a big stone fireplace.
0:53:08 > 0:53:14When we took that down, we noticed there was no joists underneath that either,
0:53:14 > 0:53:18so he had to lift up the floor, put joists in there.
0:53:18 > 0:53:22The ceiling in the sitting room was quite heavily Artexed as well.
0:53:22 > 0:53:25We couldn't get it off so we had to pull down the whole ceiling,
0:53:25 > 0:53:28re-board that and then re-plaster the whole room.
0:53:28 > 0:53:32With new doors, windows and skirting throughout,
0:53:32 > 0:53:35Stacy and Matt have refurbished the flat very well inside and out,
0:53:35 > 0:53:39and as they've decided to sell rather than let,
0:53:39 > 0:53:45they decided to fix anything that could get a prospective buyer jumping up and down.
0:53:45 > 0:53:46Remember this?
0:53:46 > 0:53:49# Bounce! #
0:53:49 > 0:53:52When we purchased the property,
0:53:52 > 0:53:56the floor in the bedroom was very springy.
0:53:56 > 0:53:59We found that approximately eight of the joists were rotten,
0:53:59 > 0:54:01so we replaced all the joists,
0:54:01 > 0:54:06got the floor to be nice and level again, then put new floorboards down on top of that.
0:54:06 > 0:54:10Who's been involved in the refurbishment?
0:54:10 > 0:54:12There was mainly myself and my brother,
0:54:12 > 0:54:15but we also had a plasterer, electrician
0:54:15 > 0:54:17and we had a young lad come along
0:54:17 > 0:54:21and he stripped the whole property out for us within the first week.
0:54:21 > 0:54:23My parents have been helping out as well.
0:54:23 > 0:54:28My main job, I done the tiling. I helped with the kitchen as well.
0:54:28 > 0:54:30Then we decorated each room.
0:54:30 > 0:54:33With Matt's mates and other friends and family helping out,
0:54:33 > 0:54:36what effect did that have on the budget?
0:54:36 > 0:54:40The original budget was, I think we set about £7,000.
0:54:40 > 0:54:43We always keep about 10% contingency as well just in case,
0:54:43 > 0:54:47and I think we've spent about £8,000 when I totalled it up.
0:54:47 > 0:54:51With the £48,000 they paid at auction,
0:54:51 > 0:54:55that takes the total outlay to £56,000.
0:54:55 > 0:55:00Time to hear what two local estate agents of will think of the flat
0:55:00 > 0:55:03and its potential resale value.
0:55:03 > 0:55:04It's nice, it's in a good area.
0:55:04 > 0:55:07Close to the shops and the local park
0:55:07 > 0:55:11- and it's been done to quite a good standard.- It's very basic, neutral,
0:55:11 > 0:55:13but it's clean, simple
0:55:13 > 0:55:16and I think it will appeal to a wide variety of people.
0:55:18 > 0:55:21Good news, both agents seem impressed.
0:55:21 > 0:55:24So how much rental income could the flat achieve?
0:55:25 > 0:55:28Rental, I would hope to achieve
0:55:28 > 0:55:32£425 to £400 per calendar month.
0:55:32 > 0:55:35In my opinion, it would achieve
0:55:35 > 0:55:38between £425 to £500 per calendar month.
0:55:38 > 0:55:41Impressive yields to be had here, then.
0:55:41 > 0:55:43Between 8.5% and nearly 11%.
0:55:43 > 0:55:48Is Stacy tempted to let instead of sell?
0:55:48 > 0:55:49As much as that? Right.
0:55:49 > 0:55:54I think £500 would be fantastic if I was going to rent it out,
0:55:54 > 0:55:57but definitely looking just for a straightforward sale.
0:55:57 > 0:56:00OK, time for some sale valuations.
0:56:00 > 0:56:03Is the flat worth more than the £56,000
0:56:03 > 0:56:06that Stacy and Matt have invested?
0:56:06 > 0:56:10Sales, again, taking current market conditions into consideration,
0:56:10 > 0:56:12I would hope to achieve £75,000.
0:56:12 > 0:56:16In my opinion, I'd put this property on the market for £80,000 to achieve
0:56:16 > 0:56:18anywhere in the region of £75,000.
0:56:18 > 0:56:21Well, if they achieve a sale at £75,000,
0:56:21 > 0:56:25that would produce a gross profit of £19,000
0:56:25 > 0:56:27before the usual selling expenses.
0:56:27 > 0:56:32So, what's next for Stacy and her brother Matt?
0:56:32 > 0:56:35Is she pleased with those figures?
0:56:35 > 0:56:37Spot on. That's exactly what we were looking for.
0:56:37 > 0:56:41The plan is now to put the flat on the market.
0:56:41 > 0:56:43Hopefully we'll be able to pick up a few more properties
0:56:43 > 0:56:46in the next few weeks and do it all again.
0:56:48 > 0:56:51There you go, another group of plucky buyers
0:56:51 > 0:56:56experiencing the dizzying highs and worrying lows of buying at auction.
0:56:56 > 0:56:59So make sure you join us next time for more Homes Under The Hammer.
0:56:59 > 0:57:01- We'll see you then. - Goodbye.- Goodbye.
0:57:17 > 0:57:20Subtitles by Red Bee Media Ltd