0:00:01 > 0:00:04Hello! Have you ever thought of changing career?
0:00:04 > 0:00:07Perhaps having a go at something a bit different.
0:00:07 > 0:00:09Property developing appeals to many people
0:00:09 > 0:00:12looking for a change of lifestyle.
0:00:12 > 0:00:14But it's not always as easy as it sounds.
0:00:14 > 0:00:18One way to get a really good start is to visit your local auction.
0:00:44 > 0:00:47Well, the lure of the auction is very strong.
0:00:47 > 0:00:50But what should you spend your hard-earned money on?
0:00:50 > 0:00:53You might have your heart set on a particular place
0:00:53 > 0:00:54and then somebody else bids on it.
0:00:54 > 0:00:58It's best to research several properties and just keep your options open.
0:00:58 > 0:01:03Let's see what our buyers set their hearts on on today's programme.
0:01:05 > 0:01:09I'm in Cornwall, where this property needs a magic touch.
0:01:09 > 0:01:13Whoever designed this absolutely missed a trick!
0:01:14 > 0:01:17This place in Margate is beat up and broken down.
0:01:17 > 0:01:20But I can see past that to the beauty beneath.
0:01:20 > 0:01:23It really is an amazing house. I love it!
0:01:24 > 0:01:27And I'm in County Durham, and as you know,
0:01:27 > 0:01:30it's the simple pleasures that make me happy!
0:01:30 > 0:01:34Joy of joy. The first thing I see. The bathroom and loo is here.
0:01:35 > 0:01:37All these properties were sold at auction.
0:01:37 > 0:01:42We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:42 > 0:01:43Sold!
0:01:48 > 0:01:52Cornwall is a beautiful and varied county
0:01:52 > 0:01:55with some lovely villages and towns.
0:01:55 > 0:01:59Take Liskeard, for example, with independent shops, a mainline train station
0:01:59 > 0:02:01and bags of Victorian charm.
0:02:02 > 0:02:06Perched above Liskeard is the village of Pensilva and the property I'm here to see.
0:02:06 > 0:02:09How's that for a view?
0:02:09 > 0:02:11That's the edge of Bodmin Moor.
0:02:12 > 0:02:16Loved and feared cos of The Beast, in equal measure!
0:02:16 > 0:02:20But imagine waking up to that view every morning.
0:02:20 > 0:02:23That could be possible with the property that was up for auction.
0:02:23 > 0:02:27It's this two-bedroomed bungalow. It had a guide price of 75,000 quid.
0:02:27 > 0:02:30You'd buy it for the view alone, wouldn't you?
0:02:30 > 0:02:37- #- I can see for miles and miles and miles...- #
0:02:39 > 0:02:43OK, so it's not the best day to take in the views, I grant you,
0:02:43 > 0:02:46but you get the gist even through the mist.
0:02:46 > 0:02:50This two-bedroomed bungalow is on a corner plot with a garden and garage.
0:02:50 > 0:02:52So far, so good.
0:02:52 > 0:02:54But what about the inside?
0:02:54 > 0:02:59What have we got? A little porch area which is always nice.
0:02:59 > 0:03:00Keeps the cold out.
0:03:00 > 0:03:04The kitchen's there. It looks a little bit in need of updating
0:03:04 > 0:03:08but it's a reasonable size and it's on the corner, so you have a dual aspect.
0:03:08 > 0:03:12Living room there and then down this little corridor -
0:03:12 > 0:03:15bear in mind it's not a huge bungalow, it's only two bedrooms -
0:03:15 > 0:03:17a bathroom, again in need of updating.
0:03:17 > 0:03:22And a frosted window. Hmm, come back to that in a second.
0:03:22 > 0:03:25That's the first of the bedrooms, a reasonable size double,
0:03:25 > 0:03:29and then, a nice surprise, the second bedroom, a really good size.
0:03:29 > 0:03:33Even big enough to think about putting an en-suite in there.
0:03:33 > 0:03:36And the final bit of good news...
0:03:37 > 0:03:39..to the side there, a small garden.
0:03:40 > 0:03:42But..
0:03:42 > 0:03:44I've got this horrible feeling
0:03:44 > 0:03:48that whoever designed this absolutely missed a trick.
0:03:52 > 0:03:57For me, it's criminal that the only two rooms facing that amazing view
0:03:57 > 0:04:00are the kitchen and the bathroom with that frosted glass window.
0:04:00 > 0:04:05Now, I'm not suggesting that you parade yourselves to the neighbours when you shower,
0:04:05 > 0:04:10nor that a nice outlook when you do the dishes isn't very tempting.
0:04:10 > 0:04:14But the sitting room just doesn't make the most of it
0:04:14 > 0:04:18and neither does the second bedroom, where I reckon the window is on the wrong wall.
0:04:18 > 0:04:20Burst through here...
0:04:21 > 0:04:23..and you'd get that broad vista.
0:04:23 > 0:04:27Well, that gets us out of dire straits, at least.
0:04:28 > 0:04:30So what are we going to do?
0:04:30 > 0:04:34Cos that is the view you want to see, isn't it?
0:04:34 > 0:04:37And yet the house really does not make the most of it.
0:04:38 > 0:04:41So this wall holds the key, doesn't it?
0:04:41 > 0:04:44You want to have as much view from this wall as you possibly can.
0:04:44 > 0:04:46So what are the options?
0:04:46 > 0:04:50You could build out the land a bit and stick some stupendous conservatory
0:04:50 > 0:04:52or viewing room, whatever,
0:04:52 > 0:04:55full width of the property, panoramic glass.
0:04:55 > 0:04:58That would be fantastic. Whether the planners would allow it, I don't know.
0:04:58 > 0:05:03Maybe you could try something really modern with glass and stainless steel.
0:05:03 > 0:05:07Maybe not. Whatever, you've got to do something about it.
0:05:07 > 0:05:10At the moment, it's like owning a fine work of art
0:05:10 > 0:05:13and keeping it in a paper bag!
0:05:15 > 0:05:19You could look to re-jig the internal layout to take in those views,
0:05:19 > 0:05:22but you'd still end up with a smallish two-bed bungalow.
0:05:22 > 0:05:26I think this place is crying out for an extension.
0:05:26 > 0:05:30Even some decking would be a start to make the most of its prime position.
0:05:32 > 0:05:35We asked a local estate agent what he thinks of the bungalow,
0:05:35 > 0:05:39that went to auction with a guide price of £70,000.
0:05:40 > 0:05:45First impressions of the bungalow, in need of a bit of updating,
0:05:45 > 0:05:47but I think when that's complete,
0:05:47 > 0:05:51you'd have a very saleable property in a great location.
0:05:53 > 0:05:58What could this place sell for with its current two-bed layout?
0:06:00 > 0:06:02With a little bit of time and effort,
0:06:02 > 0:06:07I certainly would look, in good condition, to sell for £135,000.
0:06:08 > 0:06:11And what might it fetch on the rental market?
0:06:11 > 0:06:17You should expect to achieve rental in the region of £550 per calendar month.
0:06:17 > 0:06:22Well, a nice little bungalow, fantastic view and a pretty impressive guide price.
0:06:22 > 0:06:26Let's see who agreed when it went under the hammer.
0:06:26 > 0:06:30Guiding here £75,000. Anyone want to start me at 70?
0:06:30 > 0:06:35£70,000 to start. £70,000 seated here. And one more?
0:06:35 > 0:06:36We'll go in ones, nice and simple.
0:06:36 > 0:06:3971, now. 71. And one for two.
0:06:40 > 0:06:4271 at the back here. 72.
0:06:42 > 0:06:4472 with you. 73?
0:06:44 > 0:06:46Three. Four?
0:06:46 > 0:06:4874. Five?
0:06:48 > 0:06:5175 seated. 76.
0:06:51 > 0:06:52Seven?
0:06:52 > 0:06:54A chance for you to come back.
0:06:54 > 0:06:56First time, ladies and gentlemen. Second.
0:06:56 > 0:07:0077. 78. 79?
0:07:01 > 0:07:06No, it's OK. Don't worry. I'd love to take it, but I've got you at 78.
0:07:06 > 0:07:0979? No. Done now.
0:07:09 > 0:07:1180. Standing.
0:07:12 > 0:07:14At £80,000.
0:07:14 > 0:07:15£80,000 standing.
0:07:15 > 0:07:19There it is. Any advance on that? Against you and you.
0:07:19 > 0:07:21£80,000 standing.
0:07:21 > 0:07:24Are we sure we're all done here?
0:07:24 > 0:07:26£80,000.
0:07:26 > 0:07:28Quite sure all done?
0:07:28 > 0:07:30Yourself seated, yourself standing.
0:07:30 > 0:07:32£80,000 standing here.
0:07:34 > 0:07:35Sir, you all done?
0:07:35 > 0:07:39Shake of the head. All done. £80,000 to you.
0:07:41 > 0:07:44That successful bid of £80,000
0:07:44 > 0:07:46came from local man David,
0:07:46 > 0:07:50who attended the auction with his girlfriend, Natalie.
0:07:50 > 0:07:52David had a sheep farm nearby
0:07:52 > 0:07:56and although still involved there, has now diversified into holiday lets
0:07:56 > 0:07:59and sees this as a logical progression.
0:07:59 > 0:08:02I met the former farmer at the bungalow to find out more.
0:08:11 > 0:08:15- David, good to meet you. - Pleased to meet you. - Congratulations.- Thanks very much.
0:08:15 > 0:08:17Tell me why you wanted to buy the bungalow.
0:08:17 > 0:08:20It's a stepping stone. Something I've always wanted to do
0:08:20 > 0:08:25and it does interest me. I come from an agricultural background,
0:08:25 > 0:08:31so the work isn't hard for me to do, to get on with.
0:08:31 > 0:08:35Hopefully try to improve my quality of life at the same time.
0:08:35 > 0:08:39And enjoy it and see what happens.
0:08:39 > 0:08:41Why this area?
0:08:41 > 0:08:46- Pensilva, I went to the primary school when I was a lad.- Did you? - Yes.- Great.
0:08:46 > 0:08:52- So it's a lovely village. I know it's a safe bet.- Right.
0:08:52 > 0:08:57- To buy and sort of work from. - So why this particular property?
0:08:57 > 0:09:04Sunny. Apart from, obviously, today! It's from morning to dusk, the sun is shining here.
0:09:08 > 0:09:12'Well, maybe not today, Sonny Jim, but let's pretend for a moment!
0:09:17 > 0:09:19'So, what's the plan, David?'
0:09:20 > 0:09:22I've done my homework.
0:09:22 > 0:09:26I know some people turn up to these auctions
0:09:26 > 0:09:30and they haven't viewed it or read the legal packs.
0:09:30 > 0:09:32They haven't done no research.
0:09:32 > 0:09:36I'm the opposite. Half five in the morning, I'm out with a strong coffee,
0:09:36 > 0:09:39going through the legal pack, because it's important.
0:09:39 > 0:09:41You can lose money as well as actually gaining money.
0:09:41 > 0:09:47- Nothing's guaranteed.- So what are you going to do to sort it out, then?
0:09:47 > 0:09:52Complete refurb right through. New electrics. I'll put in a new gas central heating system.
0:09:52 > 0:09:55New bathroom suite. Revamp the kitchen.
0:09:55 > 0:09:59Any plans for any changes to the layout?
0:09:59 > 0:10:02If the property increased and went silly like it did years ago,
0:10:02 > 0:10:04then it would be viable to do an extension.
0:10:04 > 0:10:10Short-term, it's purely... I've got a nice gang of people that work for me, really nice,
0:10:10 > 0:10:13which is very important in today's market.
0:10:13 > 0:10:19The one advice I would give to anybody is people say, "Support your local community."
0:10:19 > 0:10:22And it's so important in this line of work.
0:10:27 > 0:10:30'Once renovated, David plans to let this place.
0:10:30 > 0:10:35'He's got a budget of £10,000 for a basic refurbishment.
0:10:35 > 0:10:37'But what's his timescale?'
0:10:37 > 0:10:39'I want to turn it round as quick as I can.'
0:10:39 > 0:10:42- So realistically, four weeks, five weeks, six weeks.- Oh!
0:10:42 > 0:10:46Straight in here, get out and get it on the rental market.
0:10:46 > 0:10:48Yeah, exactly. Yeah.
0:10:48 > 0:10:51I want to... It's the time of year, it's wet, it's mucky.
0:10:51 > 0:10:57- You know. Hopefully crack on and let's get this job done.- Great.
0:10:57 > 0:11:00- I wish you all the best with it. - Thank you.- I look forward to seeing how you get on.
0:11:00 > 0:11:02Thank you!
0:11:02 > 0:11:06The property seems to tick all the boxes for David.
0:11:06 > 0:11:08He knows the area and he's done his research.
0:11:08 > 0:11:12Hopefully, this will be the successful start of a new career for him.
0:11:12 > 0:11:17I'd love to see that extension on the side to make the most of those views,
0:11:17 > 0:11:19but maybe the figures do need to be looked at.
0:11:19 > 0:11:23If it's being rented out, it may not generate that much more money.
0:11:23 > 0:11:26Either way, exciting times ahead.
0:11:26 > 0:11:29Find out what happens later in the show.
0:11:39 > 0:11:42I grew up in Kent, not far from Margate.
0:11:42 > 0:11:45And I knew the town reasonably well.
0:11:45 > 0:11:47I also knew of its reputation.
0:11:47 > 0:11:50Faded grandeur, a bit down-at-heel
0:11:50 > 0:11:54and a general rough-round-the-edges feel to it.
0:11:54 > 0:11:58Now, well, how things have changed.
0:11:58 > 0:12:02The much-talked about regeneration is actually here for all to see.
0:12:02 > 0:12:07Boutiques and bars and bistros mean visitors to the Turner Gallery
0:12:07 > 0:12:09have somewhere to sit and shop.
0:12:09 > 0:12:11And I really feel that Margate
0:12:11 > 0:12:15has really, very nearly, well, made it!
0:12:19 > 0:12:25The Margate Renewal Partnership was set up to spearhead the regeneration of the town
0:12:25 > 0:12:29into a creative and cultural hub while embracing and celebrating its traditions.
0:12:30 > 0:12:34It seems incredible that just steps from the beach
0:12:34 > 0:12:37is a road that is still very ripe for renovation.
0:12:37 > 0:12:40The property I'm here to see
0:12:40 > 0:12:43is this end of terrace, currently split into two units.
0:12:43 > 0:12:47It had a guide price of just 70 to 75,000.
0:12:47 > 0:12:50But before we go in, I've got to comment on this.
0:12:50 > 0:12:53This is the site of Margate's Dreamland,
0:12:53 > 0:12:59which is currently being rebuilt at a cost of over 10 million quid.
0:12:59 > 0:13:00It's a great thing for Margate.
0:13:00 > 0:13:05But would you want to literally live right next door to it?
0:13:05 > 0:13:08Look at it this way. Most people love Disney.
0:13:08 > 0:13:11But would you want to move into The Magic Kingdom?
0:13:11 > 0:13:13I thought not!
0:13:15 > 0:13:17The theme park is a heritage site.
0:13:17 > 0:13:20The rollercoaster and other parts are Grade II listed.
0:13:20 > 0:13:24But I'm not sure the sights, and more particularly the sounds of the fairground
0:13:24 > 0:13:28are conducive to winding down after a hectic day.
0:13:28 > 0:13:31# I lost my heart at the fairground
0:13:31 > 0:13:34# To the boy on the swing machine
0:13:34 > 0:13:37# He caught my eye with his happy smile... #
0:13:37 > 0:13:40Certainly much bigger than I expected.
0:13:40 > 0:13:44In fact, a rather grand entrance.
0:13:44 > 0:13:46Some lovely wide cornicing up there,
0:13:46 > 0:13:49a fantastic-sized reception room.
0:13:49 > 0:13:53This is not what I was expecting. It's not in bad shape,
0:13:53 > 0:13:54you've got central heating here.
0:13:54 > 0:13:58A beautiful staircase. Look at this!
0:13:58 > 0:14:02Stripped again or painted, that will look lovely.
0:14:02 > 0:14:05Now I would have said second reception room,
0:14:05 > 0:14:09but it's quite clear that this once was a kitchen.
0:14:09 > 0:14:11Lots of pipe work over there, there's a boiler.
0:14:11 > 0:14:16But what I do love about this room are these amazing features. Look.
0:14:16 > 0:14:20I certainly didn't expect to see anything like this in here.
0:14:20 > 0:14:22I really like it. In fact,
0:14:22 > 0:14:24I'm quite excited about this property.
0:14:27 > 0:14:31There's no denying this property needs a great deal of work.
0:14:31 > 0:14:33And yet the character and charm is evident,
0:14:33 > 0:14:35even in this dilapidated condition.
0:14:38 > 0:14:41There may need to be some thought put into the bathroom layout.
0:14:41 > 0:14:45It's on the ground floor, and rather small for a family-sized house.
0:14:48 > 0:14:53Upstairs there are three bedrooms, and the master has a beautiful bay window.
0:14:56 > 0:14:58This place is like a ride on the waltzers!
0:14:59 > 0:15:02One minute I'm dizzy with excitement,
0:15:02 > 0:15:05and the next I'm nauseous at the amount of work that will have to be done.
0:15:07 > 0:15:09Next door is a single bedroom.
0:15:10 > 0:15:13And there's another good-sized double bedroom at the back.
0:15:15 > 0:15:19Now, wasn't this property supposed to be split into two units?
0:15:20 > 0:15:23Let's take a look at the ground floor.
0:15:24 > 0:15:28Now this is where it gets rather confusing
0:15:28 > 0:15:31because there's no separation from the property upstairs
0:15:31 > 0:15:34to this lower-ground one-bedroomed flat.
0:15:34 > 0:15:39Although it does have its own front door, there at the front of the property.
0:15:39 > 0:15:43I know it's been used as a one-bed flat.
0:15:43 > 0:15:47It's a great space. Look at this. You've got this wonderful large reception room,
0:15:47 > 0:15:50OK, it needs loads of work. You've got a kitchen at the back here.
0:15:50 > 0:15:56But it could be the most incredible kitchen/ breakfast room.
0:15:56 > 0:16:00It really is an amazing house. I love it!
0:16:02 > 0:16:04So, the options are,
0:16:04 > 0:16:07two units or one house.
0:16:07 > 0:16:11The property was unofficially converted into two units previously,
0:16:11 > 0:16:16so the new owner will need to apply to the planners for their stamp of approval
0:16:16 > 0:16:19if they want it to remain sub-divided.
0:16:20 > 0:16:23However, the application could be refused.
0:16:23 > 0:16:26The local council are currently resistant to such proposals
0:16:26 > 0:16:29as there's an over-abundance of flats in the area.
0:16:32 > 0:16:36We asked a local estate agent to give us his opinion on this property,
0:16:36 > 0:16:40which had a guide price of between 70 and 75,000.
0:16:42 > 0:16:45If you could get permission to keep it as two flats
0:16:45 > 0:16:49and then undergo the appropriate conversion works, it's worth it.
0:16:49 > 0:16:54You'd get a much better return in the two units than you would if it were put back into one large house.
0:16:55 > 0:16:59Let's talk figures. What could this place sell for once done up?
0:17:01 > 0:17:04If the property was fully renovated as one house,
0:17:04 > 0:17:06in today's market I would expect it to achieve
0:17:06 > 0:17:10somewhere between 170 and £175,000.
0:17:10 > 0:17:14If the property was split into two with a three-bed maisonette upstairs
0:17:14 > 0:17:16and a one-bed garden flat downstairs,
0:17:16 > 0:17:23I would expect them to achieve somewhere between 100 and 115,000 for the three-bed property,
0:17:23 > 0:17:29and the one-bed I would expect to achieve somewhere between 70 and 75,000.
0:17:30 > 0:17:32So if you get the thumbs up from the planners,
0:17:32 > 0:17:35you could make more money with it as two units.
0:17:35 > 0:17:37Does that go for rental, too?
0:17:37 > 0:17:40If the property were to be rented as one unit,
0:17:40 > 0:17:45I would expect it to achieve somewhere between 800 and £850 per calendar month.
0:17:45 > 0:17:52As a three-bedroom unit it would achieve somewhere around 575 to £600 a month.
0:17:52 > 0:17:55And as a one-bedroom unit with the garden,
0:17:55 > 0:18:00I would expect it to achieve somewhere around 400, maybe 425, a month.
0:18:02 > 0:18:08That means the purchaser could earn approximately £175 per calendar month extra
0:18:08 > 0:18:10if the property were sub-divided.
0:18:13 > 0:18:15I'm excited about Margate's future.
0:18:15 > 0:18:21But slightly less excited about the potential issue that property could create.
0:18:21 > 0:18:25It's a lot of house in an improving area, for a low guide price.
0:18:25 > 0:18:29With good yields but right next door to the new theme park.
0:18:29 > 0:18:33And it could be a bit of a rollercoaster to get it rented.
0:18:33 > 0:18:36Let's see who went for it anyway at the auction.
0:18:37 > 0:18:40Where do you want to start me? 70 to 75 guide.
0:18:40 > 0:18:41Start me at £70,000.
0:18:41 > 0:18:44£70,000? £65,000.
0:18:44 > 0:18:4765, I'm on the way. 65 I have.
0:18:47 > 0:18:5075 I've got in the front. 78 I've got.
0:18:50 > 0:18:53At 80. At 80 and two. 82.
0:18:53 > 0:18:5684 and six. 86.
0:18:56 > 0:19:0088 and 90 now. At 90 and two.
0:19:00 > 0:19:0192 and four?
0:19:01 > 0:19:0393?
0:19:03 > 0:19:06At £92,000 I've got, then, three rows back.
0:19:06 > 0:19:08For the first time. It's going to be sold.
0:19:08 > 0:19:11At £92,000 I've got for the second time.
0:19:11 > 0:19:14£92,000 for the third and final time.
0:19:14 > 0:19:16Sure you're all done?
0:19:16 > 0:19:19It's yours at 92,000. Well done.
0:19:21 > 0:19:25It was Liz who made the successful bid of 92,000.
0:19:25 > 0:19:28She attended the auction with her partner, who's a builder.
0:19:28 > 0:19:32Liz is a solicitor and part-time property developer.
0:19:33 > 0:19:36This house will be her biggest renovation yet.
0:19:36 > 0:19:43But she's looking forward to the challenge as she's fallen for the property's undoubted period charms.
0:19:58 > 0:20:02- Liz, congratulations.- Thank you. - What's the story behind you wanting to buy this place?
0:20:02 > 0:20:04Really, it all started just before the auction.
0:20:04 > 0:20:07I came along and had three viewings on it.
0:20:07 > 0:20:11- I was just blown away by the features, the size of it.- Yeah.
0:20:11 > 0:20:14Some of the period features have been taken out, which is a shame.
0:20:14 > 0:20:16But I intend to put some of them back in.
0:20:16 > 0:20:19Good. What sort of features do you hope to put back in?
0:20:19 > 0:20:22Some period fireplaces with some nice surrounds.
0:20:22 > 0:20:25Probably down here and in the main lounge upstairs.
0:20:25 > 0:20:29'I like that Liz wants to reinstate this property's period charm.
0:20:29 > 0:20:32'And when it comes to the amusement park next door,
0:20:32 > 0:20:37'it seems it's a case of fairground attraction rather than fatal attraction!'
0:20:37 > 0:20:40Do you think a lot of people are going to be put off by that?
0:20:40 > 0:20:45I think some people will be put off, having it right at the back of you.
0:20:45 > 0:20:48But they're also going to do landscaping areas and a parkland area,
0:20:48 > 0:20:55so at the moment it is just a concrete car park, and a redundant derelict site.
0:20:55 > 0:21:00So if they're going to improve the landscaping round it, hopefully that will still have appeal.
0:21:00 > 0:21:02Let's talk about the moratorium they have in Margate.
0:21:02 > 0:21:07They're not keen on turning any more of these buildings into separate dwellings and more flats.
0:21:07 > 0:21:12How's it going to work, because this hasn't been legally separated, has it?
0:21:12 > 0:21:14No. I know what you're saying.
0:21:14 > 0:21:18I think that's a difficult one. I think that's for a lot of new flats.
0:21:18 > 0:21:23There is some argument to say that, if I can show that there has been a change of use
0:21:23 > 0:21:25before the date that these rules came in,
0:21:25 > 0:21:29that there was actually a use here as a couple of flats.
0:21:31 > 0:21:34Liz hopes to have the work complete in four months.
0:21:34 > 0:21:39Her partner will do the majority of the work, bringing in specialist trades as required,
0:21:39 > 0:21:41which should keep her costs down.
0:21:43 > 0:21:47What sort of budget have you in mind to do the work?
0:21:47 > 0:21:50Hopefully, I'm looking at a maximum of £15,000.
0:21:50 > 0:21:53£15,000?! That has blown me away
0:21:53 > 0:21:59because this could be an incredible house but I'd think you'd need to spend more than that
0:21:59 > 0:22:04if you want to take it back to a beautiful period home with cornicing and fireplaces, a beautiful kitchen.
0:22:04 > 0:22:06That's what I'm hoping. I've budgeted about 15.
0:22:06 > 0:22:12That includes the fireplaces. The windows will be kept as they are.
0:22:12 > 0:22:19They'll just be refurbished. A local joiner is going to come in and restore them for me.
0:22:19 > 0:22:22He came the other day and said he'd put new glass in, new sash cords
0:22:22 > 0:22:27and plane them, then they just need to be painted.
0:22:27 > 0:22:31Liz, I love this house. It's got a great feeling. I can't wait to see what you do with it.
0:22:31 > 0:22:34- Well done.- Thank you.- Thank you.
0:22:38 > 0:22:40This is an incredible house.
0:22:40 > 0:22:42It would make a wonderful family home
0:22:42 > 0:22:44or great flats if that planning allows.
0:22:44 > 0:22:49Liz has really put her faith in Margate and her partner, who'll be doing the work.
0:22:49 > 0:22:53But all this work, for £15,000?!
0:22:53 > 0:22:55Is Liz being careful and cautious,
0:22:55 > 0:22:58or is she living in her own dreamland?
0:22:58 > 0:23:00You can find out later on in the show.
0:23:01 > 0:23:07Coming up: in County Durham, this property has a place for everything and everything has its place!
0:23:07 > 0:23:10This house, the layout, it just works!
0:23:11 > 0:23:16We return to Margate to find out how Liz got on with her renovation.
0:23:16 > 0:23:21To put back all the features and to restore it into someone's home, I'm really happy with.
0:23:22 > 0:23:28But first, in Cornwall, is David pleased with the transformation of his bungalow?
0:23:28 > 0:23:31I look back at it and have a glass of wine and think, "Well done, David!"
0:23:37 > 0:23:40Back now to Pensilva in Cornwall
0:23:40 > 0:23:44and this two-bedroom bungalow with amazing views.
0:23:44 > 0:23:49It was bought at auction for £80,000 by former farmer, David.
0:23:49 > 0:23:52He had already diversified into holiday lets
0:23:52 > 0:23:56and was planning to do the bungalow up and put it on the rental market proper.
0:23:56 > 0:23:59And it seemed he'd done his homework.
0:24:01 > 0:24:06Some people turn up to auctions and they haven't viewed it, or read the legal packs.
0:24:06 > 0:24:08They haven't done no research.
0:24:08 > 0:24:11I'm the opposite. Half five in the morning I'm out with a strong coffee
0:24:11 > 0:24:14going through the legal pack because it's important.
0:24:14 > 0:24:19You can lose money as well as gaining money. Nothing's guaranteed.
0:24:21 > 0:24:26David planned to spend between four and six weeks and around £10,000
0:24:26 > 0:24:28renovating the property before letting it out.
0:24:32 > 0:24:36Four and a half months after our first visit, we're back
0:24:36 > 0:24:38to see how David has got on.
0:25:03 > 0:25:05And boy, has David been busy here!
0:25:05 > 0:25:08He's done a lot of the work himself
0:25:08 > 0:25:10and has really thrown everything into this renovation.
0:25:11 > 0:25:15The reason why we've gone to town is, from experience,
0:25:15 > 0:25:19if you start something, it's really hard to patch, to bodge
0:25:19 > 0:25:21and it never really looks nice when you finish.
0:25:21 > 0:25:27So my personal view is, if you're going to do it, do it properly.
0:25:33 > 0:25:37David's replastered, redecorated and re-floored the bungalow.
0:25:37 > 0:25:42He's replaced the old warm air central heating with a combi boiler system,
0:25:42 > 0:25:47rejuvenated the bathroom, re-jigged the garage to make it a utility room
0:25:47 > 0:25:49and reconfigured the kitchen, too.
0:25:49 > 0:25:55There was an electric air system here in a cupboard, really dated,
0:25:55 > 0:25:59so we ripped that out which meant I could put a doorway here.
0:25:59 > 0:26:05Blocked that area and put an L-shaped kitchen in.
0:26:05 > 0:26:08That released space for a table and chairs in this room.
0:26:08 > 0:26:12I think it flows better now, and looks better now.
0:26:12 > 0:26:14So I'm really pleased with it.
0:26:15 > 0:26:19Remember that second bedroom with the window on the wrong wall?
0:26:19 > 0:26:23Well, good for David. He's gone and done just what I hoped he would.
0:26:41 > 0:26:44Because the views are so good here,
0:26:44 > 0:26:46it's one of the selling points for the property,
0:26:46 > 0:26:48I've added an extra window
0:26:48 > 0:26:52so it can be a little lounge, obviously bedroom.
0:26:52 > 0:26:55It creates more options for the bungalow
0:26:55 > 0:26:58and to maximise the lovely views.
0:26:58 > 0:27:01It certainly does that!
0:27:01 > 0:27:05And take a look at the new patio area outside the front door.
0:27:05 > 0:27:09Perfect for kicking back and soaking up the rays. Bliss!
0:27:14 > 0:27:17It has taken a lot longer than anticipated,
0:27:17 > 0:27:20but then again, he really did go to town on the renovation
0:27:20 > 0:27:23and did a superb job to boot.
0:27:23 > 0:27:28But has he kept to his budget? David estimated around ten grand to refurbish the property,
0:27:28 > 0:27:32but with such a high quality finish here, has he managed it?
0:27:33 > 0:27:38Because I've done it a higher spec, I wasn't worried about spending a bit more
0:27:38 > 0:27:40because it's going to add value to the property.
0:27:40 > 0:27:44So it's definitely up around the 15, 20,000.
0:27:44 > 0:27:48I've still got small bills coming in because it's in the process of being finished.
0:27:48 > 0:27:52So the final tally will be in due course.
0:27:55 > 0:27:59Let's be generous and say that David's spend here is £20,000.
0:27:59 > 0:28:03That takes his total outlay on the property, including purchase price,
0:28:03 > 0:28:05to 100,000.
0:28:05 > 0:28:09So, is David sticking to his plan of putting it on the rental market?
0:28:09 > 0:28:13Yeah, obviously, when I bought it, I was going to rent it.
0:28:13 > 0:28:18But now I've done so much work to the property, and the spec's quite high,
0:28:18 > 0:28:22I'm going to look into all avenues and take it all on board.
0:28:23 > 0:28:29Will the opinions of two local estate agents swing David one way or the other?
0:28:30 > 0:28:33What do they make of the revamped bungalow?
0:28:34 > 0:28:38Since the property's been purchased, it's undergone a complete transformation.
0:28:38 > 0:28:41The current owner has used some very high quality materials
0:28:41 > 0:28:44to bring it up to a first-class standard.
0:28:44 > 0:28:49My first impression of the property is that they've completed it to a very high standard.
0:28:50 > 0:28:52Well, I can't argue with that!
0:28:52 > 0:28:55What do they think the property could fetch on the resale market?
0:28:56 > 0:29:00If we were to put the property up for sale in the current market,
0:29:00 > 0:29:05we'd be looking at a guide price of between 135 and £140,000.
0:29:05 > 0:29:11I would recommend putting the property on the market for between £135,000 and £140,000
0:29:11 > 0:29:15to achieve in the region of £135,000.
0:29:15 > 0:29:18I'm extremely disappointed in those valuations.
0:29:18 > 0:29:22I've had independent valuations and they're all in excess of 150.
0:29:22 > 0:29:25Based on the quality of the property.
0:29:27 > 0:29:32He may be disappointed, but a sale at 135 or 140,000
0:29:32 > 0:29:36would mean a pre-tax profit of between 35 and £40,000,
0:29:36 > 0:29:39which is a pretty good reward for his efforts.
0:29:40 > 0:29:43What about the rental potential here?
0:29:45 > 0:29:47If we were to put the property up for rent,
0:29:47 > 0:29:52we would expect between 550 and £575 per calendar month.
0:29:52 > 0:29:53The rental market is really buoyant.
0:29:53 > 0:29:55There aren't enough properties out there.
0:29:55 > 0:30:00So you could put it on in the region of 550 and £575 per calendar month.
0:30:00 > 0:30:05I'm lucky enough that people in the area have shown interest
0:30:05 > 0:30:08and they've offered me, if I do want to rent,
0:30:08 > 0:30:09a much higher level than that.
0:30:09 > 0:30:11Let's look on the bright side.
0:30:16 > 0:30:19The two estate agents' valuations would give David a yield
0:30:19 > 0:30:21of between six and seven per cent.
0:30:21 > 0:30:24If he can get more, so much the better!
0:30:24 > 0:30:28But in the grand scheme of things, what does he think of what he's achieved here?
0:30:29 > 0:30:34The quality and finish of the property, I'll look back at it in a few months' time
0:30:34 > 0:30:39and have a glass of wine and think, "Well done, David!"
0:30:39 > 0:30:41Yes. Very well done, indeed!
0:30:43 > 0:30:47Like so many towns in this part of the north-east,
0:30:47 > 0:30:51Ferryhill in County Durham has a history based on coalmining.
0:30:51 > 0:30:56That's no longer, but bang up to date and there's new investment in this area.
0:30:56 > 0:30:59Loads of new-build detached houses are springing up
0:30:59 > 0:31:03and a recent one-million-pound grant was secured to improve local sports
0:31:03 > 0:31:05and youth facilities.
0:31:05 > 0:31:09So hopefully, it's looking like good news for Ferryhill's future.
0:31:10 > 0:31:12Well, it may once have been coal,
0:31:12 > 0:31:16but the only thing coming out of the ground in Ferryhill these days
0:31:16 > 0:31:20is the fruit and vegetables from these lovely allotments.
0:31:20 > 0:31:22How great to see them so well tended.
0:31:22 > 0:31:26And even better news. The property I'm here to see is just down here.
0:31:26 > 0:31:31How great to have that or trees or whatever as an outlook,
0:31:31 > 0:31:33rather than another property.
0:31:33 > 0:31:36And it gets better, because the guide price - wait for it -
0:31:36 > 0:31:39for this two-bedroomed mid-terrace
0:31:39 > 0:31:43was just ten to £20,000.
0:31:43 > 0:31:45Yes, ten to 20.
0:31:45 > 0:31:49Let's see if it's a fertile ground for investment.
0:31:50 > 0:31:53So, not only could that 10 to £20,000
0:31:53 > 0:31:56possibly secure you a rather handsome-looking house,
0:31:56 > 0:31:58at least from the outside,
0:31:58 > 0:32:02but you could also get a slice of the good life thrown into the mix.
0:32:02 > 0:32:05But with a price that low, and surroundings this attractive,
0:32:05 > 0:32:09surely there are some issues inside.
0:32:09 > 0:32:14So, for that kind of money, you're probably thinking you won't get very much. But you'd be wrong.
0:32:14 > 0:32:19It's just a thing of geography of the UK, I guess, and property prices.
0:32:19 > 0:32:24Stick this in some parts of London and you'd pay upwards of half a million quid for something similar.
0:32:24 > 0:32:27It's extraordinary, but that's the way it is.
0:32:27 > 0:32:31So what have we got? A lounge here, decent-enough size.
0:32:31 > 0:32:34Useful storage under the stairs.
0:32:34 > 0:32:37Then through to the rear of the property. There isn't a lot.
0:32:37 > 0:32:38But what there is, I like.
0:32:38 > 0:32:41There's a kitchen, a good size.
0:32:41 > 0:32:47You could definitely have a kitchen/ family play area or dining table there.
0:32:47 > 0:32:50Obviously needs complete refurbishment and I'm a bit concerned
0:32:50 > 0:32:54about signs of water ingress both in the roof and down here.
0:32:54 > 0:32:57But in the whole scheme of things, fairly trifling.
0:32:57 > 0:32:59A little patio/ courtyard area out there,
0:32:59 > 0:33:02so maybe you'd want to stick some patio doors in.
0:33:02 > 0:33:04Lots to play with. But as a starting point,
0:33:04 > 0:33:07what a lot of house for your money.
0:33:07 > 0:33:12Yes, it's a bit tired-looking, and that damp needs investigating.
0:33:12 > 0:33:15But I'm heartened by the absence of a bathroom downstairs,
0:33:15 > 0:33:19because if it's not here, it must be elsewhere.
0:33:22 > 0:33:26So, upstairs, and joy of joy, the first thing I see,
0:33:26 > 0:33:29the bathroom and loo is here, upstairs where it should be.
0:33:29 > 0:33:32Great. It could be at the expense of a bedroom.
0:33:32 > 0:33:35but to my mind, it really doesn't matter.
0:33:35 > 0:33:38You've still got two really nice-sized bedrooms
0:33:38 > 0:33:42and as it stands, simple though it is, this house,
0:33:42 > 0:33:45the layout, it just works.
0:33:45 > 0:33:47OK, so it's not spacious,
0:33:47 > 0:33:51but there is space for a small family or a couple of renters.
0:33:51 > 0:33:56And if you keep the costs down, it's the returns that really work for me.
0:33:57 > 0:34:01Well, if you've got the cash or can raise the finance,
0:34:01 > 0:34:06there are definitely some bargains to be had in the property world at the moment.
0:34:06 > 0:34:09But, of course, it's a big if.
0:34:09 > 0:34:13However, once you start looking at properties at this kind of level,
0:34:13 > 0:34:19ten to £20,000, maybe that's something you could lay your hands on
0:34:19 > 0:34:21in terms of savings that you might have.
0:34:21 > 0:34:24In terms of returns on investment,
0:34:24 > 0:34:28a property like this would rent out for £350 a month.
0:34:28 > 0:34:32So if you get it for £10,000, spend £10,000 doing it up,
0:34:32 > 0:34:34that's £20,000 investment.
0:34:34 > 0:34:36That's almost a 20% yield.
0:34:36 > 0:34:38It's staggering!
0:34:46 > 0:34:49The figures are really impressive for this place.
0:34:49 > 0:34:53And it seems that in these tricky, sticky financial times,
0:34:53 > 0:34:57it may well be that these smaller freehold investments are the way to go.
0:34:57 > 0:35:00So, with a guide price of ten to 20,000,
0:35:00 > 0:35:02I invited along a local property expert
0:35:02 > 0:35:04to see if he agrees.
0:35:04 > 0:35:08The house itself obviously needs a lot of updating.
0:35:08 > 0:35:11We're talking heating system, windows, wiring, et cetera.
0:35:11 > 0:35:14The walls need re-plastering throughout the property.
0:35:14 > 0:35:17New kitchen, new bathroom, so it's basically a shell.
0:35:17 > 0:35:21So once all the modernisation has been done,
0:35:21 > 0:35:23how much could this property let for?
0:35:24 > 0:35:31The property would rent, in good condition, for in the region of 350 to £400 per calendar month.
0:35:31 > 0:35:35And in the current climate, what could this house sell for
0:35:35 > 0:35:36once renovated?
0:35:36 > 0:35:39With improvements made to the property,
0:35:39 > 0:35:44I feel it could be worth £50,000, up to a maximum of £60,000.
0:35:44 > 0:35:48I think this is a super, solid little investment
0:35:48 > 0:35:50that might not make you rich quick,
0:35:50 > 0:35:54but will provide steady income over the years and help build up the bank balance.
0:35:54 > 0:35:56Or provide a great place to live.
0:35:56 > 0:35:59Let's see who agreed when it went under the hammer.
0:36:00 > 0:36:05It would be nice to start off on the guide. Get me straight in at ten?
0:36:05 > 0:36:06£10,000.
0:36:06 > 0:36:0812, do I see? I've got ten.
0:36:08 > 0:36:0912 at the back. And 14?
0:36:09 > 0:36:1415 and 16. And 17 and 18?
0:36:14 > 0:36:1618 and a half. 19?
0:36:16 > 0:36:1819 and a half. 20.
0:36:18 > 0:36:2120 and a half? 20 and a half.
0:36:21 > 0:36:2321. 21 and a half.
0:36:23 > 0:36:2622. 22 and a half.
0:36:26 > 0:36:2822 and a half. 23.
0:36:28 > 0:36:3123 and a half. 24.
0:36:31 > 0:36:3424 and a half? 25.
0:36:34 > 0:36:38At £25,000. Standing in the middle at 25,000.
0:36:38 > 0:36:3925 and a half. 26?
0:36:39 > 0:36:41Shake of the head this time.
0:36:41 > 0:36:4325,500.
0:36:43 > 0:36:47At 25,500. Take 250 from you, sir?
0:36:47 > 0:36:4825,750?
0:36:49 > 0:36:5125,750.
0:36:51 > 0:36:5426. Shake of the head now.
0:36:54 > 0:36:57At £25,750, then.
0:36:57 > 0:37:00For the first time. For the second time.
0:37:00 > 0:37:05At £25,750 for the third and final time.
0:37:05 > 0:37:08Sold. Thank you. Gentleman standing in the middle.
0:37:09 > 0:37:14The successful bid of £25,750
0:37:14 > 0:37:17was placed by husband and wife Mike and Hilary,
0:37:17 > 0:37:19who live just outside Newcastle.
0:37:19 > 0:37:23They recently retired from their family-run butcher's business.
0:37:25 > 0:37:27Mike, Hilary, good to meet you both.
0:37:27 > 0:37:29- And you.- Congratulations.- Thank you.
0:37:29 > 0:37:32- Thank you!- Tell me why you wanted to buy this little place.
0:37:32 > 0:37:38Really, I think it was more a question of my having to get out from under her feet!
0:37:38 > 0:37:40We retired a couple of years ago
0:37:40 > 0:37:43and at a bit of a loose end,
0:37:43 > 0:37:46- so a project was maybe what was required.- Oh, really?
0:37:46 > 0:37:48Hilary, is that the case?
0:37:48 > 0:37:50Yes!
0:37:50 > 0:37:53I've got lots of hobbies, and Mike's not got quite so many.
0:37:53 > 0:37:56He was always interested in property,
0:37:56 > 0:37:58so we thought now's a good time to do it.
0:37:58 > 0:38:02- How was the auction?- Quick! - It was very quick.
0:38:02 > 0:38:04My arm just kept going up!
0:38:04 > 0:38:07And I kept saying no!
0:38:07 > 0:38:09- Were you trying to stop him? - She did.
0:38:09 > 0:38:15- Really?- I think when we hit the 20,000, I was trying to say, "No!"
0:38:15 > 0:38:18And he just kept doing it!
0:38:18 > 0:38:21- You paid a bit more than the guide price.- Yes.- We did, indeed.
0:38:21 > 0:38:26- But at that level, it's still not a lot, is it?- No.
0:38:34 > 0:38:40Even though this property went for close to £6,000 over the maximum guide price,
0:38:40 > 0:38:42it's still a great deal.
0:38:42 > 0:38:48But other than the tempting price, why did Mike and Hilary buy here?
0:38:48 > 0:38:51- Do you know this area?- Not really. No, not really.
0:38:51 > 0:38:56But we just kept seeing houses here in the paper,
0:38:56 > 0:39:01and we thought they were a bit more affordable than the Newcastle area.
0:39:01 > 0:39:05So Mike came down and started looking round Ferryhill a bit,
0:39:05 > 0:39:07and talking to the agents.
0:39:07 > 0:39:10He decided right, let's go for it.
0:39:10 > 0:39:15So he'd seen the house inside before, but I hadn't seen it till after the auction.
0:39:15 > 0:39:19- Right. OK.- And it was just as he described it.
0:39:19 > 0:39:21I described it well, obviously.
0:39:21 > 0:39:24- How did you describe it? - "Absolute tip"!
0:39:24 > 0:39:27You haven't been around enough properties, mate, I'll tell you!
0:39:27 > 0:39:29Compared to some of the ones we see,
0:39:29 > 0:39:31this is quite nice!
0:39:31 > 0:39:34- Oh, well, we've done all right, then!- Yes!
0:39:34 > 0:39:38- It's got ceilings, and floorboards in most places.- Most places!
0:39:38 > 0:39:42'Don't get me wrong. This house does need work.
0:39:42 > 0:39:45'But as a blank canvas, it's in pretty good shape.
0:39:45 > 0:39:50'Mike and Hilary have ten to £12,000 as a budget for refurbishment.
0:39:50 > 0:39:52'How do they plan to tackle this job?'
0:39:52 > 0:39:57Talk me through exactly what you're going to do to it.
0:39:57 > 0:40:02Well, I need to replace the back gate, the front door, the back door,
0:40:02 > 0:40:04just to make the place secure.
0:40:04 > 0:40:07Then it's a question of getting the roof done, then the ceilings,
0:40:07 > 0:40:11plastering, then plumbing, electrics and so forth.
0:40:11 > 0:40:13What kind of timescale?
0:40:13 > 0:40:15I think it's a good six months, to be honest.
0:40:15 > 0:40:19The more I do, the more time it takes. It's as simple as that.
0:40:19 > 0:40:23But we're not desperate, you know. I know time is money,
0:40:23 > 0:40:27but in the case of this sort of amount of money you've spent,
0:40:27 > 0:40:29it's not too detrimental.
0:40:29 > 0:40:32- It isn't all about the money, anyway.- No, it isn't.
0:40:32 > 0:40:37- If you finish too quickly... - I'm back home.- He'll have to have another one!
0:40:43 > 0:40:46'I have no doubt that once this property's finished,
0:40:46 > 0:40:51'Hilary will be marching Mike back to an auction for another project to keep him busy!
0:40:52 > 0:40:55'But as far as this one's concerned, will she get her hands dirty?'
0:40:56 > 0:40:59What will your involvement in it be?
0:40:59 > 0:41:02Normally, I'd be there as the chief labourer.
0:41:02 > 0:41:07But because it's his project and I've got things that I want to do,
0:41:07 > 0:41:10I think he'll be left more on his own to do it himself.
0:41:10 > 0:41:14- Having said that, we will discuss kitchens and bathrooms.- Yes.
0:41:14 > 0:41:19And where things go! I'll not be able to keep out of it that much!
0:41:19 > 0:41:23- Great. Well, congratulations. - Thank you.- Thank you.
0:41:23 > 0:41:29- Look forward to seeing how you get on.- Lovely. Thanks, Martin. - Thank you very much, Martin!
0:41:30 > 0:41:35Well, this is the first go-slow restoration that I've come across.
0:41:35 > 0:41:39But let's hope Mike enjoys his new hobby for his and Hilary's sake.
0:41:39 > 0:41:42I know they paid a bit more than the guide price,
0:41:42 > 0:41:45but I still think they've got a cracking property for the money.
0:41:45 > 0:41:48Find out how they got on, whenever they get it sorted out,
0:41:48 > 0:41:50later in the show.
0:41:53 > 0:41:56We hope our buyers have been working away on their investments
0:41:56 > 0:41:58and making themselves a nice profit.
0:41:58 > 0:42:03But have they been busy or have they encountered unexpected delays?
0:42:03 > 0:42:07It's the moment of truth. Time to go back and find out.
0:42:09 > 0:42:12'Let's make our way back to Margate.
0:42:13 > 0:42:20'I viewed this three-storey property slap-bang next door to a historic amusement park.
0:42:24 > 0:42:28'I'd be far from amused if I was living next door to a rollicky rollercoaster
0:42:28 > 0:42:30'and crashing bumper cars,
0:42:30 > 0:42:33'but for solicitor and part-time property developer Liz,
0:42:33 > 0:42:35'that was part of the attraction.
0:42:38 > 0:42:45'She'd fallen for the property's period charm and paid £92,000 for it at auction.
0:42:45 > 0:42:50'She knew that the amusement park and surrounding area were undergoing a multi-million pound regeneration,
0:42:50 > 0:42:54'making this an ideal long-term investment opportunity.'
0:42:55 > 0:42:57What's the story behind you wanting to buy this place?
0:42:57 > 0:43:01I was just blown away. The features, the size of it.
0:43:01 > 0:43:04Some of the period features have been taken out, which is a shame,
0:43:04 > 0:43:05but I intend to put some of them back in.
0:43:05 > 0:43:10'So Liz was intent on restoring the period charm and character
0:43:10 > 0:43:14'to bring this run-down dilapidated property back to life.'
0:43:14 > 0:43:17Just over four months later, we're back.
0:43:37 > 0:43:40The property was renovated from top to bottom
0:43:40 > 0:43:44in only three months by Liz and her partner, who's a builder.
0:43:44 > 0:43:46They've already let it.
0:43:48 > 0:43:53When I purchased the house, I purchased it because I fell in love with the features.
0:43:53 > 0:43:56So it was never an option that I was going to sell it.
0:43:56 > 0:43:59We were lucky because we had somebody that was looking to rent a house
0:43:59 > 0:44:03and they offered us a good rental return and they're a nice family.
0:44:03 > 0:44:06So we took the option and rented it to them.
0:44:06 > 0:44:10The property had been unofficially converted into two units,
0:44:10 > 0:44:13but by renting the whole house to one family,
0:44:13 > 0:44:18Liz has avoided the complication of applying for planning permission.
0:44:19 > 0:44:22Let's begin our viewing of this property on the lower ground floor.
0:44:26 > 0:44:29Liz and her partner have worked wonders down here.
0:44:32 > 0:44:35It's been turned around pretty quickly for the new tenants
0:44:35 > 0:44:37considering the amount of hard graft that was needed.
0:44:39 > 0:44:41Quite a lot has happened to the house.
0:44:41 > 0:44:44It's had a full refurbishment, new flooring, been re-plastered.
0:44:44 > 0:44:49Gas central heating, the electrics. We got people in to certify them,
0:44:49 > 0:44:52so most of the work has been done by my partner, which is good.
0:44:54 > 0:44:57Onwards and upwards to the ground floor,
0:44:57 > 0:45:00where, once again, the quality craftsmanship is plain to see.
0:45:06 > 0:45:10The two rooms on this level are currently being used as bedrooms.
0:45:11 > 0:45:13Liz has been true to her word,
0:45:13 > 0:45:20reinstating features such as the fireplaces in keeping with the style and character of the house.
0:45:22 > 0:45:24They add a lovely focal point to the rooms
0:45:24 > 0:45:29and provide the perfect display mantel for your favourite toy cars!
0:45:30 > 0:45:34She's also had a helping hand in restoring the staircase.
0:45:36 > 0:45:39I've been so lucky in the help I've had with this house.
0:45:39 > 0:45:44My grandfather even made all the spindles. We were missing quite a few here
0:45:44 > 0:45:46and he went to the trouble of making them.
0:45:46 > 0:45:49He took a spindle and wanted to make them for me.
0:45:49 > 0:45:53So he actually went out and made them with his lathe.
0:45:53 > 0:45:55And then fitted them for me. So that was great.
0:45:58 > 0:46:03On the top floor, there were three derelict and dilapidated bedrooms.
0:46:15 > 0:46:19Again, careful attention has been paid to reinstating features
0:46:19 > 0:46:23to blend in with the overall style of this lovely house.
0:46:26 > 0:46:31Liz shocked me when she said she hoped to complete the work for just 15,000.
0:46:31 > 0:46:33So, how much has she spent?
0:46:34 > 0:46:38Initially, I thought we were going to spend 15,000.
0:46:38 > 0:46:42We've actually come in at about 12, so that's really good. We're very pleased with that.
0:46:45 > 0:46:46And so she should be!
0:46:48 > 0:46:53Liz's £12,000 spend, added to the £92,000 purchase price,
0:46:53 > 0:46:57makes a total investment of £104,000 here.
0:46:59 > 0:47:02I'm really happy with the house as it is.
0:47:02 > 0:47:06To put back all the features and put it back to what it was originally
0:47:06 > 0:47:10and to restore it into someone's home, I'm really happy with.
0:47:11 > 0:47:13We invited two local estate agents
0:47:13 > 0:47:15to give us their opinion on the place.
0:47:16 > 0:47:18Coming back for the second time,
0:47:18 > 0:47:21I'm impressed with the way they've made all the changes.
0:47:21 > 0:47:25I love the fact they've retained a lot of features, but added to them as well.
0:47:26 > 0:47:29Fantastic. Really, really good.
0:47:29 > 0:47:31They've done a really good job on the property.
0:47:31 > 0:47:33The finish is top quality as well.
0:47:35 > 0:47:38If the estate agents were marketing this property for rental,
0:47:38 > 0:47:42they believe it could achieve 800 to £850 per calendar month.
0:47:42 > 0:47:46Liz is actually letting the house for £800 per calendar month,
0:47:46 > 0:47:50giving her a terrific yield of just over nine per cent.
0:47:52 > 0:47:56Bearing in mind Liz's total outlay of 104,000,
0:47:56 > 0:47:59what's it now worth on the resale market?
0:48:00 > 0:48:05I would expect it to sell for somewhere between 170 and £175,000.
0:48:05 > 0:48:09We could sell this at £175,000.
0:48:09 > 0:48:13Those figures would give Liz a potential pre-tax profit
0:48:13 > 0:48:16of between 66 and 71,000.
0:48:16 > 0:48:19What does she make of that?
0:48:19 > 0:48:23I'm really happy with that cos that's way over above what I would have estimated.
0:48:23 > 0:48:24That's absolutely great.
0:48:33 > 0:48:37This property has proved to be a sound financial investment
0:48:37 > 0:48:40as well as a passion project for Liz.
0:48:40 > 0:48:43So will she be returning to an auction room?
0:48:44 > 0:48:46I'll definitely, definitely go to auction again.
0:48:46 > 0:48:52I really enjoyed it. I think if the price is right, the auction is the best place to be.
0:48:57 > 0:49:00It's time to return to Ferryhill in County Durham,
0:49:00 > 0:49:03where, across the road from these lovely allotments...
0:49:05 > 0:49:07..was this two-bedroomed terrace
0:49:07 > 0:49:11which had a guide price of only ten to £20,000.
0:49:15 > 0:49:20It was run down and in dire need of a little tender loving care.
0:49:21 > 0:49:23Hilary and her husband Mike
0:49:23 > 0:49:27paid £25,750 for the property at auction.
0:49:29 > 0:49:31Tell me why you wanted to buy this little place.
0:49:31 > 0:49:34It was more a question of my having to get out from under her feet.
0:49:34 > 0:49:36We retired a couple of years ago,
0:49:36 > 0:49:39and I'm at a bit of a loose end.
0:49:39 > 0:49:43- So a project was maybe what was required.- Really?- Yes.
0:49:43 > 0:49:45- Hilary, is that the case?- Yes!
0:49:45 > 0:49:49I've got lots of hobbies and Mike's not got quite so many.
0:49:49 > 0:49:52And he was always interested in property,
0:49:52 > 0:49:55so we thought now's a good time to do it.
0:49:57 > 0:49:59So, rather than put his feet up,
0:49:59 > 0:50:01Mike was under orders to get out from under Hilary's.
0:50:01 > 0:50:06Well, the big question is, has he got this property back on its feet?
0:50:06 > 0:50:09Ten months later, we're back to find out.
0:50:23 > 0:50:28It looks to me like Mike has been busier than ever in his retirement.
0:50:28 > 0:50:31But has he enjoyed the renovation?
0:50:31 > 0:50:34It's been quite a slog, actually, I think.
0:50:34 > 0:50:36Quite satisfying at the end,
0:50:36 > 0:50:39but it was rather a bit of a drudgery.
0:50:39 > 0:50:42And I wasn't much help!
0:50:42 > 0:50:46All I've done is a little bit of painting at the end.
0:50:47 > 0:50:52Every little bit helps. Hilary also lent a hand with the interior design.
0:50:52 > 0:50:55There weren't very many original features,
0:50:55 > 0:50:58so we wondered if we could do something with the fireplace.
0:50:58 > 0:51:04When Mike took all the plaster off, we realised there was a nice archway up here,
0:51:04 > 0:51:07full of rubble in here, cleared all that out.
0:51:07 > 0:51:09But then when we stood back and looked at it,
0:51:09 > 0:51:12the archway was a bit lopsided,
0:51:12 > 0:51:14and we thought it looked a bit dark.
0:51:14 > 0:51:17So we decided to go with a more modern look
0:51:17 > 0:51:19and make a little feature
0:51:19 > 0:51:24and use some of the old bricks to make a bit of a hearth, just as a nod to the original house.
0:51:27 > 0:51:31Mike began the renovation by knocking all the plaster off the walls
0:51:31 > 0:51:35and taking it back to the brick.
0:51:35 > 0:51:36A messy business indeed.
0:51:36 > 0:51:39We went to the tip twice a day
0:51:39 > 0:51:41with stuff that came off.
0:51:41 > 0:51:43It was dreadful!
0:51:44 > 0:51:48Two trips to the tip per day is no easy task,
0:51:48 > 0:51:52especially when, like Mike, you're a Mini driver!
0:51:52 > 0:51:56Sometimes I got to the tip and thought, "I've got loads in my Mini
0:51:56 > 0:51:59"and you've got a couple of bags in the back of your big car!"
0:51:59 > 0:52:01I said, "I'm doing really well."
0:52:01 > 0:52:04Let's take a look at the bedrooms.
0:52:10 > 0:52:12Mike did the majority of the work by himself,
0:52:12 > 0:52:17fixing the floorboards, timber-framing and plaster-boarding all the walls,
0:52:17 > 0:52:20hanging new doors, skirting and architraves,
0:52:20 > 0:52:22and laying the new carpet.
0:52:25 > 0:52:30He also fitted the new kitchen, and, always with an eye for detail,
0:52:30 > 0:52:33created a recess for the fridge freezer.
0:52:33 > 0:52:36But you can't please all the people all the time.
0:52:36 > 0:52:41I feel it's compromised the table area a little bit.
0:52:41 > 0:52:43But we agreed to differ about it in the end.
0:52:43 > 0:52:46- And he got his way.- Makes a change!
0:52:46 > 0:52:49I knew he would say that!
0:52:52 > 0:52:55Mike had hoped to complete the renovation in six months,
0:52:55 > 0:52:58but it took between nine and ten months.
0:52:59 > 0:53:01The couple had a £12,000 budget
0:53:01 > 0:53:05and he's done the work for just under 10,000.
0:53:05 > 0:53:09But living in Northumberland added another unbudgeted expense.
0:53:12 > 0:53:16Being 30 miles from home and taking about ten months to do it,
0:53:16 > 0:53:21the expenses of travelling are a good two grand on top of that.
0:53:23 > 0:53:27That's still bang on the budget of 12,000, so well done, Mike.
0:53:27 > 0:53:31Added to the purchase price of 25,750,
0:53:31 > 0:53:37that gives the couple a total outlay of £37,750.
0:53:37 > 0:53:41This property was purchased to keep Mike busy in his retirement,
0:53:41 > 0:53:44and it's certainly done that!
0:53:44 > 0:53:48It was good knowing he was busy and not bored.
0:53:48 > 0:53:52Otherwise, it's like having a three-year-old, trying to think of something to entertain them
0:53:52 > 0:53:54while you get on with your jobs!
0:53:56 > 0:54:00It's definitely been time well spent,
0:54:00 > 0:54:02but has it been money well spent?
0:54:03 > 0:54:07We invited two estate agents to give their opinions on this property.
0:54:10 > 0:54:15They've done an excellent job of the property. Attention to detail
0:54:15 > 0:54:16is exceptional.
0:54:16 > 0:54:20The finishings in the bathroom and kitchen are high standard.
0:54:20 > 0:54:24Overall, very well done to them.
0:54:24 > 0:54:26I think the owner's done a very good job of the refurbishment.
0:54:26 > 0:54:29He's thought of everything from windows,
0:54:29 > 0:54:36central heating. He's chosen modern fixtures and fittings which should appeal to a variety of people.
0:54:36 > 0:54:40The experts are impressed with Mike's handiwork.
0:54:41 > 0:54:44How much do they think the place could achieve on the rental market?
0:54:46 > 0:54:48To put the property on the rental market,
0:54:48 > 0:54:52I would anticipate a return of around £375 per calendar month.
0:54:52 > 0:54:55I would anticipate the rental value of this property
0:54:55 > 0:55:00to be between 350 and £375 per calendar month.
0:55:00 > 0:55:04Maybe slightly less than we thought, but it's in the ballpark.
0:55:04 > 0:55:10- And there are a lot of houses for rent.- Yes.- So people have been dropping their price.
0:55:10 > 0:55:13Yeah, so round about what we thought.
0:55:13 > 0:55:16Mike and Hilary plan to let the property.
0:55:16 > 0:55:18Those figures, if achieved,
0:55:18 > 0:55:21would give them a rental yield of between 11 and 12%.
0:55:21 > 0:55:26Bearing in mind their total outlay of £37,750,
0:55:26 > 0:55:29how much do the estate agents believe it could sell for?
0:55:30 > 0:55:35I would anticipate a marketing value of £49,950
0:55:35 > 0:55:38to hopefully achieve £45,000.
0:55:38 > 0:55:40If I put the property on the market for sale,
0:55:40 > 0:55:44I would anticipate to receive offers in the region of £55,000.
0:55:44 > 0:55:48I think probably the first one is more realistic.
0:55:48 > 0:55:53- Or somewhere between the two. - Between the two.- I don't think we'd get 55.
0:55:53 > 0:55:55No, you won't get 55.
0:56:04 > 0:56:09Since filming, Mike and Hilary have a tenant lined up who will pay
0:56:09 > 0:56:11£395 per calendar month.
0:56:11 > 0:56:15That is a super yield of around 12 to 13%.
0:56:15 > 0:56:18So, now the renovation is complete,
0:56:18 > 0:56:21is it finally time for Mike to put up his feet?
0:56:21 > 0:56:24I'm not quite sure what he'll do tomorrow!
0:56:24 > 0:56:26- There we go!- Have a rest!
0:56:26 > 0:56:29- Yes, he can have a little rest! - Thank you!
0:56:30 > 0:56:33And a well-earned one, at that!
0:56:36 > 0:56:42That's it for now. We'll have more properties and more enthusiastic buyers for you next time.
0:56:42 > 0:56:45So make sure you join us then for more Homes Under The Hammer.
0:56:45 > 0:56:46- See you then.- Goodbye!- Bye!
0:57:09 > 0:57:11Subtitles by Red Bee Media Ltd