0:00:02 > 0:00:03Hello. Now, whether you're looking
0:00:03 > 0:00:06for a lucrative investment or your dream home,
0:00:06 > 0:00:08the property auctions may have something for you.
0:00:08 > 0:00:10Even in the more challenging times,
0:00:10 > 0:00:15there are still bargains to be had as long as you avoid those pitfalls.
0:00:15 > 0:00:18So, join us now as we show you the ropes.
0:00:44 > 0:00:46Well, a nod of the head,
0:00:46 > 0:00:49a wave of the catalogue or a sly wink, it doesn't matter
0:00:49 > 0:00:52how you bid as long as you get the auctioneer's attention.
0:00:52 > 0:00:55Now, today, we'll be meeting some people who did just that,
0:00:55 > 0:00:58but what three properties did they choose?
0:00:58 > 0:00:59Let's find out.
0:01:00 > 0:01:03These Victorian terraces in Manchester look attractive
0:01:03 > 0:01:07from outside, but is this one as good inside, I wonder?
0:01:07 > 0:01:09No. Actually...
0:01:10 > 0:01:14In Kent, this auction lot makes a fabulous first impression.
0:01:14 > 0:01:17This really is a massive hallway!
0:01:17 > 0:01:20It is fantastic!
0:01:20 > 0:01:24And I am in Devon, where I ascend to giddy heights.
0:01:24 > 0:01:25Only the fit need apply.
0:01:25 > 0:01:28What an extraordinary garden!
0:01:31 > 0:01:33All these properties were sold at auction.
0:01:33 > 0:01:37We'll find out who bought them and what they paid for them
0:01:37 > 0:01:39when they went under the hammer.
0:01:48 > 0:01:53# I'm not so sure and yet I know. #
0:01:53 > 0:01:56I am ten minutes outside of Manchester City centre,
0:01:56 > 0:01:58in an area called Gorton.
0:01:58 > 0:02:01But this isn't the first time the area has been on television
0:02:01 > 0:02:04because it was one of the locations for the TV drama Shameless.
0:02:04 > 0:02:06Well, over the last few years,
0:02:06 > 0:02:09there has been many millions of pounds poured into the area,
0:02:09 > 0:02:13not least in the redevelopment of the shopping area here.
0:02:13 > 0:02:14So, that is a good sign.
0:02:19 > 0:02:23Well, the area has lots of houses like these - Victorian terraces
0:02:23 > 0:02:27built around the 1900s, and jolly nice homes they can make, too.
0:02:27 > 0:02:31What I am here to see had a guide price of 25,000 quid.
0:02:31 > 0:02:35Well, it certainly looks like it needs a bit of tender loving care
0:02:35 > 0:02:37from the outside, however,
0:02:37 > 0:02:40this property is slightly more than it first appears.
0:02:42 > 0:02:46It does look like a standard Victorian house,
0:02:46 > 0:02:51albeit a rather dilapidated one, but is that what we'll find inside?
0:02:51 > 0:02:53No, actually, you know what, it isn't.
0:02:53 > 0:02:55It's flats. In fact, two flats.
0:02:55 > 0:02:58This is the entrance door to the upstairs flat
0:02:58 > 0:03:02and this is the entrance door to the ground-floor flat.
0:03:02 > 0:03:05Nice size. Love the front there, big bay window,
0:03:05 > 0:03:10lots of light flooding in, that doesn't look too bad.
0:03:10 > 0:03:12Oh, dear. Famous last words.
0:03:12 > 0:03:15Walk towards the rear of the property
0:03:15 > 0:03:19and I am starting to see some very worrying signs of problems.
0:03:19 > 0:03:22That is extraordinarily damp.
0:03:22 > 0:03:26Let's continue through to the kitchen.
0:03:26 > 0:03:31More mould on the walls there. And, um, all the... Wow!
0:03:31 > 0:03:33All the walls feel really, really almost wet.
0:03:33 > 0:03:36And if you look at the ceiling there, it's like
0:03:36 > 0:03:39it's collapsing in. Latest design, Swedish flat pack.
0:03:39 > 0:03:45Do you like that? Clearly, the kitchen needs...a bit of work.
0:03:45 > 0:03:49But that is tiny in comparison to...
0:03:49 > 0:03:52what I think could be some really horrible problems.
0:03:52 > 0:03:54I wonder where I can find out more.
0:03:54 > 0:03:57# I'm trouble Yeah, trouble now
0:03:57 > 0:04:01# I'm trouble, y'all I disturb my own town
0:04:01 > 0:04:03# I'm trouble Yeah, trouble now
0:04:03 > 0:04:08# I'm trouble, y'all I've got trouble in my town. #
0:04:08 > 0:04:10There really is a whole lot of trouble here,
0:04:10 > 0:04:14from broken windows and damp to no central heating.
0:04:14 > 0:04:17This flat needs to be completely taken back to brick
0:04:17 > 0:04:18and started again.
0:04:18 > 0:04:23Well, up the alarmingly steep staircase to the first floor
0:04:23 > 0:04:25and the second flat.
0:04:25 > 0:04:27And you know what, it's not getting any better.
0:04:27 > 0:04:30In fact, in some ways, it's getting even worse.
0:04:30 > 0:04:32Look at that.
0:04:32 > 0:04:34Somebody has taken off the plasterboard ceiling
0:04:34 > 0:04:38so you can see right through to the loft. There is no underfelt.
0:04:38 > 0:04:40In fact, I can see a whole there.
0:04:40 > 0:04:42I can see daylight coming through.
0:04:42 > 0:04:44So, obviously, the roof is in a right old state.
0:04:44 > 0:04:47Water has been pouring in over goodness knows
0:04:47 > 0:04:50what kind of length of time. It has made this wall very damp.
0:04:50 > 0:04:53It has gone through the floorboards, down to the floor below.
0:04:53 > 0:04:56And the wall below, as well.
0:04:56 > 0:04:59Who knows what kind of damage that has created in terms of rot
0:04:59 > 0:05:02or whatever. And again, up here,
0:05:02 > 0:05:05there's just this feeling that something isn't quite right.
0:05:05 > 0:05:06You know what?
0:05:06 > 0:05:10I really am not getting a good feeling about this place.
0:05:10 > 0:05:13Yes, there is so much damp
0:05:13 > 0:05:17and rot that I suspect the roof has been leaking for some time,
0:05:17 > 0:05:20which has left the place in a pretty bad state.
0:05:20 > 0:05:23The room sizes are OK,
0:05:23 > 0:05:24but the shower room...
0:05:24 > 0:05:28Well, that's the stuff of nightmares.
0:05:28 > 0:05:31And the shocks continue outside.
0:05:31 > 0:05:34What isn't good news at all
0:05:34 > 0:05:38is what I've found at the rear of the house,
0:05:38 > 0:05:42which is clearly an absolute disaster,
0:05:42 > 0:05:44much worse than I thought.
0:05:45 > 0:05:47What has been going on, my guess,
0:05:47 > 0:05:51is that one of the drains here has collapsed.
0:05:51 > 0:05:54And all the water that has been pouring down from the ceiling,
0:05:54 > 0:05:55from the sewer pipe,
0:05:55 > 0:05:58from wherever over the years has gone into the ground
0:05:58 > 0:06:02and the whole of this rear is basically falling down.
0:06:02 > 0:06:04You can see the bricks have all gone.
0:06:04 > 0:06:07The windows, all the bits around the windows.
0:06:07 > 0:06:08My first thought
0:06:08 > 0:06:10is that though whole of this rear wall
0:06:10 > 0:06:13is going to have to be taken down.
0:06:13 > 0:06:14Suddenly...
0:06:16 > 0:06:18..that's not good, is it?
0:06:18 > 0:06:22You don't want the rear wall of the property going the same way
0:06:22 > 0:06:25as the garden wall, which has already collapsed.
0:06:25 > 0:06:28You can only reach the back garden through a gated area at the moment,
0:06:28 > 0:06:32so the true horrors of this place could have gone unnoticed
0:06:32 > 0:06:34by an unsuspecting bidder.
0:06:34 > 0:06:38But bearing in mind the low guide price of £25,000,
0:06:38 > 0:06:41it could still work as an investment.
0:06:41 > 0:06:44Well, setting aside the obvious issues of the property
0:06:44 > 0:06:45just for one moment,
0:06:45 > 0:06:48let's take a bigger-picture view of what we should do with it.
0:06:48 > 0:06:51Should we keep it as two flats or convert it back into one property?
0:06:51 > 0:06:53That comes down to what you plan to do with that.
0:06:53 > 0:06:57Renting it out, you'll probably get more money keeping it as two flats.
0:06:57 > 0:07:00But as a resale, you're going to get more
0:07:00 > 0:07:02from converting it back into one house.
0:07:02 > 0:07:05So, as I said, it depends what you plan to do with it.
0:07:07 > 0:07:09In order to put some numbers on those options,
0:07:09 > 0:07:13we asked along a local estate agent to hear his expert advice
0:07:13 > 0:07:15on this property
0:07:15 > 0:07:17with its guide price of £25,000.
0:07:17 > 0:07:19Well, obviously, this place is going to need
0:07:19 > 0:07:21full renovation.
0:07:21 > 0:07:24I mean, totally rip it down and start again.
0:07:24 > 0:07:26The property hasn't been looked after at all.
0:07:26 > 0:07:28It probably has even stood empty for a while.
0:07:28 > 0:07:30Yes, it is a state all right.
0:07:30 > 0:07:34But what's the best way to revive its fortunes?
0:07:34 > 0:07:38I think if you turn this property back into a two-bedroom house,
0:07:38 > 0:07:41you would be looking at putting the property on the market
0:07:41 > 0:07:43for £75,000.
0:07:43 > 0:07:45Two one-bedroom flats,
0:07:45 > 0:07:49I think you would be looking at around about £35,000 per flat.
0:07:49 > 0:07:53Despite its condition, it could still be
0:07:53 > 0:07:55a viable resale proposition,
0:07:55 > 0:07:57particularly as a two-bedroom house.
0:07:57 > 0:07:59But what about rental?
0:07:59 > 0:08:03Rental valuations on a one-bedroom flat in this area,
0:08:03 > 0:08:07you're looking, I would say, £300 to £325 per calendar month.
0:08:07 > 0:08:10You turn it back into a two-bedroom house,
0:08:10 > 0:08:13you'd be looking at renting the property out within the region
0:08:13 > 0:08:16of £450 to £475 per calendar month.
0:08:16 > 0:08:20So, for an experienced builder or developer,
0:08:20 > 0:08:24buried under the rubble, there could be a nice little earner.
0:08:25 > 0:08:30Well, your initial reaction on this one might be don't touch it
0:08:30 > 0:08:33with a barge pole, and to a degree, you might be right.
0:08:33 > 0:08:36However, it all comes down to how much you pay for this property.
0:08:36 > 0:08:40Because if you get it at a good enough price and allow money to do
0:08:40 > 0:08:44all the major works that's needed, then you could still be quids in.
0:08:44 > 0:08:47It's all about making sure you know what you are taking on.
0:08:47 > 0:08:50Let's find out who bought it when it went under the hammer.
0:08:52 > 0:08:54At £25,000, do I see a bid?
0:08:54 > 0:08:56At £25,000.
0:08:56 > 0:08:58I see 20 on my right.
0:08:58 > 0:08:59At £20,000.
0:08:59 > 0:09:02Who is going to give me 21? At 21, new bid at the back.
0:09:02 > 0:09:0521,000. I see 22 on my right. 23.
0:09:05 > 0:09:10It's going to you. 23, yes? No? 24? At 24,000 then. 25?
0:09:10 > 0:09:1525. 26? At 26,000. At 27?
0:09:15 > 0:09:19At 26 on my right then, 27 I'm looking for. 27 I have, new bid.
0:09:19 > 0:09:2127,000. 28?
0:09:21 > 0:09:24At 27,000, 28? 28,000.
0:09:24 > 0:09:2529? At 29,000.
0:09:25 > 0:09:28Do I see 30? 30,000 may I say at the back?
0:09:28 > 0:09:30At £30,000.
0:09:30 > 0:09:3331, he's back in at 31,000. Do I see 32?
0:09:33 > 0:09:36He's in the market at 32,000. 33?
0:09:36 > 0:09:39No. At 32,000 then. At 32.5 anywhere?
0:09:39 > 0:09:42It will be sold at 32,000. 32.5.
0:09:42 > 0:09:4633, may I put you in? At 33,000. 33.5? 33.5.
0:09:46 > 0:09:5034 at the rear, I'm looking for. No. At 33,500 on my right,
0:09:50 > 0:09:54gentlemen's bid. At £33,500, it will be sold.
0:09:54 > 0:09:5834. At 34,000. 34.5 may I say on my left?
0:09:58 > 0:10:00New bid, 34.5. 35.
0:10:00 > 0:10:03At 35,000. 35.5 anywhere?
0:10:03 > 0:10:0835.5, new bid at the back. 36. At 36. 36.5?
0:10:08 > 0:10:10At 36.5. 37?
0:10:10 > 0:10:15At 37. At 37.5? No. At £37,000 then, for the first time.
0:10:15 > 0:10:19At £37,000 for the second time.
0:10:19 > 0:10:21Are we all done it £37,000?
0:10:22 > 0:10:27The final bid of £37,000 came from property developer Nasser.
0:10:27 > 0:10:31He has done a number of his own developments in the past, but having
0:10:31 > 0:10:36worked abroad for a few years, this is his first in the UK since 2004.
0:10:36 > 0:10:40This one is a collaboration with a business partner.
0:10:40 > 0:10:41Congratulations.
0:10:41 > 0:10:44- Thank you very much.- Tell me why you wanted to buy this place.
0:10:44 > 0:10:46Uh... It's a challenge.
0:10:46 > 0:10:49I didn't check on it all.
0:10:49 > 0:10:54It does need a lot of work, probably re-building from new.
0:10:55 > 0:10:57From what I've seen.
0:10:57 > 0:10:59So, let me just check, did you go around the back?
0:10:59 > 0:11:04I didn't because you couldn't get any access from inside the house.
0:11:04 > 0:11:05- Yes.- Right?
0:11:05 > 0:11:10And the gates were locked, so I had no chance to check in the back.
0:11:10 > 0:11:12So, that must have been a bit of a shock for you then.
0:11:12 > 0:11:15It is and it isn't because in the past, I bought houses
0:11:15 > 0:11:19at no sight and my friends were telling me I'm crazy.
0:11:19 > 0:11:23I bought some for 9,000, I've sold them at 100,000.
0:11:23 > 0:11:24- Oh, wow!- So, I wasn't really crazy.
0:11:24 > 0:11:27You never know. It's the market, that's the thing.
0:11:27 > 0:11:29You never know what happens with the market.
0:11:29 > 0:11:32Nasser has done total rebuilds before
0:11:32 > 0:11:35and isn't phased by the amount of work here.
0:11:36 > 0:11:38So, what are you going to have to do to sort it out?
0:11:38 > 0:11:43I'll have to have new roof, new windows, new central heating,
0:11:43 > 0:11:46- take the back walls down. - Completely?- Completely.
0:11:46 > 0:11:50Put a foundation, rebuild them. A kitchen.
0:11:50 > 0:11:52It's like rebuilding a new house, really.
0:11:54 > 0:11:58Nasser also intends to restore the property into a single house,
0:11:58 > 0:12:02as he believes that will maximise its sale value.
0:12:02 > 0:12:05What is the budget for all of this, then?
0:12:05 > 0:12:07When I first bought it,
0:12:07 > 0:12:11I thought I'd probably spend between 13, 15, 17,000.
0:12:11 > 0:12:16- But looking at it now, I will probably go up to 25,000.- 25.
0:12:16 > 0:12:18And given what you paid for it,
0:12:18 > 0:12:20is there still profit to be made for you?
0:12:20 > 0:12:24From what I gather, probably just under 10,000.
0:12:24 > 0:12:26Just under 10. Is that OK?
0:12:26 > 0:12:29It depends how much I save, really, on the work.
0:12:29 > 0:12:32- Yeah, it's OK.- And for you then, what is next on the agenda?
0:12:32 > 0:12:36- Are you going to do more?- Yeah, but I'll be more careful next time.
0:12:37 > 0:12:40- I'll be more careful, yeah. - Well, listen, congratulations.
0:12:40 > 0:12:42At least you're smiling.
0:12:42 > 0:12:45- Thank you very much. - Nice to meet you.- Thanks.
0:12:45 > 0:12:47# You got a keep smiling You got a keep trying
0:12:47 > 0:12:51# Cos things can't... Things can't get much worse. #
0:12:51 > 0:12:55Well, I think this sorry-looking terrace is now in safe hands,
0:12:55 > 0:12:58and thank goodness Nasser is still smiling.
0:12:58 > 0:13:02How will he get on? You can find out later in the show.
0:13:04 > 0:13:07For the next property that went to auction,
0:13:07 > 0:13:10I've come to Chatham, one of Kent's Medway towns.
0:13:10 > 0:13:16I'm here to see an attractive double bay-fronted detached property
0:13:16 > 0:13:19situated close to the busy town centre.
0:13:19 > 0:13:22It's on a busy road, as well, but I know similar properties
0:13:22 > 0:13:26on this road are on the market for £700,000.
0:13:26 > 0:13:30And so the guide price for this auction lot really caught my eye.
0:13:30 > 0:13:36It was set at just £200,000 to £210,000!
0:13:36 > 0:13:38What's wrong with it?
0:13:40 > 0:13:43OK, the hedge needs clipping, but from the outside,
0:13:43 > 0:13:45things are off to a really good start.
0:13:45 > 0:13:48It's an imposing double-fronted detached property,
0:13:48 > 0:13:52which was used as a medical centre until recently.
0:13:52 > 0:13:56Judging by the exterior, it appears in good health.
0:13:56 > 0:14:00Well, that really is my ideal looking property from the outside,
0:14:00 > 0:14:04but the inside just blows me away with how huge it is!
0:14:04 > 0:14:07I mean, this really is a massive hallway!
0:14:07 > 0:14:09It's fantastic!
0:14:09 > 0:14:11Lots of rooms running off it.
0:14:11 > 0:14:15Look beyond the woodchip wallpaper, the strip lighting
0:14:15 > 0:14:18and the fire extinguisher signs, it's quite amazing.
0:14:18 > 0:14:23# Take my breath away. #
0:14:24 > 0:14:26This property has great period character.
0:14:26 > 0:14:29It really is a vision.
0:14:29 > 0:14:32On the ground floor, are five rooms.
0:14:32 > 0:14:36This large room was used as an office and reception.
0:14:36 > 0:14:38And across the grand hall,
0:14:38 > 0:14:41is what I think would have been the waiting room.
0:14:44 > 0:14:46More character features looking at you as soon as
0:14:46 > 0:14:49you walk into this room. Look at this lovely fireplace!
0:14:49 > 0:14:53There is a beautiful, old bay window down here.
0:14:53 > 0:14:55Well, it will be once all of this is off.
0:14:55 > 0:14:58But this is a commercial property and I think it is fairly evident
0:14:58 > 0:15:00from looking around - strip lighting...
0:15:00 > 0:15:04It was used as a medical day centre and has D1 usage,
0:15:04 > 0:15:08but I've got some really good news because planning has already
0:15:08 > 0:15:11been granted for the change of use to residential.
0:15:11 > 0:15:14And so, it will have a C3 classing.
0:15:14 > 0:15:17Now, that really is what you want to hear
0:15:17 > 0:15:20and it certainly lightens the load when it comes to developing.
0:15:20 > 0:15:24Whoever takes this project on can crack on with the work
0:15:24 > 0:15:25straightaway.
0:15:25 > 0:15:29So, who is going to buy this property? Any suggestions?
0:15:29 > 0:15:33# I've got so many new ideas
0:15:33 > 0:15:37# I've got so many new ideas. #
0:15:37 > 0:15:40Whoever takes this on will have a lot of property on their hands,
0:15:40 > 0:15:43because we're still not finished on the ground floor.
0:15:43 > 0:15:47Further down the hall, there is what looks like a consulting room.
0:15:47 > 0:15:51There's a further room, which leads out onto a conservatory
0:15:51 > 0:15:55with beautiful, original floor tiles.
0:15:55 > 0:15:58But from the outside, it looks in a poor state.
0:15:59 > 0:16:02Finally, there's a kitchen.
0:16:02 > 0:16:05Time now to investigate the first floor.
0:16:08 > 0:16:12Up the grand staircase, past this amazingly decorative window,
0:16:12 > 0:16:15is yet more accommodation up here.
0:16:17 > 0:16:18# How do you like it?#
0:16:18 > 0:16:22Two bay-fronted former consulting rooms
0:16:22 > 0:16:26at the front and a couple of offices at the back overlook the garden.
0:16:27 > 0:16:30And a fifth, slightly smaller room.
0:16:31 > 0:16:35So, enough potential bedrooms for a large family.
0:16:35 > 0:16:39And it's great to see so many fireplaces have survived.
0:16:40 > 0:16:44Upstairs, this property boasts five bedrooms.
0:16:44 > 0:16:48Knowing this area pretty well, I would have a concern here.
0:16:48 > 0:16:51A big, substantial property like this is amazing,
0:16:51 > 0:16:54and I have loved walking around here today.
0:16:54 > 0:16:58It would be an exciting project to take on, but as a developer,
0:16:58 > 0:17:01you always have to think about your target market.
0:17:01 > 0:17:07Is there a demand for a big detached house like this in this area?
0:17:07 > 0:17:10If this were mine, I would be inclined to half my risk,
0:17:10 > 0:17:13divide this house into two dwellings.
0:17:13 > 0:17:15This, of course, is subject to planning permission,
0:17:15 > 0:17:18but it is definitely something to think about,
0:17:18 > 0:17:20especially in the current market.
0:17:23 > 0:17:26So, the house isn't at the prime end of the street,
0:17:26 > 0:17:30where similar sizes of property sell for as much as 100,000 more.
0:17:31 > 0:17:34But this place has plenty of potential
0:17:34 > 0:17:37and its appeal doesn't stop inside.
0:17:37 > 0:17:41You have got quite a substantial garden out here.
0:17:41 > 0:17:45Now, if you did think about dividing that house into separate dwellings,
0:17:45 > 0:17:48there would still be more than enough garden to go around.
0:17:48 > 0:17:50You could put a fence up in the middle here
0:17:50 > 0:17:54and you'd still be left with generous outside space.
0:17:54 > 0:17:56But now, look at this.
0:17:56 > 0:17:59You're thinking, "Oh, great, just a bit more land."
0:17:59 > 0:18:02But now, it is much more than that. Much more!
0:18:02 > 0:18:05Because there is vehicular access,
0:18:05 > 0:18:08so you could think about building a property out there
0:18:08 > 0:18:10with its own independent entrance.
0:18:10 > 0:18:13Again, subject to all the necessary planning permissions
0:18:13 > 0:18:17being obtained, but how exciting is that?
0:18:19 > 0:18:20# How you like it?
0:18:20 > 0:18:21How you like it? #
0:18:21 > 0:18:26We invited a local estate agent to give us his opinion on this house,
0:18:26 > 0:18:31which had a guide price of between 200 and 210,000.
0:18:31 > 0:18:34The development opportunities here are immense, really.
0:18:34 > 0:18:37I could see the possibility of one unit.
0:18:37 > 0:18:38Very nice family home.
0:18:38 > 0:18:42Two individual units, possibly a number of flats,
0:18:42 > 0:18:44you know, subject to planning.
0:18:44 > 0:18:48If the new owner was to develop this as a five bedroom house,
0:18:48 > 0:18:51how much could it be worth once renovated?
0:18:52 > 0:18:58I could sell this house fully completed in the region of 500,000
0:18:58 > 0:19:03to maybe £750,000 depending on the level of finish.
0:19:03 > 0:19:08So, as one house, it could perhaps fetch around £2,000
0:19:08 > 0:19:11per calendar month on the rental market.
0:19:11 > 0:19:14But the possibilities don't end there.
0:19:14 > 0:19:18If you were to develop this and turn this into two three-bedroom
0:19:18 > 0:19:21properties, done to a good standard,
0:19:21 > 0:19:25you could ask for 200 to £250,000 per property.
0:19:25 > 0:19:28Well, I think I have made it clear what I think.
0:19:28 > 0:19:30This is a fabulous development opportunity.
0:19:30 > 0:19:33You could have three houses for the price of one
0:19:33 > 0:19:37if planning permission went your way. That really could happen,
0:19:37 > 0:19:41although this would be an amazing family house to live in!
0:19:41 > 0:19:45Let's see who wanted it when it went to auction.
0:19:46 > 0:19:51200 to 210,000, the guide. Start me at 200. 200 I have.
0:19:51 > 0:19:54That's what I like to see, positiveness.
0:19:54 > 0:19:57At 200,000, 210 is bid. And 220.
0:19:57 > 0:20:00220 I'm bid. And 30. 230.
0:20:00 > 0:20:03And 240. 240.
0:20:03 > 0:20:05And 250? 250 is bid.
0:20:05 > 0:20:07And 260?
0:20:07 > 0:20:09255 in a fresh place.
0:20:09 > 0:20:14Standing by the sign at 255,000. 260 do I see?
0:20:14 > 0:20:18260. 262. 265?
0:20:18 > 0:20:23265. And 268? And eight I have.
0:20:23 > 0:20:27And 270? That was a definite no, wasn't it? 268 on bid.
0:20:27 > 0:20:29Standing. At 270 in a fresh place.
0:20:29 > 0:20:32272? 272.
0:20:32 > 0:20:37And five. And 78? No. 275 on the left.
0:20:37 > 0:20:40Being sold for the first time. 277.
0:20:40 > 0:20:41277.
0:20:41 > 0:20:43280?
0:20:43 > 0:20:45278? 278?
0:20:45 > 0:20:48278. And nine?
0:20:48 > 0:20:50Another thousand from you?
0:20:50 > 0:20:53At 278, then. Far left-hand side.
0:20:53 > 0:20:54Out? 279?
0:20:56 > 0:20:58Is that a bid? I didn't take it. 280 I have.
0:20:58 > 0:21:02No? You sure? At 280 then for the first time.
0:21:02 > 0:21:04280 for the second.
0:21:04 > 0:21:07280 for the third and final time.
0:21:07 > 0:21:11Are you all done at 280,000? Sold at 280,000.
0:21:11 > 0:21:17That final successful bid of £280,000 was made by Philip.
0:21:17 > 0:21:20He and his wife, Sam, have been on the programme before
0:21:20 > 0:21:24when they purchased a house not too dissimilar to this one.
0:21:24 > 0:21:27They bought it back in October, 2009,
0:21:27 > 0:21:29and turned it into their family home.
0:21:29 > 0:21:32The couple run a civil engineering business, as well as a building
0:21:32 > 0:21:36firm, so they are perfectly placed to take on this project.
0:21:36 > 0:21:40I met up with them back at the house to hear their plans.
0:21:40 > 0:21:42Sam and Philip, hello again.
0:21:42 > 0:21:45- Now, we have met before, haven't we? - We have, yeah.
0:21:45 > 0:21:48- You bought a fabulous house at auction, if I remember rightly.- Yep.
0:21:48 > 0:21:51You did it up to an amazing standard and you were living there.
0:21:51 > 0:21:52What has happened?
0:21:52 > 0:21:55Year on, we are still living there, all the family, the kids you met.
0:21:55 > 0:21:57- Yep. - So, why have you bought this one?
0:21:57 > 0:22:00It's a beautiful character building, again.
0:22:00 > 0:22:02I think we can put the love back into it.
0:22:02 > 0:22:05- So, have you bought this as an investment, guys?- Yeah.
0:22:05 > 0:22:08So, tell me, what was it about this house, Sam, that you like so much?
0:22:08 > 0:22:11The rooms and just the character of it.
0:22:11 > 0:22:16So, Sam got a good prognosis from this former doctor's day centre.
0:22:17 > 0:22:20It is going to require a lot of hard work to remove
0:22:20 > 0:22:23all the commercial trappings from this former medical centre.
0:22:23 > 0:22:27But Sam and Philip intend to convert this back into a grand,
0:22:27 > 0:22:29five-bedroom house,
0:22:29 > 0:22:33using the planning permission that has already been granted.
0:22:33 > 0:22:36So, how far are you going to go with putting the character back in?
0:22:36 > 0:22:38Because, you know, it could be a bit of a money pit, this house,
0:22:38 > 0:22:42because it's so big. Lots of rambling rooms and corridors.
0:22:42 > 0:22:45We aim to make it into a five-bed family house -
0:22:45 > 0:22:48with two bedrooms upstairs, en suite.
0:22:48 > 0:22:50These rooms, I think, will stay the same.
0:22:50 > 0:22:52They'll just be refurbed, basically.
0:22:52 > 0:22:56- And what about turning it into flats as opposed to one family house?- No.
0:22:56 > 0:22:59We know how to make this into a nice house.
0:22:59 > 0:23:01And it will sell.
0:23:01 > 0:23:05On top of the £280,000 they paid at auction,
0:23:05 > 0:23:11Philip and Sam have budgeted 75 to £85,000 for the work.
0:23:11 > 0:23:15So, their total could reach 365,000,
0:23:15 > 0:23:18and they reckon five to seven months should be sufficient.
0:23:18 > 0:23:22But what about the opportunity at the back?
0:23:22 > 0:23:24Did they consider a potential development out there?
0:23:24 > 0:23:27We did, but then you'd lose the space for the drive.
0:23:27 > 0:23:32A house of this quality and size, you need parking, off street parking.
0:23:32 > 0:23:35Guys, it's been fantastic meeting you again.
0:23:35 > 0:23:39I'm really excited to see what you do, and put your magic touch on it.
0:23:39 > 0:23:44- Good luck. Philip, lovely to see you again. Sam, thank you.- Thank you.
0:23:44 > 0:23:47Well, it's not like Sam and Philip are novices.
0:23:47 > 0:23:51And we know from their other project, they really can do this,
0:23:51 > 0:23:54with bells, whistles and knobs on.
0:23:54 > 0:23:57But I am not so sure about their plans this time.
0:23:57 > 0:24:00Is there a market for such a huge house in this area?
0:24:00 > 0:24:04On this busy main road? Will they find their buyer?
0:24:04 > 0:24:07You can find out later on in the programme.
0:24:08 > 0:24:10Coming up, in Devon,
0:24:10 > 0:24:13this house has a large living room and small kitchen.
0:24:13 > 0:24:15So, what are you going to do?
0:24:15 > 0:24:18Of course, knock this wall down.
0:24:18 > 0:24:22We return to Kent to find out if Philip and Sam's renovation
0:24:22 > 0:24:25- impressed the experts. - It's fantastic.
0:24:25 > 0:24:28It is a lovely property. It's been done to a high standard.
0:24:29 > 0:24:32But first, in Manchester.
0:24:32 > 0:24:36Is Nasser happy with his hard graft on this terrible terrace?
0:24:36 > 0:24:38I'm just proud of what I've done, really.
0:24:43 > 0:24:45Let's make our way back to Manchester,
0:24:45 > 0:24:48and the suburb of Gorton, where I viewed what should have been
0:24:48 > 0:24:50a lovely Victorian terrace.
0:24:54 > 0:24:58But I was shocked to find the house had been converted into two
0:24:58 > 0:25:00pokey one-bedroom flats.
0:25:00 > 0:25:02And the interior was a real horror show.
0:25:02 > 0:25:06# With a little bit of shock, shock, horror! #
0:25:07 > 0:25:10The property was riddled with rot and damp.
0:25:11 > 0:25:14That is extraordinarily damp.
0:25:14 > 0:25:19A hole in the roof had allowed rain to flow throughout the building.
0:25:20 > 0:25:23But there was worse to come - the rear wall that had
0:25:23 > 0:25:24partially collapsed.
0:25:24 > 0:25:28Which is clearly an absolute disaster!
0:25:31 > 0:25:35To the rescue, came property developer Nasser.
0:25:35 > 0:25:36He purchased the property
0:25:36 > 0:25:38at auction, along with a business partner,
0:25:38 > 0:25:40for £37,000,
0:25:40 > 0:25:4312 grand over the guide price.
0:25:45 > 0:25:50- Tell me why you wanted to buy this place.- It's a challenge.
0:25:50 > 0:25:54It does need a lot of work, probably rebuilding from new.
0:25:54 > 0:25:57From what I've seen.
0:25:58 > 0:26:02Nasser has seemed ready and able to rise to the challenge and save
0:26:02 > 0:26:07this property from ruin, but could he do that and still make a profit?
0:26:11 > 0:26:14Well, nearly seven months later, we're back.
0:26:14 > 0:26:21# Somebody save me!
0:26:21 > 0:26:25# Let your warm hands break right through and...
0:26:25 > 0:26:29# Save me! #
0:26:29 > 0:26:35The two flats are now a single warm and welcoming three-bedroom house.
0:26:35 > 0:26:37There are still finishing touches to do,
0:26:37 > 0:26:40but it looks like he has done a tremendous job.
0:26:40 > 0:26:45Even though it's not finished 100%, I would say 99%.
0:26:45 > 0:26:50But I am proud, you know? I'm glad where I am with it.
0:26:54 > 0:26:57The dank odour of damp has been banished
0:26:57 > 0:26:59and the house is now bright and fresh.
0:27:02 > 0:27:06You sort of really didn't have light or room or space
0:27:06 > 0:27:09when you walked in, you know? Like walking into a tomb.
0:27:09 > 0:27:12And it's nice. It's nice to have the space, you know.
0:27:15 > 0:27:19It's been a monumental undertaking, involving dry lining
0:27:19 > 0:27:22and plastering all the walls and ceilings,
0:27:22 > 0:27:25fitting new floor joists and laying flooring,
0:27:25 > 0:27:28as well as installing new electrics and plumbing.
0:27:39 > 0:27:42Nasser's budget also took a big hit
0:27:42 > 0:27:45on new double glazing and repairing the roof.
0:27:45 > 0:27:48And we have not even dealt with the rear of the house yet.
0:27:54 > 0:27:58Nasser has completely rebuilt the rear wall,
0:27:58 > 0:28:00first of all fixing the broken
0:28:00 > 0:28:04sewage pipe below the surface that caused the wall to collapse,
0:28:04 > 0:28:06and then repairing the damaged foundations.
0:28:10 > 0:28:13To be quite honest with you, if I bought a piece of land
0:28:13 > 0:28:17and built it, it would have been quicker and cheaper probably for me.
0:28:17 > 0:28:23There was time consuming, not to mention expensive, work.
0:28:23 > 0:28:26So, how much has Nasser spent on the renovation so far?
0:28:26 > 0:28:30I've not worked it out, but I would say
0:28:30 > 0:28:34in the region between 30 to 35,000. So far.
0:28:34 > 0:28:36Because I know only how much I had when I started
0:28:36 > 0:28:38and I know how much I have left.
0:28:38 > 0:28:42There are still odds and ends to do,
0:28:42 > 0:28:47but his estimated final budget should be around £35,000.
0:28:47 > 0:28:50Add that to the purchase price of 37,000
0:28:50 > 0:28:53and the total investment here is £72,000.
0:28:55 > 0:28:59Even though the majority was spent on structural repairs,
0:28:59 > 0:29:02Nasser hasn't skipped on the finish.
0:29:02 > 0:29:05He has fitted lovely oak doors throughout
0:29:05 > 0:29:08and also oak flooring in the reception room.
0:29:08 > 0:29:12Installing a new wide staircase has allowed Nasser to fit
0:29:12 > 0:29:17a WC into the space underneath.
0:29:17 > 0:29:20But I do hope he is not investing too much money here,
0:29:20 > 0:29:24thereby exceeding the ceiling price for properties in this area.
0:29:24 > 0:29:27Money-wise, I know I won't lose.
0:29:27 > 0:29:29You know, I got a debt cheap, really, in a way.
0:29:29 > 0:29:31If I don't make a profit, I've not lost.
0:29:31 > 0:29:34I'm just proud of what I have done, really.
0:29:39 > 0:29:41We asked two local estate agents
0:29:41 > 0:29:44for their opinions.
0:29:44 > 0:29:47The owner has done a great deal of work to the house,
0:29:47 > 0:29:49far more so than I probably would have anticipated, really.
0:29:49 > 0:29:51The property is almost there now
0:29:51 > 0:29:53and there is very little to do internally,
0:29:53 > 0:29:55other than maybe some minor decoration.
0:29:55 > 0:29:58My overall impressions on this property are very good.
0:29:58 > 0:30:01I think the owner has done it to a very good standard.
0:30:01 > 0:30:03Particularly impressed with what he did with the space
0:30:03 > 0:30:05using the downstairs cupboard as a toilet.
0:30:05 > 0:30:07I think he'll do well with it.
0:30:09 > 0:30:12How much could this place achieve on the rental market?
0:30:13 > 0:30:16I think this property would rent well, especially in this market.
0:30:16 > 0:30:19I think you will find a tenant no problem at all,
0:30:19 > 0:30:22looking at about £500 to £525 per calendar month.
0:30:22 > 0:30:27I would genuinely anticipate a rental figure of between £525
0:30:27 > 0:30:29and £550 per calendar month.
0:30:29 > 0:30:32Those figures, if achieved, would give Nasser
0:30:32 > 0:30:35and his business partner a healthy rental yield
0:30:35 > 0:30:38of between eight and nine percent.
0:30:38 > 0:30:40But they are more interested in selling.
0:30:40 > 0:30:45So, bearing in mind their total outlay of £72,000,
0:30:45 > 0:30:46what could that make?
0:30:46 > 0:30:49I think you would probably be looking at somewhere
0:30:49 > 0:30:51in the region of 70 to £75,000 for it.
0:30:51 > 0:30:56I would genuinely anticipate an asking price of between 75,000
0:30:56 > 0:30:58and £80,000.
0:31:00 > 0:31:02Those valuations could see Nasser
0:31:02 > 0:31:06and his business partner making a loss of £2,000
0:31:06 > 0:31:11or a profit, before taxes and expenses, of as much as 8,000.
0:31:11 > 0:31:13What does Nasser think about that?
0:31:13 > 0:31:18I reckon, really, I should get between 95 to 105.
0:31:18 > 0:31:20And that's what my target will be.
0:31:25 > 0:31:29I sincerely hope Nasser receives his asking price as due reward
0:31:29 > 0:31:31for all his hard work.
0:31:34 > 0:31:38- So, would he return to another auction?- Yes, I would.
0:31:38 > 0:31:41It is a challenge and I enjoy it.
0:31:46 > 0:31:49Today, I am in Paignton, in Devon, a popular coastal holiday
0:31:49 > 0:31:54destination on what is known as the English Riviera.
0:31:56 > 0:31:58So, you're bored of the beach,
0:31:58 > 0:32:00you're bored of paddling in the surf,
0:32:00 > 0:32:02you're bored of the sand in your sandwiches.
0:32:02 > 0:32:04Well, why not come a little bit inland
0:32:04 > 0:32:06and you've got Occombe Woods to wonder round.
0:32:06 > 0:32:09And, coincidentally enough, the property I'm here to see
0:32:09 > 0:32:13is literally on the road that leads down to the woods.
0:32:13 > 0:32:15Not particularly characterful -
0:32:15 > 0:32:19a 1960s house, three bedrooms. Let's take a look.
0:32:19 > 0:32:25The road itself is nice enough - wide, tree-lined and nicely kept.
0:32:25 > 0:32:28As always, let's hope we find the house in the same condition.
0:32:32 > 0:32:35Actually, forget it, I can't go in until...
0:32:35 > 0:32:37I made a comment about that.
0:32:39 > 0:32:41What an extraordinary garden!
0:32:43 > 0:32:45And with a little huffing...
0:32:45 > 0:32:48and plenty of puffing,
0:32:48 > 0:32:51I finally made my way to the top,
0:32:51 > 0:32:55where you can enjoy the view, but not much else.
0:32:55 > 0:32:59As for kicking about a football or firing up a barbie, forget it.
0:32:59 > 0:33:04The severe slope means this garden is not really a useful space at all.
0:33:04 > 0:33:08So, after all that exertion, let's take a tour inside.
0:33:08 > 0:33:11Uf! Well! Having taken an intake of oxygen
0:33:11 > 0:33:15and some anti-altitude sickness tablets,
0:33:15 > 0:33:18we finally enter the house.
0:33:18 > 0:33:19And quite pleasant it is, too.
0:33:19 > 0:33:22Somebody took the carpets out to see the floorboards.
0:33:22 > 0:33:24Would you strip those back? Maybe, maybe not.
0:33:24 > 0:33:27Good size entrance here,
0:33:27 > 0:33:29a little corridor down to the kitchen,
0:33:29 > 0:33:31stairs to the bedrooms
0:33:31 > 0:33:34and then through to the main room in the house.
0:33:34 > 0:33:35It's a nice surprise.
0:33:35 > 0:33:38It's a double aspect living room-dining room.
0:33:38 > 0:33:40A little balcony out there. Actually, it's by another door.
0:33:40 > 0:33:43I'm noticing straightaway, there are far too many doors.
0:33:43 > 0:33:47But it's a good size space with an open fire, which is good,
0:33:47 > 0:33:50and then very typical of the period,
0:33:50 > 0:33:53a serving hatch through to the kitchen.
0:33:53 > 0:33:55So, what are you going to do?
0:33:55 > 0:33:57Of course, knock this wall down, tear that out,
0:33:57 > 0:34:01create a really nice kitchen-family dining area.
0:34:01 > 0:34:03Maybe open that out onto a set of patio doors,
0:34:03 > 0:34:06so you can stare up at the mountain in front of you.
0:34:06 > 0:34:13And, as a starting point, I have not seen anything here that worries me.
0:34:13 > 0:34:16You might want to level out a portion
0:34:16 > 0:34:20of the steeply tiered garden to create a patio.
0:34:20 > 0:34:23But I'd recommend calling in some expert help to avoid a landslide.
0:34:23 > 0:34:26The last thing you want when you move this mountain
0:34:26 > 0:34:28is the garden landing inside your house.
0:34:28 > 0:34:33# I can move, move, move Any mountain. #
0:34:36 > 0:34:40Back inside and upstairs you've got a standard three-bedroom layout.
0:34:43 > 0:34:46Two good-sized doubles and a smaller bedroom at the front,
0:34:46 > 0:34:48with a bathroom and a separate loo.
0:34:49 > 0:34:54You could remove the wall to create one family-sized bathroom.
0:34:54 > 0:34:57There is no shortage of space in this property
0:34:57 > 0:35:00and I reckon there's more space you could utilize elsewhere.
0:35:04 > 0:35:05With planning permission,
0:35:05 > 0:35:09this integrated garage could be converted into extra accommodation,
0:35:09 > 0:35:12as several other houses on the street have done.
0:35:12 > 0:35:16To discover more about the potential for this property,
0:35:16 > 0:35:19we asked a local estate agent to take a look around.
0:35:19 > 0:35:22First impression of this property is that it has great potential.
0:35:22 > 0:35:24The gardens are steep.
0:35:24 > 0:35:28However, they do offer a good degree of privacy.
0:35:28 > 0:35:31A good landscape gardener could make a really good job of it.
0:35:33 > 0:35:36Is there potential to let the property to tenants?
0:35:36 > 0:35:37Is there much demand locally?
0:35:37 > 0:35:40Fully renovated, this would be a very rentable property.
0:35:40 > 0:35:44I would be looking between £700 and £750 per calendar month.
0:35:44 > 0:35:46What could it achieve once renovated?
0:35:46 > 0:35:50As a completely renovated property,
0:35:50 > 0:35:53we would be looking at between 150 and 160,000.
0:35:57 > 0:36:00Well, the house itself, pleasant enough.
0:36:00 > 0:36:03Spend a bit of time and effort and it could be a nice place to live.
0:36:03 > 0:36:05However, the thing which I will never forget
0:36:05 > 0:36:08about this property is this extraordinary garden -
0:36:08 > 0:36:13absolutely ideal for a mountain goat or an Everest explorer.
0:36:13 > 0:36:17Let's see who bought it. Scale the heights of this one!
0:36:17 > 0:36:19When it went under the hammer.
0:36:21 > 0:36:25Someone might start me off at £100,000 to start?
0:36:25 > 0:36:27I've got £100,000 at the back of the room.
0:36:27 > 0:36:31Looking for five more. Five more now on the aisle. 110. 115.
0:36:31 > 0:36:34Yep, 115. 120.
0:36:34 > 0:36:38The one, 116. 117 then.
0:36:38 > 0:36:40117, seated. 118?
0:36:40 > 0:36:43118 now. You're not together, are you?
0:36:43 > 0:36:46No, that's fine.
0:36:46 > 0:36:49119? 119. 120? 120 now.
0:36:49 > 0:36:54121 against either of you. 120 here. 121.
0:36:54 > 0:36:58Two? 122. Three? 123.
0:36:58 > 0:37:00And four? 124 now.
0:37:00 > 0:37:01125.
0:37:03 > 0:37:06125. One more for 126? No?
0:37:06 > 0:37:11£125,000. There is no further advance on that?
0:37:11 > 0:37:13Really sure?
0:37:13 > 0:37:14Sure, sure?
0:37:14 > 0:37:18That final bid of £125,000
0:37:18 > 0:37:21was made by the husband and wife Rick and Jackie.
0:37:26 > 0:37:30They live locally and run a diving charter boat.
0:37:30 > 0:37:34# Well, they call me deep-sea diver
0:37:34 > 0:37:38# Cos I can dive so far down. #
0:37:38 > 0:37:40They have renovated their own homes in the past,
0:37:40 > 0:37:43but recently decided to take the plunge
0:37:43 > 0:37:46and dive into the world of property development.
0:37:46 > 0:37:48This is their first investment.
0:37:48 > 0:37:53- Jackie, Rick, lovely to meet you. - Hello.- Congratulations.- Thank you.
0:37:53 > 0:37:55Tell me why you wanted to buy the house.
0:37:55 > 0:37:58We were looking at two at the auction,
0:37:58 > 0:38:00and this one was up first.
0:38:00 > 0:38:06And we set a price guide and we were just lucky enough to get it.
0:38:06 > 0:38:08Had the other one come up first, you would've bought that one.
0:38:08 > 0:38:09- Maybe, yes.- Really?
0:38:09 > 0:38:12- What was it you liked? - I suppose...
0:38:12 > 0:38:16Probably the ones we've done in the past have been older properties
0:38:16 > 0:38:20and we were hoping this would be an easier one to do.
0:38:20 > 0:38:23Although that's likely to be the case here,
0:38:23 > 0:38:26it doesn't always follow that a house built around 50 years ago,
0:38:26 > 0:38:29like this one, will have fewer problems than an older one.
0:38:30 > 0:38:34But for their first investment, I think they've chosen pretty well.
0:38:34 > 0:38:37They plan to do it up and let it out.
0:38:37 > 0:38:41What tempted you into the market right now?
0:38:41 > 0:38:43Well, we had some money put aside
0:38:43 > 0:38:46and it wasn't earning much interest,
0:38:46 > 0:38:48so we decided to invest in properties.
0:38:48 > 0:38:50What do you do when you're not doing this?
0:38:50 > 0:38:54- I run a dive charter boat. - Oh, right. Great.
0:38:54 > 0:38:57- And Jac helps me. - And the diving round here is good?
0:38:57 > 0:39:00Yeah, lots of wrecks, lots of things to see,
0:39:00 > 0:39:01so, yeah, brilliant.
0:39:01 > 0:39:04It turns out that Rick and I have a lot in common -
0:39:04 > 0:39:07I spend much of my time on the show looking at wrecks, as well.
0:39:07 > 0:39:09But of properties, in my case.
0:39:09 > 0:39:13Although, this house is actually not that bad.
0:39:13 > 0:39:16They are both keen DIYers and will do much of the work themselves,
0:39:16 > 0:39:19calling in specialists where they need to.
0:39:19 > 0:39:21So, what are they going to do here?
0:39:21 > 0:39:26We are going to do the electrics, put some gas central heating in,
0:39:26 > 0:39:29kitchen, bathroom, decorating.
0:39:29 > 0:39:33Any plans to take out the wall behind you to the kitchen?
0:39:33 > 0:39:36I think possibly, because of the size of the kitchen, that we will
0:39:36 > 0:39:39take the wall out, but we are still going to weigh it up, really.
0:39:39 > 0:39:41So, let's go on to the garden, then.
0:39:41 > 0:39:44- Well, the mountain.- Yes.
0:39:46 > 0:39:47Um, what do you think about that?
0:39:47 > 0:39:50Well, we want to do some improvements,
0:39:50 > 0:39:52but the house is a priority first.
0:39:52 > 0:39:56And depending on how much money we've got left in the pot, really.
0:39:56 > 0:39:58We are struggling with it.
0:39:58 > 0:40:03This area here we'll clear, make a patio area or something like that.
0:40:03 > 0:40:05But we might, if we can, we may lower it
0:40:05 > 0:40:08and put some railings up to make it safer.
0:40:08 > 0:40:10But I really don't know about the rest.
0:40:10 > 0:40:12We are hoping for some sort of, I don't know,
0:40:12 > 0:40:15some sort of idea to appear while we are doing the house.
0:40:15 > 0:40:16But I really don't know.
0:40:16 > 0:40:20Hopefully, inspiration will strike, because at the moment,
0:40:20 > 0:40:22I have to admit, I'm stumped.
0:40:22 > 0:40:28# I need your sweet inspiration
0:40:31 > 0:40:37# I need you here on my mind every hour of the day. #
0:40:37 > 0:40:39So, what is the budget for the works?
0:40:39 > 0:40:43We are looking at between 10 and 15.
0:40:43 > 0:40:45Right. And what kind of timescale?
0:40:45 > 0:40:48- About three months, we hope.- OK. Well, good luck with this one.
0:40:48 > 0:40:51- Thank you.- And I hope it turns out all right.- Thank you.
0:40:51 > 0:40:53Thanks very much.
0:40:55 > 0:41:00Well, a new challenge for boat owners Rick and Jackie to dive into.
0:41:00 > 0:41:03I think that house won't prove too much of a problem,
0:41:03 > 0:41:07however I think the garden may be a challenge too far.
0:41:07 > 0:41:10You can find out how they get on later in the show.
0:41:13 > 0:41:16Our would-be property tycoons were certainly eager beavers
0:41:16 > 0:41:17when we left them.
0:41:17 > 0:41:22- Yes, so did they grab the bull by the horns?- Let's find out.
0:41:23 > 0:41:25Let's return to Chatham, in Kent,
0:41:25 > 0:41:29where I viewed this lovely looking property.
0:41:29 > 0:41:32Inside however, it was drab and dreary.
0:41:32 > 0:41:35It had been used as a medical centre.
0:41:35 > 0:41:38But the period features left me breathless.
0:41:38 > 0:41:42# Take my breath away. #
0:41:45 > 0:41:48Well, I thought a developer could reap
0:41:48 > 0:41:52greater financial reward by converting it into two flats.
0:41:52 > 0:41:56I was thrilled when husband and wife developing duo Philip and Sam
0:41:56 > 0:42:00told me they planned to restore it into one fabulous five-bedroom
0:42:00 > 0:42:02family home.
0:42:02 > 0:42:07They purchased this auction lot as an investment for 280,000.
0:42:07 > 0:42:09It is a beautiful character building.
0:42:09 > 0:42:11I think we can put the love back into it.
0:42:11 > 0:42:16I'm really excited to see what you do, and put your magic touch on it.
0:42:16 > 0:42:20Philip and Sam plan to return this once great property
0:42:20 > 0:42:23to its former grandeur before selling it on.
0:42:24 > 0:42:27I can't wait to see what they've achieved.
0:42:28 > 0:42:32So, just over ten months later, we're back.
0:42:37 > 0:42:40Well, the exterior looks lovely.
0:42:40 > 0:42:43Let's begin by taking a turn around the ground floor.
0:42:44 > 0:42:47# I'm breathless! #
0:42:49 > 0:42:52The grand entrance makes a fabulous first impression.
0:42:56 > 0:43:00# I'm breathless! #
0:43:00 > 0:43:04The front reception rooms have been transformed
0:43:04 > 0:43:09from tired and tacky office space into simply stunning.
0:43:10 > 0:43:14When you first came, this place was offices, very bland.
0:43:14 > 0:43:18And we basically restored it back to a family house.
0:43:18 > 0:43:22It's lovely to see a house change
0:43:22 > 0:43:25from an office, which destroyed all the character of the house
0:43:25 > 0:43:28and come back to its original state.
0:43:28 > 0:43:29It's lovely to see it finished.
0:43:31 > 0:43:35The stained-glass windows and ornamental tiles are beautiful.
0:43:35 > 0:43:39The couple have not only restored, they've modernised.
0:43:39 > 0:43:41By combining this room with the kitchen
0:43:41 > 0:43:46and hallway in between, they have created a new heart for this home.
0:43:46 > 0:43:49- # Beautiful - Beautiful
0:43:49 > 0:43:53- # Beautiful - Beautiful
0:43:53 > 0:43:57# You make me feel so beautiful. #
0:43:57 > 0:44:00This was the original kitchen here.
0:44:00 > 0:44:03It extended from here to about here.
0:44:03 > 0:44:05There was a partition wall here.
0:44:05 > 0:44:07There was a little hallway here with another partition.
0:44:07 > 0:44:11We took out these partitions and made this into one big, open room.
0:44:11 > 0:44:14We had to level the floors and get all the floors to level.
0:44:14 > 0:44:19We then fitted this modern kitchen with integrated appliances.
0:44:19 > 0:44:21And an island.
0:44:21 > 0:44:23And we're very pleased with it.
0:44:23 > 0:44:26And so they should be.
0:44:27 > 0:44:31Philip has also been rather clever with the conservatory.
0:44:31 > 0:44:33He has turned it sideways against the house,
0:44:33 > 0:44:35maximising the floor space.
0:44:35 > 0:44:37Genius!
0:44:38 > 0:44:42The original conservatory, actually, was on the same line here
0:44:42 > 0:44:44and extended only to here.
0:44:44 > 0:44:47So, effectively, we had the panels here and the panels here.
0:44:47 > 0:44:51All we've done is remove the panels here and made them
0:44:51 > 0:44:54in a straight line, which increased the size of the conservatory.
0:44:54 > 0:44:59We had to level the floors and we re-rendered all the walls.
0:44:59 > 0:45:03Perfect for enjoying splendid summer days like this.
0:45:04 > 0:45:07Unfortunately, it meant the floor tiles had to be removed,
0:45:07 > 0:45:10but the couple have added features in keeping with
0:45:10 > 0:45:13the age of the property elsewhere.
0:45:13 > 0:45:16At a very early stage, we realised
0:45:16 > 0:45:19that we had to get the period features put back in it -
0:45:19 > 0:45:22putting the panel doors back, putting all of cornices back.
0:45:22 > 0:45:24We had to get special mouldings made
0:45:24 > 0:45:27to suit the existing, they're not made any more.
0:45:27 > 0:45:30So, yeah, we were very conscience trying to get the original features
0:45:30 > 0:45:31back to the house.
0:45:31 > 0:45:33# All I know is
0:45:33 > 0:45:37# You may me feel so...
0:45:37 > 0:45:39# Beautiful
0:45:39 > 0:45:43# Beautiful
0:45:43 > 0:45:46# Beautiful
0:45:46 > 0:45:50# You made me feel so...
0:45:50 > 0:45:53# Beautiful. #
0:45:53 > 0:45:57Upstairs, the rooms have been renovated and remodelled to create
0:45:57 > 0:45:59two bedrooms with en suite -
0:45:59 > 0:46:04one with bathroom, the other with a shower room -
0:46:04 > 0:46:07and three further bedrooms.
0:46:09 > 0:46:12Philip and Sam are experienced property developers.
0:46:12 > 0:46:15But while some couples can find it difficult working
0:46:15 > 0:46:19and living together, their relationship positively thrives.
0:46:21 > 0:46:24So, what's the secret of their success?
0:46:24 > 0:46:27We get on. I think.
0:46:27 > 0:46:29I think we just get on very well.
0:46:29 > 0:46:31And we're both very focused
0:46:31 > 0:46:33and we're both focused in the same direction,
0:46:33 > 0:46:37so it's very easy to have vision and move on with properties. Yeah.
0:46:37 > 0:46:40Sam is my best friend. And we complement each other very well.
0:46:40 > 0:46:44I do my building and Sam is very good at the interior design.
0:46:46 > 0:46:50The couple had hoped to spend up to £85,000 on the renovation,
0:46:50 > 0:46:52but have spent ten grand more.
0:46:52 > 0:46:54That's not too bad at all,
0:46:54 > 0:46:57considering the fabulous finish here.
0:46:57 > 0:47:01This means their total investment, including purchase price,
0:47:01 > 0:47:04is 375,000.
0:47:10 > 0:47:13So, what do the couple plan to do with this property
0:47:13 > 0:47:16now that their renovation is complete?
0:47:16 > 0:47:19The plan is to, obviously, put it on the market.
0:47:19 > 0:47:21Try to make a profit.
0:47:21 > 0:47:24And look for a similar property again,
0:47:24 > 0:47:27because we really do like Victorian or Georgian buildings.
0:47:27 > 0:47:31And it's good fun. It's good fun. It's a nice way to make a living.
0:47:31 > 0:47:33Have Philip and Sam invested wisely
0:47:33 > 0:47:37and is the local property market suitable
0:47:37 > 0:47:40for a beautiful, big house like this?
0:47:40 > 0:47:43It's not at the prime resale end of the street,
0:47:43 > 0:47:47where ones of a similar size can sell for 100,000 more.
0:47:47 > 0:47:52But has the couple's high-end finish earned them a premium price tag?
0:47:56 > 0:47:59We invited two local estate agents to give us
0:47:59 > 0:48:00their opinions.
0:48:00 > 0:48:04When you first enter the property,
0:48:04 > 0:48:06you are greeted by the beautiful stained-glass
0:48:06 > 0:48:09and the period features immediately hit you.
0:48:09 > 0:48:14The size of the property just makes it ideal for a large family
0:48:14 > 0:48:16or even a two-generation family.
0:48:17 > 0:48:18It's fantastic.
0:48:18 > 0:48:21It's a lovely, lovely property. It's been done to a high standard.
0:48:21 > 0:48:23It'll make this property so desirable,
0:48:23 > 0:48:27but not necessarily much more valuable.
0:48:27 > 0:48:29But it has been done to a very, very high standard.
0:48:30 > 0:48:33Well, the experts are impressed with Philip and Sam's renovation,
0:48:33 > 0:48:36but a note of caution has been sounded.
0:48:36 > 0:48:39Have the couple spent too much,
0:48:39 > 0:48:43bearing in mind their total investment of 375,000?
0:48:43 > 0:48:45Let's find out.
0:48:45 > 0:48:49I would market this for £475,000
0:48:49 > 0:48:53and I would sell this property for in the excess of £450,000.
0:48:53 > 0:48:55I would suggest the owners place the property on the market
0:48:55 > 0:48:58for £575,000.
0:48:58 > 0:49:04Well, that is a very wide valuation range, so it seems the location
0:49:04 > 0:49:07has made a difference to one of the estate agents' estimates.
0:49:07 > 0:49:10However, if the amounts in that range were achieved,
0:49:10 > 0:49:13Philip and Sam could make a pre-tax profit
0:49:13 > 0:49:19of between 75,000 and 200,000, minus the usual selling expenses.
0:49:19 > 0:49:22The couple already have the house on the market,
0:49:22 > 0:49:25so let's hear how much for.
0:49:25 > 0:49:29We have it on the market in the 500 to 600 band.
0:49:29 > 0:49:31So, we expect it to be somewhere in the middle.
0:49:33 > 0:49:37Philip and Sam develop properties not only for financial reward,
0:49:37 > 0:49:40but because they love to bring period places, like this,
0:49:40 > 0:49:41back to life.
0:49:43 > 0:49:46So, what's next for them?
0:49:46 > 0:49:50We plan to carry on. We love these traditional houses.
0:49:50 > 0:49:51If we could find another one, yeah,
0:49:51 > 0:49:53we'd jump in and do it all over again.
0:49:53 > 0:49:58And I for one hope we'll be there to see the results when they do.
0:50:05 > 0:50:07We are going back to Preston, near Paignton,
0:50:07 > 0:50:10in Devon, where earlier in the programme,
0:50:10 > 0:50:14husband and wife, Rick and Jackie, paid £125,000
0:50:14 > 0:50:18for this house built at the bottom of a very steep hill.
0:50:20 > 0:50:23Although outside was going to be an uphill struggle,
0:50:23 > 0:50:26the inside wasn't too bad.
0:50:26 > 0:50:30Rick and Jackie planned to refurbish and then look for tenants.
0:50:30 > 0:50:32Although they've done up their own homes in the past,
0:50:32 > 0:50:35this was their first investment project.
0:50:35 > 0:50:38So, let's go on to the garden, then.
0:50:38 > 0:50:42- Well, stroke mountain.- Yes.
0:50:42 > 0:50:45- What do you think about that, then? - Well,
0:50:45 > 0:50:49we want to do some improvements, but the house is a priority first.
0:50:49 > 0:50:52This area here we will clear, make a patio area or something like that.
0:50:52 > 0:50:54But I really don't know about the rest.
0:50:54 > 0:50:56We're hoping for some sort of idea
0:50:56 > 0:51:00to appear while we are doing the house. But I really don't know.
0:51:00 > 0:51:04Five and a half months have passed.
0:51:04 > 0:51:07And we meet Jackie and Rick again back at the house by the hill
0:51:07 > 0:51:09to see what they've achieved.
0:51:12 > 0:51:15Well, no surprise, the mountain's not moved.
0:51:15 > 0:51:18But there have been some changes lower down.
0:51:18 > 0:51:20A patio door has been installed,
0:51:20 > 0:51:24which lets much more light into the living room.
0:51:27 > 0:51:31Losing the old fire surround and adding an electric fire
0:51:31 > 0:51:32is a big improvement.
0:51:32 > 0:51:35And that serving hatch is no more.
0:51:36 > 0:51:40You can now carry your curry out from the kitchen.
0:51:40 > 0:51:44It has been refitted with modern units and new appliances.
0:51:47 > 0:51:52The former door has been bricked up and the larder removed.
0:51:52 > 0:51:55That has enabled a longer work surface to the added,
0:51:55 > 0:51:57as Rick explains.
0:51:57 > 0:52:01We took out the larder, removed the back door,
0:52:01 > 0:52:06opened up the serving hatch into a doorway into the dining room.
0:52:06 > 0:52:10As it was, we wouldn't have got all the cabinets in.
0:52:10 > 0:52:13And now, we've made a much larger kitchen.
0:52:13 > 0:52:17It's my first time fitting a kitchen and, yeah, I think it's good.
0:52:17 > 0:52:18I'm quite please with it.
0:52:18 > 0:52:22The house has had a complete rewire and it has been re-plumbed,
0:52:22 > 0:52:25plus new central heating has gone in.
0:52:25 > 0:52:29They also discovered woodworm in the hall that needed treating.
0:52:29 > 0:52:32Upstairs, the two front bedrooms are finished.
0:52:34 > 0:52:36There is new carpet throughout
0:52:36 > 0:52:39and they just need the doors to be re-hung.
0:52:39 > 0:52:43Along the landing, the separate loo is gone.
0:52:43 > 0:52:46Rick and Jackie have removed the dividing wall
0:52:46 > 0:52:50and created a lovely family bathroom.
0:52:51 > 0:52:55It certainly makes the most of the extra space they've gained.
0:52:55 > 0:52:59We took down a wall between the toilet and bathroom
0:52:59 > 0:53:03and then moved that wall out
0:53:03 > 0:53:05so we could fit a bath... a full-sized bath in.
0:53:05 > 0:53:09It was my first attempt at tiling an entire bathroom, and so,
0:53:09 > 0:53:11yeah, quite pleased.
0:53:12 > 0:53:17Next to the bathroom, the second double bedroom overlooks the garden.
0:53:18 > 0:53:22Rick is still waiting for inspiration for the top of the hill,
0:53:22 > 0:53:25but down at the bottom, he has got a plan.
0:53:25 > 0:53:29We are thinking of getting rid of some of the steps.
0:53:29 > 0:53:33I'm worried about someone falling down. You know, it's quite steep.
0:53:33 > 0:53:35So, we're hoping to sort of, like, tier it
0:53:35 > 0:53:41in a way, and move the steps, so they're not all in one direct line.
0:53:43 > 0:53:45Apart from Rick, Jackie and their children, Will and Emily,
0:53:45 > 0:53:48lending a hand, who else has been involved here?
0:53:48 > 0:53:52We've had a plasterer in and a plumber and an electrician,
0:53:52 > 0:53:56but most of the other work, all the changing,
0:53:56 > 0:53:59taking walls down and changing the layout was done by ourselves.
0:53:59 > 0:54:03The steps leading to the front door have moved away from the house,
0:54:03 > 0:54:07so Rick has got to demolish them and rebuild.
0:54:07 > 0:54:09And although they've treated the woodworm,
0:54:09 > 0:54:12they need new joists in the wall.
0:54:12 > 0:54:14So how long will all that take?
0:54:14 > 0:54:19Being optimistic, I'm hoping we'll have it done in another month.
0:54:19 > 0:54:22Maybe not all the garden, but the majority of it.
0:54:24 > 0:54:28Rick reckons the work should take around a month to complete
0:54:28 > 0:54:30and that he'll be just a fraction over
0:54:30 > 0:54:33that upper budget limit of 15,000.
0:54:33 > 0:54:37Added to that purchase price of 125,000,
0:54:37 > 0:54:43that makes their total outlay here just over 140,000.
0:54:46 > 0:54:52Time to see what two estate agents make of the property.
0:54:54 > 0:54:58I like the idea of knocking the bathroom and toilet into one
0:54:58 > 0:55:00to make a bigger bathroom.
0:55:00 > 0:55:03And also the back door they moved to make a bigger kitchen, as well.
0:55:03 > 0:55:04It's a good idea.
0:55:04 > 0:55:07It's very appealing. The kitchen is very modern.
0:55:07 > 0:55:09Again, the bathroom is... It flows a lot better
0:55:09 > 0:55:11than it used to do.
0:55:11 > 0:55:15The addition of the patio doors to go into the garden have made
0:55:15 > 0:55:16a big impact on the property.
0:55:16 > 0:55:21How much rental income could the house achieve?
0:55:21 > 0:55:25I'd put this property up for rent on the open market at between
0:55:25 > 0:55:28£700 and £725 per calendar month.
0:55:28 > 0:55:30The rental income they're going to get
0:55:30 > 0:55:32is about £750 per calendar month.
0:55:32 > 0:55:37Those rental incomes would generate a yield of around 6% to 6.5%.
0:55:39 > 0:55:43But Jackie is having second thoughts about letting the house.
0:55:43 > 0:55:48We think we may have got a bit too involved with this place to rent it.
0:55:48 > 0:55:51So we may be wanting to sell it.
0:55:51 > 0:55:55Well, if resale is the route, will the estate agents value it
0:55:55 > 0:55:59above the £140,000 that Rick and Jackie have invested?
0:55:59 > 0:56:03We are probably looking at fetching somewhere in the region
0:56:03 > 0:56:07of 155,000 and putting it up for sale at 160,000.
0:56:07 > 0:56:12I would look to market it somewhere in the region of 165,000 to 169,950.
0:56:12 > 0:56:15So, after all that hard work, that valuation range
0:56:15 > 0:56:19could generate a profit of between £13,000 and nearly £30,000,
0:56:19 > 0:56:24before tax and expenses. They must be delighted about that.
0:56:27 > 0:56:29- Yeah, pleased with that.- Yeah.
0:56:29 > 0:56:32If we sold it, it'd be a good return, so, yeah.
0:56:32 > 0:56:34Can't be unhappy with that.
0:56:35 > 0:56:38I wouldn't want something with this amount of work...
0:56:38 > 0:56:41I mean, we have had help from our children, Will and Emily,
0:56:41 > 0:56:45and my mum has been across and has done quite a lot for us.
0:56:45 > 0:56:48Next time, I think maybe something with not so much work.
0:56:50 > 0:56:53From perfect homes to shrewd investments,
0:56:53 > 0:56:55we will have lots more properties for you next time
0:56:55 > 0:56:57on Homes Under The Hammer.
0:56:57 > 0:57:00- Look forward to seeing you then. - Goodbye for now.- Goodbye.
0:57:04 > 0:57:07Subtitles by Red Bee Media Ltd