Episode 47 Homes Under the Hammer


Episode 47

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Hello. Now, whether you're looking

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for a lucrative investment or your dream home,

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the property auctions may have something for you.

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Even in the more challenging times,

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there are still bargains to be had as long as you avoid those pitfalls.

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So, join us now as we show you the ropes.

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Well, a nod of the head,

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a wave of the catalogue or a sly wink, it doesn't matter

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how you bid as long as you get the auctioneer's attention.

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Now, today, we'll be meeting some people who did just that,

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but what three properties did they choose?

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Let's find out.

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These Victorian terraces in Manchester look attractive

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from outside, but is this one as good inside, I wonder?

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No. Actually...

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In Kent, this auction lot makes a fabulous first impression.

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This really is a massive hallway!

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It is fantastic!

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And I am in Devon, where I ascend to giddy heights.

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Only the fit need apply.

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What an extraordinary garden!

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All these properties were sold at auction.

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We'll find out who bought them and what they paid for them

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when they went under the hammer.

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# I'm not so sure and yet I know. #

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I am ten minutes outside of Manchester City centre,

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in an area called Gorton.

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But this isn't the first time the area has been on television

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because it was one of the locations for the TV drama Shameless.

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Well, over the last few years,

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there has been many millions of pounds poured into the area,

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not least in the redevelopment of the shopping area here.

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So, that is a good sign.

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Well, the area has lots of houses like these - Victorian terraces

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built around the 1900s, and jolly nice homes they can make, too.

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What I am here to see had a guide price of 25,000 quid.

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Well, it certainly looks like it needs a bit of tender loving care

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from the outside, however,

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this property is slightly more than it first appears.

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It does look like a standard Victorian house,

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albeit a rather dilapidated one, but is that what we'll find inside?

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No, actually, you know what, it isn't.

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It's flats. In fact, two flats.

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This is the entrance door to the upstairs flat

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and this is the entrance door to the ground-floor flat.

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Nice size. Love the front there, big bay window,

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lots of light flooding in, that doesn't look too bad.

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Oh, dear. Famous last words.

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Walk towards the rear of the property

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and I am starting to see some very worrying signs of problems.

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That is extraordinarily damp.

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Let's continue through to the kitchen.

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More mould on the walls there. And, um, all the... Wow!

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All the walls feel really, really almost wet.

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And if you look at the ceiling there, it's like

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it's collapsing in. Latest design, Swedish flat pack.

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Do you like that? Clearly, the kitchen needs...a bit of work.

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But that is tiny in comparison to...

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what I think could be some really horrible problems.

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I wonder where I can find out more.

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# I'm trouble Yeah, trouble now

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# I'm trouble, y'all I disturb my own town

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# I'm trouble Yeah, trouble now

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# I'm trouble, y'all I've got trouble in my town. #

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There really is a whole lot of trouble here,

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from broken windows and damp to no central heating.

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This flat needs to be completely taken back to brick

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and started again.

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Well, up the alarmingly steep staircase to the first floor

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and the second flat.

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And you know what, it's not getting any better.

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In fact, in some ways, it's getting even worse.

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Look at that.

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Somebody has taken off the plasterboard ceiling

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so you can see right through to the loft. There is no underfelt.

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In fact, I can see a whole there.

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I can see daylight coming through.

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So, obviously, the roof is in a right old state.

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Water has been pouring in over goodness knows

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what kind of length of time. It has made this wall very damp.

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It has gone through the floorboards, down to the floor below.

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And the wall below, as well.

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Who knows what kind of damage that has created in terms of rot

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or whatever. And again, up here,

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there's just this feeling that something isn't quite right.

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You know what?

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I really am not getting a good feeling about this place.

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Yes, there is so much damp

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and rot that I suspect the roof has been leaking for some time,

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which has left the place in a pretty bad state.

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The room sizes are OK,

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but the shower room...

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Well, that's the stuff of nightmares.

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And the shocks continue outside.

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What isn't good news at all

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is what I've found at the rear of the house,

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which is clearly an absolute disaster,

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much worse than I thought.

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What has been going on, my guess,

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is that one of the drains here has collapsed.

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And all the water that has been pouring down from the ceiling,

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from the sewer pipe,

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from wherever over the years has gone into the ground

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and the whole of this rear is basically falling down.

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You can see the bricks have all gone.

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The windows, all the bits around the windows.

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My first thought

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is that though whole of this rear wall

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is going to have to be taken down.

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Suddenly...

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..that's not good, is it?

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You don't want the rear wall of the property going the same way

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as the garden wall, which has already collapsed.

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You can only reach the back garden through a gated area at the moment,

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so the true horrors of this place could have gone unnoticed

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by an unsuspecting bidder.

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But bearing in mind the low guide price of £25,000,

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it could still work as an investment.

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Well, setting aside the obvious issues of the property

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just for one moment,

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let's take a bigger-picture view of what we should do with it.

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Should we keep it as two flats or convert it back into one property?

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That comes down to what you plan to do with that.

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Renting it out, you'll probably get more money keeping it as two flats.

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But as a resale, you're going to get more

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from converting it back into one house.

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So, as I said, it depends what you plan to do with it.

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In order to put some numbers on those options,

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we asked along a local estate agent to hear his expert advice

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on this property

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with its guide price of £25,000.

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Well, obviously, this place is going to need

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full renovation.

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I mean, totally rip it down and start again.

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The property hasn't been looked after at all.

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It probably has even stood empty for a while.

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Yes, it is a state all right.

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But what's the best way to revive its fortunes?

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I think if you turn this property back into a two-bedroom house,

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you would be looking at putting the property on the market

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for £75,000.

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Two one-bedroom flats,

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I think you would be looking at around about £35,000 per flat.

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Despite its condition, it could still be

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a viable resale proposition,

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particularly as a two-bedroom house.

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But what about rental?

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Rental valuations on a one-bedroom flat in this area,

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you're looking, I would say, £300 to £325 per calendar month.

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You turn it back into a two-bedroom house,

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you'd be looking at renting the property out within the region

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of £450 to £475 per calendar month.

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So, for an experienced builder or developer,

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buried under the rubble, there could be a nice little earner.

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Well, your initial reaction on this one might be don't touch it

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with a barge pole, and to a degree, you might be right.

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However, it all comes down to how much you pay for this property.

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Because if you get it at a good enough price and allow money to do

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all the major works that's needed, then you could still be quids in.

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It's all about making sure you know what you are taking on.

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Let's find out who bought it when it went under the hammer.

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At £25,000, do I see a bid?

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At £25,000.

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I see 20 on my right.

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At £20,000.

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Who is going to give me 21? At 21, new bid at the back.

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21,000. I see 22 on my right. 23.

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It's going to you. 23, yes? No? 24? At 24,000 then. 25?

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25. 26? At 26,000. At 27?

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At 26 on my right then, 27 I'm looking for. 27 I have, new bid.

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27,000. 28?

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At 27,000, 28? 28,000.

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29? At 29,000.

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Do I see 30? 30,000 may I say at the back?

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At £30,000.

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31, he's back in at 31,000. Do I see 32?

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He's in the market at 32,000. 33?

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No. At 32,000 then. At 32.5 anywhere?

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It will be sold at 32,000. 32.5.

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33, may I put you in? At 33,000. 33.5? 33.5.

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34 at the rear, I'm looking for. No. At 33,500 on my right,

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gentlemen's bid. At £33,500, it will be sold.

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34. At 34,000. 34.5 may I say on my left?

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New bid, 34.5. 35.

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At 35,000. 35.5 anywhere?

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35.5, new bid at the back. 36. At 36. 36.5?

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At 36.5. 37?

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At 37. At 37.5? No. At £37,000 then, for the first time.

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At £37,000 for the second time.

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Are we all done it £37,000?

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The final bid of £37,000 came from property developer Nasser.

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He has done a number of his own developments in the past, but having

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worked abroad for a few years, this is his first in the UK since 2004.

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This one is a collaboration with a business partner.

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Congratulations.

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-Thank you very much.

-Tell me why you wanted to buy this place.

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Uh... It's a challenge.

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I didn't check on it all.

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It does need a lot of work, probably re-building from new.

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From what I've seen.

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So, let me just check, did you go around the back?

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I didn't because you couldn't get any access from inside the house.

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-Yes.

-Right?

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And the gates were locked, so I had no chance to check in the back.

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So, that must have been a bit of a shock for you then.

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It is and it isn't because in the past, I bought houses

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at no sight and my friends were telling me I'm crazy.

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I bought some for 9,000, I've sold them at 100,000.

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-Oh, wow!

-So, I wasn't really crazy.

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You never know. It's the market, that's the thing.

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You never know what happens with the market.

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Nasser has done total rebuilds before

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and isn't phased by the amount of work here.

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So, what are you going to have to do to sort it out?

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I'll have to have new roof, new windows, new central heating,

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-take the back walls down.

-Completely?

-Completely.

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Put a foundation, rebuild them. A kitchen.

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It's like rebuilding a new house, really.

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Nasser also intends to restore the property into a single house,

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as he believes that will maximise its sale value.

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What is the budget for all of this, then?

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When I first bought it,

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I thought I'd probably spend between 13, 15, 17,000.

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-But looking at it now, I will probably go up to 25,000.

-25.

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And given what you paid for it,

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is there still profit to be made for you?

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From what I gather, probably just under 10,000.

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Just under 10. Is that OK?

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It depends how much I save, really, on the work.

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-Yeah, it's OK.

-And for you then, what is next on the agenda?

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-Are you going to do more?

-Yeah, but I'll be more careful next time.

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-I'll be more careful, yeah.

-Well, listen, congratulations.

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At least you're smiling.

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-Thank you very much.

-Nice to meet you.

-Thanks.

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# You got a keep smiling You got a keep trying

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# Cos things can't... Things can't get much worse. #

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Well, I think this sorry-looking terrace is now in safe hands,

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and thank goodness Nasser is still smiling.

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How will he get on? You can find out later in the show.

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For the next property that went to auction,

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I've come to Chatham, one of Kent's Medway towns.

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I'm here to see an attractive double bay-fronted detached property

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situated close to the busy town centre.

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It's on a busy road, as well, but I know similar properties

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on this road are on the market for £700,000.

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And so the guide price for this auction lot really caught my eye.

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It was set at just £200,000 to £210,000!

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What's wrong with it?

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OK, the hedge needs clipping, but from the outside,

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things are off to a really good start.

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It's an imposing double-fronted detached property,

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which was used as a medical centre until recently.

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Judging by the exterior, it appears in good health.

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Well, that really is my ideal looking property from the outside,

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but the inside just blows me away with how huge it is!

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I mean, this really is a massive hallway!

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It's fantastic!

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Lots of rooms running off it.

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Look beyond the woodchip wallpaper, the strip lighting

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and the fire extinguisher signs, it's quite amazing.

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# Take my breath away. #

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This property has great period character.

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It really is a vision.

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On the ground floor, are five rooms.

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This large room was used as an office and reception.

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And across the grand hall,

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is what I think would have been the waiting room.

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More character features looking at you as soon as

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you walk into this room. Look at this lovely fireplace!

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There is a beautiful, old bay window down here.

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Well, it will be once all of this is off.

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But this is a commercial property and I think it is fairly evident

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from looking around - strip lighting...

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It was used as a medical day centre and has D1 usage,

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but I've got some really good news because planning has already

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been granted for the change of use to residential.

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And so, it will have a C3 classing.

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Now, that really is what you want to hear

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and it certainly lightens the load when it comes to developing.

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Whoever takes this project on can crack on with the work

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straightaway.

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So, who is going to buy this property? Any suggestions?

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# I've got so many new ideas

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# I've got so many new ideas. #

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Whoever takes this on will have a lot of property on their hands,

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because we're still not finished on the ground floor.

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Further down the hall, there is what looks like a consulting room.

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There's a further room, which leads out onto a conservatory

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with beautiful, original floor tiles.

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But from the outside, it looks in a poor state.

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Finally, there's a kitchen.

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Time now to investigate the first floor.

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Up the grand staircase, past this amazingly decorative window,

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is yet more accommodation up here.

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# How do you like it?#

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Two bay-fronted former consulting rooms

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at the front and a couple of offices at the back overlook the garden.

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And a fifth, slightly smaller room.

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So, enough potential bedrooms for a large family.

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And it's great to see so many fireplaces have survived.

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Upstairs, this property boasts five bedrooms.

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Knowing this area pretty well, I would have a concern here.

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A big, substantial property like this is amazing,

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and I have loved walking around here today.

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It would be an exciting project to take on, but as a developer,

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you always have to think about your target market.

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Is there a demand for a big detached house like this in this area?

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If this were mine, I would be inclined to half my risk,

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divide this house into two dwellings.

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This, of course, is subject to planning permission,

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but it is definitely something to think about,

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especially in the current market.

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So, the house isn't at the prime end of the street,

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where similar sizes of property sell for as much as 100,000 more.

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But this place has plenty of potential

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and its appeal doesn't stop inside.

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You have got quite a substantial garden out here.

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Now, if you did think about dividing that house into separate dwellings,

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there would still be more than enough garden to go around.

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You could put a fence up in the middle here

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and you'd still be left with generous outside space.

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But now, look at this.

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You're thinking, "Oh, great, just a bit more land."

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But now, it is much more than that. Much more!

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Because there is vehicular access,

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so you could think about building a property out there

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with its own independent entrance.

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Again, subject to all the necessary planning permissions

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being obtained, but how exciting is that?

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# How you like it?

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How you like it? #

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We invited a local estate agent to give us his opinion on this house,

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which had a guide price of between 200 and 210,000.

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The development opportunities here are immense, really.

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I could see the possibility of one unit.

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Very nice family home.

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Two individual units, possibly a number of flats,

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you know, subject to planning.

0:18:420:18:44

If the new owner was to develop this as a five bedroom house,

0:18:440:18:48

how much could it be worth once renovated?

0:18:480:18:51

I could sell this house fully completed in the region of 500,000

0:18:520:18:58

to maybe £750,000 depending on the level of finish.

0:18:580:19:03

So, as one house, it could perhaps fetch around £2,000

0:19:030:19:08

per calendar month on the rental market.

0:19:080:19:11

But the possibilities don't end there.

0:19:110:19:14

If you were to develop this and turn this into two three-bedroom

0:19:140:19:18

properties, done to a good standard,

0:19:180:19:21

you could ask for 200 to £250,000 per property.

0:19:210:19:25

Well, I think I have made it clear what I think.

0:19:250:19:28

This is a fabulous development opportunity.

0:19:280:19:30

You could have three houses for the price of one

0:19:300:19:33

if planning permission went your way. That really could happen,

0:19:330:19:37

although this would be an amazing family house to live in!

0:19:370:19:41

Let's see who wanted it when it went to auction.

0:19:410:19:45

200 to 210,000, the guide. Start me at 200. 200 I have.

0:19:460:19:51

That's what I like to see, positiveness.

0:19:510:19:54

At 200,000, 210 is bid. And 220.

0:19:540:19:57

220 I'm bid. And 30. 230.

0:19:570:20:00

And 240. 240.

0:20:000:20:03

And 250? 250 is bid.

0:20:030:20:05

And 260?

0:20:050:20:07

255 in a fresh place.

0:20:070:20:09

Standing by the sign at 255,000. 260 do I see?

0:20:090:20:14

260. 262. 265?

0:20:140:20:18

265. And 268? And eight I have.

0:20:180:20:23

And 270? That was a definite no, wasn't it? 268 on bid.

0:20:230:20:27

Standing. At 270 in a fresh place.

0:20:270:20:29

272? 272.

0:20:290:20:32

And five. And 78? No. 275 on the left.

0:20:320:20:37

Being sold for the first time. 277.

0:20:370:20:40

277.

0:20:400:20:41

280?

0:20:410:20:43

278? 278?

0:20:430:20:45

278. And nine?

0:20:450:20:48

Another thousand from you?

0:20:480:20:50

At 278, then. Far left-hand side.

0:20:500:20:53

Out? 279?

0:20:530:20:54

Is that a bid? I didn't take it. 280 I have.

0:20:560:20:58

No? You sure? At 280 then for the first time.

0:20:580:21:02

280 for the second.

0:21:020:21:04

280 for the third and final time.

0:21:040:21:07

Are you all done at 280,000? Sold at 280,000.

0:21:070:21:11

That final successful bid of £280,000 was made by Philip.

0:21:110:21:17

He and his wife, Sam, have been on the programme before

0:21:170:21:20

when they purchased a house not too dissimilar to this one.

0:21:200:21:24

They bought it back in October, 2009,

0:21:240:21:27

and turned it into their family home.

0:21:270:21:29

The couple run a civil engineering business, as well as a building

0:21:290:21:32

firm, so they are perfectly placed to take on this project.

0:21:320:21:36

I met up with them back at the house to hear their plans.

0:21:360:21:40

Sam and Philip, hello again.

0:21:400:21:42

-Now, we have met before, haven't we?

-We have, yeah.

0:21:420:21:45

-You bought a fabulous house at auction, if I remember rightly.

-Yep.

0:21:450:21:48

You did it up to an amazing standard and you were living there.

0:21:480:21:51

What has happened?

0:21:510:21:52

Year on, we are still living there, all the family, the kids you met.

0:21:520:21:55

-Yep.

-So, why have you bought this one?

0:21:550:21:57

It's a beautiful character building, again.

0:21:570:22:00

I think we can put the love back into it.

0:22:000:22:02

-So, have you bought this as an investment, guys?

-Yeah.

0:22:020:22:05

So, tell me, what was it about this house, Sam, that you like so much?

0:22:050:22:08

The rooms and just the character of it.

0:22:080:22:11

So, Sam got a good prognosis from this former doctor's day centre.

0:22:110:22:16

It is going to require a lot of hard work to remove

0:22:170:22:20

all the commercial trappings from this former medical centre.

0:22:200:22:23

But Sam and Philip intend to convert this back into a grand,

0:22:230:22:27

five-bedroom house,

0:22:270:22:29

using the planning permission that has already been granted.

0:22:290:22:33

So, how far are you going to go with putting the character back in?

0:22:330:22:36

Because, you know, it could be a bit of a money pit, this house,

0:22:360:22:38

because it's so big. Lots of rambling rooms and corridors.

0:22:380:22:42

We aim to make it into a five-bed family house -

0:22:420:22:45

with two bedrooms upstairs, en suite.

0:22:450:22:48

These rooms, I think, will stay the same.

0:22:480:22:50

They'll just be refurbed, basically.

0:22:500:22:52

-And what about turning it into flats as opposed to one family house?

-No.

0:22:520:22:56

We know how to make this into a nice house.

0:22:560:22:59

And it will sell.

0:22:590:23:01

On top of the £280,000 they paid at auction,

0:23:010:23:05

Philip and Sam have budgeted 75 to £85,000 for the work.

0:23:050:23:11

So, their total could reach 365,000,

0:23:110:23:15

and they reckon five to seven months should be sufficient.

0:23:150:23:18

But what about the opportunity at the back?

0:23:180:23:22

Did they consider a potential development out there?

0:23:220:23:24

We did, but then you'd lose the space for the drive.

0:23:240:23:27

A house of this quality and size, you need parking, off street parking.

0:23:270:23:32

Guys, it's been fantastic meeting you again.

0:23:320:23:35

I'm really excited to see what you do, and put your magic touch on it.

0:23:350:23:39

-Good luck. Philip, lovely to see you again. Sam, thank you.

-Thank you.

0:23:390:23:44

Well, it's not like Sam and Philip are novices.

0:23:440:23:47

And we know from their other project, they really can do this,

0:23:470:23:51

with bells, whistles and knobs on.

0:23:510:23:54

But I am not so sure about their plans this time.

0:23:540:23:57

Is there a market for such a huge house in this area?

0:23:570:24:00

On this busy main road? Will they find their buyer?

0:24:000:24:04

You can find out later on in the programme.

0:24:040:24:07

Coming up, in Devon,

0:24:080:24:10

this house has a large living room and small kitchen.

0:24:100:24:13

So, what are you going to do?

0:24:130:24:15

Of course, knock this wall down.

0:24:150:24:18

We return to Kent to find out if Philip and Sam's renovation

0:24:180:24:22

-impressed the experts.

-It's fantastic.

0:24:220:24:25

It is a lovely property. It's been done to a high standard.

0:24:250:24:28

But first, in Manchester.

0:24:290:24:32

Is Nasser happy with his hard graft on this terrible terrace?

0:24:320:24:36

I'm just proud of what I've done, really.

0:24:360:24:38

Let's make our way back to Manchester,

0:24:430:24:45

and the suburb of Gorton, where I viewed what should have been

0:24:450:24:48

a lovely Victorian terrace.

0:24:480:24:50

But I was shocked to find the house had been converted into two

0:24:540:24:58

pokey one-bedroom flats.

0:24:580:25:00

And the interior was a real horror show.

0:25:000:25:02

# With a little bit of shock, shock, horror! #

0:25:020:25:06

The property was riddled with rot and damp.

0:25:070:25:10

That is extraordinarily damp.

0:25:110:25:14

A hole in the roof had allowed rain to flow throughout the building.

0:25:140:25:19

But there was worse to come - the rear wall that had

0:25:200:25:23

partially collapsed.

0:25:230:25:24

Which is clearly an absolute disaster!

0:25:240:25:28

To the rescue, came property developer Nasser.

0:25:310:25:35

He purchased the property

0:25:350:25:36

at auction, along with a business partner,

0:25:360:25:38

for £37,000,

0:25:380:25:40

12 grand over the guide price.

0:25:400:25:43

-Tell me why you wanted to buy this place.

-It's a challenge.

0:25:450:25:50

It does need a lot of work, probably rebuilding from new.

0:25:500:25:54

From what I've seen.

0:25:540:25:57

Nasser has seemed ready and able to rise to the challenge and save

0:25:580:26:02

this property from ruin, but could he do that and still make a profit?

0:26:020:26:07

Well, nearly seven months later, we're back.

0:26:110:26:14

# Somebody save me!

0:26:140:26:21

# Let your warm hands break right through and...

0:26:210:26:25

# Save me! #

0:26:250:26:29

The two flats are now a single warm and welcoming three-bedroom house.

0:26:290:26:35

There are still finishing touches to do,

0:26:350:26:37

but it looks like he has done a tremendous job.

0:26:370:26:40

Even though it's not finished 100%, I would say 99%.

0:26:400:26:45

But I am proud, you know? I'm glad where I am with it.

0:26:450:26:50

The dank odour of damp has been banished

0:26:540:26:57

and the house is now bright and fresh.

0:26:570:26:59

You sort of really didn't have light or room or space

0:27:020:27:06

when you walked in, you know? Like walking into a tomb.

0:27:060:27:09

And it's nice. It's nice to have the space, you know.

0:27:090:27:12

It's been a monumental undertaking, involving dry lining

0:27:150:27:19

and plastering all the walls and ceilings,

0:27:190:27:22

fitting new floor joists and laying flooring,

0:27:220:27:25

as well as installing new electrics and plumbing.

0:27:250:27:28

Nasser's budget also took a big hit

0:27:390:27:42

on new double glazing and repairing the roof.

0:27:420:27:45

And we have not even dealt with the rear of the house yet.

0:27:450:27:48

Nasser has completely rebuilt the rear wall,

0:27:540:27:58

first of all fixing the broken

0:27:580:28:00

sewage pipe below the surface that caused the wall to collapse,

0:28:000:28:04

and then repairing the damaged foundations.

0:28:040:28:06

To be quite honest with you, if I bought a piece of land

0:28:100:28:13

and built it, it would have been quicker and cheaper probably for me.

0:28:130:28:17

There was time consuming, not to mention expensive, work.

0:28:170:28:23

So, how much has Nasser spent on the renovation so far?

0:28:230:28:26

I've not worked it out, but I would say

0:28:260:28:30

in the region between 30 to 35,000. So far.

0:28:300:28:34

Because I know only how much I had when I started

0:28:340:28:36

and I know how much I have left.

0:28:360:28:38

There are still odds and ends to do,

0:28:380:28:42

but his estimated final budget should be around £35,000.

0:28:420:28:47

Add that to the purchase price of 37,000

0:28:470:28:50

and the total investment here is £72,000.

0:28:500:28:53

Even though the majority was spent on structural repairs,

0:28:550:28:59

Nasser hasn't skipped on the finish.

0:28:590:29:02

He has fitted lovely oak doors throughout

0:29:020:29:05

and also oak flooring in the reception room.

0:29:050:29:08

Installing a new wide staircase has allowed Nasser to fit

0:29:080:29:12

a WC into the space underneath.

0:29:120:29:17

But I do hope he is not investing too much money here,

0:29:170:29:20

thereby exceeding the ceiling price for properties in this area.

0:29:200:29:24

Money-wise, I know I won't lose.

0:29:240:29:27

You know, I got a debt cheap, really, in a way.

0:29:270:29:29

If I don't make a profit, I've not lost.

0:29:290:29:31

I'm just proud of what I have done, really.

0:29:310:29:34

We asked two local estate agents

0:29:390:29:41

for their opinions.

0:29:410:29:44

The owner has done a great deal of work to the house,

0:29:440:29:47

far more so than I probably would have anticipated, really.

0:29:470:29:49

The property is almost there now

0:29:490:29:51

and there is very little to do internally,

0:29:510:29:53

other than maybe some minor decoration.

0:29:530:29:55

My overall impressions on this property are very good.

0:29:550:29:58

I think the owner has done it to a very good standard.

0:29:580:30:01

Particularly impressed with what he did with the space

0:30:010:30:03

using the downstairs cupboard as a toilet.

0:30:030:30:05

I think he'll do well with it.

0:30:050:30:07

How much could this place achieve on the rental market?

0:30:090:30:12

I think this property would rent well, especially in this market.

0:30:130:30:16

I think you will find a tenant no problem at all,

0:30:160:30:19

looking at about £500 to £525 per calendar month.

0:30:190:30:22

I would genuinely anticipate a rental figure of between £525

0:30:220:30:27

and £550 per calendar month.

0:30:270:30:29

Those figures, if achieved, would give Nasser

0:30:290:30:32

and his business partner a healthy rental yield

0:30:320:30:35

of between eight and nine percent.

0:30:350:30:38

But they are more interested in selling.

0:30:380:30:40

So, bearing in mind their total outlay of £72,000,

0:30:400:30:45

what could that make?

0:30:450:30:46

I think you would probably be looking at somewhere

0:30:460:30:49

in the region of 70 to £75,000 for it.

0:30:490:30:51

I would genuinely anticipate an asking price of between 75,000

0:30:510:30:56

and £80,000.

0:30:560:30:58

Those valuations could see Nasser

0:31:000:31:02

and his business partner making a loss of £2,000

0:31:020:31:06

or a profit, before taxes and expenses, of as much as 8,000.

0:31:060:31:11

What does Nasser think about that?

0:31:110:31:13

I reckon, really, I should get between 95 to 105.

0:31:130:31:18

And that's what my target will be.

0:31:180:31:20

I sincerely hope Nasser receives his asking price as due reward

0:31:250:31:29

for all his hard work.

0:31:290:31:31

-So, would he return to another auction?

-Yes, I would.

0:31:340:31:38

It is a challenge and I enjoy it.

0:31:380:31:41

Today, I am in Paignton, in Devon, a popular coastal holiday

0:31:460:31:49

destination on what is known as the English Riviera.

0:31:490:31:54

So, you're bored of the beach,

0:31:560:31:58

you're bored of paddling in the surf,

0:31:580:32:00

you're bored of the sand in your sandwiches.

0:32:000:32:02

Well, why not come a little bit inland

0:32:020:32:04

and you've got Occombe Woods to wonder round.

0:32:040:32:06

And, coincidentally enough, the property I'm here to see

0:32:060:32:09

is literally on the road that leads down to the woods.

0:32:090:32:13

Not particularly characterful -

0:32:130:32:15

a 1960s house, three bedrooms. Let's take a look.

0:32:150:32:19

The road itself is nice enough - wide, tree-lined and nicely kept.

0:32:190:32:25

As always, let's hope we find the house in the same condition.

0:32:250:32:28

Actually, forget it, I can't go in until...

0:32:320:32:35

I made a comment about that.

0:32:350:32:37

What an extraordinary garden!

0:32:390:32:41

And with a little huffing...

0:32:430:32:45

and plenty of puffing,

0:32:450:32:48

I finally made my way to the top,

0:32:480:32:51

where you can enjoy the view, but not much else.

0:32:510:32:55

As for kicking about a football or firing up a barbie, forget it.

0:32:550:32:59

The severe slope means this garden is not really a useful space at all.

0:32:590:33:04

So, after all that exertion, let's take a tour inside.

0:33:040:33:08

Uf! Well! Having taken an intake of oxygen

0:33:080:33:11

and some anti-altitude sickness tablets,

0:33:110:33:15

we finally enter the house.

0:33:150:33:18

And quite pleasant it is, too.

0:33:180:33:19

Somebody took the carpets out to see the floorboards.

0:33:190:33:22

Would you strip those back? Maybe, maybe not.

0:33:220:33:24

Good size entrance here,

0:33:240:33:27

a little corridor down to the kitchen,

0:33:270:33:29

stairs to the bedrooms

0:33:290:33:31

and then through to the main room in the house.

0:33:310:33:34

It's a nice surprise.

0:33:340:33:35

It's a double aspect living room-dining room.

0:33:350:33:38

A little balcony out there. Actually, it's by another door.

0:33:380:33:40

I'm noticing straightaway, there are far too many doors.

0:33:400:33:43

But it's a good size space with an open fire, which is good,

0:33:430:33:47

and then very typical of the period,

0:33:470:33:50

a serving hatch through to the kitchen.

0:33:500:33:53

So, what are you going to do?

0:33:530:33:55

Of course, knock this wall down, tear that out,

0:33:550:33:57

create a really nice kitchen-family dining area.

0:33:570:34:01

Maybe open that out onto a set of patio doors,

0:34:010:34:03

so you can stare up at the mountain in front of you.

0:34:030:34:06

And, as a starting point, I have not seen anything here that worries me.

0:34:060:34:13

You might want to level out a portion

0:34:130:34:16

of the steeply tiered garden to create a patio.

0:34:160:34:20

But I'd recommend calling in some expert help to avoid a landslide.

0:34:200:34:23

The last thing you want when you move this mountain

0:34:230:34:26

is the garden landing inside your house.

0:34:260:34:28

# I can move, move, move Any mountain. #

0:34:280:34:33

Back inside and upstairs you've got a standard three-bedroom layout.

0:34:360:34:40

Two good-sized doubles and a smaller bedroom at the front,

0:34:430:34:46

with a bathroom and a separate loo.

0:34:460:34:48

You could remove the wall to create one family-sized bathroom.

0:34:490:34:54

There is no shortage of space in this property

0:34:540:34:57

and I reckon there's more space you could utilize elsewhere.

0:34:570:35:00

With planning permission,

0:35:040:35:05

this integrated garage could be converted into extra accommodation,

0:35:050:35:09

as several other houses on the street have done.

0:35:090:35:12

To discover more about the potential for this property,

0:35:120:35:16

we asked a local estate agent to take a look around.

0:35:160:35:19

First impression of this property is that it has great potential.

0:35:190:35:22

The gardens are steep.

0:35:220:35:24

However, they do offer a good degree of privacy.

0:35:240:35:28

A good landscape gardener could make a really good job of it.

0:35:280:35:31

Is there potential to let the property to tenants?

0:35:330:35:36

Is there much demand locally?

0:35:360:35:37

Fully renovated, this would be a very rentable property.

0:35:370:35:40

I would be looking between £700 and £750 per calendar month.

0:35:400:35:44

What could it achieve once renovated?

0:35:440:35:46

As a completely renovated property,

0:35:460:35:50

we would be looking at between 150 and 160,000.

0:35:500:35:53

Well, the house itself, pleasant enough.

0:35:570:36:00

Spend a bit of time and effort and it could be a nice place to live.

0:36:000:36:03

However, the thing which I will never forget

0:36:030:36:05

about this property is this extraordinary garden -

0:36:050:36:08

absolutely ideal for a mountain goat or an Everest explorer.

0:36:080:36:13

Let's see who bought it. Scale the heights of this one!

0:36:130:36:17

When it went under the hammer.

0:36:170:36:19

Someone might start me off at £100,000 to start?

0:36:210:36:25

I've got £100,000 at the back of the room.

0:36:250:36:27

Looking for five more. Five more now on the aisle. 110. 115.

0:36:270:36:31

Yep, 115. 120.

0:36:310:36:34

The one, 116. 117 then.

0:36:340:36:38

117, seated. 118?

0:36:380:36:40

118 now. You're not together, are you?

0:36:400:36:43

No, that's fine.

0:36:430:36:46

119? 119. 120? 120 now.

0:36:460:36:49

121 against either of you. 120 here. 121.

0:36:490:36:54

Two? 122. Three? 123.

0:36:540:36:58

And four? 124 now.

0:36:580:37:00

125.

0:37:000:37:01

125. One more for 126? No?

0:37:030:37:06

£125,000. There is no further advance on that?

0:37:060:37:11

Really sure?

0:37:110:37:13

Sure, sure?

0:37:130:37:14

That final bid of £125,000

0:37:140:37:18

was made by the husband and wife Rick and Jackie.

0:37:180:37:21

They live locally and run a diving charter boat.

0:37:260:37:30

# Well, they call me deep-sea diver

0:37:300:37:34

# Cos I can dive so far down. #

0:37:340:37:38

They have renovated their own homes in the past,

0:37:380:37:40

but recently decided to take the plunge

0:37:400:37:43

and dive into the world of property development.

0:37:430:37:46

This is their first investment.

0:37:460:37:48

-Jackie, Rick, lovely to meet you.

-Hello.

-Congratulations.

-Thank you.

0:37:480:37:53

Tell me why you wanted to buy the house.

0:37:530:37:55

We were looking at two at the auction,

0:37:550:37:58

and this one was up first.

0:37:580:38:00

And we set a price guide and we were just lucky enough to get it.

0:38:000:38:06

Had the other one come up first, you would've bought that one.

0:38:060:38:08

-Maybe, yes.

-Really?

0:38:080:38:09

-What was it you liked?

-I suppose...

0:38:090:38:12

Probably the ones we've done in the past have been older properties

0:38:120:38:16

and we were hoping this would be an easier one to do.

0:38:160:38:20

Although that's likely to be the case here,

0:38:200:38:23

it doesn't always follow that a house built around 50 years ago,

0:38:230:38:26

like this one, will have fewer problems than an older one.

0:38:260:38:29

But for their first investment, I think they've chosen pretty well.

0:38:300:38:34

They plan to do it up and let it out.

0:38:340:38:37

What tempted you into the market right now?

0:38:370:38:41

Well, we had some money put aside

0:38:410:38:43

and it wasn't earning much interest,

0:38:430:38:46

so we decided to invest in properties.

0:38:460:38:48

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

0:38:480:38:50

-I run a dive charter boat.

-Oh, right. Great.

0:38:500:38:54

-And Jac helps me.

-And the diving round here is good?

0:38:540:38:57

Yeah, lots of wrecks, lots of things to see,

0:38:570:39:00

so, yeah, brilliant.

0:39:000:39:01

It turns out that Rick and I have a lot in common -

0:39:010:39:04

I spend much of my time on the show looking at wrecks, as well.

0:39:040:39:07

But of properties, in my case.

0:39:070:39:09

Although, this house is actually not that bad.

0:39:090:39:13

They are both keen DIYers and will do much of the work themselves,

0:39:130:39:16

calling in specialists where they need to.

0:39:160:39:19

So, what are they going to do here?

0:39:190:39:21

We are going to do the electrics, put some gas central heating in,

0:39:210:39:26

kitchen, bathroom, decorating.

0:39:260:39:29

Any plans to take out the wall behind you to the kitchen?

0:39:290:39:33

I think possibly, because of the size of the kitchen, that we will

0:39:330:39:36

take the wall out, but we are still going to weigh it up, really.

0:39:360:39:39

So, let's go on to the garden, then.

0:39:390:39:41

-Well, the mountain.

-Yes.

0:39:410:39:44

Um, what do you think about that?

0:39:460:39:47

Well, we want to do some improvements,

0:39:470:39:50

but the house is a priority first.

0:39:500:39:52

And depending on how much money we've got left in the pot, really.

0:39:520:39:56

We are struggling with it.

0:39:560:39:58

This area here we'll clear, make a patio area or something like that.

0:39:580:40:03

But we might, if we can, we may lower it

0:40:030:40:05

and put some railings up to make it safer.

0:40:050:40:08

But I really don't know about the rest.

0:40:080:40:10

We are hoping for some sort of, I don't know,

0:40:100:40:12

some sort of idea to appear while we are doing the house.

0:40:120:40:15

But I really don't know.

0:40:150:40:16

Hopefully, inspiration will strike, because at the moment,

0:40:160:40:20

I have to admit, I'm stumped.

0:40:200:40:22

# I need your sweet inspiration

0:40:220:40:28

# I need you here on my mind every hour of the day. #

0:40:310:40:37

So, what is the budget for the works?

0:40:370:40:39

We are looking at between 10 and 15.

0:40:390:40:43

Right. And what kind of timescale?

0:40:430:40:45

-About three months, we hope.

-OK. Well, good luck with this one.

0:40:450:40:48

-Thank you.

-And I hope it turns out all right.

-Thank you.

0:40:480:40:51

Thanks very much.

0:40:510:40:53

Well, a new challenge for boat owners Rick and Jackie to dive into.

0:40:550:41:00

I think that house won't prove too much of a problem,

0:41:000:41:03

however I think the garden may be a challenge too far.

0:41:030:41:07

You can find out how they get on later in the show.

0:41:070:41:10

Our would-be property tycoons were certainly eager beavers

0:41:130:41:16

when we left them.

0:41:160:41:17

-Yes, so did they grab the bull by the horns?

-Let's find out.

0:41:170:41:22

Let's return to Chatham, in Kent,

0:41:230:41:25

where I viewed this lovely looking property.

0:41:250:41:29

Inside however, it was drab and dreary.

0:41:290:41:32

It had been used as a medical centre.

0:41:320:41:35

But the period features left me breathless.

0:41:350:41:38

# Take my breath away. #

0:41:380:41:42

Well, I thought a developer could reap

0:41:450:41:48

greater financial reward by converting it into two flats.

0:41:480:41:52

I was thrilled when husband and wife developing duo Philip and Sam

0:41:520:41:56

told me they planned to restore it into one fabulous five-bedroom

0:41:560:42:00

family home.

0:42:000:42:02

They purchased this auction lot as an investment for 280,000.

0:42:020:42:07

It is a beautiful character building.

0:42:070:42:09

I think we can put the love back into it.

0:42:090:42:11

I'm really excited to see what you do, and put your magic touch on it.

0:42:110:42:16

Philip and Sam plan to return this once great property

0:42:160:42:20

to its former grandeur before selling it on.

0:42:200:42:23

I can't wait to see what they've achieved.

0:42:240:42:27

So, just over ten months later, we're back.

0:42:280:42:32

Well, the exterior looks lovely.

0:42:370:42:40

Let's begin by taking a turn around the ground floor.

0:42:400:42:43

# I'm breathless! #

0:42:440:42:47

The grand entrance makes a fabulous first impression.

0:42:490:42:52

# I'm breathless! #

0:42:560:43:00

The front reception rooms have been transformed

0:43:000:43:04

from tired and tacky office space into simply stunning.

0:43:040:43:09

When you first came, this place was offices, very bland.

0:43:100:43:14

And we basically restored it back to a family house.

0:43:140:43:18

It's lovely to see a house change

0:43:180:43:22

from an office, which destroyed all the character of the house

0:43:220:43:25

and come back to its original state.

0:43:250:43:28

It's lovely to see it finished.

0:43:280:43:29

The stained-glass windows and ornamental tiles are beautiful.

0:43:310:43:35

The couple have not only restored, they've modernised.

0:43:350:43:39

By combining this room with the kitchen

0:43:390:43:41

and hallway in between, they have created a new heart for this home.

0:43:410:43:46

-# Beautiful

-Beautiful

0:43:460:43:49

-# Beautiful

-Beautiful

0:43:490:43:53

# You make me feel so beautiful. #

0:43:530:43:57

This was the original kitchen here.

0:43:570:44:00

It extended from here to about here.

0:44:000:44:03

There was a partition wall here.

0:44:030:44:05

There was a little hallway here with another partition.

0:44:050:44:07

We took out these partitions and made this into one big, open room.

0:44:070:44:11

We had to level the floors and get all the floors to level.

0:44:110:44:14

We then fitted this modern kitchen with integrated appliances.

0:44:140:44:19

And an island.

0:44:190:44:21

And we're very pleased with it.

0:44:210:44:23

And so they should be.

0:44:230:44:26

Philip has also been rather clever with the conservatory.

0:44:270:44:31

He has turned it sideways against the house,

0:44:310:44:33

maximising the floor space.

0:44:330:44:35

Genius!

0:44:350:44:37

The original conservatory, actually, was on the same line here

0:44:380:44:42

and extended only to here.

0:44:420:44:44

So, effectively, we had the panels here and the panels here.

0:44:440:44:47

All we've done is remove the panels here and made them

0:44:470:44:51

in a straight line, which increased the size of the conservatory.

0:44:510:44:54

We had to level the floors and we re-rendered all the walls.

0:44:540:44:59

Perfect for enjoying splendid summer days like this.

0:44:590:45:03

Unfortunately, it meant the floor tiles had to be removed,

0:45:040:45:07

but the couple have added features in keeping with

0:45:070:45:10

the age of the property elsewhere.

0:45:100:45:13

At a very early stage, we realised

0:45:130:45:16

that we had to get the period features put back in it -

0:45:160:45:19

putting the panel doors back, putting all of cornices back.

0:45:190:45:22

We had to get special mouldings made

0:45:220:45:24

to suit the existing, they're not made any more.

0:45:240:45:27

So, yeah, we were very conscience trying to get the original features

0:45:270:45:30

back to the house.

0:45:300:45:31

# All I know is

0:45:310:45:33

# You may me feel so...

0:45:330:45:37

# Beautiful

0:45:370:45:39

# Beautiful

0:45:390:45:43

# Beautiful

0:45:430:45:46

# You made me feel so...

0:45:460:45:50

# Beautiful. #

0:45:500:45:53

Upstairs, the rooms have been renovated and remodelled to create

0:45:530:45:57

two bedrooms with en suite -

0:45:570:45:59

one with bathroom, the other with a shower room -

0:45:590:46:04

and three further bedrooms.

0:46:040:46:07

Philip and Sam are experienced property developers.

0:46:090:46:12

But while some couples can find it difficult working

0:46:120:46:15

and living together, their relationship positively thrives.

0:46:150:46:19

So, what's the secret of their success?

0:46:210:46:24

We get on. I think.

0:46:240:46:27

I think we just get on very well.

0:46:270:46:29

And we're both very focused

0:46:290:46:31

and we're both focused in the same direction,

0:46:310:46:33

so it's very easy to have vision and move on with properties. Yeah.

0:46:330:46:37

Sam is my best friend. And we complement each other very well.

0:46:370:46:40

I do my building and Sam is very good at the interior design.

0:46:400:46:44

The couple had hoped to spend up to £85,000 on the renovation,

0:46:460:46:50

but have spent ten grand more.

0:46:500:46:52

That's not too bad at all,

0:46:520:46:54

considering the fabulous finish here.

0:46:540:46:57

This means their total investment, including purchase price,

0:46:570:47:01

is 375,000.

0:47:010:47:04

So, what do the couple plan to do with this property

0:47:100:47:13

now that their renovation is complete?

0:47:130:47:16

The plan is to, obviously, put it on the market.

0:47:160:47:19

Try to make a profit.

0:47:190:47:21

And look for a similar property again,

0:47:210:47:24

because we really do like Victorian or Georgian buildings.

0:47:240:47:27

And it's good fun. It's good fun. It's a nice way to make a living.

0:47:270:47:31

Have Philip and Sam invested wisely

0:47:310:47:33

and is the local property market suitable

0:47:330:47:37

for a beautiful, big house like this?

0:47:370:47:40

It's not at the prime resale end of the street,

0:47:400:47:43

where ones of a similar size can sell for 100,000 more.

0:47:430:47:47

But has the couple's high-end finish earned them a premium price tag?

0:47:470:47:52

We invited two local estate agents to give us

0:47:560:47:59

their opinions.

0:47:590:48:00

When you first enter the property,

0:48:000:48:04

you are greeted by the beautiful stained-glass

0:48:040:48:06

and the period features immediately hit you.

0:48:060:48:09

The size of the property just makes it ideal for a large family

0:48:090:48:14

or even a two-generation family.

0:48:140:48:16

It's fantastic.

0:48:170:48:18

It's a lovely, lovely property. It's been done to a high standard.

0:48:180:48:21

It'll make this property so desirable,

0:48:210:48:23

but not necessarily much more valuable.

0:48:230:48:27

But it has been done to a very, very high standard.

0:48:270:48:29

Well, the experts are impressed with Philip and Sam's renovation,

0:48:300:48:33

but a note of caution has been sounded.

0:48:330:48:36

Have the couple spent too much,

0:48:360:48:39

bearing in mind their total investment of 375,000?

0:48:390:48:43

Let's find out.

0:48:430:48:45

I would market this for £475,000

0:48:450:48:49

and I would sell this property for in the excess of £450,000.

0:48:490:48:53

I would suggest the owners place the property on the market

0:48:530:48:55

for £575,000.

0:48:550:48:58

Well, that is a very wide valuation range, so it seems the location

0:48:580:49:04

has made a difference to one of the estate agents' estimates.

0:49:040:49:07

However, if the amounts in that range were achieved,

0:49:070:49:10

Philip and Sam could make a pre-tax profit

0:49:100:49:13

of between 75,000 and 200,000, minus the usual selling expenses.

0:49:130:49:19

The couple already have the house on the market,

0:49:190:49:22

so let's hear how much for.

0:49:220:49:25

We have it on the market in the 500 to 600 band.

0:49:250:49:29

So, we expect it to be somewhere in the middle.

0:49:290:49:31

Philip and Sam develop properties not only for financial reward,

0:49:330:49:37

but because they love to bring period places, like this,

0:49:370:49:40

back to life.

0:49:400:49:41

So, what's next for them?

0:49:430:49:46

We plan to carry on. We love these traditional houses.

0:49:460:49:50

If we could find another one, yeah,

0:49:500:49:51

we'd jump in and do it all over again.

0:49:510:49:53

And I for one hope we'll be there to see the results when they do.

0:49:530:49:58

We are going back to Preston, near Paignton,

0:50:050:50:07

in Devon, where earlier in the programme,

0:50:070:50:10

husband and wife, Rick and Jackie, paid £125,000

0:50:100:50:14

for this house built at the bottom of a very steep hill.

0:50:140:50:18

Although outside was going to be an uphill struggle,

0:50:200:50:23

the inside wasn't too bad.

0:50:230:50:26

Rick and Jackie planned to refurbish and then look for tenants.

0:50:260:50:30

Although they've done up their own homes in the past,

0:50:300:50:32

this was their first investment project.

0:50:320:50:35

So, let's go on to the garden, then.

0:50:350:50:38

-Well, stroke mountain.

-Yes.

0:50:380:50:42

-What do you think about that, then?

-Well,

0:50:420:50:45

we want to do some improvements, but the house is a priority first.

0:50:450:50:49

This area here we will clear, make a patio area or something like that.

0:50:490:50:52

But I really don't know about the rest.

0:50:520:50:54

We're hoping for some sort of idea

0:50:540:50:56

to appear while we are doing the house. But I really don't know.

0:50:560:51:00

Five and a half months have passed.

0:51:000:51:04

And we meet Jackie and Rick again back at the house by the hill

0:51:040:51:07

to see what they've achieved.

0:51:070:51:09

Well, no surprise, the mountain's not moved.

0:51:120:51:15

But there have been some changes lower down.

0:51:150:51:18

A patio door has been installed,

0:51:180:51:20

which lets much more light into the living room.

0:51:200:51:24

Losing the old fire surround and adding an electric fire

0:51:270:51:31

is a big improvement.

0:51:310:51:32

And that serving hatch is no more.

0:51:320:51:35

You can now carry your curry out from the kitchen.

0:51:360:51:40

It has been refitted with modern units and new appliances.

0:51:400:51:44

The former door has been bricked up and the larder removed.

0:51:470:51:52

That has enabled a longer work surface to the added,

0:51:520:51:55

as Rick explains.

0:51:550:51:57

We took out the larder, removed the back door,

0:51:570:52:01

opened up the serving hatch into a doorway into the dining room.

0:52:010:52:06

As it was, we wouldn't have got all the cabinets in.

0:52:060:52:10

And now, we've made a much larger kitchen.

0:52:100:52:13

It's my first time fitting a kitchen and, yeah, I think it's good.

0:52:130:52:17

I'm quite please with it.

0:52:170:52:18

The house has had a complete rewire and it has been re-plumbed,

0:52:180:52:22

plus new central heating has gone in.

0:52:220:52:25

They also discovered woodworm in the hall that needed treating.

0:52:250:52:29

Upstairs, the two front bedrooms are finished.

0:52:290:52:32

There is new carpet throughout

0:52:340:52:36

and they just need the doors to be re-hung.

0:52:360:52:39

Along the landing, the separate loo is gone.

0:52:390:52:43

Rick and Jackie have removed the dividing wall

0:52:430:52:46

and created a lovely family bathroom.

0:52:460:52:50

It certainly makes the most of the extra space they've gained.

0:52:510:52:55

We took down a wall between the toilet and bathroom

0:52:550:52:59

and then moved that wall out

0:52:590:53:03

so we could fit a bath... a full-sized bath in.

0:53:030:53:05

It was my first attempt at tiling an entire bathroom, and so,

0:53:050:53:09

yeah, quite pleased.

0:53:090:53:11

Next to the bathroom, the second double bedroom overlooks the garden.

0:53:120:53:17

Rick is still waiting for inspiration for the top of the hill,

0:53:180:53:22

but down at the bottom, he has got a plan.

0:53:220:53:25

We are thinking of getting rid of some of the steps.

0:53:250:53:29

I'm worried about someone falling down. You know, it's quite steep.

0:53:290:53:33

So, we're hoping to sort of, like, tier it

0:53:330:53:35

in a way, and move the steps, so they're not all in one direct line.

0:53:350:53:41

Apart from Rick, Jackie and their children, Will and Emily,

0:53:430:53:45

lending a hand, who else has been involved here?

0:53:450:53:48

We've had a plasterer in and a plumber and an electrician,

0:53:480:53:52

but most of the other work, all the changing,

0:53:520:53:56

taking walls down and changing the layout was done by ourselves.

0:53:560:53:59

The steps leading to the front door have moved away from the house,

0:53:590:54:03

so Rick has got to demolish them and rebuild.

0:54:030:54:07

And although they've treated the woodworm,

0:54:070:54:09

they need new joists in the wall.

0:54:090:54:12

So how long will all that take?

0:54:120:54:14

Being optimistic, I'm hoping we'll have it done in another month.

0:54:140:54:19

Maybe not all the garden, but the majority of it.

0:54:190:54:22

Rick reckons the work should take around a month to complete

0:54:240:54:28

and that he'll be just a fraction over

0:54:280:54:30

that upper budget limit of 15,000.

0:54:300:54:33

Added to that purchase price of 125,000,

0:54:330:54:37

that makes their total outlay here just over 140,000.

0:54:370:54:43

Time to see what two estate agents make of the property.

0:54:460:54:52

I like the idea of knocking the bathroom and toilet into one

0:54:540:54:58

to make a bigger bathroom.

0:54:580:55:00

And also the back door they moved to make a bigger kitchen, as well.

0:55:000:55:03

It's a good idea.

0:55:030:55:04

It's very appealing. The kitchen is very modern.

0:55:040:55:07

Again, the bathroom is... It flows a lot better

0:55:070:55:09

than it used to do.

0:55:090:55:11

The addition of the patio doors to go into the garden have made

0:55:110:55:15

a big impact on the property.

0:55:150:55:16

How much rental income could the house achieve?

0:55:160:55:21

I'd put this property up for rent on the open market at between

0:55:210:55:25

£700 and £725 per calendar month.

0:55:250:55:28

The rental income they're going to get

0:55:280:55:30

is about £750 per calendar month.

0:55:300:55:32

Those rental incomes would generate a yield of around 6% to 6.5%.

0:55:320:55:37

But Jackie is having second thoughts about letting the house.

0:55:390:55:43

We think we may have got a bit too involved with this place to rent it.

0:55:430:55:48

So we may be wanting to sell it.

0:55:480:55:51

Well, if resale is the route, will the estate agents value it

0:55:510:55:55

above the £140,000 that Rick and Jackie have invested?

0:55:550:55:59

We are probably looking at fetching somewhere in the region

0:55:590:56:03

of 155,000 and putting it up for sale at 160,000.

0:56:030:56:07

I would look to market it somewhere in the region of 165,000 to 169,950.

0:56:070:56:12

So, after all that hard work, that valuation range

0:56:120:56:15

could generate a profit of between £13,000 and nearly £30,000,

0:56:150:56:19

before tax and expenses. They must be delighted about that.

0:56:190:56:24

-Yeah, pleased with that.

-Yeah.

0:56:270:56:29

If we sold it, it'd be a good return, so, yeah.

0:56:290:56:32

Can't be unhappy with that.

0:56:320:56:34

I wouldn't want something with this amount of work...

0:56:350:56:38

I mean, we have had help from our children, Will and Emily,

0:56:380:56:41

and my mum has been across and has done quite a lot for us.

0:56:410:56:45

Next time, I think maybe something with not so much work.

0:56:450:56:48

From perfect homes to shrewd investments,

0:56:500:56:53

we will have lots more properties for you next time

0:56:530:56:55

on Homes Under The Hammer.

0:56:550:56:57

-Look forward to seeing you then.

-Goodbye for now.

-Goodbye.

0:56:570:57:00

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0:57:040:57:07

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