0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:05Buying a property and doing it up is a dream for some,
0:00:05 > 0:00:08but for many, it's a reality.
0:00:08 > 0:00:10So are you a doer or a dreamer
0:00:10 > 0:00:13when it comes to buying homes under the hammer?
0:00:39 > 0:00:44Buying at auction is exciting, but also it can be quite stressful.
0:00:44 > 0:00:45It all happens so quick.
0:00:45 > 0:00:49Literally in a split second, you could have bought a house!
0:00:49 > 0:00:51So if you are planning on buying at auction,
0:00:51 > 0:00:53just make sure you're prepared!
0:00:53 > 0:00:55So let's find out what happened
0:00:55 > 0:00:58when the hammer went down on today's programme.
0:00:59 > 0:01:03First up, I give this mid-terrace in County Durham the once-over
0:01:03 > 0:01:06and dish out some words of wisdom.
0:01:06 > 0:01:08Do not try this at home!
0:01:09 > 0:01:12I'm in an attractive four-bed property in Lewisham
0:01:12 > 0:01:14which leaves me unsatisfied.
0:01:14 > 0:01:19And this is where it gets really disappointing!
0:01:19 > 0:01:21And in Tylorstown, Mid Glamorgan,
0:01:21 > 0:01:24there's a two-flat conversion which needs some urgent attention.
0:01:24 > 0:01:29All in all, it's really bad!
0:01:31 > 0:01:33All these properties were sold at auction.
0:01:33 > 0:01:36We'll find out who bought them and what they paid for them
0:01:36 > 0:01:38- when they went under the hammer. - £10,500.
0:01:43 > 0:01:47Well, today I'm in the North East of England
0:01:47 > 0:01:50underneath the wings of Antony Gormley's famous sculpture, Angel of the North.
0:01:50 > 0:01:53Once a controversial work of art,
0:01:53 > 0:01:56it's become a symbol of the North East.
0:01:56 > 0:02:0120 metres tall with a wingspan of 54 metres
0:02:01 > 0:02:05and seen by an estimated 90,000 people travelling on nearby roads and rail links.
0:02:07 > 0:02:14# I sit and wait Does an angel contemplate my fate? #
0:02:19 > 0:02:22Now a much-loved fixture of the landscape,
0:02:22 > 0:02:28this statuesque angel was designed to create a sense of embrace.
0:02:28 > 0:02:32But will the house I'm here to see be just as welcoming?
0:02:32 > 0:02:34I'd better pop over there and say "halo"!
0:02:37 > 0:02:40# I'm loving angels instead.#
0:02:40 > 0:02:42Well, over to the south of Birtley
0:02:42 > 0:02:45and the property I'm here to see.
0:02:45 > 0:02:47From the outside it looks fairly angelic.
0:02:47 > 0:02:52The guide price, though, might tempt you even further. £35,000!
0:02:52 > 0:02:55Let's take a look.
0:03:03 > 0:03:07These solid little red brick houses were built to last.
0:03:07 > 0:03:11This is a great residential area with excellent transport links
0:03:11 > 0:03:14to Durham, Newcastle and Sunderland.
0:03:14 > 0:03:16With its attractively low guide price,
0:03:16 > 0:03:19I can't wait to see what's inside.
0:03:19 > 0:03:23Through the front door, a little entrance hall. Stairs up to your bedrooms
0:03:23 > 0:03:26and I like the fact that there's a separate door here
0:03:26 > 0:03:30which means that you can separate the front lounge from the entrance - keeps the cold out.
0:03:30 > 0:03:31Lounge itself - not too bad.
0:03:31 > 0:03:35It's got what you need - a few nice details.
0:03:35 > 0:03:38A fire there - I mean, it's not to everyone's taste,
0:03:38 > 0:03:40but at least it's an open one.
0:03:40 > 0:03:44Sadly, the house gets worse, the further you go into it.
0:03:44 > 0:03:48Back here you've got this kitchen which isn't a bad space,
0:03:48 > 0:03:51but obviously needs some tender loving care.
0:03:51 > 0:03:55Then further, there's the only loo and bathroom in the property,
0:03:55 > 0:03:58and that really is in a bit of a state.
0:03:58 > 0:04:01So reasonable at the front... and getting worse.
0:04:01 > 0:04:05In general, though, for that guide price, not a bad start.
0:04:05 > 0:04:07OK, so it's not exactly heavenly,
0:04:07 > 0:04:11but with some love and attention, this place could get its glow back.
0:04:13 > 0:04:17# And I know I'll always be blessed with love. #
0:04:21 > 0:04:24So upstairs, and there's a really nice landing for the size of house,
0:04:24 > 0:04:28I say that because often landings are forgotten -
0:04:28 > 0:04:31but they really give a spacious feel, and for the sake of losing
0:04:31 > 0:04:35a bit of space in the bedroom I think it's a really good thing to go for.
0:04:35 > 0:04:36Up here it is a fairly simple layout.
0:04:36 > 0:04:40Just two bedrooms - one at the back which is fairly small.
0:04:40 > 0:04:44But then towards the front, a really nice-sized double bedroom. So... Oh, squeaky floorboards!
0:04:44 > 0:04:48Apart from the fact that you might consider bringing the bathroom up here,
0:04:48 > 0:04:51I don't think so - leave it as it is, renovate it,
0:04:51 > 0:04:55do it up, and you've got yourself a great little house!
0:04:55 > 0:04:59It looks a little tired and worn at the moment, but this would make a great family home.
0:05:01 > 0:05:04Whilst I would keep the current bathroom where it is,
0:05:04 > 0:05:06I do think that if possible,
0:05:06 > 0:05:10it would be great to have a more convenient convenience too.
0:05:10 > 0:05:11And that means upstairs.
0:05:14 > 0:05:17At the rear of the property, a little courtyard area,
0:05:17 > 0:05:21but also an opportunity, because either side of the house,
0:05:21 > 0:05:24the properties have actually done a double-storey extension at the back here,
0:05:24 > 0:05:28and it's a fairly obvious thing to do, to build above the existing loo here -
0:05:28 > 0:05:30that would create lots of space upstairs
0:05:30 > 0:05:33and possibly you could use the wall of the extension next door -
0:05:33 > 0:05:37bit of a party-wall issue, but it might save on your building costs.
0:05:37 > 0:05:40But a bit further out here, this is the rear alleyway,
0:05:40 > 0:05:43and as you can see, it's in quite nice condition,
0:05:43 > 0:05:46recently tarmacked, and that bodes well for the area.
0:05:48 > 0:05:51When it comes to spending a penny on my thoughts, that's it,
0:05:51 > 0:05:55but what does a local estate agent reckon?
0:05:55 > 0:05:58The property is a good standard terraced house, well-built -
0:05:58 > 0:06:00just needs some work inside.
0:06:00 > 0:06:04If it was done to a good high standard, it would be
0:06:04 > 0:06:08a great rental property, providing good income for an investor.
0:06:08 > 0:06:12- Otherwise it will be a good first-time buyer's house. - All sounding good!
0:06:12 > 0:06:16What does she think this one could fetch on the open market?
0:06:16 > 0:06:21Once renovated, I do feel that this property could achieve £70,000 in good condition.
0:06:21 > 0:06:27Great news, especially given that the guide price was just £35,000.
0:06:27 > 0:06:31But how would it fare if it was to be a rental?
0:06:31 > 0:06:33I think this property, once it's renovated,
0:06:33 > 0:06:36could achieve £400 per calendar month.
0:06:36 > 0:06:39Well, it could definitely do with a clean,
0:06:39 > 0:06:43but all in all, intrinsically this is a fantastic house.
0:06:43 > 0:06:46Good rental yields, oh - and a nice place to live!
0:06:46 > 0:06:49Let's see who fancied it when it went under the hammer.
0:06:49 > 0:06:52Can I have £35,000 to start?
0:06:52 > 0:06:55£35,000 on the left-hand side. Do I have 37 anywhere else?
0:06:55 > 0:07:00I've got the one bid, the lady at £35,000. Do I have 37 anywhere else?
0:07:00 > 0:07:0737, the gentleman in the blue jumper at the back. 39, 39 bid. 41. 41 bid. 43. No?
0:07:07 > 0:07:11Gentleman in the blue jumper at the back wall. £41,000. Do I have 43 anywhere else?
0:07:11 > 0:07:14Gentleman in the front row at £43,000.
0:07:14 > 0:07:19Do I have 41 anywhere else? Sorry, 41? 44. 44 bid.
0:07:19 > 0:07:2245. 45. 46. 46. 47.
0:07:22 > 0:07:25Lady standing £46,000. I saw a hand over there somewhere.
0:07:25 > 0:07:28Anybody else in at 47?
0:07:28 > 0:07:30We're here and we're selling it once at 46.
0:07:30 > 0:07:35I'm selling for the second time at £46,000.
0:07:35 > 0:07:3746,500 bid - gentleman standing.
0:07:37 > 0:07:4147. 47. 47 bid. 47,500.
0:07:41 > 0:07:4547,500 bid. 48.
0:07:45 > 0:07:49No? To the gentleman standing in the T-shirt, 47,500.
0:07:49 > 0:07:51And selling once for 47,500.
0:07:51 > 0:07:57I'm selling for the second time at £47,500. 48,000 the lady bid.
0:07:57 > 0:08:00Lady on the left-hand side with £48,000.
0:08:00 > 0:08:03We're selling to the lady on the left-hand side for £48,000.
0:08:03 > 0:08:07And we are selling once at 48, for the second time at £48,000.
0:08:07 > 0:08:10Sold to the lady on the left-hand side.
0:08:10 > 0:08:12She got there in the end!
0:08:12 > 0:08:16With that final bid of £48,000, the house sold to Pamela.
0:08:16 > 0:08:1813, lucky for some!
0:08:20 > 0:08:26She owns her own hairdressing salon and spa as well as a couple of gift shops. A busy lady, then!
0:08:27 > 0:08:29Is she moving into property development too?
0:08:29 > 0:08:33I caught up with her at her new purchase to find out.
0:08:33 > 0:08:38- Pamela, good to meet you. Congratulations!- Thank you.- Tell me why you wanted to buy this place.
0:08:38 > 0:08:41To be truthful, I didn't know I was going to buy it.
0:08:41 > 0:08:44The night before, it was a Sunday, I got a quick e-mail through,
0:08:44 > 0:08:46which was telling me about auctions.
0:08:46 > 0:08:52I said to my husband, there's a couple of houses here. He went, "Oh yeah." Left it.
0:08:52 > 0:08:54On the Monday, I took my daughter to Operatics, and I said,
0:08:54 > 0:08:58"I might be a little bit late - can you pick Mia up if I'm late?"
0:08:58 > 0:09:01"Where are you going?" I said I might have a look at the auctions. "Oh, yeah!"
0:09:01 > 0:09:03He went, "Pamela!" I said, "What?"
0:09:03 > 0:09:06He says, "What have you got the cheque book for?" I said, "You never know!"
0:09:06 > 0:09:08And he went, "Yeah!"
0:09:08 > 0:09:12So off I went to the auctions, never been in one before. I hurried in.
0:09:12 > 0:09:16There was thousands of people there, so I walked through and they said, "Plot 13, Birtley."
0:09:16 > 0:09:19I went, "Oh, yeah?" And my hand just went... and I was just going like that.
0:09:19 > 0:09:22- And before I knew it, I'd bought the house.- Gosh!
0:09:22 > 0:09:26But you don't randomly decide to... buy a house!
0:09:26 > 0:09:27I mean, it isn't a bar of chocolate!
0:09:27 > 0:09:31No, I think because I work in the area,
0:09:31 > 0:09:34and know that a lot of people are wanting to rent places
0:09:34 > 0:09:36and a lot of people can't afford to buy places,
0:09:36 > 0:09:39I think it's a big rental area so hopefully, I thought,
0:09:39 > 0:09:43if I seen something that was in our price bracket
0:09:43 > 0:09:46that I could go for, then hopefully I'll make something of it.
0:09:46 > 0:09:52- Had you looked at the house before you bought it?- No, never seen it. - Had you read the legal pack?- No.- Ah!
0:09:52 > 0:09:55- So you hadn't seen or read the legal pack?- No.- So you went on what, then?
0:09:55 > 0:09:59- The auction particulars?- Impulse? - Impulse.- Impulse.
0:10:00 > 0:10:03Bidding blind is a very dangerous game to play.
0:10:03 > 0:10:08I cannot emphasise enough how badly it can all go wrong.
0:10:08 > 0:10:11But in this case Pamela seems to have lucked out.
0:10:11 > 0:10:13- Do you think you got away with it? - Yes.
0:10:13 > 0:10:15What did you think when you first saw it, having bought it?
0:10:15 > 0:10:19I knew in the auction what it was up for. I knew it would be in a state when I got it.
0:10:19 > 0:10:22So in the back of my mind, I thought,
0:10:22 > 0:10:26how much would I expect to have to renovate it with.
0:10:26 > 0:10:30So in the back of my mind I had an idea.
0:10:30 > 0:10:33I thought maybe it might need a new kitchen, a new bathroom,
0:10:33 > 0:10:35and obviously your normal things.
0:10:35 > 0:10:39My first thing is to take out the bathroom, completely take it out
0:10:39 > 0:10:43and there's wood on the ceiling - that needs to come down.
0:10:43 > 0:10:45So I'm not quite sure what we'll find when we do that.
0:10:45 > 0:10:47We might need to put a new ceiling in there.
0:10:47 > 0:10:50A new kitchen - that's all got to come out.
0:10:50 > 0:10:54Upstairs, I may do something with the loft - I'm not quite sure.
0:10:54 > 0:10:58The bedrooms - there's fitted wardrobes that need to be pulled out too.
0:10:58 > 0:11:03And then all of the carpets and everything. I may reposition this door - I'm not quite sure yet.
0:11:03 > 0:11:05So a sizeable list.
0:11:05 > 0:11:09But Pamela's aiming to do it for £8,000-£10,000
0:11:09 > 0:11:13and in just nine weeks, using tradesmen for most of the work.
0:11:13 > 0:11:17It may be ambitious, as this is her first property project.
0:11:17 > 0:11:21The only other house she owns is with her husband Phillip.
0:11:21 > 0:11:25So what does she plan to do with it when it's all complete?
0:11:25 > 0:11:27If it's better for us to sell it, I may sell it,
0:11:27 > 0:11:30then put some money down on another property, and just build it up.
0:11:30 > 0:11:33Or maybe build up a portfolio. I don't know. Who knows?
0:11:33 > 0:11:35It might be the beginning of something.
0:11:35 > 0:11:40And will you look at the property before you buy them next time?
0:11:40 > 0:11:41It depends. Depends.
0:11:41 > 0:11:45- You got away with it this time, but it could have been horrendous.- Yes.
0:11:45 > 0:11:50- I probably might view it! - Probably might?!
0:11:50 > 0:11:55It depends on where I'm at and what I'm thinking of at the time. It depends on how impulse I am.
0:11:55 > 0:11:58Do not try this at home!
0:11:58 > 0:12:01- But anyway, good. It's great to meet you.- Thank you.
0:12:01 > 0:12:05- Congratulations and we look forward to seeing how you get on.- Great.
0:12:05 > 0:12:06Thank you very much. Thank you.
0:12:08 > 0:12:11There you go. A lesson in how not to buy property.
0:12:11 > 0:12:13But you've got to smile,
0:12:13 > 0:12:17and I think in this case Pamela has got away with it.
0:12:17 > 0:12:21Work to be done - how's she going to get on? What will it turn out like?
0:12:21 > 0:12:23You can find out later in the show!
0:12:26 > 0:12:32In 1816 Lewisham was described as a rural village on the banks
0:12:32 > 0:12:36of the Ravensbourne that could only be reached by a long coach ride.
0:12:36 > 0:12:40Well, it's certainly moved on in the last 195 years, and I definitely
0:12:40 > 0:12:42didn't arrive in a horse-drawn carriage,
0:12:42 > 0:12:45although that would have been quite nice
0:12:45 > 0:12:47and I would have made a grand entrance today.
0:12:47 > 0:12:50But no, I've travelled this morning by train.
0:12:50 > 0:12:56Now, the nearest station is Hither Green, and it's just 10 minutes from London Bridge. Perfect!
0:12:58 > 0:13:03# And I smile as I sit because I've found my perfect fit
0:13:03 > 0:13:05# And it's you. #
0:13:05 > 0:13:10So an ideal location for commuting, but will the property that went under the hammer be just as perfect?
0:13:10 > 0:13:14I'm here to see a terraced property with four bedrooms.
0:13:14 > 0:13:17The guide was set at £240,000.
0:13:17 > 0:13:20That sounds great when you consider the last property
0:13:20 > 0:13:25that sold on this road went for £408,000!
0:13:25 > 0:13:29Here's the property in all its... glory? Hm. Not keen on the windows.
0:13:29 > 0:13:33It might not look all that pretty from outside, but a peek next door, look,
0:13:33 > 0:13:36shows you what it could look like.
0:13:36 > 0:13:39I'm excited - I'm going to have a look around!
0:13:41 > 0:13:45One thing this house doesn't lack is space.
0:13:45 > 0:13:48It's got wonderful proportions and it feels very solid.
0:13:48 > 0:13:50Bit disappointing with the storage heaters.
0:13:50 > 0:13:52They're still efficient,
0:13:52 > 0:13:54but gas central heating would be much better.
0:13:54 > 0:13:57Got a really nice-sized hallway here.
0:13:57 > 0:13:59A little doorway to the lounge.
0:13:59 > 0:14:02Another doorway to a sort of second reception room.
0:14:02 > 0:14:05Now, it's a weird one, this. You've got a huge space.
0:14:05 > 0:14:09There would have been a wall originally here so you'd got two separate reception rooms.
0:14:09 > 0:14:13This, as it stands, would be too small with the wall up,
0:14:13 > 0:14:15and this here, well it's a little bit redundant
0:14:15 > 0:14:18because the kitchen's way back there,
0:14:18 > 0:14:21I think I'd be inclined to maybe put a wall or something along here.
0:14:21 > 0:14:23Have a little room here.
0:14:23 > 0:14:26Luckily it's got a window, so you could call this an office.
0:14:26 > 0:14:29You could move the door along and have a really nice-sized lounge.
0:14:29 > 0:14:31You've got a bay window.
0:14:31 > 0:14:34I'd like to see the original windows be reinstated here
0:14:34 > 0:14:37because then I think the house would have the kerb appeal it deserves.
0:14:37 > 0:14:40A nice fireplace as well wouldn't go amiss -
0:14:40 > 0:14:44something in keeping with the period of the property.
0:14:44 > 0:14:47But once you've stripped it of all this old-fashioned wallpaper
0:14:47 > 0:14:52and swirly carpet, it's got the bones to be a really good property.
0:14:53 > 0:14:55But...
0:14:58 > 0:15:01..continuing further back into the house, down a couple of steps,
0:15:01 > 0:15:07is the dining room with a bay window opening onto the side return.
0:15:07 > 0:15:12Not exactly the sort of view that would make dining here a pleasant experience.
0:15:12 > 0:15:15It's funny how interior layout tastes change.
0:15:15 > 0:15:19The kitchen in this house, that was guided at £240,000,
0:15:19 > 0:15:21is almost hidden away.
0:15:21 > 0:15:24A sad little room that no-one seems to love.
0:15:24 > 0:15:30Nowadays, buyers do look for kitchen space and usually want it as an integral part of the dining room,
0:15:30 > 0:15:33so I'd have this wall down straight away.
0:15:33 > 0:15:36I'm beginning to see real potential here.
0:15:36 > 0:15:39You know, the more I wander around this house, the more I like it.
0:15:39 > 0:15:41Look at this character!
0:15:41 > 0:15:45It could be sensational, once somebody's put their stamp on it!
0:15:45 > 0:15:48Upstairs, there are four bedrooms - one at the back there.
0:15:48 > 0:15:50You've got a fair-sized bedroom there.
0:15:50 > 0:15:53And this is where it gets really disappointing.
0:15:53 > 0:15:58Now you'd like think this would be the master suite
0:15:58 > 0:16:01at the front of the house with the beautiful bay window, but look at the size! It's tiny!
0:16:01 > 0:16:03Partition wall!
0:16:03 > 0:16:07Well, if you think this is tiny, the room next door is even smaller!
0:16:07 > 0:16:09You couldn't even get a single bed in there.
0:16:09 > 0:16:14So my plan would be to smash this down, open this space up,
0:16:14 > 0:16:17and have one really big bedroom at the front of the property.
0:16:17 > 0:16:22Obviously, this was a three-bedroom house originally.
0:16:22 > 0:16:27The two back bedrooms are a good size, plus there's a bathroom and separate loo up here.
0:16:29 > 0:16:34It looks as though there's potential to develop the loft - maybe that's where the fourth bedroom should go.
0:16:34 > 0:16:38And then, there's the garden.
0:16:38 > 0:16:43Now this garden is not any old garden.
0:16:43 > 0:16:45It doesn't have any grass.
0:16:45 > 0:16:47But you may think it looks like it has grass,
0:16:47 > 0:16:49but it's actually Astroturf!
0:16:49 > 0:16:53Great if you're thinking of putting up swings and slides
0:16:53 > 0:16:57and your kids love to play football outside all day,
0:16:57 > 0:17:02but it's not really that attractive and it's quite scratchy underfoot
0:17:02 > 0:17:06if you don't have any shoes on, and it's noisy!
0:17:06 > 0:17:08I would be tempted to get this up and lay down a proper lawn,
0:17:08 > 0:17:12or maybe even put some decking in this area here.
0:17:12 > 0:17:14Now, people often overlook the garden space when renovating -
0:17:14 > 0:17:18it can be the last job, and it shouldn't be.
0:17:18 > 0:17:21A garden can be just as important as the house
0:17:21 > 0:17:24when it comes to securing a buyer or a tenant.
0:17:24 > 0:17:27This could be the deal-maker.
0:17:27 > 0:17:31But leave things as they are and it could become a deal-breaker.
0:17:31 > 0:17:36# My only prayer will be That some day you'll care for me
0:17:36 > 0:17:44# But it's only make believe. #
0:17:46 > 0:17:49But what did the local estate agent make of this property
0:17:49 > 0:17:52that went to auction
0:17:52 > 0:17:53guided at £240,000?
0:17:53 > 0:17:57We invited one along to advise on possible layout changes.
0:17:57 > 0:18:02Downstairs I'd keep the reception as a through-reception.
0:18:02 > 0:18:04However I would knock the wall down between the kitchen
0:18:04 > 0:18:09and the third reception to create a big kitchen/breakfast room.
0:18:09 > 0:18:16And would it be worth extending the property up into the loft? Is it worth doing?
0:18:16 > 0:18:18I think it is a very good idea
0:18:18 > 0:18:21because there is a huge demand for four-bedroom properties.
0:18:21 > 0:18:23You can also get an en-suite up there as well,
0:18:23 > 0:18:27so making it a four-bedroom, two-bathroom property.
0:18:27 > 0:18:32And what about the rental income? How much could the house generate with the three original bedrooms
0:18:32 > 0:18:36and with the fourth bedroom in the loft?
0:18:36 > 0:18:38As a three-bedroomed house,
0:18:38 > 0:18:43I would recommend that you market the property for rentals at £1,400 per calendar month.
0:18:43 > 0:18:45And as a four-bedroomed house,
0:18:45 > 0:18:49I would recommend that you market the property for £1,700 per calendar month.
0:18:49 > 0:18:51After a full refurbishment,
0:18:51 > 0:18:54how much could the house be worth in its current configuration,
0:18:54 > 0:18:59and what impact would adding a fourth bedroom up in the loft have?
0:18:59 > 0:19:03I would recommend that you market the property at £399,950,
0:19:03 > 0:19:06to achieve £385,000 and upwards.
0:19:06 > 0:19:09If you turned the property into a four-bedroom house,
0:19:09 > 0:19:13I would recommend that you market the property at £450,000,
0:19:13 > 0:19:17to achieve £435,000 and upwards.
0:19:18 > 0:19:22I think this is a great one to go for, and it's nice to think
0:19:22 > 0:19:27that even in this sticky economic climate, well, there could be a healthy profit margin
0:19:27 > 0:19:30if somebody sticks to a strict budget.
0:19:30 > 0:19:32Let's find out who wanted this opportunity
0:19:32 > 0:19:34when it went under the hammer.
0:19:34 > 0:19:39Right. Lot 29. Attractive four-bed mid-terraced house.
0:19:39 > 0:19:43As you can see in the photograph, nice-looking building.
0:19:43 > 0:19:47I don't know, er... 250? 230?
0:19:47 > 0:19:51Thanks. 230. 235.
0:19:51 > 0:19:55235. 240, standing up.
0:19:55 > 0:20:00240. 245. 250.
0:20:00 > 0:20:04255. Come to you. 255. 260.
0:20:06 > 0:20:09265. 270. No?
0:20:09 > 0:20:15266, if it helps either of you? Yes, it does! Sorry.
0:20:15 > 0:20:19266. 267. 268.
0:20:19 > 0:20:22269. 270.
0:20:22 > 0:20:25271.
0:20:25 > 0:20:28There was a lot of interest in the property at the auction.
0:20:28 > 0:20:31We re-join the bidding a little later.
0:20:32 > 0:20:37287 sitting down. Anyone else? 287 first time.
0:20:37 > 0:20:42288. 289. 290 at the back.
0:20:42 > 0:20:44Yes? 291.
0:20:44 > 0:20:47292.
0:20:48 > 0:20:54292, if not, 291 sitting down. First time, second time, third and last time
0:20:54 > 0:20:57if you're all done, sold 291.
0:20:57 > 0:21:03Slightly hidden from view, but with his £291,000 bid,
0:21:03 > 0:21:06the victor in that Herculean bidding battle was Barry.
0:21:06 > 0:21:09Having left the world of finance behind,
0:21:09 > 0:21:11he now travels the world instead.
0:21:13 > 0:21:18# Tibet Sydney.#
0:21:18 > 0:21:21This will be his second property purchase.
0:21:21 > 0:21:26I want to find out more about his travel and property plans.
0:21:26 > 0:21:30- Barry, congratulations!- Thank you. - So did you think you were going to pick this house up
0:21:30 > 0:21:31for such a good price on auction day?
0:21:31 > 0:21:33It was quite close to my upper limit.
0:21:33 > 0:21:36But I was quite happy to get it for the £291,000.
0:21:36 > 0:21:40What was it about this property that you liked so much, that made you want to go to auction?
0:21:40 > 0:21:43I was looking for a nice-sized residential property
0:21:43 > 0:21:46that needed some modernisation and this one fitted the bill.
0:21:46 > 0:21:50It's actually quite deceptive. When you walk in, it's a lot bigger than you first imagine.
0:21:50 > 0:21:52Yes, it's got great-sized rooms
0:21:52 > 0:21:54and it's got potential to develop it even more.
0:21:54 > 0:21:56It's an ideal house to get cracking on, really.
0:21:58 > 0:22:03So Barry wants to take this Tardis-like house
0:22:03 > 0:22:05and turn it into a much plusher pad.
0:22:05 > 0:22:08But I was keen to find out what he did before he started
0:22:08 > 0:22:10developing property.
0:22:10 > 0:22:13I used to work for a local recruitment company and I gave it up,
0:22:13 > 0:22:16some time a couple of years ago, and decided to go travelling.
0:22:16 > 0:22:19And when I came back, I've always been interested in property
0:22:19 > 0:22:22but never had the time to do anything with it,
0:22:22 > 0:22:26so I decided to buy another place at auction, and did it up and sold it, and this is my second one.
0:22:26 > 0:22:29Have you got a background in property?
0:22:29 > 0:22:32- Are you familiar with the skills of the building trade? - Not at all.
0:22:32 > 0:22:35It's all sort of learning on the job, as much as anything else.
0:22:35 > 0:22:38So do you feel capable to take a project on such as this?
0:22:38 > 0:22:41I feel pretty confident, after my experience from the last one,
0:22:41 > 0:22:42I've learnt from my mistakes
0:22:42 > 0:22:46and I'm pretty confident that I can actually do something decent with it.
0:22:46 > 0:22:49- Are you going to work with what you've got here?- Yes.
0:22:49 > 0:22:52I'm going to knock down some walls, extend a kitchen/diner, and probably
0:22:52 > 0:22:56knock it back to a three-bedroom. The original must have been a three-bedroom.
0:22:56 > 0:23:00- What's your budget?- Hoping to get it done within £20,000.
0:23:00 > 0:23:01Do you think you could do that?
0:23:01 > 0:23:05It'll be tight, but I think so, yes, if I do a fair bit of work myself.
0:23:06 > 0:23:11Barry will be doing as much as he possibly can, including decorating and laying the floor.
0:23:11 > 0:23:15And he will actually be letting the grass grow under his feet
0:23:15 > 0:23:20when he hauls up that artificial grass and replaces it with a lawn.
0:23:20 > 0:23:24But he will have to get qualified electricians and gas fitters if they're required.
0:23:24 > 0:23:27That could eat into his ambitious budget,
0:23:27 > 0:23:30and he's rather optimistic with a mere three-month timescale too!
0:23:32 > 0:23:37And I'm sure you're looking forward to selling it, getting your money and going off travelling!
0:23:37 > 0:23:41- So where to next?- I'd like to go to India and south-east Asia. I've spent a bit of time in Thailand,
0:23:41 > 0:23:44but I've never been to India. I'm going to go to Vietnam, Cambodia,
0:23:44 > 0:23:47and travel around there for a couple of months.
0:23:47 > 0:23:52- What is the grand plan for you? Do a house up, off you go - is that how you're doing it?- Exactly, yes.
0:23:52 > 0:23:55Do a house up and hopefully with some of the profits go travelling,
0:23:55 > 0:23:59come back, buy another one, do it up, and do that for as long as I can, really.
0:23:59 > 0:24:04Barry, good luck with this. I hope you stick to that £20,000 budget, because if you do,
0:24:04 > 0:24:07- I think you've got a lot of profit coming your way. Well done! - Thank you, Lucy.
0:24:07 > 0:24:13I hope jet-setter Barry can stay in the UK long enough to complete this project!
0:24:13 > 0:24:15Joking aside - what a great way to live.
0:24:15 > 0:24:21Develop a property, sell it on, go off exploring the world. Jealous!
0:24:21 > 0:24:23But there is some serious work ahead of him
0:24:23 > 0:24:25if he stands to make the profit he's expecting.
0:24:25 > 0:24:31Will he do it in three months for £20,000? I can't wait to find out.
0:24:31 > 0:24:32Keep watching,
0:24:32 > 0:24:36and you can find out if he makes a success of this later in the show.
0:24:37 > 0:24:40Coming up - I'm falling for a property in mid-Glamorgan,
0:24:40 > 0:24:42or is it the other way round?
0:24:42 > 0:24:46Literally, there is a danger of this whole property collapsing!
0:24:47 > 0:24:50In Lewisham, south-east London,
0:24:50 > 0:24:54did Barry manage to give this place a total transformation?
0:24:54 > 0:24:58I think it would be difficult to recognise it from how it was before.
0:24:58 > 0:25:01But first, is Pamela done with the renovation
0:25:01 > 0:25:03and ready for her next decision?
0:25:03 > 0:25:07I'll either have a "to let" sign up or I'll have a "for sale" sign up.
0:25:12 > 0:25:15Back now to Tyne and Wear and under the gaze of the Angel of the North,
0:25:15 > 0:25:20this property sold at auction for £48,000.
0:25:21 > 0:25:26Its new owner, Pamela, hadn't even viewed it or read the legal papers.
0:25:26 > 0:25:29Not my recommended tactics at all for buying at auction.
0:25:32 > 0:25:35- Will you look at the property before you buy them next time?- It depends.
0:25:35 > 0:25:37Depends.
0:25:37 > 0:25:40- You got away with it this time but it could have been horrendous.- Yes.
0:25:40 > 0:25:44- I probably might view it. - Probably might?!
0:25:44 > 0:25:47It depends on where I'm at and what I'm thinking of at the time.
0:25:47 > 0:25:49It depends on how impulse I am.
0:25:49 > 0:25:52Do not try this at home!
0:25:52 > 0:25:56Well, in fact, Pamela's impulse buy turned out OK for her this time.
0:25:56 > 0:26:01The house was structurally sound and just needed beautifying
0:26:01 > 0:26:05and given that she owns a hairdresser's and a spa, who better to make this place pretty?
0:26:05 > 0:26:11# Just a little bit of green
0:26:13 > 0:26:18# Clouds my eyes to what I see
0:26:21 > 0:26:28# Just a little bit of green when I see you. #
0:26:28 > 0:26:33Since you were last here I've taken it back to the bare walls everywhere.
0:26:33 > 0:26:37There's been new walls all in the large bedroom, all over.
0:26:37 > 0:26:40There's been two new walls in the little bedroom.
0:26:40 > 0:26:43We took the carpets up - replaced the carpets everywhere.
0:26:43 > 0:26:46The biggest task was definitely the kitchen and the lounge,
0:26:46 > 0:26:51because as you can probably see from the last time, the lounge was a right mess.
0:26:51 > 0:26:54Took out the fireplace, took out the marble casting
0:26:54 > 0:26:59that was in the hearth, replaced it with a very contemporary fire.
0:26:59 > 0:27:03It's not only the lounge looking bang-up-to-date now.
0:27:03 > 0:27:06Just check out the new kitchen - making you green with envy?
0:27:06 > 0:27:10# Just a little bit of green. #
0:27:11 > 0:27:13I wanted to keep all of this wall clear,
0:27:13 > 0:27:17because I think that visually gives you a lot more space.
0:27:17 > 0:27:21The cooker that we put in - we changed it from what it was.
0:27:21 > 0:27:29We put an extractor fan in. It's an electric oven, gas top. We went for a round sink unit
0:27:29 > 0:27:31to give it more space and keep it contemporary as well.
0:27:31 > 0:27:38It's modern, it's stylish - it's a quality job, as is the work done in the downstairs loo.
0:27:38 > 0:27:43I think Pamela has made a sensible decision in financial terms here.
0:27:43 > 0:27:46It would have added considerable expense
0:27:46 > 0:27:47to move the entire bathroom upstairs,
0:27:47 > 0:27:51although maybe a loo up there would have been a welcome addition.
0:27:51 > 0:27:56Buying this house blind meant Pamela had no idea how little or how much work
0:27:56 > 0:27:59she had to do to the property
0:27:59 > 0:28:03until she walked through the door - a scary prospect for any developer.
0:28:03 > 0:28:05It was in a state,
0:28:05 > 0:28:09so I was prepared to take it back to make it look lovely.
0:28:09 > 0:28:13So nothing kind of bothered me, it was just getting the right people in
0:28:13 > 0:28:16to do the right jobs in the timescale that I wanted to have it finished by.
0:28:16 > 0:28:21Talking of timescale, her aim was nine weeks for all the work.
0:28:21 > 0:28:24She's pretty much been spot-on with that, but what about the budget?
0:28:24 > 0:28:29She'd hoped to get it all done on £8,000-£10,000.
0:28:29 > 0:28:34I've gone just over the eight. I've done about 8,750, so I'm quite happy with that.
0:28:34 > 0:28:36I've kept it below the ten, that was good.
0:28:36 > 0:28:41Well within budget, then. But will she see a good return on her outlay?
0:28:41 > 0:28:44Let's ask two local property experts for their opinions
0:28:44 > 0:28:47on the finished result.
0:28:47 > 0:28:48I absolutely can't believe it.
0:28:48 > 0:28:51The changes are phenomenal in this house. It's unbelievable.
0:28:51 > 0:28:55Quite a stylish house. Very nicely done.
0:28:55 > 0:28:57Yes. Should appeal to first-time buyers, I think.
0:28:57 > 0:29:00I think the colours work really, really well in this house.
0:29:00 > 0:29:04It does bring it together a little bit more. It's lovely.
0:29:04 > 0:29:06The kitchen and the bathroom are the two key things.
0:29:06 > 0:29:11And they've done a nice modern finish with both the kitchen and the bathroom
0:29:11 > 0:29:13and easy maintenance, so good.
0:29:13 > 0:29:16The only thing I could say is that the downstairs bathroom
0:29:16 > 0:29:18is always a bit of an issue with people.
0:29:18 > 0:29:21If there'd been a way to put the bathroom upstairs it would have been superb,
0:29:21 > 0:29:26but obviously she's done what she could with what she has, and it's worked really, really well.
0:29:26 > 0:29:30Keeping the downstairs bathroom isn't ideal, but I think with
0:29:30 > 0:29:33the layout of the house, it's going to be very difficult to change that.
0:29:33 > 0:29:38Pamela hasn't decided yet if she wants to let or sell the property.
0:29:38 > 0:29:42Will some valuations help her make up her mind?
0:29:42 > 0:29:44I think this property would rent very easily,
0:29:44 > 0:29:50and at this standard, I would expect to achieve approximately £400,
0:29:50 > 0:29:52perhaps £425 per calendar month.
0:29:52 > 0:29:54In the rental market at the moment,
0:29:54 > 0:29:57I would think she'd be looking at around £450 per calendar month.
0:29:57 > 0:30:01The rental figures - I would be quite happy with £450 plus.
0:30:01 > 0:30:05I don't really want to be renting it out at less than the 450.
0:30:05 > 0:30:08I think it is worth that and I know of other people in this street
0:30:08 > 0:30:12who pay 450 and it's not to the standard of what this house is.
0:30:12 > 0:30:16Including the work, she's spent just under £57,000 here.
0:30:16 > 0:30:23So that £450 rental figure would give her a 9.5 per cent yield.
0:30:23 > 0:30:27Pretty impressive. How much could she hope for if she resold?
0:30:29 > 0:30:31I would value this property at £65,000.
0:30:31 > 0:30:33I think this would sell very, very well.
0:30:33 > 0:30:36First-time buyers would be very interested,
0:30:36 > 0:30:41particularly because of the finish and I would expect to achieve about £70,000.
0:30:41 > 0:30:44Very happy with the £70,000.
0:30:44 > 0:30:48If I could get £70,000 I would probably go on the sale side of things.
0:30:48 > 0:30:53I still haven't come to the decision whether I want to rent or sell yet.
0:30:53 > 0:30:56I'll take a bit of consideration over that over the next day or so,
0:30:56 > 0:31:02then I'll make a decision ad I'll either have a "to let" sign up or I'll have a "for sale" sign up.
0:31:02 > 0:31:04Pamela isn't being quite as impulsive
0:31:04 > 0:31:07when it comes to this decision.
0:31:07 > 0:31:09But since filming, she's opted for rental
0:31:09 > 0:31:13and is getting £450 a calendar month.
0:31:18 > 0:31:22I'm visiting a village in the Rhondda Valley, south Wales,
0:31:22 > 0:31:24an area once known for its coal mining.
0:31:24 > 0:31:29# I'm a coal-mining man I am who I am
0:31:29 > 0:31:33# And I wouldn't have it any other way. #
0:31:33 > 0:31:37This is Tylorstown, named after Alfred Tylor, who had a mine
0:31:37 > 0:31:40here in the 19th century.
0:31:40 > 0:31:43So what am I here to see? Well, interesting one, this.
0:31:43 > 0:31:46It's a former shop which has planning permission
0:31:46 > 0:31:49for conversion into two flats. This is it.
0:31:49 > 0:31:53Now, the auction catalogue does say that some work has commenced.
0:31:53 > 0:31:55That's not the most interesting thing.
0:31:55 > 0:31:58The most interesting thing is the guide price,
0:31:58 > 0:32:01which was 15 - that's one five - £15,000!
0:32:02 > 0:32:04So upstairs to one of the flats,
0:32:04 > 0:32:08and the larger of the two flats is through here.
0:32:08 > 0:32:13On two levels - this level here, and then downstairs to whatever's down there.
0:32:13 > 0:32:17This has been converted into some kind of open-plan living area.
0:32:17 > 0:32:20You've got the kitchen at this end.
0:32:20 > 0:32:23Well, sort of! Oh, my goodness, what a mess!
0:32:23 > 0:32:26But yes, it's obviously a partly-completed project.
0:32:26 > 0:32:30Now, you've got this area at the back here which again
0:32:30 > 0:32:32has had a bit of plastering on the walls
0:32:32 > 0:32:36but I'm a bit concerned about the amount of damp which is still coming through up here
0:32:36 > 0:32:39and in fact, that wall there is absolutely sopping wet.
0:32:39 > 0:32:42Now, if somebody started to work on this,
0:32:42 > 0:32:45I would not have expected that to be in that condition
0:32:45 > 0:32:48if the job had been done to a reasonable standard,
0:32:48 > 0:32:51and that's the problem with taking on a half-completed
0:32:51 > 0:32:54or partly-completed restoration project.
0:32:54 > 0:32:57You never quite know how good the work that's been done
0:32:57 > 0:32:58so far has been done,
0:32:58 > 0:33:04and in some cases it's almost better to rip it all out and start again.
0:33:04 > 0:33:08Unsurprisingly, the lower ground floor of this bottom flat
0:33:08 > 0:33:14is also a work in progress with three rooms and nothing in them.
0:33:14 > 0:33:18Which at least leaves your options on how to arrange it open!
0:33:18 > 0:33:24# Baby I'm in heaven So I'd like to start it over again. #
0:33:24 > 0:33:29Anyway, onwards and upwards to the smaller one-bedroom flat on the top floor.
0:33:33 > 0:33:36So up here, and a little rear area there
0:33:36 > 0:33:39which I think is going to be the bathroom.
0:33:39 > 0:33:42But looking up, there's a lintel going across there,
0:33:42 > 0:33:46and it just does not look like it's been done correctly.
0:33:48 > 0:33:50Not happy with that at all.
0:33:50 > 0:33:52But you've got your bedroom there
0:33:52 > 0:33:56and then through to your kitchen/living room.
0:33:56 > 0:33:58As I said, this is a much smaller flat.
0:33:58 > 0:34:00Again, half finished, half done.
0:34:00 > 0:34:02Again, don't know quite to what standard.
0:34:02 > 0:34:06But the big question is, what are you going to do with this place?
0:34:06 > 0:34:08Are you going to keep it as two flats?
0:34:08 > 0:34:11Or are you going to think about converting it back into one property?
0:34:11 > 0:34:14That all comes down to economics - how much it's going to cost
0:34:14 > 0:34:18to do either of those options and what that property,
0:34:18 > 0:34:21either a flat or a house, would be worth after you'd done it.
0:34:21 > 0:34:24It strikes me that this is one of those ones where you're going
0:34:24 > 0:34:27to have to be really, really, really careful with the budget,
0:34:27 > 0:34:29because what you don't to do is overspend
0:34:29 > 0:34:32and not be able to recoup your money.
0:34:32 > 0:34:35With every property purchase, finances are of course
0:34:35 > 0:34:41a major factor to consider and this property proves it in spades -
0:34:41 > 0:34:46something you'll need when it comes to tackling what's out back!
0:34:46 > 0:34:50Well, here at the rear of the property it does not get any better.
0:34:50 > 0:34:52In fact, in some ways it gets even worse.
0:34:52 > 0:34:56But it just goes to show you should always view both sides of a property.
0:34:56 > 0:34:59It might sound like an obvious thing to say, but it isn't.
0:34:59 > 0:35:01There's a sort of alleyway to come through
0:35:01 > 0:35:03and then this rear-access road to get to the back,
0:35:03 > 0:35:06and what happened is that when they applied for planning permission,
0:35:06 > 0:35:09one of the stipulations was that there had to be parking for two cars,
0:35:09 > 0:35:14which is why this has actually been dug out.
0:35:14 > 0:35:17The problem is, you would have expected some kind of retaining wall to stop
0:35:17 > 0:35:20all that soil and all the foundations of the property
0:35:20 > 0:35:21itself slipping this way.
0:35:21 > 0:35:25Well, that retaining wall hasn't been put in, so literally there is a danger
0:35:25 > 0:35:30of this whole property collapsing towards the rear here.
0:35:30 > 0:35:33But when you are at the back, you stare up and you can see all sorts of problems.
0:35:33 > 0:35:36I mean, exposed brickwork - that's where the damp's coming in, there.
0:35:36 > 0:35:40This extension doesn't look like it's been put on properly.
0:35:40 > 0:35:42It's got some kind of a wonky bit at the top.
0:35:42 > 0:35:47All in all, it's really bad!
0:35:49 > 0:35:53# I'm bad, I'm bad, you know it You know
0:35:53 > 0:35:55# And the whole world has to answer right now
0:35:55 > 0:35:58# Just to tell you once again Who's bad? #
0:35:59 > 0:36:03This place might appear to go from bad to worse, but with that
0:36:03 > 0:36:09low guide price of just £15,000, could it really be a bad buy?
0:36:09 > 0:36:10We asked a local estate agent
0:36:10 > 0:36:13to take a look and give us his thoughts.
0:36:13 > 0:36:15This is going to be very challenging.
0:36:15 > 0:36:18I would suspect several previous owners have attempted to
0:36:18 > 0:36:20renovate this building and failed.
0:36:20 > 0:36:25But hopefully, whoever bought this will make it a success this time
0:36:25 > 0:36:28and the potential profit will make it worthwhile.
0:36:28 > 0:36:31Let's begin with rental.
0:36:31 > 0:36:33One-bedroom fully-modernised flats in this area
0:36:33 > 0:36:41are achieving in the region of £250 per calendar month to £275 per calendar month.
0:36:41 > 0:36:45A two-bedroom flat probably wouldn't achieve much more.
0:36:45 > 0:36:47You'd still be looking in the £275 per calendar month.
0:36:47 > 0:36:51But that would have to be finished to a very high standard.
0:36:51 > 0:36:55What if it was converted from two flats into one house?
0:36:55 > 0:36:58A three-bedroom house would achieve in the region of £375 per calendar month.
0:36:58 > 0:37:02Perhaps selling would be the more attractive option.
0:37:02 > 0:37:06A one-bedroom flat, I would expect to achieve in the region of £20,000
0:37:06 > 0:37:10and a two-bedroom flat in the region of £25,000.
0:37:10 > 0:37:14Three-bedroom house could be in the region of £35,000.
0:37:14 > 0:37:16# And the whole world has to answer right now
0:37:16 > 0:37:19# Just to tell you once again Who's bad? #
0:37:19 > 0:37:21Well, there's no denying that guide price is incredibly low,
0:37:21 > 0:37:25but does it make this property good value for money?
0:37:25 > 0:37:26Well, not necessarily.
0:37:26 > 0:37:30It all depends how much it's going to cost to sort it out
0:37:30 > 0:37:35and how much it's going to be worth as flats or one house.
0:37:35 > 0:37:37Let's see who bought it when it went under the hammer.
0:37:39 > 0:37:42Who's going to get me started at £10,000?
0:37:42 > 0:37:45This is pocket money to most of you property people in here,
0:37:45 > 0:37:47isn't it, surely?
0:37:47 > 0:37:50OK, who's going to start me at 8? Thank you! Here's one.
0:37:50 > 0:37:56Thank you - £8,000 I have. 8. Who's going to give me half? Sir? 9?
0:37:56 > 0:37:58Thank you. 9,000 I have.
0:37:58 > 0:38:029 and a half. 10 I'm looking for. Thank you, sir. 10,000 I have.
0:38:02 > 0:38:06Thank you, 10 and a half. There we are. 10,500 is bid. Any advance?
0:38:06 > 0:38:08Sir, are you going to come back in? No?
0:38:08 > 0:38:12OK, I'm going to sell it to you, sir, at £10,500.
0:38:12 > 0:38:19That winning bid of just £10,500 was made by criminal lawyer Steven.
0:38:19 > 0:38:23He purchased it with Mark who runs a building company.
0:38:23 > 0:38:27Friends for years, this was their first property project together.
0:38:27 > 0:38:30# Welcome to the cheap seats Welcome to the cheap seats
0:38:30 > 0:38:32# Welcome to the cheap seats. #
0:38:35 > 0:38:39Well, the house may have been cheap, but are these two cheerful!
0:38:42 > 0:38:47- Mark, Steve. Great to meet you both. - Hi there.- Congratulations.
0:38:47 > 0:38:50- Or commiserations!- Well... I don't know.
0:38:50 > 0:38:55£10,500 in 2012 for a house - it's still a bit, whoa! Isn't it?
0:38:55 > 0:38:56Definitely!
0:38:56 > 0:39:01- Is that what attracted you to it? - Yes, definitely.- Yes.
0:39:01 > 0:39:03I think we were sat at the auction, and we'd gone there
0:39:03 > 0:39:08to purchase something else, and when the auctioneer said
0:39:08 > 0:39:12"£8,000, we'll start at", we thought well, we'll give it a go.
0:39:12 > 0:39:16- What did you go for originally? - We went for a property which was roughly £250,000.- What?!
0:39:16 > 0:39:23- We budgeted for about 250, 255 for that.- 255,000?- Yes.
0:39:23 > 0:39:26- And you bought something for 10,500? - Bought for 10,500Q!
0:39:26 > 0:39:30The chap who was bidding, you could see that he really wanted it,
0:39:30 > 0:39:32so, you know, we ended up with this!
0:39:33 > 0:39:36That's just brilliant!
0:39:36 > 0:39:40This duo are certainly upbeat about their unplanned purchase!
0:39:40 > 0:39:44But the downside of that is that they haven't viewed either
0:39:44 > 0:39:48the property or even the all-important legal pack prior to the auction.
0:39:48 > 0:39:50And as a general Homes Under The Hammer rule,
0:39:50 > 0:39:53that's a definite no-no.
0:39:56 > 0:39:59As a lawyer, you'd think I would look at the legal pack before
0:39:59 > 0:40:03I went to auction, which I did in respect of the other property,
0:40:03 > 0:40:05so I knew everything about the other property.
0:40:05 > 0:40:08We hadn't even looked at the legal pack on this. We just bought it,
0:40:08 > 0:40:11which as a lawyer, is not the thing to do, really.
0:40:11 > 0:40:13It's not the thing to do if you're not a lawyer,
0:40:13 > 0:40:17but as a lawyer, it was criminal!
0:40:17 > 0:40:19A least you can see the funny side of it!
0:40:19 > 0:40:23Well, or even the irony of it! It could turn out very badly!
0:40:23 > 0:40:25But you know, we took the gamble and here we are.
0:40:25 > 0:40:28We pulled up outside for the first time,
0:40:28 > 0:40:30and we saw the front and were pleasantly pleased, weren't we?
0:40:30 > 0:40:32Yes.
0:40:32 > 0:40:35We went around the back and I wanted to weep!
0:40:37 > 0:40:41- What did you expect for £10,500? - We didn't expect much.
0:40:41 > 0:40:44- When we actually came inside... - Which was last Saturday...
0:40:44 > 0:40:47..we were pleasantly surprised with the inside.
0:40:47 > 0:40:50I think it was the outside that is quite daunting.
0:40:50 > 0:40:52OK, so here you are. You've got your house.
0:40:52 > 0:40:54What are you going to do with it?
0:40:54 > 0:40:56I think it would be better off turning it
0:40:56 > 0:40:58back into a three-bedroom.
0:40:58 > 0:41:01So I think I'd have the downstairs as a living room,
0:41:01 > 0:41:06this as a kitchen/diner and the bedrooms upstairs on the third floor. That's my plan.
0:41:06 > 0:41:08They both live in Cardiff
0:41:08 > 0:41:12and have no interest in being long-distance landlords.
0:41:12 > 0:41:17So, rather than letting, they plan to sell it once it's finished.
0:41:17 > 0:41:20Ditching the idea of continuing to convert this into two flats,
0:41:20 > 0:41:24and making it into one house will keep costs lower,
0:41:24 > 0:41:28as they will have to spend less on fixtures and fittings.
0:41:28 > 0:41:30How much do you think it's going to cost to get it sorted?
0:41:30 > 0:41:34- I think 20,000 won't be far off. - What's the timescale?
0:41:34 > 0:41:38- From start to finish, eight weeks. - Oh, wow! So a team of how many people doing that?
0:41:38 > 0:41:39It'll be about eight.
0:41:39 > 0:41:44- It's going to have to be fairly labour intensive to get it done in that time.- About eight people.
0:41:44 > 0:41:48Do you regret what's happened here, or are you just sort of taking it...?
0:41:48 > 0:41:52I don't think so, I mean, Mark's confident, so if he's confident...
0:41:52 > 0:41:54- There's a lot of weight on your shoulders!- There is.
0:41:54 > 0:41:59He's putting more and more weight on my shoulders as we go along.
0:41:59 > 0:42:01Great. Well, it's a really funny story.
0:42:01 > 0:42:04Thank you for entering into the spirit of it. Good luck!
0:42:04 > 0:42:08- Thanks very much - we'll need it! - I look forward to seeing how you get on.- OK. Thanks very much.
0:42:10 > 0:42:14Well, Mark and Steve breaking all the rules,
0:42:14 > 0:42:18and Steve, a lawyer, not reading the legal pack! Can you believe it?
0:42:18 > 0:42:23Now on the face of it, £10,500 - can it possibly go wrong?
0:42:23 > 0:42:29Well, in this instance... I think it might!
0:42:29 > 0:42:33The property is going to need a heck of a lot of work and I don't
0:42:33 > 0:42:36think the local market necessarily supports the amount of effort
0:42:36 > 0:42:38and money it's going to take to sort it out,
0:42:38 > 0:42:41especially basically just doing it from a resale point of view.
0:42:42 > 0:42:45So...
0:42:45 > 0:42:49..you'll have to join them later in the show to find out what happens!
0:42:52 > 0:42:56Making the correct decisions when it comes to design
0:42:56 > 0:42:59isn't just about say, living with the wrong paint colour for a few years.
0:42:59 > 0:43:01It can seriously affect your profits.
0:43:01 > 0:43:05Yes, turning your ideas into a reality can be a thrill,
0:43:05 > 0:43:07but have our buyers got it right?
0:43:07 > 0:43:08Let's see what they're up to.
0:43:11 > 0:43:13London's calling, and we're back in Lewisham
0:43:13 > 0:43:19where Barry had bought this four-bed terraced house at auction for £291,000.
0:43:20 > 0:43:24Now there's a man who has the work-life balance sorted.
0:43:25 > 0:43:28What is the grand plan for you? Do a house up, off you go?
0:43:28 > 0:43:31- Is that how you're doing it? - That's exactly it.
0:43:31 > 0:43:33Do a house up, and hopefully with some of the profits,
0:43:33 > 0:43:38go travelling, come back, buy another one, do it up. Do that for as long as I can, really.
0:43:38 > 0:43:42He wanted to be travelling again ASAP
0:43:42 > 0:43:45so aimed to get the work completed in under three months.
0:43:45 > 0:43:47We returned after eight months.
0:43:47 > 0:43:51The property's almost finished, so how does it look now?
0:44:08 > 0:44:12Simply stunning! So much has been done here.
0:44:12 > 0:44:16Barry's put in new central heating, carpets, windows, doors -
0:44:16 > 0:44:20and decorated the whole place both inside and out!
0:44:30 > 0:44:33The supposed master bedroom upstairs
0:44:33 > 0:44:36and the fourth bedroom, which you couldn't even fit
0:44:36 > 0:44:40a single bed into, have been knocked together to make a master suite.
0:44:42 > 0:44:46And that wasn't the only place that Barry used a sledgehammer!
0:44:47 > 0:44:49The kitchen was probably the biggest challenge.
0:44:49 > 0:44:52Initially there was a wall here separating the kitchen
0:44:52 > 0:44:55from the dining room, which made it a very small kitchen indeed.
0:44:55 > 0:44:59So we decided to knock that down and we decided to take out the old recess
0:44:59 > 0:45:01and put a range cooker in there.
0:45:01 > 0:45:04It's been transformed, really, compared to before.
0:45:04 > 0:45:06It's got new furniture, new units, a range cooker,
0:45:06 > 0:45:09the floor's been redone, the walls have all been skimmed
0:45:09 > 0:45:11and decorated, the windows have been put in,
0:45:11 > 0:45:14so I think it would be difficult to recognise it from how it was before.
0:45:14 > 0:45:19The kitchen alone cost between £8,000 and £9,000.
0:45:19 > 0:45:22Barry had set himself a total budget of £20,000,
0:45:22 > 0:45:26which was ambitious enough, but to get the place looking like this?
0:45:26 > 0:45:30Once all the bills are in I reckon it'll be very close to 30 grand - a couple of pounds either side,
0:45:30 > 0:45:35so 10,000 over - which is 50 per cent over, which is quite a lot.
0:45:35 > 0:45:37But we thought it was worth spending the extra money
0:45:37 > 0:45:40on getting a nice finish rather than trying to cut corners.
0:45:40 > 0:45:43I think he's absolutely right.
0:45:43 > 0:45:48Whenever you're renovating a property, of course you want to keep a beady eye on the numbers,
0:45:48 > 0:45:51but often you get what you pay for, and spending a little more up front
0:45:51 > 0:45:55can mean you reap financial rewards further down the line.
0:45:58 > 0:46:01Although he originally wanted to get cracking on the work pronto,
0:46:01 > 0:46:06in this instance Barry put his other pastime first.
0:46:06 > 0:46:09My partner decided to take some time out - her contract came
0:46:09 > 0:46:12to a natural conclusion, so it was more ideal for us to leave
0:46:12 > 0:46:15and travel then, then come back and sort ourselves out when we returned.
0:46:15 > 0:46:18It's benefited me being away because the market's gone up
0:46:18 > 0:46:21in the last two or three months just in this area.
0:46:21 > 0:46:24It's very good in terms of transport links, it's got great schools,
0:46:24 > 0:46:26a nice park and it's a nice residential area
0:46:26 > 0:46:29on the borders of Blackheath and Hither Green and Lewisham.
0:46:29 > 0:46:31It's an ideal place to be.
0:46:33 > 0:46:37It may have started later than planned, but the project was done
0:46:37 > 0:46:39pretty much within his timescale once under way.
0:46:39 > 0:46:44And when he did return, he had no hesitation in getting stuck
0:46:44 > 0:46:48into the work, especially on the outside, where all was not as it seemed.
0:46:48 > 0:46:52If there were any surprises, it was in the garden. We knew there was Astroturf
0:46:52 > 0:46:54and there was a shed that was blocking out the window.
0:46:54 > 0:46:58I assumed that underneath the Astroturf there was earth and I could just cut it and lawn it.
0:46:58 > 0:47:02Unfortunately, there was actually a yard, so I ended up spending about
0:47:02 > 0:47:05three days with a sledgehammer breaking that up and getting it
0:47:05 > 0:47:08skipped out and getting topsoil in and putting a new lawn in.
0:47:08 > 0:47:11So instead of plastic grass, it's now got real grass!
0:47:11 > 0:47:15Keeping it real extended to the inside of the property as well.
0:47:15 > 0:47:17And it's great that Barry's maintained
0:47:17 > 0:47:20many of the property's beautiful period features.
0:47:20 > 0:47:24He did think about reinstating a wall between the two reception rooms
0:47:24 > 0:47:29but decided it was better to have a large, light space.
0:47:29 > 0:47:33Now that it's had a cosmetic overhaul, I think it looks fantastic!
0:47:37 > 0:47:39We invited two local estate agents to view the house
0:47:39 > 0:47:41and see if they agreed.
0:47:43 > 0:47:46My first impressions of the property are very good.
0:47:46 > 0:47:49The owner seems to have finished the property to a high standard.
0:47:49 > 0:47:50It's finished in neutral colours.
0:47:50 > 0:47:52The property's still got some period features
0:47:52 > 0:47:54which will appeal to its target
0:47:54 > 0:47:56marketplace and I think it will be well received on the market.
0:47:56 > 0:48:00It's a lovely Victorian property, nice and airy. Beautiful.
0:48:00 > 0:48:03I think it'll lend itself to a nice family home.
0:48:03 > 0:48:06With the £291,000 purchase price added to
0:48:06 > 0:48:13the £30,000 spent on the work Barry's grand total is £321,000.
0:48:13 > 0:48:18If he decided to let the property, what returns could he be looking at?
0:48:18 > 0:48:25If I was to rent this property, I think it would achieve round about £1,350 per month.
0:48:25 > 0:48:27If the property was to go up for rental,
0:48:27 > 0:48:31I would expect it to achieve in the region of £1,400 per calendar month.
0:48:31 > 0:48:35I haven't looked into rental, but if we don't manage to sell it, that's something we'll consider.
0:48:35 > 0:48:37So they're decent figures, yes.
0:48:37 > 0:48:40But letting isn't part of the grand plan,
0:48:40 > 0:48:43which is to sell this to fund his next trip abroad.
0:48:43 > 0:48:47So what do the estate agents estimate it could sell for?
0:48:47 > 0:48:53If the vendor was to put this property for sale, I would expect him to achieve in the region of £400,000.
0:48:53 > 0:48:55If I was to put the property up for sale,
0:48:55 > 0:48:59I think it would achieve between £400,000 and £410,000.
0:48:59 > 0:49:01Yes, I think maybe a couple of months ago
0:49:01 > 0:49:04I would have agreed with that, but the market's moved on recently
0:49:04 > 0:49:07so perhaps we'll get a bit more than that, but we'll see.
0:49:07 > 0:49:13A pre-tax profit of £79,000 - £89,000 is pretty impressive,
0:49:13 > 0:49:16but not as impressive as the sale price he did achieve.
0:49:16 > 0:49:19The very first couple who viewed the property actually bought it
0:49:19 > 0:49:23for £485,000!
0:49:23 > 0:49:28Surely making a mint £164,000 pre-tax profit will give him
0:49:28 > 0:49:32enough to travel for a while yet!
0:49:32 > 0:49:35Yes I'd like to renovate a couple of houses a year and spend the
0:49:35 > 0:49:40in-between parts travelling around and seeing the rest of the world.
0:49:40 > 0:49:43# Holiday, holiday. #
0:49:43 > 0:49:45What a life! Sounds like heaven!
0:49:51 > 0:49:54We've returned to Tylorstown, South Wales,
0:49:54 > 0:49:59where criminal lawyer Steven and builder Mark made an unplanned
0:49:59 > 0:50:03purchase of this, a two-flat property spread over three floors.
0:50:03 > 0:50:05It was miles from being finished
0:50:05 > 0:50:10but came at the astonishingly low price of £10,500.
0:50:10 > 0:50:14That was a whole lot less than they'd planned to spend on auction day.
0:50:14 > 0:50:16What did you go for originally?
0:50:16 > 0:50:19We went for a property which was roughly £250,000.
0:50:19 > 0:50:25- We budgeted for about 250, 255 for that.- £255,000?- Yes.
0:50:25 > 0:50:28- And you bought somewhere for 10,500? - Bought it for 10,500!
0:50:30 > 0:50:32That's just brilliant!
0:50:32 > 0:50:34Well, it's now three months later
0:50:34 > 0:50:38and I've just about managed to compose myself.
0:50:38 > 0:50:42And now we're back to see if they've managed to do a brilliant job here.
0:50:42 > 0:50:45Their plan was to ditch the two-flat idea,
0:50:45 > 0:50:48and make the property into a three-bedroom house in just eight weeks.
0:51:04 > 0:51:06So what have we got here?
0:51:06 > 0:51:10The lower ground floor was three dirty, empty rooms,
0:51:10 > 0:51:13but now houses a bedroom, bathroom, and a kitchen.
0:51:15 > 0:51:18With that relocated downstairs on the ground floor, there's a
0:51:18 > 0:51:24huge open-plan living area with an additional small room at the back.
0:51:25 > 0:51:28And on the top floor, which was going to be a self-contained flat,
0:51:28 > 0:51:32are two more good-sized bedrooms and a family bathroom.
0:51:36 > 0:51:39No more debris, dust or dirt,
0:51:39 > 0:51:42which had certainly been a big problem outside, to be seen.
0:51:50 > 0:51:53As you can see, we've put a decking area out the back
0:51:53 > 0:51:55and formed a car port underneath.
0:51:55 > 0:52:01I think we took away about 50 tons of earth, so it was major job.
0:52:01 > 0:52:02And on the rear of the house,
0:52:02 > 0:52:04we had to do a big retaining wall at the bottom.
0:52:04 > 0:52:08I think it'll be really good for the summer, for barbecues,
0:52:08 > 0:52:12and I think it will be a good selling point for the house.
0:52:12 > 0:52:16So the outside mess is sorted and all decked-out now.
0:52:16 > 0:52:20It's certainly a far cry from the property that was here
0:52:20 > 0:52:21just 12 weeks ago.
0:52:21 > 0:52:24And we're not the only ones who think so.
0:52:24 > 0:52:27I came for the first time when you were here previously
0:52:27 > 0:52:30and I came back Saturday for only the second time
0:52:30 > 0:52:33and I was amazed to see the difference in the property.
0:52:33 > 0:52:36I was expecting it to look different, obviously,
0:52:36 > 0:52:39but I think Mark's done an excellent job.
0:52:39 > 0:52:43I was genuinely surprised by the way that it looked.
0:52:43 > 0:52:46Well, we're agreed then. It's looking impressive.
0:52:46 > 0:52:51But was it possible to stick to their original £20,000 budget?
0:52:52 > 0:52:55I think we've gone about £10,000 over-budget.
0:52:55 > 0:52:57It was the rear of the garden.
0:52:57 > 0:53:00The plumbing went over more than what we expected,
0:53:00 > 0:53:03so we're up to about £30,000.
0:53:03 > 0:53:04To sort out all those problems
0:53:04 > 0:53:09and get it looking like this for £30,000 is pretty good going.
0:53:09 > 0:53:12Especially as turning it from two flats into one house
0:53:12 > 0:53:15required a substantial layout re-jig.
0:53:15 > 0:53:20We decided to move the kitchen from upstairs down to this level,
0:53:20 > 0:53:22because it gives better access to the decking and the balcony.
0:53:22 > 0:53:28We thought it was just a better place, really. It was a bit of a dead area down here.
0:53:28 > 0:53:32Really, the main reason was to make sure we have a spacious lounge upstairs.
0:53:32 > 0:53:36It's turned out really well.
0:53:36 > 0:53:40And with builder Mark taking charge of the project, it sounds like their
0:53:40 > 0:53:44first joint venture into renovation has gone relatively smoothly.
0:53:44 > 0:53:47I don't think we can call it working together. Mark's done all the work.
0:53:47 > 0:53:49All I've done really is moan quite a lot
0:53:49 > 0:53:51when he's rang up to tell me how much he's spending.
0:53:51 > 0:53:55So that's really been my input.
0:53:55 > 0:53:58But we both now realise how much is involved in a job in this area.
0:53:58 > 0:54:03But also I think from the boys' point of view who have worked for Mark,
0:54:03 > 0:54:07it's meant that they've all been working for three months in what is a very quiet time
0:54:07 > 0:54:11in the building industry. So from that point of view, I think everybody's turned out happy.
0:54:11 > 0:54:15- So everybody's happy.- Happy enough to do another one together?
0:54:15 > 0:54:18We've been looking for other properties, but nothing's come up
0:54:18 > 0:54:20that we've thought we're in the market for.
0:54:20 > 0:54:25But if this sells quickly, obviously we'll move on as quickly as we can.
0:54:25 > 0:54:28They purchased this property for £10,500
0:54:28 > 0:54:31and spent around £30,000 on the work.
0:54:31 > 0:54:34That makes their total outlay £40,500.
0:54:38 > 0:54:41We invited two local estate agents along to hear
0:54:41 > 0:54:43what they make of the house now.
0:54:44 > 0:54:47I am very impressed with the quality of the work
0:54:47 > 0:54:50and the refurbishment that they have carried out.
0:54:50 > 0:54:51I can't find any faults with it.
0:54:51 > 0:54:54I think the additional downstairs bathroom,
0:54:54 > 0:54:58possibly because there was nothing else they could do with that area,
0:54:58 > 0:55:00has also added to the value of the property.
0:55:00 > 0:55:03I think they've done a very good job on the refurbishments.
0:55:03 > 0:55:07They've got nice-sized bedrooms, a good-sized kitchen and bathroom,
0:55:07 > 0:55:12and you've got the additional shower room on the lower ground floor.
0:55:13 > 0:55:15So their first impressions are favourable.
0:55:15 > 0:55:19But how about those all-important numbers?
0:55:19 > 0:55:23The boys are set on selling, but if they did let,
0:55:23 > 0:55:27these estate agents suggest they could fall between £375
0:55:27 > 0:55:33and £395 per calendar month, giving a yield of over 11 per cent.
0:55:35 > 0:55:38That would be a fantastic return.
0:55:38 > 0:55:43But with the focus purely on selling, what could they get for that?
0:55:43 > 0:55:49This property, due to its location, I believe will only achieve in the region of £55,000.
0:55:49 > 0:55:54If I was to sell this property, I would market it at £60,000.
0:55:54 > 0:55:58I thought it would have been a little bit higher, to be honest.
0:55:58 > 0:56:03I know it's not in the best location, but realistically
0:56:03 > 0:56:09if you put this on the market for around £70,000, I think it would get 60, definitely.
0:56:09 > 0:56:12- I think 55 is too low, personally. - Yes, I think so.
0:56:12 > 0:56:16I think 60 for a quick sale - I think that would be about right.
0:56:16 > 0:56:19- I'd accept that. - Yes, I would as well.
0:56:19 > 0:56:22If they sold for £60,000 they'd make a pre-tax profit
0:56:22 > 0:56:23of £19,500 between them.
0:56:23 > 0:56:29We just bought this just for fun, almost.
0:56:29 > 0:56:32It was an impulse buy, but it's worked out well really.
0:56:32 > 0:56:37- Yes, definitely. - If Mark's happy, I'm happy.
0:56:37 > 0:56:39I didn't do too much, so if he's happy, so be it.
0:56:39 > 0:56:42It's been a challenge, but it's all been good fun.
0:56:44 > 0:56:49We hope you've enjoyed our insight into the world of auctions.
0:56:49 > 0:56:52Make sure you join us next time for more Homes Under the Hammer.
0:56:52 > 0:56:54- We'll see you then. - Goodbye.- Goodbye.
0:57:08 > 0:57:11Subtitles by Red Bee Media Ltd