0:00:02 > 0:00:05Hello. Well, even when the property market is suffering hard times,
0:00:05 > 0:00:07many of us are still hooked on buying it.
0:00:07 > 0:00:09None more so than Martin and me.
0:00:09 > 0:00:12Yeah, and we're especially fascinated by the auction rooms
0:00:12 > 0:00:17where every year thousands of people buy their home under the hammer.
0:00:42 > 0:00:45We are constantly amazed by the stories that come out of the auction rooms.
0:00:45 > 0:00:48Some real-life dramas, some real-life successes.
0:00:48 > 0:00:52Yes, so here are some real-life properties that have all been bought
0:00:52 > 0:00:55and here are the tales they've come to tell.
0:00:56 > 0:00:59'I'm in Lincolnshire where there's an old tradition
0:00:59 > 0:01:03'that front doors are only used to bring in babies, a bride or a coffin.'
0:01:03 > 0:01:05So I think we'll go in the back way.
0:01:06 > 0:01:08'This terrace in Surrey has plenty of potential.'
0:01:08 > 0:01:12And, of course, you've got something very nice to look out onto.
0:01:12 > 0:01:15'You might even say it's coming up roses.
0:01:16 > 0:01:20'From outside, this house in Wolverhampton looks in reasonable nick.
0:01:20 > 0:01:23'But what's in store behind the front door?'
0:01:23 > 0:01:26On the inside, look at all this space!
0:01:27 > 0:01:30'All these properties were sold at auction.
0:01:30 > 0:01:33'We'll find out who bought them and what they paid for them
0:01:33 > 0:01:36- 'when they went under the hammer.' - HAMMER BANGS
0:01:44 > 0:01:50Lincolnshire is one of the most sparsely-populated counties in the country,
0:01:50 > 0:01:54characterised by open countryside dotted with little villages.
0:01:54 > 0:01:59Well, the lot that was up for auction gave somebody the chance to buy a little bit of the landscape.
0:02:01 > 0:02:05# Among the fields of gold #
0:02:06 > 0:02:11'Nestling between the fields is the rural hamlet of Kexby
0:02:11 > 0:02:14'and the auction lot I'm here to see.'
0:02:15 > 0:02:19So, what was on offer? Well, it's a detached former farmhouse
0:02:19 > 0:02:21set in large grounds with outbuildings.
0:02:21 > 0:02:26It had a guide price of 300,000 quid. Can't wait to see it.
0:02:26 > 0:02:31Now, there is a tradition in Lincolnshire that front doors are only used for three things.
0:02:31 > 0:02:34Bringing in a new baby, a bride or a coffin.
0:02:35 > 0:02:38So I think we'll go in the back way.
0:02:39 > 0:02:43'The front of the property exudes country charm
0:02:43 > 0:02:45'and the back is no different.
0:02:47 > 0:02:50'First impressions - fantastic!
0:02:52 > 0:02:54'Let's take a look inside.'
0:02:55 > 0:02:58So, what kind of condition are we going to find inside?
0:02:58 > 0:03:02Well, I tell you what, if the kitchen's anything to go by, it's looking pretty good.
0:03:02 > 0:03:06Lots of white goods still left here. Obviously, the units are quite old,
0:03:06 > 0:03:10but perfectly serviceable, and it's a nice size space.
0:03:10 > 0:03:12Lots of windows, lots of light.
0:03:12 > 0:03:16So, setting a very, very good scene.
0:03:16 > 0:03:19And it continues in here. Lovely kind of entrance area.
0:03:19 > 0:03:22Sort of winding staircase up to the bedrooms.
0:03:22 > 0:03:26Then down towards the unused front door.
0:03:26 > 0:03:31Front sitting room on that side with a nice-looking log burner.
0:03:31 > 0:03:34A good size space. And then another sitting room on this side.
0:03:34 > 0:03:38Bay windows. And, in terms of a space, it's a good one.
0:03:38 > 0:03:42Another open fire there. And then through to a little conservatory.
0:03:43 > 0:03:49'So far, so good. I'm starting to be just a teeny bit smitten by this house.
0:03:49 > 0:03:51'Let's continue our nosy around.'
0:03:53 > 0:03:57So, upstairs, and you've got this funny little landing area here
0:03:57 > 0:04:02with the bathroom on that side. Doesn't look to be too bad size or condition.
0:04:02 > 0:04:06In fact, to be honest, the whole house, you could almost move into it as it is.
0:04:06 > 0:04:08But up onto the main landing area.
0:04:08 > 0:04:14Three bedrooms. Decent size one there. Then two big ones at the front of the property.
0:04:14 > 0:04:18And then that, which is described as a study. It certainly isn't a forth bedroom.
0:04:18 > 0:04:24What it is is potentially... an en suite in waiting.
0:04:24 > 0:04:27# I am waiting
0:04:27 > 0:04:29# I am waiting
0:04:29 > 0:04:33# Oh, yeah, oh, yeah #
0:04:33 > 0:04:38'I keep waiting for this property to disappoint my expectations somehow,
0:04:38 > 0:04:40'and yet, it doesn't.
0:04:41 > 0:04:44'The decoration may not be to everyone's taste,
0:04:44 > 0:04:47'but that's a problem with an easy solution.
0:04:49 > 0:04:54'Now, you may remember that I said the auction lot came with spacious grounds.
0:04:54 > 0:05:00'Let's find out exactly how large by exploring this glorious garden.
0:05:02 > 0:05:07# Such a pretty house
0:05:07 > 0:05:14# In such a pretty garden
0:05:14 > 0:05:18'Well, if I was only a tiny bit smitten previously,
0:05:18 > 0:05:21'I'm full-blown in love with this auction lot now.
0:05:23 > 0:05:28'There's also a delightful apple orchard and a whopping seven acres of land.
0:05:32 > 0:05:38'And there's more. On top of all that, there are these extraordinary outbuildings.'
0:05:39 > 0:05:43Now, what are your options? Well, you could just keep them like this and store things,
0:05:43 > 0:05:46have an old car that you're restoring, whatever.
0:05:46 > 0:05:50Or you could look at applying for planning permission to convert into, say, residential.
0:05:50 > 0:05:52A granny annex or something like that.
0:05:52 > 0:05:57Live/work space, that's really encouraged in rural communities. So lots of options.
0:05:57 > 0:06:00Or a ruthless developer could just come in here and say,
0:06:00 > 0:06:02"Knock it all down and build a house here."
0:06:02 > 0:06:05Ooh. What's going to happen?
0:06:07 > 0:06:10'As far as this rural idyll is concerned,
0:06:10 > 0:06:15'I'm inclined to let my romantic heart overrule my developer's head.
0:06:21 > 0:06:25'We invited a local estate agent to give us his opinion on this lot,
0:06:25 > 0:06:29'which had a guide price of £300,000.'
0:06:29 > 0:06:32To improve the house, I'd certainly look to extend.
0:06:32 > 0:06:36It needs a bigger kitchen. It needs a glazed element,
0:06:36 > 0:06:38probably a sun room on from the kitchen,
0:06:38 > 0:06:40to look out across this fantastic land.
0:06:40 > 0:06:46'Well, that would be wonderful, but would require a substantial budget.
0:06:46 > 0:06:49'What about the barn and outbuildings?'
0:06:49 > 0:06:51You could simply use them as stables.
0:06:51 > 0:06:55You could use them as holiday lets. Obviously, you need consent for that.
0:06:55 > 0:06:58You could use them as offices, and again, you'll need consent.
0:06:58 > 0:07:01Or the obvious choice is to go for residential.
0:07:02 > 0:07:07'How much does the estate agent believe this auction lot is worth in its current condition?'
0:07:07 > 0:07:13I would've thought that the value as it stands is just over £300,000.
0:07:13 > 0:07:16But if you actually improved what's there now
0:07:16 > 0:07:19and just did a decorative refurbishment,
0:07:19 > 0:07:22well, you'd be getting on for £400,000.
0:07:22 > 0:07:24However, if you extended it,
0:07:24 > 0:07:26added one or two bedrooms
0:07:26 > 0:07:30and a bigger kitchen and get more light into the place,
0:07:30 > 0:07:33I think you're looking at an entirely different set of values.
0:07:33 > 0:07:36You could be £500,000 to £600,000.
0:07:36 > 0:07:40So there's real value to be added, as well.
0:07:40 > 0:07:43'Wow. Those are some impressive figures.
0:07:43 > 0:07:46'Rental-wise, the estate agent believes the house
0:07:46 > 0:07:52'could be let for as much as £1,200 per calendar month once renovated.'
0:07:52 > 0:07:56Well, who wouldn't completely fall in love with this place?
0:07:56 > 0:07:59The house is charming, you've got loads of land
0:07:59 > 0:08:02and a garden that you could just lose yourself in.
0:08:02 > 0:08:05Will it end up being somebody's rural retreat
0:08:05 > 0:08:08or will a developer see the potential of the outbuildings?
0:08:08 > 0:08:11Let's go to the auction and find out who bought it.
0:08:11 > 0:08:15Who'll start me at 280 for the property and let's move on?
0:08:15 > 0:08:17280 I start. At 280.
0:08:17 > 0:08:20282. 285.
0:08:20 > 0:08:23288. At 288.
0:08:23 > 0:08:26290. 292.
0:08:26 > 0:08:30295. This is real, real value for money here.
0:08:30 > 0:08:32At £295,000.
0:08:32 > 0:08:35If you are here to buy this property, I suggest you make your move
0:08:35 > 0:08:38because otherwise I shall sell it.
0:08:38 > 0:08:40At 295. 298.
0:08:40 > 0:08:45It's against you, sir. Lady's bid at the back of the room at £298,000.
0:08:45 > 0:08:47Once.
0:08:47 > 0:08:51£298,000 twice.
0:08:52 > 0:08:55Third and last time of asking. I cannot help but linger.
0:08:55 > 0:08:59All done at £298,000?
0:08:59 > 0:09:02HAMMER BANGS
0:09:02 > 0:09:06'Well, "wow" is exactly what I was thinking.
0:09:06 > 0:09:11'The successful bid of £298,000, two grand under the guide price,
0:09:11 > 0:09:15'came from Julie who'd brought family member Richard along
0:09:15 > 0:09:18'to her first ever auction for moral support.
0:09:22 > 0:09:27'Julie's an auxiliary teacher and her husband Neil's a mechanical engineer.
0:09:27 > 0:09:30'It seems that we were all bowled over by this property.'
0:09:30 > 0:09:33Neil, Julie, lovely to meet you both.
0:09:33 > 0:09:35Congratulations. What a gorgeous place!
0:09:35 > 0:09:38- Thank you. We like it, yeah. - No kidding.
0:09:38 > 0:09:42Tell me why, if it's not obvious, why you wanted to buy it.
0:09:42 > 0:09:45We decided... I came home from work and he said, "We're on the move"
0:09:45 > 0:09:49so I said, "What we going to move to?" and he said, "I fancy keeping some sheep."
0:09:49 > 0:09:53I said, "Well, I'm having some pigs, then." As we looked around,
0:09:53 > 0:09:58he said, "I'd like an orchard, I want a stable door, I fancy some ponds."
0:09:58 > 0:10:00I said, "I fancy a wood."
0:10:00 > 0:10:06- And this place just ticked, ticked, ticked all the way along. - We searched the internet for months.
0:10:06 > 0:10:08And this place was on the internet.
0:10:08 > 0:10:11So it was ideally what we'd been looking for.
0:10:11 > 0:10:14- So this is a place for you to live in, is it?- Yes.- Yeah.
0:10:14 > 0:10:18- Wow.- We didn't think we'd get a chance, but we did, didn't we?- Mm.
0:10:18 > 0:10:21- Why didn't you think you'd get a chance?- Well, it went to auction
0:10:21 > 0:10:26- and there was that figure there... - We were umming and ahhing whether we could afford it.
0:10:26 > 0:10:30We thought it was just going to go out of our reach,
0:10:30 > 0:10:36but the gods were smiling on us or whatever that day and I was lucky. We were lucky.
0:10:36 > 0:10:38# Oh, lucky me
0:10:38 > 0:10:40# Hey, lucky you
0:10:40 > 0:10:44'And I for one couldn't be happier for them.
0:10:44 > 0:10:46'They have the home of their dreams.
0:10:48 > 0:10:52'The couple have a budget of around £15,000 to carry out the renovation.'
0:10:53 > 0:10:56So tell me what your plans for it are.
0:10:56 > 0:11:01I've got a lot of work to do on the external walls, cos it's a Victorian house, there's no cavity.
0:11:01 > 0:11:04So I've got to insulate all the external walls
0:11:04 > 0:11:07and generally tidy everything up and make it habitable.
0:11:07 > 0:11:09I'm not sure what we're going to do with the windows yet
0:11:09 > 0:11:13because the glass is the very original glass
0:11:13 > 0:11:15which is paper-thin
0:11:15 > 0:11:19- and we don't like the idea of freezing cold... You don't like it, do you?- No.
0:11:19 > 0:11:22- THEY LAUGH - And the kitchen?
0:11:22 > 0:11:25Well, it's not displeasing at the minute.
0:11:25 > 0:11:29- No! It's fine! - It's quite pleasant, so...
0:11:29 > 0:11:34- I think that'll stay for a bit until we get everything else sorted. - And see what we want to do with that.
0:11:34 > 0:11:37Go through a room at a time and redecorate and whatever needs doing.
0:11:37 > 0:11:40- Who's going to do the work? - I'm afraid it's going to be me.
0:11:40 > 0:11:44And is the idea to stay where you are until the work is done
0:11:44 > 0:11:47- or to move in?- Move in. - We shall be moving in and doing a room at a time.
0:11:47 > 0:11:51- How quickly will you move in? - Probably this weekend.
0:11:51 > 0:11:53- This weekend?- Maybe, yeah. THEY LAUGH
0:11:53 > 0:11:56- Right!- She's very keen.- No kidding!
0:11:56 > 0:11:59# Ooh, waiting for the weekend
0:11:59 > 0:12:03# Ooh, waiting for the weekend to come
0:12:05 > 0:12:07'The couple currently live in rented accommodation
0:12:07 > 0:12:10'and are funding the purchase and renovation of this place
0:12:10 > 0:12:13'from the sale of their old home.
0:12:13 > 0:12:16'They plan to settle into their new rural retreat
0:12:16 > 0:12:19'before making any major decorating decisions.
0:12:19 > 0:12:25'But Julie in particular is looking forward to getting her hands dirty in the garden
0:12:25 > 0:12:28'and starting a country kitchen vegetable patch.'
0:12:28 > 0:12:31How are you going to manage the grounds? Because they're great
0:12:31 > 0:12:35but seven-odd acres, that comes with a certain amount of...
0:12:35 > 0:12:38What's the word? ..work.
0:12:38 > 0:12:40- Yeah.- Hard work.- Yeah, hard work.
0:12:40 > 0:12:45We're very fortunate. Neil does shift work, so he's four on, four off.
0:12:45 > 0:12:49- So the four off... - I'll be working here. - SHE LAUGHS
0:12:49 > 0:12:53What about the outbuildings? Cos you've got I don't know how many.
0:12:53 > 0:12:56- Numerous.- We want to actually put them back into action.
0:12:56 > 0:13:01Some of the tiles have come off, there's no felt underneath the tiles, so I want to redo the roofs
0:13:01 > 0:13:06and get them back into action. We might keep pigs in some of them cos there's pigsties.
0:13:06 > 0:13:10- Well, I'm delighted for you both. Congratulations. - Thank you very much.- And good luck.
0:13:10 > 0:13:13- Can't wait to see how you get on. - Thank you.- Thank you.
0:13:14 > 0:13:18Well, how fantastic that Neil and Julie have found this place.
0:13:18 > 0:13:20It's almost like it's meant to be.
0:13:20 > 0:13:24I hope it turns out to be the rural idyll they're hoping for.
0:13:24 > 0:13:27But there's a lot of work to do and they'll be living in it while they do it,
0:13:27 > 0:13:31and at the same time, trying to maintain those seven-odd acres.
0:13:31 > 0:13:34Lots of work. I think they'll love it.
0:13:34 > 0:13:36You can find out how they get on later in the show.
0:13:39 > 0:13:42I've travelled to a place called Mitcham today.
0:13:42 > 0:13:44Now, it's officially located in Surrey,
0:13:44 > 0:13:47although it's right on the outskirts of the capital.
0:13:47 > 0:13:51Streatham in Southwest London is its next-door neighbour.
0:13:51 > 0:13:54Now, buyers and renters are just drawn to this area
0:13:54 > 0:13:57because it's a lot more affordable than neighbouring Streatham,
0:13:57 > 0:14:03where an average terraced house could easily cost in excess of £350,000.
0:14:03 > 0:14:07Here in Mitcham, well, you can pick up a similar property
0:14:07 > 0:14:11for under 250 grand. Now, that's more like it!
0:14:11 > 0:14:14# I like it, I like it
0:14:14 > 0:14:18'And with two mainline train stations to choose from,
0:14:18 > 0:14:20'it's easy to get to and from Mitcham.
0:14:20 > 0:14:24'The pedestrianised shopping centre is great.
0:14:24 > 0:14:30'It's had a makeover recently, as the local council are keen to encourage business into this area.
0:14:30 > 0:14:32'In pride of place is the Victoria clock.
0:14:32 > 0:14:37'It was erected for Queen Victoria's Golden Jubilee in 1887
0:14:37 > 0:14:41'and now I've got a royal engagement with a property nearby.'
0:14:41 > 0:14:44The house I'm here to see looks out onto this lovely little green,
0:14:44 > 0:14:46so it's off to a great start straight away.
0:14:46 > 0:14:51And it feels like a family-friendly spot and I like this area.
0:14:51 > 0:14:54This is the house. It's a mid-terrace property.
0:14:54 > 0:14:59It's got three bedrooms. And the guide price - £170,000.
0:14:59 > 0:15:01Now, that seems rosy.
0:15:01 > 0:15:04# I never promised you a rose garden
0:15:04 > 0:15:08# Along with the sunshine...
0:15:08 > 0:15:12Well, you could be here all year scraping this wallpaper off.
0:15:12 > 0:15:15But it's got to be done. It will make a world of difference.
0:15:15 > 0:15:20Pull up this old mustard carpet and a modern house emerges.
0:15:20 > 0:15:23Now, we've got a good, solid sitting room through there.
0:15:23 > 0:15:29And at the back of the property, a kitchen with enough space to create a really lovely, contemporary feel.
0:15:29 > 0:15:33I would knock through this here, I think, into this dining area.
0:15:33 > 0:15:36Now, this is an ideal space for that family table.
0:15:36 > 0:15:41And, of course, you've got something very nice to look out onto.
0:15:41 > 0:15:46'Yep, there are even more lovely roses out the back. But more of that later.
0:15:46 > 0:15:49'I've got the rest of the house to explore first.'
0:15:50 > 0:15:55Upstairs has this lovely open landing space with three bedrooms leading off.
0:15:55 > 0:16:01But the big property-developing question is, to go up or not to go up?
0:16:01 > 0:16:04Now, I'm usually keen to increase square-footage,
0:16:04 > 0:16:07but converting that loft to create an extra bedroom
0:16:07 > 0:16:09will cost between 20 and 30 grand.
0:16:09 > 0:16:12Now, will you make that money back?
0:16:12 > 0:16:16Hm, you'll probably only increase the value by the same amount
0:16:16 > 0:16:18and it's not worth doing all that work
0:16:18 > 0:16:22unless, of course, you want to make this your home.
0:16:22 > 0:16:25'It's good to have the option to convert the attic
0:16:25 > 0:16:29'if a large family did move in and needed that extra space,
0:16:29 > 0:16:33'but only if they weren't too worried about that ceiling price, of course.
0:16:33 > 0:16:36'Luckily, they wouldn't need to worry about space in the garden, though.'
0:16:36 > 0:16:39This garden seals the deal for me.
0:16:39 > 0:16:44It needs to be tamed, but it's well stocked with these beautiful, pretty roses.
0:16:44 > 0:16:49And I think it would suit a family, as there's plenty of space for slides, swings and trampolines
0:16:49 > 0:16:51to keep the kids entertained.
0:16:51 > 0:16:57'I think a three-bedroom property so close to London is a bargain at £170,000.
0:16:57 > 0:17:00'Let's find out what a local property expert reckons.'
0:17:04 > 0:17:08My first impressions are that this is a very spacious house
0:17:08 > 0:17:11in a good location, overlooking a green.
0:17:11 > 0:17:13Yeah, a good size garden, as well.
0:17:13 > 0:17:16A good quality refurbishment will really help this property.
0:17:16 > 0:17:23'And with the renovation work done, how much does he think that would add to that £170,000 guide price?'
0:17:24 > 0:17:28This house, safely we can say it would probably reach £250,000 all day long.
0:17:28 > 0:17:31You could perhaps try a little bit more.
0:17:31 > 0:17:37'He also estimates it would let for £1,400 per calendar month,
0:17:37 > 0:17:44'which would be a great return if the buyer picked this up anywhere near that guide price of £170,000.'
0:17:45 > 0:17:47This one could be a great little earner,
0:17:47 > 0:17:51but I think whoever takes this on needs to keep the refurbishment simple.
0:17:51 > 0:17:54Do that and you can't go far wrong.
0:17:54 > 0:17:56So who wanted this? Let's find out.
0:17:56 > 0:18:01Let's move on to lot 11, a mid-terraced house.
0:18:01 > 0:18:04Three beds. Is that 160 somewhere?
0:18:04 > 0:18:07160. 161 anywhere?
0:18:08 > 0:18:11161 162.
0:18:11 > 0:18:14163. 164. 165.
0:18:14 > 0:18:18166. 167. 168.
0:18:18 > 0:18:20169. 170.
0:18:20 > 0:18:23'Well, bidding was fast and furious.
0:18:23 > 0:18:25'This really was a hot property.
0:18:25 > 0:18:28'Let's rejoin that auction action.'
0:18:28 > 0:18:30191.
0:18:32 > 0:18:35191, a new spot. 192. 193.
0:18:35 > 0:18:38193. 194.
0:18:38 > 0:18:42Yeah? 195. Well done. 195.
0:18:43 > 0:18:45Well? 196?
0:18:45 > 0:18:48Yeah? 197?
0:18:48 > 0:18:52OK, well done. 196 with you, sir.
0:18:52 > 0:18:55197? If not, 196, first time.
0:18:55 > 0:18:59Second time. Third and last time, if you're all done.
0:18:59 > 0:19:02- HAMMER BANGS - Sold, 196.
0:19:02 > 0:19:05'And beating off all competition
0:19:05 > 0:19:09'with that final bid of £196,000 was Kesh.
0:19:09 > 0:19:13'He's been a manager for a property company for around six years.
0:19:13 > 0:19:18'This house is his second purchase for his own private portfolio.
0:19:18 > 0:19:21'I met him back there to find out more.'
0:19:23 > 0:19:26Kesh, congratulations. Lovely to meet you.
0:19:26 > 0:19:29So how desperately did you want this house?
0:19:29 > 0:19:31Well, I'd done the research. I'm a local boy.
0:19:31 > 0:19:35I've been there over 20 years, in the area. My parents live down the road.
0:19:35 > 0:19:40And the station's convenient, the transport links are good and I know what the ceiling prices are.
0:19:40 > 0:19:44I know a lot of the agents in the area, so I'd done my research thoroughly.
0:19:44 > 0:19:47- Yeah.- We've done another property just down the road from here
0:19:47 > 0:19:51which has completed. The renovations are all finished now.
0:19:51 > 0:19:54So we knew what kind of budgets were going to be in place,
0:19:54 > 0:19:58I know where to source all the materials. I've done the research on that side, as well.
0:19:58 > 0:20:03- So very thorough.- Yeah.- And being a born and bred Mitcham boy, do you think that stood you in good stead?
0:20:03 > 0:20:07It has done, because that's a starting point for me, on my own patch.
0:20:08 > 0:20:12'Kesh has just recently branched out on his own as a property developer,
0:20:12 > 0:20:15'so it's not only his local knowledge that'll be useful,
0:20:15 > 0:20:19'it's all the experience from his last full-time job.'
0:20:20 > 0:20:24So do you think by doing this, Kesh, this allows you to have more of a quality life?
0:20:24 > 0:20:29Yeah, definitely. Because I'm in control of my own working hours, as well.
0:20:29 > 0:20:33And are you making money from property developing? Are you climbing up the ladder?
0:20:33 > 0:20:36Until we sell that first one, I can't really answer that question.
0:20:36 > 0:20:40But hopefully, we are on the right game now.
0:20:40 > 0:20:43'There's a confidence about Kesh that's hard to ignore.
0:20:43 > 0:20:47'He knows the market and the area inside out.
0:20:47 > 0:20:53'So I'll be fascinated to learn what his expertise will bring to the renovation of this property.'
0:20:53 > 0:20:58Well, this kitchen area downstairs, I think we need to take that wall out,
0:20:58 > 0:21:01because we've done that in the previous house
0:21:01 > 0:21:03and it's made a major difference.
0:21:03 > 0:21:09It's all going to be reskimmed, new lighting, new sockets, total rewire.
0:21:09 > 0:21:12The major works upstairs will be putting the bathroom into one.
0:21:12 > 0:21:16- What is your budget for the work? - Well, we're looking at between £30,000 and £35,000.
0:21:16 > 0:21:21- Hopefully we don't get nowhere near it.- So how long do you think the work is going to take you?
0:21:21 > 0:21:24Worst-case scenario, I think we're looking at about eight weeks.
0:21:24 > 0:21:27- Eight weeks? So you're going to go for it.- Yep.
0:21:27 > 0:21:31- As soon as we're out, you're going to start work. - It's on the market at the moment,
0:21:31 > 0:21:35because we think we may be able to get a buyer that might buy it instantly.
0:21:35 > 0:21:39So you've bought the property, and like this, you've put in on the open market.
0:21:39 > 0:21:43So if you did get a bid, how much would you sell this for untouched?
0:21:44 > 0:21:49- I don't know, about 235, 230. - That is a nice little profit for a day's work.
0:21:49 > 0:21:53- Yep.- Kesh, lovely to meet you. I can't wait to find out what you actually do
0:21:53 > 0:21:57- and if you get that cheeky little buyer before you have to do any work. Well done.- Thank you.
0:21:59 > 0:22:02Will Kesh renovate this place from top to bottom
0:22:02 > 0:22:06and push this over the stamp-duty threshold barrier?
0:22:06 > 0:22:11Or will he leave it untouched and sell it straight on without any problems?
0:22:11 > 0:22:14You can find out how he gets on later in the programme.
0:22:15 > 0:22:18'Coming up, first the bad news.
0:22:18 > 0:22:21'This terrace in Wolverhampton has no central heating, but...'
0:22:21 > 0:22:24Good, good news. A big old kitchen. Look at this!
0:22:25 > 0:22:28'We return to Surrey on a lovely sunny day
0:22:28 > 0:22:31'to get the verdict on Kesh's renovation.'
0:22:31 > 0:22:35It's looking very good. The sun's shining, the property's shining, too.
0:22:36 > 0:22:41'But first, in Lincolnshire, are Neil and Julie happy in their new home?'
0:22:41 > 0:22:45- It was just a dream come true in a way.- Mm.- Wasn't it?- Yes.
0:22:50 > 0:22:56'Let's return to Lincolnshire and this simply sumptuous rural retreat.
0:22:57 > 0:23:01'Not only was there this fantastic farmhouse,
0:23:01 > 0:23:04'but also a glorious garden.
0:23:09 > 0:23:13'Also, there was an apple orchard. Isn't it wonderful?
0:23:13 > 0:23:17'And there was more. A lot more.
0:23:17 > 0:23:19'Seven acres of land.
0:23:21 > 0:23:25'And a couple of outbuildings ripe for developing.
0:23:27 > 0:23:31'Enticed to the auction to bid on this lot was Julie.
0:23:31 > 0:23:37'She and her husband Neil were as hooked as I was by this property's obvious attractions.'
0:23:38 > 0:23:42- So this is a place for you to live in, is it?- Yes.- Yeah.- Wow.
0:23:42 > 0:23:45- We didn't think we'd get a chance, but we did, didn't we?- Mm.
0:23:45 > 0:23:49- Why didn't you think you'd get a chance?- We were umming and ahhing whether we could afford it.
0:23:49 > 0:23:52We thought it was just going to go out of our reach,
0:23:52 > 0:23:55but the gods were smiling on us or whatever that day
0:23:55 > 0:23:58and I was lucky. We were lucky.
0:24:01 > 0:24:04'Neil and Julie paid £298,000 for the property
0:24:04 > 0:24:09'and plan to move in straight away and begin the renovations.
0:24:09 > 0:24:12'Neil was going to bear the burden of the majority of the work.
0:24:12 > 0:24:16'So has he managed to make this house into their new home?
0:24:17 > 0:24:20'Just over one year later, we're back.'
0:24:20 > 0:24:25# On my own
0:24:25 > 0:24:30# This is where I build my home
0:24:37 > 0:24:41# This will always be my home
0:24:42 > 0:24:46'Neil and Julie have filled this farmhouse with little touches of decoration
0:24:46 > 0:24:51'that reflect their personalities and have turned the house into their home.
0:24:51 > 0:24:55'From the moment they laid their eyes on this property,
0:24:55 > 0:24:58'it was love at first sight.
0:24:58 > 0:25:02'So they must have been overjoyed to move in.'
0:25:02 > 0:25:05When we got here, we just fell in love with it and didn't want to leave.
0:25:05 > 0:25:10- So it's nice!- It was just so beautiful when we moved in,
0:25:10 > 0:25:12it was a nice, sunny day and everything
0:25:12 > 0:25:15- and it was just a dream come true in a way.- Mm.
0:25:15 > 0:25:17- Yeah. Wasn't it?- Yes.
0:25:26 > 0:25:31'The couple did the renovation while also living in their new home.
0:25:31 > 0:25:35'First job was replacing all the single-glazed windows
0:25:35 > 0:25:38'with sash-style double-glazing.
0:25:38 > 0:25:41'Very appropriate for this property.
0:25:41 > 0:25:44'Then Neil began insulating the exterior walls.'
0:25:45 > 0:25:51In this room, we've actually had to insulate the outside walls.
0:25:51 > 0:25:55And you can see the depth of the insulation.
0:25:55 > 0:25:59We had to baton the wall out, put the insulation between the batons,
0:25:59 > 0:26:04plasterboard the wall and then skim it all and decorate it,
0:26:04 > 0:26:06which is quite a big job.
0:26:10 > 0:26:14'On the landing is the bathroom, which remains the same.
0:26:20 > 0:26:23'But upstairs in the three bedrooms,
0:26:23 > 0:26:26'Neil and Julie have continued to make this home their own.
0:26:26 > 0:26:33'The bedrooms are now clean and fresh and a blank canvas for Julie to decide how to decorate them.
0:26:35 > 0:26:38'I'm glad to see they've kept the fireplaces
0:26:38 > 0:26:40'which add to the charm of this property.
0:26:42 > 0:26:46'As Neil's a mechanical engineer and Julie an auxiliary teacher,
0:26:46 > 0:26:50'the couple are fitting the renovation work around their full-time jobs.
0:26:50 > 0:26:54- 'How are they getting on with that?' - Tiring, I'm afraid.
0:26:54 > 0:26:59We've enjoyed it, which is the main thing. I think if we didn't enjoy it, it would've been very boring
0:26:59 > 0:27:01and tiring, but we've enjoyed it very much.
0:27:01 > 0:27:06- We tend to work as a team, really. - Yeah.- So...
0:27:06 > 0:27:08- My super-labourer. - THEY LAUGH
0:27:08 > 0:27:10'And as for the glorious garden,
0:27:10 > 0:27:13'well, it's still glorious.
0:27:23 > 0:27:29'The couple would've liked to start a vegetable garden, but have been unable due to the weather
0:27:29 > 0:27:32'and because their attention has been focused indoors.'
0:27:32 > 0:27:36It's been nice to actually get out of the house and into the garden.
0:27:36 > 0:27:40I tend to go down every day to the pond, feed the fish
0:27:40 > 0:27:42and stand there for five or ten minutes watching them
0:27:42 > 0:27:46and then come back up. It's my relaxation period.
0:27:49 > 0:27:53'As for the outbuildings, they remain relatively untouched.
0:27:53 > 0:27:59'But Neil removed and stored the slate tiles as they were in danger of falling off.
0:27:59 > 0:28:02'So, what are the couple's plans for the barns?'
0:28:02 > 0:28:06Just to restore them, really. Cos they're old stable buildings,
0:28:06 > 0:28:08it'd be nice to keep them back as they originally are.
0:28:08 > 0:28:13It's nice to look at them and say, "How did they make that?" and "How did they do this?"
0:28:14 > 0:28:17'This is an ongoing project
0:28:17 > 0:28:23'and so far Neil and Julie estimate they've spent around £15,000 on the renovation.
0:28:23 > 0:28:27'If you add that to their purchase price of £298,000,
0:28:27 > 0:28:29'plus stamp duty of just under £9,000,
0:28:29 > 0:28:35'that gives them a total outlay so far of around £322,000.
0:28:35 > 0:28:39'So, has all the hard work been worthwhile
0:28:39 > 0:28:41'and are they happy in their new home?'
0:28:41 > 0:28:44- I've enjoyed every bit of it. - I've enjoyed the project,
0:28:44 > 0:28:48but I think after a while, you just long for something really clean
0:28:48 > 0:28:52where you're not having to feel dusty all the time and just to have some of your things out
0:28:52 > 0:28:56and out of boxes for once, which would be nice.
0:28:57 > 0:28:59'We invited two local property experts
0:28:59 > 0:29:04'to give us their opinion on Neil and Julie's new home.'
0:29:06 > 0:29:08The property's a very nice property, very unique property.
0:29:08 > 0:29:11They've obviously gone through a scheme of modernisation
0:29:11 > 0:29:13since we last saw the property
0:29:13 > 0:29:17and they are about 50 percent through that at the moment.
0:29:17 > 0:29:21And it's looking in good order.
0:29:21 > 0:29:23Great efforts have been made to refurbish this home.
0:29:23 > 0:29:27Continued development would be advisable
0:29:27 > 0:29:31to really complement and retain the original character and features.
0:29:31 > 0:29:37'Bearing in mind the couple's total spend so far of £322,000,
0:29:37 > 0:29:43'how much do the experts believe this property and the seven acres of land it sits upon is now worth?'
0:29:45 > 0:29:51The property, in its current state, is in the region of £360,000 to £370,000.
0:29:51 > 0:29:55I think this could be pushed up to the £400,000 mark once complete.
0:29:55 > 0:30:00In my opinion, in current condition, the property could achieve somewhere in the region of £350,000.
0:30:00 > 0:30:07'Well, those valuations could earn the couple a gross profit of between £28,000 and £48,000.
0:30:08 > 0:30:11'But the experts also believe that if Neil and Julie
0:30:11 > 0:30:17'were to develop the barn into a residential property, it could sell for as much as 250 grand.
0:30:20 > 0:30:23'So there is money to be made here.
0:30:28 > 0:30:34'Neil and Julie have made, as they said, their dream come true with their new home.
0:30:34 > 0:30:39'So, has living through the dirt and grime of the renovation all been worthwhile?'
0:30:39 > 0:30:42I think so. At the end, yes.
0:30:42 > 0:30:45It was a bit a trauma during the process of the alterations,
0:30:45 > 0:30:49but once they're now there, it's worth its weight in gold, I think, now.
0:30:49 > 0:30:53# Among the fields of gold
0:30:54 > 0:30:58Going to the auction was a good experience, thoroughly enjoyed it.
0:30:58 > 0:31:00If you've got a dream, go for it.
0:31:05 > 0:31:10Wolverhampton is a metropolitan borough in the West Midlands
0:31:10 > 0:31:13and it was granted city status in 2000
0:31:13 > 0:31:16as part of the millennium celebrations.
0:31:16 > 0:31:19It's also home to lots of affordable property.
0:31:19 > 0:31:22The average price of a terraced house in this part of the UK
0:31:22 > 0:31:25is just over £100,000.
0:31:26 > 0:31:32'Here in this Wolverhampton suburb, you really get a lot of property for not a lot of money.
0:31:32 > 0:31:35'The house I'm here to see is a three-bedroom mid-terrace
0:31:35 > 0:31:40'with a guide price of between £45,000 and £49,000.
0:31:40 > 0:31:44'Now, both Martin and I are always banging on about it,
0:31:44 > 0:31:46'but it does always pay to do your research.
0:31:46 > 0:31:48'And, as with the rest of the country,
0:31:48 > 0:31:51'I've discovered that sales around here are weak.
0:31:51 > 0:31:55'There is, however, a very strong rental market,
0:31:55 > 0:31:58'so that's ideal if you're looking for a long-term investment.
0:31:58 > 0:32:01'From the outside, I can see the windows are double-glazed.
0:32:01 > 0:32:07'Overall, it's not in too bad nick. But what's in store behind the front door?'
0:32:07 > 0:32:11And on the inside... Wow! Look at all this space!
0:32:11 > 0:32:13Look at the area you've got! Fantastic!
0:32:13 > 0:32:16This is a great family room.
0:32:16 > 0:32:20And good, good news. A big old kitchen. Look at this!
0:32:20 > 0:32:22I mean, this is great for a family.
0:32:22 > 0:32:24You could easily have a dining area down there.
0:32:24 > 0:32:29Obviously, you'd need to think about installing something a lot more attractive,
0:32:29 > 0:32:34but I really like it, and there's a fair size garden out there, too.
0:32:38 > 0:32:41'Right now, it's overgrown and under-loved.
0:32:41 > 0:32:45'But even if you're not green-fingered, get stuck in outside
0:32:45 > 0:32:48'and at least make sure the lawn is well maintained.
0:32:48 > 0:32:53'Wooden fencing should be in good order, weather-treated with varnish and stained to make it shine.
0:32:53 > 0:32:57'Always worth thinking of your garden as another room in the house
0:32:57 > 0:32:59'when it comes to selling.
0:32:59 > 0:33:01'Let's take a little look upstairs.
0:33:01 > 0:33:04'A big bonus is the bathroom suite,
0:33:04 > 0:33:07'which is in good condition and salvageable,
0:33:07 > 0:33:10'which could help keep costs down.
0:33:11 > 0:33:16'There are three bedrooms, one single and two good-size doubles.
0:33:16 > 0:33:21'Cosmetically, they require updating with particular attention paid to the quality of the finish.
0:33:21 > 0:33:24'But my big worry is the storage heaters.
0:33:24 > 0:33:28'Installing a gas central-heating system is a must, I think,
0:33:28 > 0:33:31'but requires certified professionals to carry it out.
0:33:31 > 0:33:34'With the potential profit margin tight on this terrace,
0:33:34 > 0:33:40'whoever bought this property will need to keep a close eye on their budget.
0:33:46 > 0:33:50'We invited a local estate agent to cast his expert eye
0:33:50 > 0:33:55'over this auction lot, which had a guide price of £45,000 to £49,000.'
0:33:55 > 0:33:58It's not a bad little house.
0:33:58 > 0:34:02It would benefit greatly from central heating
0:34:02 > 0:34:05and probably a new kitchen.
0:34:05 > 0:34:09That's really about the only works that I would say is necessary, apart from decoration.
0:34:14 > 0:34:19'Would the estate agent recommend selling or renting it out?'
0:34:19 > 0:34:22The rental market is quite strong currently,
0:34:22 > 0:34:27erm, due to the difficulty of obtaining mortgages.
0:34:27 > 0:34:29People still want homes to live in
0:34:29 > 0:34:32but can't afford big deposits,
0:34:32 > 0:34:35so renting is the next option.
0:34:38 > 0:34:41'So how much could this place achieve if let out?'
0:34:42 > 0:34:44If it's done up to a reasonable standard,
0:34:44 > 0:34:49I would imagine that the rental income on a property like this
0:34:49 > 0:34:54would be between £495 and £525 per calendar month.
0:34:55 > 0:34:57'What about the sale value?'
0:34:57 > 0:35:00If the property's done up to a reasonable standard,
0:35:00 > 0:35:03then I think the new owner is likely to achieve
0:35:03 > 0:35:07a figure in the region of £75,000 to £80,000.
0:35:10 > 0:35:14And so the advice for someone taking this on, renovate it and rent it out.
0:35:14 > 0:35:18The rental market is buoyant but the sales market isn't as strong.
0:35:18 > 0:35:23I know what I'd be doing. Let's see who fancied this nice little earner when it went under the hammer.
0:35:24 > 0:35:28Ought to be 50 to start. 50,000 to start.
0:35:30 > 0:35:3340,000 then to get off. Who's going to jump in at 40?
0:35:33 > 0:35:36Sir, 40,000. Do I hear 45 anywhere?
0:35:36 > 0:35:38At 40. 45, I do. 45.
0:35:38 > 0:35:41At £45,000 on my right.
0:35:41 > 0:35:44At 45,000 for the first time. Are you all done?
0:35:44 > 0:35:47I'll take 2. 47, sir? OK, 47.
0:35:47 > 0:35:49Do the same again, sir, 49 if you wish.
0:35:49 > 0:35:54At 47, he's in the middle. You're out on the right, sir, at 47.
0:35:54 > 0:35:5749, sir? I'll take your two. 49. 51, sir?
0:35:57 > 0:36:0150, then? Thank you, sir. 50. 51?
0:36:01 > 0:36:0551, sir? Are you sure? You've only had one bid, sir. It's not very good.
0:36:05 > 0:36:08Once you start, you shouldn't stop.
0:36:08 > 0:36:10Are you absolutely positive?
0:36:10 > 0:36:12In that case, 50,000, he's standing at the back.
0:36:12 > 0:36:16It's being sold, make no mistake. So everybody seated is out.
0:36:16 > 0:36:18Fresh bidder, 51. 52, sir?
0:36:18 > 0:36:2152 at the back, sir? 51 is seated.
0:36:21 > 0:36:25Fresh bidder knocks you all out. At £51,000 for the first time.
0:36:25 > 0:36:28It is being sold, make no mistake. You're in, sir, at 51.
0:36:28 > 0:36:30At £51,000 for the second time.
0:36:30 > 0:36:34Are you coming back in? Anywhere on the right or at the back, sir?
0:36:34 > 0:36:38At £51,000. Being sold, make no mistake.
0:36:38 > 0:36:41Are you all done for the third and very last time?
0:36:41 > 0:36:45- You're out on the right. It's your bid, sir. - HAMMER BANGS
0:36:45 > 0:36:48'The hammer fell on a bid of £51,000 from James.
0:36:48 > 0:36:51'This is his first ever auction purchase,
0:36:51 > 0:36:55'and with his first and only ever bid, he bought a house! Brilliant!'
0:36:57 > 0:37:00# For I've got beginner's luck
0:37:00 > 0:37:03# The first time that I'm in love
0:37:03 > 0:37:06# I'm in love with you
0:37:06 > 0:37:10'James financed the purchase of this property with money of his own
0:37:10 > 0:37:13'and his partner, along with members of his family.
0:37:13 > 0:37:17'He currently works as a supply teacher in business and IT studies,
0:37:17 > 0:37:19'but he used to work as an estate agent
0:37:19 > 0:37:22'so perhaps he has the ideal combination of skills
0:37:22 > 0:37:24'to make the move into property developing.
0:37:24 > 0:37:27'Let's meet him.'
0:37:27 > 0:37:32James, congratulations. Lovely to meet you. So you made one bid and the property was yours.
0:37:32 > 0:37:36- That's correct, yes. - How much research did you do into buying this?
0:37:36 > 0:37:38Er, we went to see a number of properties,
0:37:38 > 0:37:42er, went to five originally,
0:37:42 > 0:37:45whittled it down to three, went to see the other three a second time,
0:37:45 > 0:37:48then at the last moment, the property which we were going to go for,
0:37:48 > 0:37:52we found there was a mine shaft underneath the living room floor.
0:37:52 > 0:37:57- So that was...- Really? - So this was the backup,
0:37:57 > 0:37:59and, yeah, we managed to get it in the end.
0:37:59 > 0:38:04So you've taken this seriously, haven't you? Lots of research, lots of properties, lots of plans.
0:38:04 > 0:38:08Yes, yeah. Well, I spent seven years in estate agency,
0:38:08 > 0:38:12so I know a little bit about researching properties and prices
0:38:12 > 0:38:16- and what to look for, tell-tale signs.- So tell me your background?
0:38:16 > 0:38:21Er, well not an estate agent anymore. I'm currently doing supply teaching,
0:38:21 > 0:38:24- I'm a qualified business and IT teacher.- Yeah.
0:38:24 > 0:38:29At the moment, there aren't any jobs that are within the area, that I'm looking for,
0:38:29 > 0:38:33so myself and my partner have a little bit of money
0:38:33 > 0:38:36which we put into getting this property
0:38:36 > 0:38:40and... branching out into a different way.
0:38:42 > 0:38:45'James planned to purchase with the help of a mortgage,
0:38:45 > 0:38:48'but almost disastrously, it was withdrawn.
0:38:48 > 0:38:51'Mortgage companies can refuse to lend on a property
0:38:51 > 0:38:55'if a vendor has owned it for less than six months, as was the case here.
0:38:55 > 0:39:01'This was introduced to stop speculators flipping properties at inflated prices.
0:39:01 > 0:39:05'So James was caught out by not reading the small print.
0:39:05 > 0:39:09'Fortunately, members of his family stepped in to cover the shortfall.
0:39:09 > 0:39:14'But this does mean that he needs to sell in order to repay the loans.'
0:39:15 > 0:39:19What's worrying you most about having bought this at auction?
0:39:19 > 0:39:25Erm... That we're able to sell the property, I think. I think that's the key.
0:39:25 > 0:39:32I think the key is making sure that we can get some sort of a mark up on what we've originally sold.
0:39:32 > 0:39:35The rental side at this stage is not an option.
0:39:35 > 0:39:40My only worry would be the market at the moment is very wobbly
0:39:40 > 0:39:43- in terms of people getting finance, getting mortgages.- Yeah.
0:39:43 > 0:39:46Is it going to be a first-time buyer looking for something like this?
0:39:46 > 0:39:49I'm hoping with the quality of finish that we can get on the property
0:39:49 > 0:39:52and the fact that we're not going to over-inflate the value of the property,
0:39:52 > 0:39:55that we ideally would get somebody like a first-time buyer
0:39:55 > 0:39:58who'd come in and take it straight away.
0:39:58 > 0:40:00So what can you do to get that,
0:40:00 > 0:40:03to really make the person who buys this want it
0:40:03 > 0:40:07and make this the best house out of all the others that are on the market?
0:40:07 > 0:40:09I think it's the fine touches that you do around the property.
0:40:09 > 0:40:12It's the edgings around kitchen seals,
0:40:12 > 0:40:15it's, erm, plastering corners,
0:40:15 > 0:40:20it's looking at how, when tiles are put on, that they're level,
0:40:20 > 0:40:23and all the grouting is done correctly, that all the fine points are done,
0:40:23 > 0:40:26because whenever I've looked at properties previously,
0:40:26 > 0:40:29it's those little bits that make the difference, the finishing touches.
0:40:29 > 0:40:36- So good quality craftsmanship... - I'm hoping so.- ..coming your way. - Watch this space.- Yeah!
0:40:38 > 0:40:42'The wow factor he desires usually requires splashing the cash.
0:40:42 > 0:40:45'But with the potential profit margins here already tight,
0:40:45 > 0:40:48'how's he going to achieve this?'
0:40:48 > 0:40:51So what sort of budget have you got in mind for this house?
0:40:51 > 0:40:55At the moment, having another look around,
0:40:55 > 0:40:58we're probably going to be looking at somewhere between £5,000 and £7,000.
0:40:58 > 0:41:04- That's a fairly low budget. Are you going to be doing quite a lot of the work yourself?- I am. Yes.
0:41:04 > 0:41:08I've worked on a number of other properties previously,
0:41:08 > 0:41:11my father also has a number of properties,
0:41:11 > 0:41:15so I've worked, done piecemeal stuff for him, I've worked on my own properties.
0:41:15 > 0:41:18The idea is that I'll do most of the plastering,
0:41:18 > 0:41:21put the kitchen in, the bathroom I shall do myself.
0:41:21 > 0:41:24- What's your timeframe? - Six to eight weeks.
0:41:24 > 0:41:28Now, again, six to eight weeks, quite a small budget,
0:41:28 > 0:41:30do you think you'll be able to get it done in that time?
0:41:30 > 0:41:33- Yeah, I think so. I do. - James, it's been lovely meeting you.
0:41:33 > 0:41:36- Good luck with this.- Thank you.
0:41:36 > 0:41:38And I hope you do get the sale that you guys need.
0:41:38 > 0:41:41- Congratulations.- Cheers. Thank you.
0:41:43 > 0:41:47It just goes to show that with all James's knowledge and research,
0:41:47 > 0:41:50you can still get your fingers burned.
0:41:50 > 0:41:53You literally cannot afford to leave any stone unturned.
0:41:53 > 0:41:57Luckily for James, he managed to get the cash together to buy this.
0:41:57 > 0:42:02The question is now, will he secure a buyer or will he be forced to rent this?
0:42:02 > 0:42:05You can find out later on in the show.
0:42:08 > 0:42:12Well, time and tide wait for no-one.
0:42:12 > 0:42:15And in the property world, time usually means money.
0:42:15 > 0:42:20So let's go back and see if that time and money has been well spent.
0:42:22 > 0:42:26'Now back to Mitcham in Surrey to catch up with Kesh.
0:42:26 > 0:42:32'He's a property developer who picked up this three-bedroom terraced house for £196,000.'
0:42:33 > 0:42:36So how desperately did you want this house?
0:42:36 > 0:42:38Well, I'd done the research, I'm a local boy.
0:42:38 > 0:42:42Been here over 20 years in the area, my parents live down the road.
0:42:42 > 0:42:45The transport links are good. And I know what the ceiling prices are.
0:42:45 > 0:42:49I know a lot of the agents in the area, so I've done my research thoroughly.
0:42:49 > 0:42:53'Kesh had budgeted up to £35,000
0:42:53 > 0:42:56'and had an eight-week schedule to transform this property.
0:42:56 > 0:43:01'But he's beaten his own target. So we're back only seven weeks later.
0:43:01 > 0:43:04'Has Kesh taken this tired and tatty place
0:43:04 > 0:43:08'and given it a modern, sleek and stylish makeover?
0:43:08 > 0:43:10'Let's find out.'
0:43:10 > 0:43:14# Make me over, make me over, make me over, make me over, make me over
0:43:14 > 0:43:16# Totally make me over again
0:43:16 > 0:43:19# Make me over
0:43:19 > 0:43:21# Make me over
0:43:21 > 0:43:23- # I want to be made over - # I want to be made over
0:43:23 > 0:43:26# So make me over, ah-ah
0:43:26 > 0:43:30- # Make me over - # Make me over, yeah
0:43:30 > 0:43:33# I want to be made over, so make me over
0:43:33 > 0:43:35# Break it down
0:43:36 > 0:43:39'As you can see, every room in the house
0:43:39 > 0:43:43'has been stripped, skimmed, redecorated and modernised.
0:43:43 > 0:43:46'The biggest change is downstairs in the kitchen,
0:43:46 > 0:43:49'where Kesh has knocked down the wall and opened it up
0:43:49 > 0:43:54'into this great, new, open-plan kitchen-dining area.'
0:43:55 > 0:43:59By removing the wall downstairs, I think it's made it feel a lot more spacious.
0:43:59 > 0:44:02The kitchen and dining area interact a lot better.
0:44:02 > 0:44:08In general, the space, it makes it feel a lot bigger than it actually was,
0:44:08 > 0:44:12with the wall being there, which was a non-supporting wall.
0:44:12 > 0:44:16It had no bearing on it so it was a simple enough process to remove.
0:44:16 > 0:44:19And we were already re-rendering and rewiring,
0:44:19 > 0:44:22so it was a simple enough job to do.
0:44:22 > 0:44:24'When it came to fixtures and fittings,
0:44:24 > 0:44:27'Kesh didn't skimp on expense.'
0:44:28 > 0:44:31It's better in the sense of the quality.
0:44:31 > 0:44:36We've gone with the minor details like slow closes, nice gloss finish, as opposed to a matt finish.
0:44:36 > 0:44:39The gloss finish really gives it the class, as well.
0:44:39 > 0:44:43'The other major change has been upstairs in the bathroom.
0:44:43 > 0:44:47'Kesh removed the old boiler and put in a modern shower unit.
0:44:47 > 0:44:49'He replaced the rest of the bathroom suite too, of course,
0:44:49 > 0:44:52'to bring it bang up to date.'
0:44:53 > 0:44:55# This is the modern way
0:44:56 > 0:45:00# Faking it every day
0:45:00 > 0:45:02# This is the modern way
0:45:02 > 0:45:07Having a shower and a bath, which is a major must these days,
0:45:07 > 0:45:09because, you know, for the general commuter these days
0:45:09 > 0:45:13they just want to get into a shower and rush out of the door.
0:45:13 > 0:45:15Whereas maybe on the weekends, you want to have a soak.
0:45:15 > 0:45:18So in this place, once again, we've had both,
0:45:18 > 0:45:22so it doesn't take anyone out of the picture when they're looking for a property.
0:45:24 > 0:45:29'Kesh got a team of builders in to do all the work and they've done a fantastic job.
0:45:29 > 0:45:34'They've even completed the renovation ahead of the original eight-week target.'
0:45:35 > 0:45:42I think we've taken around six and a half weeks from start to finish to complete the job.
0:45:42 > 0:45:44'Well within his timescale,then.
0:45:44 > 0:45:47'But what about his £35,000 budget?
0:45:47 > 0:45:50'The spec on this property is pretty high,
0:45:50 > 0:45:52'so what did he spend here?'
0:45:55 > 0:45:58I think we will be coming in at around the £32,000 mark,
0:45:58 > 0:46:02including closing costs of solicitors and agent fees.
0:46:02 > 0:46:07So we should have a good exit and save a few thousand pounds, as well, in the process.
0:46:07 > 0:46:10'You really can't ask for more than that.
0:46:10 > 0:46:12'Under budget and ahead of schedule? Ooh!
0:46:12 > 0:46:16'So it looks like Kesh's meticulous research has paid off
0:46:16 > 0:46:18'when it comes to builders and materials.
0:46:18 > 0:46:21'The result is certainly impressive.
0:46:21 > 0:46:24'But will his high standards mean a high return?
0:46:24 > 0:46:28'Bear in mind, any valuation over £250,000
0:46:28 > 0:46:33'takes him above the three percent stamp-duty threshold, which may deter buyers.
0:46:37 > 0:46:40'We asked two local property experts for their thoughts.'
0:46:42 > 0:46:44My first impression on entering the property
0:46:44 > 0:46:47is that, yes, they've done very good work in the property,
0:46:47 > 0:46:50the finishing is very good, they've used every available space,
0:46:50 > 0:46:53they've used quality material. It's a job properly done.
0:46:53 > 0:46:55An excellent transformation.
0:46:55 > 0:46:58The property has been completely refurbished.
0:46:58 > 0:47:00Nice and neutral in white throughout.
0:47:00 > 0:47:03Erm, you know, it's looking very good.
0:47:03 > 0:47:05The sun is shining, the property is shining, too.
0:47:05 > 0:47:09It's got a lovely family bathroom, which is situated upstairs.
0:47:09 > 0:47:12The kitchen has been knocked into a massive room,
0:47:12 > 0:47:14which is good for a big-sized family.
0:47:16 > 0:47:20'So the experts are impressed with the stylish new look.
0:47:20 > 0:47:24'Kesh purchased the property for £196,000
0:47:24 > 0:47:28'and spent 32 grand on the renovation,
0:47:28 > 0:47:32'making his total investment here £228,000.
0:47:32 > 0:47:36'He's already put the house up for sale and had viewings.
0:47:36 > 0:47:41'So let's find out how much the estate agents believe it's worth,
0:47:41 > 0:47:44'and if that matches Kesh's sale price.'
0:47:44 > 0:47:51If the property is put on the market for sale, we'd be looking to achieve between £268,000 and £273,000.
0:47:51 > 0:47:56We would expect the property to achieve £250,000 and above.
0:47:56 > 0:48:00Because in certain circumstances, people are paying above stamp duty.
0:48:00 > 0:48:06So we'd market the property around £280,000, £285,000
0:48:06 > 0:48:10and then be flexible on the offers one takes.
0:48:10 > 0:48:15'Those valuations, if achieved, would give Kesh a gross profit
0:48:15 > 0:48:18'of between £40,000 and £57,000.
0:48:18 > 0:48:23'But he's actually marketing the property at 284 grand.'
0:48:23 > 0:48:28I think that seems like a very big margin, but we've done our research
0:48:28 > 0:48:30and we've seen properties in that region
0:48:30 > 0:48:34that have sold yards away for around the 275 mark,
0:48:34 > 0:48:37so I think we're priced well, because they required work.
0:48:37 > 0:48:42This one is ready for a family to move into and get going. There's nothing to do.
0:48:42 > 0:48:47'It sounds like Kesh is content to stick to his original selling price.
0:48:47 > 0:48:49'And if he does sell for that,
0:48:49 > 0:48:52'he'll have certainly made a great little profit here.
0:48:52 > 0:48:56'So is he happy to have branched out on his own as a developer,
0:48:56 > 0:48:59'after years of working for someone else?'
0:48:59 > 0:49:03I enjoy it fully, working with people and seeing the end goal,
0:49:03 > 0:49:05and that's what keeps me going.
0:49:12 > 0:49:16'Let's make our way back to this three-bedroom mid-terrace in Wolverhampton
0:49:16 > 0:49:21'that had a guide price of between £45,000 and £49,000.
0:49:21 > 0:49:24'It was bought by supply teacher James
0:49:24 > 0:49:29'with his first and only ever bid at auction for 51 grand.
0:49:32 > 0:49:35'The profit margins on this development would be tight.
0:49:35 > 0:49:40'The local rental market is buoyant, but James has to sell the house on
0:49:40 > 0:49:44in order to repay his family, who've invested in this project.
0:49:47 > 0:49:50'So how would James ensure the property was snapped up
0:49:50 > 0:49:52'when it was put up for sale?'
0:49:52 > 0:49:56So what can you do to make this the best house out of all the others that are on the market?
0:49:56 > 0:49:59I think it's the fine touches you do around the property,
0:49:59 > 0:50:03because whenever I've looked at properties, it's the finishing touches that make the difference.
0:50:03 > 0:50:06- So good quality craftsmanship. - I'm hoping so.
0:50:09 > 0:50:14'The pressure was on as James would be doing most of the work by himself.
0:50:14 > 0:50:17'So I'm expecting those finishing touches to be fantastic.
0:50:17 > 0:50:20'He'd given himself a maximum of eight weeks
0:50:20 > 0:50:22'to have the renovation complete.
0:50:24 > 0:50:28'Just over four months later, we're back.'
0:50:29 > 0:50:34# You say if you try to put the finishing touches on me
0:50:39 > 0:50:42'The finishing touches will have to wait,
0:50:42 > 0:50:44'but the finish line is fast approaching.
0:50:44 > 0:50:47'I can see James has made great progress.
0:50:47 > 0:50:50'But maybe just a smidgen slower than he'd hoped.
0:50:50 > 0:50:53'Was his eight-week target a misjudgement?'
0:50:55 > 0:50:58That's really just a case of first-time blues.
0:50:58 > 0:51:01Clearly doing it by myself, that was not going to happen.
0:51:01 > 0:51:04In the last few days we've done 12-hour days.
0:51:04 > 0:51:08When we first started it was four, five, six hours a day.
0:51:08 > 0:51:12So it's a very steep learning curve.
0:51:13 > 0:51:17'I can tell the kitchen will look fantastic when it's complete.
0:51:17 > 0:51:21'And James had done a great job of fitting it all by himself.
0:51:24 > 0:51:29'And upstairs in the bathroom, James has chosen a cool and contemporary look.
0:51:34 > 0:51:39'An attractive kitchen and stylish bathroom are real selling points.
0:51:39 > 0:51:42'But I do hope James is keeping an eye on costs.'
0:51:42 > 0:51:45Ultimately we've got to drive a balance between
0:51:45 > 0:51:48looking good but also being cost effective, as well.
0:51:48 > 0:51:51I've got a good friend who has done a number of properties like this.
0:51:51 > 0:51:57And his utmost, or his key bit of information or advice was
0:51:57 > 0:51:59don't get too personal.
0:51:59 > 0:52:02And I found myself several times thinking, "I'd just like to do that,"
0:52:02 > 0:52:04but then every time you think about that,
0:52:04 > 0:52:06it's eating into margins.
0:52:10 > 0:52:13'In order to maintain a healthy profit margin,
0:52:13 > 0:52:16'James has put his own renovation skills to good use,
0:52:16 > 0:52:20'including plastering all the walls and ceilings in the bedrooms.
0:52:20 > 0:52:24'But he was able to call in the services of two little helpers,
0:52:24 > 0:52:28'his sons Dominic and William, while they were on school holidays.'
0:52:28 > 0:52:31# He's a chip off the old block
0:52:31 > 0:52:36At times it's been great fun. They've been learning how to paint properly,
0:52:36 > 0:52:40they've learnt how to do dry-wall skimming.
0:52:40 > 0:52:44They've also frustrated me
0:52:44 > 0:52:47and they've been, "Dad, can we have this? Dad, can we do this?"
0:52:47 > 0:52:51And I'm sort of stuck up a ladder plastering a ceiling or something like that.
0:52:51 > 0:52:55So it's been good fun. It's also been hard work.
0:52:56 > 0:53:00'What has William enjoyed the most about helping his dad?'
0:53:01 > 0:53:05I like the painting because...
0:53:05 > 0:53:09..because it makes the house look nice.
0:53:09 > 0:53:12'And big brother Dominic?'
0:53:12 > 0:53:16I really like the stripping because when you get a big bit
0:53:16 > 0:53:20and it's all watery, you get to peel it off.
0:53:20 > 0:53:24'Ooh, yeah! Let's hope the extra pocket money the kids are earning
0:53:24 > 0:53:29'hasn't caused James to exceed his budget of between £5,000 and £7,000.'
0:53:31 > 0:53:34Budget-wise, we're currently looking at about
0:53:34 > 0:53:38just over seven and a half, about £7,600 at the moment.
0:53:38 > 0:53:45'Adding that spend of around £7,500 to the purchase price of 51 grand
0:53:45 > 0:53:50'gives James a total investment of around £58,500.
0:53:53 > 0:53:56'We invited two local estate agents
0:53:56 > 0:53:58to give us their opinion on James's,
0:53:58 > 0:54:01'and of course, Dominic and William's handiwork.'
0:54:01 > 0:54:07Since I last came, he's started to do the refurbishments quite well.
0:54:07 > 0:54:09They're not finished, as you can see at the moment,
0:54:09 > 0:54:12but what he's done so far is quite good.
0:54:12 > 0:54:15The owner has done it to quite a high standard so far,
0:54:15 > 0:54:18nice neutral colours throughout, neutral carpets,
0:54:18 > 0:54:21and a nice white suite upstairs.
0:54:21 > 0:54:23So it is coming along. It looks quite nice at the moment.
0:54:25 > 0:54:30'The estate agents believe the local rental market is stronger than the sales market.
0:54:30 > 0:54:34'So let's find out how much they believe this property could be let for.'
0:54:34 > 0:54:38Once the property has been refurbished and completed,
0:54:38 > 0:54:43the local rental market would probably be
0:54:43 > 0:54:47somewhere between £400 and £450 per calendar month.
0:54:47 > 0:54:50If the owner finishes the property to the same standard he's doing now,
0:54:50 > 0:54:54I'd look to achieve between £475 per calendar month
0:54:54 > 0:54:57to £495 per calendar month.
0:54:57 > 0:55:00'Those figures would give James a rental yield
0:55:00 > 0:55:04'of between eight and ten and a half percent. Not too bad at all.
0:55:04 > 0:55:08'But he has to sell the property to pay back his investors,
0:55:08 > 0:55:11'and, of course, release the equity for his next project.'
0:55:13 > 0:55:16I think we have too much money tied up in the property, to be honest.
0:55:16 > 0:55:18The rental is not an option at this stage.
0:55:18 > 0:55:22'How much do the estate agents believe this place could sell for,
0:55:22 > 0:55:25'bearing in mind James's total investment so far
0:55:25 > 0:55:28'of around £58,500?'
0:55:30 > 0:55:33Once the property has been fully renovated,
0:55:33 > 0:55:38I would expect to achieve a figure somewhere between £70,000 and £75,000.
0:55:38 > 0:55:41Once the property is finished, I would be looking to market this
0:55:41 > 0:55:44at between £75,000 to £80,000.
0:55:44 > 0:55:48'If achieved, those valuations would give James a pre-tax profit
0:55:48 > 0:55:54'of between £12,000 and £22,000, minus the usual selling expenses.
0:55:54 > 0:55:59'But he's done his research and believes he can get a little more.'
0:55:59 > 0:56:04I know that a three-bed semi just round the corner on the same estate
0:56:04 > 0:56:07recently sold for 95 and needed some work doing to it.
0:56:07 > 0:56:10I also know that another terraced property
0:56:10 > 0:56:13has recently sold for 85 in the area, as well.
0:56:13 > 0:56:17So I think for something like this, that's fully done up...
0:56:17 > 0:56:20Who knows, maybe I'm wrong.
0:56:23 > 0:56:28'So has James enjoyed his first attempt at property developing?'
0:56:29 > 0:56:33Yeah. I think I've learnt a little bit more about what hours to work,
0:56:33 > 0:56:36how to not be too personal,
0:56:36 > 0:56:39but absolutely, yes. Thoroughly enjoyed it.
0:56:41 > 0:56:45Martin and I hope you've enjoyed watching today's property portfolio.
0:56:45 > 0:56:48Yes, and join us next time for more brave buyers
0:56:48 > 0:56:51- on Homes Under The Hammer. - Goodbye.- Goodbye.
0:56:51 > 0:56:55Subtitles by Red Bee Media Ltd
0:56:55 > 0:56:55.