0:00:02 > 0:00:05Despite the credit crunch people want to grab some property action.
0:00:05 > 0:00:06And if you want to take the plunge,
0:00:06 > 0:00:08auctions are a great place to start.
0:00:08 > 0:00:10Yes, it's fast, it's frantic,
0:00:10 > 0:00:14but it can be great fun buying your home under the hammer.
0:00:39 > 0:00:43Some properties are very popular at auction, others go unsold.
0:00:43 > 0:00:46So the auction room can be a difficult place to conquer.
0:00:46 > 0:00:48Let's take a look at the lots that won
0:00:48 > 0:00:52the hearts of our buyers on today's programme.
0:00:53 > 0:00:55In Cornwall I find a property
0:00:55 > 0:00:58where it's difficult to hide things behind closed doors.
0:00:59 > 0:01:02What do you suppose that's all about?
0:01:03 > 0:01:06This terraced house in Kent could well be a difficult proposition.
0:01:06 > 0:01:11And you are still only left with just a two-bedroom house.
0:01:13 > 0:01:16In County Durham, I take a look at this ex-holiday home
0:01:16 > 0:01:19in search of a diamond in the coal dust.
0:01:19 > 0:01:21That's got to be worth a look.
0:01:24 > 0:01:26All these properties are being sold at auction.
0:01:26 > 0:01:29We find out who bought them and what they paid for them
0:01:29 > 0:01:31when they went under the hammer.
0:01:31 > 0:01:32Well done, good bid.
0:01:35 > 0:01:39Well, this glorious spot is Mousehole in Cornwall.
0:01:39 > 0:01:44A former fishing port, it's now more a popular tourist destination.
0:01:44 > 0:01:46And you can see why!
0:01:52 > 0:01:56It's also a sought-after place for people owning holiday lets
0:01:56 > 0:01:57and second homes.
0:01:57 > 0:02:01In fact, over half the houses in Mousehole are used in that way.
0:02:04 > 0:02:06Well, just a mile from Mousehole
0:02:06 > 0:02:10and two miles from Penzance is the village of Paul.
0:02:10 > 0:02:13It's unclear who or what the village was named after,
0:02:13 > 0:02:14but who cares anyway.
0:02:14 > 0:02:16The property I'm here to see sounds very interesting,
0:02:16 > 0:02:19had a guide price of 150,000 quid.
0:02:19 > 0:02:20Let's take a look.
0:02:21 > 0:02:24# Back to front Front to back
0:02:24 > 0:02:27# Will you come backwards with me?
0:02:27 > 0:02:29# Backwards with me? #
0:02:29 > 0:02:31Well, it's an interesting set-up.
0:02:31 > 0:02:34There are rows of cottages and some of their front doors
0:02:34 > 0:02:39are on this side but the front door I want is on the other side.
0:02:39 > 0:02:42So does that make this the front or the back garden?
0:02:44 > 0:02:46So what's on offer?
0:02:47 > 0:02:49Oh, wow!
0:02:49 > 0:02:52Well, you hope you might find something like that
0:02:52 > 0:02:56when you come into a property like this, but THAT is extraordinary!
0:02:56 > 0:02:59What an amazing inglenook fireplace
0:02:59 > 0:03:02and just that single piece of granite on the top there -
0:03:02 > 0:03:04really want to make a feature of that, obviously.
0:03:04 > 0:03:07But here's a feature that isn't quite so appealing.
0:03:10 > 0:03:12What do you suppose that's all about?!
0:03:12 > 0:03:14Don't worry,
0:03:14 > 0:03:17I don't think that's going to be too much of an issue to take that out.
0:03:17 > 0:03:20Basically, you've got your front living room here
0:03:20 > 0:03:22with that amazing fireplace, then through to
0:03:22 > 0:03:24what was I imagine the kitchen at one point,
0:03:24 > 0:03:25though it's lacking in units.
0:03:25 > 0:03:28There is this sink unit but that's it, basically,
0:03:28 > 0:03:31apart from that.
0:03:31 > 0:03:34Not a bad space though and the nice thing is, straight away,
0:03:34 > 0:03:37not a head height problem, cos often with cottages like this
0:03:37 > 0:03:39you might find it's a little bit cramped but the fact that
0:03:39 > 0:03:42you've got lots of windows, not too low a ceiling
0:03:42 > 0:03:45and that amazing fireplace - I'm already liking it.
0:03:45 > 0:03:47# I like it
0:03:47 > 0:03:50# I like it!
0:03:50 > 0:03:52# I like it... #
0:03:52 > 0:03:55Well, that was until I saw the bathroom.
0:03:55 > 0:03:59It's downstairs which is never ideal and is also on the tight side
0:03:59 > 0:04:03with that wooden cladding making it feel even smaller.
0:04:03 > 0:04:06So, what's in store as I venture upstairs?
0:04:06 > 0:04:10Upstairs a bit of a surprise!
0:04:10 > 0:04:12This cottage is turning out to be quite unusual
0:04:12 > 0:04:14cos you're expecting small, cramped rooms.
0:04:14 > 0:04:18That bedroom certainly is, that bedroom - not so bad.
0:04:18 > 0:04:21But wait until you see the master.
0:04:21 > 0:04:23It really is quite spectacular!
0:04:23 > 0:04:24Look at this!
0:04:24 > 0:04:27This is the top end of that inglenook fireplace,
0:04:27 > 0:04:29but what a feature.
0:04:29 > 0:04:31And all this stonework that's been revealed.
0:04:31 > 0:04:33I wonder if you can even take off the ceiling
0:04:33 > 0:04:36to make that completely vaulted.
0:04:36 > 0:04:38What a fantastic room.
0:04:38 > 0:04:41It's also benefiting from the views out to the sea.
0:04:41 > 0:04:44So, all in all, what a surprise this place is!
0:04:47 > 0:04:49# I like it, I like it! #
0:04:49 > 0:04:52What would you want to do with this place?
0:04:52 > 0:04:55Well, you could move the bathroom upstairs
0:04:55 > 0:04:57but of course you'd lose a bedroom.
0:04:57 > 0:05:00I think the most important thing here is to keep the character,
0:05:00 > 0:05:03and it's certainly got plenty of that.
0:05:06 > 0:05:09Well, at the front of the property a real surprise -
0:05:09 > 0:05:12a huge garden with views out to the sea,
0:05:12 > 0:05:18and it gets better because there's also this half-built garage.
0:05:18 > 0:05:20Actually it's more than a garage, it's a HUGE space,
0:05:20 > 0:05:23more than a double garage even, so if you're into collecting junk
0:05:23 > 0:05:26or restoring cars or motorbikes - fantastic thing to have.
0:05:26 > 0:05:28Though you clearly need to check that planning permission
0:05:28 > 0:05:31was obtained to have this built but on the assumption that it was,
0:05:31 > 0:05:33it needs a bit of finishing off
0:05:33 > 0:05:35then you've got yourself a great added thing here.
0:05:35 > 0:05:37So, cottage itself not that huge,
0:05:37 > 0:05:41space around it...phwoa...wonderful!
0:05:41 > 0:05:45# Space... Give me some space...#
0:05:45 > 0:05:49So a small property but lots of potential outside,
0:05:49 > 0:05:51all for a guide price
0:05:51 > 0:05:53of £150,000 at auction.
0:05:55 > 0:05:57We asked a local estate agent
0:05:57 > 0:05:59for his opinion of this lovely Cornwall cottage.
0:06:01 > 0:06:06'This probably was a farm worker's cottage at one stage
0:06:06 > 0:06:09'and to be fair, it is quite common'
0:06:09 > 0:06:11to have gardens front and back
0:06:11 > 0:06:14where neighbours sort of have a right of way, etc.
0:06:14 > 0:06:17'It is unusual for a cottage of this size to have such a big garden
0:06:17 > 0:06:21'and it really will be an added benefit to the property.'
0:06:23 > 0:06:26Would it be worth relocating that downstairs bathroom?
0:06:26 > 0:06:30Personally, I would lose one of the bedrooms upstairs
0:06:30 > 0:06:32and take the bathroom upstairs.
0:06:32 > 0:06:37OK, you will lose a bedroom, but I think it will be easier to sell
0:06:37 > 0:06:41in the future and also it would give you more space downstairs.
0:06:42 > 0:06:47What could the resale value of the place be once renovated?
0:06:50 > 0:06:53When the property's been renovated to a decent standard, I feel
0:06:53 > 0:06:59the value of this property will be in the region of £220-£230,000.
0:07:01 > 0:07:03And the potential rental income?
0:07:04 > 0:07:09I feel the rental value will be £700-£750 per calendar month.
0:07:12 > 0:07:14Well, if it's character you're after,
0:07:14 > 0:07:16you can't go far wrong with this place.
0:07:16 > 0:07:20The only problem I see is that this kind of property
0:07:20 > 0:07:23does tend to attract a lot of interest at the auctions
0:07:23 > 0:07:25and that pushes up the price.
0:07:25 > 0:07:28So let's see what happened when it went under the hammer.
0:07:30 > 0:07:34This is a cottage in a glorious position,
0:07:34 > 0:07:38great views from the first floor to the coast.
0:07:38 > 0:07:41May I say 120? 120 yes, I'm bid.
0:07:41 > 0:07:43May I say 130?
0:07:43 > 0:07:46130? £130,000, I'm bid.
0:07:46 > 0:07:47Is there 140?
0:07:47 > 0:07:50Yes, £140,000 I'm bid.
0:07:50 > 0:07:51150 I'm bid.
0:07:51 > 0:07:53May I say 160?
0:07:53 > 0:07:57I'll take five if it helps. At £150,000.
0:07:57 > 0:07:58May I say 155?
0:07:58 > 0:08:01£155,000, I'm bid.
0:08:01 > 0:08:04£155,000. May I say 160?
0:08:04 > 0:08:07I'll take £2,500 if it helps?
0:08:07 > 0:08:12Got £155,000. Is there £157,500 in the room?
0:08:12 > 0:08:19157,500. 157,500. 160? Is that 159? 159, I'm bid.
0:08:19 > 0:08:23£159,000. 160, madam, thank you.
0:08:23 > 0:08:26At £160,000 right at the back of the room.
0:08:26 > 0:08:32The property's on the market and going to be sold at 160. At £160,000 for the first time,
0:08:32 > 0:08:35£160,000 for the second time.
0:08:35 > 0:08:38£160,000, is there a one anywhere in the room?
0:08:38 > 0:08:40At £160,000...
0:08:40 > 0:08:44Thank you, madam, it's yours at £160,000.
0:08:44 > 0:08:49It was Leanne who made the successful bid of £160,000.
0:08:49 > 0:08:52She's a scientist with a PhD in stem cell research.
0:08:52 > 0:08:56Originally from Cornwall, she's purchased the cottage
0:08:56 > 0:09:00with her partner Ben, and the couple plan to make this their new home.
0:09:00 > 0:09:03I met Leanne back there to find out more.
0:09:03 > 0:09:05Leanne, lovely to meet you. Congratulations.
0:09:05 > 0:09:07Tell me why you wanted to buy this lovely place.
0:09:07 > 0:09:11Um, well, myself and my partner have been looking for a long time.
0:09:11 > 0:09:14Both grew up in the area, been away to study and work.
0:09:14 > 0:09:16We've gone to a couple of auctions
0:09:16 > 0:09:20and done a couple of other sales and not been quite successful.
0:09:20 > 0:09:24We just love the stone cottage, the older style rather than the new,
0:09:24 > 0:09:28so we saw this one, it came up at auction and we just went for it
0:09:28 > 0:09:31and obviously it all worked out and meant to be so, yeah!
0:09:31 > 0:09:34Just all the features and the general appeal,
0:09:34 > 0:09:40plus the outside space is great for us cos we've got a few additions!
0:09:40 > 0:09:44We've got two dogs and we've got chickens and ducks
0:09:44 > 0:09:45so we need a bit of space!
0:09:45 > 0:09:49Plus my partner is very much into car restoration so that garage
0:09:49 > 0:09:51is a big bonus for him.
0:09:51 > 0:09:54He likes his work.
0:09:54 > 0:09:56So, where are you living at the moment?
0:09:56 > 0:10:00We are living with Ben's parents at the moment,
0:10:00 > 0:10:01we've lived with them for about 3½ years
0:10:01 > 0:10:03since we moved down from Leicester,
0:10:03 > 0:10:06since I finished work up there and study,
0:10:06 > 0:10:08and we're living in a caravan in the garden so...
0:10:08 > 0:10:09A caravan(?)
0:10:09 > 0:10:12So we're quite excited to have our own property, so yeah,
0:10:12 > 0:10:15we can't wait.
0:10:15 > 0:10:17What was it then about this place that you loved so much?
0:10:17 > 0:10:20Initially, it was obviously the price,
0:10:20 > 0:10:22the fact that it had quite a low guide price,
0:10:22 > 0:10:25and just looking at that, really.
0:10:25 > 0:10:30And just the views, the area - we're both local, we love the area,
0:10:30 > 0:10:33we definitely just wanted to be in Cornwall.
0:10:33 > 0:10:36Leanne and Ben have found just what they're looking for -
0:10:36 > 0:10:39an old stone cottage with sea views and a large garden.
0:10:41 > 0:10:44So they've accomplished the first stage of their plan
0:10:44 > 0:10:48by being successful at auction but now comes the hard work.
0:10:50 > 0:10:53OK, so tell me what you're going to do to sort this place out.
0:10:53 > 0:10:55Initially, the thing that we'll be starting straight away
0:10:55 > 0:10:57will be to completely gut the property,
0:10:57 > 0:11:00the walls upstairs are all stud walls - those will all come out.
0:11:00 > 0:11:03This area will all be gutted, the kitchen area
0:11:03 > 0:11:08and once we've got the bare skin we'll actually work out a layout.
0:11:08 > 0:11:11So you're going to take everything out and then decide what to do.
0:11:11 > 0:11:14Yeah, once we can say, "This is where the kitchen will go,
0:11:14 > 0:11:15"this is how much space we've got,"
0:11:15 > 0:11:17and just kind of walk it out in our heads.
0:11:17 > 0:11:22So what about if you have to put walls back that you've take out?
0:11:22 > 0:11:24Well, they're only partition walls upstairs
0:11:24 > 0:11:27and I think we'd like to change the layout so the whole point
0:11:27 > 0:11:30is that, I mean, down here there's not too much that we can change,
0:11:30 > 0:11:35there's an RSJ above us supporting so there's not too much we can change,
0:11:35 > 0:11:39but upstairs it's quite a blank canvas if we take the walls out.
0:11:39 > 0:11:42What about down here then with this AMAZING fireplace?
0:11:42 > 0:11:44Yeah, it's certainly one of the best features.
0:11:44 > 0:11:47I mean, it has got a lot of really nice features, this property,
0:11:47 > 0:11:48so we're really excited about
0:11:48 > 0:11:51probably uncovering more of them as we go along
0:11:51 > 0:11:53and this fireplace is the major one.
0:11:53 > 0:11:56So definitely the first thing this week
0:11:56 > 0:11:59is we're going to get a log burning stove in here.
0:11:59 > 0:12:01We've already ordered the flue liner and we'll do the chimney,
0:12:01 > 0:12:06then literally what we can do is, as were demolishing,
0:12:06 > 0:12:09we can burn at the same time and dry the place out and get it all sorted.
0:12:09 > 0:12:13- That's a good idea!- Keep us warm while we're working! Yes.
0:12:13 > 0:12:16# By the fireside
0:12:16 > 0:12:18# With you... #
0:12:18 > 0:12:22It's certainly a practical idea and I think a log burner
0:12:22 > 0:12:26will sit really well in that great fireplace.
0:12:26 > 0:12:28So who's going to do the work?
0:12:28 > 0:12:3190% of it will be myself and my partner Ben.
0:12:31 > 0:12:33His background is IT but he is sort of...
0:12:33 > 0:12:35In Cornwall you have to multi-task
0:12:35 > 0:12:38so he's done a lot of building, started off as a labourer
0:12:38 > 0:12:42and then he actually project-managed a really big bungalow renovation
0:12:42 > 0:12:46last year and done contract work for a conservatory company
0:12:46 > 0:12:49so he's really got a building background so he'll do most of it.
0:12:49 > 0:12:51I'll be doing as I'm told!
0:12:51 > 0:12:54And we have got a really good support network of friends
0:12:54 > 0:12:57who are builders, quantity surveyors, etc.
0:12:57 > 0:13:01So it will be a little bit of extra labour as and when needed
0:13:01 > 0:13:04- but on the whole it'll be us. - And what's your background?
0:13:04 > 0:13:08My background is that I have a degree in animal science
0:13:08 > 0:13:11and then a PhD in cancer studies and molecular medicine.
0:13:11 > 0:13:13Wow!
0:13:19 > 0:13:21Depending on what they decide to do,
0:13:21 > 0:13:25Leanne and Ben have set a budget of between £35 and £50,000
0:13:25 > 0:13:28to get the place up and running.
0:13:28 > 0:13:30Obviously there's a lot to do outside
0:13:30 > 0:13:33so it's quite a project they've taken on here.
0:13:33 > 0:13:35So what's the timescale for the work?
0:13:35 > 0:13:38I think the inside will definitely be six months
0:13:38 > 0:13:41and it'll all be fine, but I think for the outside as well,
0:13:41 > 0:13:44for everything to be finished we're looking at a nine-month project.
0:13:44 > 0:13:47Well, listen, congratulations, I'm glad you found your great home.
0:13:47 > 0:13:49- Thank you.- I look forward to seeing how you get on.
0:13:49 > 0:13:51- Yeah, thank you.- Well done.- Thanks.
0:13:51 > 0:13:54Well, it sounds like Leanne and partner Ben
0:13:54 > 0:13:56have found their ideal property here
0:13:56 > 0:13:59and it's certainly better than the caravan they've been living in.
0:13:59 > 0:14:01Somewhere for the ducks and the chickens,
0:14:01 > 0:14:05and of course, somewhere for Ben to do his car repairs.
0:14:05 > 0:14:07Still, lots of work to do to sort the house out,
0:14:07 > 0:14:09how are they going to get on?
0:14:09 > 0:14:11You can find out later in the show.
0:14:14 > 0:14:20MUSIC: "Thriller" by Michael Jackson
0:14:20 > 0:14:22Today I'm in Gravesend, Kent,
0:14:22 > 0:14:26just 25 minutes from Central London by high speed train.
0:14:26 > 0:14:29The name Gravesend may sound rather spooky,
0:14:29 > 0:14:32so will the next auction lot be a thriller or a shocker?
0:14:33 > 0:14:36Under a mile from the Gravesend town centre
0:14:36 > 0:14:40and the train station is the property I'm here to see today.
0:14:40 > 0:14:41It's a two-bedroom mid-terrace.
0:14:41 > 0:14:46It had a guide of £95-£105,000.
0:14:46 > 0:14:48It looks quite nice from the outside,
0:14:48 > 0:14:50but I've noticed one negative already,
0:14:50 > 0:14:53parking around here is a nightmare!
0:14:53 > 0:14:55The road is noisy, it's all restricted
0:14:55 > 0:14:58and there's not EVEN enough room to have any off-street parking.
0:14:58 > 0:15:00I'm going to have a look around.
0:15:02 > 0:15:05So it's traffic wardens on the prowl round here
0:15:05 > 0:15:07rather than ghosts and ghouls,
0:15:07 > 0:15:10but from the outside this mid-terrace look pretty promising.
0:15:14 > 0:15:15So, not too bad.
0:15:15 > 0:15:19First impressions, it's typically laid out as you'd expect
0:15:19 > 0:15:20a terraced house to be.
0:15:20 > 0:15:23Good little lounge there, stairs, second reception room.
0:15:23 > 0:15:28It's a bit of a cappuccino colour scheme going on - beige everywhere.
0:15:28 > 0:15:32It's a bit tired, it's got wallpapered ceilings here,
0:15:32 > 0:15:35you've got a sort of stipple effect over there,
0:15:35 > 0:15:37no features to shout about.
0:15:37 > 0:15:38The kitchen through here, again,
0:15:38 > 0:15:42really old-fashioned, it needs a complete modern overhaul.
0:15:42 > 0:15:44So you're going to need to spend money here.
0:15:45 > 0:15:49The kitchen needs to be turned right around
0:15:49 > 0:15:52and dragged into the 21st century from the 1980s.
0:15:52 > 0:15:54# I said upside down you're turning me
0:15:54 > 0:15:57# You're giving love instinctively
0:15:57 > 0:16:00# Round and round you're turning me... #
0:16:00 > 0:16:02The good news is that so far all the work needed
0:16:02 > 0:16:04appears to be cosmetic
0:16:04 > 0:16:06as the building itself seems to be in good nick.
0:16:06 > 0:16:08What about upstairs?
0:16:10 > 0:16:13Upstairs you've got two bedrooms,
0:16:13 > 0:16:14but the big downside is the bathroom.
0:16:14 > 0:16:19Great it's upstairs, but the only access is through this bedroom.
0:16:19 > 0:16:23The bathroom also looks as if it's stuck in a bygone era.
0:16:23 > 0:16:26# That's just the way it is... #
0:16:29 > 0:16:32But does the awkward layout here have to be like this?
0:16:32 > 0:16:37Well, I've seen this done so many times before and it can work.
0:16:37 > 0:16:39You put a corridor along here,
0:16:39 > 0:16:42which means the stairs would need to be moved
0:16:42 > 0:16:44so the access will be this way.
0:16:44 > 0:16:46It's a lot of expense, it's a lot of work,
0:16:46 > 0:16:49you may need an RSJ to support the walls downstairs.
0:16:49 > 0:16:53And you are still only left with just a two-bedroom house.
0:16:53 > 0:16:58# That's just the way it is... #
0:16:58 > 0:17:01As it stands the configuration of this mid-terrace house
0:17:01 > 0:17:02is seriously limiting.
0:17:02 > 0:17:05You couldn't really rent it out to individuals, for example.
0:17:05 > 0:17:07But I think there may be another option out back.
0:17:10 > 0:17:13Well, this is the little garden you get with the lot,
0:17:13 > 0:17:18and this is an outbuilding and, of course, there's the old outside loo!
0:17:18 > 0:17:21So anther option is to make this into a proper working toilet,
0:17:21 > 0:17:24accessed off the kitchen.
0:17:24 > 0:17:26But again, that's going to cost you.
0:17:26 > 0:17:29My concern is these properties have a ceiling price.
0:17:29 > 0:17:33If you spend too much money, the danger is you will not get it back.
0:17:33 > 0:17:34You must do your research.
0:17:34 > 0:17:37Think about what the local market dictates,
0:17:37 > 0:17:41rather than developing to your own personal tastes.
0:17:43 > 0:17:44There may be issues with the layout
0:17:44 > 0:17:48but I really quite like this two-bedroom terrace.
0:17:48 > 0:17:53It went to auction at a guide price of 95-105,000.
0:17:53 > 0:17:55We asked a local estate agent to look around
0:17:55 > 0:17:57and give us her thoughts.
0:17:59 > 0:18:03The property's a very standard mid-terrace, two-bedroom property.
0:18:03 > 0:18:05There's a lot of these in the Gravesend area.
0:18:05 > 0:18:07However, they're very popular.
0:18:08 > 0:18:10So far, so good, but what are the pros and cons
0:18:11 > 0:18:13of this particular property?
0:18:14 > 0:18:17The pros for this property, I would say,
0:18:17 > 0:18:19it's only a short walk to the Gravesend town centre.
0:18:19 > 0:18:24However, a big no-no is the parking issue along this road.
0:18:24 > 0:18:27The parking situation may put some people off,
0:18:27 > 0:18:29but what could the place rent out for
0:18:29 > 0:18:33if the purchaser renovates it as a two-bedroom house?
0:18:34 > 0:18:38Once this property had been refurbished to a suitable standard,
0:18:38 > 0:18:41being a two-bedroom property
0:18:41 > 0:18:44you should achieve between £650-£700 per calendar month.
0:18:45 > 0:18:48And if they extend and make it three beds?
0:18:48 > 0:18:51If it was a three-bedroom property, possibly up to
0:18:51 > 0:18:55775 per calendar month, not a great deal of difference, really.
0:18:56 > 0:18:58Food for thought there.
0:18:58 > 0:19:00Is it really worth moving the bathroom?
0:19:00 > 0:19:03How would it affect the resale value?
0:19:03 > 0:19:07If this property was refurbished as a two-bedroom property,
0:19:07 > 0:19:10you would achieve around about £130,000.
0:19:10 > 0:19:12However, if it was made into a three-bedroom property,
0:19:12 > 0:19:15you'd probably achieve up to £150,000.
0:19:16 > 0:19:19Well, this is a nice little Victorian terrace.
0:19:19 > 0:19:23It needs a complete overhaul, but the big question is,
0:19:23 > 0:19:25what do you do about that bathroom?
0:19:25 > 0:19:30Well, that's up to the new buyer, let's meet them at the auction.
0:19:30 > 0:19:33Good-looking house 95-105 guide start me at 95,000.
0:19:33 > 0:19:3695 I've got, at the back. 95 I'm on the way.
0:19:36 > 0:19:40At 98. And 100. And 100. And 2?
0:19:40 > 0:19:44102 I've got in the middle. And 5. 105. 105 I've got.
0:19:44 > 0:19:48And 7 now, if you like. At 107. 107 is sitting. You're both sitting.
0:19:48 > 0:19:51Are you together or...? You're going to have a punch-up afterwards.
0:19:51 > 0:19:55I've got you first, sir, at 107. 108 with you.
0:19:55 > 0:20:02109? 109. And 10 to either of you sitting down. 110. It's 110 and 11.
0:20:02 > 0:20:11111. 111. And 12. 112. And 14, 114. And 16. 116.
0:20:11 > 0:20:14£118,000 to the gentleman sitting on the end of the aisle,
0:20:14 > 0:20:18make no mistake. 120 it's against you sitting and you standing.
0:20:18 > 0:20:21120 I've got. And 2. 122.
0:20:21 > 0:20:26122. 122 I've got. 124. 124 I've got.
0:20:26 > 0:20:30He was very reluctant though, make 126 and he might not come back again.
0:20:30 > 0:20:35126? 125 I've got, 125. 126, it's up to you.
0:20:35 > 0:20:40126, he says, "Yes." 127? 127.
0:20:40 > 0:20:42127,000, one more go.
0:20:42 > 0:20:44127, good man.
0:20:44 > 0:20:49127. And 128 now. It's against both of you standing and sitting again.
0:20:49 > 0:20:52For the first time then at £127,000 sitting at the end of the aisle,
0:20:52 > 0:20:53make no mistake.
0:20:53 > 0:20:57For the second time at 127,000, your last chance.
0:20:57 > 0:21:01Third and final time at 127,000.
0:21:01 > 0:21:03If you're sure, you've got it, sitting down, well done.
0:21:03 > 0:21:06Good bid, £127,000. Well done.
0:21:06 > 0:21:11That final winning bid, 22,000 over the upper guide price,
0:21:11 > 0:21:14came from Peter who was at the auction with his wife Sophie.
0:21:14 > 0:21:18He runs his own company fitting and servicing fire sprinklers.
0:21:18 > 0:21:21# Rain drops keep falling on my head
0:21:22 > 0:21:24# And just... #
0:21:24 > 0:21:28I met Peter back at the property to find out his plans.
0:21:28 > 0:21:30Peter, I loved the auction.
0:21:30 > 0:21:33Your wife looked SO relieved when the bidding stopped at 127.
0:21:33 > 0:21:37- Yeah, she certainly did.- She didn't want you to go any further did she?
0:21:37 > 0:21:40- No, I already went more than I should've.- Come on, spill the beans,
0:21:40 > 0:21:43- how much were you supposed to spend on that day?- About 120.
0:21:43 > 0:21:45Did your wife go mad?!
0:21:45 > 0:21:47She didn't speak to me for a little while so...
0:21:47 > 0:21:50She's going to forgive you when it's all looking beautiful, I'm sure.
0:21:50 > 0:21:55Yeah, hopefully. Peter and Sophie have three young children.
0:21:55 > 0:21:59This is the third property that Peter's bought, one for each kid
0:21:59 > 0:22:02as a long-term investment to pay for their university tuition fees.
0:22:02 > 0:22:04Forward thinking or what?
0:22:04 > 0:22:07So, how many kids do you want to have? Hopefully you'll stop there.
0:22:07 > 0:22:09No, no, that's a debateable question!
0:22:09 > 0:22:12Before I proposed to my wife, I told her I wanted as many as my nan had.
0:22:12 > 0:22:16- My nan had 12 children.- What?!
0:22:16 > 0:22:19Erm, so we had a little bit of a haggle and we got down to seven.
0:22:21 > 0:22:22So you're going to buy half a street?
0:22:22 > 0:22:26Yeah, that's right. I might need to get a larger street.
0:22:26 > 0:22:27Peter, I got to say, you are ambitious.
0:22:27 > 0:22:30At the moment I see life's like a game of Monopoly.
0:22:30 > 0:22:32If you want to win a game of Monopoly,
0:22:32 > 0:22:36buy as many properties as you can and stretch yourself at the beginning,
0:22:36 > 0:22:39and towards the end of the game sit back and collect the rents.
0:22:39 > 0:22:40I sort of look at life like that.
0:22:42 > 0:22:44Now, I wouldn't want to imply
0:22:44 > 0:22:46that Peter was PLAYING at this, not at all.
0:22:46 > 0:22:51But I reckon he may be taking a bit of a chance in his strategy
0:22:51 > 0:22:53for this particular renovation.
0:22:53 > 0:22:54Tell me the story, Peter,
0:22:54 > 0:22:56why did you want to buy this house in Gravesend?
0:22:56 > 0:22:59I'm actually buying it for a tenant in mind.
0:22:59 > 0:23:01They was looking for either Gravesend or Dartford.
0:23:01 > 0:23:03It just so happened.
0:23:03 > 0:23:07I've tried to buy through estate agents for three or four months
0:23:07 > 0:23:10and they kept falling through, so when the auction came up,
0:23:10 > 0:23:14this was just the only one really that suited the needs for it, so.
0:23:14 > 0:23:16There is clearly a risk involved
0:23:16 > 0:23:20in providing a rental property for a specific tenant.
0:23:20 > 0:23:22What happens if their circumstances change?
0:23:22 > 0:23:26But Peter's sticking to his game plan.
0:23:26 > 0:23:29So, firstly, what's your budget?
0:23:29 > 0:23:33- 15,000.- So you've got 15,000. What are you going to do with that?
0:23:33 > 0:23:37Put an extension the back behind the kitchen to house a bathroom.
0:23:37 > 0:23:40The bathroom that's upstairs then becomes a third bedroom,
0:23:40 > 0:23:42so we'll have a bedroom off of a bedroom as opposed to
0:23:42 > 0:23:44a bathroom off of a bedroom.
0:23:44 > 0:23:45New windows, hopefully,
0:23:45 > 0:23:48and then the rest of it should be just a paint job.
0:23:48 > 0:23:50So, why have you decided to go down that route?
0:23:50 > 0:23:53There's so many options with a property like this.
0:23:53 > 0:23:56Does it suit your tenant to have the bedroom off of the bedroom.
0:23:56 > 0:24:00Yeah, it certainly does. They've got a newborn baby, it would be like
0:24:00 > 0:24:04they could have the nursery off of the bedroom for the shorter term,
0:24:04 > 0:24:08and he's got a computer room wherever he lives anyway
0:24:08 > 0:24:10so that'll be his computer room
0:24:10 > 0:24:13and house everything and keep it separate from the house.
0:24:13 > 0:24:16So do you really think that within that budget of 15 grand you can build,
0:24:16 > 0:24:19you can put a new bathroom in, a new kitchen?
0:24:19 > 0:24:21- New kitchen, yeah. - New kitchen, new windows?
0:24:21 > 0:24:23Yeah...
0:24:23 > 0:24:24I'll do a lot of work myself, a lot of friends,
0:24:24 > 0:24:27a lot of my staff at work will do bits and pieces.
0:24:27 > 0:24:29What about the parking?
0:24:29 > 0:24:32This is just not an ideal road for parking.
0:24:32 > 0:24:33No, it's not the greatest,
0:24:33 > 0:24:36but at present the tenants don't actually drive.
0:24:36 > 0:24:39He's actually timed the walk himself down to the train station,
0:24:39 > 0:24:42five minutes, so at present it won't be a problem
0:24:42 > 0:24:43but we'll see after that.
0:24:43 > 0:24:45So how long do you think it's going to take you?
0:24:46 > 0:24:47Having watched the show before,
0:24:47 > 0:24:49I'll err on the side of caution and say three months
0:24:49 > 0:24:50but it should be quicker.
0:24:50 > 0:24:54I'll expect you to be quicker than that! Three months is a long time,
0:24:54 > 0:24:56you'll be able to knock this out before then.
0:24:56 > 0:24:59- What are you thinking, realistically?- Six to eight weeks,
0:24:59 > 0:25:01- I would've thought.- Brilliant.
0:25:01 > 0:25:02Peter, it's been lovely meeting you.
0:25:02 > 0:25:05It'll be exciting seeing what you do and how you do it.
0:25:05 > 0:25:07- OK, thanks very much.- Well done. - Cheers.
0:25:07 > 0:25:11I'm not convinced about Peter's plans for the extension
0:25:11 > 0:25:13and the bathroom.
0:25:13 > 0:25:14He is going to spend a lot of cash
0:25:14 > 0:25:17and he's already paid top dollar for this!
0:25:17 > 0:25:20But if you view life like a board game,
0:25:20 > 0:25:24if you want to pass GO you're going to have to take a CHANCE.
0:25:24 > 0:25:27Find out how he gets on later in the programme.
0:25:28 > 0:25:31Coming up there's a mine of a different kind in this former
0:25:31 > 0:25:33colliery house in County Durham.
0:25:33 > 0:25:37This place is actually a bit of a gold mine!
0:25:37 > 0:25:41In Kent, numbers aren't just financial for Peter.
0:25:41 > 0:25:44Realistically, probably end up with more houses than children,
0:25:44 > 0:25:48but quite what the numbers are is to be discussed.
0:25:50 > 0:25:53But first, Leanne appears to be taking everything in her stride
0:25:53 > 0:25:55in Cornwall.
0:25:55 > 0:25:58So I can just relax, I don't need to worry!
0:26:05 > 0:26:09Time now to return to the beautiful Cornish hamlet of Paul,
0:26:09 > 0:26:12where this three-bedroom cottage sold at auction for 160,000.
0:26:13 > 0:26:15The successful bidder was Leanne
0:26:15 > 0:26:17who purchased the property with her partner Ben.
0:26:19 > 0:26:24Leanne and Ben both grew up in the area and returned home over three years ago.
0:26:24 > 0:26:29They've been looking for a new project since renovating their previous house in Leicester.
0:26:29 > 0:26:33I think it's fair to say they're very keen to have a place of their own.
0:26:33 > 0:26:37We are living with Ben's parents at the moment,
0:26:37 > 0:26:41but we've lived with them for about 3½ years, since we moved down from Leicester,
0:26:41 > 0:26:47since I finished work up there and study. We're living in a caravan in the garden. So, yeah...!
0:26:47 > 0:26:50We're quite excited to have our own property. So, yeah, we can't wait.
0:26:54 > 0:26:56The property did benefit from a large garden,
0:26:56 > 0:27:00fantastic sea views and a partially-built workshop.
0:27:00 > 0:27:06However, internally it did require some modernisation and possible restructuring of the living area.
0:27:09 > 0:27:12Well, one year later, we're back to find out whether Leanne and Ben
0:27:12 > 0:27:16have managed to ditch the caravan and create their dream home.
0:27:18 > 0:27:23On the outside, the brickwork has been re-rendered and new skylights and a front door have been added.
0:27:25 > 0:27:29The ground floor, which was the living area and kitchen,
0:27:29 > 0:27:34has now become two bedrooms, one which doubles as a snug with a foldaway bed.
0:27:35 > 0:27:38The second, where the kitchen used to be, is now the master bedroom.
0:27:41 > 0:27:45And although the bathroom has not changed location, it has been thoroughly updated.
0:27:48 > 0:27:53With the downstairs becoming bedrooms, the living area is now on the floor above.
0:27:53 > 0:27:58Where once there were three bedrooms, now there is one large open-plan living area.
0:27:58 > 0:28:01Gone are the low ceilings and stud walls
0:28:01 > 0:28:03and the kitchen has been brought upstairs.
0:28:06 > 0:28:10With such a transformation, there must've been a lot of hard work involved.
0:28:10 > 0:28:15The main thing to the property that we've done was to completely gut the house and property to start with.
0:28:15 > 0:28:20There was no damp proofing in the floors, so that all came out.
0:28:20 > 0:28:25We had to obviously screed the floor. Then we put underfloor heating all downstairs.
0:28:25 > 0:28:31Upstairs, all of the A-frames went back in, full insulation in all of the roof.
0:28:32 > 0:28:37All of the joists came out and they were all replaced on the floor upstairs.
0:28:37 > 0:28:41Then all of the render left some quoins exposed.
0:28:41 > 0:28:44Then it was all sort of the finishing touches, really -
0:28:44 > 0:28:48new kitchen, new staircase, new bathroom.
0:28:48 > 0:28:51So, yeah, quite a lot of work's gone on.
0:28:51 > 0:28:54I love everything about the property.
0:28:54 > 0:28:57I really can't say enough how proud I am of Ben
0:28:57 > 0:28:59and all of the work he's done, all of the ideas he's had.
0:28:59 > 0:29:05He's just made it a fantastic space to be and to live for us.
0:29:05 > 0:29:09He's chosen everything. I helped with the design of the kitchen,
0:29:09 > 0:29:12but it was all really in his head already.
0:29:12 > 0:29:14The paint colours, he chose everything.
0:29:14 > 0:29:18He was just, yeah, he's got a really good eye so I can just relax, I don't need to worry.
0:29:20 > 0:29:24Leanne and Ben had hoped to have the project complete in around nine months.
0:29:24 > 0:29:27So were they able to stay on course for that?
0:29:29 > 0:29:32I think we're just coming on for a year now.
0:29:32 > 0:29:38I think we weren't 100% sure. We thought there'd be a lot of work. We didn't underestimate that.
0:29:38 > 0:29:41But we weren't sure exactly how much we'd have to rip out.
0:29:41 > 0:29:44So the extra couple of months has just purely been down to that
0:29:44 > 0:29:50and also the fact that since you last came down, I'm now working full-time.
0:29:50 > 0:29:52So it's been kind of left to Ben to sort of carry on.
0:29:52 > 0:29:59The couple had a budget of between £35,000 and £50,000. Did they manage to stick to that?
0:29:59 > 0:30:02I think we've done pretty well with the budget, actually.
0:30:02 > 0:30:05We've still got some work to do outside,
0:30:05 > 0:30:07and I think when we have completely finished that,
0:30:07 > 0:30:13we should be at around the 55 mark by the time we've finished everything.
0:30:15 > 0:30:21So, whilst the timescale and budget have gone slightly over, overall they've done a great job.
0:30:21 > 0:30:25Leanne and Ben paid £160,000 for the property
0:30:25 > 0:30:32and have spent a further £55,000 on the renovations, giving them a total outlay of around 215,000.
0:30:34 > 0:30:39We asked two local property experts for their opinion.
0:30:39 > 0:30:44First impressions of the property are that it's been renovated to an exceptionally high standard.
0:30:44 > 0:30:46The space downstairs,
0:30:46 > 0:30:50the bedroom obviously doubling up as another reception room
0:30:50 > 0:30:53downstairs here is a very good idea.
0:30:53 > 0:31:00The idea of making upstairs open plan with the vaulted ceilings is just very unique.
0:31:00 > 0:31:02I think the open-plan living area upstairs
0:31:02 > 0:31:05has been utilised very well - the space has been used
0:31:05 > 0:31:08but yet it retains that certain cosiness as well.
0:31:08 > 0:31:11If the property were to be rented out,
0:31:11 > 0:31:14what could the monthly income be?
0:31:14 > 0:31:16If I was to put this property up for rent,
0:31:16 > 0:31:22I would expect it to achieve £750 to £850 per calendar month.
0:31:22 > 0:31:25I think if I was to put this up for rent, I would expect to achieve
0:31:25 > 0:31:29between £750 and £800 per calendar month.
0:31:29 > 0:31:33I haven't even thought about rental at all, and I don't think Ben has,
0:31:33 > 0:31:36so that's actually not something I'd considered.
0:31:36 > 0:31:41But that's higher than I think I probably would have valued it myself, so that's really good.
0:31:42 > 0:31:46What could its value be if the house were put up for resale?
0:31:48 > 0:31:51If this property was to come on to the market to sell,
0:31:51 > 0:31:56I'd expect it to achieve £240,000.
0:31:56 > 0:31:58If I was to put this on the open market today
0:31:58 > 0:32:04I would expect to achieve a figure somewhere between £235,000 and £240,000.
0:32:04 > 0:32:07I think it reaffirms that we've done a good job, and that if
0:32:07 > 0:32:11we wanted to do something again there is a profit in what we're doing,
0:32:11 > 0:32:12so we could do it again.
0:32:12 > 0:32:14It would be really hard to leave this place,
0:32:14 > 0:32:18so it would definitely need us to really consider all of the options.
0:32:18 > 0:32:23Those valuations would give Leanne and Ben a tidy profit pre-tax
0:32:23 > 0:32:27of between £20,000 and £25,000, after the usual selling expenses.
0:32:27 > 0:32:30Whilst they're in no hurry to move,
0:32:30 > 0:32:31are they tempted to renovate more properties in the future?
0:32:31 > 0:32:35Next time, if we were to look at properties,
0:32:35 > 0:32:39I know that Ben's already looking at things like barn conversions,
0:32:39 > 0:32:42so I think it would be a bigger project.
0:32:42 > 0:32:44And it would just be lovely to do something
0:32:44 > 0:32:46where we could again put our own stamp on it,
0:32:46 > 0:32:49and perhaps next time it would be a home that we could stay in
0:32:49 > 0:32:53for a longer time - the foreseeable future if not indefinitely -
0:32:53 > 0:32:54a real family home.
0:32:56 > 0:33:00Today, I'm in the former coal-mining village of Blackhall.
0:33:02 > 0:33:03The rows of terraced houses were once
0:33:03 > 0:33:06full of miners from Blackhall Colliery.
0:33:06 > 0:33:09But the village has now become a bit of a commuter area for workers
0:33:09 > 0:33:14at the nearby call centres in Hartlepool and Peterlee.
0:33:15 > 0:33:16Tourism also boosts the economy,
0:33:16 > 0:33:21as it's right on the North Sea coast of County Durham.
0:33:22 > 0:33:27Well, this nearby beach was once strewn with coal.
0:33:27 > 0:33:30But its claim to fame is that it was the setting
0:33:30 > 0:33:36for the climactic chase scene in the 1971 film Get Carter,
0:33:36 > 0:33:38starring Michael Caine.
0:33:38 > 0:33:43Well, in that film this beach was black from the coal spoilings
0:33:43 > 0:33:47transported here by the colliery conveyor belt.
0:33:47 > 0:33:50Well, it's taken the closure of the mines
0:33:50 > 0:33:54and a £10 million refurbishment programme
0:33:54 > 0:33:58to return the beach to its pristine condition.
0:33:59 > 0:34:01The beach really has been transformed.
0:34:01 > 0:34:06It's lovely. Especially if you remember the mess it was at the end of that film!
0:34:06 > 0:34:10And the beautiful beaches go on as far as the eye can see.
0:34:12 > 0:34:14Well, right in the heart of Blackhall
0:34:14 > 0:34:16is the property I'm here to see.
0:34:16 > 0:34:19It's one of these terraced houses,
0:34:19 > 0:34:22probably built for the miners around the 1900s.
0:34:22 > 0:34:27Guide price was £29,950 -
0:34:27 > 0:34:31for a two-bed?! That's got to be worth a look.
0:34:32 > 0:34:37There's a large front garden, which is unusual for a terraced property.
0:34:37 > 0:34:39From the outside, the place is showing its age,
0:34:39 > 0:34:44and I'd say that the roof looks in need of some attention.
0:34:44 > 0:34:48So, what have we got? Well, quite an interesting layout.
0:34:48 > 0:34:51Through the front door, and the stairs go off there
0:34:51 > 0:34:53and up to your two bedrooms and a bathroom.
0:34:53 > 0:34:55I think that's quite a good use of space,
0:34:55 > 0:34:59because it creates a really nice room here which is your living room.
0:34:59 > 0:35:02Now, originally this would have been your classic two-up two-down -
0:35:02 > 0:35:04two rooms down here, two upstairs -
0:35:04 > 0:35:07but as I said, there has been the addition of a bathroom upstairs,
0:35:07 > 0:35:10which is good news. In here, lots of light coming in through the windows.
0:35:10 > 0:35:15I'd like to see an open fire in that fire breast there,
0:35:15 > 0:35:17that would really give a focal point to the room,
0:35:17 > 0:35:20but then through to the second room downstairs, your kitchen...
0:35:20 > 0:35:22Again, there aren't many rooms,
0:35:22 > 0:35:25but they're a good size. There's nice high ceilings,
0:35:25 > 0:35:28enough room in here to have maybe a kitchen table
0:35:28 > 0:35:31to create a bit more of a sort of family space.
0:35:31 > 0:35:34The units - well, judge for yourself.
0:35:34 > 0:35:36If you were renting this place out, they might be OK.
0:35:36 > 0:35:40I think I'd want to spend a bit of money in here, especially by putting
0:35:40 > 0:35:42some nicer flooring down.
0:35:42 > 0:35:45It is pretty much doing what it said it was going to do
0:35:45 > 0:35:47and I like what there is.
0:35:47 > 0:35:51KATIE MELUA: # Everything you are
0:35:51 > 0:35:55# Is just what it says on the tin... #
0:35:59 > 0:36:01That narrow staircase looks a little daunting.
0:36:01 > 0:36:05It's steep but it is functional.
0:36:05 > 0:36:09And up here, the two bedrooms look in pretty good condition,
0:36:10 > 0:36:14although I'm not sure the same could be said of the bathroom.
0:36:16 > 0:36:19But either way it would not be a bad buy
0:36:19 > 0:36:24at around the guide price of £29,950.
0:36:24 > 0:36:29Well, the bathroom is a little bit dated and it would definitely benefit from a new bathroom suite.
0:36:29 > 0:36:33But the main thing is it is upstairs, which is a real bonus.
0:36:33 > 0:36:35You have got two bedrooms. That one not so big.
0:36:36 > 0:36:40The front one, yeah, a fairly decent size. It's a great little house.
0:36:40 > 0:36:45But let's just look at the numbers for a second. If you could get this for anything like that guide price,
0:36:45 > 0:36:51and rent this out for say, round here, £400 a month perhaps,
0:36:51 > 0:36:57you're looking at a round about a 20% yield on your investment.
0:36:58 > 0:37:02Where are you going to get that kind of return these days?
0:37:02 > 0:37:07This place is actually a bit of a gold mine.
0:37:07 > 0:37:12# There's a gold mine in the sky
0:37:12 > 0:37:16# Far away... #
0:37:17 > 0:37:21There really is very little to do upstairs, so I think
0:37:21 > 0:37:24it would be worth investing some money in the bathroom.
0:37:24 > 0:37:26Looking out from the back room window,
0:37:26 > 0:37:31it looks as if there may be some extra toilet facilities, too.
0:37:31 > 0:37:36A real bonus to the house, something you wouldn't expect necessarily from a terrace like this,
0:37:36 > 0:37:39is that you've actually got quite a lot of outdoor space.
0:37:39 > 0:37:41At the front, a decent sized garden.
0:37:41 > 0:37:46And at the back, a really useful little, well, rear courtyard area.
0:37:46 > 0:37:50A couple of sheds. Probably at some stage these were the original outdoor loos!
0:37:50 > 0:37:53Um, but useful space.
0:37:53 > 0:37:57And glancing up at the back again, a few bits and pieces to sort out. But in general,
0:37:57 > 0:38:01nothing that's got me worried at all.
0:38:01 > 0:38:09So this mid-terrace that was guided at 29,950 quid, gets a tick from me.
0:38:09 > 0:38:12Let's see how a local property expert rates it.
0:38:13 > 0:38:15I think the property is in quite good condition.
0:38:15 > 0:38:19It does need some updating. It's only partially double glazed.
0:38:19 > 0:38:22It's already got a combi boiler, which is a great addition as well.
0:38:22 > 0:38:24I would probably change the kitchen,
0:38:24 > 0:38:27although it depends if you want to live in it or rent it out.
0:38:27 > 0:38:32Get a re-skim, get it carpeted and get it decorated.
0:38:32 > 0:38:36How much rental income could the house achieve?
0:38:36 > 0:38:40I predict around about £400 per calendar month.
0:38:41 > 0:38:44So the yield on this house could be impressive,
0:38:44 > 0:38:48if it was bought near to the guide price of just under £30,000.
0:38:48 > 0:38:51But what could it re-sell for?
0:38:51 > 0:38:53Once renovated, if put on the market,
0:38:53 > 0:38:57there is a ceiling price with these properties.
0:38:57 > 0:38:59I think probably between 60 and 65,000.
0:39:01 > 0:39:04Well it might not be particularly glamorous,
0:39:04 > 0:39:09but can you see why this property is a really amazing investment?
0:39:09 > 0:39:13I hope so. Let's see who agreed when it went under the hammer.
0:39:13 > 0:39:15We're going to start with lot number one.
0:39:15 > 0:39:17We'll start at 20. If I don't get 20 we won't go anywhere.
0:39:17 > 0:39:21I need 20,000, thank you. One bid of 20,000.
0:39:21 > 0:39:2422,000. 24,000.
0:39:24 > 0:39:2826? No. I'll take one if it helps. At 25?
0:39:28 > 0:39:3025,000 bid.
0:39:30 > 0:39:3426? I am selling it at £25,000. 26,000.
0:39:34 > 0:39:3627?
0:39:36 > 0:39:41I'll take 500. 26½ bid. 27. And a half?
0:39:41 > 0:39:44£27,000. Anything further?
0:39:44 > 0:39:48I'll take 500 anywhere else. I'm selling at once at 27,000.
0:39:48 > 0:39:52I'm selling it for the second time at £27,000... Sold.
0:39:55 > 0:39:58That successful bidder who paid £27,000
0:39:58 > 0:40:01was property developer Kami.
0:40:02 > 0:40:09He lives in Newcastle and has just added this mid-terrace to his expanding property portfolio.
0:40:09 > 0:40:12To find out what attracted him to the place
0:40:12 > 0:40:15and what his plans are, I went to meet him there.
0:40:15 > 0:40:20- Kami, good to meet you. - Nice to meet you.- Congratulations. - Thank you very much.
0:40:20 > 0:40:23So it's still possible to get a decent house for 27 grand?
0:40:23 > 0:40:25It's a bargain, isn't it? A proper bargain.
0:40:25 > 0:40:29- So how was the auction?- The auction was OK. On the auction day I went to the wrong hotel.
0:40:29 > 0:40:30You went to the wrong hotel?
0:40:30 > 0:40:33Yeah, they both have the same name, I went to the hotel in Gateshead.
0:40:33 > 0:40:36So I travelled from Gateshead to Gosforth in 10 minutes.
0:40:36 > 0:40:39- Wow!- Crazy.
0:40:39 > 0:40:43- Why are you focusing on this area? - Nice people, the people are nice.
0:40:43 > 0:40:46There's always a market for housing. Houses are cheap.
0:40:46 > 0:40:48Once people move in the houses, they never move.
0:40:48 > 0:40:51Not like the city, where they're always moving around.
0:40:51 > 0:40:54They tend to move all the time. But in a village like this,
0:40:54 > 0:40:57once they get a nice house, they tend to just stay.
0:40:57 > 0:41:00- Do you know the area?- Yeah, I've been here for about 20 years. - You've lived here.
0:41:00 > 0:41:03- And what about owning property? - About 10 years.
0:41:03 > 0:41:07- So have you got property similar to this one?- Yeah. - And how do they work
0:41:07 > 0:41:09- as a rental property?- Straight away.
0:41:09 > 0:41:13- I've got somebody for this straightaway. - You have already got somebody?- Aye.
0:41:13 > 0:41:19- Willing to pay you how much? - 99% of my tenants are all on DHSS.
0:41:19 > 0:41:22So I get money directly from housing benefits.
0:41:22 > 0:41:27- £110 a week.- £110 a week. - 440 a month.- Wow!
0:41:27 > 0:41:28Bargain.
0:41:28 > 0:41:32If you wanted, you could pay this off with the rent in five years.
0:41:32 > 0:41:35- I could, aye. But I won't.- Right. - I'll just buy more.
0:41:35 > 0:41:40So Kami has a masterplan. But he almost missed the auction.
0:41:40 > 0:41:42Luckily he got there in time to bid.
0:41:48 > 0:41:49He's been tracking house prices around here
0:41:49 > 0:41:52and reckons he's got a bit of a bargain.
0:41:52 > 0:41:56This one sold about four or five years ago for £56,000.
0:41:56 > 0:42:00- Woah!- Aye. It was dropped back to 27. I bought it for 27.
0:42:00 > 0:42:03But rental income has always been the same.
0:42:03 > 0:42:07Your yield is doubled. You basically paid half the cost of the house but the rent is the same?
0:42:07 > 0:42:11Yes. The rent always stays the same. Property prices go up and down all the time.
0:42:11 > 0:42:13And how do you finance it? Is it just...
0:42:13 > 0:42:16Banks. I phone my bank manager up.
0:42:16 > 0:42:17So, you're lucky to have such nice bank managers?
0:42:17 > 0:42:19Aye, he's good. I ring him up and he sorts us out.
0:42:19 > 0:42:23# Going to the bank... #
0:42:23 > 0:42:26So tell me what you are going to do to sort this place out?
0:42:26 > 0:42:32The floor needs changing. The walls have a few holes in. It doesn't need re-skim.
0:42:32 > 0:42:34The upstairs, the bathroom needs done out.
0:42:34 > 0:42:37The windows and doors.
0:42:37 > 0:42:39I've got to look at the electrics, check the gas boiler.
0:42:39 > 0:42:43First of all, I check the roof first. I'm sure there's damp in the house.
0:42:43 > 0:42:46I've seen a leak in one of the ceilings. Start from the top, work my way to the bottom.
0:42:46 > 0:42:49- What's the budget for the work? - Windows and doors about two,
0:42:49 > 0:42:52the bathroom's about five.
0:42:52 > 0:42:55I mean, luckily, the rewiring's already done, so I have saved money.
0:42:55 > 0:42:58It's already got gas in, which is a bonus.
0:42:58 > 0:43:00So, about seven or eight grand, I think.
0:43:00 > 0:43:03Kami doesn't do the work himself.
0:43:03 > 0:43:07He has a team of local tradesmen and selects the skills he needs
0:43:07 > 0:43:12depending on the work each property requires.
0:43:12 > 0:43:13What's the timescale for sorting it out?
0:43:13 > 0:43:17This one, I think if I get the lads together, four or five weeks max.
0:43:17 > 0:43:20- And you've already got somebody lined up to rent it?- Aye.
0:43:20 > 0:43:22It's a small village. Everyone knows everyone.
0:43:22 > 0:43:25They'll be thinking who's going to get it.
0:43:25 > 0:43:29Traditionally, I would put Blackhallers in, people from Blackhall. Give them the first knock.
0:43:29 > 0:43:31- Just local villagers.- Oh, great.
0:43:31 > 0:43:33So you're providing a good service?
0:43:33 > 0:43:36- Congratulations.- Thank you. - Good luck with it.- Cheers.
0:43:36 > 0:43:38I'm sure you'll do an absolutely splendid job,
0:43:38 > 0:43:40and look forward to seeing you again.
0:43:40 > 0:43:44There are a lot of doom mongers in the property world
0:43:44 > 0:43:46at the moment.
0:43:46 > 0:43:49But, as Kami proves with this property,
0:43:49 > 0:43:55if you know what you buy, there is still so much money to be made out of buying houses.
0:43:55 > 0:44:00You can find out how Kami gets on restoring this place later in the show.
0:44:03 > 0:44:05Did our fearless developers emerge victorious?
0:44:05 > 0:44:08Or did they flounder in the shallow end?
0:44:08 > 0:44:10Let's go back and find out.
0:44:12 > 0:44:15Back now, to Gravesend in Kent,
0:44:15 > 0:44:17to check up on progress at this two-bed mid-terrace house,
0:44:17 > 0:44:22which Peter bought at auction for £127,000.
0:44:22 > 0:44:25This is the third investment property that he's bought,
0:44:25 > 0:44:27one for each of his three young kids,
0:44:27 > 0:44:29to help pay for their future education.
0:44:29 > 0:44:31MUSIC: " Kids" by Robbie Williams & Kylie Minogue
0:44:31 > 0:44:34# Don't mind doing it for the kids.#
0:44:36 > 0:44:41Peter was keen to buy more property, and have more children.
0:44:41 > 0:44:46Before I proposed to my wife, I told her I wanted as many as my nan had.
0:44:46 > 0:44:48- My nan had 12 children.- What?! - We had a bit of a haggle,
0:44:48 > 0:44:51and we got down to seven.
0:44:51 > 0:44:54So you're going to buy half a street?
0:44:54 > 0:44:57Yeah, that's right. I might need to get a larger street.
0:44:57 > 0:45:00Peter gave himself six to eight weeks,
0:45:00 > 0:45:02and a budget of £15,000,
0:45:02 > 0:45:05to rip out the kitchen, move the bathroom into the old outside loo,
0:45:06 > 0:45:07and then create a third bedroom upstairs.
0:45:07 > 0:45:10We're back, ten months after our first visit,
0:45:10 > 0:45:16to see if this build has reached its final destination.
0:45:16 > 0:45:19MUSIC: "Incomplete" by The Backstreet Boys
0:45:32 > 0:45:34So, there's a bit still to do.
0:45:34 > 0:45:38Maybe Peter can explain what happened to his three-month timescale.
0:45:39 > 0:45:41Quite naive, actually.
0:45:41 > 0:45:44It was nearly eight weeks to three months
0:45:44 > 0:45:45before we actually done anything.
0:45:45 > 0:45:49There was concern whether we had to have planning permission.
0:45:49 > 0:45:53Although quite a small extension, we've got a manhole out the back,
0:45:53 > 0:45:56and the proximity to the property caused a concern.
0:45:56 > 0:46:00In the end, we didn't actually need planning permission,
0:46:00 > 0:46:03but that was three months down the line before we even realised that,
0:46:03 > 0:46:05and could get started.
0:46:05 > 0:46:08So the time frame totally went out the window.
0:46:08 > 0:46:10# Incomplete. #
0:46:13 > 0:46:18Then the tenant Peter had lined up, moved in, and Peter put the renovation on the backburner,
0:46:18 > 0:46:23while he carried out a contract for his fire protection company.
0:46:23 > 0:46:25So, progress has been much slower than he hoped,
0:46:25 > 0:46:27but the lion's share has been done.
0:46:28 > 0:46:32First thing we got done was all the windows replaced, new double-glazing.
0:46:32 > 0:46:35New kitchen, new bathroom.
0:46:35 > 0:46:38Re-located the access to the back garden,
0:46:38 > 0:46:39moving the door into the living room.
0:46:39 > 0:46:45and started the decorating throughout, really.
0:46:46 > 0:46:49Moving the bathroom to the rear of the kitchen
0:46:49 > 0:46:51was a bigger job than Peter anticipated.
0:46:51 > 0:46:54I wasn't sure it was the right thing to do,
0:46:54 > 0:46:55but is he happy with the result?
0:46:55 > 0:47:00Oh, certainly. Moving the bathroom has been more than successful.
0:47:00 > 0:47:03It's quite surprising how large the existing bathroom upstairs was.
0:47:03 > 0:47:07Indeed, I thought the bathroom downstairs was quite small,
0:47:07 > 0:47:10until the sanitary ware went in.
0:47:10 > 0:47:13Then it looks quite large again. So, yeah, very well.
0:47:13 > 0:47:15More importantly, two of Peter's three children
0:47:15 > 0:47:18seem pretty taken with it, too.
0:47:18 > 0:47:20# The kids are all right. #
0:47:22 > 0:47:24What about the plan to get more properties,
0:47:24 > 0:47:26and more kids?
0:47:26 > 0:47:29Um, we'll have both. We're going to have more of each.
0:47:29 > 0:47:32Realistically, probably end up with more houses than children.
0:47:32 > 0:47:36But quite what the numbers are, is to be discussed.
0:47:36 > 0:47:41I'm sure Peter's wife Sophie will have quite a lot to say about that.
0:47:41 > 0:47:43We know that the timescale has slipped,
0:47:43 > 0:47:46but what about the £15,000 budget.
0:47:46 > 0:47:49Has that gone out of the window, too?
0:47:49 > 0:47:54About £19,000 in total, on the end. We are pleased with that, really.
0:47:54 > 0:48:01£19,000, on top of a purchase price of £127,000
0:48:01 > 0:48:05makes a total outlay of £146,000.
0:48:05 > 0:48:07We asked two local experts to look around
0:48:07 > 0:48:09and give us their thoughts.
0:48:09 > 0:48:12I think moving the bathroom downstairs is a good idea.
0:48:12 > 0:48:16It's created extra space upstairs,
0:48:16 > 0:48:21meaning an extra bedroom, which should lead to more money.
0:48:21 > 0:48:23If this was my own personal property, for me to live in,
0:48:23 > 0:48:25I probably wouldn't have moved the bathroom downstairs.
0:48:25 > 0:48:29However it is good, for both renting and sales, to increase the value.
0:48:29 > 0:48:33So, if Peter were to consider selling in the future, what could it be worth,
0:48:33 > 0:48:37bearing in mind his £146,000 investment here.
0:48:37 > 0:48:41When this property is completely finished, I would say
0:48:41 > 0:48:45this property should fetch in the region of £140 to £145,000.
0:48:45 > 0:48:47Once this property's been fully renovated,
0:48:47 > 0:48:50I would expect to achieve somewhere in the region
0:48:50 > 0:48:52of £150,000 to £160,000.
0:48:52 > 0:48:56The higher one's about what I expected, really. The £160,000 mark.
0:48:56 > 0:48:58I do feel that, in the condition it's in,
0:48:58 > 0:49:01it's quite difficult to value.
0:49:01 > 0:49:04When it's totally presentable for market,
0:49:04 > 0:49:06it would achieve the £160,000 relatively easily.
0:49:06 > 0:49:08Let's hope Peter's right,
0:49:08 > 0:49:12because if he had been thinking of selling it on, there's the chance
0:49:12 > 0:49:18he would make a loss. Thankfully, this was bought as a long-term investment,
0:49:18 > 0:49:22so what kind of rental income would he get, once the work's completed?
0:49:22 > 0:49:26If I were to put this property on the market on a rental basis,
0:49:26 > 0:49:31I would expect to achieve in the region of £750 per calendar month.
0:49:31 > 0:49:33Putting this property on the rental market would achieve
0:49:33 > 0:49:37around about £750 per calendar month.
0:49:37 > 0:49:39That's interesting.
0:49:39 > 0:49:41That's more than what I've currently let it out for.
0:49:41 > 0:49:45But I've got a long-term tenant who'll be here for five years,
0:49:45 > 0:49:46so I'm more than happy with that.
0:49:46 > 0:49:49MUSIC: "Sweet Child O' Mine" by Guns'N'Roses.
0:49:50 > 0:49:52Those rental valuations would mean a yield
0:49:52 > 0:49:55of around six percent for Peter, which is not bad at all.
0:49:55 > 0:49:59But surely this is all about the warm glow you get,
0:49:59 > 0:50:03knowing that you're feathering the nest for your nearest and dearest?
0:50:03 > 0:50:05Oh, definitely. Keeps them smiling.
0:50:05 > 0:50:08They don't really realise it yet.
0:50:08 > 0:50:11They wander around, calling it their houses, and what they've got.
0:50:11 > 0:50:15But certainly when they get older, it'll be well worthwhile.
0:50:23 > 0:50:27We've returned now to the Northeast village of Blackhall,
0:50:27 > 0:50:30where earlier in the programme, local property developer Kami
0:50:30 > 0:50:33bought this mid-terrace for £27,000.
0:50:34 > 0:50:38He has a sizable portfolio of buy-to-let properties,
0:50:38 > 0:50:41and was going to refurbish this house
0:50:41 > 0:50:44and let it out to local tenants.
0:50:45 > 0:50:48So, tell me what you're going to do to sort this place out.
0:50:48 > 0:50:52The floor needs changing. Upstairs, the bathroom needs done out.
0:50:52 > 0:50:56First, I'll check the roof. I'm sure there's damp in the house. I'll start from the top
0:50:56 > 0:50:57and work my way to the bottom.
0:50:57 > 0:51:00He'd set a budget of £7,000 to £8,000,
0:51:00 > 0:51:02and was looking for a quick turnaround
0:51:02 > 0:51:07from his team of tradesmen to compete the job.
0:51:07 > 0:51:10Well, it's now two months later, and the house is finished!
0:51:12 > 0:51:17The garden's been cleared, and Kami's keen to show us around.
0:51:18 > 0:51:23The windows and doors have been replaced, front and back.
0:51:23 > 0:51:26And, through the back door, a great new kitchen has been installed.
0:51:38 > 0:51:42At the front, the living room now has a new feature wall,
0:51:42 > 0:51:45and has been decorated throughout.
0:51:46 > 0:51:49The refurbishment continues upstairs.
0:51:53 > 0:51:56In the bathroom, the colour scheme has been muted,
0:51:56 > 0:52:01and a new suite has been installed, with a shower.
0:52:01 > 0:52:05So the two most important rooms in the house now look great.
0:52:05 > 0:52:11In here, we've done a brand-new kitchen, all the way round. Brand-new sink.
0:52:11 > 0:52:14We've done the hob, extractor, the oven as well.
0:52:14 > 0:52:17Put new windows in, new doors.
0:52:17 > 0:52:22Kept the layout the same way as it was and we've done new floors, as well.
0:52:22 > 0:52:25And brand-new switches all the way round, as you see. So it's good.
0:52:25 > 0:52:27VERY good.
0:52:27 > 0:52:29But it hasn't all been plain sailing,
0:52:29 > 0:52:31because Kami had a major legal problem,
0:52:31 > 0:52:36just as he was about to compete on his auction purchase.
0:52:38 > 0:52:40The day I was going to get the house,
0:52:40 > 0:52:43the day before that, my solicitor went bust.
0:52:43 > 0:52:46I didn't think it was a problem, then I realised I couldn't buy it without a solicitor.
0:52:46 > 0:52:50I ended up getting another solicitor, and bought the house in seven weeks.
0:52:50 > 0:52:54It should have been four weeks. I ended up getting fined, as well.
0:52:54 > 0:52:59So Kami was hit with a penalty payment by the auction house, because he couldn't complete
0:52:59 > 0:53:02within the stipulated 28 days.
0:53:02 > 0:53:06Not because he didn't have the money, but because he didn't have a solicitor.
0:53:06 > 0:53:11That delay meant Kami's team had to work flat-out.
0:53:11 > 0:53:14From start to finish, it took us 11 days.
0:53:14 > 0:53:1611 days non-stop. Had everybody in at the same time.
0:53:16 > 0:53:20He's already got tenants lined up.
0:53:20 > 0:53:23So, upstairs, while the two bedrooms were being decorated,
0:53:23 > 0:53:28he also laid the new carpets that they'd requested.
0:53:28 > 0:53:30His team made sure the roof was watertight,
0:53:30 > 0:53:34and checked the electrics throughout the house.
0:53:34 > 0:53:39A new fuse box has been installed, but the boiler had only recently been put in.
0:53:39 > 0:53:43And the work continued outside.
0:53:44 > 0:53:48What we done, we got the tiles, took the tiles off,
0:53:48 > 0:53:50cos they were causing loads of damp.
0:53:50 > 0:53:53So we brought the tiles out, and then we concreted.
0:53:53 > 0:53:55Solved the problem, so we had that down.
0:53:55 > 0:53:59The former outside loo and storeroom now have new doors,
0:53:59 > 0:54:04and provide extra valuable storage.
0:54:04 > 0:54:06So what effect did the delayed start
0:54:06 > 0:54:10and the auction house's penalty payment of £600
0:54:10 > 0:54:13have on Kami's budget?
0:54:13 > 0:54:16I think the budget was £8,000, I said originally.
0:54:16 > 0:54:17I think I've gone to £8,400.
0:54:17 > 0:54:20I think the only reason why it's gone over by £400,
0:54:20 > 0:54:22cos I'd never considered the garden to be in there.
0:54:22 > 0:54:25I ended up doing the garden, which I normally don't do.
0:54:25 > 0:54:29Kami always project manages his team of builders,
0:54:29 > 0:54:34letting them do the hard physical work, while he finds the tenants.
0:54:34 > 0:54:37I've got the tenants moving in in a couple of hours' time. Good pal of mine.
0:54:37 > 0:54:39Husband and wife, and a daughter.
0:54:39 > 0:54:41I think they should be here for ever, hopefully.
0:54:44 > 0:54:47Time to see what two local estate agents will make of the house.
0:54:49 > 0:54:51First impressions of the property are quite nice.
0:54:51 > 0:54:53It's got a little bit of a "wow" factor.
0:54:53 > 0:54:56They've done it to a particularly good standard, but not overspent.
0:54:56 > 0:54:58My first impressions are
0:54:58 > 0:55:00that they have refurbished it to a high standard,
0:55:00 > 0:55:03and it is just ready for somebody to move into.
0:55:03 > 0:55:06It's clean, it's tidy it's neutral, and it works.
0:55:06 > 0:55:08I particularly like the bathroom and kitchen.
0:55:08 > 0:55:12They've refurbished the kitchen to a good standard.
0:55:12 > 0:55:15And it will be suitable for rental purposes.
0:55:15 > 0:55:17Kami's has got tenants lined up, so how much rental income
0:55:17 > 0:55:21would the agents expect this house to generate?
0:55:21 > 0:55:25I would expect the house to rent for £425 a calendar month.
0:55:25 > 0:55:29In the rental market, I think it would probably achieve around £400 per calendar month.
0:55:29 > 0:55:33How much is Kami charging his tenants?
0:55:33 > 0:55:36I'll be getting £440 for this. That's what I'll be getting.
0:55:36 > 0:55:39I get that for the rest of them so I'll get the same.
0:55:39 > 0:55:44That's going to produce a yield of over 14 percent.
0:55:44 > 0:55:45No wonder Kami's smiling.
0:55:46 > 0:55:50But what is the house now worth? He paid £27,000 at auction,
0:55:50 > 0:55:56and, with his budget of £8,400, that's a total outlay of £35,400.
0:55:58 > 0:56:02For re-sale, we'd expect it to reach £60,000.
0:56:02 > 0:56:05Re-sale for this property, I'd look at putting it on the market for offers around £65,000.
0:56:05 > 0:56:12So, that's a gross profit of between £24,600,
0:56:12 > 0:56:17and £29,600, before the usual expenses.
0:56:17 > 0:56:20That's bang on what I thought. £65,000, top end.
0:56:20 > 0:56:22So, it's not bad, is it?
0:56:22 > 0:56:25Not bad at all.
0:56:25 > 0:56:28Kami's got a great income coming in, and if he was to sell,
0:56:28 > 0:56:31he could pocket a gross profit of up to 30 grand.
0:56:31 > 0:56:36And he knows who to thank for all the hard work.
0:56:36 > 0:56:38I don't do nothing, me, to be honest.
0:56:38 > 0:56:40I just make phone calls. I go to the auction,
0:56:40 > 0:56:44or sometimes just over the phone. And that's my job, that's it.
0:56:44 > 0:56:46Get the house, and I phone the lads in. They do all the work.
0:56:46 > 0:56:49So, I can't get the credit for nothing, really, can I?
0:56:51 > 0:56:54Not enough for you? Well, there's plenty more where that came from.
0:56:54 > 0:56:58Yes. Join us next time for more Homes Under The Hammer.
0:56:58 > 0:57:00- See you then.- Goodbye.- Goodbye.
0:57:21 > 0:57:24Subtitles by Red Bee Media Ltd