0:00:02 > 0:00:04We all know that property prices can fluctuate.
0:00:04 > 0:00:07But even so, if you buy wisely,
0:00:07 > 0:00:09you can profit from property.
0:00:09 > 0:00:13One way you can do that is to head down to your local auction house.
0:00:38 > 0:00:43There are hundreds of property auctions each year, so, plenty to choose from.
0:00:43 > 0:00:49Let's take a look at which properties made our buyers part with hard-earned cash on today's show.
0:00:50 > 0:00:54'This Wimbledon one-bed's welcome is anything but warm.'
0:00:54 > 0:00:57So, straight through the front door and, er...
0:00:57 > 0:00:59straight into a wall.
0:01:00 > 0:01:06'In this end-of-terrace in County Durham, we're not on the straight and narrow.'
0:01:07 > 0:01:09I don't... That looks a bit weird.
0:01:10 > 0:01:14'And I'm in a quandary over this four-storey property in Kent.'
0:01:14 > 0:01:20Family home? No. Flats? No chance. Holiday lets? Not quite.
0:01:21 > 0:01:2320?
0:01:23 > 0:01:25'These properties were sold at auction.
0:01:25 > 0:01:30'We'll find out who bought them and what they paid for them when they went under the hammer.'
0:01:34 > 0:01:37'I'm in southwest London, Wimbledon, to be precise -
0:01:37 > 0:01:43'a bustling area with bars, restaurants and great transport links to the centre of the city.
0:01:43 > 0:01:45'It's London, but it's livable.
0:01:45 > 0:01:48'And, of course, famous for one thing.'
0:01:48 > 0:01:51# Remember you're a Womble!
0:01:50 > 0:01:51Remember you're a Womble!
0:01:51 > 0:01:53# Remember you're a Womble! #
0:01:53 > 0:01:58'Haha, only kidding! Of course, this place is famous for its tennis.'
0:01:58 > 0:02:03# Anyone for tennis? Wouldn't that be nice...? #
0:02:03 > 0:02:06The property I'm here to see
0:02:06 > 0:02:09is less than half a mile from Wimbledon Tube station
0:02:09 > 0:02:15and it's in this attractive Victorian terrace, which is perfect.
0:02:15 > 0:02:17The road's busyish and parking would be a pain,
0:02:17 > 0:02:24but for £210,000 guide price for a one-bedroom garden flat in this location?
0:02:24 > 0:02:26Huh! That's very appealing indeed.
0:02:27 > 0:02:31'You can't often net a one-bed period property
0:02:31 > 0:02:33'for under £300,000 round here.
0:02:33 > 0:02:36'This one scores extra points for being freehold.
0:02:36 > 0:02:41'So, this could be a property to... um... love!'
0:02:41 > 0:02:44So, straight through the front door and, er...
0:02:44 > 0:02:46straight into a wall.
0:02:46 > 0:02:49Nobody likes to see that!
0:02:49 > 0:02:52But that said, look at the wonderful space you've got here.
0:02:52 > 0:02:55There are lots of up-sides with this room.
0:02:55 > 0:02:59Beautiful traditional cornicing, this wonderful window area.
0:02:59 > 0:03:03It's got double glazing already. I'm not that mad keen on it.
0:03:03 > 0:03:06I would love to see some traditional sashes,
0:03:06 > 0:03:09but that will keep out the road noise and that's a bonus.
0:03:09 > 0:03:11Ooh! Look at this down here!
0:03:11 > 0:03:16Now if wooden floors are your thing, there are some superb floorboards.
0:03:16 > 0:03:19Nice and wide and in good nick.
0:03:19 > 0:03:23They would come up lovely, if you wanted to sand them down.
0:03:23 > 0:03:26There's a gas fire over here, which tells me there's no radiators,
0:03:26 > 0:03:29no central heating, so you'd have to get that sorted.
0:03:29 > 0:03:34But as far as flats go in Wimbledon, this is very positive.
0:03:36 > 0:03:40'The room will need work, but it does have good proportions.
0:03:40 > 0:03:44'Next along the corridor is the one bedroom.
0:03:44 > 0:03:48'And the ace for me is that it leads out to your very own garden.
0:03:48 > 0:03:53'15 feet of outdoor space in London is a real luxury.
0:03:53 > 0:03:56'Less luxurious is the layout at the rear -
0:03:56 > 0:03:58'a kitchen at the end of the hall,
0:03:58 > 0:04:03'which offers the only access to the bathroom and separate loo.'
0:04:03 > 0:04:05# Ain't that a shame?
0:04:06 > 0:04:08# You're the one to blame. #
0:04:13 > 0:04:18Hm, I'm not keen on this layout, but I'm also not sure which way to go with it.
0:04:18 > 0:04:23You could flip it around and move your living space to the rear,
0:04:23 > 0:04:25so you're straight out onto the garden.
0:04:25 > 0:04:29You could put the lounge where the kitchen and bathroom are.
0:04:29 > 0:04:34The kitchen in place of the bedroom and have the living room as the bedroom at the front.
0:04:34 > 0:04:38Or...keep your living room at the front.
0:04:38 > 0:04:42Open up into what is currently the bedroom next door
0:04:42 > 0:04:44and make THAT the kitchen.
0:04:44 > 0:04:47You would still have the door into the garden from the kitchen
0:04:47 > 0:04:50and a really lovely BIG open-plan space,
0:04:50 > 0:04:56but still with separate zones for cooking, dining and sitting.
0:04:56 > 0:05:01Your bedroom would be at the rear, which is away from the road, so it will be nice and quiet.
0:05:01 > 0:05:04It is a lot of work but, in this location,
0:05:04 > 0:05:08I reckon it's worth splashing the cash to transform the space.
0:05:10 > 0:05:14'You'd still have a mission finding space for the bathroom,
0:05:14 > 0:05:16'but I don't think it's impossible.
0:05:16 > 0:05:19'Once you've taken out all the partition walls in the back,
0:05:19 > 0:05:22'there's definitely space for a decent double bedroom
0:05:22 > 0:05:24'and a small bathroom.
0:05:24 > 0:05:26'It would improve the layout tenfold.
0:05:26 > 0:05:30'It wouldn't be the cheapest option, but if you could bag this pad
0:05:30 > 0:05:33'for anywhere near its £210,000 guide price,
0:05:33 > 0:05:37'you could turn it into a prize winner.
0:05:41 > 0:05:44'We invited a local estate agent round
0:05:44 > 0:05:47'to see how she felt about the flat.'
0:05:47 > 0:05:49The flat's tired,
0:05:49 > 0:05:54but it's a good structural property, a nice Victorian house.
0:05:54 > 0:05:56I feel it could be a lovely flat.
0:05:56 > 0:05:58'Could be lovely,
0:05:58 > 0:06:03'but what sort of cash would you need to splash to make it so?'
0:06:03 > 0:06:06I think you have to be careful in this market,
0:06:06 > 0:06:08how much you spend on a property.
0:06:08 > 0:06:12Personally, I think that if it was cosmetic only,
0:06:12 > 0:06:15you should really try and keep to a budget of around 10,000.
0:06:15 > 0:06:18If, however, you're going to be an owner-occupier,
0:06:18 > 0:06:23I think you could happily spend 30,000 to 40,000
0:06:23 > 0:06:25on making it really a fabulous home.
0:06:25 > 0:06:28'Before you decide what to spend,
0:06:28 > 0:06:32'you should think about how much it could be worth.'
0:06:32 > 0:06:35Once work's been carried out, I don't see any reason
0:06:35 > 0:06:40why it couldn't be marketed around about the £300,000 mark.
0:06:40 > 0:06:45'Once renovated, how would it fare rental-wise?'
0:06:46 > 0:06:51I feel that this property could achieve £1,150 per calendar month.
0:06:53 > 0:06:57Good quality first-time-buyer homes in London are in short supply.
0:06:57 > 0:07:01Young professionals, fed up of paying rents at an all-time high,
0:07:01 > 0:07:05are buying if they can, and this type of flat in this location,
0:07:05 > 0:07:10done up, would fly off the shelves before the particulars were printed.
0:07:10 > 0:07:13As an investment, I think this is a no-brainer.
0:07:13 > 0:07:16Let's see who agrees at the auction.
0:07:18 > 0:07:20Lot 70. Eh, interesting one.
0:07:20 > 0:07:23I know what my first bid would be,
0:07:23 > 0:07:25but I don't know what yours would be.
0:07:25 > 0:07:27190?
0:07:27 > 0:07:29Thank you. 190.
0:07:29 > 0:07:31195. 200.
0:07:31 > 0:07:33205, sitting down.
0:07:35 > 0:07:37I'll take it. 210, with you.
0:07:37 > 0:07:38215?
0:07:38 > 0:07:40220. 225?
0:07:40 > 0:07:42230?
0:07:43 > 0:07:47235? 240. 245?
0:07:47 > 0:07:49250.
0:07:49 > 0:07:51255, anywhere?
0:07:51 > 0:07:54255. 260?
0:07:54 > 0:07:56256?
0:07:56 > 0:07:58257, sir?
0:07:58 > 0:08:00258?
0:08:00 > 0:08:02257 down here.
0:08:02 > 0:08:05First time. Second time.
0:08:05 > 0:08:09Third and last time. If you're all done...
0:08:09 > 0:08:13BANGS GAVEL
0:08:10 > 0:08:13257, sold.
0:08:13 > 0:08:19'Successful with his £257,000 bid, £47,000 over the guide price,
0:08:19 > 0:08:24'was fledgling filmmaker Dominic, a soon-to-be Wimbledon local.
0:08:24 > 0:08:27'Which is where I met him, to get the lowdown.'
0:08:27 > 0:08:31# And just like the movies
0:08:31 > 0:08:37# We play out our last scene... #
0:08:37 > 0:08:43Dominic, it's a pleasure to meet you. I'm so excited to find out how you ended up with this flat.
0:08:43 > 0:08:46The first thing was I looked through the auction catalogue.
0:08:46 > 0:08:50I studied everything in there and I saw this place in Wimbledon.
0:08:50 > 0:08:53The first thing I thought about was Wombles!
0:08:53 > 0:08:55And then I thought about tennis.
0:08:55 > 0:09:00I remembered the time I'd been to the Wimbledon championships.
0:09:00 > 0:09:05It had taken me four hours in the pouring rain just to get to the Tube station to get home.
0:09:05 > 0:09:08I thought, "If I could get this place in Wimbledon,
0:09:08 > 0:09:12"I'd never have to do that again, so it'd be worth it!"
0:09:12 > 0:09:16- Where are you from?- I come from north London, from Hampstead.
0:09:16 > 0:09:22I'm coming down to Wimbledon, primarily, because I think it'll be closer to where I'll be working.
0:09:22 > 0:09:26What is it about Wimbledon that you love, apart from Wombles and tennis?
0:09:26 > 0:09:30There's restaurants, everything you could possibly need.
0:09:30 > 0:09:33Tube station nearby. Wow! It's in the heart of things.
0:09:33 > 0:09:38You paid over the guide price to secure this on auction day.
0:09:38 > 0:09:43- Were you happy with that? - When I thought of all of the things, it sold itself to me.
0:09:43 > 0:09:47The period features, the wide floorboards, the freehold.
0:09:47 > 0:09:50It's not a leasehold flat, which is unusual for London.
0:09:50 > 0:09:52And it's got a garden as well.
0:09:52 > 0:09:57When I went into that auction, a part of me said, "I can't let this go."
0:09:57 > 0:10:01Auction fever was always there. It might have taken over.
0:10:01 > 0:10:04But actually, I was surprised, in the end,
0:10:04 > 0:10:07that it didn't attract more attention from other bidders.
0:10:07 > 0:10:11I would probably have gone up to...280?
0:10:11 > 0:10:15- Really?- Yes. I would have gone much beyond what I got it for.
0:10:15 > 0:10:18In my view, it felt like a bit of a bargain.
0:10:18 > 0:10:22'Dominic was clear at the auction about his top price.
0:10:22 > 0:10:25'If you fall in love with a property, like he did,
0:10:25 > 0:10:28'you should try to make sure your head rules.
0:10:28 > 0:10:30'Dominic was lucky to get this place for less.
0:10:30 > 0:10:34'Now he's got it, what's he going to do with it?'
0:10:35 > 0:10:38Well, wow factor is what I'm after.
0:10:38 > 0:10:42There's lots of ideas you could try and I'll ponder all of them.
0:10:42 > 0:10:45But the one that seemed to jump out to me
0:10:45 > 0:10:50was to remove the wall that divides the bedroom and the living room,
0:10:50 > 0:10:52and make that into a kitchen-diner, for starters.
0:10:52 > 0:10:56Then in the kitchen, to make that a bedroom.
0:10:56 > 0:11:00Then to make independent access from that bedroom to the bathroom,
0:11:00 > 0:11:03and from the other rooms to the bathroom.
0:11:03 > 0:11:06Right. I'm with you. The room we're in now, currently the kitchen,
0:11:06 > 0:11:11you'd like to make into a bedroom and put a bathroom here somewhere.
0:11:11 > 0:11:16- Yes.- Is that something you're looking forward to, getting stuck into the work?- Definitely. Yes.
0:11:16 > 0:11:20I have an ulterior motive, actually, in renovating my own place.
0:11:20 > 0:11:25I find when I'm doing serious work, my mind goes into another place.
0:11:25 > 0:11:31- I get very creative and I want to use the time to write a script.- For...?
0:11:31 > 0:11:34I'm thinking of making some kind of black comedy or horror film.
0:11:34 > 0:11:36You bought this flat so you get thinking time
0:11:36 > 0:11:40- to spend on your horror film? - Exactly.- That's a first!
0:11:40 > 0:11:45I've been doing this programme a long time and nobody's ever used THAT as an excuse! I love it!
0:11:52 > 0:11:55'I hope Dominic doesn't find any hidden horrors here
0:11:55 > 0:12:00'because he has a budget of just £15,000 to tackle some major reconfiguration.
0:12:00 > 0:12:03'He's no stranger to the building trade, though,
0:12:03 > 0:12:06'as he used to run a property maintenance company.
0:12:06 > 0:12:09'So, he'll be hands-on and using all his old contacts
0:12:09 > 0:12:13'to get the work done in six months.'
0:12:13 > 0:12:16It sounds like you've got so much to look forward to.
0:12:16 > 0:12:19Are you excited to actually move in and live in Wimbledon?
0:12:19 > 0:12:23I can't put it into words. Yes. I am massively excited.
0:12:23 > 0:12:27It's been so lovely meeting you. Good luck with this project.
0:12:27 > 0:12:31- I hope your creative juices flow. - Thank you very much. I hope so, too.
0:12:33 > 0:12:37So, renovating this flat is a chance for Dominic to get creative.
0:12:37 > 0:12:39And not just with the layout.
0:12:39 > 0:12:42I'm really looking forward to seeing what he does here.
0:12:42 > 0:12:45This could be an exciting renovation.
0:12:45 > 0:12:49Join me later in the show for the premiere of this Wimbledon wonder.
0:12:52 > 0:12:56I'm in West Auckland, near Bishop Auckland in County Durham.
0:12:56 > 0:13:00This place has a charming story associated with it.
0:13:00 > 0:13:04Back in 1909, around the time of the first ever World Cup for football,
0:13:04 > 0:13:08a letter was sent out, allegedly, addressed to WAFC.
0:13:08 > 0:13:12It was supposed to go to Woolwich Arsenal Football Club,
0:13:12 > 0:13:14but instead, it came here, to West Auckland.
0:13:14 > 0:13:20The local miners and other people who were part of the football club
0:13:20 > 0:13:24got the letter and decided, "Right, we shall pool our belongings,"
0:13:24 > 0:13:28and headed down to Turin, where the competition was held.
0:13:28 > 0:13:30And, you know what? They won.
0:13:30 > 0:13:34Not only that, they returned two years later and won again.
0:13:34 > 0:13:36Isn't that fantastic?
0:13:41 > 0:13:45'That was in pre-FIFA days, of course.
0:13:45 > 0:13:50'There will, no doubt, have been celebrations on these same streets.
0:13:50 > 0:13:55'I'm looking at a property that went to auction guided at £19,950.'
0:13:55 > 0:14:00So, will the property I'm here to see prove to have a winning formula?
0:14:00 > 0:14:04This is it - a two-bedroom terrace. Let's take a look.
0:14:04 > 0:14:06So, what have we got?
0:14:06 > 0:14:09Well, through the front door and...
0:14:10 > 0:14:13I don't... That looks a bit weird.
0:14:13 > 0:14:16The frames of the doors and the angles of the ceiling,
0:14:16 > 0:14:18they're all skew.
0:14:18 > 0:14:22That could be a sign of subsidence. I'll check that out upstairs.
0:14:22 > 0:14:27Into this room, which is your main downstairs living room area.
0:14:27 > 0:14:31It's quite a nice space. Very open plan, which is good news.
0:14:31 > 0:14:35You've got a wood-burning stove or something similar.
0:14:35 > 0:14:39So we like this. Then through to the kitchen.
0:14:41 > 0:14:44Proportionally, it's just about right for the house.
0:14:44 > 0:14:47It doesn't look to be in too bad condition.
0:14:47 > 0:14:49Well, the units aren't - ish.
0:14:49 > 0:14:52Much more concerning is what you see as soon as you walk in,
0:14:52 > 0:14:57which is massive amounts of damp by the rear door.
0:14:57 > 0:15:02The floor's actually wet. More signs of damp over on that wall.
0:15:02 > 0:15:04Oh, and that wall. Right!
0:15:04 > 0:15:07So...! Oh, around the window as well.
0:15:07 > 0:15:10We've got potential subsidence and loads of damp. Um..
0:15:11 > 0:15:14Not exactly an ideal start.
0:15:14 > 0:15:20# Gonna get right down to the real nitty gritty... #
0:15:20 > 0:15:24'Yes, you'll have to get down to the nitty gritty with this property.
0:15:24 > 0:15:27'Apart from nice original features in that front room,
0:15:27 > 0:15:30'this is a place with problems.
0:15:30 > 0:15:33'It's been empty for a year and the neglect means
0:15:33 > 0:15:36'it's a fair bet that the damp is affecting the electrics.
0:15:36 > 0:15:39'So that's one job for the professionals.
0:15:41 > 0:15:44'Upstairs, this is where I wonder if the issues
0:15:44 > 0:15:47'with this two-bed end-of-terrace
0:15:47 > 0:15:51'are big in relation to its small guide price of £19,950.'
0:15:53 > 0:15:56I can't really tell without further investigation
0:15:56 > 0:15:58whether or not there's subsidence issues,
0:15:58 > 0:16:01but one thing which is undeniable
0:16:01 > 0:16:03is that there are certainly damp problems.
0:16:03 > 0:16:06Up here, it's not a bad layout.
0:16:06 > 0:16:09You've got one big bedroom at the front, a small bed at the back
0:16:09 > 0:16:12and a bathroom which is half decent in size.
0:16:12 > 0:16:15But just look at what we've got going on here.
0:16:15 > 0:16:18All the walls, it seems every corner of the property,
0:16:18 > 0:16:22there's massive damp problems, so that must lead to the roof.
0:16:22 > 0:16:26If it was solved quickly, there wouldn't be this issue,
0:16:26 > 0:16:30but it's been like this for some time, and who knows what damage has been done?
0:16:30 > 0:16:34'At the end of the landing is a cupboard, also - guess what -
0:16:34 > 0:16:37'riddled with damp.
0:16:37 > 0:16:40'The bathroom looks in reasonably good nick.
0:16:40 > 0:16:44'You could almost get away with keeping the suite that's here.
0:16:44 > 0:16:46'But, oh no! Here we go again!
0:16:46 > 0:16:52'That unmistakable little sign of... You don't need me to tell you.'
0:16:52 > 0:16:56# The leak in this old building
0:16:56 > 0:16:58# Is leaking all the time
0:16:59 > 0:17:01# Every time it rains
0:17:01 > 0:17:04# It makes me change my mind... #
0:17:05 > 0:17:11'Outside, there's a shared yard, so no outside space of your own.
0:17:11 > 0:17:15'That guttering is one of my chief suspects for causing the damp.
0:17:15 > 0:17:19'It could be blocked or cracked but until you get the damp dealt with,
0:17:19 > 0:17:22'you can't get going with the refurbishment inside.
0:17:23 > 0:17:28'We asked a local property agent along to hear her impressions.'
0:17:29 > 0:17:35The property's very close to the A68, which is a very busy road.
0:17:35 > 0:17:39It's busy 24 hours a day. It looks semi-detached, but it's not.
0:17:39 > 0:17:45It is end terrace, and that has implications for how high a price you would ever achieve
0:17:45 > 0:17:50on this as a property, however well you were to refurbish it.
0:17:51 > 0:17:53'Another negative, but let's be positive -
0:17:53 > 0:17:57'if the damp is cured and the house has a full makeover,
0:17:57 > 0:18:01'what, realistically, could it be worth?'
0:18:01 > 0:18:04If this property was refurbished to a decent standard -
0:18:04 > 0:18:07new kitchen, new bathroom, redecorated throughout,
0:18:07 > 0:18:11make sure the central heating system works and new windows, probably -
0:18:11 > 0:18:16you'd be looking, possibly, to achieve about the £45,000 mark.
0:18:16 > 0:18:20'Would a refurbishment pay dividends for a buy-to-let investor?'
0:18:22 > 0:18:27Refurbished, this property would probably let for a figure in the region of £400 per calendar month.
0:18:28 > 0:18:31Although that guide price does seem incredibly low,
0:18:31 > 0:18:36walk into the house and, yes, the layout's OK, but a lot of work to be done.
0:18:36 > 0:18:40Always remember what the ceiling price of a property around here is
0:18:40 > 0:18:44and how much it'll cost you to get this place up to scratch.
0:18:44 > 0:18:47Not an obvious one. Let's see who bought it when it went under the hammer.
0:18:47 > 0:18:51We're going down to West Auckland. No onward chain.
0:18:51 > 0:18:53Your lobby, the lounge,
0:18:53 > 0:18:55the kitchen, two beds, a bathroom.
0:18:55 > 0:18:59It's got the double glazing. It's got the gas central heating.
0:18:59 > 0:19:01We've got this in with a price guide of 19,950-plus.
0:19:01 > 0:19:06I need 18 to start. If I don't have 18, I'll pull.
0:19:06 > 0:19:09Right in the far corner at £18,000.
0:19:09 > 0:19:12Can I ask for 20 anywhere else? We've got one bid at 18.
0:19:12 > 0:19:1419 on the telephone. 20?
0:19:15 > 0:19:1720 bid. 21?
0:19:18 > 0:19:22No. I'm here at £20,000 on the left hand side.
0:19:22 > 0:19:26There's a new bidder at 21,000. 22,000?
0:19:26 > 0:19:2822 bid. 23?
0:19:28 > 0:19:3024?
0:19:30 > 0:19:3225?
0:19:32 > 0:19:35No? I'll take 500 at the back. Is it a nod?
0:19:35 > 0:19:3824 and a half bid. 25,000?
0:19:38 > 0:19:4125 at the back. 25 and a half?
0:19:41 > 0:19:47It's your last chance if you want to take 500. I'm selling at 25. Selling once at 25,000.
0:19:47 > 0:19:50For the second time at £25,000.
0:19:51 > 0:19:53Sold, left hand corner.
0:19:53 > 0:19:57'The successful bidder hidden away from view at the back of the auction
0:19:57 > 0:20:00'was James, who paid £25,000.
0:20:00 > 0:20:05'If ever a property and a buyer were meant to be, this is it,
0:20:05 > 0:20:08'because James is a roofer by trade.'
0:20:08 > 0:20:14# I need a roof over my head... #
0:20:14 > 0:20:17'This was his first auction purchase.
0:20:17 > 0:20:22'I met him at the house to find out if he's just the man to come to its rescue.'
0:20:22 > 0:20:24James, great to meet you.
0:20:24 > 0:20:26- LAUGHING:- Congratulations!
0:20:26 > 0:20:30- Why did you want to buy this place? - It's just an investment, really.
0:20:30 > 0:20:33- It's close to the pub that I drink in.- Oh, right!
0:20:33 > 0:20:37So it's an added bonus, but it's an investment for the future, really.
0:20:37 > 0:20:40- Have you done anything like this before?- No.
0:20:40 > 0:20:46I've done the house that I lived in, but I've never done a project to sell and possibly make money from.
0:20:46 > 0:20:50- So why now?- Property market's low. I can buy cheap.
0:20:50 > 0:20:55And hopefully hit the market when it's rising and make some profit that way.
0:20:55 > 0:20:59Tell me what you do when you're not doing this sort of thing.
0:20:59 > 0:21:02- Roofer.- A roofer?- Yes. - Right. What kind of roofing?
0:21:02 > 0:21:04Industrial - schools, factories.
0:21:04 > 0:21:08Are you going to bring those skills to this? Are you fairly handy?
0:21:08 > 0:21:10- Yes. I trained as an electrician. - Oh.
0:21:10 > 0:21:13So that was my main trade when I left school.
0:21:13 > 0:21:18Um... And I'm very, very handy with a hammer!
0:21:18 > 0:21:20- A-ha!- It'll come in handy here.
0:21:20 > 0:21:24# You know it's time for the hammer to fall... #
0:21:24 > 0:21:27'I'm not so sure about a hammer.
0:21:27 > 0:21:30'I think a mop would be better, to soak up the damp.
0:21:30 > 0:21:33'But James' electrical qualification and roofing skills
0:21:33 > 0:21:37'mean he'll be able to tackle a lot of the work himself.'
0:21:37 > 0:21:42- What are you going to do to sort it out?- Initially, I'll strip it back to the bare bones.
0:21:42 > 0:21:46- There's a lot of damp.- There is. - It's been neglected for a year.
0:21:46 > 0:21:49So, do that, rewire, new plumbing.
0:21:49 > 0:21:53Move the bathroom, make the bedrooms bigger.
0:21:53 > 0:21:58Basically, jazz it up. New kitchen et cetera and bathroom suite.
0:21:58 > 0:22:01There is a lot of damp. Any ideas what's causing it?
0:22:01 > 0:22:04Well, being a roofer, I've had a look at the gutters.
0:22:04 > 0:22:08They seem to be falling in the wrong direction and overflowing.
0:22:08 > 0:22:14- So what about a budget? - Budget, I'm looking at spending no more than 7,000.
0:22:14 > 0:22:18That's including solicitors' fees, so it gives us 6,000 to play with.
0:22:18 > 0:22:24I think I can keep it under that. I'm going to use the internet to purchase most of the materials.
0:22:24 > 0:22:29'James is hoping to source an ex-display kitchen and bathroom,
0:22:29 > 0:22:32'which he reckons he'll be able to pick up for around £600,
0:22:32 > 0:22:34'as opposed to a couple of grand.'
0:22:34 > 0:22:39- Anybody else helping you? - Me and the girlfriend. She's going to help as much as she can.
0:22:39 > 0:22:43- I'm not very good at tastefully decorating things.- OK.
0:22:43 > 0:22:47- What about a timescale for getting it sorted?- Two to three months.- OK.
0:22:47 > 0:22:51What's the plan? To do it up and sell it or try to rent it out?
0:22:51 > 0:22:53- I'm going to live in it first.- OK.
0:22:53 > 0:22:56- Make the most of the pub down the road.- OK!
0:22:56 > 0:23:01Hopefully, while I'm living here, I'll see what other properties are available.
0:23:01 > 0:23:04Then when I find one, I'll put this one up for sale.
0:23:04 > 0:23:07Get the next house on the back of this one.
0:23:07 > 0:23:09Then, hopefully, in about ten years,
0:23:09 > 0:23:13I'll have a house that's paid for that's mine.
0:23:13 > 0:23:15- Congratulations.- Thank you.
0:23:15 > 0:23:18- Good luck, and we look forward to seeing how you get on.- Appreciate it.
0:23:19 > 0:23:25James seems to have the skills required to sort this place out and we wish him well.
0:23:25 > 0:23:28However, I am a bit concerned that, when done up,
0:23:28 > 0:23:32it might not deliver him the returns he's hoping for.
0:23:32 > 0:23:35You can find out what happens later in the show.
0:23:36 > 0:23:40'Coming up, a puzzling Kent property with a huge plus point.'
0:23:40 > 0:23:42You cannot take away from the fact
0:23:42 > 0:23:45you've got the most corking sea view.
0:23:46 > 0:23:51'In County Durham, did this property unleash James' inner perfectionist?'
0:23:51 > 0:23:53I couldn't leave it in the state it was.
0:23:53 > 0:23:56My reputation goes before me.
0:23:57 > 0:24:02'First, in Wimbledon, did Dominic's flat prove to be his muse?'
0:24:02 > 0:24:06The screenplay came virtually within the first two weeks.
0:24:10 > 0:24:15'We're back in Wimbledon, London, where we met fledgling filmmaker Dominic.
0:24:15 > 0:24:21'He paid £257,000 at an auction for this one-bed ground floor flat
0:24:21 > 0:24:23'with a rather puzzling layout.
0:24:23 > 0:24:29'His plans - to rearrange, renovate and make this place his home.
0:24:29 > 0:24:33'He also had hopes it would serve another, more unusual purpose.'
0:24:36 > 0:24:39I have an ulterior motive in renovating my place.
0:24:39 > 0:24:42- I want to use the time to write a script.- For...?
0:24:42 > 0:24:45I'm thinking making some kind of black comedy or horror film.
0:24:45 > 0:24:48You bought this flat so you'd get thinking time
0:24:48 > 0:24:51- to spend on your horror film? - Exactly.- That's a first!
0:24:51 > 0:24:57I've been doing this programme a long time and nobody's ever used that as an excuse. I love it!
0:24:57 > 0:25:00'But just over six months since we last met,
0:25:00 > 0:25:03'will I love what Dominic's done here?
0:25:03 > 0:25:07'Has it been a fairy tale or a horror story?'
0:25:07 > 0:25:11# Don't be scared because it's just not real
0:25:11 > 0:25:14# I love the horror movies
0:25:14 > 0:25:19# Monsters and ghouls are just so groovy
0:25:19 > 0:25:23# I love the horror movies
0:25:23 > 0:25:25# I love, I love... #
0:25:25 > 0:25:28'And I do love what Dominic's done.
0:25:28 > 0:25:30'What was the kitchen is now the bedroom.
0:25:30 > 0:25:34'What was the bedroom is now the kitchen.
0:25:34 > 0:25:36'The whole place flows so much better,
0:25:36 > 0:25:38'thanks to that clever reconfiguration.'
0:25:38 > 0:25:43I'm standing in what was the bedroom when I bought the flat.
0:25:43 > 0:25:48I wanted to make the bedroom part of the living room
0:25:48 > 0:25:50and turn the bedroom into a kitchen.
0:25:50 > 0:25:54To achieve that, I took down part of what was a solid wall here
0:25:54 > 0:25:57and made that a nice large opening.
0:25:57 > 0:26:00Then blocked up what was the entrance to the hall,
0:26:00 > 0:26:04but left a space for light to come through a glass panel.
0:26:04 > 0:26:06What I got was a nice big through-space,
0:26:06 > 0:26:09nice and airy, nice and bright.
0:26:09 > 0:26:12It really got rid of that feeling of claustrophobia,
0:26:12 > 0:26:15which wasn't great when I first came into the flat.
0:26:15 > 0:26:18'He did say he wanted the wow factor
0:26:18 > 0:26:21'and I think that's just what he's got.
0:26:21 > 0:26:24'The separate bathroom and loo have had a makeover.
0:26:24 > 0:26:27'Just off them is access into the garden -
0:26:27 > 0:26:31'and what a gorgeous garden it is now!'
0:26:32 > 0:26:36# My garden, so lovely
0:26:36 > 0:26:41# So lovely, my garden... #
0:26:41 > 0:26:43'Dominic must be over the moon.'
0:26:44 > 0:26:47The garden is my favourite part of the flat.
0:26:47 > 0:26:52I've spent a lot of time there, sorting out the planting.
0:26:52 > 0:26:55The moment the grass went down, I knew I was onto a winner.
0:26:55 > 0:26:58It's just fantastic to be out there.
0:26:58 > 0:27:02I didn't realise at the time quite how important it was,
0:27:02 > 0:27:07but it's turned out to be vital to the overall scheme of things.
0:27:07 > 0:27:10'And that's not the end of the story here.
0:27:10 > 0:27:12'With dreams of writing a movie,
0:27:12 > 0:27:15'did the creative process of carving up this place
0:27:15 > 0:27:18'make him creative elsewhere?'
0:27:18 > 0:27:20I'm very pleased to say
0:27:20 > 0:27:24that the screenplay came virtually within the first two weeks.
0:27:24 > 0:27:28Just as I was knocking down the walls, all the ideas came.
0:27:28 > 0:27:32I went away, perhaps took one week off, and wrote the whole thing out.
0:27:32 > 0:27:35I got it bang on the money.
0:27:35 > 0:27:38So that was a nice by-product of doing this.
0:27:40 > 0:27:46'But was he bang on the money when it came to his renovation budget?'
0:27:46 > 0:27:50Well, I went over my original budget of 15 grand.
0:27:50 > 0:27:54It's turned out around 25,500.
0:27:54 > 0:27:57It was more than I expected to spend but, in the end,
0:27:57 > 0:27:59I'm happy with the final result.
0:27:59 > 0:28:02'So, he went over money-wise,
0:28:02 > 0:28:06'but he did the work within his six-month timescale.
0:28:06 > 0:28:12'That £25,500 budget, added to the £257,000 he paid at the auction,
0:28:12 > 0:28:18'brings his total outlay here to £282,500.
0:28:20 > 0:28:25'We invited two local property experts to have a look around.
0:28:25 > 0:28:28'One of them is seeing it for the second time.'
0:28:30 > 0:28:33I'm quite overwhelmed. What a transformation!
0:28:33 > 0:28:38It's light and airy. I can't believe the transformation that's been done
0:28:38 > 0:28:41quite simply by providing so much more light.
0:28:41 > 0:28:44It's really a lovely job he's done.
0:28:44 > 0:28:49It's a nice little flat. It's clean, tidy, bright, well proportioned.
0:28:49 > 0:28:52And quite spacious, even though it's smaller than it looks!
0:28:53 > 0:28:57'Making the place seem bigger than it is is an impressive feat.
0:28:57 > 0:29:00'Dominic bought this flat for himself to live in,
0:29:00 > 0:29:05'but if he changed his mind, could it be a healthy little earner?'
0:29:05 > 0:29:08In terms of renting, it should rent very quickly.
0:29:08 > 0:29:10About £1,200 a calendar month.
0:29:10 > 0:29:13As a rule, a one-bedroom garden flat,
0:29:13 > 0:29:18in walking distance of all the facilities in Wimbledon,
0:29:18 > 0:29:21would certainly be able to fetch about £1,000 per calendar month.
0:29:21 > 0:29:27Well, I haven't researched it, but I suppose that could be about right.
0:29:27 > 0:29:29Hope I don't have to do that!
0:29:29 > 0:29:32LAUGHS Cos I quite like the way it is.
0:29:32 > 0:29:35I'd be heart-broken if I had to see somebody else going in.
0:29:35 > 0:29:38But that's nice to know.
0:29:38 > 0:29:41'Will the sales values be just as "nice"?'
0:29:41 > 0:29:43For resale purposes,
0:29:43 > 0:29:47I would expect to achieve around £325,000 in the current market.
0:29:47 > 0:29:53I would put this property on the market right now for around about £359,000,
0:29:53 > 0:29:57looking to achieve around about 350.
0:29:57 > 0:29:59Ah! Really? OK.
0:29:59 > 0:30:03That's surprising. I wasn't quite expecting that much.
0:30:03 > 0:30:08350? Wow! That's great. At least I didn't lose any money, which is always good to know.
0:30:08 > 0:30:11'No, Dominic. You certainly didn't lose.
0:30:11 > 0:30:15'In fact, if he opted to sell, he could make himself
0:30:15 > 0:30:22'a pre-tax and expenses profit of between £42,500 and £76,500.
0:30:22 > 0:30:24'I think his love of his new home
0:30:24 > 0:30:27'means he won't be going anywhere any time soon.'
0:30:29 > 0:30:32Not at the moment, no. I don't think so.
0:30:32 > 0:30:37In every single way, it's turned out to exceed my expectations.
0:30:39 > 0:30:43This is Margate in Kent, a stunning stretch of coastline,
0:30:43 > 0:30:46but with a town that has seen better days.
0:30:46 > 0:30:50It's such a shame, because Margate has got so much to offer -
0:30:50 > 0:30:54sea, sand and gorgeous Regency terraces.
0:30:54 > 0:30:58But it's been on the up for years, without ever quite getting there.
0:30:58 > 0:31:02But maybe now, real regeneration has reached the town
0:31:02 > 0:31:04with a high-speed rail link into London
0:31:04 > 0:31:07and the arrival of the Turner Contemporary Gallery
0:31:07 > 0:31:11painting a brighter picture for the future.
0:31:11 > 0:31:15# If I were a painter
0:31:15 > 0:31:20# And could paint memories... #
0:31:20 > 0:31:23'Turner, one of Britain's foremost landscape painters,
0:31:23 > 0:31:26'was a regular visitor to Margate during the 19th century.
0:31:26 > 0:31:30'Whilst he wouldn't recognise the boutiques and gastropubs
0:31:30 > 0:31:33'beginning to spring up in the spruced-up old town,
0:31:33 > 0:31:37'the land and seascapes still weave their magic.
0:31:41 > 0:31:44'Just a few minutes from Margate town centre
0:31:44 > 0:31:47'is an area known as Cliftonville, overlooking the sea,
0:31:47 > 0:31:50'and the destination for today's auction lot.'
0:31:53 > 0:31:58The quality of light may have drawn Turner to Margate all those years ago,
0:31:58 > 0:32:02but today, what is there to attract a property developer?
0:32:02 > 0:32:04Well, there's this -
0:32:04 > 0:32:06a former Chinese restaurant on the ground floor,
0:32:06 > 0:32:10with three storeys of residential accommodation above.
0:32:10 > 0:32:12Also, a guide price...
0:32:12 > 0:32:15of 60,000 to 65,000.
0:32:15 > 0:32:19Ooh. I wonder if inside is sweet or sour.
0:32:20 > 0:32:23These premises have been closed for three years
0:32:23 > 0:32:26so it's all rather dilapidated and dirty now.
0:32:28 > 0:32:30Saying that, look at all this space!
0:32:30 > 0:32:33For a terrace, it really does go on for ever.
0:32:33 > 0:32:36There's so much space behind this counter.
0:32:36 > 0:32:38You've got loads of light coming in from there.
0:32:38 > 0:32:42This big window at the front and, whatever you think about this place,
0:32:42 > 0:32:45you cannot take away from the fact
0:32:45 > 0:32:49you've got the most corking sea view! Fantastic!
0:32:51 > 0:32:56# Go down, down to the sea
0:32:56 > 0:33:02# Down to the ocean She's calling to me... #
0:33:04 > 0:33:07'A seaside eatery lying empty makes me wonder.
0:33:07 > 0:33:09'Why has no-one else taken it on?
0:33:09 > 0:33:12'What business might work in this location?
0:33:12 > 0:33:15'Is there passing trade? Lots to research.
0:33:15 > 0:33:18'On the other hand, you can't deny the floor space on offer.
0:33:18 > 0:33:21'That ground floor restaurant area is huge.
0:33:21 > 0:33:25'That story continues upstairs on the first floor,
0:33:25 > 0:33:30'where there's a living room which stretches from front to back.
0:33:30 > 0:33:34'There's a somewhat shabby kitchen, along with a balcony,
0:33:34 > 0:33:39'which would be lovely on a sunny summer morning.
0:33:39 > 0:33:42'The bathroom is on the half landing
0:33:42 > 0:33:46'and then it's up to the second floor, where the bedrooms begin.
0:33:46 > 0:33:49'There are three here, all in need of refurbishment.
0:33:49 > 0:33:53'And then, on the very top floor, a further three rooms.
0:33:53 > 0:33:58'Wow! An epic amount of space for that £60,000 to £65,000 guide price,
0:33:58 > 0:34:01'but an epic amount of work needed.
0:34:01 > 0:34:04'So, what are the options here?'
0:34:05 > 0:34:10You might well be thinking, "Massive building! No garden!
0:34:10 > 0:34:15"Busy location. How about splitting this into separate units?"
0:34:15 > 0:34:17That is a complete non-starter,
0:34:17 > 0:34:23since the council currently have a moratorium on the creation of flats in this area.
0:34:23 > 0:34:26They feel there's an oversupply in Margate.
0:34:26 > 0:34:30With the town hoping to appeal to families and professionals in the future,
0:34:30 > 0:34:33they're unwilling to see large properties like this carved up.
0:34:33 > 0:34:39I can see the sense in this decision, but this lot would have been perfect as four units
0:34:39 > 0:34:43to, perhaps, let to young couples who don't mind lively nightlife -
0:34:43 > 0:34:46which is literally on your doorstep.
0:34:48 > 0:34:52'It's worth bearing in mind that there's a busy road,
0:34:52 > 0:34:56'a popular night club, a casino and a kebab shop nearby.
0:34:56 > 0:34:58'Great, if you're after a lively social life,
0:34:58 > 0:35:01'but it probably wouldn't attract families
0:35:01 > 0:35:04'or those looking for a relaxing holiday.'
0:35:06 > 0:35:11This property is troublesome. It doesn't quite fit any particular use.
0:35:11 > 0:35:15Family home? No. Flats? No chance.
0:35:15 > 0:35:18Holiday lets? Not quite.
0:35:18 > 0:35:23It feels like a lot that's stuck in limbo, unsure of which way to turn.
0:35:23 > 0:35:25A lot like Margate itself, in fact.
0:35:25 > 0:35:30The bones are there, but the regeneration has yet to put flesh on those bones
0:35:30 > 0:35:32and make it a popular place to be.
0:35:32 > 0:35:35But that's not to say it won't happen.
0:35:35 > 0:35:39When you have the housing stock, the views, the potential like Margate,
0:35:39 > 0:35:42I think it could only be a matter of time.
0:35:42 > 0:35:46Until then, invest your cash by all means,
0:35:46 > 0:35:49but be prepared to sit on your investment.
0:35:49 > 0:35:51Because the future is where the profit is.
0:35:51 > 0:35:56'With a guide price of £60,000 to £65,000 for this property,
0:35:56 > 0:36:00'a lot of patience and a long-term plan seem essential.
0:36:00 > 0:36:02'We asked a local property expert
0:36:02 > 0:36:06'if he could see the potential uses for this Chinese puzzle.'
0:36:08 > 0:36:10This property's quite run-down.
0:36:10 > 0:36:15It needs real tender loving care to bring it back to its former glory.
0:36:15 > 0:36:17I think this property is ideally suited
0:36:17 > 0:36:20to be turned back into a family house.
0:36:20 > 0:36:25Personally, I would lose the commercial side of the property and make it one family home again.
0:36:25 > 0:36:28I think, at the moment, the holiday let market
0:36:28 > 0:36:31wouldn't be ideally suited for this type of property,
0:36:31 > 0:36:35just because of its location with the club and kebab shop nearby.
0:36:36 > 0:36:40'We're agreed on that, and you do need to think long-term.
0:36:40 > 0:36:45'Unlike me, he doesn't have reservations about this being a family home.
0:36:45 > 0:36:48'So, on that basis, what could it be worth?'
0:36:50 > 0:36:53I think, refurbished into a four-bedroom family home,
0:36:53 > 0:36:58it's going to be worth in the region of £130,000 to £140,000.
0:36:58 > 0:37:04As a family home, You could rent it out for around about £700 per calendar month.
0:37:07 > 0:37:10I think anybody who's interested in this lot
0:37:10 > 0:37:13has to put their faith in Margate itself,
0:37:13 > 0:37:16and hope that the future is as bright as the weather.
0:37:16 > 0:37:19Let's see who that was at the auction.
0:37:21 > 0:37:24Where do you want to start me? £60,000? At 60.
0:37:24 > 0:37:28Got to be worth £60,000. Start me at 55.
0:37:28 > 0:37:3155, we're on the way. At 55. 58, now?
0:37:31 > 0:37:3558, sitting on my left. 60, it's against you. 60, it's with you.
0:37:35 > 0:37:39And two? I've got 65 behind. I'll take 67 from you, if you like.
0:37:39 > 0:37:4267. And 68? 68 I've got now.
0:37:42 > 0:37:45Make it... 80 on my right hand side.
0:37:45 > 0:37:4882? It's against both of you in the middle.
0:37:48 > 0:37:5082 I've got. 84 anywhere else?
0:37:50 > 0:37:5484,000? It's going to be sold. It's in the room. It's just who's going to buy it.
0:37:54 > 0:37:58At £82,000, sitting on my left. Make no mistake.
0:37:58 > 0:38:01For the first time at £82,000.
0:38:02 > 0:38:04For the second time at 82,000.
0:38:04 > 0:38:08If you're sure you're all done. It's going to be sold at £82,000...
0:38:08 > 0:38:11- BANGS GAVEL - It's yours, sir, at 82.
0:38:11 > 0:38:16'That successful £82,000 bid was made by property developer Geoff,
0:38:16 > 0:38:19'who owns around 25 properties in London and Kent.
0:38:19 > 0:38:23'I couldn't wait to hear about his plans for his newest purchase,
0:38:23 > 0:38:29'so dragged him away from the sunny seafront, so he could tell me all.'
0:38:29 > 0:38:31- Geoff, congratulations. - Thank you.
0:38:31 > 0:38:35- I think you got a lot of house for the money.- That's true.
0:38:35 > 0:38:38- Yes.- Why did you want to buy this in Margate?
0:38:38 > 0:38:40Because I already own the building next door
0:38:40 > 0:38:44and I know it can be transformed with the right amount of energy
0:38:44 > 0:38:47and expertise from a builder - and money, of course.
0:38:47 > 0:38:50I'm hoping that the same can be done with this.
0:38:50 > 0:38:52So you've really seen the potential.
0:38:52 > 0:38:57There's enormous potential in Margate. This is why I'm concentrating on Margate.
0:38:57 > 0:39:01Such transformation's taking place even just over the last six months.
0:39:01 > 0:39:05I think that will have a ripple effect through the rest of Margate.
0:39:05 > 0:39:11- It's going to be a slow process, but it will come about.- You loved it enough to buy another property here.
0:39:11 > 0:39:14- A Chinese restaurant's not for everybody, is it?- No.
0:39:14 > 0:39:17I don't know what I'll do with the restaurant, initially.
0:39:17 > 0:39:21I might try to contact many Chinese restaurant businesses
0:39:21 > 0:39:24around the southeast of England, but also in London
0:39:24 > 0:39:28and Chinatown itself, and try to encourage people to set up a...
0:39:28 > 0:39:33probably a noodle house format here, I think that would work best.
0:39:33 > 0:39:35What IS your plan for this building?
0:39:35 > 0:39:38Initially, I'll be concentrating on the three floors above,
0:39:38 > 0:39:42which is going to be turned into a five-bedroom holiday apartment.
0:39:42 > 0:39:45Surprisingly enough, you think, "Who wants five bedrooms?"
0:39:45 > 0:39:49But there's a lot of demand for that sort of property
0:39:49 > 0:39:54which suits a family or perhaps two families sharing a holiday together.
0:39:54 > 0:39:58But do you think this is the right location for a holiday let?
0:39:58 > 0:40:04I know you've got the sea view, but it is in between a night club and a late-night takeaway.
0:40:04 > 0:40:07- HE LAUGHS - Why do you see it as a holiday let?
0:40:07 > 0:40:09I don't think that's too big an issue.
0:40:09 > 0:40:16Being convenient to the sea and having delicious sea views more than make up for any inconvenience.
0:40:16 > 0:40:20'Geoff renovated the property next door as a holiday let,
0:40:20 > 0:40:22'so does have knowledge of the local market,
0:40:22 > 0:40:26'as well as 25 years' experience in developing.
0:40:26 > 0:40:30'But I can't help thinking the restaurant downstairs,
0:40:30 > 0:40:33'as well as the proximity to the nightlife,
0:40:33 > 0:40:35'may put holidaymakers off.
0:40:36 > 0:40:39'He's set a £20,000 to £40,000 budget.
0:40:39 > 0:40:42'I reckon he'll spend closer to the upper end of that,
0:40:42 > 0:40:45'given the sheer scale of this project.'
0:40:48 > 0:40:51- So how many bedrooms above? - I suppose we'd say five bedrooms.
0:40:51 > 0:40:53We need an extra bathroom.
0:40:53 > 0:40:56I haven't decided which room will become the extra bathroom.
0:40:56 > 0:41:01- Would you like to have turned this into three separate flats? - No, I wouldn't.
0:41:01 > 0:41:05I think I'd probably make a better return having three separate flats.
0:41:05 > 0:41:08They can be let happily enough right around the year,
0:41:08 > 0:41:12but I think it's much nicer to try and bring more people into Margate,
0:41:12 > 0:41:16more outsiders who want to sample the life of Margate!
0:41:16 > 0:41:20'I love that Geoff's enthusiasm is more about Margate than the money.
0:41:20 > 0:41:25'I'm sure he'll get just as enthused about the work to be done here.
0:41:25 > 0:41:30'There is a lot of it, and he's set a timescale of around six months
0:41:30 > 0:41:33'to get the upper three floors ready for letting.'
0:41:34 > 0:41:38I just don't see this as a holiday let.
0:41:38 > 0:41:42Unless you're a clubber with a penchant for noodles and kebabs,
0:41:42 > 0:41:45I think this is better off as a long-term rental.
0:41:45 > 0:41:48Geoff loves Margate, and passion is key to developing,
0:41:48 > 0:41:51but I hope he goes down the right route here.
0:41:51 > 0:41:53Find out what happens later in the show.
0:41:56 > 0:41:59We hope work will be well under way when we return.
0:41:59 > 0:42:03Will there be brick dust and ladders all over the place,
0:42:03 > 0:42:05or will the properties look brand new?
0:42:05 > 0:42:08Let's go back and find out.
0:42:08 > 0:42:11'Back, now, to West Auckland in County Durham,
0:42:11 > 0:42:16'a town with the proud history of winning the first football World Cup
0:42:16 > 0:42:19'twice in successive competitions.
0:42:20 > 0:42:23'James paid a startlingly low £25,000
0:42:23 > 0:42:25'for this two-bed end-of-terrace.
0:42:25 > 0:42:29'It was just as well that he was a roofer by trade,
0:42:29 > 0:42:33'as this house was wetter on the inside than the outside.
0:42:33 > 0:42:38'There was loads to do, but James definitely had the power to transform the place.'
0:42:40 > 0:42:44Are you going to bring any skills to doing this? Are you fairly handy?
0:42:44 > 0:42:46- Yes, I trained a an electrician.- Oh!
0:42:46 > 0:42:49That was my main trade when I left school.
0:42:49 > 0:42:53And I'm very, very handy with a hammer.
0:42:53 > 0:42:55# Hammer time! #
0:42:55 > 0:42:57'Well, that's always handy.
0:42:57 > 0:43:00'James had set a budget of £7,000, including his legal fees.
0:43:00 > 0:43:08'He planned to use internet auction sites to source a new kitchen and bathroom.
0:43:08 > 0:43:11'Well, five and a half months have passed,
0:43:11 > 0:43:13'and back in West Auckland
0:43:13 > 0:43:17'the outside of the house has a much smarter appearance.
0:43:17 > 0:43:20'But will it have a drier INSIDE?
0:43:23 > 0:43:28'Downstairs is certainly looking much more homely and welcoming.
0:43:28 > 0:43:33'Upstairs, the layout at the top of the stairs has changed.
0:43:33 > 0:43:37'Those cracked doors that I'd been worried about have been replaced,
0:43:37 > 0:43:40'and this super new bathroom's been created
0:43:40 > 0:43:43'by taking some space from the front bedroom.
0:43:46 > 0:43:50'The bedroom's still a good-sized double,
0:43:50 > 0:43:55'and James discovered this stone fireplace behind the plaster.
0:43:55 > 0:43:59'The new layout allowed him to knock the former bathroom
0:43:59 > 0:44:03'and second bedroom into one much more practical and larger bedroom.
0:44:05 > 0:44:10'As he explains, getting rid of the damp needed structural changes.'
0:44:10 > 0:44:14If you can remember, this used to be two rooms -
0:44:14 > 0:44:16a bedroom went this side and a bathroom behind me.
0:44:16 > 0:44:21When we took this dividing wall out, we found the roof was over-spanned,
0:44:21 > 0:44:25which means that this joist wasn't able to take the weight.
0:44:25 > 0:44:29We had to prop the ceiling up downstairs and prop this roof up.
0:44:29 > 0:44:34Then we were able to take this joist out and replace it with the correct size.
0:44:34 > 0:44:36Doing that caused another problem.
0:44:36 > 0:44:41The Velux windows weren't fitted correctly, allowing water in, causing a lot of damp.
0:44:41 > 0:44:43So when we'd fitted them correctly,
0:44:43 > 0:44:46we were able to start plastering cos everything was sound and dry.
0:44:46 > 0:44:50Being a roofer, I couldn't leave it. My reputation goes before me.
0:44:50 > 0:44:52I had to have it right.
0:44:52 > 0:44:56# Cos if you get it wrong, you'll get it right next time... #
0:44:56 > 0:44:59'This former damp house has dried out very well.
0:44:59 > 0:45:03'To cure the damp downstairs, the damp proof course needed replacing
0:45:03 > 0:45:07'and one metre of plaster had to be removed.
0:45:07 > 0:45:11'James' auction site kitchen units look great!'
0:45:13 > 0:45:15The kitchen was a GREAT deal.
0:45:15 > 0:45:19I got it from a couple who'd closed a store down in Manchester.
0:45:19 > 0:45:24500 quid, ex-display! The only thing that I've added is the work tops.
0:45:24 > 0:45:26I just wanted that bit of glitz.
0:45:26 > 0:45:28'Well, it all looks very swish...
0:45:32 > 0:45:35'..and complements the slate grey floor.
0:45:35 > 0:45:39'James has laid an oak floor in the living room,
0:45:39 > 0:45:42'and as he was removing the plaster to get rid of the damp,
0:45:42 > 0:45:45'he made another discovery.'
0:45:45 > 0:45:49Well, this lovely stone fireplace was a real surprise to us,
0:45:49 > 0:45:53an original feature we uncovered doing the damp proof course.
0:45:53 > 0:45:57It's taken a lot of time to get this and the one upstairs
0:45:57 > 0:45:59restored to the condition it is now.
0:45:59 > 0:46:03It's not perfect, but we're really pleased with it.
0:46:03 > 0:46:06'The property's right on the busy A68 road
0:46:06 > 0:46:08'to the beautiful North Pennines,
0:46:08 > 0:46:12'and the only outside space is shared with neighbouring properties.
0:46:12 > 0:46:17'Even so, James has put a new door on his shed.
0:46:17 > 0:46:20'It's taken him six months to get to this stage -
0:46:20 > 0:46:26'twice what he'd anticipated, but as he's fitting the work around his full-time job,
0:46:26 > 0:46:28'that's still good going.
0:46:28 > 0:46:34'But what about his budget? Did he manage to keep to that?'
0:46:34 > 0:46:37Well, I originally estimated it would be about 7,000.
0:46:37 > 0:46:42It's come in at just over 10,000, 10,400, but that's including fees.
0:46:42 > 0:46:47If I put MY wages in, it'd be well over, but that's the reason it's low.
0:46:47 > 0:46:52'So, James' total investment stands at £35,400.
0:46:52 > 0:46:57'Buying this place is all part of his long-term plan.'
0:46:57 > 0:47:00I'm going to be moving in for a little while.
0:47:00 > 0:47:03When I decide to move on, I will probably sell it,
0:47:03 > 0:47:06to release the equity to buy the next one.
0:47:06 > 0:47:09'We asked two local property experts along
0:47:09 > 0:47:12'to hear their verdict on how he's done.'
0:47:12 > 0:47:15The highlight of this refurbishment
0:47:15 > 0:47:17would be the bathroom, for me.
0:47:17 > 0:47:20It's been done with nice fitments and looks very modern.
0:47:20 > 0:47:23He's done a nice job on the property.
0:47:23 > 0:47:26The workmanship right the way through is to quite a good standard.
0:47:26 > 0:47:29He's kept all the original features
0:47:29 > 0:47:33and added a few luxury touches, which I think's nice.
0:47:33 > 0:47:37I think this property would appeal particularly to first-time buyers.
0:47:37 > 0:47:43To the standard that it's been done up, they would like to move in and put their own things into it.
0:47:43 > 0:47:48'If James decided to look for tenants, what could the rental income be?'
0:47:48 > 0:47:53I think this property would achieve in the region of £425 per calendar month.
0:47:53 > 0:47:58I would expect to achieve around about £425 per calendar month on this property.
0:47:58 > 0:48:03'That would achieve a yield of over 14% on James' investment.
0:48:03 > 0:48:05'Very impressive.'
0:48:06 > 0:48:08That's more than I was expecting.
0:48:08 > 0:48:13I was expecting around 400, so I'm quite pleased with that.
0:48:13 > 0:48:16'How much do the estate agents think the house could be worth?
0:48:16 > 0:48:21'More than the £35,400 that James has invested here?'
0:48:21 > 0:48:27I would put this property on the market at £75,000, because it has been done to a very high standard.
0:48:27 > 0:48:30I would value the property in the region of £75,000.
0:48:30 > 0:48:33It is higher than I expected prior to coming into the property,
0:48:33 > 0:48:36due to the size and location.
0:48:36 > 0:48:39However, having come in, the high internal specification
0:48:39 > 0:48:43does mean that I think he could achieve a slightly higher price.
0:48:43 > 0:48:48'Given it was originally projected to be worth 45,000 when renovated,
0:48:48 > 0:48:52'their amazing valuations reflect the quality of his work
0:48:52 > 0:48:56'and the improvement in the market round here since James bought it.
0:48:56 > 0:49:01'He could now make a potential pre-tax profit of £39,600!'
0:49:03 > 0:49:0775,000? Well...that's over and above what I expected.
0:49:07 > 0:49:10I was expecting to sell it for about 65,
0:49:10 > 0:49:13if that, so I'm over the moon with that.
0:49:13 > 0:49:15If I get close to it, I'll be happy.
0:49:15 > 0:49:17'I admire James' long-term vision.
0:49:17 > 0:49:23'He sees this house as a stepping stone along the way to being mortgage-free.
0:49:23 > 0:49:28'Judging by the way he's turned this previously very damp and dismal house around,
0:49:28 > 0:49:30'I reckon he's right on track.'
0:49:30 > 0:49:33I'll try and get it sold as quickly as possible.
0:49:33 > 0:49:35I'm quite happy living here until it does sell,
0:49:35 > 0:49:38then move on to the next one and move into that.
0:49:38 > 0:49:42Hopefully, do the same. That's the best news I've had this year.
0:49:42 > 0:49:45I'm over the moon. All that hard work's paid off.
0:49:47 > 0:49:53# Go down, down to the sea
0:49:53 > 0:49:59# Down to the ocean She's calling to me... #
0:50:00 > 0:50:02'We're back in Margate now.
0:50:02 > 0:50:05'Just outside the town centre lies Cliftonville,
0:50:05 > 0:50:07'where earlier I met Geoff.
0:50:07 > 0:50:10'He's a property developer who paid £82,000
0:50:10 > 0:50:14'for this huge terrace property at auction.
0:50:14 > 0:50:16'It comprised an old restaurant
0:50:16 > 0:50:21'with three floors of residential space above.
0:50:21 > 0:50:24'It came with huge amounts of renovation and restoration to do,
0:50:24 > 0:50:30'but Geoff was the ideal person to take it on.'
0:50:30 > 0:50:32Why did you want to buy this in Margate?
0:50:32 > 0:50:34I already owned the building next door
0:50:34 > 0:50:37and I know it can be transformed with the right amount of energy,
0:50:37 > 0:50:41expertise from a builder and money, of course.
0:50:41 > 0:50:43I'm hoping that the same can be done with this.
0:50:45 > 0:50:51'Experience behind him, he planned to turn the upper three floors into a five-bedroom holiday apartment.
0:50:51 > 0:50:54'We last saw him just under one year ago,
0:50:54 > 0:50:58'so have returned to see how he tackled this tricky property.
0:51:05 > 0:51:09'OK. So, not as far along as I would have liked to see,
0:51:09 > 0:51:11'but don't be fooled.
0:51:11 > 0:51:15'On the upper two floors, the plaster has been replaced throughout
0:51:15 > 0:51:18'the roof, which had some leaks, has been repaired,
0:51:18 > 0:51:21'and the paintwork's been started.
0:51:21 > 0:51:24'The biggest change, though, is on the first floor.'
0:51:24 > 0:51:28First of all, took down the wall here,
0:51:28 > 0:51:32which was separating that into a little kitchen, but far too small a kitchen.
0:51:32 > 0:51:34It was really quite grotty.
0:51:34 > 0:51:38That was quite a quick and easy job, to take down the wall.
0:51:38 > 0:51:41The really challenging work here was to level the floor.
0:51:41 > 0:51:47It had quite a sag to it because the joists weren't sufficiently strong.
0:51:47 > 0:51:50We've fitted the kitchen, mostly, as you can see.
0:51:50 > 0:51:52The sink unit needs to be put into position
0:51:52 > 0:51:56and the cooker top needs to be cut out,
0:51:56 > 0:52:00but the electrics have been done, the plumbing's been put in and it's pretty much ready to go.
0:52:00 > 0:52:05'Once it is, I think this will be a really wonderful room.
0:52:05 > 0:52:10'Before, the kitchen was tiny and no good at all for a five-bed property.
0:52:10 > 0:52:13'Also in short supply were toilet facilities,
0:52:13 > 0:52:16'as there was only one loo.
0:52:16 > 0:52:19'But Geoff's got a plan for a second one in another room
0:52:19 > 0:52:22'which has waved goodbye to a wall.'
0:52:22 > 0:52:27The major change here is there was a wall dividing the two bedrooms -
0:52:27 > 0:52:29double bedroom here, single bedroom there.
0:52:29 > 0:52:33I thought it would be good to have one main master bedroom.
0:52:33 > 0:52:37The feature's going to be an en suite bathroom in this corner.
0:52:37 > 0:52:41I think this will be a really attractive, spacious master bedroom.
0:52:41 > 0:52:45Two windows with direct sea views, as I keep on harping on about.
0:52:45 > 0:52:46So we're almost in.
0:52:46 > 0:52:51'A master bedroom with such stunning views will be a great selling point,
0:52:51 > 0:52:54'once he's in a position to start letting this.
0:52:54 > 0:52:58'He had hoped to have everything completed within six months,
0:52:58 > 0:53:02'but we're here almost 12 months on and it's not finished yet.'
0:53:03 > 0:53:08We were later starting work here than initially intended.
0:53:08 > 0:53:12The place was left virtually empty for a good four or five months.
0:53:12 > 0:53:17Just a few months ago, we started renovation work in earnest.
0:53:17 > 0:53:22So far, we've spent about four months and there's still one or two months remaining.
0:53:22 > 0:53:27It would have been nice to have made an earlier start, but different factors didn't permit that.
0:53:27 > 0:53:30'Things don't always go to plan in property development
0:53:30 > 0:53:32'so it pays to be flexible.
0:53:32 > 0:53:38'Geoff's experienced enough to know that he needs to take his time and get the job done to a good standard,
0:53:38 > 0:53:41'rather than trying to catch up and take short cuts,
0:53:41 > 0:53:44'which can cost more money later on.
0:53:44 > 0:53:50'The disadvantage of the delay is he'll miss this season's holiday rental market.
0:53:50 > 0:53:55'He may have to change his plan and rent it out on a short lease.
0:53:55 > 0:53:58'And hopes for that noodle bar are on hold for now.
0:53:58 > 0:54:02'He had planned to keep his spend to £20,000,
0:54:02 > 0:54:05'but had a contingency of up to 40.
0:54:05 > 0:54:07'How has that gone?'
0:54:08 > 0:54:12Fortunately, I think the budget's going to be well within the limit.
0:54:12 > 0:54:15At the moment, I think I've spent about £15,000.
0:54:15 > 0:54:22I think it's going to come in roughly £25,000 to £30,000, which is quite acceptable, I think.
0:54:23 > 0:54:26'Geoff purchased the property for £82,000,
0:54:26 > 0:54:30'and his max spend, when the project's done and dusted,
0:54:30 > 0:54:35'will be £30,000, making his total outlay £112,000.
0:54:36 > 0:54:41'Time to invite two local estate agents to inspect the work so far.'
0:54:41 > 0:54:44The change he's made to the layout
0:54:44 > 0:54:47is maximising the space available.
0:54:47 > 0:54:49For the purpose of what he's trying to achieve,
0:54:49 > 0:54:51I think it's a good mix.
0:54:51 > 0:54:54Making it open plan is a very good idea.
0:54:54 > 0:54:56Modern living does encourage open-plan living.
0:54:56 > 0:54:59So an open-plan kitchen-lounge is a good idea.
0:54:59 > 0:55:02I'd like to see the top two bedrooms knocked into one bedroom as well.
0:55:02 > 0:55:05Offering panoramic sea views is a really good idea.
0:55:05 > 0:55:11'That's their take on the property, but what do they think of the future financial picture?
0:55:11 > 0:55:14'Firstly, as a five-bed holiday rental,
0:55:14 > 0:55:17'how much could Geoff let it for per week?'
0:55:17 > 0:55:21I would expect him to achieve between £150 and £200 per week.
0:55:21 > 0:55:26In terms of what he could expect for a week's holiday let in high season,
0:55:26 > 0:55:29I would think, possibly, about £400 per week.
0:55:29 > 0:55:31Oh, see, that's...
0:55:31 > 0:55:34It's not 150. I don't think it's 400, either.
0:55:34 > 0:55:38I think it'll be, perhaps, 300 a week in the peak of the season.
0:55:38 > 0:55:43'That disparity in valuations comes back to very differing opinions
0:55:43 > 0:55:46'on whether this really is a suitable holiday let.
0:55:46 > 0:55:50'How about rental for the restaurant?'
0:55:50 > 0:55:56If he was to let it as a commercial property, he would expect between £8,000 and £10,000 per annum.
0:55:56 > 0:56:00I wouldn't think he would achieve any more than £5,000 per annum.
0:56:00 > 0:56:02Perhaps £5,000 if I want to let it very quickly,
0:56:02 > 0:56:08but if I'm prepared to be patient and wait up to another year, then I think more towards 10,000.
0:56:08 > 0:56:13'If Geoff were to sell the property as a whole, once finished,
0:56:13 > 0:56:18'they recommended a sale price of between £150,000 and £180,000.
0:56:18 > 0:56:22'With his total £112,000 outlay here,
0:56:22 > 0:56:28'his pre-tax and expenses profit would be between £38,000 and £68,000.
0:56:28 > 0:56:31'Sounds good to me, but what about Geoff?
0:56:31 > 0:56:35'Was he glad he took on this whopper of a property?'
0:56:35 > 0:56:39We're getting there, so on the whole, I'm very happy with it.
0:56:39 > 0:56:44I'm glad I took on the challenge and I just hope that things will continue to improve in Margate.
0:56:47 > 0:56:51That's it for today's show. Join us next time on Homes Under The Hammer.
0:56:51 > 0:56:55We'll have more intriguing properties and ambitious buyers for you.
0:56:55 > 0:56:57- See you then.- Goodbye.- Goodbye.
0:57:01 > 0:57:04Subtitles by Red Bee Media Ltd
0:57:04 > 0:57:07E-mail subtitling@bbc.co.uk