0:00:02 > 0:00:04Hello. Welcome to the show. Now, despite changing market conditions,
0:00:04 > 0:00:07people still want to get a slice of the property action.
0:00:07 > 0:00:09If you're prepared to take the plunge,
0:00:09 > 0:00:11auctions can be a great place to start.
0:00:11 > 0:00:14It can be fast, it can be frantic, but it can also be brilliant,
0:00:14 > 0:00:17buying your home under the hammer.
0:00:41 > 0:00:45Now, if you've decided to take a gamble and place
0:00:45 > 0:00:48a bet on property developing, you may want to go to the auctions.
0:00:48 > 0:00:51Mm. The atmosphere is electric.
0:00:51 > 0:00:54The action is fast and furious.
0:00:54 > 0:00:57So, here's what people bought on today's show.
0:00:57 > 0:01:00I unearth a potential treasure in London.
0:01:00 > 0:01:04These don't come along every day on the open market.
0:01:04 > 0:01:07What an opportunity for somebody!
0:01:07 > 0:01:09In Nottinghamshire, there's an auction lot
0:01:09 > 0:01:11where there's more than just a house on offer.
0:01:11 > 0:01:14It could just be enough to attract a different kind of buyer
0:01:14 > 0:01:18to this property - a developer.
0:01:18 > 0:01:20And, in the north-east town of Gateshead, it seems
0:01:20 > 0:01:23the area is definitely on the up.
0:01:23 > 0:01:25However, given this is a basement flat I'm here to see,
0:01:25 > 0:01:28I'm on the way down.
0:01:28 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:34We'll find out who bought them and what they paid for them
0:01:34 > 0:01:36when they went under the hammer.
0:01:36 > 0:01:38Sold!
0:01:41 > 0:01:45What can I tell you about Wimbledon that doesn't involve tennis?
0:01:45 > 0:01:49Well, the actor Oliver Reed was born here and Marcus Mumford,
0:01:49 > 0:01:51of Mumford & Sons, went to school here.
0:01:51 > 0:01:53# Weep for yourself, my man
0:01:53 > 0:01:57# You'll never be what is in your heart... #
0:01:59 > 0:02:02So, will the property I'm here to see be sound,
0:02:02 > 0:02:05or more of a wild card?
0:02:05 > 0:02:09It's an old adage but one that is so, so true.
0:02:09 > 0:02:12What do you want when you're looking at property?
0:02:12 > 0:02:15The worst house on the best street.
0:02:15 > 0:02:18Because then, the only way for the value to go is up.
0:02:18 > 0:02:21And the property I'm here to see, well, that's a case in point.
0:02:21 > 0:02:26Three-bedroom mid-terrace and it had a guide price of 495,000.
0:02:31 > 0:02:34Well, this is the worst house on the street.
0:02:34 > 0:02:36What a renovation job!
0:02:36 > 0:02:38Look at it! The walls have completely blown.
0:02:38 > 0:02:41You've got a pocket full of lathe and plaster here.
0:02:41 > 0:02:44Look, it's just completely crumbly.
0:02:44 > 0:02:47You can tell it's lathe and plaster because of all the old horsehair.
0:02:47 > 0:02:50The front door, nobody likes to see that.
0:02:50 > 0:02:53It's stunning yet also scary.
0:02:53 > 0:02:56You've got beautiful features like that cornicing in there.
0:02:56 > 0:02:58Big, lovely windows. But, look at this,
0:02:58 > 0:03:01years and years of layers and layers of old wallpaper.
0:03:01 > 0:03:05You've got a lovely second reception room through here.
0:03:05 > 0:03:10Again, with fireplaces. All this original wood. You can smell it.
0:03:10 > 0:03:14It's absolutely beautiful but in a right old state.
0:03:14 > 0:03:17The panelling here. Look at this!
0:03:17 > 0:03:20I would love to sand that down, really bring that back to life.
0:03:20 > 0:03:22Now, towards the back of the property,
0:03:22 > 0:03:25this is where it gets really bad.
0:03:25 > 0:03:29It stinks of damp. You can see the paper's peeling off.
0:03:29 > 0:03:32I mean, just look at that!
0:03:32 > 0:03:33This is quite interesting.
0:03:33 > 0:03:36Outside, the level is so much higher.
0:03:36 > 0:03:39And, obviously, that's where all the water's coming through -
0:03:39 > 0:03:41causing all this damp.
0:03:41 > 0:03:45This place hasn't been touched. Look at this! This is an old gas pipe.
0:03:45 > 0:03:48Many, many years old. That's where the flame would have been.
0:03:48 > 0:03:51It's stunning. You've still actually got coal out there,
0:03:51 > 0:03:54in the coal store. This would have been the scullery.
0:03:54 > 0:03:56The little sink's out here.
0:03:57 > 0:03:59It's just mind blowing to see something like this.
0:03:59 > 0:04:02You know what, these don't come along every day on the open market.
0:04:02 > 0:04:05What an opportunity for somebody!
0:04:05 > 0:04:09But properties like this could easily become an obsession
0:04:09 > 0:04:11with the heart ruling the head.
0:04:11 > 0:04:14With absolutely everything needing to be done here,
0:04:14 > 0:04:16it will need a brave soul to take it on.
0:04:16 > 0:04:17# Brave boy
0:04:17 > 0:04:19# Brave boy
0:04:19 > 0:04:22# You are fine in every way
0:04:22 > 0:04:23# Brave boy... #
0:04:23 > 0:04:26So, time for a reality check.
0:04:26 > 0:04:29Yes, the front room has a lot of character
0:04:29 > 0:04:31but also a lot of crumbling.
0:04:33 > 0:04:36The second reception room has fabulous features
0:04:36 > 0:04:39and frightening ones.
0:04:39 > 0:04:43As for the gigantic garden, it's a horticultural horror.
0:04:43 > 0:04:45It's all getting a bit scary.
0:04:45 > 0:04:48So, time to do what you should never do
0:04:48 > 0:04:50in a horror film, venture upstairs.
0:04:50 > 0:04:54Well, up here, on the half landing, I cannot quite believe
0:04:54 > 0:04:58somebody's tried to patch the ceiling up with newspaper. Look!
0:04:58 > 0:05:02It's like a quilt. There is so much going on up there.
0:05:02 > 0:05:05But it is quite reassuring to know what is going on.
0:05:05 > 0:05:09There's obviously massive leaks. Water's pouring through.
0:05:09 > 0:05:11Somebody over the years has tried to put that back together
0:05:11 > 0:05:14but it's not working and it's going to need sorting out.
0:05:14 > 0:05:18And, through here, there is daylight peeking through.
0:05:18 > 0:05:21You can see there's a hole in the roof. A little bit scary.
0:05:21 > 0:05:23Very, very daunting indeed.
0:05:23 > 0:05:26But, interestingly, it still has got those beautiful features -
0:05:26 > 0:05:29the spindles, the lovely wood that's used here.
0:05:29 > 0:05:32Not quite sure what this is. Is it holding the wall up?
0:05:32 > 0:05:34Is it holding the staircase together?
0:05:34 > 0:05:36I'll have to pass on that one.
0:05:36 > 0:05:37Really lovely bedroom.
0:05:37 > 0:05:40Two whacking great big holes in the floor boards.
0:05:40 > 0:05:41And, again, a stunning bedroom.
0:05:41 > 0:05:45Look, you've got these beautiful windows letting in lots of light,
0:05:45 > 0:05:48although the skirting board's coming apart, the floor's dipping.
0:05:48 > 0:05:50There's another great big hole over there.
0:05:50 > 0:05:54The wall's crumbling down but, hey, let's not worry.
0:05:54 > 0:05:57Because I still love it.
0:05:57 > 0:06:00# Love. Woo oo
0:06:00 > 0:06:02# Love is strange
0:06:02 > 0:06:04# Oo oo
0:06:04 > 0:06:07# Lots of people, whoa oh
0:06:07 > 0:06:11# Take it for a game... #
0:06:11 > 0:06:15You'd certainly have to be game to take on this project.
0:06:15 > 0:06:18At the rear, behind the half landing, is another bedroom,
0:06:18 > 0:06:21bathroom and a loo.
0:06:21 > 0:06:25As with everything else, all in desperate need of repair.
0:06:25 > 0:06:28This is a virtually untouched Victorian home.
0:06:28 > 0:06:32OK. It has a gaping hole in the roof, an overgrown garden
0:06:32 > 0:06:36and rotten windows, but, did I mention? I love it.
0:06:37 > 0:06:40This could be an amazing restoration project
0:06:40 > 0:06:42and there's room for expansion.
0:06:42 > 0:06:45With planning permission, the downstairs living area
0:06:45 > 0:06:48could be extended at the side or across the back of the house.
0:06:48 > 0:06:52Or you could go up into the loft where it's got a roof, of course.
0:06:52 > 0:06:56This is a project that needs a big heart and a big budget,
0:06:56 > 0:07:01even if you got it at anywhere near the guide price of £495,000,
0:07:01 > 0:07:05it could easily become a money pit.
0:07:05 > 0:07:09We asked along a local estate agent to tell us what she thought of it.
0:07:09 > 0:07:12I was very excited to come along to this road.
0:07:12 > 0:07:14Not very many properties come up here.
0:07:14 > 0:07:16I was very interested to see this one.
0:07:16 > 0:07:22Obviously it's very, very neglected. But, you've got so much scope here.
0:07:22 > 0:07:25The size of the rooms. The amount of original features here.
0:07:25 > 0:07:30The location. Obviously, it's going to be a huge project for someone
0:07:30 > 0:07:34but in the right careful hands, this could be absolutely amazing.
0:07:34 > 0:07:38But, could it see amazing financial returns?
0:07:38 > 0:07:42I think it's really worth considering extending the property.
0:07:42 > 0:07:45Both out into the garden.
0:07:45 > 0:07:50Equally so, if you were to go up another level, you would bring
0:07:50 > 0:07:54this property into a completely different level of price bracket.
0:07:54 > 0:07:57Extending this property on top of the necessary remedial work
0:07:57 > 0:08:00would be a massive undertaking.
0:08:00 > 0:08:02Would it be worth it?
0:08:02 > 0:08:05If you really went to town and extended the property, I would
0:08:05 > 0:08:09suggest you would certainly market the property round about £850,000.
0:08:09 > 0:08:11What about rental?
0:08:11 > 0:08:15I think that we would certainly market the property
0:08:15 > 0:08:22at around about £3,000 to £3,500 per calendar month.
0:08:22 > 0:08:27I don't think I need to harp on about the blindingly obvious -
0:08:27 > 0:08:29that this home needs masses of work -
0:08:29 > 0:08:32because that, to me, is the appeal.
0:08:32 > 0:08:36An unrenovated time capsule of a house that could be
0:08:36 > 0:08:40utterly beautiful and make some serious profit at the same time.
0:08:40 > 0:08:43Let's find out who went for it at the auction.
0:08:45 > 0:08:48475. It's worth that all day long.
0:08:48 > 0:08:52475? 475 standing up.
0:08:52 > 0:08:54480 in the aisle. 485.
0:08:54 > 0:08:57490. 495.
0:08:57 > 0:09:00500.
0:09:00 > 0:09:03This proved a popular lot in the auction room.
0:09:03 > 0:09:07So, we rejoin as bidding reached 585,000.
0:09:07 > 0:09:10585. Yeah?
0:09:10 > 0:09:15590. What's that? 587.
0:09:15 > 0:09:17588. 589.
0:09:17 > 0:09:21590. 590 at the back now.
0:09:21 > 0:09:23591?
0:09:23 > 0:09:28590 at the back. First time. Second time.
0:09:28 > 0:09:31Third and last time. Are you all done?
0:09:31 > 0:09:33Sold, 590.
0:09:34 > 0:09:40That successful £590,000 bid - 95 grand over the guide price
0:09:40 > 0:09:43was made by Nick, who was at the auction with his wife, Robbie.
0:09:49 > 0:09:53Nick's a chartered surveyor, dealing in commercial properties,
0:09:53 > 0:09:56and enjoys residential development as a sideline.
0:09:56 > 0:09:59Sounds like he's just the person to take on the challenge
0:09:59 > 0:10:02of this piece of Victoriana.
0:10:04 > 0:10:06Nick, congratulations!
0:10:06 > 0:10:09Was this house really worth spending nearly £100,000
0:10:09 > 0:10:12- over the guide price? - I think it was.
0:10:12 > 0:10:15At the auction, almost everything was 100,000 over the guide price,
0:10:15 > 0:10:18- if not more. - What was it about this house
0:10:18 > 0:10:20that you wanted and loved so much?
0:10:20 > 0:10:24It was a great opportunity to work with something in this condition.
0:10:24 > 0:10:28- What's your background?- I work in the commercial building environment.
0:10:28 > 0:10:32And that's... I am a surveyor by trade.
0:10:32 > 0:10:36So, I've got some advantage on that front, I hope.
0:10:36 > 0:10:38When you walked in the front door, what did you think?
0:10:38 > 0:10:41Oh, my God, what a mess! Like anyone would.
0:10:41 > 0:10:43You do think, "Oh, my God, what a mess!"
0:10:43 > 0:10:46- But then you think, "Wow, what an opportunity!"- You do.
0:10:46 > 0:10:48You also think this is going to put a lot of people off,
0:10:48 > 0:10:52so, hopefully, it's got some profit in it somewhere.
0:10:56 > 0:10:59Nick wasn't put off, as just like me,
0:10:59 > 0:11:02he focused on the real potential of this property.
0:11:02 > 0:11:04He's going to project manage the renovation
0:11:04 > 0:11:07and bring in a trusted team that he's built up
0:11:07 > 0:11:11over the last six to eight years of developing to do the work.
0:11:11 > 0:11:14So, what has he got in mind for this palatial pad?
0:11:15 > 0:11:18This needs another bedroom and bathroom.
0:11:18 > 0:11:20So, a loft conversion to get that.
0:11:20 > 0:11:24We're either going to push further out the back or out the side.
0:11:24 > 0:11:27That I'll know on Monday when I sit down with the council.
0:11:27 > 0:11:29- What would you rather do? - I'd rather go on the side.
0:11:29 > 0:11:33This needs to be a kitchen/family room. The garden is brilliant.
0:11:33 > 0:11:34You can't see it from here.
0:11:34 > 0:11:37So, you know, a glass folding door or something like that.
0:11:37 > 0:11:38You've got to do everything here.
0:11:38 > 0:11:41I don't think there's a single piece of this building
0:11:41 > 0:11:44- that won't be touched.- Why did you want to take something like this on?
0:11:44 > 0:11:48There are so many other buildings you could develop that will not
0:11:48 > 0:11:52be so intense, such hard work, and be a money pit.
0:11:52 > 0:11:55- This is going to just drain the pocket.- Absolutely!
0:11:55 > 0:11:59- I've set a budget. I know what that is.- Go on, tell me.
0:11:59 > 0:12:02- I've got 100,000 to spend on this. - 100K, that's what I was thinking.
0:12:02 > 0:12:04- Maybe more.- It needs not to be more.
0:12:04 > 0:12:08That's it. You're like, don't scare me, Lucy. 100 grand, that's it.
0:12:11 > 0:12:13Joking aside, it's good that Nick has a clear budget
0:12:13 > 0:12:16from the outset because in a house of this size,
0:12:16 > 0:12:18you could easily find yourself getting carried away
0:12:18 > 0:12:21and overspending.
0:12:21 > 0:12:25He's aiming for a 20-week timescale, which may sound ambitious
0:12:25 > 0:12:29but he's got years of experience behind him.
0:12:29 > 0:12:33Once the work's been done, he has got some decisions to make.
0:12:33 > 0:12:35Lots of options. The first one is,
0:12:35 > 0:12:37I'd like it to start washing its face.
0:12:37 > 0:12:43So, rent it. Second option is to test the market.
0:12:43 > 0:12:45And maybe sell it.
0:12:45 > 0:12:48The third option is to sell another house and move into it.
0:12:48 > 0:12:51So, it depends how much you fall in love with it, Nick.
0:12:51 > 0:12:54I like Wimbledon, I like the area. I've lived around here before.
0:12:54 > 0:12:56So, depending on how well you do this,
0:12:56 > 0:12:59there is a little cheeky chance that you might want to move in
0:12:59 > 0:13:03- with your family.- There's always a chance. I like these old houses.
0:13:03 > 0:13:06The last one we did, a total mess - similar to this.
0:13:06 > 0:13:09We were going to sell that but I'm living in it now.
0:13:09 > 0:13:11- And you're still living in it! - Still living in it.
0:13:11 > 0:13:13I cannot wait to find out whether you're going to end up
0:13:13 > 0:13:18living here with your family. Congratulations. Well done!
0:13:18 > 0:13:20So, I think there's quite a large soft spot
0:13:20 > 0:13:23in that hard developer's heart for this place
0:13:23 > 0:13:25and I'm delighted there is.
0:13:25 > 0:13:28Although Nick has a mega job on his hands,
0:13:28 > 0:13:31this could be a very special home for someone.
0:13:31 > 0:13:35Find out who's moving in later on in the programme.
0:13:41 > 0:13:44Welcome to Woodborough in Nottinghamshire -
0:13:44 > 0:13:48a charming little hamlet just over five miles from Nottingham.
0:13:48 > 0:13:52It offers great properties, surrounded by fantastic countryside.
0:13:52 > 0:13:57Well, great rural location and this is the property I'm here to see.
0:13:57 > 0:14:02It's detached, three bedrooms, at a guide price of 195,000 quid.
0:14:02 > 0:14:05Which, actually, given that it's got a large plot of land with it,
0:14:05 > 0:14:08I think is good value for money, although the auction catalogue
0:14:08 > 0:14:12does say it needs a scheme of refurbishment and repair.
0:14:12 > 0:14:15Judging by the state of the garage alone,
0:14:15 > 0:14:18I'm a bit concerned about what I might find inside.
0:14:21 > 0:14:24Uh-huh! Well, I like the layout.
0:14:24 > 0:14:27Straight through the front door, stairs up to the bedrooms
0:14:27 > 0:14:29and you've got a half decent sized corridor here
0:14:29 > 0:14:31with lovely parquet flooring. Clean that up
0:14:31 > 0:14:34and it would look amazing. Front room there.
0:14:34 > 0:14:38Open fire. Very 1930s fireplace. We like that.
0:14:38 > 0:14:40No, really, I could live with that, for sure.
0:14:40 > 0:14:44Kitchen at the back here, very small for the size of house.
0:14:44 > 0:14:45It's sort of just tucked away.
0:14:45 > 0:14:48I'm thinking straight away knock down this wall, or at least
0:14:48 > 0:14:53put some kind of archway in to create a lovely kitchen/living area.
0:14:53 > 0:14:56This is room at the moment - this rear living area -
0:14:56 > 0:14:58I'm not quite sure what you'd use this for.
0:14:58 > 0:15:01So, yes, knock that through. A really nice-sized space, then.
0:15:01 > 0:15:04Because you'd then have a great set of double doors,
0:15:04 > 0:15:08Out into this little conservatory area - where the boiler is -
0:15:08 > 0:15:10very odd. But straight out into the garden, as well.
0:15:10 > 0:15:13This would be an absolutely gorgeous part of the house.
0:15:13 > 0:15:15I bet you'd spend most of your time here.
0:15:17 > 0:15:18Mind you, on a day like today,
0:15:18 > 0:15:22this conservatory really is looking a little sad, and much like
0:15:22 > 0:15:26the rest of the house is in desperate need of some tender loving care.
0:15:27 > 0:15:32# Try a little tenderness... #
0:15:33 > 0:15:37This place has been treated with anything but tenderness.
0:15:37 > 0:15:41It's been empty for six years and has been vandalised.
0:15:41 > 0:15:43So, it really is quite a sad sight.
0:15:43 > 0:15:47On top of that, it's obviously not wind or water-tight,
0:15:47 > 0:15:51and, inside, it feels as cold and damp as the weather outside today.
0:15:54 > 0:15:58I'm just hoping upstairs might raise my spirits.
0:15:58 > 0:16:02# Candy You're the girl I can't forget
0:16:02 > 0:16:06# Though we've hardly ever met
0:16:06 > 0:16:09# I've always longed to hold you... #
0:16:09 > 0:16:12Well, the candy pink wallpaper might be meant to create cheer
0:16:12 > 0:16:15but it's not really doing it for me.
0:16:15 > 0:16:17But, on a sweeter note, the layout is good
0:16:17 > 0:16:19and the bathroom's a decent size.
0:16:19 > 0:16:22And, it's upstairs, which is always a plus.
0:16:22 > 0:16:27There are worrying cracks and, of course, the ubiquitous damp.
0:16:27 > 0:16:32I think there's quite a lot to chew over before anyone takes this on.
0:16:32 > 0:16:34For me, the best thing size-wise about this property
0:16:34 > 0:16:36is this huge garden.
0:16:36 > 0:16:40You're also surrounded by plenty of wonderful, open, outside space.
0:16:42 > 0:16:45Well, you certainly can't complain about the rural location
0:16:45 > 0:16:48of the property. Just these three houses
0:16:48 > 0:16:51and then pretty much nothing all around.
0:16:51 > 0:16:53You've got the property itself
0:16:53 > 0:16:55and then something, which is really quite exciting.
0:16:55 > 0:16:58Up this little lane here, you have this area here -
0:16:58 > 0:17:01it's an orchard behind this hedge.
0:17:01 > 0:17:03About half an acre.
0:17:03 > 0:17:05More importantly, you've got this right of access
0:17:05 > 0:17:07to the rear of the property.
0:17:07 > 0:17:09Why is that exciting? It's nice to have your own orchard
0:17:09 > 0:17:12but, is there a potential for that
0:17:12 > 0:17:14to become something like a building plot?
0:17:14 > 0:17:16Mm. It's certainly big enough.
0:17:16 > 0:17:18We are in green belt land though
0:17:18 > 0:17:21so, would you get planning permission for houses?
0:17:21 > 0:17:22Highly unlikely at the moment.
0:17:22 > 0:17:25You might buy it with a hope that in the future that might change.
0:17:25 > 0:17:29In the meantime, it could just be enough to attract
0:17:29 > 0:17:32a different kind of buyer to this property - a developer.
0:17:35 > 0:17:38So, all sorts of people would have been attracted to this lot.
0:17:38 > 0:17:41For the 195,000 guide price,
0:17:41 > 0:17:44you'd get a big house, an even bigger garden
0:17:44 > 0:17:46and your very own orchard -
0:17:46 > 0:17:49all of which need to be brought back to life.
0:17:51 > 0:17:55We asked a local estate agent to cast his eye over it
0:17:55 > 0:17:57and tell us what he thought.
0:17:57 > 0:17:59This property's great.
0:17:59 > 0:18:01It offers bags of potential for somebody to come along
0:18:01 > 0:18:03and put their own mark on it.
0:18:03 > 0:18:06It's a very traditional styled family home
0:18:06 > 0:18:09that would benefit from a scheme of improvement
0:18:09 > 0:18:13and maybe an extension to either the rear, the side or even both.
0:18:13 > 0:18:17It's a great canvas for someone to put their own mark on it.
0:18:17 > 0:18:20What kind of return could you expect on any money spent
0:18:20 > 0:18:24doing this place up? Let's start with the potential rental value.
0:18:24 > 0:18:26Following a scheme of improvements,
0:18:26 > 0:18:28if this property were offered to the rental market,
0:18:28 > 0:18:32I think it would achieve a rent of £900 per calendar month.
0:18:32 > 0:18:35This property offers all sorts of options,
0:18:35 > 0:18:38just what could its potential value be?
0:18:38 > 0:18:42Following a scheme of improvements, I think this house could be worth
0:18:42 > 0:18:46somewhere in the region of £270,000, as one dwelling.
0:18:46 > 0:18:52Should a potential purchaser explore the possibilities of building
0:18:52 > 0:18:56additional dwellings to the rear, that could be considerably more.
0:18:56 > 0:18:58Well, it's a good location
0:18:58 > 0:19:01and a property with absolutely bags of potential.
0:19:01 > 0:19:04Yes, it will need quite a lot spending on it to get it sorted out
0:19:04 > 0:19:07but with that land around it, and just the character
0:19:07 > 0:19:10of the place, I think it's a really exciting one to see developed.
0:19:10 > 0:19:13Let's find out who bought it when it went under the hammer.
0:19:15 > 0:19:17Lot 47. 195.
0:19:17 > 0:19:20195 I have as a starting bid.
0:19:20 > 0:19:22£200,000. Five.
0:19:22 > 0:19:25205. 210, sir.
0:19:25 > 0:19:29210. 215. 215. 220.
0:19:29 > 0:19:33It's against you at £220,000.
0:19:33 > 0:19:3621. 21. 22.
0:19:36 > 0:19:40223. 224.
0:19:40 > 0:19:4325. 225. 226.
0:19:43 > 0:19:4727. 28. 29.
0:19:47 > 0:19:51229. Out! Or is that a half? Out!
0:19:51 > 0:19:54229. £229,000.
0:19:54 > 0:19:58Going once, twice, third time.
0:19:58 > 0:20:01Sold. It's yours, sir. 229,000.
0:20:04 > 0:20:08That successful £229,000 bid came from Terry,
0:20:08 > 0:20:11who attended the auction with his neighbour.
0:20:12 > 0:20:17As well as running his own car repair business and MOT station,
0:20:17 > 0:20:20he also has a few properties that he lets.
0:20:20 > 0:20:22But, as I discovered, Terry and his family -
0:20:22 > 0:20:27one of whom is his daughter Billie here - have their own special reasons
0:20:27 > 0:20:30for wishing to get their hands on this particular place.
0:20:30 > 0:20:33- Terry, good to meet you. - Good to meet you.- Congratulations!
0:20:33 > 0:20:36- Thank you very much.- Tell me why you wanted to buy this place?
0:20:36 > 0:20:40My property surrounds the orchard at the back.
0:20:40 > 0:20:42And anybody could have bought it.
0:20:42 > 0:20:44- They could have built some houses on the back.- Right!
0:20:44 > 0:20:46How would that have affected you if they had?
0:20:46 > 0:20:49I'd lose my right of way, which I didn't really want.
0:20:49 > 0:20:54- It just encroached on my privacy really.- We're in a very rural area.
0:20:54 > 0:20:57- How long have you lived here for? - 31/2 years.
0:20:57 > 0:21:00Presumably, the rural nature and the peace and quiet
0:21:00 > 0:21:04- was something which attracted you in the first place.- It was, yeah.
0:21:04 > 0:21:08You must have gone to the auction fairly determined then.
0:21:08 > 0:21:10- Yeah, I was determined to have it, yeah.- At any price?
0:21:10 > 0:21:13- Yeah, just about.- Really! - Just about, yeah.
0:21:13 > 0:21:15What do you think about what you paid for it in the end?
0:21:15 > 0:21:17I paid too much money, there's no doubt about it.
0:21:17 > 0:21:19I paid a little bit too much money.
0:21:19 > 0:21:21But to have the peace of mind
0:21:21 > 0:21:25and nobody else living here in the orchard, is good.
0:21:25 > 0:21:28You say nobody else living here.
0:21:28 > 0:21:30It's a house. What are you going to do with it?
0:21:30 > 0:21:32There'll be somebody living in this house
0:21:32 > 0:21:35but there'll be nobody living in my orchard, will there?
0:21:35 > 0:21:38- So, is the idea to rent this bit out? - It is, yeah.
0:21:39 > 0:21:42Terry lives in a nearby property.
0:21:42 > 0:21:47Although spending £229,000 may seem expensive just for peace of mind,
0:21:47 > 0:21:50he clearly thinks it's worth it.
0:21:50 > 0:21:54Of course, he also hopes to make the house work for him financially too.
0:21:54 > 0:21:58He keeps these beautiful horses, which his daughter, Billie,
0:21:58 > 0:22:00helps to look after.
0:22:00 > 0:22:03With the family's quiet rural lifestyle here,
0:22:03 > 0:22:05you can see why they wanted to keep it like that.
0:22:06 > 0:22:11However, he certainly won't be able to keep his new house as it is.
0:22:11 > 0:22:14Tell me what you're going to do to the house to sort it out?
0:22:14 > 0:22:18Get it all stripped out for a start. All the repairs will be done.
0:22:18 > 0:22:23I'll put a new stone fireplace in here. A log burning stove.
0:22:23 > 0:22:26Revamp the kitchen. Knock the conservatory down.
0:22:26 > 0:22:30Rebuild the garage. I'm going to spend probably 15 grand on it,
0:22:30 > 0:22:33which takes it far over budget really.
0:22:33 > 0:22:37- But, it don't really matter. - Right! Because?
0:22:37 > 0:22:41I've got the house and the orchard, haven't I? That's what I wanted.
0:22:41 > 0:22:45And, perhaps, you can't put a price on that.
0:22:45 > 0:22:48He's set a six to eight week timescale
0:22:48 > 0:22:52although I do think he'll find that £15,000 budget tight,
0:22:52 > 0:22:54particularly as replacing the decrepit bathroom
0:22:54 > 0:22:57didn't appear on his list.
0:22:59 > 0:23:02Terry will do a lot of the work himself and already knows
0:23:02 > 0:23:06professional tradesmen he can hire in for the rest.
0:23:06 > 0:23:09While I was here, I was keen to see more of the land
0:23:09 > 0:23:12Terry was so determined to protect.
0:23:12 > 0:23:15So, this area here is owned by the property.
0:23:15 > 0:23:18- That's the orchard you're talking about?- Yeah.
0:23:18 > 0:23:21The likelihood of that being really converted into properties, though?
0:23:21 > 0:23:26Well, they're building a wind turbine 217 ft in greenbelt
0:23:26 > 0:23:31down in the valley, so...you never know, do you?
0:23:31 > 0:23:33- You never know. - It would always have sort of...
0:23:33 > 0:23:36It would have played on my mind really that if somebody bought it
0:23:36 > 0:23:37- they could have done that.- Right!
0:23:37 > 0:23:40So, what are you going to do with that bit of land?
0:23:40 > 0:23:42I don't really know. Clear it up.
0:23:42 > 0:23:45Probably put a big pond in it and put some ducks on it.
0:23:45 > 0:23:47And that's about it really.
0:23:47 > 0:23:50There's not a lot you can do with a scruffy old orchard,
0:23:50 > 0:23:52apart from tidy it all up, and make it look nice.
0:23:52 > 0:23:57But you've almost created a sort of a moat of land around your property.
0:23:57 > 0:24:02Yeah. That's just what I wanted, really. Probably a bit selfish.
0:24:02 > 0:24:07But, as I said before, I didn't want nobody in my space, really.
0:24:08 > 0:24:11- And you're going to get the rental income from the property.- Yeah.
0:24:11 > 0:24:14Well, congratulations, good luck!
0:24:14 > 0:24:17I'll look forward to seeing how you get on.
0:24:17 > 0:24:20So, what price privacy?
0:24:20 > 0:24:25Well, in Terry's case, it was worth nearly £250,000 to him
0:24:25 > 0:24:28to make sure that nobody does something untoward
0:24:28 > 0:24:31with his orchard and the area around his house.
0:24:31 > 0:24:35Lots of work to be done. Can it be done for about £15,000?
0:24:35 > 0:24:37You can find out later in the show.
0:24:38 > 0:24:41Coming up in the North East town of Gateshead,
0:24:41 > 0:24:45there's a property that, um, puts a spring in my step.
0:24:45 > 0:24:47Some very dodgy floorboards.
0:24:49 > 0:24:54Back in Nottinghamshire, it seems Terry's been splashing the cash.
0:24:54 > 0:24:56Way over budget but I'm not particularly bothered
0:24:56 > 0:24:59because it looks so good.
0:25:00 > 0:25:04But first we return to London where Nick hasn't held back on his spending either.
0:25:04 > 0:25:08The room you're seeing is known as the £50,000 room.
0:25:13 > 0:25:17We're wending our way back to Wimbledon, where earlier we met Nick.
0:25:17 > 0:25:21He'd gone £95,000 over the guide price to purchase
0:25:21 > 0:25:26this three-bedroom Victorian terrace for 590,000 at the auction.
0:25:29 > 0:25:32I absolutely loved this place, though it wasn't going to be news
0:25:32 > 0:25:36to anyone that it needed a total renovation.
0:25:36 > 0:25:39But Nick was game for the challenge.
0:25:39 > 0:25:42- When you walked in the front door, what did you think?- Oh, my God!
0:25:42 > 0:25:44What a mess! Like anyone would.
0:25:44 > 0:25:46You do think, "Oh my God, what a mess!"
0:25:46 > 0:25:49- But then you think, "Wow, what an opportunity!"- You do.
0:25:49 > 0:25:51You also sort of think, this is going to put a lot of people off.
0:25:51 > 0:25:55So, hopefully, it's got some profit in it somewhere.
0:25:55 > 0:25:58I think there definitely was potential profit here
0:25:58 > 0:26:01if the right work was done, of course.
0:26:01 > 0:26:03Nick's plan was to have the whole place finished
0:26:03 > 0:26:07with the help of his usual team in 20 weeks.
0:26:07 > 0:26:10Now we're back, six months after we first met Nick,
0:26:10 > 0:26:14to see if he was, um, victorious.
0:26:48 > 0:26:52Now that's what I call a transformation!
0:26:52 > 0:26:56There's not a broken floorboard or damp patch in sight.
0:26:56 > 0:26:57And best for last.
0:26:57 > 0:27:00Where once there was a sink and coal cellar,
0:27:00 > 0:27:03there's now a stunning new kitchen.
0:27:10 > 0:27:12This is certainly much bigger than just the two rooms
0:27:12 > 0:27:15that were here before.
0:27:15 > 0:27:18Originally, the house finished about here
0:27:18 > 0:27:21and then there was a coal bunker round the back section.
0:27:21 > 0:27:24So, all of that's gone.
0:27:24 > 0:27:28We pushed out for a side extension right away along the bank
0:27:28 > 0:27:31and then a rear end-to-end,
0:27:31 > 0:27:34which gave us enough space to put the kitchen in.
0:27:34 > 0:27:37The kitchen itself is high-gloss throughout -
0:27:37 > 0:27:39nice solid surface tops.
0:27:39 > 0:27:43Under floor heating. Plenty of units. It's a nice place.
0:27:43 > 0:27:45It would be the heart of the house, really.
0:27:45 > 0:27:47The kitchen itself is about 10,000.
0:27:47 > 0:27:50The room that it's in is known as the £50,000 room,
0:27:50 > 0:27:52because that's where all the expenditure is.
0:27:52 > 0:27:54# Oo, money, money.
0:27:54 > 0:27:55# Want your money, money?
0:27:55 > 0:27:59# Give me that dirt, deniro... #
0:27:59 > 0:28:02Which gives me the answer to my next question.
0:28:02 > 0:28:05Nick had set a budget of £100,000
0:28:05 > 0:28:08and half of that's been spent on the extension and kitchen.
0:28:08 > 0:28:11When we first met, he'd said that the total spend
0:28:11 > 0:28:15couldn't be over that £100,000.
0:28:15 > 0:28:19It was. Um, total spend was 118.
0:28:19 > 0:28:22The choices were really,
0:28:22 > 0:28:25some of them were needed, and some were mine.
0:28:25 > 0:28:28So, the overspend's about 50/50.
0:28:28 > 0:28:31Probably £10,000 worth of my choices.
0:28:31 > 0:28:34It didn't need wood floors all the way through. Didn't need five Veluxes.
0:28:34 > 0:28:37Didn't need LED lighting but I think it was worth it
0:28:37 > 0:28:39and there was about eight, nine grand's worth
0:28:39 > 0:28:42of additional roof work and steelwork.
0:28:42 > 0:28:45So, over budget but happy.
0:28:45 > 0:28:49The roof work carried out wasn't just essential for saying goodbye
0:28:49 > 0:28:52to the leaks and holes, but also because downstairs
0:28:52 > 0:28:55isn't the only place that's had an extension.
0:28:55 > 0:28:59Nick has also utilised what was dead loft space to create
0:28:59 > 0:29:03an additional bedroom with an en suite and dressing room.
0:29:06 > 0:29:09Initially, Nick loved this house and thought he might move in
0:29:09 > 0:29:12with his family but he changed his mind.
0:29:12 > 0:29:14Instead, he's transformed it
0:29:14 > 0:29:18into a very modern, sleek and marketable family home.
0:29:18 > 0:29:21So, did he change any of the original period features?
0:29:21 > 0:29:24They've all gone. All of them.
0:29:24 > 0:29:28When we made the decision to go for rental,
0:29:28 > 0:29:31we thought we'd go for a more contemporary feel,
0:29:31 > 0:29:33so we went with new windows throughout.
0:29:33 > 0:29:36We then decided to pull all the cornicing out, as well,
0:29:36 > 0:29:38and keep everything straight lines.
0:29:42 > 0:29:45I can't deny I'm sorry to see those fireplaces
0:29:45 > 0:29:48and period features go, but they wouldn't have been cheap
0:29:48 > 0:29:53to restore or replace, and Nick had to keep his bottom line in mind.
0:29:53 > 0:29:56He had also set what sounded like an ambitious
0:29:56 > 0:29:59but unnecessarily strict 20-week timescale.
0:29:59 > 0:30:02How did that pan out?
0:30:02 > 0:30:05The build work was done in 18 and the finishing's five,
0:30:05 > 0:30:08so we've gone three weeks over.
0:30:08 > 0:30:12You go for a higher spec out the back, it takes longer to do.
0:30:12 > 0:30:16So, a little over deadline but Nick seems perfectly happy about that
0:30:16 > 0:30:19given the quality of the end result.
0:30:19 > 0:30:21And so he should be.
0:30:21 > 0:30:23For the amount of work done,
0:30:23 > 0:30:26it's still an extremely impressive turnaround.
0:30:27 > 0:30:31The cost of the property at the auction was 590,000.
0:30:31 > 0:30:34For the renovation, £118,000.
0:30:34 > 0:30:38Making the total spend on this project 708,000.
0:30:41 > 0:30:43So, it's the moment of truth.
0:30:43 > 0:30:45We invited two local estate agents to the house -
0:30:45 > 0:30:50one of whom had seen it before work started.
0:30:50 > 0:30:51Absolutely beautiful!
0:30:51 > 0:30:56Outstanding! The finish is just unbelievable.
0:30:56 > 0:30:57What a lovely, lovely house.
0:30:57 > 0:31:00As soon as I walked in, I saw the floor
0:31:00 > 0:31:02and the finish is absolutely fantastic.
0:31:02 > 0:31:05Then, the view that takes you through to the back rear garden
0:31:05 > 0:31:08and you see the actual kitchen and the layout is absolutely superb.
0:31:08 > 0:31:12And that quality flows throughout the house. Absolutely fantastic!
0:31:12 > 0:31:15I think the loft conversion is absolutely great.
0:31:15 > 0:31:17For any lady to have a dressing room as well as an en suite,
0:31:17 > 0:31:19has got to be heaven.
0:31:19 > 0:31:21They love the place.
0:31:21 > 0:31:23But will the value reflect Nick's spend here?
0:31:23 > 0:31:25If I had to put the property on the market for sale,
0:31:25 > 0:31:28I'd expect it to achieve £850,000.
0:31:28 > 0:31:32I think this will easily achieve £850,000.
0:31:32 > 0:31:36I think you could even put it on for found about £875,000
0:31:36 > 0:31:37and see what happens.
0:31:37 > 0:31:41Higher than I thought. So, very happy if that's the case.
0:31:41 > 0:31:43At the moment, I'm still staying with rental
0:31:43 > 0:31:48but good to know where the finish line is if we need to sell.
0:31:48 > 0:31:51That finish line would make Nick a pre-tax and expenses profit
0:31:51 > 0:31:56of between 142,000 and 167,000.
0:31:56 > 0:31:58But his plan is to let it.
0:31:59 > 0:32:03Per calendar month, I'd expect this property to achieve £2,800.
0:32:03 > 0:32:07I think this property will easily achieve £3,000 per calendar month.
0:32:07 > 0:32:11I think that's exactly what it should be, so, really happy.
0:32:11 > 0:32:13Overall it's a good result for us.
0:32:13 > 0:32:14It sure is.
0:32:14 > 0:32:17And the property has been put on the rental market already.
0:32:17 > 0:32:20Having decided not to move in himself,
0:32:20 > 0:32:22will Nick be sad to say goodbye?
0:32:22 > 0:32:25Particularly to THAT kitchen.
0:32:26 > 0:32:29The £50,000 room has become the joke of all my friends.
0:32:29 > 0:32:31We're quite proud of it.
0:32:31 > 0:32:34I think, before someone moves in, we might even use it.
0:32:39 > 0:32:42Gateshead on the southern bank of the River Tyne is benefiting
0:32:42 > 0:32:45from a major regeneration programme.
0:32:45 > 0:32:48I, for one, can't wait to see what's yet to come.
0:32:48 > 0:32:51All that investment is having a welcome knock-on effect,
0:32:51 > 0:32:55not just on the city centre, but also on the surrounding areas, as well.
0:32:55 > 0:33:00With the street getting a facelift, the property is being spruced up.
0:33:00 > 0:33:04Well, today, I'm in the Bensham area of Gateshead.
0:33:04 > 0:33:06It's very popular with investors
0:33:06 > 0:33:10because house prices tend to be low and yet rental demand is high.
0:33:10 > 0:33:13There has been a lot of improvement recently.
0:33:13 > 0:33:16You can see those houses there have been really nicely done up.
0:33:16 > 0:33:21Sadly, the property I'm here to see wasn't part of those improvements.
0:33:21 > 0:33:23In general, the area is on the up.
0:33:23 > 0:33:25However, given this is a basement flat I'm here to see,
0:33:25 > 0:33:28I'm on my way down.
0:33:28 > 0:33:30# Down in a basement
0:33:30 > 0:33:33# Where can you go when your money is low?
0:33:33 > 0:33:35# In the basement... #
0:33:35 > 0:33:37The guide price was £20,000.
0:33:37 > 0:33:40So, could this be a bargain basement?
0:33:40 > 0:33:44So, in through the front door and one of the first things
0:33:44 > 0:33:47we're going to be looking out for - given it's a basement flat -
0:33:47 > 0:33:49is any sign of damp.
0:33:49 > 0:33:51They are fairly prone to it.
0:33:51 > 0:33:55You don't have to go very far up, by the electricity meter there,
0:33:55 > 0:33:58some major signs of problems.
0:33:58 > 0:34:01And, even just looking down at the skirting boards,
0:34:01 > 0:34:05you can see signs of that dreaded damp.
0:34:05 > 0:34:07But, it certainly doesn't feel pokey
0:34:07 > 0:34:10when you come through the front door. Nice, high ceilings.
0:34:10 > 0:34:13Look at that for a bedroom!
0:34:13 > 0:34:16Absolutely huge. So, that's really good.
0:34:16 > 0:34:18Down this corridor, the second bedroom there.
0:34:18 > 0:34:20That's a half decent size too.
0:34:20 > 0:34:23So, in terms of the feeling of the place, with the high ceilings
0:34:23 > 0:34:27and everything, it does give it a lovely feeling of space.
0:34:27 > 0:34:32Through the property, on the walls, a few more tell-tale signs of damp.
0:34:32 > 0:34:37And actually more than any of that, the smell.
0:34:37 > 0:34:40It smells damp. That is a real giveaway.
0:34:40 > 0:34:43How much damage has been done I don't know.
0:34:43 > 0:34:45But, rear sitting room area here.
0:34:45 > 0:34:47Quite an interesting layout of this flat
0:34:47 > 0:34:50because it is basically a basement flat on the front there.
0:34:50 > 0:34:53As you come to the rear of the property, it turns into
0:34:53 > 0:34:56a ground floor flat, because of the slope of the land round here.
0:34:56 > 0:34:59In terms of the layout again, through there, into this, the kitchen.
0:34:59 > 0:35:03It's not huge. It really does need a bit of tender loving care.
0:35:03 > 0:35:07Even worse, through here too, what is basically the only bathroom,
0:35:07 > 0:35:09of course, in the flat. It's right at the back here.
0:35:09 > 0:35:12You access it off the kitchen, so it's not ideal.
0:35:12 > 0:35:15That said, apart from the damp,
0:35:15 > 0:35:19I think this has the potential to be a really cracking flat.
0:35:21 > 0:35:24Yes, there are many things here that are far from ideal
0:35:24 > 0:35:26and it will need some work.
0:35:26 > 0:35:30But, for that £20,000 guide price, in an area that's on the up,
0:35:30 > 0:35:33I think you get a lot of flat for the money.
0:35:33 > 0:35:36As it's the bottom flat, it also comes with the added bonus
0:35:36 > 0:35:39of an outside area - albeit just a yard.
0:35:39 > 0:35:41But there's also access to the rear
0:35:41 > 0:35:44and, potentially, more car-parking space.
0:35:44 > 0:35:48However, the key to whether this could be a sound investment
0:35:48 > 0:35:52may depend not on what you CAN see, but what you CAN'T.
0:35:52 > 0:35:57So, you don't need a degree in building surveying,
0:35:57 > 0:35:59or a damp proof meter, to realise
0:35:59 > 0:36:01there is probably damp in this property.
0:36:01 > 0:36:04Somebody here has pulled back the carpet.
0:36:04 > 0:36:08It's revealed some very dodgy floorboards.
0:36:08 > 0:36:10That is a problem with damp. It's not just the damp walls,
0:36:10 > 0:36:13it's the fact that, basically, the joist of the floor
0:36:13 > 0:36:15going into the walls at some point, if that's damp, that rots away.
0:36:15 > 0:36:18You end up basically having to chop out and replace
0:36:18 > 0:36:20a large portion of the floor. So what is this...?
0:36:20 > 0:36:23Before I go on, look at that!
0:36:23 > 0:36:25It has affected, as I said before, the skirting boards, as well.
0:36:25 > 0:36:28What's the solution? There are specialist firms that can come along
0:36:28 > 0:36:31and sort this out no problem. There is a price to pay.
0:36:31 > 0:36:35What are the options? One is to actually what they call tank -
0:36:35 > 0:36:39which is to paint a waterproof cement or plaster mix on here -
0:36:39 > 0:36:41and that basically keeps the water out that way.
0:36:41 > 0:36:44The only problem is, where does it push the water?
0:36:44 > 0:36:46There are some more sophisticated systems
0:36:46 > 0:36:49which basically line the wall with a plastic membrane,
0:36:49 > 0:36:51which then goes down into a channel.
0:36:51 > 0:36:54The water goes down into that and then gets pumped out of the property.
0:36:54 > 0:36:55It's a more expensive solution
0:36:55 > 0:36:59but it may be a better long-term solution in general.
0:36:59 > 0:37:01Either way, it's not insurmountable.
0:37:01 > 0:37:04As long as you budget it into the cost of the renovations,
0:37:04 > 0:37:07then you shouldn't have to worry about it.
0:37:10 > 0:37:13Yes, provided it's just wet rot,
0:37:13 > 0:37:16and there are no more hidden nasties, with a bit of labour
0:37:16 > 0:37:19and the right materials, this may not be as bad as it seems.
0:37:19 > 0:37:22Overall, I think there are enough positives here
0:37:22 > 0:37:24to make the effort worthwhile.
0:37:26 > 0:37:30But what does a local estate agent think this two-bedroom basement flat
0:37:30 > 0:37:33requires to bounce up in value?
0:37:33 > 0:37:37This property is in obvious need of redecoration and some refurbishment.
0:37:37 > 0:37:41There is evidence of damp, so it needs that to be checked out.
0:37:41 > 0:37:45Double glazing would be helpful. Maybe a new kitchen and bathroom.
0:37:45 > 0:37:47General tidy up.
0:37:48 > 0:37:51If all the work was done to upgrade this flat,
0:37:51 > 0:37:55guided at 20,000, what could it be rented out for?
0:37:55 > 0:37:59I think that this property, if it was done to a high standard
0:37:59 > 0:38:01and a good quality finish,
0:38:01 > 0:38:05would expect to achieve £50,000-55,000 in today's market.
0:38:05 > 0:38:09The rental market in this area is very buoyant at this moment in time.
0:38:09 > 0:38:13I would think this flat should fetch £400 per calendar month.
0:38:14 > 0:38:17Well, it's a good sized flat.
0:38:17 > 0:38:20Certainly, for that amount of money, worth considering.
0:38:20 > 0:38:23Of course, your biggest issue is going to be sorting out the damp.
0:38:23 > 0:38:25Do that, and I think this could be a great investment.
0:38:25 > 0:38:28Let's see who agreed when it went under the hammer.
0:38:30 > 0:38:34Lot number 17. It's a two bed basement flat.
0:38:34 > 0:38:39With gas central heating. At 15 anywhere? One bid.
0:38:39 > 0:38:45The gentleman in the white shirt at £15,000. 16 anywhere else? 16. 17.
0:38:45 > 0:38:4717 bid. 18. 18 bid.
0:38:47 > 0:38:5119. 19 bid. 20. 20 bid.
0:38:51 > 0:38:5521. 21 bid. 22. 22 bid.
0:38:55 > 0:38:59You want 500? 22,500 bid. It's against you now.
0:38:59 > 0:39:01The gentleman in the white shirt at 22,500.
0:39:01 > 0:39:0423 bid. 23,500?
0:39:04 > 0:39:0823,500 in the doorway. 24?
0:39:08 > 0:39:1124 bid. 24,500? 24,500 bid.
0:39:11 > 0:39:15I'll take 250. 250 bid at 24,750.
0:39:15 > 0:39:18I'll take another 250 from yourself.
0:39:18 > 0:39:2025 bid. 25,250?
0:39:20 > 0:39:2425,250 bid. 25,500.
0:39:24 > 0:39:29No? The gentleman in the white shirt at 25,250. It's your last chance.
0:39:29 > 0:39:31Selling once at 25,250.
0:39:31 > 0:39:34For the second time at £25,250.
0:39:35 > 0:39:38Sold to the gentleman in the white shirt.
0:39:41 > 0:39:46For £25,250, the successful bidder
0:39:46 > 0:39:50for the two-bedroom basement flat in Gateshead was Stephen.
0:39:50 > 0:39:52He used to work in the financial services sector
0:39:52 > 0:39:55but, for the past ten years, has been running
0:39:55 > 0:39:57his own property development company.
0:39:57 > 0:40:00He already has an extensive portfolio of rental properties,
0:40:00 > 0:40:05all of them south of the River Tyne.
0:40:05 > 0:40:08Stephen, good to meet you. Congratulations!
0:40:08 > 0:40:11Tell me why you wanted to buy this flat?
0:40:11 > 0:40:14I've just done a big house along the road in this street
0:40:14 > 0:40:18and just on the off chance. I went to the auction.
0:40:18 > 0:40:22The price was so good, I couldn't not.
0:40:22 > 0:40:25- You've already got some properties already then?- Yeah.
0:40:25 > 0:40:28A portfolio of approximately 35.
0:40:28 > 0:40:32I started the company in 2002. This is the 10th year of the company.
0:40:32 > 0:40:36Some interesting times over that period.
0:40:36 > 0:40:38Yeah, we're in an interesting time now.
0:40:38 > 0:40:41The last four years have been tough.
0:40:41 > 0:40:43What do you think this would have been worth
0:40:43 > 0:40:47in the height of the sort of post-2008?
0:40:47 > 0:40:49I own three flats on the street behind.
0:40:51 > 0:40:54And, the cheapest of those three flats was nearly double
0:40:54 > 0:40:58- what I paid for this.- When was that?
0:40:58 > 0:41:01- Seven or nine years ago.- Right!
0:41:01 > 0:41:04You paid double what you paid for this now.
0:41:04 > 0:41:07You can see why Stephen thought this flat was such good value.
0:41:07 > 0:41:10The flip side to this, of course, is that the flats he bought
0:41:10 > 0:41:15seven and nine years ago are still worth less than he paid for them.
0:41:15 > 0:41:18So, he's seen the highs and lows of property developing
0:41:18 > 0:41:20and how tricky it can be.
0:41:20 > 0:41:22But he invests for the long-term,
0:41:22 > 0:41:25preparing his properties for the rental market.
0:41:25 > 0:41:28So, what are you going to do then to sort it out?
0:41:28 > 0:41:30As you would have smelt when you came in,
0:41:30 > 0:41:33the place has got a bit of an issue with damp.
0:41:33 > 0:41:35I'm going to get the floors up, have a good investigate,
0:41:35 > 0:41:38possibly tank the walls, replace some of the timbers.
0:41:38 > 0:41:42They're gone in the corners. We've got some damp issues in the kitchen.
0:41:42 > 0:41:45We need a new kitchen. It's very poorly laid out.
0:41:45 > 0:41:48The bathroom is in a little bit of a state.
0:41:48 > 0:41:50We'll sort the bathroom out, sort the kitchen out.
0:41:50 > 0:41:52Sort the damp out. Decorate.
0:41:52 > 0:41:57- Find a new tenant. - And the budget in total?
0:41:57 > 0:42:00I've set aside five grand.
0:42:00 > 0:42:02£5,000 is going to be tight,
0:42:02 > 0:42:05especially with the unknown factor of that damp.
0:42:05 > 0:42:08Stephen's given himself six to eight weeks
0:42:08 > 0:42:11to refurbish it fully, so he's not hanging around.
0:42:11 > 0:42:17- Are you very hands on then? - Pretty much always hands on.
0:42:17 > 0:42:19Do as much as possible.
0:42:19 > 0:42:23- Had a little bit of a heart scare recently.- Heart scare?- Yeah.
0:42:23 > 0:42:25What sort of heart scare?
0:42:25 > 0:42:29Not the weekend gone, the one before that,
0:42:29 > 0:42:32I had what's been diagnosed as myocarditis,
0:42:32 > 0:42:36which is inflammation of the heart muscle,
0:42:36 > 0:42:41which, I'm supposed to be taking it easy, but we'll just get stuck in.
0:42:41 > 0:42:43You don't think a good precautionary measure
0:42:43 > 0:42:45might be to kind of take it easy?
0:42:45 > 0:42:47This is me taking it easy.
0:42:47 > 0:42:49What, up ladders?
0:42:49 > 0:42:52Banging, taking off plasterwork, painting, ripping out doors.
0:42:52 > 0:42:55Doing your kitchen units. That doesn't sound easy to me!
0:42:55 > 0:42:59I might get someone else to do those bits for the next few weeks,
0:42:59 > 0:43:03- just till I get the all-clear. - Golly! Good health, anyway.
0:43:03 > 0:43:07- I hope that's all right. Good luck! - Cheers!- Look after yourself.
0:43:07 > 0:43:11- Thanks very much.- I look forward to seeing how you get on.- Thank you.
0:43:11 > 0:43:15Well, there's work to be done to sort out this flat
0:43:15 > 0:43:18but Stephen certainly seems to know what he's doing.
0:43:18 > 0:43:21The big question is, will he do it
0:43:21 > 0:43:25within that fairly tight £5,000 budget?
0:43:25 > 0:43:27You can find out later in the show.
0:43:29 > 0:43:31The moment of reckoning has arrived.
0:43:31 > 0:43:36So, have our property buyers gambled well and backed the right horse?
0:43:36 > 0:43:38Let's find out.
0:43:38 > 0:43:41Earlier, we were in Woodborough,
0:43:41 > 0:43:44this charming little hamlet in Nottinghamshire.
0:43:44 > 0:43:47Here, we met Terry, who paid £229,000
0:43:47 > 0:43:50for this three bedroomed detached house,
0:43:50 > 0:43:55which came with a huge garden and its very own orchard to boot.
0:43:55 > 0:43:59Terry lives two doors down from the property he purchased
0:43:59 > 0:44:02at the auction and values the peaceful life he leads here.
0:44:02 > 0:44:05So, he thought it was worth every penny he paid
0:44:05 > 0:44:08to make sure that nobody could build here.
0:44:08 > 0:44:11You've almost created a sort of a moat of land
0:44:11 > 0:44:13around your property, haven't you?
0:44:13 > 0:44:16Yeah. That's just what I wanted really.
0:44:16 > 0:44:19Probably a bit selfish.
0:44:19 > 0:44:24But, as I said before, I don't want nobody in my space, really.
0:44:26 > 0:44:29Well, he certainly has space now, but what has he done
0:44:29 > 0:44:33with this house, which was in desperate need of renovation?
0:44:33 > 0:44:37We've returned five months after I first met him to take a look.
0:44:53 > 0:44:55It's been renovated, all right.
0:44:55 > 0:44:58Terry has knocked the tiny kitchen and separate reception room together
0:44:58 > 0:45:01to make a much better open kitchen/diner...
0:45:01 > 0:45:04although the conservatory's a goner
0:45:04 > 0:45:08and the kitchen doors now lead straight into the garden.
0:45:08 > 0:45:11He's also used part of the garage to make a utility room
0:45:11 > 0:45:14and has added a downstairs loo.
0:45:14 > 0:45:16The front room's been redecorated.
0:45:16 > 0:45:22That 1930s fireplace I rather liked has been replaced.
0:45:22 > 0:45:26Upstairs, there are no more candy-coloured walls or damp patches.
0:45:26 > 0:45:31It's all new carpets, neutral colours and a modern bathroom suite.
0:45:31 > 0:45:34So, lots of work has been put into all this.
0:45:34 > 0:45:37Luckily, Terry didn't have to handle it alone.
0:45:37 > 0:45:42Dave's been my friend for probably ten, 15 years.
0:45:42 > 0:45:47He's helped me on this project from day one. We've worked together.
0:45:47 > 0:45:50We've done tiling, put skirtings in.
0:45:50 > 0:45:53He's done the majority of the plumbing.
0:45:53 > 0:45:57A lot of plastering, roofing, putting windows in.
0:45:57 > 0:45:59He's done lots and lots of work.
0:45:59 > 0:46:02I couldn't have done it without him, that's definite.
0:46:02 > 0:46:05Outside, and the front of the property looks
0:46:05 > 0:46:07way more welcoming than before.
0:46:07 > 0:46:10At the back, it's still work in progress.
0:46:10 > 0:46:12The garden's still messy
0:46:12 > 0:46:14but the debris has been removed from the orchard.
0:46:14 > 0:46:17Since it was the apple of Terry's eye,
0:46:17 > 0:46:20hopefully it will be fruitful some day.
0:46:20 > 0:46:22The orchard means a lot to me
0:46:22 > 0:46:26because I'm not going to build on it. It will just be an orchard.
0:46:26 > 0:46:28I've got no plans for it
0:46:28 > 0:46:31but at least nobody else has got it to do any building work in it.
0:46:31 > 0:46:34And ruin everything up here for me.
0:46:34 > 0:46:38Terry felt that maintaining his peaceful surroundings was priceless.
0:46:38 > 0:46:41Although he paid over the odds for the property,
0:46:41 > 0:46:43it was worth it to him.
0:46:43 > 0:46:46He'd originally planned to spend £15,000,
0:46:46 > 0:46:49which I feared was a bit tight.
0:46:49 > 0:46:52So, how DID he get on?
0:46:52 > 0:46:58I would imagine the job's cost between 25 and £30,000, really.
0:46:58 > 0:47:01Way over budget. But I'm not particularly bothered
0:47:01 > 0:47:03because it looks so good.
0:47:03 > 0:47:07I don't really want to rent it out because it looks so nice.
0:47:07 > 0:47:11So...but that's what it's cost - about 30 grand.
0:47:12 > 0:47:15But renting it out is the plan.
0:47:15 > 0:47:18After all, Terry may have bought this place for the space
0:47:18 > 0:47:20but it also needs to fund itself.
0:47:20 > 0:47:23He's got his ideal tenant in mind.
0:47:23 > 0:47:27The tenants I'd like are a working family
0:47:27 > 0:47:29that will come and look after it.
0:47:29 > 0:47:32Because they will look after it.
0:47:32 > 0:47:34I'm next door but one.
0:47:34 > 0:47:39So, just somebody nice, who will care for it as I would.
0:47:41 > 0:47:43Although there is some work to finish outside,
0:47:43 > 0:47:45the house is ready to let now.
0:47:47 > 0:47:50The job has taken nearly five months,
0:47:50 > 0:47:52rather than the six to eight weeks Terry had estimated,
0:47:52 > 0:47:55but his timescale was never strict.
0:47:55 > 0:47:57And, with the house's new look inside,
0:47:57 > 0:48:01I think all that time taken - and the hard work - really shows.
0:48:05 > 0:48:08But will it reap financial rewards?
0:48:08 > 0:48:12The property set Terry back £229,000 at the auction.
0:48:12 > 0:48:18The work has cost him around 30,000, making a total spend of £259,000.
0:48:18 > 0:48:22We invited two local property experts -
0:48:22 > 0:48:25one of whom was on a return visit - to give us their views.
0:48:25 > 0:48:27I think that the purchaser has made a great job
0:48:27 > 0:48:30in the transformation of the property.
0:48:30 > 0:48:33It's very neutral now with a modern kitchen, modern bathroom
0:48:33 > 0:48:36and has lots to offer.
0:48:36 > 0:48:38The renovation to the property is very good
0:48:38 > 0:48:41in terms of the workmanship that's been put into it
0:48:41 > 0:48:43and the quality of work that's been done to it.
0:48:43 > 0:48:46Both estate agents pointed out that the value
0:48:46 > 0:48:49of the property could be increased by either adding an extension
0:48:49 > 0:48:53to the existing building or selling the orchard to a developer.
0:48:53 > 0:48:55Well, we know that's not likely.
0:48:55 > 0:48:58That would defeat the point of Terry's efforts here.
0:48:58 > 0:49:01Privacy and peace have been Terry's reward,
0:49:01 > 0:49:06but how much profit would he make in hard cash, should he decide to sell?
0:49:06 > 0:49:09If I were to put this property on the market today,
0:49:09 > 0:49:14I would look to put it for sale at an asking price of £270,000.
0:49:14 > 0:49:17I would suggest a valuation of £275,000,
0:49:17 > 0:49:21looking to achieve around about £265,000.
0:49:21 > 0:49:24I don't suppose that's too bad at all, but...
0:49:24 > 0:49:27we've bought it and spent that sort of money on it,
0:49:27 > 0:49:31so, I'd like a little bit more, but I'm not going to sell it anyway.
0:49:31 > 0:49:35So, he could make a pre-tax profit of between £6,000
0:49:35 > 0:49:38and £16,000, minus the usual selling expenses.
0:49:38 > 0:49:41But, Terry's set on letting this property
0:49:41 > 0:49:44as he wants to maintain control over it. So, what could it earn?
0:49:44 > 0:49:47I would expect it to achieve a monthly rent
0:49:47 > 0:49:50of somewhere in the region of £900 per calendar month.
0:49:50 > 0:49:53You'd be looking to achieve somewhere in the region
0:49:53 > 0:49:57of £950 per calendar month, possibly down to £900 per calendar month.
0:49:57 > 0:50:00That's quite reasonable, yeah. Quite reasonable.
0:50:00 > 0:50:04A rental income of £900 to £950 per calendar month would generate
0:50:04 > 0:50:10an annual yield of around 4%. So, what's the plan now?
0:50:10 > 0:50:12Just to get it rented out.
0:50:12 > 0:50:16Sort the orchard out and get on with my life.
0:50:19 > 0:50:23It was in the Tyne & Wear town of Gateshead that we first
0:50:23 > 0:50:28came across a two bedroom basement flat that needed a lot of attention.
0:50:28 > 0:50:33Not only did it need a complete refurbishment, but it had the spectre
0:50:33 > 0:50:38of damp hanging over it, with patches on the wall and rotten skirting.
0:50:38 > 0:50:41Worst of all, the floor joists seemed to be on their last legs,
0:50:41 > 0:50:46leaving a rather unsettling bounce to the floor.
0:50:46 > 0:50:49But, springing into action at the last moment to save it
0:50:49 > 0:50:52was local property developer Stephen.
0:50:52 > 0:50:56He bought it for £25,250.
0:50:56 > 0:51:00The purchase seemed to be more by accident than design.
0:51:00 > 0:51:04Just done a big house along the road on this street.
0:51:04 > 0:51:07Just on the off chance, went to the auction,
0:51:07 > 0:51:11and the price was so good, I couldn't not.
0:51:11 > 0:51:14- Right!- Really.
0:51:16 > 0:51:19Stephen's been property developing in the area for over ten years
0:51:19 > 0:51:22and has more than 35 properties.
0:51:22 > 0:51:25Having previously bought flats in nearby street,
0:51:25 > 0:51:28he felt this flat offered such good value that,
0:51:28 > 0:51:31even with the damp issues, it would make a good addition
0:51:31 > 0:51:34to his rental portfolio.
0:51:34 > 0:51:37Despite a recent health scare with his heart, he hopes that,
0:51:37 > 0:51:41on a six to eight week timescale, and with just £5,000,
0:51:41 > 0:51:44he could breathe new life into this flat.
0:51:44 > 0:51:48Now, nearly 14 weeks later, we're back.
0:51:53 > 0:51:56Certainly, the outside's looking a whole lot healthier.
0:51:56 > 0:51:59A new front door, double glazing, paintwork, gravel,
0:51:59 > 0:52:03and the stairs down to the flat have been fitted
0:52:03 > 0:52:05with a smart new handrail.
0:52:07 > 0:52:09So, this might be a basement flat,
0:52:09 > 0:52:12but from the outside at least, things are looking up.
0:52:14 > 0:52:19Inside, Stephen's refurbished throughout - upgrading the kitchen,
0:52:19 > 0:52:21bathroom,
0:52:21 > 0:52:24fitting new central heating,
0:52:24 > 0:52:28replastering, redecorating and carpeting.
0:52:28 > 0:52:31On the face of it then, it's all looking promising.
0:52:31 > 0:52:32But what about those unseen areas
0:52:32 > 0:52:37lurking underneath the floorboards, eating away at the skirting boards?
0:52:41 > 0:52:46Once we lifted it, we didn't realise how bad the damp was going to be.
0:52:46 > 0:52:49So, we've replaced all of the sub floor joists,
0:52:49 > 0:52:53from that radiator, right over to the wall
0:52:53 > 0:52:56and right through to the chimney breast next door.
0:52:56 > 0:52:58The subfloor timbers were just rotten.
0:52:58 > 0:53:01The place was soaking wet underneath.
0:53:01 > 0:53:03All of the ventilation under the building was blocked,
0:53:03 > 0:53:06so we cleared out all of the ventilation,
0:53:06 > 0:53:09replaced the timbers, replaced the floors,
0:53:09 > 0:53:12um, treated all of the timbers,
0:53:12 > 0:53:15and we've got a nice, firm, steady floor now.
0:53:15 > 0:53:18Whereas, before, we had a bit of a trampoline.
0:53:18 > 0:53:23With the flat back on the level and the rear of the property tidied up,
0:53:23 > 0:53:26Stephen at last got it back on its feet.
0:53:26 > 0:53:30But it did take a little longer than he planned.
0:53:30 > 0:53:33I said it would possibly be two months
0:53:33 > 0:53:35but then I had a holiday and I wasn't supposed to be doing much
0:53:35 > 0:53:37because of the little heart thing,
0:53:37 > 0:53:41which I've now got the all clear for, which is good, which is nice.
0:53:41 > 0:53:46So, I think, timescales, ideally I would have got it done
0:53:46 > 0:53:50a little bit quicker, but I think ten weeks' work.
0:53:50 > 0:53:53I think we've achieved enough.
0:53:53 > 0:53:55Yes, and so do I.
0:53:55 > 0:53:59And I'm very pleased to hear that Stephen has fully recovered.
0:53:59 > 0:54:02He might have taken it a bit easier than he normally would,
0:54:02 > 0:54:04but not by much.
0:54:05 > 0:54:09Every day work got done here, I was here. I put the kitchen in,
0:54:09 > 0:54:12took the bathroom out and then reinstalled the bathroom.
0:54:12 > 0:54:15Done all the damp work. Put the windows in.
0:54:15 > 0:54:19I had a couple of friends help, who done a great job for me.
0:54:19 > 0:54:22I couldn't have done it on budget without them helping.
0:54:22 > 0:54:24But we've got there in the end
0:54:24 > 0:54:27and we're pretty much ready for tenants now.
0:54:27 > 0:54:31So, with a fair amount of elbow grease and help from friends,
0:54:31 > 0:54:34Stephen's successfully got the flat ready for the rental market.
0:54:34 > 0:54:37But has that help been enough for him
0:54:37 > 0:54:40to stick to that fairly tight £5,000 budget?
0:54:43 > 0:54:47I've spent just under five grand. So, I am on budget.
0:54:47 > 0:54:51I don't really have a great deal else to pay for,
0:54:51 > 0:54:54other than some gravel out of the back.
0:54:55 > 0:55:02So, with just a £5,000 spend added to his £25,250 purchase price,
0:55:02 > 0:55:05Stephen's made this flat ready for the rental market
0:55:05 > 0:55:09for a total outlay of £30,250 without costs or fees.
0:55:09 > 0:55:12So, has this been a good investment?
0:55:12 > 0:55:15What do two local estate agents think?
0:55:15 > 0:55:17I think this property is well presented
0:55:17 > 0:55:19and has been finished to a very high standard.
0:55:19 > 0:55:21I don't think this would stand on the market too long now.
0:55:21 > 0:55:23I think it's a smashing property.
0:55:23 > 0:55:26I think that blend of modern conveniences of central heating,
0:55:26 > 0:55:29double glazing, neutral decor, absolutely perfect.
0:55:29 > 0:55:33Stephen plans to let the two-bed flat out
0:55:33 > 0:55:36but, after investing £30,250 on it,
0:55:36 > 0:55:40could he see any return if he sold it?
0:55:40 > 0:55:42In the current market, I would expect to achieve
0:55:42 > 0:55:44£55,000 for this property.
0:55:44 > 0:55:49In my opinion, somewhere between 55,000 and £60,000.
0:55:49 > 0:55:51I'd be happier with 60, obviously,
0:55:51 > 0:55:55which would kind of be a double-your-money project.
0:55:55 > 0:55:58Those valuations could mean a potential pre-tax profit
0:55:58 > 0:56:01of between £25,000 and £30,000,
0:56:01 > 0:56:04as Stephen says, nearly doubling his outlay.
0:56:04 > 0:56:07But, for now, it's all about the rental income.
0:56:07 > 0:56:10If the owner were to rent this property out,
0:56:10 > 0:56:13I would expect to achieve £425 per calendar month.
0:56:13 > 0:56:15I would encourage the owner to put it on the market
0:56:15 > 0:56:18at around about £450 per calendar month.
0:56:18 > 0:56:20That's probably round about
0:56:20 > 0:56:22what I would expect to achieve for the place.
0:56:22 > 0:56:27Um, possibly, to let it quickly, we might go a little bit cheaper.
0:56:29 > 0:56:31Even at £400 per calendar month,
0:56:31 > 0:56:34Stephen could be looking at a whopping yield of around 16%.
0:56:34 > 0:56:37So, planned purchase or not, this flat
0:56:37 > 0:56:40certainly didn't turn out to be a damp squib.
0:56:40 > 0:56:43I wasn't looking to buy when I bought this one.
0:56:43 > 0:56:45It was kind of an accident
0:56:45 > 0:56:48and no doubt there'll be another accident
0:56:48 > 0:56:51just round the corner somewhere.
0:56:51 > 0:56:54Well, whether you're a full-time property developer,
0:56:54 > 0:56:56or a property buying novice,
0:56:56 > 0:56:59join us next time for more auction stories.
0:56:59 > 0:57:02- We'll look forward to seeing you then. Goodbye.- Goodbye.
0:57:02 > 0:57:05Subtitles by Red Bee Media Ltd