0:00:00 > 0:00:03Buying a property can be a long, drawn-out process,
0:00:03 > 0:00:05but not at the auction.
0:00:05 > 0:00:09Imagine getting the keys to your dream property in about a month.
0:00:09 > 0:00:13Sound too good to be true? Not if you buy your home under the hammer.
0:00:38 > 0:00:42Sometimes buying at auction can be a bit of a gamble but not
0:00:42 > 0:00:44if you do your research first.
0:00:44 > 0:00:46So are today's buyers on a winning streak?
0:00:46 > 0:00:49Well, here's what they bought.
0:00:49 > 0:00:53In Maidstone, Kent, there's confusion in the kitchen.
0:00:53 > 0:00:56That's not a cupboard, that is a downstairs bathroom.
0:00:59 > 0:01:03There's a plot of land that's in peak condition in Shepshed, Leicestershire.
0:01:05 > 0:01:09If you're a mountain goat, it's absolutely perfect.
0:01:09 > 0:01:11And in Chester-le-Street, County Durham,
0:01:11 > 0:01:15this double-fronted three-bedroom house shows a lot of promise.
0:01:15 > 0:01:19And then it all starts to go horribly wrong because you've got this kitchen.
0:01:20 > 0:01:22All these properties have been sold at auctions.
0:01:22 > 0:01:25We'll find out who bought them and what they paid for them
0:01:25 > 0:01:27when they went under the hammer.
0:01:27 > 0:01:29There you go.
0:01:32 > 0:01:35Maidstone in Kent. With marvellous motorway connections
0:01:35 > 0:01:37and direct trains into London,
0:01:37 > 0:01:40it's in the garden of England, yet close to the capital
0:01:40 > 0:01:45and the coast, so certainly worth checking out its property prospects.
0:01:45 > 0:01:46Just north of the town centre
0:01:46 > 0:01:50and minutes from the motorway is the property I'm here to see.
0:01:50 > 0:01:55It's also very close to the barracks of the Royal Engineers, which might
0:01:55 > 0:01:58just mean you have a ready stream of families looking for rentals.
0:01:58 > 0:02:03Worth investigating, as is the property itself.
0:02:03 > 0:02:09It's this three-bedroom mid-terrace and it had a guide price of £90,000 to £100,000.
0:02:09 > 0:02:13Time to march inside and see if we have a fighting chance
0:02:13 > 0:02:14of making some sound profit.
0:02:16 > 0:02:20OK, eyes front, stand straight, ready for inspection.
0:02:20 > 0:02:23What have we here? Dodgy roof, but on a decent street,
0:02:23 > 0:02:27and its location could be perfect to attack the rental market.
0:02:27 > 0:02:30Large rear garden but shabby.
0:02:30 > 0:02:33I don't think it would pass muster in its current state.
0:02:35 > 0:02:39OK, in my job you don't expect to walk into these houses
0:02:39 > 0:02:41and for them to smell of roses
0:02:41 > 0:02:44because if you did, you'd be disappointed.
0:02:44 > 0:02:47This house, it's not straightaway filling me with enthusiasm.
0:02:47 > 0:02:51It's tired, it's dated, the wallpaper's peeling off,
0:02:51 > 0:02:52there's cobwebs everywhere.
0:02:52 > 0:02:56But on the upside you have got a nice big bay window which does let
0:02:56 > 0:03:00lots of light through, so I'd go to town on the decorating in here
0:03:00 > 0:03:02and it could be a nice, bright and spacious room.
0:03:02 > 0:03:05You've got the kitchen at the back of the property,
0:03:05 > 0:03:07a little cupboard through here...
0:03:07 > 0:03:11That's not a cupboard, that is a downstairs bathroom.
0:03:11 > 0:03:15Now I would have expected that in a Victorian house perhaps,
0:03:15 > 0:03:19but not a 1920s/30s build. That's rather strange.
0:03:19 > 0:03:22I'm just wondering whether you could improve on that,
0:03:22 > 0:03:29and through here, oh dear, not even a downstairs toilet, an outside toilet.
0:03:29 > 0:03:34Extremely cold in the winter months. No central heating out there at all.
0:03:34 > 0:03:38There's a lot I would do to rearrange the space.
0:03:38 > 0:03:41I'm just wondering whether there is another bathroom upstairs.
0:03:41 > 0:03:44I'm going to go and check it out.
0:03:44 > 0:03:46The house has been vacant for a year
0:03:46 > 0:03:48so no wonder it's in a bit of a state.
0:03:48 > 0:03:50The kitchen definitely needs refurbishing
0:03:50 > 0:03:53and the toilet situation has to be addressed.
0:03:53 > 0:03:58Another significant outlay is required for installing central heating,
0:03:58 > 0:04:00as there's currently none.
0:04:00 > 0:04:03I think an all-out assault on this place
0:04:03 > 0:04:06is necessary to get it back into shape.
0:04:06 > 0:04:10The first line of attack should be tackling the bathroom/toilet position.
0:04:10 > 0:04:13So, time for some reconnaissance upstairs.
0:04:13 > 0:04:18So if you are determined to bring the downstairs bathroom upstairs,
0:04:18 > 0:04:22the obvious place, in my mind, would be the smallest bedroom
0:04:22 > 0:04:24because the plumbing is directly underneath,
0:04:24 > 0:04:28but then you would be losing that bedroom.
0:04:28 > 0:04:30So, because this room, look at this,
0:04:30 > 0:04:35is very generous as a master bedroom, it's actually too big,
0:04:35 > 0:04:38you could think about taking a portion of it
0:04:38 > 0:04:41to put the bathroom in this end.
0:04:41 > 0:04:44You would have to knock down some walls, put up a partition,
0:04:44 > 0:04:46change the plumbing around.
0:04:46 > 0:04:49It would be a lot of hard work, a lot of money
0:04:49 > 0:04:53and a lot of lost profit, but it is doable.
0:04:53 > 0:04:55If this was to be my home,
0:04:55 > 0:05:00I'd definitely want to move the bathroom upstairs, either by losing
0:05:00 > 0:05:04the smaller bedroom or taking some space from the larger master bedroom.
0:05:04 > 0:05:08But as a development project, I'm not sure it would add up.
0:05:08 > 0:05:11There's high demand for rentals in this area so leaving it downstairs
0:05:11 > 0:05:15probably won't affect the monthly yield too much.
0:05:15 > 0:05:17But losing a bedroom certainly would,
0:05:17 > 0:05:21so the moral of this story is to keep it simple and don't be hasty.
0:05:21 > 0:05:27# All I ask is not so fast. #
0:05:31 > 0:05:36To get a clear idea of how to tackle this three-bedroom terraced house
0:05:36 > 0:05:38that was guided at £90,000 to £100,000,
0:05:38 > 0:05:41we asked a local estate agent for his opinion.
0:05:41 > 0:05:43It's definitely worth putting the bathroom
0:05:43 > 0:05:45on the first floor, no question.
0:05:45 > 0:05:49Because even if it doesn't add any particular value to the sale price,
0:05:49 > 0:05:53it will undoubtedly make it more attractive and obviously
0:05:53 > 0:05:55when its more attractive, it's going to appeal to a wider,
0:05:55 > 0:05:59broader section of the house-buying community.
0:05:59 > 0:06:01OK, so he's keen to move it,
0:06:01 > 0:06:04but do the numbers really justify the work involved in doing so?
0:06:06 > 0:06:09I think the property, fully-renovated with the bathroom
0:06:09 > 0:06:14remaining on the ground floor, is probably worth about £125,000.
0:06:14 > 0:06:17Renovated, with the bathroom upstairs,
0:06:17 > 0:06:19maybe £130,000 to £135,000.
0:06:19 > 0:06:22From a rental perspective, I think,
0:06:22 > 0:06:25irrespective of whether the bathroom goes upstairs or not,
0:06:25 > 0:06:29I think you'd probably get about £750 per calendar month.
0:06:29 > 0:06:32So listening to my heart over my head,
0:06:32 > 0:06:34I might recommend changing the layout,
0:06:34 > 0:06:36but wearing a developer's hard hat,
0:06:36 > 0:06:41leaving it as it is should be the financially sensible choice.
0:06:41 > 0:06:44This is an easy investment in my opinion.
0:06:44 > 0:06:47An established estate which is popular with renters
0:06:47 > 0:06:51and a straightforward refurb with the chance to add a little bit of value.
0:06:51 > 0:06:54Let's see who fancied this one at the auction.
0:06:59 > 0:07:04Lot 48, we move to Maidstone. Start me at £90,000?
0:07:04 > 0:07:0590, I have, thank you.
0:07:05 > 0:07:0992, do I see? 92, I have, 94?
0:07:09 > 0:07:1194 is bid, and 96.
0:07:11 > 0:07:1696 and 98. 98 and 100. 100 I have.
0:07:16 > 0:07:22102, 102, 104, 103, 104.
0:07:22 > 0:07:25104, 105, 106.
0:07:25 > 0:07:28There was a lot of interest in this one.
0:07:28 > 0:07:31We rejoin the bidding at £111,000.
0:07:31 > 0:07:35111 and 112. You can see the hand as well as I can.
0:07:35 > 0:07:41112 is bid, 113. 113 and 114.
0:07:41 > 0:07:44114 and 115.
0:07:45 > 0:07:50115 and 116. You're shaking your head the wrong way.
0:07:50 > 0:07:56At £115,000 on my left-hand side. In the room for the first time,
0:07:56 > 0:07:58£115,000.
0:07:58 > 0:08:01For the second time at £115,000.
0:08:01 > 0:08:07Third and final time, £115,000. Are you all done? Sold at £115,000.
0:08:07 > 0:08:11So, for £115,000, the successful bidder
0:08:11 > 0:08:15for the three-bedroom mid-terrace house in Maidstone was Nicky.
0:08:15 > 0:08:18She works as a crime manager for the local police force
0:08:18 > 0:08:22and is in the process of taking voluntary redundancy.
0:08:22 > 0:08:26I met her back at the property to find out why this particular one caught her eye.
0:08:33 > 0:08:35- Nicky, congratulations. - Thank you.
0:08:35 > 0:08:40So why were you inspired to go to auction and spend the money you did?
0:08:40 > 0:08:43Because I'm taking redundancy from work,
0:08:43 > 0:08:47and I've always wanted to get into property renovation.
0:08:47 > 0:08:49So that's what inspired me.
0:08:49 > 0:08:52Tell me about your job, what have you been doing?
0:08:52 > 0:08:55- 22 years working for the police force.- Really?
0:08:55 > 0:08:58Yes, and obviously they're making a lot of cutbacks at the moment
0:08:58 > 0:09:01so I thought while the opportunity's there, time to do something else.
0:09:01 > 0:09:06- Brave young lady. So you're venturing out into property.- I am.
0:09:06 > 0:09:09What is it about property you love so much and what inspired you?
0:09:09 > 0:09:15I've always liked DIY and I've been on a few courses, plumbing
0:09:15 > 0:09:17and plastering, and I thought I need to practise it now so I went
0:09:17 > 0:09:22- and got myself a property.- What caught your eye about this property?
0:09:22 > 0:09:25It was quite close to where I live so coming back
0:09:25 > 0:09:27and forward wasn't an issue. And the price, really.
0:09:27 > 0:09:31- And did you see inside? - No, I didn't, the ultimate sin!
0:09:31 > 0:09:35You didn't look inside? Did you peer through the letterbox even?
0:09:35 > 0:09:37I hadn't seen it before. I saw it in the catalogue
0:09:37 > 0:09:40and I read the legal pack but I hadn't visited.
0:09:40 > 0:09:45So you spent £115,000 and you hadn't seen inside?! Were you disappointed?
0:09:45 > 0:09:47No, I was really pleased, actually.
0:09:47 > 0:09:51I do hope that first-time property developer, Nicky,
0:09:51 > 0:09:53hasn't got stuck with a tight profit margin.
0:09:53 > 0:09:55This place needs a lot of work
0:09:55 > 0:09:58and she did pay a bit over the guide price.
0:09:58 > 0:10:02Still, she's going to be very hands-on which is the best way to keep costs down.
0:10:02 > 0:10:05What is it that you don't like about the property?
0:10:05 > 0:10:08The fact the bathroom's downstairs. I want to move that upstairs.
0:10:08 > 0:10:11I'm hoping to take some of the main bedroom and put the bathroom there
0:10:11 > 0:10:15but if not, then I'll use the small bedroom as it is now,
0:10:15 > 0:10:21turn that into a bathroom and then take some of the main bedroom for the other bedroom.
0:10:21 > 0:10:24I'm really glad that you're not going to sacrifice a bedroom
0:10:24 > 0:10:28for a bathroom, so you're still going to have three bedrooms upstairs.
0:10:28 > 0:10:32- Are you going to keep the downstairs toilet?- If I can keep one, I will.
0:10:32 > 0:10:34How much do you think you'll be spending?
0:10:34 > 0:10:39I have a budget of £10,000, so hopefully I can keep within that
0:10:39 > 0:10:43doing most of the work myself and just getting professionals in for the electric and gas.
0:10:43 > 0:10:47That is quite a tight budget because you've got to have a new kitchen,
0:10:47 > 0:10:49brand new everything, actually.
0:10:49 > 0:10:51Carpets, everything. Everything you're looking at.
0:10:51 > 0:10:55- It does need... - Everything.- Everything.
0:10:59 > 0:11:03A £10,000 budget on top of her £115,000 purchase price
0:11:03 > 0:11:07means she's already in for £125,000.
0:11:07 > 0:11:11The estate agent valued this property, once refurbished,
0:11:11 > 0:11:15with the reconfiguration, at £130,000 to £135,000
0:11:15 > 0:11:17so there's not much in it.
0:11:17 > 0:11:21She'll need to tighten those purse-strings on her first venture.
0:11:21 > 0:11:24- Is it quite daunting, taking this on? - It is, yeah, this is my first one.
0:11:24 > 0:11:28But other people do it and achieve it so...
0:11:28 > 0:11:30Absolutely, and you know what, unless you give it a go,
0:11:30 > 0:11:34you will never know, and this is the time in your life to take this on.
0:11:34 > 0:11:38- Absolutely.- So how soon do you finish work?- I've got another month.
0:11:38 > 0:11:43So you've got four more weeks to bear it and then you're going to get stuck in, overalls on?
0:11:43 > 0:11:45Well, I have puppies due as well,
0:11:45 > 0:11:50- so it might be delayed a bit more as well.- You're having puppies?
0:11:50 > 0:11:53- Not me, my husky is having puppies. - How many are they having?
0:11:53 > 0:11:56I don't know yet. I can't have her X-rayed until day 55.
0:11:56 > 0:11:58And how many do you think you could have?
0:11:58 > 0:12:03- She could have anything up to 10. - And you've got a house to renovate?
0:12:03 > 0:12:07- Good luck!- Thanks, I'm going to need it.- You are.
0:12:07 > 0:12:10Look, it's been fantastic meeting you. Good luck with this.
0:12:10 > 0:12:12Well done, thank you.
0:12:12 > 0:12:15Of course, the puppies take priority
0:12:15 > 0:12:17so Nicky's given herself four to five months
0:12:17 > 0:12:19to get the work done here.
0:12:19 > 0:12:26# And they called it puppy love
0:12:26 > 0:12:30# Oh, I guess they'll never know. #
0:12:30 > 0:12:35Oh, Nicky's budget is tight. As are the profit margins.
0:12:35 > 0:12:37I can see why she wants to move the bathroom
0:12:37 > 0:12:40but she needs to do her sums to make sure it's worth it,
0:12:40 > 0:12:42otherwise when she comes to sell
0:12:42 > 0:12:45she'll be having kittens as well as puppies.
0:12:45 > 0:12:47You can find out how it goes later in the programme.
0:12:51 > 0:12:55I'm in Leicestershire in the town of Shepshed.
0:12:55 > 0:13:00Historically, it's been known both as Sheepshead and Shepshed.
0:13:00 > 0:13:05The translation of its name in the Domesday Book is "a hill where sheep graze".
0:13:05 > 0:13:10So no prizes for guessing that it was important in the wool industry.
0:13:10 > 0:13:13Its history is reflected in the buildings of the old quarter
0:13:13 > 0:13:16but there's a lot of modern development here, too.
0:13:16 > 0:13:20I'm here to see a plot of land with planning permission
0:13:20 > 0:13:23at a guide price of £65,000.
0:13:23 > 0:13:26And, as is usually the case when it comes to looking at plots of land,
0:13:26 > 0:13:31sometimes it's quite difficult to establish where the boundary of the land is.
0:13:31 > 0:13:34It's actually part of the land that once belonged to the pub there
0:13:34 > 0:13:36which has been divided off.
0:13:36 > 0:13:39That bit of the car park there isn't part of the plot.
0:13:39 > 0:13:42It's actually a line between that gatepost there and where the hedge
0:13:42 > 0:13:44has been cut down on into the distance where the fence is.
0:13:44 > 0:13:49324 square metres in total. OK, let's take a look.
0:13:55 > 0:13:57This plot is just part of a bigger development scheme.
0:13:57 > 0:14:00The pub has planning permission for conversion
0:14:00 > 0:14:02and permission has been granted for several new builds
0:14:02 > 0:14:05in the rest of the car park and land.
0:14:09 > 0:14:11When it comes to plots of land,
0:14:11 > 0:14:14three things you really want to have. One, it to be flat.
0:14:14 > 0:14:17Two, good road access. And three,
0:14:17 > 0:14:22easy access to services such as sewers, electricity and gas etc.
0:14:22 > 0:14:24Well, it's going to do OK on road access
0:14:24 > 0:14:26because that's already established.
0:14:26 > 0:14:29On the electrics, gas, sewers, I think because there's residential
0:14:29 > 0:14:32properties over there, that won't be much of an issue.
0:14:32 > 0:14:35The big problem as far as I can see is the whole flat issue.
0:14:35 > 0:14:38That's one thing it certainly isn't. If you're a mountain goat,
0:14:38 > 0:14:40it's absolutely perfect but you have to say,
0:14:40 > 0:14:44there's going to be a lot of earth movement required to sort this one out.
0:14:44 > 0:14:49# When the earth moves again
0:14:49 > 0:14:52# When the earth moves again. #
0:14:53 > 0:14:59But, of course, the big advantage here is that detailed planning permission is already in place.
0:15:02 > 0:15:07The plans that have been passed are for two semi-detached properties,
0:15:07 > 0:15:09and quite nice they sound, too.
0:15:09 > 0:15:13Downstairs you've got a kitchen, a lounge, a ground-floor toilet.
0:15:13 > 0:15:16Upstairs, two bedrooms and a bathroom.
0:15:16 > 0:15:19Now the catalogue does say that you might consider
0:15:19 > 0:15:21putting in a third bedroom, perhaps in the attic space.
0:15:21 > 0:15:24It's all about what difference that would make in the end selling cost
0:15:24 > 0:15:26and how much it would cost to do it.
0:15:26 > 0:15:28Work out those figures, make your choice.
0:15:31 > 0:15:33Detailed planning permission is usually the second
0:15:33 > 0:15:37and final stage of the planning process.
0:15:37 > 0:15:41It basically means that the planners have not only okayed the build,
0:15:41 > 0:15:45as in outlined planning permission, but also approved all the final
0:15:45 > 0:15:49details such as the types of finish to be used and so on.
0:15:49 > 0:15:53It means you can start building straightaway.
0:15:55 > 0:15:57One note of caution, though.
0:16:01 > 0:16:04I know that I always bang on about how important it is that you read
0:16:04 > 0:16:06the legal pack before you buy a property
0:16:06 > 0:16:09or a piece of land at auction. There is a good reason for that.
0:16:09 > 0:16:12In the case of this bit of land, there's a covenant
0:16:12 > 0:16:15which says that if somebody buys it and then sells it on
0:16:15 > 0:16:19within 10 years, without actually building on it first,
0:16:19 > 0:16:24then the seller actually has 30% of the profit of any future sale.
0:16:24 > 0:16:26If you build on it, it's a different matter
0:16:26 > 0:16:29but if you were just to buy it and what they call landbank it,
0:16:29 > 0:16:32hold on to it with a view to selling it in the future at a profit,
0:16:32 > 0:16:36you have to factor in the fact that you're going to have to give 30% of that profit away.
0:16:36 > 0:16:40There it is, then, an incentive to get on and build.
0:16:40 > 0:16:43But what if you didn't want to go with the plan?
0:16:43 > 0:16:46Would flats or detached houses have a market?
0:16:46 > 0:16:48We asked an agent from the company who dealt with
0:16:48 > 0:16:52the sale of the land, guided at £65,000.
0:16:52 > 0:16:54In terms of the flat market,
0:16:54 > 0:16:57that's become more of a saturation point at the present time
0:16:57 > 0:17:01and detached houses, a lot of developers are doing those,
0:17:01 > 0:17:03so this represented a sector of the market
0:17:03 > 0:17:05which was very much in demand.
0:17:06 > 0:17:09What about the option of applying to add a third
0:17:09 > 0:17:11bedroom in the attic space?
0:17:12 > 0:17:16The planning application would have to be looked at again.
0:17:16 > 0:17:19It would have to go through normal detailed planning again.
0:17:19 > 0:17:23It would be worth it if you felt that you could get that additional third bedroom
0:17:23 > 0:17:26which would represent a good-sized room.
0:17:26 > 0:17:28Certainly price would be better,
0:17:28 > 0:17:31probably achieving a further £5,000 to £10,000 more
0:17:31 > 0:17:33than as a two bedroom.
0:17:33 > 0:17:37Once built, would there be a good rental demand for the houses?
0:17:37 > 0:17:40I feel that it would rent very easily.
0:17:40 > 0:17:45As a two-bedroom, it would rent at £500 per calendar month.
0:17:45 > 0:17:47As a three-bedroom, three-storey,
0:17:47 > 0:17:49that would be £550 per calendar month.
0:17:49 > 0:17:52What about the resale value here?
0:17:52 > 0:17:58A two-bedroomed semi with detailed planning as it is would be worth £125,000.
0:17:58 > 0:18:01With the change of the detailed planning to a three-bed,
0:18:01 > 0:18:05making it three-storey, that would be £135,000.
0:18:06 > 0:18:09Because the site has already got detailed planning permission
0:18:09 > 0:18:11it means a lot of the hard work has been done for you and you
0:18:11 > 0:18:15could literally start building here pretty much straightaway.
0:18:15 > 0:18:18If you stick to a tight budget and get your costings right,
0:18:18 > 0:18:20I think there's money to be made, too,
0:18:20 > 0:18:23so who fancied it when it went under the hammer?
0:18:25 > 0:18:30Lot number 19 is some residential building land.
0:18:30 > 0:18:32Where do you want to be on this one?
0:18:32 > 0:18:36£60,000 to start me? £60,000? 55?
0:18:36 > 0:18:4155 is bid, thank you. 55 is my opening bid. 56, quickly.
0:18:41 > 0:18:47£56,000 is bid. At 56, 57, 57, 58.
0:18:47 > 0:18:5259, 59,000, 60. At 60...
0:18:52 > 0:18:5760,000 down the centre. New bidder down the middle at 60,000. 61?
0:18:57 > 0:19:01At £60,000 it's in the market, no mistakes.
0:19:01 > 0:19:05We're going to sell at £60,000 for the first time.
0:19:05 > 0:19:08Against you at the back. At 60,000 for the second time.
0:19:08 > 0:19:12Third and last opportunity. All done? Sold at 60,000.
0:19:12 > 0:19:18That look of relief about their final bid of £60,000 was between Vicky and her husband, Steve.
0:19:18 > 0:19:22They're experienced developers and have recently built a house
0:19:22 > 0:19:23in Melbourne, Australia.
0:19:23 > 0:19:26However, they were missing their family so they've come home.
0:19:26 > 0:19:31# We're coming home. #
0:19:31 > 0:19:34I met up with them to find out what they were plotting.
0:19:34 > 0:19:37- Steve, Vicky, lovely to meet you both.- You too.- Congratulations.
0:19:37 > 0:19:40- Thank you very much.- So, you've bought yourself a bit of land.
0:19:40 > 0:19:42- Yes, we have.- Why?
0:19:42 > 0:19:45Well, we came back from Australia.
0:19:45 > 0:19:46We've been out there for 12 months
0:19:46 > 0:19:49and we just wanted to do something different.
0:19:49 > 0:19:50So we saw this block of land.
0:19:50 > 0:19:53It was affordable so we decided to try and buy it.
0:19:53 > 0:19:55Is this something you've done before?
0:19:55 > 0:19:58We've done various projects before.
0:19:58 > 0:20:03Mostly houses that need renovation, not necessarily land.
0:20:03 > 0:20:07Apart from the house that we had built in Australia which was very long distance.
0:20:07 > 0:20:10We bought the land and then we had a building company that built
0:20:10 > 0:20:14it for us and then we went over there and everything was fantastic.
0:20:14 > 0:20:17Your brother, who was out there at the time, project managed it for us.
0:20:17 > 0:20:20Right. Australia, what were you doing out there?
0:20:20 > 0:20:22We just decided to move over there,
0:20:22 > 0:20:26we thought we could perhaps settle. I didn't settle terribly well.
0:20:26 > 0:20:28I missed my family and my friends so much, and the UK,
0:20:28 > 0:20:31so we decided to sell up and move back.
0:20:31 > 0:20:35- How long were you out there for? - Just 12 months.- Where?- In Melbourne.
0:20:35 > 0:20:37We decided we were coming home, sold the house, got a really good
0:20:37 > 0:20:40price for it and came home on a fantastic exchange rate.
0:20:40 > 0:20:44That is why we bought this land. We've also bought a terraced property to develop.
0:20:44 > 0:20:48# We've been searching for a place to call our own
0:20:48 > 0:20:52# Yeah, we're coming home. #
0:20:53 > 0:20:56Vicky and Steve really are the comeback kids.
0:20:56 > 0:21:00Not only have they bought this plot with the plan for two semis
0:21:00 > 0:21:03but they've also got that terraced house as an investment.
0:21:03 > 0:21:05And as if all that wasn't enough of a challenge,
0:21:05 > 0:21:08they're also having work done on their own home, too.
0:21:10 > 0:21:11So what are the plans, then?
0:21:11 > 0:21:14Are you going to stick pretty much with what's been passed?
0:21:14 > 0:21:17I think we'll stick to the plans as best we can.
0:21:17 > 0:21:19We've got an architect to look over them for us
0:21:19 > 0:21:21so we'll see what he has to say
0:21:21 > 0:21:23and if he can make any really good changes to them
0:21:23 > 0:21:27then we'll go with that and go with his recommendation, really.
0:21:27 > 0:21:31Obviously, we've got planning permission for two two-beds.
0:21:31 > 0:21:34There is potential to go to three beds,
0:21:34 > 0:21:37which may increase the value of the properties, so...
0:21:37 > 0:21:40It's just something to bear in mind, isn't it?
0:21:40 > 0:21:43Now, clearly cost is going to be absolutely key to this, because this
0:21:43 > 0:21:47is a business venture, presumably to sell the properties on?
0:21:47 > 0:21:48We've not really decided.
0:21:48 > 0:21:51It depends on the market value at the time.
0:21:51 > 0:21:53If it's advantageous to sell then we'll probably sell.
0:21:53 > 0:21:57Equally, if it's advantageous to rent, then we'll rent them out
0:21:57 > 0:21:59and see where we go from there.
0:21:59 > 0:22:01The costs either way are going to be important.
0:22:01 > 0:22:04Do you have any idea of budget at this point?
0:22:04 > 0:22:05In terms of construction costs,
0:22:05 > 0:22:10we know that they're going to be £60,000 and £100,000 for the pair.
0:22:10 > 0:22:14What's the process to getting it done and what's your involvement?
0:22:14 > 0:22:16We'll probably project manage.
0:22:16 > 0:22:18Well, we will project manage the construction,
0:22:18 > 0:22:22make sure that the services and materials are here on time.
0:22:22 > 0:22:27We'll have a really hands-on approach. We want to keep our finger on the pulse.
0:22:27 > 0:22:30So what's the timescale for doing this?
0:22:30 > 0:22:33Roughly, we'd like to get them constructed within 12 months.
0:22:33 > 0:22:37Obviously, we've got other projects on the go as it were at the moment.
0:22:37 > 0:22:40That's our target and hopefully that won't slip.
0:22:40 > 0:22:43Only time will tell, I guess!
0:22:43 > 0:22:46Is this going to be your job, for want of a better word?
0:22:46 > 0:22:49Are you both going to carry on working? What do you do, work-wise?
0:22:49 > 0:22:52I was an engineer by trade.
0:22:52 > 0:22:55I'm a fitter by trade, so currently, obviously,
0:22:55 > 0:22:58we're spending time doing the house up.
0:22:58 > 0:23:02I may well go back into engineering. It really depends, Martin,
0:23:02 > 0:23:04how well this takes off.
0:23:04 > 0:23:07I was working in the health service as a health service manager.
0:23:07 > 0:23:10I wouldn't mind going back into that but this is it, really.
0:23:10 > 0:23:13If it works for us, then we'll probably carry on and continue
0:23:13 > 0:23:17but if not, we've got jobs that we can go back to.
0:23:17 > 0:23:20Listen, congratulations and best of luck to you both.
0:23:20 > 0:23:23- We look forward to seeing how you get on.- Thank you very much indeed.
0:23:23 > 0:23:27Well, Steve and Vicky may well have done a new-build in the past
0:23:27 > 0:23:31but that was in Australia and building their home.
0:23:31 > 0:23:34Doing this for profit is a completely different kettle of fish.
0:23:34 > 0:23:38Will they stick to the budgets and timescales and make money out of the venture?
0:23:38 > 0:23:40Find out later in the show.
0:23:42 > 0:23:48Coming up, in Chester-le-Street, this three-bedroomed terrace house needs a total rethink.
0:23:48 > 0:23:51There's layout issues here that need to be addressed.
0:23:51 > 0:23:54In Shepshed, as the old adage goes, if you're in a hole,
0:23:54 > 0:23:56maybe you should stop digging.
0:23:56 > 0:24:02We've had to remove quite a lot of earth, something like 400 tonnes.
0:24:02 > 0:24:07But first, time to find out if it's huskies or houses for Nicky now.
0:24:07 > 0:24:11I've really enjoyed the breeding but no, I love being my own boss.
0:24:14 > 0:24:20We're back in Maidstone, Kent, to see how Nicky got on with that three-bedroom mid-terrace house.
0:24:20 > 0:24:24She was in the process of taking voluntary redundancy from her job
0:24:24 > 0:24:27as a crime manager in the police force
0:24:27 > 0:24:29and this was her very first development.
0:24:29 > 0:24:32The house was in a good location, with an army barracks
0:24:32 > 0:24:37and university nearby. Very handy for recruiting tenants or buyers.
0:24:38 > 0:24:42But it was obvious the house needed its own small army
0:24:42 > 0:24:45to bring it back to life. It had no central heating,
0:24:45 > 0:24:50the electrics dated back to the 1950s and that's not all.
0:24:50 > 0:24:53- Did you see inside? - No, I didn't. The ultimate sin!
0:24:53 > 0:24:56You didn't look inside? Did you peer through the letterbox even?
0:24:56 > 0:25:00No, I hadn't seen it before. I saw it in the catalogue and I read the legal pack.
0:25:00 > 0:25:05So you spent £115,000 and you hadn't seen inside?! Were you disappointed?
0:25:05 > 0:25:07No, I was really pleased, actually.
0:25:09 > 0:25:13OK, so no evidence of property research there, then.
0:25:13 > 0:25:16But Nicky needed to deal with one of the house's biggest problems.
0:25:16 > 0:25:18The only bathroom was downstairs,
0:25:18 > 0:25:22and the only loo was right beside it, by the back door.
0:25:23 > 0:25:26I'm hoping to take some of the main bedroom and put the bathroom there,
0:25:26 > 0:25:30but if not, then I'll use the small bedroom as it is now,
0:25:30 > 0:25:32turn that into a bathroom and then
0:25:32 > 0:25:35take some of the main bedroom for the other bedroom.
0:25:35 > 0:25:38Although this was her first development, Nicky,
0:25:38 > 0:25:42who's a DIY enthusiast, was hopeful that she could make
0:25:42 > 0:25:45her relatively small budget of £10,000 work.
0:25:45 > 0:25:47I was a bit concerned that that amount
0:25:47 > 0:25:52and purchase price of 115,000 meant her profit could be eaten away
0:25:52 > 0:25:57by her ambitions, particularly if she was going to shift rooms around.
0:25:57 > 0:25:59She would still have to get professionals
0:25:59 > 0:26:01to sort the electrics and gas,
0:26:01 > 0:26:05but she was pretty optimistic she could do it in four months,
0:26:05 > 0:26:07although did admit that her husky dogs producing
0:26:07 > 0:26:10their first litter might take priority.
0:26:12 > 0:26:16Nine months later, we're back to see how she got on.
0:26:16 > 0:26:19Was it a pet project or a dog's dinner?
0:26:19 > 0:26:22Storm has come along with Nicky to tell us all about it.
0:26:22 > 0:26:24# Look at me
0:26:25 > 0:26:31# You can take it all because this face is free
0:26:32 > 0:26:37# Maybe next time use your eyes and look at me
0:26:39 > 0:26:43# I can even do reality. #
0:26:43 > 0:26:45Nicky has been extremely busy.
0:26:45 > 0:26:50This house is unrecognisable, from the abandoned, mouldy,
0:26:50 > 0:26:53unloved mid-terrace that it was.
0:26:53 > 0:26:58OK. When I first bought the property, it was horrible.
0:26:58 > 0:27:01It was tiles all over the wall,
0:27:01 > 0:27:04there was two doors here to go outside towards the back door,
0:27:04 > 0:27:08and then there was a toilet, and there was a bath here
0:27:08 > 0:27:13in a really dingy, tiny room, set back in the alcove.
0:27:13 > 0:27:15And took it back to bare bricks, really.
0:27:15 > 0:27:18Levelled up the floor and then tiled it, obviously,
0:27:18 > 0:27:21and did the rest - the heating,
0:27:21 > 0:27:24and got all the walls plastered, and then I fitted the kitchen.
0:27:24 > 0:27:26SHE LAUGHS
0:27:26 > 0:27:30That was a job and a half, that was. Yeah, I've learnt loads.
0:27:32 > 0:27:34# Come on and look at me. #
0:27:34 > 0:27:37Nicky's transformed this dank and dreary space
0:27:37 > 0:27:40into a family-sized kitchen diner.
0:27:40 > 0:27:42By adding French doors to the garden,
0:27:42 > 0:27:45she's flooded the whole of the downstairs with light.
0:27:47 > 0:27:50The loo and bathroom have moved from downstairs,
0:27:50 > 0:27:53but there are still three bedrooms upstairs.
0:27:53 > 0:27:55I've moved the bathroom upstairs
0:27:55 > 0:27:58and taken some of the front bedroom from that.
0:27:58 > 0:28:00It was difficult trying to fit everything in.
0:28:00 > 0:28:03I had to get a smaller door so that I could get a bath in.
0:28:03 > 0:28:05I wanted a full-size bath in there,
0:28:05 > 0:28:09so that was a bit tricky to get everything fitted in.
0:28:09 > 0:28:10Managed it, just.
0:28:10 > 0:28:14Nicky had to think small to fit a bath and shower in here,
0:28:14 > 0:28:17but her clever reallocation of space upstairs
0:28:17 > 0:28:21has left her with a decent-sized front bedroom.
0:28:21 > 0:28:25The other two bedrooms have not been affected by the bathroom move,
0:28:25 > 0:28:29but have been rewired, re-plastered and completely refreshed.
0:28:29 > 0:28:31I did most of the work myself.
0:28:31 > 0:28:33I did have a plasterer in to do the ceilings,
0:28:33 > 0:28:37but I tackled some of the walls myself. I can do plastering.
0:28:37 > 0:28:39They came out all right, but I don't really like it.
0:28:39 > 0:28:42You have to keep going, and it's quite hard on the elbows.
0:28:43 > 0:28:46I plumbed the bathroom in myself.
0:28:46 > 0:28:48I had a company put new windows in,
0:28:48 > 0:28:54and I had somebody put the radiators and complete rewire.
0:28:54 > 0:28:56But other than that, I've done everything myself.
0:28:56 > 0:28:59Wow! Is this lady Superwoman?
0:28:59 > 0:29:02I'm really impressed with the quality of the work Nicky's done here.
0:29:02 > 0:29:05Of course, by doing most of it herself,
0:29:05 > 0:29:06she's kept her costs way down.
0:29:06 > 0:29:10I haven't had time to completely down to the detail,
0:29:10 > 0:29:12but I think I'm within my 10,000 budget.
0:29:12 > 0:29:15That's not including if I paid myself a wage,
0:29:15 > 0:29:16which I haven't been, but yeah.
0:29:16 > 0:29:18About 10,000.
0:29:19 > 0:29:21Nicky bought the place for 115,000
0:29:21 > 0:29:25and has spent £10,000 on the renovations.
0:29:25 > 0:29:29Time to find out if she has improved her finances as much as the house.
0:29:29 > 0:29:33We asked two local estate agents along for their opinions.
0:29:33 > 0:29:35What a transformation.
0:29:35 > 0:29:37The owner's done a tremendous job.
0:29:37 > 0:29:40As a result of the alteration on the ground floor,
0:29:40 > 0:29:42it's created much better living space,
0:29:42 > 0:29:45so we've now got a decent-size kitchen diner.
0:29:45 > 0:29:49Very good for a young family. An excellent idea.
0:29:49 > 0:29:51The work that the owner has done so far has been very good.
0:29:51 > 0:29:52It's not quite finished,
0:29:52 > 0:29:54there's a few little tweaks here and there,
0:29:54 > 0:29:56but she's done a very good job with the property.
0:29:56 > 0:29:58By moving the bathroom upstairs,
0:29:58 > 0:30:01although she has stolen some of the bedroom space,
0:30:01 > 0:30:03it has really improved the property.
0:30:03 > 0:30:06A lot of people prefer an upstairs bathroom.
0:30:06 > 0:30:10Nicky spent £125,000 on the renovation.
0:30:10 > 0:30:13So what do the estate agents think it's worth now?
0:30:15 > 0:30:17If I were to put this property on the market now,
0:30:17 > 0:30:21I would expect it to achieve somewhere between 135,000
0:30:21 > 0:30:23and £140,000.
0:30:23 > 0:30:25If we were to put this property on the market for sale,
0:30:25 > 0:30:30I would say it would fetch in the region of 140 to £145,000.
0:30:30 > 0:30:34That would give Nicky a profit of between £10-20,000
0:30:34 > 0:30:36before tax and expenses.
0:30:36 > 0:30:37Excellent. I'm pleased with that.
0:30:37 > 0:30:40Obviously, the higher one would be the better one,
0:30:40 > 0:30:42but the market's a bit slow at the moment.
0:30:42 > 0:30:44So, yeah, I'm pleased.
0:30:44 > 0:30:46What about the rental market here?
0:30:46 > 0:30:49If we were to put this property on the market for rental,
0:30:49 > 0:30:53I would say we'd fetch in the region of £800 per calendar month.
0:30:53 > 0:30:54I would expect to achieve
0:30:54 > 0:30:57something in the region of £750 per calendar month.
0:30:57 > 0:31:00I was thinking about 800, yeah.
0:31:00 > 0:31:02Yeah, that would be good.
0:31:02 > 0:31:06This was a double first for Nicky. As well as renovating the house,
0:31:06 > 0:31:09she had to deal with her huskies' litter of puppies.
0:31:09 > 0:31:11Storm here is one of them.
0:31:11 > 0:31:16# And they called it puppy love... #
0:31:16 > 0:31:20So, will it be houses or huskies for Nicky in future?
0:31:20 > 0:31:21Oh, that's a hard one.
0:31:21 > 0:31:24I really, really enjoyed the breeding, but no,
0:31:24 > 0:31:28I love being my own boss, being alone with music in the house,
0:31:28 > 0:31:30sorting it out. No, that's me.
0:31:33 > 0:31:37This is the market town of Chester-le-Street in County Durham.
0:31:37 > 0:31:39It's a commuter hotspot,
0:31:39 > 0:31:43with ring roads linking it to Sunderland, Durham and Newcastle,
0:31:43 > 0:31:45all a short drive away.
0:31:45 > 0:31:48Well, literally just a few minutes from the high street
0:31:48 > 0:31:51in this lovely little residential road
0:31:51 > 0:31:52is the property I'm here to see.
0:31:52 > 0:31:55And it sounds like a real good one.
0:31:55 > 0:31:59Three bedrooms, two reception rooms, double fronted mid-terrace.
0:31:59 > 0:32:02Guide price was 49,950 quid.
0:32:02 > 0:32:04Got to be worth a look.
0:32:04 > 0:32:07There are some kerb appeal issues to be dealt with,
0:32:07 > 0:32:09but the house does look solid.
0:32:09 > 0:32:13The double frontage certainly gives it a grand feel.
0:32:13 > 0:32:15Let's hope it doesn't disappoint. So, what have we got?
0:32:15 > 0:32:17A little entrance area there.
0:32:17 > 0:32:21Double fronted, so basically, a living room on one side
0:32:21 > 0:32:22and a living room on the other side.
0:32:22 > 0:32:24That one looks to be in reasonable condition.
0:32:24 > 0:32:25You've got a nice open fire,
0:32:25 > 0:32:28although you'd probably want to sort that out and replace it.
0:32:28 > 0:32:32The whole house feels damp. It feels cold.
0:32:32 > 0:32:34That's probably because it hasn't been lived in for a while.
0:32:34 > 0:32:37Get a bit of central heating on, get some people in here,
0:32:37 > 0:32:39just get the air flowing, and that will sort itself out.
0:32:39 > 0:32:43Nothing too obvious in terms of mould or anything like that,
0:32:43 > 0:32:44which is definitely good news.
0:32:44 > 0:32:48So, as I said, second large living room here.
0:32:48 > 0:32:49So far, so good,
0:32:49 > 0:32:52and then it all starts to go horribly wrong
0:32:52 > 0:32:54as you move towards the rear of the property,
0:32:54 > 0:32:56where you've got this kitchen.
0:32:56 > 0:32:58Now, as you can see, it is in a right state.
0:32:58 > 0:33:00Looks like something is going on with the roof.
0:33:00 > 0:33:02It's not a pleasant space,
0:33:02 > 0:33:05no windows other than the light coming in through the door there,
0:33:05 > 0:33:07so it feels dark and dingy.
0:33:07 > 0:33:08Some kind of a cupboard here.
0:33:08 > 0:33:11Oh, actually, no. It's not a cupboard.
0:33:11 > 0:33:13That is the bathroom and loo.
0:33:13 > 0:33:15Off the kitchen, which isn't good.
0:33:15 > 0:33:18In a right old state, which also isn't good.
0:33:18 > 0:33:20So, good start...
0:33:22 > 0:33:24..went a bit wrong, didn't it?
0:33:24 > 0:33:29Just goes to show, never judge a property on first impressions.
0:33:29 > 0:33:31Still, nothing that can't be fixed,
0:33:31 > 0:33:34assuming there's enough room on the second floor.
0:33:34 > 0:33:40So, upstairs, and a sort of strange layout starts to develop.
0:33:40 > 0:33:42The staircase itself has this return in it,
0:33:42 > 0:33:43which I think is really nice,
0:33:43 > 0:33:46leading onto a little bit more of a landing there,
0:33:46 > 0:33:49which separates two big bedrooms on either side,
0:33:49 > 0:33:51and you've got the small box room in the middle.
0:33:51 > 0:33:54Now, I understand that a lot of these houses on the street
0:33:54 > 0:33:58originally had that as just one big open landing area,
0:33:58 > 0:34:00and I think that would potentially be quite a nice thing to do,
0:34:00 > 0:34:03although, of course, it would mean you would lose
0:34:03 > 0:34:05that third bedroom, which would not be too good,
0:34:05 > 0:34:08especially if you're looking at renting the place out.
0:34:08 > 0:34:12But as it is, that doesn't work, the loo's downstairs,
0:34:12 > 0:34:15there's some layout issues here that need to be addressed.
0:34:15 > 0:34:18Perhaps the answer lies outside.
0:34:18 > 0:34:22Well, at the rear of the property, this little courtyard area.
0:34:22 > 0:34:25Quite a useful extra space, especially as you've got
0:34:25 > 0:34:29access to a rear yard here through this gate,
0:34:29 > 0:34:31so in theory you could park your car here.
0:34:31 > 0:34:34But much more interesting, as far as I'm concerned,
0:34:34 > 0:34:37is the space it gives to potentially build some kind of extension.
0:34:37 > 0:34:41That could be the solution to those layout issues upstairs.
0:34:41 > 0:34:44It would give you a chance to really integrate this kitchen area,
0:34:44 > 0:34:47and just increase the size of the property quite dramatically.
0:34:47 > 0:34:49As ever with these things, it's a case of looking at
0:34:49 > 0:34:51how much is it going to cost to do that extension,
0:34:51 > 0:34:54how much is it going to add to either the quality of life
0:34:54 > 0:34:56of living in the house or the value
0:34:56 > 0:34:58or the potential in terms of rental.
0:34:58 > 0:35:00Weigh up those figures and then make your choice.
0:35:00 > 0:35:03It would definitely need planning permission, though.
0:35:04 > 0:35:07To figure out whether all that work is worthwhile
0:35:07 > 0:35:10in terms of your wallet, we asked a local property expert
0:35:10 > 0:35:11for his opinion on this house,
0:35:11 > 0:35:14guided at £49,950.
0:35:14 > 0:35:17What does he think it could earn per calendar month
0:35:17 > 0:35:19if the layout were reconfigured?
0:35:21 > 0:35:25Rental, I would think probably a guaranteed figure
0:35:25 > 0:35:28of maybe £500 per calendar month,
0:35:28 > 0:35:32upwards to 525 per calendar month depending on the layout
0:35:32 > 0:35:33and how they improve the place.
0:35:33 > 0:35:37If that work was done, what would it be likely to sell for?
0:35:37 > 0:35:40With some minor alterations to the layout
0:35:40 > 0:35:42and obviously, the refurbishment,
0:35:42 > 0:35:46then you're probably looking in the order of about 110, £115,000.
0:35:46 > 0:35:50But the 64,000 dollar question here is,
0:35:50 > 0:35:52is there greater profit to be made
0:35:52 > 0:35:54if the house were extended into the backyard?
0:35:54 > 0:35:57I think an extension done in the right way
0:35:57 > 0:36:01could push the property up to 130 to £140,000.
0:36:01 > 0:36:05What would that extension mean for the rentals?
0:36:05 > 0:36:08You're talking probably £550 per calendar month,
0:36:08 > 0:36:10maybe even a little more.
0:36:11 > 0:36:13Well, a few layout issues,
0:36:13 > 0:36:17and clearly quite a bit of work required to sort this place out.
0:36:17 > 0:36:19However, I think at that guide price,
0:36:19 > 0:36:23this represented a really good investment opportunity for someone.
0:36:23 > 0:36:26Let's find out who that was when it went under the hammer.
0:36:28 > 0:36:31We're now going to go down to Chester-le-Street.
0:36:31 > 0:36:32The double-fronted town house.
0:36:32 > 0:36:34I need 50 to start. We won't go below.
0:36:34 > 0:36:38Great price, this. 50,000. Gentleman sitting down at 50.
0:36:38 > 0:36:40Thank you very much. We're up and going at 50,000.
0:36:40 > 0:36:4251 anywhere else?
0:36:42 > 0:36:4351,000 standing.
0:36:43 > 0:36:45I've got another bid of 51,000.
0:36:45 > 0:36:4752 bid. 53.
0:36:47 > 0:36:4954. 55.
0:36:49 > 0:36:5356. Gentleman at 55,000.
0:36:53 > 0:36:56A new hand, gentleman sitting down at 56. 57.
0:36:56 > 0:36:5858. 59.
0:36:58 > 0:36:5960. 61.
0:36:59 > 0:37:0262. 63.
0:37:02 > 0:37:0364. 65.
0:37:03 > 0:37:0466.
0:37:07 > 0:37:09I'll take 500.
0:37:09 > 0:37:11500 bid. 65 and a half.
0:37:11 > 0:37:1466. 66 and a half.
0:37:14 > 0:37:1767. 67 and a half.
0:37:19 > 0:37:21£67,000 standing.
0:37:21 > 0:37:23It's your last chance. I'm going to sell.
0:37:23 > 0:37:25I'm selling it once at 67.
0:37:25 > 0:37:28For the second time, £67,000.
0:37:28 > 0:37:30Sold to the gentleman in the white shirt.
0:37:30 > 0:37:33It was husband and wife Paul and Karen,
0:37:33 > 0:37:36along with their son Jordan, who bought the lot for 67,000.
0:37:38 > 0:37:41Paul quit his job in the Prison Service several years ago
0:37:41 > 0:37:44to focus on renovating properties.
0:37:44 > 0:37:47Karen works full-time for the local council.
0:37:47 > 0:37:50Together, they've built up a small portfolio of investments,
0:37:50 > 0:37:54so I was keen to discover exactly what they had in mind here.
0:37:54 > 0:37:57- Karen, Paul, lovely to meet you. - All right?- Congratulations.
0:37:57 > 0:37:59- Thank you.- Good house.
0:37:59 > 0:38:01- Very good, yeah. - Tell me why you wanted to buy it.
0:38:01 > 0:38:04Well, we are actually property developers.
0:38:04 > 0:38:06This is kind of what we do for a living.
0:38:06 > 0:38:09- This is number six in the portfolio, isn't it?- Yes.
0:38:09 > 0:38:13- So it's just another big job.- Great. - Something else to get the teeth into.
0:38:13 > 0:38:15So how do you define being a property developer?
0:38:15 > 0:38:19Well, I kind of got bored of the job I was doing.
0:38:19 > 0:38:21I got fat and bored, so I thought well,
0:38:21 > 0:38:24- I'll come and do something different. - What were you doing before?
0:38:24 > 0:38:26- I used to work in the Prison Service. - OK.
0:38:26 > 0:38:28So it was kind of a big leap, something different.
0:38:28 > 0:38:32So what inspired you to go down this avenue?
0:38:32 > 0:38:34I saw an opportunity and really enjoyed the challenges,
0:38:34 > 0:38:37and wanted to get involved in property,
0:38:37 > 0:38:40so I persuaded him, worked my magic.
0:38:40 > 0:38:41When was that?
0:38:41 > 0:38:44Back in 2007 is when I really started looking
0:38:44 > 0:38:48and investigating the possibilities,
0:38:48 > 0:38:51- and then I found this quite good bargain, didn't I?- Yeah.
0:38:51 > 0:38:53We didn't start from a little renovation project
0:38:53 > 0:38:56which was quite simple. We bought a house,
0:38:56 > 0:38:58had to rebuild it bricks by bricks on the side.
0:38:58 > 0:39:01Everybody says you find the worst possible house you can do
0:39:01 > 0:39:04- and start from there. That's what we did, didn't we?- Do they?! Right.
0:39:04 > 0:39:07It was a good project. It turned out really nice in the end.
0:39:07 > 0:39:08- It did, yes. - We were quite pleased with it.
0:39:08 > 0:39:12For Paul, the Prison Service was obviously
0:39:12 > 0:39:14arresting his development...
0:39:14 > 0:39:17# I'm free to do what I want
0:39:17 > 0:39:19# Any old time... #
0:39:21 > 0:39:24..while Karen has the skills that might prove handy
0:39:24 > 0:39:26when it comes to renovating properties,
0:39:26 > 0:39:30as she works full-time for the council in emergency planning.
0:39:30 > 0:39:32So what kind of emergencies do you plan for?
0:39:32 > 0:39:35Anything that affects the public, such as flooding,
0:39:35 > 0:39:38if there is power outages, you need evacuation.
0:39:38 > 0:39:39Anything, really.
0:39:39 > 0:39:42- So you're good in a crisis, are you? - Well, I would like to think so.
0:39:42 > 0:39:44THEY LAUGH
0:39:45 > 0:39:48Paul and Karen's early experiences in development
0:39:48 > 0:39:49were a bit of a rollercoaster ride,
0:39:49 > 0:39:53as the property market collapsed just as they were getting started.
0:39:53 > 0:39:56That meant their profit margins were squeezed.
0:39:56 > 0:39:59Undaunted, they've managed to build up a small portfolio,
0:39:59 > 0:40:01and their intention with this house
0:40:01 > 0:40:03is to sell it on after some major work.
0:40:03 > 0:40:07Well, all the back end is going to have a double story extension on.
0:40:07 > 0:40:09- Oh, wow.- Demolish what's at the back now,
0:40:09 > 0:40:12cos it's all rotten and falling to bits. Build it up.
0:40:12 > 0:40:14Upstairs bathroom, add another bedroom,
0:40:14 > 0:40:17and then knock out that odd-shaped bedroom at the top of the landing.
0:40:17 > 0:40:20And see what we can do, just kind of see how it comes out.
0:40:20 > 0:40:22- We get the feel for them as we go.- Yeah.
0:40:22 > 0:40:25There's a lot of alterations needed to make this property
0:40:25 > 0:40:26good standard, really.
0:40:26 > 0:40:29Yeah, we're thinking about putting period fireplaces and stuff back in.
0:40:29 > 0:40:31- Nice.- If we can.
0:40:31 > 0:40:33What's the rough cost of the extension?
0:40:33 > 0:40:37- We'll be looking with a budget of around 30.- To do what?
0:40:37 > 0:40:38- To do everything.- To do everything.
0:40:38 > 0:40:40So how much of that is the extension, though?
0:40:40 > 0:40:44- There might be 15 to 20,000 in the extension.- OK.
0:40:44 > 0:40:46But then, we're putting kitchens, bathrooms,
0:40:46 > 0:40:48new heating systems, rewire.
0:40:48 > 0:40:50Needs a roof. Everything needs doing.
0:40:50 > 0:40:53We save a lot of money because
0:40:53 > 0:40:56Paul does a lot of the labouring himself,
0:40:56 > 0:40:58- so we have minimal costs for labour.- Good.
0:40:58 > 0:41:02And what about other members of the family? Are they getting involved?
0:41:02 > 0:41:04Yeah, we've got a little boy. Well, he's not so little.
0:41:04 > 0:41:06- Yeah, he's a big lad. - Yeah, quite a big lad.
0:41:06 > 0:41:09- He likes tiling, doesn't he? - He likes getting involved.
0:41:09 > 0:41:12- He likes tiling?- Tiling, yeah. - He's learning the trade early.
0:41:12 > 0:41:14- Have you got him plumbing and roofing yet?- Not yet!
0:41:14 > 0:41:18- He'd give it a go, though, wouldn't he?- Oh, he gives anything a go.
0:41:18 > 0:41:20Start them young, that's what I say.
0:41:20 > 0:41:23Friends and family are also pitching in on this particular job,
0:41:23 > 0:41:26but nothing will start until planning permission
0:41:26 > 0:41:28for the extension has been approved,
0:41:28 > 0:41:30which should take around eight or nine weeks.
0:41:30 > 0:41:32Then it's going to be hard graft,
0:41:32 > 0:41:35with a schedule of four to five months
0:41:35 > 0:41:38to complete the renovation. The lifestyle, then,
0:41:38 > 0:41:42has changed quite a lot from a 9-to-5 job or whatever it was -
0:41:42 > 0:41:44I don't know if it was shiftwork - to the lifestyle now.
0:41:44 > 0:41:46How would you compare the two?
0:41:46 > 0:41:47Oh, fantastic, isn't it?
0:41:47 > 0:41:50You can have holidays when you want, you do what you want.
0:41:50 > 0:41:52I think it has its peaks and troughs,
0:41:52 > 0:41:54because when you're nearing the end of a project,
0:41:54 > 0:41:56you end up spending a lot more time there,
0:41:56 > 0:41:59it takes up more weekends, it takes up nights.
0:41:59 > 0:42:01But when you finish that,
0:42:01 > 0:42:04at least you have a bit of a rest period afterwards.
0:42:04 > 0:42:07Brilliant. Well, listen, congratulations, both of you.
0:42:07 > 0:42:09Good luck with it. I'll look forward to seeing how you get on.
0:42:09 > 0:42:11- OK.- Thank you.
0:42:12 > 0:42:17Well, Paul and Karen really appreciating the benefits
0:42:17 > 0:42:19that being a property developer can bring.
0:42:19 > 0:42:23It's not just about the money, it's a lifestyle thing.
0:42:23 > 0:42:25How will they get on with this place?
0:42:25 > 0:42:29Well, lots of work to do, a tight budget and yes,
0:42:29 > 0:42:32planning permission by no means guaranteed.
0:42:32 > 0:42:35You can find out how they get on later in the show.
0:42:38 > 0:42:39Now time has passed,
0:42:39 > 0:42:42I want to find out what has happened to those properties.
0:42:42 > 0:42:44Are we confident that they will look brand new?
0:42:44 > 0:42:46Oh, let's hope so.
0:42:48 > 0:42:51Back now to the Leicestershire town of Shepshed,
0:42:51 > 0:42:53a popular choice for commuters
0:42:53 > 0:42:55working in Loughborough or Nottingham.
0:42:55 > 0:42:58That's where local couple Steve and his wife Vicky
0:42:58 > 0:43:03paid £60,000 for this 324 square-metre plot of land,
0:43:03 > 0:43:06formerly part of the rear car park and gardens of this pub.
0:43:06 > 0:43:09# Do you come from a land down under? #
0:43:11 > 0:43:13They've recently returned from Australia,
0:43:13 > 0:43:15and were attracted to the land,
0:43:15 > 0:43:19which had planning permission for a pair of two-bedroomed houses.
0:43:19 > 0:43:22We came back from Australia. We've been out there for 12 months,
0:43:22 > 0:43:25and we just wanted to do something different.
0:43:25 > 0:43:28So we saw this block of land, it was affordable,
0:43:28 > 0:43:29so we decided to try and buy it.
0:43:29 > 0:43:33The couple had dabbled in property development for 12 years,
0:43:33 > 0:43:36and were going to project manage the new build.
0:43:36 > 0:43:39They were considering submitting revised plans for the houses.
0:43:41 > 0:43:43There is potential to go to three beds,
0:43:43 > 0:43:46which obviously may increase the value of the properties,
0:43:46 > 0:43:47so we'll just see what happens.
0:43:47 > 0:43:49Just something to bear in mind, isn't it?
0:43:49 > 0:43:54Well, two years and two and a half months later, we've come back.
0:43:54 > 0:44:01# The houses reach into the skies... #
0:44:01 > 0:44:04And the new houses have been built,
0:44:04 > 0:44:06and Steve and Vicky were successful
0:44:06 > 0:44:08with their revised planning application.
0:44:12 > 0:44:17Each semi now has a third bedroom in the roof space. So far, so good.
0:44:17 > 0:44:21But as I've said, it's been over two years since we were last here.
0:44:21 > 0:44:23There's still building work going on,
0:44:23 > 0:44:27so clearly their intended 12-month schedule has slipped somewhat.
0:44:27 > 0:44:30We resubmitted a planning application
0:44:30 > 0:44:31and construction started,
0:44:31 > 0:44:36and it's been about seven months now since construction,
0:44:36 > 0:44:38and as you can see, the properties are almost finished.
0:44:38 > 0:44:43Another developer's built two other houses next to the former pub,
0:44:43 > 0:44:46but work on Steve's two houses was delayed
0:44:46 > 0:44:49due to his revised planning application
0:44:49 > 0:44:50and the difficult terrain.
0:44:52 > 0:44:54Out here was a major, major job.
0:44:54 > 0:44:57We've had to remove quite a lot of earth.
0:44:57 > 0:45:01In total, I think there was something like 400 tonnes of earth.
0:45:01 > 0:45:04So obviously, still quite a lot of work
0:45:04 > 0:45:06that needs to be taking place here.
0:45:06 > 0:45:11We're going to have a tiered garden, patio area and retaining walls.
0:45:11 > 0:45:16Both houses are now ready for the interior second fit.
0:45:16 > 0:45:17In terms of layout down here,
0:45:17 > 0:45:21what we've got is a downstairs cloakroom,
0:45:21 > 0:45:24we've got a kitchen and a lounge cum dining room,
0:45:24 > 0:45:28and then on the second floor, we've got two bedrooms,
0:45:28 > 0:45:30we've got a main bathroom,
0:45:30 > 0:45:32and then on the top floor we've got a cloakroom,
0:45:32 > 0:45:36another bedroom and an en suite, and hopefully,
0:45:36 > 0:45:39we've got about five months left of the project till completion.
0:45:39 > 0:45:43Steve's returned to full-time work as an aero engineer,
0:45:43 > 0:45:47and Vicky's managing another project the couple are involved in.
0:45:47 > 0:45:49We've tried to come down on a regular basis.
0:45:49 > 0:45:52We've not really got involved in the construction side of things.
0:45:52 > 0:45:56We've sort of kept a backseat, as it were, and just left it
0:45:56 > 0:45:58to our builder-developer to project manage it
0:45:58 > 0:46:02and keep things on time, as it were.
0:46:02 > 0:46:04What have been the financial implications
0:46:04 > 0:46:08of the delayed start and that extra bedroom up in the roof?
0:46:08 > 0:46:12Currently we've spent about 60,000 on the project.
0:46:12 > 0:46:16We've probably potentially got at least another 60,000 to spend on it.
0:46:16 > 0:46:18Added to the £60,000 they paid at auction,
0:46:18 > 0:46:22that takes their total investment to £180,000.
0:46:22 > 0:46:26So, what's the plan for them when they're completed?
0:46:26 > 0:46:28Hopefully towards the back end of the year,
0:46:28 > 0:46:30the properties will be finished
0:46:30 > 0:46:33and then we can possibly look to either rent them or sell them.
0:46:34 > 0:46:37We invited two local estate agents
0:46:37 > 0:46:39to look at the current state of the builds,
0:46:39 > 0:46:41and tell us what they think the potential is
0:46:41 > 0:46:43for the houses once they are ready.
0:46:43 > 0:46:45I think it's fantastic.
0:46:45 > 0:46:49The property has developed more than I thought,
0:46:49 > 0:46:51because originally it was going to be two bedrooms,
0:46:51 > 0:46:54and they've made it into a three-storey three bed.
0:46:54 > 0:46:56And I think that was the right thing to do.
0:46:56 > 0:46:58Yes, I think going into the roof space
0:46:58 > 0:47:01and putting that additional bedroom in,
0:47:01 > 0:47:03making it from a two to a three, was a good idea.
0:47:03 > 0:47:07It gives a bit more flexibility to the market.
0:47:07 > 0:47:11It opens it up to first-time buyers and small family units as well.
0:47:13 > 0:47:15How much rental income could they generate
0:47:15 > 0:47:17if they were let to tenants?
0:47:19 > 0:47:22The rental market is extremely strong in and around Shepshed,
0:47:22 > 0:47:26and I would suggest that it would yield at around
0:47:26 > 0:47:28£600 per calendar month.
0:47:28 > 0:47:30Rental very strong. We'd probably be looking at
0:47:30 > 0:47:33marketing the property at about £600 a calendar month.
0:47:33 > 0:47:35That's a potential yield of 8%
0:47:35 > 0:47:39if Steve decided to let both the properties.
0:47:39 > 0:47:41That's very good.
0:47:41 > 0:47:44That's in line with what we thought initially.
0:47:44 > 0:47:46If we do go down the route of renting them out,
0:47:46 > 0:47:48then obviously that would make us
0:47:48 > 0:47:50quite a good return on our investment.
0:47:50 > 0:47:52And what about resale?
0:47:52 > 0:47:54Can the estate agents foresee the houses
0:47:54 > 0:47:58being worth more than the £180,000 Steve has invested here?
0:47:58 > 0:48:02In the current market, I value this property at £135,000.
0:48:02 > 0:48:06I would suggest, depending on specification when it's finished,
0:48:06 > 0:48:11that we be looking at probably in the region of £135,000.
0:48:11 > 0:48:12If both houses were sold,
0:48:12 > 0:48:16that could generate a gross profit of £90,000
0:48:16 > 0:48:18before taxes and expenses.
0:48:19 > 0:48:22Initially, that sounds a little bit low, OK.
0:48:22 > 0:48:24Obviously, I appreciate they're unfinished,
0:48:24 > 0:48:28so obviously it's very difficult to put a perfect valuation
0:48:28 > 0:48:31on the properties, but again,
0:48:31 > 0:48:34obviously we do need to get them up to a level
0:48:34 > 0:48:37that hopefully will get more money for them.
0:48:40 > 0:48:43So now Steve and Vicky have experience of managing
0:48:43 > 0:48:46a new-build project here and in Australia.
0:48:46 > 0:48:49Are they pleased they returned to the UK?
0:48:50 > 0:48:51Yes, definitely.
0:48:51 > 0:48:54100% happy to be back to the UK. Yeah, for sure,
0:48:54 > 0:48:58and hopefully in the future, we'll do other projects.
0:49:02 > 0:49:05It's back now to Chester-le-Street in County Durham,
0:49:05 > 0:49:08where this Victorian three-bed terraced house
0:49:08 > 0:49:12was bought for £67,000 by husband-and-wife team
0:49:12 > 0:49:15Paul and Karen, accompanied by their son Jordan.
0:49:15 > 0:49:18Sold to the gentleman in the white shirt.
0:49:18 > 0:49:20For Karen, property developing is a sideline,
0:49:20 > 0:49:22as she still works full-time
0:49:22 > 0:49:24as an emergency planner for the council,
0:49:24 > 0:49:27but Paul gave up a job in the Prison Service
0:49:27 > 0:49:31to set himself free to concentrate on renovating properties.
0:49:31 > 0:49:33The lifestyle, then, has changed quite a lot
0:49:33 > 0:49:35from a 9-to-5 job or whatever it was -
0:49:35 > 0:49:38I don't know if it was shift work - to the lifestyle now.
0:49:38 > 0:49:41- How would you compare the two? - Oh, fantastic, isn't it?
0:49:41 > 0:49:44You can have holidays when you want. You do what you want.
0:49:44 > 0:49:47Jordan is also involved in the family business.
0:49:47 > 0:49:50- Have you got him plumbing and roofing yet?- Not yet!
0:49:50 > 0:49:52He'd give it a go, though, wouldn't he?
0:49:52 > 0:49:53- Oh, he gives anything go.- He does.
0:49:53 > 0:49:57I reckon they might need a rest after dealing with this place.
0:49:57 > 0:49:59The problems range from damp on the ground floor
0:49:59 > 0:50:02to a run-down kitchen and bathroom out back,
0:50:02 > 0:50:04and an odd layout up top.
0:50:04 > 0:50:07Paul and Karen had a £30,000 budget
0:50:07 > 0:50:10and thought that a rear extension was the only way to fix this place.
0:50:10 > 0:50:12So we returned 10 months later
0:50:12 > 0:50:15to see if they had achieved a miracle cure.
0:50:15 > 0:50:18And from the outside, well,
0:50:18 > 0:50:20the front of the house has been cleaned up.
0:50:20 > 0:50:23Freshly painted windows and a new front door
0:50:23 > 0:50:26have certainly given the frontage more appeal.
0:50:26 > 0:50:28But take a look at the back,
0:50:28 > 0:50:32and a glorious two-storey extension has been built.
0:50:33 > 0:50:35And through those patio doors?
0:50:38 > 0:50:42Well, there's a wonderful, light, spacious kitchen
0:50:42 > 0:50:44ready and waiting to be used.
0:50:45 > 0:50:49Upstairs, the old half landing now opens up onto the new extension,
0:50:49 > 0:50:51leading to the stylish bathroom suite.
0:50:53 > 0:50:55The extension also houses a new bedroom.
0:50:58 > 0:51:01But the star of this whole new addition is the kitchen.
0:51:02 > 0:51:05Right, so I'm standing in what was the old bathroom.
0:51:05 > 0:51:07We've had the walls and everything come out,
0:51:07 > 0:51:09so this is all the new extension.
0:51:09 > 0:51:10We had some delays with planning
0:51:10 > 0:51:13because we had to get structural engineers involved
0:51:13 > 0:51:16because we've had to underpin all this back wall along here.
0:51:16 > 0:51:18But I think it's come together quite nice.
0:51:18 > 0:51:20We've gone with a very Victorian theme,
0:51:20 > 0:51:23put the fake chimney breast in, and I built that one last night,
0:51:23 > 0:51:26but I think it's come out quite nice with the worktops,
0:51:26 > 0:51:29the Belfast sink, and I think it's quite nice.
0:51:29 > 0:51:31Quite a nice room.
0:51:31 > 0:51:34Paul has done a grand job, but it doesn't end there.
0:51:34 > 0:51:38At the front of the house, the original ground floor rooms
0:51:38 > 0:51:42are now light, open spaces, retaining their character features.
0:51:42 > 0:51:43One has an open fire,
0:51:43 > 0:51:47while the second reception room has an inglenook fireplace,
0:51:47 > 0:51:49housing a log burner.
0:51:49 > 0:51:51Upstairs, the old box room has gone,
0:51:51 > 0:51:53which opens up that landing,
0:51:53 > 0:51:56with new doorways leading to the original bedrooms.
0:51:58 > 0:52:02Again, both are restored and possess delightful character.
0:52:03 > 0:52:06The loss of the box room has been compensated for
0:52:06 > 0:52:08by the new bedroom in the extension,
0:52:08 > 0:52:11so that the house still has three bedrooms.
0:52:11 > 0:52:12And that's not all.
0:52:12 > 0:52:15There's been an extension to Paul and Karen's family
0:52:15 > 0:52:18with the arrival of their baby, four-month-old Brooke.
0:52:19 > 0:52:21We've had a baby girl, a baby daughter,
0:52:21 > 0:52:23and she is four months old,
0:52:23 > 0:52:27and that's obviously delayed the project a little bit.
0:52:27 > 0:52:28Yeah, just a bit, yeah!
0:52:28 > 0:52:30Yeah, we actually took all of August off.
0:52:30 > 0:52:32We took a nice long holiday so we could get to know her.
0:52:32 > 0:52:35Yeah, so the family could spend some time together,
0:52:35 > 0:52:37and she could spend some quality time with her brother as well.
0:52:37 > 0:52:40Baby Brooke's arrival meant that the original schedule
0:52:40 > 0:52:43was stretched from seven to ten months.
0:52:43 > 0:52:45That delay was understandable,
0:52:45 > 0:52:47but apart from underpinning the main extension,
0:52:47 > 0:52:50there was another major drawback to contend with.
0:52:51 > 0:52:54Well, the damp was a big problem.
0:52:54 > 0:52:57We had to chip the plaster just over a metre off the walls
0:52:57 > 0:53:01on every wall downstairs, and then we had a damp course injected,
0:53:01 > 0:53:03and to be honest, a lot of it failed.
0:53:03 > 0:53:06The company said that they might have to clear the cavities out,
0:53:06 > 0:53:09so I had to dismantle all the brickwork on the outside
0:53:09 > 0:53:12and clear everything out, and then build it all back up.
0:53:12 > 0:53:14The entire property is now damp proof,
0:53:14 > 0:53:18and removing the brickwork revealed that inglenook fireplace,
0:53:18 > 0:53:20which was an unexpected bonus.
0:53:20 > 0:53:23The original building has had a total overhaul,
0:53:23 > 0:53:26from replastering to rewiring.
0:53:26 > 0:53:29Builders built their new extension with qualified tradesmen on hand
0:53:29 > 0:53:31to do the electrics and plumbing.
0:53:31 > 0:53:34That left Paul to do the rest, with help, of course,
0:53:34 > 0:53:36from 11-year-old Jordan.
0:53:36 > 0:53:39- He loves helping, doesn't he? - Yeah, he likes to get involved.
0:53:39 > 0:53:42He does, he likes getting involved. He likes doing a bit of painting.
0:53:42 > 0:53:44- He's been a great help. - Yeah, a really good help.
0:53:44 > 0:53:47- Does a lot of cleaning and tidying as well.- And he does baby-sitting.
0:53:47 > 0:53:50- Very good at baby-sitting. - Very good at baby-sitting, yeah.
0:53:50 > 0:53:53Possibly the most important job of all.
0:53:55 > 0:53:59Paul and Karen estimated a budget of £30,000 for all the work,
0:53:59 > 0:54:01and amazingly, estimate the final figure
0:54:01 > 0:54:04for this renovation will be 33,000.
0:54:04 > 0:54:07So with their purchase price of 67,000,
0:54:07 > 0:54:10their total outlay is around 100,000.
0:54:10 > 0:54:12Well done!
0:54:12 > 0:54:14It is an impressive transformation,
0:54:14 > 0:54:17and one that has almost changed their minds
0:54:17 > 0:54:19about what they want to do with this place.
0:54:19 > 0:54:23The plans that we had for this property, ideally, is to sell it.
0:54:23 > 0:54:25I would like to move in it, personally,
0:54:25 > 0:54:28because I'm really pleased with how it's ended up,
0:54:28 > 0:54:30but that's not going to be.
0:54:30 > 0:54:34If it doesn't sell because of the market,
0:54:34 > 0:54:36we might have to look at renting it out,
0:54:36 > 0:54:37but for a rental house,
0:54:37 > 0:54:40- we wouldn't have done it to this standard.- Yeah.
0:54:40 > 0:54:42And that's ideally why we have to sell.
0:54:43 > 0:54:45The couple have been caught out
0:54:45 > 0:54:48by the ups and downs of the property market before,
0:54:48 > 0:54:50so it's no wonder they are a bit anxious.
0:54:50 > 0:54:52Do two local property experts
0:54:52 > 0:54:56reckon they're home and dry with this £100,000 investment?
0:54:56 > 0:54:58Overall impression - a job well done.
0:54:58 > 0:55:01A Victorian house has been refurbished in the right way,
0:55:01 > 0:55:03which is important in terms of the finish
0:55:03 > 0:55:06that they've put into the house. Really nice job, yeah.
0:55:06 > 0:55:07Having looked around,
0:55:07 > 0:55:09the owner's paid particular attention
0:55:09 > 0:55:12to the kitchen and bathroom, and overall, the property's been finished
0:55:12 > 0:55:14to a very high standard throughout.
0:55:14 > 0:55:18Has the extension given the house a new lease of life?
0:55:18 > 0:55:20I think the extension in this case was crucial
0:55:20 > 0:55:24to create a good-sized bathroom, make a bigger kitchen.
0:55:24 > 0:55:26The two main features of the house.
0:55:26 > 0:55:28It's worked fantastically well.
0:55:28 > 0:55:32But what impact has it made on Paul and Karen's potential returns?
0:55:32 > 0:55:36Remember, they've spent about £100,000.
0:55:36 > 0:55:40So, with plans to sell, what could they expect if they did?
0:55:40 > 0:55:43I would probably be looking to put the property on the market
0:55:43 > 0:55:44at around £150,000.
0:55:44 > 0:55:46I valued it at £150,000.
0:55:46 > 0:55:49- Higher, actually, than what I expected.- Higher than
0:55:49 > 0:55:51- what we originally worked on, yeah. - I'm pleased with that.
0:55:51 > 0:55:54I think we only worked on about 135, 140 originally.
0:55:54 > 0:55:57Yeah, it was about 135 upwards, so I'm really pleased with that.
0:55:57 > 0:56:00It's nice, yeah. It makes you feel good about we've done. It's great.
0:56:00 > 0:56:02No wonder they're pleased.
0:56:02 > 0:56:07Paul and Karen could achieve a potential £50,000 profit,
0:56:07 > 0:56:09minus the usual tax and expenses.
0:56:09 > 0:56:11But should the house fail to sell,
0:56:11 > 0:56:14the estate agents reckon they could expect
0:56:14 > 0:56:16£650 to £700 per calendar month,
0:56:16 > 0:56:19giving them a healthy yield of around 8%.
0:56:24 > 0:56:28So, with the house ready to be sold and a new baby to look after,
0:56:28 > 0:56:30what are their plans now?
0:56:30 > 0:56:34- Probably back to the auctions, isn't it?- No. We need a rest.
0:56:34 > 0:56:37- Especially with Brooke coming along, we need a rest.- Yeah.
0:56:37 > 0:56:40Maybe we'll have another month off, then we'll be back to the auctions.
0:56:47 > 0:56:50Join us next time for more auction properties to whet your appetite.
0:56:50 > 0:56:54Yes, we hope we've inspired you and given you an insight
0:56:54 > 0:56:57into the world of buying at auction here on Homes Under The Hammer.
0:56:57 > 0:57:00- We look forward to seeing you then. - Goodbye.- Goodbye.
0:57:21 > 0:57:24Subtitles by Red Bee Media Ltd