0:00:02 > 0:00:03Hello. In today's challenging market,
0:00:03 > 0:00:06do you think you could hack it in the world of property?
0:00:06 > 0:00:09If you get it right, it can be an exciting way to earn money.
0:00:09 > 0:00:12Yes, and it can be even more rewarding
0:00:12 > 0:00:14buying your Homes Under The Hammer.
0:00:40 > 0:00:42There are tense moments in the auction room.
0:00:42 > 0:00:45Who will make the right bid at the right time?
0:00:45 > 0:00:49Yes, properties can change people's fortune, for better or worse,
0:00:49 > 0:00:52so what inspired the buyers today?
0:00:54 > 0:00:58In Kent, first-time developer Tom takes on this terrace.
0:00:58 > 0:01:00Could there be trouble ahead?
0:01:00 > 0:01:03- What are you worried about with this project?- Everything.
0:01:04 > 0:01:06And in Carlisle,
0:01:06 > 0:01:11what is it about this one-bedroom flat that's giving me nightmares?
0:01:11 > 0:01:13HE YELPS
0:01:15 > 0:01:18These properties have been sold at auction.
0:01:18 > 0:01:20We'll find out who bought them and what they paid for them
0:01:20 > 0:01:22when they went under the hammer.
0:01:29 > 0:01:33Now, to a former industrial town on the Kent coast.
0:01:33 > 0:01:36Chatham is well-known for its maritime connections,
0:01:36 > 0:01:40and it was the business and industry that grew from its busy docks
0:01:40 > 0:01:44that once upon a time made this place affluent.
0:01:44 > 0:01:47Modern times have proven tougher, and despite being in the South East,
0:01:47 > 0:01:52property prices here are still resolutely low.
0:01:52 > 0:01:57Roads like this are a clear reminder of Chatham's industrial past.
0:01:57 > 0:02:00Now, the terraces just seem to go on for miles, and would have
0:02:00 > 0:02:04housed dockyard workers when Chatham was buzzing with industry.
0:02:04 > 0:02:07Today, the houses are at the lower end of the scale,
0:02:07 > 0:02:09but they still make very decent homes.
0:02:09 > 0:02:12Now, the one I'm here to see is this.
0:02:12 > 0:02:17It's got three bedrooms and it had a guide price of 75-85,000,
0:02:17 > 0:02:21and it sits at the top of a very steep hill.
0:02:21 > 0:02:22Exactly as I expected,
0:02:22 > 0:02:25on the inside, you've got a great space, here.
0:02:25 > 0:02:28I don't think this is damp, it was probably a bit of condensation,
0:02:28 > 0:02:32because this is an external wall, so nothing to worry about there.
0:02:32 > 0:02:34Could have a look and see if you've got
0:02:34 > 0:02:38a nice little fireplace under there, but a really good room.
0:02:38 > 0:02:40And then, you've got the stairs leading to three bedrooms,
0:02:40 > 0:02:42and a second reception room.
0:02:42 > 0:02:45Now, I can see straight away - sofa here, sofa there,
0:02:45 > 0:02:49or great big table. You can have all the kids having dinner.
0:02:49 > 0:02:52It's really big enough to do anything you want in this room,
0:02:52 > 0:02:53which is good.
0:02:53 > 0:02:56You've got a door which leads out to the garden, and the kitchen.
0:02:56 > 0:02:59Now, the good news is, it's not in bad nick.
0:02:59 > 0:03:01You could actually leave it as it is.
0:03:01 > 0:03:06Sadly though, the boiler's gone, so you'd have to factor that into it.
0:03:06 > 0:03:08The boiler was, in fact, stolen from the property,
0:03:08 > 0:03:13and replacing it means extra expense for any potential buyer.
0:03:13 > 0:03:15You know, you've got the bathroom right at the back,
0:03:15 > 0:03:17and there's enough space in between to,
0:03:17 > 0:03:19sort of, differentiate between the two areas.
0:03:19 > 0:03:22So it's a great property, I really like it,
0:03:22 > 0:03:24but I'd like to check out the rooms upstairs.
0:03:26 > 0:03:31What have we got? Well, the bedroom at the front is a good size,
0:03:31 > 0:03:36as is the second, but the bad news is that to get to the third bedroom,
0:03:36 > 0:03:39well, you have to go through this one,
0:03:39 > 0:03:45and that third room is an extension, which means it has a lower ceiling.
0:03:45 > 0:03:48So there are gardens, and then there are gardens.
0:03:48 > 0:03:52Now, I was expecting to see a yard out here,
0:03:52 > 0:03:55but actually, it's not quite that.
0:03:55 > 0:03:57But, you know, could you make use of it?
0:03:57 > 0:03:59Well, you've got a little terrace area, here,
0:03:59 > 0:04:02which you could sit outside, have a little barbecue,
0:04:02 > 0:04:06more steps, little grass areas here,
0:04:06 > 0:04:08more steps... Maybe you could do something there.
0:04:08 > 0:04:11You certainly won't be playing cricket and rounders out the back,
0:04:11 > 0:04:15that's for sure. And you've got to climb up here,
0:04:15 > 0:04:17and you've got a little grassed area here.
0:04:17 > 0:04:21You've got fantastic views over Chatham, but this is
0:04:21 > 0:04:25the type of garden that's been taken to a whole other level.
0:04:25 > 0:04:27Phew.
0:04:28 > 0:04:31So what does a local estate agent think of this property,
0:04:31 > 0:04:34guided at 75-85,000?
0:04:35 > 0:04:39I'd expect you to get around about 100, possibly slightly more,
0:04:39 > 0:04:41but then that would be competing against
0:04:41 > 0:04:43probably better properties in the area.
0:04:43 > 0:04:45The maximum you'd achieve per calendar month
0:04:45 > 0:04:48on a rental property here would be £600.
0:04:48 > 0:04:50They're not hard properties to rent.
0:04:50 > 0:04:52A solid standard terrace
0:04:52 > 0:04:54that would rent as soon as it's renovated,
0:04:54 > 0:04:56just what plenty of people are after,
0:04:56 > 0:04:58so let's see who bid at the auction.
0:05:00 > 0:05:02Three-bedroom terraced house for improvement,
0:05:02 > 0:05:04it's got gas heating, double glazing
0:05:04 > 0:05:05and vacant possession.
0:05:05 > 0:05:08£80,000, can I say? Give me 75, then.
0:05:08 > 0:05:1175? 75 bid, I have.
0:05:11 > 0:05:1380, I'm looking for. At 80, do I see?
0:05:13 > 0:05:16At 80, I'm bid. 85 is against you.
0:05:16 > 0:05:1885, do I say?
0:05:18 > 0:05:19At £80,000, then, I've got.
0:05:19 > 0:05:222, anywhere else? 82, I'm obliged.
0:05:22 > 0:05:2484, now, do I say?
0:05:24 > 0:05:2584, back to you, sir.
0:05:25 > 0:05:2786, it's against you.
0:05:27 > 0:05:2986, if you wish. Are we all...?
0:05:29 > 0:05:3286 bid. 88, now, if you like.
0:05:32 > 0:05:36At 86,000, 88? No?
0:05:36 > 0:05:40At £86,000, standing at the back, 88, I want.
0:05:40 > 0:05:41Are we all done at £86,000?
0:05:41 > 0:05:43I will sell for the first time.
0:05:43 > 0:05:47£86,000, standing at the back, for the second time.
0:05:47 > 0:05:52Third and final time, at £86,000, are we sure we're all done?
0:05:52 > 0:05:5486,000, and the number, please.
0:05:56 > 0:06:00That final bid of £86,000 was made by Tom, who's a builder
0:06:00 > 0:06:04and already got his hands, well, rather full.
0:06:04 > 0:06:06MUSIC: Daddy Cool by Boney M
0:06:06 > 0:06:12# Daddy, Daddy Cool Daddy, Daddy Cool... #
0:06:12 > 0:06:14This is his first investment project,
0:06:14 > 0:06:17and he's hoping to turn this property around rather quickly,
0:06:17 > 0:06:19and get it back on the open market.
0:06:19 > 0:06:22And why did you decide to go down the auction route?
0:06:22 > 0:06:25- Erm, well, I'm a fan of the show, you know...- Yay!
0:06:25 > 0:06:29Obviously, seemed...just a good way to use a bit of money.
0:06:29 > 0:06:32You know, we've done it on loan, so obviously,
0:06:32 > 0:06:37it's a case of get moving and turn it around as quick as possible.
0:06:37 > 0:06:40So, with the purchase price of 86,000,
0:06:40 > 0:06:46and a budget of nine to ten grand, there's only one thing on my mind.
0:06:46 > 0:06:48Where's your profit?
0:06:48 > 0:06:52Erm, I've got no expectations of making a huge amount on my first go.
0:06:52 > 0:06:57- I do want to make, hopefully, at least 10,000, maybe.- OK.
0:06:57 > 0:07:01So, you know, if I can keep things relatively cheap,
0:07:01 > 0:07:05I do think there's a potential to make, hopefully, around ten.
0:07:05 > 0:07:06With his own building skills,
0:07:06 > 0:07:09and the help of his plasterer brother,
0:07:09 > 0:07:13he's hoping to save money and get this project done in two months.
0:07:13 > 0:07:16What are you going to do to really turn this place around?
0:07:16 > 0:07:20So really, I think, it's just make a bit of a selling point of this area.
0:07:20 > 0:07:24Remove this wall, make a nice, sort of, kitchen-diner.
0:07:24 > 0:07:27Erm, you know, the rest of the house, it'll be a case of neatening it up.
0:07:27 > 0:07:29Magnolia walls, you know, blank carpets...
0:07:29 > 0:07:32Nice blank canvas for someone to put their stamp on it, really.
0:07:32 > 0:07:34What are you worried about with this project?
0:07:34 > 0:07:38A lot of it's going to be new to me, but it's nice to get your hands dirty
0:07:38 > 0:07:39and then have a look at the end result,
0:07:39 > 0:07:42so I think I'm really looking forward to just, sort of,
0:07:42 > 0:07:43sitting back at the end of it
0:07:43 > 0:07:47and, you know, just, being happy with what, you know, I might achieve.
0:07:47 > 0:07:48Now, I know you are going to be busy,
0:07:48 > 0:07:50cos I've met little Charlie today,
0:07:50 > 0:07:53- and I know your fiancee has gone back part-time to work.- Yeah.
0:07:53 > 0:07:54How are you going to fit it all in,
0:07:54 > 0:07:57and what do you think Charlie's going to make of all this?
0:07:57 > 0:07:59Well, he's going to have to see a little bit less of me,
0:07:59 > 0:08:04maybe on Sundays especially, but no, I'm going to be doing a lot
0:08:04 > 0:08:06and I've also got my cricket on a Saturday to think about,
0:08:06 > 0:08:08so it's going to definitely be a seven-day week...
0:08:08 > 0:08:10well, for the next couple of months, at least.
0:08:10 > 0:08:13- Tom, it's been lovely meeting you. - And you.- Good luck,
0:08:13 > 0:08:16- and I can't wait to see what you do here.- Thanks.- Well done.- Cheers.
0:08:17 > 0:08:21Tom has a great property here, but it's a classic rental,
0:08:21 > 0:08:25and I'm worried, well, instant profit might be hard to find.
0:08:25 > 0:08:27See what he decides later on in the programme.
0:08:40 > 0:08:43Carlisle Castle, this imposing medieval building,
0:08:43 > 0:08:45is set in the border town of Carlisle,
0:08:45 > 0:08:49and has seen much strife among the peoples of either side.
0:08:50 > 0:08:54Personally, I don't think there'll ever be a war
0:08:54 > 0:08:57between England and Scotland again.
0:08:57 > 0:08:59Mind you, you never know, and if things did kick off,
0:08:59 > 0:09:01they'd probably start here in Carlisle,
0:09:01 > 0:09:05a Roman garrison town built to defend Hadrian's Wall,
0:09:05 > 0:09:11until this castle was built by King Henry I, around 900 years ago.
0:09:11 > 0:09:15Well, before battle commences, I'm going to go and seek shelter.
0:09:17 > 0:09:18Now, I don't know about you,
0:09:18 > 0:09:21but I've always quite liked the word "bijou",
0:09:21 > 0:09:22erm, unless, that is,
0:09:22 > 0:09:26it's forming part of the description of a property,
0:09:26 > 0:09:29when generally, it's just another word for small.
0:09:29 > 0:09:31Well, in this instance,
0:09:31 > 0:09:33small but perfectly formed is what I'm here to see -
0:09:33 > 0:09:38a one-bedroom flat, at a guide price of £35,000 plus.
0:09:38 > 0:09:40It shouldn't take us too long to look around.
0:09:42 > 0:09:43Hmm.
0:09:46 > 0:09:47Looks all right.
0:09:47 > 0:09:50Living room over that way, but facing you
0:09:50 > 0:09:52when you come in through the front door is the kitchen,
0:09:52 > 0:09:53and it's quite a nice size.
0:09:53 > 0:09:56Just units down one side of the room,
0:09:56 > 0:09:58which I think works quite well. It gives you a chance to
0:09:58 > 0:10:00have a kitchen table over there.
0:10:00 > 0:10:02Yeah, it's nice. For the size of the flat, it's brilliant.
0:10:02 > 0:10:06Through this way, and a bit, sort of, a...
0:10:06 > 0:10:07jiggery-pokery going on, here.
0:10:07 > 0:10:09We've got the bathroom - oh, wait, actually,
0:10:09 > 0:10:11it's a toilet with a shower in it - back there.
0:10:11 > 0:10:14A bit of storage, there, and then through to the one bedroom.
0:10:14 > 0:10:15Yeah, it's good.
0:10:15 > 0:10:17MUSIC: C'Est Si Bon by Louis Armstrong
0:10:17 > 0:10:22# Mmm, c'est si bon Lovers say that in France... #
0:10:22 > 0:10:27C'est bon, indeed, and the bedroom isn't too petit, either.
0:10:27 > 0:10:30There are rather a lot of doors in this back area,
0:10:30 > 0:10:34and maybe there could be some streamlining, but overall,
0:10:34 > 0:10:38the rooms are all a good size, if not particularly fashionable.
0:10:38 > 0:10:41There are signs of damp here and there,
0:10:41 > 0:10:45but I don't think they're too bothersome.
0:10:45 > 0:10:48Well, it's already shaping up to be a pretty good flat for the money,
0:10:48 > 0:10:51so you're not necessarily expecting much outside space,
0:10:51 > 0:10:53but the good news is you have actually got some.
0:10:53 > 0:10:56This little courtyard area here, some plants,
0:10:56 > 0:10:59some hanging baskets, that'd really make this rather pleasant.
0:10:59 > 0:11:02And on top of that, you've also got access, or shared access,
0:11:02 > 0:11:05to this little bit of, well, scrubland at the moment.
0:11:05 > 0:11:07That could be a decent garden, as well.
0:11:07 > 0:11:12So just two added bonuses... Yeah, it's good news.
0:11:12 > 0:11:14Is there anything else that could be done
0:11:14 > 0:11:16to make this more of a dream pad?
0:11:17 > 0:11:20Well, it is a bit difficult to see how you could really
0:11:20 > 0:11:21reconfigure the space, in here.
0:11:21 > 0:11:24I mean, maybe knock down some of these walls,
0:11:24 > 0:11:26that wall there, make it a bigger kitchen
0:11:26 > 0:11:28that you just walk straight into off the road.
0:11:28 > 0:11:30I mean, you could go completely over the top
0:11:30 > 0:11:31and take this wall out,
0:11:31 > 0:11:34to give a huge great living-kitchen-dining...
0:11:34 > 0:11:36everything area, if you like.
0:11:36 > 0:11:39I mean, there's so many options, yeah...
0:11:39 > 0:11:43Alternatively, of course, you could pretty much just leave it as it is.
0:11:43 > 0:11:46Actually, it's quite cosy as it is.
0:11:47 > 0:11:48Very cosy.
0:11:48 > 0:11:50MUSIC: All I Have To Do Is Dream by The Everly Brothers
0:11:50 > 0:11:55# Dream Dream, dream, dream... #
0:11:57 > 0:11:58Too many doors.
0:11:58 > 0:12:02Ooh! Too many doors. Too many doors.
0:12:02 > 0:12:04Too many doors!
0:12:04 > 0:12:06Oh, a bit of damp, oh.
0:12:06 > 0:12:07Too many doors!
0:12:07 > 0:12:09I've got to find the way out. Too many doors!
0:12:09 > 0:12:12HE YELPS
0:12:12 > 0:12:15HE COUGHS
0:12:15 > 0:12:19Phew, it was just a dream. Phew.
0:12:20 > 0:12:22We invited a local property expert
0:12:22 > 0:12:25to cast his eye over this leasehold flat,
0:12:25 > 0:12:29guided at £35,000 plus.
0:12:29 > 0:12:30First impressions, I'm walking round,
0:12:30 > 0:12:33I think it's very nice. One-bedroom ground-floor flat.
0:12:33 > 0:12:36It all seems to be in good order, just could do with a new kitchen,
0:12:36 > 0:12:40and maybe a little bit of upgrading and decorating, really.
0:12:40 > 0:12:44And how much did he think it could be worth on the rental market?
0:12:44 > 0:12:46A property like this, if it was on the rental market,
0:12:46 > 0:12:49should achieve around £350 per calendar month.
0:12:50 > 0:12:52And on the sale side?
0:12:52 > 0:12:54Once fully renovated,
0:12:54 > 0:12:59this property should achieve around £55,000 on the open market.
0:13:02 > 0:13:07So who fancied this bijou corner flat when it went to the auctions?
0:13:07 > 0:13:11Well, I'm pretty sure it wouldn't have given anyone there nightmares.
0:13:11 > 0:13:14Let's find out who bought it when it went under the hammer.
0:13:18 > 0:13:22£35,000, last quoted guide, who's here for this?
0:13:24 > 0:13:2735? Thought not.
0:13:27 > 0:13:29At £25,000?
0:13:29 > 0:13:3225, here. At 25, I'm bid.
0:13:32 > 0:13:34At 25, in once.
0:13:34 > 0:13:3726, 27,
0:13:37 > 0:13:4028, 29.
0:13:40 > 0:13:4129, I've got. 30.
0:13:41 > 0:13:4631, 32, 33,
0:13:46 > 0:13:5134, 35, 36.
0:13:51 > 0:13:56Thinking about it. With you, sir, at £35,000.
0:13:56 > 0:13:58We're in the market, we're here to sell.
0:13:58 > 0:14:02£35,000, first time.
0:14:02 > 0:14:0435, second time.
0:14:04 > 0:14:07You're out. £35,000, then.
0:14:07 > 0:14:09Third and final time, all done, all out.
0:14:09 > 0:14:11Selling away, then, to you, sir.
0:14:11 > 0:14:13Congratulations.
0:14:13 > 0:14:17The hammer fell on the guide price of 35,000,
0:14:17 > 0:14:21a bid placed by Brian and his wife Joanne.
0:14:21 > 0:14:25Brian owns a skip company, and Joanne owns a nursery.
0:14:25 > 0:14:27It was she who I met back at the property,
0:14:27 > 0:14:31to find out more about their choice to purchase this pad.
0:14:32 > 0:14:35- Joanne, good to meet you. - Yes, nice to meet you too, Martin.
0:14:35 > 0:14:39- Congratulations.- Thank you. - Good little flat, actually.
0:14:39 > 0:14:42Yeah, lovely, it is, it's really nice.
0:14:42 > 0:14:43Tell me why you wanted to buy it.
0:14:43 > 0:14:46It's an investment purchase between myself and my husband
0:14:46 > 0:14:48and we're looking at renting the property in the future.
0:14:48 > 0:14:51Right, so what were you looking for? What was your criteria?
0:14:51 > 0:14:53Something that was easy to maintain
0:14:53 > 0:14:57and didn't need too much work done on it, needs to meet
0:14:57 > 0:15:01- a quick turn over and get the tenant in.- Right.
0:15:01 > 0:15:03Well, you certainly ticked all the boxes here, I think.
0:15:03 > 0:15:06Bit of damp here and there that you're going to sort out.
0:15:06 > 0:15:07I think the main plan is the damp
0:15:07 > 0:15:10and I think the kitchen floor actually needs to be lifted
0:15:10 > 0:15:12and the plasterwork taken off in the kitchen
0:15:12 > 0:15:17and then re-laid and replastered and decorated again.
0:15:17 > 0:15:21- And then some paint, presumably? - Yup, decorate each of the rooms.
0:15:21 > 0:15:24I think a lot of it's wallpaper that you can paint on top of,
0:15:24 > 0:15:27so we'll be looking at touching that up and freshening it up
0:15:27 > 0:15:31in the bedroom and the living room and what have you.
0:15:31 > 0:15:35- OK, what's the budget? - Mm, 2,000 to 2,500.- Oh, wow.
0:15:35 > 0:15:36Leave the bathroom as it is, then?
0:15:36 > 0:15:39Yes, I don't think we'd get a bath in there, I think we'll just stick with
0:15:39 > 0:15:42the shower that's currently there which looks to be in good condition.
0:15:42 > 0:15:43So, yeah, yeah.
0:15:45 > 0:15:48That budget does sound small but there's not a great deal
0:15:48 > 0:15:51to do here beyond the cosmetic, so long as those damp patches
0:15:51 > 0:15:55in the kitchen, especially, aren't signs of anything too sinister.
0:15:55 > 0:15:58Joanne and her husband will be bringing in experts to do
0:15:58 > 0:15:59that part of the work
0:15:59 > 0:16:02but are also planning on being very hands-on themselves
0:16:02 > 0:16:06and want to get the flat shipshape in 4 to 6 weeks for it then
0:16:06 > 0:16:09to go up for rent as a furnished let.
0:16:09 > 0:16:11So, have you looked into the pros and cons
0:16:11 > 0:16:14of furnished versus unfurnished?
0:16:14 > 0:16:16I have, I've done my homework on the internet,
0:16:16 > 0:16:18I've looked at what's already available in the city.
0:16:18 > 0:16:20What difference does it make?
0:16:20 > 0:16:25- Maybe about £20 a month.- Right. Worth the bother, then, or not?- Yeah.
0:16:25 > 0:16:28- Well, congratulations, good luck with it.- Thank you.
0:16:28 > 0:16:30- We look forward to seeing how you get on.- Thank you, Martin.
0:16:30 > 0:16:33Well, I think Joanne's got herself a good little property here
0:16:33 > 0:16:36but I'm a little bit concerned about that budget.
0:16:36 > 0:16:38£2,000, I hope that's going to be enough.
0:16:38 > 0:16:41You can find out how she gets on sorting it out later in the show.
0:16:45 > 0:16:49Now, if you want to profit from property, timing is crucial
0:16:49 > 0:16:51and it's not always easy to get it right.
0:16:51 > 0:16:55Yes, don't let time pass you by. Let's see how today's buyers got on.
0:17:00 > 0:17:03We return now to Chatham in Kent to this three-bed terrace
0:17:03 > 0:17:06in the middle of a very steep street.
0:17:08 > 0:17:13I say three bedroom but the third was off the second, so never ideal.
0:17:13 > 0:17:16This house had its ups and downs. With a downstairs loo
0:17:16 > 0:17:20and an upwards garden, I thought this could be a great rental
0:17:20 > 0:17:24but first-time developer and first-time dad Tom
0:17:24 > 0:17:26bought it at auction for 86,000
0:17:26 > 0:17:31and planned, after spending a ten-grand budget, to flip it.
0:17:31 > 0:17:33Where's your profit?
0:17:33 > 0:17:36I do think there's a potential to make hopefully around ten.
0:17:37 > 0:17:41Three months later, it's time to find out if Tom has kept to his
0:17:41 > 0:17:45plan and if he's going to squeeze any profit out of this project.
0:17:52 > 0:17:56Tom, on a friend's advice, decided to move the stairs in order
0:17:56 > 0:17:59to create an open-plan living area downstairs.
0:18:00 > 0:18:02Which also means the newly fitted kitchen seems
0:18:02 > 0:18:05more spacious than before.
0:18:17 > 0:18:20Moving the stairs also means Tom has been able to create
0:18:20 > 0:18:25a hallway upstairs, therefore making an entrance for the third bedroom.
0:18:32 > 0:18:35The two larger bedrooms have been plastered,
0:18:35 > 0:18:36painted and brightened up.
0:18:47 > 0:18:49The back garden has been tidied...
0:18:50 > 0:18:54..and the bathroom, through the kitchen, has also been polished up.
0:18:56 > 0:18:58But it's the turning of the stairs
0:18:58 > 0:19:03and the third bedroom entrance that makes the most difference here.
0:19:03 > 0:19:07OK, so, where I'm standing here was a cupboard which, obviously,
0:19:07 > 0:19:09the staircase ended at a different side,
0:19:09 > 0:19:13so what we've done is knock away these two walls,
0:19:13 > 0:19:15change the staircase around and what that's allowed us
0:19:15 > 0:19:20to do now is create separate access to the third bedroom.
0:19:20 > 0:19:23We've put this partition wall in here, which has made that bedroom
0:19:23 > 0:19:27slightly smaller but still a good-sized double and then,
0:19:27 > 0:19:31obviously, the corridor that meets the third bedroom making it
0:19:31 > 0:19:32a full three-bed house.
0:19:34 > 0:19:37So, what other work has he undertaken here?
0:19:37 > 0:19:41Kitchen changed, believe it or not it's a second-hand kitchen.
0:19:41 > 0:19:43Found a little online bargain.
0:19:43 > 0:19:45Bathroom still got work to do.
0:19:45 > 0:19:50Unfortunately the house is 95% complete, so a few little touch-ups.
0:19:50 > 0:19:54Garden, a few touch-ups, you know, couldn't really do too much with it
0:19:54 > 0:19:57but just a neaten-up out the back and,
0:19:57 > 0:19:59yeah, generally that's the job complete.
0:20:01 > 0:20:03Tom used professionals to move the stairs and to fit
0:20:03 > 0:20:06the supporting joists but, with a little help
0:20:06 > 0:20:09from his partner Emma and his cute son Charlie,
0:20:09 > 0:20:12he was able to do a lot of the work himself.
0:20:12 > 0:20:18However, because he changed his plan, so has his two-month schedule.
0:20:18 > 0:20:22It is a fraction over three months. Yeah, three months and, really,
0:20:22 > 0:20:25only a few days' work left.
0:20:25 > 0:20:28He's done a lot more than he intended.
0:20:28 > 0:20:31I'm even more worried that he won't make any profit,
0:20:31 > 0:20:32so how much has he spent?
0:20:34 > 0:20:37We spent all the money that we needed to and it's at 11,500
0:20:37 > 0:20:40so, I'm quite pleased with that.
0:20:40 > 0:20:44We probably spent about 6,000 to 7,000 with the whole staircase
0:20:44 > 0:20:47changing which has involved, you know,
0:20:47 > 0:20:50a gas fee, certifying the steels,
0:20:50 > 0:20:55- so there's a lot of cost gone into that.- Well, that's not too bad, phew!
0:20:55 > 0:21:00That means Tom's spent a total of £97,500.
0:21:00 > 0:21:03Will these radical changes be enough to make this house rocket
0:21:03 > 0:21:08through the £100,000 ceiling price the agent told us about earlier?
0:21:10 > 0:21:14Two local property experts came along to give us their opinion.
0:21:14 > 0:21:18If the property was up for rental, what could Tom charge?
0:21:18 > 0:21:23He could achieve a figure in the region of £750 per calendar month.
0:21:23 > 0:21:28I expect it to achieve around £600 to £625 per calendar month.
0:21:29 > 0:21:32And if he was to sell on, what would be the valuation?
0:21:32 > 0:21:37I would expect it to achieve within the region of £100,000 to £110,000.
0:21:37 > 0:21:43I would recommend the price from £115,000 to £125,000.
0:21:43 > 0:21:46With the work we've done and the advice I've been given,
0:21:46 > 0:21:50I think the higher one... Realistic to start at about 121, 125,
0:21:50 > 0:21:55but I think 115's the goal here, so if we can get 115 I'll be very happy.
0:21:55 > 0:21:58It's good that Tom is being realistic,
0:21:58 > 0:22:02it means he's much more likely to achieve that quick sale he wants,
0:22:02 > 0:22:07and 115,000 would give him a profit of 17,500,
0:22:07 > 0:22:09minus taxes and fees.
0:22:09 > 0:22:14So the gamble of spending more time and money has paid off.
0:22:14 > 0:22:18Now, are Tom and baby Charlie game for another project?
0:22:18 > 0:22:22Erm, yeah, the goal is to sell this and get straight on to the next one,
0:22:22 > 0:22:24so can't wait.
0:22:24 > 0:22:26BABY GURGLES
0:22:30 > 0:22:33We're back in Carlisle, and another first-time investment.
0:22:33 > 0:22:36Joanne was also hoping to spend very little renovating
0:22:36 > 0:22:42the one-bedroom flat she'd bought with husband Brian for £35,000.
0:22:42 > 0:22:44There wasn't much work to be done
0:22:44 > 0:22:48but to rent out furnished or not furnished, that was the question.
0:22:48 > 0:22:50So have you looked into the pros and cons
0:22:50 > 0:22:52of furnished versus unfurnished?
0:22:52 > 0:22:54I have, I've done my homework on the internet.
0:22:54 > 0:22:56I've looked at what's already available in the city.
0:22:56 > 0:23:02- What difference does it make?- Maybe about £20 a month.- Right.- Erm...
0:23:02 > 0:23:06- Worth the bother, then, or not? - Yeah, I think so, definitely, yeah.
0:23:06 > 0:23:09And we're now back, three months after I first met Joanne,
0:23:09 > 0:23:12to see how it all looks now.
0:23:30 > 0:23:32Much better.
0:23:32 > 0:23:37Clean, fresh, and simple is the order of the day.
0:23:37 > 0:23:41My main concern here was the damp, which was primarily in the kitchen.
0:23:43 > 0:23:44So in the kitchen,
0:23:44 > 0:23:48we've knocked off the plaster from it to about a metre and a half high,
0:23:48 > 0:23:53injected it with the damp-proof course, replastered,
0:23:53 > 0:23:57decorated throughout, and new flooring and new appliances.
0:23:57 > 0:23:59All sounds simple enough,
0:23:59 > 0:24:04but fixing the damp wasn't entirely smooth sailing.
0:24:04 > 0:24:07We'd had the decorators come in while we were away on holiday,
0:24:07 > 0:24:10and we thought, "Great, the job'll be finished when we get back."
0:24:10 > 0:24:12And then, when we came back, it looked as though
0:24:12 > 0:24:14somebody had thrown a bucket of water
0:24:14 > 0:24:15at the bedroom and the living room walls.
0:24:15 > 0:24:18So the damp...it had pushed the damp through into the other rooms,
0:24:18 > 0:24:20so we had to start all over again
0:24:20 > 0:24:25and knock off the plaster in the bedroom and the living room.
0:24:25 > 0:24:29Nightmare, and just goes to show that sometimes
0:24:29 > 0:24:32fixing one problem can create another.
0:24:32 > 0:24:35In this case, however, it did mean the living room got
0:24:35 > 0:24:39a bit more of a makeover than was originally planned.
0:24:41 > 0:24:42In the living room,
0:24:42 > 0:24:45we've knocked off the plaster to a metre and a half high,
0:24:45 > 0:24:49we've injected the damp-proof course right round,
0:24:49 > 0:24:52erm, replastered, redecorated,
0:24:52 > 0:24:55we've put in a new flooring, and also the new fire.
0:24:55 > 0:24:56That used to be an old gas fire
0:24:56 > 0:24:59and we've replaced it with the electric fire.
0:25:00 > 0:25:02The room has also been furnished,
0:25:02 > 0:25:05and although I wasn't convinced that furnishing the property would be
0:25:05 > 0:25:11worth it, there's no doubt Joanne has a lovely eye for interior decor.
0:25:11 > 0:25:14She and her husband did a lot of the work themselves,
0:25:14 > 0:25:19and enlisted family to help out, including daughter Lucy,
0:25:19 > 0:25:21who's just putting the finishing touches
0:25:21 > 0:25:24on the newly-painted back wall.
0:25:24 > 0:25:27The problems with the damp-proofing meant the job has taken three months
0:25:27 > 0:25:29rather than the planned four to six weeks,
0:25:29 > 0:25:33but how did the £2,500 budget fare?
0:25:33 > 0:25:36We've come in at just over 3,000.
0:25:38 > 0:25:40With the additional problem of the damp,
0:25:40 > 0:25:43and the finished look of the place being so good,
0:25:43 > 0:25:47I think a £3,000 spend is pretty impressive,
0:25:47 > 0:25:50and added to the £35,000 purchase price at the auction,
0:25:50 > 0:25:54the total spent here has been £38,000.
0:25:54 > 0:25:56This is planned to be the first of many,
0:25:56 > 0:26:00so has Joanne enjoyed the experience?
0:26:00 > 0:26:03Yeah, definitely, I think it can become quite addictive, really,
0:26:03 > 0:26:07and we're already looking out for other properties that might,
0:26:07 > 0:26:12kind of, take our fancy and would benefit from being renovated.
0:26:12 > 0:26:16A success, then, in terms of job satisfaction, for sure.
0:26:16 > 0:26:20# Something for your mind, your body and your soul. #
0:26:20 > 0:26:22We invited two local property experts
0:26:22 > 0:26:25to cast their eyes over Joanne's handiwork.
0:26:25 > 0:26:27The total cost of the property, including all the work
0:26:27 > 0:26:31and the furnishings, was £38,000.
0:26:31 > 0:26:35What would these experts market it at sale-wise?
0:26:35 > 0:26:40I think the property will achieve in the range of £55,000-£60,000.
0:26:40 > 0:26:41If the property came on the market,
0:26:41 > 0:26:46it should be advertised in the region of £59,995.
0:26:46 > 0:26:49Well, they're both great valuations, yeah, brilliant.
0:26:50 > 0:26:55So a potential profit of £22,000 before tax and expenses.
0:26:55 > 0:26:57I'd be tempted, but not Joanne.
0:26:57 > 0:27:00She and her husband really want to rent this,
0:27:00 > 0:27:02and that's the course they're sticking to.
0:27:02 > 0:27:05So what rental prices could they demand?
0:27:07 > 0:27:10For a one-bedroom ground-floor flat in this location, I should imagine
0:27:10 > 0:27:14you would be looking between £350 and £400 per calendar month.
0:27:14 > 0:27:17I think the rental market is probably the best way forward for this
0:27:17 > 0:27:20property, in the current climate, and it should be able to achieve,
0:27:20 > 0:27:23in its condition, at £375 per calendar month.
0:27:23 > 0:27:26Great, well, we've pitched it at 380 per calendar month,
0:27:26 > 0:27:29so that's kind of in the middle, so I'm happy with that.
0:27:30 > 0:27:35That £380 per calendar month would yield a massive 12%,
0:27:35 > 0:27:38and I really think Joanne's done a top job
0:27:38 > 0:27:40on her first property venture.
0:27:40 > 0:27:43So does she have any advice for people who want to
0:27:43 > 0:27:45follow in her footsteps?
0:27:45 > 0:27:48Obviously, do your homework, look at the legal pack,
0:27:48 > 0:27:51visit the property, which I know a lot of people don't actually do,
0:27:51 > 0:27:54erm...and...just go for it.
0:27:54 > 0:27:57She took the words right out of my mouth.
0:28:00 > 0:28:03Well, that's it for now, but we'll have lots more
0:28:03 > 0:28:06great stories for you next time on Homes Under The Hammer.
0:28:06 > 0:28:09- So make sure you join us then. - Goodbye.- Goodbye.