0:00:02 > 0:00:05The auction property market is worth billions every year.
0:00:05 > 0:00:10- Don't be put off by that.- No. Auctions are accessible to everyone.
0:00:10 > 0:00:12They're a level playing field.
0:00:12 > 0:00:17All you need are finances, bags of confidence... Oh, and some know-how.
0:00:42 > 0:00:46With many thousands of lots going under the hammer each year,
0:00:46 > 0:00:48there's plenty of choice at most auctions.
0:00:48 > 0:00:53Here's what the bidders on today's show decided to buy when they put their hands up.
0:00:54 > 0:00:58'In Derby, if it's a pretty compact,
0:00:58 > 0:01:01'purpose-built historic building you're after...'
0:01:01 > 0:01:03How about this?
0:01:04 > 0:01:07'These ivy-clad cottages in Faversham, Kent,
0:01:07 > 0:01:10'make me think big!'
0:01:10 > 0:01:14You need a big skip and a big imagination.
0:01:14 > 0:01:19'And in County Durham, this two-bed flat looks extremely good.
0:01:19 > 0:01:21'Maybe too good.'
0:01:21 > 0:01:24Is there a catch?
0:01:26 > 0:01:30'All these properties have been sold and we'll find out who bought them
0:01:30 > 0:01:34'and what they paid for them when they went under the hammer.'
0:01:38 > 0:01:41'I'm in the east Midlands, visiting the suburbs
0:01:41 > 0:01:43'northwest of Derby city centre.'
0:01:43 > 0:01:48It's in the Kingway or Mackworth area of Derby that we find today's property.
0:01:48 > 0:01:51Really popular residential spot, this.
0:01:51 > 0:01:54Good local schools, facilities, the A38 quite close by
0:01:54 > 0:01:57and Derby city centre only three miles away.
0:01:57 > 0:02:00This is the property that I'm here to see.
0:02:00 > 0:02:05It's a three-bedroom semi-detached. Had a guide price of £72,000 plus.
0:02:05 > 0:02:08Looks good from the outside. Let's go explore.
0:02:08 > 0:02:11'I do love the fact the house has its own drive
0:02:11 > 0:02:13'and plenty of outside storage.
0:02:13 > 0:02:15'But will I love the inside?'
0:02:15 > 0:02:18Fairly dated double glazed door.
0:02:18 > 0:02:21Do you remember when double glazing used to be aluminium colour
0:02:21 > 0:02:24before they started painting it white?
0:02:24 > 0:02:29Maybe we have to factor in replacing windows into the renovation.
0:02:29 > 0:02:32In terms of layout, it's a fairly standard start.
0:02:32 > 0:02:36Stairs up to your bedrooms. A reasonable sized entrance foyer.
0:02:36 > 0:02:42Small kitchen, so straightaway I'm thinking money to be spent there.
0:02:42 > 0:02:45It would improve, big time, the feel of the property
0:02:45 > 0:02:49if that was either extended or at least enhanced.
0:02:49 > 0:02:52But one room that's really pleasant is this one.
0:02:52 > 0:02:54It's dual aspect - front and back.
0:02:54 > 0:02:57A living room/dining room that's been knocked into one.
0:02:57 > 0:03:01A lot of people did this in the '60s and it works.
0:03:01 > 0:03:03It gives a nice open feel to this place.
0:03:03 > 0:03:08You've got a fireplace in each side. Again, that's a classic of its era!
0:03:08 > 0:03:12It might not be to everyone's taste and possibly something to replace.
0:03:12 > 0:03:16The other thing I would think about is double doors into the garden.
0:03:16 > 0:03:20All in all, it looks to be in reasonable condition.
0:03:20 > 0:03:23I've not seen anything so far that scares me!
0:03:23 > 0:03:27# Please don't be scared... #
0:03:27 > 0:03:29'The only thing I'm scared of upstairs
0:03:29 > 0:03:31'is the amount of decoration needed.
0:03:31 > 0:03:35'But there are two good-sized bedrooms and a third smaller one,
0:03:35 > 0:03:38'although it's not much bigger than a box room.
0:03:38 > 0:03:40'At least it does have a window.
0:03:41 > 0:03:46'There's also a shower room up here which needs a brand new suite.
0:03:46 > 0:03:50'Even with careful planning, I'm not sure you'd get a bath in here,
0:03:50 > 0:03:53'which isn't great if you've got a family,
0:03:53 > 0:03:55'but there is scope for development.'
0:03:55 > 0:03:59So, at the rear of the property, very decent sized garden.
0:03:59 > 0:04:04More importantly, what I see out here is potential for an extension.
0:04:04 > 0:04:07At the moment, you've got this ropey lean-to.
0:04:07 > 0:04:11Why not do something similar to what neighbouring properties have done -
0:04:11 > 0:04:13a single-storey extension?
0:04:13 > 0:04:17The good news is, if you did that to within permitted development rules,
0:04:17 > 0:04:21as in not too big, you could do that without planning permission.
0:04:21 > 0:04:23You still need building regulations.
0:04:23 > 0:04:26It would increase the size both of the lounge and the kitchen
0:04:26 > 0:04:32and the amount of money it would cost, I think you'd get back in value added to the property.
0:04:32 > 0:04:36'Lucy and I recommend you get advice from local planning departments
0:04:36 > 0:04:39'before you start a project.
0:04:39 > 0:04:42'Councils interpret regulations slightly differently,
0:04:42 > 0:04:45'so do check it out, otherwise there could be problems later.
0:04:45 > 0:04:49'And it's always best to take heed of a warning.'
0:04:49 > 0:04:51AIR RAID WARNING
0:04:54 > 0:04:56- How about this? - CHUCKLES
0:04:56 > 0:04:59In the rear garden, an old Anderson shelter.
0:04:59 > 0:05:03It's a reminder of Derby's heavy industrial past.
0:05:03 > 0:05:06That attracted bombing raids during the Second World War.
0:05:06 > 0:05:10These shelters were given to households around the country
0:05:10 > 0:05:13to provide some sort of protection against enemy bombs.
0:05:13 > 0:05:15You don't often see them these days.
0:05:15 > 0:05:18What you'd want to do with it, I'm not sure.
0:05:18 > 0:05:21It'll probably end up somewhere to store your lawnmower.
0:05:21 > 0:05:27Would you keep it? I would. I hate getting rid of things that are historically interesting.
0:05:27 > 0:05:32# Bomb, bomb, get in your shelter Bomb, bomb, don't helter-skelter...#
0:05:32 > 0:05:34'There's something you don't find every day -
0:05:34 > 0:05:39'a bit of history in your garden, and another reason why I like this house.
0:05:39 > 0:05:43'I think it could have been a decent purchase.
0:05:47 > 0:05:51'But what does the auctioneer who sold it make of this solid semi
0:05:51 > 0:05:54'guided at £72,000 plus?'
0:05:54 > 0:05:59If there are negatives, it's the size of the kitchen we're in now.
0:05:59 > 0:06:03A lot of these properties have been extended backwards
0:06:03 > 0:06:05to enlarge the kitchen.
0:06:05 > 0:06:09If you extend it, you're going to add value and increase its appeal.
0:06:09 > 0:06:13It's going to be more user-friendly for the 21st century family needs.
0:06:13 > 0:06:18The positives are that you've got a solid mortgageable house
0:06:18 > 0:06:20that has potential for added value,
0:06:20 > 0:06:23as long as you're careful about what you do.
0:06:24 > 0:06:28'Once work has been done, how much could it resell for?'
0:06:29 > 0:06:33Once renovated, assuming that you don't extend it, you renovate what's here,
0:06:33 > 0:06:39its value is probably capped at £125,000 to £130,000.
0:06:39 > 0:06:44If you extend it, you would probably influence its value upwards
0:06:44 > 0:06:48by maybe another £15,000, but that probably would be about the ceiling.
0:06:48 > 0:06:51'What if the owner were to put it up for rent?'
0:06:51 > 0:06:58Renovated, I think it would have a rental value in the region of £500 to £525 a calendar month.
0:06:58 > 0:07:02If it was a bit larger on the ground floor, with the extension,
0:07:02 > 0:07:07you'd push that up by another £50, so maybe 550 to 575 a month.
0:07:08 > 0:07:12Well, it's a good solid house in a desirable area.
0:07:12 > 0:07:14There's things you'd want to do,
0:07:14 > 0:07:16such as the classics of the kitchen and bathroom
0:07:16 > 0:07:18and maybe building that extension.
0:07:18 > 0:07:22But get it right, this could make someone quite a bit of money.
0:07:22 > 0:07:25Let's see who that was when it went under the hammer.
0:07:29 > 0:07:3470,000? 70. Thank you. Opening bid at £70,000 on my right-hand side.
0:07:34 > 0:07:37At 70,000. 71 someone else?
0:07:37 > 0:07:4171, I've got. 71 and a half. I like your enthusiasm(!)
0:07:41 > 0:07:4572? 72. And a half?
0:07:45 > 0:07:4772 and a half. 73.
0:07:47 > 0:07:5073,500. 74.
0:07:50 > 0:07:5174,500.
0:07:51 > 0:07:5375,000.
0:07:53 > 0:07:5775,500. I'll come to you in a minute. 76.
0:07:57 > 0:08:0076,500. 77.
0:08:00 > 0:08:0377,500. 78.
0:08:03 > 0:08:0678,500. 79.
0:08:06 > 0:08:0979,500. 80,000...
0:08:09 > 0:08:12'Well, this turned out to be a hot lot.
0:08:12 > 0:08:17'We rejoin the bidding £10,000 later with the bids at 90,000.'
0:08:17 > 0:08:1990,000, fresh bidder.
0:08:19 > 0:08:2190. 500.
0:08:21 > 0:08:24500. 91.
0:08:25 > 0:08:2891,500? 91,500.
0:08:28 > 0:08:3092? 92.
0:08:30 > 0:08:3392,500? 93?
0:08:33 > 0:08:3593,500?
0:08:35 > 0:08:3893,500. 94?
0:08:38 > 0:08:4094. One more might get it. 94.
0:08:40 > 0:08:45No. 94,000, seated bid.
0:08:45 > 0:08:48All done once, twice, third chance?
0:08:49 > 0:08:52Sold at 94,000. Thank you.
0:08:52 > 0:08:54'There was a lot of interest in that property,
0:08:54 > 0:08:57'but it was father-and-son team Graham and Marcus
0:08:57 > 0:09:01'who finally snapped it up for 94,000.
0:09:03 > 0:09:06'I met up with Dad, Graham, at the property.
0:09:06 > 0:09:08'He's a self-employed builder.
0:09:08 > 0:09:12'His son Marcus is a professional footballer.'
0:09:12 > 0:09:15- # Can I kick it? - Yes, you can
0:09:15 > 0:09:18- # Yes, you can - Can I kick it...? #
0:09:18 > 0:09:22'They've already kick-started a career in property development
0:09:22 > 0:09:25'and this is their second project together.'
0:09:26 > 0:09:29Graham, great to meet you.
0:09:29 > 0:09:32Congratulations. Tell me why you wanted to buy this house.
0:09:32 > 0:09:35Just to get into the property development business
0:09:35 > 0:09:40- and hopefully make plenty of money. - That's fair enough. So, why now?
0:09:40 > 0:09:46It's a lot more to do with my son. He's a footballer and wanted something after his football career.
0:09:46 > 0:09:50He said how did I feel about setting a business up with him, a building business?
0:09:50 > 0:09:55He knew it was something I'd wanted to do, but financially not been able to do it.
0:09:55 > 0:09:59So we took the bull by the horns and went for it.
0:09:59 > 0:10:03'Being a builder is definitely going to help Graham on this project.
0:10:03 > 0:10:07'How much help will his footballing son be?'
0:10:07 > 0:10:13- How's it going to work? Is he going to be hammering nails in and demolishing walls?- Not yet.
0:10:13 > 0:10:17Maybe when his career's finished, but hopefully he's made enough money
0:10:17 > 0:10:20where I can still do it and he puts his feet up.
0:10:20 > 0:10:24- Cos he's got to look after himself. He can't go falling off...- No.
0:10:24 > 0:10:27He doesn't do it at the moment. He just finances it.
0:10:27 > 0:10:30That's good. So why this house, then?
0:10:30 > 0:10:34- The first one we did was about a two-minute walk from here.- Oh!
0:10:34 > 0:10:38It was a three-bed property, like this, but it had a flat roof.
0:10:38 > 0:10:40We did that to quite a good spec.
0:10:40 > 0:10:45- We finished it, put it on the market and within four days, it sold.- Wow!
0:10:45 > 0:10:48We wanted this one because that one did so well.
0:10:48 > 0:10:51- Tell me what you're going to do to this place.- New central heating.
0:10:51 > 0:10:55Rewire. Complete replaster. Um...
0:10:55 > 0:10:58Build the extension at the rear.
0:10:58 > 0:11:02New bathroom, new kitchen. Like I say, just new everything, really.
0:11:02 > 0:11:07- Tell me about the extension. - It's a single-storey in this area,
0:11:07 > 0:11:13for the dining room, and going to make the kitchen twice the size.
0:11:13 > 0:11:16- Mm.- And, obviously, the bathroom will be twice the size.
0:11:16 > 0:11:19Not a good selling point being so small.
0:11:19 > 0:11:23'I reckon they've grasped the real issue with this house
0:11:23 > 0:11:26'and have the right strategy to make the property a winner.
0:11:26 > 0:11:29'Graham's budgeted around £20,000 for the work
0:11:29 > 0:11:33'and has based that on experience of their last development spend.
0:11:33 > 0:11:36'How long had he set aside to complete the job here?'
0:11:36 > 0:11:42Hopefully, three to four months, if I can stay on the project every day.
0:11:42 > 0:11:45Obviously, with the other side of the building firm,
0:11:45 > 0:11:50if more work comes in for other clients, I can't turn it down.
0:11:50 > 0:11:53Cos that's my living, at the end of the day.
0:11:53 > 0:11:57- Fantastic. Well, congratulations! Good luck with it.- Thank you.
0:11:57 > 0:12:00- Look forward to seeing how you get on.- Good!
0:12:00 > 0:12:03So, Graham and Marcus hoping to repeat the success
0:12:03 > 0:12:06of their last venture with this property.
0:12:06 > 0:12:10I think they're going about it in absolutely the right way.
0:12:10 > 0:12:13These are tough times when it comes to selling houses
0:12:13 > 0:12:16and people still look for a good quality bathroom and kitchen.
0:12:16 > 0:12:21How will they get on? You can find out later in the show.
0:12:25 > 0:12:29'Faversham in Kent was the ancient capital of the county
0:12:29 > 0:12:32'and a place where business appeared to be booming.'
0:12:34 > 0:12:38Faversham may seem like just another pretty historic market town,
0:12:38 > 0:12:42but from 1874 to 1919,
0:12:42 > 0:12:46this was the centre of the UK's explosive industry.
0:12:46 > 0:12:50There were once six factories here producing gunpowder.
0:12:50 > 0:12:56Let's hope the property I'm here to see isn't too much of a blast from the past.
0:12:56 > 0:12:58'Most of the factories may have gone up in smoke,
0:12:58 > 0:13:02'and the property market isn't booming as much as it was, either.
0:13:02 > 0:13:05'But with improved rail links into London,
0:13:05 > 0:13:08'Faversham is an increasingly popular place to live.
0:13:08 > 0:13:13'Today's auction lot is a quarter of a mile from the town centre.'
0:13:13 > 0:13:17I'm on this busy main road to see not one, but two properties
0:13:17 > 0:13:20which were sold as one single lot at auction.
0:13:20 > 0:13:23Here they are!
0:13:23 > 0:13:28Hm, two adjoining cottages and they look like they're in a sorry state.
0:13:28 > 0:13:32With these twin properties, it could be less a case of double the joy
0:13:32 > 0:13:35and more a case of double the trouble.
0:13:35 > 0:13:38I'm going to attempt to go inside.
0:13:38 > 0:13:41Eenie, meenie, minie, moe... I'm going in this one.
0:13:41 > 0:13:43# Double trouble, I've got
0:13:43 > 0:13:45# Double trouble, I've got
0:13:45 > 0:13:47# Double trouble
0:13:47 > 0:13:51# Twice as much as anybody else Oh, yeah! #
0:13:52 > 0:13:55'They're guided at 120,000 to 130,000.
0:13:55 > 0:13:58'These two properties in one lot have two neighbours -
0:13:58 > 0:14:02'the council depot to one side and an ambulance station to the other.
0:14:02 > 0:14:08'Judging by the exterior, this place might need some emergency care of its own.'
0:14:10 > 0:14:14Whoa! You certainly need a sense of humour with THIS property.
0:14:14 > 0:14:18Can you imagine what the cottage next door is like?
0:14:18 > 0:14:21I didn't actually expect it to be quite as bad inside.
0:14:21 > 0:14:26You've got floorboards that are lifted. Polystyrene tiles down.
0:14:26 > 0:14:28It's old. It's derelict.
0:14:28 > 0:14:31- SNIFFS - Smells of damp.
0:14:31 > 0:14:35Hm, you do need those rose-tinted glasses with this property.
0:14:35 > 0:14:39But saying that, you've got a nice house here.
0:14:39 > 0:14:41You could really work with it.
0:14:41 > 0:14:45You could spend a lot of time and energy putting it back together.
0:14:45 > 0:14:47Let's have a look at the kitchen.
0:14:47 > 0:14:51Oh, dear. Yes. You've got to think about the budget.
0:14:51 > 0:14:54You need a big skip - and a big imagination.
0:14:54 > 0:14:57# Imagination
0:14:57 > 0:15:00# Could make me love you, too
0:15:00 > 0:15:03# Imagination
0:15:03 > 0:15:06# It's all I want from you #
0:15:06 > 0:15:11'Oh, yes, this is one of those where you have to think what it could be
0:15:11 > 0:15:13'rather than what it is at present.
0:15:13 > 0:15:17'Could the downstairs bathroom go upstairs? Well, maybe.
0:15:17 > 0:15:19'The two bedrooms are a reasonable size,
0:15:19 > 0:15:24'and there's the bonus of a box room off one of the bedrooms.
0:15:24 > 0:15:29'Maybe that could be a third bedroom or even the bathroom.
0:15:29 > 0:15:34'You'll have to make the inside work because the small outside space
0:15:34 > 0:15:38'with its tiny garden and absence of any parking
0:15:38 > 0:15:41'certainly stumps any scope for growth.
0:15:41 > 0:15:47'Shame the same can't be said for the plant life on the other half of this lot.'
0:15:47 > 0:15:50The most obvious difference between these two houses
0:15:50 > 0:15:54is that one is shyly hiding under a veil of ivy.
0:15:54 > 0:15:58Many people blame ivy for causing damage to buildings,
0:15:58 > 0:16:02but recent studies suggest that if the walls and the mortar are sound,
0:16:02 > 0:16:06the clinging area of roots of ivy actually do little damage.
0:16:06 > 0:16:10Unfortunately, if the exterior walls are in bad condition,
0:16:10 > 0:16:14the roots can get into cracks and cause structural problems.
0:16:14 > 0:16:18It is easy to remove. All you have to do is pull the stems off.
0:16:18 > 0:16:20But these little root ends get left behind.
0:16:20 > 0:16:24You can scrub them off with a wire brush or a pressure washer.
0:16:24 > 0:16:27# You really got a hold on me
0:16:30 > 0:16:33# You really got a hold on me... #
0:16:33 > 0:16:37Well, I can't exactly say this lot is growing on me.
0:16:37 > 0:16:40Perhaps the inside will give me more encouragement.
0:16:40 > 0:16:44I'm trying not to laugh because I can't get in the front door!
0:16:44 > 0:16:46Hello.
0:16:46 > 0:16:48LAUGHS
0:16:49 > 0:16:51Cottage number two...
0:16:52 > 0:16:55A whole lot worse.
0:16:55 > 0:16:59'Its layout may be a mirror image of next door,
0:16:59 > 0:17:02'but it's in an even worse state, with holes in the ceiling
0:17:02 > 0:17:05'and no floorboards in some rooms.
0:17:08 > 0:17:13'So, if next door needed some imagination, this needs double.
0:17:13 > 0:17:18'For all the problems, I still think this might be a decent investment.
0:17:18 > 0:17:22'Sometimes double the trouble can be a way to double your return.
0:17:23 > 0:17:28'What does a local estate agent make of this pitiful pair?'
0:17:28 > 0:17:33What might be useful is to try and separate the bedroom upstairs
0:17:33 > 0:17:35and maybe bring the bathroom upstairs.
0:17:35 > 0:17:38Most people like a bathroom on the upper floor.
0:17:38 > 0:17:42Negative factors with this property could be the working depot next door
0:17:42 > 0:17:45and also we are on a main road.
0:17:45 > 0:17:50However, we are in walking distance to the train station in Faversham, which will serve London.
0:17:50 > 0:17:53'If someone did roll up their sleeves, hire a giant skip
0:17:53 > 0:17:57'and completely refurbish the houses from top to bottom,
0:17:57 > 0:18:01'what kind of price might they achieve on the resale market?'
0:18:01 > 0:18:08The residential valuation as a two-bedroom property with a bathroom upstairs, with the changes made,
0:18:08 > 0:18:11we'd be looking at £135,000.
0:18:11 > 0:18:16If we were to leave this as a two-bedroom with a ground floor bathroom, around £125,000.
0:18:16 > 0:18:18'And on the rental market?'
0:18:18 > 0:18:23If we're looking at this as a two-bed, the rental valuation would be £650 per month.
0:18:23 > 0:18:28As a three-bedroom house, we'd be getting the same rent because the location might bring it down.
0:18:30 > 0:18:33Property in Faversham is always in demand,
0:18:33 > 0:18:37but the two cottages aren't perhaps in the best location.
0:18:37 > 0:18:41They also need some work. There's all that ivy to remove, for a start!
0:18:41 > 0:18:45Coupled with the layouts - they're not ideal.
0:18:45 > 0:18:47You've got the bathrooms downstairs.
0:18:47 > 0:18:50So, who was ready to take on this twosome?
0:18:50 > 0:18:53Let's find out who bought them at the auction.
0:18:55 > 0:18:59Lot number three. We go to the outskirts of Faversham.
0:18:59 > 0:19:01Two cottages there.
0:19:01 > 0:19:04Renovation required. 120,000 anywhere?
0:19:04 > 0:19:08120 I have, thank you. 122. And 125.
0:19:08 > 0:19:12128? 128 I have. And 130? 130.
0:19:12 > 0:19:15132? And 32. 135.
0:19:15 > 0:19:17138? 138.
0:19:17 > 0:19:20And 140? 140. 142?
0:19:20 > 0:19:23142. And 144? 144.
0:19:23 > 0:19:26146? And six I have.
0:19:26 > 0:19:29148? 48 is bid. And 150?
0:19:29 > 0:19:31150. 152?
0:19:31 > 0:19:33152. 155?
0:19:34 > 0:19:36155. 158?
0:19:36 > 0:19:40At £158,000. Take 1,000 if it helps.
0:19:40 > 0:19:42159.
0:19:42 > 0:19:45160. 161?
0:19:45 > 0:19:48Well, for the first time, then, at £160,000.
0:19:48 > 0:19:50You're out, right. Out at the back.
0:19:50 > 0:19:53For the second time at £160,000.
0:19:53 > 0:19:57Third and final time at £160,000. Are you all done?
0:19:57 > 0:20:00Gentleman's bid here. Sold at 160.
0:20:01 > 0:20:09'So, for £160,000, the successful bid for the pair of dilapidated semis in Faversham came from Ben.
0:20:12 > 0:20:16'He's in the army and has bought it with his brother, Dan,
0:20:16 > 0:20:19'as a part-time renovation project.
0:20:19 > 0:20:24'The cottages are properties eight and nine in the partnership's growing portfolio.
0:20:24 > 0:20:29'I met Ben along with his brother, Dan, at their latest purchase.'
0:20:30 > 0:20:33- Congratulations.- Thanks. - You brave buyers, you!
0:20:33 > 0:20:38What was it about the cottages that drew you to them and made you want to buy them?
0:20:38 > 0:20:42Architecturally, they look good. They're nice buildings.
0:20:42 > 0:20:45- Primarily, it was the price. - Yeah, the price.
0:20:45 > 0:20:49Did you have much time, Ben, to get in and have a good look around?
0:20:49 > 0:20:53No, the council wouldn't let us in cos they condemned the properties.
0:20:53 > 0:20:56They had no access to the properties prior to the auction.
0:20:56 > 0:21:00We looked round the outside, had a look through the windows,
0:21:00 > 0:21:03assumed worst-case scenario and went from there!
0:21:03 > 0:21:08- What did you think when you came inside?- It was better than what we were expecting.
0:21:08 > 0:21:10There's not much damp.
0:21:10 > 0:21:13Apart from a few missing floorboards, it's generally OK.
0:21:13 > 0:21:16There's also the fact there's three bedrooms.
0:21:16 > 0:21:19We suspected as much from the outside,
0:21:19 > 0:21:22but it was in the catalogue as two two-bedroom places.
0:21:22 > 0:21:26- We have very low expectations, which helps.- That always helps!
0:21:26 > 0:21:29- Always think the worst and anything else is a bonus!- Absolutely.
0:21:29 > 0:21:35'It seems Ben's army background has prepared him to take on anything.
0:21:35 > 0:21:38'But with brother Dan working in online advertising,
0:21:38 > 0:21:42'they're busy people, so a major project like this will stretch them,
0:21:42 > 0:21:44'both in time and money.'
0:21:44 > 0:21:48- How have you managed to finance this, guys?- It's not been easy.
0:21:48 > 0:21:52We don't have tons of money sitting aside to pay for it.
0:21:52 > 0:21:56We had to put as much money in as we could and get a bridging loan.
0:21:56 > 0:22:00- That's...- Ugh!- Yes, quite expensive. - That's VERY expensive.
0:22:00 > 0:22:03- Can be.- Motivates you to get the place done quickly.
0:22:03 > 0:22:09As soon as we've done the places up we'll remortgage them and pay off the bridging loan as soon as we can.
0:22:09 > 0:22:15So the pressure is on, financially. You've got to get in this house, do it up and get out.
0:22:15 > 0:22:18- Where are you going to start, Ben? - We'll start on this one.
0:22:18 > 0:22:22That one's different, I suppose. The exterior's a bit worse.
0:22:22 > 0:22:28So we'll get in this one, sort it out, rent it, remortgage and then that's us, bridging loan paid off.
0:22:28 > 0:22:31- What about cottage number two? - Another three or four months.
0:22:31 > 0:22:35Our intention is to long-term rent both of them.
0:22:35 > 0:22:37The quicker we get tenants in the better.
0:22:37 > 0:22:40'So the race is on to get at least one of these
0:22:40 > 0:22:42'up and running for the rental market.
0:22:42 > 0:22:45'But there's an awful lot of work to do here.
0:22:45 > 0:22:48'Particularly tough when it's not their full-time job.
0:22:48 > 0:22:53'How will they set about tackling their terrible twins?'
0:22:53 > 0:22:58Let's start with this cottage. What are you going to do in here? Any structural work, Ben?
0:22:58 > 0:23:01The plan is, for either of them, no structural work.
0:23:01 > 0:23:04It's too expensive for what we'd get back.
0:23:04 > 0:23:08It's to leave the layout the same, no building work,
0:23:08 > 0:23:10rewire, replumb, replaster.
0:23:10 > 0:23:15Completely redecorate and leave, layout wise, as it is.
0:23:15 > 0:23:18- And the bathroom's downstairs? - We'll leave it downstairs.
0:23:18 > 0:23:21Let's talk about that cheeky extra bedroom that you've got.
0:23:21 > 0:23:24- What are you going to do with it? - We debated this one.
0:23:24 > 0:23:29We could put a corridor in but it makes the large bedroom small.
0:23:29 > 0:23:31Our thoughts were, if we were to live here,
0:23:31 > 0:23:35we'd use that smaller bedroom as an office or a nursery.
0:23:35 > 0:23:38- I think it'll work quite well. - Or a dressing room.- Yep.
0:23:38 > 0:23:41- It would be a lovely en suite. - Fantastic.
0:23:41 > 0:23:44- We need big dressing rooms, clearly. - We so do!
0:23:44 > 0:23:47- What's the budget for the work? - 10,000 to 12,000 each.
0:23:47 > 0:23:51- Each cottage?- Yeah. - And what's your time frame?
0:23:51 > 0:23:56Maybe two months, probably more like two and a half to three months.
0:23:56 > 0:23:58We'll be doing most of the work ourselves.
0:23:58 > 0:24:02Just getting a few people in to do a bit of plumbing, bit of electrics.
0:24:02 > 0:24:05We've done similar things like this before,
0:24:05 > 0:24:08so we have a fairly good plan on how long it will take.
0:24:08 > 0:24:10It's a really exciting project.
0:24:10 > 0:24:14- I can't wait to see what it's going to look like.- Thanks very much.
0:24:14 > 0:24:18Lovely to meet you both. Dan, Ben, thank you.
0:24:19 > 0:24:22Wow! They plan to do a lot of the renovation themselves.
0:24:22 > 0:24:26That means juggling full-time jobs with working on site.
0:24:26 > 0:24:30Will they really be able to get these sister semis sorted?
0:24:30 > 0:24:35I wonder. You can find out how the boys get on later on in the show.
0:24:36 > 0:24:39'Coming up, in County Durham,
0:24:39 > 0:24:43'there's a flat which appears to be all tickety-boo.'
0:24:44 > 0:24:46It's looking great, so far.
0:24:48 > 0:24:52'Back in Faversham, Kent, these brothers know their roles.'
0:24:52 > 0:24:56- I'll smash some stuff down and he'll...- Put it back afterwards.
0:24:58 > 0:25:03'First, we return to Derby to see if Graham and Marcus have scored with this semi.'
0:25:03 > 0:25:06It's a lot better. More room.
0:25:09 > 0:25:12'Back to Derby now, where we saw this three-bedroomed house
0:25:12 > 0:25:16'sell at auction for 94,000.
0:25:16 > 0:25:20'It was bought by professional footballer Marcus with his father, Graham, who's a builder.
0:25:20 > 0:25:26'But it didn't sound like Graham was going to get much help with the renovation.'
0:25:26 > 0:25:31- How's it going to work? Is he going to be hammering nails in and demolishing walls?- Not yet.
0:25:31 > 0:25:33Maybe when his career is finished.
0:25:33 > 0:25:38Hopefully, he's made enough money where I can still do it and he puts his feet up.
0:25:42 > 0:25:46'Five months on, while footballer Marcus has been busy on the pitch...
0:25:46 > 0:25:50'No. Not that one. ..has Dad Graham been busy in the house?
0:25:52 > 0:25:54'And the answer is yes.
0:25:54 > 0:25:58'He's gone for a modern minimalist look with a coffee coloured scheme.
0:25:58 > 0:26:01'Maybe not black coffee, but certainly a mocha.'
0:26:01 > 0:26:04MUSIC: "Black Coffee" by All Saints
0:26:17 > 0:26:19'Aside from the cosmetic changes,
0:26:19 > 0:26:23'Graham's also installed a new gas central heating system,
0:26:23 > 0:26:26'reboarded and plastered all the walls,
0:26:26 > 0:26:30'put in double glazing throughout and refloored and recarpeted.
0:26:30 > 0:26:34'If you're wondering just how he managed to create this large kitchen
0:26:34 > 0:26:38'and turned the minuscule shower room into that luxury bathroom,
0:26:38 > 0:26:41'well, here's how.'
0:26:41 > 0:26:44Basically, we decided to build the extension on the property
0:26:44 > 0:26:48to enlarge the kitchen and the bathroom, cos they were so tiny.
0:26:48 > 0:26:53To enlarge the kitchen and bathroom, it's just better selling potential.
0:26:53 > 0:26:59MUSIC: "Make It Big" by The Beach Boys
0:27:01 > 0:27:04'Whilst he was at it, he's knocked down the wall
0:27:04 > 0:27:08'between the dining room and kitchen and created a huge space.
0:27:08 > 0:27:12'If that doesn't attract buyers, I don't know what will.'
0:27:14 > 0:27:18Obviously, for a family, a tiny room is a bit crowded.
0:27:18 > 0:27:21Now, it's a lot better and more room.
0:27:21 > 0:27:24'I'm really pleased that Graham went for the extension,
0:27:24 > 0:27:28'as it's made a huge difference to the property.
0:27:28 > 0:27:32'Although there is one thing that he's got rid of that I was keen on,
0:27:32 > 0:27:34'that Anderson bomb shelter.
0:27:34 > 0:27:36'Blast!'
0:27:40 > 0:27:43I'm afraid it had to go! It was an eyesore!
0:27:43 > 0:27:46You wouldn't want it in the middle of your garden, so it went.
0:27:46 > 0:27:50'Eyesore? We'll have to disagree on that one.
0:27:50 > 0:27:52'It's all looking very high-spec,
0:27:52 > 0:27:57'so what has that done for the £20,000 budget?'
0:27:57 > 0:28:01I think we've gone over budget by probably about £6,000.
0:28:01 > 0:28:06The reason being I used the figures from the last house we did.
0:28:06 > 0:28:10Those figures didn't include the groundworks, the footings, drainage
0:28:10 > 0:28:13cos it was already there. I only built on top.
0:28:13 > 0:28:16I didn't take that into account.
0:28:16 > 0:28:22When we did it, that's what took the build over budget by about £6,000.
0:28:22 > 0:28:26Hopefully, we can recoup that further down the line.
0:28:26 > 0:28:30# Build your love on a strong foundation
0:28:30 > 0:28:33# And happiness will follow you... #
0:28:33 > 0:28:39'Going £6,000 over budget will take Graham and Marcus's total investment to 120,000.
0:28:40 > 0:28:43'What will two local property experts make of it?
0:28:43 > 0:28:47'First up, the auctioneer who sold it on the day.'
0:28:47 > 0:28:50'You come into a house that you've seen before'
0:28:50 > 0:28:53and you look at the transformation and sometimes you think,
0:28:53 > 0:28:57"Yeah, it's OK." Other times, you think, "Wow!"
0:28:57 > 0:29:02The specification of what's here now would appear to be good.
0:29:02 > 0:29:06I don't think it's a cheap job. On the other hand, not ultra-expensive.
0:29:06 > 0:29:10But I think it's good quality and generally - decor, windows,
0:29:10 > 0:29:13heating, boiler, carpets - it's all good.
0:29:13 > 0:29:17Overall impression of the property? The bathroom gave me the "wow".
0:29:17 > 0:29:20The kitchen gave me the "gosh". Lovely. Really nice.
0:29:20 > 0:29:23The extension's really made the property.
0:29:23 > 0:29:27It's made the kitchen great. It's added to the size of the lounge.
0:29:27 > 0:29:30So you've got a really good sized kitchen and lounge.
0:29:30 > 0:29:35Then a little extra is a big bathroom with a four-piece suite.
0:29:35 > 0:29:38'So the extension's getting the thumbs-up,
0:29:38 > 0:29:40'but one thing gets a big thumbs-down!'
0:29:40 > 0:29:43I'm sorry that the air-raid shelter's gone.
0:29:43 > 0:29:46Not because I live in the past,
0:29:46 > 0:29:49but because it's one of those pieces of history
0:29:49 > 0:29:51which is becoming increasingly scarce.
0:29:51 > 0:29:55I think he could have made a feature out of it
0:29:55 > 0:29:57and kept a little bit of history.
0:29:57 > 0:30:01'And so to the figures. If Graham and Marcus were to rent this out,
0:30:01 > 0:30:04'what do the experts think they could get for it?'
0:30:04 > 0:30:10If this property was put up for rent, I would probably advertise it at £650 per calendar month.
0:30:10 > 0:30:13It would have a rental value of about £600 a calendar month.
0:30:13 > 0:30:17Both figures are very realistic for the quality of this house
0:30:17 > 0:30:19and for the area that it's in.
0:30:19 > 0:30:23'Their outlay on the work so far has been 26,000.
0:30:23 > 0:30:29'So, including the 94,000 paid at auction, that's a total of 120,000.
0:30:29 > 0:30:31'How much is it worth now?'
0:30:33 > 0:30:40I would ask £145,000 and I would achieve somewhere in the region of £140,000.
0:30:40 > 0:30:44I think you'd have an asking price of up to £150,000 on it.
0:30:44 > 0:30:49And you'd hope to achieve, I think, probably about £145,000.
0:30:49 > 0:30:53I think the first one is low.
0:30:53 > 0:30:58The reason being we did a house down the road, 100 metres from here.
0:30:58 > 0:31:01It was a flat-roof house. This one's a pitched roof.
0:31:01 > 0:31:05This is a better house, better street, and that fetched 145.
0:31:05 > 0:31:08So, in my mind, I think we'll go over 145.
0:31:08 > 0:31:12The second estimate, I think, is more realistic.
0:31:12 > 0:31:16I like the top-end figure better than 145.
0:31:16 > 0:31:22I think we'll go with the 145 and I think we'll be quite happy that we will hit that target.
0:31:22 > 0:31:26'If it did sell for the higher valuation of 145,000,
0:31:26 > 0:31:29'that would give them a profit of £25,000,
0:31:29 > 0:31:32'minus the usual taxes and expenses.
0:31:32 > 0:31:36'Graham has definitely moved this house into another league.
0:31:36 > 0:31:40'Will this father and son continue with their teamwork?'
0:31:42 > 0:31:46I think he will get his hands dirty when he's out of football.
0:31:46 > 0:31:51When he was a little boy, he'd come to work with me on a Saturday and he used to love it.
0:31:51 > 0:31:56'For the time being, Graham is happy to watch his son from the touchline,
0:31:56 > 0:31:59'as he succeeds with his football career.'
0:31:59 > 0:32:03I'm proud of him, yeah, and hopefully, what we're doing now,
0:32:03 > 0:32:07we can both sit back one day and be proud of what we have achieved.
0:32:11 > 0:32:13'Chester-le-Street in County Durham
0:32:13 > 0:32:15'is seven miles from Newcastle upon Tyne
0:32:15 > 0:32:18'and eight miles west of Sunderland.
0:32:18 > 0:32:21'Originally, the location of a Roman fort,
0:32:21 > 0:32:25'it has long been a stopping off point for weary travellers.
0:32:25 > 0:32:29'Perhaps today, I can find a tempting place to stay.'
0:32:29 > 0:32:31Just ten minutes from the town centre,
0:32:31 > 0:32:35in the quiet residential area of Hilda Park,
0:32:35 > 0:32:37is the property I'm here to see, and this is it.
0:32:37 > 0:32:41It's a two-bedroom extended ground floor flat.
0:32:41 > 0:32:46At a guide price of £44,950, looks pretty good from the outside.
0:32:48 > 0:32:54Oh! And for once, it looks like the inside isn't going to disappoint either.
0:32:54 > 0:32:58Little bit of a porch area, straight into your living room.
0:32:58 > 0:33:01Nice clean walls. Beautifully clean carpet.
0:33:01 > 0:33:04It doesn't smell damp. What a joy!
0:33:06 > 0:33:08# Don't jump for joy!
0:33:09 > 0:33:13# Yeah, man Have you had a baby boy? #
0:33:13 > 0:33:15'It might not be decorated to everyone's taste,
0:33:15 > 0:33:19'but at least the sitting room is in good nick.
0:33:19 > 0:33:23'It's positively immaculate compared to some auction lots I've seen.'
0:33:23 > 0:33:28Bathroom. Could do with a bit of updating, but perfectly serviceable.
0:33:28 > 0:33:31Likewise this, a bit dated, this glass wall.
0:33:31 > 0:33:35Also, I doubt that's safety glass, so you might want to replace that.
0:33:35 > 0:33:40It does throw a lot of light into this part, where you've got your two bedrooms.
0:33:40 > 0:33:43This is the front one. Decent size.
0:33:43 > 0:33:46Lots of built-in cupboards, if that's what you need.
0:33:46 > 0:33:49All in all, it's looking great, so far.
0:33:49 > 0:33:53'Again, there isn't much wrong with the bedrooms.
0:33:53 > 0:33:55'They're centrally heated with decent carpets
0:33:55 > 0:33:58'and both rooms are reasonable doubles.
0:33:58 > 0:34:02'Yes, you could put your own mark on the place, if you wished,
0:34:02 > 0:34:05'and the bathroom perhaps needs a more modern twist,
0:34:05 > 0:34:07'but I'm just being picky!'
0:34:08 > 0:34:12So, any horrors awaiting us in the kitchen?
0:34:12 > 0:34:14Um...
0:34:14 > 0:34:16No. It's pretty good!
0:34:16 > 0:34:20You look to the kind of detail that's been put in this place,
0:34:20 > 0:34:25things like real granite work surfaces, nice sockets.
0:34:25 > 0:34:29A little bit dated, but perfectly serviceable units.
0:34:29 > 0:34:33The plastic cladding on the ceiling and the walls
0:34:33 > 0:34:36might not be to everyone's taste, but it's clean,
0:34:36 > 0:34:38you've got the appliances.
0:34:40 > 0:34:41Is there a catch?
0:34:42 > 0:34:44No.
0:34:44 > 0:34:47MUSIC: "Nothing To Do" by The Tourists
0:34:53 > 0:34:56'Not only is there nothing to do in the kitchen,
0:34:56 > 0:35:01'it's also surprisingly big, as it's actually in an extension.
0:35:01 > 0:35:04'That's yet another plus point for this two-bed flat.
0:35:04 > 0:35:06'And as if that wasn't enough...'
0:35:06 > 0:35:10To the rear of the property, predictably,
0:35:10 > 0:35:12a really nice little garden.
0:35:12 > 0:35:15There's a shed. You might want to keep that. Maybe not.
0:35:15 > 0:35:18You've got a rockery, a little bit of grass.
0:35:18 > 0:35:22All it needs is a bit of a mow.
0:35:24 > 0:35:26You can't fault this place, can you?
0:35:26 > 0:35:28'But it doesn't end there, either,
0:35:28 > 0:35:31'as there's also a garage which comes with the flat.
0:35:31 > 0:35:34'So, with parking, a garden, two bedrooms,
0:35:34 > 0:35:38'a spic-and-span interior and good location,
0:35:38 > 0:35:41'it certainly seems this property has a lot going for it.
0:35:41 > 0:35:45'The only slight concern is how do you add value to it?
0:35:49 > 0:35:53'What does a local estate agent make of what's on offer here?'
0:35:54 > 0:35:57It's quite a nice position for the flat.
0:35:57 > 0:35:59It's tucked away, head of a cul-de-sac.
0:35:59 > 0:36:04The biggest advantage is the extension, which is very rare.
0:36:04 > 0:36:07That's improved the kitchen, which is the major selling point.
0:36:07 > 0:36:10'They're all plus points,
0:36:10 > 0:36:14'but it had a guide price of £44,950.
0:36:14 > 0:36:20'So, does it have much investment potential on the resale or rental markets?'
0:36:20 > 0:36:24In the current market, the problem is lack of first-time buyers.
0:36:24 > 0:36:28They probably should be achieving somewhere in excess of £70,000.
0:36:28 > 0:36:33Rental should be in the order of £450 to £500 per calendar month.
0:36:33 > 0:36:38'If you're after a quick resale profit, this might not be for you.
0:36:38 > 0:36:42'But as a buy-to-let, it might just be perfect.'
0:36:43 > 0:36:46There are a few things you could do to modernise this place,
0:36:46 > 0:36:50but frankly, I wouldn't bother - it's pretty good as it is.
0:36:50 > 0:36:52I think it would rent out like THAT.
0:36:52 > 0:36:56Let's see who fancied this one when it went under the hammer.
0:37:00 > 0:37:02We go to lot number 66 now.
0:37:02 > 0:37:06A two-bedroom ground floor flat, popular estate.
0:37:06 > 0:37:10Do I have 50,000 anywhere? Someone's got to start me at 50.
0:37:10 > 0:37:1350,000 bid. 52 on the front row.
0:37:13 > 0:37:1554? 54 bid.
0:37:15 > 0:37:1856 bid. 58? 58 bid.
0:37:18 > 0:37:2160 bid. 62.
0:37:21 > 0:37:27No? £62,000 is the bid. At 62,000. I'll take one if it'll help. 63?
0:37:27 > 0:37:2963 on the telephone.
0:37:29 > 0:37:32Yes? 63 on the telephone. 64?
0:37:33 > 0:37:3764 bid. I'm here at £64,000... 64 and a half.
0:37:37 > 0:37:4165? 65 bid. 65 and a half?
0:37:42 > 0:37:44No? I'm selling it once at 65.
0:37:44 > 0:37:48I'll take 250. 65,250 bid.
0:37:48 > 0:37:5265 and a half? No? 65,250.
0:37:52 > 0:37:56It's against you here in the room at 65,250. Anybody else?
0:37:56 > 0:37:58I'm selling it once at 65,250.
0:37:58 > 0:38:01For the second time at 65,250.
0:38:01 > 0:38:03Sold.
0:38:03 > 0:38:08'So, for £65,250, more than £20,000 over the guide price,
0:38:08 > 0:38:12'the happy new owner of the Chester-le-Street two-bed flat
0:38:12 > 0:38:15'is local car salesman Alan.
0:38:17 > 0:38:19'He, along with his wife Sarah, who's a nurse,
0:38:19 > 0:38:23'and their 21-month-old son Ethan, joined me back at the flat
0:38:23 > 0:38:28'to explain why the young couple decided to buy it at their very first auction.'
0:38:34 > 0:38:38Alan, Sarah, great to meet you both. Tell me why you wanted to buy it.
0:38:38 > 0:38:42Um... Sarah's gran put an offer on it about a year earlier.
0:38:42 > 0:38:45- Your gran?- Yeah. My gran. Yeah.
0:38:45 > 0:38:49Anyway, things didn't move on for her,
0:38:49 > 0:38:52and then we found out that it was going up for auction.
0:38:52 > 0:38:55- Wow! So you've got a history with the place already?- Yeah.
0:38:55 > 0:39:00We had a survey done on the property. Rather, Sarah's gran had, a year earlier.
0:39:00 > 0:39:03- So we kind of knew the problems with the property.- Right.
0:39:03 > 0:39:07So, is your gran...? What's going to happen now?
0:39:07 > 0:39:11If she can sell her property, then we would rent it or sell it to her.
0:39:11 > 0:39:13- OK.- Quite happy to do that.
0:39:13 > 0:39:16That doesn't look to me forthcoming,
0:39:16 > 0:39:23so we'll probably plan to rent it privately until she can do that.
0:39:23 > 0:39:28When your gran was looking to buy it a year ago, was the price higher or lower than you paid?
0:39:28 > 0:39:30- Substantially higher. - It was higher?
0:39:30 > 0:39:33How much was she willing to pay for it?
0:39:33 > 0:39:38She was willing to pay 20,000 more than what we paid for it.
0:39:38 > 0:39:41- Wow!- Yeah.- So a sizeable saving.
0:39:41 > 0:39:44'Alan and Sarah have benefited, for sure,
0:39:44 > 0:39:48'but it's a reminder of how risky the property business can be.
0:39:48 > 0:39:52'This lovely flat has plummeted in a very short time.
0:39:52 > 0:39:58'It goes to show that, with property, timing really is a major factor.'
0:39:58 > 0:40:01Talk me through what you are going to do with it.
0:40:01 > 0:40:05- You could presumably do nothing. - Yeah, I mean, people...
0:40:05 > 0:40:09Our parents have said, "The bathroom's fine. Why would you change it?"
0:40:09 > 0:40:11- Or the carpets are fine.- Hm!
0:40:11 > 0:40:14- But Sarah likes... - Yeah, that was a little argument!
0:40:14 > 0:40:16Sarah likes wood floor
0:40:16 > 0:40:20and I think it would be easier to maintain between tenants,
0:40:20 > 0:40:26which is something we'd thought about but I suppose it could rent as it is quite happily.
0:40:26 > 0:40:30It might be worth seeing, because you could rent it out as it is.
0:40:30 > 0:40:34I don't know if you'll get any more, in terms of what you'll achieve,
0:40:34 > 0:40:36for quite a lot of extra investment.
0:40:36 > 0:40:38If you do do work, what will you do?
0:40:38 > 0:40:44Living room, just change the flooring, give it a lick of paint.
0:40:44 > 0:40:47The bathroom, we think a white suite would look a bit nicer.
0:40:47 > 0:40:52Change the tiles. Make it a bit modern, a bit fresher.
0:40:52 > 0:40:56The electrics we think needs a bit of attention in terms of rewiring.
0:40:56 > 0:41:00Nothing too major and nothing too expensive - we hope!
0:41:00 > 0:41:02What budget have you set aside?
0:41:02 > 0:41:06I've set a budget of 5,000.
0:41:06 > 0:41:08I love the way you said that!
0:41:08 > 0:41:11But I'm hoping to come in a lot less.
0:41:11 > 0:41:13I want it to be around three, maximum.
0:41:13 > 0:41:16Alan wants it to be £500.
0:41:16 > 0:41:18- Oh, really?- Yeah. LAUGHTER
0:41:18 > 0:41:22I've got an idea, "Oh, it'll ONLY need this."
0:41:22 > 0:41:27Sarah's costed things quite a bit more accurately than me.
0:41:27 > 0:41:33Our plan is that the overall property will come in under 70,000 including fees, et cetera.
0:41:33 > 0:41:38- Who's going to do the work?- Um... It's going to be a family affair.
0:41:38 > 0:41:45We've roped in parents to both babysit and paint and things like that.
0:41:45 > 0:41:48- What's the timescale?- I think that it'll be done in about a month.
0:41:48 > 0:41:53- And then get it tenanted out?- Yeah. - Well, congratulations to you both.
0:41:53 > 0:41:56Good luck with it. I look forward to seeing how you get on.
0:41:57 > 0:42:03Sometimes, it's really hard to resist the temptation to do up a property.
0:42:03 > 0:42:07In this case, I REALLY think you should just leave well alone.
0:42:07 > 0:42:11I sincerely hope that Alan and Sarah take that viewpoint.
0:42:11 > 0:42:13In terms of return on their investment,
0:42:13 > 0:42:18I don't think they'll get that much more renting it out once it's done up than as it is now.
0:42:18 > 0:42:23You can find out what they decide to do, and if Granny moves in, later in the show.
0:42:26 > 0:42:31We wait patiently for our purchasers to do the work on their properties
0:42:31 > 0:42:34and sometimes they make a wonderful job of it.
0:42:34 > 0:42:38And sometimes, Martin, they encounter problem after problem.
0:42:38 > 0:42:41What's the story with today's properties?
0:42:45 > 0:42:49'There's no doubt that the town of Faversham in Kent
0:42:49 > 0:42:51'has some lovely old properties.
0:42:51 > 0:42:55'Unfortunately, the auction lot I saw wasn't one of them.
0:42:59 > 0:43:04'Sold as a single lot, these two cottages were built in 1905,
0:43:04 > 0:43:06'but they were far from lovely.
0:43:06 > 0:43:08'With floorboards missing and broken windows,
0:43:08 > 0:43:11'they were completely dilapidated throughout.
0:43:11 > 0:43:15'You couldn't even easily get into the left-hand property,
0:43:15 > 0:43:17'such was the state of the ivy.
0:43:19 > 0:43:23'But underneath all this neglect lay two three-bedroom cottages,
0:43:23 > 0:43:26'and despite their apparent state, brothers Dan and Ben
0:43:26 > 0:43:30'thought this two-for-one offer was too good a deal to pass up.
0:43:30 > 0:43:34'They bought the pair at auction for £160,000.'
0:43:34 > 0:43:37INAUDIBLE CONVERSATION
0:43:37 > 0:43:41Did you have much time, Ben, to have a good look around?
0:43:41 > 0:43:45No, the council wouldn't let us in cos they'd condemned the properties.
0:43:45 > 0:43:49They had no access prior, so we looked round the outside,
0:43:49 > 0:43:53looked through the windows, assumed worst-case scenario and went from there.
0:43:53 > 0:43:56What did you think when you came inside?
0:43:56 > 0:44:00It was better than what we were expecting. There's not much damp.
0:44:00 > 0:44:04Apart from a few missing floorboards, it's generally OK.
0:44:04 > 0:44:06We have very low expectations, which helps.
0:44:06 > 0:44:10'Low expectations or not, there was no getting around the fact
0:44:10 > 0:44:15'that the cottages were going to require an awful lot of work.
0:44:15 > 0:44:19'Yet, with Ben in the army and Dan working in online advertising,
0:44:19 > 0:44:21'this was to be a part-time project.
0:44:21 > 0:44:25'Armed with a total budget of 20,000 to 24,000,
0:44:25 > 0:44:28'they planned to tackle the ivy-free cottage first
0:44:28 > 0:44:32'to get it on the rental market - hopefully, in two to three months.
0:44:32 > 0:44:35'Then they'd start on the second cottage.
0:44:35 > 0:44:38'Now, three months later, we're back.
0:44:46 > 0:44:50'Well, they seem not just to have revived one of the cottages,
0:44:50 > 0:44:54'but both of them look like they're alive and kicking.
0:44:54 > 0:44:56'So, a change of plan?'
0:44:56 > 0:44:59Within a few weeks of us starting, we found out
0:44:59 > 0:45:04Ben had been called off to Germany, so we really had a deadline to meet.
0:45:04 > 0:45:08Three months after we bought the houses, both of them had to be done.
0:45:08 > 0:45:12'With Ben under orders to move to Germany, the clock was ticking
0:45:12 > 0:45:14'to get both their purchases in order.'
0:45:16 > 0:45:20So, we put in a lot of hours, a lot of late nights,
0:45:20 > 0:45:23but we got them done in the end, so we're pretty pleased.
0:45:43 > 0:45:47'They kept the layout the same, there's still a downstairs bathroom,
0:45:47 > 0:45:52'but in terms of looks and feel, it's substantially different.
0:45:53 > 0:45:57'The three-bed cottage is now centrally heated and double-glazed,
0:45:57 > 0:45:59'with new electrics and plumbing
0:45:59 > 0:46:03'and as you can see, it's completely refurbished throughout.'
0:46:03 > 0:46:07At the moment, three months in, we've completed one cottage.
0:46:07 > 0:46:11That's ready to let. There's tenants moving in in two days' time.
0:46:11 > 0:46:16The second property's a bit behind. Probably got two weeks' work left.
0:46:16 > 0:46:18That's due to be let in a couple of weeks.
0:46:32 > 0:46:35'So, there's a little more work to be done in this cottage
0:46:35 > 0:46:38'before the tenants can move in.
0:46:38 > 0:46:41'Like next door, they sympathetically renovated the cottage,
0:46:41 > 0:46:45'retaining as many character features as they could,
0:46:45 > 0:46:47'and maximised the space they had at their disposal.
0:46:56 > 0:47:00'There was a bonus when Ben discovered the deeds entitled them
0:47:00 > 0:47:05'to parking and right of way via the ambulance station next door.
0:47:05 > 0:47:09'It was all coming together very nicely, but given the new deadline,
0:47:09 > 0:47:13'did they do it all themselves or did they call in reinforcements?'
0:47:13 > 0:47:17We did most of the work ourselves with help from our uncle Clifford
0:47:17 > 0:47:19for free, which was brilliant.
0:47:19 > 0:47:25Also, Dan's girlfriend's dad, Paul, he's done a few days here as well.
0:47:25 > 0:47:28So we got help from a number of people.
0:47:28 > 0:47:32We've also forgotten the fact we got an electrician to do the rewiring,
0:47:32 > 0:47:38- plumbers to do the central heating and plasterers to do the plastering. - Oh, yeah!
0:47:38 > 0:47:42'Despite all the professional help, there was plenty to do.
0:47:42 > 0:47:46'With such a short time frame, teamwork was going to be key.'
0:47:48 > 0:47:50Generally, we've got on quite well.
0:47:50 > 0:47:53We've never really worked this much together.
0:47:53 > 0:47:56We've managed to get through it just fine.
0:47:56 > 0:48:00Dan does a lot of the technical stuff. He's quite a craftsman.
0:48:00 > 0:48:04I'm not! I'll smash stuff down and he'll...
0:48:04 > 0:48:06Put it back afterwards!
0:48:06 > 0:48:11'I suppose they could have done a cottage each, if they hadn't got on.
0:48:11 > 0:48:15'Has doing two at once helped their proposed total budget
0:48:15 > 0:48:19'of 20,000 to 24,000 for both cottages?'
0:48:19 > 0:48:25We aimed, initially, to spend 10,000 to 12,000 doing up each property.
0:48:25 > 0:48:29I think the reality was we spent 12,500 on each.
0:48:29 > 0:48:32So, a little bit above, but not too much, really.
0:48:32 > 0:48:34We can cope with that overspend.
0:48:34 > 0:48:36'I'd say that's pretty good.
0:48:36 > 0:48:41'£25,000 to get their two cottages up to scratch.
0:48:41 > 0:48:44'With a purchase price of 160,000,
0:48:44 > 0:48:49'their total outlay, without costs and fees, will be £185,000.
0:48:49 > 0:48:53'So, will Ben and Dan's cottages pass the inspection?
0:48:53 > 0:48:56'What do two local estate agents think?'
0:48:56 > 0:48:59In a short space of time, the transformation's very good.
0:48:59 > 0:49:02They've done the right things by keeping everything very simple.
0:49:02 > 0:49:05They've done a very good refurbishment
0:49:05 > 0:49:08for the purpose of selling the property or possibly for rental.
0:49:08 > 0:49:12They've kept the character, such as the fireplaces, wooden floorboards,
0:49:12 > 0:49:16which potential buyers like to see in this age of property.
0:49:16 > 0:49:18I like the two reception rooms.
0:49:18 > 0:49:21The bay window is very attractive, and the fireplaces,
0:49:21 > 0:49:23which are a feature in both reception rooms.
0:49:25 > 0:49:27'The brothers have already got tenants lined up,
0:49:27 > 0:49:30'but if they put them up for sale,
0:49:30 > 0:49:34'would they see any profit on their £185,000 investment?'
0:49:36 > 0:49:40Each house, in the current market, I would expect to achieve £145,000.
0:49:40 > 0:49:46Should these properties be brought to the market, the resale figure for each property would be £145,000.
0:49:46 > 0:49:48That's not bad.
0:49:48 > 0:49:52It's roughly what we expected. Maybe a bit higher but, yeah, pleased with that.
0:49:52 > 0:49:57'That could be a healthy pre-tax profit of 105,000.
0:49:57 > 0:49:59'Not bad for three months' work.
0:49:59 > 0:50:04'So how would they fare on the rental market?'
0:50:04 > 0:50:08In the current market, these would rent for £675 per calendar month.
0:50:08 > 0:50:14If these properties were offered for rent, they would rent for between £650 and £675 per calendar month.
0:50:14 > 0:50:19We've already got tenants lined up for both houses at 675 a month.
0:50:19 > 0:50:23'£675 per calendar month for each cottage
0:50:23 > 0:50:27'would generate a very decent yield of over 8%.
0:50:27 > 0:50:31'So, it may have started off as double the trouble,
0:50:31 > 0:50:34'but looks like it'll be twice as rewarding.
0:50:35 > 0:50:42'With Ben off to Germany, is this the end of their property partnership?'
0:50:42 > 0:50:47I think we'll have a break from property investing for the next few months or possibly years.
0:50:47 > 0:50:53We have typically done it once a year, so maybe we'll continue, and certainly buying at auction.
0:50:53 > 0:50:57With Ben in Germany, I don't want to be doing all the work myself!
0:50:57 > 0:51:00- So, we'll see. - Let's just see what comes up.
0:51:04 > 0:51:08'It was in the County Durham town of Chester-le-Street
0:51:08 > 0:51:11'that we first came across a two-bed ground floor flat
0:51:11 > 0:51:15'that had, well, practically everything going for it.
0:51:15 > 0:51:19'It was in a quiet location with a garage and a garden.
0:51:19 > 0:51:22'Inside, it was in pretty decent condition
0:51:22 > 0:51:25'with the unusual addition of an extension.
0:51:25 > 0:51:29'It also had the kitchen space that would put most houses to shame.
0:51:29 > 0:51:33'Quite frankly, it could have been let out without lifting a finger.'
0:51:33 > 0:51:37MUSIC: "Nothing To Do" by The Tourists
0:51:42 > 0:51:45'But for local couple Alan and Sarah
0:51:45 > 0:51:49'it wasn't just the condition of the flat that attracted them to it.'
0:51:49 > 0:51:54- Sarah's gran put an offer on it about a year earlier.- Your gran?
0:51:54 > 0:51:56My gran, yeah.
0:51:56 > 0:51:59Anyway, things didn't move on for her.
0:51:59 > 0:52:02Then we found out that it was going up for auction.
0:52:02 > 0:52:05- Wow! So you've got a history with the place!- Yeah.
0:52:12 > 0:52:16'They paid £65,250 for it,
0:52:16 > 0:52:22'nearly £20,000 less than Sarah's grandmother was going to pay for it a year before.
0:52:22 > 0:52:25'Their only dilemma was whether to do anything to it
0:52:25 > 0:52:27'or rent it out as it was.
0:52:29 > 0:52:35'Nearly seven months later, we return to catch up on the story with Alan.
0:52:38 > 0:52:43'There are changes in the lounge, albeit fairly subtle ones.
0:52:43 > 0:52:46'There's new paintwork, carpet, curtains,
0:52:46 > 0:52:49'but perhaps more importantly, there are signs of a tenant.'
0:52:49 > 0:52:54The thing I'm most pleased with is that someone's living here now.
0:52:54 > 0:52:58We have a tenant in the property who's made it more of a home.
0:52:58 > 0:53:02'And it's that change into a home that's most noticable,
0:53:02 > 0:53:08'with Alan and Sarah deciding to leave the bedrooms and kitchen as they were.
0:53:18 > 0:53:21'But they have done some work in the bathroom,
0:53:21 > 0:53:24'giving it new flooring, a redecorated ceiling
0:53:24 > 0:53:26'and just a general makeover.'
0:53:26 > 0:53:29My wife's been involved in most of the painting and the work.
0:53:29 > 0:53:33She's better at it than I am. I've been a willing labourer.
0:53:33 > 0:53:39And I did strip the ceiling in the bathroom and paint that.
0:53:39 > 0:53:44That was my main input on this, but my wife's done most of it.
0:53:45 > 0:53:48'They've also had the boiler checked and serviced,
0:53:48 > 0:53:51'and installed smoke and carbon monoxide detectors.
0:53:51 > 0:53:54'Although it's nearly seven months since we've been here,
0:53:54 > 0:53:58'the work took a month and a half and the tenant moved in soon after.
0:53:58 > 0:54:02'They've done the sensible thing by sprucing it up where necessary,
0:54:02 > 0:54:06'without going overboard and overspending.'
0:54:06 > 0:54:12In total, with fees, came in around about £2,500 to £3,000.
0:54:13 > 0:54:17'It looks like Alan's wife, Sarah, got her wish on the budget.
0:54:17 > 0:54:20'She was determined it would be £3,000 max.
0:54:21 > 0:54:23'I was worried about Alan overspending,
0:54:23 > 0:54:26'so hope the valuation from the two local estate agents
0:54:26 > 0:54:32'will at least match their total outlay of £68,250.'
0:54:33 > 0:54:37The property's been subject to a reasonable cosmetic renovation.
0:54:37 > 0:54:39It's bright and fresh
0:54:39 > 0:54:42and ideal for the rental market.
0:54:42 > 0:54:44It hasn't needed a great deal of work.
0:54:44 > 0:54:47Of particular interest is the kitchen,
0:54:47 > 0:54:50which has got modern units and granite worktops,
0:54:50 > 0:54:52and it's been extended previously.
0:54:52 > 0:54:56The property has gas central heating fired by a combination boiler,
0:54:56 > 0:55:00which is unusual cos these were fitted with ducted air heating,
0:55:00 > 0:55:03originally, which isn't as desirable as modern boilers.
0:55:04 > 0:55:09'Obviously, the flat is tenanted, but if they were to look to sell it,
0:55:09 > 0:55:16'how would their £68,250 investment fare on the resale market?'
0:55:16 > 0:55:21Should the property come to the market, I would advise a marketing price of £80,000,
0:55:21 > 0:55:24with a possible sale value of £75,000.
0:55:24 > 0:55:28We would recommend an asking price in the region of £80,000.
0:55:28 > 0:55:33We would expect the property to achieve in the region of £75,000 to £80,000.
0:55:33 > 0:55:36It seems fair. It's kind of what we expected.
0:55:36 > 0:55:42Our intention isn't to sell it. It's a long-term investment for us.
0:55:42 > 0:55:48'So, a potential £6,000 to £11,750 pre-tax profit if they sold.
0:55:48 > 0:55:51'What about the all-important rental figures?'
0:55:51 > 0:55:54The rental market is very buoyant in the area.
0:55:54 > 0:55:59I would advise an initial rental value of £475 per calendar month.
0:55:59 > 0:56:05We would expect the rental value for the property to be in the region of £475 per calendar month.
0:56:05 > 0:56:07That seems fair.
0:56:07 > 0:56:12We're obtaining a little less than that, but within the ranges that we looked at.
0:56:12 > 0:56:17'Any rental around the £475 per calendar month mark
0:56:17 > 0:56:19'will see an annual yield above 7%.
0:56:21 > 0:56:25'With a tenant in place, the flat's already earning them an income.
0:56:25 > 0:56:32'Has this first tentative dabble in the property market been enough to encourage them to do more?'
0:56:32 > 0:56:37We're already looking at other properties through auction and ones on the open market as well.
0:56:37 > 0:56:43We're quite keen to do it again if we can find another property that will do us as well as this.
0:56:44 > 0:56:50Join us next time, when we'll have more riveting stories from Britain's auction rooms.
0:56:50 > 0:56:56- Yes, make sure you join us then. It might be your passport to a small fortune.- Goodbye.- See you then.
0:57:00 > 0:57:03Subtitles by Red Bee Media Ltd
0:57:03 > 0:57:06E-mail subtitling@bbc.co.uk