0:00:02 > 0:00:08Hello. Whether you buy property as a place to live or as an investment, make sure you've bought wisely.
0:00:08 > 0:00:12It's difficult to find, but you want value for money.
0:00:12 > 0:00:16And one place you might find that is at the auction.
0:00:40 > 0:00:44From run-down flats to all sorts of gorgeous sprawling mansions,
0:00:44 > 0:00:51- there is plenty on offer in an auction room.- So what properties inspired the buyers
0:00:51 > 0:00:55to part with their cash on today's show? Let's find out.
0:00:55 > 0:00:58I'm turned on by this Fulham flat.
0:00:58 > 0:01:04It suddenly sounded really sexy AND I think round here you would get your money back, whatever that cost.
0:01:05 > 0:01:10This double property in Dover has a serious downside upstairs.
0:01:10 > 0:01:14This is probably the worst bathroom I've been in for this show.
0:01:15 > 0:01:20And in Northumberland some things are heading south in this semi.
0:01:20 > 0:01:22Not good at all.
0:01:22 > 0:01:25Good, good, good. Bad, bad, bad.
0:01:26 > 0:01:32All these properties were sold at auction. We'll find out who bought them and what they paid
0:01:32 > 0:01:35- when they went under the hammer. - Sold.
0:01:38 > 0:01:43Well, today I'm in fashionable Fulham, part of south-west London.
0:01:43 > 0:01:50It hasn't always been fashionable. In the 18th century it was known as a place for gambling and debauchery.
0:01:50 > 0:01:53It's cleaned up its act and it's now extremely desirable.
0:01:53 > 0:02:00Celebrities, the well-to-do, whoever. Lots of outdoor cafes, good transport links into town,
0:02:00 > 0:02:03a very popular place to live.
0:02:03 > 0:02:06# I am a roving gambler... #
0:02:06 > 0:02:10'Hopefully, today's lot won't turn out to be too much of a gamble.
0:02:10 > 0:02:14'Only a short stroll from the hub of Fulham with all its amenities,
0:02:14 > 0:02:19'there are plenty of lovely Victorian properties.'
0:02:19 > 0:02:24Well, this is a normally quiet street in this very fashionable area,
0:02:24 > 0:02:28but some major building work is going on at the end there.
0:02:28 > 0:02:34That is good news. The whole area is having money poured into it, but it's already extremely desirable.
0:02:34 > 0:02:40Therefore, this flat - guide price at £295,000 for a two-bed ground floor -
0:02:40 > 0:02:44around these parts it could be a bit of a snip.
0:02:44 > 0:02:49'The facade is quite grand, albeit a little faded.
0:02:49 > 0:02:54'I wonder if the interior of this ground-floor flat will be grand or grim.'
0:02:57 > 0:03:03Well, that's not particularly pleasant. Straight into a wall and a very cramped corridor there
0:03:03 > 0:03:07down that way. But turning right when you come through the door
0:03:07 > 0:03:13brings you to the front of the property and what a lovely room - big, high ceilings,
0:03:13 > 0:03:17lots of detailing still intact, this lovely bay window.
0:03:17 > 0:03:21And this has obviously been the main sort of living room.
0:03:21 > 0:03:28In fact, this is the only kitchen, if that's what you want to call it, in the property. Not ideal.
0:03:28 > 0:03:33But you can see the potential. Obviously there was an open fire at some point.
0:03:33 > 0:03:40And you've got the space. Something tells me it's going to go downhill from here on in, though.
0:03:40 > 0:03:47'And not least with the layout. That room at the front is a good size and full of potential,
0:03:47 > 0:03:51'but turn left when you come in the door
0:03:51 > 0:03:56'and there's a very narrow corridor with a bedroom on the right.
0:03:56 > 0:04:01'Round a sharp corner, there's the bathroom and another bedroom at the end.
0:04:01 > 0:04:07'It's all a bit tight, a bit tired and has made me feel rather claustrophobic.'
0:04:07 > 0:04:14# Let's go outside There's something beautiful to see
0:04:14 > 0:04:18# Go outside Where there's room to breathe... #
0:04:18 > 0:04:26Well, come out to the rear and you've got two things that are absolutely at a premium
0:04:26 > 0:04:31for London houses. One is a bit of garden space. That's really great news.
0:04:31 > 0:04:36Second, the potential for some kind of extension. If you look next door,
0:04:36 > 0:04:40you can see how people make the most of what they've got.
0:04:40 > 0:04:45This house has an extension on the top, out the back, all over.
0:04:45 > 0:04:50And that is good news. You could increase the square footage of this flat dramatically
0:04:50 > 0:04:54and get rid of that slightly unpleasant interior.
0:04:54 > 0:04:58You won't get rid of the flightpath, but everything else is great.
0:04:58 > 0:05:03'The more potential I see here, the more I like this place.
0:05:03 > 0:05:08'Unfortunately, something I can't get down to see today is the basement.
0:05:08 > 0:05:14'That could be another area worth exploring for extension possibilities.
0:05:14 > 0:05:19'So let's stay focused on what I think could be done with the back here.'
0:05:22 > 0:05:26Let's just really get a flavour of the difference that might make.
0:05:26 > 0:05:31For a start, you'd really increase the feeling of openness of the flat.
0:05:31 > 0:05:35You'd get rid of this wall and this little box.
0:05:35 > 0:05:39You'd open the whole thing out. When you walk down that corridor,
0:05:39 > 0:05:43you'd just see the kitchen and out into the garden.
0:05:43 > 0:05:50I'm talking about completely taking out this wall here, putting in a huge set of sliding doors,
0:05:50 > 0:05:54open-plan kitchen. Lots of light, air, glass.
0:05:54 > 0:06:01It suddenly sounds really sexy. And I think you'd get your money back for whatever it cost, within reason.
0:06:01 > 0:06:08Particularly if you managed to bag this pad for anywhere near the £295,000 guide price.
0:06:09 > 0:06:14We asked an estate agent who knows this area and these properties well
0:06:14 > 0:06:18to tell us what he'd recommend for this place.
0:06:18 > 0:06:22In the front of the property
0:06:22 > 0:06:28is where I'd house the two bedrooms. I'd make sure it was two doubles and a master bathroom.
0:06:28 > 0:06:32So he and I are both thinking along the same lines about the layout,
0:06:32 > 0:06:36but what about the all-important financial considerations?
0:06:36 > 0:06:42With the property extended and rearranged, how much could it sell or let for?
0:06:42 > 0:06:48With the property developed out, with an extension done, kitchen fully-developed to the rear,
0:06:48 > 0:06:55and the basement developed into a laundry room and bathroom, I think the value would be £650,000.
0:06:58 > 0:07:01You heard him right. That's over double the guide price.
0:07:01 > 0:07:05Would it also see a healthy rental return?
0:07:06 > 0:07:11I believe the rent would be £2,275 per calendar month.
0:07:11 > 0:07:15Well, it's a flat with huge amounts of potential.
0:07:15 > 0:07:22It's in the right kind of area and I think at that guide price could make somebody a lot of money.
0:07:22 > 0:07:26Let's see who took it on when it went under the hammer.
0:07:28 > 0:07:34Right, Lot 40 is a ground-floor flat. Who'd like to kick off on this?
0:07:34 > 0:07:37280 down here. 285.
0:07:37 > 0:07:39290. 300.
0:07:39 > 0:07:41305.
0:07:41 > 0:07:48Understandably, this lot was in high demand. We rejoin the bidding at £400,000.
0:07:48 > 0:07:51400. 405.
0:07:51 > 0:07:53410.
0:07:53 > 0:07:56415. Yes? 411.
0:07:56 > 0:07:57412?
0:07:57 > 0:08:00Yes, 412?
0:08:00 > 0:08:01Ungh!
0:08:01 > 0:08:06411, with you. First time. Second time.
0:08:06 > 0:08:10Third and last time. All done? Well done. 411. Sold.
0:08:10 > 0:08:18That successful £411,000 bid - a whopping £116,000 over the guide price -
0:08:18 > 0:08:21was made by Purdy.
0:08:27 > 0:08:32She's a successful businesswoman who brought her faithful companion, Max,
0:08:32 > 0:08:37to have a good sniff around while she and I had a chat.
0:08:37 > 0:08:41- Purdy, great to meet you. Congratulations.- Thank you.
0:08:41 > 0:08:45- A bit over the guide price, then. - Yes, I got a bit competitive.
0:08:45 > 0:08:51- Always bad at an auction! - I just wanted to win. I'm not a competitive person.
0:08:51 > 0:08:58- Right...- But I really wanted it. - Right. Clearly. How much did you set your budget at before you went in?
0:08:58 > 0:09:00380.
0:09:00 > 0:09:05- Ow!- It's fine. I really want to live here. It's going to be my home.
0:09:05 > 0:09:10- So it ticked all the boxes. - Yes. It was worth fighting for. - Worth £411,000?
0:09:10 > 0:09:18I've got the money. I've just sold my flat, so I was able to just do it. This is what I was looking for.
0:09:18 > 0:09:22- So do you put a price on that? - Not a pure investment decision.
0:09:22 > 0:09:27- I will have to be careful about how much I spend doing it up and it needs a lot of work.- OK.
0:09:27 > 0:09:33- So tell me about you. - I had a business, which was selling cashmere in Mongolia.
0:09:33 > 0:09:38- Cashmere?- I had a factory in Mongolia and I sold that,
0:09:38 > 0:09:42which has left me with a little pot to buy my property.
0:09:45 > 0:09:49But this place will need more than mere cash.
0:09:49 > 0:09:54It requires a lot of planning and hard graft. Purdy's going to have to steel herself
0:09:54 > 0:10:01for a lot of seriously stressful building work if it's to be a fabulous home for her and Max.
0:10:01 > 0:10:04What are your plans for this?
0:10:04 > 0:10:11Because you've got the garden area at the back, I am planning to turn that whole area into sliding doors,
0:10:11 > 0:10:14living/kitchen area to the garden.
0:10:14 > 0:10:19- This is going to be my bedroom.- OK. - Because it's a nice, quiet road, I can sleep here
0:10:19 > 0:10:25with not too much disturbance. Where we're standing now there will be an en suite bathroom.
0:10:25 > 0:10:31Then I'll move this corridor back so it's slightly wider. It's very pokey and narrow.
0:10:31 > 0:10:37And the cellar downstairs is an absolute treasure trove of extraordinary old LPs
0:10:37 > 0:10:41and Victorian furniture. I'm going to turn that into a fabulous bathroom.
0:10:41 > 0:10:46- So just a bathroom downstairs? Just that?- Yes, it'll be fabulous.
0:10:46 > 0:10:53The stairs are very steep. I'll make them much more shallow so they'll take up a lot of space.
0:10:53 > 0:11:00It'll be a storage and utility area behind the stairs, then one very indulgent place to wallow.
0:11:00 > 0:11:07- Wow!- Obviously, I want interconnectivity, wi-fi and all that going on.- In your bathroom?
0:11:07 > 0:11:09- Everything.- In the bath?
0:11:09 > 0:11:14- I wallow.- Right. And send emails? - Bubbles, wine...the lot.
0:11:14 > 0:11:17- Oh, OK.- My little batcave.
0:11:17 > 0:11:23Holy ablutions, Batman! Purdy has solved the riddle of the layout
0:11:23 > 0:11:29and it looks like she's going to give it some boom! Boom! Pow! She hopes to move in in four months.
0:11:29 > 0:11:34She has two very handy sidekicks and that's as well as Max.
0:11:34 > 0:11:39The structural engineer she has did a similar job on the adjoining property
0:11:39 > 0:11:44and her builder is a good friend she's worked with before.
0:11:45 > 0:11:51There's an extension, new kitchen/diner, underfloor heating, stairs to dig out, walls to move -
0:11:51 > 0:11:55the list goes on and sounds expensive.
0:11:56 > 0:12:01So what is the budget for that little lot?
0:12:01 > 0:12:05Yes, my builder and I don't seem able to meet on this, as ever.
0:12:05 > 0:12:10- I have said my budget is about £60,000.- OK.- And he has just fallen over laughing.
0:12:10 > 0:12:15- He should know.- We will negotiate when he gets back from his honeymoon. He'll be in a good mood!
0:12:15 > 0:12:19- Great. I can't wait. - Looking forward to it.
0:12:19 > 0:12:23- Yes, we will be back. Good luck. - Thank you! We're going to need it!
0:12:23 > 0:12:30Oh, dear. Purdy got that dreadful thing, auction fever, and got competitive at the wrong time.
0:12:30 > 0:12:37She spent more than she anticipated. However, I still think she got this for a bit of a deal.
0:12:37 > 0:12:41I love the ideas she's got. How will she get on?
0:12:41 > 0:12:47And will she negotiate the builders down to her budget? Find out later in the show.
0:12:53 > 0:12:59Think of Dover and you might immediately think of ferries, White Cliffs and a castle,
0:12:59 > 0:13:05but you might not think of a seaside location with cheap investment opportunities.
0:13:05 > 0:13:11The property I'm here to see is right in Dover itself on this busy main road through town.
0:13:11 > 0:13:16Unsurprisingly, it's not a house, although it does have a residential unit upstairs.
0:13:16 > 0:13:22In fact, it's this former cafe which looks at the moment like it's brewed its last.
0:13:22 > 0:13:26But with a guide price of just £45,000-£50,000,
0:13:26 > 0:13:30it's worth seeing if it could serve up a decent investment opportunity.
0:13:32 > 0:13:36Well, it's nice to come in off that noisy street.
0:13:36 > 0:13:41First impressions, it's in a bit of a mess and it does smell of damp.
0:13:41 > 0:13:46You can see that water has been pouring through here.
0:13:46 > 0:13:50You've got the ceiling on the floor. That needs looked at.
0:13:50 > 0:13:54But you got quite a nice big space, big window with loads of light.
0:13:54 > 0:14:00All your tables and chairs would be here and then you've got stairs up to the second level,
0:14:00 > 0:14:06which is a bit cramped. But the really odd thing is look where the counter is.
0:14:06 > 0:14:11You can't even see your customers walking in through the door.
0:14:11 > 0:14:16I would definitely think about rearranging the space. Artex everywhere.
0:14:16 > 0:14:22As it stands, I wouldn't fancy having my bacon bap and cuppa in this cafe.
0:14:22 > 0:14:27# Strange brew Killin' what's inside of you... #
0:14:27 > 0:14:33That loo needs a revamp. At least, though, the kitchen is in good order.
0:14:33 > 0:14:37With a thorough clean, it could be ready to serve up some hot grub.
0:14:37 > 0:14:41'And a good place to enjoy that would be this rear courtyard.
0:14:41 > 0:14:47'Some whitewash on the walls, a little afternoon sun and who wouldn't enjoy lunch here?
0:14:47 > 0:14:51'But how does the rest of the flat look?'
0:14:51 > 0:14:54So upstairs we have two rooms.
0:14:54 > 0:14:58It's a little oddly laid out at the moment.
0:14:58 > 0:15:03You've got a rather large room here. I'm not sure what it's used for.
0:15:03 > 0:15:09Is it a lounge? A bedroom? Little corridor here. The stairs should have opened up
0:15:09 > 0:15:15into this room and it's all just a little wobbly. The floors are a bit crooked.
0:15:15 > 0:15:17It's terribly dated, as you can see.
0:15:17 > 0:15:22You've got the boiler in here. I'm not sure what it'd be used for.
0:15:22 > 0:15:26I was rather hoping to find a kitchen or a bathroom, or both!
0:15:26 > 0:15:32So I'm hoping that up this little incey staircase, well, they'll be up there.
0:15:32 > 0:15:37I'm going to continue my exploration. It's ever so narrow.
0:15:37 > 0:15:42This is not the easiest of staircases to climb. ..Oh, no!
0:15:42 > 0:15:50What an awful bathroom! This is probably the worst bathroom I've been in on this show
0:15:50 > 0:15:54and I have seen a lot of bathrooms. You would not want a bath up here.
0:15:54 > 0:16:00Holes in the wall... It's not been painted, sloping ceilings. It just feels so cramped.
0:16:00 > 0:16:07There's a little black hole through there with no window, so there's no kitchen, there's this -
0:16:07 > 0:16:11if you'd like to call it a bathroom. It needs a clever architect,
0:16:11 > 0:16:13but terribly disappointing.
0:16:17 > 0:16:22Still, positive face on, there is a solution here -
0:16:22 > 0:16:27install skylights, take the wall out and you have a good-sized bedroom.
0:16:27 > 0:16:35And the kitchen and bathroom could go in the rear bedroom downstairs, making it less of a dog's dinner.
0:16:35 > 0:16:40On the subject of food, would buying this cafe be a half-baked idea?
0:16:42 > 0:16:49You are in the centre of Dover, but you're not actually in a prime central location for the cafe.
0:16:49 > 0:16:55The main high street is further down the road and that is where you would stand a greater chance
0:16:55 > 0:17:00of getting your lunchtime trade. Even if you do fancy a Panini and a coffee,
0:17:00 > 0:17:05where do you put your car? This road is impossible to park on. Look at these yellow lines.
0:17:05 > 0:17:10All the footfall is down there. I don't know why the last place closed,
0:17:10 > 0:17:15but you've got to ask yourself a good few questions.
0:17:15 > 0:17:19So with a guide price of £40,000-£45,000, is it possible
0:17:19 > 0:17:25that as an investment this greasy spoon is more likely to win a wooden spoon?
0:17:25 > 0:17:30We asked a local estate agent for his thoughts on it.
0:17:31 > 0:17:35First impressions - very run-down. It'll cost a lot to do up.
0:17:35 > 0:17:38The best option is commercial.
0:17:38 > 0:17:44You're probably looking at another estate agent, a solicitor's, an accountant's. Mainly offices.
0:17:44 > 0:17:49So a change of usage might be one way of getting it to pay for itself.
0:17:49 > 0:17:55You'd need the planning authority to grant permission for a change in its business classing,
0:17:55 > 0:18:02but that might make it more attractive to investors. How would the rental returns look?
0:18:02 > 0:18:07As a cafe with living space, you could probably ask for £650 a month.
0:18:07 > 0:18:11- Would changing its business class mean a higher rent?- As office space,
0:18:11 > 0:18:15you could ask about the same price, £650 per month.
0:18:15 > 0:18:22An interesting property with a variety of uses, but which one is the best way to make some money?
0:18:22 > 0:18:27It's tricky. Let's see who thought they knew the answer at auction.
0:18:28 > 0:18:32Lot number 144, excellent value.
0:18:32 > 0:18:3935 to get me going? At £35,000 it would be an absolute steal. 35. I'm on the way. At 35.
0:18:39 > 0:18:43At 35. And 38. At £39,000 sitting down.
0:18:43 > 0:18:4540 I'm looking for. 40 I've got.
0:18:45 > 0:18:4841 in a fresh place.
0:18:48 > 0:18:53At 42,000? 42 I've got. And three? 43?
0:18:53 > 0:18:56At 42, then, at the back, first time.
0:18:56 > 0:19:0042 for the second time. Third and final time.
0:19:00 > 0:19:03It's yours, sir, at 42,000.
0:19:03 > 0:19:08The final bidder, who got the lot for £42,000, was Darren.
0:19:09 > 0:19:15He lives in North Kent and runs a car hire company, while developing properties as a sideline.
0:19:15 > 0:19:18To find out if he's bitten off more than he can chew,
0:19:18 > 0:19:22I met him to hear his plans.
0:19:22 > 0:19:28- Darren, congratulations.- Thank you. - There you were, hammer went down and you got the property.- Yeah.
0:19:28 > 0:19:34I didn't set myself a limit. Just gut instinct, really. But I was happy. It was OK.
0:19:34 > 0:19:39- That's not what you're supposed to do! Come on!- I had a look at it a couple of times.- Good.
0:19:39 > 0:19:43- I'd a few figures in mind. - So you had seen it?- Yeah.
0:19:43 > 0:19:46What are your plans for it?
0:19:46 > 0:19:51I've got a couple of choices. I'm not too sure if I'd go fully residential
0:19:51 > 0:19:55or have this back as a cafe with accommodation above.
0:19:55 > 0:20:01I want to try to work out the figures, the costs involved, and see what's the best return.
0:20:01 > 0:20:07If it was back as a cafe, I just want to lease the cafe off and get an income.
0:20:07 > 0:20:12It might be that this cafe hasn't served up its last supper,
0:20:12 > 0:20:18but Darren hasn't made his mind up. Plan B is to turn the property into two flats.
0:20:18 > 0:20:25One thing he has decided is that either option would be much more successful if he shifts the stairs.
0:20:26 > 0:20:32- So you'd actually think about moving the staircase completely.- Yeah. - And put it against the back wall?
0:20:32 > 0:20:39I'll have it against the back wall so you have the option of coming into the cafe
0:20:39 > 0:20:44or going up the stairs. Maybe have a hallway or corridor,
0:20:44 > 0:20:50- one door into the cafe, one to the living accommodation. - I think that would be a good idea.
0:20:50 > 0:20:56- That would work quite well in terms of a return.- Yeah. That's what I'm doing it for, not resale.
0:20:56 > 0:20:58It's for the income.
0:20:58 > 0:21:03# For rent, for rent An empty heart
0:21:03 > 0:21:08# Just say the word And you can move right in... #
0:21:08 > 0:21:14Getting access to the upstairs flat might be an easy problem to solve,
0:21:14 > 0:21:17but attracting tenants needs work.
0:21:17 > 0:21:21- That bathroom!- It's a liability, just getting up there.- It is!
0:21:21 > 0:21:28- How are you going to change that? - I'll look at moving the bathroom and have more studio accommodation.
0:21:28 > 0:21:33I guess before they've used the cooking facilities down here and lived above,
0:21:33 > 0:21:37whereas I'd want it self-contained with its own cooking area.
0:21:37 > 0:21:42'Darren's got a £30,000 budget for the whole renovation.
0:21:42 > 0:21:47'10 grand's for the flat, which I think is very tight - it could be easily double -
0:21:47 > 0:21:50'and £20,000 to renovate the cafe.
0:21:50 > 0:21:54'He hasn't done his sums on the two flats option yet,
0:21:54 > 0:21:59'but has set a six-month timescale. I think his heart's set on the cafe option,
0:21:59 > 0:22:02'but would it be a viable business?'
0:22:02 > 0:22:06It would have customers from the other shops. There is a few.
0:22:06 > 0:22:11I've walked down Fulham High Street. There's no traditional cafes. It's coffee bars.
0:22:11 > 0:22:13People will come for nice food.
0:22:13 > 0:22:17- What do you call a traditional cafe? - Fry up-type food, really.
0:22:17 > 0:22:21- Egg and bacon baps?- Yeah.- Greasy cafe.- Stuff that's bad for you.
0:22:21 > 0:22:25- You might even get a free bap if you're lucky!- Let's hope so.
0:22:25 > 0:22:29- Darren, good luck with this. Thank you very much.- Thank you.
0:22:31 > 0:22:37So this place is destined to be a greasy spoon once again. Maybe it's fate.
0:22:37 > 0:22:43Darren has a lot of work to do before he can open the doors and get that bacon sizzling.
0:22:43 > 0:22:50I hope he'll be able to pull in the punters. Find out if it makes him a good profit later in the show.
0:22:52 > 0:22:57Coming up: I'm in Northumberland seeing past the soot in this two-bed semi.
0:22:57 > 0:23:02With a bit of time and effort, this could be a really nice place.
0:23:02 > 0:23:08In Dover, did Darren discover that twice the properties means twice the profit?
0:23:08 > 0:23:13I'm happy with that. It's a good return on the investment.
0:23:13 > 0:23:18But first, did Purdy see the funny side of transforming her Fulham flat?
0:23:18 > 0:23:22I walk in here every morning and laugh out loud.
0:23:24 > 0:23:29We're back in fabulous, fashionable Fulham now. Last time I was here, I met Purdy.
0:23:29 > 0:23:35She'd purchased this impressively-sized, two-bed, ground-floor flat
0:23:35 > 0:23:38in a Victorian terrace on a quiet road.
0:23:38 > 0:23:45She bought it as a home for herself and her dog, Max, and paid £411,000 -
0:23:45 > 0:23:49a massive £116,000 over the guide price -
0:23:49 > 0:23:52to make sure she secured it.
0:23:52 > 0:23:56- A bit over the guide price. - Yes, I got a bit competitive.
0:23:56 > 0:24:02- Always bad.- I just wanted to win. I'm not a competitive person. I just wanted to win.
0:24:02 > 0:24:09Well, was the renovation here a winner? Purdy had a long wish list to make this into her home
0:24:09 > 0:24:13and some negotiations on budget to iron out with the builder.
0:24:13 > 0:24:17We're here, 16 weeks after I first met her,
0:24:17 > 0:24:22to see if she has made this place absolutely fabulous.
0:24:24 > 0:24:26# Glamorous
0:24:26 > 0:24:29# Glamorous, glamorous
0:24:29 > 0:24:31# Glamorous
0:24:32 > 0:24:33# Glamorous
0:24:33 > 0:24:35# Glamorous, glamorous
0:24:35 > 0:24:37# Glamorous... #
0:24:40 > 0:24:47As per her original plan, Purdy has turned the front room into the main bedroom
0:24:47 > 0:24:50with an en suite where the kitchen was.
0:24:50 > 0:24:57The second bedroom is in the same spot and used to face the garden. It looks much better than it did.
0:24:57 > 0:25:02To comply with building regulations, it now has an entrance
0:25:02 > 0:25:09into a small light well as out the back now houses that huge extended living space.
0:25:11 > 0:25:18What was a boxed-in bathroom, bedroom and some dead space as the side of the property
0:25:18 > 0:25:24is now a simply stunning kitchen, dining and living area, leading out onto the garden.
0:25:29 > 0:25:35This room has a whole new wall with steel supporting the new glass doors.
0:25:35 > 0:25:41We have new flooring, underfloor heating, whole new ceiling, soundproofed,
0:25:41 > 0:25:47new electric, whole new living area. I love the way that you can see the garden
0:25:47 > 0:25:53and sit and watch television at the same time. You can actually watch television from the garden.
0:25:53 > 0:25:59Very fancy! Somewhere else Purdy wanted to make indulgent was the basement,
0:25:59 > 0:26:04which we couldn't even get down to last time. How does that look now?
0:26:04 > 0:26:11# G-L-A-M-O-R-OUS... #
0:26:12 > 0:26:19Well, she did say she wanted a big space to relax with her bubbles and bubbly.
0:26:19 > 0:26:24If you remember what it did look like, it was a coal hole. Nobody had been down there.
0:26:24 > 0:26:30I had to tank it and soundproof it so it's not as big as I thought, but it's still luxurious.
0:26:30 > 0:26:36We also managed to fit in a utility area, which I'm really pleased with so it's not up here.
0:26:36 > 0:26:43A separate downstairs utility area is a great addition and Purdy's definitely put the feel-good factor
0:26:43 > 0:26:45into this Fulham flat.
0:26:45 > 0:26:50I am so happy. I walk in here every morning and laugh out loud.
0:26:50 > 0:26:54It's exactly how I wanted it to be, if not better.
0:26:54 > 0:27:00The transformation here has been fantastic, right down to the finer details,
0:27:00 > 0:27:04from the cornicing in the bedroom to the embedded shelves in the hall.
0:27:04 > 0:27:10This is a really smart solution to opening up that claustrophobic corridor
0:27:10 > 0:27:15and was a compromise that had to be found for structural reasons.
0:27:15 > 0:27:21The renovation was a huge undertaking and Purdy's seen it at very close quarters.
0:27:21 > 0:27:26I moved in about a month after we started the build, much to my builder's horror.
0:27:26 > 0:27:30I had a bed, a mattress, the dog, a sleeping bag.
0:27:30 > 0:27:34I would go and do my teeth in the local fast food restaurant.
0:27:34 > 0:27:38The builders would arrive and roll their eyes.
0:27:38 > 0:27:42There were also raised eyebrows when it came to her budget.
0:27:42 > 0:27:47In terms of the budget, I'm pretty close. I didn't stick to it.
0:27:47 > 0:27:52A lot of extra money has gone on soundproofing, but my builder was very tolerant.
0:27:52 > 0:27:58He thought I was going to have to spend £100,000. I thought fifty, plus a bit more.
0:27:58 > 0:28:06We've managed to meet in the middle. I've come, in total, to just under £500,000
0:28:06 > 0:28:10and that includes all the furnishings and everything you can see.
0:28:10 > 0:28:17She spent around £7,000 on new furnishings, making the total for the property plus the work
0:28:17 > 0:28:20£493,000. So a little over budget.
0:28:20 > 0:28:25But how about that three-month timescale?
0:28:27 > 0:28:32We started exactly three months ago today. The first hammer went in.
0:28:32 > 0:28:35I have had to push the builders quite hard,
0:28:35 > 0:28:38but they've been amazing, I can't thank them enough.
0:28:38 > 0:28:42I think they really helped push it because I was living here.
0:28:42 > 0:28:49With the job complete, Purdy and Max can not only just live here, but begin to enjoy it.
0:28:49 > 0:28:52I really love what she's done to this place,
0:28:52 > 0:28:55but what might local estate agents reckon?
0:28:55 > 0:28:58We invited a couple along to find out.
0:28:59 > 0:29:03My first impressions are very good. The style here is excellent.
0:29:03 > 0:29:05There's a great attention to detail,
0:29:05 > 0:29:08lovely period features. I think the work is fantastic.
0:29:08 > 0:29:13The owner of this property has done an absolutely outstanding job.
0:29:13 > 0:29:17It is an absolute delight to see such a high quality finish.
0:29:17 > 0:29:21Beautiful, stunning. I'd love to live here myself.
0:29:21 > 0:29:25Purdy has purchased this place for herself and Max to live in,
0:29:25 > 0:29:27not to sell or let.
0:29:27 > 0:29:32However, both estate agents felt the property could let for £2,400 per calendar month
0:29:32 > 0:29:35which would yield just shy of 6%.
0:29:35 > 0:29:41I, for one, am curious to hear if she'd make a decent profit on her near £500,000 investment
0:29:41 > 0:29:43if she were to consider selling.
0:29:44 > 0:29:49I would put this property on the market for £599,950
0:29:49 > 0:29:54and I would expect to obtain offers very close to asking price, if not the asking price.
0:29:54 > 0:29:59If this property were to come to the market, I would expect it to sell for £595,000.
0:29:59 > 0:30:04That's great. I'm not intending to sell, so it's not as important
0:30:04 > 0:30:06as if I had done it with development in mind,
0:30:06 > 0:30:11but I'm delighted that I haven't overspent the value of the property.
0:30:11 > 0:30:16She sure didn't and could even make over £100,000 profit if she sold it.
0:30:16 > 0:30:21But not even that is going to entice Purdy to move away any time soon.
0:30:23 > 0:30:27This is the home I've always dreamt of for Max and me.
0:30:27 > 0:30:32It feels calm, I feel safe. It's cosy. There's space for me to entertain my friends.
0:30:32 > 0:30:36And I wouldn't want it any other way.
0:30:40 > 0:30:46Right on the stunning Northumberland coast, 13 miles north-east of Newcastle upon Tyne,
0:30:46 > 0:30:50lies the historic port town of Blyth.
0:30:50 > 0:30:54# I won't be your port in a storm
0:30:54 > 0:30:58# Just somebody there keeping you warm
0:30:58 > 0:31:01# I won't be your port in a storm
0:31:01 > 0:31:05# I want nothing at all... #
0:31:05 > 0:31:09Its port is a major industry here,
0:31:09 > 0:31:12handling 1.5 million tonnes of cargo every year.
0:31:12 > 0:31:17The shipment of paper and pulp from Scandinavia flows through here
0:31:17 > 0:31:21to supply the newspaper industries of Scotland and England,
0:31:21 > 0:31:24but just look at the fabulous South Beach.
0:31:24 > 0:31:27A property here has to be worth a look,
0:31:27 > 0:31:31even though on the day I visited, the weather had turned just a little...
0:31:31 > 0:31:33soggy?
0:31:33 > 0:31:36So, what was on offer at the auction?
0:31:36 > 0:31:41Well, for a very attractive guide price of £15,000-plus,
0:31:41 > 0:31:44a two-bedroomed, end of terrace house.
0:31:46 > 0:31:53Agh! Well, let's hope that the state of the property inside is better than the weather.
0:31:53 > 0:31:57Nice, big staircase leading up to the bedrooms and stuff
0:31:57 > 0:32:00and then into a really good-sized room.
0:32:00 > 0:32:05Now, decoration-wise, it needs a bit of sorting out,
0:32:05 > 0:32:10but strip the floorboards and new wallpaper and paint the ceiling and stuff
0:32:10 > 0:32:12and this would be a really lovely room.
0:32:12 > 0:32:15Look at the size of the ceilings!
0:32:15 > 0:32:19It's not a huge space, but because you've got these huge ceilings,
0:32:19 > 0:32:22it really actually feels really, really nice.
0:32:22 > 0:32:26However, that was the good bit. The bad bit is back here.
0:32:26 > 0:32:28Nice bit of under-stairs cupboard
0:32:28 > 0:32:33and then that complete disaster of a kitchen!
0:32:33 > 0:32:39When I say it's a kitchen, it's just got that one unit in there. Not good at all.
0:32:39 > 0:32:42So, good, good, good, bad, bad, bad.
0:32:42 > 0:32:47# It doesn't matter if she's good or bad, it doesn't matter if she's good or bad
0:32:47 > 0:32:52# It doesn't matter if she's good or bad, it doesn't matter if she's good or bad... #
0:32:52 > 0:32:56But some hard graft could turn the bad and good to great.
0:32:56 > 0:33:02There's obvious evidence of fire damage here, but that's not the only reason the kitchen feels so gloomy.
0:33:03 > 0:33:07Apart from that small skylight, there are no windows in here.
0:33:07 > 0:33:12It looks like there may have been one at one time, but it has since been bricked up.
0:33:12 > 0:33:17You'd really want to open that up again and let the light flood in here if you can.
0:33:17 > 0:33:22And there's another reason for the low lighting downstairs.
0:33:22 > 0:33:27Now, I am a huge fan of trees in the right place
0:33:27 > 0:33:31and that most definitely is not the right place.
0:33:31 > 0:33:35Right outside the front window is this very large sycamore.
0:33:35 > 0:33:38Not only does it block light into the lounge here,
0:33:38 > 0:33:46much more worrying is that its roots will be doing all sorts of untold damage to the foundations,
0:33:46 > 0:33:48the drainage, the sewage, who knows?
0:33:48 > 0:33:52It's not just a case of getting rid of it either
0:33:52 > 0:33:57because once you've chopped the tree down, the roots then maybe carry on growing,
0:33:57 > 0:34:03but at the very least will decay and that can cause all sorts of problems with subsidence,
0:34:03 > 0:34:08so get a specialist in to sort that out and it is something which worries me.
0:34:08 > 0:34:12# My baby, she say she don't want me to leave her
0:34:12 > 0:34:17# I say, hold on, woman, I got tree-top fever... #
0:34:17 > 0:34:20Trimming that tree would give you a tiny front yard
0:34:20 > 0:34:23because on the subject of the downsides here,
0:34:23 > 0:34:26there's no outside space to the rear,
0:34:26 > 0:34:29so not a property for garden lovers.
0:34:29 > 0:34:32Let's find out what's up upstairs.
0:34:33 > 0:34:39So, not surprisingly, the square footage on the first floor here isn't massive,
0:34:39 > 0:34:43but you can squeeze in pretty much what you need - two bedrooms,
0:34:43 > 0:34:47a very small one there and a half-decent-sized one there,
0:34:47 > 0:34:53and then a loo. It's not in the best condition, but at least it is in the right place as in upstairs.
0:34:53 > 0:34:58Money needs to be spent, but like downstairs, I think with a bit of time and effort,
0:34:58 > 0:35:00this could be a really nice place.
0:35:00 > 0:35:05So, plenty to do here, but with that £15,000-plus guide price,
0:35:05 > 0:35:09this would have been a tempting prospect at the auction.
0:35:09 > 0:35:13We asked a local property expert for her opinion.
0:35:13 > 0:35:17This property is in need of full modernisation.
0:35:17 > 0:35:20It's been severely neglected over the years.
0:35:20 > 0:35:24Any purchaser would need to consider renewing the bathroom suite, kitchen
0:35:24 > 0:35:26and full decoration throughout.
0:35:26 > 0:35:31Once you've done all the work, bearing in mind the current market and the area,
0:35:31 > 0:35:34what might you sell the house on for?
0:35:34 > 0:35:40Once this property has been fully renovated, I would recommend an asking price of £65,000.
0:35:40 > 0:35:46So, a potentially profitable property if you opted to do it up and sell it,
0:35:46 > 0:35:48but what about letting the place out?
0:35:49 > 0:35:54This should achieve around £395 a calendar month in rent.
0:35:54 > 0:35:59Well, clearly, work to be done to sort this place out, but I think it would be worth it.
0:35:59 > 0:36:04My biggest concern is the tree, but get rid of that and it's a very interesting property.
0:36:04 > 0:36:07Let's see who agreed when it went under the hammer.
0:36:09 > 0:36:14So, lot number one, can I ask for £15,000 to start me anywhere?
0:36:14 > 0:36:1810,000? I'll start at 10. Front row, £10,000 bid.
0:36:18 > 0:36:22Gentleman standing on the left-hand side at £11,000. Lady at 12,000.
0:36:22 > 0:36:2513. 14. 15.
0:36:25 > 0:36:2816. 17. 18.
0:36:28 > 0:36:3119. 20. 21.
0:36:31 > 0:36:3322. 23.
0:36:33 > 0:36:3624. 25. 26.
0:36:36 > 0:36:39New bidder at 27,000. 28.
0:36:39 > 0:36:43New bidder at 29,000 behind. 30? 30 bid. 31.
0:36:43 > 0:36:4632 standing. 33.
0:36:46 > 0:36:4734.
0:36:47 > 0:36:5035. 36? 36 bid.
0:36:50 > 0:36:54It's your last chance. It's going once at 36, second time at £36,000...
0:36:54 > 0:36:57Sold to the gentleman on the left.
0:36:57 > 0:37:04'That successful, last-second bid of £36,000 came from seasoned property developer and bidder Stephen.
0:37:09 > 0:37:13'He has a rental portfolio of 40 properties,
0:37:13 > 0:37:15'many of them bought at auction.
0:37:15 > 0:37:19'However, this time, he was doing someone else's bidding.'
0:37:19 > 0:37:22- Stephen, great to meet you. - Pleased to meet you, Martin.
0:37:22 > 0:37:25So that was a bit of a busy auction then.
0:37:25 > 0:37:29- It certainly was.- But you weren't actually buying this place for you?
0:37:29 > 0:37:32No, I was buying it for some friends of mine, Carol and Brian.
0:37:32 > 0:37:38- Why did they want to buy it? - Because it's actually attached to their house next door.
0:37:38 > 0:37:43- So they literally live... - They literally live right through that wall.
0:37:43 > 0:37:47- Why weren't they there? - They were there, hidden behind me.
0:37:47 > 0:37:52- Why were you doing the bidding on their behalf?- Because I've done many previous auctions.
0:37:52 > 0:37:55They asked for my advice and experience,
0:37:55 > 0:37:59could I go along and oversee the project? I said, "Yeah, no problem."
0:37:59 > 0:38:03So why were they so keen to buy this then?
0:38:03 > 0:38:08At first, I thought they would probably want to knock through and just add to their own property,
0:38:08 > 0:38:13but they've already got five bedrooms, they don't need any more, the kids have gone,
0:38:13 > 0:38:18and I just said you could get a landlord that could put anybody in here,
0:38:18 > 0:38:22so it would be in their interest to buy this property.
0:38:22 > 0:38:26'Brian and Carol are now in control of what happens to the house they're attached to,
0:38:26 > 0:38:29'regardless of whether they sell or let.
0:38:29 > 0:38:35'This is their first development investment, so Stephen's expertise will be invaluable.
0:38:35 > 0:38:38'Did the auction go exactly as he wanted?'
0:38:38 > 0:38:44- As a landlord for 20 years, not really.- Why?- You always want the property that little bit cheaper.
0:38:45 > 0:38:48But at the end of the day, it was Brian's money.
0:38:48 > 0:38:51I asked him how far he wanted to go.
0:38:51 > 0:38:54He gave me a figure of 35,000.
0:38:54 > 0:38:58I always wait to the death at these auctions,
0:38:58 > 0:39:02wait until the dogfight's finished, then just step in
0:39:02 > 0:39:05and that was it, 36,000, we got it.
0:39:05 > 0:39:09- So you went 1,000 over his budget? - Correct.
0:39:09 > 0:39:11- Did you ask him for his approval? - No.
0:39:11 > 0:39:14He could have punched you in the back of the chair.
0:39:14 > 0:39:18A sharp dig in the back would have stopped us from bidding any more.
0:39:18 > 0:39:24- So what do you think of the house? - A lot of work to be done. It's small, compact.
0:39:24 > 0:39:28But I'm sure it'll all come good, eventually.
0:39:28 > 0:39:32- Are you going to be involved in the renovation at all?- I certainly am.
0:39:32 > 0:39:36I'll be overseeing the project. I haven't got any trade or skill,
0:39:36 > 0:39:42but with 20 years' experience as a landlord, I've obviously got many good contacts.
0:39:42 > 0:39:45- Right.- Many good tradesmen.
0:39:45 > 0:39:49So I've already got the prices in and everything, the schedule worked out
0:39:49 > 0:39:52and I'm just chewing at the bit to get started.
0:39:52 > 0:39:56'With a budget from Brian of 12,000 to 15,000
0:39:56 > 0:40:02'and a projected timescale of three months to get the place ship-shape and ready to let,
0:40:02 > 0:40:07'I'm not surprised Stephen wants to get cracking and use his wealth of experience
0:40:07 > 0:40:10'to make this a success for his pal of over 20 years.'
0:40:13 > 0:40:16Tell me what you're going to do to the place.
0:40:16 > 0:40:20My thought would be to maintain it as a two-bedroom house.
0:40:20 > 0:40:24As you can see, the two bedrooms are pretty small,
0:40:24 > 0:40:28so Brian and his wife are quite happy for it to be a one-bedroom house,
0:40:28 > 0:40:30so the plan up till now...
0:40:30 > 0:40:35I've had an architect draw some plans for the upper floor
0:40:35 > 0:40:37to take down all the stud walls
0:40:37 > 0:40:41and then possibly make a decent-sized bathroom,
0:40:41 > 0:40:45a single shower, bath and possibly just the one bedroom.
0:40:45 > 0:40:50We're going to lose that big hallway which has taken up a lot of space,
0:40:50 > 0:40:56but the architect said to me today that it's crying out to still be a two-bedroom house,
0:40:56 > 0:40:59which... It's not my decision for that.
0:40:59 > 0:41:00Right.
0:41:00 > 0:41:02Will you argue the case?
0:41:02 > 0:41:05A little bit simply because, as a landlord,
0:41:05 > 0:41:09a two-bedroom house is better to rent out than a one-bedroom house,
0:41:09 > 0:41:13but they're going to be quite fussy who they rent out to
0:41:13 > 0:41:16and that's their prerogative, it's up to them.
0:41:16 > 0:41:20I'll just put my thoughts forward and let them decide.
0:41:20 > 0:41:24Congratulations. They're lucky to have you as a friend.
0:41:24 > 0:41:29- We look forward to seeing how you get on.- Yes. - Good luck with it.- Thank you.
0:41:29 > 0:41:32Well, how wonderful it is to have friends like Stephen
0:41:32 > 0:41:38and I do think that he has given Brian and Carol the right advice in terms of buying this place
0:41:38 > 0:41:43because if you're not in control of it, you never know what might happen to it
0:41:43 > 0:41:48and when it's so close, it's a good feeling of security to know that you are sort of in charge.
0:41:48 > 0:41:51Find out what happens later in the show.
0:41:54 > 0:41:59The clock's been ticking and the work should have started on those properties.
0:41:59 > 0:42:05Have the piles of bricks and bags of cement gone and has the paint dried on the walls? Let's find out.
0:42:08 > 0:42:12'We now return to Kent and the town of Dover where, earlier,
0:42:12 > 0:42:16'we saw this tired-looking cafe and, above it, this one-bed flat.
0:42:17 > 0:42:21'Both had seen better days. The flat was in a miserable state
0:42:21 > 0:42:24'and the cafe had closed after 70 years in business.'
0:42:24 > 0:42:30# Strange brew killin' what's inside of you... #
0:42:30 > 0:42:36'But none of that put off Darren who bought the two units for 42,000.
0:42:36 > 0:42:40'He runs a car hire company and dabbles in property as a side line,
0:42:40 > 0:42:45'but whether the cafe would be on the main course remained to be seen.'
0:42:45 > 0:42:51So here we are in the 2000s. Will you turn it back into a cafe? What are your plans?
0:42:51 > 0:42:56I've got a couple of choices. I'm not too sure whether to go fully residential with it
0:42:56 > 0:42:59or have this back as a caff with accommodation above.
0:42:59 > 0:43:03I want to try and work out the figures, the costs involved
0:43:03 > 0:43:06and see what the best thing is on a return basis.
0:43:06 > 0:43:14If Darren did keep the cafe going, he had a total budget of 30 grand to renovate it, plus the flat above.
0:43:14 > 0:43:16He had a six-month schedule for the work
0:43:16 > 0:43:22with the cafe hopefully serving its first full English breakfast in three months.
0:43:22 > 0:43:28I just hope that when it comes to turning this place around, his eyes weren't bigger than his stomach.
0:43:28 > 0:43:33Well, five and a half months later and it looks like Darren has got the cafe up and running.
0:43:35 > 0:43:40The shop front hasn't changed, but a lick of paint does make it look a bit more appetising.
0:43:40 > 0:43:42And inside...?
0:43:45 > 0:43:47What a difference!
0:43:47 > 0:43:50The staircase to the upper seating level has been moved
0:43:50 > 0:43:56and re-jigging the layout has allowed for more seating on the raised level.
0:43:58 > 0:44:00But what's really tickled my taste buds
0:44:00 > 0:44:05is the new one-storey extension which houses the kitchen.
0:44:06 > 0:44:12Now the owners can see the customers coming in and they can see the food being prepared.
0:44:14 > 0:44:20The staircase is now at the side of the restaurant with direct access to the flat above.
0:44:20 > 0:44:22That re-jig has meant big changes up here
0:44:22 > 0:44:25with the kitchen the first stop.
0:44:26 > 0:44:29Where I'm standing now, obviously, is now the kitchen.
0:44:29 > 0:44:35It looked like it had been used as a bedroom. It was just a bare room with a fireplace to one side.
0:44:35 > 0:44:39We took the chimney out and that enabled the room to be a bit bigger.
0:44:39 > 0:44:42We've created a bathroom and an open-plan kitchen now,
0:44:42 > 0:44:46built-in oven and hob, new flooring, new tiling.
0:44:46 > 0:44:50Just given it a nice, presentable area for a tenant or a purchaser.
0:44:52 > 0:44:55Off the kitchen is a new roof terrace,
0:44:55 > 0:45:00but you'll also see from here the other big alteration to the flat.
0:45:01 > 0:45:05Darren has installed dormer windows and created the room
0:45:05 > 0:45:10to transform that awful attic and its bathroom into two spacious bedrooms
0:45:10 > 0:45:13with a great view of Dover Castle.
0:45:13 > 0:45:17The bathroom is now located just off the kitchen on the floor below.
0:45:19 > 0:45:24That just leaves the living room and a straightforward refurbishment for this one.
0:45:24 > 0:45:26If only the rest was that simple!
0:45:26 > 0:45:30You couldn't see the work required until you started taking it apart.
0:45:30 > 0:45:37It's been rewired, re-plumbed, new windows, new doors, a full refurbishment from top to bottom.
0:45:37 > 0:45:43The work needed may have been comprehensive, but fortunately, there were no major problems.
0:45:43 > 0:45:49Darren project-managed the renovation and the changes made have brought the best out of the flat.
0:45:49 > 0:45:55Although that rear courtyard is gone, the new extension has improved the flow of the cafe.
0:45:55 > 0:45:58My favourite bit is the cafe side of it.
0:45:58 > 0:46:04A lot of people that have previously been in there honestly can't believe it's the same place,
0:46:04 > 0:46:09so that in itself is a compliment to me organising it and the workmen doing their work.
0:46:09 > 0:46:12But that's not the only reason he likes it.
0:46:12 > 0:46:19I can meet my friends down here and have a nice breakfast free of charge. Can't get much better than that!
0:46:19 > 0:46:22It looks like Darren's got himself a meal ticket.
0:46:22 > 0:46:25# Hey, good-lookin'
0:46:25 > 0:46:27# What you got cookin'?
0:46:27 > 0:46:32# How's about cookin' somethin' up with me-e-e? #
0:46:32 > 0:46:36Another bonus for Darren was that he discovered the flat and cafe
0:46:36 > 0:46:42are registered separately with the Land Registry, so it will be easier to sell them individually.
0:46:42 > 0:46:47For now, he's happy to let them both. While he is still looking for a tenant for the flat,
0:46:47 > 0:46:51the cafe's been leased. Having done his sums, he realised
0:46:51 > 0:46:57it was more lucrative to keep the commercial property as such, rather than turn it into a flat.
0:46:57 > 0:47:01Talking of cash, how did the £30,000 budget bear up?
0:47:01 > 0:47:07In total, for the whole building, it's £42,395,
0:47:07 > 0:47:12purely because there was a lot more work here than I noticed at the beginning.
0:47:12 > 0:47:16Putting the extra bedroom in has cost a little bit more money,
0:47:16 > 0:47:20but the rental return will be better by having two bedrooms.
0:47:20 > 0:47:24Add that spend to his purchase price of 42,000
0:47:24 > 0:47:28and Darren's total outlay here is just under £84,500.
0:47:28 > 0:47:34Time to find out if two local estate agents think this renovation
0:47:34 > 0:47:36is just their cup of tea.
0:47:36 > 0:47:39The caff looks like it's working well.
0:47:39 > 0:47:42The counter has been moved to the back of this shop.
0:47:42 > 0:47:44You can see it from the high street.
0:47:44 > 0:47:47It's a lot more presentable and open. Looks a lot better.
0:47:47 > 0:47:49I think it's a great refurbishment.
0:47:49 > 0:47:52The cafe has been very well fitted out
0:47:52 > 0:47:54and offers a superb space for trading.
0:47:54 > 0:48:00The flat has been very well improved and offers very flexible accommodation.
0:48:00 > 0:48:04I particularly like that the flat now has its own entrance
0:48:04 > 0:48:09which will really assist with being able to let the two properties separately.
0:48:09 > 0:48:13But would the rental figures make Darren happy? First, the cafe.
0:48:13 > 0:48:19I would expect the cafe to rent for £500 per calendar month.
0:48:19 > 0:48:22The cafe could rent for around £600 to £700 a month.
0:48:22 > 0:48:26I get 650 a month for the caff, so I'm happy with that, obviously.
0:48:26 > 0:48:31I feel that one of the agents has undervalued it, but the other one was very close.
0:48:31 > 0:48:38That would be an annual return of £7,800, but what could the flat achieve if let?
0:48:38 > 0:48:42I would expect this flat to rent for £450 per calendar month.
0:48:42 > 0:48:46The flat could rent for £470 to £500 a month.
0:48:46 > 0:48:50450 or above, I'm happy with, so if the agent thinks I can get nearer 5,
0:48:50 > 0:48:54it's a better income, so I'll be happy with that.
0:48:54 > 0:49:00Add that possible rental income for the flat of £6,000 per year to the cafe's income
0:49:00 > 0:49:05and that could earn Darren a whopping annual yield of around 16%.
0:49:05 > 0:49:10The estate agents reckon there's a possible re-sale value of the two properties combined
0:49:10 > 0:49:13of between £100,000 and £130,000,
0:49:13 > 0:49:19which would mean a profit of between 15,000 and 45,000, minus the usual tax and expenses.
0:49:22 > 0:49:29Yeah, I thought it would be about that, 120, 130. I'm happy with that. It's a good return on my investment.
0:49:29 > 0:49:35Darren has good reason to be happy with the result and it sounds like the local customers are too.
0:49:36 > 0:49:40When they come in and eat, it's all good feedback from the locals,
0:49:40 > 0:49:45so hopefully, they'll continue to come here and the guy will continue to rent it.
0:49:51 > 0:49:55We're back in the Northumberland port town of Blyth
0:49:55 > 0:50:01where £36,000 bagged this two-bedroom, end of terrace property.
0:50:01 > 0:50:06Stephen made the bid and was going to project-manage for his friends Brian and Carol,
0:50:06 > 0:50:10once the question over the number of bedrooms had been answered.
0:50:12 > 0:50:16Brian and his wife are happy for it to be a one-bedroom house,
0:50:16 > 0:50:21but the architect said to me today that it's crying out to still be a two-bedroom house,
0:50:21 > 0:50:25which... It's not my decision for that.
0:50:25 > 0:50:26Right.
0:50:26 > 0:50:28Will you argue the case?
0:50:28 > 0:50:31A little bit simply because, as a landlord,
0:50:31 > 0:50:35a two-bedroom house is better to rent out than a one-bedroom house.
0:50:35 > 0:50:38Once that was resolved, Stephen set to work.
0:50:38 > 0:50:41The property had been fire-damaged,
0:50:41 > 0:50:46had a huge and overpowering sycamore tree blocking the front windows
0:50:46 > 0:50:49and needed a complete overhaul from top to bottom.
0:50:49 > 0:50:53We're back to catch up with Stephen 12 weeks on.
0:51:11 > 0:51:14I'm not seeing any drawbacks down here.
0:51:14 > 0:51:18There are no longer any signs of damp or damage.
0:51:18 > 0:51:20Will upstairs follow suit?
0:51:28 > 0:51:33The gloom's been banished in the bathroom, but is it a one-bed or two?
0:51:45 > 0:51:51Despite some initial debate, they've decided to keep the two bedrooms upstairs
0:51:51 > 0:51:56and added a little extra space to each by incorporating some of what was the landing.
0:51:56 > 0:52:00And a second bedroom always comes in handy, doesn't it, Stephen?
0:52:02 > 0:52:06Well, I suppose, if you get older in life and you have a few fall-outs,
0:52:06 > 0:52:12then rather than sleep on the settee, you can always sleep in the single bed in the single room.
0:52:12 > 0:52:16Here's hoping there were no fall-outs on this job,
0:52:16 > 0:52:21particularly as Stephen has been friends with Carol and Brian for 20 years.
0:52:21 > 0:52:25It's been enjoyable because it's handy having Brian next door.
0:52:25 > 0:52:29It's their house and their money, so all I did
0:52:29 > 0:52:33was to keep asking Brian and his wife Carol their opinion
0:52:33 > 0:52:37on certain things that they wanted done or not done,
0:52:37 > 0:52:41and basically, the mistake was going into Brian's after lunch
0:52:41 > 0:52:44because you always got a glass of wine,
0:52:44 > 0:52:49so I managed to just have the one glass, then get back on with the job.
0:52:49 > 0:52:54I think the job he's done here is fantastic and just check out the outside now!
0:52:59 > 0:53:03That troublesome tree took Stephen, a tree surgeon
0:53:03 > 0:53:06and a digger two and a half days to chop down.
0:53:06 > 0:53:09Carol and Brian decided a spruce-up was in order,
0:53:09 > 0:53:14so they've matched the paintwork and garden wall to their own property.
0:53:14 > 0:53:17Inside, the finish isn't just cosmetic.
0:53:17 > 0:53:22There's a new damp-proof course, new wiring and the walls have been re-plastered.
0:53:22 > 0:53:28New windows include that previously bricked-up kitchen window and a skylight.
0:53:28 > 0:53:31The formerly dark kitchen is now much lighter
0:53:31 > 0:53:37and Carol and Brian gave Stephen the nod to increase the budget from £12,000 to £15,000 up to £20,000.
0:53:37 > 0:53:40It's a lot of money to spend on a house.
0:53:40 > 0:53:46It was nice to think that they trusted me to take control and manage the project.
0:53:46 > 0:53:49It gives you a nice sense of trust.
0:53:49 > 0:53:53It'll only help the relationship between me and Brian and Carol.
0:53:53 > 0:53:55They're very pleased with the job.
0:53:55 > 0:53:58And they're not the only ones.
0:53:58 > 0:54:04We've had plenty of the neighbours passing and commenting on how nice the property looked
0:54:04 > 0:54:09and it would enhance the value of their properties, so, as a joke, I said to one of them,
0:54:09 > 0:54:13"We've probably increased the value of your properties by about 10,000,"
0:54:13 > 0:54:19so when the job's finished, we'll collect 2,000 off each of them towards Brian's costs, I think.
0:54:19 > 0:54:26The property cost £36,000 at auction, so added to the £20,000 for the work,
0:54:26 > 0:54:29the total outlay here was 56,000.
0:54:29 > 0:54:32Can Carol and Brian recover their costs?
0:54:34 > 0:54:38We invited two local estate agents to the new and improved house
0:54:38 > 0:54:40to hear their thoughts.
0:54:40 > 0:54:45The refurbishment of this property has been done to a very good standard.
0:54:45 > 0:54:49The kerb appeal, more than anything when you drive up to the property,
0:54:49 > 0:54:51that's different from before
0:54:51 > 0:54:54with the stonework and, obviously, the new door.
0:54:54 > 0:54:57Internally, the work has been done to quite a high standard,
0:54:57 > 0:55:02all neutral colours, neutral carpets, new bathroom and fitted kitchen.
0:55:02 > 0:55:05I've very impressed. You've got a reasonable-sized lounge,
0:55:05 > 0:55:09a nice refurbished kitchen with a hob and oven in, etcetera.
0:55:09 > 0:55:11Upstairs has the two bedrooms,
0:55:11 > 0:55:16a well-refurbished bathroom and I don't think we'd have too much problems letting it.
0:55:16 > 0:55:21Selling it might be slightly different, but renting it out, we shouldn't have too much problems.
0:55:21 > 0:55:28The reasoning behind the purchase was for Brian and Carol to be in control of who lived there,
0:55:28 > 0:55:31so they have no intention of selling any time soon,
0:55:31 > 0:55:36but the estate agents did value it at between 60,000 and 75,000
0:55:36 > 0:55:40which would give them a pre-tax profit of between 4,000 and 19,000.
0:55:40 > 0:55:46However, the plan here is rental, so what could this two-bed house achieve for that?
0:55:49 > 0:55:54I would say between £400 per calendar month and £425 per calendar month.
0:55:54 > 0:56:01I would suggest that we rent this property out at a figure of £375 to £400 per calendar month.
0:56:01 > 0:56:07I think, on the rental market, they will be happy with 400 to 425.
0:56:07 > 0:56:09I think they'll easily achieve that.
0:56:09 > 0:56:15Once somebody comes in and sees how well the house has been done, that will attract quite a few people.
0:56:15 > 0:56:21£425 per calendar month would mean a whopping yield of over 9%.
0:56:22 > 0:56:25Does Stephen think that may encourage Brian and Carol
0:56:25 > 0:56:29to get as enthusiastic about property renovation as he is?
0:56:29 > 0:56:34I think this opportunity to buy a property next door to them is a one-off.
0:56:34 > 0:56:39I don't think they'll ever go back into property investment, not like myself.
0:56:39 > 0:56:44I think they'll be happy just to stay happily retired.
0:56:47 > 0:56:51Join us next time when we meet more plucky auction buyers trying
0:56:51 > 0:56:54to make a killing on property or just to find a place to live.
0:56:54 > 0:56:57- We'll see you then. Goodbye. - Goodbye.- Goodbye.
0:57:18 > 0:57:21Subtitles by Red Bee Media Ltd