0:00:02 > 0:00:06Hello. Browsing through auction catalogues can be very tempting.
0:00:06 > 0:00:10But it's quite another matter raising your hand to buy something.
0:00:10 > 0:00:15You need courage and conviction buying your home under the hammer.
0:00:41 > 0:00:46Derelict, decaying, but delightful. You can find all sorts of properties at the auctions.
0:00:46 > 0:00:50So let's see what our buyers went for on today's show.
0:00:51 > 0:00:55You'll need some very thick pile carpet for this Cardiff flat.
0:00:55 > 0:01:00I've got to show you this. Look at that. Absolutely fantastic.
0:01:01 > 0:01:06Could this three-bed property in Dover benefit from layout changes?
0:01:06 > 0:01:10I'm just wondering whether this reception room is big enough.
0:01:11 > 0:01:17And in Middlesbrough let's see what's behind the round window today.
0:01:17 > 0:01:21It's the little things that make you fall in love with a property.
0:01:22 > 0:01:28All of these properties went to auction and we'll find out who bought them and what they paid
0:01:28 > 0:01:31when they went under the hammer.
0:01:33 > 0:01:38I'm in Adamsdown, a traditional residential suburb of Cardiff.
0:01:38 > 0:01:43Undergoing a lot of regeneration at the moment, which is good news.
0:01:43 > 0:01:47And it's only ten minutes' walk from Cardiff city centre.
0:01:49 > 0:01:55With its excellent shopping centres, the Millennium stadium
0:01:55 > 0:02:00and the impressive Cardiff Castle, the Welsh capital has plenty to offer in amenities
0:02:00 > 0:02:07and Adamsdown has, too, with a revamped shopping area hoping to attract new retailers and shoppers.
0:02:09 > 0:02:16I'm here to see a one-bedroom flat. At a guide price of 40,000 quid, let's take a look.
0:02:16 > 0:02:22'The flat is on the ground floor of what was originally a two-bed terraced house, now sub-divided.'
0:02:22 > 0:02:27So your own entrance after the main entrance, which is good.
0:02:27 > 0:02:33Bedroom there. It's got some built-in cupboards. Looks to be in reasonable condition.
0:02:33 > 0:02:38Your first impression when you walk through the door is it's reasonably well looked after.
0:02:38 > 0:02:44Paint's OK. Through into this area here, your main living room.
0:02:45 > 0:02:48With a fireplace. I've got to show you this.
0:02:48 > 0:02:51Look at that. Absolutely fantastic.
0:02:52 > 0:02:57It's a floating fire surround. Every home should have one.
0:02:57 > 0:03:01But that's that, then through to the kitchen.
0:03:01 > 0:03:06# Float, float on Come on, come on, come on
0:03:06 > 0:03:08# Float on... #
0:03:08 > 0:03:14'Levitating fixtures and fittings aside, there are no other mysteries about this flat so far.
0:03:14 > 0:03:18'Everything seems in good order, so on into the kitchen.'
0:03:18 > 0:03:23It's not too bad. It looks like it was reasonably recently refurbished.
0:03:23 > 0:03:27A bit of a clean up and you could leave it pretty much as it is.
0:03:27 > 0:03:33Then right to the rear where you've got a loo. It's designed as a wet room at the moment.
0:03:33 > 0:03:39I think you'd just about squeeze a bath in there. But that's your flat.
0:03:40 > 0:03:45# What you get is what you see Ain't nothing more to it
0:03:45 > 0:03:51# If you want another woman like me It takes a man to do it... #
0:03:51 > 0:03:55'It is what it says on the tin or auction catalogue in this case -
0:03:55 > 0:04:00'a one-bed flat in good shape. Yes, the wet room is a disappointment,
0:04:00 > 0:04:03'but there's something through that back door to make me smile again.'
0:04:03 > 0:04:10The good thing about ground-floor flats is they generally have some kind of outdoor space,
0:04:10 > 0:04:15but in the case of this one, it's a real added bonus that it's so big.
0:04:15 > 0:04:22It's obviously not been particularly well looked after, but it's a really great space.
0:04:22 > 0:04:29One other thing to talk about is the lease. This particular flat has a 75-year lease left to run.
0:04:29 > 0:04:36That's long enough to mean that getting hold of mortgage finance shouldn't be too much of an issue,
0:04:36 > 0:04:40but there are lots of things you can do to extend the lease.
0:04:40 > 0:04:46The shorter it has to run, the more expensive it'll be. Before you buy leasehold property,
0:04:46 > 0:04:51you really need to get your solicitor to check those details.
0:04:51 > 0:04:56'In simple terms, leasehold ownership just means a long tenancy.
0:04:56 > 0:05:01'Under a 1993 Act, you have the right to add 90 years to your lease.
0:05:01 > 0:05:08'So in this case, with 75 years remaining on this one, you'd get a new lease for 165 years
0:05:08 > 0:05:12'or you could negotiate with your landlord if you both wish,
0:05:12 > 0:05:20'so it's worth checking that out. What does a local property expert think of this flat?'
0:05:20 > 0:05:26My first impression seeing the apartment is that it's very compact
0:05:26 > 0:05:31and it's an opportunity to get on the property ladder. The work would be minimal.
0:05:31 > 0:05:35I would concentrate more on cosmetics and improving the presentation,
0:05:35 > 0:05:38particularly the wet room.
0:05:38 > 0:05:42Structurally and in presentation, it looks in good order.
0:05:42 > 0:05:49'So we're agreed it's not in bad condition. Once spruced up, would it be best suited for sale or rental?'
0:05:49 > 0:05:56The property is in a zone in high demand for renting because it's so convenient for the city centre.
0:05:56 > 0:05:59I think it would rent for £450 per calendar month.
0:05:59 > 0:06:02'How do the resale figures sound?'
0:06:02 > 0:06:06It would reach in the region of £75,000.
0:06:06 > 0:06:11Well, the flat is small, but almost perfectly formed
0:06:11 > 0:06:16and, I think, a good rental opportunity or nice place to live.
0:06:16 > 0:06:19Let's see who fancied it.
0:06:19 > 0:06:23OK, moving on to the next lot. Lot 3 in the catalogue.
0:06:23 > 0:06:27A ground-floor flat in a converted house.
0:06:27 > 0:06:30Who'll start me off at 40,000?
0:06:30 > 0:06:3340,000? 35? 35 to get things moving?
0:06:33 > 0:06:39- 35. Thank you.- 'This is a first on Homes Under The Hammer as, unfortunately,
0:06:39 > 0:06:45'this is a house without a hammer. Due to a technical glitch, we didn't record the hammer going down,
0:06:45 > 0:06:52'but it was bought for bang on the guide price of £40,000 by a trio of investors,
0:06:53 > 0:06:57'Claire, her partner Steve and their colleague Rob, on the right here.
0:06:57 > 0:07:05'Steve was unable to come and tell us about the plans, so I met up with Claire and Rob to find out more.'
0:07:05 > 0:07:10- Claire, Rob, great to meet you both. Congratulations.- Thank you.
0:07:10 > 0:07:15- Tell me why you wanted to buy this flat.- As an investment.- Yeah.
0:07:15 > 0:07:22Basically, Claire's been doing a lot of research and we've looked around and this was the best opportunity.
0:07:22 > 0:07:26Great. How did it all start? How did the working relationship begin?
0:07:26 > 0:07:28It was kind of a joint decision.
0:07:28 > 0:07:35Claire and Steve have done various bits on their own. I wanted to get a hand in. It progressed from there.
0:07:35 > 0:07:38# Join with us
0:07:38 > 0:07:41# Join with us, join with us... #
0:07:41 > 0:07:46'Rob's joining Claire and Steve who already have a small rental portfolio.
0:07:46 > 0:07:52'Rob served his apprenticeship under Steve and is now a self-employed electrician.
0:07:52 > 0:07:59'They've known each other for years and seems logical to go into business on their first project.'
0:08:00 > 0:08:06- So why this flat, then? - It was a it of an accident. We wanted a freehold property.
0:08:06 > 0:08:12The guy from the auctioneers said, "Just have a look at this flat and see what you think."
0:08:12 > 0:08:19- We worked out the numbers and realised it was a good buy. - Why were you so keen on a freehold?
0:08:19 > 0:08:24Currently we've got flats in Essex and they're all leasehold.
0:08:24 > 0:08:29We're trying to go more freehold to avoid service charges and ground rent.
0:08:29 > 0:08:34- So where are you based? - I'm based in Camberley. Surrey.
0:08:34 > 0:08:38- And Claire?- I'm from Essex. - So what brought you over to Wales?
0:08:38 > 0:08:42Myself and Steve have been coming here for many years with our jobs.
0:08:42 > 0:08:47We travel a lot anyway, so we know Wales. It's a nice area.
0:08:47 > 0:08:54- So it was a good opportunity. - What sort of issues will that have, that it's 150 miles away?
0:08:54 > 0:09:00- We are going to get a letting agent to manage it. The idea is to buy to let.- Right.
0:09:00 > 0:09:05- and build a portfolio up here. - So this will be the first of many? - Hopefully, yes.
0:09:05 > 0:09:08We've done an approximate yield of about 8-9%.
0:09:08 > 0:09:13Our properties in Essex are reaching 4-5%.
0:09:13 > 0:09:16- And it's doubled here.- Right.
0:09:16 > 0:09:21'With Claire in charge of the paperwork and the practical skills of Rob and Steve,
0:09:21 > 0:09:28'this should be a winner. They have an £8,000 budget and a sensible £3,000 contingency fund
0:09:28 > 0:09:34'in case there are unexpected horrors. There are no major structural changes planned.
0:09:34 > 0:09:40'The kitchen will be replaced, but there's no decision on the wet room. What about the garden?'
0:09:40 > 0:09:46- What are you going to do outside? It's a mess, but nice space. - Absolutely, yeah.
0:09:46 > 0:09:50We'll deck part of the area, really low maintenance, shingle.
0:09:50 > 0:09:54And a couple of bedding planters. Nothing major.
0:09:54 > 0:09:56Just to make it look tidy.
0:09:56 > 0:10:03- And who'll be doing the work? - Myself and Steve. With other people, depending on work commitments.
0:10:03 > 0:10:08- And how will you do that? - We'll be travelling, doing 3- and 4-day stints.
0:10:08 > 0:10:15- And timescale for getting it sorted? - With other work commitments, probably six months. Possibly nine.
0:10:15 > 0:10:20I know it's a long time, but it's fitting with other commitments.
0:10:20 > 0:10:27- It's a realistic timescale.- Are you daunted or is it water off a duck's back?- Water off a duck's back.
0:10:27 > 0:10:31It's the travelling. The work I don't mind.
0:10:31 > 0:10:36- Listen, congratulations.- Thanks. - Good luck with it.- Thank you.- I look forward to seeing how you get on.
0:10:37 > 0:10:42So the first project for Rob, Claire and Claire's partner Steve.
0:10:42 > 0:10:47How are they going to get on? There's not too many issues,
0:10:47 > 0:10:53but whenever you embark on a long-distance renovation, and Essex to Wales is a long way,
0:10:53 > 0:10:58it does throw up problems. Still, they've got a generous timescale, 6-9 months.
0:10:58 > 0:11:02How will they get on? You can find out later in the show.
0:11:06 > 0:11:09I'm headed for a place near Dover in Kent now,
0:11:09 > 0:11:13somewhere that was once home to flour and paper mills.
0:11:13 > 0:11:19I'm guessing the vital water source of those industries is also where its attractive name came from.
0:11:22 > 0:11:28The property I'm here to see is in a village called River, just a few miles outside Dover.
0:11:28 > 0:11:34It's a desirable spot, more leafy suburb than village in the traditional sense
0:11:34 > 0:11:41and it's elevated over the valley with lovely views. The view of the property is somewhat obscured,
0:11:41 > 0:11:45but I'm told behind this hedge is a three-bedroom house.
0:11:45 > 0:11:49It had a guide price of £170,000-£175,000.
0:11:50 > 0:11:57'Today is not ideal for those grand views, but there is a hint of what might be visible on a clear day.
0:11:57 > 0:12:03'Pop round the back and there's an impressively grand-looking property in an equally-impressive garden.
0:12:03 > 0:12:09'I believe the house once owned much of the surrounding land before it was sold off 70 years ago,
0:12:09 > 0:12:14'so it really is a remnant of a grander age.'
0:12:14 > 0:12:20Oh, two rooms! Which room to go in? I do like to have a boot room,
0:12:20 > 0:12:26somewhere to walk in and take your coats off, put your muddy boots and all the things for the dog.
0:12:26 > 0:12:33But I'm guessing this is the kitchen. It's a little disappointing because it's so small.
0:12:33 > 0:12:38You could think about knocking through and opening this space up,
0:12:38 > 0:12:43but I really like this. It's like an old Rayburn or a mini Aga.
0:12:43 > 0:12:49What you could do is get somebody in to restore that, powdercoat it. It would look fantastic.
0:12:49 > 0:12:54So another idea would be to think about knocking through here.
0:12:54 > 0:13:00I'm just wondering whether this reception room is going to be big enough. Ah, yes.
0:13:00 > 0:13:05Now this could work. You could leave that little boot room, knock through this wall, open this up.
0:13:05 > 0:13:09You've got a lovely big window so you could have access to the garden,
0:13:09 > 0:13:14but some worrying signs of damp. Look at the state of that. Not good.
0:13:14 > 0:13:21I think there will be bits and pieces wrong with it. It's a property you'll want to strip back
0:13:21 > 0:13:27to the bare brick. You'll need to spend money in here. But lots of opportunity.
0:13:28 > 0:13:33'There's another sitting room, so loads of flexible space.
0:13:33 > 0:13:38'Although there is tons to do, there are still character features
0:13:38 > 0:13:43'like this lovely staircase leading to three good-size bedrooms.
0:13:43 > 0:13:47'This house is from a time when houses were on a different scale.'
0:13:47 > 0:13:50# Oh, won't you tell me
0:13:50 > 0:13:54# Where have all the good times gone?
0:13:54 > 0:13:59# Where have all the good times gone? #
0:13:59 > 0:14:05'So there will be a great deal of work to make this place better, but is it worth making it bigger?'
0:14:05 > 0:14:11Well, you could easily push out to the rear with a conservatory extension,
0:14:11 > 0:14:15a loft conversion is also possible, adding another bedroom up there.
0:14:15 > 0:14:19But neither of these ideas are going to make you a whole load of cash.
0:14:19 > 0:14:27You might only just recover your costs. Personally, I'd look into a bigger development entirely.
0:14:27 > 0:14:30In fact, a whole separate dwelling.
0:14:30 > 0:14:34You've got half an acre of garden to play with.
0:14:34 > 0:14:39There's access along the side and still enough land for a decent garden for each house.
0:14:39 > 0:14:43There's no guarantee that the local council will go for that,
0:14:43 > 0:14:51but you could buy a home with a lovely garden and find it's a house with a development plot!
0:14:51 > 0:14:58'This could be a very exciting opportunity to acquire a plot in an established residential area,
0:14:58 > 0:15:05'not an everyday find. If bought for anything near the guide price of £170,000-£175,000,
0:15:05 > 0:15:07'it could well be a moneyspinner.
0:15:07 > 0:15:13'It would definitely be worth doing some research here to choose between a development opportunity
0:15:13 > 0:15:15'or a family home and garden.
0:15:15 > 0:15:20'To help weigh up the evidence, a local estate agent took a look.'
0:15:20 > 0:15:21First impressions,
0:15:21 > 0:15:27it needs quite a bit of work, but it's got a lot of potential. It could be a really good home.
0:15:27 > 0:15:31'What sort of returns could be made once it's refurbished?'
0:15:31 > 0:15:37I think if the property was refurbished to a high standard, it could be worth £250,000.
0:15:37 > 0:15:44If it was extended to the side, you could be looking at somewhere in the region of £300,000.
0:15:44 > 0:15:50'But with that eye-catching garden ripe for development, what are the pitfalls to be wary of?'
0:15:50 > 0:15:55The council would have some impact on what you could put on the site.
0:15:55 > 0:15:59A three-bedroom detached could work, but again it's down to the council.
0:15:59 > 0:16:05The downside if they got planning permission is that it would eat into their garden size.
0:16:05 > 0:16:08It would impact on their house.
0:16:08 > 0:16:12'How much of an impact could that have on the value?'
0:16:12 > 0:16:15It would probably devalue it by 20% or so.
0:16:15 > 0:16:20'What sort of sale price could a new development achieve?'
0:16:20 > 0:16:24A new three-bed detached could be worth £175,000-£200,000.
0:16:24 > 0:16:31It's a decent development opportunity in a popular part of Dover and maybe the chance to build
0:16:31 > 0:16:34some serious profit in the garden.
0:16:34 > 0:16:37Let's see who went for it and what they thought at the auction.
0:16:37 > 0:16:41This property came up towards the end of the day.
0:16:41 > 0:16:44Now we come to a lovely property
0:16:44 > 0:16:48in the lovely village of River. Start me at 170,000?
0:16:48 > 0:16:53160, then? Give you all a chance. 160,000 anywhere?
0:16:53 > 0:16:58150. Thank you. 150 I have. I don't mind where we start. 155. 158.
0:16:58 > 0:17:00And 160.
0:17:01 > 0:17:07165. That's the gentleman I like. 165. 168? 168.
0:17:07 > 0:17:09And 170? 170 I'm bid.
0:17:09 > 0:17:11172?
0:17:13 > 0:17:18At £170,000 I'm bid. You're all out at the back at £170,000, then?
0:17:18 > 0:17:23For the first time. 170,000 for the second time.
0:17:23 > 0:17:28170,000. Third and final time. At £170,000. Are you all done?
0:17:28 > 0:17:31Sold at 170.
0:17:31 > 0:17:37- Lovely property.- 'The successful bidder who got the lot for £170,000 was Thomas.
0:17:38 > 0:17:45'But he was the proxy bidder for his nephew and niece, Dan and Robin, as they couldn't make the auction.
0:17:45 > 0:17:51'They're now the new owners of the property. Dan lives locally in River with his wife and new-born son.
0:17:51 > 0:17:57'He manages a builders merchants so seems the ideal person to update this place.
0:17:57 > 0:17:59'I met him to find out more.'
0:17:59 > 0:18:05Dan, congratulations. This is great news. You weren't at the auction.
0:18:05 > 0:18:10- No, my uncle went on my behalf. - You couldn't be there on the day! - No, we kept in touch.
0:18:10 > 0:18:15Unfortunately, I was away at a conference, so I couldn't go.
0:18:15 > 0:18:21- The one day in the year I couldn't get away.- Can you believe that? It fell on THAT day.
0:18:21 > 0:18:25My dad said it was a sign not to do it, but I decided against it.
0:18:25 > 0:18:29Although it was fairly last-minute, the whole thing,
0:18:29 > 0:18:33we thought it was a good calculated risk.
0:18:33 > 0:18:38- How last-minute was this? - I literally walked past. I've got a new-born son, Harry,
0:18:38 > 0:18:43and I walked past with him in the pram and saw so much potential here.
0:18:43 > 0:18:49It wasn't until we actually bought it that we saw there was even more potential.
0:18:49 > 0:18:54- That was a very expensive baby walk. - Absolutely, yeah! Yeah.
0:18:55 > 0:19:00'The initial was to renovate and for Robin, Dan's sister, to move in,
0:19:00 > 0:19:07'but the potential here has made the siblings rethink their strategy and now they aim to sell it.
0:19:07 > 0:19:12'But first they want to combine the kitchen and dining room into one large kitchen/diner
0:19:12 > 0:19:16'and add a single-storey extension onto the living room.
0:19:16 > 0:19:22'The upstairs layout will stay as it is, possibly with an en suite for one of the bedrooms,
0:19:22 > 0:19:26'but they also have plans to extend into the loft to create a fourth en suite bedroom.
0:19:26 > 0:19:30'I reckon they do run the risk of overdeveloping this house,
0:19:30 > 0:19:35'but they're sure they've got their sums worked out on that score.'
0:19:35 > 0:19:39You're maxing this house out, but what about the real potential?
0:19:39 > 0:19:43Have you spoken to the planners about building a separate dwelling?
0:19:43 > 0:19:48I have indeed and it is a big possibility.
0:19:48 > 0:19:52We never even thought of that when we initially purchased it,
0:19:52 > 0:19:56but you come here and you stand and start seeing bigger things.
0:19:56 > 0:20:00But you're not really thinking about doing that. You want to extend.
0:20:00 > 0:20:04I want to extend this house towards the rear,
0:20:04 > 0:20:09but there's no reason with the room that we've got next door
0:20:09 > 0:20:15that we couldn't almost mimic this property once we finalise it and do the same next door.
0:20:15 > 0:20:21- Hold on. You want to do both options?- I would love to do both.
0:20:21 > 0:20:25- You want to extend this and then build another one next door?- Yes.
0:20:25 > 0:20:29- That really will be value for money. - Yeah, yeah.
0:20:29 > 0:20:35'That's a different ball game altogether. Dan and Robin are planning a major refurbishment
0:20:35 > 0:20:42'and a whole new build from scratch. They have a £35,000 budget and a three-month turnaround.
0:20:42 > 0:20:46'Then they hope to have a new build on the plot in nine months.
0:20:46 > 0:20:52'Even for experienced developers this would be a full-time job.'
0:20:52 > 0:20:55What does your wife and baby think about this?
0:20:55 > 0:21:00- They obviously want my time as much as possible.- And won't get that!
0:21:00 > 0:21:05Which is why it's good that my sister is my partner in this. She's got more time.
0:21:05 > 0:21:08She works less hours than me.
0:21:08 > 0:21:13- I'll be getting her to manage the project throughout the day. - It's not for a novice.
0:21:13 > 0:21:17What experience does your sister have in building?
0:21:17 > 0:21:24- She doesn't have any!- None at all? - None.- I think you're throwing her in the deep end, if you ask me!
0:21:24 > 0:21:30But there's a lot of tradesmen that I know and people I can trust to manage it.
0:21:30 > 0:21:37It's just good for her to be involved but also be available to go out and get things and pay for things.
0:21:37 > 0:21:43Do you think you'll start off with this property first, concentrate on this, sell this,
0:21:43 > 0:21:50and then think about potentially using the site next door? Would you divide it up and sell it
0:21:50 > 0:21:55- without that portion of the garden? - We would, but if we could sell them at the same time
0:21:55 > 0:22:02or at least when the other property is up, it would be nice to show two premium houses for sale,
0:22:02 > 0:22:08- side by side.- It's a bit of a BOGOF. Buy one, get one free. Buy this one and move in next door.
0:22:08 > 0:22:13- Maybe, who knows? - So do you think you've found a little pot of gold buying this?
0:22:13 > 0:22:17Yeah, I hope I've found my first pot of gold. Yeah, yeah.
0:22:17 > 0:22:23- Good luck with this project.- Thank you.- It'll be interesting to find out what you actually do here.
0:22:23 > 0:22:25Thank you.
0:22:25 > 0:22:29I'm surprised Dan didn't spot this potential earlier,
0:22:29 > 0:22:32but I am so glad he has now.
0:22:32 > 0:22:36It is a big undertaking for a first project, though,
0:22:36 > 0:22:41and the siblings have got a lot on their hands, but if they get that planning,
0:22:41 > 0:22:45that is a big pot of cash at the end of this River rainbow.
0:22:45 > 0:22:49Find out how it goes later in the show.
0:22:50 > 0:22:54Coming up: this place in Middlesbrough has a noisy neighbour.
0:22:54 > 0:23:00However, if you need a pint of milk or petrol for your mower, you haven't got far to go.
0:23:00 > 0:23:05Near Dover, could Dan's double development land him in deep water?
0:23:05 > 0:23:09I've easily got another 30K to spend, I believe, to finish this property.
0:23:11 > 0:23:15But first, back in Cardiff, something just had to go.
0:23:15 > 0:23:19Textured ceilings are not an in thing so we replastered all the ceilings.
0:23:25 > 0:23:31'We return now to Cardiff and the Adamsdown area, 10 minutes from the city centre.
0:23:31 > 0:23:37'This ground-floor one-bedroom flat had a compact wet room and large garden.
0:23:38 > 0:23:44'Rob and his new developing partners, Claire and Steve, bought it for £40,000.
0:23:44 > 0:23:48'Unfortunately, Steve couldn't be with us on our first visit.
0:23:48 > 0:23:56'Rob had been an electrician, Steve's apprentice, and was now learning the art of development.
0:23:56 > 0:24:00'However, this project wasn't exactly on their doorstep
0:24:00 > 0:24:05'and travelling from south-east England to Wales was a major factor.'
0:24:05 > 0:24:12- Who'll be doing the work? - Myself and Steve, yeah, with others, depending on work commitments.
0:24:12 > 0:24:15And how will you do that?
0:24:15 > 0:24:20We'll be doing 3- and 4-day stints, and then travelling back home.
0:24:20 > 0:24:27'The team had an £8,000 budget and a relaxed 6-9 month timescale for the renovation.
0:24:27 > 0:24:33'When we returned 9½ months later, Steve had come along with Claire and Rob
0:24:33 > 0:24:38'to show us the result of their hard graft. From the start, the kerb appeal looked promising
0:24:38 > 0:24:43'with a freshly-painted exterior and new front door.
0:24:43 > 0:24:49'Inside, the bedroom has been freshened up with new flooring and new cupboards,
0:24:49 > 0:24:55'while at the back the flooring continues to a spacious, light living room
0:24:55 > 0:25:00'with the added feature of newly-installed patio doors.
0:25:00 > 0:25:04'But it's the contemporary kitchen that really catches the eye here.
0:25:04 > 0:25:09'It's beautifully tiled and perfectly finished off, as Rob explains.'
0:25:09 > 0:25:16There was a pretty basic kitchen before, so we've stripped it out, redesigned it, formed an L-shape.
0:25:16 > 0:25:20Oven was originally here so we've integrated it into the units.
0:25:20 > 0:25:25Downlighters we've installed to reflect light off the cabinets.
0:25:25 > 0:25:32The new floor we've put in runs through into the bathroom. It's minimal and just flows, really.
0:25:32 > 0:25:37The washing machine was all exposed, so we've put some doors across it.
0:25:37 > 0:25:40It makes it a bit quieter as well.
0:25:40 > 0:25:44I'm really happy with the result. It's turned out really well.
0:25:44 > 0:25:48It's much brighter, much more usable space, lots of storage.
0:25:48 > 0:25:50It just feels bigger.
0:25:52 > 0:25:56'The style in here certainly gives the kitchen a unique lift
0:25:56 > 0:26:00'and the wet room is no less impressive.
0:26:01 > 0:26:05'This definitely has a touch of class about it,
0:26:05 > 0:26:10'but there were problems getting to this point, as Steve explains.'
0:26:10 > 0:26:16The bathroom's a wet room and when people had a shower, it was seeping through,
0:26:16 > 0:26:21and the whole floor slab was saturated. And it ran the wrong way.
0:26:21 > 0:26:26So when you had a shower, the water ran out of the bathroom and into the lobby.
0:26:26 > 0:26:33We had to completely strip it out and put a waterproof membrane in and retile it.
0:26:33 > 0:26:39I think it's been designed very well, especially the screen. You can use the toilet without getting wet
0:26:39 > 0:26:46cos it's dry now! And, yeah, I think it works really well, much better than it was.
0:26:46 > 0:26:52'Steve and Rob did the entire renovation and with Claire designing the look of the flat
0:26:52 > 0:26:58'a lot of care and attention has been devoted to achieving the perfect finish.
0:26:58 > 0:27:05'This experienced team know that cutting corners does not a good rental investment make.'
0:27:05 > 0:27:09Through our experience - we've got a small portfolio -
0:27:09 > 0:27:15we find that you can buy medium-priced products and, if fitted correctly, they'll last for years.
0:27:15 > 0:27:20The observation of bits and pieces like the textured ceilings - that had to go.
0:27:20 > 0:27:25It's not an in thing now, so we replastered all the ceilings.
0:27:25 > 0:27:28Obvious things that were really bad and needed TLC.
0:27:28 > 0:27:32# Little things that you do
0:27:32 > 0:27:35# Make me glad I'm in love with you... #
0:27:35 > 0:27:39'It's not just the inside that's had an eye for detail.
0:27:39 > 0:27:46'Beyond those new French windows, the team have created something worthwhile from that grim garden.'
0:27:46 > 0:27:52When we started, the whole garden was a mess. It would flood this area.
0:27:52 > 0:27:58We put this decking down and covered over where the flooding was and put extra drainage in.
0:27:58 > 0:28:03There were two planters either side, so we extended them round to join up.
0:28:03 > 0:28:07There was a big concrete step at the back which was really rough.
0:28:07 > 0:28:11We put false grass down to brighten it up with lower maintenance.
0:28:11 > 0:28:15'The trio took three months to do the actual renovation,
0:28:15 > 0:28:20'but work commitments meant it was spread over 9½ months.
0:28:20 > 0:28:25'After driving the three hours from south-east England, they'd spend several days here.
0:28:25 > 0:28:30'How did their £8,000 budget stand up?'
0:28:30 > 0:28:37We actually spent £8,400, but we did put French doors in, which we hadn't originally planned.
0:28:37 > 0:28:41And we did a lot of replastering and replacing the ceilings,
0:28:41 > 0:28:45so that's why it went slightly over our £8,000 budget.
0:28:46 > 0:28:53'Add to that their purchase price of £40,000, the team have spent a total of just under £48,500.
0:28:53 > 0:29:00'What do two local estate agents make of this latest addition to Cardiff's property rental market?'
0:29:00 > 0:29:03When I first saw it,
0:29:03 > 0:29:10it was probably OK, but now it looks like it's been totally transformed, which is a nice surprise.
0:29:10 > 0:29:17'First impressions, very impressed with the refurbishment that they've carried out here.'
0:29:17 > 0:29:24It's a very good standard, very neutral, very open canvas for somebody to put their stamp on.
0:29:24 > 0:29:29The garden is outstanding. It's going to be a major selling point for any buyer.
0:29:29 > 0:29:34'With the team looking to build a rental portfolio in the area,
0:29:34 > 0:29:38- 'what income could the flat achieve?'- This would achieve
0:29:38 > 0:29:42£475, maybe £500, per calendar month.
0:29:42 > 0:29:46If they rent, they should hope to achieve £500 per calendar month.
0:29:46 > 0:29:52500, yes, good. Acceptable. 475, a bit low.
0:29:52 > 0:29:56'If they manage to get that figure of £500 per calendar month,
0:29:56 > 0:30:02'that would generate an annual rental yield of over 12% for the team.
0:30:02 > 0:30:08'The estate agents reckon the flat could sell for £80,000, which would mean a profit of £31,600
0:30:08 > 0:30:12'minus the usual taxes and expenses, of course.'
0:30:14 > 0:30:21That's what we budgeted for. Well, that's what we calculated the end resale value would be,
0:30:21 > 0:30:23so that's within our expectations.
0:30:26 > 0:30:33'It seems that the team have got their sums right on their budget and valuations,
0:30:33 > 0:30:36'so hopefully they'll get the returns.
0:30:36 > 0:30:42'With the success of their first joint venture, will Rob be included in their future projects?'
0:30:42 > 0:30:46- - Yes.- Oh, definitely. - - Every day of the week.
0:30:46 > 0:30:49We're looking forward to it.
0:30:51 > 0:30:56'I'm in Middlesbrough, North Yorkshire, not far from Redcar,
0:30:56 > 0:31:02'in Ormesby, now a suburb. The name Ormesby dates back to the Domesday Book,
0:31:02 > 0:31:08'although the property I'm here to see represents a more recent bit of history.'
0:31:08 > 0:31:15Throughout the village there are reminders that this was once part of the Ormesby Hall estate.
0:31:15 > 0:31:18In particular, these cottages,
0:31:18 > 0:31:23built probably for estate workers in the very popular for the time Arts and Crafts style.
0:31:23 > 0:31:30The one I'm here to see is this one at the end. Two bedrooms and a guide price of £65,000 plus.
0:31:30 > 0:31:32Let's take a look.
0:31:32 > 0:31:36'First off, though, this end terrace is perhaps not in the best location.
0:31:36 > 0:31:42'It's right on a busy road opposite a pub and next to a petrol station,
0:31:42 > 0:31:47'but the property itself is certainly attractive enough.'
0:31:47 > 0:31:52Well, a fairly simple layout. In some instances, that's a really good thing.
0:31:52 > 0:31:57Stairs going up there, splitting off either way at the top.
0:31:57 > 0:32:02One living room over that side and then through to this side, where there's a similar one.
0:32:02 > 0:32:08There's little features which I love. This little, I don't know, alcove-y area,
0:32:08 > 0:32:12with the little window underneath the stairs. Maximising space.
0:32:12 > 0:32:19And just throwing in exactly that - a bit of character. Through here to a recently refurbished kitchen.
0:32:19 > 0:32:25Not dislikeable at all, actually. You could pretty much, with a bit of cleaning up,
0:32:25 > 0:32:29leave this as it is, but you might want to do your own thing.
0:32:29 > 0:32:33But straight away I'm seeing... You know, this is great.
0:32:33 > 0:32:40# Yeah, yeah There's something 'bout you, baby I like
0:32:40 > 0:32:43# I said yeah, yeah
0:32:43 > 0:32:47# There's something 'bout you, baby, I like... #
0:32:47 > 0:32:51'There's plenty of character here. Some of it may be unwanted,
0:32:51 > 0:32:55'but there's space, too, with those well-proportioned reception rooms.
0:32:55 > 0:33:00'Upstairs, there's more to like - a good-sized bathroom with a modern white suite.
0:33:00 > 0:33:08'And two bedrooms, one larger, and the other not so large, but both in decent condition.
0:33:08 > 0:33:11'A spot of redecoration and it could be ready to go.'
0:33:11 > 0:33:17It's the little things that make you fall in love with a property. This is one, this round window.
0:33:17 > 0:33:24It doesn't open, but what a charming thing and I'd certainly want to highlight this.
0:33:24 > 0:33:28'And there's much to like outside as well as inside.'
0:33:28 > 0:33:33At the rear of the property, you get a feeling for the character
0:33:33 > 0:33:39with these brick archways above the windows and the exposed stone. It really is lovely.
0:33:39 > 0:33:43You've got this little courtyard, a half-decent-sized garden,
0:33:43 > 0:33:50but you really do get a flavour of how close you are to the road, the petrol station and store next door
0:33:50 > 0:33:56and the pub opposite. All those things could be an issue - noise from the pub and the road
0:33:56 > 0:34:02and potentially late-night noise from the garage. But the good news is if you need milk or petrol,
0:34:02 > 0:34:05you haven't got far to go.
0:34:07 > 0:34:13'OK, am I being positive or just plain Pollyanna-ish about this property because I like it?
0:34:13 > 0:34:16'It may be up to a local estate agent
0:34:16 > 0:34:19'to take a clearer-eyed view of this two-bed,
0:34:19 > 0:34:22'guided at £65,000 plus.'
0:34:25 > 0:34:30Positive - it's a good location for amenities. In pretty good shape.
0:34:30 > 0:34:35Not that much to do. Would make a cracking first-time buy.
0:34:35 > 0:34:40'Bearing in mind that guide price of £65,000, what sort of returns could there be here?'
0:34:40 > 0:34:46I think once renovated the property could achieve as much as £110,000.
0:34:46 > 0:34:49'Would it be attractive as a buy to let?'
0:34:49 > 0:34:55In the current climate, there's a huge demand for rental properties, this area in particular.
0:34:55 > 0:35:00I would expect the property to rent, again once renovated, for maybe £500 per calendar month.
0:35:00 > 0:35:08So not without its potential issues, this one, particularly noise from the immediate environment.
0:35:08 > 0:35:12But this is a property that absolutely oozes character
0:35:12 > 0:35:16and I'm sure somebody fell in love with it under the hammer.
0:35:21 > 0:35:27Lot number 51. £65,000 is where I want to start. Do we have a bid of 65,000?
0:35:27 > 0:35:29Thank you. 65 bid.
0:35:29 > 0:35:32I have the one bid of 65,000. Do I have 67?
0:35:32 > 0:35:3467 bid. 69?
0:35:34 > 0:35:3769 bid. 71?
0:35:37 > 0:35:3971 bid. 73?
0:35:39 > 0:35:4373 bid. 75? No?
0:35:43 > 0:35:46We're at £73,000. 75 anywhere else?
0:35:46 > 0:35:51I'll take one if it will help. Do I have 74? 74,000 bid.
0:35:51 > 0:35:54I need 75 anywhere. 75,000?
0:35:54 > 0:35:58I'll take 500 if it will help.500 bid. 74 and a half. I'll take 500.
0:35:58 > 0:36:0375? No? I'm here and I want to sell at 74 and a half.
0:36:03 > 0:36:08Last chance at 75. Going once at 74 and a half. I'll take 500 from either of you.
0:36:08 > 0:36:12You keep looking at each other. She wants it. Look at her eyes.
0:36:12 > 0:36:1575 bid, 75 bid.
0:36:15 > 0:36:20I'll take 500. I'm going to sell. Selling it once at £75,000.
0:36:20 > 0:36:23For the second time at £75,000.
0:36:23 > 0:36:25Sold to the lady sitting down.
0:36:25 > 0:36:30'Those successful bidders who secured the lot for £75,000
0:36:30 > 0:36:36'were father and daughter Len and Karen. Karen works as an optical consultant
0:36:36 > 0:36:42'while dad Len is an ex-fireman. He's now self-employed and teaches Health and Safety courses.
0:36:42 > 0:36:45'I met them both to find out their plans.'
0:36:45 > 0:36:49- Great to meet you both. Congratulations.- Thank you.
0:36:49 > 0:36:56- Tell me why you wanted this place. - I'd seen it a few times and fell in love with the character of it.
0:36:56 > 0:37:01- Great. Is it for you, then?- Yeah. My first home.- Really? Fantastic.
0:37:01 > 0:37:06- At what point were you drafted in, Dad?- Well, I came to look at it in the first instance.
0:37:06 > 0:37:12And then we came round with a friend of ours, who basically said, "Go for it."
0:37:12 > 0:37:17- We put an offer in at that time, which was refused.- Right.
0:37:17 > 0:37:22- That's how we ended up at the auction.- Was your offer more?
0:37:22 > 0:37:28- Er, the offer was on the head, really.- Exactly the same?- Yeah. - So you got it for what you offered?
0:37:28 > 0:37:31- Yeah.- Oh, great! How was the auction?
0:37:31 > 0:37:38Nerve-racking. It was my first time, so it was a new experience for both of us, I think.
0:37:38 > 0:37:44- We actually went to see how much it was going to go for.- Really? - No intention of buying it.
0:37:44 > 0:37:47Really?! No intention?
0:37:47 > 0:37:51We thought it would go to Karen's budget and then way over that.
0:37:51 > 0:37:55- Right.- So we bid up to that and it stopped.- Yeah.
0:37:55 > 0:38:01So I found myself in the position that I was a bidder. I expected to walk away with the experience,
0:38:01 > 0:38:06- but I came away with a house. - 'For a first-time auction buyer,
0:38:06 > 0:38:10'optical consultant Karen didn't make a spectacle of herself.'
0:38:10 > 0:38:15# I can see clearly now the rain has gone... #
0:38:15 > 0:38:21'I reckon she's got 20/20 vision when it comes to spotting the charm of this place,
0:38:21 > 0:38:26- 'but that wasn't all that attracted her.'- Well, it was the character,
0:38:26 > 0:38:28the location for me for work,
0:38:28 > 0:38:34- being close to family. It was all right in the centre for me.- Ah, brilliant.
0:38:34 > 0:38:41I'm very happy with the house itself, the history of the house, the structure of the house.
0:38:41 > 0:38:47I wasn't too keen on the location with the garage next door, but it could be very handy.
0:38:47 > 0:38:50So tell me what you're going to do.
0:38:50 > 0:38:54My main concern is the issues with the roof.
0:38:54 > 0:38:58- We'll get that seen to. - Which particular issues?
0:38:58 > 0:39:05There's ridge tiles that are loose due to issues from the property next door having a fire last year.
0:39:05 > 0:39:09- Right. - And just general maintenance to it.
0:39:09 > 0:39:14And then securing the property. Having windows and new doors put in.
0:39:14 > 0:39:19The major one is the damp. We know we have damp. It's a matter of getting professionals in
0:39:19 > 0:39:24- to get it sorted.- Right.- And then the windows and security side.
0:39:24 > 0:39:29We can only do it in stages, so it's not all going to be done tomorrow.
0:39:29 > 0:39:35'Karen is understandably eager to move into her first home,
0:39:35 > 0:39:39'but she's wisely given herself 3½ months to get those jobs done.
0:39:39 > 0:39:44'She also sensibly plans to leave the kitchen and bathroom as they are.
0:39:44 > 0:39:50'That should save on refurbishment costs and that's where dad Len comes in handy.'
0:39:50 > 0:39:52What will your involvement be, Len?
0:39:52 > 0:39:57Probably I'll be drafted in to do the decoration et cetera.
0:39:57 > 0:40:00- I don't really know at the moment. - Bank of Dad!
0:40:00 > 0:40:03That's a very important role!
0:40:03 > 0:40:06- Yeah.- So you've helped out with the finance?
0:40:06 > 0:40:11- No.- Oh, OK.- She's raised her own deposit, sorted the mortgage out.
0:40:11 > 0:40:17She's got a small budget to do it, so hopefully we'll do it within that.
0:40:17 > 0:40:21- And if not... - That's when he comes in!
0:40:21 > 0:40:24# If you want it Go out and get it
0:40:24 > 0:40:29# You've got to do it yourself Do it yourself... #
0:40:29 > 0:40:34- So what's the budget?- The budget - I've got five grand to spend.
0:40:34 > 0:40:40I'm hoping to get everything done within that budget by using local amenities, really.
0:40:40 > 0:40:45- We've got people close by.- Do you think that's a realistic budget?
0:40:45 > 0:40:48From the quotes we've had so far, yes.
0:40:48 > 0:40:52We've been very surprised with some of the quotes.
0:40:52 > 0:40:57Hopefully, within that £5,000 we'll have it liveable or more than liveable.
0:40:57 > 0:41:02- And it'll be your first place. - It will.- Fantastic.
0:41:02 > 0:41:04Congratulations. And good luck.
0:41:04 > 0:41:08I look forward to seeing how you sort it out.
0:41:08 > 0:41:13So a first auction and a first property for Karen.
0:41:13 > 0:41:18I can't wait to see how she gets on turning this house into her home.
0:41:18 > 0:41:24With the help of Dad, of course. Find out how she gets on later in the show.
0:41:25 > 0:41:31- It's time now to pay a visit to our plucky developers.- Will they welcome us back with tales of success
0:41:31 > 0:41:35- and soaring profits? Or will things have turned sour?- Let's find out.
0:41:35 > 0:41:41'Back now to the Kent town of River, near Dover, where earlier we met Dan.
0:41:41 > 0:41:48'He bought this house with his sister Robin. They jointly paid £170,000 for this detached house
0:41:48 > 0:41:52'sitting on a large plot as their first investment.
0:41:52 > 0:41:58'When they discovered the full potential there, they spotted a great opportunity.'
0:41:58 > 0:42:04I want to extend this house towards the rear, but there's no reason with the room we've got
0:42:04 > 0:42:11that we couldn't almost mimic this property once we've finalised the ideas
0:42:11 > 0:42:17- and do the same next door. - So you want to do both options? - I would love to do both options.
0:42:17 > 0:42:21- Extend this, take it as far as you can, then build another next door? - Yes.
0:42:21 > 0:42:27'There was the small matter of obtaining planning permission, so they planned to refurbish first
0:42:27 > 0:42:33'and then, providing planning permission was granted, would build the new house.
0:42:33 > 0:42:39'We've come back 14 months on to join Dan and find out if they've maximised that opportunity.
0:42:39 > 0:42:43'Oh, no! The house is shrouded in scaffolding.
0:42:43 > 0:42:46'But what about the new build?
0:42:46 > 0:42:50'Nope. Nothing there either. So what has been done?
0:42:52 > 0:42:56'Well, thankfully, at least the rear extension has started.'
0:42:56 > 0:43:03We're here in the extension. The first thing we wanted to do was take the darkness out of the property.
0:43:03 > 0:43:08We introduced the bi-folding doors that open right out so you can use your patio
0:43:08 > 0:43:13as part of your living area during the summer months.
0:43:13 > 0:43:18We introduced the roof lanterns as well to really draw the natural light in.
0:43:18 > 0:43:22It's almost creating an orangery inside the house.
0:43:22 > 0:43:28'The ground floor layout has totally changed and been completely opened up.
0:43:28 > 0:43:34'Apart from the kitchen/dining area, there's an office space to the right and a separate utility room.
0:43:37 > 0:43:43'Upstairs, the three bedrooms have been refurbished. The bathroom's still to be fitted.
0:43:43 > 0:43:47'But if you want a real treat, look at this hand-made oak staircase.
0:43:47 > 0:43:49'Gorgeous!
0:43:49 > 0:43:54'And the lovely oak floors, solid wood doors and the attention to detail
0:43:54 > 0:43:59'all hint at how fabulous this house will be when it's finally finished.
0:43:59 > 0:44:03'What about the loft conversion? Well, Dan got planning permission
0:44:03 > 0:44:08'and has made this a four-bedroom house with an en suite.
0:44:08 > 0:44:15'And from the top to the bottom there's even more accommodation in the former cellar.'
0:44:15 > 0:44:23We turned it into what we call the snug. It's a nice little living area. We felt it added value.
0:44:24 > 0:44:30'So it's a work in progress albeit slow. Dan's been handling it mostly on his own
0:44:30 > 0:44:34'as his sister has a new job and is working some distance away.
0:44:34 > 0:44:38'He's also been finishing his degree and working full-time.
0:44:38 > 0:44:46'Phew! So as if he didn't have enough on his plate, what about the plans for a house on that plot?'
0:44:46 > 0:44:51Unfortunately, we've had some issues with the local planning authority
0:44:51 > 0:44:56and they refused planning. We're going through the appeals process.
0:44:56 > 0:45:03We're really confident that we'll win because the street is crying out for a property to finish the lane off.
0:45:04 > 0:45:12As you can see, we've nearly finished the original property, but now we intend to put a new-build on
0:45:12 > 0:45:15that's exactly the same. It's going to be a twin.
0:45:15 > 0:45:21So a four-bedroomed house with some big car ports out the back.
0:45:21 > 0:45:26'Dan feels the plans would be a real asset to the street
0:45:26 > 0:45:32'and he'd like to keep to the style the house had before. This was an ambitious project
0:45:32 > 0:45:40'and has dragged on past their original deadline. Combined with going for a superior finish,
0:45:40 > 0:45:45'how have all these factors impacted on their original 35 grand budget?'
0:45:45 > 0:45:50We're currently on about £140,000 that we've spent so far,
0:45:50 > 0:45:57but I've easily got another 30K to spend, I believe, to finish this property.
0:45:57 > 0:46:01'Wow. That sure is a lot of budget, but don't forget
0:46:01 > 0:46:05'they originally set out to just refurbish this house.
0:46:05 > 0:46:11'They've taken it to a whole new level and, of course, there's still the new build to do.
0:46:11 > 0:46:16'If they do finally get planning permission, how much will it cost?'
0:46:16 > 0:46:21The new property, I hope to complete all works within £200,000.
0:46:21 > 0:46:25'The numbers are really beginning to mushroom.
0:46:25 > 0:46:33'Dan and Robin paid £170,000 at auction and the final renovations will being their total so far
0:46:33 > 0:46:36'to £340,000.
0:46:36 > 0:46:41'Add £200,000 for the build costs of another four-bedroom house
0:46:41 > 0:46:44'and that'll be a grand total of £540,000.
0:46:44 > 0:46:49'Along way from that original £35,000 renovation budget,
0:46:49 > 0:46:56'so will their first venture into property pay off? We asked two local estate agents.'
0:46:58 > 0:47:01'I think the layout and accommodation works really well.'
0:47:01 > 0:47:06Four good bedrooms, two bathrooms, really nice open-plan living space.
0:47:06 > 0:47:12It's a nice big house, four-bedroom family property. You've got a very large lounge,
0:47:12 > 0:47:17opening up on double patio doors. I think it's a really nice house,
0:47:17 > 0:47:19with a quality home.
0:47:19 > 0:47:26'What do the experts think this place could be worth, if the new build wasn't built?
0:47:26 > 0:47:30'More than the £340,000 invested so far?'
0:47:30 > 0:47:35At completion, I think this property will sell for about £400,000
0:47:35 > 0:47:39and could be marketed at, say, £420,000.
0:47:39 > 0:47:44If this property was put on the market with no house next door,
0:47:44 > 0:47:46I'd put a value of about £450,000.
0:47:47 > 0:47:55'Those valuations would produce a profit of £60,000-£110,000 before taxes and expenses.'
0:47:55 > 0:48:00That's sort of in the region that we were expecting, really,
0:48:00 > 0:48:07but we'd be expecting, once it's finished with the car ports, to get around £400,000-£420,000.
0:48:07 > 0:48:11'That value is based on the huge plot the house sits on.
0:48:11 > 0:48:17'What impact would there be on the value of this house if the new property is built?'
0:48:17 > 0:48:22If a new house is built next door, it will slightly diminish value here.
0:48:22 > 0:48:26Maybe you'd need to pitch the price at just beneath £400,000.
0:48:26 > 0:48:30Because of the closeness, the proximity of the house next door,
0:48:30 > 0:48:36I would say it would reduce the value of this house to £375,000.
0:48:36 > 0:48:39'What does Dan think of those prices?'
0:48:39 > 0:48:43That would be the absolute minimum that we'd be happy with.
0:48:43 > 0:48:47If we get either of those prices, we'll be all right.
0:48:47 > 0:48:52'If both houses were to sell for around £375,000,
0:48:52 > 0:48:56'that would make a total of £750,000.
0:48:56 > 0:49:00'Dan reckons the final project costs will be £540,000,
0:49:00 > 0:49:06'which means a profit of £210,000, minus the usual taxes and expenses.
0:49:06 > 0:49:10'Is he glad they went beyond a simple refurbishment
0:49:10 > 0:49:16'and is he still pursuing the potential to build a new house in its huge garden?'
0:49:16 > 0:49:21Obviously, it's a lot bigger than we set out.
0:49:21 > 0:49:24But it is essential that we proceed with the new build
0:49:24 > 0:49:29because a lot of the profit is tied away in there.
0:49:29 > 0:49:34I think it's important for the street scene to fill this space between the two houses.
0:49:34 > 0:49:37They'll be two very nice houses.
0:49:41 > 0:49:47'We now return to Ormesby near Middlesbrough and this two-bed terraced house.
0:49:47 > 0:49:52'It was bought by Karen, an optical consultant, who paid £75,000 for it.
0:49:52 > 0:49:58'There were minor problems, but as the general condition was good, those couldn't stop Karen
0:49:58 > 0:50:05'falling in love with it. However, she'd gone to the auction with father Len not actually expecting
0:50:05 > 0:50:10- 'to buy it.'- We actually went to see how much it was going to go for.
0:50:10 > 0:50:13- Really?- We had no intention of buying it.- Really?!
0:50:13 > 0:50:20- What do you mean? - We thought it would go to Karen's budget and then way over that,
0:50:20 > 0:50:25- but it stopped.- Yeah. - So I found myself as the bidder.
0:50:25 > 0:50:29I expected just the experience, but I came away with a house!
0:50:29 > 0:50:35'And that's what Karen had lots of. After a bit of a spruce up,
0:50:35 > 0:50:39'she hoped it would take no more than £5,000 and 3 months to do it.
0:50:39 > 0:50:44'Then she planned to move in and make it her very first home.
0:50:44 > 0:50:50'Five months later, we're back. The exterior is now more inviting with a new front door,
0:50:50 > 0:50:55'new windows and a splash of paint. But is the interior as welcoming?
0:50:56 > 0:51:00'Well, Karen has really given us a sight for sore eyes.
0:51:00 > 0:51:08'The living room now looks very cosy with the soft tones and furnishings blending in with the fireplace.
0:51:08 > 0:51:14'The dining room also looks good, redecorated and with new flooring laid.
0:51:15 > 0:51:21'While the kitchen has not been replaced, it's been made much more homely
0:51:21 > 0:51:24'with lovely little personal touches.
0:51:24 > 0:51:31'Now that's a surprise - a new bathroom suite has been installed, which wasn't in Karen's plans.'
0:51:32 > 0:51:36This was one room we weren't going to do a lot in,
0:51:36 > 0:51:42but I decided as it was going to be my home, I wanted it to be my little haven.
0:51:44 > 0:51:49We've had to put a false wall in to straighten up the bathroom.
0:51:49 > 0:51:54I put a new bathroom suite in and my first attempt at tiling.
0:51:54 > 0:51:57There were a few problems, but it's turned out well
0:51:57 > 0:52:02and there was a little issue with damp on the window wall
0:52:02 > 0:52:05which took a little bit of drying out, but we got there.
0:52:07 > 0:52:11'And as for the bedrooms, both are redecorated and furnished
0:52:11 > 0:52:18'with a decor contrasting well with the furnishings. And Karen's been busy outside, too.
0:52:18 > 0:52:24'The huge rear wall has had a fresh coat of paint. Gutters and fascias have been replaced
0:52:24 > 0:52:30'and the roof tiles re-laid. It all gives the house a brighter, more solid appearance.
0:52:30 > 0:52:36'That messy garden has been tidied up, too, but it's the windows that finish the place off perfectly.'
0:52:36 > 0:52:42We initially thought we had to have planning permission as it's a conservation area,
0:52:42 > 0:52:47but then we got word to say it was permitted development.
0:52:47 > 0:52:55- So all the windows are in keeping with the rest of the area. - It's soundproofed the property.
0:52:55 > 0:52:58And just the look - it's a really nice finish.
0:52:58 > 0:53:05'It's a good move, keeping the noise out from that busy road, plus they have a good-looking home.'
0:53:05 > 0:53:07# It's so quiet in here
0:53:07 > 0:53:10# So peaceful in here
0:53:11 > 0:53:13# So quiet in here
0:53:13 > 0:53:16# So peaceful in here... #
0:53:18 > 0:53:23'But the renovation involved more work than they anticipated
0:53:23 > 0:53:28'with several rooms needing replastering and rewiring.
0:53:28 > 0:53:33'Tradesmen were called in for those jobs, but Karen, Len and his wife got stuck in
0:53:33 > 0:53:35'in the evenings and at weekends.
0:53:35 > 0:53:39'No doubt everything was done in perfect harmony?'
0:53:39 > 0:53:45There's been a few disagreements on little things. At the end of the day, it's my first home,
0:53:45 > 0:53:53so it's completely new to me. Some things definitely I've got to agree with him with. Some I don't!
0:53:53 > 0:53:59'There may have been disagreements, but Len thinks the final finish is one for Karen to be proud of,
0:53:59 > 0:54:06- 'though there's been one unexpected side effect.'- I'm going to have to start on the family home after this.
0:54:06 > 0:54:13The standard here, I'm going to be under pressure to improve things at home.
0:54:13 > 0:54:17# Hey, hey, hey, hey What you doing to me?
0:54:19 > 0:54:24# Hey, hey, hey Look what you've done... #
0:54:24 > 0:54:29'Karen may have set the gold standard for her parents to follow,
0:54:29 > 0:54:36'but did she achieve that finish on her £5,000 budget or did the Bank of Mum and Dad have to step in?'
0:54:36 > 0:54:42We did go over. We knew we would, but she spent her money and then some of mine as well.
0:54:42 > 0:54:44Not too bad.
0:54:44 > 0:54:49We have gone slightly over budget, coming in at around £9,000.
0:54:49 > 0:54:53But it's to my standard. It's how I want it as a home.
0:54:53 > 0:55:00'Has putting such high standards in meant that the top up from Dad's money has been well spent?
0:55:00 > 0:55:04'Karen purchased the cottage for £75,000. Add that to her £9,000
0:55:04 > 0:55:07'and she's invested £84,000.
0:55:09 > 0:55:15'Given the difficulties with the location, are the improvements in her favour?
0:55:15 > 0:55:19'We asked two local estate agents. First, the one who saw it before.'
0:55:19 > 0:55:26I think the owners have done a fantastic job. It feels really modern. A really quality job.
0:55:26 > 0:55:31It's done to a nice high standard. Yeah. uPVC double glazing,
0:55:31 > 0:55:33quite impressed with it.
0:55:33 > 0:55:40'But should Karen's circumstances change, what sort of returns could the house achieve if sold or let?
0:55:40 > 0:55:46'Remember, she has spent £84,000. What would the resale value be?'
0:55:46 > 0:55:52In the current market, I would expect this property to achieve at least £105,000, maybe even £110,000.
0:55:52 > 0:55:57I'd put it on the market at 105 and expect to achieve £100,000.
0:55:57 > 0:56:04'Those two valuations could give Karen a profit of £16,000-£21,000, minus tax and costs.'
0:56:04 > 0:56:12I think that's really good. For the work I've done, I think that's a fair valuation.
0:56:12 > 0:56:19'The estate agents also reckon that there's a rental return of around £525 per calendar month,
0:56:19 > 0:56:24'giving Karen a potential yearly yield of 7½%.
0:56:28 > 0:56:33'Getting those sort of returns for the house is something for the future
0:56:33 > 0:56:39'and may also mean a trip to another auction with Len, perhaps to find her next home.
0:56:39 > 0:56:45'But for now the hard work is done and Karen's already planning her next move.'
0:56:45 > 0:56:51I'm looking forward to being able to put my feet up and just relax and enjoy the house.
0:56:53 > 0:56:57We hope you've enjoyed today's tales from the auction rooms.
0:56:57 > 0:57:01- We look forward to seeing you next time.- See you then.- Goodbye.
0:57:21 > 0:57:24Subtitles by Red Bee Media Ltd