0:00:00 > 0:00:04Hello! Now, if you want to buy any kind of property,
0:00:04 > 0:00:07then the auction room could be the place for you.
0:00:07 > 0:00:09Yeah. You must make sure you do your research
0:00:09 > 0:00:11and get your bidding strategy right.
0:00:11 > 0:00:13So when the hammer falls, you can be victorious!
0:00:13 > 0:00:16So let's find out who did their homework
0:00:16 > 0:00:18before they put their hand up to bid.
0:00:44 > 0:00:47Well, people buy all sorts of things at the auction,
0:00:47 > 0:00:50from a home to an investment property,
0:00:50 > 0:00:52to a garage to store their belongings!
0:00:52 > 0:00:55And if spent wisely, your money can go a very long way.
0:00:55 > 0:00:59So what did people decide to splash their cash on on today's show?
0:01:00 > 0:01:03I'm in London, and as I'm sure we can all agree,
0:01:03 > 0:01:06taste and design is really black and white!
0:01:06 > 0:01:09I'm not sure whether I like it or not!
0:01:10 > 0:01:12In Pontypool, this three-storey property
0:01:12 > 0:01:15certainly has its fair share of ups and downs!
0:01:15 > 0:01:19It does feel like the whole place is mostly made up of stairs!
0:01:20 > 0:01:23And the colour scheme in this bungalow in Carlisle
0:01:23 > 0:01:25makes it more fun house than dream home!
0:01:26 > 0:01:30Somebody had real fun with the old paint colour choices!
0:01:32 > 0:01:34All these properties have been sold at auction,
0:01:34 > 0:01:36and we'll find out who bought them and what they paid for them
0:01:36 > 0:01:38when they went under the hammer.
0:01:38 > 0:01:40Selling away!
0:01:42 > 0:01:45This is Sydenham in south-east London.
0:01:45 > 0:01:50It sits happily between more fashionable Dulwich and popular Crystal Palace to the south.
0:01:50 > 0:01:53But Sydenham has charms of its own.
0:01:53 > 0:01:55Lovely green open spaces,
0:01:55 > 0:01:59a train station that'll get you into Victoria in 14 minutes
0:01:59 > 0:02:03and for London, some really rather cheap property.
0:02:05 > 0:02:08A trip to Sydenham almost feels like I've swapped the city
0:02:08 > 0:02:10for a day in the countryside.
0:02:10 > 0:02:15# When the leaves have fallen
0:02:15 > 0:02:19# From the last lime tree... #
0:02:20 > 0:02:22Well, almost.
0:02:22 > 0:02:26But there's a property for us to see, so I'm leaving all this behind.
0:02:28 > 0:02:31At the moment, the average price for a terraced house in London
0:02:31 > 0:02:36is a staggering 526,000.
0:02:36 > 0:02:38House prices vary hugely,
0:02:38 > 0:02:40depending on where you are in the capital.
0:02:40 > 0:02:45But you would struggle to find a family home for under half a million quid in many areas.
0:02:45 > 0:02:47Which is why I'm especially excited
0:02:47 > 0:02:49about this three-bedroomed house.
0:02:49 > 0:02:53It had a guide price of £220,000.
0:02:53 > 0:02:56This '60s house is not so big on kerb appeal
0:02:56 > 0:03:00but at that price, it is big on purse appeal!
0:03:00 > 0:03:04And this is what you call open plan!
0:03:04 > 0:03:07Wow! An incredibly big space.
0:03:07 > 0:03:09I'm not so sure about these stairs.
0:03:09 > 0:03:13Maybe something a little more modern? Glass would look good in here.
0:03:13 > 0:03:18You could really turn this place into a spectacular minimalist zone.
0:03:18 > 0:03:20It would really work in a house like this.
0:03:20 > 0:03:23And it's definitely big enough for a family.
0:03:23 > 0:03:26Now, the kitchen. I'm not sure whether I like it or not.
0:03:26 > 0:03:28I think I would have to change it.
0:03:28 > 0:03:31Could be a little bit '90s.
0:03:31 > 0:03:33All this a bit old-fashioned, a bit dark.
0:03:33 > 0:03:36So you could exchange it for something more light reflective.
0:03:36 > 0:03:39But a good working area, and what I do love
0:03:39 > 0:03:43is that you've got the garden just there and there's access right here.
0:03:44 > 0:03:46This is what you call a courtyard garden.
0:03:46 > 0:03:50But for London, you should be grateful for any outside space.
0:03:50 > 0:03:52And you've certainly got enough here
0:03:52 > 0:03:53for the kids to have a little play.
0:03:53 > 0:03:56But the thing that really excites me is this!
0:03:56 > 0:03:59It's not a garage, you've got a double garage!
0:03:59 > 0:04:02It's plenty big enough to put your car inside
0:04:02 > 0:04:06because so many garages today, you can't get a modern vehicle in it.
0:04:06 > 0:04:11But I'd be looking at converting this, turning it into something great like a kids' playroom
0:04:11 > 0:04:14a home office, a teenagers' den.
0:04:14 > 0:04:16It's such a phenomenal space
0:04:16 > 0:04:18that you could do so much with.
0:04:18 > 0:04:21I really see this adding a lot of value to that house.
0:04:21 > 0:04:26# You make me feel like I'm living a
0:04:26 > 0:04:28# Teenage dream... #
0:04:29 > 0:04:33Having this space to hang out sure would be a teenage dream!
0:04:33 > 0:04:35You could convert half of it,
0:04:35 > 0:04:37leaving the other side as a garage.
0:04:37 > 0:04:40London parking is not easy to come by
0:04:40 > 0:04:42and this garage has rear access.
0:04:42 > 0:04:46Ideal for privacy and avoiding that busy road out front.
0:04:51 > 0:04:56Back inside the property, and upstairs has three bedrooms on offer.
0:04:56 > 0:04:59This small box room at the front
0:04:59 > 0:05:01may be better used as a study.
0:05:01 > 0:05:04Next to that, a large double bedroom
0:05:04 > 0:05:06then at the back of the property,
0:05:06 > 0:05:09another large double and a family bathroom.
0:05:09 > 0:05:14This is in addition to the toilet which is off the hall as you enter the property.
0:05:14 > 0:05:18All this for that guide price of 220,000.
0:05:20 > 0:05:23The whole place could do with updating throughout
0:05:23 > 0:05:25but with no major work required,
0:05:25 > 0:05:27you could live in it whilst this is being done.
0:05:27 > 0:05:29So that's bound to add to its appeal.
0:05:34 > 0:05:36But what would a local estate agent think?
0:05:36 > 0:05:40We invited one along to find out.
0:05:43 > 0:05:45First impressions of this property are great.
0:05:45 > 0:05:50It's very rare that you get modern properties nowadays with greenery around and grass and trees.
0:05:50 > 0:05:51But Sydenham is like that.
0:05:51 > 0:05:54It softens the actual harshness of the property.
0:05:54 > 0:05:56When you come into the property, it's very modern living.
0:05:56 > 0:06:00It's open plan. That's how it was built, which is great.
0:06:00 > 0:06:04So, once renovated, what price could it fetch if sold on?
0:06:05 > 0:06:09If it was done up, I think it would achieve somewhere between 330 and 350.
0:06:09 > 0:06:12How about the rental market?
0:06:12 > 0:06:15Would it be a financially viable option for this particular pad?
0:06:15 > 0:06:19When this is done up, rental-wise, it's a very good rental.
0:06:19 > 0:06:22It would achieve £1,400 per calendar month with no problem whatsoever.
0:06:22 > 0:06:23The market is very buoyant.
0:06:25 > 0:06:30This is a great value family home in a nice area, ever improving.
0:06:30 > 0:06:33Let's find out who went for it at the auction.
0:06:35 > 0:06:37Lot 63.
0:06:37 > 0:06:38Three-bed mid-terraced house.
0:06:40 > 0:06:43Obviously popular location.
0:06:43 > 0:06:47What are your bids on this? 250?
0:06:47 > 0:06:50250 with you. 255.
0:06:50 > 0:06:52255 with you.
0:06:52 > 0:06:53260.
0:06:53 > 0:06:54265.
0:06:55 > 0:06:57270?
0:06:57 > 0:06:58266?
0:06:58 > 0:07:02265. Looking for 266 elsewhere. Another thousand.
0:07:04 > 0:07:06If not, 265.
0:07:06 > 0:07:08First time. Second time.
0:07:09 > 0:07:11Third and last time. Have you all done?
0:07:14 > 0:07:16Sold 265.
0:07:16 > 0:07:21So the hammer fell on the bid of 265,000
0:07:21 > 0:07:23made by Vincenzo.
0:07:23 > 0:07:27He hails from Italy, but has been living in London for the past 15 years.
0:07:28 > 0:07:31In that time, he's bought nine auction properties,
0:07:31 > 0:07:33doing them up and selling them on.
0:07:33 > 0:07:37Today, he's brought companion Thomas along
0:07:37 > 0:07:39for a good sniff around his latest purchase.
0:07:43 > 0:07:46Vincenzo, congratulations! Nice to meet you!
0:07:46 > 0:07:48Here you have it. You've bought yourself a house at auction.
0:07:48 > 0:07:53Yes, I did. Did you really want this one, on auction day?
0:07:53 > 0:07:55No really. No? No.
0:07:55 > 0:07:57You had your eye on something else?
0:07:57 > 0:08:00Yes, I do the shortlist of several properties
0:08:00 > 0:08:07and now I go there, I view the property, all of them,
0:08:07 > 0:08:10then - this is the first step -
0:08:10 > 0:08:13and I take all the shots with my mobile phone,
0:08:13 > 0:08:18go home and analyse if it's good or not for myself.
0:08:18 > 0:08:21And eventually I decide which one to go for.
0:08:21 > 0:08:24When I decide which one to go for,
0:08:24 > 0:08:26I just do starting the research.
0:08:26 > 0:08:28How much it costs, how much I need to spend.
0:08:28 > 0:08:30How much it will sell.
0:08:30 > 0:08:33What's on your checklist? What else do you look for?
0:08:33 > 0:08:37First of all, what I look for is the station by.
0:08:37 > 0:08:41Good area, which is in the border with the good area.
0:08:41 > 0:08:44This property is just on the border with Dulwich Village.
0:08:44 > 0:08:49So it's the station three minutes away, although it's up the hill
0:08:49 > 0:08:50and it's very hard to get up!
0:08:50 > 0:08:53But it's five minutes away. If you are busy to go to work
0:08:53 > 0:08:55it takes five minutes to the station,
0:08:55 > 0:08:5815 minutes to London Victoria station
0:08:58 > 0:09:01and to Brixton just two minutes.
0:09:01 > 0:09:03It's the right property for the professional people.
0:09:03 > 0:09:06I like Vincenzo's approach.
0:09:06 > 0:09:08He's methodical and does his homework.
0:09:08 > 0:09:11Taking photographs is a great idea.
0:09:11 > 0:09:13How many times have you looked at a property
0:09:13 > 0:09:16but couldn't recall details clearly later?
0:09:16 > 0:09:19Photos also add to the vital reality check
0:09:19 > 0:09:22as you tend to only remember the good bits.
0:09:22 > 0:09:26As we know, the key to successful developing is thorough research.
0:09:27 > 0:09:30It sounds to me like you are a man who does thorough research.
0:09:30 > 0:09:35You know what you're doing. You've downloaded the legal pack. Yes.
0:09:35 > 0:09:39You know how much you want to spend. This time I think I've overspent.
0:09:39 > 0:09:41OK. So there you go.
0:09:41 > 0:09:44On your checklist, I bet you didn't think you were going to overspend on the day.
0:09:44 > 0:09:46So how much did you overspend, for this?
0:09:46 > 0:09:50I think I overspent about 15 grand, to be personal.
0:09:50 > 0:09:53So you didn't want to spend £15,000 extra.
0:09:53 > 0:09:56No, but taking all into consideration,
0:09:56 > 0:09:57all the aspects of the property,
0:09:57 > 0:10:02I think that it's still good for what I want to do.
0:10:02 > 0:10:04It's still giving me a return,
0:10:04 > 0:10:07even if I don't want to do anything with the property, just leave it as it is.
0:10:07 > 0:10:10So what are you going to do to the property? Nothing?
0:10:10 > 0:10:13There are three steps which I would like to do with this property.
0:10:13 > 0:10:16The first step is just to try the auction.
0:10:16 > 0:10:22If it works, just to put it back in auction and it will give me around 15 to £20,000 profit.
0:10:22 > 0:10:25The second step which I would like to do
0:10:25 > 0:10:27is just to put with an estate agent
0:10:27 > 0:10:30and to get around £310,000 if I can.
0:10:30 > 0:10:34The last step, the one I like, the one that gives me more pleasure,
0:10:34 > 0:10:37because I see the property transformed,
0:10:37 > 0:10:39is to do a nice job to the property
0:10:39 > 0:10:41and get the maximum price.
0:10:41 > 0:10:45Wow! So whoa! You don't even know what you're going to do.
0:10:45 > 0:10:47So number one, you're going to try and flip it,
0:10:47 > 0:10:49put it back in the auction at a profit.
0:10:49 > 0:10:52That's why this is my first step.
0:10:52 > 0:10:57With my first steps, I need to make sure the property can be flipped without doing any work on it.
0:10:57 > 0:11:01So you think there's value in this as it is? As it is, I think, yes.
0:11:01 > 0:11:04I'm all for having a Plan B
0:11:04 > 0:11:08so it can only be a good thing that Vincenzo has three possible plans of attack here.
0:11:10 > 0:11:14If he does go for his and my preferred option
0:11:14 > 0:11:17of giving this place a top-to-toe cosmetic refurbishment,
0:11:17 > 0:11:21he's set himself a maximum budget of 20,000
0:11:21 > 0:11:23and a timescale of three months.
0:11:23 > 0:11:26And speaking of timings...
0:11:27 > 0:11:32How long have you been doing this for? I've been doing this since 2005,
0:11:32 > 0:11:34when I bought my first studio.
0:11:34 > 0:11:37I sold it after a year. It was my own property
0:11:37 > 0:11:40and I bought a second one and made more profit then.
0:11:40 > 0:11:44And I kept in Maida Vale, Warwick Avenue, St John's Wood.
0:11:44 > 0:11:50Then I started... There was a shortage of opportunity in that area
0:11:50 > 0:11:54so I started moving around and eventually I'm here after 10 years.
0:11:54 > 0:11:56Vincenzo, good luck with this.
0:11:56 > 0:11:59It's going to be so interesting seeing which option you take. Good luck.
0:11:59 > 0:12:02Thank you, Lucy. It's been a pleasure to meet a beautiful girl like you!
0:12:02 > 0:12:05Thank you! And a professional. Thank you!
0:12:07 > 0:12:10Well, I hope Vincenzo goes for option three.
0:12:10 > 0:12:12I would love to see this place transformed.
0:12:12 > 0:12:17Join me later in the show to find out what on earth happens!
0:12:22 > 0:12:26Beautiful, isn't it? Today I'm in Pontypool in South Wales.
0:12:26 > 0:12:31And here is Pontypool folly.
0:12:31 > 0:12:34It was a tower built around 1770 originally
0:12:34 > 0:12:36but it was recently restored,
0:12:36 > 0:12:39partly due to a campaign by locals
0:12:39 > 0:12:42who used bricks from the local primary school to rebuild it.
0:12:52 > 0:12:54The views are simply stunning
0:12:54 > 0:12:58and Pontypool will soon benefit from a £10 million investment
0:12:58 > 0:13:02to regenerate the town centre and conserve the local heritage.
0:13:02 > 0:13:04That means the auction lot I'm here to see
0:13:04 > 0:13:06could be more lolly than folly.
0:13:06 > 0:13:08And here it is.
0:13:08 > 0:13:12It's a three-storey property. A commercial unit on the ground floor
0:13:12 > 0:13:16with private access at the side to a three-bed maisonette flat
0:13:16 > 0:13:20which is spread over the lower ground, first and second floors.
0:13:23 > 0:13:25It's actually a really interesting opportunity.
0:13:25 > 0:13:28I like this kind of thing as it's a mixed use development.
0:13:28 > 0:13:32Downstairs a commercial unit, upstairs, two floors of something that could be developed
0:13:32 > 0:13:34into flats or whatever.
0:13:34 > 0:13:37This is the downstairs unit, very well located on the high street.
0:13:37 > 0:13:40It's small, but hey, the guide price 50 grand,
0:13:40 > 0:13:42it's got to be worth a look.
0:13:47 > 0:13:51The ground floor commercial unit is, well, tiny,
0:13:51 > 0:13:54so it will have limited appeal.
0:13:55 > 0:13:58Once inside, there is access to the lower ground floor
0:13:58 > 0:14:02which comprises two box rooms and access to a rear courtyard.
0:14:04 > 0:14:09And from the back, you really get a sense of just how big this auction lot is.
0:14:10 > 0:14:13Be prepared for a lot of stairs!
0:14:14 > 0:14:19It does feel like the whole place is mostly made up of stairs so far.
0:14:19 > 0:14:21But hey, it'll keep you fit!
0:14:21 > 0:14:25On this floor, then, a kitchen area there.
0:14:25 > 0:14:27And through into this room.
0:14:27 > 0:14:29This is a real nice surprise.
0:14:29 > 0:14:32Big windows, lots of light flooding in.
0:14:32 > 0:14:35You are on the side of the main road, so it could be a bit noisy.
0:14:35 > 0:14:37But wow, great space.
0:14:37 > 0:14:41And it was actually used as residential, so a flat or whatever at some point.
0:14:41 > 0:14:44If you wanted to use it for commercial,
0:14:44 > 0:14:46you'd have to apply for change of use,
0:14:46 > 0:14:48but I actually think this is pretty attractive.
0:14:48 > 0:14:51Central heating. That's good.
0:14:51 > 0:14:53Electrics looks like it's reasonably new.
0:14:53 > 0:14:55You know, let's carry on.
0:15:05 > 0:15:06Phew!
0:15:06 > 0:15:08Up yet more stairs.
0:15:08 > 0:15:10I feel like I've had a workout!
0:15:10 > 0:15:13And yes, yet more space.
0:15:13 > 0:15:15Bathroom area there.
0:15:15 > 0:15:19A little room there. Another bedroom or whatever you wanted there.
0:15:19 > 0:15:21And through into a rear room.
0:15:21 > 0:15:23Again, good size. Reasonable condition.
0:15:23 > 0:15:25In terms of a flat,
0:15:25 > 0:15:28this could be pretty spacious with that room downstairs, the kitchen, this up here.
0:15:28 > 0:15:31It's a really nice-sized property.
0:15:33 > 0:15:37And, all in all, for the money, yeah.
0:15:37 > 0:15:39Good news, really.
0:15:41 > 0:15:42Good news, indeed.
0:15:42 > 0:15:45But I wonder if there's more money to be made
0:15:45 > 0:15:47by converting this maisonette
0:15:47 > 0:15:49into two single-bedroom flats.
0:15:49 > 0:15:52With some clever reconfiguration,
0:15:52 > 0:15:54I think there's plenty of space
0:15:54 > 0:15:56and, as it's in the heart of the town centre,
0:15:56 > 0:15:59it's an ideal rental location.
0:15:59 > 0:16:02But there's also bad news.
0:16:02 > 0:16:04What really causes me concern
0:16:04 > 0:16:07is the teeny-tiny commercial unit.
0:16:07 > 0:16:10What practical use could it be put to?
0:16:10 > 0:16:13And there are other considerations, too.
0:16:14 > 0:16:17Firstly, you've got this passageway, and above it,
0:16:17 > 0:16:19you've got the upstairs floors.
0:16:19 > 0:16:21So you've got what they call a flying freehold.
0:16:21 > 0:16:25Your solicitor would have to check that out very carefully before you bought the property.
0:16:25 > 0:16:28Have you got a right of way, a right of way into that door?
0:16:28 > 0:16:31All sorts of things. And then you've got this downstairs unit.
0:16:31 > 0:16:35It's very small. It doesn't have any facilities, doesn't have a toilet, et cetera, et cetera.
0:16:35 > 0:16:39Is that legal? Again, something your solicitor really needs to check out.
0:16:39 > 0:16:44But assuming any potential legal issues do check out OK,
0:16:44 > 0:16:47what does a local estate agent make of the property
0:16:47 > 0:16:50and its £50,000 guide price?
0:16:51 > 0:16:54On this road, it's popular for letting properties.
0:16:54 > 0:16:59If the owner was going to decide to let out the property as flats,
0:16:59 > 0:17:01he could probably rent them quite quickly
0:17:01 > 0:17:04as long as possibly they were two-bed or one-bed.
0:17:04 > 0:17:06If it's a three-bedroomed flat,
0:17:06 > 0:17:08he might have a little bit of difficulty.
0:17:08 > 0:17:13The estate agent thinks the ground floor commercial unit
0:17:13 > 0:17:15might prove tricky to let,
0:17:15 > 0:17:18but it could bring in around £50 per week.
0:17:18 > 0:17:21But how much could this three-bed maisonette let for?
0:17:22 > 0:17:28You could look to achieve 400 to £425 per calendar month in the current climate.
0:17:28 > 0:17:31The only difficulty is that most people would rather rent
0:17:31 > 0:17:34a three-bedroomed house rather than a three-bedroomed flat.
0:17:34 > 0:17:38And if converted into two single-bedroomed flats?
0:17:38 > 0:17:41If you converted it into two flats,
0:17:41 > 0:17:45you could look to achieve 300 to £325 per calendar month.
0:17:45 > 0:17:48You shouldn't have too much trouble in renting those out.
0:17:48 > 0:17:52The estate agent believed that, once renovated,
0:17:52 > 0:17:53the three-bedroomed maisonette
0:17:53 > 0:17:57could achieve a sale value of £75,000.
0:17:57 > 0:18:00But the two flats could achieve a combined total
0:18:00 > 0:18:02of £100,000.
0:18:02 > 0:18:06Well, it's certainly a lot of property for the money.
0:18:06 > 0:18:10But is it worth it? It all comes down to what you're going to use this place for.
0:18:10 > 0:18:14I think converting it into a flat is probably the way to go.
0:18:14 > 0:18:15It's certainly a good location for that.
0:18:15 > 0:18:18The downstairs unit, the jury's out on that one!
0:18:18 > 0:18:22Let's see who bought it when it went under the hammer.
0:18:24 > 0:18:28On to lot number 16. Premises with investment and development potential.
0:18:28 > 0:18:31Who's going to start me off at 50,000?
0:18:31 > 0:18:3345?
0:18:33 > 0:18:35Start me off, then.
0:18:35 > 0:18:3840,000. Thank you. 40,000.
0:18:38 > 0:18:39That wakes us up. That's 42 at the back.
0:18:39 > 0:18:4342 and four. 44? Thank you. 44,000. 46.
0:18:43 > 0:18:4546,000 standing. 46 and eight.
0:18:45 > 0:18:47Looking for eight. 48.
0:18:47 > 0:18:49Thank you. 48 and 50.
0:18:49 > 0:18:50I'll take him in ones.
0:18:50 > 0:18:52One. One. 50. 51.
0:18:52 > 0:18:55And two. Two. Three. Three.
0:18:55 > 0:18:58And four. 54,000.
0:18:58 > 0:19:0054,000 on you. 54. And five.
0:19:00 > 0:19:0255. 55,000 on you.
0:19:02 > 0:19:0555,000. 55,000. Any advance?
0:19:05 > 0:19:0755. 55,000. I'm in the market.
0:19:07 > 0:19:0955,000. 55?
0:19:09 > 0:19:1155,000.
0:19:11 > 0:19:13Are you going to let him get it, sir, at 55?
0:19:13 > 0:19:16Cos he's going to get it. 55,000, it's his.
0:19:16 > 0:19:1855,000. Any advance? Be quick.
0:19:18 > 0:19:2055,000.
0:19:20 > 0:19:22Yours, sir.
0:19:23 > 0:19:27That successful bid of £55,000
0:19:27 > 0:19:33was made by Andy, who attended the auction with his wife, Yen.
0:19:34 > 0:19:36Andy hails from the south of Ireland
0:19:36 > 0:19:37and Yen is from China.
0:19:37 > 0:19:40The couple met when they were both in Dubai
0:19:40 > 0:19:44but have since swapped the rolling sand dunes of the Middle East
0:19:44 > 0:19:46for the rolling valleys of South Wales.
0:19:48 > 0:19:52'Andy, Yen, lovely to meet you both. Congratulations!'
0:19:52 > 0:19:55Thank you. Tell me why you wanted to buy this interesting property?
0:19:55 > 0:19:59Well, the location was good, and it's pretty close to where we live.
0:19:59 > 0:20:03It's in good condition, the price was right.
0:20:03 > 0:20:08It was at auction. I like buying at auction. Right.
0:20:08 > 0:20:11Why? You get the best value, I think, at auction.
0:20:11 > 0:20:16We bought another property at auction, six months ago?
0:20:16 > 0:20:20Yes. Mm. We're in the process of renovating that at the moment.
0:20:20 > 0:20:24He likes to buy auction everything!
0:20:26 > 0:20:28Car, everything!
0:20:28 > 0:20:32So have you done many of these kind of things before?
0:20:32 > 0:20:34We're doing one at the moment in Newport. Right.
0:20:34 > 0:20:38So since I gave up my job in '08,
0:20:38 > 0:20:41we tend to do property. Right.
0:20:41 > 0:20:43So you made a move into property.
0:20:43 > 0:20:46Actually you went into property just as the market went... Crashed!
0:20:46 > 0:20:50Oh, yeah. Got to pick the right time!
0:20:50 > 0:20:54Well, some would say bargains to be had at that point.
0:20:54 > 0:20:57Well, I was involved in building four houses at the time.
0:20:57 > 0:20:58It was bad. Ooh.
0:20:58 > 0:21:03But you managed to survive and work through that. Yes, yes.
0:21:03 > 0:21:05We sold three and we live in one. Right.
0:21:05 > 0:21:08But we didn't make any money! Right.
0:21:09 > 0:21:12'Let's hope that doesn't turn out to be the case this time.
0:21:12 > 0:21:17'Andy and Yen bought this property hoping that its mixed use status
0:21:17 > 0:21:19'means more opportunities.'
0:21:19 > 0:21:22So let me understand exactly what the plans for it are.
0:21:22 > 0:21:24You're going to rent out downstairs? Yes.
0:21:24 > 0:21:27And then upstairs, rent that out as well, or...
0:21:27 > 0:21:30Probably. See whether it would rent out as offices.
0:21:30 > 0:21:32If it doesn't, I'd leave it as a flat.
0:21:32 > 0:21:35Are you going to have to apply for change of use if this is offices? Yes.
0:21:35 > 0:21:40I will, yeah. But a lot of the buildings in the street are used as offices. Right.
0:21:40 > 0:21:44There shouldn't be a problem with getting a change of use if I need it.
0:21:44 > 0:21:46But I will have to apply.
0:21:46 > 0:21:50Tell me what you're going to do, then, to sort it out. What's the plan for works and stuff?
0:21:50 > 0:21:55It needs redecorating. I don't know what we'll do with the kitchen yet
0:21:55 > 0:21:57because if it goes as commercial,
0:21:57 > 0:21:59the kitchen is too large.
0:21:59 > 0:22:01So we'll have to wait and see on that one.
0:22:01 > 0:22:05But it'll be a new kitchen if it's going as domestic. Right.
0:22:05 > 0:22:10And a new bathroom. And keep it on two levels as it is, pretty much? Yes.
0:22:10 > 0:22:15It's three levels in total. It's too complicated to turn it into two flats.
0:22:15 > 0:22:20'Andy and Yen are finishing another renovation project just now.
0:22:20 > 0:22:22'When they complete that,
0:22:22 > 0:22:25'they plan to spend ten to 12 weeks getting this one into shape.
0:22:25 > 0:22:28'But what about their budget for the work here?'
0:22:29 > 0:22:31I don't scrimp on budgets. There's no point.
0:22:31 > 0:22:34Whatever it takes, it'll take,
0:22:34 > 0:22:37but it won't take more than ten.
0:22:37 > 0:22:40Great. So are you excited by the project?
0:22:40 > 0:22:42Yeah. Work! Work!
0:22:43 > 0:22:47Yen, what's your involvement going to be with the project as you go along?
0:22:47 > 0:22:50Are you going to help with decoration and design?
0:22:50 > 0:22:53Yeah. We do everything together at the moment.
0:22:53 > 0:22:55So, yeah.
0:22:55 > 0:22:58I'm sometimes his mate!
0:22:58 > 0:23:00I do everything!
0:23:00 > 0:23:03Painting and... Yeah.
0:23:03 > 0:23:06I do lots and lots. Oh, great. Yeah.
0:23:06 > 0:23:08We do it all ourselves.
0:23:08 > 0:23:10We were plasterboarding yesterday!
0:23:10 > 0:23:13And we'll be plasterboarding later today!
0:23:13 > 0:23:15And we'll be plumbing next week!
0:23:15 > 0:23:17We do everything ourselves.
0:23:17 > 0:23:20Congratulations. Good luck to you both. Look forward to seeing how you get on.
0:23:20 > 0:23:22Nice to meet you. Thank you.
0:23:23 > 0:23:28Andy and Yen certainly seem confident they can sort this place out.
0:23:28 > 0:23:32However, it does all rely on getting that change of use
0:23:32 > 0:23:36and also whether or not there's a demand for what they are creating.
0:23:36 > 0:23:39You can find out how they get on later in the show.
0:23:40 > 0:23:42Coming up, not even a torrential downpour
0:23:42 > 0:23:46can dampen my enthusiasm for this big garden in Carlisle.
0:23:46 > 0:23:49That's my report for the garden. Now back inside!
0:23:50 > 0:23:53In Pontypool, for husband and wife Andy and Yen,
0:23:53 > 0:23:57property developing is like true love - it never runs smooth!
0:23:57 > 0:24:00She picked the colours, which I didn't agree with!
0:24:01 > 0:24:06But first, in London, are the experts impressed by this transformation?
0:24:06 > 0:24:10It's all beautifully colour co-ordinated, and it looks fabulous.
0:24:13 > 0:24:16Back to London and the suburb of Sydenham,
0:24:16 > 0:24:20where I enjoyed a stroll through the local park.
0:24:21 > 0:24:24That's where I saw this three-bedroomed mid-terrace
0:24:24 > 0:24:27which had a guide price of 220,000.
0:24:30 > 0:24:32Inside it was bold.
0:24:33 > 0:24:34It was bright.
0:24:36 > 0:24:38And was bursting with potential.
0:24:39 > 0:24:43The property came with a double garage at the back.
0:24:43 > 0:24:47It's such a phenomenal space that you could do so much with.
0:24:47 > 0:24:51I really see this adding a lot of value to that house.
0:24:51 > 0:24:54And who spotted the opportunity on auction day?
0:24:54 > 0:24:57The successful bidder was Vincenzo
0:24:57 > 0:25:00who paid 265,000 for the property.
0:25:00 > 0:25:03I met him and his furry little friend Thomas
0:25:03 > 0:25:05to hear about his plans.
0:25:07 > 0:25:10There are three steps I'd like to do with this property.
0:25:10 > 0:25:12The first step is just to try the auction.
0:25:12 > 0:25:18If it works, just to put it back in auction and that will give me around 15 to £20,000 profit.
0:25:18 > 0:25:21The second step which I would like to do
0:25:21 > 0:25:22is just to put it with an estate agent
0:25:22 > 0:25:26and to get around £310,000, if I can.
0:25:26 > 0:25:30And the last step, the one I like, the one that gives me more pleasure
0:25:30 > 0:25:32because to see the property transformed
0:25:32 > 0:25:37is to do a nice job to the property and get the maximum price.
0:25:37 > 0:25:39Vincenzo, good luck with this.
0:25:39 > 0:25:42It's going to be so interesting, seeing which option you take. Good luck.
0:25:42 > 0:25:46Thank you, Lucy. It has been a pleasure to meet a beautiful girl like you! Thank you, Vincenzo!
0:25:46 > 0:25:51'I could tell Vincenzo was a man who appreciates the finer things in life!
0:25:51 > 0:25:53'But which option would win out?
0:25:55 > 0:25:58'We're back eight months later to find out!'
0:26:13 > 0:26:19Anything could have happened, but under Vincenzo's exacting eye for detail,
0:26:19 > 0:26:20everything has happened.
0:26:23 > 0:26:27I'm absolutely flabbergasted by this fantastic transformation.
0:26:28 > 0:26:31As you can see now, the house is completely refurbished.
0:26:31 > 0:26:35New kitchen, new bathroom, new bedroom.
0:26:35 > 0:26:37It's practically changed everything
0:26:37 > 0:26:38as it was before.
0:26:41 > 0:26:45Vincenzo ditched plans A, B and C
0:26:45 > 0:26:48and plumped instead for Plan D.
0:26:48 > 0:26:50He decided to make this house his home
0:26:50 > 0:26:54and lavishly redesigned the interior decor.
0:26:54 > 0:26:56The Italian reputation for style
0:26:56 > 0:26:58seems to be alive and well.
0:26:58 > 0:27:01I particularly like the mood lighting in the living area
0:27:01 > 0:27:04and the fabulous new kitchen.
0:27:04 > 0:27:06Super chic!
0:27:07 > 0:27:11The kitchen has been designed by me, as everything else in this house.
0:27:11 > 0:27:15I tried to keep a simple line,
0:27:15 > 0:27:18the white units, white worktop,
0:27:18 > 0:27:25and I tried to install appliances where they can last longer, being my own property.
0:27:25 > 0:27:31And I chose the one I thought was appropriate
0:27:31 > 0:27:34to my requirements.
0:27:36 > 0:27:41The ground floor has a smooth flow from the living space to the dining area and kitchen.
0:27:43 > 0:27:47It's open plan, yet each area is a well-defined space
0:27:47 > 0:27:50which continues out through the patio doors
0:27:50 > 0:27:52into the back courtyard.
0:27:52 > 0:27:56It's a perfect space for enjoying a fine Italian wine
0:27:56 > 0:27:58with friends on a summer's evening.
0:27:59 > 0:28:02Now, what about that double garage
0:28:02 > 0:28:04which I thought was packed with potential.
0:28:09 > 0:28:12Oh, bravo, Vincenzo!
0:28:12 > 0:28:15He has partitioned the garage to create a home office.
0:28:15 > 0:28:19I definitely take my hat off to him!
0:28:19 > 0:28:22I had the option to leave it as a garage
0:28:22 > 0:28:24or to create an office.
0:28:24 > 0:28:27And because I'm going to live in the property,
0:28:27 > 0:28:32I like to go outside, like leaving the house and going to the office.
0:28:32 > 0:28:36And I believe I achieved creating a new space
0:28:36 > 0:28:40where I can relax and do my own work.
0:28:40 > 0:28:43Well, let's take a look upstairs.
0:28:44 > 0:28:48The interior design of the bedrooms is impeccable and eye-catching.
0:28:48 > 0:28:51The lightly contrasting colours and plush carpets
0:28:51 > 0:28:53create the perfect place to relax.
0:28:58 > 0:29:04And in the master bedroom, Vincenzo has again spared no expense
0:29:04 > 0:29:06to create an oasis of calm.
0:29:08 > 0:29:11I really enjoy putting light in my house,
0:29:11 > 0:29:14especially depending which humour I'm in.
0:29:14 > 0:29:18For instance, when I want to read and relax, I put soft light.
0:29:18 > 0:29:25I enjoy doing the house with the light looking in different angles.
0:29:25 > 0:29:29They are pretty expensive, the lighting, as well.
0:29:31 > 0:29:35Vincenzo spent around 3,000 on each of his chandeliers!
0:29:35 > 0:29:38Yes, you heard me right!
0:29:39 > 0:29:42Now, you don't need to be an expert to realise
0:29:42 > 0:29:45that Vincenzo's original budget of 20,000
0:29:45 > 0:29:47has been blown big time!
0:29:47 > 0:29:51So, how much did he actually spend?
0:29:51 > 0:29:5520,000 was the budget I had to spend.
0:29:55 > 0:29:59Unfortunately, I spent £120,000!
0:29:59 > 0:30:02Oh, my goodness me!
0:30:10 > 0:30:14Vincenzo's determination to create his dream home
0:30:14 > 0:30:19meant he required his builders to re-do work until it matched his high standards.
0:30:19 > 0:30:24That was a costly, yet for Vincenzo, ultimately rewarding, decision.
0:30:25 > 0:30:29When you are doing your own house, the money is not an object.
0:30:29 > 0:30:33Because where you live is where you spend most of the time.
0:30:33 > 0:30:36And when you come back from work,
0:30:36 > 0:30:38you want a place to relax
0:30:38 > 0:30:42and forget whatever has happened during the day.
0:30:42 > 0:30:45So the money was not really an object.
0:30:45 > 0:30:49Vincenzo's 120,000 spend
0:30:49 > 0:30:52includes the renovation, furnishing, fixtures and fittings
0:30:52 > 0:30:56which, added to his £265,000 purchase
0:30:56 > 0:31:01makes his outlay a whopping 385,000.
0:31:02 > 0:31:06That's enough to make me "paws" for thought!
0:31:09 > 0:31:11We asked two local estate agents
0:31:11 > 0:31:15for their opinions on Vincenzo's new home.
0:31:17 > 0:31:20My overall impression is of a very high quality standard finish.
0:31:20 > 0:31:22I like the attention to detail,
0:31:22 > 0:31:24the way he's picked the colour schemes.
0:31:24 > 0:31:28It's beautifully colour-coordinated. And it looks fabulous.
0:31:28 > 0:31:32I think it's a nicely-proportioned house, good room sizes.
0:31:32 > 0:31:34Nice living space downstairs.
0:31:34 > 0:31:37The finish is superb. No question.
0:31:37 > 0:31:39High specification throughout.
0:31:39 > 0:31:44Vincenzo has designed his home far beyond a rental specification
0:31:44 > 0:31:46and has no intention of letting it.
0:31:46 > 0:31:50But how much do the estate agents believe the property could sell for
0:31:50 > 0:31:56bearing in mind Vincenzo's total investment of 385,000.
0:31:56 > 0:32:01I believe this property would resell for in the region of £400,000.
0:32:01 > 0:32:06I believe the property could resell for between 400,000 and £425,000.
0:32:06 > 0:32:09If achieved, those figures would make Vincenzo
0:32:09 > 0:32:15a pre-tax profit of between 15 and 40,000, minus tax and expenses.
0:32:15 > 0:32:17What does he think of that?
0:32:19 > 0:32:21It's interesting. It's really interesting.
0:32:21 > 0:32:24I know it doesn't apply to me because it's my lovely home,
0:32:24 > 0:32:28where to live, I hope, for a very long time. Me and Thomas!
0:32:36 > 0:32:40This property has been transformed from garish to gorgeous.
0:32:40 > 0:32:41It's simply stunning
0:32:41 > 0:32:44and I've been delighted to discover
0:32:44 > 0:32:48that both Vincenzo and Thomas are happy in their new home.
0:32:48 > 0:32:51So, will he go to another auction any time soon?
0:32:52 > 0:32:56For the time being, I will have a nice rest and enjoy what I did.
0:32:56 > 0:32:58Maybe in future. You never know in life!
0:33:05 > 0:33:10Courtesy of its geographical position, the border city of Carlisle
0:33:10 > 0:33:13is steeped in history.
0:33:13 > 0:33:15Romans, Jacobites and border reevers,
0:33:15 > 0:33:18their conflicts have all played out here.
0:33:18 > 0:33:21Today, it's the main cultural and industrial centre
0:33:21 > 0:33:23of North Cumbria.
0:33:23 > 0:33:25The property I'm here to see
0:33:25 > 0:33:30is very close to the town centre in this popular residential area.
0:33:30 > 0:33:33Nice cul-de-sac location, close to Cumberland Infirmary,
0:33:33 > 0:33:36so the possibility of rental to hospital workers.
0:33:36 > 0:33:40But it's this, it's a bungalow, it's three bedrooms,
0:33:40 > 0:33:43had a guide price of 60 to 70,000 quid.
0:33:43 > 0:33:45Let's take a look.
0:33:49 > 0:33:52For starters, off-street parking is a bonus
0:33:52 > 0:33:55and it shouldn't take too much effort to tidy up the front garden
0:33:55 > 0:33:57for some instant kerb appeal.
0:33:59 > 0:34:00So, what's in store?
0:34:00 > 0:34:05A little entrance porch area, which is always nice.
0:34:05 > 0:34:08And then through into a fairly decent-sized living area.
0:34:08 > 0:34:12Lots of light coming in through these huge great windows, which is good.
0:34:12 > 0:34:16A modernish-looking feature gas fire there.
0:34:16 > 0:34:19And in general, it doesn't look to be in too bad a condition.
0:34:21 > 0:34:23A bit of wooden floor. Might want to keep that.
0:34:23 > 0:34:27You come to the sort of central part of the property, though,
0:34:27 > 0:34:32and somebody had real fun with the paint colour choices!
0:34:32 > 0:34:35Pink Panther, watch out!
0:34:35 > 0:34:39An interesting colour blue there. Orangey-brown on the walls.
0:34:39 > 0:34:41Well, it's not to everyone's taste,
0:34:41 > 0:34:43but the layout most certainly is.
0:34:43 > 0:34:45Kitchen there, one bedroom there,
0:34:45 > 0:34:48a bathroom and loo here.
0:34:48 > 0:34:50Looks like it could do with a bit of work.
0:34:50 > 0:34:55And it terms of layouts of bungalows, I really like this.
0:34:55 > 0:34:57MUSIC: Any Dream Will Do
0:35:14 > 0:35:17My dream is of a nice blank canvas
0:35:17 > 0:35:20so the bright paintwork has to go!
0:35:20 > 0:35:22Rip out the kitchen and the bathroom
0:35:22 > 0:35:25and you've got a good solid framework to hang your renovation on.
0:35:27 > 0:35:30Towards the rear of the property, two more bedrooms.
0:35:30 > 0:35:35You do get a sense of enormous space in this bungalow.
0:35:35 > 0:35:38Certainly a lot more than when you first see it as you come up the road.
0:35:38 > 0:35:42In this rear bedroom, you've also got the addition of an en-suite,
0:35:42 > 0:35:44currently laid out as a wet room.
0:35:44 > 0:35:50So in terms of internal layout, for a change, you can pretty much leave it exactly as it is.
0:35:52 > 0:35:56This three-bed bungalow is looking kinda peachy.
0:36:02 > 0:36:07And talking of fruit trees, there's definitely scope for a little orchard out back.
0:36:10 > 0:36:13Well, at the rear and side of the property,
0:36:13 > 0:36:17a really good-sized garden, which is great news.
0:36:17 > 0:36:20Now, it's a miserable old day, but there are some advantages
0:36:20 > 0:36:23to looking at a property in the rain
0:36:23 > 0:36:26because it gives you a chance to check out not only the roof
0:36:26 > 0:36:27but also the rainwater goods.
0:36:27 > 0:36:32So I'm looking for things like overflowing gutters, bubbling drains, anything like that.
0:36:32 > 0:36:35Because as you know, if you can spot those problems early on
0:36:35 > 0:36:37you can save yourself a lot of problems in the future.
0:36:37 > 0:36:39A stitch in time saves nine.
0:36:39 > 0:36:41In this case, a few issues with the roof.
0:36:41 > 0:36:43A few tiles have slipped and things like that
0:36:43 > 0:36:46but at least all the guttering seems OK, so it's good news.
0:36:46 > 0:36:50Right. That's my report for the garden. I'm back inside.
0:36:52 > 0:36:55There is another advantage to all this rain.
0:37:01 > 0:37:04What does a local estate agent make of the bungalow
0:37:04 > 0:37:07and its 60 to £70,000 guide price?
0:37:09 > 0:37:12There's plenty of accommodation here. More than one bathroom,
0:37:12 > 0:37:14a good sized outside space, as well.
0:37:14 > 0:37:15So it's good for all people, really.
0:37:17 > 0:37:20What could this bungalow fetch if sold on?
0:37:20 > 0:37:25Once renovated, this property should achieve around £100,000.
0:37:27 > 0:37:29And on the rental market?
0:37:29 > 0:37:33It should achieve on the rental market 400 to £450 per calendar month.
0:37:34 > 0:37:37Well, to use a much over-used expression,
0:37:37 > 0:37:41it really is "surprisingly spacious", this one!
0:37:41 > 0:37:43Much bigger on the inside than it looks from the outside.
0:37:43 > 0:37:48And in general, it doesn't need too much. Bit of bathroom work, kitchen work, as ever,
0:37:48 > 0:37:51And of course, the main thing, change those colours on the walls!
0:37:51 > 0:37:54Who fancied it? Let's find out when it went under the hammer.
0:37:56 > 0:37:57OK. Lot number 11.
0:37:57 > 0:37:59Semi-detached bungalow
0:37:59 > 0:38:02with three bedrooms and two bathrooms.
0:38:02 > 0:38:04Do I see £60,000 for this?
0:38:04 > 0:38:0660, I'm in.
0:38:06 > 0:38:08Looking for 62. At 60 I'm bid.
0:38:08 > 0:38:1162 I've got. New position.
0:38:11 > 0:38:1464, sir? 64 I've got.
0:38:14 > 0:38:1666. 68?
0:38:18 > 0:38:22Thinking about it. It's with you at 66, madam.
0:38:22 > 0:38:2467. 68, madam?
0:38:24 > 0:38:2769?
0:38:27 > 0:38:3069. 69 I've got.
0:38:30 > 0:38:3170?
0:38:31 > 0:38:3370 I'm bid. 71?
0:38:34 > 0:38:36Shake of the head at 71.
0:38:36 > 0:38:37It's with you at 70.
0:38:37 > 0:38:39At £70,000.
0:38:39 > 0:38:42I'm selling it. We're in the market at 70.
0:38:42 > 0:38:44At £70,000, then.
0:38:44 > 0:38:46For the first time.
0:38:47 > 0:38:48Sorry?
0:38:49 > 0:38:5170 and a half. 71, madam?
0:38:51 > 0:38:53And a half.
0:38:53 > 0:38:55Shake of the head.
0:38:55 > 0:38:57Back with you, madam, at 71.
0:38:57 > 0:39:00Been with me all the way at £71,000.
0:39:00 > 0:39:03First time. Second time.
0:39:03 > 0:39:07Third and final time. All done, all out. Selling away.
0:39:07 > 0:39:09To you, madam. Thank you.
0:39:09 > 0:39:14That successful bid of £71,000 was placed by Judith
0:39:14 > 0:39:17who attended the auction with her husband, Stuart.
0:39:19 > 0:39:22I met the couple back at the bungalow to find out their plans.
0:39:24 > 0:39:26Judith, Stuart, great to meet you both.
0:39:26 > 0:39:28Congratulations.
0:39:28 > 0:39:30Tell me why you wanted to buy this place.
0:39:30 > 0:39:34We've been looking for somewhere in this area for my daughter to move into.
0:39:34 > 0:39:37She lives in a small house and she's got a little girl.
0:39:37 > 0:39:40That's great. What were you looking for, then,
0:39:40 > 0:39:43in terms of what you really wanted for her and what she wanted?
0:39:43 > 0:39:46Well, they needed somewhere with three bedrooms.
0:39:46 > 0:39:48And a garden.
0:39:48 > 0:39:51And this came up and we came to have a look at it
0:39:51 > 0:39:53and here we are!
0:39:53 > 0:39:55How's it working out financially, then?
0:39:55 > 0:40:00We funded it from some inheritances I've had.
0:40:00 > 0:40:05My mother died about six years ago. I'm sorry.
0:40:05 > 0:40:09And then a close relative fairly recently,
0:40:09 > 0:40:12so that's what we're using at the moment.
0:40:12 > 0:40:17How great that you can put that into finding somewhere for your daughter and her family.
0:40:17 > 0:40:20My daughter will have a house to sell once they've moved in,
0:40:20 > 0:40:23so we hope to get a fair bit back!
0:40:23 > 0:40:26Right. OK. Hopefully! Hopefully!
0:40:27 > 0:40:32'Judith and Stuart want to do their bit to help their family get a bigger space
0:40:32 > 0:40:35'but there's a lot of work to be done to this bungalow.'
0:40:38 > 0:40:40So who's going to do the work?
0:40:40 > 0:40:45Well, we're going to have contractors in to do some work on the roof.
0:40:45 > 0:40:48And electrical work, possibly.
0:40:48 > 0:40:53But we'll be doing the gutting and stripping. This is it.
0:40:53 > 0:40:57So there's a lot work. So I shall be getting fit again!
0:40:59 > 0:41:04Our son-in-law is going to do a lot of the putting in the kitchen, and plumbing and that.
0:41:04 > 0:41:09Great. And my daughter will do some of the decorating. Help strip the walls.
0:41:09 > 0:41:15Right. A combination of ourselves, family, ourselves and contractors.
0:41:15 > 0:41:19Great. And what kind of budget have you got for doing the work?
0:41:19 > 0:41:22Well, we want to try and keep it under the 15,000.
0:41:22 > 0:41:25Obviously if we have the roof done
0:41:25 > 0:41:29we thought we'd have it done properly by a contractor.
0:41:29 > 0:41:32And the timescale for doing it?
0:41:32 > 0:41:36Well, within two to three months, hopefully. Yes.
0:41:36 > 0:41:40And what about outside? What are you going to do with the garden and stuff?
0:41:40 > 0:41:43Well, the drive's a bit awkward,
0:41:43 > 0:41:49so we're going to extend that to come straight in
0:41:49 > 0:41:51so we can get vehicles in.
0:41:51 > 0:41:55And we want to get a bit of a vegetable patch going
0:41:55 > 0:41:57and have a hut in the garden.
0:41:57 > 0:42:00Trim some of the trees back.
0:42:00 > 0:42:04And then move in the swings and the slides and the playhouses!
0:42:04 > 0:42:07Yes. Trampoline! That's what she wants, a trampoline!
0:42:08 > 0:42:10'Sounds like this large, safe garden
0:42:10 > 0:42:14'is going to be a haven for grandchild and grandparents alike.
0:42:14 > 0:42:17'Although maybe not on a day like this!
0:42:17 > 0:42:22'What intrigues me are the plans for the indoors and that interesting colour scheme!'
0:42:22 > 0:42:26What kind of feel are you going for with the decorations in the kitchen and stuff like that?
0:42:26 > 0:42:28Have you got any ideas?
0:42:28 > 0:42:30My daughter's got to have a bit of an input,
0:42:30 > 0:42:33but I have to rein her back a bit
0:42:33 > 0:42:37because she has some wacky tastes in colours!
0:42:37 > 0:42:41Retro black and dark colours.
0:42:41 > 0:42:43Dark colours. Oh?
0:42:43 > 0:42:46Well, something modernish
0:42:46 > 0:42:48but not too modern!
0:42:48 > 0:42:52Cos we feel it's got a bit of a cottagey style about it.
0:42:52 > 0:42:55That's it. You've put it in a nutshell.
0:42:55 > 0:42:59The cottage style. With a slight modern twist, perhaps.
0:42:59 > 0:43:03There will be a bit of black in the shower room, but never mind.
0:43:03 > 0:43:05I haven't told you about that!
0:43:05 > 0:43:07Oh, right? What's that, then?
0:43:07 > 0:43:12No, this is just my daughter. A black and white theme in the shower room, yes.
0:43:12 > 0:43:16Do you think there might be squabbles over the kitchen design catalogue?
0:43:16 > 0:43:19Um... There might be. There might be!
0:43:19 > 0:43:24There might be. Certainly over the decoration there will be, yes.
0:43:24 > 0:43:27But we've got the flooring anyway,
0:43:27 > 0:43:30so we've already got that to change.
0:43:30 > 0:43:31Are you looking forward to it all?
0:43:31 > 0:43:34Yes, I can't wait to get started. This is it, yeah.
0:43:34 > 0:43:36Congratulations. Good luck with it.
0:43:36 > 0:43:39Thank you very much. We look forward to seeing how you get on. Thank you.
0:43:39 > 0:43:41Thank you.
0:43:42 > 0:43:45So, Judith and Stuart securing a great little property
0:43:45 > 0:43:47for their daughter and her family.
0:43:47 > 0:43:51Bits of work to be done, but nothing too major.
0:43:51 > 0:43:55However, will there be arguments over the colour schemes?
0:43:55 > 0:43:57You can find out later in the show.
0:44:01 > 0:44:05Well, time has passed. Let's see if our buyers have risen to the challenge.
0:44:05 > 0:44:09Or will they have that sinking feeling? Let's go back and find out.
0:44:10 > 0:44:14Back to Pontypool in South Wales, and this mixed-use property.
0:44:14 > 0:44:17It was a tiny commercial unit
0:44:17 > 0:44:20plus a three-bedroomed maisonette flat
0:44:20 > 0:44:21spread over three floors.
0:44:21 > 0:44:26That meant there were stairs. And lots of them!
0:44:27 > 0:44:30Phew! I feel like I've had a workout!
0:44:31 > 0:44:35But would this auction lot be a stairway to property development heaven?
0:44:35 > 0:44:40It was purchased by husband and wife Andy and Yen.
0:44:40 > 0:44:42They planned to rent out the commercial unit
0:44:42 > 0:44:45and convert the maisonette into office space
0:44:45 > 0:44:47if they could get permission for change of use.
0:44:47 > 0:44:50If not, they planned to keep the unit as is,
0:44:50 > 0:44:52despite greater financial reward
0:44:52 > 0:44:56if they converted the maisonette into two single-bedroomed flats.
0:44:56 > 0:45:01But whatever they ended up with, they were certainly going to be hands on.
0:45:02 > 0:45:05We do everything together at the moment,
0:45:05 > 0:45:07so, yeah.
0:45:07 > 0:45:10We do it all ourselves. We were plaster-boarding yesterday.
0:45:10 > 0:45:13Wow. And we'll be plasterboarding later today.
0:45:13 > 0:45:15And we'll be plumbing next week.
0:45:15 > 0:45:17So we do everything ourselves.
0:45:17 > 0:45:20'The couple don't believe in cutting corners,
0:45:20 > 0:45:24'and gave themselves ten to 12 weeks and a budget of £10,000.
0:45:24 > 0:45:27'Well, it's now one year since we met them,
0:45:27 > 0:45:30'so what's been happening at this Pontypool property?'
0:45:49 > 0:45:52'So, a big change of heart here, then,
0:45:52 > 0:45:55'as the upstairs accommodation has been converted
0:45:55 > 0:45:57'into two one-bedroomed flats.'
0:45:59 > 0:46:01We were hoping to turn it into offices.
0:46:01 > 0:46:04But there isn't much demand for offices
0:46:04 > 0:46:07so we went for planning and got permission for two flats.
0:46:07 > 0:46:09Two one-bedroomed flats.
0:46:09 > 0:46:14So we hope it'll be better to rent as two one-bedroomed flats.
0:46:15 > 0:46:19Then we put the cellar with the little shop on the bottom
0:46:19 > 0:46:22so that they have facilities.
0:46:22 > 0:46:25So it was quite a bit of work, but it's come out well.
0:46:27 > 0:46:28'Very well indeed.
0:46:28 > 0:46:31'By combining the commercial unit and the lower ground floor
0:46:31 > 0:46:33'and by adding a toilet,
0:46:33 > 0:46:36'they made the shop front a much more viable proposition.
0:46:36 > 0:46:41'So I'm not surprised Andy and Yen had no problems letting it.'
0:46:41 > 0:46:44We've leased the shop for two years
0:46:44 > 0:46:46at 3,500 a year.
0:46:46 > 0:46:49So that's sorted now for two years.
0:46:49 > 0:46:52'Now, what about the first and second floors?
0:46:52 > 0:46:57'Originally, there was a living room and kitchen on the first floor.
0:46:57 > 0:46:59'With some clever reconfiguration,
0:46:59 > 0:47:02'this has become a single-bed apartment
0:47:02 > 0:47:04'with an open-plan living and kitchen area
0:47:04 > 0:47:07'and a double bedroom with en-suite.
0:47:13 > 0:47:17'On the top floor were three bedrooms and a bathroom.
0:47:17 > 0:47:21'The bathroom has had a very welcome makeover.
0:47:23 > 0:47:25'The small bedroom is now the kitchen.
0:47:25 > 0:47:29'It's smart, tidy, and ideal for the rental market.
0:47:29 > 0:47:33'The two remaining bedrooms are now a living room and a bedroom.
0:47:38 > 0:47:40'But two flats means two sets of everything.
0:47:40 > 0:47:44'This has meant totally replumbing and rewiring the building.
0:47:44 > 0:47:47'Of course, that was work for the professionals
0:47:47 > 0:47:52'but there was no shortage of other jobs for Andy and Yen to get stuck into.'
0:47:53 > 0:47:57We had to completely rewire the two flats because they were separate flats.
0:47:57 > 0:48:00Divide the plumbing up, put in a new central heating boiler,
0:48:00 > 0:48:03put in an extra kitchen and an extra bathroom.
0:48:03 > 0:48:08And my good lady is the painter and decorator as well as the labourer,
0:48:08 > 0:48:10so she picked the colours -
0:48:10 > 0:48:12which I didn't agree with!
0:48:12 > 0:48:15But they look nice.
0:48:15 > 0:48:20I think because the kitchen is like a cream colour, you know,
0:48:20 > 0:48:22I had to make a little bit of colour
0:48:22 > 0:48:25so that people going in can see it.
0:48:25 > 0:48:27All nice.
0:48:27 > 0:48:28And it was quite easy.
0:48:28 > 0:48:30And that's it.
0:48:32 > 0:48:36'So, how much has all the extra work ended up costing?
0:48:36 > 0:48:41'Have Andy and Yen kept to their original £10,000 budget?'
0:48:41 > 0:48:44It came out at about 18,000
0:48:44 > 0:48:46which is better than I expected.
0:48:48 > 0:48:53'That £18,000 spend brings their total outlay here to 73,000.
0:48:53 > 0:48:58'A number of factors, including applying for planning permission to create the two flats
0:48:58 > 0:49:01'delayed their start on site.
0:49:01 > 0:49:02'But once they did get going,
0:49:02 > 0:49:04'the work took 14 weeks,
0:49:04 > 0:49:07'just four weeks longer than anticipated.
0:49:07 > 0:49:10'So, with the ground floor shop let,
0:49:10 > 0:49:12'what's going to happen to the flats?'
0:49:13 > 0:49:17We did intend to sell them, but there's just no point in selling.
0:49:17 > 0:49:19There's a better return to rent.
0:49:22 > 0:49:24'With that in mind, we asked two local estate agents,
0:49:24 > 0:49:27'including the one who saw the property before,
0:49:27 > 0:49:30'what they make of the renovation here.'
0:49:31 > 0:49:33The refurbishment has been done very, very well.
0:49:33 > 0:49:36I think the way he's done it,
0:49:36 > 0:49:39he's maximised the potential income
0:49:39 > 0:49:41that he can gain from the property.
0:49:41 > 0:49:45I think the owners have chosen really nice kitchens and bathrooms
0:49:45 > 0:49:47throughout the upper and lower flats
0:49:47 > 0:49:51and any potential purchasers or tenants would be really impressed.
0:49:51 > 0:49:53'The estate agents agree
0:49:53 > 0:49:55'that £3,500 per annum
0:49:55 > 0:49:58'is a fair rent for the commercial unit.
0:49:58 > 0:50:00'But what about the two flats?'
0:50:01 > 0:50:05For the upper flat, I would market this particular flat
0:50:05 > 0:50:08at £375 per calendar month
0:50:08 > 0:50:13and for the lower flat I would hope to achieve £350 per calendar month.
0:50:13 > 0:50:17I would value the upper flat at £375 per calendar month
0:50:17 > 0:50:21and the lower flat at £350 per calendar month.
0:50:21 > 0:50:24We'll be happy with that. Very happy with that. Very happy.
0:50:24 > 0:50:26That would be very good.
0:50:27 > 0:50:29'Including the rent from the retail unit,
0:50:29 > 0:50:34'Andy and Yen could achieve an annual return of just over £12,000,
0:50:34 > 0:50:37'a potential yield of nearly 17%.
0:50:37 > 0:50:39'Fantastic!
0:50:39 > 0:50:43'What could they achieve if they decided to put the whole building up for sale,
0:50:43 > 0:50:46'bearing in mind their total investment of £73,000?'
0:50:48 > 0:50:53If I was to market the building and it had tenants in each flat and the ground floor,
0:50:53 > 0:50:57then I would market it at £115,000.
0:50:57 > 0:51:00If they were to sell the building onto an investor tenanted,
0:51:00 > 0:51:03I would expect them to achieve £110,000.
0:51:03 > 0:51:06I think that's excellent valuations.
0:51:06 > 0:51:10Yes. That is more than I would have expected.
0:51:12 > 0:51:16'Those valuations would mean a profit before tax and expenses
0:51:16 > 0:51:21'of between 37 and £42,000, which is very impressive.
0:51:21 > 0:51:23'So what's next for Andy and Yen?'
0:51:23 > 0:51:26We already have another one
0:51:26 > 0:51:31so we finish another one and probably get another one.
0:51:31 > 0:51:34We really enjoy doing this job.
0:51:34 > 0:51:35So...
0:51:40 > 0:51:42Now it's back to Carlisle,
0:51:42 > 0:51:46where earlier we saw this three-bed bungalow sell for £71,000.
0:51:47 > 0:51:51It was bought by husband and wife Stuart and Judith.
0:51:51 > 0:51:55They were keen for their daughter's family to move in here
0:51:55 > 0:51:58as they thought it would provide a great living space.
0:51:58 > 0:52:02They were very excited about the wonderful garden for their grandchild.
0:52:02 > 0:52:06But this was going to be a project that would benefit all of them.
0:52:07 > 0:52:11So who's going to do the work? We'll have contractors in
0:52:11 > 0:52:14to do some work on the roof.
0:52:14 > 0:52:17But we'll be doing the gutting and stripping, you know.
0:52:17 > 0:52:21This is it. So it's a lot of work, so I'll be getting fit again.
0:52:24 > 0:52:26'It wasn't in too bad a condition.
0:52:26 > 0:52:30'It was very spacious and had a rather striking colour scheme!
0:52:30 > 0:52:33'So, one year on, let's meet up with Stuart and Judith
0:52:33 > 0:52:35to find out how it's looking now.
0:52:49 > 0:52:53'There are still splashes of colour, but it's a lot fresher in here
0:52:53 > 0:52:55'and much more modern.
0:52:55 > 0:52:57'Just take a look at the new kitchen.
0:52:57 > 0:52:59'Here's Judith to talk us through it.'
0:53:00 > 0:53:03There wasn't much left in this kitchen.
0:53:03 > 0:53:07It was pretty derelict on one side
0:53:07 > 0:53:09so we decided to take it all out.
0:53:09 > 0:53:12It was white, and I don't like the white. It's too cold looking.
0:53:12 > 0:53:15We wanted something that was a bit warmer.
0:53:15 > 0:53:20My daughter had to have black somewhere in the kitchen!
0:53:20 > 0:53:24And a bright green colour. So we've renewed it all, really.
0:53:24 > 0:53:26And this is what we've come up with.
0:53:26 > 0:53:28'What a transformation.
0:53:28 > 0:53:31'The whole place certainly feels homely.
0:53:31 > 0:53:33'Their son-in-law fitted the kitchen.
0:53:35 > 0:53:39'I love the sleek black worktops, and the tiles provide a splash of colour.
0:53:40 > 0:53:44'If this property was destined for the rental market or a straight re-sell,
0:53:44 > 0:53:47'I would have advised something a touch more neutral, perhaps,
0:53:47 > 0:53:50'but it's nice to see the family putting their personality on this project.
0:53:54 > 0:53:56'The old bathroom suite has gone
0:53:56 > 0:53:58'and it all looks a lot more cheerful.
0:53:58 > 0:54:01'It's not just the bathroom that's been done up.
0:54:01 > 0:54:02'Remember the en-suite wet room?
0:54:03 > 0:54:07'Well, that's had some magic dust sprinkled over it, too.
0:54:07 > 0:54:10'And they've installed a cracking new shower unit, as well.
0:54:11 > 0:54:13'There's some flooring still to go down,
0:54:13 > 0:54:15'but what else is there left to do?'
0:54:15 > 0:54:18Odd bits to finish off, really.
0:54:18 > 0:54:20The rest will be outside work.
0:54:20 > 0:54:25Outside work, yes. Give the house a lick of paint outside, the walls.
0:54:25 > 0:54:28And the garden.
0:54:29 > 0:54:31'At least they've cut the grass
0:54:31 > 0:54:34'and also have plans for the bit of garden at the front.'
0:54:34 > 0:54:36Yes, we're going to pave the front
0:54:36 > 0:54:42so that there's more vehicle hard core parking
0:54:42 > 0:54:43To get it off the street.
0:54:43 > 0:54:46It's difficult to drive in to that drive.
0:54:46 > 0:54:48The drive's a little bit awkward.
0:54:48 > 0:54:50'Nowadays, there are strict planning regulations
0:54:50 > 0:54:54'about creating driveways and the materials you can use
0:54:54 > 0:54:55'because of the risk of flooding.
0:54:55 > 0:54:59'So do check with your local council about your plans.
0:54:59 > 0:55:03'Stuart did a lot of the work, with their son-in-law doing the kitchen.
0:55:03 > 0:55:06'They brought in contractors for the bigger jobs like the roof.
0:55:06 > 0:55:10'They had to replace half of it while repairing the other half.
0:55:10 > 0:55:15'This took longer than expected and was more expensive than they'd hoped.
0:55:15 > 0:55:18'So what's happened to their budget of 15,000?'
0:55:19 > 0:55:23We actually paid 71,000 for it
0:55:23 > 0:55:27and we've spent about 16,000.
0:55:27 > 0:55:30A third of that was on the roof.
0:55:30 > 0:55:34Well, more than a third was on the roof.
0:55:34 > 0:55:39'The plan for this property has always been for Judith and Stuart's daughter and her family to move in.
0:55:39 > 0:55:42'But it's always good to know if the collective effort
0:55:42 > 0:55:45'will be financially rewarded.
0:55:46 > 0:55:48'We asked two local property experts
0:55:48 > 0:55:50'to come and give us their opinions.'
0:55:50 > 0:55:53'They've pretty much done what I hoped they would do.'
0:55:53 > 0:55:56They basically ripped it to pieces and redecorated the whole place.
0:55:56 > 0:55:58Put in a nice modern bathroom,
0:55:58 > 0:56:01a nice kitchen, there's two bathrooms in this property,
0:56:01 > 0:56:04a good en-suite off the master - that's always going to be a bonus.
0:56:04 > 0:56:06Looks like they've done a good job.
0:56:06 > 0:56:08They seem to be pretty thorough in the work that they've done.
0:56:08 > 0:56:10They've put good quality kitchens in.
0:56:10 > 0:56:13The bathrooms are both good. There's an en-suite.
0:56:13 > 0:56:15So I think this property has broad appeal.
0:56:18 > 0:56:21'So, a collective pat on the back to everyone involved, then.
0:56:21 > 0:56:25'But will there be a profit if they decide to sell on,
0:56:25 > 0:56:29'bearing in mind their total spend of £87,000?
0:56:31 > 0:56:35I would suggest that the resale value is around £95,000.
0:56:35 > 0:56:37However, as a strategy for selling,
0:56:37 > 0:56:40I might suggest to the owners that they try at £105,000
0:56:40 > 0:56:43in order to have some leeway for negotiation.
0:56:43 > 0:56:45This property in its condition today
0:56:45 > 0:56:49I would market this property at around 110 to £115,000.
0:56:49 > 0:56:51Yes, quite pleased, yes. That's about right, yes.
0:56:51 > 0:56:53That seems reasonable, yes.
0:56:53 > 0:56:58'The top figure would see them clear a profit of £28,000,
0:56:58 > 0:57:00'minus the usual fees and tax, of course.
0:57:00 > 0:57:04'That's good to know for the future should they ever want to re-sell.
0:57:04 > 0:57:06'But what if they decided to rent it out?'
0:57:06 > 0:57:10Rental for this property would be in the region of £500.
0:57:10 > 0:57:12A property like this with there being three bedrooms
0:57:12 > 0:57:16should achieve £500 per calendar month.
0:57:16 > 0:57:17Gosh! That much?!
0:57:17 > 0:57:20Jolly good. Crikey!
0:57:20 > 0:57:23Perhaps we'll rent it out instead!
0:57:23 > 0:57:25'No wonder they're pleased.
0:57:25 > 0:57:27'That's almost a seven per cent yield.
0:57:28 > 0:57:31'Judith and Stuart bought this for their family.
0:57:31 > 0:57:34'But it's good to know that they've got a nice return waiting
0:57:34 > 0:57:37'if they ever come to sell or rent in the future.
0:57:37 > 0:57:40'But for now, they're just happy to help their granddaughter settle in
0:57:40 > 0:57:42with her parents.
0:57:42 > 0:57:46I'm looking forward to getting my grandchild into the garden.
0:57:46 > 0:57:51Get to growing some vegetables and stuff, and what have you.
0:57:51 > 0:57:56Our garden's not really suitable for growing that sort of stuff,
0:57:56 > 0:57:59so it will be nice to go and do that.
0:58:02 > 0:58:05Join us next time for more Homes Under The Hammer.
0:58:05 > 0:58:07We'll see you then. Goodbye! Goodbye!
0:58:28 > 0:58:31Subtitles by Red Bee Media Ltd