0:00:02 > 0:00:06For some people, buying and doing up a property is a dream.
0:00:06 > 0:00:08For others, it's a reality.
0:00:08 > 0:00:13Are you a doer or a dreamer when it comes to homes under the hammer?
0:00:39 > 0:00:42Buying a property at auction can be a bit stressful.
0:00:42 > 0:00:47It happens so quickly. In a split second, you're the owner of a house.
0:00:47 > 0:00:51If you plan on buying at auction, make sure you are well prepared.
0:00:51 > 0:00:55Yes. So, what inspired the buyers on today's show?
0:00:56 > 0:01:01'Fancy a three-bed mid terrace in a lovely area just outside Stoke?
0:01:01 > 0:01:05'Could have been yours for just £75,000.'
0:01:06 > 0:01:09'How about this four-bed mid terrace in East Ham, London?
0:01:09 > 0:01:15'With its guide price of £205,000, do it up quick and rent it out fast.
0:01:16 > 0:01:20'Or maybe a large period property in Devon takes your fancy?
0:01:20 > 0:01:23'With a workshop out back and lots of space, was it worth a punt?
0:01:26 > 0:01:28'All of these properties have been sold at auction.
0:01:28 > 0:01:34'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:34 > 0:01:35Sold. 318.
0:01:41 > 0:01:44Green fields, idyllic canalside setting,
0:01:44 > 0:01:47horses trotting along the roads.
0:01:47 > 0:01:51We're off to a good start, but can you guess where I am?
0:01:54 > 0:01:56Stop the presses!
0:01:56 > 0:01:58Stoke-on-Trent in Staffordshire
0:01:58 > 0:02:03isn't all about Victorian terraces and the Potteries.
0:02:03 > 0:02:06Just four miles outside the city, look what you've got -
0:02:06 > 0:02:10lovely countryside, winding country lanes and even a canal.
0:02:10 > 0:02:16Hopefully, the properties round here will be equally pleasing on the eye.
0:02:16 > 0:02:21'It shouldn't come as a surprise that Staffordshire can be beautiful,
0:02:21 > 0:02:25'but it's often forgotten and all this prettiness doesn't come
0:02:25 > 0:02:28'with as high a price tag as you might expect.'
0:02:28 > 0:02:34In Baddeley Green, you're a short stroll from that lovely countryside
0:02:34 > 0:02:38and a ten-minute drive from Stoke-on-Trent itself.
0:02:38 > 0:02:41Which makes this a very popular place to live.
0:02:41 > 0:02:44Here's the property I'm here to see.
0:02:44 > 0:02:49It's a three-bedroom mid terrace at a guide price of 75,000 quid.
0:02:51 > 0:02:55'So this property is on quite a busy little road, but it's tree-lined
0:02:55 > 0:02:59'and those luscious leaves take the edge off the traffic beyond.
0:02:59 > 0:03:01'It's all rather tranquil round here.
0:03:01 > 0:03:05'Let's hope the inside is just as pleasing.'
0:03:06 > 0:03:08The porch may not be the most attractive.
0:03:08 > 0:03:13However, it does a fantastic job of keeping out noise from the road
0:03:13 > 0:03:15and providing extra insulation.
0:03:15 > 0:03:18So, you come down this corridor
0:03:18 > 0:03:22and immediately I'm shocked at the size of this place.
0:03:22 > 0:03:25You've got stairs going up to your bedrooms.
0:03:25 > 0:03:29Down the corridor, a little living room area there.
0:03:29 > 0:03:32Down here, a step.
0:03:32 > 0:03:36You've got this little rear sitting room area,
0:03:36 > 0:03:38which is a useful space.
0:03:38 > 0:03:41But I think this would end up not being used,
0:03:41 > 0:03:46because it's almost like a through corridor to the kitchen.
0:03:46 > 0:03:50You come into what I guess is an extension.
0:03:50 > 0:03:53The ceilings have dropped in height.
0:03:53 > 0:03:57It's not a bad space, but what I think you should be doing
0:03:57 > 0:04:00is taking out this wall here.
0:04:00 > 0:04:04It would be a big job because that is actually a chimney.
0:04:04 > 0:04:08Lots of work involved, however, you could open up these two rooms
0:04:08 > 0:04:13to create one huge family living area/kitchen.
0:04:13 > 0:04:15That would be spectacular.
0:04:15 > 0:04:19'The only thing is that the cost of doing it could be spectacular, too.
0:04:19 > 0:04:22'It depends on whether the buyer's willing to spend money
0:04:22 > 0:04:26'in the hope that would be reflected in the resale value.
0:04:26 > 0:04:30'If it's going to be a family home, the profit margin is less important.
0:04:30 > 0:04:35'It's good to have options, though, so what has upstairs got to offer?'
0:04:36 > 0:04:41Upstairs, the feeling of surprising spaciousness continues.
0:04:41 > 0:04:44Three bedrooms - one at the back not the biggest
0:04:44 > 0:04:49and showing signs of a bit of damp, which needs to be investigated.
0:04:49 > 0:04:51You've got the bathroom here.
0:04:51 > 0:04:55It's not huge and it could do with a new suite, for sure,
0:04:55 > 0:04:58but at least it is upstairs.
0:04:58 > 0:05:01A much bigger bedroom here, a very good sized double.
0:05:01 > 0:05:04Then down this little landing area -
0:05:04 > 0:05:08I bet these doors would be nice when they're stripped back -
0:05:08 > 0:05:12into your front bedroom, and a really nice size this is.
0:05:12 > 0:05:14The bedrooms upstairs, two of them,
0:05:14 > 0:05:19have got these traditional 1910, 1920-odd fireplaces,
0:05:19 > 0:05:21which is a lovely feature.
0:05:21 > 0:05:25Polystyrene tiles is not a good feature. They have to go.
0:05:25 > 0:05:29From that view from the road to what you find inside,
0:05:29 > 0:05:31they are poles apart.
0:05:31 > 0:05:33'So far, it has plenty going for it.
0:05:33 > 0:05:38'Out the back, there's a lovely little garden with a handy garage.
0:05:38 > 0:05:42'Access to it is along this lane. It ticks all sorts of boxes.
0:05:42 > 0:05:47'Does a local property expert agree? Let's find out.'
0:05:48 > 0:05:50# In an ideal home
0:05:53 > 0:05:57# Everything's safe and you can
0:05:59 > 0:06:01# Sit by your fire... #
0:06:02 > 0:06:06The first impressions of the house are that it's a family sized house.
0:06:06 > 0:06:09Although some updating is needed,
0:06:09 > 0:06:11I'd say nothing major.
0:06:11 > 0:06:13'What about a valuation, then?
0:06:13 > 0:06:16'First, the resale value.'
0:06:16 > 0:06:20After modernisation, depending on the standard, of course,
0:06:20 > 0:06:24I would anticipate a resale value in the region of £120,000.
0:06:24 > 0:06:28'What if the owner decided to let it?'
0:06:28 > 0:06:33In good condition, I'd see a rental return in the region of £500 per calendar month.
0:06:33 > 0:06:38You might want to play around with the internal layout and there's a few bits of damp,
0:06:38 > 0:06:43but what you've got here is a really amazing sized terrace property
0:06:43 > 0:06:45for a good price in a lovely area.
0:06:45 > 0:06:48Let's see who fancied it when it went under the hammer.
0:06:48 > 0:06:51Lot 52. 65, then?
0:06:51 > 0:06:5365 bid. Thank you.
0:06:53 > 0:06:57At £65,000. 70 can I say now?
0:06:57 > 0:07:01At 65,000. Looking for 70 now. At £65,000.
0:07:01 > 0:07:06I'll go in ones, if it helps. Bid's at 65. 66, can we say?
0:07:06 > 0:07:0966. 67. 68. 69.
0:07:09 > 0:07:1170.
0:07:12 > 0:07:16At £70,000. 71 anywhere else?
0:07:16 > 0:07:19At £70,000. Bid's left at 70,000.
0:07:19 > 0:07:21New bidder, 71.
0:07:21 > 0:07:2372.
0:07:23 > 0:07:2473.
0:07:24 > 0:07:2674.
0:07:26 > 0:07:2875.
0:07:28 > 0:07:31At 75,000. Bid is seated. Against you standing.
0:07:31 > 0:07:33At 75,000.
0:07:33 > 0:07:36Are you back in? Another one?
0:07:36 > 0:07:40I'm assuming you're out. Bid is 75, seated. No mistakes.
0:07:40 > 0:07:44Another one anywhere else? If not, 75 for the first time.
0:07:44 > 0:07:4775 for the second time.
0:07:47 > 0:07:51Third and final time. Bid's seated. No mistakes. 75...
0:07:51 > 0:07:53It's sold. Well done.
0:07:53 > 0:07:58'The hammer fell bang on the guide price of £75,000.
0:07:58 > 0:08:04'The successful bid was placed by Ian, who attended the auction with his wife Barbara and daughter Liz.
0:08:06 > 0:08:10'I met father and daughter at the property to hear about their plans.
0:08:10 > 0:08:13'Ian's a retired plumber, which could come in handy,
0:08:13 > 0:08:15'and Liz is a beauty therapist.
0:08:15 > 0:08:18'Given that the place needs a good makeover,
0:08:18 > 0:08:20'that could be useful, too.'
0:08:20 > 0:08:23- Liz, Ian, good to meet you. - Hiya.- Hi, there.
0:08:23 > 0:08:27- Congratulations.- Thank you.- Tell me why you wanted to buy this place.
0:08:27 > 0:08:30Well, I needed a new property.
0:08:30 > 0:08:34I've been looking in the area and this one took my eye.
0:08:34 > 0:08:36I just liked the size of the rooms
0:08:36 > 0:08:40- and how close it is to friends, families, schools.- Great.
0:08:40 > 0:08:44- A new place for you to live? - Yeah. New place to live.- Wow!
0:08:44 > 0:08:49And the children. I wanted a project so I could put my own stamp on it.
0:08:49 > 0:08:52So I sweet-talked my dad into going to the auction.
0:08:52 > 0:08:58- Ian, you're Dad!- Yeah. - At what point did you get brought in and what's your involvement?
0:08:58 > 0:09:04Phew! To have a look at the property, to have a good look round.
0:09:04 > 0:09:09Um...retired this year, needed a project. This might be a good idea.
0:09:09 > 0:09:16- Oh, great!- So, a lot of work, but it will be worth it in the end. - Of course it will.
0:09:16 > 0:09:21'It was Ian and Barbara who bought the property to help their daughter,
0:09:21 > 0:09:24'so she can move in with her three children.'
0:09:26 > 0:09:30- Liz's money is tied up in the property...- That I'm trying to sell.
0:09:30 > 0:09:35So we'd got a bit of cash that we'd had invested.
0:09:35 > 0:09:40Investments have been going up and down like nobody's business.
0:09:40 > 0:09:44So we decided to put it into bricks and mortar.
0:09:44 > 0:09:47- Better risk value.- For sure.
0:09:47 > 0:09:51- Is the idea that when you sell the place, you'll buy this?- Yes.
0:09:51 > 0:09:53- Then it'll be yours?- Yeah.
0:09:53 > 0:09:59Worst scenario is we have to sell it and we find another one and start again.
0:09:59 > 0:10:02So tell me what you're going to do to sort it out?
0:10:02 > 0:10:05New plumbing from start to finish.
0:10:05 > 0:10:10We've got plastic pipe. We've got copper pipe. We've got lead piping.
0:10:10 > 0:10:13We'll have it all uniform.
0:10:13 > 0:10:17New central heating system and get rid of the storage heaters.
0:10:17 > 0:10:21Obviously, get rid of all the decor that's about.
0:10:21 > 0:10:24The fireplace we're going to take out.
0:10:24 > 0:10:28The chimney at the back is suspect.
0:10:28 > 0:10:31It might be raining in through there, so take it out,
0:10:31 > 0:10:35so we've got a decent roof over that part of the house.
0:10:35 > 0:10:40And generally, it's just good modernisation.
0:10:40 > 0:10:43New kitchen, new bathroom as well.
0:10:43 > 0:10:46What kind of feel are you going to go for?
0:10:46 > 0:10:50I want to keep it quite to the period. It's 1900 that it was built.
0:10:50 > 0:10:52Not so it's like a museum.
0:10:52 > 0:10:58A bit like a modern twist, maybe, on the 1920s era, something like that.
0:10:59 > 0:11:02'I like the idea of a twist on the '20s,
0:11:02 > 0:11:06'but there are some eras best left behind for good,
0:11:06 > 0:11:09'as this '80s fireplace reminds me.
0:11:09 > 0:11:14'Liz has chosen this house for herself and her three children -
0:11:14 > 0:11:16'Matthew, Natasha and Leya.
0:11:16 > 0:11:20'The girls will share a bedroom. Lucky Matthew gets one to himself.
0:11:20 > 0:11:23'What do they make of their new home?'
0:11:23 > 0:11:29# Ask the children, they'll tell you it's all right
0:11:29 > 0:11:33# The world's out of sight... #
0:11:33 > 0:11:36'Firstly, what's their favourite thing about it?'
0:11:36 > 0:11:41The space in the lounge? I like the space in the lounge.
0:11:42 > 0:11:44I think I like all the bigger spaces.
0:11:44 > 0:11:49From the outside, it looks small, but when you get in here there's a massive space.
0:11:49 > 0:11:53There's loads of space, so you're not all cramped in.
0:11:53 > 0:11:56'Matthew's got the small room at the back
0:11:56 > 0:11:59'and he already has plans to make it bigger
0:11:59 > 0:12:01'by moving those wardrobes.'
0:12:01 > 0:12:06I want to take them out and push them back so you've got more room.
0:12:06 > 0:12:10What if there isn't any more? WHISPERS: There is.
0:12:10 > 0:12:14'Clearly, big brother knows best, Leya.
0:12:14 > 0:12:18'So, what score out of ten does she give the house so far?'
0:12:18 > 0:12:21I'm not sure if it would be nine or ten.
0:12:23 > 0:12:25Pretty good mark, isn't it?
0:12:25 > 0:12:31'It's a great mark, and I'm sure they'll give it a full ten when the work is done.
0:12:31 > 0:12:33'Liz hopes to be finished in six months,
0:12:33 > 0:12:39'and reckons she'll need to spend between £10,000 and £15,000 on the renovation.
0:12:39 > 0:12:42'Her dad, Ian, is coming out of retirement to help her
0:12:42 > 0:12:45'with whatever's required, to keep her costs down.'
0:12:45 > 0:12:49- I've been retired four months. - You haven't given yourself much of a break!
0:12:49 > 0:12:51- No!- No.
0:12:51 > 0:12:55- Your daughter hasn't given you much of a break!- No!
0:12:55 > 0:13:00- Well, he can't... He'd get bored. - Yes.- So keep him busy.
0:13:00 > 0:13:02- Congratulations. Good luck. - Thank you.
0:13:02 > 0:13:05- Look forward to seeing how you get on.- Thank you.
0:13:05 > 0:13:09I think Liz and the family have got themselves a brilliant home
0:13:09 > 0:13:11and at a very good price.
0:13:11 > 0:13:16And tempting Ian out of retirement will help to keep costs down.
0:13:16 > 0:13:20Join us later, when we, hopefully, come back to a fully restored property -
0:13:20 > 0:13:25but more importantly, somewhere that's a lovely family home.
0:13:28 > 0:13:32Today, I'm in London, in an area called East Ham. Ever heard of it?
0:13:32 > 0:13:36You would have heard of Stratford, home to the Olympics and Paralympics
0:13:36 > 0:13:39which was just three miles west.
0:13:39 > 0:13:41The games themselves may be over,
0:13:41 > 0:13:45but the legacy continues to filter through to surrounding areas.
0:13:45 > 0:13:48And East Ham is one of those to benefit.
0:13:49 > 0:13:52# Ham and eggs
0:13:52 > 0:13:55# Pork and beans
0:13:56 > 0:14:01# I would'a had more, boys But the cook was so mean... #
0:14:02 > 0:14:06The property I'm here to see is a bit of a puzzler.
0:14:06 > 0:14:09It's listed as a mid-terrace house in the catalogue,
0:14:09 > 0:14:15but the accommodation described suggests it's laid out as a couple of flats.
0:14:15 > 0:14:18So, which is it? Let's get inside and find out.
0:14:20 > 0:14:25'From outside, it's a good-looking house on a good-looking street.'
0:14:25 > 0:14:28# Say, hey, good-lookin'
0:14:29 > 0:14:31# What you got cookin'?
0:14:32 > 0:14:38# How about cookin' somethin' up with me? #
0:14:39 > 0:14:43'The property went to auction with a guide price of 205,000,
0:14:43 > 0:14:46'but from the description in the auction catalogue,
0:14:46 > 0:14:49'it's not clear if this is a house, two flats,
0:14:49 > 0:14:54'or maybe it's an HMO - a house in multiple occupation.'
0:14:54 > 0:14:58Straight away, you can see this is a house.
0:14:58 > 0:15:02There's a front door, one staircase. It's not been split up into flats.
0:15:02 > 0:15:07You've got a really nice reception room with a gorgeous fireplace.
0:15:07 > 0:15:10There is a certain amount of character, which is fantastic.
0:15:10 > 0:15:14The second reception room's interesting. There's a bed in there.
0:15:14 > 0:15:18Somebody's been using downstairs as a bedroom.
0:15:18 > 0:15:22You've got a cellar - great storage, love that.
0:15:22 > 0:15:26And this is fantastic! Really open-plan!
0:15:26 > 0:15:28Bit of a surprise there's a bathroom here.
0:15:28 > 0:15:32Again, it's suggesting somebody was living in this area.
0:15:32 > 0:15:36Er, kitchen - all in a bit of a mess.
0:15:36 > 0:15:40I think the previous owners had cats. That's all I'm going to say.
0:15:40 > 0:15:44It's very sunny. Doors leading to the back garden. Heaps of potential.
0:15:44 > 0:15:50You could knock through and create a nice open-plan breakfast room.
0:15:50 > 0:15:52Just needs a lot of work.
0:15:52 > 0:15:55'The first major job is to clear this place out.
0:15:55 > 0:15:59'I'd be applying for a skip licence as soon as possible!
0:15:59 > 0:16:03'It's upstairs where things get rather peculiar
0:16:03 > 0:16:07'with a second kitchen in what should be a sunny back bedroom.
0:16:07 > 0:16:11'There's another bedroom, which is a half-decent size.
0:16:11 > 0:16:14'There's a family bathroom.
0:16:14 > 0:16:18'At the front, there's another double bedroom and a single.
0:16:18 > 0:16:20'So, what to do here?
0:16:20 > 0:16:24'Well, I'd like to see it turned back into one house.
0:16:24 > 0:16:30'I'd give the kitchen upstairs the heave-ho, reinstate that as a bedroom and spruce up the bathroom.
0:16:30 > 0:16:34'Downstairs, I'd ditch the douche - as they say en France -
0:16:34 > 0:16:36'leaving a downstairs loo,
0:16:36 > 0:16:41'take down the partition and open up the back room as a kitchen/dining room.
0:16:41 > 0:16:46'And voila! A family home with dining kitchen, two reception rooms
0:16:46 > 0:16:49'and four bedrooms - job done!
0:16:49 > 0:16:53'But you might opt for Plan B and try to keep it as two flats.'
0:16:53 > 0:17:00Financially, it's got to be worth trying to make this house into flats - properly and legally.
0:17:00 > 0:17:03There's a demand for units this size in the area.
0:17:03 > 0:17:07While you'd need to go through the planners, you could argue
0:17:07 > 0:17:11there's an established use for this building as flats,
0:17:11 > 0:17:13which should help your case.
0:17:13 > 0:17:18But they could demand that it's turned back into a house, properly.
0:17:18 > 0:17:22I've seen this exact situation before and the owners had to comply.
0:17:22 > 0:17:27Whoever takes this on must make sure it adds up for them, either way.
0:17:30 > 0:17:32'We asked a local estate agent
0:17:32 > 0:17:37'for her take on this mid terrace and its £205,000 guide price.
0:17:37 > 0:17:40'What would she recommend being done here?'
0:17:40 > 0:17:42If we think rentals,
0:17:42 > 0:17:47it would be a good idea to have it split into flats,
0:17:47 > 0:17:49because of the income.
0:17:49 > 0:17:52But if we want to sell it,
0:17:52 > 0:17:56it would be good to have it as one lot,
0:17:56 > 0:17:58as initially it was a big house.
0:18:00 > 0:18:06'She also thinks that, as one house, the renovated property could rent out for £1,300 a month.
0:18:06 > 0:18:12'But what if it were renovated and rented out as two legitimate flats?'
0:18:12 > 0:18:15We are looking at about 850 for the ground floor flat
0:18:15 > 0:18:19and £900 per calendar month for the first floor flat.
0:18:21 > 0:18:24'And as two flats, what might they sell for?'
0:18:25 > 0:18:32We're looking at around £140,000 and £145,000 for the first floor flat
0:18:32 > 0:18:36and around £150,000 for the ground floor flat.
0:18:38 > 0:18:40'And if sold as a single house?'
0:18:42 > 0:18:45We're looking at up to £290,000.
0:18:46 > 0:18:49A decent house, flats, house, whatever it is!
0:18:49 > 0:18:54It could work out well either way if it was purchased at the right price.
0:18:54 > 0:18:57Let's see what it did go for at the auction.
0:19:00 > 0:19:05So, move on to lot 46, attractive mid-terrace house.
0:19:05 > 0:19:07I start 200.
0:19:07 > 0:19:12Not going to go below two on this. 200. 200 right at the back.
0:19:12 > 0:19:14205?
0:19:14 > 0:19:18205 sitting. Sorry, take the gentleman behind you. 205.
0:19:18 > 0:19:20210?
0:19:20 > 0:19:22215?
0:19:23 > 0:19:25220...?
0:19:25 > 0:19:31'There was plenty of interest in this one, with bids coming in from all over the room.
0:19:31 > 0:19:36'We rejoin the action at £243,000.'
0:19:36 > 0:19:38..Gentleman standing up. 243?
0:19:39 > 0:19:41244?
0:19:41 > 0:19:43245?
0:19:44 > 0:19:46Yes? No?
0:19:46 > 0:19:48244. Lady sitting down.
0:19:48 > 0:19:50245 elsewhere?
0:19:50 > 0:19:53If not, 244 first time.
0:19:54 > 0:19:56245. Sorry, I missed you.
0:19:56 > 0:19:59245. 246?
0:20:00 > 0:20:02247?
0:20:02 > 0:20:04248?
0:20:04 > 0:20:05249?
0:20:07 > 0:20:09250? Yeah?
0:20:09 > 0:20:10251?
0:20:10 > 0:20:14250, back to you. 251 elsewhere?
0:20:16 > 0:20:20251? If not, 250 first time.
0:20:20 > 0:20:22Second time.
0:20:22 > 0:20:25Third and last time, if you're all done.
0:20:25 > 0:20:27Sold, 250, to the lady.
0:20:28 > 0:20:32'That successful bid of 250,000 came from Selma.
0:20:32 > 0:20:36'She's an area operations manager for a large supermarket chain
0:20:36 > 0:20:38'and dabbles in property development as a hobby.
0:20:38 > 0:20:42'I met her at the house to hear about her plans.'
0:20:44 > 0:20:51- Selma, congratulations.- Hi, Lucy. - What happened on auction day? How much did you want to buy this house?
0:20:51 > 0:20:56I really wanted to buy it and I had a target, a figure in mind before I went there.
0:20:56 > 0:21:00- Which was?- Which was 250. - You got it bang on the nose.- Yes.
0:21:00 > 0:21:05- I was praying it wouldn't go over. - Then you'd have to incur the heavier Stamp Duty.- Yes, 3%.
0:21:05 > 0:21:09- Did you view the property prior to the auction?- No. I broke the rules.
0:21:09 > 0:21:11I didn't.
0:21:11 > 0:21:17I did a bit of research on the internet in terms of the legal pack and everything else,
0:21:17 > 0:21:19but I didn't come and see it.
0:21:19 > 0:21:23- So today is the first time you've seen it?- Yeah.- What did you think?
0:21:23 > 0:21:28Actually, I was pleasantly surprised. It could have been worse.
0:21:28 > 0:21:30It needs a lot of tidying,
0:21:30 > 0:21:34a lot of DIY stuff, but it's nothing that cannot be done.
0:21:34 > 0:21:37Lots of character. It's great to see a lot of character.
0:21:39 > 0:21:44'Dear me! Another one who didn't view her potential purchase before the auction!
0:21:44 > 0:21:46'Selma may have got away with it here.
0:21:46 > 0:21:51'She's no novice property developer and has her builder lined up to do the work
0:21:51 > 0:21:53'while she focuses on her day job.'
0:21:53 > 0:21:57What are you going to do? Are you going to leave it as a house?
0:21:57 > 0:22:00I'm going to convert it into a proper family home,
0:22:00 > 0:22:05let it for the time being as a family home or multiple occupancy.
0:22:05 > 0:22:09I have had a good look and it would work quite well as two flats.
0:22:09 > 0:22:13You could easily, and that was my intention when I went to auction.
0:22:13 > 0:22:17I thought perhaps I could change it to two flats.
0:22:17 > 0:22:21However, after talking to the council and the planning department,
0:22:21 > 0:22:25- they said they want a family home in this area.- Ah!
0:22:25 > 0:22:30So had you found out that piece of information before the auction?
0:22:30 > 0:22:33- No.- It's only after the auction you found out?- Yes.
0:22:33 > 0:22:37- You might not get permission to convert it, anyway.- That's right.
0:22:37 > 0:22:40Did you read your legal pack? Were there any hiccoughs?
0:22:40 > 0:22:43I thought I did, but you always learn from it.
0:22:43 > 0:22:48One hiccough was, literally two weeks prior to completion,
0:22:48 > 0:22:52I get a call from my solicitor and he says,
0:22:52 > 0:22:58"I strongly advise you do not go ahead with it and just lose the £25,000 deposit."
0:22:58 > 0:23:02- You're joking? Your solicitor suggested that you pull out?- Yeah.
0:23:02 > 0:23:07- Why was that?- Because the vendor, the company who sold,
0:23:07 > 0:23:09they haven't registered yet.
0:23:09 > 0:23:14And the company they bought it from, they haven't registered yet, either.
0:23:14 > 0:23:16So we had to do a bit of homework
0:23:16 > 0:23:21and found out that the company that I bought it from,
0:23:21 > 0:23:24it's only four weeks ago they purchased it.
0:23:24 > 0:23:30- Ah!- And they got the paperwork in their office to hand over to my solicitor, so it was relief!
0:23:32 > 0:23:37'Problems with title deeds can be a major sticking point when you buy a property,
0:23:37 > 0:23:41'so it's no wonder that alarm bells were ringing with her solicitor.'
0:23:41 > 0:23:44# Hey! Ring the alarm Hey! Whoa... #
0:23:44 > 0:23:48'But with the right documents turning up in the nick of time,
0:23:48 > 0:23:53'Selma had a very lucky escape and was able to complete the purchase.
0:23:53 > 0:23:58'It goes to show how crucial it is that your solicitor is on the ball.'
0:23:58 > 0:24:04What is your vision for a place like this? Now you've seen it, what do you love about it?
0:24:04 > 0:24:08The biggest bit is the space, the structure, the building.
0:24:08 > 0:24:11The character, that's what I like.
0:24:11 > 0:24:13I think anybody to go in an auction,
0:24:13 > 0:24:17especially people who've done it a few times, an amateur,
0:24:17 > 0:24:24the three things is to have conviction, courage and confidence to do that.
0:24:24 > 0:24:27- You think you've got the three Cs? - LAUGHING: I think so!
0:24:27 > 0:24:31- I call it the three Cs!- I love that.
0:24:31 > 0:24:34What about budget? How much do you hope to spend here?
0:24:34 > 0:24:37I think... I've worked it out roughly.
0:24:37 > 0:24:40It wouldn't exceed over £10,000.
0:24:40 > 0:24:45How I see it is it's cosmetic. Just nice, clean, tidy.
0:24:45 > 0:24:49New kitchen. New flooring. Painting. Just a fresh look.
0:24:49 > 0:24:53- The thing is, with a property like this, it's time consuming.- Yes.
0:24:53 > 0:24:59You've got to take off the wallpaper. There's a lot of work that is very time consuming.
0:24:59 > 0:25:01That's sometimes where the cost can bump up.
0:25:01 > 0:25:07Yep. Well, it wouldn't be me because the builder's got three weeks to get it done.
0:25:07 > 0:25:11- Really?- Yep.- You hope to get it done in three weeks? What if you don't?
0:25:11 > 0:25:13It's not a problem.
0:25:13 > 0:25:17I don't care how he does it, but he will because he's very committed.
0:25:17 > 0:25:19He plans to stay overnight, so...!
0:25:19 > 0:25:23Selma, I can't wait to see what you do. The three Cs and £10,000.
0:25:23 > 0:25:25- Good luck!- We've got a deal!
0:25:27 > 0:25:33Conviction, courage and confidence - the three Cs. Selma has them all.
0:25:33 > 0:25:38I have no doubt she will manage this renovation with typical efficiency and organisation.
0:25:38 > 0:25:43But three weeks? Join us later in the show to see if she does it.
0:25:44 > 0:25:49'Coming up, a large Georgian gem in Paignton in Devon.'
0:25:49 > 0:25:53From the floorboards to the layout, the banister, it's fab!
0:25:54 > 0:25:57'We catch up on Selma's renovation in east London.
0:25:57 > 0:26:00'Did she manage to complete it in three weeks,
0:26:00 > 0:26:04'three months or three years?'
0:26:06 > 0:26:08'First, we return to Staffordshire,
0:26:08 > 0:26:11'to see how Liz has feathered her nest.'
0:26:11 > 0:26:14This is my home, so I wanted it to be nice.
0:26:18 > 0:26:22'Back, now, to the leafy Baddeley Green area of Stoke,
0:26:22 > 0:26:27'where we saw this three-bedroom terrace sell for £75,000.
0:26:27 > 0:26:29'It was bought by Ian for his daughter Liz
0:26:29 > 0:26:33'to help her out until she sells her current property.'
0:26:33 > 0:26:37We've got a bit of cash that we'd had invested.
0:26:37 > 0:26:43Investments, they're going up and down like nobody's business.
0:26:43 > 0:26:46So we decided to put it into bricks and mortar.
0:26:46 > 0:26:50- Better risk value.- For sure.
0:26:50 > 0:26:53Is the idea when you sell the place, will you buy this place?
0:26:53 > 0:26:56- Yes, I will buy it. - It'll be yours.- Yeah.
0:26:56 > 0:27:01Worst scenario is we have to sell it, find another one and start again.
0:27:01 > 0:27:05'Liz intended to move in with her three children,
0:27:05 > 0:27:08'and they were already planning their own renovations.
0:27:08 > 0:27:11'Matthew had a keen property developer's eye
0:27:11 > 0:27:15'and wanted to get rid of those wardrobes.'
0:27:15 > 0:27:19I want to take them out and push them back so you've got more room.
0:27:19 > 0:27:23What if there isn't any more? WHISPERS: There is.
0:27:24 > 0:27:30'11 months after our first visit, we're back to see if Matthew's plans came good,
0:27:30 > 0:27:33'and whether Liz and Dad Ians' have, too.
0:27:36 > 0:27:40'First thing to note is that this has definitely become
0:27:40 > 0:27:43'the lovely family home I was hoping to see.
0:27:43 > 0:27:45'Fantastic!
0:27:48 > 0:27:52'Mum Liz's bedroom has a cosy country feel.
0:27:52 > 0:27:57'The girls, Leya and Natasha, share the floral second bedroom.
0:27:57 > 0:28:01'And Matthew has gone large in a New York state of mind.'
0:28:01 > 0:28:06MUSIC: "Empire State Of Mind" by Jay-Z and Alicia Keys
0:28:15 > 0:28:18'If you're in search of another kind of big apple,
0:28:18 > 0:28:23'you now have plenty of space to find one in the new kitchen.'
0:28:23 > 0:28:28This is the new kitchen. It's a completely different layout.
0:28:28 > 0:28:32Where I am standing would originally be the chimney,
0:28:32 > 0:28:35which has been taken out to create a lot bigger room.
0:28:35 > 0:28:39We've added the window seat and the shower room at the back
0:28:39 > 0:28:43to create another bathroom for me and the children to use.
0:28:43 > 0:28:47We chose to spend a bit more on the units than planned,
0:28:47 > 0:28:51but this is my home so I wanted it to be nice.
0:28:51 > 0:28:56'The bathroom upstairs has had a thoroughly modern makeover, too.
0:28:56 > 0:28:59'And yes, two loos are always better than one,
0:28:59 > 0:29:02'especially with three kids in the house.
0:29:02 > 0:29:06'The living room looks fantastic, too. Can you spot the difference?
0:29:08 > 0:29:12'That's right, there's a new door.'
0:29:13 > 0:29:18This hallway was covered in wall boards.
0:29:18 > 0:29:21We removed all the wall boards.
0:29:21 > 0:29:26When we took the wall boards off the wall this side,
0:29:26 > 0:29:28we uncovered a window.
0:29:28 > 0:29:34That made us then think perhaps the doorway would be better where it is.
0:29:34 > 0:29:38We bricked up the old doorway and made the doorway there.
0:29:38 > 0:29:42Which, we feel, makes the room better.
0:29:42 > 0:29:46'Liz wanted to make her mark on this place and she certainly has.
0:29:46 > 0:29:49'The fireplace she's chosen in the sitting room
0:29:49 > 0:29:54'is a big improvement on the 1980s carbuncle that was there before.
0:29:54 > 0:29:59'Moving the chimney breast was a major job but well worth doing.'
0:29:59 > 0:30:03The top of the chimney was slightly damaged and was letting in damp.
0:30:03 > 0:30:08After we investigated that, we decided that we'd remove it.
0:30:08 > 0:30:13As we removed it off the roof, we decided to remove it from the whole house.
0:30:13 > 0:30:16'The renovation went smoothly
0:30:16 > 0:30:19'and Ian, his wife Barbara, Liz and the kids
0:30:19 > 0:30:22'have all pitched in to help.
0:30:22 > 0:30:26'But they did call on the professionals for some jobs.'
0:30:26 > 0:30:29We've had an electrician in, we've had plasterers in,
0:30:29 > 0:30:34a joiner helping us and a tiler.
0:30:34 > 0:30:40And obviously we had to have the gas done by a qualified person.
0:30:42 > 0:30:47'The renovation's gone a little over budget and come in at £18,500.
0:30:47 > 0:30:50'Added to their purchase price of 75,000,
0:30:50 > 0:30:55'that brings their total outlay here to £93,500.
0:30:55 > 0:31:00'What do two local estate agents make of the refurbishment?'
0:31:00 > 0:31:03Originally, the property, when it was sold at auction,
0:31:03 > 0:31:07was very dated, it needed refurbishment all the way through,
0:31:07 > 0:31:10which has obviously been carried out to a good standard.
0:31:10 > 0:31:12It's ready to move straight into.
0:31:12 > 0:31:16You can tell there's a lot of love gone into the property.
0:31:16 > 0:31:20It's geared up towards living in rather than an immediate resale.
0:31:20 > 0:31:23'So, with all the work done so far,
0:31:23 > 0:31:26'how much do they think the house is now worth?
0:31:26 > 0:31:31'Remember, the total spend here was £93,500.'
0:31:31 > 0:31:36I would place this property on the market in the region of £140,000.
0:31:36 > 0:31:40In its current condition, I estimate the property would fetch £135,000 to £140,000.
0:31:40 > 0:31:46- £140,000 is more than what I expected.- Yeah.
0:31:46 > 0:31:50It certainly makes the work that we've put into it
0:31:50 > 0:31:53a little bit more... "Mm, yes!"
0:31:53 > 0:31:59Yeah! It's a nice pleasant surprise at the end of all the hard work.
0:31:59 > 0:32:02But it is still my family home. I don't want to move.
0:32:04 > 0:32:08'Just out of interest, what could the property fetch if rented out?'
0:32:08 > 0:32:14The rental income for this property would be in the region of £550 per calendar month.
0:32:14 > 0:32:18The rental figure would be in the region of £500 to £550 per calendar month.
0:32:18 > 0:32:23It's nice to know that's what we'd make, but it's a family home.
0:32:23 > 0:32:27It's not going out to be rented. I love living here. It's staying!
0:32:29 > 0:32:32MUSIC: "Shiny Happy People" by REM
0:32:36 > 0:32:40Paignton in Devon, a perfect spot for families.
0:32:40 > 0:32:46A massive sandy beach, an old-fashioned pier with all the amusements you could want.
0:32:46 > 0:32:52More ice cream and candy floss than you can shake a bucket and spade at!
0:32:52 > 0:32:56'Slap bang on the English Riviera, the sun shines for more hours
0:32:56 > 0:33:00'than many seaside destinations around our somewhat chilly shores.
0:33:00 > 0:33:04'I hope that a property opportunity will be shining here, too.'
0:33:04 > 0:33:08# Shiny happy people holding hands... #
0:33:08 > 0:33:13This part of Paignton dates back to mediaeval times.
0:33:13 > 0:33:19Believe it or not, in the 1500s, it was a wine-growing region.
0:33:19 > 0:33:23Well, the vines may have long gone,
0:33:23 > 0:33:29but hopefully the property I'm here to see, you'll find intoxicating.
0:33:29 > 0:33:33It's this five-bedroom house on the High Street.
0:33:33 > 0:33:37Had a guide price of 110,000 quid. Let's take a look.
0:33:37 > 0:33:40So, lots of character on the inside?
0:33:40 > 0:33:42He says, hopefully.
0:33:42 > 0:33:47Well, straight through the front door and...eugh, straight away...
0:33:47 > 0:33:49Eugh...maybe not.
0:33:49 > 0:33:51Horrible sliding door.
0:33:51 > 0:33:54Very doctor's waiting room. We've got laminate on the floors.
0:33:54 > 0:33:59Front living room there with a kitchenette off it.
0:33:59 > 0:34:01Through to a rear living area.
0:34:01 > 0:34:07Some 1930s character, not 1830s sadly, with the parquet flooring.
0:34:07 > 0:34:12And this, again, not to your taste, perhaps.
0:34:12 > 0:34:15No central heating. We've got storage radiators.
0:34:15 > 0:34:18I'm rambling a bit because what I get from this house
0:34:18 > 0:34:22is it just needs somebody to come in and take it back
0:34:22 > 0:34:25to the magnificence it once was.
0:34:25 > 0:34:28# Bring back that loving feeling
0:34:28 > 0:34:31# Cos it's gone, gone, gone... #
0:34:31 > 0:34:34'The property was built around the 1830s,
0:34:34 > 0:34:38'but with glass partitions, storage heaters and laminate flooring,
0:34:38 > 0:34:41'period features are thin on the ground
0:34:41 > 0:34:43'on the ground floor, at least.'
0:34:43 > 0:34:46# Bring back that loving feeling... #
0:34:47 > 0:34:53Upstairs, it's like the magic begins the higher up the house you get.
0:34:53 > 0:34:56There's this lovely staircase and banister.
0:34:56 > 0:35:02Then a landing area here and off it, in a fairly simplistic -
0:35:02 > 0:35:06but that's of the period that this house is made - style.
0:35:06 > 0:35:08It's all the better for that.
0:35:08 > 0:35:12Bathroom there. First bedroom there. Another bedroom here.
0:35:12 > 0:35:15The third bedroom there. Fourth bedroom there.
0:35:15 > 0:35:18Where's the fifth? Actually, one of the bedrooms is downstairs.
0:35:18 > 0:35:22It's just... It works. This is what these houses were.
0:35:22 > 0:35:28They were very simply designed, very elegant, very symmetrical.
0:35:28 > 0:35:30Downstairs, it loses it, but up here,
0:35:30 > 0:35:34from the floorboards to the layout and the banister, it's fab!
0:35:35 > 0:35:39# I'm getting better all the time... #
0:35:39 > 0:35:41'Well, better-ish!
0:35:41 > 0:35:44'The bathroom needs updating and it might be worth considering
0:35:44 > 0:35:48'knocking the bathroom and toilet into one.
0:35:48 > 0:35:50'The four bedrooms are pretty good.
0:35:50 > 0:35:53'There are some clues to the age of this house
0:35:53 > 0:35:57'and signs that there may be more behind the plasterwork.
0:35:57 > 0:36:00'So, at last, I'm getting quite excited.
0:36:00 > 0:36:03'And if that wasn't encouraging enough,
0:36:03 > 0:36:06'there seems to be more than meets the eye.'
0:36:06 > 0:36:09- CHUCKLES - This is an unexpected find!
0:36:09 > 0:36:13You've got the house itself and this little cupboard alley there.
0:36:13 > 0:36:18Then you come into this, which I imagine was storage in the past.
0:36:18 > 0:36:24But this, to me, has almost as much potential as the house.
0:36:24 > 0:36:27You've got this bit here, but then the really exciting thing
0:36:27 > 0:36:29is up there.
0:36:29 > 0:36:32Look at the head height!
0:36:32 > 0:36:37Clearly, this won't have permission to be somewhere you could live,
0:36:37 > 0:36:40but I reckon...a planner would look at it favourably.
0:36:40 > 0:36:47In which case, this... is a whole new opportunity.
0:36:47 > 0:36:50# Don't hurry away
0:36:50 > 0:36:55# Suddenly you've got what it takes
0:36:55 > 0:36:59# I believe
0:36:59 > 0:37:03# You can be what you want to be... #
0:37:03 > 0:37:07'So, potentially, a whole new property is hidden away.
0:37:07 > 0:37:12'With ready access from the back, it could be a separate flat or annexe.
0:37:12 > 0:37:15'One word of caution, though.
0:37:15 > 0:37:19'It IS in a conservation area, so there may be restrictions on it.
0:37:19 > 0:37:22'Even so, what a bonus!
0:37:25 > 0:37:29'We asked a local estate agent for her thoughts on the place.'
0:37:30 > 0:37:37I actually like the space as it is, downstairs. I like the idea...
0:37:37 > 0:37:42of having the three reception rooms and the kitchen.
0:37:42 > 0:37:46But with regards to the workshop, I think you could do something,
0:37:46 > 0:37:49subject to planning permission,
0:37:49 > 0:37:52and possibly create an annexe with it.
0:37:54 > 0:37:58'The property went to auction with a guide price of £110,000-plus.
0:37:58 > 0:38:02'Once done up, what could it fetch on the resale market?'
0:38:02 > 0:38:05I believe once the works had been done,
0:38:05 > 0:38:08providing there was something done on the workshop,
0:38:08 > 0:38:12it could be somewhere in the region of 140.
0:38:12 > 0:38:15'How about possible rental returns?'
0:38:15 > 0:38:21The main house, I believe that the rental figure would be in the region of £700 per calendar month.
0:38:21 > 0:38:25If you were able to get planning permission to convert the studio,
0:38:25 > 0:38:30I believe you'd get rental for £300 to £350 per calendar month.
0:38:31 > 0:38:35Parking's a bit of a nightmare and this road is quite busy,
0:38:35 > 0:38:38but this could still be someone's dream project.
0:38:38 > 0:38:44It's a lot of house for the money and you've got that bit out the back, with all its potential.
0:38:44 > 0:38:47Who fancied it? Let's find out when it went under the hammer.
0:38:51 > 0:38:55Lot 11. It's a four/five bedroom house over two floors.
0:38:55 > 0:38:57Anybody like to start at 105?
0:38:57 > 0:39:01105 at the back here? 105, OK. 105, thank you.
0:39:03 > 0:39:05110? 110.
0:39:05 > 0:39:08115? 115?
0:39:08 > 0:39:10Yup. 120, then?
0:39:11 > 0:39:15No? OK. What about something in between?
0:39:15 > 0:39:19115 we've got. We'll say 117 and a half?
0:39:19 > 0:39:21120, then?
0:39:21 > 0:39:23117 and a half here. 120?
0:39:24 > 0:39:28I did help him. I'll help you. What about 119?
0:39:28 > 0:39:30119? Yeah? 119.
0:39:30 > 0:39:33120? Or a half?
0:39:33 > 0:39:35119 and a half. 120, now?
0:39:36 > 0:39:39He's here at 119 and a half. 120?
0:39:39 > 0:39:43No? You're done? Here now at £119,500.
0:39:45 > 0:39:51'So, for £119,500, this Paignton house was bought by local man, Jim.
0:39:53 > 0:39:58'He runs a photo processing and printing firm in the town.
0:39:58 > 0:40:01'I met him at his new purchase to find out more.'
0:40:01 > 0:40:05- Jim, congratulations.- Thank you. - Nice to meet you.- And you.
0:40:05 > 0:40:07So, why did you want to buy it?
0:40:07 > 0:40:12Well, it's another property going on the portfolio. It's a pension fund.
0:40:12 > 0:40:16It's going to be let out. I was told to look for a three/four bedroom house.
0:40:16 > 0:40:20You were told to look for a three/four bedroom. By who?
0:40:20 > 0:40:25- By a friend of mine who's a letting agent.- You were advised to look for three or four bedrooms.
0:40:25 > 0:40:29This is four to five, depending on whether you use the room downstairs.
0:40:29 > 0:40:34I think just keep it as bedrooms upstairs. It's a great living space, but five bedrooms?
0:40:34 > 0:40:37No, I think let it as a four-bedroomed tops.
0:40:38 > 0:40:42'Jim has a clear vision of what he wants from this place.
0:40:42 > 0:40:46'For him, it's about how he feels about a house when he walks in.'
0:40:47 > 0:40:51# Quivers down my back bone
0:40:51 > 0:40:54# I've got the shivers down the thigh bone
0:40:55 > 0:40:57# Yeah, tremors in my back bone
0:41:00 > 0:41:02# Shakin' all over #
0:41:02 > 0:41:06I get wobbly knees sometimes. I think, "I want to buy this one."
0:41:06 > 0:41:10- Wobbly knees?- Yes. Like when I'm buying old cars.
0:41:10 > 0:41:13I see wobbly knees and I go and buy the car!
0:41:13 > 0:41:17- Wobbly knees in a good way? - In a good way, yeah.
0:41:17 > 0:41:20- Like butterflies in tummy kind of wobbly knees?- No, no.
0:41:20 > 0:41:24I just like it and think it's got a lot of character, potential.
0:41:24 > 0:41:28- I enjoy tinkering. I like things I can hit with hammers.- OK.
0:41:28 > 0:41:33- So is this house going to be hit with a hammer?- Not too badly, no.
0:41:33 > 0:41:36Yeah, the chimney stack needs doing.
0:41:36 > 0:41:41I think it's going to be a matter of decorators in to decorate top to bottom.
0:41:41 > 0:41:45- What about bringing some character back?- Difficult, isn't it?
0:41:45 > 0:41:49Unfortunately, the floors are nice wooden floors.
0:41:49 > 0:41:52Lovely parquet flooring downstairs. I did like that room.
0:41:52 > 0:41:58It's 1930s, '40s style. I thought that's got a lot of character to it.
0:41:58 > 0:42:00Very difficult.
0:42:00 > 0:42:04You saw the sliding doors. They're awful. They're coming out.
0:42:04 > 0:42:08I'm going to put ordinary doors in, help improve the character.
0:42:08 > 0:42:12- The kitchen, what are you going to do with that? - It could do with replacing.
0:42:12 > 0:42:17To be honest with you, I'd rather get the house in a livable state.
0:42:17 > 0:42:23Because if you let it to somebody, then you put a kitchen in, in say, 12 months' time,
0:42:23 > 0:42:28if you get a good tenant, they'd be more than happy to see you're investing in the property.
0:42:28 > 0:42:31Very much viewing it as a letting property,
0:42:31 > 0:42:35- not spending too much on it, personalising it.- No.
0:42:35 > 0:42:39It's got to be kept as commercially viable, I think is the word.
0:42:39 > 0:42:41What's the budget for the work?
0:42:41 > 0:42:44I'd say anything between 10,000 to 15,000.
0:42:44 > 0:42:48'A £10,000 to £15,000 budget could just about get this property
0:42:48 > 0:42:51'up and running for the rental market.
0:42:51 > 0:42:56'Of course, it wasn't just the main house that Jim acquired.'
0:42:56 > 0:43:01- What about the bit at the back? - That's actually quite exciting.
0:43:01 > 0:43:05- Yes, it is.- It's potentially, I think, a studio flat.- Oh!
0:43:05 > 0:43:10It could be a nice little studio flat later. There is rear access.
0:43:10 > 0:43:13So it will be locked off and be kept separate.
0:43:13 > 0:43:17I think 12 months down the line we'll look at that and revisit.
0:43:17 > 0:43:22It is a conservation area, so I'd have to get in touch with the council before I do anything.
0:43:22 > 0:43:24Let's see what they've got to say.
0:43:24 > 0:43:29Put some staircases in and stuff, but the roof lends itself perfectly.
0:43:29 > 0:43:32It's perfect. There's a 60-degree pitch on that roof.
0:43:32 > 0:43:34It's quite a steep pitch,
0:43:34 > 0:43:38but the galvanised steel doesn't lend itself to much, does it?
0:43:38 > 0:43:42It needs a new roof, there's no two ways about it.
0:43:42 > 0:43:47My son's a carpenter so I might give him a challenge.
0:43:47 > 0:43:52- What's the time scale for getting this house sorted? - I reckon two to three months.
0:43:52 > 0:43:55- Are you going to get your hands dirty?- I might do.
0:43:55 > 0:43:59I've got my son coming to do the doors. I have to supervise him.
0:43:59 > 0:44:03- Good luck. Look forward to seeing how you get on.- Thanks very much.
0:44:05 > 0:44:09I think Jim's wobbly knees have led him to a really good property.
0:44:09 > 0:44:12It's even bigger than he needed.
0:44:12 > 0:44:15Lots of work to be done, but once it is completed,
0:44:15 > 0:44:17I think a good little earner.
0:44:17 > 0:44:20You can find out how he gets on later in the show.
0:44:23 > 0:44:29Making the correct design decisions on a property can make a huge difference to your potential profit.
0:44:29 > 0:44:32It's exciting transforming your ideas into a reality.
0:44:32 > 0:44:36- But did our buyers get it right? - Let's find out.
0:44:38 > 0:44:40'And so we return to East Ham, London,
0:44:40 > 0:44:45'and this mid terrace property which Selma bought at auction for 250,000.
0:44:47 > 0:44:50'The property appeared to be laid out as two flats
0:44:50 > 0:44:52'with two bathrooms and two kitchens.
0:44:52 > 0:44:58'She planned to spend three weeks and 10,000 turning the mid-terrace back into a house
0:44:58 > 0:45:01'to rent out either to a family or as an HMO,
0:45:01 > 0:45:04'a house in multiple occupation.
0:45:04 > 0:45:07'And although she didn't view it before the auction,
0:45:07 > 0:45:10'Selma could see the potential in this place.'
0:45:10 > 0:45:14It's the space, the structure, the building.
0:45:14 > 0:45:18The character, that's what I like. These are the few things.
0:45:18 > 0:45:24I think anybody to go in an auction, especially people who've done it a few times, an amateur,
0:45:24 > 0:45:30three things, I think, is to have conviction, courage and confidence to do that.
0:45:30 > 0:45:33- You think you've got the three Cs? - I think so!
0:45:33 > 0:45:37- That's what I call it, the three Cs. Yes.- I love that!
0:45:37 > 0:45:41'Six weeks after our first visit,
0:45:41 > 0:45:45'we're back to see if those three Cs have been Selma's USP.
0:45:45 > 0:45:49'Has she gone OTT with the TLC on the HMO?
0:45:49 > 0:45:55'Or has her GSOH gone MIA? LOL!'
0:45:55 > 0:45:58MUSIC: "D.I.S.C.O." by Ottawan
0:46:24 > 0:46:28'PDG and PDQ, Selma!
0:46:28 > 0:46:32'Although a couple of disco balls wouldn't have gone amiss.
0:46:33 > 0:46:37'Selma had a plan and she's more or less kept to it.'
0:46:37 > 0:46:41The plan is let it out, so I'm still looking into options,
0:46:41 > 0:46:46if it's going to be an HMO or a whole family.
0:46:46 > 0:46:48There is a lot of interest.
0:46:48 > 0:46:53Even had neighbours knocking on the door. They want to buy the property.
0:46:53 > 0:47:00Which is good news. I'm not going to sell it, but it's great to see I haven't made a huge mistake!
0:47:02 > 0:47:04'This has been a bit of a learning curve for Selma.
0:47:04 > 0:47:07'In order to keep her options open,
0:47:07 > 0:47:10'she's had to comply with the regulations for HMOs.
0:47:10 > 0:47:14'These include installing fire doors and fire alarms.
0:47:14 > 0:47:17'If you want to create an HMO, there are all sorts of requirements,
0:47:17 > 0:47:21'ranging from fire safety to facilities you have to provide.
0:47:21 > 0:47:27'You must speak to your Local Authority first to make sure you get it right.
0:47:27 > 0:47:31'Selma's very pleased with the new layout here.'
0:47:31 > 0:47:33This was basically a blank space.
0:47:33 > 0:47:37Nor was it a living, nor was it a kitchen, nor was it a dining room.
0:47:37 > 0:47:41The kitchen was actually in this smaller room.
0:47:41 > 0:47:46So we turned it into a room. It could be a bedroom, if it's an HMO.
0:47:46 > 0:47:49If it's a family home, it could be a diner.
0:47:49 > 0:47:51Then moved the kitchen and diner here.
0:47:51 > 0:47:54I am really pleased how this turned out.
0:47:54 > 0:47:58It makes it bright, spacious, fabulous.
0:47:58 > 0:48:03'It's certainly a big improvement on what was here before.
0:48:03 > 0:48:09'Selma's been busy with her day job as an area manager for a large supermarket chain.
0:48:09 > 0:48:14'She and her builder have been working on another property at the same time as this one,
0:48:14 > 0:48:16'so she's a little behind on her schedule.
0:48:16 > 0:48:21'But has she managed to stick to her £10,000 budget?'
0:48:21 > 0:48:24I think it was a bit of wishful thinking.
0:48:24 > 0:48:27It exceeded by a couple of thousand pounds.
0:48:27 > 0:48:29Roughly around 12,000.
0:48:29 > 0:48:32That includes all the fees that I had to pay,
0:48:32 > 0:48:35and the builders and materials cost.
0:48:35 > 0:48:40When you take that into consideration and the work that's been done, the state it was in
0:48:40 > 0:48:42and now where it is at the moment,
0:48:42 > 0:48:46I think, you know, it's a pretty good job.
0:48:48 > 0:48:54'A £12,000 renovation cost on top of her purchase price of 250,000
0:48:54 > 0:48:59'brings Selma's total spend here to £262,000.
0:48:59 > 0:49:03'We asked two local estate agents their take on this refurbishment.
0:49:03 > 0:49:07'First up, the one who saw it the first time round.'
0:49:08 > 0:49:12It's been refurbished to a reasonable standard.
0:49:12 > 0:49:15Um...much better than before!
0:49:15 > 0:49:20The kitchen space is great. The way they've utilised that area is good.
0:49:20 > 0:49:24It's big enough to live and potentially dine in as well.
0:49:24 > 0:49:26It's a good use of space.
0:49:28 > 0:49:31'If Selma were to put the renovated property on the resale market,
0:49:31 > 0:49:34'what do they think it could fetch?'
0:49:34 > 0:49:44If we were to put it up for sale, we can achieve around £275,000 and £285,000.
0:49:44 > 0:49:47If this property was up for sale in this current market,
0:49:47 > 0:49:51we can easily achieve between £285,000 to £290,000.
0:49:53 > 0:49:57'Those resale valuations would mean a profit before tax and expenses
0:49:57 > 0:50:01'of between 13,000 and 28,000.
0:50:01 > 0:50:06'What kind of return could Selma get here, either by renting it to sharers as an HMO
0:50:06 > 0:50:09'or letting the whole house to a single family?'
0:50:11 > 0:50:14If the house would be rented out per room,
0:50:14 > 0:50:21then I would suggest a price between £350 and £400 per calendar month.
0:50:21 > 0:50:25If it would be rented out as a house,
0:50:25 > 0:50:28we can achieve around £1,400 per calendar month.
0:50:28 > 0:50:32I think if you were to rent this house out as room lets,
0:50:32 > 0:50:36the smaller room upstairs you can get around 350 per calendar month.
0:50:36 > 0:50:41With the bigger rooms, you're looking at £550 per calendar month.
0:50:41 > 0:50:47As a whole house, I think you can easily achieve around £1,400 per calendar month.
0:50:47 > 0:50:51'Since filming, Selma's decided to let the whole house out
0:50:51 > 0:50:55'through an estate agent for £1,700 per calendar month.
0:50:55 > 0:50:58'That gives her a yield of almost 8%.
0:50:58 > 0:51:02'Is that enough to tempt her back to an auction any time soon?'
0:51:02 > 0:51:07If I had the funds, I would go tomorrow to auction, but I haven't got the funds.
0:51:07 > 0:51:09So I have to wait, unfortunately.
0:51:09 > 0:51:13Apart from that, I definitely will have a break because I need a break.
0:51:18 > 0:51:23'It was in the Devon seaside town of Paignton, just off the High Street,
0:51:23 > 0:51:27'that we saw this four to five bedroom Georgian terraced house.
0:51:27 > 0:51:30'Although sadly lacking in character features,
0:51:30 > 0:51:34'it made up for that by the amount of space.
0:51:34 > 0:51:37'There were three reception rooms and a kitchen downstairs.
0:51:37 > 0:51:42'Plus four bedrooms, a bathroom and separate toilet upstairs.
0:51:42 > 0:51:45'And there was an added bonus, as attached to the back
0:51:45 > 0:51:50'was an old workshop space which had the potential to be an annexe
0:51:50 > 0:51:52'or self-contained flat.
0:51:52 > 0:51:55'However, there was no central heating, no garden and no parking.
0:51:55 > 0:52:00'But local businessman Jim had a good feeling about it.'
0:52:02 > 0:52:04# Quivers down my back bone
0:52:05 > 0:52:08# Yeah, shakes in the knee bone
0:52:09 > 0:52:12# I've got the tremors in the thigh bone
0:52:14 > 0:52:17# Shakin' all over... #
0:52:17 > 0:52:22I get wobbly knees when I see things sometimes. I think, "OK. I want to buy this one."
0:52:22 > 0:52:25Wobbly knees in a good way? Not butterfly in the tummy kind?
0:52:25 > 0:52:31No, no. I just like it. I think it has a lot of character and potential.
0:52:33 > 0:52:38'Having paid £119,500 for this knee-trembler of a property,
0:52:38 > 0:52:42'Jim planned to prepare the main house for the rental market
0:52:42 > 0:52:46'and was going to leave the workshop for a later date.
0:52:46 > 0:52:51'He hoped to do the work in two to three months on a budget of 10,000 to 15,000.
0:52:54 > 0:52:56'Now, just under two months later,
0:52:56 > 0:52:59'we're back to check on the project.'
0:52:59 > 0:53:03MUSIC: "Getting There" by Mari Wilson
0:53:22 > 0:53:27I've been busy at work and I haven't been able to keep my finger on the pulse here
0:53:27 > 0:53:31and spend the time I wanted to here, so we're behind schedule.
0:53:34 > 0:53:39Rome wasn't built in a day, was it? You've got to take your time.
0:53:47 > 0:53:50'So, not quite as much progress as Jim hoped.
0:53:50 > 0:53:55'He has sorted out damp problems by having the chimney rebuilt.
0:53:55 > 0:54:00'Other than that, it's been a case of preparing and painting the rooms.
0:54:00 > 0:54:02'And then what?'
0:54:02 > 0:54:06The bathroom, I'm going to get some wall cladding, rather than tiles.
0:54:06 > 0:54:10It's so much faster to put up and it looks very smart.
0:54:10 > 0:54:14I'm not going to replace the kitchen at all.
0:54:14 > 0:54:17I will be just going in and cleaning the kitchen area.
0:54:17 > 0:54:20I may look at new worktops. I'm not sure.
0:54:20 > 0:54:24With all the ceilings being a bit of a mess, we've had to go through
0:54:24 > 0:54:26and I'm having them Artexed.
0:54:26 > 0:54:32It may not be everyone's idea, but it's a great way of doing it quickly and realistically priced.
0:54:32 > 0:54:36I don't bother about ceilings. Do you look at the ceiling often?
0:54:36 > 0:54:40# Oh, what a feeling
0:54:40 > 0:54:43# When we're dancing on the ceiling... #
0:54:43 > 0:54:46'He's right, it won't be to everyone's taste,
0:54:46 > 0:54:48'but Jim is preparing this as a rental property
0:54:48 > 0:54:52'and is determined to keep his costs down.
0:54:52 > 0:54:54'Carpets and flooring need to be sorted.
0:54:54 > 0:54:58'There's also the small matter of the workshop space.'
0:54:58 > 0:55:03I've got a friend who's an architect who's doing some drawings for me.
0:55:03 > 0:55:05I'd like to reverse it round.
0:55:05 > 0:55:09Have a steel staircase on the outside taking you to the first level.
0:55:09 > 0:55:12Then have a spiral staircase on the inside going down
0:55:12 > 0:55:16to a bedroom and bathroom below.
0:55:16 > 0:55:19That will be next year before we're ready to go on that.
0:55:19 > 0:55:22I have found a nice bit of wood rot in there.
0:55:22 > 0:55:26It was interesting going up top, there was a section saying
0:55:26 > 0:55:29the roof was painted in November 1941.
0:55:29 > 0:55:32LAUGHING: It's showing the history of the building.
0:55:35 > 0:55:37'Jim will need planning permission
0:55:37 > 0:55:41'to convert this historic bit of the property into living accommodation.
0:55:41 > 0:55:44'For now, he wants to get this house earning its keep
0:55:44 > 0:55:48'and stick to his £10,000 to £15,000 budget.'
0:55:51 > 0:55:55I'm well in budget at the moment, in the region of about five and a half.
0:55:55 > 0:55:58By the time I've finished, I think, under ten.
0:55:58 > 0:56:01So it's reasonable.
0:56:01 > 0:56:05I can't see us spending 10,000. I think 8,500's more like it.
0:56:07 > 0:56:13'£8,500 on top of the purchase price of £119,500
0:56:13 > 0:56:17'will take Jim's total outlay to £128,000.
0:56:17 > 0:56:20'What do two local estate agents think?'
0:56:21 > 0:56:25He's brightened up the property by redecorating.
0:56:26 > 0:56:29It looks like he's about to do something outside
0:56:29 > 0:56:31because he's taken the shutters off.
0:56:31 > 0:56:34Let's see what happens from there.
0:56:35 > 0:56:38I'd have liked to have seen the kitchen updated.
0:56:38 > 0:56:43That would have given it a little bit more character.
0:56:43 > 0:56:45The kitchen's very modern.
0:56:45 > 0:56:48'I think it's a shame the kitchen isn't being done,
0:56:48 > 0:56:55'but will that reflect on the current value of the house Jim spent £128,000 on?'
0:56:55 > 0:57:00In the current market, I believe that this property would be worth around £130,000.
0:57:00 > 0:57:06The value today, I would say we would market it around £125,000 to £130,000.
0:57:08 > 0:57:11'So, Jim hasn't added much sale value,
0:57:11 > 0:57:14'but it's the rental returns he's more interested in.'
0:57:14 > 0:57:19The property would rent for around £650 per calendar month.
0:57:19 > 0:57:25The rental value for this property I would put at around £750 to £800 per calendar month.
0:57:25 > 0:57:28The 750, 800 matches what we've been told.
0:57:28 > 0:57:31I think 650 is too low.
0:57:31 > 0:57:34We certainly wouldn't be renting at that sort of level.
0:57:35 > 0:57:39'If Jim does get £750 per calendar month,
0:57:39 > 0:57:42'that would generate a rental yield of around 7%.
0:57:42 > 0:57:46'Then, of course, there's still the workshop space to tackle.
0:57:46 > 0:57:49'Will he still go ahead with that?'
0:57:49 > 0:57:52Most definitely. Yes. It just takes time.
0:57:52 > 0:57:55Let's get the main building going first,
0:57:55 > 0:58:00then we can look at that without too much pressure on, shall we say?
0:58:00 > 0:58:02Focus. Finish one. Then to the next.
0:58:05 > 0:58:09We hope you've enjoyed our insight into the world of auctions.
0:58:09 > 0:58:13- Join us next time for more Homes Under The Hammer. Goodbye.- Goodbye.
0:58:17 > 0:58:21Subtitles by Red Bee Media Ltd
0:58:21 > 0:58:24E-mail subtitling@bbc.co.uk