0:00:02 > 0:00:08Despite all the doom and gloom in the news, the property market can still be a good place to invest.
0:00:08 > 0:00:13- But it's important to be very cautious and do your homework.- Yes.
0:00:13 > 0:00:17And one way you can potentially benefit is buy your home under the hammer.
0:00:43 > 0:00:49If you're looking for variety and good value, an auction house may be the place just for you.
0:00:49 > 0:00:54And here are the properties that lured our buyers to the auctions on today's show.
0:00:55 > 0:01:01Roll up, roll up. There's a house near the sea in Devon with a guide price of just 70,000 quid.
0:01:01 > 0:01:05Find out who snapped it up at auction.
0:01:05 > 0:01:09Whereas in Derbyshire, this house shows signs of a colourful past,
0:01:09 > 0:01:14but the guide price of £54,000 proved very tempting.
0:01:15 > 0:01:21And in Streatham, London, I have only one thing to say about this two-bed flat.
0:01:21 > 0:01:23Now this is fantastic!
0:01:27 > 0:01:32All these properties have been sold at auction and we'll find out who bought them
0:01:32 > 0:01:35- when they went under the hammer. - Sold!
0:01:39 > 0:01:42This is Paignton in Devon,
0:01:42 > 0:01:47an absolutely beautiful seaside resort on the so-called English Riviera.
0:01:47 > 0:01:53It's been a popular holiday spot since Victorian times and I used to come here on my holidays
0:01:53 > 0:02:00as a child. It's gorgeous. A fantastic place to live, which is why I'm excited about today's lot.
0:02:00 > 0:02:05Childhood holiday destinations often hold a special place in your heart.
0:02:05 > 0:02:12Paignton has many wonderful memories for me - paddling in the sea, eating ice cream
0:02:12 > 0:02:14and wandering round the harbour.
0:02:14 > 0:02:21Fast forward...hmm...years and it's no longer just the sea that I've come to visit.
0:02:23 > 0:02:27I know we don't get sunshine all the time in Britain,
0:02:27 > 0:02:34but the property I'm here to see would brighten anyone's day. It's this fantastic canary yellow colour.
0:02:34 > 0:02:40More than that, it's this end of terrace, three-bed, guided at £70,000. Almost too good to be true,
0:02:40 > 0:02:46especially when similar houses in this street sold for a lot more.
0:02:46 > 0:02:51'In fact, a nearby house on this pleasant street sold fairly recently for £140,000.
0:02:51 > 0:02:58'So that £70,000 guide price sounds too good to be true. Am I about to find out why?'
0:02:58 > 0:03:03Straight through the front door and stairs are wonky,
0:03:03 > 0:03:08there's cracks in the ceiling and in the wall there. And...
0:03:08 > 0:03:14the moment you come into any of the rooms, you notice something I didn't notice from outside.
0:03:14 > 0:03:20Things do not seem to be at all right with this place.
0:03:20 > 0:03:25The walls are, seemingly, quite slopey. You can see angles of window frames.
0:03:25 > 0:03:31Yes. Oh, my word. As you come over to this side, to the rear living room,
0:03:31 > 0:03:36the floor - better not do that too much - sinks considerably.
0:03:36 > 0:03:40This isn't looking... good at all.
0:03:40 > 0:03:44Through into the kitchen and again doorframes all over the place.
0:03:44 > 0:03:46Oh, my word.
0:03:49 > 0:03:53I'm slightly lost for words here. This is...
0:03:53 > 0:03:57one of the worst cases of, um, well,
0:03:57 > 0:04:02the word begins with an S and ends with "ubsidence".
0:04:02 > 0:04:06We are talking about serious structural issues. At the back,
0:04:06 > 0:04:12this pebble dash effect has been either taken off or has fallen off, to reveal bricks with cracks.
0:04:12 > 0:04:19Over this side, such pressure on the property that the bricks themselves have cracked.
0:04:19 > 0:04:25I spelt it out, but let me make it perfectly clear. This place...is subsiding.
0:04:25 > 0:04:27Badly.
0:04:27 > 0:04:34All those structural problems do explain that low guide price of 70,000.
0:04:34 > 0:04:39Anyone taking this on would be wise to get a full structural survey
0:04:39 > 0:04:46and be prepared to spend a bit on underpinning, unless they want to own a pricey pile of dust.
0:04:46 > 0:04:50This terrible terrace may just be more trouble than it's worth.
0:04:50 > 0:04:53# Trouble, trouble
0:04:55 > 0:04:58# Trouble, trouble, trouble... #
0:04:58 > 0:05:04It definitely makes you feel a bit queasy when you look at all the odd angles.
0:05:04 > 0:05:08The wavy floors don't help and that end wall is wonky.
0:05:08 > 0:05:12It's not just the subsidence. It's, well...everything!
0:05:12 > 0:05:19The renovation here will require building expertise and cash and lots of it.
0:05:19 > 0:05:23This is no project for a plucky amateur.
0:05:23 > 0:05:26So, upstairs what do we find? Much of the same.
0:05:26 > 0:05:33Three bedrooms - a small room there, a double at the front and a fair-sized double at the back.
0:05:33 > 0:05:38You've got a family-sized bathroom. That's good. As you might expect,
0:05:38 > 0:05:44the rooms are the same in terms of problems - cracks, uneven floors, a bit of a nightmare,
0:05:44 > 0:05:50but let's try and be logical about this. Every house, no matter what state it's in,
0:05:50 > 0:05:56has some kind of a value. Get it at the right price and you'll still have a reasonable investment.
0:05:56 > 0:06:02However, that's great for rental, but when it comes to reselling it, you've got a few problems.
0:06:02 > 0:06:09Number one, stigma. No matter what you do, people will be thinking this was a house with subsidence.
0:06:09 > 0:06:17Number two, insurance. The rates will go up the moment you declare it has had problems.
0:06:17 > 0:06:21Number three, mortgage. Mortgage companies are very fussy about this.
0:06:21 > 0:06:27Ask yourself - if somebody has the option of buying a house which hadn't had these historical issues
0:06:27 > 0:06:33versus this place which has, which one would you buy? Depending on the price.
0:06:33 > 0:06:40'It might be that you wouldn't take this on at any price. You'd have to go in with your eyes open.
0:06:40 > 0:06:46'In fact, I reckon that £70,000 guide price may end up being far from a bargain.'
0:06:48 > 0:06:51# Trouble, trouble, trouble... #
0:06:53 > 0:06:58We asked a local estate agent for her opinion on the place.
0:06:58 > 0:07:02First impressions of the property,
0:07:02 > 0:07:08it's pretty looking from outside, with some work doing. All the others look pretty lovely.
0:07:08 > 0:07:11Ideal for a little family home.
0:07:11 > 0:07:18'In its current configuration and once all the remedial work has been finished,
0:07:18 > 0:07:24- 'how much could this property be worth?' - Based on what we know about it,
0:07:24 > 0:07:26the value's about £70,000, £80,000.
0:07:26 > 0:07:32Re-sale, once all the work's been done and it's been finished,
0:07:32 > 0:07:36probably you'd be looking at something in the region of £135,000.
0:07:36 > 0:07:39'And as a rental?'
0:07:39 > 0:07:44I think as a rental it would achieve something in the region of £650 per calendar month.
0:07:45 > 0:07:50Well, a property like this comes with a whole heap of what ifs.
0:07:50 > 0:07:56"What if the problem's worse than I thought? What if I can't get insured?"
0:07:56 > 0:08:02Still, if you're prepared and aware, it could still be a good one to go for. Let's go to the auction.
0:08:03 > 0:08:06A guide of £70,000 to start.
0:08:06 > 0:08:0960,000 to go. 60 now.
0:08:09 > 0:08:1160 here. 60,000.
0:08:11 > 0:08:14And one more, can we say? 61 now.
0:08:14 > 0:08:1661. And two.
0:08:16 > 0:08:1862,000. 63?
0:08:18 > 0:08:21Yeah. 63. Four? Four.
0:08:21 > 0:08:2665? It's here at 64. Looking for 65 now.
0:08:26 > 0:08:32Are you sure you're all done at £64,000. Seems very cheap for a three-bed house.
0:08:32 > 0:08:35At £64,000.
0:08:35 > 0:08:39OK, I'm going to move on from there. Turn the page, very close.
0:08:39 > 0:08:45'So the lot failed to reach its reserve price and was withdrawn, but a deal was done afterwards
0:08:45 > 0:08:47'for £71,000.
0:08:47 > 0:08:54'The brave purchasers are Darren on the left and his friend Adam.
0:08:54 > 0:09:01'Adam was going to buy a high-end sports car, but decided to invest in property with his friend instead.
0:09:01 > 0:09:05'The good news is that Darren is a quantity surveyor,
0:09:05 > 0:09:10'so this troublesome terrace is no doubt part of a well-planned project. Right?'
0:09:10 > 0:09:14Adam, Darren, great to meet you both. Congratulations.
0:09:14 > 0:09:21- So it didn't sell at the auction. What happened after that? - We had a beer and a chat.
0:09:21 > 0:09:26- 10 minutes later it was ours. - So you didn't intend to buy anything at the auction?
0:09:26 > 0:09:30No, just going down for a bit of a recce to see what it was like,
0:09:30 > 0:09:36- with a view to jumping in at some stage down the line, but not as quick as we did.- No.
0:09:36 > 0:09:41Buying blind is potentially not the best way to go, but...
0:09:41 > 0:09:46we actually went off and during our five minutes of research...
0:09:46 > 0:09:49- The pint drinking? - Yeah, pretty much.
0:09:49 > 0:09:53One sold down the road for £140,000 in April.
0:09:53 > 0:09:59And it can't cost £70,000 to get this straight, unless something's gone horrible wrong,
0:09:59 > 0:10:05so we thought if we get it for £70,000, it'll probably cost £40,000 to get it up and running.
0:10:05 > 0:10:11There's a little bit of profit in it. If it was a few hundred grand, we wouldn't touch it,
0:10:11 > 0:10:18- but £35,000 each is not a lot in respect of...- Well... - ..going completely pear-shaped.
0:10:18 > 0:10:23That's the way I look at it. That's how I sold it to him over a pint.
0:10:23 > 0:10:26You enjoy this. You're loving this.
0:10:26 > 0:10:33- I love a little bit of a gamble. - You're not fazed at all. You quite like taking a real flyer with this.
0:10:33 > 0:10:39- Yeah, it's not going to make... - He's bad news!- I know! - YOU are a quantity surveyor!
0:10:39 > 0:10:41You're professionally trained!
0:10:41 > 0:10:45# Best friends at my back
0:10:45 > 0:10:48# Best friends... #
0:10:48 > 0:10:55'Well, with friends like these... But joking apart, the lads do know they've got a lot on their hands
0:10:55 > 0:11:00'and have taken on a really uphill task to make this place saleable.
0:11:00 > 0:11:07'They've commissioned an engineer to survey it and plans have been put in place for underpinning work.'
0:11:07 > 0:11:11Having been round, what have you discovered? And what's the plan?
0:11:11 > 0:11:16We've had the structural guy confirm that it suffers from subsidence.
0:11:16 > 0:11:21They didn't need to confirm it, did they? You see it as you drive up!
0:11:21 > 0:11:27- But he said it could have been the drains.- You're nearly in the next-door neighbour's garden!
0:11:29 > 0:11:33So the main thing is getting the underpinning sorted out.
0:11:33 > 0:11:37Once we're through that, it should be relatively straightforward.
0:11:39 > 0:11:44'Hm, but there can still be no underestimating the job here.
0:11:44 > 0:11:50'It's not just structural work. Everything needs to be done. They've got a budget of £40,000
0:11:50 > 0:11:55'and a timescale of just four months. Good luck with that!'
0:11:55 > 0:11:59Has there been a time where you've thought, "What have we done?"
0:11:59 > 0:12:06There's been moments when we've thought, "Crikey, there's a lot to do," but we've bought it now.
0:12:06 > 0:12:12If we'd borrowed hundreds of thousands, I'd be worried. And we would have looked at it.
0:12:12 > 0:12:19I don't think it'll be a massive... There might be a little bit of hassle, no doubt,
0:12:19 > 0:12:24- but I don't think... - I'll remind you of that. - I don't think it'll be that bad.
0:12:24 > 0:12:29Good. Great to meet you both. I wish you all the very best.
0:12:34 > 0:12:36Well, what can I say?
0:12:36 > 0:12:42That certainly was a surreal and expensive day out for Darren and Adam.
0:12:42 > 0:12:46"Whoops! We've bought a house that's heading for the neighbour's garden."
0:12:46 > 0:12:54Joking aside, there's lots to sort out, but you never know. And it will be an experience
0:12:54 > 0:13:00for this property-purchasing duo? Find out how they get on later in the show.
0:13:05 > 0:13:09I'm in Ripley in the Amber Valley area of Derbyshire.
0:13:09 > 0:13:15It's a traditional spot which has retained much of its local character,
0:13:15 > 0:13:21but it's also becoming a mecca for trendy tourists and those wanting an active nightlife.
0:13:21 > 0:13:28# I love the nightlife I've got to boogie On the disco 'round, yeah... #
0:13:28 > 0:13:33By day, Ripley's thronged with shoppers and visitors.
0:13:33 > 0:13:39In the evening, its pubs and restaurants are the draw for people living all around.
0:13:39 > 0:13:45With three big cities - Derby, Nottingham and Sheffield - it's very commutable.
0:13:45 > 0:13:48So Ripley attracts a lot of interest from buyers.
0:13:48 > 0:13:55Straight off, a bit of a negative because the property I'm here to see is on this busy main road,
0:13:55 > 0:13:59but Ripley does have scope for growth in terms of property prices,
0:13:59 > 0:14:04so maybe we'll forgive that bit and look at the house itself.
0:14:04 > 0:14:09It's a three-bedroom semi-detached at a guide price of £54,000 plus. Let's take a look.
0:14:09 > 0:14:15Normally I would go in through the front door. However, a little birdy has told me
0:14:15 > 0:14:21that's not going to be possible. You can find out why a little bit later.
0:14:21 > 0:14:28So it's down the side of the house to the back door for now. Not quite the entrance I was hoping for.
0:14:29 > 0:14:35So what have we got? Well, believe it or not, this is not a utility room.
0:14:35 > 0:14:37This is the kitchen.
0:14:37 > 0:14:42It's not the most auspicious of starts, is it?
0:14:42 > 0:14:49But through there into your lounge. Straight away I'm thinking you've got to play with the layout here.
0:14:49 > 0:14:56The good news, and bad news I guess, is that behind there is the loo and bathroom.
0:14:56 > 0:15:01And you've got this wall. So a tiny kitchen, a bathroom where you don't want it.
0:15:01 > 0:15:08Take that wall out. Rejig this whole area, maybe create an open-plan kitchen, living space.
0:15:08 > 0:15:14And try to move that bathroom upstairs. But I really like that nice aspect there
0:15:14 > 0:15:19with the patio doors. Dual aspect with double-glazed large window.
0:15:19 > 0:15:25And lots of space. And some very, very interesting decoration.
0:15:29 > 0:15:36'From ceilings and floors to walls, it's rather like a museum of past styles and designs,
0:15:36 > 0:15:39'in a rather groovy kind of way.
0:15:42 > 0:15:45'Flower power aside, the layout has some serious problems.
0:15:45 > 0:15:52'There's one mighty big lounge, one tiny weeny kitchen and that downstairs bathroom.
0:15:52 > 0:15:56'It just doesn't work. Then there's the small issue of getting in.'
0:15:56 > 0:16:02Now time to reveal why I couldn't get in through the front door.
0:16:04 > 0:16:05Yep.
0:16:06 > 0:16:10The floorboards... completely rotten. Not good.
0:16:15 > 0:16:21'Those floorboards are definitely not groovy and the electrics are a bad scene.
0:16:24 > 0:16:28'Upstairs, however, there are some encouraging signs.
0:16:29 > 0:16:35'There are three bedrooms. One is big enough to split up and house a bathroom.
0:16:35 > 0:16:39'And, yes, those flowery wallpaper designs are just as prevalent here.
0:16:39 > 0:16:44'But what about the area where you'd more normally expect to see an abundance of blooms?'
0:16:44 > 0:16:51Well, at the rear of the property you've got a garage and loads of sort of hard standing.
0:16:51 > 0:16:55If that was it, it would be a pretty good rear area.
0:16:55 > 0:16:58However, THIS is the garden!
0:16:58 > 0:17:04Absolutely outstanding. What? 30, 40... I don't know how many metres that is.
0:17:04 > 0:17:07What a great additional bonus.
0:17:07 > 0:17:14# I can see for miles and miles and miles and miles
0:17:14 > 0:17:17# And miles... #
0:17:19 > 0:17:25'The garden is out of sight, man! And the house is just begging for a rear extension
0:17:25 > 0:17:28'or a conservatory at least.
0:17:28 > 0:17:36'So despite being in a time warp, I think with some updating it could be really quite trendy again.
0:17:38 > 0:17:42'What does a local estate agent think of this three-bed house
0:17:42 > 0:17:45'that was guided at £54,000?'
0:17:47 > 0:17:49This property,
0:17:49 > 0:17:54from the outside, looks like a fairly normal semi-detached house on a nice-sized plot.
0:17:54 > 0:17:59You come inside and it's psychedelic. It's quite exciting.
0:17:59 > 0:18:05It's a lot of fun. Someone's obviously gone to a lot of trouble back in the day
0:18:05 > 0:18:11to design and style some interesting colours and wallpapers, but now it's really a project for somebody
0:18:11 > 0:18:17to modernise and bring up to date and probably simplify the decor.
0:18:17 > 0:18:21Yes, but what areas are key to maximising its potential?
0:18:21 > 0:18:27The bathroom needs to be brought upstairs, but still a third bedroom retained,
0:18:27 > 0:18:33so that probably means some kind of extension. A lot of neighbouring properties have done that.
0:18:33 > 0:18:36You'd get a much bigger kitchen area, three bedrooms and a bathroom.
0:18:36 > 0:18:44Would it be worth doing the additional work needed for a house that was guided at £54,000?
0:18:45 > 0:18:49If the existing property was renovated on the current footprint
0:18:49 > 0:18:54and the bathroom brought upstairs to create a two-bedroom semi,
0:18:54 > 0:18:58the ceiling price for that house in good order is around £125,000.
0:18:58 > 0:19:03If renovated and extended, with an extension to the side or the rear,
0:19:03 > 0:19:07to create quite a big three-bedroom house with more accommodation,
0:19:07 > 0:19:10in good order it could achieve £155,000.
0:19:10 > 0:19:14So there's plenty of scope for some re-sale profit.
0:19:14 > 0:19:19He also estimated a rental figure of £490 per calendar month
0:19:19 > 0:19:26as a two-bedroom, or £575 per calendar month as a three-bedroom property.
0:19:29 > 0:19:35So despite the proximity to the main road, a really good semi-detached house.
0:19:35 > 0:19:41It's all about the price you pay. Yes, there's work to be done, but there's money to be made.
0:19:41 > 0:19:45Let's find out who bought it when it went under the hammer.
0:19:47 > 0:19:52Lot 16. Three-bedroom, semi-detached house. Very pleasant location.
0:19:52 > 0:19:58Extensive views at the rear. Lots of scope for improvement. Three bedrooms, driveway, garage.
0:19:58 > 0:20:0458 to start me? 58? 58 I've got in two places. Thank you.
0:20:04 > 0:20:06At 59. 60,000.
0:20:06 > 0:20:1061. 62. It's here to be sold. 63.
0:20:10 > 0:20:14The bid's yours. 64. 65 at the back.
0:20:14 > 0:20:1666 seated here.
0:20:16 > 0:20:2166. 67? 67 I've got. 67. 68.
0:20:21 > 0:20:28This lot was proving to be very popular. We rejoin the bidding at £80,000.
0:20:28 > 0:20:30£80,000.
0:20:30 > 0:20:3280 and a half.
0:20:32 > 0:20:3481. 81,500.
0:20:34 > 0:20:3682.
0:20:36 > 0:20:3882,500.
0:20:38 > 0:20:4083. 500.
0:20:40 > 0:20:44I've taken the bid at the back. 84.
0:20:44 > 0:20:4784. Come in again, sir? 84,500?
0:20:47 > 0:20:50At £84,000. Once.
0:20:50 > 0:20:53Twice. Third time.
0:20:53 > 0:20:56Sold at 84,000. Well done.
0:20:56 > 0:21:00'So for £30,000 over the guide price, at £84,000,
0:21:00 > 0:21:05'the new owner of the three-bed semi-detached house is Paul.
0:21:05 > 0:21:11'I met him back at his new purchase to find out his plans.' Paul, good to meet you.
0:21:11 > 0:21:15- How are you?- Pretty good. Congratulations.- Thank you.
0:21:15 > 0:21:19- Tell me why you bought this place. - To do up, really.
0:21:19 > 0:21:25Well, it's a good challenge, this one. I look at it as a very good challenge.
0:21:25 > 0:21:30- What did you think when you walked in?- I thought, "Oh, my gosh!"
0:21:30 > 0:21:33But the decor... It shows it's original.
0:21:33 > 0:21:38It shows what was in fashion all them years ago.
0:21:38 > 0:21:41So you bought it to do it up and rent it out, sell it on?
0:21:41 > 0:21:47To do up, make a good job I hope and then move on to the next one.
0:21:47 > 0:21:53- Have you got much experience? - I've done properties in the past. This is the fourth on my own.
0:21:53 > 0:21:57- I'm an electrician by trade.- OK. - I do planning now.
0:21:57 > 0:22:03- I've got a team I use all the time, builders, plumbers. So we've got a good team.- Great.
0:22:03 > 0:22:07'Paul clearly has the skills to bring this house up to date
0:22:07 > 0:22:11'and if he doesn't know how to do it, he knows a man who can.
0:22:11 > 0:22:19'With three renovations under his belt, this shouldn't be too tricky for him.'
0:22:19 > 0:22:24- What do you think the biggest challenges will be? - This one, structural, I'd say.
0:22:24 > 0:22:29- There's going to be walls I want knocking down.- What are you planning?
0:22:29 > 0:22:35Knocking the walls down for downstairs and taking the bathroom upstairs.
0:22:35 > 0:22:41Make a big open-plan diner/kitchen. And then put two double doors in here to keep them separate.
0:22:41 > 0:22:47I hope I don't have to lose a bedroom. My idea is to take the bathroom upstairs,
0:22:47 > 0:22:54make a bedroom smaller, but I'll make the other bedroom bigger by taking the chimney breast out.
0:22:54 > 0:22:59- That way you've got a three-bed semi still.- Wow. Sounds like lovely plans you've got.
0:22:59 > 0:23:03Whether it works...! But that's my idea.
0:23:03 > 0:23:08'He hopes to carry out these great plans on a budget of £20,000-£30,000
0:23:08 > 0:23:12'and take roughly 12-16 weeks.
0:23:14 > 0:23:20'But before he can rejig the layout, there are some other issues to tackle.'
0:23:20 > 0:23:25- There's obvious signs of rot.- There is. There's no central heating. It's going to want damp proofing.
0:23:25 > 0:23:30It's all original cabling, so it'll want the full refurbishment.
0:23:30 > 0:23:36It's a good challenge, this property. I think it'll be a really nice place when it's done.
0:23:36 > 0:23:43- Congratulations. I hope it all goes to plan.- Thank you very much. - Look forward to seeing it.- Thanks.
0:23:43 > 0:23:49Well, Paul under no illusion that there is quite a lot of work to be done to sort this place out,
0:23:49 > 0:23:54but I really like what he's planning. It will really revolutionise this semi.
0:23:54 > 0:23:57Find out how he gets on later.
0:23:58 > 0:24:05'Coming up: find out how this flat in south-west London went from shabby to chic.
0:24:08 > 0:24:14'Back in Derbyshire, watch how fantastically Paul rose to the challenge of his refurbishment
0:24:14 > 0:24:18- 'and how much money he could make.' - I'm pleased with that.
0:24:19 > 0:24:23'But first - is it up? Is it down?
0:24:23 > 0:24:28'Have the lads cracked their perilous Paignton property?'
0:24:32 > 0:24:39'Paignton in Devon is a lovely seaside town with great beaches and shops.
0:24:39 > 0:24:45'It's a place to relax and unwind. What could be nicer than buying a property here?
0:24:45 > 0:24:51'How about a three-bed end-of-terrace with a bright, sunny colour outside,
0:24:51 > 0:24:55'space out the back and plenty of room downstairs?
0:24:55 > 0:25:01'It needed updating and perhaps a rethink on the layout, but otherwise tempting?
0:25:02 > 0:25:05'Or maybe not.'
0:25:14 > 0:25:18- It's subsiding. Badly. - TERRIFIED SCREAM
0:25:18 > 0:25:23'Despite its major drawback - and I mean major - Adam and Darren bought it,
0:25:23 > 0:25:27'without seeing it first, for £71,000.'
0:25:27 > 0:25:32Has there been a time when either of you thought, "What have we done?"?
0:25:32 > 0:25:38There's been moments when we thought, "Crikey! There's a lot to do," but we've bought it now.
0:25:38 > 0:25:44If we'd borrowed hundreds of thousands, I'd have been worried and we would have looked at it.
0:25:44 > 0:25:47I don't think it'll be a massive...
0:25:47 > 0:25:51There'll be a little bit of hassle, no doubt.
0:25:51 > 0:25:57- I'll remind you of that. - I don't think it'll be that bad. It'll be all right.
0:25:57 > 0:26:00'Hm. I wish I was as certain as Adam.'
0:26:00 > 0:26:03# Trouble, trouble... #
0:26:03 > 0:26:07'They hoped they could dig their way out with some underpinning,
0:26:07 > 0:26:13'hard work, a budget of 40 grand and an optimistic timescale of four months.'
0:26:13 > 0:26:16# Trouble, trouble... #
0:26:18 > 0:26:22'Now, 11 months later, we're back and the good news...
0:26:22 > 0:26:25'Well, the house is still standing and looks solid.
0:26:25 > 0:26:28'How did they achieve that?'
0:26:28 > 0:26:35- Piling.- It went down about five metres. A whole concrete slab and the house now sits on that
0:26:35 > 0:26:37instead of its original foundations.
0:26:37 > 0:26:42'Yes, this was about going backwards before they moved forwards.
0:26:42 > 0:26:49'There wasn't just a concrete slab put under the house. The front and gable walls had to be rebuilt.
0:26:49 > 0:26:54'It took five months to sort out the contractors and arrange the piling.
0:26:54 > 0:26:57'Then, at last, it could be put back together.
0:27:01 > 0:27:06'One advantage of taking it back to a shell was that they could adjust the layout
0:27:06 > 0:27:09'and really change the look and feel of the place.'
0:27:15 > 0:27:22Well, one of the biggest changes we've made is down here. There was a wall going across here.
0:27:22 > 0:27:25We've completely removed that.
0:27:25 > 0:27:30We also had just a door from the hallway and a door into the kitchen.
0:27:30 > 0:27:35That's all been opened up to give a real open-plan feel.
0:27:35 > 0:27:41We've in-filled the kitchen door and replaced it with French doors there just behind you.
0:27:41 > 0:27:44Yeah, we're really pleased with the feel.
0:27:44 > 0:27:48'This downstairs area definitely now has a better flow.
0:27:48 > 0:27:52'It really does seem like a new house
0:27:52 > 0:28:00'with new windows, doors, central heating, plumbing and wiring - the lot.
0:28:00 > 0:28:03'But what about upstairs?'
0:28:03 > 0:28:07The first floor is still original, but it had dropped significantly
0:28:07 > 0:28:12so when they took the walls down they lifted those floors up
0:28:12 > 0:28:18- and got them reasonably straight. - It's not all perfect. - Not perfect.
0:28:26 > 0:28:30'The bathroom's been brought bang up to date.
0:28:32 > 0:28:36'And they've retained the three bedrooms.
0:28:49 > 0:28:52'A great job, lads.'
0:28:55 > 0:28:59I looked after sorting out the building regs
0:28:59 > 0:29:04and the piling. And then we cracked on and did the building work.
0:29:04 > 0:29:08Between us, weekends and evenings and so on.
0:29:08 > 0:29:14It's not been an extremely smooth ride, I must say, but that'll happen if you do a full-time job
0:29:14 > 0:29:16and do work in the evenings.
0:29:17 > 0:29:24'Adam works for an air monitoring company and Darren's a quantity surveyor.
0:29:26 > 0:29:32'Although they employed builders for the structural work, they've put in the hours themselves,
0:29:32 > 0:29:38'hoping to prevent their £40,000 budget spiralling out of control. How much did they spend?'
0:29:38 > 0:29:45£55,000 and that is basically down to having to rebuild the front and side of the house.
0:29:45 > 0:29:50We always knew we were going to have to underpin it.
0:29:50 > 0:29:55The 15,000 quid is solely down to doing the front and side walls.
0:29:55 > 0:29:59'A £55,000 spend on top of their £71,000 purchase price
0:29:59 > 0:30:04'takes their total outlay to 126,000 quid.
0:30:04 > 0:30:11'So having practically rebuilt this house, have they improved the worth of their investment?
0:30:11 > 0:30:14'What do two local estate agents think?'
0:30:14 > 0:30:19I love the property. The changes really enhance what's already here.
0:30:19 > 0:30:23It's perfect to move into. They've done a really good job.
0:30:23 > 0:30:28The property has been refurbished to a very high standard.
0:30:28 > 0:30:31Very light and airy. A good contemporary feel.
0:30:31 > 0:30:37It's fantastic that it is now probably better than it was when first built.
0:30:37 > 0:30:43They've tackled the issue, sorted it out and won't have any problems going forward.
0:30:46 > 0:30:50'Darren and Adam aren't sure whether to let or sell this house,
0:30:50 > 0:30:57'but having invested £126,000 in it, what would give them the best return?'
0:30:57 > 0:31:02We would expect to achieve something in the region of £145,000.
0:31:02 > 0:31:07The price I would look at would be in the region of £150,000-£155,000.
0:31:07 > 0:31:12- Very much as expected, really. - Yeah. Not surprised, not shocked.
0:31:16 > 0:31:21'So a potential pre-tax profit of £19,000-£29,000.
0:31:21 > 0:31:23'Not too bad.
0:31:23 > 0:31:26'How would it fare as a rental?'
0:31:26 > 0:31:30This property would rent for £725 per calendar month.
0:31:30 > 0:31:35I would look at marketing anywhere between £700 and £750 per calendar month.
0:31:35 > 0:31:40I personally felt about £700 a month, so not too far out.
0:31:40 > 0:31:46'A rental value of £700 per calendar month would generate a yield of just over 6%.
0:31:46 > 0:31:49'Not spectacular, but OK.
0:31:50 > 0:31:56'And while the jury's out on what to do with this house, what plans do they have for the future?'
0:31:56 > 0:32:00We've bought another place in East Devon, actually.
0:32:00 > 0:32:06- Different kind of project altogether. - Yeah. So in quarter of an acre of land.
0:32:06 > 0:32:10Two-bedroom house. We'll knock down and look to build.
0:32:15 > 0:32:20'I'm in south-west London in the popular residential area of Streatham.'
0:32:22 > 0:32:26This part of Streatham is close to the shops on the high road,
0:32:26 > 0:32:28close to Streatham main line station
0:32:28 > 0:32:35and just down the road from Tooting Bec Common. So the location gets a tick.
0:32:35 > 0:32:42'It's a bit of a hike to the Tube from here, but there are plenty of buses into town
0:32:42 > 0:32:46'and a good train service to London Bridge.'
0:32:46 > 0:32:53So what am I here to see today? It's a first-floor two-bedroom flat in this modern, purpose-built block.
0:32:53 > 0:32:57It had a guide price at auction of £185,000 plus.
0:32:57 > 0:33:03The exterior looks in pretty good order. Let's just hope the interior matches up.
0:33:05 > 0:33:11'What this block may lack in character and charm, it makes up for with allocated parking spaces
0:33:11 > 0:33:15'and clean, tidy communal areas. Works for me.'
0:33:16 > 0:33:19Now this is fantastic.
0:33:19 > 0:33:23Wow. A great space here. All the rooms leading off.
0:33:23 > 0:33:29You've got a bathroom through there. So far, it doesn't look like you'd have to spend too much on this,
0:33:29 > 0:33:33but it's very open plan. It's got a wonderful flow to it.
0:33:33 > 0:33:40And this is how open-plan kitchen dining sitting rooms should be. I mean, look at this place.
0:33:40 > 0:33:46What I love is that you can't hear any traffic. Set back from the road. I don't care what anybody says.
0:33:46 > 0:33:49I think size does matter.
0:33:49 > 0:33:54# Size matters, size matters But not how you think... #
0:33:54 > 0:33:58'There really is plenty of space here and it's laid out pretty well.
0:33:58 > 0:34:05'The two bedrooms are both good-size doubles. One has an en suite shower, then there's that family bathroom.
0:34:05 > 0:34:13'So there are two loos and the kitchen/dining/living room is also a decent size.'
0:34:14 > 0:34:20This flat raises the old argument of buying new versus buying old.
0:34:20 > 0:34:24Buy a modern flat like this and the refurb costs will be low
0:34:24 > 0:34:31and it's a relatively hassle-free option. But buy old and you can add value by improving the property.
0:34:31 > 0:34:36With this flat, you can't extend, it's not worth rejigging the layout because it works as it is
0:34:36 > 0:34:43and the kitchen and bathroom don't really need replacing. So is there any room to add any real value?
0:34:43 > 0:34:47The best way to make money on this on is to do it up quick,
0:34:47 > 0:34:50spend the minimum and let it out fast.
0:34:50 > 0:34:57'The flat comes with a lease of 112 years and a ground rent of £200 per annum.
0:34:57 > 0:35:03'What does a local estate agent make of this place with its £185,000 guide price?'
0:35:03 > 0:35:10First impressions of the flat - it needs a little TLC in places, but could look quite nice.
0:35:11 > 0:35:15'Once done up, what could this flat rent out for?'
0:35:15 > 0:35:20Rental income would be around £1,300 per calendar month.
0:35:20 > 0:35:25'And if you did it up and sold it on?'
0:35:25 > 0:35:29If you do a basic spec, you'll achieve the lower end,
0:35:29 > 0:35:36around £250,000. If you go for the higher end, the wow factor, I'd expect around £275,000.
0:35:36 > 0:35:41When you buy property anywhere, location is key.
0:35:41 > 0:35:46This flat is close to the common, close to the shops and has great transport links.
0:35:46 > 0:35:52The flat itself needs only a minor refurbishment so you could slap some paint on it
0:35:52 > 0:35:56and get it back on the market and rent it out super quick.
0:35:56 > 0:36:00So was this a popular lot? Let's head to auction and find out.
0:36:02 > 0:36:06So a two-bed flat. Looks like a nice-looking block.
0:36:06 > 0:36:12I won't go below 180 on this. Anyone want to bid 180,000? Lot 137.
0:36:12 > 0:36:16180. 180 I've got, bidding.
0:36:16 > 0:36:18181.
0:36:18 > 0:36:20182. 183. 184.
0:36:20 > 0:36:27- 185, sir? 186. - 'These two battled away and the bidding crept up slowly.
0:36:27 > 0:36:31'We rejoin the action at 225,000.'
0:36:31 > 0:36:34225. 226.
0:36:34 > 0:36:36227.
0:36:36 > 0:36:41227. 228. Back to you, sir, at the front.
0:36:41 > 0:36:44228 I'm looking for. Yeah, 228.
0:36:44 > 0:36:46Behind you, 229?
0:36:46 > 0:36:48230. 230,000.
0:36:48 > 0:36:50231?
0:36:51 > 0:36:53231. 232?
0:36:53 > 0:36:56233. 234.
0:36:56 > 0:36:57235?
0:36:57 > 0:37:02No? If not, £234,000 for the first.
0:37:02 > 0:37:09234,000 for the second. 234 for the third and final time. All done. Sold, 234.
0:37:09 > 0:37:14'That successful bid of £234,000 was made by Alex.
0:37:14 > 0:37:21'He's a Swiss, German-born Oscar-nominated film producer, director and author
0:37:21 > 0:37:26'who has also turned his hand to property development. He's married to Amy, an architect,
0:37:26 > 0:37:30'and they have a two-year-old daughter, Coco.
0:37:35 > 0:37:41'Now Amy's been on this show before. We first met here when she was advising a client
0:37:41 > 0:37:45'who bought a flat with lots of period charm in Hampstead.
0:37:45 > 0:37:52'I met Alex, Amy and Coco back at the flat to find out more about this latest project.'
0:37:52 > 0:37:56Congratulations. Now, Amy, we've met before,
0:37:56 > 0:38:02- but you had a baby in your tummy. - I did.- And I'm spying that this is here!- Here she is!
0:38:02 > 0:38:06- Wow. You were doing up a property for somebody else then.- Yes.
0:38:06 > 0:38:12I was working with a lot of clients and advising them on what to buy and working on the architectural side.
0:38:12 > 0:38:15We decided to do it for ourselves.
0:38:15 > 0:38:18So, Alex, why did you think this was an ideal flat for you?
0:38:18 > 0:38:25We did a property up close by and got to know the market a bit. Then this one came up at auction.
0:38:25 > 0:38:31We thought, "It looks really good if we can get it for the right price." And here we are today.
0:38:31 > 0:38:36I'm surprised you two have got time to do any of this anyway.
0:38:36 > 0:38:42- Last time I saw you, you were busy with modelling and all sorts. Tell me about that.- Yes, Miss UK
0:38:42 > 0:38:47- and other crazy sporting activities along the way.- Showjumping.
0:38:47 > 0:38:53- Athletics, modern pentathlon and recently lots and lots of polo. - Really?- Yeah.
0:38:53 > 0:38:58- So is property developing the only thing you do?- It is now.
0:38:58 > 0:39:01I have a background in film and creative businesses.
0:39:01 > 0:39:05I've written a book and used to make movies,
0:39:05 > 0:39:10but I kind of found that all these creative things work well,
0:39:10 > 0:39:15but aren't possibly as exciting as the property market.
0:39:15 > 0:39:21So I met Amy many years ago, we ventured out together, and here we are doing properties now.
0:39:21 > 0:39:24So you guys have a lot going on!
0:39:26 > 0:39:31'These two certainly are very busy people. On top of everything else,
0:39:31 > 0:39:37'Amy has also managed to find time to appear on the TV show Gladiators as Siren,
0:39:37 > 0:39:42'but will there be any wailing or gnashing of teeth on this project?
0:39:42 > 0:39:46'Gladiators, ready!'
0:39:46 > 0:39:50So, Amy, tell me what you're going to do to this flat.
0:39:50 > 0:39:54I quite like that it's very open-plan, there's a good flow.
0:39:54 > 0:40:00There is. Luckily, we don't have to do any construction work. The rooms are great sizes as they are.
0:40:00 > 0:40:06It's going to be purely cosmetic. New floorboards, new paintwork, new kitchen appliances
0:40:06 > 0:40:12- and two brand-new bathrooms.- It seems like Amy has this completely under wraps. Is that right?
0:40:12 > 0:40:18She does, yeah. The way we work is we do a lot of homework when we purchase a property.
0:40:18 > 0:40:24With this one, we know the market in the area, so we know what a property of this size can achieve.
0:40:24 > 0:40:30And it came up at auction, we did our homework, set ourselves a price to go for at auction.
0:40:30 > 0:40:35And we hit the price, so we're hopefully within our budget.
0:40:35 > 0:40:42But I rely completely on Amy's expertise on the more nitty-gritty, interior design
0:40:42 > 0:40:46- and calculating costs. - So who will project manage?
0:40:46 > 0:40:49- Amy.- It's shared. - What did you say?
0:40:49 > 0:40:54- Amy. And you said it's shared. Interesting.- I was being diplomatic.
0:40:54 > 0:41:00We each have our own role. Alex deals with the estate agents and the legal side.
0:41:00 > 0:41:04I'll deal with the property on a weekly basis, the builders,
0:41:04 > 0:41:08and make sure it's looking in the correct condition at the end.
0:41:08 > 0:41:14- What sort of budget have you got for the work here?- There's been a lot of costs with the purchase,
0:41:14 > 0:41:18with the legals and buyer's costs incorporated in that.
0:41:18 > 0:41:23Construction, we've allowed 30,000 for the labour costs and all new materials.
0:41:23 > 0:41:27In total, we're close to 50 when you add all the bits and pieces.
0:41:27 > 0:41:33This one in particular had a lot of issues in it. There were a lot of conditions,
0:41:33 > 0:41:38a lot of hidden costs that were included later.
0:41:38 > 0:41:45So we kind of worked them halfway out, took a bit of a gamble, but I think we're OK now.
0:41:46 > 0:41:50'So with a £30,000 budget for renovating the flat,
0:41:50 > 0:41:55'Alex and Amy also anticipate another 20,000 for fees and taxes
0:41:55 > 0:41:59'with legal costs alone costing them £8,000.
0:41:59 > 0:42:05'Using their expertise, they'd prepared carefully and worked out costs in advance,
0:42:05 > 0:42:10'including a contingency because there will always be the unexpected.
0:42:10 > 0:42:15'I'm going to mention the H word again. Yes, that's homework.
0:42:15 > 0:42:19'This power couple have certainly done theirs.'
0:42:19 > 0:42:22How long do you think it'll take?
0:42:22 > 0:42:27Another issue we have to flag is that we have to borrow money at quite a high interest rate.
0:42:27 > 0:42:33We make profit if we can do it up very quickly, so we've set ourselves a goal of five weeks.
0:42:33 > 0:42:37- Five weeks to be in and out.- Wow!
0:42:37 > 0:42:43We have our team of builders ready and waiting. Everything's pre-ordered. It will be arriving
0:42:43 > 0:42:46the second day we get in here. They'll work on target.
0:42:46 > 0:42:52The hammer must have gone down and you started buying everything and organising your builders.
0:42:52 > 0:42:57- It's all done in the preparation. - Wow. I'm really excited to see what you do here.
0:42:57 > 0:43:01I can't wait to see your style and how you put your stamp on it.
0:43:01 > 0:43:06Amy, lovely to see you again. Alex, great to meet you. And Coco. High five?
0:43:06 > 0:43:09Wow! Fantastic! Good luck, guys.
0:43:09 > 0:43:14Well, this couple certainly like their fingers in a lot of pies.
0:43:14 > 0:43:20Alex is a filmmaker and novelist, Amy is an architect, former Miss UK, and a showjumper.
0:43:20 > 0:43:24On top of all that, they also property develop.
0:43:24 > 0:43:30They don't plan to do any major work here, but the timescale is still pretty tight, I'd say.
0:43:30 > 0:43:36They want this back on the market and sold, so will Alex and Amy get it done in time?
0:43:36 > 0:43:40You can find out how it goes later in the programme.
0:43:43 > 0:43:50Well, time has simply flown by, but have our buyers made any progress on their properties?
0:43:50 > 0:43:54Let's go back and find out what's happened to them.
0:43:54 > 0:44:01'It was in the thriving Derbyshire town of Ripley that we first saw this three-bed semi-detached house.
0:44:01 > 0:44:07'Not only was it well set back from the road, with a driveway and off-road parking,
0:44:07 > 0:44:12'but inside it offered a rather impressive range of wallpaper coverings.
0:44:14 > 0:44:16'Groovy!
0:44:16 > 0:44:20'Though the layout was less groovy with a teeny-weeny kitchen
0:44:20 > 0:44:25'and an even more disappointing downstairs bathroom.
0:44:25 > 0:44:29'With rotting floorboards, downstairs had room for improvement!
0:44:35 > 0:44:39'But with three good-sized bedrooms and plenty of outside space,
0:44:39 > 0:44:43'there was at least the possibility of changing the layout.
0:44:43 > 0:44:51'That's exactly what local electrician Paul thought when he bought it for £84,000 at auction.'
0:44:51 > 0:44:53What's the biggest challenges?
0:44:53 > 0:45:00This one, structural I would say, because there's going to be walls I want knocking down.
0:45:00 > 0:45:06- What are you planning?- Knocking the walls down for downstairs and taking the bathroom upstairs.
0:45:06 > 0:45:09A big, open-plan diner/kitchen.
0:45:09 > 0:45:13I hope I don't lose a bedroom, so I'll take the bathroom upstairs,
0:45:13 > 0:45:18create the other bedroom bigger by taking the chimney breast out.
0:45:18 > 0:45:21That way you've got a three-bed semi still.
0:45:21 > 0:45:28'Armed with a £20,000-£30,000 budget, he hoped to turn it around in 8-12 weeks,
0:45:28 > 0:45:30'making it ready to sell on.
0:45:33 > 0:45:37'Now, 3½ months later, we're back.
0:45:41 > 0:45:44'What a difference outside.
0:45:46 > 0:45:52'There's a great tarmac parking area, new flower beds and retaining walls
0:45:52 > 0:45:56'and also a proper porch area.
0:45:57 > 0:45:59'And at the back...
0:46:00 > 0:46:05'Well, that's got a little bit extra with a new conservatory.
0:46:05 > 0:46:10'But it was inside where we expected to see a bigger change.
0:46:14 > 0:46:16'Wow! What a difference!'
0:46:28 > 0:46:32This was the biggest challenge of them all.
0:46:32 > 0:46:37We'd a wall in line with the beam and a doorway to the bathroom.
0:46:37 > 0:46:42So to create what I needed to create was to knock the walls out,
0:46:42 > 0:46:46put the steel beams in and then behind me was
0:46:46 > 0:46:52a big chimney breast and to get your table and chairs and everything, we took the chimney breast out.
0:46:52 > 0:46:57New patio doors down to the floor and then put a conservatory on.
0:46:57 > 0:47:02It's opened everything up as an open-plan diner/kitchen.
0:47:02 > 0:47:08'It's not just the kitchen that looks so much better. The lounge is pretty good, too,
0:47:08 > 0:47:11'and the whole place is improved downstairs.
0:47:11 > 0:47:16'But has Paul sacrificed a bedroom to move the bathroom upstairs?
0:47:19 > 0:47:25'Well, no. By splitting the bigger bedroom and removing the chimney breast, he's not only made
0:47:25 > 0:47:28'a fantastic, up-to-date bathroom,
0:47:29 > 0:47:33'but has also maintained a good-sized bedroom.
0:47:33 > 0:47:40'And with the other two bedrooms rejigged and refurbished, boy, this is one impressive refurbishment.
0:47:40 > 0:47:43'And it doesn't stop there.'
0:47:45 > 0:47:50Well, outside, this was just all concrete.
0:47:50 > 0:47:57Straight down to the end of the patio there was wrought-iron gates. All that's now gone,
0:47:57 > 0:48:01as you can see. Tarmacked the drive.
0:48:01 > 0:48:06Straight in the garage. And tried to do one level for the patio,
0:48:06 > 0:48:09so there's no stepping up or down.
0:48:09 > 0:48:13'Not only has he now got a greatly improved patio area,
0:48:13 > 0:48:18'but he's also created some bedding space in the garden.
0:48:18 > 0:48:22- 'He's certainly been busy.' - Every day, weekends, nighttimes.
0:48:22 > 0:48:27And we wrapped up about nine at night.
0:48:27 > 0:48:35I've been on very little in the days, but every night and all weekends I've been on this project.
0:48:35 > 0:48:42'But it looks like all this hard work has paid off and he's really improved this place no end.'
0:48:43 > 0:48:49I've loved every minute of this one. There was just something about it when I bought it.
0:48:49 > 0:48:55With the amount of land with it, it's just everything for a good family, this one.
0:48:55 > 0:48:59'Having proposed a budget of £20,000-£30,000,
0:48:59 > 0:49:03'he's spent smack in the middle, £25,000.
0:49:03 > 0:49:07'Not bad at all for what he's ended up with.
0:49:07 > 0:49:12'But a £25,000 spend on top of his £84,000 purchase price
0:49:12 > 0:49:16'will take his total outlay to £109,000.
0:49:16 > 0:49:23'So has he taken this previously groovy house and made it more happening for the modern market?
0:49:23 > 0:49:27'What do two local estate agents think?'
0:49:27 > 0:49:30First impressions are great from outside.
0:49:30 > 0:49:35You see a nice new driveway, the porch looks really smart.
0:49:35 > 0:49:40You come inside, the property's had a lot of work done to it. It's a real transformation.
0:49:40 > 0:49:44Very modern, very light, a house you'd want to move in to.
0:49:44 > 0:49:50Very nice property inside. Very modern, especially the kitchen and the bathroom.
0:49:50 > 0:49:54I was very surprised at the interior.
0:49:57 > 0:50:02'Encouraging comments, but Paul's keen to sell this house as soon as possible
0:50:02 > 0:50:08'and move on to his next property, so will he get much return on his £109,000 investment
0:50:08 > 0:50:10'in the current market?'
0:50:10 > 0:50:15I think this property would now go onto the market at £139,950.
0:50:15 > 0:50:21I would put this property on the market at £135,000 to achieve £130,000.
0:50:21 > 0:50:23130-140...
0:50:23 > 0:50:26I'm pleased with that.
0:50:27 > 0:50:32'That could mean a potential pre-tax profit of £21,000-£31,000.
0:50:32 > 0:50:38'If Paul did have to let the house, the estate agents reckon he could achieve a rental value
0:50:38 > 0:50:45'of £550 per calendar month, which is an annual yield above 6%.
0:50:45 > 0:50:52'Paul's done an amazing job creating this fabulous, glossy home. He must be thrilled with the outcome.'
0:50:52 > 0:50:56I'm pleased, delighted how it's turned out.
0:50:56 > 0:50:59I'm just looking forward to the next project.
0:51:04 > 0:51:10'It was in Streatham, south-west London, where we saw a pretty impressive two-bedroom flat.
0:51:10 > 0:51:16'On the second floor of a purpose-built block, it was positively palatial in London terms.
0:51:17 > 0:51:22'It had two good-sized bedrooms, one of which was an en suite,
0:51:22 > 0:51:27'a large lounge-cum-kitchen/diner and a reasonable bathroom.
0:51:27 > 0:51:34'So with a 125-year lease and ground rent of just £200 per annum,
0:51:34 > 0:51:41'this was definitely an interesting lot. It was bought at auction for £234,000
0:51:41 > 0:51:46'by husband and wife property developing team Alex and Amy.
0:51:46 > 0:51:51'With two-year-old daughter Coco, they hoped to do it up and sell it on.
0:51:51 > 0:51:55'They didn't intend hanging about with this one.'
0:51:55 > 0:51:58# Get it on, bang a gong... #
0:51:58 > 0:52:01How long do you think it'll take to do this place up?
0:52:01 > 0:52:07We have to borrow money at quite a high interest rate, so we do it very quickly.
0:52:07 > 0:52:12- We set ourselves a goal of five weeks.- Five weeks to be in and out.
0:52:12 > 0:52:19- Wow!- We have our team of builders ready and waiting. Everything's pre-ordered.
0:52:19 > 0:52:23It will arrive on the second day and they'll be working on target.
0:52:23 > 0:52:28# Get it on, bang a gong Get it on... #
0:52:28 > 0:52:34'Not only did they need to get on with it for financial reasons, these were busy people,
0:52:34 > 0:52:40'with Alex writing and working on film projects, while Amy has her own architectural practice.
0:52:42 > 0:52:50'So with a team of builders and a 30-grand budget, did they really get it revamped in five weeks?
0:52:51 > 0:52:57'Now a little over six weeks later, we've returned to see how they've got on.
0:53:03 > 0:53:06'Well, it's certainly looking great.
0:53:08 > 0:53:11'With an upgraded kitchen,
0:53:11 > 0:53:13'new flooring
0:53:18 > 0:53:24'and, in the master bedroom, there's a much improved en suite.
0:53:25 > 0:53:31'This is fantastic, but did they really get it done in their five-week timescale?'
0:53:31 > 0:53:36It took us about 4½ weeks in total. We had a couple of days of snagging.
0:53:36 > 0:53:41So perfectly on time, finished exactly to the day.
0:53:41 > 0:53:43It was very smooth, this project.
0:53:45 > 0:53:51'That's pretty good and it doesn't look like doing it fast has meant they've cut corners.
0:53:51 > 0:53:55'There are high-quality fittings throughout.
0:53:55 > 0:54:01'This has been some team effort, so do they really work well together?'
0:54:01 > 0:54:07We have our little ups and downs, of course, but I think we work well together
0:54:07 > 0:54:12because Amy sort of looks after the build,
0:54:12 > 0:54:17does the ordering, the design. I do more the legal side.
0:54:17 > 0:54:21- We both have found our niche. - We have clearly-defined roles.
0:54:21 > 0:54:26If we stick to them, clearly, it works very well.
0:54:26 > 0:54:31'They also had daughter Coco checking it all out, too.'
0:54:31 > 0:54:37All the builders know her very well. She's got her own little hard hat she likes to put on.
0:54:37 > 0:54:40She's been enjoying herself.
0:54:40 > 0:54:46'And I'm sure she's impressed with the changes her mum and dad have made to this flat.
0:54:50 > 0:54:55'So on time. Also on budget?'
0:54:55 > 0:54:5730,000. Exactly.
0:54:57 > 0:55:00Even, actually, a little bit less,
0:55:00 > 0:55:05only because of bulk buying and knowing the products we were going to use
0:55:05 > 0:55:09and we got discounts from ordering them before.
0:55:09 > 0:55:14So probably a thousand or so under, which is great.
0:55:15 > 0:55:22'But along with that £30,000 spend, they've had £20,000 of legal fees and costs,
0:55:22 > 0:55:30'which, added to their £234,000 purchase price, means they've spent £284,000 on the flat.
0:55:30 > 0:55:35'So do two local estate agents reckon they've invested wisely?'
0:55:35 > 0:55:40I had a look round. Very impressive. The owner has done a fantastic job.
0:55:40 > 0:55:47My favourite thing would definitely have to be the kitchen. And also the bathroom and the en suite.
0:55:47 > 0:55:53My first thoughts of the flat are the high specification of the detail they've done to it,
0:55:53 > 0:56:01ie the bathrooms, the tiling and the integrated units they've installed in the kitchen.
0:56:01 > 0:56:06The only thing I'd have done differently is the quality of flooring to a higher level.
0:56:07 > 0:56:12'Amy and Alex took out a loan on this flat, so don't want to let it,
0:56:12 > 0:56:18'but it would be interesting to know what rental value this flat in Streatham could achieve.'
0:56:18 > 0:56:25I believe if you put it in the rental market today, you'd be looking at £1,600 per calendar month.
0:56:25 > 0:56:29This property would rent out for around £1,400 per calendar month.
0:56:29 > 0:56:36Rental on this property is not an option. The figures sound great, but it's not an option.
0:56:36 > 0:56:42'So a potential annual yield of around 7% isn't really on the table for Alex and Amy,
0:56:42 > 0:56:47'but having invested £284,000 here, they hoped to give it the wow factor
0:56:47 > 0:56:53'and sell it for around £360,000. Is that too ambitious?'
0:56:55 > 0:56:59I believe this flat would re-sell for offers in excess of £300,000.
0:56:59 > 0:57:05If you put it on in today's market, you're probably looking at a retail asking price of £365,000.
0:57:05 > 0:57:09It's interesting to hear the other values they've given.
0:57:09 > 0:57:15But I think we'll stick with the 360 that we've been told by one of the other agents.
0:57:15 > 0:57:21'Yes, Alex and Amy currently have the flat on the market for £360,000.
0:57:21 > 0:57:27'If they achieve anywhere near that, they could see a potential pre-tax profit
0:57:27 > 0:57:32'of around the £70,000 mark. Not bad for five weeks' work.
0:57:32 > 0:57:38'But with a multitude of other interests, is property developing something they'll continue to do?'
0:57:39 > 0:57:45I think we're just very lucky that at the moment we've found something that's working for us.
0:57:45 > 0:57:51Times are quite tough in a recession, so we'll continue as long as we can, really.
0:57:53 > 0:57:57Whether it's a bungalow, a mansion or just a piece of land,
0:57:57 > 0:58:04- we'll be here to see what happens to it next time.- So make sure you join us then.- Goodbye.- Goodbye.
0:58:21 > 0:58:24Subtitles by Red Bee Media Ltd