0:00:02 > 0:00:04Hello. In today's challenging market,
0:00:04 > 0:00:06could you hack it in the property world?
0:00:06 > 0:00:09If you get it right, it can be an exciting way to earn money.
0:00:09 > 0:00:12Yes, and it can be even more rewarding
0:00:12 > 0:00:14buying your homes under the hammer.
0:00:40 > 0:00:42There are tense moments in the auction room.
0:00:42 > 0:00:45Who will make the right bid at the right time?
0:00:45 > 0:00:49Yes, properties can change peoples' fortune for better or worse.
0:00:49 > 0:00:52So, what inspired the buyers today?
0:00:54 > 0:00:56I'm in lovely Somerset viewing a cottage
0:00:56 > 0:00:59that has something special up its sleeve.
0:00:59 > 0:01:03There really is a fantastic surprise in store.
0:01:04 > 0:01:08In Kent, first time developer Tom takes on this terrace.
0:01:08 > 0:01:09Could there be trouble ahead?
0:01:11 > 0:01:13- What are you worried about with this project?- Everything.
0:01:15 > 0:01:18And in Carlisle, what is it about this one bedroom flat
0:01:18 > 0:01:21that's giving me nightmares?
0:01:21 > 0:01:22Ah!
0:01:25 > 0:01:28All these properties have been sold at auction.
0:01:28 > 0:01:31We'll find out who bought them and what they paid for them,
0:01:31 > 0:01:33when they went under the hammer.
0:01:43 > 0:01:45I just love Somerset.
0:01:45 > 0:01:49Its lovely hamstone cottages give me a warm glow.
0:01:49 > 0:01:53I'm visiting a hamlet on the edge of the small town of Martock.
0:01:53 > 0:01:56It's called Bower Hinton and I'm excited.
0:01:59 > 0:02:02The property I'm here to see is on the main road,
0:02:02 > 0:02:05although I don't think you're going to have to worry too much
0:02:05 > 0:02:08about rush hour traffic through here.
0:02:08 > 0:02:10What was on offer, though?
0:02:10 > 0:02:14It was a three bedroom cottage...and that's it.
0:02:14 > 0:02:16Nice honey coloured stone on the outside.
0:02:16 > 0:02:18Shame about the uPVC windows.
0:02:18 > 0:02:21It ruins the character a bit, but you have got a garage.
0:02:21 > 0:02:25The guide price was £200,000. Let's take a look.
0:02:25 > 0:02:29That garage is pretty useful on small country roads like these,
0:02:29 > 0:02:30where parking can be tricky.
0:02:32 > 0:02:34So, what have we got?
0:02:34 > 0:02:36- Well... - HE LAUGHS
0:02:36 > 0:02:40That's a bit of a disappointment. When you come into this porch area,
0:02:40 > 0:02:43the first thing that strikes you is the surface-mounted copper pipes.
0:02:43 > 0:02:45The good news is I guess you've got central heating,
0:02:45 > 0:02:48but I'd like to see that installed in a slightly different way.
0:02:48 > 0:02:50But interestingly enough,
0:02:50 > 0:02:54this was originally two cottages which have at some stage
0:02:54 > 0:02:56been knocked together to create one,
0:02:56 > 0:02:58and you certainly get that impression
0:02:58 > 0:03:00when you come into this living area,
0:03:00 > 0:03:03because a door there leads to an open plan and quite large
0:03:03 > 0:03:06living area over that side, which I imagine was the other cottage.
0:03:06 > 0:03:09But let's stick with this side for now.
0:03:09 > 0:03:13A really unnecessary dividing wall, which I think you'd want to take
0:03:13 > 0:03:15out to almost mirror that side
0:03:15 > 0:03:18and create a nice open plan living area here,
0:03:18 > 0:03:21because it is giving the impression of being a lot
0:03:21 > 0:03:25bigger on the inside than it looks on the outside, cos it carries
0:03:25 > 0:03:29on quite a long way back, ending up with this kitchen area here.
0:03:29 > 0:03:31Now, it's obviously in a right old state,
0:03:31 > 0:03:34and my guess is it's an extension.
0:03:34 > 0:03:36Much lower ceilings than the rest of the property.
0:03:36 > 0:03:39It's shoddy, it needs complete refurbishment,
0:03:39 > 0:03:42but the good news is nice big windows looking out onto
0:03:42 > 0:03:46a patio area there, so stuff you can work with.
0:03:46 > 0:03:49Hmm, but work to be done, there is.
0:03:49 > 0:03:53There's definitely scope for a major transformation here.
0:03:53 > 0:03:56You could create a lovely cottage.
0:03:56 > 0:03:59These rooms are all surprisingly good sizes
0:03:59 > 0:04:03and with a bit of jiggery-pokery, you could improve the layout,
0:04:03 > 0:04:06and that's where some thinking needs to be done.
0:04:06 > 0:04:09Obviously, one of the things you need to consider
0:04:09 > 0:04:11before you do it up is whether or not you're going to
0:04:11 > 0:04:14keep it as one big house or possibly split it back
0:04:14 > 0:04:16into how it originally was, two properties.
0:04:16 > 0:04:18Well, if you decide on the two properties route,
0:04:18 > 0:04:21one thing you'll have to do, amongst other things,
0:04:21 > 0:04:23is put in a staircase, cos there is only one at the moment.
0:04:23 > 0:04:27That leads up to two big double bedrooms,
0:04:27 > 0:04:29obviously, in this side of the cottage.
0:04:29 > 0:04:32Big, thick wall here, which is obviously where the
0:04:32 > 0:04:34dividing wall between the cottages was,
0:04:34 > 0:04:38and then into an area which I think is both bad and good.
0:04:38 > 0:04:42Bad because it's a really disastrous use of space as it stands,
0:04:42 > 0:04:45but good because I think it shows potential.
0:04:45 > 0:04:48At the moment, the whole building is only three bedrooms,
0:04:48 > 0:04:51but one of them there is absolutely massive.
0:04:51 > 0:04:55Then you come down these stairs here to a bathroom and loo,
0:04:55 > 0:04:58and this little area with cupboards or whatever it is.
0:04:58 > 0:05:02I wonder if this could potentially be a bedroom and that bedroom,
0:05:02 > 0:05:06certainly, at the front is big enough to hold a bathroom,
0:05:06 > 0:05:11and you turn this suddenly into a four bedroomed property,
0:05:11 > 0:05:14which I think is much better suited to this location.
0:05:18 > 0:05:21This could be a brilliant family home,
0:05:21 > 0:05:24but does it have a family sized garden?
0:05:27 > 0:05:33Well, at the rear of the property, there really is a fantastic surprise
0:05:33 > 0:05:37in store, because you might think that this is the garden
0:05:37 > 0:05:42and that would be perfectly acceptable, because it's big.
0:05:42 > 0:05:43But no.
0:05:45 > 0:05:47You've also got this area here.
0:05:47 > 0:05:51Now, largely laid out to concrete, but it's reasonably flat with
0:05:51 > 0:05:55these few little sheds, so lots of extra space.
0:05:55 > 0:05:56There's more!
0:05:58 > 0:06:01Through here, there's this large area laid predominantly
0:06:01 > 0:06:03to grass, although it looks like there's been some
0:06:03 > 0:06:06vegetable growing going on, and that would be a fantastic use for it.
0:06:06 > 0:06:09Vegetable plot, an orchard, perhaps.
0:06:09 > 0:06:13What a fantastic addition to the house.
0:06:13 > 0:06:14You guessed it.
0:06:17 > 0:06:20It really is almost unbelievable, but on the end of those three
0:06:20 > 0:06:26bits of garden, there is a final extra bit of garden.
0:06:26 > 0:06:27How extraordinary.
0:06:27 > 0:06:31That in itself would be fantastic, but the extra bit of good news
0:06:31 > 0:06:35you discover when you come here is that over there is an access road.
0:06:35 > 0:06:37It's used to access the allotments at the back here
0:06:37 > 0:06:39and also the rear of these properties.
0:06:39 > 0:06:41So, suddenly, I'm thinking,
0:06:41 > 0:06:44"Is there a potential for this to be a building plot?"
0:06:44 > 0:06:46Possibly.
0:06:46 > 0:06:50My concern would be that there are no similar houses all around...
0:06:50 > 0:06:53in terms of this little area here,
0:06:53 > 0:06:55so the planners might have an issue with that.
0:06:55 > 0:06:58Also, you'd have to have a permanent access via that road,
0:06:58 > 0:07:01which might be difficult to get.
0:07:01 > 0:07:04But, whichever way you look at it, it's got to be worth a punt.
0:07:07 > 0:07:09This is a garden of epic proportions
0:07:09 > 0:07:12and it could attract lots of different buyers -
0:07:12 > 0:07:14families looking for space,
0:07:14 > 0:07:17developers who would, of course, have to do their homework,
0:07:17 > 0:07:21or maybe just someone wanting a slice of the good life.
0:07:25 > 0:07:27What does a local estate agent think of the property
0:07:27 > 0:07:30that was guided at £200,000?
0:07:31 > 0:07:34I think the layout of the property is fine as it is.
0:07:34 > 0:07:37I think upstairs is really the only bit you need to play with,
0:07:37 > 0:07:39in order to gain an extra bedroom.
0:07:39 > 0:07:43And I also think that character is important for this property,
0:07:43 > 0:07:46so I think that obviously needs to be put into it, as well,
0:07:46 > 0:07:48when the work's done.
0:07:48 > 0:07:52Get the character back in and this would be a wonderful home.
0:07:52 > 0:07:55But whilst renovating, what sort of resale value could the house
0:07:55 > 0:07:58achieve if kept as a three bed?
0:07:58 > 0:08:02You'd be looking to market it at £295,000
0:08:02 > 0:08:05and hope to achieve £280,000.
0:08:05 > 0:08:09And if it was renovated and turned into a four bedroom property,
0:08:09 > 0:08:14we'd be looking at £335,000 and hope to achieve £325,000.
0:08:14 > 0:08:18And how did the rental returns sound?
0:08:18 > 0:08:20As a three bedroom property,
0:08:20 > 0:08:25you'd be looking at £800-£850 per calendar month,
0:08:25 > 0:08:27and as a four bedroom property,
0:08:27 > 0:08:32you'd be looking at £900-£950 per calendar month.
0:08:34 > 0:08:36Well, a lovely location
0:08:36 > 0:08:38and a potentially delightful little cottage.
0:08:38 > 0:08:41Yes, it needs a bit of work, but you can add value.
0:08:41 > 0:08:45And then the added potential of that huge garden.
0:08:45 > 0:08:47Definitely an interesting one to go for.
0:08:47 > 0:08:50Let's see who agreed when it went under the hammer.
0:08:52 > 0:08:54This was one of the last lots of the day.
0:08:55 > 0:08:56Bower Hinton in Somerset.
0:08:56 > 0:08:59A three bed hamstone mid terrace cottage.
0:08:59 > 0:09:02If somebody would like to start me off at £200,000 on this?
0:09:03 > 0:09:06195? Yep. 195.
0:09:06 > 0:09:08At 200 now.
0:09:08 > 0:09:09195, at 200 now.
0:09:09 > 0:09:11200. 205?
0:09:11 > 0:09:13202 and a half.
0:09:13 > 0:09:17It's 202 and a half seated back left.
0:09:17 > 0:09:20205? 207 and a half?
0:09:20 > 0:09:23No? 205 seated here.
0:09:23 > 0:09:26Against both of you, at £205,000.
0:09:26 > 0:09:29Everyone else is done here? Quite sure?
0:09:29 > 0:09:31I think they are. It's 205.
0:09:31 > 0:09:33It's yours.
0:09:33 > 0:09:37The successful buyer getting the lot for £205,000,
0:09:37 > 0:09:40just £5,000 over the guide price, was Nick,
0:09:40 > 0:09:45a Somerset local who saw the potential this place has to offer.
0:09:45 > 0:09:47I met him at the cottage to find out his plans.
0:09:48 > 0:09:52- Nick, congratulations.- Thank you. - Nice to meet you.- And you.
0:09:52 > 0:09:56- I hope you've got a big mower.- Yeah, and a strimmer and a herd of sheep.
0:09:56 > 0:10:01- Can you believe the size of this garden?- No, it's huge.
0:10:01 > 0:10:03So tell me why you wanted to buy this place.
0:10:03 > 0:10:07I've been looking for a while and it struck me that there was
0:10:07 > 0:10:11an opportunity to get in and turn it around reasonably quickly
0:10:11 > 0:10:14and get it back on the market and hopefully make a turn on the thing.
0:10:14 > 0:10:15- Is this something you do?- Yeah.
0:10:15 > 0:10:17I haven't for a while.
0:10:17 > 0:10:20I've been out of the game for a few years, sort of through the recession,
0:10:20 > 0:10:25but certainly it is what I've been involved in for the last 20-odd years.
0:10:25 > 0:10:27So what have you been doing in the interim period?
0:10:27 > 0:10:31- Erm, I've been working in the racing industry.- Racing?
0:10:31 > 0:10:35Yeah, a friend and I completely stumbled into it,
0:10:35 > 0:10:40but we made a piece of equipment that replicated paddling in the sea,
0:10:40 > 0:10:41so horses would essentially...
0:10:41 > 0:10:44I don't know if you're familiar with a regular horse walker,
0:10:44 > 0:10:47but they went down a ramp and they walked round
0:10:47 > 0:10:49- and round in very cold saltwater.- Oh!
0:10:49 > 0:10:54It is a known thing in the industry. If you've got access to the sea
0:10:54 > 0:10:58or the beach, you'd use it. If you haven't, you could buy one of our...
0:10:58 > 0:10:59- Use that thing.- ..toys, yeah.
0:10:59 > 0:11:01And what, it sort of makes it harder for them?
0:11:01 > 0:11:04Yeah, there is a bit of resistance training.
0:11:04 > 0:11:09The cold was good for recovery after fast work and that sort of thing.
0:11:09 > 0:11:13So, from paddling pools for horses back to property,
0:11:13 > 0:11:15and what a place to restart with.
0:11:15 > 0:11:19Nick plans to take it all back to bare walls and renovate
0:11:19 > 0:11:21the place from top to bottom.
0:11:21 > 0:11:24And, in the process, add a fourth bedroom.
0:11:24 > 0:11:28He has thought about restoring it to two two-bedroom cottages
0:11:28 > 0:11:31but reckons the cost of putting in the extra kitchen, bathroom
0:11:31 > 0:11:35and staircase would make any profit margin quite tight.
0:11:35 > 0:11:40So, Nick is sticking with what he's got here. So, the garden.
0:11:40 > 0:11:41What are your thoughts about that?
0:11:41 > 0:11:44Er, yes, we've got to do rather a lot of clearing, I think, first,
0:11:44 > 0:11:46so we can see what's there.
0:11:46 > 0:11:49There's a lot of outbuildings and concrete pads and one thing
0:11:49 > 0:11:53or another, so if we can clear it all back, see exactly what we've got,
0:11:53 > 0:11:57there's an opportunity to bring access in for vehicles at the back.
0:11:57 > 0:11:59- Now, when you say that, is there? - There is, yeah.
0:11:59 > 0:12:03There is a track that runs round the back that is privately owned
0:12:03 > 0:12:06but rented to the parish.
0:12:06 > 0:12:09And, for an annual fee, you can get a licence to bring vehicles in,
0:12:09 > 0:12:12which most other properties in the street have done.
0:12:12 > 0:12:14So, we shall do that.
0:12:14 > 0:12:16Is there a guarantee that would continue, though?
0:12:16 > 0:12:19No, there's not a guarantee,
0:12:19 > 0:12:24but then the 40 allotment users and every other property in the street
0:12:24 > 0:12:29might be up in arms, I think, if there was a move to remove that.
0:12:29 > 0:12:31And I don't know the ins and outs.
0:12:31 > 0:12:33- I need to speak further to the parish clerk about that.- OK.
0:12:33 > 0:12:37But I have been led to believe that it is, you know, fairly safe.
0:12:37 > 0:12:40Because that then opens up the whole possibility of developing
0:12:40 > 0:12:42- out the back, doesn't it?- It does.
0:12:42 > 0:12:45It does, and that is something I will have to explore.
0:12:45 > 0:12:48I haven't really pursued that line yet.
0:12:48 > 0:12:53Nick's first step is going to be a meeting with the planning authority,
0:12:53 > 0:12:55but he's pretty sure it will be a flat no.
0:12:55 > 0:12:57Best to check it out anyway.
0:13:01 > 0:13:03Whether he gets that permission or not,
0:13:03 > 0:13:06he'll press on with the cottage, giving himself six months
0:13:06 > 0:13:10doing most of the work himself apart from the electrics and plumbing.
0:13:10 > 0:13:13So, what is he hoping to spend?
0:13:13 > 0:13:17In terms of the actual build cost, I am hoping to come in inside 60.
0:13:17 > 0:13:21- 60?!- Yeah.- What are you going to spend...? What...?- I know. Well...
0:13:21 > 0:13:23- What are you going to do?!- Yeah!
0:13:23 > 0:13:27I look forward to seeing the sunken bath and the Roman amphitheatre
0:13:27 > 0:13:31and the cinema room and the helicopter landing pad!
0:13:31 > 0:13:33- I felt, on the basis...- 60?!
0:13:33 > 0:13:35..on the basis that everybody gets it wrong
0:13:35 > 0:13:38and they always go over budget, I'd start high and then when you
0:13:38 > 0:13:41come back I can say, "Well, actually, we managed to do it for 43!"
0:13:41 > 0:13:45- Yes, exactly. Or 20. Wow!- Yeah. - Well, congratulations.- Thank you.
0:13:45 > 0:13:47- Good luck with it.- Thank you.
0:13:47 > 0:13:50- And we look forward to seeing how you get on.- All right, brilliant.
0:13:51 > 0:13:54Well, wow, a £60,000 budget.
0:13:54 > 0:13:57Nick really must be the most expensive workman in Somerset.
0:13:57 > 0:14:00Still, it's going to be interesting to see what he does to this place,
0:14:00 > 0:14:03and he must, must, must investigate
0:14:03 > 0:14:06the possibility of building at the end of the garden there.
0:14:06 > 0:14:08If he can get the planning permission, wow -
0:14:08 > 0:14:11does this turn into an interesting opportunity?!
0:14:11 > 0:14:13You can find out what happens later in the show.
0:14:18 > 0:14:22Now, from the idyllic countryside to a former industrial town
0:14:22 > 0:14:24on the Kent coast.
0:14:24 > 0:14:27Chatham is well-known for its maritime connections
0:14:27 > 0:14:30and it was the business and industry that grew from its busy docks
0:14:30 > 0:14:34that once upon a time made this place affluent.
0:14:34 > 0:14:37Modern times have proven tougher, and despite being
0:14:37 > 0:14:43in the Southeast, property prices here are still resolutely low.
0:14:43 > 0:14:47Roads like this are a clear reminder of Chatham's industrial past.
0:14:47 > 0:14:50The terraces just seem to go on for miles and would have
0:14:50 > 0:14:55housed dockyard workers when Chatham was buzzing with industry.
0:14:55 > 0:14:57Today, the houses are at the lower end of the scale
0:14:57 > 0:15:00but they still make very decent homes.
0:15:00 > 0:15:02The one I am here to see is this.
0:15:02 > 0:15:08It's got three bedrooms and it had a guide price of 75,000-85,000,
0:15:08 > 0:15:10and it sits at the top of a very steep hill.
0:15:21 > 0:15:24I just hope whoever buys this has a reliable handbrake
0:15:24 > 0:15:26and head for heights.
0:15:26 > 0:15:28Still, I love these Victorian terraces
0:15:28 > 0:15:31and this one looks in shipshape condition from the outside.
0:15:34 > 0:15:38There are some quite steep steps leading up to the property,
0:15:38 > 0:15:40so, you know, you have to take care in the winter months.
0:15:40 > 0:15:43Well, they could become a little bit slippery.
0:15:43 > 0:15:45Could be potentially dangerous.
0:15:45 > 0:15:47But exactly as I expected on the inside,
0:15:47 > 0:15:50you've got a great space here. I don't think this is damp.
0:15:50 > 0:15:52It was probably a bit of condensation,
0:15:52 > 0:15:54because this is an external wall.
0:15:54 > 0:15:57So, nothing to worry about there. Could have a look and see
0:15:57 > 0:16:00if you have got a nice little fireplace under there.
0:16:00 > 0:16:02But a really good room.
0:16:02 > 0:16:04And then you've got the stairs leading to three bedrooms
0:16:04 > 0:16:06and a second reception room.
0:16:06 > 0:16:09Now, I can see straightaway, sofa here,
0:16:09 > 0:16:11sofa there, or great big table.
0:16:11 > 0:16:13You can have all the kids having dinner.
0:16:13 > 0:16:17It's really big enough to do anything you want in this room, which is good.
0:16:17 > 0:16:20You've got a door which leads out to the garden. And the kitchen,
0:16:20 > 0:16:23now, the good news is it's not in bad nick.
0:16:23 > 0:16:25You could actually leave it as it is.
0:16:25 > 0:16:27Sadly, though, the boiler has gone,
0:16:27 > 0:16:30so you would have to factor that into it.
0:16:30 > 0:16:33The boiler was, in fact, stolen from the property,
0:16:33 > 0:16:36and replacing it means extra expense for any potential buyer.
0:16:49 > 0:16:52However, the extra reception room and the well-maintained kitchen
0:16:52 > 0:16:54might just even it out.
0:16:54 > 0:16:57You've got the bathroom right at the back and there is enough
0:16:57 > 0:17:01space in-between to sort of differentiate between the two areas.
0:17:01 > 0:17:04So it's a great property, I really like it,
0:17:04 > 0:17:06but I'd like to check out the rooms upstairs.
0:17:08 > 0:17:09What have we got?
0:17:09 > 0:17:14Well, the bedroom at the front is a good size, as is the second.
0:17:14 > 0:17:18But the bad news is that to get to the third bedroom, well,
0:17:18 > 0:17:21you have to go through this one.
0:17:21 > 0:17:26And that third room is an extension, which means it has a lower ceiling.
0:17:28 > 0:17:32You know me, my mission is always to get a bathroom upstairs,
0:17:32 > 0:17:34but, depending on your reason for buying this place,
0:17:34 > 0:17:37the cost may well outweigh the benefits.
0:17:37 > 0:17:41Ups and downs seem to be a theme of this house.
0:17:41 > 0:17:44So there are gardens and then there are gardens.
0:17:44 > 0:17:48Now, I was expecting to see a yard out here.
0:17:48 > 0:17:51But, actually, it's not quite that.
0:17:51 > 0:17:53But, you know, could you make use of it?
0:17:53 > 0:17:57You've got a little terrace area here where you could sit outside,
0:17:57 > 0:18:00have a little barbecue. More steps.
0:18:00 > 0:18:04Little grass areas here. More steps. Maybe you could do something there.
0:18:04 > 0:18:09You certainly won't be playing cricket and rounders out the back, that's for sure!
0:18:09 > 0:18:10And you've got to climb up here
0:18:10 > 0:18:13and you've got a little grassed area here.
0:18:13 > 0:18:17You've got fantastic news over Chatham, but this is
0:18:17 > 0:18:21the type of garden that has been taken to a whole other level.
0:18:21 > 0:18:22SHE EXHALES SHARPLY
0:18:22 > 0:18:25- BREATHLESSLY:- So - ugh! - a tiered garden.
0:18:25 > 0:18:28Steep stairs up to the front door, a downstairs bathroom
0:18:28 > 0:18:30and it is on a steep hill.
0:18:30 > 0:18:33So I think it would be tricky to tempt young families or
0:18:33 > 0:18:36people with mobility issues to this house.
0:18:45 > 0:18:48So what does the local estate agent think of this property?
0:18:48 > 0:18:53Guided at 75,000-85,000, I hope he's feeling energetic.
0:18:53 > 0:18:54Its needs some TLC.
0:18:54 > 0:18:57It's not great deals, it's not structural, it's all cosmetic.
0:18:57 > 0:18:59But it needs addressing before anything happens with it.
0:18:59 > 0:19:04And sold on or rented as quickly as possible, and turn it around.
0:19:04 > 0:19:08Once the changes are made, what sort of sale prices are realistic?
0:19:08 > 0:19:13I'd expect you'd get around 100, possibly slightly more, but then that
0:19:13 > 0:19:16would be competing against probably better properties in the area.
0:19:16 > 0:19:19The maximum you'd achieve per calendar month on a rental
0:19:19 > 0:19:21property here would be £600.
0:19:21 > 0:19:24However, I think it would go a little bit less to get the right
0:19:24 > 0:19:26person in at the right time and have it rented out all the time.
0:19:26 > 0:19:29It would be easy to rent out. They're not hard properties to rent.
0:19:29 > 0:19:34A solid, standard terrace that would rent as soon as it is renovated.
0:19:34 > 0:19:36Just what plenty of people are after.
0:19:36 > 0:19:38So, let's see who bid at the auction.
0:19:40 > 0:19:42Three-bedroom terraced house for improvement.
0:19:42 > 0:19:46It's got gas heating, double glazing and vacant possession.
0:19:46 > 0:19:49£80,000, can I say? Give me 75 then. 75.
0:19:49 > 0:19:5575 bid, I have. 80 I am looking for. At 80, do I see? At 80 I am bid.
0:19:55 > 0:19:5785 is against you, 85 do I say?
0:19:57 > 0:19:59At £80,000, then, I've got.
0:19:59 > 0:20:02Two anywhere else? 82, I'm obliged.
0:20:02 > 0:20:0384 now, do I say?
0:20:03 > 0:20:0584, back to you, sir.
0:20:05 > 0:20:0786, it's against you.
0:20:07 > 0:20:0986 if you wish.
0:20:09 > 0:20:10Are we all...? 86 bid.
0:20:10 > 0:20:1288 now if you like.
0:20:12 > 0:20:16At 86,000... 88. No?
0:20:16 > 0:20:19At £86,000 standing at the back, 88 I want,
0:20:19 > 0:20:21are we all done at £86,000?
0:20:21 > 0:20:23I will sell for the first time...
0:20:23 > 0:20:27£86,000 standing at the back for the second time.
0:20:27 > 0:20:32Third and final time at £86,000, are you sure you are all done?
0:20:32 > 0:20:3486,000 and the number, please.
0:20:35 > 0:20:41That final bid of £86,000 was made by Tom, who's a builder
0:20:41 > 0:20:44and has already got his hands, well, rather full.
0:20:51 > 0:20:55This is his first investment project and he's hoping to turn this
0:20:55 > 0:20:59property around rather quickly and get it back on the open market.
0:21:00 > 0:21:03- So this is your first investment opportunity ever?- Yeah, yeah.
0:21:03 > 0:21:06And why did you decide to go down the auction route?
0:21:06 > 0:21:09- Erm, well, I'm a fan of the show, you know.- Yay!
0:21:09 > 0:21:14Obviously seemed just a good way to use a bit of money, you know.
0:21:14 > 0:21:17We've done it on loan, so obviously it's a case of get moving
0:21:17 > 0:21:19and turn it around as quickly as possible.
0:21:19 > 0:21:23- What would you like to sell this on for?- Erm...
0:21:23 > 0:21:25In an ideal world, maybe 110,
0:21:25 > 0:21:29but I think realistically I would do well to get 105 for this.
0:21:29 > 0:21:30- OK.- But we'll see.
0:21:32 > 0:21:35So, with the purchase price of 86,000
0:21:35 > 0:21:41and a budget of nine to ten grand, there's only one thing on my mind.
0:21:41 > 0:21:44- Where's your profit?- I-I...
0:21:44 > 0:21:48I've got no expectations of making a huge amount on my first go.
0:21:48 > 0:21:52I do want to make, hopefully, at least 10,000, maybe.
0:21:52 > 0:21:56So, you know, if I can keep things relatively cheap,
0:21:56 > 0:21:59I do think there's a potential to make, hopefully, around ten.
0:22:01 > 0:22:03Tom has done a bit of research about the sale prices in the area
0:22:03 > 0:22:07and while he admits to being a novice at costing the work,
0:22:07 > 0:22:09he's optimistic about making a small profit.
0:22:09 > 0:22:13With his own building skills and the help of his plasterer brother,
0:22:13 > 0:22:17he's hoping to save money and get this project done in two months.
0:22:17 > 0:22:20This timescale could be crucial.
0:22:20 > 0:22:23When you borrow money, as Tom has had to to buy this property,
0:22:23 > 0:22:27you have got to factor in things like loan interest and then there is
0:22:27 > 0:22:32rates, agent, selling and legal fees, all adding to your costs.
0:22:32 > 0:22:35I hope he isn't planning anything too ambitious.
0:22:36 > 0:22:38What are you going to do to really turn this place around?
0:22:38 > 0:22:42You've got a bathroom downstairs, two bedrooms, with one leading off.
0:22:42 > 0:22:45Can you change that, have you thought about the layout in here?
0:22:45 > 0:22:49Yeah, I mean, I looked into this road and I know that some houses do turn
0:22:49 > 0:22:52the staircases around, but I think the cost would be too much for that.
0:22:52 > 0:22:54So, really, I think
0:22:54 > 0:22:56it's just to make a bit of a selling point of this area.
0:22:56 > 0:23:00Remove this wall, make a nice sort of kitchen/diner.
0:23:00 > 0:23:03You know, the rest of the house will be a case of neatening it up.
0:23:03 > 0:23:05Magnolia walls, you know,
0:23:05 > 0:23:08a nice blank canvas for someone to put their stamp on it, really.
0:23:08 > 0:23:10So the only thing is, I'm just thinking,
0:23:10 > 0:23:13you will be probably selling this on to an investor who will be
0:23:13 > 0:23:16renting it out and reaping all the benefits.
0:23:16 > 0:23:19- Because it does really stack up in terms of a rental property.- Yeah.
0:23:19 > 0:23:23For me, rental, you know, is not out of the question.
0:23:23 > 0:23:25But it is a worst-case scenario.
0:23:25 > 0:23:29I do want to sort of, you know, sell it on, get the money and go again.
0:23:29 > 0:23:33I mean, my goal for the future is to carry on doing that and maybe
0:23:33 > 0:23:36get a few buy-to-lets as I go and when it's affordable.
0:23:36 > 0:23:40But, for the first one, I know it is a good rental area, but I do want to move on.
0:23:40 > 0:23:44- What are you worried about with this project?- Everything!- Are you?
0:23:44 > 0:23:47- Are you nervous?- No, no, no! Excited and nervous.
0:23:47 > 0:23:50I think a lot of it is going to be new to me, but it's nice to
0:23:50 > 0:23:52get your hands dirty and then have a look at the end result.
0:23:52 > 0:23:56So I think I'm really looking forward to just sitting back at the end
0:23:56 > 0:23:59of it and, you know, just being happy with what I might achieve.
0:23:59 > 0:24:02Now, I know you are going to be busy because I have met little
0:24:02 > 0:24:06Charlie today and I know your fiancee has gone back part-time to work.
0:24:06 > 0:24:10How are you going to fit it all in and what do you think Charlie is going to make of all this?
0:24:10 > 0:24:12Well, he's going to have to see a little bit less of me.
0:24:12 > 0:24:14Maybe on Sundays especially.
0:24:14 > 0:24:17But, no, I'm going to be doing a lot and I've also
0:24:17 > 0:24:20got my cricket on a Saturday to think about, so it's going to definitely be
0:24:20 > 0:24:23a seven-day week, well, for the next couple of months at least, anyway.
0:24:23 > 0:24:26So you are very dedicated dad, I can see that,
0:24:26 > 0:24:28but a very dedicated sportsman.
0:24:28 > 0:24:31- What's all that about and how do you find the time?- I just...
0:24:31 > 0:24:33I enjoy it, you know.
0:24:33 > 0:24:36This will be fun, my cricket is always fun and, obviously,
0:24:36 > 0:24:39the little one is even more fun. So...
0:24:39 > 0:24:41- Let's hope the house will be as fun as well.- Yeah, let's hope so.
0:24:41 > 0:24:45- Tom, lovely meeting you today. Good luck, and I can't wait to see what you do here.- Thanks, Lucy.
0:24:45 > 0:24:47- Well done.- Cheers.
0:24:48 > 0:24:53Tom has a great property here but it's a classic rental.
0:24:53 > 0:24:56And I'm worried, well, instant profit might be hard to find.
0:24:56 > 0:24:58See what he decides later on in the programme.
0:25:00 > 0:25:03Still to come - an unassuming one-bed in Carlisle proves
0:25:03 > 0:25:06a puzzling proposition.
0:25:06 > 0:25:09Well, it is a bit difficult to see how you can reconfigure this space.
0:25:12 > 0:25:13And we'll go back to Kent
0:25:13 > 0:25:17and find out how Tom's little changes became big ones.
0:25:17 > 0:25:21It was about what I could have hoped for with the major work that we did.
0:25:24 > 0:25:28But first, we are back in Bower Hinton in Somerset.
0:25:28 > 0:25:34It was here that Nick paid £205,000 for this three-bedroom cottage
0:25:34 > 0:25:38which came with a serious amount of space and potential outside.
0:25:38 > 0:25:41And a serious amount of work to be done inside.
0:25:41 > 0:25:46This was going to be Nick's first property project in ten years.
0:25:46 > 0:25:49He had left property development behind to work on other
0:25:49 > 0:25:52business ideas in the horse training industry.
0:25:52 > 0:25:56But with lower property prices attracting him back, I felt
0:25:56 > 0:26:01certain he wasn't holding the reins tight when it came to the finances.
0:26:01 > 0:26:05In terms of the actual build cost, I'm hoping to come in inside 60.
0:26:05 > 0:26:09- 60?!- Yeah.- What are you going to spend...? What...?- I know.
0:26:09 > 0:26:11- What are you going to do?!- Yeah!
0:26:11 > 0:26:15I look forward to seeing the sunken bath and the Roman amphitheatre
0:26:15 > 0:26:19and the cinema room and the helicopter landing pad!
0:26:19 > 0:26:20- I thought, on the basis...- 60?!
0:26:20 > 0:26:22..on the basis that everybody gets it wrong
0:26:22 > 0:26:25and they always go over budget, I'd start high and then when
0:26:25 > 0:26:29you come back I can say, "Well, actually, we managed to do it for 43!"
0:26:29 > 0:26:31- Yes, exactly. Or 20.- Yeah.- Wow!
0:26:32 > 0:26:35I know, I know, I did go on a bit about the budget, but I'm
0:26:35 > 0:26:40so used to people underestimating the work and what it will cost.
0:26:40 > 0:26:44So, did Nick's technique of bumping up his budget work?
0:26:44 > 0:26:47Did he manage to get anywhere with developing that humongous space
0:26:47 > 0:26:51and did he manage to give the cottage the wow factor?
0:26:51 > 0:26:54# All I can say is wow
0:26:54 > 0:26:56# It's like wow
0:26:56 > 0:26:58# Wow!
0:26:58 > 0:27:01# Deeper than I've ever been
0:27:01 > 0:27:04# Take it down
0:27:04 > 0:27:05# Down!
0:27:05 > 0:27:08# Right down to the sugar stream
0:27:08 > 0:27:10# If it's hot, if it's cold
0:27:10 > 0:27:12# It's got soul
0:27:12 > 0:27:14# Wow... #
0:27:14 > 0:27:18Downstairs sure is wow.
0:27:18 > 0:27:21And it's much more open and welcoming than it was.
0:27:23 > 0:27:27Er, well, this was originally two rooms in here.
0:27:27 > 0:27:30There was a glazed partition across here which we've taken out.
0:27:30 > 0:27:33And the kitchen was through in that room.
0:27:33 > 0:27:36So we got rid of the partition, made that room a utility,
0:27:36 > 0:27:39and knocked through the back of that room
0:27:39 > 0:27:42and have created a sort of downstairs WC and back door.
0:27:42 > 0:27:45Nick has certainly transformed the downstairs.
0:27:45 > 0:27:48Will upstairs have as much wow?
0:27:48 > 0:27:50# It's like wow
0:27:50 > 0:27:52# Wow!
0:27:52 > 0:27:55# Deeper than I've ever been
0:27:55 > 0:27:58# Take it down
0:27:58 > 0:28:00# Down!
0:28:00 > 0:28:03# Right down to the sugar stream
0:28:03 > 0:28:05# If it's hot, if it's cold
0:28:05 > 0:28:07# It's got soul
0:28:07 > 0:28:09# Wow... #
0:28:09 > 0:28:12I had hoped to see a fourth bedroom appear
0:28:12 > 0:28:17and thanks to some reconfiguration, this is now a four-bedroom house.
0:28:18 > 0:28:20The master bedroom has an en suite
0:28:20 > 0:28:23where the old, tatty family bathroom was.
0:28:23 > 0:28:28And the main bathroom has been created between the two front bedrooms. I love it!
0:28:28 > 0:28:30# But I like it, I love it
0:28:30 > 0:28:33# I want some more of it... #
0:28:33 > 0:28:37And the wow factor continues out the back with some landscaping and tidying throughout,
0:28:37 > 0:28:40as well as access created at the back of the property.
0:28:43 > 0:28:47Something I was really keen for Nick to explore was planning permission
0:28:47 > 0:28:50to build another property as the land that came with
0:28:50 > 0:28:54this lot was immense and there was certainly room for it.
0:28:54 > 0:28:57But, take note - having the space doesn't necessarily mean
0:28:57 > 0:28:59getting an OK from the council.
0:29:01 > 0:29:05I wasn't that hopeful, but we had to do our due diligence
0:29:05 > 0:29:07and investigate the possibility.
0:29:07 > 0:29:10And it was a fairly firm no on the grounds that the
0:29:10 > 0:29:15area of the garden we could have developed was outside
0:29:15 > 0:29:17the village development boundary
0:29:17 > 0:29:22and the whole area of the village is a conservation area anyway.
0:29:22 > 0:29:26So it was going to be extremely difficult to get the planning.
0:29:26 > 0:29:32However, there was another clever solution to the lay of the land where everyone won.
0:29:32 > 0:29:36What we have done is sold a small section of it to next door.
0:29:36 > 0:29:39There's a new fence gone up outside, so that helped.
0:29:41 > 0:29:43It's all looking tickety-boo.
0:29:43 > 0:29:47Nick had joked he would call his budget 60,000
0:29:47 > 0:29:50and hoped to come in at 43 and look clever.
0:29:50 > 0:29:54However, although he spent the upper budget of 60,000,
0:29:54 > 0:29:55he did do something clever.
0:29:55 > 0:29:58Nick has taken a salary for the work he's done -
0:29:58 > 0:30:01seven days a week, as it turned out!
0:30:01 > 0:30:04If you're not earning while doing up a property,
0:30:04 > 0:30:07that is a cost that has to be factored in
0:30:07 > 0:30:08if you are to be realistic
0:30:08 > 0:30:11about what profit you're really going to make.
0:30:11 > 0:30:14So, do always remember it's not just your materials,
0:30:14 > 0:30:16it's your time and labour.
0:30:17 > 0:30:19Talking of time,
0:30:19 > 0:30:22Nick had set himself a timescale of four to six months.
0:30:24 > 0:30:28I think, essentially, we've done six months work in four and a half,
0:30:28 > 0:30:32and it's been quite full-on... But it's been fine.
0:30:32 > 0:30:35And, for my money, it's been worth it, too.
0:30:35 > 0:30:39With the purchase price at auction of £205,000,
0:30:39 > 0:30:43and £60,000 spent on the work,
0:30:43 > 0:30:47Nick's total spend has been £265,000.
0:30:51 > 0:30:56Will two local estate agents be as impressed as I am with his work?
0:30:56 > 0:30:58I think the person who's renovated the property
0:30:58 > 0:31:00has done an exceptional job.
0:31:00 > 0:31:02I think they've done it to a very good standard.
0:31:02 > 0:31:05He's done some great touches with the open fire
0:31:05 > 0:31:08and the wood burner in the downstairs spaces.
0:31:08 > 0:31:10Wood burners are very popular at the moment,
0:31:10 > 0:31:13and are proving to be quite a cheap source of heat,
0:31:13 > 0:31:16and I think the utility and kitchen area are superb,
0:31:16 > 0:31:18and I think they'll have no problem selling it.
0:31:18 > 0:31:21I think the property presents very nicely indeed.
0:31:21 > 0:31:23I think they've maximised the potential,
0:31:23 > 0:31:25so it's going to be very appealing to families,
0:31:25 > 0:31:29escaping, perhaps, from more of a dense area in a town,
0:31:29 > 0:31:32they can have a good-sized plot
0:31:32 > 0:31:34and have vegetables, et cetera.
0:31:34 > 0:31:36The country living.
0:31:36 > 0:31:38Ah, the good life.
0:31:38 > 0:31:41But will Nick be seeing a good profit?
0:31:41 > 0:31:46Remember, his total spend on this place was £265,000.
0:31:46 > 0:31:51We would market the property at an asking price of £325,000.
0:31:51 > 0:31:57I would value this property £350,000-375,000.
0:31:57 > 0:31:59That's, er...very interesting,
0:31:59 > 0:32:03and the advice we've had is between those two figures,
0:32:03 > 0:32:06and we're currently marketing it at 350,
0:32:06 > 0:32:10so I don't think they're too wide of the mark - one high, one low.
0:32:10 > 0:32:13If Nick achieves his current asking price,
0:32:13 > 0:32:19he'll be looking at a pre-tax and expenses profit of £85,000,
0:32:19 > 0:32:24so I'm sure he'd agree that this lot was worth a gamble at the auction.
0:32:24 > 0:32:29But what about the future? Does it hold horses or houses?
0:32:29 > 0:32:33Oh, a bit of both. Can't say goodbye to horses completely.
0:32:33 > 0:32:35But for the time being, houses.
0:32:40 > 0:32:42From Nick's cosy cottage
0:32:42 > 0:32:45to a property of slightly grander proportions...
0:32:47 > 0:32:49..Carlisle Castle.
0:32:49 > 0:32:51This imposing medieval building
0:32:51 > 0:32:53is set in the border town of Carlisle,
0:32:53 > 0:32:57and has seen much strife among the peoples of either side.
0:32:58 > 0:33:02Personally, I don't think there'll ever be a war
0:33:02 > 0:33:04between England and Scotland again...
0:33:04 > 0:33:06Mind you, you never know.
0:33:06 > 0:33:09And if things did kick off, they'd probably start here in Carlisle -
0:33:09 > 0:33:13a Roman garrison town built to defend Hadrian's Wall,
0:33:13 > 0:33:18until this castle was built by King Henry I around 900 years ago.
0:33:18 > 0:33:24Well, before battle commences, I'm going to go and seek shelter.
0:33:24 > 0:33:28There are also striking remnants of the city's industrial past,
0:33:28 > 0:33:32as well as handsome period properties.
0:33:32 > 0:33:35Today's auction lot is a little smaller than a castle,
0:33:35 > 0:33:40but from tiny acorns... or is that "bijou" acorns?
0:33:40 > 0:33:44I don't know about you, but I've always quite liked the word "bijou".
0:33:44 > 0:33:49Unless, that is, it's forming part of the description of a property,
0:33:49 > 0:33:53when generally it's just another word for small.
0:33:53 > 0:33:54Well, in this instance,
0:33:54 > 0:33:57small but perfectly formed is what I'm here to see.
0:33:57 > 0:34:01A one-bedroom flat at a guide price of £35,000 -
0:34:01 > 0:34:04plus, it shouldn't take us too long to look around.
0:34:05 > 0:34:06Ooh!
0:34:10 > 0:34:13Looks all right. Living room over that way,
0:34:13 > 0:34:15but facing you when you come through the front door is the kitchen.
0:34:15 > 0:34:19It's quite a nice size - just units down one side of the room,
0:34:19 > 0:34:21which I think works quite well,
0:34:21 > 0:34:23it gives you a chance to have a kitchen table over there.
0:34:23 > 0:34:26Yeah, it's nice - for the size of the flat, it's brilliant.
0:34:26 > 0:34:28Through this way, um, a bit sort of...
0:34:28 > 0:34:31Pfft! ..jiggery-pokery going on here.
0:34:31 > 0:34:32We've got the bathroom -
0:34:32 > 0:34:35actually it's a toilet with a shower in it back there,
0:34:35 > 0:34:37a bit of storage there, and then through to the one bedroom.
0:34:37 > 0:34:39Yeah, it's good!
0:34:39 > 0:34:43# Mm, c'est si bon
0:34:43 > 0:34:47# Lovers say that in France
0:34:47 > 0:34:51# When they thrill to romance
0:34:51 > 0:34:55# It means that it's so good... #
0:34:55 > 0:34:56C'est bon, indeed.
0:34:56 > 0:35:00And the bedroom isn't too petit either.
0:35:00 > 0:35:03There are rather a lot of doors in this back area,
0:35:03 > 0:35:06and maybe there could be some streamlining.
0:35:06 > 0:35:08But overall the rooms are all a good size,
0:35:08 > 0:35:10if not particularly fashionable.
0:35:10 > 0:35:13There are signs of damp here and there,
0:35:13 > 0:35:16but I don't think they're too bothersome.
0:35:16 > 0:35:18Outside, the brickwork looks in good order,
0:35:18 > 0:35:22and actually rather nice, in some rare British sunshine.
0:35:22 > 0:35:25The front has some good, functional double-glazed windows,
0:35:25 > 0:35:27which are, today, de rigueur.
0:35:27 > 0:35:30How about the back?
0:35:30 > 0:35:33Well, it's already shaping up to be a pretty good flat for the money,
0:35:33 > 0:35:36so you're not necessarily expecting much outside space,
0:35:36 > 0:35:39but the good news is you have actually got some.
0:35:39 > 0:35:41This little courtyard area here, some plants,
0:35:41 > 0:35:44some hanging baskets, that'd really make this rather pleasant,
0:35:44 > 0:35:48and on top of that, you've also got access - or shared access -
0:35:48 > 0:35:51to this little bit of - well, scrubland, at the moment.
0:35:51 > 0:35:53But that could be a decent garden as well.
0:35:53 > 0:35:57So, just two added bonuses - yeah, it's good news.
0:35:59 > 0:36:00With a one-bedroom property,
0:36:00 > 0:36:03any way to get that extra feeling of space
0:36:03 > 0:36:06and somewhere to escape to is highly desirable.
0:36:06 > 0:36:09And, yes, right now it's low-maintenance,
0:36:09 > 0:36:12but could easily be a bit more spruced up
0:36:12 > 0:36:14if that was what was wanted.
0:36:14 > 0:36:17Otherwise, it's a good spot to place a table and chairs,
0:36:17 > 0:36:20or even a sun lounger, if the weather stays like this.
0:36:21 > 0:36:24Is there anything else that could be done to make this
0:36:24 > 0:36:25more of a dream pad?
0:36:27 > 0:36:29Well, it is a bit difficult to see how you could really
0:36:29 > 0:36:31reconfigure the space in here.
0:36:31 > 0:36:34I mean, maybe knock down some of these walls, that wall there,
0:36:34 > 0:36:37make it a bigger kitchen that you just walk straight into
0:36:37 > 0:36:39off the road - I mean, you could go completely over the top
0:36:39 > 0:36:41and take this wall out,
0:36:41 > 0:36:43to give a huge great living-kitchen-dining...
0:36:43 > 0:36:46everything area, if you like.
0:36:46 > 0:36:48I mean, so many options - yeah!
0:36:48 > 0:36:50Alternatively, of course...
0:36:50 > 0:36:53you could pretty much just leave it as it is.
0:36:53 > 0:36:55I mean, right in the city centre of Carlisle,
0:36:55 > 0:36:59like it is, there's always going to be a market for one-bedroom flats,
0:36:59 > 0:37:02so maybe a lick of paint, quick vacuum around...
0:37:02 > 0:37:04Yeah. Be fine.
0:37:04 > 0:37:07Actually, it's quite cosy as it is.
0:37:08 > 0:37:09Very cosy.
0:37:11 > 0:37:13# Dream
0:37:13 > 0:37:16# Dream, dream, dream... # MUSIC SLOWS AND FADES
0:37:17 > 0:37:20- SPEECH ECHOES:- Too many doors...
0:37:20 > 0:37:21Ooh!
0:37:21 > 0:37:23Too many doors. Too many doors!
0:37:23 > 0:37:25Too many doors!
0:37:25 > 0:37:29Oh...bit damp. Too many doors!
0:37:29 > 0:37:31Got to find a way out... Too many doors...
0:37:31 > 0:37:32Aah!
0:37:34 > 0:37:35HE COUGHS
0:37:37 > 0:37:40It was just a dream. Phew!
0:37:40 > 0:37:44# So, wake me up when it's all over
0:37:44 > 0:37:48# When I'm wiser and I'm older
0:37:48 > 0:37:52# All this time I was finding myself
0:37:52 > 0:37:56# And I didn't know I was lost... #
0:37:56 > 0:38:01Well, I've certainly woken up to the great flat on offer here,
0:38:01 > 0:38:04and I think that whether you like lots of doors or not,
0:38:04 > 0:38:07and whether you want a bath in your bathroom or not,
0:38:07 > 0:38:11this could be a great starter home or a rental goldmine.
0:38:13 > 0:38:15We invited a local property expert
0:38:15 > 0:38:18to cast his eye over this leasehold flat
0:38:18 > 0:38:21guided at 35,000-plus.
0:38:21 > 0:38:24First impressions on walking round, it's very nice -
0:38:24 > 0:38:26one-bedroom ground floor flat.
0:38:26 > 0:38:29It all seems to be in good order, it just could do with a new kitchen,
0:38:29 > 0:38:32maybe a little bit of upgrading and decorating, really.
0:38:32 > 0:38:34Apart from that, it's good to go.
0:38:34 > 0:38:38Who did he think a flat like this would be best marketed to?
0:38:38 > 0:38:41A property like this could appeal to an investor,
0:38:41 > 0:38:43or even first-time buyer looking for a flat,
0:38:43 > 0:38:45get his first foot on the property ladder,
0:38:45 > 0:38:49because it's relatively cheap, it's not going to be too expensive,
0:38:49 > 0:38:52and it suits a multitude of people, really.
0:38:52 > 0:38:55And how much did he think it could be worth on the rental market?
0:38:55 > 0:38:58A property like this, if it was on the rental market,
0:38:58 > 0:39:01should achieve around £350 per calendar month.
0:39:02 > 0:39:04And on the sale side?
0:39:04 > 0:39:05Once fully renovated,
0:39:05 > 0:39:11this property should achieve around £55,000 on the open market.
0:39:14 > 0:39:19So, who fancied this bijou corner flat when it went to the auctions?
0:39:19 > 0:39:23Well, I'm pretty sure it wouldn't have given anyone there nightmares.
0:39:23 > 0:39:26Let's find out who bought it when it went under the hammer.
0:39:30 > 0:39:33£35,000 guide, who's here for this?
0:39:36 > 0:39:3835.
0:39:38 > 0:39:41Thought not. At £25,000.
0:39:41 > 0:39:4425 here. At 25, I'm bid.
0:39:44 > 0:39:45At 25 in once.
0:39:46 > 0:39:4826, 27...
0:39:48 > 0:39:5128, 29...
0:39:51 > 0:39:5329, I've got. 30.
0:39:53 > 0:39:5531.
0:39:55 > 0:39:5832, 33....
0:39:58 > 0:40:0134, 35, 36...
0:40:03 > 0:40:05Thinking about it. With you, sir.
0:40:05 > 0:40:08At £35,000.
0:40:08 > 0:40:10We're in the market, we're here to sell.
0:40:10 > 0:40:13£35,000, first time.
0:40:13 > 0:40:1635, second time.
0:40:16 > 0:40:19You're out. £35, 000, then...
0:40:19 > 0:40:23Third and final time, all done, all out, selling away, then.
0:40:23 > 0:40:25To you, sir, Congratulations.
0:40:25 > 0:40:29The hammer fell on the guide price of 35,000.
0:40:29 > 0:40:32A bid placed by Brian and his wife Joanne.
0:40:32 > 0:40:37Brian owns a skip company, and Joanne owns a nursery.
0:40:37 > 0:40:39It was she who I met back at the property
0:40:39 > 0:40:43to find out more about their choice to purchase this pad.
0:40:44 > 0:40:48# Her name was Joanne
0:40:48 > 0:40:56# And she lived in a meadow by a pond... #
0:40:56 > 0:40:59- Joanne, good to meet you.- Yes. Nice to meet you, too, Martin.
0:40:59 > 0:41:01- Congratulations!- Thank you.
0:41:01 > 0:41:04- Um, good little flat, actually. - Yeah, lovely.
0:41:04 > 0:41:07- It is, it's really nice. - Tell me why you wanted to buy it.
0:41:07 > 0:41:10The price was right, and we were looking to invest in property,
0:41:10 > 0:41:13and we'd been to quite a few auctions,
0:41:13 > 0:41:16and some of them were just too expensive,
0:41:16 > 0:41:19so we chose to bid on this one, and we were fortunate to get it.
0:41:19 > 0:41:23So is it an investment purchase, then, or for you, or what?
0:41:23 > 0:41:26Yeah, it's an investment purchase for myself and my husband,
0:41:26 > 0:41:29and we're looking at renting the property in the future.
0:41:29 > 0:41:32Right, so what were you looking for, what were your criteria?
0:41:32 > 0:41:34Something that was easy to maintain
0:41:34 > 0:41:36and didn't need too much work done on it,
0:41:36 > 0:41:41- and a quick turnover and get the tenant in.- Right.
0:41:41 > 0:41:43Well, you certainly ticked all the boxes here, I think.
0:41:43 > 0:41:46- Bit of damp here and there you're going to sort out...- Yeah.
0:41:46 > 0:41:49..but apart from that, any major plans for it?
0:41:49 > 0:41:50I think the main plan is the damp,
0:41:50 > 0:41:53and I think the kitchen floor will actually need to be lifted,
0:41:53 > 0:41:57and the plasterwork taken off in the kitchen and then re-laid
0:41:57 > 0:42:00and replastered, and then decorated again.
0:42:00 > 0:42:02And then some paint, presumably?
0:42:02 > 0:42:04Yeah, decorate each of the rooms -
0:42:04 > 0:42:07I think a lot of it's wallpaper that you can paint on top of,
0:42:07 > 0:42:11so we'll be looking at touching that up, and freshening it up
0:42:11 > 0:42:14in the bedroom and the living room and what have you.
0:42:14 > 0:42:16OK. And what's the budget?
0:42:16 > 0:42:18- Um, 2,000-2,500.- Oh, wow!
0:42:18 > 0:42:21- Leave the bathroom as it is, then, pretty much.- Yes,
0:42:21 > 0:42:22I don't think we'd get a bath in there,
0:42:22 > 0:42:25we'll just stick with the shower that's currently there,
0:42:25 > 0:42:27which looks to be in good condition, so, yeah.
0:42:28 > 0:42:30That budget does sound small,
0:42:30 > 0:42:33but there's not a great deal to do here beyond the cosmetic,
0:42:33 > 0:42:36so long as those damp patches in the kitchen, especially,
0:42:36 > 0:42:39aren't signs of anything too sinister.
0:42:39 > 0:42:41Joanne and her husband will be bringing in experts
0:42:41 > 0:42:45to do that part of the work, but are also planning on being very hands-on
0:42:45 > 0:42:49themselves, and want to get the flat shipshape in four to six weeks,
0:42:49 > 0:42:52for it then to go for rent as a furnished let.
0:42:54 > 0:42:57Do you know what kind of money you might get, renting it out?
0:42:57 > 0:43:01- Probably 350...- Mm-hm.- ..a month, and we are looking at furnishing it,
0:43:01 > 0:43:04so possibly a little bit more.
0:43:04 > 0:43:06So, have you looked into the pros and cons
0:43:06 > 0:43:08of furnished versus unfurnished?
0:43:08 > 0:43:10I have, I've done my homework on the internet,
0:43:10 > 0:43:12I've looked at what's already available in the city...
0:43:12 > 0:43:17- What difference does it make? - Maybe about £20 a month.- Right.
0:43:17 > 0:43:19- Um...- Worth the bother, then, or not?
0:43:19 > 0:43:21Yeah, I think so. Definitely, yeah.
0:43:21 > 0:43:24Especially if you've got somebody coming from away,
0:43:24 > 0:43:27that maybe doesn't want to start and buy furniture,
0:43:27 > 0:43:32they're moving to the area with work, then I think it may rent
0:43:32 > 0:43:35better for somebody maybe in a professional capacity.
0:43:35 > 0:43:38- Right, having it furnished. - Mm, having it furnished.
0:43:38 > 0:43:40- Well, congratulations.- Thank you. - Good luck with it,
0:43:40 > 0:43:43- and we look forward to seeing how you get on.- Thank you, Martin.
0:43:45 > 0:43:48Well, I think Joanne's got herself a good little property here,
0:43:48 > 0:43:51but I am a little bit concerned about that budget. £2,000?
0:43:51 > 0:43:53I hope that's going to be enough.
0:43:53 > 0:43:57You can find out how she gets on sorting it out later in the show.
0:44:00 > 0:44:04Now, if you want to profit from property, timing is crucial,
0:44:04 > 0:44:06and it's not always easy to get it right.
0:44:06 > 0:44:08Yes, don't let time pass you by.
0:44:08 > 0:44:10Let's see how today's buyers got on.
0:44:15 > 0:44:17We return now to Chatham in Kent,
0:44:17 > 0:44:21to this three-bed terrace in the middle of a very steep street.
0:44:23 > 0:44:28I say three bedroom, but the third was off the second, so never ideal.
0:44:28 > 0:44:31This house had its ups and downs, with a downstairs loo
0:44:31 > 0:44:33and an upwards garden.
0:44:33 > 0:44:35I thought this could be a great rental,
0:44:35 > 0:44:39but first-time developer and first-time dad Tom
0:44:39 > 0:44:41bought it at auction for 86,000
0:44:41 > 0:44:46and planned, after spending a ten-grand budget, to flip it.
0:44:46 > 0:44:49He didn't plan to do anything radical in this two-month timescale,
0:44:49 > 0:44:52but move the stairs and the bathroom.
0:44:52 > 0:44:56But with houses around here going for around 100 grand,
0:44:56 > 0:44:58well, I was worried.
0:44:58 > 0:44:59Where's your profit?
0:44:59 > 0:45:04Erm...I've got no expectations of making a huge amount on my first go.
0:45:04 > 0:45:09- I do want to make, hopefully, at least ten.- OK.
0:45:09 > 0:45:12So, you know, if I can keep things relatively cheap,
0:45:12 > 0:45:15I do think there's a potential to make hopefully around ten.
0:45:17 > 0:45:20Three months later, it's time to find out
0:45:20 > 0:45:22if Tom has kept to his plan
0:45:22 > 0:45:25and if he's going to squeeze any profit out of this project.
0:45:32 > 0:45:35Tom, on a friend's advice, decided to move the stairs
0:45:35 > 0:45:40in order to create an open-plan living area downstairs,
0:45:40 > 0:45:42which also means the newly-fitted kitchen
0:45:42 > 0:45:44seems more spacious than before.
0:45:57 > 0:45:59Moving the stairs also means
0:45:59 > 0:46:01Tom has been able to create a hallway upstairs,
0:46:01 > 0:46:04therefore making an entrance for the third bedroom.
0:46:12 > 0:46:15The two larger bedrooms have been plastered,
0:46:15 > 0:46:16painted and brightened up.
0:46:26 > 0:46:29The back garden has been tidied.
0:46:30 > 0:46:34The bathroom, through the kitchen, has also been polished up.
0:46:36 > 0:46:38But it's the turning of the stairs
0:46:38 > 0:46:42and the third bedroom entrance that makes the most difference here.
0:46:43 > 0:46:46OK, so where I'm standing here was a cupboard,
0:46:46 > 0:46:49which obviously the staircase ended at a different side.
0:46:49 > 0:46:53So what we've done is knock away these two walls,
0:46:53 > 0:46:54change the staircase around.
0:46:54 > 0:46:55What that's allowed us to do now
0:46:55 > 0:46:59is create separate access to the third bedroom.
0:46:59 > 0:47:01We've put this partition wall in here,
0:47:01 > 0:47:04which has made that bedroom slightly smaller.
0:47:04 > 0:47:07But still a good size double,
0:47:07 > 0:47:10and then obviously the corridor that meets the third bedroom,
0:47:10 > 0:47:12making it a full three-bed house.
0:47:15 > 0:47:18Originally, Tom had said he wouldn't move the stairs due to cost,
0:47:18 > 0:47:21but having consulted an estate agent friend,
0:47:21 > 0:47:24Tom's decision to move them and create
0:47:24 > 0:47:26an open-plan living area downstairs,
0:47:26 > 0:47:31and a third bedroom upstairs, is an inspired one.
0:47:31 > 0:47:33So what other work has he undertaken here?
0:47:36 > 0:47:40Kitchen, changed. Believe it or not, it's a second-hand kitchen.
0:47:40 > 0:47:42Found a little online bargain.
0:47:42 > 0:47:43Bathroom's still got work to do.
0:47:43 > 0:47:48Unfortunately the house is 95% complete. A few little touch-ups.
0:47:48 > 0:47:50Garden - a few touch-ups.
0:47:51 > 0:47:53You know, couldn't really do too much with it,
0:47:53 > 0:47:55but just a neaten-up out the back.
0:47:55 > 0:47:57Yeah, generally that's the job complete.
0:47:59 > 0:48:01Tom used professionals to move the stairs
0:48:01 > 0:48:03and to fit the supporting joists,
0:48:03 > 0:48:04but with a little help
0:48:04 > 0:48:07from his partner Emma and his cute son Charlie,
0:48:07 > 0:48:10he was able to do a lot of the work himself.
0:48:10 > 0:48:14However, because he changed his plan, so has his two-month schedule.
0:48:16 > 0:48:18It is a fraction over three months.
0:48:19 > 0:48:22Yeah, three months and really only a few days' work left.
0:48:22 > 0:48:24A few touch-ups here and there.
0:48:24 > 0:48:28Bits of skirting, little bit of painting and making good.
0:48:28 > 0:48:31But, yeah, three months is about what I could have hoped for
0:48:31 > 0:48:34with the major work that we did.
0:48:35 > 0:48:39Major work it is. He's done a lot more than he intended.
0:48:39 > 0:48:42I'm even more worried that he won't make any profit.
0:48:42 > 0:48:44So how much has he spent?
0:48:46 > 0:48:49We've spent all the money we needed to. It's at 11,500.
0:48:49 > 0:48:51So I'm quite pleased with that.
0:48:51 > 0:48:56We probably spent about 6,000-7,000 with the whole staircase changing,
0:48:56 > 0:49:01which has involved a gas fee, certifying the steels.
0:49:01 > 0:49:03So there's a lot of costs gone into that.
0:49:03 > 0:49:06Well, that's not too bad. Phew!
0:49:06 > 0:49:11That means Tom's spent a total of £97,500.
0:49:11 > 0:49:15Will these radical changes be enough to make this house rocket
0:49:15 > 0:49:19through the £100,000 ceiling price the agent told us about earlier?
0:49:22 > 0:49:25Two local property experts came along to give us their opinion.
0:49:25 > 0:49:27I loved the staircase going through the middle.
0:49:27 > 0:49:31I think it really adds to the value of the house and space.
0:49:31 > 0:49:34He's turned the stairs around, he's opened it all up
0:49:34 > 0:49:37so it does give it that more modern feel to it
0:49:37 > 0:49:39in what is a very old property.
0:49:41 > 0:49:45Was creating the third bedroom entrance a worthwhile exercise?
0:49:45 > 0:49:47I definitely think it was worth moving the stairs
0:49:47 > 0:49:50and creating that third bedroom.
0:49:50 > 0:49:52It will add value to the house for sure.
0:49:52 > 0:49:56I think it's a good idea to try to create that third bedroom.
0:49:56 > 0:49:59You have to think about the cost to achieve that
0:49:59 > 0:50:01and your end result to make the decision
0:50:01 > 0:50:03as to whether you do that or not.
0:50:04 > 0:50:08If the property was up for rental, what could Tom charge?
0:50:08 > 0:50:13You could achieve a figure in the region of £750 per calendar month.
0:50:13 > 0:50:19I expect to achieve around £600-625 per calendar month.
0:50:19 > 0:50:22And if he was to sell on, what would be the valuation?
0:50:22 > 0:50:27I would expect it to achieve within the region of 100,000 to £110,000.
0:50:27 > 0:50:33I'd recommend the price from £115,000 to £125,000.
0:50:33 > 0:50:36The work we've done and the advice I've been given,
0:50:36 > 0:50:41I think the higher one... Realistic to start at about 120, 125.
0:50:41 > 0:50:43But I think 115's the goal here.
0:50:43 > 0:50:45If we can get 115, I'll be very happy.
0:50:46 > 0:50:48It's good that Tom is being realistic.
0:50:48 > 0:50:52It means he's much more likely to achieve that quick sale he wants.
0:50:52 > 0:50:57115,000 would give him a profit of 17,500 grand,
0:50:57 > 0:50:59minus taxes and fees.
0:51:00 > 0:51:04So the gamble of spending more time and money has paid off.
0:51:05 > 0:51:08Now, are Tom and baby Charlie game for another project?
0:51:09 > 0:51:12Yeah, the goal is to sell this and get straight on to the next one.
0:51:12 > 0:51:13Can't wait.
0:51:20 > 0:51:23We're back in Carlisle and another first-time investment.
0:51:23 > 0:51:26Joanne was also hoping to spend very little renovating
0:51:26 > 0:51:32the one-bedroomed flat she'd bought with husband Brian for £35,000.
0:51:32 > 0:51:34So did she manage to stick to her plan?
0:51:35 > 0:51:37There wasn't much work to be done.
0:51:37 > 0:51:41But to rent out furnished or not furnished, that was the question.
0:51:45 > 0:51:47So have you looked into the pros and cons
0:51:47 > 0:51:49of furnished versus unfurnished?
0:51:49 > 0:51:51I have. I've done my homework on the internet,
0:51:51 > 0:51:53I've looked at what's already available in the city.
0:51:53 > 0:51:55What difference does it make?
0:51:55 > 0:51:58- Maybe about £20 a month.- Right.
0:51:58 > 0:52:02- Worth the bother, then, or not? - Yeah, I think so, definitely, yeah.
0:52:02 > 0:52:06So with a plan in place, it was time to get to work.
0:52:06 > 0:52:09We're now back three months after I first met Joanne
0:52:09 > 0:52:11to see how it all looks now.
0:52:30 > 0:52:32Much better.
0:52:32 > 0:52:35Clean, fresh and simple is the order of the day.
0:52:37 > 0:52:41My main concern here was the damp, which was primarily in the kitchen.
0:52:43 > 0:52:44So in the kitchen,
0:52:44 > 0:52:48we've knocked off the plaster to about a metre and a half height,
0:52:48 > 0:52:51injected it with the damp-proof course.
0:52:51 > 0:52:56Replastered, decorated throughout. New flooring and new appliances.
0:52:57 > 0:52:59All sounds simple enough.
0:52:59 > 0:53:03But fixing the damp wasn't entirely smooth sailing.
0:53:03 > 0:53:07We'd had the decorators come in while we were away on holiday.
0:53:07 > 0:53:10We thought, "Great, the job will be finished when we get back."
0:53:10 > 0:53:11Then when we came back,
0:53:11 > 0:53:13it looked as though somebody had thrown a bucket of water
0:53:13 > 0:53:16at the bedroom and the living room walls, so the damp...
0:53:16 > 0:53:18It had pushed the damp through into the other rooms.
0:53:18 > 0:53:20So we had to start all over again
0:53:20 > 0:53:24and knock off the plaster in the bedroom and the living room.
0:53:26 > 0:53:27Nightmare.
0:53:27 > 0:53:30And just goes to show that sometimes fixing one problem
0:53:30 > 0:53:31can create another.
0:53:32 > 0:53:35In this case, however, it did mean the living room got a bit
0:53:35 > 0:53:39more of a make-over than was originally planned.
0:53:41 > 0:53:43In the living room, we've knocked off the plaster
0:53:43 > 0:53:45to a metre and a half high,
0:53:45 > 0:53:48we've injected the damp-proof course right round -
0:53:48 > 0:53:51replastered, redecorated.
0:53:51 > 0:53:55We've put in a new flooring and also the new fire.
0:53:55 > 0:53:56That used to be an old gas fire.
0:53:56 > 0:53:59We've replaced it with an electric fire.
0:54:00 > 0:54:02The room has also been furnished.
0:54:02 > 0:54:05Although I wasn't convinced that furnishing the property
0:54:05 > 0:54:06would be worth it,
0:54:06 > 0:54:11there's no doubt Joanne has a lovely eye for interior decor.
0:54:11 > 0:54:14She and her husband did a lot of the work themselves
0:54:14 > 0:54:19and enlisted family to help out, including daughter Lucy,
0:54:19 > 0:54:21who's just putting the finishing touches
0:54:21 > 0:54:23on the newly painted back wall.
0:54:23 > 0:54:25The problems with the damp-proofing meant the job
0:54:25 > 0:54:29has taken three months, rather than the planned four to six weeks,
0:54:29 > 0:54:32but how did the £2,500 budget fare?
0:54:33 > 0:54:36We've come in at just over 3,000.
0:54:38 > 0:54:41With the additional problem of the damp and the finished look
0:54:41 > 0:54:47of the place being so good, I think a £3,000 spend is pretty impressive.
0:54:47 > 0:54:50Added to the £35,000 purchase price at the auction,
0:54:50 > 0:54:53the total spend here has been £38,000.
0:54:54 > 0:54:56This is planned to be the first of many,
0:54:56 > 0:54:58so has Joanne enjoyed the experience?
0:55:00 > 0:55:03Yeah, definitely. I think it can become quite addictive, really.
0:55:03 > 0:55:08We're already looking out for other properties that might kind of
0:55:08 > 0:55:12take our fancy and would benefit from being renovated.
0:55:12 > 0:55:17Putting the furniture into it - I love that bit the best.
0:55:17 > 0:55:19When it's all given a bit of tender love and care.
0:55:19 > 0:55:21So, yeah.
0:55:21 > 0:55:24A success, then, in terms of job satisfaction for sure.
0:55:28 > 0:55:32We invited two local property experts to cast their eyes
0:55:32 > 0:55:35over Joanne's handiwork, including the one who viewed it with us
0:55:35 > 0:55:36last time we were here.
0:55:38 > 0:55:41Is there anything he particularly likes about this place?
0:55:43 > 0:55:45The fact that it's finished off to a really nice standard.
0:55:45 > 0:55:47It's got a good sized kitchen,
0:55:47 > 0:55:49we've got room in there for a dining table as well.
0:55:49 > 0:55:52It's a great location for rental for the hospital.
0:55:52 > 0:55:55It's handy for the local shops and the town as well.
0:55:55 > 0:55:58It's not over the top, but it's been done well.
0:55:58 > 0:56:01The living space is separated from the bedroom and the bathroom,
0:56:01 > 0:56:03which is great, by the little back lobby.
0:56:03 > 0:56:04That works well.
0:56:05 > 0:56:11The decoration is neutral. Bathroom's modern, kitchen's modern.
0:56:11 > 0:56:12It's ready to go.
0:56:12 > 0:56:15When the vendor bought the property, it was in relatively good order.
0:56:15 > 0:56:16It looked... It was OK.
0:56:16 > 0:56:19I know she's had done quite a lot of work to the place.
0:56:19 > 0:56:21But most of that's hidden away that you can't see.
0:56:22 > 0:56:23It's a good flat.
0:56:25 > 0:56:27The total cost of the property including all the work
0:56:27 > 0:56:31and the furnishings was £38,000.
0:56:31 > 0:56:32The idea was to rent,
0:56:32 > 0:56:37but could some notable sales figure suggestions change the plan?
0:56:37 > 0:56:40What would these experts market it at sale wise?
0:56:41 > 0:56:46I think the property will achieve in the range of £55,000 to £60,000.
0:56:46 > 0:56:47If the property came on the market,
0:56:47 > 0:56:50it should be advertised in the region of £59,995.
0:56:52 > 0:56:55Well, they're both great valuations. Yeah, brilliant.
0:56:56 > 0:57:01So a potential profit of £22,000 before tax and expenses.
0:57:01 > 0:57:03I'd be tempted, but not Joanne.
0:57:03 > 0:57:06She and her husband really want to rent this,
0:57:06 > 0:57:08and that's the course they're sticking to.
0:57:08 > 0:57:10So what rental prices could they demand?
0:57:13 > 0:57:15For a one-bedroomed ground floor flat in this location,
0:57:15 > 0:57:17I should imagine you would be looking between
0:57:17 > 0:57:20350 and £400 per calendar month.
0:57:20 > 0:57:22I think the rental market is probably the best way forward
0:57:22 > 0:57:24for this property in the current climate.
0:57:24 > 0:57:28It should be able to achieve in its condition £375 per calendar month.
0:57:29 > 0:57:32Great. Well, we've pitched it at 380 per calendar month,
0:57:32 > 0:57:34so that's kind of in the middle. I'm happy with that.
0:57:36 > 0:57:41That £380 per calendar month would yield a massive 12%,
0:57:41 > 0:57:44and I really think Joanne's done a top job
0:57:44 > 0:57:46on her first property venture.
0:57:46 > 0:57:47So does she have any advice
0:57:47 > 0:57:51for people who want to follow in her footsteps?
0:57:51 > 0:57:54Obviously do your homework, look at the legal pack.
0:57:54 > 0:57:57Visit the property, which I know a lot of people don't actually do.
0:57:59 > 0:58:00Just go for it.
0:58:00 > 0:58:03She took the words right out of my mouth.
0:58:06 > 0:58:07Well, that's it for now.
0:58:07 > 0:58:10But we'll have lots more great stories for you next time
0:58:10 > 0:58:12on Homes Under The Hammer.
0:58:12 > 0:58:13So make sure you join us then.
0:58:13 > 0:58:16- Goodbye.- Goodbye.