0:00:02 > 0:00:04- Welcome to the programme.- Even in these more challenging times,
0:00:04 > 0:00:07we're fascinated by the world of property.
0:00:07 > 0:00:09Martin and I love the idea of getting a good deal,
0:00:09 > 0:00:11but it's not always that easy.
0:00:11 > 0:00:13No, but one way you can stack the odds in your favour
0:00:13 > 0:00:15is by going to the auctions.
0:00:41 > 0:00:46Buying properties under the hammer has become even more popular these days.
0:00:46 > 0:00:50Millions of pounds of property are sold around the UK every year.
0:00:50 > 0:00:52So let's look at the three properties that
0:00:52 > 0:00:55got our expectant buyers going on today's show.
0:00:57 > 0:01:01If you want a view, then this three-bed semi in Telford has it.
0:01:01 > 0:01:04But there's something about this property I can't get a handle on.
0:01:04 > 0:01:06Hm! Erm...
0:01:07 > 0:01:11In Folkestone, a building where it's all about finding the right level.
0:01:11 > 0:01:15If this flat was on the ground floor, it would be worth 10 grand more.
0:01:17 > 0:01:21With a £90,000 guide price for this Cornish bungalow, will its
0:01:21 > 0:01:25buyer be cracking open the champagne or cracking under the strain?
0:01:25 > 0:01:26What an odd place for a crack.
0:01:28 > 0:01:30All these properties have been sold at auction.
0:01:30 > 0:01:33We'll find out who bought them and what they paid for them...
0:01:33 > 0:01:3598, on the phone now.
0:01:35 > 0:01:37..when they went under the hammer.
0:01:40 > 0:01:44Today, I'm in the 1950s housing estate of Overdale,
0:01:44 > 0:01:47in Shropshire, which sits in the shadow of a well-known
0:01:47 > 0:01:51local landmark, the Great Wrekin Hill.
0:01:53 > 0:01:58Legend claims it was made by a giant on his way to drown local inhabitants,
0:01:58 > 0:02:00by making a dam off the River Severn.
0:02:01 > 0:02:06However, he was met by a sweet-talking Shrewsbury shoemaker,
0:02:06 > 0:02:10who persuaded him to abandon his murderous mission.
0:02:10 > 0:02:13The giant downed tools and threw away his spade full of earth,
0:02:13 > 0:02:16thus creating Wrekin Hill.
0:02:19 > 0:02:22Well, you'll have lots of chance to ruminate on
0:02:22 > 0:02:25whether or not the legend of the Giant of Wrekin Hill
0:02:25 > 0:02:27is true or not from the property I'm here to see.
0:02:27 > 0:02:32Because it does have a fantastic view of the very hill itself.
0:02:32 > 0:02:37The guide price was £65,000 plus, three bedrooms, semi-detached, let's take a look.
0:02:38 > 0:02:42Now, with a semi-detached like this you normally know
0:02:42 > 0:02:44what you're going to find when you come through the front door.
0:02:44 > 0:02:48Stairs facing you, living room off to the left. Not here, though.
0:02:48 > 0:02:52The stairs are there, the living room dual aspect is over there,
0:02:52 > 0:02:54and a very nice room it is too.
0:02:54 > 0:02:58But facing you is this room...what's this all about?
0:02:58 > 0:03:01Is it a utility area? I don't know what it is.
0:03:01 > 0:03:03It looks like there's an exterior door there,
0:03:03 > 0:03:07so at some stage maybe that was like a porch or something? Don't know.
0:03:07 > 0:03:10Whatever it is, not very good. What is, however, is this.
0:03:10 > 0:03:13Looks like this is a fairly new electrical installation,
0:03:13 > 0:03:15sure enough, date there, 2010.
0:03:16 > 0:03:19So that's going to save you a bit of money.
0:03:19 > 0:03:22Clearly, though, this wall here wants to come out.
0:03:22 > 0:03:26Because it would then open up what is a half-decent sized
0:03:26 > 0:03:28kitchen into something which would be really spectacular.
0:03:28 > 0:03:31A really nice-sized space, so definitely that wall's going to go.
0:03:31 > 0:03:34Kitchen, then, obviously needs a bit of work. Erm...
0:03:36 > 0:03:37What's that?
0:03:39 > 0:03:40Hm! Erm...
0:03:41 > 0:03:46Maybe an odd screwdriver thing for screwing in odd things on the wall?
0:03:46 > 0:03:50Or, maybe something which the giant used for eating his spaghetti?
0:03:50 > 0:03:54Or an old fashioned washing dolly, used for hand-washing clothes, perhaps?
0:03:57 > 0:03:59No. Used by the giant for his spaghetti.
0:04:08 > 0:04:11On the subject of fine dining,
0:04:11 > 0:04:14as you can see, there's plenty of room for a dining table
0:04:14 > 0:04:17and chairs in this generously proportioned living room.
0:04:17 > 0:04:20As with the electrics, it looks like the double glazing
0:04:20 > 0:04:24and central heating have all been done fairly recently.
0:04:24 > 0:04:29Although, decor-wise, all down here needs some serious TLC.
0:04:29 > 0:04:31How about up top?
0:04:33 > 0:04:37So, upstairs, is there enough room for a giant? Big question.
0:04:37 > 0:04:39Well, maybe. Decent sized bedroom there.
0:04:39 > 0:04:42Slightly smaller bedroom towards the back.
0:04:42 > 0:04:44A separate toilet and bathroom.
0:04:44 > 0:04:46Now, if you put a bit of a hand washing basin in there,
0:04:46 > 0:04:50toilet with wash basin and then your separate bathroom, I think
0:04:50 > 0:04:51that's an ideal combination.
0:04:51 > 0:04:55And then through into the second bedroom,
0:04:55 > 0:04:59the second front bedroom, if you know what I mean? Yes, pretty good.
0:04:59 > 0:05:03In fact, a really solid family house.
0:05:03 > 0:05:06And having a wander around means I got to spot
0:05:06 > 0:05:08some of the great views from the front room windows.
0:05:10 > 0:05:15This house really is in a lovely corner plot.
0:05:15 > 0:05:18The front garden is large and looks easy to maintain.
0:05:18 > 0:05:20And what's more, there's a bit at the side.
0:05:24 > 0:05:27Well, out the back of the property, as everywhere else,
0:05:27 > 0:05:29good to see double glazing.
0:05:29 > 0:05:34Also, nice somebody has gone to the trouble of painting the rainwater gutter.
0:05:34 > 0:05:39I know it sounds a bit silly, but one of my big bugbears is when people don't do the basics.
0:05:39 > 0:05:43Gutters and downpipes, get those wrong, full of stuff,
0:05:43 > 0:05:46it's going to cause damp, it's going to cause all sorts of problems a stitch in time
0:05:46 > 0:05:49definitely saves nine. So it's nice to see that.
0:05:49 > 0:05:51What is also a bit of pleasure is the back garden.
0:05:51 > 0:05:53Yeah, not about size at all.
0:05:53 > 0:05:57You could do with some slightly nicer garden fencing but, apart
0:05:57 > 0:06:01from that, it's a good-sized space I think you can have some fun with.
0:06:01 > 0:06:04And look, there's even a patio. And heavens to Betsy...
0:06:05 > 0:06:07..a sun lounger.
0:06:07 > 0:06:09Well, would be rude not to really, wouldn't it?
0:06:11 > 0:06:13Nice little sun trap, this.
0:06:13 > 0:06:16Well, it would be if the sun was shining.
0:06:21 > 0:06:24So, as I soak up the great British...
0:06:24 > 0:06:29er...grey skies, now is a good time for a local property expert to come
0:06:29 > 0:06:35and give his opinion on this place guided at £65,000 plus
0:06:35 > 0:06:38and see if he thinks it makes for a sunny proposition.
0:06:38 > 0:06:40This property offers huge potential.
0:06:40 > 0:06:42You can start from scratch in a lot of areas.
0:06:42 > 0:06:46Now, what I would suggest, because the kerb looks as though it has already been lowered,
0:06:46 > 0:06:50I'd gravel that or put some tarmac down and have a proper driveway
0:06:50 > 0:06:52and make this a property with offer of parking.
0:06:52 > 0:06:55Both for letting or for sale, that would certainly increase
0:06:55 > 0:06:58either a sale price or potentially a letting valuation.
0:06:58 > 0:07:02He's right, of course. Off-street parking is always a bonus,
0:07:02 > 0:07:06But do check out with your local council about any environmental
0:07:06 > 0:07:10regulations with regard to materials you could use for the surface.
0:07:10 > 0:07:13What does the agent think this house could sell for?
0:07:13 > 0:07:16Once the works have been completed on the property,
0:07:16 > 0:07:19I would suggest a selling price of around about £100,000.
0:07:20 > 0:07:22And how about rental?
0:07:22 > 0:07:24Potential rental for this property would be quite good.
0:07:24 > 0:07:27I would suggest a rental value between £550
0:07:27 > 0:07:29and £575 per calendar month.
0:07:31 > 0:07:35Well, it's a good, solid house and you can't complain about the views.
0:07:35 > 0:07:38I would, however, make a few internal modifications.
0:07:38 > 0:07:41Still, a good one to go for, let's see who agreed
0:07:41 > 0:07:43when it went under the hammer.
0:07:46 > 0:07:49Lot number four. We stay in the Telford area, this is Overdale.
0:07:49 > 0:07:52What's this, 60,000 to start me here?
0:07:53 > 0:07:5658, then? We'll start it at 58. 58 bid in the aisle, thank you.
0:07:56 > 0:08:0160 bid now. £60,000. 62. 64?
0:08:01 > 0:08:05£66,000. 68. You bid at 68.
0:08:05 > 0:08:0970? 70. 72? No.
0:08:09 > 0:08:11I'll take ones if it helps now.
0:08:11 > 0:08:13Anybody want to go 73? 73.
0:08:13 > 0:08:1774. 75. 76.
0:08:17 > 0:08:21Seen you. 77. 77. 78.
0:08:21 > 0:08:2479. 80. Sure?
0:08:24 > 0:08:2779, then. Standing then at the back, £79,000.
0:08:27 > 0:08:30Are we all done now? At 79, then, once...
0:08:30 > 0:08:3279 twice...
0:08:32 > 0:08:35third and final time at £79,000...
0:08:35 > 0:08:37Your lot, sir, well done.
0:08:37 > 0:08:40It looks like smiles all round there.
0:08:40 > 0:08:45Getting the property for £79,000 are Phil, his wife Tracey
0:08:45 > 0:08:48and their teenage children, Alex and Hayley.
0:08:48 > 0:08:51I wanted to find out more about their first auction purchase.
0:08:53 > 0:08:57- Congratulations.- Thank you. - Thank you, I think.
0:08:57 > 0:09:00Tell me why you wanted to buy the house?
0:09:00 > 0:09:02Well, it's a bit of an investment opportunity.
0:09:02 > 0:09:05It's not our first task that we've done,
0:09:05 > 0:09:09- we're just thinking of the future and hopefully retire early.- Right.
0:09:09 > 0:09:11- On the proceeds.- Good plan.
0:09:11 > 0:09:14Have you bought houses for investment before?
0:09:14 > 0:09:17Yes, we've just completed one house which has just sold
0:09:17 > 0:09:20- and gone through last week.- Great.
0:09:20 > 0:09:23That was originally for rental, but unfortunately I think
0:09:23 > 0:09:26we did too nice a job of it and we were advised to sell it.
0:09:26 > 0:09:28I think we just went a little bit overboard,
0:09:28 > 0:09:32- did it as if it was ours rather than to rent.- Give me some examples.
0:09:32 > 0:09:36- Oak doors instead of just standard doors.- Right.- Oak floorboards...
0:09:36 > 0:09:37instead of carpets.
0:09:37 > 0:09:41And we did a complete renovation of it so it was from roof down.
0:09:41 > 0:09:45- So how much did you buy it for? - 59,000.- How much did you spend on it?
0:09:45 > 0:09:48- 20...- 26.- 26,000.
0:09:48 > 0:09:53- How much did you sell it for? - 135,000.- Result!
0:09:53 > 0:09:56So I can understand why you are very excited about that.
0:09:56 > 0:09:59So you're hoping to replicate that here, although you're not
0:09:59 > 0:10:01planning to necessarily sell this one on?
0:10:01 > 0:10:04I don't think this will be a sale certainly for the next 10 years.
0:10:04 > 0:10:06I think we'll sit on it, we'll rent it out
0:10:06 > 0:10:09and we'll just take a little bit of money in from it.
0:10:09 > 0:10:13Keep it tidy with a long-term view on it.
0:10:13 > 0:10:16Tracey thinks they went overboard with their last property,
0:10:16 > 0:10:18but they did make a 50 grand profit,
0:10:18 > 0:10:22so despite breaking those rules about overspending on personal
0:10:22 > 0:10:24preferences, they literally were quids in.
0:10:24 > 0:10:27However, they seem aware that they were lucky that time around.
0:10:29 > 0:10:31Will they be prudent this time?
0:10:31 > 0:10:34We're going to start with making the garden secure,
0:10:34 > 0:10:37get the fences sorted out, get the outside ready
0:10:37 > 0:10:40and we're considering taking a few walls down internally to
0:10:40 > 0:10:44enhance the size of the kitchen and maybe the bathroom.
0:10:44 > 0:10:46And then it's a case of stripping it out,
0:10:46 > 0:10:49plastering where necessary and decorate throughout.
0:10:49 > 0:10:50Who does the work?
0:10:50 > 0:10:52The heavy work, I do.
0:10:52 > 0:10:55All the background stuff, Trace manages very nicely,
0:10:55 > 0:10:58so she looks after all the finances, she looks after the paperwork,
0:10:58 > 0:11:02all the legal stuff and Tracey with Hayley and Alex,
0:11:02 > 0:11:06who are our children, sort of get involved with the grafting also.
0:11:06 > 0:11:10- How old are they?- Hayley's just turned 17 and Alex is 15.
0:11:10 > 0:11:13And, yeah, they've got involved in the last project.
0:11:13 > 0:11:16- Hayley helped to tile walls.- Great.
0:11:16 > 0:11:20We have to sell it to them on the basis that it's their future,
0:11:20 > 0:11:24- their future investment, so they get involved.- That's brilliant.
0:11:24 > 0:11:26My dad was into DIY and I learnt a lot from him and it really,
0:11:26 > 0:11:29if you're in that environment, it really makes a big difference.
0:11:29 > 0:11:32- That's where you learned, isn't it? - That's where I learned.
0:11:32 > 0:11:34When we first got together and bought our first house,
0:11:34 > 0:11:38- we soon moved on to an old cottage which we renovated.- Yeah.
0:11:38 > 0:11:42- And then from there we bought a piece of land...- And built our own house.
0:11:42 > 0:11:43And built our own house 20 years ago.
0:11:43 > 0:11:46Wow, so what's the budget for the works here?
0:11:46 > 0:11:49Well, ideally we'd like it to come in at around about five.
0:11:49 > 0:11:50Five grand?!
0:11:50 > 0:11:53- We reckon we can do it for five grand.- You'd be surprised,
0:11:53 > 0:11:56- I've got a reputation for finding bargains.- Right...
0:11:56 > 0:11:59A lot of the expensive work like the central heating's already done,
0:11:59 > 0:12:03- and wiring and stuff.- Yeah. - So it is more cosmetic than anything.
0:12:03 > 0:12:07- Apart from the kitchen and the bathroom.- And a few walls we're going to take out, yeah.
0:12:07 > 0:12:10- Apart from that, it's pretty cosmetic(!)- Yeah.
0:12:10 > 0:12:13- And the plastering.- Yeah, the plastering.- And the floor. Yeah.
0:12:19 > 0:12:23'Tracey is a business finance manager, hence the confidence.
0:12:23 > 0:12:25'But talk about from one extreme to the other -
0:12:25 > 0:12:30'£26,000 on the last property, and only £5,000 on this one?
0:12:30 > 0:12:33'Phil's IT job takes him away from home a fair bit,
0:12:33 > 0:12:37'so even with the help of those budding DIY-ers, I'd be very surprised
0:12:37 > 0:12:40'if Tracey isn't revising those figures upwards very soon.'
0:12:40 > 0:12:44- We want the place to be of a nice standard.- Yes.
0:12:44 > 0:12:46We don't want it to be bottom of the range,
0:12:46 > 0:12:50but we accept that there are time scales we have to meet.
0:12:50 > 0:12:54And if the budget goes a little bit beyond five grand, then we've got
0:12:54 > 0:12:59a little bit in hand for that, but we'll make it as nice as we can.
0:12:59 > 0:13:00- Well, good luck. - Thank you very much.
0:13:00 > 0:13:04- We look forward to seeing how you get on.- Thank you.- Thank you.
0:13:04 > 0:13:11So, Phil and Tracey learning from their previous renovation experience, where they overspent.
0:13:11 > 0:13:14However, are they going a little bit too far the other way?
0:13:14 > 0:13:17£5,000 to do this up?
0:13:17 > 0:13:20Well, let's find out later in the show how they get on.
0:13:24 > 0:13:28'From Shropshire's rolling hills to the Kent coast's rolling waves.
0:13:28 > 0:13:31'Folkestone is riding on its own wave at the moment,
0:13:31 > 0:13:33'with a high-speed rail link to London,
0:13:33 > 0:13:37'a revitalised town centre and a good smattering of culture.
0:13:37 > 0:13:40'The tide's definitely turning.'
0:13:44 > 0:13:47Ten minutes from the bars and restaurants,
0:13:47 > 0:13:50and we're on the one of the main Victorian arteries through town.
0:13:50 > 0:13:53It's a gorgeous grand wide street,
0:13:53 > 0:13:56and it really does make a wonderful first impression.
0:13:56 > 0:13:58Well, the property I'm here to see
0:13:58 > 0:14:01is a three-bedroom flat in this building here.
0:14:01 > 0:14:07Now, it had a guide price of £60,000 to £65,000,
0:14:07 > 0:14:09and it's on the top floor!
0:14:11 > 0:14:13Great.
0:14:13 > 0:14:17'A sprightly start up the stairs, at least to begin with.
0:14:17 > 0:14:20'My first thought is how fabulous this building is.
0:14:20 > 0:14:24'I'm hoping the features inside live up to the ones on the outside.'
0:14:24 > 0:14:26Wow. Lovely stairs...
0:14:26 > 0:14:29but rather a lot of them. Wish me luck!
0:14:30 > 0:14:34'Well, the grand communal staircase is certainly elegant.'
0:14:34 > 0:14:37If this flat was on the ground floor,
0:14:37 > 0:14:39it would be worth ten grand more.
0:14:44 > 0:14:49And right now, I'm thinking that would be ten grand well spent.
0:14:49 > 0:14:53'The flat is on two levels, at the very top of this building,
0:14:53 > 0:14:55'so right away I reckon that rules out
0:14:55 > 0:14:59'any buyers with mobility issues, or young kids.
0:14:59 > 0:15:01'Let's hope it's worth the climb.'
0:15:03 > 0:15:07Right. This is not what I was expecting.
0:15:07 > 0:15:10Wow. Freshly plastered walls.
0:15:10 > 0:15:13I can't smell any damp.
0:15:13 > 0:15:18The floors have all been boarded. Really, really good condition.
0:15:18 > 0:15:21I think that's a bedroom there. New windows.
0:15:21 > 0:15:24Another bedroom here - with a bit of a leak up there,
0:15:24 > 0:15:25we'll come back to that.
0:15:25 > 0:15:28Some storage, a nice bathroom,
0:15:28 > 0:15:31new tiles, little staircase,
0:15:31 > 0:15:35a fantastic space - I'm guessing this is a sitting area.
0:15:35 > 0:15:38A kitchen, with a brand-new kitchen in it.
0:15:38 > 0:15:42I mean, this really is an incredible flat.
0:15:42 > 0:15:46It's almost like I've turned up too late and it's been done.
0:15:46 > 0:15:47'Yes - have I missed something?
0:15:47 > 0:15:51'Exactly how long was I climbing those stairs?
0:15:51 > 0:15:53'This flat seems finished!'
0:16:08 > 0:16:10'And the floor space is wonderful.
0:16:10 > 0:16:12'Both bedrooms are good-sized doubles,
0:16:12 > 0:16:14'and unlike some upper floor flats we see,
0:16:14 > 0:16:19'we don't feel too cramped and crowded by the sloping ceilings.
0:16:19 > 0:16:22'And there's more accommodation up the stairs.'
0:16:22 > 0:16:24Upstairs there's a lovely bonus, bedroom number three.
0:16:24 > 0:16:26It's a really nice size,
0:16:26 > 0:16:29you've got fantastic views, with a little balcony.
0:16:29 > 0:16:33But - look at this. Now, it's not instantly obvious,
0:16:33 > 0:16:37but this is the source of the water damage on the ceiling downstairs.
0:16:37 > 0:16:42How? Well, I've been told this door was accidentally left open
0:16:42 > 0:16:46four, five years, and that's how long the flat has been empty.
0:16:46 > 0:16:50Can you imagine that - five years' worth of water seeping through here,
0:16:50 > 0:16:55and what damage that could have done to the floorboards and the joists even.
0:16:55 > 0:16:57That's scary.
0:17:01 > 0:17:04'You really don't want to see this create a problem in a flat
0:17:04 > 0:17:08'that has so clearly had a lot of time and energy spent on it.
0:17:08 > 0:17:11'I really hope there isn't more damage than you can see.
0:17:11 > 0:17:13'I'd definitely get it checked out.
0:17:13 > 0:17:17'That said, it's a lovely building, with that ornate communal staircase,
0:17:17 > 0:17:21'and the flat itself has had all the work done.
0:17:21 > 0:17:25'At a guide price of £60,000 to £65,000,
0:17:25 > 0:17:29'it makes this a very attractive package to my mind.
0:17:29 > 0:17:34'I hope the local estate agent has plenty of energy for the climb.'
0:17:34 > 0:17:37Gracious Victorian building, very close to the centre of town.
0:17:37 > 0:17:40Nice position, close to the seafront.
0:17:40 > 0:17:42There isn't very much that needs to be done to get it
0:17:42 > 0:17:45in a lettable condition all ready to sell on.
0:17:45 > 0:17:48'And how could you add more value?'
0:17:48 > 0:17:50Carpeting needs doing,
0:17:50 > 0:17:53'a few bits of decorative attention, few fittings, that's it.
0:17:53 > 0:17:57'And what about resale? What does the agent think the flat could achieve?'
0:17:57 > 0:18:00I think that the ceiling price for this property once it's in
0:18:00 > 0:18:04finished condition is probably in the range of £110,000.
0:18:04 > 0:18:08'And the rental income it could generate?'
0:18:08 > 0:18:09The rental price would be
0:18:09 > 0:18:12in the region of £650 per calendar month.
0:18:13 > 0:18:17I think this flat is good value, it's in a great location,
0:18:17 > 0:18:19it has a lot of charm -
0:18:19 > 0:18:21for someone who enjoys a daily climb home.
0:18:21 > 0:18:24Let's see who that was at the auction.
0:18:24 > 0:18:27'This lot came up near to the end of the auction.'
0:18:27 > 0:18:31So lot 54. Three bedrooms.
0:18:31 > 0:18:35Got a guide of 60,000 to 65,000 - start me in at 65,000?
0:18:35 > 0:18:37£60,000 to start me?
0:18:37 > 0:18:40£60,000 I have, thank you. And 62?
0:18:40 > 0:18:4362 I have, and 64?
0:18:43 > 0:18:4564 is bid, and 66?
0:18:45 > 0:18:4766, lady's bid.
0:18:47 > 0:18:50At 67, I'm bid.
0:18:50 > 0:18:5268. 68.
0:18:52 > 0:18:54And 69. And 70.
0:18:54 > 0:18:5770, I took the lady's bid, sorry, sir.
0:18:57 > 0:18:5971? 71.
0:18:59 > 0:19:02And 72? 72. And 73...?
0:19:02 > 0:19:04'Plenty of interest on the day.
0:19:04 > 0:19:08'We rejoin the bidding at £82,000.'
0:19:08 > 0:19:1282,000 right at the very back of the room on the far left-hand side.
0:19:12 > 0:19:1683,000 is bid, sitting. 84 for you.
0:19:16 > 0:19:20At 84,000 at the back of the room, at 85 for you now?
0:19:20 > 0:19:25No, a definite no. At 84,000 at the back of the room, then,
0:19:25 > 0:19:28for the first time at 84,000.
0:19:28 > 0:19:32Out on my right, at £84,000 for the second time.
0:19:32 > 0:19:3584,000 for the third and final time.
0:19:35 > 0:19:38Gentleman's bid on my left-hand side, are you all done?
0:19:38 > 0:19:41Sold at 84,000.
0:19:41 > 0:19:44'The successful bidder paying £84,000 was Greg.
0:19:44 > 0:19:46'He lives in Surrey,
0:19:46 > 0:19:49'and until recently worked full-time in IT administration
0:19:49 > 0:19:52'but is now part-time.
0:19:52 > 0:19:54'He now plans to develop property,
0:19:54 > 0:19:58'and this was his first investment purchase.
0:19:58 > 0:20:01'I met him back at the flat to find out more.'
0:20:01 > 0:20:03- Greg, congratulations. - Thank you.- Well done.
0:20:03 > 0:20:07The property is yours, so how did you find it?
0:20:07 > 0:20:10I've been looking in Folkestone for just over a year.
0:20:10 > 0:20:13This property came up along with another property
0:20:13 > 0:20:17in the apartment building itself, which was the one I had my eye on.
0:20:17 > 0:20:20I got told that they were definitely going to auction
0:20:20 > 0:20:25so two months after I got told that, I won this one.
0:20:25 > 0:20:28So did you try to buy this prior to the auction?
0:20:28 > 0:20:30No, I tried to buy the other one.
0:20:30 > 0:20:34- It was a two-bedroom, whereas this is a three.- How much did you offer?
0:20:34 > 0:20:38I went to the estate agent and said I'd offer £90,000 which was
0:20:38 > 0:20:42the full asking price of the two-bedroom at the time,
0:20:42 > 0:20:46if I could go and see the apartment and they said no, so here I am.
0:20:46 > 0:20:48- And you paid?- 84.
0:20:48 > 0:20:52- For a three-bedroom apartment.- Yes. - Give me five!
0:20:59 > 0:21:02'Result - Greg's got an extra bedroom in his flat
0:21:02 > 0:21:07'and he paid £6,000 less than he offered privately for the other one.
0:21:07 > 0:21:10'For Greg's tight finances, well, that's a real bonus.'
0:21:13 > 0:21:15What's your sort of plan, your future for it?
0:21:15 > 0:21:17Well, in my working life,
0:21:17 > 0:21:20I've been made redundant couple of times now
0:21:20 > 0:21:25and I've saved hard with my money and this is basically every penny that
0:21:25 > 0:21:29I have is in this property and the refurbishment of this property.
0:21:29 > 0:21:30It is my pension plan.
0:21:30 > 0:21:33OK, you say the refurbishment of this property,
0:21:33 > 0:21:36let's talk about the refurbishment,
0:21:36 > 0:21:38because you could eat your dinner off of any of these walls.
0:21:38 > 0:21:40It's absolutely fabulous.
0:21:40 > 0:21:43This fantastic, I really lucked out with it.
0:21:43 > 0:21:45The property was partly refurbished anyway
0:21:45 > 0:21:48and for one reason or another, they didn't finish it.
0:21:48 > 0:21:50What are you going to do to refurbish it
0:21:50 > 0:21:53because it feels terribly spacious, lots of little rooms.
0:21:53 > 0:21:55There are things you could do to update it.
0:21:55 > 0:21:58If I was doing this completely from scratch,
0:21:58 > 0:22:00I would do a different kitchen and upgrade the bathroom
0:22:00 > 0:22:04and stuff like that, but because everything is in, working,
0:22:04 > 0:22:06there's no reason to take it out.
0:22:06 > 0:22:09What I'm going to do is coming and spend a few thousand pounds
0:22:09 > 0:22:11and just finish the job, really.
0:22:11 > 0:22:14'Greg was determined to buy a property in this block,
0:22:14 > 0:22:17'but he's not quite so decided about what is going to do with it,
0:22:17 > 0:22:22'whether to sell or rent it. He may even move in himself.
0:22:22 > 0:22:24'He's got contacts who'll help him with the work
0:22:24 > 0:22:28'and Greg is a dab hand at tiling and flooring which means
0:22:28 > 0:22:31'he should be able to keep within his projected budget of £3,000
0:22:31 > 0:22:33'and a three-month timescale.
0:22:37 > 0:22:39'It all sounds straightforward enough
0:22:39 > 0:22:43'but the one worry I had about the fact is that door having
0:22:43 > 0:22:48'been left open for five years and the possibility of unseen damage.'
0:22:48 > 0:22:52When I came to view the property, the damp was a concern for me.
0:22:52 > 0:22:55I've had a look at the ceiling in the small bedroom
0:22:55 > 0:22:57where the water damage was coming through.
0:22:57 > 0:23:01The plasterboard seems in fairly good nick but if there are
0:23:01 > 0:23:06surprises, it's not going to be part of the three grand, but it's doable.
0:23:08 > 0:23:12'At the moment, Greg still has his day job in IT,
0:23:12 > 0:23:16'but he's reduced his time to three days a week, giving him a four-day
0:23:16 > 0:23:20'weekend to spend by the sea in Folkestone and do a property.
0:23:20 > 0:23:24'It's all a means to an end because Greg's real passion is travel.'
0:23:32 > 0:23:36I decided to leave my job that I was in.
0:23:36 > 0:23:38It was quite stressful and I wasn't enjoying it,
0:23:38 > 0:23:43so my friend and I decided to do Route 66,
0:23:43 > 0:23:45so we did that for five weeks.
0:23:45 > 0:23:50I came home and a week later I booked a ticket to go away for a month.
0:23:50 > 0:23:51I just got the bug.
0:23:51 > 0:23:53So hopefully if you can spin this, turn it around,
0:23:53 > 0:23:55make some money on it, off you'll be going
0:23:55 > 0:23:58- on your travels once again. - That's the general idea,
0:23:58 > 0:24:02to get myself to a point where I can do a couple of properties
0:24:02 > 0:24:07and take a small chunk of cash out of the profit and then go and travel.
0:24:15 > 0:24:16Do you think there's any chance
0:24:16 > 0:24:19you might end up relocating to Folkestone yourself?
0:24:19 > 0:24:22Well, the general plan is to spend the next three years in Folkestone
0:24:22 > 0:24:26to buy, do up and sell properties, and build up some capital
0:24:26 > 0:24:28and then hopefully start a renting portfolio.
0:24:28 > 0:24:30You really believe in this area.
0:24:30 > 0:24:33Yes, I'd really like to invest my money where I live
0:24:33 > 0:24:35and where all my friends and family are,
0:24:35 > 0:24:38but the difference is a two-bedroom in Sutton is going to cost
0:24:38 > 0:24:40quite a substantial amount of money,
0:24:40 > 0:24:42over 100,000 more than this flat cost me
0:24:42 > 0:24:46and this is a three bedroom and the beach is a four-minute walk away.
0:24:46 > 0:24:49I know you've been spending a bit of time on the beach this summer.
0:24:49 > 0:24:53Yes, that's right, every spare moment I've had, I've come down to the flat,
0:24:53 > 0:24:56not to do any work, but to spend my day on the beach.
0:24:56 > 0:24:58Greg, it's great meeting you today
0:24:58 > 0:25:00and I'm not expecting a drastic change.
0:25:00 > 0:25:02Hopefully some profit, though, and some new flooring.
0:25:02 > 0:25:05Yes, and some new flooring. Thank you very much.
0:25:05 > 0:25:06- Lovely to meet you.- Thank you.
0:25:06 > 0:25:11Greg has a few grand to polish up this already shiny flat.
0:25:11 > 0:25:15I'll be interested to see what he does and see if he rents,
0:25:15 > 0:25:17sells or moves in.
0:25:17 > 0:25:20You can find out what he's up to later on in the programme.
0:25:21 > 0:25:25'Still to come, this three-bedroom bungalow in Cornwall is
0:25:25 > 0:25:29'showing some cracks, so why is that good news?'
0:25:29 > 0:25:30Wow!
0:25:32 > 0:25:36'And will Greg get to the bottom of those damp patches and still
0:25:36 > 0:25:37'have enough in the budget
0:25:37 > 0:25:40'to put the finishing touches to his new flat?
0:25:44 > 0:25:47'But first, we're returning to those magnificent views
0:25:47 > 0:25:49'of the Shropshire countryside...
0:25:52 > 0:25:56'..that made this semi-detached house such a must-buy at auction.
0:25:59 > 0:26:02'Although the views on the outside were inviting,
0:26:02 > 0:26:05'the same couldn't be said for the views inside.'
0:26:05 > 0:26:10Facing you is this room and what is this all about?
0:26:10 > 0:26:13At some stage, that was like a porch or something.
0:26:13 > 0:26:15'Plenty of room for a good reconfiguration here,
0:26:15 > 0:26:21'and buyers, Phil and Tracey, who paid 79,000 at auction have
0:26:21 > 0:26:24'roped the rest of the family into the project.'
0:26:24 > 0:26:26Hayley and Alex, who are our children,
0:26:26 > 0:26:28are getting involved with it.
0:26:28 > 0:26:31We have to sell it to them on the basis that it's their future,
0:26:31 > 0:26:35their future investment, so they get involved.
0:26:35 > 0:26:37'With a ready-made workforce at hand,
0:26:37 > 0:26:40'Phil and Tracey were good to go and determined not to repeat their
0:26:40 > 0:26:44'last development experience where they spent more than they intended.'
0:26:44 > 0:26:47I think that we just went a little bit overboard.
0:26:47 > 0:26:51- So, how much did you buy it for? - 59,000.- How much did you spend on it?
0:26:51 > 0:26:58- 26,000.- 26,000.- How much did you sell it for?- 135,000.- Result!
0:26:59 > 0:27:02'The couple intended knocking down some walls
0:27:02 > 0:27:04'and renovating the kitchen and bathroom.
0:27:06 > 0:27:08'Despite Tracey's nose for a bargain,
0:27:08 > 0:27:11'I wondered if they were going too far with a rather tight
0:27:11 > 0:27:17'budget of £5,000, but given the house had already been
0:27:17 > 0:27:20'renovated in terms of electrics, double glazing,
0:27:20 > 0:27:25'and central heating, it looked like mostly cosmetic work was needed.
0:27:26 > 0:27:29'Five months later and on the outside,
0:27:29 > 0:27:36'not a lot has changed, but, inside, it's a different story.'
0:27:42 > 0:27:46Probably the biggest change we've made is that we've taken
0:27:46 > 0:27:49the wall out between the kitchen and a strange little room that
0:27:49 > 0:27:52was behind it, so it made it a larger kitchen.
0:27:52 > 0:27:56I think the space is much better utilised, we've got
0:27:56 > 0:28:01a nice family kitchen now, whereas we had two very small rooms before,
0:28:01 > 0:28:03so that's been a real improvement to the property.
0:28:06 > 0:28:09The kitchen took a little bit longer than anticipated.
0:28:09 > 0:28:13That was mainly because we used a second-hand kitchen which
0:28:13 > 0:28:16needed a little bit of adjustment.
0:28:16 > 0:28:19The problem with using second-hand furniture like that is that
0:28:19 > 0:28:22you have to make do with what you've got,
0:28:22 > 0:28:26whereas with a new one, you just simply slot it in and away you go.
0:28:26 > 0:28:30'Tracey clearly found a bargain with that kitchen. Even if it did cause
0:28:30 > 0:28:35'a few headaches, it looks good and the living area is welcoming
0:28:35 > 0:28:38'and there's a nice blend of subtle colours which feel warm and homely.
0:28:41 > 0:28:45'Upstairs, the separate toilet and bathroom have also been updated.'
0:28:45 > 0:28:48We've made the airing cupboard in the bathroom smaller
0:28:48 > 0:28:50so that you've got more room in the bathroom.
0:28:50 > 0:28:53Other than that, it's structurally exactly the same as it was.
0:28:53 > 0:28:58Really, we didn't have to worry too much about the aspect of the
0:28:58 > 0:29:02build, it was more the ascetics and making the rooms more usable.
0:29:02 > 0:29:05'Other than the professionals checking the electrics,
0:29:05 > 0:29:09'no task has been too great and no family member excused.'
0:29:09 > 0:29:12We've got the kids decorating on the house
0:29:12 > 0:29:16and we've even got his elderly mother in to help with cleaning.
0:29:16 > 0:29:18It's been a family affair, this one.
0:29:24 > 0:29:27'What about that £5,000 they set aside for renovations,
0:29:27 > 0:29:29'did they manage to stick to the budget?'
0:29:29 > 0:29:33By the time we finished everything, it should come in at about £7,500
0:29:33 > 0:29:37and the overspend on that is mainly because of the plastering.
0:29:37 > 0:29:40When we got in here and started to take wallpaper off,
0:29:40 > 0:29:43we found that the existing plaster had all cracked,
0:29:43 > 0:29:47so in some places we had to make good and then we thought by having
0:29:47 > 0:29:50the whole house skimmed out, it would allow us
0:29:50 > 0:29:54to have a nice blank canvas, a good finish, ready to take the paint.
0:29:56 > 0:30:01With an initial purchase price of 79,000, plus renovation costs
0:30:01 > 0:30:02of 7,500,
0:30:02 > 0:30:04it's time to find out
0:30:04 > 0:30:09if two local estate agents think this has been a sound investment?
0:30:09 > 0:30:12It's a really spacious property.
0:30:12 > 0:30:15Nice and clean and fresh all the way through. Nice, contemporary colours.
0:30:15 > 0:30:18Very good for this sort of young market, really.
0:30:20 > 0:30:23The feature wallpaper is very good in places and they've
0:30:23 > 0:30:25kind of gone above and beyond, maybe, in some areas as well.
0:30:25 > 0:30:28I think there's a couple of areas they could have done slightly better,
0:30:28 > 0:30:31such as flooring in the toilet, perhaps.
0:30:31 > 0:30:34But overall, it's fine, for what the market's expecting.
0:30:34 > 0:30:36The view to the front is absolutely perfect.
0:30:36 > 0:30:38It's got a good-sized front garden as well,
0:30:38 > 0:30:40so they're big bonuses to be found.
0:30:40 > 0:30:43The downstairs accommodation works well as well.
0:30:43 > 0:30:44All in all, Phil and Tracey
0:30:44 > 0:30:48and spent a total of 86,500 on this property.
0:30:48 > 0:30:49They definitely want to keep it,
0:30:49 > 0:30:53but if they did sell on, how much could it fetch?
0:30:53 > 0:30:54I think, in the current market,
0:30:54 > 0:30:57they'd be looking to achieve around about £105,000.
0:30:57 > 0:31:00With the market price, for sale purposes,
0:31:00 > 0:31:01I would say at £110,000.
0:31:01 > 0:31:07Minus taxes and expenses, that is a potential profit of up to 23,500.
0:31:08 > 0:31:11That sort of return on the investment is what we expected, certainly.
0:31:11 > 0:31:14We knew we weren't going to make a huge amount
0:31:14 > 0:31:17of money on this, but it wasn't about a resale figure at this stage.
0:31:17 > 0:31:21This property is, of course, a long-term family investment,
0:31:21 > 0:31:23so what really matters to them is the rental.
0:31:23 > 0:31:25I would suggest that should be looking
0:31:25 > 0:31:28somewhere in the region of £595 per calendar month.
0:31:28 > 0:31:32Top dollar price would be £625 per calendar month.
0:31:32 > 0:31:37We expected around about £575 per month.
0:31:37 > 0:31:40So anything on top of that is a bonus.
0:31:40 > 0:31:44Phil, Tracey, Hayley and Alex aren't resting on their laurels, though.
0:31:44 > 0:31:47They've already purchased their next property for development
0:31:47 > 0:31:51and they've set their sights on the long-term future.
0:31:51 > 0:31:55We always like to go to the auctions and see what's out there.
0:31:55 > 0:31:57So, I'm sure we will then
0:31:57 > 0:32:00buy further properties and our aim is over the next couple of years
0:32:00 > 0:32:04to build up a portfolio with a long-term view of having
0:32:04 > 0:32:07a retirement fund, of course, from it.
0:32:16 > 0:32:20We now head off to the beautiful county of Cornwall
0:32:20 > 0:32:23and the market town of St Austell on the South Coast.
0:32:23 > 0:32:27The town grew out of the mining of tin and copper
0:32:27 > 0:32:29and more recently, china clay.
0:32:29 > 0:32:31Today, it now relies on tourism
0:32:31 > 0:32:35and with surrounding scenery like this, its popularity is no surprise.
0:32:40 > 0:32:43Well, even on a grey, wet day like today, it is
0:32:43 > 0:32:45lovely to be down in the West Country.
0:32:45 > 0:32:48The smell of the sea air, there's just something about it.
0:32:48 > 0:32:51So the property I'm here to see, I'm excited about it.
0:32:51 > 0:32:55It's a two-bedroom bungalow at a guide price of £90,000 plus.
0:32:55 > 0:32:58It's on this corner plot. Nice looking garden.
0:32:58 > 0:33:00Let's take a look inside.
0:33:02 > 0:33:04The bungalow itself looks attractive enough,
0:33:04 > 0:33:10but then, as we all know, looks can be deceptive. So, what is on offer?
0:33:10 > 0:33:13Well, through the front door to a little sort of central area here.
0:33:13 > 0:33:17It's not huge. But then, the bungalow isn't, really.
0:33:17 > 0:33:21This is a nice size. This is your living room.
0:33:21 > 0:33:22It's dual aspect.
0:33:22 > 0:33:27And with these sort of basically floor-to-ceiling windows,
0:33:27 > 0:33:29lots of light in here.
0:33:29 > 0:33:34So, this is a very dated little serving hatch through
0:33:34 > 0:33:35to the kitchen.
0:33:37 > 0:33:40I don't like that, though. What an odd place for a crack.
0:33:40 > 0:33:44On an internal wall like that. Hmm.
0:33:44 > 0:33:47It looks as though other potential buyers have been taking
0:33:47 > 0:33:51a close look and that is definitely the thing to do.
0:33:51 > 0:33:54Any cracking that isn't just plaster drying out needs a big
0:33:54 > 0:33:57investigation. Structural suspicions aside,
0:33:57 > 0:33:59I reckon this bungalow would
0:33:59 > 0:34:02benefit from a total strip out and start again.
0:34:02 > 0:34:05And it would appear no effort is going to be needed stripping
0:34:05 > 0:34:09those bedroom walls. So, the two bedrooms, not a bad size.
0:34:09 > 0:34:14And the bathroom, which although a bit dated, I've seen worse.
0:34:14 > 0:34:17It all gets a bit not too brilliant again
0:34:17 > 0:34:20when you come into the kitchen.
0:34:20 > 0:34:24It's dominated by this huge, great, I guess it's the chimney breast.
0:34:24 > 0:34:27In there at the moment, your hot water cylinder.
0:34:27 > 0:34:32So, maybe if you put, I don't know, a combination boiler in, you could
0:34:32 > 0:34:37try and open up a bit of that space, because it really, it does need it.
0:34:37 > 0:34:40And with the serving hatch, you could do something in here,
0:34:40 > 0:34:42for sure. As you travel through here,
0:34:42 > 0:34:44you do come out into a really nice-sized space, and you can
0:34:44 > 0:34:49understand why somebody has added on this little aluminium...
0:34:49 > 0:34:52What would you call it?! ..greenhouse, I guess!
0:34:52 > 0:34:54It'd be nice if this was a bit more permanent,
0:34:54 > 0:34:57because I imagine in the winter, this would be very cold.
0:34:57 > 0:34:59But the concept of having something here,
0:34:59 > 0:35:01is, I think, absolutely right.
0:35:01 > 0:35:06Because you need that extra space. At the moment, it's a bit snug.
0:35:06 > 0:35:09So, this little lean-to - good idea in theory, -
0:35:09 > 0:35:12at the moment not very successful in practice.
0:35:12 > 0:35:14Best start again, I think.
0:35:24 > 0:35:27The kitchen is definitely not suitable for modern living,
0:35:27 > 0:35:30but it wouldn't take a leap of imagination to tap into the space,
0:35:30 > 0:35:34transform the layout and create a really nice working area.
0:35:34 > 0:35:39You know me. I'm always looking for ways to add value to a property.
0:35:39 > 0:35:44And one of those is to think about some kind of an extension, so one
0:35:44 > 0:35:47of the good things about the position of this bungalow is it is
0:35:47 > 0:35:51on the end, so there is the option perhaps of extending out this way.
0:35:51 > 0:35:53Obviously with bungalows,
0:35:53 > 0:35:55the other thing which you could contemplate is a dormer.
0:35:55 > 0:35:57Would the planners allow it?
0:35:57 > 0:36:00A good way to get a feeling for that is to look around
0:36:00 > 0:36:01the immediate environment
0:36:01 > 0:36:04and see what others have done. There's a few bungalows
0:36:04 > 0:36:07over there that look like they've got some kind of an extension.
0:36:07 > 0:36:08I see three dormers there.
0:36:08 > 0:36:11So it looks like the options might be open,
0:36:11 > 0:36:13which has got to be good news.
0:36:13 > 0:36:17Increasing the square footage of this property could transform this
0:36:17 > 0:36:20small bungalow into a good-sized family home.
0:36:22 > 0:36:26But would that be right for this area and the market around here?
0:36:26 > 0:36:28Let's find out from a local estate agent.
0:36:30 > 0:36:32The older generations,
0:36:32 > 0:36:34sort of early retirement age upwards,
0:36:34 > 0:36:36really like this area.
0:36:36 > 0:36:39There's not many that come on the market and when they do, they go
0:36:39 > 0:36:42very quickly, so it's a really good area and a really good house.
0:36:45 > 0:36:48With that positive news, what sort of returns could the bungalow
0:36:48 > 0:36:52make once it has been renovated? First, resale.
0:36:52 > 0:36:55This property, in its finished state, would be
0:36:55 > 0:36:59worth between £160,000 and £170,000.
0:36:59 > 0:37:03If it goes for anything near its £90,000 guide price,
0:37:03 > 0:37:06and add a possible refurbishment bill of 15,000,
0:37:06 > 0:37:10then the bungalow could represent a pretty decent investment.
0:37:10 > 0:37:13But what if you could extend up into the loft?
0:37:13 > 0:37:17I think if you added another bedroom to this property, it would
0:37:17 > 0:37:20definitely add value to this house, maybe another 10,000 to it.
0:37:20 > 0:37:23But even in its current state, it is
0:37:23 > 0:37:26still a very saleable house in a very sought-after area.
0:37:26 > 0:37:30Hm, sounds like going to the expense of extending upstairs might not
0:37:30 > 0:37:32be worthwhile if you were an investor.
0:37:32 > 0:37:35So, is there a rental market here?
0:37:35 > 0:37:38The rental market in this area is extremely good as well.
0:37:38 > 0:37:40This property, in its finished state,
0:37:40 > 0:37:46would claim an income of between £675 to £750 per calendar month.
0:37:49 > 0:37:54So, was this bungalow by the sea in Cornwall a good catch?
0:37:54 > 0:37:56Well, I would certainly want to do a bit more fishing,
0:37:56 > 0:37:59specifically about this crack, before I committed.
0:37:59 > 0:38:03Let's see who wasn't put off when it went under the hammer.
0:38:05 > 0:38:11Lot 129. I would like to start at £90,000 if I can. 90, sir, seated.
0:38:11 > 0:38:16Straight off at £90,000. Looking good at 90 here. 91. 92.
0:38:16 > 0:38:1993 for the phone if we can. 93.
0:38:19 > 0:38:2394. 94,000.
0:38:23 > 0:38:2696,000. 97 on the phone now.
0:38:26 > 0:38:2897. 98 now, seated.
0:38:28 > 0:38:31You're in the room, he's on the phone, I'll take half. 97.5.
0:38:31 > 0:38:3498 on the phone now. I will take your 98 now.
0:38:34 > 0:38:37Straight at the back of the room. Thank you, sir. 99.
0:38:37 > 0:38:3998.5.
0:38:39 > 0:38:4399. 99 now. 100. 100 here. 102.
0:38:45 > 0:38:47101. £101,000.
0:38:47 > 0:38:51That is the first time it is standing against the phone.
0:38:51 > 0:38:53Half? 101.5, 102.
0:38:53 > 0:38:57Must be, 500 quid. 102. 103, please.
0:38:58 > 0:39:02It is 102 at the back of the room, I will call this for the first
0:39:02 > 0:39:07time at 102 for the second, third, last time of calling.
0:39:08 > 0:39:11102, sir, thank you very much. Your bidding number.
0:39:11 > 0:39:16And those successful bidders getting the lot for 102,000 were Howard
0:39:16 > 0:39:17and Jason.
0:39:17 > 0:39:19Howard, on the right,
0:39:19 > 0:39:22runs a property maintenance business based in St Austell
0:39:22 > 0:39:27and I was keen to find out why he has spent £102,000 on this bungalow.
0:39:29 > 0:39:33We're always on the lookout for refurbishment properties, it's
0:39:33 > 0:39:38a good standard bungalow. Easy refurbishment. Very good location.
0:39:38 > 0:39:41- Just really works for us. - Is it something you do a lot of?
0:39:41 > 0:39:43It is something we do a lot of.
0:39:43 > 0:39:46We're a local building maintenance company here in St Austell
0:39:46 > 0:39:51- and we employ over 100 building maintenance operatives.- Wow.
0:39:51 > 0:39:56So, one of our building initiatives is doing refurbishments.
0:39:56 > 0:40:00So we've done quite a few of these now and this one is ideal.
0:40:00 > 0:40:02So who do you generally manage properties for?
0:40:02 > 0:40:05Is it private people or companies?
0:40:05 > 0:40:09We've got a sister company who is a social landlord, so we maintain
0:40:09 > 0:40:12all of their properties, they've got over 4,000 properties in Cornwall.
0:40:12 > 0:40:15- 4,000?- 4,000.
0:40:15 > 0:40:17- So it keeps us busy.- No kidding!
0:40:17 > 0:40:20So, does this house go into your personal portfolio?
0:40:20 > 0:40:22Or is it into a company portfolio?
0:40:22 > 0:40:25It goes into a company portfolio and we use it to sell on,
0:40:25 > 0:40:28- obviously, hopefully at a profit. - Right.
0:40:28 > 0:40:31And then we move that profit back to our sister company
0:40:31 > 0:40:33so they can build more local, affordable housing.
0:40:33 > 0:40:36Oh, great.
0:40:36 > 0:40:38This sounds like a win-win situation.
0:40:38 > 0:40:41Not only will this house get a new lease of life,
0:40:41 > 0:40:44and provide a home, the profit from it will go towards funding
0:40:44 > 0:40:49affordable housing, creating jobs and profits for the company.
0:40:49 > 0:40:51Howard looks after finding the properties,
0:40:51 > 0:40:55researching the market and dealing with all of the financial side,
0:40:55 > 0:40:58while Jason's job is to project manage the renovation
0:40:58 > 0:41:01and they are aiming for a fast turnaround.
0:41:01 > 0:41:05- We're hoping to get in and out within four weeks.- Four weeks? Wow.
0:41:05 > 0:41:07Tell me what you are planning to do within that time, then?
0:41:07 > 0:41:09The layout is quite dated.
0:41:09 > 0:41:11So we're looking to open plan the kitchen/lounge.
0:41:11 > 0:41:13The wall behind you is obviously carrying
0:41:13 > 0:41:17the chimney breast at the moment. We'll look to demolish the chimney,
0:41:17 > 0:41:20take the wall down behind and make it open-plan lounge,
0:41:20 > 0:41:23full rewire, central heating system with combination boiler.
0:41:23 > 0:41:27Outside, replaster the walls, fascia boards, windows, doors,
0:41:27 > 0:41:29and literally go right the way through the property.
0:41:29 > 0:41:32We've got a grounds maintenance team on board,
0:41:32 > 0:41:33they'll do the grounds.
0:41:33 > 0:41:37- And still do all that in four weeks? - Yes, should be.- How many people?
0:41:37 > 0:41:40Probably have four predominantly, working on it full-time.
0:41:40 > 0:41:43- And you're going to be cracking the whip?- Absolutely.
0:41:46 > 0:41:49And while we're on the subject of cracking the whips,
0:41:49 > 0:41:52what about those internal cracks?
0:41:52 > 0:41:55That's basically caused due to settlement in the sub floor.
0:41:55 > 0:41:59We actually got hold of the legal pack
0:41:59 > 0:42:03and we found that there was a guarantee for the works where
0:42:03 > 0:42:06the previous vendor had actually employed a contractor to underpin
0:42:06 > 0:42:12or to carry out remedial works to that. I contacted the contract.
0:42:12 > 0:42:14And just double-checked the file
0:42:14 > 0:42:17and all of the works were carried out and they said it was
0:42:17 > 0:42:20a very easy, straightforward job, it is just basic settlement.
0:42:20 > 0:42:22How odd that when they did the remedial works,
0:42:22 > 0:42:26- they didn't sort of fix the things you could see.- Absolutely.
0:42:26 > 0:42:30- A bit of plaster, perhaps? - Absolutely. It's a strange one.
0:42:30 > 0:42:33But possibly to our advantage, because when people were
0:42:33 > 0:42:36having a look round, it probably looked worse than it actually is.
0:42:36 > 0:42:38- There you go. Read the legal pack. - Absolutely.
0:42:38 > 0:42:42Yes, indeed. Homework saves heartache.
0:42:42 > 0:42:44And also it can save you a pretty penny.
0:42:44 > 0:42:45Talking of money,
0:42:45 > 0:42:48they aim to spend £18,000 on a straight renovation.
0:42:51 > 0:42:56Basically, just doing the sums, it works for us straightforward,
0:42:56 > 0:42:59in and out, and it gives people potential afterwards if
0:42:59 > 0:43:02they want a conservatory on the back or to extend it out to the side.
0:43:02 > 0:43:05So, you're leaving in a bit of potential uplift for somebody.
0:43:05 > 0:43:06Yeah.
0:43:06 > 0:43:08Weighing up the cost of investment
0:43:08 > 0:43:11and its possible returns means not wasting time
0:43:11 > 0:43:14and money on renovations that won't increase the profit margin.
0:43:14 > 0:43:17As you would expect from a professional outfit,
0:43:17 > 0:43:20Howard has done his research on the market in this area.
0:43:22 > 0:43:24So, you had a twinkle in your eye when you saw this one?
0:43:24 > 0:43:29- Yes, it was right price, right guide-price...- Good area.
0:43:29 > 0:43:32Good area and, yeah, very strong property.
0:43:32 > 0:43:34Great stuff! Well, listen, congratulations to both of you.
0:43:34 > 0:43:36Thank you.
0:43:36 > 0:43:38And I'll look forward to seeing how you get on.
0:43:38 > 0:43:40- Cheers, lovely.- Thanks, Martin.
0:43:40 > 0:43:41So, there you go,
0:43:41 > 0:43:44just one of the advantages of reading the legal pack,
0:43:44 > 0:43:47Jason and Howard discovering that there was a guarantee on the work
0:43:47 > 0:43:50done and that those cracks, after all, were nothing to worry about.
0:43:50 > 0:43:53But they would have put other people,
0:43:53 > 0:43:56who hadn't read the legal pack, off.
0:43:56 > 0:43:58So, how will they get on sorting it out in four weeks?
0:43:58 > 0:44:01You can find out later in the show.
0:44:04 > 0:44:06It's been a while now since we last visited those properties.
0:44:06 > 0:44:09There should have been some work done
0:44:09 > 0:44:11but you never know quite what's been happening.
0:44:11 > 0:44:13Yes, all sorts of problems can arise.
0:44:13 > 0:44:15So, let's find out what's gone on.
0:44:17 > 0:44:19We now head back to Folkestone, Kent, where
0:44:19 > 0:44:24earlier in the programme we met Greg, who comes from South London.
0:44:24 > 0:44:28He paid 84,000 for a three-bedroom flat all the way up these
0:44:28 > 0:44:30stairs, on the top two floors of this block.
0:44:33 > 0:44:36He works part-time in IT and was hoping to build a property
0:44:36 > 0:44:41portfolio for his pension and to provide income so he could travel.
0:44:41 > 0:44:43I reckoned he'd got a winner with this flat!
0:44:43 > 0:44:46Hardly your standard "before" refurbishment job.
0:44:46 > 0:44:50In fact, it looked a lot better than the "afters" I've seen.
0:44:50 > 0:44:53What are you going to do to refurbish it?
0:44:53 > 0:44:55If I was doing this completely from scratch,
0:44:55 > 0:44:57I would probably do a different kitchen
0:44:57 > 0:45:00and upgrade the bathroom and stuff like that but
0:45:00 > 0:45:04because everything is in, working, there's no reason to take it out.
0:45:04 > 0:45:07So, what I'm going to do is just come in and spend a few
0:45:07 > 0:45:10thousand pounds and just finish the job, really.
0:45:10 > 0:45:13Only one thing concerned me about this fabulous flat,
0:45:13 > 0:45:17the upstairs bedroom, it had a lovely balcony
0:45:17 > 0:45:22but the door had been left open, wait for it, for five years!
0:45:22 > 0:45:25So, bits of this flat had been at the mercy of the elements
0:45:25 > 0:45:26all that time.
0:45:26 > 0:45:29Greg hopes that with a budget of around 3,000,
0:45:29 > 0:45:33he can get this flat sorted in just three months.
0:45:36 > 0:45:39In fact, it was only two months later when we returned to see
0:45:39 > 0:45:42the finishing touches that Greg had added.
0:46:07 > 0:46:11On the top floor, as you can see, we've got carpet throughout.
0:46:11 > 0:46:14Erm, this is the same carpet throughout the entire of the flat.
0:46:14 > 0:46:17Erm, repainted all the walls, so it's all nice, clean and bright white.
0:46:17 > 0:46:20Down here, we just repaired where the damp had come in
0:46:20 > 0:46:24and there was a little bit of moisture and then over here, the
0:46:24 > 0:46:28door we just shut properly, cleaned up the windowsill, damp's gone away.
0:46:28 > 0:46:31My checklist, before I left the flat, is keys,
0:46:31 > 0:46:35electrics off and make sure the door's shut!
0:46:43 > 0:46:45Sounds like the repair to the attic roof
0:46:45 > 0:46:48wasn't as bad as I'd feared.
0:46:48 > 0:46:51But what about the water damage to the room below?
0:46:51 > 0:46:54Shutting the door correctly has completely eradicated the damp issue.
0:46:54 > 0:46:57In the downstairs bedroom, where the ceiling was damaged, we stripped that
0:46:57 > 0:47:01back and basically all the plaster boards were in good condition.
0:47:01 > 0:47:05The joists and everything like that and the boards upstairs seemed fine,
0:47:05 > 0:47:10just did repair work and plastered over the ceiling and job's good now.
0:47:10 > 0:47:12Greg's been thorough.
0:47:12 > 0:47:15I'd always recommend checking out any suspicious damp you
0:47:15 > 0:47:16see in a property.
0:47:16 > 0:47:19It might not always be as easily resolved as this!
0:47:24 > 0:47:27Probably the biggest change here has been the tiling to the bathroom
0:47:27 > 0:47:28and the kitchen.
0:47:28 > 0:47:32It's one of the things that I wanted to do myself to keep costs down.
0:47:32 > 0:47:35So, to bring up the spec of the property, I tiled both the bathroom
0:47:35 > 0:47:39and the kitchen and that saved me quite a substantial amount of money.
0:47:39 > 0:47:43I haven't had many tradesmen in but the ones that I have had in is
0:47:43 > 0:47:48specialist jobs, like an electrician and a plasterer.
0:47:48 > 0:47:50And what about the budget, has Greg stuck to that?
0:47:50 > 0:47:54As a whole, I've spent about £6,000 and my budget was three to four.
0:47:54 > 0:47:58That's including tools and some of the utility bills and things,
0:47:58 > 0:48:00you know, and the general day-to-day stuff.
0:48:00 > 0:48:03But the actual renovation, probably,
0:48:03 > 0:48:06has just cost me four, four and half thousand.
0:48:07 > 0:48:11With that £1,500 on various tools and utility costs,
0:48:11 > 0:48:15Greg reckons he's spent around six grand on this renovation.
0:48:15 > 0:48:18The money on tools is money well-spent.
0:48:18 > 0:48:20After all, he will be able to use them again
0:48:20 > 0:48:23and that will save him money on his next project.
0:48:24 > 0:48:27With the £84,000 he spent at auction,
0:48:27 > 0:48:30it takes his total investment to £90,000.
0:48:30 > 0:48:34Greg decided to furnish the flat with some things from his own
0:48:34 > 0:48:36property, which I think was a good move,
0:48:36 > 0:48:40it helps potential buyers imagine living there so much more easily.
0:48:40 > 0:48:45However, those stairs are definitely something to keep in mind,
0:48:45 > 0:48:48especially when moving things like fridge-freezers
0:48:48 > 0:48:50all the way to the top!
0:48:52 > 0:48:55Here's hoping these two estate agents don't mind climbing up
0:48:55 > 0:48:58to give us their thoughts on this flat.
0:48:58 > 0:49:00First, the agent who saw it previously.
0:49:01 > 0:49:05The flat was in good condition but it has been improved.
0:49:05 > 0:49:07A lot of decoration has been enhanced.
0:49:07 > 0:49:09New tiling in various places.
0:49:09 > 0:49:10It's looking really good.
0:49:10 > 0:49:14My first impressions of the property are that it looks very modern,
0:49:14 > 0:49:15stylish, it's been done to a high standard.
0:49:15 > 0:49:17The bathroom fittings are very nice.
0:49:17 > 0:49:19How much do the agents think the flat could
0:49:19 > 0:49:21achieve on the re-sale market?
0:49:21 > 0:49:25More than the £90,000 Greg has invested?
0:49:25 > 0:49:29I think that it could be sold for around a £100,000-110,000.
0:49:29 > 0:49:34I would think that it would be worth in the region of £115,000.
0:49:34 > 0:49:40Those valuations would give Greg a profit of between £10,000-£25,000,
0:49:40 > 0:49:43that's before taxes and expenses.
0:49:43 > 0:49:45Is that in line with his expectations?
0:49:45 > 0:49:47Well, I think they're a little low.
0:49:47 > 0:49:51My buffer is 120, depending on whether I almost definitely
0:49:51 > 0:49:53rent or almost definitely sell the property.
0:49:53 > 0:49:56I've got the property going on the market this afternoon
0:49:56 > 0:49:59and it will be going on for 135.
0:49:59 > 0:50:03Greg has based that figure on independent valuations he received
0:50:03 > 0:50:07after the carpet had been laid but before the flat had been furnished.
0:50:07 > 0:50:10What do these agents think the flat could achieve on the rental market?
0:50:12 > 0:50:16This flat could rent for around £625-£675 per calendar month.
0:50:16 > 0:50:21£650 unfurnished, probably £675 per calendar month furnished.
0:50:21 > 0:50:24And that would produce a yield of 8-9% -
0:50:24 > 0:50:28enough for Greg to get the travel brochures out.
0:50:28 > 0:50:32£675 is a good income.
0:50:32 > 0:50:34It means I can release what I've invested.
0:50:34 > 0:50:38If need be, then I can travel on that sum of money as well.
0:50:48 > 0:50:51For Greg, it's a good start to the beginning of
0:50:51 > 0:50:53his property investment journey.
0:50:53 > 0:50:56At the end of the day, this is going to be my pension pot
0:50:56 > 0:50:58come later in life,
0:50:58 > 0:51:01so I've got to be smart with it and I've got to keep going.
0:51:06 > 0:51:09Earlier in the programme we paid a visit to this two-bedroomed bungalow
0:51:09 > 0:51:13in St Austell, which was bought at auction for £102,000
0:51:13 > 0:51:17by Howard, who runs a property maintenance company.
0:51:19 > 0:51:21He and project manager Jason renovate properties
0:51:21 > 0:51:24and the profits go into a sister company
0:51:24 > 0:51:25which provides social housing.
0:51:28 > 0:51:30We maintain all of their properties -
0:51:30 > 0:51:33they've got over 4,000 properties in Cornwall. 4,000.
0:51:33 > 0:51:37- So it keeps us busy!- No kidding!
0:51:39 > 0:51:41No strangers to the property business, then,
0:51:41 > 0:51:43and they've done their homework
0:51:43 > 0:51:46when it came to the crack in one of the dividing walls.
0:51:46 > 0:51:49We got hold of the legal pack
0:51:49 > 0:51:53and we found that the previous vendor had actually employed a contractor
0:51:53 > 0:51:56to underpin, or to carry out remedial works to that.
0:51:56 > 0:52:00I contacted the contractor and just double-checked to verify
0:52:00 > 0:52:02that all the works were carried out,
0:52:02 > 0:52:04and they said it was a straightforward job.
0:52:04 > 0:52:07Now that's a testament to doing your homework
0:52:07 > 0:52:09and reading the legal pack.
0:52:09 > 0:52:11But you know me! I won't go on about it.
0:52:11 > 0:52:15This professional pair set themselves a tight schedule
0:52:15 > 0:52:18of just four weeks to complete the refurbishment
0:52:18 > 0:52:20and there's a budget of 18,000.
0:52:20 > 0:52:23We're looking to open-plan the kitchen-lounge.
0:52:23 > 0:52:26The wall behind you has the chimney breast at the moment
0:52:26 > 0:52:29so we'll demolish the chimney, take the wall down behind,
0:52:29 > 0:52:30and make it open-plan.
0:52:30 > 0:52:34Let's find out if they've stuck to that deadline.
0:52:36 > 0:52:39First impressions? Well, I'm sorry the colourful flowers
0:52:39 > 0:52:42and shrubs have gone, but it's low-maintenance
0:52:42 > 0:52:46and it does show off the house in all its glory.
0:52:50 > 0:52:52We ended up doing a bit more to the actual garden
0:52:52 > 0:52:54than we thought we would.
0:52:54 > 0:52:57But we felt that it really needed that
0:52:57 > 0:53:00to finish off the property to the right standard.
0:53:00 > 0:53:04While we're outside, that aluminium lean-to has gone,
0:53:04 > 0:53:06and I'm sorry to see no replacement for it.
0:53:06 > 0:53:09But I guess there's still scope, should the next buyer
0:53:09 > 0:53:11fancy an extension of some sort.
0:53:13 > 0:53:16But it's inside I really want to see.
0:53:16 > 0:53:20What does this cracked and peeling house look like now?
0:53:29 > 0:53:33Well, if you remember, this was two separate rooms.
0:53:33 > 0:53:35So we've taken out the dividing wall.
0:53:35 > 0:53:38There was a chimney breast here so we've removed that.
0:53:38 > 0:53:40Fitted new central heating,
0:53:40 > 0:53:45new gas fire, and a brand-new kitchen with integrated appliances.
0:53:45 > 0:53:48We've blocked up the doorway that was there, fitted a window,
0:53:48 > 0:53:50put in some new French doors
0:53:50 > 0:53:55and we're absolutely delighted with the outcome of the refurbishment.
0:53:58 > 0:54:00Howard's team of builders have worked flat-out
0:54:00 > 0:54:02to completely renovate the bungalow,
0:54:02 > 0:54:05all under the watchful gaze of project manager Jason.
0:54:05 > 0:54:08We've literally gone right the way through the property.
0:54:08 > 0:54:13We have rewired, we've now installed the boiler up in the loft,
0:54:13 > 0:54:16all the walls have all been reskimmed, new coving throughout.
0:54:16 > 0:54:18Most of the woodwork, and literally just
0:54:18 > 0:54:21gone right the way through the property, so really pleased.
0:54:23 > 0:54:26It was a textbook property to do, to be fair.
0:54:26 > 0:54:29And the budget was as predicted - we knew what we were getting into.
0:54:32 > 0:54:33We finished on schedule.
0:54:33 > 0:54:37To be quite honest, it was really quite a straightforward project,
0:54:37 > 0:54:40we didn't unearth anything that we didn't expect,
0:54:40 > 0:54:43um, and it's run, we've managed to do it in four to five weeks
0:54:43 > 0:54:47and that says that the project has run really, really well.
0:54:47 > 0:54:49The job has come in on time.
0:54:49 > 0:54:54And what about the budget of £18,000 that they set themselves?
0:54:54 > 0:54:58Yeah, it's round about the 18,000 mark, probably nearer to 20 now,
0:54:58 > 0:55:01we've done some extra work on the garden
0:55:01 > 0:55:04so we did want to finish it off really well.
0:55:04 > 0:55:09Howard and Jason bought this bungalow for £102,000 at auction.
0:55:09 > 0:55:12Together with their renovation costs of 20,000,
0:55:12 > 0:55:16their total outlay now stands at £122,000.
0:55:18 > 0:55:22Let's find out what two local estate agents think of their investment.
0:55:24 > 0:55:27It's the perfect refurbishment job.
0:55:27 > 0:55:29Ticks all the boxes.
0:55:29 > 0:55:31If you're desperate for a bungalow in a nice close
0:55:31 > 0:55:34that's got some decent space and a private garden,
0:55:34 > 0:55:36why wouldn't you buy this property?
0:55:37 > 0:55:41I really like the property. I think it's modern,
0:55:41 > 0:55:44it's fresh, I think the location of the property is nice,
0:55:44 > 0:55:46it's close to all the local amenities,
0:55:46 > 0:55:48and it's a really nice house.
0:55:48 > 0:55:51I think to bring more value to the property
0:55:51 > 0:55:54they could have done more with the garden for the patio.
0:55:54 > 0:55:57It's not as attractive as it could be,
0:55:57 > 0:55:59they could have added a conservatory, for example,
0:55:59 > 0:56:01or a nice bit of decking.
0:56:01 > 0:56:05The finish is kind of safe in the colouring sense
0:56:05 > 0:56:08which means that the incoming person can do what they want.
0:56:08 > 0:56:11It's non-offensive, hugely, from the word go.
0:56:11 > 0:56:14Howard and Jason bought this property
0:56:14 > 0:56:16with the specific aim of selling it on.
0:56:16 > 0:56:19With a total outlay of £122,000,
0:56:19 > 0:56:22are they on track to make a healthy profit?
0:56:22 > 0:56:25If this property was to come to the open market,
0:56:25 > 0:56:27I'd see it at £160,000.
0:56:27 > 0:56:33I would value this property at £165,000 to £170,000.
0:56:33 > 0:56:35Excellent valuations.
0:56:35 > 0:56:39Pretty much in the ballpark figure where we imagined,
0:56:39 > 0:56:41so yeah, pleased with those.
0:56:41 > 0:56:43No surprises as far as Howard's concerned, then,
0:56:43 > 0:56:46when it comes to those valuations
0:56:46 > 0:56:48which would give him a possible profit
0:56:48 > 0:56:49of between £38,000 and £48,000,
0:56:49 > 0:56:51minus taxes and expenses.
0:56:51 > 0:56:54But if they decide to put this on the rental market,
0:56:54 > 0:56:58how much could it achieve?
0:56:58 > 0:57:01I'd expect it to be on at about £600 per calendar month.
0:57:01 > 0:57:05I think the buyers can achieve at least £650 per calendar month
0:57:05 > 0:57:07to at least £700 per calendar month.
0:57:07 > 0:57:12That would give them a yield of between 6.5 and 8.5%,
0:57:12 > 0:57:15so a decent return. Not surprising, since this business
0:57:15 > 0:57:18is a well-oiled machine.
0:57:18 > 0:57:21It's all about the planning and the research front, really.
0:57:21 > 0:57:24You can't...you know, the more you do upfront,
0:57:24 > 0:57:28the smoother the project is going to run in the end.
0:57:28 > 0:57:31They did their homework before they bought
0:57:31 > 0:57:34and found no surprises when it came to the renovations.
0:57:34 > 0:57:36And there's an added bonus!
0:57:36 > 0:57:40A week into the build we got an offer on the property.
0:57:40 > 0:57:42There was a bit of negotiation to be done,
0:57:42 > 0:57:44and yeah, we finally agreed a private sale.
0:57:44 > 0:57:48So we've managed to save on the agents' fees,
0:57:48 > 0:57:49which is good for us.
0:57:52 > 0:57:54Well, in the ever-changing world of property
0:57:54 > 0:57:56there are always new things to learn,
0:57:56 > 0:57:59and we'll have lots more advice for you next time.
0:57:59 > 0:58:01So make sure you join us then for more Homes Under The Hammer.
0:58:01 > 0:58:03- We'll see you then.- Goodbye. - Goodbye.