0:00:02 > 0:00:04Hello. If you're interested in buying property,
0:00:04 > 0:00:08you want to make sure you buy at the right price, but it's not always easy to do.
0:00:08 > 0:00:11How do you know what the market is doing?
0:00:11 > 0:00:13Is it rising? Is it falling?
0:00:13 > 0:00:19One way to dip your toe in the market and gauge what's happening is to visit your local auction house.
0:00:44 > 0:00:48Auctions are really exciting places to buy but, to guarantee success,
0:00:48 > 0:00:50you must do your homework first.
0:00:50 > 0:00:55Let's see what properties stirred up the interest on today's show.
0:00:56 > 0:01:01Remember to follow the rules at this two-bed terraced house in north Kent.
0:01:01 > 0:01:05Work out your figures because, at the end of the day, it's all about the cost.
0:01:06 > 0:01:10In Morecambe, this terraced property could be a classic hammer horror.
0:01:10 > 0:01:15You start to see indications of... real problems.
0:01:16 > 0:01:20And this run down place in Derbyshire has one big redeeming feature.
0:01:20 > 0:01:24Look at this. An absolutely massive garden!
0:01:24 > 0:01:26What a fantastic find.
0:01:27 > 0:01:29All these properties have been sold at auction.
0:01:29 > 0:01:34We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:34 > 0:01:35Yes, we are. Well done.
0:01:38 > 0:01:42I'm on the north Kent coast, just five miles east of Dartford
0:01:42 > 0:01:46in a small town with an important place in history.
0:01:46 > 0:01:51Swanscombe in Kent was where Britain's second oldest human remains were discovered -
0:01:51 > 0:01:54the so-called Swanscombe Man.
0:01:54 > 0:01:56But the town isn't stuck in the past.
0:01:56 > 0:01:59There's modern developments happening all around
0:01:59 > 0:02:02and we're only a mile from Bluewater shopping centre
0:02:02 > 0:02:05and a five-minute drive to Ebbsfleet International Train Station
0:02:05 > 0:02:08which can take you straight to Paris.
0:02:08 > 0:02:11Sadly, no Gay Paree for me today.
0:02:11 > 0:02:14I'm off to check out a property rather closer to home.
0:02:14 > 0:02:18I'm just a few minutes walk from Swanscombe high street
0:02:18 > 0:02:22and I'm here to see this two-bed mid-terrace property.
0:02:22 > 0:02:27It had a guide price at auction of £85,000 to £90,000.
0:02:27 > 0:02:30And if you like little doggies, this might be the house for you.
0:02:31 > 0:02:35The exterior paintwork does look a little dog-eared in places.
0:02:35 > 0:02:40I don't think this terrace would win any Best In Show awards.
0:02:40 > 0:02:43These terraced houses always feel quite small
0:02:43 > 0:02:46but I would like to call them cosy.
0:02:46 > 0:02:49You can see it does need a lot of decorating.
0:02:49 > 0:02:52It's really old-fashioned, you've got swirly wallpaper on the ceiling,
0:02:52 > 0:02:56a fireplace which once you put back together could look quite nice,
0:02:56 > 0:03:02but something I've noticed which is not a good sign is this - dry rot.
0:03:02 > 0:03:06You can really tell it's dry rot because of the webbing
0:03:06 > 0:03:09and the way it just crumbles in your hand.
0:03:09 > 0:03:12It's a fungus and, believe me,
0:03:12 > 0:03:15that will spread like wildfire through the house.
0:03:15 > 0:03:20It even goes through bricks and concrete so I would get that sorted out as soon as possible.
0:03:20 > 0:03:23That's not a good sign.
0:03:23 > 0:03:28The fungus creeps over and through building materials to reach any wood to feed on.
0:03:28 > 0:03:32Before you know where you are, your house can be crumbling around your ears.
0:03:32 > 0:03:35Rot issues aside, the room is a decent side
0:03:35 > 0:03:37and offers a blank canvas.
0:03:37 > 0:03:41Much of the same thing in the second reception room.
0:03:41 > 0:03:45I would open those stairs up because I think you'd get a lot more light in the room.
0:03:45 > 0:03:50The stairs are very narrow so I think that's something you could do quite cheaply.
0:03:50 > 0:03:54Through here you've got a very small kitchen.
0:03:54 > 0:03:58But more disappointingly, and this really is a disappointment,
0:03:58 > 0:04:03look at this tiny, tiny, weeny little shower room at the end of the property!
0:04:03 > 0:04:10Thinking about this, I suppose you could move this kitchen into this room
0:04:10 > 0:04:14and have a nice open plan kitchen, a lovely sitting room through there,
0:04:14 > 0:04:18but then you have got to move all the surfaces, so that could be quite costly.
0:04:18 > 0:04:22Or, option B, you could think about having an extension across this way,
0:04:22 > 0:04:24putting in a door here,
0:04:24 > 0:04:29and have this as the bathroom and have the kitchen through there.
0:04:29 > 0:04:33So you have got some options but you've got to sit down and work out your figures
0:04:33 > 0:04:35because, at the end of the day, it's all about cost.
0:04:35 > 0:04:40Even if you don't go down the extension route, that lean-to has to go
0:04:40 > 0:04:43and the kitchen would need a total refurbishment.
0:04:43 > 0:04:47The back door has been boarded over so we can't get to the side-return
0:04:47 > 0:04:49or the garden beyond.
0:04:49 > 0:04:52However much you rejig the layout of the ground floor,
0:04:52 > 0:04:55unfortunately, the bathroom will have to stay down here.
0:04:55 > 0:04:57Not ideal.
0:04:57 > 0:05:01But, as far as I can see, there is no way of moving it upstairs
0:05:01 > 0:05:03without sacrificing a bedroom.
0:05:03 > 0:05:07At least they're both good-sized doubles.
0:05:07 > 0:05:11The one at the back has a hand basin and a boiler.
0:05:11 > 0:05:14From up here, you can see the garden,
0:05:14 > 0:05:17which looks like it's going to need a bit of hard graft to tidy it up.
0:05:17 > 0:05:21We invited a local estate agent to come and take a look at the property
0:05:21 > 0:05:24to see what he thinks of this two-bed terrace
0:05:24 > 0:05:27which was guided at £85,000 to £90,000.
0:05:27 > 0:05:29It's a good-sized property.
0:05:29 > 0:05:32It's a blank canvas for someone to put their own mark on it.
0:05:32 > 0:05:34There's a lot of potential.
0:05:34 > 0:05:38You can do a lot with the kitchen and that rear space. Good property.
0:05:38 > 0:05:42What about extending at the rear of the property? Is that advisable?
0:05:42 > 0:05:44I probably wouldn't advise extending
0:05:44 > 0:05:47as the cost may eat into the profit from the property.
0:05:47 > 0:05:52To keep the cost down, I would look at bringing the kitchen into that rear reception room,
0:05:52 > 0:05:56then using the kitchen space as a bathroom or shower area.
0:05:56 > 0:06:00Once refurbished, what is the rental potential?
0:06:00 > 0:06:03We are looking at around £700 per calendar month.
0:06:03 > 0:06:08How about a resale valuation after it's been done up?
0:06:08 > 0:06:11Depending on the finish of the property,
0:06:11 > 0:06:14we are looking at figures between £125,000 and £140,000 in this area.
0:06:14 > 0:06:18Probably looking towards the top of that end, so about £135,000.
0:06:19 > 0:06:23This small Swanscombe house does have potential,
0:06:23 > 0:06:26but you need to rejig the layout, modernise that kitchen
0:06:26 > 0:06:28and try and squeeze in a bathroom somewhere.
0:06:28 > 0:06:32And then I think you'll end up with a nice little property.
0:06:32 > 0:06:36Let's find out who was tempted by this terrace when we head to auction.
0:06:36 > 0:06:39Number 94. 85 to 90 is the guide price.
0:06:39 > 0:06:42Where do you want to start? 85,000? Start me where you will.
0:06:42 > 0:06:45Start me at 80. £80,000. I'm on the way.
0:06:45 > 0:06:49At 80, sitting in front of me. And two at 82.
0:06:49 > 0:06:5282. And five. 85?
0:06:52 > 0:06:5485. And 88 at the back?
0:06:54 > 0:06:5686? I'll take one if it helps you.
0:06:56 > 0:07:0086,000? Otherwise at 85,000 to the gentleman sitting down.
0:07:00 > 0:07:0386 I've got over on the right. 87.
0:07:03 > 0:07:06And eight. 88 I've got.
0:07:06 > 0:07:0989 or make it 90 if you want. 90? 90 I've got.
0:07:09 > 0:07:12And two? 92? You know what it's worth.
0:07:12 > 0:07:15Otherwise £90,000, sitting in front of me again.
0:07:15 > 0:07:18At 90,000 for the first time.
0:07:18 > 0:07:20£90,000 for the second.
0:07:20 > 0:07:2490,000 for the third and final time. If you're sure you're all done.
0:07:24 > 0:07:27It's yours, sir, at £90,000. Well done.
0:07:27 > 0:07:30The successful bidders, Dave and Christine,
0:07:30 > 0:07:32secured the mid-terrace for £90,000.
0:07:32 > 0:07:36The couple have featured on Homes Under the Hammer before
0:07:36 > 0:07:39when they bought a property in Gravesend.
0:07:39 > 0:07:41# I can do it again
0:07:41 > 0:07:45# I can do anything, honey Do, do, do it again... #
0:07:45 > 0:07:48This time around in Swanscombe,
0:07:48 > 0:07:52Dave was busy when I visited doing his day job managing a golf course,
0:07:52 > 0:07:56so I met up with his wife Christine who is a singing teacher
0:07:56 > 0:07:59and their builder Chris to hear about their plans for this place.
0:07:59 > 0:08:03Christine, we met about a year ago on the show.
0:08:03 > 0:08:05Chris, I've never met you before.
0:08:05 > 0:08:09Chris has been in charge of all our developments since we started
0:08:09 > 0:08:12so it's for him to talk about what we're going to do to this property.
0:08:12 > 0:08:15When I saw you a year ago, you'd bought a place in Gravesend
0:08:15 > 0:08:17that you were going to renovate and let out.
0:08:17 > 0:08:21- What have you been doing since then? - We have bought several more.
0:08:21 > 0:08:24Really?! Wait a minute, what number are we up to now?
0:08:24 > 0:08:28This is actually our sixth investment property.
0:08:28 > 0:08:30So number six already.
0:08:30 > 0:08:34Why this one and what did you like about this property?
0:08:34 > 0:08:36This was down to how much money we had.
0:08:36 > 0:08:40We released some capital from that property in Gravesend to help us buy this.
0:08:40 > 0:08:44We had to look at what we could afford, so that left us
0:08:44 > 0:08:47only about two or three houses in this particular auction
0:08:47 > 0:08:50and we got it for the right price on the day.
0:08:50 > 0:08:54Christine's husband Dave not only works on a golf course,
0:08:54 > 0:08:58he plays there too, so he won't be doing much of the hands-on work.
0:08:58 > 0:09:00However, he has been keeping an eagle eye out
0:09:00 > 0:09:02for useful contacts on the green.
0:09:02 > 0:09:04# Straight down the middle
0:09:04 > 0:09:07# It went straight down the middle... #
0:09:07 > 0:09:12So far, he has a gas engineer and an electrician ready to tee off.
0:09:12 > 0:09:15Builder Chris reckons this is a good buy.
0:09:15 > 0:09:17It's got a lot of potential.
0:09:17 > 0:09:20The main thing about it, on my advice, structurally, it's safe,
0:09:20 > 0:09:23apart from a couple of iffy bits and bobs here,
0:09:23 > 0:09:25but other than that, it's a structurally safe building.
0:09:25 > 0:09:28It's a mid-terrace so a good little property to work with.
0:09:28 > 0:09:33Christine, let's talk about this property and how you guys are going to turn this place around.
0:09:33 > 0:09:36At the moment we've got a couple of reception rooms, a kitchen
0:09:36 > 0:09:39and a ridiculous bathroom at the back of the property.
0:09:39 > 0:09:43- What are your options, do you think? - We have discussed lots of options.
0:09:43 > 0:09:46We've thought we might even put a kitchen in here
0:09:46 > 0:09:50and just make that a decent-sized bathroom.
0:09:50 > 0:09:54But that can be quite expensive because we'd have to take the chimney breast out,
0:09:54 > 0:09:57we'd have to bring all the plumbing in to do that,
0:09:57 > 0:10:01so I'm more thinking now that we're going to knock through where that window is at the moment,
0:10:01 > 0:10:06build a square box on that, and make that into a decent sized kitchen
0:10:06 > 0:10:08with a small bathroom on the side
0:10:08 > 0:10:11so we can get a bath in and a proper toilet.
0:10:11 > 0:10:14There's no way of putting it upstairs effectively.
0:10:14 > 0:10:17But we're hoping that because we bought it reasonably well
0:10:17 > 0:10:20and where it is in the market, it's right at the bottom,
0:10:20 > 0:10:24we might be able to sell it in the end rather than rent it out.
0:10:24 > 0:10:27Does it work out financially better for you to do that -
0:10:27 > 0:10:30not to put the kitchen in here and to build an extension?
0:10:30 > 0:10:34- Have you done your number crunching? - That's what we're in the middle of at the moment.
0:10:34 > 0:10:37It's still, you know, we may go one way, we may go the other,
0:10:37 > 0:10:41but I do think it would be such a small kitchen in here
0:10:41 > 0:10:44and it steals another room from the property that, in a way,
0:10:44 > 0:10:48it would be cheaper and better to just build on existing what's there.
0:10:48 > 0:10:52Christine favours building an extension and rejigging the layout
0:10:52 > 0:10:55but that's not all that's needed here.
0:10:55 > 0:10:57I think builder Chris will be kept busy.
0:10:57 > 0:11:00We're thinking the electrical side is fine,
0:11:00 > 0:11:02it may need to be rewired in certain places,
0:11:02 > 0:11:05a new gas supply from the meter brought in,
0:11:05 > 0:11:08then we've got our services here and running up
0:11:08 > 0:11:11and upstairs keep the bedrooms exactly the same.
0:11:11 > 0:11:13New skirtings, architraves, full decoration.
0:11:13 > 0:11:16We've noticed a bit of dry rot this morning
0:11:16 > 0:11:18but Chris tells me that can all be sorted out.
0:11:18 > 0:11:22It looks a lot worse than it is. The garden needs a lot of work but superficial.
0:11:22 > 0:11:26Let's talk about the budget. How much have you got to spend on this
0:11:26 > 0:11:28because that's what it really boils down to?
0:11:28 > 0:11:32We think it's probably going to be around 20. Those sorts of figures.
0:11:32 > 0:11:35£20,000 is your budget. What is the timescale?
0:11:35 > 0:11:37Chris, how long is this going to take?
0:11:37 > 0:11:40You're looking at about eight weeks in total.
0:11:40 > 0:11:42I'd say no longer than that.
0:11:42 > 0:11:45- It might be a bit longer than that. - What has got to happen to me?
0:11:45 > 0:11:48- He's got to have surgery.- I've got to have open heart surgery.
0:11:48 > 0:11:51What?! That's a bit of a curveball.
0:11:51 > 0:11:54- So you've got to have open heart surgery...- In four weeks' time.
0:11:54 > 0:11:57So how are you going to work that out?
0:11:57 > 0:12:00I'll be out of the game for a couple of weeks, I can't do a lot,
0:12:00 > 0:12:03but I've got a very able and willing team of fellas
0:12:03 > 0:12:06who will take the reins and get it through.
0:12:06 > 0:12:09We wish you the best with that and we will be thinking of you.
0:12:09 > 0:12:12- Thank you very much. - Don't work too hard.- No, I will not.
0:12:12 > 0:12:16So, property number six for Christine,
0:12:16 > 0:12:20but this time she hopes to sell and not let the property out
0:12:20 > 0:12:23so I think she needs to keep a tight rein on that budget,
0:12:23 > 0:12:28but to add to that, Chris the builder is having open heart surgery.
0:12:28 > 0:12:31Will he recover in time to get that place finished?
0:12:31 > 0:12:35Join us later in the programme and you can find out what happens.
0:12:39 > 0:12:43I'm in Morecambe, famous for potted shrimps, the kite festival
0:12:43 > 0:12:46and being the hometown of Eric Morecambe.
0:12:46 > 0:12:48In fact, he took his name from the town.
0:12:48 > 0:12:53Like many British seaside resorts, Morecambe has had its fair share of problems in recent history,
0:12:53 > 0:12:56but it looks like things are on the up.
0:12:56 > 0:13:01There's a sea of change. Maybe there is some sunshine on the way.
0:13:02 > 0:13:04# Bring me sunshine
0:13:04 > 0:13:06# In your smile
0:13:07 > 0:13:10# Bring me laughter
0:13:10 > 0:13:13# All the while... #
0:13:13 > 0:13:15Well, the sun might be absent,
0:13:15 > 0:13:18but the winds of change have certainly swept through Morecambe,
0:13:18 > 0:13:22which used to have two piers and throngs of tourists.
0:13:22 > 0:13:25Now that's all gone, but the outlook for Morecambe is promising
0:13:25 > 0:13:28with an action plan to regenerate the area.
0:13:28 > 0:13:33The property I'm here to see couldn't be more centrally located.
0:13:33 > 0:13:36You've got the railway station and the town centre a few minutes' walk away,
0:13:36 > 0:13:40the beach close by and you're right behind a supermarket.
0:13:40 > 0:13:42So, what do you reckon it's going to cost
0:13:42 > 0:13:45to get a six-bedroom property around here?
0:13:45 > 0:13:48Well, have you got £30,000 to £35,000 to spare?
0:13:48 > 0:13:53No, that's not for the deposit, that's for the whole thing.
0:13:53 > 0:13:57There's got to be a catch. There has to be a catch.
0:13:57 > 0:14:01# Catch a falling star and put it in your pocket
0:14:01 > 0:14:05# Never let it fade away... #
0:14:05 > 0:14:09Well, I fear this star may have fallen a rather long way.
0:14:10 > 0:14:17So, a teeny-weeny guide price and very low expectations have I.
0:14:17 > 0:14:20But, OK, I can see some potential straight away.
0:14:20 > 0:14:23I love the fact you've got these original features.
0:14:23 > 0:14:25A large front room. It's got an open fire.
0:14:25 > 0:14:29Stairs up to the bedrooms, et cetera.
0:14:29 > 0:14:33A rear living room there. It's a real state but, in its day,
0:14:33 > 0:14:37I think this would have been one of Morecambe's smarter houses.
0:14:37 > 0:14:43At the moment, though, smart it certainly is not.
0:14:43 > 0:14:46Lots and lots and lots and lots of stuff here.
0:14:46 > 0:14:49Pans. Urgh!
0:14:49 > 0:14:52Yes...but, as property professionals,
0:14:52 > 0:14:56we have got to look through this surface clutter
0:14:56 > 0:14:59and think about what the house might be.
0:14:59 > 0:15:02One thing it's certainly going to need is a new boiler.
0:15:02 > 0:15:04I think that's slightly beyond repair.
0:15:05 > 0:15:08Yeah, this one needs a serious clear out.
0:15:08 > 0:15:13Safety gloves and a skip permit for starters.
0:15:13 > 0:15:18But, looking through all this stuff, there are three well-proportioned rooms on the ground floor.
0:15:18 > 0:15:23Up the stairs to a loo and the bathroom which is, shall we say,
0:15:23 > 0:15:25well ventilated at the moment.
0:15:25 > 0:15:29Then there are three of the six bedrooms.
0:15:29 > 0:15:33The first is huge, the second not bad
0:15:33 > 0:15:35and the third is chock-a-block.
0:15:35 > 0:15:39I've got a feeling this one needs everything ripping out
0:15:39 > 0:15:41and starting from scratch.
0:15:41 > 0:15:45I'm afraid it doesn't get any better the higher I climb.
0:15:45 > 0:15:49Certainly something has been living here recently of the feathered variety.
0:15:49 > 0:15:54And much more seriously up here, you start to see...
0:15:54 > 0:15:56indications of...
0:15:58 > 0:16:00..real problems.
0:16:01 > 0:16:05That might even be dry rot. But as you can see, it's a state.
0:16:05 > 0:16:08Obviously there's a major problem with the roof,
0:16:08 > 0:16:11guttering, lead flashing, whatever, it's a bit of a nightmare.
0:16:11 > 0:16:16Erm, and the state of the property, it continues.
0:16:16 > 0:16:18A nice open plan feeling here.
0:16:18 > 0:16:23No window and, again, indications on the ceiling here
0:16:23 > 0:16:25of just how serious the problems are.
0:16:25 > 0:16:29Downstairs, it was like, OK, it's a bit of a mess.
0:16:29 > 0:16:33Come up here and it starts to get really scary because it's structural stuff.
0:16:33 > 0:16:37It's the roof, it's damp, it's water ingress, it's pigeons,
0:16:37 > 0:16:39it's everything.
0:16:39 > 0:16:42Also, in terms of space, two little rooms.
0:16:42 > 0:16:45Would you knock that through to create one big one? Probably.
0:16:45 > 0:16:49But it's one of those properties, you've got to start with getting the shell outside sorted
0:16:49 > 0:16:53and then move inside to get the house into some kind of a state.
0:16:53 > 0:16:57One thing you can say though, on the positive side, it's big.
0:16:58 > 0:17:00# Size matters, size matters
0:17:00 > 0:17:03# But not how you think...#
0:17:03 > 0:17:05Yeah, in this case, size really does matter
0:17:05 > 0:17:08because on top of the structural work,
0:17:08 > 0:17:11you've got to strip back and reinstate six bedrooms,
0:17:11 > 0:17:16a loo, and only one bathroom, which could be too few.
0:17:16 > 0:17:19Two reception rooms, a kitchen and just when you thought that was it,
0:17:19 > 0:17:22another two rooms on the lower ground floor.
0:17:22 > 0:17:26Then there's a garden of sorts to tidy at the back
0:17:26 > 0:17:32and, is it just me or is that greenery growing out of the wall?
0:17:32 > 0:17:35Deep pockets are an absolute must here.
0:17:35 > 0:17:37So, what to do with a place this size?
0:17:37 > 0:17:39Ideal for flats, you might think.
0:17:39 > 0:17:43However, the local council now have a moratorium on large houses
0:17:43 > 0:17:47being turned into flats or houses of multiple occupancy.
0:17:47 > 0:17:52But they are very keen that they remain as large houses.
0:17:52 > 0:17:54So, what are the downsides here?
0:17:54 > 0:17:58It's a big house with a tiny garden on a fairly busy road.
0:17:58 > 0:18:00Perhaps not ideal for families,
0:18:00 > 0:18:06but you can't deny that it's a lot of house, so could it have a decent profit in it?
0:18:06 > 0:18:10We asked a local estate agent for his take on this monster property.
0:18:10 > 0:18:12The best future I see for this house
0:18:12 > 0:18:17is either for it to be renovated into a large family home
0:18:17 > 0:18:20and either resold to a family purchaser
0:18:20 > 0:18:26or sold to a landlord who would then rent it off to a large family.
0:18:26 > 0:18:29In both markets, those families would be working to a budget.
0:18:31 > 0:18:35OK, the guide price was £30,000 to £35,000,
0:18:35 > 0:18:39but, if done up and sold on, what might it fetch?
0:18:39 > 0:18:43The ceiling price for a property within this area
0:18:43 > 0:18:48I would imagine would achieve somewhere in the region of £75,000.
0:18:48 > 0:18:53So there might be a profit in there with careful budgeting.
0:18:53 > 0:18:55What about rental values as a family home?
0:18:55 > 0:18:59We would be looking probably at achieving somewhere between £550
0:18:59 > 0:19:02and £600 per calendar month.
0:19:02 > 0:19:05Well, it's certainly a big house
0:19:05 > 0:19:09which could generate gigantic returns once it's done.
0:19:09 > 0:19:13However, there's a lot of work to do to get it to that point.
0:19:13 > 0:19:16Let's see who was willing to take it on when it went under the hammer.
0:19:17 > 0:19:20This was very nearly the last lot of the day
0:19:20 > 0:19:23but there were still buyers interested.
0:19:23 > 0:19:27£15,000, that's all, to start. £15,000 do we see?
0:19:27 > 0:19:3115 towards the back on my left I've got. 16, then?
0:19:31 > 0:19:3316,000? 16 here. 17? Got it.
0:19:33 > 0:19:3718? Yes. 19? 19,000.
0:19:37 > 0:19:3920, then? Got that. 21?
0:19:39 > 0:19:4121 we've got. 22?
0:19:41 > 0:19:44Got it. 23? 23 I've got. Yes.
0:19:44 > 0:19:4724? 24 I've got. 25?
0:19:47 > 0:19:51No. At £24,000. 25? Yes.
0:19:51 > 0:19:5425, gentleman in the grey top. 25,000 here.
0:19:54 > 0:19:5726? Do you want to come back? Shaking his head.
0:19:57 > 0:20:01The gentleman in the aisle, halfway down in the grey top, at £25,000.
0:20:01 > 0:20:04I'll sell it at £25,000 if we're all finished.
0:20:04 > 0:20:06First time at 25. Gentleman here.
0:20:06 > 0:20:10Second time, £25,000. Are we all done? Yes, we are.
0:20:13 > 0:20:17That successful bid of just £25,000 came from Mike,
0:20:17 > 0:20:19a tiler from the Manchester area.
0:20:19 > 0:20:26I met him back at the property to see if he was going into this one with his eyes open.
0:20:26 > 0:20:29# You're just too good to be true
0:20:29 > 0:20:33# Can't take my eyes off of you... #
0:20:36 > 0:20:39- Mike, congratulations. Nice to meet you.- And you.
0:20:39 > 0:20:43- A bit of a mess, isn't it? - Just a bit.
0:20:44 > 0:20:48That's what I thought when I first looked at it. It is a mess.
0:20:48 > 0:20:51- But it obviously didn't put you off. - I'd already bought it.
0:20:51 > 0:20:56- How do you mean?- Well, I bought it at the auction without seeing it.
0:20:56 > 0:20:58Why?
0:20:58 > 0:21:02Erm...it weren't the one I went for at the auction.
0:21:02 > 0:21:07The one I went for, I couldn't afford. It had gone past my price.
0:21:07 > 0:21:09So I was left with this.
0:21:09 > 0:21:13Well, I weren't left with this. I just wanted to plunge in and get a house and I ended up with this.
0:21:13 > 0:21:16- Right. So you hadn't seen it inside? - No.
0:21:16 > 0:21:19- Had you read the legal pack?- No.
0:21:19 > 0:21:23- You know you could have got yourself into all sorts of trouble, don't you?- Yes.
0:21:23 > 0:21:27- Driven past it?- No, I hadn't seen it.- You hadn't seen it from the outside either?- No.
0:21:27 > 0:21:32The first time I seen it was in the auction and then about a week later I come up and had a look.
0:21:32 > 0:21:34That was the first time I seen it.
0:21:34 > 0:21:36Are you so, what's the word, cavalier,
0:21:36 > 0:21:38in all the rest of your life?
0:21:38 > 0:21:40I think, sometimes, yeah.
0:21:40 > 0:21:44When I went to the auction... I've been to a few auctions,
0:21:44 > 0:21:49and this was in my price range, and I thought, I'll go for it.
0:21:49 > 0:21:53I know the state it's in but I knew that for what I was going to pay,
0:21:53 > 0:21:56they were going to be a mess - it was nothing going to be good,
0:21:56 > 0:21:58so I went for it then.
0:21:58 > 0:22:01Do you think the state might have put a few people off?
0:22:01 > 0:22:04I think so, yes. I think it would have.
0:22:04 > 0:22:08When I got in, it put me off, it gave me a second thought.
0:22:08 > 0:22:09A bit late, isn't it?
0:22:11 > 0:22:15# And it's too late, baby, now It's too late
0:22:15 > 0:22:20# Though we really did try to make it... #
0:22:20 > 0:22:23But Mike's not going to sit around feeling sorry for himself.
0:22:23 > 0:22:27He's a hands-on kind of guy who will do as much as he can himself
0:22:27 > 0:22:30to turn this property around and sell it on.
0:22:31 > 0:22:34First of all, I'm going to seal it, secure it,
0:22:34 > 0:22:37and then have a good look - check all over.
0:22:37 > 0:22:39It was always going to be a rip out,
0:22:39 > 0:22:43full rewire, heating system, all the windows.
0:22:43 > 0:22:47It needs a lot of work on it. It doesn't scare me though.
0:22:47 > 0:22:49I'll just get into it and get it done.
0:22:49 > 0:22:53- And you'll personally do the work? - I'll do the majority of it.
0:22:53 > 0:22:59There's things I can't do, like the electric and the certified stuff you need a certificate for,
0:22:59 > 0:23:02but the rest of the work, the plastering and the ceilings,
0:23:02 > 0:23:04they will come down and change them.
0:23:04 > 0:23:08- New kitchen, new bathroom. - Yeah, new kitchen, new bathroom.
0:23:08 > 0:23:12What about outside? All the guttering is shot and the roof looks...not sure.
0:23:12 > 0:23:16I've had a look at the roof and just the bay roof here's leaking.
0:23:16 > 0:23:19The roof upstairs seems to be all right
0:23:19 > 0:23:22but a lot of it's from the gutter down there.
0:23:22 > 0:23:25It's bringing the damp through the walls. Again, not a big job.
0:23:28 > 0:23:30It's great to meet an optimist
0:23:30 > 0:23:33and I do really admire Mike's can-do attitude.
0:23:33 > 0:23:37He's giving himself six months to get this place back on the resale market
0:23:37 > 0:23:40but what kind of a budget is he working to?
0:23:40 > 0:23:43What I paid for it, I had about £38,000.
0:23:43 > 0:23:48I've paid £25,000 now, plus the cost,
0:23:48 > 0:23:51so I reckon I've got about £10,000.
0:23:51 > 0:23:53- I don't think that will be enough.- No.
0:23:53 > 0:23:55But I'll have to deal with that as it comes along.
0:23:55 > 0:23:59- How are you going to deal with it as it comes along?- There's options.
0:23:59 > 0:24:02- Bank loans, stuff like that.- Right.
0:24:02 > 0:24:04- Well, good luck.- Cheers.
0:24:04 > 0:24:08- I really look forward to seeing how you transform the place.- Hopefully.
0:24:10 > 0:24:13Well, just because Mike got the property cheap
0:24:13 > 0:24:17does not mean he's not going to have to spend a lot of money sorting it out.
0:24:17 > 0:24:19In fact, the opposite.
0:24:19 > 0:24:22£10,000 really isn't even going to scratch the surface,
0:24:22 > 0:24:25once he's found the surface, that is!
0:24:25 > 0:24:28Probably about 150 skips from now.
0:24:28 > 0:24:33You can find out how he gets on with this mammoth project later in the show.
0:24:34 > 0:24:38Coming up, this house in Derbyshire shows signs of cracking up.
0:24:38 > 0:24:42It'll be OK as long as it doesn't go through to the other side.
0:24:42 > 0:24:43Oh, dear.
0:24:44 > 0:24:51In Morecambe, Lancashire, how hard was it to move the rubbish from this six-bedroomed house?
0:24:51 > 0:24:54It took a good few skips to get shot of it all.
0:24:55 > 0:25:01And in Kent, it's not often you hear owners talking about their builders working too hard.
0:25:01 > 0:25:04He did try and do too many things too quickly.
0:25:08 > 0:25:11Earlier in the programme, in the Kent town of Swanscombe,
0:25:11 > 0:25:14this two-bed terrace was bought for £90,000
0:25:14 > 0:25:17by Christine and her husband Dave.
0:25:17 > 0:25:20It was the couple's sixth investment purchase.
0:25:20 > 0:25:22They had appeared on the programme a year earlier
0:25:22 > 0:25:26when they bought another property in Gravesend, Kent.
0:25:27 > 0:25:32In this Swanscombe property, it was Christine and their builder Chris who showed me around
0:25:32 > 0:25:36as Dave was busy managing the golf club where he works.
0:25:37 > 0:25:41They were hoping their budget of £20,000 would allow them to build
0:25:41 > 0:25:45an extension or move the kitchen and improve the teeny-weeny shower room.
0:25:45 > 0:25:49However, there were few options given the space upstairs.
0:25:49 > 0:25:51There was also dry rot to tackle
0:25:51 > 0:25:54and a garden somewhere underneath all that stuff.
0:25:54 > 0:26:00As if that wasn't enough, builder Chris was facing some further complications.
0:26:00 > 0:26:03- He's got to have surgery. - Open heart surgery.- What?!
0:26:03 > 0:26:07Wait a minute! That's a bit of a curveball. You've got to have open heart surgery?
0:26:07 > 0:26:10- In four weeks' time. - How are you going to work that out?
0:26:10 > 0:26:13I will be out of the game for a couple of weeks,
0:26:13 > 0:26:16I can't do a lot, but I've got a very able and willing team of fellas
0:26:16 > 0:26:18who will take the reins and get it through.
0:26:18 > 0:26:22It meant that both Chris and the house needed attention.
0:26:22 > 0:26:25Five-and-a-half months have now passed.
0:26:27 > 0:26:30Well, the exterior looks so much better.
0:26:30 > 0:26:34Clearly, Christine, Dave and builder Chris have added that extension
0:26:34 > 0:26:39and just look how the ground floor accommodation has changed.
0:26:45 > 0:26:48The house has been opened up thanks to the new extension,
0:26:48 > 0:26:50which didn't require planning permission
0:26:50 > 0:26:53as it was within permitted development.
0:26:53 > 0:26:55Christine is delighted with it.
0:26:55 > 0:26:59I'm now standing in what was originally the old lean-to
0:26:59 > 0:27:02that was full of rubbish.
0:27:02 > 0:27:06We decided to put the wall here, have the bathroom next to the kitchen,
0:27:06 > 0:27:09creates this nice long run of units
0:27:09 > 0:27:13which is easy to design and to manage.
0:27:13 > 0:27:16A brand-new built-in cooker and cooker hood.
0:27:16 > 0:27:20This lovely skylight which makes such a difference. A lovely bit of light.
0:27:20 > 0:27:23Otherwise it makes the dining room so dark.
0:27:23 > 0:27:27Over on this side of the room, this is the space for the refrigerator
0:27:27 > 0:27:30and the plumbing for the washing machine.
0:27:30 > 0:27:33And I'll show you into the bathroom.
0:27:34 > 0:27:37This is a very small space but very, very functional.
0:27:37 > 0:27:40The original plan was to do the work in eight weeks.
0:27:40 > 0:27:44However, Christine and her husband Dave were happy to wait
0:27:44 > 0:27:47until builder Chris was ready and able to finish the job.
0:27:47 > 0:27:50It's the same team as we've used for all our other developments
0:27:50 > 0:27:54but, as you know, Chris had his heart operation right in the middle of this development.
0:27:54 > 0:27:57I didn't want to swap it onto anybody else.
0:27:57 > 0:27:59I'd rather use the people we're used to.
0:27:59 > 0:28:01It's great to see Chris back.
0:28:01 > 0:28:04Obvious question, how is he feeling now?
0:28:04 > 0:28:09Very well, thank you very much. I must consider myself a lucky man.
0:28:09 > 0:28:13I had to be off for four months so it took longer due to my health
0:28:13 > 0:28:17but I'm pleased with the outcome and I think the client, Christine and David, are as well.
0:28:17 > 0:28:21I was worried that he was going to overdo it. I think he did at one stage.
0:28:21 > 0:28:24Yes, he did try to do too many things too quickly, as usual,
0:28:24 > 0:28:28- but he's fighting fit now. - I think he's back to normal.
0:28:29 > 0:28:33The dry rot in the front living room has been treated.
0:28:33 > 0:28:37Apart from this new fire, central heating and replacement boiler have been installed.
0:28:37 > 0:28:40Some of the house has also been rewired.
0:28:42 > 0:28:47The two bedrooms upstairs didn't require any major structural work.
0:28:47 > 0:28:51There has been some replastering and the windows were replaced.
0:28:52 > 0:28:56Although the dry rot was downstairs, the timbers in the whole house
0:28:56 > 0:28:59had to be sprayed and the floorboards replaced.
0:28:59 > 0:29:02That added about £900 to the budget,
0:29:02 > 0:29:07but the house now has the crucial certification if they decide to sell.
0:29:07 > 0:29:09So, what are their plans?
0:29:10 > 0:29:13We're really interested to see what the valuations are going to be.
0:29:13 > 0:29:18I think it's worth trying to sell it but, if we don't get top money, I'd rather rent it for a bit.
0:29:18 > 0:29:21There's things happening in Swanscombe as well.
0:29:21 > 0:29:23There's some big developments planned
0:29:23 > 0:29:27so that may help the value of the place in the future.
0:29:27 > 0:29:30But if we sell it, we'll only go and buy another one.
0:29:33 > 0:29:39What effect did the damp and the longer time scale have on their £20,000 initial budget?
0:29:39 > 0:29:42A little bit over budget, by about another £5,000,
0:29:42 > 0:29:46so really the budget came in at about £25,000.
0:29:46 > 0:29:49Added to the £90,000 they paid at auction,
0:29:49 > 0:29:53that means their total investment is £115,000.
0:29:55 > 0:29:57We invited two local estate agents
0:29:57 > 0:30:00to come and have look at the property.
0:30:00 > 0:30:05Will their valuations prove to be the icing on the cake for this refurbishment team?
0:30:07 > 0:30:10I think the extension was a worthwhile build.
0:30:10 > 0:30:13It extended the kitchen very nicely and kept the downstairs bathroom.
0:30:13 > 0:30:16First impressions are how big the kitchen is, how bright it is.
0:30:16 > 0:30:18What they've done to the property with the extension.
0:30:18 > 0:30:21I think the standard of work is excellent.
0:30:21 > 0:30:26All beiges and all very neutrals. Very saleable and very rentable.
0:30:26 > 0:30:29How much rental income could the house achieve?
0:30:29 > 0:30:32On today's market, it will achieve £700 per calendar month.
0:30:32 > 0:30:35The rental value would be £700 per calendar month.
0:30:35 > 0:30:38Those valuations would produce yield over 7%
0:30:38 > 0:30:42if they get £700 per calendar month.
0:30:42 > 0:30:45- That's about what we thought. - That's about right.
0:30:45 > 0:30:48I'm sure we would get at least £700 for it.
0:30:48 > 0:30:53Is the house worth more than the £115,000 the couple have invested here?
0:30:53 > 0:30:58I would probably put it on the market for £135,995,
0:30:58 > 0:31:00probably to achieve £134,000 to £133,000.
0:31:00 > 0:31:03I believe once they've finished with the property
0:31:03 > 0:31:06we should be looking in the region of £135,000.
0:31:06 > 0:31:10That could mean a potential profit of between £18,000 and £20,000,
0:31:10 > 0:31:13minus the usual tax and expenses.
0:31:13 > 0:31:17The resale value, £135,000, that's what we'd expected to get for it.
0:31:17 > 0:31:21We might market it at £140,000, but in the hope we would get £135,000.
0:31:24 > 0:31:28The couple have already bought six investment properties.
0:31:28 > 0:31:30Are they planning to add to that total?
0:31:32 > 0:31:35I think we're going to carry on doing this, aren't we?
0:31:35 > 0:31:38Yeah, we'll keep going, as long as we can find the finance.
0:31:38 > 0:31:40It's something we've always wanted to have a go at.
0:31:40 > 0:31:42All the while we're doing OK, we'll carry on.
0:31:42 > 0:31:45Not old enough to retire.
0:31:46 > 0:31:47Not yet.
0:31:49 > 0:31:54Today I'm in the hilltop market town of Heanor in Derbyshire.
0:31:54 > 0:31:56This place grew up around the textile industry
0:31:56 > 0:32:00and many of the houses were built to house the textile workers.
0:32:00 > 0:32:02Some have fared better than others,
0:32:02 > 0:32:06so what will the one I'm here to see today be like?
0:32:06 > 0:32:09Despite those industries being long gone,
0:32:09 > 0:32:12Heanor's population has been growing steadily.
0:32:12 > 0:32:16Its proximity to Nottingham and Derby, both about ten miles away,
0:32:16 > 0:32:18make it a handy commuter spot.
0:32:19 > 0:32:26The property I'm here to see today is a two-bedroom double-fronted semi-detached.
0:32:26 > 0:32:30At a guide price of £35,000 plus, very close to the town centre,
0:32:30 > 0:32:34so that's good for local facilities et cetera.
0:32:34 > 0:32:36Let's have a look inside.
0:32:36 > 0:32:40Double glazed door, sadly you can't say the same about the windows.
0:32:40 > 0:32:43They're going to have to be replaced.
0:32:43 > 0:32:45But straight into your front living room area.
0:32:45 > 0:32:50It's not a bad space, although I am seeing some signs of damp in this corner.
0:32:50 > 0:32:53If that was new plaster and you had this white stuff on it,
0:32:53 > 0:32:56the crystals, whatever it is, salts drying out, I wouldn't be too concerned,
0:32:56 > 0:33:01but that is actually very old so that is a sign of damp.
0:33:01 > 0:33:03And that's not good news either.
0:33:03 > 0:33:07A big, nasty crack above the door.
0:33:07 > 0:33:10It'll be OK as long as it doesn't go through to the other side.
0:33:11 > 0:33:13Oh, dear. It does.
0:33:13 > 0:33:18That could be a potential problem with some kind of subsidence. Needs to be checked out.
0:33:18 > 0:33:21But this is the second of your front rooms.
0:33:21 > 0:33:24Again, not a bad size, lots of light coming in through the windows,
0:33:24 > 0:33:29but you can see straight away it's a gut it and start again kind of property.
0:33:30 > 0:33:33OK, it's in a right old state,
0:33:33 > 0:33:37especially the kitchen, which has obviously seen better days.
0:33:37 > 0:33:39Those cracks are deeply worrying
0:33:39 > 0:33:43but not unusual in this former mining area.
0:33:43 > 0:33:47# Everybody knows it's the industrial disease... #
0:33:47 > 0:33:50It's obvious it's not been lived in for years.
0:33:50 > 0:33:54However, look past the obvious signs of neglect and you will find
0:33:54 > 0:33:57a lovely old house full of features and good-sized rooms.
0:33:57 > 0:33:59Hopefully it'll be the same upstairs,
0:33:59 > 0:34:01without the cracks, of course.
0:34:01 > 0:34:05So, upstairs, and quite an interesting layout.
0:34:05 > 0:34:07Facing you when you double back around the stairs
0:34:07 > 0:34:10is a very large bathroom and loo.
0:34:10 > 0:34:13My guess is that was originally a bedroom
0:34:13 > 0:34:15and the bathroom has been moved up here at some point.
0:34:15 > 0:34:19It's left you with just two bedrooms, one on that side,
0:34:19 > 0:34:22not a bad size, and another one here, again not a bad size.
0:34:22 > 0:34:25So you've lost a bedroom.
0:34:25 > 0:34:28I think there's some internal modifications you could do here.
0:34:28 > 0:34:32Maybe make that bathroom a little bit smaller. Get that third bedroom back.
0:34:32 > 0:34:36You want to talk to a local estate agent, find out what kind of difference it would make
0:34:36 > 0:34:40in terms of potential rental yield or, if you're buying it for yourself,
0:34:40 > 0:34:43if you really need that extra room, and then make your decision.
0:34:43 > 0:34:48But look, the nasty old crack has continued upstairs.
0:34:48 > 0:34:53That is much more a worry than any internal modifications.
0:34:53 > 0:34:57As with all ex-mining areas, you would need to do a survey
0:34:57 > 0:35:01to find out if the property could be subject to subsidence.
0:35:01 > 0:35:04So, with those cracks and the run down state of the place,
0:35:04 > 0:35:07I'm looking for something to lift my spirits.
0:35:07 > 0:35:10I do hope the garden isn't a bricked over backyard.
0:35:12 > 0:35:15Well, at the rear of the property, you really do get a sense
0:35:15 > 0:35:17of the fairly run down nature of the house,
0:35:17 > 0:35:21although there are a couple of useful places for storage and an outdoor loo.
0:35:21 > 0:35:26But the great surprise is you come out here and look at this.
0:35:26 > 0:35:28An absolutely massive garden.
0:35:28 > 0:35:31What a fantastic find. Phew!
0:35:32 > 0:35:37Well, the vegetation may be rampant but just look at the size.
0:35:37 > 0:35:41All that potential and at that £35,000 guide price,
0:35:41 > 0:35:45this cracking little house makes a very attractive proposition.
0:35:46 > 0:35:48It's been empty for a number of years
0:35:48 > 0:35:51so time to find out more about the background story
0:35:51 > 0:35:55to this two-bedroom semi-detached house.
0:35:56 > 0:35:59There was a plan many years ago, 25 to 30 years ago,
0:35:59 > 0:36:03to put a relief road through Heanor which would run along Whysall Street
0:36:03 > 0:36:06but now they've decided not to put the relief road through
0:36:06 > 0:36:10hence the county council are selling the properties off.
0:36:10 > 0:36:13This plan that was dropped has led to this place being neglected
0:36:13 > 0:36:16so what's the best way forward to get it looking its best?
0:36:16 > 0:36:19I don't think I'd look at changing the layout too much.
0:36:19 > 0:36:21I'd refit the kitchen, refit the bathroom,
0:36:21 > 0:36:24put as many original features back in as I could
0:36:24 > 0:36:27and make a nice feature of the garden because it's a very good size.
0:36:27 > 0:36:31If you spent £10,000 to £15,000 on a property like this,
0:36:31 > 0:36:34you ought to be able to get it in some reasonable kind of order.
0:36:34 > 0:36:39The garden is a great asset so once that and the house are totally spruced up,
0:36:39 > 0:36:43what sort of returns could the new owners expect, first on resale?
0:36:43 > 0:36:47Once renovated, it all depends on the quality of finish
0:36:47 > 0:36:49and exactly how good a job they make,
0:36:49 > 0:36:53but I would expect somewhere in the region of £80,000.
0:36:53 > 0:36:56What rental income could the house earn?
0:36:56 > 0:37:03If I put this on the rental market I would expect to achieve around £450 to £425 per calendar month.
0:37:04 > 0:37:06It's a substantial house.
0:37:06 > 0:37:10A few structural things to check out but, with a bit of effort, I think
0:37:10 > 0:37:13it could be a good place to live or deliver a good rental yield.
0:37:13 > 0:37:16Let's see who fancied it when it went under the hammer.
0:37:19 > 0:37:21Lot 31.
0:37:21 > 0:37:24Start me on this at the guide at 35, will you?
0:37:24 > 0:37:2735,000? 35? 34?
0:37:27 > 0:37:3134? Thank you. £34,000 opening bid.
0:37:31 > 0:37:33At £34,000.
0:37:33 > 0:37:3635? 35. 36?
0:37:36 > 0:37:4237. 38. 39. 39, the bids are yours.
0:37:42 > 0:37:4440, sir? 40,000.
0:37:44 > 0:37:5041. 42. 43. 44. 44,000.
0:37:50 > 0:37:54The lot had attracted several interested buyers.
0:37:54 > 0:37:57We rejoin the auction when the bidding reaches £52,000.
0:37:57 > 0:37:5952,000.
0:37:59 > 0:38:0352,500. 53.
0:38:03 > 0:38:0553,500.
0:38:05 > 0:38:0854? 54.
0:38:08 > 0:38:12500? 54,500. 55?
0:38:12 > 0:38:1455,000.
0:38:14 > 0:38:17At £55,000.
0:38:17 > 0:38:2155,500. He's back in. At 55,500. It's against you, madam.
0:38:21 > 0:38:25At £55,500. 56, quickly?
0:38:25 > 0:38:28At 55,500, going once.
0:38:28 > 0:38:32Going twice. Third time. All done.
0:38:32 > 0:38:35Yours, sir. £55,500. Thank you.
0:38:35 > 0:38:40The successful bid of £55,500 in that tense auction was made by Paul,
0:38:40 > 0:38:44supported by his brother Luke and dad John.
0:38:46 > 0:38:50Paul has taken on this house despite the possible problems involved.
0:38:50 > 0:38:53However, he's no stranger to risk-taking
0:38:53 > 0:38:56after a career in the military ranging from intelligence
0:38:56 > 0:38:59and the artillery to working with NATO.
0:38:59 > 0:39:01I met him and his brother Luke
0:39:01 > 0:39:04to find out what strategy they had for this place.
0:39:04 > 0:39:08- Luke, Paul, good to meet you both. - Nice to meet you.- Congratulations.
0:39:08 > 0:39:10Tell me why you wanted to buy this place.
0:39:10 > 0:39:14I've been looking for an investment property for quite some time now.
0:39:14 > 0:39:16I've had my brother and my dad looking.
0:39:16 > 0:39:19I've been living in Afghanistan for the last three years.
0:39:19 > 0:39:23- Afghanistan?- Work.- Right.
0:39:23 > 0:39:26I've just got back and I'm taking a break now so I thought I would
0:39:26 > 0:39:29invest a bit of money in property and do it up and rent it or sell it.
0:39:29 > 0:39:32What kind of work were you doing in Afghanistan?
0:39:32 > 0:39:36- I was working as a risk management consultant for NATO.- Wow.
0:39:36 > 0:39:40- That sounds pretty interesting. - It certainly is.
0:39:40 > 0:39:43And what prompted the move into investment property?
0:39:43 > 0:39:47It's something I've always wanted to dabble in but never had the money.
0:39:47 > 0:39:52Obviously, living in Afghanistan, there's not much to spend money on so I've saved quite a bit
0:39:52 > 0:39:55and thought I would buy something and give it a try.
0:39:55 > 0:39:58- Right. Luke, you and your dad were drafted in.- Yes.
0:39:58 > 0:40:01Did you literally search the house out?
0:40:01 > 0:40:06Yeah, we looked around about ten or 12 in total at a couple of different auctions
0:40:06 > 0:40:09but this one we thought was the best buy.
0:40:09 > 0:40:11What was it that you liked about this one?
0:40:11 > 0:40:13Its size, the garden,
0:40:13 > 0:40:18with it being double-fronted, it's a good-sized property.
0:40:18 > 0:40:20That's why we thought it was a good price.
0:40:20 > 0:40:24And the state of it inside, it's fairly run down, with a few issues here and there.
0:40:24 > 0:40:27Not really bothered because we are going to rip it all out.
0:40:27 > 0:40:30We weren't really bothered about that.
0:40:30 > 0:40:32The lads are currently doing up Paul's house
0:40:32 > 0:40:36and have the skills needed to do this one up from top to bottom.
0:40:36 > 0:40:41From a new kitchen, bathroom and plasterwork to the whole lot.
0:40:41 > 0:40:43A total overhaul.
0:40:43 > 0:40:46But are they concerned about those cracks?
0:40:47 > 0:40:50Not really. This area is renowned for mining
0:40:50 > 0:40:55so you probably won't find any houses around here without the odd crack here and there
0:40:55 > 0:41:01but there's nothing since the '50s, no movement reported on the survey, so not too concerned about that.
0:41:01 > 0:41:04OK, internal layout changes at all?
0:41:04 > 0:41:07I don't think there's any required really. It's quite big.
0:41:07 > 0:41:11The kitchen's a pretty nice size, the other rooms are a good size.
0:41:11 > 0:41:14- Maybe change them windows to patio doors.- Yeah.
0:41:14 > 0:41:19Thoughts about putting it back to three beds and making the bathroom slightly smaller or not?
0:41:19 > 0:41:23Not quite sure whether the margin is worth doing that.
0:41:23 > 0:41:27It depends on what price we get for the difference between the two
0:41:27 > 0:41:29and three-bedroom and the difference in budget
0:41:29 > 0:41:32so we'll get that from the estate agent - a bit of advice.
0:41:32 > 0:41:35So a new layout could be on the cards,
0:41:35 > 0:41:39depending on the returns possible on a two or three-bedroomed house.
0:41:39 > 0:41:42They have a budget of £10,000
0:41:42 > 0:41:46plus a contingency of £5,000 for any unexpected problems
0:41:46 > 0:41:49and a two to three-month timescale.
0:41:49 > 0:41:53Although Paul is hoping property development will help his finances,
0:41:53 > 0:41:57it seems he can't get that military background out of his system.
0:41:57 > 0:42:00In my time off since coming back from Afghanistan, I've been running boot camps
0:42:00 > 0:42:04- as a fitness instructor in the military.- Oh, wow.
0:42:04 > 0:42:09Up in Scotland, we get girls to pay to come and get thrashed around by me
0:42:09 > 0:42:12and made to cry and do press-ups and things.
0:42:12 > 0:42:17- Is it popular?- They're quite happy with the results by the end.- OK.
0:42:17 > 0:42:21And it's a weight loss and health gain thing?
0:42:21 > 0:42:23Yeah, but it's more mental.
0:42:23 > 0:42:28You get some through things that they never thought they could do so we push them quite hard.
0:42:28 > 0:42:32We've got them for seven days and they do things they would never think possible.
0:42:32 > 0:42:35- You shout at them and are generally horrible.- Absolutely, yes.
0:42:35 > 0:42:38- Do you enjoy that?- I do, I love it, it's absolutely brilliant.
0:42:38 > 0:42:41I'm basically working on a really nice estate in Scotland
0:42:41 > 0:42:45with the hills and the beach and a seal colony down the bottom
0:42:45 > 0:42:48so we take the girls running out on the beach and the dunes and it's really nice.
0:42:48 > 0:42:50- Wow. - You can't get a better job really.
0:42:50 > 0:42:53I'd rather do that full-time, I think.
0:42:53 > 0:42:57- But this pays the wages in some ways.- Hopefully it will do, yes.
0:42:57 > 0:42:59Congratulations to both of you.
0:42:59 > 0:43:02Good luck with it and I look forward to seeing how you get on.
0:43:03 > 0:43:06How will brothers Luke and Paul get on sorting this place out?
0:43:06 > 0:43:09A few issues here and there and they are doing the right thing
0:43:09 > 0:43:12which is getting advice in terms of how much it's going to cost
0:43:12 > 0:43:16and how much they will get back if they did some of those renovations.
0:43:16 > 0:43:19What will they decide to do? You can find out later in the show.
0:43:21 > 0:43:24It's always easy putting things off until tomorrow,
0:43:24 > 0:43:28but time is money and delays can be expensive.
0:43:28 > 0:43:30Have our buyers been busy
0:43:30 > 0:43:32or have they let the grass grow under their feet?
0:43:32 > 0:43:34Time to find out.
0:43:36 > 0:43:39Back now to Morecambe in Lancashire and this six-bedroom...
0:43:39 > 0:43:43yes, six-bedroom mid-terrace with lower ground floor.
0:43:43 > 0:43:46It was in a pretty sorry state from bottom to top.
0:43:46 > 0:43:49Mike, a ceramic tiler from Manchester,
0:43:49 > 0:43:52bought it at auction for £25,000.
0:43:52 > 0:43:56But hands-on Mike wasn't fazed by the job ahead.
0:43:56 > 0:43:59He had a very tight six-month timescale
0:43:59 > 0:44:05and an even tighter budget of around £10,000 to do this up and sell on.
0:44:05 > 0:44:11However, he did fail to follow our golden rule for buying property at auction.
0:44:11 > 0:44:14- I bought it at the auction without seeing it.- Why?
0:44:14 > 0:44:17I just wanted to plunge in and get a house and I ended up with this.
0:44:17 > 0:44:22- You know you could have got yourself into all sorts of trouble, don't you?- Yes.
0:44:24 > 0:44:2713 months after our first visit, we are back to see if Mike
0:44:27 > 0:44:31has spent his money wisely and improved the outlook for this Morecambe property.
0:44:31 > 0:44:34# Bring me sunshine
0:44:34 > 0:44:38# In your smile
0:44:38 > 0:44:41# Bring me laughter
0:44:41 > 0:44:43# All the while
0:44:43 > 0:44:47# Let your arms be as warm
0:44:47 > 0:44:50# As the sun from up above
0:44:50 > 0:44:53# Bring me fun, bring me sunshine
0:44:53 > 0:44:56# Bring me love... #
0:44:56 > 0:45:01Well done, Mike. Things are really looking up for this mid-terrace.
0:45:02 > 0:45:06While there is still a bit to do on the lower ground floor,
0:45:06 > 0:45:09it's clear that an awful lot of work has gone on here.
0:45:09 > 0:45:12To start with, we had to get rid of all the rubbish.
0:45:12 > 0:45:15The beds and the couches. There was loads.
0:45:15 > 0:45:19It took a good few skips, about 17, to get shot of it all.
0:45:19 > 0:45:22I got rid of that and then I started ripping all the plaster off.
0:45:22 > 0:45:25So, basically, it was everything took out
0:45:25 > 0:45:28and then start putting it back together.
0:45:29 > 0:45:32So, from the top, the roof has been overhauled
0:45:32 > 0:45:36and the three bedrooms on the top floor have been made habitable.
0:45:36 > 0:45:40There are now two good-sized bedrooms on the first floor.
0:45:40 > 0:45:41A loo.
0:45:41 > 0:45:45And Mike has cleverly knocked together a small bedroom and the old bathroom
0:45:45 > 0:45:49to create one massive family bathroom.
0:45:49 > 0:45:51It made sense to make the bathroom bigger.
0:45:51 > 0:45:56I didn't think the bathroom would be that bigger. It looked a bit lost.
0:45:56 > 0:46:00But it's better than that room being there because that was far too small.
0:46:03 > 0:46:06The ground floor has been given a new lease of life too.
0:46:06 > 0:46:08The new kitchen looks fabulous
0:46:08 > 0:46:12and knocking together the two reception rooms has worked really well.
0:46:12 > 0:46:15You might even call it a great idea.
0:46:16 > 0:46:20The fireplace looks all right in here. It needed a bit of repair.
0:46:20 > 0:46:23I just thought it looked good and it was an original feature
0:46:23 > 0:46:28so I decided to keep that - just took it off and re-sprayed it,
0:46:28 > 0:46:30and put it back and it works now.
0:46:30 > 0:46:33You get some logs in there and it's all right.
0:46:33 > 0:46:37But before you get too cosy in front of the fire, there's still a bit to do, Mike.
0:46:37 > 0:46:41At the back, it's good to see that the greenery has gone
0:46:41 > 0:46:44but there's still a dividing wall to be built out there.
0:46:47 > 0:46:51As for the lower ground floor, this has had to be tanked.
0:46:51 > 0:46:54It all needs a bit more time to dry out properly
0:46:54 > 0:46:56and then Mike can finish it off.
0:46:56 > 0:46:59He's going to leave this floor as something of a bank canvas
0:46:59 > 0:47:03but there are three good-sized rooms down here plus scope
0:47:03 > 0:47:07for a utility room and shower room, so plenty of options.
0:47:07 > 0:47:13All this work has blown Mike's schedule from the original tight six months to one year,
0:47:13 > 0:47:17but was it done for that wildly optimistic budget of 10,000?
0:47:19 > 0:47:2312 months down the line, it's about 32,000, now.
0:47:23 > 0:47:29I think it might finish at 35. That's what it is. That's what it's took.
0:47:32 > 0:47:38A spend of 35,000 will see Mike's total outlay here rise to £60,000.
0:47:38 > 0:47:42We asked two local property experts to cast their eyes over the renovation.
0:47:42 > 0:47:46First up, the estate agent who saw the place before the work started.
0:47:49 > 0:47:52I think the owner of this property has done a fantastic job
0:47:52 > 0:47:53with the refurbishment.
0:47:53 > 0:47:59Very impressed with the overall condition compared to what it was prior to him buying the property.
0:47:59 > 0:48:03The kitchen and the bathroom, absolutely fantastic.
0:48:03 > 0:48:06So I'm really, really happy with what has been done.
0:48:06 > 0:48:08The layout now works much better.
0:48:08 > 0:48:12It's made the bathroom a lot larger and also five bedrooms,
0:48:12 > 0:48:16to be fair, is perfectly adequate for this type of market.
0:48:16 > 0:48:18So far, so good.
0:48:18 > 0:48:20Now, Mike would like to sell the property on
0:48:20 > 0:48:24so what might it fetch if put up for sale?
0:48:26 > 0:48:32I would be recommending this house would go on the market for £75,000.
0:48:32 > 0:48:35Based upon recent comparable property sales,
0:48:35 > 0:48:37I was market this property at £85,000.
0:48:37 > 0:48:40Obviously, I would want more.
0:48:40 > 0:48:43But there is another option. I can rent it.
0:48:44 > 0:48:46It's a tricky one.
0:48:46 > 0:48:53Those resale valuations would mean a pre-tax and other expenses profit of between 15 and 25,000,
0:48:53 > 0:48:56but Mike has had people asking about renting the mid-terrace
0:48:56 > 0:49:00so what do the experts make of that option?
0:49:02 > 0:49:04If we were to rent the house out,
0:49:04 > 0:49:10we would expect to rent the house for £550 per calendar month.
0:49:10 > 0:49:13If I was putting this property out to rent,
0:49:13 > 0:49:18I've expect it to achieve in the region of £595 per calendar month.
0:49:18 > 0:49:21A family wanted to move in when I completed it
0:49:21 > 0:49:23and they offered me £700 a month.
0:49:23 > 0:49:30£700 a month would mean a yield of 14%, which is very good indeed.
0:49:30 > 0:49:34It's clearly been a lot of hard work so what's next for Mike?
0:49:34 > 0:49:37Another auction?
0:49:37 > 0:49:41It's back to work to pay off the money I've used for this.
0:49:41 > 0:49:43But I would like to do it again, definitely.
0:49:43 > 0:49:48He is certainly a trooper when it comes to property development
0:49:48 > 0:49:50but next time, please view before you take the plunge!
0:49:56 > 0:49:59Back now to the market town of Heanor,
0:49:59 > 0:50:03sandwiched between Derby and Nottingham, where earlier,
0:50:03 > 0:50:08we saw this two-bed double-fronted semi sold at auction for £55,500.
0:50:08 > 0:50:13It was bought as an investment by former military man Paul, on the left, here.
0:50:13 > 0:50:19Along with brother Luke, he planned to turn this 'orrible little place into a unit to be proud of.
0:50:21 > 0:50:24But first, it appears you can take the man out of the Army
0:50:24 > 0:50:26but not the Army out of the man.
0:50:26 > 0:50:31I've been doing the odd running boot camp, I'm a fitness instructor in the military.
0:50:31 > 0:50:35- Oh, wow.- So up in Scotland we get girls who basically pay
0:50:35 > 0:50:40to get thrashed around by me and made to cry and do press ups and things.
0:50:40 > 0:50:46- Is it popular?- Yeah, they are quite happy with the results by the end.
0:50:46 > 0:50:49Paul may be able to whip his clients into shape
0:50:49 > 0:50:54but did he and Luke manage the same thing with this run down place?
0:50:54 > 0:51:00There were several cracks and the rooms were grubby and shabby, needing a complete overhaul.
0:51:00 > 0:51:03But with a £10,000 budget and a two to three-month timescale,
0:51:03 > 0:51:05the lads were ready to do battle.
0:51:07 > 0:51:12Now it's nine weeks later and the house certainly looks fresher,
0:51:12 > 0:51:14with new double-glazed windows.
0:51:14 > 0:51:19Inside, the first reception room has been replastered and redecorated
0:51:19 > 0:51:26and the same treatment has been given to the second reception room, with a coal effect fire added.
0:51:27 > 0:51:29So far, so good.
0:51:29 > 0:51:32How did the brothers fare with that run-down kitchen?
0:51:35 > 0:51:39New units and tiling have definitely improved this area,
0:51:39 > 0:51:44but what really sets it off beautifully are the new patio doors in place of the bay windows.
0:51:46 > 0:51:50They now give access to the garden, which has been cleared.
0:51:51 > 0:51:54So for the ground floor, it has been a promising start.
0:51:55 > 0:51:58Complete transformation from the absolute mess
0:51:58 > 0:52:01we came into in the first place to all the nice, clean,
0:52:01 > 0:52:06smells nice and fresh and looks actually usable so it's nice to see.
0:52:06 > 0:52:10It's also good to see that the stairwell has been made into a brighter space
0:52:10 > 0:52:14but the real improvement here has been with the change of layout.
0:52:17 > 0:52:21The large bathroom has been turned into a decent sized bedroom.
0:52:24 > 0:52:28While the larger of the original two bedrooms has been split into two,
0:52:28 > 0:52:34to create a bedroom at the front and at the rear, a new family bathroom.
0:52:35 > 0:52:38The other original bedroom has retained its shape
0:52:38 > 0:52:42and been made over in a similar style to the other rooms.
0:52:42 > 0:52:44So now this former two-bedroomed house
0:52:44 > 0:52:48has been rejigged to become a far more sensible three-bed.
0:52:48 > 0:52:53Paul reckons most of the credit for making this happen was down to brother, Luke.
0:52:53 > 0:52:56I'm giving him quite a bit of credit. He's done most of the work.
0:52:56 > 0:52:59I've been away working for quite a lot of the time so he has run with
0:52:59 > 0:53:03the project management side of things and done a very, very good job.
0:53:03 > 0:53:07He's earned himself a good 50% share of the profits, without a doubt, on that one.
0:53:07 > 0:53:09It's well deserved.
0:53:09 > 0:53:11That's good for Luke.
0:53:11 > 0:53:14He's taken on the main burden of getting the house fixed up.
0:53:14 > 0:53:18There were no real problems but the sections of wall with those cracks
0:53:18 > 0:53:21had to be rebuilt and are now fixed up.
0:53:21 > 0:53:26But being a project manager has meant putting in the hours.
0:53:26 > 0:53:28It's been a mad rush last couple of weeks,
0:53:28 > 0:53:32I think I've done 100 hours for a good couple of weeks
0:53:32 > 0:53:34so it has been long days and no sleep
0:53:34 > 0:53:36so I'm ready for a couple of weeks off now.
0:53:36 > 0:53:39But the end results are definitely worth it, aren't they?
0:53:39 > 0:53:41Absolutely. Without a doubt.
0:53:41 > 0:53:46Well, Luke may have put a lot of time into this renovation but that wasn't his only input.
0:53:46 > 0:53:51I've put my foot through the kitchen ceiling two days before the deadline,
0:53:51 > 0:53:54rushing about and getting ready to watch a football match.
0:53:54 > 0:53:57So that was a little bit annoying.
0:53:57 > 0:54:00I had to take a little bit of stick for that.
0:54:00 > 0:54:02With a little help from family and friends,
0:54:02 > 0:54:04contact in the building trade, and of course, Paul,
0:54:04 > 0:54:08Luke has turned the project round in nine weeks.
0:54:08 > 0:54:11One of the bricklayers who helped on the job is planning
0:54:11 > 0:54:17to move into soon as a tenant so that's a vote of confidence for the quality of the renovation.
0:54:17 > 0:54:19But with the house we plastered throughout,
0:54:19 > 0:54:22rewired and with new gas central heating installed,
0:54:22 > 0:54:25did the brothers have confidence in their budget?
0:54:25 > 0:54:31We originally planned £10,000 with a contingency of up to 15, if anything goes wrong.
0:54:31 > 0:54:35However, we've managed to get it down to £9,300, or just under.
0:54:35 > 0:54:38So again, very, very pleased with that.
0:54:41 > 0:54:45Adding that £9,300 to their purchase price of £55,500
0:54:45 > 0:54:48makes their total outlay just under £65,000.
0:54:48 > 0:54:53Time to find out what two local estate agents think of Paul's investment.
0:54:53 > 0:54:56My overall impression of the property is very good.
0:54:56 > 0:55:00They've made a nice renovation job, put a nice modern fitted kitchen in,
0:55:00 > 0:55:04modern bathroom, and it is neutrally decorated throughout. It looks great.
0:55:04 > 0:55:06My overall opinion of the property
0:55:06 > 0:55:09is that it's very well presented and well decorated.
0:55:09 > 0:55:13I think the fact they've chosen to make it into a three-bedroom
0:55:13 > 0:55:16from two is a good idea because it appeals more to a family
0:55:16 > 0:55:19and the bedroom sizes are very well-proportioned.
0:55:19 > 0:55:22So the agents like the new layout.
0:55:22 > 0:55:25But with a tenant due in, has Paul got the best return
0:55:25 > 0:55:28from his investment of just under £65,000?
0:55:28 > 0:55:31What sort of rental figures could he achieve?
0:55:31 > 0:55:33If I was putting this property on the market for rental,
0:55:33 > 0:55:36I would expect it to achieve in the region of £400 per calendar month.
0:55:36 > 0:55:41I would expect to achieve between £450 and £500 per calendar month.
0:55:41 > 0:55:44That's kind of what we expected.
0:55:44 > 0:55:48We've actually achieved £450 a month from our prospective tenant
0:55:48 > 0:55:52so that's pretty good. I'm quite happy with that.
0:55:52 > 0:55:57That rental income would give Paul a healthy annual yield of just over 8%
0:55:57 > 0:56:00and the estate agents reckon it could sell for up to £90,000.
0:56:00 > 0:56:07That could mean a profit of around 25,000, minus the usual tax and expenses.
0:56:07 > 0:56:10So with the success of the venture, it looks like Paul and Luke
0:56:10 > 0:56:12could be quids in on this new investment.
0:56:12 > 0:56:14But like any military man,
0:56:14 > 0:56:18it seems as though Paul is already eyeing up his next campaign.
0:56:19 > 0:56:23Next-door is empty so we're kind of looking at prospectively buying that
0:56:23 > 0:56:27and doing the same thing again because obviously, we know the area.
0:56:27 > 0:56:30We've got quite a bit of garden space at the bottom
0:56:30 > 0:56:34so we are looking at maybe building plots for a couple of houses on that.
0:56:34 > 0:56:38And of course, he won't expect Luke to become demob happy.
0:56:38 > 0:56:41It's nice to know I can have a couple of weeks off
0:56:41 > 0:56:45after the last couple of months, I think I deserve a couple of weeks at least.
0:56:45 > 0:56:47He's not doing bad.
0:56:51 > 0:56:54Join us next time when we'll be visiting more intriguing stories
0:56:54 > 0:56:58- on Homes Under the Hammer. - No two stories are ever the same.
0:56:58 > 0:57:01- Will it be flats, maisonettes, plots of land, who knows?- See you soon.
0:57:01 > 0:57:03- Bye-bye.- Goodbye.
0:57:22 > 0:57:26Subtitles by Red Bee Media Ltd