0:00:00 > 0:00:03If you've ever wondered about going to an auction
0:00:03 > 0:00:06but you'd not ever had the nerve, perhaps now is the time
0:00:06 > 0:00:09to take the plunge because there's so much variety in the catalogues.
0:00:09 > 0:00:11There are and there's literally hundreds of properties
0:00:11 > 0:00:15being sold at auction every month.
0:00:15 > 0:00:17So, head down to your local one and check out the action.
0:00:43 > 0:00:46People often ask us how to behave in an auction room.
0:00:46 > 0:00:49There are no hard and fast rules but a couple of our tips are,
0:00:49 > 0:00:52make sure you sit where you can be seen by the auctioneer
0:00:52 > 0:00:55and set yourself a price limit and stick to it!
0:00:55 > 0:00:58Let's see what our buyers bid for on today's programme.
0:01:00 > 0:01:04First up, in Derbyshire, the future is mapped out for one couple.
0:01:04 > 0:01:07- The idea is that this is home? - I don't want to move ever again.
0:01:07 > 0:01:09- Ever again?- I hate moving house.
0:01:10 > 0:01:15In Belfast, the future is looking a little uncertain. Your budget?
0:01:15 > 0:01:17HE SIGHS
0:01:17 > 0:01:18Now you're looking down!
0:01:20 > 0:01:24And in Lynemouth, Dave takes it all in his stride.
0:01:24 > 0:01:26How was the auction for you?
0:01:26 > 0:01:29- Quite calming actually, I found it enjoyable.- Calming?!
0:01:31 > 0:01:33All of these properties have been sold at auction.
0:01:33 > 0:01:36We'll find out who bought them and what they paid for them
0:01:36 > 0:01:38when they went under the hammer.
0:01:38 > 0:01:40Hammers down, it's yours.
0:01:49 > 0:01:53I am now in the heart of South Derbyshire.
0:01:53 > 0:01:57This picturesque and historic village location, which started life
0:01:57 > 0:02:01centuries ago as a small inland port, has undergone a fair bit
0:02:01 > 0:02:03of investment recently.
0:02:03 > 0:02:07It has proved particularly popular with the narrow boat community.
0:02:08 > 0:02:10One of the really beautiful by-products
0:02:10 > 0:02:12of the Industrial Revolution,
0:02:12 > 0:02:16especially here in the Midlands, was the development of the canal system.
0:02:16 > 0:02:20This is the Trent and Mersey, one of the most famous.
0:02:20 > 0:02:25I'm in Willington, equally distanced between Burton-on-Trent and Derby,
0:02:25 > 0:02:28a great little spot and with this on your doorstep, definitely!
0:02:31 > 0:02:35So, if you're looking for a semi-rural village location
0:02:35 > 0:02:39with plenty of local amenities and handy commuter links to the cities of
0:02:39 > 0:02:44Derby and Birmingham, then Willington could be the perfect choice for you.
0:02:44 > 0:02:49Properties here are sure to attract interest at the local auctions.
0:02:49 > 0:02:51Today's property is a bungalow and I am a great fan
0:02:51 > 0:02:53of this particular house style,
0:02:53 > 0:02:57although they've always had an unfortunate image.
0:02:57 > 0:03:00A recent report concluded that in 2012,
0:03:00 > 0:03:04the number of new bungalows built dropped to an all-time low,
0:03:04 > 0:03:08just 1,700 in one year, that's 2% of the new housing market,
0:03:08 > 0:03:13which means bungalows are becoming increasingly rare.
0:03:13 > 0:03:15Sounds like a good one.
0:03:15 > 0:03:19£125,000 plus was the guide price, let's take a look.
0:03:19 > 0:03:23# Don't, don't you want me? #
0:03:23 > 0:03:27So, what particular layout have we got with this bungalow?
0:03:27 > 0:03:29Well, a nice little entrance area there
0:03:29 > 0:03:33and then through into your main porch and straightaway,
0:03:33 > 0:03:37an indication of the style and age of this building!
0:03:37 > 0:03:42Wow, do you remember these? I love that noise.
0:03:44 > 0:03:45Buy it for the phone, I say!
0:03:45 > 0:03:50Basically, your bedroom there, the rear end of the living room there.
0:03:50 > 0:03:53The second bedroom there. Bathroom here.
0:03:53 > 0:03:57I mean, it is all of that sort of era, isn't it?
0:03:57 > 0:04:02Interesting colour combinations going on. The carpet? Wow!
0:04:03 > 0:04:07But, very spacious is the first thing I'm seeing, especially in here.
0:04:07 > 0:04:09Once you come to the rear of the property,
0:04:09 > 0:04:12it really starts to open up, because you've got this kitchen
0:04:12 > 0:04:15which is a nice size, lots of light pouring in through the windows.
0:04:15 > 0:04:19Again, it needs completely redoing but it's nice.
0:04:19 > 0:04:21Then what I guess is kind of an extension on the back
0:04:21 > 0:04:25of the property because once this was the rear window,
0:04:25 > 0:04:31but it has created an extension, this really nice-sized dining area,
0:04:31 > 0:04:35which you can access also from the original living room by these
0:04:35 > 0:04:37sliding patio doors.
0:04:37 > 0:04:42That brings you neatly round in a circle to the living room.
0:04:42 > 0:04:45For a bungalow, it feels very spacious.
0:04:47 > 0:04:51This house was obviously done up to the height of fashion
0:04:51 > 0:04:55around 40 years ago and has had very little done since.
0:04:55 > 0:04:57Hello archways!
0:04:57 > 0:05:02# Underneath the arches
0:05:02 > 0:05:06# I dream my dreams away... #
0:05:07 > 0:05:11If you're a fan of that distinctive retro style, then bingo!
0:05:11 > 0:05:14If not, you'd probably rip it all out
0:05:14 > 0:05:17and you'd have a blank canvas on which to start afresh.
0:05:17 > 0:05:18Let's head outside.
0:05:20 > 0:05:23One thing which some people whinge about when it comes to bungalows
0:05:23 > 0:05:26is that you are limited with space, obviously you only have one floor.
0:05:26 > 0:05:30In this case, this bungalow, if it is lacking on the inside,
0:05:30 > 0:05:32it definitely makes up for it outside,
0:05:32 > 0:05:35because not only have you got a garage at the end there
0:05:35 > 0:05:42and then this car port area, there's a workshop there and it goes on.
0:05:42 > 0:05:44You've got this summer house kind of thing there
0:05:44 > 0:05:49and then to cap it all, a really nice sized garden.
0:05:49 > 0:05:52So, there you go, nothing to complain about there.
0:05:53 > 0:05:55# I can't complain! #
0:05:55 > 0:05:57I'm definitely not complaining.
0:05:57 > 0:06:01This brilliant bungalow just keeps getting better.
0:06:04 > 0:06:07The functional extra floor space really adds value to the property
0:06:07 > 0:06:10and yes, it does need modernising throughout,
0:06:10 > 0:06:15but it's an awful lot of property for that guide price of £125,000 plus.
0:06:17 > 0:06:21We asked a local property expert along to discuss the options.
0:06:22 > 0:06:24What you would do with this property
0:06:24 > 0:06:26depends on what the incoming buyer wants and needs.
0:06:26 > 0:06:28Originally, three bedrooms.
0:06:28 > 0:06:30If you needed three bedrooms for a family, for example,
0:06:30 > 0:06:33then you'd probably reinstate the original third bedroom.
0:06:33 > 0:06:37If it was just a couple, you might look at possibly an en-suite.
0:06:37 > 0:06:39You've got an additional lounge across the back
0:06:39 > 0:06:41so you don't need all that space there.
0:06:41 > 0:06:45I would look to make the main room across the back into a big lounge
0:06:45 > 0:06:47and possibly put either a bedroom or en suite
0:06:47 > 0:06:51into where the original third bedroom was.
0:06:51 > 0:06:55We are agreed, lots of fantastic and flexible space.
0:06:55 > 0:06:57What about value potential?
0:06:57 > 0:07:00If you were just renovating the property as it stands without
0:07:00 > 0:07:02any structural alteration,
0:07:02 > 0:07:07I would expect it to achieve in the region of £160,00 to £165,000.
0:07:07 > 0:07:10If you were to make this into a really nice three-bedroomed bungalow
0:07:10 > 0:07:13and make the living kitchen across the back, or indeed,
0:07:13 > 0:07:17make it into a two-bedroomed property with an en-suite,
0:07:17 > 0:07:21I would expect it to make in the region of £170 to £175,000.
0:07:21 > 0:07:23What about the rental market?
0:07:23 > 0:07:26If you were to renovate the property as it is with just a simple
0:07:26 > 0:07:28renovation all the way through,
0:07:28 > 0:07:32I would expect it to achieve in the region of £600 per calendar month.
0:07:32 > 0:07:34If you were to renovate the property
0:07:34 > 0:07:36and make it into either a three-bedroomed bungalow
0:07:36 > 0:07:38or two bedrooms with an en-suite,
0:07:38 > 0:07:40I'd expect it to achieve nearer £700 per calendar month.
0:07:40 > 0:07:43It certainly needs a little bit of bringing up-to-date
0:07:43 > 0:07:46but intrinsically, this is a great little property.
0:07:46 > 0:07:48Let's see who agreed when it went under the hammer.
0:07:51 > 0:07:55Start me where you will with this one. Let's say 130 for it.
0:07:55 > 0:07:58130? 126?
0:07:58 > 0:08:00We'll start it at 120 if you like.
0:08:00 > 0:08:04£120,000 for it. 120, thank you.
0:08:04 > 0:08:08121? 121. 122.
0:08:08 > 0:08:11123. 124.
0:08:11 > 0:08:16125. And six. 127.
0:08:16 > 0:08:18128 is bid.
0:08:18 > 0:08:21129. 130.
0:08:21 > 0:08:23131.
0:08:23 > 0:08:26132. 132.
0:08:26 > 0:08:31133. 134. 135?
0:08:31 > 0:08:38At £134,000, once, £134,000 twice.
0:08:38 > 0:08:42Third and last chance, any higher bid on it? It's going to sell.
0:08:42 > 0:08:43Hammer's down, it's yours.
0:08:46 > 0:08:52# I feel good, I knew that I would now! #
0:08:53 > 0:08:56The delighted young couple with their successful bid
0:08:56 > 0:09:00of £134,000 are Adam and Carrie.
0:09:01 > 0:09:05They both live and work in the area and know it well.
0:09:05 > 0:09:08Adam is an engineer for an aeronautics division
0:09:08 > 0:09:12while Carrie does the books for her dad's company as well as working
0:09:12 > 0:09:15in her aunt's cafe and manages to find the time
0:09:15 > 0:09:17to umpire netball matches.
0:09:19 > 0:09:23It's their first property together and I can't wait to find out more.
0:09:25 > 0:09:29- Carrie, Adam, great to meet you both. Congratulations!- Thank you.
0:09:29 > 0:09:32- You looked pretty excited there? - Yeah, we were.
0:09:32 > 0:09:35We went on the day, not really expecting to get anything.
0:09:35 > 0:09:40We had looked at these properties and then, we bid for this one.
0:09:40 > 0:09:43We liked it and we ended up getting it.
0:09:43 > 0:09:47What were you thinking at that moment when the hammer went down?
0:09:47 > 0:09:51I couldn't believe it, I was shocked. In a good way.
0:09:51 > 0:09:52Why have you bought it?
0:09:52 > 0:09:55We wanted a bigger place, in the next few years,
0:09:55 > 0:09:57there could be more of us!
0:09:57 > 0:10:00So, yeah, we wanted a bigger place.
0:10:00 > 0:10:04Is he revealing some information he shouldn't there!
0:10:04 > 0:10:08- She doesn't know that yet!- You don't think you should involve her?
0:10:09 > 0:10:11Maybe a little bit!
0:10:14 > 0:10:17The pair have known each other since their early teens,
0:10:17 > 0:10:19but have only been dating for a few months.
0:10:19 > 0:10:22They currently live in Carrie's terraced house in Derby
0:10:22 > 0:10:24but are eager to move quickly
0:10:24 > 0:10:27and are particularly pleased they've found a bungalow.
0:10:27 > 0:10:30I'm having an operation on both my knees soon
0:10:30 > 0:10:34so a bungalow is quite handy, no stairs.
0:10:34 > 0:10:37Wow, what kind of operation?
0:10:37 > 0:10:40Just to fix the ligaments in my knees
0:10:40 > 0:10:43because I've been playing netball.
0:10:43 > 0:10:47So, no stairs. And the garden is beautiful. I love the garden.
0:10:47 > 0:10:50Tell me, then, what are you going to do to the place?
0:10:50 > 0:10:54There's a few walls we would like to knock out and just basically,
0:10:54 > 0:10:58tart it up. New carpets or laminates throughout,
0:10:58 > 0:11:00and redoing the bathroom.
0:11:00 > 0:11:02And kitchen.
0:11:02 > 0:11:04We're hoping to knock through the kitchen wall
0:11:04 > 0:11:06and make it into a large kitchen diner.
0:11:06 > 0:11:08What do you think of these archways?
0:11:08 > 0:11:10For the time being, money being restricted,
0:11:10 > 0:11:15maybe leave it as it is, just paint it up, modernise it that way
0:11:15 > 0:11:20and then in the future, possibly, make it a bit less "arch-y"!
0:11:22 > 0:11:26- But the idea is, this is home?- Yes, I don't want to move ever again.
0:11:26 > 0:11:31- Ever again?- I hate moving house. I do not want to move.
0:11:31 > 0:11:38- This is it, I will die here. - Wow! How old are you again?- 26.
0:11:38 > 0:11:43Have you been approached about this idea of this being
0:11:43 > 0:11:46your final resting place?
0:11:46 > 0:11:49Yes, Carrie says, but I don't know, we'll see how things go.
0:11:49 > 0:11:53I just end up doing what I'm told probably anyway!
0:11:54 > 0:11:59Well, they are in this for the long-term, so their budget of £12,000
0:11:59 > 0:12:03for a straightforward refurbishment should suffice for the time being.
0:12:07 > 0:12:09Who is doing the work?
0:12:09 > 0:12:12We would like to do a lot ourselves and we've got a few contacts
0:12:12 > 0:12:14we know that can come in and help out.
0:12:14 > 0:12:19- My dad's in groundworks trading so he knows people.- OK.
0:12:19 > 0:12:20Mates rates!
0:12:20 > 0:12:25Yes, fingers crossed. What is the timescale?
0:12:25 > 0:12:29With Carrie having her operation, that will slow us down a bit,
0:12:29 > 0:12:30so maybe a year.
0:12:30 > 0:12:32I will be wheelchair-bound for a little while.
0:12:32 > 0:12:37It's about a four-month recovery, because they're doing both my knees.
0:12:37 > 0:12:41Carrie and Adam reckon that while this might slow them down a bit,
0:12:41 > 0:12:45they hope their family and friends might all pitch in to help.
0:12:45 > 0:12:47- Congratulations.- Thank you.
0:12:47 > 0:12:51We'll leave you to have a bit of a chat about things
0:12:51 > 0:12:53and we wish you all the very best.
0:12:53 > 0:12:55- Thank you.- Good luck with it!
0:12:56 > 0:12:58Well, there you go, you might not have expected
0:12:58 > 0:13:02a young couple like Adam and Carrie to have bought this place,
0:13:02 > 0:13:06but for lot of reasons for them, it is absolutely perfect.
0:13:06 > 0:13:09How will they get on turning this into their home?
0:13:09 > 0:13:11You can find out later in the show.
0:13:15 > 0:13:18From young couples to old cities now.
0:13:18 > 0:13:21We're crossing the Irish Sea to Belfast.
0:13:21 > 0:13:24The city's story can be told through its architecture.
0:13:24 > 0:13:26Once booming industries like linen
0:13:26 > 0:13:30and ship building created the cityscape of grand buildings,
0:13:30 > 0:13:35high cranes and the rows of terraces that housed the workers.
0:13:35 > 0:13:39With the decline of industry, people started to move out of the area
0:13:39 > 0:13:41and many of the houses fell into disrepair.
0:13:43 > 0:13:46Nowadays, the value of these terraces are on the up and up
0:13:46 > 0:13:50and people and communities are moving back into the area,
0:13:50 > 0:13:52which is just five minutes from the city centre
0:13:52 > 0:13:54with free parking to boot!
0:13:56 > 0:13:58It's just off the Shankill Road
0:13:58 > 0:14:01that I've come to see one such property.
0:14:01 > 0:14:04In amongst the terraced houses that would once have housed
0:14:04 > 0:14:07many of the industrial workers.
0:14:07 > 0:14:09Well, it seems like a bargain
0:14:09 > 0:14:15if it went for anywhere near the guide price of £22,000.
0:14:15 > 0:14:17So, what have we got today?
0:14:17 > 0:14:20It is a two-bedroom mid-terrace, it's got a back yard
0:14:20 > 0:14:22and it looks pretty much in place.
0:14:22 > 0:14:23I'm going to have a look around.
0:14:26 > 0:14:29Well, these are good sturdy homes, not the largest in size
0:14:29 > 0:14:32and one of the first things I think I would do
0:14:32 > 0:14:34is to get rid of this oversized furniture.
0:14:34 > 0:14:37It makes this room look absolutely tiny.
0:14:37 > 0:14:42Also, a lot of textured wallpaper that makes the room look dated
0:14:42 > 0:14:44so that would be quite to tough to strip off
0:14:44 > 0:14:46but I think that has to go as well.
0:14:46 > 0:14:49This is where this house gets rather interesting
0:14:49 > 0:14:55because we have a pre-kitchen before we actually get to the real kitchen.
0:14:55 > 0:14:59A nice space here with lots of units but here is the sink
0:14:59 > 0:15:00and here is the cooker.
0:15:00 > 0:15:03You've obviously got to try and sort that out
0:15:03 > 0:15:05because it's just not working.
0:15:05 > 0:15:08Then you've got this window here coming out to this lean-to.
0:15:10 > 0:15:13In an ideal world, I would love to extend over here
0:15:13 > 0:15:17and make this part of the kitchen, but I can see drainage there.
0:15:17 > 0:15:20You will have to have a manhole cover in the kitchen
0:15:20 > 0:15:23and I'm thinking about the ceiling price in this road.
0:15:23 > 0:15:26To do all that work, to knock down walls,
0:15:26 > 0:15:28you would certainly exceed that.
0:15:28 > 0:15:31That's something you've got to be careful of in a cottage like this,
0:15:31 > 0:15:33not to spend too much money.
0:15:33 > 0:15:37If this were mine, I would certainly try to work within the space
0:15:37 > 0:15:39you've got and make it work for you.
0:15:40 > 0:15:42# We can work it out
0:15:42 > 0:15:45# We can work it out
0:15:45 > 0:15:49# Think of what you're saying, you can get it wrong
0:15:49 > 0:15:51# And still think that it's all right... #
0:15:52 > 0:15:56Upstairs and the unusual layout continues.
0:15:56 > 0:16:03The bathroom is on the landing. It's an OK size but just needs updating.
0:16:03 > 0:16:07Then, above your head is a very old-fashioned washing pulley
0:16:07 > 0:16:09which I really rather like.
0:16:10 > 0:16:13Then it's onto two good sized bedrooms
0:16:13 > 0:16:16which may just need new decor and updating.
0:16:17 > 0:16:20The back leads out to an old lane which would have been
0:16:20 > 0:16:22full of washing lines in years gone by.
0:16:26 > 0:16:30This little terrace is part of the industrial history of the area,
0:16:30 > 0:16:33but can it has been modernised to fit in with today's Belfast?
0:16:35 > 0:16:40With a guide price of just £22,000, it would be interesting to find out
0:16:40 > 0:16:43what a local property expert can tell us.
0:16:43 > 0:16:46There is significant work that is required.
0:16:46 > 0:16:50There is no real kitchen to speak of which would be a high priority.
0:16:50 > 0:16:53I would be suggesting maybe be a better structure,
0:16:53 > 0:16:56a more solid structure for that kitchen extension.
0:16:56 > 0:17:01It's no bad thing to have the space and something a bit more solid.
0:17:01 > 0:17:05We are agreed then. But what about the area it's in?
0:17:05 > 0:17:07We're in an area called the Lower Shankill
0:17:07 > 0:17:11which is extremely close to Belfast city centre.
0:17:11 > 0:17:16With its location, it really is the big selling point for this house.
0:17:16 > 0:17:18Once renovation work has been carried out,
0:17:18 > 0:17:23I would be recommending a valuation of between £45,000 and £50,000.
0:17:23 > 0:17:25What about rental?
0:17:25 > 0:17:28Rental-wise, I would be putting a valuation of between £375
0:17:28 > 0:17:30and £400 per calendar month.
0:17:32 > 0:17:35I think now is a good time to snap up these terraced bargains,
0:17:35 > 0:17:38but you must be careful whatever you spend, you don't
0:17:38 > 0:17:40exceed the ceiling price here because you could
0:17:40 > 0:17:44so easily get carried away with the amount of work that needs doing.
0:17:44 > 0:17:47Let's see what happened when it went auction.
0:17:52 > 0:17:56Would someone like to get us away at the guide price of £22,000?
0:17:56 > 0:18:00Is there 22,000? We have a proxy bid of 20,000.
0:18:00 > 0:18:02Any advance on 20,000? 21.
0:18:02 > 0:18:04We have 21. Is that 22 at the back?
0:18:04 > 0:18:06We have 22 at the back of the hall.
0:18:06 > 0:18:09Any advance on 22,000? All sure?
0:18:09 > 0:18:1023.
0:18:10 > 0:18:1323 at the front, any advance on 23,000?
0:18:13 > 0:18:16Seated at the front at 23.
0:18:16 > 0:18:2024 against you, sir. 25 at the back of the hall.
0:18:20 > 0:18:2426. Selling at 26,000.
0:18:24 > 0:18:3027 sitting at the side of the room.
0:18:30 > 0:18:3228,000 we have seated.
0:18:34 > 0:18:38Selling at 28,000. 29,000 at the back.
0:18:38 > 0:18:42Any advance on £29,000?
0:18:42 > 0:18:4630,000, we have £30,000 seated.
0:18:47 > 0:18:51Can we say 31? We have 30,000 seated.
0:18:51 > 0:18:54All sure? Last call at £30,000.
0:18:54 > 0:18:5730,000 going once, 30,000 going twice.
0:18:57 > 0:18:58Sold at 30,000.
0:18:58 > 0:18:59Thank you.
0:18:59 > 0:19:04The successful bidder was Robert, sat here with his mother, Myrtle.
0:19:04 > 0:19:07The two are forming a mother and son team.
0:19:07 > 0:19:13# When you get a chance, would you please call your mother? #
0:19:13 > 0:19:16This is their first foray into property development.
0:19:16 > 0:19:20I caught up with Robert back at the property to find out more.
0:19:21 > 0:19:26- Robert, congratulations.- Thank you. - You paid £30,000 on auction day.
0:19:26 > 0:19:29- Guide price, 22,000? - We were right at our limit.
0:19:29 > 0:19:33We bid hard, there were a few people bidding for it and 30,000
0:19:33 > 0:19:37we had set as our limit so any other bids, we wouldn't have got it.
0:19:37 > 0:19:40I know your mum is involved with this project with you?
0:19:40 > 0:19:41She is indeed, yes.
0:19:41 > 0:19:44She is providing the money and I am providing the know-how.
0:19:44 > 0:19:48The money and the know-how, what a great A-team!
0:19:48 > 0:19:53# Always be kind to your mother
0:19:53 > 0:20:00# It's the greatest gift you can give! #
0:20:02 > 0:20:05Robert is being kind to Myrtle by letting her take a back-seat
0:20:05 > 0:20:09on the work so he will be doing the project managing.
0:20:10 > 0:20:13With the ups and especially the downs in the market,
0:20:13 > 0:20:17people need to think long and hard before investing money
0:20:17 > 0:20:18and taking that risk.
0:20:20 > 0:20:24- Do you see a slow recovery from the recession?- Yes, definitely.
0:20:24 > 0:20:26It has been slow and steady for the last couple of years now.
0:20:26 > 0:20:31We're hoping it'll increase and if we sit on this property
0:20:31 > 0:20:35for a short time, we will get a reasonable return.
0:20:35 > 0:20:37But would you say your ceiling price is,
0:20:37 > 0:20:39because you have to start there and work backwards?
0:20:39 > 0:20:44We were thinking at the very most, we might get close to 50.
0:20:44 > 0:20:45That might be a bit naive,
0:20:45 > 0:20:48but we're hoping for somewhere close to that mark.
0:20:48 > 0:20:50So you've got to work into that your profit
0:20:50 > 0:20:53and how much you want to spend on the property?
0:20:53 > 0:20:55Yes, to be honest, this is the first project.
0:20:55 > 0:20:58We're not setting out to make heaps of money.
0:20:58 > 0:21:01It's just to get it turned around and make a small profit
0:21:01 > 0:21:03we'll be happy with.
0:21:05 > 0:21:07A small profit should be very possible
0:21:07 > 0:21:10and I like that Robert has realistic expectations.
0:21:10 > 0:21:14However, after spending 30 grand, he has to renovate the house,
0:21:14 > 0:21:19pay fees and make a profit out of the remaining 20,000.
0:21:19 > 0:21:20He'll have to be careful.
0:21:22 > 0:21:24So, now you've got it, what do you intend doing with it?
0:21:24 > 0:21:26We've looked at quite a number of options.
0:21:26 > 0:21:30We've looked at extending the kitchen right into the back yard.
0:21:30 > 0:21:33We've looked at knocking this wall down so that we could just have
0:21:33 > 0:21:35a kitchen at the back and one big living room.
0:21:35 > 0:21:40Or else we're thinking of just doing up the kitchen here as it is.
0:21:40 > 0:21:43The rest of the house would just be cosmetic.
0:21:43 > 0:21:47So, come on, that's plan A, B, C, which one are you going to choose?
0:21:47 > 0:21:50To knock these walls down, these are all supporting walls,
0:21:50 > 0:21:53- so that could be quite costly. - That's going to be very costly.
0:21:53 > 0:21:56Also, out the back, if you do extend over the kitchen,
0:21:56 > 0:21:57you've got the drainage to consider.
0:21:57 > 0:21:59Yes, in the back yard,
0:21:59 > 0:22:04we would end up digging it all up to sink all the drainage into the yard
0:22:04 > 0:22:07and he would have to put in a new floor screed to bring it up level
0:22:07 > 0:22:08with the existing kitchen,
0:22:08 > 0:22:12so it would be a big job that would cost a lot of money.
0:22:12 > 0:22:15That would cost you at least £20,000 and then there's your budget,
0:22:15 > 0:22:19- your profit margin gone. - Yes.
0:22:20 > 0:22:23So, I think we have to leave that one.
0:22:23 > 0:22:25I think Robert is right on that.
0:22:25 > 0:22:28It's always a danger that you get too attached to a house
0:22:28 > 0:22:31and the idea of making it fabulous.
0:22:31 > 0:22:34But you can't do that if the profit margins become too small.
0:22:34 > 0:22:37Doing the maths, making the right decisions
0:22:37 > 0:22:41and then the hard bit, sticking to them, is the way to go here.
0:22:42 > 0:22:43So, what are you going to do?
0:22:43 > 0:22:46Leave this living room as it is, just decorate it.
0:22:46 > 0:22:48This first kitchen, as it is.
0:22:48 > 0:22:51Put a new kitchen in and the little back kitchen,
0:22:51 > 0:22:55- just leave it as a utility room. - What about upstairs?
0:22:55 > 0:22:57Upstairs is pretty good.
0:22:57 > 0:23:00We need a new bathroom, I think, to bring it up to date.
0:23:00 > 0:23:04- The two bedrooms are in good order so they just need decorated.- The budget?
0:23:04 > 0:23:06HE SIGHS
0:23:06 > 0:23:09Now you're looking down, now you're looking worried.
0:23:09 > 0:23:1015 to 20?
0:23:10 > 0:23:1415 to 20? But you've only got £20,000 profit anyway.
0:23:14 > 0:23:18- Yes, that's true, well, 15. - Now, I'm worried.
0:23:19 > 0:23:23We will look at 10 to 12 to start with and see
0:23:23 > 0:23:26if we can keep it down as low as that.
0:23:26 > 0:23:30Let's hope he can because profit margins are looking tight.
0:23:30 > 0:23:33Robert has a time frame of three to four months
0:23:33 > 0:23:35and hopes to get it sold quickly.
0:23:35 > 0:23:37But is that the best plan here?
0:23:38 > 0:23:40My concern is that obviously you will do it up.
0:23:40 > 0:23:43The ceiling price, as we discussed earlier, is up here.
0:23:43 > 0:23:46You mustn't exceed that but if you held on to it for maybe
0:23:46 > 0:23:50just a few years, the properties would rise so much in value.
0:23:50 > 0:23:52We will look at that.
0:23:52 > 0:23:57The other thing is, in this area, the rental market is very, very strong.
0:23:57 > 0:23:59So we would rent it out very easily, I think,
0:23:59 > 0:24:02if it was up to a reasonable standard.
0:24:02 > 0:24:07One aspect to this house is the view from outside. It's not pretty.
0:24:07 > 0:24:13This area of town has recently had a weak property market,
0:24:13 > 0:24:16but as we said earlier, prices are increasing now
0:24:16 > 0:24:19so I think that will encourage more development
0:24:19 > 0:24:22and all this land will be fair game for further development.
0:24:22 > 0:24:25Robert, lovely meeting you today. I'm excited to see what you do.
0:24:25 > 0:24:28I'm keeping my fingers crossed that you do make a profit here.
0:24:28 > 0:24:32- Good luck, we'll see you soon.- Yes, thank you very much, see you soon.
0:24:32 > 0:24:36I'm worried that Robert is doing a lot of work for very little profit.
0:24:36 > 0:24:40But he is a project manager by trade so he might just surprise me.
0:24:40 > 0:24:42Find out later if he does.
0:24:44 > 0:24:48Still to come- in Lynemouth, is it a case of be careful what you wish for?
0:24:48 > 0:24:52I didn't want to get a property where it was going to be walk in,
0:24:52 > 0:24:53a quick spruce up and out.
0:24:55 > 0:24:59- Whilst in Belfast, Robert digs his heels in.- I'm sticking to my guns.
0:24:59 > 0:25:03We're going to sell it on and then move onto the next project.
0:25:10 > 0:25:13We float down river to South Derbyshire now
0:25:13 > 0:25:17to the village of Willington where I met Carrie and Adam,
0:25:17 > 0:25:21who were pleasantly shocked to buy their first home together
0:25:21 > 0:25:23for £134,000.
0:25:25 > 0:25:29I do love a bungalow and it was a pleasure to see this young couple
0:25:29 > 0:25:31ready to take it on and transform it.
0:25:34 > 0:25:37So, tell me, what are you going to do to the place?
0:25:37 > 0:25:40There's a few walls we would like to knock out.
0:25:40 > 0:25:44Just basically tart it up with new carpet or laminate throughout
0:25:44 > 0:25:47and redoing the bathroom.
0:25:47 > 0:25:48And kitchen.
0:25:48 > 0:25:51We're hoping to knock through the kitchen wall
0:25:51 > 0:25:53and make it into a large kitchen diner.
0:25:53 > 0:25:55What about all these archways?
0:25:55 > 0:25:58I think for the time being, money being restricted,
0:25:58 > 0:25:59maybe leave it as it is.
0:25:59 > 0:26:02Just paint it up, modernise it that way.
0:26:02 > 0:26:07Then in the future, possibly, make it a bit less "arch-y"!
0:26:12 > 0:26:16Not only was it a bit "arch-y", it was also a little peculiar
0:26:16 > 0:26:19with a strange layout and the decor of a bygone era.
0:26:22 > 0:26:25Carrie and Adam had a simple refurbishment plan
0:26:25 > 0:26:29and hoped to get help from friends and family to keep the costs down.
0:26:32 > 0:26:35We return ten months later.
0:26:46 > 0:26:50By knocking through the wall between the kitchen and rear extension,
0:26:50 > 0:26:53Adam and Carrie have created a wonderfully open
0:26:53 > 0:26:56and flowing space that leads round into the living room.
0:27:05 > 0:27:09Once dominated by dated archways, the living room is now modern
0:27:09 > 0:27:13and comfortable and brighter, too, with an extra window added.
0:27:14 > 0:27:18Our main problem really was light, we only had the one window.
0:27:18 > 0:27:23With the extension, we were not getting enough light.
0:27:23 > 0:27:25We wanted to make the room as light as possible.
0:27:25 > 0:27:32We decided to add a second window so that has given us more light.
0:27:32 > 0:27:35The fantastic transformation continues into the hallway
0:27:35 > 0:27:36and three bedrooms.
0:27:36 > 0:27:40The once dated decor is replaced with stylish floorboards
0:27:40 > 0:27:43and a contemporary finish.
0:27:55 > 0:27:58Along with a brand-new bathroom suite,
0:27:58 > 0:28:00Adam and Carrie have gone above and beyond
0:28:00 > 0:28:02what they originally set out to do,
0:28:04 > 0:28:07with the kitchen being a real high point for me.
0:28:10 > 0:28:14In the kitchen, one of the biggest jobs of the whole property,
0:28:14 > 0:28:17this was a window here, a wall and a door.
0:28:18 > 0:28:21We've knocked it all out and put in an RSJ
0:28:21 > 0:28:25so we could create the space for the breakfast bar.
0:28:25 > 0:28:29It's all a fitted kitchen, plenty of worktops and drawers
0:28:29 > 0:28:32and the breakfast bar there.
0:28:32 > 0:28:35So, we sit in and we have our meals there most of the time.
0:28:37 > 0:28:43Outside, the couple removed the car port to create more light inside.
0:28:43 > 0:28:46Unfortunately, bad weather has delayed work to the garden.
0:28:49 > 0:28:52Whilst there is still work to be done to the inside,
0:28:52 > 0:28:55the transformation here has really impressed me.
0:28:55 > 0:29:00But how are Adam and Carrie feeling with the finishing line in sight?
0:29:01 > 0:29:06- Awesome. Very good.- Yeah, we're dead pleased with how it's turned out.
0:29:07 > 0:29:11There are bits to do but we are really pleased with how it's gone.
0:29:11 > 0:29:17After you left, we got on demolishing straightaway.
0:29:17 > 0:29:20That took us for ever!
0:29:20 > 0:29:23We got rid of everything in the house and we thought,
0:29:23 > 0:29:26we're not going to get this house as empty as it is right now
0:29:26 > 0:29:30so we might as well try and get everything done within budget.
0:29:30 > 0:29:34We went over budget, but we scraped in where we could.
0:29:35 > 0:29:38We did work that we could do ourselves to save money,
0:29:38 > 0:29:42even just the painting and things and demolishing to save money.
0:29:42 > 0:29:48We just thought, while it's in a mess, keep it in a mess.
0:29:48 > 0:29:52Make as much mess as you're going to do and then it's done, isn't it?
0:29:53 > 0:29:55We just thought, do it all while we're at it.
0:29:57 > 0:30:00It makes sense to me, but with all the extra work done here,
0:30:00 > 0:30:03is their original budget a distant memory?
0:30:04 > 0:30:07- The budget doubled, I would say. - Yeah, we originally said 13...
0:30:07 > 0:30:1012 or 13,000 originally.
0:30:10 > 0:30:14- It's 26.- Yeah.
0:30:14 > 0:30:18So we had money away from the sale of my other property,
0:30:18 > 0:30:23and then we just used our wages every month.
0:30:25 > 0:30:27So with all the extra work done
0:30:27 > 0:30:30and taking into account Carrie's recovery
0:30:30 > 0:30:34from her double knee operation, how on Earth have they managed?
0:30:36 > 0:30:38- Good family and friends.- Definitely.
0:30:38 > 0:30:41We've had so much help, we can't thank them enough.
0:30:41 > 0:30:43The amount of help we've had has been so good.
0:30:43 > 0:30:46I've got loads of brothers who come round, my parents,
0:30:46 > 0:30:49uncles, aunties and cousins. You are the same, aren't you?
0:30:49 > 0:30:51My parents have done a lot, siblings,
0:30:51 > 0:30:54even my grandma and gramps have been on it.
0:30:54 > 0:30:59Carrie swore, when I first met her, that this was her for ever house
0:30:59 > 0:31:01and she was never going to move again.
0:31:01 > 0:31:06It will be interesting to see if their £160,000 investment here
0:31:06 > 0:31:09would pay dividends, should she change your mind.
0:31:10 > 0:31:14We invited two local estate agents along to have a look,
0:31:14 > 0:31:17starting with the agent who saw it originally.
0:31:17 > 0:31:22Yeah, they've made a nice job of the property, a good renovation.
0:31:22 > 0:31:25Some of the attention to detail is a little bit lacking
0:31:25 > 0:31:27but overall, the impression is very good.
0:31:27 > 0:31:29The bathroom is lovely, really luxurious.
0:31:29 > 0:31:32The kitchen is beautiful and I like the open plan aspect.
0:31:32 > 0:31:35I think there are small parts which could have been done to
0:31:35 > 0:31:36a slightly higher standard.
0:31:36 > 0:31:41Carrie and Adam are aware that there are things still to be completed,
0:31:41 > 0:31:45but it is going to be easier now they are living there.
0:31:45 > 0:31:48So what about those valuations?
0:31:48 > 0:31:50If I was to put this on the market,
0:31:50 > 0:31:53I would put it on in the region of £170,000.
0:31:53 > 0:31:55If we were putting this property on the market,
0:31:55 > 0:31:57we would value it at £170,000.
0:31:57 > 0:32:00This is our home now, we are quite happy here.
0:32:00 > 0:32:03Selling is not of any interest at the moment.
0:32:03 > 0:32:06It's nice to know we've not lost a load of money, though.
0:32:06 > 0:32:11Spot on, Carrie! It would mean a pre-tax profit of £10,000.
0:32:11 > 0:32:13And if they were renting,
0:32:13 > 0:32:16the valuers suggest they could get a 5% yield.
0:32:16 > 0:32:20But I've got the feeling that Carrie doesn't care two hoots.
0:32:20 > 0:32:25I don't plan on moving house again if I can very much help it again.
0:32:25 > 0:32:27Yeah, the same here.
0:32:27 > 0:32:29Unless we get thousands of kids
0:32:29 > 0:32:33- and we just need to get bigger and bigger.- Why do you do that?
0:32:33 > 0:32:36Well, not thousands, but there is now a baby on the way
0:32:36 > 0:32:39and a wedding, too, so congratulations!
0:32:44 > 0:32:49Time now to head over to Lynemouth in north-east England.
0:32:49 > 0:32:52Situated on the estuary of the River Lyne, it was,
0:32:52 > 0:32:57until 1926, no more than a farm and a cottage.
0:32:57 > 0:33:00But the opening of a colliery caused a local expansion
0:33:00 > 0:33:02and a town was born.
0:33:02 > 0:33:05And although the two main coal mines in the area have
0:33:05 > 0:33:09shut down, Lynemouth power station opened in 1972
0:33:09 > 0:33:12and the recent development of wind farms nearby ensures the area
0:33:12 > 0:33:15still has a future in energy production.
0:33:15 > 0:33:19So what am I here to see? Well, very enticing.
0:33:19 > 0:33:25£29,950 was the guide price.
0:33:25 > 0:33:29It's not much but the property sounds fairly substantial.
0:33:29 > 0:33:31A four-bedroomed mid-terrace.
0:33:31 > 0:33:34Four bedroomed? How have they done that?
0:33:34 > 0:33:35Let's find out.
0:33:35 > 0:33:38Talk amongst yourselves, I've got a bit of a walk first!
0:33:38 > 0:33:40# I'm walkin'
0:33:40 > 0:33:41# Yes, indeed
0:33:41 > 0:33:42# I'm talkin'
0:33:42 > 0:33:43# About you and me
0:33:43 > 0:33:45# I'm hopin'
0:33:45 > 0:33:47# That you come back to me... #
0:33:49 > 0:33:52Double glazing, that's a good start.
0:33:52 > 0:33:55In fact, as is the fact it's got a radiator.
0:33:55 > 0:33:57How do you get excited about that?
0:33:57 > 0:34:00What it means is there's central heating and for £29,950,
0:34:00 > 0:34:03you don't take anything for granted.
0:34:03 > 0:34:04Stairs up to your bedrooms
0:34:04 > 0:34:08and through into a really good-sized living area.
0:34:08 > 0:34:11Not so sure the dark flooring works.
0:34:11 > 0:34:14It makes it feel quite dark in here, surprise, surprise.
0:34:14 > 0:34:16But, it's a good size.
0:34:16 > 0:34:20Getting the double glazing, and then through into the kitchen.
0:34:20 > 0:34:23You know, it's a good-sized house, isn't it?
0:34:23 > 0:34:27Kitchen itself looks like it's half finished, but there are some
0:34:27 > 0:34:30new units that might be salvageable.
0:34:30 > 0:34:33Not sure about this though.
0:34:33 > 0:34:38Shower room without a loo off the kitchen? Not ideal.
0:34:38 > 0:34:39Intriguing.
0:34:41 > 0:34:44Scampering through the kitchen after a shower is not what
0:34:44 > 0:34:48I call modern living, but with the four bedrooms upstairs still
0:34:48 > 0:34:52to be seen, maybe something can be worked out here.
0:34:52 > 0:34:55And as for the loo, it can be found in what appears to be an
0:34:55 > 0:35:00extension off the original back door and that in turn also leads outside.
0:35:02 > 0:35:06So, little rear courtyard. You get to see the extension.
0:35:06 > 0:35:08Not extensive but what you might want to consider doing,
0:35:08 > 0:35:11is make it double-storey... Hang on a minute, what's that?
0:35:11 > 0:35:14You know when you need that power in your shed
0:35:14 > 0:35:17and you want to put an external supply in? Don't do it like this.
0:35:17 > 0:35:20It's supposed to be armoured cable, all sorts of stuff.
0:35:20 > 0:35:23It's a hole through the wall, a bit of plastic pipe,
0:35:23 > 0:35:28not a trip hazard. That's brilliant. But, if you can get over that...
0:35:28 > 0:35:32Out into this rear courtyard area and, you know what?
0:35:32 > 0:35:35For a four-bedroomed property, it's not exactly a lot of space, is it?
0:35:35 > 0:35:39# Is this all there is
0:35:39 > 0:35:42# I wanted so much more
0:35:42 > 0:35:45# The gold in those hills
0:35:45 > 0:35:49# Is this all there is... #
0:35:49 > 0:35:53It's all about proportions and layout with this house so far.
0:35:53 > 0:35:57A huge front garden and a tiny back yard don't quite add up,
0:35:57 > 0:36:01though the good bit is there is possible access for off-street
0:36:01 > 0:36:05parking at the back and downstairs, there's a big living room.
0:36:05 > 0:36:10But everything else is rather squashed and it does make me wonder.
0:36:10 > 0:36:14So, how have they managed to cram four bedrooms into what is
0:36:14 > 0:36:16a relatively small property?
0:36:16 > 0:36:22Well, by creating this little landing here off which the four
0:36:22 > 0:36:23bedrooms are situated.
0:36:25 > 0:36:32One through there, one there, one there and one through there.
0:36:32 > 0:36:37Clearly, what you've gained in numbers, you've lost in space.
0:36:37 > 0:36:39All the bedrooms are relatively small apart from this
0:36:39 > 0:36:42one, which is a decent size.
0:36:42 > 0:36:44The only bad thing about this one is, it's got a boiler
0:36:44 > 0:36:49situated in it, which, in a bedroom, is never good and at the very least,
0:36:49 > 0:36:51that would definitely have to be serviced and checked out
0:36:51 > 0:36:53to make sure it was functioning properly.
0:36:53 > 0:36:55Do I like the four bedrooms?
0:36:55 > 0:36:57Well, if you need four bedrooms, I suppose it works.
0:36:57 > 0:37:00Personally, I think this should be put back to maybe a three or
0:37:00 > 0:37:05even two-bedroomed property and take that toilet
0:37:05 > 0:37:08and shower room from downstairs and bring it up here.
0:37:08 > 0:37:11I don't think that would necessarily detract from the value
0:37:11 > 0:37:14and actually, it would be a great thing to do.
0:37:16 > 0:37:18It's definitely not working for me as it is.
0:37:18 > 0:37:22Who would enjoy the current shower and loo arrangements?
0:37:22 > 0:37:25I'm guessing not a family who would fill the four bedrooms.
0:37:25 > 0:37:28So, does a local estate agent agree?
0:37:28 > 0:37:30There's room for improvement
0:37:30 > 0:37:36but no room for complaint with that guide price of £29,950.
0:37:37 > 0:37:42It's traditionally a terraced property in a colliery area,
0:37:42 > 0:37:47so it probably has had bathrooms extended, which is why
0:37:47 > 0:37:48it's on the ground floor.
0:37:48 > 0:37:50Originally, it wouldn't have had a bathroom.
0:37:50 > 0:37:53It would have been a two-up, two-down type of terrace.
0:37:55 > 0:37:59I would advise putting a bathroom or shower room on the first floor
0:37:59 > 0:38:02and general decoration and re-carpeting.
0:38:02 > 0:38:03So, we're both agreed.
0:38:03 > 0:38:07The bathrooms should be upstairs but does the agent think that
0:38:07 > 0:38:12sacrificing a bedroom would affect the resale value of the property?
0:38:12 > 0:38:14I think whether or not the buyer chooses to lose
0:38:14 > 0:38:16one of the smaller bedrooms
0:38:16 > 0:38:19and make a first-floor bathroom out of that one,
0:38:19 > 0:38:22or whether he chooses to refurbish what he's got and keep the four
0:38:22 > 0:38:26bedrooms on the first floor, the value is likely to be very similar.
0:38:26 > 0:38:30I would advise that he'd market the property in the region of £60,000.
0:38:32 > 0:38:35Well, moving a bathroom up a floor isn't cheap,
0:38:35 > 0:38:39so, if you were looking to sell this on, it wouldn't be worth your while.
0:38:39 > 0:38:42Would the bathroom situation make any difference to the rent
0:38:42 > 0:38:44this property could get?
0:38:44 > 0:38:47Whether you went with three bedrooms and an upstairs bathroom
0:38:47 > 0:38:49or left it in situ as a four-bedroom,
0:38:49 > 0:38:53you'll be looking at about £400 per calendar month.
0:38:54 > 0:38:58So, what do you think? Worth that £29,950 guide price?
0:38:58 > 0:39:00Oh, yes, I think so.
0:39:00 > 0:39:04Great little house, lots of space, not too much work to do.
0:39:04 > 0:39:07Let's see who agreed when it went under the hammer.
0:39:10 > 0:39:12It's a four-bedroom terraced property.
0:39:12 > 0:39:14Anybody want to start at £30,000?
0:39:14 > 0:39:19How about 26? The gentleman standing at £26,000.
0:39:19 > 0:39:21Do I have 27 anywhere else?
0:39:21 > 0:39:2327 right in the corner, 27,000.
0:39:23 > 0:39:2728? 28,000, 28 bid. 29?
0:39:27 > 0:39:2929 bid. 30?
0:39:29 > 0:39:3330,000 bid. 31. Do I have 31 anywhere else?
0:39:33 > 0:39:36The gentleman standing at £30,000. I'll take 500.
0:39:36 > 0:39:42I'm selling once at 30,000, I'm selling for the second
0:39:42 > 0:39:44and final time at £30,000.
0:39:44 > 0:39:46Sold, gentleman standing.
0:39:46 > 0:39:50And the successful bidder getting the lot for £30,000,
0:39:50 > 0:39:53only £50 above the guide price was Dave.
0:39:54 > 0:39:57Dave works as an electronics technician
0:39:57 > 0:39:59and lives in nearby Ashington.
0:39:59 > 0:40:02This house was his first ever auction purchase
0:40:02 > 0:40:05and will also be his first renovation project.
0:40:05 > 0:40:08Why, what and how was what I wanted to find out
0:40:08 > 0:40:11when we met up back at the house for a chat.
0:40:11 > 0:40:14- Dave, good to meet you.- Hiya. - Congratulations.
0:40:14 > 0:40:17Tell me why you wanted to buy this place.
0:40:17 > 0:40:19I suddenly decided, I was looking for a new house,
0:40:19 > 0:40:23thinking about moving and it was taking for ever to do my house and...
0:40:23 > 0:40:27"Can't be bothered. Not ready to move yet."
0:40:27 > 0:40:31My money was sort of sitting in the bank doing nothing.
0:40:31 > 0:40:35And I had been watching a few shows, property development nut,
0:40:35 > 0:40:36I thought, "Give it a go."
0:40:36 > 0:40:38This one came up.
0:40:38 > 0:40:42Had a look at it, came down, thought, "Potential."
0:40:42 > 0:40:46- I went to the auction and managed to get it.- Got it.
0:40:46 > 0:40:49Thinking about doing it up and selling it.
0:40:49 > 0:40:53- So, why this particular house then? - It seemed to have a lot of potential.
0:40:53 > 0:40:57For the price I had bought this place for, and for the price doing
0:40:57 > 0:41:00it up, it should be enough potential at the end for some decent profit.
0:41:00 > 0:41:03Great. How was the auction for you?
0:41:03 > 0:41:09- Erm... Quite calming actually, I found it enjoyable.- Calming?!- Yes.
0:41:09 > 0:41:10I was quite calm at first.
0:41:10 > 0:41:14Never, ever has anyone described an auction as calming!
0:41:14 > 0:41:16I was quite calm about it until afterwards,
0:41:16 > 0:41:19until I knew I'd won and then I started shaking!
0:41:19 > 0:41:23So, how is he going to shake this place up?
0:41:23 > 0:41:26It's four-bedroom at the moment but there is nothing upstairs,
0:41:26 > 0:41:30bathroom-wise, so I'm going to convert to a three bedroom.
0:41:30 > 0:41:31Put a bathroom upstairs.
0:41:31 > 0:41:34I'll be bringing the boiler from the bedroom back downstairs,
0:41:34 > 0:41:37- I don't like them in the bedrooms. - It doesn't work well, does it?- No.
0:41:37 > 0:41:40Make the kitchen bigger by knocking the wall out where the bathroom is.
0:41:40 > 0:41:42Moving the window along,
0:41:42 > 0:41:46- thinking about putting patio doors or French doors.- Yeah.
0:41:46 > 0:41:47Going out in the garden,
0:41:47 > 0:41:53- a bit of lawn and at the end, double gates, and off-street parking.- Great.
0:41:53 > 0:41:54Should be good.
0:41:54 > 0:41:57"Good" is the word I'd use for Dave's plans.
0:41:57 > 0:42:00I reckon he's got all the right solutions here
0:42:00 > 0:42:02as well as a £15,000 renovation budget
0:42:02 > 0:42:05and a three- to four-month timescale.
0:42:05 > 0:42:08He will have a builder friend on hand to help him out
0:42:08 > 0:42:12but having built a garage for himself, he is no stranger
0:42:12 > 0:42:16to the world of extreme DIY and isn't afraid of any challenges.
0:42:16 > 0:42:19In fact, he's looking forward to them.
0:42:19 > 0:42:21Another reason I like this is
0:42:21 > 0:42:24cos there's a lot of different parts to do.
0:42:24 > 0:42:27I didn't want to get a property where it was going to be walk in,
0:42:27 > 0:42:28quick spruce up and out.
0:42:28 > 0:42:30I want to see what it's really going to be like,
0:42:30 > 0:42:32it's not going to be easy.
0:42:32 > 0:42:36It'll give us an idea of what doing property development is really about!
0:42:38 > 0:42:41I think he's about to find out what it's all about,
0:42:41 > 0:42:45but with his calm approach, I reckon he's going to be just fine.
0:42:46 > 0:42:50This project isn't just about making his savings work better,
0:42:50 > 0:42:53it's about a long-term goal for later on
0:42:53 > 0:42:57when his career as an electronics technician comes to an end.
0:42:57 > 0:43:00I've probably got about eight to nine years left in my current job.
0:43:00 > 0:43:03The boss is virtually at retirement age now
0:43:03 > 0:43:05and he said he'll stay on a bit longer.
0:43:05 > 0:43:07And I'm thinking, "What can I do?"
0:43:07 > 0:43:10I'm getting towards 50, so I'm getting a bit on.
0:43:10 > 0:43:12And I thought, "Yeah, why not?"
0:43:12 > 0:43:16Make a few properties, get them done, sell them
0:43:16 > 0:43:20and with the profits get one where I can rent and slowly
0:43:20 > 0:43:23but surely build up a portfolio that way of selling
0:43:23 > 0:43:27- and renting properties, and comes good for my retirement.- Yeah.
0:43:27 > 0:43:30Well, Dave, great to meet you. Congratulations.
0:43:30 > 0:43:32And good luck with it.
0:43:32 > 0:43:35I think Dave's got himself a cracking property here
0:43:35 > 0:43:37and the right ideas to sort it out.
0:43:37 > 0:43:41How will he get on in his first development project?
0:43:41 > 0:43:43You can find out later in the show.
0:43:46 > 0:43:48Well, there are nearly always delays
0:43:48 > 0:43:51when it comes to doing up property, so you really do need to factor
0:43:51 > 0:43:55those into your calculations when it comes to timescale and budget.
0:43:55 > 0:43:59So, have our buyers hit their deadlines? Let's find out.
0:44:05 > 0:44:07Back over now to Northern Ireland
0:44:07 > 0:44:10and the two-bedroom terrace that's just off the famous
0:44:10 > 0:44:14Shankill Road and just five minutes from Belfast city centre.
0:44:16 > 0:44:20It was bought for £30,000 at auction by first-time developer Robert
0:44:20 > 0:44:22and his mother Myrtle.
0:44:27 > 0:44:30I met project manager Robert back at the property, where his plans
0:44:30 > 0:44:32and budget had me a little worried.
0:44:36 > 0:44:37Your budget?
0:44:37 > 0:44:39HE SIGHS
0:44:39 > 0:44:43- See, now you're looking down. Now you're looking worried!- 15-20.
0:44:43 > 0:44:4615-20, but you've only got 20,000 profit anyway!
0:44:48 > 0:44:51Since the ceiling price for this house was 50,000, there was
0:44:51 > 0:44:54a real danger that Robert would just get carried away
0:44:54 > 0:44:56and blow his potential profit.
0:44:56 > 0:44:59And I could see why he wanted to knock down walls,
0:44:59 > 0:45:03especially with the bizarre layout at the back of the property.
0:45:03 > 0:45:08Two months later, we've returned to find out how they got on.
0:45:22 > 0:45:24The kitchen conundrum has been solved.
0:45:24 > 0:45:26Not by knocking down walls
0:45:26 > 0:45:30but by thinking cleverly about how to use the space.
0:45:30 > 0:45:33What I thought of as a pre-kitchen has now clearly been
0:45:33 > 0:45:36made into one which is definitely fit for purpose.
0:45:38 > 0:45:40So, this is our new kitchen.
0:45:40 > 0:45:44The original house didn't really have a fitted kitchen to speak of,
0:45:44 > 0:45:46it was in a very poor state of repair.
0:45:46 > 0:45:48We picked a lighter colour because it's a smaller space here
0:45:48 > 0:45:52and there isn't much natural light. Like everywhere else in the house,
0:45:52 > 0:45:55the walls had to be stripped and some plastering repaired.
0:45:55 > 0:45:58And then some decoration and I put the floor down myself.
0:45:58 > 0:46:00Overall we're very happy with kitchen
0:46:00 > 0:46:03and we're hoping it'll help to sell the house.
0:46:03 > 0:46:06What was the second half of the old kitchen is now a useful
0:46:06 > 0:46:09utility area, that all makes much more sense.
0:46:11 > 0:46:15At the back, the lean-to remains but it has been cleaned up
0:46:15 > 0:46:16and just looks more inviting.
0:46:19 > 0:46:23And upstairs, thankfully, it's curtains for the curtains.
0:46:27 > 0:46:31Both bedrooms are looking brighter and so much more cheerful.
0:46:33 > 0:46:36The bathroom has had a lot of work.
0:46:36 > 0:46:39Robert has been clever here not to overspend.
0:46:40 > 0:46:43There was quite a nice old bath here originally.
0:46:43 > 0:46:45So we decided not to take it out but just get it re-enamelled.
0:46:45 > 0:46:48Overall, we are very pleased with how it has turned out,
0:46:48 > 0:46:51we tried to keep it fairly light and plain.
0:46:51 > 0:46:53Because it is quite a small space.
0:46:53 > 0:46:56But we're quite happy with it.
0:46:56 > 0:47:01I'm glad to see that Robert has kept this renovation relatively simple,
0:47:01 > 0:47:04meaning he'll be able to maximise any potential profit.
0:47:06 > 0:47:10His budget was a bit uncertain when we met, but he has ended up working
0:47:10 > 0:47:14on this project full-time, so that in itself is a great money-saver.
0:47:15 > 0:47:18In the end, we did OK with the budget.
0:47:18 > 0:47:21We had originally tried to be a little bit pessimistic
0:47:21 > 0:47:22about how much we'd end up spending
0:47:22 > 0:47:25but in the end we kept it to 8,000, which was pretty good.
0:47:25 > 0:47:27That includes all fees.
0:47:27 > 0:47:31Well, £8,000 is a pretty good outcome as far as I can see.
0:47:31 > 0:47:36He's been firm on his spend even in the face of the unexpected.
0:47:36 > 0:47:39Some of the problems and challenges we face now,
0:47:39 > 0:47:41the walls were in a pretty poor state of repair,
0:47:41 > 0:47:43whenever we went to remove the wallpaper
0:47:43 > 0:47:48we found that there were, in some rooms, five layers of wallpaper.
0:47:48 > 0:47:50Which took a lot of scraping off and even after
0:47:50 > 0:47:53we had it all scraped off, the walls were pretty poor state of repair
0:47:53 > 0:47:57so we ended up doing a lot more plastering than we had planned to do.
0:47:57 > 0:48:01Robert did jobs like tiling and replacing stair banisters.
0:48:01 > 0:48:04And he project-managed the work, too.
0:48:04 > 0:48:07We got tradesmen in to fit new windows and fit the kitchen
0:48:07 > 0:48:10and we got a plumber in to do the bathroom.
0:48:10 > 0:48:14And a plasterer and then I got a painter decorator that I know
0:48:14 > 0:48:17to come and give us a hand with the painting and decorating.
0:48:17 > 0:48:20I've also had help from family, so my mum
0:48:20 > 0:48:26and my sister were here most days as well, helping me paint and decorate.
0:48:26 > 0:48:30By using his project manager experience, Robert not only kept
0:48:30 > 0:48:34costs down, but managed to complete the work in just two months.
0:48:34 > 0:48:35A month quicker than expected.
0:48:37 > 0:48:41But what I want to know is, what about Robert's mum Myrtle?
0:48:41 > 0:48:43Is she keen on the finished article?
0:48:43 > 0:48:46My mum is very pleased with the results, as well. Yes.
0:48:46 > 0:48:51I let her pick all the colours and coordinate the...
0:48:51 > 0:48:53the look of the house.
0:48:53 > 0:48:55Well, Mum knows best, Robert.
0:48:56 > 0:48:59Originally the estate agent and I agreed that it would be
0:48:59 > 0:49:03better to sit on this property and rent it for a while
0:49:03 > 0:49:06before selling. But Robert and his mum were keen on selling.
0:49:06 > 0:49:09- Is this still the case? - I'm sticking to my guns.
0:49:09 > 0:49:13We're going to sell it on. And then move onto the next project.
0:49:14 > 0:49:18Well, would the agent who saw it the first time be persuaded that
0:49:18 > 0:49:21Robert is right, and what will another agent think of this
0:49:21 > 0:49:22property in which Robert
0:49:22 > 0:49:27and his mother Myrtle have invested a total of £38,000?
0:49:29 > 0:49:33There is a vast difference between my first visit and my second visit.
0:49:33 > 0:49:36Internally, it is like a different house.
0:49:36 > 0:49:39Kitchen particularly and bathroom are the key areas for a lot of
0:49:39 > 0:49:42people, so he's done those really well and they're really smart.
0:49:42 > 0:49:46In my opinion, I would probably rent for a few years
0:49:46 > 0:49:49and then hope that the value would rise over that period.
0:49:49 > 0:49:53For rental value, I would estimate between £400 and 425
0:49:53 > 0:49:54per calendar month.
0:49:54 > 0:49:58Per calendar month rental would probably be for 425-450.
0:49:59 > 0:50:03Taking an average of £425pcm,
0:50:03 > 0:50:05that would mean a possible rental yield
0:50:05 > 0:50:07of a whopping 13%.
0:50:09 > 0:50:12Will Robert be persuaded to rent?
0:50:12 > 0:50:17Uh, rental value of £425-£450 sounds quite good,
0:50:17 > 0:50:21erm...but I think we will still be looking to sell the house.
0:50:21 > 0:50:25Well, in that case, with a purchase price of £30,000
0:50:25 > 0:50:29and a spend of eight grand, totalling £38,000,
0:50:29 > 0:50:30what could the house sell for?
0:50:30 > 0:50:32If I were putting this onto the market,
0:50:32 > 0:50:34I would probably be asking, I would say,
0:50:34 > 0:50:36probably something around £45,000.
0:50:36 > 0:50:37For resale value,
0:50:37 > 0:50:42I would estimate the valuation to be between £45,000 and £50,000.
0:50:43 > 0:50:46That top figure of £50,000
0:50:46 > 0:50:49would give them a potential pre-tax profit of £12,000.
0:50:49 > 0:50:52Robert did say he would be happy to achieve a small profit
0:50:52 > 0:50:54when he set out on this
0:50:54 > 0:50:57and that's not bad for two months' work.
0:50:57 > 0:51:01So, will the mother-and-son team be doing another property together?
0:51:01 > 0:51:03Yes, we would be interested in doing this again.
0:51:03 > 0:51:06It all went fairly well, it's been a good experience,
0:51:06 > 0:51:08so I think we would be back at the next auction
0:51:08 > 0:51:09after we get this house sold.
0:51:16 > 0:51:17Lynemouth in Northumberland
0:51:17 > 0:51:20is where we first saw this four-bedroomed house
0:51:20 > 0:51:23which was, well...well, it was OK.
0:51:23 > 0:51:25It had a good-sized front garden,
0:51:25 > 0:51:28but a slightly disappointing back yard.
0:51:28 > 0:51:32It had four bedrooms, but no upstairs bathroom,
0:51:32 > 0:51:36just a shower room downstairs and an odd separate bathroom
0:51:36 > 0:51:39and a decent-sized lounge and kitchen,
0:51:39 > 0:51:41but not in great shape.
0:51:41 > 0:51:43So, it posed a few challenges
0:51:43 > 0:51:46and for local electronics technician Dave,
0:51:46 > 0:51:51that's just what he wanted from his first property purchase.
0:51:51 > 0:51:53# And you're gonna find out the hard way
0:51:53 > 0:51:55# You take the hard way
0:51:55 > 0:51:56# Gonna take the hard way... #
0:51:56 > 0:51:59I didn't want to get a property where it was going to be walk in,
0:51:59 > 0:52:01quick spruce up and out.
0:52:01 > 0:52:03I wanted to see what it's really going to be like.
0:52:03 > 0:52:06It's not going to be easy, um...
0:52:06 > 0:52:09It'll give us an idea of what doing property development's really about.
0:52:12 > 0:52:14So, Dave wasn't one for an easy life
0:52:14 > 0:52:17and having bought the property for 30,000,
0:52:17 > 0:52:19he was hoping that a budget of 15,000
0:52:19 > 0:52:22and a three- to four-month timescale
0:52:22 > 0:52:24could transform the house.
0:52:24 > 0:52:26But how hard could it be?
0:52:26 > 0:52:30Well, nearly five months later, we're back to find out.
0:52:33 > 0:52:37Well, the lawn's been cut and the front's tidied up.
0:52:37 > 0:52:39But come on, Dave - you wanted to challenge yourself.
0:52:39 > 0:52:41Using a lawn mower hardly counts.
0:52:43 > 0:52:44We basically had to strip the whole house
0:52:44 > 0:52:46and start from scratch.
0:52:49 > 0:52:53Ah! That's more like it - a "ground up" renovation.
0:52:53 > 0:52:55Much more testing.
0:52:57 > 0:52:59Judging by the front lounge and kitchen,
0:52:59 > 0:53:01it's a challenge he's relished.
0:53:02 > 0:53:04Downstairs, in the kitchen area,
0:53:04 > 0:53:07we decided to completely strip out the kitchen.
0:53:07 > 0:53:11We had a small bathroom area which basically just had a shower in,
0:53:11 > 0:53:13so we got rid of the shower
0:53:13 > 0:53:15and made everything into a kitchen-diner,
0:53:15 > 0:53:18so the family can all have a meal together.
0:53:26 > 0:53:28Well, it might be a bigger and better kitchen,
0:53:28 > 0:53:31but where now is the bathroom?
0:53:32 > 0:53:35The upstairs layout just wasn't working.
0:53:35 > 0:53:38None of the doors opened the correct way.
0:53:38 > 0:53:41There was no bathroom, four bedrooms. It was just a mess.
0:53:42 > 0:53:44I sat down with the builder,
0:53:44 > 0:53:48he drew up a plan and came out with three bedrooms and an en-suite
0:53:48 > 0:53:50and a big bathroom.
0:53:56 > 0:53:59I also thought there were too many rooms squeezed in here
0:53:59 > 0:54:01and Dave has done a great job
0:54:01 > 0:54:05turning it into a really well-proportioned three-bed.
0:54:05 > 0:54:07With one of the bedrooms now en suite
0:54:07 > 0:54:10and a good-sized family bathroom,
0:54:10 > 0:54:13I think Dave has greatly improved this house.
0:54:17 > 0:54:20He has just to sort out the rear yard now.
0:54:20 > 0:54:25Uh, there is still plans to put a car-parking area out at the back,
0:54:25 > 0:54:29but...I might leave that until I sell the house.
0:54:30 > 0:54:33The new owners may decide just to leave it as a garden
0:54:33 > 0:54:36or they may want a car-parking area so I can do that.
0:54:36 > 0:54:40Well, that may be one job he's left for a later date
0:54:40 > 0:54:43but he certainly hasn't gone for the easy option here.
0:54:45 > 0:54:48Dave wanted to do a more comprehensive refurbishment,
0:54:48 > 0:54:50not just to get a better property,
0:54:50 > 0:54:53but to learn about the development process.
0:54:53 > 0:54:55So what has he learned?
0:54:55 > 0:54:57I've got to be more hands-on.
0:54:57 > 0:55:00I stood back and let other people do the work
0:55:00 > 0:55:05and tried to manage the situations that arise
0:55:05 > 0:55:07and I found out you can't really do that -
0:55:07 > 0:55:10you've got to be hands-on, you've got to be here,
0:55:10 > 0:55:13you've got to step in and you've got to get in with the work.
0:55:13 > 0:55:17Yes, he's dead right - keeping on top of everything is key
0:55:17 > 0:55:20and in this case, there were problems with plastering
0:55:20 > 0:55:23and a lack of coordinating with the tradesmen,
0:55:23 > 0:55:25causing delays in work being done,
0:55:25 > 0:55:30which I'm sure wasn't good for his £15,000 budget, either.
0:55:30 > 0:55:35Uh, we had to go slightly over-budget, by about £7,000.
0:55:35 > 0:55:37A £7,000 overspend
0:55:37 > 0:55:40takes his original £15,000 budget
0:55:40 > 0:55:43to £22,000.
0:55:43 > 0:55:45With the £30,000 he paid for the house in the first place,
0:55:45 > 0:55:48his total spend is £52,000.
0:55:48 > 0:55:51So, has learning the hard way paid off?
0:55:51 > 0:55:54What did two local estate agents think?
0:55:54 > 0:55:56First, the agent who saw it originally.
0:55:58 > 0:56:01First impressions, it looks much more spacious and clean,
0:56:01 > 0:56:04replastered walls, ready to move into.
0:56:04 > 0:56:07The property's done to a very high standard
0:56:07 > 0:56:09with the bathroom and the en-suite
0:56:09 > 0:56:11and the large open-plan kitchen.
0:56:11 > 0:56:13I think it's been much improved
0:56:13 > 0:56:15by deciding to go with three bedrooms upstairs
0:56:15 > 0:56:17and installing a family bathroom to that floor.
0:56:20 > 0:56:22David ideally wants to sell the house,
0:56:22 > 0:56:25but, if necessary, he would consider renting it out.
0:56:26 > 0:56:32I would recommend a rental price of between £425-£450pcm.
0:56:32 > 0:56:38This property would rent between £450-£475pcm.
0:56:38 > 0:56:42That was the price I was expecting, about £450, so that's spot-on.
0:56:44 > 0:56:48£450pcm would generate a yield above 10% -
0:56:48 > 0:56:50that's not too shabby.
0:56:50 > 0:56:56But how would his £52,000 investment fare on the current resale market?
0:56:56 > 0:57:00I would recommend an asking price in the region of £75,000,
0:57:00 > 0:57:04looking to achieve between £65,000-£70,000 sale price.
0:57:04 > 0:57:06This property would be put on the market
0:57:06 > 0:57:09for between £70,000-£75,000
0:57:09 > 0:57:11to achieve close to the asking price.
0:57:11 > 0:57:15That's good, cos I was looking at between...68 and 70,
0:57:15 > 0:57:17so that's slightly higher than I first thought.
0:57:17 > 0:57:19Well, that's a potential pre-tax profit
0:57:19 > 0:57:22of between £13,000-£23,000.
0:57:22 > 0:57:25Not bad as a first property project.
0:57:25 > 0:57:27So, is he glad he took it on?
0:57:27 > 0:57:29It was a really worthwhile project.
0:57:29 > 0:57:32I wanted something to get my teeth into
0:57:32 > 0:57:35and there's been a lot of problems, but everything's been overcome,
0:57:35 > 0:57:38so at least next time I know what to look for
0:57:38 > 0:57:39and hopefully, I can do a better job.
0:57:42 > 0:57:45Well, that's what happened to the buyers on today's show
0:57:45 > 0:57:49but anything can - and often does - happen on Planet Property.
0:57:49 > 0:57:53So, make sure you join us next time for more Homes Under The Hammer.
0:57:53 > 0:57:55- We'll see you, then. - Goodbye.- Goodbye.