Episode 18 Homes Under the Hammer

If you've ever wondered about going to an auction

but you'd not ever had the nerve, perhaps now is the time

to take the plunge because there's so much variety in the catalogues.

There are and there's literally hundreds of properties

being sold at auction every month.

So, head down to your local one and check out the action.

People often ask us how to behave in an auction room.

There are no hard and fast rules but a couple of our tips are,

make sure you sit where you can be seen by the auctioneer

and set yourself a price limit and stick to it!

Let's see what our buyers bid for on today's programme.

First up, in Derbyshire, the future is mapped out for one couple.

-The idea is that this is home?

-I don't want to move ever again.

-Ever again?

-I hate moving house.

In Belfast, the future is looking a little uncertain. Your budget?

HE SIGHS

Now you're looking down!

And in Lynemouth, Dave takes it all in his stride.

How was the auction for you?

-Quite calming actually, I found it enjoyable.

-Calming?!

All of these properties have been sold at auction.

We'll find out who bought them and what they paid for them

when they went under the hammer.

Hammers down, it's yours.

I am now in the heart of South Derbyshire.

This picturesque and historic village location, which started life

centuries ago as a small inland port, has undergone a fair bit

of investment recently.

It has proved particularly popular with the narrow boat community.

One of the really beautiful by-products

of the Industrial Revolution,

especially here in the Midlands, was the development of the canal system.

This is the Trent and Mersey, one of the most famous.

I'm in Willington, equally distanced between Burton-on-Trent and Derby,

a great little spot and with this on your doorstep, definitely!

So, if you're looking for a semi-rural village location

with plenty of local amenities and handy commuter links to the cities of

Derby and Birmingham, then Willington could be the perfect choice for you.

Properties here are sure to attract interest at the local auctions.

Today's property is a bungalow and I am a great fan

of this particular house style,

although they've always had an unfortunate image.

A recent report concluded that in 2012,

the number of new bungalows built dropped to an all-time low,

just 1,700 in one year, that's 2% of the new housing market,

which means bungalows are becoming increasingly rare.

Sounds like a good one.

£125,000 plus was the guide price, let's take a look.

# Don't, don't you want me? #

So, what particular layout have we got with this bungalow?

Well, a nice little entrance area there

and then through into your main porch and straightaway,

an indication of the style and age of this building!

Wow, do you remember these? I love that noise.

Buy it for the phone, I say!

Basically, your bedroom there, the rear end of the living room there.

The second bedroom there. Bathroom here.

I mean, it is all of that sort of era, isn't it?

Interesting colour combinations going on. The carpet? Wow!

But, very spacious is the first thing I'm seeing, especially in here.

Once you come to the rear of the property,

it really starts to open up, because you've got this kitchen

which is a nice size, lots of light pouring in through the windows.

Again, it needs completely redoing but it's nice.

Then what I guess is kind of an extension on the back

of the property because once this was the rear window,

but it has created an extension, this really nice-sized dining area,

which you can access also from the original living room by these

sliding patio doors.

That brings you neatly round in a circle to the living room.

For a bungalow, it feels very spacious.

This house was obviously done up to the height of fashion

around 40 years ago and has had very little done since.

Hello archways!

# Underneath the arches

# I dream my dreams away... #

If you're a fan of that distinctive retro style, then bingo!

If not, you'd probably rip it all out

and you'd have a blank canvas on which to start afresh.

Let's head outside.

One thing which some people whinge about when it comes to bungalows

is that you are limited with space, obviously you only have one floor.

In this case, this bungalow, if it is lacking on the inside,

it definitely makes up for it outside,

because not only have you got a garage at the end there

and then this car port area, there's a workshop there and it goes on.

You've got this summer house kind of thing there

and then to cap it all, a really nice sized garden.

So, there you go, nothing to complain about there.

# I can't complain! #

I'm definitely not complaining.

This brilliant bungalow just keeps getting better.

The functional extra floor space really adds value to the property

and yes, it does need modernising throughout,

but it's an awful lot of property for that guide price of £125,000 plus.

We asked a local property expert along to discuss the options.

What you would do with this property

depends on what the incoming buyer wants and needs.

Originally, three bedrooms.

If you needed three bedrooms for a family, for example,

then you'd probably reinstate the original third bedroom.

If it was just a couple, you might look at possibly an en-suite.

You've got an additional lounge across the back

so you don't need all that space there.

I would look to make the main room across the back into a big lounge

and possibly put either a bedroom or en suite

into where the original third bedroom was.

We are agreed, lots of fantastic and flexible space.

What about value potential?

If you were just renovating the property as it stands without

any structural alteration,

I would expect it to achieve in the region of £160,00 to £165,000.

If you were to make this into a really nice three-bedroomed bungalow

and make the living kitchen across the back, or indeed,

make it into a two-bedroomed property with an en-suite,

I would expect it to make in the region of £170 to £175,000.

What about the rental market?

If you were to renovate the property as it is with just a simple

renovation all the way through,

I would expect it to achieve in the region of £600 per calendar month.

If you were to renovate the property

and make it into either a three-bedroomed bungalow

or two bedrooms with an en-suite,

I'd expect it to achieve nearer £700 per calendar month.

It certainly needs a little bit of bringing up-to-date

but intrinsically, this is a great little property.

Let's see who agreed when it went under the hammer.

Start me where you will with this one. Let's say 130 for it.

130? 126?

We'll start it at 120 if you like.

£120,000 for it. 120, thank you.

121? 121. 122.

123. 124.

125. And six. 127.

128 is bid.

129. 130.

131.

132. 132.

133. 134. 135?

At £134,000, once, £134,000 twice.

Third and last chance, any higher bid on it? It's going to sell.

Hammer's down, it's yours.

# I feel good, I knew that I would now! #

The delighted young couple with their successful bid

of £134,000 are Adam and Carrie.

They both live and work in the area and know it well.

Adam is an engineer for an aeronautics division

while Carrie does the books for her dad's company as well as working

in her aunt's cafe and manages to find the time

to umpire netball matches.

It's their first property together and I can't wait to find out more.

-Carrie, Adam, great to meet you both. Congratulations!

-Thank you.

-You looked pretty excited there?

-Yeah, we were.

We went on the day, not really expecting to get anything.

We had looked at these properties and then, we bid for this one.

We liked it and we ended up getting it.

What were you thinking at that moment when the hammer went down?

I couldn't believe it, I was shocked. In a good way.

Why have you bought it?

We wanted a bigger place, in the next few years,

there could be more of us!

So, yeah, we wanted a bigger place.

Is he revealing some information he shouldn't there!

-She doesn't know that yet!

-You don't think you should involve her?

Maybe a little bit!

The pair have known each other since their early teens,

but have only been dating for a few months.

They currently live in Carrie's terraced house in Derby

but are eager to move quickly

and are particularly pleased they've found a bungalow.

I'm having an operation on both my knees soon

so a bungalow is quite handy, no stairs.

Wow, what kind of operation?

Just to fix the ligaments in my knees

because I've been playing netball.

So, no stairs. And the garden is beautiful. I love the garden.

Tell me, then, what are you going to do to the place?

There's a few walls we would like to knock out and just basically,

tart it up. New carpets or laminates throughout,

and redoing the bathroom.

And kitchen.

We're hoping to knock through the kitchen wall

and make it into a large kitchen diner.

What do you think of these archways?

For the time being, money being restricted,

maybe leave it as it is, just paint it up, modernise it that way

and then in the future, possibly, make it a bit less "arch-y"!

-But the idea is, this is home?

-Yes, I don't want to move ever again.

-Ever again?

-I hate moving house. I do not want to move.

-This is it, I will die here.

-Wow! How old are you again?

-26.

Have you been approached about this idea of this being

your final resting place?

Yes, Carrie says, but I don't know, we'll see how things go.

I just end up doing what I'm told probably anyway!

Well, they are in this for the long-term, so their budget of £12,000

for a straightforward refurbishment should suffice for the time being.

Who is doing the work?

We would like to do a lot ourselves and we've got a few contacts

we know that can come in and help out.

-My dad's in groundworks trading so he knows people.

-OK.

Mates rates!

Yes, fingers crossed. What is the timescale?

With Carrie having her operation, that will slow us down a bit,

so maybe a year.

I will be wheelchair-bound for a little while.

It's about a four-month recovery, because they're doing both my knees.

Carrie and Adam reckon that while this might slow them down a bit,

they hope their family and friends might all pitch in to help.

-Congratulations.

-Thank you.

We'll leave you to have a bit of a chat about things

and we wish you all the very best.

-Thank you.

-Good luck with it!

Well, there you go, you might not have expected

a young couple like Adam and Carrie to have bought this place,

but for lot of reasons for them, it is absolutely perfect.

How will they get on turning this into their home?

You can find out later in the show.

From young couples to old cities now.

We're crossing the Irish Sea to Belfast.

The city's story can be told through its architecture.

Once booming industries like linen

and ship building created the cityscape of grand buildings,

high cranes and the rows of terraces that housed the workers.

With the decline of industry, people started to move out of the area

and many of the houses fell into disrepair.

Nowadays, the value of these terraces are on the up and up

and people and communities are moving back into the area,

which is just five minutes from the city centre

with free parking to boot!

It's just off the Shankill Road

that I've come to see one such property.

In amongst the terraced houses that would once have housed

many of the industrial workers.

Well, it seems like a bargain

if it went for anywhere near the guide price of £22,000.

So, what have we got today?

It is a two-bedroom mid-terrace, it's got a back yard

and it looks pretty much in place.

I'm going to have a look around.

Well, these are good sturdy homes, not the largest in size

and one of the first things I think I would do

is to get rid of this oversized furniture.

It makes this room look absolutely tiny.

Also, a lot of textured wallpaper that makes the room look dated

so that would be quite to tough to strip off

but I think that has to go as well.

This is where this house gets rather interesting

because we have a pre-kitchen before we actually get to the real kitchen.

A nice space here with lots of units but here is the sink

and here is the cooker.

You've obviously got to try and sort that out

because it's just not working.

Then you've got this window here coming out to this lean-to.

In an ideal world, I would love to extend over here

and make this part of the kitchen, but I can see drainage there.

You will have to have a manhole cover in the kitchen

and I'm thinking about the ceiling price in this road.

To do all that work, to knock down walls,

you would certainly exceed that.

That's something you've got to be careful of in a cottage like this,

not to spend too much money.

If this were mine, I would certainly try to work within the space

you've got and make it work for you.

# We can work it out

# We can work it out

# Think of what you're saying, you can get it wrong

# And still think that it's all right... #

Upstairs and the unusual layout continues.

The bathroom is on the landing. It's an OK size but just needs updating.

Then, above your head is a very old-fashioned washing pulley

which I really rather like.

Then it's onto two good sized bedrooms

which may just need new decor and updating.

The back leads out to an old lane which would have been

full of washing lines in years gone by.

This little terrace is part of the industrial history of the area,

but can it has been modernised to fit in with today's Belfast?

With a guide price of just £22,000, it would be interesting to find out

what a local property expert can tell us.

There is significant work that is required.

There is no real kitchen to speak of which would be a high priority.

I would be suggesting maybe be a better structure,

a more solid structure for that kitchen extension.

It's no bad thing to have the space and something a bit more solid.

We are agreed then. But what about the area it's in?

We're in an area called the Lower Shankill

which is extremely close to Belfast city centre.

With its location, it really is the big selling point for this house.

Once renovation work has been carried out,

I would be recommending a valuation of between £45,000 and £50,000.

What about rental?

Rental-wise, I would be putting a valuation of between £375

and £400 per calendar month.

I think now is a good time to snap up these terraced bargains,

but you must be careful whatever you spend, you don't

exceed the ceiling price here because you could

so easily get carried away with the amount of work that needs doing.

Let's see what happened when it went auction.

Would someone like to get us away at the guide price of £22,000?

Is there 22,000? We have a proxy bid of 20,000.

Any advance on 20,000? 21.

We have 21. Is that 22 at the back?

We have 22 at the back of the hall.

Any advance on 22,000? All sure?

23.

23 at the front, any advance on 23,000?

Seated at the front at 23.

24 against you, sir. 25 at the back of the hall.

26. Selling at 26,000.

27 sitting at the side of the room.

28,000 we have seated.

Selling at 28,000. 29,000 at the back.

Any advance on £29,000?

30,000, we have £30,000 seated.

Can we say 31? We have 30,000 seated.

All sure? Last call at £30,000.

30,000 going once, 30,000 going twice.

Sold at 30,000.

Thank you.

The successful bidder was Robert, sat here with his mother, Myrtle.

The two are forming a mother and son team.

# When you get a chance, would you please call your mother? #

This is their first foray into property development.

I caught up with Robert back at the property to find out more.

-Robert, congratulations.

-Thank you.

-You paid £30,000 on auction day.

-Guide price, 22,000?

-We were right at our limit.

We bid hard, there were a few people bidding for it and 30,000

we had set as our limit so any other bids, we wouldn't have got it.

I know your mum is involved with this project with you?

She is indeed, yes.

She is providing the money and I am providing the know-how.

The money and the know-how, what a great A-team!

# Always be kind to your mother

# It's the greatest gift you can give! #

Robert is being kind to Myrtle by letting her take a back-seat

on the work so he will be doing the project managing.

With the ups and especially the downs in the market,

people need to think long and hard before investing money

and taking that risk.

-Do you see a slow recovery from the recession?

-Yes, definitely.

It has been slow and steady for the last couple of years now.

We're hoping it'll increase and if we sit on this property

for a short time, we will get a reasonable return.

But would you say your ceiling price is,

because you have to start there and work backwards?

We were thinking at the very most, we might get close to 50.

That might be a bit naive,

but we're hoping for somewhere close to that mark.

So you've got to work into that your profit

and how much you want to spend on the property?

Yes, to be honest, this is the first project.

We're not setting out to make heaps of money.

It's just to get it turned around and make a small profit

we'll be happy with.

A small profit should be very possible

and I like that Robert has realistic expectations.

However, after spending 30 grand, he has to renovate the house,

pay fees and make a profit out of the remaining 20,000.

He'll have to be careful.

So, now you've got it, what do you intend doing with it?

We've looked at quite a number of options.

We've looked at extending the kitchen right into the back yard.

We've looked at knocking this wall down so that we could just have

a kitchen at the back and one big living room.

Or else we're thinking of just doing up the kitchen here as it is.

The rest of the house would just be cosmetic.

So, come on, that's plan A, B, C, which one are you going to choose?

To knock these walls down, these are all supporting walls,

-so that could be quite costly.

-That's going to be very costly.

Also, out the back, if you do extend over the kitchen,

you've got the drainage to consider.

Yes, in the back yard,

we would end up digging it all up to sink all the drainage into the yard

and he would have to put in a new floor screed to bring it up level

with the existing kitchen,

so it would be a big job that would cost a lot of money.

That would cost you at least £20,000 and then there's your budget,

-your profit margin gone.

-Yes.

So, I think we have to leave that one.

I think Robert is right on that.

It's always a danger that you get too attached to a house

and the idea of making it fabulous.

But you can't do that if the profit margins become too small.

Doing the maths, making the right decisions

and then the hard bit, sticking to them, is the way to go here.

So, what are you going to do?

Leave this living room as it is, just decorate it.

This first kitchen, as it is.

Put a new kitchen in and the little back kitchen,

-just leave it as a utility room.

-What about upstairs?

Upstairs is pretty good.

We need a new bathroom, I think, to bring it up to date.

-The two bedrooms are in good order so they just need decorated.

-The budget?

HE SIGHS

Now you're looking down, now you're looking worried.

15 to 20?

15 to 20? But you've only got £20,000 profit anyway.

-Yes, that's true, well, 15.

-Now, I'm worried.

We will look at 10 to 12 to start with and see

if we can keep it down as low as that.

Let's hope he can because profit margins are looking tight.

Robert has a time frame of three to four months

and hopes to get it sold quickly.

But is that the best plan here?

My concern is that obviously you will do it up.

The ceiling price, as we discussed earlier, is up here.

You mustn't exceed that but if you held on to it for maybe

just a few years, the properties would rise so much in value.

We will look at that.

The other thing is, in this area, the rental market is very, very strong.

So we would rent it out very easily, I think,

if it was up to a reasonable standard.

One aspect to this house is the view from outside. It's not pretty.

This area of town has recently had a weak property market,

but as we said earlier, prices are increasing now

so I think that will encourage more development

and all this land will be fair game for further development.

Robert, lovely meeting you today. I'm excited to see what you do.

I'm keeping my fingers crossed that you do make a profit here.

-Good luck, we'll see you soon.

-Yes, thank you very much, see you soon.

I'm worried that Robert is doing a lot of work for very little profit.

But he is a project manager by trade so he might just surprise me.

Find out later if he does.

Still to come- in Lynemouth, is it a case of be careful what you wish for?

I didn't want to get a property where it was going to be walk in,

a quick spruce up and out.

-Whilst in Belfast, Robert digs his heels in.

-I'm sticking to my guns.

We're going to sell it on and then move onto the next project.

We float down river to South Derbyshire now

to the village of Willington where I met Carrie and Adam,

who were pleasantly shocked to buy their first home together

for £134,000.

I do love a bungalow and it was a pleasure to see this young couple

ready to take it on and transform it.

So, tell me, what are you going to do to the place?

There's a few walls we would like to knock out.

Just basically tart it up with new carpet or laminate throughout

and redoing the bathroom.

And kitchen.

We're hoping to knock through the kitchen wall

and make it into a large kitchen diner.

What about all these archways?

I think for the time being, money being restricted,

maybe leave it as it is.

Just paint it up, modernise it that way.

Then in the future, possibly, make it a bit less "arch-y"!

Not only was it a bit "arch-y", it was also a little peculiar

with a strange layout and the decor of a bygone era.

Carrie and Adam had a simple refurbishment plan

and hoped to get help from friends and family to keep the costs down.

We return ten months later.

By knocking through the wall between the kitchen and rear extension,

Adam and Carrie have created a wonderfully open

and flowing space that leads round into the living room.

Once dominated by dated archways, the living room is now modern

and comfortable and brighter, too, with an extra window added.

Our main problem really was light, we only had the one window.

With the extension, we were not getting enough light.

We wanted to make the room as light as possible.

We decided to add a second window so that has given us more light.

The fantastic transformation continues into the hallway

and three bedrooms.

The once dated decor is replaced with stylish floorboards

and a contemporary finish.

Along with a brand-new bathroom suite,

Adam and Carrie have gone above and beyond

what they originally set out to do,

with the kitchen being a real high point for me.

In the kitchen, one of the biggest jobs of the whole property,

this was a window here, a wall and a door.

We've knocked it all out and put in an RSJ

so we could create the space for the breakfast bar.

It's all a fitted kitchen, plenty of worktops and drawers

and the breakfast bar there.

So, we sit in and we have our meals there most of the time.

Outside, the couple removed the car port to create more light inside.

Unfortunately, bad weather has delayed work to the garden.

Whilst there is still work to be done to the inside,

the transformation here has really impressed me.

But how are Adam and Carrie feeling with the finishing line in sight?

-Awesome. Very good.

-Yeah, we're dead pleased with how it's turned out.

There are bits to do but we are really pleased with how it's gone.

After you left, we got on demolishing straightaway.

That took us for ever!

We got rid of everything in the house and we thought,

we're not going to get this house as empty as it is right now

so we might as well try and get everything done within budget.

We went over budget, but we scraped in where we could.

We did work that we could do ourselves to save money,

even just the painting and things and demolishing to save money.

We just thought, while it's in a mess, keep it in a mess.

Make as much mess as you're going to do and then it's done, isn't it?

We just thought, do it all while we're at it.

It makes sense to me, but with all the extra work done here,

is their original budget a distant memory?

-The budget doubled, I would say.

-Yeah, we originally said 13...

12 or 13,000 originally.

-It's 26.

-Yeah.

So we had money away from the sale of my other property,

and then we just used our wages every month.

So with all the extra work done

and taking into account Carrie's recovery

from her double knee operation, how on Earth have they managed?

-Good family and friends.

-Definitely.

We've had so much help, we can't thank them enough.

The amount of help we've had has been so good.

I've got loads of brothers who come round, my parents,

uncles, aunties and cousins. You are the same, aren't you?

My parents have done a lot, siblings,

even my grandma and gramps have been on it.

Carrie swore, when I first met her, that this was her for ever house

and she was never going to move again.

It will be interesting to see if their £160,000 investment here

would pay dividends, should she change your mind.

We invited two local estate agents along to have a look,

starting with the agent who saw it originally.

Yeah, they've made a nice job of the property, a good renovation.

Some of the attention to detail is a little bit lacking

but overall, the impression is very good.

The bathroom is lovely, really luxurious.

The kitchen is beautiful and I like the open plan aspect.

I think there are small parts which could have been done to

a slightly higher standard.

Carrie and Adam are aware that there are things still to be completed,

but it is going to be easier now they are living there.

So what about those valuations?

If I was to put this on the market,

I would put it on in the region of £170,000.

If we were putting this property on the market,

we would value it at £170,000.

This is our home now, we are quite happy here.

Selling is not of any interest at the moment.

It's nice to know we've not lost a load of money, though.

Spot on, Carrie! It would mean a pre-tax profit of £10,000.

And if they were renting,

the valuers suggest they could get a 5% yield.

But I've got the feeling that Carrie doesn't care two hoots.

I don't plan on moving house again if I can very much help it again.

Yeah, the same here.

Unless we get thousands of kids

-and we just need to get bigger and bigger.

-Why do you do that?

Well, not thousands, but there is now a baby on the way

and a wedding, too, so congratulations!

Time now to head over to Lynemouth in north-east England.

Situated on the estuary of the River Lyne, it was,

until 1926, no more than a farm and a cottage.

But the opening of a colliery caused a local expansion

and a town was born.

And although the two main coal mines in the area have

shut down, Lynemouth power station opened in 1972

and the recent development of wind farms nearby ensures the area

still has a future in energy production.

So what am I here to see? Well, very enticing.

£29,950 was the guide price.

It's not much but the property sounds fairly substantial.

A four-bedroomed mid-terrace.

Four bedroomed? How have they done that?

Let's find out.

Talk amongst yourselves, I've got a bit of a walk first!

# I'm walkin'

# Yes, indeed

# I'm talkin'

# About you and me

# I'm hopin'

# That you come back to me... #

Double glazing, that's a good start.

In fact, as is the fact it's got a radiator.

How do you get excited about that?

What it means is there's central heating and for £29,950,

you don't take anything for granted.

Stairs up to your bedrooms

and through into a really good-sized living area.

Not so sure the dark flooring works.

It makes it feel quite dark in here, surprise, surprise.

But, it's a good size.

Getting the double glazing, and then through into the kitchen.

You know, it's a good-sized house, isn't it?

Kitchen itself looks like it's half finished, but there are some

new units that might be salvageable.

Not sure about this though.

Shower room without a loo off the kitchen? Not ideal.

Intriguing.

Scampering through the kitchen after a shower is not what

I call modern living, but with the four bedrooms upstairs still

to be seen, maybe something can be worked out here.

And as for the loo, it can be found in what appears to be an

extension off the original back door and that in turn also leads outside.

So, little rear courtyard. You get to see the extension.

Not extensive but what you might want to consider doing,

is make it double-storey... Hang on a minute, what's that?

You know when you need that power in your shed

and you want to put an external supply in? Don't do it like this.

It's supposed to be armoured cable, all sorts of stuff.

It's a hole through the wall, a bit of plastic pipe,

not a trip hazard. That's brilliant. But, if you can get over that...

Out into this rear courtyard area and, you know what?

For a four-bedroomed property, it's not exactly a lot of space, is it?

# Is this all there is

# I wanted so much more

# The gold in those hills

# Is this all there is... #

It's all about proportions and layout with this house so far.

A huge front garden and a tiny back yard don't quite add up,

though the good bit is there is possible access for off-street

parking at the back and downstairs, there's a big living room.

But everything else is rather squashed and it does make me wonder.

So, how have they managed to cram four bedrooms into what is

a relatively small property?

Well, by creating this little landing here off which the four

bedrooms are situated.

One through there, one there, one there and one through there.

Clearly, what you've gained in numbers, you've lost in space.

All the bedrooms are relatively small apart from this

one, which is a decent size.

The only bad thing about this one is, it's got a boiler

situated in it, which, in a bedroom, is never good and at the very least,

that would definitely have to be serviced and checked out

to make sure it was functioning properly.

Do I like the four bedrooms?

Well, if you need four bedrooms, I suppose it works.

Personally, I think this should be put back to maybe a three or

even two-bedroomed property and take that toilet

and shower room from downstairs and bring it up here.

I don't think that would necessarily detract from the value

and actually, it would be a great thing to do.

It's definitely not working for me as it is.

Who would enjoy the current shower and loo arrangements?

I'm guessing not a family who would fill the four bedrooms.

So, does a local estate agent agree?

There's room for improvement

but no room for complaint with that guide price of £29,950.

It's traditionally a terraced property in a colliery area,

so it probably has had bathrooms extended, which is why

it's on the ground floor.

Originally, it wouldn't have had a bathroom.

It would have been a two-up, two-down type of terrace.

I would advise putting a bathroom or shower room on the first floor

and general decoration and re-carpeting.

So, we're both agreed.

The bathrooms should be upstairs but does the agent think that

sacrificing a bedroom would affect the resale value of the property?

I think whether or not the buyer chooses to lose

one of the smaller bedrooms

and make a first-floor bathroom out of that one,

or whether he chooses to refurbish what he's got and keep the four

bedrooms on the first floor, the value is likely to be very similar.

I would advise that he'd market the property in the region of £60,000.

Well, moving a bathroom up a floor isn't cheap,

so, if you were looking to sell this on, it wouldn't be worth your while.

Would the bathroom situation make any difference to the rent

this property could get?

Whether you went with three bedrooms and an upstairs bathroom

or left it in situ as a four-bedroom,

you'll be looking at about £400 per calendar month.

So, what do you think? Worth that £29,950 guide price?

Oh, yes, I think so.

Great little house, lots of space, not too much work to do.

Let's see who agreed when it went under the hammer.

It's a four-bedroom terraced property.

Anybody want to start at £30,000?

How about 26? The gentleman standing at £26,000.

Do I have 27 anywhere else?

27 right in the corner, 27,000.

28? 28,000, 28 bid. 29?

29 bid. 30?

30,000 bid. 31. Do I have 31 anywhere else?

The gentleman standing at £30,000. I'll take 500.

I'm selling once at 30,000, I'm selling for the second

and final time at £30,000.

Sold, gentleman standing.

And the successful bidder getting the lot for £30,000,

only £50 above the guide price was Dave.

Dave works as an electronics technician

and lives in nearby Ashington.

This house was his first ever auction purchase

and will also be his first renovation project.

Why, what and how was what I wanted to find out

when we met up back at the house for a chat.

-Dave, good to meet you.

-Hiya.

-Congratulations.

Tell me why you wanted to buy this place.

I suddenly decided, I was looking for a new house,

thinking about moving and it was taking for ever to do my house and...

"Can't be bothered. Not ready to move yet."

My money was sort of sitting in the bank doing nothing.

And I had been watching a few shows, property development nut,

I thought, "Give it a go."

This one came up.

Had a look at it, came down, thought, "Potential."

-I went to the auction and managed to get it.

-Got it.

Thinking about doing it up and selling it.

-So, why this particular house then?

-It seemed to have a lot of potential.

For the price I had bought this place for, and for the price doing

it up, it should be enough potential at the end for some decent profit.

Great. How was the auction for you?

-Erm... Quite calming actually, I found it enjoyable.

-Calming?!

-Yes.

I was quite calm at first.

Never, ever has anyone described an auction as calming!

I was quite calm about it until afterwards,

until I knew I'd won and then I started shaking!

So, how is he going to shake this place up?

It's four-bedroom at the moment but there is nothing upstairs,

bathroom-wise, so I'm going to convert to a three bedroom.

Put a bathroom upstairs.

I'll be bringing the boiler from the bedroom back downstairs,

-I don't like them in the bedrooms.

-It doesn't work well, does it?

-No.

Make the kitchen bigger by knocking the wall out where the bathroom is.

Moving the window along,

-thinking about putting patio doors or French doors.

-Yeah.

Going out in the garden,

-a bit of lawn and at the end, double gates, and off-street parking.

-Great.

Should be good.

"Good" is the word I'd use for Dave's plans.

I reckon he's got all the right solutions here

as well as a £15,000 renovation budget

and a three- to four-month timescale.

He will have a builder friend on hand to help him out

but having built a garage for himself, he is no stranger

to the world of extreme DIY and isn't afraid of any challenges.

In fact, he's looking forward to them.

Another reason I like this is

cos there's a lot of different parts to do.

I didn't want to get a property where it was going to be walk in,

quick spruce up and out.

I want to see what it's really going to be like,

it's not going to be easy.

It'll give us an idea of what doing property development is really about!

I think he's about to find out what it's all about,

but with his calm approach, I reckon he's going to be just fine.

This project isn't just about making his savings work better,

it's about a long-term goal for later on

when his career as an electronics technician comes to an end.

I've probably got about eight to nine years left in my current job.

The boss is virtually at retirement age now

and he said he'll stay on a bit longer.

And I'm thinking, "What can I do?"

I'm getting towards 50, so I'm getting a bit on.

And I thought, "Yeah, why not?"

Make a few properties, get them done, sell them

and with the profits get one where I can rent and slowly

but surely build up a portfolio that way of selling

-and renting properties, and comes good for my retirement.

-Yeah.

Well, Dave, great to meet you. Congratulations.

And good luck with it.

I think Dave's got himself a cracking property here

and the right ideas to sort it out.

How will he get on in his first development project?

You can find out later in the show.

Well, there are nearly always delays

when it comes to doing up property, so you really do need to factor

those into your calculations when it comes to timescale and budget.

So, have our buyers hit their deadlines? Let's find out.

Back over now to Northern Ireland

and the two-bedroom terrace that's just off the famous

Shankill Road and just five minutes from Belfast city centre.

It was bought for £30,000 at auction by first-time developer Robert

and his mother Myrtle.

I met project manager Robert back at the property, where his plans

and budget had me a little worried.

Your budget?

HE SIGHS

-See, now you're looking down. Now you're looking worried!

-15-20.

15-20, but you've only got 20,000 profit anyway!

Since the ceiling price for this house was 50,000, there was

a real danger that Robert would just get carried away

and blow his potential profit.

And I could see why he wanted to knock down walls,

especially with the bizarre layout at the back of the property.

Two months later, we've returned to find out how they got on.

The kitchen conundrum has been solved.

Not by knocking down walls

but by thinking cleverly about how to use the space.

What I thought of as a pre-kitchen has now clearly been

made into one which is definitely fit for purpose.

So, this is our new kitchen.

The original house didn't really have a fitted kitchen to speak of,

it was in a very poor state of repair.

We picked a lighter colour because it's a smaller space here

and there isn't much natural light. Like everywhere else in the house,

the walls had to be stripped and some plastering repaired.

And then some decoration and I put the floor down myself.

Overall we're very happy with kitchen

and we're hoping it'll help to sell the house.

What was the second half of the old kitchen is now a useful

utility area, that all makes much more sense.

At the back, the lean-to remains but it has been cleaned up

and just looks more inviting.

And upstairs, thankfully, it's curtains for the curtains.

Both bedrooms are looking brighter and so much more cheerful.

The bathroom has had a lot of work.

Robert has been clever here not to overspend.

There was quite a nice old bath here originally.

So we decided not to take it out but just get it re-enamelled.

Overall, we are very pleased with how it has turned out,

we tried to keep it fairly light and plain.

Because it is quite a small space.

But we're quite happy with it.

I'm glad to see that Robert has kept this renovation relatively simple,

meaning he'll be able to maximise any potential profit.

His budget was a bit uncertain when we met, but he has ended up working

on this project full-time, so that in itself is a great money-saver.

In the end, we did OK with the budget.

We had originally tried to be a little bit pessimistic

about how much we'd end up spending

but in the end we kept it to 8,000, which was pretty good.

That includes all fees.

Well, £8,000 is a pretty good outcome as far as I can see.

He's been firm on his spend even in the face of the unexpected.

Some of the problems and challenges we face now,

the walls were in a pretty poor state of repair,

whenever we went to remove the wallpaper

we found that there were, in some rooms, five layers of wallpaper.

Which took a lot of scraping off and even after

we had it all scraped off, the walls were pretty poor state of repair

so we ended up doing a lot more plastering than we had planned to do.

Robert did jobs like tiling and replacing stair banisters.

And he project-managed the work, too.

We got tradesmen in to fit new windows and fit the kitchen

and we got a plumber in to do the bathroom.

And a plasterer and then I got a painter decorator that I know

to come and give us a hand with the painting and decorating.

I've also had help from family, so my mum

and my sister were here most days as well, helping me paint and decorate.

By using his project manager experience, Robert not only kept

costs down, but managed to complete the work in just two months.

A month quicker than expected.

But what I want to know is, what about Robert's mum Myrtle?

Is she keen on the finished article?

My mum is very pleased with the results, as well. Yes.

I let her pick all the colours and coordinate the...

the look of the house.

Well, Mum knows best, Robert.

Originally the estate agent and I agreed that it would be

better to sit on this property and rent it for a while

before selling. But Robert and his mum were keen on selling.

-Is this still the case?

-I'm sticking to my guns.

We're going to sell it on. And then move onto the next project.

Well, would the agent who saw it the first time be persuaded that

Robert is right, and what will another agent think of this

property in which Robert

and his mother Myrtle have invested a total of £38,000?

There is a vast difference between my first visit and my second visit.

Internally, it is like a different house.

Kitchen particularly and bathroom are the key areas for a lot of

people, so he's done those really well and they're really smart.

In my opinion, I would probably rent for a few years

and then hope that the value would rise over that period.

For rental value, I would estimate between £400 and 425

per calendar month.

Per calendar month rental would probably be for 425-450.

Taking an average of £425pcm,

that would mean a possible rental yield

of a whopping 13%.

Will Robert be persuaded to rent?

Uh, rental value of £425-£450 sounds quite good,

erm...but I think we will still be looking to sell the house.

Well, in that case, with a purchase price of £30,000

and a spend of eight grand, totalling £38,000,

what could the house sell for?

If I were putting this onto the market,

I would probably be asking, I would say,

probably something around £45,000.

For resale value,

I would estimate the valuation to be between £45,000 and £50,000.

That top figure of £50,000

would give them a potential pre-tax profit of £12,000.

Robert did say he would be happy to achieve a small profit

when he set out on this

and that's not bad for two months' work.

So, will the mother-and-son team be doing another property together?

Yes, we would be interested in doing this again.

It all went fairly well, it's been a good experience,

so I think we would be back at the next auction

after we get this house sold.

Lynemouth in Northumberland

is where we first saw this four-bedroomed house

which was, well...well, it was OK.

It had a good-sized front garden,

but a slightly disappointing back yard.

It had four bedrooms, but no upstairs bathroom,

just a shower room downstairs and an odd separate bathroom

and a decent-sized lounge and kitchen,

but not in great shape.

So, it posed a few challenges

and for local electronics technician Dave,

that's just what he wanted from his first property purchase.

# And you're gonna find out the hard way

# You take the hard way

# Gonna take the hard way... #

I didn't want to get a property where it was going to be walk in,

quick spruce up and out.

I wanted to see what it's really going to be like.

It's not going to be easy, um...

It'll give us an idea of what doing property development's really about.

So, Dave wasn't one for an easy life

and having bought the property for 30,000,

he was hoping that a budget of 15,000

and a three- to four-month timescale

could transform the house.

But how hard could it be?

Well, nearly five months later, we're back to find out.

Well, the lawn's been cut and the front's tidied up.

But come on, Dave - you wanted to challenge yourself.

Using a lawn mower hardly counts.

We basically had to strip the whole house

and start from scratch.

Ah! That's more like it - a "ground up" renovation.

Much more testing.

Judging by the front lounge and kitchen,

it's a challenge he's relished.

Downstairs, in the kitchen area,

we decided to completely strip out the kitchen.

We had a small bathroom area which basically just had a shower in,

so we got rid of the shower

and made everything into a kitchen-diner,

so the family can all have a meal together.

Well, it might be a bigger and better kitchen,

but where now is the bathroom?

The upstairs layout just wasn't working.

None of the doors opened the correct way.

There was no bathroom, four bedrooms. It was just a mess.

I sat down with the builder,

he drew up a plan and came out with three bedrooms and an en-suite

and a big bathroom.

I also thought there were too many rooms squeezed in here

and Dave has done a great job

turning it into a really well-proportioned three-bed.

With one of the bedrooms now en suite

and a good-sized family bathroom,

I think Dave has greatly improved this house.

He has just to sort out the rear yard now.

Uh, there is still plans to put a car-parking area out at the back,

but...I might leave that until I sell the house.

The new owners may decide just to leave it as a garden

or they may want a car-parking area so I can do that.

Well, that may be one job he's left for a later date

but he certainly hasn't gone for the easy option here.

Dave wanted to do a more comprehensive refurbishment,

not just to get a better property,

but to learn about the development process.

So what has he learned?

I've got to be more hands-on.

I stood back and let other people do the work

and tried to manage the situations that arise

and I found out you can't really do that -

you've got to be hands-on, you've got to be here,

you've got to step in and you've got to get in with the work.

Yes, he's dead right - keeping on top of everything is key

and in this case, there were problems with plastering

and a lack of coordinating with the tradesmen,

causing delays in work being done,

which I'm sure wasn't good for his £15,000 budget, either.

Uh, we had to go slightly over-budget, by about £7,000.

A £7,000 overspend

takes his original £15,000 budget

to £22,000.

With the £30,000 he paid for the house in the first place,

his total spend is £52,000.

So, has learning the hard way paid off?

What did two local estate agents think?

First, the agent who saw it originally.

First impressions, it looks much more spacious and clean,

replastered walls, ready to move into.

The property's done to a very high standard

with the bathroom and the en-suite

and the large open-plan kitchen.

I think it's been much improved

by deciding to go with three bedrooms upstairs

and installing a family bathroom to that floor.

David ideally wants to sell the house,

but, if necessary, he would consider renting it out.

I would recommend a rental price of between £425-£450pcm.

This property would rent between £450-£475pcm.

That was the price I was expecting, about £450, so that's spot-on.

£450pcm would generate a yield above 10% -

that's not too shabby.

But how would his £52,000 investment fare on the current resale market?

I would recommend an asking price in the region of £75,000,

looking to achieve between £65,000-£70,000 sale price.

This property would be put on the market

for between £70,000-£75,000

to achieve close to the asking price.

That's good, cos I was looking at between...68 and 70,

so that's slightly higher than I first thought.

Well, that's a potential pre-tax profit

of between £13,000-£23,000.

Not bad as a first property project.

So, is he glad he took it on?

It was a really worthwhile project.

I wanted something to get my teeth into

and there's been a lot of problems, but everything's been overcome,

so at least next time I know what to look for

and hopefully, I can do a better job.

Well, that's what happened to the buyers on today's show

but anything can - and often does - happen on Planet Property.

So, make sure you join us next time for more Homes Under The Hammer.

-We'll see you, then.

-Goodbye.

-Goodbye.