0:00:02 > 0:00:05Well, the temperature's pretty nice today, but it's really difficult
0:00:05 > 0:00:07sometimes to tell the temperature of the property market.
0:00:07 > 0:00:10You have to judge whether it's blowing hot or cold.
0:00:10 > 0:00:14And one way you can do that is to visit your local property auction.
0:00:40 > 0:00:42When you go to an auction, you can soon tell whether there's
0:00:42 > 0:00:46confidence in the market or everybody's playing a cautious game.
0:00:46 > 0:00:49Yes, it's a very revealing snapshot of what's going on
0:00:49 > 0:00:50in the property world,
0:00:50 > 0:00:54so let's see what properties went up for auction today.
0:00:54 > 0:00:58In southwest London, I find, or rather can't find,
0:00:58 > 0:00:59a bit of a problem.
0:00:59 > 0:01:04The weird thing is, I still haven't come across the bathroom and the loo.
0:01:04 > 0:01:06And talking of problems, in Northumberland,
0:01:06 > 0:01:08well, there aren't any.
0:01:08 > 0:01:10You see? All auction properties aren't rundown,
0:01:10 > 0:01:13dishevelled places that need completely rebuilding.
0:01:15 > 0:01:17Whilst here in Folkestone,
0:01:17 > 0:01:20will buying this house prove to be a backwards step?
0:01:20 > 0:01:22Actually...whoa!
0:01:22 > 0:01:24Come and have a look at this...
0:01:25 > 0:01:28'All these properties have been sold at auction
0:01:28 > 0:01:30'and we'll find out who bought them and what they paid for them
0:01:30 > 0:01:32'when they went under the hammer.'
0:01:32 > 0:01:33Sold!
0:01:36 > 0:01:37Today, I'm in Fulham,
0:01:37 > 0:01:42a lovely part of southwest London that I never tire of visiting.
0:01:42 > 0:01:43It's a prime London spot neighbouring
0:01:43 > 0:01:47the likes of Kensington and Chelsea, and has certainly been known
0:01:47 > 0:01:50to attract the odd notable resident or two.
0:01:50 > 0:01:55Fulham also benefits from a long river frontage beside the Thames.
0:01:55 > 0:01:58Now rife with luxurious riverside apartments
0:01:58 > 0:02:01and perfect for a leisurely walk, a gentle jog, or, perhaps,
0:02:01 > 0:02:04a bike ride in the warmer months.
0:02:04 > 0:02:08There's no questioning the fact that Fulham floats my boat.
0:02:08 > 0:02:10And, unlike other parts of the country,
0:02:10 > 0:02:14the Fulham housing market remains very buoyant.
0:02:14 > 0:02:18The property I'm here to see is only a few minutes' walk from that
0:02:18 > 0:02:21lovely riverside walkway, and it's located along this
0:02:21 > 0:02:25quiet residential road with attractive terraced properties.
0:02:25 > 0:02:26They're gorgeous!
0:02:26 > 0:02:30Now, with local amenities literally a few minutes walk that way,
0:02:30 > 0:02:34well, you can't argue with this sought-after location.
0:02:34 > 0:02:38I always get excited when a Fulham property comes up at an auction,
0:02:38 > 0:02:42and, today, I'm here to see a two-bedroom ground floor garden flat
0:02:42 > 0:02:46with a guide pride of £375,000.
0:02:48 > 0:02:52OK, so it's not quite as pleasing as its grand neighbours,
0:02:52 > 0:02:55but I am still fairly excited to take a look around.
0:02:57 > 0:03:02The front door gives access to two flats off a shared hallway.
0:03:02 > 0:03:06Well, what you lack in character, you certainly make up for in space
0:03:06 > 0:03:10with these flats. It's got a really nice lounge area to the front.
0:03:10 > 0:03:13I've noticed the metal-framed windows are still in place,
0:03:13 > 0:03:16I'd like to see them changed and some double-glazed units put in.
0:03:16 > 0:03:22We've got a bedroom here and a rather green hallway. Do I look ill?
0:03:22 > 0:03:24I feel the colour is reflecting on me.
0:03:24 > 0:03:29Now, towards the back, we've got a rather strange place for a bedroom.
0:03:29 > 0:03:32It's not really working for me, pull-down beds,
0:03:32 > 0:03:35and that's because it leads straight into the kitchen.
0:03:35 > 0:03:39A very small kitchen indeed and it's lilac!
0:03:39 > 0:03:42Oh, the paint palette in this flat leaves a lot to be desired, but
0:03:42 > 0:03:46the weird thing is, I still haven't come across the bathroom and the loo.
0:03:46 > 0:03:48This way.
0:03:48 > 0:03:52# Gotta keep searchin', searchin' Find a place to stay
0:03:52 > 0:03:54# Searchin', searchin'... #
0:03:54 > 0:03:59So far, the layout of this flat, which was guided at 375,000,
0:03:59 > 0:04:02just feels a bit wrong to me...rooms off corridors
0:04:02 > 0:04:06and the kitchen off this room, but my searching's paid off. Ha-ha!
0:04:06 > 0:04:08I've found the bathroom.
0:04:08 > 0:04:10# Gotta keep searchin', searchin', wee-ooh... #
0:04:10 > 0:04:14Go through the kitchen to an area that feels like an outbuilding
0:04:14 > 0:04:16and there it is.
0:04:16 > 0:04:20It's going to need a total rip-out and refit, like the kitchen,
0:04:20 > 0:04:22but I'd be looking to redesign the whole footprint
0:04:22 > 0:04:23at the back of this flat,
0:04:23 > 0:04:27and you're going to need to install central heating, you're going to
0:04:27 > 0:04:32need to rewire, and I'd think about changing those 1950s fireplaces too.
0:04:32 > 0:04:36There's wasted space from a blocked up staircase between the kitchen
0:04:36 > 0:04:40and bedroom, which once would have allowed the first floor access
0:04:40 > 0:04:44to the garden. Did I say garden?! In London?! Yes, I did.
0:04:44 > 0:04:46Things are certainly looking up.
0:04:46 > 0:04:50Wow! Just look at the size of this garden.
0:04:50 > 0:04:54Any kind of outside space is at a premium in London
0:04:54 > 0:04:57and this is not just a small rear yard.
0:04:57 > 0:05:00Excitingly, this also gives us options for
0:05:00 > 0:05:02improving the size of the flat.
0:05:02 > 0:05:05My thoughts are that you could extend over the side return
0:05:05 > 0:05:08and also further out here to the rear.
0:05:09 > 0:05:12That would give you a much bigger footprint to play with.
0:05:12 > 0:05:15Then the bathroom could be moved to the bedroom next to the kitchen,
0:05:15 > 0:05:18the front lounge would become your second bedroom and,
0:05:18 > 0:05:20with a lovely new extension at the back,
0:05:20 > 0:05:24you could have an open plan living area with access straight out onto
0:05:24 > 0:05:29that huge garden, with, perhaps, a patio for those summer barbies.
0:05:29 > 0:05:33OK, a big upside here. So, what's the downside?
0:05:33 > 0:05:36I'm afraid there's more than one.
0:05:36 > 0:05:39So, you might only be moments away from the River Thames, but, just
0:05:39 > 0:05:43down the road, you'll also encounter Fulham's football stadium,
0:05:43 > 0:05:48which has a capacity of over 25,000 people.
0:05:48 > 0:05:51Great news if you're a football fan, but not so much to cheer about
0:05:51 > 0:05:54if you want to park your car here on a match day.
0:05:54 > 0:05:58Now, if the buyer of this property hasn't done their homework,
0:05:58 > 0:06:01this could be an unexpected own goal for them.
0:06:03 > 0:06:06Restrictions mean that you can't park outside your own property
0:06:06 > 0:06:12between 9am and 9.30pm on match days. Not very convenient!
0:06:12 > 0:06:17Now, downside number two, the lease. There's only 77 years left on it.
0:06:17 > 0:06:20You're getting close to the 70-year mark at which it can be very hard
0:06:20 > 0:06:25to get a mortgage. Extending it could be an option, but at a price.
0:06:25 > 0:06:28Then, of course, there's the usual issue with a leasehold property.
0:06:28 > 0:06:32Will the freeholder let you make changes you want to make?
0:06:32 > 0:06:37So, a lot to consider there. What does the local estate agent think?
0:06:37 > 0:06:40Having had a look around the flat today, actually, although it seems
0:06:40 > 0:06:43like it needs a lot of work, it's actually a fantastic project.
0:06:43 > 0:06:45We're in a location called the Alphabets, which is
0:06:45 > 0:06:48a part of the Bishops Park Conservation Area in Fulham.
0:06:48 > 0:06:50The implications of it being a conservation area are that
0:06:50 > 0:06:54you need to look into the planning regulations so you don't change
0:06:54 > 0:06:56any aesthetic that would go against planning.
0:06:56 > 0:06:58OK, just another thing to think about.
0:06:58 > 0:07:01So, is this flat worth tackling, particularly
0:07:01 > 0:07:04if you could get all the permissions to extend it?
0:07:04 > 0:07:06What would it be worth?
0:07:06 > 0:07:08If the property was fully extended and renovated,
0:07:08 > 0:07:13with a long lease, I would expect it to achieve no less than £775,000.
0:07:13 > 0:07:17What about the value without an extension and just a refurbishment?
0:07:17 > 0:07:20If the property was renovated, leaving its shape the same,
0:07:20 > 0:07:23then I would expect it to achieve no less than £600,000.
0:07:23 > 0:07:27And the rental comparisons, with or without an extension?
0:07:27 > 0:07:30If the property was renovated in its current size,
0:07:30 > 0:07:33I would expect it to achieve £1,700 per calendar month.
0:07:33 > 0:07:35If the property was fully extended,
0:07:35 > 0:07:38I would expect it to achieve £2,100 per calendar month.
0:07:40 > 0:07:44This Fulham flat is full of potential.
0:07:44 > 0:07:45Make the right decisions
0:07:45 > 0:07:49and you could really reap the financial rewards.
0:07:49 > 0:07:52However, you certainly need money to make money with this one,
0:07:52 > 0:07:56and, despite the lovely location, there's a penalty to be paid
0:07:56 > 0:08:00when buying something so close to a major stadium.
0:08:00 > 0:08:05Let's see who decided to tackle this property on auction day.
0:08:05 > 0:08:07Ground floor flat, Fulham, SW6.
0:08:07 > 0:08:09350.
0:08:10 > 0:08:13350. 355.
0:08:13 > 0:08:16355 at the back. 360.
0:08:16 > 0:08:18365.
0:08:18 > 0:08:20Yeah, 370.
0:08:20 > 0:08:22375.
0:08:22 > 0:08:23380.
0:08:23 > 0:08:25385.
0:08:25 > 0:08:27390.
0:08:27 > 0:08:28395.
0:08:28 > 0:08:30400.
0:08:30 > 0:08:32405.
0:08:32 > 0:08:35Anyone else? I'll take 401 at the back.
0:08:35 > 0:08:38401, sir. 402.
0:08:38 > 0:08:40402. 403.
0:08:41 > 0:08:43404.
0:08:43 > 0:08:45405.
0:08:45 > 0:08:47406.
0:08:47 > 0:08:50406, new spot. 407.
0:08:50 > 0:08:53410. 411.
0:08:53 > 0:08:54412.
0:08:54 > 0:08:57412. 413.
0:08:57 > 0:08:58414.
0:08:59 > 0:09:02415, yeah? 416.
0:09:02 > 0:09:05417.
0:09:05 > 0:09:0720? 421.
0:09:08 > 0:09:11422?
0:09:11 > 0:09:14If not, 421, first time,
0:09:14 > 0:09:18second time, third and last time. Have you all done?
0:09:18 > 0:09:20Sold. 421.
0:09:21 > 0:09:26That final bid of 421,000 was made by Tim...
0:09:27 > 0:09:30..who has a business partner, Dan.
0:09:30 > 0:09:33However, it was Tim and their builder, Jason, who came
0:09:33 > 0:09:36along to meet me at the property, which is Tim's second auction buy.
0:09:36 > 0:09:41Tim is from Australia and has been developing since late 2012.
0:09:41 > 0:09:43Tim and Jason, great to meet you guys today.
0:09:43 > 0:09:46I love the location of this flat. I mean, how fabulous.
0:09:46 > 0:09:48You are right on top of the river.
0:09:48 > 0:09:51Yeah, I know, it's fantastic, I mean, as far as down by the river,
0:09:51 > 0:09:53you've got people basically going down there with their dogs,
0:09:53 > 0:09:57you've got people jogging, a lot of people riding these days as well, so
0:09:57 > 0:10:00it's a perfect distance there and it's also really nice and quiet.
0:10:00 > 0:10:03So, what did you do prior to becoming a property developer in Australia?
0:10:03 > 0:10:06Well, I was actually studying in Australia. I'm still studying for
0:10:06 > 0:10:09my Master's as well, that's in marketing, cos that
0:10:09 > 0:10:11gives me a good insight as far as trying to pick some places,
0:10:11 > 0:10:15do a lot of research on the places and getting it to sell at the end, really.
0:10:15 > 0:10:18So, Jason, you're here to sprinkle the fairy dust!
0:10:18 > 0:10:22I am, I'm going to try and make the place look slightly better than it does at the moment.
0:10:22 > 0:10:24What are you going to do to really turn this place around?
0:10:24 > 0:10:26Um, it needs a complete rewire.
0:10:26 > 0:10:31It needs some central heating, plaster all the way through,
0:10:31 > 0:10:33colours, palettes, new doors...
0:10:33 > 0:10:36- We're going to try and make it look great.- New doors?!- Oh, yeah.
0:10:36 > 0:10:39Now, see, I love... There's not much character in this flat at all,
0:10:39 > 0:10:43but I would say those doors are lovely. They're so expensive to buy
0:10:43 > 0:10:46brand-new. Have a think about that one, Tim.
0:10:46 > 0:10:49I think we will. I mean, certainly, it's also about not only
0:10:49 > 0:10:51the doors, but I really love the fireplaces as well.
0:10:51 > 0:10:54- They've got a lot of character... - You like these fireplaces?
0:10:54 > 0:10:58- I think they've got a lot of character.- We're going to have an argument!- Oh, I love this!
0:10:58 > 0:11:00I'll tell you what we'll do, we'll compromise on the doors,
0:11:00 > 0:11:03- you can keep your doors, but they're doing.- Jason, Jason!
0:11:03 > 0:11:07- I'm sorry, but I'm with Jason on that one!- Well, there we go.
0:11:07 > 0:11:09We'll see what happens in the end.
0:11:09 > 0:11:11Well, I hope Jason and I win this one.
0:11:11 > 0:11:15Something about the '50s was not so fabulous in my opinion.
0:11:15 > 0:11:18They've just got to go. No, seriously, they HAVE got to go!
0:11:18 > 0:11:21So, tell me, in an ideal world, how you would like to address
0:11:21 > 0:11:24the layout here? Because it just doesn't work as it is at the moment.
0:11:24 > 0:11:26Subject to the right permissions,
0:11:26 > 0:11:28remove the staircase at the back that is literally a staircase
0:11:28 > 0:11:32to nowhere, and then move the bathroom through
0:11:32 > 0:11:37and open up the entire back area through to a new conservatory,
0:11:37 > 0:11:39letting quite a lot more light down the hallway.
0:11:39 > 0:11:43And how many bedrooms do you hope to squeeze into this property?
0:11:43 > 0:11:46Well, at the moment, we've actually got two bedrooms, as it stands.
0:11:46 > 0:11:50There is a possibility of possibly making it into a third bedroom, but,
0:11:50 > 0:11:53at the moment, we're basically going to decide between two of the options,
0:11:53 > 0:11:56either going for the third bedroom or either going for, basically, a
0:11:56 > 0:12:00much bigger bathroom, which will give a lot more space down to the end.
0:12:00 > 0:12:02# The bigger the better, the bigger the better
0:12:02 > 0:12:05# The better the bigger... #
0:12:05 > 0:12:10The plan is to do this flat up for resale, but, before they even start,
0:12:10 > 0:12:14Tim and Dan have already demolished one of the flat's downsides.
0:12:14 > 0:12:20They've spent £14,000 extending that 77-year lease to 99 years.
0:12:20 > 0:12:24Smart move, boys. So, how much more are they planning to spend?
0:12:24 > 0:12:27Well, basically, the budget, we're looking around the 55,000 mark,
0:12:27 > 0:12:30pretty much topping out to 60.
0:12:30 > 0:12:32Certainly, I think we'll be able to achieve that.
0:12:32 > 0:12:35Guys, I can't wait to see what it's like when it's finished.
0:12:35 > 0:12:37- Good luck with this project. - Thank you.- Thank you.
0:12:37 > 0:12:41Tim and his builder Jason have a lot of work to do
0:12:41 > 0:12:44and they really need to improve that layout.
0:12:44 > 0:12:46Will they manage to create that third bedroom
0:12:46 > 0:12:49and still come in within their budget?
0:12:49 > 0:12:52You can find out how the boys get on later on in the show.
0:12:55 > 0:12:58Well, it looks like Tim and Jason have a battle on their hands
0:12:58 > 0:13:02to sort the layout in the flat, and I've come to a place which has
0:13:02 > 0:13:05had its own share of battles over the years.
0:13:06 > 0:13:08I'm in the town of Ponteland,
0:13:08 > 0:13:12about eight miles northwest of Newcastle upon Tyne, so it's
0:13:12 > 0:13:17easily commutable, and yet, you've got all these lovely surroundings.
0:13:17 > 0:13:20But, it's also got a very turbulent past.
0:13:23 > 0:13:27In the 14th century, Scotland and England were at war, and this area
0:13:27 > 0:13:29was on the front line
0:13:29 > 0:13:34and the Ponteland Pele Tower was one of many built along the borders,
0:13:34 > 0:13:38on top of which fires would be lit to warn of impending danger.
0:13:38 > 0:13:40The local villagers would also run in here
0:13:40 > 0:13:44and huddle together to shelter from the invasion of marauding troops.
0:13:46 > 0:13:50So, what kind of shelter am I seeking out today?
0:13:50 > 0:13:56Well, for a guide price of £99,950 plus...
0:13:56 > 0:14:00up for auction was this, a two-bedroomed cottage.
0:14:00 > 0:14:03Looks charming from the outside. Let's take a look inside.
0:14:07 > 0:14:08Mmm! It's looks good.
0:14:09 > 0:14:11Nice sort of neutral colour scheme
0:14:11 > 0:14:14and the stairs up to your bedrooms there.
0:14:14 > 0:14:16Into the front lounge, double-glazing,
0:14:16 > 0:14:23it's got a nice feel to it. Yeah, straightaway I like it. Oh! Ha-ha!
0:14:23 > 0:14:28That takes me back to student days. The old iron mark on carpet.
0:14:28 > 0:14:34It's a trick, yeah! Oops! So, new carpet required, but look at this!
0:14:34 > 0:14:36At the back of the property,
0:14:36 > 0:14:40a really good-sized kitchen with ample space there
0:14:40 > 0:14:43for a kitchen table or a dining table.
0:14:43 > 0:14:47Yeah, what a nice, nice, nice space, and it gets better,
0:14:47 > 0:14:50because through here, a little bit of a utility room,
0:14:50 > 0:14:53downstairs loo, somewhere for your washer and drier.
0:14:53 > 0:14:57Straightaway, a very liveable house.
0:14:57 > 0:15:00# Say, hey, good lookin'
0:15:00 > 0:15:02# What ya got cookin'?
0:15:02 > 0:15:07# Well, how's about cooking somethin' up with me? #
0:15:07 > 0:15:10Yes, this looks like there's all the ingredients here for
0:15:10 > 0:15:12a pretty together house.
0:15:12 > 0:15:16A great-sized kitchen with dining space, a good lounge,
0:15:16 > 0:15:20and then there's the added bonus of that utility area.
0:15:20 > 0:15:23Outside, there is a slightly disappointing yard,
0:15:23 > 0:15:25but there is parking at the rear.
0:15:25 > 0:15:27# Say, hey, good lookin'... #
0:15:27 > 0:15:33Nice wooden banister. Does the loveliness continue upstairs though?
0:15:33 > 0:15:34Yeah, I think it does.
0:15:34 > 0:15:39A lovely bathroom, fairly recent, nice white suite.
0:15:39 > 0:15:43Um, and then two decent-sized double bedrooms.
0:15:43 > 0:15:45I mean, it could do with a lick of paint. Um...
0:15:48 > 0:15:52Well, that's it. I mean, you could rent this out pretty much as it is,
0:15:52 > 0:15:56or just move into it. Ideal. You see!
0:15:56 > 0:15:58All auction properties aren't run down,
0:15:58 > 0:16:02dishevelled places that need completely rebuilding. There!
0:16:03 > 0:16:05# You're lookin' good
0:16:06 > 0:16:09# You're lookin' so good
0:16:09 > 0:16:12# All right, you're lookin' good
0:16:12 > 0:16:15# Like I knew that you would. #
0:16:15 > 0:16:17Don't worry, you haven't missed anything.
0:16:17 > 0:16:21These really are the before shots, not the afters.
0:16:21 > 0:16:24I'm really struggling to find much wrong with this place.
0:16:24 > 0:16:28A quick make-over inside, and I think maybe the front could be given
0:16:28 > 0:16:31a bit more kerb appeal. The fence and the front garden are
0:16:31 > 0:16:35looking slightly sorry for themselves, but that's it.
0:16:35 > 0:16:38The only downside might be that it's hard to add value to a house
0:16:38 > 0:16:41that was guided just below £100,000.
0:16:43 > 0:16:46But what does a local estate agent think?
0:16:49 > 0:16:52This is a very nice two-bedroomed mid-terrace cottage,
0:16:52 > 0:16:56formerly a railway cottage, in the centre of the village,
0:16:56 > 0:17:00close to all amenities, the park, and the sports facilities.
0:17:02 > 0:17:05The property just has it all and that's what worries me.
0:17:05 > 0:17:08Would there be any room to add value?
0:17:08 > 0:17:13The yard itself is very plain just now, but provides off-street parking.
0:17:13 > 0:17:17It could be changed to make a nice patio garden.
0:17:17 > 0:17:20OK, so there are a few things to be done, but could this house,
0:17:20 > 0:17:23guided just below 100,000, work as an investment?
0:17:25 > 0:17:28This house, once fully refurbished, should be
0:17:28 > 0:17:30worth in the region of £130,000.
0:17:31 > 0:17:33And as a rental property?
0:17:33 > 0:17:36This house should achieve somewhere in the region of
0:17:36 > 0:17:37£595 per calendar month.
0:17:43 > 0:17:45Well, what a charming little property,
0:17:45 > 0:17:48and you could literally move into it as it is.
0:17:48 > 0:17:52I'm sure a very popular lot when it went under the hammer.
0:17:54 > 0:17:56How about 98?
0:17:56 > 0:17:5898,000, the gentleman sitting down.
0:17:59 > 0:18:00Do I have 100 anywhere else?
0:18:00 > 0:18:03100,000, sitting. Thank you. 102.
0:18:03 > 0:18:06No? 101. 101 bid.
0:18:06 > 0:18:08102.
0:18:08 > 0:18:10102 bid. 103.
0:18:10 > 0:18:13103. 104.
0:18:13 > 0:18:15104 bid. 105.
0:18:16 > 0:18:18105 bid. 106.
0:18:20 > 0:18:23106, new bidder. 107.
0:18:23 > 0:18:27107 bid. 108. 108 bid. 109.
0:18:27 > 0:18:31No. So, 108 sitting down. 108-and-a-half then.
0:18:31 > 0:18:35108-and-a-half bid. I'll take 500 off you as well for 109.
0:18:35 > 0:18:37I'm going one to 108-and-a-half.
0:18:37 > 0:18:41I'm going for the second time of £108,500.
0:18:41 > 0:18:43Sold to the gentleman sitting down.
0:18:43 > 0:18:48'And so, for £108,500, the successful bid was made
0:18:48 > 0:18:52'by Brett on behalf of his partner, Ruth.
0:18:52 > 0:18:55'Ruth and Brett live on the coast 18 miles away
0:18:55 > 0:18:59'from the house in Whitley Bay, and Ruth works as a support worker'
0:18:59 > 0:19:04in a residential home for adults with learning difficulties.
0:19:04 > 0:19:06She took off some time to meet me to tell me
0:19:06 > 0:19:10why she bought this former railway cottage.
0:19:10 > 0:19:13- Congratulations.- Thank you very much.- Uh, you must be delighted.
0:19:13 > 0:19:15I am, actually, yeah.
0:19:15 > 0:19:18Very delighted, because I didn't know what it was like inside.
0:19:18 > 0:19:19How do you mean?
0:19:19 > 0:19:21- Cos I hadn't viewed it.- Why?
0:19:21 > 0:19:24Because I didn't really intend to go and buy it that night.
0:19:24 > 0:19:28I mean, obviously, I did make sure that I had enough money to
0:19:28 > 0:19:31- pay the initial deposit.- And what about the rest of the money?
0:19:31 > 0:19:34Well, I think I've probably nearly got that together now.
0:19:34 > 0:19:35What do you mean, "nearly"?!
0:19:35 > 0:19:37Well, I didn't have my finances in place either.
0:19:37 > 0:19:41- Any more rules you're going to break?- Probably lots.
0:19:41 > 0:19:43So, have you got your finances yet?
0:19:43 > 0:19:46Um, I'm going to the solicitors tomorrow to sign everything.
0:19:46 > 0:19:49- So, no, in other words.- Well, yeah, but I'm sure it'll be fine.
0:19:50 > 0:19:54Thankfully, Ruth isn't quite as fly-by-night as it seems.
0:19:54 > 0:19:57She has a buy-to-let mortgage pending and has also used her
0:19:57 > 0:20:02own savings and a loan from her mother to secure the property.
0:20:03 > 0:20:05# When I set my mind to it
0:20:05 > 0:20:07# There ain't no doubt I can
0:20:07 > 0:20:11# Cos I'm breaking all the rules
0:20:11 > 0:20:13# Doing it my way, anyway I choose to... #
0:20:13 > 0:20:17And this isn't the first time Ruth has done this.
0:20:17 > 0:20:20The property she currently lives in, she bought at auction.
0:20:20 > 0:20:24Didn't view it, and didn't have all her finances in place either.
0:20:24 > 0:20:27It seems she's a repeat offender when it comes to
0:20:27 > 0:20:33rule-breaking on property buying, not something I'd advise at all.
0:20:33 > 0:20:35# This girl's breaking all the rules... #
0:20:37 > 0:20:41So, when you tell me about a whim, at what point did this whim occur?
0:20:41 > 0:20:46Well, I'd seen it in the paper and I got home at about five,
0:20:46 > 0:20:50and I thought, "Hmm, will I go for a run or will I go to the auction?"
0:20:50 > 0:20:52It was this or a run, as in a jog thing?
0:20:52 > 0:20:55Uh-huh, I do a little bit of jogging, you know.
0:20:55 > 0:20:58- The Great North Run, have you heard of that?- Oh, yeah.
0:20:58 > 0:20:59Well, that was coming up.
0:20:59 > 0:21:01It was, like, two weeks after the auction
0:21:01 > 0:21:04and I was trying to cram in a bit of training.
0:21:04 > 0:21:06Wow, that's like a half-marathon, isn't it?
0:21:06 > 0:21:09I've done it a lot of times. I'm quite fit for an old woman!
0:21:09 > 0:21:11- How many times have you...? - That was my 29th.
0:21:11 > 0:21:1329th time?! Wow!
0:21:14 > 0:21:20# Run for home, run as fast as I can
0:21:20 > 0:21:22# Woo-ooh
0:21:22 > 0:21:26# Running man, running for home... #
0:21:26 > 0:21:29So, Ruth traded a run for a home. Wow!
0:21:29 > 0:21:33And, in this case, it doesn't look like a marathon or even
0:21:33 > 0:21:38a half-marathon effort to get this place sorted, or even a gentle jog.
0:21:38 > 0:21:42The only thing she might break sweat over is those finances.
0:21:42 > 0:21:44What was it that, um,
0:21:44 > 0:21:47appealed so much about this place that you took such risks?
0:21:47 > 0:21:49It's quite cheap for Ponteland.
0:21:49 > 0:21:52I know the property, you know, although I hadn't seen it,
0:21:52 > 0:21:55I've lived round here most of my life.
0:21:55 > 0:21:59- Um, my grandmother actually grew up in the house next door.- No!
0:21:59 > 0:22:02Yes, yeah. Her father worked on the station.
0:22:02 > 0:22:04So, did you visit her when she was there?
0:22:04 > 0:22:07No, no, because she left when she were...
0:22:07 > 0:22:09She was 28, I think, when she got married.
0:22:09 > 0:22:12So, why were you so keen to buy it?
0:22:12 > 0:22:14Well, I thought maybe my mother might come and live here
0:22:14 > 0:22:18because she lives about four miles up the road.
0:22:18 > 0:22:20Um, she's just had a hip replacement,
0:22:20 > 0:22:22but I don't think she wants to at the minute.
0:22:22 > 0:22:26I think maybe later cos she's driving again now, so, maybe I might move in.
0:22:26 > 0:22:28- You might move in? - I might, mm-hm.
0:22:28 > 0:22:32How are you going to decide what you're going to do to the place?
0:22:32 > 0:22:36Um, I think, initially, I will probably just decorate it, um,
0:22:36 > 0:22:39maybe check to see if there is any real problems, you know,
0:22:39 > 0:22:41like structural things.
0:22:41 > 0:22:45My partner's a builder, so he will come and check it out,
0:22:45 > 0:22:47cos he hasn't seen it yet either.
0:22:47 > 0:22:50- Huh!- But I think, initially, I'll just decorate
0:22:50 > 0:22:53- and maybe rent it out for a while, while I decide what to do.- Right.
0:22:53 > 0:22:56So, at this stage, it's just going to be a lick of paint, is it?
0:22:56 > 0:22:59I think so. Maybe carpets.
0:22:59 > 0:23:01Is there any budget at all to do what you're planning?
0:23:01 > 0:23:05There might be a little bit. I could probably spend up to £2,000.
0:23:05 > 0:23:08What would be the deciding factor on whether or not you move in?
0:23:08 > 0:23:12Well, if I do move in, I don't think my partner will come with us,
0:23:12 > 0:23:15because he doesn't want to live up here, so...
0:23:15 > 0:23:16Is that? Uh...?
0:23:16 > 0:23:18That doesn't mean that I would not see him any more,
0:23:18 > 0:23:24but I think he would maybe stay nearer and I would maybe come here.
0:23:24 > 0:23:28- It sounds like a fairly big life decision there.- Oh!
0:23:28 > 0:23:30Have you mentioned this little...?
0:23:30 > 0:23:32I have mentioned it, yeah, that I might live here.
0:23:32 > 0:23:35Cos I was going to say, if he sees this on telly and goes,
0:23:35 > 0:23:37"Hang on a minute!
0:23:37 > 0:23:38"Where is she?!"
0:23:38 > 0:23:40I probably would tell him first.
0:23:40 > 0:23:42I think he'd probably notice.
0:23:42 > 0:23:44"I thought you'd been a long time with me tea!"
0:23:44 > 0:23:46Well, he probably thinks I won't do it, but I might.
0:23:46 > 0:23:49Oh, OK, well, we wait with bated breath.
0:23:49 > 0:23:51Yeah, well, I'm sure you'll find out when you come back.
0:23:51 > 0:23:55Well, yes, absolutely. Um, good luck with it all.
0:23:55 > 0:23:57- Thank you very much. - Lovely to meet you.
0:24:00 > 0:24:02Well, it's all quite humorous, however...
0:24:03 > 0:24:07..buying property without reading the legal pack is bad enough,
0:24:07 > 0:24:11but not having your finances sorted out is absolutely...
0:24:13 > 0:24:15..just asking for so many problems.
0:24:15 > 0:24:19It seems like Ruth has got away with it, not quite sure what she's
0:24:19 > 0:24:22going to do with the place, I don't think she is either.
0:24:22 > 0:24:25The only way to find out is to join us later in the show.
0:24:27 > 0:24:28Coming up, in Kent,
0:24:28 > 0:24:32this Folkestone house will need to be completely checked out.
0:24:32 > 0:24:34Because they are worrying signs!
0:24:37 > 0:24:40And we meet Ruth's rule-breaking accomplice.
0:24:40 > 0:24:43She's actually done it twice now.
0:24:43 > 0:24:46Actually, funny enough, both times, I've been with her.
0:24:48 > 0:24:53But, first, we return to the rather desirable area of Fulham in London
0:24:53 > 0:24:56where we came across a slightly less than desirable
0:24:56 > 0:24:59two-bed ground floor garden flat.
0:24:59 > 0:25:02It wasn't just that it was really in need of a full refurbishment,
0:25:02 > 0:25:05it was more the fact that the layout...well,
0:25:05 > 0:25:06it really wasn't working.
0:25:06 > 0:25:10Wasted corridor space...cubbyholes, odd-shaped rooms,
0:25:10 > 0:25:14and there was a rear garden that could have been made more of.
0:25:14 > 0:25:15# A change...
0:25:15 > 0:25:17# A change will do you good
0:25:17 > 0:25:18# ..will do you good
0:25:18 > 0:25:21# A change will do you good... #
0:25:23 > 0:25:24There were other niggles.
0:25:24 > 0:25:27It came with a relatively short lease
0:25:27 > 0:25:29and there were parking restrictions because of the flat's
0:25:29 > 0:25:34proximity to a football stadium, but the layout was the big issue to be
0:25:34 > 0:25:37tackled before this flat could hold its own in the high-end
0:25:37 > 0:25:39of the Fulham market.
0:25:40 > 0:25:45- Sold, 421.- And it was bought for the not-so-insignificant sum
0:25:45 > 0:25:49of 421,000 by Australian-born Tim in conjunction with
0:25:49 > 0:25:53his business partner, Dan, as their second development project.
0:25:53 > 0:25:57And Tim and his builder, Jason, were keen to alter that messy old layout.
0:25:57 > 0:26:00- # A change... - A change will do you good... #
0:26:00 > 0:26:03So, tell me, in an ideal world, how would you like to address
0:26:03 > 0:26:06the layout here? Because it just doesn't work as it is at the moment.
0:26:06 > 0:26:09No, you're right. I'd like to move the bathroom through
0:26:09 > 0:26:13and open up the entire back area through to a new conservatory.
0:26:13 > 0:26:17And how many bedrooms do you hope to squeeze into this property?
0:26:17 > 0:26:20Well, at the moment, we've actually got two bedrooms as it stands.
0:26:20 > 0:26:23There is a possibility of possibly making it into a third bedroom.
0:26:23 > 0:26:24Uh, but, at the moment,
0:26:24 > 0:26:27we're just basically going to decide between two of the options.
0:26:27 > 0:26:31Either going for the third bedroom or either going for a much bigger
0:26:31 > 0:26:35bathroom, which will give a lot more space down to the end.
0:26:35 > 0:26:38Tim was keen not just to change the layout, he was also planning
0:26:38 > 0:26:43a top-spec finish, and therefore had a healthy £60,000 budget,
0:26:43 > 0:26:46and he was hoping Jason would be able to turn
0:26:46 > 0:26:48it around in three to four months.
0:26:50 > 0:26:55But now, over ten months later, we're back with Tim to see if,
0:26:55 > 0:26:57at last, it comes up to spec.
0:27:01 > 0:27:04That's a crisper exterior, with new doors and windows,
0:27:04 > 0:27:07but it was inside where the work was really needed.
0:27:08 > 0:27:12Well, the front room has been fully renovated and central heating
0:27:12 > 0:27:15installed, while that funny little corridor bedroom
0:27:15 > 0:27:18has now been converted to a storage area.
0:27:20 > 0:27:22And a great modern family bathroom.
0:27:23 > 0:27:28The bedroom at the rear, well, that's definitely improved now.
0:27:28 > 0:27:30It's even got its own en-suite.
0:27:31 > 0:27:34But what's lurking at the back of the flat?
0:27:40 > 0:27:43Wow! That's not a conservatory!
0:27:43 > 0:27:48That's one full-blown fantastic extension. I love it!
0:27:48 > 0:27:52With a top-spec kitchen and loads of living space, complete with
0:27:52 > 0:27:57bi-folding doors out to a revamped low-maintenance garden.
0:27:57 > 0:28:00Just what's needed! It's all very impressive.
0:28:00 > 0:28:02So, why the change of plan?
0:28:03 > 0:28:07Basically, the reason why we decided to go for an extension rather
0:28:07 > 0:28:10than a conservatory is pretty much maximising the use of space.
0:28:10 > 0:28:12And, as far as the area in Fulham
0:28:12 > 0:28:14and what people basically want in a kitchen
0:28:14 > 0:28:17and what people want in an entertaining area, it really is
0:28:17 > 0:28:20necessary, and really a conservatory just wouldn't have been good enough.
0:28:20 > 0:28:24I have to say, I agree with you, Tim, and this addition has moved the
0:28:24 > 0:28:29flat from being ordinary to special and into the next price bracket.
0:28:29 > 0:28:32With the change of plan also came a change of builders,
0:28:32 > 0:28:36with his previous builder, Jason, deciding this size of project
0:28:36 > 0:28:39and the time it was going to take just didn't fit in with other
0:28:39 > 0:28:40work commitments.
0:28:40 > 0:28:43But it's not only his original builder that's gone.
0:28:43 > 0:28:45Well, as far as keeping any of the original features,
0:28:45 > 0:28:47like the fireplaces and the doors,
0:28:47 > 0:28:50we did actually get rid of the fireplaces and we not only got
0:28:50 > 0:28:52rid of them, but we actually hollowed them out as well, basically,
0:28:52 > 0:28:54to create a bit more space.
0:28:54 > 0:28:55As far as the doors go,
0:28:55 > 0:28:57we were actually quite keen to actually keep them,
0:28:57 > 0:29:00cos they were a lovely original feature,
0:29:00 > 0:29:03but the main reason is they were a little bit warped
0:29:03 > 0:29:05and as far as fire regulations to make sure that they
0:29:05 > 0:29:07covered that, they didn't actually come up to scratch.
0:29:09 > 0:29:12Well, I for one am glad to see the back of the fireplaces,
0:29:12 > 0:29:14and the doors...well,
0:29:14 > 0:29:19with the finishing look that Tim was after, I can see why they went too.
0:29:19 > 0:29:22But what was Tim's main role here?
0:29:22 > 0:29:23Pretty much just running around,
0:29:23 > 0:29:27trying to source all the equipment, all of the materials,
0:29:27 > 0:29:30deal with all the legal side, with the accountant,
0:29:30 > 0:29:33with the surveyor, with the architect, with the lawyers,
0:29:33 > 0:29:37with the council. So, really, I've just been running around,
0:29:37 > 0:29:39so busy doing all these sorts of things,
0:29:39 > 0:29:41and I've been backwards and forwards from Australia,
0:29:41 > 0:29:44basically finishing my Master's in marketing, that's almost done,
0:29:44 > 0:29:49so it's been very, very busy doing this as well as doing that.
0:29:49 > 0:29:52Tim makes popping back to Australia sound like he's
0:29:52 > 0:29:53popping down the shops
0:29:53 > 0:29:56rather than to the other side of the world, but I suspect,
0:29:56 > 0:30:00like his Air Miles, he's clocked up some serious amounts of money
0:30:00 > 0:30:01getting this renovation done.
0:30:01 > 0:30:04Originally, we were thinking about 60,000, but, in the end,
0:30:04 > 0:30:08we actually ended up doubling our budget, which was basically 120,000.
0:30:08 > 0:30:11Obviously, there's a huge amount more costing
0:30:11 > 0:30:14as far as the extension, and, also, we had the lease extended,
0:30:14 > 0:30:15so that way anyone can get a loan,
0:30:15 > 0:30:19which basically came at £14,000, and, also, obviously, the finish.
0:30:19 > 0:30:20We wanted a nice high finish,
0:30:20 > 0:30:22so they're the sort of costings as well.
0:30:24 > 0:30:26The finish is fantastic,
0:30:26 > 0:30:29so I'm not surprised they blew the original budget.
0:30:29 > 0:30:34That 120,000 now takes his and his business partner Dan's outlay
0:30:34 > 0:30:39to a total of 541,000 for what is just a two-bed flat,
0:30:39 > 0:30:42albeit a very nice two-bed flat.
0:30:42 > 0:30:45So, will it hit the right mark for the local market?
0:30:46 > 0:30:49What do two property experts think?
0:30:49 > 0:30:51I'm absolutely blown away with the changes, I think
0:30:51 > 0:30:54they've done a phenomenal job, the finish is extremely high and they've
0:30:54 > 0:30:56created a wonderful flat.
0:30:56 > 0:30:59First impressions...is, I suppose, it's quality.
0:30:59 > 0:31:01So, flooring really nice,
0:31:01 > 0:31:03light switches, tiles...
0:31:03 > 0:31:06It feels like someone's taken care into the finish.
0:31:06 > 0:31:08It will really pay off when it comes to market.
0:31:08 > 0:31:11I think the extension was absolutely the right thing to do.
0:31:11 > 0:31:13They've managed to incorporate excellent light and space,
0:31:13 > 0:31:16used the full width of the property, and the opulence they've
0:31:16 > 0:31:19brought into the rear addition is fantastic.
0:31:19 > 0:31:21Ideally, Tim and business partner Dan want to sell
0:31:21 > 0:31:27their £541,000 investment, but how would it fare on the rental market?
0:31:27 > 0:31:29This property, on the rental market,
0:31:29 > 0:31:32would achieve £1,950 per calendar month.
0:31:32 > 0:31:34I think rental value on this flat will be
0:31:34 > 0:31:38£2,000 to £2,200 per calendar month.
0:31:38 > 0:31:42Around two grand a month rental would generate an annual yield of
0:31:42 > 0:31:46around 4%, but, really, it's the resale that's key here.
0:31:46 > 0:31:48Can there really be money in a two-bed garden flat
0:31:48 > 0:31:51when you spend £541,000 on it?
0:31:52 > 0:31:55If this property was to go onto the market for resale,
0:31:55 > 0:31:58I would expect it to achieve no less than £850,000.
0:31:58 > 0:32:03I think the resale on this property will be £850,000 plus.
0:32:04 > 0:32:07Well, that is incredible.
0:32:07 > 0:32:11That's a potential pre-tax profit of £309,000.
0:32:12 > 0:32:13What does Tim make of that?
0:32:15 > 0:32:19Wow, I mean, 850,000, that's really amazing, I mean,
0:32:19 > 0:32:21I wasn't expecting we'd get that sort of price for this property,
0:32:21 > 0:32:25but, yeah, in the end, I think it really shows we're very vindicated
0:32:25 > 0:32:29by the extra work we've put in and certainly with the extension.
0:32:30 > 0:32:34Yes, sometimes aiming high can get you the best rewards,
0:32:34 > 0:32:37particularly in the current buoyant London market,
0:32:37 > 0:32:41though the potentially substantial profit will be split two ways.
0:32:41 > 0:32:45Is Tim now ready to put his feet up and enjoy the fruits of his labour?
0:32:45 > 0:32:48Well, as much as it would be nice to lie on a beach somewhere,
0:32:48 > 0:32:51unfortunately, that's not the case. Pretty much, if we want to keep this
0:32:51 > 0:32:54going with the business, I really think we should be straight back
0:32:54 > 0:32:56into the options and trying to get the next property.
0:33:00 > 0:33:04Wow! That really was some project in Fulham and that potential profit
0:33:04 > 0:33:07is making my head whirl. I still can't believe it.
0:33:07 > 0:33:08I need somewhere to calm down,
0:33:08 > 0:33:12and where better than a trip down to the coast?
0:33:12 > 0:33:14This is Folkestone in Kent.
0:33:14 > 0:33:17Once a small fishing village, all that changed in the 1840s
0:33:17 > 0:33:21when the harbour was dredged and the railways arrived.
0:33:21 > 0:33:25Suddenly, trade and tourists flocked to Folkestone and the area boomed.
0:33:27 > 0:33:30Although the industry in Folkestone has faded over time,
0:33:30 > 0:33:34it's still full of day-trippers in the summer months enjoying
0:33:34 > 0:33:39the beach and the reasonably new creative quarter, a regenerated area
0:33:39 > 0:33:43of the old town now buzzing with artists, shops and cafes.
0:33:45 > 0:33:48Folkestone really is a lovely little town, which bodes
0:33:48 > 0:33:52well for our property today as it's a mere ten-minute walk away.
0:33:52 > 0:33:56The property I'm here to see is standard auction fare.
0:33:56 > 0:33:59It's this two-bedroom mid-terrace which had a guide price
0:33:59 > 0:34:03of £65,000 to £75,000. I'm going to check it out.
0:34:07 > 0:34:09Well, dated, as I'd expected,
0:34:09 > 0:34:12but nothing a little bit of elbow grease can't remedy and,
0:34:12 > 0:34:14if gas central heating is high on your hit list,
0:34:14 > 0:34:17you've got to take note that you've got storage heaters here,
0:34:17 > 0:34:20but let's go through and see what the space is like in here.
0:34:20 > 0:34:24Fantastic! Now, the good news is that somebody's already
0:34:24 > 0:34:26taken the time to knock this wall down
0:34:26 > 0:34:27and put an RSJ in the middle,
0:34:27 > 0:34:30but, what I really like is that you've a double aspect room,
0:34:30 > 0:34:34two big windows either end letting loads and loads of light in.
0:34:34 > 0:34:38But, um, something that's drawing me to the end of this room and,
0:34:38 > 0:34:42actually...whoa! Come and have a look at this.
0:34:42 > 0:34:45Now, usually, I'd expect to feel a sort of spring,
0:34:45 > 0:34:48the joists may have gone, but come down here.
0:34:49 > 0:34:54That is almost like the floor has just dropped.
0:34:57 > 0:34:59# Slide away
0:34:59 > 0:35:00# And give it all you've got... #
0:35:02 > 0:35:06A sloping floor can be a sign of a big, costly problem,
0:35:06 > 0:35:08but that's just the start of it.
0:35:09 > 0:35:12Now, this also really worries me.
0:35:12 > 0:35:16Look at that crack! Absolutely huge.
0:35:16 > 0:35:19And over here, another one the same
0:35:19 > 0:35:22and it goes right the way across the ceiling.
0:35:23 > 0:35:26If there's one thing I might advise anybody
0:35:26 > 0:35:29when they look at property before bidding at auction -
0:35:29 > 0:35:31get a survey done, or get somebody round
0:35:31 > 0:35:37who knows about stuff like this, because they are worrying signs.
0:35:37 > 0:35:42# There may be trouble ahead... #
0:35:43 > 0:35:45A sloping floor and big cracks in the wall
0:35:45 > 0:35:50could very well be signs of - you guessed it - subsidence.
0:35:50 > 0:35:54Get that surveyor on speed dial, pronto.
0:35:54 > 0:35:58# Let's face the music and dance... #
0:35:59 > 0:36:02The kitchen at the back needs modernising...
0:36:02 > 0:36:04Oh - hello, serving hatch!
0:36:08 > 0:36:11It's a good size, though, and leads out into the nice
0:36:11 > 0:36:13but small back garden.
0:36:13 > 0:36:15However, what's this?
0:36:15 > 0:36:17Signs of damp on the rear wall,
0:36:17 > 0:36:20which may well have a bearing on what's happened inside.
0:36:24 > 0:36:28Upstairs you have a very dated bathroom to the back,
0:36:28 > 0:36:31and in the middle bedroom - yes, sadly you CAN see the cracks,
0:36:31 > 0:36:34they continue from the living room. Ouch.
0:36:37 > 0:36:40The front bedroom, while a great size,
0:36:40 > 0:36:43also has its own assortment of cracks and crevices.
0:36:44 > 0:36:48Whether this is an investment opportunity or a potential nightmare
0:36:48 > 0:36:50is something I need to chew over.
0:36:50 > 0:36:53Talking of which, I need cake!
0:36:55 > 0:36:58So, could this property make you some instant cash?
0:36:58 > 0:37:01This is still a reasonably low-value area, and I don't think
0:37:01 > 0:37:05the renovated house would achieve much more than you'd spend on it.
0:37:05 > 0:37:07But just look around you -
0:37:07 > 0:37:11Folkestone has really changed over recent years, and the town feels bright and hopeful.
0:37:11 > 0:37:17So maybe, this is one to keep hold of in case the future gets even sunnier.
0:37:19 > 0:37:22In case you think that's the sugar rush talking,
0:37:22 > 0:37:23we asked a local estate agent
0:37:23 > 0:37:25for his opinion on this crumbly two-bed terrace.
0:37:30 > 0:37:33This house is very worn and very tired, but ripe for a complete
0:37:33 > 0:37:36make-over and repair,
0:37:36 > 0:37:38redecoration and modernisation.
0:37:38 > 0:37:42But with a guide price of 65,000 to 75,000,
0:37:42 > 0:37:45what might this house be worth once fully refurbished?
0:37:45 > 0:37:50Refurbished, the value rises to probably £125,000 to £130,000.
0:37:50 > 0:37:52Now, hang on,
0:37:52 > 0:37:55I know you may be thinking, sounds like a whacking great profit
0:37:55 > 0:37:57for a refurbishment and sell-on job -
0:37:57 > 0:37:59but what you have to take on board here
0:37:59 > 0:38:01is the fact that you're not just talking about
0:38:01 > 0:38:03new windows, kitchens and bathrooms,
0:38:03 > 0:38:06central heating and redecoration,
0:38:06 > 0:38:10there could really be major structural issues to fix.
0:38:10 > 0:38:13If that's the route the buyers choose, it's about
0:38:13 > 0:38:17not overpaying at auction, and about keeping those renovation costs down.
0:38:17 > 0:38:20For me, though, it's waiting for an upturn in the market,
0:38:20 > 0:38:22and renting in the meantime -
0:38:22 > 0:38:25I think that is what makes most sense.
0:38:25 > 0:38:27Fully refurbished, the rental value here
0:38:27 > 0:38:31will be about £550 to £600 per calendar month.
0:38:32 > 0:38:33It needs a lot of work
0:38:33 > 0:38:36but I reckon this house could be a wonderful little renter,
0:38:36 > 0:38:39near an extremely charming part of town.
0:38:39 > 0:38:43Well, let's see who was swept away by this seaside home at the auction.
0:38:46 > 0:38:49It's a two-bedroom house for total refurbishment,
0:38:49 > 0:38:51and it's a good-looking house from the outside.
0:38:51 > 0:38:54Start me where you will, doesn't matter where we start -
0:38:54 > 0:38:5765 to go? 65, I'm on the way.
0:38:57 > 0:38:58I have 65 and I should think so too.
0:38:58 > 0:39:01At 68 now, do I see? 68, do I see?
0:39:01 > 0:39:04I'll take two if it'll make a difference. 67?
0:39:04 > 0:39:0767, I'm obliged. 67 I've got.
0:39:07 > 0:39:0968 now. 68 I have.
0:39:09 > 0:39:1169, it's against you.
0:39:11 > 0:39:14At 70,000, can I say?
0:39:14 > 0:39:17£70,000, I've got. 71 now?
0:39:17 > 0:39:1971, may I see? 71.
0:39:19 > 0:39:2272... 72...
0:39:22 > 0:39:24Come on, for another £1,000.
0:39:24 > 0:39:2772,000? 72. 73...?
0:39:27 > 0:39:30If not, at £72,000 at the back for the first time,
0:39:30 > 0:39:33£72,000 for the second time...
0:39:33 > 0:39:36Third and final time at £72,000, are we all done?
0:39:36 > 0:39:38- HAMMER BANGS - Yours at the back at 72, and thank you.
0:39:38 > 0:39:42Stuck at the back with his successful bid of 72,000
0:39:42 > 0:39:45is Andy, who was at the auction with his son Lee.
0:39:45 > 0:39:49# When the going gets tough, the tough get going... #
0:39:50 > 0:39:54The pair run a family business adapting homes for the disabled.
0:39:54 > 0:39:56They're builders by trade,
0:39:56 > 0:40:00and will need every bit of the experience for this property.
0:40:01 > 0:40:05- Lee and Andy, congratulations, you must be so pleased you got this on auction day.- Yeah.- We are, yes.
0:40:05 > 0:40:09- Whose idea was it?- Mine, really.
0:40:09 > 0:40:10It was just I had a lack of work coming in
0:40:10 > 0:40:16so we just decided to put money together and see what we can do.
0:40:16 > 0:40:18What was it about this house that took your eye?
0:40:18 > 0:40:21I think actually the layout of the house was one,
0:40:21 > 0:40:23two, the amount of work that's required
0:40:23 > 0:40:27to bring it up to a good standard.
0:40:27 > 0:40:31There's windows to do, there's the kitchen we're going to refurbish,
0:40:31 > 0:40:33the bathroom upstairs,
0:40:33 > 0:40:35there's damp problems we're going to attend to.
0:40:35 > 0:40:38On the whole the property itself,
0:40:38 > 0:40:42like most houses you get a little bit of movement, you get a little bit of cracks.
0:40:42 > 0:40:45We understand that, we're in the building game.
0:40:45 > 0:40:48So we can address them, and address them to a fairly good standard.
0:40:49 > 0:40:51These two are experienced.
0:40:51 > 0:40:54They're both qualified electricians,
0:40:54 > 0:40:58and have gone into this with their eyes wide open.
0:40:58 > 0:41:01Lee's been working with his dad since he was 16,
0:41:01 > 0:41:03and it's that working relationship and their combined experience
0:41:03 > 0:41:06that will be invaluable in this project.
0:41:09 > 0:41:11Can we have a chat about the floor,
0:41:11 > 0:41:13and why I'm wanting to go like that...?
0:41:13 > 0:41:15Because it just leans that way.
0:41:15 > 0:41:19We feel a lot of it's through damp, from upstairs.
0:41:19 > 0:41:22The gutters haven't been sealed properly
0:41:22 > 0:41:25and literally the water's been cascading down the wall,
0:41:25 > 0:41:28and it's made all the kitchen damp and
0:41:28 > 0:41:30obviously the ends of the joists that
0:41:30 > 0:41:33were supposedly attached to the wall...
0:41:33 > 0:41:36Have the cracks got anything to do with that?
0:41:36 > 0:41:38I don't think the cracks have anything major to do with that.
0:41:38 > 0:41:41When you get consistent all the way down cracks,
0:41:41 > 0:41:44you often find that part of the building has moved,
0:41:44 > 0:41:47but not tilting away or subsiding.
0:41:47 > 0:41:50In this particular case here obviously
0:41:50 > 0:41:52this wall HAS moved,
0:41:52 > 0:41:56but at the same time obviously the actual movement itself is not a vast amount.
0:41:56 > 0:42:00So you don't think that's subsidence, you think it's just due to damp?
0:42:00 > 0:42:02Just movement and damp, yeah.
0:42:02 > 0:42:04Now, are you going to get that investigated further?
0:42:04 > 0:42:07Not necessarily at this point here, but what I will do
0:42:07 > 0:42:08is I will open that floor up completely,
0:42:08 > 0:42:11and in most cases that I've found through experience
0:42:11 > 0:42:13where there's been so much damp you would get rot,
0:42:13 > 0:42:15and it's the end of the joists that's rotten.
0:42:15 > 0:42:17When I do open it up, if I see that there is
0:42:17 > 0:42:20any structural problem or anything I need to address, then I will do.
0:42:20 > 0:42:23Andy and Lee won't know for sure
0:42:23 > 0:42:26until they've started lifting those floorboards.
0:42:26 > 0:42:30Thankfully, they have all the skills required for a job like this,
0:42:30 > 0:42:35but, new kitchen, new bathroom, new windows, total refurb -
0:42:35 > 0:42:37what's their budget?
0:42:37 > 0:42:39Cos we're doing the work ourselves we're looking at roughly
0:42:39 > 0:42:42between £12,000 and £15,000.
0:42:42 > 0:42:44OK. And are you intending to be here full time?
0:42:44 > 0:42:46- Full time. Yeah.- One of us.
0:42:46 > 0:42:49Cos we're going to keep the other part of the firm going as well.
0:42:49 > 0:42:51And then you'll swap over, so one will be here on site,
0:42:51 > 0:42:53- somebody else will be at home with the business.- Right.
0:42:53 > 0:42:57How long do you think it's going to take you until you've completed the job?
0:42:57 > 0:43:02Well, we're looking at possibly between 10 and 16 weeks.
0:43:02 > 0:43:04Do you want to put this house on the market and sell it?
0:43:04 > 0:43:07We're going to wait until after we've done it.
0:43:07 > 0:43:10We would like to put it on the market -
0:43:10 > 0:43:13we'll take the option that obviously if it doesn't come to the price
0:43:13 > 0:43:16that we would like, we will then look at the rent.
0:43:16 > 0:43:18Lee and Andy, good luck with this project.
0:43:18 > 0:43:22I can't wait to find out if everything runs smoothly. Well done.
0:43:22 > 0:43:24- Thank you very much.- Thank you. - Thank you very much.
0:43:24 > 0:43:28Andy and Lee are the perfect pair to take this place on -
0:43:28 > 0:43:31calm, composed and unfazed
0:43:31 > 0:43:36by the potentially major structural issues this house has.
0:43:36 > 0:43:39You can find out how it all goes later in the show.
0:43:42 > 0:43:44Well, it's time now to go back to those properties
0:43:44 > 0:43:46and see how the new owners have got on.
0:43:46 > 0:43:50Yes, did they manage to stick to their timescales and budgets? Let's find out.
0:43:54 > 0:43:58It was in the old Northumberland town of Ponteland where we first saw
0:43:58 > 0:44:03a two-bed terraced house that was, well, pretty together really.
0:44:03 > 0:44:05There was the odd marked carpet,
0:44:05 > 0:44:07a front garden that could do with a tidy-up,
0:44:07 > 0:44:10but other than that a bit of elbow grease,
0:44:10 > 0:44:12a lick of paint and job done.
0:44:15 > 0:44:18Not that support worker Ruth knew any of this
0:44:18 > 0:44:22when she bought it at auction for £108,500,
0:44:22 > 0:44:25with her partner Brett bidding on her behalf.
0:44:25 > 0:44:28# Cos she don't play
0:44:28 > 0:44:31# She don't play by the rules... #
0:44:32 > 0:44:36- You must be delighted. - I am, actually. Very delighted.
0:44:36 > 0:44:39- Because I didn't know what it was like inside.- How do you mean?
0:44:39 > 0:44:40- Cos I hadn't viewed it.- Why?
0:44:40 > 0:44:44Because I didn't really intend to go and buy it that night,
0:44:44 > 0:44:47but...I just went on a whim.
0:44:47 > 0:44:49I mean, obviously I did make sure that
0:44:49 > 0:44:53I had enough money to pay, you know, the initial deposit.
0:44:53 > 0:44:55And what about the rest of the money?
0:44:55 > 0:44:57I think I've probably nearly got that together.
0:44:57 > 0:44:59What you mean, "nearly"?!
0:44:59 > 0:45:01I didn't have my finances in place either.
0:45:01 > 0:45:05- How many more rules are you going to break?- Probably lots!
0:45:05 > 0:45:07# I said, she don't play
0:45:07 > 0:45:10# She don't play by the rules... #
0:45:11 > 0:45:13Yep - a blind purchase
0:45:13 > 0:45:17and no funding in place is NOT the recommended approach.
0:45:17 > 0:45:20And because it was bought on a whim, Ruth didn't really
0:45:20 > 0:45:24have a clear idea of what she was going to do with the house.
0:45:24 > 0:45:27Her mother might move in, she might move in.
0:45:27 > 0:45:30She might sell it, she might rent it. Who knows?
0:45:30 > 0:45:34So, nearly three months on, are things any clearer?
0:45:38 > 0:45:43Well, the front area has been tidied up, so SOMETHING'S been happening.
0:45:43 > 0:45:45It's been a very good one.
0:45:45 > 0:45:50It didn't need too much work done to it, just really decorating and things.
0:45:54 > 0:45:58And it's only really taken probably two to three weeks.
0:46:01 > 0:46:05Originally I did have a tenant, who was my son's friend,
0:46:05 > 0:46:09but she decided that she wasn't going to live here
0:46:09 > 0:46:12because it was going to cost too much.
0:46:17 > 0:46:20Ruth's friend was happy to rent it out without any changes,
0:46:20 > 0:46:25but when that fell through, Ruth and her partner Brett decided
0:46:25 > 0:46:28to get the paint brushes out and do a general tidy-up.
0:46:31 > 0:46:34In the bathroom we've washed everything down,
0:46:34 > 0:46:37given it three coats of good quality paint,
0:46:37 > 0:46:41stuck skirting boards back on, cleaned everything down,
0:46:41 > 0:46:44renewed the shower curtain - basically made it liveable.
0:46:44 > 0:46:47Brett is a builder and had the electrics and the plumbing
0:46:47 > 0:46:49in the house checked out.
0:46:49 > 0:46:51And the flooring was updated in some rooms.
0:46:51 > 0:46:54But what is the plan for the house now?
0:46:54 > 0:46:57I think just to keep it rented out for two to three years
0:46:57 > 0:46:59and then make a decision afterwards
0:46:59 > 0:47:04whether my mum might live here, or me, or whether I will sell it.
0:47:04 > 0:47:06I won't be living here, though.
0:47:06 > 0:47:08Righty-ho. Moving swiftly on!
0:47:08 > 0:47:11This might not be Brett's next home
0:47:11 > 0:47:15but how much did it cost to get it ready for...whoever does move in?
0:47:17 > 0:47:20The original budget was about £2,000.
0:47:20 > 0:47:25That included fees and mortgage payments.
0:47:25 > 0:47:28And I think we probably have come in just around on budget.
0:47:30 > 0:47:36£2,000 in addition to the £108,500 purchase price takes Ruth's
0:47:36 > 0:47:40total costs to £110,500.
0:47:40 > 0:47:44So, has this actually been an inspired purchase?
0:47:44 > 0:47:47What do two local estate agents think of the house?
0:47:49 > 0:47:52I think that not a great deal has been done to the property.
0:47:52 > 0:47:55But it has been freshened up and redecorated
0:47:55 > 0:47:56and it looks very pleasant.
0:47:56 > 0:47:58I think it looks really good.
0:47:58 > 0:48:01The current owner has done a good job at redecorating
0:48:01 > 0:48:03the property to give it a nice
0:48:03 > 0:48:04fresh and airy feeling.
0:48:04 > 0:48:09And a nice blank canvas for the new potential tenant or new owner.
0:48:09 > 0:48:11I would have changed the kitchen
0:48:11 > 0:48:16and updated it with better quality units and appliances.
0:48:16 > 0:48:18Personally, if it was a long-term investment,
0:48:18 > 0:48:22I would have upgraded some of the fittings and finishings,
0:48:22 > 0:48:23for instance the kitchen
0:48:23 > 0:48:27I would possibly have done to a higher spec and I would have continued
0:48:27 > 0:48:28that throughout the floor coverings
0:48:28 > 0:48:30and potentially the bathroom as well.
0:48:30 > 0:48:34Ruth plans to initially rent the house out, but what is
0:48:34 > 0:48:40her £110,500 investment worth currently on the resale market?
0:48:40 > 0:48:44I would expect this to achieve in the region of 115 to £120,000.
0:48:44 > 0:48:47If I was to put this property on the sales market,
0:48:47 > 0:48:51I would hope it would achieve between 115 and £120,000.
0:48:51 > 0:48:56That is exactly what I expected. I thought they would say that.
0:48:56 > 0:49:00And I think that is really quite good, considering what we paid
0:49:00 > 0:49:03and how much has been spent. I would be quite happy with that.
0:49:03 > 0:49:10So, potentially a small pre-tax profit of between £4,500 to £9,500.
0:49:10 > 0:49:13But for the moment, this house is aimed at the rental market.
0:49:13 > 0:49:17I would expect it to achieve around £600 per calendar month.
0:49:17 > 0:49:20If I was to put this on the rental market, I would hope to achieve
0:49:20 > 0:49:24somewhere between 550 and £575 per calendar month.
0:49:24 > 0:49:26I think that's very good.
0:49:26 > 0:49:31We have actually rented it out for 550 and I am quite happy with that.
0:49:31 > 0:49:32That is great.
0:49:32 > 0:49:36She has got a tenant and at £550 per calendar month, that is
0:49:36 > 0:49:38a rental yield of just below 6%.
0:49:39 > 0:49:43So, despite breaking several Hammer golden rules,
0:49:43 > 0:49:47Ruth's done OK here. But is Brett worried about Ruth taking
0:49:47 > 0:49:49another trip to the auction room?
0:49:51 > 0:49:54I'm not, because she has actually done it twice now.
0:49:54 > 0:49:58Actually, funny enough, both times I've been with her.
0:49:58 > 0:50:01And both times she has been successful with what
0:50:01 > 0:50:04she has been looking for, and both times she's done really well.
0:50:04 > 0:50:08# Nothing I can do
0:50:08 > 0:50:13# Cos she don't play She don't play by the rules
0:50:15 > 0:50:20# I said she don't play She don't play by the rules... #
0:50:23 > 0:50:27Well, if Ruth's renovation was as straightforward as they come,
0:50:27 > 0:50:30the two-bed mid-terrace in Folkestone was anything but.
0:50:31 > 0:50:37Bought by father and son team Andy and Lee for 72,000,
0:50:37 > 0:50:40it had worrying cracks and a slanting floor.
0:50:41 > 0:50:44Dad Andy and son Lee run a plumbing and electrical company
0:50:44 > 0:50:48that specialise in adapting homes for disabled people.
0:50:48 > 0:50:51Andy and Lee weren't in the least fazed by the state
0:50:51 > 0:50:55of the property and plan to do the majority of the work themselves
0:50:55 > 0:50:59and were undecided whether to rent or sell the property once complete.
0:50:59 > 0:51:03This is their first independent property project
0:51:03 > 0:51:05and they certainly jumped in at the deep end.
0:51:07 > 0:51:10Can we have a chat about the floor
0:51:10 > 0:51:15and why I am wanting to go like that, because it just leans that way?
0:51:15 > 0:51:19We feel that a lot of it is through damp, from upstairs.
0:51:19 > 0:51:22The gutters haven't been sealed properly
0:51:22 > 0:51:25and literally the water has been cascading down the wall
0:51:25 > 0:51:28and it's made all the kitchen damp and obviously
0:51:28 > 0:51:33the ends of the joist that were or supposedly attached to the wall.
0:51:33 > 0:51:35Have the cracks got anything to do with that?
0:51:35 > 0:51:39I don't think the cracks have got anything major to do with that.
0:51:39 > 0:51:42Despite a long old list of jobs ahead,
0:51:42 > 0:51:45Andy and Lee remain confident.
0:51:45 > 0:51:48Now, nearly nine months later, we're back.
0:51:59 > 0:52:02By removing a wall and adding a banister to the stairs,
0:52:02 > 0:52:06Andy and Lee have opened up this once dingy living space.
0:52:07 > 0:52:11They have also levelled the sloping floor and plastered
0:52:11 > 0:52:13and painted the entire area.
0:52:20 > 0:52:25A brand-new kitchen has been fitted, creating a bright and fresh feel.
0:52:26 > 0:52:28Moving upstairs...
0:52:30 > 0:52:35Well, the good work continues, as does the replastering and painting.
0:52:35 > 0:52:37The cracks in the master bedroom have been dealt with
0:52:37 > 0:52:42and the whole of the upstairs just feels fresh and rejuvenated.
0:52:46 > 0:52:51With a lovely new bathroom, Andy and Lee have transformed this
0:52:51 > 0:52:55once damp, cracked and broken two-bed terrace
0:52:55 > 0:52:58and turned it into a beautiful family home.
0:53:00 > 0:53:04For me it's the layout change downstairs that has just made
0:53:04 > 0:53:06the biggest difference here.
0:53:08 > 0:53:11Yeah, as you can see we took this wall out, Mum,
0:53:11 > 0:53:15in her ultimate wisdom, said, "Take the wall out." I said, "No."
0:53:15 > 0:53:18She said, "Yes." In the end, she got her away.
0:53:18 > 0:53:19The wall came out,
0:53:19 > 0:53:23then we could put the steels in to prop the wall upstairs.
0:53:23 > 0:53:26The floor came up, it is nice and level now.
0:53:26 > 0:53:32We put this beam in here to try and take up the level of the floor
0:53:32 > 0:53:35in the hallway as well, where that had dropped, all because
0:53:35 > 0:53:36of literally this wall.
0:53:36 > 0:53:39So, yeah, it has made it a lovely family room now
0:53:39 > 0:53:40so we're really happy.
0:53:40 > 0:53:43The problems were partly caused by poor guttering
0:53:43 > 0:53:46and inadequate drainage at the back of the property.
0:53:46 > 0:53:49By replacing the problem guttering and repaving,
0:53:49 > 0:53:53the boys have been able to fix a big, persistent problem.
0:53:53 > 0:53:56Martin and I are always going on about the importance
0:53:56 > 0:53:59of maintenance. Well, it just shows you how simple
0:53:59 > 0:54:03things like ignoring guttering can lead to real serious issues.
0:54:03 > 0:54:05So what else did they have to tackle?
0:54:05 > 0:54:08New plastering to every room.
0:54:08 > 0:54:12Electrical, plumbing, new boiler, new radiators.
0:54:12 > 0:54:16Plus also we found other problems in the house
0:54:16 > 0:54:19when Lee was draining the cistern upstairs.
0:54:19 > 0:54:21The tank itself had a hole on the side
0:54:21 > 0:54:24that when he moved the tank, water just poured out of it.
0:54:24 > 0:54:27And as he was draining it down into the bath, opening the taps up,
0:54:27 > 0:54:32the U-pipe, which is a copper U-pipe, had worn away.
0:54:32 > 0:54:34And I was below at the time and as he was draining it down,
0:54:34 > 0:54:37the water just poured down, poured over me
0:54:37 > 0:54:41and the kitchen was hence completely soaked. So the poor person
0:54:41 > 0:54:44that was living here beforehand had this problem to contend with,
0:54:44 > 0:54:46where every time they had a bath, it was just coming through
0:54:46 > 0:54:49the ceiling and then going downstairs into the kitchen
0:54:49 > 0:54:51and absolutely soaking the kitchen.
0:54:51 > 0:54:54It was hard work, but we got there.
0:54:54 > 0:54:58Got there, they certainly have. Both are qualified electricians
0:54:58 > 0:55:00and have managed all the other trades as well.
0:55:00 > 0:55:04We haven't had to have anyone come in to help us.
0:55:04 > 0:55:06We've done the windows, the doors.
0:55:06 > 0:55:08All the plastering we've done together.
0:55:08 > 0:55:13My father done the nice banister, the rail for the stairs.
0:55:13 > 0:55:17We've had my sons, both sons, helping.
0:55:17 > 0:55:21Mum, I had my wife down here, nieces and nephews coming to help.
0:55:21 > 0:55:24So we have had a lot of help on the way.
0:55:24 > 0:55:26And some of it has been a bit yucky,
0:55:26 > 0:55:30but it's nothing we haven't come across before, really.
0:55:30 > 0:55:32All those extra hands
0:55:32 > 0:55:37and the boys' own experience helped keep the budget down to 18,000.
0:55:37 > 0:55:41Whilst this is over their original budget of 12 to £15,000,
0:55:41 > 0:55:44that was predicted before they knew about the extensive work
0:55:44 > 0:55:46they would have to undertake.
0:55:46 > 0:55:51For me, doing all this for £18,000 is a minor miracle.
0:55:51 > 0:55:56We have had people knocking on the door, four or five people
0:55:56 > 0:55:59putting stuff through the letter box wanting to rent the house.
0:55:59 > 0:56:01If we can't sell it, basically,
0:56:01 > 0:56:05so that we can do the next project, that's what it's for,
0:56:05 > 0:56:09if not, we'll rent it and go from there and see what we can do.
0:56:10 > 0:56:14Andy and Lee had a time scale of 10 to 16 weeks, but due to work
0:56:14 > 0:56:17commitments taking them away, it has taken closer to nine months.
0:56:21 > 0:56:25With a total spend of around £90,000, they will be keen to hear
0:56:25 > 0:56:28what two local estate agents made of this property.
0:56:30 > 0:56:32They have renovated it to a good standard.
0:56:32 > 0:56:35Nice fitted kitchen, nice bathroom and, yes,
0:56:35 > 0:56:37they've got a nice finish to it.
0:56:37 > 0:56:39I think the changes here are spectacular.
0:56:39 > 0:56:40They've done all the right things
0:56:40 > 0:56:43and the things I'd always advise people to do.
0:56:43 > 0:56:45If this property came onto the rental market,
0:56:45 > 0:56:48there would be a lot of interest for it.
0:56:48 > 0:56:51And I would say that we could very easily achieve £650
0:56:51 > 0:56:53per calendar month.
0:56:53 > 0:56:57I think if this house was let now, the rent would be about £625
0:56:57 > 0:56:58per calendar month.
0:56:59 > 0:57:04That would be an annual rental yield of just over 8.5%.
0:57:04 > 0:57:06But what about the resale value?
0:57:06 > 0:57:09I think this property, placed onto the open market, should be
0:57:09 > 0:57:12marketed for about £130,000.
0:57:12 > 0:57:14To sell this property now, I think
0:57:14 > 0:57:18it's value is in the range of 140 to £145,000.
0:57:18 > 0:57:20The standard is pretty good,
0:57:20 > 0:57:25so hopefully obviously we will have an offer, there or thereabouts.
0:57:25 > 0:57:27Yes, I think it's a good price.
0:57:27 > 0:57:28Happy.
0:57:28 > 0:57:33That top estimate would mean a profit of a whopping £55,000.
0:57:33 > 0:57:36So, whether they decide to rent or sell,
0:57:36 > 0:57:41the boys' first development project has been a very big success.
0:57:41 > 0:57:44We've gone in it together, we've jumped in with both feet,
0:57:44 > 0:57:48and we've come out at the end of the day with a nice property
0:57:48 > 0:57:51that we've refurbished. So, yes, it's been quite good.
0:57:52 > 0:57:56We'll have plenty more stories from the auction rooms for you
0:57:56 > 0:57:59- next time.- Yes, so make sure you join us then to hear the highs
0:57:59 > 0:58:01and the lows of buying homes under the hammer.
0:58:01 > 0:58:02- See- you then. Goodbye.