0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:05We both love dabbling in the world of property
0:00:05 > 0:00:08and hope to snag a bargain along the way.
0:00:08 > 0:00:12But in today's tougher markets, well, it's not always that easy.
0:00:12 > 0:00:15But one way you can stack things in your favour
0:00:15 > 0:00:17is by going to your local property auction.
0:00:43 > 0:00:45Buying at auction is becoming increasingly popular.
0:00:45 > 0:00:48And that is partly because there's no messing around -
0:00:48 > 0:00:51when the hammer falls, you have exchanged contracts,
0:00:51 > 0:00:53as long as you've got your 10% deposit.
0:00:53 > 0:00:55So let's take a look at the three properties
0:00:55 > 0:00:58that went under the hammer on today's show.
0:00:58 > 0:01:02'In Streatham, London, is the grass always greener on the other side?'
0:01:02 > 0:01:04I'm a little disappointed
0:01:04 > 0:01:06that it's not one of the lovely period cottages
0:01:06 > 0:01:08on the other side of the road.
0:01:08 > 0:01:11'In Chatham, Kent, this terrace leaves me speechless.'
0:01:11 > 0:01:13From the outside, "Hmm-hmm."
0:01:13 > 0:01:15Once you get in, "Yeah..."
0:01:15 > 0:01:19'In Merthyr Tydfil, something odd takes my fancy.'
0:01:19 > 0:01:20Bit of quilting.
0:01:20 > 0:01:22You know, I actually like that.
0:01:23 > 0:01:26All these properties have been sold at auction.
0:01:26 > 0:01:29We'll find out who bought them and what they paid for them
0:01:29 > 0:01:31when they went under the hammer.
0:01:31 > 0:01:33Sold.
0:01:36 > 0:01:38MUSIC: "London Calling" by The Clash
0:01:41 > 0:01:44If you can't afford the property prices
0:01:44 > 0:01:46in southwest London's super-trendy Clapham,
0:01:46 > 0:01:50why not drive ten minutes down the road to Streatham?
0:01:50 > 0:01:53It's an area on the up, with plenty of shops and restaurants
0:01:53 > 0:01:56on one of the longest streets in Europe.
0:02:00 > 0:02:04At the moment, it's still up to 20% cheaper than its pricey neighbour,
0:02:04 > 0:02:06but that gap is closing quickly
0:02:06 > 0:02:08as more and more people move here,
0:02:08 > 0:02:09so with that in mind,
0:02:09 > 0:02:12it may be an idea to buy sooner rather than later.
0:02:12 > 0:02:16Along this residential street is the three-bedroom property
0:02:16 > 0:02:17that I'm here to see.
0:02:17 > 0:02:21It had a guide price of 235,000.
0:02:21 > 0:02:22Here it is.
0:02:22 > 0:02:23I'm a little disappointed
0:02:23 > 0:02:26that it's not one of the lovely period cottages
0:02:26 > 0:02:27on the other side of the road,
0:02:27 > 0:02:29but let's not judge a book by its cover.
0:02:29 > 0:02:31Time to take a look inside.
0:02:37 > 0:02:42What these houses lack in character, they really make up for in space.
0:02:42 > 0:02:44This is a very welcoming hallway.
0:02:44 > 0:02:46Not quite sure about the colour scheme -
0:02:46 > 0:02:48banoffee pie, yellow and caramel,
0:02:48 > 0:02:50but that can all be changed.
0:02:50 > 0:02:52Really nice-sized reception room there.
0:02:52 > 0:02:55Obviously, it needs a lot of work. It's incredibly dated,
0:02:55 > 0:02:58you've got polystyrene tiles everywhere.
0:02:58 > 0:03:01Downstairs bathroom and the second reception room -
0:03:01 > 0:03:03fantastic space.
0:03:03 > 0:03:06You've got a little flat-roofed extension out here.
0:03:06 > 0:03:09There is so much you could do with this property.
0:03:09 > 0:03:11It really has got a lot going for it.
0:03:11 > 0:03:12You could put the kitchen in this room,
0:03:12 > 0:03:15a really nice family table out here.
0:03:15 > 0:03:18The only thing that's disappointing me so far -
0:03:18 > 0:03:20the downstairs bathroom.
0:03:21 > 0:03:23MUSIC: "Mellow Yellow" by Donovan
0:03:25 > 0:03:29OK, so the colour scheme needs to be taken into "custardy".
0:03:29 > 0:03:32Ha! And it's not the prettiest of properties.
0:03:32 > 0:03:35But this could be a diamond in the rough.
0:03:35 > 0:03:37Time to head upstairs to see
0:03:37 > 0:03:40if there's a solution to the downstairs bathroom.
0:03:40 > 0:03:42Upstairs, there is still some dated decor,
0:03:42 > 0:03:45but there are two good-sized bedrooms
0:03:45 > 0:03:48and a single, perfect for a family.
0:03:48 > 0:03:51Double glazing features throughout and central heating,
0:03:51 > 0:03:54so it really is just the bathroom that's the issue for me.
0:03:54 > 0:03:56And there is a toilet up here -
0:03:56 > 0:03:59would there be room to turn that into a bathroom?
0:03:59 > 0:04:03Hold that thought for a second, because in the great-sized garden...
0:04:03 > 0:04:04Nice apple tree.
0:04:04 > 0:04:06..there may be a solution.
0:04:06 > 0:04:09I'm thinking that using permitted development rights
0:04:09 > 0:04:12might allow for this house to be made bigger.
0:04:12 > 0:04:14Now, I'd always caution you first
0:04:14 > 0:04:17to take advice from planning before going ahead,
0:04:17 > 0:04:20as rights can differ from place to place,
0:04:20 > 0:04:22but there are general guidelines.
0:04:22 > 0:04:25You could build a single-storey rear extension
0:04:25 > 0:04:28of three metres in length and four metres in height,
0:04:28 > 0:04:30or you could go bigger
0:04:30 > 0:04:33and build a two-storey extension of three metres in length,
0:04:33 > 0:04:37providing it was no higher than the existing house
0:04:37 > 0:04:40and no less than seven metres from this garden boundary.
0:04:40 > 0:04:42You would still need building regs,
0:04:42 > 0:04:45but without having to apply for planning permission.
0:04:45 > 0:04:47It would just make the extension quicker to build
0:04:47 > 0:04:49as well as a little bit cheaper.
0:04:51 > 0:04:54With all the options available to you with this property,
0:04:54 > 0:04:57that guide price of 235,000
0:04:57 > 0:04:59is looking even more attractive.
0:05:00 > 0:05:03And the options don't stop there.
0:05:04 > 0:05:08So we've looked out the back. Now it's time to look up.
0:05:08 > 0:05:10Go on, have a look up there.
0:05:10 > 0:05:12Are you thinking what I'm thinking?
0:05:12 > 0:05:15Yes, you could also consider a loft conversion,
0:05:15 > 0:05:18as long as the roof height can accommodate it, of course.
0:05:18 > 0:05:20Now, there are a lot of options for this house,
0:05:20 > 0:05:23but you really need to sit down, do your sums
0:05:23 > 0:05:26and decide how far you should take this development.
0:05:26 > 0:05:28MUSIC: "The Only Way Is Up" by Yazz
0:05:30 > 0:05:34Now, I'm just pointing out some options here.
0:05:34 > 0:05:37It's important not to overdevelop a property.
0:05:37 > 0:05:39You don't want your budget to balloon.
0:05:39 > 0:05:43What would a local property expert suggest doing with this house,
0:05:43 > 0:05:46guided at 235,000?
0:05:46 > 0:05:49I think the main key points to concentrate on
0:05:49 > 0:05:52would be to relocate that downstairs bathroom upstairs.
0:05:52 > 0:05:57It offers great potential, feasibly, to extend up into the loft
0:05:57 > 0:05:58and I would certainly look to do
0:05:58 > 0:06:02a full-width rear kitchen extension as well.
0:06:02 > 0:06:05So knock down the existing extension and start again.
0:06:05 > 0:06:09But what about creating a two-storey extension?
0:06:09 > 0:06:12The option to create a two-storey extension
0:06:12 > 0:06:14is not necessary.
0:06:14 > 0:06:17A better option, I think, would be to extend up into the loft
0:06:17 > 0:06:20to create a further, larger master en suite bedroom.
0:06:21 > 0:06:23Food for thought.
0:06:23 > 0:06:24Let's talk values, then.
0:06:26 > 0:06:32Once renovated, this property would fetch in the region of £385,000.
0:06:32 > 0:06:37If you extend up into the loft and do a full rear kitchen extension,
0:06:37 > 0:06:43potential resale value would be in the region of £425,000-£435,000.
0:06:43 > 0:06:47Wow! So potentially a big profit to be made here,
0:06:47 > 0:06:49whichever option you go for.
0:06:49 > 0:06:51Are the rental values just as good?
0:06:51 > 0:06:54Once renovated, this property would fetch
0:06:54 > 0:06:58in the region of £1,400-£1,500 per calendar month.
0:06:58 > 0:07:01If you extended and went up into the loft,
0:07:01 > 0:07:05rental potentials would be between £1,600-£1,700 per calendar month.
0:07:06 > 0:07:09Well, it might not be a period property,
0:07:09 > 0:07:13but I think this terrace, it'll make a really wise purchase for someone.
0:07:13 > 0:07:16It's a solid house and it's oozing potential
0:07:16 > 0:07:19with all those extensions and lay out options.
0:07:19 > 0:07:21Let's see who agreed when we went to auction.
0:07:25 > 0:07:28House in Streatham at 240, it's ridiculous.
0:07:28 > 0:07:30240 with you. 240.
0:07:30 > 0:07:33245?
0:07:33 > 0:07:35245.
0:07:35 > 0:07:37250.
0:07:37 > 0:07:39250. 255.
0:07:39 > 0:07:41260.
0:07:41 > 0:07:43265.
0:07:43 > 0:07:45270.
0:07:45 > 0:07:46270.
0:07:46 > 0:07:48275. 280.
0:07:50 > 0:07:53With the guide price a distant memory,
0:07:53 > 0:07:57we rejoin at 341,000.
0:07:57 > 0:07:59Back to you, 341.
0:07:59 > 0:08:01342.
0:08:01 > 0:08:03If not, 341 first time.
0:08:03 > 0:08:05Second time.
0:08:05 > 0:08:08342, new spot.
0:08:08 > 0:08:10343.
0:08:10 > 0:08:11343?
0:08:11 > 0:08:13344.
0:08:14 > 0:08:16344. 345.
0:08:17 > 0:08:19346.
0:08:19 > 0:08:20347.
0:08:22 > 0:08:25If not, 346 first time.
0:08:25 > 0:08:27Second time.
0:08:27 > 0:08:29Third and last time, if you're all done.
0:08:31 > 0:08:34Sold, 346. Well done.
0:08:34 > 0:08:36And the successful bidder
0:08:36 > 0:08:40paying a whopping 111,000 over the guide price
0:08:40 > 0:08:42was events organiser David.
0:08:42 > 0:08:46I can't wait to find out why he really wanted this property.
0:08:46 > 0:08:50- David, congratulations.- Thank you very much.- This is great news.
0:08:50 > 0:08:54Yeah, I'm really excited. It's a bit of a big project for me,
0:08:54 > 0:08:56- so I'm very nervous about it. - Are you?!
0:08:56 > 0:08:58I really hope I'm going to get it right.
0:08:58 > 0:09:01Right, so let's start at the very beginning.
0:09:01 > 0:09:04Well, the house is for me and my wife, Claire.
0:09:04 > 0:09:06We just got married four and half months ago.
0:09:06 > 0:09:09Oh, congratulations, amazing!
0:09:09 > 0:09:12So this is your first marital home together?
0:09:12 > 0:09:13Marital, yes.
0:09:13 > 0:09:17We lived together in a flat before, but this is our first "home" home.
0:09:17 > 0:09:20So how do you feel about the price you paid on auction day?
0:09:20 > 0:09:23I'd set myself a limit the day before of 340.
0:09:23 > 0:09:26That very morning, I upped it to 350,
0:09:26 > 0:09:30just looking at how houses were going and I did my maths
0:09:30 > 0:09:34and figured out this place was probably worth that
0:09:34 > 0:09:37and I could afford that and I wanted it, I really wanted it.
0:09:38 > 0:09:43As did David's wife, Claire, who has some useful skills.
0:09:44 > 0:09:45Claire's an interior designer.
0:09:45 > 0:09:49Perfect! Wow! So she's going to come in here and put her stamp on it.
0:09:49 > 0:09:53Yeah, absolutely, but she has quite an expensive stamp.
0:09:54 > 0:09:56Really? Hmm, does that bother you?
0:09:56 > 0:09:58Well, I like to watch the pennies.
0:09:58 > 0:09:59I don't want to overspend
0:09:59 > 0:10:01and I think it's going to be one of our biggest battles.
0:10:01 > 0:10:04She wants the nice stuff, I want the cheap stuff.
0:10:04 > 0:10:07- You need to have the nice stuff. - I want it to be nice,
0:10:07 > 0:10:10but I don't think you have to pay as much as some people do pay
0:10:10 > 0:10:12for nice things.
0:10:12 > 0:10:13OK, let's talk about this house.
0:10:13 > 0:10:16Let's start off with the downstairs bathroom.
0:10:16 > 0:10:18I don't rate downstairs bathrooms.
0:10:18 > 0:10:21It is where it is now, but I'm hoping to move it upstairs
0:10:21 > 0:10:22and turn that maybe into a toilet,
0:10:22 > 0:10:25because I think it is good to have a downstairs loo,
0:10:25 > 0:10:26and a utility room.
0:10:26 > 0:10:29So how are you going to get that bathroom upstairs?
0:10:29 > 0:10:31I figured if I can turn the stairs at the top
0:10:31 > 0:10:34a full 180 degrees,
0:10:34 > 0:10:37and then knock down the toilet that's up there at the moment
0:10:37 > 0:10:39and build it across the hallway,
0:10:39 > 0:10:44so hopefully get a bath, toilet and sink in there,
0:10:44 > 0:10:46and a door at the far end.
0:10:46 > 0:10:47I think that could work.
0:10:47 > 0:10:50- Oh, brilliant!- So well done.
0:10:50 > 0:10:54And what about all the further potential of this property?
0:10:54 > 0:10:56Are you going to be extending or going out at all?
0:10:56 > 0:10:59Right now, we're going to put our money into the loft,
0:10:59 > 0:11:01because it's cheaper
0:11:01 > 0:11:03and it's the money that we have.
0:11:03 > 0:11:06We're going to put another staircase in that's going to turn round
0:11:06 > 0:11:08above the current staircase,
0:11:08 > 0:11:09step up into the loft,
0:11:09 > 0:11:10and when I went up there,
0:11:10 > 0:11:13I was amazed by how much space is actually there,
0:11:13 > 0:11:14cos it looks tiny from the outside.
0:11:14 > 0:11:17David, tell me how much your budget is.
0:11:17 > 0:11:21We've got £30,000, including contingency funds.
0:11:21 > 0:11:22So that's everything?
0:11:22 > 0:11:24That's the lot, that's the rest of our money.
0:11:24 > 0:11:28- That's going to be tight.- Well, I'm going to do most of the work myself.
0:11:28 > 0:11:29I'm very handy.
0:11:29 > 0:11:31My parents brought me up living in houses
0:11:31 > 0:11:33that were always under construction,
0:11:33 > 0:11:35but, yeah, I think we're going to mainly do decorative work,
0:11:35 > 0:11:38which I think is what most of the property needs.
0:11:38 > 0:11:41Spend about £10,000, hopefully, doing the loft,
0:11:41 > 0:11:44- which is very little.- That's not a lot of money for a loft conversion.
0:11:44 > 0:11:46Where have you got that quote from?
0:11:46 > 0:11:48I'm hoping to do most of the work myself.
0:11:48 > 0:11:51I've got an uncle who's a structural engineer who's going to help me
0:11:51 > 0:11:54with the maths and all of that stuff
0:11:54 > 0:11:58and I'm just going to try and keep prices down as much as I can.
0:11:58 > 0:12:01Well, although he works as an event manager,
0:12:01 > 0:12:05David is a qualified electrician, so that is bound to help.
0:12:05 > 0:12:07This is definitely going to be a labour of love.
0:12:07 > 0:12:10The couple have a three to four-month timescale
0:12:10 > 0:12:13and plan to live here while they do the work.
0:12:13 > 0:12:15It's going to be really exciting coming back and seeing
0:12:15 > 0:12:18what you've done here and looking at Claire's designer finishing touches.
0:12:18 > 0:12:22- Congratulations. - Thank you, Lucy.- Thank you.
0:12:22 > 0:12:25Newly married and now they have a new house, so it's exciting times
0:12:25 > 0:12:27for David and his wife Claire,
0:12:27 > 0:12:30but will David manage to keep his budget under control?
0:12:30 > 0:12:33You can join me later on in the show and we will find out
0:12:33 > 0:12:36whether they do create that perfect family home here.
0:12:38 > 0:12:42Chatham in Kent was home to author Charles Dickens as a child
0:12:42 > 0:12:45for a period when his father, who was a clerk,
0:12:45 > 0:12:48was said to work in the Navy pay office
0:12:48 > 0:12:50and the lovely countryside of Kent
0:12:50 > 0:12:52must have been in stark contrast with London
0:12:52 > 0:12:54when he later travelled there.
0:12:54 > 0:12:56Nowadays, if you're making your home here,
0:12:56 > 0:12:59or bringing it with you, Chatham has become a favourite
0:12:59 > 0:13:02with families and young professionals alike.
0:13:02 > 0:13:06Well, I'm certainly arriving with great expectations.
0:13:06 > 0:13:10The train station is literally down at the bottom of the hill there,
0:13:10 > 0:13:13so fantastic commuter links if you want to go into London, etc.
0:13:13 > 0:13:19The property itself, very attractive guide price - £75,000, two bedrooms.
0:13:19 > 0:13:22Hmm, let's take a look.
0:13:22 > 0:13:24So what have we got?
0:13:24 > 0:13:26Well, that's a nice positive start -
0:13:26 > 0:13:27a radiator.
0:13:27 > 0:13:29Not exactly the ideal position,
0:13:29 > 0:13:32but at least the place has got central heating, which is good news.
0:13:32 > 0:13:35Front sitting room there. Hmm...
0:13:36 > 0:13:38The reason I'm going, "Hmm,"
0:13:38 > 0:13:41is because you've got this wall and it's kind of unnecessary,
0:13:41 > 0:13:42because it makes it feel very cramped,
0:13:42 > 0:13:44you've just got this corridor,
0:13:44 > 0:13:47so probably one of the first things I'd do is get of this wall
0:13:47 > 0:13:49and make it a bit more open-plan.
0:13:49 > 0:13:51Some nice little touches, though.
0:13:51 > 0:13:54I like this staircase, winding up as it does.
0:13:54 > 0:13:57That looks like it's got some nice wood in there as well,
0:13:57 > 0:13:58so strip that back.
0:13:58 > 0:13:59And then, surprise, surprise,
0:13:59 > 0:14:01towards the rear of the property here,
0:14:01 > 0:14:05this really nice open-plan living area.
0:14:05 > 0:14:06You've got this open fire here,
0:14:06 > 0:14:09which would make this a really cosy area.
0:14:09 > 0:14:10Obviously, at some stage,
0:14:10 > 0:14:13somebody's built an extension on the back which now houses the kitchen.
0:14:15 > 0:14:18Like the rest of the house, it needs some work.
0:14:19 > 0:14:21But I think it could be really lovely,
0:14:21 > 0:14:22so it's one of those properties
0:14:22 > 0:14:24where it's a little bit disappointing
0:14:24 > 0:14:25when you walk through the door
0:14:25 > 0:14:30and as you basically travel into the property, it really comes up trumps.
0:14:32 > 0:14:35So far, my great expectations have been met,
0:14:35 > 0:14:39and I reckon a fairly Scrooge-like budget could sort it,
0:14:39 > 0:14:42because upstairs, it isn't all that bad either.
0:14:42 > 0:14:46A good-sized bathroom, two bedrooms of excellent proportions
0:14:46 > 0:14:49and that wonderful staircase runs from top to bottom,
0:14:49 > 0:14:51revealing a basement with huge potential.
0:14:53 > 0:14:56In fact, this property is oozing potential,
0:14:56 > 0:14:58and that includes the back garden.
0:14:59 > 0:15:02I think there's definitely an opportunity to build
0:15:02 > 0:15:06an extension perhaps here, possibly two storeys.
0:15:06 > 0:15:09Fill in this gap, give you definitely much needed space
0:15:09 > 0:15:12and it wouldn't necessarily detract that much from the garden,
0:15:12 > 0:15:15because, bit of a mountain climb though it is,
0:15:15 > 0:15:16it's a good space.
0:15:16 > 0:15:19Not divided off from the next door's at the moment,
0:15:19 > 0:15:20but if you got on with the neighbours,
0:15:20 > 0:15:23it's actually quite nice that it's open-plan,
0:15:23 > 0:15:25but if you were to put a fence in here,
0:15:25 > 0:15:28still lots and lots and lots of room going that way.
0:15:28 > 0:15:29And yeah,
0:15:29 > 0:15:33it adds to a house which from the outside, "Hmm-hmm".
0:15:33 > 0:15:36Once you get in, "Yeah, you know, thumbs up."
0:15:37 > 0:15:39Thumbs up indeed.
0:15:39 > 0:15:43Or are there some cracks appearing in my optimistic mood?
0:15:43 > 0:15:45So it's all going quite well.
0:15:45 > 0:15:47- HE CLEARS THROAT - And then...
0:15:47 > 0:15:49Back to the front living room here
0:15:49 > 0:15:55and a really rather nasty crack in the front wall there.
0:15:56 > 0:15:59How serious is it? I'll need to take a look outside.
0:16:02 > 0:16:06Oh, dear. It looks like the whole of this front wall
0:16:06 > 0:16:11is actually bowing out and there's a big crack there too.
0:16:13 > 0:16:15So what's it going to take to sort that out?
0:16:15 > 0:16:20Well, my fear is taking down the whole of the front there
0:16:20 > 0:16:21and underpinning it.
0:16:21 > 0:16:23That's the worse-case scenario,
0:16:23 > 0:16:26but to me, that ain't looking good.
0:16:26 > 0:16:30MUSIC: "Breakin' At The Cracks" by Colbie Caillat
0:16:30 > 0:16:31Don't get me wrong,
0:16:31 > 0:16:34I don't think it's a case of "bleak house" just yet,
0:16:34 > 0:16:37but a structural engineer needs to take a look,
0:16:37 > 0:16:40just so you know how much this might end up costing you.
0:16:40 > 0:16:43But there is so much to like about this house,
0:16:43 > 0:16:45I wouldn't give up on it.
0:16:45 > 0:16:49A local estate agent came along to give her take on it.
0:16:49 > 0:16:51This property is a fantastic size.
0:16:51 > 0:16:56It's got two double bedrooms, nice, spacious bathroom as well.
0:16:56 > 0:16:59The rear of the property has got the potential to extend.
0:16:59 > 0:17:03You could do either a single storey to create a nice dining room,
0:17:03 > 0:17:06or alternatively you could do a double-storey extension,
0:17:06 > 0:17:08converting the property into a three-bedroom.
0:17:10 > 0:17:14I am loving the agent's enthusiasm for the property's potential,
0:17:14 > 0:17:16but extensions are not cheap.
0:17:16 > 0:17:18If you are making an investment here,
0:17:18 > 0:17:22then it's important to always keep in mind the costs of such a build
0:17:22 > 0:17:24versus any future returns.
0:17:26 > 0:17:31The property would rent for in the region of £625 per calendar month.
0:17:31 > 0:17:33That might offer a decent return if you got it
0:17:33 > 0:17:37anywhere near the guide price and kept the costs under control.
0:17:37 > 0:17:41What if it was done up for the resale market?
0:17:41 > 0:17:42In the current market,
0:17:42 > 0:17:45if the property was to remain as a two-bedroom property,
0:17:45 > 0:17:47I would say you could expect a value
0:17:47 > 0:17:51anywhere between £120,000 and £130,000.
0:17:51 > 0:17:54If you were to invest a bit more money into the property,
0:17:54 > 0:17:55make it a family home,
0:17:55 > 0:17:58and create the two-storey extension,
0:17:58 > 0:18:00I would estimate you'd be looking at a resale value
0:18:00 > 0:18:03of £130,000 to £140,000.
0:18:04 > 0:18:08Well, apart from a few structural issues with this front wall here,
0:18:08 > 0:18:11a good little property and certainly well located.
0:18:11 > 0:18:14What the Dickens did it go for?
0:18:14 > 0:18:16Let's find out when it went under the hammer.
0:18:18 > 0:18:19Stunning little house here.
0:18:19 > 0:18:21Just right, start me where you will.
0:18:21 > 0:18:25Can I see £80,000 for it, get us on the way at £80,000?
0:18:25 > 0:18:27Give me 75, then.
0:18:27 > 0:18:2970, start me... 70.
0:18:29 > 0:18:30I've got that one first.
0:18:30 > 0:18:3172.
0:18:31 > 0:18:33And 5.
0:18:33 > 0:18:3475.
0:18:34 > 0:18:36And 7. 77.
0:18:36 > 0:18:37At 80? At 80.
0:18:37 > 0:18:39And 2.
0:18:39 > 0:18:4182. 84.
0:18:41 > 0:18:4284. 86.
0:18:42 > 0:18:4586. 88.
0:18:45 > 0:18:47At 90. And 2.
0:18:47 > 0:18:50At £90,000, I have. Two more, anywhere?
0:18:50 > 0:18:52If not, it will sell at £90,000
0:18:52 > 0:18:56to the lady who's been there all the time for the first time.
0:18:56 > 0:18:58£90,000 for the second time.
0:18:58 > 0:19:01Third and fin... 92, just in time.
0:19:01 > 0:19:0392. 93. One more.
0:19:03 > 0:19:04You're so close.
0:19:04 > 0:19:0693.
0:19:06 > 0:19:0793?
0:19:07 > 0:19:09You won't get other opportunities.
0:19:09 > 0:19:10Look at the picture.
0:19:10 > 0:19:12Or look at me, even.
0:19:12 > 0:19:14No, look at the picture.
0:19:14 > 0:19:1692,000, I've got. 93, I'm looking for.
0:19:16 > 0:19:19If not, at £92,000, I've got.
0:19:19 > 0:19:21Second time in the front row.
0:19:21 > 0:19:24Third and final time, are we all done at £92,000?
0:19:24 > 0:19:26Yours at 92, sir.
0:19:29 > 0:19:33That nerve-racking final bid of £92,000 was made by Anthony,
0:19:33 > 0:19:35who works for the NHS.
0:19:35 > 0:19:38He came along with his eldest son, James,
0:19:38 > 0:19:41to tell me what they had planned for this property.
0:19:41 > 0:19:43- Anthony, James, great to meet you both.- Hello.
0:19:43 > 0:19:45- Congratulations. - BOTH: Thank you.
0:19:45 > 0:19:47Tell me why you wanted to buy this place.
0:19:48 > 0:19:52Well, I wanted to buy a property
0:19:52 > 0:19:54and this happened to be in the auction
0:19:54 > 0:19:57and because I've been in so many auctions in the last two months,
0:19:57 > 0:19:58I just decided I'd buy one.
0:19:58 > 0:20:00I hadn't actually seen it.
0:20:00 > 0:20:04You hadn't seen it? Oh, no!
0:20:04 > 0:20:07You have no idea how crazy that is.
0:20:07 > 0:20:10- I DO know exactly how crazy it is. - Given that I'm risk-averse.
0:20:10 > 0:20:15- You're risk-averse? But you spent how much, again?- 92.
0:20:15 > 0:20:16On a house you hadn't seen.
0:20:16 > 0:20:19He was kicking himself for a few days after it.
0:20:19 > 0:20:21He was like, "Oh, why did I go and do and this?
0:20:21 > 0:20:23"Why did I go and do this?"
0:20:23 > 0:20:25- But, yeah, it turned out well. - I love that, the fact you
0:20:25 > 0:20:27state you're risk-averse. That's just brilliant.
0:20:27 > 0:20:30So, you were looking to invest in property. What's the idea?
0:20:30 > 0:20:34- What's the reason for doing this? - Long-term, really. I have two boys.
0:20:34 > 0:20:36It would be nice to leave them a property each.
0:20:36 > 0:20:40- So, is this your house, then? - Hopefully.- Oh, great.
0:20:40 > 0:20:43- And what do you think of it, then? - Yeah, I actually really like it.
0:20:43 > 0:20:44I think it has potential.
0:20:44 > 0:20:49- It could be a really good property once renovated.- For sure.
0:20:49 > 0:20:51I'm just trying to imagine what it's like
0:20:51 > 0:20:54when you open that door to a property that you spent
0:20:54 > 0:20:57nearly 100 grand on and you'd never seen it, and you just
0:20:57 > 0:21:00sort of open the door for the first time and it creaks a bit.
0:21:00 > 0:21:04- I mean, how was it?- Well, I didn't quite get to the opening the door.
0:21:04 > 0:21:08- You didn't?- Because before I opened the door I took a look at the side
0:21:08 > 0:21:10and I saw a massive bow, first of all,
0:21:10 > 0:21:14and then a massive crack and I'm thinking, "Done it this time."
0:21:14 > 0:21:16HE CHUCKLES
0:21:16 > 0:21:18We knew that we would find out
0:21:18 > 0:21:21whether it was serious after we'd done the structural survey.
0:21:21 > 0:21:23- Right. - I couldn't call it at the time.
0:21:23 > 0:21:26- And have you had a structural survey done now?- Yes, yes, we have.
0:21:26 > 0:21:27What did they say?
0:21:27 > 0:21:30Well, they reckon that it's a historic move.
0:21:30 > 0:21:34Having said that, I've been talking with the neighbours and I
0:21:34 > 0:21:37understand next door have had theirs worsen over the last two years.
0:21:37 > 0:21:38Oh, great(!)
0:21:38 > 0:21:42What it suggested is that... Quite frankly, I thought subsidence,
0:21:42 > 0:21:44but since it wasn't, that's a big bonus.
0:21:44 > 0:21:47Well, a big "phew" that it doesn't appear to be
0:21:47 > 0:21:49subsidence that's the problem.
0:21:49 > 0:21:52But, worryingly, the neighbours think there may still be an issue.
0:21:52 > 0:21:55Anthony might not be out of the woods on this one.
0:21:55 > 0:21:56And, do I need to say it again?
0:21:56 > 0:21:58Yep, the golden rules -
0:21:58 > 0:22:01view the property, read the legal pack, do your homework.
0:22:01 > 0:22:04This crack is one to keep an eye on but hopefully,
0:22:04 > 0:22:07this investment for James is going to be fine.
0:22:07 > 0:22:10- And how about you, James, are you...?- I'm still in sixth form.
0:22:10 > 0:22:12Still in sixth form? Fantastic.
0:22:12 > 0:22:16So, starting the whole sort of property thing quite early on, then?
0:22:16 > 0:22:21Yeah. Over the past year I've been interested more and more
0:22:21 > 0:22:24in seeing my dad look for stuff.
0:22:24 > 0:22:27I'm more and more looking to help him
0:22:27 > 0:22:30and search for materials and stuff like that.
0:22:32 > 0:22:36Property developers definitely seem to be getting younger.
0:22:36 > 0:22:39James is planning to study economics at university.
0:22:39 > 0:22:42That'll be handy for a future in property.
0:22:42 > 0:22:44Talking of things financial...
0:22:44 > 0:22:46So, what is the budget for the work?
0:22:46 > 0:22:48Initially I thought...
0:22:49 > 0:22:51- ..8,000.- Mm-hm.
0:22:51 > 0:22:56I've just been told this morning that there is damp on a couple of walls
0:22:56 > 0:23:00and the structural thing, so I think it's going to be about 20.
0:23:00 > 0:23:04- OK, so it's gone from 8 to 20. Wow.- Yeah. That's being realistic.
0:23:04 > 0:23:07- Well, that's better to start, being realistic.- Absolutely.
0:23:07 > 0:23:09A lot of people aren't.
0:23:09 > 0:23:12£20,000 does sound realistic.
0:23:12 > 0:23:15But surely James can save his old man some labour costs?
0:23:15 > 0:23:17James is...
0:23:17 > 0:23:18MARTIN LAUGHS
0:23:18 > 0:23:21..with some of the things, yeah.
0:23:21 > 0:23:25- Does he know yet?- Now he does!
0:23:25 > 0:23:27I found out last week that my brother and I
0:23:27 > 0:23:29are going to be doing the garden
0:23:29 > 0:23:31and, judging by just being out there,
0:23:31 > 0:23:34it's going to be a difficult task so, yeah,
0:23:34 > 0:23:36hopefully that goes well.
0:23:36 > 0:23:39James and his brother Alex have a task ahead of them.
0:23:39 > 0:23:41And just knowing what brothers are like...
0:23:41 > 0:23:44My brother's probably going to supervise.
0:23:44 > 0:23:46ANTHONY LAUGHS
0:23:46 > 0:23:49And that's the younger brother!
0:23:49 > 0:23:53So, I'm not pretty sure yet that I'm absolutely decided.
0:23:53 > 0:23:56- Listen, congratulations. Good luck with it.- Thank you.
0:23:56 > 0:23:59- I'm looking forward to seeing how you get on.- Thank you very much.
0:23:59 > 0:24:01So, a risk-averse Anthony
0:24:01 > 0:24:04taking some pretty big risks buying this place.
0:24:04 > 0:24:07Hopefully that wall at the front won't prove to be
0:24:07 > 0:24:08too much of a problem.
0:24:08 > 0:24:13And with the help of James and his brother, they will get it sorted.
0:24:13 > 0:24:16You can find out how they get on later on in the show.
0:24:17 > 0:24:21'Coming up - a minor inconvenience in Wales.'
0:24:21 > 0:24:23And you've got to come down two flights of stairs
0:24:23 > 0:24:25to actually go to the loo.
0:24:26 > 0:24:29'And a rather more major one in Chatham.'
0:24:29 > 0:24:32The initial person I got off the street let me down,
0:24:32 > 0:24:34the electrician, who took my money and ran away.
0:24:38 > 0:24:41Back now to the South London borough of Streatham,
0:24:41 > 0:24:46where earlier I viewed a three-bed terrace on a street of two halves.
0:24:46 > 0:24:48I am a little disappointed that it's not one of
0:24:48 > 0:24:51the lovely period cottages on the other side of the road,
0:24:51 > 0:24:54but let's not judge a book by its cover.
0:24:54 > 0:24:58What these houses lack in character they really make up for in space.
0:24:58 > 0:25:02However, it did have one of my pet hates...
0:25:02 > 0:25:04Downstairs bathroom!
0:25:04 > 0:25:07With a guide price of £235,000 at auction,
0:25:07 > 0:25:12the property was bought for a whopping 111,000
0:25:12 > 0:25:15over the guide price by events manager David and his wife Claire.
0:25:15 > 0:25:17I'm really excited.
0:25:17 > 0:25:20It's a bit of a big project for me so I'm very nervous about it.
0:25:20 > 0:25:24- Are you?- Yeah, I really hope I'm going to get it right.
0:25:24 > 0:25:28In order to get it right, he does have one thing in his favour...
0:25:28 > 0:25:31- Claire's an interior designer. - Perfect! Wow!
0:25:31 > 0:25:34So, she's going to come in here and put her stamp on it.
0:25:34 > 0:25:38- Yeah, absolutely, but she has quite an expensive stamp.- Really?
0:25:38 > 0:25:42David does have some idea of what needs to be done.
0:25:42 > 0:25:44I don't rate downstairs bathrooms.
0:25:44 > 0:25:47I'm hoping to move it upstairs and turn that, maybe, into a toilet,
0:25:47 > 0:25:50because I think it is good to have downstairs loo.
0:25:50 > 0:25:53David and Claire had what I thought was a rather tight budget of 30,000
0:25:53 > 0:25:55which included a loft conversion,
0:25:55 > 0:25:58and they hoped to have it done in three to four months
0:25:58 > 0:26:00whilst living there.
0:26:00 > 0:26:02Six months later, we're back to find out
0:26:02 > 0:26:06if Claire's keen and expensive eye has been hard at work.
0:26:12 > 0:26:16Wow, no more banoffee pie decor, I'm pleased to say.
0:26:16 > 0:26:20But what I'm looking at is very sweet indeed.
0:26:20 > 0:26:22So, how are Claire and David feeling?
0:26:22 > 0:26:25Exhausted. A bit relieved.
0:26:25 > 0:26:27I'm really happy with the end result.
0:26:27 > 0:26:29I'm delighted to have finally finished the house.
0:26:29 > 0:26:33This is an amazing transformation, and very, very tasteful.
0:26:33 > 0:26:35Well done, Claire, and her design scheme.
0:26:35 > 0:26:37And David was obviously hard at work
0:26:37 > 0:26:40as there appeared to be quite a few walls missing.
0:26:40 > 0:26:42When we came to knocking down the walls,
0:26:42 > 0:26:47I realised how much space there was and so I phoned Claire quickly
0:26:47 > 0:26:49when she was at work and said,
0:26:49 > 0:26:51"Claire, could I knock down another wall?"
0:26:51 > 0:26:54And she said, "Wait till I get home!"
0:26:54 > 0:26:58But, yeah, we ended up taking another wall down,
0:26:58 > 0:27:01which opened up the whole of the kitchen area.
0:27:01 > 0:27:05We still have a downstairs WC but now it's just one small WC.
0:27:05 > 0:27:08We moved the utilities under the stairs.
0:27:08 > 0:27:09As an interior designer,
0:27:09 > 0:27:13did Claire hold the upper hand in this restructuring of the space?
0:27:13 > 0:27:16A lot of the design elements we actually did together
0:27:16 > 0:27:18in terms of putting the bathroom in upstairs.
0:27:18 > 0:27:20We kind of worked out the ideas together.
0:27:20 > 0:27:23So, this is our upstairs bathroom.
0:27:23 > 0:27:25When we bought the house the stairs came straight up
0:27:25 > 0:27:28and then stopped just in the middle of where our bathroom is now,
0:27:28 > 0:27:29and then you'd just walk around,
0:27:29 > 0:27:32and there was a kind of little, funny, tiny loo just here.
0:27:32 > 0:27:33But it wasn't very satisfactory
0:27:33 > 0:27:35and it seemed to be a lot of waste of space.
0:27:35 > 0:27:37To have the bathroom here and to have the turn,
0:27:37 > 0:27:39we moved the stairs back a bit,
0:27:39 > 0:27:41and that gave us loads of room downstairs to be able to move
0:27:41 > 0:27:43the staircase back and fit the bathroom and upstairs.
0:27:43 > 0:27:46# Upstairs room
0:27:46 > 0:27:48# Is cool and bright... #
0:27:48 > 0:27:51We were going to do the loft but in the end we couldn't, really,
0:27:51 > 0:27:55because that's where we had to put all our stuff.
0:27:55 > 0:27:57And also, from a time point of view.
0:27:57 > 0:28:00I mean, we're glad to finish.
0:28:00 > 0:28:01This is our first ever project
0:28:01 > 0:28:04and we didn't really want it to drag on for a couple of years.
0:28:04 > 0:28:08# Upstairs room
0:28:11 > 0:28:13# Upstairs room... #
0:28:13 > 0:28:15I think David and Claire have done an amazing job,
0:28:15 > 0:28:19particularly with the kitchen and moving the bathroom upstairs.
0:28:19 > 0:28:21But there was always the garden to be tackled.
0:28:22 > 0:28:24There's quite a lot out here.
0:28:24 > 0:28:28But it's turned out really good. I'm really happy with it.
0:28:28 > 0:28:30Lovely bird bath, but unfortunately,
0:28:30 > 0:28:32right slap bang in the middle of the garden,
0:28:32 > 0:28:34so the worst possible place for it.
0:28:34 > 0:28:35And also, a monstrosity of a shed -
0:28:35 > 0:28:38blocked all the light from the windows
0:28:38 > 0:28:42into the bathroom that's now turned into the dining area.
0:28:42 > 0:28:44After we'd decked this area, we just bought some turf
0:28:44 > 0:28:47and put a new lawn down which I think just transforms it.
0:28:47 > 0:28:50It's now, for me, a really nice place to hang out.
0:28:50 > 0:28:54# It took a whole lot of doing
0:28:54 > 0:28:56# But we did it
0:28:56 > 0:28:59# Yes, we did, girl
0:28:59 > 0:29:00# Oh
0:29:00 > 0:29:03# Lots of doing
0:29:03 > 0:29:04# But we did it
0:29:04 > 0:29:07# Yes, we did, girl... #
0:29:07 > 0:29:09They've gone over their timescale by a couple of months,
0:29:09 > 0:29:13but working full-time means they've not done badly at all.
0:29:13 > 0:29:15David said he was going to do the work himself
0:29:15 > 0:29:19so he wasn't worried about his 30-grand budget, but I am.
0:29:19 > 0:29:21How much have they spent?
0:29:22 > 0:29:25We've probably hit 30k...well, probably like 25, actually.
0:29:25 > 0:29:29When you get to the end of the project and you're tired
0:29:29 > 0:29:33and you've got actual work that you have to do to earn a living,
0:29:33 > 0:29:37then you tend to get builders in and that's another cost.
0:29:37 > 0:29:41So I think, probably the last month and a half of the project
0:29:41 > 0:29:42was the most costly of it.
0:29:42 > 0:29:46We probably spent about a third of our budget in that time.
0:29:46 > 0:29:48This is a lovely home
0:29:48 > 0:29:50and this renovation was never about making a profit.
0:29:50 > 0:29:52I'm sure they would like to hear
0:29:52 > 0:29:54some professional opinions on their work.
0:29:54 > 0:29:57We asked two local estate agents to give us their thoughts.
0:29:57 > 0:30:00First, the agent who saw the house in its original state.
0:30:00 > 0:30:04My first impression of this property is they've done a really good job.
0:30:04 > 0:30:07They've given it a really contemporary feel,
0:30:07 > 0:30:10good-sized rooms offering practical living space
0:30:10 > 0:30:12throughout the entire property.
0:30:12 > 0:30:16Two reception rooms, good-sized kitchen with breakfast table,
0:30:16 > 0:30:19lovely doors leading out onto a nice decked garden,
0:30:19 > 0:30:23and it's a good family property. Yeah, just a good property.
0:30:23 > 0:30:26The first impressions of the property are really, really good.
0:30:26 > 0:30:27It's lovely, bright and airy
0:30:27 > 0:30:30and the property really opens up towards the back.
0:30:30 > 0:30:32The kitchen area going into that sort of dining area,
0:30:32 > 0:30:34through to the garden is a real selling point.
0:30:34 > 0:30:35It's a lovely open space
0:30:35 > 0:30:38and lots of light comes through those back doors.
0:30:38 > 0:30:41I think the people that have refurbished this property have done a great job.
0:30:41 > 0:30:42It looks fantastic,
0:30:42 > 0:30:45perfect for what people are looking for in this market.
0:30:45 > 0:30:49Positive thoughts. How could it be otherwise? They've done a great job.
0:30:49 > 0:30:50This is Claire and David's home,
0:30:50 > 0:30:53but it's an investment in the future, too.
0:30:53 > 0:30:58And they did buy it for 346,000, well over the guide price.
0:30:58 > 0:31:01Still, they've been sensible with that spend of 25,000,
0:31:01 > 0:31:05so their total investment is 371,000.
0:31:05 > 0:31:07What could it sell for?
0:31:07 > 0:31:10I'd value this property at £535,000.
0:31:10 > 0:31:13We would put it onto the market for £525,000
0:31:13 > 0:31:18looking to achieve offers around the £500,000 mark.
0:31:18 > 0:31:22Outrageous! That's brilliant. No, that's fantastic.
0:31:22 > 0:31:24Good, that's what we hoped it would be.
0:31:24 > 0:31:26Outrageously good, David.
0:31:26 > 0:31:28Those figures would give a profit,
0:31:28 > 0:31:31before the usual taxes and expenses,
0:31:31 > 0:31:33of between 124,000 to 159,000.
0:31:33 > 0:31:36So, would David and Claire be tempted
0:31:36 > 0:31:38to return to the auction room soon?
0:31:38 > 0:31:40I'd definitely do it again
0:31:40 > 0:31:43and I think auctions are a really good way to get a good deal.
0:31:43 > 0:31:46And do they feel they've got a good deal?
0:31:46 > 0:31:47Yes, it was definitely worth it.
0:31:47 > 0:31:51- We're really happy with what we've done.- Yeah, definitely.
0:31:51 > 0:31:55I'm really proud of what Claire's done and all the work that she's done,
0:31:55 > 0:31:57everything she's been through.
0:31:57 > 0:31:58I'm really proud of Dave.
0:31:58 > 0:32:01Dave really tested his DIY skills to the limit.
0:32:01 > 0:32:03Oh, shucks!
0:32:07 > 0:32:10This is the village of Troed-y-rhiw in South Wales.
0:32:10 > 0:32:14The literal translation of Troed-y-rhiw is "foot of the hill"
0:32:14 > 0:32:17and that's certainly fitting for our location here.
0:32:17 > 0:32:20Three and a half miles outside Merthyr Tydfil,
0:32:20 > 0:32:2145 minutes from Cardiff,
0:32:21 > 0:32:26and I'm here to see a house very typical of this former mining town.
0:32:26 > 0:32:31This three-bed mid-terrace had a guide price at auction of £32,000
0:32:31 > 0:32:36and, although it looks like a standard two-storey terrace at the front,
0:32:36 > 0:32:40at the rear you can see it is actually three storeys in height.
0:32:40 > 0:32:44# Lifted, lifted, lifted, lifted...#
0:32:44 > 0:32:50In out of the wet... and straight into the entrance hall.
0:32:50 > 0:32:55A nice few features there. And then through into the sitting room area.
0:32:55 > 0:32:59Lovely fireplace(!)
0:32:59 > 0:33:01Nice bit of quilting.
0:33:01 > 0:33:05You know, I actually like that. Very, very... Well, I don't know.
0:33:05 > 0:33:08What do you reckon? 1920s? 1930s, maybe?
0:33:08 > 0:33:12But it's probably going to go, to be honest.
0:33:12 > 0:33:16And something else which you need to have go is the damp -
0:33:16 > 0:33:19underneath the bay window here,
0:33:19 > 0:33:22all in here, is in a right old state.
0:33:22 > 0:33:25My guess is the classic thing has happened -
0:33:25 > 0:33:28the flashing above here or whatever's on top of here
0:33:28 > 0:33:30has failed at some point,
0:33:30 > 0:33:33it's got into here, created a real damp problem.
0:33:33 > 0:33:36As usual, the problem is what's that done to the floor joists?
0:33:36 > 0:33:39You need to dig down there and find that out.
0:33:39 > 0:33:44But it's a nice room and lots of light coming in. Let's carry on.
0:33:44 > 0:33:48Also on this floor, there's another reception room at the back,
0:33:48 > 0:33:50again a bit dated in terms of decor.
0:33:50 > 0:33:54You could possibly think about knocking these two rooms through
0:33:54 > 0:33:57to make a large, modern living space.
0:33:57 > 0:34:01Then it's down a flight of stairs to the lower ground floor.
0:34:01 > 0:34:03So, downstairs and it...
0:34:04 > 0:34:07It makes sense for the Welsh valleys to have
0:34:07 > 0:34:11a house on levels like this, given the topography of the land here.
0:34:11 > 0:34:13But it still feels a bit strange.
0:34:13 > 0:34:16I've come down the stairs from those two reception rooms
0:34:16 > 0:34:20into this area here, another sort of living area.
0:34:20 > 0:34:24You've got, basically, a loo over that way
0:34:24 > 0:34:27and then through here to your kitchen.
0:34:27 > 0:34:30And off the kitchen is the only bathroom.
0:34:30 > 0:34:33Now, clearly that, as a lay out, is fairly rubbish
0:34:33 > 0:34:36because imagine you're in bed at night on the top floor
0:34:36 > 0:34:40and you've got to come down two flights of stairs
0:34:40 > 0:34:42to actually go to the loo.
0:34:42 > 0:34:44It's not ideal.
0:34:44 > 0:34:46I mean, it is fairly typical for this area, but still,
0:34:46 > 0:34:48I'd want to see if I could do something about it -
0:34:48 > 0:34:51maybe shift the bathroom up onto the top floor.
0:34:51 > 0:34:55The good news, though, is nice views out of the windows here
0:34:55 > 0:34:58and access to the garden. So, it's OK.
0:34:58 > 0:35:01Just, like I said, takes a bit of getting used to.
0:35:01 > 0:35:05The back garden is a decent size and the good news is
0:35:05 > 0:35:09there's rear vehicle access to a garage at the back.
0:35:09 > 0:35:12So, now up to the top floor.
0:35:12 > 0:35:16So, is the thorny issue of the bathroom and loo
0:35:16 > 0:35:20being in such an inconvenient place resolvable?
0:35:20 > 0:35:22Well, up on the top floor here, three bedrooms.
0:35:22 > 0:35:26They're all good sizes and nice views out to the valleys as well.
0:35:26 > 0:35:29But look at this, on the landing here.
0:35:29 > 0:35:31A bit of completely wasted space.
0:35:31 > 0:35:36So I'm wondering if this, which I think is not a supporting wall,
0:35:36 > 0:35:40take that out, move that wall that way slightly,
0:35:40 > 0:35:44and maybe create a bathroom, certainly a loo, here.
0:35:44 > 0:35:48It would steal a bit of space from that room but I think
0:35:48 > 0:35:53it would be worth it to solve one of the major issues of this property.
0:35:53 > 0:35:56But it all comes down to balancing the budget.
0:35:56 > 0:35:59Is it really worth rejigging the lay out here?
0:35:59 > 0:36:03With a guide price of £32,000, would you get your money back?
0:36:03 > 0:36:07Time to ask a local estate agent for her point of view.
0:36:07 > 0:36:11I would put the kitchen downstairs
0:36:11 > 0:36:14and maybe have it as a kitchen dining area.
0:36:14 > 0:36:17Put the toilet back into where the bathroom is so that you can
0:36:17 > 0:36:18open the whole of the back
0:36:18 > 0:36:20of the house out,
0:36:20 > 0:36:22and then I'd put, to add value to the property,
0:36:22 > 0:36:25a toilet into one of the bedrooms,
0:36:25 > 0:36:28but keeping the bedroom, just putting it on like an en suite toilet.
0:36:28 > 0:36:34So, what about the rental values once the property is renovated?
0:36:34 > 0:36:37This house would rent very easily as there's a high demand
0:36:37 > 0:36:41for rental properties in this area, particularly for three bedrooms.
0:36:41 > 0:36:43You'd get for this particular house
0:36:43 > 0:36:46about £480 to £500 per calendar month.
0:36:46 > 0:36:50And if all the recommended refurbishment work was completed,
0:36:50 > 0:36:52what would be the resale value?
0:36:52 > 0:36:55We would put this house on the market in the region of about
0:36:55 > 0:37:02£98,000 and would look to expect to get about £95,000 or £94,000.
0:37:04 > 0:37:06Well, it's certainly a lot of property for the money,
0:37:06 > 0:37:08especially at that guide price.
0:37:08 > 0:37:10But the lay out is far from ideal.
0:37:10 > 0:37:14Bedrooms on the top, loo and bathroom on the bottom,
0:37:14 > 0:37:16just doesn't work.
0:37:16 > 0:37:18Still, an interesting one to go for.
0:37:18 > 0:37:21Let's see who fancied it when it went under the hammer.
0:37:24 > 0:37:28Ladies and gents, I'm going to put this straight in
0:37:28 > 0:37:30at the reserve with my proxy bid at 35.
0:37:30 > 0:37:3335, I'm bid. I'm in the market. Do I seek any advance on 35?
0:37:34 > 0:37:3736, thank you. Proxy bid's 37.
0:37:37 > 0:37:428. Thank you. 9. 40. 41.
0:37:43 > 0:37:45My proxy bid's 41,000.
0:37:45 > 0:37:4842, thank you. 42,000. My proxy's out.
0:37:48 > 0:37:52Any advance on 42,000? 43, thank you. 44.
0:37:52 > 0:37:5344, and 5.
0:37:53 > 0:37:5545, and 6.
0:37:55 > 0:37:57I've got 46,000.
0:37:57 > 0:37:5947, are you sure?
0:37:59 > 0:38:0247, thank you. 47, looking for 48 off you, madam.
0:38:02 > 0:38:05Any advance? Be quick, 47,000 I'm bid.
0:38:05 > 0:38:06Last chance...
0:38:06 > 0:38:0947,000 to you, madam. £47,000.
0:38:10 > 0:38:15That final bid of £47,000 was made by Cardiff-based Wendy.
0:38:15 > 0:38:18But Wendy was actually at the auction
0:38:18 > 0:38:21bidding on behalf of somebody else - her son, Tom.
0:38:21 > 0:38:25# If there's somebody else you should let me know
0:38:25 > 0:38:29# If there's somebody else better let him go... #
0:38:29 > 0:38:32'And it was Tom I met back at the property.'
0:38:32 > 0:38:33Tom, great to meet you.
0:38:33 > 0:38:36- And you.- Congratulations. - Thank you very much.
0:38:36 > 0:38:39- Tell me why you wanted to buy this house.- Well, it's a nice house.
0:38:39 > 0:38:42Three-storey, as you can see, a nice area.
0:38:42 > 0:38:44I know a few people from the local area.
0:38:44 > 0:38:48One guy, who's actually helping me restore the property,
0:38:48 > 0:38:50- is from the next valley along. - Oh, great.
0:38:50 > 0:38:52And it just seemed like a good place
0:38:52 > 0:38:54to start my property development career, as it were.
0:38:54 > 0:38:55So this is number one?
0:38:55 > 0:38:57- This is number one, yeah. - Is it?- Yeah.
0:38:57 > 0:38:59What have you done up until now?
0:38:59 > 0:39:00Well, the last few years
0:39:00 > 0:39:04I've been working abroad on super-yachts, just crewing.
0:39:04 > 0:39:05Crewing a super-yacht?
0:39:05 > 0:39:08Yeah, in the Mediterranean and in the Caribbean and South America.
0:39:08 > 0:39:11- What's a super-yacht? - Just a privately owned motor yacht.
0:39:11 > 0:39:15A big thing, the sort of thing that Russian billionaires own?
0:39:15 > 0:39:18The kind of thing that Abramovich has and stuff like that.
0:39:18 > 0:39:21- And what did you do on it? - Just crewing, driving a bit.
0:39:21 > 0:39:23You know, just going around and cleaning the boat is the main job.
0:39:23 > 0:39:26And you get to swan about in the Caribbean and nice places?
0:39:26 > 0:39:30Yeah, well, wherever the guests or owner want to go, you go there.
0:39:30 > 0:39:33It begs the question, why on earth have you stopped doing that?
0:39:33 > 0:39:34Because I turned 25 this year
0:39:34 > 0:39:37and I thought, after three years of doing it,
0:39:37 > 0:39:39I want to come home and be based somewhere
0:39:39 > 0:39:41and try and get into property.
0:39:41 > 0:39:43So, I decided to do it and here I am.
0:39:43 > 0:39:46# So hoist up the John B's sail
0:39:46 > 0:39:50# See how the mainsail sets... #
0:39:50 > 0:39:54Sailing the seas may sound like a very nice way to earn a living
0:39:54 > 0:39:58but Tom has come back to some harsh economic realities.
0:39:58 > 0:39:59When he returned home,
0:39:59 > 0:40:02he resumed his previous career as an estate agent,
0:40:02 > 0:40:04but was then made redundant.
0:40:04 > 0:40:08So no-one knows better than him the difficulties of the property market.
0:40:08 > 0:40:10What he doesn't know much about
0:40:10 > 0:40:12is the practical side of renovation,
0:40:12 > 0:40:15so he's enlisted the help of his friend Darryl.
0:40:15 > 0:40:17He's helping me with his brother,
0:40:17 > 0:40:21- and he's done five properties already in the local area.- Right.
0:40:21 > 0:40:24His brother is a professional builder as well, so it's very convenient.
0:40:24 > 0:40:26I can learn a lot from them both.
0:40:26 > 0:40:28Is that the idea? You are going to be hands-on, are you?
0:40:28 > 0:40:29Yeah, very hands-on.
0:40:29 > 0:40:33There'll be times when I'm taking my sleeping bag and sleeping here.
0:40:33 > 0:40:35- Great!- Just so I can get up earlier and carry on.
0:40:35 > 0:40:37- Are you looking forward to it? - Very much so.
0:40:37 > 0:40:40It's exciting. A bit daunting, but exciting.
0:40:40 > 0:40:43What are your plans for it?
0:40:43 > 0:40:45Well, we were originally going to do an attic conversion,
0:40:45 > 0:40:48but we've decided that's just going to be too much money.
0:40:48 > 0:40:51It's just too much effort, really.
0:40:51 > 0:40:54- Where we're standing now is going to be the kitchen.- Right.
0:40:54 > 0:40:56The original kitchen through there,
0:40:56 > 0:40:59we're going to put a shower room in with an extra toilet
0:40:59 > 0:41:00so there are two toilets,
0:41:00 > 0:41:04and keep the bathroom with a new bathroom in it.
0:41:04 > 0:41:07- Knock through the walls on the first level.- Oh, OK.
0:41:07 > 0:41:08So it's a big living room,
0:41:08 > 0:41:11then keep the bedrooms as they are, just redecorate.
0:41:11 > 0:41:13Maybe move a bit around.
0:41:13 > 0:41:17What about the fact that you'd have to travel down two flights of stairs
0:41:17 > 0:41:19to get to the loo if you're in the bedrooms?
0:41:19 > 0:41:23The thing is, most houses in this area are like that.
0:41:23 > 0:41:27That's why we were originally going to put an attic conversion in,
0:41:27 > 0:41:29but people are used to it around here.
0:41:29 > 0:41:30People don't mind doing it.
0:41:30 > 0:41:33Well, I'm not convinced about having two loos in the basement
0:41:33 > 0:41:37and none on the top floor. It might not be unusual around here,
0:41:37 > 0:41:40but I reckon in a fairly difficult market you have to make
0:41:40 > 0:41:43the house as attractive to buyers as possible.
0:41:43 > 0:41:47But given Tom has a maximum of £20,000 to spend,
0:41:47 > 0:41:50I can see that he wants to be careful on his first project.
0:41:50 > 0:41:53He's hoping to make a £25,000 profit.
0:41:53 > 0:41:54What about outside?
0:41:54 > 0:41:57Outside, we don't know what we're going to do outside.
0:41:57 > 0:42:02We're thinking to put a little conservatory on the back
0:42:02 > 0:42:05so we can have the kitchen opened up into the conservatory.
0:42:05 > 0:42:08Of course, spruce the garage up at the back a bit.
0:42:08 > 0:42:10Do a bit of gardening, make it nice and tidy.
0:42:10 > 0:42:13And it would appear now that Tom has left the seafaring behind,
0:42:13 > 0:42:15he really is ready to roll.
0:42:15 > 0:42:17So does that mean more properties like this in the future?
0:42:17 > 0:42:19Yes, most definitely.
0:42:19 > 0:42:22Hopefully I'll get about three or four on the go to start off with
0:42:22 > 0:42:26each year, cos I'm giving myself a six-week timeline here.
0:42:26 > 0:42:27- Oh, wow.- Yes.
0:42:28 > 0:42:31Quite a short amount of time for quite a bit of work,
0:42:31 > 0:42:35but, as I say, I'll be staying up here in a sleeping bag,
0:42:35 > 0:42:36curled up in a corner.
0:42:36 > 0:42:39- Hopefully things will go well. - Congratulations, good luck with it.
0:42:39 > 0:42:42- Thank you very much.- We look forward to seeing how you get on.- Thank you.
0:42:42 > 0:42:46Well, from super yachts in the Caribbean
0:42:46 > 0:42:52to rainy days property developing in the Welsh Valleys.
0:42:52 > 0:42:57Tom certainly seems to have some good advisors. How will he get on?
0:42:57 > 0:43:00Will his project end up all at sea?
0:43:00 > 0:43:02You can find out a little later in the show.
0:43:06 > 0:43:10Well, it's been a while now since we last saw those properties.
0:43:10 > 0:43:11There should have been some work done,
0:43:11 > 0:43:15- but, Martin, as you know, it's not always the case.- Nope.
0:43:15 > 0:43:18There's only one way to find out, let's go back and see.
0:43:18 > 0:43:21Back to Chatham in Kent now where we met Anthony who,
0:43:21 > 0:43:24having been thwarted at several auctions,
0:43:24 > 0:43:28finally bought this three-bedroomed house for 92,000.
0:43:28 > 0:43:32He and his eldest son, James, came along to tell me
0:43:32 > 0:43:37about their plans, and also how they'd broken a Hammer golden rule.
0:43:37 > 0:43:41I wanted to buy a property, and this happened to be in the auction.
0:43:41 > 0:43:44Because I'd been in so many auctions in the last two months,
0:43:44 > 0:43:48- I just decided I'll buy one. I hadn't actually seen it.- You hadn't seen it?
0:43:48 > 0:43:49Oh, no.
0:43:49 > 0:43:52You have no idea how crazy that is.
0:43:52 > 0:43:56- I do know exactly how crazy it is. - Given that I'm risk-averse.
0:43:56 > 0:43:58Perhaps a revision of the meaning of the phrase
0:43:58 > 0:44:00might be required, Anthony.
0:44:00 > 0:44:03But let's face it, despite Lucy and I going on about it,
0:44:03 > 0:44:05Anthony is not the first and he won't, unfortunately,
0:44:05 > 0:44:08be the last to take a chance and buy blind.
0:44:08 > 0:44:11But his reason for the purchase was admirable -
0:44:11 > 0:44:15Anthony was investing in property for his two sons.
0:44:15 > 0:44:18- What do you think of it then? - I actually really like it.
0:44:18 > 0:44:19I think it has potential.
0:44:19 > 0:44:22It could be like a really good property once renovated.
0:44:23 > 0:44:26Spot-on, James. This is a really good house.
0:44:26 > 0:44:28The only worry was that rather large crack
0:44:28 > 0:44:30down the side of the door.
0:44:30 > 0:44:34But Anthony's structural engineer had assured him it was historical.
0:44:34 > 0:44:38Anthony had a realistic budget of £20,000 to renovate this house
0:44:38 > 0:44:42and deal with the damp, the crack and anything else unforeseen
0:44:42 > 0:44:44that might come to light, or was a danger.
0:44:45 > 0:44:47Four months later, we're back to find out
0:44:47 > 0:44:53if risk-averse Anthony's gamble with his £92,000 has paid off.
0:44:53 > 0:44:55MUSIC: "The Gambler" by Kenny Rogers
0:44:55 > 0:44:56# You got to know when to hold 'em
0:44:56 > 0:44:59# Know when to fold 'em
0:44:59 > 0:45:01# Know when to walk away
0:45:02 > 0:45:04# And know when to run
0:45:04 > 0:45:07# You never count your money
0:45:07 > 0:45:09# When you're sitting at the table
0:45:09 > 0:45:13# There'll be time enough for counting
0:45:13 > 0:45:14# When the dealing's done. #
0:45:15 > 0:45:17The work that has been done...
0:45:17 > 0:45:21If you start from the outside, the door's been replaced,
0:45:21 > 0:45:23the windows have been double glazed.
0:45:23 > 0:45:25The wall that was,
0:45:25 > 0:45:29the structural engineer said was peeling off has been pinned.
0:45:29 > 0:45:34All the ceilings have come down and have been replaced.
0:45:34 > 0:45:37The plaster on the wall, all of the walls were
0:45:37 > 0:45:41so crumbly that they had to be hacked off and replastered as well.
0:45:41 > 0:45:46New floors, new kitchen, new bathroom. New rewiring.
0:45:46 > 0:45:50The boiler has been moved from the room upstairs
0:45:50 > 0:45:51to the kitchen down here.
0:45:55 > 0:45:57Now we're just waiting for the finish.
0:45:59 > 0:46:00It's been a long, long time
0:46:00 > 0:46:03since anyone has shown any care for this property,
0:46:03 > 0:46:07so what Anthony has achieved in just four months is fantastic.
0:46:08 > 0:46:12Working for the NHS meant that Anthony was only able
0:46:12 > 0:46:15to give the project his full attention at the weekends.
0:46:15 > 0:46:17This meant getting in the professionals,
0:46:17 > 0:46:20but that didn't start very well.
0:46:20 > 0:46:23Most of the work we had done by people whose trade it is.
0:46:25 > 0:46:30I was mainly a labourer and project manager combined in one.
0:46:31 > 0:46:36But I had people, mainly referrals,
0:46:36 > 0:46:40especially after the initial person I got off the street let me down -
0:46:40 > 0:46:43the electrician who took my money and ran away.
0:46:45 > 0:46:47That sounds like rotten luck.
0:46:47 > 0:46:49Anthony did the right thing latterly in getting
0:46:49 > 0:46:52recommendations for his tradespeople.
0:46:52 > 0:46:55Another Hammer golden rule is never pay all upfront.
0:46:55 > 0:46:59Reputable tradespeople will not ask you for huge sums of money.
0:46:59 > 0:47:02If your builder does, think twice.
0:47:02 > 0:47:05Luckily, Anthony finally did get the right men for the job.
0:47:05 > 0:47:09I had plasterers referred to me...
0:47:11 > 0:47:15..and an electrician from a friend I know that they've worked for.
0:47:15 > 0:47:17Who are the other tradesmen?
0:47:17 > 0:47:23The carpenter, we go to the same church and I know him.
0:47:23 > 0:47:26He's done brilliant work in the property.
0:47:27 > 0:47:33He's worked both as a carpenter and part project manager as well.
0:47:36 > 0:47:39One of the rooms that needed the most attention was the bathroom,
0:47:39 > 0:47:41and Anthony is more than pleased with the results.
0:47:42 > 0:47:47We've had everything ripped up and replaced. New suites, new tiling.
0:47:47 > 0:47:49One that makes me really happy,
0:47:49 > 0:47:52that I wanted to do a proper job in this house,
0:47:52 > 0:47:56because that was something that seemed like a pillar
0:47:56 > 0:47:57or chimney stack that was boxed in here.
0:47:57 > 0:48:01When I took out the boxing, there was no support for the bricks,
0:48:01 > 0:48:03so it could have come down any time.
0:48:03 > 0:48:06Given that the kitchen is below and there's the hallway gap
0:48:06 > 0:48:10there as well in the flooring, it could have been dangerous.
0:48:10 > 0:48:12Yeah, it's come up quite nicely.
0:48:13 > 0:48:16There's a few things to do yet, but it's nearly there.
0:48:16 > 0:48:18Anthony's sons, James and Alex,
0:48:18 > 0:48:21are lined up to do the garden renovations,
0:48:21 > 0:48:24but it seems they still have some work ahead of them.
0:48:24 > 0:48:28Delays and the initial difficulties in finding reliable tradespeople
0:48:28 > 0:48:30has meant Anthony's budget has taken a hit.
0:48:30 > 0:48:35He has spent £28,000 so far rather that 20.
0:48:35 > 0:48:38That takes his total investment to £120,000.
0:48:39 > 0:48:43We asked two estate agents to come along and see Anthony's handiwork.
0:48:43 > 0:48:46Coming back to the property for the second time, the changes that have
0:48:46 > 0:48:50been made are really suitable for either the sales or rental market.
0:48:50 > 0:48:53Property's been finished to a good standard.
0:48:53 > 0:48:54It's all about the finish.
0:48:54 > 0:48:57Nobody sees how it's done until it's finished.
0:48:57 > 0:48:58That's what everybody looks at.
0:48:58 > 0:49:00The bathroom looks nearly finished
0:49:00 > 0:49:02and it looks like it's been done really well.
0:49:02 > 0:49:05Hopefully everything else will be done in the same standard.
0:49:05 > 0:49:07To put the property on the market for sale,
0:49:07 > 0:49:11I would recommend an asking price of £140,000.
0:49:11 > 0:49:13I'd market it at £135,000,
0:49:13 > 0:49:17but I'd look to achieve anything over the £130,000.
0:49:17 > 0:49:19I think they are the professionals and they know the market,
0:49:19 > 0:49:23but the house is not for sale anyway.
0:49:23 > 0:49:26That's a potential profit of between £10,000 and £20,000.
0:49:26 > 0:49:30Anthony's always wanted a house as an investment for his children,
0:49:30 > 0:49:33but even that plan may have changed a little.
0:49:33 > 0:49:39Having come to Chatham, seen the area, seen Kent, I quite like it.
0:49:39 > 0:49:41We'd like to live here.
0:49:43 > 0:49:46That's reflected in how, in my approaching it
0:49:46 > 0:49:49and doing the place up, but the jury's still out...
0:49:52 > 0:49:53..for my wife and kids.
0:49:56 > 0:49:58After the experience, is there any wisdom
0:49:58 > 0:50:01he would like to pass on to others heading to the auction?
0:50:01 > 0:50:04It goes without saying, see the property.
0:50:05 > 0:50:09Be realistic in what you want to do with the property before you start.
0:50:09 > 0:50:12Wise words, Anthony. Wise words indeed.
0:50:18 > 0:50:21When Tom returned to his home in Troed-y-rhiw
0:50:21 > 0:50:24after spending three years on the world's oceans,
0:50:24 > 0:50:27he arrived back to harsh economic times.
0:50:27 > 0:50:30But Tom had ambition to be a property developer.
0:50:31 > 0:50:32His first project -
0:50:32 > 0:50:38this three-bed mid-terrace house bought for £47,000 at auction.
0:50:38 > 0:50:41But why this house in particular?
0:50:41 > 0:50:44Well, it's a nice house. Three-storey, as you can see.
0:50:44 > 0:50:48Nice area. I know a few people from the local area.
0:50:48 > 0:50:49One guy who is actually helping me
0:50:49 > 0:50:52restore the property is from the next valley along.
0:50:52 > 0:50:53Oh, great.
0:50:53 > 0:50:58It just seemed like a good place to start my property development career,
0:50:58 > 0:51:00- as it were.- So this is number one in your...?
0:51:00 > 0:51:01- This is number one.- Oh, is it?
0:51:01 > 0:51:04- Are you looking forward to it? - Very much so. It's exciting.
0:51:04 > 0:51:06A bit daunting, but exciting.
0:51:06 > 0:51:09Daunting and exciting? There's no doubt about that.
0:51:09 > 0:51:11I had to admire Tom's courage.
0:51:11 > 0:51:14There was a lot of house here for a first attempt.
0:51:14 > 0:51:17He had a £20,000 budget and so had to be careful.
0:51:17 > 0:51:22Nonetheless, I was a bit concerned that his plan to keep the bathroom
0:51:22 > 0:51:27downstairs might make the house less likely to sell in a tricky market.
0:51:27 > 0:51:30What about the fact that you have to travel two flights of stairs
0:51:30 > 0:51:32to get down to the loo if you're in the bedrooms.
0:51:32 > 0:51:35The thing is, most houses in this area are like that,
0:51:35 > 0:51:37so people are used to it around here.
0:51:37 > 0:51:39People don't mind doing it.
0:51:39 > 0:51:42I'm all for not getting in above your head on a first development,
0:51:42 > 0:51:45so maybe Tom was right to be cautious.
0:51:45 > 0:51:48He was already pushing it with a six-week timescale.
0:51:49 > 0:51:53Over a year and a half later, we're back.
0:51:53 > 0:51:57MUSIC: "You're The First, The Last, My Everything" by Barry White
0:52:09 > 0:52:12After buying it, we completely gutted it from top to bottom,
0:52:12 > 0:52:14brought it back to its original brick,
0:52:14 > 0:52:17got rid of all the rubble and then started rebuilding.
0:52:17 > 0:52:20Then we had to structurise it by putting three lintels in,
0:52:20 > 0:52:23and we dug down in the basement
0:52:23 > 0:52:26so that it went down to put insulation in.
0:52:26 > 0:52:29Everything, really. It was just a complete rebuild.
0:52:30 > 0:52:31A lot of hard work.
0:52:33 > 0:52:37That is a bit of an understatement, Tom.
0:52:37 > 0:52:40Apart from a few details, like doors yet to be hung,
0:52:40 > 0:52:46the house interior is unrecognisable from before, an absolute triumph.
0:52:46 > 0:52:49Well, in this room there used to be two rooms here and a corridor.
0:52:49 > 0:52:52I just made it completely open-plan.
0:52:52 > 0:52:55Everyone likes open-plan nowadays, so I thought, "Open-plan it."
0:53:00 > 0:53:03A good decision and very well executed.
0:53:03 > 0:53:07The lower level clearly received the same amount of attention.
0:53:07 > 0:53:10The lay out downstairs was originally three rooms -
0:53:10 > 0:53:13a bathroom, a kitchen and a living room.
0:53:13 > 0:53:15I've made that completely open-plan as well
0:53:15 > 0:53:18with a brand-new kitchen, new tiled floor,
0:53:18 > 0:53:21and also French doors to the rear.
0:53:21 > 0:53:24I also put a bathroom with a bath and a toilet
0:53:24 > 0:53:26and shower room downstairs as well.
0:53:26 > 0:53:28So there is a bathroom in the basement,
0:53:28 > 0:53:33but did Tom listen to my thoughts about having a loo upstairs?
0:53:33 > 0:53:36I managed to steal a little bit of space from the bedrooms upstairs
0:53:36 > 0:53:39and put a shower room and a toilet.
0:53:39 > 0:53:42Those who need to trot off to the loo in the middle of the night,
0:53:42 > 0:53:43rejoice.
0:53:43 > 0:53:46I don't think Tom will regret that decision at all.
0:53:46 > 0:53:49It makes the house much more attractive to buyers.
0:53:49 > 0:53:53Tom, a former sailor, has definitely been on a voyage of discovery.
0:53:53 > 0:53:58It's actually incredible how many building regulations there are.
0:53:58 > 0:54:01You start doing one thing and then the building inspector comes in
0:54:01 > 0:54:04and tells you, you have to do it this way.
0:54:04 > 0:54:07It was a bit of a challenge to get everything sorted properly.
0:54:09 > 0:54:12Planning and building regulations are often the things
0:54:12 > 0:54:15that catch out even the most experienced developers.
0:54:15 > 0:54:18So Lucy and I would always urge you to do your homework
0:54:18 > 0:54:22cos, if you don't, it could cost you time.
0:54:22 > 0:54:25My initial timescale for the property was six weeks.
0:54:25 > 0:54:28It's taken about a year and a half now,
0:54:28 > 0:54:30mainly because we did not realise
0:54:30 > 0:54:33we were going to completely gut the property and rebuild.
0:54:33 > 0:54:35Also, we've been taking it slow
0:54:35 > 0:54:38so that the chap who has been working with me can teach me
0:54:38 > 0:54:41what I need to know about the building trade,
0:54:41 > 0:54:44and also we've had some family problems as well.
0:54:52 > 0:54:54You can never predict what life will throw at you,
0:54:54 > 0:54:56and that is quite an overrun,
0:54:56 > 0:55:00but it also served as a learning curve for Tom,
0:55:00 > 0:55:04so it's not time wasted. However, time costs money.
0:55:04 > 0:55:06I'm scared. Let's talk budget.
0:55:06 > 0:55:09My budget originally was £20,000.
0:55:09 > 0:55:13But as we completely gutted the property and rebuilt it...
0:55:13 > 0:55:15we did go quite over that.
0:55:15 > 0:55:20I think we went to about 75, so we did go quite far over,
0:55:20 > 0:55:23but I'm confident that we can still earn a profit.
0:55:25 > 0:55:32£75,000. That's £55,000 over the initial budget.
0:55:32 > 0:55:36Remember, the estate agents' top value for the property was 98,000.
0:55:38 > 0:55:41Again, Tom has achieved an awful lot here,
0:55:41 > 0:55:43the quality is there to be seen.
0:55:43 > 0:55:49However, the overspend brings the total expenditure to £122,000.
0:55:51 > 0:55:54Tom is still optimistic, but I'm worried.
0:55:54 > 0:55:57We asked two local agents to come along and have a look.
0:55:57 > 0:55:59How much value has Tom added to the property,
0:55:59 > 0:56:03and is it enough to turn a profit?
0:56:03 > 0:56:06First, the agent who saw the house before Tom started work.
0:56:07 > 0:56:10What they've done to this property is absolutely spectacular.
0:56:10 > 0:56:14The fact they've put in a toilet and a shower on the top floor
0:56:14 > 0:56:16has greatly added to the value of the property.
0:56:16 > 0:56:19They've absolutely done everything - hacked off all the walls,
0:56:19 > 0:56:21new kitchen, new bathrooms.
0:56:21 > 0:56:24Everything is absolutely perfect.
0:56:24 > 0:56:26Selling features of the property would be the overall size
0:56:26 > 0:56:28and square footage of the property.
0:56:28 > 0:56:31The fact that they've got the bathroom on the lower ground floor
0:56:31 > 0:56:32and the toilet on the first floor.
0:56:32 > 0:56:37The agents reckon the property would rent for £500 per calendar month,
0:56:37 > 0:56:40which would give Tom a yield of 5%.
0:56:40 > 0:56:44But what about resale given his spend of £122,000?
0:56:45 > 0:56:48I would market the property at £110,000,
0:56:48 > 0:56:53and we would expect to achieve between £95,000 and £100,000.
0:56:53 > 0:56:55If the owners were going to market this property,
0:56:55 > 0:56:57I would be looking at putting the property on
0:56:57 > 0:57:01between £110,000 and £115,000.
0:57:04 > 0:57:07I think Tom's first attempt to wrestle with the often
0:57:07 > 0:57:10treacherous world of property development will have left him
0:57:10 > 0:57:13with experiences that will benefit him for years to come.
0:57:15 > 0:57:21However, a potential £7,000 loss is not what we were hoping to hear.
0:57:21 > 0:57:23How does Tom feel about it?
0:57:24 > 0:57:27I'm very happy with the valuation.
0:57:27 > 0:57:31It's interesting to see the differential between who says what.
0:57:31 > 0:57:34I think when I do put it up, I'll put it on for about 115.
0:57:36 > 0:57:39Well, I'm going to keep my fingers crossed for Tom.
0:57:39 > 0:57:41After his sheer determination and hard work,
0:57:41 > 0:57:43he deserves to do well,
0:57:43 > 0:57:46and he's certainly keeping that positive outlook.
0:57:46 > 0:57:48There's still a few little bits and bobs to do,
0:57:48 > 0:57:51but now it's coming to an end I'm very pleased with the way
0:57:51 > 0:57:53the house has turned out, the way it looks.
0:57:53 > 0:57:56I'm just very pleased with it in general, really.
0:57:59 > 0:58:02So there you go, more plucky buyers experiencing the highs
0:58:02 > 0:58:05and lows of buying at auction.
0:58:05 > 0:58:08Join us next time for more auction action on Homes Under The Hammer.
0:58:08 > 0:58:10- We will see you then. - Goodbye.- Goodbye.