0:00:02 > 0:00:04Hello. If you have ever been tempted to buy at auction,
0:00:04 > 0:00:06well, perhaps now is the time to take the plunge,
0:00:06 > 0:00:09because there is so much variety on offer in those catalogues.
0:00:09 > 0:00:12There are literally hundreds of auctions going on throughout
0:00:12 > 0:00:14the country, throughout the year,
0:00:14 > 0:00:18So now is the time to head down and check out the auction action.
0:00:43 > 0:00:46People often ask us how to behave in the auction room.
0:00:46 > 0:00:50Yes, that's right - be visible, make sure the auctioneer can see you.
0:00:50 > 0:00:53Yes. Have a budget, and stick to it.
0:00:53 > 0:00:55Oh, and don't wave at friends across the auction room.
0:00:55 > 0:01:00Let's take a look what our buyers bid for on today's programme.
0:01:00 > 0:01:05Firstly, in Burnhope, County Durham, some eating habits are barking mad.
0:01:05 > 0:01:09- Your dogs eat vegetables? - Yes, potatoes, apples...beetroot.
0:01:11 > 0:01:16In central London, I've got to do the penguin to squeeze in.
0:01:16 > 0:01:19You'd literally have to get like that down the side to get into the bed!
0:01:21 > 0:01:24And we head to the valleys of Wales to the town of Abertillery,
0:01:24 > 0:01:27where this terrace had me purring.
0:01:27 > 0:01:30This house doesn't have to do much more to impress me.
0:01:32 > 0:01:35All these properties have been sold at auction.
0:01:35 > 0:01:37We will find out who bought them and how much they paid for them,
0:01:37 > 0:01:40- when they went under the hammer. - Sold.
0:01:42 > 0:01:45MUSIC: Bad Weather by Poco
0:01:55 > 0:01:58I'm in the North East of England, in County Durham,
0:01:58 > 0:02:00and the small village of Burnhope.
0:02:01 > 0:02:04Well, the weather's closed in a bit, but the property
0:02:04 > 0:02:08I'm here to see, if I can see it through the mist, is this.
0:02:08 > 0:02:10It is a semi-detached bungalow, three bedrooms.
0:02:10 > 0:02:15Had a guide price of £39,950+.
0:02:15 > 0:02:17Let's go inside.
0:02:19 > 0:02:22So, what have we got?
0:02:22 > 0:02:25Well, through the front door, a nice storage cupboard there,
0:02:25 > 0:02:28always quite useful to have that kind of thing.
0:02:35 > 0:02:39OK, right. Well, you'd obviously want to sort that door out at some point!
0:02:39 > 0:02:43- Bedroom there is a half decent size. - HE LAUGHS
0:02:43 > 0:02:47It's always the small things, isn't it? A rear bedroom there.
0:02:47 > 0:02:50More storage units. I wonder if the doors close on those.
0:02:50 > 0:02:53And then through into the rear of the property,
0:02:53 > 0:02:57actually, for a bungalow, it's feeling quite kind of spacious, so we like that.
0:02:57 > 0:03:03Patio doors out onto the garden gives this room a nice feeling of light and airiness
0:03:03 > 0:03:05and then onwards to the kitchen.
0:03:07 > 0:03:09But before you get to the kitchen,
0:03:09 > 0:03:12there's this little dining room area. Lots of sort of DIY stuff,
0:03:12 > 0:03:16but then through to the kitchen and this part of the house is actually
0:03:16 > 0:03:21a more recent extension and, wow, does it give a lot of extra space.
0:03:21 > 0:03:23For a start, you have this huge kitchen area,
0:03:23 > 0:03:27which dated though the units are, and probably need to replace those,
0:03:27 > 0:03:29it's a really nice size.
0:03:29 > 0:03:32And then onwards to basically a utility area,
0:03:32 > 0:03:35really giving the bungalow lots and lots of extra space.
0:03:35 > 0:03:39And in general, layout, well, surprising.
0:03:39 > 0:03:43Does it work? Yes, no, not sure.
0:03:43 > 0:03:47I mean, there is space to play with. At the front entrance, apart from
0:03:47 > 0:03:51the two bedrooms you've already seen, to your left off that hallway
0:03:51 > 0:03:55there is another little hallway, allowing access to a third bedroom.
0:03:55 > 0:03:59Now, I'm all for good storage, but really there is a lot
0:03:59 > 0:04:03of wasted space, of cupboards and hallways and doorways.
0:04:04 > 0:04:08And the bathroom next door to the third bedroom is tiny.
0:04:08 > 0:04:12It could flow so much better and I don't know why, but there's
0:04:12 > 0:04:16something about this bathroom that makes me a little bit teary-eyed.
0:04:16 > 0:04:19MUSIC: Dolphins Make Me Cry by Martyn Joseph
0:04:28 > 0:04:31But the house itself is only half the story.
0:04:31 > 0:04:33Come round the back of the bungalow
0:04:33 > 0:04:35and not only can you see the extension,
0:04:35 > 0:04:38but also this absolutely fantastic garden.
0:04:38 > 0:04:41It stretches all the way back to the fence in the distance there.
0:04:41 > 0:04:44There's also a fairly tumble-down garage.
0:04:44 > 0:04:46So, a really nice amenity area.
0:04:46 > 0:04:49Space for possibly another extension here, or a conservatory.
0:04:49 > 0:04:52Either way, really nice additional thing to have.
0:04:52 > 0:04:56And at a guide price of £39,950,
0:04:56 > 0:05:01there's a lot of property and land that went under the hammer.
0:05:01 > 0:05:05We asked a local estate agent for his opinion as to the best way to
0:05:05 > 0:05:08add even more value to this bungalow.
0:05:08 > 0:05:10A potential buyer might look at
0:05:10 > 0:05:13a way of incorporating a kitchen-dining area into the property
0:05:13 > 0:05:15and possibly changing the layout in that way.
0:05:15 > 0:05:17And once the bungalow had been refurbished,
0:05:17 > 0:05:20what would be the prospects of letting it out?
0:05:20 > 0:05:22I think there would be a reasonable rental demand for the property,
0:05:22 > 0:05:24probably expecting to achieve something in the region
0:05:24 > 0:05:27of £400-£425 per calendar month.
0:05:28 > 0:05:31And if the plan was to then sell the property on,
0:05:31 > 0:05:34how much could it achieve on the resale market?
0:05:34 > 0:05:36Once refurbished to a decent standard,
0:05:36 > 0:05:38I would expect this property to achieve a sale price
0:05:38 > 0:05:41somewhere in the region of £90-100,000.
0:05:41 > 0:05:44I think a potential owner of the property may consider adding a conservatory,
0:05:44 > 0:05:47coming out of the French doors from the lounge and then through to the rear garden.
0:05:47 > 0:05:50Also the garage is in a poor state of repair,
0:05:50 > 0:05:54so I think that would need to be replaced. Once these improvements had been made,
0:05:54 > 0:05:57I would consider putting the property
0:05:57 > 0:06:00on the market for a price in the region of £110-115,000.
0:06:00 > 0:06:05Well, for a guide price of £39,950+,
0:06:05 > 0:06:09there was a lot of property on offer here.
0:06:09 > 0:06:11Let's see who spotted it when it went under the hammer.
0:06:11 > 0:06:15A price guide of 39,950. Can I ask for 40,000 to start?
0:06:15 > 0:06:18No bid. 35 bid.
0:06:18 > 0:06:2237 anywhere else? 37 standing.
0:06:22 > 0:06:25I'll take 39. 39. 41.
0:06:25 > 0:06:2841 bid. 43?
0:06:28 > 0:06:30There was a lot of interest in the room,
0:06:30 > 0:06:34and we rejoin the auction at £58,000.
0:06:34 > 0:06:4058? 58.5? 58.5 bid. 59?
0:06:40 > 0:06:4659 bid. 60.5 bid. 61? 61 bid. 61.5?
0:06:46 > 0:06:5062? 62.5? 63?
0:06:50 > 0:06:5763.5? 64? 64.5? 65?
0:06:57 > 0:07:0365.5? 66? Gentleman sitting down at 65,500.
0:07:03 > 0:07:0566? No?
0:07:05 > 0:07:08Gentleman sitting down at 65,500.
0:07:08 > 0:07:10This is your last chance on 66.
0:07:10 > 0:07:13I am selling to the gentleman in the fourth row at 65.5.
0:07:13 > 0:07:19I am selling it once at 65.5, I am selling at a second time at 65,500.
0:07:19 > 0:07:21Sold to the gentleman sitting down.
0:07:21 > 0:07:26And the successful bidder paying £65,500 was Graham,
0:07:26 > 0:07:29who was at the auction with his wife Karen.
0:07:33 > 0:07:37They have been married for 29 years and were teenage sweethearts.
0:07:37 > 0:07:40Karen works as a manager in a local business.
0:07:40 > 0:07:44Graham's a self-employed bricklayer who comes from a long,
0:07:44 > 0:07:48illustrious line. His father and grandfather were also bricklayers.
0:07:48 > 0:07:53A handy background to have when it comes to property development.
0:07:53 > 0:07:58I met them both back at the bungalow to find out their plans.
0:07:58 > 0:08:00Karen, Graham, great to meet you both. Congratulations.
0:08:00 > 0:08:03Tell me why you wanted to buy this place.
0:08:03 > 0:08:05We want to sell our previous house
0:08:05 > 0:08:08and we need somewhere to live to take all our junk.
0:08:08 > 0:08:10- Until we do that one up.- OK.
0:08:10 > 0:08:12And then eventually, after a couple of years,
0:08:12 > 0:08:15we may well rent this out and move on. But we're going to live here.
0:08:15 > 0:08:19Oh, great. And, what's prompted the move?
0:08:19 > 0:08:21We need to move on, because our current house has got four bedrooms
0:08:21 > 0:08:24and our son has moved out, so there are only two of us
0:08:24 > 0:08:26rattling around in there, and it's too large.
0:08:26 > 0:08:29So this is actually a bit of a downsize, albeit a decent sized house.
0:08:29 > 0:08:32And why did you choose this particular house, then, out of the ones that you could have gone for?
0:08:32 > 0:08:35It's got a big garden. That is a big plus to us.
0:08:35 > 0:08:38We need to put a garage up, in order to store all the various bits of junk
0:08:38 > 0:08:40that we have accumulated over the years.
0:08:40 > 0:08:44As I'm a builder, there's lots to go in it, loads of household things and other stuff.
0:08:44 > 0:08:47What about inside? What do you think of that?
0:08:47 > 0:08:51It's nice the way it is, but to suit what we want for us to live in here,
0:08:51 > 0:08:55there's things we'd like to do, and I think they are doable.
0:08:55 > 0:08:57Tell me what you're going to do to it, then.
0:08:57 > 0:09:02Well, as you come in the front door, there's a passage there,
0:09:02 > 0:09:06so we'll extend one of the bedrooms out into the passage,
0:09:06 > 0:09:11we'll just take that corner without losing the passage there,
0:09:11 > 0:09:14so that's extended this living room a small bit.
0:09:14 > 0:09:17And remove the passage from in front of the bathroom.
0:09:17 > 0:09:20We'll have a bigger bathroom then and we'll be able to put a bath
0:09:20 > 0:09:22in there as well, which'll be an advantage.
0:09:22 > 0:09:25Graham and Karen have sussed the real issues with the house
0:09:25 > 0:09:27and its wasted space.
0:09:27 > 0:09:31By getting rid of the front hallway and entrance, they can steal
0:09:31 > 0:09:34the whole space for the bedroom, living room and the bathroom.
0:09:34 > 0:09:38Much better. And they have some other ambitious plans.
0:09:38 > 0:09:42Take this ceiling out, because we're going to make it a vaulted ceiling,
0:09:42 > 0:09:44- so that the ceiling goes up to the loft.- Oh, wow.
0:09:44 > 0:09:46This chimney needs to be removed and rebuilt
0:09:46 > 0:09:47because, outside, it's falling apart.
0:09:47 > 0:09:49And you can do a lot of that yourself.
0:09:49 > 0:09:52Physically capable of doing it all myself and I know how to do it,
0:09:52 > 0:09:56but unfortunately, I'm going to be under surgery shortly
0:09:56 > 0:09:58- so I'll be out for about three months.- Surgery on what?
0:09:58 > 0:10:01Just a hernia. But it means that I can't physically pull a chimney down,
0:10:01 > 0:10:04so I need to get employees and people I know in to do some of the stuff.
0:10:04 > 0:10:08I do employ one bricklayer, so a rainy day comes along,
0:10:08 > 0:10:10that we have today, he can be doing something,
0:10:10 > 0:10:13rather than doing nothing and paying the man anyway.
0:10:13 > 0:10:17Graham intends to remove the wall between the dining room and kitchen
0:10:17 > 0:10:20to really open up the bungalow and the couple plan to add
0:10:20 > 0:10:24a conservatory to make the most of the view out on to the garden.
0:10:24 > 0:10:27And, Karen, are you going to be involved on a day-to-day basis?
0:10:27 > 0:10:31- Yes, I'm painter-decorator, labour and gardener.- Oh, well done.
0:10:31 > 0:10:34So what are you going to do outside? You keep talking about the garden.
0:10:34 > 0:10:37It seems like the garden was one of the main reasons you bought the house.
0:10:37 > 0:10:39We've got three dogs, so they will love it.
0:10:39 > 0:10:43- What kind of dogs have you got? - We've got Labradors.- Oh, great.
0:10:43 > 0:10:45But the lawn isn't going to stay that large.
0:10:45 > 0:10:49We are going to reduce that, have vegetables in there.
0:10:49 > 0:10:53- You grow your own, do you?- Yes. - What the dogs don't eat, we get!
0:10:53 > 0:10:57- Your dogs eat vegetables?! - Roast potatoes, apples...beetroot.
0:10:57 > 0:11:00They haven't touched the rhubarb, but most everything, yes.
0:11:00 > 0:11:05MUSIC: Bad Dog No Biscuit by Daron Norwood
0:11:05 > 0:11:09Well, vegetable growing for dogs, I think that's a first for me.
0:11:09 > 0:11:11But, make no BONES about it,
0:11:11 > 0:11:14there's a fair bit of work to be tackled here.
0:11:15 > 0:11:18Fortunately, they have decided to take their time,
0:11:18 > 0:11:23with the bulk of the work taking around a year and a £25,000 budget.
0:11:25 > 0:11:27What's next on the agenda,
0:11:27 > 0:11:31then, a year of getting this place sorted and then move in?
0:11:31 > 0:11:32That is the plan.
0:11:32 > 0:11:36Yes, do this one first then return to the one that we're doing now to complete.
0:11:36 > 0:11:38- Well, congratulations.- Thank you.
0:11:38 > 0:11:42- We look forward to seeing how you get on.- OK, we'll see you later!- Thank you.
0:11:42 > 0:11:46Well, Karen and Graham seem to have found the perfect property for them.
0:11:46 > 0:11:49Close to where they live and with the potential to be
0:11:49 > 0:11:52converted into exactly what they are looking for. But a long timescale.
0:11:52 > 0:11:56I'm sure their dogs can't wait to get their paws
0:11:56 > 0:11:58on those tasty vegetable treats.
0:11:58 > 0:12:02You can find out how they get on later in the show.
0:12:08 > 0:12:13From quaint village to bustling metropolis and London's WC1 now.
0:12:13 > 0:12:16MUSIC: London Calling by The Clash
0:12:22 > 0:12:26Surrounded by tube and rail stations, this area has benefited
0:12:26 > 0:12:29from a huge amount of regeneration, due to the refurbishment
0:12:29 > 0:12:33of St Pancras Station and the addition of its international links.
0:12:35 > 0:12:38And the property we're here to see is less than a mile away.
0:12:38 > 0:12:42This is a busy and noisy road, but unfortunately that is often
0:12:42 > 0:12:46the price you'll pay to be in such a central London spot.
0:12:46 > 0:12:50But what about the price you pay for a first floor, one-bedroom flat?
0:12:50 > 0:12:55Well, the average flat costs around £540,000.
0:12:55 > 0:13:00But this one had a guide price of 310,000.
0:13:00 > 0:13:02I can't wait to have a look around.
0:13:02 > 0:13:08Like many round here, this first floor flat is part of a large Victorian town house conversion.
0:13:13 > 0:13:15The interesting thing with this flat
0:13:15 > 0:13:19is I can look around the whole property by just standing here.
0:13:19 > 0:13:24Bathroom through there, not huge but what you'd expect.
0:13:24 > 0:13:27Kitchen, needs quite a lot of work but average space.
0:13:27 > 0:13:32You've got this lounge here, lots of partition walls involved
0:13:32 > 0:13:36and the bedroom, with a bed that just takes over the whole space.
0:13:36 > 0:13:39I mean, you'd literally have to get like that
0:13:39 > 0:13:40down the side to get into the bed.
0:13:40 > 0:13:45I actually think - yeah - this was probably a studio flat
0:13:45 > 0:13:47in its previous life and somebody's come along
0:13:47 > 0:13:50and they've just put up all these partition walls.
0:13:50 > 0:13:52I actually think it is better,
0:13:52 > 0:13:54but I don't think the use of space is fantastic.
0:13:54 > 0:13:59They might like to take away this wall over here and just open it up
0:13:59 > 0:14:03and see the kitchen, because you've got this fantastic big window here,
0:14:03 > 0:14:07with these lovely shutters, although, very noisy indeed.
0:14:07 > 0:14:11You can hear London right outside there.
0:14:11 > 0:14:15But a great property, but, um, yeah, a bit on the small side.
0:14:17 > 0:14:19Small and noisy, but it's not just
0:14:19 > 0:14:24the noise from the road you might have to concern yourself about here.
0:14:24 > 0:14:26When a property is converted into flats,
0:14:26 > 0:14:29it's more likely it won't have adequate soundproofing,
0:14:29 > 0:14:31which means it could be subject
0:14:31 > 0:14:35to that common problem of noisy neighbours,
0:14:35 > 0:14:37meaning you can hear people next door, you can hear
0:14:37 > 0:14:41the clippy-cloppy of people's shoes walking above, so annoying!
0:14:41 > 0:14:43So, what can you do about this?
0:14:43 > 0:14:47Well, options can include creating a suspended ceiling,
0:14:47 > 0:14:51with insulation above it, or insulating beneath a raised floor.
0:14:51 > 0:14:54As a first port of call, I would recommend consulting
0:14:54 > 0:14:57a professional soundproofer, who can advise you
0:14:57 > 0:15:00on the most effective course of action to take.
0:15:00 > 0:15:03This is certainly a cost you should factor into your renovation,
0:15:03 > 0:15:06because I think it'll be well worth it in the long run.
0:15:07 > 0:15:10Since 2003, there have been regulations with regard
0:15:10 > 0:15:14to sound insulation for conversions, so it's always worth checking out.
0:15:16 > 0:15:19That possible issue aside, all looking good so far.
0:15:19 > 0:15:23However, there is something that would affect selling this flat on,
0:15:23 > 0:15:25which I haven't told you about yet.
0:15:25 > 0:15:28Its lease was originally 99 years,
0:15:28 > 0:15:31but that was back in September 1982,
0:15:31 > 0:15:36which means it now only has 67 years remaining.
0:15:36 > 0:15:38Mm, that is really bad news,
0:15:38 > 0:15:41as it would immediately knock at least 10% off
0:15:41 > 0:15:42the end value of the flat,
0:15:42 > 0:15:45and as mortgage lenders will be more reluctant to lend,
0:15:45 > 0:15:48I think it would also limit the buying market
0:15:48 > 0:15:51and just make it harder to sell.
0:15:51 > 0:15:54You need to speak to the freeholders to discuss the extension,
0:15:54 > 0:15:58which can be time consuming and costly.
0:15:58 > 0:16:01Something else you might want to raise is the communal areas,
0:16:01 > 0:16:03which really are a bit dated.
0:16:03 > 0:16:04It would be worth finding out
0:16:04 > 0:16:08if there were any improvements planned here.
0:16:08 > 0:16:11So, with a guide price of £310,000,
0:16:11 > 0:16:14we invited along a local property expert
0:16:14 > 0:16:16to see what they thought of the flat.
0:16:17 > 0:16:20The kitchen and bathroom could be improved.
0:16:20 > 0:16:22Having a very glamorous and nice bathroom,
0:16:22 > 0:16:26having an attractive bathroom adds to the capital value.
0:16:26 > 0:16:30A quality kitchen, especially in the size and space of the property,
0:16:30 > 0:16:32would add value.
0:16:32 > 0:16:35So we're both agreed - this property has potential.
0:16:35 > 0:16:38But just how much could this flat be worth?
0:16:38 > 0:16:41With an extended lease and a fully renovated property,
0:16:41 > 0:16:44you would be able to sell it for £400,000.
0:16:44 > 0:16:47So there's certainly room for profit there,
0:16:47 > 0:16:49but what if it was on the rental market?
0:16:49 > 0:16:54The estimated rental value of the property would be £1,650 per month.
0:16:56 > 0:16:57So it might be a bit small,
0:16:57 > 0:17:01but, on face value, this flat is in reasonable condition.
0:17:01 > 0:17:06Don't forget it's in a convenient location - WC1.
0:17:06 > 0:17:09But dig a little deeper, and it doesn't quite come up
0:17:09 > 0:17:11smelling of roses due to that short lease.
0:17:11 > 0:17:14I hope whoever bought this did their homework
0:17:14 > 0:17:15and knew what they were taking on.
0:17:15 > 0:17:18Let's find out who that was when we went to auction.
0:17:20 > 0:17:22So, lot 56.
0:17:22 > 0:17:27First floor flat. Shall I kick off on this...300?
0:17:27 > 0:17:29Work up from 300. 300?
0:17:29 > 0:17:31305?
0:17:31 > 0:17:34Sorry, 305. 310?
0:17:34 > 0:17:36315? 320?
0:17:36 > 0:17:38325?
0:17:39 > 0:17:40330?
0:17:42 > 0:17:43335?
0:17:44 > 0:17:45340?
0:17:47 > 0:17:50New spot, 345. Well done.
0:17:50 > 0:17:52350?
0:17:52 > 0:17:54351?
0:17:54 > 0:17:56352?
0:17:58 > 0:18:00353?
0:18:01 > 0:18:04352. First time.
0:18:04 > 0:18:06Second time.
0:18:06 > 0:18:08Third and last time. If you're all done...
0:18:09 > 0:18:10Sold, 352.
0:18:12 > 0:18:17Getting the flat for £352,000 was developer and architect Mario,
0:18:17 > 0:18:20who came to London in the '90s from Cyprus
0:18:20 > 0:18:24with a few properties already in his rental portfolio.
0:18:24 > 0:18:25He's continued to add to it here,
0:18:25 > 0:18:29but this is his first time developing a property in London.
0:18:29 > 0:18:33He's also appeared on Greek TV to talk about property.
0:18:33 > 0:18:35I can't wait to find out what he's got planned.
0:18:37 > 0:18:39- Mario, congratulations.- Thank you.
0:18:39 > 0:18:43This is a very compact, bijou, small, comfortable property,
0:18:43 > 0:18:44but it is in a good location.
0:18:44 > 0:18:48It is in a good location. We have many offices nearby.
0:18:48 > 0:18:51That is the mean reason why I decided
0:18:51 > 0:18:53that the area was very interesting for me.
0:18:53 > 0:18:55You've obviously walked into here with an architect's eyes.
0:18:55 > 0:18:58- Oh, absolutely.- How would you like to change this property?
0:18:58 > 0:19:00Does it need changing at all?
0:19:00 > 0:19:03This particular flat could have been just painted.
0:19:03 > 0:19:07As it is, just a fresh coat of paint and just some touches here
0:19:07 > 0:19:10and there, then that's it - you could sell it.
0:19:10 > 0:19:12No, I don't want to do that. I want to enjoy myself.
0:19:12 > 0:19:13I'm an architect first and foremost,
0:19:13 > 0:19:18so I want to play with this toy, if you like.
0:19:18 > 0:19:20Luckily it's not a very big toy to play with.
0:19:20 > 0:19:24- A few little minor adjustments could make all the difference.- They could.
0:19:24 > 0:19:26I decided that instead of doing that,
0:19:26 > 0:19:30I'm going to go a step further and change everything.
0:19:30 > 0:19:32So the wall behind us will go,
0:19:32 > 0:19:36the wall on the right will also be moved.
0:19:36 > 0:19:38We're going to install a number of things.
0:19:38 > 0:19:41We're going to have ceilings everywhere, change all the floors.
0:19:41 > 0:19:44Mario has big plans for a little place,
0:19:44 > 0:19:46including a new kitchen and bathroom.
0:19:46 > 0:19:49He aims to make it hi-spec.
0:19:49 > 0:19:51Something on top of his priority list
0:19:51 > 0:19:53is tackling that tiny bedroom.
0:19:53 > 0:19:56OK, so you are going to move this wall back so you can have...
0:19:56 > 0:19:59Only about 15cm, half a foot...
0:19:59 > 0:20:01so that we fit a bed.
0:20:01 > 0:20:02But because of the size of the room,
0:20:02 > 0:20:06then we're going to have to install his and hers doors.
0:20:06 > 0:20:08So you're going to have two separate doorways
0:20:08 > 0:20:11- within this one section of wall? - That's right.
0:20:11 > 0:20:14- You're going to turn the bed around. - That's right, yes.
0:20:14 > 0:20:16Whoever goes in that way gets into that side of the bed,
0:20:16 > 0:20:18whoever goes in that way gets in that side of the bed.
0:20:18 > 0:20:20If you didn't put two doorways in,
0:20:20 > 0:20:22- they'd have to climb over the bed to get out.- Yes.
0:20:22 > 0:20:23Amazing.
0:20:23 > 0:20:25- THEY LAUGH - I love that.
0:20:25 > 0:20:27OK, what about the kitchen wall?
0:20:27 > 0:20:29The whole of the kitchen wall goes
0:20:29 > 0:20:34and we're going to place the dining table with a lower ceiling on top,
0:20:34 > 0:20:40with a specialised spotlights, LED lights for energy saving
0:20:40 > 0:20:41and everything else.
0:20:41 > 0:20:43Windows. It's very noisy out there,
0:20:43 > 0:20:45I can hear the traffic hurtling past.
0:20:45 > 0:20:47Are you going to change the window?
0:20:47 > 0:20:49If we wanted to replace the whole thing,
0:20:49 > 0:20:52it would be a very difficult and expensive exercise.
0:20:52 > 0:20:55It's much more economical for us to install a second layer -
0:20:55 > 0:20:57value for money, it's much better.
0:20:57 > 0:21:01After all that, everything you're going to do to make this flat
0:21:01 > 0:21:05stand out from the rest, what's the budget?
0:21:05 > 0:21:09We're going to spend 45, I'm hoping, on this one.
0:21:09 > 0:21:10I'm flinching, I'm flinching.
0:21:10 > 0:21:13£45,000 on such a small space!
0:21:13 > 0:21:16- Yes, indeed.- Wow!
0:21:16 > 0:21:18That's a lot of work and a lot of money.
0:21:18 > 0:21:23Mario's given himself a timescale of only six weeks.
0:21:23 > 0:21:25Are you going to sell this or let it out?
0:21:25 > 0:21:26Immediately sell it.
0:21:26 > 0:21:30How much do you think you might want to sell this flat on for? Go on.
0:21:30 > 0:21:33Tell me how much you think you could get for a property like this,
0:21:33 > 0:21:34considering the market at the moment.
0:21:34 > 0:21:36- Around 500,000.- Really?- Mm.
0:21:36 > 0:21:38So you're really pleased with the price
0:21:38 > 0:21:40- that you picked this up at auction for?- Yes.
0:21:40 > 0:21:42A bit of a downside with this property -
0:21:42 > 0:21:43it doesn't have a long lease.
0:21:43 > 0:21:45That's probably why this went to auction in the first place.
0:21:45 > 0:21:48- Are you going to renew the lease? - No, I'm not.
0:21:48 > 0:21:50So you don't think this flat would be more desirable to
0:21:50 > 0:21:52sell on with a longer lease?
0:21:52 > 0:21:53Oh, I definitely agree with you.
0:21:53 > 0:21:55I definitely think that the longer the lease
0:21:55 > 0:21:57the more appealing to the people it would be.
0:21:57 > 0:22:00But, at the same time, having calculated the figures,
0:22:00 > 0:22:05I'm thinking that we will have enough interest even with the shorter lease.
0:22:05 > 0:22:07So you don't want to spend the money on that.
0:22:07 > 0:22:09I think the money could be spent elsewhere.
0:22:09 > 0:22:11OK, that's an interesting point.
0:22:11 > 0:22:13Mario, it's been such a pleasure meeting you.
0:22:13 > 0:22:17I am really excited to see what this flat looks like.
0:22:17 > 0:22:19The end result.
0:22:19 > 0:22:22- It's been fabulous meeting you. - Come back in six weeks.- Good luck.
0:22:22 > 0:22:24Thanks.
0:22:24 > 0:22:28Well, I am sure that Mario will make this flat look spectacular.
0:22:28 > 0:22:30But if he doesn't extend that lease,
0:22:30 > 0:22:33I can't help but think the end value will always be limited
0:22:33 > 0:22:35when he comes to sell.
0:22:35 > 0:22:39But I'll tell you what - I am so looking forward to seeing how
0:22:39 > 0:22:44Mario's Mediterranean magic just transforms this little property.
0:22:44 > 0:22:48Join me later on in the programme and you can see for yourselves.
0:22:50 > 0:22:52Still to come, in Abertillery, Wales,
0:22:52 > 0:22:55this damp terrace is falling to bits.
0:23:01 > 0:23:05Whilst in central London, it's been hard hats all the way.
0:23:05 > 0:23:08We knocked down every single wall, without any exception.
0:23:12 > 0:23:17We return now to the North East of England and what was a very damp
0:23:17 > 0:23:20and drizzly village of Burnhope in County Durham,
0:23:20 > 0:23:25where the clouds were gathering over this rather shabby and tired
0:23:25 > 0:23:30three-bed semi-detached bungalow, which was bought on auction day
0:23:30 > 0:23:34for £65,500 by local couple Graeme and Karen,
0:23:34 > 0:23:37who were planning on making the bungalow their home
0:23:37 > 0:23:40after downsizing from their four-bedroom family house.
0:23:42 > 0:23:44They had plenty of work ahead of them,
0:23:44 > 0:23:46tackling a space-wasting layout.
0:23:46 > 0:23:49They were also looking forward to introducing their three
0:23:49 > 0:23:53Labradors to the bungalow's huge garden.
0:23:53 > 0:23:55So what are you going to do outside? It seems like the garden
0:23:55 > 0:23:57was one of the main reasons you bought the house.
0:23:57 > 0:23:59The lawn isn't going to stay that large.
0:23:59 > 0:24:03We're going to reduce that, have vegetables in there.
0:24:03 > 0:24:07- You grow your own, do you?- Yeah. - What the dogs don't eat, we get.
0:24:07 > 0:24:10- Your dogs eat vegetables?- They do. - Labradors that eat vegetables?
0:24:10 > 0:24:12Labradors will eat anything.
0:24:12 > 0:24:15Potatoes, apples...beetroot.
0:24:15 > 0:24:17Haven't touched the rhubarb.
0:24:18 > 0:24:21They had a 25 grand budget in mind
0:24:21 > 0:24:25and thought it would take a year to do at least the bulk of the work.
0:24:27 > 0:24:29Two years later, we returned.
0:24:39 > 0:24:41Wow!
0:24:41 > 0:24:43Well, I'd say this was definitely worth the wait.
0:24:51 > 0:24:55All the waste of space this bungalow suffered from
0:24:55 > 0:24:57has been cleverly reclaimed.
0:24:57 > 0:24:58The old front door has gone,
0:24:58 > 0:25:02and this space has been used to create a bigger front bedroom.
0:25:06 > 0:25:08The way in is now at the back,
0:25:08 > 0:25:11through what was the old utility area,
0:25:11 > 0:25:13and now leads to a shower.
0:25:13 > 0:25:16A shower at the back door? Bit odd.
0:25:16 > 0:25:20That's until you discover it's a rather clever shower
0:25:20 > 0:25:23for their three dogs - for those wet and muddy winter months.
0:25:23 > 0:25:25Brilliant!
0:25:27 > 0:25:28In you go.
0:25:28 > 0:25:31I'm just so looking forward to using that for the winter
0:25:31 > 0:25:33when the dogs are filthy.
0:25:33 > 0:25:36Around the back, the sun is certainly shining
0:25:36 > 0:25:39on this light and airy bungalow.
0:25:39 > 0:25:41The conservatory is a lovely addition.
0:25:45 > 0:25:47There's a very handy double garage,
0:25:47 > 0:25:50and then on to that all-important garden
0:25:50 > 0:25:52that's now dog and vegetable friendly.
0:25:54 > 0:25:57I think we will spend most of our time in the conservatory.
0:25:57 > 0:25:59It's such a lovely, bright room.
0:25:59 > 0:26:04But we moved the patio door that was straight out to the garden.
0:26:04 > 0:26:06We've moved that towards the middle of the room
0:26:06 > 0:26:09so that it looked better putting the conservatory on.
0:26:09 > 0:26:13Then you've got a better view from the living room to the conservatory.
0:26:13 > 0:26:18They used the hallway space to create a huge bathroom. Terrific.
0:26:22 > 0:26:26The two remaining bedrooms have had chimney breasts removed,
0:26:26 > 0:26:28increasing their size.
0:26:28 > 0:26:33Along with that and re-skimmed walls and a clean paint job,
0:26:33 > 0:26:34they're looking far better.
0:26:36 > 0:26:38I'm really impressed with the character
0:26:38 > 0:26:40they've brought to this dated bungalow,
0:26:40 > 0:26:43but it's been a long haul.
0:26:43 > 0:26:46It was delayed by six months due to planning procedure, really.
0:26:46 > 0:26:48There wasn't any problem with planning.
0:26:48 > 0:26:53But it meant, as I was undergoing an operation early on,
0:26:53 > 0:26:55I couldn't physically do much myself.
0:26:55 > 0:26:59I was hoping to use my then employee to start the project.
0:26:59 > 0:27:03Because of the six-month delay, I had to let him go.
0:27:03 > 0:27:05So the project was stopped, so it stopped us for quite a while.
0:27:05 > 0:27:08A knock-on effect, of course, was longer than six months
0:27:08 > 0:27:11cos I had to go back to work and earn some money first.
0:27:11 > 0:27:13The couple were able to get started on the garden,
0:27:13 > 0:27:16and it now looks pretty established.
0:27:16 > 0:27:19It does look like it's being appreciated.
0:27:19 > 0:27:21In the back garden, we changed the shape,
0:27:21 > 0:27:25reduced the amount of lawn - Graeme doesn't like lawn.
0:27:25 > 0:27:28We've changed the back part into a vegetable garden. The dogs love it.
0:27:31 > 0:27:34Yeah, but they don't distinguish between lawn,
0:27:34 > 0:27:36where they're supposed to be,
0:27:36 > 0:27:37and vegetables and flowers.
0:27:37 > 0:27:39They'll just trample over the lot.
0:27:40 > 0:27:44Graeme and Karen have done 98% of the work here,
0:27:44 > 0:27:47which is no mean feat considering the scale of the jobs.
0:27:47 > 0:27:52And, whilst the original time frame of one year is a distant memory,
0:27:52 > 0:27:55how is the original budget of £25,000 doing?
0:27:57 > 0:27:59We haven't yet paid for the underfloor heating
0:27:59 > 0:28:02in the room we're standing in. A friend of mine's done that.
0:28:02 > 0:28:05We're still waiting for the bill, and it's been a long time.
0:28:05 > 0:28:07I don't know what that is, we can guess.
0:28:07 > 0:28:11But spending wise, the receipts we have and what we've paid
0:28:11 > 0:28:12added up so far -
0:28:12 > 0:28:15£28,813, 5 shilling and 8p.
0:28:15 > 0:28:18- SHE LAUGHS - Approximately.
0:28:18 > 0:28:20OK. So that would make a total spend,
0:28:20 > 0:28:23including the original purchase price of...
0:28:23 > 0:28:28£94,313, 5 shillings and 8p.
0:28:28 > 0:28:31(Although, I think we can probably round it up to 95,000.)
0:28:32 > 0:28:35It's made a great home for their three Labradors -
0:28:35 > 0:28:38Dee, Tay and Severn - but what will their improvements mean in,
0:28:38 > 0:28:41as Graeme would say, pounds shillings and pence?
0:28:45 > 0:28:47We asked two local estate agents for their opinions,
0:28:47 > 0:28:51starting with the agent who saw it originally.
0:28:51 > 0:28:53I'm incredibly impressed with this property.
0:28:53 > 0:28:55It's been a fantastic transformation.
0:28:55 > 0:28:57I saw the property when it was sold at auction.
0:28:57 > 0:29:00It's a completely different property now.
0:29:00 > 0:29:05It's spacious, it's light, it's been modernised throughout.
0:29:05 > 0:29:07It's, I think, a really good proposition.
0:29:08 > 0:29:11I think the blend of modern conveniences with character
0:29:11 > 0:29:14is the way forward, and I think that having things like double glazing,
0:29:14 > 0:29:16gas central heating, people expect that.
0:29:16 > 0:29:19But what they're looking for is a greater feel in a property.
0:29:19 > 0:29:22So the exposed beams, for instance, in the ceiling,
0:29:22 > 0:29:25the stonework around the fireplace and chimney, the wood burning stove.
0:29:25 > 0:29:27All of that just adds a little something
0:29:27 > 0:29:30that makes this property stand out.
0:29:30 > 0:29:31The experts are impressed,
0:29:31 > 0:29:34and even though Graeme and Karen are moving in,
0:29:34 > 0:29:36this is also an investment for the future,
0:29:36 > 0:29:39so they'll be interested in the rental valuations.
0:29:43 > 0:29:45If the bungalow were to be put on the market to rent,
0:29:45 > 0:29:46in its current condition,
0:29:46 > 0:29:49I would expect it to achieve something in the region
0:29:49 > 0:29:51of £500 to £525 per calendar month.
0:29:51 > 0:29:54Normally, one would expect to get somewhere in the region
0:29:54 > 0:29:57of £550 per calendar month.
0:29:57 > 0:30:00However, looking at this, if it particularly suited somebody,
0:30:00 > 0:30:02then maybe £600 per calendar month would be possible.
0:30:04 > 0:30:08That top rental of £600 would mean a yield of 7.5%,
0:30:08 > 0:30:10a very healthy return indeed.
0:30:12 > 0:30:18- Mmm.- We're going to be rich. - Top banana, brilliant.- Yes.- Yeah.
0:30:18 > 0:30:22Smiles all round, then. But what about those sales valuations?
0:30:24 > 0:30:28I think if this property were to be put on the open market for sale,
0:30:28 > 0:30:31in its new condition, we'd be looking at probably a price
0:30:31 > 0:30:35somewhere in the region of £125,000 to £135,000.
0:30:35 > 0:30:39I think the property has a value of around about £125,000.
0:30:39 > 0:30:43Certainly if I was going to put it on the market today however,
0:30:43 > 0:30:46I would like to speculate, and I think it deserves it.
0:30:46 > 0:30:49So, I would probably speculate maybe as high as £140,000.
0:30:49 > 0:30:52- Excellent, yes.- A little bit more than you said, isn't it?- Yes...
0:30:52 > 0:30:56We were presuming 120, because it's not a highly sought-after area.
0:30:56 > 0:31:00So, if we went with a middle figure of 135,000,
0:31:00 > 0:31:04that would mean a potential pre-tax profit of £40,000
0:31:04 > 0:31:06for this pet lover's pad.
0:31:06 > 0:31:09Certainly not a profit to be sniffed at.
0:31:15 > 0:31:17Nestling in the Welsh valleys,
0:31:17 > 0:31:23just 60 miles north-west of Newport, is the town of Abertillery.
0:31:23 > 0:31:26The name means mouth of the River Tyleri.
0:31:26 > 0:31:29This place is steeped in mining history,
0:31:29 > 0:31:33but the town, like many, has faced a period of decline,
0:31:33 > 0:31:38and in 2003 was found to have the cheapest houses in the UK.
0:31:38 > 0:31:41However, with ongoing regeneration projects,
0:31:41 > 0:31:45things are on the up for the population of around 11,000.
0:31:45 > 0:31:48So, a short walk from the town centre
0:31:48 > 0:31:51and fairly close to a reasonably new supermarket
0:31:51 > 0:31:53is a property I'm here to see.
0:31:53 > 0:31:56This is it, a three-bedroom mid-terrace,
0:31:56 > 0:31:59£20,000 plus was the guide price. Let's take a look.
0:31:59 > 0:32:02MARTIN INHALES DEEPLY
0:32:02 > 0:32:06OK, so what was on offer for the money? Well...
0:32:06 > 0:32:09- MARTIN LAUGHS - You might be quite surprised.
0:32:09 > 0:32:13Because you walk in and immediately, it's not dingy, it's not dark,
0:32:13 > 0:32:16it doesn't look like it's in too bad condition.
0:32:16 > 0:32:18The tiles, you'd want to get rid of them.
0:32:18 > 0:32:21But the basic layout is a little porch area there,
0:32:21 > 0:32:23you've got your front sitting room there,
0:32:23 > 0:32:26and through into this rear living room area,
0:32:26 > 0:32:29gas-fire, definitely needs replacing,
0:32:29 > 0:32:31but it gives a really nice open-plan feel.
0:32:31 > 0:32:34This would be where the kitchen originally was, I think.
0:32:34 > 0:32:37An extension has been built, which now houses the kitchen,
0:32:37 > 0:32:40so, basically you've got this huge great open-plan area,
0:32:40 > 0:32:45which is both surprising and really practical.
0:32:45 > 0:32:49You know, this house doesn't have to do much more to impress me.
0:32:50 > 0:32:53- MARTIN EXHALES DEEPLY - Let's see what it's got.
0:32:54 > 0:33:00Can this property really be so good at that £20,000 guide price?
0:33:00 > 0:33:01There has to be a catch.
0:33:01 > 0:33:05I'm a bit nervous about what might lurk upstairs.
0:33:05 > 0:33:06Fingers crossed.
0:33:06 > 0:33:09# You make me nervous Making me nervous
0:33:11 > 0:33:13# You make me nervous... #
0:33:13 > 0:33:15Surprisingly, up here, a bathroom,
0:33:15 > 0:33:18looks in half decent condition and loo there upstairs,
0:33:18 > 0:33:22you wouldn't have expected that. This isn't ideal, is it?
0:33:22 > 0:33:25Right in the middle here, you've got this hot water cylinder.
0:33:25 > 0:33:27Boiler in the kitchen, get rid of this,
0:33:27 > 0:33:29definitely open up this area here
0:33:29 > 0:33:34and then I would add space onto the bedrooms. Although they're not big,
0:33:34 > 0:33:37um, but they are, two of them are actually quite small.
0:33:37 > 0:33:39But, you know...
0:33:39 > 0:33:42- MARTIN HUFFS - Again, what do you expect?
0:33:42 > 0:33:46Big bedroom at the front and then in here, and...
0:33:46 > 0:33:47right.
0:33:49 > 0:33:53Well, it's good that it's got this window light up there,
0:33:53 > 0:33:57throwing lots of natural daylight into this room, that's good to see.
0:33:57 > 0:34:01But what it illuminates is some serious problems.
0:34:01 > 0:34:04Now, I say serious...
0:34:04 > 0:34:05Obviously major damp issue.
0:34:05 > 0:34:09My guess is something's happened around the chimney stack.
0:34:09 > 0:34:11Maybe the lead flashing has gone,
0:34:11 > 0:34:14a loose tile or some water's been coming in.
0:34:14 > 0:34:17It looks on the face of it that it hasn't
0:34:17 > 0:34:20gone down to the level of the joists, which would be my concern,
0:34:20 > 0:34:22that's going to be expensive to sort out.
0:34:22 > 0:34:25You don't know what problem that's caused in the loft.
0:34:25 > 0:34:28It's going to be, my guess, really easy to fix.
0:34:28 > 0:34:31The problems it's created, maybe not so.
0:34:32 > 0:34:34I just knew there had to be something,
0:34:34 > 0:34:37and they are rather large clues
0:34:37 > 0:34:40to the issues around the possible state of the roof.
0:34:40 > 0:34:43At this guide price, it was never going to be perfect,
0:34:43 > 0:34:46but while this house may not have a ceiling,
0:34:46 > 0:34:48it will have a ceiling price,
0:34:48 > 0:34:52so expensive repairs could eat into any profit margin.
0:34:52 > 0:34:55But really, I'm still not put off.
0:34:56 > 0:34:58Well, out at the back of the property
0:34:58 > 0:35:05and you're straight onto this little lane, which does lead to a fairly...
0:35:05 > 0:35:07odd thing, which is your garden.
0:35:07 > 0:35:09It's actually up those steps there.
0:35:09 > 0:35:12Quite big, though, it goes all the way to the tree in the distance
0:35:12 > 0:35:15and I guess, under the lane there, you could think about building
0:35:15 > 0:35:16some kind of a garage.
0:35:16 > 0:35:19You've already got a little coal store here.
0:35:19 > 0:35:21At the back here, you can see this is one of the properties
0:35:21 > 0:35:25on the street where somebody's obviously built an extension
0:35:25 > 0:35:28over time and that's why it feels so big inside.
0:35:28 > 0:35:32One thing you are going to have to think about doing, though,
0:35:32 > 0:35:34is replacing the windows.
0:35:34 > 0:35:37Yep, I think they're slightly past it.
0:35:37 > 0:35:42It's always nice to have a garden, but up these narrow, steep steps,
0:35:42 > 0:35:44it's pretty impractical.
0:35:44 > 0:35:48It'll need a good clean up and to be made safer,
0:35:48 > 0:35:52if for example a young family were to move in.
0:35:52 > 0:35:55And along with those rotting windows,
0:35:55 > 0:35:59it just adds to the already lengthy to-do list here.
0:35:59 > 0:36:04Still, we mustn't forget that guide price of £20,000.
0:36:04 > 0:36:08We've asked along a local estate agent for his opinion.
0:36:10 > 0:36:12Positives of the property, it's close to the town,
0:36:12 > 0:36:14close to the local bus routes,
0:36:14 > 0:36:17the local train station is about three miles down the road.
0:36:17 > 0:36:21Goes directly into Cardiff. A lot of people use that for work.
0:36:21 > 0:36:23A short journey to Wales's capital
0:36:23 > 0:36:27is a big bonus for this little property.
0:36:27 > 0:36:30And with some local regeneration schemes in the pipeline,
0:36:30 > 0:36:33it could make for a sound investment.
0:36:35 > 0:36:39So what kind of rental yield could be expected here?
0:36:39 > 0:36:41Once the property's renovated,
0:36:41 > 0:36:46I would imagine we could achieve £300-£350 per calendar month.
0:36:46 > 0:36:48Sales wise, once renovated,
0:36:48 > 0:36:51I would imagine this property would fetch anything
0:36:51 > 0:36:53from £40,000-£45,000.
0:36:53 > 0:36:58So what did you expect for a house with a £20,000 plus guide price?
0:36:58 > 0:37:00Something in a lot worse condition than this,
0:37:00 > 0:37:02I wouldn't mind betting.
0:37:02 > 0:37:04Can't go wrong, really, can you?
0:37:04 > 0:37:06Let's see who agreed when it went under the hammer.
0:37:10 > 0:37:13We're are offering a three-bedroom, mid-terraced house,
0:37:13 > 0:37:17well-established area, starting me at 20,000, will you?
0:37:17 > 0:37:2015, somebody, just to get it started.
0:37:20 > 0:37:2415, make it 10, then, if you would. Thank you, I've got you 10.
0:37:24 > 0:37:27At 10. 11 beyond. 12 in front. 12.
0:37:27 > 0:37:3013, 14, 15, 16, 17,
0:37:30 > 0:37:3318, 19, 20,
0:37:33 > 0:37:3521, 22,
0:37:35 > 0:37:3723, 24?
0:37:37 > 0:37:3924, no.
0:37:39 > 0:37:4023, then, right at the back.
0:37:40 > 0:37:42Do they want to on the telephone? Otherwise, 23.
0:37:42 > 0:37:44It's going to be sold.
0:37:44 > 0:37:4624, thank you. New bidder, just in time.
0:37:46 > 0:37:4825 now, back to you?
0:37:48 > 0:37:4924 and a half, I think that is.
0:37:49 > 0:37:5224 and a half. 25, where were you?
0:37:52 > 0:37:5425. 25 and a half now?
0:37:54 > 0:37:5625 and a half, now, will you?
0:37:56 > 0:38:01Otherwise, is £25,000 on my left-hand side for the first time,
0:38:01 > 0:38:06second time, third and last time at £25,000...
0:38:06 > 0:38:08Yours, sir, well done.
0:38:08 > 0:38:11Well, we didn't manage to catch sight of the successful bidder
0:38:11 > 0:38:14in that frantic auction room.
0:38:14 > 0:38:18Matt, whose previous career was in environmental health,
0:38:18 > 0:38:22is now attempting a career change into property development.
0:38:22 > 0:38:27With this £25,000 acquisition his latest project.
0:38:27 > 0:38:30- Matt, good to meet you. - And you.- Congratulations.
0:38:30 > 0:38:33Tell me why you wanted to buy this house.
0:38:33 > 0:38:36I have been wanting to buy a house for quite some time
0:38:36 > 0:38:39for the purpose of selling afterwards.
0:38:39 > 0:38:44I have been a health inspector for 25 years and wanted a career change.
0:38:44 > 0:38:47Health inspector? What kind of health inspector?
0:38:47 > 0:38:51Safety of warehouses, inspecting restaurants and pubs.
0:38:51 > 0:38:53Right. So, why a career change at this point?
0:38:53 > 0:38:57I just wanted to have my own business and work for myself.
0:38:57 > 0:39:00And the local government I worked for was offering
0:39:00 > 0:39:02a voluntary redundancy scheme,
0:39:02 > 0:39:05so I took that and I've used some of that invest into this place.
0:39:05 > 0:39:07Great. So, are you local to here?
0:39:07 > 0:39:10- I'm not. Berkshire, England. - Berkshire? Yeah.
0:39:10 > 0:39:13- How far away is that, then? - It took an hour and a half.
0:39:13 > 0:39:16- Oh, not too bad.- So, not too bad if I go at the right time,
0:39:16 > 0:39:18it's sort of commutable.
0:39:21 > 0:39:25I hope he's factored those travelling expenses into his budget.
0:39:25 > 0:39:30However, Matt does already have a rental property in nearby Newport,
0:39:30 > 0:39:33so presumably he's got that sorted.
0:39:33 > 0:39:36But will this be his first property for resale?
0:39:36 > 0:39:39I got a buzz out of it.
0:39:39 > 0:39:43I'm looking forward to seeing how it will be so different from what is now
0:39:43 > 0:39:44to when it's complete.
0:39:44 > 0:39:47So, tell me what you're going to do to it.
0:39:47 > 0:39:52Well, quite a lot. There is a leak or two in the roof.
0:39:52 > 0:39:54I've had the builders to check that.
0:39:54 > 0:39:58And it looks like some reroofing work will be necessary.
0:39:58 > 0:40:02Maybe bring the chimney down. Once the leaking's stopped,
0:40:02 > 0:40:05I'm going to not do too much to downstairs here,
0:40:05 > 0:40:08keep an open-plan format,
0:40:08 > 0:40:12and upstairs increase the size of the front bedroom,
0:40:12 > 0:40:15by taking out the walk-in wardrobe.
0:40:15 > 0:40:21I'm going to put in a kitchen, bathroom, brand-new, modern,
0:40:21 > 0:40:25- new double-glazing windows throughout.- So what about the garden?
0:40:25 > 0:40:28Cos it's quite interesting the way you access it
0:40:28 > 0:40:32- across that little road.- Yes, so there's a three-tiered garden.
0:40:32 > 0:40:36It's seriously overgrown, so I'll be fencing it off, clearing it.
0:40:36 > 0:40:39I want to make the top tier a car port
0:40:39 > 0:40:41- to get some off-street parking going. - Right.
0:40:43 > 0:40:47And I'll landscape the garden a little bit, turf it where I can.
0:40:47 > 0:40:49- Right, OK. - And put a few trees in or bushes.
0:41:02 > 0:41:04So, some big plans are afoot, then,
0:41:04 > 0:41:07and Matt will be relying on local tradesmen
0:41:07 > 0:41:09to do the majority of the work on the house,
0:41:09 > 0:41:12all of which will have an effect on his budget.
0:41:13 > 0:41:17- The budget's around £13,500. - "Around" £13,500?
0:41:17 > 0:41:20I'm kind of thinking I'll have to spend a bit more than that,
0:41:20 > 0:41:24- to be honest.- OK.- So I can see it getting 16 quite easily.
0:41:24 > 0:41:27OK. And the timescale?
0:41:27 > 0:41:30- Yes, four months.- And that's with you being here how many days a week,
0:41:30 > 0:41:33- do you think?- I would say two to three days week.
0:41:33 > 0:41:36What, in your mind, do you think you might be to sell it on for?
0:41:36 > 0:41:41- I would say anything from 60,000. - Oh, OK.
0:41:41 > 0:41:47Maybe top end 75, depending how well the renovation goes.
0:41:47 > 0:41:51I'm concerned, given the estate agent's early estimations
0:41:51 > 0:41:53of £40,000-£45,000,
0:41:53 > 0:41:57that Matt is overestimating the value he can get back in a resale,
0:41:57 > 0:42:00given what he might have to spend here.
0:42:00 > 0:42:03But no doubt there is one thing he's not going to regret.
0:42:03 > 0:42:06How about the idea of being your own boss, as well?
0:42:06 > 0:42:09Yeah, well, I've got to discipline myself there, as well.
0:42:09 > 0:42:11No procrastination, that sort of thing.
0:42:11 > 0:42:14Yeah, I mean it should be very rewarding,
0:42:14 > 0:42:16once I've got through this project.
0:42:16 > 0:42:17Well, listen, congratulations.
0:42:17 > 0:42:20- Good luck with it. - Thank you very much.
0:42:20 > 0:42:23- Looking forward to seeing how you get on.- Cheers. Thank you.
0:42:23 > 0:42:27So, Matt travelling a long way from his home in Berkshire
0:42:27 > 0:42:31to find a property to add to his new property portfolio.
0:42:31 > 0:42:34Lots of work to be done, damp to sort,
0:42:34 > 0:42:37bit of interior decoration, la, la, la.
0:42:37 > 0:42:40Nothing I don't think he can't cope with. How will he get on?
0:42:40 > 0:42:42You can find out later in the show.
0:42:46 > 0:42:49Well, things always take longer than you think.
0:42:49 > 0:42:52When you're doing up property, there are always unexpected delays.
0:42:52 > 0:42:56Have our buyers hit their deadlines and their budgets? Let's find out.
0:43:04 > 0:43:07First up, it's WC1, in the heart of London,
0:43:07 > 0:43:10where property prices can make your eyes water.
0:43:10 > 0:43:13Earlier, we viewed a one-bedroom first-floor flat
0:43:13 > 0:43:15in this mid-terrace building.
0:43:18 > 0:43:21The interesting thing with this flat is
0:43:21 > 0:43:25I can look round the whole property by just standing here.
0:43:25 > 0:43:28Don't blink or you'd miss it.
0:43:28 > 0:43:32Yes, it was tiny and other senses were being assaulted.
0:43:32 > 0:43:33Very noisy indeed.
0:43:33 > 0:43:36You can hear London right outside there.
0:43:36 > 0:43:39So, small and noisy.
0:43:39 > 0:43:41Who will this property appeal to?
0:43:41 > 0:43:46Step up, Mario, an architect and owner of properties here and abroad.
0:43:46 > 0:43:52Splurging 352,000 at auction on bijou flat didn't faze him.
0:43:52 > 0:43:55This was his first development project in this country
0:43:55 > 0:43:57and he had a plan.
0:43:57 > 0:44:00This particular flat could have been just painted.
0:44:00 > 0:44:04As it is, just a fresh coat of paint and just some touches here
0:44:04 > 0:44:07and there and that's it, you could sell it. No, I don't want to do that.
0:44:07 > 0:44:10I want to enjoy myself. I'm an architect first and foremost.
0:44:10 > 0:44:15So I want to play with this toy, if you like.
0:44:15 > 0:44:18Well, this toy was certainly going to be dressed up.
0:44:18 > 0:44:23And Mario had a budget of 45 grand to spend on it in six weeks.
0:44:23 > 0:44:26Three months later, it's time to see this toy unwrapped.
0:44:44 > 0:44:46Just as you'd expect from an architect,
0:44:46 > 0:44:48not only does it look stylish,
0:44:48 > 0:44:52the space has been thought of in a very innovative way.
0:44:52 > 0:44:56We knocked down every single wall, without any exception.
0:44:56 > 0:44:59So we did a fair bit of work in that sense.
0:44:59 > 0:45:02Having knocked down the walls in the space-restricted area,
0:45:02 > 0:45:05what were the challenges facing Mario?
0:45:06 > 0:45:11Some changes in the bathroom, regarding drainage,
0:45:11 > 0:45:15because we've change the positions of the various units.
0:45:15 > 0:45:17Changed completely the seating area,
0:45:17 > 0:45:21which we integrated with the kitchen now.
0:45:21 > 0:45:23And now we have a proper bedroom,
0:45:23 > 0:45:28in the sense that we can actually install a bed in the bedroom.
0:45:28 > 0:45:32Mario's solution for the tiny bedroom was to create two doorways,
0:45:32 > 0:45:35so you could access either side of the bed, clever.
0:45:35 > 0:45:38But it does eat up wall space in the living area.
0:45:38 > 0:45:41I think the kitchen works very nicely,
0:45:41 > 0:45:44the fact that you have the dining in-between the kitchen
0:45:44 > 0:45:45and the sitting area.
0:45:45 > 0:45:48I also like the fact that we've changed the central heating
0:45:48 > 0:45:51and we've put it where the heat loses out, by the windows,
0:45:51 > 0:45:54rather than the middle of the room, which was a total failure,
0:45:54 > 0:45:58but anyway that's what people do sometimes.
0:45:58 > 0:46:00We have built-in wardrobes,
0:46:00 > 0:46:03which we constructed to a special size
0:46:03 > 0:46:07so that it fits the walls wall-to-wall.
0:46:07 > 0:46:09I think we are very happy with that, as well.
0:46:09 > 0:46:13We have dropped the ceiling by seven centimetres.
0:46:13 > 0:46:15And we have installed soundproofing.
0:46:15 > 0:46:18We have also installed soundproofing under the floor
0:46:18 > 0:46:22to be polite to the people underneath.
0:46:22 > 0:46:26For such a small space, it is quite a transformation.
0:46:26 > 0:46:30As an architect, how hands-on was Mario during the renovation?
0:46:30 > 0:46:34I was here every single day, without any exception.
0:46:34 > 0:46:36I had to run and find different materials
0:46:36 > 0:46:39and different products in different shops.
0:46:39 > 0:46:43Obviously, this is all new to me, at the moment.
0:46:43 > 0:46:46Yes, I'm a property developer all my life, but not in London,
0:46:46 > 0:46:48so having to do it in London,
0:46:48 > 0:46:53you need to get to know where the shops are and what do they offer
0:46:53 > 0:46:55and sometimes the same product,
0:46:55 > 0:46:58there's a tremendous difference in price.
0:46:58 > 0:47:03You have to be very careful with whom you use and where you shop.
0:47:03 > 0:47:09So, how has all this affected his original budget of £45,000?
0:47:09 > 0:47:15We've spent about £6,000 or £7,000 below what we originally planned
0:47:15 > 0:47:17and I'm very happy in that sense.
0:47:17 > 0:47:20An underspend?! Well, that is good news.
0:47:20 > 0:47:24That means Mario has in fact spent around £38,000.
0:47:24 > 0:47:27What about that tight six-week timescale?
0:47:27 > 0:47:32We wanted this property to take six weeks to complete.
0:47:32 > 0:47:35Unfortunately, it's taken eight weeks to complete.
0:47:35 > 0:47:37I'm happy.
0:47:38 > 0:47:40It could have been faster,
0:47:40 > 0:47:44but sometimes in life you don't get always what you want.
0:47:44 > 0:47:48One thing I wanted was for Mario to think about that short lease.
0:47:48 > 0:47:50I thought he should extend it
0:47:50 > 0:47:52in order to make the flat easier to sell on.
0:47:52 > 0:47:55But he didn't agree. Has he changed his mind?
0:47:55 > 0:47:57From the very beginning,
0:47:57 > 0:48:00we didn't think that it was necessary to extend the lease,
0:48:00 > 0:48:02because London is a market
0:48:02 > 0:48:06where a lot of people buy properties for cash.
0:48:06 > 0:48:10We're hoping that the lease is not going to be an issue.
0:48:10 > 0:48:14We've discussed this with the agents that are promoting the property
0:48:14 > 0:48:18at the moment and they were happy for us not to extend the lease.
0:48:18 > 0:48:21Well, let's see if it might be an issue.
0:48:21 > 0:48:24We invited two local property agents along to give us their thoughts.
0:48:24 > 0:48:27The owner's judged the refurbishment well.
0:48:27 > 0:48:30I think he's used good design touches.
0:48:30 > 0:48:33However, you can lose money when you refurbish property
0:48:33 > 0:48:35by going over the top
0:48:35 > 0:48:38and I think that the refurbishment here is correct.
0:48:38 > 0:48:42People like a refurbished property with wood floors.
0:48:42 > 0:48:45He has thought about putting in fitted wardrobes
0:48:45 > 0:48:48and a very nice, high-spec kitchen
0:48:48 > 0:48:50which is all going to be very popular.
0:48:50 > 0:48:52It does have disadvantages.
0:48:52 > 0:48:55It's on a main road, you can't change or alter that.
0:48:55 > 0:48:56And, with the sash windows,
0:48:56 > 0:49:00it will be very difficult to provide adequate sound insulation.
0:49:00 > 0:49:04The only slight drawback is that the bedroom is very small,
0:49:04 > 0:49:07so it's only really going to only suit somebody as a pied a terre
0:49:07 > 0:49:09or a first-time property.
0:49:09 > 0:49:11The property has a short lease.
0:49:11 > 0:49:15Unfortunately, it is below 80 years meaning that at the moment
0:49:15 > 0:49:17only a cash buyer can purchase the property,
0:49:17 > 0:49:20as you wouldn't be able to get finance or mortgage on it.
0:49:20 > 0:49:23Mario bought the flat for 352,000
0:49:23 > 0:49:27and his refurbishments cost 38,000
0:49:27 > 0:49:31makes his total spent £390,000.
0:49:31 > 0:49:35So what could the flat sell for as it stands?
0:49:35 > 0:49:38Currently, with the short lease,
0:49:38 > 0:49:40despite the excellent refurbishment
0:49:40 > 0:49:42and the design touches that have been added,
0:49:42 > 0:49:45the property has a ceiling of £400,000.
0:49:45 > 0:49:48Given the lease term,
0:49:48 > 0:49:52this property could achieve in the region of £400,000.
0:49:52 > 0:49:55Extending the lease would greatly affect the value,
0:49:55 > 0:49:58allowing people using finance and a mortgage to buy the property,
0:49:58 > 0:50:03so I would say the value would be increased by about 25,000-35,000,
0:50:03 > 0:50:06so with a top value of about £435,000.
0:50:06 > 0:50:08If the lease was extended,
0:50:08 > 0:50:11I'd expect this property to achieve £440,000.
0:50:11 > 0:50:13You will please allow me to disagree.
0:50:13 > 0:50:16We are selling it for much, much higher than that.
0:50:16 > 0:50:19We're hoping to get £535,000.
0:50:19 > 0:50:22The agent's valuations without the lease would give Mario
0:50:22 > 0:50:25a pre-tax profit of £10,000.
0:50:25 > 0:50:30But if Mario achieves his target of 535,000,
0:50:30 > 0:50:35that would rocket to a profit of £145,000.
0:50:35 > 0:50:37And, well, this is central London -
0:50:37 > 0:50:39if the right customer comes along,
0:50:39 > 0:50:41he might just get it.
0:50:41 > 0:50:45So is Mario planning to brave the London property market again?
0:50:46 > 0:50:50We have another beautiful project that we started five days ago
0:50:50 > 0:50:54and we have knocked the walls down
0:50:54 > 0:50:58and we are just about to start installing the new walls
0:50:58 > 0:50:59and everything else.
0:51:02 > 0:51:05Back now to Abertillery in Wales, where the property is larger
0:51:05 > 0:51:08but the price certainly isn't.
0:51:08 > 0:51:12This three-bed terrace impressed me with its spacious ground floor.
0:51:13 > 0:51:16Basically, you've got this huge great open-plan area
0:51:16 > 0:51:20which is both surprising and really practical.
0:51:20 > 0:51:24The house was bought by Matt, who had given up his career
0:51:24 > 0:51:28in environmental health for one in full-time property development.
0:51:28 > 0:51:30Tell me what you're going to do to it.
0:51:30 > 0:51:33Well, quite a lot.
0:51:33 > 0:51:36There is a leak or two in the roof.
0:51:36 > 0:51:38I've had the builders to check that
0:51:38 > 0:51:42and it looks like some roofing work will be necessary.
0:51:42 > 0:51:45Maybe bring the chimney down, and upstairs,
0:51:45 > 0:51:48increase the size of the front bedroom
0:51:48 > 0:51:51by taking out the walk-in wardrobe.
0:51:51 > 0:51:55I'm going to put in a kitchen, bathroom, brand-new.
0:51:56 > 0:52:00Modern. New double-glazing windows throughout.
0:52:00 > 0:52:05He had a budget of £16,000 and a timescale of four months.
0:52:05 > 0:52:08The plan was to sell it on, but I was worried he was setting
0:52:08 > 0:52:12his sights too high for a market with a definite ceiling price.
0:52:12 > 0:52:16What in your mind do you think you might be able to sell it on for?
0:52:16 > 0:52:21- I would say anything from 60,000.- OK.
0:52:21 > 0:52:25Maybe topping 75, depending how well the renovation goes.
0:52:26 > 0:52:30An ambitious price for the market, but Matt seemed confident.
0:52:32 > 0:52:36This three-bed terrace complete with a three-tier garden
0:52:36 > 0:52:38had its problems, but it also had good potential.
0:52:41 > 0:52:44In fact, we've come back three months later to discover
0:52:44 > 0:52:47that Matt completed the work in only four weeks
0:52:47 > 0:52:49and now has an offer on the house.
0:52:49 > 0:52:52All those renovations in four weeks?
0:52:52 > 0:52:54Well, not quite.
0:52:57 > 0:53:02Cast your eyes upwards and you'll notice some subtle differences.
0:53:04 > 0:53:07I think we need to find out exactly what has been done
0:53:07 > 0:53:09from the man himself.
0:53:10 > 0:53:15Principally, roof work to make the property sound and rainproof,
0:53:15 > 0:53:19so the chimney was taken off
0:53:19 > 0:53:22and roofed over,
0:53:22 > 0:53:26a new flat roof was put it, cos that was shot to pieces,
0:53:26 > 0:53:31and a dormer on the rear elevation roof was removed
0:53:31 > 0:53:34and replaced with a skylight.
0:53:34 > 0:53:37Then there was some plastering done inside,
0:53:37 > 0:53:40so some of the damaged ceilings and walls.
0:53:40 > 0:53:45It's great that Matt dealt with what were big and worrying problems.
0:53:45 > 0:53:49But this property is far from the big plans he had in mind.
0:53:51 > 0:53:55Originally, I had the vision of doing a full renovation,
0:53:55 > 0:54:00so in terms of this property, I would have continued beyond the roof work
0:54:00 > 0:54:04and put in a new kitchen, for example, a modern kitchen,
0:54:04 > 0:54:07bathroom, full double-glazing throughout,
0:54:07 > 0:54:10flooring, paint and dec,
0:54:10 > 0:54:14so, yeah, that would have taken longer and obviously cost more
0:54:14 > 0:54:17and during my time here, I spoke to a number of people,
0:54:17 > 0:54:19including estate agents,
0:54:19 > 0:54:22and was advised that you could put it on the market
0:54:22 > 0:54:24just with some structural improvements
0:54:24 > 0:54:26and there is plenty of demand for houses
0:54:26 > 0:54:28in that condition at that point.
0:54:28 > 0:54:34I looked at the profit margin between now and after a full renovation
0:54:34 > 0:54:37and it wasn't too dissimilar
0:54:37 > 0:54:40and for a quick sale, I thought, "Why not?"
0:54:40 > 0:54:42Listening to advice and altering plans
0:54:42 > 0:54:47is an important part of successful property renovation.
0:54:47 > 0:54:50And in this case, it's made perfect business for Matt
0:54:50 > 0:54:52and his fledgling career.
0:54:53 > 0:54:55Initially, the project was £16,000
0:54:55 > 0:54:59and for that I was looking at full renovation,
0:54:59 > 0:55:01but as it panned out,
0:55:01 > 0:55:05with limited work being done on the place,
0:55:05 > 0:55:08I only in fact spent closer to 5,000,
0:55:08 > 0:55:10so...
0:55:10 > 0:55:14Yeah, it worked out and I didn't have any money constraints as a result,
0:55:14 > 0:55:18but it gives me more money perhaps to put into the next property.
0:55:19 > 0:55:25So that £5,000 added to the £25,000 means he's invested £30,000,
0:55:25 > 0:55:29a far cry from what he was planning to spend.
0:55:31 > 0:55:33We invited along two local property agents
0:55:33 > 0:55:37to see if Matt's change of plan will pay dividends.
0:55:37 > 0:55:38The changes that I've seen
0:55:38 > 0:55:41have actually enhanced the house so much so
0:55:41 > 0:55:44that it now makes it more sellable
0:55:44 > 0:55:46and ready for the open market.
0:55:46 > 0:55:48The layout of the property is typical of houses in this area.
0:55:48 > 0:55:51It's a good-sized family space upstairs with an upstairs bathroom
0:55:51 > 0:55:53and downstairs will suit a lovely family.
0:55:53 > 0:55:56There is a demand for properties like this at the moment,
0:55:56 > 0:56:00because there is a very good market for three-bedroom houses
0:56:00 > 0:56:04in Abertillery and also properties that are vacant,
0:56:04 > 0:56:06so there's no chain involved,
0:56:06 > 0:56:09which also appeals to a first-time buyer, so there's no problems
0:56:09 > 0:56:13for them purchasing and moving in, in a realistic timescale.
0:56:13 > 0:56:16Matt has invested £30,000,
0:56:16 > 0:56:19£11,000 of his original budget remains unspent
0:56:19 > 0:56:22and he already has an offer on the house,
0:56:22 > 0:56:26so is he right to have put it on the market at this stage?
0:56:26 > 0:56:30If the current owner was to put the house on the market,
0:56:30 > 0:56:33I would recommend a sale price of £42,000.
0:56:33 > 0:56:38I'd expect this property to achieve somewhere around £45,000.
0:56:38 > 0:56:40Yeah, they sound about right,
0:56:40 > 0:56:43and they're along the lines of something I had been offered.
0:56:43 > 0:56:46Yeah, I'm happy with that.
0:56:46 > 0:56:49So, Matt's offer is in the same ball park
0:56:49 > 0:56:52as the estimate of £45,000.
0:56:53 > 0:56:57That would mean a possible pre-tax profit of £15,000.
0:56:59 > 0:57:03And making £15,000 in just four weeks is pretty impressive
0:57:03 > 0:57:04if you ask me.
0:57:06 > 0:57:09And it certainly proves that Matt was right to change plans
0:57:09 > 0:57:11and scale things back.
0:57:11 > 0:57:13Not bad for a newbie, Matt.
0:57:17 > 0:57:20So with this successful project under his belt,
0:57:20 > 0:57:23what advice would he give to any other first-time developers?
0:57:24 > 0:57:27Research, research, research, plan, plan, plan,
0:57:27 > 0:57:31and, mmm, go for it.
0:57:31 > 0:57:33But will Matt be going for it again?
0:57:33 > 0:57:36Yes, I would buy another investment property
0:57:36 > 0:57:39and I'm looking as we speak,
0:57:39 > 0:57:43so hoping to get another place later this month.
0:57:46 > 0:57:49Well, that's it for today's show, but join us next time
0:57:49 > 0:57:52when we'll have more stories from Planet Property.
0:57:52 > 0:57:55- We look forward to seeing you then. - Goodbye.- Goodbye.