0:00:02 > 0:00:04Hello. Now, over the years Lucy and I have met
0:00:04 > 0:00:06literally thousands of people who've decided that
0:00:06 > 0:00:09investing in property is what they want to do with their money.
0:00:09 > 0:00:14That's right, and good investing in property starts with buying wisely.
0:00:14 > 0:00:16And one way you might be able to do that
0:00:16 > 0:00:20and get property at a good price is by visiting your local auction.
0:00:44 > 0:00:48Now, people buy properties for all sorts of reasons.
0:00:48 > 0:00:52To provide a rental income, possibly as part of a pension,
0:00:52 > 0:00:54or as somewhere to live.
0:00:54 > 0:00:56So what were the stories behind the properties
0:00:56 > 0:00:58that went to auction today?
0:00:59 > 0:01:01In Newcastle, this two-bed flat
0:01:01 > 0:01:04has a problem that could floor the unwary.
0:01:04 > 0:01:07I think the issue here is something called sulphate attack.
0:01:09 > 0:01:14In Kent, I feel the earth move under my feet. But not in a good way.
0:01:14 > 0:01:18Look at this! The floor is really, really bouncy.
0:01:19 > 0:01:22While in Cumbria, it's the roof that needs the revamp.
0:01:22 > 0:01:25I thought it would be a bit of a nightmare.
0:01:25 > 0:01:28All of these properties have been sold at auction.
0:01:28 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:32when they went under the hammer.
0:01:32 > 0:01:34All done, sir, it's yours.
0:01:38 > 0:01:41Roughly five miles north-east of Newcastle
0:01:41 > 0:01:43is the suburb of Forest Hall.
0:01:43 > 0:01:47In recent years, it's grown, hosting a wide range of local amenities,
0:01:47 > 0:01:49as well as bus and metro services,
0:01:49 > 0:01:51making it a most desirable location
0:01:51 > 0:01:54for those wishing to commute into the city.
0:01:55 > 0:01:58Well, the property I'm here to see is in this block of flats,
0:01:58 > 0:02:00and it is in fact a ground floor flat
0:02:00 > 0:02:03which is often a popular choice.
0:02:03 > 0:02:08£65,000 plus, two bedrooms, let's take a look.
0:02:08 > 0:02:12There's 137 years remaining on the lease, which is good.
0:02:13 > 0:02:15And doesn't it all look neat and tidy?
0:02:17 > 0:02:21Nicely presented communal area, really does bode well.
0:02:21 > 0:02:23So what about the flat itself?
0:02:23 > 0:02:26Well, straight in through the front door,
0:02:26 > 0:02:30and you don't get a sense of being cramped in, which is great.
0:02:30 > 0:02:34Bedroom over that way, living room facing you there. Kitchen there.
0:02:34 > 0:02:37Interesting circles on the floor.
0:02:37 > 0:02:41Or some kind of hole which has been filled in. More of that later.
0:02:41 > 0:02:43But into the lounge.
0:02:43 > 0:02:48And, wow, wow, wow! What a lounge it is.
0:02:48 > 0:02:50Absolutely huge.
0:02:50 > 0:02:55Loads of light coming in from these two big windows.
0:02:55 > 0:02:58And just loads and loads of space.
0:02:58 > 0:03:00It really gives this flat a fantastic feeling.
0:03:00 > 0:03:04I mean, so much so, I'm wondering whether or not you could even
0:03:04 > 0:03:08use part of it to create a third bedroom.
0:03:08 > 0:03:11If you needed the space, it's an option, but actually,
0:03:11 > 0:03:13if you can afford to leave it like it is, do so
0:03:13 > 0:03:17because it gives such a lovely feel to the flat.
0:03:17 > 0:03:19# Baby, I can make you feel good... #
0:03:22 > 0:03:23The flat does make me feel good.
0:03:23 > 0:03:28Inside and outside it looks smart, well-maintained and very sunny.
0:03:28 > 0:03:31Outside, there is the bonus of a garage and inside,
0:03:31 > 0:03:34the proportions, with a spacious living room
0:03:34 > 0:03:39and a decent-sized first bedroom, all add to the positive vibe.
0:03:39 > 0:03:41It's not as big,
0:03:41 > 0:03:44but the kitchen seems to be in pretty decent condition.
0:03:44 > 0:03:48And again, for the size of flat, you know, perfectly good size.
0:03:48 > 0:03:51Down this little corridor, you've got bathroom, which, again,
0:03:51 > 0:03:54surprise surprise, nicely proportioned.
0:03:54 > 0:03:59And then through into the second bedroom. And therein lies a story.
0:04:01 > 0:04:02Sadly...
0:04:03 > 0:04:06..it's a potential horror story.
0:04:06 > 0:04:10It's back to these little circles on the floor.
0:04:10 > 0:04:12They're actually concrete, or rather,
0:04:12 > 0:04:16concrete which has been put in to fill a hole.
0:04:16 > 0:04:18And that hole is actually a borehole
0:04:18 > 0:04:22which has been taken to see what's under the floor.
0:04:22 > 0:04:25And it's probably been sparked by...
0:04:25 > 0:04:29I don't know if you can see this, but I can certainly feel it,
0:04:29 > 0:04:34the fact that the floor is actually rising at that point.
0:04:34 > 0:04:39Now, I think the issue here is something called sulphate attack.
0:04:39 > 0:04:42Which actually is as bad as it sounds.
0:04:42 > 0:04:47Years ago, they used to use basically hard core materials,
0:04:47 > 0:04:51the stuff which goes underneath the floor, to sort of solid it,
0:04:51 > 0:04:54make it what it is, which contained in some cases sulphate.
0:04:54 > 0:04:57Very prevalent in areas where there was lots of mining,
0:04:57 > 0:05:00and they used to use some of the mining waste to do the hard core.
0:05:00 > 0:05:04The problem is, if that gets wet, then it starts to interact.
0:05:04 > 0:05:06The water reacts with the sulphates
0:05:06 > 0:05:08and you get it literally bubbling up.
0:05:08 > 0:05:10Which is what's happening here.
0:05:10 > 0:05:13It can take 10, 20 years before it happens,
0:05:13 > 0:05:15and often it's an indication
0:05:15 > 0:05:18that there is some kind of water penetration somewhere.
0:05:18 > 0:05:19What's so bad about that?
0:05:19 > 0:05:22The first thing is, it's dreadful, it's causing the floor to do that.
0:05:22 > 0:05:25If that happens around the edges, it can even destroy the walls,
0:05:25 > 0:05:28the foundations of the building. It's really, really serious.
0:05:28 > 0:05:30It gets worse, I'm afraid.
0:05:30 > 0:05:35Because number one, it's not covered by insurance under most cases
0:05:35 > 0:05:38because it's classed as a chemical attack, that's bad.
0:05:38 > 0:05:41Number two, by the time you've dug through there,
0:05:41 > 0:05:44you've basically destroyed the damp proofing,
0:05:44 > 0:05:47or damp proof membrane that might be under the floor.
0:05:47 > 0:05:49So you're going to get damp coming through anyway,
0:05:49 > 0:05:51so it's going to compound the problem.
0:05:51 > 0:05:54And thirdly, when it comes to getting a mortgage,
0:05:54 > 0:05:57as soon as a mortgage assessor or a surveyor sees that,
0:05:57 > 0:05:59they're going to say, "No.
0:05:59 > 0:06:03"Can't have a penny. Sorry." Not good.
0:06:03 > 0:06:05# You're a nightmare
0:06:05 > 0:06:08# And you've made it all wrong... #
0:06:08 > 0:06:14I had been feeling good about this flat. But now? Oh, dear.
0:06:14 > 0:06:18Of course, if this is a sulphate attack, then it can be fixed.
0:06:18 > 0:06:21But the floors would need to be dug up, that is going to cost.
0:06:22 > 0:06:26Time to ask a local expert about this property, guided at
0:06:26 > 0:06:31£65,000, who knows a bit about what is going on with that floor.
0:06:33 > 0:06:37It has been uncovered that there are some problems with the floor.
0:06:37 > 0:06:40Therefore, some sulphate tests have been done,
0:06:40 > 0:06:43we are still waiting to find out what the outcome of that is.
0:06:43 > 0:06:45If it doesn't come back positive,
0:06:45 > 0:06:48then there may be some serious cost issues with rectifying the problem.
0:06:49 > 0:06:53So, there is still hope that the test may return all clear.
0:06:53 > 0:06:55If this indeed turns out to be the case,
0:06:55 > 0:07:00how much does he think the flat would be worth on the open market?
0:07:00 > 0:07:03If this property was updated and refurbished throughout,
0:07:03 > 0:07:07then we would expect it to achieve on the market between £85-£90,000.
0:07:07 > 0:07:10- That would be the top price. - And on the rental market?
0:07:10 > 0:07:14The rental market in Forest Hall is very strong, so on that basis
0:07:14 > 0:07:18we would expect this flat to achieve £500 per calendar month.
0:07:19 > 0:07:22Well, on the face of it, a really lovely little flat,
0:07:22 > 0:07:24and you certainly can't complain about the size.
0:07:24 > 0:07:26But once you scratch the surface,
0:07:26 > 0:07:29there's definitely more investigation to be done.
0:07:29 > 0:07:31Especially under that floor.
0:07:31 > 0:07:34Let's see who bought it when it went under the hammer.
0:07:37 > 0:07:40Can I ask for 65? How about 61?
0:07:40 > 0:07:41Thank you, at 61,000.
0:07:41 > 0:07:44Do I have 62 anywhere else? 62 standing.
0:07:44 > 0:07:4763? 63 bid.
0:07:47 > 0:07:4964? 64 bid.
0:07:49 > 0:07:5265? 65? No?
0:07:52 > 0:07:56I'm here in the centre, at 64,000. I'll take 500.
0:07:56 > 0:07:5864.5 bid.
0:07:58 > 0:08:00Take 500. 65. 65 bid.
0:08:00 > 0:08:0465.5? I'm selling it once at 65.
0:08:04 > 0:08:07I'm selling it for the second time at £65,000.
0:08:09 > 0:08:11Sold to the gentleman in the centre at £65,000.
0:08:13 > 0:08:17Getting the property at the guide price of 65,000 was Joe,
0:08:17 > 0:08:21a property manager for a financial services firm.
0:08:23 > 0:08:25Joe's wife Emma is an analyst
0:08:25 > 0:08:28in a commercial team for a paint manufacturer.
0:08:28 > 0:08:30They already have two properties in their rental portfolio
0:08:30 > 0:08:35and she will be looking after this project while on maternity leave.
0:08:35 > 0:08:38They came along with baby Olivia to tell us more.
0:08:38 > 0:08:41- Joe, Emma, good to meet you both. - Hello.- Good to meet you.
0:08:41 > 0:08:42Congratulations.
0:08:42 > 0:08:45- Thank you.- Thanks very much, yeah.
0:08:45 > 0:08:47So, tell me why you wanted to buy the flat.
0:08:47 > 0:08:50We've been looking for an investment property.
0:08:50 > 0:08:52And we were recommended to have a look at it.
0:08:52 > 0:08:57We know the area, we like the area. And it came up at a good price.
0:08:57 > 0:08:58It's a big flat, isn't it?
0:08:58 > 0:09:01You walk through the door and it is, wow, look at this!
0:09:01 > 0:09:02Yeah, there's a lot of flat here.
0:09:02 > 0:09:08I think that's one of the things that really, when we saw it for the price,
0:09:08 > 0:09:12in this area, we just thought, this is a good lot of flat for the money.
0:09:12 > 0:09:15- Definitely.- And so we thought it was worth a punt.
0:09:15 > 0:09:18So you'd been to see it, you liked the feel of the place?
0:09:18 > 0:09:20What was it that impressed, Emma?
0:09:20 > 0:09:21We'd seen it a couple of times.
0:09:21 > 0:09:23Just as soon as you walk in,
0:09:23 > 0:09:26the big hallway with the rooms coming off the side,
0:09:26 > 0:09:28I could imagine myself living here.
0:09:28 > 0:09:31So I could see the attraction for potential tenants.
0:09:31 > 0:09:35Also, there was quite a bit of work already done,
0:09:35 > 0:09:39and then we could also put our own stamp on the kitchen and bathroom.
0:09:39 > 0:09:42- Yeah.- To make it appealing and attractive to buyers.
0:09:42 > 0:09:44So we thought it was a good challenge for us,
0:09:44 > 0:09:46our next property to the portfolio.
0:09:48 > 0:09:52All of this is, of course, how I felt about this flat initially.
0:09:52 > 0:09:55But there is that elephant in the room, the floor.
0:09:55 > 0:09:59But it seems that Joe and Emma are already tackling that head-on.
0:09:59 > 0:10:02- We had that done after the auction. - Right.
0:10:02 > 0:10:08- So we now need to consider some options.- What did you mean?
0:10:08 > 0:10:13Well, because the tests have come back that it is a sulphate attack.
0:10:13 > 0:10:16- It is? Definitely?- Yes.- When did you get the results of that?
0:10:16 > 0:10:18- About an hour ago.- An hour ago?- Yes.
0:10:18 > 0:10:24So you heard an hour ago that something potentially quite bad is going on?
0:10:24 > 0:10:26All the floors will need to be pulled up
0:10:26 > 0:10:31and sort of the film replaced and it could be quite a costly job.
0:10:31 > 0:10:34At this point, you don't know how much it will cost to dig up
0:10:34 > 0:10:38the floors, but it sounds a bit labour-intensive, doesn't it?
0:10:38 > 0:10:40- We've got indicative costs.- Already?
0:10:40 > 0:10:44The surveyor put in his report that it would cost
0:10:44 > 0:10:46- around £20,000-£25,000. - £20,000-£25,000?
0:10:46 > 0:10:51- Remind me how much you paid for the flat?- 65.
0:10:51 > 0:10:54So that's getting on for, well, it is
0:10:54 > 0:10:58- over a third of what you paid for it again.- Yeah, ouch.
0:11:00 > 0:11:02Ouch indeed! However, all is not lost.
0:11:02 > 0:11:04In normal circumstances,
0:11:04 > 0:11:08a buyer could choose to have a prospective purchase survey
0:11:08 > 0:11:11before bidding, but this property was sold as what is
0:11:11 > 0:11:15known at auction as option two, which means that although you
0:11:15 > 0:11:19still pay a non-refundable deposit, you do have the legal right
0:11:19 > 0:11:20to pull out if you'd discover anything
0:11:20 > 0:11:22you don't want to deal with.
0:11:23 > 0:11:27Are you within your period that you can pull out of the purchase?
0:11:27 > 0:11:29Yes, because we haven't completed yet.
0:11:29 > 0:11:33Before we complete, we'll be investigating this further
0:11:33 > 0:11:36with our solicitor and with the lender as well.
0:11:36 > 0:11:42- How do you feel at the moment? - Er...reasonably OK, considering!
0:11:44 > 0:11:46It's disappointing,
0:11:46 > 0:11:50but we've got to find out a bit more about this, because it may be
0:11:50 > 0:11:53that we're not liable to pay for the work
0:11:53 > 0:11:54since we don't own the freehold.
0:11:54 > 0:11:59So it could be that they could sort this out.
0:11:59 > 0:12:02It makes an interesting point, because that's something
0:12:02 > 0:12:05which affects the fabric of the building, doesn't it?
0:12:05 > 0:12:08You would think that this wouldn't be the only flat that might be
0:12:08 > 0:12:10- affected.- You would think that, yes.
0:12:10 > 0:12:16And possibly that this comes under the remit of the roof, exterior,
0:12:16 > 0:12:20windows, flooring, that should be actually paid for by everyone.
0:12:20 > 0:12:23I would expect that's what you pay the maintenance charge
0:12:23 > 0:12:24and service charges for.
0:12:24 > 0:12:26We definitely need to get legal advice on this.
0:12:27 > 0:12:31It's a shame this great flat has this complication, however,
0:12:31 > 0:12:33having had the sulphate test done,
0:12:33 > 0:12:38they at least can make a decision about going ahead or not.
0:12:38 > 0:12:43We plan to rent it, so we need to modernise the property.
0:12:43 > 0:12:46We'll be putting a new kitchen in and a new bathroom,
0:12:46 > 0:12:49because the pink suite is not to everybody's taste!
0:12:49 > 0:12:51We'll also be changing the doors,
0:12:51 > 0:12:54putting some flooring down and general redecoration.
0:12:54 > 0:12:59Setting aside the 20,000-25,000 it would cost to do the floor...
0:12:59 > 0:13:01ALL LAUGH
0:13:01 > 0:13:03Forget about that for a bit!
0:13:04 > 0:13:08What kind of budget to do everything other than the floor?
0:13:08 > 0:13:12As I'm in charge of the project day-to-day, because I'm
0:13:12 > 0:13:15on maternity leave, I've got a spreadsheet with all the costs.
0:13:15 > 0:13:17We are hoping, for the work that I've mentioned,
0:13:17 > 0:13:22- to do it under £9,000.- Great. That's much more manageable.
0:13:22 > 0:13:27- Yes.- I wish you all the best and I hope it turns out all right.
0:13:27 > 0:13:31- We'll come back and find out. - Thank you.- Good luck.
0:13:31 > 0:13:36Well, a bit of a shock for Joe and Emma and considering they only found
0:13:36 > 0:13:39out the news an hour ago, I think they are taking it remarkably well.
0:13:39 > 0:13:45Lots of questions to be asked and decisions to be made.
0:13:45 > 0:13:48You can find out what happens later in the show.
0:13:52 > 0:13:55Well, let's hope there aren't any unpleasant surprises
0:13:55 > 0:13:58at the property I'm going to see next
0:13:58 > 0:14:00here in Swanscombe in Kent.
0:14:00 > 0:14:02Situated between Dartford and Gravesend,
0:14:02 > 0:14:06with good transport links, it's family and commuter friendly.
0:14:07 > 0:14:10The train station is only a 12-minute walk from here.
0:14:10 > 0:14:15There's a park just down the end and as this is a no-through road,
0:14:15 > 0:14:18it's a quiet spot without too much passing traffic.
0:14:18 > 0:14:20Now, the property I am here to see is this.
0:14:20 > 0:14:22It's three bedrooms, it's an end of terrace
0:14:22 > 0:14:26and it had a guide price of 90,000 to 95,000.
0:14:26 > 0:14:29But the front door is round here. Let's have a look.
0:14:35 > 0:14:37Well, for starters, I do not like walking
0:14:37 > 0:14:41straight from the outside into your sitting room area.
0:14:41 > 0:14:45But I think that's the least of my problems. Look at this!
0:14:45 > 0:14:49The floor is really, really bouncy, which is a bit of a worry.
0:14:49 > 0:14:52And you can't really imagine yourself sitting next to
0:14:52 > 0:14:54a lovely roaring fire in here.
0:14:54 > 0:14:58It's quite obvious you really need to start from scratch with this property.
0:14:58 > 0:15:00I think there's honestly been some woodworm, some damp,
0:15:00 > 0:15:05something drastic, because down here there's a huge hole in the floor
0:15:05 > 0:15:08and again it's bouncy, so best tread carefully.
0:15:08 > 0:15:10I'm going to go and investigate.
0:15:10 > 0:15:13MUSIC: Bounce by Calvin Harris
0:15:14 > 0:15:18With a careful step over, I enter a second reception room,
0:15:18 > 0:15:22equally in need of a complete clear out and upgrade.
0:15:22 > 0:15:26Beyond this, lies a small and narrow kitchen that has seen better days
0:15:26 > 0:15:30and beyond that, I'm sorry to say, is a ground-floor bathroom.
0:15:30 > 0:15:34All very disappointing. And on that very theme...
0:15:34 > 0:15:37And Energy Performance Certificate or EPC is
0:15:37 > 0:15:42required for properties when they are built, sold or let.
0:15:42 > 0:15:46Now, it gives a rating from A, the most efficient, to G,
0:15:46 > 0:15:52the least efficient. Guess which category this property falls into.
0:15:52 > 0:15:55Yes, unfortunately, it's G.
0:15:55 > 0:15:58That's bad news and it means at the very least you'll have higher
0:15:58 > 0:15:59fuel bills.
0:15:59 > 0:16:03Luckily, the EPC also provides recommendations of how you can
0:16:03 > 0:16:07improve the efficiency and I would certainly advise reading this
0:16:07 > 0:16:10thoroughly and taking heed of the advice given.
0:16:10 > 0:16:13# Well, I'm cold in my heart... #
0:16:13 > 0:16:15Summoning the energy to get upstairs,
0:16:15 > 0:16:19I'm presented with a good-sized bedroom to the left of the stairs
0:16:19 > 0:16:21and to the right, a decent-sized middle room.
0:16:21 > 0:16:25However, I am sorry to discover the third bedroom does not
0:16:25 > 0:16:26have its own access.
0:16:28 > 0:16:30So if you're familiar with Homes Under The Hammer, you'll have
0:16:30 > 0:16:36seen me harp on about the famous room that leads off a room.
0:16:36 > 0:16:39So here we have this space. Now what can you do with it?
0:16:39 > 0:16:41Could you put a bathroom up here?
0:16:41 > 0:16:44Well, yes, you could, but you would need to create independent
0:16:44 > 0:16:46access from this bedroom here.
0:16:46 > 0:16:50Or I suppose you could think about using this as a dressing room.
0:16:50 > 0:16:53There are lots of things you could do to use this room,
0:16:53 > 0:16:56to not use this room, the choice is yours, really.
0:16:57 > 0:16:59Yes, you need to weigh it all up.
0:16:59 > 0:17:03What you could gain versus what you'd need to spend.
0:17:03 > 0:17:07It's all a bit tired, as is the large back garden.
0:17:08 > 0:17:13But it's the outside space which offers an end to the disappointment of this house.
0:17:13 > 0:17:16Not only is there room to extend and resolve that layout,
0:17:16 > 0:17:18there's something else.
0:17:18 > 0:17:21The parking round here is limited
0:17:21 > 0:17:25and it won't always be easy to find a space on that narrow road
0:17:25 > 0:17:31outside, so that makes any off-road parking very, very desirable indeed.
0:17:31 > 0:17:35Well, guess what? I've got some good news for you. Da-da!
0:17:35 > 0:17:39Here is some and there is right of access running along the back
0:17:39 > 0:17:44of the property here, which leads to this off-road parking at the back.
0:17:44 > 0:17:47Definitely a tick in the box for anyone living here.
0:17:47 > 0:17:50# Pull up to my bumper, baby... #
0:17:50 > 0:17:55Suddenly, the real potential of this property is making itself known.
0:17:55 > 0:17:57Add some imagination to the mix
0:17:57 > 0:18:00and improvements could be made all over this house.
0:18:01 > 0:18:04And round the front - or is it at the side?
0:18:04 > 0:18:07I see another problem that could be resolved.
0:18:07 > 0:18:10As I mentioned earlier, walking straight into your lounge
0:18:10 > 0:18:14from the pavement outside, well, I don't think it's ideal, really.
0:18:14 > 0:18:18Just imagine taking off your muddy old shoes on a wet and rainy day
0:18:18 > 0:18:21and ruining that lovely new carpet. I don't think so.
0:18:21 > 0:18:23Take a look at this house next door.
0:18:23 > 0:18:25You can see how they have solved the problem.
0:18:25 > 0:18:28They've replaced these windows here with a front door
0:18:28 > 0:18:31and created a porch area.
0:18:31 > 0:18:33I think this would improve the layout
0:18:33 > 0:18:36and it's something definitely worth considering.
0:18:37 > 0:18:39After a bit of a rocky start,
0:18:39 > 0:18:43I'm feeling optimistic now about the possibilities here.
0:18:43 > 0:18:45We asked a local agent to come along to give us
0:18:45 > 0:18:47his thoughts about this property.
0:18:47 > 0:18:51How I would extend the property is to widen the kitchen downstairs
0:18:51 > 0:18:55and to make a corridor through to the garden which would give you
0:18:55 > 0:18:57better access to the bathroom and a larger kitchen.
0:18:59 > 0:19:02And what about that ground-floor bathroom?
0:19:02 > 0:19:04If you didn't want to lose the third bedroom,
0:19:04 > 0:19:08you could use the cupboard space over the stairs to create an en-suite,
0:19:08 > 0:19:10precedent has been set in the road to do that,
0:19:10 > 0:19:12and you therefore don't have to lose that third bedroom.
0:19:14 > 0:19:17Yes, that is a good idea and the agent reckons that ensuite
0:19:17 > 0:19:22could add £10,000-£15,000 to the value of the property.
0:19:22 > 0:19:24What else would the agent recommend?
0:19:24 > 0:19:28I think I would try and create a separate access to the third bedroom.
0:19:28 > 0:19:32It may mean the removal of the chimney breasts in the property
0:19:32 > 0:19:35to give you that extra space in the second bedroom.
0:19:35 > 0:19:38Well, the agent thinks that if you lost that bedroom, that would take
0:19:38 > 0:19:43as much as £20,000 off the valuation, so that doesn't seem worthwhile,
0:19:43 > 0:19:47but there is also something to heed when it comes to costs.
0:19:47 > 0:19:51As there are a lot of options to optimise the property,
0:19:51 > 0:19:54the ceiling value I would say would be £200,000
0:19:54 > 0:19:59and a ceiling rental value of £950 per calendar month.
0:20:00 > 0:20:02Yes, this property does need a lot of work
0:20:02 > 0:20:04but there is plenty of potential here
0:20:04 > 0:20:08and you have the added bonus of that parking out the back.
0:20:08 > 0:20:10I think this is a good one to go for.
0:20:10 > 0:20:13Let's see who agreed when we went to auction.
0:20:14 > 0:20:19Can I see £90,000 as a start? £90,000 bid. Can I say 90?
0:20:19 > 0:20:23I'm under way. And two. 92, 95, 97.
0:20:23 > 0:20:25There's lots of interest
0:20:25 > 0:20:31and we rejoin as the auctioneer is looking for a bid of £143,000.
0:20:31 > 0:20:38Right at the back, 143, madam? 143? At £142,000 at the back of the room.
0:20:38 > 0:20:42For the first time. 142, if anyone is coming in, for the second time.
0:20:42 > 0:20:49Third and final time at £142,000. 143. Wow, that is close!
0:20:49 > 0:20:55That was close. 143, first time. 143, second time.
0:20:55 > 0:20:58Your bid, sir, at 143,000, G780. Thank you.
0:21:00 > 0:21:03After a rather dramatic auction,
0:21:03 > 0:21:07the property was bought by Paul for £143,000.
0:21:09 > 0:21:12After many years working in the building trade,
0:21:12 > 0:21:14this is his first purchase at auction.
0:21:14 > 0:21:16Paul, congratulations.
0:21:16 > 0:21:19- Thank you very much.- Really good news that you got this on auction day.
0:21:19 > 0:21:21Why did you want to buy it?
0:21:21 > 0:21:25Well, it was in a good location from a working aspect.
0:21:25 > 0:21:27We found that, in the area,
0:21:27 > 0:21:33there seemed to be a lot of amenities that would pick up in the future.
0:21:33 > 0:21:36When you viewed this property for the first time, what did you think?
0:21:36 > 0:21:38I see that it had a lot of potential.
0:21:38 > 0:21:42I did a little bit of research, saw what it could make.
0:21:43 > 0:21:45After years quietly observing,
0:21:45 > 0:21:50Paul is very much looking forward to being the man calling the shots.
0:21:50 > 0:21:53What do you think you could do downstairs to add value
0:21:53 > 0:21:55and make this a better house to live in?
0:21:55 > 0:21:57We are looking at the back,
0:21:57 > 0:22:00possibly putting an extension on the back to open the property right out.
0:22:00 > 0:22:06- Maybe changing the entrance to another position.- Like where?
0:22:06 > 0:22:07Maybe on the back area there,
0:22:07 > 0:22:10so you are not walking straight into the sitting room.
0:22:10 > 0:22:12And you wouldn't think about copying the neighbour
0:22:12 > 0:22:14and putting a porch out the front?
0:22:14 > 0:22:18I like the look of the front of the building so if you put that there,
0:22:18 > 0:22:20it tends to change it from the character
0:22:20 > 0:22:23that is in the front of the building.
0:22:23 > 0:22:25It has some quite nice brickwork.
0:22:25 > 0:22:28It does have nice brickwork. I do agree with you.
0:22:28 > 0:22:30But I do like the way that you can walk into the porch
0:22:30 > 0:22:34- area before you get to the lounge. - Yes, so that is a possibility.
0:22:34 > 0:22:36We will get the team together
0:22:36 > 0:22:41and hopefully we can come up with a perfect solution that benefits.
0:22:41 > 0:22:44Although we're not completely in synch as to the location
0:22:44 > 0:22:48of the new entrance, I am glad to see it's a priority for Paul,
0:22:48 > 0:22:51so what about that more common conundrum?
0:22:51 > 0:22:54I have noticed you have got this downstairs bathroom.
0:22:54 > 0:22:56Not ideal, not everybody's cup of tea.
0:22:56 > 0:22:59What are you going to do about that? Will you change it?
0:22:59 > 0:23:02There is a possibility with the small bedroom at the back.
0:23:02 > 0:23:06Maybe turn that into a bathroom. There's a few possibilities there.
0:23:07 > 0:23:09I hope Paul takes some advice.
0:23:09 > 0:23:13The agent thought sacrificing that bedroom could cost 20 grand.
0:23:13 > 0:23:16And there's that ceiling valuation to consider.
0:23:17 > 0:23:21But he is approaching this project with imagination which is great.
0:23:21 > 0:23:25And I think being a builder, well, that is going to come in very handy.
0:23:25 > 0:23:27One of the things that slightly worries me
0:23:27 > 0:23:31is the floor that goes, urgh, like that!
0:23:31 > 0:23:35Standing here, I can even feel the floor beneath me is really bouncy.
0:23:35 > 0:23:37What do you think is going on?
0:23:37 > 0:23:42What's probably happened is the wall plates on the subfloor have
0:23:42 > 0:23:45collapsed and the joists have tilted.
0:23:45 > 0:23:49So what we will be doing is completely ripping the floor
0:23:49 > 0:23:53out, re-establishing the brickwork and putting new joists
0:23:53 > 0:23:55in down on the new floor.
0:23:55 > 0:23:57So nothing terribly worrying,
0:23:57 > 0:24:00- just slightly ambitious on the building front?- Yes.
0:24:00 > 0:24:03Other people that may have come in here probably think there is a lot
0:24:03 > 0:24:07more involved but we have done it time and time again.
0:24:09 > 0:24:12Paul plans to transform this place within three months.
0:24:12 > 0:24:13Will his budget reflect that?
0:24:13 > 0:24:15How much are you going to spend?
0:24:15 > 0:24:18We are looking to spend around 20,000.
0:24:18 > 0:24:21It may creep a little bit higher but, you know, for what
0:24:21 > 0:24:25we want to do, we've got to try and hit the high-end of the market.
0:24:25 > 0:24:26So is this quite an easy job?
0:24:26 > 0:24:28- Is this one of the easier jobs you will have done?- Yes.
0:24:28 > 0:24:30Am I going to be really impressed with this?
0:24:30 > 0:24:32- I am hoping you will be, yes. - Good luck with it.
0:24:32 > 0:24:35- It's lovely to meet you today. - Thank you very much.- Thank you.
0:24:35 > 0:24:38So after 25 years in the building industry,
0:24:38 > 0:24:41Paul has now decided to invest in his first property.
0:24:41 > 0:24:44He has got useful skills and contacts
0:24:44 > 0:24:48but will he make the right decision about that bathroom location?
0:24:48 > 0:24:53And will he stick to that 20 grand budget? Questions, questions!
0:24:53 > 0:24:56You can find out the answers later on in the show.
0:24:58 > 0:25:02Still to come, the thrill of starting work in Cumbria.
0:25:02 > 0:25:07- Are you excited about this? - Yes, definitely. Yes. Of course.
0:25:09 > 0:25:11To the reality of getting it done in Kent.
0:25:11 > 0:25:14The only thing that remained was the staircase.
0:25:18 > 0:25:20We return to the north of England now,
0:25:20 > 0:25:24where Joe and Emma took a chance on a spacious two-bedroom
0:25:24 > 0:25:28property in the popular area of Newcastle upon Tyne.
0:25:28 > 0:25:30It's a big flat, isn't it?
0:25:30 > 0:25:32You walk in the door and it is, "Wow, look at this."
0:25:32 > 0:25:34Yes. It's a lot of flat here.
0:25:34 > 0:25:36I think that is one of the things that really,
0:25:36 > 0:25:40when we saw it, for the price in this area, we just thought,
0:25:40 > 0:25:44- this is a good lot of flat for the money.- Definitely.
0:25:44 > 0:25:47And so we thought it was worth a punt.
0:25:47 > 0:25:51Indeed. In many ways it was a no-brainer for the couple.
0:25:51 > 0:25:55But the floor had boreholes which suggested significant issues.
0:25:55 > 0:25:58- We had that done after the auction. - Right.
0:25:58 > 0:26:04- So we now need to consider some options.- What do you mean?
0:26:04 > 0:26:09Well, because the tests have come back that it's a sulphate attack.
0:26:09 > 0:26:13That sulphate attack was bad news, as digging up the floors
0:26:13 > 0:26:18and making it all good was going to cost £20-25,000.
0:26:18 > 0:26:21Considering the purchase price of 65,000,
0:26:21 > 0:26:25that would be a very unwelcome outcome.
0:26:25 > 0:26:28- Ooh!- Yes, ouch. - How do you feel at the moment?
0:26:28 > 0:26:31It's disappointing but we have got to find out a bit
0:26:31 > 0:26:34more about this because it may be that we are not liable to
0:26:34 > 0:26:38pay for the work since we don't own the freehold.
0:26:38 > 0:26:41They have a lot of researching and heart searching to do,
0:26:41 > 0:26:46as they bought it as an option two property and could still pull out.
0:26:46 > 0:26:48So would they change their minds?
0:26:48 > 0:26:51Let's go back to find out what happened next.
0:26:51 > 0:26:55# If you change your mind I'm the first in line
0:26:55 > 0:26:57# Honey, I'm still free
0:26:57 > 0:27:00# Take a chance on me
0:27:00 > 0:27:05# If you need me, let me know Gonna be around... #
0:27:08 > 0:27:13We had a new boiler put in and we also had a partial rewire.
0:27:13 > 0:27:16We then installed a new kitchen, new bathroom
0:27:16 > 0:27:21and decorated throughout with new painting, new flooring, etc.
0:27:21 > 0:27:25# Have a little patience... #
0:27:25 > 0:27:29Although it has been 18 months since the auction, it is
0:27:29 > 0:27:31only the last 12 weeks that they have had the chance to
0:27:31 > 0:27:35work on the flat because of course that floor issue had to be resolved.
0:27:35 > 0:27:38In the end, everything rested on whether the vendor would
0:27:38 > 0:27:40pay for the work.
0:27:40 > 0:27:43Thankfully, after a little bit of time, they did get the work done
0:27:43 > 0:27:50and earlier this year we were able to complete on the purchase and move on.
0:27:50 > 0:27:53With all those issues resolved, the couple could finally get on.
0:27:53 > 0:27:55So who did all the work?
0:27:56 > 0:28:01I was the project manager, making sure we had the materials
0:28:01 > 0:28:04and sort of had a timescale with everything.
0:28:04 > 0:28:08And I was the dogsbody, basically the hod carrier!
0:28:08 > 0:28:12Ripping stuff out and pulling stuff down and painting
0:28:12 > 0:28:14and decorating, I did a lot of that.
0:28:14 > 0:28:18We did get tradesmen in for the boiler for the heating
0:28:18 > 0:28:21system and the electrician. And we did get a kitchen fitter, didn't we?
0:28:21 > 0:28:23Yes, just to speed things up a little bit.
0:28:23 > 0:28:26I did a lot of the cleaning and things as well!
0:28:27 > 0:28:30Besides the main issues, Joe and Emma took a lot of pleasure
0:28:30 > 0:28:34in addressing the more dated aspects of the property.
0:28:34 > 0:28:39OK, so we're in the bathroom. Originally in here was a pink suite.
0:28:39 > 0:28:42It took me great pleasure in ripping everything out.
0:28:42 > 0:28:45We've refurbished it top to bottom, new tiles on the floor
0:28:45 > 0:28:48and walls, new white suite with chrome finish
0:28:48 > 0:28:51and we're really pleased with how it has turned out.
0:28:51 > 0:28:54But for Joe, even that change can be topped.
0:28:54 > 0:28:57I am most pleased with the way that the kitchen has turned out.
0:28:57 > 0:29:00I think Emma did a lot of the design on the kitchen
0:29:00 > 0:29:03and the redecoration and the shelving.
0:29:03 > 0:29:07It is a smallish space so getting that space well used was
0:29:07 > 0:29:10important for us and I'm really pleased how that has turned out.
0:29:10 > 0:29:14So a fantastic transformation. How did their budget hold up?
0:29:15 > 0:29:20The original budget was 9,000. We ended up spending just under 11,000.
0:29:20 > 0:29:25A bit because we were moving in and we wanted to have a nice finish
0:29:25 > 0:29:26and I think it has been worth it.
0:29:26 > 0:29:29We're happy with the results.
0:29:29 > 0:29:32Originally, Joe and Emma had no plans to live here,
0:29:32 > 0:29:34so how did that come about?
0:29:34 > 0:29:36When we bought it at auction, the plan was for us
0:29:36 > 0:29:39to buy this as an investment to rent out,
0:29:39 > 0:29:41to add to our portfolio of buy-to-let properties.
0:29:41 > 0:29:46As it turned out, because it took so long to complete, we were in
0:29:46 > 0:29:50the process of selling our house and wanting to move to a bigger house.
0:29:50 > 0:29:54We hadn't found that property yet so in the interim we decided to move
0:29:54 > 0:29:58here, finish off the decoration and then look out for our dream house.
0:29:59 > 0:30:03Great plan. And has that dream house shown itself?
0:30:03 > 0:30:05We have found the dream house, yes.
0:30:07 > 0:30:10Patience, coolness, determination.
0:30:10 > 0:30:14Qualities needed for every project but especially this one.
0:30:14 > 0:30:17It is great that it has paid off as their dream house awaits.
0:30:17 > 0:30:20But when this young family leaves, will they hold on to
0:30:20 > 0:30:25their property and rent it or sell it at the earliest opportunity?
0:30:26 > 0:30:32We asked two local agents to come along and help them decide.
0:30:32 > 0:30:35First, though, what are their thoughts on the work done here?
0:30:35 > 0:30:37This is my second visit to the property
0:30:37 > 0:30:40and I am very impressed with all the changes that have been made.
0:30:40 > 0:30:41The property is in really good condition,
0:30:41 > 0:30:43it has been refurbished to a high standard.
0:30:43 > 0:30:46This is my first time inside this property.
0:30:46 > 0:30:49I feel that the work that has been carried out appears to
0:30:49 > 0:30:51be of a very high standard.
0:30:51 > 0:30:55It is bright, it is airy and a very nice property.
0:30:55 > 0:30:59So, options galore. What about that sale price?
0:30:59 > 0:31:02If this property was to be put on the market as it is now,
0:31:02 > 0:31:06I would expect to achieve in the region of £100,000, perhaps slightly
0:31:06 > 0:31:09higher if we get a couple of people who are interested at the same time.
0:31:09 > 0:31:15I would say that it would achieve around the £100,000+ mark.
0:31:15 > 0:31:18I think that is broadly what we expected.
0:31:18 > 0:31:20It is on the market for slightly higher
0:31:20 > 0:31:23but we would probably accept something around there.
0:31:25 > 0:31:31A £100,000 sell price would mean a potential pre-tax profit of £24,000.
0:31:31 > 0:31:34Originally, Emma and Joe wanted this property for their rental
0:31:34 > 0:31:38portfolio so what kind of rentals might this flat achieve?
0:31:38 > 0:31:41For this property, I would expect it to achieve in the region
0:31:41 > 0:31:44of £500 per calendar month for rent.
0:31:44 > 0:31:48I would put a figure on of between £525 per calendar month
0:31:48 > 0:31:52and £550 per calendar month.
0:31:52 > 0:31:55If you take that top price of £550,
0:31:55 > 0:32:00that would mean an annual return of 8.5 percent on their investment.
0:32:00 > 0:32:03Pretty much what we would have expected, around 500.
0:32:03 > 0:32:08If we could get up to 550 that would be something to consider.
0:32:08 > 0:32:10Absolutely.
0:32:10 > 0:32:14Joe and Emma have handled every problem faced here with guts
0:32:14 > 0:32:16and determination and it is a credit to them
0:32:16 > 0:32:20that, at the end, they have two good options to think about.
0:32:20 > 0:32:22How was the overall experience?
0:32:24 > 0:32:27The experience has been really good.
0:32:27 > 0:32:29Really challenging at times,
0:32:29 > 0:32:33sometimes stressful as we said around the time that we moved in.
0:32:33 > 0:32:36But we have learnt a lot and it has been a really good experience.
0:32:36 > 0:32:39- I think we would definitely do it again.- Absolutely.
0:32:39 > 0:32:42It has also allowed us to get into the position where we can
0:32:42 > 0:32:46find our dream house so it has worked really well for us.
0:32:49 > 0:32:53Hadrian's Wall helped secure the Roman Empire's frontier
0:32:53 > 0:32:58and it stretches from South Shields to Ravenglass in Cumbria,
0:32:58 > 0:33:00and that is the county I am visiting.
0:33:00 > 0:33:04The area is rich in Roman history and the market town of Brampton
0:33:04 > 0:33:08has a particular archaeological treasure, Birdoswald Fort.
0:33:09 > 0:33:13It is a lovely area and nine miles from Carlisle.
0:33:13 > 0:33:15The town has a train station which can get you to the
0:33:15 > 0:33:18city in under half an hour.
0:33:18 > 0:33:21Well, on the edge of town, about a mile from the market square,
0:33:21 > 0:33:24is the property I am here to see.
0:33:24 > 0:33:29£95,000+ was the guide price for a two-bedroom semidetached bungalow.
0:33:29 > 0:33:31It sounds pretty promising.
0:33:31 > 0:33:34The house is set in this quiet, pretty cul-de-sac
0:33:34 > 0:33:38so let's hope the inside is just as pleasing to the eye.
0:33:38 > 0:33:39So what have we got?
0:33:39 > 0:33:41Decent sized living room there
0:33:41 > 0:33:44and I really like the fact that the centre of the bungalow has
0:33:44 > 0:33:47what some people might consider to be a bit of a waste of space,
0:33:47 > 0:33:49this very large corridor.
0:33:49 > 0:33:55But actually, I think that gives a nice sort of open feel.
0:33:55 > 0:33:58So, useful, erm, no,
0:33:58 > 0:34:02perfect in terms of generating a good feeling, definitely.
0:34:02 > 0:34:05Likewise, a good-sized bedroom there and it is nice to have
0:34:05 > 0:34:07those built-in cupboards.
0:34:07 > 0:34:11Bathroom looks to be in slightly dated condition.
0:34:11 > 0:34:14But you could certainly do some good things there.
0:34:14 > 0:34:16Through to the second bedroom.
0:34:16 > 0:34:21Again, not a bad size for a small bungalow like this which leaves
0:34:21 > 0:34:23only one room yet to discover.
0:34:23 > 0:34:24The kitchen.
0:34:26 > 0:34:28Small but shaping up to be perfectly formed
0:34:28 > 0:34:31and in really quite nice cared for condition.
0:34:31 > 0:34:35It's been a long time since I've seen a blue suite!
0:34:35 > 0:34:37The fire in the living room might need some updating,
0:34:37 > 0:34:40as might those single-glazed windows.
0:34:40 > 0:34:44And there is a really generous garden. Meanwhile, back indoors...
0:34:46 > 0:34:48Oh, half-decent sized space.
0:34:48 > 0:34:51Admittedly at the moment in a bit of a mess.
0:34:51 > 0:34:54You need to put new units in but you have got a lot of space to
0:34:54 > 0:34:58play with. Lovely views out the windows. What more could you want?
0:34:58 > 0:35:00So a bit of a surprise.
0:35:00 > 0:35:03Not that massive looking on the outside, but once you get in,
0:35:03 > 0:35:05it's great.
0:35:05 > 0:35:08This small bungalow has given me big ideas,
0:35:08 > 0:35:11or at least ideas of making it bigger.
0:35:11 > 0:35:13And I always like to look out for an opportunity to make
0:35:13 > 0:35:16the most of an unused space.
0:35:16 > 0:35:18Here in the bathroom I have spotted one,
0:35:18 > 0:35:24currently this cupboard houses the hot water tank.
0:35:24 > 0:35:27If you were to replace that system with, say, a combi boiler which is
0:35:27 > 0:35:30situated in the kitchen, this cupboard then becomes free.
0:35:30 > 0:35:33With a bit of playing around and maybe taking down a chimney
0:35:33 > 0:35:34stack or whatever,
0:35:34 > 0:35:38you could end up with either an improved bathroom, maybe a shower,
0:35:38 > 0:35:42or, I don't know, maybe knocking through to the kitchen perhaps.
0:35:42 > 0:35:43Food for thought.
0:35:43 > 0:35:46Look out for those cupboards, you never know what
0:35:46 > 0:35:49they may contain and what opportunities they might present.
0:35:51 > 0:35:55You would only need to do serious work here if you really wanted to.
0:35:55 > 0:35:58You could also think about extending the property or converting
0:35:58 > 0:36:02the loft, both of which could seriously increase the return
0:36:02 > 0:36:05on your investment here, if you get planning permission of course.
0:36:05 > 0:36:06Now, that is
0:36:06 > 0:36:10not bad potential for a quiet little bungalow in a quiet little street.
0:36:10 > 0:36:13We asked along the auctioneer who sold the bungalow to let us
0:36:13 > 0:36:18know his thoughts on this property, guided at £95,000.
0:36:20 > 0:36:23The options with this particular bungalow is to leave the front
0:36:23 > 0:36:28footprint alone, refurb it, windows, kitchen, bathroom,
0:36:28 > 0:36:31new wall covers, new floor coverings.
0:36:31 > 0:36:35The only other thing you might do is perhaps swap
0:36:35 > 0:36:38the lounge around with the back bedroom.
0:36:38 > 0:36:41If you put the lounge into the back with the views to the gardens.
0:36:41 > 0:36:43You don't have to but that is an option.
0:36:43 > 0:36:46The other option, of course, is to extend it
0:36:46 > 0:36:49- and maybe put a third bedroom in. - Good suggestions.
0:36:49 > 0:36:51I like the idea of swapping the living room to the back.
0:36:51 > 0:36:54You could have French windows on to the garden.
0:36:54 > 0:36:57That would make this house much more appealing.
0:36:57 > 0:37:00And if the new owner decided to keep the layout the same but just
0:37:00 > 0:37:05refurbish and redecorate, how much does he think it would resell for?
0:37:05 > 0:37:11I think the property would achieve in the region of £170-180,000.
0:37:12 > 0:37:16And what if the extension work was done? How much could it achieve?
0:37:16 > 0:37:20If the property was to be refurbished and extended,
0:37:20 > 0:37:23and a third bedroom could be added with maybe a utility
0:37:23 > 0:37:29room as well, I think you would be up towards the £200,000 region.
0:37:29 > 0:37:32If the bungalow was to remain on the same footprint,
0:37:32 > 0:37:34what kind of rental could it achieve?
0:37:34 > 0:37:37I think if this property was exposed to the rental market,
0:37:37 > 0:37:41and it is a very healthy rental market in this area, I think you
0:37:41 > 0:37:45would achieve in excess of £600 per calendar month.
0:37:45 > 0:37:48Bungalows are always popular at the auctions
0:37:48 > 0:37:51and I am sure this one was no exception.
0:37:51 > 0:37:54Let's find out who bought it.
0:37:54 > 0:37:58OK, lot number 37. Start me off at £90,000.
0:37:58 > 0:38:02I need a bid, can't sell it without a bid. 90 here. At 90, I'm away.
0:38:02 > 0:38:09And away they went. Small determined steps. We rejoin at £118,000.
0:38:09 > 0:38:16118? Having a discussion. First time then, at 117. 118 I've got now.
0:38:16 > 0:38:22And a half. Thinking about it. With you at 118,000. On the back row then.
0:38:22 > 0:38:28Here to sell. First time at 118. Are you sure? Second time at 118.
0:38:28 > 0:38:32Selling it. Third and final time. All done? All out.
0:38:32 > 0:38:36Against you, against you. With you. Selling away.
0:38:36 > 0:38:38Well done, sir.
0:38:38 > 0:38:41I love the auction but it is a shame that someone has to lose out
0:38:41 > 0:38:43when people really want a property.
0:38:43 > 0:38:46The successful bid of 118,000, that is
0:38:46 > 0:38:50£23,000 over the guide price, was made by Craig
0:38:50 > 0:38:55and his wife Andrea, who live about 17 miles away from the bungalow.
0:38:55 > 0:38:57This is their first property investment.
0:38:57 > 0:39:00Andrea is a night support worker for the elderly,
0:39:00 > 0:39:03while Craig runs a small organic beef farm.
0:39:08 > 0:39:12- Craig, good to meet you!- Hi. - Congratulations.- Thanks.
0:39:12 > 0:39:16- Tell me why you wanted to buy this place.- This is just a new thing.
0:39:16 > 0:39:20We thought we'd put it into buildings instead of in the bank.
0:39:20 > 0:39:25- And that was a fairly easy decision to make?- Hmmm... Yes. Yes, yes.
0:39:25 > 0:39:29Put it in the bank, you only get 1% or 2%, if that.
0:39:29 > 0:39:31If it's in a house, you can rent it out,
0:39:31 > 0:39:33or your son can go and live in it.
0:39:33 > 0:39:37Right, sounds good. Why this particular property, then?
0:39:37 > 0:39:40Came and had a look up here and fell in love with it.
0:39:40 > 0:39:43- Lovely little house, so we've decided to go for this one.- Great.
0:39:43 > 0:39:46The principle being that, even though it's not for you,
0:39:46 > 0:39:48if you've fallen in love with it, then somebody else will.
0:39:48 > 0:39:50Yes, definitely.
0:39:50 > 0:39:53It's always got potential to rent out, or family can move in,
0:39:53 > 0:39:57- or we could retire here in years to come.- Yeah.- Maybe.
0:39:57 > 0:40:01Craig has got himself a nice little house in a lovely location,
0:40:01 > 0:40:02so he can definitely relax.
0:40:02 > 0:40:07Well, after his sizeable list of jobs is complete, that is.
0:40:07 > 0:40:10Put windows and doors in, double glazing. Upgrade that.
0:40:10 > 0:40:14We're going to renew our heating system, put a combi boiler in.
0:40:14 > 0:40:18We're taking the old boiler and tank out,
0:40:18 > 0:40:22and the chimney out of the bathroom, to make the bathroom bigger,
0:40:22 > 0:40:25- and a new kitchen, and just, basically, decorate it.- Right.
0:40:25 > 0:40:27And bring it up to spec.
0:40:27 > 0:40:31Any thoughts about enhancing it size-wise?
0:40:31 > 0:40:32We can't go to the side,
0:40:32 > 0:40:36cos that would limit the access to get round to the back of the garden.
0:40:36 > 0:40:38Also, that would cut off the garage.
0:40:38 > 0:40:40Maybe to the front would be the easiest,
0:40:40 > 0:40:43but I don't know whether we would get permission for that.
0:40:43 > 0:40:46And at the back of the house, it's got a three-foot drop, which would...
0:40:46 > 0:40:49You want all the same with floor levels.
0:40:49 > 0:40:52You can't have it stepping down, which wouldn't be good.
0:40:52 > 0:40:55Ah, Craig has done some valuable research on this house,
0:40:55 > 0:40:59and his findings throw up important things to bear in mind
0:40:59 > 0:41:00when thinking about extensions.
0:41:00 > 0:41:04It appears Craig knows exactly what he's going to be doing
0:41:04 > 0:41:05and also who's doing it.
0:41:07 > 0:41:08We've got a family builder,
0:41:08 > 0:41:11my father-in-law is a joiner, and he's got a friend
0:41:11 > 0:41:15who's a painter, so we're quite well sorted out.
0:41:15 > 0:41:18We're getting an electrician in and a plumber
0:41:18 > 0:41:21to make sure that's all up to standard.
0:41:21 > 0:41:23How much work are you going to actually do?
0:41:23 > 0:41:24As much as we can.
0:41:24 > 0:41:27We'll knock walls down and take chimneys out
0:41:27 > 0:41:30- and basically clean the spot up a bit.- Are you excited about this?
0:41:30 > 0:41:35Yes, definitely. Of course. It's a good thing to do.
0:41:35 > 0:41:38So you'll manage to find time in between your farming
0:41:38 > 0:41:40- to do the work, will you?- Yes.
0:41:40 > 0:41:45- We're hoping to have this done and dusted in three months' time.- OK.
0:41:45 > 0:41:47- And the budget of around... - Around about 12,000.
0:41:47 > 0:41:51If this goes well, is it something you might consider doing more of?
0:41:51 > 0:41:55Yes, but I would have to get some more money scraped together.
0:41:55 > 0:41:59Listen, congratulations, well done and very nice to meet you.
0:41:59 > 0:42:02- Thank you.- And good luck with it. - Thank you very much.
0:42:02 > 0:42:07So, a good choice for farmer Craig's first investment property.
0:42:07 > 0:42:09- It's certainly cold today. - HE BREATHES COLD AIR
0:42:09 > 0:42:13Will it be 'Friesian' when we get back? Hopefully not. Ooh.
0:42:13 > 0:42:15Join us later in the show to find out.
0:42:19 > 0:42:22So, we've seen how one of our auction properties turned out -
0:42:22 > 0:42:23- what about the other two?- Hmm.
0:42:23 > 0:42:27Have there been many changes, or have they remained exactly the same?
0:42:27 > 0:42:29Let's find out.
0:42:30 > 0:42:33We make our way again to Swanscombe in Kent
0:42:33 > 0:42:36where, after years of working for property developers,
0:42:36 > 0:42:41Paul decided it was time to strike out and become one himself,
0:42:41 > 0:42:44investing 143,000 on this property.
0:42:45 > 0:42:47Why did you want to buy it?
0:42:47 > 0:42:51Well, it was in a good location for our working aspect.
0:42:51 > 0:42:54We found that, in the area, there seemed to be
0:42:54 > 0:42:59a lot of amenities that would pick up in the future.
0:42:59 > 0:43:02So, what do you think you could do downstairs to add value
0:43:02 > 0:43:04and make this a better house to live in?
0:43:04 > 0:43:06We're looking at the back,
0:43:06 > 0:43:11possibly putting the extension on the back to open the property right out.
0:43:11 > 0:43:15Maybe changing the entrance to another position...
0:43:15 > 0:43:19This property was long neglected and it showed,
0:43:19 > 0:43:21and with a layout that would have many feng shui masters
0:43:21 > 0:43:25weeping in the corner, Paul had some serious decisions to make.
0:43:26 > 0:43:29Now, I've noticed you've got this downstairs bathroom.
0:43:29 > 0:43:31Not ideal, not everybody's cup of tea...
0:43:31 > 0:43:33What are you going to do about that? Will you change it?
0:43:33 > 0:43:35It's a possibility.
0:43:35 > 0:43:37With the small bedroom at the back,
0:43:37 > 0:43:38maybe turn that into a bathroom.
0:43:38 > 0:43:40There's a few possibilities there.
0:43:41 > 0:43:44Yes, possibilities there definitely were,
0:43:44 > 0:43:47but there was also the possibility of reducing
0:43:47 > 0:43:51the value of the house if a bedroom was lost to the upstairs bathroom.
0:43:51 > 0:43:54Experienced builder Paul had 20,000 to spend on the property.
0:43:54 > 0:43:56So, is this quite an easy job for you?
0:43:56 > 0:43:59- Is this one of the easier jobs you'll have done?- Yes, yes.
0:43:59 > 0:44:02- Am I going to be really impressed with this? - Well, I'm hoping you will be, yeah.
0:44:02 > 0:44:07Paul - cool and collected - was sure that his years of experience
0:44:07 > 0:44:11in the trade would see a happy conclusion to his project.
0:44:11 > 0:44:15He was out to impress. So, go on, Paul! Impress me!
0:44:16 > 0:44:19MUSIC: Amazing by George Michael
0:44:36 > 0:44:40Since you were last here, we've changed all the windows,
0:44:40 > 0:44:43put a completely new central heating system in.
0:44:43 > 0:44:45We've built the extension
0:44:45 > 0:44:48and we've put bifold doors to the rear of the property,
0:44:48 > 0:44:52and we've put VELUX windows in the lightwell to light the staircase,
0:44:52 > 0:44:56and we've also put VELUX windows in the roof of the extension
0:44:56 > 0:45:00so you've got light going round the property virtually all day long.
0:45:03 > 0:45:06The transformation here is incredible.
0:45:06 > 0:45:07It seemed like an impossible task,
0:45:07 > 0:45:12but making use of the outside space and building an extension gave Paul
0:45:12 > 0:45:16a great opportunity to address all the issues with the original layout.
0:45:21 > 0:45:24We've extended the sides of the rear elevation
0:45:24 > 0:45:27which has made it open plan downstairs,
0:45:27 > 0:45:31which introduces the kitchen/dining/sitting room area
0:45:31 > 0:45:34if you're going to use the front area as a bedroom.
0:45:34 > 0:45:38Paul seemed to use all his experience to look at the situation.
0:45:39 > 0:45:42With the only bathroom downstairs,
0:45:42 > 0:45:45and the small room without its own access upstairs...
0:45:47 > 0:45:51..something had to be done, and he acted accordingly.
0:45:51 > 0:45:55Well, what we've done on the first floor is created
0:45:55 > 0:46:00the bathroom behind me here, freeing up the space in the ground floor.
0:46:00 > 0:46:03We've also created this corridor area
0:46:03 > 0:46:06because the corridor wasn't here prior to that.
0:46:06 > 0:46:09We had just a room, two bedrooms up here,
0:46:09 > 0:46:12with an open door behind me,
0:46:12 > 0:46:18and also we've then taken the bedroom two into the ground floor,
0:46:18 > 0:46:22so you have two large bedrooms, and, to my left-hand side, bedroom three.
0:46:25 > 0:46:29Paul went above, beyond and - not forgetting - a little back
0:46:29 > 0:46:31to achieve his goals here.
0:46:31 > 0:46:34How was his timetable?
0:46:34 > 0:46:36It's taken four months.
0:46:36 > 0:46:41With the planning application, we had to clear the property
0:46:41 > 0:46:44to start the works anyway,
0:46:44 > 0:46:47so we stripped the old furniture out,
0:46:47 > 0:46:51stripped all the walls back to see what we had,
0:46:51 > 0:46:54and we applied for planning application,
0:46:54 > 0:46:57which takes around six weeks,
0:46:57 > 0:47:00so, once we've got that, then we started our works.
0:47:00 > 0:47:03More than acceptable - amazing!
0:47:03 > 0:47:07The access to the property has also been addressed,
0:47:07 > 0:47:11with the main door shifted further back, allowing more privacy
0:47:11 > 0:47:12and opening up the front room,
0:47:12 > 0:47:17giving any buyer the option of using it as a sitting room or a bedroom.
0:47:17 > 0:47:21So, a huge job, and I'm very impressed.
0:47:21 > 0:47:26But what about the £20,000 budget?
0:47:26 > 0:47:29We've probably done around...
0:47:29 > 0:47:3150,000...
0:47:31 > 0:47:33on the budget.
0:47:33 > 0:47:36We only were intending to spend around 20...
0:47:36 > 0:47:39But, in the meantime, what we've done...
0:47:39 > 0:47:41We had no central heating,
0:47:41 > 0:47:44so we've put complete central heating through there.
0:47:44 > 0:47:47Also, we've virtually gutted the property and started again.
0:47:47 > 0:47:50The only thing remaining was the staircase.
0:47:51 > 0:47:56Going 30,000 over his budget means that Paul's total spend here
0:47:56 > 0:47:59is 193,000.
0:47:59 > 0:48:02But Paul should still be proud of his achievements.
0:48:02 > 0:48:05However, this game is about profit,
0:48:05 > 0:48:09so we asked two local estate agents to come along and take a look.
0:48:09 > 0:48:12Having looked round the property, I think the extension
0:48:12 > 0:48:15and the kitchen area that he's created is a great space
0:48:15 > 0:48:17for families and couples alike.
0:48:17 > 0:48:20Adding the bathroom upstairs is what most buyers
0:48:20 > 0:48:22would be looking for in a property in this area.
0:48:22 > 0:48:24I think the property is a really nice property.
0:48:24 > 0:48:26It's been refurbished to a really high standard.
0:48:26 > 0:48:30Moving the bathroom upstairs does allow the property to be
0:48:30 > 0:48:34used for a young, growing family or indeed a young first-time buyer.
0:48:34 > 0:48:36With the new layout, how would they market this house?
0:48:36 > 0:48:40I think I would market this property as a two/three-bedroom property,
0:48:40 > 0:48:43because there's a separate room at the front which could be used
0:48:43 > 0:48:46as the dining room or as a third bedroom if necessary.
0:48:46 > 0:48:49And what impressed them most about the work here?
0:48:49 > 0:48:52The extension, with its vaulted area in the ceiling
0:48:52 > 0:48:55and the trifold doors leading onto the garden...
0:48:55 > 0:48:58It's a great addition to the property.
0:48:58 > 0:49:00I think that's the part of the house which will attract
0:49:00 > 0:49:02the buyer in putting an offer forward.
0:49:02 > 0:49:05I think the layout of the property is a really good layout.
0:49:05 > 0:49:07The kitchen/diner at the back going out onto the garden
0:49:07 > 0:49:09is a really good idea for the house.
0:49:09 > 0:49:12I think it suits the style of house that we've got here.
0:49:14 > 0:49:18Most importantly, what did they feel it would go for on the open market?
0:49:18 > 0:49:23This property for circa £215,000 to achieve anywhere above £210,000.
0:49:23 > 0:49:29I believe this property could re-sell for £220,000 on today's market.
0:49:30 > 0:49:34So, if you take the top estimate of £220,000,
0:49:34 > 0:49:39that would give Paul a profit of £27,000, so not bad!
0:49:39 > 0:49:43But it's hard to keep up with Paul, because he's already been
0:49:43 > 0:49:46putting the property out there and he's had a result!
0:49:47 > 0:49:53We have had an offer of 245 for the property, which is going through
0:49:53 > 0:49:57at the moment, so hopefully we can move on to the next property.
0:49:57 > 0:49:59Wow. The man is on fire!
0:49:59 > 0:50:04With a £245,000 offer, that brings Paul's profit -
0:50:04 > 0:50:08before taxes and expenses, of course - to £52,000.
0:50:08 > 0:50:10Well done, Paul.
0:50:16 > 0:50:19We return to Brampton, Cumbria now,
0:50:19 > 0:50:23where Craig and his wife Andrea bought this wonderfully secluded
0:50:23 > 0:50:27two-bedroom bungalow for £118,000 at auction.
0:50:27 > 0:50:29Tell me why you wanted to buy this place.
0:50:29 > 0:50:31This is just a new thing.
0:50:31 > 0:50:34We thought we would put it into buildings instead of in the bank.
0:50:34 > 0:50:40- And that was a fairly easy decision to make, was it?- Hmm. Yes, yes.
0:50:40 > 0:50:44- Good.- If you put it in the bank, you only get 1% or 2%, if that.
0:50:44 > 0:50:46If it's in a house, you can rent it out,
0:50:46 > 0:50:49or your son could go and live in it.
0:50:49 > 0:50:51Craig thought that this might even end up
0:50:51 > 0:50:54as a home to retire to in the future,
0:50:54 > 0:50:57but, in the meantime, given how popular bungalows are,
0:50:57 > 0:50:59I reckon this was a good investment.
0:50:59 > 0:51:01But he had a sizeable to-do list.
0:51:01 > 0:51:05Put windows and doors in, double glazing, upgrade that.
0:51:05 > 0:51:09We're going to renew the heating system, put a combi boiler.
0:51:09 > 0:51:13We're taking the old boiler and tank out,
0:51:13 > 0:51:17and the chimney out of the bathroom to make the bathroom bigger,
0:51:17 > 0:51:20and a new kitchen, and just, basically, decorate it
0:51:20 > 0:51:22and bring it up to spec.
0:51:22 > 0:51:23Who could do the work?
0:51:23 > 0:51:27Well, we've got a family builder, my father-in-law's a joiner,
0:51:27 > 0:51:29and he's got a friend who's a painter,
0:51:29 > 0:51:31so we're quite well sorted out.
0:51:31 > 0:51:34We're getting an electrician in and a plumber
0:51:34 > 0:51:37to make sure that's all up to standard.
0:51:39 > 0:51:41As a farmer, Craig is no stranger to hard work,
0:51:41 > 0:51:44which is maybe one of the reasons
0:51:44 > 0:51:47he seems to be taking this all in his stride.
0:51:47 > 0:51:51Seven months later, we've come back, and, in true Craig style,
0:51:51 > 0:51:53it all seems rather easy.
0:51:53 > 0:51:57MUSIC: Easy by Commodores
0:52:23 > 0:52:25We did the garden.
0:52:25 > 0:52:28We've taken all the weeds out, cut the hedge down
0:52:28 > 0:52:30and things like that. Just, basically, tidied it up.
0:52:30 > 0:52:33And there were a few bits on the front of the house that needed pointing,
0:52:33 > 0:52:35but apart from that, it was in good condition, really.
0:52:35 > 0:52:39We've plastered the ceiling in here, we've sorted all the plastering out
0:52:39 > 0:52:42in the house, we've re-wired it,
0:52:42 > 0:52:45we've put new central heating in, we did the double glazing,
0:52:45 > 0:52:50and we've re-carpeted it, and we've put a nice new gas fire in here.
0:52:51 > 0:52:53A thorough job throughout.
0:52:53 > 0:52:56I'm impressed he's managed to get everything done.
0:52:56 > 0:52:58How did he balance the farm work with the project?
0:52:58 > 0:53:01We were here most weekends doing little bits and bobs,
0:53:01 > 0:53:05but we had family and friends who came and helped
0:53:05 > 0:53:06and did quite a lot, and also,
0:53:06 > 0:53:09we got tradesmen to do the specialist things
0:53:09 > 0:53:12like putting the windows in, electrics, gas, that sort of thing.
0:53:12 > 0:53:14So, a job well managed,
0:53:14 > 0:53:16and Craig took advantage of any spare time he had.
0:53:16 > 0:53:19But what was the biggest thing he had to contend with?
0:53:19 > 0:53:22Well, the biggest thing was taking the chimney out.
0:53:22 > 0:53:24I thought it would be a bit of a nightmare,
0:53:24 > 0:53:27but, luckily, the chimney wasn't tied into the main wall,
0:53:27 > 0:53:29so we didn't have to take a wall down.
0:53:29 > 0:53:32We could just knock a chimney down without having to alter the wall,
0:53:32 > 0:53:33which was brilliant.
0:53:33 > 0:53:36So, once we got it below the roof level,
0:53:36 > 0:53:39we just sealed the roof and then it wasn't a problem
0:53:39 > 0:53:42with water getting in or anything like that.
0:53:42 > 0:53:43Once we got the chimney out,
0:53:43 > 0:53:46there was a nice space to put a shower in
0:53:46 > 0:53:49and get rid of the airing cupboard with the copper tanking,
0:53:49 > 0:53:52cos we didn't need that anymore, cos we had a combi boiler in,
0:53:52 > 0:53:56which did away with the big tank.
0:53:56 > 0:54:00So, once we got that out and sealed the roof up again,
0:54:00 > 0:54:03we just had to re-plaster the ceiling in the bathroom,
0:54:03 > 0:54:06put the new bathroom in, and that was sorted.
0:54:06 > 0:54:11It seems that even the big jobs came with a certain element of luck.
0:54:11 > 0:54:13It's good to see, but Craig also feels lucky
0:54:13 > 0:54:17to have had his family and friends make such an effort.
0:54:17 > 0:54:21Keith, my father-in-law, he's a joiner and he came
0:54:21 > 0:54:24and did all the joinery work which needed done in the house.
0:54:24 > 0:54:26He put new doors on, all round.
0:54:26 > 0:54:29And then I had a family friend, Alan...
0:54:29 > 0:54:32He came and painted and decorated the whole house,
0:54:32 > 0:54:33which helped quite a bit,
0:54:33 > 0:54:36and I think he's made a marvellous job!
0:54:36 > 0:54:40Indeed! One room that needed a complete make-over was the kitchen.
0:54:40 > 0:54:44In the kitchen, we've re-plastered the ceiling,
0:54:44 > 0:54:46we've put nice new spotlights down,
0:54:46 > 0:54:50we've put new kitchen units in all-round, we've re-tiled it,
0:54:50 > 0:54:55re-plumbed it, and we've also put new wiring in here,
0:54:55 > 0:54:57I've got a brand-new radiator over there,
0:54:57 > 0:55:01and we did the floor, which I think looks like quite a good job.
0:55:01 > 0:55:05Ha! I'd go a little further and say an excellent job!
0:55:05 > 0:55:07How were his timescales?
0:55:07 > 0:55:09The timescale was about six months.
0:55:09 > 0:55:11It took about seven months,
0:55:11 > 0:55:15but it was just organising people to come when you needed them to,
0:55:15 > 0:55:19and sometimes people can't make it when you want them to,
0:55:19 > 0:55:22but you've just go to work round them and put up with it,
0:55:22 > 0:55:23and eventually get it done.
0:55:25 > 0:55:26Again, all very relaxed.
0:55:26 > 0:55:29But not having unrealistic deadlines goes a long way
0:55:29 > 0:55:31in creating a happy environment.
0:55:31 > 0:55:34What about the budget?
0:55:34 > 0:55:36The original budget was 10,000.
0:55:36 > 0:55:41I think we've spent about 9,800, which was about right.
0:55:41 > 0:55:44Um... You know, we've done quite a bit of work here,
0:55:44 > 0:55:47and I think we've done OK with the budget.
0:55:47 > 0:55:52Craig's being a little modest there. Coming in on budget is more than OK.
0:55:52 > 0:55:55With a total spend of almost £128,000,
0:55:55 > 0:55:58how will the returns look on this property on the open market?
0:55:59 > 0:56:03We asked two local agents to come along and give us an idea.
0:56:03 > 0:56:06He's done a fantastic job all the way through.
0:56:06 > 0:56:08Left it neutral, left some of the original features,
0:56:08 > 0:56:11such as the cupboards in the hallway, that kind of thing.
0:56:11 > 0:56:12He's done a very nice job.
0:56:12 > 0:56:15It's been very well refurbished. It's been a good job.
0:56:15 > 0:56:18I think the kitchen's been done well, and things like the windows,
0:56:18 > 0:56:20the general finish throughout, the carpeting,
0:56:20 > 0:56:22everything looks very good and well finished,
0:56:22 > 0:56:25and it would be ideal for any potential buyer.
0:56:25 > 0:56:27So, positive responses there.
0:56:27 > 0:56:30How much do they think the property could fetch if sold?
0:56:30 > 0:56:32If this was to go on the open market,
0:56:32 > 0:56:35I would market it at £180,000, or thereabouts,
0:56:35 > 0:56:40and I would expect him to achieve somewhere between 170 and 180.
0:56:40 > 0:56:43I would look to market this property around about £175,000.
0:56:43 > 0:56:47That's very, very good. That's more than I expected.
0:56:47 > 0:56:49We thought it would make about 160,
0:56:49 > 0:56:53but obviously, the more, the better, which would be really great.
0:56:53 > 0:56:55So, taking a top price of £180,000,
0:56:55 > 0:56:58Craig and his family could be looking at a potential profit
0:56:58 > 0:57:02of £52,000, minus taxes and fees, of course.
0:57:02 > 0:57:05How would things look on the rental market?
0:57:05 > 0:57:07If this property came to the rental market,
0:57:07 > 0:57:10I would expect it to achieve somewhere in the region
0:57:10 > 0:57:12of £600 per calendar month.
0:57:12 > 0:57:13I think, on the rental market,
0:57:13 > 0:57:16we could achieve around £550 per calendar month.
0:57:16 > 0:57:18That's what we were expecting.
0:57:18 > 0:57:21Maybe a bit more than I was expecting,
0:57:21 > 0:57:23but that's very, very good.
0:57:23 > 0:57:25I'm really pleased about that.
0:57:25 > 0:57:27As you should be!
0:57:27 > 0:57:30So, taking the top estimate, Craig could be looking
0:57:30 > 0:57:32at an annual return of almost 6%.
0:57:32 > 0:57:35An easy decision for Craig, I wonder...
0:57:36 > 0:57:38We're going to rent it out and keep it.
0:57:38 > 0:57:41We've got somebody in mind that wants to rent it,
0:57:41 > 0:57:45but we're not going to sell it, we're just going to keep it.
0:57:45 > 0:57:50A wise choice, and a decision that fits nicely with his laid back ways.
0:57:51 > 0:57:53Overall, an experience he'd repeat?
0:57:53 > 0:57:56Yes, I would definitely do another house,
0:57:56 > 0:57:58but it would have to be the right house.
0:57:58 > 0:58:02If you pick a good house at the right price, it should be OK.
0:58:02 > 0:58:03You can't really go wrong.
0:58:07 > 0:58:09What do you think?
0:58:09 > 0:58:11Would you have been tempted to buy any of those properties
0:58:11 > 0:58:14- at today's auctions?- Well, there's plenty more where they came from,
0:58:14 > 0:58:17so make sure you join us next time for more Homes Under The Hammer.
0:58:17 > 0:58:19Goodbye.