0:00:02 > 0:00:05Well, chances are a property is going to be the most expensive thing
0:00:05 > 0:00:07you ever buy. Unless you've got your eyes on a private jet.
0:00:07 > 0:00:10Well, if you're depending on the security for your future,
0:00:10 > 0:00:13there is no doubt about it, you have to tread carefully.
0:00:13 > 0:00:15But if you get a good deal,
0:00:15 > 0:00:18then there's more chance you're going to get a better profit.
0:00:18 > 0:00:22And one way to do that is to go down to your local auction house.
0:00:48 > 0:00:51Well, people have all sorts of plans for the properties
0:00:51 > 0:00:56they buy at auction. Sometimes those plans go well, other times they...
0:00:56 > 0:00:59well, shall we say...change?
0:00:59 > 0:01:03So, what were the plans for the properties they bought at auction?
0:01:03 > 0:01:05Let's take a look.
0:01:05 > 0:01:07In the Welsh town of Caerphilly there's a house
0:01:07 > 0:01:10that I'm almost too scared to look at.
0:01:12 > 0:01:14I'm expecting it to be pretty bad.
0:01:15 > 0:01:18Whereas in Rochester, Kent, I just want to see more.
0:01:20 > 0:01:23Will it carry on in the same vein? I can't wait to find out!
0:01:26 > 0:01:30But in Derbyshire, with this house, what you see is what you get.
0:01:30 > 0:01:33This is a classic fantastic auction purchase
0:01:33 > 0:01:36that you can add value to.
0:01:36 > 0:01:39All these properties have been bought at auction.
0:01:39 > 0:01:41We'll find out who bought them and what they paid for them
0:01:41 > 0:01:43when they went under the hammer.
0:01:43 > 0:01:46Yours, sir, madam. Well done.
0:01:50 > 0:01:55Caerphilly is the birthplace of the late, great fez-wearing comedian,
0:01:55 > 0:01:57Tommy Cooper.
0:01:57 > 0:02:00It's also where you can find the largest castle in Wales.
0:02:00 > 0:02:05Caerphilly Castle is a fantastic example of the 13th century
0:02:05 > 0:02:06military architecture
0:02:06 > 0:02:09and has recently been brought to the attention of the wider
0:02:09 > 0:02:14public by featuring in the series Merlin and Doctor Who.
0:02:14 > 0:02:18So from Wizards and Time Lords to little old me, just like that.
0:02:18 > 0:02:19HE LAUGHS
0:02:19 > 0:02:21Well, close to the centre of town
0:02:21 > 0:02:25and about 15 minutes by train from Cardiff on this estate, in this
0:02:25 > 0:02:29really lovely elevated position, is the property I'm here to see.
0:02:29 > 0:02:33Now, a three-bedroom semi wouldn't necessarily normally fall
0:02:33 > 0:02:37into the realm of first-time buyer territory.
0:02:37 > 0:02:41However, the guide price might just drag it that way.
0:02:41 > 0:02:44£48,000 plus was the price.
0:02:46 > 0:02:50Ah. But judging by the outside, I can see why.
0:02:51 > 0:02:53It's not looking good, is it?
0:02:55 > 0:02:59It is at a great price, and it'll be popular with first-time buyers.
0:02:59 > 0:03:03But boarded-up windows and an overgrown garden rarely indicate
0:03:03 > 0:03:06a property that's in good shape. However, you know what they say.
0:03:06 > 0:03:11# You can't judge a book by looking at the cover, whoa... #
0:03:11 > 0:03:13Hmmm. Fingers crossed.
0:03:16 > 0:03:18I'm expecting it to be pretty bad.
0:03:21 > 0:03:23Well...
0:03:24 > 0:03:26That's a pleasant surprise.
0:03:26 > 0:03:30Houses that are shuttered up, boarded up, or whatever,
0:03:30 > 0:03:32you never know quite what you're going to find.
0:03:32 > 0:03:37But this is intriguing. Neat plasterwork. Relatively...
0:03:37 > 0:03:41Well, in fact, brand-new-looking radiators.
0:03:41 > 0:03:44Into the sort of hallway area there you've got a lounge
0:03:44 > 0:03:48off to the left. Sorry if I'm not being that descriptive.
0:03:48 > 0:03:53I'm just slightly...um, shocked, actually! That's the word.
0:03:53 > 0:03:55Through there into this, which is
0:03:55 > 0:04:00a real sort of open plan kitchen-living area.
0:04:00 > 0:04:01New kitchen units.
0:04:01 > 0:04:07This is all very strange. Through here, new door frames. New doors.
0:04:07 > 0:04:09This...
0:04:09 > 0:04:11no kidding, Sherlock,
0:04:11 > 0:04:15looks like it's been subject to a major renovation already.
0:04:15 > 0:04:17Ooh, that's a bit of a disappointment.
0:04:17 > 0:04:20I expected to find a downstairs loo there, but there isn't one.
0:04:20 > 0:04:24Well, that, I have to say, is a first for Homes Under The Hammer.
0:04:24 > 0:04:25A house which actually...
0:04:28 > 0:04:34..looks much worse on the outside than on the in. Wow.
0:04:36 > 0:04:40OK, so for a three-bedroom family home it would be good
0:04:40 > 0:04:44to have a downstairs loo. But perhaps one could be put in.
0:04:44 > 0:04:45There's certainly space.
0:04:45 > 0:04:48And if we're talking family appeal, then a corner plot
0:04:48 > 0:04:51and a good-sized garden does no harm at all.
0:04:51 > 0:04:54So far, so... well, brilliant, actually.
0:04:57 > 0:05:02# It's just a nice surprise It's just a nice surprise... #
0:05:04 > 0:05:10It's so funny how your perceptions can change so quickly, isn't it?
0:05:10 > 0:05:13Downstairs, a real surprise. What have we got up here?
0:05:13 > 0:05:18Well, more new radiators, a new boiler. That's good to see.
0:05:18 > 0:05:24Bathroom suite. There's obviously been a major series of...um...
0:05:24 > 0:05:28well, things done, to get it into this state.
0:05:28 > 0:05:32We've got double-glazed windows, nice new ones of those.
0:05:32 > 0:05:35Three bedrooms, a decent-sized one there.
0:05:35 > 0:05:37A really decent-sized one here.
0:05:37 > 0:05:40And then into this, which is your third bedroom.
0:05:40 > 0:05:44I guess it's your master. It's a really good size.
0:05:44 > 0:05:49Even got some storage space there. What can I say?
0:05:50 > 0:05:57Fantastic. And don't forget that guide price. £48,000 plus. Whoa!
0:05:57 > 0:06:02This place looks like the after in a Homes Under The Hammer renovation.
0:06:02 > 0:06:06Almost every job you would expect to be done has been.
0:06:06 > 0:06:08Mind you, I'm not sure about the way some of the work
0:06:08 > 0:06:09has been finished off.
0:06:12 > 0:06:15It seems like the electrical work...
0:06:15 > 0:06:16Obviously there's been a rewire,
0:06:16 > 0:06:20but they've put the cables in trunking.
0:06:20 > 0:06:23And same for the pipes for the central heating.
0:06:23 > 0:06:25Again, plastic trunking.
0:06:25 > 0:06:30Look, it's over here as well. That looks rubbish, doesn't it?
0:06:32 > 0:06:34I have to investigate further now.
0:06:36 > 0:06:40It's like it in here too. It's funny, isn't it?
0:06:40 > 0:06:41I didn't notice this at first,
0:06:41 > 0:06:45but the moment you do notice it, it really starts to bug you.
0:06:47 > 0:06:53# Why did you do it? Why did you do that thing to me? #
0:06:53 > 0:06:56It's not causing any problems with the property,
0:06:56 > 0:06:59but it's certainly an opportunity missed.
0:06:59 > 0:07:01A nice finish can really make a difference.
0:07:01 > 0:07:04But let's face it, it could have been a lot worse.
0:07:04 > 0:07:08This is guided at £48,000 plus, remember.
0:07:08 > 0:07:10Does a local agent think there's much more needed
0:07:10 > 0:07:13in terms of spend on this?
0:07:13 > 0:07:16Generally, it needs to be decorated, it needs to be having some sort of
0:07:16 > 0:07:20small furnishings like curtains, things like that.
0:07:20 > 0:07:23But not a lot at all. I think sort of £5,000 to £10,000,
0:07:23 > 0:07:26and you could get the property up to a good scratch.
0:07:26 > 0:07:30A small outlay could maximise profit. Let's talk figures.
0:07:31 > 0:07:35This property in this location is very popular for rental.
0:07:35 > 0:07:41You could look at up to £550 to £575 per calendar month.
0:07:41 > 0:07:44I think this property, when it's done up to a good standard,
0:07:44 > 0:07:46would be worth £100,000.
0:07:47 > 0:07:51So a rare find on Homes Under The Hammer, a house that is
0:07:51 > 0:07:55actually better on the inside than it looks from the outside.
0:07:55 > 0:08:00Hmm, let's see who spotted it when it went under the hammer.
0:08:00 > 0:08:03Semi-detached house, situated in a corner plot.
0:08:03 > 0:08:06Starting us somewhere near £48,000. Can we see £45,000?
0:08:06 > 0:08:09Make it £40,000, then, if you like. Thank you.
0:08:09 > 0:08:15£40,000, I've got you there. £41,000 seated? £41,000. 42? 43? 44? 45? 46?
0:08:15 > 0:08:2047? 47? 48? 49? 49, and 50.
0:08:20 > 0:08:23- 51...- With a fast and furious start,
0:08:23 > 0:08:27we leave the bidding and rejoin at £68,000.
0:08:27 > 0:08:30..69 no. At £68,000, then, with you.
0:08:30 > 0:08:33At £68,000, then, for the first time,
0:08:33 > 0:08:38£68,000 for the second time, £69,000. 69, round up to 70.
0:08:38 > 0:08:4371 now. 71. 72, 73, 74, 74...
0:08:43 > 0:08:4675, no. At £74,000 here.
0:08:46 > 0:08:51At £74,000, then, for the first time, second time...
0:08:51 > 0:08:53Third and last time at £74,000...
0:08:53 > 0:08:57- BANGS HAMMER - Yours...well done...to number 40. Thank you very much.
0:08:58 > 0:09:04And so, for £74,000 - £26,000 over the guide price -
0:09:04 > 0:09:07the successful bidder is Andy.
0:09:07 > 0:09:10Andy already has a small portfolio of properties in the area,
0:09:10 > 0:09:13but this purchase was much closer to home
0:09:13 > 0:09:17as he and his mother-in-law, Sue, explain.
0:09:17 > 0:09:19- Andy, Susan, great to meet you both.- Nice to meet you.
0:09:19 > 0:09:22- Nice to meet you.- Congratulations.
0:09:22 > 0:09:25Tell me why you wanted to buy the house.
0:09:25 > 0:09:30Well, I'd obviously seen the house has been empty for a while.
0:09:30 > 0:09:32What do you mean, "obviously" seen it?
0:09:32 > 0:09:36- Well, Mother-in-law lives next door. - Sorry, you live next door?- Yeah.
0:09:36 > 0:09:38- HE LAUGHS - How amazing.
0:09:38 > 0:09:39So why did you want to buy it,
0:09:39 > 0:09:42other than the fact it's next door to your mum-in-law?
0:09:42 > 0:09:44We noticed the property has been empty for a long time.
0:09:44 > 0:09:46It's been empty for about 12 years now.
0:09:46 > 0:09:49And because it's been empty and derelict,
0:09:49 > 0:09:51there have been numerous problems next door
0:09:51 > 0:09:54with damp, and I think various other problems as well over the years.
0:09:54 > 0:09:58- Yes, yes. We had children coming in...- Vandalism and stuff?
0:09:58 > 0:10:01..windows smashed. Then we had squatters.
0:10:01 > 0:10:06And then we had a fire where we had to get out, we were evacuated.
0:10:06 > 0:10:08And a lot of trouble.
0:10:08 > 0:10:12So there came a time that I was afraid to go out the door,
0:10:12 > 0:10:14because my husband's disabled.
0:10:14 > 0:10:18I was afraid to leave my house empty for a certain length of time,
0:10:18 > 0:10:21cos you just didn't know what was going to happen in this house.
0:10:21 > 0:10:24- Oh, that's horrendous. - You know? It was.
0:10:24 > 0:10:27- Knight in shining armour here, then?- Exactly, yeah.
0:10:27 > 0:10:31Did you do it just for that reason? To help out Mum-in-law?
0:10:31 > 0:10:33Well, this obviously had a particular interest
0:10:33 > 0:10:36because of the issues it's causing next door.
0:10:36 > 0:10:38We'd already been to see the owner
0:10:38 > 0:10:42and made an offer on the property which was refused at the time.
0:10:42 > 0:10:44So over the last few years, it is
0:10:44 > 0:10:47an ideal property that we'd want to buy anyway.
0:10:47 > 0:10:50In fact, this house was the subject of a compulsory purchase order
0:10:50 > 0:10:52by the council in the end.
0:10:52 > 0:10:56It's them who have restored the property to this stage.
0:10:56 > 0:11:00Andy, who runs a financial services company, has not just bought
0:11:00 > 0:11:03a sound house for his portfolio of 10 properties,
0:11:03 > 0:11:07he's bought his mother and father-in-law peace of mind.
0:11:07 > 0:11:09And you can't put a price on that.
0:11:09 > 0:11:13So, tell me what you're going to do to finish it off?
0:11:13 > 0:11:16- Well, as little as possible on the inside.- Right.
0:11:16 > 0:11:18We're just going to add a few units in the kitchen
0:11:18 > 0:11:20and just bring it round, obviously flooring, decor.
0:11:20 > 0:11:23A couple of issues we've got, the chimney on the roof
0:11:23 > 0:11:25really needs to come down.
0:11:25 > 0:11:27There's a few tiles missing and a couple of leaks.
0:11:27 > 0:11:29So the first thing is to get the roof put right.
0:11:29 > 0:11:32And of course, the largest part really is going to be on the outside.
0:11:32 > 0:11:35- We'll have insulation on the outside of the walls.- OK.
0:11:35 > 0:11:37And it's the garden.
0:11:37 > 0:11:40We don't know really what surprises that holds for us.
0:11:40 > 0:11:42Slightly concerned around the back that there may be roots
0:11:42 > 0:11:45under the property. When that's cleared,
0:11:45 > 0:11:46we've really got to assess it then.
0:11:46 > 0:11:49But of course it's really going to be, clear the gardens,
0:11:49 > 0:11:51get some decking in, get new paths, get the fencing done.
0:11:51 > 0:11:53That's probably going to take most of the budget.
0:11:53 > 0:11:55So what's the budget for sorting it out then?
0:11:55 > 0:11:59- Well, I've given it an initial cost of £10,000.- And timescale?
0:11:59 > 0:12:03- Timescale, eight weeks. - And then what's the plan for it?
0:12:03 > 0:12:05I think now we've got an opportunity to get in some neighbours,
0:12:05 > 0:12:08we just want to make sure they're the right neighbours.
0:12:08 > 0:12:11- And we've got the ideal person to keep an eye on things.- Well, exactly.
0:12:11 > 0:12:16- And are you going to check out the potential renters?- I might do.
0:12:18 > 0:12:22I think you absolutely should. Well, fantastic. Great.
0:12:22 > 0:12:25I'm delighted for both of you. Good luck with it.
0:12:25 > 0:12:28And we look forward to seeing how you get on.
0:12:28 > 0:12:30- Thank you very much.- Thank you.
0:12:30 > 0:12:35Well, it couldn't be a more perfect purchase, could it?
0:12:35 > 0:12:39Finally buying the house next door for your mum-in-law.
0:12:39 > 0:12:42And also making I think a good investment decision
0:12:42 > 0:12:47at the same time. How will Andy get on sorting this out?
0:12:47 > 0:12:51And how will Susan get on vetting the new neighbours?
0:12:51 > 0:12:54You can find out later in the show.
0:12:59 > 0:13:02Well, from one castle town to another, this time
0:13:02 > 0:13:06Rochester in Kent, a favourite with Charles Dickens, no less.
0:13:06 > 0:13:10But will the story be one of Great Expectations or Bleak House
0:13:10 > 0:13:14when it comes to today's auction lot in this pretty Victorian terrace?
0:13:17 > 0:13:21With its close proximity to the station and location just off
0:13:21 > 0:13:26the high street, this two-bedroom terrace I'm here to see is certainly
0:13:26 > 0:13:28in a convenient spot.
0:13:28 > 0:13:33And look at this wonderful, charming old church here. It is lovely.
0:13:33 > 0:13:37Now, this place had a guide price of £95,000 to £100,000.
0:13:37 > 0:13:38Time to head inside.
0:13:40 > 0:13:45So, just when you think you've seen it all, another terraced house?
0:13:45 > 0:13:48Oh, no. Look at this. It's incredible.
0:13:48 > 0:13:51You've got stunning period features there,
0:13:51 > 0:13:55and whoosh, a furry lion right here. Rrrr.
0:13:55 > 0:13:59That is not what I was expecting to see in this terrace house.
0:14:00 > 0:14:03You've got to come in here. You got to follow me in.
0:14:03 > 0:14:08This is a first for me on Homes Under The Hammer. Ta-da!
0:14:08 > 0:14:09Isn't this incredible?
0:14:09 > 0:14:13Postcards, Christmas cards, birthday cards, posters.
0:14:13 > 0:14:18It's all going on in this room. Blues, purples. But look at this.
0:14:18 > 0:14:22Then you have this absolutely stunning fireplace.
0:14:22 > 0:14:26I mean, look at the detail here. Wow.
0:14:26 > 0:14:29This house is not what I was expecting.
0:14:29 > 0:14:33Will it carry on in the same vein? I can't wait to find out.
0:14:36 > 0:14:39Ditching the distinctive decor may be a top priority,
0:14:39 > 0:14:44but I think the original sash windows may need a bit of TLC too.
0:14:44 > 0:14:47The purple on the hall walls, mmmm, it does make it feel small,
0:14:47 > 0:14:51and the dining room in the middle could also do with brightening up.
0:14:51 > 0:14:54And that fireplace, should it stay, should it go?
0:14:57 > 0:15:00There is a kitchen at the back. Ooh, look at this.
0:15:01 > 0:15:03Now, that is incredible.
0:15:03 > 0:15:07Down there, come and have a look, you've got a huge cellar.
0:15:07 > 0:15:11And it looks dry, so that is a real plus point for storage space.
0:15:11 > 0:15:15I was about to say it all calms down at the back here in the kitchen,
0:15:15 > 0:15:17but no, still got red walls!
0:15:17 > 0:15:21It's disappointingly small, I think, for a family house.
0:15:21 > 0:15:24I mean, you've still got these really nice little features.
0:15:24 > 0:15:27If you look beyond the paint you've got lovely doors.
0:15:27 > 0:15:29There's so much beauty in this place.
0:15:29 > 0:15:31But I would find this too small.
0:15:31 > 0:15:34I'd also like to think about knocking through this wall.
0:15:34 > 0:15:38But it is load-bearing, it's about that thick. I'm just wondering
0:15:38 > 0:15:42if there's any way we could extend this kitchen that way, or that way.
0:15:42 > 0:15:45Let's go and explore the garden.
0:15:47 > 0:15:50Well, I'm happy to say there's lots of space out here.
0:15:50 > 0:15:55And I have noticed that other people in the road have extended this way.
0:15:55 > 0:15:58So you could easily go out here with the kitchen,
0:15:58 > 0:16:02get rid of this outside loo, which is just being used for storage,
0:16:02 > 0:16:05and that would really improve the space.
0:16:05 > 0:16:07But I think the nicest thing about coming out here,
0:16:07 > 0:16:11it's got a sense of history, this garden. It really is beautiful.
0:16:11 > 0:16:13It's like a walled garden.
0:16:13 > 0:16:17You've got this beautiful aged brickwork going on along here.
0:16:17 > 0:16:19I don't know if you can see this,
0:16:19 > 0:16:22but there's this little castle turret over there.
0:16:22 > 0:16:25You are hemmed in by the wonderful church, which is
0:16:25 > 0:16:29just outside the front. It really is quite special.
0:16:29 > 0:16:31After all, I suppose this is historical Rochester.
0:16:34 > 0:16:36Back inside and upstairs,
0:16:36 > 0:16:39things are looking a bit dated in the decor department.
0:16:39 > 0:16:43But the two bedrooms are a decent size, and more fireplaces.
0:16:43 > 0:16:45Hurrah, lovely ones.
0:16:45 > 0:16:47Even the bathroom has a fireplace,
0:16:47 > 0:16:50but that's because it probably used to be a bedroom,
0:16:50 > 0:16:52so that poses a quandary.
0:16:52 > 0:16:56Do you move the bathroom back downstairs where it used to be,
0:16:56 > 0:16:57and create a three-bedder?
0:17:01 > 0:17:04We asked along a local estate agent to get his thoughts on this place.
0:17:06 > 0:17:10I would go towards moving the bathroom, if you could, downstairs,
0:17:10 > 0:17:13and maybe a small extension at the back of the kitchen,
0:17:13 > 0:17:17and thereby creating three separate bedrooms upstairs,
0:17:17 > 0:17:21which would then move you up a bracket in terms of the property,
0:17:21 > 0:17:24and increase its appeal if you were selling or renting.
0:17:25 > 0:17:30OK, and bearing in mind the £95,000 to £100,000 guide price,
0:17:30 > 0:17:34what might the re-jigged mid-terrace fetch on the resale market?
0:17:34 > 0:17:38If you were to create a three-bedroom property here, I think
0:17:38 > 0:17:42you could achieve a price in excess of £135,000.
0:17:42 > 0:17:44And on the rental market?
0:17:45 > 0:17:49If this property were renovated as a three-bedroom property, I think
0:17:49 > 0:17:54you could achieve a figure of around £850 per calendar month.
0:17:55 > 0:17:58This property is not quite picture-perfect,
0:17:58 > 0:18:02but it's unique, there don't seem to be any structural issues,
0:18:02 > 0:18:05and it really is lovely to find period features such as those
0:18:05 > 0:18:11old fireplaces still left intact. And look, what an amazing location!
0:18:11 > 0:18:14Let's see what happened when it went under the hammer.
0:18:16 > 0:18:19Lot two is a house for improvement.
0:18:19 > 0:18:20It's part gas heating,
0:18:20 > 0:18:22two bedrooms and bathroom on the first floor.
0:18:22 > 0:18:27Can I start at £90,000 somewhere? £90,000 bid I've got.
0:18:27 > 0:18:33And two, at 92, 92. 95, 95, 95, 97.
0:18:33 > 0:18:35At £97,000, and 100.
0:18:35 > 0:18:38And two. 102.
0:18:38 > 0:18:43104, 106, 108, 110, and 12.
0:18:43 > 0:18:47At 12, at 12. And 14 and 16.
0:18:47 > 0:18:51At 16, at 16, at 18, and 20.
0:18:51 > 0:18:55At 20, at 20, and two, 24.
0:18:55 > 0:18:5924, 26, 28. £128,000.
0:18:59 > 0:19:03And 30. 127, you've been with it a long time.
0:19:03 > 0:19:08No? £128,000 I've got. £130,000 I'm looking for. 130, do I see it?
0:19:08 > 0:19:09Are you out of it?
0:19:09 > 0:19:14Yep. At £128,000 at the back of the room, £130,000 I'm bid.
0:19:14 > 0:19:18130 on my left-hand side. £132,000, it's against you, madam.
0:19:18 > 0:19:23At 130 on my left, £132,000 I'm looking for. £132,000 I'm bid.
0:19:23 > 0:19:27£134,000, now it's against you. £134,000, can I say?
0:19:27 > 0:19:30At £132,000 in the back row, been there a long time.
0:19:30 > 0:19:33For the first time, then, at £132,000...
0:19:33 > 0:19:38Second time at £132,000... Third and final time, all done at £132,000.
0:19:38 > 0:19:41- All done? - BANGS HAMMER
0:19:41 > 0:19:43Back row, and the number is G481.
0:19:46 > 0:19:51And that successful bid of £132,000, well over the guide price,
0:19:51 > 0:19:53was placed by Sasha,
0:19:53 > 0:19:56who attended the auction with her husband, Marino.
0:19:56 > 0:19:59Now, Sasha and Marino both have Italian roots,
0:19:59 > 0:20:04and they met when Sasha was working in an Italian ristorante.
0:20:04 > 0:20:07I met the couple back at la casa to see what was on the menu.
0:20:10 > 0:20:14- Sasha and Marino, lovely to meet you both.- Thank you.
0:20:14 > 0:20:17So what happened on auction day? How much did you intend to spend?
0:20:17 > 0:20:20Well, my budget line was about £125,000,
0:20:20 > 0:20:23but unfortunately it went past that before we even started bidding.
0:20:23 > 0:20:25So I said, "We have got to have the house.
0:20:25 > 0:20:27"Let's go a little bit more, it doesn't matter.
0:20:27 > 0:20:28"£10,000 here or there doesn't matter.
0:20:28 > 0:20:31- "We've got to get it," you know? - He got more excited than you.
0:20:31 > 0:20:35Well, he was. I was surprised because I knew the limit.
0:20:35 > 0:20:39I was really nervous. It was the first time. He said, "No, continue."
0:20:39 > 0:20:42And when the lady came when we got the house,
0:20:42 > 0:20:45the lady came and said, "You are the one who is buying?"
0:20:45 > 0:20:50And I said, "I am, but he's paying." She was a bit surprised!
0:20:50 > 0:20:54- What was it that attracted you, Marino?- The original features.
0:20:54 > 0:20:58The fireplaces, the house being untouched for many years.
0:20:58 > 0:21:01It's amazing, I mean this building has got so much going for it.
0:21:01 > 0:21:04- The character, I mean it's oozing out.- Yes.
0:21:04 > 0:21:07But practically, it doesn't work terribly well.
0:21:07 > 0:21:10So what are you going to do to turn that around,
0:21:10 > 0:21:13- and to make it everyday living? - Everyday living, I think we are
0:21:13 > 0:21:16going to convert the room we're in at the moment into a kitchen,
0:21:16 > 0:21:21possibly move the bathroom upstairs, down to the back room here.
0:21:21 > 0:21:24And to turn it into a three-bedroom.
0:21:24 > 0:21:28And basically do all the necessary plasterwork,
0:21:28 > 0:21:31and get it all tidied up.
0:21:31 > 0:21:35So three beds is the plan? Well, that certainly is an option.
0:21:35 > 0:21:38But Marino and Sasha did pay well over the guide price
0:21:38 > 0:21:41at the auction, so they'll have to watch the purse strings.
0:21:43 > 0:21:47Sasha has a degree in fine arts and works as a decorative artist,
0:21:47 > 0:21:50and Marino is a full-time property developer.
0:21:50 > 0:21:54But this is the first project the couple have taken on together.
0:21:55 > 0:21:58- So you're already a property landlord, Marino?- I am, yes.
0:21:58 > 0:22:00So you've managed to talk Sasha into coming on board?
0:22:00 > 0:22:03Yeah, I'm trying to take her on board and show her what I know
0:22:03 > 0:22:06in my experience through the years of what I've done, you know?
0:22:06 > 0:22:12- So hopefully this is the first of many.- And it's quite interesting
0:22:12 > 0:22:14- because you want to put your fine art degree to good use.- Yes, I do.
0:22:14 > 0:22:16So how will you do that in this property?
0:22:16 > 0:22:20Well, what I really love in this house are the fireplaces.
0:22:20 > 0:22:23So we're probably going to bring back the original colour
0:22:23 > 0:22:27and shine back a little bit more, and maybe the doors.
0:22:27 > 0:22:30I'm not quite sure yet because I don't want to overdo it too much.
0:22:30 > 0:22:32So how will you put that art degree to good use?
0:22:32 > 0:22:34Are we going to see a beautiful painting on the wall?
0:22:34 > 0:22:37Probably a little bit. Not too big, but, yes, probably something.
0:22:37 > 0:22:39- Something there.- Yes.
0:22:40 > 0:22:42It took Michelangelo over four years to paint
0:22:42 > 0:22:44the ceiling of the Sistine Chapel,
0:22:44 > 0:22:48but Sasha and Marino plan to turn the mid-terrace round
0:22:48 > 0:22:52in three months, and on a budget of just £10,000.
0:22:52 > 0:22:56- Honestly, do you think you can stick to that budget?- I'm hoping I can.
0:22:56 > 0:22:58We're going to do a lot of work ourselves,
0:22:58 > 0:23:00to save a bit of money.
0:23:00 > 0:23:03But we've got to get professionals in to do the kitchen and bathroom.
0:23:03 > 0:23:05But, yeah, I think we can manage it.
0:23:05 > 0:23:07- So this is your first project together?- Yes.
0:23:07 > 0:23:09How do you think it's going to go?
0:23:09 > 0:23:12Cos obviously you fell in love over meatballs and spaghetti.
0:23:12 > 0:23:14Yes, we did!
0:23:14 > 0:23:16How do you think this is going to be, you two working together?
0:23:16 > 0:23:20- I think it's going to be fantastic. - Brilliant.- It's fun. I'm excited.
0:23:20 > 0:23:24- And was it meatballs and spaghetti? - It was!- Was it?- Yes!
0:23:26 > 0:23:30- So yeah, I'm happy.- And do you both agree on the same thing?
0:23:30 > 0:23:37- Most of the time, yes. - Otherwise, I win. He gives in!
0:23:37 > 0:23:38But no, I'm sure it will be fine.
0:23:38 > 0:23:41Guys, it's been such a pleasure meeting you both today.
0:23:41 > 0:23:44I really hope you manage to squeeze some profit out of this
0:23:44 > 0:23:49somewhere along the line. Don't overspend. Good luck. Thank you.
0:23:49 > 0:23:51- Marino, nice to meet you.- Thank you. - Sasha, thank you.- Thank you.
0:23:53 > 0:23:56Wow, we are certainly going to see some creative flair in this
0:23:56 > 0:24:00property, and I cannot wait to see Sasha's painting.
0:24:00 > 0:24:04However, it's not all about the design and decor.
0:24:04 > 0:24:07The couple need to keep a close eye on that budget as well.
0:24:07 > 0:24:09Will they earn enough for Sasha to continue onto her next
0:24:09 > 0:24:11property venture?
0:24:11 > 0:24:13You can join me later on in the programme to find out.
0:24:16 > 0:24:20Coming up: This Derbyshire house isn't exactly oozing curb appeal.
0:24:21 > 0:24:24So entering with slight trepidation...
0:24:26 > 0:24:30Back in Kent, we see what Sasha and Marino make of property developing.
0:24:30 > 0:24:33A bit stressful! But we're pleased with the result.
0:24:33 > 0:24:37- Oh, yeah, I'm pleased with the results, yeah.- Happy.
0:24:39 > 0:24:41But first, we return to the Welsh town of Caerphilly.
0:24:41 > 0:24:45And it was here that we met property developer Andy
0:24:45 > 0:24:46and his mother-in-law, Sue.
0:24:48 > 0:24:52Andy bought this three-bed semi for £74,000.
0:24:52 > 0:24:55But this was no ordinary property deal.
0:24:55 > 0:24:59Andy was being a knight in shining armour for his parents-in-law,
0:24:59 > 0:25:01who live next door to the house, which had been
0:25:01 > 0:25:04a source of real worry for them.
0:25:04 > 0:25:07It's been empty for about 12 years now.
0:25:07 > 0:25:10And because it's been empty and derelict,
0:25:10 > 0:25:12there have been numerous problems next door, with damp,
0:25:12 > 0:25:16- and I think various other problems as well over the years.- Yes, yes.
0:25:16 > 0:25:21- We had children coming in.- Vandalism and stuff?- Windows smashed.
0:25:21 > 0:25:27Then we had squatters, and then we had a fire, and a lot of trouble.
0:25:27 > 0:25:30So there came a time when I was afraid to go out the door.
0:25:30 > 0:25:32My husband's disabled.
0:25:32 > 0:25:36I was afraid to leave my house empty for a certain length of time,
0:25:36 > 0:25:39cos you just didn't know what was going to happen in this house.
0:25:39 > 0:25:41Oh, that's horrendous.
0:25:41 > 0:25:43The house was in a good state internally
0:25:43 > 0:25:46because the council had renovated it.
0:25:46 > 0:25:49Now Andy had bought it, things were on the up.
0:25:49 > 0:25:52Indeed, there was really just cosmetic work to do.
0:25:52 > 0:25:55So, three months later we are back to see if Sue and Andy
0:25:55 > 0:25:57have got new neighbours.
0:26:13 > 0:26:17Finally the house looks as good on the outside
0:26:17 > 0:26:18as it does on the inside.
0:26:33 > 0:26:36The whole house looks clean and fresh
0:26:36 > 0:26:39and ready for a new neighbour to move straight into.
0:26:41 > 0:26:46Andy was fortunate in that a lot of the basic work had been done.
0:26:46 > 0:26:49So what did he see as his priorities?
0:26:49 > 0:26:52The kitchen and bathroom was already there.
0:26:52 > 0:26:57We needed to tile the bathroom, put a screen in and do the floors.
0:26:57 > 0:26:59The kitchen we extended,
0:26:59 > 0:27:01but apart from that, the essential elements are still there.
0:27:01 > 0:27:07We've just really done the cosmetics and put in the finishing touches.
0:27:07 > 0:27:10The house came with key features like a new boiler,
0:27:10 > 0:27:15bathroom suite and new radiators. But there were some negatives.
0:27:15 > 0:27:20The rewiring and plumbing had rather inelegantly been put in trunking,
0:27:20 > 0:27:22and there was no downstairs toilet.
0:27:22 > 0:27:28And all of this still remain the same. So why's that?
0:27:28 > 0:27:31We decided not to pull that out,
0:27:31 > 0:27:34purely because economically it wasn't worth it.
0:27:34 > 0:27:38Andy then has changed the interior with his investor's hat on
0:27:38 > 0:27:42and concentrated on doing the jobs that had to be done.
0:27:42 > 0:27:45And top of that list was the jungle of a garden.
0:27:45 > 0:27:48And Andy's team have transformed this space.
0:27:48 > 0:27:51Andy also took advantage of a government scheme to add
0:27:51 > 0:27:54a layer of concrete insulation around the property,
0:27:54 > 0:27:57which has improved the rendering dramatically.
0:27:59 > 0:28:02This was an unusual house in that the outside was worse
0:28:02 > 0:28:05than the inside, so it isn't surprising that this is where Andy
0:28:05 > 0:28:08faced the biggest challenges.
0:28:08 > 0:28:11Well, there's been enormous changes out here.
0:28:11 > 0:28:14This was the biggest issue that we've had, was the garden,
0:28:14 > 0:28:18because it's been overgrown for 10, 12 years now.
0:28:18 > 0:28:22We've had tree roots over here, grown on to the paving,
0:28:22 > 0:28:24which had ripped it all up.
0:28:24 > 0:28:28We had tree roots in the corner which was causing problems there.
0:28:28 > 0:28:30So we just had it ripped out.
0:28:30 > 0:28:33We've had it all topsoiled there, a fence put in. Re-turfed.
0:28:33 > 0:28:36And then around here we've had all decking put in.
0:28:36 > 0:28:38It's been really nice to come back and see the outside,
0:28:38 > 0:28:42and what it was then and how it is three months later there.
0:28:42 > 0:28:44And there's been an awful lot of people just coming up
0:28:44 > 0:28:47to have a look, because they've just been used to this bomb site
0:28:47 > 0:28:49for the last 10 years.
0:28:50 > 0:28:54So, a decade worth of disuse has been swept away in just 10 weeks,
0:28:54 > 0:28:57well within Andy's timescale.
0:28:57 > 0:29:01The budget was £10,000. What did he spend?
0:29:01 > 0:29:06£11,000 is what we've ended up on. And that was...
0:29:06 > 0:29:11Well, we always suspected there'd be a few extra bits to add on there.
0:29:11 > 0:29:12And people say it's an extra 10%
0:29:12 > 0:29:14and that's exactly what it is come in at.
0:29:14 > 0:29:15A slight overspend,
0:29:15 > 0:29:18but you can't put a price on getting peace of mind.
0:29:18 > 0:29:21So, is mother-in-law Sue happier now?
0:29:25 > 0:29:29It was just nice hearing voices and seeing a light on in here.
0:29:29 > 0:29:32And he had the radio on while he was working.
0:29:32 > 0:29:36It was lovely to know that somebody was here. You feel safer.
0:29:37 > 0:29:40Andy has already secured a tenant,
0:29:40 > 0:29:44and I suspect that is because Sue is the perfect local letting agent.
0:29:45 > 0:29:52I know a lot of people around here, and they knew this house was going.
0:29:52 > 0:29:59So they inboxed me on the tablet, and I knew nearly all of them
0:29:59 > 0:30:02that asked, and that's how we decided.
0:30:04 > 0:30:08Well, from one local lettings whizz to two local property experts,
0:30:08 > 0:30:11what will they make of this three-bed end terrace?
0:30:12 > 0:30:16It's been modernised and renovated to a good standard.
0:30:16 > 0:30:18It offers good space throughout,
0:30:18 > 0:30:23- and a very nice property in general, really.- I like the property.
0:30:23 > 0:30:28It's of good size and proportion. It's been decorated to a standard
0:30:28 > 0:30:31of white emulsion throughout,
0:30:31 > 0:30:35laminate flooring and standard carpeting.
0:30:35 > 0:30:38Andy bought it at auction for £74,000
0:30:38 > 0:30:44and spent £11,000 on renovation, giving a total spend of £85,000.
0:30:44 > 0:30:46Could Andy recoup that if he sold on?
0:30:48 > 0:30:52I would expect to achieve between £95,000 and £100,000.
0:30:52 > 0:30:56I would expect it to achieve in the region of £100,000 to £110,000.
0:30:58 > 0:31:04A top valuation of £110,000 would give Andy a £25,000 pre-tax profit.
0:31:04 > 0:31:06What does he make of those valuations?
0:31:08 > 0:31:12It's slightly more than I expected. I did expect the mid-90s to late 90s.
0:31:12 > 0:31:15£100,000 to £110,000? That's quite impressive.
0:31:15 > 0:31:18- It's better than I thought it would be.- Here come the crucial numbers.
0:31:18 > 0:31:21Andy has always planned to rent,
0:31:21 > 0:31:24so what could he make on the lettings market?
0:31:26 > 0:31:29I would expect this property to achieve in the region of £500
0:31:29 > 0:31:31per calendar month.
0:31:31 > 0:31:34On the rental market, I would expect to achieve between £500
0:31:34 > 0:31:37per calendar month to £550 per calendar month.
0:31:37 > 0:31:42An average of £500 per calendar month would give Andy a 7% yield.
0:31:42 > 0:31:45Is that in line with what he got from the new tenant?
0:31:48 > 0:31:52Again, very good. Expectations exactly what I expected them to be.
0:31:52 > 0:31:56We have rented it out for £500 a month. So that's bang on the money.
0:31:57 > 0:32:00After a decade of dingy dereliction next door,
0:32:00 > 0:32:05the son-in-law must be top of Sue's Christmas card list.
0:32:05 > 0:32:10He's my only son-in-law. But my favourite one, yes. Lovely.
0:32:10 > 0:32:11Smashing.
0:32:14 > 0:32:17Well, after a tale of the house next door,
0:32:17 > 0:32:20we move from Wales to neighbouring England.
0:32:20 > 0:32:23Nestling at the southern edge of Derbyshire is the beautiful
0:32:23 > 0:32:25county town of Matlock.
0:32:25 > 0:32:30Discovery of thermal springs in around 1698 brought about
0:32:30 > 0:32:34the creation of a spa, and Matlock Bath to the south of the town.
0:32:37 > 0:32:40A picturesque and historical part of the country, Matlock
0:32:40 > 0:32:44brings in the tourists and is a sought-after area in which to live.
0:32:45 > 0:32:48Well, a mile from the centre of Matlock
0:32:48 > 0:32:51and three miles from Matlock Bath is the property I'm here to see.
0:32:51 > 0:32:54It is in this fantastic elevated position,
0:32:54 > 0:32:58so you've got wonderful views over the surrounding countryside.
0:32:58 > 0:33:04The house itself though? Well, from the outside it's a little bit tired.
0:33:04 > 0:33:08Two bedrooms, semi-detached, had a guide price of £65,000 plus.
0:33:08 > 0:33:11Let's venture inward.
0:33:13 > 0:33:16Hmm. Yes, the outside doesn't bode well.
0:33:16 > 0:33:18You can already see there's a fair amount of window work
0:33:18 > 0:33:20needing to be done.
0:33:20 > 0:33:23It's like this place hasn't been touched since it was built.
0:33:26 > 0:33:29So entering with slight trepidation,
0:33:29 > 0:33:33given that it does look like it's in a bit of a state from the outside.
0:33:33 > 0:33:36What have we got? Quite an interesting design, actually,
0:33:36 > 0:33:38into this little sort of entrance area here.
0:33:38 > 0:33:39Your kitchen facing you there,
0:33:39 > 0:33:43stairs up to the bedrooms, and then over this way into the lounge.
0:33:43 > 0:33:46Nice big windows.
0:33:46 > 0:33:49And not dual aspect, as in there's no window at that end.
0:33:49 > 0:33:54But it's a good size. Central focal point there, the fireplace.
0:33:54 > 0:33:57An open fire. I think with a modern sort of fire surround on there,
0:33:57 > 0:34:00that would be a really lovely feature in this room.
0:34:00 > 0:34:03And then this is one of those houses that I really like,
0:34:03 > 0:34:07where you can actually walk round the whole of the downstairs
0:34:07 > 0:34:10in one kind of circular movement, if you like,
0:34:10 > 0:34:14as you come through off the lounge there into the kitchen.
0:34:14 > 0:34:17And yes, it is in a state.
0:34:17 > 0:34:20I think if I pushed too hard on that window frame it would fall out.
0:34:20 > 0:34:23So yeah, new windows required, new doors required.
0:34:23 > 0:34:28Flooring, new kitchen. It's one of those total refurb jobs.
0:34:28 > 0:34:31But in terms of what you've actually got in terms of a layout,
0:34:31 > 0:34:34straightaway it just works.
0:34:34 > 0:34:40# In this lonesome old house
0:34:40 > 0:34:44# In this lonesome old house... #
0:34:44 > 0:34:47It's almost like a museum piece from the 1950s
0:34:47 > 0:34:50with its Bakelite switches, old wiring and electrics,
0:34:50 > 0:34:53and even an original Belfast sink in the kitchen.
0:34:54 > 0:34:58A door in the kitchen leads down into the old coal cellar,
0:34:58 > 0:35:01but it's upstairs I'm headed in this house that time forgot.
0:35:04 > 0:35:06So up here, and yes,
0:35:06 > 0:35:09it continues to be in need of a bit of tender loving care.
0:35:09 > 0:35:12But again, everything is where you'd hope it would be.
0:35:12 > 0:35:16Bathroom up here, it's not huge. Obviously in need of a new suite.
0:35:16 > 0:35:20But at least it's upstairs, which is good.
0:35:20 > 0:35:22And it's not a bad size in proportion to the house.
0:35:22 > 0:35:24The bedrooms, there are only two of them.
0:35:24 > 0:35:27One there at the back, and this one at the front.
0:35:27 > 0:35:30But again, really nice sizes.
0:35:30 > 0:35:34And I'd rather have these two decent-sized bedrooms than maybe
0:35:34 > 0:35:37three smaller ones. In-built storage.
0:35:37 > 0:35:40It's an ex-local authority house, the sort of thing you expect.
0:35:40 > 0:35:44It's solid, it does what it's supposed to, and I really like it.
0:35:44 > 0:35:48# I like it, I like it... #
0:35:48 > 0:35:52Yes, it's stuck in the 1950s and needs totally updating.
0:35:52 > 0:35:56But it seems structurally sound and has great proportions.
0:35:56 > 0:35:58What's not to like?
0:35:58 > 0:36:02Although I haven't seen the back garden yet...
0:36:03 > 0:36:05So at the back, what have we got?
0:36:05 > 0:36:09Well, at the moment, it's a bit of a jungle! As you can see.
0:36:09 > 0:36:10But a good-sized garden.
0:36:10 > 0:36:13It goes all the way back there, probably another...
0:36:13 > 0:36:16I don't know, 20, 30 feet from where I am. So that's nice.
0:36:16 > 0:36:18The big thing you also see
0:36:18 > 0:36:21when you come out of here is more of those beautiful views.
0:36:21 > 0:36:23Look out that way there.
0:36:23 > 0:36:26So I wonder how you could best utilise this space,
0:36:26 > 0:36:28to make the most of that.
0:36:28 > 0:36:31How about building some kind of decking here,
0:36:31 > 0:36:36or just a really nice flat lawn, and then some steps down this way?
0:36:37 > 0:36:41And at the same time, why don't you open up that living room?
0:36:41 > 0:36:43That's actually the back of the living room there,
0:36:43 > 0:36:45where those two little outbuildings are.
0:36:45 > 0:36:49Knock that through, put in a set of French doors, dig this out,
0:36:49 > 0:36:51some steps up to the decking.
0:36:51 > 0:36:55That would, I think, totally transform both the lounge -
0:36:55 > 0:36:57cos you'd have more light in there - and also the garden.
0:36:57 > 0:37:01Because suddenly it would be a really nice space to be.
0:37:02 > 0:37:04Well, I'm feeling inspired.
0:37:04 > 0:37:06Yes, it's dated and has a jungle for a garden.
0:37:06 > 0:37:09But at a guide price of just £65,000,
0:37:09 > 0:37:14I think this could be a cracking little property.
0:37:15 > 0:37:18Let's see what the auctioneer who sold it makes of it.
0:37:20 > 0:37:22I think the property is structurally sound.
0:37:22 > 0:37:26It's just a question of wholesale refitting and updating.
0:37:26 > 0:37:27So it's the whole range really
0:37:27 > 0:37:31of a refurbishment schedule that's required here.
0:37:31 > 0:37:33There's certainly a demand for this sort of property.
0:37:33 > 0:37:37I mean, just because of its condition, it will appeal to people
0:37:37 > 0:37:41who want to sort it out and either resell it or rent it.
0:37:41 > 0:37:42From a rental point of view,
0:37:42 > 0:37:44it would rent out very, very easily indeed.
0:37:46 > 0:37:49Music to every investor's years. Let's talk figures.
0:37:49 > 0:37:53I would say once renovated this has got a market value
0:37:53 > 0:37:57of probably between £105,000 and £110,000.
0:37:57 > 0:37:59Rental value of this property, once refurbished,
0:37:59 > 0:38:02would be in the order of £500 a calendar month.
0:38:03 > 0:38:07Well, you will be in one of two camps on this one.
0:38:07 > 0:38:11The A camp, who say, "I wouldn't touch that with a barge pole.
0:38:11 > 0:38:13"You couldn't possibly live there, it's a mess."
0:38:13 > 0:38:18Or, the B camp, which is the, "You know what, this is a classic
0:38:18 > 0:38:21"fantastic auction purchase that you can add value to,
0:38:21 > 0:38:24"and actually, intrinsically it's a great house."
0:38:24 > 0:38:26I hope you are in camp B, cos that's where I am.
0:38:26 > 0:38:29Let's see who bought it when it went under the hammer.
0:38:32 > 0:38:39Two-bedroom semi-detached house that needs a full scheme of renovation.
0:38:39 > 0:38:45£58,000 to start me? 58? 58, thank you in the centre. At £58,000.
0:38:45 > 0:38:4959, somewhere else? 58 is my starting bid, 59 I've got.
0:38:49 > 0:38:5159, at 60.
0:38:51 > 0:38:55At 60, 61, 62 is bid.
0:38:55 > 0:39:0062, 63, 64, 65, 66...
0:39:00 > 0:39:03With the lot generating plenty of interest,
0:39:03 > 0:39:06we rejoin it when the bidding reaches £79,000.
0:39:06 > 0:39:09..79, at 79...
0:39:09 > 0:39:11Against you on the telephone at £79,000.
0:39:11 > 0:39:15500, that's definite, is it?
0:39:15 > 0:39:19Well, sort of. I think you'll bid me again.
0:39:19 > 0:39:22OK, £79,750.
0:39:24 > 0:39:25£80,000.
0:39:28 > 0:39:32At £80,000... Once...
0:39:32 > 0:39:36250. £80,250.
0:39:36 > 0:39:37500?
0:39:39 > 0:39:43£80,250, that's the way you buy them, right in at the death.
0:39:43 > 0:39:47At £80,250, once, twice, third time...
0:39:47 > 0:39:51- BANGS HAMMER - Sold at 80 and a quarter. Thank you.
0:39:51 > 0:39:53# I've got the key I've got the secret
0:39:53 > 0:39:58# I've got the key to another way... #
0:39:58 > 0:40:01Nipping in at the death meant the winning bid has gone
0:40:01 > 0:40:05to Gary for £80,250.
0:40:05 > 0:40:08Gary runs a kitchen and bathroom fitting company
0:40:08 > 0:40:09with his brother, John.
0:40:09 > 0:40:11I met him to find out more.
0:40:13 > 0:40:16- Gary, good to meet you.- Good to meet you.- Congratulations.- Thank you.
0:40:16 > 0:40:21- You did one bid just then.- The last bid, yeah.- Wham. Is that a strategy?
0:40:21 > 0:40:23It is, yeah. I wait till the end,
0:40:23 > 0:40:25till everybody has exhausted themselves, and then I bid.
0:40:25 > 0:40:29- Tell me why you wanted to buy it.- I like the area. I like the property.
0:40:29 > 0:40:31I thought, it's only cosmetic I need to do to it.
0:40:31 > 0:40:34There is no structural work. So I'm quite happy to buy it.
0:40:34 > 0:40:36It's a nice design and layout, isn't it?
0:40:36 > 0:40:39Yeah, it's not bad at all, yeah. The rooms are quite spacious.
0:40:39 > 0:40:43The bathroom's not a bad size. It's all right for a rental.
0:40:43 > 0:40:45- Yeah, is that the plan then?- That's the plan, yeah, rent it out.
0:40:45 > 0:40:48- Is this something you do then? - I've done it before.
0:40:48 > 0:40:50We've worked on other people's properties.
0:40:50 > 0:40:52I've actually bought at auctions a couple of times,
0:40:52 > 0:40:54I've bought land before.
0:40:54 > 0:40:58So yeah, I just wanted a property in Derbyshire to add to the portfolio.
0:40:58 > 0:41:00- On your own?- No, with my brother. We work together.
0:41:00 > 0:41:01And he's not here today?
0:41:01 > 0:41:05He's not here today, no, because his wife has given birth,
0:41:05 > 0:41:08about a week early. So he's actually at home with the baby at the moment.
0:41:08 > 0:41:11- Oh, wow!- So he would have been here, yeah. He would have been here today.
0:41:11 > 0:41:14- We're pulling my father in to help out as well.- Oh, wow.- He's a joiner.
0:41:14 > 0:41:18And although he's retired, we'll get him in here working with us.
0:41:18 > 0:41:20So yeah, it'll be a bit of a family job.
0:41:21 > 0:41:24Gary sounds like he'll be keeping the family on their toes,
0:41:24 > 0:41:26so what is the plan?
0:41:26 > 0:41:30Total refurbishment, pretty much everything you see here will be gone.
0:41:30 > 0:41:33New doors, new bathroom, new kitchen. New fireplace.
0:41:33 > 0:41:36Just refurbish the place, yeah.
0:41:36 > 0:41:40And a bit of a good weekend with a strimmer and an axe in the garden?
0:41:40 > 0:41:43Yeah, I think the garden is one of the things I'm not
0:41:43 > 0:41:46too worried about, really.
0:41:46 > 0:41:50We'll get cracked on with that, get some strimmers down here
0:41:50 > 0:41:51- and we'll get cleared.- Right.
0:41:51 > 0:41:54So what's the budget for what you're going to do?
0:41:54 > 0:41:58We're looking to spend £10,000 to £12,000 on it. Hopefully £10,000.
0:41:58 > 0:42:02We've done our sums on it and we're looking to about £10,000,
0:42:02 > 0:42:06but obviously we're always looking to pay 20% over.
0:42:06 > 0:42:09- You just don't know what you're going to find.- For sure.
0:42:09 > 0:42:12But nothing, from your initial scout about, to worry about?
0:42:12 > 0:42:15No. Nothing major. I've had a good measure up.
0:42:15 > 0:42:19I'll put in central heating myself. My brother does electrics.
0:42:19 > 0:42:21So we've only got to probably have somebody in
0:42:21 > 0:42:24for the plastering work. I don't do plastering,
0:42:24 > 0:42:27- so that's all we have got to pay for. - So do you enjoy doing this then?
0:42:27 > 0:42:29- I do. I really enjoy my job. - Is it a full-time job?
0:42:29 > 0:42:31It is now, yeah. Yeah.
0:42:31 > 0:42:34I work for other people during the week, but this,
0:42:34 > 0:42:37for the next 10 to 12 weeks, will be the main job, working on this.
0:42:37 > 0:42:40- Well, congratulations. Good luck with it.- Thank you very much.
0:42:40 > 0:42:44- We look forward to seeing how you get on.- Thank you.
0:42:44 > 0:42:47Well, I think Gary has got himself a great project here.
0:42:47 > 0:42:50Yes, I really do like this house and can't wait to see how it turns out.
0:42:50 > 0:42:54Although how much help he's going to get from his brother with that
0:42:54 > 0:42:57new baby, I'm not too sure.
0:42:57 > 0:43:00You can find out how it all turns out later in the show.
0:43:03 > 0:43:07We've seen what one of our buyers did after buying at auction.
0:43:07 > 0:43:09Let's see what happened to the others.
0:43:10 > 0:43:14We return now to historic Rochester in Kent where we were
0:43:14 > 0:43:17looking at this classic two-bedroom Victorian terrace.
0:43:17 > 0:43:21At least, that's how it looked from the outside.
0:43:23 > 0:43:27So just when you think you've seen it all, another terraced house?
0:43:27 > 0:43:30Oh, no! Look at this.
0:43:38 > 0:43:41With posters, postcards, and even rugs on the wall,
0:43:41 > 0:43:44I don't think I've ever seen such a poster-plastered pad before.
0:43:44 > 0:43:49However, this house did have big pluses as far as I was concerned.
0:43:49 > 0:43:53A lovely, private back garden, a basement for storage,
0:43:53 > 0:43:57and my favourite features, those beautiful fireplaces.
0:43:57 > 0:44:00And it was the original features of the property that had drawn
0:44:00 > 0:44:03Sasha, who works as a decorative artist,
0:44:03 > 0:44:06and her husband Marino, who is a property developer,
0:44:06 > 0:44:10to see potential and pay £132,000 at auction.
0:44:12 > 0:44:15So what happened on auction day? How much did you intend to spend?
0:44:15 > 0:44:18Well, my budget line was about £125,000,
0:44:18 > 0:44:21but unfortunately it went past that before we even started bidding.
0:44:21 > 0:44:24So I said, ""We've got to have the house, let's go a little bit more.
0:44:24 > 0:44:27"It doesn't matter. £10,000 here or there, it doesn't matter. We've got to get it."
0:44:27 > 0:44:31The lady came and said, "So you're the one who is buying?"
0:44:31 > 0:44:34And I said, "Yeah, I'm the one, but he's paying!"
0:44:34 > 0:44:36Well, as well as thorough modernisation,
0:44:36 > 0:44:40Sasha and Marino were thinking about moving the bathroom downstairs,
0:44:40 > 0:44:43reclaiming the space upstairs for a third bedroom.
0:44:43 > 0:44:47However, having spent £132,000 on a property
0:44:47 > 0:44:51with a £95,000 guide price, the couple were going to have to keep
0:44:51 > 0:44:53an eye on further spending,
0:44:53 > 0:44:56else risk eating into any potential profits.
0:44:58 > 0:45:02Sasha and Marino planned to turn the house round in three months,
0:45:02 > 0:45:05and just over nine months on, we are back.
0:45:22 > 0:45:24We didn't doubt you guys for a second.
0:45:24 > 0:45:29When we took over the house we came in and removed all the carpets
0:45:29 > 0:45:33and postcards and things on the wall, as you can see,
0:45:33 > 0:45:35had it re-plastered,
0:45:35 > 0:45:40rewired, replumbed, new bathroom, new kitchen,
0:45:40 > 0:45:42and of course decorated throughout.
0:45:44 > 0:45:46The new additions are really lovely,
0:45:46 > 0:45:48and of course vital for modern-day living.
0:45:48 > 0:45:52But I'm so glad to see that they kept those wonderful original
0:45:52 > 0:45:54features, including those sash windows.
0:45:57 > 0:45:59We had a bit of an argument about the windows
0:45:59 > 0:46:03because he wanted to change them and I wanted to keep the original ones,
0:46:03 > 0:46:08because we were all along trying to keep it as original as we could.
0:46:08 > 0:46:10So I won.
0:46:11 > 0:46:15Good work, Sasha. I know Marino has a point, they will never
0:46:15 > 0:46:18be as energy-efficient as modern double glazing.
0:46:18 > 0:46:21But I have to say they look beautiful,
0:46:21 > 0:46:24and as they are original features, changing them may have needed
0:46:24 > 0:46:26permission from the local authority
0:46:26 > 0:46:29and this can never be taken for granted.
0:46:29 > 0:46:33In this case, I think restoration was by far the better choice.
0:46:34 > 0:46:37Speaking of choices, there is no extension.
0:46:37 > 0:46:40And the bathroom remains upstairs.
0:46:40 > 0:46:44So why did they decide against those changes?
0:46:44 > 0:46:46We looked quickly at the cost of extending it.
0:46:46 > 0:46:50Viably, it wouldn't be worth spending the money on the house
0:46:50 > 0:46:53for what the market is actually doing in the area.
0:46:53 > 0:46:57So we decided just to put a new kitchen where it was
0:46:57 > 0:46:59and move the boiler into the outer house,
0:46:59 > 0:47:03just so it gives us a bit more room to put a nice kitchen in,
0:47:03 > 0:47:04which I think we've done.
0:47:04 > 0:47:07Three bedrooms would have been ideal if I was keeping it
0:47:07 > 0:47:11as a rental property, but as it's a house we're going to sell,
0:47:11 > 0:47:15we thought any family coming in would not want to go downstairs
0:47:15 > 0:47:18to the toilet in the middle of the night,
0:47:18 > 0:47:23so we decided to keep the bathroom where it was, and just replace it.
0:47:23 > 0:47:27Adding a bedroom and extending the kitchen would undoubtedly
0:47:27 > 0:47:30have added value, but Marino has done his research.
0:47:30 > 0:47:33The couple were on a tight budget of £10,000,
0:47:33 > 0:47:35and as an experienced property developer,
0:47:35 > 0:47:39he's made an informed decision, which is difficult to argue with.
0:47:39 > 0:47:42And it seems Sasha used her artistic experience too.
0:47:45 > 0:47:48We did add something just to make it a bit more special.
0:47:48 > 0:47:50I decided to keep it very simple,
0:47:50 > 0:47:54because it had the fireplaces which are already quite rich.
0:47:54 > 0:47:59Not too much, otherwise it would have been a bit too heavy. A few details.
0:48:00 > 0:48:03And very tasteful they are too.
0:48:03 > 0:48:06But Sasha's artistic talent was never in doubt,
0:48:06 > 0:48:08it was the budget that I was worried about.
0:48:08 > 0:48:13Basically, the budget was £10,000, as you know,
0:48:13 > 0:48:16but we've gone a little bit over the £10,000.
0:48:16 > 0:48:20- It's £15,000.- And it wasn't just their budget that they exceeded.
0:48:20 > 0:48:23The three-month timescale proved hard to meet because of delays
0:48:23 > 0:48:26in getting the tradesmen they wanted.
0:48:26 > 0:48:29But Sasha thinks the delay isn't all bad.
0:48:29 > 0:48:32It did work quite well for us as well.
0:48:32 > 0:48:37Because the market price went a bit higher. So I think it did help a bit.
0:48:37 > 0:48:38Yeah.
0:48:38 > 0:48:41Let's hope Sasha was right about that,
0:48:41 > 0:48:45because they did pay over the odds at auction, and have overspent.
0:48:45 > 0:48:48If you add that £132,000 purchase price,
0:48:48 > 0:48:55and their £15,000 renovation budget, that brings their total to £147,000.
0:48:56 > 0:48:59We asked two local agents along to give us their thoughts.
0:49:02 > 0:49:06I feel that the property has been modernised to a good standard,
0:49:06 > 0:49:09although they have kept a lot of the original features, which is
0:49:09 > 0:49:10a nice thing.
0:49:10 > 0:49:14This is my second time inside the property.
0:49:14 > 0:49:16The first time it was in a very poor state.
0:49:16 > 0:49:19This time it has been done to an acceptable standard.
0:49:19 > 0:49:22There's an excellent demand for this type of property in the area.
0:49:22 > 0:49:25First-time buyers are still looking for property.
0:49:25 > 0:49:28We're finding this type of property is selling quite quickly.
0:49:28 > 0:49:31The couple decided against extending the property.
0:49:31 > 0:49:34Has that been a mistake in terms of resale value?
0:49:34 > 0:49:39Remember, they've spent £147,000 so far.
0:49:39 > 0:49:42If the owner were going to market the property for sale,
0:49:42 > 0:49:46I would suggest a figure in the region of £160,000.
0:49:46 > 0:49:48I would expect this property to achieve
0:49:48 > 0:49:50something in the region of £160,000.
0:49:52 > 0:49:56A sale of £160,000 would give Sasha and Marino
0:49:56 > 0:50:01a profit of £13,000, minus the usual taxes and expenses.
0:50:01 > 0:50:04But what do they think of those valuations?
0:50:05 > 0:50:10- No, we...- Very low.- Yes, very low.
0:50:10 > 0:50:13Mmm, a disappointing figure for both of them.
0:50:13 > 0:50:16Will the rental valuation prove more positive?
0:50:16 > 0:50:17For rental,
0:50:17 > 0:50:22the property should achieve in the region of £650 per calendar month.
0:50:22 > 0:50:26I would expect this property to achieve something in the region
0:50:26 > 0:50:31of £750 to £800 per calendar month.
0:50:31 > 0:50:35I think £700 is more of a realistic price.
0:50:35 > 0:50:38I think going to £800 would be too much for the area.
0:50:38 > 0:50:40But we're not thinking of renting anyway.
0:50:40 > 0:50:45But I think £700, £750 is a very nice, reasonable price.
0:50:46 > 0:50:50£750 per calendar month would mean a respectable yield of just
0:50:50 > 0:50:54over 6%, but they're still not interested in renting.
0:50:56 > 0:50:57Hang on, why ever not?
0:50:59 > 0:51:03We've had a cash offer of just below £175,000,
0:51:03 > 0:51:06and it's only been on the market three days.
0:51:06 > 0:51:10So we are quite impressed. So, yeah.
0:51:10 > 0:51:12If that deal does go through,
0:51:12 > 0:51:15that would see a nice pre-tax profit of £28,000.
0:51:16 > 0:51:21- So would they do it again?- It was good fun. It was a good experience.
0:51:21 > 0:51:27- It was fun!- A bit stressful. But we are pleased with the result.
0:51:27 > 0:51:29- I'm pleased with the results, yeah.- We are happy.
0:51:33 > 0:51:37Now, back in the Derbyshire town of Matlock,
0:51:37 > 0:51:41will this two-bed semi fare as well?
0:51:43 > 0:51:46It certainly was in need of some attention.
0:51:48 > 0:51:50Rundown kitchen,
0:51:50 > 0:51:52dilapidated bathroom,
0:51:52 > 0:51:54no central heating,
0:51:54 > 0:51:57and a garden that was a tangled mass of overgrowth.
0:51:59 > 0:52:02This place wasn't just tired, it was worn out.
0:52:02 > 0:52:06But buried beneath all this neglect looked a solid house.
0:52:06 > 0:52:09It just needed someone to unearth its potential.
0:52:13 > 0:52:15Cue Gary, who thought he had what it takes
0:52:15 > 0:52:18to get this house back on track,
0:52:18 > 0:52:21and so bought it as a joint purchase with his brother, John,
0:52:21 > 0:52:25with a decisive bid of £80,250.
0:52:27 > 0:52:31# I want you now
0:52:31 > 0:52:34# I want you now... #
0:52:34 > 0:52:38- You did one bid just then. - The last bid, yes.- Wham.
0:52:38 > 0:52:40- Is that a strategy?- It is, yeah.
0:52:40 > 0:52:42I wait till the end, till everybody has exhausted themselves,
0:52:42 > 0:52:46- then I bid.- Tell me why you wanted to buy it.- I like the area.
0:52:46 > 0:52:49I like the property. I thought, it's only cosmetic I need to do to it.
0:52:49 > 0:52:52- There's no structural work. It's all right for a rental.- Yeah.
0:52:52 > 0:52:55- Is that the plan then?- That's the plan, yes, I'd rent it out.
0:52:55 > 0:52:56Gary, along with his brother John,
0:52:56 > 0:53:00run their own business fitting kitchens and bathrooms,
0:53:00 > 0:53:03so hoped they could do the majority of the work on a budget
0:53:03 > 0:53:07of £10,000 to £12,000 at a timescale of 12 weeks.
0:53:10 > 0:53:12Well, now, three months later, we're back.
0:53:17 > 0:53:21As I suspected, there was a decent house lurking in the undergrowth.
0:53:21 > 0:53:25And with new windows and a low-maintenance front garden,
0:53:25 > 0:53:28well, the curb appeal has gone up a notch or two.
0:53:30 > 0:53:31And inside?
0:53:34 > 0:53:38Bright, light and airy, and with new central heating fitted,
0:53:38 > 0:53:41well, there was no need for that old fireplace.
0:53:43 > 0:53:49And remember that very sorry kitchen? Just look at it now.
0:53:49 > 0:53:51Well, you would expect kitchen fitters to come up with
0:53:51 > 0:53:54a good solution. And they have.
0:53:54 > 0:53:56Knocking down the door to the hallway,
0:53:56 > 0:54:00they've made it bigger, with more units and work surfaces.
0:54:00 > 0:54:02And upstairs?
0:54:02 > 0:54:06Well, the two bedrooms have been replastered, redecorated,
0:54:06 > 0:54:08and completely revamped.
0:54:08 > 0:54:10The bathroom is well on its way.
0:54:10 > 0:54:13It just needs a little bit of finishing off.
0:54:13 > 0:54:17So inside the house has been rejuvenated.
0:54:17 > 0:54:20But then there was that back garden...
0:54:24 > 0:54:26The biggest challenge was the garden.
0:54:26 > 0:54:29We had to cut it back, we had to have diggers on the site.
0:54:29 > 0:54:33And we've replaced it all with decorative chippings.
0:54:35 > 0:54:37Well, it might look a bit sparse and bare now,
0:54:37 > 0:54:41but give it a few months and this will be a fantastic space.
0:54:41 > 0:54:43And the views aren't bad either.
0:54:45 > 0:54:48The majority of the work has been done by me and my brother.
0:54:48 > 0:54:50I've had help from my father as well,
0:54:50 > 0:54:52doing a lot of the work done here.
0:54:52 > 0:54:55My wife has done a small amount of painting,
0:54:55 > 0:54:58and I've even had my mother down cleaning the house.
0:54:58 > 0:55:01It has, as Gary promised, been a family effort.
0:55:01 > 0:55:04But wait a minute, hasn't his brother, John, just become a father?
0:55:04 > 0:55:08So how did he cope with a new baby and doing the renovation work?
0:55:10 > 0:55:13He's got on quite well with the property, although they've had
0:55:13 > 0:55:16quite a few sleepless nights with their new arrival, Maggie.
0:55:16 > 0:55:19While new arrival Maggie kept her parents awake,
0:55:19 > 0:55:21Uncle Gary cracked on with the work.
0:55:21 > 0:55:24And he hopes to finish it all in a couple of weeks.
0:55:24 > 0:55:25But will it be done on budget?
0:55:28 > 0:55:31The initial budget was £10,000 to £12,000.
0:55:31 > 0:55:33We've come in at £12,000, so both me
0:55:33 > 0:55:35and my brother are quite pleased with that.
0:55:38 > 0:55:43£10,000 on top of their £80,250 purchase price would take
0:55:43 > 0:55:48the brothers' spend to £90,250 without costs or fees.
0:55:48 > 0:55:52So is it money well spent? What did two local estate agents think?
0:55:55 > 0:55:58It's the first time inside the property.
0:55:58 > 0:56:02I think the work that's been carried out looks very professional
0:56:02 > 0:56:05and the layout works really well. There are good-sized bedrooms,
0:56:05 > 0:56:08nice sized sitting room and a good, fitted kitchen.
0:56:08 > 0:56:12The selling points of this property are most particularly the view.
0:56:12 > 0:56:14And in terms of the work done,
0:56:14 > 0:56:16it has been done to a good standard,
0:56:16 > 0:56:20with a modern edge which is what is expected in today's market.
0:56:21 > 0:56:23The plan is to let the house out.
0:56:23 > 0:56:27But how would their £90,250 investment fare
0:56:27 > 0:56:30on the current resale market?
0:56:30 > 0:56:33If the owner was going to place the property on the open market,
0:56:33 > 0:56:38I would expect it to achieve in the region of £115,000.
0:56:38 > 0:56:42I would expect it to achieve a figure in the region of £110,000.
0:56:42 > 0:56:44I'm very happy with those figures, yeah.
0:56:44 > 0:56:46For what we've spent on it, and how long it has taken us to do,
0:56:46 > 0:56:48I am very happy with those figures.
0:56:48 > 0:56:51That's not bad. That's a potential profit
0:56:51 > 0:56:55of between £20,000 and £25,000, minus the usual taxes and expenses.
0:56:55 > 0:56:58But what about those all-important rental returns?
0:57:01 > 0:57:04If the property were placed on the market for rental, I would
0:57:04 > 0:57:09expect it to achieve in the region of £500 to £550 per calendar month.
0:57:09 > 0:57:12For a rental figure, I would expect to achieve
0:57:12 > 0:57:14a figure in the region of £500 per calendar month.
0:57:14 > 0:57:16I'm very happy with the figures
0:57:16 > 0:57:19they have both shown, but I've actually got a higher rental figure.
0:57:19 > 0:57:21And I've got someone moving in in the next week or so.
0:57:21 > 0:57:23Well, that's fantastic news.
0:57:23 > 0:57:28And a figure above £550 per calendar month would see a healthy
0:57:28 > 0:57:30rental yield in the region of 7%.
0:57:30 > 0:57:32So what's next for Uncle Gary?
0:57:35 > 0:57:38Previous to this auction we bought a plot of land close to where I live.
0:57:38 > 0:57:41We plan to do a new build on there, a bungalow.
0:57:41 > 0:57:45We are also looking at other properties to buy to rent out there.
0:57:45 > 0:57:49We've had a good experience of this one and we want to carry it on.
0:57:50 > 0:57:54Well, there are lots of lessons to be learnt in the world of property.
0:57:54 > 0:57:57Stick with us and we'll give you some tips.
0:57:57 > 0:57:59Join us next time as we meet more plucky buyers
0:57:59 > 0:58:01buying their homes under the hammer.
0:58:01 > 0:58:03- We'll see you then. - Goodbye.- Goodbye.