0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:05Today the weather has been a bit changeable.
0:00:05 > 0:00:07We've had sunshine and some cloud.
0:00:07 > 0:00:10Well, ups and downs. A bit like the property market,
0:00:10 > 0:00:13but you know what? It's all about buying at the right price
0:00:13 > 0:00:15and at the right time and that's what me and Lucy
0:00:15 > 0:00:17are always telling you here on Homes Under the Hammer.
0:00:43 > 0:00:47Well, spotting a bargain is what everyone wants to do,
0:00:47 > 0:00:49but if two of you spot the bargain
0:00:49 > 0:00:52and you're bidding against each other, well, it drives up the price.
0:00:52 > 0:00:56The only way round that is to come up with a budget and to stick to it.
0:00:56 > 0:00:59I wonder if today's bidders did just that.
0:00:59 > 0:01:01Let's take a look at what they bought.
0:01:03 > 0:01:06In Stoke-on-Trent, I thought I'd seen it all
0:01:06 > 0:01:08when it came to terraced properties,
0:01:08 > 0:01:11but I wasn't expecting that.
0:01:12 > 0:01:15Whereas, in Kent, my property instincts tell me
0:01:15 > 0:01:17that all isn't quite right.
0:01:17 > 0:01:19I've just got a feeling that it's out here
0:01:19 > 0:01:21that it goes horribly wrong.
0:01:22 > 0:01:26And, in south Wales, I've got some searching of my own to do.
0:01:26 > 0:01:29Stairs down and stairs up.
0:01:29 > 0:01:31Got to be explored.
0:01:33 > 0:01:35All these properties have been sold at auction.
0:01:35 > 0:01:38We'll find out who bought them and what they paid for them
0:01:38 > 0:01:40when they went under the hammer.
0:01:40 > 0:01:42You've bought it, sir. Well done.
0:01:49 > 0:01:51Terraced properties.
0:01:51 > 0:01:55Over the years, I have visited literally hundreds for the show.
0:01:55 > 0:02:01Two bedrooms, three bedrooms, good, solid family homes
0:02:01 > 0:02:05and the bedrock of the British property stock.
0:02:10 > 0:02:13Often built as housing for factory workers,
0:02:13 > 0:02:17they provided high-volume housing using a repeated joined-up style
0:02:17 > 0:02:20that allowed for less build and design costs
0:02:20 > 0:02:23which meant affordable housing and Stoke-on-Trent,
0:02:23 > 0:02:27which employed thousands of workers for its pottery manufacturing,
0:02:27 > 0:02:29was no exception.
0:02:34 > 0:02:39So, terrace property, terrace property, terrace property,
0:02:39 > 0:02:43gap, terrace property,
0:02:43 > 0:02:46not a terrace property.
0:02:46 > 0:02:49That's interesting because you'd expect that to continue,
0:02:49 > 0:02:50but no.
0:02:50 > 0:02:56This big cream building is the property that was up for auction
0:02:56 > 0:03:01and a terrace property of standard proportions it is not,
0:03:01 > 0:03:05hinted at by the guide price. £115,000 plus.
0:03:05 > 0:03:06Let's take a look.
0:03:11 > 0:03:13I wasn't expecting that.
0:03:13 > 0:03:14Wow!
0:03:14 > 0:03:17Look at the size of this room.
0:03:17 > 0:03:23Even a baby grand piano is lost in this space.
0:03:23 > 0:03:24It's enormous.
0:03:24 > 0:03:29Nice floor. Looks to be in reasonable condition.
0:03:29 > 0:03:31This is incredible.
0:03:31 > 0:03:33I thought that was big, look at this.
0:03:33 > 0:03:37Is this a house or is this some kind of a... I don't know.
0:03:37 > 0:03:39A banqueting suite or...
0:03:39 > 0:03:43I mean, I'm sorry, I'm not being very descriptive of what I'm seeing.
0:03:43 > 0:03:46You can just see, can't you? What an amazing space!
0:03:46 > 0:03:48And it just goes on and on and on.
0:03:48 > 0:03:51Through here, lots of little rooms going off.
0:03:51 > 0:03:52There's a room down there.
0:03:52 > 0:03:58This massive great leisure centre complex,
0:03:58 > 0:03:59conference centre.
0:03:59 > 0:04:04The building does seem to be in pretty good condition and...
0:04:04 > 0:04:09Oh, wow. So it continues. Look at this kitchen.
0:04:09 > 0:04:14It's almost like I've been shrunk, like I'm in Alice in Wonderland
0:04:14 > 0:04:18or something, and I'm very small and the house is disproportionately big.
0:04:18 > 0:04:21It almost belies belief...
0:04:23 > 0:04:25..but it's true. Wow!
0:04:28 > 0:04:32At a guess, and an educated one given my experience of them,
0:04:32 > 0:04:36I think this one big building must have been three terraces originally.
0:04:39 > 0:04:42While downstairs is all about big open spaces,
0:04:42 > 0:04:47the opposite is true of upstairs with a warren of small rooms.
0:04:52 > 0:04:55For the life of me I can't figure out
0:04:55 > 0:04:58what this building was previously used for.
0:04:58 > 0:05:01I mean, it's obviously been extensively refurbished
0:05:01 > 0:05:05and it is extensive in total.
0:05:05 > 0:05:08I mean, we've got more and more rooms. One there,
0:05:08 > 0:05:09there's another one over this way,
0:05:09 > 0:05:14you've got this big room here which is almost a walk-through
0:05:14 > 0:05:17which isn't ideal. So, I mean, would these let as individual rooms?
0:05:17 > 0:05:19I mean, I don't know.
0:05:19 > 0:05:23I'm really at a loss because you come in here and there's more rooms.
0:05:23 > 0:05:25There's one over there, there's one here,
0:05:25 > 0:05:27there's a separate little kitchen area there,
0:05:27 > 0:05:31steps down to the kitchen area again. I'm not sure.
0:05:31 > 0:05:35It's very easy to get disorientated as you wander round.
0:05:35 > 0:05:38I think I'm above that big room downstairs at the moment,
0:05:38 > 0:05:42but, as I said, to get your head around it you'd need to have
0:05:42 > 0:05:45an architect come up with an interior plan of this as it is
0:05:45 > 0:05:49before you even started to think about what you can do with it.
0:05:49 > 0:05:53This is another of the bedrooms. Absolutely massive.
0:05:53 > 0:05:54Wow!
0:05:54 > 0:05:56You need to sit down in a darkened room
0:05:56 > 0:05:59with a wet towel around your head to figure this one out.
0:06:21 > 0:06:22Yes, it's all rather confusing.
0:06:22 > 0:06:27It seems my much-loved terrace has been converted into one property
0:06:27 > 0:06:32with, wait for it, seven bedrooms, five living rooms,
0:06:32 > 0:06:37two kitchens, two bathrooms and just loads of general rooms,
0:06:37 > 0:06:39but what to do with it all?
0:06:50 > 0:06:54Time, I think, to get some advice from a local property expert.
0:06:55 > 0:06:59First impressions of this property. It is exceptionally large
0:06:59 > 0:07:03and it's really too large to be used as one dwelling.
0:07:03 > 0:07:06I think, to maximise the return for this property,
0:07:06 > 0:07:10the buyer would need to look into, possibly, conversion into flats
0:07:10 > 0:07:14or, possibly, bedsits or individual letting rooms
0:07:14 > 0:07:16which, of course, would all be subject
0:07:16 > 0:07:18to the relevant planning permission.
0:07:18 > 0:07:20I think the agent is spot on.
0:07:20 > 0:07:25Too big as one house, but at that guide price of 115,000,
0:07:25 > 0:07:27that flat idea could be very attractive.
0:07:27 > 0:07:30So, what kind of money could they make?
0:07:30 > 0:07:34I would anticipate one-bedroom flats in this area
0:07:34 > 0:07:36would be in the region of £50,000.
0:07:36 > 0:07:41Possibly, two-beds, you could be closer to the £60,000 mark.
0:07:41 > 0:07:44OK, assuming you could get a maximum of six one-bed flats,
0:07:44 > 0:07:48that would mean a total sale price of £300,000.
0:07:48 > 0:07:52Minus the auction price paid and the conversion costs,
0:07:52 > 0:07:55there's still room for a healthy profit here,
0:07:55 > 0:07:57but would rental in some form or other
0:07:57 > 0:07:59be an option worth considering?
0:07:59 > 0:08:02I think if you were going to rent it as individual rooms,
0:08:02 > 0:08:04you would possibly be looking at
0:08:04 > 0:08:07around £250 per calendar month per room.
0:08:07 > 0:08:10I would anticipate rental income for one-bedroom flats to be
0:08:10 > 0:08:13in the region of £350 per calendar month
0:08:13 > 0:08:19and two-bedrooms possibly between 400 and 425 per calendar month.
0:08:23 > 0:08:26Well, it's an intriguing property, for sure,
0:08:26 > 0:08:30that could be a potentially lucrative venture for someone,
0:08:30 > 0:08:32but that someone is going to need a lot of money
0:08:32 > 0:08:35and quite a bit of imagination to take this on.
0:08:35 > 0:08:38Let's find out who bought it when it went under the hammer.
0:08:41 > 0:08:44Lot 91 is a substantial corner terrace building,
0:08:44 > 0:08:50large accommodation, lots of rooms, shall we say 115, then? Lot 91.
0:08:50 > 0:08:54115, back left. At £115,000.
0:08:54 > 0:08:58120, I'm going to say now. £120,000.
0:08:58 > 0:09:01125. £125,000.
0:09:01 > 0:09:04130. 130,000.
0:09:04 > 0:09:07135. £135,000.
0:09:07 > 0:09:11140. No, then 135,000, by the door.
0:09:11 > 0:09:14136 anywhere else?
0:09:14 > 0:09:16136, seated.
0:09:16 > 0:09:20137. 138. 139.
0:09:20 > 0:09:24140. 141. 142.
0:09:24 > 0:09:26Shaking his head. 142, seated.
0:09:26 > 0:09:28143 anywhere else?
0:09:28 > 0:09:33If not, I'm selling it at 142,000 to the gentleman seated.
0:09:33 > 0:09:34For the first time.
0:09:34 > 0:09:38At £142,000, for the second time.
0:09:38 > 0:09:43Third and final time at £142,000.
0:09:43 > 0:09:45You've bought it, sir. Well done.
0:09:45 > 0:09:48And so the hammer fell at 142,000
0:09:48 > 0:09:51and the successful bid was made by Neil,
0:09:51 > 0:09:55who bought it as a joint purchase with his business partner David.
0:09:58 > 0:10:01Eagle-eyed viewers will have spotted that I've met them before,
0:10:01 > 0:10:04but on a much smaller development project.
0:10:12 > 0:10:15- Neil, David, good to see you both - again.- Nice to see you.
0:10:15 > 0:10:16MARTIN LAUGHS
0:10:16 > 0:10:21- Welcome to the Palace Ballroom! - Yeah, feels that way, doesn't it?
0:10:21 > 0:10:24So, welcome back to the show. How did the last project go?
0:10:24 > 0:10:26Before we get onto this one.
0:10:26 > 0:10:30Went really well, nice, straightforward project,
0:10:30 > 0:10:33simple terraced house.
0:10:33 > 0:10:35I say it's simple - he does the work, I don't.
0:10:35 > 0:10:37So it's easy for me.
0:10:37 > 0:10:41But, yeah, went well, tenants moved in the day after you moved out
0:10:41 > 0:10:43- and they're still there. - Result.
0:10:43 > 0:10:47So...what about this place, then?
0:10:47 > 0:10:50- Yeah, it's big, isn't it? - Why did you want to buy it?
0:10:50 > 0:10:52Simply the sheer size of the property
0:10:52 > 0:10:53made it an attractive option.
0:10:53 > 0:10:56OK, so what are you going to do with it, then?
0:10:56 > 0:10:59- Well, the intention is to put it into about ten flats.- Ten flats?
0:10:59 > 0:11:01Eight to ten, yeah.
0:11:01 > 0:11:03- Individual, self-contained flats?- Yes.
0:11:03 > 0:11:06Upstairs is virtually divided into flats,
0:11:06 > 0:11:09it's just sorting out the downstairs.
0:11:09 > 0:11:13If David and Neil's plan to convert this building into flats goes ahead,
0:11:13 > 0:11:17they would either sell the entire redevelopment to an investor,
0:11:17 > 0:11:19or sell some of the flats individually
0:11:19 > 0:11:22and keep some to rent out.
0:11:22 > 0:11:24But whatever route they choose,
0:11:24 > 0:11:27it's all dependent on planning permission being granted.
0:11:28 > 0:11:31We spoke to the planning department before we bought the building.
0:11:31 > 0:11:34They gave us an indication of what they would want,
0:11:34 > 0:11:39in theory it would work, so we've obviously got to put
0:11:39 > 0:11:41the formal application in and just check
0:11:41 > 0:11:43that there's no hidden problems.
0:11:43 > 0:11:46- But in theory it works?- Yeah, yeah. - What about parking?
0:11:46 > 0:11:49Because it's on bus roads into the centre,
0:11:49 > 0:11:52they were quite comfortable with that. There's no...
0:11:52 > 0:11:55City centre development or town centre development, so it
0:11:55 > 0:12:00doesn't come under those constraints of each flat having a parking space.
0:12:00 > 0:12:04So how would the ten flats work layout-wise?
0:12:04 > 0:12:07Well, there's two staircases into the building,
0:12:07 > 0:12:11three front doors, potentially the front door -
0:12:11 > 0:12:14which is right in the centre - will serve two flats on the ground floor.
0:12:14 > 0:12:17We've then got the two staircases,
0:12:17 > 0:12:20which hopefully will serve four flats -
0:12:20 > 0:12:24two downstairs, two upstairs.
0:12:24 > 0:12:27And the other back door will probably serve three upstairs,
0:12:27 > 0:12:30- two downstairs.- Right.
0:12:30 > 0:12:33This area here will be split into two flats,
0:12:33 > 0:12:36there's another flat at the front there, another at the corner,
0:12:36 > 0:12:39and we should be able to squeeze another one in next door.
0:12:39 > 0:12:42What kind of costs do you think would be involved
0:12:42 > 0:12:44in creating ten flats?
0:12:44 > 0:12:48I think we're roughly looking at around 200,000.
0:12:48 > 0:12:53£200,000, spent along with their £142,000 purchase price,
0:12:53 > 0:12:58will commit them to a spend of £342,000.
0:12:58 > 0:13:00But with the local property expert valuing one-bed flats
0:13:00 > 0:13:05around £50,000, ten of those could bring in a cool
0:13:05 > 0:13:08half a million quid, and that would see a rather nice profit.
0:13:08 > 0:13:12David is hoping, planning permission notwithstanding,
0:13:12 > 0:13:16his team of builders could turn this around in just four months.
0:13:17 > 0:13:21Remind me how it's divvied out between you two, what do you do?
0:13:21 > 0:13:23You're the building side of things, aren't you?
0:13:23 > 0:13:26I get involved with what happens on-site, yes.
0:13:26 > 0:13:27And you swan around in the office?
0:13:27 > 0:13:30- Pretty much, turn up every three weeks...- Play golf.
0:13:30 > 0:13:34- No, I play the golf. - Much better than me!
0:13:34 > 0:13:38My job, I'm an independent financial advisor,
0:13:38 > 0:13:43so during my day job I'll help people look after their money,
0:13:43 > 0:13:46and in the evenings I sort out the properties,
0:13:46 > 0:13:51do the research on the internet, talk to the agents, do that side
0:13:51 > 0:13:53and leave the practical stuff to David.
0:13:53 > 0:13:56Right, obviously the relationship's working well.
0:13:56 > 0:13:58Yeah, it's been working for two-and-a-half years now,
0:13:58 > 0:14:01we haven't fallen out.
0:14:01 > 0:14:05Congratulations, really excited to see how it all turns out.
0:14:05 > 0:14:07- Thank you very much.- Good to see you again.- Cheers.
0:14:09 > 0:14:13Well, it seems the history of this place is largely irrelevant.
0:14:13 > 0:14:17Neil and Dave seem to have found themselves a real gold mine here,
0:14:17 > 0:14:20and if they get that planning permission for ten flats,
0:14:20 > 0:14:22lots of money to be made.
0:14:23 > 0:14:28Will they...or won't they? You can find out later in the show.
0:14:31 > 0:14:35Never mind potential gold mines in Stoke, I've gone to
0:14:35 > 0:14:39a location where I'm hoping I might find a real gem.
0:14:39 > 0:14:42I'm in Whitstable, on the beautiful Kent coast.
0:14:42 > 0:14:46It's a much sought-after area with good transport links to
0:14:46 > 0:14:50the capital, making properties very much in demand.
0:14:50 > 0:14:53Also in demand is Whitstable's most famous seafood,
0:14:53 > 0:14:57which it's been exporting since Roman times.
0:14:57 > 0:15:02# You're not the only oyster in the stew
0:15:02 > 0:15:07# Not the only tea leaf in the tea... #
0:15:07 > 0:15:11Five minutes is all it takes to walk from the beach to the property,
0:15:11 > 0:15:15so you can hide from the tourists, but a blast of the sea air?
0:15:15 > 0:15:18Well, it's literally a stone's throw away, which is perfect.
0:15:18 > 0:15:21And the outlook is pretty good too.
0:15:21 > 0:15:23You've got this extremely pleasant green right here,
0:15:23 > 0:15:26and while it might not be sea views from the windows,
0:15:26 > 0:15:28your view is fantastic.
0:15:28 > 0:15:31The house itself is a two-bedroom terrace.
0:15:31 > 0:15:35It had a guide price of £110-115,000.
0:15:35 > 0:15:36I'm going to check it out.
0:15:38 > 0:15:42The properties surrounding the green are mainly semidetached
0:15:42 > 0:15:46or terraced, with an average price of around about £148,000,making
0:15:46 > 0:15:49the area one of the cheapest places to live in Whitstable,
0:15:49 > 0:15:53providing you can find one that suits you.
0:15:54 > 0:15:58# You're the only one for me. #
0:15:58 > 0:16:00When you walk in, the first thing
0:16:00 > 0:16:02you realise is it's incredibly small.
0:16:02 > 0:16:06It's got a cottage-like feeling to it, but what I love is
0:16:06 > 0:16:10the fact that there is a certain amount of charm and character.
0:16:10 > 0:16:13Really nice sitting room through there, picture rails,
0:16:13 > 0:16:14really wide floorboards...
0:16:14 > 0:16:18I mean, look at these lovely doors with the handles,
0:16:18 > 0:16:21another reception room through here.
0:16:21 > 0:16:25Ooh, very small kitchen, look how disappointing this is.
0:16:25 > 0:16:27But you know what I'm going to say, because I always say it
0:16:27 > 0:16:30on this programme - you could take this wall out!
0:16:30 > 0:16:32You've got to take this wall out,
0:16:32 > 0:16:36because then you'll have a really fabulous kitchen,
0:16:36 > 0:16:39lovely dining table, you could even close this doorway up here,
0:16:39 > 0:16:41use this bit of space...
0:16:41 > 0:16:44Look, you've got so much character, these little cupboards here,
0:16:44 > 0:16:47really nice, think I would keep that.
0:16:47 > 0:16:51So it's dinky, it's delightful...I've just got
0:16:51 > 0:16:54a feeling that it's out here that it goes horribly wrong.
0:16:58 > 0:17:01Yes, gets interesting, doesn't it?
0:17:01 > 0:17:06Bit of a lean-to situation, and as I thought - that's the bathroom!
0:17:06 > 0:17:09I mean, really, are you going to have a bath in there?
0:17:09 > 0:17:10I don't think so.
0:17:10 > 0:17:14And typically, as you would expect in a property like this,
0:17:14 > 0:17:18the outside loo... I'll just close that door.
0:17:18 > 0:17:20..it's not really working.
0:17:20 > 0:17:22But once you're outside, you can see,
0:17:22 > 0:17:24it's such a pretty little garden.
0:17:24 > 0:17:28This really is fantastic, you've got loads of space there,
0:17:28 > 0:17:31so I'm thinking, judging by what they've done next door -
0:17:31 > 0:17:34because there you go, the neighbour's wall comes right
0:17:34 > 0:17:39the way out to here - you could have a nice big extension.
0:17:39 > 0:17:42You could go right the way up, get an extra bedroom,
0:17:42 > 0:17:44a bathroom upstairs, that really, really would
0:17:44 > 0:17:48make this little property so much more worthwhile.
0:17:48 > 0:17:50But what you've got to really think about it is,
0:17:50 > 0:17:54do the figures stack up?
0:17:54 > 0:17:57An extension like this could create approximately half as much
0:17:57 > 0:17:59floor space as the original house.
0:17:59 > 0:18:03Apart from the cash, you wouldn't be sacrificing much.
0:18:03 > 0:18:04There would still be loads of garden,
0:18:04 > 0:18:07you wouldn't have to cut quite as much grass,
0:18:07 > 0:18:10and the first floor bathroom would really add value.
0:18:10 > 0:18:15So let's see what the top floor has in store as it stands.
0:18:17 > 0:18:21Well, in the catalogue it says there are two bedrooms up here.
0:18:21 > 0:18:28Yes, one...two? More like a half size. This is incredibly small.
0:18:28 > 0:18:32Can you call this a bedroom? Would anyone want to sleep in here?
0:18:32 > 0:18:35Can you even fit a single bed along?
0:18:35 > 0:18:38You've got the eaves coming out this way,
0:18:38 > 0:18:41you've got a sort of boxy thing stuck there,
0:18:41 > 0:18:44you probably could try and get rid of it, but it's tiny.
0:18:44 > 0:18:48You do have a lovely little view of the green through that window,
0:18:48 > 0:18:51but that's if you can clamber over your bed and all the bits
0:18:51 > 0:18:55and pieces in between. I'm being positive.
0:18:55 > 0:18:58Look, I'm not saying this couldn't be a nice space,
0:18:58 > 0:19:01or a kind of nice not-much-space.
0:19:01 > 0:19:04Bedroom number two next door is a much better size,
0:19:04 > 0:19:06but not so big that you could steal
0:19:06 > 0:19:09a bit of extra space from here to give to next door.
0:19:09 > 0:19:11You could look to open up the eaves in here
0:19:11 > 0:19:14and maybe think of installing a dormer at the back
0:19:14 > 0:19:18if you didn't want to do the full extension, that is.
0:19:18 > 0:19:19This house is challenging.
0:19:19 > 0:19:23The kitchen's tiny - but not as small as that bedroom - and the
0:19:23 > 0:19:28bathroom and toilet are basically out in the lean-to conservatory.
0:19:28 > 0:19:30It's also cute and quirky,
0:19:30 > 0:19:36but will cuteness cut it at a guide price of £110-115,000?
0:19:36 > 0:19:39We asked along a local estate agent for her opinion.
0:19:43 > 0:19:45First impressions of the property are that it's
0:19:45 > 0:19:47a lovely place in a brilliant location.
0:19:47 > 0:19:51Definitely a project, but keeping the original features will
0:19:51 > 0:19:55definitely give it the appeal should the buyer want to sell it on.
0:19:55 > 0:19:58I don't think it would be worth extending the property,
0:19:58 > 0:20:01because I don't think you'd gain that much more money on top of it.
0:20:01 > 0:20:04But again, maybe putting in roof lights to make it seems more
0:20:04 > 0:20:09light and airy, just giving the appearance of more space.
0:20:09 > 0:20:11The agent doesn't think an extension would be worthwhile,
0:20:11 > 0:20:15so what could this cottage be worth without one?
0:20:15 > 0:20:18If the property was done up to a very good standard,
0:20:18 > 0:20:22you'd be possibly looking at around about the £225,000 mark.
0:20:22 > 0:20:29A property like this could achieve £750-800 per calendar month for rent.
0:20:29 > 0:20:31I think Whitstable is wonderful, full or charm
0:20:31 > 0:20:34and character with a lovely coastline.
0:20:34 > 0:20:37It really is a perfect place to while away a weekend.
0:20:37 > 0:20:40And to own property here would be something special.
0:20:40 > 0:20:45Let's see who thought the same about this house at the auction.
0:20:45 > 0:20:53Lot 150, we've got a guide of 110-115, start me at 110.
0:20:53 > 0:20:55110, and 112.
0:20:55 > 0:20:58112, 115. 115, 117.
0:20:58 > 0:21:00117 in a fresh place.
0:21:00 > 0:21:03Cracking start, with bids coming in from all over the room.
0:21:03 > 0:21:07Hardly surprising, as the average price for a two-bedroom property
0:21:07 > 0:21:10in Whitstable is £190,000.
0:21:10 > 0:21:14We rejoin the bidding at 145,000.
0:21:14 > 0:21:18154, and 147, 146 if it helps...
0:21:20 > 0:21:22That's a definite no, isn't it?
0:21:22 > 0:21:26£145,000, lady's bid on my right-hand side.
0:21:26 > 0:21:31At £145,000 I have - 146, can I tempt you again?
0:21:31 > 0:21:36146. And 147. That's a definite no as well.
0:21:36 > 0:21:40At 146,000 then, for the first time...
0:21:40 > 0:21:44146,000 for the second time...
0:21:44 > 0:21:47£146,000, third and final time...
0:21:47 > 0:21:49146,000, all done.
0:21:49 > 0:21:53Sold at 146,000, well done, and your bidder's number.
0:21:53 > 0:21:56See, that extra thousand made all the difference.
0:21:56 > 0:21:59Indeed, it DID make all the difference.
0:21:59 > 0:22:03That extra grand has made Zaira a very happy woman.
0:22:03 > 0:22:07She's a stylist and vintage shop owner, originally from Brazil,
0:22:07 > 0:22:09who's lived in the UK for 19 years.
0:22:09 > 0:22:13She and dog Indy already know these doggy walks well,
0:22:13 > 0:22:16as they live very nearby in a little cottage.
0:22:16 > 0:22:19I caught up with her at her newly-acquired vintage home-to-be.
0:22:19 > 0:22:22Zaira, it's lovely meeting you today.
0:22:22 > 0:22:25Are you happy with your purchase, and why did you want to move here?
0:22:25 > 0:22:27I needed to downsize a bit
0:22:27 > 0:22:32and release some cash for my property, so this is perfect.
0:22:32 > 0:22:35So your current property is literally round the corner.
0:22:35 > 0:22:38- It is, yes.- So you're downsizing from that house to buy this house.
0:22:38 > 0:22:40- Exactly.- So how did that work out financially?
0:22:40 > 0:22:43Because you've got to have the money ready when you buy at auction,
0:22:43 > 0:22:45and I know you still currently own that house.
0:22:45 > 0:22:50Well, my house, I actually have a very, very special best friend
0:22:50 > 0:22:55who lent me the money to go into the auction and buy this house.
0:22:55 > 0:22:59- You bought this house cash?- Yes, with her cash.- With her cash?- Yes!
0:22:59 > 0:23:03There we go, big box of chocolates and a bunch of flowers.
0:23:03 > 0:23:06Yes, absolutely, I owe her big time.
0:23:06 > 0:23:09# Thank you for being a friend... #
0:23:09 > 0:23:11Zaira has a good friend for sure.
0:23:11 > 0:23:13This has helped her over the period
0:23:13 > 0:23:16when her own Victorian house is in the process of being sold,
0:23:16 > 0:23:20and this house is going to be ideal for her and her son Max.
0:23:20 > 0:23:24Her aim was to downsize, and this does appear to fit the bill.
0:23:25 > 0:23:29First of all, the size I was looking for, with the two bedrooms
0:23:29 > 0:23:31and the garden. Of course, with this price,
0:23:31 > 0:23:36all I could get was a flat on the high street, and having the green
0:23:36 > 0:23:40right in front of the house, and the beach is still only minutes away.
0:23:40 > 0:23:43You're right, for the price of a flat you've got yourself
0:23:43 > 0:23:48a whole house here. The only thing is, it's a little bit small.
0:23:48 > 0:23:50Where's your son going to sleep?
0:23:50 > 0:23:57Well, the small second bedroom, I think I can fit a bed in there.
0:23:57 > 0:24:02- You're going to have fold him up a little, make him cross his legs.- No!
0:24:02 > 0:24:07Actually, the eaves, you can go under, if you see the wall,
0:24:07 > 0:24:11- and then you'll be able to fit a bed. - How does he feel about it?
0:24:11 > 0:24:16He's OK, because I promised the front room, it's going to be a den,
0:24:16 > 0:24:21TV/games room, and I just purchased a summer house for the garden.
0:24:21 > 0:24:23Ah! Perfect.
0:24:23 > 0:24:27So there's other spaces he can use, and he's a 12-year-old boy,
0:24:27 > 0:24:29all he does in his bedroom is sleep.
0:24:29 > 0:24:31So what are the immediate renovations you're going
0:24:31 > 0:24:33- to be doing?- The bathroom upstairs.
0:24:33 > 0:24:38So there's a metre-and-a-half of the eaves, by three metres,
0:24:38 > 0:24:41and I think I can fit a bathroom there.
0:24:41 > 0:24:44- And is your son also going to use that bathroom?- Yes.
0:24:44 > 0:24:46So he'll have to come into your room?
0:24:46 > 0:24:52No, because you can fit a door on the tiny little landing, there's a space.
0:24:52 > 0:24:54'Ah, yes, don't know how I missed that,
0:24:54 > 0:24:58'just off to the left here, giving access to those eaves.
0:24:58 > 0:25:01'Zaira has had plans drawn up for this conversion and hopes she can
0:25:01 > 0:25:03'install the bathroom
0:25:03 > 0:25:08'and do all the other refurbishment work on a budget of £25,000.'
0:25:08 > 0:25:10# What do you do in the bath? #
0:25:12 > 0:25:18- So when do you hope to move in? - In about two weeks.- Really?- Yes.
0:25:18 > 0:25:21- Wow.- I don't want to spend the money on a rental
0:25:21 > 0:25:23when I need it to put into the house.
0:25:23 > 0:25:27- Are you quite excited to renovate and do it over again?- I can't wait.
0:25:27 > 0:25:29Part me of enjoys being on the building side.
0:25:29 > 0:25:33- I can't wait to see that bathroom upstairs.- Yes, that's also why!
0:25:33 > 0:25:38- Happy cosy living. - Thank you very much, thank you.
0:25:38 > 0:25:42Ooh, Zaira has a really good buy here in a fabulous location, but
0:25:42 > 0:25:46she's going to have to put all that creativity to work to make
0:25:46 > 0:25:50this cosy home practical. I'm sure she'll do it, though.
0:25:50 > 0:25:53You can find out if I'm right later on in the show.
0:25:56 > 0:26:01Coming up, in South Wales, this is a hard house to work out...
0:26:02 > 0:26:04HE EXHALES
0:26:05 > 0:26:09We return to Whitstable on the Kent coast to find out what's
0:26:09 > 0:26:11upsetting Zaira's plans...
0:26:11 > 0:26:14Oh... Yeah, don't like it.
0:26:18 > 0:26:21But first, it's back to Stoke-on-Trent,
0:26:21 > 0:26:23which - like many cities and towns -
0:26:23 > 0:26:26has a proliferation of terraced houses.
0:26:26 > 0:26:30But the house we saw was no ordinary two-up two-down.
0:26:30 > 0:26:34It was more a ten-up six-down mega terrace, with at least
0:26:34 > 0:26:37three properties knocked into
0:26:37 > 0:26:39one large sprawling property over two floors,
0:26:39 > 0:26:44consisting of at least seven bedrooms, five living rooms,
0:26:44 > 0:26:46two kitchens, two bathrooms,
0:26:46 > 0:26:50with a downstairs area of ballroom proportions.
0:26:52 > 0:26:56But impressive as the space was, as far as practicality goes,
0:26:56 > 0:26:59it wasn't really the right layout for the local area.
0:27:00 > 0:27:03Property developers Neil and David
0:27:03 > 0:27:07bought it for £142,000 with a definite plan in mind.
0:27:09 > 0:27:11OK, so what are you going to do with it then?
0:27:11 > 0:27:17Well, the intention is to see if we can get about eight to ten flats.
0:27:17 > 0:27:20- Individual, self-contained flats?- Yes.
0:27:20 > 0:27:23And it was going to be down to builder David to
0:27:23 > 0:27:25project manage this large conversion,
0:27:25 > 0:27:28while Neil made sure the £200,000 budget
0:27:28 > 0:27:32they had earmarked for the work was adhered to.
0:27:32 > 0:27:34And once planning permission had been granted,
0:27:34 > 0:27:38they hoped they could complete the work in four months.
0:27:38 > 0:27:42And now, six months later, we're back to see how they got on.
0:27:45 > 0:27:49Well, externally, the property seems to have gained a few more doors.
0:27:49 > 0:27:53That's an encouraging sign, but more importantly, what's inside?
0:27:55 > 0:28:01Ah. This rather smart one-bed flat with open-plan kitchen/diner...
0:28:01 > 0:28:04shower room behind...
0:28:04 > 0:28:06and a single bedroom at the rear.
0:28:09 > 0:28:12But what about the rest of the building?
0:28:15 > 0:28:18Ah - not quite as finished.
0:28:21 > 0:28:23What will all these rooms be once completed?
0:28:25 > 0:28:29We've looked at producing eight flats now.
0:28:29 > 0:28:32Originally we'd hoped to get nine or ten. Reduced slightly,
0:28:32 > 0:28:35but it means each one is slightly larger than originally planned,
0:28:35 > 0:28:38and we think that's going to make them more attractive.
0:28:38 > 0:28:41And the eight one-bed flats will be made up of
0:28:41 > 0:28:45four flats on the ground floor and four flats on the first floor.
0:28:46 > 0:28:49And there'll be five entrances and two stairwells.
0:28:49 > 0:28:53So, presently, what stage are the flats at?
0:28:53 > 0:28:56Basically there's one flat that's completely finished.
0:28:56 > 0:29:00We've then got two flats which are ready for decoration,
0:29:00 > 0:29:05one more which is ready for second fix joinery, then three more
0:29:05 > 0:29:09which are ready for partition work and studwork going up.
0:29:09 > 0:29:14That's going to be completed within the next three or four weeks.
0:29:14 > 0:29:17David has had two teams working on the building.
0:29:17 > 0:29:20One on the first floor and one on the ground floor.
0:29:20 > 0:29:24Then a team was going round doing all the second fix work.
0:29:24 > 0:29:27So, have there been any major problems?
0:29:27 > 0:29:30The biggest job was having a new gable wall built at the
0:29:30 > 0:29:33far end of the building, cos the old one was falling down.
0:29:33 > 0:29:35New staircase had to go in and floors had to be aligned
0:29:35 > 0:29:39to that, but there hasn't been anything really,
0:29:39 > 0:29:41just a lot of the same sort of work.
0:29:41 > 0:29:44Well, it seems - gable end not withstanding -
0:29:44 > 0:29:47this project is working out well for the duo.
0:29:47 > 0:29:49But have they now decided what to do
0:29:49 > 0:29:51with the flats once they're completed?
0:29:51 > 0:29:55We're now at the point where we're prepared to sell all eight flats.
0:29:55 > 0:29:57Very similar to where we were.
0:29:57 > 0:30:00We're quite happy to hang on to two or three of them as well,
0:30:00 > 0:30:03cos they're going to provide a good, steady rental income.
0:30:03 > 0:30:07At the moment, we have three flats under offer,
0:30:07 > 0:30:12so five are still available to either be retained by us or be sold on.
0:30:12 > 0:30:15With three under offer, it certainly indicates that the decision
0:30:15 > 0:30:18to convert the building into flats was the right one.
0:30:18 > 0:30:21But they are creating two less flats than they'd hoped for,
0:30:21 > 0:30:24so, will the figures still add up?
0:30:24 > 0:30:26The budget originally was 200,000.
0:30:26 > 0:30:31We're currently on around about 180,000,
0:30:31 > 0:30:34but that includes fees such as architect's fees,
0:30:34 > 0:30:37we had to spend slightly more on the gable wall -
0:30:37 > 0:30:40although we had allowed for that within the original budget -
0:30:40 > 0:30:43so currently it looks like we're going to complete
0:30:43 > 0:30:45the project on about £180,000.
0:30:47 > 0:30:51Provided they stick to their £180,000 budget, then,
0:30:51 > 0:30:54on top of their £142,000 purchase price,
0:30:54 > 0:31:00their grand total to create eight flats will be £322,000.
0:31:00 > 0:31:04So, what do two local property experts make of
0:31:04 > 0:31:07the development so far?
0:31:07 > 0:31:09This is my second visit to the property.
0:31:09 > 0:31:12They are starting to take shape now and you can see the layout of
0:31:12 > 0:31:16the flats, and I think it will turn out to be a very good development.
0:31:16 > 0:31:18Judging by the flat that's finished,
0:31:18 > 0:31:21the flats will be done to a good standard with good kitchens,
0:31:21 > 0:31:24nice bathrooms, and it's in a good location.
0:31:24 > 0:31:28At present, Neil and David see this as a mixed development of
0:31:28 > 0:31:29resale and rental properties.
0:31:29 > 0:31:33So, how would these one-bed flats fare on the local letting market?
0:31:33 > 0:31:36I would anticipate a rental value in the region of
0:31:36 > 0:31:38£400 per calendar month, per flat.
0:31:38 > 0:31:41As an average rental for the apartments I'd expect them
0:31:41 > 0:31:45to achieve in the region of £375 per calendar month.
0:31:46 > 0:31:49Even the lower £375 per calendar month would potentially
0:31:49 > 0:31:54bring in an annual rental yield of around 115 for the whole building.
0:31:54 > 0:31:56But what about resale values for the flats?
0:31:56 > 0:31:59Will Neil and David see much return from what will be
0:31:59 > 0:32:03a £322,000 investment?
0:32:05 > 0:32:08I would anticipate a resale value for the flats
0:32:08 > 0:32:10individually at around £50,000.
0:32:10 > 0:32:13As an average guide price for each independent flat, I would
0:32:13 > 0:32:18suggest that they would sell at around £50,000 as an average price.
0:32:18 > 0:32:20It's in line with what we expected.
0:32:20 > 0:32:22An average figure is fine, in reality,
0:32:22 > 0:32:28we'd expect the larger top floor sets to sell for a little bit more,
0:32:28 > 0:32:31and the two smaller flats will probably sell for a little bit less.
0:32:33 > 0:32:35An average price of 50,000 would see a
0:32:35 > 0:32:39total return of £400,000 for the eight flats.
0:32:39 > 0:32:43Which would potentially see a pre-tax profit of £78,000.
0:32:43 > 0:32:45That's not bad.
0:32:45 > 0:32:47So, with this looking like a successful venture,
0:32:47 > 0:32:50are they planning more development projects together?
0:32:53 > 0:32:55Yes, gradually. Over the last two or three years
0:32:55 > 0:32:58we've done slightly larger projects each time,
0:32:58 > 0:33:00so we're comfortable with this,
0:33:00 > 0:33:03it seems to have worked well, so yes, we are
0:33:03 > 0:33:05looking for other similar-sized projects.
0:33:09 > 0:33:13If you've never been here before, then the first time you visit
0:33:13 > 0:33:18the Valleys of South Wales, you might be in for a bit of a surprise.
0:33:18 > 0:33:21They really are spectacular.
0:33:23 > 0:33:27This area has been moulded over millions of years by volcanoes,
0:33:27 > 0:33:31rivers, glaciers and even tropical climates.
0:33:31 > 0:33:34All of which have created the natural beauty
0:33:34 > 0:33:37of these deep channels running through the mountains.
0:33:37 > 0:33:40The coal that was also created led to the build-up of villages,
0:33:40 > 0:33:43which have nestled themselves in this stunning backdrop.
0:33:44 > 0:33:48# Into the valley... #
0:33:48 > 0:33:51The town of Penrhiwceiber is no exception,
0:33:51 > 0:33:53but I can't spend all day admiring the view.
0:33:53 > 0:33:56I'd better get on with the property I'm here to see.
0:33:58 > 0:34:01So, what was up for grabs at the auction?
0:34:01 > 0:34:07Well, a two-bedroom mid terrace had a guide price of £23,000 plus.
0:34:07 > 0:34:11It's one of these very attractive properties. What's it like inside?
0:34:11 > 0:34:12Only one way to find out!
0:34:14 > 0:34:16So what have we got?
0:34:16 > 0:34:19Whoo, woodchip wallpaper for a start.
0:34:21 > 0:34:23Can't resist it. Hmm.
0:34:25 > 0:34:28Bit of stripping while I'm here - so to speak.
0:34:28 > 0:34:30Entrance hall through there...
0:34:30 > 0:34:33- LAUGHING:- ..into what is your fairly standard layout.
0:34:33 > 0:34:38A front sitting room. Nice big window, so lots of light.
0:34:38 > 0:34:40Stairs down and stairs up.
0:34:42 > 0:34:44Got to be explored.
0:34:51 > 0:34:52First stop on the tour -
0:34:52 > 0:34:55the bathroom on the same floor as the living room.
0:34:55 > 0:34:57Now ordinarily I would be saying,
0:34:57 > 0:35:00"Ground-floor bathroom? Let's try and move it upstairs."
0:35:00 > 0:35:05But with the house split over three floors, it's best left where it is.
0:35:05 > 0:35:07Look on the bright side - you're only ever
0:35:07 > 0:35:09one flight of stairs from the loo.
0:35:13 > 0:35:17Well, typical of many properties around here,
0:35:17 > 0:35:22the kitchen is actually situated down here on the lower floor.
0:35:22 > 0:35:26It's not a bad-sized space, it's a kitchen/dining room, so that's good.
0:35:26 > 0:35:30Couple of things I see straightaway though which do
0:35:30 > 0:35:31cause me a bit of concern.
0:35:31 > 0:35:33Number one - very old radiator,
0:35:33 > 0:35:37my guess is maybe central heating system needs updating.
0:35:37 > 0:35:40Number two - really bad case of damp.
0:35:40 > 0:35:42Hmm, that's the neighbouring property.
0:35:42 > 0:35:44Intriguing, where's that coming from?
0:35:44 > 0:35:46Whatever, it needs to be sorted.
0:35:48 > 0:35:50Other than that and the woodchip wallpaper,
0:35:50 > 0:35:54the property is in generally good condition.
0:35:54 > 0:35:56It's the paperwork that may cause a bit of a headache.
0:35:58 > 0:36:03The property had, until last year, a 99-year lease.
0:36:03 > 0:36:06That has now expired.
0:36:06 > 0:36:09Hmm, interesting scenario, what does that mean?
0:36:09 > 0:36:12Well, it's good on the one hand that it will probably end up
0:36:12 > 0:36:15reverting to being a freehold property, it's bad on the other
0:36:15 > 0:36:18because you're going to actually have to put
0:36:18 > 0:36:21a lot of time and effort - or at least your solicitor is -
0:36:21 > 0:36:23into sorting out those issues.
0:36:23 > 0:36:26Which, of course, means money.
0:36:26 > 0:36:29But given that you'll always read the legal pack,
0:36:29 > 0:36:31at least you knew about it beforehand.
0:36:34 > 0:36:38Obviously this isn't the case with every leasehold.
0:36:38 > 0:36:40Normally, letting the lease run out isn't a good idea,
0:36:40 > 0:36:43but in this case the small print suggests that it
0:36:43 > 0:36:46works in favour of the property owners.
0:36:46 > 0:36:49I like to think that when this was being set up,
0:36:49 > 0:36:54the idea was that after 99 years these miners' cottages could revert
0:36:54 > 0:36:58to freehold cottages that went back to the miners or the community.
0:37:02 > 0:37:04So, at the back of the property...
0:37:04 > 0:37:07Well, before I get to the garden, how about this?
0:37:07 > 0:37:12This exterior may look like normal pebbledash, but if you hit it,
0:37:12 > 0:37:17it sounds a bit hollow, and what I reckon this is is wall insulation.
0:37:17 > 0:37:20There's a bit of a government directive to provide this
0:37:20 > 0:37:23kind of thing cos it makes the house a lot more energy efficient.
0:37:23 > 0:37:27It also creates quite a watertight exterior,
0:37:27 > 0:37:29so that's good, it's been done.
0:37:29 > 0:37:31Another thing to tick off the renovation list.
0:37:31 > 0:37:34But, back to that garden, and not a bad size,
0:37:34 > 0:37:39but it feels a lot bigger, cos look at that view! Fantastic.
0:37:42 > 0:37:46And apart from the great views, this is an ex-council property,
0:37:46 > 0:37:48that not only has wall insulation,
0:37:48 > 0:37:50but also these water-heating panels,
0:37:50 > 0:37:53which are included in the price of the property, making them
0:37:53 > 0:37:55a very desirable addition to the whole package.
0:38:00 > 0:38:03Now, I've been putting this off, but I still need to see the bedrooms.
0:38:06 > 0:38:10# I would walk 500 miles
0:38:10 > 0:38:14# And I would walk 500 more
0:38:14 > 0:38:18# Just to be the man who walks 1,000 miles
0:38:18 > 0:38:21# To fall down at your door
0:38:21 > 0:38:23- # Da-da-da-da!- Da-da-da-da!
0:38:23 > 0:38:25- # Da-da-da-da!- Da-da-da-da! #
0:38:27 > 0:38:28HE EXHALES DEEPLY
0:38:29 > 0:38:34Well, I don't know about 500 miles, but it feels like 500 steps!
0:38:34 > 0:38:36But when you get up here, what'd you find?
0:38:36 > 0:38:38Actually, two decent-sized bedrooms.
0:38:38 > 0:38:41That one there, fantastic views over the hills,
0:38:41 > 0:38:43and the front one here, well...
0:38:43 > 0:38:44HE CHUCKLES
0:38:44 > 0:38:45Look at it.
0:38:45 > 0:38:50Much bigger than you expect from the size of the property on the outside.
0:38:50 > 0:38:53So it just tops off what is already
0:38:53 > 0:38:55a pretty respectable little property.
0:38:58 > 0:38:59While I get my breath back,
0:38:59 > 0:39:03let's find out what potential a local property expert
0:39:03 > 0:39:06sees in this three-storey, two-bed terraced house.
0:39:07 > 0:39:10The property is a split-level property,
0:39:10 > 0:39:15so obviously two flights of stairs may limit the market slightly
0:39:15 > 0:39:18with the younger families with young children, and also the problems
0:39:18 > 0:39:22with anybody with mobility issues might limit that market a little.
0:39:22 > 0:39:26But generally, a good-sized property will open a few doors.
0:39:28 > 0:39:31So, what's the potential value once the property is done up?
0:39:33 > 0:39:36The potential resale value of this property would be
0:39:36 > 0:39:38in the region of £50,000.
0:39:38 > 0:39:42As a rental property, it could achieve £350 per calendar month.
0:39:44 > 0:39:48So, a pretty nice little house that just needs a bit of
0:39:48 > 0:39:50tender loving care and modernisation.
0:39:50 > 0:39:53Who fancied it when it went under the hammer?
0:39:54 > 0:39:59Lot number 14 is guided at 23,000. Start me, will you, 20,000?
0:39:59 > 0:40:0420 I've got, thank you. One can I see? 21, 22, 23, 24...
0:40:04 > 0:40:0925? 26, 27, 28, 29, 30.
0:40:09 > 0:40:1331? 31? No. At 30,000 then, standing...
0:40:13 > 0:40:15At 30 then for the first time...
0:40:15 > 0:40:18second time...third and last time at 30...
0:40:18 > 0:40:2231 - 30-and-a-half then, if you like.
0:40:22 > 0:40:25That half was just enough to do it.
0:40:25 > 0:40:28At 30-and-a-half then, seated, for the first time...
0:40:28 > 0:40:32second time...third and last time, 30,500...
0:40:32 > 0:40:35Yours, madam, your number, please.
0:40:35 > 0:40:37That extra £500 was enough to seal
0:40:37 > 0:40:43the deal at £30,500 for Cardiff couple Ray and Paul.
0:40:43 > 0:40:45Having recently left the army,
0:40:45 > 0:40:48Paul has started up a property maintenance business.
0:40:48 > 0:40:52However, it wasn't just the price that had attracted them to the area.
0:40:52 > 0:40:56# Zipping up my boots
0:40:56 > 0:40:59# Going back to my roots... #
0:40:59 > 0:41:01Ray, Paul, good to meet you both.
0:41:01 > 0:41:04- Hi.- All right?- Congratulations.
0:41:04 > 0:41:07So what was it about this particular place that appealed?
0:41:07 > 0:41:10It's on a commuter route to Cardiff,
0:41:10 > 0:41:15it's an area that's being regenerated, within our
0:41:15 > 0:41:19price budget, and also Paul has family connections to the area.
0:41:19 > 0:41:21His family grew up here,
0:41:21 > 0:41:26- his grandfather was born just a few streets away.- Oh, wow.
0:41:26 > 0:41:29- So, yeah, I suppose you've come back home, really.- Yeah.
0:41:32 > 0:41:35Paul has come back to his roots for the couple's first project,
0:41:35 > 0:41:38and apart from being familiar territory,
0:41:38 > 0:41:39this is an ideal starter project.
0:41:41 > 0:41:44So tell me what you're going to do to sort this place out.
0:41:46 > 0:41:52New kitchen, new bathroom put in, the rest of it is just redecoration,
0:41:52 > 0:41:55new woodwork and just sprucing it up, really.
0:41:55 > 0:41:58- Central heating improvements?- Yep, we've still got the back boiler here,
0:41:58 > 0:42:00so we intend to put a new combi boiler in.
0:42:00 > 0:42:03- Right.- So that should take the majority of our budgets.
0:42:03 > 0:42:05And who's going to do the work?
0:42:05 > 0:42:07- It'll have to be me. - MARTIN LAUGHS
0:42:07 > 0:42:10What will you be able to put your hand to?
0:42:10 > 0:42:11To be honest, most things.
0:42:11 > 0:42:15The only thing we wouldn't really be able to do would be the electrics
0:42:15 > 0:42:17if any need doing, and obviously the boiler.
0:42:17 > 0:42:20So what is the budget?
0:42:20 > 0:42:22Budgeting for about £5,000,
0:42:22 > 0:42:28but we are hoping to apply for a home improvement loan, which is
0:42:28 > 0:42:32being funded by the Welsh Assembly, so they're trying to help people
0:42:32 > 0:42:35regenerate the area as well and get the empty homes back into use.
0:42:35 > 0:42:38Brilliant, sounds like a good thing.
0:42:38 > 0:42:40- A cheaper rate loan or at least a loan.- Interest-free loan, yeah.
0:42:40 > 0:42:42So what timescale?
0:42:44 > 0:42:48- We're hoping three to four months. - It's all going to be on your back.
0:42:48 > 0:42:52- Oh, yes.- Can you do it in that time? - I don't see why I can't.
0:42:52 > 0:42:55With a bit of help, we've got fantastic parents
0:42:55 > 0:42:58and hopefully they can help with some childcare, which will help me
0:42:58 > 0:43:00to come up and give him a hand.
0:43:00 > 0:43:03- Listen, congratulations, good luck with it.- Thank you very much.
0:43:03 > 0:43:05Look forward to seeing how you get on.
0:43:08 > 0:43:11So, Ray and Paul choosing a place with family ties
0:43:11 > 0:43:14for their first property investment venture.
0:43:14 > 0:43:19How will they get along with that budget and that timescale?
0:43:19 > 0:43:21You can find out later in the show.
0:43:24 > 0:43:26We've seen how one of our buyers tackled their project -
0:43:26 > 0:43:30what about the other two? Did everything go according to plan?
0:43:30 > 0:43:31HE WHINES NONCOMMITTALLY
0:43:31 > 0:43:34- Martin, have some faith! - Oh, all right, let's find out.
0:43:38 > 0:43:41Tucked away on the Kent coastline is the pretty fishing town
0:43:41 > 0:43:44of Whitstable, and it's here that we cast our property nets
0:43:44 > 0:43:48and came up with a two-bed new style cottage overlooking
0:43:48 > 0:43:49a pleasant green.
0:43:49 > 0:43:51It was just five minutes' walk from the sea,
0:43:51 > 0:43:56so the all-important location was good, but the property?
0:43:56 > 0:44:03Well, how would I describe it? Small...compact...bijou.
0:44:03 > 0:44:06You get the picture - it wasn't the biggest of places,
0:44:06 > 0:44:09and the layout wasn't fantastic either,
0:44:09 > 0:44:12with a downstairs bathroom that was off the kitchen,
0:44:12 > 0:44:15in a lean-to, of all places.
0:44:17 > 0:44:18Come in, have a look at that.
0:44:18 > 0:44:21Really, are you going to have a bath in there?
0:44:21 > 0:44:23I don't think so.
0:44:23 > 0:44:24But actually, despite all its faults,
0:44:24 > 0:44:27it had a certain charm and character.
0:44:27 > 0:44:32It was bought for £146,000 by Brazil-born Zaira as
0:44:32 > 0:44:35a new home for her and her 12-year-old son Max.
0:44:35 > 0:44:38Not forgetting the dog Indy, of course.
0:44:41 > 0:44:44The only problem with this property is, it's very small.
0:44:44 > 0:44:48- Where's your son intending to sleep? - Well...
0:44:48 > 0:44:53the small second bedroom, I think I can fit a bed in there.
0:44:53 > 0:44:58The eaves, you can go actually go under, if you see the wall,
0:44:58 > 0:45:00- and be able to fit a bed.- So what are
0:45:00 > 0:45:02the immediate renovations you're going to be doing?
0:45:02 > 0:45:04The bathroom upstairs.
0:45:04 > 0:45:09So there's a metre-and-a-half of the eaves by three metres,
0:45:09 > 0:45:11and I think I can fit a bathroom there.
0:45:11 > 0:45:18- So when do you hope to move in? - In about two weeks.- Really?- Yes.
0:45:18 > 0:45:20So Zaira had come up with some clever ideas
0:45:20 > 0:45:22to maximise the cottage,
0:45:22 > 0:45:25but the change of layout would need planning approval,
0:45:25 > 0:45:28and Zaira had borrowed the money to purchase the cottage from
0:45:28 > 0:45:32a friend, while her old property was in the process of being sold.
0:45:32 > 0:45:36She was keen not to incur additional rental costs, and thought
0:45:36 > 0:45:39moving into her new home was the most cost-effective option.
0:45:39 > 0:45:44But renovation while living in a house is never easy, and now,
0:45:44 > 0:45:4915 months after our last visit, we're back to check on progress.
0:45:59 > 0:46:01Ah! A summer house has appeared,
0:46:01 > 0:46:05in a rejuvenated garden space that should give them a bit more room.
0:46:05 > 0:46:06But what about inside?
0:46:12 > 0:46:16Well, they've clearly moved in, and in the front home the
0:46:16 > 0:46:20chimney breast has been removed to give a few more precious inches.
0:46:20 > 0:46:23But it was upstairs where the main work was initially planned,
0:46:23 > 0:46:25so what's it looking like?
0:46:28 > 0:46:32Well, the master bedroom... Uh, well, it's got a bed in it!
0:46:32 > 0:46:37And the really small bedroom that was for 12-year-old Max...
0:46:37 > 0:46:42Oh, well, that's looking a whole lot better, and a little bigger.
0:46:42 > 0:46:44This room was a challenge, it was very tiny,
0:46:44 > 0:46:48and to begin with we couldn't even fit a single bed in here,
0:46:48 > 0:46:51so the way around it was to get the eaves pushed back,
0:46:51 > 0:46:54and now we can fit a nice size single bed in there,
0:46:54 > 0:46:56and then this side, again,
0:46:56 > 0:47:01had a wall here which was empty over the stairs, pushed it back,
0:47:01 > 0:47:04and it's going to be fitted with shelving, clothes,
0:47:04 > 0:47:07storage and books for my son.
0:47:08 > 0:47:12Zaira has made some progress up here, but the main task was to
0:47:12 > 0:47:17make room for a bathroom under the eaves, so what happened to that?
0:47:17 > 0:47:20We had to put an application through the council,
0:47:20 > 0:47:24and about nine months after I bought the house...
0:47:24 > 0:47:27eight weeks later the council refused,
0:47:27 > 0:47:30saying you have to reapply with very little change,
0:47:30 > 0:47:33and then it takes another eight weeks for them to approve.
0:47:33 > 0:47:36So that just happened a few weeks ago.
0:47:36 > 0:47:40Well, finally then Zaira has got the green light to go ahead with
0:47:40 > 0:47:42an upstairs bathroom,
0:47:42 > 0:47:46but what's it been like living in a house you're still working on?
0:47:46 > 0:47:50I think the major problem is the bathroom's not very nice,
0:47:50 > 0:47:54so we had to spend a lot of time at a friend's house.
0:47:54 > 0:47:58We'd go for a visit and stay for a shower!
0:47:58 > 0:47:59And the kitchen as well,
0:47:59 > 0:48:02we can't really bake anything, it has to be a dish with two...
0:48:02 > 0:48:04two-plate dish!
0:48:04 > 0:48:06Well, I don't envy Zaira,
0:48:06 > 0:48:10she's still got most of the major work ahead of her.
0:48:10 > 0:48:13I'm going to knock down the small kitchen with the dining room
0:48:13 > 0:48:16and make it into a bigger kitchen/diner.
0:48:16 > 0:48:19We haven't done that yet, it's a lot of mess,
0:48:19 > 0:48:23and because I live in the property, we're kind of waiting for it
0:48:23 > 0:48:27all to be the same week where the bathroom and kitchen get done.
0:48:27 > 0:48:32I can probably stay with friends for a few days, all in one go,
0:48:32 > 0:48:35otherwise it's very hard for us to cope.
0:48:35 > 0:48:36She's also hoping once the bathroom
0:48:36 > 0:48:39and kitchen are finished to put a conservatory on the back
0:48:39 > 0:48:43of the house, replacing that rather sorry lean-to.
0:48:43 > 0:48:45But all her plans are dependent on money,
0:48:45 > 0:48:50and the key to her finances was selling her old house in Whitstable.
0:48:50 > 0:48:53I put my house on the market immediately,
0:48:53 > 0:49:00sold in a few weeks, and then took about a month-and-a-half
0:49:00 > 0:49:05for the money to go through, and so that's when I paid my friend.
0:49:06 > 0:49:09So with one debt repaid, how much is she looking to
0:49:09 > 0:49:13spend on the cottage to get it looking how she wants?
0:49:13 > 0:49:14My original budget was 25,000.
0:49:14 > 0:49:17I think - of course I haven't finished the house yet,
0:49:17 > 0:49:23so hopefully, I will stick to it, give or take a few thousand!
0:49:23 > 0:49:29A £25,000 budget on top of her £146,000 purchase price
0:49:29 > 0:49:34will take Zaira's spend to £171,000.
0:49:34 > 0:49:37So, will all the dust and disruption be worth it in the end?
0:49:37 > 0:49:40What do two local estate agents think?
0:49:40 > 0:49:44At the moment it doesn't really provide what people would
0:49:44 > 0:49:46want from a modern house.
0:49:46 > 0:49:49The bathroom's very small, the kitchen's very small.
0:49:49 > 0:49:52But certainly there are things you could do to overcome that.
0:49:52 > 0:49:56Garden's very nice, position's good, looking across the green,
0:49:56 > 0:49:59and the cottage style is very popular in Whitstable,
0:49:59 > 0:50:01so it has got potential there.
0:50:01 > 0:50:05Obviously the cottage is far from finished, and in particular, there
0:50:05 > 0:50:09is the upstairs bathroom to install and improvements to the kitchen.
0:50:09 > 0:50:12But what might the value of the house be once she's done
0:50:12 > 0:50:15her £25,000 worth of work?
0:50:15 > 0:50:21I think the property could achieve somewhere in the region of £225,000.
0:50:21 > 0:50:24If it was renovated, and allowing for the slight alteration
0:50:24 > 0:50:30upstairs with the bathroom, then I'd suggest a figure of £220-225,000.
0:50:30 > 0:50:34So, potentially a pre-tax profit of between 49,000 and 54,000,
0:50:34 > 0:50:38minus the usual taxes and expenses.
0:50:38 > 0:50:41But what does Zaira think about the valuation figures?
0:50:41 > 0:50:45Oh... No, don't like it.
0:50:45 > 0:50:49I think if it was completely done, I probably would get more.
0:50:49 > 0:50:53Yes, well, it's difficult really to judge the true value of the cottage
0:50:53 > 0:50:57at this stage, and anyway, Zaira isn't looking to sell any time soon.
0:50:57 > 0:50:59But despite the upheaval,
0:50:59 > 0:51:03would she be tempted to tackle any more property projects?
0:51:03 > 0:51:07If I was by myself I would do it again sooner, but I have to
0:51:07 > 0:51:10wait for my son to go off to university, then I can do it again.
0:51:15 > 0:51:19Next up, we wave goodbye to Whitstable and whizz to Wales.
0:51:19 > 0:51:22Nestled in the Valleys 20 miles north of Cardiff
0:51:22 > 0:51:24is the town of Penrhiwceiber.
0:51:24 > 0:51:27It was here that we came across a two-bed mid terrace house
0:51:27 > 0:51:29with hidden depths.
0:51:29 > 0:51:32On the face of it, this was a conventional two-storey house,
0:51:32 > 0:51:35but get inside and things weren't quite what they appeared.
0:51:37 > 0:51:39Stairs down and stairs up.
0:51:41 > 0:51:43Got to be explored.
0:51:43 > 0:51:46With the kitchen on the ground floor and the living room
0:51:46 > 0:51:50and bathroom at street level, and two bedrooms upstairs,
0:51:50 > 0:51:54you need to be a bit buff and have a lot of puff to make the most of it.
0:51:56 > 0:51:57HE EXHALES DEEPLY
0:51:57 > 0:52:01'Oof, I really do need to get back into training.'
0:52:01 > 0:52:04With stunning views to the rear, good-sized garden
0:52:04 > 0:52:09and actually plenty of space, this house had a lot going for it.
0:52:09 > 0:52:14And it was bought at auction for £30,500 by Paul and Ray,
0:52:14 > 0:52:17as the couple's first development project.
0:52:17 > 0:52:21So what was it about this particular place that appealed?
0:52:21 > 0:52:24It's on a commuter route to Cardiff, so close for people back
0:52:24 > 0:52:29and forth to work, and also Paul has family connections to the area.
0:52:29 > 0:52:30His family grew up here,
0:52:30 > 0:52:33his grandfather was born just a few streets away.
0:52:33 > 0:52:40- Oh, wow.- So yeah, I suppose you've come back home really.- Yeah.
0:52:40 > 0:52:44And the couple had a relatively small budget of £5-7,500,
0:52:44 > 0:52:46and a timescale of three to four months,
0:52:46 > 0:52:51with ex-army man Paul doing the majority of the refurbishment.
0:52:51 > 0:52:54And now, seven months later, we're back to see
0:52:54 > 0:52:55if it's fit for inspection.
0:52:58 > 0:53:02OK, so eyes front, all looking good there.
0:53:02 > 0:53:05But let's go inside and work from the lower ground up.
0:53:14 > 0:53:16Well, that's a big improvement.
0:53:19 > 0:53:22The kitchen, we took the old, dated units out
0:53:22 > 0:53:27and put more modern units in, new flooring in,
0:53:27 > 0:53:31replaced the back door, which was damaged, and painted it.
0:53:33 > 0:53:36And moving up the house to the ground floor...
0:53:38 > 0:53:42In the living room we took the wallpaper off and redecorated,
0:53:42 > 0:53:45carpeted throughout with some new radiators as well.
0:53:50 > 0:53:54And the bathroom on this floor has also been completely refurbished.
0:53:54 > 0:53:57So what about that final storey?
0:53:57 > 0:54:00Going up to the top floor, it's completely re-painted.
0:54:00 > 0:54:04I'll have to re-plaster one of the walls.
0:54:04 > 0:54:07There's new radiators put in there and it's been painted
0:54:07 > 0:54:12and decorated, plus we've put new doors all round.
0:54:12 > 0:54:15So the place has been finished fantastically from top
0:54:15 > 0:54:17to bottom, or is that bottom to top?
0:54:17 > 0:54:20I'm not sure, but clearly, there has been a lot of work.
0:54:22 > 0:54:25Paul's done the vast majority of work himself.
0:54:25 > 0:54:29Obviously we needed to get a plumber in to do the pipework for the
0:54:29 > 0:54:31new radiators and then we had somebody in
0:54:31 > 0:54:33to fit the carpets for us.
0:54:33 > 0:54:35I've had some friends and family help.
0:54:35 > 0:54:38Nearly all of this has been myself.
0:54:38 > 0:54:41There are some minor leak and damp issues that Paul
0:54:41 > 0:54:45and Ray need to resolve, but in essence, the house is ready to go.
0:54:45 > 0:54:46What about that paperwork?
0:54:46 > 0:54:49And I don't mean the woodchip they had to tackle.
0:54:53 > 0:54:57When we first bought the house there was a 99-year lease which had
0:54:57 > 0:55:00just literally expired on the property.
0:55:00 > 0:55:05That automatically reverted to a freehold, all to do with control
0:55:05 > 0:55:08of the mining works below ground, but since that's now exhausted,
0:55:08 > 0:55:12they were happy to release it, so it's now fully freehold.
0:55:13 > 0:55:16Well, that's great, and just by getting the freehold
0:55:16 > 0:55:19they should have added value to the house.
0:55:19 > 0:55:21But with Paul busy on other projects,
0:55:21 > 0:55:25their hoped-for three to four month timescale went out the window.
0:55:25 > 0:55:26So, how's their budget looking?
0:55:29 > 0:55:34Initially, we budgeted £5-7,500.
0:55:34 > 0:55:37Due to the fact that Paul has done almost everything himself,
0:55:37 > 0:55:39we've managed to save on a lot of costs, and we've actually
0:55:39 > 0:55:45come in about £3,000, without totting everything up on a calculator.
0:55:45 > 0:55:47A £3,000 spend is impressive,
0:55:47 > 0:55:50and added to their £30,500 purchase price,
0:55:50 > 0:55:56their first development project so far has cost them £33,500,
0:55:56 > 0:56:00and they've also decided to rent out the house rather than sell it on.
0:56:00 > 0:56:05So, is that the right decision? What do two local estate agents think?
0:56:05 > 0:56:10This is my second visit to the property, it appears to have
0:56:10 > 0:56:13had a fairly successful redevelopment over the past months
0:56:13 > 0:56:17since the first visit, it's in a much better shape.
0:56:17 > 0:56:20It's a good standard of finish to the property,
0:56:20 > 0:56:23nice plastered walls and clean lines throughout.
0:56:24 > 0:56:26Well, they do seem to have paced this house right,
0:56:26 > 0:56:29but how is it working from an investment point of view?
0:56:29 > 0:56:35Having so far spent £33,500, what might it resell for?
0:56:36 > 0:56:40If it was to be put to the sales market, to be competitive with
0:56:40 > 0:56:43other houses in the area, I would advise an asking price of £45,000.
0:56:43 > 0:56:49We'd put this on the open market for £37,500.
0:56:49 > 0:56:52And look to achieve £45,000.
0:56:52 > 0:56:55Yeah, that's pretty much... About the 45,000 mark for the area.
0:56:57 > 0:57:03A valuation of £45,000 would give a potential pre-tax profit
0:57:03 > 0:57:09of £11,500, but the resale market is slow in the local area.
0:57:09 > 0:57:12So, Ray and Paul have decided the letting market is more
0:57:12 > 0:57:14suited for the house.
0:57:14 > 0:57:20I would advise a rental in the region of £350-375 per calendar month.
0:57:20 > 0:57:23If the property was placed on the rental books then we'd
0:57:23 > 0:57:27probably look in the region of £335 per calendar month.
0:57:27 > 0:57:30335 is probably a little low,
0:57:30 > 0:57:34but we're quite confident we could get 375.
0:57:34 > 0:57:40Even that lower £335 figure would produce a healthy rental yield
0:57:40 > 0:57:44in the region of 12%. Not bad as a starting point.
0:57:46 > 0:57:51For our first investment property, I'd say it's been an eye-opener
0:57:51 > 0:57:54and a good learning curve.
0:57:54 > 0:57:56Yeah, we'd have no hesitations to do it again,
0:57:56 > 0:57:58it's worked out really well so far.
0:58:01 > 0:58:02So, from Martin and me, that's it.
0:58:02 > 0:58:05Yes, but join us next time for more stories from the auctions
0:58:05 > 0:58:07here on Homes Under the Hammer.
0:58:07 > 0:58:10- Look forward to seeing you then. - Goodbye.- Goodbye.