0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:06Now, Martin and I love a bargain, but it's not always easy
0:00:06 > 0:00:08spotting one in the housing market.
0:00:08 > 0:00:13No, but one way to better your chances is to do your research
0:00:13 > 0:00:16and, a good way to do that is to visit your local property auction.
0:00:43 > 0:00:45In the auction room, you'll be spoilt for choice.
0:00:45 > 0:00:49But, remember, other bidders may want your property, too.
0:00:49 > 0:00:54The trick is to have a budget and to stick to it.
0:00:54 > 0:00:57So, what caught the eye of the bidders on today's show?
0:00:58 > 0:01:00First up, there's a surprise in store
0:01:00 > 0:01:03in West Bromwich in the West Midlands.
0:01:03 > 0:01:04Looking around and...
0:01:04 > 0:01:06- BANG - Whoa! What was that?
0:01:07 > 0:01:11Whilst in Gillingham, Kent, there's plenty of space to play with.
0:01:11 > 0:01:13Not enough to stable a horse,
0:01:13 > 0:01:17but quite enough to take a more substantial property? Come on!
0:01:18 > 0:01:19And in Telford, Shropshire,
0:01:19 > 0:01:22it's time for the kids to earn their keep.
0:01:22 > 0:01:26- Does Ella get paid? - We feed her food at night, yes.
0:01:26 > 0:01:28Oh, thanks, Dad!
0:01:29 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:33We'll find out who bought them and what they paid
0:01:33 > 0:01:35when they went under the hammer.
0:01:35 > 0:01:37One, two, three... HE BANGS HAMMER
0:01:44 > 0:01:48If you're anything like me, when you hear the words "West Bromwich",
0:01:48 > 0:01:52you immediately expect them to be followed with another word - Albion.
0:01:52 > 0:01:56The town of West Bromwich, in the West Midlands, is of course
0:01:56 > 0:01:58well known for its world-famous football team,
0:01:58 > 0:02:00West Bromwich Albion, which,
0:02:00 > 0:02:05along with its local rivals Aston Villa and Wolverhampton Wanderers,
0:02:05 > 0:02:10was one of the 12 founding members of the Football League in 1888.
0:02:10 > 0:02:12- # Can I kick it? - Yes, you can
0:02:12 > 0:02:15- # Er, you can - Yes, you can
0:02:15 > 0:02:16- # Can I kick it? - Yes, you can...- #
0:02:16 > 0:02:18Well, sticking with the sporting theme,
0:02:18 > 0:02:23West Bromwich is also the birthplace of Olympic heptathlete
0:02:23 > 0:02:26Denise Lewis, so it is fitting that the property I'm here to see
0:02:26 > 0:02:30is just a hop, skip and a jump away from the town centre.
0:02:30 > 0:02:33And this is it. It's a three-bed end-of-terrace.
0:02:33 > 0:02:36Guide price, £49,000-£54,000.
0:02:36 > 0:02:39On your marks, get set... let's go inside.
0:02:41 > 0:02:43Well, the first hurdle is the exterior.
0:02:43 > 0:02:46And this one isn't looking bad at all.
0:02:46 > 0:02:48But will the interior be a winner?
0:02:52 > 0:02:53So, what have we got?
0:02:53 > 0:02:56Double glazing for one thing, which is always a good start.
0:02:56 > 0:02:59Entrance area here, stairs up to your bedrooms there.
0:02:59 > 0:03:02Front sitting room looks to be pretty decent condition,
0:03:02 > 0:03:03it's a pretty nice size.
0:03:03 > 0:03:08And then, down this little corridor, to what is a bit of a joy.
0:03:08 > 0:03:11Obviously been knocked through at some stage
0:03:11 > 0:03:16to create this really lovely kitchen/dining/living area.
0:03:16 > 0:03:19It is a very practical kind of room for modern living.
0:03:19 > 0:03:21Yes, it needs a bit of work, yes, you want to
0:03:21 > 0:03:24take all these units out, but it's got doors out onto the garden,
0:03:24 > 0:03:27it's got the right amount of space, it feels solid.
0:03:27 > 0:03:28Great start.
0:03:31 > 0:03:34There's a lovely flow to the downstairs
0:03:34 > 0:03:37and not too much obvious work to be done.
0:03:37 > 0:03:41Plus, that kitchen-diner is bound to appeal to families. Good stuff.
0:03:43 > 0:03:45Well, upstairs, and the very practical,
0:03:45 > 0:03:48sort of liveable layout, continues.
0:03:48 > 0:03:51Bathroom and loo at the top of the stairs, where you'd hope.
0:03:51 > 0:03:54Nice-sized sort of landing area,
0:03:54 > 0:03:56which gives a nice feeling of sort of space.
0:03:56 > 0:04:00Three bedrooms, the one there at the front - not massive.
0:04:00 > 0:04:02Another one there, which is a slightly better size.
0:04:02 > 0:04:05And then a large double bedroom at the back, here.
0:04:05 > 0:04:08And the great thing about ex-local authority properties,
0:04:08 > 0:04:10it's all solidly built and lots of storage.
0:04:11 > 0:04:12Hmmm.
0:04:14 > 0:04:15Hmmm.
0:04:15 > 0:04:19Here's a tip. When you're visiting properties, always make sure
0:04:19 > 0:04:23you look in the cupboards, because that's a really nasty crack there.
0:04:24 > 0:04:27Actually, now I start looking around, and...
0:04:27 > 0:04:29- BANG - Whoa! What was that?
0:04:29 > 0:04:32Apart from the exploding floorboards...
0:04:32 > 0:04:36what is that in the corner?
0:04:36 > 0:04:39Erm, nasty crack in the wall!
0:04:39 > 0:04:43I hope that wasn't the sound of this part of the house
0:04:43 > 0:04:45collapsing a bit more!
0:04:45 > 0:04:49Because it might actually happen. That is really bad.
0:04:49 > 0:04:52That needs investigating. What a shame.
0:04:52 > 0:04:55And it was all going so well!
0:04:55 > 0:04:59# Till the walls come tumblin' down... #
0:04:59 > 0:05:04Now, before any panic sets in, these cracks could well be historical
0:05:04 > 0:05:07and not a sign of the dreaded subsidence.
0:05:07 > 0:05:10Just make sure you get it checked.
0:05:10 > 0:05:14So much for my assertion that all council houses are solidly built.
0:05:14 > 0:05:17Well, there is always an exception to the rule.
0:05:17 > 0:05:21I say this with some trepidation, but you can usually
0:05:21 > 0:05:25rely on generous gardens in ex-local authority housing.
0:05:26 > 0:05:28Well, out the back door of the property,
0:05:28 > 0:05:30and a very ramshackle sort of lean-to thing.
0:05:30 > 0:05:32You'd want to get rid of that.
0:05:32 > 0:05:35A little greenhouse, and then, through to the garden.
0:05:35 > 0:05:39The great thing about corner plots, is that, generally, you've got
0:05:39 > 0:05:42a half-decent-sized garden and that's certainly the case here.
0:05:42 > 0:05:44But you have only seen the half of it.
0:05:44 > 0:05:47Look at this. Fantastic! It's massive.
0:05:47 > 0:05:51But, better than that, is that gate. Why be so excited?
0:05:51 > 0:05:55Because, that gate leads to an access road.
0:05:55 > 0:05:57So suddenly, what is this?
0:05:57 > 0:06:01Is not just a garden, it's a potential building plot.
0:06:01 > 0:06:03Wow!
0:06:03 > 0:06:06Yes, this house has definitely won me back over.
0:06:06 > 0:06:08The potential in the back here is very exciting,
0:06:08 > 0:06:11especially when you consider that all of this,
0:06:11 > 0:06:17and the house, is on for a guide price of £49,000-£54,000.
0:06:18 > 0:06:20What does a local estate agent make of the property?
0:06:21 > 0:06:24There's various different options for the vendor.
0:06:24 > 0:06:26There's some planning potential to the rear,
0:06:26 > 0:06:27there's a very big garden.
0:06:27 > 0:06:30There's cosmetic work that needs to be done to the property,
0:06:30 > 0:06:32with the kitchen, bathroom, etc.
0:06:32 > 0:06:35And, upstairs, there's cracking that needs to be looked at further.
0:06:35 > 0:06:38What could this property sold for if it was renovated?
0:06:38 > 0:06:41Once the house is fully refurbished, it could be worth
0:06:41 > 0:06:44anywhere between £110,000 to £115,000, depending on
0:06:44 > 0:06:46the condition of the refurbishments.
0:06:46 > 0:06:47And rental?
0:06:48 > 0:06:51Once refurbished, I think the property would command
0:06:51 > 0:06:55a rental figure of £550-£600 per calendar month,
0:06:55 > 0:06:57depending on the condition of the refurb.
0:06:57 > 0:07:01So far, so straightforward. But what about that garden becoming a plot?
0:07:01 > 0:07:05Would there be mileage in building, say, a two-bed bungalow?
0:07:05 > 0:07:08A new two-bed bungalow would cost something between
0:07:08 > 0:07:11£75,000-£90,000, depending on how, obviously,
0:07:11 > 0:07:13the spec of the bungalow and the condition of it.
0:07:14 > 0:07:18Well, apart from the cracks, it's a nice enough house.
0:07:18 > 0:07:20But, go round the back,
0:07:20 > 0:07:22see that plot of land and suddenly,
0:07:22 > 0:07:25it's a really interesting investment opportunity.
0:07:25 > 0:07:28Let's see who we agreed, when it went under the hammer.
0:07:33 > 0:07:37Three-bedroomed, freehold, end-terraced house.
0:07:37 > 0:07:41Where shall we start, folks?
0:07:41 > 0:07:4540. Thank you, sir. At 40,000, I am bid.
0:07:45 > 0:07:49Is it 50, now? At 50, thank you, sir, at 50. Do I have 60, now?
0:07:50 > 0:07:5455 is that, sir? Thank you, 55. First one to 60, then?
0:07:54 > 0:07:5760 out at my left. Thank you, sir, at 60.
0:07:57 > 0:08:00With this lot proving popular in a packed auction house,
0:08:00 > 0:08:04we leave and rejoin at £85,000.
0:08:04 > 0:08:07At £85,000...
0:08:07 > 0:08:1086. 87.
0:08:10 > 0:08:13He is saying no, that could be the killer blow.
0:08:13 > 0:08:14At £86,000...
0:08:14 > 0:08:19Whoa. Only because you've been such a good bidder.
0:08:19 > 0:08:2286 and a half. 87. 87 and a half, no?
0:08:22 > 0:08:2687,000, one, two, three,
0:08:26 > 0:08:30that's yours. What a great contest. Congratulations, gentlemen.
0:08:30 > 0:08:34The successful bid of £87,000 was made just out of shot,
0:08:34 > 0:08:37and belonged to father-and-son team, Paul and Ryan.
0:08:38 > 0:08:42Paul is an experienced property developer, so he must have known
0:08:42 > 0:08:44what he was doing when he paid
0:08:44 > 0:08:48over £30,000 above the guide price.
0:08:49 > 0:08:53I met up with him and his son, Ryan, not forgetting Bella the Labrador,
0:08:53 > 0:08:56back at the property to find out more.
0:08:56 > 0:09:00- Paul, Ryan, great to meet you both. - And you.- Congratulations.
0:09:00 > 0:09:03- Thank you.- Tell me why you wanted to buy this house.
0:09:03 > 0:09:07We've got a few properties in the area, so I know the street well,
0:09:07 > 0:09:10- in fact, we've got one four doors down from this.- Oh, great.
0:09:10 > 0:09:15And we were aware of the property, but we literally, at the last minute,
0:09:15 > 0:09:17decided to focus on the property
0:09:17 > 0:09:19because of the large building plot at the back.
0:09:19 > 0:09:21It's a bit of a classic auction lot -
0:09:21 > 0:09:22if you hadn't come to see it,
0:09:22 > 0:09:25you might not have realised the potential out the back.
0:09:25 > 0:09:27Well, we did buy this one blind.
0:09:27 > 0:09:30- You did?!- Yes, we did, yes, yes. I don't advise it.
0:09:30 > 0:09:34Done it twice now, and both times, sleepless nights...
0:09:34 > 0:09:36not recommended to anybody. But, again,
0:09:36 > 0:09:40because we've got a property close by, it was, sort of...
0:09:40 > 0:09:43we generally know the knowledge of the properties anyway.
0:09:43 > 0:09:47So, it was a hedged bet, for want of a better word.
0:09:47 > 0:09:49And, er, luckily enough, we came in and...
0:09:49 > 0:09:52- So, did you know about the plot, then?- I was aware of the plot,
0:09:52 > 0:09:56but I didn't realise it was as big as it was until, literally,
0:09:56 > 0:09:59an hour before the auction, we stuck our head over the fence,
0:09:59 > 0:10:03saw what it was, shot up there and, literally, an hour later,
0:10:03 > 0:10:05- we were buying the property.- Wow.
0:10:05 > 0:10:09Well, they say fortune favours the brave, but trust me,
0:10:09 > 0:10:12don't put that to the test when it comes to property.
0:10:12 > 0:10:13# You win some
0:10:13 > 0:10:16# You might get lucky now and then... #
0:10:16 > 0:10:20Paul has been lucky here, even though he has paid
0:10:20 > 0:10:23more than he would have liked. But he is extremely lucky
0:10:23 > 0:10:26in that Ryan is an electrician.
0:10:26 > 0:10:29Were you brought into the business, or did you just grow up with Dad?
0:10:29 > 0:10:32No, I've done an apprenticeship. You gave me the opportunity
0:10:32 > 0:10:35to come and work with you and that's when it started from, really.
0:10:35 > 0:10:38- Great.- I mean, your son wants to work with you, what a better team?
0:10:38 > 0:10:41- Yeah, it's brilliant.- Yeah. - And is it going all right?
0:10:41 > 0:10:44- Yeah, it's going well. - Most of the time!
0:10:44 > 0:10:46Ryan's a 17th edition electrician,
0:10:46 > 0:10:50so, from an electrical point of view, he can cover all of those things.
0:10:50 > 0:10:52He's now trying to expand his skill base,
0:10:52 > 0:10:55learning to do the plastering, the plumbing,
0:10:55 > 0:10:56helping fit the kitchens.
0:10:56 > 0:10:59So, we generally work as a team.
0:10:59 > 0:11:03So, tell me what the plans for the property are?
0:11:03 > 0:11:06We're intending stripping it all back to the brick, dry lining,
0:11:06 > 0:11:10new kitchen, new bathroom. And generally just bringing the property
0:11:10 > 0:11:11up to date to where it is now.
0:11:11 > 0:11:13There's a few investigations we've got to do,
0:11:13 > 0:11:16there's been a bit of movement in the property.
0:11:16 > 0:11:18What do you think's going on there?
0:11:18 > 0:11:21I think they're historic, but, just to satisfy that there's nothing
0:11:21 > 0:11:24sinister going on, we will excavate where we think
0:11:24 > 0:11:27the common cause is, just to make sure everything is as it should be.
0:11:27 > 0:11:32And, all being well, it should be a cosmetic fix-up, really,
0:11:32 > 0:11:34- would be the best way to describe it?- Yes.
0:11:34 > 0:11:37And then we intend to put, hopefully,
0:11:37 > 0:11:40- two semi-detached bungalows on the back of the property.- Great.
0:11:40 > 0:11:44- It lends itself perfectly to that. - Any ballpark figures?
0:11:44 > 0:11:47What it might cost to get the planning, to get the architects
0:11:47 > 0:11:48and then to actually build?
0:11:48 > 0:11:51I'd imagine about 50,000 per unit.
0:11:51 > 0:11:54So, probably the total bill will be about £100,000,
0:11:54 > 0:11:57and then, hopefully, a resale of about 250.
0:11:57 > 0:11:58Great.
0:11:58 > 0:12:02Paul is pretty confident, due to his local knowledge,
0:12:02 > 0:12:04that he will get planning permission.
0:12:04 > 0:12:05Once that's achieved, he hopes
0:12:05 > 0:12:08to start the work on the bungalows within a year,
0:12:08 > 0:12:12and envisages it taking around 12 months to complete the build.
0:12:13 > 0:12:15For the house itself,
0:12:15 > 0:12:18they've set a six-week timescale and a tight £6,000 budget.
0:12:18 > 0:12:21And what's more, they already have a tenant lined up.
0:12:23 > 0:12:25We have got a tenant,
0:12:25 > 0:12:28she's waiting for us to refurb the property to move in.
0:12:28 > 0:12:31- But how nice you've got somebody lined up already!- Yes, yes.
0:12:31 > 0:12:34She's a nice lady and I think she will live quite happily here.
0:12:34 > 0:12:37- Well, congratulations.- Thank you. - Well done.- Thank you.
0:12:37 > 0:12:40- Really nice to meet you both.- Thank you.- Good luck with it.- Cheers.
0:12:41 > 0:12:45So, Paul and Ryan leaving it a little bit late to see
0:12:45 > 0:12:48the property, just an hour before the auction. Tut-tut!
0:12:48 > 0:12:51But at least during that time they saw the potential,
0:12:51 > 0:12:55especially of the plot of land. But those cracks, they still worry me.
0:12:55 > 0:12:58What will they find when they start digging around?
0:12:58 > 0:13:00You can find out later in the show.
0:13:07 > 0:13:09We go now to Gillingham, in Kent.
0:13:12 > 0:13:16It was here, in July 2013, that I originally
0:13:16 > 0:13:19looked around this detached, two-bedroom bungalow...
0:13:21 > 0:13:26..that had a guide price of £190,000-£200,000.
0:13:26 > 0:13:30As expected, in this little bungalow, look at this -
0:13:30 > 0:13:32it needs decorating, it needs attention.
0:13:32 > 0:13:36There's a big old crack along there, so I'd get that looked at.
0:13:36 > 0:13:40But, on the positive side, what I do love is the fact
0:13:40 > 0:13:43that I can see into every single room from standing here.
0:13:43 > 0:13:47It makes it very welcoming and I do like a nice, open hallway.
0:13:47 > 0:13:49I'd say that's a bedroom,
0:13:49 > 0:13:52we've got a bathroom which will need completely updating.
0:13:52 > 0:13:55A great kitchen, a lovely size.
0:13:55 > 0:13:57I mean, there's a lot you can do with that.
0:13:57 > 0:14:01And through here, you've got the sitting room, the lounge area,
0:14:01 > 0:14:03whatever you like to call it. You could have a dining room.
0:14:03 > 0:14:07A lot of work to do, and it's very spacious. I do like it.
0:14:10 > 0:14:13Yes, it was in need of some real elbow grease,
0:14:13 > 0:14:17but it had plenty of positives, including a big front garden,
0:14:17 > 0:14:20perfect for converting into off-road parking.
0:14:20 > 0:14:23But, the real bonus was still to come.
0:14:27 > 0:14:28SHE GASPS
0:14:28 > 0:14:31Well, out the back is a significant parcel of land,
0:14:31 > 0:14:350.388 acres, in fact! Look, it's huge!
0:14:35 > 0:14:36Not enough to stable a horse,
0:14:36 > 0:14:40but quite enough to take a more substantial property?
0:14:40 > 0:14:42Come on, we're all thinking it.
0:14:42 > 0:14:47This is a perfect plot for a bigger and better house than this bungalow.
0:14:47 > 0:14:50Now, you could renovate, you could extend,
0:14:50 > 0:14:53it's worth thinking about, but knocking this place down
0:14:53 > 0:14:55and making the most of this plot
0:14:55 > 0:14:57is more than worth a thought, as well.
0:15:02 > 0:15:05My creative juices were flowing.
0:15:05 > 0:15:06So my first thoughts,
0:15:06 > 0:15:09a straightforward refurbishment of the bungalow -
0:15:09 > 0:15:11barking up the wrong tree!
0:15:11 > 0:15:15As with everything in the property game, it always comes down to maths.
0:15:17 > 0:15:21Say you bought the bungalow for the guide price, around £200,000.
0:15:21 > 0:15:26You knocked it down, built a four or five bedroom place, did it nicely,
0:15:26 > 0:15:32high-spec. How much are you going to spend? 200K? Maybe more?
0:15:32 > 0:15:36So, you're into a £400,000 project.
0:15:36 > 0:15:39If you go by the rule that you should spend a third
0:15:39 > 0:15:41on your land, a third on your build costs
0:15:41 > 0:15:44and you walk away with a third as profit,
0:15:44 > 0:15:47you'd be hoping to sell for £600,000,
0:15:47 > 0:15:51and I simply can't see a house here making that sort of money.
0:15:51 > 0:15:53You can pick up a large family home
0:15:53 > 0:15:56for well under 500 grand on this road,
0:15:56 > 0:16:00which makes me think maybe this bungalow is worth working with.
0:16:01 > 0:16:04So a new build or the bungalow on a huge
0:16:04 > 0:16:07and pleasant plot seemed the right way to go.
0:16:08 > 0:16:12Do you renovate, do you demolish? What would you build here? Hmm.
0:16:12 > 0:16:14Let's see who had some ideas at the auction.
0:16:16 > 0:16:18Really, really super lot, this one.
0:16:18 > 0:16:21Detached bungalow on a really large plot, over a third of an acre.
0:16:21 > 0:16:23Where d'you want to start me on this one?
0:16:23 > 0:16:26190 would be a good place to start. Start me on 180, then.
0:16:26 > 0:16:28180. 180, I'm on the way.
0:16:28 > 0:16:31I've got you on the left-hand side, 180. And five?
0:16:31 > 0:16:35185. 185. 190, and five.
0:16:35 > 0:16:37195, and two.
0:16:37 > 0:16:42The bids came in fast and furious, With several bidders involved.
0:16:42 > 0:16:45We rejoined at 244,000.
0:16:45 > 0:16:47Coming back again now, you need to do it quickly.
0:16:47 > 0:16:53245? 245 I have. 246, it's against you on the internet. 246.
0:16:53 > 0:16:55It's in the room, it's not on the internet,
0:16:55 > 0:16:59but just to let you know, at 245, for the first time,
0:16:59 > 0:17:01245 for the second.
0:17:01 > 0:17:04Third and final time, you're sure you're all done?
0:17:04 > 0:17:07It's yours, sir, at £245,000 in the room.
0:17:07 > 0:17:12MUSIC: A Town Called Malice by The Jam
0:17:12 > 0:17:16That successful bid of £245,000 belonged to Joe.
0:17:16 > 0:17:19He had worked in IT for 25 years
0:17:19 > 0:17:22before becoming a teacher for five years,
0:17:22 > 0:17:25and then deciding on another career change,
0:17:25 > 0:17:28into property developing, in which he already had experience.
0:17:28 > 0:17:32It was a couple of months after the auction that I met Joe,
0:17:32 > 0:17:33back at the property.
0:17:33 > 0:17:35- Joe, congratulations.- Thank you.
0:17:35 > 0:17:37What a fantastic plot.
0:17:37 > 0:17:40So, what are you going to do here?
0:17:40 > 0:17:44When I first looked at the property,
0:17:44 > 0:17:48I was looking at keeping it as it is, and then extending it slightly,
0:17:48 > 0:17:50renovating and going upwards and backwards.
0:17:50 > 0:17:54And then, possibly, putting something at the back with a side access.
0:17:54 > 0:17:57We've come up with a few other ideas as well, and one of those
0:17:57 > 0:18:00is my other half would like to keep it
0:18:00 > 0:18:03for our own personal residential home, as well.
0:18:03 > 0:18:06She likes the size of the plot, we've got a Doberman
0:18:06 > 0:18:09and he loved it when he came down after we got the keys and everything.
0:18:09 > 0:18:13I'm still try to convince her with a couple of other options, keeping
0:18:13 > 0:18:16the plot but maybe alternatives at the back, at the moment.
0:18:16 > 0:18:19So, do you think you'd like to build your own house here,
0:18:19 > 0:18:20or would you this develop this bungalow?
0:18:20 > 0:18:23At the moment, I've got somebody drawing up plans
0:18:23 > 0:18:26to come up with a new build, so, knock this down,
0:18:26 > 0:18:28and build a new one on top of this
0:18:28 > 0:18:32or just a little bit further back, a larger family home, which would be
0:18:32 > 0:18:35at least, if not slightly bigger than the one we've got at the moment.
0:18:35 > 0:18:41Joe had a budget of no more than £250,000 for the new build,
0:18:41 > 0:18:45which, along with his paid price of £245,000,
0:18:45 > 0:18:49already meant a total spend of £495,000,
0:18:49 > 0:18:51which would have been fine if he went along
0:18:51 > 0:18:54with his wife Camilla's preferences and lived here!
0:18:54 > 0:18:57But, as a property development proposition,
0:18:57 > 0:18:59it didn't look good in my book.
0:18:59 > 0:19:03Demolition costs can really stack up.
0:19:03 > 0:19:07And a new build can quickly run away with you in terms of budget.
0:19:07 > 0:19:12So, is Joe ignoring the best option, sitting right under his nose?
0:19:12 > 0:19:15Now, the bungalow, as it stands, is fantastic.
0:19:15 > 0:19:17It's got lovely, wide rooms.
0:19:17 > 0:19:19You could go up, you could go out,
0:19:19 > 0:19:23just with permitted development and make this a fantastic space.
0:19:23 > 0:19:25Surely that's the better option for you?
0:19:25 > 0:19:27And THEN try and get planning permission to build
0:19:27 > 0:19:29a separate house in the garden?
0:19:29 > 0:19:32It is, and that's another one I'm seriously considering
0:19:32 > 0:19:35and have been considering and I'm trying to convince my wife
0:19:35 > 0:19:37that we can still do that and get away with
0:19:37 > 0:19:40a reasonable-sized house, even if I go back another couple of metres
0:19:40 > 0:19:44and apply for planning permission, that shouldn't be a problem.
0:19:45 > 0:19:49So much of what Joe could do depended on planning permission.
0:19:49 > 0:19:51Plus, there was a covenant on the legal pack
0:19:51 > 0:19:54that set restrictions on what could be built.
0:19:54 > 0:19:57And he needed to sell his current home
0:19:57 > 0:20:00to release the equity for the work needed here.
0:20:00 > 0:20:02Whether he would renovate or build,
0:20:02 > 0:20:06Joe was hoping to have it all done in six months.
0:20:08 > 0:20:10What are you going to be doing in the next few months?
0:20:10 > 0:20:14In the next three months, it's going to be getting the plans drawn up,
0:20:14 > 0:20:15submitting the plans,
0:20:15 > 0:20:18whether it's a new complete build, or an extension to this.
0:20:18 > 0:20:22And, hopefully, get some agreement with the planners
0:20:22 > 0:20:24about what we can do at the back,
0:20:24 > 0:20:27what options there are and what they would be happy with.
0:20:30 > 0:20:35Just under a year later, we returned to find that Joe and his team
0:20:35 > 0:20:37were halfway through renovating the original bungalow
0:20:37 > 0:20:40into a chalet bungalow.
0:20:45 > 0:20:48But why a renovation and not a build?
0:20:49 > 0:20:53We originally want to go with the option of a house,
0:20:53 > 0:20:56basically extend the bungalow upwards,
0:20:56 > 0:21:00and also build a couple of properties at the back of the garden.
0:21:00 > 0:21:03We didn't get that option from the planners,
0:21:03 > 0:21:07so I decided I would go for a side extension and chalet bungalow,
0:21:07 > 0:21:10which is what he eventually got passed by the planners.
0:21:10 > 0:21:13So we've gone about four metres to the right-hand side,
0:21:13 > 0:21:15half a metre or so on the left-hand side,
0:21:15 > 0:21:18and we knocked down the front because it looked rather ugly,
0:21:18 > 0:21:20to make it a little bit more appealing
0:21:20 > 0:21:24and give it a wider hallway and an entrance area.
0:21:24 > 0:21:28So the planning department unfortunately scuppered
0:21:28 > 0:21:29Joe's plan to build a house on the site.
0:21:29 > 0:21:33But what, I hear you cry, is the difference
0:21:33 > 0:21:36between a house and a chalet bungalow?
0:21:36 > 0:21:39Well, a house, traditionally speaking, has two storeys
0:21:39 > 0:21:41and possibly attic space,
0:21:41 > 0:21:44whereas a chalet bungalow is one and a half storeys
0:21:44 > 0:21:48and likely to have a roof that comes down to the first-floor level.
0:21:48 > 0:21:51It will have, upstairs, four double bedrooms,
0:21:51 > 0:21:53One a master bedroom, will be larger.
0:21:53 > 0:21:56Two ensuite rooms, ensuite bathrooms,
0:21:56 > 0:21:59one main bathroom upstairs, and downstairs
0:21:59 > 0:22:04there will be three reception rooms, one large and two double rooms
0:22:04 > 0:22:06and a large kitchen and a garage.
0:22:06 > 0:22:10Joe is nearly a year on from when we first met him.
0:22:10 > 0:22:13Delays with planning issues and having to find a new architect,
0:22:13 > 0:22:15meant Joe's original six-month timescale
0:22:15 > 0:22:18had gone completely out of the window.
0:22:18 > 0:22:20But finally, things were moving on.
0:22:20 > 0:22:23We are now into our ninth week.
0:22:23 > 0:22:26So, we've made pretty good progress,
0:22:26 > 0:22:29considering the fact that we've only two months at it.
0:22:29 > 0:22:32We've spent approximately 45,000.
0:22:32 > 0:22:34It's about 25,000 on materials
0:22:34 > 0:22:39and probably around 20,000 in terms of labour costs.
0:22:39 > 0:22:44It's just a basic split, we still have quite a bit to spend.
0:22:44 > 0:22:46Yet, back in June 2014,
0:22:46 > 0:22:50Joe had a long list of jobs ahead before the house was complete.
0:22:50 > 0:22:53And what's more, he still wasn't sure whether he'd be selling it,
0:22:53 > 0:22:57or he and his wife Camilla would be moving in.
0:22:59 > 0:23:02Well, my wife still says yes, but what I said to her,
0:23:02 > 0:23:05what we would do is, we'd put both our property
0:23:05 > 0:23:10and this one up for sale at a price we'd like, and if somebody
0:23:10 > 0:23:15buys either one of those two at the price, then we'll go on that basis.
0:23:15 > 0:23:18So, if somebody offers me the right price for this,
0:23:18 > 0:23:22then I probably will sell, although I'd like to move into it,
0:23:22 > 0:23:25because I think it's got a lot more potential. We'll see what happens.
0:23:27 > 0:23:29Well, we'll find out exactly what did happen
0:23:29 > 0:23:31when we return later in the programme.
0:23:35 > 0:23:36Still to come -
0:23:36 > 0:23:39in Telford, Shropshire, young Ella is pointing the way.
0:23:39 > 0:23:43- So you bid on the strength of what your research said?- Yeah.
0:23:43 > 0:23:45- That's it, basically, yeah.- Wow.
0:23:47 > 0:23:50And in Gillingham, Kent, after a year and a half,
0:23:50 > 0:23:53has Joe finally completed his project?
0:24:01 > 0:24:05We return to West Brom now, where earlier, I looked around this
0:24:05 > 0:24:12three-bed end of terrace, that had a guide price of £49,000-£54,000.
0:24:13 > 0:24:15It was a good-sized property,
0:24:15 > 0:24:19although some cracks in an upstairs bedroom were a little worrying.
0:24:19 > 0:24:22But the potential at the back of the property
0:24:22 > 0:24:24certainly had me singing its praises.
0:24:24 > 0:24:28Now, the great thing about a corner plot is that, generally, you've got
0:24:28 > 0:24:31a half decent sized garden. That's certainly the case here.
0:24:31 > 0:24:35But you have only seen the half of it. Look at this. Fantastic!
0:24:35 > 0:24:36It's massive!
0:24:36 > 0:24:39But, better than that... is that gate!
0:24:39 > 0:24:41Why am I so excited?
0:24:41 > 0:24:45Because that gate leads to an access road. So suddenly, what is this?
0:24:45 > 0:24:50Is not just a garden, it's a potential building plot.
0:24:50 > 0:24:51Wow!
0:24:51 > 0:24:56It was bought on auction day for £87,000
0:24:56 > 0:25:00by experienced property developer Paul, who, along with son Ryan,
0:25:00 > 0:25:03had plans to renovate the property, then rent it out.
0:25:05 > 0:25:07Paul was, however,
0:25:07 > 0:25:10guilty of breaking one of Hammer's golden rules.
0:25:10 > 0:25:12It's a bit of a classic auction lot.
0:25:12 > 0:25:14If you hadn't come to see it,
0:25:14 > 0:25:17you might not have realised the potential of that bit out the back.
0:25:17 > 0:25:21- Well, we did buy this one blind. - You did?!- Yes, we did, yes, yes.
0:25:21 > 0:25:23I don't advise it very often.
0:25:23 > 0:25:26I've done it twice now and both times, sleepless nights,
0:25:26 > 0:25:27not recommended to anybody.
0:25:27 > 0:25:31Paul had aspirations to build two bungalows in the space
0:25:31 > 0:25:33at the back, but that was his long-term plan.
0:25:33 > 0:25:37And in the short term, he was going to renovate the existing property
0:25:37 > 0:25:40and already had a tenant waiting to move in.
0:25:47 > 0:25:51Two months later, and we returned to see how it's all gone.
0:26:18 > 0:26:21The downstairs is refreshed and contemporary,
0:26:21 > 0:26:25with the kitchen particularly improved, as Paul explains.
0:26:25 > 0:26:28The kitchen required a considerable amount of work.
0:26:28 > 0:26:30We ripped out all the old kitchen,
0:26:30 > 0:26:34we replaced it with some quality units, new worktops,
0:26:34 > 0:26:38new cooker, new hob, and we also put a new dividing wall in.
0:26:38 > 0:26:41The old kitchen didn't really work before.
0:26:41 > 0:26:43But I think the kitchen now, the way it's been designed,
0:26:43 > 0:26:45is good from a family point of view.
0:26:45 > 0:26:49Upstairs, and there is still a little bit of work to be done.
0:26:49 > 0:26:51But, the transformation is clear to see.
0:27:05 > 0:27:09The cracks in the front bedroom are gone and were thankfully historical.
0:27:11 > 0:27:14All the bedrooms are looking very clean and professionally done.
0:27:14 > 0:27:17Ideal for prospective tenants.
0:27:22 > 0:27:25The back of the property hasn't been touched, as planning permission
0:27:25 > 0:27:30is pending for Paul's plan to eventually build two bungalows.
0:27:32 > 0:27:34We bought the property from the auction,
0:27:34 > 0:27:38purely based on the fact that we may be able to put
0:27:38 > 0:27:40some bungalows on the rear of the property.
0:27:40 > 0:27:42It does sit on rather a large plot.
0:27:42 > 0:27:44But during the course of next year,
0:27:44 > 0:27:48we hope to be able to build two bungalows on the rear.
0:27:48 > 0:27:54The work we've done in the property has been a complete rewire,
0:27:54 > 0:28:00we've hacked all the plaster off the walls, new plumbing,
0:28:00 > 0:28:05new bathroom, new kitchen, new laminate floors, new doors.
0:28:05 > 0:28:10A complete revamp and obviously complete new declaration of the property
0:28:10 > 0:28:13and just brought it up to date to where it should have been, really.
0:28:13 > 0:28:16We're 95% there with the work, there are some outstanding
0:28:16 > 0:28:20little issues to deal with and we need to put some staircarpet in.
0:28:20 > 0:28:23Well, with the property almost complete, Paul has spent
0:28:23 > 0:28:28around £7,000, which, considering the finish here, is very impressive.
0:28:28 > 0:28:32Plus, it's taken him and his team eight weeks to get to this point,
0:28:32 > 0:28:34just two weeks over his original estimate.
0:28:35 > 0:28:37When we first met Paul,
0:28:37 > 0:28:41he was with his son Ryan, who was training on the job.
0:28:41 > 0:28:43So, how did he get on?
0:28:43 > 0:28:47Ryan's a quick learner, and I think he's a chip off the old block.
0:28:47 > 0:28:52And he's quite enjoying...he enjoys the variety of the work we do here.
0:28:52 > 0:28:55Some days, we do have our fall-outs, like every family do.
0:28:55 > 0:28:59But we understand what we're doing and we tend to...
0:28:59 > 0:29:02We go home friends, at the end of the day.
0:29:03 > 0:29:08Paul has so far spent around £94,000, buying and renovating
0:29:08 > 0:29:12the property, and whilst plans for the pair of bungalows
0:29:12 > 0:29:15are on the back burner, it will be interesting to hear
0:29:15 > 0:29:18what two local agents think of the work he's done.
0:29:18 > 0:29:21This is my second visit to the property and, obviously,
0:29:21 > 0:29:24a lot of work has been done to the property since my first visit.
0:29:24 > 0:29:28They've done a very good job, it feels like a family home, very warm.
0:29:28 > 0:29:30They've built the wall in the kitchen
0:29:30 > 0:29:32to make a breakfast room and the kitchen slightly bigger.
0:29:32 > 0:29:34They've done a very good job.
0:29:34 > 0:29:37The standard of the finish of the property is excellent.
0:29:37 > 0:29:39Particularly when you go into the kitchen,
0:29:39 > 0:29:41you've got the open-plan kitchen-diner.
0:29:41 > 0:29:44It really is quite striking and that's going to really appeal
0:29:44 > 0:29:46to any tenants or buyers of the property.
0:29:46 > 0:29:48And I think that's obviously going to be key.
0:29:48 > 0:29:49In terms of resale value,
0:29:49 > 0:29:53I'd expect this property to sell for around the £110,000 mark.
0:29:53 > 0:29:58The property would go on the market for me at £115,000.
0:29:58 > 0:30:01The valuations are pretty much what I expected.
0:30:01 > 0:30:03I've got good knowledge of the area,
0:30:03 > 0:30:06so there's no real surprise with the valuations.
0:30:06 > 0:30:11The top valuation could give him a pre-tax profit of £21,000.
0:30:11 > 0:30:14Very impressive. However, with the property already let,
0:30:14 > 0:30:17it will be interesting to hear the rental valuations.
0:30:19 > 0:30:24The rental value right now would be £575 per calendar month.
0:30:24 > 0:30:27In terms of rental value, I'd expect this property to command
0:30:27 > 0:30:30a figure of around £550 per calendar month.
0:30:30 > 0:30:34So, the rental value is pretty much what was expected,
0:30:34 > 0:30:39the tenants moving in will be paying £550 per calendar month.
0:30:39 > 0:30:44That gives Paul a yield of just over 7%. Very nice indeed.
0:30:44 > 0:30:48But Paul has his eyes set on what's next.
0:30:48 > 0:30:51Obviously, we've done the property up, but for me, the real excitement
0:30:51 > 0:30:54will come in the next chapter, when we do the bungalows,
0:30:54 > 0:30:58obviously, subject to planning, so, who knows, keep your fingers crossed.
0:31:02 > 0:31:05I'm in Telford, the largest town in Shropshire,
0:31:05 > 0:31:08a place steeped in the Industrial Revolution.
0:31:08 > 0:31:12Its most famous landmark is arguably the Iron Bridge,
0:31:12 > 0:31:17the first arch bridge anywhere in the world to use cast iron.
0:31:17 > 0:31:19True to its pioneering past,
0:31:19 > 0:31:22Telford is now one of the fastest-growing towns in Britain.
0:31:22 > 0:31:24# Oh, any old iron Any old iron
0:31:24 > 0:31:26# Any, any, any old iron. #
0:31:26 > 0:31:29Well, I'm in the popular residential suburb of Trench,
0:31:29 > 0:31:31close to the centre of Telford.
0:31:31 > 0:31:38Here to see a three-bed mid-terrace, had a guide price of £70,000.
0:31:38 > 0:31:40This is it. Off-street parking, that's a good start.
0:31:40 > 0:31:42Double glazing. Looking good.
0:31:46 > 0:31:48So, what have we got?
0:31:48 > 0:31:52Stairs up to the bedrooms there, and then into your front living room.
0:31:54 > 0:31:57Good news - central heating, that's good. Space for an open fire.
0:31:57 > 0:31:59We'll have that checked out,
0:31:59 > 0:32:01you don't know if it could actually be used for that,
0:32:01 > 0:32:04so get an expert in just to check that, but it's a nice sized room.
0:32:04 > 0:32:07But you ain't seen nothing yet.
0:32:07 > 0:32:08cos, come through here,
0:32:08 > 0:32:13and you enter a most monumentally, massive kitchen.
0:32:13 > 0:32:18Really 2014 in terms of big space.
0:32:18 > 0:32:20Kitchen, place for the kids to play, put a sofa up there,
0:32:20 > 0:32:24put a telly on the wall, it really works as a kind of living thing.
0:32:24 > 0:32:26It's not in the best of condition,
0:32:26 > 0:32:29you definitely want to replace the units.
0:32:29 > 0:32:31But you've got a lot of space, lots of light coming in
0:32:31 > 0:32:34from the windows there, bit of storage over there.
0:32:34 > 0:32:37All in all, a really good start.
0:32:37 > 0:32:41# This could be the start of something good
0:32:41 > 0:32:42# Na-na-na, na-na-na Na-na-na-na... #
0:32:42 > 0:32:44Central heating - check.
0:32:44 > 0:32:46Double glazing - check.
0:32:46 > 0:32:49Big kitchen with extra storage - check.
0:32:49 > 0:32:52It's ticking all the boxes, but what about the rest of the house?
0:32:54 > 0:32:58So, upstairs and three bedrooms. One pretty good-sized one,
0:32:58 > 0:33:00two slightly smaller ones. Got a bathroom and loo.
0:33:00 > 0:33:04A bit like the kitchen, it could do with a bit of modernisation.
0:33:04 > 0:33:06But it's a half decent size.
0:33:06 > 0:33:09When you are looking round properties like this,
0:33:09 > 0:33:11don't ignore the cupboards, they can reveal all sorts of things.
0:33:11 > 0:33:15Often there's damp, they can be in a right old state
0:33:15 > 0:33:19or they could sometimes reveal a bit of a hidden treasure.
0:33:19 > 0:33:22In this case, a pretty brand-new boiler.
0:33:22 > 0:33:25If you were thinking about the budget for this place,
0:33:25 > 0:33:28you might think, well, I'm going to have to factor in 1,000 quid,
0:33:28 > 0:33:29maybe 1,500 quid for a new boiler,
0:33:29 > 0:33:31well, you don't, cos there's a brand-new one.
0:33:31 > 0:33:35It's likely to be fuel-efficient so that is really good news.
0:33:35 > 0:33:37# It's good news week. #
0:33:37 > 0:33:39That boiler is a bonus.
0:33:39 > 0:33:42Two, three good bedrooms that just need redecorating.
0:33:44 > 0:33:47The bathroom needs an update, but other than that, it's all good.
0:33:50 > 0:33:53At the back of the property, you've got this strange little extension,
0:33:53 > 0:33:57which currently contains this little sort of area and a downstairs loo.
0:33:57 > 0:34:01Well, the loo's good, but surely, you could make more of this space,
0:34:01 > 0:34:03because, to my mind,
0:34:03 > 0:34:07this would be perfect for some kind of single-storey extension,
0:34:07 > 0:34:09which you could get under permitted development rules.
0:34:09 > 0:34:11Or maybe even a double-storey extension.
0:34:11 > 0:34:14The only thing to question is that nobody else along here
0:34:14 > 0:34:17has done that, so, mmm, maybe they know something I don't.
0:34:17 > 0:34:22But while I'm at the back here, look at this - fantastic, massive garden.
0:34:22 > 0:34:24Gosh. Could do with a bit of design, couldn't it?
0:34:24 > 0:34:27But apart from that, what a great additional space.
0:34:27 > 0:34:29All good news.
0:34:30 > 0:34:33Well, at least I think it is, but what does an agent
0:34:33 > 0:34:34from the auctioneers who sold it
0:34:34 > 0:34:39think of this three-bed house, guided at £70,000?
0:34:39 > 0:34:42My first impressions of the property, I was quite surprised, actually,
0:34:42 > 0:34:46that the rear garden is very large, which is a big, big bonus.
0:34:46 > 0:34:48The downstairs accommodation works well,
0:34:48 > 0:34:49cos it's got a good-sized kitchen.
0:34:49 > 0:34:51Upstairs maybe isn't the largest,
0:34:51 > 0:34:55the three bedrooms are quite average, but it does work quite well.
0:34:55 > 0:34:58I mean, in terms of what could be done to the property, it really is
0:34:58 > 0:35:01just general decor, the kitchen could be enhanced and many more
0:35:01 > 0:35:05units could be put in there, maybe a breakfast bar or something like that.
0:35:05 > 0:35:08I should imagine that the property could be renovated
0:35:08 > 0:35:10on quite a tight budget of approximately £5,000.
0:35:10 > 0:35:15What would be best for this property - sell or rent?
0:35:15 > 0:35:18If it was my property, I believe it would actually rent out
0:35:18 > 0:35:22very quickly, but I also believe with this one, it's got so much potential,
0:35:22 > 0:35:24it could possibly sell it on at a profit as well.
0:35:24 > 0:35:25In terms of rental potential,
0:35:25 > 0:35:30I'd estimate its worth to be £595 per calendar month.
0:35:30 > 0:35:34With regards to sales, I'd say £105,000.
0:35:34 > 0:35:35Well, you know me,
0:35:35 > 0:35:38I will always spot problems in the properties I visit.
0:35:38 > 0:35:40But in this case, I really don't think there are any.
0:35:40 > 0:35:45It's a solid house, in a nice location at a good guide price.
0:35:45 > 0:35:46No doubt about it.
0:35:46 > 0:35:48Let's see who agreed when it went under the hammer.
0:35:48 > 0:35:51It's a mid town house with three bedrooms.
0:35:51 > 0:35:56It is in need of modernisation. What shall we say for this one?
0:35:56 > 0:35:59Say 60 to start here? Lot number 43.
0:36:01 > 0:36:0360 bid, thank you, at £60,000.
0:36:03 > 0:36:0565, can I see now?
0:36:07 > 0:36:10The bid's at £60,000, lady's bid. £60,000.
0:36:10 > 0:36:12Looking for 65 now.
0:36:12 > 0:36:16At £60,000, £65,000 bid.
0:36:16 > 0:36:1970, you're happy with 70?
0:36:19 > 0:36:21£70,000, at 70,000.
0:36:21 > 0:36:2275?
0:36:24 > 0:36:27The bidding for this lot soon became quite a contest.
0:36:27 > 0:36:30We rejoin it at £84,000.
0:36:30 > 0:36:3184?
0:36:31 > 0:36:34Yeah, 84...and a half.
0:36:34 > 0:36:3685?
0:36:36 > 0:36:3885.
0:36:38 > 0:36:39Half?
0:36:39 > 0:36:4085 and a half.
0:36:40 > 0:36:4186, sir?
0:36:43 > 0:36:44Yeah, 86.
0:36:44 > 0:36:46Another half?
0:36:46 > 0:36:47Yeah, 86 and a half.
0:36:47 > 0:36:5287, yeah? 87. Half.
0:36:52 > 0:36:5387 and a half.
0:36:54 > 0:36:59Shaking his head. 87 and a half, in the aisle then, at £87,500.
0:36:59 > 0:37:0188, anywhere else?
0:37:01 > 0:37:05If not, 87,500 once, 87,500 twice,
0:37:05 > 0:37:09third and last time, £87,500.
0:37:09 > 0:37:12You've bought it, sir, well done.
0:37:12 > 0:37:16The hammer went down on John's bid of £87,500.
0:37:16 > 0:37:20Father of three, John, came along to this nearly perfect property
0:37:20 > 0:37:23with his youngest daughter, 14-year-old Ella,
0:37:23 > 0:37:26to tell me what he had planned.
0:37:26 > 0:37:29- John, Ella, great to meet you both. - You, too.- Congratulations.- Thank you.
0:37:29 > 0:37:32Tell me why you wanted to buy this place.
0:37:32 > 0:37:37Well, it's part of the portfolio, we just keep adding properties up to it.
0:37:37 > 0:37:41I didn't look at this one myself, Ella came along with her mum
0:37:41 > 0:37:43and looked at two or three on the day,
0:37:43 > 0:37:46- and gave me a bit of a report on what they had seen.- Right.
0:37:46 > 0:37:50- This one actually seemed to come up trumps, really.- Great.
0:37:50 > 0:37:52- So, you were the scout party.- Yeah.
0:37:52 > 0:37:54What did you think of this place when you saw it?
0:37:54 > 0:37:56Yeah, it's better than all the others
0:37:56 > 0:38:00because most of it is just redecorating and stuff.
0:38:00 > 0:38:04- Yeah, what was it you liked about it?- Big rooms, nice kitchen.
0:38:04 > 0:38:07- So, you bid on the strength of what your research said?- Yeah.
0:38:07 > 0:38:09- That's right.- Quite right, too. Wow.
0:38:09 > 0:38:12Your portfolio, you've been building that for a little while?
0:38:12 > 0:38:14- I'm a greengrocer...- Oh, right.
0:38:14 > 0:38:20- ..and I bought two shops and knocked them into one in 1992.- Right.
0:38:20 > 0:38:23It was about 2003 when we bought a property
0:38:23 > 0:38:26that was going to become our family home.
0:38:26 > 0:38:30But circumstances changed, so I ended up selling that,
0:38:30 > 0:38:35made a modest profit out of it and decided that perhaps
0:38:35 > 0:38:38- there was something to be made here, out of developing property.- Right.
0:38:38 > 0:38:42Enjoyed it that much that I ended up buying a site for three...
0:38:42 > 0:38:46We just got outline planning for three properties...three new builds.
0:38:46 > 0:38:50- Wow.- We did that, but handed that over to a main contractor
0:38:50 > 0:38:52to do all the work and unfortunately,
0:38:52 > 0:38:55- didn't really leave me anything out of it in the end.- Oh, right.
0:38:55 > 0:38:58We went forward a little bit and started looking at
0:38:58 > 0:39:01these kind of properties with the intention of buying and selling,
0:39:01 > 0:39:02to start with.
0:39:02 > 0:39:06And the first one that I bought, I was inundated with people wanting
0:39:06 > 0:39:10to rent it, so that's what we do, we started renting from then on.
0:39:10 > 0:39:14- So, when did you get involved, Ella?- Ages ago.
0:39:14 > 0:39:18Well, yeah, really, to start with... I don't do so much work now myself.
0:39:18 > 0:39:21But the first one, I was doing an awful lot of work myself
0:39:21 > 0:39:23- and roped them in. - Rope them in to do work.
0:39:23 > 0:39:26Rope them in to do work, that's it.
0:39:26 > 0:39:28And Ella enthusiastically strips paper
0:39:28 > 0:39:30and she still sticks with that, she'll strip the paper
0:39:30 > 0:39:34off the property and then we usually get a contractor in to...
0:39:34 > 0:39:37- or different subbies in to do the work...- Right.
0:39:37 > 0:39:40- ..and then come back and clean up afterwards.- Right.
0:39:40 > 0:39:42- But you're a fan of property, though, are you?- Yeah.
0:39:42 > 0:39:46Yeah, I suppose it's been in your blood, since you were young.
0:39:47 > 0:39:49# It's in the blood Yeah
0:39:49 > 0:39:52# All about the family. #
0:39:52 > 0:39:57This family empire covers a shop, a market stall and now property
0:39:57 > 0:40:02but John often has 2am starts with his greengrocers,
0:40:02 > 0:40:05so he'll really need Ella's help here.
0:40:05 > 0:40:06So, what's the plan?
0:40:08 > 0:40:09Mainly all cosmetic.
0:40:09 > 0:40:11The windows are all fine,
0:40:11 > 0:40:13although we are going to alter the one window in the kitchen,
0:40:13 > 0:40:17because it's below the worktop, so to give the kitchen a better look,
0:40:17 > 0:40:18we'll do that.
0:40:18 > 0:40:20We'll replace the tiles in the kitchen.
0:40:20 > 0:40:22They are quite good quality tiles
0:40:22 > 0:40:24but they haven't been put on particularly well.
0:40:24 > 0:40:27The garden needs a good sort out.
0:40:27 > 0:40:31Bathroom, we'll bring up to date and the rest is really redecoration.
0:40:31 > 0:40:34So, actually, what are you going to get to do with this one, Ella?
0:40:34 > 0:40:37- I'll strip the wallpaper.- Really? Anything else?- Mmmmm.
0:40:37 > 0:40:40- Possibly give her some cleaning to do at the end, I'm sure.- Whoopee!
0:40:40 > 0:40:43- Now, look, you're her mentor, right?- That's correct, yes.
0:40:43 > 0:40:46It sounds to me like the lessons have become a little bit limited,
0:40:46 > 0:40:48you need to take her on to Stage 2.
0:40:48 > 0:40:50You're probably correct there.
0:40:50 > 0:40:52Unfortunately, school tends to get in the way,
0:40:52 > 0:40:56so we've got to keep her education... But, yes, we will, obviously,
0:40:56 > 0:41:02as time goes on, if she does consider this to be an occupation for her,
0:41:02 > 0:41:05- then she'll be learning more, as she does, along the way.- Yeah.
0:41:05 > 0:41:09- Do you fancy that idea?- Yeah. - That sounds good, great.
0:41:09 > 0:41:11So, what's the budget?
0:41:11 > 0:41:14We'll do this on 4,000 to 5,000, yeah.
0:41:14 > 0:41:16Timescale?
0:41:16 > 0:41:18It won't take long, four to six weeks.
0:41:18 > 0:41:22You know, that will include redecoration and carpets.
0:41:22 > 0:41:25Ella is a budding apprentice in the property game,
0:41:25 > 0:41:28and I seem to recall one greengrocer's daughter
0:41:28 > 0:41:32- who became quite well known. - HE CHUCKLES
0:41:32 > 0:41:35But I've one question for John about his staff.
0:41:35 > 0:41:37Does Ella get paid?
0:41:37 > 0:41:40Yeah, we treat her to food at night!
0:41:40 > 0:41:45- "Oh, thanks, Dad!"- Yeah, that's it, we do treat her to a meal at night.
0:41:45 > 0:41:47She does get a bit of pocket money for it.
0:41:47 > 0:41:49Will you eventually give her a property of her own,
0:41:49 > 0:41:51that can really be her own project?
0:41:51 > 0:41:53That day will come, I expect,
0:41:53 > 0:41:55when she actually goes out, I'll take her out
0:41:55 > 0:41:59and I'll probably provide her with a deposit to go and find a property
0:41:59 > 0:42:01completely from her own...
0:42:01 > 0:42:05Go along, look at it, buy it and refurbish it completely.
0:42:05 > 0:42:07But that's probably a year or two away yet.
0:42:07 > 0:42:09Make sure you record this programme when it goes out
0:42:09 > 0:42:12- and then you can show it to him later.- I will.
0:42:12 > 0:42:15- Well, listen, congratulations, good luck with it.- Thank you.
0:42:15 > 0:42:17- Look forward to seeing how you get on.- Thanks very much.
0:42:17 > 0:42:21Well, it seems like Ella did her research well
0:42:21 > 0:42:25and John's got another good property to add to his rental portfolio.
0:42:25 > 0:42:27Small budget to do it up.
0:42:27 > 0:42:31You can find out how it all goes later in the show.
0:42:35 > 0:42:37Well, we've already seen how one of our projects ended up,
0:42:37 > 0:42:39but what about the other two?
0:42:39 > 0:42:41Are our owners all happy?
0:42:41 > 0:42:44Did they make the right decisions? Let's find out.
0:42:44 > 0:42:48Time to return now to Gillingham in Kent, where, in 2013,
0:42:48 > 0:42:51I first saw this bungalow.
0:42:51 > 0:42:54Though needing a good modernisation, the rooms were spacious
0:42:54 > 0:42:57and the guide of £190,000-£200,000
0:42:57 > 0:43:00was even more tempting, when accounting
0:43:00 > 0:43:04for the large plot of land it was on, which was 0.38 acres.
0:43:04 > 0:43:08Was it worth building an entirely new house?
0:43:08 > 0:43:12Say you bought the bungalow for the guide price - around £200,000.
0:43:12 > 0:43:16You knocked it down, built a four- or five-bedroom place,
0:43:16 > 0:43:19how much are you going to spend? 200K?
0:43:19 > 0:43:21You can pick up a large family home
0:43:21 > 0:43:24for well under 500 grand on this road,
0:43:24 > 0:43:28which makes me think, maybe this bungalow is worth working with.
0:43:28 > 0:43:31So, it had potential, but also limitations.
0:43:31 > 0:43:36It was bought at auction for £245,000 by Joe,
0:43:36 > 0:43:39who hadn't quite decided what he wanted to do.
0:43:41 > 0:43:45I was looking at keeping it as it is and then extending it slightly,
0:43:45 > 0:43:47renovating it, going upwards and backwards
0:43:47 > 0:43:50and we've come up with a few other ideas as well,
0:43:50 > 0:43:53and one of those is my other half would like to keep it.
0:43:53 > 0:43:55- She wants to live here. - She fell in love with it.
0:43:55 > 0:43:57She likes the size of the plot.
0:43:58 > 0:44:01He had a budget of no more than 250,000
0:44:01 > 0:44:04and a timescale of six months.
0:44:04 > 0:44:07However, when we returned almost a year later,
0:44:07 > 0:44:09it seemed like work had only just begun.
0:44:09 > 0:44:11We originally wanted to go with
0:44:11 > 0:44:13the option of a house,
0:44:13 > 0:44:16basically extend the bungalow upwards
0:44:16 > 0:44:20and also build a couple of properties at the back of the garden.
0:44:20 > 0:44:23We didn't get that option from the planners,
0:44:23 > 0:44:25so I decided I would go for a chalet bungalow,
0:44:25 > 0:44:28which is what we eventually got passed by the planners.
0:44:28 > 0:44:30So, we've made pretty good progress,
0:44:30 > 0:44:34considering the fact that we've only had two months at it.
0:44:34 > 0:44:38Sorting planning issues along with some other unforeseen problems
0:44:38 > 0:44:42had seen Joe's six-month timescale go out the window.
0:44:42 > 0:44:47He'd spent £45,000 and he still hadn't decided whether or not
0:44:47 > 0:44:50he was going to sell or move in himself,
0:44:50 > 0:44:52but at least work was underway.
0:44:52 > 0:44:54Six months later,
0:44:54 > 0:44:58and 18 months since Joe first began the project, we're back.
0:45:08 > 0:45:10Joe's chalet bungalow is now finished,
0:45:10 > 0:45:13with three reception rooms downstairs,
0:45:13 > 0:45:16along with a beautiful, high-spec kitchen.
0:45:18 > 0:45:22Joe's upstairs is actually classed as a loft conversion,
0:45:22 > 0:45:25keeping the property designated as a bungalow.
0:45:25 > 0:45:28It has four spacious bedrooms, two being en suite,
0:45:28 > 0:45:32and a family bathroom, all of which have modern, clean lines.
0:45:32 > 0:45:35So, no sign of that tired, old bungalow at all.
0:45:35 > 0:45:39And remember, this was a renovation of the original,
0:45:39 > 0:45:44but, oh, dear, in there hangs a tale of woe!
0:45:44 > 0:45:46As we started working on the inside
0:45:46 > 0:45:49and started to knock through some of the doorways and windows,
0:45:49 > 0:45:52that turned into a bit more of a nightmare,
0:45:52 > 0:45:54because the brickwork just came apart
0:45:54 > 0:45:57once we took the plaster and the render off,
0:45:57 > 0:46:01which meant basically, we had to start rebuilding those walls
0:46:01 > 0:46:04in the same locations, that we'd put in for planning.
0:46:04 > 0:46:10So, it ended up with all of the walls basically being new,
0:46:10 > 0:46:13the timber flooring was meant to remain in the original house.
0:46:13 > 0:46:16When we looked at it, it was infested with woodworm,
0:46:16 > 0:46:19so we had to take all that out and the floorboards,
0:46:19 > 0:46:24which ended up having to basically redo the whole house -
0:46:24 > 0:46:27flooring and walls and the roof as well.
0:46:27 > 0:46:30# Don't depend on me
0:46:31 > 0:46:34# Don't depend on me. #
0:46:36 > 0:46:41Yes, it seems like even the parts of the original bungalow that Joe wanted to keep
0:46:41 > 0:46:44have let him down and have had to be replaced anyway.
0:46:44 > 0:46:46On the positive side,
0:46:46 > 0:46:50replacing everything has meant the house has a beautiful finish.
0:46:50 > 0:46:54But, now the bungalow is completed, what about that land at the back?
0:46:54 > 0:47:00The intention is still to make use of the large garden at the back, to try
0:47:00 > 0:47:04and see if we can put something else on there, possibly one, possibly...
0:47:04 > 0:47:08Well, one detached, possibly two semi-detached bungalows at the back.
0:47:08 > 0:47:11Joe found out that in order for planning to approve
0:47:11 > 0:47:15any new development at the rear of his garden, it would need
0:47:15 > 0:47:20to be accessible by land that's currently owned by his neighbour.
0:47:20 > 0:47:24I will try and see if I can approach the one neighbour at the back,
0:47:24 > 0:47:27and see whether there's any possible option
0:47:27 > 0:47:29of buying access through there.
0:47:29 > 0:47:34Otherwise, I'm going to be basically sticking with the garden as it is.
0:47:36 > 0:47:40Well, that's certainly something that can be sorted at a later date,
0:47:40 > 0:47:44but Joe still hasn't told me if he and his wife, Camilla,
0:47:44 > 0:47:46have decided to move in.
0:47:46 > 0:47:49I wasn't completely convinced whether we were going to move in
0:47:49 > 0:47:55or whether we were going to sell, and it was my wife who carried on
0:47:55 > 0:48:00convincing me that she would like to move into it rather than sell it.
0:48:00 > 0:48:05So, she chose a lot of the units for the kitchen and the doors
0:48:05 > 0:48:08and things like that. If she wasn't happy, then I couldn't put them in.
0:48:10 > 0:48:12Well, it seems Joe set out to buy an investment,
0:48:12 > 0:48:15but has bought a home instead.
0:48:15 > 0:48:19However, his original budget was 250,000,
0:48:19 > 0:48:22but that was for a bigger property with a double garage,
0:48:22 > 0:48:26and it's credit to Joe, that despite those unforeseen building issues,
0:48:26 > 0:48:31he was able to keep the budget for his revised plans down to 160,000.
0:48:31 > 0:48:37Add that to his original purchase price of 245,000 and he's invested
0:48:37 > 0:48:40a total of £405,000.
0:48:41 > 0:48:44What do two local estate agents think about
0:48:44 > 0:48:46what Joe has achieved here?
0:48:47 > 0:48:51There's a lot of bungalows up this road, there's some houses.
0:48:51 > 0:48:53But it's got a nice look to it from the front.
0:48:53 > 0:48:57It doesn't cause any friction, it's got a good kerb appeal.
0:48:57 > 0:48:59It's different, but it's nice.
0:48:59 > 0:49:03The overall, when considering what it was and what it is now,
0:49:03 > 0:49:06basically is no comparison.
0:49:06 > 0:49:08It might have been easier if they'd been able to knock it down
0:49:08 > 0:49:11and start again, but now they've got a really, really nice property.
0:49:11 > 0:49:15Both of the estate agents said the property could rent
0:49:15 > 0:49:19for up to £1,750 per calendar month.
0:49:19 > 0:49:22Now it doesn't sound as if Camilla will let him sell,
0:49:22 > 0:49:25but just for the nosiness, let's find out
0:49:25 > 0:49:30if he could make a profit on his £405,000 investment.
0:49:30 > 0:49:32Overall, I'd say the valuation of this property
0:49:32 > 0:49:35is in the region of £500,000.
0:49:35 > 0:49:39It might even push to £525,000.
0:49:39 > 0:49:40If I was selling this property,
0:49:40 > 0:49:44I would sell it between £580,000 and £600,000.
0:49:44 > 0:49:51Wow! That topmost figure would give Joe a pre-tax profit of £195,000.
0:49:51 > 0:49:55But this is to be Joe's home now, and of course,
0:49:55 > 0:49:57there's still potential for a development
0:49:57 > 0:50:02at the back of his garden, so I doubt he could be persuaded to sell.
0:50:02 > 0:50:04Could he?
0:50:04 > 0:50:09I would certainly be more than happy to sell at that sort of price,
0:50:09 > 0:50:10but having said that,
0:50:10 > 0:50:15I don't think my wife would be swayed by that too much at the moment.
0:50:25 > 0:50:29Back now to Telford in Shropshire, where earlier, I looked around
0:50:29 > 0:50:33this three-bed mid-terrace that had a guide price of £70,000.
0:50:35 > 0:50:38With off-street parking at the front, along with double glazing
0:50:38 > 0:50:41and what looked like a new boiler upstairs,
0:50:41 > 0:50:44I was immediately impressed.
0:50:44 > 0:50:49Come through here and you enter a most monumentally, massive kitchen.
0:50:49 > 0:50:52Big space - kitchen, place for the kids to play,
0:50:52 > 0:50:54put a sofa up there, put a telly on the wall,
0:50:54 > 0:50:57it really works as a kind of living thing.
0:50:57 > 0:51:00It's not in the best of condition, you'd definitely want to replace
0:51:00 > 0:51:03the units, but you've got a lot of space.
0:51:03 > 0:51:05All in all, a really good start.
0:51:05 > 0:51:08A few too many feature walls for my taste
0:51:08 > 0:51:11and the back garden wasn't achieving its potential,
0:51:11 > 0:51:14but there were no big problems, and it was a good, solid house.
0:51:16 > 0:51:18The bidders agreed with me on auction day,
0:51:18 > 0:51:22with a drawn-out battle, resulting in the successful bid
0:51:22 > 0:51:26of £87,500, which belonged to greengrocer, John.
0:51:27 > 0:51:30You've bought it, sir, well done.
0:51:30 > 0:51:34John has a small portfolio of rental properties and for this one,
0:51:34 > 0:51:37he had a secret weapon, in the shape of daughter, Ella,
0:51:37 > 0:51:39to tackle those bold wallpapers.
0:51:41 > 0:51:45Ella enthusiastically strips paper and she still sticks with that,
0:51:45 > 0:51:47she'll strip the paper off the property and then
0:51:47 > 0:51:50we usually get a contractor in to...
0:51:50 > 0:51:52Or different subbies in to do the work...
0:51:52 > 0:51:56- Right.- ..and then come back and clean up afterwards.- Right.
0:51:56 > 0:51:58- But you're a fan of property then, are you?- Yeah.
0:51:58 > 0:52:00Yeah, I suppose it's been in your blood.
0:52:01 > 0:52:05So, father and daughter team were looking at a cosmetic renovation
0:52:05 > 0:52:09and had given themselves a £4,000-£5,000 budget
0:52:09 > 0:52:11and a timescale of 4-6 weeks
0:52:11 > 0:52:14before it would be ready for the rental market.
0:52:18 > 0:52:22Six weeks later, we return to Telford to see how they've got on.
0:52:25 > 0:52:30MUSIC: Changing by Sigma feat. Paloma Faith (Instrumental)
0:52:43 > 0:52:46And the downstairs is now fresh, clean and appealing,
0:52:46 > 0:52:48perfect for the rental market.
0:52:50 > 0:52:53That great-sized kitchen has been revitalised
0:52:53 > 0:52:56and the use of space seems so much better.
0:52:58 > 0:53:01OK, I'm particularly pleased with this room.
0:53:01 > 0:53:05It was a wide, open kitchen to start with, the worktops came,
0:53:05 > 0:53:08I think, somewhere to roughly around about here.
0:53:08 > 0:53:13The window was below the worktops, so what we did, we actually managed
0:53:13 > 0:53:19to match the kitchen units from, obviously, the original supplier.
0:53:19 > 0:53:22So, we returned the kitchen into a U shape,
0:53:22 > 0:53:24which has separated the room,
0:53:24 > 0:53:29giving this area room for the tenants to use as a dining area,
0:53:29 > 0:53:33whilst all the kitchen work is kept completely separate.
0:53:33 > 0:53:36And I think it has turned out really well.
0:53:36 > 0:53:41Moving upstairs, and the clean lines and simple finish continues.
0:53:42 > 0:53:45MUSIC: Changing by Sigma feat. Paloma Faith (Instrumental)
0:54:05 > 0:54:10The bathroom is much improved, all thanks to a subtle rejigging.
0:54:10 > 0:54:13Another room I'm particularly pleased with is the bathroom.
0:54:13 > 0:54:15We've put a new bath in, in the opposite direction,
0:54:15 > 0:54:18so that we can put a shower attachment off the bath
0:54:18 > 0:54:22instead of electric showers, which means less maintenance for us.
0:54:22 > 0:54:25It turned out really well and nice, nice and bright room.
0:54:25 > 0:54:29At the front of the house, John has had a driveway installed
0:54:29 > 0:54:33and the back garden has had the concrete slabs lifted and is being
0:54:33 > 0:54:37laid to seed, so hopefully, that will be looking much better soon.
0:54:38 > 0:54:39John and daughter, Ella,
0:54:39 > 0:54:43have done a great job making this house the perfect rental property.
0:54:45 > 0:54:49Well, it took us three weeks, when we actually started, cos we were
0:54:49 > 0:54:53already on another project, and it took three weeks when we got started.
0:54:53 > 0:54:55We actually only had tradesmen on-site
0:54:55 > 0:54:57for 12 days of that three-week period.
0:54:57 > 0:55:01It sounds as though they've been very organised to get all this done
0:55:01 > 0:55:04and to get tradesmen in and out in such a short time.
0:55:04 > 0:55:08So, what about that £4,000-£5,000 budget?
0:55:08 > 0:55:12We don't actually specifically tie ourselves to a budget because
0:55:12 > 0:55:16we just work with the property - whatever needs doing, gets done.
0:55:16 > 0:55:19I did think it would be around about £5,000, but I've just spent...
0:55:19 > 0:55:22I think it was £5,570.
0:55:23 > 0:55:28Just over 3,000 was materials and the rest was labour.
0:55:28 > 0:55:31Well, some of that labour was daughter, Ella,
0:55:31 > 0:55:35who had a big job getting rid of those feature walls.
0:55:36 > 0:55:40I was here for about two weekends and I stripped the wallpaper,
0:55:40 > 0:55:44by putting the steamer on the wall and then using the scraper,
0:55:44 > 0:55:46and it came off quite easy.
0:55:46 > 0:55:50Ssh! Don't tell Dad it was easy, otherwise you might not be able
0:55:50 > 0:55:53to charge him the full rate. Seriously, well done, Ella,
0:55:53 > 0:55:57and well done, John, he's already managed to find a tenant to move in.
0:55:57 > 0:55:58A great result.
0:56:04 > 0:56:06With a total spend here
0:56:06 > 0:56:10of just over £93,000, it will be interesting to hear the opinions
0:56:10 > 0:56:12of two local property agents.
0:56:12 > 0:56:15Starting with the one who saw it originally.
0:56:15 > 0:56:16I like the property very much.
0:56:16 > 0:56:18Obviously, I saw it beforehand,
0:56:18 > 0:56:21I've now seen it and I think the improvements which have been made
0:56:21 > 0:56:23have been done to a good standard.
0:56:23 > 0:56:27The kitchen in particular is very good, the bathroom is very nice also.
0:56:27 > 0:56:29And it's just got generally a very good, fresh feel to it.
0:56:29 > 0:56:31I think they've done a great job.
0:56:31 > 0:56:33They've gone for nice, neutral colours
0:56:33 > 0:56:35and plain and simple all the way throughout.
0:56:35 > 0:56:37It looks all brand-new and shiny, it's excellent.
0:56:37 > 0:56:38In the current market,
0:56:38 > 0:56:41I think it ought to be on the market for round about £120,000.
0:56:41 > 0:56:43Now the property has been improved,
0:56:43 > 0:56:47I would put an asking price of £120,000 on it.
0:56:47 > 0:56:48Well, it sounds very good.
0:56:48 > 0:56:53It certainly puts my new build experience into financial embarrassment.
0:56:53 > 0:56:55Especially since it only took us three weeks to do.
0:56:55 > 0:56:57That's wonderful, that is.
0:56:58 > 0:57:05Yes, a potential pre-tax profit of £27,000 is very impressive indeed.
0:57:05 > 0:57:07But having already rented the property,
0:57:07 > 0:57:11will the agents' valuations match his own?
0:57:13 > 0:57:16In terms of rental potential, I'd estimate £600 per calendar month.
0:57:16 > 0:57:19I think the rental value is somewhere in the region
0:57:19 > 0:57:23of about £575-£600 per calendar month.
0:57:23 > 0:57:26Yeah, well, we've already got it tenanted at 595,
0:57:26 > 0:57:28so that's spot on, really.
0:57:28 > 0:57:33That gives John a very healthy yield of over 7.5%
0:57:33 > 0:57:38and with the potential profit of around £27,000,
0:57:38 > 0:57:41this project is a huge success.
0:57:42 > 0:57:45So, how's it done, John?
0:57:45 > 0:57:48Don't pay too much for the property in the first place
0:57:48 > 0:57:51and work with it, don't go in with a blanket idea, just work
0:57:51 > 0:57:55with whatever's necessary and don't do any more than is essential.
0:57:58 > 0:58:01Martin and I look forward to seeing you for more auction action
0:58:01 > 0:58:03- next time.- Yeah, it's been fascinating, hasn't it?
0:58:03 > 0:58:05- We'll see you then.- Goodbye.- Bye.