0:00:02 > 0:00:04Whether you're a seasoned developer or a first-time buyer,
0:00:04 > 0:00:06you will want to get value for money.
0:00:06 > 0:00:09And that can be quite difficult in a fluctuating market
0:00:09 > 0:00:13which is why more and more people are buying their homes under the hammer.
0:00:39 > 0:00:41Sometimes you just know you've bought a bargain
0:00:41 > 0:00:44and sometimes, well, you're not quite sure.
0:00:44 > 0:00:48The only way to find out is to test the market.
0:00:48 > 0:00:51So did the buyers on today's show bag themselves a bargain?
0:00:51 > 0:00:53Here's what they bought.
0:00:54 > 0:00:56They're difficult to find in London
0:00:56 > 0:00:58but today I've got a proper property bargain for you
0:00:58 > 0:01:00in Camberwell, South London.
0:01:00 > 0:01:03This little earner has not let me down.
0:01:04 > 0:01:08But letting down this art-deco house in Cumbria is a serious issue.
0:01:08 > 0:01:10Some real problems
0:01:10 > 0:01:13with penetrating damp.
0:01:14 > 0:01:17However, this semi in Stoke is cracking.
0:01:17 > 0:01:19Cracking in a good way downstairs
0:01:19 > 0:01:22but in not such a good way upstairs.
0:01:22 > 0:01:24Structural survey required.
0:01:24 > 0:01:27All these properties have been sold at auction.
0:01:27 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:32when they went under the hammer.
0:01:32 > 0:01:34You bought it, sir, well done.
0:01:41 > 0:01:44Welcome to Camberwell in South London.
0:01:44 > 0:01:48Once a traditional farming village in the 1800s, Camberwell is now
0:01:48 > 0:01:53a bustling multicultural area with great transport links to the city.
0:01:53 > 0:01:56Cheaper than neighbouring Brixton and Dulwich,
0:01:56 > 0:01:59and also undergoing a gentrification process.
0:01:59 > 0:02:03Camberwell is ideal for commuters and investors alike.
0:02:03 > 0:02:06Within a purpose-built block just a short walk
0:02:06 > 0:02:09from Camberwell Green is the property I'm here to see.
0:02:09 > 0:02:12This might not be the prettiest setting
0:02:12 > 0:02:17but purpose-built blocks like these do provide a more affordable way
0:02:17 > 0:02:20to live in an area which is only a few miles
0:02:20 > 0:02:22from the centre of London.
0:02:22 > 0:02:25So, what do you get for a guide price of £95,000?
0:02:25 > 0:02:28Well, it's on the ground floor, it's a one-bedroomed flat
0:02:28 > 0:02:32and it's right here. Let's go in.
0:02:32 > 0:02:35The guide price means the flat
0:02:35 > 0:02:38is even under the 1% stamp duty threshold.
0:02:38 > 0:02:40Almost unheard of in London.
0:02:40 > 0:02:42So I'm definitely willing to overlook
0:02:42 > 0:02:45the rather utilitarian appearance of the building.
0:02:45 > 0:02:48I reckon it's going to be what's inside that counts.
0:02:53 > 0:02:56Well, it's great to have a little hallway here,
0:02:56 > 0:02:59somewhere to hang your coat, which is always handy,
0:02:59 > 0:03:02and what I do love is the storage space.
0:03:02 > 0:03:05Always good to have that in a one-bedroomed flat.
0:03:05 > 0:03:08The bathroom needs updating. You might even want to change the suite.
0:03:08 > 0:03:12The kitchen, probably a new kitchen in there, but it looks like that's
0:03:12 > 0:03:16a fairly new boiler, so that's a saving, straightaway.
0:03:16 > 0:03:19You've got central heating, double glazing everywhere.
0:03:19 > 0:03:22Not sure about this fire surround.
0:03:22 > 0:03:24I don't think it really goes in this flat!
0:03:24 > 0:03:27And the bedroom, a bit disappointing.
0:03:27 > 0:03:30It's on the small side, although you could get a double bed in there.
0:03:30 > 0:03:34So, overall, if you want to be in the heart of London, ten minutes
0:03:34 > 0:03:38away from the West End, this could be a really good flat for somebody.
0:03:38 > 0:03:41There's no doubt there could be a few upgrades to this place
0:03:41 > 0:03:44to make it feel more inviting.
0:03:44 > 0:03:47And there's an obvious repair needed to that plasterwork.
0:03:47 > 0:03:51But basically, the inside of this flat does not disappoint.
0:03:51 > 0:03:53# How do you like me now? #
0:03:57 > 0:04:00For many, it won't be ideal that this is on the ground floor,
0:04:00 > 0:04:04but, on the other hand, at least you won't have stairs to contend with.
0:04:04 > 0:04:09Plus it's got 117 years left on its lease. Job's a good 'un!
0:04:10 > 0:04:12One of the first thoughts that springs to mind with a flat
0:04:12 > 0:04:16like that is, what rental potential does it have?
0:04:16 > 0:04:19They tend to make great investments.
0:04:19 > 0:04:22Well, if you buy for the guide of £95,000,
0:04:22 > 0:04:26spend, let's say, ten grand on the renovations
0:04:26 > 0:04:30and then you could rent it for up to £950 a month.
0:04:30 > 0:04:34That would give you a healthy yield of nearly 11%.
0:04:34 > 0:04:38This little earner has not let me down.
0:04:38 > 0:04:41# And it's getting better
0:04:41 > 0:04:45# Growing stronger
0:04:45 > 0:04:49# Warm and wilder
0:04:49 > 0:04:53# Getting better every day
0:04:53 > 0:04:56# Better every day... #
0:04:56 > 0:05:00What does a local estate agent think needs to be done
0:05:00 > 0:05:05to this flat, with its very attractive 95 grand guide price?
0:05:05 > 0:05:08The amount of money that needs to be spent on this flat in terms of
0:05:08 > 0:05:12refurbishment really depends on what level that you want to take it to.
0:05:12 > 0:05:15My view is somewhere between 10,000-15,000 would have it
0:05:15 > 0:05:18kitted out fully. There's no point in going too overboard with it
0:05:18 > 0:05:21because you're not going to get the return on that investment.
0:05:23 > 0:05:25So, what could the flat be worth
0:05:25 > 0:05:27once the refurbishment has been done?
0:05:27 > 0:05:31Once the property's been renovated to a reasonable standard, you are
0:05:31 > 0:05:35probably looking at somewhere in the region of 140-150,000.
0:05:35 > 0:05:42The agent and I agree that this property could rent out for £900-950 per calendar month.
0:05:43 > 0:05:45Yes, I do like this flat.
0:05:45 > 0:05:49You really do get great value for money with a flat like this.
0:05:49 > 0:05:54And you don't need to spend big to make a decent return here.
0:05:54 > 0:05:56Seems like a straightforward little project for someone.
0:05:56 > 0:05:58Let's see who agreed when we went to auction.
0:06:00 > 0:06:03This lot came up towards the end of the day,
0:06:03 > 0:06:05but there was still plenty of interest.
0:06:05 > 0:06:10Purpose-built one-bedroomed ground floor flat. 100,000, anywhere?
0:06:10 > 0:06:14Yes, thank you, 100 I've got. 101?
0:06:14 > 0:06:16102, 103?
0:06:16 > 0:06:21104, 105, 106, 107, 108.
0:06:21 > 0:06:25109. 110. 111.
0:06:25 > 0:06:29112. 113. 114.
0:06:29 > 0:06:33115. 116. Anybody else?
0:06:33 > 0:06:39Hello, sorry, I'm ignoring you over there. 116, new place. 117. 118.
0:06:40 > 0:06:46119. 120. 121. 122. No?
0:06:48 > 0:06:51With you, sir, £121,000.
0:06:51 > 0:06:56If not, 122, back in. Nearly, 123.
0:06:56 > 0:06:57OK.
0:06:57 > 0:07:00£122,000. Anybody else?
0:07:00 > 0:07:03If not, 122 for the first.
0:07:03 > 0:07:06122 for the second.
0:07:06 > 0:07:09123, back in.
0:07:09 > 0:07:11124.
0:07:13 > 0:07:15124. 125?
0:07:15 > 0:07:17126?
0:07:17 > 0:07:20No? It's with you again, Sir. A bid of £125,000.
0:07:20 > 0:07:23It's against the gentleman here on my left at the front.
0:07:23 > 0:07:28£125,000 for lot 89. Anybody else?
0:07:28 > 0:07:32If not, 125 for the first.
0:07:32 > 0:07:34125 for the second.
0:07:34 > 0:07:37125 for the third and final time, are we all done?
0:07:37 > 0:07:40Sold, 125.
0:07:40 > 0:07:42The rather relaxed-looking bidder
0:07:42 > 0:07:45emerging from that hard-fought contest is Stephen.
0:07:45 > 0:07:51With his bid of 125,000, he's managed to buy this Camberwell flat.
0:07:51 > 0:07:53Stephen is a trained opera singer
0:07:53 > 0:07:56and he also serves in the Territorial Army.
0:07:56 > 0:08:00So it was "quick, march" back to the flat to find out his plans.
0:08:03 > 0:08:06- Stephen, congratulations. - Thank you very much.
0:08:06 > 0:08:08This is really good news for you.
0:08:08 > 0:08:11- Did you expect to get this on auction day?- I didn't, actually.
0:08:11 > 0:08:15Not for the ceiling I'd set, so I was pleasantly surprised, actually.
0:08:15 > 0:08:17And what was your ceiling?
0:08:17 > 0:08:19- It was 125.- Fantastic.
0:08:19 > 0:08:21Now, I know you have an operatic background.
0:08:21 > 0:08:23But tell me more about the Army, the TA.
0:08:23 > 0:08:26Yes, so, I realised when I was younger I wanted to do
0:08:26 > 0:08:28lots of different things.
0:08:28 > 0:08:31And I loved the arts and theatre and music,
0:08:31 > 0:08:34but I also wanted to be a soldier.
0:08:34 > 0:08:40As it happened I went off to university and the arts won out and I got into opera.
0:08:40 > 0:08:44But then, a couple of years ago, I thought, actually, I can do both.
0:08:44 > 0:08:48So I joined the TA and, after a couple of years was mobilised
0:08:48 > 0:08:50and went to Afghanistan for a tour of duty.
0:08:50 > 0:08:54So, what do the soldiers think when you start singing along?
0:08:54 > 0:08:57Well, before I went out, I was told, maybe don't mention it because
0:08:57 > 0:09:01it's this macho world, I'm not sure how opera is going to go down.
0:09:01 > 0:09:06And actually, everybody was really supportive. They loved it.
0:09:06 > 0:09:08The only thing they said was, "Why are you here?
0:09:08 > 0:09:12What are you doing? Why did you volunteer to do this? You're mad!"
0:09:12 > 0:09:15And why were you there?
0:09:15 > 0:09:18I just think it's something I've always wanted to do.
0:09:18 > 0:09:20And I'm really glad I did it.
0:09:20 > 0:09:23It's one of the best things I've done in my life.
0:09:23 > 0:09:27Although I've just asked my girlfriend to marry me, she said yes.
0:09:27 > 0:09:30- So that's the best thing. - She said yes?- She said yes.
0:09:30 > 0:09:33- And when are you getting married? - Probably in a year or so,
0:09:33 > 0:09:36but the plan is to renovate a French property to get married into.
0:09:36 > 0:09:39So I've got to do that as well.
0:09:39 > 0:09:42You really do have a full life, which I absolutely love.
0:09:42 > 0:09:45If I had to ask you, Territorial Army or singing,
0:09:45 > 0:09:47what would you choose full-time?
0:09:47 > 0:09:49That's a difficult choice.
0:09:49 > 0:09:52- You love them both? - Yeah, and I love property as well.
0:09:52 > 0:09:56But there's a real privilege about making money singing opera.
0:09:56 > 0:10:00It's an absolute honour to be able to do it, so probably that, I think.
0:10:03 > 0:10:04An honour indeed.
0:10:04 > 0:10:07And I do like the sound of running off to France
0:10:07 > 0:10:11to get married and do up a property. Oh, tres romantique!
0:10:13 > 0:10:15But, before Stephen and his fiancee
0:10:15 > 0:10:18can even think about vin rouge and Camembert,
0:10:18 > 0:10:24back to Camberwell and Stephen's liaison with this "appartement".
0:10:27 > 0:10:30So, tell me the story. Why have you decided to buy this?
0:10:30 > 0:10:33Well, I started buying at auction a couple of years ago.
0:10:33 > 0:10:36I was mobilised to Afghanistan.
0:10:36 > 0:10:38I had some money in the bank.
0:10:38 > 0:10:40And I thought, I'm going to be away for a year.
0:10:40 > 0:10:43The money's going to be worth less than if I just leave it in the bank.
0:10:43 > 0:10:47- So, bricks and mortar, inspired by Homes Under The Hammer, of course. - Yes!
0:10:47 > 0:10:51And yes, I bought my first one and it's just carried on from there.
0:10:51 > 0:10:53So, how long have you been singing for?
0:10:53 > 0:10:56I started probably about ten years ago.
0:10:56 > 0:11:00Can you just give me a few notes to perhaps crack the light bulb?
0:11:00 > 0:11:02Yes, well, I think you've got to, you know, breathe in
0:11:02 > 0:11:06and get the right breathing control. I apologise to my neighbours.
0:11:07 > 0:11:12# Ma n'atu sole
0:11:12 > 0:11:15# 'Cchiu bello oi ne
0:11:15 > 0:11:18# O sole mio
0:11:18 > 0:11:20# Sta nfronte a te
0:11:20 > 0:11:23# O sole
0:11:23 > 0:11:27# O sole mio
0:11:27 > 0:11:30# Sta nfronte a te
0:11:30 > 0:11:36# Sta nfronte a te! #
0:11:36 > 0:11:38Thank you!
0:11:38 > 0:11:41Oh, my hairs have all stood up on end! That was amazing!
0:11:41 > 0:11:44- Oh, thank you. - That was fantastic.- Thank you.
0:11:44 > 0:11:47There's always a first on Homes Under The Hammer, and that was it!
0:11:47 > 0:11:49Wow!
0:11:49 > 0:11:52So, you opera-sing, you're also with the Territorial Army and now you're
0:11:52 > 0:11:56property developing on the side, so you've got fingers in many pies.
0:11:56 > 0:11:57This is exactly it.
0:11:57 > 0:12:01And the thing with opera singing is, it can be feast or famine.
0:12:01 > 0:12:03And I haven't really got a pension organised,
0:12:03 > 0:12:06so I look at the property as a kind of pension pot, I suppose.
0:12:06 > 0:12:09So, Stephen, what are your plans for this property?
0:12:09 > 0:12:14I will see if I can recycle the kitchen and maybe change the doors.
0:12:14 > 0:12:17I need to get some more white goods to go in there.
0:12:17 > 0:12:19And I'm going to have a go at doing up the bathroom.
0:12:19 > 0:12:22I think probably a new bath suite at least.
0:12:22 > 0:12:23OK, and what's your budget?
0:12:23 > 0:12:26I think I can do it for probably under two grand.
0:12:26 > 0:12:28- Under £2,000?- I think so, yeah.
0:12:28 > 0:12:30- Are you going to do a lot of the work yourself?- I am.
0:12:30 > 0:12:33The good thing about the singing work is, because I'm a freelancer,
0:12:33 > 0:12:37I get time in the week to actually come and do this kind of stuff,
0:12:37 > 0:12:38so it does have a natural fit.
0:12:38 > 0:12:42So, things like replastering the ceiling, can you do that job?
0:12:42 > 0:12:43We're going to find out,
0:12:43 > 0:12:48because I have done some plastering before, but not the finishing.
0:12:48 > 0:12:51- You're talented, but not that talented!- No, there are limits!
0:12:51 > 0:12:54Obviously. But I'm going to give it a go.
0:12:54 > 0:12:56Well, there may not be much work to be done here,
0:12:56 > 0:12:59but that is still a very tight budget.
0:12:59 > 0:13:02# Money's too tight to mention... #
0:13:02 > 0:13:03The good news is, though,
0:13:03 > 0:13:08Stephen already has a friend lined up willing to rent the property.
0:13:08 > 0:13:10And the bad news is...
0:13:11 > 0:13:13The only problem is, it's at the end of the month,
0:13:13 > 0:13:16so I've only got about two weeks to get this place sorted out.
0:13:16 > 0:13:18- So you have got to crack on? - Absolutely.
0:13:18 > 0:13:20So, do you think two weeks is long enough for you
0:13:20 > 0:13:22to get in here and crack on and get out?
0:13:22 > 0:13:25It would be if I wasn't rehearsing for an opera, but I'm doing
0:13:25 > 0:13:29that at the same time, so it's going to be long nights, I think.
0:13:29 > 0:13:32So you rehearse during the day and then you'll be here in the evenings?
0:13:32 > 0:13:34I'll be here in the evenings.
0:13:34 > 0:13:37- Are you worried?- A little bit, because there's always something
0:13:37 > 0:13:41when you're at auction, and you go, "this will be a quick turnaround",
0:13:41 > 0:13:44and when you actually get in here, and you realise, just,
0:13:44 > 0:13:46everything takes longer than you think.
0:13:46 > 0:13:48The painting, all that kind of stuff.
0:13:48 > 0:13:49But I've got no choice.
0:13:49 > 0:13:51Just look after that beautiful voice.
0:13:51 > 0:13:53- It has been a pleasure meeting you today.- Likewise.
0:13:53 > 0:13:56And I'm so excited about everything you're about to do.
0:13:56 > 0:13:59And we'll be excited to see what it looks like when you've finished.
0:13:59 > 0:14:01- Great, thank you very much. - Lovely to meet you, thank you.
0:14:01 > 0:14:05Two weeks and less than two grand to complete the work?
0:14:05 > 0:14:08That does sound quite ambitious to me.
0:14:08 > 0:14:12TUNE in later to find out whether Stephen SCORES
0:14:12 > 0:14:14and moves his tenant in on time,
0:14:14 > 0:14:17or whether he falls FLAT off that target date!
0:14:20 > 0:14:24I'm in the Lake District market town of Cockermouth,
0:14:24 > 0:14:28and very nice it is, too. Famous for, amongst other things,
0:14:28 > 0:14:31being the birthplace of William Wordsworth.
0:14:31 > 0:14:33I feel a quote coming on.
0:14:33 > 0:14:37I wandered lonely as a cloud
0:14:37 > 0:14:40That floats on high o'er dales and hills
0:14:40 > 0:14:42And all at once, I saw a crowd,
0:14:42 > 0:14:44A host of golden daffodils.
0:14:44 > 0:14:48# Poetry in motion
0:14:48 > 0:14:51# See her gentle sway... #
0:14:52 > 0:14:55Cockermouth does have plenty for Wordsworth devotees
0:14:55 > 0:14:58but there is a shortage of daffs at this time of the year.
0:14:59 > 0:15:03Meanwhile, back in the world of property, not botany,
0:15:03 > 0:15:05this is the house I'm here to see.
0:15:05 > 0:15:10It went up for auction with a guide price of £85,000 plus.
0:15:10 > 0:15:13It's got three bedrooms, two reception rooms. Let's take a look.
0:15:16 > 0:15:19Quite a nice entrance, that, with the steps up
0:15:19 > 0:15:21and this chequered tiling.
0:15:21 > 0:15:26It certainly creates a good impression. First impressions mean everything, as we know.
0:15:26 > 0:15:30And when you come to the front door, mm, not as impressive.
0:15:30 > 0:15:32But not a bad size. Stairs up to your bedrooms there.
0:15:32 > 0:15:36You've got a reception room or living room on either side.
0:15:36 > 0:15:39They seem to be a good size. Good to note you've got double glazing.
0:15:39 > 0:15:43Not so good to note - storage radiators,
0:15:43 > 0:15:47which means central heating is something you'll have to factor into your renovation costs.
0:15:47 > 0:15:51Something else which doesn't quite work is here, into the kitchen, at the rear of the property.
0:15:51 > 0:15:55It doesn't really befit a house of this size.
0:15:55 > 0:15:58Obviously, the units.
0:15:58 > 0:16:01Well, they're original!
0:16:01 > 0:16:05But in this case, original features that are probably going to be removed.
0:16:05 > 0:16:09- HE LAUGHS - As is this serving hatch.
0:16:09 > 0:16:14Don't you love that? Um, I think one thing you might consider doing here
0:16:14 > 0:16:18is taking this whole thing out, creating a nice big open plan kitchen/living area -
0:16:18 > 0:16:21that would be very much 2013.
0:16:21 > 0:16:23Oh, dear!
0:16:23 > 0:16:26I didn't notice this on the way in.
0:16:26 > 0:16:29A slight issue with damp. Oh, look!
0:16:30 > 0:16:34We are in the kitchen, so, eh, mushrooms on toast, anybody?
0:16:38 > 0:16:41As you know, I'm normally quite a FUN GUY,
0:16:41 > 0:16:44but one thing that always gets me worried are the signs of damp.
0:16:44 > 0:16:47So that's going to need investigating.
0:16:48 > 0:16:51Right, back to my plans for the layout changes.
0:16:53 > 0:16:58So, big plan then, downstairs at least, take out this wall.
0:16:58 > 0:17:01But, um... Oh, dear!
0:17:03 > 0:17:07Looks like I missed something rather significant at first glance,
0:17:07 > 0:17:12because standing in the way of the big open-plan kitchen/living area
0:17:12 > 0:17:15is this chimney breast!
0:17:15 > 0:17:19Now, I was going to say one thing you're going to have to do before
0:17:19 > 0:17:22you take out this wall is check whether or not it's supporting.
0:17:22 > 0:17:26But not only is it supporting, it's got this in the way.
0:17:26 > 0:17:29Now that is going to cost a lot and costing a lot of effort
0:17:29 > 0:17:31to strip out, because you can't just take this bit out,
0:17:31 > 0:17:34you have to take everything that's above it out as well.
0:17:34 > 0:17:38It's not impossible. But it might not be within your budget.
0:17:38 > 0:17:44Something you might consider, which I have seen, which I think works really, is to strip this out,
0:17:44 > 0:17:48put a big hole in the middle and put a nice big stove or something,
0:17:48 > 0:17:53like an open fire, in the middle accessed and seen from both sides.
0:17:53 > 0:17:57Do take professional advice when knocking down walls.
0:17:57 > 0:18:00But while I've still got my metaphorical hard hat on,
0:18:00 > 0:18:05what about knocking through from the second reception room to the pantry?
0:18:05 > 0:18:08Time to demolish upstairs? Let's see.
0:18:09 > 0:18:13Now, as I've told you a few times before,
0:18:13 > 0:18:16houses and figuring out what's happening with them
0:18:16 > 0:18:17is not rocket science.
0:18:17 > 0:18:19So, class,
0:18:20 > 0:18:23what do you think's going on here, then?
0:18:23 > 0:18:28Real bad problems in the upstairs landing area there,
0:18:28 > 0:18:30and it continues in the bedrooms.
0:18:32 > 0:18:36At least stripping the wallpaper is not going to be difficult.
0:18:36 > 0:18:40So, what do we reckon? Yeah. The roof is shot, isn't it?
0:18:40 > 0:18:44Some real problems with penetrating damp.
0:18:45 > 0:18:47And it's coming down.
0:18:47 > 0:18:50# Down, down, deeper and down
0:18:50 > 0:18:51# Get down... #
0:18:54 > 0:18:58The damp extends through the whole of the upper floor.
0:18:59 > 0:19:01The bathroom doesn't escape.
0:19:02 > 0:19:05And I think it's probably at its worst in this
0:19:05 > 0:19:08bedroom at the back of the house.
0:19:08 > 0:19:11I think there may be more fauna growing in here than outside.
0:19:13 > 0:19:17Oh, dear. A bit of a disappointment when you come out the back.
0:19:17 > 0:19:22Because you've got very, very little rear space. Certainly no garden.
0:19:22 > 0:19:26This ramshackle sort of outbuilding. That way, you've got a garage
0:19:26 > 0:19:29and a little plot of land to the side of that.
0:19:29 > 0:19:32But either way, not ideal at all.
0:19:32 > 0:19:34But while I am out here,
0:19:34 > 0:19:38the mystery of all that damp upstairs is possibly solved.
0:19:38 > 0:19:40Not ideal.
0:19:41 > 0:19:44The source of the damp has something to do with
0:19:44 > 0:19:46the unusual design of this house.
0:19:46 > 0:19:50It's a classic Art Deco design, which I rather like, but the house
0:19:50 > 0:19:54does have one Art Deco feature that can be troublesome - a flat roof.
0:19:56 > 0:20:00And the rainy UK is not the flat roof's friend.
0:20:00 > 0:20:03I'd be getting that roof checked out for sure.
0:20:03 > 0:20:06What can the auctioneer who sold it tell me about this house,
0:20:06 > 0:20:08guided at £85,000 plus?
0:20:08 > 0:20:10What would he recommend?
0:20:12 > 0:20:17Get your roof on, hack everything off back to the brickwork,
0:20:17 > 0:20:20new kitchen, new bathroom, new windows, although you'd have
0:20:20 > 0:20:25to check out the status whether it was a conservation area or not.
0:20:25 > 0:20:28And refurb everything.
0:20:28 > 0:20:32And, fully refurbished, how much does he think it could achieve?
0:20:32 > 0:20:36I think if this property was fully renovated, reroofed, it would
0:20:36 > 0:20:39be in the region of £245,000.
0:20:39 > 0:20:43What about the rental income? How much could that be?
0:20:43 > 0:20:47I think you would achieve in the region of £750 per calendar month.
0:20:47 > 0:20:51Well, it's a big house. It just needs a new roof.
0:20:51 > 0:20:54Still, are my WORDS WORTH anything?
0:20:54 > 0:20:57Let's find out who bought it when it went under the hammer.
0:20:57 > 0:21:01A substantial three-bedroom detached property having two reception
0:21:01 > 0:21:02rooms, first-floor bathroom.
0:21:02 > 0:21:07Modernisation's required. £85,000.
0:21:07 > 0:21:1085 here. At £85,000 I'm bid now.
0:21:10 > 0:21:12At £85,000.
0:21:12 > 0:21:1786 at the back. 87, 88. 89.
0:21:17 > 0:21:2090, 91,
0:21:20 > 0:21:2292, 93.
0:21:22 > 0:21:25A shake of the head. With you at 92.
0:21:25 > 0:21:27At 92. 93?
0:21:27 > 0:21:3094, 95, 96. 97.
0:21:31 > 0:21:3498, 99, 100.
0:21:34 > 0:21:40The bidding continued, and we rejoin the auction at £150,000.
0:21:40 > 0:21:42At 150, I'm bid.
0:21:42 > 0:21:45One, two. 53.
0:21:45 > 0:21:47A shake of the head at 153.
0:21:47 > 0:21:50With you, sir, against you, madam, against you. Back in?
0:21:50 > 0:21:53153, 154, 155?
0:21:53 > 0:21:56A shake of the head. With you at 154.
0:21:56 > 0:22:02At £154,000, first time on the aisle. 155, back in. Six.
0:22:02 > 0:22:06Shake of the head. With you at 155. At 155, then.
0:22:06 > 0:22:09At £155,000, first time.
0:22:09 > 0:22:12£155,000, second time.
0:22:12 > 0:22:15Third and final time,
0:22:15 > 0:22:17are you done? Well done, madam.
0:22:17 > 0:22:21That successful bid of 155,000, 70,000 over the guide price,
0:22:21 > 0:22:25was made by Susan, who was at the auction with her son, Ben,
0:22:25 > 0:22:26and nephew Oliver.
0:22:28 > 0:22:31Susan and her husband, Ian, live locally,
0:22:31 > 0:22:36and it was Ian, a quantity surveyor, that I met back at the property.
0:22:36 > 0:22:39- Ian, good to meet you.- Nice to meet you, Martin.- Congratulations.
0:22:39 > 0:22:42Why did you want to buy the place, then?
0:22:42 > 0:22:45Well, we've been looking for some time for an opportunity,
0:22:45 > 0:22:47a development opportunity.
0:22:47 > 0:22:50I've been looking at plots of land, and at various houses to do up.
0:22:50 > 0:22:54Right. Talking of development, are you open to anything from building
0:22:54 > 0:22:58somewhere to actually renovating? Is this something you've done before?
0:22:58 > 0:23:00Yeah, I've built my own house before.
0:23:00 > 0:23:03But I've never done anything like this, to be fair.
0:23:03 > 0:23:05It's normally the other way around.
0:23:05 > 0:23:08People start with something like this
0:23:08 > 0:23:10- and progress to building a house.- Yes, they do.
0:23:10 > 0:23:14But to be honest, there aren't that many plots available these days.
0:23:14 > 0:23:16Most of them seem to have been taken up,
0:23:16 > 0:23:19and any that are available seem to be very, very expensive.
0:23:19 > 0:23:22So we saw this as the next logical step.
0:23:29 > 0:23:32Ian lives conveniently close to the property,
0:23:32 > 0:23:35and will project-manage the refurbishment.
0:23:35 > 0:23:38He wasn't necessarily looking for a huge redevelopment project,
0:23:38 > 0:23:42but that's what he's ended up with. Is he daunted by the damp?
0:23:42 > 0:23:44It needs a new roof.
0:23:44 > 0:23:46We're in discussion with the planners
0:23:46 > 0:23:49regarding what we need to do to put a pitched roof on there.
0:23:49 > 0:23:51The house is in a conservation area, as well,
0:23:51 > 0:23:53so the planners are in discussion with the conservation
0:23:53 > 0:23:56- department as to exactly what they're looking for.- Right.
0:23:56 > 0:24:00So you've ditched the idea of putting a renovated flat roof on?
0:24:00 > 0:24:03- You try to move away from that? - Absolutely. Yes.
0:24:03 > 0:24:06It's far better to put a pitched roof on.
0:24:06 > 0:24:09The idea of trying to sell it on with a renovated flat roof,
0:24:09 > 0:24:13personally, I think a pitched roof is a better option.
0:24:13 > 0:24:16Being in a conservation area, Ian suspects that he'll be
0:24:16 > 0:24:20required to use slate on the roof, and he anticipates
0:24:20 > 0:24:24the cost of adding the pitched roof to be around £12,000.
0:24:24 > 0:24:28The house will then be waterproof, but what else is he planning to do?
0:24:29 > 0:24:32Well, it needs an overhaul from top to bottom,
0:24:32 > 0:24:36rewired completely right through, new kitchen, new bathroom.
0:24:36 > 0:24:39There are various areas of plaster that have dropped off,
0:24:39 > 0:24:42so there will be various amounts of plaster patching to do.
0:24:42 > 0:24:45Are you concerned that the damp has gone into any of the joists
0:24:45 > 0:24:46or anything like that?
0:24:46 > 0:24:50We haven't checked that out to any great degree yet, but once we lift the carpets up,
0:24:50 > 0:24:52then if it needs to be done, we will have to do it right.
0:24:52 > 0:24:56There is no point doing it any other way. We will do it right first time.
0:24:57 > 0:25:00And when the place is watertight, Ian does plan
0:25:00 > 0:25:04to knock down that wall with the chimney to open up the kitchen.
0:25:04 > 0:25:06Yeah, we have a chimney breast there.
0:25:06 > 0:25:12That is just going to mean a rather large RSJ or a few RSJs.
0:25:12 > 0:25:15- And a shed load of work. - Yes, that is a bit of work in it.
0:25:15 > 0:25:17But it's the right thing to do.
0:25:17 > 0:25:20At the moment, the kitchen is not really very functional.
0:25:20 > 0:25:23People generally don't want two reception rooms.
0:25:23 > 0:25:26If you can get a kitchen/diner out of it, there is work to do,
0:25:26 > 0:25:27but that's the plan.
0:25:27 > 0:25:31Ian's yet to get a quote for removing the chimney breast, but
0:25:31 > 0:25:34he's set a budget of around £50,000 for all the work,
0:25:34 > 0:25:36including the roof.
0:25:36 > 0:25:39And once the planners have agreed his changes,
0:25:39 > 0:25:42he thinks that construction work will take about three months.
0:25:42 > 0:25:45And will you be actively involved?
0:25:45 > 0:25:47Yes, I'll be managing the project.
0:25:47 > 0:25:50We are fortunate that we've got people in our family
0:25:50 > 0:25:53who are tradespeople, who are much better qualified than me,
0:25:53 > 0:25:55so I will go to work and let them get on with it.
0:25:55 > 0:25:56- Congratulations.- Thank you.
0:25:56 > 0:25:59- Look forward to seeing how you get on.- Thank you.
0:26:00 > 0:26:06Well, Ian has big plans and a big budget to sort this place out.
0:26:06 > 0:26:10Will we see big changes when we come back? Probably.
0:26:10 > 0:26:12You can find out later in the show.
0:26:12 > 0:26:14Coming up -
0:26:14 > 0:26:18this Stoke semi is cracking inside, but lacking outside.
0:26:18 > 0:26:21If you wandered round, you might be put off by what you see.
0:26:21 > 0:26:23It really is a bit of a mess.
0:26:25 > 0:26:29And in Cockermouth, Ian's budget is overgrown, too.
0:26:29 > 0:26:30We have exceeded our budget.
0:26:30 > 0:26:33I'd like to think there's a small profit in it.
0:26:37 > 0:26:39Back now to Camberwell in south London,
0:26:39 > 0:26:42where opera-singer-cum-property- developer-
0:26:42 > 0:26:46cum-Territorial Army reserve Stephen bought this
0:26:46 > 0:26:49one-bed flat for 125,000.
0:26:49 > 0:26:52And with a tenant already waiting in the wings,
0:26:52 > 0:26:55he planned a super-fast turnaround of two weeks.
0:26:55 > 0:26:58And the time frame wasn't the only thing that was tight.
0:26:58 > 0:27:01I'm going to see if I can recycle the kitchen,
0:27:01 > 0:27:05and maybe change the doors, and I'm going to have a go at doing
0:27:05 > 0:27:08that with the bathroom, but I think probably a new bath suite at least.
0:27:08 > 0:27:09And what's your budget here?
0:27:09 > 0:27:12I think I can do it for probably under two grand.
0:27:12 > 0:27:16Stephen was fitting the project in between his rehearsals
0:27:16 > 0:27:20for an opera, and he was in fine voice.
0:27:20 > 0:27:25# Ma n'atu sole
0:27:25 > 0:27:27# Cchiu bello, oi ne'... #
0:27:29 > 0:27:32One translation of the word "opera" means work,
0:27:32 > 0:27:36and Stephen certainly had his cut out with this flat.
0:27:36 > 0:27:41So, two weeks later, was it a case of "boo"s or "bravissimo"?
0:28:02 > 0:28:06It all looks contemporary and smart and that very out-of-place
0:28:06 > 0:28:11fire surround has gone, making the room feel so much more spacious.
0:28:11 > 0:28:14Having agreed with his tenant to refurbish the flat,
0:28:14 > 0:28:18Stephen has created a bedroom that looks inviting and attractive.
0:28:20 > 0:28:24The once dilapidated kitchen has, as Stephen promised,
0:28:24 > 0:28:27been recycled, or maybe this is up-cycling.
0:28:27 > 0:28:30He hasn't replaced the bathroom suite though, but that was
0:28:30 > 0:28:33always going to be tight on his budget.
0:28:33 > 0:28:37In the lounge, we've managed to keep the wooden floors that were
0:28:37 > 0:28:38already here.
0:28:38 > 0:28:44Also managed to fix the plaster on the ceiling and taken away
0:28:44 > 0:28:47this horrible fireplace which I was really pleased we had got rid of.
0:28:47 > 0:28:51By doing that, we've created a nice living area
0:28:51 > 0:28:53and a working or dining area here.
0:28:53 > 0:28:57Actually, I'm really pleased with the way this room has turned out.
0:28:58 > 0:29:02This was never going to be a big renovation project,
0:29:02 > 0:29:05but by dressing the property and putting in new
0:29:05 > 0:29:07floors in the kitchen and in the bathroom,
0:29:07 > 0:29:11as well as painting the whole flat in under two weeks,
0:29:11 > 0:29:15Stephen has been able to revitalise and refresh this place.
0:29:18 > 0:29:21The timetable was quite tight.
0:29:21 > 0:29:25I think I had about two weeks and actually it's been done in 11 days,
0:29:25 > 0:29:27so I'm really pleased with that.
0:29:27 > 0:29:33There have been some very long nights and some very early mornings,
0:29:33 > 0:29:38but it's all been worth it and my tenant moves in tonight.
0:29:38 > 0:29:41I was really pleased that I managed to salvage quite
0:29:41 > 0:29:42a lot of the kitchen.
0:29:42 > 0:29:45All the units are still the same
0:29:45 > 0:29:48and I've gone over them with kitchen cupboard paint
0:29:48 > 0:29:53and then in the bathroom, I've kept all the bathroom suite but added
0:29:53 > 0:29:57a new shower and tiled around that just to make it look a bit fresher.
0:29:59 > 0:30:01With help from family and friends and fiancee,
0:30:01 > 0:30:05Stephen was able to bring it in under the original time frame.
0:30:07 > 0:30:11But what about that other tight number? The two grand budget he set?
0:30:12 > 0:30:16When I discovered I could recycle the kitchen,
0:30:16 > 0:30:20I then thought it's worth investing in a new boiler,
0:30:20 > 0:30:24so I've got a top-of-the-range new boiler installed with a long
0:30:24 > 0:30:27guarantee, which is really worthwhile.
0:30:27 > 0:30:31Actually, I should come in under the 2,000, probably by
0:30:31 > 0:30:33a couple of hundred quid.
0:30:33 > 0:30:37All in all, about £1,800 for the new boiler
0:30:37 > 0:30:40and the materials to finish the job.
0:30:40 > 0:30:43I've learnt, doing this project, that you really can achieve
0:30:43 > 0:30:45a lot in a short space of time.
0:30:45 > 0:30:51It's difficult and I don't think I'd want to set myself up for such
0:30:51 > 0:30:54a tight timetable again.
0:30:54 > 0:30:57Actually, it proves what you can achieve in 11 days.
0:30:57 > 0:30:58I'm really pleased.
0:31:01 > 0:31:05Stephen has every right to be pleased.
0:31:05 > 0:31:08In just 11 days, he's been able to turn this place around with
0:31:08 > 0:31:15a spend of just £1,800, meaning a total outlay of just under 127,000.
0:31:21 > 0:31:25We asked along two local property experts to give us their opinion.
0:31:25 > 0:31:27I think the property has been finished fantastic,
0:31:27 > 0:31:30leaving it plain and simple ready for somebody to come in
0:31:30 > 0:31:31and put their stamp on it.
0:31:31 > 0:31:33I think the standard of finish is absolutely
0:31:33 > 0:31:36bang on for the market that it will appeal to.
0:31:36 > 0:31:40It's not over the top but hits the button right on.
0:31:40 > 0:31:45I think this flat would resell for anywhere between 150 and £155,000.
0:31:45 > 0:31:48This flat could sell for anything between £180-£200,000 mark.
0:31:48 > 0:31:51I think the midway point between those two valuations is
0:31:51 > 0:31:56probably what I was expecting. 170, 175.
0:31:56 > 0:31:59I think the 155 is a bit too low
0:31:59 > 0:32:03but I also think 200 is probably a little bit excessive, actually.
0:32:03 > 0:32:07Taking the middle figure of 175,000 would mean a potential
0:32:07 > 0:32:13profit of around £48,000, minus the usual taxes and fees.
0:32:13 > 0:32:17For 11 days' work, I would have to say "bravo".
0:32:17 > 0:32:20But having already let the property out, he'll be keen to hear
0:32:20 > 0:32:21the rental values.
0:32:21 > 0:32:24This flat would rent for anywhere between
0:32:24 > 0:32:25£850-£900 per calendar month.
0:32:25 > 0:32:27In pounds per calendar month, I think
0:32:27 > 0:32:32this flat would rent for somewhere between 875 and £925.
0:32:32 > 0:32:35Taking the high valuation of 925,
0:32:35 > 0:32:39that would mean a rental yield of around 8%.
0:32:39 > 0:32:42I'm pleased with the rental valuations and they chime with
0:32:42 > 0:32:45what I'll be charging my tenant, so, that's all in line.
0:32:46 > 0:32:48Stephen is happy to rent this one out for now,
0:32:48 > 0:32:50but what about the future?
0:32:50 > 0:32:56Will it be the highs and the lows of opera singing?
0:32:56 > 0:32:59Or more property development for him?
0:32:59 > 0:33:02The thing with opera singing is it can be quite precarious,
0:33:02 > 0:33:05so I think I'll be putting my faith in bricks and mortar
0:33:05 > 0:33:07for my pension plans.
0:33:12 > 0:33:15And if, like Stephen, you fancy putting your faith in bricks
0:33:15 > 0:33:18and mortar, then how about here in Tunstall,
0:33:18 > 0:33:20one of the six towns of Stoke-on-Trent.
0:33:21 > 0:33:24Property in Tunstall is a mix of Victorian terraces
0:33:24 > 0:33:27and also more modern housing estates.
0:33:28 > 0:33:31Not far from the town is one of those very estates
0:33:31 > 0:33:33and good solid properties they tend to be too.
0:33:33 > 0:33:37Hopefully that's the case with the property that was up for auction.
0:33:37 > 0:33:42Three bedrooms, guide price 45,000, plus it's semi-detached.
0:33:42 > 0:33:44Nice elevated position.
0:33:44 > 0:33:46Let's take a look.
0:33:46 > 0:33:49# It's not one that falls apart
0:33:49 > 0:33:53# After once around the block
0:33:53 > 0:33:57# Our love is solid as a rock... #
0:33:59 > 0:34:03So, fairly substantial on the outside. What's it like inside?
0:34:03 > 0:34:05Very interesting design.
0:34:05 > 0:34:08Corridor there leading to the stairs and onto the bedrooms
0:34:08 > 0:34:11and into the living room. It's a good size.
0:34:11 > 0:34:14I like the bay window. Lots of light coming in.
0:34:14 > 0:34:17Not so sure about the fireplace but at least you've got a focal point.
0:34:17 > 0:34:21Open that up and put a real fire in there, maybe a wood-burning stove,
0:34:21 > 0:34:24a new gas fire or a smart electric fire, perhaps.
0:34:26 > 0:34:29Very sensible design through here into the kitchen.
0:34:29 > 0:34:34Again, really good size, really nice proportions.
0:34:34 > 0:34:36Big enough to have a kitchen table there.
0:34:36 > 0:34:39Obviously you're going to need some new units
0:34:39 > 0:34:43and I think double glazing, for sure.
0:34:43 > 0:34:45Again, this really sensible design gives us
0:34:45 > 0:34:49lots of places to put things, this area under the stairs.
0:34:49 > 0:34:51There's this utility area here.
0:34:51 > 0:34:54That corridor that I saw when I came in, is actually here,
0:34:54 > 0:34:57so you've got this circular feel so you can walk round
0:34:57 > 0:34:59and round and round which I quite like.
0:34:59 > 0:35:00Downstairs loo.
0:35:00 > 0:35:05It's just intrinsically liveable and sensible as a design.
0:35:05 > 0:35:08These ex-council properties were designed by people who
0:35:08 > 0:35:11thought what people need from a house.
0:35:11 > 0:35:14And they did it. It's brilliant.
0:35:14 > 0:35:16# When I need love
0:35:18 > 0:35:24# I hold out my hand and I touch love
0:35:24 > 0:35:31# I never knew there was so much love
0:35:31 > 0:35:35# Keeping me warm night and day... #
0:35:37 > 0:35:40Upstairs, my love affair with the layout continues with
0:35:40 > 0:35:44the bedrooms and bathroom just where you need them.
0:35:44 > 0:35:48But I am seeing something up here that doesn't look too clever.
0:35:50 > 0:35:52Now, whenever you look round a house,
0:35:52 > 0:35:56you're always looking for signs of potential movement.
0:35:56 > 0:35:58In its worst case, subsidence.
0:35:58 > 0:36:01Sometimes, you can see it on walls, sometimes you can see it
0:36:01 > 0:36:05around door frames but here's a classic way to spot it.
0:36:05 > 0:36:09Look at the windows. The thing about glass is it doesn't move.
0:36:09 > 0:36:12It could be that the frame moves, you wouldn't notice it.
0:36:12 > 0:36:14Even the brick work moves. You wouldn't notice it.
0:36:14 > 0:36:18But the glass has shown that there has obviously been some
0:36:18 > 0:36:21kind of movement there because it's cracked.
0:36:21 > 0:36:23I know, for sure, that this
0:36:23 > 0:36:27is an area where there is a history of mining.
0:36:27 > 0:36:33Combine the two and my spider senses start tingling.
0:36:33 > 0:36:36Pause that for a moment. Bedrooms, three of them, that is a good size.
0:36:36 > 0:36:40Good size bathroom that looks like it's been recently refurbished,
0:36:40 > 0:36:43which is good. You've got a boiler and two other bedrooms.
0:36:43 > 0:36:47A box room there and through to your third bedroom at the front.
0:36:47 > 0:36:52Oh, look. On its own, that wouldn't worry me,
0:36:52 > 0:36:54maybe just plaster coming off in places.
0:36:56 > 0:37:03But combined with that window, structural survey required.
0:37:03 > 0:37:05# There is a crack
0:37:05 > 0:37:10# A crack in everything
0:37:10 > 0:37:12# That's how the light gets in... #
0:37:14 > 0:37:19Assuming the survey checks out OK, I think you might be quids in here,
0:37:19 > 0:37:22although there is still the back garden to consider.
0:37:24 > 0:37:28Well, out the back, it could do with a bit of a tidy up.
0:37:28 > 0:37:30It's one of those classic auction properties where,
0:37:30 > 0:37:34if you wandered round, you might be put off by what you see.
0:37:34 > 0:37:37It really is a bit of a mess. But you know what?
0:37:37 > 0:37:40There's a lot of space. You got to see through that.
0:37:40 > 0:37:42A lot of brick work has been done so, actually,
0:37:42 > 0:37:44I don't reckon it'll cost too much or take too much time
0:37:44 > 0:37:45to sort this out.
0:37:45 > 0:37:48The nice thing is, nothing at the back.
0:37:48 > 0:37:51So, strange as it may seem, quite a positive.
0:37:53 > 0:37:56Yep, with its £45,000 guide price,
0:37:56 > 0:37:58I've got a good feeling about this one.
0:37:58 > 0:38:01We asked along an expert from the auction house that sold it
0:38:01 > 0:38:03to get his thoughts on the semi.
0:38:04 > 0:38:07First impressions - the property needs a bit of TLC.
0:38:07 > 0:38:08I think the new purchasers,
0:38:08 > 0:38:14possibly going to be putting a new kitchen in, new bathroom, rewiring,
0:38:14 > 0:38:17double glazing, potentially, quite a bit of work required.
0:38:19 > 0:38:23OK, but what might the property fetch on the resale market?
0:38:24 > 0:38:27Once renovated to a decent standard,
0:38:27 > 0:38:32I'd place this on the market somewhere between £65-70,000.
0:38:33 > 0:38:35And on the rental market?
0:38:36 > 0:38:41I'd suggest somewhere around £450-£500 per calendar month.
0:38:41 > 0:38:45Well, it's a lot of house for not a lot of money.
0:38:45 > 0:38:47Definitely want to have a structural survey
0:38:47 > 0:38:50just to check about those cracks, but apart from that, yeah,
0:38:50 > 0:38:54it could deliver a great return or be a good home to live in.
0:38:54 > 0:38:57Let's see who fancied it when it went under the hammer.
0:38:59 > 0:39:03So, lot 70, three-bedroom semi-detached house,
0:39:03 > 0:39:05gas, central heating and gardens.
0:39:05 > 0:39:06Say 40,000 to start?
0:39:06 > 0:39:0738, then?
0:39:08 > 0:39:1238, can we say to start? 38 bid, thank you, at £38,000.
0:39:12 > 0:39:1540, going to say now. At £38,000,
0:39:15 > 0:39:1840, can we say? 40 bid, yeah, 40.
0:39:18 > 0:39:2042? 42.
0:39:20 > 0:39:2144. 46?
0:39:23 > 0:39:26At £44,000, you want to go on?
0:39:26 > 0:39:29You do. 45, one to you, sir, 46?
0:39:30 > 0:39:33No? At £45,000, then,
0:39:33 > 0:39:36lot number 70, 46 anywhere else?
0:39:37 > 0:39:40At £45,000, then, for the first time...
0:39:41 > 0:39:44Just in time. 46 in the aisle,
0:39:44 > 0:39:46at 46. 47?
0:39:46 > 0:39:49You're not looking at me. Are you out?
0:39:49 > 0:39:51You are. Bid's at 46.
0:39:51 > 0:39:53It's in the aisle. 47 anywhere else?
0:39:53 > 0:39:57If not, I'm selling it at 46, then, for the first time,
0:39:57 > 0:40:02£46,000 second time, third and final time, at £46,000.
0:40:02 > 0:40:04You've bought it, sir. Well done.
0:40:06 > 0:40:10And that successful bid of £46,000 was made by Toby,
0:40:10 > 0:40:13who attended the auction with his grandfather.
0:40:14 > 0:40:17Now, this was actually the second of two properties
0:40:17 > 0:40:20that 23-year-old Toby bought at the auction, and
0:40:20 > 0:40:25we'll be seeing what he did with his other purchase later in the series.
0:40:26 > 0:40:28But I met Toby back at the Tunstall semi
0:40:28 > 0:40:32to see what the budding poverty developer is planning here.
0:40:34 > 0:40:36- Toby, good to meet you. - You all right?- Yeah, good.
0:40:36 > 0:40:40- Congratulations.- Thanks.- Tell me why you wanted to buy this place.
0:40:40 > 0:40:43This one, it was a complete...
0:40:43 > 0:40:46I hadn't seen it before, hadn't been in it,
0:40:46 > 0:40:51hadn't looked at the paperwork. It was just the right price.
0:40:51 > 0:40:53You bought it purely on price?
0:40:53 > 0:40:55- Mm-hmm.- At the auction, spur of the moment?- Yeah.
0:40:55 > 0:40:59- Because of my age and...- What do you mean, because of your age?
0:40:59 > 0:41:02Not immature, but obviously not experienced or anything
0:41:02 > 0:41:04- in this sort of thing.- OK,
0:41:04 > 0:41:07and if you make mistakes you can always recover from them - I guess.
0:41:07 > 0:41:11- Hopefully.- It's a terribly dicey strategy. You know that, don't you?
0:41:11 > 0:41:16- Yeah. But it looks all right.- What, from the picture in the catalogue?
0:41:16 > 0:41:20- Yeah! That's it. Grandad said, "Go for it".- Did he?- Yeah.
0:41:20 > 0:41:24- That's OK, isn't it? Granddad's - advice is often good. Brilliant.
0:41:24 > 0:41:28So tell me a bit more about you. You're quite young to be doing this.
0:41:28 > 0:41:30- Yeah. 23.- Right.
0:41:30 > 0:41:34- Not got a job. I had an accident. - An accident?- Yeah, on a motorbike.
0:41:34 > 0:41:36What kind of accident?
0:41:36 > 0:41:40Some bloke pulled in front of me, so I went into him
0:41:40 > 0:41:44- and I've got a nice claim out of it. - What kind of speed was he...
0:41:44 > 0:41:47- Not quick, only like 30mph. - Were you badly injured?
0:41:47 > 0:41:50Yeah, I was in a coma for a bit, brain haemorrhages.
0:41:50 > 0:41:55- How long were you in a coma for? - Nearly three weeks.- Wow.- So...
0:41:55 > 0:41:57What brought you out of the coma?
0:41:57 > 0:42:01- It was an induced coma.- OK. - Because of my swelling and stuff,
0:42:01 > 0:42:04they had to put me into a coma to let everything settle down
0:42:04 > 0:42:07and then bring me back out. That's what they do, apparently.
0:42:07 > 0:42:11So without being too morbid about this, how close to, you know,
0:42:11 > 0:42:12life and death was it?
0:42:12 > 0:42:15It was pretty... I was on a life-support machine.
0:42:15 > 0:42:19- Wow.- So that close. That close.
0:42:19 > 0:42:21You're quite young for that to happen.
0:42:21 > 0:42:25- How does that make you feel about life?- This is an opportunity.
0:42:25 > 0:42:30I've looked at it as, something bad's happened for something good,
0:42:30 > 0:42:32so let's hope that it is good.
0:42:35 > 0:42:37I love Toby's positive outlook
0:42:37 > 0:42:39and while I'm all for investing in property
0:42:39 > 0:42:41and building up a portfolio,
0:42:41 > 0:42:45I do have to take exception to buying blind at auction.
0:42:45 > 0:42:48But providing the structural survey comes back OK,
0:42:48 > 0:42:51Toby might just have got away with that here.
0:42:53 > 0:42:55So tell me what you're going to do to sort it out.
0:42:55 > 0:42:58New kitchen, just rip these out,
0:42:58 > 0:43:04bathroom, keep the suite, just tile and just modernise it, basically.
0:43:04 > 0:43:07- Just get it nice and clean and liveable.- Right.
0:43:07 > 0:43:10And is the idea to rent it out or to do it up and sell it on?
0:43:10 > 0:43:12Erm...
0:43:12 > 0:43:15As a start-off, it was to rent out,
0:43:15 > 0:43:19but obviously, depends how much there is to be made on it.
0:43:19 > 0:43:21If I do make any, then obviously
0:43:21 > 0:43:24I might have to have a little think as to what to do on it.
0:43:24 > 0:43:28If you can remortgage it, you could always start to build up a portfolio.
0:43:28 > 0:43:30Yeah, there is that option as well.
0:43:30 > 0:43:34By the time you're 30, you could have a portfolio of 20 properties.
0:43:34 > 0:43:39- You could retire.- Hopefully. That's where I'm hoping to go with it!
0:43:39 > 0:43:43MUSIC: "You Can Get It If You Really Want" by Jimmy Cliff
0:43:51 > 0:43:54Stepping onto the ladder at those dizzy heights,
0:43:54 > 0:43:57Toby plans to spend three months doing up this property
0:43:57 > 0:43:59and the other one he bought at the auction.
0:43:59 > 0:44:02He's going to do as much of the work as he can himself,
0:44:02 > 0:44:05with family and tradesmen stepping in where required.
0:44:08 > 0:44:12- So what's the budget for sorting this out?- Seven and a half.
0:44:12 > 0:44:15Quite low, but you're doing a lot of the work yourself.
0:44:15 > 0:44:17I'm doing it all myself,
0:44:17 > 0:44:21- so for both it's 15, for both.- Right.
0:44:21 > 0:44:25So half-half. And then whatever I can save is a bonus.
0:44:25 > 0:44:29One house isn't, the other one isn't going to need that sort of money,
0:44:29 > 0:44:32so I have got left over to put into this one again.
0:44:32 > 0:44:34And what about outside?
0:44:34 > 0:44:37Going to have a look at off-road parking because next door's done it
0:44:37 > 0:44:40and I don't know what I'm going to do with the back!
0:44:40 > 0:44:43I haven't even thought about the back yet, but that's as and when.
0:44:43 > 0:44:46- Great.- Wait until the weather warms up.
0:44:46 > 0:44:50So hopefully out of adversity and some fairly horrible circumstances
0:44:50 > 0:44:54- and experiences will come some positive stuff.- Hopefully.
0:44:54 > 0:44:57- Hopefully.- Well, listen, we wish you all the best. Good luck with it.
0:44:57 > 0:45:01- Thank you very much.- We'll be back to see how you get on.- Cheers.
0:45:02 > 0:45:06So, Toby breaking all the rules when it came to buying this place,
0:45:06 > 0:45:09but thankfully, I actually think he's got away with it.
0:45:09 > 0:45:13A great house, and in terms of his concept of investing
0:45:13 > 0:45:17for his future through property, spot on. How will he get on?
0:45:17 > 0:45:19You can find out later on the show.
0:45:22 > 0:45:25Well, the plans and the dreams seemed good at the time.
0:45:25 > 0:45:29But have those dreams turned into reality
0:45:29 > 0:45:33- or has it become a bit of a nightmare?- Let's find out.
0:45:34 > 0:45:37Back, then, to Cockermouth in Cumbria,
0:45:37 > 0:45:39and this three-bed Art Deco house
0:45:39 > 0:45:42which Susan bought at auction for 155,000.
0:45:42 > 0:45:46£155,000. Are you done?
0:45:46 > 0:45:47Well done, madam.
0:45:47 > 0:45:49The house was riddled with damp
0:45:49 > 0:45:54and the culprit appeared to be water ingress from leaks in the flat roof.
0:45:54 > 0:45:58Susan's husband Ian was on hand to talk me through their plans.
0:46:01 > 0:46:04We're in discussions with the planners at the moment,
0:46:04 > 0:46:07just regarding what we need to do to put a pitched roof on there.
0:46:07 > 0:46:09The house is actually in a conservation area as well,
0:46:09 > 0:46:12so the planners are in discussions with the conservation department
0:46:12 > 0:46:15as to exactly what they're looking for.
0:46:15 > 0:46:19Once the permissions were in place, the plan was to spend three months
0:46:19 > 0:46:22replacing the roof and totally refurbishing the interior.
0:46:22 > 0:46:25The budget for the work - £50,000.
0:46:28 > 0:46:31And on a rainy day five months after our first visit,
0:46:31 > 0:46:35we're back to see if the house is still as leaky as a sieve
0:46:35 > 0:46:37or if Ian is home and dry.
0:46:39 > 0:46:43MUSIC: "Dry Your Eyes" by Texas
0:47:01 > 0:47:03Not a dry eye in the house,
0:47:03 > 0:47:06which is transformed from the top...
0:47:08 > 0:47:09..to bottom.
0:47:11 > 0:47:14The new pitched roof is clearly doing its job keeping the rain out
0:47:14 > 0:47:16and looks pretty smart.
0:47:17 > 0:47:20Inside it's all looking clean and, most importantly, dry.
0:47:23 > 0:47:26The biggest changes are in the new kitchen/diner.
0:47:26 > 0:47:31We wanted to remove this wall, which included the chimney breast here.
0:47:31 > 0:47:34The problem that we encountered was, when we actually took the wall out,
0:47:34 > 0:47:36the floor level in here
0:47:36 > 0:47:39was quite a lot different to the floor level in here
0:47:39 > 0:47:42and obviously, as we want it as one room, we needed to fix that.
0:47:42 > 0:47:46So what we had to do was remove all of the boards, all the joists,
0:47:46 > 0:47:47completely replace them.
0:47:47 > 0:47:52We had to build a dwarf wall there to carry the replacement joists,
0:47:52 > 0:47:54replace all the floorboards
0:47:54 > 0:47:58and insulate it, because it's new building regs and requirements,
0:47:58 > 0:48:02and obviously we have a nice level floor now, so everybody's happy.
0:48:04 > 0:48:06It's a fabulous family space
0:48:06 > 0:48:09and they've even managed to squeeze in a downstairs loo
0:48:09 > 0:48:14in the old larder, but there's been a whole lot more work going on
0:48:14 > 0:48:17behind the freshly decorated interior.
0:48:17 > 0:48:19It's been new plumbing right through.
0:48:19 > 0:48:23New electrics right through. New kitchen. New bathroom.
0:48:23 > 0:48:27New doors. Completely skimmed it, completely painted it, etc.
0:48:27 > 0:48:29Except from the structure itself,
0:48:29 > 0:48:30it's almost a new property.
0:48:30 > 0:48:32And what about the new roof?
0:48:32 > 0:48:36Were there any issues getting permission for that?
0:48:36 > 0:48:40The planners and the conservation team were very helpful.
0:48:40 > 0:48:43They helped us decide on the shape of the roof,
0:48:43 > 0:48:47to start with. Secondly, the materials that were required.
0:48:47 > 0:48:51We are in a conservation area and so we have to go for a slate.
0:48:51 > 0:48:54The process itself probably took about six to eight weeks,
0:48:54 > 0:48:58from start to finish. They were very helpful and,
0:48:58 > 0:49:00obviously, they had certain requirements.
0:49:00 > 0:49:03We made sure that we satisfied those requirements.
0:49:03 > 0:49:05The result of that was it went through very promptly.
0:49:07 > 0:49:11I think they have done really well to get permission, and finish,
0:49:11 > 0:49:13in just five months.
0:49:13 > 0:49:16Ian was busy with his day job, so his wife Susan
0:49:16 > 0:49:18project managed the work.
0:49:18 > 0:49:21So, how have things gone on the budget front?
0:49:22 > 0:49:25The original budget was £50,000.
0:49:25 > 0:49:28We have exceeded that by quite a margin, we think.
0:49:28 > 0:49:32We decided to renew the double glazing throughout the house.
0:49:32 > 0:49:34Added to that, there was other bits and pieces,
0:49:34 > 0:49:37like, for example, the floor, that I mentioned earlier.
0:49:37 > 0:49:40Difficult to say, at this stage, exactly what the final costs
0:49:40 > 0:49:42are going to be, but we have gone a significant chunk
0:49:42 > 0:49:45over the 50,000, unfortunately.
0:49:45 > 0:49:52In fact, the extra bits and pieces bumped the spend up to £70,000.
0:49:52 > 0:49:55Added to their purchase price of 155,000,
0:49:55 > 0:50:00their total spent here is 225,000.
0:50:00 > 0:50:03We asked along two local property experts for their thoughts.
0:50:03 > 0:50:06First up, the auctioneer who sold it.
0:50:07 > 0:50:12What a difference there is to before it went to auction.
0:50:12 > 0:50:16He has obviously done... Whatever he has done, he has done right,
0:50:16 > 0:50:19to a very high quality. He obviously started with the roof,
0:50:19 > 0:50:21got rid of that flat roof, the pitched roof.
0:50:21 > 0:50:24New floor coverings, new wall coverings, kitchen, bathroom.
0:50:24 > 0:50:27Added a toilet downstairs, opened the kitchen up.
0:50:27 > 0:50:30Very light, very airy. Very, very good job.
0:50:30 > 0:50:31I am really impressed.
0:50:31 > 0:50:34I think they have done a really lovely job with it.
0:50:34 > 0:50:37It has got a wow factor when you walk in.
0:50:37 > 0:50:39It is light and spacious. I really like the kitchen/dining room -
0:50:39 > 0:50:41a really good room for socialising.
0:50:43 > 0:50:47And what do they think the house might fetch on the rental market?
0:50:47 > 0:50:51I think you would achieve in the region of £650 per calendar month.
0:50:51 > 0:50:56I think it would achieve between £650-£675 per calendar month.
0:50:56 > 0:51:00Those valuations would mean a yield of less than 4%,
0:51:00 > 0:51:04but bearing in mind their total spend of 225,000,
0:51:04 > 0:51:07what might they achieve on the resale market?
0:51:07 > 0:51:10If I were to market this property in the current market,
0:51:10 > 0:51:18I would market it at £250,000, to achieve between £240,000 and £250,000.
0:51:18 > 0:51:22I think you would adopt an asking price of £245,000,
0:51:22 > 0:51:26with a view, perhaps, to achieving £240,000.
0:51:26 > 0:51:29We have exceeded our budget. I'd like to think there would be a small profit.
0:51:29 > 0:51:35Well, a pre-tax profit of between 15 and 25,000 is not too bad.
0:51:35 > 0:51:40And this was their first go at renovating an older property,
0:51:40 > 0:51:43and Ian and his wife Susan can take what they have learned here
0:51:43 > 0:51:45on to their next project.
0:51:53 > 0:51:56Time now to see if lessons have also been learned
0:51:56 > 0:51:58here in Tunstall, Stoke-on-Trent,
0:51:58 > 0:52:03where this three-bed semi was bought blind by 23-year-old Toby,
0:52:03 > 0:52:04for £46,000.
0:52:04 > 0:52:10Toby appeared unfazed by cracks in the walls and windows and, in fact,
0:52:10 > 0:52:14this was one of two properties which Toby bought at the auction,
0:52:14 > 0:52:18as his first steps towards a career in property development.
0:52:19 > 0:52:22Is the idea to rent it out or do it up and sell it on?
0:52:22 > 0:52:25As a start-off, it was to rent out,
0:52:25 > 0:52:29but, obviously, it depends how much there is to be made on it.
0:52:29 > 0:52:32If I do make any, then, obviously, I might have to have a little think
0:52:32 > 0:52:34as to what to do on it.
0:52:34 > 0:52:37But if you can remortgage it, you could always start to build up
0:52:37 > 0:52:39- a portfolio. - There is the option, as well.
0:52:39 > 0:52:43By the time you're 30, you could have a portfolio of 20 properties.
0:52:43 > 0:52:48- You can retire!- Hopefully! That is where I am hoping to go with it!
0:52:48 > 0:52:53Toby was planning to spend £7,500 doing the property up
0:52:53 > 0:52:56and aimed to have this one, and his other auction purchase,
0:52:56 > 0:52:58renovated within three months.
0:52:58 > 0:53:01Nine weeks after our first visit,
0:53:01 > 0:53:05we are about to see if a Tunstall semi has been a real eye opener
0:53:05 > 0:53:07for Toby.
0:53:07 > 0:53:12- # Suddenly, I see- Suddenly, I see - This is what I want to be
0:53:12 > 0:53:15- # Suddenly, I see- Suddenly, I see
0:53:15 > 0:53:18# Why the hell it means so much to me
0:53:18 > 0:53:19# Suddenly, I see
0:53:19 > 0:53:24- # This is what I want to be Suddenly, I see- Suddenly, I see
0:53:24 > 0:53:26# Why the hell it means so much to me. #
0:53:29 > 0:53:32They say that seeing is believing and, while I see
0:53:32 > 0:53:36there are still a few finishing touches to, er, finish,
0:53:36 > 0:53:39I do believe you might be well under way to nailing this one, Toby.
0:53:40 > 0:53:42Painted everywhere.
0:53:42 > 0:53:45Carpeted, linoed. New kitchen -
0:53:45 > 0:53:49halfway through a new kitchen - bit of plastering.
0:53:49 > 0:53:51That's pretty much it inside.
0:53:54 > 0:53:59Toby did get help from a certified installer for the gas and electrics,
0:53:59 > 0:54:02but he's pretty much done the work outside himself.
0:54:02 > 0:54:04The bit I've enjoyed the most
0:54:04 > 0:54:08is the gardens, cos it's been rubbish weather, but it's been nice
0:54:08 > 0:54:10to be outside
0:54:10 > 0:54:14and be able to see... It's a big change.
0:54:14 > 0:54:20Out the front, we put in a double drive and then, out the back,
0:54:20 > 0:54:23just tried to put fences up. There was nothing.
0:54:23 > 0:54:26It's still a work in progress! Getting there, though.
0:54:28 > 0:54:32Yeah, it's definitely getting there! What about the cracks on the windows
0:54:32 > 0:54:35and walls? Did those cause any problems?
0:54:35 > 0:54:42Structurally, the building was fine. Didn't look it,
0:54:42 > 0:54:44but it was just cosmetic, in the end.
0:54:44 > 0:54:48I did get everything checked out, so, happy with that.
0:54:52 > 0:54:56Toby has been so hands-on here, he even moved in during the build,
0:54:56 > 0:54:58in order to maximise his time on site.
0:54:58 > 0:55:01He did get help with plastering, plumbing, electrics
0:55:01 > 0:55:03and the new double glazing.
0:55:03 > 0:55:07Oops! Missed a bit there, Toby! But how has he found
0:55:07 > 0:55:12his first steps into the wonderful world of property development?
0:55:12 > 0:55:15Biggest thing that I've learned doing this - time management.
0:55:15 > 0:55:19Time management is the biggest problem that I've had,
0:55:19 > 0:55:24trying to get people in on the days that they are supposed to be here,
0:55:24 > 0:55:30trying to get everything done, obviously, for the deadline.
0:55:30 > 0:55:33But, yeah, in the end it's worked out.
0:55:33 > 0:55:35It's got there in the end.
0:55:35 > 0:55:40By the time he manages to finish the finishing touches, Toby will be
0:55:40 > 0:55:44pretty much bang on schedule, but what about his £7,500 budget?
0:55:45 > 0:55:50My budget has gone OK, in my eyes.
0:55:50 > 0:55:53I have overspent by double
0:55:53 > 0:55:57what I thought. By the end of everything, it will be double.
0:55:57 > 0:56:00But I have also done a lot more than what I planned to do,
0:56:00 > 0:56:06like, the driveway, so it's just
0:56:06 > 0:56:08all the bits start to total up.
0:56:08 > 0:56:11And total up they have...
0:56:11 > 0:56:13Toby's total spend is now 61,000.
0:56:13 > 0:56:19We asked along two local property experts,
0:56:19 > 0:56:23to get their thoughts on the renovation. First up, the expert
0:56:23 > 0:56:26who saw the property before work began.
0:56:26 > 0:56:29The off-street parking is a bonus.
0:56:29 > 0:56:33Whether it is lived in or owner-occupied or rented out,
0:56:33 > 0:56:35it's to a decent standard to do whichever.
0:56:35 > 0:56:38I think it's really nice. Got some good room sizes,
0:56:38 > 0:56:40especially the kitchen/diner - really good room.
0:56:40 > 0:56:44Downstairs toilet, as well. Really good stuff. Parking on the front
0:56:44 > 0:56:48is also going to be a plus point, so, yeah.
0:56:48 > 0:56:52And what do they think the property would fetch on the resale market?
0:56:52 > 0:56:57I'd anticipate a retail sale price of £65,000-£70,000.
0:56:57 > 0:57:01I'd place this on the market somewhere around £70,000.
0:57:01 > 0:57:06Those resale valuations would mean a profit before tax and expenses
0:57:06 > 0:57:10of £4,000-£9,000. But what about the rental market?
0:57:13 > 0:57:16Going to be looking at a figure for rental of £450 per calendar month.
0:57:16 > 0:57:19We'd place this somewhere around £500 per calendar month.
0:57:21 > 0:57:23That is more like it.
0:57:23 > 0:57:27Those rental valuations would give Toby a yield around the 9%-10% mark.
0:57:27 > 0:57:30So, will Toby sell or will it be one of the first properties
0:57:30 > 0:57:34in his rental portfolio?
0:57:34 > 0:57:39I'd rather rent it out, cos I've still obviously got capital then
0:57:39 > 0:57:44and still making money out of it. So, that is my preferred thing to do.
0:57:44 > 0:57:48But if someone's willing to buy it, then they can have it.
0:57:50 > 0:57:53Well, that's it for today. We will be back next time
0:57:53 > 0:57:57with more news from the front line of property developing.
0:57:57 > 0:58:00We look forward to seeing you then, for more Homes Under the Hammer.
0:58:00 > 0:58:01- Goodbye.- Goodbye!