0:00:02 > 0:00:05Nowadays, people are deciding that investing in property is how you can
0:00:05 > 0:00:06get the most out of your money.
0:00:06 > 0:00:11Yes, and a healthy property investment always starts with buying wisely.
0:00:11 > 0:00:15One place you might be able to do that is at your local property auction.
0:00:40 > 0:00:43People buy at auction for all kinds of different reasons.
0:00:43 > 0:00:46It could be a pension plan, or regular rental income.
0:00:46 > 0:00:49Believe it or not, even for somewhere to live!
0:00:49 > 0:00:52Yes, so what were the stories behind the properties at the auctions
0:00:52 > 0:00:54on today's show?
0:00:55 > 0:01:00I make a shocking discovery at this Derbyshire three-bed semi.
0:01:00 > 0:01:03Right at the top of the stairs, the electrics...
0:01:03 > 0:01:05Everything's going on here!
0:01:05 > 0:01:06No shocks for me,
0:01:06 > 0:01:10but the views from this Somerset bungalow take my breath away.
0:01:10 > 0:01:13It's all about that! Oh, my word!
0:01:16 > 0:01:20Not as spectacular, but plenty of open space for me in South London.
0:01:20 > 0:01:24This is the main thing, for me. This big, massive feature window.
0:01:24 > 0:01:25I like it.
0:01:27 > 0:01:29All these properties have been sold at auction.
0:01:29 > 0:01:32We'll find out who bought them and what they paid for them
0:01:32 > 0:01:35- when they went under the hammer. - Too late, it's gone.
0:01:42 > 0:01:45Ilkeston in Derbyshire is a popular commuter town
0:01:45 > 0:01:47for both Derby and Nottingham.
0:01:47 > 0:01:49It boasts plenty of local amenities,
0:01:49 > 0:01:53with a new railway station due to open later in 2015.
0:01:54 > 0:01:58Its thriving market is also the site of an annual charter fair,
0:01:58 > 0:02:02which was granted by King Henry III in 1252
0:02:02 > 0:02:05and is one of the largest street fairs in Europe.
0:02:06 > 0:02:09Now, to a different kind of Ilkeston market.
0:02:09 > 0:02:12This is Homes Under The Hammer, so of course,
0:02:12 > 0:02:15I'm talking about the housing market.
0:02:15 > 0:02:19We've got a three-bedroom semi on this nice, quiet cul-de-sac.
0:02:19 > 0:02:21Here it is. It looks great from the outside.
0:02:21 > 0:02:25The guide price, £50,000 plus.
0:02:25 > 0:02:28I'm going to go and see what awaits us on the inside.
0:02:28 > 0:02:32The stone cladding, well, might not be to everyone's taste,
0:02:32 > 0:02:36but there is plenty of space for off-road parking on this driveway.
0:02:36 > 0:02:39Oh, and, er...a big fridge! Definitely a plus(!)
0:02:39 > 0:02:43Straight inside, stairs leading up and into the lounge.
0:02:43 > 0:02:48Now, surprisingly, it's a little bit smaller on the inside.
0:02:48 > 0:02:51You've got this huge driveway, this lovely big old garden
0:02:51 > 0:02:54and then, not such a big house in the middle.
0:02:54 > 0:02:57But double glazing, a big tick there, a nice little view
0:02:57 > 0:03:01out into the garden, although that window seems rather odd.
0:03:01 > 0:03:04It needs to be a bit bigger or moved into the middle,
0:03:04 > 0:03:07which of course brings my attention to this -
0:03:07 > 0:03:11lots of damp under the window areas, so I'd certainly get that seen to.
0:03:11 > 0:03:14And over here, if you didn't get enough of it on the outside,
0:03:14 > 0:03:18you've got some more stone cladding just here
0:03:18 > 0:03:20and up here, some wood-effect cladding,
0:03:20 > 0:03:22so you may want to give it a modern feel
0:03:22 > 0:03:25because you have got quite a good space here
0:03:25 > 0:03:28because look, you've just got wallpaper over wallpaper.
0:03:28 > 0:03:31It really does need some decorating.
0:03:31 > 0:03:33Let's hope the kitchen's a little bit better.
0:03:35 > 0:03:39OK, the kitchen... You've really got to look beyond what's here.
0:03:39 > 0:03:43You've got to imagine what this would be like once you've
0:03:43 > 0:03:48put in a lovely shiny new kitchen and... Oh, downstairs bathroom.
0:03:48 > 0:03:52Now, that space could definitely be put to better use, I think.
0:03:52 > 0:03:55Dining table, French doors out to the garden.
0:03:55 > 0:03:59But the big question is, could you house that bathroom upstairs?
0:03:59 > 0:04:03Because currently, you've got this little bit of odd space through here.
0:04:03 > 0:04:06I'm not even sure this is properly insulated.
0:04:06 > 0:04:09This might have been the outside area at one point.
0:04:09 > 0:04:12You've got a loo through there, and a little bit of storage space,
0:04:12 > 0:04:15which I think might have been the coal bunker.
0:04:15 > 0:04:17So you could fiddle around with that,
0:04:17 > 0:04:21but I really need to see whether we can get that up there.
0:04:21 > 0:04:22I'm going on a mission.
0:04:22 > 0:04:26# Can't stop now cos I'm on a mission
0:04:26 > 0:04:30# I am a woman on a mission... #
0:04:30 > 0:04:32Yeah, it's a familiar cry on Homes Under The Hammer -
0:04:32 > 0:04:35move the bathroom upstairs.
0:04:35 > 0:04:38If you succeed with that, there's still the kitchen to revamp
0:04:38 > 0:04:41and the decor to update.
0:04:41 > 0:04:43Does it get any better?
0:04:43 > 0:04:48Right at the top of the stairs, the fuse board... The electrics...
0:04:48 > 0:04:49Everything's going on here!
0:04:49 > 0:04:52It doesn't look safe and I'd certainly get rid of that and put
0:04:52 > 0:04:55it somewhere where it looks a little more attractive and in-keeping.
0:04:55 > 0:04:58So now, let's talk about the bathroom.
0:04:58 > 0:05:01We want to get the bathroom upstairs, if possible.
0:05:01 > 0:05:05You've got a couple of options. Now I've seen the bedroom spaces, you've got a double,
0:05:05 > 0:05:08two singles here, a very small box room, in fact.
0:05:08 > 0:05:12You could potentially bring that bathroom up here,
0:05:12 > 0:05:15put it in the box room, but then you'd be losing a bedroom
0:05:15 > 0:05:17and turning it into a two-bed house. Not ideal.
0:05:17 > 0:05:21Another option would be, maybe you could find some room to
0:05:21 > 0:05:23slot it into the big bedroom here,
0:05:23 > 0:05:26but there's a great big chimneybreast in the way over there
0:05:26 > 0:05:30and I'm not sure that would do any favours to the big bedroom.
0:05:30 > 0:05:35Might damage the value of the house by then having another small room,
0:05:35 > 0:05:38or you could just leave it where it is, downstairs.
0:05:38 > 0:05:41I think it all depends on who wants to buy the house,
0:05:41 > 0:05:45their budget and how they want to live.
0:05:45 > 0:05:49Lots to think about here and lots of potential layout options,
0:05:49 > 0:05:52but one thing's for sure, the whole house is in need of a complete
0:05:52 > 0:05:56renovation to bring it into the 21st century.
0:05:56 > 0:06:00Out back, there's a big garden, which does need some work,
0:06:00 > 0:06:04but looks perfect for soaking up the summer sun.
0:06:04 > 0:06:09Time to get the opinion of the agent from the auction house who sold it.
0:06:09 > 0:06:12My first impressions of the property are it certainly is a mess.
0:06:12 > 0:06:16There's a lot of work to be done here to bring it up to speed, ready for occupation.
0:06:16 > 0:06:19It certainly needs a damp-proof course and a membrane to give it
0:06:19 > 0:06:21some insulation, with regards to the flooring.
0:06:21 > 0:06:24It's then going to need a kitchen, a bathroom
0:06:24 > 0:06:26and possibly some remodelling of the room arrangements.
0:06:26 > 0:06:30I would expect the work to cost somewhere in the region
0:06:30 > 0:06:33of £20,000 to £25,000 to put this house back into a condition
0:06:33 > 0:06:36that's suitable for modern occupation.
0:06:36 > 0:06:40And with a guide price of £50,000, that could be a £75,000 outlay.
0:06:40 > 0:06:43Would that be a worthwhile investment?
0:06:43 > 0:06:47Once completed to a good standard, I would expect this property to
0:06:47 > 0:06:51be worth somewhere in the region of £105,000 to £110,000.
0:06:51 > 0:06:54And what kind of rental could you expect?
0:06:54 > 0:06:58Once the work was completed, if the property were offered to let,
0:06:58 > 0:07:01I would expect it to achieve somewhere in the region
0:07:01 > 0:07:04of £575 per calendar month.
0:07:04 > 0:07:08Well, there's certainly room for improvement with this house.
0:07:08 > 0:07:11Does the bathroom stay downstairs,
0:07:11 > 0:07:14or is it worth spending the money and moving it up there?
0:07:14 > 0:07:17There's lots to do with the downstairs area too.
0:07:17 > 0:07:22Let's find out exactly who wanted to take this project on at the auction.
0:07:22 > 0:07:24Lot number 19.
0:07:24 > 0:07:28There is a proxy bid in on this one, ladies and gentlemen,
0:07:28 > 0:07:29which I will field.
0:07:29 > 0:07:32Start me where you like. £55,000 for it, may I say?
0:07:32 > 0:07:3555? 52? Don't mind where we begin.
0:07:35 > 0:07:3752,000?
0:07:37 > 0:07:4152? I will start the bidding at 52,000 on a proxy bid.
0:07:41 > 0:07:44At 52,000. 53 from somewhere else?
0:07:44 > 0:07:4753. 54.
0:07:47 > 0:07:4955. 56.
0:07:49 > 0:07:5257. 58.
0:07:52 > 0:07:5459. 60,000.
0:07:54 > 0:07:58The proxy bid dropped out at £65,000
0:07:58 > 0:08:03and it was left to two bidders in the room to fight till the end.
0:08:03 > 0:08:07We rejoin with the price at £67,000.
0:08:07 > 0:08:1167. Five. 68.
0:08:11 > 0:08:13500. 69.
0:08:13 > 0:08:16500. 70,000.
0:08:16 > 0:08:18500. 71.
0:08:18 > 0:08:2171,500, sir?
0:08:21 > 0:08:22No?
0:08:22 > 0:08:26£71,500 somewhere else?
0:08:26 > 0:08:31At 71,000, once, twice, third opportunity...
0:08:31 > 0:08:34Too late, it's gone. 71,000, thank you.
0:08:35 > 0:08:39The successful bidders, at £71,000, were property developers
0:08:39 > 0:08:41and best mates Richard and Paul.
0:08:41 > 0:08:45I met them back at their new purchase to hear their plans.
0:08:46 > 0:08:49# Oh, you're my best friend... #
0:08:49 > 0:08:52- Paul and Richard, congratulations.- Thank you.
0:08:52 > 0:08:56What was it like for you on auction day? Did you expect to get this?
0:08:56 > 0:08:58Well, not really.
0:08:58 > 0:09:01We went a little bit over budget on this particular one.
0:09:01 > 0:09:05Why didn't you contain yourselves? Whose fault really was it?
0:09:05 > 0:09:08We tried to. Paul was bidding at the time and yes...
0:09:08 > 0:09:09It went over a little bit.
0:09:12 > 0:09:15Actually, it was four grand over their budget, meaning they have now
0:09:15 > 0:09:19set themselves a limit of £12,000 to £15,000 for the renovations.
0:09:19 > 0:09:22With Paul handling the project management
0:09:22 > 0:09:25and Richard's 30 years in the building trade, these guys
0:09:25 > 0:09:29certainly have enough experience to make this a successful venture.
0:09:32 > 0:09:36- And Saturdays and Sundays off? - No, no. Sundays and Mondays off.
0:09:36 > 0:09:39Why do you take Sunday and Monday and not Saturday and Sunday?
0:09:39 > 0:09:43Because we play golf on a Monday and it's cheap on a Monday
0:09:43 > 0:09:46- and it's not so busy. So, yes, that's why.- Hold on a minute.
0:09:46 > 0:09:48You've made your own weekend a Sunday and a Monday
0:09:48 > 0:09:51- because the golf course is cheaper on a Monday?- Oh, yeah.
0:09:51 > 0:09:54- Is that what you're saying?- Yes, yeah. And it's a lot quieter as well.
0:09:54 > 0:09:58- So, it works out all round, doesn't it, Rich?- Yeah.
0:09:58 > 0:10:00# We're the sultans of swing... #
0:10:00 > 0:10:03I think it's safe to say these two get on famously
0:10:03 > 0:10:04on and off the course
0:10:04 > 0:10:07but they have a "fairway" to go to get out of the rough here.
0:10:07 > 0:10:10So, what's the plan?
0:10:10 > 0:10:14Strip it back to bare bricks, take the chimney breast out.
0:10:14 > 0:10:18We need to make a little bit more space, both upstairs and downstairs,
0:10:18 > 0:10:21so the chimney breast will come out, to get that bathroom upstairs...
0:10:21 > 0:10:23Hold on a minute.
0:10:23 > 0:10:26The big news is you are going to move that bathroom upstairs,
0:10:26 > 0:10:28but that means surely, you're going to be reducing
0:10:28 > 0:10:31one of the bedrooms or even taking a bedroom away?
0:10:31 > 0:10:35- We'll keep it as a three-bedroom. - How are you going to do that?
0:10:35 > 0:10:38Obviously, the large bedroom, which it is at the moment,
0:10:38 > 0:10:40that will be split, so we'll be able to still keep the larger
0:10:40 > 0:10:44section of that room as a bedroom, so we'll still have three bedrooms.
0:10:44 > 0:10:48- We'll get that bathroom upstairs. - It'll be smaller.- Where is the bathroom going?
0:10:48 > 0:10:50In that big room at the back of the property
0:10:50 > 0:10:51or at the front of the property?
0:10:51 > 0:10:54At the back, as you walk through the door, that will be...
0:10:54 > 0:10:58It'll be there, on the left-hand side.
0:10:58 > 0:11:00It all sounds very tricky to make that bathroom move work,
0:11:00 > 0:11:05while getting the best out of that main bedroom.
0:11:05 > 0:11:08Guys, how can you do this on your relatively low budget?
0:11:08 > 0:11:10- I'm intrigued.- Working hard!
0:11:10 > 0:11:14Working long hours. You might not even be able to play golf on Monday!
0:11:14 > 0:11:17You might need to rein the Mondays in a bit, boys!
0:11:21 > 0:11:25Well, I reckon happy Mondays will have to be put to one side
0:11:25 > 0:11:27until this project is finished.
0:11:27 > 0:11:30A timescale estimated to be 16 weeks,
0:11:30 > 0:11:34but I don't think that will upset our bosom buddies too much.
0:11:34 > 0:11:37So, come on, what is the secret to your long friendship?
0:11:37 > 0:11:40You work together, you play together, golf...
0:11:40 > 0:11:41I mean, really, it is
0:11:41 > 0:11:44quite incredible that you two are such good mates.
0:11:44 > 0:11:48We tend to play on each other's faults a lot and anybody else...
0:11:48 > 0:11:51when we've worked for other people, tend to think we're doing
0:11:51 > 0:11:56a lot of arguing and we're not, it's just how we do things, aren't we?
0:11:56 > 0:11:59- That's right.- To us, it's sort of not like coming to work.
0:11:59 > 0:12:02It's sort of just meeting your best mate and having a laugh.
0:12:02 > 0:12:04Guys, it really has been lovely meeting you today
0:12:04 > 0:12:08- and I'm so excited to see the end result. Congratulations.- Thank you.
0:12:08 > 0:12:11- Thank you. Well done. - Thank you very much.
0:12:11 > 0:12:15So, Paul and Richard may have paid a little bit over the odds,
0:12:15 > 0:12:18but they have grand plans for this place.
0:12:18 > 0:12:22Let's hope they manage to do it on the 12 to 15 grand,
0:12:22 > 0:12:23as they suggested.
0:12:23 > 0:12:25It does sound quite tight to me
0:12:25 > 0:12:29and all the work that's involved in moving that bathroom?
0:12:29 > 0:12:32Let's hope the golfing duo stay on par with their budget
0:12:32 > 0:12:36and they swing into action! Join me later in the programme
0:12:36 > 0:12:39and you can find out how the chaps get on.
0:12:42 > 0:12:46Portishead is a coastal town on the Severn Estuary,
0:12:46 > 0:12:50only five miles from the city of Bristol.
0:12:50 > 0:12:54In the 1860s, a pier and deepwater docks were built here to handle
0:12:54 > 0:12:59ships too large to travel up the River Avon to the port of Bristol.
0:12:59 > 0:13:01Today, the dock is well preserved
0:13:01 > 0:13:05and has become the centre of the town's new marina development.
0:13:05 > 0:13:08Well, it's a lovely part of north Somerset,
0:13:08 > 0:13:10right by the side of the Bristol Channel,
0:13:10 > 0:13:13easy access into Bristol, onto the M5,
0:13:13 > 0:13:16with all those connections, down to the West Country and the like.
0:13:16 > 0:13:19Some interesting housing estates as well
0:13:19 > 0:13:22and it's on one of those...the property I'm here to see is this.
0:13:22 > 0:13:26It's a bungalow, it's actually a linked to detached, which means
0:13:26 > 0:13:30it's got a little bit connecting it to the neighbouring bungalow.
0:13:30 > 0:13:34£200,000 plus was the guide price. Lots and lots of sort of...
0:13:34 > 0:13:39Well, tarmac and stairs and concrete and things on the outside.
0:13:39 > 0:13:42Intriguing. Intriguing, intriguing.
0:13:42 > 0:13:46Described as a split-level bungalow arranged over ground
0:13:46 > 0:13:49and upper ground levels, beneath a pitched roof, you can
0:13:49 > 0:13:51see that someone at some point has put
0:13:51 > 0:13:54a lot of love into the design and the upkeep of the building.
0:13:54 > 0:13:57A few cracks here and there, but generally,
0:13:57 > 0:14:00it's looking pretty smart. What have we got, then?
0:14:00 > 0:14:04Straight in to a really interesting sort of holding area, if you like.
0:14:04 > 0:14:06I don't know what this bit is.
0:14:06 > 0:14:09There's a little bit there, the sliding doors out to the garden.
0:14:09 > 0:14:13And a sort of open plan feel kitchen. It's pretty pleasant.
0:14:13 > 0:14:16You can imagine using this space, definitely.
0:14:16 > 0:14:19A bit of a breakfast bar, which is good.
0:14:19 > 0:14:21I mean, the kitchen is certainly dated
0:14:21 > 0:14:24and would benefit from a bit of updating, but whatever.
0:14:24 > 0:14:27There's bedrooms going off that way. Into...
0:14:27 > 0:14:31A kind of classic layout of its era, I think. 1970s, my guess is.
0:14:31 > 0:14:36Into this sort of dining area here, so nothing that extraordinary yet.
0:14:36 > 0:14:38Through a little archway, again very 1970s,
0:14:38 > 0:14:42into a really nice size living area there.
0:14:42 > 0:14:45But I've actually been teasing you.
0:14:45 > 0:14:48Not that exciting an entrance when you come in,
0:14:48 > 0:14:51not that particularly brilliant an aspect.
0:14:51 > 0:14:52Nice quiet road, or whatever.
0:14:52 > 0:14:55Nothing too mind-boggling, in terms of the kitchen,
0:14:55 > 0:14:58into that room there. You know what?
0:14:58 > 0:14:59It's all about that!
0:14:59 > 0:15:02Oh, my word!
0:15:02 > 0:15:04What an extraordinary view!
0:15:04 > 0:15:07The whole of the Bristol Channel stretching in front of you.
0:15:07 > 0:15:11How fantastic is that?
0:15:11 > 0:15:14# I can see for miles and miles
0:15:14 > 0:15:20# And miles and miles and miles. #
0:15:22 > 0:15:26It really is an absolutely stunning view,
0:15:26 > 0:15:29but this bungalow can also let me see into the past.
0:15:29 > 0:15:33It's funny how each era of architectural design
0:15:33 > 0:15:36has its own signatures, isn't it?
0:15:36 > 0:15:41When it came to the 1970s and early 1980s,
0:15:41 > 0:15:42it was feature fireplaces.
0:15:42 > 0:15:46Have you got one like this?
0:15:46 > 0:15:48It's lovely(!)
0:15:48 > 0:15:50At the rear of this split-level bungalow,
0:15:50 > 0:15:53some steps lead up to three bedrooms.
0:15:53 > 0:15:54Two are a good size,
0:15:54 > 0:15:58with lots of light coming in through the bay windows.
0:15:58 > 0:16:04There's also a box room, but, apart from that really dated bathroom,
0:16:04 > 0:16:07everything else is in pretty good order.
0:16:08 > 0:16:12Well, out through this little sort of side porch into the rear
0:16:12 > 0:16:17of the property and yet more amazing amounts of landscaping.
0:16:17 > 0:16:19This kind of stuff costs an absolute fortune
0:16:19 > 0:16:21if you were to get somebody to do it.
0:16:21 > 0:16:24The amount of material, soil, whatever, you're going
0:16:24 > 0:16:28to have to shift, but you come down these steps.
0:16:28 > 0:16:32Obviously the house is built on a fairly steep hill and,
0:16:32 > 0:16:35as a result of that, it sort of slopes off towards the back here,
0:16:35 > 0:16:38which gives you that amazing room upstairs with the views.
0:16:38 > 0:16:39But also the way it's built,
0:16:39 > 0:16:44it gives you also additional storage underneath, which is really nice.
0:16:44 > 0:16:47The garden, it doesn't have the views but it's a nice space.
0:16:47 > 0:16:51You've got a little pond, but it's just an additional bonus to
0:16:51 > 0:16:54a house that's already got me well sold.
0:16:54 > 0:16:56# Ooh, baby, here I am
0:16:56 > 0:17:00# Signed, sealed, delivered, I'm yours. #
0:17:02 > 0:17:06Yes, there's no denying this view alone is a fantastic selling point,
0:17:06 > 0:17:07and, with the property in good shape,
0:17:07 > 0:17:10this almost feels like the perfect package.
0:17:12 > 0:17:14But time for a second opinion.
0:17:14 > 0:17:18We asked along a local estate agent for his thoughts on this bungalow
0:17:18 > 0:17:21that was guided at £200,000 plus.
0:17:23 > 0:17:25I think it's a great property.
0:17:25 > 0:17:29It has all of the things that the target market will like in it,
0:17:29 > 0:17:30particularly for Portishead,
0:17:30 > 0:17:32the flat garden, which is really, really rare,
0:17:32 > 0:17:36and, of course, the fantastic view.
0:17:36 > 0:17:38There are all sorts of things you could do with it
0:17:38 > 0:17:40because it's a very, very flexible place.
0:17:40 > 0:17:43They range from just refurbishing it as the place is,
0:17:43 > 0:17:46through to extending it through to the roof space, that sort of thing.
0:17:46 > 0:17:47The layout is great.
0:17:47 > 0:17:50There's one thing I would probably change, which is
0:17:50 > 0:17:53knock through the kitchen into the dining room and make that open-plan
0:17:53 > 0:17:55so that you can get advantage of the views.
0:17:55 > 0:17:57But, other than that, just finish it to a reasonable quality
0:17:57 > 0:17:59and then resell it, I think.
0:17:59 > 0:18:02So, what sort of returns could this bungalow make?
0:18:02 > 0:18:04First the resale value.
0:18:04 > 0:18:08Once renovated, the property could achieve between £360,000
0:18:08 > 0:18:10and £380,000.
0:18:10 > 0:18:11And the rentals?
0:18:11 > 0:18:14Rental market somewhere, once it's renovated,
0:18:14 > 0:18:17between £950 and £1,000 per calendar month.
0:18:18 > 0:18:21Well, from a not THAT inspiring start,
0:18:21 > 0:18:26this little bungalow has proved itself to be an absolute pearler.
0:18:26 > 0:18:29I like the layout. Yeah, it needs a bit of modernisation,
0:18:29 > 0:18:32but you would buy it for that, wouldn't you?
0:18:32 > 0:18:35Well, let's find out who did when it went under the hammer.
0:18:38 > 0:18:42On to Lot 152, it's Portishead.
0:18:42 > 0:18:45Start me, if you will, telephone bid to my right.
0:18:45 > 0:18:47160, that's a bit low, but why not?
0:18:47 > 0:18:48160.
0:18:48 > 0:18:50165? 165?
0:18:50 > 0:18:52170.
0:18:52 > 0:18:53175.
0:18:53 > 0:18:55180.
0:18:55 > 0:18:57185, 190.
0:18:57 > 0:18:59195, yes?
0:18:59 > 0:19:01200.
0:19:01 > 0:19:03200 on the phone. And five?
0:19:03 > 0:19:05205, 210.
0:19:05 > 0:19:08210. 215, sir?
0:19:08 > 0:19:12220. 225.
0:19:12 > 0:19:15230, 235, 240.
0:19:15 > 0:19:18245.
0:19:18 > 0:19:20250.
0:19:20 > 0:19:2255, sir?
0:19:22 > 0:19:25Actually, I saw the lady by the pillar first. 255.
0:19:25 > 0:19:27260, sir.
0:19:27 > 0:19:30Lady's bid at 255. 260 anywhere else?
0:19:30 > 0:19:35First time, second time, third and final time at £255,000...
0:19:37 > 0:19:39Sold at 255,000.
0:19:39 > 0:19:43And the successful bidder getting the lot for £255,000 -
0:19:43 > 0:19:47£55,000 over the guide price - was Alison.
0:19:48 > 0:19:50Alison lives in Portishead.
0:19:50 > 0:19:53I met up with her and her fiance Chris back at the bungalow
0:19:53 > 0:19:57to find out their plans for this estuary observatory.
0:19:57 > 0:19:59Alison, Chris, good to see you both.
0:19:59 > 0:20:03- Good to see you.- Congratulations. - Thank you.- Thank you.
0:20:03 > 0:20:06- What a great bungalow. - It's wonderful, isn't it?
0:20:06 > 0:20:09Yeah, absolutely amazing. Tell me why you wanted to buy it.
0:20:09 > 0:20:12I think, first of all, because it's in the town where we live, so
0:20:12 > 0:20:14that was a good selling point.
0:20:14 > 0:20:16And then, when I looked at the guide price,
0:20:16 > 0:20:19I realised that that was just a little out of kilter from
0:20:19 > 0:20:21my understanding of the market around here,
0:20:21 > 0:20:24so that sort of attracted me to come and look at it and, of course,
0:20:24 > 0:20:26as soon as I walked in and saw the view,
0:20:26 > 0:20:30- it was a wowee moment that says we've got to have it.- The same for me.
0:20:30 > 0:20:33Just extraordinary, isn't it? That view is, in some ways, priceless.
0:20:33 > 0:20:35Absolutely.
0:20:35 > 0:20:37So tell me about you two. What do you do? Is this something you do?
0:20:37 > 0:20:40- Are you both property investors? - Kind of.
0:20:40 > 0:20:45I try to hold down a day job on a Monday to Friday, 9-5 basis,
0:20:45 > 0:20:50and Alison works in procurement of buying stuff, I suppose.
0:20:50 > 0:20:52Yeah, I have a consultancy business.
0:20:52 > 0:20:57I've always been a buyer, so 20-odd years working for other people,
0:20:57 > 0:21:00and I branched out and now I've got a limited company and do it myself.
0:21:00 > 0:21:03Alison is not only a buyer in a professional capacity,
0:21:03 > 0:21:06she has also bought up three other properties over the last
0:21:06 > 0:21:11three years and has kept some as part of a small rental portfolio.
0:21:11 > 0:21:15This is her fourth purchase and, having lived in Portishead,
0:21:15 > 0:21:18she obviously has some handy local knowledge of the property market
0:21:18 > 0:21:22here, but what does she know about the history behind the bungalow?
0:21:22 > 0:21:25We know that the previous occupant had lived here for a good period of
0:21:25 > 0:21:30time, sadly passed away and, hence, why the property went to auction.
0:21:30 > 0:21:32He was apparently, according to neighbours,
0:21:32 > 0:21:34a bit of an amusing person.
0:21:34 > 0:21:35There's a flag pole out there
0:21:35 > 0:21:39and apparently had a big box of flags so, whenever it was someone's
0:21:39 > 0:21:43birthday or a special day, he would put a different flag up.
0:21:43 > 0:21:46- Was he something to do with boats? - Yeah, he was a captain.
0:21:46 > 0:21:48He was a captain of these big tankers that you sometimes
0:21:48 > 0:21:51- see out of the window...- Wow.
0:21:51 > 0:21:53..which is lovely, so he had a huge array of flags
0:21:53 > 0:21:55and he was a man of the sea.
0:21:55 > 0:21:58We did find some sailing paraphernalia around the place
0:21:58 > 0:21:59and it was lovely.
0:21:59 > 0:22:02We both sail so we had a little connection with
0:22:02 > 0:22:05the theory of the house as well.
0:22:05 > 0:22:08Well, the couple may have found a bond with the place,
0:22:08 > 0:22:10but I've got a feeling they won't be holding on to it
0:22:10 > 0:22:12in its current layout for too long.
0:22:12 > 0:22:16Originally, the plan was that we would decorate throughout,
0:22:16 > 0:22:20new bathroom, new kitchen, possibly knock through the kitchen
0:22:20 > 0:22:24into the dining room and make a nice big room there with the views out.
0:22:24 > 0:22:27Although, having picked up the keys and come here
0:22:27 > 0:22:29and spent a bit more time here,
0:22:29 > 0:22:31we've realised there's a huge amount of potential with it
0:22:31 > 0:22:34and maybe it's actually better to leave it for somebody else
0:22:34 > 0:22:37- to come along and buy it as is...- Oh, really?
0:22:37 > 0:22:39..and then decide what they want to do with it,
0:22:39 > 0:22:43so we're at that decision point, really, as to what we do.
0:22:43 > 0:22:45That implies that you think you got a snip at the auction?
0:22:45 > 0:22:48- Yes, I think so.- Potentially.
0:22:48 > 0:22:53So, you paid 255. What do you think it would achieve?
0:22:53 > 0:22:56At the moment, through talking to some of the local estate agents,
0:22:56 > 0:23:01scarily, they're talking it may go up to something like 325,
0:23:01 > 0:23:05which is far higher than I had calculated on all my sums.
0:23:05 > 0:23:07So you could potentially make 70 grand profit,
0:23:07 > 0:23:09in, out, boom, thanks very much?
0:23:09 > 0:23:13Just by managing the money and maybe a wee haircut of the lawn
0:23:13 > 0:23:15and stuff like that.
0:23:15 > 0:23:17That's incredible.
0:23:17 > 0:23:20They can make a £70,000 profit by doing nothing at all
0:23:20 > 0:23:23and the new buyer could still get a decent return
0:23:23 > 0:23:25if they did the renovations.
0:23:25 > 0:23:27A win-win all round.
0:23:27 > 0:23:30# I'd take you just the way you are. #
0:23:32 > 0:23:35It just goes to show what bargains you can sometimes
0:23:35 > 0:23:36get at the auction,
0:23:36 > 0:23:40but if they decide to renovate the bungalow, Alison reckons the works
0:23:40 > 0:23:43will take two to three months, with a budget of £15,000,
0:23:43 > 0:23:46but is it worth it?
0:23:46 > 0:23:48So if you spent 15, 255, that's 270,
0:23:48 > 0:23:51what would you be able to sell it for, having done that work?
0:23:51 > 0:23:54I think, initially, we were looking at about 345, would be
0:23:54 > 0:23:59the target market to, again, just bump that figure up again.
0:23:59 > 0:24:01And how are you going to decide?
0:24:01 > 0:24:04- Toss a coin.- Really?
0:24:04 > 0:24:08We go on holiday on Saturday morning so we've got a couple
0:24:08 > 0:24:12of weeks to see what happens with the marketplace.
0:24:12 > 0:24:14It's getting a little bit warmer.
0:24:14 > 0:24:16We've taken some advice from an estate agent,
0:24:16 > 0:24:20so we come back from holiday and we see if there's any interest.
0:24:20 > 0:24:22Well, listen, good luck.
0:24:22 > 0:24:26Congratulations, and can't wait to hear what you decide to do.
0:24:26 > 0:24:30- Absolutely.- Nice to meet you. - Thank you.- Pleasure.
0:24:32 > 0:24:37So, potentially, a very healthy and quick profit for Alison and Chris
0:24:37 > 0:24:39if they decide to sell.
0:24:39 > 0:24:42See, those bargains are there every now and again
0:24:42 > 0:24:44when you visit the auctions. How will they get on?
0:24:44 > 0:24:48What will they decide to do? You can find out later in the show.
0:24:49 > 0:24:51Still to come, there's some negotiation
0:24:51 > 0:24:53to be done in Streatham Hill.
0:24:53 > 0:24:55Whoever wants to take on this property will have to
0:24:55 > 0:24:59negotiate with the current landlord on the price of that lease.
0:25:01 > 0:25:05And in Portishead, Alison and Chris have come to a decision.
0:25:05 > 0:25:09I think, we'll always wonder whether we did the right thing.
0:25:14 > 0:25:18But first it's time to go back to Ilkeston in Derbyshire, where,
0:25:18 > 0:25:22earlier, we saw this three-bedroom semi being snapped up at auction by
0:25:22 > 0:25:26best buddies and seasoned property developers, Paul and Richard.
0:25:33 > 0:25:35The guys paid £71,000
0:25:35 > 0:25:39and were looking at a long list of tasks to turn this place around,
0:25:39 > 0:25:42including the tricky prospect of moving the bathroom upstairs,
0:25:42 > 0:25:46whilst retaining all three bedrooms.
0:25:46 > 0:25:49Obviously, the large bedroom, that will be split,
0:25:49 > 0:25:52so we'll be able to still keep the largest section of that room as
0:25:52 > 0:25:54a bedroom, so we'll still have three bedrooms,
0:25:54 > 0:25:58- and we'll get that bathroom upstairs. - It'll be a smaller bathroom.
0:25:58 > 0:26:01When the boys are not working on building projects,
0:26:01 > 0:26:05they're playing golf together, but only on a Monday.
0:26:05 > 0:26:09It's cheaper on a Monday and it's not so busy, so, yes, that's why.
0:26:11 > 0:26:14Moving their weekend about to save a few quid - well,
0:26:14 > 0:26:19I wonder if they've been as careful with their £15,000 budget?
0:26:19 > 0:26:22Five months have passed since our last visit.
0:26:22 > 0:26:25It's time to reveal all.
0:26:36 > 0:26:40The house is unrecognisable from what we saw before.
0:26:40 > 0:26:42Paul and Richard have stripped back to the brick,
0:26:42 > 0:26:47installed a damp-proof membrane, replastered, rewired and replumbed.
0:26:47 > 0:26:50To save money, they've kept all the old windows,
0:26:50 > 0:26:53except they moved them about a bit.
0:26:57 > 0:27:00The dining room window originally was here in the living room,
0:27:00 > 0:27:04so we moved the living room window, which is now the dining room window.
0:27:04 > 0:27:06That window was the bathroom,
0:27:06 > 0:27:10so that's moved upstairs into the new bathroom that we've created,
0:27:10 > 0:27:14which meant we only needed to do one thing and that was make the aperture
0:27:14 > 0:27:17bigger for the French doors, where the living room window was,
0:27:17 > 0:27:20so that's how we did the whole process.
0:27:23 > 0:27:27After that game of musical windows, there was another puzzle to solve.
0:27:27 > 0:27:30How did they get on with moving the bathroom upstairs?
0:27:32 > 0:27:36Basically, this used to be the old doorway into the bedroom
0:27:36 > 0:27:42and we've taken that out, created another doorway.
0:27:42 > 0:27:46Took the chimney breast out and put the partitioning up and,
0:27:46 > 0:27:49as you can see, it's created a good-sized bedroom, still,
0:27:49 > 0:27:52and a very, very nice bathroom.
0:27:55 > 0:27:59So they successfully juggled the space upstairs to add
0:27:59 > 0:28:02the family bathroom and retain that third bedroom.
0:28:02 > 0:28:05Mission accomplished.
0:28:05 > 0:28:08Downstairs, the extra space gained by moving the bathroom has
0:28:08 > 0:28:11given the kitchen a more open-plan feel.
0:28:11 > 0:28:16And an added bonus is the retention of the small downstairs loo.
0:28:18 > 0:28:21The toilet was separate to the downstairs bathroom,
0:28:21 > 0:28:25so that gave us the opportunity to leave a toilet downstairs and,
0:28:25 > 0:28:29although we had one or two arguments over it, it did stay downstairs...
0:28:29 > 0:28:33- Got your way again.- ..and it worked out pretty good, I think.
0:28:38 > 0:28:41Not content with refurbishing the inside of the property,
0:28:41 > 0:28:44the boys have gone to town in the back garden.
0:28:47 > 0:28:51What we did is we put a very simple patio, which is
0:28:51 > 0:28:54leading into the kitchen and then where the French doors are,
0:28:54 > 0:28:58we thought it would be nice to put a decked area and, of course,
0:28:58 > 0:29:01once we got rid of the two sheds, it's opened it all up
0:29:01 > 0:29:04and we've finished with a nice big garden.
0:29:06 > 0:29:09The price for all this work?
0:29:09 > 0:29:13Well, they only had to find another £2,500 to top up
0:29:13 > 0:29:16their original £15,000 budget,
0:29:16 > 0:29:19which brings their total spend to £88,500.
0:29:24 > 0:29:26To me, it looks like they've done a fantastic job,
0:29:26 > 0:29:30but has this been a wise investment?
0:29:30 > 0:29:34Let's call in two local estate agents to find out what they think.
0:29:35 > 0:29:38First impressions of the property are fantastic.
0:29:38 > 0:29:39Very, very smart looking.
0:29:39 > 0:29:42They've done a wonderful job to neaten it up outside,
0:29:42 > 0:29:43which is followed through internally.
0:29:43 > 0:29:47It's a smart house. This has been really lovingly done.
0:29:47 > 0:29:48The finish is excellent.
0:29:48 > 0:29:51The garden's finished. It's ready to go.
0:29:51 > 0:29:54I think the thing that is going to sell this property
0:29:54 > 0:29:58and set it aside from any other is the sheer quality of the workmanship.
0:29:58 > 0:30:03It's just the same to fit a kitchen, whether it's done badly or poorly,
0:30:03 > 0:30:04but this one's been done well.
0:30:04 > 0:30:07So that's really going to help it to sell.
0:30:07 > 0:30:10There is one thing that I think may put people off
0:30:10 > 0:30:13and that is the size of the bedrooms.
0:30:13 > 0:30:15There's two smaller bedrooms and one large double.
0:30:15 > 0:30:18So it could potentially put some people off,
0:30:18 > 0:30:21but a young family won't have a problem in this house.
0:30:23 > 0:30:26Paul and Richard have been careful to research the local market
0:30:26 > 0:30:28before embarking on this project
0:30:28 > 0:30:31and know that a well-finished property could achieve
0:30:31 > 0:30:34upwards of £120,000.
0:30:34 > 0:30:37Do the estate agents' valuations match up to this?
0:30:41 > 0:30:44I would market this property at £115,000.
0:30:44 > 0:30:48And I would rent the property for up to £550 per calendar month.
0:30:48 > 0:30:51I think if we were to put this property on the market for sale,
0:30:51 > 0:30:55we'd be looking at achieving offers in the region of £120,000.
0:30:55 > 0:30:57To put it up for rent,
0:30:57 > 0:31:03a typical property of this size would rent for £550 per calendar month.
0:31:03 > 0:31:08A sale at £120,000 would net the boys a healthy profit
0:31:08 > 0:31:14of £31,500 before the usual deductions of taxes and fees.
0:31:15 > 0:31:18- Yes, that's what... - We were expecting.
0:31:18 > 0:31:23That's the average price for houses in this particular area.
0:31:23 > 0:31:26We've always found it's been our experience that
0:31:26 > 0:31:30a well-renovated property will be able to exceed that a little bit.
0:31:30 > 0:31:34- But that's OK.- We're happy. - We're quite happy with that, aren't we?- Yeah.
0:31:34 > 0:31:37And that high-end finish has proved the guys right,
0:31:37 > 0:31:42as after filming, they sold the house for £128,000,
0:31:42 > 0:31:46giving them a profit of nearly 40,000 before taxes and expenses.
0:31:46 > 0:31:48So, all worth it, then?
0:31:49 > 0:31:52It's been a great project, we've really enjoyed it.
0:31:52 > 0:31:55We've got to say thank you to Sandra, our next-door neighbour,
0:31:55 > 0:31:58for all the cake and the hot sausage rolls.
0:31:58 > 0:32:00- And cups of tea, yeah.- That's right.
0:32:06 > 0:32:09We head over now to Streatham Hill in south London.
0:32:11 > 0:32:13A popular area with fantastic public transport links
0:32:13 > 0:32:16via bus or train to central London.
0:32:19 > 0:32:21Plus, it's home to Streatham Common.
0:32:22 > 0:32:24# Park life... #
0:32:26 > 0:32:28The property I'm here to see is
0:32:28 > 0:32:30just under a mile walk from Brixton and Clapham.
0:32:30 > 0:32:36It's a three-bed second-floor flat with a guide price of £170,000 plus.
0:32:39 > 0:32:43Yes, we've seen blocks of flats like this before in London,
0:32:43 > 0:32:46but I'm struck by how well maintained this one is
0:32:46 > 0:32:51with plenty of expansive grounds and everything looking pristine clean.
0:32:51 > 0:32:53It's up just two flights of stairs,
0:32:53 > 0:32:56and so far I'm not seeing anything I don't like.
0:32:57 > 0:32:59Let's head in.
0:33:02 > 0:33:04OK, it's nice and bright.
0:33:04 > 0:33:08It's a small hallway, but a lot of light coming in here.
0:33:10 > 0:33:14OK, we've got a shower room and toilet with a small sink.
0:33:15 > 0:33:19In here we have a small bedroom.
0:33:19 > 0:33:21Two further rooms in there,
0:33:21 > 0:33:24but I'd like to investigate that a bit further.
0:33:24 > 0:33:27There might be something you could do with that from what I can see.
0:33:27 > 0:33:31In here, the kitchen just needs a bit of a spruce-up.
0:33:31 > 0:33:33Nice cupboard space, though.
0:33:33 > 0:33:36Through to here, which I imagine would have been the lounge.
0:33:36 > 0:33:38You'd get a sofa in here, a couple of chairs.
0:33:38 > 0:33:41But maybe they tried to use it as a bedroom
0:33:41 > 0:33:44because this is a freestanding wardrobe of some size.
0:33:44 > 0:33:46But this is the main thing for me.
0:33:46 > 0:33:48This big, massive feature window
0:33:48 > 0:33:52which looks onto a communal piece of grass. I like it.
0:33:54 > 0:33:57Yes, we're off to a flyer with this one.
0:33:57 > 0:34:01But it pays to remember, properties such as this can be liable to
0:34:01 > 0:34:04all manner of shared costs.
0:34:04 > 0:34:08You certainly don't want any hidden bills after buying a property.
0:34:09 > 0:34:12Whilst it's a nice-looking flat so far, with a great location,
0:34:12 > 0:34:15I can't help but feel it's not fulfilling its potential.
0:34:17 > 0:34:20Let's investigate these two rooms just a little bit further.
0:34:20 > 0:34:22Firstly, this is a waste of space.
0:34:22 > 0:34:27You've got a small bedroom here and a small bedroom just here.
0:34:27 > 0:34:31Now, this partition wall would have been put in
0:34:31 > 0:34:35because somebody would have wanted to get maximum rental income.
0:34:35 > 0:34:38Not needed. Get rid of it.
0:34:38 > 0:34:41Have this as your lounge, put your sofa in here, your two chairs,
0:34:41 > 0:34:45maybe even a dining table as well if you could squeeze it in.
0:34:45 > 0:34:49But it's definitely a lounge because I can see the TV points over there.
0:34:49 > 0:34:52You'd have a nice big lounge area, you've got a bedroom next door,
0:34:52 > 0:34:55which would be your master bedroom with a freestanding wardrobe.
0:34:55 > 0:34:59There you have a smaller guest bedroom, perfect flat.
0:35:01 > 0:35:02Have a rethink about the layout,
0:35:02 > 0:35:04tidy up the kitchen and bathroom
0:35:04 > 0:35:07and you could have a highly appealing property.
0:35:08 > 0:35:11However, there is a fly in the ointment.
0:35:13 > 0:35:16The present landlord has been served with a section 42
0:35:16 > 0:35:19to extend the lease on this property.
0:35:19 > 0:35:22Now, whoever wants to take on this property will have to
0:35:22 > 0:35:25negotiate with the current landlord on the price of that lease.
0:35:25 > 0:35:28And negotiations are never as straightforward as you think.
0:35:28 > 0:35:32# Oh, boy, you lose your head
0:35:32 > 0:35:34# Oh-ho, boy... #
0:35:34 > 0:35:38Another reason to do your research before buying.
0:35:38 > 0:35:42Landlords could ask for huge sums of money to extend the lease here.
0:35:44 > 0:35:48We've asked along a local property expert for his opinion on that
0:35:48 > 0:35:49and the flat itself,
0:35:49 > 0:35:52which is guided at £170,000.
0:35:52 > 0:35:56Well, a section 42 has been served on the freeholder,
0:35:56 > 0:36:00which means that any buyer coming and buying this property has a benefit,
0:36:00 > 0:36:03knowing that they can ask for a lease extension.
0:36:03 > 0:36:05What has to be considered is the cost of that.
0:36:05 > 0:36:08So it could range from anywhere between £5,000 and £100,000.
0:36:08 > 0:36:12That cost would need to be negotiated with the freeholder.
0:36:12 > 0:36:15Assuming that the negotiations were all plain sailing,
0:36:15 > 0:36:17what does he think about the property itself?
0:36:17 > 0:36:20At the moment, the property is laid out as a three-bedroom.
0:36:20 > 0:36:22I don't think it suits a three-bed.
0:36:22 > 0:36:26I'd actually remove the dividing wall between the two bedrooms behind me
0:36:26 > 0:36:30and that would make a really nice, large bedroom to the rear
0:36:30 > 0:36:33and one to the side as well, which would be a great size.
0:36:33 > 0:36:35So, whichever layout you choose,
0:36:35 > 0:36:38you will have two good-sized rooms to the front of the flat.
0:36:38 > 0:36:41What kind of a valuation would he put on this property
0:36:41 > 0:36:45if it was renovated and made into a two-bed?
0:36:45 > 0:36:47Once renovated, preferably as a two-bedroom,
0:36:47 > 0:36:50this property would achieve approximately
0:36:50 > 0:36:53between £290,000 and £300,000.
0:36:53 > 0:36:54And if it was rented?
0:36:54 > 0:36:58Renting this property as a two-bedroom flat would achieve
0:36:58 > 0:37:01around the £1,250 mark per calendar month.
0:37:01 > 0:37:04This is a great little flat.
0:37:04 > 0:37:06There is the issue of that lease,
0:37:06 > 0:37:08but if it goes anywhere near the guide price,
0:37:08 > 0:37:10you could get a good return on your investment.
0:37:10 > 0:37:15Let's see who fancied taking the chance when it went to auction.
0:37:17 > 0:37:20Nice purpose-built lot.
0:37:20 > 0:37:23Who'd like to start off on this? 150 anywhere?
0:37:23 > 0:37:26Start low, 150, 155.
0:37:28 > 0:37:30155 anywhere?
0:37:30 > 0:37:32155 standing up.
0:37:32 > 0:37:34160. 165.
0:37:34 > 0:37:38170. 175.
0:37:38 > 0:37:40180.
0:37:42 > 0:37:46After a slow start, the bids pick up and we rejoin after £196,000.
0:37:47 > 0:37:50196 straight at the back.
0:37:50 > 0:37:54197. 197 sitting down.
0:37:54 > 0:37:57198 anywhere else?
0:37:57 > 0:37:58It's a good buy, this.
0:37:58 > 0:38:01197 sitting down.
0:38:01 > 0:38:03First time.
0:38:03 > 0:38:05Second time.
0:38:05 > 0:38:09198. 199. 200?
0:38:09 > 0:38:13If not, 199 sitting down. First time.
0:38:13 > 0:38:15Second time.
0:38:15 > 0:38:17Third and last time, if you're all done. Two?
0:38:19 > 0:38:20Sold, 199.
0:38:23 > 0:38:25Hidden from view was Emily,
0:38:25 > 0:38:28who along with sisters Katie and Ellie,
0:38:28 > 0:38:32successfully bought this property for £199,000.
0:38:32 > 0:38:36# Sisters are doing it for themselves... #
0:38:39 > 0:38:40If they look familiar,
0:38:40 > 0:38:44it's because they appeared in the show back in July 2014.
0:38:46 > 0:38:49That was their first project together, this is their second.
0:38:49 > 0:38:52So let's see exactly what their plans are this time.
0:38:52 > 0:38:55- Ladies, nice to meet you and congratulations.- Thank you.
0:38:55 > 0:38:58- Emily.- Thank you.- Katie.- Yeah.- And Ellie. I got it right first time.
0:39:00 > 0:39:03- Firstly, tell us about the auction experience.- Very scary.
0:39:03 > 0:39:05What was scary about it?
0:39:05 > 0:39:07A couple of times at first I wasn't sure...
0:39:07 > 0:39:11A few other properties, I wasn't sure if he was looking at me or not.
0:39:11 > 0:39:13So I kept on looking around like, that wasn't for me
0:39:13 > 0:39:15because I haven't bid. Checking, like,
0:39:15 > 0:39:18"Oh, no, I don't want that one!"
0:39:18 > 0:39:21But, yeah, once it was actually our one,
0:39:21 > 0:39:25the lot before actually got skipped.
0:39:25 > 0:39:29So all of a sudden it was me and I was like, "Oh, I'm not prepared!"
0:39:29 > 0:39:33But, yeah, I just kept bidding and I felt quite confident actually.
0:39:33 > 0:39:35You went for it. Has she come up trumps for you?
0:39:35 > 0:39:38Yeah, I think it's a really, really good bid.
0:39:38 > 0:39:40This was our first choice in the auction.
0:39:40 > 0:39:41Tell me the dynamics
0:39:41 > 0:39:46because three young ladies going into property, it's quite unusual.
0:39:46 > 0:39:49It's always... I mean, I've always,
0:39:49 > 0:39:52always been kind of fascinated with the property market.
0:39:52 > 0:39:55I was an estate agent for a couple of years
0:39:55 > 0:39:59around this area, sort of Streatham, Clapham, Balham,
0:39:59 > 0:40:02so when we got a bit of inheritance
0:40:02 > 0:40:05we thought that was probably the best place to put it.
0:40:05 > 0:40:07- You've got one property already. - Yeah.
0:40:07 > 0:40:10And obviously that works for you. Is that the three of you as well?
0:40:10 > 0:40:12That's the three of us, we're renting it out at the moment,
0:40:12 > 0:40:15so we're hoping to make a bit on it but we want to rent it out
0:40:15 > 0:40:17for a couple of years first and we've got a really good tenant.
0:40:17 > 0:40:20And tell me about this property. What's your intentions?
0:40:20 > 0:40:23You've got it, it's yours, what are you going to do with it?
0:40:23 > 0:40:25We need to do the lease.
0:40:25 > 0:40:28The section 42 was served on this place before we got it,
0:40:28 > 0:40:30so we saw all that in the legal pack
0:40:30 > 0:40:33and it looked like a reasonable price.
0:40:33 > 0:40:37It's kind of similar to what we've just secured on our other property,
0:40:37 > 0:40:39which is just down the road.
0:40:39 > 0:40:41And we're just in negotiations at the moment.
0:40:41 > 0:40:44We only completed last week, so we're in negotiations
0:40:44 > 0:40:47with the freeholder, who wants a crazy sum of money.
0:40:47 > 0:40:50Will that be all three of you sat in the room? Overpower him?
0:40:50 > 0:40:53We have a company that we are bringing in.
0:40:53 > 0:40:54A local company that know
0:40:54 > 0:40:57what things are worth and know what it should be.
0:40:57 > 0:41:00They've already come in and are just drawing up their evaluation.
0:41:00 > 0:41:03They did the last one for us, didn't they?
0:41:03 > 0:41:05We had to negotiate the last one down as well.
0:41:05 > 0:41:07So it's something you've done before.
0:41:07 > 0:41:10- It doesn't frighten you, by the looks of it.- No.- No.
0:41:10 > 0:41:14Yes, and no wonder they're not frightened -
0:41:14 > 0:41:17the sisters have already built up a lot of useful knowledge
0:41:17 > 0:41:20and experience to help them negotiate the property game.
0:41:22 > 0:41:25So, with an eye on renting this property eventually,
0:41:25 > 0:41:27what are their plans for this project?
0:41:28 > 0:41:31We are going to change the bathroom and kitchen,
0:41:31 > 0:41:35make it more nicer and modern, put a tiny bath in the bathroom.
0:41:35 > 0:41:37Find one that fits!
0:41:37 > 0:41:41Knock down the two bedrooms next door, make it all one.
0:41:41 > 0:41:43So it will be a two-bed flat rather than a three.
0:41:43 > 0:41:46But decent-sized bedrooms.
0:41:46 > 0:41:48Take off the wallpaper.
0:41:48 > 0:41:51- Paint it nice, beautiful colours. - New floor.
0:41:51 > 0:41:55Nice wood floor rather than this horrible laminate.
0:41:55 > 0:41:58What budget have you given yourselves to do the bathroom,
0:41:58 > 0:42:00put a bath in, and...?
0:42:00 > 0:42:04We're thinking...we're hoping to land under the 40 mark
0:42:04 > 0:42:08for both the lease and everything that needs doing.
0:42:08 > 0:42:12We think probably no more than £30,000, £40,000
0:42:12 > 0:42:14to do all the renovations.
0:42:14 > 0:42:18And hopefully we'll land in the early to mid 20s for the lease.
0:42:18 > 0:42:23How long from this to your dream flat?
0:42:23 > 0:42:26- Six to eight weeks.- Yeah, that's what we're thinking.- Wow, quick!
0:42:26 > 0:42:31We had the builder in already, looked around and told him all our plans.
0:42:31 > 0:42:33He's pretty much ready to go.
0:42:33 > 0:42:35We gave him a lot of notice because we had four weeks
0:42:35 > 0:42:37from when we won it to when we completed,
0:42:37 > 0:42:40so they cleared their schedules and they are ready to come in
0:42:40 > 0:42:43and just start doing everything straightaway.
0:42:43 > 0:42:44They're super efficient, aren't they?
0:42:44 > 0:42:47So hopefully we can stick within that timescale.
0:42:47 > 0:42:50Ladies, congratulations, I hope it works out how you want it to.
0:42:50 > 0:42:51- Thank you.- Good look, Ellie.
0:42:51 > 0:42:53- Thank you.- Katie, good luck.
0:42:53 > 0:42:55- And Emily, good luck.- Thank you.
0:42:55 > 0:42:58So, three sisters clearly with their heads screwed on
0:42:58 > 0:43:00investing in the property market.
0:43:00 > 0:43:04Now, if they can get that lease and all the renovations done
0:43:04 > 0:43:06within their budget, I think they're onto a winner.
0:43:06 > 0:43:09You can find out how they get on later on in the programme.
0:43:12 > 0:43:15Well, we've seen how one of our properties ended up.
0:43:15 > 0:43:17How about the other two?
0:43:17 > 0:43:19Have there been lots of changes or are they exactly the same?
0:43:19 > 0:43:21Well, let's find out.
0:43:21 > 0:43:25It's now back to north Somerset and the town of Portishead,
0:43:25 > 0:43:27where earlier we saw this bungalow
0:43:27 > 0:43:30that looked pleasant enough from the outside.
0:43:30 > 0:43:33A decent, spacious living room, two good-sized bedrooms
0:43:33 > 0:43:38and a kitchen and bathroom that were dated, but by no means unworkable.
0:43:38 > 0:43:43But what really sells this place is the view to end all views.
0:43:43 > 0:43:46A stunning expanse of the Bristol Channel.
0:43:46 > 0:43:52And buying it for £255,000 were Alison and her fiance Chris.
0:43:52 > 0:43:56Despite that fantastic vista out back, they planned to sell the place on
0:43:56 > 0:44:00after spending £15,000 and two to three months renovating the place.
0:44:00 > 0:44:03But then they discovered they might not need to do
0:44:03 > 0:44:05any work at all to make a decent profit.
0:44:05 > 0:44:09At the moment, through talking to some of the local estate agents,
0:44:09 > 0:44:13scarily they're talking it may go up to something like 325,
0:44:13 > 0:44:17which is far higher than I had calculated on all my sums.
0:44:17 > 0:44:20So you could make potentially 70 grand profit -
0:44:20 > 0:44:22in, out, boom, thanks very much.
0:44:22 > 0:44:26Just by managing the money, maybe a wee haircut of the lawn
0:44:26 > 0:44:28and stuff like that.
0:44:28 > 0:44:30Chris and Alison were very tempted,
0:44:30 > 0:44:33but with a holiday imminent on the Caribbean island of St Lucia,
0:44:33 > 0:44:37the couple were taking time to ponder their next move.
0:44:37 > 0:44:42We're back only four weeks later, and do we have a different bungalow?
0:44:43 > 0:44:46No, of course not. Everything is as it was.
0:44:46 > 0:44:48And that should be enough to tell you
0:44:48 > 0:44:50what Alison and Chris's decision was.
0:44:51 > 0:44:53We were umming and ahing as to
0:44:53 > 0:44:57whether we would do the work or just put it on the market
0:44:57 > 0:45:01and it was a bit of a head and heart conversation with ourselves because
0:45:01 > 0:45:05for me, my heart was in doing the work, that's what I'd intended to do.
0:45:05 > 0:45:08But our heads were telling us that financially
0:45:08 > 0:45:12we weren't necessarily going to make a huge amount of different profit
0:45:12 > 0:45:15if we'd done the work because of the timescale it would take.
0:45:15 > 0:45:17So really we decided that let's put it on the market
0:45:17 > 0:45:21while we're not in a position to do any work and see what happens.
0:45:21 > 0:45:23And, not being a couple to waste time,
0:45:23 > 0:45:27Alison and Chris got to work straight after our first visit.
0:45:27 > 0:45:30The following day it was put on the internet
0:45:30 > 0:45:35and the marketing proper started. And within three hours we had an offer
0:45:35 > 0:45:37that frightened us a little bit
0:45:37 > 0:45:40because we hadn't even got on our plane
0:45:40 > 0:45:42to go and have a think about it while we were away on holiday.
0:45:42 > 0:45:44So we mulled it over
0:45:44 > 0:45:49and accepted the offer on the Monday from our holiday destination.
0:45:49 > 0:45:52Which was more than we could have expected.
0:45:52 > 0:45:54We were quite taken aback by it.
0:45:54 > 0:45:59And the offer was bang on their asking price of £325,000.
0:45:59 > 0:46:02What great news for Alison and Chris!
0:46:02 > 0:46:05And while getting an offer so quickly might have given
0:46:05 > 0:46:08the couple second thoughts that they'd undervalued the property,
0:46:08 > 0:46:11the offer came from a cash buyer who wasn't in a chain,
0:46:11 > 0:46:15meaning it could be a fast turnaround in the exchange process.
0:46:15 > 0:46:19So, good news all round and all without lifting a finger
0:46:19 > 0:46:22on refurbishing the bungalow. Well, not quite.
0:46:22 > 0:46:25The only thing I can say we've actually done was
0:46:25 > 0:46:29we borrowed our doormat from home rather than buying a new one
0:46:29 > 0:46:32because we weren't going to need it at our house.
0:46:32 > 0:46:35So that was just to make sure that when people came to view it,
0:46:35 > 0:46:38kept it as clean as it was before we left.
0:46:38 > 0:46:41In fact, some of the carpets did need a light clean,
0:46:41 > 0:46:45but it was a far cry from the £15,000 renovation costs
0:46:45 > 0:46:48that Alison and Chris had originally contemplated.
0:46:48 > 0:46:52But that's not to say this has been a cost-free exercise.
0:46:52 > 0:46:56Apart from the cost at auction of £255,000,
0:46:56 > 0:47:00there were other costs, including the buyer's fee, solicitors' fees,
0:47:00 > 0:47:03stamp duty and the bridging loan cost.
0:47:03 > 0:47:07In total, those all arrived at around about £11,000.
0:47:07 > 0:47:10And then five for the sale.
0:47:10 > 0:47:13That would take their total outlay up to £271,000.
0:47:13 > 0:47:17But when you consider that from buying the bungalow at auction
0:47:17 > 0:47:20to exchanging contracts on the new sale took only ten weeks,
0:47:20 > 0:47:23Alison and Chris have really cleaned up,
0:47:23 > 0:47:26with an incredible profit of £54,000.
0:47:26 > 0:47:29But are they still thinking - what if they did the work?
0:47:29 > 0:47:33I think we'll always wonder whether we did the right thing
0:47:33 > 0:47:36in selling it quickly and moving on, but I will be sad
0:47:36 > 0:47:41to hand over the keys, I think it's a brilliant property.
0:47:41 > 0:47:44But, having sold the place for £325,000,
0:47:44 > 0:47:47it's time to find out from two local estate agents
0:47:47 > 0:47:50their thoughts on this bungalow, starting with the agent
0:47:50 > 0:47:52who not only first saw the property,
0:47:52 > 0:47:54but also sold it for Alison and Chris.
0:47:54 > 0:47:57Could they, with more time and money,
0:47:57 > 0:47:59have got a better deal on the bungalow?
0:47:59 > 0:48:01I think they've made the right decision.
0:48:01 > 0:48:03It gives them the opportunity to move on,
0:48:03 > 0:48:06take the profit they want and get on to the next project.
0:48:06 > 0:48:11I like the property - exactly what I expected in this part of Portishead.
0:48:11 > 0:48:14The design is very popular amongst the cul-de-sacs here.
0:48:14 > 0:48:17And with the Channel view, it's absolutely tremendous.
0:48:17 > 0:48:21But having sold the bungalow for £325,000, do the agents reckon
0:48:21 > 0:48:25Alison and Chris could have got more out of the property?
0:48:25 > 0:48:28This particular property, we decided,
0:48:28 > 0:48:30because it was in an unusual situation,
0:48:30 > 0:48:34to market it at a guide price of £325,000.
0:48:34 > 0:48:39I believe the value today is in the region of £320,000-£330,000.
0:48:39 > 0:48:43Well, I guess exactly where I thought they would say it would be.
0:48:43 > 0:48:49And the good thing is that our offer that we received was for 325,
0:48:49 > 0:48:52on the nose, and that's what we've accepted.
0:48:52 > 0:48:55But how much more would a renovated property have sold for?
0:48:55 > 0:48:58I believe, once work is completed,
0:48:58 > 0:49:02the property value should be in the region of £370,000-£380,000.
0:49:02 > 0:49:04You'd get somewhere in the region of
0:49:04 > 0:49:08£360,000 to £375,000 once it's finished.
0:49:08 > 0:49:11I think we're still happy with our decision
0:49:11 > 0:49:14because obviously the speed with which we are then able to
0:49:14 > 0:49:18recycle the money back out and then invest in another property.
0:49:18 > 0:49:20So, no regrets from Alison.
0:49:20 > 0:49:22But the agents reckon a rental return of between
0:49:22 > 0:49:26£950 and £1,100 per calendar month could have given the couple
0:49:26 > 0:49:29an annual yield of between 4-5%.
0:49:29 > 0:49:31Appealing, Alison?
0:49:31 > 0:49:34It was one of the things we looked at just in case everything went wrong
0:49:34 > 0:49:36and we weren't able to find a buyer.
0:49:36 > 0:49:40And I must admit my figures were based on £1,100 a month,
0:49:40 > 0:49:43so I'm pleased that I was spot-on with that one.
0:49:43 > 0:49:47This is all academic as the house is sold and awaiting its new owner,
0:49:47 > 0:49:51who soon will be enjoying the fantastic views from the bungalow.
0:49:51 > 0:49:53But, for Alison and Chris,
0:49:53 > 0:49:55the quick, pain-free sale of this property
0:49:55 > 0:49:57doesn't just mean an incredible profit,
0:49:57 > 0:50:02it will hopefully also open up the door to a brand-new future.
0:50:02 > 0:50:05The way this is going to affect our lives in the next 12 months,
0:50:05 > 0:50:09at least, is it means that we can afford for me
0:50:09 > 0:50:12not to have to go to work every day in the conventional manner
0:50:12 > 0:50:16and I can spend that time looking for new investment properties.
0:50:16 > 0:50:19So it has the potential of significantly changing
0:50:19 > 0:50:22the way our lives are, going forward.
0:50:29 > 0:50:33Back to Streatham in south London, where I looked around a three-bed
0:50:33 > 0:50:37second-floor flat that had a guide price of £170,000 plus.
0:50:38 > 0:50:42It was in a good location and in pretty good condition, but for me,
0:50:42 > 0:50:46the layout was all wrong and there was only one solution.
0:50:48 > 0:50:52Got a small bedroom here and a small bedroom just here.
0:50:52 > 0:50:55Now, this partition wall would have been put in
0:50:55 > 0:50:59because somebody would have wanted to get maximum rental income.
0:50:59 > 0:51:02Not needed. Get rid of it.
0:51:02 > 0:51:06Have this as your lounge, so you'd have a nice, big lounge area,
0:51:06 > 0:51:09a bedroom next door, which would be your master bedroom,
0:51:09 > 0:51:10perfect flat.
0:51:11 > 0:51:15Another potential problem was that the lease was up for renewal,
0:51:15 > 0:51:18meaning any buyer would need to negotiate
0:51:18 > 0:51:22with the existing freeholder a price for extending that lease.
0:51:22 > 0:51:27However, despite that, the property proved very popular on auction day
0:51:27 > 0:51:32and was bought for £199,000 by sisters Katie, Emily and Ellie.
0:51:34 > 0:51:37Despite this only being their second renovation project together,
0:51:37 > 0:51:40they seemed to know their stuff.
0:51:40 > 0:51:43We are going to change the bathroom and kitchen
0:51:43 > 0:51:45and make it much more nicer and modern.
0:51:45 > 0:51:49Put a tiny bath in the bathroom. Find one that fits!
0:51:49 > 0:51:53Knock down the two bedrooms next door and make it one
0:51:53 > 0:51:55so it will be a two-bed flat rather than a three.
0:51:55 > 0:51:57But decent-sized bedrooms.
0:51:57 > 0:52:00So, armed with a budget of £13,000-£14,000,
0:52:00 > 0:52:03and a timescale of six to eight weeks,
0:52:03 > 0:52:07not to mention a trusted family friend recruited to do the work,
0:52:07 > 0:52:09the three sisters were feeling confident.
0:52:12 > 0:52:13Three months later,
0:52:13 > 0:52:17we've returned to Streatham to see if that confidence was well placed.
0:52:30 > 0:52:33What was once two pokey, impractical bedrooms
0:52:33 > 0:52:35is now a spacious and attractive living room.
0:52:35 > 0:52:37As Katie explains further.
0:52:40 > 0:52:42So, in this...
0:52:42 > 0:52:45This, now the lounge, used to be two separate, very small bedrooms,
0:52:45 > 0:52:48which we found out later was only added
0:52:48 > 0:52:50as a temporary wall and was a real bodge job
0:52:50 > 0:52:54so they could sell it at the highest price at auction as a three-bed.
0:52:54 > 0:52:56So our builders had to take the wall down
0:52:56 > 0:53:01and then obviously we've made it into the large lounge area.
0:53:01 > 0:53:03It's certainly far more appealing
0:53:03 > 0:53:07and the good work continues into the rest of the flat.
0:53:30 > 0:53:33Ah, they've managed to get that bath in here.
0:53:33 > 0:53:36Not essential, but it's a real bonus in a flat this size.
0:53:40 > 0:53:44The bedrooms are a work in progress, with carpets still to go down.
0:53:48 > 0:53:51Overall, though, the flat has a far better layout
0:53:51 > 0:53:53and now feels spacious and comfortable.
0:53:56 > 0:53:59So, with Emily working and Ellie away travelling,
0:53:59 > 0:54:02it's up to Katie to tell us how it's all gone.
0:54:02 > 0:54:05First of all we had to look at all the piping and wiring
0:54:05 > 0:54:07because it was a bit of a bodge job.
0:54:07 > 0:54:10So we had to have everything completely replumbed,
0:54:10 > 0:54:12new radiators and everything.
0:54:12 > 0:54:16Once that was down, it really was just very neutral decor,
0:54:16 > 0:54:18nothing major needed to be done.
0:54:18 > 0:54:20We've done all the bedrooms in white
0:54:20 > 0:54:23just because it's nice and neutral for tenants when they move in.
0:54:23 > 0:54:24Kitchen as well, white
0:54:24 > 0:54:29and then the bathroom just very white tiles with grey grouting.
0:54:29 > 0:54:32Then the lounge, we wanted to add a bit more character to make it
0:54:32 > 0:54:35more homely, so we've painted it grey and had a lovely feature wall.
0:54:35 > 0:54:38And we've added an old reclaimed fireplace as well.
0:54:39 > 0:54:42I really think the girls have made some good decisions here
0:54:42 > 0:54:45and got the most out of the property.
0:54:45 > 0:54:48But how was working together for just the second time?
0:54:48 > 0:54:50We all got very involved.
0:54:50 > 0:54:53We did the same thing as our first property we did together.
0:54:53 > 0:54:54So we just have a WhatsApp group
0:54:54 > 0:54:57and whoever looks at bathrooms, kitchens, tiles,
0:54:57 > 0:54:59we just put our options on there
0:54:59 > 0:55:02and then keep it nice and democratic and vote on what's what.
0:55:02 > 0:55:04Usually we tend to agree,
0:55:04 > 0:55:07but there's been a couple of disagreements.
0:55:07 > 0:55:09But we got there in the end.
0:55:09 > 0:55:11The girls, through a democratic process,
0:55:11 > 0:55:14have spent around £13,000 on the property.
0:55:14 > 0:55:18And due to the work in the living room taking longer than expected,
0:55:18 > 0:55:21it's taken them around ten weeks to get to this point.
0:55:21 > 0:55:24But what about extending that pesky lease?
0:55:26 > 0:55:30We're negotiating at the moment backwards and forwards
0:55:30 > 0:55:31with the freeholders.
0:55:31 > 0:55:36We think we're almost at a point where we'll agree on a figure.
0:55:36 > 0:55:39But it will probably take another couple of weeks, if not months,
0:55:39 > 0:55:42if we have to go to tribunal, which we're hoping isn't the case.
0:55:42 > 0:55:45But obviously we do want to get a fair price.
0:55:45 > 0:55:47Quite right too.
0:55:47 > 0:55:49But until they've got that lease,
0:55:49 > 0:55:51they will be renting and not selling.
0:55:53 > 0:55:56With a total investment so far of around £212,000,
0:55:56 > 0:56:00let's hear the opinions of two local estate agents,
0:56:00 > 0:56:03starting with the agent who saw it originally.
0:56:04 > 0:56:05The layout is excellent.
0:56:05 > 0:56:08Before, the layout didn't work very well, didn't flow very nicely,
0:56:08 > 0:56:10but now it works really well and you've got a lovely lounge
0:56:10 > 0:56:12and two decent-sized bedrooms.
0:56:12 > 0:56:16The standard of finish of the property is very nicely done.
0:56:16 > 0:56:18It's above the average for the area,
0:56:18 > 0:56:21it's something which no buyers or tenants would walk in and say,
0:56:21 > 0:56:23"I'd like this to be fixed or changed."
0:56:23 > 0:56:26I'd say it's done very nicely, it's very much ready to move into.
0:56:27 > 0:56:28All very positive.
0:56:28 > 0:56:32So, with the girls eager to sell in the future, what kind of valuation
0:56:32 > 0:56:36could they expect once they've negotiated that lease extension?
0:56:36 > 0:56:38With a long lease, this flat would resell
0:56:38 > 0:56:41approximately for £300,000-£310,000.
0:56:41 > 0:56:45I'd say this property would achieve £350,000 on the sale market.
0:56:45 > 0:56:50I don't agree with the bottom one. I was thinking 335 to 340.
0:56:50 > 0:56:54You know, I think that's more the correct figure.
0:56:54 > 0:56:58So, if the girls sold for £340,000,
0:56:58 > 0:57:01that would mean a pre-tax profit of £128,000.
0:57:01 > 0:57:03But don't forget,
0:57:03 > 0:57:06they're still negotiating extending that lease.
0:57:06 > 0:57:08So that will affect their profit.
0:57:08 > 0:57:11Until they do manage that, they'll be renting.
0:57:11 > 0:57:14The rental market in this area has picked up a little, so I think
0:57:14 > 0:57:19this flat will rent currently on the market at £1,350 per calendar month.
0:57:19 > 0:57:20On the rental market,
0:57:20 > 0:57:23this property is a step above most of the competition.
0:57:23 > 0:57:25So, as a result of that,
0:57:25 > 0:57:29I'd say we could confidently achieve £1,450 per calendar month.
0:57:29 > 0:57:35It's exactly what I thought as well. I was saying 1,350 to 1,400.
0:57:35 > 0:57:38So pretty much what we expected and it gives us a good yield,
0:57:38 > 0:57:40so I'm pleased with that.
0:57:40 > 0:57:43If the girls did achieve £1,400 per calendar month,
0:57:43 > 0:57:46that would mean a yield of just under 8%,
0:57:46 > 0:57:50which, along with the valuations, must put a smile on their faces.
0:57:52 > 0:57:53Absolutely.
0:57:53 > 0:57:57We did very well on it, so I think, once we've extended the lease,
0:57:57 > 0:58:00we'll still have a very sizeable profit.
0:58:00 > 0:58:03So, yeah, another good investment, we're really pleased.
0:58:05 > 0:58:08Well, what do you think? Would you have been tempted
0:58:08 > 0:58:10to buy any of those properties on today's auctions?
0:58:10 > 0:58:12I might well have, Lucy.
0:58:12 > 0:58:14Well, there's plenty more where they came from
0:58:14 > 0:58:16here on Homes Under The Hammer.