0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:05If you're looking at investing in property,
0:00:05 > 0:00:07then making sure you know what's happening
0:00:07 > 0:00:10in the local property market is a great way to start.
0:00:10 > 0:00:12And also doing detailed research
0:00:12 > 0:00:14really helps you stay ahead of the game.
0:00:14 > 0:00:15And once you've done that,
0:00:15 > 0:00:17why not head down to your local property auction
0:00:17 > 0:00:18to see what's on offer?
0:00:44 > 0:00:47Well, buying property under the hammer
0:00:47 > 0:00:50can be a great way to get good value for money.
0:00:50 > 0:00:52Yeah, and it can be a gamble as well
0:00:52 > 0:00:54cos most of the lots on offer will need renovation work.
0:00:54 > 0:00:58So, let's see who wanted to get stuck in on today's programme.
0:01:00 > 0:01:04In Worthing, the sea isn't the only place to get your feet wet.
0:01:04 > 0:01:06When we came to see it,
0:01:06 > 0:01:08you had to walk through a puddle in that top landing.
0:01:09 > 0:01:13But if you fancy dipping your toes into the property world,
0:01:13 > 0:01:15this two-bed flat could be right up your street.
0:01:15 > 0:01:18This is the perfect investment property.
0:01:19 > 0:01:21It may be straightforward in Telford,
0:01:21 > 0:01:23but it's perplexing in South Wales.
0:01:23 > 0:01:29You've got this sliding door between this bedroom and this bedroom.
0:01:30 > 0:01:32All these properties have been sold at auction.
0:01:32 > 0:01:35We'll find out who bought them and what they paid for them
0:01:35 > 0:01:37when they went under the hammer.
0:01:37 > 0:01:39- GAVEL BANGS - Your lot, sir. Well done.
0:01:44 > 0:01:47The West Sussex town of Worthing
0:01:47 > 0:01:49sits ten miles to the west of Brighton,
0:01:49 > 0:01:53and it's perhaps a bit more sedate than its near neighbour.
0:01:53 > 0:01:56Oscar Wilde penned The Importance Of Being Earnest
0:01:56 > 0:02:00while staying here in the summer of 1894,
0:02:00 > 0:02:03and even named the main character, Jack Worthing,
0:02:03 > 0:02:04in honour of the town.
0:02:06 > 0:02:10For many centuries, Worthing was just a small fishing hamlet,
0:02:10 > 0:02:12but in the late 18th century,
0:02:12 > 0:02:15it developed into an elegant seaside resort
0:02:15 > 0:02:18for those that wanted to indulge in a bit of sea bathing
0:02:18 > 0:02:20and to promenade along the seafront.
0:02:20 > 0:02:23It's a bit chilly today for a dip in the ocean.
0:02:23 > 0:02:26I think I'll go and look at some property instead.
0:02:28 > 0:02:32The property I'm here to see is this two-storey terraced house,
0:02:32 > 0:02:34which sits a few hundred yards from the seafront.
0:02:34 > 0:02:40It went to auction with a guide price of 220,000 to 250,000.
0:02:45 > 0:02:48Now, this is a great house with wonderful proportions.
0:02:48 > 0:02:53You've got lovely ceiling height, a fantastic, welcoming hallway.
0:02:53 > 0:02:54I really like it.
0:02:54 > 0:02:57Surprisingly, this house has been set up as an HMO -
0:02:57 > 0:02:59a House of Multiple Occupancy -
0:02:59 > 0:03:02so these two wonderful reception rooms here
0:03:02 > 0:03:04were probably bedrooms.
0:03:04 > 0:03:05But, of course, you could switch it back
0:03:05 > 0:03:08and have this as an amazing family house.
0:03:08 > 0:03:10I mean, there's so much character within. I love it.
0:03:10 > 0:03:15Right at the back here, we've got the kitchen/dining area.
0:03:15 > 0:03:17This was probably the living room
0:03:17 > 0:03:20for the people that lived here before as an HMO.
0:03:20 > 0:03:22The good news is, though, right at the back,
0:03:22 > 0:03:25you've got a downstairs shower room and a loo.
0:03:25 > 0:03:30- # They call me mellow yellow - # Quite rightly
0:03:30 > 0:03:34# So mellow He's so mellow... #
0:03:35 > 0:03:38Not everyone is mellow with yellow, but that's easily fixed.
0:03:38 > 0:03:41And look at these unexpected gems -
0:03:41 > 0:03:43units that are in decent condition...
0:03:44 > 0:03:48..a nice Belfast sink, light-reflective worktops.
0:03:48 > 0:03:50Now, a lick of paint and a tidy up,
0:03:50 > 0:03:55well, this kitchen could go from mellow yellow to solid gold.
0:03:55 > 0:03:58- # Gold! - Gold!- #
0:03:58 > 0:04:00Beyond the kitchen lies the shower room,
0:04:00 > 0:04:04which is always handy, either for an HMO or a family home.
0:04:04 > 0:04:08But the back garden has definitely been tailored to suit the former.
0:04:10 > 0:04:13Well, I think you'll agree this is disappointing.
0:04:13 > 0:04:16It's, um...it's small, it's like a yard.
0:04:16 > 0:04:19If you did want to turn it back from an HMO into a family home,
0:04:19 > 0:04:22I see this as a definite disadvantage,
0:04:22 > 0:04:25although you do have the beach just a few hundred yards away
0:04:25 > 0:04:27as your playground.
0:04:27 > 0:04:31And, boy, on a sunny day, it really is a beautiful beach.
0:04:31 > 0:04:32Just as well.
0:04:34 > 0:04:37Clearly, this has been a low-maintenance solution
0:04:37 > 0:04:40for a rental property. And talking of maintenance,
0:04:40 > 0:04:44there's certainly a lot to do out here.
0:04:44 > 0:04:46It's a cheerier prospect upstairs
0:04:46 > 0:04:49where we find four bedrooms and a family bathroom.
0:04:49 > 0:04:52Now, the master bedroom is particularly impressive.
0:04:52 > 0:04:56I think the estate agents might call this generous accommodation,
0:04:56 > 0:04:59but unfortunately, it looks like the roof might not
0:04:59 > 0:05:01be keeping all the rain out,
0:05:01 > 0:05:04and patches of mould suggest that damp could be an issue.
0:05:06 > 0:05:10Making the house watertight should be the new buyer's top priority
0:05:10 > 0:05:12before starting the refurbishment.
0:05:12 > 0:05:17But refurbished as what? An HMO or a spacious family home?
0:05:18 > 0:05:20Let's call in a local property expert
0:05:20 > 0:05:23to hear the pros and the cons of each option.
0:05:25 > 0:05:29It has plenty of potential either as an HMO or as a family home.
0:05:29 > 0:05:32As a family home, the property needs renovating throughout.
0:05:32 > 0:05:35I'd incorporate potentially an en-suite bathroom
0:05:35 > 0:05:36into the main bedroom
0:05:36 > 0:05:38and remove some of the outbuildings outside
0:05:38 > 0:05:40to create a greater garden space.
0:05:40 > 0:05:44As an HMO, the refurbishment would be to a more basic standard.
0:05:44 > 0:05:45A number of houses in the road
0:05:45 > 0:05:48have been turned from HMOs into family houses.
0:05:48 > 0:05:51However, an HMO would be a better investment.
0:05:52 > 0:05:54So, if the new buyer was to keep this
0:05:54 > 0:05:57as a six-roomed house of multiple occupancy,
0:05:57 > 0:06:00how much rental could they expect to earn?
0:06:00 > 0:06:04As an HMO, each room could be let for £375 per calendar month,
0:06:04 > 0:06:08which would equate to £2,250 per calendar month in total.
0:06:08 > 0:06:13And how does that figure compare to renting as a single family dwelling?
0:06:13 > 0:06:15As a four-bed family home,
0:06:15 > 0:06:18the property could achieve around £1,250 per calendar month.
0:06:20 > 0:06:21There's quite a difference,
0:06:21 > 0:06:24and from an investment point of view,
0:06:24 > 0:06:27keeping this house as an HMO makes obvious business sense.
0:06:27 > 0:06:29How do the resale figures compare?
0:06:29 > 0:06:32As a family home finished to a high standard throughout,
0:06:32 > 0:06:35the property could achieve approximately £325,000.
0:06:35 > 0:06:37If the property was to be sold as an HMO,
0:06:37 > 0:06:40it could achieve between £320,000 and £350,000.
0:06:42 > 0:06:46So, will this house stay as an HMO - House of Multiple Occupancy -
0:06:46 > 0:06:48or will it become a family home?
0:06:48 > 0:06:52That decision is down to whoever bought it on auction day,
0:06:52 > 0:06:54so let's find out who bid for it.
0:06:56 > 0:06:59So, we move to Worthing now. It's lot 167.
0:06:59 > 0:07:02It's a very old mid-terrace. Lots of accommodation.
0:07:02 > 0:07:05Start me at 180,000.
0:07:06 > 0:07:09180,000. I've started too low. There's two of you. 180, I have.
0:07:09 > 0:07:12185. 85? Make it 90.
0:07:14 > 0:07:16- 90. 95.- Even though the auctioneer
0:07:16 > 0:07:19started the bidding well below the guide price,
0:07:19 > 0:07:22the bidding climbs slowly but steadily
0:07:22 > 0:07:24in increments of five grand.
0:07:24 > 0:07:25205 anywhere else?
0:07:26 > 0:07:30Your bid. 205. 210, either of you?
0:07:30 > 0:07:33210. 215. 220.
0:07:33 > 0:07:35I'll come back to you. 220. 225.
0:07:37 > 0:07:38230.
0:07:39 > 0:07:43The gentleman's bid sitting down on my right.
0:07:43 > 0:07:45225,000. It's against two of you now.
0:07:45 > 0:07:47230 anywhere else?
0:07:49 > 0:07:50Are you sure? OK.
0:07:50 > 0:07:54First time at 225. Second time at 225.
0:07:54 > 0:07:57For a third and final time at 225,000
0:07:57 > 0:07:59back of the room sitting down. Are we all done?
0:07:59 > 0:08:03- GAVEL BANGS - Sold at 225,000.
0:08:03 > 0:08:06Bidding from the back of the room were Gaynor and Brian,
0:08:06 > 0:08:09a married couple from nearby Hove.
0:08:09 > 0:08:14# We dream the same dream We want the same thing
0:08:14 > 0:08:16# Oh-oh! #
0:08:16 > 0:08:18I caught up with them back at the house
0:08:18 > 0:08:22to hear if they're both dreaming the same dream for this property.
0:08:24 > 0:08:27- Gaynor and Brian, congratulations. I love this house.- Thank you.
0:08:27 > 0:08:29- What a great location.- Yeah. - Yeah, it's really good.
0:08:29 > 0:08:32So, how well do you guys know Worthing?
0:08:32 > 0:08:35Well, we renovated our house two years ago,
0:08:35 > 0:08:39- and while that was going on, we bought a house in Worthing...- Ah.
0:08:39 > 0:08:41..and lived there for six months and we loved it.
0:08:41 > 0:08:44Why have you bought this at auction? What's the story, Gaynor?
0:08:44 > 0:08:46Well, having lived here for six months,
0:08:46 > 0:08:50we knew that it was a great market and it's close to the sea,
0:08:50 > 0:08:53it's got lots going on, and we just fancied doing another project.
0:08:53 > 0:08:55Is this what you guys do -
0:08:55 > 0:08:58kind of buy house, do it up, sell it on, find another house?
0:08:58 > 0:09:01We'd like to. This is just the second one we've done,
0:09:01 > 0:09:03so we'll see how this one goes
0:09:03 > 0:09:05cos there's quite a lot of work here, as you can see.
0:09:05 > 0:09:06What are you going to do?
0:09:06 > 0:09:09Where are you going to start with this project?
0:09:09 > 0:09:12- In the roof.- The roof.- Ah! - GAYNOR LAUGHS
0:09:12 > 0:09:15Right, who wants to tell me what happened to the roof?
0:09:15 > 0:09:17- OK, there's two leaks in the roof.- Ah.
0:09:17 > 0:09:20And they look like they've been there for a long time,
0:09:20 > 0:09:23and one of the rafters has rotted and needs replacing.
0:09:23 > 0:09:25You always have to wonder why a property went to auction
0:09:25 > 0:09:28- in the first place, so that is probably the reason why.- Could be.
0:09:28 > 0:09:31When we came to see it, you had to walk through a puddle
0:09:31 > 0:09:34- in that top landing...- Oh, yeah. - ..so we knew there was a problem.
0:09:34 > 0:09:37The big question I need to ask you is, it was currently laid out
0:09:37 > 0:09:39as an HMO - a House of Multiple Occupancy -
0:09:39 > 0:09:41what are you going to do with it?
0:09:41 > 0:09:44Will you keep it that way or change it back into a family house?
0:09:44 > 0:09:46We're going to turn it into a family house.
0:09:46 > 0:09:48I think, you know, that's what it really lends itself to.
0:09:48 > 0:09:51- Absolutely.- It cries out for that.
0:09:51 > 0:09:53- I think it'll be fabulous when we've done it.- Yeah.- Yeah.
0:09:56 > 0:09:58Oh, I'm so pleased that Gaynor and Brian are planning
0:09:58 > 0:10:01to make this a family home once again.
0:10:01 > 0:10:03They've successfully renovated another house,
0:10:03 > 0:10:06but what skills are they bringing to this project?
0:10:08 > 0:10:11I was in IT - I was an IT contractor -
0:10:11 > 0:10:13but when we renovated our house,
0:10:13 > 0:10:16I trained to be an electrician as well.
0:10:16 > 0:10:18I'm Part P qualified
0:10:18 > 0:10:20and so that really helps on this sort of thing.
0:10:20 > 0:10:23- Big tick. Great news. - Yeah, yeah.- So, then what?
0:10:23 > 0:10:25So, the roof, the electrics and then...?
0:10:25 > 0:10:28We need to renovate the kitchen. We need to do something with that.
0:10:28 > 0:10:31I'm hoping that we can get away with using the units that we've got
0:10:31 > 0:10:33and paint them up.
0:10:33 > 0:10:34That's what I like doing -
0:10:34 > 0:10:38making something out of something that's already there. Recycling.
0:10:38 > 0:10:40I've always bought sort of interesting properties
0:10:40 > 0:10:44and worked on them and made them better or more different.
0:10:44 > 0:10:46I've done kitchens like this and painted them
0:10:46 > 0:10:49and covered them in wrapping paper and varnished them.
0:10:49 > 0:10:53You know, just weird and slightly unusual stuff.
0:10:53 > 0:10:55Hang on a minute. Wrapping them up in wrapping paper?
0:10:55 > 0:10:57No, I got wrapping paper,
0:10:57 > 0:11:00cut it out to cover the little, you know, indents
0:11:00 > 0:11:04- and varnished over it, and it looked great.- Wow.
0:11:04 > 0:11:07And then distressed the rest of the unit.
0:11:07 > 0:11:10Are we going to be seeing anything like that here? Who knows?
0:11:10 > 0:11:13- Oh, really? Watch this space. - Watch this space, yeah.
0:11:13 > 0:11:15I think I'll just be painting these, but who knows?
0:11:15 > 0:11:18- You've got to think about who you're going to be selling it to.- Exactly.
0:11:18 > 0:11:21That was a project a long time ago and I had to live with it.
0:11:21 > 0:11:23LUCY LAUGHS So, yeah.
0:11:23 > 0:11:26So, how long do you guys intend on working on this as a project?
0:11:26 > 0:11:28I mean, how long is it going to take you?
0:11:28 > 0:11:30- Good question.- Good question. - I don't know.
0:11:30 > 0:11:33- It depends how much we want to do, doesn't it, really?- Yeah.
0:11:33 > 0:11:36- I'd say, you know... - Six months max, I think.
0:11:36 > 0:11:39Our last project, which was a house much bigger than this, actually,
0:11:39 > 0:11:42- and that took ten months, didn't it?- Yeah.
0:11:42 > 0:11:45And, yeah, then we'll remarket it and sell it on.
0:11:45 > 0:11:49But before they can sell, they have to do all the hard work.
0:11:49 > 0:11:51Brian is planning to do as much as he can,
0:11:51 > 0:11:54and Gaynor will bring in specialist contractors where needed.
0:11:54 > 0:11:57But how much do they think this will all cost?
0:11:58 > 0:12:02We've put a budget down of between 30,000 and 50,000,
0:12:02 > 0:12:05so it just depends whether there's nasties in there or not.
0:12:05 > 0:12:0720 grand contingency.
0:12:07 > 0:12:10- Is that just in case the roof plays up?- Yeah, yeah.
0:12:10 > 0:12:14And it depends also on what we need to do to get it to market, really.
0:12:14 > 0:12:18How much we need to spend. Do we need to put in new radiators?
0:12:18 > 0:12:21Do we need to take any of these floors up and replace them?
0:12:21 > 0:12:24- We'll see as we're doing it, I think.- It's all about the budget.
0:12:24 > 0:12:26- All about the budget. - All about the budget.
0:12:26 > 0:12:29- It'll be interesting to see how much you do end up spending.- It will.
0:12:29 > 0:12:32- THEY CHUCKLE - Are you worried about the roof?
0:12:32 > 0:12:36- Not really...not... I'm not... - You are a little bit. You are.
0:12:36 > 0:12:38- Look at his face.- It's worse than I thought it was going to be.
0:12:38 > 0:12:40He worries about everything,
0:12:40 > 0:12:41so if he wasn't worried, he'd be lying.
0:12:41 > 0:12:44- So, as a combo, as a property developing couple...- Yeah.
0:12:44 > 0:12:48..are you the worrier and you're the doer and the practical person?
0:12:48 > 0:12:51- Yeah.- No, I'm the practical person. Gaynor finds the property.
0:12:51 > 0:12:54She does all the research. She's brilliant at that, so...
0:12:54 > 0:12:58- And then you just get on and do it and worry about it?- That's it.
0:12:58 > 0:13:00- I do all the worrying. - He's the doer, I'm the manager.
0:13:00 > 0:13:02- Really?- But, you know, what's new there?
0:13:02 > 0:13:05- And it works, though, doesn't it? - It does work, yeah.
0:13:05 > 0:13:06- Does it?- Yes.
0:13:06 > 0:13:09- He's going to kill you after this. - SHE LAUGHS
0:13:09 > 0:13:11Guys, I'm so excited to see the outcome
0:13:11 > 0:13:14- and to see how it turns out for you. Congratulations.- Thanks very much.
0:13:14 > 0:13:16- Lovely to meet you. Thank you. - Thank you.- Good luck.
0:13:18 > 0:13:22So, no more HMO, no more multiple tenants.
0:13:22 > 0:13:26Gaynor and Brian are going to make this into a lovely family home,
0:13:26 > 0:13:29but they've got the roof to fix and lots of other work to do,
0:13:29 > 0:13:31including that kitchen to paint,
0:13:31 > 0:13:34or maybe covering it in wrapping paper. Really?
0:13:34 > 0:13:37We'll find out how they get on later on in the programme.
0:13:41 > 0:13:44Telford in Shropshire is about 30 miles from Birmingham,
0:13:44 > 0:13:46and it's a town that's going places.
0:13:46 > 0:13:49Last year, a major redevelopment programme was completed,
0:13:49 > 0:13:52bringing in new cinemas and shops to the town centre,
0:13:52 > 0:13:54and the town is attracting new technology companies
0:13:54 > 0:13:55to the area too.
0:13:55 > 0:13:59# Because you're gorgeous
0:13:59 > 0:14:03# I'd do anything for you... #
0:14:03 > 0:14:05I hope the property I'm going to see
0:14:05 > 0:14:08is as gorgeous as this award-winning building.
0:14:08 > 0:14:11The property I'm here to see is just a short walk away
0:14:11 > 0:14:15from Telford town centre. And there it is just there.
0:14:15 > 0:14:18It's a ground-floor flat, two bedrooms,
0:14:18 > 0:14:21and has a guide price of £55,000 plus.
0:14:21 > 0:14:23Let's get in and take a look.
0:14:26 > 0:14:30These 1980s flats were owned by the local authority.
0:14:30 > 0:14:34They sit in well-maintained gardens, are quiet yet extremely central -
0:14:34 > 0:14:38perfect for young professionals who want to walk or cycle to work.
0:14:40 > 0:14:45OK, we're into a decent hallway space,
0:14:45 > 0:14:47and a bit of deja vu.
0:14:47 > 0:14:50I've actually been in a property like this recently
0:14:50 > 0:14:52that had a void there.
0:14:52 > 0:14:55What have we got in here? We've got cupboard space in there,
0:14:55 > 0:14:58and even more cupboard space in there.
0:14:58 > 0:15:00Quite a big cupboard, that one.
0:15:00 > 0:15:04I always want to try and create as much space as you possibly can.
0:15:04 > 0:15:08I'm hoping this is the bedroom.
0:15:08 > 0:15:10So, why couldn't you...? Let me just investigate.
0:15:12 > 0:15:16And, yes, it's pretty much identical to the flat I was in before,
0:15:16 > 0:15:20and all I wanted to do is just shift this wall and bring it here,
0:15:20 > 0:15:23get a bit more bedroom space, but I was not allowed to do it,
0:15:23 > 0:15:25as it stated in the legal pack
0:15:25 > 0:15:28that you could not change the configuration of this flat.
0:15:29 > 0:15:33# Happening all over again
0:15:33 > 0:15:38# Happening all over again... #
0:15:38 > 0:15:41The upside of not being allowed to change the layout
0:15:41 > 0:15:43is that you won't be spending your money
0:15:43 > 0:15:45knocking down and rebuilding walls.
0:15:45 > 0:15:46This is not a huge flat,
0:15:46 > 0:15:49but it's well-designed and has good storage,
0:15:49 > 0:15:53which is handy because both bedrooms are on the small to medium side,
0:15:53 > 0:15:54and because the lease restrictions
0:15:54 > 0:15:56might not allow you to make them any bigger.
0:15:58 > 0:16:00The sitting room, however, is very spacious,
0:16:00 > 0:16:02and once that Union Jack colour scheme has gone,
0:16:02 > 0:16:05it will be a bright room, considering it's a ground floor.
0:16:06 > 0:16:08I can't see this being
0:16:08 > 0:16:10a particularly expensive flat to renovate,
0:16:10 > 0:16:14but it depends on how much you want to splash out on doing the bathroom.
0:16:14 > 0:16:16You need a whole new suite in here.
0:16:18 > 0:16:21All seems pretty cosmetic at the moment from what I can see,
0:16:21 > 0:16:23and there's no change in here.
0:16:23 > 0:16:27All just looks a little bit tired. Could do with a lick of paint.
0:16:27 > 0:16:29Could do with some carpet, some new flooring in here,
0:16:29 > 0:16:33and a brand-new kitchen as well, but nothing major.
0:16:33 > 0:16:36But the plus points are the location. It's perfect.
0:16:36 > 0:16:39The town is just a short walk away in that direction,
0:16:39 > 0:16:42so if you haven't got a car, it's not a problem.
0:16:42 > 0:16:45There's loads of new businesses moving into the town centre.
0:16:45 > 0:16:48That's bringing in young professionals.
0:16:48 > 0:16:52So, for me, this is the perfect investment property.
0:16:52 > 0:16:56# This is a perfect world
0:16:56 > 0:17:01# I'm riding on an incline
0:17:01 > 0:17:05# I'm staring in your face
0:17:05 > 0:17:11# You'll photograph mine... #
0:17:11 > 0:17:14It's time to find out if our local property expert could find
0:17:14 > 0:17:18any flaws in this potential little gem, guided at £55,000.
0:17:20 > 0:17:22First impressions are that it's a good size.
0:17:22 > 0:17:23It's ground floor as well.
0:17:23 > 0:17:25Some people might view that as a negative,
0:17:25 > 0:17:27but I always view it as a positive cos maybe,
0:17:27 > 0:17:30if you've got an elderly person who wants to live here,
0:17:30 > 0:17:32it's absolutely perfect for them.
0:17:32 > 0:17:35It maybe needs a little TLC, it's a bit rough around the edges,
0:17:35 > 0:17:37but I don't think it's anything scary at all.
0:17:37 > 0:17:40To anyone knowing what's involved in these places,
0:17:40 > 0:17:42is quite easy stuff to do, to be honest.
0:17:43 > 0:17:46Well, this is sounding better and better,
0:17:46 > 0:17:49with either young professionals or older people as potential residents.
0:17:49 > 0:17:52What does he think the local property market will make of it
0:17:52 > 0:17:54once it's been refurbished?
0:17:54 > 0:17:58Once renovated, the property should sell for about £70,000.
0:17:58 > 0:18:01Rental potential - £525 per calendar month.
0:18:02 > 0:18:05This is an ex-local authority flat.
0:18:05 > 0:18:08Now, if you're a regular viewer to the show, you know we like those,
0:18:08 > 0:18:11but this one in particular needs a lot of work doing to it.
0:18:11 > 0:18:14Now, I would want to spend a few quid on this,
0:18:14 > 0:18:15get it looking spick and span,
0:18:15 > 0:18:18but who was the last person standing when it went under the hammer?
0:18:20 > 0:18:23Lot 46. Ground floor apartment.
0:18:23 > 0:18:2650,000? Thanks, sir. £50,000.
0:18:26 > 0:18:2952. 52. 54?
0:18:29 > 0:18:3254. 56. 58?
0:18:34 > 0:18:3758. I'll take one if it helps.
0:18:37 > 0:18:38In the middle, 59.
0:18:38 > 0:18:4160. 61.
0:18:41 > 0:18:4362. 63 anywhere else?
0:18:43 > 0:18:46If not, £62,000 once.
0:18:46 > 0:18:48£62,000 twice.
0:18:48 > 0:18:52Third and final time at £62,000.
0:18:52 > 0:18:54- GAVEL BANGS - Your lot, sir. Well done.
0:18:54 > 0:18:58The successful bidder of £62,000 was made by Kumar.
0:18:59 > 0:19:02Kumar has brought along his children Krish and Anoushka
0:19:02 > 0:19:06to see his latest purchase, but they're going to amuse themselves
0:19:06 > 0:19:08while I catch up with him and his builder Amrit.
0:19:10 > 0:19:11- Amrit, nice to meet you. - Same to you.
0:19:11 > 0:19:14- Kumar, same to you, sir. Congratulations.- Thank you.
0:19:14 > 0:19:16Why this flat in particular?
0:19:16 > 0:19:20Well, Telford has recently gone through a lot of regeneration,
0:19:20 > 0:19:24- millions of pounds have been pumped into the town centre area.- Yeah.
0:19:24 > 0:19:25This has created quite a few jobs.
0:19:25 > 0:19:28The demand for rental properties is quite high.
0:19:28 > 0:19:31So, it's nearly 100, 150 metres from the town centre.
0:19:31 > 0:19:35Just walk to work, and you're there at your workplace, really.
0:19:35 > 0:19:37That's the reason why I bought this.
0:19:37 > 0:19:41What was it that got you into property in the first place?
0:19:41 > 0:19:46Well, I started buying properties about ten years ago,
0:19:46 > 0:19:51and the yield in this area was unbelievable.
0:19:51 > 0:19:53But that went really well.
0:19:53 > 0:19:56Then the next one and the one after that
0:19:56 > 0:19:58and the one after that and it's just...
0:19:58 > 0:20:00Every time, I think, "It's the last property,"
0:20:00 > 0:20:02but it never ends. It just carries on and on.
0:20:02 > 0:20:04It's been ten years I've been doing that.
0:20:04 > 0:20:07You find yourself back at the auction house all the time?
0:20:07 > 0:20:10Yeah, this is the third property at auction.
0:20:10 > 0:20:13The first one I bought is, like, last year.
0:20:13 > 0:20:14Nearly 12 months ago.
0:20:14 > 0:20:19But before, I always used to buy through estate agents,
0:20:19 > 0:20:22but I thought, "I'll get my hands dirty in auction houses
0:20:22 > 0:20:23"at least for one."
0:20:23 > 0:20:28# Get your hands dirty for me... #
0:20:28 > 0:20:30So, Kumar is cleaning up at auction now.
0:20:31 > 0:20:34# Get your hands dirty... #
0:20:34 > 0:20:36I was keen to find out what renovations he had planned
0:20:36 > 0:20:38for this latest addition to his empire.
0:20:40 > 0:20:43- So, what work needs to be done here? - The bathroom needs to go.
0:20:43 > 0:20:45So, new units in the bathroom.
0:20:45 > 0:20:47- Boiler - Amrit said the boiler's all right.- OK.
0:20:47 > 0:20:50After servicing and the Landlords Gas Safety Check,
0:20:50 > 0:20:52it should be absolutely fine.
0:20:52 > 0:20:56The property - all the walls need new paint.
0:20:56 > 0:20:58There are some gaps and stuff. We won't do plastering.
0:20:58 > 0:21:02We'll fill the holes and stuff and do a brand-new fresh paint.
0:21:02 > 0:21:05- So, you're not re-plastering? - No, not re-plastering.- OK. OK.
0:21:05 > 0:21:06It just keeps the cost down.
0:21:06 > 0:21:09The walls are absolutely fine after the filling.
0:21:09 > 0:21:12- The new paint needs to go. New flooring.- Mm-hm.
0:21:12 > 0:21:15So, some of the rooms will have carpeting,
0:21:15 > 0:21:17some of the rooms will have flooring.
0:21:17 > 0:21:20So, the bathroom and kitchen will have wooden flooring or linoleum.
0:21:20 > 0:21:23Depends what the flooring chap says.
0:21:23 > 0:21:26- Kitchen units will stay.- OK.
0:21:26 > 0:21:30We might put new handles on the doors of the kitchen
0:21:30 > 0:21:31and new worktops.
0:21:31 > 0:21:33- Are you going to be doing all the work, Amrit?- Most of it.
0:21:33 > 0:21:37- Yeah?- Yeah.- How long will it take you to turn a flat like this round?
0:21:37 > 0:21:39What, two to three weeks.
0:21:39 > 0:21:43- Really? On your own? - I've got some help.
0:21:43 > 0:21:46- Oh, I see. You've got some help. - Yeah.- What about the boss?
0:21:46 > 0:21:48- Is he going to help you? - He might help me, yeah.
0:21:48 > 0:21:51- HE LAUGHS - After I've finished my day job,
0:21:51 > 0:21:52yes, definitely.
0:21:52 > 0:21:55So, how did your relationship come about, Amrit?
0:21:55 > 0:22:00I started doing some jobs for him. After that, we became good friends.
0:22:00 > 0:22:03- And he won't let you go?- No. - HE LAUGHS
0:22:03 > 0:22:05Do you know what? Yeah, that's how it started.
0:22:05 > 0:22:07And Amrit is a nice guy, so, you know,
0:22:07 > 0:22:10- it's good to have nice guys as your friends, isn't it?- It is.
0:22:10 > 0:22:12And if they can do a bit of work for you,
0:22:12 > 0:22:14then you can trust them to do the work, leave them to do it,
0:22:14 > 0:22:17- which is what you were looking for, obviously.- Exactly.
0:22:17 > 0:22:19# Hello, buddy
0:22:19 > 0:22:22I didn't think you'd turn a blind
0:22:22 > 0:22:25# Eye... #
0:22:25 > 0:22:28So, Kumar's builder is his best buddy too.
0:22:28 > 0:22:31That sounds like a partnership made in heaven.
0:22:31 > 0:22:34Since Amrit is also a qualified gas fitter and electrician,
0:22:34 > 0:22:36it helps to keep the budget in line too.
0:22:37 > 0:22:40We've budgeted 3,000 for it.
0:22:40 > 0:22:43Most likely, we'll come under the budget,
0:22:43 > 0:22:46but I've put £500, £600 extra just in case it will...
0:22:46 > 0:22:47Always the case, you know,
0:22:47 > 0:22:50the money's tight towards the end of the project.
0:22:50 > 0:22:53So, Amrit, what's going to be the hardest job, the biggest challenge?
0:22:53 > 0:22:55There's nothing hard if you want to do this.
0:22:55 > 0:22:59- DION LAUGHS - I think it's just the bathroom.
0:22:59 > 0:23:01- All the rest is easy. - See, that's what you need.
0:23:01 > 0:23:04When you've got a builder who says, "It's all easy," it's perfect.
0:23:04 > 0:23:05That's what he said when I bought it.
0:23:05 > 0:23:07"Everything's easy. Go for it."
0:23:07 > 0:23:09# Hello, buddy... #
0:23:09 > 0:23:11Is Amrit dream builder or what?
0:23:11 > 0:23:14I'm almost feeling a bromance coming on.
0:23:14 > 0:23:16Kumar is an admin man,
0:23:16 > 0:23:19but has he followed the Homes Under The Hammer rules?
0:23:19 > 0:23:22- Did you read the legal pack?- No, I didn't read the legal pack...- Ah!
0:23:22 > 0:23:25..and I didn't view the property.
0:23:25 > 0:23:27Two! Two of our rules.
0:23:27 > 0:23:29I thought, "It's a leasehold apartment.
0:23:29 > 0:23:31"There shouldn't be any structural problem."
0:23:31 > 0:23:35- Based on my previous experience with other auction properties...- OK.
0:23:35 > 0:23:38..they always do brand-new, fresh leases of 99 years,
0:23:38 > 0:23:41so I was hoping that it was actually going to do the same thing.
0:23:41 > 0:23:45So, you never read the legal pack before, but have you read it now?
0:23:45 > 0:23:46The solicitor has,
0:23:46 > 0:23:50- and there were a few areas which he made me aware about.- OK.
0:23:50 > 0:23:53Especially the cost and charges in the next five years,
0:23:53 > 0:23:55which will be spent on the block,
0:23:55 > 0:23:58- which is roughly about £4,000 to £5,000.- OK.
0:23:58 > 0:24:01It wasn't a big surprise. It was a surprise, but it wasn't big
0:24:01 > 0:24:03because other properties have very similar expenses,
0:24:03 > 0:24:05which I have in other blocks.
0:24:05 > 0:24:08Yes, it would have helped if I read the legal pack before.
0:24:08 > 0:24:11- Listen, Amrit, I wish you all the best with the work.- Thank you.
0:24:11 > 0:24:14- Hope it goes well. Kumar, good luck with your investment.- Thank you.
0:24:14 > 0:24:16- Good luck, guys. Wish you all the best.- Much appreciated.
0:24:16 > 0:24:18I do like that partnership
0:24:18 > 0:24:20because they both bring something different to the table.
0:24:20 > 0:24:22Amrit's got to do all the work,
0:24:22 > 0:24:25and Kumar's going to help when he can.
0:24:25 > 0:24:27But they didn't read the legal pack,
0:24:27 > 0:24:30and they may end up spending just that little bit more money
0:24:30 > 0:24:33than they wanted to. So, read the legal pack.
0:24:33 > 0:24:36Anyway, you can find out how they get on later in the programme.
0:24:38 > 0:24:40Still to come, the buyer of this three-bed semi
0:24:40 > 0:24:43is a builder by day, but also has an interesting sideline.
0:24:43 > 0:24:44I do a bit of farming.
0:24:44 > 0:24:47I do it before I go to work and I do it when I finish work.
0:24:50 > 0:24:53And back in Telford, Kumar has learned a valuable lesson.
0:24:53 > 0:24:57Always see the property, view it before you actually bid for it.
0:25:03 > 0:25:07But first, we return to the bracing sea air of Worthing
0:25:07 > 0:25:08on England's South Coast
0:25:08 > 0:25:11where, earlier, I wandered around this roomy terraced house
0:25:11 > 0:25:13not far from the seafront.
0:25:13 > 0:25:17With a guide price at auction of 220,000 to 250,000,
0:25:17 > 0:25:22it was sold as an HMO or House of Multiple Occupancy.
0:25:22 > 0:25:25But four bedrooms and two reception rooms
0:25:25 > 0:25:28plus this open-plan kitchen/diner was crying out
0:25:28 > 0:25:32for someone to turn it into a really great family home.
0:25:36 > 0:25:40And with a bid of £225,000,
0:25:40 > 0:25:43the new owners were husband and wife property-developing team
0:25:43 > 0:25:44Brian and Gaynor.
0:25:44 > 0:25:46What are you going to do with it?
0:25:46 > 0:25:49Will you keep it that way or change it back into a family house?
0:25:49 > 0:25:51We're going to turn it into a family house.
0:25:51 > 0:25:54I think, you know, that's what it really lends itself to.
0:25:56 > 0:26:00Originally an IT specialist, Brian retrained as an electrician
0:26:00 > 0:26:03when the couple renovated their previous house,
0:26:03 > 0:26:05so he would be dealing with most of the technical work
0:26:05 > 0:26:08while Gaynor would act as project manager,
0:26:08 > 0:26:10although she did offer up some quite novel ideas
0:26:10 > 0:26:12on the decorating front.
0:26:14 > 0:26:17We need to renovate the kitchen. We need to do something with that.
0:26:17 > 0:26:19I've done kitchens like this and painted them
0:26:19 > 0:26:22and covered them in wrapping paper and varnished them.
0:26:22 > 0:26:25- Will we see anything like that here? - Who knows?- Oh, really?
0:26:25 > 0:26:27- SHE LAUGHS - Watch this space.- Watch this space.
0:26:30 > 0:26:32But this project wouldn't all be fun and games.
0:26:32 > 0:26:34It was going to take a lot of hard work
0:26:34 > 0:26:36to knock this house back into shape.
0:26:36 > 0:26:40And the state of the roof certainly put a frown on Brian's brow.
0:26:41 > 0:26:43Are you worried about the roof?
0:26:43 > 0:26:45It's worse than I thought it was going to be.
0:26:45 > 0:26:48He worries about everything. If he wasn't worried, he'd be lying.
0:26:49 > 0:26:54Giving themselves six months and a maximum budget of £50,000,
0:26:54 > 0:26:57Gaynor and Brian set out to transform this tired,
0:26:57 > 0:27:00run down and leaky HMO
0:27:00 > 0:27:02into a warm and welcoming family home.
0:27:05 > 0:27:09We've come back eight months later to see the results.
0:27:29 > 0:27:33Gaynor and Brian appear to have finished this project beautifully,
0:27:33 > 0:27:37and in the kitchen, not a sheet of wrapping paper in sight.
0:27:37 > 0:27:40My great idea of we were just going to tart up the kitchen
0:27:40 > 0:27:42was to paint it.
0:27:42 > 0:27:45And, on a previous kitchen, I had used wrapping paper.
0:27:45 > 0:27:48They looked very nice, I've got to say.
0:27:48 > 0:27:51Not everybody agreed with me, but as it turned out,
0:27:51 > 0:27:53we ended up putting in a whole new kitchen,
0:27:53 > 0:27:55so the wrapping paper's still in the cupboard
0:27:55 > 0:27:59ready to be used for another day. SHE LAUGHS
0:28:01 > 0:28:03Bringing natural light into the new kitchen
0:28:03 > 0:28:06meant losing the shower room, the back extension
0:28:06 > 0:28:08and the lean-to at the side of the house,
0:28:08 > 0:28:10making way instead for French doors
0:28:10 > 0:28:14which lead out into a newly turfed and decked back garden.
0:28:15 > 0:28:19To finish off this kitchen/diner, a small loo had been added.
0:28:20 > 0:28:24Upstairs, the family bathroom has had a complete makeover,
0:28:24 > 0:28:27but the biggest change is in the master bedroom
0:28:27 > 0:28:30where Brian has added an en-suite.
0:28:30 > 0:28:32We thought, with a house with four bedrooms,
0:28:32 > 0:28:35you know, it would really benefit from having an en-suite
0:28:35 > 0:28:36in one of the rooms.
0:28:40 > 0:28:42This has been a thorough renovation.
0:28:42 > 0:28:46The roof has been fixed and the whole house re-plastered.
0:28:46 > 0:28:48Brian has fitted a new consumer unit
0:28:48 > 0:28:51and replaced various electrical circuits.
0:28:51 > 0:28:55A completely new boiler and central heating system has been installed,
0:28:55 > 0:29:00and this has led to an unexpected but very welcome discovery.
0:29:00 > 0:29:03We decided to put in a new boiler,
0:29:03 > 0:29:06and with that, it also meant taking up all the floors.
0:29:06 > 0:29:09- But what we found were beautiful pine floors...- Yeah.
0:29:09 > 0:29:12..underneath the laminate flooring, so it was a...
0:29:12 > 0:29:15It worked out really well in the end.
0:29:17 > 0:29:21Uncovering those floorboards was a wonderful stroke of good fortune.
0:29:21 > 0:29:24Original features just make such a difference
0:29:24 > 0:29:27to period properties like this one, and in my opinion,
0:29:27 > 0:29:30make this a really desirable family home.
0:29:30 > 0:29:33Brian and Gaynor have taken eight months to complete,
0:29:33 > 0:29:35but I'll forgive them for the two months overrun
0:29:35 > 0:29:39because I think they really have done such a fantastic job.
0:29:39 > 0:29:42But did they stick to their budget?
0:29:42 > 0:29:45We've spent just about £55,000,
0:29:45 > 0:29:50which is 5,000 over the top of the budget
0:29:50 > 0:29:54that we had allocated to this project, which was 50.
0:29:55 > 0:29:59I should think a small celebration might be in the offing.
0:29:59 > 0:30:03This project has all the makings of a potential success story.
0:30:05 > 0:30:07But before Gaynor and Brian crack open the bubbly,
0:30:07 > 0:30:11let's get the opinions of two local property experts,
0:30:11 > 0:30:14starting with the agent who first viewed the house.
0:30:14 > 0:30:16The layout of the property is fantastic,
0:30:16 > 0:30:18and it really suits the family market.
0:30:18 > 0:30:21The large kitchen/breakfast room gives space for a dining table,
0:30:21 > 0:30:24and the ground-floor cloakroom is a real benefit as well.
0:30:24 > 0:30:26The addition of the en-suite to the master bedroom is perfect.
0:30:26 > 0:30:29Location, location, location - the selling point for me.
0:30:29 > 0:30:32It's yards from the beach. You've got town centre shopping,
0:30:32 > 0:30:34restaurants, main line station
0:30:34 > 0:30:36and good quality family accommodation.
0:30:37 > 0:30:39Well, let's get some values now.
0:30:39 > 0:30:44Remember that Brian and Gaynor purchased this property for 225,000,
0:30:44 > 0:30:48and have spent 55 grand on its renovation,
0:30:48 > 0:30:51bringing the total cost to 280,000.
0:30:51 > 0:30:53A property like this for the resale market
0:30:53 > 0:30:56should achieve around £400,000 to £420,000.
0:30:56 > 0:30:59And for rental purposes, a town centre property like this
0:30:59 > 0:31:02should achieve around £1,800 per calendar month.
0:31:02 > 0:31:06The retail value of the property is in the region of £405,000,
0:31:06 > 0:31:10and the rental value will be in the region of £1,600 per calendar month.
0:31:11 > 0:31:15Those rental figures could mean a potential yield of nearly 8%.
0:31:15 > 0:31:18However, the couple always planned to resell,
0:31:18 > 0:31:20so what do they make of those valuations?
0:31:22 > 0:31:26We've already had an offer that we've accepted for £406,000,
0:31:26 > 0:31:29so we're very happy with that and we're going to sell.
0:31:30 > 0:31:35Wow! That's a whopping pre-tax profit of 126,000.
0:31:37 > 0:31:39So, just time for a little glass of champers
0:31:39 > 0:31:42before they start their next project. Right, guys?
0:31:43 > 0:31:45Are we doing it again, then?
0:31:46 > 0:31:49- I don't know. Shall we? - SHE LAUGHS
0:31:49 > 0:31:52You said, when we were doing it, we weren't doing any more.
0:31:52 > 0:31:54THEY LAUGH
0:31:54 > 0:31:56Apparently, we are. SHE LAUGHS
0:31:56 > 0:31:57# Let's get together
0:31:57 > 0:32:01# The two of us over a glass of champagne... #
0:32:05 > 0:32:08I'm in the town of Risca in South East Wales.
0:32:08 > 0:32:11The town got a bit of a boost in 2008
0:32:11 > 0:32:16when, after a gap of 46 years, the railway returned.
0:32:16 > 0:32:19This made the area much more accessible
0:32:19 > 0:32:21to hill walkers and mountain bikers.
0:32:22 > 0:32:25Well, in Risca, will the property I'm here to see
0:32:25 > 0:32:27be a risky investment?
0:32:27 > 0:32:31Well, first impressions, I think possibly not.
0:32:31 > 0:32:35Three-bed semidetached. £78,000 was the guide price.
0:32:35 > 0:32:40Lovely brick exterior, so that's a lovely start.
0:32:40 > 0:32:41Let's explore.
0:32:43 > 0:32:45So, what have we got?
0:32:46 > 0:32:48OK, that's a nice start.
0:32:48 > 0:32:51Quite an impressive sort of entrance little area here,
0:32:51 > 0:32:53but a few indications that, in its day,
0:32:53 > 0:32:56this would have been quite a prestigious house.
0:32:56 > 0:32:59There's some nice detailing along the coving there.
0:32:59 > 0:33:02But entrance area here
0:33:02 > 0:33:05through to your living area that's there.
0:33:05 > 0:33:07Again, you've got a few nice original features
0:33:07 > 0:33:10with those built-in cupboards with the lead glass windows in them,
0:33:10 > 0:33:13which is quite pretty. Stairs up to your bedrooms.
0:33:13 > 0:33:16And straightaway, you just get a really nice feel about this place.
0:33:16 > 0:33:19Lots of light coming in through the windows and good size.
0:33:19 > 0:33:21Look at this. Nice, high ceilings.
0:33:21 > 0:33:24Slightly dated fireplace, but, you know,
0:33:24 > 0:33:27at least you've got something there which could be a feature.
0:33:27 > 0:33:29And then, very much of its day,
0:33:29 > 0:33:33lots of sort of ancillary reception rooms.
0:33:33 > 0:33:35Down this little step here and into this room here,
0:33:35 > 0:33:37which is a sort of parlour,
0:33:37 > 0:33:40I suppose you would have called it in its day.
0:33:40 > 0:33:41Another open fire there.
0:33:41 > 0:33:43There's probably something you could do
0:33:43 > 0:33:46with the internal layout to modernise it a bit.
0:33:46 > 0:33:48Or, I think, possibly, in a new layout,
0:33:48 > 0:33:50this could be the kitchen
0:33:50 > 0:33:54because you come through here and this is the existing kitchen.
0:33:54 > 0:33:56As you can see, it's right at the back of the property.
0:33:56 > 0:33:58It's too small for the size of the house,
0:33:58 > 0:34:00even though you've got this nice little
0:34:00 > 0:34:03utility area/larder thing there.
0:34:03 > 0:34:07I would make this a really nice-sized utility area,
0:34:07 > 0:34:11make that the kitchen, and suddenly, you've got a very workable space.
0:34:11 > 0:34:15# A design for life. #
0:34:15 > 0:34:20This house is only a nip and a tuck away from being a great family home.
0:34:20 > 0:34:23Yes, there are a few corners that need attention,
0:34:23 > 0:34:26but with three great-sized rooms downstairs,
0:34:26 > 0:34:28you have plenty of space to shuffle them around
0:34:28 > 0:34:31for a much more 21st-century layout.
0:34:38 > 0:34:41So, upstairs, and at the top of the stairs,
0:34:41 > 0:34:43you've got a bathroom and a separate loo.
0:34:43 > 0:34:46Now, for once, I would contemplate knocking those two together
0:34:46 > 0:34:48cos, for a house this size,
0:34:48 > 0:34:50it isn't quite big enough to my mind.
0:34:50 > 0:34:52A smaller bedroom towards the back,
0:34:52 > 0:34:55and then a really nice landing area here.
0:34:55 > 0:34:57Strip that back, that'd be really pleasant.
0:34:57 > 0:35:00Then your two big bedrooms toward the front of the property.
0:35:01 > 0:35:03What's that all about?
0:35:06 > 0:35:09You've got this sliding door between this bedroom...
0:35:12 > 0:35:13..and this bedroom.
0:35:13 > 0:35:17- # Hello, wall - Hello
0:35:17 > 0:35:22# How'd things go for you today? #
0:35:22 > 0:35:23What's that all about?
0:35:23 > 0:35:26I mean, you'd expect that in some hotel bedrooms,
0:35:26 > 0:35:29but not really in a semi in South Wales.
0:35:29 > 0:35:32Hey, it's a design feature you don't see very often,
0:35:32 > 0:35:35so you could either make the most of it or block it up.
0:35:35 > 0:35:40# Too many walls have been built in between us... #
0:35:40 > 0:35:42I like a bit of open-plan myself,
0:35:42 > 0:35:45but not generally between two bedrooms.
0:35:45 > 0:35:49Up here, you can start to see a few more renovation pounds
0:35:49 > 0:35:52disappearing into the essential repairs pot.
0:35:52 > 0:35:55There are signs of rotting floors,
0:35:55 > 0:35:57but there are still lots of original features
0:35:57 > 0:35:59and lovely proportions.
0:36:00 > 0:36:04So, it's pretty spacious inside. What about outside space?
0:36:04 > 0:36:06Well, I've come to the rear of the property,
0:36:06 > 0:36:08and a few little outbuildings, which are always useful.
0:36:08 > 0:36:10I don't think much scope for an extension,
0:36:10 > 0:36:12although some of the neighbours have put one on,
0:36:12 > 0:36:14so that's something you could consider.
0:36:14 > 0:36:18But what you have got is a really nice-sized back garden.
0:36:18 > 0:36:20It's sort of terraced, which is good.
0:36:20 > 0:36:22Some existing plants, which is also good.
0:36:22 > 0:36:24You've got a greenhouse.
0:36:24 > 0:36:27It benefits from its own garage, which is doubly good.
0:36:27 > 0:36:28A, you've got the garage,
0:36:28 > 0:36:31and B, you've got an access road at the back there,
0:36:31 > 0:36:37so it's just adding to an already pretty nice, livable house.
0:36:37 > 0:36:41Other additions to the house are not quite as successful.
0:36:41 > 0:36:44You can see the way extra bits and pieces have been bolted on,
0:36:44 > 0:36:46like the cute little...
0:36:46 > 0:36:48Hmm, I guess it's a conservatory.
0:36:48 > 0:36:50And keeping that period feel going,
0:36:50 > 0:36:54there's also an authentic loo lurking amongst the outbuildings.
0:36:54 > 0:36:57But you could have a lot of fun with this house,
0:36:57 > 0:37:00and I think it would make a great family home.
0:37:00 > 0:37:03Time to find out if a local estate agent agrees with me.
0:37:03 > 0:37:05It needs a fair bit of work doing to this property,
0:37:05 > 0:37:07from sort of decoration to new carpets.
0:37:07 > 0:37:10I've noticed as well that it's single-glazed windows,
0:37:10 > 0:37:12so obviously, I think probably most people
0:37:12 > 0:37:13put double glazing in now.
0:37:13 > 0:37:17There has been a few sort of damp areas I've spotted as well,
0:37:17 > 0:37:18so I think they need addressing.
0:37:18 > 0:37:23I would probably think in the region of about £20,000 to £25,000
0:37:23 > 0:37:25needs spending on the property.
0:37:25 > 0:37:28Assuming you got it for anything like the guide price
0:37:28 > 0:37:30and spent £25,000 on its upgrade,
0:37:30 > 0:37:34that would take your spend to just past the £100,000 mark.
0:37:34 > 0:37:35So, would it be worth it?
0:37:36 > 0:37:38Once the work's complete,
0:37:38 > 0:37:43I feel the sale value would be between £135,000 to £140,000,
0:37:43 > 0:37:48and rental value, I feel, would be around £550 per calendar month.
0:37:50 > 0:37:53Well, yes, a bit of updating required,
0:37:53 > 0:37:54but nothing too daunting.
0:37:54 > 0:37:56Do that and what you've got yourself here
0:37:56 > 0:38:01is a really good quality, solid, semidetached property.
0:38:01 > 0:38:04Let's see who agreed when it went under the hammer.
0:38:05 > 0:38:07Lot number 24.
0:38:07 > 0:38:11I have a proxy bid on this. Guided at £78,000.
0:38:11 > 0:38:14I don't know. Start with a proxy bid at 70,000.
0:38:14 > 0:38:15At £70,000, I've got proxy.
0:38:15 > 0:38:1771. Thank you. 71.
0:38:17 > 0:38:19And two here now. 73. 73.
0:38:19 > 0:38:2274. 75. 76.
0:38:22 > 0:38:2477?
0:38:24 > 0:38:2777. 78. 79. And 80.
0:38:27 > 0:38:3281? 81. 81. The proxy's now out. 81, I've got, towards the back.
0:38:32 > 0:38:3482. It's with you at 81, sir.
0:38:34 > 0:38:3782 now, can I see? Thank you. At 82 there. 82.
0:38:37 > 0:38:4083. Back to you, sir. 83?
0:38:40 > 0:38:4283. 84 now. 84. 85?
0:38:42 > 0:38:4585. 86. 86, no.
0:38:45 > 0:38:46At 85 with you right at the back.
0:38:46 > 0:38:48You're now out, seated, and the proxy's out.
0:38:48 > 0:38:51At £85,000, and for the first time.
0:38:51 > 0:38:54At £85,000, then, for the second time.
0:38:54 > 0:38:58Third and last time, right at the back of the room at £85,000.
0:38:58 > 0:39:00- GAVEL BANGS - Yours, sir. Well done.
0:39:00 > 0:39:01Your number, please?
0:39:01 > 0:39:05The successful bid of 85,000 was made by Owen.
0:39:05 > 0:39:07Owen was at the very back of the auction room,
0:39:07 > 0:39:10so we couldn't see him, however, he came along to meet me
0:39:10 > 0:39:12at this nice house,
0:39:12 > 0:39:15which, it turns out, he knows rather well.
0:39:15 > 0:39:17- Owen, good to meet you. - Right. Pleased to meet you.
0:39:17 > 0:39:21- Congratulations.- Thank you.- Tell me why you wanted to buy this house.
0:39:21 > 0:39:23Well, it's opposite a property I own, where I live.
0:39:23 > 0:39:25- Opposite?- Yeah. - You live across the road?
0:39:25 > 0:39:27- I live across the road. - Oh, right.- Yeah.
0:39:27 > 0:39:30- So, you saw it up for auction, then, did you?- Yeah.
0:39:30 > 0:39:33I tried to buy it before auction, but we couldn't get anywhere,
0:39:33 > 0:39:36so we let it go to auction and bought it at auction.
0:39:36 > 0:39:40Right. Can I ask the price you were trying to pay for it beforehand?
0:39:40 > 0:39:42Was it more or less than you paid at the auction?
0:39:42 > 0:39:44Well, it was less I was trying to get it for,
0:39:44 > 0:39:47but I had my figure before I went to auction.
0:39:47 > 0:39:51Once I knew it was going to auction, you know, I didn't negotiate then.
0:39:51 > 0:39:53- I just let it go to auction.- Right.
0:39:53 > 0:39:56- Were you happy with what you paid in the end?- Yeah, it came on my mark.
0:39:56 > 0:39:58- That was my mark.- Right. - And that was it.
0:39:58 > 0:40:00Brilliant. So, why did you want to buy it?
0:40:01 > 0:40:05Just something to do up, and I had some money to move around,
0:40:05 > 0:40:07so I thought I'd just buy it.
0:40:07 > 0:40:09I can fall out of bed and jump into work and...
0:40:09 > 0:40:11MARTIN LAUGHS ..easy as that.
0:40:11 > 0:40:15- Yeah, it's certainly a great commute.- That's right.
0:40:15 > 0:40:17- Is this something you've done before?- Yes.
0:40:17 > 0:40:21This'll be the fifth in this street that I have done up,
0:40:21 > 0:40:25- and I've built three houses in the street.- Oh, wow.
0:40:25 > 0:40:26So, I just like to keep it local.
0:40:26 > 0:40:29- HE LAUGHS - Very local.
0:40:29 > 0:40:32# Just like me
0:40:32 > 0:40:34# They long to be
0:40:34 > 0:40:38# Close to you. #
0:40:38 > 0:40:40Normally, Owen sells on his properties,
0:40:40 > 0:40:43but for this one, he has a potential tenant lined up,
0:40:43 > 0:40:45so he might rent it out.
0:40:45 > 0:40:49And living across the road will make it handy to keep an eye on things.
0:40:50 > 0:40:54- So, is this what you do full-time? - I do do it full-time, yeah.
0:40:54 > 0:40:56Any other things you get involved in?
0:40:56 > 0:40:59I do a bit of farming. I've got about 160 acres.
0:40:59 > 0:41:01A bit of farming? 160 acres?
0:41:01 > 0:41:06- Well, I bought the land for future. - What kind of farming?- Beef.
0:41:06 > 0:41:09Do you do it on a daily basis or do you have a team of people
0:41:09 > 0:41:11- who look after the farm for you? - No, no, a daily basis.
0:41:11 > 0:41:12I do the farming before I go to work
0:41:12 > 0:41:14and I do the farming when I finish work.
0:41:14 > 0:41:17- HE CHUCKLES - And your work is doing up houses?
0:41:17 > 0:41:20- Yeah, well, and building work as well.- Right.
0:41:20 > 0:41:23Houses. New houses. Whichever takes my fancy.
0:41:23 > 0:41:25So, what was the interest in property?
0:41:25 > 0:41:26That's the day job, in a way?
0:41:26 > 0:41:31- Well, it's always been 50-50, more or less.- OK.
0:41:31 > 0:41:34People complained cos I went to the houses early in the morning,
0:41:34 > 0:41:36so I thought I'd do the farm first
0:41:36 > 0:41:38so I could get to the houses a bit later.
0:41:38 > 0:41:42- HE LAUGHS - Wow. And do you have weekends off?
0:41:42 > 0:41:44- Not very often, no.- No.
0:41:44 > 0:41:47And the game plan is to build up a pension pot, is it, then, or...?
0:41:47 > 0:41:50No, I just fancied this because it was opposite.
0:41:50 > 0:41:52So, tell me what you're going to do to this one.
0:41:52 > 0:41:57Well, a new damp course, rewire, new central heating system.
0:41:57 > 0:41:59Um, that's about it, really.
0:41:59 > 0:42:03- And redecorate.- Kitchen? - New kitchen, bathroom.
0:42:03 > 0:42:06It's a complete gut-out, really. MARTIN LAUGHS
0:42:06 > 0:42:10But no, no, it'll be up to, you know, a good standard.
0:42:10 > 0:42:13A good standard. And how much of that work can you do yourself?
0:42:13 > 0:42:16I can do it all, but with the regulations today,
0:42:16 > 0:42:19- you've got to get a ticket for everything, so...- Right.
0:42:19 > 0:42:21..there's two tickets I can't provide.
0:42:21 > 0:42:23- Gas and electric.- Gas and electric.
0:42:23 > 0:42:25Yeah, the tickets Owen refers to
0:42:25 > 0:42:28are gas and electrical safety certificates,
0:42:28 > 0:42:31and they are a must for landlords and homeowners.
0:42:31 > 0:42:34He has set aside a sensible budget of 20 grand,
0:42:34 > 0:42:39but given his 160 acres and 60 cattle to look after,
0:42:39 > 0:42:42how long is gutting and renovating this house going to take?
0:42:42 > 0:42:46- Depends on the weather and how the farm is going.- Right.
0:42:46 > 0:42:50- I'm governed by the hay and silage and everything else.- Wow.
0:42:50 > 0:42:53- Hopefully, three to five months.- OK.
0:42:53 > 0:42:55And then, when will you decide whether or not
0:42:55 > 0:42:57you're going to rent it or sell it?
0:42:57 > 0:42:59Depending on what the market's like,
0:42:59 > 0:43:02if it's picked up a bit, then it'll be sold.
0:43:02 > 0:43:05If it doesn't, then I've got the option of putting a renter in there.
0:43:05 > 0:43:07OK. Have you scouted the street out?
0:43:07 > 0:43:09Are there many more that could come under your wing?
0:43:09 > 0:43:12There's one, potentially. HE LAUGHS
0:43:12 > 0:43:17- You're already thinking about it. - You know, just wait.- Right. Wow.
0:43:17 > 0:43:20Does anyone ever tell you to slow down and chill out?
0:43:20 > 0:43:23- My daughters do, yeah. - And do you ignore them?
0:43:23 > 0:43:25- I am taking notice now. - Are you?- Yeah.
0:43:25 > 0:43:27I'm only doing 16 hours instead of 18.
0:43:27 > 0:43:30MARTIN LAUGHS But other than that...
0:43:30 > 0:43:32Well, listen, congratulations, and good luck with it.
0:43:32 > 0:43:35- Thank you very much.- We'll see how you get on.- Yeah. Lovely.
0:43:35 > 0:43:38Well, there's an old expression, isn't there?
0:43:38 > 0:43:41If you want something done, ask a busy person,
0:43:41 > 0:43:44and Owen is certainly that, starting his day as a farmer,
0:43:44 > 0:43:46having the middle bit as a property developer,
0:43:46 > 0:43:49and then going back to being a farmer again.
0:43:49 > 0:43:52- HE LAUGHS - At least he hasn't got very far
0:43:52 > 0:43:54to travel to work.
0:43:54 > 0:43:55You can find out how he gets on
0:43:55 > 0:43:57sorting this place out later in the show.
0:44:01 > 0:44:03That was the tale of the first property,
0:44:03 > 0:44:04but what about the other two?
0:44:04 > 0:44:06Yes, have the renovations been plain sailing
0:44:06 > 0:44:08or floundered on the rocks?
0:44:08 > 0:44:10I think it's time to find out.
0:44:11 > 0:44:13Back to Telford in Shropshire now,
0:44:13 > 0:44:17and a short walk away from the rejuvenated town centre.
0:44:17 > 0:44:20I like this two-bed flat guided at £55,000.
0:44:20 > 0:44:22Granted, it was a bit unloved,
0:44:22 > 0:44:25and I couldn't help thinking the space could be better used.
0:44:27 > 0:44:31I always want to try and create as much space as you possibly can.
0:44:31 > 0:44:34I'm hoping this is the bedroom.
0:44:34 > 0:44:37So, why couldn't you...? Let me just investigate.
0:44:38 > 0:44:41Unfortunately, due to the freeholder restrictions,
0:44:41 > 0:44:44that particular option was a no-no.
0:44:44 > 0:44:46There was plenty to be getting on with, though,
0:44:46 > 0:44:48but none of it seemed all that scary.
0:44:49 > 0:44:53All seems pretty cosmetic at the moment from what I can see,
0:44:53 > 0:44:55and there's no change in here.
0:44:55 > 0:44:58All just looks a little bit tired, could do with a lick of paint.
0:44:58 > 0:45:01Could do with some carpets, some new flooring in here,
0:45:01 > 0:45:05and a brand kitchen as well, but nothing major.
0:45:05 > 0:45:08The flat was bought for £62,000 by Kumar,
0:45:08 > 0:45:12who is a part-time developer with a whole load of local properties.
0:45:12 > 0:45:16Surely he'd make no mistake when buying at auction.
0:45:16 > 0:45:18- Did you read the legal pack?- No, I didn't read the legal pack...- Ah!
0:45:18 > 0:45:21..and I didn't view the property.
0:45:21 > 0:45:23- Two! Two of our rules.- Two, yeah.
0:45:23 > 0:45:26You know I will never tire of reminding you guys
0:45:26 > 0:45:29to read the legal pack. I'll never tire of it.
0:45:29 > 0:45:32And, of course, there was a bit of expensive detail
0:45:32 > 0:45:34in that legal pack as well.
0:45:34 > 0:45:37The costs and charges in the next five years,
0:45:37 > 0:45:39which will be spent on the block,
0:45:39 > 0:45:43- which is roughly about £4,000 to £5,000.- OK.
0:45:43 > 0:45:46Yeah, even the most experienced developers make mistakes.
0:45:46 > 0:45:49Let's hope he doesn't pay for it in the long run.
0:45:49 > 0:45:53Kumar paid £62,000 for the flat, and had a budget of only 3,000,
0:45:53 > 0:45:56but his secret weapon was Amrit, his builder,
0:45:56 > 0:45:58who was confident he could turn around the flat
0:45:58 > 0:46:00in around two to three weeks.
0:46:02 > 0:46:04We've come back four weeks later
0:46:04 > 0:46:06to see if his fast turnaround has happened.
0:46:06 > 0:46:10# But if you're looking for fast love
0:46:10 > 0:46:15# If that's love in your eyes
0:46:15 > 0:46:16# It's more than enough
0:46:16 > 0:46:19# Had some bad love
0:46:19 > 0:46:26# Some fast love is all that I've got on my mind... #
0:46:28 > 0:46:31This fast and furious flat fix has turned
0:46:31 > 0:46:34a tired, old apartment into a bright, modern home.
0:46:34 > 0:46:37But it's not just a lick of paint and some wallpaper.
0:46:39 > 0:46:40The whole bathroom was replaced,
0:46:40 > 0:46:43so all the units are brand-new units.
0:46:43 > 0:46:46Then, in the kitchen, a good cleaning went up,
0:46:46 > 0:46:49and then the whole kitchen was kind of,
0:46:49 > 0:46:51you know, decorated, painted.
0:46:51 > 0:46:54In every single room, the flooring was replaced
0:46:54 > 0:46:57just to give a bit of lift to the property.
0:46:57 > 0:47:01Kumar has been renovating properties for over ten years now,
0:47:01 > 0:47:04and he and his builder Amrit have it down to a T,
0:47:04 > 0:47:06and they don't hang around.
0:47:06 > 0:47:08But not everything is under their control.
0:47:08 > 0:47:11Just when they thought they'd crossed the finish line...
0:47:11 > 0:47:13I came, after a week's time,
0:47:13 > 0:47:16and I saw the bathroom a little bit flooded,
0:47:16 > 0:47:18so I noticed there was a leak in the radiator.
0:47:18 > 0:47:21Because of this, the water was going on the floor.
0:47:21 > 0:47:24Obviously, it was a brand-new floor, so I called Amrit.
0:47:24 > 0:47:26"Amrit, come on. Save my life, mate."
0:47:26 > 0:47:27So, he came back and sorted it out.
0:47:27 > 0:47:30It was just, like, for Amrit, a ten-minute job,
0:47:30 > 0:47:32but obviously, it was a nasty surprise,
0:47:32 > 0:47:34which I wasn't expecting, really.
0:47:35 > 0:47:37But was the radiator the only thing to spring a leak?
0:47:37 > 0:47:40How did Kumar's two to three grand budget hold up?
0:47:42 > 0:47:46Well, give or take, I've spent about £2,300 altogether,
0:47:46 > 0:47:48and that includes the new flooring
0:47:48 > 0:47:51and it includes the painting work, new bathroom and everything.
0:47:51 > 0:47:57# That's why I'm easy... #
0:47:57 > 0:47:58It's no real surprise
0:47:58 > 0:48:02to find that Kumar and Amrit are on time and in budget.
0:48:02 > 0:48:03They're like a well-oiled machine
0:48:03 > 0:48:05when it comes to turnaround in Telford.
0:48:05 > 0:48:08But Kumar skipped a couple of key points when he bought this flat.
0:48:08 > 0:48:10He didn't view it before the auction,
0:48:10 > 0:48:12and he didn't read the legal pack.
0:48:12 > 0:48:15Yeah, I took a bit of a gamble on this property,
0:48:15 > 0:48:18but it was a calculated gamble because it's a leasehold property.
0:48:18 > 0:48:20Structurally, anything couldn't be wrong
0:48:20 > 0:48:21because it's a leasehold apartment.
0:48:21 > 0:48:23Previously, I bought properties at auction
0:48:23 > 0:48:25where they were in good shape.
0:48:25 > 0:48:27But because I viewed those properties before,
0:48:27 > 0:48:29this one, I didn't view it,
0:48:29 > 0:48:31but I still would have gone for this property.
0:48:31 > 0:48:34But the learning curve has been always see the property,
0:48:34 > 0:48:37view it before you actually bid for it.
0:48:38 > 0:48:39That confidence in the leasehold
0:48:39 > 0:48:42has luckily held true for Kumar on this flat.
0:48:42 > 0:48:44And as we know, leasehold properties
0:48:44 > 0:48:46can cost you money in common repairs,
0:48:46 > 0:48:50so do read the small print or at least read the legal pack.
0:48:50 > 0:48:56Kumar bought the flat for £62,000 and spent 2,300 on renovations,
0:48:56 > 0:49:00bringing his total spend to £64,300.
0:49:03 > 0:49:05It's time to find out what two local estate agents think
0:49:05 > 0:49:08of Kumar and Amrit's work.
0:49:08 > 0:49:10It's the first time I've seen the property.
0:49:10 > 0:49:12It's in a great area, great rental location,
0:49:12 > 0:49:15and it looks like it'll make a good rental yield.
0:49:15 > 0:49:17Having had the second visit, I'm quite impressed with it.
0:49:17 > 0:49:20It's been given a brief makeover - nothing special -
0:49:20 > 0:49:23but I think, with a view to the kind of market it's meant for,
0:49:23 > 0:49:24it's really spot-on, I suppose.
0:49:24 > 0:49:27I wouldn't have suggested spending any more on it,
0:49:27 > 0:49:30and to do it on a budget is probably the best idea.
0:49:30 > 0:49:32It's always important not to overspend
0:49:32 > 0:49:36if you have your eye on a profit, so knowing your market is crucial.
0:49:38 > 0:49:41And now, the moment of truth. What about those valuations?
0:49:41 > 0:49:45I would value this property for sales at £62,000.
0:49:45 > 0:49:49I would value this property for rental at £475 per calendar month.
0:49:49 > 0:49:52Rental potential for the property is £500 per calendar month.
0:49:52 > 0:49:55As for sales, it would be £67,000.
0:49:56 > 0:49:59Based on those figures, if Kumar sold the flat,
0:49:59 > 0:50:02he would either lose £2,400
0:50:02 > 0:50:06or make 2,700 before costs and expenses.
0:50:06 > 0:50:11But the rental figures mean a yield of between 8.8% and 9.3%.
0:50:11 > 0:50:12So, what does Kumar think?
0:50:13 > 0:50:17I would be happy with 65,000 if that's the valuation.
0:50:17 > 0:50:20I'm much more, you know, for the rental yield
0:50:20 > 0:50:23rather than the value of the property going up.
0:50:23 > 0:50:25And there speaks a man who knows his priorities.
0:50:25 > 0:50:29Anything around 9% is a very healthy yield indeed.
0:50:29 > 0:50:32But what's next for this part-time property developer?
0:50:33 > 0:50:37I have already bought another investment property in an auction.
0:50:37 > 0:50:39I'm quite content with the portfolio I have,
0:50:39 > 0:50:41I'm quite happy with the day job I have,
0:50:41 > 0:50:46and I'll just carry on as it is for the next 15 years so -
0:50:46 > 0:50:47maybe ten years if I'm lucky -
0:50:47 > 0:50:50and then call it a day and retire, really.
0:50:54 > 0:50:57It's time to go back to Risca near Newport in Wales
0:50:57 > 0:51:00to see what happened to that semidetached house
0:51:00 > 0:51:02with elegant, spacious rooms
0:51:02 > 0:51:08and brick-built outbuildings that just went on and on and on.
0:51:08 > 0:51:09The kitchen had seen better days,
0:51:09 > 0:51:12but it presented opportunities aplenty.
0:51:13 > 0:51:16You come through here and this is the existing kitchen.
0:51:16 > 0:51:19As you can see, it's right at the back of the property.
0:51:19 > 0:51:21It's too small for the size of the house,
0:51:21 > 0:51:23even though you've got this nice little
0:51:23 > 0:51:26utility area/larder thing there.
0:51:27 > 0:51:30Upstairs, the tired feeling continued
0:51:30 > 0:51:33with each of the three bedrooms needing a whole lot of love.
0:51:33 > 0:51:36The bathroom is just about the right size
0:51:36 > 0:51:39for a small studio flat, not a three-bedroom house.
0:51:39 > 0:51:42And there was a special feature that had me guessing.
0:51:45 > 0:51:46What's that all about?
0:51:49 > 0:51:53You've got this sliding door between this bedroom...
0:51:55 > 0:51:57..and this bedroom.
0:51:58 > 0:52:01The property was bought by Owen for 85,000.
0:52:01 > 0:52:04Owen is a local property developer and builder,
0:52:04 > 0:52:07and when I say local, I mean across the road.
0:52:07 > 0:52:11And since developing properties wasn't enough to keep Owen busy,
0:52:11 > 0:52:13he saw that he could squeeze in
0:52:13 > 0:52:15a bit of cattle farming in the mornings.
0:52:16 > 0:52:20People complained cos I went to the houses early in the morning,
0:52:20 > 0:52:21so I thought I'd do the farm first
0:52:21 > 0:52:23so I could get to the houses a bit later.
0:52:23 > 0:52:27- HE LAUGHS - Wow. And do you have weekends off?
0:52:27 > 0:52:30Um, not very often, no.
0:52:30 > 0:52:33In what time he could spend away from farm work,
0:52:33 > 0:52:36Owen planned on a thorough upgrade.
0:52:36 > 0:52:39He hoped to spend no more than £20,000,
0:52:39 > 0:52:42and aimed to complete the job within three to five months.
0:52:43 > 0:52:46Well, we're back seven months later to see if this builder,
0:52:46 > 0:52:51developer and farmer has managed to sow the seeds of success.
0:52:51 > 0:52:55# I wish I lived in the golden age... #
0:53:03 > 0:53:07From tip to toe, this semi has certainly got its glamour back.
0:53:09 > 0:53:11I decided to do it before I bought it.
0:53:11 > 0:53:13It was a house that had to be gutted.
0:53:13 > 0:53:15There was no half measures, and it had to be done.
0:53:15 > 0:53:19All new ceilings, new floors, central heating,
0:53:19 > 0:53:20done the damp course.
0:53:20 > 0:53:22The damp course was up to standard,
0:53:22 > 0:53:25but if you do sell the house, you need a warranty,
0:53:25 > 0:53:27so we were better to do it while we were doing it.
0:53:27 > 0:53:30Then you've got that safeguard, you know, to sell it.
0:53:35 > 0:53:38In fact, the only thing that hasn't been replaced
0:53:38 > 0:53:40on the ground floor is the staircase.
0:53:40 > 0:53:44The star of the show down here is the brand-new kitchen,
0:53:44 > 0:53:46which has been created by knocking together
0:53:46 > 0:53:51the old kitchen/parlour/store room and ramshackle outbuildings
0:53:51 > 0:53:54to make a fabulous, south-facing kitchen/diner.
0:53:55 > 0:54:00And there was even space left over to create a downstairs loo as well.
0:54:03 > 0:54:07And upstairs, there's been a bit of a room revolution.
0:54:07 > 0:54:10My thought was to combine the bathroom and toilet,
0:54:10 > 0:54:12but Owen has gone one better.
0:54:13 > 0:54:18Yeah, a lot of changes. The bathroom was in this room here.
0:54:18 > 0:54:21We've moved that and put it in here now.
0:54:21 > 0:54:22And the walls upstairs,
0:54:22 > 0:54:25we've pulled in and rejigged them about
0:54:25 > 0:54:28just to bring the extra bedroom spaces,
0:54:28 > 0:54:33and take out the dead spaces to make it larger and more roomy.
0:54:33 > 0:54:35So, we haven't altered the structural side of it.
0:54:35 > 0:54:38It's just, well, rejigged it.
0:54:39 > 0:54:41Spoken like a true builder.
0:54:41 > 0:54:45Rejigging the walls sounds like he's shuffling a pack of cards.
0:54:47 > 0:54:51Outside, the odd outbuildings have been either removed
0:54:51 > 0:54:53or incorporated into the house,
0:54:53 > 0:54:55and it's resulted in a sheltered patio
0:54:55 > 0:54:58and a much better-looking house all round.
0:54:59 > 0:55:02I hadn't done a whole property for a long time,
0:55:02 > 0:55:05and an hour into the job, I realised why I stopped doing it.
0:55:05 > 0:55:07Oh, I'm well pleased with the finish on it.
0:55:07 > 0:55:11You know, I could go on spending money forever and a day,
0:55:11 > 0:55:13but you just draw the line, and once you're happy with it,
0:55:13 > 0:55:15that's where you finish.
0:55:15 > 0:55:17Owen took a bit longer
0:55:17 > 0:55:20than his original three- to five-month time schedule,
0:55:20 > 0:55:25but he did have to fit in his beef farm around his building work.
0:55:25 > 0:55:29He spent slightly over his estimated budget of 20,000,
0:55:29 > 0:55:32coming in at £21,600.
0:55:32 > 0:55:34And added to the purchase price,
0:55:34 > 0:55:38this brings the total spend on the house to 106,600.
0:55:42 > 0:55:45Time to find out what two local estate agents think
0:55:45 > 0:55:46of Owen's handiwork.
0:55:48 > 0:55:49I really like the layout.
0:55:49 > 0:55:51It's got, obviously, individual rooms,
0:55:51 > 0:55:55so people can have a bit more space, especially if they've got children
0:55:55 > 0:55:58and want extra rooms rather than just one, big, open-plan room.
0:55:58 > 0:56:00They've changed the layout upstairs as well,
0:56:00 > 0:56:02which I really, really like.
0:56:02 > 0:56:04I think it's a lovely property,
0:56:04 > 0:56:07been renovated to a very high standard.
0:56:07 > 0:56:10The selling points of the property are the sizes of the rooms,
0:56:10 > 0:56:12the layout where the kitchen goes
0:56:12 > 0:56:15into the dining room, the garden is south-facing,
0:56:15 > 0:56:17and you've got the advantage of
0:56:17 > 0:56:19the off-road parking with a garage.
0:56:19 > 0:56:21All very positive stuff.
0:56:21 > 0:56:26So, will Owen be reaping rewards on his investment of nearly 107,000?
0:56:26 > 0:56:31I see this property being in the region of £135,000 to £140,000,
0:56:31 > 0:56:37and on the rental market, I see it being £550 per calendar month.
0:56:37 > 0:56:38The resale value of the property
0:56:38 > 0:56:43would be in the region of £145,000 to £150,000.
0:56:43 > 0:56:47The letting value would be in the region of
0:56:47 > 0:56:50£550 to £600 per calendar month.
0:56:50 > 0:56:52Based on that top figure,
0:56:52 > 0:56:56there's a potential pre-tax profit of around 43,000.
0:56:56 > 0:56:59If he did decide to rent, the yield -
0:56:59 > 0:57:03again, based on that higher figure - would be just under 7%.
0:57:03 > 0:57:08So, will these figures make him plump for rental or resale?
0:57:08 > 0:57:11I'm surprised at the value. More than I thought.
0:57:11 > 0:57:13I never budgeted for that, so it's all a bonus.
0:57:13 > 0:57:16Rental - about on the mark.
0:57:16 > 0:57:18Probably will put it on the market to try and sell.
0:57:18 > 0:57:22I don't like renting, not when I've got a good property.
0:57:22 > 0:57:25I've done about five other properties in the street,
0:57:25 > 0:57:27sold them over the years,
0:57:27 > 0:57:29so, you know, the street's been good to me.
0:57:29 > 0:57:31Well, I've been good to the street as well
0:57:31 > 0:57:34cos I put the properties back to right.
0:57:34 > 0:57:36And with the property finished and the summer over,
0:57:36 > 0:57:39is Owen finally going to get a chance to take a rest?
0:57:40 > 0:57:42Our plan is now...
0:57:42 > 0:57:45The cattle are going, most of them.
0:57:45 > 0:57:47Flights are booked to Australia.
0:57:47 > 0:57:49See my grandchildren, then I'll come back
0:57:49 > 0:57:51and decide what we'll do from there.
0:57:53 > 0:57:57Well, property development is always full of potential problems
0:57:57 > 0:57:58and hideous hazards.
0:57:58 > 0:58:02Yeah, but there can be rich rewards if you get it right.
0:58:02 > 0:58:05So, join us next time for more Homes Under The Hammer stories.
0:58:05 > 0:58:06- Goodbye.- Bye-bye.- Goodbye.