Episode 14

Download Subtitles

Transcript

0:00:02 > 0:00:03Hello and welcome to the show.

0:00:03 > 0:00:07Some investment properties need loads of work from top to bottom.

0:00:07 > 0:00:09And others need just a bit of sprucing up and they do you well.

0:00:09 > 0:00:13The trick is knowing what to do and what to pay.

0:00:13 > 0:00:15And when you do know,

0:00:15 > 0:00:18why don't you head down to your local property auction?

0:00:44 > 0:00:47If you buy wisely, the property market can give great returns.

0:00:47 > 0:00:50Yeah, but were today's buyers wise or not?

0:00:50 > 0:00:53Let's find out. Here's what they bought.

0:00:53 > 0:00:54Today we're all at sea.

0:00:54 > 0:00:58There are stormy waters in this three-bed semi in Welling.

0:00:58 > 0:01:01I am greeted by a sea of polystyrene ceiling tiles.

0:01:03 > 0:01:06This terrace in Nottingham gives me a sinking feeling.

0:01:06 > 0:01:09There's nowhere to put the captain's table.

0:01:09 > 0:01:13Cos there's neither a kitchen nor a dining room in here.

0:01:13 > 0:01:16And this three-bed detached in Callington, in Cornwall,

0:01:16 > 0:01:18isn't exactly shipshape.

0:01:18 > 0:01:20But will it float my boat?

0:01:20 > 0:01:23I am expecting a complete wreck.

0:01:24 > 0:01:27All of these properties have been sold at auction.

0:01:27 > 0:01:30We'll find out who bought them and what they paid for them

0:01:30 > 0:01:31when they went under the hammer.

0:01:31 > 0:01:32Sold.

0:01:35 > 0:01:39This is Welling, in the London borough of Bexley,

0:01:39 > 0:01:42which not only offers a quick 30-minute commute

0:01:42 > 0:01:47by train to the city, but also has a lovely park, great schools,

0:01:47 > 0:01:51and a high street with plenty of amenities on your doorstep.

0:01:51 > 0:01:52It really does have...

0:01:52 > 0:01:57# The best of both worlds. #

0:01:57 > 0:01:59Well, this is a popular street.

0:01:59 > 0:02:01Only a ten-minute walk from the high street.

0:02:01 > 0:02:05And I'm here to see a three-bedroom semidetached house

0:02:05 > 0:02:09which had a guide price of £220,000-plus.

0:02:09 > 0:02:12So the neighbouring houses look well-kept.

0:02:12 > 0:02:14And then, aha.

0:02:14 > 0:02:16I think the port on these windows

0:02:16 > 0:02:19have certainly seen better days, don't you?

0:02:19 > 0:02:21Guess which one is the auction property.

0:02:23 > 0:02:26The exterior is really very worn out.

0:02:26 > 0:02:30The wood looks damp and rotten, which is a telltale sign

0:02:30 > 0:02:32that there is worse to come.

0:02:35 > 0:02:41So, on the inside, I am greeted by a sea of polystyrene ceiling tiles.

0:02:41 > 0:02:43Look at them, they're everywhere.

0:02:43 > 0:02:46And it is, to be fair, a bit of a state on the inside.

0:02:46 > 0:02:49Although you could sand these back and paint them,

0:02:49 > 0:02:51and they could look quite lovely.

0:02:51 > 0:02:53But there are no '30s features in this property at all.

0:02:53 > 0:02:56More ceiling tiles. More peeling paper.

0:02:56 > 0:02:58I mean, it's bad enough out the front.

0:02:58 > 0:03:00Let alone... Look!

0:03:00 > 0:03:03I mean, that is wet to the touch. There's lots going on under there.

0:03:03 > 0:03:06In fact, I'd probably get an expert in to have a look around this place.

0:03:06 > 0:03:09You've got a radiator, which tells me there's central heating.

0:03:09 > 0:03:10But you've got a gas fire over there.

0:03:10 > 0:03:13There's stuff everywhere that's going to need to be cleared out.

0:03:13 > 0:03:17But if you can see beyond that, you've got a nice big space.

0:03:17 > 0:03:19The windows, sadly... Look.

0:03:19 > 0:03:22You've got lovely leaded light there. Pretty little features.

0:03:22 > 0:03:26But because they're only single-glazed, I think they're

0:03:26 > 0:03:29going to have to go and be replaced with something a lot more modern.

0:03:29 > 0:03:32- But for starters... - SHE GROANS

0:03:32 > 0:03:34..I'd be using that.

0:03:35 > 0:03:38Getting rid of all that stuff in the house would certainly suck.

0:03:38 > 0:03:39And at the moment,

0:03:39 > 0:03:43it's making it hard to properly look around the house and investigate.

0:03:43 > 0:03:46It's crowded, confined and cramped.

0:03:46 > 0:03:51# I want to break free

0:03:51 > 0:03:54# I want to break free... #

0:03:54 > 0:03:57As I said, the trick is to look past all this stuff

0:03:57 > 0:04:00and focus on the issues.

0:04:00 > 0:04:04Upstairs, the plaster around the windows has completely blown.

0:04:04 > 0:04:08The other rooms aren't so bad. But there are those awful ceiling tiles.

0:04:08 > 0:04:11And as you would have heard me bang on about before,

0:04:11 > 0:04:12they can be a fire hazard.

0:04:16 > 0:04:20The bathroom is old and dated and needs to be replaced.

0:04:20 > 0:04:22But at least it's upstairs.

0:04:22 > 0:04:24Back downstairs, I think

0:04:24 > 0:04:27I've found a way to get a bit more space out of this property.

0:04:27 > 0:04:30As is typical of '30s houses, well,

0:04:30 > 0:04:33the kitchen here is a little bit on the small side.

0:04:33 > 0:04:35But the good news is - out here, well,

0:04:35 > 0:04:38you've got a really long garden.

0:04:38 > 0:04:42So I think there's just enough space to extend

0:04:42 > 0:04:46and create a really nice, large kitchen/diner out the back here.

0:04:46 > 0:04:50Though beware, you might get caught in the sticky web of planning.

0:04:50 > 0:04:52This house looks as though it might have had an extension

0:04:52 > 0:04:54added in the past.

0:04:54 > 0:04:57So you might not be allowed to add anything else

0:04:57 > 0:04:58under permitted development.

0:04:58 > 0:05:02This is one to talk nicely to the planning department about.

0:05:02 > 0:05:05If you didn't have the budget for an extension, another option could be

0:05:05 > 0:05:09knocking the wall down between the kitchen and the dining room

0:05:09 > 0:05:12to create an open-plan kitchen/diner.

0:05:12 > 0:05:15A family house needs a family space.

0:05:15 > 0:05:18So either option needs to be looked at, in my opinion.

0:05:18 > 0:05:20There's just one last thing.

0:05:21 > 0:05:24With this property, you do get a garage.

0:05:24 > 0:05:25Wait a minute.

0:05:25 > 0:05:27But to get there,

0:05:27 > 0:05:31you've got to go through this very narrow shared driveway,

0:05:31 > 0:05:34right the way down to the end of the garden.

0:05:34 > 0:05:35Go on.

0:05:35 > 0:05:40FRANTIC MUSIC

0:05:40 > 0:05:41All right, you can come back now.

0:05:43 > 0:05:46You see? I told you it was far away.

0:05:46 > 0:05:48And I don't even think you'd get a car in

0:05:48 > 0:05:50once you got all the way down there.

0:05:50 > 0:05:53And then you've got to walk all the way back to he house. No.

0:05:53 > 0:05:56I think it's fair to say you could use that for storage.

0:05:56 > 0:05:59But a much better thing to do with this property would be to

0:05:59 > 0:06:02create some off-road parking out the front there.

0:06:02 > 0:06:03You feeling all right?

0:06:07 > 0:06:11So, after a quick, old breather, we're back in action.

0:06:11 > 0:06:14And just in time too, as a local estate agent has arrived to

0:06:14 > 0:06:16give us his thoughts on the house.

0:06:18 > 0:06:20Had a look round. You need new windows.

0:06:20 > 0:06:22New kitchen, new bathroom.

0:06:22 > 0:06:25The plasterwork is blown in many places.

0:06:25 > 0:06:28It looks like the central heating would need upgrading.

0:06:28 > 0:06:29Possibly a re-wire.

0:06:29 > 0:06:33I would be inclined to remove the wall between the kitchen

0:06:33 > 0:06:36and the dining room to make a nice kitchen/diner.

0:06:36 > 0:06:39There's potential to extend the property,

0:06:39 > 0:06:41particularly into the loft,

0:06:41 > 0:06:43to create a fourth bedroom with an en suite.

0:06:43 > 0:06:47A number of properties locally, they have also done the same.

0:06:47 > 0:06:50Would parking out the front also add value?

0:06:50 > 0:06:53Creating off-street parking at the front of the property would

0:06:53 > 0:06:55increase the value by between £5,000 and £10,000.

0:06:55 > 0:06:57What kind of figures could we be looking at

0:06:57 > 0:06:59once the renovation is done?

0:06:59 > 0:07:05Once renovated, the property would achieve in the region of £370,000.

0:07:05 > 0:07:07And in terms of the rental value,

0:07:07 > 0:07:12I would estimate around £1,500 per calendar month.

0:07:12 > 0:07:16If you were to extend the property into the loft and across the rear,

0:07:16 > 0:07:21I would estimate that the value would increase by around £60,000.

0:07:23 > 0:07:25Yes, it needs plenty of work,

0:07:25 > 0:07:29but this is a 1930s semi with a layout that could be improved.

0:07:29 > 0:07:31And it's got a decent-sized garden.

0:07:31 > 0:07:35So that really is a good start. Who wanted to take this on?

0:07:35 > 0:07:37Let's head to auction and find out.

0:07:37 > 0:07:39Three-bed semi. Needs some upgrading.

0:07:39 > 0:07:40You've got a garage as well.

0:07:40 > 0:07:43It's always dead handy to have a garage.

0:07:43 > 0:07:45You can all get a chance at 200.

0:07:46 > 0:07:47Are you sure?

0:07:47 > 0:07:49200 with you.

0:07:49 > 0:07:51Anyone else?

0:07:51 > 0:07:52200. Anyone else?

0:07:52 > 0:07:54205 with you.

0:07:54 > 0:07:57You better not stop. You stopped halfway through the last time.

0:07:57 > 0:07:59205. 210.

0:07:59 > 0:08:00215.

0:08:00 > 0:08:01Five.

0:08:01 > 0:08:06There's stopping in this lot, so we join the action at 280,000.

0:08:06 > 0:08:10282, sir? Try and help. 282.

0:08:10 > 0:08:11284.

0:08:12 > 0:08:15I think there's a bit more in this. I thought there was. 286.

0:08:15 > 0:08:17288.

0:08:17 > 0:08:19288, madam? 288.

0:08:19 > 0:08:22290 standing up, sir.

0:08:22 > 0:08:24With you. 290.

0:08:24 > 0:08:26Taking your bid. 290.

0:08:26 > 0:08:27292.

0:08:27 > 0:08:28294.

0:08:31 > 0:08:32You'll regret it going home.

0:08:32 > 0:08:34294.

0:08:34 > 0:08:37Just for a couple of thousand more. 294.

0:08:37 > 0:08:40Yes? You've got to do it. 294.

0:08:40 > 0:08:42Makes sense. 294.

0:08:42 > 0:08:45296. 298?

0:08:45 > 0:08:47298.

0:08:47 > 0:08:50Round it off to 300? 298 here.

0:08:50 > 0:08:51First time. Second time.

0:08:52 > 0:08:54Third and last time.

0:08:56 > 0:08:58Sold. 298. You got there.

0:08:58 > 0:09:04Winning with the bid of 298,000 were husband and wife Andrew and Lale.

0:09:04 > 0:09:05They've brought their son,

0:09:05 > 0:09:08Jimmy, along to check out the latest purchase.

0:09:08 > 0:09:10Lale is a Turkish interpreter

0:09:10 > 0:09:14and Andrew runs a Turkish textiles and dance-wear company.

0:09:14 > 0:09:17They bought this house to add to their rental portfolio

0:09:17 > 0:09:20and hope to cash in on their rental properties in the future

0:09:20 > 0:09:23to buy themselves a larger family home.

0:09:23 > 0:09:27So let's hope this project turns out to be a delight.

0:09:27 > 0:09:29Guys, congratulations. Lovely to meet you both.

0:09:29 > 0:09:32- Andrew. Lale.- Thank you. - Now, tell me about this property.

0:09:32 > 0:09:35Who was the one that wanted to bid for it the most?

0:09:35 > 0:09:36We both wanted to bid.

0:09:36 > 0:09:39We had a list of about ten properties at the auction.

0:09:39 > 0:09:43And it was... We gave this one one tick, didn't we, on the list?

0:09:43 > 0:09:45But there were some properties which had three ticks.

0:09:45 > 0:09:47- Oh.- But we didn't get to those.

0:09:47 > 0:09:49So this wasn't your chosen property really?

0:09:49 > 0:09:51Well, it was a bit disappointing,

0:09:51 > 0:09:56because the property after this one, which we'd also had our eye on,

0:09:56 > 0:09:59sold for about £100,000 less than we thought it would.

0:09:59 > 0:10:01And how many ticks did that have against it?

0:10:01 > 0:10:03- That had three.- Oh! - And this only had one.

0:10:03 > 0:10:05This only had one and you paid more for this

0:10:05 > 0:10:06than you would have paid for that.

0:10:06 > 0:10:09So, I want to know about your level of research, guys.

0:10:09 > 0:10:12Did you look at the property before you bought it?

0:10:12 > 0:10:13- No.- No.

0:10:13 > 0:10:16We drove past after the auction and we were a little bit shocked.

0:10:16 > 0:10:18We looked through the windows

0:10:18 > 0:10:20and we could see that it was in a terrible state.

0:10:20 > 0:10:22But I think it'll be OK.

0:10:22 > 0:10:25We've got a good builder, who's done work for us in the past.

0:10:25 > 0:10:29So I think it's cosmetic, most of it.

0:10:29 > 0:10:32Apart from the wiring and the gas, which...

0:10:32 > 0:10:34And the window and the doors.

0:10:34 > 0:10:35And polystyrene tiles.

0:10:35 > 0:10:38And the wallpaper and the carpets and the gas fires.

0:10:38 > 0:10:40- It's a bit of a long list there. - Yeah, basically, everything.

0:10:40 > 0:10:42This property is one of those that you walk in

0:10:42 > 0:10:44and it's absolutely rammed full of stuff.

0:10:44 > 0:10:47Tell me what do you think and what you're going to do here.

0:10:47 > 0:10:49We'll get a new kitchen and a new bathroom.

0:10:49 > 0:10:52Probably need rewiring.

0:10:52 > 0:10:55We probably... Haven't even found the boiler yet.

0:10:55 > 0:10:57But once we've found the boiler,

0:10:57 > 0:11:00I guess we'll probably have to remove it and replace it.

0:11:00 > 0:11:04The windows on the front are a lovely period feature,

0:11:04 > 0:11:06but I guess they'll probably have to go as well.

0:11:06 > 0:11:10I know. It's a shame cos they've got the beautiful, lovely glass in them.

0:11:10 > 0:11:13It's such a shame to get rid of them but they're not going to do the job

0:11:13 > 0:11:16that you require them to do at this stage, because they're quite old.

0:11:16 > 0:11:17- That's right.- Yes.

0:11:17 > 0:11:20In my mind, the kitchen is a little bit on the small side.

0:11:20 > 0:11:22Have you thought about how you could change that?

0:11:22 > 0:11:26Perhaps by knocking the wall down and having an open-plan

0:11:26 > 0:11:27living/kitchen area.

0:11:27 > 0:11:31Yes, I think we are going to knock through between the kitchen

0:11:31 > 0:11:35and the dining room and make a large kitchen/diner.

0:11:35 > 0:11:39Because I think that's more attractive to tenants these days.

0:11:39 > 0:11:42I'm glad they agree and want to open out that kitchen.

0:11:42 > 0:11:45And even though they only want to rent it for the time being,

0:11:45 > 0:11:48when it's time to sell on - as is the plan eventually -

0:11:48 > 0:11:50this would make it much easier.

0:11:50 > 0:11:53There's a lot to do here and it's going to need a pretty

0:11:53 > 0:11:56substantial budget to cover all the work.

0:11:56 > 0:12:01I guess, including windows, doors, electrics, gas and everything,

0:12:01 > 0:12:03probably about 20,000.

0:12:03 > 0:12:05- OK, so 20,000 maximum?- Yeah.

0:12:05 > 0:12:06I mean, there is a lot you can do here.

0:12:06 > 0:12:08You could extend. You could go up into the loft.

0:12:08 > 0:12:11But are you feeling you might need to work within

0:12:11 > 0:12:12the footprint of the building?

0:12:12 > 0:12:14Yeah. I don't think...

0:12:14 > 0:12:16In the buy-to-let framework,

0:12:16 > 0:12:19I don't think it's worth doing an extension really.

0:12:19 > 0:12:23Cos I don't think it would add enough value, rental value,

0:12:23 > 0:12:24to make it worthwhile.

0:12:24 > 0:12:26How long do you think it's going to take you

0:12:26 > 0:12:28to get this project complete?

0:12:28 > 0:12:30I would like to have it done within about six weeks,

0:12:30 > 0:12:33if possible. So that we can get it rented out.

0:12:33 > 0:12:37Wow, that is a quick turnaround for the level of work required here.

0:12:37 > 0:12:39I hope their builder is up to the task.

0:12:39 > 0:12:41They could also call on the help of their son, Jimmy,

0:12:41 > 0:12:45who I'm sure will be looking into getting his hands dirty.

0:12:45 > 0:12:47I think he will come and clean with us.

0:12:47 > 0:12:50He will help us to clean and clear the clutter.

0:12:50 > 0:12:53Yeah, just the design ideas. He's got some good ideas.

0:12:53 > 0:12:57Imagination is clearly required here. As are some deep pockets.

0:12:57 > 0:12:59I'm worried about that budget.

0:12:59 > 0:13:02It's going to be a challenge, I think,

0:13:02 > 0:13:04to be able to keep within the budget.

0:13:04 > 0:13:06And who's the one that will be knuckling down,

0:13:06 > 0:13:08making sure all the pennies come in?

0:13:08 > 0:13:11- Andrew.- Is it you, Andrew? - Yeah, yeah.

0:13:11 > 0:13:13I haven't actually got the money at the moment.

0:13:13 > 0:13:16- He hasn't even got the pennies! - It will come in.

0:13:16 > 0:13:18I'm hoping, with my dance-wear business,

0:13:18 > 0:13:21the belly dance stuff, there will be a bump this year.

0:13:21 > 0:13:24Wow. So it's all about the belly dancing outfits?

0:13:24 > 0:13:27- Yeah.- I'm really excited to see the outcome of this property.

0:13:27 > 0:13:29I hope you stick to that £20,000 budget.

0:13:29 > 0:13:32- Thank you.- Good luck.- Thank you. - Thank you. Lovely to meet you both.

0:13:32 > 0:13:34Thank you so much. Lovely to meet you.

0:13:35 > 0:13:38So, Lale and Andrew took a huge risk

0:13:38 > 0:13:41and didn't even see inside the property before the auction.

0:13:41 > 0:13:44Let's just hope Andrew's business thrives so they can fund

0:13:44 > 0:13:47the works now they've seen what they've got to contend with

0:13:47 > 0:13:50and it doesn't all go belly up. How will they get on?

0:13:50 > 0:13:53Join me later on in the programme and you can find out.

0:13:58 > 0:14:02Basford in Nottingham is only a 15-minute tram journey

0:14:02 > 0:14:04to the city centre.

0:14:04 > 0:14:08It's split up into two areas - Old and New Basford.

0:14:08 > 0:14:10And that theme continues on this street.

0:14:13 > 0:14:15As I'm walking up here,

0:14:15 > 0:14:18I can't help thinking that this is a street of two halves.

0:14:18 > 0:14:20One half has got original terraced houses.

0:14:20 > 0:14:23And on the other side, there's more modern houses.

0:14:23 > 0:14:24What they've both got going for them

0:14:24 > 0:14:27is that there's a tram stop just at the bottom there.

0:14:27 > 0:14:31That will get them into the centre of Nottingham in no time at all.

0:14:31 > 0:14:33The house I'm here to see is this.

0:14:33 > 0:14:37It's got three bedrooms and a guide price of £60,000-plus.

0:14:37 > 0:14:39Let's get inside and have a look.

0:14:44 > 0:14:48OK, straight off the street into the front room.

0:14:48 > 0:14:50Some old-fashioned wallpaper there with flowers on.

0:14:50 > 0:14:53And an old-fashioned gas fire.

0:14:53 > 0:14:56Some really nice hardwood flooring here as well.

0:14:56 > 0:14:59It's nice and bright. I do like it.

0:14:59 > 0:15:03Straight through. Small corridor. What have we got here?

0:15:04 > 0:15:07Storage in there with a few hangers for your coats.

0:15:07 > 0:15:10Nice, big storage space there.

0:15:10 > 0:15:12OK, and this would have been the kitchen,

0:15:12 > 0:15:14judging by where the sink is.

0:15:14 > 0:15:18And right at the end of the property, there's the bathroom.

0:15:18 > 0:15:20And it's a good-sized bathroom as well.

0:15:20 > 0:15:23It may need updating, just to freshen that up.

0:15:23 > 0:15:27But in here was definitely the kitchen/dining area.

0:15:27 > 0:15:30It's not that at the moment cos there's neither kitchen nor

0:15:30 > 0:15:31dining room in here.

0:15:31 > 0:15:34But spend a bit of time in here, spend a bit of money,

0:15:34 > 0:15:36it could be a really nice family area.

0:15:36 > 0:15:40Talking of money, if you need a mortgage to buy this property,

0:15:40 > 0:15:42you might find it tricky.

0:15:42 > 0:15:46Most lenders' criteria demand that a house be structurally sound,

0:15:46 > 0:15:49insurable, and have a working kitchen.

0:15:49 > 0:15:51We definitely don't have that here.

0:15:51 > 0:15:55And remember, it's not just you who has to qualify for the mortgage,

0:15:55 > 0:15:57it's the property as well.

0:15:57 > 0:16:01Upstairs, we've got two bedrooms on either side of the stairs.

0:16:01 > 0:16:05Front bedroom here in a nice, bright pink with some textured

0:16:05 > 0:16:08wallpaper, which would have to come off. Just brighten it up.

0:16:08 > 0:16:10New flooring in here as well. Nice, new carpet.

0:16:10 > 0:16:13And on the other side, which is the back of the house, again,

0:16:13 > 0:16:15more textured wallpaper.

0:16:15 > 0:16:18And you'd want to put a nice, soft carpet there as well.

0:16:18 > 0:16:20What I haven't shown you is this.

0:16:22 > 0:16:25That's right. There's a third floor.

0:16:25 > 0:16:30A word of caution, though. This house is described as a three-bed.

0:16:30 > 0:16:34But I would want to check out this space meets building regulations.

0:16:34 > 0:16:40You need to make sure of this before it can qualify as a third bedroom.

0:16:40 > 0:16:41One thing, though.

0:16:41 > 0:16:43If you're stuck up here in the middle of the night

0:16:43 > 0:16:45and you want to go to the toilet...

0:16:45 > 0:16:48# It's a long way down

0:16:48 > 0:16:51# It's a long way down... #

0:16:55 > 0:16:58We've asked along a local estate agent to get her opinion.

0:17:00 > 0:17:04I think that the house could do with an additional bathroom

0:17:04 > 0:17:06on the first floor,

0:17:06 > 0:17:09as it is a family property.

0:17:09 > 0:17:14However, the bathroom is quite a nice size downstairs.

0:17:16 > 0:17:19I agree. A bathroom upstairs would be nice.

0:17:19 > 0:17:22But it's hard to see where it could go without sacrificing a bedroom.

0:17:22 > 0:17:26What else would be worth doing to this house, guided at £60,000?

0:17:28 > 0:17:32I would recommend to redecorate the property throughout.

0:17:32 > 0:17:36Fit a new kitchen and new bathroom.

0:17:36 > 0:17:39This is a good rental area and the agent thinks this place could

0:17:39 > 0:17:43fetch around £525 per calendar month.

0:17:43 > 0:17:45But what about sales?

0:17:45 > 0:17:50The sales market of this property would be around £85,000.

0:17:51 > 0:17:54That is a good, solid house in a good location.

0:17:54 > 0:17:56It does need a total overhaul

0:17:56 > 0:17:59and I would have liked to have seen a bathroom on that first floor.

0:17:59 > 0:18:01But that's a decision for whoever buys it.

0:18:01 > 0:18:03Let's go to the auction house and find out who that was

0:18:03 > 0:18:05when it went under the hammer.

0:18:05 > 0:18:08A large, three-storied, three-bedroom townhouse.

0:18:08 > 0:18:10Start me where you like with this one.

0:18:10 > 0:18:11I'll take 50. Thank you.

0:18:11 > 0:18:14A starting bid at £50,000.

0:18:14 > 0:18:15At £50,000.

0:18:15 > 0:18:1751 somewhere?

0:18:17 > 0:18:2051? 51 is bid. At 51.

0:18:20 > 0:18:2152.

0:18:21 > 0:18:23At 52,000. 53?

0:18:23 > 0:18:27After a slow start, we rejoin the bidding at £57,000.

0:18:27 > 0:18:2957.

0:18:29 > 0:18:32At 57. 500? 500.

0:18:32 > 0:18:3358?

0:18:33 > 0:18:35Sure?

0:18:35 > 0:18:3857,500 for the first time.

0:18:38 > 0:18:39Second time.

0:18:39 > 0:18:41Third time. 58.

0:18:41 > 0:18:4358.5, sir?

0:18:43 > 0:18:4558.5.

0:18:45 > 0:18:4759.

0:18:47 > 0:18:4859.

0:18:48 > 0:18:5059.5?

0:18:50 > 0:18:54500. 60 for you? 60,000.

0:18:54 > 0:18:55At 60. 500?

0:18:57 > 0:18:59500.

0:18:59 > 0:19:0061.

0:19:00 > 0:19:02At 61,000. Is that it?

0:19:03 > 0:19:05£61,000.

0:19:05 > 0:19:06Going once.

0:19:06 > 0:19:08Going twice.

0:19:08 > 0:19:09Third time.

0:19:09 > 0:19:12Sold here at 61,000. Thank you.

0:19:12 > 0:19:16With the successful bid of £61,000 was social worker Maria.

0:19:16 > 0:19:19She bought the place with her partner, Wayne.

0:19:19 > 0:19:22And I'm keen to find out what attracted her to this house.

0:19:22 > 0:19:25- Maria, nice to meet you. - Nice to meet you, Dion.

0:19:25 > 0:19:27- Congratulations.- Thank you.

0:19:27 > 0:19:29Tell me what made you buy this house.

0:19:29 > 0:19:31Well, I was buying a house nearby.

0:19:31 > 0:19:36It fell through because it had rising damp.

0:19:36 > 0:19:37So I had two days to buy a house

0:19:37 > 0:19:39before my mortgage application ran out.

0:19:39 > 0:19:42I went to the auction and I bought this house.

0:19:42 > 0:19:44It was very quick decision. It was a big risk.

0:19:44 > 0:19:46HE LAUGHS

0:19:46 > 0:19:48And hopefully, it will pay off.

0:19:48 > 0:19:51What made you, first and foremost, go into property developing?

0:19:51 > 0:19:55- Recently, my partner had a health issue.- Mm.

0:19:55 > 0:19:58And it made us look at life differently.

0:19:58 > 0:20:01And think that, you know, we want to spend more time with the children.

0:20:01 > 0:20:04We want to do something positive and constructive.

0:20:04 > 0:20:07We had some savings and we thought, you know,

0:20:07 > 0:20:10I had to take some time off work to look after him.

0:20:10 > 0:20:14So that's when I was watching Homes Under The Hammer every day.

0:20:14 > 0:20:16That's when I was researching buy-to-let mortgages.

0:20:16 > 0:20:20So it's something that we talked about for quite a while.

0:20:20 > 0:20:22But because of his health issues, I think

0:20:22 > 0:20:24it made us think about it more seriously.

0:20:24 > 0:20:26- Of course.- And we thought, "Yeah, we'll do it."

0:20:26 > 0:20:29Maria and Wayne have obviously had a tough time of it.

0:20:29 > 0:20:30And I wish them well.

0:20:30 > 0:20:33But since Maria is such a big fan of Homes Under The Hammer,

0:20:33 > 0:20:37she'll know our mantra off by heart. Won't she?

0:20:37 > 0:20:40I know the golden rule is you've got to see the house before you buy it.

0:20:40 > 0:20:43- Correct. Correct. Good work.- And you've got to read the legal pack.

0:20:43 > 0:20:45Exactly. Did you do either?

0:20:45 > 0:20:46I didn't do any of those things.

0:20:46 > 0:20:49We came to see the house the next day, and I was like,

0:20:49 > 0:20:50"Oh, no, what have I done?"

0:20:52 > 0:20:55# Regrets, regrets

0:20:57 > 0:21:00# Regrets, regrets... #

0:21:00 > 0:21:02To make matters worse, the bank refused to lend Maria

0:21:02 > 0:21:06and Wayne the money to purchase the house due to its poor condition.

0:21:06 > 0:21:10Their only option was to take out an expensive short-term bridging loan

0:21:10 > 0:21:13in order to secure the house.

0:21:13 > 0:21:15Hopefully, once the work is complete,

0:21:15 > 0:21:18they can remortgage and pay this off.

0:21:18 > 0:21:21They will also need to get some cash together

0:21:21 > 0:21:23to pay for the improvements.

0:21:23 > 0:21:26How much have they got to get this place in shape?

0:21:27 > 0:21:32Well, the original budget was £5,000 with £1,000 contingency.

0:21:32 > 0:21:35- OK.- But now, when we've been speaking to people,

0:21:35 > 0:21:38other people that have had a look at the house and given us quotes,

0:21:38 > 0:21:41they're saying that we're looking at probably seven to eight.

0:21:41 > 0:21:44- Any contingency after that or is that everything?- No, that's it.

0:21:44 > 0:21:47We've got no contingency after that. And that is pushing it.

0:21:47 > 0:21:50We know that the windows and doors are going to be the most expensive.

0:21:50 > 0:21:54Basically, the house needs renovating from top to bottom.

0:21:54 > 0:21:57We're going to have to get a new kitchen, a new bathroom,

0:21:57 > 0:21:59new windows and doors.

0:21:59 > 0:22:03And I've been researching where's the cheapest place to get them.

0:22:03 > 0:22:06- Cos we obviously don't want to do it to a really high standard.- OK.

0:22:06 > 0:22:09So we just want to try and keep our costs down to as low as possible.

0:22:09 > 0:22:12Has Wayne got a say in this as well or is it just...?

0:22:12 > 0:22:15Well, he wants to do everything to a high standard.

0:22:15 > 0:22:18- OK.- And he wants to spend an absolute fortune.

0:22:18 > 0:22:19I'm like cheap as chips.

0:22:19 > 0:22:21I want to do it as cheap as possible

0:22:21 > 0:22:23and spend as little money as possible.

0:22:23 > 0:22:26But that's where we've got conflicting views at the moment.

0:22:26 > 0:22:29- Do you? - It's causing a lot of arguments.

0:22:29 > 0:22:30Great(!)

0:22:30 > 0:22:33That's a great place to start a property-developing partnership.

0:22:33 > 0:22:36So I'm like, "Are we sure we really want to do this?"

0:22:36 > 0:22:39Cos it has caused a lot of stress and arguments and stuff.

0:22:39 > 0:22:42But we'll get there in the end. We'll just reach a middle ground.

0:22:42 > 0:22:45A middle ground is the right answer.

0:22:45 > 0:22:47Because they plan to rent out,

0:22:47 > 0:22:50they don't want to overspend on fixtures and fittings.

0:22:50 > 0:22:53Although, I do think it's good practice to

0:22:53 > 0:22:56give your tenants as good a finish as you can afford.

0:22:56 > 0:22:59Happy tenants tend to rent for longer.

0:22:59 > 0:23:03Standard of finish isn't the only area for a good old barney.

0:23:03 > 0:23:04Who's going to do the work?

0:23:04 > 0:23:07Well, I'm going to try and do a little bit of work.

0:23:07 > 0:23:09Because I've just started a construction course.

0:23:09 > 0:23:14- I started that at a local college. - OK.- And you can pick three trades.

0:23:14 > 0:23:17- So I've picked carpentry and joinery.- Yes.

0:23:17 > 0:23:19- Painting and decorating.- Yes.

0:23:19 > 0:23:21- And tiling.- Tiling?- Yes.

0:23:21 > 0:23:23- That's a hard skill.- It is.

0:23:23 > 0:23:25- So I want to try and do some of the work myself.- Of course.

0:23:25 > 0:23:28But my partner's saying he wants to get proper people in

0:23:28 > 0:23:31and he wants to have a proper job. If I start tiling the tiles,

0:23:31 > 0:23:33they'll probably end up falling off the wall.

0:23:33 > 0:23:34HE LAUGHS

0:23:34 > 0:23:38Wayne's not sounding like he's got a lot of confidence in his missus.

0:23:38 > 0:23:40He's got no confidence in me whatsoever.

0:23:40 > 0:23:41But I'll prove him wrong.

0:23:43 > 0:23:48# I'm going to prove myself true to you somehow

0:23:48 > 0:23:51# Have faith Have faith... #

0:23:51 > 0:23:55Maria and Wayne's son, Kiel, is along to give support.

0:23:55 > 0:23:57And I've no doubt he believes his mum

0:23:57 > 0:24:00and dad have what it takes to turn this house around.

0:24:02 > 0:24:05So we've got three months to basically do the work

0:24:05 > 0:24:07and remortgage the house.

0:24:07 > 0:24:10OK. So is there penalties after that?

0:24:10 > 0:24:14Basically, what will happen is, the monthly payments will double.

0:24:14 > 0:24:18So that's why we have to keep everything as tight as possible.

0:24:18 > 0:24:22And meet deadlines. We do have a lot of pressure.

0:24:22 > 0:24:25So I think it's best we leave you alone as soon as possible.

0:24:25 > 0:24:26So you can get on with the work.

0:24:26 > 0:24:29As soon as you've gone, that's when we're going to start doing the work.

0:24:29 > 0:24:32All the things that we've ordered are coming tomorrow.

0:24:32 > 0:24:34From tomorrow, that's when we're going to be on it.

0:24:34 > 0:24:37All the stuff is going to be delivered, and that's

0:24:37 > 0:24:39when we're going to start doing the work.

0:24:39 > 0:24:41- Good on you. Positive thinking. I like it.- Yes.- Good for you.

0:24:41 > 0:24:44I hope everything works out for you and your partner as well.

0:24:44 > 0:24:47- Thank you.- Good luck. Wish you all the best.

0:24:48 > 0:24:52This is Maria's first venture into the property developing world.

0:24:52 > 0:24:54I do like the fact that she's trying to learn

0:24:54 > 0:24:56the skills in order for her to do the job.

0:24:56 > 0:24:59But my main concern is that timescale.

0:24:59 > 0:25:00Will she get this project finished

0:25:00 > 0:25:03before those repayments start to double?

0:25:03 > 0:25:06You can find out how she gets on later in the programme.

0:25:06 > 0:25:07Coming up...

0:25:07 > 0:25:11Although I'm in idyllic Cornwall and this house seems like a bargain,

0:25:11 > 0:25:13I'm not optimistic.

0:25:13 > 0:25:15But there's got to be something wrong.

0:25:18 > 0:25:22And in Basford, Maria was hoping her DIY courses would help.

0:25:22 > 0:25:24What could go wrong?

0:25:24 > 0:25:26I dropped out after a few weeks.

0:25:30 > 0:25:34We're back in Welling, in the London borough of Bexley, to see

0:25:34 > 0:25:37this three-bedroom detached property which had some characterful,

0:25:37 > 0:25:40pretty windows. Pretty rotten, that is.

0:25:40 > 0:25:43And things, well, they weren't much better inside.

0:25:43 > 0:25:47I mean, it's bad enough out the front, let alone... Look!

0:25:47 > 0:25:50I mean, that is wet to the touch. There's lots going on under there.

0:25:50 > 0:25:53Yes, there was lots going on in the rest of the house too.

0:25:53 > 0:25:56Blown plaster, polystyrene tiles

0:25:56 > 0:25:59and a cramped kitchen were some of the other issues here.

0:25:59 > 0:26:02Andrew and Lale weren't put off by the state of this house,

0:26:02 > 0:26:04because they didn't see it first.

0:26:04 > 0:26:09Tut-tut. They paid £298,000 for it

0:26:09 > 0:26:11and planned to rent it out in the short term.

0:26:11 > 0:26:14I know they have developing experience, but was there

0:26:14 > 0:26:18a chance Andrew was underestimating the level of work that was needed?

0:26:18 > 0:26:23I think it's cosmetic, most of it. Apart from the wiring and the gas.

0:26:23 > 0:26:27- And the windows and the doors. - And the polystyrene tiles.- Yes.

0:26:27 > 0:26:29And the wallpaper and the carpet.

0:26:29 > 0:26:32Yes, it was quite the list to be getting on with.

0:26:32 > 0:26:35And originally, Andrew hoped to get the work done in about six weeks.

0:26:35 > 0:26:39Three months later, those rotten, old windows have gone.

0:26:39 > 0:26:41And with some rendering and a paint job,

0:26:41 > 0:26:45the house can now sit proudly with the others in the street.

0:26:45 > 0:26:49But what's happened with that small, pokey, little kitchen?

0:27:02 > 0:27:05Yes, that's just what I had in mind.

0:27:05 > 0:27:07This is a much better use of the space.

0:27:07 > 0:27:11A new fully-fitted kitchen with additional breakfast bar,

0:27:11 > 0:27:12all with easy access to the garden

0:27:12 > 0:27:15thanks to some new double doors.

0:27:15 > 0:27:18This whole property has been stripped back to the brick,

0:27:18 > 0:27:21getting rid of the damaged plaster and old polystyrene tiles.

0:27:25 > 0:27:28That tired, old bathroom has had a total refit.

0:27:28 > 0:27:29It's now fresh and clean.

0:27:38 > 0:27:41I did say you have to look past other people's stuff

0:27:41 > 0:27:43when you're viewing a property.

0:27:43 > 0:27:46These neutral colours will really help a prospective renter or

0:27:46 > 0:27:48buyer to imagine their own stuff in the property.

0:27:52 > 0:27:56Time now for Andrew to explain how they went about tackling this

0:27:56 > 0:27:59very tired, old house.

0:27:59 > 0:28:01As you can see, we've knocked through

0:28:01 > 0:28:06between the old, original kitchen and this second reception room

0:28:06 > 0:28:08to make a large kitchen/diner.

0:28:08 > 0:28:13There used to be a door there, which we've blocked off.

0:28:13 > 0:28:15So now we're just using this doorway to gain entrance.

0:28:15 > 0:28:19We had to actually keep this beam here,

0:28:19 > 0:28:21because it's a supporting structure.

0:28:21 > 0:28:24So we incorporated it into a breakfast bar

0:28:24 > 0:28:27by accident. But I think it's actually worked.

0:28:27 > 0:28:31But it's no accident that we're here eight weeks later than planned.

0:28:31 > 0:28:33Why the delay?

0:28:33 > 0:28:36There has been basically a full house of issues.

0:28:36 > 0:28:40I was hoping that one or two things wouldn't need to be done.

0:28:40 > 0:28:43But, in fact, everything needed to be done.

0:28:43 > 0:28:45Oh, dear. I can't say I'm surprised.

0:28:45 > 0:28:48I was a bit concerned about Andrew's timescale and budget.

0:28:48 > 0:28:50So has he managed to stick to that?

0:28:50 > 0:28:54Mm. It's been a little bit more expensive than

0:28:54 > 0:28:56we thought it would be.

0:28:56 > 0:29:00Originally, we did say a budget of around £20,000.

0:29:00 > 0:29:05But it's been more like £30,000. Unfortunately.

0:29:05 > 0:29:07To be honest, I haven't actually

0:29:07 > 0:29:10been keeping proper track of the budget.

0:29:10 > 0:29:16So I'm saying £30,000, but hopefully I didn't go beyond that.

0:29:16 > 0:29:18Who knows?

0:29:18 > 0:29:20Who knows?! Andrew! You need to know.

0:29:20 > 0:29:22You are naughty.

0:29:22 > 0:29:25Especially since you said you didn't have any pennies.

0:29:25 > 0:29:28Thankfully, he's delighted his business selling Turkish textiles

0:29:28 > 0:29:30and goods has been doing rather well.

0:29:30 > 0:29:34So they have been able to get the refurbishment funds together.

0:29:34 > 0:29:37Lale has more or less left Andrew to it.

0:29:37 > 0:29:42He dealt with everything. He project managed everything.

0:29:42 > 0:29:43He works very hard with his job.

0:29:43 > 0:29:47And also, he managed to fit this project in.

0:29:47 > 0:29:48He did really well.

0:29:48 > 0:29:50I'm really proud of him.

0:29:50 > 0:29:51Yes, Andrew has done well.

0:29:51 > 0:29:55But he's also got to share some of the credit with his son, Jimmy.

0:29:55 > 0:29:58Well, I remember when the counter, the kitchen counter...

0:29:58 > 0:30:01I decided to go for like a darker colour.

0:30:01 > 0:30:02They wanted to go for a lighter one.

0:30:02 > 0:30:07But most of the room they wanted to go with white and maybe grey,

0:30:07 > 0:30:10but I thought putting a little bit of black maybe would have

0:30:10 > 0:30:12made it look a bit better.

0:30:12 > 0:30:15Looks like Jimmy can teach us a thing or two about design.

0:30:18 > 0:30:22The main problem with this project has been that we spent too

0:30:22 > 0:30:27much money on the initial purchase of the property.

0:30:27 > 0:30:30Plus the renovations that we needed to do.

0:30:30 > 0:30:35So I don't really think that we're going to generate much profit.

0:30:36 > 0:30:39This is where I bang on again about the importance of viewing

0:30:39 > 0:30:43a property before you bid in the auction room.

0:30:43 > 0:30:44However, Andrew and Lale

0:30:44 > 0:30:46have done a nice job.

0:30:46 > 0:30:49So hopefully, they can make something

0:30:49 > 0:30:51from the £328,000 investment.

0:30:51 > 0:30:55We asked two local agents to come along and tell us if that's likely.

0:30:55 > 0:30:56The main selling points

0:30:56 > 0:30:59of the property are that it's a blank canvas.

0:30:59 > 0:31:01So the buyer can move straight in.

0:31:01 > 0:31:04Nothing to do. It's got a nice, large garden.

0:31:04 > 0:31:06And a spacious kitchen/diner.

0:31:06 > 0:31:10Largely, a lot of people would extend the property to gain

0:31:10 > 0:31:12a bigger kitchen/diner.

0:31:12 > 0:31:16They've knocked down the kitchen between the second reception area,

0:31:16 > 0:31:18giving a kitchen/diner aspect.

0:31:18 > 0:31:20Saves a lot of money having to extend the property

0:31:20 > 0:31:22and gives the aspect of what everyone desires.

0:31:22 > 0:31:27The couple hope to rent initially, but with £328,000 invested

0:31:27 > 0:31:31in this property, are they right to be worried that they've overspent?

0:31:31 > 0:31:32What could it sell for?

0:31:32 > 0:31:33In the current market,

0:31:33 > 0:31:38I would estimate the price would be in the region of £380,000.

0:31:38 > 0:31:41For rental, I believe the property would rent for

0:31:41 > 0:31:44approximately £1,400 per calendar month.

0:31:44 > 0:31:50I believe you could achieve 380 to £385,000 on the sales market.

0:31:50 > 0:31:51And for rental,

0:31:51 > 0:31:55I believe you'd be able to achieve £1,300 per calendar month.

0:31:55 > 0:31:58That top figure of £1,400 per month would give them

0:31:58 > 0:32:01a yield of around 5%. And the profit,

0:32:01 > 0:32:06if they sold for £385,000, would be a handsome 57 grand,

0:32:06 > 0:32:08minus the usual taxes and expenses.

0:32:08 > 0:32:11So I'm guessing a sigh of relief?

0:32:11 > 0:32:15That's really good. It's a bit more than we were expecting. So, yeah.

0:32:15 > 0:32:17That's been a good result.

0:32:17 > 0:32:21Yes, it's very good. Yes. We were expecting under those values.

0:32:22 > 0:32:24Could you be tempted to sell now?

0:32:24 > 0:32:27Selling is more of an option now that the valuation has

0:32:27 > 0:32:30come in higher. But I think that wouldn't really fit in with

0:32:30 > 0:32:34our plans because, long term, we're hoping it will gain more

0:32:34 > 0:32:35in about three or four years' time.

0:32:35 > 0:32:37That's when we'll think about selling.

0:32:41 > 0:32:44Callington is a small town in south east Cornwall.

0:32:44 > 0:32:47It's formerly a busy mining area,

0:32:47 > 0:32:51but it's now more known for farming, tourism and one other thing.

0:32:51 > 0:32:55It has a unique feature that no other town in Cornwall has -

0:32:55 > 0:33:01a mural trail, which I think really paints a nice picture of the town.

0:33:01 > 0:33:04The property I'm here to see is just ten minutes' walk

0:33:04 > 0:33:06from the centre of Callington.

0:33:06 > 0:33:10But the fact that it's on a fairly busy main road

0:33:10 > 0:33:14and right next to a garage is going to put a few people off.

0:33:14 > 0:33:21But that still doesn't explain why the guide price of £85,000

0:33:21 > 0:33:27was £200,000 less than the average cost of a detached property

0:33:27 > 0:33:29round here. I need to investigate.

0:33:31 > 0:33:37# Oh, I'm looking for clues... #

0:33:40 > 0:33:44So, at that price, I am expecting a complete wreck.

0:33:46 > 0:33:49No. Doesn't look too bad.

0:33:49 > 0:33:53You've got a front living room area there.

0:33:53 > 0:33:58It's very tired and dated and of its era. But we've got double glazing.

0:33:58 > 0:34:01Another bay-fronted living area there.

0:34:01 > 0:34:05Steps up to your bedrooms. I mean, it's freezing cold.

0:34:05 > 0:34:08But it doesn't smell particularly damp or look particularly damp.

0:34:08 > 0:34:11Into the kitchen here. We haven't got much of a kitchen.

0:34:11 > 0:34:13Just got a sink.

0:34:13 > 0:34:14Um...

0:34:14 > 0:34:18Electrics look like they're fairly old. But...

0:34:18 > 0:34:21nothing that sets my complete alarm bells ringing.

0:34:21 > 0:34:23But there's got to be something wrong.

0:34:23 > 0:34:26# You've got to dig a little deeper

0:34:26 > 0:34:28# Dig a little deeper... #

0:34:28 > 0:34:32Upstairs are three bedrooms, a separate loo and bathroom.

0:34:35 > 0:34:40Yes, it needs modernising, but my alarm is still not ringing.

0:34:40 > 0:34:43Hmm. There's clearly something else wrong here.

0:34:43 > 0:34:46I'll have to do some digging to get to the bottom of this.

0:34:48 > 0:34:51OK, so what is the problem?

0:34:51 > 0:34:57Well, Callington's mining history should give you a bit of a clue.

0:34:57 > 0:35:03Because this house is at least partly built of mundic block.

0:35:03 > 0:35:07Now, between 1900 and 1950, a lot of houses were actually

0:35:07 > 0:35:10built of blocks made partly from mining waste.

0:35:10 > 0:35:12That contains aggregates which,

0:35:12 > 0:35:16over time, basically destabilise and go all horrible.

0:35:16 > 0:35:19So the result is that houses made of them

0:35:19 > 0:35:21potentially have a serious issue.

0:35:21 > 0:35:23There are different levels of problem.

0:35:23 > 0:35:26And if it's isolated, say, maybe in a chimney stack or something,

0:35:26 > 0:35:28it can actually just be cut out and replaced.

0:35:28 > 0:35:30I am told, however, that the

0:35:30 > 0:35:33mundic block in this particular house is fairly substantial,

0:35:33 > 0:35:38which means that getting finance on it is going to be really tricky.

0:35:38 > 0:35:39Nigh on impossible.

0:35:41 > 0:35:45Yes, the mundic is going to be a stumbling block for anyone

0:35:45 > 0:35:46who isn't a cash buyer.

0:35:46 > 0:35:51And it could cost tens of thousands of pounds to put these issues right.

0:35:51 > 0:35:53But is there a better option?

0:35:53 > 0:35:57So what to do with this unmortgageable house

0:35:57 > 0:35:59on this extremely large plot?

0:35:59 > 0:36:02Well, it doesn't take a rocket scientist to work out

0:36:02 > 0:36:06that they only way to go here really is to knock the place down

0:36:06 > 0:36:07and start again.

0:36:07 > 0:36:10I mean, you've got a really, really good-sized building plot here.

0:36:10 > 0:36:12Great access with the road.

0:36:12 > 0:36:15There's obviously electricity and all your services in place already.

0:36:15 > 0:36:17So that's going to keep your costs down.

0:36:17 > 0:36:19And I think the plot is easily big enough to get maybe

0:36:19 > 0:36:22a pair of semis on here. Or even more.

0:36:22 > 0:36:24You'd have to look into the local market

0:36:24 > 0:36:26to make sure it was worthwhile.

0:36:26 > 0:36:28But you know what, I hate to say it cos

0:36:28 > 0:36:32I hate to see houses knocked down, but in this case, it's got to go.

0:36:32 > 0:36:34Wipe the slate clean. Start again.

0:36:34 > 0:36:38And you could actually be in for some big profits.

0:36:39 > 0:36:42Of course, obtaining planning permissions, demolition

0:36:42 > 0:36:45and building a new house will cost time and money,

0:36:45 > 0:36:47while sorting out the property

0:36:47 > 0:36:50and refurbishing might be the cheaper option.

0:36:50 > 0:36:53We invited an agent along to get his thoughts on this lot.

0:36:53 > 0:36:57If the property was fully repaired and renovated

0:36:57 > 0:37:00and the mundic was all repaired, you'd be looking at a resale value

0:37:00 > 0:37:03of 160 to £170,000.

0:37:03 > 0:37:06That means there could be a profit in just repairing the house.

0:37:06 > 0:37:07But does the agent agree with me

0:37:07 > 0:37:10that starting from scratch is the best thing to do here?

0:37:10 > 0:37:13In my opinion, I think the best use of the site would be to

0:37:13 > 0:37:16demolish the property and put a small development on the site.

0:37:16 > 0:37:19The type of properties I'd like to see built here would be

0:37:19 > 0:37:22two-bedroom semidetached properties. Maybe three-bedroom semidetached.

0:37:22 > 0:37:24Or road closed properties.

0:37:24 > 0:37:27The agent thinks that you might fit six three-bed terraced

0:37:27 > 0:37:29properties on the land.

0:37:29 > 0:37:33And they could bring sales values of roughly £800,000

0:37:33 > 0:37:37and a monthly rental income of £300,000 per calendar month.

0:37:37 > 0:37:41So, if you have the right skills, you can make a handsome profit here.

0:37:43 > 0:37:46Of course, you could look at this in a slightly different way and say -

0:37:46 > 0:37:49for a cash buyer who didn't have to get a mortgage

0:37:49 > 0:37:51and didn't worry about the mundic block,

0:37:51 > 0:37:55this is actually a chance to get a pretty big house for a fraction of

0:37:55 > 0:37:58the cost of something similar which didn't have this one's problems.

0:37:58 > 0:38:02However, I think it's probably suited to a developer.

0:38:02 > 0:38:05So let's see what happened when it went under the hammer.

0:38:08 > 0:38:10OK, lot six.

0:38:10 > 0:38:12Two-storey, three-bed, detached house.

0:38:12 > 0:38:14Shown on the screens here. Guide of 85.

0:38:14 > 0:38:16Somebody like to start me? Lot of interest in this one.

0:38:16 > 0:38:18Somebody like to start me around about 100?

0:38:18 > 0:38:20100 to go?

0:38:20 > 0:38:22Anyone want to start at 100?

0:38:22 > 0:38:2495 will do.

0:38:24 > 0:38:2595 will do.

0:38:25 > 0:38:27Thank you. £95,000 then.

0:38:27 > 0:38:2995. Any advance on 95?

0:38:29 > 0:38:3295 standing. 97.5 somewhere?

0:38:32 > 0:38:35£95,000. 97.5?

0:38:37 > 0:38:40Any advance on £95,000? We're ten over guide.

0:38:40 > 0:38:41£95,000 standing.

0:38:43 > 0:38:45I'm going to call it for the first time at £95,000.

0:38:45 > 0:38:47Standing here.

0:38:47 > 0:38:48That's the first call.

0:38:48 > 0:38:50Second call at £95,000.

0:38:50 > 0:38:51Gentleman scratching his head.

0:38:51 > 0:38:54Second, third and last time at £95,000.

0:38:54 > 0:38:55Are we sure we're all done?

0:38:55 > 0:38:58We are, and we're not going to sell it to you at that level.

0:38:58 > 0:38:59We're very close. So we'll turn on.

0:38:59 > 0:39:03The property failed to make the reserve price at the auction.

0:39:03 > 0:39:07However, negotiations afterwards secure it for John and son,

0:39:07 > 0:39:11Richard, for £103,500.

0:39:11 > 0:39:14I met them back at the house to find out why

0:39:14 > 0:39:16they didn't bid for it on the day.

0:39:16 > 0:39:18John, Richard, great to meet you both.

0:39:18 > 0:39:21- Nice to meet you.- Nice to meet you. - Congratulations.

0:39:21 > 0:39:23So how was the auction?

0:39:23 > 0:39:25Well, we got there rather late.

0:39:26 > 0:39:30We got hung up in traffic and...

0:39:30 > 0:39:31And you missed the auction?

0:39:31 > 0:39:33- Yeah, we missed the auction.- Yeah. THEY LAUGH

0:39:33 > 0:39:37We bid 110 for it, which was accepted,

0:39:37 > 0:39:38the day before.

0:39:38 > 0:39:40But because they didn't get all the paperwork

0:39:40 > 0:39:43and we couldn't get up to Exmouth on time, it went to auction.

0:39:43 > 0:39:46Then we bought it for 103,500.

0:39:46 > 0:39:50- So you saved yourselves £6,500? - That's right.

0:39:50 > 0:39:53Somebody's smiling on you there, aren't they?

0:39:53 > 0:39:55- I think so.- Yeah.- Result.

0:39:55 > 0:39:58- Yeah.- So, tell me, why did you want to buy the house?

0:39:58 > 0:40:00We bought the house really for the plot of land.

0:40:00 > 0:40:03We've put in planning for five two-beds.

0:40:03 > 0:40:04Which is all in a terrace.

0:40:06 > 0:40:09Or we could put two two-beds and two three-beds.

0:40:10 > 0:40:13And we put in for flats.

0:40:13 > 0:40:16You can put as many developments as possible on planning

0:40:16 > 0:40:18and then they'll go for approval that way.

0:40:18 > 0:40:20That's what I call hedging your bets.

0:40:20 > 0:40:24These two have given the planners plenty to think about.

0:40:24 > 0:40:26# Decide, decide

0:40:26 > 0:40:28# Make up your mind

0:40:28 > 0:40:31# Decide, decide. #

0:40:31 > 0:40:35Does it make any difference to you which plan is accepted?

0:40:35 > 0:40:40We'd prefer either the five two-beds or two-bed and two three-beds.

0:40:40 > 0:40:43- Right. Not flats?- No. Well...

0:40:43 > 0:40:44Not really, no.

0:40:44 > 0:40:48I think, more for the area, it would be better as a terrace of houses.

0:40:48 > 0:40:52- Mm.- But it's all down to planning, really.

0:40:52 > 0:40:55As long as one of them goes through, then we're happy, really.

0:40:55 > 0:40:58Have you got any indication really that they're going to

0:40:58 > 0:41:00go for anything? I mean...

0:41:00 > 0:41:03Yeah, before we bought the plot, we had our architect come out

0:41:03 > 0:41:05and have a look around.

0:41:05 > 0:41:09And we had some of the local council people come out.

0:41:09 > 0:41:11They don't see any objection to it.

0:41:11 > 0:41:13It'd improve it really, so.

0:41:13 > 0:41:16There would be more affordable houses in the area

0:41:16 > 0:41:18if we go down the terrace of houses.

0:41:18 > 0:41:21- Right.- That's the demand at the moment, really.

0:41:21 > 0:41:24Right. So tell me about you two. Is this something you do?

0:41:24 > 0:41:30- Yes, I'm in plant hire and groundworks. And...- I'm a builder.

0:41:30 > 0:41:32- Right. Good combination there. - That's right.

0:41:32 > 0:41:35I work with another guy, a carpenter.

0:41:35 > 0:41:38And we really go round as... Well, as a pair.

0:41:38 > 0:41:40And obviously Dad goes in first of all.

0:41:40 > 0:41:43Just two of you plus Dad doing all the groundworks?

0:41:43 > 0:41:45- Yeah.- Really?!- Yeah.

0:41:45 > 0:41:47Wow. But you get electricians in and plumbers...?

0:41:47 > 0:41:49Yeah, electricians and plumbers, obviously.

0:41:49 > 0:41:51Fantastic. Great team.

0:41:53 > 0:41:56And there could be a new addition to the squad,

0:41:56 > 0:41:59as Richard's 12-year-old son, Rhys,

0:41:59 > 0:42:02is also keen to get involved in the building trade.

0:42:02 > 0:42:06Hopefully he will be able to get on the tools,

0:42:06 > 0:42:09get to his piggy bank, and help out with the budget.

0:42:11 > 0:42:17- We've got about 200 to 280,000 to spend on the developments.- Right.

0:42:17 > 0:42:23200 being the cheapest and 280, we don't really want to go over that.

0:42:23 > 0:42:28So, OK. That's... Let's take the middle and say 250 plus about 100.

0:42:28 > 0:42:31So 350-ish. What kind of cost do you think you might be able to get?

0:42:31 > 0:42:34Or what kind of sale price do you think you'll be able to

0:42:34 > 0:42:35get from the finished things?

0:42:35 > 0:42:40- Two-beds - we're looking at anything from 110 to 130.- Ooh.

0:42:40 > 0:42:43The three-bed will be 140 to 160.

0:42:43 > 0:42:47If we'd done the flats, it would be approximately 100 to 110.

0:42:47 > 0:42:51The three three-beds, the detached ones,

0:42:51 > 0:42:54you're looking at probably 150 to 180.

0:42:54 > 0:42:57- So there's probably...- There's a good margin of profit there.

0:42:57 > 0:43:00Yeah, over 200,000 whatever you're going to do.

0:43:00 > 0:43:01- Mm-hmm.- Good.

0:43:01 > 0:43:04- So hopefully...- Worth doing. - ..it'll be worth doing.

0:43:04 > 0:43:08Yes, with a project of this size, it will take some doing indeed.

0:43:08 > 0:43:10How long will it take to complete?

0:43:10 > 0:43:13All down to planning. It's a nine-month project.

0:43:13 > 0:43:17Once we've got approval, it'll be up and finished within nine months.

0:43:17 > 0:43:19- Right.- So hopefully it'll be...

0:43:19 > 0:43:22We've planned that, hopefully, it'll be three months for the planning.

0:43:22 > 0:43:24So it's a 12-month project, really.

0:43:24 > 0:43:27Great. Well, congratulations. And good luck.

0:43:27 > 0:43:29- We can't wait to see how you get on. - Thank you.

0:43:32 > 0:43:36So it's goodbye house, hello new development.

0:43:36 > 0:43:39I think Richard and John have certainly got the experience

0:43:39 > 0:43:42and the right idea with what they're planning here.

0:43:42 > 0:43:46And it'll be fascinating to see what's here when we come back.

0:43:46 > 0:43:47You can find out later in the show.

0:43:51 > 0:43:54Doing up a property can take much longer than you think.

0:43:54 > 0:43:57Well, we saw how one property did, but what about the other two?

0:43:57 > 0:43:58It's time to find out.

0:43:58 > 0:44:03It's time to return to Nottingham and the suburb of Basford.

0:44:03 > 0:44:06Here I saw a pretty tired-looking three-storey terrace.

0:44:06 > 0:44:09The upstairs wasn't great, with no loo.

0:44:09 > 0:44:12And a top floor that didn't look like it complied with building regs.

0:44:12 > 0:44:15But it was downstairs that really bothered me.

0:44:15 > 0:44:19But in here was definitely the kitchen/dining area.

0:44:19 > 0:44:22It's not that at the moment cos there's neither kitchen nor

0:44:22 > 0:44:23a dining room in here.

0:44:23 > 0:44:27Maria and her husband, Wayne, weren't aware of these issues

0:44:27 > 0:44:31because they bought the house for £61,000 without seeing it.

0:44:31 > 0:44:33They then discovered that because of its poor condition,

0:44:33 > 0:44:35they couldn't get a mortgage.

0:44:35 > 0:44:38Instead, they had to take out a bridging loan.

0:44:38 > 0:44:41So they've now found themselves in a race against time.

0:44:41 > 0:44:44We've got three months to basically do the work

0:44:44 > 0:44:46and remortgage the house.

0:44:46 > 0:44:48OK, so is there penalties after that?

0:44:48 > 0:44:52Basically, what will happen is the monthly payments will double.

0:44:52 > 0:44:57So that's why we have to keep everything as tight as possible.

0:44:57 > 0:45:00And meet deadlines. We do have a lot of pressure.

0:45:00 > 0:45:02Three months later,

0:45:02 > 0:45:05we're back to see how Maria dealt with the pressure.

0:45:05 > 0:45:10Pressure can burst your pipes, but can also create diamonds.

0:45:10 > 0:45:13It's deadline time, and we're back.

0:45:13 > 0:45:16- # So shine bright - Shine bright like a diamond

0:45:16 > 0:45:19- # Oh, oh - Shine bright like a diamond

0:45:19 > 0:45:21- # Oh, oh, oh - Shine bright like a diamond

0:45:21 > 0:45:25# We're beautiful Like diamonds in the sky

0:45:25 > 0:45:28- # Shine bright like a diamond - Oh, oh

0:45:28 > 0:45:30- # Shine bright like a diamond - Oh, oh, oh

0:45:30 > 0:45:32# Shine bright like a diamond

0:45:32 > 0:45:35# We're beautiful Like diamonds in the sky... #

0:45:35 > 0:45:37The bathroom sparkles too.

0:45:37 > 0:45:42It's been fully tiled and has a fresh, modern suite.

0:45:42 > 0:45:44The tired, old living room has been transformed

0:45:44 > 0:45:48with a contemporary colour scheme, and hardwood floor restored.

0:45:51 > 0:45:54The other three rooms have also had a makeover.

0:45:59 > 0:46:01Outside, the new rendering

0:46:01 > 0:46:05and painting match the clean look of inside.

0:46:05 > 0:46:08But as this was Maria's first time, it couldn't have been easy.

0:46:08 > 0:46:11Unfortunately, we had a leak in the front room,

0:46:11 > 0:46:13and it came through the ceiling.

0:46:13 > 0:46:18What happened is, the boiler, the pressure was too much for the pipes.

0:46:18 > 0:46:21More pressure, just of a different sort.

0:46:21 > 0:46:23And then there was more bad news.

0:46:23 > 0:46:26We found out that the house didn't have any gas.

0:46:26 > 0:46:29And we had to dig up the pavement, which...

0:46:29 > 0:46:31didn't go very well.

0:46:31 > 0:46:34The other challenge was, we didn't have water for quite a while.

0:46:34 > 0:46:36Cos we couldn't find a stopcock.

0:46:36 > 0:46:39No gas or water. What more could go wrong?

0:46:39 > 0:46:42Also, there was a flood in the garden.

0:46:42 > 0:46:45The drain got blocked. I'm not sure what was down there.

0:46:45 > 0:46:48But the neighbour was knocking on the door

0:46:48 > 0:46:49saying her garden was flooded.

0:46:49 > 0:46:52So we had to get the drain sorted out.

0:46:52 > 0:46:54So it was just one thing after the other.

0:46:54 > 0:46:57In the end, they have a really nice property here.

0:46:57 > 0:46:59The finish looks lovely.

0:46:59 > 0:47:02So I'm guessing those building courses Maria took paid off.

0:47:02 > 0:47:05I dropped out after a few weeks.

0:47:05 > 0:47:07So that all went out of the window.

0:47:07 > 0:47:10So I think the only work that I did,

0:47:10 > 0:47:12I just helped with a bit of painting.

0:47:12 > 0:47:15And I helped strip the wallpaper.

0:47:15 > 0:47:19But everything else, we had friends who were tradespeople.

0:47:19 > 0:47:23Oh, Maria, I can't believe you gave up.

0:47:23 > 0:47:25But it's probably best to take advantage of professionals

0:47:25 > 0:47:27with mates rates.

0:47:27 > 0:47:30The original budget was £8,000.

0:47:30 > 0:47:32So what did they actually spend?

0:47:32 > 0:47:36So the budget now, we've added up all the figures this morning,

0:47:36 > 0:47:41and the budget has gone to £12,300.

0:47:43 > 0:47:46Which is a shock. But...

0:47:46 > 0:47:49you learn from your lessons and mistakes, don't you?

0:47:49 > 0:47:51Maria, don't beat yourself up.

0:47:51 > 0:47:54It looks like you've had some really bad luck.

0:47:54 > 0:47:56But you've done a great job.

0:47:56 > 0:47:58And it's all part of the learning process after all.

0:47:58 > 0:48:01Of course, the biggest financial pressure on this project

0:48:01 > 0:48:05was the prospect of those loan repayments doubling.

0:48:05 > 0:48:07It took just over two months,

0:48:07 > 0:48:09because we had tenants that wanted to move in.

0:48:09 > 0:48:14So the last, I'd say, two weeks was mayhem.

0:48:14 > 0:48:15We had to get everybody on site.

0:48:15 > 0:48:17We had to say, you know, "We've got a deadline."

0:48:17 > 0:48:20And we had to put the tenants off for a week

0:48:20 > 0:48:22because the house wasn't finished,

0:48:22 > 0:48:24which they weren't very happy about,

0:48:24 > 0:48:27because they'd already given notice. So, yeah, it was very rushed.

0:48:27 > 0:48:28And a lot of...

0:48:29 > 0:48:33..shouting and arguing and just stress.

0:48:36 > 0:48:39Well, now a tenant is in and the house is mortgageable,

0:48:39 > 0:48:41all before that three-month deadline.

0:48:41 > 0:48:43Let's hope all that stress has been worth it.

0:48:43 > 0:48:46We've asked two local estate agents around

0:48:46 > 0:48:48for their opinions on the house.

0:48:48 > 0:48:51This is the second time I've visited this property

0:48:51 > 0:48:52and I'm incredibly impressed.

0:48:52 > 0:48:55It's certainly a phoenix that's risen from the ashes.

0:48:55 > 0:48:57It's in very good order.

0:48:57 > 0:48:59It's got a lovely kitchen. Nice bathroom.

0:48:59 > 0:49:02Very bright light. And the standard is very high.

0:49:02 > 0:49:05There's been a lot of attention to detail paid to the finish of the

0:49:05 > 0:49:08property and it's above and beyond some of the standards of

0:49:08 > 0:49:11accommodation in the area, which really makes it stand out.

0:49:11 > 0:49:15Maria is already renting this out and plans to do so long-term.

0:49:15 > 0:49:17However, the sales figures the agents gave

0:49:17 > 0:49:21vary from 90,000 to £105,000,

0:49:21 > 0:49:27which could mean a pre-tax profit of in between 17 and 32 grand.

0:49:27 > 0:49:30That is really good for a first-time developer.

0:49:30 > 0:49:33However, rental is the name of the game here.

0:49:33 > 0:49:35In the estate agents' opinion,

0:49:35 > 0:49:40is she getting the best return for her £73,300 investment?

0:49:43 > 0:49:45For rental, I would anticipate the property

0:49:45 > 0:49:48achieving in the region of £500 per calendar month.

0:49:48 > 0:49:51With regards to placing this property on the rental market,

0:49:51 > 0:49:55you're looking within the region of 500 to £550 per calendar month.

0:49:55 > 0:49:59I think the rental value of 500 was a bit on the low side.

0:49:59 > 0:50:02We've managed to rent it out for 550.

0:50:02 > 0:50:04And we've got really good tenants, really nice tenants,

0:50:04 > 0:50:07and we're really happy with them.

0:50:07 > 0:50:11Maria's rental figures mean a yield of just over 8%,

0:50:11 > 0:50:14so after a reasonable return and a lot of learning under her belt,

0:50:14 > 0:50:17what has she made of the experience?

0:50:18 > 0:50:21The experience was full of highs and lows.

0:50:21 > 0:50:27But I think what you have to do is turn a negative into a positive

0:50:27 > 0:50:29and make the most of what you've got.

0:50:29 > 0:50:31And I think we've managed to achieve that.

0:50:31 > 0:50:33And I'm really pleased with the outcome.

0:50:33 > 0:50:35But it was really stressful.

0:50:35 > 0:50:39And I was constantly telling people what to do and how to do it.

0:50:39 > 0:50:44Some people took offence to it cos I was quite blunt.

0:50:44 > 0:50:47So I just have to try and be nicer to people now,

0:50:47 > 0:50:49if we buy another house, if they want to work for us again.

0:50:49 > 0:50:51Cos I'll probably put them off.

0:50:51 > 0:50:53SHE CHUCKLES

0:50:56 > 0:50:59We're heading back to the picturesque town of Callington,

0:50:59 > 0:51:03in Cornwall, now to see what's happened with this three-bed

0:51:03 > 0:51:08detached house which was guided at what seemed a remarkable £85,000.

0:51:08 > 0:51:11Why was this house a good 200 grand less

0:51:11 > 0:51:14than the average house in this area?

0:51:14 > 0:51:16Well, there was a big stumbling block.

0:51:16 > 0:51:18Mundic block to be exact.

0:51:18 > 0:51:21The house had largely been constructed using concrete

0:51:21 > 0:51:26blocks made using mining waste that can become very unstable,

0:51:26 > 0:51:30which means that getting finance on it is going to be really tricky.

0:51:30 > 0:51:32Nigh on impossible.

0:51:33 > 0:51:37The buyers paying £103,500 for the lot were not in the least bit

0:51:37 > 0:51:39bothered by this issue.

0:51:39 > 0:51:43John and his son, Richard, planned to flatten it and build, well, what?

0:51:43 > 0:51:45Terraces, semis or even flats.

0:51:45 > 0:51:48One thing was certain - they had plenty of options.

0:51:49 > 0:51:54We'd prefer either the five two-beds or the two-bed and two three-beds.

0:51:54 > 0:51:56- Right. Not flats?- Not really, no.

0:51:56 > 0:52:01I think, more for the area, it would be better as a terrace of houses.

0:52:01 > 0:52:04They had three different outline applications in.

0:52:04 > 0:52:07Option one - a row of terraces.

0:52:07 > 0:52:10Option two - some semidetached properties.

0:52:10 > 0:52:12Option three - a block of flats.

0:52:14 > 0:52:18I tell you what, join in and have a guess at which one they got.

0:52:18 > 0:52:21Was it option one, two or three?

0:52:23 > 0:52:25# Can you believe it?

0:52:25 > 0:52:27# I'm down on my knees, yeah

0:52:27 > 0:52:30# Tell me, what can I do? #

0:52:30 > 0:52:34Ah. It's option four - a pair of bungalows.

0:52:34 > 0:52:37Now, if you got that right, then this must be

0:52:37 > 0:52:40a repeat of the programme and you've seen this before.

0:52:40 > 0:52:42Cheater.

0:52:42 > 0:52:45No short cuts were taken when designing these properties, though.

0:52:45 > 0:52:47The front door is set-back from the road

0:52:47 > 0:52:50and the curb has been lowered for easy off-road parking.

0:52:50 > 0:52:53The old plot had a lot of space at the back,

0:52:53 > 0:52:56so both houses have good-size gardens.

0:52:56 > 0:52:59Still, the two bungalows were not part of the original plan.

0:52:59 > 0:53:01So what happened?

0:53:02 > 0:53:08We put planning in for two semis, a terrace of houses, flats,

0:53:08 > 0:53:11which we got recommended by the councillors.

0:53:11 > 0:53:13But in the end, they all got turned down.

0:53:13 > 0:53:15The problem we had with the neighbours is that they

0:53:15 > 0:53:19didn't want anybody overlooking their property, so we could

0:53:19 > 0:53:24only put bungalows in, rather than a two-storey or flats as we intended.

0:53:24 > 0:53:28It took two long years to get planning approved,

0:53:28 > 0:53:30which was double their original timescale,

0:53:30 > 0:53:33even before a single foundation was dug.

0:53:33 > 0:53:37Six months later, the build was complete.

0:53:37 > 0:53:39They are still putting finishing touches on this one,

0:53:39 > 0:53:41but here's one they made earlier.

0:53:45 > 0:53:49This one was finished first and has been lived in for a few months.

0:53:49 > 0:53:51I think it looks lovely.

0:53:51 > 0:53:54It has a nice open-plan kitchen and living area.

0:53:58 > 0:54:01Two good-sized double bedrooms.

0:54:03 > 0:54:05And one practical single.

0:54:08 > 0:54:11The new owners had a choice in the standard of finish.

0:54:11 > 0:54:15I really like the design of the bathroom and especially the kitchen.

0:54:15 > 0:54:18However, getting to this stage was no easy task.

0:54:18 > 0:54:21First, they had to demolish the old house.

0:54:21 > 0:54:25To save money, John did this and the groundworks himself,

0:54:25 > 0:54:26where he ran into a problem.

0:54:29 > 0:54:32When we had the drainage inspected,

0:54:32 > 0:54:36the inspector said they needed different sort of tanks put in.

0:54:36 > 0:54:38So we had to put in a sewage plant.

0:54:38 > 0:54:40The ones that we'd put in we had to take out.

0:54:40 > 0:54:43Then buy another two to put in.

0:54:44 > 0:54:48That near enough doubled the expenditure on that side of it.

0:54:48 > 0:54:50Then it was Richard's turn.

0:54:50 > 0:54:53He and a small team had to make the plans a reality.

0:54:53 > 0:54:57First of all, we dug the foundations, put the blockwork in.

0:54:57 > 0:55:00We decided to go for a joist floor system with insulation underneath.

0:55:00 > 0:55:03Then obviously blockwork and stonework on the outside.

0:55:03 > 0:55:05We had somebody come in to do the plastering.

0:55:05 > 0:55:09But all the other works, me and my friend did all the work.

0:55:09 > 0:55:12And Dad did the driving side, digger side.

0:55:12 > 0:55:13I'm the digger man.

0:55:13 > 0:55:16I'm below ground, then Richard takes over.

0:55:16 > 0:55:18# Can you dig me?

0:55:18 > 0:55:21# Oh, yeah

0:55:21 > 0:55:23# Can you dig me?

0:55:23 > 0:55:25# Oh, yeah... #

0:55:25 > 0:55:29What about Richard's son, Rhys, who we saw back in 2013,

0:55:29 > 0:55:33when he was 12 and was keen to help out?

0:55:33 > 0:55:39Now 15, the passion to be in the family trade is still strong.

0:55:39 > 0:55:42My son came over in the holidays and helped put the fittings in.

0:55:42 > 0:55:44And some of the blockwork outside.

0:55:44 > 0:55:48He was helping me labour, mixing up concrete, everything.

0:55:48 > 0:55:53He's decided when he's older to become a plumber,

0:55:53 > 0:55:56which is another trade in the family for these projects.

0:55:56 > 0:56:01A third generation of the family in the trade, that's great to hear.

0:56:01 > 0:56:04It should also help save some money on bill costs in the future.

0:56:04 > 0:56:07But how much has this one set them back?

0:56:07 > 0:56:11We spent approximately 100,000 on each plot, which was our budget.

0:56:11 > 0:56:17And we were pretty much within 95, 105, depending on the spec.

0:56:17 > 0:56:22John and Richard bought this site for £103,500.

0:56:22 > 0:56:25So add their spend of £200,000 to that,

0:56:25 > 0:56:29and it means each bungalow has cost roughly £150,000.

0:56:29 > 0:56:33Let's see what two local estate agents think of their hard work

0:56:33 > 0:56:35and if there's profit to be made here.

0:56:35 > 0:56:38What they've done is a superb job for what was here previously.

0:56:38 > 0:56:41The finish of property one is absolutely outstanding.

0:56:41 > 0:56:42Really, really good.

0:56:42 > 0:56:44The second property, yet to be finished, but I'm sure,

0:56:44 > 0:56:47looking at the first property, the standard will be just as good.

0:56:47 > 0:56:49First impressions of the layout is

0:56:49 > 0:56:52it's a really wide-open, friendly space, as I would call it.

0:56:52 > 0:56:55The wide sort of hallway area that leads through to the bedrooms

0:56:55 > 0:56:56gives it a massive wow factor.

0:56:56 > 0:57:01The agents think these bungalows could rent for between 750

0:57:01 > 0:57:03and £800 per calendar month.

0:57:03 > 0:57:07That's not a particularly exciting yield of just over 6%.

0:57:07 > 0:57:10But John and Richard always wanted to sell.

0:57:10 > 0:57:14So, will the bungalows make a profit on their total £200,000 cost?

0:57:16 > 0:57:19If I was putting the properties onto the market today, I would

0:57:19 > 0:57:22certainly put both properties on the market at £220,000.

0:57:22 > 0:57:25I think each of these properties will fetch

0:57:25 > 0:57:27somewhere in the region of £200,000.

0:57:27 > 0:57:30That's an average price of £210,000.

0:57:30 > 0:57:35That will land the father and son team a pre-tax profit of 120,000.

0:57:35 > 0:57:38So what do they think of that?

0:57:38 > 0:57:40We were quite happy with the valuations.

0:57:40 > 0:57:43We sold both of them for £210,000 each.

0:57:43 > 0:57:45So, pretty good all-round, really.

0:57:45 > 0:57:47Well, it's been a bit of a slog.

0:57:47 > 0:57:51But with a pre-tax profit of £120,000 in the bank,

0:57:51 > 0:57:54they should be pleased.

0:57:54 > 0:57:56It's been quite an experience, actually.

0:57:56 > 0:57:59We can work together, father and son partnership.

0:57:59 > 0:58:03And yeah, it's been really good.

0:58:07 > 0:58:11Find out what more proud owners did with their new properties next time.

0:58:11 > 0:58:14Yes, make sure you join us for more Homes Under The Hammer.

0:58:14 > 0:58:16- Goodbye.- Bye-bye.- Goodbye.