0:00:02 > 0:00:05Hello and welcome to the show. Now, investing in property is not
0:00:05 > 0:00:07something you should do on a whim.
0:00:07 > 0:00:10You really need to think things through.
0:00:10 > 0:00:12Yeah, there's lots at stake, so don't rush into anything.
0:00:12 > 0:00:15Yeah. You should always do your research, and if you're thorough,
0:00:15 > 0:00:17it can sometimes pay off.
0:00:17 > 0:00:20So why not buy your next home under the hammer?
0:00:46 > 0:00:48It doesn't matter how much research you've done -
0:00:48 > 0:00:51buying a property at auction isn't foolproof.
0:00:51 > 0:00:55It's true. There are no certain things in this business,
0:00:55 > 0:00:57but the more research you do,
0:00:57 > 0:01:00the more likely it is that things will turn out in your favour.
0:01:00 > 0:01:03So, have today's buyers made the right choices?
0:01:03 > 0:01:05Let's find out.
0:01:07 > 0:01:10It's a trip to the east Devon coast for me.
0:01:10 > 0:01:13It's a very desirable place to be, so spend your money here, and I think
0:01:13 > 0:01:15it'll be money well spent.
0:01:16 > 0:01:17Whereas in south Wales,
0:01:17 > 0:01:20I suggest splashing the cash and knocking a few walls down.
0:01:20 > 0:01:26Have one big open space - that's definitely the way to go for me.
0:01:26 > 0:01:29And spend your money on this south London house, and you get a little
0:01:29 > 0:01:30bit of history.
0:01:30 > 0:01:33I love it! Traditional French doors.
0:01:33 > 0:01:36These were here when the house was originally built.
0:01:38 > 0:01:41All these properties have been sold at auction, and we'll find out who
0:01:41 > 0:01:45bought them and what they paid when they went under the hammer.
0:01:45 > 0:01:46Sold.
0:01:49 > 0:01:53This is Budleigh Salterton in east Devon.
0:01:53 > 0:01:57Two miles of glorious pebbly beach,
0:01:57 > 0:02:02a lovely Victorian town centre and not so much commercialism.
0:02:02 > 0:02:05You know, come here on a hot summer's day,
0:02:05 > 0:02:07you wouldn't be fighting for space.
0:02:07 > 0:02:10It really is absolutely charming.
0:02:12 > 0:02:17There are 95 miles of Jurassic Coast to discover and a lovely seaside
0:02:17 > 0:02:21town, but for now, I have a house to find.
0:02:22 > 0:02:25Well, just ten minutes' walk from the beach and you're almost in the
0:02:25 > 0:02:29countryside. It's little lanes, lots of trees,
0:02:29 > 0:02:31a very desirable place to live.
0:02:31 > 0:02:34The property I'm here to see sounds like a very interesting development
0:02:34 > 0:02:37opportunity. I say "development opportunity" straight away because,
0:02:37 > 0:02:40as you can see from the outside, it is looking in a right old state,
0:02:40 > 0:02:44but 150,000 quid was the guide price.
0:02:44 > 0:02:45That's exciting.
0:02:47 > 0:02:50It does look kind of blue from the outside.
0:02:52 > 0:02:55MUSIC: Song Sung Blue by Neil Diamond
0:02:57 > 0:03:00But there is a decent-sized plot here.
0:03:07 > 0:03:12And if you ask me, it's ripe for some blue sky thinking and a plan to reconfigure
0:03:12 > 0:03:15the slightly ramshackle appearance of the place.
0:03:24 > 0:03:29So, through into the property, and immediately a very strange
0:03:29 > 0:03:32layout. You come into this little, sort of covered area here,
0:03:32 > 0:03:33almost like a lean-to.
0:03:33 > 0:03:35There's more outbuildings there.
0:03:35 > 0:03:38Then up some steps into the kitchen,
0:03:38 > 0:03:43it's very small and obviously hasn't been touched in many a year. And you
0:03:43 > 0:03:45carry on through into the lounge area.
0:03:45 > 0:03:47Another little anteroom off there.
0:03:47 > 0:03:50It looks like you've got central heating, which is good.
0:03:50 > 0:03:53What kind of state it's in, I don't know. So, that's it.
0:03:53 > 0:03:56No, it isn't. It continues...
0:03:56 > 0:03:59into this area here, almost like...
0:03:59 > 0:04:02I was going to say it's very long and thin, this end of the property.
0:04:02 > 0:04:07There's a loo there and just... stair...
0:04:07 > 0:04:09What is going on with this place?
0:04:09 > 0:04:12The ground floor just seems to go on
0:04:12 > 0:04:15and on and on.
0:04:19 > 0:04:21There is a lot of space here,
0:04:21 > 0:04:25but it's just a bit too higgledy-piggledy for modern living, and upstairs
0:04:25 > 0:04:27there is one bedroom.
0:04:27 > 0:04:32That's right, just one bedroom and a very generous bathroom.
0:04:32 > 0:04:36It does all feel a bit damp and tired, and without going on about it,
0:04:36 > 0:04:39I'm definitely thinking about redevelopment here.
0:04:42 > 0:04:45It doesn't matter which way you look at it, it doesn't get any better.
0:04:45 > 0:04:46This is crazy, isn't it?
0:04:46 > 0:04:50A one-bedroomed house here and it just doesn't work,
0:04:50 > 0:04:54but the good news is the scope for improvement is huge.
0:04:54 > 0:04:57The garden isn't massive, but there's enough space to do stuff and,
0:04:57 > 0:05:00more importantly, you've got these little outbuildings, so there's already
0:05:00 > 0:05:03a footprint of a property here that's much, much,
0:05:03 > 0:05:07much bigger than the bit of house itself. So what are we thinking?
0:05:07 > 0:05:12Well, knock that lot down and put some really extravagant extension on there.
0:05:12 > 0:05:15You could even come over this way and maybe knock down this ramshackle
0:05:15 > 0:05:18little garage thing so that you don't lose too much of the garden.
0:05:18 > 0:05:20You can extend this way, you can extend up...
0:05:20 > 0:05:22It all comes down to planning, of course.
0:05:22 > 0:05:25And the other big thing it comes down to is, is it financially worth it?
0:05:25 > 0:05:28It's going to cost you a bit, but round here,
0:05:28 > 0:05:33properties really do hold their value, get their money back.
0:05:33 > 0:05:36It's a very desirable place to be, so spend your money here and I think
0:05:36 > 0:05:38it'll be money well spent.
0:05:42 > 0:05:44For my money, a three,
0:05:44 > 0:05:47or even four, bedroomed home wouldn't look out of place here, and as for the
0:05:47 > 0:05:50layout, well, the sky's the limit.
0:05:51 > 0:05:56# Blue skies smiling at me
0:05:56 > 0:06:00# Nothing but blue skies
0:06:00 > 0:06:01# From now on... #
0:06:04 > 0:06:09We asked along a local estate agent to get his take on the property,
0:06:09 > 0:06:12which went to auction with a guide price of 150,000.
0:06:13 > 0:06:18The property is very dated and could do with a lot of money spending on
0:06:18 > 0:06:20it, and indeed some clever extension.
0:06:22 > 0:06:26And once done up, what does he think the property might rent out for?
0:06:26 > 0:06:30If the property's refurbished to a good standard, including three bedrooms,
0:06:30 > 0:06:34I anticipate that the rental value of the property would be around
0:06:34 > 0:06:36£900 per calendar month.
0:06:37 > 0:06:41And if the purchaser were to put the renovated property on the resale
0:06:41 > 0:06:42market?
0:06:42 > 0:06:48I believe the end value is likely to be around £400,000.
0:06:48 > 0:06:52Well, it's many people's dream to own a property within striking distance
0:06:52 > 0:06:55of this, and with this lot, you've got the opportunity as well to
0:06:55 > 0:06:58potentially design your own home.
0:06:58 > 0:07:01I'm sure it got them excited when it went under the hammer.
0:07:02 > 0:07:05The house turned out to be the last lot of the day,
0:07:05 > 0:07:09but a determined few stayed on for this one.
0:07:09 > 0:07:14Lot 234, guiding £150,000.
0:07:14 > 0:07:16£150,000 seated here.
0:07:16 > 0:07:19OK, we're off. At 150.
0:07:19 > 0:07:21155 anywhere else?
0:07:21 > 0:07:23155. 160.
0:07:23 > 0:07:25160. 170.
0:07:25 > 0:07:26We'll keep in five...
0:07:26 > 0:07:30And sure enough, before long, the bidding was over the £200,000 mark.
0:07:30 > 0:07:33220. 225.
0:07:33 > 0:07:35225. 230.
0:07:35 > 0:07:36230. 240.
0:07:39 > 0:07:42240. 245.
0:07:43 > 0:07:45OK, have a little think for a moment.
0:07:45 > 0:07:47£240,000 here.
0:07:47 > 0:07:50One, 241? Two? 242.
0:07:50 > 0:07:52Seated here. 242.
0:07:52 > 0:07:56With you for the first time, it's against you and yourselves over here,
0:07:56 > 0:08:02too. Second time at £242,000.
0:08:02 > 0:08:05Third and last time of calling, if there's any advance,
0:08:05 > 0:08:10£242,000 seated for the last lot of the day...
0:08:10 > 0:08:12It's with you.
0:08:12 > 0:08:19It was bidder 242, who paid £242,000 for the property.
0:08:19 > 0:08:23And that bidder was Sue, who attended the auction with her partner, Des.
0:08:23 > 0:08:28Des is a landscape designer and gardener and Sue knows her onions, too,
0:08:28 > 0:08:32as it were, having worked in property development for a number of years.
0:08:32 > 0:08:35I met with Sue back at the property to find out their plans.
0:08:39 > 0:08:40Sue, lovely to meet you.
0:08:40 > 0:08:42- Congratulations.- Thank you very much.
0:08:42 > 0:08:44Tell me why you wanted to buy this place.
0:08:44 > 0:08:48The main reason was we couldn't find anything else that we actually liked
0:08:48 > 0:08:52which was a done house. And then one day, out of the blue,
0:08:52 > 0:08:55Keith from the agency phoned us and said,
0:08:55 > 0:08:58"I've got this house coming up in Budleigh Salterton.
0:08:58 > 0:09:00"Would you like to view?"
0:09:00 > 0:09:02And basically that was it.
0:09:02 > 0:09:07- Right.- Erm, didn't expect to get it, actually.
0:09:07 > 0:09:09I was a bit philosophical.
0:09:09 > 0:09:11If I was meant to have it,
0:09:11 > 0:09:14I would have it and it would be the price that I was happy to pay.
0:09:14 > 0:09:17Right, and were you happy with what you paid for it in the end?
0:09:17 > 0:09:19Yes, extremely.
0:09:22 > 0:09:25Having looked at over 100 properties in the last 18 months,
0:09:25 > 0:09:30Des and Sue were over the moon when this one came to auction, and Sue
0:09:30 > 0:09:33always felt the house was destined to be theirs.
0:09:34 > 0:09:38That's what I believe, and there were so many sort of, you know,
0:09:38 > 0:09:42things happening and there was, like, a calling.
0:09:42 > 0:09:46- What kind of things were going on? - It was the...
0:09:46 > 0:09:51way things went for the auction, you know, my registration number and...
0:09:51 > 0:09:53Which was the same as the price you paid.
0:09:53 > 0:09:57Yes, I know, which was...
0:09:57 > 0:09:59very, very, very spooky.
0:09:59 > 0:10:01- Yeah.- So I just think it was meant to be.
0:10:01 > 0:10:05Shame you weren't number 150, isn't it, really?
0:10:05 > 0:10:06THEY LAUGH
0:10:06 > 0:10:10That would have been nice, but I couldn't see that happening,
0:10:10 > 0:10:11not for one moment, no.
0:10:14 > 0:10:17Even buying at £242,000,
0:10:17 > 0:10:21Sue and Des have scope to do something quite exciting here.
0:10:21 > 0:10:24So, what do they have in mind, exactly?
0:10:25 > 0:10:32What I've suggested to the architect is the fact that this house really
0:10:32 > 0:10:37has everything ripped out of it, and we actually use this ground floor as
0:10:37 > 0:10:42the new garages because the garage has got to come down, because it's
0:10:42 > 0:10:44just completely in the way.
0:10:44 > 0:10:50And then over the top, then we put a guest bedroom and an en-suite.
0:10:50 > 0:10:54- Wow!- And then we do some form of connection between
0:10:54 > 0:10:58this old section and our new extension.
0:10:58 > 0:11:00Wow!
0:11:00 > 0:11:02- That's my idea.- Yeah.
0:11:02 > 0:11:05The architect actually went, "Oh, I quite like that!"
0:11:05 > 0:11:08Yeah, well, it's radical.
0:11:08 > 0:11:12I just gave him a few sort of criteria.
0:11:12 > 0:11:17I said I didn't want to oversize the property for the amount of land, and
0:11:17 > 0:11:22I didn't want to overinvest, so, you know,
0:11:22 > 0:11:25I've got my figure that I want to work to.
0:11:25 > 0:11:28- Which is?- I want to...
0:11:28 > 0:11:31kill it all for about 155.
0:11:31 > 0:11:34Wow! Big budget.
0:11:34 > 0:11:36I think it needs a big budget.
0:11:36 > 0:11:38- Yeah.- We're not looking to make any money on it.
0:11:38 > 0:11:43I just want to have the home that we would like, you know,
0:11:43 > 0:11:45that we've had in the past,
0:11:45 > 0:11:49but we don't want the amount of garden and land that we've had in
0:11:49 > 0:11:52the past. We want an easier lifestyle.
0:11:52 > 0:11:55MUSIC: Take It Easy by Eagles
0:11:58 > 0:12:02And what better place than this lovely corner of Devon to take it easy?
0:12:02 > 0:12:06There is quite a bit to do before Sue and Des can kick back,
0:12:06 > 0:12:10but they are hoping to have everything finished in a year, and they're
0:12:10 > 0:12:12looking to futureproof the place, too.
0:12:13 > 0:12:18We do want to incorporate a downstairs bedroom with en suite, with a sort
0:12:18 > 0:12:23of a conservatory or garden room, basically because my mother,
0:12:23 > 0:12:25if she comes to stay, can't do stairs.
0:12:25 > 0:12:29- Right.- So, you know, I mean, if we're still here,
0:12:29 > 0:12:32we might need that in ten years' time.
0:12:32 > 0:12:34Well, listen, congratulations.
0:12:34 > 0:12:38- Delighted for you. Good luck with it, and I look forward to seeing how you get on.- Thank you.
0:12:40 > 0:12:44Well, Sue had a calling to this property and hopefully her plans will do
0:12:44 > 0:12:45justice to the place,
0:12:45 > 0:12:50but there's still that all-important planning to get before they can turn
0:12:50 > 0:12:53it into the bright home that they hope for.
0:12:53 > 0:12:56How will they get on? You can find out later in the show.
0:13:01 > 0:13:06We're just 20 miles north of Cardiff now in the south Wales town of
0:13:06 > 0:13:10Blackwood. The property we're here to see is just three miles away from
0:13:10 > 0:13:14the centre of Blackwood and only three miles from Pengam train station, which
0:13:14 > 0:13:16takes you into the heart of Cardiff.
0:13:16 > 0:13:19And here we are. It's a semidetached house,
0:13:19 > 0:13:24it's got three bedrooms and a guide price of £40,000 plus.
0:13:24 > 0:13:26What a great start - off-street parking.
0:13:27 > 0:13:31Before you get your car in here, I suggest a lawnmower,
0:13:31 > 0:13:32but it's a bonus nonetheless.
0:13:34 > 0:13:39OK. We're straight into a small porch here, and you've got your
0:13:39 > 0:13:45stairs right in front of you going up to the bedrooms. And then into a good-size
0:13:45 > 0:13:47living/lounge area.
0:13:47 > 0:13:49Dual aspect, nice big windows at each end.
0:13:49 > 0:13:53You have got some polystyrene tiles, but I'd definitely want to get rid of those.
0:13:53 > 0:13:54They are a fire hazard.
0:13:54 > 0:13:57But I've got to say, it's a carpet that I do recognise from my youth
0:13:57 > 0:13:58back in Leicester.
0:13:59 > 0:14:05And in here, we have got dining room and the kitchen just at the back
0:14:05 > 0:14:10there. But what I have noticed is there's a fireplace just there and
0:14:10 > 0:14:13another one just here in the dining room, but they're not flush,
0:14:13 > 0:14:16they're sort of offset.
0:14:16 > 0:14:20So, this whole wall that's taking up all this space is chimney.
0:14:22 > 0:14:24I'd look to get rid of this,
0:14:24 > 0:14:26depending on what you want to do with the property.
0:14:26 > 0:14:28If you're looking to rent it or sell it,
0:14:28 > 0:14:32it'd possibly eat into your budget just that little bit too much.
0:14:32 > 0:14:35On the other hand, if you're looking to make this your home,
0:14:35 > 0:14:39getting rid of this wall would create so much more space.
0:14:39 > 0:14:42It will be a big job and will take a bit of time, though.
0:14:44 > 0:14:47As ever, think about what the property is for before you get the
0:14:47 > 0:14:51sledgehammer out, but it's definitely an option and not the only one I've
0:14:51 > 0:14:52spotted.
0:14:54 > 0:14:58This is an ex-local authority house and they're normally well proportioned
0:14:58 > 0:15:00with good-size rooms, but look at this kitchen.
0:15:00 > 0:15:02It's tiny!
0:15:02 > 0:15:05Now, what I suggest is you take this wall out, cos on the other side of
0:15:05 > 0:15:10this wall is the front door. So if you can imagine coming into the property
0:15:10 > 0:15:13and turning left, that would bring you into the kitchen.
0:15:13 > 0:15:15Save you going through the lounge,
0:15:15 > 0:15:18through the dining room and into the kitchen.
0:15:18 > 0:15:22I would also take down that wall there that's dividing kitchen and dining
0:15:22 > 0:15:25room and have one big open space.
0:15:25 > 0:15:28That's definitely the way to go for me.
0:15:29 > 0:15:33I know, I'm really going for it here, and you'll be wondering what's going
0:15:33 > 0:15:37to be left to hold this house up apart from RSJs, which are,
0:15:37 > 0:15:41as we all know, all together now - rolled steel joists.
0:15:41 > 0:15:44But modern living needs a decent-sized kitchen,
0:15:44 > 0:15:47even if open-plan isn't your thing.
0:15:48 > 0:15:51So, there's three decent bedrooms up here.
0:15:51 > 0:15:56You've got a separate toilet, separate bathroom, and in here,
0:15:56 > 0:16:00I'm guessing there's a water tank. Yes, it's the old water tank.
0:16:00 > 0:16:04Now, I'd look to get rid of that, put a brand-new combi boiler in,
0:16:04 > 0:16:09reposition it, possibly downstairs, out of the way, and try and create a
0:16:09 > 0:16:11big family bathroom. Take this wall out,
0:16:11 > 0:16:17you could even have a freestanding shower in the bathroom as well, or
0:16:17 > 0:16:22put a shower over the bath and have this as storage space, airing cupboard,
0:16:22 > 0:16:27whatever you want, but there's loads of scope to make a family bathroom there.
0:16:28 > 0:16:31So, three bedrooms up here,
0:16:31 > 0:16:34two of which are good-size doubles that just need a lick of paint,
0:16:34 > 0:16:36really.
0:16:36 > 0:16:41The third is more of a box room, but still counts as a bedroom.
0:16:41 > 0:16:44Out the back, you've got a nice-size family garden that needs a bit of a
0:16:44 > 0:16:48tidy up, and I think you'll have to get the mower out as well.
0:16:49 > 0:16:53What does the auctioneer who sold it think about this rather dated semi?
0:16:55 > 0:16:58Somebody needs to come in here and do a lot of work to it to get it up
0:16:58 > 0:17:01to a modern spec, but at least they can see what they have to do quite
0:17:01 > 0:17:03clearly. I think you could do some knocking around with it.
0:17:03 > 0:17:06I think, ideally, knock the kitchen through to the dining room to create
0:17:06 > 0:17:10a more open living space and then, really, it's a question of
0:17:10 > 0:17:14maybe renewing ceilings, decorating throughout and then see, really,
0:17:14 > 0:17:17as you go along, if there's any other bits and pieces that need doing.
0:17:17 > 0:17:21The auctioneer and I agree, then, but what would all that work cost?
0:17:21 > 0:17:25I think you could easily spend £20,000 on the house, and that's if you're
0:17:25 > 0:17:26doing some of the work yourself.
0:17:26 > 0:17:30If you gave a builder free rein to come in and do work for you,
0:17:30 > 0:17:31it could be even higher,
0:17:31 > 0:17:34maybe 25 or a bit more, so you'd need to watch your budget on this
0:17:34 > 0:17:36one, I think, if you're going to make any money on it.
0:17:36 > 0:17:38So, if that work was done,
0:17:38 > 0:17:42what kind of value does the auctioneer think this property could be worth?
0:17:42 > 0:17:45If this was going to be put on the open market once renovated,
0:17:45 > 0:17:48I would expect it to be worth about £85,000.
0:17:48 > 0:17:50And what about the rental?
0:17:50 > 0:17:52If it were put on the market for rental,
0:17:52 > 0:17:57it would be worth somewhere between £525 and £550 per calendar month.
0:17:58 > 0:18:03This is a good, solid ex-local authority house with the potential to add
0:18:03 > 0:18:07value, only if you get it for the right price.
0:18:07 > 0:18:10Let's find out what it did go for when it went under the hammer.
0:18:13 > 0:18:16Semidetached house, spacious garden there.
0:18:16 > 0:18:20UPVC double glazed, requires some upgrading.
0:18:20 > 0:18:23Wave your hand at me at 40. 35, then, if you like, just to get it started.
0:18:23 > 0:18:26Two bids, I'll take, seated, because I can see you clearly. 30...
0:18:26 > 0:18:27What did I say? 35, was it?
0:18:27 > 0:18:3035, thank you, sir. 36, wave at me, standing up.
0:18:30 > 0:18:32Thank you. 36. 37.
0:18:32 > 0:18:3438. 38, madam, there, thank you.
0:18:34 > 0:18:3739. And 40.
0:18:37 > 0:18:4040, then, right at the back. 41. 41.
0:18:40 > 0:18:4342. 42, thank you.
0:18:43 > 0:18:4642. 43 to you, sir, if you want.
0:18:46 > 0:18:4843, madam, thank you. 44.
0:18:48 > 0:18:5144, back there if you like.
0:18:51 > 0:18:53Plenty of interest in this one, then.
0:18:53 > 0:18:57We re-join the bidding at 61,000.
0:18:57 > 0:19:0061. 62. 62, well done.
0:19:00 > 0:19:0362. 63. 64.
0:19:04 > 0:19:0864. 64. 65. 66.
0:19:10 > 0:19:14At 65,000, are you going to lose it, or are you going to have one more go?
0:19:14 > 0:19:1666, well done. 67.
0:19:16 > 0:19:1768 now?
0:19:18 > 0:19:2068?
0:19:20 > 0:19:22At 67, are you sure?
0:19:22 > 0:19:25I'm going to have one more go at 67,000, you're going to lose it.
0:19:25 > 0:19:26At 68, well done.
0:19:26 > 0:19:2868. 69, so it's neck and neck now.
0:19:28 > 0:19:3269? No. At 68, then, that extra bid was worth it.
0:19:32 > 0:19:35At £68,000 for the first time.
0:19:35 > 0:19:36Are you sure? One more if you want.
0:19:36 > 0:19:39At 68,000 for the second time.
0:19:39 > 0:19:42Third and last time at £68,000.
0:19:42 > 0:19:43Well done, ladies.
0:19:43 > 0:19:48So, the hammer fell at £68,000, and the successful bidder was Cerys.
0:19:48 > 0:19:50# She's got it
0:19:50 > 0:19:52# Ooh, baby, she's got it
0:19:52 > 0:19:54# Ooh, baby, she's got it
0:19:54 > 0:19:56# I can't do without her... #
0:19:56 > 0:19:59She got it! And it's the first project between her,
0:19:59 > 0:20:04her partner, Ben, and Ben's sisters, Carla and Christina.
0:20:04 > 0:20:07It was Cerys and Christina who joined me back at the property to tell me
0:20:07 > 0:20:10why the four of them bought this place in Blackwood.
0:20:12 > 0:20:15- Cerys, nice to meet you. - Nice to meet you.- Christina.
0:20:15 > 0:20:17- Nice to meet you. - Congratulations to you.
0:20:17 > 0:20:19- Thank you.- What made you buy this house?
0:20:19 > 0:20:21Well, my partner was interested in it,
0:20:21 > 0:20:25the fact that it's a semidetached with a nice-sized garden.
0:20:25 > 0:20:29The main town is a mile down the road and we're obviously right next
0:20:29 > 0:20:33to a primary school as well, so quite a lot of benefits with the property.
0:20:33 > 0:20:35And what was it that made you look for properties?
0:20:35 > 0:20:38What are you hoping to do? Are you looking to start a portfolio,
0:20:38 > 0:20:39- Christina?- Yeah, well,
0:20:39 > 0:20:42this is obviously our first one, so we're hoping to build on this.
0:20:42 > 0:20:45It's going to be a learning experience, really, I think.
0:20:45 > 0:20:49Anything frightening you? You're dipping your toe into the property world.
0:20:49 > 0:20:52Yeah, it's a bit daunting, but we've had some experience.
0:20:52 > 0:20:56The house I'm in at the minute, we've renovated that, so me and my partner sort of know
0:20:56 > 0:20:58what we're going into, I suppose.
0:20:58 > 0:21:02Yes, but doing up your own house is very different from doing up a house
0:21:02 > 0:21:07for business, so I'm intrigued to know what their plans are for house number one.
0:21:07 > 0:21:10Well, there's a new heating system needs to be put in.
0:21:10 > 0:21:14We're looking at the electrics as well, a new bathroom and kitchen.
0:21:14 > 0:21:17We're going to strip it right through and plaster right through and then
0:21:17 > 0:21:19hopefully do the decorating ourselves.
0:21:19 > 0:21:24- So, what are your skills, then? You're going to do a bit of painting?- Yeah, painting.
0:21:24 > 0:21:27I'm going to hopefully, obviously get a new carpet and just the general
0:21:27 > 0:21:30- decorating then.- And your fireplaces?
0:21:30 > 0:21:32- They're all going to go. - Everything's going. Doors?
0:21:32 > 0:21:33- New doors.- OK.
0:21:33 > 0:21:37And in regards configuration of the house itself,
0:21:37 > 0:21:40are you looking to change anything, knock any walls down?
0:21:40 > 0:21:42- Yeah, we are, aren't we?- At the minute,
0:21:42 > 0:21:46the kitchen's really small, so we're hoping to change the dining room
0:21:46 > 0:21:50into the kitchen and then use the smaller room as a utility room,
0:21:50 > 0:21:52then, cos at the minute, it is very small.
0:21:52 > 0:21:54We do propose with the bathroom as well,
0:21:54 > 0:21:58knocking that wall through to have it as a main, but we're not sure yet.
0:21:58 > 0:21:59We're going to wait on quotes and things.
0:21:59 > 0:22:03OK, and what are your plans in regards what you're going to spend on it?
0:22:03 > 0:22:06- 10,000-15,000, we were thinking. - Mm-hm.
0:22:06 > 0:22:10OK, so you've spent 68 on it and you're going to spend 10-15,
0:22:10 > 0:22:14which will give you... It'll be 83 total spend.
0:22:14 > 0:22:16What are you hoping to get back in, then, when you sell it?
0:22:16 > 0:22:20Well, really, we're hoping just to break even at this point.
0:22:20 > 0:22:23It's our first project, but we've been looking at properties in the area.
0:22:23 > 0:22:27Yeah, and they've gone for about 95, so we'd be hoping to get something
0:22:27 > 0:22:28like that, but like we say...
0:22:28 > 0:22:31Always. Always looking for a profit.
0:22:31 > 0:22:34You've got to always look for a profit, that's the whole idea.
0:22:34 > 0:22:37Come on, Christina, I want a bit more positivity off you!
0:22:37 > 0:22:39- I'm not very positive, am I? - You can do this!
0:22:39 > 0:22:44# You've got to accentuate the positive
0:22:44 > 0:22:48# Eliminate the negative
0:22:48 > 0:22:51# Latch on to the affirmative
0:22:51 > 0:22:54# Don't mess with Mr In-Between... #
0:22:54 > 0:22:56Now I'm giving out positive vibes,
0:22:56 > 0:23:00but there is a difference in the resale figure of the price they are
0:23:00 > 0:23:03hoping for and the auctioneer's advice earlier.
0:23:03 > 0:23:07Accentuating the positive, though, there are four of them,
0:23:07 > 0:23:11it's a pretty solid house and they have tradespeople that can do the
0:23:11 > 0:23:13work for them in that two-to-three month timescale.
0:23:13 > 0:23:15Hopefully, they'll be OK.
0:23:15 > 0:23:17Think positive, that's my motto.
0:23:17 > 0:23:20OK, enough about the house and what you're going to do.
0:23:20 > 0:23:22Tell us about yourselves. What are your day jobs?
0:23:22 > 0:23:23Well, two days a week, I work for my parents.
0:23:23 > 0:23:25They've got a timber haulage company,
0:23:25 > 0:23:29which Cerys's partner works for and my sister, who is also involved in this.
0:23:29 > 0:23:32And the rest of the week, then, I'm studying to be a nurse.
0:23:32 > 0:23:35- Are you really?- Yeah.- Good luck with that, I wish you all the best.
0:23:35 > 0:23:38- Thank you.- And yourself, what do you do?- I'm a teaching assistant at the minute,
0:23:38 > 0:23:42but I'm also studying to be a beautician, so lots of studying going on.
0:23:42 > 0:23:44- Yeah.- Ambitious girls!
0:23:44 > 0:23:47- We like to be busy, don't we? - Yeah.- Good on you. I wish you all the best,
0:23:47 > 0:23:50I think you're doing the right thing, following the right steps.
0:23:50 > 0:23:54- Good luck, Cerys. I wish you all the best.- Thank you.- Christina, good luck.- Thanks.- Take care.
0:23:54 > 0:23:59This could be a good first house for the girls to start off with,
0:23:59 > 0:24:00but with what they've paid for it,
0:24:00 > 0:24:04I'm just a little bit worried about the scope for profit with this
0:24:04 > 0:24:06particular project.
0:24:06 > 0:24:09They'll definitely have to keep an eye on their budget,
0:24:09 > 0:24:12but you can find out how this family project gets on later in the
0:24:12 > 0:24:13programme.
0:24:15 > 0:24:20Coming up, in south London, Lucy finds a house that's full of surprises.
0:24:21 > 0:24:24Oh, this is not how I was expecting it on the inside!
0:24:26 > 0:24:29And we return to south Wales to see what Cerys and Christina made of
0:24:29 > 0:24:31their first property development.
0:24:31 > 0:24:34It's been quite nice, really.
0:24:37 > 0:24:42But first, we return to east Devon and the small coastal town of
0:24:42 > 0:24:47Budleigh Salterton. It was here, just a few miles from the sea,
0:24:47 > 0:24:48we found a house...
0:24:50 > 0:24:55..with loads of rooms, but no natural flow and, incredibly,
0:24:55 > 0:24:56just one bedroom.
0:24:57 > 0:25:01There... The.. What is going on with this place?
0:25:01 > 0:25:03# Don't make no sense... #
0:25:03 > 0:25:07Yes, there was no sense in the layout in the house and it was also muddled
0:25:07 > 0:25:10further by a collection of dilapidated outbuildings.
0:25:10 > 0:25:13# I said it don't make no sense... #
0:25:13 > 0:25:17But this was a large plot in a beautiful position and was crying out for
0:25:17 > 0:25:21someone with a clear vision to bring all the elements together and turn
0:25:21 > 0:25:23it into something really special.
0:25:24 > 0:25:29Ready and waiting with those visionary ideas were Sue and her partner, Des...
0:25:29 > 0:25:34- It's with you.- ..who bought it for £242,000 at auction.
0:25:35 > 0:25:42What I've suggested to the architect is the fact that this house really
0:25:42 > 0:25:47has everything ripped out of it and we actually use this ground floor as
0:25:47 > 0:25:52the new garages, because the garage has got to come down, because it's
0:25:52 > 0:25:54just completely in the way.
0:25:54 > 0:25:59And then over the top, then we put a guest bedroom and an en-suite.
0:25:59 > 0:26:04- Wow!- And then we do some form of connection
0:26:04 > 0:26:08between this old section and our new extension.
0:26:08 > 0:26:10Wow!
0:26:10 > 0:26:12- That's my idea.- Yeah.
0:26:12 > 0:26:15The architect actually went, "Oh, I quite like that!"
0:26:15 > 0:26:18Yeah, well, it's radical.
0:26:18 > 0:26:23As we know, "radical" doesn't readily come cheap and, sensibly, the couple
0:26:23 > 0:26:27had a healthy budget of £155,000.
0:26:27 > 0:26:29The timescale would depend on the planners.
0:26:29 > 0:26:33The hope was that Sue and Des would have their ideal forever home in a
0:26:33 > 0:26:36year. But as they say,
0:26:36 > 0:26:42the best laid plans of mice and men, or in this case, bats, trees, wildlife,
0:26:42 > 0:26:44structural surveys, planning and building consents,
0:26:44 > 0:26:47it's now four and a half years later.
0:26:51 > 0:26:53So, the main house is still standing,
0:26:53 > 0:26:57as is the garage, so clearly a slight change of plan.
0:27:01 > 0:27:04But the big change here is the removal of all the outbuildings and
0:27:04 > 0:27:09the building of a new extension, which houses a bedroom with an en-suite.
0:27:16 > 0:27:18There's a big lounge.
0:27:23 > 0:27:25And a modern kitchen.
0:27:31 > 0:27:33What a difference it makes!
0:27:33 > 0:27:36But building it wasn't without its problems.
0:27:37 > 0:27:41The biggest challenge was actually getting the house out of the ground.
0:27:41 > 0:27:47We had to have 23 piles installed, and then we had to have the oversite
0:27:47 > 0:27:49concrete poured.
0:27:49 > 0:27:52And, actually, things progressed very quickly after that, didn't they?
0:27:52 > 0:27:54- Yes, they did.- With the extension out,
0:27:54 > 0:27:58the old house was taken back to the shell and reconfigured to flow
0:27:58 > 0:28:02seamlessly. It now has the...not planned garage,
0:28:02 > 0:28:04but another large bedroom with en suite.
0:28:07 > 0:28:11Upstairs, there is another bedroom, again with en suite.
0:28:14 > 0:28:16And an office space.
0:28:16 > 0:28:19It might be four and a half years since we've been back,
0:28:19 > 0:28:23but it's been Des and Sue's home for quite a while now.
0:28:23 > 0:28:26We actually moved in, um,
0:28:26 > 0:28:30the 15th of August 2013.
0:28:30 > 0:28:34However, it was not finished by any means.
0:28:34 > 0:28:38This extension was built,
0:28:38 > 0:28:41but we didn't have fitted wardrobes and there was a lot of things that
0:28:41 > 0:28:43weren't complete.
0:28:43 > 0:28:46- We camped on the floor at one time. - Yeah, we did!
0:28:46 > 0:28:50# Going to take it step by step
0:28:50 > 0:28:54# Little by little, that's all
0:28:55 > 0:28:59# And though it may be a long time
0:28:59 > 0:29:03# If you and I'm strong, that's all... #
0:29:03 > 0:29:06Sue has run a property development company in the past,
0:29:06 > 0:29:11but they decided, because of the complexity of the work, to employ a project manager.
0:29:11 > 0:29:16But Des is a retired landscape gardener so that area was down to him.
0:29:16 > 0:29:19The first thing I wanted to do was create more space, so there was
0:29:19 > 0:29:21a bank of soil there,
0:29:21 > 0:29:24which came in very handy because I was able to use that in other parts
0:29:24 > 0:29:27of the garden to fill in.
0:29:27 > 0:29:29And having created more space,
0:29:29 > 0:29:32it enabled me, then to put in borders and a lawn.
0:29:32 > 0:29:35It was basically...
0:29:35 > 0:29:37a suck-it-and-see kind of situation, you know,
0:29:37 > 0:29:40and just see what's there and what can be done.
0:29:40 > 0:29:42Together, they've done a remarkable job,
0:29:42 > 0:29:47turning an odd mix of buildings into a luxury three-bed house with loads
0:29:47 > 0:29:49of space,
0:29:49 > 0:29:53a garage, workshop and beautiful gardens.
0:29:53 > 0:29:57And although Sue had a healthy budget of 155,000,
0:29:57 > 0:30:01I'm guessing from the end result, that might not have been enough.
0:30:01 > 0:30:06All in all, I expect we've spent, including the purchase price,
0:30:06 > 0:30:09about just over 500,000.
0:30:10 > 0:30:12So, perhaps not surprisingly,
0:30:12 > 0:30:16they were nearly £100,000 over their original budget.
0:30:16 > 0:30:19But for an all-in price of just over 500,000,
0:30:19 > 0:30:23they seem to have got themselves a fantastic property.
0:30:23 > 0:30:26What will two local agents make of their labour of love?
0:30:26 > 0:30:28First, the agent who saw it last time.
0:30:30 > 0:30:32The property is absolutely stunning.
0:30:32 > 0:30:35The transformation is quite unbelievable, really,
0:30:35 > 0:30:38from what it was to what it is now.
0:30:38 > 0:30:42In fact, if property refurbishment was an Olympic sport,
0:30:42 > 0:30:44you'd have to give them a gold medal, wouldn't you?
0:30:44 > 0:30:48First impressions are, it's a beautiful home, lovely location,
0:30:48 > 0:30:52the attention to detail and finish is fantastic, and the way they've
0:30:52 > 0:30:57linked the old part to the new part works really well, so faultless, really.
0:30:58 > 0:31:00Yes, glowing comments there.
0:31:00 > 0:31:03But will that be reflected in the sale price of the house Sue and Des
0:31:03 > 0:31:08have invested over £500,000 into?
0:31:08 > 0:31:12I would feel uncomfortable with putting this to the market at a price less
0:31:12 > 0:31:14than £600,000.
0:31:14 > 0:31:18I'd happily market this at a guide price of £600,000.
0:31:18 > 0:31:20I think that's a very realistic figure.
0:31:20 > 0:31:22Yep, in today's market.
0:31:22 > 0:31:23Yep, we're happy with that.
0:31:23 > 0:31:27So, a potential pre-tax profit of around 100 grand.
0:31:27 > 0:31:30But this house isn't likely to be for sale any time soon.
0:31:30 > 0:31:35Indeed, the design of the extension with the en-suite bedroom was to
0:31:35 > 0:31:39futureproof the property for when they get older and may not want to
0:31:39 > 0:31:41encounter the stairs every day.
0:31:41 > 0:31:44So, are they pleased with the way it all turned out?
0:31:46 > 0:31:52I feel very proud of what we've actually achieved here because it is...
0:31:54 > 0:31:57It's come out basically how we wanted it.
0:31:57 > 0:32:00- Yeah, it's everything we could have wished for.- Yeah.- Yeah.
0:32:03 > 0:32:07Lucy's auction lot this time is in Streatham Vale in the London borough
0:32:07 > 0:32:12of Lambeth. It's certainly becoming more popular and pricy, as this area
0:32:12 > 0:32:14boasts good amenities.
0:32:16 > 0:32:20Just a few minutes' walk from Streatham Vale Park and ten minutes' walk to
0:32:20 > 0:32:25the station, with just a 20-minute train journey into central London,
0:32:25 > 0:32:27is the property I'm here to see.
0:32:27 > 0:32:30Well, it's a 1930s-style three-bedroom terrace,
0:32:30 > 0:32:35it's got a garden and it was up for auction for £300,000.
0:32:35 > 0:32:37I'm going to go inside.
0:32:38 > 0:32:42Let's hope this 1970s pebbledash frontage isn't a sign of things to come.
0:32:46 > 0:32:48Oh, this is not how I was expecting it on the inside,
0:32:48 > 0:32:51although I love the space.
0:32:51 > 0:32:53That's a really nice staircase.
0:32:53 > 0:32:54It's bigger than I thought.
0:32:54 > 0:32:57I wasn't expecting the brown swirly-whirly roses everywhere,
0:32:57 > 0:33:01but if you stripped all this back, you would have the original features.
0:33:01 > 0:33:05And look at this, really nice reception room here, big.
0:33:05 > 0:33:08You've got a second reception room, which has got a lot more character.
0:33:08 > 0:33:10Wow, it's really quite nice in there.
0:33:10 > 0:33:12And if you can get past all the wallpaper,
0:33:12 > 0:33:15at the back, you've got the kitchen.
0:33:15 > 0:33:17A little bit disappointing - small in size.
0:33:17 > 0:33:20I think I would potentially knock through this wall.
0:33:20 > 0:33:22I know I always say "knock through a wall",
0:33:22 > 0:33:24but I think in this case the kitchen just isn't big enough.
0:33:26 > 0:33:28Not sure about this. How impractical are these cupboards?
0:33:28 > 0:33:31Look, you can barely get your little plates in there.
0:33:31 > 0:33:34Even though you've got quite a practical space with this house,
0:33:34 > 0:33:36they are not working for me.
0:33:36 > 0:33:38Groovy old tiles everywhere.
0:33:38 > 0:33:39The kitchen, well, yes,
0:33:39 > 0:33:43you'd need to get rid of it all and put something modern and fresh here.
0:33:44 > 0:33:48Get rid of the dated decor, you could really transform this place
0:33:48 > 0:33:51without too much effort.
0:33:51 > 0:33:55# You're really lovely
0:33:55 > 0:33:58# Underneath it all
0:33:58 > 0:34:02# You want to love me
0:34:02 > 0:34:05# Underneath it all... #
0:34:05 > 0:34:09Well, this house is intriguing me because it's got a wider staircase than
0:34:09 > 0:34:12normal, and once you take all this off here,
0:34:12 > 0:34:16you're going to have lovely spindles. And I wasn't expecting all this space
0:34:16 > 0:34:21up here on the landing, and it's really growing on me because this is quite
0:34:21 > 0:34:25generous. Good-size bathroom through here, got another bedroom,
0:34:25 > 0:34:27a master suite through there,
0:34:27 > 0:34:30a little bedroom to the back and something else,
0:34:30 > 0:34:31you've got the potential...
0:34:31 > 0:34:35Whoopsie! ..to go up there. Now, I've looked along the street.
0:34:35 > 0:34:38Lots of people have done that, so you could have a loft extension,
0:34:38 > 0:34:42another bedroom, turn this into a four-bed, two-bath property, perhaps.
0:34:42 > 0:34:44You've got to think about the cost implications,
0:34:44 > 0:34:50but I actually think something like that would add value to this house.
0:34:50 > 0:34:51And to top things off,
0:34:51 > 0:34:54there is something else this charming house offers that not every home on
0:34:54 > 0:34:56the street can boast.
0:34:59 > 0:35:03Great news! You get this lovely little garden with the house as well.
0:35:03 > 0:35:05It really is just brimming with character.
0:35:05 > 0:35:07Look at these, look!
0:35:07 > 0:35:09I love it! Traditional French doors.
0:35:09 > 0:35:12These were here when the house was originally built.
0:35:12 > 0:35:15Really lovely, and this little lean-to under here.
0:35:15 > 0:35:20All this space as well, so this house really could work for a family,
0:35:20 > 0:35:21but the best bit for me?
0:35:21 > 0:35:24You're in London. Can you hear anything?
0:35:24 > 0:35:25BIRDS TWEET
0:35:25 > 0:35:27Just birdsong.
0:35:27 > 0:35:28And do you know why that is?
0:35:28 > 0:35:33Because behind there is a nature reserve, so there are no buildings,
0:35:33 > 0:35:36you're not overlooked, just lovely trees.
0:35:36 > 0:35:37Lovely!
0:35:37 > 0:35:42# Yeah, my bird performs
0:35:42 > 0:35:44# There she goes... #
0:35:44 > 0:35:47It really does offer nice views out the back,
0:35:47 > 0:35:50but now it's time for a different point of view.
0:35:51 > 0:35:56What does a local property expert think of the possibilities here?
0:35:56 > 0:35:59You could definitely do a lot more to the house to increase the earning
0:35:59 > 0:36:02potential. One of them would be to go up into the loft and create maybe
0:36:02 > 0:36:04another bedroom or two,
0:36:04 > 0:36:07maybe with an en-suite, or even to do a rear extension.
0:36:07 > 0:36:10I think doing a rear extension or a loft conversion would definitely
0:36:10 > 0:36:12increase the value of the property for sale,
0:36:12 > 0:36:15maybe not influence the value so much for rental.
0:36:15 > 0:36:18This property with an extension added on and modernised to a very good
0:36:18 > 0:36:23standard could easily achieve around the £465-£475,000 mark.
0:36:23 > 0:36:26If the loft conversion was done and an extra bedroom was added,
0:36:26 > 0:36:31then potentially it could go even higher, maybe even up to about 490-500.
0:36:31 > 0:36:33I think this is a fantastic house.
0:36:33 > 0:36:37It's got gorgeous original features, like those French doors I keep banging on
0:36:37 > 0:36:42about, but let's not forget this '70s pebbledash brown exterior.
0:36:42 > 0:36:45It doesn't exactly match up to the interior.
0:36:45 > 0:36:48But what it does offer is practicality and space.
0:36:48 > 0:36:53It certainly needs money spending on it, but the big question is, how much?
0:36:53 > 0:36:56Do you go in the loft? Do you extend out the back?
0:36:56 > 0:37:00Let's see who saw its potential at auction when it went under the hammer.
0:37:01 > 0:37:06Right, lot 31, three-bed mid-terraced house.
0:37:06 > 0:37:08400? 300?
0:37:08 > 0:37:12Well, you've got to try. 300, yeah? 300.
0:37:12 > 0:37:16305. 310.
0:37:16 > 0:37:19315. 320.
0:37:19 > 0:37:21325. 330.
0:37:21 > 0:37:23335.
0:37:23 > 0:37:27From the start, these two bidders were proving inseparable.
0:37:27 > 0:37:31We re-join the bidding at 386,000.
0:37:31 > 0:37:33386.
0:37:33 > 0:37:34387.
0:37:34 > 0:37:37388.
0:37:37 > 0:37:39389.
0:37:39 > 0:37:42390. 391.
0:37:42 > 0:37:43392.
0:37:45 > 0:37:47391, down here.
0:37:47 > 0:37:50391, first time.
0:37:50 > 0:37:52Second time.
0:37:52 > 0:37:55Third and last time if you're all done.
0:37:55 > 0:37:57Sold, 391. Well done.
0:37:57 > 0:38:01The successful bidder, paying 391,000, was Robert.
0:38:01 > 0:38:03Robert has been on the show before,
0:38:03 > 0:38:08but you'll need to have a good memory as it was way back in 2007.
0:38:09 > 0:38:11# I remember you
0:38:11 > 0:38:13# I remember you
0:38:13 > 0:38:16# Feels like it was yesterday
0:38:16 > 0:38:19# I remember you... #
0:38:19 > 0:38:22Robert came along with one of his sons, James.
0:38:22 > 0:38:23James is a letting agent.
0:38:23 > 0:38:25How handy is that?
0:38:25 > 0:38:28It sounds like property might be in the family.
0:38:28 > 0:38:30It's time to find out what's been going on.
0:38:30 > 0:38:32Guys, congratulations on the house.
0:38:32 > 0:38:35I know you've been on Homes Under The Hammer before, about seven years ago.
0:38:35 > 0:38:39- Yes.- That's right.- So there's been no holding you back as far as buying
0:38:39 > 0:38:41- at auction goes, then?- No.
0:38:41 > 0:38:43Not for him, certainly.
0:38:43 > 0:38:47So, what was it about this house that made you want to buy this on auction
0:38:47 > 0:38:49- day?- I've been watching this area.
0:38:49 > 0:38:54I've got a house just a road away and I know it's a very busy area,
0:38:54 > 0:38:57but it has jumped a lot in the last
0:38:57 > 0:39:00- two years.- So, have you bought this as an investment?
0:39:00 > 0:39:01Yes, yes.
0:39:01 > 0:39:04And did you get a chance to view this house for your dad?
0:39:04 > 0:39:06I didn't even know he'd bought the house.
0:39:06 > 0:39:08So, now you've seen it, both of you,
0:39:08 > 0:39:10you've been able to walk around and you've had a good look,
0:39:10 > 0:39:13what do you think now, and what are you going to be doing here?
0:39:13 > 0:39:18I like it. I think it's a very solid house, decent-size rooms.
0:39:18 > 0:39:22There's no big damp problems, there's no issues about cracked ceilings.
0:39:22 > 0:39:24All sorts of good things.
0:39:24 > 0:39:28So, what I'm looking at is really just doing a lot of tidying up.
0:39:28 > 0:39:31- Keep the carpets, you know... - HE LAUGHS
0:39:31 > 0:39:34- Now, you are joking me.- I am joking you.- Keeping the little hatch? - Keeping the hatch.
0:39:34 > 0:39:36That little serving hatch, that's handy, isn't it?
0:39:36 > 0:39:39- He probably will, unfortunately. - I have a very simple maxim.
0:39:39 > 0:39:43It's the Hippocratic oath - I'm going to do no harm to the property at all.
0:39:43 > 0:39:47I'm just going to keep it safe and look after it
0:39:47 > 0:39:49and I am going to keep these windows.
0:39:49 > 0:39:52- I think they're lovely.- Give me five!
0:39:52 > 0:39:55I am so happy! I am really happy about that because I think once you've
0:39:55 > 0:39:58- painted them, they will look beautiful.- They're in lovely condition as well.
0:39:58 > 0:40:01You need to just upgrade them a little bit,
0:40:01 > 0:40:02but this will be the making of this room.
0:40:02 > 0:40:04Yes, it will.
0:40:04 > 0:40:08Hmm, while Robert and Lucy might be on the same page about the doors,
0:40:08 > 0:40:12I'm not sure letting agent James is quite so enthusiastic.
0:40:13 > 0:40:16Are you not keen on them, or you just think they don't fit the property?
0:40:16 > 0:40:18I don't think that they don't fit the property,
0:40:18 > 0:40:21I just think that they're not maybe as modern for the area.
0:40:21 > 0:40:26People aren't necessarily looking for that, knock it out and go larger.
0:40:26 > 0:40:29But then again, I don't work in the area, so he might well be right in keeping them.
0:40:29 > 0:40:31Now, you have got so many options here.
0:40:31 > 0:40:33You can extend out the back,
0:40:33 > 0:40:35like a lot of the properties along here have done so.
0:40:35 > 0:40:37You can also go up into the loft.
0:40:37 > 0:40:39You can also knock through here.
0:40:39 > 0:40:41I think there are lots of stages, aren't there,
0:40:41 > 0:40:46where you do either a very basic turnaround - tidy everything up,
0:40:46 > 0:40:48but keep it cheap.
0:40:48 > 0:40:51And then there's the next stage where you knock through,
0:40:51 > 0:40:55create a little bathroom down here or a toilet, and then the next stage
0:40:55 > 0:40:57is go into the loft as well.
0:40:58 > 0:41:03At the moment, I'm thinking about doing everything clean and tidy and
0:41:03 > 0:41:07- good rental.- So, what sort of budget have you got to spend?
0:41:07 > 0:41:10Probably around 20, I would think.
0:41:10 > 0:41:13And along with that £20,000 budget,
0:41:13 > 0:41:16Robert hopes to get the work done in two to three months, and then it
0:41:16 > 0:41:19should be ready for the rental market.
0:41:19 > 0:41:23I know the last time we met you on the show, you were a teacher.
0:41:23 > 0:41:25Are you still doing that?
0:41:25 > 0:41:27No, I moved through.
0:41:27 > 0:41:31Now I'm an education consultant, more training of teachers.
0:41:31 > 0:41:33So, you're the teachers' teacher!
0:41:34 > 0:41:36- Paid to have arguments with teachers!- That's even better!
0:41:36 > 0:41:38It's even better than a teacher!
0:41:38 > 0:41:40It makes him meticulous.
0:41:40 > 0:41:43Listen, guys, it's been lovely meeting you both. And congratulations,
0:41:43 > 0:41:45and it'll be really interesting seeing this property.
0:41:45 > 0:41:48- Well done.- Many thanks.- Lovely to meet you.- Thank you.- Thank you.
0:41:50 > 0:41:54Well, it looks like we won't be able to teach a thing or two to Robert
0:41:54 > 0:41:57when it comes to property, as he's already in the know on
0:41:57 > 0:42:00a few textbook property strategies.
0:42:00 > 0:42:03Now, Robert has sussed that getting straight As in the decor front, well,
0:42:03 > 0:42:08it doesn't necessarily add up when it comes to profit in property rentals.
0:42:08 > 0:42:09Will that wall still remain?
0:42:09 > 0:42:11That's what I want to know.
0:42:11 > 0:42:13Find out how it gets on later in the lesson.
0:42:13 > 0:42:16Oops, class. Oops, sorry, I mean show.
0:42:20 > 0:42:23Earlier, we saw the end result for one property.
0:42:23 > 0:42:26Hm, so unless the show has changed beyond all recollection without anyone
0:42:26 > 0:42:29telling me? Nope? OK, in that case, there's two more left to see.
0:42:29 > 0:42:32Yes, Martin's correct. Let's find out how they got on.
0:42:34 > 0:42:3920 miles north of Cardiff is the south Wales town of Blackwood,
0:42:39 > 0:42:43and it was here we encountered a three-bed semi that had plenty of land.
0:42:43 > 0:42:47Something that is always good when looking for a property investment -
0:42:47 > 0:42:50plenty of room for improvement.
0:42:50 > 0:42:53Look at this kitchen. It's tiny.
0:42:53 > 0:42:56What I suggest is you take down that wall there that's dividing kitchen
0:42:56 > 0:43:00and dining room and have one big open space.
0:43:00 > 0:43:03That's definitely the way to go for me.
0:43:03 > 0:43:07With a sorry-looking bathroom and the house in poor decorative order,
0:43:07 > 0:43:09there was definitely scope here to add value.
0:43:11 > 0:43:15So it fitted the bill nicely for first-time property developers Cerys
0:43:15 > 0:43:20and Christina who, together with Christina's brother Ben and sister Carla,
0:43:20 > 0:43:23bought it at auction for £68,000.
0:43:23 > 0:43:26# It is a new, new, new
0:43:26 > 0:43:31# New start
0:43:31 > 0:43:33# Now is the start... #
0:43:33 > 0:43:38As first-timers, they were quite rightly being cautious about the outcome.
0:43:40 > 0:43:43Well, really, we're hoping just to break even at this point.
0:43:43 > 0:43:46It's our first project, but we've been looking at properties in the area.
0:43:46 > 0:43:50Yeah, and they've gone for about 95, so we'd be hoping to get
0:43:50 > 0:43:52- something like that.- Always looking for a profit.
0:43:52 > 0:43:55You've got to always look for a profit, that's the whole idea.
0:43:55 > 0:43:58Come on, Christina, I want a bit more positivity!
0:43:58 > 0:44:00- I'm not very positive, am I? - You can do this.
0:44:00 > 0:44:03# So keep your high hopes
0:44:03 > 0:44:06# Keep your high hopes... #
0:44:06 > 0:44:10Well, I had high hopes that trainee nurse Christina and trainee beautician
0:44:10 > 0:44:15Cerys, along with input from Ben and Carla, they could do a top job here.
0:44:15 > 0:44:19Having given themselves a 10-15 grand budget and a two to three month
0:44:19 > 0:44:21timescale, the girls had to get to work.
0:44:24 > 0:44:26And now, almost bang on three months, we are back.
0:44:32 > 0:44:34Looking good, girls, looking good.
0:44:38 > 0:44:40And inside...
0:44:40 > 0:44:43Well, that lounge is now looking fresh and clean.
0:44:45 > 0:44:47But what about that pokey kitchen?
0:44:47 > 0:44:48Did they go for it?
0:44:55 > 0:44:57Yes, they did, and good on you!
0:44:59 > 0:45:02Well, this is obviously now the kitchen.
0:45:02 > 0:45:04It was an existing wall originally,
0:45:04 > 0:45:07the pantry was towards the back and then this was obviously the dining
0:45:07 > 0:45:10room. We've added a breakfast bar,
0:45:10 > 0:45:14the sink's now over there along with the boiler and, yeah,
0:45:14 > 0:45:17we're really happy with how it's turned out cos it's a lovely size, so it's
0:45:17 > 0:45:19really nice, yeah.
0:45:25 > 0:45:29And upstairs, the three bedrooms aren't too shabby, either.
0:45:34 > 0:45:38But what about the other big job in the house, the bathroom?
0:45:42 > 0:45:46Well, this used to be two rooms, so we obviously knocked the wall right
0:45:46 > 0:45:50through. We've added nice light colours in here.
0:45:52 > 0:45:57We actually... This was originally the boiler room, so we knocked that through, just to create
0:45:57 > 0:45:59more space.
0:45:59 > 0:46:02I think it's safe to say with this property refurbishment,
0:46:02 > 0:46:04they've arrived.
0:46:04 > 0:46:08# Here come the girls
0:46:09 > 0:46:12# Here come the girls... #
0:46:15 > 0:46:18- We were pretty much here when we could be in the evenings.- Yeah.
0:46:18 > 0:46:21Yeah, we obviously, like, stripped all the walls.
0:46:21 > 0:46:25We took the ceiling tiles down, which was a nightmare, wasn't it?
0:46:25 > 0:46:27- That was hard work. - THEY LAUGH
0:46:27 > 0:46:30And then obviously when we'd done as much as we could,
0:46:30 > 0:46:32we got the professionals in then to do the rest.
0:46:32 > 0:46:37- And we were just overseeing them, really, that everything was going well.- Mm-hm.
0:46:37 > 0:46:41Christina's brother Ben and sister Carla also helped out,
0:46:41 > 0:46:45but how did it work out with four people involved in the decision making?
0:46:45 > 0:46:49And what was it like working together?
0:46:49 > 0:46:51- Yeah, good. It's been really good. - Yeah.
0:46:51 > 0:46:55At times, you think it's going to be hard, but, you know, we got through it.
0:46:55 > 0:46:58We sort of had our ideas and then we went with it.
0:46:58 > 0:47:00Yeah, we didn't know how it worked, did we,
0:47:00 > 0:47:03- but we sort of went for the majority and that was it, then.- Yeah.
0:47:03 > 0:47:07Well, the end result speaks volumes as to how successful it was, and
0:47:07 > 0:47:09it was done bang on time.
0:47:09 > 0:47:12But what about that 10-15 grand budget?
0:47:12 > 0:47:15Yeah, we stayed well within the budget.
0:47:15 > 0:47:19- We spent...- 10,500.- 10,500
0:47:19 > 0:47:22So we were at the lower end of the budget more than the top end.
0:47:22 > 0:47:24Hats off to you, girls,
0:47:24 > 0:47:29that's good going to come in at the low end on your first project.
0:47:29 > 0:47:34But a ten-and-a-half grand spend on top of their £68,000 purchase price
0:47:34 > 0:47:38does take their total spend to 78 and a half grand.
0:47:38 > 0:47:40Is that money well spent?
0:47:40 > 0:47:42What do two local property experts think?
0:47:42 > 0:47:44I think the changes to the property are really good.
0:47:44 > 0:47:47The standard of finish is generally very high throughout.
0:47:47 > 0:47:49I like the size of the kitchen.
0:47:49 > 0:47:52Usually, you have a separate pantry at the front.
0:47:52 > 0:47:55They've brought that into the kitchen, which will be attractive to buyers,
0:47:55 > 0:47:57and they've added the breakfast bar as well.
0:47:57 > 0:48:00Upstairs, there was a separate cloakroom and bathroom.
0:48:00 > 0:48:02Again, they've knocked that through,
0:48:02 > 0:48:04which is probably more in keeping with what modern families want.
0:48:04 > 0:48:08The finish is nice and neutral and would suit pretty much any buyer.
0:48:08 > 0:48:11I would have done a bit more work to the outside.
0:48:11 > 0:48:15I think finishing the concrete path maybe with some slabs would have
0:48:15 > 0:48:17been a nicer finish.
0:48:17 > 0:48:19Yes, kerb appeal does play a part.
0:48:19 > 0:48:22So perhaps something to think about in the future,
0:48:22 > 0:48:25especially when you plan to sell the house on.
0:48:25 > 0:48:27But could the rental figures change their minds?
0:48:27 > 0:48:31If they were to rent this property out, they would get about £500,
0:48:31 > 0:48:33maybe £520 per calendar month.
0:48:33 > 0:48:38The property would let between £500-£550 per calendar month.
0:48:38 > 0:48:42Erm, yeah, that's a really good figure, yeah.
0:48:42 > 0:48:46That would be an 8% yield, but they're not interested in renting.
0:48:46 > 0:48:52So, how does their 78½ grand investment fare in the resale market?
0:48:52 > 0:48:55Remember, Christina thought, at worst, they would break even.
0:48:56 > 0:48:59I would put this property on the market at around £100,000,
0:48:59 > 0:49:02perhaps just below, 99,950.
0:49:02 > 0:49:06I would market the property between £100,000-£110,000.
0:49:06 > 0:49:08Yeah, that's a brilliant price. Yeah, that's...
0:49:08 > 0:49:11I mean, it's obviously our first project, so we didn't really know what to expect.
0:49:11 > 0:49:15It's just been a really good experience for us, but that's fantastic.
0:49:15 > 0:49:17Yeah.
0:49:17 > 0:49:22Yep, a potential pre-tax profit of £21,500-£31,500,
0:49:22 > 0:49:25so your worries were unnecessary there, Christina.
0:49:28 > 0:49:32They are certainly off to a great start, and they plan to do another
0:49:32 > 0:49:35house soon, along with planning for something else as well.
0:49:37 > 0:49:40Yeah, well, me and my partner got engaged.
0:49:40 > 0:49:44We went on a family holiday to Dubai two weeks ago so, yeah,
0:49:44 > 0:49:45he proposed there.
0:49:45 > 0:49:48With Cerys's partner being Christina's brother Ben,
0:49:48 > 0:49:51it seems they'll soon be sisters-in-law,
0:49:51 > 0:49:54as well as successful business partners.
0:50:02 > 0:50:07Time now to return to south London and the area of Streatham.
0:50:07 > 0:50:11We're going to catch up with a three-bedroom terraced house that
0:50:11 > 0:50:16Lucy looked at. This house looked like it hadn't been touched since the 1970s,
0:50:16 > 0:50:20so there was plenty of scope for improvement inside the house.
0:50:21 > 0:50:23But the best bit for me?
0:50:23 > 0:50:25You're in London. Can you hear anything?
0:50:25 > 0:50:27BIRDS TWEET
0:50:27 > 0:50:29Just birdsong.
0:50:29 > 0:50:31# It's so quiet
0:50:31 > 0:50:33# Shh
0:50:33 > 0:50:35# Shh
0:50:35 > 0:50:37# It's oh so still... #
0:50:37 > 0:50:38But if you listen carefully,
0:50:38 > 0:50:41the one thing you might hear was the clamour to buy it.
0:50:42 > 0:50:46The successful, bidder for £391,000,
0:50:46 > 0:50:49was education consultant and part-time
0:50:49 > 0:50:52property developer Robert, who along with son James,
0:50:52 > 0:50:57explained how he was going to tackle this dated terraced house.
0:50:57 > 0:50:59I think there are lots of stages, aren't there,
0:50:59 > 0:51:03where you do either a very basic turnaround - tidy everything up,
0:51:03 > 0:51:08but keep it cheap - and then there's a next stage where you knock through,
0:51:08 > 0:51:13create a little bathroom down here or toilet, and then the next stage
0:51:13 > 0:51:15is go into the loft as well.
0:51:15 > 0:51:20So, a three-phased process looks like the order of the day, and for
0:51:20 > 0:51:21the first phase of renovation,
0:51:21 > 0:51:26he had a £20,000 budget and hoped to complete the work in two to three
0:51:26 > 0:51:27months.
0:51:29 > 0:51:31Well, nearly two years later,
0:51:31 > 0:51:33we're back, so what on earth has been going on?
0:51:41 > 0:51:44Well, at least from the outside, it looks in great shape,
0:51:44 > 0:51:47but will inside be worth the wait?
0:52:02 > 0:52:06The main changes have been cosmetic, what you actually see.
0:52:06 > 0:52:10Which means, hurrah, he kept those doors!
0:52:10 > 0:52:13But structurally, um,
0:52:13 > 0:52:16knocked down the wall in the dining room to make it an open-plan
0:52:16 > 0:52:17kitchen/diner.
0:52:21 > 0:52:23Ah, so Robert hasn't held back.
0:52:23 > 0:52:27He decided to really go for it, and that open plan kitchen looks so much
0:52:27 > 0:52:32better. No more angle cupboards or kitchen hatch here.
0:52:32 > 0:52:35He's even put in a small cloakroom under the stairs.
0:52:37 > 0:52:38But what about upstairs?
0:52:47 > 0:52:51Good, modern, refined, but is that it?
0:52:51 > 0:52:55Nearly two years of work for a full refurbishment - I was hoping for more.
0:52:55 > 0:52:58But then where else could he go?
0:52:58 > 0:53:01# The only way is up
0:53:01 > 0:53:05# Up, up
0:53:05 > 0:53:08# The only way is up... #
0:53:11 > 0:53:17This is the loft conversion and my idea of trying to make it a studio-type
0:53:17 > 0:53:22place with room for a bed and not exactly a full kitchen,
0:53:22 > 0:53:26but something, you know, somebody could live with.
0:53:26 > 0:53:29I'm particularly pleased with choosing the doors.
0:53:29 > 0:53:34With the wildlife out there, having the doors open
0:53:34 > 0:53:36and nobody looking in,
0:53:36 > 0:53:39I thought worked really well, so I'm very pleased with this.
0:53:39 > 0:53:44And with its own bathroom, this loft space is its own self-contained unit,
0:53:44 > 0:53:49which Robert is considering renting separately from the rest of the house.
0:53:49 > 0:53:50With its elevated position,
0:53:50 > 0:53:54it comes with great views across the revamped garden and to the nature
0:53:54 > 0:53:55reserve beyond.
0:53:58 > 0:54:02And it hasn't just been the house that has benefited substantially
0:54:02 > 0:54:03from the refurbishment work.
0:54:04 > 0:54:09I wanted, really, to have an opportunity for my son. Guy was leaving school
0:54:09 > 0:54:15to work in the adult world and so I wanted to work with him here to do a
0:54:15 > 0:54:19lot of stuff, so he's done most of the painting.
0:54:19 > 0:54:23He just put so much into it and just got on with people, and I just saw
0:54:23 > 0:54:28his social skills and the way he worked and the practical skills just develop.
0:54:28 > 0:54:30It was just a great experience.
0:54:30 > 0:54:34His son James also helped a little, but with a new job,
0:54:34 > 0:54:38his input was more suggestions on how to get the best from the house.
0:54:38 > 0:54:42Although Robert's son Guy may have found this an invaluable experience,
0:54:42 > 0:54:46I'm sure there were substantial costs for Dad.
0:54:46 > 0:54:49Initially, 20,000 was to have electrics and plumbing,
0:54:49 > 0:54:53central heating and then decorate and then out. But, in fact,
0:54:53 > 0:54:58the project changed, so I would imagine that, totally, everything
0:54:58 > 0:55:04was maybe 65, possibly up to 70 if I do any bits and pieces.
0:55:04 > 0:55:08Yes, and not surprising that the £20,000 budget was blown away.
0:55:08 > 0:55:13But a £70,000 spend on top of his £391,000
0:55:13 > 0:55:19purchase price takes Robert's total outlay to £461,000.
0:55:19 > 0:55:21So, was this money well spent?
0:55:21 > 0:55:25What do two local estate agents think?
0:55:25 > 0:55:27I think the standard of finish is very good.
0:55:27 > 0:55:31I like very much the fact that some of the
0:55:31 > 0:55:34'30s features have been kept,
0:55:34 > 0:55:37yet we have all the modern necessities, like modern kitchens,
0:55:37 > 0:55:40bathrooms, so we have the best of both worlds here.
0:55:40 > 0:55:43I think the selling features of the property are the garden,
0:55:43 > 0:55:45the open-plan kitchen/living room,
0:55:45 > 0:55:49the two bathrooms, which are done to a very high, modern standard, and
0:55:49 > 0:55:52- a loft conversion.- The loft conversion was a very good idea.
0:55:52 > 0:55:57It gives that extra space either for Grandmother or a nanny or just a
0:55:57 > 0:56:02friend who wants to stay for a certain amount of time, so an excellent idea.
0:56:02 > 0:56:06Robert hasn't quite decided whether he might keep the house in the
0:56:06 > 0:56:09family or rent out part or all of it.
0:56:09 > 0:56:12But having invested £461,000,
0:56:12 > 0:56:15he may have increased the size of the property,
0:56:15 > 0:56:17but has he increased its value?
0:56:17 > 0:56:22I think this property could sell for a price in the region between
0:56:22 > 0:56:26£640,000 and £655,000.
0:56:26 > 0:56:29I believe if this property was to be put on the market for sale,
0:56:29 > 0:56:33it would sell for £640,000-£650,000.
0:56:33 > 0:56:34That's a good value.
0:56:34 > 0:56:37I've been watching prices and that's slightly better than I thought, so I
0:56:37 > 0:56:40think, in the last six months, they have pushed quite a bit.
0:56:40 > 0:56:45Yes, those values are pretty impressive, with a pre-tax profit of between
0:56:45 > 0:56:51£179,000 and £194,000 potentially on the table.
0:56:51 > 0:56:54But what about those all-important rental values?
0:56:54 > 0:56:55As separate units,
0:56:55 > 0:57:00I would expect, for the three-bedroom house, £2,000,
0:57:00 > 0:57:03and the separate studio should achieve around
0:57:03 > 0:57:05£400-£500 per calendar month.
0:57:05 > 0:57:11I'd rent downstairs as a three-bedroom house for £1,600-£1,700 per
0:57:11 > 0:57:17calendar month, and I'd rent upstairs as a studio flat for £850 per calendar month.
0:57:17 > 0:57:21Those rental values could see a total income of around 2,500,
0:57:21 > 0:57:24which would generate a yield of around 6.5%.
0:57:24 > 0:57:26So is Rob happy with that?
0:57:28 > 0:57:32I think those rental values are good.
0:57:32 > 0:57:35The bad news is I've got a house in the next road and I'm not getting
0:57:35 > 0:57:36- that. - HE LAUGHS
0:57:36 > 0:57:40Well, it may have taken a whole lot longer than originally planned,
0:57:40 > 0:57:45but Robert and his son Guy seem to have got a whole lot more out of the
0:57:45 > 0:57:48house. What advice would he give anyone?
0:57:49 > 0:57:52Property is a good investment if you have a vision about where you're
0:57:52 > 0:57:55going with it and you don't allow
0:57:55 > 0:57:59emotionality along the way to overspend.
0:58:02 > 0:58:05Well, that is the great thing about property developing -
0:58:05 > 0:58:09you never stop learning, even if, like us, you've been doing it for years.
0:58:09 > 0:58:13And hopefully we've been able to give you some advice along the way.
0:58:13 > 0:58:15Yes, so join us here on Homes Under The Hammer next time.
0:58:15 > 0:58:17- See you later.- Goodbye!- Goodbye.