0:00:02 > 0:00:05Hello, and welcome to the show. Today's temperature is a little bit chilly.
0:00:05 > 0:00:08But how can you tell the temperature of the property market?
0:00:08 > 0:00:10Yes, sometimes it blows hot, sometimes it blows cold.
0:00:10 > 0:00:12But one way to find out
0:00:12 > 0:00:14the direction it's moving is to head down
0:00:14 > 0:00:16to your local auction house, and who knows?
0:00:16 > 0:00:19You might even buy your next home under the hammer.
0:00:45 > 0:00:47Well, when you go to a property auction,
0:00:47 > 0:00:50you pretty quickly pick up on whether there's confidence
0:00:50 > 0:00:53in the market, or everyone's playing a bit of a cautious game.
0:00:53 > 0:00:56Yes, you can get a bit of a snapshot into the property market.
0:00:56 > 0:00:59So, why don't we find out how the land lies on the properties
0:00:59 > 0:01:01that went up for auction on today's show?
0:01:02 > 0:01:06In South Norwood, Lucy is not a fan of the decor.
0:01:06 > 0:01:09Scalloped ceiling tiles in there.
0:01:09 > 0:01:12They might even be made out of polystyrene. Mm-mm-mm.
0:01:12 > 0:01:16In Carlisle, this two-bed terrace brings out the optimist in me.
0:01:16 > 0:01:17It's not a bad-sized room,
0:01:17 > 0:01:23and it's nice sometimes to be able to start from scratch in a kitchen.
0:01:23 > 0:01:27Whilst in Derby, Alvaston brings out the music lover in me.
0:01:27 > 0:01:30I can never come to Alvaston in Derbyshire
0:01:30 > 0:01:33without thinking of that Glen Campbell song. It's just, argh!
0:01:33 > 0:01:36All these properties have been sold at auction,
0:01:36 > 0:01:38and we'll find out who bought them
0:01:38 > 0:01:41and what they paid when they went under the hammer.
0:01:41 > 0:01:42Sold.
0:01:48 > 0:01:53Lucy's in South Norwood, in the London Borough of Croydon.
0:01:53 > 0:01:57It's well-served by train links into central London,
0:01:57 > 0:02:00making it a perfect spot for commuters.
0:02:00 > 0:02:03Arthur Conan Doyle, author of Sherlock Holmes,
0:02:03 > 0:02:07lived in this area from 1891 to 1894.
0:02:08 > 0:02:11But you don't need to be a detective to see that South Norwood
0:02:11 > 0:02:13has a lot to offer.
0:02:13 > 0:02:17Well, the good news is that this road is only an eight-minute walk to the station.
0:02:17 > 0:02:21But the bad news is, well, it's even closer, a five-minute walk,
0:02:21 > 0:02:23to Selhurst Park football stadium.
0:02:23 > 0:02:25It's right there at the end of the road.
0:02:25 > 0:02:29And that means it could be very busy here on match days.
0:02:29 > 0:02:32But crowds aside, the property I'm here to see is a three-bed semi,
0:02:32 > 0:02:36and it had a guide price of £300,000.
0:02:36 > 0:02:39Time to start my investigation.
0:02:44 > 0:02:48So, inside the property, not a bad hallway at all,
0:02:48 > 0:02:51although this lino over the floor, it doesn't feel very homely at all.
0:02:51 > 0:02:54You've got the kitchen at the end, the stairs leading up there,
0:02:54 > 0:02:56through into the lounge.
0:02:56 > 0:02:59Well, it's almost like a double-aspect lounge,
0:02:59 > 0:03:00two rooms that have been opened up.
0:03:00 > 0:03:04Brown, plastic double glazing - never been a fan, I have to say.
0:03:04 > 0:03:07But you could really update that with some new,
0:03:07 > 0:03:09fresh, white, clean ones.
0:03:09 > 0:03:10I just don't think that works.
0:03:10 > 0:03:14Bit of a feature here, the bricked up fireplace, looks quite nice.
0:03:14 > 0:03:17Although this room is rather long.
0:03:17 > 0:03:19I'm not sure how you would place your furniture.
0:03:19 > 0:03:23And I'm just thinking, if you did want to open the kitchen up
0:03:23 > 0:03:27and just turn it all around and have a much more spacious feel,
0:03:27 > 0:03:29you could always knock through here.
0:03:29 > 0:03:33But saying that, I think you'd need to put a big steel up here,
0:03:33 > 0:03:37it could be expensive, so it might be worth thinking that through.
0:03:37 > 0:03:39Do you really want to spend the money on it?
0:03:39 > 0:03:42Although it would allow lovely access out into the garden
0:03:42 > 0:03:45if you put the kitchen in both these rooms.
0:03:45 > 0:03:48So, a lot to think about, and it's always good to have too much space,
0:03:48 > 0:03:50rather than not enough.
0:03:50 > 0:03:54Knocking down walls, particularly structural walls,
0:03:54 > 0:03:57and reconfiguring the layout would be a lot of work.
0:03:57 > 0:03:58But Lucy's right -
0:03:58 > 0:04:01the one place where there isn't enough space is this kitchen.
0:04:01 > 0:04:04And the units are definitely not the cat's whiskers,
0:04:04 > 0:04:06so reconfiguring would be good.
0:04:06 > 0:04:10Well, upstairs is quite a collection of colours.
0:04:10 > 0:04:12Now, I know I'm always banging on about magnolia,
0:04:12 > 0:04:15but I don't think I like this very much either.
0:04:15 > 0:04:17The brown and the beige combinations,
0:04:17 > 0:04:18not quite doing it for me.
0:04:18 > 0:04:23Also, you've got some rather interesting scalloped ceiling tiles
0:04:23 > 0:04:26in there, and to top it all, they might even be made of polystyrene.
0:04:26 > 0:04:28Mm-mm-mmm. Get rid of them.
0:04:28 > 0:04:30So, how can we improve it up here?
0:04:30 > 0:04:33Well, we've got a toilet, we've got a bathroom, separate,
0:04:33 > 0:04:36you could knock those into one to create a little bit more space.
0:04:36 > 0:04:40But I think the layout does work, because you've got one, two,
0:04:40 > 0:04:44three bedrooms, the third bedroom is quite small, it's a boxroom.
0:04:44 > 0:04:47And something I've noticed, up there is a loft.
0:04:47 > 0:04:50So if you did want to extend and create more space,
0:04:50 > 0:04:53another bedroom perhaps, the loft could be your answer.
0:04:56 > 0:04:58There might be enough space up there for a fourth bedroom
0:04:58 > 0:05:01and a shower room, which would be very family-friendly.
0:05:03 > 0:05:06But before we get too excited about the extension potential,
0:05:06 > 0:05:09there is one negative about this property.
0:05:10 > 0:05:12So, let's have a look in the back garden.
0:05:12 > 0:05:15Well, it's nice and spacious, you might think.
0:05:15 > 0:05:20But, oh, no. Because when I show you this, or these,
0:05:20 > 0:05:24a couple of garages, one for our house and one for next door.
0:05:24 > 0:05:27But that means the next-door neighbour's car
0:05:27 > 0:05:29could drive down this driveway at any point,
0:05:29 > 0:05:33and it wouldn't mean that your garden's terribly private.
0:05:33 > 0:05:35So, if I were buying this house,
0:05:35 > 0:05:38the first thing I would do would be to have a little chat with the
0:05:38 > 0:05:41next-door neighbour and see if it's for sale. Could you buy it?
0:05:41 > 0:05:44That could open up all sorts of options.
0:05:46 > 0:05:48If this issue could be resolved,
0:05:48 > 0:05:51then there's potential for even more space.
0:05:51 > 0:05:54But as it stands, it might even put buyers off.
0:05:54 > 0:05:58A lot hinges on this garage twosome.
0:05:58 > 0:06:00# Just the two of us
0:06:00 > 0:06:03# We can make it if we try
0:06:03 > 0:06:06# Just the two of us... #
0:06:10 > 0:06:13But what does a local estate agent think of this property,
0:06:13 > 0:06:15guided at £300,000?
0:06:17 > 0:06:19I think it's a good property, there's lots of potential.
0:06:19 > 0:06:22It does need complete refurbishment, top to bottom.
0:06:22 > 0:06:25I think definitely something could be done with the loft area,
0:06:25 > 0:06:26and possibly extending to the rear,
0:06:26 > 0:06:28if you're really wanting to spend the money.
0:06:28 > 0:06:31But it's a lovely proportioned house.
0:06:31 > 0:06:33So it all seems quite positive.
0:06:33 > 0:06:36But what could it be worth kept as a three-bed?
0:06:36 > 0:06:38Once renovated as a three-bed,
0:06:38 > 0:06:42this property would sell for approximately £425,000.
0:06:42 > 0:06:46So, even if renovation costs are, say, 30 grand,
0:06:46 > 0:06:49if you got it for anything like the guide price of 300,
0:06:49 > 0:06:52there could be a pretty profit on this.
0:06:52 > 0:06:54But would there be a larger potential profit
0:06:54 > 0:06:56in making the house bigger?
0:06:57 > 0:07:00This property as a four-bed, extending into the loft with an en-suite,
0:07:00 > 0:07:02making two bathrooms, and out to the back,
0:07:02 > 0:07:05would sell for approximately £475,000.
0:07:05 > 0:07:08But depending on finish, possibly up to £490,000.
0:07:08 > 0:07:11Yes, it's dated and not without its quirks,
0:07:11 > 0:07:16but with some TLC and a bit of modernisation, well,
0:07:16 > 0:07:19I think this could be a lovely home for someone.
0:07:19 > 0:07:22Who agreed? Let's head to auction and find out.
0:07:24 > 0:07:28Three-bedroom semidetached house with garage.
0:07:28 > 0:07:30350 anywhere? 350...?
0:07:30 > 0:07:32Turn it round the other way, 275.
0:07:32 > 0:07:35We've seen what flats have been going round this area for.
0:07:35 > 0:07:37275? 275.
0:07:37 > 0:07:39275 at the back of the room.
0:07:39 > 0:07:41276...
0:07:41 > 0:07:44This lot came towards the end of the auction,
0:07:44 > 0:07:47and although the auctioneer had to start well below the guide price,
0:07:47 > 0:07:52it gradually picked up, and we rejoin the bidding at 310,000.
0:07:52 > 0:07:54310, 311...
0:07:54 > 0:07:58312, 313, 314,
0:07:58 > 0:08:02315, 316, 317, 318,
0:08:02 > 0:08:06319, 320, 321...
0:08:06 > 0:08:08No? 320.
0:08:08 > 0:08:09321 anywhere?
0:08:09 > 0:08:12I've got 320 for the first,
0:08:12 > 0:08:14320 for the second,
0:08:14 > 0:08:19320 for the third and final time...
0:08:19 > 0:08:22Sold, 320. Well bought, sir.
0:08:24 > 0:08:29The successful bid of 320,000 came from property developer Alex.
0:08:31 > 0:08:33He met with Lucy to tell her about the plans
0:08:33 > 0:08:35for his latest acquisition.
0:08:36 > 0:08:38- Alex, congratulations.- Thank you.
0:08:38 > 0:08:40So, what was it like for you in the auction room?
0:08:40 > 0:08:42- It was a little bit nerve-racking at first.- Yeah.
0:08:42 > 0:08:45- I've bought a few at auction before...- Right.
0:08:45 > 0:08:47But every time it still gets the old ticker going.
0:08:47 > 0:08:50So, tell me a little bit about yourself. Is this what you've always done?
0:08:50 > 0:08:52I used to work in the oil and gas industry,
0:08:52 > 0:08:54and then about four years ago,
0:08:54 > 0:08:56I decided to have a drastic career change,
0:08:56 > 0:09:00and headed straight for... Headfirst into the property world.
0:09:00 > 0:09:03So, what property number is this one now?
0:09:03 > 0:09:05This one is number nine.
0:09:05 > 0:09:09- Number nine?!- Yes.- In four years. So, what was it about this house
0:09:09 > 0:09:11that you liked enough to want to bid for it?
0:09:11 > 0:09:14At the time, I actually viewed about 20 different properties.
0:09:14 > 0:09:16Hold on a minute, 20 properties?!
0:09:16 > 0:09:18- Yeah.- You must have had quite a busy month!
0:09:18 > 0:09:22- 20?!- I did, I pretty much spent every day driving around London,
0:09:22 > 0:09:24looking at various different properties.
0:09:24 > 0:09:27I'm detecting the northern accent, and my next question was,
0:09:27 > 0:09:29- are you a Crystal Palace fan? - No, no!
0:09:29 > 0:09:33I'm not going to say who I support, but it's certainly not Palace!
0:09:33 > 0:09:34But you've bought a fabulous house,
0:09:34 > 0:09:37- but you're right on top of the stadium.- Right next to the stadium.
0:09:37 > 0:09:39Now, did you know that before you viewed it?
0:09:39 > 0:09:42And when you were here, did you know how close you were?
0:09:42 > 0:09:44Yeah, because when I viewed it, I saw the ground, obviously,
0:09:44 > 0:09:47and I've been there before to watch the team I support.
0:09:47 > 0:09:50So, what do you plan to do here, and how are you going to add the value?
0:09:50 > 0:09:52So, it'll be a full refurbishment.
0:09:52 > 0:09:57- OK. Yep.- Strip it all back to basics, and then,
0:09:57 > 0:10:02obviously, downstairs will be, at the moment, no layout change.
0:10:02 > 0:10:04- Oh?- So, literally, straightforward refurbishment.
0:10:04 > 0:10:08- I may open it up to open up the kitchen.- Yes!
0:10:08 > 0:10:10And make a dining kitchen area.
0:10:10 > 0:10:13So, I talked about that, and I thought that initially.
0:10:13 > 0:10:15But obviously I'm guessing that is a structural wall,
0:10:15 > 0:10:17- that you'll need to put a beam across...- Yeah.
0:10:17 > 0:10:19You know, you've got the added expense with that.
0:10:19 > 0:10:22Is it because of the expense that you might not do it?
0:10:22 > 0:10:25If I decide to extend at the back, it won't be required,
0:10:25 > 0:10:27because you'll have the space at the back.
0:10:27 > 0:10:29I totally agree, I think if you are going to extend out,
0:10:29 > 0:10:31you won't need to do that, but if you're not,
0:10:31 > 0:10:33I definitely think you do need to do that.
0:10:33 > 0:10:36It is my intention to try and buy the garage at the back.
0:10:36 > 0:10:40If I buy the garage at the back and get rid of the shared access there, it really opens up the property.
0:10:40 > 0:10:43- Absolutely.- Potential there. - I mean, that would be the idea,
0:10:43 > 0:10:45if you can chat to the neighbours
0:10:45 > 0:10:47and try and agree a price and buy that.
0:10:47 > 0:10:49Exactly. That's my intention at the minute.
0:10:49 > 0:10:53Now, what about these, erm, lovely brown double-glazed windows?
0:10:53 > 0:10:55- They're going.- How do we feel about that?- They're going, yes.
0:10:55 > 0:10:58- They're not a fave of mine, I have to admit.- No, no. They're going to get changed.
0:10:58 > 0:11:01- Yeah, it's got to be white, hasn't it, really?- Absolutely.
0:11:01 > 0:11:03Now, what about the upstairs?
0:11:03 > 0:11:05Initial plan at the moment is to...
0:11:05 > 0:11:08try and retain the three bedrooms upstairs.
0:11:08 > 0:11:10I'm going to do a loft conversion,
0:11:10 > 0:11:14and hopefully create another bedroom-bathroom up there.
0:11:14 > 0:11:16Where you've got the separate toilet,
0:11:16 > 0:11:18- that would be the staircase... - Stairs that turn.- Yeah, going up.
0:11:18 > 0:11:22And then in the back bedroom there's a water tank, which is going to go.
0:11:22 > 0:11:25So maybe nick a little bit of space from that back bedroom
0:11:25 > 0:11:28- for the toilet on that.- And how involved do you get in it?
0:11:28 > 0:11:30Do you have a team of builders and just project-manage,
0:11:30 > 0:11:32or do you actually get involved?
0:11:32 > 0:11:34I'll be on site every day, and on this one in particular,
0:11:34 > 0:11:38I will do as much as I can to try and keep labour costs down.
0:11:38 > 0:11:41So, what sort of budget have you got in mind for the work?
0:11:41 > 0:11:43- 45,000.- Right. OK.
0:11:43 > 0:11:46I was going to say more in the region of 25 to 30.
0:11:46 > 0:11:48Including the loft conversion?
0:11:48 > 0:11:50No... I didn't have in my mind
0:11:50 > 0:11:53- it was worth doing the loft at this stage.- Right, OK.
0:11:53 > 0:11:56So I probably would've left that for somebody else to do.
0:11:56 > 0:12:00From my point of view, in terms of sell-on and potential profit,
0:12:00 > 0:12:02it's definitely worth doing the loft conversion.
0:12:02 > 0:12:05How much do you think you'd like to market it for once it's done up?
0:12:05 > 0:12:10- I'm hoping around about the 450, 475 mark.- OK.
0:12:10 > 0:12:13The spec I'll do it to might push it to 475.
0:12:13 > 0:12:16So, what is the spec? Tell me, explain your style
0:12:16 > 0:12:19- and colour schemes and stuff. - Erm, fairly neutral.
0:12:19 > 0:12:23- Yeah.- But quite a high finish spec in terms of, erm...
0:12:23 > 0:12:26The flooring, I'll go for, like solid oak flooring.
0:12:26 > 0:12:29- Lovely.- Yeah. And the kitchen will be high gloss.
0:12:29 > 0:12:33Possibly granite worktops, not sure yet, might just go for solid oak.
0:12:33 > 0:12:36Yeah, and just, you know, a good finish throughout.
0:12:36 > 0:12:39So, let's talk timescales now. How long do you think this will take?
0:12:39 > 0:12:42This one I think will be about four and a half months.
0:12:42 > 0:12:45See, now, I'll have a bet with you on that, because I bet it doesn't.
0:12:45 > 0:12:48- You don't think...- No! - Let's have a bet.- I think it'll easily be six months!
0:12:48 > 0:12:51- Cup of coffee.- 45 grand, then. And six months!
0:12:51 > 0:12:55- 45 grand and four and a half months. - I love it!
0:12:55 > 0:12:57- Good luck.- See you in four and a half months.
0:12:57 > 0:12:59Oh, it might be six!
0:13:00 > 0:13:03So, Alex has decisions to make, and, well, issues to overcome.
0:13:03 > 0:13:08But most importantly, what will happen about buying that garage?
0:13:08 > 0:13:10Join me later on in the programme,
0:13:10 > 0:13:12and you can find out how it all goes.
0:13:16 > 0:13:19DION: I'm in Cumbria today, in the city of Carlisle.
0:13:19 > 0:13:24It was here in December 2015 where severe flooding engulfed large areas
0:13:24 > 0:13:27after torrential rain from Storm Desmond
0:13:27 > 0:13:29caused local rivers to flood.
0:13:29 > 0:13:33Now, nearly one year on, the water may have gone,
0:13:33 > 0:13:35but the damage is still evident.
0:13:35 > 0:13:39The property I'm here to see is unfortunately one of those hit
0:13:39 > 0:13:41by the recent floods here in Carlisle.
0:13:41 > 0:13:45On a positive note, it's in a great location,
0:13:45 > 0:13:48it's only five minutes' walk from the city centre.
0:13:48 > 0:13:52And here it is, it is a two-bedroom terraced house
0:13:52 > 0:13:56with a reasonable guide price of £50,000 to £60,000.
0:13:56 > 0:13:59Let's get in and see what you get for your money.
0:13:59 > 0:14:02At first glance, all looks normal on the outside.
0:14:06 > 0:14:10Wow, this has been hit hard by the water.
0:14:11 > 0:14:16If I just have a look into the first reception room there, even in here,
0:14:16 > 0:14:18the plaster's been taken off
0:14:18 > 0:14:20all the way up here.
0:14:20 > 0:14:23I'm six foot two and there's no plaster at all.
0:14:23 > 0:14:24This must be six foot four.
0:14:24 > 0:14:26This has all been taken back to bare brick.
0:14:26 > 0:14:31There is a fireplace there, but just a hole for a fireplace.
0:14:31 > 0:14:33Not a bad-sized first reception room, though.
0:14:33 > 0:14:36You've got a bit of storage under the stairs,
0:14:36 > 0:14:38into the second reception room.
0:14:38 > 0:14:41And it's just the same. Back to bare brick again.
0:14:41 > 0:14:45You've got a nice, solid, er, fireplace here,
0:14:45 > 0:14:47but not the original.
0:14:47 > 0:14:49This would've been put on at a later date.
0:14:49 > 0:14:52If you look here, that's the original brickwork there,
0:14:52 > 0:14:58and then you've got this big stone lintel right there as well.
0:14:58 > 0:15:00There might be a nice fireplace, original fireplace,
0:15:00 > 0:15:03behind there somewhere. And...
0:15:03 > 0:15:11quite rare to have floorboards in a flooded property.
0:15:11 > 0:15:15Every flooded property needs to have an official drying-out certificate.
0:15:15 > 0:15:17So, first thing,
0:15:17 > 0:15:19find out if everything underneath these floorboards
0:15:19 > 0:15:22has been checked and properly treated.
0:15:24 > 0:15:25And a little bit further down here,
0:15:25 > 0:15:30we have got the kitchen at the end of the downstairs.
0:15:30 > 0:15:33Good-sized kitchen, no kitchen in here at all. Obviously
0:15:33 > 0:15:36it must have been affected by the floods so badly
0:15:36 > 0:15:38they've ripped it all out.
0:15:38 > 0:15:40You can see all the pipework, as well.
0:15:40 > 0:15:43Two big windows, letting lots of light in.
0:15:43 > 0:15:45It's not a bad-sized room,
0:15:45 > 0:15:49and it's nice sometimes to be able to start from scratch in a kitchen.
0:15:49 > 0:15:52Yes, it doesn't look very pretty down here at all,
0:15:52 > 0:15:54but I do like the layout.
0:15:58 > 0:16:03Yes, it's not pretty, but really, it looks a lot worse than it is.
0:16:03 > 0:16:07It offers a chance to check out electrics and reposition walls,
0:16:07 > 0:16:09if you're looking to reconfigure.
0:16:09 > 0:16:10But I'm hoping,
0:16:10 > 0:16:13like some other flood-damaged Carlisle properties I've seen,
0:16:13 > 0:16:16that upstairs has remained unscathed.
0:16:20 > 0:16:22OK, upstairs to the two bedrooms,
0:16:22 > 0:16:24and the first one's a good size, actually.
0:16:24 > 0:16:27It's got a nice original fireplace there.
0:16:27 > 0:16:31And across the hallway, you've got the second bedroom.
0:16:31 > 0:16:35Maybe slightly smaller, but they have got some fitted wardrobes,
0:16:35 > 0:16:37not to everybody's liking, I know,
0:16:37 > 0:16:40but I think they've made good use of the space in there.
0:16:40 > 0:16:44But the bedrooms aren't the star of the show when it comes to upstairs.
0:16:44 > 0:16:46Check out the end of the hallway.
0:16:49 > 0:16:53And here we have an upstairs bathroom.
0:16:53 > 0:16:58But this is a huge family bathroom, in really good condition.
0:16:58 > 0:17:01You've got a freestanding bath, you've got a shower,
0:17:01 > 0:17:03and it's tiled throughout.
0:17:03 > 0:17:07Even if you wanted to rent this, or sell it, or keep it yourself,
0:17:07 > 0:17:10you wouldn't have to do a thing in here at all.
0:17:10 > 0:17:12This is some bathroom,
0:17:12 > 0:17:16and suggests how nice this house must have been before the flood.
0:17:16 > 0:17:19But I'm an optimist, and it can be good again.
0:17:19 > 0:17:23The bare bones are all here - good-sized rooms, decent layout,
0:17:23 > 0:17:28there's even some outside space with a secluded back garden.
0:17:28 > 0:17:30However, taking on a property like this means
0:17:30 > 0:17:33you have to do your homework.
0:17:33 > 0:17:36You can future-proof the house with anti-flood measures,
0:17:36 > 0:17:39like concrete floors and one-way water valves.
0:17:39 > 0:17:42But the financial side of things can be difficult, too -
0:17:42 > 0:17:44getting a loan, for one.
0:17:44 > 0:17:47And while there are measures for owner-occupiers to get government
0:17:47 > 0:17:51assistance with insurance, landlords are not covered.
0:17:51 > 0:17:55To get an idea of what this could mean for house prices,
0:17:55 > 0:17:57we asked along a local estate agent.
0:17:58 > 0:18:00It's a super house, it really is.
0:18:00 > 0:18:03There's lots of these terraced properties up and around this area
0:18:03 > 0:18:06in the city. They're very popular, but it does need a bit of work.
0:18:06 > 0:18:11It needs, obviously, all the flood prevention measures put in place.
0:18:11 > 0:18:14But it is buyer beware - it could happen again.
0:18:14 > 0:18:17Whether it will or not, we don't really know yet.
0:18:17 > 0:18:20Mmm. Uncertainty is never good,
0:18:20 > 0:18:23and always makes banks and lenders nervous.
0:18:23 > 0:18:28So, does he have any thoughts on the end value of a refurbished house
0:18:28 > 0:18:30with flood prevention measures in place?
0:18:30 > 0:18:33It's difficult to value these properties because, currently,
0:18:33 > 0:18:35there have not been any that have resold,
0:18:35 > 0:18:37once they've been refurbed after the flood.
0:18:37 > 0:18:40We don't know about the mortgageability of these houses,
0:18:40 > 0:18:42what the banks are going to say about it.
0:18:42 > 0:18:44And until some start to sell,
0:18:44 > 0:18:46it's quite difficult to really speculate
0:18:46 > 0:18:48as to what they might actually be worth.
0:18:50 > 0:18:55I do know that this very house sold for 115 grand in 2012,
0:18:55 > 0:18:59which does predate the recent flood and some downturn in the market.
0:18:59 > 0:19:04Even so, that guide price of 50 to 60 grand suggests that someone
0:19:04 > 0:19:06will be taking a pretty big financial loss -
0:19:06 > 0:19:08a sober reminder
0:19:08 > 0:19:13that property prices can be affected by many different circumstances.
0:19:13 > 0:19:17Assuming the insurance situation doesn't put a landlord off,
0:19:17 > 0:19:19how much could this house rent for?
0:19:20 > 0:19:23Once renovated to a good standard, a property like this,
0:19:23 > 0:19:26it's quite a spacious house, two good-sized bedrooms, nice bathroom,
0:19:26 > 0:19:30should rent for somewhere in the region of about £500 per calendar month.
0:19:34 > 0:19:36It's clear to see what damage the floods
0:19:36 > 0:19:38have caused to this house.
0:19:38 > 0:19:41We're back to the bare brick, and we haven't even got a kitchen in.
0:19:41 > 0:19:43So there's a fair bit of work that needs to be done downstairs.
0:19:43 > 0:19:45But I do like the layout.
0:19:45 > 0:19:49Upstairs, though, it's just a cosmetic touch-up for me.
0:19:49 > 0:19:52I think this is a good project to take on.
0:19:52 > 0:19:55Let's see who agreed with me when it went under the hammer.
0:19:57 > 0:19:59OK, lot seven, ladies and gentlemen.
0:19:59 > 0:20:03Mid-terraced house, good location, this. Need a bid, 45.
0:20:03 > 0:20:06At... 45 here. At 45 bid now.
0:20:06 > 0:20:09At £45,000 in one.
0:20:09 > 0:20:1246, 47. 47 bid, 48.
0:20:12 > 0:20:1449, 49 bid. 50,
0:20:14 > 0:20:1651, 52,
0:20:16 > 0:20:1853, 54,
0:20:18 > 0:20:2055, 56...
0:20:20 > 0:20:22You're out. You're in, sir.
0:20:22 > 0:20:24At £55,000, then. First time.
0:20:24 > 0:20:27Second time, are you sure?
0:20:27 > 0:20:29I'm selling over here at £55,000.
0:20:29 > 0:20:31All done?
0:20:31 > 0:20:33Well done, sir.
0:20:33 > 0:20:36Out of sight of our camera, and for 55 grand,
0:20:36 > 0:20:41the successful bidders were local Carlisle couple Ron and Denise.
0:20:41 > 0:20:42They live nearby
0:20:42 > 0:20:46and had no illusions about what the state of the house would be,
0:20:46 > 0:20:49and were only too aware of what happened in the area.
0:20:50 > 0:20:53Denise, nice to meet you. Congratulations.
0:20:53 > 0:20:56Ron, good to meet you, too, sir. And well done.
0:20:56 > 0:20:58Firstly, before we go on to the house,
0:20:58 > 0:21:00tell us a bit about yourself, your day jobs.
0:21:00 > 0:21:02Day jobs, we're self-employed,
0:21:02 > 0:21:05we run a couple of pubs and restaurants,
0:21:05 > 0:21:07but we've done new builds,
0:21:07 > 0:21:10we've built our own house a couple of times for ourselves.
0:21:10 > 0:21:15And we've got a portfolio of about 30 properties now.
0:21:15 > 0:21:19So, we're quite used to the good, the bad and the ugly.
0:21:19 > 0:21:20DION LAUGHS
0:21:20 > 0:21:22- Where does this one fall? - In the middle.
0:21:22 > 0:21:26- In the middle, is it?- In the middle. We've had a lot worse.- Oh, have you?
0:21:26 > 0:21:29- Yeah.- Tell us what made you want to buy this house.
0:21:29 > 0:21:32It was bought specifically for our granddaughter,
0:21:32 > 0:21:35because it's that difficult to get on the property ladder now,
0:21:35 > 0:21:39so we're trying to sort out each grandchild,
0:21:39 > 0:21:42as they're coming to that age, with a property.
0:21:42 > 0:21:46Fantastic. So, what was it about this one that made you both think,
0:21:46 > 0:21:47I tell you what, that would fit for...?
0:21:47 > 0:21:50- What's your granddaughter's name? - Our granddaughter's Tyne.
0:21:50 > 0:21:53- Tyne.- Tyne.- What made you think this is perfect for Tyne?
0:21:53 > 0:21:55Er, she's 18,
0:21:55 > 0:22:00she wants to be on her own, but not too far from family.
0:22:00 > 0:22:03- OK.- And we just live two minutes away across the road.
0:22:03 > 0:22:07So she'll be on her own, but not on her own.
0:22:07 > 0:22:11Tyne, in fact, also works with her grandparents in their cafe bar,
0:22:11 > 0:22:16so there'll be plenty of discussions about what she might want here.
0:22:16 > 0:22:19I'm sure Ron and Denise will point her in the right direction.
0:22:19 > 0:22:20But what is first on the agenda?
0:22:20 > 0:22:23The property, as you see, it is how we bought it,
0:22:23 > 0:22:26so we don't know whether it's been dried out right yet.
0:22:26 > 0:22:30We need to check everything's right - there's no rot,
0:22:30 > 0:22:33make sure it's dry, and then just get on with putting it back together, really.
0:22:33 > 0:22:34What is your budget, then?
0:22:34 > 0:22:36Denise, what's your budget to get this turned around?
0:22:36 > 0:22:40We think about 15 should do it.
0:22:40 > 0:22:42From start to fin... So, that's an experienced...
0:22:42 > 0:22:43- Yeah.- Yeah.- ..estimate.
0:22:43 > 0:22:46Is this something you two are going to get your hands dirty doing,
0:22:46 > 0:22:48or because you've got properties yourself,
0:22:48 > 0:22:50do you have a team of builders that you...?
0:22:50 > 0:22:51- We have a team of contacts, really. - OK.
0:22:51 > 0:22:56People that we've used for 25 years, you know, really good tradesmen.
0:22:56 > 0:22:59Denise does all the interior design kind of side of it.
0:22:59 > 0:23:02- The nice bit. - Picks the kitchen, etc.
0:23:02 > 0:23:03I do all the mucky end of it.
0:23:03 > 0:23:05DION LAUGHS
0:23:06 > 0:23:10With Ron and Denise buying the property for granddaughter Tyne,
0:23:10 > 0:23:13this does fall into the category of buy-to-let.
0:23:13 > 0:23:16So, currently, they can't get flood insurance on the building.
0:23:17 > 0:23:21It's a risk, but a risk Ron and Denise were prepared to take
0:23:21 > 0:23:24given the £55,000 purchase price.
0:23:24 > 0:23:27They are hoping to get the house ready for Tyne in three months,
0:23:27 > 0:23:30along with finishing off another project a little closer to home.
0:23:32 > 0:23:35Tell me how, just in general, about the floods?
0:23:35 > 0:23:37It was horrendous.
0:23:37 > 0:23:41- We were flooded personally. We only live...- In your house?
0:23:41 > 0:23:44Yeah, yeah. We only live a minute's walk away from here.
0:23:44 > 0:23:46Erm...
0:23:46 > 0:23:514ft of water came in very quickly, and, well, Denise was up to here.
0:23:51 > 0:23:56We managed to move the vehicles, three vehicles, away before.
0:23:56 > 0:23:57- Just in time?- So, we saved those.
0:23:57 > 0:24:01Yeah. And we tried our best to move some of our personal belongings,
0:24:01 > 0:24:04- but...- But we still lost a lot.
0:24:04 > 0:24:06But we've got there, and we're now starting...
0:24:06 > 0:24:10We've plastered, floor's in, and just about ready to get it
0:24:10 > 0:24:13finished within the next month or so.
0:24:13 > 0:24:17It's amazing how you're having to deal with your situation personally,
0:24:17 > 0:24:20but you've still taken the time to nip to the auction
0:24:20 > 0:24:22and find a property for your granddaughter.
0:24:22 > 0:24:25Well, you've got to turn disasters into an opportunity, I think, if you can.
0:24:25 > 0:24:27On this project, I wish you all the best. I really do.
0:24:27 > 0:24:29- Thank you very much. Thank you. - Good luck to you.
0:24:29 > 0:24:32- Thank you.- Make it a nice home for Tyne, hey?
0:24:32 > 0:24:34- Yep, will do.- Good on you.
0:24:34 > 0:24:36What a really nice couple -
0:24:36 > 0:24:39with experience in dealing with a project like this.
0:24:39 > 0:24:42Ron has got to double-check the situation
0:24:42 > 0:24:44with the dried-out certificate.
0:24:44 > 0:24:46Once that's all done and dusted,
0:24:46 > 0:24:50I think Denise might just stretch that budget a little bit more,
0:24:50 > 0:24:52because it's for their granddaughter Tyne.
0:24:52 > 0:24:55You can find out how they get on later in the programme.
0:24:57 > 0:24:59Coming up - in Alvaston, Derby,
0:24:59 > 0:25:02I don't think this design is "suite" at all.
0:25:02 > 0:25:06They've certainly fitted - may fit - a bath in here.
0:25:08 > 0:25:11And in Carlisle, Ron and Denise's builder feels the hammer effect.
0:25:11 > 0:25:15We had to put pressure on them to get the job done,
0:25:15 > 0:25:16ready for yous guys coming back.
0:25:20 > 0:25:24Back now to South Norwood in the London Borough of Croydon,
0:25:24 > 0:25:26where Lucy saw a three-bed semi.
0:25:27 > 0:25:30Now, two of something is often better than one,
0:25:30 > 0:25:32but that was not the case here.
0:25:34 > 0:25:35A couple of garages!
0:25:35 > 0:25:38One for our house, and one for next door.
0:25:38 > 0:25:42But that means the next-door neighbour's car could drive down
0:25:42 > 0:25:44this driveway at any point.
0:25:44 > 0:25:47And it wouldn't mean that your garden's terribly private.
0:25:47 > 0:25:50So, if I were buying this house, the first thing I would do
0:25:50 > 0:25:53would be to have a little chat with the next-door neighbour
0:25:53 > 0:25:54and see if it's for sale.
0:25:56 > 0:25:59Fortunately, new owner and property developer Alex,
0:25:59 > 0:26:03who paid £320,000 for this lot, agreed with Lucy,
0:26:03 > 0:26:07as getting rid of it would have made room for an extension at the back -
0:26:07 > 0:26:10and that wasn't all they agreed on.
0:26:10 > 0:26:11- I may open it up...- Yes!
0:26:11 > 0:26:14..to open up the kitchen and maybe a dining-kitchen area.
0:26:14 > 0:26:16So, I talked about that, and I thought that initially,
0:26:16 > 0:26:19but, obviously, I'm guessing that is a structural wall,
0:26:19 > 0:26:21- and that you'll need to put a beam across, and...- Yeah.
0:26:21 > 0:26:23..you've got the added expense with that.
0:26:23 > 0:26:26Is it because of the expense that you might not do it?
0:26:26 > 0:26:27If I decide to extend at the back,
0:26:27 > 0:26:30it won't be required because you'll have the space at the back.
0:26:30 > 0:26:33I totally agree. I think if you are going to extend out,
0:26:33 > 0:26:34you don't need to do that.
0:26:34 > 0:26:38- But if you're not, I definitely think you do need to do that.- Yeah.
0:26:38 > 0:26:40Well, with a right old agree-fest going on,
0:26:40 > 0:26:45the only issues they disagreed on were Alex's intention to convert
0:26:45 > 0:26:49the loft to a fourth bedroom, and his timescale.
0:26:49 > 0:26:52This one I think will be about four and a half months.
0:26:52 > 0:26:55Yeah. Now, I'll have a bet with you on that, because I bet it doesn't!
0:26:55 > 0:26:57You don't think four and a half months?
0:26:57 > 0:26:59- No! I think it'll easily be six months!- Cup of coffee!
0:27:01 > 0:27:03So, who's buying the coffee?
0:27:03 > 0:27:07We return seven months later to see how he got on.
0:27:07 > 0:27:11The front of the house is looking much smarter.
0:27:11 > 0:27:13There's a new roof, new door,
0:27:13 > 0:27:17and those dated brown windows have gone, too.
0:27:20 > 0:27:23Inside, there have been some layout changes.
0:27:23 > 0:27:27Where once there were two rooms accessed in the hall,
0:27:27 > 0:27:30there is now only one.
0:27:30 > 0:27:33The large, double-aspect living room has been refreshed.
0:27:34 > 0:27:38But the star of the show is the new open-plan layout,
0:27:38 > 0:27:40with kitchen and living space.
0:27:44 > 0:27:47That dated yellow and pine combo is gone,
0:27:47 > 0:27:50and has been replaced with a really stylish kitchen,
0:27:50 > 0:27:53with sleek, modern units and high-end fittings...
0:27:58 > 0:28:02..all opening out to the garden with a set of French doors.
0:28:02 > 0:28:04It's looking very nice indeed.
0:28:05 > 0:28:09But, clearly, that extension is nowhere to be seen, so what happened?
0:28:11 > 0:28:15When I had a bit more time to look into the numbers, the area,
0:28:15 > 0:28:18the ceiling price on this street, which there is,
0:28:18 > 0:28:22it wasn't viable to go ahead with the rear extension as well.
0:28:22 > 0:28:25I knew I had to sort of maximise the living space downstairs,
0:28:25 > 0:28:30so I made a decision to go with open-plan living downstairs,
0:28:30 > 0:28:33so all the walls and everything was removed there.
0:28:33 > 0:28:36And then upstairs, the layout pretty much stayed the same,
0:28:36 > 0:28:39just I've nicked a little bit of space from each room
0:28:39 > 0:28:41to accommodate for certain things.
0:28:41 > 0:28:45Alex has still got some snagging to sort out, but it's looking great.
0:28:45 > 0:28:48The separate WC and bathroom have been combined
0:28:48 > 0:28:52to create a lovely contemporary wet room.
0:28:52 > 0:28:54And each of the three bedrooms has had a face-lift.
0:28:56 > 0:28:58But there is an important new addition.
0:29:01 > 0:29:03So, despite Lucy's best efforts,
0:29:03 > 0:29:06Alex has stuck with his plans for a loft conversion,
0:29:06 > 0:29:08and it looks fantastic.
0:29:09 > 0:29:11Not only is it an extra double bedroom,
0:29:11 > 0:29:14but it has an en-suite for a touch of luxury.
0:29:15 > 0:29:17The loft conversion itself,
0:29:17 > 0:29:19we didn't actually go through a planning process.
0:29:19 > 0:29:21It was done under permitted development.
0:29:21 > 0:29:24So, I could actually start the work on that straightaway,
0:29:24 > 0:29:27as soon as the architectural drawings were approved.
0:29:27 > 0:29:29When we started to build the stairs,
0:29:29 > 0:29:31we realised that there wasn't enough height
0:29:31 > 0:29:33in between the first-floor stairs and then into the loft.
0:29:33 > 0:29:35So, we had to move them back a little bit,
0:29:35 > 0:29:38which meant we had to steal some space from the small bedroom
0:29:38 > 0:29:40at the front. So that was a bit disappointing because now
0:29:40 > 0:29:43it's really a sort of study/nursery rather than a bedroom.
0:29:43 > 0:29:48But other than that, it's been fairly straightforward.
0:29:48 > 0:29:52It's a shame to lose height on that fourth bedroom, but rules are rules,
0:29:52 > 0:29:55and you need that regulation headroom of 1.9 metres
0:29:55 > 0:29:57in a loft conversion staircase.
0:29:57 > 0:29:59But the burning question is,
0:29:59 > 0:30:04has Alex managed to sort that issue with the shared access?
0:30:04 > 0:30:08I'm actually in the process of trying to buy the house next door.
0:30:08 > 0:30:10If I'm successful with the offer,
0:30:10 > 0:30:12then obviously the garage belongs to me,
0:30:12 > 0:30:15so then the shared access goes away.
0:30:15 > 0:30:18That is a novel way to do it.
0:30:18 > 0:30:20Why just buy the garage when you can buy the whole house?
0:30:21 > 0:30:23Alex has done a great job,
0:30:23 > 0:30:28and while he's gone over his 45 grand budget by 10,000,
0:30:28 > 0:30:30he does have a lovely house.
0:30:30 > 0:30:34And Lucy was right about that timescale - sort of.
0:30:34 > 0:30:37The project itself has been about five and a half months.
0:30:37 > 0:30:40I've had some personal commitments in between -
0:30:40 > 0:30:43best man at my friend's wedding and a holiday booked and things,
0:30:43 > 0:30:45so it means I lost about a month there.
0:30:45 > 0:30:48So, the project itself has been about five and a half months.
0:30:48 > 0:30:50Again, a little bit longer than expected,
0:30:50 > 0:30:53but it ties in with the extra work.
0:30:53 > 0:30:56So, all things considered, it's not too bad.
0:30:57 > 0:31:01Not bad at all for what Alex has achieved here.
0:31:01 > 0:31:02But let's see what the experts think.
0:31:04 > 0:31:06We invited along two local agents
0:31:06 > 0:31:10to hear their opinions on this property,
0:31:10 > 0:31:12starting with the agent who saw it originally.
0:31:16 > 0:31:19The owner has done a fantastic job. It looks really good throughout.
0:31:19 > 0:31:22I think the open-plan layout on the ground floor works extremely well.
0:31:22 > 0:31:23Great for entertaining.
0:31:23 > 0:31:26I love the wet room feature they put in there as well.
0:31:26 > 0:31:29So, it's something different, and people would really appreciate that.
0:31:29 > 0:31:31I think they've done a nice job on the refurb, really.
0:31:31 > 0:31:32A couple of little nice touches,
0:31:32 > 0:31:36including the wet rooms and the nice glass effects.
0:31:36 > 0:31:38I think the owner has done really well by going up into the loft and
0:31:38 > 0:31:41creating an extra bedroom, making it a three double-bedroom house
0:31:41 > 0:31:43with an extra bathroom. That works well.
0:31:43 > 0:31:45They have lost a bit of space at the front of the property
0:31:45 > 0:31:48in that small bedroom, but I don't think it matters that much.
0:31:48 > 0:31:50I think the loft conversion does add value,
0:31:50 > 0:31:52especially because the third bedroom is quite small,
0:31:52 > 0:31:55and now you've got a substantial third bedroom and the en-suite.
0:31:55 > 0:31:58I'm not sure about the magnolia on the walls upstairs but, otherwise,
0:31:58 > 0:32:01the bathrooms look great, kitchen is perfect.
0:32:01 > 0:32:05Well, you heard it here first - not all agents love magnolia.
0:32:06 > 0:32:11Decor aside, will Alex's £375,000 investment make him a profit?
0:32:12 > 0:32:15This property would sell for approximately £490,000.
0:32:15 > 0:32:21I think this property could sell for between £500,000 and £525,000.
0:32:21 > 0:32:22A range of figures there,
0:32:22 > 0:32:27but the top estimate could see Alex with a pre-tax profit of £150,000.
0:32:27 > 0:32:30So, what does he think of those valuations?
0:32:31 > 0:32:34They're fair valuations, considering the area,
0:32:34 > 0:32:36the properties on the market at the minute.
0:32:36 > 0:32:39Ultimately, it's only worth what someone will pay for it.
0:32:39 > 0:32:43So, somewhere near that, I'll be OK with that.
0:32:43 > 0:32:48So, with this property already on the market, what's next for Alex?
0:32:48 > 0:32:50Hopefully I'll get the house next door.
0:32:50 > 0:32:52I'll find out probably in the next week or two.
0:32:52 > 0:32:55If not, back to the auctions for more of the same, I think.
0:32:58 > 0:33:02MUSIC: Galveston by Glenn Campbell
0:33:02 > 0:33:07# Galveston, oh, Galveston... #
0:33:07 > 0:33:11Galveston... No, sorry, Alvaston, is a suburb of Derby,
0:33:11 > 0:33:14three miles from the city centre,
0:33:14 > 0:33:18and its stock of decent-sized, predominantly family homes,
0:33:18 > 0:33:20offering a chance to get a good-sized property
0:33:20 > 0:33:23but at a reasonable price.
0:33:23 > 0:33:27# Galveston, oh, Galveston... #
0:33:27 > 0:33:29I can never come to Alvaston in Derbyshire
0:33:29 > 0:33:33without thinking of that Glen Campbell song. It's just, agh!
0:33:33 > 0:33:36I know it's silly, but...! What am I here to see, though?
0:33:36 > 0:33:38It's this, a three-bedroom semidetached,
0:33:38 > 0:33:40really close to the shops there,
0:33:40 > 0:33:42and looks to be in pretty good condition.
0:33:42 > 0:33:46£90,000, was the guide price. In we go!
0:33:46 > 0:33:49OK, nice little porch area there. We like that.
0:33:49 > 0:33:53And then straightaway, I'm seeing a very classic layout for this
0:33:53 > 0:33:57probably 1930s, do you think, semidetached? I think so.
0:33:57 > 0:34:00Stairs there with a bit of a return.
0:34:00 > 0:34:04A little entrance area, a very practical house - they always were.
0:34:04 > 0:34:09It gets kind of interesting here, because you have the through lounge.
0:34:09 > 0:34:12So, lounge area there, massive bay window, which is lovely,
0:34:12 > 0:34:14flooding the place with light.
0:34:14 > 0:34:16That way, a set of patio doors,
0:34:16 > 0:34:21leading out onto something which looks fairly disgusting at the back there.
0:34:21 > 0:34:22But, yeah, it's a nice feel.
0:34:22 > 0:34:24But you know what? I want to make this more,
0:34:24 > 0:34:26I want to make this even more open-plan,
0:34:26 > 0:34:30because the chaos comes when you go into here.
0:34:30 > 0:34:33Here is the kitchen. And they seem to do this -
0:34:33 > 0:34:35this is such a classic design for this kind of house.
0:34:35 > 0:34:39The kitchens are always too small.
0:34:39 > 0:34:42But there's an easy solution, and that's to take out this wall.
0:34:42 > 0:34:45Now, you'd need to put a steel joist across the top there,
0:34:45 > 0:34:48because this is obviously going to be a fairly substantial
0:34:48 > 0:34:51and supporting wall, so you don't just knock it out.
0:34:51 > 0:34:53And then completely open that up,
0:34:53 > 0:34:59put, like, a breakfast bar in there, the whole ground floor then becomes
0:34:59 > 0:35:02one big, lovely, sort of living area.
0:35:02 > 0:35:04And the house is revolutionised.
0:35:04 > 0:35:06It's nice that you've got that little bit at the back there,
0:35:06 > 0:35:09utility area, leading out to the back garden. But all in all,
0:35:09 > 0:35:13it's a house which I think has so much going for it.
0:35:13 > 0:35:17When this house was built, there were no fancy sinks or taps, or,
0:35:17 > 0:35:20well, any kitchen gadgets, actually, hence these titchy kitchens.
0:35:22 > 0:35:25But with everything we need in our kitchens nowadays,
0:35:25 > 0:35:26this simply will not do.
0:35:30 > 0:35:32So, the thing about these type of properties,
0:35:32 > 0:35:34you never quite know how big the back garden's going to be.
0:35:34 > 0:35:35Well...
0:35:36 > 0:35:38Ready? 2ft?
0:35:38 > 0:35:413ft? 50ft? 10ft? 100ft? It's massive!
0:35:41 > 0:35:45# I can see for miles and miles
0:35:45 > 0:35:52# And miles and miles and miles
0:35:52 > 0:35:55# Oh, yeah... #
0:35:55 > 0:35:59And I think it might be worth taking a smidgen of this space to build
0:35:59 > 0:36:01a rear extension, for replacing that thing at the back.
0:36:03 > 0:36:05And with off-road parking at the front,
0:36:05 > 0:36:08you can't complain about the lack of outside space.
0:36:10 > 0:36:14So, upstairs, and a little landing, small boxroom there,
0:36:14 > 0:36:17larger room towards the rear of the property there,
0:36:17 > 0:36:19and a really nice master bedroom at the front.
0:36:19 > 0:36:23None of them ensuite, but the loo is at least upstairs.
0:36:23 > 0:36:25But wow, look at this.
0:36:25 > 0:36:29They've certainly fitted - may fit - a bath in here.
0:36:31 > 0:36:33And I'm not sure they should have.
0:36:33 > 0:36:35It's all a bit of a squeeze.
0:36:35 > 0:36:38There just isn't enough room for this large bathroom suite.
0:36:41 > 0:36:44It's daft, when some of this house has loads of room.
0:36:46 > 0:36:49Actually, all the house needs is a bit of reordering,
0:36:49 > 0:36:51rethinking and squeezing.
0:36:56 > 0:37:01But what does a local property expert think would be best for this three-bed Galveston...
0:37:01 > 0:37:03Oh, darn it, done it again! ..ALVASTON house?
0:37:05 > 0:37:07If I personally owned this property,
0:37:07 > 0:37:09certainly knock through to the dining room,
0:37:09 > 0:37:12create a lovely, open-plan living kitchen-diner,
0:37:12 > 0:37:14certainly tidy the garden up,
0:37:14 > 0:37:17no extensions, keep it minimalistic.
0:37:17 > 0:37:20Yeah, that's what I would do.
0:37:20 > 0:37:25The house was guided at 90,000, but spruced up, what might it be worth?
0:37:26 > 0:37:31When renovated, I would recommend an asking price of £145,000.
0:37:31 > 0:37:34How would it fare on the rental market?
0:37:34 > 0:37:38I would feel this would likely achieve £595 per calendar month.
0:37:40 > 0:37:43Well, I have been trying to find something wrong with this place,
0:37:43 > 0:37:46and I can't. Yes, you need to do a bit of work at the back there,
0:37:46 > 0:37:48and definitely knock through the kitchen area,
0:37:48 > 0:37:52but you could transform this for 10-15 grand. It's a great house.
0:37:52 > 0:37:55Let's see who bought it when it went under the hammer.
0:37:57 > 0:38:01Lot number ten is three-bedroomed semidetached house.
0:38:01 > 0:38:04Who's got 90 on the guide price to start me?
0:38:04 > 0:38:06£90,000, I'm bid.
0:38:06 > 0:38:08At £90,000, 91 somewhere else?
0:38:08 > 0:38:10Seated at 91...
0:38:10 > 0:38:1292 behind you, 92,
0:38:12 > 0:38:1493 is bid.
0:38:14 > 0:38:15At 93, now 94.
0:38:15 > 0:38:1994, 95, 96,
0:38:19 > 0:38:23at 96... 97.
0:38:23 > 0:38:24Got you, 97.
0:38:24 > 0:38:27At 97, 98.
0:38:27 > 0:38:29I'll take 500. 97 and a half,
0:38:29 > 0:38:31make it 98, sir?
0:38:31 > 0:38:33Yes? 98.
0:38:33 > 0:38:38At 98, 5 again? At 98, it's going to get sold, no mistakes.
0:38:38 > 0:38:43At 98,000, once, twice, third chance...
0:38:43 > 0:38:45Sold at 98,000, thank you.
0:38:45 > 0:38:49So, the hammer fell at 98,000, and the successful bidder was Philip.
0:38:52 > 0:38:55Philip is based a couple of hours away in Cambridgeshire
0:38:55 > 0:38:59and this house was to be his fourth renovation project.
0:39:02 > 0:39:05- Philip, great to meet you. How are you?- I'm very well.
0:39:05 > 0:39:08Good. Well, congratulations on a nice house, actually.
0:39:08 > 0:39:11- Yep, very pleased.- Tell me why you wanted to buy it.
0:39:11 > 0:39:16Location, price, type of property, work it needs doing to it.
0:39:16 > 0:39:18Right, that's all very boom, boom, boom.
0:39:18 > 0:39:20- Are you a boom, boom, boom kind of a guy?- Yes.
0:39:20 > 0:39:23Are you a property developer or investor or...?
0:39:23 > 0:39:25I wouldn't say I'm a property developer.
0:39:25 > 0:39:28I have done properties up in the past and we have let them out.
0:39:28 > 0:39:30But I wouldn't say I'm a property developer. Not yet.
0:39:30 > 0:39:32What do you do when you're not doing this kind of stuff?
0:39:32 > 0:39:34Normally, I'm an IT director.
0:39:34 > 0:39:38- OK, wow!- So, used to running projects, fairly complex things,
0:39:38 > 0:39:41so this is just an extension of that part of my personality.
0:39:41 > 0:39:43MUSIC: Boom Boom by John Lee Hooker
0:39:43 > 0:39:45# Boom, boom, boom, boom
0:39:45 > 0:39:47# Mmm.... #
0:39:47 > 0:39:51Philip definitely seems to have transferable skills.
0:39:51 > 0:39:54He might not be a plumber or an electrician or a builder,
0:39:54 > 0:39:56but he knows how to run a project,
0:39:56 > 0:40:00and that is key to a successful property development
0:40:00 > 0:40:05along with sticking to a budget and having a clear idea of what work to carry out.
0:40:05 > 0:40:07So, tell me what you're going to do to it.
0:40:07 > 0:40:09We're going to do a small extension at the back.
0:40:09 > 0:40:11Oh, OK. Single-storey or...?
0:40:11 > 0:40:13Single-storey, just to make the kitchen a little bit bigger.
0:40:13 > 0:40:16We're going to knock through from the kitchen into this room here,
0:40:16 > 0:40:18just to create a little bit more space.
0:40:18 > 0:40:22New bathroom, redecorate throughout, tidy it up,
0:40:22 > 0:40:23tidy up the garden a little bit.
0:40:23 > 0:40:25So, fairly straightforward, really.
0:40:25 > 0:40:28So, your extension on the back is going to take the place of
0:40:28 > 0:40:30the fairly decrepit thing that's on the back at the moment?
0:40:30 > 0:40:33- Absolutely, yeah. - So, how many metres, within permitted development...?
0:40:33 > 0:40:35It's going to be three metres wide, two metres deep.
0:40:35 > 0:40:37So, it's not going to replace the existing one,
0:40:37 > 0:40:40it's going to be to the side of it, just to make the kitchen bigger.
0:40:40 > 0:40:42But doesn't need planning permission?
0:40:42 > 0:40:44- No. Does need building relations. - OK.
0:40:44 > 0:40:46Is there anything you've got experience of?
0:40:46 > 0:40:49Originally, I'm an architectural technician, so...
0:40:49 > 0:40:52- Oh, great.- ..the fabric of buildings and that isn't alien to me.
0:40:52 > 0:40:55They're the ones that actually do the drawings, aren't they?
0:40:55 > 0:40:58- Yep, absolutely. - So, are you going to do all the drawings for this?
0:40:58 > 0:41:00Not any more, I'll probably get someone else to do that.
0:41:00 > 0:41:02- Why?!- I don't have the software to do it any more.
0:41:02 > 0:41:05- Oh!- And it's quite time-consuming, so...
0:41:05 > 0:41:08Pencils and rulers and things, come on!
0:41:08 > 0:41:11I'll be doing a few sketches, I've already done some sketches, but...
0:41:11 > 0:41:13What's the budget?
0:41:13 > 0:41:15Budget's 15-18.
0:41:15 > 0:41:16- So, you paid 98 for it.- Yep.
0:41:16 > 0:41:20- Plus 15, that's puts you in approximately 115,000-ish.- Yep.
0:41:20 > 0:41:24What do you think it might be worth when you've done it?
0:41:24 > 0:41:27Hopefully, somewhere north of 135.
0:41:27 > 0:41:29OK. So you're hoping for a 20 grand-ish profit.
0:41:29 > 0:41:31Yeah.
0:41:31 > 0:41:34That's a relatively modest profit Philip is aiming at,
0:41:34 > 0:41:39given the agent's valuation of 145 grand without an extension.
0:41:39 > 0:41:42It will be interesting to see how the sums turn out,
0:41:42 > 0:41:47and Philip wants to achieve his target profit in 4-6 months.
0:41:48 > 0:41:51So, what's the end goal, then? Is it to do more of these
0:41:51 > 0:41:54and buy and sell, buy and sell, or keep a portfolio, or...?
0:41:54 > 0:41:56It's a bit of both, actually. So, it's to buy and sell,
0:41:56 > 0:41:59but also to invest in other properties to rent out
0:41:59 > 0:42:00and build our rental portfolio.
0:42:00 > 0:42:04And what would be your goal, how many - 10, 20, 50, 100?
0:42:04 > 0:42:05Maybe 10-20, something like that,
0:42:05 > 0:42:08but that'll be over a considerable period of years.
0:42:08 > 0:42:10Well, listen, congratulations, anyway. Good luck with it.
0:42:10 > 0:42:14- Thanks a lot, Martin.- Look forward to seeing how you get on.- Yeah, OK.
0:42:14 > 0:42:16Well, Philip certainly seems to know what he's doing.
0:42:16 > 0:42:18He has a project plan, boom, boom, boom,
0:42:18 > 0:42:20and I'm sure he's going to stick to it.
0:42:20 > 0:42:24How will he get on, and will he make the money he hopes for?
0:42:24 > 0:42:26You can find out later in the show.
0:42:30 > 0:42:33It's now time to go back to the two remaining properties
0:42:33 > 0:42:34to find out how the owners got on.
0:42:34 > 0:42:36Yes, will it be gold stars all round,
0:42:36 > 0:42:40or will we have to get the dreaded red pen out? Let's find out.
0:42:42 > 0:42:44Back now to the city of Carlisle,
0:42:44 > 0:42:47where the devastation caused by the flooding in 2015
0:42:47 > 0:42:48is still being tackled.
0:42:48 > 0:42:52One of the many properties which had been damaged was
0:42:52 > 0:42:56this two-bed terrace, guided between £50,000 and £60,000.
0:42:56 > 0:42:59The price indicated just how much work was needed here,
0:42:59 > 0:43:01particularly downstairs,
0:43:01 > 0:43:04where the house had been stripped back to the bare brick.
0:43:04 > 0:43:06However, it wasn't all doom and gloom.
0:43:06 > 0:43:11This is a huge family bathroom in really good condition.
0:43:11 > 0:43:15Even if you wanted to rent this or sell it or keep it yourself,
0:43:15 > 0:43:18you wouldn't have to do a thing in here at all.
0:43:19 > 0:43:22I thought the bathroom indicated that this had been
0:43:22 > 0:43:25a pretty nice house, and could be again.
0:43:25 > 0:43:29Buyers husband and wife team Ron and Denise thought so, too.
0:43:29 > 0:43:32With a large portfolio and personal experience
0:43:32 > 0:43:35of repairing their own home after the flooding,
0:43:35 > 0:43:37they weren't fazed by the scale of work here at all,
0:43:37 > 0:43:40purchasing the house for 55 grand.
0:43:40 > 0:43:45It seemed that this pair had worked out a clear division of labour.
0:43:45 > 0:43:48Denise does all the interior design kind of side of it.
0:43:48 > 0:43:50- The nice bit. - Picks the kitchen etc.
0:43:50 > 0:43:52- OK.- I do all the mucky end of it.
0:43:52 > 0:43:54DION LAUGHS
0:43:56 > 0:43:59This was a special project as, once it was complete,
0:43:59 > 0:44:02it was going to be a home for their granddaughter, Tyne.
0:44:02 > 0:44:06They had a budget of 15 grand and a timescale of 3-4 months.
0:44:08 > 0:44:11So, we've returned just under four months later,
0:44:11 > 0:44:14but did they do a grand job for their granddaughter?
0:44:25 > 0:44:28That empty space that was formerly the kitchen
0:44:28 > 0:44:29has been totally transformed,
0:44:29 > 0:44:33with a modern fitted kitchen in a contemporary black-and-white.
0:44:37 > 0:44:40The changes continued to the rest of the downstairs.
0:44:40 > 0:44:43The second reception room that was stripped back
0:44:43 > 0:44:46is now an elegant sitting room for granddaughter Tyne to enjoy.
0:44:51 > 0:44:55But looking beyond the surface, this house has had the full works,
0:44:55 > 0:44:57with new joinery, floors,
0:44:57 > 0:45:02plasterwork and full new wiring and plumbing throughout.
0:45:02 > 0:45:07Ron and Denise have also added flood-proof front and back doors,
0:45:07 > 0:45:11nonreturn vents and have waterproofed the exterior brickwork.
0:45:21 > 0:45:25The front room that was left devastated by the flood is now
0:45:25 > 0:45:29a cosy but stylish dining room, with a feature wall in peacock blue.
0:45:30 > 0:45:34While you would never know this lovely home was ravaged by flooding,
0:45:34 > 0:45:35where did they start?
0:45:38 > 0:45:41The drying out of the property, erm,
0:45:41 > 0:45:44entails introducing heat to the premises.
0:45:44 > 0:45:47After that, introduced dehumidification
0:45:47 > 0:45:48for a couple of months.
0:45:48 > 0:45:55The process also involves removal of any wet or damaged timber work,
0:45:55 > 0:45:57because as it dries, it will twist,
0:45:57 > 0:46:02so it's better being replaced with tanalised or treated timber,
0:46:02 > 0:46:05which protects it from any future flooding.
0:46:07 > 0:46:08It's clear they know their stuff,
0:46:08 > 0:46:10and while they didn't do the work themselves,
0:46:10 > 0:46:14they got local contractors in, with Ron overseeing the project.
0:46:17 > 0:46:19It's not their first flood-damaged property,
0:46:19 > 0:46:21so what were the challenges with this one?
0:46:23 > 0:46:26One of the biggest challenges was getting our normal tradesmen in,
0:46:26 > 0:46:29because they're all busy with the floods in Carlisle.
0:46:29 > 0:46:31And we didn't want to use anybody else.
0:46:31 > 0:46:35So, we had to put pressure on them to get the job done,
0:46:35 > 0:46:38ready for yous guys coming back!
0:46:38 > 0:46:41Sounds like WE'RE getting the blame there!
0:46:42 > 0:46:44Regardless, the builders pulled out all the stops.
0:46:44 > 0:46:48So, are they, or more importantly granddaughter Tyne,
0:46:48 > 0:46:50pleased with the result?
0:46:50 > 0:46:52I think it'll be a cosy little house for her.
0:46:52 > 0:46:56It's modern, it's not over the top, very comfortable.
0:46:56 > 0:47:00It's done up to how she wanted,
0:47:00 > 0:47:02but with a lot of my little touches in as well, so...
0:47:02 > 0:47:03She had a good... She had an input.
0:47:03 > 0:47:07- She had an input.- Into the finish. - But it was my final say-so.
0:47:07 > 0:47:10Yeah, I'm really pleased with it.
0:47:10 > 0:47:12Well, it's clear to see who the boss is here.
0:47:12 > 0:47:16So, Denise, how did you get on with that 15 grand budget?
0:47:17 > 0:47:21We've actually come out at 12,200,
0:47:21 > 0:47:24which is pretty good for what we've achieved.
0:47:24 > 0:47:26Denise is spot-on.
0:47:26 > 0:47:28They have got a lot for their money here.
0:47:28 > 0:47:32What's more, they have also benefited from a government scheme
0:47:32 > 0:47:35put in place to help fund those anti-flooding measures.
0:47:35 > 0:47:39So they got five grand towards that, which seems great.
0:47:39 > 0:47:41But taking on a property like this has its risks.
0:47:43 > 0:47:45It's a gamble. You're taking a chance,
0:47:45 > 0:47:48whether it's going to flood again.
0:47:48 > 0:47:53But hopefully with the measures, the improvement in the flood defences,
0:47:53 > 0:47:55will stop it flooding again,
0:47:55 > 0:47:58therefore it will turn out to be a good investment.
0:48:01 > 0:48:03So, will the gamble pay off?
0:48:03 > 0:48:07We've invited along two local estate agents to give us their thoughts on
0:48:07 > 0:48:12Ron and Denise's £67,200 investment,
0:48:12 > 0:48:15starting with the agent who saw it first.
0:48:15 > 0:48:18They've done a really nice job. It's a very good standard.
0:48:18 > 0:48:21The kitchen's nice. They've got nice decor downstairs.
0:48:21 > 0:48:22So, overall, it's a good job.
0:48:22 > 0:48:24My first impression of the property,
0:48:24 > 0:48:26it has been done to a very high standard.
0:48:26 > 0:48:29The main selling points are the size of the downstairs,
0:48:29 > 0:48:33the kitchen is very modern, and the two good-sized double bedrooms.
0:48:33 > 0:48:37The only real negatives to these sorts of properties is the location,
0:48:37 > 0:48:38due to the recent flooding,
0:48:38 > 0:48:41and that does have an impact on any purchase going forward.
0:48:41 > 0:48:45Landlords struggle to buy them or struggle to insure them.
0:48:45 > 0:48:49A homeowner can buy one and have it insured through the Flood Re scheme,
0:48:49 > 0:48:54which is great. But other than that, is it going to flood again?
0:48:54 > 0:48:55Possibly. And that's just a risk
0:48:55 > 0:48:57that somebody's going to have to take.
0:48:59 > 0:49:03These kind of uncertainties might mean that lenders aren't keen
0:49:03 > 0:49:04to give mortgages around here,
0:49:04 > 0:49:06which in turn could hold back the house prices
0:49:06 > 0:49:10until there's more confidence that flooding measures
0:49:10 > 0:49:12will prevent another event.
0:49:12 > 0:49:15With that in mind, what do they think it could be worth?
0:49:15 > 0:49:19From what I've seen personally of resales of refurbished properties,
0:49:19 > 0:49:21I would expect this one to achieve
0:49:21 > 0:49:24somewhere in the region of about £80,000.
0:49:24 > 0:49:26On the sales market, the property should achieve
0:49:26 > 0:49:29somewhere in the region of £90,000.
0:49:29 > 0:49:33That could give them a potential profit of £22,500,
0:49:33 > 0:49:36not including taxes and expenses.
0:49:36 > 0:49:39But, of course, Denise and Ron are not selling -
0:49:39 > 0:49:41this is going to be home for Tyne.
0:49:41 > 0:49:43But what kind of rental could they get?
0:49:44 > 0:49:47A good rental figure on this would probably be
0:49:47 > 0:49:49somewhere in the region of £450 per calendar month.
0:49:49 > 0:49:50On the rental market,
0:49:50 > 0:49:53the property should achieve £500 per calendar month.
0:49:53 > 0:49:58If 500 was achievable, maybe the granddaughter, Tyne,
0:49:58 > 0:50:02would have to stay with her mother and we'll get the 500 quid!
0:50:03 > 0:50:05Well, they seem quite pleased with those figures.
0:50:05 > 0:50:07I'd watch out, Tyne!
0:50:07 > 0:50:09So, what's next for Ron and Denise?
0:50:09 > 0:50:11Will they be taking some well-earned rest?
0:50:12 > 0:50:15We've actually bought another house in the next street along,
0:50:15 > 0:50:19which is going to be for our daughter, Renee.
0:50:19 > 0:50:22So, we'd be doing that up in the next few weeks.
0:50:22 > 0:50:24And we live just a couple of streets away,
0:50:24 > 0:50:27so we're all going to be in the same area.
0:50:27 > 0:50:29We just hope, fingers crossed, it doesn't flood again.
0:50:29 > 0:50:33If it does, we've got daughter, granddaughter and ourselves
0:50:33 > 0:50:36all in the flood, so we'll all have to sort it out together!
0:50:40 > 0:50:43It was in the derby suburb of Alvaston
0:50:43 > 0:50:46where we first came across a three-bed semi
0:50:46 > 0:50:51that didn't quite match up to modern requirements.
0:50:51 > 0:50:54# Sign of the times... #
0:50:54 > 0:50:56This is such a classic design for this kind of house.
0:50:56 > 0:51:00The kitchens were always too small.
0:51:00 > 0:51:03But there's an easy solution, and that's to take out this wall.
0:51:03 > 0:51:06The whole ground floor then becomes just one big,
0:51:06 > 0:51:09lovely sort of living area.
0:51:09 > 0:51:13# Sign of the times... #
0:51:16 > 0:51:17Small kitchen and small bathroom,
0:51:17 > 0:51:21but good-sized bedrooms and living space and, well,
0:51:21 > 0:51:23just take a look at the garden!
0:51:24 > 0:51:262ft? 3ft? 50ft? 10ft?
0:51:26 > 0:51:28100ft? It's massive!
0:51:29 > 0:51:31So, while not short of space,
0:51:31 > 0:51:35it wasn't actually all in the right places.
0:51:35 > 0:51:36But it was a project,
0:51:36 > 0:51:41and that's exactly what IT director and project manager Philip wanted,
0:51:41 > 0:51:44so he snapped it up for £98,000.
0:51:46 > 0:51:48Tell me why you wanted to buy it.
0:51:48 > 0:51:51Location, price, type of property, work it needs doing to it.
0:51:51 > 0:51:55Right, that's all very boom, boom, boom - are you a boom,
0:51:55 > 0:51:56- boom, boom kind of a guy?- Yes.
0:51:56 > 0:51:58MUSIC: Boom Boom by John Lee Hooker
0:51:58 > 0:52:01# Boom, boom, boom, boom
0:52:01 > 0:52:03# Mm-hm... #
0:52:03 > 0:52:06Philip lives 120 miles away in Cambridgeshire, so hoped to find
0:52:06 > 0:52:09local builders who could crack on with the work
0:52:09 > 0:52:12while he dropped in from time to time.
0:52:12 > 0:52:14And he did hope to open up the kitchen
0:52:14 > 0:52:16and maybe do a small extension,
0:52:16 > 0:52:19all with a budget of £15,000-£18,000
0:52:19 > 0:52:22and a fairly relaxed 4-6 month timescale.
0:52:22 > 0:52:25So not quite bish, bash, bosh.
0:52:28 > 0:52:30Well, just four months later, we're back.
0:52:36 > 0:52:40Well, it's just a tidy up upfront, but, hey, that was all it needed.
0:52:40 > 0:52:43It was inside where Philip had more ambitious plans.
0:52:49 > 0:52:52So, has the tiny kitchen been extended?
0:52:52 > 0:52:55# Ooh, ooh, got to turn it around now
0:52:55 > 0:52:59# Change the scenery
0:52:59 > 0:53:02# Ooh, ooh, got to turn it around now... #
0:53:06 > 0:53:08Originally, when we came in, we knew what we wanted to do.
0:53:08 > 0:53:11We wanted to take the original kitchen out, because it was tiny,
0:53:11 > 0:53:13and extend the kitchen out, which we did,
0:53:13 > 0:53:17and that was the main piece of work that we wanted to do.
0:53:17 > 0:53:20# Ooh, ooh, got to turn it around now
0:53:20 > 0:53:23# Change the scenery
0:53:23 > 0:53:25# Ooh, ooh, got to turn it around now... #
0:53:25 > 0:53:30Thank goodness that old extension was taken down before it fell down!
0:53:30 > 0:53:33And with a new kitchen extension built within permitted development,
0:53:33 > 0:53:35it didn't need planning permission.
0:53:35 > 0:53:38They just had to meet building regulations.
0:53:41 > 0:53:44First floor was more renovation, so we replastered,
0:53:44 > 0:53:46and we put a new bathroom in as well.
0:53:52 > 0:53:56So, no longer the squashed bath, more a slim, straight suite.
0:53:59 > 0:54:03# Ooh, ooh, got to turn it around now...#
0:54:06 > 0:54:10And the bedrooms are looking crisp and clean,
0:54:10 > 0:54:13though it seemed at one point in the proceedings that getting to this
0:54:13 > 0:54:15stage was hanging in the balance.
0:54:15 > 0:54:17We found a problem upstairs in that
0:54:17 > 0:54:20there's a chimney breast on the far wall there,
0:54:20 > 0:54:22which wasn't supported properly,
0:54:22 > 0:54:24it was actually sitting off the floorboards.
0:54:24 > 0:54:26So, it was self-supporting.
0:54:26 > 0:54:30So, it did quite well to stay in place as long as it did.
0:54:30 > 0:54:34# Hold on, you know I've got to hold on... #
0:54:34 > 0:54:37Note to anyone contemplating it -
0:54:37 > 0:54:41knocking down chimney breasts without a support is dangerous.
0:54:41 > 0:54:45Moving outside, Philip has had that humongous garden sorted,
0:54:45 > 0:54:48and has added an L-shaped patio.
0:54:48 > 0:54:50So, what has he got from this project,
0:54:50 > 0:54:53apart from a very smart house, of course?
0:54:55 > 0:54:58The thing for me is to learn something from every project I do.
0:54:58 > 0:54:59So, my learning points
0:54:59 > 0:55:01on this particular project are that next time,
0:55:01 > 0:55:04when the project is farther away from home,
0:55:04 > 0:55:06I won't do any of the work.
0:55:06 > 0:55:11It's not cost-effective, it's not effective from a time point of view.
0:55:11 > 0:55:15So, the money I spent coming up here and staying here,
0:55:15 > 0:55:18I probably would have spent the same amount of money with a tradesman.
0:55:18 > 0:55:21For example, I did the painting and the stripping and the wallpaper.
0:55:21 > 0:55:24I could have spent that money with a tradesman and had it done quicker.
0:55:26 > 0:55:28And on the subject of cash, what about the budget?
0:55:32 > 0:55:35The original budget I had in mind was 15-18.
0:55:35 > 0:55:37That was purely guesswork.
0:55:37 > 0:55:40It was wildly inaccurate as well, unfortunately.
0:55:40 > 0:55:44The overall amount we spent was 26,200.
0:55:47 > 0:55:49Well, let's just call it 26 grand between friends.
0:55:49 > 0:55:52And that, along with his £98,000 purchase price,
0:55:52 > 0:55:56takes Philip's little project to 124,000.
0:55:58 > 0:56:00So, a sound investment?
0:56:00 > 0:56:03What do two local agents think?
0:56:06 > 0:56:09First impressions of the property are good, really.
0:56:09 > 0:56:12Nice finish, about right for this sort of type of property in this
0:56:12 > 0:56:15location. So, yeah, there should be no problem in selling.
0:56:15 > 0:56:18The accommodation is nice and open, with this extension and
0:56:18 > 0:56:22the fact that they've opened up the living room to the kitchen area.
0:56:22 > 0:56:23The other things I like
0:56:23 > 0:56:27is the colour scheme in the kitchen, for example.
0:56:27 > 0:56:29Very unusual for a house that someone's done up
0:56:29 > 0:56:32to appeal to everybody, because some people won't like it.
0:56:32 > 0:56:35Not a big deal to change it, but good idea.
0:56:37 > 0:56:41Philip would rather sell this house on, but he is open to rental,
0:56:41 > 0:56:43should the sale price not be to his liking.
0:56:43 > 0:56:47And the agents thought this house could achieve somewhere between
0:56:47 > 0:56:51£550 and £625 per calendar month on the rental market.
0:56:53 > 0:56:56Those figures are OK. That's roughly what I thought.
0:56:56 > 0:56:58Probably more closer to the 650, I would think.
0:56:59 > 0:57:03With a top estimate of £625 per calendar month,
0:57:03 > 0:57:06there's a potential rental yield of around 6%.
0:57:06 > 0:57:08But can this £124,000 investment
0:57:08 > 0:57:13get Philip the 20 grand profit he was hoping to achieve?
0:57:13 > 0:57:17In my opinion, if I was to place this property on the open market,
0:57:17 > 0:57:20I'd recommend an asking price of £155,000.
0:57:20 > 0:57:23If the property was offered for sale on the open market
0:57:23 > 0:57:27at the present time, I would suggest an asking price of £160,000.
0:57:27 > 0:57:30That's pretty much bang on the button for what we thought.
0:57:30 > 0:57:33We were thinking 160.
0:57:33 > 0:57:35The market will tell us whether it's 155 or 160,
0:57:35 > 0:57:38but hopefully there or thereabouts. So that would be great, yeah.
0:57:38 > 0:57:43That top figure would give him a pre-tax profit of 36,000.
0:57:43 > 0:57:45Wow! Philip said he was a boom, boom, boom man
0:57:45 > 0:57:47when it came to projects,
0:57:47 > 0:57:50and with that potential profit in just four months,
0:57:50 > 0:57:52I think he's going out on this one with a bang.
0:57:57 > 0:57:58Well, one thing's for sure -
0:57:58 > 0:58:01stories from the auction rooms are never dull,
0:58:01 > 0:58:04and we'll have plenty more of those for you next time.
0:58:04 > 0:58:07So, join us next time to hear all about them - the highs and the lows.
0:58:07 > 0:58:10- See you.- Goodbye.