0:00:02 > 0:00:04Hello. Investing in property can sometimes be intimidating,
0:00:04 > 0:00:06especially if it's your first time.
0:00:06 > 0:00:08Yeah, so do your homework, get the right advice,
0:00:08 > 0:00:10and things might be a little less scary.
0:00:10 > 0:00:13Yes, and one place to find some great property opportunities
0:00:13 > 0:00:15is at your local property auction.
0:00:41 > 0:00:44Auctions are full of all kinds of different properties.
0:00:44 > 0:00:48But it's really important not to be overwhelmed by the options,
0:00:48 > 0:00:50and make sure you can see the wood for the trees.
0:00:50 > 0:00:53So let's find out what choices today's buyers made.
0:00:55 > 0:00:57Fancy a property with added extras?
0:00:57 > 0:01:00These derelict Lincolnshire cottages could be for you.
0:01:02 > 0:01:03Indoor swimming pool.
0:01:05 > 0:01:07And if you think that's surprising,
0:01:07 > 0:01:10wait till you find out what's round the back of this Crewe bungalow.
0:01:10 > 0:01:13What you've got here is a lot of space.
0:01:15 > 0:01:18And in Dover, it's a bit damp, a bit draughty,
0:01:18 > 0:01:21and a bit dangerous in this three-bed terrace house.
0:01:21 > 0:01:25This is probably the steepest staircase I've ever had to climb up.
0:01:26 > 0:01:28All these properties have been sold at auction.
0:01:28 > 0:01:31We'll find out who bought them and what they paid for them
0:01:31 > 0:01:33when they went under the hammer.
0:01:33 > 0:01:34Your lot, sir. Well done.
0:01:38 > 0:01:40First stop today is Lincolnshire,
0:01:40 > 0:01:43and the rich, fertile grounds of the Fens,
0:01:43 > 0:01:47where, hopefully, our next property will provide rich pickings.
0:01:47 > 0:01:51I'm near Crowland, northeast of Peterborough.
0:01:51 > 0:01:54Under one lot, we've got two semidetached cottages.
0:01:54 > 0:01:56Now, if you do like to be out in the countryside,
0:01:56 > 0:01:58this could be the place for you.
0:01:58 > 0:02:01But you would have to take into consideration a very noisy
0:02:01 > 0:02:03and fast road.
0:02:03 > 0:02:07It's got a guide price of £100,000 to £120,000. There's two to look at.
0:02:07 > 0:02:09And I'm going to start this way.
0:02:12 > 0:02:14With little protection in this exposed landscape,
0:02:14 > 0:02:19these former labourers' cottages look a little weather-beaten.
0:02:19 > 0:02:21# Against the wind
0:02:24 > 0:02:27# A little something against the wind... #
0:02:27 > 0:02:30And perhaps escaping from the wind is the reason why
0:02:30 > 0:02:33the front doors are actually on the side of the building.
0:02:33 > 0:02:35This place is in... It's a bit of a mess.
0:02:35 > 0:02:38It's been left for some time, obviously.
0:02:38 > 0:02:41Both of these places are pretty much a mirror image of each other.
0:02:41 > 0:02:43There's three bedrooms upstairs,
0:02:43 > 0:02:47and downstairs, you get two reception rooms, a kitchen,
0:02:47 > 0:02:49which is in need of a kitchen,
0:02:49 > 0:02:54a bathroom, and you also get a toilet, all downstairs.
0:02:54 > 0:02:57And both of these properties, as well, have an annexe,
0:02:57 > 0:02:59which is small, but usable.
0:03:01 > 0:03:05There's no denying this place is looking pretty neglected
0:03:05 > 0:03:09so, obviously, a top-to-bottom renovation job is required here.
0:03:09 > 0:03:12With the living room being the only decent-sized room,
0:03:12 > 0:03:15a bit of a rejigging with the layout may be required
0:03:15 > 0:03:17to improve this living space.
0:03:20 > 0:03:22It's the same upstairs,
0:03:22 > 0:03:25where the three bedrooms are not exactly great sizes.
0:03:25 > 0:03:27But let's not forget
0:03:27 > 0:03:30the layout of the semi next door mirrors the first house
0:03:30 > 0:03:32and, unfortunately, so does its condition.
0:03:32 > 0:03:34# Two of a kind
0:03:34 > 0:03:38# For your information We're two of a kind
0:03:40 > 0:03:41# Two of a kind
0:03:41 > 0:03:46# It's my observation We're two of a kind... #
0:03:46 > 0:03:49I've been having a bit of a walk around, a bit of a ponder,
0:03:49 > 0:03:50looking at these two properties,
0:03:50 > 0:03:54and beyond the obvious, which is new windows, new doors,
0:03:54 > 0:03:58new kitchens, new bathrooms, practically new everything.
0:03:58 > 0:04:00If you were willing to knock a few walls down
0:04:00 > 0:04:04and make these two semis into one big detached, would it work?
0:04:10 > 0:04:13The advantage of turning this into a big, spacious country home
0:04:13 > 0:04:17is that the potential buyer might be seeking splendid isolation,
0:04:17 > 0:04:21preferring not to live attached to a neighbour.
0:04:21 > 0:04:24This place could easily have four or five bedrooms,
0:04:24 > 0:04:27and imagine what you could do to that ground floor
0:04:27 > 0:04:29if you knocked a few walls through.
0:04:29 > 0:04:32How about a beautiful farmhouse kitchen with a range,
0:04:32 > 0:04:36or does an indoor swimming pool sound a bit far-fetched?
0:04:37 > 0:04:40Follow me. I've been walking round this property
0:04:40 > 0:04:42and I've found a Billy Bonus.
0:04:43 > 0:04:45Have a look in there.
0:04:45 > 0:04:48Indoor swimming pool.
0:04:48 > 0:04:49Fancy a dip?
0:04:50 > 0:04:52After you, then.
0:04:52 > 0:04:55- # We're twisting by the pool - Twisting by the pool
0:04:55 > 0:05:00# Twisting by the pool... #
0:05:00 > 0:05:02One thing that will be splashing here is the cash.
0:05:05 > 0:05:08Time to find out what a local estate agent makes
0:05:08 > 0:05:11of these two semidetached properties deep in rural Lincolnshire,
0:05:11 > 0:05:16that came guided at in-between £100,000 and £120,000.
0:05:16 > 0:05:18Is this a good area to invest in?
0:05:18 > 0:05:20As you come out to Crowland,
0:05:20 > 0:05:22you get slightly more value for money.
0:05:22 > 0:05:25So it's a family-orientated area,
0:05:25 > 0:05:27lots of good schools.
0:05:27 > 0:05:29So it's family homes, mainly.
0:05:29 > 0:05:32Two-, three- and small four-bed properties are most popular.
0:05:32 > 0:05:35So this could be a good area to invest your money.
0:05:35 > 0:05:37How does the property rate?
0:05:37 > 0:05:39Well, I've had a good look round.
0:05:39 > 0:05:43Some of the floors are uneven, but I feel, structurally, they are sound.
0:05:43 > 0:05:47So it's just major renovation. A lot of it's cosmetic.
0:05:47 > 0:05:49But it's a bit of a challenge.
0:05:49 > 0:05:51No doubt about that.
0:05:51 > 0:05:54What would be the best way forward for this house?
0:05:54 > 0:05:57Stick with two semis, or convert into one large property?
0:05:57 > 0:06:01I personally feel the properties would be better left as two.
0:06:01 > 0:06:03I feel there'd be much higher demand
0:06:03 > 0:06:07for two three-bed rural properties than for one larger property.
0:06:07 > 0:06:11So, with a guide price of £100,000 to £120,000,
0:06:11 > 0:06:14what could the two semis sell for once renovated?
0:06:14 > 0:06:18If the properties were to remain as two three-bed properties,
0:06:18 > 0:06:22I would expect them to achieve in the region of £170,000 each.
0:06:22 > 0:06:24And the rentals?
0:06:24 > 0:06:27If they were to remain as three-bed properties and they were rented,
0:06:27 > 0:06:31I would expect to achieve around £700 per calendar month.
0:06:31 > 0:06:34And how much could a single dwelling sell for?
0:06:34 > 0:06:36If the property was to be converted
0:06:36 > 0:06:39into one large four- or five-bed property,
0:06:39 > 0:06:42I would expect it to achieve around £300,000.
0:06:42 > 0:06:45I've been stood here for a while now, traffic-watching.
0:06:45 > 0:06:48And because this road is flat and straight,
0:06:48 > 0:06:51the traffic is very fast and incredibly noisy.
0:06:51 > 0:06:55Just something for the potential buyer to consider.
0:06:55 > 0:06:58Let's see who fancied it when it went under the hammer.
0:06:58 > 0:07:01Fascinating lot, this, ladies and gentlemen. Lot of interest.
0:07:01 > 0:07:05£100,000. Nice round number for us. 100,000?
0:07:05 > 0:07:0885, then. 85. Two hands at 85.
0:07:08 > 0:07:1086. And 7.
0:07:10 > 0:07:1288. 89. 90.
0:07:12 > 0:07:14And 1. 92. 93.
0:07:14 > 0:07:17There was certainly a lot of interest in these properties,
0:07:17 > 0:07:22and we pick it up when the bidding has reached £113,000.
0:07:22 > 0:07:26113. 114 against you. 115.
0:07:26 > 0:07:29No? At 114. 5 to move it on.
0:07:29 > 0:07:32114,500. 115,000 for you.
0:07:32 > 0:07:34115. Another half on it? No?
0:07:34 > 0:07:36All finished with it, then,
0:07:36 > 0:07:39sitting here at 115,000, for the first time on it.
0:07:40 > 0:07:42Second time.
0:07:42 > 0:07:45Third and very last chance on it for all of you at 115,000.
0:07:45 > 0:07:47You're sure. You're all done with it.
0:07:47 > 0:07:49That's yours, sir.
0:07:49 > 0:07:54And the successful bidder getting the lot for £115,000 was Emil.
0:07:56 > 0:08:01Emil is originally from Bulgaria, and has lived in the UK since 2001,
0:08:01 > 0:08:05and has slowly built up a portfolio of seven buy-to-let properties.
0:08:05 > 0:08:07I met him back at the house
0:08:07 > 0:08:11to find out if his plans were the same for this one.
0:08:11 > 0:08:15- Emil, nice to meet you. And congratulations.- Thank you.
0:08:15 > 0:08:17How did you find this place?
0:08:17 > 0:08:21I went fishing with my father,
0:08:21 > 0:08:27and we came around here because we did another property in the area,
0:08:27 > 0:08:31so I was quite familiar with the fishing in the area,
0:08:31 > 0:08:34so that's why we came here, and we found...
0:08:34 > 0:08:37We saw the sign outside.
0:08:37 > 0:08:41It was Sunday, and the auction was on Wednesday,
0:08:41 > 0:08:43so we had to be very quick.
0:08:43 > 0:08:46So you were just driving by and you've seen it?
0:08:46 > 0:08:49Off to fishing, and you've just seen this one just by chance?
0:08:49 > 0:08:51Yes. Literally, yes.
0:08:51 > 0:08:53We were passing by.
0:08:53 > 0:08:57I was really excited when I saw the sign that it was for sale.
0:08:57 > 0:09:00Emil lives in London, but being a keen angler,
0:09:00 > 0:09:02likes this part of the country.
0:09:02 > 0:09:04In fact, his travels up here
0:09:04 > 0:09:07have regularly taken him past these properties,
0:09:07 > 0:09:11and he's always kept his eyes peeled for their availability.
0:09:11 > 0:09:15Like any keen fisherman, patience has finally paid off.
0:09:15 > 0:09:19So, now you've got this property, I'm wondering now,
0:09:19 > 0:09:21what are you thinking?
0:09:21 > 0:09:27One of the ideas I have is to create one four- or five-bedroom property.
0:09:27 > 0:09:31Because the land around, it's quarter of an acre,
0:09:31 > 0:09:35so it's a good-sized plot for a good-sized property.
0:09:35 > 0:09:40The other one, it's better it stays at it is - semidetached.
0:09:40 > 0:09:42We're not sure yet.
0:09:42 > 0:09:47We still need to consult a couple of estate agents in the area,
0:09:47 > 0:09:48familiar with the area,
0:09:48 > 0:09:51and then we're going to decide what we're going to do.
0:09:54 > 0:09:56Emil is experienced in the property game
0:09:56 > 0:10:00and knows the benefits of checking the local market conditions.
0:10:00 > 0:10:04He's also given some thought to the budget and decided that, regardless
0:10:04 > 0:10:10of the eventual configuration, he's prepared to spend around £45,000.
0:10:10 > 0:10:13Does it worry you that you might find things here
0:10:13 > 0:10:15that may take the budget up?
0:10:15 > 0:10:18- If worst comes to worst, we'll knock it down. - DION LAUGHS
0:10:18 > 0:10:23- Option three! Option three. - Yeah, yeah!- OK.
0:10:23 > 0:10:26Let's hope it doesn't come to that.
0:10:26 > 0:10:30Emil's favoured option is to turn these into one large house
0:10:30 > 0:10:33and has a clear plan in his head about how things should look.
0:10:34 > 0:10:38The first thing, we'll put in the door at the front.
0:10:38 > 0:10:40We just need to offset the windows
0:10:40 > 0:10:44so it becomes symmetric to the other three.
0:10:44 > 0:10:47Then we're going to probably put the staircase
0:10:47 > 0:10:49just in front of the entrance door.
0:10:49 > 0:10:54Upstairs, we're going to create a bathroom, with four double bedrooms.
0:10:54 > 0:10:58At the back, we're going to remove the dividing wall,
0:10:58 > 0:11:00and it's going to become a kitchen,
0:11:00 > 0:11:05and something like a granny flat at the back, because there will be
0:11:05 > 0:11:11a bathroom and toilet, there'll be a small bedroom for elderly people.
0:11:11 > 0:11:15If we decide to go for one property, we don't have to have planning.
0:11:17 > 0:11:20I've spoken to the guys in South Holland District Council
0:11:20 > 0:11:23on the way to the auction, and they said that, apparently,
0:11:23 > 0:11:24because of the location,
0:11:24 > 0:11:29if I decided to make it one property, I can just go ahead.
0:11:29 > 0:11:31Sorted.
0:11:31 > 0:11:34Emil intends to get this confirmed in writing, and only having to deal
0:11:34 > 0:11:39with building regulations means a huge saving in time.
0:11:39 > 0:11:41With the plan being to get this place renovated
0:11:41 > 0:11:43and back on the market in six months,
0:11:43 > 0:11:47Emil and his team of builders will need to get cracking.
0:11:47 > 0:11:50Last question, most important question.
0:11:50 > 0:11:53Are you going to keep the swimming pool?
0:11:53 > 0:11:56Well... I don't think I will!
0:11:56 > 0:12:00Well, then, if you're not going to keep it, I'm going to wish you good luck. OK?
0:12:00 > 0:12:03- Thank you.- I hope it works out. Whatever you choose, good luck.
0:12:03 > 0:12:05Thank you.
0:12:05 > 0:12:06So there you have it.
0:12:06 > 0:12:09Emil is thinking about knocking these two semis
0:12:09 > 0:12:13into one single detached property, so expect some radical changes.
0:12:13 > 0:12:16And you people have only got till the end of the show
0:12:16 > 0:12:17to find out how it looks.
0:12:22 > 0:12:25Railways have played an important part in the prosperity
0:12:25 > 0:12:27of the Cheshire town of Crewe.
0:12:27 > 0:12:30In fact, the town owes its very existence
0:12:30 > 0:12:35to the founding of a locomotive works here in the late 1830s.
0:12:35 > 0:12:39As a major interchange on today's West Coast Main Line, Crewe retains
0:12:39 > 0:12:45an important strategic position in the UK's transport infrastructure.
0:12:45 > 0:12:47Well, just three-quarters of a mile
0:12:47 > 0:12:50from the town centre and Crewe railway station
0:12:50 > 0:12:52is the property I'm here to see.
0:12:52 > 0:12:56A three-bedroomed bungalow, had a guide price of £90,000.
0:12:56 > 0:12:58Let's take a look.
0:13:02 > 0:13:04Whoof!
0:13:04 > 0:13:06Right, a little porch area there,
0:13:06 > 0:13:08and then through into this central area,
0:13:08 > 0:13:10off which all the rooms spread.
0:13:10 > 0:13:14So, the classic bungalow layout. Good-sized cupboard there.
0:13:14 > 0:13:16And then the first bedroom at the front there.
0:13:16 > 0:13:19Lots of signs of damp, which isn't too brilliant.
0:13:19 > 0:13:23That could just be that the house hasn't been lived in.
0:13:23 > 0:13:27Because, overall, it doesn't seem to be in too bad condition.
0:13:27 > 0:13:29This is obviously your lounge, judging by the fireplace.
0:13:29 > 0:13:33Lots of light coming in through the window. The ceiling height could be a bit higher.
0:13:33 > 0:13:37And it looks like, judging by the storage radiator,
0:13:37 > 0:13:38no central heating.
0:13:38 > 0:13:41So that's something to factor in to the costs of renovation.
0:13:41 > 0:13:45Two more bedrooms there. A bathroom, then through to the kitchen.
0:13:45 > 0:13:48Uh, OK. Slightly disappointing.
0:13:48 > 0:13:52Dominated by this very large chimney breast, which,
0:13:52 > 0:13:54although quite attractive in its own way -
0:13:54 > 0:13:57I suppose the idea of having a fire in the kitchen, an open fire -
0:13:57 > 0:13:59it's taking up so much space.
0:13:59 > 0:14:00And being a bungalow,
0:14:00 > 0:14:04it wouldn't be as much of an issue to take it out as if it was a house.
0:14:04 > 0:14:06But the space in here's quite good.
0:14:06 > 0:14:08Again, lots of light, lots of windows,
0:14:08 > 0:14:10although they'll obviously need to be replaced,
0:14:10 > 0:14:12those old metal ones there.
0:14:12 > 0:14:15And you are going to have to invest in some new units.
0:14:15 > 0:14:19But you've got a lot to play with here, and I like that.
0:14:19 > 0:14:22SIXTIES JAZZ PLAYS
0:14:22 > 0:14:25There was once a time when this would have been all very groovy.
0:14:25 > 0:14:28But let's be honest - these days, there's nothing in here
0:14:28 > 0:14:31that you would really want to keep.
0:14:31 > 0:14:32Love the music.
0:14:32 > 0:14:36It's all very dated and needs a complete strip-down,
0:14:36 > 0:14:39but the flexibility of a bungalow allows you to reshape
0:14:39 > 0:14:41the interior space as you see fit.
0:14:41 > 0:14:44I'm off to see if the outside space is as flexible.
0:14:48 > 0:14:51Well, at the back of the property, a little lean-to,
0:14:51 > 0:14:55a fairly nice conservatory area there, and then just a boring old,
0:14:55 > 0:15:01common old bit of grass that you'd expect behind any bungalow.
0:15:01 > 0:15:03MUSIC: Walk On The Wild Side by Lou Reed
0:15:06 > 0:15:08Not quite.
0:15:09 > 0:15:12Oh, yes, there's much more to this property
0:15:12 > 0:15:14than first meets the eye.
0:15:14 > 0:15:18Beyond the back garden lies an L-shaped plot of land
0:15:18 > 0:15:20big enough to house...
0:15:20 > 0:15:22Wait for it.
0:15:22 > 0:15:24..18 garages.
0:15:24 > 0:15:26And the odd shipping container.
0:15:28 > 0:15:31Some are empty, others are filled with an assortment of junk.
0:15:31 > 0:15:34But looking at their age and condition, it's safe to assume
0:15:34 > 0:15:38that there was a lot of asbestos used in their construction.
0:15:38 > 0:15:42That's fine as long as it remains undisturbed, but clearing this site
0:15:42 > 0:15:46would mean obtaining the services of a specialist contractor.
0:15:48 > 0:15:52So, all in all, very, very surprising.
0:15:52 > 0:15:56But if you can see beyond the garages,
0:15:56 > 0:15:59what you've got here is a lot of space.
0:15:59 > 0:16:01What does that mean?
0:16:01 > 0:16:03Well, combine it with a separate access,
0:16:03 > 0:16:05because the bungalow has two,
0:16:05 > 0:16:11could this be a plot of land ripe for development?
0:16:11 > 0:16:13Ooh! That's interesting.
0:16:15 > 0:16:16Of course,
0:16:16 > 0:16:19it all depends on getting planning permission from the local council.
0:16:19 > 0:16:23I suspect that, given the derelict nature of the site, the council
0:16:23 > 0:16:27would be only too pleased to see it being converted to residential use.
0:16:31 > 0:16:34What does a Crewe property expert think?
0:16:34 > 0:16:37We invited an agent from the auction house who sold the bungalow
0:16:37 > 0:16:42to come along and give us the benefit of his local knowledge.
0:16:42 > 0:16:45Built around about the mid-1950s.
0:16:45 > 0:16:49Quite a spacious true bungalow with lots of potential
0:16:49 > 0:16:51and a good amount of land.
0:16:51 > 0:16:53I think, definitely, the purchaser
0:16:53 > 0:16:57would look to gain planning permission for the land
0:16:57 > 0:16:59and look at building some properties,
0:16:59 > 0:17:05possibly three bungalows, or six semidetached bungalows.
0:17:05 > 0:17:10Six semidetached bungalows would turn this eyesore
0:17:10 > 0:17:13into a little pot of gold for some enterprising individual.
0:17:13 > 0:17:15But how would the values pan out?
0:17:15 > 0:17:19Let's start with the refurbished bungalow.
0:17:19 > 0:17:21I would imagine the bungalow would achieve
0:17:21 > 0:17:25in the region of £110,000 to £115,000.
0:17:25 > 0:17:28I would say the semidetached bungalows would achieve
0:17:28 > 0:17:32in the region of £90,000 to £95,000 per unit.
0:17:33 > 0:17:36Well, this has to be one of the more unusual properties
0:17:36 > 0:17:38that we've featured on Homes Under The Hammer -
0:17:38 > 0:17:42not necessarily the bungalow, but certainly the back garden.
0:17:42 > 0:17:45However, for a shrewd property developer who's willing to take
0:17:45 > 0:17:49a bit of a gamble, possibly there's money to be made here.
0:17:49 > 0:17:53Let's find out who bought it when it went under the hammer.
0:17:54 > 0:17:56It's a detached three-bedroom bungalow.
0:17:56 > 0:17:58Potential development subject to planning.
0:17:58 > 0:18:01The bungalow does require modernising.
0:18:01 > 0:18:03So what shall we say for lot 68?
0:18:03 > 0:18:0570 to start me here?
0:18:05 > 0:18:0665, then.
0:18:06 > 0:18:09Can we get it going at 65?
0:18:09 > 0:18:11Plenty of potential.
0:18:11 > 0:18:1465 bid, thank you. That's £65,000.
0:18:14 > 0:18:1768, can I say now? At £65,000...
0:18:17 > 0:18:20It took a while, but once the first bid came in,
0:18:20 > 0:18:21the price rose steadily.
0:18:21 > 0:18:25We rejoin the auction with the bid standing at 91,000.
0:18:25 > 0:18:2891.
0:18:28 > 0:18:2991,500.
0:18:29 > 0:18:3192.
0:18:31 > 0:18:3392,500.
0:18:33 > 0:18:3493.
0:18:34 > 0:18:3593,500.
0:18:35 > 0:18:3794. No?
0:18:37 > 0:18:41At 94. Still on the back row at £94,000.
0:18:41 > 0:18:44Another 500 anywhere else?
0:18:44 > 0:18:49If not, £94,000 for the first time.
0:18:49 > 0:18:52£94,000 for the second time.
0:18:52 > 0:18:55Third and final time at £94,000.
0:18:57 > 0:18:59Your lot, sir. Well done.
0:18:59 > 0:19:03And making that successful bid of 94,000 was Joel,
0:19:03 > 0:19:05an electrical contractor from Walsall.
0:19:07 > 0:19:11We met up to chat about what his dreams are for this bungalow.
0:19:13 > 0:19:17- Joel, good to meet you.- And you. - Congratulations.- Thank you.
0:19:17 > 0:19:21- Well, bit of a project, then. - Just a bit, yeah.
0:19:21 > 0:19:23Tell me why you wanted to buy the bungalow.
0:19:23 > 0:19:26Well, it was a bit of a spur-of-the-moment thing, really.
0:19:26 > 0:19:29When you say "spur-of-the-moment", what do you mean?
0:19:29 > 0:19:33We were going for a piece of land not too far from where I live,
0:19:33 > 0:19:35and it went over our guide...
0:19:35 > 0:19:37It went well over the guide.
0:19:37 > 0:19:40We did some costings, it wasn't going to happen, so we left that.
0:19:40 > 0:19:43Didn't really want to leave there empty-handed, so this was about the next best thing.
0:19:43 > 0:19:47I opened the next page and that was it. I thought, "Right, we'll have that, then."
0:19:47 > 0:19:50Hang on a minute. Please tell me you didn't just buy it
0:19:50 > 0:19:52on what you saw in the auction catalogue.
0:19:52 > 0:19:54Of course, yeah. I broke the golden rule.
0:19:54 > 0:19:57- You've broken lots of golden rules. So you hadn't seen it?- No.
0:19:57 > 0:20:01- You hadn't even looked through the window? You didn't know where it was?- No.
0:20:01 > 0:20:04- You hadn't read the legal pack. - No. Nothing.
0:20:04 > 0:20:10So, what influenced your decision in the auction, then? The picture?
0:20:10 > 0:20:12- The picture, yeah, and the land. - Right.
0:20:12 > 0:20:16So, I think it's got a lot of potential with the garages.
0:20:16 > 0:20:20There's obviously a lot of wide space out there.
0:20:20 > 0:20:23- And, potentially, it lends itself to property.- Right.
0:20:23 > 0:20:27And then, obviously, this place needs a full regeneration.
0:20:27 > 0:20:29So you paid 94,000 for something you hadn't seen
0:20:29 > 0:20:31- and didn't know where it was!- Yeah.
0:20:31 > 0:20:34So when you told people afterwards, what did they say?
0:20:34 > 0:20:37They just laughed and said, "Haven't you watched the programme before?"
0:20:37 > 0:20:39I said "Yeah, every morning before work."
0:20:39 > 0:20:43- But you decided to completely ignore our advice.- Yeah.- Uhh!
0:20:43 > 0:20:47So what did you think when you came...for the first time?
0:20:47 > 0:20:50First time I saw it was the evening of the auction - pitch-black.
0:20:50 > 0:20:54- I was stumbling round outside with my phone...torch.- Oh, no!
0:20:54 > 0:20:57And then I kind of got the keys the other week,
0:20:57 > 0:20:59had a quick mooch around, and impressed with it, really,
0:20:59 > 0:21:01for what we got for the money.
0:21:01 > 0:21:03# But a shot in the dark
0:21:05 > 0:21:08# One step away from you... #
0:21:08 > 0:21:12Joel has stumbled around in the dark with this property quite literally,
0:21:12 > 0:21:15but it would appear that, in the clear light of day,
0:21:15 > 0:21:18he has landed on his feet with this one.
0:21:18 > 0:21:22He lacks the finance to develop this plot all in one go,
0:21:22 > 0:21:27so he's broken it into smaller steps, starting with the bungalow.
0:21:27 > 0:21:29We're going to do a full strip-out.
0:21:29 > 0:21:32New kitchen, bathroom, rewire, central heating.
0:21:32 > 0:21:36Needs a full plaster. And then sell this.
0:21:36 > 0:21:39Upon the sale of this, we're obviously going to split the land.
0:21:39 > 0:21:42Planning permission's just going in at the moment
0:21:42 > 0:21:46- for two pairs of three-bed semis. - Two pairs?- Yeah.
0:21:46 > 0:21:48So we should get four houses, hopefully, on the back.
0:21:48 > 0:21:49They'll be...
0:21:49 > 0:21:52Sell this and that will fund the build of those,
0:21:52 > 0:21:54if we get planning.
0:21:54 > 0:21:55That's the golden key.
0:21:55 > 0:21:59- Wow. That would be amazing if you did.- Very much so.
0:21:59 > 0:22:02- That's the plan, anyway.- And the idea for access would be, what?
0:22:02 > 0:22:05- Down the two drives?- Via the right drive of the bungalow.- OK.
0:22:05 > 0:22:08So we're going to widen the drive up, move the border back,
0:22:08 > 0:22:11and probably splay the drive at the front, and then...
0:22:11 > 0:22:15We've had a wagon down there with a skip, dropped it down.
0:22:15 > 0:22:18So if we can get a lorry down there, we'll get cars easily.
0:22:18 > 0:22:20Right. Have you done anything like this before?
0:22:20 > 0:22:24I've been involved with one build with my father-in-law in Cannock.
0:22:24 > 0:22:28We did a new-build bungalow - bought a piece of land, put a bungalow on.
0:22:28 > 0:22:32- But my background's electrician, so...- Right!- Nothing of this scale.
0:22:32 > 0:22:36Joel is hoping that his electrical contracting business
0:22:36 > 0:22:38will evolve into constructing,
0:22:38 > 0:22:42and this project is ideal as the first rung on the ladder.
0:22:42 > 0:22:46He's set aside a budget of £15,000 to renovate the bungalow
0:22:46 > 0:22:49in a timescale of six to eight weeks.
0:22:50 > 0:22:54Obviously, your big profits in this are going to be if you can build.
0:22:54 > 0:22:58- If we can build, yeah, definitely. - What would the budget be for the build?
0:22:58 > 0:23:03The build, we're looking about 80,000 to build the pair.
0:23:03 > 0:23:06- So, for the pair, build costs about 160.- Yeah.
0:23:06 > 0:23:09- How much do you think those will be worth?- 110, hopefully.
0:23:09 > 0:23:14- So, 160 cost and 440 potential resale value.- Yeah.
0:23:14 > 0:23:15So, 200 grand.
0:23:15 > 0:23:19Plus quarter of a million quid's worth of profit there, perhaps.
0:23:19 > 0:23:21- Hopefully.- Ha!- Hopefully, yeah.
0:23:21 > 0:23:25- All from a spur-of-the-moment and turning-over-the-paper decision!- Yeah.
0:23:25 > 0:23:27Where it could go wrong - we don't get planning
0:23:27 > 0:23:29and I'm stuck with this place and I get my money back.
0:23:29 > 0:23:30Worst case, I get my money back.
0:23:30 > 0:23:34- Well, the worst case is you get your money back, isn't it? - Mm. You can't lose on it.
0:23:34 > 0:23:38You might be spur-of-the-moment, but you're a man of vision, aren't you?
0:23:38 > 0:23:39You've got to be.
0:23:39 > 0:23:43- Well, listen, congratulations. Good luck with it.- Thank you.
0:23:43 > 0:23:45- I admire your spirit. - Thank you very much.
0:23:45 > 0:23:49I look forward to seeing how you get on.
0:23:49 > 0:23:54Well, Joel breaking all the rules in a most spectacular fashion.
0:23:54 > 0:23:58However, it would seem that he could be on -
0:23:58 > 0:24:03"could" being the important word - for a spectacular profit.
0:24:04 > 0:24:07You can find out what happens later in the show.
0:24:08 > 0:24:11Still to come - the buyers of this Dover house
0:24:11 > 0:24:13contemplate a worst-case scenario.
0:24:13 > 0:24:15We might have to remove the whole concrete flooring
0:24:15 > 0:24:18and tank it with DPC and insulation.
0:24:20 > 0:24:24And back in Crewe, Joel gets a welcome boost to his budget.
0:24:24 > 0:24:27My wife managed to get the fireplace complete for 99 pence,
0:24:27 > 0:24:28which is our best buy.
0:24:32 > 0:24:36But first, it's time to return to the village of Crowland,
0:24:36 > 0:24:37just north of Peterborough,
0:24:37 > 0:24:41where, earlier, I'd picked my way carefully through these two
0:24:41 > 0:24:43rather neglected semidetached cottages
0:24:43 > 0:24:45sitting at the side of a busy main road.
0:24:47 > 0:24:50The building wasn't exactly falling apart, but it was going to take
0:24:50 > 0:24:53more than a lick of paint to put this place right.
0:24:53 > 0:24:57New windows, new doors. New kitchens, new bathrooms.
0:24:57 > 0:24:59Practically new everything.
0:25:01 > 0:25:02It was bought by builder
0:25:02 > 0:25:06and property developer Emil for £115,000.
0:25:07 > 0:25:11London-based Emil stumbled upon this rural development opportunity
0:25:11 > 0:25:13completely by chance.
0:25:13 > 0:25:16I was quite familiar with the fishing in the area,
0:25:16 > 0:25:20so that's why we came here, and we saw the sign outside.
0:25:20 > 0:25:24It was Sunday, and the auction was on Wednesday.
0:25:24 > 0:25:26So we had to be very quick.
0:25:26 > 0:25:30So how was this keen fisherman planning to tackle this project?
0:25:30 > 0:25:33Keep the existing two-cottage configuration,
0:25:33 > 0:25:36or knock it into one large family home?
0:25:36 > 0:25:38We're not sure yet.
0:25:38 > 0:25:41We still need to consult a couple of estate agents in the area,
0:25:41 > 0:25:43familiar with the area.
0:25:43 > 0:25:46And then we're going to decide what we're going to do.
0:25:47 > 0:25:50With two possible options open to him,
0:25:50 > 0:25:53we left Emil to do his research on the local property market.
0:25:55 > 0:26:00Eight months later, we're back. One house or two cottages?
0:26:00 > 0:26:01Let's find out.
0:26:06 > 0:26:09Well, two entrance gates tell their own story.
0:26:09 > 0:26:13Emil has decided to keep the building as two separate houses.
0:26:13 > 0:26:16They look great from the outside, but let's look inside.
0:26:34 > 0:26:37This rural renovation has turned out a treat.
0:26:37 > 0:26:42But what made Emil decide on keeping this as two cottages?
0:26:42 > 0:26:47We consulted a couple of local guys with knowledge of the market,
0:26:47 > 0:26:51and they suggested that two properties would be easier to sell,
0:26:51 > 0:26:57and with bigger margin than if it's only one property.
0:27:03 > 0:27:08The layout and standard of the finish is identical in both houses.
0:27:08 > 0:27:12Emil created an upstairs bathroom by partitioning the larger bedroom.
0:27:12 > 0:27:15But despite this, the rooms are still of a good size.
0:27:16 > 0:27:21So far, pretty straightforward for any experienced builder like Emil.
0:27:21 > 0:27:26But he did encounter some unexpected problems outside the house.
0:27:26 > 0:27:29When we purchased the property,
0:27:29 > 0:27:33we weren't aware that there's a shared septic tank
0:27:33 > 0:27:36and shared water supply.
0:27:36 > 0:27:40So we had to create another septic tank for one property
0:27:40 > 0:27:45and then get a new water supply for the second property.
0:27:45 > 0:27:47Also, we had shared access,
0:27:47 > 0:27:50which we didn't think that it's a good idea,
0:27:50 > 0:27:53so we extended the access
0:27:53 > 0:27:58so we can have the two properties with separate access points.
0:27:59 > 0:28:01Easier said than done.
0:28:01 > 0:28:03Being fenland,
0:28:03 > 0:28:06the terrain is crisscrossed by drainage channels or dykes,
0:28:06 > 0:28:10and extending the access meant having to install 18 metres of pipe
0:28:10 > 0:28:13so Emil could fill in one of those channels.
0:28:13 > 0:28:17With the dyke system being integral to farming in this area,
0:28:17 > 0:28:20enlisting the support of a next-door neighbour was crucial.
0:28:20 > 0:28:23# Me and the farmer Like brother, like sister
0:28:23 > 0:28:25# Getting on like hand and blister
0:28:25 > 0:28:29# Me and the farmer... #
0:28:29 > 0:28:32The farmer and his family have been very supportive,
0:28:32 > 0:28:36and it saved us a lot of problems.
0:28:36 > 0:28:40Otherwise, if they weren't happy with piping the dyke,
0:28:40 > 0:28:45it was going to be a major issue for separating the two accesses.
0:28:47 > 0:28:50As Emil is based in London,
0:28:50 > 0:28:53a daily commute to Lincolnshire was out of the question.
0:28:53 > 0:28:55He considered using a caravan,
0:28:55 > 0:28:58but in the end found a much simpler solution.
0:28:58 > 0:29:00With my dad, we came here,
0:29:00 > 0:29:06and the first week, we did one of the properties to be liveable.
0:29:06 > 0:29:11We installed an instant shower and we closed some of the rooms,
0:29:11 > 0:29:14and we just created a space where we stayed.
0:29:16 > 0:29:18With money saved on accommodation,
0:29:18 > 0:29:22was Emil's budget of 45 grand enough to complete the project?
0:29:23 > 0:29:29I'm always a bit optimistic about budget.
0:29:29 > 0:29:35And also, creating the access cost probably around £10,000, £12,000.
0:29:36 > 0:29:38We've spent...
0:29:38 > 0:29:41probably around £70,000.
0:29:42 > 0:29:45That's 25 grand over budget.
0:29:45 > 0:29:48But Emil fared better when it came to timescale,
0:29:48 > 0:29:51overrunning his six-month target by only four weeks.
0:29:55 > 0:29:59It's time to find out if that extra money has been well spent.
0:29:59 > 0:30:01We invited two local property experts along
0:30:01 > 0:30:05to find out what they think of Emil's renovation project.
0:30:06 > 0:30:09It's my first visit to the property. I'm very impressed.
0:30:09 > 0:30:12I like the way that character has been retained,
0:30:12 > 0:30:15but it's been refreshed throughout, so it's ready to move into.
0:30:15 > 0:30:18The standard of finish of the properties is very good,
0:30:18 > 0:30:20done to a very high standard.
0:30:20 > 0:30:23You can see he's put a lot of time and effort into the properties.
0:30:23 > 0:30:26Emil's total spend here has been £185,000,
0:30:26 > 0:30:29but how would the agents value the cottages
0:30:29 > 0:30:31on the current sales market?
0:30:33 > 0:30:37The properties should achieve, in my opinion, on the resale market,
0:30:37 > 0:30:40£180,000 each.
0:30:40 > 0:30:43In my opinion, each property is worth somewhere in the region
0:30:43 > 0:30:50of £170,000 and £175,000, with an initial asking price of £180,000.
0:30:52 > 0:30:54Emil has put both cottages up for sale,
0:30:54 > 0:30:57and if they each sold for 180 grand,
0:30:57 > 0:31:01he would achieve a pre-tax profit of £175,000,
0:31:01 > 0:31:03which would be an amazing result.
0:31:05 > 0:31:06But netting big profits
0:31:06 > 0:31:09hasn't been the only thing occupying this keen fisherman's thoughts
0:31:09 > 0:31:11while he's been living in Lincolnshire.
0:31:14 > 0:31:17We managed to fit in some good fishing trips,
0:31:17 > 0:31:23and I even managed to catch my biggest pike ever.
0:31:30 > 0:31:33You won't catch any pike in the English Channel,
0:31:33 > 0:31:35but if you've ever caught a ferry to Europe,
0:31:35 > 0:31:38chances are you may have passed through the town of Dover.
0:31:40 > 0:31:43# I am sailing
0:31:44 > 0:31:48# I am sailing... #
0:31:48 > 0:31:51Famous for its white cliffs and its castle,
0:31:51 > 0:31:54Dover is also home to the busiest ferry port in Europe,
0:31:54 > 0:31:58and particularly in the summer, the town can feel a lot busier
0:31:58 > 0:32:02than its official population of just over 30,000.
0:32:02 > 0:32:05Well, this road is on the outskirts of Dover town centre.
0:32:05 > 0:32:08It won't be for everyone, as it is pretty busy,
0:32:08 > 0:32:10and if you want to park outside your home, well,
0:32:10 > 0:32:13those double yellow lines are going to put a stop to that.
0:32:13 > 0:32:15Still, if you like fish and chips,
0:32:15 > 0:32:17there's a shop right across the road,
0:32:17 > 0:32:19but I'm here to see a three-bedroom terrace,
0:32:19 > 0:32:24and it had a guide price of £90,000 to 94,000, and here it is.
0:32:29 > 0:32:33So, in off that rather busy road to a...
0:32:33 > 0:32:35quite a calm, serene space.
0:32:35 > 0:32:38And freshly painted, which I always like to see.
0:32:38 > 0:32:41Downstairs reception room, double-glazed units,
0:32:41 > 0:32:43which is good, because it is really noisy out there.
0:32:43 > 0:32:45Into the second reception room.
0:32:45 > 0:32:48Now, again, you can see this has all been freshly painted,
0:32:48 > 0:32:51but I don't care, because over there, look...
0:32:52 > 0:32:57It's a great big area that's wet to the touch, and it's damp.
0:32:57 > 0:33:00So don't be fooled. When you see freshly painted rooms,
0:33:00 > 0:33:05it doesn't always mean that there are not problems lurking beneath.
0:33:05 > 0:33:08I think whoever buys this should rip up the lino,
0:33:08 > 0:33:11because there's likely to be little areas of damp underneath,
0:33:11 > 0:33:14because you can really smell it in here.
0:33:14 > 0:33:17Through into the kitchen, which is right at the back of the property.
0:33:17 > 0:33:19Now, this is a really nice sunny space,
0:33:19 > 0:33:23and I think you could even probably salvage some of these units,
0:33:23 > 0:33:25because they're not that bad.
0:33:25 > 0:33:27Bit of elbow grease.
0:33:27 > 0:33:28Big negative - look.
0:33:28 > 0:33:31You've got a bathroom downstairs,
0:33:31 > 0:33:34just off the kitchen, with the loo there.
0:33:34 > 0:33:35There's not even a shower space,
0:33:35 > 0:33:38so there are loads and loads of things you could try and do
0:33:38 > 0:33:40to upgrade this property.
0:33:40 > 0:33:42But if you go through your list and tick them all off,
0:33:42 > 0:33:44well, you could have quite a nice house,
0:33:44 > 0:33:47but I am intrigued to see what it's like upstairs.
0:33:48 > 0:33:51It's not all plain sailing up here, either.
0:33:51 > 0:33:53The main bedroom sits at the front of the house,
0:33:53 > 0:33:56with a central window looking into the street.
0:33:56 > 0:34:00It's spacious enough, but there are signs of sagging in here,
0:34:00 > 0:34:04gaps in the skirting and uneven floorboards.
0:34:04 > 0:34:07Could there be a structural issue to address?
0:34:07 > 0:34:10To the back of the house, there are two smaller rooms,
0:34:10 > 0:34:14one which houses the boiler, and you know what I'm going to say -
0:34:14 > 0:34:18always get boilers checked out by qualified professionals,
0:34:18 > 0:34:20especially when they're in a bedroom.
0:34:20 > 0:34:22Just when you thought that was it,
0:34:22 > 0:34:27there's a surprise in store on the landing - a mystery staircase.
0:34:27 > 0:34:28So, what is up here?
0:34:28 > 0:34:30Oh!
0:34:30 > 0:34:32That's why I love this programme.
0:34:32 > 0:34:34You never know what you're going to find,
0:34:34 > 0:34:37and I think this is probably the steepest staircase
0:34:37 > 0:34:38I've ever had to climb up.
0:34:38 > 0:34:42My goodness, look, there's no head height, the stairs are so shallow.
0:34:42 > 0:34:46Can I have a hand to get up, please? It's a bit tricky. Here we go.
0:34:46 > 0:34:49Oh, my goodness, look. Wow, it's another room.
0:34:49 > 0:34:53Now, the reason this isn't called bedroom number four
0:34:53 > 0:34:56is because it just doesn't comply with building regs.
0:34:56 > 0:34:58You'd actually need to think about a dormer extension
0:34:58 > 0:35:01if you wanted to legally apply for planning permission
0:35:01 > 0:35:02and call this bedroom number four.
0:35:02 > 0:35:05But at the moment, look, it's got floorboards up,
0:35:05 > 0:35:08it's in a bit of a state, there's carpet up.
0:35:08 > 0:35:10This place would just be good for storage at the moment,
0:35:10 > 0:35:14but it is something you could think about for the future.
0:35:14 > 0:35:17I'm not looking forward to going back down again. Mm.
0:35:19 > 0:35:22There's a lot to think about with this property.
0:35:22 > 0:35:25Obvious signs of damp, wonky floorboards,
0:35:25 > 0:35:29gaps in the skirting, and no upstairs bathroom.
0:35:29 > 0:35:33# I feel it in my fingers
0:35:33 > 0:35:36# I feel it in my toes... #
0:35:36 > 0:35:39Well, it's not an easy one to fall in love with,
0:35:39 > 0:35:42but will a local property expert feel differently about it?
0:35:42 > 0:35:45We invited one along to take a look around.
0:35:46 > 0:35:50It's a good-size property. It does need quite a bit of work in places.
0:35:50 > 0:35:52There is a damp problem, and floorboards.
0:35:52 > 0:35:55However, structurally, it seems OK.
0:35:56 > 0:35:58I think if someone was looking to sell the property,
0:35:58 > 0:36:01it would be best to move the bathroom onto the first floor,
0:36:01 > 0:36:02and take away one of the bedrooms.
0:36:02 > 0:36:04If someone was looking to rent,
0:36:04 > 0:36:06leave the bathroom where it is and use three bedrooms.
0:36:08 > 0:36:10The agent feels that, although losing a bedroom
0:36:10 > 0:36:13would knock around five grand off the selling price,
0:36:13 > 0:36:17the property would be easier to sell with an upstairs bathroom.
0:36:17 > 0:36:21But what about values if kept as a three-bedroom house?
0:36:21 > 0:36:24This property, as a three-bedroom, renovated,
0:36:24 > 0:36:28I believe would have a current market value of around £135,000.
0:36:28 > 0:36:32It could rent in the region of £700 to £725 per calendar month.
0:36:33 > 0:36:36Well, this terrace is not without its issues.
0:36:36 > 0:36:39You've got the damp, you've got that busy road, to name just a few.
0:36:39 > 0:36:43Still, it is a good size, and you could even convert that attic
0:36:43 > 0:36:45if you really wanted bedroom number four.
0:36:45 > 0:36:48So, who saw past the problems?
0:36:48 > 0:36:50Let's head to auction and find out.
0:36:52 > 0:36:55Onto lot 68, which is the last lot of the day,
0:36:55 > 0:36:57I'm sure you'll be pleased.
0:36:57 > 0:37:00It's a three-bedroom house for investment.
0:37:00 > 0:37:02Where are we starting on this one? Do I see £90,000?
0:37:02 > 0:37:06Got to be worth that sort of money. £90,000 to get me on the way.
0:37:06 > 0:37:08No? Give me 80, then. Give me 80.
0:37:08 > 0:37:11Give me 80 to start it. 80, can I say?
0:37:11 > 0:37:1480 I have. And 83 now. And 83...
0:37:14 > 0:37:17Not many people hung around for the final lot of the day,
0:37:17 > 0:37:20and only two bids were made on this house,
0:37:20 > 0:37:23neither of which reached the reserve price.
0:37:23 > 0:37:26It's not quite enough. You are very, very close.
0:37:26 > 0:37:28Come and have a chat with us now.
0:37:28 > 0:37:30That concludes the auction. Thank you very much.
0:37:30 > 0:37:32And that's exactly what happened.
0:37:33 > 0:37:35After a brief negotiation with the vendor,
0:37:35 > 0:37:38it was Naresh, here in the green jumper,
0:37:38 > 0:37:42and Anand, who agreed a price of 85,000.
0:37:42 > 0:37:44This house is the first auction purchase
0:37:44 > 0:37:45for what they hope will become
0:37:45 > 0:37:48a successful property development partnership.
0:37:48 > 0:37:52I met up with the boys back at the house to find out their plans.
0:37:52 > 0:37:55# Just the two of us
0:37:55 > 0:37:57# We can make it if we try
0:37:57 > 0:38:00# Just the two of us
0:38:00 > 0:38:03# Just the two of us... #
0:38:03 > 0:38:06- Well, congratulations, guys. Anand. - Thank you.- Naresh.- Thank you.
0:38:06 > 0:38:10Well done. So, whose idea was it to bid for this one at auction?
0:38:10 > 0:38:13We kind of decided to bid on a different property,
0:38:13 > 0:38:15but we couldn't get that one,
0:38:15 > 0:38:20and suddenly we realised that this property was not sold on auction.
0:38:20 > 0:38:22We didn't consider this.
0:38:22 > 0:38:26Although we looked at the property, this was out of our budget.
0:38:26 > 0:38:29So, once it was not sold, we decided we're going to go and approach,
0:38:29 > 0:38:31and get it on the same day.
0:38:31 > 0:38:34And did you guys want to come away with something on the day?
0:38:34 > 0:38:37Had you set your minds to going to auction and buying something?
0:38:37 > 0:38:42Absolutely. We just didn't want to walk out of the event empty-handed.
0:38:42 > 0:38:44- No matter what.- Yes.
0:38:44 > 0:38:46There could have been a million things wrong with this place.
0:38:46 > 0:38:48But we had quite a look around,
0:38:48 > 0:38:51because we had viewed a couple of properties down the lane,
0:38:51 > 0:38:54and this property was one of them.
0:38:54 > 0:38:56Yeah, we had viewed the problems,
0:38:56 > 0:38:59but we thought that we can just get away with it.
0:38:59 > 0:39:01I think that's a side...
0:39:01 > 0:39:03which is a bit riskier with auction properties,
0:39:03 > 0:39:05but if you look at the property
0:39:05 > 0:39:09and if you have made sure that, within a certain limit,
0:39:09 > 0:39:13you can take risks, then I think that's what we'll have to do.
0:39:13 > 0:39:14Walking around this property,
0:39:14 > 0:39:17you do feel there is a certain element of risk.
0:39:17 > 0:39:20What worries you about this property, would you say?
0:39:20 > 0:39:22The first thing, the moment we walked into the property
0:39:22 > 0:39:24the first time, was the floor.
0:39:24 > 0:39:26From the outside, you see it's carpeted and it looks nice,
0:39:26 > 0:39:29but the moment you remove the carpet, you can see a lot of water.
0:39:29 > 0:39:31I think we anticipated that there might be a problem
0:39:31 > 0:39:35with the damp-proofing below the concrete slab,
0:39:35 > 0:39:37and we might have to do some work.
0:39:37 > 0:39:42We're still planning to do some treatment on top of the concrete,
0:39:42 > 0:39:45but it's not as bad as we expected.
0:39:45 > 0:39:47What about when you stand upstairs,
0:39:47 > 0:39:50and the floors literally come away from the skirting board?
0:39:50 > 0:39:53I mean, I stood there and thought, "Ooh, is it subsidence?"
0:39:53 > 0:39:59- But you don't think so?- No, I think we looked under the floorboards.
0:39:59 > 0:40:02Floor joists are all looking OK.
0:40:02 > 0:40:05I think it's because it's a very old property.
0:40:05 > 0:40:08It has settled, but there are no cracks anywhere in the walls,
0:40:08 > 0:40:11which kind of gives us a bit of confidence
0:40:11 > 0:40:15that it's not very dangerous or expensive.
0:40:18 > 0:40:19So, the guys seem pretty confident
0:40:19 > 0:40:24that these issues can be sorted out without too much expense.
0:40:24 > 0:40:27Their aim is to put the house back on the sales market,
0:40:27 > 0:40:30but before that comes the renovation.
0:40:30 > 0:40:32We're going to put in a new kitchen
0:40:32 > 0:40:34and we're going to upgrade the bathroom.
0:40:34 > 0:40:38We're going to do some repair works in the loft room,
0:40:38 > 0:40:42just repairing the flooring so that it becomes even and stable,
0:40:42 > 0:40:45and we need to do some decoration in there.
0:40:45 > 0:40:49We'll do some work in the garden so that it's up to the standard,
0:40:49 > 0:40:52and some paved area outside the kitchen.
0:40:52 > 0:40:54- And also the entire flooring.- Yeah.
0:40:54 > 0:40:57I think the biggest item will be flooring
0:40:57 > 0:41:02where we need to spend some money on damp-proofing and floor finishes.
0:41:02 > 0:41:05What about the fact that you've got the bathroom downstairs?
0:41:05 > 0:41:07Would you like to try and relocate that?
0:41:07 > 0:41:10Initially, we had thought about moving the entire bathroom upstairs,
0:41:10 > 0:41:12but there is not quite a space.
0:41:12 > 0:41:14We will compromise on the space, but in addition,
0:41:14 > 0:41:16we thought we might put in a shower,
0:41:16 > 0:41:19but that will also compromise the space in the master bedroom.
0:41:19 > 0:41:21So, if you're going to appeal to a family,
0:41:21 > 0:41:25I think a bath makes more of a relevance to the family.
0:41:25 > 0:41:28Naresh and Anand have set aside three months,
0:41:28 > 0:41:32and quite a modest budget for the work they plan to do -
0:41:32 > 0:41:34£10,000 to £12,000.
0:41:34 > 0:41:37But to save money, they're going to do as much of it as they can,
0:41:37 > 0:41:40despite also having full-time jobs.
0:41:40 > 0:41:42Anand works in the travel industry,
0:41:42 > 0:41:45but Naresh's occupation is perhaps more useful
0:41:45 > 0:41:46for this kind of project.
0:41:48 > 0:41:51I have some experience in design and construction.
0:41:51 > 0:41:54- I've been designing buildings for 15 years.- Wow!
0:41:54 > 0:41:57So I have some technical knowledge of damp-proofing
0:41:57 > 0:42:00and construction techniques.
0:42:00 > 0:42:02OK, so now I know you know what you're talking about.
0:42:02 > 0:42:05So, obviously, your background does reflect in the fact that,
0:42:05 > 0:42:07- when you see something, you know how bad it is.- Yes, yeah.
0:42:07 > 0:42:09I've looked at the worst-case scenario,
0:42:09 > 0:42:13where we might have to remove the whole concrete flooring
0:42:13 > 0:42:15and tank it with DPC and insulation,
0:42:15 > 0:42:18but we might be able to use a slightly different solution,
0:42:18 > 0:42:21which is damp-proofing from the top of the concrete slabs,
0:42:21 > 0:42:24which will be an easier and cheaper way.
0:42:24 > 0:42:26I'm really excited to see the outcome.
0:42:26 > 0:42:29- Congratulations with this property. Good luck.- Thank you.- Thank you.
0:42:29 > 0:42:32- You're going to need it.- Thank you.
0:42:32 > 0:42:35So, friends for a couple of years, and now Naresh and Anand, well,
0:42:35 > 0:42:38they are venturing into the world of property development together
0:42:38 > 0:42:40for the first time.
0:42:40 > 0:42:42I'm a little worried, though, about the budget.
0:42:42 > 0:42:46It sounds pretty tight for the amount of work they intend to do,
0:42:46 > 0:42:49especially with that damp to contend with.
0:42:49 > 0:42:50How will they get on?
0:42:50 > 0:42:53Join me later in the programme and you can find out.
0:42:55 > 0:42:57Now, there are so many reasons
0:42:57 > 0:43:00why properties can go over in time and budget.
0:43:00 > 0:43:04Yes, even the most seemingly simple projects can have unexpected issues.
0:43:04 > 0:43:06Yes, have our two remaining buyers
0:43:06 > 0:43:09stuck to their budgets and deadlines? Let's find out.
0:43:11 > 0:43:14It may be a popular destination for trainspotters,
0:43:14 > 0:43:17but we're back in the Cheshire town of Crewe
0:43:17 > 0:43:19to catch up with this property,
0:43:19 > 0:43:22on the face of it, quite a simple-looking bungalow.
0:43:23 > 0:43:25But appearances can be deceptive.
0:43:25 > 0:43:28Inside, it was, indeed, fairly ordinary,
0:43:28 > 0:43:30but what lay beyond the back garden
0:43:30 > 0:43:33was the thing that got me really interested.
0:43:35 > 0:43:39What you've got here is a lot of space.
0:43:39 > 0:43:43Could this be a plot of land ripe for development?
0:43:43 > 0:43:47Despite knowing nothing about the property he was bidding on,
0:43:47 > 0:43:52it was Joel who forked out £94,000 for this place.
0:43:52 > 0:43:56A bit of a gamble, perhaps, but Joel was quick to realise its potential.
0:43:57 > 0:43:59Planning permission just going in at the moment
0:43:59 > 0:44:02for two pairs of three-bed semis.
0:44:02 > 0:44:05Quarter of a million quid's worth of profit there, perhaps.
0:44:05 > 0:44:07- Hopefully.- Ha!
0:44:07 > 0:44:08# Hey, you, the Rock Steady Crew
0:44:08 > 0:44:11# Show what you do Make a break, make a move... #
0:44:11 > 0:44:14In this town synonymous with railways,
0:44:14 > 0:44:17did Joel manage to keep his development on track,
0:44:17 > 0:44:19or was there a derailment along the way?
0:44:23 > 0:44:27Well, two years have passed since our first visit, and that,
0:44:27 > 0:44:31perhaps, hints that there have been alterations to Joel's timetable.
0:44:36 > 0:44:37Well, from the outside,
0:44:37 > 0:44:41the bungalow is looking a lot more presentable, but what about inside?
0:45:00 > 0:45:03Joel's done a lovely job throughout the house,
0:45:03 > 0:45:07but taking pride of place in this project must be the kitchen.
0:45:08 > 0:45:09OK, so in the kitchen area,
0:45:09 > 0:45:14there used to be a chimney breast there, which we've removed,
0:45:14 > 0:45:17which then has obviously given the kitchen a much larger feel.
0:45:17 > 0:45:20Then over here, there was a concrete slab.
0:45:20 > 0:45:24We've removed that, so therefore, a dining table can be installed.
0:45:24 > 0:45:26All in all, it's a much larger kitchen
0:45:26 > 0:45:30that's usable for the next person that buys it.
0:45:30 > 0:45:32Joel has dealt with all the electrical work,
0:45:32 > 0:45:35but brought in specialist trades for the fitting of the bathroom,
0:45:35 > 0:45:37the kitchen, and the carpets,
0:45:37 > 0:45:40plus all the plumbing and tiling that was required.
0:45:43 > 0:45:46If all that sounds quite expensive, well,
0:45:46 > 0:45:49there were some bargains picked up along the way.
0:45:49 > 0:45:51My wife managed to get the fireplace,
0:45:51 > 0:45:55complete surround fire, for 99 pence, which is our best buy.
0:45:57 > 0:46:02That absolute steal helped reduce Joel's spend to 13,000,
0:46:02 > 0:46:04£2,000 under budget.
0:46:04 > 0:46:07And impressive as the bungalow has turned out,
0:46:07 > 0:46:09it's only a small part of the story.
0:46:12 > 0:46:14Joel was hoping to get planning permission
0:46:14 > 0:46:16for four semidetached bungalows
0:46:16 > 0:46:19on the plot attached to the back garden,
0:46:19 > 0:46:23but looking at the site now, it's clear things haven't gone to plan.
0:46:26 > 0:46:30OK, these are the second lot of plans that got submitted.
0:46:30 > 0:46:32The first planning application that we put in
0:46:32 > 0:46:36was originally for four semidetached properties.
0:46:36 > 0:46:39That took around six months, and that got refused.
0:46:39 > 0:46:44So then we went back in again with a complete rejig of the site,
0:46:44 > 0:46:47and it went in for four detached bungalows.
0:46:47 > 0:46:50That was nearly 12 months from start to finish,
0:46:50 > 0:46:52getting the application through.
0:46:52 > 0:46:55So this is going to be the site layout across here.
0:46:55 > 0:46:58You access this via the right-hand side of the bungalow,
0:46:58 > 0:47:01the driveway, and then across the area across the back,
0:47:01 > 0:47:03you've got four plots there,
0:47:03 > 0:47:06each with own driveway and parking facilities.
0:47:06 > 0:47:09They're all two-bedroom, they've got kitchen, lounge, bathroom.
0:47:09 > 0:47:12They're perfect, really, for the retired person.
0:47:12 > 0:47:14# Let's make some plans
0:47:14 > 0:47:18# Cos they can go wrong... #
0:47:18 > 0:47:21Joel is the first to admit
0:47:21 > 0:47:25that he underestimated how long the planning process would take,
0:47:25 > 0:47:29but it gave him plenty of time for the job of clearing the land.
0:47:29 > 0:47:32We got a specialist company in to remove the asbestos roofs,
0:47:32 > 0:47:36then it was safe for the demolition guys to come in.
0:47:36 > 0:47:38There was about 20-odd skips
0:47:38 > 0:47:40to clear the amount of rubbish that was there.
0:47:40 > 0:47:43There was all sorts of things there. We found a few organs.
0:47:43 > 0:47:46The previous owner used to like playing the organ, apparently,
0:47:46 > 0:47:49so we found three or four of those, but they ended up getting skipped.
0:47:49 > 0:47:54I know there'll be a few organists out there who have just fainted.
0:47:54 > 0:47:55Sorry about that.
0:47:55 > 0:47:59MUSIC: Organ Toccata by Johann Sebastian Bach
0:48:02 > 0:48:05From the outset, Joel knew this venture could be a gamble,
0:48:05 > 0:48:08but he was confident that, in the worst-case scenario,
0:48:08 > 0:48:10he would get his money back.
0:48:10 > 0:48:13There's one way to find out how likely that will be,
0:48:13 > 0:48:16and that's to ask two local property experts to see what they think
0:48:16 > 0:48:20of Joel's refurbished bungalow and the plot of land behind it.
0:48:22 > 0:48:25The property is very good. It's been finished to a nice high standard.
0:48:25 > 0:48:28Typical of what buyers are looking for in the area -
0:48:28 > 0:48:30it's clean and modern, and it's low-maintenance.
0:48:30 > 0:48:32It's a really nice bungalow.
0:48:32 > 0:48:34It's been done to a very high standard.
0:48:34 > 0:48:36It's got a really nice kitchen and bathroom.
0:48:37 > 0:48:41The agents both agree this bungalow could achieve a sale
0:48:41 > 0:48:43of around 125,000.
0:48:43 > 0:48:48And, given that Joel has spent a total of £107,000 on the purchase
0:48:48 > 0:48:52and renovation, he will be left with a pre-tax profit of 18,000.
0:48:52 > 0:48:54But what about the building plot?
0:48:54 > 0:48:57With planning permission granted for four bungalows,
0:48:57 > 0:49:00how much would each of these properties be worth
0:49:00 > 0:49:02on the sales market?
0:49:02 > 0:49:04A new-build two-bed bungalow in this area
0:49:04 > 0:49:07would be worth between £110,000 and £120,000.
0:49:07 > 0:49:11The new-build bungalows, when finished,
0:49:11 > 0:49:14would be £115,000 per bungalow.
0:49:15 > 0:49:18A sale at £115,000 each for these new-builds
0:49:18 > 0:49:22would make a grand total of 460,000.
0:49:25 > 0:49:27Minus build costs and planning costs,
0:49:27 > 0:49:33Joel could possibly earn a pre-tax profit of over £200,000.
0:49:33 > 0:49:36But two years into the project, and without a brick laid,
0:49:36 > 0:49:40Joel decided to head back to the auction room, but this time to sell.
0:49:42 > 0:49:44We did want to construct the properties,
0:49:44 > 0:49:48but due to the timeframe, I think it's taken too long, and, really,
0:49:48 > 0:49:51we just want to hand the project over to somebody else now,
0:49:51 > 0:49:54and then maybe buy something closer to home
0:49:54 > 0:49:55and maybe do a project there.
0:49:56 > 0:49:59And the great news is that both the bungalow
0:49:59 > 0:50:04and the plot have been sold, for a total of £210,000.
0:50:04 > 0:50:06Taking away Joel's purchase, renovation,
0:50:06 > 0:50:09planning and site preparation costs,
0:50:09 > 0:50:12which total £137,000,
0:50:12 > 0:50:14means that he walks away with a profit
0:50:14 > 0:50:17of £73,000 before tax and sales fees.
0:50:17 > 0:50:21So, will Joel be heading straight back to the auction?
0:50:22 > 0:50:25At the moment, we're going to relax for probably six months.
0:50:25 > 0:50:27Well-earned relax.
0:50:27 > 0:50:29But you never know - you might see me in an auction room
0:50:29 > 0:50:32just randomly buying houses that I don't look at again!
0:50:37 > 0:50:40The sound of the surf, seagulls and ships
0:50:40 > 0:50:42means that we're back in Dover.
0:50:42 > 0:50:45This three-bed terrace house was for sale at auction,
0:50:45 > 0:50:49with a guide price of £90,000 to £94,000,
0:50:49 > 0:50:53and several worrying things cropped up on my tour of the property.
0:50:54 > 0:50:58It's a great big area that's wet to the touch, and it's damp.
0:51:00 > 0:51:03Signs of rising damp on the ground floor
0:51:03 > 0:51:06and, upstairs, wonky floors and gaps at the skirting,
0:51:06 > 0:51:08made me wonder if this place
0:51:08 > 0:51:12was hiding some potentially nasty surprises for the new owner.
0:51:12 > 0:51:15However, the biggest surprise I uncovered
0:51:15 > 0:51:18was up this very steep staircase.
0:51:18 > 0:51:22Oh, my goodness, look. Wow, it's another room.
0:51:22 > 0:51:26Now, the reason this isn't called bedroom number four
0:51:26 > 0:51:28is because it just doesn't comply with building regs,
0:51:28 > 0:51:32but it is something you could think about for the future.
0:51:33 > 0:51:36And the immediate future of this house was in the hands
0:51:36 > 0:51:40of first-time property developers Naresh and Anand.
0:51:40 > 0:51:43The guys bought this place for £85,000,
0:51:43 > 0:51:45and weren't at all fazed
0:51:45 > 0:51:48by the problems they would have to overcome.
0:51:48 > 0:51:50I think we anticipated that there might be a problem
0:51:50 > 0:51:54with the damp-proofing below the concrete slab,
0:51:54 > 0:51:57but it's not as bad as we expected.
0:51:58 > 0:52:00Juggling work and family commitments
0:52:00 > 0:52:03whilst trying to stick to a maximum 12-grand budget
0:52:03 > 0:52:06would be a big task for experienced developers,
0:52:06 > 0:52:09let alone these two enthusiastic beginners.
0:52:10 > 0:52:13Naresh and Anand figured three months would be sufficient time
0:52:13 > 0:52:18to complete this project, but I wondered if that was realistic.
0:52:19 > 0:52:21Six months later, we're back.
0:52:21 > 0:52:25Has enthusiasm swept them over the finish line?
0:52:47 > 0:52:51If you're thinking that kitchen looks bigger, you'll be correct.
0:52:51 > 0:52:55Naresh and Anand had a rethink over the layout,
0:52:55 > 0:52:58and decided they could move the bathroom upstairs
0:52:58 > 0:53:00and retain the three bedrooms.
0:53:00 > 0:53:04We thought that having a bathroom upstairs
0:53:04 > 0:53:07will be useful for people with a young family,
0:53:07 > 0:53:12to use it in the night, so they don't have to come down all the way.
0:53:12 > 0:53:16That's the reason why we used the main bedroom area,
0:53:16 > 0:53:18which was quite big,
0:53:18 > 0:53:24so we used some of that area and created a bathroom upstairs.
0:53:24 > 0:53:25We had our own problems
0:53:25 > 0:53:28in terms of designing how we can move the bathroom,
0:53:28 > 0:53:30because we wanted a larger family bath.
0:53:30 > 0:53:33We just didn't want to put a small bath into the property,
0:53:33 > 0:53:36so we are fairly pleased with what we have achieved.
0:53:39 > 0:53:42The bedrooms have been fully redecorated and carpeted,
0:53:42 > 0:53:44and the boiler has been boxed off,
0:53:44 > 0:53:47which makes things a little neater in here.
0:53:47 > 0:53:49Talking of neat, an overlapping stair
0:53:49 > 0:53:52makes access to the attic slightly easier,
0:53:52 > 0:53:55and although it still can't be classed as a bedroom,
0:53:55 > 0:53:57it would make an ideal home office.
0:53:57 > 0:54:00And it looks like the dodgy floorboards
0:54:00 > 0:54:01have all been sorted out, too.
0:54:04 > 0:54:07This building is one of the oldest in the area, and over the years,
0:54:07 > 0:54:11there has been historical changes with the building
0:54:11 > 0:54:14and the structure, so we have completely levelled the floors,
0:54:14 > 0:54:15put in the self-levelling.
0:54:15 > 0:54:18And, also, we have strengthened the joists
0:54:18 > 0:54:20and added different joists to it.
0:54:20 > 0:54:23And, also, the floor panels are completely straight now.
0:54:24 > 0:54:28But the joists weren't my main concern in here.
0:54:28 > 0:54:30Rising damp was an issue on the ground floor,
0:54:30 > 0:54:35so I'm wondering how much work was required to put that right.
0:54:35 > 0:54:38I think there were lots of different problems.
0:54:38 > 0:54:41Lack of maintenance, and some leaking pipes,
0:54:41 > 0:54:45and not cleaning the area below the joists.
0:54:45 > 0:54:50So we've done all that work, we've got the pipes repaired,
0:54:50 > 0:54:52and we've done some tanking work,
0:54:52 > 0:54:57even on the walls, so that damp issues can be resolved.
0:54:58 > 0:55:00When we first came here,
0:55:00 > 0:55:03you couldn't really call this space a garden.
0:55:03 > 0:55:07But Naresh and Anand have been busy with a spade and wheelbarrow
0:55:07 > 0:55:09to transform this into an area
0:55:09 > 0:55:12that would really appeal to a family with young children.
0:55:14 > 0:55:18Despite their hard work, the original estimate of three months
0:55:18 > 0:55:21proved only to be half the time that they needed,
0:55:21 > 0:55:24and even after six months, there's still a few things to finish off
0:55:24 > 0:55:27before the guys get this place on the market.
0:55:27 > 0:55:31How much did they end up spending on this project?
0:55:31 > 0:55:34Our budget was 10,000 to 12,000 at the beginning,
0:55:34 > 0:55:36but we didn't stick to that.
0:55:36 > 0:55:38We spent a lot more than that.
0:55:38 > 0:55:42We've ended up, I think, almost spending 21,000.
0:55:42 > 0:55:45What we wanted to achieve in the property
0:55:45 > 0:55:50was a quality design and decor, and the complete outlay of the property,
0:55:50 > 0:55:52so we had to spend extra, for example,
0:55:52 > 0:55:54moving the bathroom upstairs.
0:55:54 > 0:55:57Bit of a challenge that we had to work around with it,
0:55:57 > 0:55:59but most of the works, like the floorings,
0:55:59 > 0:56:01and even building a stud wall in the bathroom,
0:56:01 > 0:56:03we have managed to do ourselves.
0:56:04 > 0:56:06With six months of toil completed,
0:56:06 > 0:56:09the boys are probably looking forward
0:56:09 > 0:56:11to some well-deserved rest and relaxation.
0:56:14 > 0:56:18But not before we've heard from two local property experts.
0:56:18 > 0:56:22Do they reckon the standard of the finish is up to the mark?
0:56:22 > 0:56:24I think the finish is fantastic.
0:56:24 > 0:56:28I think the idea of bringing the bathroom upstairs
0:56:28 > 0:56:29is a really good idea,
0:56:29 > 0:56:33because it really does lend itself to families living here.
0:56:33 > 0:56:35The layout here works reasonably well.
0:56:35 > 0:56:37You've got two decent-size reception rooms downstairs,
0:56:37 > 0:56:39and a fair-size kitchen.
0:56:39 > 0:56:41Upstairs, it has been adapted a little bit
0:56:41 > 0:56:44to make the bedroom smaller, but you have got a nice bathroom.
0:56:46 > 0:56:47Onto valuations now.
0:56:47 > 0:56:53Naresh and Anand have spent a total of £106,000 on this project.
0:56:53 > 0:56:57So what price could they achieve on the current sales market?
0:56:57 > 0:56:59If this house was sold now in the current market,
0:56:59 > 0:57:03I think it would achieve somewhere circa £150,000.
0:57:03 > 0:57:07I would expect to achieve in the region of £150,000.
0:57:07 > 0:57:12I think that's what we were kind of expecting.
0:57:12 > 0:57:15That's in the same region, so we're quite happy with that.
0:57:15 > 0:57:20And with a potential pre-tax profit of £44,000,
0:57:20 > 0:57:24I'm not surprised they're happy, but what about rental values?
0:57:25 > 0:57:28I'd expect this property to be rented out
0:57:28 > 0:57:30around the £750 per calendar month.
0:57:30 > 0:57:33I think the rental value here for it, unfurnished,
0:57:33 > 0:57:36is going to be around £700 per calendar month.
0:57:36 > 0:57:38Rental was never an option for us,
0:57:38 > 0:57:43especially because it's too far for us to maintain it, anyway.
0:57:43 > 0:57:47- So, yeah, definitely, we'd like to sell the house.- Sell it.
0:57:47 > 0:57:50So this house is going straight onto the sales market,
0:57:50 > 0:57:55but what have Naresh and Anand got planned for the future?
0:57:55 > 0:57:58Immediately, we'll start looking at auction catalogues
0:57:58 > 0:58:00and try and find the best one.
0:58:04 > 0:58:06Have these stories inspired you?
0:58:06 > 0:58:09Could you take the plunge on a project of your own?
0:58:09 > 0:58:12Well, we'll have more Homes Under The Hammer for you next time,
0:58:12 > 0:58:14and you never know, it could be you.
0:58:14 > 0:58:16- Goodbye.- Goodbye.- Bye.