0:00:01 > 0:00:02Hello and welcome to the show.
0:00:02 > 0:00:04Now, one thing we notice here
0:00:04 > 0:00:07on Homes Under The Hammer week after week
0:00:07 > 0:00:11is that no matter where you are in the country, there are good deals
0:00:11 > 0:00:16- to be had.- Yes, from Glasgow to Grimsby, from Glossop to Gloucester,
0:00:16 > 0:00:18it's really important to look around
0:00:18 > 0:00:20- your local area and see what's on offer.- Yes, you never know.
0:00:20 > 0:00:23You might find exactly what you're looking for
0:00:23 > 0:00:25down at your local property auction.
0:00:51 > 0:00:54Whatever you're thinking of spending on your project,
0:00:54 > 0:00:57making the right decisions and doing the hard work will go a long way.
0:00:57 > 0:01:00Definitely. Especially when everyone's trying to add value
0:01:00 > 0:01:02to their property.
0:01:02 > 0:01:05Sometimes, a bit of elbow grease is just the thing you need.
0:01:05 > 0:01:08So, whether any of today's buyers ready to get their hands dirty?
0:01:08 > 0:01:10Let's find out what they bought.
0:01:13 > 0:01:14I'm in Merseyside,
0:01:14 > 0:01:15at this three-bed terraced
0:01:15 > 0:01:19that gives a whole new meaning to "a room with a view".
0:01:19 > 0:01:21Now, that is a bit weird.
0:01:22 > 0:01:26This house in Derbyshire has already been converted to two flats
0:01:26 > 0:01:28but it's still a long way off.
0:01:28 > 0:01:32Everything just needs ripped out and taken down.
0:01:32 > 0:01:34And I'll SPORE you the details,
0:01:34 > 0:01:39but this mid-terrace in Porth has much room for improvement.
0:01:39 > 0:01:42You've got mushrooms growing in the corner.
0:01:44 > 0:01:47All these properties have been sold at auction and we'll find out
0:01:47 > 0:01:51who bought them and what they paid when they went under the hammer.
0:01:51 > 0:01:52Sold!
0:01:56 > 0:02:00I'm in Seacombe in Wallasey on the Wirral peninsula.
0:02:00 > 0:02:03Sitting across the Mersey from the docks at central Liverpool,
0:02:03 > 0:02:08Wallasey once accessed the city by ferry, until the Kingsway Tunnel was
0:02:08 > 0:02:13opened in 1971, connecting Seacombe with northern Liverpool.
0:02:13 > 0:02:16This crucial transport link means the Wirral gives commuters
0:02:16 > 0:02:20a chance to escape hectic urban life and, for my money,
0:02:20 > 0:02:22has the best views of the city.
0:02:24 > 0:02:28Just a stone's throw from the entrance to the Wallasey tunnel
0:02:28 > 0:02:29is the property I'm here to see.
0:02:29 > 0:02:3235-£45,000
0:02:32 > 0:02:35was the guide price for this three-bedroom mid-terrace.
0:02:35 > 0:02:37Let's have a look.
0:02:37 > 0:02:41# In my Mersey paradise... #
0:02:42 > 0:02:45Those kind of numbers really are quite shocking
0:02:45 > 0:02:47when you first hear them, aren't they? It's not a lot of money...
0:02:47 > 0:02:49..at all, for a house.
0:02:49 > 0:02:51But what do you get? Well, in its day,
0:02:51 > 0:02:55I think this would have been a middle-level worker house.
0:02:55 > 0:02:57It feels a bit grander than your average terrace.
0:02:57 > 0:02:59So, through the front door,
0:02:59 > 0:03:02a little internal porch area there with a door,
0:03:02 > 0:03:05which is nice to keep the cold and the noise out.
0:03:05 > 0:03:08Front sitting room, which is in reasonable condition.
0:03:08 > 0:03:11You've got a bay window. It's not a bad size.
0:03:12 > 0:03:14Stairs up to your bedrooms there, obviously.
0:03:14 > 0:03:17Rear sitting room. You've seen designs like this 1,000 times,
0:03:17 > 0:03:20of course. But, you know, they were designed like this
0:03:20 > 0:03:22because it's a sort of...
0:03:22 > 0:03:25what else can you do? It sort of works.
0:03:25 > 0:03:26I won't even say, you know,
0:03:26 > 0:03:28that wall should really go, open it all up.
0:03:28 > 0:03:32A few signs of possible damp or remedial work to sort out damp
0:03:32 > 0:03:34in that corner there. In fact, all along that wall,
0:03:34 > 0:03:36which you'd want to probably have checked out
0:03:36 > 0:03:38to make sure it's been done properly.
0:03:38 > 0:03:41And the central heating looks like it might be a bit old.
0:03:41 > 0:03:44But then, through to the rear of the property where you have got
0:03:44 > 0:03:47a half-decent sized kitchen, actually.
0:03:47 > 0:03:50Probably built as an extension at some point.
0:03:50 > 0:03:52But it's a nice size.
0:03:52 > 0:03:53It's a good space.
0:03:53 > 0:03:57It needs, obviously, a new kitchen set-up in here.
0:03:57 > 0:03:58Apart from that...
0:04:00 > 0:04:02..yeah.
0:04:02 > 0:04:03It's good.
0:04:03 > 0:04:06MUSIC: I Got You (I Feel Good) By James Brown
0:04:21 > 0:04:25Well, upstairs, the fairly sensible layout continues.
0:04:25 > 0:04:28Something to note - no particular box room.
0:04:28 > 0:04:30Which you might have expected.
0:04:30 > 0:04:31All the bedrooms a good size.
0:04:31 > 0:04:33This one above the kitchen,
0:04:33 > 0:04:35obviously a kid's bedroom at some point.
0:04:35 > 0:04:38And it's a nice-size space.
0:04:38 > 0:04:42The extension here definitely benefits the property massively.
0:04:42 > 0:04:45But yeah. Let's carry on exploring.
0:04:47 > 0:04:50MUSIC: I'm The Urban Spaceman by Bonzo Dog Doo Dah Band
0:05:00 > 0:05:03As well as the nice and spacey blue room,
0:05:03 > 0:05:06there's also a smaller cream bedroom
0:05:06 > 0:05:11and the rather fetching pink master bedroom with an additional feature.
0:05:19 > 0:05:24Now, that is a bit weird. Yes, it's an internal window.
0:05:25 > 0:05:30It's an internal window between one of the decently sized bedrooms
0:05:30 > 0:05:31and the bathroom.
0:05:33 > 0:05:35Now, in principle, I can see what they're doing with that.
0:05:35 > 0:05:38It lets a lot of natural light into this internal room.
0:05:38 > 0:05:39On the other hand, can you imagine
0:05:39 > 0:05:41getting up in the middle of the night
0:05:41 > 0:05:43and having a wee, the lights would go on,
0:05:43 > 0:05:45the person in there would be disturbed.
0:05:45 > 0:05:48There's just something not quite right about it,
0:05:48 > 0:05:50so, I think probably block it up, on balance.
0:05:52 > 0:05:56I think now I'm just nit-picking, because this is a good house.
0:05:56 > 0:05:59What did the agent from the auction house who sold this lot
0:05:59 > 0:06:04think of this terrace, guided at 35-40,000?
0:06:04 > 0:06:06It's a good-sized three-bed terrace.
0:06:06 > 0:06:09It's got a extended kitchen which is bigger than normal.
0:06:09 > 0:06:10And it obviously has got
0:06:10 > 0:06:12three bedrooms and a bathroom upstairs.
0:06:12 > 0:06:14It's double glazed, centrally heated.
0:06:14 > 0:06:17It just needs, mainly, decor, carpeting,
0:06:17 > 0:06:19and then it would make a good investment.
0:06:20 > 0:06:22Speaking of investments,
0:06:22 > 0:06:24what's the stronger market in this part of Wallasey?
0:06:26 > 0:06:27So, the local property market
0:06:27 > 0:06:29in this area, at the moment, is improving.
0:06:29 > 0:06:33It's more for a buy-to-let investor, rather than an owner occupier.
0:06:35 > 0:06:38So, renting could be the way to go.
0:06:38 > 0:06:42But what could the renovated house be worth on the sales market?
0:06:42 > 0:06:45I think once it's done to a high standard,
0:06:45 > 0:06:49the market value would be in the region of between 60 and £65,000.
0:06:49 > 0:06:52There still could be a profit to be made in resale
0:06:52 > 0:06:54if you got it close to the guide price.
0:06:54 > 0:06:55But what about rental figures?
0:06:56 > 0:06:59If this was to be put on the rental market,
0:06:59 > 0:07:03the average rental income would be in the region of £500-£550
0:07:03 > 0:07:04per calendar month.
0:07:05 > 0:07:08Well, it's a good house for a very low guide price.
0:07:08 > 0:07:12Who was tempted? Let's find out when it went under the hammer.
0:07:14 > 0:07:18This is a three-bedroom mid-terrace house.
0:07:18 > 0:07:20Two phone bidders. What is it?
0:07:20 > 0:07:2235? Can I take the lower end?
0:07:22 > 0:07:23Thank you very much, sir.
0:07:23 > 0:07:25At 35. We're in. 36.
0:07:26 > 0:07:29OK. So, either of the phones at 36,000?
0:07:29 > 0:07:31Thank you. 37, sir.
0:07:31 > 0:07:3238. Yeah.
0:07:32 > 0:07:3438. 39,
0:07:34 > 0:07:36sir? 40.
0:07:36 > 0:07:38Let's speed this up. Can I take 40 from you?
0:07:38 > 0:07:39Thank you very much. Can I say 41?
0:07:39 > 0:07:40Excellent. Can I say 42?
0:07:40 > 0:07:4243?
0:07:42 > 0:07:4344?
0:07:43 > 0:07:4445?
0:07:44 > 0:07:4546?
0:07:45 > 0:07:4747?
0:07:47 > 0:07:48No? All right.
0:07:48 > 0:07:51So, would you like to take 46 and a half, sir?
0:07:51 > 0:07:52You would. 47 to you now, sir?
0:07:52 > 0:07:5547. 47 and a half now.
0:07:55 > 0:07:5748? And a half.
0:07:58 > 0:08:01You, sir. Left it late. At £48,000, you're out in front.
0:08:01 > 0:08:03Anyone want to contest this at 48 and a half thousand pounds.
0:08:03 > 0:08:06Phone or in the room?
0:08:06 > 0:08:08For the very first time, £48,000.
0:08:08 > 0:08:11Second time at £48,000.
0:08:11 > 0:08:13You're back in, sir, at half.
0:08:13 > 0:08:14So, I'm looking for 49.
0:08:14 > 0:08:18And I have it straight away. 49 and a half?
0:08:18 > 0:08:19Yep?
0:08:19 > 0:08:21Thank you. 50?
0:08:21 > 0:08:24And another half? Thought that might be your response.
0:08:24 > 0:08:26At £50,000?
0:08:26 > 0:08:29A fairly bold number. Anyone coming in above 50 and a half?
0:08:29 > 0:08:32He just wants to hear what the result is, I'm guessing.
0:08:32 > 0:08:34Anybody else at 50.5? This side of the room, sitting down.
0:08:34 > 0:08:37If not, the gentleman right in front of me. 50,000, once.
0:08:37 > 0:08:3850,000, twice.
0:08:38 > 0:08:41Last chance. Are we all done at £50,000?
0:08:41 > 0:08:43Sold.
0:08:43 > 0:08:47The successful bid of 50 grand came from refrigeration
0:08:47 > 0:08:49and air-conditioning engineer Dave.
0:08:50 > 0:08:53And I caught up with him for a chat about his new acquisition.
0:08:53 > 0:08:56# Daddy, daddy cool. #
0:08:58 > 0:08:59Dave, good to meet you.
0:08:59 > 0:09:01- Yep.- Congratulations.
0:09:01 > 0:09:03Tell me why you wanted to buy this place.
0:09:03 > 0:09:05Just as an investment for the future.
0:09:05 > 0:09:09Just to rent it out as part of a pension plan, really.
0:09:09 > 0:09:11Is this something you've done before?
0:09:11 > 0:09:14We've bought a house at auction before, three years ago,
0:09:14 > 0:09:15it was a big house. Total wreck.
0:09:15 > 0:09:19So we've done that one and then we just decided to do this one.
0:09:19 > 0:09:21So, why this particular house?
0:09:21 > 0:09:23Obviously, I'm not from Liverpool.
0:09:23 > 0:09:25I'm from London, but my girlfriend's from Liverpool.
0:09:25 > 0:09:28So, we're based up here. Even for investment purposes,
0:09:28 > 0:09:32it seems more sensible to buy here for renting purposes.
0:09:32 > 0:09:34Yes, a similar property in London, presumably,
0:09:34 > 0:09:36would be ten times the price.
0:09:36 > 0:09:39- Yes.- What about this house in particular?
0:09:39 > 0:09:41What was it that you liked?
0:09:41 > 0:09:43This is the first time I've been in here.
0:09:43 > 0:09:45- Oh, really? You didn't see it beforehand?- No.
0:09:45 > 0:09:47- Did your girlfriend see it? - She did.
0:09:47 > 0:09:49- Yes.- Right, OK. So you trusted her?
0:09:49 > 0:09:50Sort of.
0:09:52 > 0:09:54He's only kidding, Jan.
0:09:54 > 0:09:55You've done well here.
0:09:55 > 0:09:57Local knowledge and all that.
0:09:57 > 0:10:01This being a former local housing association house
0:10:01 > 0:10:03suggests that it will generally be well maintained.
0:10:03 > 0:10:05So, take a bow, Jan.
0:10:05 > 0:10:08Now that Dave has it, what has he got planned?
0:10:08 > 0:10:11Obviously, it's going to need a new bathroom, new kitchen.
0:10:11 > 0:10:13Once I get into having a look properly,
0:10:13 > 0:10:15- maybe change one or two things. I'm not sure yet.- Yes, yes.
0:10:15 > 0:10:17Do you like the layout? Do you think it works OK?
0:10:17 > 0:10:19Yeah, I think it's pretty good.
0:10:19 > 0:10:22Right, OK. Obviously, what about the bathroom upstairs?
0:10:22 > 0:10:25On first glance, it's not ideal to have that window there, is it?
0:10:25 > 0:10:27Actually, I'm not sure of too many options.
0:10:27 > 0:10:30No. I'll probably just take the window out, though.
0:10:30 > 0:10:32Just make it so that it is contained and tiled.
0:10:32 > 0:10:36- OK.- Maybe change it around a bit whilst I do it.
0:10:36 > 0:10:39OK. There's no natural light but at least
0:10:39 > 0:10:41you wouldn't have the window into the bedroom.
0:10:41 > 0:10:43Now, it's strange having the window into the bedroom.
0:10:43 > 0:10:45Someone's asleep and someone's in there.
0:10:45 > 0:10:47So, how much of the work is going to be done by you
0:10:47 > 0:10:49and how much is it going to be getting other people in?
0:10:49 > 0:10:52- Virtually all of it by myself. - Yeah?- Yep.- Are you handy?
0:10:52 > 0:10:54Very handy.
0:10:54 > 0:10:57Any mechanical services, I can generally do myself.
0:10:57 > 0:11:00Most other bits, no problem.
0:11:01 > 0:11:03So, being handy comes in,
0:11:03 > 0:11:05well, handy.
0:11:05 > 0:11:07That will definitely save some cash.
0:11:07 > 0:11:08But it could slow things down a bit
0:11:08 > 0:11:10as Dave does work full-time in London.
0:11:12 > 0:11:13What is the timescale?
0:11:13 > 0:11:15I would imagine round about four to six weeks.
0:11:15 > 0:11:18- OK.- Because it would mainly be weekends.
0:11:18 > 0:11:20Maybe a couple of long weekends.
0:11:20 > 0:11:23OK. Then is the plan to rent it out, or what?
0:11:23 > 0:11:26- Yeah, rent it out. Long-term investment.- Long-term.
0:11:26 > 0:11:29What kind of money have you set aside for the work?
0:11:29 > 0:11:31I haven't actually thought about it.
0:11:31 > 0:11:35Whatever it needs, but looking at the property today,
0:11:35 > 0:11:38I would imagine probably about £4,000 or £5,000 should do it.
0:11:38 > 0:11:40What kind of rental do you think you might achieve?
0:11:40 > 0:11:44Looking at other prices in the area, probably round about £500, £550.
0:11:44 > 0:11:45- OK.- That's the sort of figure
0:11:45 > 0:11:48I think most are generally going for around here.
0:11:48 > 0:11:49In total, then, your investment
0:11:49 > 0:11:51with your three, four grand will be what?
0:11:51 > 0:11:53In total, probably round about 55.
0:11:53 > 0:11:5555 grand?
0:11:55 > 0:11:57And you're getting that kind of return.
0:11:57 > 0:11:59It's pretty impressive, isn't it?
0:11:59 > 0:12:01Yeah, it does sound really good, so...
0:12:01 > 0:12:04That's what I'm hoping for. Maybe I'm wrong,
0:12:04 > 0:12:06but it's a long-term investment, anyway.
0:12:06 > 0:12:08And how are you going to manage it?
0:12:09 > 0:12:10Probably ourselves.
0:12:10 > 0:12:12We've got another place that is rented out
0:12:12 > 0:12:14- which we self-manage.- OK.
0:12:14 > 0:12:17We've had people in there for five years.
0:12:17 > 0:12:19- Yeah, no problems.- Brilliant.
0:12:19 > 0:12:22After this one, going to expand the portfolio?
0:12:22 > 0:12:25Yes. Once this one is done and rented,
0:12:25 > 0:12:27want to buy another one this year
0:12:27 > 0:12:30- and then buy one every year for the next four years.- Oh, right?
0:12:30 > 0:12:32So, then I can retire and that'll be my pension.
0:12:32 > 0:12:34Great.
0:12:34 > 0:12:35Congratulations. Good luck with it.
0:12:35 > 0:12:38Look forward to seeing how you get on.
0:12:38 > 0:12:41I think Dave has got himself a really good property here.
0:12:41 > 0:12:44And when you look at those numbers, you can't really argue with it,
0:12:44 > 0:12:46can you? In terms of the bathroom, yes,
0:12:46 > 0:12:50get rid of that window and pretty much everything else,
0:12:50 > 0:12:51just a simple refurb.
0:12:51 > 0:12:54How will he get on with it? You can find out later in the show.
0:12:59 > 0:13:02Today I'm right in the middle of England, in Ripley,
0:13:02 > 0:13:05halfway between Derby and Nottingham.
0:13:06 > 0:13:11Just 15 minutes from the M1 and half an hour from the Peak District.
0:13:11 > 0:13:14Ripley is also the birthplace of Sir Barnes Wallis,
0:13:14 > 0:13:15inventor of the bouncing bomb.
0:13:20 > 0:13:23I'm just a few minutes' walk from Ripley town centre.
0:13:23 > 0:13:28The property I'm here to see has a guide price of £38,000 plus.
0:13:28 > 0:13:31Actually, I should say two properties,
0:13:31 > 0:13:34because this lot is made up of two one-bedroom flats.
0:13:34 > 0:13:35One up, and one down.
0:13:35 > 0:13:38I'm guessing this is the ground-floor flat.
0:13:38 > 0:13:40Let's have a look.
0:13:42 > 0:13:45So, yes, this is our ground-floor flat.
0:13:45 > 0:13:48Overwhelming smell of damp, amongst other things.
0:13:50 > 0:13:52OK. There's a lot of work to be done here.
0:13:52 > 0:13:54It feels very run down.
0:13:54 > 0:13:58You get the sense that everything... needs ripped out.
0:13:58 > 0:14:00But that's typical of many auction properties
0:14:00 > 0:14:02and some people like the challenge,
0:14:02 > 0:14:03to have a shell of a place
0:14:03 > 0:14:06and really put their own mark on it.
0:14:06 > 0:14:08And add value, ultimately.
0:14:08 > 0:14:12Through to the corridor, I can see the kitchen is very dark.
0:14:12 > 0:14:13It's actually boarded up.
0:14:13 > 0:14:15Not inviting at all.
0:14:15 > 0:14:17Again, needs to be ripped out, replaced.
0:14:17 > 0:14:20And you have a bathroom off your kitchen.
0:14:20 > 0:14:23So, not an ideal layout there.
0:14:23 > 0:14:25Through to...
0:14:25 > 0:14:30a bedroom. So many issues - damp, mould.
0:14:30 > 0:14:33Let me tell you what is interesting about this property.
0:14:33 > 0:14:36Although it is two separate flats,
0:14:36 > 0:14:39planning permission was never granted for it to be that way.
0:14:39 > 0:14:43So it's actually still considered to be one dwelling home.
0:14:43 > 0:14:46So, if you did want to keep it as two flats,
0:14:46 > 0:14:49you're in the funny position where you'd have to apply for
0:14:49 > 0:14:53planning permission to do so, even though that's the way it already is.
0:14:53 > 0:14:56# That's just the way it is, baby. #
0:14:56 > 0:14:59And, then again, maybe not.
0:14:59 > 0:15:01If it doesn't have planning permission,
0:15:01 > 0:15:04a lot depends on how long it has been two flats because,
0:15:04 > 0:15:07if the local authority hasn't taken enforcement action
0:15:07 > 0:15:10within a specified period of time,
0:15:10 > 0:15:12you might be OK to keep it as it is.
0:15:12 > 0:15:15But do always seek legal advice.
0:15:17 > 0:15:20Upstairs, immediate thought is it's very small.
0:15:20 > 0:15:22I was expecting something more.
0:15:22 > 0:15:24There,
0:15:24 > 0:15:27probably your bedroom and, essentially, in a cupboard
0:15:27 > 0:15:29you've got a shower, just by itself.
0:15:29 > 0:15:32And you've got a toilet and sink in here.
0:15:33 > 0:15:35Not a great layout. The smell of damp,
0:15:35 > 0:15:39you'll have to take my word for it, is pretty overwhelming.
0:15:39 > 0:15:41Everything just needs ripped out and taken down.
0:15:41 > 0:15:43It's coming off anyway.
0:15:43 > 0:15:46Into the living area.
0:15:46 > 0:15:48You've got a kitchen and there is some storage heaters which you would
0:15:48 > 0:15:50definitely want to upgrade.
0:15:51 > 0:15:54Essentially, this is a flat that is two rooms.
0:15:54 > 0:15:56Just two rooms. So, it is a small flat.
0:15:56 > 0:15:58Not only that, it's very impractical.
0:15:58 > 0:16:01It doesn't feel like a flat.
0:16:01 > 0:16:05But, perhaps it could be a house.
0:16:05 > 0:16:07Put the two together, you've got a house.
0:16:07 > 0:16:09That's what I'm thinking.
0:16:09 > 0:16:11Well, that's what I'M thinking.
0:16:11 > 0:16:14But would a local property expert think along the same lines?
0:16:14 > 0:16:17Guess what. We called in a local estate agent.
0:16:18 > 0:16:20It's got low ceilings.
0:16:20 > 0:16:24It could be quite quirky if it was renovated in the right way.
0:16:24 > 0:16:27With a kind of cottage-style kitchen.
0:16:27 > 0:16:29Get the bathroom back upstairs.
0:16:29 > 0:16:31What we have to bear in mind, there's no garden with this.
0:16:31 > 0:16:35So, will that be the right option to go down?
0:16:35 > 0:16:37Or is there a marketplace out there for somebody,
0:16:37 > 0:16:40like an elderly couple who don't want the garden,
0:16:40 > 0:16:42won't need the parking?
0:16:42 > 0:16:45but we do have to bear in mind the stairs.
0:16:45 > 0:16:47OK. What if you wanted to keep it as flats
0:16:47 > 0:16:50and make them planning compliant? What would you need to do?
0:16:50 > 0:16:52Various things to bear in mind.
0:16:52 > 0:16:53There's the regulations, for one.
0:16:53 > 0:16:56We've got to have fire doors, fire exits, etc.
0:16:56 > 0:16:57That does become a costly job.
0:16:57 > 0:16:59Two bathrooms, two kitchens.
0:16:59 > 0:17:03So, there is more cost involved with that.
0:17:03 > 0:17:05For me, estimation wise, two flats,
0:17:05 > 0:17:08looking at spending 20-25,000 on this.
0:17:08 > 0:17:11Whereas, with a residential, turning it back into a cottage,
0:17:11 > 0:17:14probably looking at 15-18,000 on that.
0:17:14 > 0:17:18So, even without the cost and delays of plans and planning permission,
0:17:18 > 0:17:21keeping it as two flats would be more expensive
0:17:21 > 0:17:23than restoring to one dwelling.
0:17:23 > 0:17:25What about the rental income?
0:17:25 > 0:17:28Two-bedroom cottages in Ripley, in this location,
0:17:28 > 0:17:32tend to achieve around the £450 per calendar month.
0:17:32 > 0:17:34And for a one-bedroom flat?
0:17:34 > 0:17:38You're going to be looking at £325 per calendar month.
0:17:38 > 0:17:40So, two flats when on the rental stakes,
0:17:40 > 0:17:42but when it comes to selling,
0:17:42 > 0:17:45the agent explained that due to flying freehold issues,
0:17:45 > 0:17:49it would be impossible to sell the flats individually.
0:17:49 > 0:17:52The flats would have to be sold to a property investor
0:17:52 > 0:17:56as a going concern. So, what about the sales values?
0:17:56 > 0:17:57Starting with the cottage option,
0:17:57 > 0:18:01considering the guide price at £38,000 plus.
0:18:01 > 0:18:05Going to be looking at somewhere around about
0:18:05 > 0:18:08£75,000 - £80,000 in the Ripley area.
0:18:08 > 0:18:12If you were to turn this property into two one-bedroom apartments,
0:18:12 > 0:18:13given the yield that it returns,
0:18:13 > 0:18:18that two would fall in the same bracket of around 75-£80,000.
0:18:18 > 0:18:21So, costing of conversion, I think,
0:18:21 > 0:18:24is what is going to be important in this property.
0:18:24 > 0:18:26Well, if it was up to me, it would be one house.
0:18:26 > 0:18:28But it's not my decision.
0:18:28 > 0:18:32Let's find out who WILL decide, as we go to auction.
0:18:32 > 0:18:33So, start me on that.
0:18:33 > 0:18:36Where would you like to be on it? Can I say 45,000 on it?
0:18:36 > 0:18:3840,000? 38?
0:18:38 > 0:18:39Don't mind where we begin.
0:18:39 > 0:18:4136, will you? 36 I've got here.
0:18:41 > 0:18:44Thank you. At £36,000, the opening bid.
0:18:44 > 0:18:4637 is bid.
0:18:46 > 0:18:47At 37?
0:18:47 > 0:18:4938?
0:18:49 > 0:18:5039.
0:18:50 > 0:18:56With the guide price exceeded, we rejoin the bidding at £47,000.
0:18:56 > 0:18:58That's 47.5.
0:18:58 > 0:19:0047 and a half.
0:19:00 > 0:19:0148. At 48,000.
0:19:03 > 0:19:0848.5. 48.5. 49, sir? 49.
0:19:09 > 0:19:11At 49. Can I tempt you again?
0:19:11 > 0:19:13Are you sure?
0:19:13 > 0:19:15At £49,000, he's playing with you.
0:19:15 > 0:19:20At 49,000, once, twice, third chance.
0:19:20 > 0:19:21And a half.
0:19:21 > 0:19:2349 and a half.
0:19:23 > 0:19:25At £49,500.
0:19:25 > 0:19:27Any higher bidding? If not, we're selling it.
0:19:28 > 0:19:30Sold at 49 and a half at the back.
0:19:30 > 0:19:32Thank you.
0:19:32 > 0:19:34The successful bid came from decorator Gary.
0:19:34 > 0:19:38He already has two rentals and a freehold in Central Derby,
0:19:38 > 0:19:44where he lives. We met up at his latest £49,500 purchase,
0:19:44 > 0:19:46the first one he has bought at auction.
0:19:46 > 0:19:48Gary, congratulations.
0:19:48 > 0:19:52- Thank you very much.- This is your first successful auction property.
0:19:52 > 0:19:54Had you been to see it?
0:19:54 > 0:19:57Yes. Visited the property twice.
0:19:57 > 0:19:58Not internally.
0:19:59 > 0:20:03On the outside. Peeked through the windows, round the back.
0:20:03 > 0:20:06Dare I say, Gary, there's a lot to see inside.
0:20:06 > 0:20:08Be honest with me, when you came in did your heart sink
0:20:08 > 0:20:11because you thought, "There's a lot to be done"?
0:20:11 > 0:20:13A little bit, yes.
0:20:13 > 0:20:16I can see past that, though.
0:20:16 > 0:20:18The finished touch, cosmetics.
0:20:18 > 0:20:21I bought it as a blank canvas, really.
0:20:21 > 0:20:24o knock it about, rip it up and start afresh.
0:20:24 > 0:20:25OK. Read the legal pack?
0:20:28 > 0:20:29No.
0:20:29 > 0:20:31Gary, Gary.
0:20:31 > 0:20:33Gary, Gary, indeed.
0:20:33 > 0:20:35The golden rule of buying at auction -
0:20:35 > 0:20:37always read the legal pack.
0:20:37 > 0:20:40And does peeking in the window really count as viewing a property?
0:20:40 > 0:20:42I'm not so sure.
0:20:42 > 0:20:44Let's talk about what IS OK...
0:20:44 > 0:20:46- ..in the property.- Not a lot.
0:20:47 > 0:20:50I think the electrics want replacing.
0:20:50 > 0:20:51Roof looks OK.
0:20:51 > 0:20:54Wants a bit of work. So, I'll start from the top.
0:20:54 > 0:20:57Get the property watertight.
0:20:57 > 0:20:59Windows, get it secure.
0:20:59 > 0:21:01And then just start ripping out.
0:21:01 > 0:21:03What's your plan for the place?
0:21:03 > 0:21:04I'm going to get some legal advice
0:21:04 > 0:21:08but I think I want to put it back to a terrace. Two-bed terraced house.
0:21:08 > 0:21:10And do away with the two flats.
0:21:10 > 0:21:13Get rid of the rear entrance at the back.
0:21:14 > 0:21:16Put an internal staircase back up.
0:21:16 > 0:21:19Do you think that would be more sought-after,
0:21:19 > 0:21:21having a house here,
0:21:21 > 0:21:23rather than having two flats?
0:21:24 > 0:21:25Possibly not...
0:21:26 > 0:21:28..but that's my plans for it.
0:21:28 > 0:21:31I think it'd be an easier project for me.
0:21:31 > 0:21:33Instead of two kitchens, two bathrooms,
0:21:33 > 0:21:36there will be one of everything, so...
0:21:36 > 0:21:39I'm glad we're agreeing on this.
0:21:39 > 0:21:42And it seems that Gary has the same misgivings as me about upstairs.
0:21:44 > 0:21:46The upstairs is substantially smaller.
0:21:46 > 0:21:50Ten square metres smaller than the downstairs.
0:21:50 > 0:21:54I don't see that you could rent the two flats out on equal proportions.
0:21:54 > 0:21:58- Equal price.- And do you plan to rent out or sell on?
0:21:58 > 0:22:00I plan to sell this one on.
0:22:00 > 0:22:02I don't plan to keep it.
0:22:02 > 0:22:03With 25 years' experience
0:22:03 > 0:22:07refurbishing his own and clients' property,
0:22:07 > 0:22:09Gary can turn his hand to most things.
0:22:09 > 0:22:12Tiling, joinery, and of course decorating.
0:22:12 > 0:22:15He is planning to get a Gas Safe engineer and electrician
0:22:15 > 0:22:18for all the legally sensitive work.
0:22:18 > 0:22:21But my main concern for the property, I think,
0:22:21 > 0:22:23also needs a professional approach.
0:22:26 > 0:22:28Have you looked into how substantial the damp problem is?
0:22:28 > 0:22:30I have had a look around.
0:22:30 > 0:22:33The front of the building has been damp-proofed.
0:22:33 > 0:22:37But walking down the side of the building, the access to the rear,
0:22:37 > 0:22:39I noticed that all the pathways
0:22:39 > 0:22:42are substantially higher than the internal floors.
0:22:42 > 0:22:46So I'm hoping that by lowering the pathway will start to alleviate
0:22:46 > 0:22:50- some of the damp.- Considering just about everything needs done,
0:22:50 > 0:22:52you've got a really calm approach.
0:22:52 > 0:22:55You seem pretty calm.
0:22:55 > 0:22:59- Why?- There's a lot of hard work, I'm not doubting that.
0:22:59 > 0:23:02But there's nothing that fazes me, to be fair.
0:23:02 > 0:23:03Timescale?
0:23:04 > 0:23:07That's a good one. I'd like to think
0:23:07 > 0:23:11that it'll be done within six months.
0:23:11 > 0:23:13Bit of a winter project.
0:23:13 > 0:23:16Having said that, I have just taken quite a large job on.
0:23:16 > 0:23:19So, it may take longer than six months
0:23:19 > 0:23:23but it's just going to be weekend nights - drop-in job.
0:23:23 > 0:23:25On the plus side, if there is so much to be done
0:23:25 > 0:23:28and you do have this almost blank canvas,
0:23:28 > 0:23:31because you have a shell, you're going to add so much value.
0:23:31 > 0:23:34Well, that's what I'd like to think. I've done a bit of homework.
0:23:34 > 0:23:38You know, with the monies that I'm going to spend on it,
0:23:38 > 0:23:41I do believe that there is a reasonable profit margin in it
0:23:41 > 0:23:45once it is completed and I do believe there is a market
0:23:45 > 0:23:48for this style of property and this value of property.
0:23:48 > 0:23:49- So...- What's your budget?
0:23:49 > 0:23:5310,000, I think, would quite nicely turn it back into a good standard.
0:23:53 > 0:23:55And a nice finished house.
0:23:57 > 0:23:5810,000 seems quite low.
0:23:58 > 0:24:01Just in that there is much to be done.
0:24:01 > 0:24:02You're changing everything
0:24:02 > 0:24:04and you're changing it from two flats to a house.
0:24:04 > 0:24:07You're changing the stairs, you're knocking down the walls,
0:24:07 > 0:24:10you're changing the ceilings. There's a lot of damp issues.
0:24:10 > 0:24:13Why do you think you can do it in 10,000?
0:24:13 > 0:24:16Because I can do so much myself.
0:24:16 > 0:24:19And your labour is where a lot of your money goes on renovating.
0:24:20 > 0:24:23I've lent a hand in many cases myself.
0:24:23 > 0:24:26So it's about time I knocked on a few doors and said,
0:24:26 > 0:24:28"Come and give me a hand."
0:24:28 > 0:24:30Gary, can't wait to see what you do with the place.
0:24:30 > 0:24:32Best of luck, and congratulations again.
0:24:32 > 0:24:33Thank you very much. Thank you.
0:24:33 > 0:24:36It's great that Gary's a decorator by trade,
0:24:36 > 0:24:39but there's so much that needs to be done before you even think about
0:24:39 > 0:24:40opening a can of paint.
0:24:40 > 0:24:44I know I might have given him a hard time about that £10,000 budget,
0:24:44 > 0:24:48but when everything needs done, will that really cut it?
0:24:48 > 0:24:49You can find out later in the show.
0:24:51 > 0:24:54Still to come... You'd struggle to hit the ground running
0:24:54 > 0:24:56at this mid-terrace house in Porth.
0:24:56 > 0:25:00There's no floor, you can see there's rot on the joists.
0:25:03 > 0:25:07But Gary's daughter, Chloe, has been lending a hand in Derbyshire.
0:25:07 > 0:25:10It took me longer to correct her work than it did for her to do it.
0:25:14 > 0:25:16We're heading back to Wallasey, on Merseyside,
0:25:16 > 0:25:20where I saw a three-bedroom house that seemed like a good buy.
0:25:20 > 0:25:23As a former housing association property,
0:25:23 > 0:25:25it had been kept in good nick,
0:25:25 > 0:25:29but upstairs there was one thing I'd definitely get rid of.
0:25:29 > 0:25:32Now, that is a bit weird.
0:25:32 > 0:25:34Yes, it's an internal window.
0:25:34 > 0:25:37Now, in principle, I can see what they're doing with that -
0:25:37 > 0:25:40it lets a lot of natural light into this internal room.
0:25:40 > 0:25:41On the other hand, can you imagine
0:25:41 > 0:25:44getting up in the middle of the night and having a wee,
0:25:44 > 0:25:46the lights would go on and the person in there would be disturbed.
0:25:46 > 0:25:49There's just something a little bit not quite right about it,
0:25:49 > 0:25:51so I think probably block it up, on balance.
0:25:51 > 0:25:56# Private eyes They're watching you
0:25:56 > 0:26:00# They see your every move... #
0:26:00 > 0:26:02It was Dave who had eyes on it
0:26:02 > 0:26:06and purchased the property for £50,000.
0:26:06 > 0:26:08He was planning on renting it out
0:26:08 > 0:26:10after renovations which included a new kitchen
0:26:10 > 0:26:14and blocking up that window between the bedroom and bathroom.
0:26:14 > 0:26:17As a refrigeration and air conditioning engineer,
0:26:17 > 0:26:19he'd be able to keep a cool head
0:26:19 > 0:26:22and give this property a breath of fresh air,
0:26:22 > 0:26:24pretty much all by himself.
0:26:24 > 0:26:25Are you handy?
0:26:25 > 0:26:31Very handy. Yeah, any mechanical services I can generally do myself.
0:26:31 > 0:26:33Most other bits, no problem.
0:26:34 > 0:26:36Dave was armed with a budget of £5,000
0:26:36 > 0:26:39and hoped to get the work done in four to six weeks.
0:26:41 > 0:26:44But we're returning seven months later to see how things have gone.
0:26:59 > 0:27:02So far, it's looking good down here,
0:27:02 > 0:27:03but I'm really keen to head upstairs
0:27:03 > 0:27:07and see what's happened to that internal window.
0:27:07 > 0:27:10JLS: # Cos what nobody sees
0:27:10 > 0:27:12# They've no reason to believe
0:27:12 > 0:27:15# Girl, it should stay between you and me
0:27:15 > 0:27:16# We should keep it private
0:27:16 > 0:27:18# Nobody's got to know
0:27:18 > 0:27:21# Keep this thing on the low
0:27:21 > 0:27:23# Don't need nobody else
0:27:23 > 0:27:25# Just you and me invited
0:27:25 > 0:27:27# No need to shout it out
0:27:27 > 0:27:29# It's not what it's about
0:27:29 > 0:27:31# If you can keep a secret
0:27:31 > 0:27:35# We can make it private, private, private
0:27:35 > 0:27:40# Let's keep it private, private, private... #
0:27:42 > 0:27:44Now, that's a big improvement.
0:27:45 > 0:27:47Down the hall, the other two bedrooms
0:27:47 > 0:27:48have been freshened up as well.
0:27:53 > 0:27:55Air conditioning engineer Dave
0:27:55 > 0:27:58has indeed made this whole house fresh and airy.
0:27:58 > 0:28:01Being an engineer and self-confessed handyman,
0:28:01 > 0:28:06he's done most of the work himself, but got in the trades when required.
0:28:06 > 0:28:08But he's had to do the renovations
0:28:08 > 0:28:11at the weekends, and considering he's got to travel up
0:28:11 > 0:28:14from working in London, well, I'm not surprised
0:28:14 > 0:28:18it's taken longer than his initial four- to six-week timescale.
0:28:18 > 0:28:22However, seven months does seem like quite a long time indeed,
0:28:22 > 0:28:24so what's happened?
0:28:25 > 0:28:27Well, the delay was partly my fault.
0:28:27 > 0:28:29I should have read the legal pack,
0:28:29 > 0:28:32because it did actually say in there that it would be 28 days
0:28:32 > 0:28:35or whenever the Housing Association had their paperwork ready.
0:28:35 > 0:28:38Unfortunately, that took nearly three months from auction
0:28:38 > 0:28:40to me getting the keys to the house.
0:28:40 > 0:28:44Ah, yes, a three-month delay in actually purchasing the property
0:28:44 > 0:28:46will throw a spanner into any timescale.
0:28:47 > 0:28:51Dave stuck to his plan and didn't tackle any major structural changes
0:28:51 > 0:28:54as he wants it for rental purposes
0:28:54 > 0:28:57and it makes sense to keep his costs down.
0:28:57 > 0:29:00Originally, he wanted to spend no more than £5,000,
0:29:00 > 0:29:02so has he managed it?
0:29:04 > 0:29:06I've gone over budget on the property,
0:29:06 > 0:29:07I've spent roughly 8,000.
0:29:07 > 0:29:12That's down to including the legal costs, the carpets, the blinds.
0:29:12 > 0:29:15So you know, all in all, I'm happy with what I've spent, anyway.
0:29:16 > 0:29:20So he's happy with his spend and I think he deserves to feel
0:29:20 > 0:29:23pretty chuffed with the standard of finish he's achieved here.
0:29:24 > 0:29:27The most pleasing thing that we've done to the house, I would say,
0:29:27 > 0:29:30would be the kitchen and the bathroom because they were both in
0:29:30 > 0:29:33a pretty poor state, and now they look really good.
0:29:34 > 0:29:36I'm impressed. And Dave is happy as well.
0:29:36 > 0:29:38But will the professionals be as pleased with
0:29:38 > 0:29:41the work Dave has put in here?
0:29:41 > 0:29:44We asked two local estate agents for their opinions, so first,
0:29:44 > 0:29:47let's hear from the agent who saw it last time.
0:29:48 > 0:29:51I think the changes definitely work. He's put a brand-new kitchen in.
0:29:51 > 0:29:54He's changed the bathroom around. I do like the bathroom.
0:29:54 > 0:29:56And he's painted it right through.
0:29:56 > 0:29:59New carpeting. So, it is ready for someone just to move straight into.
0:29:59 > 0:30:00My first impressions of the property
0:30:00 > 0:30:02are that he's done a really nice job.
0:30:02 > 0:30:05He's obviously spent a lot of time and effort and money in getting it
0:30:05 > 0:30:07to look like this. Throughout, it's immaculate,
0:30:07 > 0:30:11and the kitchens and bathrooms are of a particularly high standard.
0:30:11 > 0:30:14That sounds like two impressed agents to me.
0:30:14 > 0:30:16And as Dave is finally able to rent out this property
0:30:16 > 0:30:20seven months after the auction, what is the demand like in the area now?
0:30:22 > 0:30:24In this area, there is a high demand for properties like this.
0:30:24 > 0:30:27A lot do get sold to investors looking to rent out.
0:30:27 > 0:30:30But there's a high demand for that because they like properties now
0:30:30 > 0:30:32that are quite easy to turn around.
0:30:32 > 0:30:34With this one, with it being presented so nicely,
0:30:34 > 0:30:35it would rent out straightaway,
0:30:35 > 0:30:38so there would be a good demand for investors to purchase this.
0:30:38 > 0:30:40With the agents being impressed by
0:30:40 > 0:30:42its ready-to-sell standard of finish,
0:30:42 > 0:30:44I guess it wouldn't hurt to find out
0:30:44 > 0:30:48what they think Dave's £58,000 investment is worth now.
0:30:49 > 0:30:52I would say in the sales market, I would advertise this property
0:30:52 > 0:30:54at offers over £70,000.
0:30:54 > 0:30:56OK, if I was to put this property on the open market,
0:30:56 > 0:31:00I would recommend an asking price of offers in the region of £75,000.
0:31:00 > 0:31:03Yeah, I've spent 58,000 on it.
0:31:03 > 0:31:07If it was worth 70, 75, it's a good investment for the future.
0:31:07 > 0:31:09But long-term, I'm keeping it anyway.
0:31:09 > 0:31:13Dave has a long-term plan to add a house to his rental portfolio
0:31:13 > 0:31:16every year for the next four years.
0:31:16 > 0:31:18So it's no surprise that he is not looking for
0:31:18 > 0:31:22that potential 17-grand pre-tax profit.
0:31:22 > 0:31:25So, what sort of rental will this nice house command?
0:31:25 > 0:31:27In the rental market,
0:31:27 > 0:31:30I would advertise this for in the region of £550 per month.
0:31:30 > 0:31:32In the rental market,
0:31:32 > 0:31:36I would recommend a rental income of £550 per calendar month.
0:31:36 > 0:31:38My thoughts on the valuation -
0:31:38 > 0:31:40they are at the top end of what I was hoping for.
0:31:40 > 0:31:43So yeah, I'm obviously really pleased.
0:31:43 > 0:31:46That's an 11% yield, which isn't bad going at all.
0:31:46 > 0:31:50So, what's next, once this house is rented out?
0:31:50 > 0:31:54I would be looking to buy another property at auction
0:31:54 > 0:31:57and then next year getting married to Jan, and also, of course,
0:31:57 > 0:32:00hoping to watch Liverpool win the Champions League.
0:32:00 > 0:32:03Well, Dave, congratulations on your engagement.
0:32:03 > 0:32:06And best of luck in your future property ventures.
0:32:07 > 0:32:10Maybe we'll see him again down the line,
0:32:10 > 0:32:12although I can't promise that he'll be celebrating
0:32:12 > 0:32:14the Reds lifting some silverware.
0:32:14 > 0:32:16At least two out of three ain't bad, eh, Dave?
0:32:23 > 0:32:28Porth in South Wales is one of many ex-mining towns that are found
0:32:28 > 0:32:30throughout the Welsh valleys.
0:32:30 > 0:32:35The arrival of railway to the area revolutionised the mining industry
0:32:35 > 0:32:39and Porth is lucky enough to retain its railway station today.
0:32:39 > 0:32:42This allows Porth commuters to travel to Cardiff
0:32:42 > 0:32:45through the Rhondda Valley in under 40 minutes.
0:32:46 > 0:32:50I'm just a short ten-minute walk away from Porth train station
0:32:50 > 0:32:54and the property I am here to see is this three-bed mid-terraced house
0:32:54 > 0:32:57with a guide price of £45,000 plus.
0:32:57 > 0:33:01Now, before I go in, I just want to mention this.
0:33:01 > 0:33:04It gives a terraced house a little bit of character.
0:33:04 > 0:33:07I hope the same is to be said on the inside.
0:33:10 > 0:33:11Nice and bright...
0:33:13 > 0:33:15..in this hallway.
0:33:15 > 0:33:19But you've got two lots of textured finishes and I'm not a massive fan
0:33:19 > 0:33:21of textured finishes.
0:33:21 > 0:33:24One on the ceiling and one on the walls.
0:33:24 > 0:33:27Central heating, as well, in the hallway,
0:33:27 > 0:33:30which is good. There are your stairs, off the hallway,
0:33:30 > 0:33:34going into the bedrooms and then you come round the corner
0:33:34 > 0:33:37into this really large living space.
0:33:37 > 0:33:39We've got dual aspect, as well, two big windows.
0:33:39 > 0:33:43You've got a fireplace. Loads of space to play with in here.
0:33:43 > 0:33:48And there doesn't seem to be any problems anywhere at all,
0:33:48 > 0:33:51apart from... Have a look at this.
0:33:51 > 0:33:55Behind the door, you have got signs of damp and moisture.
0:33:55 > 0:34:00You've got - inside - mushrooms growing in the corner.
0:34:00 > 0:34:04MUSIC: Fun Fun Fun by The Beach Boys
0:34:05 > 0:34:09Well, you know me, I'm a fun guy - but seriously,
0:34:09 > 0:34:12there is nothing funny about this fungus garden growing indoors.
0:34:12 > 0:34:15The new owner will want to sort this problem
0:34:15 > 0:34:18before they have a larger group of mushrooms on their hands.
0:34:18 > 0:34:21Bear in mind, apart from potential structural damage,
0:34:21 > 0:34:25some mushrooms release spores which can be harmful to health.
0:34:25 > 0:34:29Now, let's see if there is much room elsewhere!
0:34:29 > 0:34:32Through into the kitchen, then, and it is a good size,
0:34:32 > 0:34:33looks in good condition.
0:34:33 > 0:34:37You'd be able to keep this kitchen, no problem at all.
0:34:37 > 0:34:38And as I look in the oven...
0:34:38 > 0:34:40I can see there's instructions.
0:34:40 > 0:34:43So this looks like it hasn't been used.
0:34:43 > 0:34:47So keep all this, which is a massive saving on the old budget.
0:34:47 > 0:34:52And right at the end, you've got a toilet, a sink and a shower.
0:34:52 > 0:34:56So you've got a downstairs wet room, with toilet as well.
0:34:56 > 0:34:57There's a bit of a crack up here,
0:34:57 > 0:35:00right round the edge of this ceiling.
0:35:00 > 0:35:02And there's a bit of movement as well.
0:35:04 > 0:35:09# And now is the time to explore... #
0:35:09 > 0:35:12Upstairs, to see where this movement is coming from.
0:35:14 > 0:35:15Right then...
0:35:17 > 0:35:21Top of the stairs, look no further, and you can see into the bathroom,
0:35:21 > 0:35:25there is no floor. You can see there's rot on the joists.
0:35:25 > 0:35:29Straight away, they would have to be checked and I'm guessing
0:35:29 > 0:35:32they would have to be changed as well, for the safety aspect.
0:35:32 > 0:35:34But look at the size of the bathroom.
0:35:34 > 0:35:36It's massive. Loads to work with there.
0:35:36 > 0:35:39Anyway, the three bedrooms...
0:35:39 > 0:35:42Bedroom one. Looking on to the back garden.
0:35:42 > 0:35:44Double bedroom. Good size.
0:35:44 > 0:35:45No problems with that at all.
0:35:45 > 0:35:48Across the landing,
0:35:48 > 0:35:50we've got bedroom number two.
0:35:50 > 0:35:54It's a double bedroom, in good condition, and it's a nice size.
0:35:54 > 0:35:58Bedroom number three is a little bit small, more of a box bedroom.
0:35:58 > 0:36:02You could get a single bed in here, could be an office.
0:36:02 > 0:36:04Could be a nursery, whatever you wanted.
0:36:04 > 0:36:06A couple of issues you're going to have to sort out in this place.
0:36:06 > 0:36:08The damp, the moisture.
0:36:09 > 0:36:11And that bathroom.
0:36:11 > 0:36:14Apart from that, I do like this venture.
0:36:15 > 0:36:17So, that's the house inspected.
0:36:17 > 0:36:21But a quick spy through the window in the back bedroom will show that
0:36:21 > 0:36:24this three-bed terrace has something else to offer.
0:36:25 > 0:36:28So, there is a bit of outside space here.
0:36:28 > 0:36:29It is a bit tight.
0:36:29 > 0:36:33But I can see there's more.
0:36:35 > 0:36:37I'm going in. Wish me luck.
0:36:40 > 0:36:43MUSIC: When Your Garden's Overgrown by Paul Weller
0:36:45 > 0:36:50# Did you know your garden's overgrown?
0:36:58 > 0:37:01Wow! This isn't too bad at all.
0:37:01 > 0:37:04You can see that it's completely overgrown,
0:37:04 > 0:37:06but there's a bit of space to work with here.
0:37:06 > 0:37:11Get this all chopped back, you would have a decent-sized back garden.
0:37:11 > 0:37:14Something to work with. I'm surprised and I'm happy.
0:37:15 > 0:37:20This property might have a garden growing both outside and in,
0:37:20 > 0:37:24but whoever buys this property could come up smelling of roses.
0:37:24 > 0:37:26We called along a local estate agent
0:37:26 > 0:37:29to see if he thinks there are any problems to weed out
0:37:29 > 0:37:34with this three-bed terrace, guided at 45 grand plus.
0:37:34 > 0:37:37This property is more or less done upstairs, doesn't need much at all,
0:37:37 > 0:37:40apart from a good looking-at in the bathroom.
0:37:40 > 0:37:43Looks like there's either wet or dry rot in that bathroom.
0:37:43 > 0:37:45But apart from that, it's partially glazed, most things are done.
0:37:45 > 0:37:47The decor is excellent.
0:37:47 > 0:37:49It's ready to go.
0:37:49 > 0:37:51I totally agree.
0:37:51 > 0:37:53This place seems like a good buy.
0:37:53 > 0:37:55Would he change anything?
0:37:55 > 0:37:58Many people take the bathroom downstairs to upstairs.
0:37:58 > 0:37:59That's already been done.
0:37:59 > 0:38:02And the only thing I would do is put some nice carpets in here.
0:38:02 > 0:38:04It should be really good.
0:38:04 > 0:38:06Looks like he and I have the same idea.
0:38:06 > 0:38:08Keep the layout as is.
0:38:08 > 0:38:11Once the rot has been cleared and the home has been tidied up,
0:38:11 > 0:38:14how much does he think the property could make if resold?
0:38:15 > 0:38:18If this property is renovated to a sale standard,
0:38:18 > 0:38:21you could easily achieve 80- £85,000.
0:38:22 > 0:38:24I don't think there's an awful lot wrong with this place.
0:38:24 > 0:38:28Obviously you've got to get to the bottom of the bathroom joist issue
0:38:28 > 0:38:31and that damp. But downstairs, I think you've got a good layout,
0:38:31 > 0:38:35loads of space. Three good-sized bedrooms.
0:38:35 > 0:38:37Toilet downstairs, big bathroom upstairs.
0:38:37 > 0:38:39What is not to love?
0:38:39 > 0:38:43Let's see who liked it or loved it when it went under the hammer.
0:38:43 > 0:38:45A mid-terraced house.
0:38:45 > 0:38:47Guided at 45.
0:38:47 > 0:38:49Will you start me at £40,000, somebody?
0:38:49 > 0:38:5140, can we see? Thank you.
0:38:51 > 0:38:53Right at the back at 40. 41 here.
0:38:53 > 0:38:5742. 42. 43. 44? 45.
0:38:57 > 0:39:0146. 47. 48. 48?
0:39:01 > 0:39:0748. 49. 50. 50. 51. 52.
0:39:07 > 0:39:10The bidding got off to a flying start but as it started to slow,
0:39:10 > 0:39:15a last-minute bid of 57 grand came in to try and clinch the deal.
0:39:15 > 0:39:1657, new bidder.
0:39:16 > 0:39:1857. 57 and a half?
0:39:18 > 0:39:19No. 57.
0:39:19 > 0:39:22He's come in with a late cheeky bid at 57,000.
0:39:22 > 0:39:24Is he going to get it? For the first time...
0:39:24 > 0:39:27Second time... Third and last time...
0:39:27 > 0:39:30..57,500. 58. 58.
0:39:30 > 0:39:32And a half. No. At £58,000.
0:39:32 > 0:39:34For the first time...
0:39:34 > 0:39:36Second time... Third and last time.
0:39:36 > 0:39:38£58,000.
0:39:38 > 0:39:39Sold. Thank you.
0:39:39 > 0:39:42Number 31.
0:39:42 > 0:39:46Jumping in with that final bid of 58 grand was Michael,
0:39:46 > 0:39:49who bought it with his dad Dan and sister Joanna.
0:39:49 > 0:39:54Dan originally hails from the East African country of Mauritius.
0:39:54 > 0:39:57Just because he's swapped sea and sand for sandstone,
0:39:57 > 0:40:01doesn't mean we can't add a bit of sunshine to this three-bed terrace.
0:40:01 > 0:40:03Let those trumpets play.
0:40:03 > 0:40:05TRUMPET MUSIC
0:40:05 > 0:40:07- Michael, nice to meet you. - Nice to meet you.
0:40:07 > 0:40:08- And you, Dan.- Nice to meet you.
0:40:08 > 0:40:11- Nice to meet you both.- Yes. - Before we get to the house,
0:40:11 > 0:40:16tell us a bit about how this collaboration came together.
0:40:16 > 0:40:19Well, I mean, money is not doing anything sat in the bank,
0:40:19 > 0:40:21so we thought we might as well invest in property.
0:40:21 > 0:40:24Any experience in property developing at all?
0:40:24 > 0:40:26- No.- No.- First time.
0:40:26 > 0:40:28OK, then. So this is a scratch.
0:40:28 > 0:40:30- Yes.- Yeah, yeah. - Starting from scratch.
0:40:30 > 0:40:33So who, then... Who found this place, then?
0:40:33 > 0:40:34I was looking around, around about online
0:40:34 > 0:40:37and we get a catalogue from the auction house
0:40:37 > 0:40:40and then, yeah, we just thought we would check it out.
0:40:41 > 0:40:43Well, if they've checked it out,
0:40:43 > 0:40:46they'll no doubt know about the rot upstairs.
0:40:46 > 0:40:50We could see it was possible problem with the bathroom, but we knew that.
0:40:50 > 0:40:52We could see something had been covered up.
0:40:52 > 0:40:55Apart from that, everything seems pretty hunky-dory.
0:40:55 > 0:40:57You know. Just a quick refurb.
0:40:57 > 0:41:00Tell us in a bit more detail, the problems you've got in the bathroom.
0:41:00 > 0:41:03Well, we knew there was going to be a problem, when we had a look,
0:41:03 > 0:41:05when we came round for the viewing. So yeah,
0:41:05 > 0:41:07we knew there would be something under there
0:41:07 > 0:41:11that we needed to sort out, and all the joists need replacing.
0:41:11 > 0:41:12The floor needs replacing.
0:41:12 > 0:41:15So subsequently, the roof in the kitchen,
0:41:15 > 0:41:18the ceiling in the kitchen, sorry, needs replacing as well.
0:41:18 > 0:41:23So yeah, apart from that, I mean, that's the only snag that I can see.
0:41:23 > 0:41:26But the builder said it's not going to be a problem.
0:41:26 > 0:41:31OK, as we know, this house isn't bad at all, but Dan and Michael aren't
0:41:31 > 0:41:35stopping there. They have plans to remove the wall between the kitchen
0:41:35 > 0:41:37and downstairs shower room.
0:41:37 > 0:41:40Are you making the kitchen bigger or are you making a better bathroom?
0:41:40 > 0:41:43- No, we are making the kitchen bigger.- Kitchen.
0:41:43 > 0:41:45- No toilet downstairs? - No toilet downstairs.
0:41:45 > 0:41:47- Wow!- We've got the toilet upstairs.
0:41:47 > 0:41:50We are hoping to bash this through here, open some French doors out
0:41:50 > 0:41:53and also at the back, make the kitchen larger,
0:41:53 > 0:41:55so...
0:41:55 > 0:41:58You've not even stood still, have you?
0:41:58 > 0:41:59- The window is going?- Yeah.
0:41:59 > 0:42:01The doors, just here, the windows are going,
0:42:01 > 0:42:03- the doors are going in. - Yeah, French doors.
0:42:03 > 0:42:05Tell us what else you are going to do to this place.
0:42:05 > 0:42:08Just, you know, spruce up, new kitchen, new bathroom,
0:42:08 > 0:42:10spruce it up and you know, new carpets, obviously.
0:42:10 > 0:42:13Yeah, just make it look as if it's presentable
0:42:13 > 0:42:15and hopefully sell it on.
0:42:15 > 0:42:20OK, the guys, in my opinion, are doing a lot of unnecessary work.
0:42:20 > 0:42:24They have a timescale of four months but time is money.
0:42:24 > 0:42:27So maybe doing less would be better.
0:42:27 > 0:42:29They have a budget of 15 grand
0:42:29 > 0:42:33but all these extras could soon eat that up.
0:42:33 > 0:42:36And of course, there's the moisture problem and a growing problem
0:42:36 > 0:42:37in the living room.
0:42:37 > 0:42:40What are you going to do with the mushrooms?
0:42:40 > 0:42:42- Sell them down the market! - LAUGHTER
0:42:42 > 0:42:46I don't think you get much for them kind, to be fair.
0:42:46 > 0:42:48Cook it, man. Cook it.
0:42:48 > 0:42:51Exactly, yes. You would, back home in Mauritius, wouldn't you?
0:42:51 > 0:42:52Get it on the frying pan.
0:42:52 > 0:42:56Salt and pepper. The guys are obviously kidding around.
0:42:56 > 0:42:58Major warning alert.
0:42:58 > 0:43:01Do not eat mushrooms like these.
0:43:01 > 0:43:02Certain moulds can be toxic
0:43:02 > 0:43:06and even their spores can trigger asthma attacks.
0:43:06 > 0:43:09I'm hoping these two won't be out of the frying pan into the fire
0:43:09 > 0:43:11with their ambitious to-do list.
0:43:11 > 0:43:14Listen, I wish you both really well.
0:43:14 > 0:43:16I hope this first project goes good for you.
0:43:16 > 0:43:17OK, good luck to you, Michael.
0:43:17 > 0:43:20- Cheers.- Take it easy.- Thank you very much.- Take care, Dan.
0:43:20 > 0:43:23I don't think the lads have done too bad for their first project.
0:43:23 > 0:43:26They have got that issue of the rot in the joists in the bathroom,
0:43:26 > 0:43:29which has led to the kitchen ceiling falling slightly.
0:43:29 > 0:43:32But I think everything else in this house seems to be OK,
0:43:32 > 0:43:35apart from the indoor mushrooms, of course.
0:43:35 > 0:43:38I'm not quite sure what to expect of this venture.
0:43:38 > 0:43:41You can find out, and I can find out, later in the programme.
0:43:45 > 0:43:49Well, there's still two more properties to come but I wonder if
0:43:49 > 0:43:52there's any advice we can give from what we've learnt so far.
0:43:52 > 0:43:55Well, maybe it's that every project has its ups and downs,
0:43:55 > 0:43:57but no matter what, keep calm and carry on.
0:43:57 > 0:43:59Yes, correct, that's good advice, Martel.
0:43:59 > 0:44:02Let's see if that was the case with the two remaining properties.
0:44:02 > 0:44:03MUSIC: Hung Up by Madonna
0:44:03 > 0:44:05# Time goes by so slowly... #
0:44:05 > 0:44:09Time to go back to Ripley, Derbyshire, where earlier,
0:44:09 > 0:44:12I saw two one-bed flats within this former end-of-terrace.
0:44:13 > 0:44:18The flat upstairs was accessed from what had once been the back door.
0:44:19 > 0:44:22Essentially, this is a flat that is two rooms.
0:44:22 > 0:44:24Just two rooms. So it is a small flat.
0:44:24 > 0:44:26Not only that, it is very impractical.
0:44:26 > 0:44:29It just doesn't feel like a flat.
0:44:31 > 0:44:34The downstairs flat, although larger in area,
0:44:34 > 0:44:38wasn't very inviting either, with dark and damp rooms.
0:44:38 > 0:44:40The man taking on the task of refurbishment,
0:44:40 > 0:44:44having paid 49 and a half grand for the privilege, was Gary,
0:44:44 > 0:44:46a painter and decorator by trade,
0:44:46 > 0:44:50who also has experience with refurbishing for clients.
0:44:51 > 0:44:55I've bought it as a blank canvas really, to knock it about,
0:44:55 > 0:44:57rip it out and start afresh.
0:44:57 > 0:44:59What's your plan for the place?
0:44:59 > 0:45:00I'm going to get some legal advice,
0:45:00 > 0:45:02but I think I'm going to put it back
0:45:02 > 0:45:04to a terrace, two-bed terraced house.
0:45:04 > 0:45:07Do you think that would be more sought-after,
0:45:07 > 0:45:10having a house here rather than two flats?
0:45:11 > 0:45:14Possibly not.
0:45:14 > 0:45:16But that's my plans for it.
0:45:16 > 0:45:19I think it'll be an easier project for me instead of two kitchens,
0:45:19 > 0:45:22two bathrooms, there'll be one of everything, so...
0:45:23 > 0:45:28He thought it would take him six months to create one house.
0:45:28 > 0:45:31One year on, he's stripped everything upstairs and down
0:45:31 > 0:45:33back to brick.
0:45:33 > 0:45:36But so far, he's only refurbished the upstairs
0:45:36 > 0:45:38and it's taken him almost a year.
0:45:38 > 0:45:41MUSIC: It's The Same Old Song by The Supremes
0:45:45 > 0:45:47Why the same layout?
0:45:47 > 0:45:49Gary will tell us shortly.
0:45:52 > 0:45:57The changes may be small, but Gary has created a funky flat.
0:45:57 > 0:46:01He's moved the entrance door nearer the top of the stairs, to create
0:46:01 > 0:46:04a longer hall, and the flat has had a full damp course.
0:46:04 > 0:46:09# It used to bring sweet, sweet memories... #
0:46:09 > 0:46:12The not-so-sweet memory was the chimney breast.
0:46:12 > 0:46:16After reinforcing the roof and loft timbers,
0:46:16 > 0:46:18Gary stripped it out and it's now the shower room.
0:46:20 > 0:46:22It's made a bigger shower.
0:46:22 > 0:46:26Bedroom and toilet just the other side of this chorus.
0:46:28 > 0:46:31# It's the same old song
0:46:31 > 0:46:36# With a different meaning since you've been gone... #
0:46:36 > 0:46:40See? Much bigger. The plan was to convert it back to a house.
0:46:40 > 0:46:43So what's happened since we've been gone?
0:46:43 > 0:46:48I contacted the local council, to do with the council tax,
0:46:48 > 0:46:50to put that in my name,
0:46:50 > 0:46:55and it was already registered with them for two addresses,
0:46:55 > 0:46:56so there was no problem there.
0:46:57 > 0:47:03So, Gary changed his plans and after checks found he could legally leave the house as two flats
0:47:03 > 0:47:07because they were two distinct addresses with two postcodes.
0:47:07 > 0:47:11Of course, that didn't guarantee that the previous conversion
0:47:11 > 0:47:14to two flats would have passed building control
0:47:14 > 0:47:16if planning permission had been sought.
0:47:16 > 0:47:19But Gary was doing a full refurb anyway.
0:47:19 > 0:47:24Clarifying the position took time but the major delay came about when
0:47:24 > 0:47:28his neighbours approached him to do their similar scheme of renovation.
0:47:28 > 0:47:32So in actual fact I've done the one next door first.
0:47:32 > 0:47:34That is completed.
0:47:34 > 0:47:39Identical layout to this, which was a lot more work than this.
0:47:39 > 0:47:44And the bottom one next door has also been sort of 50-60% complete.
0:47:44 > 0:47:48I'm happy in the end with the finish and the timescale.
0:47:51 > 0:47:55Gary's budget was ten grand plus a two-grand contingency,
0:47:55 > 0:47:58but he's benefited from the economy of scale
0:47:58 > 0:48:00of doing four flats at once.
0:48:00 > 0:48:02How much has he spent on this project?
0:48:02 > 0:48:06Up to this point, I've spent about seven.
0:48:06 > 0:48:09That has included quite a few materials, which I've purchased
0:48:09 > 0:48:14on a bulk-buy basis, which will cover the lower flat.
0:48:14 > 0:48:19So, I'm well on scale to do the two at the moment for the 10,000,
0:48:19 > 0:48:23with a couple of thousand contingency in place,
0:48:23 > 0:48:26and I feel quite confident that we will come in on budget.
0:48:26 > 0:48:30Gary's plans to call in favours from his mates didn't bear fruit,
0:48:30 > 0:48:32but he did get one volunteer.
0:48:32 > 0:48:36My daughter did come and help one day, to do a bit of painting
0:48:36 > 0:48:39for a few hours.
0:48:39 > 0:48:43It took me longer to correct her work than it did for her to do it.
0:48:43 > 0:48:46But it's not something I would have wanted to tell her and upset her,
0:48:46 > 0:48:49so I was quite happy for the company, more so than anything.
0:48:49 > 0:48:52Oops. Let's hope she's not watching, eh, Gary.
0:48:52 > 0:48:55And it turns out daughter Chloe will have plenty of time
0:48:55 > 0:48:57to look at her dad's corrective paintwork,
0:48:57 > 0:49:01as she is going to be moving in whilst Gary continues working on
0:49:01 > 0:49:03the downstairs flat.
0:49:03 > 0:49:05She'll be living in the upstairs flat,
0:49:05 > 0:49:08so I've always got a door to knock on for a cup of tea.
0:49:10 > 0:49:15Gary bought for 49 and a half grand and projects a total spend of ten.
0:49:15 > 0:49:18We called in two local estate agents to do the maths bit.
0:49:18 > 0:49:22Both agents agreed that for both sales and rentals Gary had maximised
0:49:22 > 0:49:25the value making two dwellings.
0:49:25 > 0:49:27First, the resale values.
0:49:27 > 0:49:30I would expect the top-floor apartment to fetch around £50,000,
0:49:30 > 0:49:32with the ground-floor apartment,
0:49:32 > 0:49:34assuming it's done to the same sort of standard,
0:49:34 > 0:49:38because it's a bit bigger as well, around £55,000.
0:49:38 > 0:49:41The price for resale, I would say, for the ground-floor flat,
0:49:41 > 0:49:46would be £55,000, and for the upper-floor flat here,
0:49:46 > 0:49:47I would say £50,000.
0:49:48 > 0:49:53A £45,500 profit before taxes and expenses.
0:49:53 > 0:49:55Very surprised, but pleasantly surprised.
0:49:55 > 0:49:57I'm very happy with both of those.
0:49:57 > 0:49:59When it came to the rental values,
0:49:59 > 0:50:01the agents again were in total agreement,
0:50:01 > 0:50:05valuing the top-floor flat at £375 per calendar month
0:50:05 > 0:50:11and the larger lower flat at £395 per calendar month.
0:50:11 > 0:50:15Yeah, I'm pleasantly surprised with both of those prices, yeah.
0:50:15 > 0:50:19Gary's total projected spend is £59,500,
0:50:19 > 0:50:23which equates to an annual yield of just over 15.5%.
0:50:23 > 0:50:25We thought it would be rude to ask
0:50:25 > 0:50:28if Gary's daughter would be getting a discount,
0:50:28 > 0:50:31but he will hopefully be in a position to rent out downstairs
0:50:31 > 0:50:32within six months.
0:50:32 > 0:50:34So, will he repeat the process?
0:50:36 > 0:50:37Once we get the bottom one rented out
0:50:37 > 0:50:40and have got some money coming back in again,
0:50:40 > 0:50:44yes, I'll be back at the auctions and I'll be doing it again.
0:50:45 > 0:50:49Any signs of taking things a bit easier, Gary, and, dare I say,
0:50:49 > 0:50:50semi-retire?
0:50:52 > 0:50:55I think I'm a little bit too young, just at the moment,
0:50:55 > 0:50:58but I think I need to be taking it a little bit easier
0:50:58 > 0:51:00than I have been doing, so, yeah,
0:51:00 > 0:51:03I just want to sort of pick and choose my jobs and my work now
0:51:03 > 0:51:07and slow down a little bit. I've done my stint, so, yeah.
0:51:12 > 0:51:16Time to catch a train back to the Welsh valleys, to the town of Porth,
0:51:16 > 0:51:19where I visited this three-bed terrace.
0:51:19 > 0:51:22The lot was guided at 45 grand plus.
0:51:22 > 0:51:25It was fairly spacious, with three good-sized bedrooms
0:51:25 > 0:51:30and a downstairs toilet, but things got a bit wobbly in the kitchen.
0:51:30 > 0:51:32There's a crack up here.
0:51:32 > 0:51:34Right around the edge of this ceiling.
0:51:34 > 0:51:37And there's a bit of movement, as well.
0:51:37 > 0:51:39And the reason for it wasn't hard to spot.
0:51:39 > 0:51:41It came from upstairs.
0:51:41 > 0:51:43You can see into the bathroom.
0:51:43 > 0:51:47There's no floor. You can see there's rot on the joists.
0:51:47 > 0:51:49Straight away, they would have to be checked.
0:51:49 > 0:51:51That didn't worry me.
0:51:51 > 0:51:54It seemed very fixable with a decent budget.
0:51:54 > 0:51:56Dan, his son Michael, and daughter Joanna
0:51:56 > 0:51:58bought this house for £48,000
0:51:58 > 0:52:01and they weren't worried either.
0:52:01 > 0:52:04But when I heard how much they were planning to do with it,
0:52:04 > 0:52:06I did begin to worry.
0:52:06 > 0:52:10Are you making the kitchen bigger, or are you making a better bathroom?
0:52:10 > 0:52:12- No, making the kitchen bigger. - Kitchen.
0:52:12 > 0:52:14- No toilet downstairs?- No toilet downstairs.
0:52:14 > 0:52:16- Wow.- We've got the toilet upstairs.
0:52:16 > 0:52:18We are hoping to bash this through here,
0:52:18 > 0:52:21open some French doors out and also at the back there,
0:52:21 > 0:52:23make the kitchen larger.
0:52:23 > 0:52:27While that to-do list was growing, so were the mushrooms in the house,
0:52:27 > 0:52:29and the garden was, too.
0:52:29 > 0:52:32So I thought these first-time developers had enough on their plate
0:52:32 > 0:52:35without looking for more work.
0:52:35 > 0:52:39They aimed to overhaul this home with a budget of £15,000
0:52:39 > 0:52:42and complete the project within four months.
0:52:43 > 0:52:47We're back five months later, to see how they've got on.
0:52:47 > 0:52:50MUSIC: Gone, Gone, Gone by Alison Krauss and Robert Plant
0:52:50 > 0:52:54# Really gone (Done moved on)... #
0:53:03 > 0:53:05The monochrome kitchen looks super-fresh,
0:53:05 > 0:53:07but all those pesky mushrooms...?
0:53:10 > 0:53:12They've been chopped away by the professionals,
0:53:12 > 0:53:15and now the only thing to add are the carpets.
0:53:17 > 0:53:21They have also put in a cracking new bathroom, which means the lot is...
0:53:21 > 0:53:25# Really gone (Done moved on)
0:53:25 > 0:53:28# Cos you done me wrong... #
0:53:28 > 0:53:32One thing I've noticed, which hasn't gone is the downstairs bathroom.
0:53:32 > 0:53:34Care to explain, lads?
0:53:35 > 0:53:41The plan for the kitchen was to knock through into the utility
0:53:41 > 0:53:43and make it into one big, large kitchen.
0:53:43 > 0:53:45We decided not to do that.
0:53:45 > 0:53:49We decided to just decorate the utility and make it an area
0:53:49 > 0:53:51to put in some white goods.
0:53:51 > 0:53:53Yes, because, you know,
0:53:53 > 0:53:57we thought it would have been too costly to do that for the budget.
0:53:57 > 0:54:00I think they made the right call here.
0:54:00 > 0:54:01And the utility area?
0:54:01 > 0:54:04Well, who doesn't like a utility area?
0:54:04 > 0:54:07They idea to put in French doors was abandoned, too,
0:54:07 > 0:54:09and that's because they decided
0:54:09 > 0:54:12they needed to focus their investment upstairs.
0:54:22 > 0:54:23We wanted a high-spec bathroom
0:54:23 > 0:54:26because we realise the bathroom, you know,
0:54:26 > 0:54:29is important to a property and people, you know,
0:54:29 > 0:54:31if they're purchasing a property,
0:54:31 > 0:54:34it's always the kitchen and the bathroom which sell it.
0:54:34 > 0:54:41The bathroom joists cost us probably double what we wanted to pay for it.
0:54:41 > 0:54:44We've had some good builders that have worked with us.
0:54:44 > 0:54:47The chap we work with, he's got a good eye for detail,
0:54:47 > 0:54:49which we've trusted him with most of the way
0:54:49 > 0:54:51and we're quite happy with the finish.
0:54:52 > 0:54:55The three bedrooms also have a coat of paint
0:54:55 > 0:54:56courtesy of Dan and Michael.
0:54:58 > 0:55:01We did try and do some painting, but, again,
0:55:01 > 0:55:03we leave that up to the professionals.
0:55:03 > 0:55:06I mean, they had to go back after us and patch some stuff up.
0:55:06 > 0:55:11But yeah, you know, it's all a learning experience.
0:55:11 > 0:55:14The textured wallpaper and ceilings are a thing of the past,
0:55:14 > 0:55:16but who did the better paint job?
0:55:17 > 0:55:20- I was better than him. - He was better.
0:55:20 > 0:55:23I can't see much and he kept telling me that it was no good.
0:55:23 > 0:55:26He's got bad eyes. He couldn't really see where he was leaving
0:55:26 > 0:55:28drips on the walls and all sorts, so I said...
0:55:28 > 0:55:30- "This is no good." - I said, "That's it,
0:55:30 > 0:55:32"we've got to leave it up to the pros."
0:55:33 > 0:55:36Dan and Michael also put their gardening gloves on
0:55:36 > 0:55:40and helped clear out the overgrown mess up the back.
0:55:40 > 0:55:42Did this father/son team enjoy working together?
0:55:42 > 0:55:44It's been good. Yeah.
0:55:44 > 0:55:45It's been all right.
0:55:45 > 0:55:48- We've enjoyed it. - It's his business, mostly,
0:55:48 > 0:55:51I just give him a hand. He argues with me.
0:55:51 > 0:55:53No, there's no arguments.
0:55:53 > 0:55:55LAUGHTER
0:55:55 > 0:55:56I can't win.
0:55:58 > 0:56:01So, did they win when it came to their £15,000 budget?
0:56:02 > 0:56:06We have overspent by approximately £2,000.
0:56:06 > 0:56:09So we've come in at about £17,000, which isn't too bad.
0:56:09 > 0:56:13- Because of the bathroom.- The bathroom cost us double the amount
0:56:13 > 0:56:14it should have.
0:56:15 > 0:56:19That means a total investment of £75,000.
0:56:19 > 0:56:22So let's find out what two local estate agents
0:56:22 > 0:56:25made of this first project, starting with the thoughts of
0:56:25 > 0:56:27the agent who saw it before the renovations.
0:56:27 > 0:56:30It's quite a transformation from the first impression.
0:56:30 > 0:56:33When I came in first, the garden was very overgrown,
0:56:33 > 0:56:34the windows and doors.
0:56:34 > 0:56:37Basic things. I think they probably spent a little bit too much because
0:56:37 > 0:56:40they've done quite a few designer touches, which I wouldn't have done,
0:56:40 > 0:56:42but it has turned out very nice.
0:56:42 > 0:56:45When they were thinking about knocking through into the utility,
0:56:45 > 0:56:47I think they've done a good job leaving it as it is,
0:56:47 > 0:56:50because a downstairs WC is quite beneficial for a family.
0:56:50 > 0:56:53I think what's been done is really, really good.
0:56:53 > 0:56:57What I'm pleased about is the fact that they've kept three bedrooms
0:56:57 > 0:57:01and the bathroom upstairs, together with the downstairs' cloaks.
0:57:01 > 0:57:03Great for families.
0:57:03 > 0:57:06Dan and Michael always intended on selling.
0:57:06 > 0:57:09Will they make a profit on that £75,000 investment?
0:57:09 > 0:57:11I think the value of this property,
0:57:11 > 0:57:14I would start at £90,000 and it would probably achieve anywhere
0:57:14 > 0:57:16between 85 and £90,000.
0:57:16 > 0:57:22I would look to market at £89,950.
0:57:22 > 0:57:27And I would expect offers around £85,000 and above.
0:57:27 > 0:57:32We were thinking of putting it on the market for around about £95,000.
0:57:32 > 0:57:35With a view to getting about 90,000 or thereabouts.
0:57:36 > 0:57:40I think it's about the right price.
0:57:41 > 0:57:46Selling for £90,000 would mean a potential profit of £15,000
0:57:46 > 0:57:48minus taxes and fees.
0:57:48 > 0:57:51Now that they've done it once, what advice would they give to others?
0:57:51 > 0:57:54- Go for it. - Go for it. Yes.
0:57:54 > 0:57:57- I would.- It's worth it. And it's a good, fun experience.
0:57:57 > 0:57:58And I can see why people go to the auction
0:57:58 > 0:58:01and they get a buzz out of it, like.
0:58:03 > 0:58:07Well, that is all the property stories we have for you today.
0:58:07 > 0:58:10But do not worry, because we've got plenty more to tell.
0:58:10 > 0:58:13Yes. So join us again soon, with more investment tales
0:58:13 > 0:58:16- here on Homes Under The Hammer. See you.- Bye-bye.- Goodbye.