0:00:00 > 0:00:05If you've ever been to an antiques auction, you'll know how exciting auctions can be.
0:00:05 > 0:00:10It's one thing buying a teapot there. What about buying your house at auction?
0:00:10 > 0:00:14Today we meet some people who all decided to take the plunge.
0:00:14 > 0:00:17Let's see how they got on buying their homes under the hammer.
0:00:42 > 0:00:49- Portsmouth is home to HMS Victory, - but who will be victorious in the auction battle for this house?
0:00:49 > 0:00:52There's potential in this south London terrace.
0:00:52 > 0:00:56Potential to extend, convert into flats,
0:00:56 > 0:00:59and I think potential to make somebody quite a lot of money.
0:01:01 > 0:01:04These properties have been sold at auction.
0:01:04 > 0:01:08We'll find out who bought them and what they paid when they went under the hammer.
0:01:16 > 0:01:22Being near the sea means that land and property in and around Portsmouth is always at a premium.
0:01:22 > 0:01:25The Fratton area of Portsmouth is no different,
0:01:25 > 0:01:29so finding a reasonably priced auction property in this area
0:01:29 > 0:01:31feels like my ship's come in.
0:01:37 > 0:01:40When you're doing research for any property,
0:01:40 > 0:01:46it's always wise to check out your neighbours or, at least, how much their property sold for.
0:01:46 > 0:01:50Now, a quick search online and I found out the last five houses
0:01:50 > 0:01:58that sold down this street sold for an average of £120,000, which makes this house not a bad buy.
0:01:58 > 0:02:03It's got a guide price of £100,000 to £105,000.
0:02:03 > 0:02:06Let's have a look around first.
0:02:06 > 0:02:11One of Byerley Road's selling points is that it's just a short walk to Fratton Station,
0:02:11 > 0:02:15but the downside is that the trains run right behind these houses.
0:02:15 > 0:02:20It's definitely not for someone who's looking for a bit of peace and quiet.
0:02:22 > 0:02:24So let's have a look around, then.
0:02:24 > 0:02:27It's a little bit cramped in here.
0:02:27 > 0:02:28The reception room's quite small
0:02:28 > 0:02:33and it looks as though somebody's already started a bit of a dodgy paint job.
0:02:33 > 0:02:37Got a corridor leading through to the second reception room, much bigger.
0:02:37 > 0:02:40I've got to say, it feels quite roomy in here.
0:02:40 > 0:02:41A lovely area under the stairs.
0:02:41 > 0:02:48You could put some doors there, you could store away your vacuum, all your coats, I quite like that.
0:02:48 > 0:02:51Somewhere to, perhaps, put a nice fireplace,
0:02:51 > 0:02:54you've got double-glazed windows, which is good.
0:02:54 > 0:02:57But what I really like is the fact that, through here,
0:02:57 > 0:03:02there's an extension and it goes quite a long way back.
0:03:04 > 0:03:07One of the rooms housed in that extension is the kitchen.
0:03:07 > 0:03:10It looks rather spartan, but there are plenty of work surfaces.
0:03:10 > 0:03:15It wouldn't take too much to rip out the old units and put in a new kitchen.
0:03:15 > 0:03:17The services are here.
0:03:17 > 0:03:21However, it's the other room in the extension that I'd like to change more.
0:03:21 > 0:03:23Now, this is the downstairs bathroom.
0:03:23 > 0:03:30The good news is there's a white suite, the bad news - it's stuck between the lounge and the kitchen.
0:03:30 > 0:03:35Now, Martin and I always say if you can get your bathroom upstairs it's worth doing.
0:03:35 > 0:03:39We always think it does add a little bit more value to your property.
0:03:39 > 0:03:42So I'm going to pop up there and see if we can do that.
0:03:42 > 0:03:46Upstairs consists of just two bedrooms.
0:03:46 > 0:03:52They're not a bad size, though probably not big enough to accommodate a bathroom, unless...
0:03:52 > 0:03:56Now I've been upstairs and have seen the size of the bedrooms, they're a great space.
0:03:56 > 0:04:01I don't think I'd want to eat into it by creating a bathroom, although you have got a couple of options.
0:04:01 > 0:04:04You could perhaps put an en suite through here.
0:04:04 > 0:04:07You could push all the way through across the stairs,
0:04:07 > 0:04:12encroach into the other bedroom and maybe put a shower and a toilet up here.
0:04:12 > 0:04:14You could also put a corridor along here.
0:04:14 > 0:04:19You could build on the extension out there, just like the neighbours have done.
0:04:19 > 0:04:21But when you take into account the costing
0:04:21 > 0:04:25and the time it's going to take, I just don't think it's worth it.
0:04:28 > 0:04:32This is a lovely little house that doesn't need too much doing to it.
0:04:32 > 0:04:36So let's see who fancies their chances at auction.
0:04:40 > 0:04:41145, now.
0:04:41 > 0:04:47We go to the terraced house for improvement and that's at 113 Byerley Road, Fratton in Portsmouth.
0:04:47 > 0:04:51Walking distance to the shops, two bedrooms and a bathroom.
0:04:51 > 0:04:56It's a good property to add value to here, plenty of potential in it.
0:04:56 > 0:04:57We've got a guide of 100 to 105.
0:04:57 > 0:05:00Anyone going to pop in at £100,000?
0:05:00 > 0:05:03£100,000, I'm bid. 100, I've got.
0:05:03 > 0:05:06And two? 102? 102 sitting down.
0:05:06 > 0:05:07And four, may I say?
0:05:07 > 0:05:09104 bid, I have.
0:05:09 > 0:05:11And six, now? And six?
0:05:11 > 0:05:13At £104,000. Six, James? 106.
0:05:13 > 0:05:16106 sitting down, he's too late.
0:05:16 > 0:05:17106. And eight?
0:05:17 > 0:05:20108. It's still worth it. 108.
0:05:20 > 0:05:23108, I'm bid. And 10? Nine I'll take if you wish.
0:05:23 > 0:05:26109, I'm bid. 110 sitting down, sir.
0:05:26 > 0:05:31110, 111. 112? 112 at the back?
0:05:31 > 0:05:33112? 112. 113, madam, can I take?
0:05:33 > 0:05:39113? And 14? 114. And 15? And 16?
0:05:39 > 0:05:43Just got a few seconds to think about that last decision.
0:05:43 > 0:05:46115,000 I've got. Are we all done at £115,000?
0:05:46 > 0:05:51I'm selling for the first time. 116, I've got. He won't go 117, I'm sure.
0:05:51 > 0:05:53Try it and...
0:05:53 > 0:05:58No? 117? £116,000 by the bar. You've been with me for a long time, sir.
0:05:58 > 0:06:02For the first time. £116,000 bid, I'm selling for the second time.
0:06:02 > 0:06:05116 for the third and final time. All done. Yours by the bar, sir.
0:06:05 > 0:06:09116, thank you very much. 3148.
0:06:09 > 0:06:17For 116,000, the new owner of the two-bedroomed terraced house in Byerley Road, Portsmouth is Murray.
0:06:17 > 0:06:21He lives just along the coast in Southampton with his wife and three children.
0:06:21 > 0:06:27I've been buying and selling property now for about five years, mostly with a partner.
0:06:27 > 0:06:30We've probably bought and sold about 20, I would say.
0:06:30 > 0:06:32We had up to about a dozen in a rental portfolio.
0:06:32 > 0:06:36Sold a few of those over last year or so, just so we can get some cash back out
0:06:36 > 0:06:39to do more buying, refurbishing and selling on.
0:06:39 > 0:06:42Are you a full-time property developer?
0:06:42 > 0:06:45No, I've got a day job, a fairly busy day job.
0:06:45 > 0:06:50I work in a bank and have done since I left school, so 25 years ago.
0:06:50 > 0:06:54So that keeps me pretty busy, so this is very much weekends, evenings and so on,
0:06:54 > 0:06:58but I've got a very good builder so I don't get too involved in the day-to-day stuff.
0:06:58 > 0:07:03Murray's banking background gives him a good insight into the property market
0:07:03 > 0:07:06and, importantly, how to find your purchases.
0:07:06 > 0:07:10This is an area that many people feel uncomfortable about,
0:07:10 > 0:07:14especially when spending - and perhaps borrowing - over 100,000.
0:07:14 > 0:07:18People often say, "Have a good relationship with your bank manager."
0:07:18 > 0:07:22- Now, what does that involve? Taking them out to lunch?- That helps!
0:07:22 > 0:07:26Keep them informed of your business, really, good and bad,
0:07:26 > 0:07:30and make sure that if you do need something then you give them plenty of notice.
0:07:30 > 0:07:32Let's talk about this property now, Murray.
0:07:32 > 0:07:34Are you going to keep it?
0:07:34 > 0:07:39Yeah, this one I will keep for a short period, 12, 24 months,
0:07:39 > 0:07:43so I'm really just going to do a fairly minimal spend.
0:07:43 > 0:07:45So what do you call a limited spend?
0:07:45 > 0:07:48Probably get away with about between 6 and 7,
0:07:48 > 0:07:52depending on what we finally do with the bathroom and how that scrubs up, really,
0:07:52 > 0:07:54whether we need to replace it.
0:07:54 > 0:07:57The bathroom was my initial disappointment.
0:07:57 > 0:07:59I was like, "The bathroom's downstairs,"
0:07:59 > 0:08:02but you do kind of expect to see that in a terraced house like this.
0:08:02 > 0:08:05Are you going to move it upstairs, keep it downstairs?
0:08:05 > 0:08:09No, I think just given the terrace and the way the houses are here,
0:08:09 > 0:08:12there's an acceptance of a downstairs bathroom.
0:08:12 > 0:08:16You could put it upstairs but there would be cost, it would be time,
0:08:16 > 0:08:20and you would almost spoil the two good-sized bedrooms up there.
0:08:20 > 0:08:22Murray will project manage this renovation
0:08:22 > 0:08:26but rely heavily on the builder he uses for all his properties.
0:08:26 > 0:08:29This is key to allowing Murray to do two jobs at once.
0:08:32 > 0:08:38- Murray, you're a busy man - you're a banker, you've got property, do you ever have fun?- Yeah.
0:08:38 > 0:08:41I've got a family, I've got three children, two boys and a girl.
0:08:41 > 0:08:46They keep me busy. The boys play football and rugby, but they're interested in property.
0:08:46 > 0:08:51They'll often come down, have a look at the properties with me and help clean up.
0:08:51 > 0:08:54- Is it something that you can see them doing in the future?- I hope so.
0:08:54 > 0:08:57I hope that I can build it up over the next few years,
0:08:57 > 0:08:59but who knows with children?
0:08:59 > 0:09:03- So it's a family business, really? - Yes. Yeah, yeah, that's the intention, yeah.
0:09:04 > 0:09:07Like most bankers, Murray is organised.
0:09:07 > 0:09:09He's one step ahead of the game.
0:09:09 > 0:09:13He's got his builder and he knows exactly where he's going next.
0:09:13 > 0:09:18He won't have any problem with the finance, but he's got to stick to his budget.
0:09:18 > 0:09:23The margins are so tight here. Let's see what happens later on in the programme.
0:09:27 > 0:09:31I'm in Tooting, southwest London, between Wimbledon and Streatham.
0:09:31 > 0:09:36This is Southcroft Road, about half a mile from Tooting High Street.
0:09:36 > 0:09:43We're here to see a three-bedroom mid-terrace with a guide price of 245,000 quid
0:09:43 > 0:09:46which for round these parts sounds a bit of a bargain to me.
0:09:47 > 0:09:53The exterior doesn't give away much, but once inside, it's just as well.
0:09:53 > 0:09:59The front reception room is a good size with an original fireplace, but the decor is tired.
0:09:59 > 0:10:03There's a second reception room at the back with this hideous light
0:10:03 > 0:10:07and a bizarre corridor leading to the only bathroom in the house
0:10:07 > 0:10:10with separate WC and the stairs.
0:10:10 > 0:10:15Through there is a kitchen in dire need of replacing.
0:10:15 > 0:10:19I noticed a smell permeating this house -
0:10:19 > 0:10:24damp and lots of it, probably rising damp, but it needs sorting.
0:10:24 > 0:10:29Upstairs, there are three good size rooms with more signs of damp.
0:10:29 > 0:10:33They are bigger than I thought, so you could move the bathroom up here.
0:10:33 > 0:10:41There is planning permission to build a two-storey extension at the back of the property.
0:10:41 > 0:10:44It will reduce the garden to almost nothing,
0:10:44 > 0:10:49but it opens up the possibility of converting the house into flats.
0:10:49 > 0:10:54But there's still a lot of work involved in renovating this house,
0:10:54 > 0:10:57especially if you wanted to move that bathroom upstairs.
0:10:57 > 0:11:04This house isn't without its problems, but it's not gonna cost too much to get them sorted out.
0:11:04 > 0:11:11Then you're left with a place that's got great potential to extend, to convert into flats
0:11:11 > 0:11:15and to make somebody a lot of money. Let's go to the auction.
0:11:19 > 0:11:24So, Lot 18, Tooting. I like Tooting. Where will I kick off on this?
0:11:24 > 0:11:28How much...? Yeah? 250?
0:11:28 > 0:11:32Yeah? You in the front, yeah? 255, just behind you.
0:11:32 > 0:11:35260? 260. 265.
0:11:35 > 0:11:39270...? 270.
0:11:39 > 0:11:41271. Yeah?
0:11:42 > 0:11:46Two-seventy... 275.
0:11:46 > 0:11:50280. 285.
0:11:51 > 0:11:54285, standing up.
0:11:54 > 0:11:58286 at the back? You're gonna lose it.
0:11:58 > 0:12:00285, standing up. Anyone else?
0:12:00 > 0:12:04First time, second time... 286. 287.
0:12:04 > 0:12:07288, sir.
0:12:07 > 0:12:10289?
0:12:11 > 0:12:16Yeah? 289. 290? Round it off to 290. 290.
0:12:16 > 0:12:19291, yeah?
0:12:19 > 0:12:22Well done. 291. 292.
0:12:22 > 0:12:24292.
0:12:24 > 0:12:28You had a crack. 293?
0:12:28 > 0:12:31293. 294. 295.
0:12:31 > 0:12:33296?
0:12:35 > 0:12:38296. Well done. 297.
0:12:38 > 0:12:41298?
0:12:43 > 0:12:45298?
0:12:47 > 0:12:49297, with you.
0:12:49 > 0:12:54First time, second time, third and last time, are you all done...?
0:12:54 > 0:12:57Sold, 297, well done.
0:12:57 > 0:13:03'The successful bid was made by first-time auction goers Satis and his wife Lourdes.
0:13:03 > 0:13:10'I had to meet them at their home in Surrey, rather than Tooting. I wonder why?'
0:13:10 > 0:13:15It's lovely to meet you both. Why are we meeting in your home?
0:13:15 > 0:13:20We were supposed to have completed yesterday, but there's been a small hiccup.
0:13:20 > 0:13:25We went to auction and bid on the property. We were successful.
0:13:25 > 0:13:29We had 15 days to complete after auction,
0:13:29 > 0:13:36but because our mortgage offer hadn't come through within the 15 days, we couldn't complete.
0:13:36 > 0:13:41But we were served notice after the 15 days
0:13:41 > 0:13:45with an additional five days in which to complete,
0:13:45 > 0:13:49but we thought we had an additional ten days to complete.
0:13:49 > 0:13:54Because we hadn't completed in five days, they withdrew the contract.
0:13:54 > 0:14:00'Once you've bought at auction, you pay a 10% deposit and the rest after an agreed period of time.
0:14:00 > 0:14:07'In this case, they didn't have a mortgage approved which could mean losing the house.'
0:14:07 > 0:14:11What's gonna happen now? What is the vendor saying?
0:14:11 > 0:14:15There's probably gonna be an increase in the price.
0:14:15 > 0:14:20- He's gonna put the price up?- Yeah. But we don't know by how much.
0:14:20 > 0:14:24- They said £20,000.- £20,000?!
0:14:24 > 0:14:30Yeah, they said 20 and we're gonna negotiate with the solicitor to reduce the amount.
0:14:30 > 0:14:35We don't know when they're gonna write the new contract.
0:14:35 > 0:14:39- And start all over again.- And you'd paid deposit money, had you?
0:14:39 > 0:14:44- Yes, we paid 10% on the day. - Which would be about 20...?
0:14:44 > 0:14:49- £29,700.- £29,700?
0:14:49 > 0:14:53- Yeah.- Theoretically, you could lose that, couldn't you?
0:14:53 > 0:15:00- Yeah.- Yes.- So, to clarify then, you either pay an, at this moment, unknown amount of extra money,
0:15:00 > 0:15:03- possibly £20,000...- Possibly, yeah.
0:15:03 > 0:15:06..for being a day late
0:15:06 > 0:15:10- or you lose your £29,700 deposit? - That's right.
0:15:10 > 0:15:15I can't believe you're smiling. You poor things!
0:15:16 > 0:15:21- You obviously love this house. - Yeah.- Why did you want to buy it?
0:15:21 > 0:15:24I know the area quite well.
0:15:24 > 0:15:29I grew up there. We've been looking for properties around that area.
0:15:29 > 0:15:35This one caught our eye because it had planning permission
0:15:35 > 0:15:37for a two-storey extension.
0:15:37 > 0:15:44We thought that was a good idea and that's why we decided to go for this property.
0:15:44 > 0:15:49- Are you buying it for personal use or for investment?- For investment.
0:15:49 > 0:15:54- You'll rent it out?- We'll be looking at letting it out initially.
0:15:54 > 0:16:00Then once we get some money in, we'll do the extension and then sell it on.
0:16:00 > 0:16:03Our main idea is to sell it on.
0:16:03 > 0:16:09- How much will it cost? - About £15,000.
0:16:09 > 0:16:15'The couple currently run a shop and have been in the retail business for five years,
0:16:15 > 0:16:18'but have decided to do more property development.
0:16:18 > 0:16:24'They're both used to hard work, so the damp and renovation work shouldn't faze them.
0:16:24 > 0:16:27'That's if they get the house!'
0:16:27 > 0:16:32- How soon will you know what's gonna happen?- In a couple of days.
0:16:32 > 0:16:35Probably by the end of the week.
0:16:35 > 0:16:38What's the best-case scenario?
0:16:38 > 0:16:43That hopefully the vendor comes to an agreement with the price.
0:16:43 > 0:16:46How much do you think would be OK?
0:16:46 > 0:16:51Possibly another 10,000? I still think it's a lot.
0:16:51 > 0:16:55- Just for a day.- But we don't want to lose our deposit.
0:16:56 > 0:17:00- I hope it turns out all right. I really do.- Thank you.
0:17:00 > 0:17:07- We'll come back in a few months and hopefully you'll be in there. - Yeah.- Hopefully, yeah.
0:17:09 > 0:17:14Well, Lourdes and Satis have got themselves into a bit of a pickle
0:17:14 > 0:17:18and it proves how important it is to read that legal pack.
0:17:18 > 0:17:23It seems they will be faced with more expense than they anticipated.
0:17:23 > 0:17:30Quite how much and whether they end up buying this place, we'll find out later.
0:17:33 > 0:17:36It's been a few months now since those properties were sold.
0:17:36 > 0:17:39Have the new owners made progress or do they have regrets?
0:17:39 > 0:17:41Let's go back and find out.
0:17:45 > 0:17:48We're back to the Fratton area of Portsmouth.
0:17:48 > 0:17:50Here, just a stone's throw from the station,
0:17:50 > 0:17:56part-time property developer, Murray, had bought a two-bed house for 116,000.
0:17:56 > 0:18:01As managing partner in a bank, he wanted to see what it was like on the other side of the tracks.
0:18:10 > 0:18:13Downstairs, the fireplace has gone
0:18:13 > 0:18:18and the place is generally spruced up with fresh paintwork and new carpets.
0:18:18 > 0:18:21Also, the dining room at the back has been given a new lease of life.
0:18:21 > 0:18:24We have completely redecorated the property,
0:18:24 > 0:18:28put in a new kitchen and new bathroom, new flooring
0:18:28 > 0:18:32and completely redone the garden which was an overgrown jungle, really.
0:18:32 > 0:18:34We're finished and ready to go.
0:18:34 > 0:18:39Murray works full time in a bank, which is useful for sorting out the finances.
0:18:39 > 0:18:45He doesn't do any of the work here himself, so key to all his property development is his builder.
0:18:48 > 0:18:52Because I'd been working with Robbie for about five years now
0:18:52 > 0:19:00and he's done maybe 20 properties or so, we can pretty much say to him, "The usual job, please, Rob,"
0:19:00 > 0:19:04and he'll deal with it, which is great. I don't have to give up too much time myself.
0:19:05 > 0:19:09Clearly having a reliable builder is critical to any development.
0:19:09 > 0:19:15While it costly to contract out, it's usually worth it for the quality and speed of the work done
0:19:15 > 0:19:18and in this case, Murray gets value for money.
0:19:18 > 0:19:24Murray might not be hands-on himself but one thing I'm sure he looks after is the cost and the budget.
0:19:29 > 0:19:33We initially thought up to 7,000, between six and seven,
0:19:33 > 0:19:36depending on how we finish the specification and so on.
0:19:36 > 0:19:42Because it's gone very much to plan we've come in at £6,700
0:19:42 > 0:19:47and that includes the carpet and putting in a brand-new fridge freezer and washing machine.
0:19:47 > 0:19:49We're pleased with that.
0:19:49 > 0:19:55The garden's been completely transformed, bringing a little bit of the beach front into the space.
0:20:07 > 0:20:10Murray likes to hang onto properties for a couple of years
0:20:10 > 0:20:15and, depending on the market conditions, sell on to enable further reinvestment.
0:20:15 > 0:20:22This will be property number five in his rental portfolio and he really seems to have got the property bug.
0:20:22 > 0:20:26Of course, you make money out of it at the end of the day.
0:20:26 > 0:20:29I guess that's ultimately why I do it alongside the main job
0:20:29 > 0:20:32to provide more income for the family to enjoy.
0:20:32 > 0:20:34# This is all about the money. #
0:20:36 > 0:20:42But how much additional income will this house with a train line at the bottom of the garden earn?
0:20:42 > 0:20:46Time to ask the estate agents to see if they give this one the green light.
0:21:08 > 0:21:11Murray bought the house for 116,000.
0:21:11 > 0:21:17With that £7,000 budget, he's spent in total £123,000.
0:21:17 > 0:21:20Is his account in the red or in the black?
0:21:20 > 0:21:24I think we'd put it on the market at 134,995.
0:21:24 > 0:21:31I'd expect less than that for a quick sale, but between 130 and 135.
0:21:31 > 0:21:35That's a quick £10,000 profit even with deductions -
0:21:35 > 0:21:40that's probably a better return than if Murray had put the money in the bank.
0:21:40 > 0:21:45I think from a rental point of view it's probably worth somewhere in the region of 575 to 625.
0:21:45 > 0:21:48Something more like 600 would actually be achieved.
0:21:48 > 0:21:53Overall, then, this has been a solid, no-frills investment.
0:21:53 > 0:21:56A decent short-term profit or a reasonable long-term income.
0:21:56 > 0:22:01It's not going to make Murray a fortune but it has made his money work better for him,
0:22:01 > 0:22:05plus there are other benefits he gets from his property sideline.
0:22:05 > 0:22:10It has helped me with my job as well because I've got to know about values and rents
0:22:10 > 0:22:13and how to run a business myself, which has been great.
0:22:13 > 0:22:16I've made money as well so that's got to be positive for me and my family.
0:22:16 > 0:22:20Pleased to get into property and looking forward to more.
0:22:20 > 0:22:26And with Murray's track record, I'm sure there are a few more properties down the line that he can bank on.
0:22:38 > 0:22:42Time now to see whether Lourdes and Satis have managed to resolve
0:22:42 > 0:22:46their legal problems and get their hands on the keys
0:22:46 > 0:22:48to that three-bedroomed terraced house in Tooting.
0:22:48 > 0:22:55The couple bid £297,000 for the property at auction, but they didn't check the legal pack.
0:22:55 > 0:23:00So, four months on, how have things worked out for them?
0:23:00 > 0:23:02Because we had missed that deadline,
0:23:02 > 0:23:08we had to pay an extra £20,000 in order to get the keys to the house.
0:23:08 > 0:23:11It was pretty stressful at the time.
0:23:11 > 0:23:16It's not the best of things, but it all worked out good in the end
0:23:16 > 0:23:23and even though we had to pay that extra, we're still pleased that we got the property.
0:23:23 > 0:23:28The couple are hoping to get back that £20,000 through legal channels,
0:23:28 > 0:23:32but has it left them a bit short?
0:23:32 > 0:23:39It did affect our budget because that was some of the money that we put aside to do up the property.
0:23:39 > 0:23:44Lourdes and Satis set themselves an initial budget of 15 grand
0:23:44 > 0:23:47to tackle the damp problems and refurbish the property.
0:23:50 > 0:23:54They fitted in new units and put in a new window to transform the kitchen.
0:23:56 > 0:24:02They knocked the WC and bathroom together to form one room with new tiles and new fittings.
0:24:05 > 0:24:08They've fitted new carpets and redecorated throughout.
0:24:09 > 0:24:12Amazingly, given the delay in getting started,
0:24:12 > 0:24:17they've managed to bring the project in on time and under budget at £12,500.
0:24:17 > 0:24:25The couple's long-term strategy has also enabled them to save a few pounds in the short term.
0:24:25 > 0:24:28Our plans for this property are to rent it out initially,
0:24:28 > 0:24:35then a year down the line, we would consider converting it to two flats,
0:24:35 > 0:24:38then either sell it or rent it.
0:24:38 > 0:24:41So we've gone for just a basic standard.
0:24:41 > 0:24:50Once we do convert it to two flats, then we'll do it to a very high standard.
0:24:50 > 0:24:55There's already planning permission for a single-storey extension
0:24:55 > 0:25:00to convert this property into two single-bedroom flats.
0:25:00 > 0:25:03But Lourdes and Satis would like additional planning permission
0:25:03 > 0:25:07to convert it into two two-bedroom flats.
0:25:07 > 0:25:10How much will this conversion cost?
0:25:13 > 0:25:20We would spend, to convert it to two-bedroom flats, around £80,000 to £90,000, to finish it.
0:25:20 > 0:25:27So far, the couple have spent around 330 grand on buying and refurbishing this property.
0:25:28 > 0:25:34Assuming they can get that extra 20 grand back, that will drop to 310,000.
0:25:34 > 0:25:40And if they do end up converting it into two flats, they'll have spent around £400,000.
0:25:42 > 0:25:50So how much can they expect to make when they sell up and how much can they get as rent in the meantime?
0:25:51 > 0:25:55I invited two local estate agents to have a look.
0:26:14 > 0:26:18As a rental property, I'd put it on the market probably in the region of 1,400 a month.
0:26:18 > 0:26:21I'd hope to achieve that. Certainly 1,300.
0:26:25 > 0:26:31I'd expect this house to be marketed at 399,950 and most likely get around the 390 mark.
0:26:31 > 0:26:34We might sell then!
0:26:34 > 0:26:37I don't know. No, that's great.
0:26:37 > 0:26:41That's well worth all the work we've gone through.
0:26:45 > 0:26:49Well, with just a few finishing touches before they can start renting this place out,
0:26:49 > 0:26:53it looks like a good outcome for Lourdes and Satis.
0:27:00 > 0:27:03We'll see you next time for more homes under the hammer.
0:27:03 > 0:27:05- See you then.- Goodbye.- Goodbye.
0:27:15 > 0:27:16Subtitles by Red Bee Media Limited
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