Channel 9 The Block 2011: Purchase, Reserve & Sale Prices, Renovation Costs, Rental Yields; Block houses expected to lose half a million dollars each. All four cottages bought by investors.
Topic Started: 22 Aug 2011, 08:43 AM (17,098 Views)
37 Cameron Street, Richmnond Josh Densten and Jenna Whitehead Vendor bid: $900,000 First bid from floor: $750,000 Final bid: $901,000 Reserve: $950,000 Result: Passed in
39 Cameron Street, Richmond Polly Porter and Waz Jones Vendor bid: $750,000 First bid from floor: $650,000 Final bid: $855,000 Reserve: $840,000 Result: Sold
41 Cameron Street, Richmond Katrina Chambers and Amie Godde First bid: $750,000 Final bid: $822,000 Reserve: $860,000 Result: Passed in
43 Cameron Street, Richmond Tania and Rod Walsh First bid: $750,000 Final bid: $832,000 Reserve: $850,000 Result: Passed in
For the ones that didn't sell, were those final bids the vendor bid (I didn't watch it)?
Watercress bought four Victorian and Edwardian terraces in a row after they passed in at auction in November for $2.85 million.
It also paid $198,000 stamp duty, taking the cost of each house to just under $950,000 before a porcelain tile or glass splashback had been put in place.
Does that mean ALL the vendors took a bath? Cost $950K each and they couldn't even sell them for $850K? Ouch!
They spent $950K per house, another $100K on renos, pumped 2 months of their lives into doing the reno, and only one sold, for a $210K LOSS!
The others couldn't even be sold? Describing this as 'taking a bath' is putting it mildly. What a waste of money!
Bulls, is this a healthy property market???
I think it might be even worse than that. If you read the article in the thread linked above, it says this --
Quote:
A second storey has been added to three of the houses, all four were restumped, rewired, replumbed and re-roofed, and each has had $100,000 spent on it by the contestants.
Claiming the house he was auctioning had had $400,000 of renovation work done, one agent – who appeared to hit puberty mid-auction, judging by his croaky voice – said "this could be the successful buyer's Alan Bond moment". It was a reference to Kerry Packer's infamous line (after buying the Nine network back from Bond at a massive discount in 1987) that "you only get one Alan Bond in your lifetime and I've had mine".
It's not totally clear, but I think it's saying the $100K reno by each contestant is on top of the restumping, rewiring, replumbing and re-roofing. If that comes to $400K as suggested above, then each of these houses made a loss of half a million dollars.
That's a total loss of 2 million dollars across all four houses.
Monumental waste of both time and money.
Did anyone here watch the series? How much was actually spent on fixing up the homes in total?
They are about to throw me on 3Aw to discuss thisd
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That's a total loss of 2 million dollars across all four houses.
Not that Channel 9 would be complaining - that's a pretty cheap way to produce one of the most popular reality TV shows on at the moment ;)
I also figure that buying a house like that is like buying the Sef Gonzales house. Nobody would really want it, because of fear of gawkers, and bad karma afterwards.
Property speculation is a type of gambling... But everyone knows that in gambling, the house always wins in the end.
Good numbers and comments here..after double checking, just rehashed these plus mentioned over stated clearance rates in Melbourne across prime time radio...lol
"No sympathy for the devil; keep that in mind. Buy the ticket, take the ride...and if it occasionally gets a little heavier than what you had in mind, well...maybe chalk it off to forced conscious expansion: Tune in, freak out, get beaten."My Webpage
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