'No real world profit' made on The Block homes
PROPERTY experts say while the auction results for The Block All Stars were "strong" there was no "real world" profits in the outcome.
PROPERTY experts say while the auction results for The Block All Stars were "strong" there was no "real world" profits in the outcome.
In a dramatic finale of the Channel 9 ratings hit, blue house favourites Amity and Phil Rankine pocketed $295,000 profit and $100,000 prize money after their renovated Federation cottage sold for $1.67 million under the hammer, beating out rivals Josh and Jenna Densten by a $20,000 margin.
After all four hammers fell at The Block auctions in Bondi last night, Eastern Suburbs agents, vendors and Nine crew must have all breathed a collective sigh of relief because unlike the last time the toolbelts and tiaras reality TV show was in Sydney, every house did sell on the night.
The total profit for this season came to $815,000. But while the contestants are all leaving with tidy sums of cash, local real estate experts said “technically little to no real world profit has been made”.
“The houses actually went cheaply and the buyers have got some bargains here,” one real estate agent closely involved with the show said.
The four already updated heritage semis were apparently each bought for between $1.2 million and $1.4 million less than two years ago and were then partially demolished. Currently, the median house price for a house in Bondi is $1.4 million, according to RP Data.
Property pundits said that with the costs of applying for an additional DA, plus the hundreds of thousands of dollars spent on fixtures, labour and stamp duty, there has been no true profit turning over the properties in such a short time frame.
Phil and Amity’s semi was the last of the four houses to go on under the hammer after the mum-and-dad team received a reserve price of $1.375 million earlier in the day.
Runners up Josh and Jenna were just pipped at the auction post by a mere $20,000 - peanuts when it comes to Sydney real estate prices.
The newlywed’s house was the first cab off the rank and although achieving an impressive $1.65 million result, their reserve price was also $1.375 million. Therefore the pair will only earn $275,000.
However, the real winners of the nightwere Dani Wales and Dan Reilly because despite coming in third with a $1.575 million sale price, the ever-bickering pair walk away from the rush-to-renovate show with the biggest booty over two seasons.
The Melbourne couple banked $220,000 profit for their terrace but it came down to the last bid on the last auction to seal it for the Adelaide couple, who juggled the supervision of their two children during the renovation.
The couple has pocketed a grand total of $668,000 thanks to The Block.
And the chumps of the night, despite winning the last challenge of the series, were Mark Bowyer and Duncan Miller with a $1.37 million sales result. The unlucky duo will only receive $25,000 for their efforts.
It was a bitter blow for the tradie mates who endured a torrid time on the series, with Bowyer's wife diagnosed with skin cancer and then rushed to hospital himself after suffering a suspected heart attack.
Bondi real estate expert Ric Serrao, principal at Raine & Horne Double Bay, said the results achieved at The Block auction were “strong” for the current Bondi market. But when taking into consideration what had been spent on the homes “there is not that much profit left over”.
“If you’re looking to flick a Bondi house like that then you’d need to spend somewhere in the area of $250,000 to $300,000 to renovate, then consider stamp duty and holding costs,” Mr Serrao said.
“I think The Block is a great show, I think it’s fun. But if people really think they can do the same thing themselves, and they’re not professionals, then they’re getting the wrong message,” he said.
THE BLOCK ALL STAR PROFITS
$815,000
Auction reserves and sale prizes
Phil and Amity
Reserve $1.375m
Sales $1.67m
Profit: $295,000
Josh and Jenna
Reserve $1.375m
Auction result $1.65m
Profit $275,000
Dani and Dan
Reserve $1.355m
Auction result $1.575m
Profit $220,000
Mark and Duncan
Reserve $1.345m
Auction result $1.370m
Profit $25,000