Barefoot Investor Scott Pape reveals where renters are beating out homeowners

Sick of hearing about investors who made big money in the property market? Well, Barefoot Investor Scott Pape shows the suburbs where the tables have turned.

Scott Pape says the property market isn’t always a winning investment. Picture: Jason Edwards

Barefoot Investor Scott Pape has uncovered the Aussie areas where renters are beating homeowners at the property game, as some owners cop $200k+ losses.

The renowned personal finance author, columnist and television presenter zoned in on an apartment in Melbourne that was recently listed for sale in his latest column.

The building features an indoor heated pool, gym, a resident’s lounge and even a yoga room.

So, 10 years ago, the sellers snapped up the apartment up for $860,000.

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But as Pape pointed out in his column, the apartment had just gone under offer with a $630,000-$650,000 price guide — a whopping $210,000 loss at least for the owner.

Pape added that the loss was before inflation, body corporate fees, council rates, land tax, maintenance, agent’s selling commission, and 10 years of interest on the home loan were factored in.

“This is not an isolated case,” he said.

“Research house CoreLogic has identified 65 areas (mainly in inner-city Sydney and Melbourne) where prices today are still below the record highs from the 2010s.”

The barefoot investor said the real winner in this scenario was the renter.

“They’ve enjoyed 10 years of downward dogging in the yoga room and paddling about in that fancy heated pool, plus they’ve even had a plumber on speed dial to unclog the dunny,” he said.

The data revealed there were 14 suburbs across Melbourne where unit prices were typically lower today than in the property market’s peak of 2010, and 51 areas in Sydney.

Unit values ranged from 0.3 per cent to 18.4 per cent less than 14 years ago, with Epping in Sydney topping the list for the biggest decline.

East Melbourne unit owners were the worst off in Victoria’s capital, with values down 17.2 per cent from 2010s peak.

Although prices have fallen in some parts of Australia, PropTrack data showed national new listing volumes declined in November, falling 19.7 per cent over the month to sit 5 per cent below November 2023 levels.

Price reductions are also impacting those in wealthier brackets, with Travers ‘Candyman’ Beyon cut the price of his mansion to help it sell.

The Candyman mansion at 36 River Cove Place, Helensvale was on the market for more than a year.

It comes as Aussie and global personalities are being forced to slash their price guides on their homes as they sit on the market for days, months and even years.

Tobacco tycoon Travers ‘Candyman’ Beyon cut the price of his Candy Shop Mansion to help it sell after it was on the market for more than a year.

The Freechoice Tobacconist franchise owner listed his 13-bedroom property for sale in December 2023 looking for offers above $25m.

Travers Beynon, aka The Candyman, on his pontoon at his Hope Island home. Picture Glenn Hampson

But now, his expectations have dropped and so has its price guide, down to $18m-$20m.

Similarly, singer Natalie Bassingthwaighte and her ex-husband Cameron McGlinchey sold their Ewingsdale home in October after they lowered their price expectations from $3m-$3.25m, when it was first listed to $2.7m-$2.9m before it was sold for an undisclosed amount.

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Originally published as Barefoot Investor Scott Pape reveals where renters are beating out homeowners