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Nine Network revives The Block

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A clear sign that the RE market is at the frothy end of the spectrum.

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Australian broadcaster Nine Network has revived its home renovation format The Block, six years after the format went off-air.

The Block 2010 is currently in pre-production, with casting for four couples underway, Nine's director of programming Michael Healy announced. “The Block is a unique format that has always captured our ongoing obsession with real estate,” Healy said. “Right now, everybody’s talking about real estate again.”

The format see the couples compete against each other over eight weeks to renovate old homes and then sell them to the highest bidder. The winning couple will take home a A$100,000 (US$91,250) prize.

Localised versions of the show, which debuted in Australian back in 2003, later aired on ITV1 in the UK, Fox in the US (as The Complex) and Channel 10 is Israel. The format was also the subject of a long-running copyright theft dispute with New Zealand prodco Ninox Films, which was settled in Nine's favour in 2005.

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A clear sign that the RE market is at the frothy end of the spectrum.

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those with the least lost at at auction wins?

we only lost 100k on our makeover and we won the block!!!

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those with the least lost at at auction wins?

we only lost 100k on our makeover and we won the block!!!

"The littlest loser?"

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I could've sworn there was a thread from last years debacle. But I couldn't find it. Anyway it's back on the telly and I'm wondering how it's going to go. I don't watch it but I saw some shorts on the weekend and it looked like they were in port melbourne.

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I could've sworn there was a thread from last years debacle. But I couldn't find it. Anyway it's back on the telly and I'm wondering how it's going to go. I don't watch it but I saw some shorts on the weekend and it looked like they were in port melbourne.

I think the only episode worth checking out is the last one when they try and auction off the properties. Should make for uncomfortable viewing for REAs if the results are anything like the last season.

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I could've sworn there was a thread from last years debacle. But I couldn't find it. Anyway it's back on the telly and I'm wondering how it's going to go. I don't watch it but I saw some shorts on the weekend and it looked like they were in port melbourne.

Yeah, it's in Sth Melb I believe- that red house is in Tennyson St Elwood, drove past- stood out like dogs yarbles

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here's the thread SC

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Yeah, it's in Sth Melb I believe- that red house is in Tennyson St Elwood, drove past- stood out like dogs yarbles

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here's the thread SC

Link

Thanks PK. Found the thread. Relocating the 2012 Block HQ to here

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Thanks PK. Found the thread. Relocating the 2012 Block HQ to here

I watched some of the episodes of the Block - first time i watched it Pretty interesting actually.

I'm not so big on renovating, but I recently just made an offer on a property which needs some renovations. I'm not aiming to flip it, just go for the positive cash flows instead

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The Block inspection: Crowds expected

The comments are amusing. There's only 5.

1 to 1.2m for a house that has laminate flooring?

rightio...

I think part of the problem with a show like the block is that viewers (and most likely) potential buyers see how much work goes into the houses so that should translate into what people think the value is and to be honest being quite familiar with property in South Melbourne I'd say (especially in the current market) they'd be lucky to get anywhere near $1.2m.

CommenterMichael Location North Caulfield Date and time May 13, 2012, 2:01PM

hooray

CommenterRichard Location Melbourne Date and time May 13, 2012, 11:23PM

When can i escape this country???

Commenterimacelebritygetmeouttahere Location Date and time May 14, 2012, 1:18PM

Over $1m for a block house, no chance! There is a place nearby that is asking $750k and has had a recent price drop after no action and it looks a lot nicer than any of the block houses. No one in their right mind is going to pay top dollar for a rushed reno with shoddy finishing. It's going to be another epic fail final auction.

Commenterin the know Location up the road Date and time May 14, 2012, 3:29PM

Wow, judging from all the comments today there seems to be a flood of interest.....NOT!

Commentershemp Location melb Date and time May 14, 2012, 3:51PM

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Return on investment going down!

Top-selling Block 2011 Richmond property reduces asking rent

One of the four Richmond properties on the hit Channel 9 renovation series The Block 2011 is back on the rental market, but with a lower rental asking price.

It was the dearest home sold at last year's auction – the three-bedroom 37 Cameron Street Edwardian cottage, which Josh and Jenna sold for $1 million

Before last September's auction buyers were given guidance that the property could be expected to fetch between $1,200 and $1,300 per week in rent and came with price hopes of $900,000 to $990,000.

It was initially for lease with a weekly $1,250 asking rent last September.

Its is now available for rent at $1,100 a week.

Its initial asking rent post-auction reflected a 6.3% gross yield.

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Wonder what 'the market' would pay on the day?

"Heckler understands they are doing everything they can to avoid red faces at the auction this year: the Dorcas Street properties will be quoted at $1 million-plus - by some estimates, a few hundred thousand short of what such a newly renovated property should fetch..."

Linket

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Unconfirmed whispers

Without any confirmation – and plenty of trepidation given confidentiality clauses required from all attendees - the whispers suggested all four Dorcas Street terraces sold surprisingly well - for in excess of the timid $1 million plus price expectations that understandably cautious agents gave in the early days of the marketing campaigns.

It proved a remarkably successful lure in securing interested bidding parties, attracted also my the tax depreciation entitlements, who turned competitive during the auctions.

Based on the unconfirmed reports, the terrace prices averaged about $1.45 million.

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First Official Result: 405 Dorcas Street SOLD $1.62 million ($506,000 profit above reserve for Brad and Lara)

Second Official Result: 407 Dorcas Street SOLD $1.44 million ($448,000 profit above reserve for Dan and Dani)

Third Official Result: 401 Dorcas Street SOLD $1.33 million ($355,000 profit above reserve for Dale and Sophie)

Fourth Official Result: 403 Dorcas Street SOLD $1.4 million ($434,000 profit above reserve for Mike and Andrew)

Properties back baby! :o

Edit: Figures provided courtesy of the Australian Property Forum. On the odd occasion first with the news. :)

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First Official Result: 405 Dorcas Street SOLD $1.62 million ($506,000 profit above reserve for Brad and Lara)

Second Official Result: 407 Dorcas Street SOLD $1.44 million ($448,000 profit above reserve for Dan and Dani)

Third Official Result: 401 Dorcas Street SOLD $1.33 million ($355,000 profit above reserve for Dale and Sophie)

Fourth Official Result: 403 Dorcas Street SOLD $1.4 million ($434,000 profit above reserve for Mike and Andrew)

Properties back baby! :o

How much profit did Channel Nine make?

This following article quoted earlier in this thread seems to have "hit the nail on the head", to pardon a pun.

But producers are apparently happy to take a hit on the sale price to make sure they actually do sell this time, and to keep viewers and advertisers happy after last year's let-down.

Reserve prices will be unveiled the day before the June 30 selloff - in the hope this will fuel competition when potential bidders realise how low the target prices are.

So advertising and promotional revenue must be worth taking a hit on the bottom line.

I wonder if that is going to be revealed to the gullible public.

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How much profit did Channel Nine make?

Plenty probably... from advertising.

They paid $3.8 million for the four properties, then did substantial structural works, including removing and reconstructing the roof, even before the show began. Then there's taxes to be paid. In other words, the "reserve" prices from last night were less than the unrenovated costs.

Add a few hundred grand for the materials and works that went on during the show...

The auctioneer who called one of the properties "still below cost price" at a million and a half dollars was probably not wrong. Still, it made for a feel-good finish.

So advertising and promotional revenue must be worth taking a hit on the bottom line.

I wonder if that is going to be revealed to the gullible public.

Ha! No you don't...

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First Official Result: 405 Dorcas Street SOLD $1.62 million ($506,000 profit above reserve for Brad and Lara)

Second Official Result: 407 Dorcas Street SOLD $1.44 million ($448,000 profit above reserve for Dan and Dani)

Third Official Result: 401 Dorcas Street SOLD $1.33 million ($355,000 profit above reserve for Dale and Sophie)

Fourth Official Result: 403 Dorcas Street SOLD $1.4 million ($434,000 profit above reserve for Mike and Andrew)

Properties back baby! :o

That was copied, straight from APF?? http://australianpropertyforum.com/topic/9633984/2

An excellent result, all round, indicative of a strong housing market!!

I look forward, to 2013................

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They paid $3.8 million for the four properties.

They actually paid $3.8 million in their original state.

You have got to be kidding!

They were nothing more than a pile of timber. They almost reconstructed them, from the little bit I watched.

They were actually paying $3.8 million for the land value!!!

I'm flabbergasted. :shocking:

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That was copied, straight from APF?? http://australianpropertyforum.com/topic/9633984/2

An excellent result, all round, indicative of a strong housing market!!

I look forward, to 2013................

One sale; does not a market make.

But if you are correct, I hope you are snapping up all the bargains around Sherlock.

You could make a killing in the next 5 years.

Or you could go broke.

Edited by Solomon

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I commented to RSH2H that if that bloke is doing it for an ad- why wouldn't other 'interested parties' also do their bit through the buyers advocates..

The house: $1.4m. The publicity: priceless

"New Energy Watch owner Danny Wallis used his own money to buy a $1.4 million property on reality TV show The Block last night despite wearing a T-shirt to promote his company, a spokesman says."

Linket

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I can see the profit figures in the news articles. I don't watch the show, does anyone know the cost of the renovations?

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That was copied, straight from APF?? http://australianpropertyforum.com/topic/9633984/2

An excellent result, all round, indicative of a strong housing market!!

I look forward, to 2013................

Yes it was a direct rip off. I'm not proud. I should have acknowledged the source. That's what you get posting after a hard days bbqing. All fixed now. :)

And congratulations to the APF for getting the figures out first. I can't bring myself to actually watch the show itself so had no way of getting the figures from there. Makes my skin crawl.

Roll on 2013. Next year instead of bogans we get nines stable of b grade stars. :) I can hardly wait.

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I commented to RSH2H that if that bloke is doing it for an ad- why wouldn't other 'interested parties' also do their bit through the buyers advocates..

The house: $1.4m. The publicity: priceless

"New Energy Watch owner Danny Wallis used his own money to buy a $1.4 million property on reality TV show The Block last night despite wearing a T-shirt to promote his company, a spokesman says."

Linket

Sounds like my last employer. The funny thing is his stepson bought one of the company plants from the administrators, although eventually the administrators caught up with the stepson. Somebody has to pay, not the banks they insure.....Oh yeah, types like AIG?

Energy Watch went into administration on May 18 with debts of $8.6 million — including $886,000 in employee entitlements, $1.1 million to a secured creditor and $6.5 million to unsecured creditors, including the tax office. It is now in liquidation.

Read more: http://www.theage.com.au/entertainment/tv-and-radio/the-house-14m-the-publicity-priceless-20120702-21cln.html#ixzz1zTaTcnr2

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