zaph

profit on chopping block

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THE production company behind Channel 9's hit, The Block, may have bitten off more than it can chew after paying $3.6 million for a row of rundown terraces in Richmond.

As the property market cools, Watercress Productions might struggle to cover the cost of sales and renovations to the houses, which are in the shadow of the troubled Housing Ministry estate.

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.

JPP Buyers Advocates' Catherine Cashmore said Watercress would be "very, very lucky to break even" on the deal on sales price alone.

"They are starting high and it's a very big ask," Ms Cashmore said.

"The houses are situated across the street from the entrance to a supermarket carpark and under the shadow of Housing Ministry flats, which is a price-killer as far as real estate in Richmond goes."

http://www.heraldsun.com.au/news/more-news/profit-on-chopping-block/story-fn7x8me2-1226073576817

how embarrassment.

more at

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THE production company behind Channel 9's hit, The Block, may have bitten off more than it can chew after paying $3.6 million for a row of rundown terraces in Richmond.

As the property market cools, Watercress Productions might struggle to cover the cost of sales and renovations to the houses, which are in the shadow of the troubled Housing Ministry estate.

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.

JPP Buyers Advocates' Catherine Cashmore said Watercress would be "very, very lucky to break even" on the deal on sales price alone.

"They are starting high and it's a very big ask," Ms Cashmore said.

"The houses are situated across the street from the entrance to a supermarket carpark and under the shadow of Housing Ministry flats, which is a price-killer as far as real estate in Richmond goes."

http://www.heraldsun.com.au/news/more-news/profit-on-chopping-block/story-fn7x8me2-1226073576817

how embarrassment.

more at

This could be an excellent lesson to Australia that property doesn't always go up! Or a new format for that "Biggest Loser" show :D

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Hehe.

zaph wins this years block loser dropping a massive $50,000 in only three months. zaph get's to keep the furniture and the loss

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they put a million at risk every time they run an episode of how to be a millionaire. Surely this is only a minimal cost to the show even if they drop a half a million.

the issue as I see it is if even the mass of advertising that the block throws at the sale of its units and they still cannot turn a profit then this is an indictment on the market.

If the show actually starts making comments on the market like it is poor etc not blaming their choice in location it could be interesting viewing.

they might need to get one of the execs to buy one of them just to show with smart reno's you can still make a quid in the buy renovate sell model even if only one of the properties turns a quid. I suspect they need at least one to though.

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"The houses are situated across the street from the entrance to a supermarket carpark and under the shadow of Housing Ministry flats, which is a price-killer as far as real estate in Richmond goes."

Obviously the producer has never heard of the expression, "location, location, location".

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And Molly did block their lovely roof top terrace LOL ;-)

Nine was almost Blocked by Molly Meldrum

Meldrum lodged an objection to producers' plans for the four dilapidated townhouses because planned master bedrooms and garden roof terraces looked over his neighbouring property.
"But, basically, Molly didn't want people being able to look straight into his backyard."

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Cakes to keep them warm ?

Yeah thats bizarre. The journalist probably meant something else but was interrupted by the morning tea van

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Yeah thats bizarre. The journalist probably meant something else but was interrupted by the morning tea van

This week, residents have been bringing cakes around for the contestants and tradies to keep them warm.

it's a perfectly normal reaction to the plebs moving in. bake a sympathy cake.

I'm firing up the oven because the old bird across the road is considering selling.

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it's a perfectly normal reaction to the plebs moving in. bake a sympathy cake.

I'm firing up the oven because the old bird across the road is considering selling.

I just let the girlfriend go talk to them, she tries to be nice but is worse at human interaction than me :)

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I just let the girlfriend go talk to them, she tries to be nice but is worse at human interaction than me :)

a fresh baked cake makes words redundant.

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Full house expected for Block homes auction

The contestants - Josh and Jenna, Polly and Waz, Katrina and Amie, and Rod and Tania - are selling their homes in a tough property market.

Melbourne vendors have been battered by weeks of uncertainty as the property market struggles with sliding house prices, slow sales, rising stock levels and sharemarket turmoil.

All four houses are expected to sell for between $800,000 and $950,000, but Josh and Jenna's at number 37, a double-fronted Edwardian on a larger block of land, may command a premium.

Agents estimate that prior to their renovations each house was worth little more than its land value, about $650,000, which suggests Channel Nine paid a million-dollar premium.

''It's not about Channel Nine or the producers recouping what they've paid for them,'' a spokesman said.

''It's a TV show and it's rated far beyond what anyone expected.''

Richmond's median house price - all four homes are located in Cameron Street - was $823,000 in the June quarter, down 4.9 per cent over the year, according to a spokesman for the Real Estate Institute of Victoria.

I don't watch the show but it will be interesting to see what they sell for. 50 bidders is a lot. A few rubberneckers must have slipped through the net of the RE agents. The auction itself is private and they don't televise until tomorrow night. There must be a confidentiality agreement. It's being held at the Fitzroy town hall. That's right next to the Lord Napier, a lovely little pub...

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I don't watch the show but it will be interesting to see what they sell for. 50 bidders is a lot. A few rubberneckers must have slipped through the net of the RE agents. The auction itself is private and they don't televise until tomorrow night. There must be a confidentiality agreement.

I wonder if Consumer Affairs Victoria is in attendance. Its a sure bet they are.

Considering the results will not come out until tomorrow, it does set itself for the rumor mill. Maybe we should spread that none of them sold! I could just imagine the panic on Somersoft.

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TheAge: State raids The Block Estate Agents

CONSUMER Affairs Victoria has raided the offices of the real estate agents that last night auctioned the four properties in Channel Nine's The Block series.It is believed that they took copies of documents relating to The Block properties that are used to detect the illegal practice of underquoting, whereby a property's value is deliberately underestimated to bait interest from home buyers.

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That mean they sold it for a very good price :thumbdown: still plenty of morons/fools outside

does it? i would think that you could only prove underquoting if the reserve price was higher than the quoted price. i.e., if they pass in at a price that is above the quote price. how would they be able to prove it otherwise? unless someone was stupid enough to leave something in writing about how they were going to deliberately underquote...

anyway i think there would've been a lot of bidders for these properties anyway simply because they were on tv... stupid reason, but then again there's no shortage of stupid people...

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I wonder if Consumer Affairs Victoria is in attendance. Its a sure bet they are.

Well spotted.

I couldn't find any rumours. :(

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Ouch. Same time next year? That's only the second time I've seen so many attractive blonde girls in a row not understanding what's going on around them.

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Big LOL

"All the reserves were, however, set before the renovations began and presumably based on the $3.6 million"

"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 "

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Couldn't resist a look at the block for the auction bit- what a flop!

Clearance rate of 25%. How would Enzo spin that one?

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<br />Clearance rate of 25%. How would Enzo spin that one?<br />
<br /><br /><br />

50%, the 2 girls one has been sold after auction for the reserve, 860k.

2 months wasted for the contestants.ouch.

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