cobran20

The Renovators

17 posts in this topic

The cheapest house (originally a small cottage in Blacktown) sold for a profit of 18.2%. The next best was the most expensive house with a grand profit of < 3%.

As for the other 4, well ...:rolleyes:

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When the main male host described the poor result of the auctions as- "the market is a fickle mistress",

Recession she had to have cracked it "What- the housing market is an irrational woman?"

Wants to complain- *chuckles*:laugh:

Gee they're struggling to sell...

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Nah. I'm currently pitching a show to the networks that showcases various trading styles as the way to fortune. I need a chartist cobran. You interested? We could disguise the voice and blur the picture for anonymity.(hacker style) I'm the dice man. Got an economist. Wulfgar's in for gold and euro bonds. If we can entice Tinpusher as the FX man... Or boz?

Now that would be a show worth watching. :thumbsup:

Edit: 1 mill each winner takes all. :) Sorry boz didn't mean to forget you.

Edited by staringclown

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Nah. I'm currently pitching a show to the networks that showcases various trading styles as the way to fortune. I need a chartist cobran. You interested? We could disguise the voice and blur the picture for anonymity.(hacker style) I'm the dice man. Got an economist. Wulfgar's in for gold and euro bonds. If we can entice Tinpusher as the FX man... Or boz?

Now that would be a show worth watching. :thumbsup:

Edit: 1 mill each winner takes all. :) Sorry boz didn't mean to forget you.

Can I be in there for drunken sideshows?

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Nah. I'm currently pitching a show to the networks that showcases various trading styles as the way to fortune. I need a chartist cobran. You interested? We could disguise the voice and blur the picture for anonymity.(hacker style) I'm the dice man. Got an economist. Wulfgar's in for gold and euro bonds. If we can entice Tinpusher as the FX man... Or boz?

Now that would be a show worth watching. :thumbsup:

Edit: 1 mill each winner takes all. :) Sorry boz didn't mean to forget you.

Can't help you as I'm not a trader. Strictly a 'medium-term' kind of a guy!

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Just thinking about the results since I seldom watch these reality shows, are the rennovation costs mentioned in the show only refer to materials and not labour? Each house seemed to have a team of people working on it and their cost would not be cheap, sending all results deep in the red!

SA builder wins The Renovators

A 27-year-old builder from South Australia has won The Renovators after his Blacktown fibro cottage sold for $440,000.

Michael Lynch took home prizemoney of $100,000 after the western Sydney home he had renovated throughout the competition received the biggest profit of the six houses at auction.

"I'm really blown away," Lynch said.

"I can't believe it. It hasn't sunk in yet."

The fibro cottage was the cheapest house in Ten's TV renovation competition, with the smallest budget yet managed to take home a profit of $68,012.

The next most profitable house was Luke Pollock's inner city terrace, which sold for $925,000 with a $25,732 profit.

While all six houses sold at auction, the weatherboard house was the only other property to sell for a profit.

Lynch's navy blue team thought they had very little chance of winning when they lost two members in the first week the competition moved to the houses.

But Lynch and his teammate up until the final week, 21-year-old real estate agent Jarrad O'Connell, managed to win a number of challenges to ensure they were contenders on the show.

And, Lynch said, the type of challenges they won were huge benefits.

"It was a number of things," Lynch said of the win.

"The prizes we won were the right ones for the house. The swimming pool was what we needed for the house and if we didn't win the furniture package we would have had a very bare looking house."

The pair's work ethic also proved useful on the show because it meant they did a lot of work themselves instead of hiring others to do it for them.

"We literally didn't stop when we were out there," he said.

"And because we used our own labour, we got more bang for our buck."

While O'Connell was happy for the property he worked so hard on to win the competition, Lynch said it was bittersweet for his former teammate.

"It was a bit of a catch 22 for him but he was so proud to be part of the winning house," he said

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Surprised that they're bringing back the show next year. It can't be a good plug for the RE market.

A bit more detail on the results.

link

VICTORIAN contestants Peter Mosticone and Melissa Thomsen have suffered the indignity of walking away empty-handed after the finale of The Renovators.

The winner of the ailing Channel 10 reality show was South Australian builder Michael Lynch, who pocketed $100,000.

In a result that mirrored the fizzer finale of The Block, three of the six renovated houses sold at a loss.

Mosticone's half-done house cost a total of $802,083 but could fetch only $770,000 at auction.

Thomsen's weatherboard made it into the black, with a measly $1145 profit from the $575,000 sale price.

Lynch managed a healthy $68,012 for his fibro cottage in the winner-take-all TV competition.

The Renovators result showed that Sydney's housing market is in the same sort of slump that affected the Melbourne auctions on The Block.

Start of sidebar. Skip to end of sidebar.

.End of sidebar. Return to start of sidebar.

Lynch pocketed $25,732 profit from the sale of Luke Pollock's city terrace, with Ten forced to throw in $5111 to get to the $100,000.

The Renovators has been a huge ratings disappointment for Ten since it made its debut on July 24.

The series, which cost a reported $25 million to produce, has achieved about half of the expected 1.5 million viewers an episode expected by Ten.

Despite the disappointing ratings, Ten is still insisting The Renovators will return next year.

"We have already confirmed at the upfronts (2012 programming launch), that The Renovators will be returning in 2012. However, we will obviously be reviewing the components (of this year's series) that did and didn't work," a Ten spokesman said.

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I think it says more about the wisdom of renovating and flipping properties than it does about the state of the market.

I know plenty of people who still think that spending money on a house = profit. However, in a market that is relatively sane, people will price those improvements in at their cost, so you basically raise the value of a house by the money you put in.

In past times the profit was actually from a hot market making everything go up in the 12 months you are holding the property.

It might work if you can do a lot of the work yourself, but even then you need to pray that your time will be rewarded.

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It was amusing at how much the renovators believed their houses were worth - shows the delusion of the Australian public when they do up and sell houses. "They're getting a bargain", made both me and the missus chuckle.

Also amusing was the oft-repeated phrase, "tough market". A nice reminder to anyone watching the show.

Incidentally, I don't think that any of them really turned a profit, if you add in the "free" stuff won from weekly prizes (the winners won a free in-ground pool!), original stamp duty, and selling agents' fees.

The most humourous auction was surely the one that went for $770K, where a young Asian lady had the highest bid at $710k, and was persuaded by the auctioneer and REAs in the crowd to bid against the auctioneer. Not only that, but they somehow got her to bid at $770k against a vendor bid of $750k, coming over her previous bid of $720k (which I thought they got her to bid over her own $710k bid, but I could be mistaken and the $710k bid could've come from someone else).

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As a clue as to how much they thought the houses were worth, the guy that came second thought his 3 bedroom inner city terrace (in Glebe, was it?) was worth over $1.1M! It sold for $901k.

Also amusing to see the smarmy Chris Gray struggle to spruik his usual rubbish. BTW, this was filmed prior to Chris Gray's bizarre comments on public speaking and poor performances of TV renovation show houses at auctions - so it seems that Chris Gray was getting in his excuses in advance.

To be fair, I suspect that they overpaid on some of the houses to begin with.

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The most humourous auction was surely the one that went for $770K, where a young Asian lady had the highest bid at $710k, and was persuaded by the auctioneer and REAs in the crowd to bid against the auctioneer. Not only that, but they somehow got her to bid at $770k against a vendor bid of $750k, coming over her previous bid of $720k (which I thought they got her to bid over her own $710k bid, but I could be mistaken and the $710k bid could've come from someone else).

That woman was clueless and the auctioneers must of known her price limit and wrangled it out of her. Just highlights what a dodgy prcatice auctions are and best thing was that it was shown to millions of people.

Laughed at the $68k renovation of the winning fibro house, you'd be lucky to get a new kitchen, 2 bathrooms and paint job for that money, never mind a pool, virtually new house, landscaping, etc.

Overall, the end show was bear porn, especially as it was in 'rock solid' Sydney. Moral of the story is, buy already renovated or demand much higher discounts for completely unrenovated.

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Just thinking about the results since I seldom watch these reality shows, are the rennovation costs mentioned in the show only refer to materials and not labour? Each house seemed to have a team of people working on it and their cost would not be cheap, sending all results deep in the red!

We have an answer:

I think that the actual loss of these properties has been hugely underestimated.

Each of the properties was awarded additional funds as prizes throughout the competition which were not counted in the 20% renovation budget.

The value of all of the free labour, and advertising would also have been enormous. I am sure many other costs have not been included in that 20% as well.

If these had been private projects, these people would have lost a lot of money on every single one of these properties.

This is the reality of the current property market, and the clearest possible sign that there is a much more significant downturn in property values than the statistics are indicating

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Can I be in there for drunken sideshows?

I'm counting on it! You'll be doing the daily market wrap. This will involve sipping the champers (or the beverage of your choice) in a different exclusive and sumptuous location each night. There will a bit of guffawing involved. Nothing too strenuous. Are you OK with the monocle and the top hat? :)

Can't help you as I'm not a trader. Strictly a 'medium-term' kind of a guy!

That is a great shame. You'd have been perfect for the part. I thought about including a secular trend, medium term, buy and hold role, but it just wouldn't make good television. Let me know if you change your mind.

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...Are you OK with the monocle and the top hat? :)

I'd be sad without it. I think I still have the cardboard monocle and top hat that was made for me by the techies at a workshop I used to manage. They liked me to look sharp.

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