The Block – Did anyone get a bargain?

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Anybody who has every read my blog or followed me on twitter knows that I am an avid watcher of The Block and this season was no different.  For those that live in another universe and don’t watch commerical or free to air TV anymore last night was the series finale finishing with the auctions!

46A Regent street Elsternick

Source: Hockingstuart

Thankfully the producers of The Block have taken notice of the feedback from previous series and didn’t make us sit through a drawn out ‘reserve price’ production.

Josh and Elise, Sarah and Jason and Ronnie and Georgia all got a reserve of $2.6 million, whilst Stix and Wombat and Hannah and Clint received reserves of $2.5 million each. I thought that Josh and Elise were given a bit of a bonus because for my thinking a northernly aspect is worth something.  I was surprised Ronnie and Georgia got the same as the two end houses but a quick check of RP Data reveals that their block size was the largest and that has to count for something too.

So Josh and Elise went first. Dave Hughes purchased their house. I was so surprised to see this on TV as now the whole of Australia knows where he lives!  At $3,067,000.00 for a property on 440 sqm he paid the equivalent of $6,970 sqm –  a beautiful house but I think he paid top dollar.  Jason and Sarah went next.   Their house is at the southern end of the row.  Their block was a bit bigger than Josh and Elise’s at 466sqm and with a sale price of $3,000,007 the purchasers paid the equivalent of $6,452 sqm.

Next was Stix’s and Wombats. I think the whole nation was cheering these guys on and with a sale price of $2,650,000 and a profit of $130,000, whilst they were gracious I think they would have to be disappointed. Their property was the bargain of the night at just $5,686.00sqm.

Ronnie and Georgia. Well they made some controversial choices and it didn’t pay off. Whilst the house was probably the most high end of the lot, that pool, which made for great drama on the show, didn’t pay off and given the trouble of getting it in, there is no way to remove it.  Funny auction too.  No vendors bid, just a the property has been passed in.  Nicole looked perplexed.  I think it was made for television.  I am sure that Nicole and Frank are given instructions on how to bid! Anyway a profit of $130,000 is nothing to sneeze at.  Overall their property sold at $5,817 sqm.

Last but not least was Hannah and Clint.  The novice renovators!  Given that their renovations were panned the whole show, as if buyers would be looking to pay a premium.  At $5,734 sqm the owners of this property have purchased well.  And whilst $95,000 is nothing like the $447,000 (+$100,000 prize) life changing money Josh and Elise won $95,000 is still $95,000.

The Domain prize.  Funny that Jason and Sarah only received 80.5 points in the domain prize for what buyers want (2nd last) and yet their property sold at a significant premium – I guess the ‘experts’ don’t always know everything!

So how do The Block sale prices compare with other properties in the area.  8 and 10 Prentice Street Elsternwick are probably the most comparable houses which have been sold in Elsternwick since July.  No 8 Prentice Street sold for $$2,105,000 ($6083 sqm) and 10 Prentice Street sold for $2,110,000 ($5,910 sqm) so it seems that the producers when they set the reserves might not have been as generous as they have been in past seasons.

Remember that this is a competition to win $100,000 and everyone with the exception of Clint and Hannah achieved that, so I guess that makes them all winners!  Until series 14 begins I guess I will just get back to watching the local property market.

Margaret Godfrey is a Mortgage Broker in Newcastle. If you are considering buying a property get in touch with Margaret at mgodfrey@smartline.com.au or call 0451 471 061 for an obligation free chat.

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