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The Block’s Greville Pabst “the finale gave lessons to us all on buying”
November 26, 2015
What an auction and what a season! The Block once again proved to be a big challenge for a new wave of contestants – their efforts deserving of their wins. Eleven seasons in, The Block continues to draw audiences, fuelling Australia’s love affair with real estate.
Click here for all images of the winning property.
As a valuer and buyer’s agent, investors represent a significant portion of my client base. The Blocktagon apartments were appealing to not only home buyers but also investors, properties from previous seasons demonstrating strong rental income and attractive tax depreciation benefits. All the apartments were purchased at prices facilitating yields of at least 4%, which is a strong return for an investor at this level.
Lessons for investors at home
This season I heard many investors talk of the benefits of Airbnb, the turnkey readiness of the apartments certainly opens up this opportunity for an owner with the time to manage it.
When buying property, it is important to conduct research to ensure your hard-earned cash is put to use in a way that builds your wealth. To ensure you’ve selected an asset that does this your research and preparation should include analysis. Assess your budget, taking into consideration borrowing capacity, mortgage repayments, rental return and maintenance and associated costs, as well as consideration regarding locations, property style and configuration and of course your purchase strategy. This planning, together with building and pest inspections, liaising with professionals such as conveyancers and other contractors can take hours – but it’s time well spent in the long run.
Take home advice for bidding at auction
When watching The Block or a real life auction scenario, viewers should take note of the various bidding techniques. Rather than hike prices up by getting in early, WBP Property Group encourages buyers to evaluate the situation and only bid when they have had time to assess the body language and technique of the other bidders. If a buyer or their buyer’s agent finds the right time to enter the bidding, they also need to know when to stop if a surprise last minute bidder rears their head. The biggest lesson? A sale is never guaranteed until that hammer goes down.
Did The Block properties sell at realistic prices?
Before the auctions, I predicted this season’s apartments would sell for $1.7 million – $2.15 million each, plus a premium for “The Block” factor, with the final outcome reflecting my predictions.
Generally speaking, apartments in the area sell for an estimated $8,000sqm to $10,000sqm of living area, depending on other individual factors such as building size, street, parking, floor plan, orientation, and level of finish.
Dean and Shay, and Luke and Ebony’s apartments sold for great prices – due in part to the emotional connect with the sale on behalf of the owner-occupier buyers.
I wish all contestants some relief following their hard work on The Blocktagon, and all buyers a great return on their investment.
Did you tune in to The Block finale? What did you think about the final result? What would you do if you won $755,000?
About the author: Greville Pabst is a regular on The Block and the CEO of WBP Property, a leading property valuations and buyers advocacy firm.