The Block Houses To Make A Loss
The Block houses even when refurbished have the Herald Sun claiming they will not be making a profit.
The article says:
The four properties in Cameron St, Richmond will be auctioned on August 20, with agents quoting $800,000 to $880,000 for the three single-fronted residences.
The double-fronted property renovated by Melbourne’s Josh and Jenna is being advertised for $900,000 to $990,000.
Watercress Productions paid about $950,000 each for the dilapidated Victorian and Edwardian houses, including stamp duty.
The four couples have each spent more than $100,000 renovating the properties, though that fails to take into account the second storey added to the single-fronted houses, which would have cost upwards of $200,000, pushing their cost to around $1.25 million each.
Advantage Property Consulting’s Frank Valentic said that once holding costs were taken into account, each house would need to raise between $1.3 million and $1.4 million to break even.
“There is no way they are worth that,” Mr Valentic said. “It’s definitely not what I would call a profitable renovation syndicate. But Channel 9 has paid a premium for their TV ratings.”
Biggin Scott Richmond director Russell Cambridge, who is selling Polly and Waz’s property at 37 Cameron St, said Watercress paid above the market rate to secure four properties side by side in fashionable Richmond.