Property investment lessons from The Block

The rookie renovators took out the $100,000 prize on top of a $636,000 profit on the series finale of The Block: Fans v Faves.

Despite copping the lion’s share of the criticism this season, Geelong couple Steve O’Donnell and Chantelle Ford attracted the highest price for their warehouse conversion which sold for $2.47 million.

All four apartments on The Block sold within a relatively small price margin, with Brad and Dale bringing up the rear with $2.31 million.

The results were as follows:

1. Steve and Chantelle, 1/47 O’Grady: $2.47 million ($636,000 above the adjusted reserve)
2. Alisa and Lysandra, 3/47 O’Grady: $2.375 million ($616,000 above the adjusted reserve)
3. Kyal and Kara, 2/47 O’Grady: $2.44 million ($567,250 above the adjusted reserve)
4. Brad and Dale, 4/47 O’Grady: $2.31 million ($507,250 above the adjusted reserve)

The top two teams would hardly have minded losing the final challenge to Kyal, Kara, Brad and Dale, who got $27,250 lopped off their reserve price against the twins’ and Steve and Chantelle’s $16,000 reserve cut.

Steve and Chantelle originally preferred apartment 2 for its city views, but after losing a coin toss to Kyal and Kara, chose apartment 1. While Kyal and Kara’s apartment at 2/47 offers both a sunny northerly aspect and city views, 1/47 also sits at the northern street side of the warehouse, with the advantage of windows all along the building’s western side.

Despite the team’s inexperience and the criticisms levelled against their styling credentials, the apartment’s stellar location had them take out the major prize. As one property expert commented, “You can change the furnishings, but you can’t change the aspect.”

But it seemed that perhaps one of the greatest factors at play was the order in which the auctions took place, with prices ascending with each successive auction. Each team nominated their position in the proceedings, with Brad and Dale choosing to go first, followed by Kyal and Kara, then Alisa and Lysandra before Steve and Chantelle.

By volunteering for final position, the winning couple were able to take advantage of buyer desperation with all other apartments already sold.

Proceedings opened with Brad and Dale’s apartment, auctioned by Karl Gillon of Buxton Albert Park. A vendor bid was placed at $1.75 million, finishing at $2.31 million. Kyal and Kara’s apartment was auctioned by Warwick Gardiner of Greg Hocking Holdsworth, who brought in $2.44 million for the married couple. Next was Alisa and Lysandra’s tri-level, auctioned by Anton Wongtraken of Dingle Partners, who handled the sale of their winning apartment on The Block: Sky High.

Steve and Chantelle’s auction by David Wood of Hocking Stuart saw two buyers’ agents locked in a bidding war, with Block mainstay Frank Valentic of Advantage Property Consulting securing the final apartment for a young couple at $2.47 million. The result makes Steve and Chantelle’s profit margin the highest ever seen in The Block’s 11 year history.

This article first appeared on Property Observer.