Latest news with #FrankValentic
Daily Mail
a day ago
- Business
- Daily Mail
The Block star warns the Channel Nine homes are a dud buy ahead of upcoming season in Daylesford
Property guru Frank Valentic has issued a stark warning that homes featured on Channel Nine's The Block are often a 'dud buy', struggling to hold their value after the cameras stop rolling. One of the biggest reasons for this, the Melbourne-based buyer's agent said, is because the properties do not come with enough land. The Advantage Property Consulting director and familiar face on The Block pulled no punches when asked whether the contestant-renovated homes are a good investment. 'It's land that appreciates over time. Buildings depreciate,' he told referencing the first six seasons of The Block set in eastern suburbs apartment blocks, and adjacent townhouses, in Sydney. Meanwhile serial Block buyer Adrian Portelli gave away all five of the Philip Island homes he purchased last year for $15million in a raffle. From A-list scandals and red carpet mishaps to exclusive pictures and viral moments, subscribe to the DailyMail's new showbiz newsletter to stay in the loop. One in five buyer's from The Block's previous 19 seasons have ended up re-selling their made-for-TV home at a loss. One particularly unfortunate purchaser found themselves $600,000 out of pocket after offloading their property, just six years after purchasing it. Many of these 'renovated' homes have also languished on the market for hundreds of days, gathering dust. Although The Block houses can be a good investment for high-income investors seeking tax benefits and capital growth, they come with potential risks. Chief among them is the ability to successfully market a property whose renovation flaws have been aired for all of Australia to see. Of the 32 Block properties re-listed for sale since being auctioned fully furnished on-air, the Herald Sun reported 'seven have sold at a loss, two more failed to sell entirely and seven more struggled to seal a deal — taking more than 60 days to do so.' The worst offender was a three-bedroom apartment in Port Melbourne, from the 2016 season. It fetched a hefty $2.59 million under the hammer but was then flogged in 2022 for a paltry $1.98 million – a jaw-dropping $610,000 loss. Even the infamous former South Yarra hotel from season 11, where a self-proclaimed vampire gigolo was once accused of a horrific crime, has seen its Block apartments struggle. One unit sold for $1.722 million in 2016, a $13,000 drop from its original sale price a year earlier. Another sat on the market for 278 days with a $2.445 million price tag that failed to attract a single buyer, only to be re-listed in 2023 and languish for another 291 days. Valentic said keen investors should keep their eyes peeled for suburbs poised for a boom. In Melbourne, he believes areas like Elwood, Richmond, and Reservoir could follow in the footsteps of Toorak - the city's most elite suburb - rewarding savvy buyers who get in early. Filming for the 21st season of The Block is already underway in Daylesford, regional Victoria. Five new teams of everyday Aussies are currently transforming rundown holiday homes into luxury properties as part of a new neighbourhood within Hygge Property's Middleton Field estate. Belle Property Daylesford principal Will Walton, who sold the sprawling site to Channel Nine, confirmed the cast and crew are integrating well with the local community. With Portelli officially retiring from purchasing The Block homes in 2024, this upcoming season may prove a real test of the market for the properties. The median house sale price in Daylesford, Victoria, Australia, is approximately $819,000 - Daylesford's property market, particularly for houses, has experienced a recent decline in activity. While it was a popular area for investors, it's no longer considered a top-performing investment location, with a negative annual growth compound rate and a relatively low rental yield. However, it's important to consider that Daylesford's appeal as a desirable lifestyle location continues to attract buyers, particularly those seeking a tree-change.
News.com.au
4 days ago
- Business
- News.com.au
Block buyer Frank Valentic reveals Melbourne suburbs tipped to boom
The Block regular Frank Valentic says suburbs like Elwood, Richmond and Reservoir could follow in Toorak's footsteps, and reward buyers who get in early. Advantage Property Consulting director and buyers advocate Frank Valentic said ripple effects from Melbourne's most expensive suburbs were already pushing into more affordable postcodes, where gentrification, infrastructure upgrades and buyer demand were starting to overlap. 'Elwood, it's Brighton's neighbouring suburb and can benefit from ripple effect,' Mr Valentic said. 'Richmond, it's Toorak's neighbouring suburb and is more affordable.' 'I'd be locked out': Mum's $65,000 home warning Mr Valentic added that buyers willing to take a long-term view could also find opportunity in Reservoir, Preston, Dromana and McCrae. 'I think areas like Reservoir and Preston still offer great bang for buck,' he said. 'Peninsula suburbs such as Dromana and McCrae are great value for the water views you can get.' While some suburbs have grown by more than $3m since the 1980s, Mr Valentic said the fundamentals of capital growth remained the same, starting in prestige areas and spreading outwards. 'They usually follow the ripple effect, the ripple starts in blue chip suburbs and spreads outwards to more affordable area,' he said. The Advantage Property Consulting director said even outer suburbs like Mill Park, Seaford and Frankston were now seeing signs of gentrification. 'Yes, some outer suburbs 20km plus from Melbourne are seeing gentrification,' Mr Valentic said. He also said young buyers were often discouraged by today's prices but could still build wealth by getting a foothold in the market. 'Yes, they would feel discouraged, but there are still opportunities to get into the market somewhere, even if it's buying a unit or apartment. 'It's important to stay positive and try to get your foothold in the market. 'You may need to be more flexible on your wish list and suburb criteria.' Mr Valentic warned buyers to be cautious in certain inner-city markets. 'High-rise inner-city apartments and surrounding inner suburbs where there is an oversupply of properties compared to demand,' he said. Prominent Melbourne buyers advocate Cate Bakos said buyers in Melbourne's top tier are more focused on rarity and long-term legacy, when speaking about prestigious St Georges Rd strip. 'At the end of the day, how do you even peg a value on something this rare?' Ms Bakos said. 'A huge block in Toorak versus a small one elsewhere, it's not just about square metre rates. 'The valuation model becomes more subjective. It's an art, not a formula.' Ms Bakos said high-net-worth buyers were not necessarily swayed by borrowing conditions or market volatility. 'They're not betting the farm, they've got multiple income streams and advisers around them,' she said. 'If it's their dream home, they're picturing what they can create, not necessarily what the bank would lend.' 'These kinds of buyers aren't asking what something's worth to the market. They're asking what it's worth to them.' Kay & Burton Stonnington director Darren Lewenberg said prestige buyers today often have family backing or wealth built over generations, and tend to be more considered in their approach. 'We're seeing well-supported younger buyers from tech, internationally mobile professionals, and family-backed purchasers,' Mr Lewenberg said. 'Stonnington's prestige market has long attracted families with generational wealth, high-income professionals, and increasingly, global buyers seeking security, education, and lifestyle.' 'If anything, today's buyers are more considered, less driven by urgency, more attuned to long-term value.' Mr Lewenberg said even as prices have surged, buyers were not showing signs of compromising on land size or location. 'We aren't seeing widespread compromise in terms of location or land size; the prestige segment remains resilient, underpinned by limited supply and enduring demand.' Asked whether Melbourne's top-tier price levels were sustainable, Mr Lewenberg said financial flexibility and long-term vision remained key. 'At this end of the market, long-term vision and financial agility continue to define success and therefore feel confident in the long term viability and sustainability of the top-end market,' he said.
