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 Realestate.com.au, 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.
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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.
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