No matter what it looks like on The Block, property investment is not glamorous
“It’s on! 7 O’Block weeknights!’ is what is being shouted at us everywhere in the media lately – bus shelters, TV ads, radio, magazines, online banners, etc, all working in unison to present to Australia the rollercoaster adventure that is DIY renovation, in the form of a competitive reality TV program. Yes folks, The Block, the hugely successful Nine Network TV series, now in its 10th year, is back, and as always, “bigger than ever”. As a full-time media industry professional myself, though, it prompted me to have a think about how much the mainstream media presents property investment and renovation-for-profit strategies as entertainment. So I felt it necessary to share with the community the reality of these “reality” shows as being what they are: very, well, unrealistic!
Let me first start by affirming one thing: I really enjoy The Block and shows similar to it; they are great entertainment programs, and I do enjoy the thrill of watching them. You know, identifying my favourite (and of course, least favourite!) contenders in the beginning, then following them through the series and seeing how far they get. As a professional property investor, however, I treat these shows as just that: entertainment. Professional investors understand that these shows glamorise the industry, and we know that the industry reality is nothing like what these shows present to us.
To be honest I really believe that most of the Australian public understand this as well. Yet there are still some perceptions that property investment is “not as hard as they make it out to be”, and this is the most concerning part. Not because I think that these people will fail if they try, I just think that when they hit that first wall or that first (of many) “no” answers, they’ll give up, because “on TV they didn’t have these kind of problems; I must be doing it wrong”. It is the opportunist in me that thinks sometimes, “If I had the cash and more TV industry clout, I’d propose my own idea for a property investment show to the studios!”
But then I think that my show would probably not be very entertaining, and it is entertainment that sells. It is sensationalist headlines that get viewers. No, my show would be pretty boring actually. It would just involve scene after scene of someone sitting at an office desk using Google for many days, weeks, months on end, and maybe also a notepad, calculator, and a phone call or two (just to spice things up). Because, that’s what you’re doing 90% of the time as an investor: number-crunching, cost analysis, Google searches for information, and calls, calls, calls and emails, emails, emails. The other 10% is the stuff that they show on the televisions shows – the shopping around, inspecting places, maybe buying some curtain fabric and granite benchtops and touring apartments and houses. Sounds like fun, huh? Well, by the way, it’s not likely that these property tours would include the terraces of Toorak, or the penthouses of Potts Point. It’s more likely you’d be looking at the old apartments of Arncliffe, and the duplexes of Dandenong. Not exactly captivating TV viewing, is it?
Comparatively more sinister than the entertainment format though, is the sensationalist mainstream media. You know the most guilty of guilty suspects to which I refer to here: Today Tonight, A Current Affair, and (increasingly more recently) the 7pm show on Network Ten. These programs are all about presenting the flavour of the month when it comes to property, and yes, that generally involves taking whatever alarmist/sensationalist news headline they can find, then knocking up the “drama” of it a couple more notches, and presenting that point of view as “investigative journalism”.
I’d actually feel more comfortable if these pre-made (and often shelved until they require a “time-filler: on a light news day) sensationalist stories quoted zero credible sources/statistics/accrued trending data. That way, I’d feel hopeful that the greater Australian population wouldn’t buy into these “property stories”. But unfortunately, they usually end up finding just one perspective/source (which often is merely one individual’s conversational opinion with no hard data to back it up) and run with this perspective (providing it is the most extreme perspective available, that is). Usually they pick the most dramatic or condemning perspective and present that as “just how the property market is”. Worse still, these stories are interweaved and mixed with the “dodgy plumber” template; whereby there must always be a ‘bad guy’ being chased down a hallway with a shoulder-mounted camera.
So where should one turn to turn for video content about the investment property “game” that is more constructive, trustworthy, and reliable? I’ve made a list of great sources of video content that I’d recommend. Sure, some aren’t so “entertaining: (read: they drone on a bit), and others aren’t even from Australia, but I think if you like information provided in a video format, here are some great sources:
1) YouTube. Specifically, mini-series, or “vignettes” as they call them (usually a three- to five-minute snippet of video, as part of a five- to 10-part series). Some great names to Google are Australian Property Investment magazine’s Nhan Nguyen, who has a great series. Also Michael Yardney and Lousie Bedford did a series together that offers some great insights. Other names to help get you started would be Margaret Lomas (In Her Shoes series), and Catherine Cashmore and Peter Bozinoski from Property Observer.
2) Get your property industry news from online industry news niche sites. This one just makes sense. Sure, some of the biggest news websites such as NineMSN, SMH/Age, News.com.au etc have property sections, but these sections are really quite generalist and don’t cater as much to the investor mindset. Instead, go to specialist websites like Australian Property Investor magazine online, Your Investment Property magazine online, Property Observer, and even Domain.com.au and Realestate.com.au. You’ll find video content that is specific to investment context within these.
3) Blog communities are also an excellent source for opinion. Sure, they are merely conjecture and the amalgamation/debate of many individuals (most usually with quite strong opinions!), but these communities are, more often than not, made up of the kind of person who, well, if you’re an aspirational investor, would want to be and emulate. Plus, the ones worth their salt (like me) will always present things as their opinion, or their own commentary, on what is trending in the market. They will never try to claim their opinion is an elaborate intensive study (unless of course they are willing to do the due diligence of research and hard data), so their opinions can usually be well-considered if many individuals in these communities all concur on similar topics.
4) There are indeed some TV programs that are not all bad. The UK’s Property Ladder, hosted by Sarah Beeney, is excellent because it shows the due diligence that renovators apply before selecting a property, details the works and itemised costs, the selling process, and then actual profit margins and time/energy taken. Selling Houses Australia also has some great episodes, though it does conform to a more entertainment format. And last of all, regular segments in various reputable news program sources (Sky News Business has some great regular reporters with segments, as does ABC and SBS more infrequently). Even the commercial networks offer programs with some property insight sections, such as Network Ten’s The Circle.
5) Also emerging in the investment property media space are webinars. Whilst not strictly “video” driven, they are quite interactive and visual, and on the rise in Australian media property sites. Worth a look.
Regardless of whether your investment strategy is buy-and-hold, renovate-for-profit (aka “flipping” a property, then moving on to the next one), renovate-and-hold, owner-occupy-and-invest, or even rent-and-invest; at the end of the day, you are an investor. And a darned capable one at that. So get out there, keep an ear to the wall and a foot in the door (so to speak, of course), and consume media made with investor in mind, not just owner-occupiers. Find strength in others around you in the community – these are your comrades. And, after a hard day’s’ work, don’t forget to switch on to your favourite renovation entertainment program to relax.
Cameron McEvoy is a property investor and maintains a blog, Property Spectator.