Real-life property lessons from The Block, Hot Property and other reality shows: Cameron McEvoy
Although most of us are back at work already, some lucky readers out there may still be on annual leave. During my short break I was able to catch up on some of my favourite property-themed TV entertainment programs from around the world.
I have ranked my top six favourite programs that I think are the most information-rich programs, starting at number six. By no means is this an exhaustive list; there are more shows out there that I’ve not mentioned, but I feel the ones mentioned below are the most useful and accessible for investors.
Coming from a media background myself, I’m always keeping my eyes and ears open for new media and programs that have a property focus. It is important to note upfront is that the bulk of these shows are produced squarely as entertainment first and education second. That said, I’ve been able to extract value out of all of the programs below and take away some great lessons that have helped me in my investment life.
Number 6 – Hot Property (Australia)
Concept/Synopsis: Actor and famous Australian icon Michael Caton hosts a program focused on the negotiation process between property buyers, sellers and renovators. The episodes feature an auction in every episode, as well as private sales.
Why it is entertaining: This program is a little bit “loose”. The structure tends to change from episode to episode, with some focusing mostly on the stressful auction process (which plays out like a soap opera thanks to some clever editing and the addition of some emotional musical curves), with others focusing on the families of first-time property buyers.
Why I like it: This show is very much ‘entertainment first, facts second’ in its priorities, however it does give great insight into the objectives and motivations of both buyers and sellers, all emotionally invested in the same property. It is also an excellent exposure to the auction process and the unexpected things that can occur. For those who are too time-poor to get first hand auction witnessing experiencing, this show is great.
Areas to be weary of: Being hosted by an actor and not a property expert (the actor was chosen because he is famous for starring in films focused around the emotional importance of property ownership), the show lacks the much-needed stats, numbers and return on investment summaries that other programs usually provide, making it a little bit vague.
Number 5 – The Block (Australia)
Concept/Synopsis: Running for over 10 years in Australia, this is a reality entertainment program focused on four competing couples renovating stripped-down properties, often located in a blue-chip/prestige urban suburb. The contestants then must complete one room renovation per. At the conclusion, all properties are sold at an auction, with the couple with the highest profit declared the winners.
Why it is entertaining: The ‘mad rush till the last minute’ nature of the program really adds heightened emotion, and some excellent editing makes the program very entertaining for this reason. The contestant couples are selected carefully, and most are enjoyable to watch over a season of the program.
Why I like it: From an investment perspective, I actually enjoy the program more for the things it teaches me not to do as opposed for the tools it may teach me to do. The most glaringly obvious mistake most contestants make is when they overcapitalise on their renovations. But then, these renovations are not being made as part of a buy and hold strategy, these high-end renos are designed for ‘wow factor’ to appeal to the top-end owner-occupier would-be purchaser!
Areas to be weary of: In most years of its run, The Block had selected the city/suburb that was in a rising market at the time of planning, meaning that about six months later, when renovations were complete and the apartments were auctioned off for sale, the profit margins made were regarded as “awesome”. The program editing would have you believe that all profits were attributed purely to the efforts of the contestants in renovating them.
Where you can access it: The Block runs almost annually, and is coming up to its 2013 season premiere. It’ll be on during most weekends on the Channel 9 network. Previous seasons have been made available for purchase on DVD from specialty outlets and JB Hi-Fi/department stores. The next series returns to Channel 9 Monday, February 4.
Number 4 – The Barefoot Investor (Australia)
Concept/Synopsis: This is not a program about property investment specifically. Instead, it is focused around all kinds of investment classes – ranging from property to shares to managed funds to some more obscure investment classes. Host Scott Pape is a known investment expert and appears in numerous magazines and newspaper columns, along with regular appearances on TV and radio in Australia.
Why it is entertaining: The show’s approach is light and accessible enough, and with a wide variety of asset classes covered, makes for interesting repeat viewing because the content is so different with each episode. Scott’s approach is quite humorous and his youthful nature makes the show entertaining.
Why I like it: As a younger investor myself, I find this program more relatable than some of the others in this list. While it is great to hear from more mature, seasoned, and successful investors on what worked for them, it is great to watch a program that provides a focus to younger investors and ways to help them achieve their goals. When Scott does cover the property asset class in several segments, his advice for younger/aspiring investors is always sound and logical.
Areas to be weary of: The show sometimes travels off-topic, exploring things topics like love, travel, and life hobbies. Scott does skew these back into some kind of investment focus or strategy.
Where you can access it: The Barefoot Investor website offers some viewing of episodes, while others have been uploaded in full to dedicated channels on YouTube. The program airs infrequently also on Channel 10 on free to air television.
Number 3 – Flip Men (USA)
Concept/Synopsis: Business partners Mike Baird and Doug Clark, along with their crew of helpers, simultaneously buy, renovate, and sell – in other words ‘flip’ – multiple properties at any given time, focused predominantly on one market – Salt Lake City, Utah. Results vary from astonishing successes to projects of several months’ duration that result in loss rather than profit.
Why it is entertaining: As they often enter ‘high-risk’ neighbourhoods and buy properties ‘site unseen’ at auction, it is entertaining to watch the boys enter properties that they’ve already bought. There can be anything inside them – sometimes squatters, junkies, and gangs inhabit them, other times they discover drug labs were present, while sometimes they uncover profit-killers such as unforseen plumbing issues, entirely missing kitchens, or bizarre objects left behind by previous tenants.
Why I like it: It is entertaining, sure, but I respect an onscreen property team who allow cameras in to their everyday flipping world, warts and all, and are not afraid to show their audience their failures as well as their successes. I also have an interest in the US property market, so the program is a great educator to highlight just how much risk the US market offers Australian investors.
Areas to be weary of: Like many US reality programs involving auctioning, bidding, or improving something for profit, the 22-minute episodes firmly focus on the glamorous elements and unfortunately rarely present the hard work done, due diligence investigated, and the fact that the two business partners have an entire team/entourage working behind them. This team is what allows the duo to effectively be flipping around 10 properties at any time!What you can actually learn from it and use in your property investment life: These two are very efficient at what they do, thanks to years of experience and their concentration on just one market (which they know inside out). Australia’s closest celebrity flipper would be Cherie Barber of Renovating for Profit, who runs workshops to teach others how to flip. The biggest two learnings I took away from this show is that 1) It gives you a feel for the multitude of problems you can face by entering a high-risk market with the intention of flipping and on-selling to family buyers; and 2) It gives you a good understanding of how important it is to buy the right 'type' of property in the market you are investing, relevant to the demographic of that area.
Where you can access it: It airs randomly on digital free to air (7Mate channel mostly), and on Foxtel’s A&E channel. Episodes can also be viewed online for free via international streaming sources, or as paid HD downloads via iTunes or Amazon Store.
Number 2– Selling Houses Australia (Australia)
Concept/Synopsis: Ex-real estate sales agent and property expert of over 20 years Andrew Winter makes the move from the UK to the Australian market. In each episode, Andrew, along with his gardener Charlie and interior designer Shaynna, enters a struggling vendor’s property to help get their house sold that has otherwise sat on the market for way too long.
Why it is entertaining: Andrew has a relaxed demeanor but also a charming way of allowing his ‘vendors’ to come to realise the mistakes they’ve been making and how these attribute to a poor sales interest by the market. Vendors in almost every episode will throw out all kinds of humorous excuses for why they have not made the effort to make their property stand out from the crowd. Andrew also interrogates the selling agent responsible for each of these properties in a similarly humorous way.
Why I like it: It seems strange that I should enjoy a program focused purely on selling property, when I’m very much in the acquisition stage of my property investing career. That said, I find the insight into the pre-sales preparation phase very helpful,; both as a buyer of properties and also as a consumer of sales strategies and techniques, for that time later in life when I’ll be looking to offload some portfolio properties. Also, each episode is 45 minutes and concentrates on just one house/sale, allowing a more in-depth insight into each one.
Areas to be weary of: There is a lack of investor perspective to the program. Every house is always an owner-occupied family home never an investor. This means the program focuses on the emotional attachment that owner-occupiers feel to their home, rather than the business and non-emotional approach that an investor would bring. Also, it is purely focused on houses, with no unit sales being covered by the program.
What you can actually learn from it and use in your property investment life: The program is a big help for those looking to sell an investment property. It highlights techniques to make minor cosmetic changes leading up to a sale, along with how to ‘dress’ the premises for inspections, as well as techniques in selecting and appointing a proven and successful sales agent for the sale process. It also exposes us to the emotional connection that owner-occupiers have with their homes, an important element considering we may one day be marketing/selling our investment properties to owner-occupiers and not other investors.
Where you can access it: The show has recorded many seasons, and airs random episodes on Foxtel’s LifeStyle channel nationally. For those without Foxtel, most seasons are available on DVD from specialist outlets along with JB Hi-Fi.
Number 1– Property Ladder With Sarah Beeney (UK)
Concept/Synopsis: UK property expert Sarah Beeney focuses on just one to two properties per hour-long episode and chronicles the journeys of the risk-taker renovators who aim to flip these properties for profit, regardless of the market conditions the UK may be experiencing at the time.
Why it is entertaining: Sarah is very knowledgeable about property investment, renovation and selling knowledge. Watching amateur flippers openly ignore or go against her trusted advice, resulting in dire re-sale or rental rates after completion, can be entertaining and educational. It also uses humour to highlight the challenge that renovation presents, well before even so much as a nail is removed from a property.
Why I like it: Yes, my no. 1 program for Australian investors is from the UK! I like it so much because it really is focused entirely on first-time investors and the chronicling of their cosmetic and structural renovations, all the way through to the return on investment delivered back to them. Each project or guest is actually visited by Sarah several months later, as a recap, providing an extra insight that few other programs carry all the way through. Furthermore, each episode gives so many dedicated bullet-point screens of tips and tricks that I get so much value out of every episode I watch.
Areas to be weary of: This is a UK program so we must be mindful that the drivers and desires of would be tenants and owner-occupiers there can be much different to those of Australian would-be renters and owners, so these needs do not always translate. Also, while the program has been going for 10 years, many of the results recorded and the projects focused on have occurred in a rising market, making the true dollar (or pound, I should say) value of the profits difficult to ascertain.
What you can actually learn from it and use in your property investment life: If you can get your hands on this show, you’ll take away something from just about every episode. Tasks such as understanding your suburb/market, your target inhabitant, and council due progress and restriction are covered. It also demonstrates the more conventional ‘trials and tribulations of renovating property’ wisdom. The follow-up section at the end, along with detailed summaries of blown budgets and lacklustre profits, can also serve as a sobering reality check for those with the ‘romantic’ dream of property renovation.
Where you can access it: For Australians this show is very difficult to access. Apart from the airing of occasional episodes on Foxtel’s LifeStyle channel, it does not air here on free to air television, nor has it been released on DVD in Australian region 4 coding. Even finding a UK supplier online to buy from is tough. The other program is that although there has been over 10 seasons, not all seem to have been put on DVD in the UK in the first place.
Cameron McEvoy is a NSW-based property investor and maintains a blog, Property Spectator.
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