The 7 must-know numbers of the week, starting with Brad and Lara's The Block winnings
The amount The Block 2012 winners Brad and Lara take home following the conclusion of the reality show. This includes $506,000 above the reserve for their $1.62 million terrace sale, plus $100,000 in prize money. The bidding enthusiasm knocked the five local buyers' agents out of contention.
Karin Mackay of Australian Property Buyers said the bidding across all four terraces "blew everyone out of the water with the prices they achieved."
She had authority to purchase two terraces armed with two deposit cheques for if she was successful.
"I know the area extremely well and had the resources to evaluate their worth," she told Property Observer. "Based on historical sales I believed they were worth between $1.12 million to $1.2 million for 401, 403 and 407 and Brad & Lara's 405 up to $1.3 million."
She had expected that 401,403 and 407 would have had a $1 million reserves and 405 a $1.2 million reserve. Mackay suggests even though they were fully furnished she doesn't believe there was "that great a value for an investor".
"Lovely for depreciation and renting them out fully furnished, however I saw a risk value issue if the investor found themselves in financial trouble a year or two down the track. The furniture wouldn’t be worth anything and the investor may have lost money on the sale price. When buying for investors in particular I always evaluate the risk value. These terraces stacked up extremely well for my investor client and would have been positively geared if we had bought at the market value."
Mackay suggests the bidding enthusiasm was "amazing ... people were there to buy and it showed in the bidding."
Mackay's takeout impressions were that it was important for home owners not to over capitalise "unless you are going to live in it for at least 10 years"/ "Location, location, location sells, especially if you have created a wow factor by hiring furniture – furniture sells the property. You don’t need to sell the furniture with the property. For the investor the newer the better when you are in the 47.5% tax bracket. These were positively geared if we had bought at the market price and rented fully furnished. If I had gone higher they still wouldn’t have cost the investor very much out of his own pocket, however I also chase capital growth and if I had gone any higher he wouldn’t have enjoyed any capital growth for three or more years in this market," she concludes.
The amount that Nip/Tuck star Julian McMahon and his two sisters, Melinda and Deborah, will split following the sale of their mother Lady (Sonia) McMahon's former Bellevue Hill home.
The number of off-the-plan sales the Crown Group secured for its V project in Parramatta last weekend as buyers rushed to secure the NSW home builders' bonus stamp duty exemption on its last day.
The number of Sydney suburbs that think-tank the McKell Institute says are “ripe for a terrace revolution” but for “narrow-minded, self-interested individuals” protesting against redevelopment.
The cash rate, after the RBA left rates on hold at its Tuesday meeting.
The number of small-time investors who have money invested in fund manager and non-bank lender Provident Capital Limited, which went into receivership this week.
The percentage of Gen Y borrowers who expect to have to ask their parents to help them buy their first home, according to the 2012 National Savings and Debt Barometer compiled by RaboDirect. This is down from 35% in 2011.
