The Block 2011 – What a fantastic result for Channel Nine

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What a fantastic series for Channel Nine and the production company Watercress Productions. If you read the
“Results” and assume that channel Nine have done badly because all the properties did not sell, then think again. It is common knowledge that Channel Nine paid about $3.6M for the site. This was not overpaying as the best use of this site for the average purchaser would have been to complete the development of units for which the plans & permits were already in place.

That was until Watercress Productions came along. They had a better use for the land. And a unique way to make a lot more money than development. How much money do you think Channel Nine made out of the ratings Behemoth – THE BLOCK. Selling advertising space to McDonalds, Microsoft, Toyota, E&S Trading etc etc.

The choice of properties and their location was sensational for the production company and their choice of South Melbourne for their next season is also very good. Not for making money on the property! But to produce a Television ratings giant.

Are these the best properties to purchase in Richmond? Of course not! They are in a street with an industrial feel, opposite a Safeway car park in the shadow of the huge housing commission towers. Three of the homes are single fronted with a single master bedroom upstairs. This means young couples contemplating a small family are out. The master needs to be on the same level as the bedroom you are putting your newborn. The double fronted cannot realise its true potential of over $1M because there is no car parking. But these properties will still sell, and the majority of the cost of the property will be recouped.

As far as Consumer Affairs investigating the agents for “underquoting” goes; If the agents did not know the reserve prior to their quoting then they actually were extremely accurate with their estimations. All the reserves were within their original quoting ranges. The properties performed almost exactly as we had predicted. The surprise was actually that Polly and Waz’s house performed as well as it did.

It was a little disappointing for the contestants that we have grown reasonably fond of, and perhaps the production house may need to look at a different way to compensate the contestants next time. Perhaps some more prizes along the way or a prize when they meet reserve and then bonuses thereafter.

Overall, this was a great series, that was extremely entertaining television and I look forward to the next series.

Ian James

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.

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