The Block: Why you should consider investing in 2018
While being amongst the buzz at one of this year’s most anticipated auctions might be one reason you’re dying to attend The Block on auction day, these properties can actually be a fantastic investment in the long term.
We spoke with Jess and Norm’s agent Sam Inan, as well as Emily Adams and Stephanie Evans who are working with David Wood to sell Kerrie and Spence’s apartment, to get their thoughts on what makes properties on The Block such a good investment.
Scarcity can help drive demand in the future
When it comes to the property market, homes in limited supply will always be attractive to the discerning buyer, and the small number of apartments available in the Gatwick will add to this appeal.
Unlike larger developments with 200 or more cookie-cutter apartments, investors have a chance to buy something truly exceptional – The Gatwick itself with each of the apartments different from the next. “Because it’s such a boutique building the apartments are very unique,” says Stephanie. “There’s a scarcity in the market, which indicates that we’ll have growth for years to come.”
The depreciation schedule is alluring
It’s not just a hot property investors are looking for – they need their investment to make financial sense in the long term too.
Sam Inan is sure investors will be particularly impressed by the apartments’ depreciation schedules, with the numbers for most of them thought to be even higher than Josh and Elyse’s total last year of $2,176,698. “With such a new and luxurious build, there are wonderful depreciation benefits attached to the apartments,” he says, noting the enormous amount participants have invested into fixtures and fittings.
While there are many factors that will decide which apartment achieves the highest price, the additional cash flow astute property investors receive from depreciation will assist them when crunching their numbers to make purchase decisions.
The market will keep on calling
These apartments will appeal to both renters and owner-occupiers. “We’ve seen a lot of interest from corporates who travel a lot between cities, as the apartments are fully furnished and come with the latest kitchen appliances,” says Emily. “Often they’re looking for something with a large amount of space that can still feel homely, so it’s likely these apartments will have a thriving rental market.”
It also helps that The Block builds are always in great locations. The Gatwick has easy access to the city with trams running every 8 minutes, multiple world-class dining and shopping options plus some of Melbourne’s most sought-after schools - all of which are high on the shopping list for those in the market.
Developers would never do it
Generally, a developer wouldn’t be able to justify the level of expenditure that goes into the fit-out of a building like The Gatwick and only include six apartments. However, with the backing of Channel Nine these developers get to live out their wildest dreams, so buyers actually get extraordinary value for money.
It’s also worth mentioning that while it’s mostly novice renovators taking the lead on the show, builds on The Block are heavily supervised and scrutinised every step of the way. The attention to compliance on-site is second-to-none, meaning you will feel extraordinarily confident with your investment.
You can catch more of our agents as The Block continues on Channel 9. For more information about the St Kilda property market, you can get in touch with our local hockingstuart office.
View Jess and Norm's apartment: https://www.hockingstuart.com.au/property/301-34-fitzroy-street-st-kilda-vic-3182-162142
View Kerrie and Spence’s apartment: https://www.hockingstuart.com.au/property/102-34-fitzroy-street-st-kilda-vic-3182-161658