The latest Block Richmond cottage offering: He Said/She Said

Another of the Richmond cottages from the 2011 series of the Channel 9 renovation show, The Block has come onto the market. It's the renovated three bedroom terrace of Rod and Tania.

Our contrarian property commentary couple, Jonathan Chancellor and Margie Blok look at the merits of buying 43 Cameron Street, Banstead Cottage.

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HE SAID: CAUTIONjc-silhouette-5

It will be interesting to see how this listing performs as while there's been nice recent strong price growth just three along, this one looks a bit trickier to gauge.  

It was only a few weeks ago the dearest home in the 2011 Block Richmond renovation series resold for the first time. 

It was the three bedroom 37 Cameron Street Richmond cottage renovated by Josh and Jenna who had a $950,000 Block 2011 auction reserve.

Their Edwardian cottage sold under the television bright lights for $1 million. Its recent auction price guidance was $1 million plus. And it fetched $1,147,500.

Rod and Tania's auction reserve was $850,000, and while it didn't sell on the day, the couple's handiwork secured an ensuing $922,000 sale at an impromptu Jellis Craig onsite auction attended by six parties.

Just one of the interested parties had been at the auction, with the other five having only seen the property passed in on television. I called it an auction frenzy.

It's now been listed by a Melbourne investment couple.

The current marketing for 43 Cameron Street has the price estimate as $900,000 plus. 

RP Data suggests the median Richmond house price sits at $773,000 which is down on the $800,000 median around the time of the 2011 auction, so best any interested parties don't get carried away in a mix of Block afterglow and Melbourne's current price spike. 

mb-silhouette-4SHE SAID: CAUTION

Ignore all the fun the hit television series generated and just figure out its fundamentals.

Especially if you are an investor because the rental returns have been diminishing over the past two years.

Indeed the neighbouring cottage recently became available for rent again and the investor was set to get even less return on the initial $860,000 outlay. It was Katrina and Amie's house at 41 Cameron Street which was listed at $950 a week shortly after the big 2011 auction and then next became available for lease at $895 a week. 

The indicative gross rental yield for Richmond houses is an ordinary 3.8%, according to RP Data.

Another Block cottage was offered - at 39 Cameron Street - with a weekly $1,250 asking rent after the 2011 auction and then a year later at $1,000 a week.

Ofcourse there are good tax depreciation prospects, but be sure to get a building inspection report before its October 26 auction.

And don't forget to check out the impact of the Coles Property Group's 11 storey redevelopment of Richmond Plaza - it includes the carpark just across the road from the front facade of Banstead Cottage.

Nothing much in the metropolitan press since it was first mooted after the television series in late 2011, but I see the VCAT approval came through not so long ago for the 12,840 square metre site.  

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