The Block is coming to an end and you know what that means — the auction will either make or break the teams’ hearts! They could walk away with piles and piles of cash, or next to nothing. And worryingly, it’s beginning to look like the latter.
While the past few auctions have seen pseudo-celebrity bidders Danny Wallis and Adrian ‘Mr Lambo’ Portelli snap up multiple houses for millions of dollars, the Victorian government has introduced new tax laws to try and discourage people from real estate investment. TBH, that’s a good thing, at least for renters and first-home buyers… but not so good for the contestants.
For those looking to buy one of The Block houses as a holiday home, they’ll need to shell out a short-stay levy of 7.5 per cent from January 1, 2025. Land Tax in the state has also increased from 2.55 per cent to 2.65 per cent if the property is valued at more than $3 million.
Buyers agent Frank Valentic told the Herald Sun that we could see a big change when the auction takes place.
“The looming Airbnb tax and evolving rental legislation could adversely affect The Block properties, adding a layer of complexity for investors reliant on rental income,” he said.
However, he believes that the lower price guides for the properties this year could attract more buyers. This year, all five houses are listed with a guide of $1.7 million to $1.85 million, compared to last year’s houses which were all above $2.2 million.
An ex-contestant told Daily Mail it was a “stitch-up” from producers hoping to create an exciting finale.
“These houses are going to sell for $3 million and that is a ‘stitch up’ for [producers] to have a really exciting finale where everyone this year makes big money,” they claimed.
“There is not a chance this hasn’t been massaged to suit a narrative that works for the show’s format.”
A contestant from 2021 said it means the show will finish with a “happy ending”, which it desperately needs.
“That kind of pressure and drama needs a happy ending and those outcomes are curated by the people who make the show, no doubt about it,” they said.
The Block auction will be taking place on Sunday November 10, so we’ll get to find out who takes the grand prize of $100,000 then.
Lead image: Nine
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