The Block super buyer Danny Wallis with show co-host Scott Cam, and another regular bidder on the program, Advantage Property Consulting’s director and buyers advocate Frank Valentic.
The Block’s most prolific bidders are predicting the television show could be facing a “disaster” thanks to the Victorian government heaping increased taxes and tougher rules upon property investors.
Advantage Property Consulting’s director and buyers advocate Frank Valentic has appeared on 16 seasons of the program and bid on about 50 properties on behalf of clients and said that multiple investors who would usually be eyeing a Block house have been put off.
The reason behind their sceptisim is due to Victoria’s land tax changes, which kicked in during January, plus stronger rental sector regulation.
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And IT entrepreneur Danny Wallis, who has spent more than $30m purchasing Block residences, has signalled plans to offload his Melbourne rental homes because of the “killer” land tax.
Most Block seasons have been filmed in Victoria, with the season that premiered this week based in Cowes on Phillip Island and the following season to be set in Daylesford.
Under the state’s new land tax rules, homesowners now pay more tax if their investment or secondary property is worth $50,000 or more, compared to the previous $300,000 threshold.
Generally, for 2024, owners of Victorian properties valued at $3m-plus must pay $31,650 in land tax plus an additional 2.65 per cent of the home’s estimated value above the $3m mark. Most Block properties sell for more than $3m, with a Hampton East home on the show’s last season selling for $5m.
“This could be a disaster for The Block, if investors aren’t around, I know it’s mostly investors who bid on Block properties,” Mr Valentic said.
Mr Valentic said many Block buyers were drawn by the substantial tax deductions that apply to properties from the show, when yearly depreciation is taken into account.
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Danny Wallis purchased 38A Grey St, St Kilda, on the The Block’s 2019 season and sold it for $3.5m last year due to rising land taxes in Victoria.
Frank Valentic (left), Nicole Jacobs (middle right) and Greville Pabst (right) have regularly appeared on The Block.
Multi-millionaire Victorian entrepreneur Danny Wallis is familiar to viewers of The Block for regularly bidding on the show’s homes. Picture: Jake Nowakowski.
“What really attracts people to The Block is the depreciation of about $150,000 per year, but if that is all chewed up by land tax and other costs, it’s not a good return any more,” Mr Valentic said.
The land tax changes have led to Mr Valentic’s decision to sell one of his own investment properties, a three-bedroom villa at 3/19 Pitt St, Mornington, with a $600,000-$650,000 asking price.
Fosterfroling director Adrian Foster has the listing.
Mr Valentic is also planning to sell another five to six long-term rentals in Greater Melbourne.
“I think my land tax is now 400 per cent higher than it was three to four years ago,” he said.
A state government proposal that would require landlords to upgrade their properties’ energy efficiency standards, which he estimated could cost some investors $12,000 to implement, was another reason for landlords exiting Victoria, he added.
Frank Valentic is selling his investment property at 3/19 Pitt St, Mornington, due to Victoria’s increased land tax.
The renovated home features hardwood floors, a brand-new kitchen, two study nooks and a north-facing courtyard.
And Danny Wallis told The Herald Sun that his land tax bill had more than doubled to hit $1m+ this year.
“It’s very fair to sat I’m fed up with it,” Mr Wallis said.
“The land tax is just a killer.”
However, he has not ruled out buying any more Block properties altogether, just ones in Melbourne.
In April, Block serial bidder Adrian Portelli lost $1.055m after he sold a house at 22 Charming St, Hampton East, for less than the $4.3m he spent on it during the show’s 2023 run.
The house at 207 McGeorge Rd, Gisborne, renovated by The Block host Scott Cam on the show’s 2022 season, has been on the market for more than 280 days. It has a $4.1m-$4.3m asking range.
Contestants Steph and Gian with Adrian Portelli, who bought – and subsequently sold – the Hampton East house the couple renovated on The Block 2023. Picture: Supplied.
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