Profit is figure that matters

Team Yellow won in the end. Amy and Stu’s efforts on the show excited buyers in the auction room and viewers at home.

The sale price of $1,009,500 for their house, 27 Frances Bryer Rd in Hobsonville Point, was the highest.

But in flipping houses, the dollar figure that matters is the profit. Amy and Stu made $69,500 — $12,500 above next-placed Ben and Tom. Remember that when you look at The Block auction results. The sale prices do somewhat reflect what’s going on in the wider Auckland market, but can be misleading if read wrong.

The sale prices were in line with median values in Hobsonville Point, where the average three-bedroom town house sits just below the $1 million mark.

It’s two years since market peak in Auckland, so we were always unlikely to see the eye-watering figures that rocked the season 5 live final, when the winner sold for $1.61m and made a $380,000 profit.

This year’s profits seemed about right for houses done up by amateurs and brought to market in under four months. Yes, they were up on season 6, where the profit on the winning house was just $31,000, but well down on seasons 1-5.

These days, flippers who want to reap bigger profits will need to resist the urge to sell as soon as the last lick of paint on their do-up has dried. Hang in until the next up cycle and get some good capital growth under the belt.