An important lesson in the caprices of the Australian property market…
One week ago, it was reported that Mick Fanning, noted survivor of a Great White attack and three-time world champion, had listed one of his Coolangatta apartment buildings for sale.
Mick, who is forty-one, bought the joint at 213 Boundary Street, Coolangatta, for $3.1 million in 2007 and, last year, turned the old red-brick fifties build into something a little easier on potential buyers’ eyes with soothing vanilla interiors, black faucets, wooden flooring and with breeze-block walls enclosing patios.
There are two three-bedroom apartments, each with its own studio or granny flat, two garages, and the building squats on five-thousand square feet.
Mick also owns the building next door, which he bought for 2005 for $1.39 million and another two doors down, bought for $1.2 million in 2006.
The selling agent described the joint as a “luxurious homestead” and told buyers y’could rent the big apartments out for eight hundred dollars a week and you’d get five hundred for the tiny joints underneath ‘em.
Given the hot property market on the GC, I was thinking high-fours, maybe five mill.
Let’s do a lil maths.
Mick bought in at three-point-one, dropped maybe five hundred on the reno, add in buying and selling costs, and you’d expect a profit of around one to two million bucks.
Not a bad earn, but not spectacular either after thirteen years.
The result? $2.86 mill.
One-forty thou’ less than the 2007 buying price, add in thirteen years of rates, maintenance and whatever else, and, ooowee, y’got a stinker.
The auction started real slow with an opening hit of one-point-five as the auctioneer warned buyers and onlookers that photos and video were banned.
A bit of back and forth and the price stalled at 2.55 mill.
Agent called Mick.
Ten minutes later, auction was back on and at 2.75 mill it hit the reserve.
Then, strategic hits of one and five thousand-dollar bids as two buyers duked it out.
Eventually, $2.826 mill got the place.
Lesson: not all real estate, even in Australia, and especially the notoriously fickle Gold Coast, is destined for great things.
Australia is sustained by foreign investors. At least he survived the Grey.
if he had bought in suffolk park he’d be a billionaire.
Apartments are not in vogue anymore, its masks and vaccines where the real players are at
Obviously not the smartest in bloke in the world, RE 101 Micky boy…. no loose money on investment property! Maybe you’re still paying waaay to much attention to things that are not your concern any longer, such as too many surfers on the tour??
Things that make you go,,,,hmmmm
Because when it really comes down to it, no one really gives a toss about your personal crap.
Something something something something something are easily parted…
This has the feels of the hedgefund guys getting hoodwinked by stimi-bois
I’d like to see this also Seth.. but the government is already backing down. A few cross words from the treasurer aside and they will ultimately yield to shitbook.
Fir which they will be allowed to lean a little on the algorithm and “win” a “miracle election when no one thought it possible”, and for which Scomo will have questions such as “are you the greatest PM since Howard?” asked of him, to which he will smirk and resolutely reply “i don’t write code, mate”.
Bogan apartments at bogan prices.
Will this be enough to buy his undies off stalker bitch? Probs not. Cheers Mick.
As I mentioned earlier, the woman in question appears rather lovely on Facebook, at least via a message stream I saw.
Well, he can always blame Eugene for this unfortunate circumstance.
the curse of the Godzilla cock strikes again!
maybe he has been writing it off on his taxes for years.. as a pro surfer in the states, i bet he could write that off like a hotel room
so.. maybe with all that he did ok
Likely. I don’t really understand negative gearing but I’d say Mick’s accountant does.
If he bought it with a loan, then interest will be deductible. So will the reno. But when he sold it as a loss the other day, that’s not -ve gearing,h e only gets to claim that loss against any profits he might have made elsewhere. Which are probably considerable.
I head a story how the reef rep went up to him once and said hey muck, those sandals of yours paid for my house! To which Mick said yeah they paid for my house too!
Buying crappy units on the Goldie has always been a troublesome time…its not long till a new better one is developed right next to you. And then another etc…..unless you are beachfront. He probably did ok out of this deal as long as his rental yields were reasonable and tax benefits (negative equity) realised……although his funding costs would have been significantly higher back when he brought it. There is a good chance he could have slapped down $500k on this block and borrowed the rest…..then has it all paid off now and he is walking away with $2m net approx. So he might have missed the capital gains but had 4 people pay his apartment bock off for him. And now he will launch into something more speculative or maybe he had to payout his old bride? Surely some journalistic insight / BR readers ideas into why he chose to sell would be more fun.
Thinking of buying
A caravan, can you help
With tax strategy???
And exit strategy.
You make a great financial advisor, for a gunslinger.
I’m very disappointed and feel sorry for Mick. Thought and prayers.
he’s back on the QS, poor bugger.
I think, crowdfunding is in order to plug the shortfall. How much are you willing to toss in?
My entire life savings, which isn’t much, as I’ve frittered away most of my money on Rip Curl boardshorts.
Money is shifting
To remote mountain tops and
Bunkers in the burbs