Rick Otton’s Bondi property at 69 Roscoe Street.
He launched the company We Buy Houses, but disgraced property spruiker Rick Otton is now selling his Bondi Beach semi, after receiving an eye-watering $18 million fine for misleading investors with his get rich with real estate system.
Earlier this month, Mr Otton was slapped with the biggest ever penalty put down by the Federal Court for breaching the Australian Consumer Law.
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Infamous property spruiker Rick Otton. Source: Youtube
If the sale of his renovated four-bedroom house at 69 Roscoe St fetches the asking price of $3.2 million-$3.5 million, it should make Mr Otton a pretty profit of more than $1.5 million. He settled on the home in October 2007 for $1.6 million, according to CoreLogic data.
However, that sum is a drop in the ocean when it comes to the controversial businessman’s pilling bills.
Inside the stylish living room.
A huge slice of that $18 million retribution is the $12 million fine against We Buy Houses, but the author of How To Buy A House For $1 was personally fined $6 million, and is now banned from managing an Australian company for at least a decade.
For almost 15 yearsm Mr Otton spruiked real estate investment strategies through seminars, “boot camps” and mentoring programs that earned him approximately $20 million in revenue.
Attendees of the seminars were sold the idea they could buy a house for $1 without so much as a deposit, mortgage or any property experience.
The modern kitchen.
Inside one of the home’s bedroom.
The program also taught followers that they would generate passive income streams through bricks and mortar and therefore quit their jobs and build a property portfolio.
The Australian Competition and Consumer Commission began proceedings against Mr Otton in 2015 following a joint investigation with NSW Fair Trading.
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House auction a hive of activity
The spacious bathroom.
Looks like a nice spot to relax.
A November 15 statement issued by ACCC chair Rod Sims said; “We Buy Houses and Mr Otton peddled false hope to people simply looking to get a foothold in the housing market or invest money in real estate for their future.”
The beachside home of Mr Otton is set to go under the hammer on December 15 through Di Baker, of Di Baker Prestige Properties.
Less than 500m to Australia’s most famous beach and on the same street the first season of The Block was filmed, the classic semi on 291 sqm has high ceilings with skylights, floorboards, a “chef’s” kitchen with a 4m marble dining bench, an outdoor room for all weather entertaining, a loft retreat and off street parking.
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