Before he died, Nathan Day told his murderer they didn't have the guts to kill him.
The 35-year-old's throat was cut days later and his body buried in a shallow grave at Wangaratta, in northeast Victoria.
It was six weeks before he was found.
Darcy McNamara has admitted murdering Mr Day in July 2018.
The 44-year-old killer said he drank tequila and red wine before "jumping" his sometimes friend, sometimes enemy.
Days beforehand, the pair were seen fighting in the street.
McNamara accused Mr Day of stealing his TV, punched him and threatened to kill him.
Mr Day replied McNamara didn't have the guts.
They had a history of animosity. Mr Day had been charged with smashing McNamara's windows the previous December.
McNamara's social worker visited him on the day of the murder, and he appeared intoxicated, paranoid and convinced people were coming to get him.
That night, screams of "I'm going to kill you" and "you're nothing but (a) dog" were heard coming from the unit.
Mr Day was later reported missing and his body found in a shallow grave covered by debris in McNamara's yard.
The killer told police he'd lost it after Mr Day turned up at his home.
Lawyer Jarrod Williams told Victoria's Supreme Court on Friday McNamara had an extremely tragic background.
His upbringing had been awash with alcohol and violence, and his father took his own life when McNamara was about nine years old.
His Aboriginal heritage was considered a "family secret" because of stigma around his mother's interracial marriage.
McNamara spent most of his adult life unemployed and living on the margins of society, also racking up a criminal history in both Victoria and NSW.
He's spent the last two years in custody and will be sentenced at a later date.
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