Boothy Bites - Your Property Update with Dom Nesci from Wealthi

This episode was originally published on our YouTube channel, dated October 7, 2021.
Links: https://youtu.be/YrnBLgC8UE4 and https://youtu.be/DfkJJo5mrNg

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Transcript:

Chris Booth
Hello, everyone. This is Chris Booth. These by some color coding the phrase, but we've got Dom Nesci from Wealthi on. How are you doing today?

Dom Nesci
All right, So am I taking a bite out of Boothy today?

Chris Booth
Well, you can. It's a little bite. Don't take too many bites. There's not that much left of me, you know?

Dom Nesci
And it's all for Kelly.

Chris Booth
Beautiful. Beautiful. Yeah. Okay, well, that's a different conversation today. Now, just noticed someone's stolen your bird. I don't know. Is your mom behind in them doing a few things? Is she going to be a guest presented today?

Dom Nesci
No, She's actually hidden the bird inside the pantry now, so a mighty muffled noise of her squeezing it. Stay.

Chris Booth
Whoa. Now, Bird, Violet's on this show. Now, Booth is bites. Anyway, we'll cut to the chase. So you and I have been talking a little bit just of late about the property market and some of the things that are happening. But, you know, you're a man on the ground, and I really respect your opinion. So, you know, wealthy is doing a lot of things right now.

Chris Booth
Can you walk us through some of the the you know, the conversations and the areas that you're looking at from a wealthy perspective? So.

Dom Nesci
Yes, if you want me to share my screen, make me the host and I can show you a whole bunch of stuff because there's a whole heap of things that we could go through before before jumping on here. I was actually just about to shoot like a market synopsis, which I do very regularly, and I like to talk about the data that we're seeing that comes from reputable sources.

Dom Nesci
So what I'll do is share my screen and show you a few key things. Um, let's see what browsers I got open. Okay, these are all safe. Okay, So let's, let's, let's start with a few key things. Now, what I wanted to point to here really is how the market is performing. And one of the key places you can go to is the Australian Bureau of Statistics.

Dom Nesci
These guys report on everything, the report on inflation. They report on the types of loans that they get written all the time. So this is pretty interesting. Now what I noticed here is that Australia is performing exceptionally well over this last quarter. It rose by 6.7% and over the last 12 months, 16.8%. So, you know, I'd like to say that we're geniuses for the investments that we've got our clients up by 12 months ago.

Dom Nesci
But if you had bought a piece of real estate, largely you would have made, you know, nearly 70% on that investment. So let's put that into context. If you bought a half a million dollar investment times 1.16 a, you know, you would have made $84,000. And what the reason why I point that out is, you know, all you get for sitting on the fence is splinters.

Dom Nesci
And I really feel that the market is going to continue to perform. And I wouldn't be surprised if we do see double digit growth over the next 12 months. So if you're going to take one thing out of this video, it's that you should go buy some real estate If you can afford it, do it safely.

Chris Booth
Now, just jump in there quickly. I think importantly, look, anyone who wants to better understand the value of their property today just reach out to us and we can get an up to date sort of appraisal of your property and see what equity is truly available in your property. From a a conservative sort of our fee data or CoreLogic or even an online bank valuation as well.

Chris Booth
Yeah.

Dom Nesci
That is such a that's a great point because what we saw last month is that there's 100% more investors in the market compared to last, and that is a lot of people taking equity out of their property. So what you're pointing out there, if you've got a property and you've got an equity, now's the time to go pull it out, refinance your loan, get a shop right and go buy another investment.

Dom Nesci
So I'll move on from that. This is another interesting piece of data that I like paying attention to, and it's about the movement of bodies where people are going to. And one thing that stands out is that Australia's population basically didn't change. Largely, Australia is a dependent upon migration and we've missed out on about, you know, 200,000 people per annum.

Dom Nesci
Here we are. So normally we get between 200 to 300000 people per annum and these people typically land in Sydney, Melbourne and Brisbane after that. But what we've seen is because there's been no migration, some really interesting statistics. One New South Wales group that's that's pretty normal. Victoria had a huge loss of people, 42,000, 80, 43,000 people escaped Victoria because they were most heavily impacted by COVID.

Dom Nesci
Everyone just wanted to run out of state or what we can see. He actually went back home. So from overseas they went back home. But one interesting statistic is that Queensland actually received 44,000 people. Now, we believe that the vast majority of these people are chasing the sun and better priced property and a better quality of life. And this statistic I think could be one of the main reasons why we're seeing huge numbers or huge changes in the Brisbane market.

Dom Nesci
So now what I'm going to chat to you about here is CoreLogic is one of the most reputable sources of data that you can find for property. And what they say here is one, the annual number of dwelling sales is at record highs. Now the annual number of record sales is the amount of amount of transactions, amount of property.

Dom Nesci
That's changing hands. And there's a huge a number of properties changing hands in Brisbane. So in Queensland in particular, where you've seen that a ten year average, it's 50% higher than the ten year average and that's being reflected in the property prices is a lot of demand in Brisbane at the moment. So for people that are looking to buy property in Brisbane, you've noticed that it's very difficult to get your hands on stock.

Dom Nesci
So if you are looking to buy real estate in Brisbane, you need to act very, very quickly, whereas you can have a look at some other markets, the moving much, much slower and to me they look like opportunities.

Chris Booth
Yeah, definitely. Well that's a lot of interesting numbers and you can pretty much get this information. So because Australian Bureau of Statistics we've got call logic there, which I know there's a lot of free research there as well. Um, yeah, to look at some ideas around investing then Tom, would you have any sense, anything sort of been in mind and sort of give us a, you know, an overview of why that area and then sort of why that property from a wealthy perspective?

Chris Booth
Yeah.

Dom Nesci
Yeah. So for all of our clients that work with us, they know that we primarily work across the Australian Eastern seaboard and we take a lot of time, diligence and care to list what we believe are the best properties in Australia for investment purposes. And we, we, we try to buy a or get our hands on a cross-section of investments that range from apartments, townhouses, houses and even some sort of industrial or more sophisticated, sophisticated commercial real estate.

Dom Nesci
Now some of the stuff you can find it on market, some of it we have it exclusively now. I think that there are this one this deal here I think is pretty exciting. It's a joint estate we have there are six townhouses that are currently available in that market. They are about 540 to $600000. They are a dual contract or split contract where you've got to buy the land and build it.

Dom Nesci
You have to build the house on top of the land. And the reason why I like it is Joiner is an excellent little market where it's about 20 kilometers north of Brisbane. The north of Brisbane is an attractive market to me because it feels like there's a lot less supply up there and the rental returns are extraordinary. We've had some agents come back to us and confidently come back and say they will actually sign a five year rental guarantee at $500 per week.

Dom Nesci
That's from the developer where they've baked it into the build. It's coming from an agent and a third party that will say, we'll definitely get you some tenancy in that property. So I think that they're well, price very strong yields vary. It's a it's a in an established market not a lot of supply and it's a really good quality product.

Dom Nesci
So that's showing up in Brisbane.

Chris Booth
So I mean just on that one then. So that's a new that's a new dwelling, Yes. So how long would it take typically to construct from purchase.

Dom Nesci
So these ones, the completion timeframe are going to be about the end of 2022. Yeah, they will be starting construction in March and some of our clients have really liked the fact that in this deal the developers allowed for us to exchange on the land for $10,000 and then 5% on the build. So that's about 15 K So you're in, you can reserve the block, have it under your control for $25,000 and you have a little bit of time.

Dom Nesci
So you got until March to save the remainder of your deposit, get your financial affairs in place, and then basically you've got about a nine month time frame. So effectively by the end of next year.

Chris Booth
Perfect, Perfect. And the big thing for me, it's like cash flow on this, these types of dwellings, once it's constructed and you've got at least out, you know, you've got the heavy, you know, you've got the large allowances for depreciation which manages the cash flow so much better for you as well, which is a real plus for a new property.

Chris Booth
Well, I mean, unlike that and I'll be Googling Joyner on the map a little bit later, do you have anything in in a different sort of suburban and not sort of the Brisbane area?

Dom Nesci
Yes, absolutely. So I really like the Melbourne market. So we've got to I've got more than two. We've got a number of different property opportunities in Melbourne that range from split contracts or geo contract townhouses and houses, which range from about 470 odd thousand up to about $600,000. And they are in areas let me just put this.

Chris Booth
Up just before you jump into the property itself. Just tell me why you like Melbourne, because it hasn't had a pretty big growth this last sort of 12, 18 months or not.

Dom Nesci
Well, it's been one of the most depressed markets out of all of Australia. It's moved the slowest, nearly that nearly the slowest moving market. And that is because a lot of those migration numbers that we saw, people have been leaving Melbourne, have been going to the other states. It hasn't received any international migration. So it's it's the demand side has been lackluster.

Dom Nesci
But then also the Melbourne market has been severely depressed because they've gone in and out of lockdown. It's been physically impossible to inspect, it's been traumatic. So lots of people, we are across all of Melbourne, we've got stuff in Werribee when it's like Essendon and as well as places like Berwick or Burek as the Melburnians like to say.

Dom Nesci
So we've got a very good exposure across all of the Melbourne market.

Chris Booth
Melbourne intrigues me. I mean it's a big city and it's one of the biggest obviously in Australia. So it's interesting to hear that, you know, it's probably underperformed in the last 12 months due to the impacts in the properties you've got there. You mean anything in particular you'd pick.

Dom Nesci
Choices, Choices. You know, I really like the member and or actually the Jubilee Wyndham Vale estate. I really like it inside there. And we've got some great relationships of builders and the developer and that estate houses less than 600,000 is a really good option. I like the Barrick option. That's great because our single contracts and you know, Chris, you know, this better than most sometimes a house on land build can be a lot of moving parts for purchaser.

Dom Nesci
So having a single contract, three bedroom townhouse for 610,000 in a well-established sort of infill area is very attractive. It's a boutique estate where there's only about 100 or so townees and you've got a beautiful little civic center are also say that these Mill Park townhouses, we've got a great relationship with the developer there, that three storey townhouses, three bedrooms, double car, garage, 680 K but you've got a good piece of land content they architecturally designed and they're just absolutely beautiful.

Dom Nesci
I'll just show you that they're just stunning, like they're there for us to buy something like this. In Sydney, you're spending probably close to $1,000,000.

Chris Booth
Yeah, they're really not certainly all fantastic. I really like them. They're lovely.

Dom Nesci
Yeah, they're really, really nice. Also, it's also screen sharing and all.

Chris Booth
Yeah. I mean, just to wrap up, I mean, look, people can, you know, do the research and they can go on to your website, but I really think the most important thing is first and foremost is get in touch and speak to one of, you know, you guys in your team or yourself. So you have to someone get in touch with Dominici then?

Dom Nesci
Well, I mean, you can pass on my details to your team and I'm very happy to have a chat to any of your team. We've got a number of investment specialists who will instantly get on top of any of your mates. For clients that are watching this out there, just Google wealthy WTA. I that's wealthy dot com trader we're on YouTube.

Dom Nesci
You can Google us we're on Instagram and all the different social platforms Flickr to text email Kol, whatever. We're happy to have a chat.

Chris Booth
Beautiful. All right. Well really appreciate the insights today. I really value your thoughts and insights to the the nation of property, but also those little macro and micro sections of Melbourne and Brisbane as well. But yeah, look PM me if you want to have a catch it. We don't have a great day.

Dom Nesci
I like to take a bite out of earthy. Is that the segment. Thanks. So I appreciate jumping on the show.