Wealth Foundations

Wealthi's Co-founders Domenic Nesci & Peter Esho discuss a range of themes in regards to inflation rising in Australia.  Dom & Pete shares an overview of the global factors causing prices to soar, fears of hyperinflation, and the future trends happening in the market that will directly impact the Australian markets.  

Watch the full episode to learn whether Australia will sustain its growth or head into a high inflationary environment.

This is an excellent episode with many insights, delivered in a unique and upfront format.   

Get in touch with today's podcast guest.  

Episode transcript highlights

Peter Esho: (03:08)

No, I don't think so. Stagflation gets thrown around a lot, but basically what's happening is we've got inflation now, but we've also got growth. It's inflation with growth and there's a lot of pent-up demand after the lockdowns.

And Australia's just a great place, a great, great economy to be investing in, to be working in, to be building a business in. And stagflation is when the price of things goes up, but you don't have growth and you don't have a solid economy.

It's just prices going up. We don't have that at the moment. And I think what we'll see next year Dom is a lot of the inflation charts come out of the market a little bit. I think inflation will moderate. We do have really low rates. Really, really ultra-low rates and so you have to expect inflation, but next year will be more of a year of adjustment and the year after.

Domenic Nesci: (04:15)

And it's interesting because people are talking about inflation and there are a number of key things that are causing it. It's obviously low rates, the halts, it's been very difficult for things to get in and out of countries as well, so logistically it's been tougher for things to move around.

That's gotten more expensive for building materials, for supplies of electronics, cars, everything, it's gone up. Now we're going to see wage growth is what a lot of people are talking about because 2 to 300,000 migrants haven't been coming to the country over the past two years, there is an undersupply of workers out there. And there is a lot of activity and a lot of business opening up.

Hairdressers are getting pay rises, people in the building industry are getting pay raises. We're seeing pay go up. And yeah, I think that you're right. We're going to see a little bit of inflation for the short to medium term and we're going to feel it. But have you got any concerns about hyperinflation?

Peter Esho: (05:22)

No, not at all. And I'll tell you why, because see, we went through this big disruption to the global economy. COVID just really put everybody on their bum. All around the world, so it wasn't like we had an Asia problem, like SARS, for example, it wasn't like we had an Ebola problem, which was Africa and a little bit in the West. Everywhere nobody was immune from it. And so when that happens across the whole world, you get a disruption to everything, including supply chains.

Wealthi's UK Investment Specialist Christopher Hynes chats with Liam Rogan from Get Ground to share insights into the shift towards buying property as a limited company.   Both Chris & Liam discuss how property buyers can strategically structure their investments to maximise capital gains and get the most out of their investments in a cost-efficient and legitimate approach.   

Recently, there has been a sharp rise in the UK market towards buying property through limited companies. Liam notes that having a property under a limited company account has huge tax-efficient benefits and protection than buying as a private landlord.   

For this reason, companies like Get Ground who help property buyers purchase buy to let properties as a limited company, have seen a drastic demand for their services.

This is an excellent episode with many insights, delivered in a unique and upfront format.   

Get in touch with today's podcast guest.   

Christopher Hynes  

Linkedin - https://www.linkedin.com/in/hyneschris  

Wealthi expats - https://expat.wealthi.com   

Liam Rogan 

Linkedin - https://www.linkedin.com/in/liam-rogan-bb8931105/

Get Ground - https://www.getground.co.uk/ 

Subscribe to the Wealthi channel to learn more about Property Investing in Australia.   

Audio - https://anchor.fm/wealthi-expat  

Website - https://www.wealthi.com.au  

Wealthi Academy (online course) - https://www.wealthi.com.au/academy  

Our Reviews - https://www.trustpilot.com/review/wealthi.com.au  

Peter's Substack - https://peteresho.com   

For media inquiries - [email protected]  

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Wealthi's co-founder Domenic Nesci speaks with Maqro Capital's founder, Conrad Song, to share his investment philosophy and the tips to build and manage an investment portfolio.   

Dom and Conrad discuss a range of topics throughout this conversation, including the fundamental principles Maqro Capital follows to invest, risk management, and how to set up your investment portfolio against volatility in the market.   

Conrad also notes the key to building wealth and investing well, comes down to having a clear strategic plan. The road towards wealth requires hard work, sacrifices,  and the eagerness to learn from those who are much smarter than you.

Domenic Nesci: (14:00)

I want to talk to you about what you're seeing in the market, because I mean it is a funny time. It is a funny time in the market and what kind of things are you seeing that are relevant for the average investor, or relevant to even you and how should we be responding to this current economic environment?

Conrad Song: (14:24)

Yeah. I guess there's a lot of variables to it, but firstly obviously we're coming out of COVID. Or, at least domestically, here locally we are. And then all of the normalization effects that will happen from that I think need to be very carefully implemented or strategized when taking up allocations into the market. For example, there are companies that did really well during COVID and as we come out of lockdown, they will continue to do well, because it's almost like this shift in trend or this shift in behavior that's happened. Whereas there are other businesses or industries that historically might have done well during lockdown and COVID, but they will revert and normalize. And I think investors need to understand what parts of their portfolio are falling into those other buckets, right? Outside of that, we're at extremely elevated levels.

Conrad Song: (21:44)

Diversification is numbers. You're not diversified just because you have a stock in this industry compared to let's say that industry. You're diversified because the correlation between those two allows for that diversification or that reduction of volatility.

Domenic Nesci: (23:26)

If I listen to you carefully, the thing that sounds ... The throughline in all of that is don't get caught up in any one economic indicator or policy decision. Like, certainly pay attention and respond, but you need to really be paying attention to the fundamentals of that specific investment. Whether it's a company or a property, there are specific things that impact that business or impact that property that's going to make it a good investment.

#Wealthi #MaqroCapital #investments #data #research #stockmarket

Wealthi's Investment Specialist Christopher Hynes speaks with Tactic Property's Managing Partner, Mel Pikos, to share the top reasons to invest in the Brisbane property market.   

Chris and Mel discuss Brisbane's current infrastructure boom and the driving forces pushing demand onto the Brisbane property market and property prices to unforeseen heights.   

Mel notes that the combination of developments such as the Queen's Wharf Casino, the Brisbane airport upgrade, and the 2032 Olympics are some of the few reasons why Brisbane will be an economic powerhouse and the ultimate tourist destination point in Australia.  

Listen to the full conversation to understand what makes Brisbane the next innovative business logistics hub and why investors and leading industry developers are racing to enter the Brisbane property market.

Wealthi's co-founder Domenic Nesci speaks with Avari Capital's chief investment officer, Alan Liao, to share insights into the Australian property investment sector.  

Avari Capital Partners is a Sydney-based real estate fund management and private equity lending firm that oversees over $1bn in assets under management.  

Alan shares insights into Avari Capital's investment principles, strategies, and outlook for finding key investment opportunities in the market.   

Both Domenic and Alan also discuss what makes the Australian property market an attractive investment for investors and why property investments are among the best assets to build wealth.

This is an excellent episode with many insights, delivered in a unique and upfront format.   

Episode transcript highlights

Domenic Nesci: (14:00)

That's interesting. So there's two... You're paying attention to the office market, commercial, and then you're also paying attention to industrial. And the things that stood out to me is that the asset value, the prices are going up, but effectively the underlying asset really hasn't changed. Rental growth isn't there. Do you feel like we are going into a bit of a bubble or a boom, and do you anticipate there will be some kind of fall or crash in asset prices in the future?

Alan Liao: (14:29)

We don't know. These bubble type of thing... It's a bit hard to call it, what is a bubble, what is not a bubble. But these types of things can last for years. This means that we just going to be a little bit more careful than buying something at 3% and hoping this trend will continue. And I don't think this trend will just keep continuing.So if people are happy with just keep collecting the 3% over the next 10, 20 years, then that's probably an okay investment. But certainly, we're not anticipating, okay if we buy an industrial warehouse at 4%, the cap rate is going to keep compressing and the cap... Which means the capital value is going to keep growing.Another thing that people probably pay too much attention is the profile of the tenant, the lease profile.So if it's got a strong lease, the property tends to trade at a very, very significant premium to something that has a weaker tenancy profile. But people always forget, end of the day we buy the land, we buy the property. So, we always say, there are three components. One is the land? The other is the property. The third component is the lease. Lease and property are actually depreciating assets. Over time they go down in value. The only thing that really goes up in value is the land. And a lot of time that when investors buy properties, they pay too much attention to lease.I'm not saying that you shouldn't pay attention to the lease, but the lease isn't the only thing that dictates the value of the property. So a lot of times people forget about what's the underlying asset, what's the underlying property they're actually buying. And that's also dangerous from our point of view.

Wealthi's Investment Specialist Christopher Hynes speaks with Beanstock Co-founder Alexandre Fitussi to discuss the French property market outlook.

Chris and Alex discuss various topics, including Paris's property market performance compared to other cities, trends, and the latest changes impacting the property market.

They also discuss how the pandemic has driven demand from capital cities to regional markets and share other insights highlighting similar trends across global markets like the UK, Australia, and the United States.

Learn how Alex and the team at Beanstock are helping property investors invest with ease and offering ongoing support through the entire process.

This is an excellent episode with many insights, delivered in a unique and upfront format.

Get in touch with today's podcast guest.

Christopher Hynes  Linkedin - https://www.linkedin.com/in/hyneschris

Wealthi expats - https://expat.wealthi.com

Alexandre Fitussi  Linkedin - https://www.linkedin.com/in/alexandrefitussi

Beanstock - https://beanstock.com

Subscribe to the Wealthi channel to learn more about Property Investing in Australia.

Audio - https://anchor.fm/wealthi-expat

Website - https://www.wealthi.com.au

Wealthi Academy (online course) - https://www.wealthi.com.au/academy

Our Reviews https://www.trustpilot.com/review/wealthi.com.au

Peter's Substack - https://peteresho.com

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Wealthi's Domenic Nesci chats with True Savings Founder Pete Steel to discuss the transformative way in which True Savings is helping Australians save billions in mortgage lending.

As a former executive at Commonwealth Bank and now founder of True Savings, Pete notes that Australians can save between $5000-$9000 a year if they push for better rates. True Savings work with over +40 lenders aiming to help Australians find the best market rates and make the process of mortgage lending simple.

Watch the full conversation to learn more about the changes happening in the lending sector and what investors and homebuyers can do to ensure they are not overcommitting in their loans.

Episode transcript highlight

Domenic Nesci: (12:00)

And this is I think the perfect example of how Australia is run differently from other countries and in many ways we run essentially an oligarchy, there are four major banks.

I don't say that with any venom, but there are people that are running the country from a banking level, they do talk to each other, they talk to the government and then that allows for them to make these small and subtle tweaks along the way so that it can be, as you said, more orderly growth and not something that's spirals out of control with too many people and mixed messaging.

Pete Steel: (12:33)

Yeah, exactly. And we have studied overseas banks and the Australian market as well, I think the Australian market is largely very well run. The majors like us in particular and a couple of other regulators and you can see compared to world performance there's been times other parts of the world have got overheated and didn't take the right intervention, so I think that's a real positive for Australia.

With my, as you pointed out, gray hair, I was a kid but I remember those 17% interest rates at one stage 30 years ago, 40 years ago and I don't think we'll ever see them again. But when you're in a certain phase of whether it's stock markets or housing cycle, it's always hard to see the change, but low-interest rates, eventually they will go up again, it might only be one or 2% because it's going to be a function of world funding markets as well.

But I think we're more in a state of high demand like this, it's particularly Sydney and Melbourne not limited too but they're wonderful cities. A lot of people want to live in Sydney and Melbourne so you see an increased rate of demand same with parts of Queensland as well. I think it's sustained demand, I don't think we're in any chance of being in a bubble though, it's just hot because there's a lot of people who want to either investment exposure or to live in those environments.

And the trick is for the regulators and the banks and all of us to be responsible to manage increased demand over the years, immigration starts to open up again and make sure it just continues on that lovely upward trajectory that is certainly good for asset appreciation for all of us.

Wealthi's Co-founder speaks with CoreLogic's Eliza Owen to discuss the latest trends and insights coming out of Core Logic's data on the Australian property market.   

They review market performances across leading Australian cities, price projections and affordability constraints in particular markets, and the latest regulatory changes impacting the Australian property market and the investment pool.   

Eliza shares expert insights into the market opportunities across the Australian property market and her outlook for what is to see come heading into 2022.

This is an excellent episode with many insights, delivered in a unique and upfront format.   

Episode transcript highlights

Domenic Nesci: (18:28)

Okay. That's a great answer. I love that, the virtuous cycle. It's something that people should think about a lot more often because it will hit a moment, but normally hits its moment when affordability gets too high.

And then that's when it's like, "Well, it's a good thing for you because now prices are too high." And I know that you're a busy lady, and you've got plenty of demands in your day. So I'll round it up with this last question. You mentioned something important that many investors and homeowners don't want to admit to.

The property market will drop at some point, and there will be some negative price growth if you will. When do you foresee that happening? Let's sort of make a prediction that we can then go back to in a year, two years, or three years depending on what you say.

When do you think the market will slow? And rather than jumping straight to it, let's start with what do you think the next 12 months holds for us, but then also when do you think it'll slow down and maybe have that negative prospect.

Eliza Owen: (19:30)

I think probably a pretty boring mainstream view, but the next 12 months would hold, I'd say, at this stage continued growth, but the rate of growth would be much smaller. So you might go from 22-23% over 2021.

And then next year that would look much lower, maybe a 5 or 6% growth over 2022, just because of affordability constraints, and naturally starting to taper the cycle. And we're already seeing that in the growth rates. Ultimately what's going to trigger the decline in prices is going to be a change in financial conditions.

So whether it's an increase in the cash rate, which isn't unexpected until 23, 24 or APRA does intervene with another maybe a limitation on those debts to income ratios of six or more. It's those kinds of factors that are going to change demand for credit, and any change in demand for credit has an impact on housing demand.

When it came to the onset of COVID, there was a big call and a fall in house prices of 10% peak to trough, that never happened. So I think if I've learned anything through this period, it's just that you cannot tell the future. Those are kind of the best mainstream guesses of what can happen to the housing market over the next few years, but we'll just have to wait and see ultimately.

Wealthi's UK Investment Specialist, Christopher Hynes shares a Wealthi podcast episode recap. 

Wealthi's Domenic Nesci, Jody Wang, and special guest Stephanie Davies discuss rentvesting, financial freedom, and benefits of rentvesting vs. buying your own home. 

Rentvesting is an investment strategy that allows Australians to live where they want to live and invest where they can afford it. 

Dom, Jody, and Steph share their investment stories and how property investing has allowed them to travel, live abroad and accumulate a level of financial freedom, and having a sense of empowerment. 

This conversation aims to open investors' minds to the boundless opportunities available to build wealth, have security and gain freedom through rentvesting and property investments. 

This is an excellent episode with many insights, delivered in a unique and upfront format. 

Get in touch with today's podcast guest. 

Domenic Nesci 

Linkedin - https://www.linkedin.com/in/nescidomenic 

Jody Wang 

Linkedin -https://www.linkedin.com/in/jodyqywang 

Stephanie Davis 

Linkedin - https://www.linkedin.com/in/stephanie-davies-20600 

If you enjoy listening to the Wealthi podcast, rate or leave us a review on iTunes - https://podcasts.apple.com/au/podcast/wealthi-podcast/id1443986129

Subscribe to the Wealthi channel to learn more about Property Investing in Australia. 

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Wealthi's Co-founder Domenic Nesci chats with Hoyne's founder, Andrew Hoyne, to share his outlook on the Australian property market and transforming spaces into meaningful places.   

Hoyne works with leading companies such as Mirvac, Frasers Property, Dexus, TOGA, and many more to create meaningful destinations and experiences. Hoyne's is driven to bring value, purpose, and vision into developments and communities.   

Listen to the episode to learn more about Andrew's philosophy for life and business. He shares his tips for building a wealthier life and insights into the current trends and shifts happening in the market.

This is an excellent episode with many insights, delivered in a unique and upfront format.   

Get in touch with today's podcast guest.     

Domenic Nesci  

Linkedin - https://www.linkedin.com/in/nescidomenic   

Andrew Hoyne 

Linkedin -https://www.linkedin.com/in/andrew-hoyne-1a5a02 

Website - https://hoyne.com.au 

The Place Economy - https://hoyne.com.au/the-place-economy  

Subscribe to the Wealthi channel to learn more about Property Investing in Australia.     

Audio - https://bit.ly/wealthipodcast    

Website - https://www.wealthi.com.au    

Wealthi Academy (online course) - https://www.wealthi.com.au/academy    

Our Reviews https://www.trustpilot.com/review/wealthi.com.au  

Peter's Substack - https://peteresho.com      

#wealthi #podcast #placemaking #hoyne #australianpropertymarket#realestate