Episode transcript
Parag Dixit
Hi, Julius. How are you?
Julius
I'm good. Parabia,
Parag Dixit
I'm going very well. How is everything?
Julius
Everything is good, bit busy. Lot of appointments with the clients, and then looking at the current environment.
Parag Dixit
Yeah,
Julius
people are bit scared, but lot of investors active as well. So, keeping a lot of work. Yeah,
Parag Dixit
lot of work, right? Lot of questions about what we can do and where we can do, I think there's an opportunity in the market, and I want to invest, and still, do you have that?
Julius
Yeah, means lot, so there is lot of pressure in affordable markets.
Parag Dixit
All right,
Julius
people are trying to buy property below $500,000 that's a segment which is most popular now.
Parag Dixit
Yeah, all right,
Julius
lot of people are worried about the affordabilities as well, but yes, still SMSF and Affordable Investment Section is very active,
Parag Dixit
I know it, it is right, so
Julius
it is, it
Parag Dixit
is good, it's good, and it's bad, and it's a bit slow in the sense that people are not sure what's going to happen, but you get a lot of questions, and that's the reason why we are talking today, you know, we today we are going to talk about one of the towns, which is so, so famous in terms of investors, they are, they're going crazy about it. Why are they wanting to invest? You know, about, say, 30 years ago, Skyline of Newcastle, that was smoke and steel, and today it's transformed to a property investment hotspot with lifestyle, you know, pouring and cafes and million dollar houses, and we're coming together today. Just discuss what is this Newcastle all about. As you know, housing in Sydney, it's becoming less accessible. You know, Newcastle has become a part of the conversation. So much is happening. A clear shift from those industrial roots of the town, now it's come back to becoming a lifestyle buzzing city, and getting attention from buyers outside the region, not only from Sydney, but from the other places as well, and that's where it's happening, and there's a population pressure, which is coming in, and the last we calculated we are looking at next 15 years having 40% kind of a jump in the population, which is huge, and the transformation of Newcastle has been significant, from its mining and industry and steel production based kind of an economy to something which is now having a phenomenal growth, supported by investments across housing and infra health, health is a big population employment generator, there in education, education again, a big, big one there. Population growth has been driven by demand for new housing and lot of good precincts, you know. You have got Newcastle West, and you've got Vic, and you've got Broadmeadow, which is happening there. It's getting a lot of new homes, I think the next to Sydney, closer to Sydney, Newcastle would be pretty much ahead with some 11,000 plus new homes, which are coming in various areas. The whole Newcastle, Maitland area is into a kind of a rejuvenation in itself, and a lot of stuff is happening there in some inner suburbs like Carrington and Tiggis Hill and Stockton, Stockton, I will talk about Stockton today. It's a beautiful place, you know. So, showing some great annual price growths coming there. It's all supported by the lifestyle appeal next to Sydney infra, phenomenal infra upgrades, which is happening there, and that's why we are seeing that Newcastle is now positioned itself for a continued growth and a phenomenal growth, which is going to come through, and that is what has got interest of investors, and that is what has got interest of owner occupiers, like likely in similar fashion, and we're all looking at it, seeing what is it in Newcastle, which the other areas don't have, and what, what brings through, right? Julius, what is there?
Julius
Yes, that's correct. What you say, it's translate into data as well.
Parag Dixit
Yeah, correct.
Julius
So, when you look at data, if you deep dive, so from last 10 years, Newcastle was growing at around 11%
Parag Dixit
Yeah,
Julius
so that's a phenomenal average compound growth in a long-term basis. When you look at last five years and two years, growth pattern extremely higher. So, from last two years, Newcastle was growing at around 24%
Parag Dixit
Wow,
Julius
yeah, so that is every month it is growing by 1%
Julius
Wow,
Julius
yes,
Parag Dixit
that's not simple. That's pretty phenomenal, right? It
Julius
is extremely high growth. Markets are diverse, so if you look at the current inventory, inventory is extremely low, so because of the higher demand, which has been created by owner occupiers as well as an investor, inventory is below three months.
Parag Dixit
Okay,
Julius
that means your days on markets are quick. When you look at the price segments, yeah, they have a good price segments as well, they have a good affordable market,
Parag Dixit
yeah,
Julius
as well as they have a good market, which is famous for the lifestyle, like you have ocean views home. So, basically, when you go together, right, yes, yes, it's beautiful, right, beautiful, yeah. So, when you look at the suburb life hexim, which is in range of in between 670 to. 750 depends on the property type. Your yields could be very close to 4.2 to 4.5% which is good for any investors with around 700 to 800 square meter land, where you have a lot of potential to build a granny and increase your income, because there is a lot of demand for a granny, because they don't have houses for the rental, versus when you go towards the suburb, like the hill or the junction, then they'll be in the $2 billion range.
Parag Dixit
Yeah, correct. Yeah, those are those are expensive, but beautiful ones again, overlooking the water. They've got a lot of stuff happening there. Phenomenal social economy, phenomenal average income, which people carry. The household incomes are pretty good there, and I think Newcastle is one place where we've seen the social economy having pretty diverse one and pretty good social economy across the areas, and that's why when you look at these suburbs, like you've mentioned, some of them are coming together with a buying affordability of say eight years or nine years or 10 years, correct, and straight up to obviously 1520 years, but that's not bad as well, that's still pretty good and pretty strong for someone to go in there,
Julius
correct? At interest rate of six and a half percent, if you are sitting in a range of affordability of 9.3 or 9.4 that means when the interest rate scenario will change, these are the most affordable suburb in a good location. Yeah, that is number one. Number two is when you look at the renting affordability, that is still below 40% below 40% of your income in a higher segments above, and when you go towards the lower segments above, it's very close to 33%
Parag Dixit
Good,
Julius
correct. And then 12 month rental changes around 9.2%
Parag Dixit
Yeah, so good rentals change, and it's affordable, and you get a lifestyle, and you get you get near to Sydney, and you're not too far off, and if the bullet train comes in, then you're in Sydney,
Julius
game on,
Parag Dixit
yeah, then you're in Sydney, right?
Julius
Yes, then you're in Sydney, yeah. And then, if you look at the average weekly incomes, the minimum average income towards the XM is around $1,500 per week, and more going towards the $3,000 per week. So, they are not like they have very, very low income as well, yeah, they are good income earners with a lot of demand for a property.
Parag Dixit
Absolutely correct. And I think one of these, because the suburbs are so well positioned and so well distributed, and it, they're growing so nicely, and people are wanting to stay there. I remember the totality index when it was showing for December last year, December 25 when it came out, it was talking of a good 53 54% of the last five years, the jump in prices, which is phenomenal value jump across the Newcastle, Maitland, and all that whole region, and it's, it's been good, and not only this, it's even the rents went up by more than 40% 42% there it is, it says that Newcastle is in, we fought with, you know, the biggies like Central Coast and South Coast, Biden Bays, and in the regional NSW, it was top third, top three or something in top third in the terms of unit growth, and unit growth is phenomenal, and one of the areas where you're finding that units have done extremely well, you know, and the it's not having a small volume as well, it's a population of about 161 $70,000 people staying there, and you're still having about two and a half 1000 houses sold in 12 months, not bad, if you're still talking of 680 odd as a median price for houses, which is low, and obviously then you have a 2 million plus kind of a kind of an area as well, very very good,
Julius
and there's more than 13 housing markets, like 13 suburbs have recorded double digit growth in past one year, and then from last 12 months there are suburbs like Jasmine, which has grown by around 25% followed by Varata Waste, which is around Varata and New Lampton, they've grown by around 15% That is like a phenomenal growth. And this is this is house market, and house market being strong. And the good part is that you can get what you want. You can start from a $700,000 property, and you can also look at a couple
Parag Dixit
of million dollar property, and you can get this, get similar lifestyle in across all of them, and that's why this has been a good construction boom in the past, and there is a good construction boom ongoing, and that's why we're having about 11,000 plus houses, which are going to come in the next few years, which is a strong, strong, strong input coming into the market, which means even the existing properties will have greater value in that, and the newer ones, anyways, are going to be
Julius
going to be little expensive, but other good thing about those is basically when you look at the growth pattern, the distribution of the growth pattern is across all the price segments, it's not only in the affordable segment.
Parag Dixit
Yes,
Julius
correct, that means you have more investors who are interested because of wheels, and then you hear a lot of owner requirements who are upgrading as well,
Parag Dixit
who are upgrading as well. All right, no, that's that's right, and you know one one good part, which has come through is in a, in a lot of markets, like Sydney markets, you will find that there is a, the apartments and the houses have a different pace of a growth, but here in the unit market has also been very. Very, very strong, and it has its all around the beach side suburbs. It has the unit market has been good, and it's not been lower in sales. It's about 50% of the houses sales has happened. Still, about 1200 1300 units have got sold there, and you will have apartments starting from a 600,000 to about a million dollars, a million dollars here, and all of them are there, which is, which I think, which are having a good return coming in terms of rental return, which is coming there, but the good part is the I think this has been the first time in Newcastle itself where some units touched about a million dollar price, otherwise they've been all affordable and still giving a 30% growth in areas like Jessamine and still grieving in Cook Sale and Newcastle by about close to 20% growth, which are getting there. It's not a bad growth to get in an year, right? In a 12 month period,
Julius
that is also in unit market. It's
Parag Dixit
not a unit market,
Julius
yeah. Because, see, there is a little bit of supply of units coming up, but still there's not oversupply.
Parag Dixit
It's not oversupply,
Julius
yeah. And then these are the units which are towards the lifestyle that you have, ocean views. Yeah, in that segment you have 30% growth in here.
Parag Dixit
Yeah, that's right. And that's where the good part is, that we've got in the last five years good five to 10% growth across various suburbs happening there. This analyzed growth, which is not bad, which is a good growth, which is coming there, and which has been supported by a lot of movement, and we'll, and I'll ask you, maybe in a little while, I'll ask you what has really spurred all of this up, but maybe if you can tell us, take us through, maybe Julius, about what, what's there in the various suburbs, what's the, how does it look that when you're saying that the distribution looks pretty good, pretty uniform, what does it look like in the various suburbs?
Julius
So, it translates very well in data. So, if I look at our data sets, and then our scores, then when you look at the various price segments, the rough price segments of in between 700,000 to $2 million yeah, right from hexim till when you go towards the when you go towards the hill of the junction or the cook hill, then the days on market score is pretty consistent, which is around 90 plus out of 100. That means liquidity score is extremely higher. That means there is lot of pressure in the market, which
Parag Dixit
whatever comes gets sold.
Julius
Yes, so it's very easy to sell there. And second thing is, it's not only in the affordable markets, across all the markets, correct, across all the price guides. When you look at the inventory score, which is, if it is inventory is below three months, it's good, that means there is very, very less inventory available in the market for sale, that is 85 and that is across all the market,
Parag Dixit
that's across all the markets, across all the market, the slight variation here and there, but
Julius
around 8080 to 8580 to 85 and then you look at the growth gap index, which is around 50 out of 100, that means yes, when you look at last 345, years growth, they had been through a good growth cycle, but there's still long way to go.
Parag Dixit
Yeah,
Julius
that means there is a good income supported by good demand and supply gap, so there is still much more growth to come. So that is what it's translating from the data when you look at the entire SC three regions data, and then one year's growth pattern is extremely good, which is scored is around in between 82 to 83 it's varying. Yeah, and then 10 years growth pattern, when we look at the long term growth, it's around 100 out of 100, because it's above state average, 11%
Parag Dixit
11% per year per year for the last 10 years continuously, and that's 100% So, if I would have invested a million dollars in Mere weather or those good suburbs in Stockton, you know, I would - my money would have doubled, right? And easy, not that's not bad. And this is a regional NSW town we are talking about, and that's that's very attractive, very,
Julius
very.. it's not original, because when you look at the remote NESCO,
Parag Dixit
yeah,
Julius
they are in between 82 to 85 that means it's so close to capital city, you can easily reach to Sydney, you still have all the facilities around,
Parag Dixit
yeah, actually regional is is not a term which fits there, because when you're talking of 170 180,000 people staying in a particular place, you, they know more, a region, right, yeah, you, you know, more even a significant urban area, you're much more than that, you're bidding close to being a main city now, right? And it's a good tag, which it has, and it's a good support supporting system, which it has, in terms of what is coming through there, and that's why I think the investor score across all the towns looks very strong, extremely
Julius
strong, so social economy wise, the entire AC three. When you look at the AC two and SA one, which is a small subset of the suburb, you still have a score above four,
Julius
which
Julius
is like good. So that means they don't have extremely low socioeconomic areas. Buying and renting affordability scores are better. So when you look at the final score of our investor, which is made by all of this indicator and much more when we mine the data and then we marry all the data, so that is in between 64 to 75
Parag Dixit
Okay,
Julius
depends on the variation of the suburb, but when the investor score is above 60, that means market is actually hot, and then you are in a good growth cycle. At this stage, the investor score is above 65 which is pretty good.
Parag Dixit
Yeah, wow, and that's that's not bad, and I think when I, when I look at the various suburbs, which are coming through there, I, I'm intrigued by, like, I was staying at the start, so you have a suburb like a, like a Hexham or a Beresfield, and you have a suburb like Jessamine, right, which are in the affordable segments, whereas if I'm a first time buyer, or if I'm a first-time investor, I'm happier in all of these suburbs now. If I'm, if I'm looking at myself to upgrade a little bit, then I can easily upgrade to a Mayfield, and I can easily upgrade to a Waterborough. Waterbrook has been horrible, it's been hot, like hot in the last 12 months. Varatta has been a phenomenal suburb, Lambton, I think Lambton has done good, New Lampton, Lambton, all of these areas have been strong, and they've been, they've now reaching about a million dollars, 1.2 $1.3 million but still having about four percentage rental yields. Okay, it's a good upgrade situation, which is within Newcastle, which presents to people, and which allows you to, okay, say, okay, I am having, I'm having a good growth, which is coming there, like, say, for example, if I talk of Warbrook, okay, now we had a 12 20% 21% growth, if I remember correctly, in the last 12 months, and then not only that, besides that, it had a good 5% plus jump in
Julius
the rental incomes, yeah,
Parag Dixit
which is, which is good, which is telling me that both rents are rising, and this is rising as well, and it's which gives me an option that, okay, when I want to invest there, when I want to go and invest in Carrington, you know, I can find that my rental increase has been 15% 16% so I have that good mixes of suburbs which are happening there, which is giving me an opportunity to say, okay, I'm an owner occupier, or I'm an investor, and I can go and stay anywhere. Most of the suburbs, which I'm looking at in Newcastle, have at least a 60% owner occupier ratio versus 40% investors, and 60 61% owner occupier ratio, you combine it with the population growth, and you are having a good, good, strong base, which comes back to you, which tells you, okay, then we are looking at the, are you, you are looking at a very strong environment, you're looking at a very strong situation, and okay, let's, let's, we'll talk about all those good things, we're saying that all these suburbs are there, rents are rising, properties are rising. What's actually happening in Newcastle? What's the trigger point for all of these things? There,
Julius
yeah, there is a lot, like they have diverse economical indicators, and then when you look at the amount of infrastructure projects, which will support this population growth, mainly towards the health, education, and defense, as well as the renewable energy, so at this stage they are expanding John Hunter Health and Innovation present, and they're spending around very close to a billion dollar,
Parag Dixit
yeah, yeah, the medical percent, yeah,
Julius
and then spending around $500 million in the city of Newcastle's expansion, and I think education has been a
Parag Dixit
good part of Newcastle, and education and the younger families and the younger people who have gone there have been a very good part of that, and if the education bit is expanding, if the university is expanding, that brings through a lot more things there, it brings through a lot more people there with the medical thing expanding, and I think I remember correctly, more than 20 21% of people are occupied there within the healthcare and the health segments, and now that this precinct is coming in, it brings a lot of impetus, and you're not talking of small 800 something million dollars, is a is a lot of money, very
Julius
close to 1000 2000 jobs, and they are kind of a permanent kind of job, it's not a temporary workers,
Parag Dixit
correct, correct,
Julius
and then those who want to come there, they need homes to live, that's why there is extremely high demand for housing. One of my friends, she was a nurse in the UK recently, she got migration visa, so they have sponsored a visa, they gave her all the relocation cost, and then they moved here, so that kind of expansion is happening here,
Parag Dixit
and that's the kind of requirement of people, and obviously they're getting people, if they're not finding the right skill, which is available, or they're not able to get that, and they're getting that over, and Newcastle has is getting a good chunk of it, a good piece of it, because, like, like you said, like good lifestyle, good place to live in, what not, it has everything there, and I, in fact, I was reading, in fact, the airport there, it shares, okay, it shares with the Air Force, the civilian airport, and now that because new fighter jets and their training bit is getting come in there, they're investing a lot of money into that airport, and there's an expansion in that airport happening, so which, which means that it is good for everyone, for all civilian aircrafts, one fine day we may hear of having a good strong domestic airport coming through there or walking through there, which may, which may give you more connectivity, which, which again brings more impetus to in, and because of the, you, if I think you remember the Port of Newcastle, that itself is having a more than two and a half billion dollars worth of a deep. Product container terminal coming there, which definitely makes sense, that when this will come in, more transport comes in, more, more flights come in, more people come in, and more jobs come in.
Julius
Also, they are expanding highways, so for m1 Pacific Motorway expansion, they will be spending around $2.1 billion What does that mean? Is the m1 one? Yes, m1 one. If they're expanding, that means they are expecting more traffic coming in,
Parag Dixit
100%
Julius
more industries, and that's why they need good infrastructure around
Parag Dixit
it. Yeah,
Julius
also, when you look at the inner city bypass, it's around $450 million
Parag Dixit
within the city.
Julius
Yeah, deep water container, as you said, is around two and a half billion dollars. And then they will be doing some airport terminal upgrades, they'll be spending around 100 and $20 million
Parag Dixit
Yeah,
Julius
so in transport infrastructure itself, they'll be spending a couple of billion dollars in the entire Newcastle region,
Parag Dixit
a few billion dollars, and we talk a few billion dollars, few billion dollars. It is not, it's not small money, it's a lot of money, and all of these ones, it's not, it's not a one-time impact. So, if you're getting a big container terminal coming there, then there's a permanent jobs which are going to come not only during the construction time but after that as well. This is a large container terminal to come through from there, and that brings a transport hub, and that's why we are talking of there is another operations hub which is being created. I think there's a lot of funds which have been allocated for an operation logistics hub which is coming there, because obviously when the container terminal comes in, then there's a lot of containers to be handled, and that brings jobs, that brings people, that brings a lot of stuff into it. When you're looking at highways being upgraded, then you're looking at transport segment coming in, then you're looking at trucks, and then you can look at, you know, vehicle sales, and then you're looking at all of these come through, but not, but this is not what it is, I think. Newcastle also has traditionally been a mining area, and that is also getting strengthened now. It's no more that mining town, which is in, which is, you know, it goes down somewhere else. There is a billions of dollars, I think more than a billion billion dollar, which is getting into coal, and all these mines, which are coming there, a few billion dollars are going there as well, and that's not small. There's a power project coming there, the whole list of stuff, which is going there. I heard there's even a wind farm coming there, which is talking of a 10 billion,
Julius
10 billion. So, wind farm, they have located $10 billion over few years, and then there is another coal mine, which is Mount, I think, Mount Pleasant coal mine, yeah, they're going to do the expansion. Their budget is around $2 billion
Parag Dixit
lots of billions floating around Newcastle,
Julius
right?
Julius
For region of 200,000 people, lot of billion, that means look at the growth.
Parag Dixit
This is growth is a very tempting growth for an owner occupier or for an investor, which is coming there. Yes, and we're not even, and we're not even talking of smaller things. We're talking of big big money going there, the talking of desalination plants coming there, being set up just to take care of people and the rising population, which is going to come there. And when, when we speak of the projections, and we spoke about it at the start, if you're talking of having 30% 40% growth in population in the next 15 years. Yeah, you're not talking small, that's a huge
Julius
growth lot. It's about state average,
Parag Dixit
it's about
Julius
it's about
Julius
state average.
Parag Dixit
And you talk, you're talking of having 60,000 70,000 people coming in there, and if 60,000 70,000 people will easily mean 10 to 15,000 new families coming there, and that's where you're looking at 11,000 homes coming there. Then you need land, and you need have a construction boom, and you have, you have people, and then you have jobs, and they already - this is coming there, the jobs are coming, the employment is coming there, education is coming there, medical facilities are coming there. I think it's an idea, you're getting a bullet train.
Julius
Yeah, so it's very well planned accordingly, because they're expecting a lot of people for that. They are building more houses, then there'll be a lot of housing demand. Also, whatever they required as infrastructure to serve that population, they're actually upgrading highways, they're creating more jobs, that means it's more focused activity. Where are they expecting a lot of people to come, and then to serve them, there is a lot of job opportunities are getting created as well.
Parag Dixit
That's absolutely right. And that's where I know it's always, it's very intriguing when I, whenever I'm hearing about Newcastle, and I keep on hearing about Newcastle from everyone, I always think, okay, is it a market which is now now attracting more investors, or is it a market which is attracting more owner occupiers, and when I look at the ratios, and when I think of it, what is what's happening there, in, you know, in your, in your ticket sales in Stockton. Stockton, such a beautiful suburb, I'll tell you, if you go to Stockton, and if it's thin strip, okay, if you go to Stockton, and you use to find houses which are beautiful, overlooking the water, overlooking the sea, and turquoise blue water, and you have got a lifestyle, you can, you can do sunbathing, you can do sunboarding, you can do all the kind of stuff you would want to do there. It's, it's lovely. It's
Julius
not too expensive either,
Parag Dixit
it's not too expensive either. And when you. Talk of such a suburb close to about a few hours, a couple of hours from Sydney. You love it, you know it.
Julius
And second thing is, when you look at the printer to owner ratio, yeah, it's purely towards owner, around 75% is towards
Parag Dixit
the right
Julius
instructor,
Parag Dixit
and that's it's a, it's a beauty, it's an expensive suburb, it's not, but it's a beautiful suburb to be in, and if you go into Miyahu, whether it's beautiful suburb to be in, it's an amazing place, you know, Lambton. I like Lambton because Lambton is a good 1.2 ish million mark, and that still holds close to 70% of people who are owner occupied. So, if you are an investor, and if you can, if you can hold off with a close to 4% rental yield and a 1.2 ish kind of a property in Lambton, then you are, then you are in for a good time, because with 70% owner occupied, there is no way that that area will not do good,
Julius
and Lambton has highest socio-economic index as well. So, when you look at the side, or when you look at the CIFA index,
Parag Dixit
yeah,
Julius
then it's around 10 out of 10,
Parag Dixit
all right, and that's that's a good, good indicator. In fact, if I'll tell you, the I think one of the upcoming areas there, which we don't know, various fields in those, and all those, they also have more than 70% owner occupied ratio, so you're looking at a first home buyer saying, okay, this is a good owner occupied suburb, and I think I can afford this house there, and I think I can go there, and I can get a 700k or something, and it falls under the first term guarantee scheme as well. So I'm fine if I want to live there, and if I want to have a good employment there, it's fine with me. Obviously, it will have a different social economy from from the other ones, right? But then that's a different thing. It's obviously I choose what I want to go for, and it fits me, and I love it, and I'm fine with it. And so, similarly, if I'm going to Warhb, now Warra Brook has been just changed over the last few months, but it still has about 60% owner occupier staying there, and that's not bad at all when I'm there, because it still gives me an indication that it's going to grow up, right?
Julius
Yeah, and then when you look at the median prices, are still close to million dollar, but the yields are very close to 4% so there is good balance of investors as well as owner occupier, yeah, and then especially in Laurier Brook, I could see they have good land sizes where a lot of people are investing into the new income properties,
Parag Dixit
all right, okay, and that that that gives you, and that gives you cash flow, good cash flow, good
Julius
cash flow,
Parag Dixit
and it allows you to enter into a good price, good price point here, close to Sydney, where you can't enter anything less than a million dollars, and you are still having a good price point, a good rental yield coming in there, and good product coming in there, and that's that's what becomes extremely attractive when I'm looking at a market, which, like Newcastle, which says, okay, you've what do I give to you? I give to you something which is cheaper than Sydney. I give to you a better value for your money value. I give to you a better rental yield. I give to you a first home buyer suitable city. I give to you a city with a super lifestyle. I give to you a city with very good infrastructure and
Julius
jobs,
Parag Dixit
lots of
Julius
jobs,
Julius
lots of jobs,
Parag Dixit
heaps of jobs, lots of employment, lots of business opportunities to come through, and if you are able to do all this, you can do that with affordable rents,
Julius
affordable
Parag Dixit
if you want to stay here and you want to work here, affordable rents if you want to occupy here, affordable to buy, and that's what makes it for phenomenal attraction in a 700 to a million something for
Julius
an investor, 1.3
Julius
maybe
Parag Dixit
700 to 1.5 million for an owner occupier. Yeah, good suburbs, good, nice areas, right?
Julius
Yeah, that's correct. So price points are in between seven to 1.3 where the investors' proportion is higher, yeah, where there is lot of owner occupier, sorry, investors' activities are happening, but for the owner occupiers also in between 700 to 2 million, where the owner occupy ratio is more than 70% Yeah, and when you look at the yields portion, then in between 3.7 to 4.5% So, for an example, if you're entering into a price guide of in between 670 to 750 and if your yields are in between four to 4.5% it's not bad, because it's
Parag Dixit
not bad, it's not bad. See, we are in a transient phase of rate of interest, where we are saying, okay, the rate of interest is close to say six and a half percent, and if I am an investor, which who can hold on to it, and if I'm saying that with a four-ish, four and a half-ish percent rental yield, I can stay put, I am getting a quality purchase, a good quality purchase, which is close to one of the most expensive market in Australia, in terms of city, which is Sydney, and I am still just a stone's throw away, and I'm still able to get what I want, right, and once the rate of interest, once the rate of interest start receding, and the all this inflation bit comes under control in some time, maybe a year or year and a half. I'll be, I'll really, really reap the benefits of a good growing population, of a good strong economy, and of a good quality housing, which is having all the amenities which I want, which anybody would want, right?
Julius
Yeah, that's right. And then that's why it's the right place to invade. So, if I could see Newcastle as in terms of the owner occupies as well as investor size, then it has a lot of opportunities for owner occupies as well, and as well as investors. So, owner occupies has good lifestyle, lot of jobs, good affordability to live, and then good socioeconomic for investors, great rental yields, great capital growth prospect, lot of infrastructure project, absolutely no supply and high demand,
Parag Dixit
absolutely right. And this is a this is a super combination, and that's why we can always say that, you know, Newcastle, it's it's it's become it's it didn't change overnight. Okay, took few years, it's transformed, it metamorphosis into it changed into something, which is, which is now what is a very different, very vibrant kind of a place, very nice kind of a place, but all it's as an investor or as an owner occupier, my own whole question would always be that this is nice, you know, I don't know whether it's going to keep on growing, but whether it's going to grow, and whether it's going to give me, as an owner occupier, something to hold on to and get into something in which I love to be, or as an awesome investors, it will start supporting and telling them that, okay, you are going to grow much faster here, you're going to grow your wealth, and you're going to be into a new thing, but Newcastle, I think it brings everything to everyone,
Julius
everything. Yeah, so generally, when we look at the investment perspective, either you see the strategy of demand and supply gap and supported by some infrastructure, which will give you a holding long-term growth, or you have a lot of infrastructure focus, but currently supply is little bit higher, so your growth is limited. In this pocket, you have both,
Parag Dixit
you both
Julius
combination is amazing.
Parag Dixit
Yeah, it's a very tempting combination.
Julius
It is
Parag Dixit
a very, very nice, very ideal kind of a combination, where you would want to invest, because you, it's always, it's a well said, it's a well known truth that if you have an investment in a suburb, which is a choice above for own occupiers, you likely have a winner in your hand, and Newcastle is, I think, one of them, which just brings you that benefit, right?
Julius
Yes, yeah. So, most of the suburbs are popular within investors and owner occupier, so either you'll get a good owner occupied demand as well as your investor demand.
Parag Dixit
Absolutely correct. No, I think that's that's the, that's one of the real, that's the key reasons why Newcastle is so attractive to everyone, to an owner occupier and to an investor as well, and I think it is. It's going to be a new revelation when we people are going to invest in the next times to come. It has a very, very good potential of rising and giving a good potential of giving wealth or capital growth to both owner occupiers and investors alike. Right.
Julius
Yeah, that's right.
Parag Dixit
Awesome, thanks so much, Julius. It's lovely chatting with you. I think we should connect more on these
Julius
things. Let's look for a next
Parag Dixit
one. All right, we'll come back with the next gem very soon, guys. Thank you so much.
Julius
Thank you.
Parag Dixit
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