In this on-demand webinar, we are joined by Domain Group's Data Scientist - Dr Nicola Powell for a property update.

1. Helping you build & manage
your property portfolio

2. Maximise audio quality
• Please ensure your speakers are on, volume is up and not on mute.
• You can test your audio in the control panel of the
Go To Meeting software, under audio preferences.
• If you can’t hear us yet, please ensure your speakers are on and
turned up.
• TURN OFF: Outlook, Skype, online back-ups and any music or video
downloads.
• Faster internet = better quality audio.

3. This presentation contains general information only and does not take into
account your personal objectives, financial situation or needs and you
should consider whether the information is appropriate to you before
acting on it.
Before acting on any information you should consider seeking advice from
a financial adviser and your accountant before making any financial
decision in relation to any matters discussed in this presentation.
General advice disclaimer

4. Dennis Wong
• Product & Training Manager.
• Property investor for the past
10 years
• Personal experience with
renovations
• Great amount of industry
experience

5. • Data Scientist for the Domain Group
• Her key objective is to create factual data driven
conversations across all media channels.
• Nicola provides regular property commentary for
local and national media outlets including digital,
print, television and radio.
• Her passion is translating data to digestible
consumer friendly columns.
• Within her career she has published numerous
academic and interest papers.
• She is quickly establishing a name as a notable
property commentator in Australia.
Dr Nicola Powell

6. Real Estate Investar
• Property investor focused technology company
founded 2006
• We help simplify Real Estate Investment
• We help property investors make the most of
their investment portfolios
• 260,000+ investors subscribe to our free
membership, news and market reports
• 2,800 current members
• Mix of personal users, brokers, buyers agents
and accountants

7. ASX:REV
• Heavy investment in product
• Public company governance
• Strong and focused board;
• Simon Baker – Former CEO of REA
• Anthony Catalano – CEO of Domain

8. In partnership with…

9. Our mission is to provide property investors around
the world with the best advice, guidance, products
and services to enable them to create wealth
through property investment.

11. Investor Insights
Who, What and When?

12. Who is buying?

13. Three types of property investors
Dr Nicola Powell
Passive Active Analytical

14. Three types of property investors
Dr Nicola Powell
Passive Active Analytical
• Limited research
• Limited understanding of the investment
path, e.g. tax benefits, finance strategy
• Purchase quickly
• Purchase emotionally
• Some degree of research to find a good
investment prospect
• Understands basic principles
• Seeks professional advice
• Increased chance of making a viable
investment
• Seeks extensive advice
• Research and analytics are a key
foundation
• Takes time to commit
• Conducts extensive due diligence
• Can miss an opportunity
Beginner-research Mid-research Deep-research

15. Three sorts of property investors
Dr Nicola Powell
Renovator Developer
Active
Short-term
Active
Short- to mid-term
Landlord
Passive
Mid- to long-term

16. What to buy?

17. Property debate..
Dr Nicola Powell
1. Economic indicators
2. Supply and demand
3. Price point

18. Dr Nicola Powell
Property debate..
a house or a unit?
1. Purchase price
2. Ongoing expenses
3. Maintenance
4. Investment goals
5. Rental potential

19. New homes
Pros Cons
Delays and extra costs
Growth corridors
(over supply)
Potential over supply
Unpredictable growth
Tax depreciation
Attractive to tenants
Lower maintenance
costs
Guarantees &
warranties
Dr Nicola Powell

20. Established homes
Pros Cons
Older home
Building reports
Emotional buyers
Maintenance issues
Avoid premium of new
build
Stronger performance
in slow markets
Value add
Negotiate price
Dr Nicola Powell

21. Depreciation
New Home Established Home (5-yrs)
Asking Price $400,000 $375,000
Land Value $200,000 $200,000
Building Value $200,000 $175,000
Depreciable Amount $200,000 $153,125
Amount ($200,000 x 2.5%) x 40yrs ($175,000 x 2.5%) x 35yrs
Real Purchase Price $200,000 $221,875
Dr Nicola Powell

22. Dr Nicola Powell
Off-plan
purchasing
fundamentals
Location
Owner-occupied
Stock
Due diligence
Fixtures & fittings
Paperwork
Depreciation
Floor plan
Yield

23. When to buy?

24. When to purchase?
Dr Nicola Powell
Key considerations:
- Market dynamics
- Research sales history
- Domain Home Price Guide
- Rental vacancy
- Domain State of the
Market Report
- Yield potential
- Future development
- Research rezoning and
infrastructure changes

25. Trend watch: house prices
Source: Australian Property Monitors 1 800 817 616. Copyright APM Pty Limited.
Dr Nicola Powell
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Sydney Melbourne Brisbane Adelaide Canberra Perth Hobart Darwin
Mar 2017 $1,167,127 $842,221 $533,292 $513,263 $692,313 $564,000 $383,558 $593,707
Dec 2016 $1,129,055 $813,146 $539,412 $506,539 $673,137 $574,458 $369,574 $576,904

26. Trend watch: house price movements
Source: Australian Property Monitors 1 800 817 616. Copyright APM Pty Limited.
Dr Nicola Powell
14.6%
15.0%
3.6%
4.6%
8.4%
-2.5%
10.3%
-4.1%
3.4%
3.6%
-1.1%
1.3%
2.8%
-1.8%
3.8%
2.9%
Sydney
Melbourne
Brisbane
Adelaide
Canberra
Perth
Hobart
Darwin
YoY Change QoQ Change

27. Median Unit Price
Source: Australian Property Monitors 1 800 817 616. Copyright APM Pty Limited.
Dr Nicola Powell
Sydney Melbourne Brisbane Adelaide Canberra Perth Hobart Darwin
Mar 2017 $741,789 $464,247 $385,987 $299,587 $410,256 $369,594 $283,627 $408,652
Dec 2016 $721,920 $463,169 $393,177 $301,909 $412,189 $383,087 $274,183 $464,148
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Mar 2017 Dec 2016

28. Units price movements
Source: Australian Property Monitors 1 800 817 616. Copyright APM Pty Limited.
Dr Nicola Powell
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0%
Darwin
Hobart
Perth
Canberra
Adelaide
Brisbane
Melbourne
Sydney
YoY Change QoQ Change

29. Trend watch: affordability
Source: Australian Property Monitors 1 800 817 616. Copyright APM Pty Limited.
Dr Nicola Powell
Price constraint for buyers in certain markets
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
Mar-06
Jul-06
Nov-06
Mar-07
Jul-07
Nov-07
Mar-08
Jul-08
Nov-08
Mar-09
Jul-09
Nov-09
Mar-10
Jul-10
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Jul-16
Nov-16
Mar-17
Sydney Melbourne Brisbane Adelaide Canberra Perth

30. Building approvals rise
Capital cities tell different stories
Source: Australian Bureau of Statistics, Building Approvals, 8731.0
Dr Nicola Powell
0
10000
20000
30000
40000
50000
60000
70000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalBuildingApprovals
Sydney Melbourne Brisbane Adelaide Perth

31. Greater Sydney
Source: Australian Bureau of Statistics, Building Approvals, 8731.0
Dr Nicola Powell
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
BuildingApprovals
Houses Units

32. Greater Melbourne
Source: Australian Bureau of Statistics, Building Approvals, 8731.0
Dr Nicola Powell
0
5000
10000
15000
20000
25000
30000
35000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
BuildingApprovals
Houses Units

33. Greater Brisbane
Source: Australian Bureau of Statistics, Building Approvals, 8731.0
Dr Nicola Powell
0
5000
10000
15000
20000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
BuildingApprovals
Houses Units

34. Australian Capital Territory
Source: Australian Bureau of Statistics, Building Approvals, 8731.0
Dr Nicola Powell
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
BuildingApprovals
Houses Units

35. Q&A