In this video, find out more about the unique relationship within the Dwyer group, between the builder Wayne Dwyer from Dwyer Quality Homes and property investment specialist Jason Dwyer of Dwyer Property Investments.
Interviewer: I'm here with the brothers, Wayne and Jason Dwyer. We're here to find out more about this unique relationship within the Dwyer group, between the builder Wayne Dwyer Quality Homes and to our property investments, the investment specialist run by Jason. Wayne Dwyer is a local Sunshine Coast Builder who's been building homes in South East Queensland for over 35 years. Good evening Wayne.
Wayne: Good evening to you.
Interviewer: Jason Dwyer has been involved in property and some capacity for many years, but it was only in 2011 that after Wayne saw a need in the market for a specialized investment division, that Jason joined the company and created Dwyer Property Investments. Jason, good evening.
Jason: Good evening.
Interviewer: I might just start with a little bit of background to go back to the beginning, Wayne.
Interviewer: When did you build your first home on the coast?
Wayne: Oh, geez. We're down wide but, probably 1984-85 probably, in Mooloolaba built their first, built the first time there.
Interviewer: And you got a photograph of the first [crosstalk]
Wayne: We've got one in the archives here somewhere.
Interviewer: And thinking back when you built your first home, did you imagine that you'd be running a company 35 years later, building over 50 houses a year?
Wayne: I could never have imagined that. I only imagined having a building company in 35 years time, but never imagined it would have gone to the extent that it has over time.
Interviewer: I would imagine along the way, you've probably seen some changes on the coast.
Wayne: Sunshine Coast has a lot of changes. Yes. I've been here to witness a lot of them because [crosstalk]
Jason: They have been big, the changes are quite dramatic. Almost more in the last 10 years and the previous 20 before that.
Wayne: Yes. There's a new hospital to name one.
Jason: That's the biggest medical precinct in Australia as on the Sunshine Coast and it's linked to the university, as well. So, it's a Sunshine Coast University Hospital, it's a teaching hospital. So, visiting people from around the world, surgeons and medical people are coming here from around the world. It's about lots of research. That's the thing such created thousands of jobs and brought a lot to the region.
Wayne: The new international airport with the second runway.
Jason: Yes. That's happening pretty soon, is that?
Wayne: It's opened.
Jason: Those are?
Wayne: Yes, I think, in the middle of the COVID[?].
Interviewer: Okay. And of course, all of these developments and this support must be attracting a lot of people to buy investment properties up here now, as well.
Jason: Well, yes, a lot of people see the benefits of - it's a high growth area. So, all the indicators are if you go back to the data and the research and that's the thing that I do, then, yes, a lot of indicators that the population is growing. The population demographic is changing but more professionals coming up here. There are certain businesses that have relocated their head office like Youi Car Insurance, that's Youi insurance. They've relocated their head office from Brisbane to the Sunshine Coast. Overseas, data cable is coming from Asia straight into the Sunshine Coast going to be high-speed internet in Australia. So, there's lots of things happening. And if you actually, list all the infrastructure projects that are going on, I can see why a lot of people in Queensland a bit to the jealous of this little pocket because it's getting a lot of investment dollars.
Interviewer: Exciting, isn't it?
Jason: It is good, but that's where people want to live, as well. It's got a great lifestyle, the jobs that are here. And so, that's where investors are seeing that really and seeing that capital growth is what they're after and that's what they're getting.
Interviewer: And Wayne, having this specialist arm, this must give advantages, so that your building properties which are fit for purpose for investors.
Wayne: Absolutely. I mean, Jason really knows what the investor needs and he also knows what the tenant needs. So, combining those two things together, certainly, the specialized investment division is something that we needed...
Wayne: … to be able to tie those two things together and so, it's been good.
Interviewer: I'm interested why - because I suppose you could have used your existing sales team, but you chose to ask Jason to run this division. So, there must be some quite differences and benefits perhaps of being intertwined.
Wayne: Well, certainly. Certainly, differences. The fact that our sales team, they're very good sales team, but they sell houses. They don't necessarily think of nor consider all of the factors that are involved into Dwyer investment property. It's totally different on that factors probably.
Interviewer: And Jason, you must see the benefits of being linked to your brother's building business.
Jason: Yes, very much of. Because you're part of the business, you're inside the business. So, working together so closely with the builder is a huge advantage over any other sort of investment company that sort of supposed prodding from the outside to try and get the builder to fit what they want. So, working so closely the builder, you get to build good quality houses. So, you're - and the process is good for your client, as well. They have a good experience. And they're ready to build stuff that we go ahead and build and sell, as well. However, it's built for the purpose. It's built for investors and it's built for tenants. So, tenants remain happy, they stay in there longer and produce a better rental yield. So, they're the sort of things that you need to think about when building a property to make sure that it satisfies all those criteria.
Interviewer: So, it's probably fair to say that you're talking the language of the investor. And earlier, we mentioned, you mentioned to me this process. You've got a three-step process for investors.
Jason: Yes. Well, a lot of investors don't really, don't consider this process. They often just think about buying investment, we want to get an investment property. So, they just go and start looking at houses. Honestly, it's the wrong approach. It's sort of starting from the wrong end of this thing. They've got to think about what their borrowing capacities is and talk to a mortgage broker is the first step. The second step is they need to then understand the full financial, if financials behind on the investment property. Things like tax depreciation, maximizing those and what their loan costs are going to be. There's a lot involved with it that are going to be, that if you just started the property end of it, you can sometimes get it wrong and people make mistakes. So, starting with your borrowing capacity, step one. The second step is understanding the financials, your cash flow, all of those things. And the third is the actual choosing a property that's going to suit those investment goals because not one property fits all. Yes, it's three basic steps.
Jason: If you follow those and get good professional advice from a broker and myself, and then you get a good quality build from the builder that's fit for purpose as you said, then you really can't go wrong.
Wayne: And we do it all within the one organization. So, we cut out the middleman.
Interviewer: Yes. Yes, that's must be a major advantage in property. I would imagine that maybe, even savings and the time [crosstalk]
Wayne: I wouldn't spend money to them. And that can be offered because we simply don't have that middleman that most other organizations have to feed.
Jason: Dealing directly with the builder is savings and security, that gives us security, peace of mind. For the investor, they know exactly who's going to be building their property, than going through a third party sort of marketing company. And the savings because yes, you are already buying it directly from the builder. So, there's not that third party that has to be paid commission based.
Interviewer: Yes. And Wayne, obviously, you can build properties anywhere on the Southeast Coast of Queensland, but why most of your properties on the Sunshine Coast?
Wayne: Well, you're going to go to revert back to sort of what we're talking about before. When the investment here that the state government's putting in, that the council here are investing here, you have the high-speed internet, all of those things that we spoke about. So, if I were to invest money, it would be at the Sunshine Coast. Now, I can invest money anywhere. I can go to Brisbane or go to the Gold Coast but no, I would choose the Sunshine Coast over anything at the moment.
Interviewer: And you have.
Wayne: And I have, yes. And through property investment, I've been relatively successful, as well.
Interviewer: Well, that's very powerful endorsement of the coast. I'm also interested, why are you guys offer a three-year rental guarantee?
Jason: Well, the main reason is, it offers peace of mind and security to the investor. A lot of people are concerned, their biggest concern often is what if I buy a property and it is still vacant? I've still got to pay the bank and I'm not getting the rental income. And it's a fair question. It's a genuine fear that is real. So, by offering the three-year rental guarantee, it gives people a total peace of mind of the first three years. They don't have to deal with property management, they don't have to deal with any risk of vacancy. So, they can sleep at night knowing that they're getting the rent paid every month.
Wayne: Of course, we can sleep at night offering the three-year rental guarantee, as well, because we know it's on the Sunshine Coast. Therefore, it's a growing area and we simply do not have the rental vacancies.
Jason: It's the lowest rental vacancy rate in Australia. So, we're very confident of offering a three-year rental guarantee because we know that they are not considered vacant.
Wayne: And in the confidence is there for the investor because after the three years, they're not going to have the rental vacancies that they're going to have in some of the other places.
Interviewer: And I'm interested, do many people take up the three-year rental guarantee?
Jason: Yes. Everybody.
Jason: Yes. There's not one that hasn't really and then after three years, they generally stay with us, understand the property management, anyway. So, now, the three years is a good period of time. It gets everyone peace of mind, understanding security.
Wayne: It gets everybody started. Doesn't it?
Wayne: After a couple years, they can get a second investment property and put it on the three year as the first one comes off the three-year guaranteed rental. They've got two properties anywhere they go.
Interviewer: I think that leads us into another interesting area Wayne, because we've just gone through this unprecedented time of COVID and clearly, there's a lot of uncertainty in the investment markets and a lot of people have seen a fall in the value of their superannuation. I would imagine that there's an opportunity for people investing in bricks and mortar, is now a good time to be getting into property again?
Jason: It certainly renewed interest, as a lot more people calling up about this. If they're concerned is getting a statement and has dropped by 10%, 15%, 20% and that's their life savings. If they haven't diversified that portfolio and actually got a property then they're concerned and so, they should be.
Wayne: When the reality is their investment shares will be on expectancy to what they were before and then they'll continue to march on. I mean, that's the reality, but every year, year after year, property will outperform, outperforming the share market.
Interviewer: Yes. And it feels that if that's the case, that's going to outperform the share market and we're talking about a clear hotspots, the Sunshine Coast.
Interviewer: So, this probably has never been a better time to invest.
Wayne: No. It's a great time to invest and also, when people are thinking of diversifying their portfolio, whatever they're at. The superannuation, most people super is tied up in shares.
Interviewer: Thank you, Jason and Wayne. That was really interesting. I feel that we've got a really good insight into the reasons why having the investment arm tied so closely to the building arm is so important and offers a unique difference. You've clearly articulated why the Sunshine Coast is such a hotspot. So, it's been very illuminating conversation. Thank you both very much for your time.
Wayne: Thank you.
Jason: Thank you.
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