July 25, 2026 • 41 mins
The expression property market reset has been recently popular in property news– but what is it?
What does it look like? And what does it mean for homeowners and investors?
Opes Mortgages Managing Director Peter Norris joined Tim Beveridge for The One Roof Radio Show to discuss.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks b.
Speaker 2 (00:11):
You just.
Speaker 3 (00:36):
Let's welcome back. This is the Weekend Collective. I'MS and Beverage,
and this is the hour where we start taking your
calls on one hundred and eighty text nine two nine two.
The way I try and describe it now is just,
you know, we invite you to enjoy the join the conversation.
You don't have to have the answers, you don't have
to have the final word or anything. You just have
to join the conversation, whether it be a question, a
(00:57):
hot take on something, or maybe even not not so
hot take, just a bit of a reckon. So give
us a call on Weight one hundred eighty ten eighty,
and don't forget the text nine to nine two. By
the way, just looking ahead for the Parents Squad, we've
got a brand new guest coming up after five o'clock.
It's Mary Willow. We're talking about basically setting boundaries and
the difference between parenting now and I don't know, twenty
(01:19):
thirty forty years ago, and whether you know who's got
it right anyway, Look, I's reading something. I'm always reading
things about property. I guess in preparation for the show.
But you keep hearing the expression, well, I keep hearing it. However,
it's certainly a familiar expression property market reset, that the
(01:40):
market's undergoing a bit of a reset at the moment.
But what is the property market reset? Is it simply
just a correction from the craziness of post COVID prices
or is it something? Is it something more? Is it
a change in people's appetite? Is it, you know that
(02:00):
an increase in people want it or decrease and investors
or first home buys. What does it actually mean? What?
What does normal look like? Anyway? I mean, broadly speaking,
if I think of the mcgut reaction to it, as
I mentioned at the start of the show, if I've
been through a property reset and I'm not a player
in the game apart from owning owning our house, it's
(02:23):
the switch for me would be there was a time
when I felt guilty not having an investment property, and
now I'm relieved a ton of an investment property. So
that's been my property reset. I mean, look, so what
does it look like and is it something that the
average person should be worried about? Give us your call
give us a call. We'd love to hear from you.
(02:44):
On eight hundred and eighty ten eighty text nine two
nine two. I mean the simple the questions would be
what is it? What is actually happening if there is
a property reset? But yeah, what does it mean for you?
And when? Is it an instant thing quick or is
it something that's going to take a while anyway? Joining
us to discuss this and the surrounding issues of it.
He is managing director of o Pea's Mortgages and his
(03:07):
name is Peter Norris and he's with me. Now get Peter.
How are you going?
Speaker 4 (03:09):
Yeah? Good, thanks? Thanks, senving me on.
Speaker 3 (03:13):
How we do There's a term we're hearing a lot,
isn't it? Property market reset?
Speaker 5 (03:17):
Is it? Yeah?
Speaker 4 (03:18):
Yeah, there's a little bit of it going on, well,
actually quite quite a bit of it. I think I
think that it's probably, you know, the arguably word of
the year in this sort of with what we're talking
about in terms of you know, in terms of the property.
There's a lot going on with property. You've got a
lot of uncertainty, particularly with the election at the end
(03:38):
of the year. What's going to happen? A capital gains
tax are going to come in things like that, impacting investors.
Speaker 3 (03:42):
But I guess it's because initially one might argue there's
there was a reset going on in terms of prices
because we had the incredibly cheap money. I mean, the
really obvious point is incredibly cheap money and very expensive
houses eventually where people you know, are having to cope
(04:03):
with whether they paid too much one or twenty twenty.
Speaker 4 (04:06):
Yeah, we've got some really quite interesting data around this.
If you look back to sort of nineteen ninety two
and assume that property prices the trend just goes. It
has been trending upwards pretty consistently since since then, and
if it had continued that trend, what we would see
is that property prices would be about nine times what
they were in nineteen ninety two. Through COVID, we saw
(04:30):
its spike way off trend right, It went way higher
than what you would would have expected, and it got
almost to that nine times. Since about twenty twenty four,
it's kind of plateaued and been pretty stagnant since then.
It's sitting about eight point eight point six times what
it was then, so it's not far off that that trend.
Speaker 3 (04:47):
We would assume that point six times. What's the rule
of thumb?
Speaker 4 (04:50):
Because the rule of what it was back in nineteen ninety.
Speaker 3 (04:52):
Two, okay, because the other rule of thumb that we well,
when I started doing the property show backs, when I
was doing when I was sharing the hosting of it
with Tim Rocksborough, the rule was sort of like the
property market doubles every eight years. Then it got pushed
out to every ten years, and then you realize, actually,
exponential growth as has been it's just not possible really
(05:13):
because it just would where property prices got to. It
was just didn't sound feasible. Yeah, we're backed off that.
In fact, now I've heard this is not the first
time I mentioned it, but I had a chat with
a young financial advisor who was his modeling was like
it might not double and took for another thirty years
and so but yeah, so maybe is that the reset?
Speaker 4 (05:35):
I don't know, Well, I mean, I think you argue
that the thinking of a reset is that things don't
move forward the way that they have in the past.
Really what the reset is? So are we going through
that now? Really we won't know until we look back.
But what we do know is that there's we saw
very much off trend through COVID. It's fallen significantly since then,
(05:58):
there's plateaued for a few years. You would have expected
what we were hoping to see a bit of growth
this year, but then obviously with the with the Trump
shenanigans and with the election coming up, in the uncertainty
around that, I think that this year has just become
a little bit flat.
Speaker 3 (06:14):
Yeah, because I would say that the making this up
as a go along, of course, But my rough reckon
would be that there's the person who's the enthusiast for
the market who would probably want to think that the
reset is simply something that's been happened in price, and
that once we get the price right, things will go
back to that pattern again. So you know, you buy
(06:37):
a property, you leave, ridget whatever you do, and eventually
the equation works out where it's a good investment for
you because we make the capital gain after twenty thirty,
forty years or whatever. And that would be the enthusiast
version of it. But the other, the more cynical view
would be it could be quite some time before New
Zealanders fall in love with that model again, couldn't it.
And I think that's one of the other questions.
Speaker 4 (06:59):
Yeah, I think both of those are are are good point.
We as a business obviously lean towards the pointed in.
Speaker 3 (07:05):
That it's just a blip.
Speaker 4 (07:08):
It's just a bliff, it will come right.
Speaker 3 (07:11):
I mean that thing is that might be it. It
might just be that because property is a really I
mean the reason it's a valuable as set and people
everyone needs. It's not going to go out of fashion.
Wanting a house, wanting someway to live, and I guess
you know, so that would be the argument you'd want
to lean towards them.
Speaker 4 (07:27):
Yeah, absolutely, And I mean if you're a first time
buyer at the moment, it's a good time. It's twenty
eight percent of the market right now. It's probably the
highest recent reports from Totality, so it's probably the highest
it's been for quite some time. It's the first time
buyers are in there.
Speaker 3 (07:38):
Yeah, although see that makes it sound like it's because look,
we're very lucky when we bought our house. I'm not
going to bang on about it, but we got it
for a very good price, just brought it direct from
the landlord, no competitive process, So I know I was
very lucky, but there I felt it was it was
(07:59):
a no brainer buying but buying a property is it's
still expensive because I think that idea is like the
first time buyers are and makes it sound like everything's cheap.
But it's still a significant investment, isn't it?
Speaker 4 (08:10):
Oh for sure? Absolutely? Yeah, Yeah, it's a yeah that
whole it's a buyer's market. Yeah, it's buyas market, but
it's still a lot more expensive buyers market than it was. Yeah,
it's eight and a half times what it was in
ninety two, so it's still a lot more expensive.
Speaker 3 (08:21):
So we'd love to have for you on this. I
w eight hundred eighty t and eighty If you buy
into the fact, well, I don't know how you can
deny there is some sort of reset going on it
is it something that's gone on and it's just going
to get started again. We'd love your calls on it
as well. I wait, one hundred eighty t and eighty.
But what is the property market reset? As you would
understand it if you're looking at the market and thinking,
(08:42):
but what would it also what would it take if
you're not in it? Well, for instance, as I said,
I went from a point of view of not being
in the market. So obviously I can't be too smug
about any opinion I have. But there was a point
where I was feeling guilty that I hadn't got an
investment property, and now I'm relieved I haven't. Have you
been like that? And do you anticipate that there will
be a time when you'll suddenly be like, oh God,
(09:03):
I should have seen this coming. Now I'm feeling guilty
that I happened. Actually, what are you seeing in your business, Peter,
with regards to people's enthusiasm for investing.
Speaker 4 (09:14):
Yeah, we've we've seen a little bit of a drop off.
We've still still got plenty of inquiry coming through, Still
lots of people buying. It's sort of nationwide in terms
of clientele and sort of main centers. In terms of
what they are buying with us, it's predominantly down that
new build, a new build path which tends to be
exempt from a lot of these restrictions that come in. So, yeah,
(09:35):
we're still so active.
Speaker 3 (09:36):
What are the sort of new what are the sort
of new builds that are attracting investors?
Speaker 4 (09:41):
It's all about it's all about where the numbers work, right,
So it's it depends on whether your affordability sits in
Auckland or outside of Auckland, and typically sort of townhouse
or standalone depending on location.
Speaker 3 (09:52):
Well, actually, I don't want to get distracted by the
whole apartment sort of townhouse thing and all that, because
but there is there's what is the sort of optimum
sort of property that people are looking for from an
investment point view.
Speaker 4 (10:06):
Most of our clients would be sitting in around that
sort of six hundred and nine hundred k kind of
mark two three bedrooms.
Speaker 3 (10:13):
I know they're looking for something that's ultimately going to
be capital returning or are they looking for something that's
going to give a good rental yield?
Speaker 4 (10:21):
Now, our clients are focused on capital growth, long term
capital growth.
Speaker 3 (10:24):
Okay, yeah, okay, we want your calls on this. On
eight hundred eighty ten eighty the Great Property Reset. Oh
look now that's on making up expression the expressions the
Great property Reset. I don't know who's used that expression.
I just did then. I don't know what I was
inspired by, but people are talking about a property market reset.
What do you reckon that is? What does it mean
(10:45):
for the market and when will we get back to
something that you might recognize as being familiar eight hundred
eighty ten eighty Eric good A.
Speaker 6 (10:53):
Ageing Simon Peter Good.
Speaker 4 (10:55):
Thanks.
Speaker 6 (10:57):
You know, it's just going to be my opinion on
the homeowner. I'm not I'm not an a Bestop Order
house to live in, and I never got I was
like you, So I never got into the buying property thing.
Probably felt like I should have, but I just never did.
But I think I saw it personally myself. I'm not
claiming to be an expert on property or anything like that,
(11:18):
but just as a person, I saw this coming quite
a long time ago, and it was as it had
to happen. Because I don't think it's a property reset.
I think it's it's an income reset because the way
I see it is properties got out of reach for
the average person, so incomes just are not high enough
(11:41):
to actually afford the mortgages, and they just couldn't go
any higher. They reached the peak a peak price. It's
like putting petrol in your car. Once it gets to
ten dollars a leader, you probably got to ride a pushbike,
buy an electric car or something. So the way I
see it until wages one is wages and incomes catch
(12:02):
up to the actual property, property mortgages that you have
to take out to service them. You won't be seeing
big profits and property. And not only is there also
I think with government, government's chopping and changing and you know,
changing the rules to what taxes you may have to
(12:23):
pay if you own a property stuff. But that makes
people very nervous.
Speaker 3 (12:27):
Actually, I think that what you've just mentioned there, Eric,
I think that is one of the big problems for
the property market right now, is that is that there's
just constant political uncertainty with what's being promised or threatened
depending on your side of the coin, what do you reckon.
Speaker 4 (12:45):
Yeah, yeah, I absolutely agree with that. And actually there's
a point in there that you've made around income disparity
versus property prices, which I think you're not too far
off on because if you think about what the banks
are willing to lend at the moment, they're capped. Reserve
banks says that you cannot borrow any more than six
times your income to buy an owner occupied or seven
(13:05):
times by investor. So if that's your cap, how can
they ever go above that?
Speaker 3 (13:11):
Yeah, it's cash and especially if for young people wanted
to get into their homes early, that's what are you
limited to sort of a shock out? And I don't
want to mention any particular town, but you know, we
all have a place where we imagine as a cheaper option.
Speaker 4 (13:24):
But yeah, but if most of us buyers have a
ten percent deposit and they're operating with a max ceiling
of six times their.
Speaker 3 (13:30):
Income, is that six times your net income.
Speaker 4 (13:32):
Six times your gross income?
Speaker 3 (13:33):
Okay? I think, oh, well, that's slightly a relief.
Speaker 6 (13:36):
But I mean if you look back, look back into
the eighties, and it was you know, the houses were
only twenty thousand dolls Okay, the interest rates were high,
but the interest you paid on twenty thousand dollars, even
if it was a high interest rate and income was less,
was still way less than what you pay for what
you have to borrow.
Speaker 4 (13:55):
Now you're talking about that's.
Speaker 3 (13:58):
A while ago, since it was twenty grand, I think,
isn't it, Eric? When are you thinking?
Speaker 6 (14:01):
You're not think you're talking you're talking the eighties?
Speaker 7 (14:03):
Mate.
Speaker 3 (14:05):
We think we're longer ago than the aren't we longer
ago than the eighties?
Speaker 4 (14:09):
Maybe you probably get a house of twenty now.
Speaker 6 (14:13):
Yeah, well, I remember how it's been being around twenty
grand back in the eighties because I was going to
buy one because yeah, young fella and a she, I
went a little bit of money on Golden Kiwi and
I was to buy I wish ahead of what was.
Speaker 3 (14:26):
A little bit of money on Golden Kiwi back in
those days.
Speaker 6 (14:29):
Twenty five thousand.
Speaker 3 (14:31):
Wow, that was a fair whack. What did you do
with it? And that was did you blow it?
Speaker 6 (14:35):
It was myself and myself and my partner at the time,
But yeah, I was only eighteen year old, boys, so
you know, I kind of wished I had a poor
a house instead of putting it in the bank and
trying to keep it for saving.
Speaker 3 (14:47):
What happened to it? You to spend it?
Speaker 6 (14:50):
Oh, I invested it in different little things I was
doing in projects and what not.
Speaker 3 (14:54):
Yet, yeah, probably it sounds like it a more interesting
tale there, Eric, But yeah, twenty five grand back.
Speaker 8 (15:02):
It's fun.
Speaker 6 (15:03):
Good, it's fun and he's young, fello.
Speaker 3 (15:05):
Good good, Thanks for your call. Actually, the other thing
that came to mind there wasn't It was about the expectations.
So I think of my kids about how hard it's
going to be for them to buy their first time,
whereas there was a time I think when you just
assume that if if young people wanted to buy a house,
(15:27):
it's just something they'd end up doing and everyone can
do it. But it doesn't quite feel like that now
it does it too much?
Speaker 4 (15:34):
No, I definitely agree with that. I think it wasn't
too long ago that I would say that that kind
of was that right of passage that you just.
Speaker 3 (15:40):
Yeah, if you want to buy a house, you just
go ahead and do it, and go save up a
bit and then put put an offer down on the
where you go. Whereas now it's like, but have you
got the income? Have you got the savings?
Speaker 4 (15:52):
Yep? Can you say have you got bank of mom
and dad? Have you got someone and that can that
can help you out?
Speaker 3 (15:55):
It's it's yeah, well we're taking your calls on eight
hundred and eighty ten eighty. What does the what does it?
What does it mean? When we'll talk about a property market?
Reset haws, it happened? Is it still happening? And when
will we know if it's over? If it may already
be over? Of course, oh, e one hundred and eighty
ten eighty. I had a bunch of texts to get to.
(16:17):
But you can jump the cubey giving us a call
on that phone number. My guest is Peter and no Irris.
He's managing director at op Pair's Mortgages. Man we'll be
back in just a moment. It's twenty three past four. Yes,
News Talk said be this is one with radio show.
My guest is Peter and no Iris, he's managing director
at Ope's Mortgages. And we're talking about what is a
property market reset? Because that's the word we hear a lot,
(16:38):
and you know, what are your reckons about what it's
going to where we're going to be at So I'm
fumbling around because there's so many different ways of looking
at it. How long it's going to last? It, was
it something that instantly happened? Have we already had it?
Are we undergoing it? And what's the market going to
look like when it's all over? Some people might say
(16:59):
it's just a constant evolution and at the moment we're
just going through a bit of a state of flux.
But I do like the idea that we have. I
just like I do think there is something of a
reset going. Actually, do you agree with that, Peter? When
I've framed it like that, do you think it's there
is a reset? Going on, or do you think we've
had it and we're now just working out, you know,
where we go from now.
Speaker 4 (17:18):
I think that we're resetting off a few years of
abnormality off the back of COVID, Right, Cavid. COVID was
what was that worthy and unprecedented? We saw proper prices
really read skyrocket. We're seeing it come back off the
back of that. So I think fundamentally, yes, there's a
little bit of a reset going on, but I don't
think it's a ingrained new way of.
Speaker 3 (17:39):
I think that, you know, the biggest problem. I think
that would put a lot of New Zealanders off. Obviously,
if you're an expert property investor and you understand the market,
you know what to factor in terms of the risks
and what sort of oscillations there are going to be,
and can you weather whatever storms are coming. But I
think the way I would see it from a step
(18:00):
back is that for many people without a I don't
mean this in a bad way, but without you didn't
have to be a rocket scientist. You had to be
brave and you had to work out your numbers and
you went for it. You know, if you wanted to
be an investor, like, how much capital have we got
in our house? Talk to someone who knows what they're
talking about, and back yourself and go for it. But
(18:21):
now we've got you know, we've got politics, and we've
got talk of stamp duties and wealth taxes and capital
gains taxes, and I just have this suspicion that at
some stage in New Zealand we're going to have to
get some sort of political certainty back, because otherwise there's
(18:41):
just this constance circling fear and politicians ruining people's lives,
whether you're a renter or an owner, occupier or an investor.
Speaker 4 (18:53):
Yeah, politicians ruining life sense to be a global thing
at the moment. I think that's the uncertainty that we've
had of political political uncertainty that we've had over the
last you know, seven eight years. We've had as investors,
you've had capital gains tax throwing around for a long time.
(19:13):
You've had reserved bank changes in terms of regulatory changes,
how much you can borrow, how much you can buy for,
whether you buy a new order in existing whether tax
is impacted. There's been a huge amount of uncertainty, and
we've got that again now heading into the back end
of this year. So yeah, I do think that that
is having a big part in it.
Speaker 3 (19:34):
What sort of For instance, there are some issues which
I don't think should really matter, which would be see,
I don't think of capital gains tax should make any difference.
And the reason is because I turn up to work
and I get taxed, but I still turn up to
work because I want to make money. If I'm a
(19:55):
property investor, I want to make money. The fact that
I might have to pay tax on a profit doesn't
mean I don't want to make that profit. I wonder
if the capital gains tax is the least of our
worries when it comes to certain you know, the things
that might affect a market.
Speaker 4 (20:09):
And I tend to agree with you with that. In
the long term, what I think we're seeing right now
is that uncertainty is leading to indecision. Yeah, and I
think ultimately, in the long term, you're absolutely right, people
will it will just the reset will be that things
will just return, that will become part of the norm
and factored into the numbers you see in Australia, you
see in lots of other countries.
Speaker 3 (20:27):
I think that the problem is is that the reason
as well and in just what you've said, the reason
there's additional uncertainty around capital gains is because some of
the ring fencing aspect. So at some stage I just
sort of feel we have to grow up. And when
I mean grow up, there's not a cracket anyone in
the property market. I mean politicians have to grow up
and we have to work out that there are certain
(20:50):
rules around business investments, and tax deductibility is one of them.
That's the one I think, you know, with the ring
fencing and all that nonsense. It's just bonkers.
Speaker 4 (20:59):
That's the one that makes a ridiculous cash flow impact
to an investment, which makes no sense.
Speaker 3 (21:05):
Yeah, do you think actually? I mean that's the thing.
You were gambling on an election result, aren't you, And
you're gambling on you know. Okay, this this party wants
to have a wealth text. This party wants to have this.
How much influence they're going to have? I don't know,
one D ten eighty. Let's take some more calls on this.
I've got a bunch of texts to get to on
this as well. John.
Speaker 7 (21:25):
Hello, Yeah, gooday, good thanks. Hey, you're just thinking about
the houses and stuff. Another thing that I think's going
on at the moment is like the price of building
is just crazy high in New Zealand, so a lot
of the builders aren't doing the speakerings that that sort
of three or four years ago they were getting built,
(21:47):
and so then we're not putting a lot of houses.
They're getting built. But growth is going to keep moving
so at some stage and he's going to be a
demand again, like a high demand. I think that the
growth of people coming in and the demand for housing
(22:07):
will have to take off, Like.
Speaker 3 (22:11):
What's going to What's what's going to take for that
to happen.
Speaker 7 (22:14):
Well, there's going to be such a demand for houses,
so more people are going to keep coming into the country.
It's under turning again where more people are coming into
the country than going out and houses aren't getting built
because speak homing was a lot to do with the
amount of houses that were getting built was through speaks,
you know, So people were building houses and they were
getting sold especially in the demand and a lot of
(22:36):
houses are getting built, but not a lot of houses
are getting built now.
Speaker 4 (22:39):
Yeah, it depends on it depends on where you look
where you're thinking about that. I've got, you know, idea
with lots of lines who are doing who are doing
spek builds, and you know that we you know, sort
of buy uh you know, you build it by the
land to build the house and sell it before it finishes.
So there's still lots of lots of people that are
that are doing that, particularly in the regions. I think
what you're seeing in the in the centers as developers
(23:02):
buying up the land sort of putting you know, more
townhouses that sort of.
Speaker 7 (23:05):
Stuff down houses there. It's just you know, like the
price of building a house now too. You know, you're
talking about how rentals have dropped and the houses the
value have dropped so that that window is almost it's
the price of buildings getting you build a new house
(23:25):
now time you're buy your land and then build on it.
It's like from twenty twenty, I was going to build
a house. I bit of land and I was going
to build a new home on it in sort of
twenty twenty, and then from that to say twenty five
had gone up forty eight percent to build it. It
was a massive increase. And yeah, I just sort of
(23:46):
I don't know, I just sort of feel that that
the comparison at the moment's not think you know.
Speaker 3 (23:50):
So do you think there needs to be a reset
on building? Do you need to think they needs to
be reset on building costs as well?
Speaker 7 (23:55):
Then yeah, I do. I do. Like I've got a
rental and I want to build a little eighty square
meter unit on the back of it, and the the
council fees are just insane, like like your council fees
for a little eight screen met the resource that's not
the resource, sorry, just the building con sent it south
was only seven thousand and three hundred four. That's that's
(24:17):
fair enough. I can keep that. But then but then
they had a what was it divin into impact constitution, see,
was another twenty five thousand dollars on top of that.
So yeah, I'm forty I'm forty two k deep and
I haven't even put a spade in the ground yet.
And it's only a little ad screw meter unit, you know.
It's just yeah, you know. And the idea is to
(24:40):
be aut to between the two and get in the
freehold the time I retire, and that's my little you know,
sort of I can retire comfortably, but.
Speaker 3 (24:50):
So still a bit more movement to go at the
moment for you before we get back to any get
back to any sort of predictable normality.
Speaker 7 (24:58):
Yeah, I don't know where the answer is. You know,
a lot of people spend a lot of money buying
these houses back when they were told you again it
now before you miss out, and you know the houses
are we knew what a lot of people were paid.
You know, they really sucked a lot. And and it's
a hard one because you know, you start the yelling
all the assets we've got. That's not a good thing either,
you know, it's I think we've got to somehow bring
(25:20):
the price and even bring in different materials. And there's
enough to bring the price of building down, but I
think a lot of the fees and and all the
interestuff that goes on top of it, because everyone's got
to be fair enough, it's just pushes the price up
so much.
Speaker 3 (25:37):
Yeah, no fair enough, John, I mean yeah, what do
you what do you make of that? You?
Speaker 4 (25:41):
Yeah, I think that. I mean, building costs got got
a hammering over the through COVID as well, right, the skyrocket,
and they come back coming down a little bit. And
then we have the oil crisis and that has its
own flow on effect into the building industry as well,
and so yeah, I think there's probably a little bit
of a reset that needs to happen there. So it
does those margins out so tight on builders and it
makes it more more doable for those speakers.
Speaker 3 (26:02):
But okay, let's take another call Ben.
Speaker 5 (26:06):
Gooday, you get out guys.
Speaker 9 (26:09):
It was my wife and my sister in law inherited
the Vanie home. It started last year. Now it's rented out.
At the moment, the rent doesn't cover the costs. We
had to top it up six thousand bucks last year.
It's just we're just worried if labour get in and
it's got a five year mortgagely find it and we're
(26:32):
worried if labor get in and get rid of the
interest deductibility, we won't be able to afford to keep it.
Speaker 1 (26:37):
Like.
Speaker 9 (26:37):
We've only got two options. Is to put the rent
up one hundred bucks a week, but we haven't put
the rent up in two years. It's below market rate.
We could probably get away with about an extra sixty
man it'll be at market rate, but that just wouldn't
cover the loss of the interest deductibility and then also
(26:58):
getting same with the capital gains tax when went into
sell them five years when the mortgage is paid off,
so we just don't know where. Well we should just
dump it now and get out before you know, the election,
or if we should just hang on to it.
Speaker 3 (27:12):
Well, I mean, you'll only be paying capital gains on
the gain that you make from when it comes in,
if there was one, and depending on that. I mean,
there's a lot of earth.
Speaker 4 (27:22):
At yeah, I mean, so, I mean there's a couple
of things in there. First off, we've got to be
treating if you're going to go down the path of
getting into investment property. And I understand that this was
more of an accidental investment situation, but if you're going
to if you're going to own investment property, it needs
to be treated like a business. And so you know,
being below market ren not not not having those rental
(27:42):
increases in line with market, not above and beyond, but
in line with market, I think is you know, you've
got to be keeping up. But then that's where having
a property manager can be helpful, because if you're doing
it yourself, then emotion gets in the way. You think
the tenant's a nice guy, so you don't put the
rent up, and then suddenly you're paying the cost of that.
So there's probably that point as well. But also if
you're only five years away from having that mortgage free,
then the interest deductibility is probably not going to have
(28:04):
much of an impact anyway, because the interest inductibility is
on the lending itself, So if you don't even lending
on it, then you're just paying games on cash flow,
which is income tax.
Speaker 3 (28:12):
Yeah.
Speaker 5 (28:15):
Yeah, well we've We've looked at a couple of things.
We've looked at it even nothing more good on our
property in order to just pay it off. But we're
revised not to do it because you know, it's ourselves
and we can still claim back esturbability, so we're revised
not to do that at the moment. But I'm just worried,
you know, by the time we are having to talk
(28:37):
for ut and then if we get seven five years
and kettle game comes in, and we would have been
better off just chucking that money into an investment fund,
because we're going to lose it, you know, we're not
going to make a new money off the next five years.
Speaker 3 (28:54):
Yeah, is it worth it? Basically saying is it worth
hanging into another five years for some sort of small
capital game? Where I'm up we have to pay text
on it if it's the wrong government.
Speaker 4 (29:03):
Its depending on what happens with depending on what happens
with the interest deductibility, would actually maybe better. It would
better increase the lending on the investment to pay down
your home, depending on what happened to the deductibility.
Speaker 3 (29:14):
Okay, so how say that? What would you do again?
You would max out your lending on the investment property
and put that into your own property.
Speaker 4 (29:23):
Down to better on your own home, which is not deductible.
And currently the investment is deductible, So as long as
that continues, you better off topping up your investment property
to pay off your home any other way around.
Speaker 3 (29:33):
Have you thought of that, Ben?
Speaker 9 (29:35):
Yeah, well we we did. We also thought about up
in the ring, but we're in the situation. The tenants
are nice guys. We've never been an issue with them.
Speaker 3 (29:43):
And yeah, it does sound like you can do something
with their mortgage though structure, So you should talk to
mortgage advisor on that, I'd say, Ben would be my guest.
Speaker 9 (29:54):
Yeah, cheers, thanks God do that?
Speaker 3 (29:56):
I mean that's first cab off the rank, isn't it.
Speaker 4 (29:59):
Absolutely? Yeah, that's what we would do.
Speaker 3 (30:01):
Actually, when you said that, I almost felt embarrassed to
have him and thought of that myself, that it's my.
Speaker 4 (30:05):
But we don't have investment. Probably, oh.
Speaker 3 (30:10):
Okay, right, we'll be back. Mimi's next. We've got a
bunch of texts to get to as well. But what
is the property reset? What does it mean? What does
it look like? When will it be over? And will
it be back to sort of systems normal when it
is over. It's twenty and a half minutes to five
News Talks d B News Talk, said B where with
Peter Nois's managing director at Opeir's Mortgages. It is talking
(30:32):
about what's what's this property market reset and what does
it look like? I've tried to ask the question a
million and one ways, probably overcooked the goose on that one.
But actually you were chatting we were chatting with Ben
just before, who had only five years left on his mortgage,
and you had a couple of thoughts just in the break, Peter,
which were a bit more blunt in terms of just
simple advice, and I think you'd be happy to share them,
(30:52):
won't you all? How I'll tend your microphone so get can.
Speaker 4 (30:55):
Yeah, absolutely happy to share. I think what we see
a lot of is where whether it be accident to
investors or people who who try and do it themselves
without bringing in peace who property managers or sort of
financial advisors or anything. Is they get a tenant, they
like them, and so they'd never put the rent up,
But would you like someone enough to transfer them fifty
dollars every single week into their account, because that's effectively
(31:18):
what you're doing by not putting their rent up to
market rent. And there's certain markets where you wouldn't do that.
Maybe the rental market's a bit tough right now, so
you wouldn't do it. But just by putting it up,
you know, you can make all his pain and go
away by putting his rent up in line with market,
and suddenly he's cashlo neutral.
Speaker 3 (31:35):
Yeah, And I think because there are two sides that
you either have a good tenant and you want to
keep them, that's one argument. But if you've just got
a good contenant and you want to make it nice
and cheap for them because you like them so much,
you need to be aware that you are it's probably
spending more on your goodwill with them than you might
be on the Christmas present for your family members.
Speaker 4 (31:53):
Yeah.
Speaker 3 (31:53):
Absolutely, Yeah, this is all guess work. Guys, nobody knows
what the bloody you happen regarding the property market. It's
not rocket science. Well of course it's all guests work.
We wanted what you guess.
Speaker 4 (32:06):
But if it's all guesswork and it's not rocket science,
then then what's the answer.
Speaker 3 (32:10):
Yeah, yeah, there would have been a more useful text
extra John if you just texted us what they are?
What the what the answer is? Let's go to Paul
get it?
Speaker 8 (32:19):
Yeah, you get Peter and Tim. Hey, you commented be
for a gentleman to top up his mortgage so he
could then use that money on and pay get off
as private home is can you do that? Because I
doesn't think you could use that money for other purposes
other than your rental property. So what would stop me
actually topping up my mortgage and my rental property and
(32:40):
going buying a boat and then claiming the texts actibility
on that.
Speaker 4 (32:45):
Or there's two different points there. You can use the
equity in your property to top up for largely whatever
you want. It's your property. Whether or not it's deductible
or not comes down to what you're using it for.
And obviously talking to your accountant. But absolutely you can
leverage the equity to pay down your home or buy boat.
Speaker 8 (33:00):
Actually actually so, yeah, I understand you can use it
to paydown equity. But then if you want to use
if you're having to pay interest on that money, you
can't claim that interest and has tuctibility on your rental
property though.
Speaker 4 (33:15):
Now, so you can up to up to a certain value,
and it may be the initial purchase price plus costs
between now and then, or it might be a reset
of value if you've sold it into a company, or
there's some variables in there. But you definitely can, okay.
Speaker 8 (33:31):
And that's interesting that that's not my understanding of because
otherwise the purpose of the money is not for your
rental investments. It's for private use other worse, Like, you know,
I'll borrow a hundred I'll top up one hundred thousand
dollars of my rental property, and I'll use the money
for going on an overseas trip and claim the interest
and take deductibility on my rental property. I didn't think
you could do that.
Speaker 4 (33:51):
Yes, it depends if if you put cash into it
to pay down that mortgage and you're pulling it back out,
then you could argue that you're replenishing your own funds.
If you're pulling out equity from capital growth since you've
purchased it, then that's different conversation.
Speaker 3 (34:03):
So if you say, for instance, it's to make it
really easy. If you've been in the fortunate position where
you can stick half a million bucks of your own
money into a property that's cost a million so fifty
percent mortgage, you you could pull that out and charge
for whatever you want because it was your cash. But
if you've put bugger all into the property and you've
made a certain amount of equity, you can't just pull
(34:25):
whack that into a into a boat and claim the
interest on it. So it's not yet. So Paul, you've
pointed out it's not a straightforward Yeah.
Speaker 8 (34:33):
Yeah, yeah, no, I understand that situation that that makes
logical sense. Ok. Thank you for that.
Speaker 3 (34:38):
Yeah, actually, no, that's fair enough, because I must have
madd have given you said it. I thought it sounded
like no matter how how much equity you've got, you
can start using it to fund your lifestyle. Okay, yeah,
good to get that cleared up. Anyway, we've got the
end of the revenue on the line. Just kidding. It's
property speculation that's ruining people's lives. Housing is not a
(34:59):
productive commodity, and commodity CGT is fair. I mean, that's
a separate discus. But yeah, I think you'll find there
are a lot of people who are involved in investing
in property who don't actually find if CGT as offensive
as you might think.
Speaker 4 (35:11):
No, I completely agree with that. Yeah, No, I don't think.
As I said, I think looking out into the future,
and you'll be looking back and going, actually, it becomes
the new norm. It just becomes part of the numbers
you're paying tax on profit.
Speaker 3 (35:24):
Actually, that's interesting that you say that, because it's just
because it's such a political football. You know, the politicians go, oh,
we're never going to have a capital gains tax, because
it is it's complex when it comes to all capital,
but when it comes to housing, I just don't think
it's the big deal that. I don't think it's I
don't know, it just doesn't sound as catastrophic as people
(35:44):
want to make it out to be.
Speaker 4 (35:45):
No, and I actually don't think it will be. It's
just at the moment it's changed that people don't want to.
Speaker 3 (35:49):
Say, Okay, we're going to take another quick break. We've
got the one roof properly, one roof properly of the week,
and we might even be squeezing in another call. I'm
not sure we were at with the clock at the moment,
but it's what is it, Yeah, twelve minutes. Yes, news
Talk said the that I'm with Peter and Iris's managing
director Dopius Mortgage is actually just one bit of feedback here,
which I thought was quite amusing, says there's a lot
(36:11):
of money to be made in political uncertainty. Don't account
on it ending anytime soon. That's from Chris. I think
you're right, Chris. Anyway, it is that time of the day,
because it is nine minutes to five.
Speaker 1 (36:24):
The one roofed property of the week on the weekend collective.
Speaker 3 (36:28):
Now we're having a bob each way. Actually, i'll mention
what I've got a couple of properties, and we're going
to cover off what the property of the week is,
and then we might just have an honorable mention for
the one that I was thinking of being the property
of the week because it's just so old and tired.
I haven't seen carpet like that in well, actually I
had friends said carpet like that until they bowled it
(36:50):
and built a new one. But for a while they
did live in quite an old fashioned house themselves. Anyway,
The one roof Property of the Week is absolutely stunning.
How old is the building? I think it's close to
one hundred It's built in nineteen ten. It's over one
hundred and ten years old. It is two eight seven
Mirror Tai Road, Eastbourne in Lower Hut City. It's on
(37:12):
the market for the first time in twenty four years. Actually,
I'm going to hand over to Peter to describe it.
But it's a grand old lady. But where do we
go Apart from those sort of very cheap and brief words,
it's got beautiful views and everything. How would you describe it?
Landmark estate? Oh, I need to turn your microphone on.
(37:32):
There we go.
Speaker 4 (37:33):
I think this one's absolutely starting. I think it's one
of the best bit of Property of the Week kill
ones that I've seen on the show. I think there's
a bit of work to do when it comes with
a nineteen to ten property rights always gonna be something
else you can you can do it, but I think
it's it's it's immaculate, twelve hecties of land.
Speaker 3 (37:49):
Twelve hectares of land, and it's got views over to
the harbor or sea. If we can put the harbor,
I think we'd put it that way. It's got a
turret as well. You see the odd turret. I haven't
seen a turret since well there we get the odd
one round Frankton Road. I've seen here. But it's a yeah.
I mean it's of its era, isn't it.
Speaker 8 (38:07):
Yeah?
Speaker 4 (38:07):
Yeah, very much so. Yeah. I mean, if you is beautiful,
two hundred and forty square meters of property and twelve
hectares of land for a couple of million bucks, a.
Speaker 3 (38:15):
Couple of million dollars. I mean, I don't I don't
want to put it in other markets, but that is
a lot of house for two million bucks. If that's
what the expectation is. What's what do you look at
first when you're looking at it, when you look at
the house, What was it that grabbed your attention? Is
the xteria or the kitchen?
Speaker 4 (38:32):
My what grab me was the xterior. The character of
the xterior is just phenomenal.
Speaker 3 (38:37):
Yeah, but it does look like I think the timber
on the deck look like looks like it's getting a
little bit old. They probably want to be redoing that.
Speaker 4 (38:42):
So yeah, and the old wooden toilet seats that sends
you back a little while.
Speaker 3 (38:46):
Oh, that'd be a selling point, wouldn't it.
Speaker 4 (38:47):
Yeah, I think so you can probably do this a
little bit to the bathroom, but keep that.
Speaker 3 (38:50):
Yeah. Actually, the one I did want to mention if
people and if you want to get on the Google,
the house is in my Ewa. I don't even I've
pronounced it right, m O E R E w A
and the far north. It's one hundred and thirty two
State Highway one and at the front it looks like
a fishing tackle shop called the Sea Bandit and there's
(39:12):
a house behind it. But it is it Well, it's
sort of brown, criss crossed linoleum, vinyl bench tops yellow.
In fact, it does look really familiar for some reason,
you know, that sort of old nineteen fifties sort of
kitchen or something.
Speaker 4 (39:31):
Yeah, I think I think there's something familiar for all
of us in that carpet.
Speaker 3 (39:35):
The rich patent carpet with sort of matching patent wallpaper.
I don't know what's the price expectation of the one
and thirty. So if you haven't.
Speaker 4 (39:45):
Quite different to the first one.
Speaker 3 (39:47):
I mean, it's totally different, but of course it's been
a shop of many trades over the years. The shop
apparently has been decommissioned.
Speaker 4 (39:55):
I think it looks like one of those places you
might see at the end of the Netflix documentary. Really
maybe a little bit of that little bit that's somewhere
you might take someone up to that form. I'm yeah, possible,
Oh my god.
Speaker 3 (40:09):
Anyway, so you can go check those ones out. There's
a couple of addresses if you look at but the
one thirty two State Highway one in the far North
quite amazing. But in terms of a gorgeous residence of
yesteryear going back to nineteen ten. In fact, you do
wonder what it would have been like in its grand
old days, you know, in the early nineteen hundreds in
the house building it, well, how many houses would have
(40:29):
been around? Yeah, yeah, twelve was it?
Speaker 4 (40:31):
Twelve twelve hectares?
Speaker 3 (40:33):
Massive wonderful property. Go and check it out. That is
two eight seven Mura Tai Road in Lower Hut. Anyway, well,
that pretty much brings us to the end. It's going
to get onto a bunch of text, but time flies
when you're having fun. Peter what's keeping you busy at
ops at the moment, Ah.
Speaker 4 (40:48):
There's plenty going on, and the straits are always a
hot topic going up or wizardly going down, So I
think it's always It always keeps people busy changing banks
and buying property and.
Speaker 3 (40:57):
Ten second take though they're not going down anytime soon.
Speaker 4 (40:59):
Are they? I can do that and listen ten seconds.
Speaker 3 (41:02):
Okay, hey you good to see it, mate, Thanks very much,
and we'll be back with the Parent Squad. We've got
a brand new guest, Mary Willow is joining us, talking
about parenting styles evolving throughout the decades. Where's modern parenting
got it right or wrong? We'll be taking your.
Speaker 1 (41:15):
Call for more from the Weekend Collective. Listen live to
news Talk said Be weekends from three pm, or follow
the podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News Talks b.
Speaker 2 (00:11):
You just.
Speaker 3 (00:36):
Let's welcome back. This is the Weekend Collective. I'MS and Beverage,
and this is the hour where we start taking your
calls on one hundred and eighty text nine two nine two.
The way I try and describe it now is just,
you know, we invite you to enjoy the join the conversation.
You don't have to have the answers, you don't have
to have the final word or anything. You just have
to join the conversation, whether it be a question, a
(00:57):
hot take on something, or maybe even not not so
hot take, just a bit of a reckon. So give
us a call on Weight one hundred eighty ten eighty,
and don't forget the text nine to nine two. By
the way, just looking ahead for the Parents Squad, we've
got a brand new guest coming up after five o'clock.
It's Mary Willow. We're talking about basically setting boundaries and
the difference between parenting now and I don't know, twenty
(01:19):
thirty forty years ago, and whether you know who's got
it right anyway, Look, I's reading something. I'm always reading
things about property. I guess in preparation for the show.
But you keep hearing the expression, well, I keep hearing it. However,
it's certainly a familiar expression property market reset, that the
(01:40):
market's undergoing a bit of a reset at the moment.
But what is the property market reset? Is it simply
just a correction from the craziness of post COVID prices
or is it something? Is it something more? Is it
a change in people's appetite? Is it, you know that
(02:00):
an increase in people want it or decrease and investors
or first home buys. What does it actually mean? What?
What does normal look like? Anyway? I mean, broadly speaking,
if I think of the mcgut reaction to it, as
I mentioned at the start of the show, if I've
been through a property reset and I'm not a player
in the game apart from owning owning our house, it's
(02:23):
the switch for me would be there was a time
when I felt guilty not having an investment property, and
now I'm relieved a ton of an investment property. So
that's been my property reset. I mean, look, so what
does it look like and is it something that the
average person should be worried about? Give us your call
give us a call. We'd love to hear from you.
(02:44):
On eight hundred and eighty ten eighty text nine two
nine two. I mean the simple the questions would be
what is it? What is actually happening if there is
a property reset? But yeah, what does it mean for you?
And when? Is it an instant thing quick or is
it something that's going to take a while anyway? Joining
us to discuss this and the surrounding issues of it.
He is managing director of o Pea's Mortgages and his
(03:07):
name is Peter Norris and he's with me. Now get Peter.
How are you going?
Speaker 4 (03:09):
Yeah? Good, thanks? Thanks, senving me on.
Speaker 3 (03:13):
How we do There's a term we're hearing a lot,
isn't it? Property market reset?
Speaker 5 (03:17):
Is it? Yeah?
Speaker 4 (03:18):
Yeah, there's a little bit of it going on, well,
actually quite quite a bit of it. I think I
think that it's probably, you know, the arguably word of
the year in this sort of with what we're talking
about in terms of you know, in terms of the property.
There's a lot going on with property. You've got a
lot of uncertainty, particularly with the election at the end
(03:38):
of the year. What's going to happen? A capital gains
tax are going to come in things like that, impacting investors.
Speaker 3 (03:42):
But I guess it's because initially one might argue there's
there was a reset going on in terms of prices
because we had the incredibly cheap money. I mean, the
really obvious point is incredibly cheap money and very expensive
houses eventually where people you know, are having to cope
(04:03):
with whether they paid too much one or twenty twenty.
Speaker 4 (04:06):
Yeah, we've got some really quite interesting data around this.
If you look back to sort of nineteen ninety two
and assume that property prices the trend just goes. It
has been trending upwards pretty consistently since since then, and
if it had continued that trend, what we would see
is that property prices would be about nine times what
they were in nineteen ninety two. Through COVID, we saw
(04:30):
its spike way off trend right, It went way higher
than what you would would have expected, and it got
almost to that nine times. Since about twenty twenty four,
it's kind of plateaued and been pretty stagnant since then.
It's sitting about eight point eight point six times what
it was then, so it's not far off that that trend.
Speaker 3 (04:47):
We would assume that point six times. What's the rule
of thumb?
Speaker 4 (04:50):
Because the rule of what it was back in nineteen ninety.
Speaker 3 (04:52):
Two, okay, because the other rule of thumb that we well,
when I started doing the property show backs, when I
was doing when I was sharing the hosting of it
with Tim Rocksborough, the rule was sort of like the
property market doubles every eight years. Then it got pushed
out to every ten years, and then you realize, actually,
exponential growth as has been it's just not possible really
(05:13):
because it just would where property prices got to. It
was just didn't sound feasible. Yeah, we're backed off that.
In fact, now I've heard this is not the first
time I mentioned it, but I had a chat with
a young financial advisor who was his modeling was like
it might not double and took for another thirty years
and so but yeah, so maybe is that the reset?
Speaker 4 (05:35):
I don't know, Well, I mean, I think you argue
that the thinking of a reset is that things don't
move forward the way that they have in the past.
Really what the reset is? So are we going through
that now? Really we won't know until we look back.
But what we do know is that there's we saw
very much off trend through COVID. It's fallen significantly since then,
(05:58):
there's plateaued for a few years. You would have expected
what we were hoping to see a bit of growth
this year, but then obviously with the with the Trump
shenanigans and with the election coming up, in the uncertainty
around that, I think that this year has just become
a little bit flat.
Speaker 3 (06:14):
Yeah, because I would say that the making this up
as a go along, of course, But my rough reckon
would be that there's the person who's the enthusiast for
the market who would probably want to think that the
reset is simply something that's been happened in price, and
that once we get the price right, things will go
back to that pattern again. So you know, you buy
(06:37):
a property, you leave, ridget whatever you do, and eventually
the equation works out where it's a good investment for
you because we make the capital gain after twenty thirty,
forty years or whatever. And that would be the enthusiast
version of it. But the other, the more cynical view
would be it could be quite some time before New
Zealanders fall in love with that model again, couldn't it.
And I think that's one of the other questions.
Speaker 4 (06:59):
Yeah, I think both of those are are are good point.
We as a business obviously lean towards the pointed in.
Speaker 3 (07:05):
That it's just a blip.
Speaker 4 (07:08):
It's just a bliff, it will come right.
Speaker 3 (07:11):
I mean that thing is that might be it. It
might just be that because property is a really I
mean the reason it's a valuable as set and people
everyone needs. It's not going to go out of fashion.
Wanting a house, wanting someway to live, and I guess
you know, so that would be the argument you'd want
to lean towards them.
Speaker 4 (07:27):
Yeah, absolutely, And I mean if you're a first time
buyer at the moment, it's a good time. It's twenty
eight percent of the market right now. It's probably the
highest recent reports from Totality, so it's probably the highest
it's been for quite some time. It's the first time
buyers are in there.
Speaker 3 (07:38):
Yeah, although see that makes it sound like it's because look,
we're very lucky when we bought our house. I'm not
going to bang on about it, but we got it
for a very good price, just brought it direct from
the landlord, no competitive process, So I know I was
very lucky, but there I felt it was it was
(07:59):
a no brainer buying but buying a property is it's
still expensive because I think that idea is like the
first time buyers are and makes it sound like everything's cheap.
But it's still a significant investment, isn't it?
Speaker 4 (08:10):
Oh for sure? Absolutely? Yeah, Yeah, it's a yeah that
whole it's a buyer's market. Yeah, it's buyas market, but
it's still a lot more expensive buyers market than it was. Yeah,
it's eight and a half times what it was in
ninety two, so it's still a lot more expensive.
Speaker 3 (08:21):
So we'd love to have for you on this. I
w eight hundred eighty t and eighty If you buy
into the fact, well, I don't know how you can
deny there is some sort of reset going on it
is it something that's gone on and it's just going
to get started again. We'd love your calls on it
as well. I wait, one hundred eighty t and eighty.
But what is the property market reset? As you would
understand it if you're looking at the market and thinking,
(08:42):
but what would it also what would it take if
you're not in it? Well, for instance, as I said,
I went from a point of view of not being
in the market. So obviously I can't be too smug
about any opinion I have. But there was a point
where I was feeling guilty that I hadn't got an
investment property, and now I'm relieved I haven't. Have you
been like that? And do you anticipate that there will
be a time when you'll suddenly be like, oh God,
(09:03):
I should have seen this coming. Now I'm feeling guilty
that I happened. Actually, what are you seeing in your business, Peter,
with regards to people's enthusiasm for investing.
Speaker 4 (09:14):
Yeah, we've we've seen a little bit of a drop off.
We've still still got plenty of inquiry coming through, Still
lots of people buying. It's sort of nationwide in terms
of clientele and sort of main centers. In terms of
what they are buying with us, it's predominantly down that
new build, a new build path which tends to be
exempt from a lot of these restrictions that come in. So, yeah,
(09:35):
we're still so active.
Speaker 3 (09:36):
What are the sort of new what are the sort
of new builds that are attracting investors?
Speaker 4 (09:41):
It's all about it's all about where the numbers work, right,
So it's it depends on whether your affordability sits in
Auckland or outside of Auckland, and typically sort of townhouse
or standalone depending on location.
Speaker 3 (09:52):
Well, actually, I don't want to get distracted by the
whole apartment sort of townhouse thing and all that, because
but there is there's what is the sort of optimum
sort of property that people are looking for from an
investment point view.
Speaker 4 (10:06):
Most of our clients would be sitting in around that
sort of six hundred and nine hundred k kind of
mark two three bedrooms.
Speaker 3 (10:13):
I know they're looking for something that's ultimately going to
be capital returning or are they looking for something that's
going to give a good rental yield?
Speaker 4 (10:21):
Now, our clients are focused on capital growth, long term
capital growth.
Speaker 3 (10:24):
Okay, yeah, okay, we want your calls on this. On
eight hundred eighty ten eighty the Great Property Reset. Oh
look now that's on making up expression the expressions the
Great property Reset. I don't know who's used that expression.
I just did then. I don't know what I was
inspired by, but people are talking about a property market reset.
What do you reckon that is? What does it mean
(10:45):
for the market and when will we get back to
something that you might recognize as being familiar eight hundred
eighty ten eighty Eric good A.
Speaker 6 (10:53):
Ageing Simon Peter Good.
Speaker 4 (10:55):
Thanks.
Speaker 6 (10:57):
You know, it's just going to be my opinion on
the homeowner. I'm not I'm not an a Bestop Order
house to live in, and I never got I was
like you, So I never got into the buying property thing.
Probably felt like I should have, but I just never did.
But I think I saw it personally myself. I'm not
claiming to be an expert on property or anything like that,
(11:18):
but just as a person, I saw this coming quite
a long time ago, and it was as it had
to happen. Because I don't think it's a property reset.
I think it's it's an income reset because the way
I see it is properties got out of reach for
the average person, so incomes just are not high enough
(11:41):
to actually afford the mortgages, and they just couldn't go
any higher. They reached the peak a peak price. It's
like putting petrol in your car. Once it gets to
ten dollars a leader, you probably got to ride a pushbike,
buy an electric car or something. So the way I
see it until wages one is wages and incomes catch
(12:02):
up to the actual property, property mortgages that you have
to take out to service them. You won't be seeing
big profits and property. And not only is there also
I think with government, government's chopping and changing and you know,
changing the rules to what taxes you may have to
(12:23):
pay if you own a property stuff. But that makes
people very nervous.
Speaker 3 (12:27):
Actually, I think that what you've just mentioned there, Eric,
I think that is one of the big problems for
the property market right now, is that is that there's
just constant political uncertainty with what's being promised or threatened
depending on your side of the coin, what do you reckon.
Speaker 4 (12:45):
Yeah, yeah, I absolutely agree with that. And actually there's
a point in there that you've made around income disparity
versus property prices, which I think you're not too far
off on because if you think about what the banks
are willing to lend at the moment, they're capped. Reserve
banks says that you cannot borrow any more than six
times your income to buy an owner occupied or seven
(13:05):
times by investor. So if that's your cap, how can
they ever go above that?
Speaker 3 (13:11):
Yeah, it's cash and especially if for young people wanted
to get into their homes early, that's what are you
limited to sort of a shock out? And I don't
want to mention any particular town, but you know, we
all have a place where we imagine as a cheaper option.
Speaker 4 (13:24):
But yeah, but if most of us buyers have a
ten percent deposit and they're operating with a max ceiling
of six times their.
Speaker 3 (13:30):
Income, is that six times your net income.
Speaker 4 (13:32):
Six times your gross income?
Speaker 3 (13:33):
Okay? I think, oh, well, that's slightly a relief.
Speaker 6 (13:36):
But I mean if you look back, look back into
the eighties, and it was you know, the houses were
only twenty thousand dolls Okay, the interest rates were high,
but the interest you paid on twenty thousand dollars, even
if it was a high interest rate and income was less,
was still way less than what you pay for what
you have to borrow.
Speaker 4 (13:55):
Now you're talking about that's.
Speaker 3 (13:58):
A while ago, since it was twenty grand, I think,
isn't it, Eric? When are you thinking?
Speaker 6 (14:01):
You're not think you're talking you're talking the eighties?
Speaker 7 (14:03):
Mate.
Speaker 3 (14:05):
We think we're longer ago than the aren't we longer
ago than the eighties?
Speaker 4 (14:09):
Maybe you probably get a house of twenty now.
Speaker 6 (14:13):
Yeah, well, I remember how it's been being around twenty
grand back in the eighties because I was going to
buy one because yeah, young fella and a she, I
went a little bit of money on Golden Kiwi and
I was to buy I wish ahead of what was.
Speaker 3 (14:26):
A little bit of money on Golden Kiwi back in
those days.
Speaker 6 (14:29):
Twenty five thousand.
Speaker 3 (14:31):
Wow, that was a fair whack. What did you do
with it? And that was did you blow it?
Speaker 6 (14:35):
It was myself and myself and my partner at the time,
But yeah, I was only eighteen year old, boys, so
you know, I kind of wished I had a poor
a house instead of putting it in the bank and
trying to keep it for saving.
Speaker 3 (14:47):
What happened to it? You to spend it?
Speaker 6 (14:50):
Oh, I invested it in different little things I was
doing in projects and what not.
Speaker 3 (14:54):
Yet, yeah, probably it sounds like it a more interesting
tale there, Eric, But yeah, twenty five grand back.
Speaker 8 (15:02):
It's fun.
Speaker 6 (15:03):
Good, it's fun and he's young, fello.
Speaker 3 (15:05):
Good good, Thanks for your call. Actually, the other thing
that came to mind there wasn't It was about the expectations.
So I think of my kids about how hard it's
going to be for them to buy their first time,
whereas there was a time I think when you just
assume that if if young people wanted to buy a house,
(15:27):
it's just something they'd end up doing and everyone can
do it. But it doesn't quite feel like that now
it does it too much?
Speaker 4 (15:34):
No, I definitely agree with that. I think it wasn't
too long ago that I would say that that kind
of was that right of passage that you just.
Speaker 3 (15:40):
Yeah, if you want to buy a house, you just
go ahead and do it, and go save up a
bit and then put put an offer down on the
where you go. Whereas now it's like, but have you
got the income? Have you got the savings?
Speaker 4 (15:52):
Yep? Can you say have you got bank of mom
and dad? Have you got someone and that can that
can help you out?
Speaker 3 (15:55):
It's it's yeah, well we're taking your calls on eight
hundred and eighty ten eighty. What does the what does it?
What does it mean? When we'll talk about a property market?
Reset haws, it happened? Is it still happening? And when
will we know if it's over? If it may already
be over? Of course, oh, e one hundred and eighty
ten eighty. I had a bunch of texts to get to.
(16:17):
But you can jump the cubey giving us a call
on that phone number. My guest is Peter and no Irris.
He's managing director at op Pair's Mortgages. Man we'll be
back in just a moment. It's twenty three past four. Yes,
News Talk said be this is one with radio show.
My guest is Peter and no Iris, he's managing director
at Ope's Mortgages. And we're talking about what is a
property market reset? Because that's the word we hear a lot,
(16:38):
and you know, what are your reckons about what it's
going to where we're going to be at So I'm
fumbling around because there's so many different ways of looking
at it. How long it's going to last? It, was
it something that instantly happened? Have we already had it?
Are we undergoing it? And what's the market going to
look like when it's all over? Some people might say
(16:59):
it's just a constant evolution and at the moment we're
just going through a bit of a state of flux.
But I do like the idea that we have. I
just like I do think there is something of a
reset going. Actually, do you agree with that, Peter? When
I've framed it like that, do you think it's there
is a reset? Going on, or do you think we've
had it and we're now just working out, you know,
where we go from now.
Speaker 4 (17:18):
I think that we're resetting off a few years of
abnormality off the back of COVID, Right, Cavid. COVID was
what was that worthy and unprecedented? We saw proper prices
really read skyrocket. We're seeing it come back off the
back of that. So I think fundamentally, yes, there's a
little bit of a reset going on, but I don't
think it's a ingrained new way of.
Speaker 3 (17:39):
I think that, you know, the biggest problem. I think
that would put a lot of New Zealanders off. Obviously,
if you're an expert property investor and you understand the market,
you know what to factor in terms of the risks
and what sort of oscillations there are going to be,
and can you weather whatever storms are coming. But I
think the way I would see it from a step
(18:00):
back is that for many people without a I don't
mean this in a bad way, but without you didn't
have to be a rocket scientist. You had to be
brave and you had to work out your numbers and
you went for it. You know, if you wanted to
be an investor, like, how much capital have we got
in our house? Talk to someone who knows what they're
talking about, and back yourself and go for it. But
(18:21):
now we've got you know, we've got politics, and we've
got talk of stamp duties and wealth taxes and capital
gains taxes, and I just have this suspicion that at
some stage in New Zealand we're going to have to
get some sort of political certainty back, because otherwise there's
(18:41):
just this constance circling fear and politicians ruining people's lives,
whether you're a renter or an owner, occupier or an investor.
Speaker 4 (18:53):
Yeah, politicians ruining life sense to be a global thing
at the moment. I think that's the uncertainty that we've
had of political political uncertainty that we've had over the
last you know, seven eight years. We've had as investors,
you've had capital gains tax throwing around for a long time.
(19:13):
You've had reserved bank changes in terms of regulatory changes,
how much you can borrow, how much you can buy for,
whether you buy a new order in existing whether tax
is impacted. There's been a huge amount of uncertainty, and
we've got that again now heading into the back end
of this year. So yeah, I do think that that
is having a big part in it.
Speaker 3 (19:34):
What sort of For instance, there are some issues which
I don't think should really matter, which would be see,
I don't think of capital gains tax should make any difference.
And the reason is because I turn up to work
and I get taxed, but I still turn up to
work because I want to make money. If I'm a
(19:55):
property investor, I want to make money. The fact that
I might have to pay tax on a profit doesn't
mean I don't want to make that profit. I wonder
if the capital gains tax is the least of our
worries when it comes to certain you know, the things
that might affect a market.
Speaker 4 (20:09):
And I tend to agree with you with that. In
the long term, what I think we're seeing right now
is that uncertainty is leading to indecision. Yeah, and I
think ultimately, in the long term, you're absolutely right, people
will it will just the reset will be that things
will just return, that will become part of the norm
and factored into the numbers you see in Australia, you
see in lots of other countries.
Speaker 3 (20:27):
I think that the problem is is that the reason
as well and in just what you've said, the reason
there's additional uncertainty around capital gains is because some of
the ring fencing aspect. So at some stage I just
sort of feel we have to grow up. And when
I mean grow up, there's not a cracket anyone in
the property market. I mean politicians have to grow up
and we have to work out that there are certain
(20:50):
rules around business investments, and tax deductibility is one of them.
That's the one I think, you know, with the ring
fencing and all that nonsense. It's just bonkers.
Speaker 4 (20:59):
That's the one that makes a ridiculous cash flow impact
to an investment, which makes no sense.
Speaker 3 (21:05):
Yeah, do you think actually? I mean that's the thing.
You were gambling on an election result, aren't you, And
you're gambling on you know. Okay, this this party wants
to have a wealth text. This party wants to have this.
How much influence they're going to have? I don't know,
one D ten eighty. Let's take some more calls on this.
I've got a bunch of texts to get to on
this as well. John.
Speaker 7 (21:25):
Hello, Yeah, gooday, good thanks. Hey, you're just thinking about
the houses and stuff. Another thing that I think's going
on at the moment is like the price of building
is just crazy high in New Zealand, so a lot
of the builders aren't doing the speakerings that that sort
of three or four years ago they were getting built,
(21:47):
and so then we're not putting a lot of houses.
They're getting built. But growth is going to keep moving
so at some stage and he's going to be a
demand again, like a high demand. I think that the
growth of people coming in and the demand for housing
(22:07):
will have to take off, Like.
Speaker 3 (22:11):
What's going to What's what's going to take for that
to happen.
Speaker 7 (22:14):
Well, there's going to be such a demand for houses,
so more people are going to keep coming into the country.
It's under turning again where more people are coming into
the country than going out and houses aren't getting built
because speak homing was a lot to do with the
amount of houses that were getting built was through speaks,
you know, So people were building houses and they were
getting sold especially in the demand and a lot of
(22:36):
houses are getting built, but not a lot of houses
are getting built now.
Speaker 4 (22:39):
Yeah, it depends on it depends on where you look
where you're thinking about that. I've got, you know, idea
with lots of lines who are doing who are doing
spek builds, and you know that we you know, sort
of buy uh you know, you build it by the
land to build the house and sell it before it finishes.
So there's still lots of lots of people that are
that are doing that, particularly in the regions. I think
what you're seeing in the in the centers as developers
(23:02):
buying up the land sort of putting you know, more
townhouses that sort of.
Speaker 7 (23:05):
Stuff down houses there. It's just you know, like the
price of building a house now too. You know, you're
talking about how rentals have dropped and the houses the
value have dropped so that that window is almost it's
the price of buildings getting you build a new house
(23:25):
now time you're buy your land and then build on it.
It's like from twenty twenty, I was going to build
a house. I bit of land and I was going
to build a new home on it in sort of
twenty twenty, and then from that to say twenty five
had gone up forty eight percent to build it. It
was a massive increase. And yeah, I just sort of
(23:46):
I don't know, I just sort of feel that that
the comparison at the moment's not think you know.
Speaker 3 (23:50):
So do you think there needs to be a reset
on building? Do you need to think they needs to
be reset on building costs as well?
Speaker 7 (23:55):
Then yeah, I do. I do. Like I've got a
rental and I want to build a little eighty square
meter unit on the back of it, and the the
council fees are just insane, like like your council fees
for a little eight screen met the resource that's not
the resource, sorry, just the building con sent it south
was only seven thousand and three hundred four. That's that's
(24:17):
fair enough. I can keep that. But then but then
they had a what was it divin into impact constitution, see,
was another twenty five thousand dollars on top of that.
So yeah, I'm forty I'm forty two k deep and
I haven't even put a spade in the ground yet.
And it's only a little ad screw meter unit, you know.
It's just yeah, you know. And the idea is to
(24:40):
be aut to between the two and get in the
freehold the time I retire, and that's my little you know,
sort of I can retire comfortably, but.
Speaker 3 (24:50):
So still a bit more movement to go at the
moment for you before we get back to any get
back to any sort of predictable normality.
Speaker 7 (24:58):
Yeah, I don't know where the answer is. You know,
a lot of people spend a lot of money buying
these houses back when they were told you again it
now before you miss out, and you know the houses
are we knew what a lot of people were paid.
You know, they really sucked a lot. And and it's
a hard one because you know, you start the yelling
all the assets we've got. That's not a good thing either,
you know, it's I think we've got to somehow bring
(25:20):
the price and even bring in different materials. And there's
enough to bring the price of building down, but I
think a lot of the fees and and all the
interestuff that goes on top of it, because everyone's got
to be fair enough, it's just pushes the price up
so much.
Speaker 3 (25:37):
Yeah, no fair enough, John, I mean yeah, what do
you what do you make of that? You?
Speaker 4 (25:41):
Yeah, I think that. I mean, building costs got got
a hammering over the through COVID as well, right, the skyrocket,
and they come back coming down a little bit. And
then we have the oil crisis and that has its
own flow on effect into the building industry as well,
and so yeah, I think there's probably a little bit
of a reset that needs to happen there. So it
does those margins out so tight on builders and it
makes it more more doable for those speakers.
Speaker 3 (26:02):
But okay, let's take another call Ben.
Speaker 5 (26:06):
Gooday, you get out guys.
Speaker 9 (26:09):
It was my wife and my sister in law inherited
the Vanie home. It started last year. Now it's rented out.
At the moment, the rent doesn't cover the costs. We
had to top it up six thousand bucks last year.
It's just we're just worried if labour get in and
it's got a five year mortgagely find it and we're
(26:32):
worried if labor get in and get rid of the
interest deductibility, we won't be able to afford to keep it.
Speaker 1 (26:37):
Like.
Speaker 9 (26:37):
We've only got two options. Is to put the rent
up one hundred bucks a week, but we haven't put
the rent up in two years. It's below market rate.
We could probably get away with about an extra sixty
man it'll be at market rate, but that just wouldn't
cover the loss of the interest deductibility and then also
(26:58):
getting same with the capital gains tax when went into
sell them five years when the mortgage is paid off,
so we just don't know where. Well we should just
dump it now and get out before you know, the election,
or if we should just hang on to it.
Speaker 3 (27:12):
Well, I mean, you'll only be paying capital gains on
the gain that you make from when it comes in,
if there was one, and depending on that. I mean,
there's a lot of earth.
Speaker 4 (27:22):
At yeah, I mean, so, I mean there's a couple
of things in there. First off, we've got to be
treating if you're going to go down the path of
getting into investment property. And I understand that this was
more of an accidental investment situation, but if you're going
to if you're going to own investment property, it needs
to be treated like a business. And so you know,
being below market ren not not not having those rental
(27:42):
increases in line with market, not above and beyond, but
in line with market, I think is you know, you've
got to be keeping up. But then that's where having
a property manager can be helpful, because if you're doing
it yourself, then emotion gets in the way. You think
the tenant's a nice guy, so you don't put the
rent up, and then suddenly you're paying the cost of that.
So there's probably that point as well. But also if
you're only five years away from having that mortgage free,
then the interest deductibility is probably not going to have
(28:04):
much of an impact anyway, because the interest inductibility is
on the lending itself, So if you don't even lending
on it, then you're just paying games on cash flow,
which is income tax.
Speaker 3 (28:12):
Yeah.
Speaker 5 (28:15):
Yeah, well we've We've looked at a couple of things.
We've looked at it even nothing more good on our
property in order to just pay it off. But we're
revised not to do it because you know, it's ourselves
and we can still claim back esturbability, so we're revised
not to do that at the moment. But I'm just worried,
you know, by the time we are having to talk
(28:37):
for ut and then if we get seven five years
and kettle game comes in, and we would have been
better off just chucking that money into an investment fund,
because we're going to lose it, you know, we're not
going to make a new money off the next five years.
Speaker 3 (28:54):
Yeah, is it worth it? Basically saying is it worth
hanging into another five years for some sort of small
capital game? Where I'm up we have to pay text
on it if it's the wrong government.
Speaker 4 (29:03):
Its depending on what happens with depending on what happens
with the interest deductibility, would actually maybe better. It would
better increase the lending on the investment to pay down
your home, depending on what happened to the deductibility.
Speaker 3 (29:14):
Okay, so how say that? What would you do again?
You would max out your lending on the investment property
and put that into your own property.
Speaker 4 (29:23):
Down to better on your own home, which is not deductible.
And currently the investment is deductible, So as long as
that continues, you better off topping up your investment property
to pay off your home any other way around.
Speaker 3 (29:33):
Have you thought of that, Ben?
Speaker 9 (29:35):
Yeah, well we we did. We also thought about up
in the ring, but we're in the situation. The tenants
are nice guys. We've never been an issue with them.
Speaker 3 (29:43):
And yeah, it does sound like you can do something
with their mortgage though structure, So you should talk to
mortgage advisor on that, I'd say, Ben would be my guest.
Speaker 9 (29:54):
Yeah, cheers, thanks God do that?
Speaker 3 (29:56):
I mean that's first cab off the rank, isn't it.
Speaker 4 (29:59):
Absolutely? Yeah, that's what we would do.
Speaker 3 (30:01):
Actually, when you said that, I almost felt embarrassed to
have him and thought of that myself, that it's my.
Speaker 4 (30:05):
But we don't have investment. Probably, oh.
Speaker 3 (30:10):
Okay, right, we'll be back. Mimi's next. We've got a
bunch of texts to get to as well. But what
is the property reset? What does it mean? What does
it look like? When will it be over? And will
it be back to sort of systems normal when it
is over. It's twenty and a half minutes to five
News Talks d B News Talk, said B where with
Peter Nois's managing director at Opeir's Mortgages. It is talking
(30:32):
about what's what's this property market reset and what does
it look like? I've tried to ask the question a
million and one ways, probably overcooked the goose on that one.
But actually you were chatting we were chatting with Ben
just before, who had only five years left on his mortgage,
and you had a couple of thoughts just in the break, Peter,
which were a bit more blunt in terms of just
simple advice, and I think you'd be happy to share them,
(30:52):
won't you all? How I'll tend your microphone so get can.
Speaker 4 (30:55):
Yeah, absolutely happy to share. I think what we see
a lot of is where whether it be accident to
investors or people who who try and do it themselves
without bringing in peace who property managers or sort of
financial advisors or anything. Is they get a tenant, they
like them, and so they'd never put the rent up,
But would you like someone enough to transfer them fifty
dollars every single week into their account, because that's effectively
(31:18):
what you're doing by not putting their rent up to
market rent. And there's certain markets where you wouldn't do that.
Maybe the rental market's a bit tough right now, so
you wouldn't do it. But just by putting it up,
you know, you can make all his pain and go
away by putting his rent up in line with market,
and suddenly he's cashlo neutral.
Speaker 3 (31:35):
Yeah, And I think because there are two sides that
you either have a good tenant and you want to
keep them, that's one argument. But if you've just got
a good contenant and you want to make it nice
and cheap for them because you like them so much,
you need to be aware that you are it's probably
spending more on your goodwill with them than you might
be on the Christmas present for your family members.
Speaker 4 (31:53):
Yeah.
Speaker 3 (31:53):
Absolutely, Yeah, this is all guess work. Guys, nobody knows
what the bloody you happen regarding the property market. It's
not rocket science. Well of course it's all guests work.
We wanted what you guess.
Speaker 4 (32:06):
But if it's all guesswork and it's not rocket science,
then then what's the answer.
Speaker 3 (32:10):
Yeah, yeah, there would have been a more useful text
extra John if you just texted us what they are?
What the what the answer is? Let's go to Paul
get it?
Speaker 8 (32:19):
Yeah, you get Peter and Tim. Hey, you commented be
for a gentleman to top up his mortgage so he
could then use that money on and pay get off
as private home is can you do that? Because I
doesn't think you could use that money for other purposes
other than your rental property. So what would stop me
actually topping up my mortgage and my rental property and
(32:40):
going buying a boat and then claiming the texts actibility
on that.
Speaker 4 (32:45):
Or there's two different points there. You can use the
equity in your property to top up for largely whatever
you want. It's your property. Whether or not it's deductible
or not comes down to what you're using it for.
And obviously talking to your accountant. But absolutely you can
leverage the equity to pay down your home or buy boat.
Speaker 8 (33:00):
Actually actually so, yeah, I understand you can use it
to paydown equity. But then if you want to use
if you're having to pay interest on that money, you
can't claim that interest and has tuctibility on your rental
property though.
Speaker 4 (33:15):
Now, so you can up to up to a certain value,
and it may be the initial purchase price plus costs
between now and then, or it might be a reset
of value if you've sold it into a company, or
there's some variables in there. But you definitely can, okay.
Speaker 8 (33:31):
And that's interesting that that's not my understanding of because
otherwise the purpose of the money is not for your
rental investments. It's for private use other worse, Like, you know,
I'll borrow a hundred I'll top up one hundred thousand
dollars of my rental property, and I'll use the money
for going on an overseas trip and claim the interest
and take deductibility on my rental property. I didn't think
you could do that.
Speaker 4 (33:51):
Yes, it depends if if you put cash into it
to pay down that mortgage and you're pulling it back out,
then you could argue that you're replenishing your own funds.
If you're pulling out equity from capital growth since you've
purchased it, then that's different conversation.
Speaker 3 (34:03):
So if you say, for instance, it's to make it
really easy. If you've been in the fortunate position where
you can stick half a million bucks of your own
money into a property that's cost a million so fifty
percent mortgage, you you could pull that out and charge
for whatever you want because it was your cash. But
if you've put bugger all into the property and you've
made a certain amount of equity, you can't just pull
(34:25):
whack that into a into a boat and claim the
interest on it. So it's not yet. So Paul, you've
pointed out it's not a straightforward Yeah.
Speaker 8 (34:33):
Yeah, yeah, no, I understand that situation that that makes
logical sense. Ok. Thank you for that.
Speaker 3 (34:38):
Yeah, actually, no, that's fair enough, because I must have
madd have given you said it. I thought it sounded
like no matter how how much equity you've got, you
can start using it to fund your lifestyle. Okay, yeah,
good to get that cleared up. Anyway, we've got the
end of the revenue on the line. Just kidding. It's
property speculation that's ruining people's lives. Housing is not a
(34:59):
productive commodity, and commodity CGT is fair. I mean, that's
a separate discus. But yeah, I think you'll find there
are a lot of people who are involved in investing
in property who don't actually find if CGT as offensive
as you might think.
Speaker 4 (35:11):
No, I completely agree with that. Yeah, No, I don't think.
As I said, I think looking out into the future,
and you'll be looking back and going, actually, it becomes
the new norm. It just becomes part of the numbers
you're paying tax on profit.
Speaker 3 (35:24):
Actually, that's interesting that you say that, because it's just
because it's such a political football. You know, the politicians go, oh,
we're never going to have a capital gains tax, because
it is it's complex when it comes to all capital,
but when it comes to housing, I just don't think
it's the big deal that. I don't think it's I
don't know, it just doesn't sound as catastrophic as people
(35:44):
want to make it out to be.
Speaker 4 (35:45):
No, and I actually don't think it will be. It's
just at the moment it's changed that people don't want to.
Speaker 3 (35:49):
Say, Okay, we're going to take another quick break. We've
got the one roof properly, one roof properly of the week,
and we might even be squeezing in another call. I'm
not sure we were at with the clock at the moment,
but it's what is it, Yeah, twelve minutes. Yes, news
Talk said the that I'm with Peter and Iris's managing
director Dopius Mortgage is actually just one bit of feedback here,
which I thought was quite amusing, says there's a lot
(36:11):
of money to be made in political uncertainty. Don't account
on it ending anytime soon. That's from Chris. I think
you're right, Chris. Anyway, it is that time of the day,
because it is nine minutes to five.
Speaker 1 (36:24):
The one roofed property of the week on the weekend collective.
Speaker 3 (36:28):
Now we're having a bob each way. Actually, i'll mention
what I've got a couple of properties, and we're going
to cover off what the property of the week is,
and then we might just have an honorable mention for
the one that I was thinking of being the property
of the week because it's just so old and tired.
I haven't seen carpet like that in well, actually I
had friends said carpet like that until they bowled it
(36:50):
and built a new one. But for a while they
did live in quite an old fashioned house themselves. Anyway,
The one roof Property of the Week is absolutely stunning.
How old is the building? I think it's close to
one hundred It's built in nineteen ten. It's over one
hundred and ten years old. It is two eight seven
Mirror Tai Road, Eastbourne in Lower Hut City. It's on
(37:12):
the market for the first time in twenty four years. Actually,
I'm going to hand over to Peter to describe it.
But it's a grand old lady. But where do we
go Apart from those sort of very cheap and brief words,
it's got beautiful views and everything. How would you describe it?
Landmark estate? Oh, I need to turn your microphone on.
(37:32):
There we go.
Speaker 4 (37:33):
I think this one's absolutely starting. I think it's one
of the best bit of Property of the Week kill
ones that I've seen on the show. I think there's
a bit of work to do when it comes with
a nineteen to ten property rights always gonna be something
else you can you can do it, but I think
it's it's it's immaculate, twelve hecties of land.
Speaker 3 (37:49):
Twelve hectares of land, and it's got views over to
the harbor or sea. If we can put the harbor,
I think we'd put it that way. It's got a
turret as well. You see the odd turret. I haven't
seen a turret since well there we get the odd
one round Frankton Road. I've seen here. But it's a yeah.
I mean it's of its era, isn't it.
Speaker 8 (38:07):
Yeah?
Speaker 4 (38:07):
Yeah, very much so. Yeah. I mean, if you is beautiful,
two hundred and forty square meters of property and twelve
hectares of land for a couple of million bucks, a.
Speaker 3 (38:15):
Couple of million dollars. I mean, I don't I don't
want to put it in other markets, but that is
a lot of house for two million bucks. If that's
what the expectation is. What's what do you look at
first when you're looking at it, when you look at
the house, What was it that grabbed your attention? Is
the xteria or the kitchen?
Speaker 4 (38:32):
My what grab me was the xterior. The character of
the xterior is just phenomenal.
Speaker 3 (38:37):
Yeah, but it does look like I think the timber
on the deck look like looks like it's getting a
little bit old. They probably want to be redoing that.
Speaker 4 (38:42):
So yeah, and the old wooden toilet seats that sends
you back a little while.
Speaker 3 (38:46):
Oh, that'd be a selling point, wouldn't it.
Speaker 4 (38:47):
Yeah, I think so you can probably do this a
little bit to the bathroom, but keep that.
Speaker 3 (38:50):
Yeah. Actually, the one I did want to mention if
people and if you want to get on the Google,
the house is in my Ewa. I don't even I've
pronounced it right, m O E R E w A
and the far north. It's one hundred and thirty two
State Highway one and at the front it looks like
a fishing tackle shop called the Sea Bandit and there's
(39:12):
a house behind it. But it is it Well, it's
sort of brown, criss crossed linoleum, vinyl bench tops yellow.
In fact, it does look really familiar for some reason,
you know, that sort of old nineteen fifties sort of
kitchen or something.
Speaker 4 (39:31):
Yeah, I think I think there's something familiar for all
of us in that carpet.
Speaker 3 (39:35):
The rich patent carpet with sort of matching patent wallpaper.
I don't know what's the price expectation of the one
and thirty. So if you haven't.
Speaker 4 (39:45):
Quite different to the first one.
Speaker 3 (39:47):
I mean, it's totally different, but of course it's been
a shop of many trades over the years. The shop
apparently has been decommissioned.
Speaker 4 (39:55):
I think it looks like one of those places you
might see at the end of the Netflix documentary. Really
maybe a little bit of that little bit that's somewhere
you might take someone up to that form. I'm yeah, possible,
Oh my god.
Speaker 3 (40:09):
Anyway, so you can go check those ones out. There's
a couple of addresses if you look at but the
one thirty two State Highway one in the far North
quite amazing. But in terms of a gorgeous residence of
yesteryear going back to nineteen ten. In fact, you do
wonder what it would have been like in its grand
old days, you know, in the early nineteen hundreds in
the house building it, well, how many houses would have
(40:29):
been around? Yeah, yeah, twelve was it?
Speaker 4 (40:31):
Twelve twelve hectares?
Speaker 3 (40:33):
Massive wonderful property. Go and check it out. That is
two eight seven Mura Tai Road in Lower Hut. Anyway, well,
that pretty much brings us to the end. It's going
to get onto a bunch of text, but time flies
when you're having fun. Peter what's keeping you busy at
ops at the moment, Ah.
Speaker 4 (40:48):
There's plenty going on, and the straits are always a
hot topic going up or wizardly going down, So I
think it's always It always keeps people busy changing banks
and buying property and.
Speaker 3 (40:57):
Ten second take though they're not going down anytime soon.
Speaker 4 (40:59):
Are they? I can do that and listen ten seconds.
Speaker 3 (41:02):
Okay, hey you good to see it, mate, Thanks very much,
and we'll be back with the Parent Squad. We've got
a brand new guest, Mary Willow is joining us, talking
about parenting styles evolving throughout the decades. Where's modern parenting
got it right or wrong? We'll be taking your.
Speaker 1 (41:15):
Call for more from the Weekend Collective. Listen live to
news Talk said Be weekends from three pm, or follow
the podcast on iHeartRadio
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