Data shows New Zealand could be losing out on foreign capital with uncertainty around residential property rules for overseas buyers.
So what are the drawbacks to loosening property restrictions and opening borders?
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talk SIB.
Speaker 2 (00:27):
Yes, and welcome back to the show. This is the
Weekend Collective. But by the way, if you missed our
energetic panel with Wilhelmina Shrimpton and Bat brad Olsen, you
can go and check our podcast. We generally get our
podcasts up fairly quickly after each hour has concluded, so
going look for that on iHeartRadio or the News Talk
SB website. And this is the one roof radio show,
(00:48):
and we're going to give me a chat about basically
about foreign investment and what's called the Golden Visa. So
just as a bit of background for you, since twenty eighteen,
New Zealand's had a band that prohibits most non residents.
I think it's an exception for Australia, Singapore. I think
that's about it. Existing residential properties, not existing residential properties.
(01:09):
Some wealthy Americans apparently are interested in buying homes in
New Zealand. I saw some article on an international news
site saying it was the anti Trumpers who were desperate
to get out and buy houses here. But whoever it is.
And there has been some talk that the government is
considering relaxing the ban, and Immigration Minister Erica Stanford saying
talks are happening quote at a leader to leader level
(01:31):
in the coalition government, which means Luxe and Peters and Seymour,
I would imagine. And the country's revamped Golden visa program.
So far it's attracted one hundred and four visa applications
covering three hundred and forty six individuals, with other half
coming from the US. But the inability to buy a
(01:52):
house remains a hurdle for would be investors anyway, So
we're going to we want your view on that. Should
we allow them back into the market, what should the
limit be if any and joining us to discuss it.
He has resident economist at Ope's Partners and his name
is Ed mckknight and he's right here, Ed High, great to.
Speaker 3 (02:13):
Be here, Tim, How are you?
Speaker 1 (02:15):
Oh?
Speaker 2 (02:15):
Well, very good.
Speaker 3 (02:15):
Now there's just one little correction that I've got to
give yet.
Speaker 2 (02:18):
Yes, it's deliberately let's see if you picked up with
a mistake.
Speaker 3 (02:22):
I'm glad you're testing me, Tim. So you said that
anybody who's not Australian or Singapore and can still buy
a new build house actually it's a very specific type
of property. It's only large apartment complexes where the developer
has specifically applied for an exemption, and let me tell you,
there aren't that many of them. So if you are
(02:43):
unless you're Australian or Singapore and you're basically locked out
of the New Zealand property market.
Speaker 2 (02:47):
Although you could be a developer. You can be an
overseas developer and build a whole lot of things, can't
you. You can build a housing development.
Speaker 3 (02:53):
You might be able to be involved in a company
that starts developing properties, but in that case you're not
necessarily owning the properties as long term investments. But there's
a little.
Speaker 2 (03:05):
These are good points before we get into it. By
the way, you can call any time, oh, eight hundred
and eighty ten eighty. Do you think there should be
some level at which we allow wealthy foreigners to buy
a property in New Zealand. Should it be minimum five
million bucks in queens Down or should it be area specifically,
say okay, you're welcome to come here, you can buy
in this particular area or this town. Or should there
(03:28):
be a minimum spend of ten million, two million, seven million,
not at all? Give us a call eight hundred eighty
ten and eighty before I ask ed for your view
ed budget week. Have you had a good time.
Speaker 3 (03:40):
Oh, it's been a great time, tim. I've been especially
around the key we save the stuff. I hope we
get some time to dig into that because it is
absolutely fascinating what's gone in there, and it will have
a very, very large impact on people's retirement savings. I'll
give you a little, little little scenario here. Let's say
you're forty years old today and birthday. I'm not quite forty,
(04:04):
but we'll get there of very Actually.
Speaker 2 (04:05):
No, I didn't mean you. I that someone out there
is forty today, so I think we've covered them. Yeah.
Speaker 3 (04:10):
So let's say you're forty today and you earn eighty
grand a year. You got twenty five grand in your kiwisaver.
Under the old rules, you'd have about five hundred K
by the time you get to retirement. Under the new rules,
you'll have just over six hundred k because you're going
to be contributing more over the next twenty five odd years.
So that extra one hundred thousand dollars a year, or
two hundred thousand dollars if you're a couple and there
(04:32):
are two of you in the household. That's going to
have a really large impact on people's ability to live
a pretty decent retirement, and hopefully that'll take some pressure
off the system as well in terms of the government
spending on the pension system and NZ super.
Speaker 2 (04:49):
Yeah, that's in fact, I was at a conference earlier
this week which was for there's a company called Concilium
who are launching a new kiwisaver fund, And okay, I
admit there was some fairly high level stuff whereas like,
excuse me, can I go? My brain is full. Some
of the modeling about just the difference it can make
when you stick in three or four percent, and if
you're in a fund that is better performing than others,
(05:11):
the difference it can make, especially for someone who starts
when they're say thirty or thirty five, it's big. It's
big bucks, isn't it.
Speaker 3 (05:18):
It's substantial. And so even if we think about, well,
how much extra could you spend in retirement for a couple,
these changes should give them about an extra ninety dollars
a week, depending on how much you earn, but it's
going to be pretty significant by the time you stop working.
There It's actually quite funny. We were just talking off
here that my fiance Angela, she is a financial advisor,
(05:39):
and was at that conference, and we were sitting at
home and she said, is Tim Beveridge speaking at the conference?
I was like, I don't think so. He might just
be announcing it.
Speaker 2 (05:51):
Yeah, that's right. Yeah, they had no They had people
like Andrew bascand he's one of my regular contributors on
from harbor Asset, and a bunch of people who knew
a lot more about it than I did. So I
was just the MC for it. But hey, look on
the property thing, there were there any particular would property buyers,
(06:11):
investors agents, would they have been looking for anything in
the budget in particular? Or because it didn't seem that
there were there any headlines to be gathered. The main
thing is the thing we're going to discuss about the
foreign investment in the Golden Visa? Was there anything that
we should have been looking for? Do you think in
the budget for property?
Speaker 3 (06:28):
Well, I think real estate agents, especially those operating at
the top end of the market, certainly would have been
wanted to see the relaxation of those rules. I was
a little bit surprised that we haven't got a mention
from that, especially because we've been talking on us ZB
for probably the last four or five months about this
potentially happening. Real estate agents making noises, So a little
bit surprised there. I'll tell you one thing that I
(06:52):
kind of wanted out of the budget now that we're
talking a lot about kiwisaver. The good thing about these
new rules, in terms of contributing four percent as opposed
to three percent, getting more money out of your boss,
that's really good. If you are somebody who is planning
for their retirement twenty years down the road, that is
going to make a huge difference. These new rules are
(07:12):
not going to make that much of a difference to him.
For first home buyers, because if you're putting away just
an extra one percent of your income, yes it helps,
Yes it adds up a little bit, but it doesn't
make that much of a difference. Over three or four years.
You're getting a little bit more from your boss, but
you're getting a little bit less from the governor. That
that kind of cancels out any large effect. So if
(07:34):
you're investing for twenty years, great, But if you are
a first home buyer, these changes aren't really going to
help you. So a couple of things I've been thinking
about as I was driving here about my budget wish list.
I think it would be really good if your employer
contributions to kivsaver were tax seductible. So a lot of
people probably don't catch this, but if you and will
use simple numbers just because it's simple from a simple brain.
(07:57):
Let's say you earn one hundred thousand dollars a year
and you currently contribute three percent to your keivsaver. So
you put in three grand and then your boss puts
in three percent. That's three grand, but his three k
is taxed. So actually, while they're putting three percent in,
you raally only get two thousand dollars or two percent
once your once your boss has paid the extra little
(08:19):
bit of tax there. So if those rules would change,
that would certainly help first home buyers build up their deposit.
That's one thing that I thought, Oh, that could help.
Speaker 2 (08:28):
What about property wise? Property related?
Speaker 3 (08:31):
Property related? I think it would be very interesting to
have a discussion about bringing back ring fencing. So back
in the day before the labor government got in twenty seventeen,
if you made a loss through your investment property. You
could then deduct that against your income for tax purposes.
So basically let's say that I are.
Speaker 2 (08:50):
You in favor of that.
Speaker 3 (08:51):
By the way, I'd love to see that come back,
because it does.
Speaker 2 (08:54):
Seem like that suits your interests as someone who's involved
with property.
Speaker 3 (08:57):
Oh well, no, it actually would, because it'd be a
it'd give a tax benefit for property investors who were
at the very very early stage of investing where the
rent may not cover all of the costs that are
associated with that property, and so they're effectively negatively geared.
But at the moment, let's say that you earn an
income and you're paying tax on that. If you decide
(09:20):
to start any business that makes a loss, well you
can deduct that against your salary if you're a sole trader.
But with property you can't do that whereas you used
to be able to. That's the only thing I could
really think of that a property investor might want.
Speaker 2 (09:34):
Well, let's get onto the Golden visa thing, So we
want your cause on this eight hundred and eighty ten eighty. Now,
just so people know, the Golden Visa, as far as
I understand is it basically enables wealthy individuals for an investment.
I think of five million bucks they can then they're
eligible for residency, which will then allow them to buy houses.
(09:56):
But the question is around extending those rules because you
know there are a lot of wealthy people who want
to come and spend some time in news along. Should
we allow them to buy proper Actually, I'll go hot
on this one before you climb in their head. I
don't think we need to change it. I'm not really
interested in making an exemption for wealthy people off the
top of it, because I don't know. There was a
(10:18):
complaint by it real estate agent who said that a
property had been sitting without selling for seventeen million for
a long time, and that's because no New Zealander can
afford to buy it. I don't know. It's a difficult
argument for them to get over the fence with me
and think, oh, you poor thing. But I don't want
to be jealousy. But you know exactly what you've made,
because I want to see money coming in. I like
(10:40):
the Golden visa. You invest in a business, you invest
in productivity, come in here, be a resident, buy a house.
Good on you, full stop. But outside of that, I
don't feel personally the need to change.
Speaker 3 (10:55):
What do you think, Well, I'm not totally opposed to it,
but at the right threshold. So at the most recent election,
National was talking about a two million threshold, and two
million dollars sounds like a lot of money, but when
we're talking about New Zealand houses, it's not really so.
At the height of the market back when the big
COVID boom was going on, something like eight percent of
(11:17):
houses in Auckland were selling for two million dollars or more.
If you think at some point in the future, you know,
house prices may keep going up and they may appreciate
over time. Well, if you set the threshold at two
million dollars, if we were allowing eight percent of Auckland
houses to be sold off to foreigners, that sounds.
Speaker 2 (11:34):
Like too many to me, definitely.
Speaker 3 (11:35):
But if we talk about a five million dollar threshold, well,
lots of properties sell for two million dollars in Auckland
and Queenstound, but not that many sell for five million dollars.
It's less than a percentage point?
Speaker 2 (11:48):
Would it Okay? Does what it mean? Would it influence
the market for properties that are say four and a
half million or four million or somebody say, well, if
I can just make my asking price five million in
a bit, then I've got a whole lot bigger market,
would it. Does that have a knock on effect that
it's feeds downhill a little bit?
Speaker 4 (12:06):
Well?
Speaker 3 (12:07):
I think you could make that argument when your three
shold's two million dollars, you know, And I was certainly
saying before the election, Oh, if your house is one
point nine million dollars, maybe you can be able to
get over that threshold if somebody really likes it. It's
got a bit of land and they see some potential
in it. I think if you take the threshold up
to five million dollars, yeah, it might have a knock
on effect to you know, a four and a half
(12:27):
million dollar house. But we're talking about a few houses.
It's not a massive number at that point, whereas that
two million dollars or even at one and a half
a day have a big impact.
Speaker 2 (12:37):
Just to be argumentative, I think we like to go
on five or ten or fifteen. I'm going to go eight.
I set my but what do you reckon? Oh, eight
hundred and eighty ten eighty should we relax the foreign
buyers ban? What do you like the fact that actually
the market slowed down for a variety of reasons. Not
great if you're a property investor necessarily, but the market
(12:58):
is gradually becoming a bit more accessible. So what do
you think would you be concerned about a foreign buyers
ban being lifted lifted or loosened. Let's get into it,
shall we, Steve Hi?
Speaker 4 (13:09):
Yeah, goody, do you know what? No offense, mate, But
you suffer from the same thing a lot of here
we suffer from. And you have that sort of you
have your your blinkers on, your roasting and glasses about
New Zealand and and and the foreigners an't.
Speaker 2 (13:25):
What's rose about my glasses? Sorry?
Speaker 4 (13:29):
Well, I think you think foreigners won't think about New Zealand,
like you're going to think you you have a there's
a special place in New Zealand your heart right where
it's not in the foreigner's hearts, right, So you're going
to have to do a little bit more than to
entice them into the country. And look, you're not going
to entice them. This is the biggest red herring. And
every time I hear it, it just it just I
(13:51):
just get so tired of it. It's like this Indian
trip and the free trade A ll the fanfare and
nothing will come of it. We're not going to see
any short term gains.
Speaker 2 (13:59):
Telling me, you don't care about fine buyers, it's you
know that we're not that much in demand, so why
do we care? Full stop?
Speaker 4 (14:05):
Well, we're basically a bunch of beggars at the moment
in New Zealand. So we have to take all the
conditions off because beggars can't be choosers. And I don't
want to take the conditions off. I would love to
keep this foreign buyers ban on and that'd be fantastic,
and I'd love to export our way out of the
out of this rupt wearing, but we're not going to
do it. The only way New Zealand can do it
(14:26):
is getting foreign buyers, and it's the only lever we
can pull to get the money.
Speaker 2 (14:32):
What about the gold I'll tell you what about the
golden the golden visa. Basically, if you want to invest
as little as five million bucks, literally you only have
to invest as little as five million dollars, you can
get residency. I mean, don't we want to encourage money
into the productive sectors rather than he had just come
and buy a house, sit on it and visit every
visited every sort of six months.
Speaker 4 (14:53):
There's nowhere to put it that's not enticing to a
foreign and wife. There's no businesses here that's going to
get them to get over here.
Speaker 2 (15:00):
Well, then why would they sell them my property? Then
if they're not interested in productive in the productive economy,
why would we let you know?
Speaker 4 (15:07):
Because New Zealand is a dairy exporting nation and it's
a scenic country that people want to have a bolkhole
to come to and stay in, like in Queenstown, then
they want to go back to the US. And also,
why wouldn't American come here. Let's say they want to
invest into I say a real estate agent's you know,
they want to start up a real estate agent's company here, right,
and they want to invest a five milk Are they
(15:28):
going to do that if there's a foreign buyers band, No,
because they're going to want to invest here and have
no conditions on foreigners buying. Because I want to go
back to the US and sell New Zealand property to
their mates. There's going to be businesses like that and
it's not going to worry.
Speaker 2 (15:45):
Let's throw it into the conversation there ed, what do
you reckon?
Speaker 3 (15:48):
Well, the main thing that I'd say is I think
my rose tinted glasses are working in The good news is,
over the last six weeks we have had more people
apply or just as many people apply for that Golden
visa as we've had in the previous two and a
half years. So the good news is there is a
lot of interest in people putting money into New Zealand
at the moment, about half of them I believe coming
(16:10):
from the US, other interests coming from China and Hong Kong.
But let me ask you this, Steve, if we were
to relax the rules on foreign buyers, where would you
draw the threshold. Would it be at two million dollars
five million dollars or would you not have a threshold
at all in terms of what they could spend.
Speaker 4 (16:26):
I wouldn't have a threshold. I would just put a
massive stab duty on because they're going to pay it.
New Zealand is such an enticing place to come and
live if you want to buy a resident residential property
is the key word. They're not interested in.
Speaker 2 (16:38):
You accuse me of having roast into glasses on, but
you're just suddenly telling me it's such an enticing place
to live. Are't you the rolest into glasses guy, Steve,
you're all patriotic. They're saying, how beautiful we are. Good
on you.
Speaker 4 (16:50):
No, no, but Tim, I'm just trying to you said
you want to keep the buyers man on. I'm saying,
if you want to get the economy going, that's the
one lever that we got to pull. But it's going
to be unconditional because foreigners don't want conditions. Do you
think Americans are going to get the check book out
when they're looking at properties and you see all these
little conditions, They're just going to go to the next country. God,
that's what I'm just trying to say about the rose
(17:11):
tinted glasses. They're looking at New Zealand in a different way.
They're looking at more as an accounting procedure. You sort
of have your heart in it because you know you
have a special place for you. It's not the same
for the foreigners we got it.
Speaker 2 (17:23):
Is it a special place for you, Steve?
Speaker 4 (17:27):
It is that maybe I wasn't born here, so not
quite as much as it is for you. I see
it from a different perspective, actually so. But I'm just
we had the Chinese ways that came in in the
early two thousands. I always believe the Chinese don't get
enough credit for getting the economy humming. If we didn't
have them, I don't believe we would have grown to
where we are even at this point. And we got
(17:48):
to understand we need another five million in this country.
We've got probably we've got great people coming into the country,
but they're not the wealth going to get it coming cool.
Speaker 2 (17:57):
Okay, thanks for course, Steve. And despite the sort of
I think it was a veiled insult, sort of saying
I was a bit roast tinder glasses. But usually I
get hate Marl saying how are you been saying negative out?
It's such and such. So if it's an insult to
be saying you're positive about something, then I don't know.
I'm not sure where to go with that one. But
tell you what, we will take a break. You can
give your feedback on this. Do you think we should
(18:18):
allow foreign investors to buy property in New Zealand? And
if so, we're talking about loosening the restrictions. Where would
you set the threshold you can buy a property for
two million, four million, six million, eight million, Stop me,
ten twelve fourteen? Stop me yet?
Speaker 3 (18:35):
Why not make it eleven and a half eleven and
a half million?
Speaker 2 (18:38):
We have a number, oh eight hundred twenty five past four. Yes,
and welcome back to the show. Tim Beverage with My
guest is Ed mcnighty's resident economist at OPA's Partners, and
we're talking about the foreign buyers ban. There's a been
some indications from Erica Stanford that talks so happening at
a leader to leader level on whether it will be loosened,
(18:58):
and I'm sort of like, well, if it is loosened,
I think you should keep the price nice and high
because I just don't really want it. I'm quite happy
to leave it on there, to be honest. But I'm
a hypocrite because I like to think if I ever
won the Lotto, that I'll be able to that I
should be able to go and buy a property in
my choice of European countries so I can go skiing.
That's if I win Lotto. But until then, I can't
(19:20):
be a hypocrite. I can just think, like, one, let's
take some cool, shall we, josh youday?
Speaker 5 (19:26):
Yeah, Hey guys, no, good, good good yarns Hey I'll
just read Rejin the whole thing, because what we need
is gentle, gradual growth, not boom or buss. We don't
want lots of people aiming for the one thing, Like
you're not going to get enough people at those rates anyway. Like,
(19:49):
if it's about stimulating house building, then why not make
homes available for foreign contractors that are coming in to
do essential work roles that actually contribute to us building something.
(20:12):
These people would be spending between eight hundred and say
three million. But rather than just leave it open for
juggling houses around, why don't we allow better conditions for
say a non citizen to buy a house. Who is
(20:35):
saying an essential engineer or you know, has an essential job.
Why don't we do it that way and forget about
these grandparents with bake shops and bring in liquor stores.
Speaker 3 (20:50):
So, Josh, let me just jump in there. So are
you saying that when people come in overseas to build houses,
if they're a highly skilled engineer or something, what don't
these people just rent rather than wanting to buy a
house for eight hundred k, keep it for two years
while their jobs going then and then sell it when
they leave. Wouldn't they just rent instead.
Speaker 6 (21:09):
Well, you can have the option, but once you're here
for if you decide to be long more, long term
renting after three to five years is a good.
Speaker 5 (21:24):
Use of money, is it?
Speaker 2 (21:25):
Yeah?
Speaker 3 (21:26):
I get what you mean. I suppose when people are
talking about changing the property rules in order to be
able to get the country going, I think the perspective
usually is less Hay, Look, we should open up our
housing market so that we can can flog off some
houses and those those people who just sold their houses
might go and reinvest.
Speaker 2 (21:43):
I think the.
Speaker 3 (21:43):
Idea is more that in order to attract people who
have a lot of money to invest, we've got to
at least allow them to go ahead and purchase a
property when they are working here.
Speaker 2 (21:56):
Yeah.
Speaker 5 (21:56):
So what I'm hearing is they want to build something
accustom to their existing lifestyle, and if those don't exist us,
they won't they won't buy them. What I'm suggesting is
we'd have a bigger number to work with. You'd have
bigger numbers of people between the million to three million
mark as working class people that contribute to paye as
(22:23):
opposed to inviting I don't know, some plus fifty five
year olds who may own franchise stores or something, and
may have a commercial property investment, but they're not necessarily
I don't know how valuable that is to us at
(22:46):
this at this stage.
Speaker 2 (22:50):
Interesting, Yeah, and thanks josh good on you mate. Always
good food for thoughts from Joshua. I appreciate it. Let's
continue the conversation with lots of text here. By the way,
let's carry on though with Chris. Who's next today?
Speaker 7 (23:05):
Guys, how's a game?
Speaker 2 (23:06):
All right?
Speaker 7 (23:08):
Yeah, I'm a fan for overseas buyers. I think the
only proviso I can see to make it a bit
water tight is they've got to have a new builder,
you know, they've got to build something here or buy
something that's brand new rather than something sort of out
of the stock. I mean, there's a lot of jewels.
(23:29):
I don't know if you realize that there's a have
a lot of duel citizens live in New Zealand and
New Zealand. It's not their private place. We've got family
members in our family who are dual citizens of New
Zealand and the USA and they spend six months here
during the summer and six months back in the States
during the summer. But one of the things that blew
me away about them. I was speaking to his a
(23:51):
rally of mine, and I was asking him about because
he wanted to do some renovations on the house he
owns in New Zealand. And I said, well, why do
you do the renovations. Why don't you just sell the
thing and buy something else, because there's no shortage of
cash here. You get in a drift. And he said
to me, what, I don't want to sell it? He said,
because US Americans have got to pay worldwide tax. And
(24:12):
he said, if he sold his house in New Zealand,
he's got to pay a twenty percent capital gains tax
in the US.
Speaker 3 (24:17):
Oh jeez, that's quite an enormous capital gains tax, isn't it.
I understand what you're saying, though, Chris and two's are saying, well,
if you are going to go, if you are going
to move over here and bring your money, you might
as well build a new build. The only thing that
might be a downfall with that way of thinking, and
maybe you've got some ideas around this, is that if
you are going to build a highly architectural, high spec
(24:39):
house because your daddy wall bucks for a man in
you've got lots of money to come over. I knew
that musical joke would get you to you'd enjoy that one.
It takes a long time to build. Some of these
really architectural houses might be a year, two years. Some
builds can take even longer than that. And if you
are wanting to relocate over here, do you really want
(25:01):
to wait one year, two year, three years to find
the site, build the house, and then find move in.
Speaker 8 (25:06):
Yeah?
Speaker 7 (25:06):
Yeah, I think you might be surprised at how much
thought these people put into it. I know that these
family members are ours in the US who bought here
probably about five years ago, but they looked at other
countries and they look for at least a couple of
years before they made a decision. So you know, it's
not a light decision these people make. I think, you know,
(25:26):
waiting for something to be built, you know, could be
no big deal.
Speaker 2 (25:31):
Okay, maybe you're up any price limit. I mean, this
would be one thing to buy a nice new build
that's a bit partion, you know, with the latest architectural
features and all that. And it's another thing to go
and buy three properties in Stonefield, which is a Fletcher's
development and take those out of the Kiwi potential first
time buys. What do you reckon?
Speaker 7 (25:50):
Well, I wouldn't want them buy and three of them,
I mean, you know it's got to be some own occupier.
I would wouldn't be I wouldn't be having them here
as investors.
Speaker 2 (25:59):
Okay, you know that's actually that's that's reasonable, Good Christmas.
Speaker 3 (26:03):
You know it's surprising though, Tim. So we've had three
callers today, Steve, Josh, Chris, and I am amazed that
every single one of them was open to the idea
of foreign home buyers. Sometimes we think that, oh, you know, Kiwis,
we're not going to like it if we allow foreign
home buyers in here. Our non scientific example of three people.
It's just it's just surprised me.
Speaker 2 (26:24):
Not scientific. Yeah, this this, if this is one news,
we'd be holding that out as representative of the whole country.
That's my little job there. And it was a cheap shot,
but I had to take it. Right. Let's carry on
with some more callers. Let's go to Peter Gide.
Speaker 9 (26:39):
How are you going, guys?
Speaker 2 (26:40):
Good?
Speaker 9 (26:40):
Good, Yeah, it should be this foreign but it should
be loosen that for God's sake, when two million bucks
is too cheap. But there will be a certain limit.
Speaker 5 (26:52):
I don't want.
Speaker 9 (26:53):
One of those was probably about the late single figures,
eight seven, eight.
Speaker 2 (26:58):
Nine, what about eight and a half? I like, I
don't have just been fickled, but I think, yeah, five
fields to me, how much five feels too cheap?
Speaker 1 (27:12):
Yeah?
Speaker 9 (27:12):
Yeah, yeah, yeah, because most half decent a lot of
the half decent subject is on the north shore. Five million.
Speaker 4 (27:19):
There's a good house, but it's not it's not the.
Speaker 9 (27:22):
One house in the whole subject that's five million. There,
there's quite a few.
Speaker 5 (27:26):
There's one, there's one.
Speaker 9 (27:27):
There's one down one of the roads where I know
it's worth about five million years ago. It's up for
sale now, probably reached double figures. But you know, I
mean if it's if it's tied up, if it's tied
up to wanting to invest in this country, Yeah, well
really just loosen it up.
Speaker 2 (27:47):
And actually, Peter.
Speaker 9 (27:50):
Winston Beters is a dinosaur on this to be frank.
Speaker 2 (27:52):
Yeah, Peter, can I just jump in there? Are you
saying you mentioned if it's tied up with investing in
the country. Do you mean buy a house if you
are also doing some other economic activity? Yeah, because I
think why not? I think that's where at where we're
at with the Golden visa. Anyway, if you tip in
five million into a business, you can be resident and
(28:13):
therefore by but I think you have to be resident,
that's the catch.
Speaker 9 (28:17):
Yeah, I'll get him. Residency's easy. And this cut JV
Man is doll that we don't need here is on.
Speaker 2 (28:23):
I think what did he get? He got it straight
away just for having a lot of money and then
never moved here.
Speaker 9 (28:29):
So what he's probably been injected more money come to
what were in a lifetime.
Speaker 4 (28:34):
In some respects Okay, fair enough.
Speaker 9 (28:37):
He's been positive for the GDP as opposed a lot
of immigrants.
Speaker 2 (28:41):
What do you reckon, Peter? Sorry?
Speaker 4 (28:43):
Ed?
Speaker 3 (28:44):
The only thing I'd say when we were arguing about
is at five is at eight million. When you raise
the threeshold from five to eight, you don't actually knock
out that many houses, just a tiny tiny percentage. A
least than one percent of properties sell for more than
five million dollars in Auckland. So I think it's probably
fair enough to draw the line a nice round figure
in my view. But you know, we can all probably
argue about this to the cows come home.
Speaker 2 (29:05):
Yeah, hey, good on your Peter, Sorry, you were going
to say something else there.
Speaker 9 (29:08):
Sorry, carry on a buttud thing five seven, eight, But
eight sounds sensible. It sounds to me, it sounds like, yeah,
that's a reasonable mood. Not many people are going to
afford buying an eight million dollar houses. A few people can.
Speaker 4 (29:21):
I get that.
Speaker 9 (29:22):
But that's that's that's the realm of oh man, Well,
wish I could afford that five millions.
Speaker 2 (29:29):
You could win the power ball tonight and still not
be able to afford that, But thanks for your cor Peter.
Speaker 3 (29:33):
To be honest, I'm looking at a five million dollar house.
Maybe I'm not like better, but I'd look at a
five million dollars who are four million dollar House'll be
like Jesus, wish I could afford that?
Speaker 2 (29:42):
Oh yeah, Actually, I I am trying to apply the
hypocrisy standard to myself here because I do have a
fantasy if I ever suddenly got the you know, a
big income and or came into a bit of money,
that I would want to buy a house in My
personal thing is I'd love to buy a house in France.
And France, for instance, you can there's no restriction on
(30:02):
who can buy property, including foreigners and non EU citizens
and I was thinking, if I'm happy to do that
for me, then am I being I guess it feels
because there's we get the feeling that there's much more
property available and affordable property in the country like France,
huge country, whereas in New Zealand we still feel we're
still getting on top of our supply issues even than
(30:23):
the market's. But soft is there anything in that d
you can correct me on or do you tell you
what you think about that? And come back after the break,
because I've realized we can take a moment and we'll
be back in just a ticket. It's twenty two gosh
times flying, It's twenty to five. Yes, and welcome back
(30:46):
to the One Roof radio show. I'm Tim Beverage. My
guest is Ed mcnart. We're talking about do we need
to loosen the foreign buyers ban. We've got the Golden
Visa scheme where if you become resident there's an possibility
of buying property. But what would we set the number at?
And I willso Ed and I Ed McKnight, my guest
pleas resident economists at Opus Partners. A funny chat just
in the break about if the government had a sense
(31:08):
of humor. Someone in the coalition said, we are going
to relax it, and the figure of which we're going
to set it at is six point one two seven
million dollars. And the reason they do that would just
be to mess with the media, who would spend months
trying to work out why it was six point one
two seven million, when in fact it's just because we're
just having a joke. But they could say, we can't
(31:29):
go into that because of the sanctity of the cabinet discussions.
But that's the number we've reached and we can't comment.
I think the journalist's head would just explode, wouldn't It
would be hilarious.
Speaker 3 (31:38):
I'd enjoy all of the interviews because that all us
ecodopus would run away and be like, why could it
be that number?
Speaker 1 (31:44):
Is it?
Speaker 3 (31:45):
Did they start with five million dollars and then they
inflation and adjusted it based on however many years or
is it a specific percentage of property sales within Auckland
or Queenstound. You'd get you'd get a lot of us
make up some pretty good justifications for why that might
be the case, and.
Speaker 2 (32:02):
Every part every cabinet meeting that'd start and go, what's
the most fun explanation for it. What they reckon, we've
done it for anyway. That's just just me being a
little bit childish, of course, having a bit of fun.
It's a few texts afternoon. Surely, if you believe in
trickle down economics and by letting overseas buyers buying to
top end houses, that will increase overall house prices, which
is not good for your average New Zealand to regard Stephen,
(32:23):
is there something in that to.
Speaker 3 (32:25):
A degree, But it depends how much you how much
weight you put on it, so pretty much everything can
have an effect. The question is how big is the effect. Now,
if we're talking about setting the threeshold at two million dollars,
I think you could make a pretty clear argument that
quite a number of houses that are priced at one
point seven one point eight million dollars now all of
us a sudden start being sold for two million dollars.
(32:48):
But if we're at a totally different end of the
bell curve, talking about five million, you know, setting the
threeshold at five million dollars, eight million dollars, we're talking
about a very small number of houses and a much
smaller opportunity for houses to get pushed up into that bracket.
So could there be an effect, But the question is
how large is the effect, And the size of that
(33:09):
impact would really depend on where you set the threshold.
Speaker 2 (33:13):
Here's another one. If an overseas buyer wants to buy here,
why not mirror Singapore and charge foreigners a thirty percent
stamp duty for all foreigners buying.
Speaker 3 (33:20):
Well, that's what the that's what the national government was
planning to do. They were talking about a fifteen percent tax.
It'd be interesting to see the willingness and I haven't
seen any data on this, but the willingness of foreign
buyers to pay that. It could be a way to
get up the government revenue.
Speaker 2 (33:38):
Yeah, and somebody has had pointed out something I'd be
sympathetic to that big farm farms should not be brought.
It should be about residential property rather than getting foreigners
to buy farmers or something then convert them into a
green sink for their other things, you know, with putting
trees and getting rid of productive farmland.
Speaker 3 (33:56):
So well, I mean I'd probably have the total opposite
view of that. I mean, what's so special about farms?
I love a good steak, Well, I love a good
steak too, But if a farm is owned by a foreigner,
does it impact the quality of the meat? Not really.
I would argue that you'd want more protection around residential
properties because we all need to live somewhere. It's not
(34:18):
like New Zealanders absolutely need to own the farm to
get the benefit out of it.
Speaker 2 (34:22):
Okay, Thomas Singapore and owns a magnificent home from across
with Us across Muster, which has been empty for twenty
five years. Actually, there is a property in our neck
of the woods that is very prominent, very very prominent,
flashling property, and I don't think I've ever seen anyone
living in. It's been getting renovated for a while. It's
the one you know you drive around from Koe.
Speaker 3 (34:44):
I don't know if you, Oh, you're talking about the
James Bond house with the massive elevator and that's the one. Yeah,
it is an absolutely stunning I saw.
Speaker 2 (34:51):
A light on it at one stage I thought maybe
is that somebody living there or not. But the only thing.
Speaker 3 (34:56):
I'd say about ghost houses is I haven't seen any
numbers about how much of an issue is it really,
because we don't have a measure of how many properties
are there in New Zealand with nobody absolutely living in it.
I'm not really sure whether it's too much of a problem.
If I'm honest with you, Tim.
Speaker 2 (35:12):
Okay Hi, Tim, I worked in education and when the
threshold was lower for investment by foreign investors, people were
buying a house or too an Aukland as their investment,
moving their kids in for free education, and the worst
cases I'm involved in leaving them there. The level of
investment must be higher and productive. I mean, the early
part of this, I'm not so worried about it. I
just think the last sentence, I think it's I think
(35:33):
we've just got to still focus on productive investment. It
just can't be buying a house.
Speaker 3 (35:37):
Well, my understanding is that is exactly how the scheme
works at the moment, and that five million dollars is
the minimum, but it's they wait more carefully higher risk investment.
So if you want to invest in lower risk investments, bonds,
those kinds of things, then the threshold starts to become
a bit higher.
Speaker 2 (35:52):
Just quickly before we head to the break, do you
think the government are going to move on this? And
I guess the question is, therefore, is Whinston going to
move on this because in National obviously want to make
some moves. I'm guessing Act to do as well. I'm
not totally sure about it, but I'm guessing. I think
the fly in the ointment is Winston. Sorry for the analogy.
Speaker 3 (36:11):
I So the question is do I expect there'll be
a change. I do think there'll be a change, but
I think the threshold will be quite high. Winston has
said that he'd be open to it, but he wants
the right type of investors coming in, so there might
be a couple of extra conditions associated with it. I
don't think it'll be a free for all.
Speaker 2 (36:28):
No, I'll tell you what. We're going to come back
and have a look at the one roof property of
the week, which is I think it is less than
five million, Yes it is. It's going to be something
that foreigners won't be able to get their hands on,
but it does look like an interesting one. So stay tuned.
We'll be back in just a moment. It's eleven minutes
two five News Talk. Se'd be.
Speaker 1 (36:46):
The one roof property of the week on the Weekend Collective.
Speaker 2 (36:51):
Yes, welcome back to the one roof Riady to show
the property of the week. Is it is what's the
all the address here. Sorry for a minute, I just
had and made a mistake on this three P seventy
cable station road Blind River in Marlborough. And actually for
the property and the views and everything, I don't want
to say one point sixty five million is affordable, but
(37:13):
it in many ways does look like for the sort
of lifestyle property you're getting. It's coastal views right through
to Wellington. It's got panoramic water views, complete privacy, privacy, privacy,
and close connections to the ocean. It's quite a large site.
So the thing that drew me to it is the house,
but it's actually eleven point one four hectare lifestyle property.
It's got breathtaking vistas of Clifford Bay, no doubt, you
(37:36):
get beautiful sunrises and sunsets by the look of it
as well, and it says the area is well known
for quality surf, cast fishing and the beach of course,
and horse tracks and all that sort of things. But
the house itself is what actually drew me to it,
because maybe it looks like the sort of place that
you would spend a bit on Airbnb going too, but
it's just been beautifully sort of landscape with key I
(37:59):
don't know what you call it, the actual indigenous tussot
grass surrounding it as well, and the views up and
down the cot I imagine when the wind's blowing. It's
a little bit windy, but it looks a very new house,
open plan layout, and actually always go straight to the
bathroom as well, which makes me think you ituld spend
a bit of time in that shower.
Speaker 3 (38:18):
Every time I come on this show to have you're
talking about bathrooms and how.
Speaker 2 (38:21):
Much you love them. I love a good bathroom.
Speaker 3 (38:23):
Another little feature about this house, or specifically the land
is you know how sometimes you go to a farm
and they've got one of those special places that you
trot your horse around if you're training. Well, it's got
one of those. So when you win you lotto, when
you win your powerball, you'll be able to buy your
kids some horses as well and trot them around.
Speaker 2 (38:44):
I mean, it does look like you don't have too
many neighbors around, doesn't it. In fact, I can't see
trace of any neighbors really, so it does look like
you're sort of yeah, but it's a great looking spot
and the house has been beautifully designed and so go
and check it out. It is, it's on the one
roof site and the address is again it's three seventy
(39:04):
cables stuff road Blind River Marlborough. And if we change
the rules around foreign investors, I doubt that they'll be
able to get their hands on it. Where would you
go for a bolt hole if you were looking for
a property holiday sort of thing, We just you know,
call in because you're Flasheed McKnight.
Speaker 3 (39:19):
Well I'm not Flashead midnight. That's the other one. What
I would say is I'd love to go to Italy.
I'd love a little bolt hole in Italy, probably northern Italy,
just on the other side of Switzerland. That'd be quite nice.
You'd be able to get there, to get up there
for the skiing, you'd be able to get up there
in summer and have a good old time.
Speaker 2 (39:38):
Yeah, I must say that would be My fantasy would
be to have a little bolt hole in Europe, in
France actually. But we went on holiday and to a
while quite a while back before we just after we'd
got married, to go to and among other things, we
went to Provence, which is just a gorgeous thing. And
I thought, oh, that's just a nice little rural area.
(39:59):
It won't be too expensive. The properties there.
Speaker 3 (40:02):
Well, what are we talking?
Speaker 2 (40:04):
Oh well they were You know that you could buy
something for a good couple of million pounds, but the
sort of thing I always had in my e EU wrote,
Should I say, but I look there, we're cheaper properties,
but in terms of what I thought i'd get. But
Provence is a fairly flash area, much as same with
the Revi era. Anyway, Hey, ed, if people want to
check out the week you do, where do they go
for ops Partners?
Speaker 3 (40:23):
Well, either Oprah's Partners or codd In and Said, or
check out the Property Kenemy podcast. That is our daily show.
We do fifteen minutes about property every single day.
Speaker 2 (40:32):
You are a glutton for punishment. Good on you, Good
on you. Hey, nice to see you, mate, and we'll
look forward to next time. We will be back with
the Parents Squad. We have a new guest who is
joining us, and we'll be talking about mental health and
kids and when is it time to get them some
counseling help and should you actually know what they tell
the counselor as well. We'll be discussing that on the
(40:55):
Parents Squad, which is next. It's three and a half
minutes to five on news Talk ZEDB.
Speaker 8 (41:09):
That's the train to see my mother. I look across
the track, seal at the number. There's not the works
that you see.
Speaker 1 (41:23):
You still so. For more from the Weekend Collective, listen
live to news Talks It'd be weekends from three pm,
or follow the podcast on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talk SIB.
Speaker 2 (00:27):
Yes, and welcome back to the show. This is the
Weekend Collective. But by the way, if you missed our
energetic panel with Wilhelmina Shrimpton and Bat brad Olsen, you
can go and check our podcast. We generally get our
podcasts up fairly quickly after each hour has concluded, so
going look for that on iHeartRadio or the News Talk
SB website. And this is the one roof radio show,
(00:48):
and we're going to give me a chat about basically
about foreign investment and what's called the Golden Visa. So
just as a bit of background for you, since twenty eighteen,
New Zealand's had a band that prohibits most non residents.
I think it's an exception for Australia, Singapore. I think
that's about it. Existing residential properties, not existing residential properties.
(01:09):
Some wealthy Americans apparently are interested in buying homes in
New Zealand. I saw some article on an international news
site saying it was the anti Trumpers who were desperate
to get out and buy houses here. But whoever it is.
And there has been some talk that the government is
considering relaxing the ban, and Immigration Minister Erica Stanford saying
talks are happening quote at a leader to leader level
(01:31):
in the coalition government, which means Luxe and Peters and Seymour,
I would imagine. And the country's revamped Golden visa program.
So far it's attracted one hundred and four visa applications
covering three hundred and forty six individuals, with other half
coming from the US. But the inability to buy a
(01:52):
house remains a hurdle for would be investors anyway, So
we're going to we want your view on that. Should
we allow them back into the market, what should the
limit be if any and joining us to discuss it.
He has resident economist at Ope's Partners and his name
is Ed mckknight and he's right here, Ed High, great to.
Speaker 3 (02:13):
Be here, Tim, How are you?
Speaker 1 (02:15):
Oh?
Speaker 2 (02:15):
Well, very good.
Speaker 3 (02:15):
Now there's just one little correction that I've got to
give yet.
Speaker 2 (02:18):
Yes, it's deliberately let's see if you picked up with
a mistake.
Speaker 3 (02:22):
I'm glad you're testing me, Tim. So you said that
anybody who's not Australian or Singapore and can still buy
a new build house actually it's a very specific type
of property. It's only large apartment complexes where the developer
has specifically applied for an exemption, and let me tell you,
there aren't that many of them. So if you are
(02:43):
unless you're Australian or Singapore and you're basically locked out
of the New Zealand property market.
Speaker 2 (02:47):
Although you could be a developer. You can be an
overseas developer and build a whole lot of things, can't
you. You can build a housing development.
Speaker 3 (02:53):
You might be able to be involved in a company
that starts developing properties, but in that case you're not
necessarily owning the properties as long term investments. But there's
a little.
Speaker 2 (03:05):
These are good points before we get into it. By
the way, you can call any time, oh, eight hundred
and eighty ten eighty. Do you think there should be
some level at which we allow wealthy foreigners to buy
a property in New Zealand. Should it be minimum five
million bucks in queens Down or should it be area specifically,
say okay, you're welcome to come here, you can buy
in this particular area or this town. Or should there
(03:28):
be a minimum spend of ten million, two million, seven million,
not at all? Give us a call eight hundred eighty
ten and eighty before I ask ed for your view
ed budget week. Have you had a good time.
Speaker 3 (03:40):
Oh, it's been a great time, tim. I've been especially
around the key we save the stuff. I hope we
get some time to dig into that because it is
absolutely fascinating what's gone in there, and it will have
a very, very large impact on people's retirement savings. I'll
give you a little, little little scenario here. Let's say
you're forty years old today and birthday. I'm not quite forty,
(04:04):
but we'll get there of very Actually.
Speaker 2 (04:05):
No, I didn't mean you. I that someone out there
is forty today, so I think we've covered them. Yeah.
Speaker 3 (04:10):
So let's say you're forty today and you earn eighty
grand a year. You got twenty five grand in your kiwisaver.
Under the old rules, you'd have about five hundred K
by the time you get to retirement. Under the new rules,
you'll have just over six hundred k because you're going
to be contributing more over the next twenty five odd years.
So that extra one hundred thousand dollars a year, or
two hundred thousand dollars if you're a couple and there
(04:32):
are two of you in the household. That's going to
have a really large impact on people's ability to live
a pretty decent retirement, and hopefully that'll take some pressure
off the system as well in terms of the government
spending on the pension system and NZ super.
Speaker 2 (04:49):
Yeah, that's in fact, I was at a conference earlier
this week which was for there's a company called Concilium
who are launching a new kiwisaver fund, And okay, I
admit there was some fairly high level stuff whereas like,
excuse me, can I go? My brain is full. Some
of the modeling about just the difference it can make
when you stick in three or four percent, and if
you're in a fund that is better performing than others,
(05:11):
the difference it can make, especially for someone who starts
when they're say thirty or thirty five, it's big. It's
big bucks, isn't it.
Speaker 3 (05:18):
It's substantial. And so even if we think about, well,
how much extra could you spend in retirement for a couple,
these changes should give them about an extra ninety dollars
a week, depending on how much you earn, but it's
going to be pretty significant by the time you stop working.
There It's actually quite funny. We were just talking off
here that my fiance Angela, she is a financial advisor,
(05:39):
and was at that conference, and we were sitting at
home and she said, is Tim Beveridge speaking at the conference?
I was like, I don't think so. He might just
be announcing it.
Speaker 2 (05:51):
Yeah, that's right. Yeah, they had no They had people
like Andrew bascand he's one of my regular contributors on
from harbor Asset, and a bunch of people who knew
a lot more about it than I did. So I
was just the MC for it. But hey, look on
the property thing, there were there any particular would property buyers,
(06:11):
investors agents, would they have been looking for anything in
the budget in particular? Or because it didn't seem that
there were there any headlines to be gathered. The main
thing is the thing we're going to discuss about the
foreign investment in the Golden Visa? Was there anything that
we should have been looking for? Do you think in
the budget for property?
Speaker 3 (06:28):
Well, I think real estate agents, especially those operating at
the top end of the market, certainly would have been
wanted to see the relaxation of those rules. I was
a little bit surprised that we haven't got a mention
from that, especially because we've been talking on us ZB
for probably the last four or five months about this
potentially happening. Real estate agents making noises, So a little
bit surprised there. I'll tell you one thing that I
(06:52):
kind of wanted out of the budget now that we're
talking a lot about kiwisaver. The good thing about these
new rules, in terms of contributing four percent as opposed
to three percent, getting more money out of your boss,
that's really good. If you are somebody who is planning
for their retirement twenty years down the road, that is
going to make a huge difference. These new rules are
(07:12):
not going to make that much of a difference to him.
For first home buyers, because if you're putting away just
an extra one percent of your income, yes it helps,
Yes it adds up a little bit, but it doesn't
make that much of a difference. Over three or four years.
You're getting a little bit more from your boss, but
you're getting a little bit less from the governor. That
that kind of cancels out any large effect. So if
(07:34):
you're investing for twenty years, great, But if you are
a first home buyer, these changes aren't really going to
help you. So a couple of things I've been thinking
about as I was driving here about my budget wish list.
I think it would be really good if your employer
contributions to kivsaver were tax seductible. So a lot of
people probably don't catch this, but if you and will
use simple numbers just because it's simple from a simple brain.
(07:57):
Let's say you earn one hundred thousand dollars a year
and you currently contribute three percent to your keivsaver. So
you put in three grand and then your boss puts
in three percent. That's three grand, but his three k
is taxed. So actually, while they're putting three percent in,
you raally only get two thousand dollars or two percent
once your once your boss has paid the extra little
(08:19):
bit of tax there. So if those rules would change,
that would certainly help first home buyers build up their deposit.
That's one thing that I thought, Oh, that could help.
Speaker 2 (08:28):
What about property wise? Property related?
Speaker 3 (08:31):
Property related? I think it would be very interesting to
have a discussion about bringing back ring fencing. So back
in the day before the labor government got in twenty seventeen,
if you made a loss through your investment property. You
could then deduct that against your income for tax purposes.
So basically let's say that I are.
Speaker 2 (08:50):
You in favor of that.
Speaker 3 (08:51):
By the way, I'd love to see that come back,
because it does.
Speaker 2 (08:54):
Seem like that suits your interests as someone who's involved
with property.
Speaker 3 (08:57):
Oh well, no, it actually would, because it'd be a
it'd give a tax benefit for property investors who were
at the very very early stage of investing where the
rent may not cover all of the costs that are
associated with that property, and so they're effectively negatively geared.
But at the moment, let's say that you earn an
income and you're paying tax on that. If you decide
(09:20):
to start any business that makes a loss, well you
can deduct that against your salary if you're a sole trader.
But with property you can't do that whereas you used
to be able to. That's the only thing I could
really think of that a property investor might want.
Speaker 2 (09:34):
Well, let's get onto the Golden visa thing, So we
want your cause on this eight hundred and eighty ten eighty. Now,
just so people know, the Golden Visa, as far as
I understand is it basically enables wealthy individuals for an investment.
I think of five million bucks they can then they're
eligible for residency, which will then allow them to buy houses.
(09:56):
But the question is around extending those rules because you
know there are a lot of wealthy people who want
to come and spend some time in news along. Should
we allow them to buy proper Actually, I'll go hot
on this one before you climb in their head. I
don't think we need to change it. I'm not really
interested in making an exemption for wealthy people off the
top of it, because I don't know. There was a
(10:18):
complaint by it real estate agent who said that a
property had been sitting without selling for seventeen million for
a long time, and that's because no New Zealander can
afford to buy it. I don't know. It's a difficult
argument for them to get over the fence with me
and think, oh, you poor thing. But I don't want
to be jealousy. But you know exactly what you've made,
because I want to see money coming in. I like
(10:40):
the Golden visa. You invest in a business, you invest
in productivity, come in here, be a resident, buy a house.
Good on you, full stop. But outside of that, I
don't feel personally the need to change.
Speaker 3 (10:55):
What do you think, Well, I'm not totally opposed to it,
but at the right threshold. So at the most recent election,
National was talking about a two million threshold, and two
million dollars sounds like a lot of money, but when
we're talking about New Zealand houses, it's not really so.
At the height of the market back when the big
COVID boom was going on, something like eight percent of
(11:17):
houses in Auckland were selling for two million dollars or more.
If you think at some point in the future, you know,
house prices may keep going up and they may appreciate
over time. Well, if you set the threshold at two
million dollars, if we were allowing eight percent of Auckland
houses to be sold off to foreigners, that sounds.
Speaker 2 (11:34):
Like too many to me, definitely.
Speaker 3 (11:35):
But if we talk about a five million dollar threshold, well,
lots of properties sell for two million dollars in Auckland
and Queenstound, but not that many sell for five million dollars.
It's less than a percentage point?
Speaker 2 (11:48):
Would it Okay? Does what it mean? Would it influence
the market for properties that are say four and a
half million or four million or somebody say, well, if
I can just make my asking price five million in
a bit, then I've got a whole lot bigger market,
would it. Does that have a knock on effect that
it's feeds downhill a little bit?
Speaker 4 (12:06):
Well?
Speaker 3 (12:07):
I think you could make that argument when your three
shold's two million dollars, you know, And I was certainly
saying before the election, Oh, if your house is one
point nine million dollars, maybe you can be able to
get over that threshold if somebody really likes it. It's
got a bit of land and they see some potential
in it. I think if you take the threshold up
to five million dollars, yeah, it might have a knock
on effect to you know, a four and a half
(12:27):
million dollar house. But we're talking about a few houses.
It's not a massive number at that point, whereas that
two million dollars or even at one and a half
a day have a big impact.
Speaker 2 (12:37):
Just to be argumentative, I think we like to go
on five or ten or fifteen. I'm going to go eight.
I set my but what do you reckon? Oh, eight
hundred and eighty ten eighty should we relax the foreign
buyers ban? What do you like the fact that actually
the market slowed down for a variety of reasons. Not
great if you're a property investor necessarily, but the market
(12:58):
is gradually becoming a bit more accessible. So what do
you think would you be concerned about a foreign buyers
ban being lifted lifted or loosened. Let's get into it,
shall we, Steve Hi?
Speaker 4 (13:09):
Yeah, goody, do you know what? No offense, mate, But
you suffer from the same thing a lot of here
we suffer from. And you have that sort of you
have your your blinkers on, your roasting and glasses about
New Zealand and and and the foreigners an't.
Speaker 2 (13:25):
What's rose about my glasses? Sorry?
Speaker 4 (13:29):
Well, I think you think foreigners won't think about New Zealand,
like you're going to think you you have a there's
a special place in New Zealand your heart right where
it's not in the foreigner's hearts, right, So you're going
to have to do a little bit more than to
entice them into the country. And look, you're not going
to entice them. This is the biggest red herring. And
every time I hear it, it just it just I
(13:51):
just get so tired of it. It's like this Indian
trip and the free trade A ll the fanfare and
nothing will come of it. We're not going to see
any short term gains.
Speaker 2 (13:59):
Telling me, you don't care about fine buyers, it's you
know that we're not that much in demand, so why
do we care? Full stop?
Speaker 4 (14:05):
Well, we're basically a bunch of beggars at the moment
in New Zealand. So we have to take all the
conditions off because beggars can't be choosers. And I don't
want to take the conditions off. I would love to
keep this foreign buyers ban on and that'd be fantastic,
and I'd love to export our way out of the
out of this rupt wearing, but we're not going to
do it. The only way New Zealand can do it
(14:26):
is getting foreign buyers, and it's the only lever we
can pull to get the money.
Speaker 2 (14:32):
What about the gold I'll tell you what about the
golden the golden visa. Basically, if you want to invest
as little as five million bucks, literally you only have
to invest as little as five million dollars, you can
get residency. I mean, don't we want to encourage money
into the productive sectors rather than he had just come
and buy a house, sit on it and visit every
visited every sort of six months.
Speaker 4 (14:53):
There's nowhere to put it that's not enticing to a
foreign and wife. There's no businesses here that's going to
get them to get over here.
Speaker 2 (15:00):
Well, then why would they sell them my property? Then
if they're not interested in productive in the productive economy,
why would we let you know?
Speaker 4 (15:07):
Because New Zealand is a dairy exporting nation and it's
a scenic country that people want to have a bolkhole
to come to and stay in, like in Queenstown, then
they want to go back to the US. And also,
why wouldn't American come here. Let's say they want to
invest into I say a real estate agent's you know,
they want to start up a real estate agent's company here, right,
and they want to invest a five milk Are they
(15:28):
going to do that if there's a foreign buyers band, No,
because they're going to want to invest here and have
no conditions on foreigners buying. Because I want to go
back to the US and sell New Zealand property to
their mates. There's going to be businesses like that and
it's not going to worry.
Speaker 2 (15:45):
Let's throw it into the conversation there ed, what do
you reckon?
Speaker 3 (15:48):
Well, the main thing that I'd say is I think
my rose tinted glasses are working in The good news is,
over the last six weeks we have had more people
apply or just as many people apply for that Golden
visa as we've had in the previous two and a
half years. So the good news is there is a
lot of interest in people putting money into New Zealand
at the moment, about half of them I believe coming
(16:10):
from the US, other interests coming from China and Hong Kong.
But let me ask you this, Steve, if we were
to relax the rules on foreign buyers, where would you
draw the threshold. Would it be at two million dollars
five million dollars or would you not have a threshold
at all in terms of what they could spend.
Speaker 4 (16:26):
I wouldn't have a threshold. I would just put a
massive stab duty on because they're going to pay it.
New Zealand is such an enticing place to come and
live if you want to buy a resident residential property
is the key word. They're not interested in.
Speaker 2 (16:38):
You accuse me of having roast into glasses on, but
you're just suddenly telling me it's such an enticing place
to live. Are't you the rolest into glasses guy, Steve,
you're all patriotic. They're saying, how beautiful we are. Good
on you.
Speaker 4 (16:50):
No, no, but Tim, I'm just trying to you said
you want to keep the buyers man on. I'm saying,
if you want to get the economy going, that's the
one lever that we got to pull. But it's going
to be unconditional because foreigners don't want conditions. Do you
think Americans are going to get the check book out
when they're looking at properties and you see all these
little conditions, They're just going to go to the next country. God,
that's what I'm just trying to say about the rose
(17:11):
tinted glasses. They're looking at New Zealand in a different way.
They're looking at more as an accounting procedure. You sort
of have your heart in it because you know you
have a special place for you. It's not the same
for the foreigners we got it.
Speaker 2 (17:23):
Is it a special place for you, Steve?
Speaker 4 (17:27):
It is that maybe I wasn't born here, so not
quite as much as it is for you. I see
it from a different perspective, actually so. But I'm just
we had the Chinese ways that came in in the
early two thousands. I always believe the Chinese don't get
enough credit for getting the economy humming. If we didn't
have them, I don't believe we would have grown to
where we are even at this point. And we got
(17:48):
to understand we need another five million in this country.
We've got probably we've got great people coming into the country,
but they're not the wealth going to get it coming cool.
Speaker 2 (17:57):
Okay, thanks for course, Steve. And despite the sort of
I think it was a veiled insult, sort of saying
I was a bit roast tinder glasses. But usually I
get hate Marl saying how are you been saying negative out?
It's such and such. So if it's an insult to
be saying you're positive about something, then I don't know.
I'm not sure where to go with that one. But
tell you what, we will take a break. You can
give your feedback on this. Do you think we should
(18:18):
allow foreign investors to buy property in New Zealand? And
if so, we're talking about loosening the restrictions. Where would
you set the threshold you can buy a property for
two million, four million, six million, eight million, Stop me,
ten twelve fourteen? Stop me yet?
Speaker 3 (18:35):
Why not make it eleven and a half eleven and
a half million?
Speaker 2 (18:38):
We have a number, oh eight hundred twenty five past four. Yes,
and welcome back to the show. Tim Beverage with My
guest is Ed mcnighty's resident economist at OPA's Partners, and
we're talking about the foreign buyers ban. There's a been
some indications from Erica Stanford that talks so happening at
a leader to leader level on whether it will be loosened,
(18:58):
and I'm sort of like, well, if it is loosened,
I think you should keep the price nice and high
because I just don't really want it. I'm quite happy
to leave it on there, to be honest. But I'm
a hypocrite because I like to think if I ever
won the Lotto, that I'll be able to that I
should be able to go and buy a property in
my choice of European countries so I can go skiing.
That's if I win Lotto. But until then, I can't
(19:20):
be a hypocrite. I can just think, like, one, let's
take some cool, shall we, josh youday?
Speaker 5 (19:26):
Yeah, Hey guys, no, good, good good yarns Hey I'll
just read Rejin the whole thing, because what we need
is gentle, gradual growth, not boom or buss. We don't
want lots of people aiming for the one thing, Like
you're not going to get enough people at those rates anyway. Like,
(19:49):
if it's about stimulating house building, then why not make
homes available for foreign contractors that are coming in to
do essential work roles that actually contribute to us building something.
(20:12):
These people would be spending between eight hundred and say
three million. But rather than just leave it open for
juggling houses around, why don't we allow better conditions for
say a non citizen to buy a house. Who is
(20:35):
saying an essential engineer or you know, has an essential job.
Why don't we do it that way and forget about
these grandparents with bake shops and bring in liquor stores.
Speaker 3 (20:50):
So, Josh, let me just jump in there. So are
you saying that when people come in overseas to build houses,
if they're a highly skilled engineer or something, what don't
these people just rent rather than wanting to buy a
house for eight hundred k, keep it for two years
while their jobs going then and then sell it when
they leave. Wouldn't they just rent instead.
Speaker 6 (21:09):
Well, you can have the option, but once you're here
for if you decide to be long more, long term
renting after three to five years is a good.
Speaker 5 (21:24):
Use of money, is it?
Speaker 2 (21:25):
Yeah?
Speaker 3 (21:26):
I get what you mean. I suppose when people are
talking about changing the property rules in order to be
able to get the country going, I think the perspective
usually is less Hay, Look, we should open up our
housing market so that we can can flog off some
houses and those those people who just sold their houses
might go and reinvest.
Speaker 2 (21:43):
I think the.
Speaker 3 (21:43):
Idea is more that in order to attract people who
have a lot of money to invest, we've got to
at least allow them to go ahead and purchase a
property when they are working here.
Speaker 2 (21:56):
Yeah.
Speaker 5 (21:56):
So what I'm hearing is they want to build something
accustom to their existing lifestyle, and if those don't exist us,
they won't they won't buy them. What I'm suggesting is
we'd have a bigger number to work with. You'd have
bigger numbers of people between the million to three million
mark as working class people that contribute to paye as
(22:23):
opposed to inviting I don't know, some plus fifty five
year olds who may own franchise stores or something, and
may have a commercial property investment, but they're not necessarily
I don't know how valuable that is to us at
(22:46):
this at this stage.
Speaker 2 (22:50):
Interesting, Yeah, and thanks josh good on you mate. Always
good food for thoughts from Joshua. I appreciate it. Let's
continue the conversation with lots of text here. By the way,
let's carry on though with Chris. Who's next today?
Speaker 7 (23:05):
Guys, how's a game?
Speaker 2 (23:06):
All right?
Speaker 7 (23:08):
Yeah, I'm a fan for overseas buyers. I think the
only proviso I can see to make it a bit
water tight is they've got to have a new builder,
you know, they've got to build something here or buy
something that's brand new rather than something sort of out
of the stock. I mean, there's a lot of jewels.
(23:29):
I don't know if you realize that there's a have
a lot of duel citizens live in New Zealand and
New Zealand. It's not their private place. We've got family
members in our family who are dual citizens of New
Zealand and the USA and they spend six months here
during the summer and six months back in the States
during the summer. But one of the things that blew
me away about them. I was speaking to his a
(23:51):
rally of mine, and I was asking him about because
he wanted to do some renovations on the house he
owns in New Zealand. And I said, well, why do
you do the renovations. Why don't you just sell the
thing and buy something else, because there's no shortage of
cash here. You get in a drift. And he said
to me, what, I don't want to sell it? He said,
because US Americans have got to pay worldwide tax. And
(24:12):
he said, if he sold his house in New Zealand,
he's got to pay a twenty percent capital gains tax
in the US.
Speaker 3 (24:17):
Oh jeez, that's quite an enormous capital gains tax, isn't it.
I understand what you're saying, though, Chris and two's are saying, well,
if you are going to go, if you are going
to move over here and bring your money, you might
as well build a new build. The only thing that
might be a downfall with that way of thinking, and
maybe you've got some ideas around this, is that if
you are going to build a highly architectural, high spec
(24:39):
house because your daddy wall bucks for a man in
you've got lots of money to come over. I knew
that musical joke would get you to you'd enjoy that one.
It takes a long time to build. Some of these
really architectural houses might be a year, two years. Some
builds can take even longer than that. And if you
are wanting to relocate over here, do you really want
(25:01):
to wait one year, two year, three years to find
the site, build the house, and then find move in.
Speaker 8 (25:06):
Yeah?
Speaker 7 (25:06):
Yeah, I think you might be surprised at how much
thought these people put into it. I know that these
family members are ours in the US who bought here
probably about five years ago, but they looked at other
countries and they look for at least a couple of
years before they made a decision. So you know, it's
not a light decision these people make. I think, you know,
(25:26):
waiting for something to be built, you know, could be
no big deal.
Speaker 2 (25:31):
Okay, maybe you're up any price limit. I mean, this
would be one thing to buy a nice new build
that's a bit partion, you know, with the latest architectural
features and all that. And it's another thing to go
and buy three properties in Stonefield, which is a Fletcher's
development and take those out of the Kiwi potential first
time buys. What do you reckon?
Speaker 7 (25:50):
Well, I wouldn't want them buy and three of them,
I mean, you know it's got to be some own occupier.
I would wouldn't be I wouldn't be having them here
as investors.
Speaker 2 (25:59):
Okay, you know that's actually that's that's reasonable, Good Christmas.
Speaker 3 (26:03):
You know it's surprising though, Tim. So we've had three
callers today, Steve, Josh, Chris, and I am amazed that
every single one of them was open to the idea
of foreign home buyers. Sometimes we think that, oh, you know, Kiwis,
we're not going to like it if we allow foreign
home buyers in here. Our non scientific example of three people.
It's just it's just surprised me.
Speaker 2 (26:24):
Not scientific. Yeah, this this, if this is one news,
we'd be holding that out as representative of the whole country.
That's my little job there. And it was a cheap shot,
but I had to take it. Right. Let's carry on
with some more callers. Let's go to Peter Gide.
Speaker 9 (26:39):
How are you going, guys?
Speaker 2 (26:40):
Good?
Speaker 9 (26:40):
Good, Yeah, it should be this foreign but it should
be loosen that for God's sake, when two million bucks
is too cheap. But there will be a certain limit.
Speaker 5 (26:52):
I don't want.
Speaker 9 (26:53):
One of those was probably about the late single figures,
eight seven, eight.
Speaker 2 (26:58):
Nine, what about eight and a half? I like, I
don't have just been fickled, but I think, yeah, five
fields to me, how much five feels too cheap?
Speaker 1 (27:12):
Yeah?
Speaker 9 (27:12):
Yeah, yeah, yeah, because most half decent a lot of
the half decent subject is on the north shore. Five million.
Speaker 4 (27:19):
There's a good house, but it's not it's not the.
Speaker 9 (27:22):
One house in the whole subject that's five million. There,
there's quite a few.
Speaker 5 (27:26):
There's one, there's one.
Speaker 9 (27:27):
There's one down one of the roads where I know
it's worth about five million years ago. It's up for
sale now, probably reached double figures. But you know, I
mean if it's if it's tied up, if it's tied
up to wanting to invest in this country, Yeah, well
really just loosen it up.
Speaker 2 (27:47):
And actually, Peter.
Speaker 9 (27:50):
Winston Beters is a dinosaur on this to be frank.
Speaker 2 (27:52):
Yeah, Peter, can I just jump in there? Are you
saying you mentioned if it's tied up with investing in
the country. Do you mean buy a house if you
are also doing some other economic activity? Yeah, because I
think why not? I think that's where at where we're
at with the Golden visa. Anyway, if you tip in
five million into a business, you can be resident and
(28:13):
therefore by but I think you have to be resident,
that's the catch.
Speaker 9 (28:17):
Yeah, I'll get him. Residency's easy. And this cut JV
Man is doll that we don't need here is on.
Speaker 2 (28:23):
I think what did he get? He got it straight
away just for having a lot of money and then
never moved here.
Speaker 9 (28:29):
So what he's probably been injected more money come to
what were in a lifetime.
Speaker 4 (28:34):
In some respects Okay, fair enough.
Speaker 9 (28:37):
He's been positive for the GDP as opposed a lot
of immigrants.
Speaker 2 (28:41):
What do you reckon, Peter? Sorry?
Speaker 4 (28:43):
Ed?
Speaker 3 (28:44):
The only thing I'd say when we were arguing about
is at five is at eight million. When you raise
the threeshold from five to eight, you don't actually knock
out that many houses, just a tiny tiny percentage. A
least than one percent of properties sell for more than
five million dollars in Auckland. So I think it's probably
fair enough to draw the line a nice round figure
in my view. But you know, we can all probably
argue about this to the cows come home.
Speaker 2 (29:05):
Yeah, hey, good on your Peter, Sorry, you were going
to say something else there.
Speaker 9 (29:08):
Sorry, carry on a buttud thing five seven, eight, But
eight sounds sensible. It sounds to me, it sounds like, yeah,
that's a reasonable mood. Not many people are going to
afford buying an eight million dollar houses. A few people can.
Speaker 4 (29:21):
I get that.
Speaker 9 (29:22):
But that's that's that's the realm of oh man, Well,
wish I could afford that five millions.
Speaker 2 (29:29):
You could win the power ball tonight and still not
be able to afford that, But thanks for your cor Peter.
Speaker 3 (29:33):
To be honest, I'm looking at a five million dollar house.
Maybe I'm not like better, but I'd look at a
five million dollars who are four million dollar House'll be
like Jesus, wish I could afford that?
Speaker 2 (29:42):
Oh yeah, Actually, I I am trying to apply the
hypocrisy standard to myself here because I do have a
fantasy if I ever suddenly got the you know, a
big income and or came into a bit of money,
that I would want to buy a house in My
personal thing is I'd love to buy a house in France.
And France, for instance, you can there's no restriction on
(30:02):
who can buy property, including foreigners and non EU citizens
and I was thinking, if I'm happy to do that
for me, then am I being I guess it feels
because there's we get the feeling that there's much more
property available and affordable property in the country like France,
huge country, whereas in New Zealand we still feel we're
still getting on top of our supply issues even than
(30:23):
the market's. But soft is there anything in that d
you can correct me on or do you tell you
what you think about that? And come back after the break,
because I've realized we can take a moment and we'll
be back in just a ticket. It's twenty two gosh
times flying, It's twenty to five. Yes, and welcome back
(30:46):
to the One Roof radio show. I'm Tim Beverage. My
guest is Ed mcnart. We're talking about do we need
to loosen the foreign buyers ban. We've got the Golden
Visa scheme where if you become resident there's an possibility
of buying property. But what would we set the number at?
And I willso Ed and I Ed McKnight, my guest
pleas resident economists at Opus Partners. A funny chat just
in the break about if the government had a sense
(31:08):
of humor. Someone in the coalition said, we are going
to relax it, and the figure of which we're going
to set it at is six point one two seven
million dollars. And the reason they do that would just
be to mess with the media, who would spend months
trying to work out why it was six point one
two seven million, when in fact it's just because we're
just having a joke. But they could say, we can't
(31:29):
go into that because of the sanctity of the cabinet discussions.
But that's the number we've reached and we can't comment.
I think the journalist's head would just explode, wouldn't It
would be hilarious.
Speaker 3 (31:38):
I'd enjoy all of the interviews because that all us
ecodopus would run away and be like, why could it
be that number?
Speaker 1 (31:44):
Is it?
Speaker 3 (31:45):
Did they start with five million dollars and then they
inflation and adjusted it based on however many years or
is it a specific percentage of property sales within Auckland
or Queenstound. You'd get you'd get a lot of us
make up some pretty good justifications for why that might
be the case, and.
Speaker 2 (32:02):
Every part every cabinet meeting that'd start and go, what's
the most fun explanation for it. What they reckon, we've
done it for anyway. That's just just me being a
little bit childish, of course, having a bit of fun.
It's a few texts afternoon. Surely, if you believe in
trickle down economics and by letting overseas buyers buying to
top end houses, that will increase overall house prices, which
is not good for your average New Zealand to regard Stephen,
(32:23):
is there something in that to.
Speaker 3 (32:25):
A degree, But it depends how much you how much
weight you put on it, so pretty much everything can
have an effect. The question is how big is the effect. Now,
if we're talking about setting the threeshold at two million dollars,
I think you could make a pretty clear argument that
quite a number of houses that are priced at one
point seven one point eight million dollars now all of
us a sudden start being sold for two million dollars.
(32:48):
But if we're at a totally different end of the
bell curve, talking about five million, you know, setting the
threeshold at five million dollars, eight million dollars, we're talking
about a very small number of houses and a much
smaller opportunity for houses to get pushed up into that bracket.
So could there be an effect, But the question is
how large is the effect, And the size of that
(33:09):
impact would really depend on where you set the threshold.
Speaker 2 (33:13):
Here's another one. If an overseas buyer wants to buy here,
why not mirror Singapore and charge foreigners a thirty percent
stamp duty for all foreigners buying.
Speaker 3 (33:20):
Well, that's what the that's what the national government was
planning to do. They were talking about a fifteen percent tax.
It'd be interesting to see the willingness and I haven't
seen any data on this, but the willingness of foreign
buyers to pay that. It could be a way to
get up the government revenue.
Speaker 2 (33:38):
Yeah, and somebody has had pointed out something I'd be
sympathetic to that big farm farms should not be brought.
It should be about residential property rather than getting foreigners
to buy farmers or something then convert them into a
green sink for their other things, you know, with putting
trees and getting rid of productive farmland.
Speaker 3 (33:56):
So well, I mean I'd probably have the total opposite
view of that. I mean, what's so special about farms?
I love a good steak, Well, I love a good
steak too, But if a farm is owned by a foreigner,
does it impact the quality of the meat? Not really.
I would argue that you'd want more protection around residential
properties because we all need to live somewhere. It's not
(34:18):
like New Zealanders absolutely need to own the farm to
get the benefit out of it.
Speaker 2 (34:22):
Okay, Thomas Singapore and owns a magnificent home from across
with Us across Muster, which has been empty for twenty
five years. Actually, there is a property in our neck
of the woods that is very prominent, very very prominent,
flashling property, and I don't think I've ever seen anyone
living in. It's been getting renovated for a while. It's
the one you know you drive around from Koe.
Speaker 3 (34:44):
I don't know if you, Oh, you're talking about the
James Bond house with the massive elevator and that's the one. Yeah,
it is an absolutely stunning I saw.
Speaker 2 (34:51):
A light on it at one stage I thought maybe
is that somebody living there or not. But the only thing.
Speaker 3 (34:56):
I'd say about ghost houses is I haven't seen any
numbers about how much of an issue is it really,
because we don't have a measure of how many properties
are there in New Zealand with nobody absolutely living in it.
I'm not really sure whether it's too much of a problem.
If I'm honest with you, Tim.
Speaker 2 (35:12):
Okay Hi, Tim, I worked in education and when the
threshold was lower for investment by foreign investors, people were
buying a house or too an Aukland as their investment,
moving their kids in for free education, and the worst
cases I'm involved in leaving them there. The level of
investment must be higher and productive. I mean, the early
part of this, I'm not so worried about it. I
just think the last sentence, I think it's I think
(35:33):
we've just got to still focus on productive investment. It
just can't be buying a house.
Speaker 3 (35:37):
Well, my understanding is that is exactly how the scheme
works at the moment, and that five million dollars is
the minimum, but it's they wait more carefully higher risk investment.
So if you want to invest in lower risk investments, bonds,
those kinds of things, then the threshold starts to become
a bit higher.
Speaker 2 (35:52):
Just quickly before we head to the break, do you
think the government are going to move on this? And
I guess the question is, therefore, is Whinston going to
move on this because in National obviously want to make
some moves. I'm guessing Act to do as well. I'm
not totally sure about it, but I'm guessing. I think
the fly in the ointment is Winston. Sorry for the analogy.
Speaker 3 (36:11):
I So the question is do I expect there'll be
a change. I do think there'll be a change, but
I think the threshold will be quite high. Winston has
said that he'd be open to it, but he wants
the right type of investors coming in, so there might
be a couple of extra conditions associated with it. I
don't think it'll be a free for all.
Speaker 2 (36:28):
No, I'll tell you what. We're going to come back
and have a look at the one roof property of
the week, which is I think it is less than
five million, Yes it is. It's going to be something
that foreigners won't be able to get their hands on,
but it does look like an interesting one. So stay tuned.
We'll be back in just a moment. It's eleven minutes
two five News Talk. Se'd be.
Speaker 1 (36:46):
The one roof property of the week on the Weekend Collective.
Speaker 2 (36:51):
Yes, welcome back to the one roof Riady to show
the property of the week. Is it is what's the
all the address here. Sorry for a minute, I just
had and made a mistake on this three P seventy
cable station road Blind River in Marlborough. And actually for
the property and the views and everything, I don't want
to say one point sixty five million is affordable, but
(37:13):
it in many ways does look like for the sort
of lifestyle property you're getting. It's coastal views right through
to Wellington. It's got panoramic water views, complete privacy, privacy, privacy,
and close connections to the ocean. It's quite a large site.
So the thing that drew me to it is the house,
but it's actually eleven point one four hectare lifestyle property.
It's got breathtaking vistas of Clifford Bay, no doubt, you
(37:36):
get beautiful sunrises and sunsets by the look of it
as well, and it says the area is well known
for quality surf, cast fishing and the beach of course,
and horse tracks and all that sort of things. But
the house itself is what actually drew me to it,
because maybe it looks like the sort of place that
you would spend a bit on Airbnb going too, but
it's just been beautifully sort of landscape with key I
(37:59):
don't know what you call it, the actual indigenous tussot
grass surrounding it as well, and the views up and
down the cot I imagine when the wind's blowing. It's
a little bit windy, but it looks a very new house,
open plan layout, and actually always go straight to the
bathroom as well, which makes me think you ituld spend
a bit of time in that shower.
Speaker 3 (38:18):
Every time I come on this show to have you're
talking about bathrooms and how.
Speaker 2 (38:21):
Much you love them. I love a good bathroom.
Speaker 3 (38:23):
Another little feature about this house, or specifically the land
is you know how sometimes you go to a farm
and they've got one of those special places that you
trot your horse around if you're training. Well, it's got
one of those. So when you win you lotto, when
you win your powerball, you'll be able to buy your
kids some horses as well and trot them around.
Speaker 2 (38:44):
I mean, it does look like you don't have too
many neighbors around, doesn't it. In fact, I can't see
trace of any neighbors really, so it does look like
you're sort of yeah, but it's a great looking spot
and the house has been beautifully designed and so go
and check it out. It is, it's on the one
roof site and the address is again it's three seventy
(39:04):
cables stuff road Blind River Marlborough. And if we change
the rules around foreign investors, I doubt that they'll be
able to get their hands on it. Where would you
go for a bolt hole if you were looking for
a property holiday sort of thing, We just you know,
call in because you're Flasheed McKnight.
Speaker 3 (39:19):
Well I'm not Flashead midnight. That's the other one. What
I would say is I'd love to go to Italy.
I'd love a little bolt hole in Italy, probably northern Italy,
just on the other side of Switzerland. That'd be quite nice.
You'd be able to get there, to get up there
for the skiing, you'd be able to get up there
in summer and have a good old time.
Speaker 2 (39:38):
Yeah, I must say that would be My fantasy would
be to have a little bolt hole in Europe, in
France actually. But we went on holiday and to a
while quite a while back before we just after we'd
got married, to go to and among other things, we
went to Provence, which is just a gorgeous thing. And
I thought, oh, that's just a nice little rural area.
(39:59):
It won't be too expensive. The properties there.
Speaker 3 (40:02):
Well, what are we talking?
Speaker 2 (40:04):
Oh well they were You know that you could buy
something for a good couple of million pounds, but the
sort of thing I always had in my e EU wrote,
Should I say, but I look there, we're cheaper properties,
but in terms of what I thought i'd get. But
Provence is a fairly flash area, much as same with
the Revi era. Anyway, Hey, ed, if people want to
check out the week you do, where do they go
for ops Partners?
Speaker 3 (40:23):
Well, either Oprah's Partners or codd In and Said, or
check out the Property Kenemy podcast. That is our daily show.
We do fifteen minutes about property every single day.
Speaker 2 (40:32):
You are a glutton for punishment. Good on you, Good
on you. Hey, nice to see you, mate, and we'll
look forward to next time. We will be back with
the Parents Squad. We have a new guest who is
joining us, and we'll be talking about mental health and
kids and when is it time to get them some
counseling help and should you actually know what they tell
the counselor as well. We'll be discussing that on the
(40:55):
Parents Squad, which is next. It's three and a half
minutes to five on news Talk ZEDB.
Speaker 8 (41:09):
That's the train to see my mother. I look across
the track, seal at the number. There's not the works
that you see.
Speaker 1 (41:23):
You still so. For more from the Weekend Collective, listen
live to news Talks It'd be weekends from three pm,
or follow the podcast on iHeartRadio.
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