November 30, 2025 • 41 mins
We got another OCR cut this week - now down to 2.25% - the lowest it's been since June of 2022.
That was the last one for the year, so a lot of us mortgage holders are trying to figure out whether things are slowing down, and if it's time to fix for a longer term this time around.
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Episode Transcript
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks EDB.
Speaker 2 (00:28):
Yes, welcome in, Welcome back to the Weekend Collective. I'm
Tim Beverage and were inviting your calls and participation on
eight hundred and eighty ten eighty in text on nine
two nine two. This is smart money and so look,
we know that the well, we should have all caught
up with the fact that the ocr was cut this week.
The last run for the year now down to two
(00:50):
point twenty five percent. It's the lowest it's been since
June twenty twenty two. And the message seems to be,
don't expect much more than this. There's still obviously your
opinions a little bit max some people might expect them
might be another small cut or not at all. But
the question has arisen, is it time now to fix
(01:11):
for the longer term? And if not, why not are
you fixing for longer this time? Because remember the last
time money was cheap, there were some smug people who
I think some of them did a five year term.
I think there was a rate where you could fix
for something like around four percent. And we're going to
dig into that anyway. When I with my guest, but
(01:32):
should you. There's the other thing about savings though, because okay,
it's one thing to have the cheap mortgage and that
sounds a good idea, and whether you should use that
cheap rate to pay as much off as you can.
But then again there's the question of savings and investment.
What should be doing? What should you be doing with
the extra cash that's coming from having a lower interest rate?
Should you be throwing it at the mortgage or putting
(01:54):
it somewhere else? So what do you reckon on eight
hundred and eighty ten eighty Let us know what you think,
what your reckons are or text nine two nine two
and joining us to discuss it. She is a personal
wealth educator at Acumen, and she is Lisa Dudson. Lisa,
how are you?
Speaker 3 (02:09):
I'm very well, thank you, but we today like everyone else.
But other than that, pretty good.
Speaker 2 (02:13):
I might just get you to pull that microphone a
There we go, and we got the volume there. I
think we got that about right anyway. Cash rate, Yep,
no surprise that it went down again, although I saw
that the vote was I actually did hear a headline
that one person that was a vote of how many
on the Monetary Policy Council five to one or something
(02:37):
one person voted against, which does imply that there's someone
who thinks that that's low enough. So does that send
us a signal? What are you what were your thoughts
on it?
Speaker 4 (02:49):
Well?
Speaker 3 (02:50):
I think it had to be done because the economy
is and has been pretty challenging couple of years. There
wasn't the word that I was thinking of, but yeah,
well I was pretty lousy. Look but you know, there's
a lot of green shoots out there, but I still
green shoots.
Speaker 2 (03:06):
How many times are we sorry I had I've just
heard with green sheets quite a few times in the
last few days. Yeah, well probably, but I guess that's
that because there are Yeah.
Speaker 3 (03:16):
Absolutely there is. I mean I think when you get
out and about and you start talking to people, you
know there has been a change. Albeit I've only seen
it in the reading of the last four to six weeks,
so it's been quite short term.
Speaker 2 (03:28):
What have you seen in the last four Well, you know,
you talked.
Speaker 3 (03:30):
To people and they said, you know, well, you know
who looking for home? And so six weeks ago they'd
go to an auction and there wouldn't be that many
people there. Now they're saying the auction you know, when
they're going to look at auctions, there's tons of people there,
so and.
Speaker 2 (03:43):
The weather's better, and now the cash rates pop down.
Speaker 3 (03:45):
Yeah, yeah, yeah, And look, I think it was pretty
much a given that the cash rate was going to
the OCA was going to drop down. But interestingly, what
I've been reading in the media the last couple of
days is that a lot of those that drop hasn't
actually been passed on yet into interest rates.
Speaker 2 (04:02):
And why that is that because the banks saw this
one coming and had priced it in.
Speaker 3 (04:08):
Yeah, I mean, I think that's the that's the common
reason they you know, I think everyone was pretty much
saying that it was going to drop and so they
priced it in. Albeit there is a lot of commentary
about the banks making very high margins at the moment,
so you could argue that that they're waiting for, you know,
seeing what the competition will do in terms of dropping rates.
(04:30):
But it is a bit disappointing, I guess, in some
respects for a lot of people who were expecting industrates
to come down a bit further.
Speaker 2 (04:36):
It's a funny one, isn't it not. I Mean, I
don't know if we want to get distracted by the
bank's profits. But since you mentioned it, because when we
hear and we've had Antonia Watson on the show before,
and she's great at fronting up and explaining the bank's position.
Not since this last profit announcement, but she has been
on you know, there have been some banks. I think
she was interviewed on Mike's show if I remember correctly.
(04:57):
But they're very good at actually arguing why they should
earn that money. But the fact why why? The fact
is they're earning more than they do in Australia. They're
making more money out of us than they are in Australia.
Speaker 1 (05:10):
And I.
Speaker 2 (05:12):
That's sort of like the it doesn't matter what the
recipe is. You can tell us why you make the
pudding like that, but the proof of the puddings in
the eating and you're eating more of it.
Speaker 3 (05:20):
Well, that's right. That's pretty hard to argue, right, I Mean,
obviously they've got a responsibility to their shareholders to make
a profit. But if they're making more in New Zealand
than what they are in Australia, then that can't it
doesn't pass the sniff test, does it.
Speaker 1 (05:31):
No?
Speaker 2 (05:31):
I mean, that's the ultimate snift test. It's like everything
you say sounds completely justifiable, and yet at the end
of the day, you're making more money out of us.
So does that mean that there is room for them?
I don't know. Do you think they're just do you
think they've got here we go? And do you think
that maybe the banks think, Okay, we might shift, but
let's hang on to the rates at the moment for
(05:53):
another month or so because it's going to work out
to x amount more for us over the course of
the next year. I mean, it could be a cynical thing,
just like timing.
Speaker 3 (06:01):
And you also it could be too. You know that
a lot of people that have done quite well out
of term deposits in the last couple of years, that's
the future for them is not looking rosy. But it's
a lot of the term deposit money that is actually
provided to leaned out to people to their mortgages. So
they've kind of, you know, they're sort of between those
two things as well. To think about it, and SBS
(06:23):
came out, I think was it maybe about a month
ago with three point ninety nine percent four two years so,
and most to your rates seem to be around about
the mid falls last time I looked, So, you know,
that's interesting SBS.
Speaker 2 (06:36):
Actually it's I think it's SBS also, And because they're
not a bank, there building society don't there. But there's
also the TSB. There are a couple of smaller banks always,
I mean, you've got to admire them. They work their
guts out to get there, and they always try and
gazump the banks by just coming out that little bit cheaper,
don't they.
Speaker 3 (06:53):
Yeah, but they're often a little bit limited also into
in who they lean to. You know, you've you've got
to be an individual. You can't be a company, you
can't be a property investor. It's only if it's time by.
You know, there's a lot that there can be a
lot more limitations on who they'll actually lean to, you know.
So the rates aren't too bad. I mean, I think
if you look at long term, the rates are pretty good,
but they're not as good as what they were three
(07:14):
or four years ago, where you could get you know,
if you were played your cards right, you got two
point nine to nine percent four five years and that
was at two point people nine to nine. Yeah, it
was a fantastic deal for the people that were in
a position to be able to take advantage of that.
Speaker 2 (07:26):
And there are some who have been dreading because when
did they take that?
Speaker 3 (07:30):
Oh what I want to say twenty twenty one, Because.
Speaker 2 (07:34):
There were those back when interest rates were really creeping
up six seven percent, that they were terrified they had
these huge mortgages and that they were loving the two
point nine nine or let's say other people are on
three or whatever, but they were on a great rate
and they've been terrified. But timing couldn't be better for
some of them, I guess, could they?
Speaker 3 (07:52):
No, Well, that's right. I mean, I think you know,
what are they looking? I think it's about five percent
four five years at the moment. I think some people
are hoping that they might be get closer to the
four and a half. But there are a lot of
commentators that think five percent for five years is you know,
is actually a pretty good rate. So you know, and
maybe you know you want to think about splitting your mortgages.
That's another thing to be thinking about as well, so
(08:13):
you know you're not you don't put depending on the
size of yourge and to put everything on two years
or everything on five years, that's another option.
Speaker 2 (08:19):
If you've got a great rate for five years and
plenty of years to go. Why would you split it
if why won't you just have it all on that?
Speaker 3 (08:26):
Well, I guess some people are saying, well, I can
get four and a half percent, but you know the
reality of between four. You know, you may get four
and a half percent or three point nine to nine
for two years, and it's five percent for five years,
but you're still probably better off on a five year rate.
But you really need to talk to your banker and
your mortgage advisor to get them to work out the
actual numbers for you.
Speaker 2 (08:45):
I guess also you'd like to think, if you're an optimist,
you like to think your circumstances are going to change,
and if you're tied into a five year mortgage, you
don't have the option of paying massive amounts off I
think every year for most many mortgages, you can still
pay a small amount every year.
Speaker 3 (09:00):
Cars, like a lot of them, will that you almost
double your monthly payments. So if you've got to, let's
say you're paying two grand a month on your mortgage,
a lot of them they give you a little little app,
a little an app that you know within your banking app,
and then you can kind of play around the slider
and says, okay, well if I up my payments from
two thousand to two and a half thousand, you know
(09:21):
what does that? How much interest does that save me?
And how much faster do I can I actually pay
off my mortgage? And I think that's awesome. It's just
they're not overly avert with telling people that it's there.
Speaker 2 (09:32):
Well, it's yeah, I mean that it's amazing. Just if
you pay even an extra hundred bucks a month or
two hundred bucks a month massive and you work out
the cost of that money over the course of a loan,
You're like, oh, my goodness, I've only done that recently.
I probably didn't do it earlier because I didn't feel
we're in a position to really accelerate much. And then
all of a sudden you are in a position to
maybe push it ahead a bit, and then of course
(09:53):
the cost of living goes up in you.
Speaker 3 (09:54):
Yeah, but even that small amount, like you say, it's like,
it's a shame that banks don't promote it more. I mean,
I could be wrong, but I certainly haven't seen them promoted.
I've almost found those things by accident when I've been
playing around but yeah, as I say, it's a really
worthwhile thing to do, because you know, even if you're
paying one hundred dollars extra a payment and you've still
got twenty years to run on your mortgage, you know,
you might be saving a couple of years and ten
(10:17):
twenty thousand dollars an interest by just that extra hundred
dollars a month.
Speaker 5 (10:21):
Hey.
Speaker 2 (10:22):
So here's the thing though, So if you've got cheaper
money for your mortgage and something might want to be
paying it off more, what should you actually do with
that extra cash If you're thinking, oh, my goodness, my mortgage
has come down a bit, I've got a bit of
extra cash to do it. And a lot of people
do like to pay off their mortgage, and I'd be
one of them because I just hate the idea that
(10:44):
my mortgage is what it is, so I want to
pay it down. But then I was chatting with someone
the other day I said, well, maybe you could do
something that's slightly more interesting with that money in terms
of investments and stuff.
Speaker 3 (10:55):
Yeah, And I think it depends on who you are, right,
So I tend to like having a combined approach. So
that's doing a bit of investing as well as paying
down your mortgage faster. But I think it depends on
the type of person you are in the discipline levels
that you have, because you know, I've run financial education
seminars for gosh a couple of decades, and you know,
(11:15):
I say to people, Okay, well we've done your budgeting
exercise and you've worked out, and you've got a spare
five hundred thousand dollars a month, what do you do
with it? You know? And most people will say, I'll
go on holiday, I'll spend it, I'll do this, I'll
do that, and a very very small percentage of people
will say they'll actually save it. So to me, that
means there's not actually that many people that have got
the discipline to actually save as well as pay their mortgage.
(11:40):
So in some ways I quite like people. So if
you're not overly disciplined, then I think it makes a
lot of sense sometimes to use that little slider on
your banking apps to work out, you know, can you
pay a bit more on your mortgage, because then there's
the compulsion almost to do that. I mean, you can
change it back, but it kind of happens a little
bit more automated automatically, and so I think there's less
discipline involved.
Speaker 2 (12:01):
Yeah, yeah, we'd love your cause on this. On I
eight hundred eighty ten eighty, So the cash rate is
down to two point twenty five percent, it may or
may not go lower. You can give your reckons on that.
Of course, I still wonder if it's going to go
a little bit lower. But anyway, we can get into
that after the break. But I wait, one hundred eighty
ten eighty. What is your strategy based on cheap money?
(12:26):
Because it is it is getting I don't know. I mean,
I don't like to say cheap money because if you've
got a mortgage of a seven six or seven hundred
thousand dollars, it might not matter what the interest rate is,
it's not nothing feels cheap. So all big numbers are
you going to?
Speaker 1 (12:38):
Is it?
Speaker 2 (12:39):
The question we threw out there at the start, is
is it time to fix long term?
Speaker 1 (12:44):
Now?
Speaker 2 (12:44):
Is it finally time to actually go? You know what?
I've been a short term fixer six months or a
year at a time, six months a year, six months
a year. Is it actually time to go? Or you
know what, maybe it's time to actually fix for three,
four or five years, I W eight one hundred eighty
ten eighty. What's your strategy and what are your predictions
for what the OCRAS is going to do? Is this it?
(13:04):
Do you reckon? It is nineteen minutes past five. My
guest is Lisa Dudson will be back in just a
moment News talks. He'd be us talk, said B. This
is a smart money at tim Bebridge with Lisa Dudson.
Money money is now cash raiders two point twenty five percent?
Is it time to fix long term? How should you
structure your mortgage? What are you going to do? Eight
hundred and eighty ten eighty. Let's take some calls. Paul, Hello, Hey,
(13:28):
good a.
Speaker 6 (13:29):
I have a book recommendation. I'm literally currently reading it
while I was listening to the radio. I'm only about
halfway through, so I can't tell you a lot about it.
Speaker 2 (13:38):
You can't tell us all.
Speaker 7 (13:39):
Yeah, I can't tell you how it in no way.
Speaker 6 (13:44):
I'm not even like, I'm not even rushing at all.
It's fascinating both of you. It should be up your alley.
It's called property that miss that built the world.
Speaker 7 (13:54):
By Rowan Moore. Yeah, isn't okay?
Speaker 2 (14:01):
Is it about how we've push pushed so many of
our eggs into the property basket that it's created this
inflated sort of market, is it.
Speaker 7 (14:09):
Yeah, you're spot on.
Speaker 6 (14:11):
It's about like it involves history and society and resources,
and it's basically going into like how so many resources
have become funneled into property being like the number one
economic resource that's driving the world.
Speaker 3 (14:27):
Yeah, but you also have to put that into the
context of the fact that we all live in a property. Right,
what was that I said? You also have to put
that into the context and the fact that everyone lives
in a property. So we need a lot of property
just for you know, for commercial buildings, for retail, for
people to live in. So just by default, of course,
(14:48):
it's going to be a massive sector of society.
Speaker 6 (14:53):
Yeah, that's what the book explaining is to explain how
it became like the number one pervasive economic resource of
the world. I've read a part that I've read so
far is that there was a shift posts like post
World War Two, there was quite a lot of like
state funding what's called like state housing, and that since
(15:16):
there has been a shift away from that. So there's
been a decline in the number of those houses and
more funneling into private housing, which is driving like the
market and rent prices up. I'm not going to go
too much further into it because I haven't read a
lot of the book, but that's what I mean. I
(15:36):
mean it goes into like shifts in society and how
that's pushed prices up, how it's funneled back into buildings
and like areas where developments taking place, and then investors
are looking at those areas. It's a fascinating book. I
would say it's at least in my top three.
Speaker 3 (15:56):
Read good and I think it's great that you're actually reading,
you know, books and educating yourself. So that's awesome.
Speaker 2 (16:02):
Has it put you off property, Paul?
Speaker 7 (16:06):
What the reason?
Speaker 6 (16:09):
I am terrible with the fields of politics and economics,
so I read, like, bugger all of those books this one.
Speaker 2 (16:21):
Yeah.
Speaker 6 (16:22):
It's a lot of my books are about history and journalism,
but this one it's like, I mean, it touches on
economics and politics, but it's like it's based on like
history and society, and it ties economics and politics. It
ties that into like you know how like it's yeah,
(16:44):
it's an amazing book. I'm yeah, Well, thank you recommendation.
Speaker 2 (16:50):
Yeah, no, thanks for the recommendation, Paul. Yeah, yeah, okay, Well,
just if you want to check it out, there you
go these Paul's recommendation on here's a text from from
Dorothy here. We have a thirty mortgage that we've had
for three years. We're planning on selling within the next
year or so, so we weren't too concerned with paying
(17:12):
it off quickly. But we recently found out the council
will be rezoning our area in the next five to
seven years, which would allow our property to be subdivided
and sell for significantly more. If we plan on selling
in five years, should we be focused more on paying
off the mortgage as quickly as possible or doesn't not
really matter since it's a short time frame and we're
(17:34):
going to make truckloads of money, Well.
Speaker 3 (17:37):
That sounds like that's quite an awesome opportunity. Look, look,
I think I think for the most part, i'd say
still focus on paying down that mortgage as fast as
you can, because even though it's a short time frame,
well it's still that short a time frame, you're still
going to increase your equity quite substantially, so then you know,
(17:58):
then you might move to the next house and you've
got a lot more equity to go into your next property.
So I think that's really important. The thing that I
would also think of out is just how you pay
your mortgage down. I mean, if you're disciplined, and I
use that word a lot, I think I really like
revolving credit mortgages or flexi mortgages. So you may want
to have yourself a bill of a flexi facility. So
let's say your morgages five hundred thousand dollars, and a
(18:20):
lot of people would just put that on fixed for
X period of time. I'd potentially look at sort of
having like four hundred or four hundred and fifty on
fixed and having fifty thousand dollars on a flexi mortgage,
and so you pay that down. So when it comes
to that point of the property is available to be subdivided,
you've actually got a bit of money that you can
redraw that you might get some of those initial plans done.
(18:45):
So I think that's quite a smart way of doing it.
So you've just got because once you pay your mortgage
down sometimes and you've got to go through a whole
application process to get access to it again. Whereas I
like the flexi mortgages, because then you've sort of got
it on tap. But again, you've got to be disciplined.
Speaker 2 (18:57):
There's a question in this text that I'm just curious
about it. Since we found that the council will be
rezoning our area in the next five to seven years,
how reliable if you've not okay, well, I mean you do,
it's able as to whether that's going to happen or not.
Speaker 3 (19:12):
Look, I think i'm benefit cynical because I think, well,
there's a lot of probably quite well connected in this industry,
and everyone owns about the council, right, and how long
things take, and how people you know, things that what
you think was going to happen and someone else the
policy changes. So I think there's a lot of foot
flopping going on at the moment, and there's not a
lot of certain unity with counsels. Hopefully that's they're going
(19:34):
to tighten that up over the next couple of years.
But what I would say to that is that just
just keep an eye on it and just re evaluate
it every year, and which is what everyone should do
with their financial world anyway. It's just constantly checking in
on how things are tracking and how you're progressing and
just checking with what's taping with the caumil.
Speaker 2 (19:50):
It's so funny gamble, isn't it. Do we hold onto
the property because we think they're going to rezone, but
then five years might become ten years or whatever. But
then you'd hate to sell it and find out. You know,
you're driving past your old home a couple of years
later and you see, you know, this big development going
up and you're like, god, damn it.
Speaker 3 (20:06):
Well, and you've got also put it to the context
of your life. So let's say that you were planning
on selling in a year's time because you're planning on
having a family and there's not enough space to run
it or not enough bedrooms to have the family. So
that's what that was the driver of you moving. Well
now suddenly, then if you're staying in this place and
it might end up being five or eight or ten
years time, how does that impact your family? So I
(20:27):
guess I'd be thinking about why you were trying to
move in the first place, and if you end up
holding for the long term, what is the other side
of that you know of that hold And it.
Speaker 2 (20:37):
Also depends on what are the policies. So let's assume
that this person's near Auckland. It depends on the housing
intensification policies as well. Absolutely, if the government invests heavily
in driving more and we've got the city rail link
and all that sort of stuff and driving more investment
in town, what effect does it have to your predictions
(21:00):
as to we're going to be rezoned out in the
country for a development. I mean, I don't know what
rules are, what models can you base it on?
Speaker 3 (21:07):
Well, you can't really at the moment because all that's
up for discussion. Right with the sort of throwing out
of the MDRS rules and the sort of the plane
one twenty changes, no one really quite knows what's happening
other than they're talking about doing a lot more intensification
around train stations, right, But so you don't know in
five years time what the plans to go up versus
(21:28):
out look like.
Speaker 2 (21:29):
Yeah, okay, Well they've got a second text that came
in from Dorothy. We want to sell to upsize. As
we already had a significant amount of equity on this property.
It wouldn't impact us that much to stay on for
a few more years.
Speaker 3 (21:42):
If you enjoy it, you know, you could put a
minor dwelling on there as well. If you needed more space,
you know, or put a you know those little rooms
that you can buy the incredit second lounge or an
office or you know, playering for the kids or something
something along those lines. You know, that's something you could
add to give yourself a little bit more space.
Speaker 2 (21:59):
I've got a question that's popped up, and I've meant
to ask someone this for a long time. The you know,
you see the mortgage rates, so we can getting back
to the cash rate and what mortgage rates are available,
and we can see that for five years. You know,
you can get anything from four point nine to nine
percent to five point nine five. I don't know why
anyone will go with that one if you can get
four point nine nine somewhere else. But this it's a
(22:23):
bit of a permanent bugbear of mine. You know how
they have the special loan to value ratio. So if
you've got more equity, basically, if you're borrowing less than
eighty percent of the property's value, you get zero point
six percent off, you get a cheap mortgage rate. And
I've got to say, I mean, I'm lucky enough that
I'm you know, we've got more equity that we get
(22:45):
a lower rate. But I sort of think if the
bank's done its due diligence and they are happy to
lend to you, but they just charge it's I don't know,
I just find something a little bit unfair about the
whole your mortgage is going to Because you're poorer and
you've got less equity, we're going to charge you more.
Or is it the banks given your mortgage? Yeah, well
(23:07):
there's I don't know, I just think it sucks.
Speaker 3 (23:09):
Yeah, well yes, and yes the risk is higher. So
if you've got less equity, so for instance, if I.
Speaker 2 (23:20):
Know it's the risk really that much, well, you think
about it.
Speaker 3 (23:23):
You think about when the property price is peaked in
twenty twenty one, right, and it's pretty widely reported. I
think that it will be safe to say that house
prices and Aukland came down in twenty percent in the
year or so following the peak. Yeah, right, So if
you were one of those people that had under twenty
percent of equity, you would be upside down on your mortgage.
(23:44):
So absolutely there's a real risk there. Also, the banks
can only leaned out a certain amount of money to
people with.
Speaker 2 (23:51):
That's a law as well. Yeah, yeah, okay.
Speaker 3 (23:53):
So that's the other side of it.
Speaker 2 (23:55):
Just just that, you know, it just seems tough that
the people who need the most help have to pay
the higher rate. It's a bit like when you've got
kids you have to go in the school holidays for
a and you pay them however premium.
Speaker 3 (24:07):
Get yourself a good mortgage advisor and you might find
that there's some of that is negotiated better than what
is published.
Speaker 2 (24:13):
Really, Okay, there we go, So good stuff. Okay, I
e one hundred and eighty ten eighty. I've got a
technical issue. So I was about to read the text,
and it keep they keep disappearing. But let's see if
I'm grab it while the screen's alive. Here's another text
from Mike borrowed home loan seven figure sum so over
a million bucks, five year fixed three point three six
(24:35):
which ends on October the twenty sixth. So hang on
October twenty six I next year. I next year. I'm
assuming they didn't mean anyway on lent to my property
business to buy commercial property looking to refix another not
five years. I don't think he's he Is he just
telling us what he's doing? Is he actually was asking
(24:56):
for advice there. I don't know.
Speaker 3 (24:57):
Have you read the full question?
Speaker 2 (24:58):
Yeah, that's it. It says borrowed home loan seven figure sum,
five year fixed three point three six percent, which ends
October two ah, which ends October twenty sixth Oh, must
be next year anyway? Looking to refix another I think
he's just telling us he's going to refix for another
five years. Okay, he's probably feeling pretty good about it.
Speaker 3 (25:17):
Well. One of the advantages of fixing for five years
is you know exactly what your mortgage is going to
be over that period of time, right, so it becomes
much much easier to budget.
Speaker 2 (25:26):
Right, Okay. Another text here highly so, just wonder if
it's worth me changing from a rot My god, I
can't even say it. Just wonder if it's worth me
changing from revolving to fix for two or three years.
I've had twenty K still left to pay for years
now as circumstances go up and down, so I haven't
(25:47):
been able to knock it off. Also helping someone else
on and off, which is probably why. However, I noticed
the revolving rates at kiwibank is still quite high. Your
thoughts on what I can do to pay this faster please, Well, I.
Speaker 3 (25:58):
Guess there's a couple of things in there, as there
always is. I think the rates for a revolving credit
are always a bit higher than what they are for
a fact, so you do save a bit of money
by going fixed as as opposed to keeping floating or
a volved credit. However, on twenty thousand dollars over a
couple of years, the actual total dollar value is pretty minimal.
(26:20):
I think the question would be is probably looking at
your lifestyle and going, well, what's actually going to be
the most effective for you? So I get what I'm
hearing is that you're having a really hard time paying
that twenty grand off because of different circumstances. Is that
going to change? And so if you did make it fixed,
would that inhibit you through some of these changing circumstances.
(26:43):
So it's not necessarily an easy one to answer. It's
really looking at your own situation and think, well, what's
actually going to be the most effective for you? And
you know, we've got very limited information on what's going
on in your world.
Speaker 2 (26:56):
Do you think more people should consider splitting their mortgages
across multiple terms? Is it something that a lot of
people don't even think about They just go, oh, just
the end of the question from the bank, how long
do you want to fix for it, I'll do it
for three years. And so they just fixed the whole
lot for three years, rather than going I might fix
for one year twenty percent of it, and I might
fix for three years or four years.
Speaker 3 (27:17):
Look, I think so, And I think this is where
working with a mortgage advisor I'm a big fan of,
because you start having those conversations and getting a little
bit more advice. And what we've seen over the last
four years is we've had interest rates since low is
I think two point two percent it got for one
year post COVID. I mean that was probably extraordiny circumstances,
and then we've gone right up to sort of over seven.
(27:37):
So that's a massive swing, and it has a massive
impact on your monthly payments, particularly if you've got quite
a large mortgage. And so I guess when you can
split your loan over different interest rates, when one comes off,
you're not going to have such a big impact if
rates or increased as if you would have it all
came off at the same time. So absolutely there's some
(27:59):
benefit of doing that.
Speaker 2 (28:00):
Right let's take some more calls. Scott, good afternoon, doing good. Thanks,
what's up?
Speaker 5 (28:08):
I just want to clarify how she said the banks
lend money. They don't lend the money they created out
of thin air? Here and here and lies the problem the.
Speaker 3 (28:21):
Banks do that? And how do they create it out
of thin air.
Speaker 5 (28:24):
When they issue alone?
Speaker 2 (28:27):
Yeah, so.
Speaker 5 (28:30):
What do you mean that money never existed until they
issue that loan? They push a little button. All they
got to do is push a button and bingo, there's
the money in your account.
Speaker 2 (28:44):
Uh, what do you mean? It's okay, I'm not a
banker in terms of the expertise, and that if it's
that easy, here come you can't just push a button
and put the money in your.
Speaker 5 (28:53):
Account, because because I'll go to jail.
Speaker 2 (28:56):
No, okay? Uh? And where did you where'd you get
this idea from? That they just I've heard this before
on talkback by the way, that the bank's just you know,
talking invisible money and they just click buttons and things.
But yeah, where did you get this idea from?
Speaker 5 (29:09):
It's not an idea. That's the way the banking is
called fractional reserve banking, so they don't have to hold
a little bit of money, and then when they decide
to issue alone, they just create that money out of
send there it goes right into my If I take
out a loan to buy a house, that money goes
(29:30):
into my bank to pay for the house. But that
money is created by the banks out of nothing.
Speaker 2 (29:38):
So because they created an electronic form. Okay, so what.
Speaker 3 (29:44):
You're saying is they're kind of borrowing it kind of
like quite kind of like we are when they need
They're not.
Speaker 5 (29:49):
No, no, no, they're not borrowing it, creating it literally
got a printing machine.
Speaker 2 (29:58):
I don't think they literally have a print printing machine,
because you're suddenly sounds about bonkers. I know that there.
He's talking about the fact that they issue with the
loan and electronic form, and some people it's been interpreted
sort of doing it out of thin air and the
sense of having no limits. I would need to dig
into that a bit more to explain that theory, which
(30:19):
I think is kind of it's a kind of financial
conspiracy theory or misunderstood about just the nature of banking.
But we need a banker and editor.
Speaker 3 (30:27):
Yeah, I tend to agree with it.
Speaker 2 (30:30):
Okay, Anyway, I guess the thing is who cares what
they're doing. Actually, it's the thing is that you, I
or anyone else is borrowing money from the bank has
to pay it back. So what are you going to
do about it? I should have asked, asked him what he
does it mean? He's not going to take a loan out?
Speaker 3 (30:46):
Yeah, And I was going to say, what's the ultimate
point in that comment.
Speaker 2 (30:50):
I'll ask chat Gpt what that's all about in the
break and see if it comes yeah, because it's quite
chatty with me these day's high tim anyway. We want
your calls though, in terms of the ocr and what
do you reckon you should do because it's probably getting
towards the bottom. Dave never asked Lisa about her predictions
whether she think that's it it's two point two five?
Will it get cheaper? So we'll dig into that in
(31:12):
a moment after the break. You can give your reckons
as well. On eight hundred and eighty ten eighty, it's
nineteen and a half news talk, said b I did
say it. Ask chat GPT about the earlier call about
how the banks create money out of thin air, and
I've heard it quite a few times and it seems
like a simplification. In fact, chat GPT, I did just say,
I've just had someone calling and say, when banks lend money,
(31:32):
they're just printing money out of thin air? Can you
explain that? And is it? And it says it's a
bit counterintuitive, but the explainer in one sentences it sounds
like conspiracy talk, is actually how the system works. It's
called fractional reserve banking, which is what the caller mentioned.
So when you put money in the bank, you keep
a small chunk in reserve and lend the rest out.
(31:53):
You still see your balance in the account, and the
borrower now has new money to spend. So they yes,
they do create money when they lend, but it's not
unlimited wizardry. They're heavily regulated and the money and can
only lend if someone who can actually pay it back.
And actually the money might be created, but when the
loan is repaid, that money disappears as well, so it's
not money that's created forever it's created and then it
(32:16):
gets paid back. So it's but it is, I mean.
Speaker 3 (32:18):
It is yea, yeah, yeah, yeah, yeah, yeah it is.
And I suppose that's when I was going to be
for about the the when you've got a loan to
value ratio under twenty percent. That comes into that those
those lending rules, those regulatory leading rules where they can
only lean a certain amount over that to people that
have got less than a twenty percent deposit. So that's
all tied into that same.
Speaker 2 (32:39):
That's fascinating, isn't it. And the bank and there's heavy
regulations because the banks are respondible responsible for that money
that they've loaned out.
Speaker 3 (32:45):
So yes, but yeah, just probably the way it was positioned.
Speaker 2 (32:50):
I think it was just the way it was a positioned,
like they're just creating it and all of a sudden,
there's a million dollars that exists for everyone, but when
you pay it back, it disappears. So that it says
money comes into existence when the banks lend, and it
vanishes when the loans are repaid. I feel like there's
a line from Monty Python I want to read out there.
But anyway, let's take some more calls. Ian. Hello, Hello, Ian,
(33:14):
Oh good good?
Speaker 7 (33:15):
Thanks?
Speaker 2 (33:16):
Yep, hello Hello. Well I can't actually tell you what Ian,
I'm just going to put you back to my producer
and we'll get you to come off that speakerphone or
whatever delay you've got going on here? Oh god, another
person somebody just texted saying about the fraction or reserve
banking model. Gosh, we could really go to town on that,
couldn't we, Lisa?
Speaker 3 (33:35):
We could.
Speaker 2 (33:37):
Hi having to having to return to Auckland from the
Bay of Plenty for work. Mortgage free down here in
house value one point twenty five million, But advice, I'm
getting a mortgage. I still have five to seven years
to work and husband is over seventy on late fifties.
Is this possible if we need an extra one hundred
k for an Auckland home? Thanks?
Speaker 5 (33:55):
Uh?
Speaker 3 (33:55):
Yeah, I mean I think the banks will just assess
you from a risk perspective, So they'll just be going,
what's your overall financial position, what's your earning capacity? How
easy is it for you to repay though funds? What's
your exit strategy giving the fact that you've got five
to six years to go, you know, will you'll be
able to pay off that extra hundred k and that
five to six years? If not, you know, are you
planning on selling that house and then downsizing again? So
(34:17):
they want to know what that exit strategy is given
what your age is.
Speaker 2 (34:20):
That is a tricky one. Isn't it if you are
having to relocate to a more expensive market with maybe
you know, the majority of your working life in the
rear vision mirror, isn't it?
Speaker 3 (34:30):
But then you also too, you could potentially rent out
your home in the region and rent in Auckland. You
know you're still in that if you're planning on going back,
so you know that's another option as well. You don't
necessarily have to buy and.
Speaker 2 (34:41):
Some I think that also depends on where in the
bad plenty you are. So for instance, if you're having
to move from Mount Monginui Beach, possibly you're going to
be all right. Yeah, yeah, anyway, let's I think we've
got ian again, get a hello oh much better.
Speaker 4 (34:59):
Yeah, yeah, I'm not just talking about what you're talking about.
I think and down the loan crooker and especially the
low interest rates. I think it would be the time
to focus. But that's what the other scenario with the
banks for leanding. I think in this fundamentally the problem
the first home buyers that are renting, you know, whether
(35:22):
you're on the unemployment benefit or not. An investor can
come into this country by a home and get a
tenant that's on the unemployment benefit in the text is
still going to end up paying for the house for
the foreign investor through the social welfare system, which in
(35:43):
itself is fundamentally go wrong because they'll come into the
twins think deposit taxpayer will basically pay off the house
for them to the unemployment benefit with their tenant house
spots go up.
Speaker 1 (35:58):
Yeah, I'm not quite sure that.
Speaker 4 (36:01):
What wrong?
Speaker 3 (36:04):
You are saying that if someone immigrates to New Zealand
and they are in a financial position to be able
to put a twenty percent deposit down and borrow to
buy that property, and instead of living in it, they
rent it out, and and if and if they rented
out to someone that's working, you know, or they may
rent it out to someone that's on welfare. But then
(36:27):
if they didn't live in that house and they lived
in somewhere else, there would still be a payment for
their welfare for their housing.
Speaker 4 (36:36):
So I'm not sure that's Yeah, for sure, that's right.
But then why should try and investors able to come
in by house? And I think I think New Zealand.
Speaker 2 (36:49):
I think they can't. Really there are limits on which
foreign investors just can't come. It's interesting something really significant
into the country so.
Speaker 3 (36:59):
Yeah, so that's only if they if they immigrate here
and they become a resident.
Speaker 4 (37:05):
Well it even goes for mum and dad investors to invest.
Speaker 3 (37:10):
But if mom and dad, so you're saying that you
don't like that, mum and dad can buy an extra
property and rent it out to help with their financial.
Speaker 4 (37:22):
I think they can rent it out. They've rented out
to someone that's rooking, not to someone that's getting out anyway,
And then.
Speaker 2 (37:31):
That's that's a bit more of a diverse conversation around
social welfare. But where the money comes from is probably
irrelevant investor's point of view.
Speaker 3 (37:38):
Well, and you don't want investors to be discriminating against
who their tenants are because whether they're on welfare or
whether or not on welfare. I think that that's not
ideal either.
Speaker 2 (37:47):
It's a little bit off the topic. But you know,
how we discuss smart money and property and money and
what money makes the world go around is that as
the song in Cabaret goes. But we'll be back in
just a moment, because I still haven't quiz you about
where we think we I see how is going to go,
whether it's going to bottom out or not. But when
we're running out of time with Lisa Dudson eight hundred
eighty ten eight. I don't think I should put the
(38:08):
number out because we're not going to have time for
any more calls, but we will be back in just
a moment. It is nine minutes past five. It's news
Talk said be just a couple of minutes ago with
Lisa Dudson. By the way, if you've listened, if you've
missed any part of the show, you want to go
and check it out, go and look for the Weekend
Collective on iHeartRadio. By the way, I think I gave
the time some bizarre timer. Did I meant to say
(38:29):
it was so many minutes to sex? And somebody I
think somebody suggests I might have said it was something
past five. Anyway, it's six minutes to sex right now, Lisa,
with a couple of minutes to go, it's two point
twenty five the ocr Are we done? Do you reckon?
What's your guess at the Reserve Bank?
Speaker 3 (38:46):
You know, like most of us, we don't really know.
I think it would just really depend on how the
economy recovers in the next few months, and if there
was going to be another cat I think that would
be one more maybe one.
Speaker 2 (39:00):
Little shift yeap, Yeah, because I mean you used that
wonderful tea had quite a few green shoots. But it's
one of those things where it seems that the economists
are talking about that, but the man and woman in
the street is not talking about it yet.
Speaker 3 (39:14):
Yeah, there's that. There was that great show that great
Jack Tam did on Tuesday night. It's on TV one
on demand, You Me and the Economy, and I thought
that was actually a great show and in terms of
some of the things that are starting to happen, and
they had the guy from CEO of Ports of Auckland
and there I think forgot the numbers right. They've they
bought one hundred and fifty thousand cars last year, it's
(39:35):
two hundred thousand on track for two hundred thousand this year.
They're bringing tons of cement into the country, which is
you know, going into construction. I think they've taken on
two hundred and fifty staff in the last six weeks.
So there's a lot of those antidotes that you're hearing.
You know, I'm talking to business people all the time,
and they are starting to see businesses picking up, orders
(39:55):
are picking up so it's only been very recently, but
certainly there seems to be some quite good news coming.
But again, when it starts, it's not like everyone knows that.
Speaker 2 (40:05):
It's nice to hear a little bit of Yes. I
heard quite a few people talking about that, and they
thought it was going to be a gloom fest. But
it was more buoyant than they thought, and a few
people were saying, gosh, well maybe things aren't so bad.
Speaker 3 (40:15):
Yeah, it just takes a little bit of time for
it to filter through.
Speaker 2 (40:18):
Of course, we'll be getting the figures from the Black
Friday sales, which is Black Friday last for about how
many weeks. Goodness May did you do anything for Black Friday?
Speaker 3 (40:25):
No, it's just too much of a zoo out there,
like that's hard, that's life, baby, Lisa, Thank you so much.
Speaker 2 (40:33):
Welcome to go and check out our podcast. By the way,
you might in particular the politics interview with the head
of the GPS just about the Labour's announcement I thought
was quite interesting. Oh, I would say that because it's
on my show, but it was very interesting anyway, Thanks
to my producer, Tire Award Sunday at six as next
we'll look forward to your company next weekend. Thanks for listening,
(40:54):
have a great evening. Now I can come in and.
Speaker 1 (41:06):
We're as on two for more from the Weekend Collective.
Listen live to newth Talks it'd be weekends from three pm,
or follow the podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News Talks EDB.
Speaker 2 (00:28):
Yes, welcome in, Welcome back to the Weekend Collective. I'm
Tim Beverage and were inviting your calls and participation on
eight hundred and eighty ten eighty in text on nine
two nine two. This is smart money and so look,
we know that the well, we should have all caught
up with the fact that the ocr was cut this week.
The last run for the year now down to two
(00:50):
point twenty five percent. It's the lowest it's been since
June twenty twenty two. And the message seems to be,
don't expect much more than this. There's still obviously your
opinions a little bit max some people might expect them
might be another small cut or not at all. But
the question has arisen, is it time now to fix
(01:11):
for the longer term? And if not, why not are
you fixing for longer this time? Because remember the last
time money was cheap, there were some smug people who
I think some of them did a five year term.
I think there was a rate where you could fix
for something like around four percent. And we're going to
dig into that anyway. When I with my guest, but
(01:32):
should you. There's the other thing about savings though, because okay,
it's one thing to have the cheap mortgage and that
sounds a good idea, and whether you should use that
cheap rate to pay as much off as you can.
But then again there's the question of savings and investment.
What should be doing? What should you be doing with
the extra cash that's coming from having a lower interest rate?
Should you be throwing it at the mortgage or putting
(01:54):
it somewhere else? So what do you reckon on eight
hundred and eighty ten eighty Let us know what you think,
what your reckons are or text nine two nine two
and joining us to discuss it. She is a personal
wealth educator at Acumen, and she is Lisa Dudson. Lisa,
how are you?
Speaker 3 (02:09):
I'm very well, thank you, but we today like everyone else.
But other than that, pretty good.
Speaker 2 (02:13):
I might just get you to pull that microphone a
There we go, and we got the volume there. I
think we got that about right anyway. Cash rate, Yep,
no surprise that it went down again, although I saw
that the vote was I actually did hear a headline
that one person that was a vote of how many
on the Monetary Policy Council five to one or something
(02:37):
one person voted against, which does imply that there's someone
who thinks that that's low enough. So does that send
us a signal? What are you what were your thoughts
on it?
Speaker 4 (02:49):
Well?
Speaker 3 (02:50):
I think it had to be done because the economy
is and has been pretty challenging couple of years. There
wasn't the word that I was thinking of, but yeah,
well I was pretty lousy. Look but you know, there's
a lot of green shoots out there, but I still
green shoots.
Speaker 2 (03:06):
How many times are we sorry I had I've just
heard with green sheets quite a few times in the
last few days. Yeah, well probably, but I guess that's
that because there are Yeah.
Speaker 3 (03:16):
Absolutely there is. I mean I think when you get
out and about and you start talking to people, you
know there has been a change. Albeit I've only seen
it in the reading of the last four to six weeks,
so it's been quite short term.
Speaker 2 (03:28):
What have you seen in the last four Well, you know,
you talked.
Speaker 3 (03:30):
To people and they said, you know, well, you know
who looking for home? And so six weeks ago they'd
go to an auction and there wouldn't be that many
people there. Now they're saying the auction you know, when
they're going to look at auctions, there's tons of people there,
so and.
Speaker 2 (03:43):
The weather's better, and now the cash rates pop down.
Speaker 3 (03:45):
Yeah, yeah, yeah, And look, I think it was pretty
much a given that the cash rate was going to
the OCA was going to drop down. But interestingly, what
I've been reading in the media the last couple of
days is that a lot of those that drop hasn't
actually been passed on yet into interest rates.
Speaker 2 (04:02):
And why that is that because the banks saw this
one coming and had priced it in.
Speaker 3 (04:08):
Yeah, I mean, I think that's the that's the common
reason they you know, I think everyone was pretty much
saying that it was going to drop and so they
priced it in. Albeit there is a lot of commentary
about the banks making very high margins at the moment,
so you could argue that that they're waiting for, you know,
seeing what the competition will do in terms of dropping rates.
(04:30):
But it is a bit disappointing, I guess, in some
respects for a lot of people who were expecting industrates
to come down a bit further.
Speaker 2 (04:36):
It's a funny one, isn't it not. I Mean, I
don't know if we want to get distracted by the
bank's profits. But since you mentioned it, because when we
hear and we've had Antonia Watson on the show before,
and she's great at fronting up and explaining the bank's position.
Not since this last profit announcement, but she has been
on you know, there have been some banks. I think
she was interviewed on Mike's show if I remember correctly.
(04:57):
But they're very good at actually arguing why they should
earn that money. But the fact why why? The fact
is they're earning more than they do in Australia. They're
making more money out of us than they are in Australia.
Speaker 1 (05:10):
And I.
Speaker 2 (05:12):
That's sort of like the it doesn't matter what the
recipe is. You can tell us why you make the
pudding like that, but the proof of the puddings in
the eating and you're eating more of it.
Speaker 3 (05:20):
Well, that's right. That's pretty hard to argue, right, I Mean,
obviously they've got a responsibility to their shareholders to make
a profit. But if they're making more in New Zealand
than what they are in Australia, then that can't it
doesn't pass the sniff test, does it.
Speaker 1 (05:31):
No?
Speaker 2 (05:31):
I mean, that's the ultimate snift test. It's like everything
you say sounds completely justifiable, and yet at the end
of the day, you're making more money out of us.
So does that mean that there is room for them?
I don't know. Do you think they're just do you
think they've got here we go? And do you think
that maybe the banks think, Okay, we might shift, but
let's hang on to the rates at the moment for
(05:53):
another month or so because it's going to work out
to x amount more for us over the course of
the next year. I mean, it could be a cynical thing,
just like timing.
Speaker 3 (06:01):
And you also it could be too. You know that
a lot of people that have done quite well out
of term deposits in the last couple of years, that's
the future for them is not looking rosy. But it's
a lot of the term deposit money that is actually
provided to leaned out to people to their mortgages. So
they've kind of, you know, they're sort of between those
two things as well. To think about it, and SBS
(06:23):
came out, I think was it maybe about a month
ago with three point ninety nine percent four two years so,
and most to your rates seem to be around about
the mid falls last time I looked, So, you know,
that's interesting SBS.
Speaker 2 (06:36):
Actually it's I think it's SBS also, And because they're
not a bank, there building society don't there. But there's
also the TSB. There are a couple of smaller banks always,
I mean, you've got to admire them. They work their
guts out to get there, and they always try and
gazump the banks by just coming out that little bit cheaper,
don't they.
Speaker 3 (06:53):
Yeah, but they're often a little bit limited also into
in who they lean to. You know, you've you've got
to be an individual. You can't be a company, you
can't be a property investor. It's only if it's time by.
You know, there's a lot that there can be a
lot more limitations on who they'll actually lean to, you know.
So the rates aren't too bad. I mean, I think
if you look at long term, the rates are pretty good,
but they're not as good as what they were three
(07:14):
or four years ago, where you could get you know,
if you were played your cards right, you got two
point nine to nine percent four five years and that
was at two point people nine to nine. Yeah, it
was a fantastic deal for the people that were in
a position to be able to take advantage of that.
Speaker 2 (07:26):
And there are some who have been dreading because when
did they take that?
Speaker 3 (07:30):
Oh what I want to say twenty twenty one, Because.
Speaker 2 (07:34):
There were those back when interest rates were really creeping
up six seven percent, that they were terrified they had
these huge mortgages and that they were loving the two
point nine nine or let's say other people are on
three or whatever, but they were on a great rate
and they've been terrified. But timing couldn't be better for
some of them, I guess, could they?
Speaker 3 (07:52):
No, Well, that's right. I mean, I think you know,
what are they looking? I think it's about five percent
four five years at the moment. I think some people
are hoping that they might be get closer to the
four and a half. But there are a lot of
commentators that think five percent for five years is you know,
is actually a pretty good rate. So you know, and
maybe you know you want to think about splitting your mortgages.
That's another thing to be thinking about as well, so
(08:13):
you know you're not you don't put depending on the
size of yourge and to put everything on two years
or everything on five years, that's another option.
Speaker 2 (08:19):
If you've got a great rate for five years and
plenty of years to go. Why would you split it
if why won't you just have it all on that?
Speaker 3 (08:26):
Well, I guess some people are saying, well, I can
get four and a half percent, but you know the
reality of between four. You know, you may get four
and a half percent or three point nine to nine
for two years, and it's five percent for five years,
but you're still probably better off on a five year rate.
But you really need to talk to your banker and
your mortgage advisor to get them to work out the
actual numbers for you.
Speaker 2 (08:45):
I guess also you'd like to think, if you're an optimist,
you like to think your circumstances are going to change,
and if you're tied into a five year mortgage, you
don't have the option of paying massive amounts off I
think every year for most many mortgages, you can still
pay a small amount every year.
Speaker 3 (09:00):
Cars, like a lot of them, will that you almost
double your monthly payments. So if you've got to, let's
say you're paying two grand a month on your mortgage,
a lot of them they give you a little little app,
a little an app that you know within your banking app,
and then you can kind of play around the slider
and says, okay, well if I up my payments from
two thousand to two and a half thousand, you know
(09:21):
what does that? How much interest does that save me?
And how much faster do I can I actually pay
off my mortgage? And I think that's awesome. It's just
they're not overly avert with telling people that it's there.
Speaker 2 (09:32):
Well, it's yeah, I mean that it's amazing. Just if
you pay even an extra hundred bucks a month or
two hundred bucks a month massive and you work out
the cost of that money over the course of a loan,
You're like, oh, my goodness, I've only done that recently.
I probably didn't do it earlier because I didn't feel
we're in a position to really accelerate much. And then
all of a sudden you are in a position to
maybe push it ahead a bit, and then of course
(09:53):
the cost of living goes up in you.
Speaker 3 (09:54):
Yeah, but even that small amount, like you say, it's like,
it's a shame that banks don't promote it more. I mean,
I could be wrong, but I certainly haven't seen them promoted.
I've almost found those things by accident when I've been
playing around but yeah, as I say, it's a really
worthwhile thing to do, because you know, even if you're
paying one hundred dollars extra a payment and you've still
got twenty years to run on your mortgage, you know,
you might be saving a couple of years and ten
(10:17):
twenty thousand dollars an interest by just that extra hundred
dollars a month.
Speaker 5 (10:21):
Hey.
Speaker 2 (10:22):
So here's the thing though, So if you've got cheaper
money for your mortgage and something might want to be
paying it off more, what should you actually do with
that extra cash If you're thinking, oh, my goodness, my mortgage
has come down a bit, I've got a bit of
extra cash to do it. And a lot of people
do like to pay off their mortgage, and I'd be
one of them because I just hate the idea that
(10:44):
my mortgage is what it is, so I want to
pay it down. But then I was chatting with someone
the other day I said, well, maybe you could do
something that's slightly more interesting with that money in terms
of investments and stuff.
Speaker 3 (10:55):
Yeah, And I think it depends on who you are, right,
So I tend to like having a combined approach. So
that's doing a bit of investing as well as paying
down your mortgage faster. But I think it depends on
the type of person you are in the discipline levels
that you have, because you know, I've run financial education
seminars for gosh a couple of decades, and you know,
(11:15):
I say to people, Okay, well we've done your budgeting
exercise and you've worked out, and you've got a spare
five hundred thousand dollars a month, what do you do
with it? You know? And most people will say, I'll
go on holiday, I'll spend it, I'll do this, I'll
do that, and a very very small percentage of people
will say they'll actually save it. So to me, that
means there's not actually that many people that have got
the discipline to actually save as well as pay their mortgage.
(11:40):
So in some ways I quite like people. So if
you're not overly disciplined, then I think it makes a
lot of sense sometimes to use that little slider on
your banking apps to work out, you know, can you
pay a bit more on your mortgage, because then there's
the compulsion almost to do that. I mean, you can
change it back, but it kind of happens a little
bit more automated automatically, and so I think there's less
discipline involved.
Speaker 2 (12:01):
Yeah, yeah, we'd love your cause on this. On I
eight hundred eighty ten eighty, So the cash rate is
down to two point twenty five percent, it may or
may not go lower. You can give your reckons on that.
Of course, I still wonder if it's going to go
a little bit lower. But anyway, we can get into
that after the break. But I wait, one hundred eighty
ten eighty. What is your strategy based on cheap money?
(12:26):
Because it is it is getting I don't know. I mean,
I don't like to say cheap money because if you've
got a mortgage of a seven six or seven hundred
thousand dollars, it might not matter what the interest rate is,
it's not nothing feels cheap. So all big numbers are
you going to?
Speaker 1 (12:38):
Is it?
Speaker 2 (12:39):
The question we threw out there at the start, is
is it time to fix long term?
Speaker 1 (12:44):
Now?
Speaker 2 (12:44):
Is it finally time to actually go? You know what?
I've been a short term fixer six months or a
year at a time, six months a year, six months
a year. Is it actually time to go? Or you
know what, maybe it's time to actually fix for three,
four or five years, I W eight one hundred eighty
ten eighty. What's your strategy and what are your predictions
for what the OCRAS is going to do? Is this it?
(13:04):
Do you reckon? It is nineteen minutes past five. My
guest is Lisa Dudson will be back in just a
moment News talks. He'd be us talk, said B. This
is a smart money at tim Bebridge with Lisa Dudson.
Money money is now cash raiders two point twenty five percent?
Is it time to fix long term? How should you
structure your mortgage? What are you going to do? Eight
hundred and eighty ten eighty. Let's take some calls. Paul, Hello, Hey,
(13:28):
good a.
Speaker 6 (13:29):
I have a book recommendation. I'm literally currently reading it
while I was listening to the radio. I'm only about
halfway through, so I can't tell you a lot about it.
Speaker 2 (13:38):
You can't tell us all.
Speaker 7 (13:39):
Yeah, I can't tell you how it in no way.
Speaker 6 (13:44):
I'm not even like, I'm not even rushing at all.
It's fascinating both of you. It should be up your alley.
It's called property that miss that built the world.
Speaker 7 (13:54):
By Rowan Moore. Yeah, isn't okay?
Speaker 2 (14:01):
Is it about how we've push pushed so many of
our eggs into the property basket that it's created this
inflated sort of market, is it.
Speaker 7 (14:09):
Yeah, you're spot on.
Speaker 6 (14:11):
It's about like it involves history and society and resources,
and it's basically going into like how so many resources
have become funneled into property being like the number one
economic resource that's driving the world.
Speaker 3 (14:27):
Yeah, but you also have to put that into the
context of the fact that we all live in a property. Right,
what was that I said? You also have to put
that into the context and the fact that everyone lives
in a property. So we need a lot of property
just for you know, for commercial buildings, for retail, for
people to live in. So just by default, of course,
(14:48):
it's going to be a massive sector of society.
Speaker 6 (14:53):
Yeah, that's what the book explaining is to explain how
it became like the number one pervasive economic resource of
the world. I've read a part that I've read so
far is that there was a shift posts like post
World War Two, there was quite a lot of like
state funding what's called like state housing, and that since
(15:16):
there has been a shift away from that. So there's
been a decline in the number of those houses and
more funneling into private housing, which is driving like the
market and rent prices up. I'm not going to go
too much further into it because I haven't read a
lot of the book, but that's what I mean. I
(15:36):
mean it goes into like shifts in society and how
that's pushed prices up, how it's funneled back into buildings
and like areas where developments taking place, and then investors
are looking at those areas. It's a fascinating book. I
would say it's at least in my top three.
Speaker 3 (15:56):
Read good and I think it's great that you're actually reading,
you know, books and educating yourself. So that's awesome.
Speaker 2 (16:02):
Has it put you off property, Paul?
Speaker 7 (16:06):
What the reason?
Speaker 6 (16:09):
I am terrible with the fields of politics and economics,
so I read, like, bugger all of those books this one.
Speaker 2 (16:21):
Yeah.
Speaker 6 (16:22):
It's a lot of my books are about history and journalism,
but this one it's like, I mean, it touches on
economics and politics, but it's like it's based on like
history and society, and it ties economics and politics. It
ties that into like you know how like it's yeah,
(16:44):
it's an amazing book. I'm yeah, Well, thank you recommendation.
Speaker 2 (16:50):
Yeah, no, thanks for the recommendation, Paul. Yeah, yeah, okay, Well,
just if you want to check it out, there you
go these Paul's recommendation on here's a text from from
Dorothy here. We have a thirty mortgage that we've had
for three years. We're planning on selling within the next
year or so, so we weren't too concerned with paying
(17:12):
it off quickly. But we recently found out the council
will be rezoning our area in the next five to
seven years, which would allow our property to be subdivided
and sell for significantly more. If we plan on selling
in five years, should we be focused more on paying
off the mortgage as quickly as possible or doesn't not
really matter since it's a short time frame and we're
(17:34):
going to make truckloads of money, Well.
Speaker 3 (17:37):
That sounds like that's quite an awesome opportunity. Look, look,
I think I think for the most part, i'd say
still focus on paying down that mortgage as fast as
you can, because even though it's a short time frame,
well it's still that short a time frame, you're still
going to increase your equity quite substantially, so then you know,
(17:58):
then you might move to the next house and you've
got a lot more equity to go into your next property.
So I think that's really important. The thing that I
would also think of out is just how you pay
your mortgage down. I mean, if you're disciplined, and I
use that word a lot, I think I really like
revolving credit mortgages or flexi mortgages. So you may want
to have yourself a bill of a flexi facility. So
let's say your morgages five hundred thousand dollars, and a
(18:20):
lot of people would just put that on fixed for
X period of time. I'd potentially look at sort of
having like four hundred or four hundred and fifty on
fixed and having fifty thousand dollars on a flexi mortgage,
and so you pay that down. So when it comes
to that point of the property is available to be subdivided,
you've actually got a bit of money that you can
redraw that you might get some of those initial plans done.
(18:45):
So I think that's quite a smart way of doing it.
So you've just got because once you pay your mortgage
down sometimes and you've got to go through a whole
application process to get access to it again. Whereas I
like the flexi mortgages, because then you've sort of got
it on tap. But again, you've got to be disciplined.
Speaker 2 (18:57):
There's a question in this text that I'm just curious
about it. Since we found that the council will be
rezoning our area in the next five to seven years,
how reliable if you've not okay, well, I mean you do,
it's able as to whether that's going to happen or not.
Speaker 3 (19:12):
Look, I think i'm benefit cynical because I think, well,
there's a lot of probably quite well connected in this industry,
and everyone owns about the council, right, and how long
things take, and how people you know, things that what
you think was going to happen and someone else the
policy changes. So I think there's a lot of foot
flopping going on at the moment, and there's not a
lot of certain unity with counsels. Hopefully that's they're going
(19:34):
to tighten that up over the next couple of years.
But what I would say to that is that just
just keep an eye on it and just re evaluate
it every year, and which is what everyone should do
with their financial world anyway. It's just constantly checking in
on how things are tracking and how you're progressing and
just checking with what's taping with the caumil.
Speaker 2 (19:50):
It's so funny gamble, isn't it. Do we hold onto
the property because we think they're going to rezone, but
then five years might become ten years or whatever. But
then you'd hate to sell it and find out. You know,
you're driving past your old home a couple of years
later and you see, you know, this big development going
up and you're like, god, damn it.
Speaker 3 (20:06):
Well, and you've got also put it to the context
of your life. So let's say that you were planning
on selling in a year's time because you're planning on
having a family and there's not enough space to run
it or not enough bedrooms to have the family. So
that's what that was the driver of you moving. Well
now suddenly, then if you're staying in this place and
it might end up being five or eight or ten
years time, how does that impact your family? So I
(20:27):
guess I'd be thinking about why you were trying to
move in the first place, and if you end up
holding for the long term, what is the other side
of that you know of that hold And it.
Speaker 2 (20:37):
Also depends on what are the policies. So let's assume
that this person's near Auckland. It depends on the housing
intensification policies as well. Absolutely, if the government invests heavily
in driving more and we've got the city rail link
and all that sort of stuff and driving more investment
in town, what effect does it have to your predictions
(21:00):
as to we're going to be rezoned out in the
country for a development. I mean, I don't know what
rules are, what models can you base it on?
Speaker 3 (21:07):
Well, you can't really at the moment because all that's
up for discussion. Right with the sort of throwing out
of the MDRS rules and the sort of the plane
one twenty changes, no one really quite knows what's happening
other than they're talking about doing a lot more intensification
around train stations, right, But so you don't know in
five years time what the plans to go up versus
(21:28):
out look like.
Speaker 2 (21:29):
Yeah, okay, Well they've got a second text that came
in from Dorothy. We want to sell to upsize. As
we already had a significant amount of equity on this property.
It wouldn't impact us that much to stay on for
a few more years.
Speaker 3 (21:42):
If you enjoy it, you know, you could put a
minor dwelling on there as well. If you needed more space,
you know, or put a you know those little rooms
that you can buy the incredit second lounge or an
office or you know, playering for the kids or something
something along those lines. You know, that's something you could
add to give yourself a little bit more space.
Speaker 2 (21:59):
I've got a question that's popped up, and I've meant
to ask someone this for a long time. The you know,
you see the mortgage rates, so we can getting back
to the cash rate and what mortgage rates are available,
and we can see that for five years. You know,
you can get anything from four point nine to nine
percent to five point nine five. I don't know why
anyone will go with that one if you can get
four point nine nine somewhere else. But this it's a
(22:23):
bit of a permanent bugbear of mine. You know how
they have the special loan to value ratio. So if
you've got more equity, basically, if you're borrowing less than
eighty percent of the property's value, you get zero point
six percent off, you get a cheap mortgage rate. And
I've got to say, I mean, I'm lucky enough that
I'm you know, we've got more equity that we get
(22:45):
a lower rate. But I sort of think if the
bank's done its due diligence and they are happy to
lend to you, but they just charge it's I don't know,
I just find something a little bit unfair about the
whole your mortgage is going to Because you're poorer and
you've got less equity, we're going to charge you more.
Or is it the banks given your mortgage? Yeah, well
(23:07):
there's I don't know, I just think it sucks.
Speaker 3 (23:09):
Yeah, well yes, and yes the risk is higher. So
if you've got less equity, so for instance, if I.
Speaker 2 (23:20):
Know it's the risk really that much, well, you think
about it.
Speaker 3 (23:23):
You think about when the property price is peaked in
twenty twenty one, right, and it's pretty widely reported. I
think that it will be safe to say that house
prices and Aukland came down in twenty percent in the
year or so following the peak. Yeah, right, So if
you were one of those people that had under twenty
percent of equity, you would be upside down on your mortgage.
(23:44):
So absolutely there's a real risk there. Also, the banks
can only leaned out a certain amount of money to
people with.
Speaker 2 (23:51):
That's a law as well. Yeah, yeah, okay.
Speaker 3 (23:53):
So that's the other side of it.
Speaker 2 (23:55):
Just just that, you know, it just seems tough that
the people who need the most help have to pay
the higher rate. It's a bit like when you've got
kids you have to go in the school holidays for
a and you pay them however premium.
Speaker 3 (24:07):
Get yourself a good mortgage advisor and you might find
that there's some of that is negotiated better than what
is published.
Speaker 2 (24:13):
Really, Okay, there we go, So good stuff. Okay, I
e one hundred and eighty ten eighty. I've got a
technical issue. So I was about to read the text,
and it keep they keep disappearing. But let's see if
I'm grab it while the screen's alive. Here's another text
from Mike borrowed home loan seven figure sum so over
a million bucks, five year fixed three point three six
(24:35):
which ends on October the twenty sixth. So hang on
October twenty six I next year. I next year. I'm
assuming they didn't mean anyway on lent to my property
business to buy commercial property looking to refix another not
five years. I don't think he's he Is he just
telling us what he's doing? Is he actually was asking
(24:56):
for advice there. I don't know.
Speaker 3 (24:57):
Have you read the full question?
Speaker 2 (24:58):
Yeah, that's it. It says borrowed home loan seven figure sum,
five year fixed three point three six percent, which ends
October two ah, which ends October twenty sixth Oh, must
be next year anyway? Looking to refix another I think
he's just telling us he's going to refix for another
five years. Okay, he's probably feeling pretty good about it.
Speaker 3 (25:17):
Well. One of the advantages of fixing for five years
is you know exactly what your mortgage is going to
be over that period of time, right, so it becomes
much much easier to budget.
Speaker 2 (25:26):
Right, Okay. Another text here highly so, just wonder if
it's worth me changing from a rot My god, I
can't even say it. Just wonder if it's worth me
changing from revolving to fix for two or three years.
I've had twenty K still left to pay for years
now as circumstances go up and down, so I haven't
(25:47):
been able to knock it off. Also helping someone else
on and off, which is probably why. However, I noticed
the revolving rates at kiwibank is still quite high. Your
thoughts on what I can do to pay this faster please, Well, I.
Speaker 3 (25:58):
Guess there's a couple of things in there, as there
always is. I think the rates for a revolving credit
are always a bit higher than what they are for
a fact, so you do save a bit of money
by going fixed as as opposed to keeping floating or
a volved credit. However, on twenty thousand dollars over a
couple of years, the actual total dollar value is pretty minimal.
(26:20):
I think the question would be is probably looking at
your lifestyle and going, well, what's actually going to be
the most effective for you? So I get what I'm
hearing is that you're having a really hard time paying
that twenty grand off because of different circumstances. Is that
going to change? And so if you did make it fixed,
would that inhibit you through some of these changing circumstances.
(26:43):
So it's not necessarily an easy one to answer. It's
really looking at your own situation and think, well, what's
actually going to be the most effective for you? And
you know, we've got very limited information on what's going
on in your world.
Speaker 2 (26:56):
Do you think more people should consider splitting their mortgages
across multiple terms? Is it something that a lot of
people don't even think about They just go, oh, just
the end of the question from the bank, how long
do you want to fix for it, I'll do it
for three years. And so they just fixed the whole
lot for three years, rather than going I might fix
for one year twenty percent of it, and I might
fix for three years or four years.
Speaker 3 (27:17):
Look, I think so, And I think this is where
working with a mortgage advisor I'm a big fan of,
because you start having those conversations and getting a little
bit more advice. And what we've seen over the last
four years is we've had interest rates since low is
I think two point two percent it got for one
year post COVID. I mean that was probably extraordiny circumstances,
and then we've gone right up to sort of over seven.
(27:37):
So that's a massive swing, and it has a massive
impact on your monthly payments, particularly if you've got quite
a large mortgage. And so I guess when you can
split your loan over different interest rates, when one comes off,
you're not going to have such a big impact if
rates or increased as if you would have it all
came off at the same time. So absolutely there's some
(27:59):
benefit of doing that.
Speaker 2 (28:00):
Right let's take some more calls. Scott, good afternoon, doing good. Thanks,
what's up?
Speaker 5 (28:08):
I just want to clarify how she said the banks
lend money. They don't lend the money they created out
of thin air? Here and here and lies the problem the.
Speaker 3 (28:21):
Banks do that? And how do they create it out
of thin air.
Speaker 5 (28:24):
When they issue alone?
Speaker 2 (28:27):
Yeah, so.
Speaker 5 (28:30):
What do you mean that money never existed until they
issue that loan? They push a little button. All they
got to do is push a button and bingo, there's
the money in your account.
Speaker 2 (28:44):
Uh, what do you mean? It's okay, I'm not a
banker in terms of the expertise, and that if it's
that easy, here come you can't just push a button
and put the money in your.
Speaker 5 (28:53):
Account, because because I'll go to jail.
Speaker 2 (28:56):
No, okay? Uh? And where did you where'd you get
this idea from? That they just I've heard this before
on talkback by the way, that the bank's just you know,
talking invisible money and they just click buttons and things.
But yeah, where did you get this idea from?
Speaker 5 (29:09):
It's not an idea. That's the way the banking is
called fractional reserve banking, so they don't have to hold
a little bit of money, and then when they decide
to issue alone, they just create that money out of
send there it goes right into my If I take
out a loan to buy a house, that money goes
(29:30):
into my bank to pay for the house. But that
money is created by the banks out of nothing.
Speaker 2 (29:38):
So because they created an electronic form. Okay, so what.
Speaker 3 (29:44):
You're saying is they're kind of borrowing it kind of
like quite kind of like we are when they need
They're not.
Speaker 5 (29:49):
No, no, no, they're not borrowing it, creating it literally
got a printing machine.
Speaker 2 (29:58):
I don't think they literally have a print printing machine,
because you're suddenly sounds about bonkers. I know that there.
He's talking about the fact that they issue with the
loan and electronic form, and some people it's been interpreted
sort of doing it out of thin air and the
sense of having no limits. I would need to dig
into that a bit more to explain that theory, which
(30:19):
I think is kind of it's a kind of financial
conspiracy theory or misunderstood about just the nature of banking.
But we need a banker and editor.
Speaker 3 (30:27):
Yeah, I tend to agree with it.
Speaker 2 (30:30):
Okay, Anyway, I guess the thing is who cares what
they're doing. Actually, it's the thing is that you, I
or anyone else is borrowing money from the bank has
to pay it back. So what are you going to
do about it? I should have asked, asked him what he
does it mean? He's not going to take a loan out?
Speaker 3 (30:46):
Yeah, And I was going to say, what's the ultimate
point in that comment.
Speaker 2 (30:50):
I'll ask chat Gpt what that's all about in the
break and see if it comes yeah, because it's quite
chatty with me these day's high tim anyway. We want
your calls though, in terms of the ocr and what
do you reckon you should do because it's probably getting
towards the bottom. Dave never asked Lisa about her predictions
whether she think that's it it's two point two five?
Will it get cheaper? So we'll dig into that in
(31:12):
a moment after the break. You can give your reckons
as well. On eight hundred and eighty ten eighty, it's
nineteen and a half news talk, said b I did
say it. Ask chat GPT about the earlier call about
how the banks create money out of thin air, and
I've heard it quite a few times and it seems
like a simplification. In fact, chat GPT, I did just say,
I've just had someone calling and say, when banks lend money,
(31:32):
they're just printing money out of thin air? Can you
explain that? And is it? And it says it's a
bit counterintuitive, but the explainer in one sentences it sounds
like conspiracy talk, is actually how the system works. It's
called fractional reserve banking, which is what the caller mentioned.
So when you put money in the bank, you keep
a small chunk in reserve and lend the rest out.
(31:53):
You still see your balance in the account, and the
borrower now has new money to spend. So they yes,
they do create money when they lend, but it's not
unlimited wizardry. They're heavily regulated and the money and can
only lend if someone who can actually pay it back.
And actually the money might be created, but when the
loan is repaid, that money disappears as well, so it's
not money that's created forever it's created and then it
(32:16):
gets paid back. So it's but it is, I mean.
Speaker 3 (32:18):
It is yea, yeah, yeah, yeah, yeah, yeah it is.
And I suppose that's when I was going to be
for about the the when you've got a loan to
value ratio under twenty percent. That comes into that those
those lending rules, those regulatory leading rules where they can
only lean a certain amount over that to people that
have got less than a twenty percent deposit. So that's
all tied into that same.
Speaker 2 (32:39):
That's fascinating, isn't it. And the bank and there's heavy
regulations because the banks are respondible responsible for that money
that they've loaned out.
Speaker 3 (32:45):
So yes, but yeah, just probably the way it was positioned.
Speaker 2 (32:50):
I think it was just the way it was a positioned,
like they're just creating it and all of a sudden,
there's a million dollars that exists for everyone, but when
you pay it back, it disappears. So that it says
money comes into existence when the banks lend, and it
vanishes when the loans are repaid. I feel like there's
a line from Monty Python I want to read out there.
But anyway, let's take some more calls. Ian. Hello, Hello, Ian,
(33:14):
Oh good good?
Speaker 7 (33:15):
Thanks?
Speaker 2 (33:16):
Yep, hello Hello. Well I can't actually tell you what Ian,
I'm just going to put you back to my producer
and we'll get you to come off that speakerphone or
whatever delay you've got going on here? Oh god, another
person somebody just texted saying about the fraction or reserve
banking model. Gosh, we could really go to town on that,
couldn't we, Lisa?
Speaker 3 (33:35):
We could.
Speaker 2 (33:37):
Hi having to having to return to Auckland from the
Bay of Plenty for work. Mortgage free down here in
house value one point twenty five million, But advice, I'm
getting a mortgage. I still have five to seven years
to work and husband is over seventy on late fifties.
Is this possible if we need an extra one hundred
k for an Auckland home? Thanks?
Speaker 5 (33:55):
Uh?
Speaker 3 (33:55):
Yeah, I mean I think the banks will just assess
you from a risk perspective, So they'll just be going,
what's your overall financial position, what's your earning capacity? How
easy is it for you to repay though funds? What's
your exit strategy giving the fact that you've got five
to six years to go, you know, will you'll be
able to pay off that extra hundred k and that
five to six years? If not, you know, are you
planning on selling that house and then downsizing again? So
(34:17):
they want to know what that exit strategy is given
what your age is.
Speaker 2 (34:20):
That is a tricky one. Isn't it if you are
having to relocate to a more expensive market with maybe
you know, the majority of your working life in the
rear vision mirror, isn't it?
Speaker 3 (34:30):
But then you also too, you could potentially rent out
your home in the region and rent in Auckland. You
know you're still in that if you're planning on going back,
so you know that's another option as well. You don't
necessarily have to buy and.
Speaker 2 (34:41):
Some I think that also depends on where in the
bad plenty you are. So for instance, if you're having
to move from Mount Monginui Beach, possibly you're going to
be all right. Yeah, yeah, anyway, let's I think we've
got ian again, get a hello oh much better.
Speaker 4 (34:59):
Yeah, yeah, I'm not just talking about what you're talking about.
I think and down the loan crooker and especially the
low interest rates. I think it would be the time
to focus. But that's what the other scenario with the
banks for leanding. I think in this fundamentally the problem
the first home buyers that are renting, you know, whether
(35:22):
you're on the unemployment benefit or not. An investor can
come into this country by a home and get a
tenant that's on the unemployment benefit in the text is
still going to end up paying for the house for
the foreign investor through the social welfare system, which in
(35:43):
itself is fundamentally go wrong because they'll come into the
twins think deposit taxpayer will basically pay off the house
for them to the unemployment benefit with their tenant house
spots go up.
Speaker 1 (35:58):
Yeah, I'm not quite sure that.
Speaker 4 (36:01):
What wrong?
Speaker 3 (36:04):
You are saying that if someone immigrates to New Zealand
and they are in a financial position to be able
to put a twenty percent deposit down and borrow to
buy that property, and instead of living in it, they
rent it out, and and if and if they rented
out to someone that's working, you know, or they may
rent it out to someone that's on welfare. But then
(36:27):
if they didn't live in that house and they lived
in somewhere else, there would still be a payment for
their welfare for their housing.
Speaker 4 (36:36):
So I'm not sure that's Yeah, for sure, that's right.
But then why should try and investors able to come
in by house? And I think I think New Zealand.
Speaker 2 (36:49):
I think they can't. Really there are limits on which
foreign investors just can't come. It's interesting something really significant
into the country so.
Speaker 3 (36:59):
Yeah, so that's only if they if they immigrate here
and they become a resident.
Speaker 4 (37:05):
Well it even goes for mum and dad investors to invest.
Speaker 3 (37:10):
But if mom and dad, so you're saying that you
don't like that, mum and dad can buy an extra
property and rent it out to help with their financial.
Speaker 4 (37:22):
I think they can rent it out. They've rented out
to someone that's rooking, not to someone that's getting out anyway,
And then.
Speaker 2 (37:31):
That's that's a bit more of a diverse conversation around
social welfare. But where the money comes from is probably
irrelevant investor's point of view.
Speaker 3 (37:38):
Well, and you don't want investors to be discriminating against
who their tenants are because whether they're on welfare or
whether or not on welfare. I think that that's not
ideal either.
Speaker 2 (37:47):
It's a little bit off the topic. But you know,
how we discuss smart money and property and money and
what money makes the world go around is that as
the song in Cabaret goes. But we'll be back in
just a moment, because I still haven't quiz you about
where we think we I see how is going to go,
whether it's going to bottom out or not. But when
we're running out of time with Lisa Dudson eight hundred
eighty ten eight. I don't think I should put the
(38:08):
number out because we're not going to have time for
any more calls, but we will be back in just
a moment. It is nine minutes past five. It's news
Talk said be just a couple of minutes ago with
Lisa Dudson. By the way, if you've listened, if you've
missed any part of the show, you want to go
and check it out, go and look for the Weekend
Collective on iHeartRadio. By the way, I think I gave
the time some bizarre timer. Did I meant to say
(38:29):
it was so many minutes to sex? And somebody I
think somebody suggests I might have said it was something
past five. Anyway, it's six minutes to sex right now, Lisa,
with a couple of minutes to go, it's two point
twenty five the ocr Are we done? Do you reckon?
What's your guess at the Reserve Bank?
Speaker 3 (38:46):
You know, like most of us, we don't really know.
I think it would just really depend on how the
economy recovers in the next few months, and if there
was going to be another cat I think that would
be one more maybe one.
Speaker 2 (39:00):
Little shift yeap, Yeah, because I mean you used that
wonderful tea had quite a few green shoots. But it's
one of those things where it seems that the economists
are talking about that, but the man and woman in
the street is not talking about it yet.
Speaker 3 (39:14):
Yeah, there's that. There was that great show that great
Jack Tam did on Tuesday night. It's on TV one
on demand, You Me and the Economy, and I thought
that was actually a great show and in terms of
some of the things that are starting to happen, and
they had the guy from CEO of Ports of Auckland
and there I think forgot the numbers right. They've they
bought one hundred and fifty thousand cars last year, it's
(39:35):
two hundred thousand on track for two hundred thousand this year.
They're bringing tons of cement into the country, which is
you know, going into construction. I think they've taken on
two hundred and fifty staff in the last six weeks.
So there's a lot of those antidotes that you're hearing.
You know, I'm talking to business people all the time,
and they are starting to see businesses picking up, orders
(39:55):
are picking up so it's only been very recently, but
certainly there seems to be some quite good news coming.
But again, when it starts, it's not like everyone knows that.
Speaker 2 (40:05):
It's nice to hear a little bit of Yes. I
heard quite a few people talking about that, and they
thought it was going to be a gloom fest. But
it was more buoyant than they thought, and a few
people were saying, gosh, well maybe things aren't so bad.
Speaker 3 (40:15):
Yeah, it just takes a little bit of time for
it to filter through.
Speaker 2 (40:18):
Of course, we'll be getting the figures from the Black
Friday sales, which is Black Friday last for about how
many weeks. Goodness May did you do anything for Black Friday?
Speaker 3 (40:25):
No, it's just too much of a zoo out there,
like that's hard, that's life, baby, Lisa, Thank you so much.
Speaker 2 (40:33):
Welcome to go and check out our podcast. By the way,
you might in particular the politics interview with the head
of the GPS just about the Labour's announcement I thought
was quite interesting. Oh, I would say that because it's
on my show, but it was very interesting anyway, Thanks
to my producer, Tire Award Sunday at six as next
we'll look forward to your company next weekend. Thanks for listening,
(40:54):
have a great evening. Now I can come in and.
Speaker 1 (41:06):
We're as on two for more from the Weekend Collective.
Listen live to newth Talks it'd be weekends from three pm,
or follow the podcast on iHeartRadio
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