Matt Ball: Property Investor Federation Manager on Cotality housing data

A changing property market could start shifting landlord trends. 

Fresh March quarter data from property information firm Cotality shows almost nine in ten residential properties are being sold for a profit, but it remains below the peak of more than 99% in late 2021.

Property Investor Federation Manager Matt Ball told Ryan Bridge there's likely to be a rise in corporate style landlords as rules and regulation changes don't favour the mum and dad type investor. 

He says it wont be the causal investor trying to get in the market, it will be ones with purpose who know how to make money out of it.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
So Kiwis are holding onto their homes longer than ever.
New catality data shows the median ownership is now ten years,
matching an all time record. Fewer people are cashing in
big In fact, one in ten selling at a loss.
That's up from one percent that was several years ago,
back in twenty twenty one. Matt Ball Properly Investors Federation
is with us this morning.

Speaker 2 (00:19):
Get a Matt Day, Ryan.

Speaker 1 (00:21):
So it's apartment owners and it's also investors who are
more likely to sell for a loss.

Speaker 2 (00:27):
Right, Yeah, that's right. But that's right across the board,
isn't it. People are holding onto their houses longer and
getting less of a profit or making a loss.

Speaker 1 (00:34):
You're more likely to make a loss if you sell sooner,
aren't you. I think four point two years was the
median length of ownership for a loss making property. So
you hold it longer, you're less likely to sell for
a loss.

Speaker 2 (00:47):
Yeah, that's true, Ryan, But there's two factors in there.
One is that we had that peak house prices about
four or five years ago, so there's a bunch of
people who've got caught out buying at the top of
the market and then obviously having to sell or. If
it's an investor, maybe they're just going to cut their
losses and put that money into something else. The other
thing to think about here is inflation. Over that ten

(01:08):
year period, general CPI was thirty six percent, So even
though making a so called profit, aren't going to be
doing that well.

Speaker 1 (01:17):
And it also doesn't take into account what you might
have done to the place in the meantime.

Speaker 2 (01:20):
Right, No, absolutely, right, I mean this is quite interesting.
I think this is the end of the casual investor era.
You can't just bug some money on a house and
think you're going to make a profit. You've actually got
to work for your money. I think it's the end
of the treat your house like an ATM eraror. You
can't just count from the house price going up and
covering all your debts, the OCE and the bats that
you put on in and whatever else. So that's changed.

(01:43):
The good news is if you're just buying a house
to live in, that's perfectly fine. And if you're a
professional investor, you know you're someone who's buying a rundown
house doing it up to then resell it because you
put some work in, that's fine. And if you're buying
and holding, and you're went into people providing a home
and making a living out of that. That's fine as well.

Speaker 1 (02:03):
Are we going to see more corporate style landlords as
opposed to mum and dad landlords.

Speaker 2 (02:13):
That's an interesting question. That's actually a trend that we've
seen overseas, and some of the changes to the rules
and regulations don't favor the mum and dad investor. I
think you probably will see a bit of a drop
in that. And because it won't be the casual investor,
someone who's just thinking, oh heck, I bet begining here

(02:33):
because everyone else is making money, so I should do,
it will be investors with purpose who want to run
a rental accommodation business, who enjoy providing homes for other
people and know how to make money out of it.
That's the group that will rise.

Speaker 1 (02:48):
Good stuff. Matt Matt Bull Properly Investors Federation.

Speaker 2 (02:52):
For More fam Earlily Edition with Ryan Bridge.

Speaker 1 (02:54):
Listen live to news talks.

Speaker 2 (02:55):
It'd be from five am weekdays, or follow the podcast
on iHeartRadio. H