September 14, 2024 • 41 mins
Forecasts for the property market have been varied recently, but property commentator Ashley Church says house prices are still very much flat.
Ashley joins Tim Beveridge on The Weekend Collective to discuss more.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks,
a bimetal.
Speaker 2 (00:51):
Sing a new song, Yes and very good afternt you
have just joined us. This is the Weekend Collective. I'm
Tim Beveridge. I let that music roll from it because
that's just having a conversation with my producer about how
much I love Aba. I'm going through such an Amber
phase at the moment. Anyway, there we go as I
(01:14):
in fact, I think I said to a colleague, because
I'm not a Taylor Swift fan, he'll probably work that
out anyway. And I said to one of my colleagues,
who is a Taylor Swift fan, send us the best
Taylor Swift song you've got so I can appreciate it.
And I was like, no, it's not for me. But
if every song Taylor Swift was like an Abba song,
I'd be like, She's amazing. Anyway, that has nothing whatsoever
(01:36):
to do with this hour, because this is the one
roof radio show. If you've missed any of the previous
any hour of our show, you can go and check
out our podcast. Look for the Weekend Collective on iHeartRadio.
And a great fun panel there before that with Bridget
Morton and Mark Kreisel, and now we're joined by Well,
he's an old friend of the show, really not so old,
(01:57):
but friend of the show. Been going with us since
I think when we began on the Weekend Collective and
his name is Ashley Church. Could ashually hang gain you.
Speaker 3 (02:05):
Know, Tim, I'm also an Ember fan, I have to say.
But I was just I was listening to that because
normally I try to read the secret meaning into the
music that you produce, the plays. But I'm not entirely
sure what I was up to with Chickachita.
Speaker 2 (02:17):
No, well she does. She's a big fan of Chickatita
and she loves the instrumental bit at the end for
some reason. But I can't remember how the instrumental goes.
Speaker 3 (02:28):
But yeah, very Spanish if I remember rightly.
Speaker 2 (02:31):
Yeah. I mean it's interesting that they. I mean, when
you think about their their their Eurovision song quest When
was a song about well invoking the memories of Waterloo.
Speaker 3 (02:42):
Even though they were they were amazing. There's a there's
a famous shot of them. They were on stage with
you two I think in the early two thousands, and
there's a great shot of Bono going, We're not worthy
we're not worthy and bowing down and he meant it.
Speaker 2 (02:55):
Yeah, a songwriters, absolutely and I had as a as
a probably a seven year old, a huge crush on Agneta,
which has never waned anyway, as probably did the world.
I think anyway, how are you?
Speaker 3 (03:08):
I'm good, I'm good, mate, very good.
Speaker 2 (03:09):
Hey, that question I've written down and I don't sort
of mean it in a mischievous fashion. But there are
a few articles going at the moment Tony Alexander's talking
about buyers are back, but don't expect a frenzy. There
are signs of the signs of the slowdown on interest.
Stock Curta and Zeta are clearer and particularly in Auckland,
(03:29):
and auction room activity are still crawling along winter levels
with no sign of a spring bounce. Those are the headlines.
But my vibe I get because when we were in
the doldrums and predictions are still don't worry about the
end of the year. Property price is going to be
up to ten percent. So I've got this question, will
(03:50):
the real estate market ever be exciting again?
Speaker 3 (03:54):
So short answer, well, long and short answer is absolutely
yes and interesting you should quote those articles. So I
rate Tony so I put tony aside from what I'm
about to say.
Speaker 2 (04:05):
Oh here we go, em brace yourself.
Speaker 3 (04:09):
Well, seriously, the rest of them. I mean, it's hard
not to have to stayin for some of this stuff
because a lot of it comes from you know, this
is over generalizing a little bit, but a lot of
it comes from varsity students that have been in the
you know, the economics department of these banks and institutions
for about five minutes with no experience of the market,
pontificating on what they think may or may not happen. Look,
the reality is that the market's to the market. It
(04:29):
has done what it's done for forty odd years longer actually,
and putting aside the fact this downturn was a bit
unusual because it was artificial, by which I mean it
was created by the Reserve Bank. It wasn't created by
market conditions per se. It will recover as any other
market does, and we will see a return to what
(04:50):
traditionally happens. The question is when.
Speaker 2 (04:53):
I think, probably behind my question on that as well, though,
is I guess the news or the you know, there
was a time when it seemed that the only people
who got it wrong by not being in the market
were obviously those weren't in the market, and everyone else,
regardless of what analysis they had done. If you got
into property at a certain time, you know your rent
(05:16):
was paying for your mortgage, it was a no brainer.
The capital gains were colossal and property prices were doubling
every eight years. That's not the case right now. People
are having to heavily. I think the gap between yield
and what you're paying to own your property is about
four percent or something, So the gaps, you know, you're
having to subsidize it heavily. The market slow. Interest rates
(05:39):
are not coming down that quickly. The demand doesn't seem
to be in there. It seems that it seems like
it's more a game for experts now, whereas there was
a time when it felt like the game was there
for any more on who could make the decision.
Speaker 3 (05:53):
But that was sorry and there was many of us.
Speaker 2 (05:58):
But what I mean by that you didn't have to
really do much science about it all, or it was
just like, yeah, I got it, it's the market like
a buy house, and I bought as many as I
could and I made a fortune. Whereas it feels like
now you have to be a bit more those days
feel like they're gone. Where it's just I disagree.
Speaker 3 (06:16):
I disagree, and I think I think what you look at,
what you're doing is you're judging it at the by
the moment in time, so and by the moment of
time in leave the last two or three years obviously
since twenty twenty one, but if you go back to
two thousand and seven to twenty ten, same thing, after
the GFC, if you go back to nineteen ninety eight,
nineteen ninety nine, same things. So there is always a
period in the market where where things are flat. And
(06:38):
it's interesting because that's the period of time that all
these economic commentators come out and say, you know, the
days of high house prices and Latin house prices and
increases and the double digits are gone, and they're just not.
They're just not. As I said before, the only thing
stopping us being in that that cycle that you're talking
about right now is that is the fact that the
decline in the interest rates needs to be greater to
(07:00):
restore confidence to the market. Once that happens, and to
be fair, it will be tentative, so it won't take
off like a rocket ship straight away, but it will
take off like a rocket ship, and and at some
stage soon we'll be having the same conversation about how
terrible it is at house prices are going up so
fast and how difficult it is the house right while
day all that stuff it'll all happen again, and you
(07:23):
and I will be having this conversation and we won't
be talking about when they're going to go up, We'll
be talking about when it's going to end hm.
Speaker 2 (07:30):
Because okay, yeah, yeah, yeah, okay, Well I want to
throw this out to the audience as well. Do you
think the heyday and the heyday of the property market
when everyone is making more money they can dream of?
Do you think those days are going to be upon
us anytime soon? Or do you think it's been a
longer game? And what's it going to take? Do you do?
You go along with Ashley actually that you know eventually
we'll be having the opposite conversation because at the moment
(07:53):
the news is a bit slugg But by the way,
just probably take calls on this ashlely that the article
and interest stock curtain and z but basically just observing
that auctionary activity is still crawling and no sign of
a spring bouts that doesn't. You were quite harsh on
them comments on that, and the guy who wrote it,
he does look like he's just come out of university.
Speaker 3 (08:16):
So by dig that comment, I guess what I'm saying
is that and this particular wave of them fits into
what I'm about to say is a lot of this
stuff relates to activity that happened prior to the Governor
of the Reserve Bank dropping the mortgage interest rates in
indicating that they will come down and come down further.
So a lot of this stuff is a historic in
the sense that if you're having the same conversation in
(08:37):
three months time, you may well have a different picture
because confidence will the confidence will be starting to be
restored to the market. So, you know, with all due respect,
and I didn't have to look to see who wrote
that particular article, but my comment stands it's this. You know,
easy to write a headline, sit down at your computer
instead of write something that's going to be populous without
really thinking about the consequences of what you're saying.
Speaker 2 (08:57):
Although to balance that, I could refer you to an
article I heard somewhere else where people are talking about, oh,
there's one case of some auction going well, and all
of a sudden the market's on fire. You know, there's
so much hyperbole with the reporting and the property market.
That's always been sort of my beef that it would
be either it's like it's dreadful or it's on fire.
Speaker 3 (09:20):
And no one between hey, and by the way, auctions
are a bit of an unfortunate way to judge the
market because auctions are at their best when the market
is on fire. The whole point of an auction is
to stimulate competition and to get as many people that
prepared to spend as much as possible, and that doesn't
happen in a flat market. And we're still in a
flat market, So you shouldn't. You know, anybody who's using
auctions as a barometer of how the market's doing doesn't
(09:41):
understand how the market works.
Speaker 2 (09:42):
So we want your cause on this eight hundred and
eighty ten to eighty. At the moment, the headlines are
suggesting the markets a bit flat. There have been other
questions around the amount of people that people having to
subsidize their investment properties. Actually, just before we go into
taking the calls, there of course is and does this
play a partner Ashley the legislative uncertainty of a change
(10:04):
of government. So at the moment we've got a government
that is more more friendly to sort of normal conditions,
normal deductibility and all that sort of stuff, But in
waiting in the wings at some stage we have a
government that may undo the whole thing again. And they've
been talked about capital gains tax, which you get onto.
But do you think that there's the legislative uncertainty about
(10:25):
a lack of a bipartisan stead of approach is a
big spanner in the works of yea a market operating
as a market?
Speaker 3 (10:36):
Yeah, so years the answers year, and more so now
than at any stage over the last thirty years, because
prior to twenty seventeen there was a reasonable degree of
complementarity in terms of the policies around this stuff between
the two parties until the Labor Party took a deep
dive into the left from twenty seventeen onward. The flip
side of that, well, not the flip side, but I
(10:58):
guess the confidence in that is it'll be at least
five years and probably nine before we see a Labor
Party as the League Party and a government again. So
I'm not too concerned about that.
Speaker 2 (11:09):
Does that mean that your real estate plans have to
be planned in sort of six to nine year incrementations?
Speaker 3 (11:16):
Well here, but it was about to add to that
that if you look at property investment, so I'm keep
in mind I'm talking about the Labor Party and not
the Reserve Bank. If you look at properly investment over
the last twenty odd years, property investors have done broadly
as well under labor governments as they have international government.
So overall it probably doesn't matter.
Speaker 2 (11:30):
I absolutely probably went up through the roof. I think
I think it was doing pretty well under Helen, wasn't it.
Speaker 3 (11:35):
It was it was doing very To be fair to Helen,
though Helen was running with Michael Cullen as a finance
minister a pretty orthodox econom policy, so you know, there
wasn't a heck of a lot of difference between them
and what National would have been doing.
Speaker 2 (11:45):
Right, Let's take some calls. I eight, one hundred and eighty,
ten and eighty are the days of you know, will
the market ever be exciting again? That's my and that's
my crude way of asking the question. I don't mean
crude as an uer, I just mean it as a
very simplistic way of asking the question. But you know
what I mean? When will the return of bars to
the market see a change in prices? Eight hundred and
eighty and eighty. Let's let's get into it. Peter, good morning, sorry,
(12:09):
good afternoon?
Speaker 4 (12:12):
Are you doing?
Speaker 2 (12:14):
I just have different shifts I work and sometimes my
greeting gets blurred.
Speaker 4 (12:19):
Are you going to be Are you going to be
doing an afternoon shift?
Speaker 2 (12:23):
Who knows? Probably not. I'm doing this afternoon shift, That's
all it counts. Yeah.
Speaker 4 (12:29):
Yeah, I've just brought a commercial property and theirs have
a company for it, Developers Clearance, So hopefully I've done all? Right?
Is there any advanced is buying a rental property? Yeah?
Or people eleven buy a companies rather than than yourself.
Speaker 3 (12:55):
Oh so, Peter, you're asking me for legal advice basically,
which I'm loathed to get.
Speaker 2 (13:00):
Okay, so no specific advice, but what can you tell
us about companies versus individuals own property? And Ashley? How's that?
Speaker 5 (13:07):
So?
Speaker 3 (13:07):
What a concern general terms? And this isn't going to
help you very much, sadly, mate. Is that people try
all sorts of different structures to purchase residential and effet
commercial property, and they primarily do that for tax reasons.
So some people buy them onto trust, some people buy
them in their own names, some people buy them as partnerships,
some people buy them through companies. There are advantages and
disadvantages to each, but those advantages and disadvantages are very
(13:30):
specific to the people, So there isn't just one size
fits all, or I could say I do this, it's
the best option, because what applies for you may not
apply for somebody else who's in a different set of circumstances.
So the best advice I can give you is go
and talk to a tax expert on that stuff and
just make sure that what you're doing is going to
be best and most efficient for you.
Speaker 4 (13:48):
Okay, And on the organ property market, I think it's
just bubbling along the bottom still, but I don't think
it's going to fall much further, if any, and be
maybe one on one percent for the rest of the year.
Speaker 3 (14:04):
If I broadly agree, I mean, there are two things
that need to happen. One of those is that mortgagentist
rates need to come down a little bit more, and
I think we can have some confidence that's going to
happen over the next few months. And the other one,
which is really a subset of the first one, because
it'll be a result of it, is we need to
see some confidence return to the market so that people
(14:25):
actually start getting into it again. So when those two
things happen, and you'd be talking six to seven to
eight months to sort of start seeing the effects of
those roll through Aukland and I did most parts of
the country will will start to take off again.
Speaker 4 (14:39):
Probably just a commercial one.
Speaker 2 (14:41):
Yeah, good on you, thanks, Peter. Yeah, I mean, intuitively, obviously,
you just talk to an account about stuff, wouldn't you actually?
But to me, if you're buying it's an interesting one,
isn't it because the capital gains? I guess. So long
as you as long as you're passing the test as
a company, that you are buying it for the rental
return and not for the capital gain, then it's just
like anyone, I guess. But as I say, we're not
(15:03):
going to make any legal comment, are we, because Chicken? Sorry?
Imagine if I was talking to you in this manner
and it was your first appearance on the show, you'd
be like, what the hell is pretty?
Speaker 3 (15:17):
I'm never coming back. Let's let's it's not my first appearance.
Speaker 2 (15:23):
You know it's not your first rodeo or rodeo whatever.
Pronounce that right, Let's get on to some more call
showy pedro good.
Speaker 6 (15:33):
Right now from South Africa. How you guys, We're.
Speaker 2 (15:37):
Good, Thank you very much from South Africa. I'll have
my accent needs to shift.
Speaker 7 (15:42):
Yeah, yeah, there we go.
Speaker 6 (15:44):
Good enough. Job. Yeah, I mean, just just I mean,
just just a comment to my son as as sort
of a financial professional. The only comments I like really
about this sort of classes and what expected to be
the term. The gap between wages and house prices has
(16:07):
grown tremendously. To say, the last forty years, prices have
been doing what they do. Yes, but for the most
part one has to make at half past growth versus
wage growth, and those numbers have diverged astonomically, and at
the end of the day, at the end of the day,
people can afford what they can afford. And the whole
(16:29):
rocketship comming I think is it's difficult to see how
it is sustainable unless you are get into a position
where wages can come even close to keeping up with
double digit property growth. So that's really living.
Speaker 2 (16:47):
It's a very reasonable call there, pedro.
Speaker 3 (16:50):
Let's actually I actually talk about this very topic that
you're talking about it quite a lot. So firstly, let
me say you're quite right. So house prices, Falkland house prices,
for example, it used to cost four times the average
household encounterment to two thousand and three, two thousand, four
times the average household come. It's come down a little
bit as a result of what's happened to the market
over the last of a while, but it's still sitting
(17:11):
up at around nine times average. So you're right, it's
increased exponentially. The thing you were not taking into account
on that, and I talked about this a lot. In fact,
I've talked on it in the show a few times
is the impact of the cost of interest. And I'll
give you an example of what I mean by that.
So in nineteen eighty seven, and I did some numbers
on this a few years ago, and they'll still hold
up relatively closely. In nineteen eighty seven, because interest rates
(17:33):
were so high. If you took the average income, household income,
and the average household at the average cost of a
home in nineteen eighty seven at the and you factored
in the cost of interest, the average cost of interest
mortgage interest. At that stage, it was costing just over
fifty two percent of household income to buy a house.
Correct by two thousand and seventeen or twenty and sixteen,
(17:57):
because interest rates had come down so dramatically since the eighties,
that had actually dropped to thirty seven percent, even though
and this is the key, even though house prices have
increased so dramatically. So the point I'm making to you,
as you're right, it is going to slow down over
time because you can't keep having house prices getting higher
and higher and people still being able to afford them.
But once you factor interest rates in as well, the
(18:20):
equation is not quite so simple as it looks on
the surface. And as I say, thirty seven percent of
house gold and come in twenty seventeen, even though house
prices were so much higher. The point I would make,
and I did some work on this a couple of
years back, is that when I analyzed what had happened
to house price growth since two since two thous and
sorry nineteen eighty, over that forty year period, it used
(18:40):
to take about ten years for house prices to double.
That had slowed by twenty twenty to about twelve years
and the opinion I took at the time no reason
to change it is that that rate of doubling will
continue to slow, but house prices will stern double. So
I stand by my rocket ship cop.
Speaker 6 (18:57):
Yeah, yeah, and I mean maybe. And here's a question
a follow up VISI with regards to the the metric
of affordability, right, you use numbers of fifty two and thirty.
I mean the long run average as a percentage of
someone's disposable income. It's been what I mean, correct me
if I'm wrong with between brilliant and five percent. Depends
(19:18):
on it depends in the country.
Speaker 3 (19:21):
Yeah, yeah, there areas with.
Speaker 6 (19:23):
Long run averages of around thirty's that's close to fifty year.
Speaker 2 (19:29):
Yeah, Pedro, I want to know where where are you
at with what you want to do in the market.
Speaker 6 (19:34):
Yeah, I mean so I'm in the market.
Speaker 2 (19:38):
Sorry, you've recently what you've recently just bought investment or.
Speaker 5 (19:41):
Personally, I wouldn't buy any investment property. Yeah, we'll with
the alternatives out there, you know, the return on investment
for properties just not complaining enough for me, given all
the alternatives that are out there, with with with equity marketers.
But again, and I do appreciate. You know, that's equity
(20:02):
markets onto everyone. But that's being said, did.
Speaker 2 (20:05):
You buy on video shares or something five years ago?
Speaker 3 (20:09):
I wish I did social media company.
Speaker 6 (20:13):
I'm going through them all.
Speaker 8 (20:14):
I'm going through then more and yeah, I mean but
again I think pointing earlier about it being a niche
for professional I think that is getting more and more
of us, especially in the rental market, Like you've got
to really know what you're doing because the margin for
era is yeah, yeah.
Speaker 2 (20:36):
No, I got on you.
Speaker 5 (20:37):
Look.
Speaker 2 (20:37):
Actually, I do think that there is something in that
that it does feel like the degree of that there ago,
that's the expression I'm looking for. Ashley. Hey, by the way,
thanks for your cor pedro. It feels like the degree
of difficulty is different. There's a way of putting it,
whereas maybe there's a time when I would have considered
that you just just go and buy property, don't worry
(20:58):
about what it is, where it is.
Speaker 3 (21:00):
Just so I've been doing this, I think with you guys,
back when it was you and and in fact it
was the other term. That's how far back we go. Oh,
I remember at some point when you first started, we
were having a very similar conversation that I think at
that stage you were saying to me, it's all getting
too hard. House prices thinking to increase, And I reassured
you at the time, and they did.
Speaker 2 (21:19):
But I knew absolutely nothing back then.
Speaker 9 (21:22):
But I'm giving you the same I'm giving you the
same reassurance. Again, nothing's changed in the fundamentals of the market.
And I understand why people do it, and I understand
where it comes from, but it's.
Speaker 2 (21:34):
And I can also say that you that I think
the conversations over the years, we have frequently had conversations
where we look back at the times when interest rates
for eighteen percent, and you're consistently, to be fair to you,
I'm sort of I'm doing you not a favor, but
I'm just supporting in a way what you've just said
(21:54):
that You've said that in many respects, property has always
been challenging. It's just that there were when the property
market when absolutely nuts. I guess that's when it's just
sort of, well, I'll just buy something you and you
can't fail.
Speaker 3 (22:07):
But hey, look at them. Never say never. But I
you know, I suspect that what we went through in
twenty twenty is never going to happen again. Certainly not
in our lifetime, hey, because it was required thing to
do what it did and that's not going to happen.
Speaker 2 (22:18):
I've got lots of questions for you. We're going to
come out of the break though, because we've just chatted
quite happily and where we'll be back in a second.
It's and you can give us a call. Will the
exciting well the market be exciting again when it comes
to real estate or is it going to be a
bit more degree of difficulty? Experts only? What do you reckon?
And by the way, Ashley loves it when you disagree
(22:39):
with them, So give us a call. I eight one
hundred and eighty ten eighty text nine Back in.
Speaker 1 (22:44):
A tack keeping your eye on the property market. The
One Roof Radio Show with Conroy Removals New Zealand's favor remover.
Speaker 3 (22:52):
They know what moves you used talks it.
Speaker 2 (22:54):
Be as Welcome back to the Weekend Collective. I'm Tim Beverage.
(23:18):
My guest is Ashley Church. He's putting a property commentator
well beyond this show as well. But ever since we
started on the Weekend Collective and we're talking about when
will the exciting times return to the market depends what
exciting is actually, of course, actually, because with properties being affordable,
if you are looking to buy a house and you've
just bought one, that's very exciting, isn't.
Speaker 3 (23:37):
It interesting definition, Absolutely, And anybody who's bought a house
over the last couple of years has probably done pretty
well relative to where the market's going to be, so
they'll be rubbing their hands together in a few years time. Yeah.
Speaker 2 (23:51):
Actually, a couple of texts before you go to that,
Tim Ashley Church is my very favorite of all your guests. Wow,
that's a big one, and Christy says, no, it's from
Chrissy who said this came about when he read Adrian
Or's pedigree on your show. So she loves you because
you're Actually I do want to ask you about that
because of the you know, the market has been through.
(24:12):
It an extraordinary sort of situation where we had incredibly
cheap money pump the values up because people thought that
property was the no brainer that it was. And a
lot of those people are probably in deep trouble now
because they've now got very expensive mortgages or about to
bounce off onto a different mortgage rate. What what does it?
(24:33):
What does a normal functioning market rely on when it
comes to mortgages and interest rates because the reserve Bank's
always going to be there. But is there what's normal?
Speaker 3 (24:44):
So there's no such thing as a completely unregulated market
by to the fact that you have the reserve bank there,
so it's always going to have a handbrake on interest
rates or the opposite, depending on what it wants to
do with inflation.
Speaker 2 (24:57):
But a gym.
Speaker 3 (24:57):
But putting that aside, a normally functioning market as a
market where the government basically keeps out of of the
day to day operation of the market, where buyer and
sell can agree on prices and both come out of
that situation in most cases believing that there's been a
fair deal done and that there's a reasonable orderly incremental
(25:21):
increase in house prices over a period of time. And
that third one is the one that's controversial because there's
a lot of people who say house price growth is bad.
We haven't got time to deal with it today. But
I do quite a strong dissertation on why house price
growth is actually one of the most significant drivers of
the economy, and that house price growth has been extraordinarily
(25:42):
good for this country over the last forty or fifty years,
and long Mack continue.
Speaker 2 (25:47):
What about what about the argument, well, we're going to
call it to go to and just a tech but
what about the argument that there's been so much emphasis
on property being the only way to make serious money
in New Zealand that it's sort of taking money away
from investing in other productive sides of the economy, et cetera,
et cetera.
Speaker 3 (26:01):
It's true, there's some truth in that, and there's this
concept of what they call capital markets, which means that
New Zealand doesn't have even what Australia's got in respect
of the depth of their share market and some of
the forms of investment, which is why Keywys have been
such avid investors in property, because it's been one of
the few things that they could invest in. But that
shouldn't take away from what it's actually done to our
economy and the way that it's actually fueled growth and
(26:22):
fueled wealth in a way that's enabled people to look
after themselves and their kids over the last forty or
fifty years, which has been, as I say, extraordinarily beneficial
and flies in the face of all the nonsense about
you know how house price growth is such a bad thing.
And just to finish that before we go to the call.
My caveat to that would be if the effect of
that had been that we've seen home ownership drop off
(26:44):
over the last forty years. So, in other words, if
the cost of having our high house price growth economy
was that fewer people were able to own their own homes,
I'd have a different view. But that hasn't been the case.
The rate of home ownership in this country has been
remarkably consistent for about one hundred years.
Speaker 2 (26:58):
Okay, in fact, I want to dig into that a
bit more. But guess what. Let's go to a call,
shall we, Nevill High Nevill Hi?
Speaker 7 (27:05):
Yes, thanks, I just want to make a question. I
went on to Quotable Value site yesterday to have a
look at the valuation of old property I had. I
had four bedrooms, two toilets and three bathrooms. Now I
only have three bedrooms and a toilet and a bathroom
and one Now I'm just wondering whether that impacts on
(27:26):
the valuation of my property and when it works out
for for rates and everything like that.
Speaker 3 (27:33):
Oh no, the last bit's interesting. The answer in terms
of rates, No, it doesn't because the rating value or
the the Yeah, the raidable value is is a broad
brush to determine sort of average values across a suburban
area in a city for the sole purpose of determining
what you should be paying in rates. So I think, yeah,
(27:55):
so I thought when I thought you were going to
ask me, just finished the answer. What I thought you
were going to ask me was, doesn't compact on the
value of the property of resale purposes, And to which
my answer was going to be, it is about six
or si even of these various different sites that purport
to be able to tell you that the value of
your property, and if you went to all seven of
them and took an average across them, you'd find that
they could be two or three hundred thousand dollars apart
(28:16):
in some parts of the country. So I treat them
with a little bit of a grain of salt. They're
an interesting exercise, and you know, seeing what your house
might or might not be worth, but as a guide
to its real value, wouldn't take too much notice of them.
Speaker 7 (28:27):
I'm not looking at from that perspective. I'm just looking
at from you know that quoting four bedrooms and two bathrooms,
two toilets. I just found that there's no plans, So.
Speaker 2 (28:43):
What does it say, What does it say yours is
versus what the reality is? Again, just tell us.
Speaker 7 (28:48):
It's four bedrooms, two bathrooms, two toilets and we've only
got three bedrooms and a bathroom toilet.
Speaker 2 (28:56):
So four two and two versus three one and one?
Because actually, can I play Devil's advocate or just disagree
with you? So I live in a block of three
units and my property is described as having four bedrooms
and you know, sort of two toilets, et cetera. And
it is valued at it's valued about a couple hundred
(29:18):
thousand more than the unit next to me, which has
got right three. So I was thinking that they it
looks like they do take into account the number of
bedrooms because the value I challenge, yes, right carry that's
credible values.
Speaker 7 (29:32):
It's a credible value site. So they pass that information
onto the council, and the council don't have any plans
in my house. They have plans of in the side
of me and across the road, but not my property
I bought in nineteen thirty. But you know, it's it
just seems a bit odd, I am you saying it
doesn't unpack.
Speaker 3 (29:54):
I am and despite what Tim just said, because I
understand what he's the point he's making that his house
is worth more than the neighboring. So I suspect if
you looked at the actual those two units, there's probably
something else distinguished between the two.
Speaker 2 (30:06):
I love there, and it's sensational it.
Speaker 3 (30:10):
George Washington slept here, but my point. But my point
remains that for rating purposes, it's not as precise an
instrument as it would be for other purposes. For example,
if you were trying to sit cure funds from a
bank where they're actually quite concerned to make sure that's
pretty accurate, counsels Jazz looking for a gym, so I'd
be more I'd be more concerned though about the description
(30:32):
of the property, the legal description, because if you ever
come to sell and the lawyers decide to do but
due diligence to work out what title they're actually changing,
there's a difference between what the council said you've gotten
what you've got, So that would worry me. You might
want to get that sort.
Speaker 7 (30:44):
Of Well, council doesn't say I've got anything because on
their site, so it's just a whatever you would like
to call it.
Speaker 3 (30:54):
I have to say. Part of the reason is, I mean,
you're you're in the you're under the Hut council there,
aren't you.
Speaker 7 (30:59):
Yeah? Absolutely, yea.
Speaker 3 (31:00):
If it was Wellington, I wouldn't be surprised because it's
muppets basically, but I'm not die what's going on with
that city. But yeah, i'd be having a check to
these two things line up.
Speaker 7 (31:13):
Yeah, thanks, Yeah, okay, thank you. Thanks.
Speaker 2 (31:18):
See, just before we go to the break, I just
locked up my neighbor's valuation and there is a and mine.
There is a twenty five percent discrepancy between the value
of my unity and the value and you know, we're
talking several hundred thousand dollars here. So we've got four
bedrooms and we've it's suddenly it jumped up because I
(31:41):
remember going again, I probably got told off by you
for haggling my rates down because I said, hey, it's
not you know, not that flash, and they popped it down.
But they've popped it back up and they're all valued
at first of June twenty twenty one, and they're just
so yeah, mine's yeah, the neighbor next to me, So.
Speaker 3 (31:57):
It doesn't start from a zero base. When they do
those aradible valuations, which are every three years, they start
using the previous one as a base. So I can
only assume, I mean, no, no, that'said if you never
look at it. But I can only assume that there's
been a creeping increase in your value over and above
your neighbors over over a progressive number of these things.
Speaker 2 (32:12):
And then, because I mean, we're the end unit, which
is a slight, but we've all got exactly the same,
exactly the same everything. Maybe I should object to my rates.
Should I object?
Speaker 3 (32:24):
I wouldn't, but up to you.
Speaker 2 (32:26):
Well, it just means I'm paying. It's for a few
hundred bucks a year in rates compared to my neighbors,
and I don't like that. But fair enough, you know.
I'll talk to you about this off air sometime anyway,
hey by, so we can taking more calls on not
on that particular is shoe. We've got lots of text
to get to, which we'll do straight after this is
news talks. He'd be it's eighteen minutes to five.
Speaker 3 (32:46):
I've ever lie in the house, is blone?
Speaker 2 (32:49):
I keep loone. I'm clapping, but there's no clap bone
house looks like where the armish there's really no part
to pay the power welcome TEXI and we can collect them.
I wonder if radio show I think I produced a
Tira has googled songs that have the word house in it,
and that's whatever that was. I don't know what that was.
(33:10):
It wasn't quite abba, though, was it.
Speaker 3 (33:13):
He's let yourself down. I just realized why. I was
a bit confused because I thought you lived on a
luxury yacht and I was trying to work out with it.
Speaker 2 (33:22):
That's the one. Yeah, it's funny. I've just done a
bit of digging into this and they've got the land
value way down on my on the on the neighbors
versus mine, whereas we all own the same land. So anyway, interesting. Anyway, Hey,
we've got some texts to get through, so let's do it. Hi, Tom.
I know this is not really the question for today.
(33:42):
And look, I'll give our disclaimer that we don't give
specific financial or advice. But this person says, as a
homeowner of a two million dollar property, we're thinking of
downsizing and being mortgage free, and about a one point
two million dollar house. Silly idea. Or okay, in the
present market. I guess what are your reflections.
Speaker 3 (33:59):
Depends on how old you are and at what point
you're at in your terms of your career, in your life.
If you're over sixty, probably not a bad idea if
that was always your plan. If you're forty five, maybe not.
So it really comes down to you overall.
Speaker 2 (34:10):
Okay, let's just assume that they're looking to free up
some cash. I think the question is really just about
the present market. Are you better to wait until because
I mean, everything moves up, doesn't it.
Speaker 3 (34:23):
But time is your friend with the property market. So
if there's no reason to sell right now, and there's
no pressing financial burden in terms of owning what you've got,
you hang onto it for as long as you can.
Speaker 2 (34:32):
So if you've got a more valuable asset, hang onto
that for as long as you can, because it will
differentiate itself by a greater dollar amount from the cheap asset. Correct. Yep,
Oh yeah, I've learned something from you over all these years.
Here we go.
Speaker 3 (34:46):
You only take the bits you like for.
Speaker 2 (34:52):
High team. Does Actuley map rateable values along the same
lines as property prices? Where does he see RVs? In
ten years. I guess that's from Gary. Yeah, where does
he see?
Speaker 10 (35:03):
No?
Speaker 3 (35:04):
I don't. No, I don't, And so are these are?
That's ratible values which are almost exclusively there might be
a couple of exceptions to this, but almost exclusively done
under contract by quotable value. On behalf of councils around
the country are and quotable value. I hate it when
I say this, but it's true. Are a less precise
instrumental because their purpose is less precise. It's just about
making sure that people are they're there share So so no,
(35:27):
I don't track them against other valuations, and I don't
see them as a particularly accurate barometer of valuations.
Speaker 2 (35:32):
Of course, we assume that you meant radable values rather
than recreational vehicle, which would be completely different conversations. In fact,
then you go sell you two million dollar property in
via recreational vehicle. There you go, they'll free up some
capital anyway, High Jen, that's not specific specific financial advice,
by the way, or as me being silly, High Jens,
what would your thoughts be about buying our rental property
(35:53):
in a provincial town? The yield would be reasonable in
a four years time. The new riding or mean it
will just take one out of Wellington. Thanks in advance
as Annie, which I can get ahead of you. Ashlely
in saying, well, she's making the argument to do it,
isn't she?
Speaker 3 (36:05):
Well, it comes down to what you're looking for, and
she's absolutely right. The age old argument with property investment
is between yield and capital growth. Yield being you're making
more on the property than it's costing you to own it,
and that's getting harder to do, to be honest. Capital
growth being that you're buy the property because it's going
to be worth more than ten years time and you're
wanting to maximize that. Often that choice comes down to affordability,
(36:26):
and my argument would generally be if you can afford
to pay more, buy more.
Speaker 2 (36:30):
I think what she's doing is arguing for to do it,
isn't she, Because she's saying the yield's reasonable, and then
she's saying in four years time, the new writing or
mean or just take one out of Wellington. In other words,
she's saying the yield is reasonable and I'm anticipating capital
growth in four years.
Speaker 3 (36:42):
Yeah. Well, I'm just going to say she's obviously talking
either the libin or O techy probably given the for
you the case, those values are going to go up
once she's right, once that motor axtension goes through, so
they will go up and value after that.
Speaker 2 (36:56):
Okay, Karl asks Hi. Actually, with the recent government retrenchment,
it feels like Wellington property has been particularly impacted. Do
you think this could result in good opportunities over the
next six months as well? No specific financial advice, Carl,
but Ashley go.
Speaker 3 (37:10):
Well, I'm not going to give specific advice the only
and I'm sorry I haven't got these figures in front
of it. I read something recently, in fact, it came
from David Farrer indicating that the change in overall headcount
and Wellington since the new government had come in, when
you looked at it overall, it was actually very small.
So although there's a lot of noise being made about
the fact that supposedly the new government's been slashing head count,
(37:33):
the total numbers actually aren't that great. So I think
a lot of that hyperbly by the media. Having said that,
is it going to make a difference to the market, No,
probably not, because in the biggest scheme of things, well,
and you'll go with the rest of the country just
as it always does. So I wouldn't be I wouldn't
be hanging my hat and on that as a source
of of a better purchase than you might otherwise have made.
Speaker 2 (37:52):
Okay, right, it's ten to five back in a moment
properly of the week as.
Speaker 10 (37:55):
Next and we're back on the abba.
Speaker 2 (38:17):
So we're all happy, aren't we, Ashley. This is the
week in collective one roof radio show. Now it is
six and a bit minutes.
Speaker 1 (38:24):
To five, the one roof property of the week on
the weekend Collective.
Speaker 2 (38:31):
Yeah a fact. That's the reason we played take a
chance because this is or take a chance should I say?
Because you can take a chance on this house Chance
fifty seven This is the property of the week, Go
and check it out of the one roof of dot
courted in zaid sight. It is fifty seven hydro road
Cambridge WIPA and it's well the thing that captured me
by it. It's got it looks like an Ashveldt tennis
(38:54):
court and a kidney shaped swimming pool which was all
the rage and what the seventies or something. And actually
Church our guest has also got has got the Lincoln.
He's checking it out as well, six bedroom, five bathroom,
three car parking. It's expensive. It's got a one hectare
estate featuring a pool, tennis court, paddocks. The square meters
(39:17):
shared that got it's one hundred and eight square meters
that's the size of some new builds, as well as
two hundred and ninety square square meter residence with six
bedrooms as I say, five bathrooms wawser. And it's asking
price two point one five mili, So a lot of money.
But for those who've got a lot of money, maybe
not so much. Ashley, what do you reckon?
Speaker 3 (39:38):
Well? Interesting, So if you look at it, it's it's
either a particular taste or the canvas for somebody who's
looking for it for something that they can turn it,
you know, turn to their own sort of style and taste,
which if you're buying it under RV, which according to
this thing, you're buying it substantially under AUV, you'd have
the budget to do. So, Yeah, somebody's opportunity.
Speaker 2 (39:57):
I just think the kidney shape swimming pool just just
says don't you love it? I mean, even though it's
sort of got a sort of strange looking asphelt sort
of surround to it. I think you'd want to do
something with that, make it a bit more seventies, paps,
or how could you make a kidney shaped swing for
more seventies? There you go.
Speaker 3 (40:16):
You could wear a Safari suit inskad of togs.
Speaker 2 (40:19):
Spar don't know what it's a Fari suit?
Speaker 3 (40:23):
Do you not rep with the shorts? Do you remember
those somebody who would have worn those on your day?
Speaker 2 (40:28):
Oh blimey, God blimey, you're assuming I was mildly more
than five years old in the seventies. But anyway, thank
you for that, Ashley. But anyway, you can go and
check people. You can go and check it out one
roof dot Cutter in z and I'll give you that
address again because it's a lovely looking property. Fifty seven
Hydro road cambridge wiper. So that wraps it all up, Ashley.
(40:49):
Thank you so much for your time, mate.
Speaker 3 (40:51):
It's good talk to you soon.
Speaker 2 (40:53):
Excellent And you can check out any of the previous
hour by looking for the podcast week in Collective. And
we'll be back because we have a new guest for
the Parents Squad who will be joining us, and her
name is Holly Brooker, and we'll be back in just
a moment, talking about the whole digital landscape with kids.
This is News Talk SeeDB.
Speaker 1 (41:14):
For more from the weekend collective, listen live to News
Talk SEDB weekends from three pm, or follow the podcast
on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks,
a bimetal.
Speaker 2 (00:51):
Sing a new song, Yes and very good afternt you
have just joined us. This is the Weekend Collective. I'm
Tim Beveridge. I let that music roll from it because
that's just having a conversation with my producer about how
much I love Aba. I'm going through such an Amber
phase at the moment. Anyway, there we go as I
(01:14):
in fact, I think I said to a colleague, because
I'm not a Taylor Swift fan, he'll probably work that
out anyway. And I said to one of my colleagues,
who is a Taylor Swift fan, send us the best
Taylor Swift song you've got so I can appreciate it.
And I was like, no, it's not for me. But
if every song Taylor Swift was like an Abba song,
I'd be like, She's amazing. Anyway, that has nothing whatsoever
(01:36):
to do with this hour, because this is the one
roof radio show. If you've missed any of the previous
any hour of our show, you can go and check
out our podcast. Look for the Weekend Collective on iHeartRadio.
And a great fun panel there before that with Bridget
Morton and Mark Kreisel, and now we're joined by Well,
he's an old friend of the show, really not so old,
(01:57):
but friend of the show. Been going with us since
I think when we began on the Weekend Collective and
his name is Ashley Church. Could ashually hang gain you.
Speaker 3 (02:05):
Know, Tim, I'm also an Ember fan, I have to say.
But I was just I was listening to that because
normally I try to read the secret meaning into the
music that you produce, the plays. But I'm not entirely
sure what I was up to with Chickachita.
Speaker 2 (02:17):
No, well she does. She's a big fan of Chickatita
and she loves the instrumental bit at the end for
some reason. But I can't remember how the instrumental goes.
Speaker 3 (02:28):
But yeah, very Spanish if I remember rightly.
Speaker 2 (02:31):
Yeah. I mean it's interesting that they. I mean, when
you think about their their their Eurovision song quest When
was a song about well invoking the memories of Waterloo.
Speaker 3 (02:42):
Even though they were they were amazing. There's a there's
a famous shot of them. They were on stage with
you two I think in the early two thousands, and
there's a great shot of Bono going, We're not worthy
we're not worthy and bowing down and he meant it.
Speaker 2 (02:55):
Yeah, a songwriters, absolutely and I had as a as
a probably a seven year old, a huge crush on Agneta,
which has never waned anyway, as probably did the world.
I think anyway, how are you?
Speaker 3 (03:08):
I'm good, I'm good, mate, very good.
Speaker 2 (03:09):
Hey, that question I've written down and I don't sort
of mean it in a mischievous fashion. But there are
a few articles going at the moment Tony Alexander's talking
about buyers are back, but don't expect a frenzy. There
are signs of the signs of the slowdown on interest.
Stock Curta and Zeta are clearer and particularly in Auckland,
(03:29):
and auction room activity are still crawling along winter levels
with no sign of a spring bounce. Those are the headlines.
But my vibe I get because when we were in
the doldrums and predictions are still don't worry about the
end of the year. Property price is going to be
up to ten percent. So I've got this question, will
(03:50):
the real estate market ever be exciting again?
Speaker 3 (03:54):
So short answer, well, long and short answer is absolutely
yes and interesting you should quote those articles. So I
rate Tony so I put tony aside from what I'm
about to say.
Speaker 2 (04:05):
Oh here we go, em brace yourself.
Speaker 3 (04:09):
Well, seriously, the rest of them. I mean, it's hard
not to have to stayin for some of this stuff
because a lot of it comes from you know, this
is over generalizing a little bit, but a lot of
it comes from varsity students that have been in the
you know, the economics department of these banks and institutions
for about five minutes with no experience of the market,
pontificating on what they think may or may not happen. Look,
the reality is that the market's to the market. It
(04:29):
has done what it's done for forty odd years longer actually,
and putting aside the fact this downturn was a bit
unusual because it was artificial, by which I mean it
was created by the Reserve Bank. It wasn't created by
market conditions per se. It will recover as any other
market does, and we will see a return to what
(04:50):
traditionally happens. The question is when.
Speaker 2 (04:53):
I think, probably behind my question on that as well, though,
is I guess the news or the you know, there
was a time when it seemed that the only people
who got it wrong by not being in the market
were obviously those weren't in the market, and everyone else,
regardless of what analysis they had done. If you got
into property at a certain time, you know your rent
(05:16):
was paying for your mortgage, it was a no brainer.
The capital gains were colossal and property prices were doubling
every eight years. That's not the case right now. People
are having to heavily. I think the gap between yield
and what you're paying to own your property is about
four percent or something, So the gaps, you know, you're
having to subsidize it heavily. The market slow. Interest rates
(05:39):
are not coming down that quickly. The demand doesn't seem
to be in there. It seems that it seems like
it's more a game for experts now, whereas there was
a time when it felt like the game was there
for any more on who could make the decision.
Speaker 3 (05:53):
But that was sorry and there was many of us.
Speaker 2 (05:58):
But what I mean by that you didn't have to
really do much science about it all, or it was
just like, yeah, I got it, it's the market like
a buy house, and I bought as many as I
could and I made a fortune. Whereas it feels like
now you have to be a bit more those days
feel like they're gone. Where it's just I disagree.
Speaker 3 (06:16):
I disagree, and I think I think what you look at,
what you're doing is you're judging it at the by
the moment in time, so and by the moment of
time in leave the last two or three years obviously
since twenty twenty one, but if you go back to
two thousand and seven to twenty ten, same thing, after
the GFC, if you go back to nineteen ninety eight,
nineteen ninety nine, same things. So there is always a
period in the market where where things are flat. And
(06:38):
it's interesting because that's the period of time that all
these economic commentators come out and say, you know, the
days of high house prices and Latin house prices and
increases and the double digits are gone, and they're just not.
They're just not. As I said before, the only thing
stopping us being in that that cycle that you're talking
about right now is that is the fact that the
decline in the interest rates needs to be greater to
(07:00):
restore confidence to the market. Once that happens, and to
be fair, it will be tentative, so it won't take
off like a rocket ship straight away, but it will
take off like a rocket ship, and and at some
stage soon we'll be having the same conversation about how
terrible it is at house prices are going up so
fast and how difficult it is the house right while
day all that stuff it'll all happen again, and you
(07:23):
and I will be having this conversation and we won't
be talking about when they're going to go up, We'll
be talking about when it's going to end hm.
Speaker 2 (07:30):
Because okay, yeah, yeah, yeah, okay, Well I want to
throw this out to the audience as well. Do you
think the heyday and the heyday of the property market
when everyone is making more money they can dream of?
Do you think those days are going to be upon
us anytime soon? Or do you think it's been a
longer game? And what's it going to take? Do you do?
You go along with Ashley actually that you know eventually
we'll be having the opposite conversation because at the moment
(07:53):
the news is a bit slugg But by the way,
just probably take calls on this ashlely that the article
and interest stock curtain and z but basically just observing
that auctionary activity is still crawling and no sign of
a spring bouts that doesn't. You were quite harsh on
them comments on that, and the guy who wrote it,
he does look like he's just come out of university.
Speaker 3 (08:16):
So by dig that comment, I guess what I'm saying
is that and this particular wave of them fits into
what I'm about to say is a lot of this
stuff relates to activity that happened prior to the Governor
of the Reserve Bank dropping the mortgage interest rates in
indicating that they will come down and come down further.
So a lot of this stuff is a historic in
the sense that if you're having the same conversation in
(08:37):
three months time, you may well have a different picture
because confidence will the confidence will be starting to be
restored to the market. So, you know, with all due respect,
and I didn't have to look to see who wrote
that particular article, but my comment stands it's this. You know,
easy to write a headline, sit down at your computer
instead of write something that's going to be populous without
really thinking about the consequences of what you're saying.
Speaker 2 (08:57):
Although to balance that, I could refer you to an
article I heard somewhere else where people are talking about, oh,
there's one case of some auction going well, and all
of a sudden the market's on fire. You know, there's
so much hyperbole with the reporting and the property market.
That's always been sort of my beef that it would
be either it's like it's dreadful or it's on fire.
Speaker 3 (09:20):
And no one between hey, and by the way, auctions
are a bit of an unfortunate way to judge the
market because auctions are at their best when the market
is on fire. The whole point of an auction is
to stimulate competition and to get as many people that
prepared to spend as much as possible, and that doesn't
happen in a flat market. And we're still in a
flat market, So you shouldn't. You know, anybody who's using
auctions as a barometer of how the market's doing doesn't
(09:41):
understand how the market works.
Speaker 2 (09:42):
So we want your cause on this eight hundred and
eighty ten to eighty. At the moment, the headlines are
suggesting the markets a bit flat. There have been other
questions around the amount of people that people having to
subsidize their investment properties. Actually, just before we go into
taking the calls, there of course is and does this
play a partner Ashley the legislative uncertainty of a change
(10:04):
of government. So at the moment we've got a government
that is more more friendly to sort of normal conditions,
normal deductibility and all that sort of stuff, But in
waiting in the wings at some stage we have a
government that may undo the whole thing again. And they've
been talked about capital gains tax, which you get onto.
But do you think that there's the legislative uncertainty about
(10:25):
a lack of a bipartisan stead of approach is a
big spanner in the works of yea a market operating
as a market?
Speaker 3 (10:36):
Yeah, so years the answers year, and more so now
than at any stage over the last thirty years, because
prior to twenty seventeen there was a reasonable degree of
complementarity in terms of the policies around this stuff between
the two parties until the Labor Party took a deep
dive into the left from twenty seventeen onward. The flip
side of that, well, not the flip side, but I
(10:58):
guess the confidence in that is it'll be at least
five years and probably nine before we see a Labor
Party as the League Party and a government again. So
I'm not too concerned about that.
Speaker 2 (11:09):
Does that mean that your real estate plans have to
be planned in sort of six to nine year incrementations?
Speaker 3 (11:16):
Well here, but it was about to add to that
that if you look at property investment, so I'm keep
in mind I'm talking about the Labor Party and not
the Reserve Bank. If you look at properly investment over
the last twenty odd years, property investors have done broadly
as well under labor governments as they have international government.
So overall it probably doesn't matter.
Speaker 2 (11:30):
I absolutely probably went up through the roof. I think
I think it was doing pretty well under Helen, wasn't it.
Speaker 3 (11:35):
It was it was doing very To be fair to Helen,
though Helen was running with Michael Cullen as a finance
minister a pretty orthodox econom policy, so you know, there
wasn't a heck of a lot of difference between them
and what National would have been doing.
Speaker 2 (11:45):
Right, Let's take some calls. I eight, one hundred and eighty,
ten and eighty are the days of you know, will
the market ever be exciting again? That's my and that's
my crude way of asking the question. I don't mean
crude as an uer, I just mean it as a
very simplistic way of asking the question. But you know
what I mean? When will the return of bars to
the market see a change in prices? Eight hundred and
eighty and eighty. Let's let's get into it. Peter, good morning, sorry,
(12:09):
good afternoon?
Speaker 4 (12:12):
Are you doing?
Speaker 2 (12:14):
I just have different shifts I work and sometimes my
greeting gets blurred.
Speaker 4 (12:19):
Are you going to be Are you going to be
doing an afternoon shift?
Speaker 2 (12:23):
Who knows? Probably not. I'm doing this afternoon shift, That's
all it counts. Yeah.
Speaker 4 (12:29):
Yeah, I've just brought a commercial property and theirs have
a company for it, Developers Clearance, So hopefully I've done all? Right?
Is there any advanced is buying a rental property? Yeah?
Or people eleven buy a companies rather than than yourself.
Speaker 3 (12:55):
Oh so, Peter, you're asking me for legal advice basically,
which I'm loathed to get.
Speaker 2 (13:00):
Okay, so no specific advice, but what can you tell
us about companies versus individuals own property? And Ashley? How's that?
Speaker 5 (13:07):
So?
Speaker 3 (13:07):
What a concern general terms? And this isn't going to
help you very much, sadly, mate. Is that people try
all sorts of different structures to purchase residential and effet
commercial property, and they primarily do that for tax reasons.
So some people buy them onto trust, some people buy
them in their own names, some people buy them as partnerships,
some people buy them through companies. There are advantages and
disadvantages to each, but those advantages and disadvantages are very
(13:30):
specific to the people, So there isn't just one size
fits all, or I could say I do this, it's
the best option, because what applies for you may not
apply for somebody else who's in a different set of circumstances.
So the best advice I can give you is go
and talk to a tax expert on that stuff and
just make sure that what you're doing is going to
be best and most efficient for you.
Speaker 4 (13:48):
Okay, And on the organ property market, I think it's
just bubbling along the bottom still, but I don't think
it's going to fall much further, if any, and be
maybe one on one percent for the rest of the year.
Speaker 3 (14:04):
If I broadly agree, I mean, there are two things
that need to happen. One of those is that mortgagentist
rates need to come down a little bit more, and
I think we can have some confidence that's going to
happen over the next few months. And the other one,
which is really a subset of the first one, because
it'll be a result of it, is we need to
see some confidence return to the market so that people
(14:25):
actually start getting into it again. So when those two
things happen, and you'd be talking six to seven to
eight months to sort of start seeing the effects of
those roll through Aukland and I did most parts of
the country will will start to take off again.
Speaker 4 (14:39):
Probably just a commercial one.
Speaker 2 (14:41):
Yeah, good on you, thanks, Peter. Yeah, I mean, intuitively, obviously,
you just talk to an account about stuff, wouldn't you actually?
But to me, if you're buying it's an interesting one,
isn't it because the capital gains? I guess. So long
as you as long as you're passing the test as
a company, that you are buying it for the rental
return and not for the capital gain, then it's just
like anyone, I guess. But as I say, we're not
(15:03):
going to make any legal comment, are we, because Chicken? Sorry?
Imagine if I was talking to you in this manner
and it was your first appearance on the show, you'd
be like, what the hell is pretty?
Speaker 3 (15:17):
I'm never coming back. Let's let's it's not my first appearance.
Speaker 2 (15:23):
You know it's not your first rodeo or rodeo whatever.
Pronounce that right, Let's get on to some more call
showy pedro good.
Speaker 6 (15:33):
Right now from South Africa. How you guys, We're.
Speaker 2 (15:37):
Good, Thank you very much from South Africa. I'll have
my accent needs to shift.
Speaker 7 (15:42):
Yeah, yeah, there we go.
Speaker 6 (15:44):
Good enough. Job. Yeah, I mean, just just I mean,
just just a comment to my son as as sort
of a financial professional. The only comments I like really
about this sort of classes and what expected to be
the term. The gap between wages and house prices has
(16:07):
grown tremendously. To say, the last forty years, prices have
been doing what they do. Yes, but for the most
part one has to make at half past growth versus
wage growth, and those numbers have diverged astonomically, and at
the end of the day, at the end of the day,
people can afford what they can afford. And the whole
(16:29):
rocketship comming I think is it's difficult to see how
it is sustainable unless you are get into a position
where wages can come even close to keeping up with
double digit property growth. So that's really living.
Speaker 2 (16:47):
It's a very reasonable call there, pedro.
Speaker 3 (16:50):
Let's actually I actually talk about this very topic that
you're talking about it quite a lot. So firstly, let
me say you're quite right. So house prices, Falkland house prices,
for example, it used to cost four times the average
household encounterment to two thousand and three, two thousand, four
times the average household come. It's come down a little
bit as a result of what's happened to the market
over the last of a while, but it's still sitting
(17:11):
up at around nine times average. So you're right, it's
increased exponentially. The thing you were not taking into account
on that, and I talked about this a lot. In fact,
I've talked on it in the show a few times
is the impact of the cost of interest. And I'll
give you an example of what I mean by that.
So in nineteen eighty seven, and I did some numbers
on this a few years ago, and they'll still hold
up relatively closely. In nineteen eighty seven, because interest rates
(17:33):
were so high. If you took the average income, household income,
and the average household at the average cost of a
home in nineteen eighty seven at the and you factored
in the cost of interest, the average cost of interest
mortgage interest. At that stage, it was costing just over
fifty two percent of household income to buy a house.
Correct by two thousand and seventeen or twenty and sixteen,
(17:57):
because interest rates had come down so dramatically since the eighties,
that had actually dropped to thirty seven percent, even though
and this is the key, even though house prices have
increased so dramatically. So the point I'm making to you,
as you're right, it is going to slow down over
time because you can't keep having house prices getting higher
and higher and people still being able to afford them.
But once you factor interest rates in as well, the
(18:20):
equation is not quite so simple as it looks on
the surface. And as I say, thirty seven percent of
house gold and come in twenty seventeen, even though house
prices were so much higher. The point I would make,
and I did some work on this a couple of
years back, is that when I analyzed what had happened
to house price growth since two since two thous and
sorry nineteen eighty, over that forty year period, it used
(18:40):
to take about ten years for house prices to double.
That had slowed by twenty twenty to about twelve years
and the opinion I took at the time no reason
to change it is that that rate of doubling will
continue to slow, but house prices will stern double. So
I stand by my rocket ship cop.
Speaker 6 (18:57):
Yeah, yeah, and I mean maybe. And here's a question
a follow up VISI with regards to the the metric
of affordability, right, you use numbers of fifty two and thirty.
I mean the long run average as a percentage of
someone's disposable income. It's been what I mean, correct me
if I'm wrong with between brilliant and five percent. Depends
(19:18):
on it depends in the country.
Speaker 3 (19:21):
Yeah, yeah, there areas with.
Speaker 6 (19:23):
Long run averages of around thirty's that's close to fifty year.
Speaker 2 (19:29):
Yeah, Pedro, I want to know where where are you
at with what you want to do in the market.
Speaker 6 (19:34):
Yeah, I mean so I'm in the market.
Speaker 2 (19:38):
Sorry, you've recently what you've recently just bought investment or.
Speaker 5 (19:41):
Personally, I wouldn't buy any investment property. Yeah, we'll with
the alternatives out there, you know, the return on investment
for properties just not complaining enough for me, given all
the alternatives that are out there, with with with equity marketers.
But again, and I do appreciate. You know, that's equity
(20:02):
markets onto everyone. But that's being said, did.
Speaker 2 (20:05):
You buy on video shares or something five years ago?
Speaker 3 (20:09):
I wish I did social media company.
Speaker 6 (20:13):
I'm going through them all.
Speaker 8 (20:14):
I'm going through then more and yeah, I mean but
again I think pointing earlier about it being a niche
for professional I think that is getting more and more
of us, especially in the rental market, Like you've got
to really know what you're doing because the margin for
era is yeah, yeah.
Speaker 2 (20:36):
No, I got on you.
Speaker 5 (20:37):
Look.
Speaker 2 (20:37):
Actually, I do think that there is something in that
that it does feel like the degree of that there ago,
that's the expression I'm looking for. Ashley. Hey, by the way,
thanks for your cor pedro. It feels like the degree
of difficulty is different. There's a way of putting it,
whereas maybe there's a time when I would have considered
that you just just go and buy property, don't worry
(20:58):
about what it is, where it is.
Speaker 3 (21:00):
Just so I've been doing this, I think with you guys,
back when it was you and and in fact it
was the other term. That's how far back we go. Oh,
I remember at some point when you first started, we
were having a very similar conversation that I think at
that stage you were saying to me, it's all getting
too hard. House prices thinking to increase, And I reassured
you at the time, and they did.
Speaker 2 (21:19):
But I knew absolutely nothing back then.
Speaker 9 (21:22):
But I'm giving you the same I'm giving you the
same reassurance. Again, nothing's changed in the fundamentals of the market.
And I understand why people do it, and I understand
where it comes from, but it's.
Speaker 2 (21:34):
And I can also say that you that I think
the conversations over the years, we have frequently had conversations
where we look back at the times when interest rates
for eighteen percent, and you're consistently, to be fair to you,
I'm sort of I'm doing you not a favor, but
I'm just supporting in a way what you've just said
(21:54):
that You've said that in many respects, property has always
been challenging. It's just that there were when the property
market when absolutely nuts. I guess that's when it's just
sort of, well, I'll just buy something you and you
can't fail.
Speaker 3 (22:07):
But hey, look at them. Never say never. But I
you know, I suspect that what we went through in
twenty twenty is never going to happen again. Certainly not
in our lifetime, hey, because it was required thing to
do what it did and that's not going to happen.
Speaker 2 (22:18):
I've got lots of questions for you. We're going to
come out of the break though, because we've just chatted
quite happily and where we'll be back in a second.
It's and you can give us a call. Will the
exciting well the market be exciting again when it comes
to real estate or is it going to be a
bit more degree of difficulty? Experts only? What do you reckon?
And by the way, Ashley loves it when you disagree
(22:39):
with them, So give us a call. I eight one
hundred and eighty ten eighty text nine Back in.
Speaker 1 (22:44):
A tack keeping your eye on the property market. The
One Roof Radio Show with Conroy Removals New Zealand's favor remover.
Speaker 3 (22:52):
They know what moves you used talks it.
Speaker 2 (22:54):
Be as Welcome back to the Weekend Collective. I'm Tim Beverage.
(23:18):
My guest is Ashley Church. He's putting a property commentator
well beyond this show as well. But ever since we
started on the Weekend Collective and we're talking about when
will the exciting times return to the market depends what
exciting is actually, of course, actually, because with properties being affordable,
if you are looking to buy a house and you've
just bought one, that's very exciting, isn't.
Speaker 3 (23:37):
It interesting definition, Absolutely, And anybody who's bought a house
over the last couple of years has probably done pretty
well relative to where the market's going to be, so
they'll be rubbing their hands together in a few years time. Yeah.
Speaker 2 (23:51):
Actually, a couple of texts before you go to that,
Tim Ashley Church is my very favorite of all your guests. Wow,
that's a big one, and Christy says, no, it's from
Chrissy who said this came about when he read Adrian
Or's pedigree on your show. So she loves you because
you're Actually I do want to ask you about that
because of the you know, the market has been through.
(24:12):
It an extraordinary sort of situation where we had incredibly
cheap money pump the values up because people thought that
property was the no brainer that it was. And a
lot of those people are probably in deep trouble now
because they've now got very expensive mortgages or about to
bounce off onto a different mortgage rate. What what does it?
(24:33):
What does a normal functioning market rely on when it
comes to mortgages and interest rates because the reserve Bank's
always going to be there. But is there what's normal?
Speaker 3 (24:44):
So there's no such thing as a completely unregulated market
by to the fact that you have the reserve bank there,
so it's always going to have a handbrake on interest
rates or the opposite, depending on what it wants to
do with inflation.
Speaker 2 (24:57):
But a gym.
Speaker 3 (24:57):
But putting that aside, a normally functioning market as a
market where the government basically keeps out of of the
day to day operation of the market, where buyer and
sell can agree on prices and both come out of
that situation in most cases believing that there's been a
fair deal done and that there's a reasonable orderly incremental
(25:21):
increase in house prices over a period of time. And
that third one is the one that's controversial because there's
a lot of people who say house price growth is bad.
We haven't got time to deal with it today. But
I do quite a strong dissertation on why house price
growth is actually one of the most significant drivers of
the economy, and that house price growth has been extraordinarily
(25:42):
good for this country over the last forty or fifty years,
and long Mack continue.
Speaker 2 (25:47):
What about what about the argument, well, we're going to
call it to go to and just a tech but
what about the argument that there's been so much emphasis
on property being the only way to make serious money
in New Zealand that it's sort of taking money away
from investing in other productive sides of the economy, et cetera,
et cetera.
Speaker 3 (26:01):
It's true, there's some truth in that, and there's this
concept of what they call capital markets, which means that
New Zealand doesn't have even what Australia's got in respect
of the depth of their share market and some of
the forms of investment, which is why Keywys have been
such avid investors in property, because it's been one of
the few things that they could invest in. But that
shouldn't take away from what it's actually done to our
economy and the way that it's actually fueled growth and
(26:22):
fueled wealth in a way that's enabled people to look
after themselves and their kids over the last forty or
fifty years, which has been, as I say, extraordinarily beneficial
and flies in the face of all the nonsense about
you know how house price growth is such a bad thing.
And just to finish that before we go to the call.
My caveat to that would be if the effect of
that had been that we've seen home ownership drop off
(26:44):
over the last forty years. So, in other words, if
the cost of having our high house price growth economy
was that fewer people were able to own their own homes,
I'd have a different view. But that hasn't been the case.
The rate of home ownership in this country has been
remarkably consistent for about one hundred years.
Speaker 2 (26:58):
Okay, in fact, I want to dig into that a
bit more. But guess what. Let's go to a call,
shall we, Nevill High Nevill Hi?
Speaker 7 (27:05):
Yes, thanks, I just want to make a question. I
went on to Quotable Value site yesterday to have a
look at the valuation of old property I had. I
had four bedrooms, two toilets and three bathrooms. Now I
only have three bedrooms and a toilet and a bathroom
and one Now I'm just wondering whether that impacts on
(27:26):
the valuation of my property and when it works out
for for rates and everything like that.
Speaker 3 (27:33):
Oh no, the last bit's interesting. The answer in terms
of rates, No, it doesn't because the rating value or
the the Yeah, the raidable value is is a broad
brush to determine sort of average values across a suburban
area in a city for the sole purpose of determining
what you should be paying in rates. So I think, yeah,
(27:55):
so I thought when I thought you were going to
ask me, just finished the answer. What I thought you
were going to ask me was, doesn't compact on the
value of the property of resale purposes, And to which
my answer was going to be, it is about six
or si even of these various different sites that purport
to be able to tell you that the value of
your property, and if you went to all seven of
them and took an average across them, you'd find that
they could be two or three hundred thousand dollars apart
(28:16):
in some parts of the country. So I treat them
with a little bit of a grain of salt. They're
an interesting exercise, and you know, seeing what your house
might or might not be worth, but as a guide
to its real value, wouldn't take too much notice of them.
Speaker 7 (28:27):
I'm not looking at from that perspective. I'm just looking
at from you know that quoting four bedrooms and two bathrooms,
two toilets. I just found that there's no plans, So.
Speaker 2 (28:43):
What does it say, What does it say yours is
versus what the reality is? Again, just tell us.
Speaker 7 (28:48):
It's four bedrooms, two bathrooms, two toilets and we've only
got three bedrooms and a bathroom toilet.
Speaker 2 (28:56):
So four two and two versus three one and one?
Because actually, can I play Devil's advocate or just disagree
with you? So I live in a block of three
units and my property is described as having four bedrooms
and you know, sort of two toilets, et cetera. And
it is valued at it's valued about a couple hundred
(29:18):
thousand more than the unit next to me, which has
got right three. So I was thinking that they it
looks like they do take into account the number of
bedrooms because the value I challenge, yes, right carry that's
credible values.
Speaker 7 (29:32):
It's a credible value site. So they pass that information
onto the council, and the council don't have any plans
in my house. They have plans of in the side
of me and across the road, but not my property
I bought in nineteen thirty. But you know, it's it
just seems a bit odd, I am you saying it
doesn't unpack.
Speaker 3 (29:54):
I am and despite what Tim just said, because I
understand what he's the point he's making that his house
is worth more than the neighboring. So I suspect if
you looked at the actual those two units, there's probably
something else distinguished between the two.
Speaker 2 (30:06):
I love there, and it's sensational it.
Speaker 3 (30:10):
George Washington slept here, but my point. But my point
remains that for rating purposes, it's not as precise an
instrument as it would be for other purposes. For example,
if you were trying to sit cure funds from a
bank where they're actually quite concerned to make sure that's
pretty accurate, counsels Jazz looking for a gym, so I'd
be more I'd be more concerned though about the description
(30:32):
of the property, the legal description, because if you ever
come to sell and the lawyers decide to do but
due diligence to work out what title they're actually changing,
there's a difference between what the council said you've gotten
what you've got, So that would worry me. You might
want to get that sort.
Speaker 7 (30:44):
Of Well, council doesn't say I've got anything because on
their site, so it's just a whatever you would like
to call it.
Speaker 3 (30:54):
I have to say. Part of the reason is, I mean,
you're you're in the you're under the Hut council there,
aren't you.
Speaker 7 (30:59):
Yeah? Absolutely, yea.
Speaker 3 (31:00):
If it was Wellington, I wouldn't be surprised because it's
muppets basically, but I'm not die what's going on with
that city. But yeah, i'd be having a check to
these two things line up.
Speaker 7 (31:13):
Yeah, thanks, Yeah, okay, thank you. Thanks.
Speaker 2 (31:18):
See, just before we go to the break, I just
locked up my neighbor's valuation and there is a and mine.
There is a twenty five percent discrepancy between the value
of my unity and the value and you know, we're
talking several hundred thousand dollars here. So we've got four
bedrooms and we've it's suddenly it jumped up because I
(31:41):
remember going again, I probably got told off by you
for haggling my rates down because I said, hey, it's
not you know, not that flash, and they popped it down.
But they've popped it back up and they're all valued
at first of June twenty twenty one, and they're just
so yeah, mine's yeah, the neighbor next to me, So.
Speaker 3 (31:57):
It doesn't start from a zero base. When they do
those aradible valuations, which are every three years, they start
using the previous one as a base. So I can
only assume, I mean, no, no, that'said if you never
look at it. But I can only assume that there's
been a creeping increase in your value over and above
your neighbors over over a progressive number of these things.
Speaker 2 (32:12):
And then, because I mean, we're the end unit, which
is a slight, but we've all got exactly the same,
exactly the same everything. Maybe I should object to my rates.
Should I object?
Speaker 3 (32:24):
I wouldn't, but up to you.
Speaker 2 (32:26):
Well, it just means I'm paying. It's for a few
hundred bucks a year in rates compared to my neighbors,
and I don't like that. But fair enough, you know.
I'll talk to you about this off air sometime anyway,
hey by, so we can taking more calls on not
on that particular is shoe. We've got lots of text
to get to, which we'll do straight after this is
news talks. He'd be it's eighteen minutes to five.
Speaker 3 (32:46):
I've ever lie in the house, is blone?
Speaker 2 (32:49):
I keep loone. I'm clapping, but there's no clap bone
house looks like where the armish there's really no part
to pay the power welcome TEXI and we can collect them.
I wonder if radio show I think I produced a
Tira has googled songs that have the word house in it,
and that's whatever that was. I don't know what that was.
(33:10):
It wasn't quite abba, though, was it.
Speaker 3 (33:13):
He's let yourself down. I just realized why. I was
a bit confused because I thought you lived on a
luxury yacht and I was trying to work out with it.
Speaker 2 (33:22):
That's the one. Yeah, it's funny. I've just done a
bit of digging into this and they've got the land
value way down on my on the on the neighbors
versus mine, whereas we all own the same land. So anyway, interesting. Anyway, Hey,
we've got some texts to get through, so let's do it. Hi, Tom.
I know this is not really the question for today.
(33:42):
And look, I'll give our disclaimer that we don't give
specific financial or advice. But this person says, as a
homeowner of a two million dollar property, we're thinking of
downsizing and being mortgage free, and about a one point
two million dollar house. Silly idea. Or okay, in the
present market. I guess what are your reflections.
Speaker 3 (33:59):
Depends on how old you are and at what point
you're at in your terms of your career, in your life.
If you're over sixty, probably not a bad idea if
that was always your plan. If you're forty five, maybe not.
So it really comes down to you overall.
Speaker 2 (34:10):
Okay, let's just assume that they're looking to free up
some cash. I think the question is really just about
the present market. Are you better to wait until because
I mean, everything moves up, doesn't it.
Speaker 3 (34:23):
But time is your friend with the property market. So
if there's no reason to sell right now, and there's
no pressing financial burden in terms of owning what you've got,
you hang onto it for as long as you can.
Speaker 2 (34:32):
So if you've got a more valuable asset, hang onto
that for as long as you can, because it will
differentiate itself by a greater dollar amount from the cheap asset. Correct. Yep,
Oh yeah, I've learned something from you over all these years.
Here we go.
Speaker 3 (34:46):
You only take the bits you like for.
Speaker 2 (34:52):
High team. Does Actuley map rateable values along the same
lines as property prices? Where does he see RVs? In
ten years. I guess that's from Gary. Yeah, where does
he see?
Speaker 10 (35:03):
No?
Speaker 3 (35:04):
I don't. No, I don't, And so are these are?
That's ratible values which are almost exclusively there might be
a couple of exceptions to this, but almost exclusively done
under contract by quotable value. On behalf of councils around
the country are and quotable value. I hate it when
I say this, but it's true. Are a less precise
instrumental because their purpose is less precise. It's just about
making sure that people are they're there share So so no,
(35:27):
I don't track them against other valuations, and I don't
see them as a particularly accurate barometer of valuations.
Speaker 2 (35:32):
Of course, we assume that you meant radable values rather
than recreational vehicle, which would be completely different conversations. In fact,
then you go sell you two million dollar property in
via recreational vehicle. There you go, they'll free up some
capital anyway, High Jen, that's not specific specific financial advice,
by the way, or as me being silly, High Jens,
what would your thoughts be about buying our rental property
(35:53):
in a provincial town? The yield would be reasonable in
a four years time. The new riding or mean it
will just take one out of Wellington. Thanks in advance
as Annie, which I can get ahead of you. Ashlely
in saying, well, she's making the argument to do it,
isn't she?
Speaker 3 (36:05):
Well, it comes down to what you're looking for, and
she's absolutely right. The age old argument with property investment
is between yield and capital growth. Yield being you're making
more on the property than it's costing you to own it,
and that's getting harder to do, to be honest. Capital
growth being that you're buy the property because it's going
to be worth more than ten years time and you're
wanting to maximize that. Often that choice comes down to affordability,
(36:26):
and my argument would generally be if you can afford
to pay more, buy more.
Speaker 2 (36:30):
I think what she's doing is arguing for to do it,
isn't she, Because she's saying the yield's reasonable, and then
she's saying in four years time, the new writing or
mean or just take one out of Wellington. In other words,
she's saying the yield is reasonable and I'm anticipating capital
growth in four years.
Speaker 3 (36:42):
Yeah. Well, I'm just going to say she's obviously talking
either the libin or O techy probably given the for
you the case, those values are going to go up
once she's right, once that motor axtension goes through, so
they will go up and value after that.
Speaker 2 (36:56):
Okay, Karl asks Hi. Actually, with the recent government retrenchment,
it feels like Wellington property has been particularly impacted. Do
you think this could result in good opportunities over the
next six months as well? No specific financial advice, Carl,
but Ashley go.
Speaker 3 (37:10):
Well, I'm not going to give specific advice the only
and I'm sorry I haven't got these figures in front
of it. I read something recently, in fact, it came
from David Farrer indicating that the change in overall headcount
and Wellington since the new government had come in, when
you looked at it overall, it was actually very small.
So although there's a lot of noise being made about
the fact that supposedly the new government's been slashing head count,
(37:33):
the total numbers actually aren't that great. So I think
a lot of that hyperbly by the media. Having said that,
is it going to make a difference to the market, No,
probably not, because in the biggest scheme of things, well,
and you'll go with the rest of the country just
as it always does. So I wouldn't be I wouldn't
be hanging my hat and on that as a source
of of a better purchase than you might otherwise have made.
Speaker 2 (37:52):
Okay, right, it's ten to five back in a moment
properly of the week as.
Speaker 10 (37:55):
Next and we're back on the abba.
Speaker 2 (38:17):
So we're all happy, aren't we, Ashley. This is the
week in collective one roof radio show. Now it is
six and a bit minutes.
Speaker 1 (38:24):
To five, the one roof property of the week on
the weekend Collective.
Speaker 2 (38:31):
Yeah a fact. That's the reason we played take a
chance because this is or take a chance should I say?
Because you can take a chance on this house Chance
fifty seven This is the property of the week, Go
and check it out of the one roof of dot
courted in zaid sight. It is fifty seven hydro road
Cambridge WIPA and it's well the thing that captured me
by it. It's got it looks like an Ashveldt tennis
(38:54):
court and a kidney shaped swimming pool which was all
the rage and what the seventies or something. And actually
Church our guest has also got has got the Lincoln.
He's checking it out as well, six bedroom, five bathroom,
three car parking. It's expensive. It's got a one hectare
estate featuring a pool, tennis court, paddocks. The square meters
(39:17):
shared that got it's one hundred and eight square meters
that's the size of some new builds, as well as
two hundred and ninety square square meter residence with six
bedrooms as I say, five bathrooms wawser. And it's asking
price two point one five mili, So a lot of money.
But for those who've got a lot of money, maybe
not so much. Ashley, what do you reckon?
Speaker 3 (39:38):
Well? Interesting, So if you look at it, it's it's
either a particular taste or the canvas for somebody who's
looking for it for something that they can turn it,
you know, turn to their own sort of style and taste,
which if you're buying it under RV, which according to
this thing, you're buying it substantially under AUV, you'd have
the budget to do. So, Yeah, somebody's opportunity.
Speaker 2 (39:57):
I just think the kidney shape swimming pool just just
says don't you love it? I mean, even though it's
sort of got a sort of strange looking asphelt sort
of surround to it. I think you'd want to do
something with that, make it a bit more seventies, paps,
or how could you make a kidney shaped swing for
more seventies? There you go.
Speaker 3 (40:16):
You could wear a Safari suit inskad of togs.
Speaker 2 (40:19):
Spar don't know what it's a Fari suit?
Speaker 3 (40:23):
Do you not rep with the shorts? Do you remember
those somebody who would have worn those on your day?
Speaker 2 (40:28):
Oh blimey, God blimey, you're assuming I was mildly more
than five years old in the seventies. But anyway, thank
you for that, Ashley. But anyway, you can go and
check people. You can go and check it out one
roof dot Cutter in z and I'll give you that
address again because it's a lovely looking property. Fifty seven
Hydro road cambridge wiper. So that wraps it all up, Ashley.
(40:49):
Thank you so much for your time, mate.
Speaker 3 (40:51):
It's good talk to you soon.
Speaker 2 (40:53):
Excellent And you can check out any of the previous
hour by looking for the podcast week in Collective. And
we'll be back because we have a new guest for
the Parents Squad who will be joining us, and her
name is Holly Brooker, and we'll be back in just
a moment, talking about the whole digital landscape with kids.
This is News Talk SeeDB.
Speaker 1 (41:14):
For more from the weekend collective, listen live to News
Talk SEDB weekends from three pm, or follow the podcast
on iHeartRadio.
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