September 21, 2024 • 40 mins
The average house price in New Zealand is nine times the average income.
The ratio is one of the worst in the world - but why?
Property expert Nichole Lewis joins Tim Beveridge on The Weekend Collective to discuss.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talk SEDB.
Speaker 2 (00:42):
Be Silent Changes.
Speaker 1 (00:47):
Yes, welcome back to the Weekend Collective. By the way,
it is a shortened Weekend Collective today because we will
be taking the commentary for the All Blacks match, and
so that means that we'll be wrapping up here after
this hour. This is the This is the One Roof
Radio Show. If you missed our panel, we had a
great front on the panel with Calm Donald and Frank Ritchie.
So you can go and check out the podcast. Look
(01:08):
for the Weekend Collective on iHeartRadio and the Way You Go.
But right now, as I say, it is time for
the One Roof Radio Show. And my guest is, well,
she's done all right in real estate. I think it's
probably that's a fairly casual way to describe it. Ther
name is she's written a book called Property Quadrants. The
new edition of it is at the publishers right now apparently,
and she is the CEO of the Property Lifestyle and
(01:30):
she joins me in the studio now, Nicole Lewis, Hello, Nicole,
how are you going?
Speaker 3 (01:33):
Hello? Hello, I'm good, Thanks very much for having me.
Speaker 1 (01:35):
Yes, you're looking I love your looking almost summary today.
Are those daisies or something?
Speaker 3 (01:40):
Oh yeah, my spring daisy Absolutely.
Speaker 1 (01:43):
Yes, I jump her on with the spring daisies on
the front. Yes, and you managed to remove the gun
boots for something a slightly flash on the feet too,
So good to see you. Absolutely Actually, So what we're
going to talk about today is I think most people
at some stage have looked at our property market and
(02:03):
been curious as to what it looks like compared to
overseas property markets. And I would say, in my lay
as a layperson, having had a look at what you
can buy on zillow dot com, which is quite a
fun website, no matter how broke you feel, go and
see what you can buy for in Detroit for about
twenty thousand dollars. You'll feel rich. But the general vibe
(02:25):
here is our market is pretty expensive compared to other countries.
I guess the first question now I want, we want
your cause on this eight hundred ten eighty text nineteen
nine two is New Zealand overpriced because when you look
around the world, there are a lot of places where
you can get properties for a hell of a lot
less than what you have to pay just for basically
entry level stuff in New Zealand. So firstly, nicole, is
(02:48):
New Zealand expensive in a global context?
Speaker 3 (02:52):
That's a very good question, and to a degree. See
the interesting thing about New Zealand it's one of the
most difficult countries in the world to borrow money, is
it it is?
Speaker 4 (03:04):
Yes?
Speaker 1 (03:05):
Why? Oh really that was a fun fact.
Speaker 4 (03:07):
Yeah.
Speaker 3 (03:07):
Yeah. And also it's a every single country has got
a particular town that's super expensive and a particular town
that isn't like Detroit, for example, is obviously one of
the cheapest in the US, and of course New York
Manhattan being one of the dearest in the US.
Speaker 1 (03:26):
Yeah, that's it's worth reminding ourselves. That's right, that New
York is kind of up there.
Speaker 3 (03:30):
Yes, yes, yes, So I've looked at property. I looked
at property in New York. I was there earlier in
the year. I had a bit of a look by
a nice bargain for about fifty million that was being
sold off.
Speaker 1 (03:41):
And I'm guessing for American of what was that going
to get you? A fifty mil let would get you
a nice apartment?
Speaker 3 (03:46):
Look nice apartment wrecked. It was nice top floor apartment
looking over Cycral part top four.
Speaker 1 (03:51):
Okay, so one of the nicer properties in New York
possibly possibly. Yeah. So we're not.
Speaker 3 (03:58):
Talking entry level, no, no, entry levels much cheaper. You
can pick up something entry level for about five million
US much cheaper.
Speaker 4 (04:04):
Yeah.
Speaker 1 (04:05):
So yeah, carry on.
Speaker 3 (04:07):
So I've done property in New Zealand, Australia, America, South
Africa actionally, and so in the UK. So is New
Zealand expensive on the world stage? Yes in parts and
no in other parts. Like every other country in the world,
We've got our expensive city being Auckland, and then we've
(04:27):
got our areas that are slightly cheaper if.
Speaker 1 (04:30):
I could just chip in there. I think probably the
why it feels more expensive is because our most expensive
market is Auckland. Okay, we can have Queenstown in there
as well. I don't think Wellington's doing so flash at
the moment. But the problem is Auckland's a third of
the whole country's population, so so many New Zealanders are
affected by Auckland. Is that part of our perception problem?
Speaker 3 (04:51):
I think it is. I think, yeah, you're right, because
we've really got the rest of the country will hate
me saying this, but we've really got one major center
that stands out about others property wise, being.
Speaker 1 (05:02):
Auckland, Yeah, plus Queenstown, Oh yeah, yes, and Queenstown queens Town.
It's almost like they're related, aren't they. One has what
one does, have better scenery, although if you live near
the sea in Auckland you're doing all right. Anyway, carry on.
Speaker 3 (05:15):
A she was down in Queenstown last year looking at
property and it has done a pretty massive rise in
the last sort of five to seven years to catch
up to Auckland. Has is it going to continue? Who knows?
Who knows so? But what the interesting thing about New
Zealand is because I've looked at some of these world
charts for the last sort of thirty years and New
(05:36):
Zealand has consistent growth over a long period of time.
So more recently, when you're talking post COVID, New Zealand
had a spike against the other countries in the OECD,
and it did sort of rise quite substantially post COVID,
but it also dropped bigger. It had a big drop
in New Zealand.
Speaker 1 (05:57):
We had a massive rise because the money was basically
giving it away, just weren't.
Speaker 3 (06:01):
They also was everywhere else in the world, but New
Zealand is not visit it for a bit.
Speaker 1 (06:04):
Long though, that didn't we Well, oh well that's a
political argument, isn't it.
Speaker 3 (06:08):
Yeah, well, when was the last time we had two
percent interest rates? I don't know, never exactly. So therefore
we were as Kiwi's like, my goodness, the money is
amazing and when things are hot, people think it's never
going to end. And then New Zealand also was the
country out of the five I looked at.
Speaker 1 (06:30):
So what did you look at? You?
Speaker 3 (06:32):
UK, Canada and New Zealand, Australia and Ireland was in there, okay,
and New Zealand put its interest rates up faster and
harder than any one of those other countries. And the
other two interesting things all of those other countries rebounded
closer to their post COVID high than New Zealand did.
Speaker 1 (06:53):
Yeah. Is that because we've punished ourselves too much? Have we?
Speaker 3 (06:56):
Correct?
Speaker 4 (06:57):
We have?
Speaker 1 (06:58):
I was seeing that conclusion coming. I thought I'd just
opened the gate.
Speaker 3 (07:01):
Correct correct? You know, it was like we had this
massive property high and then this massive property hangover when
everything went up so hard and so fast interest rates
that is of course.
Speaker 1 (07:11):
Yeah, so where do you see us? Because you were
saying we're one of the hardest countries to borrow it,
which maybe I should have phrased my question at the
start differently then, because our initial topic was why New
Zealand prowss's price is so expensive compared to the rest
of the world. But I think if we take we
(07:32):
need to take that borrowing into into account as well.
So can I rephrase it as a bit is the
better question? Why is New Zealand the New Zealand house
market one of the least accessible in the world. Would
that be a fairer question and would it be true?
Speaker 3 (07:47):
And I think the thing is you can split the
New Zealand market into four different buyer categories as well,
because we've got like if you look at the statistics
the government puts out, they talk about first home buyers,
they talk about second home buyers, they talk about investors,
and the level level of difficulty for each those categories
is very different as well.
Speaker 1 (08:08):
Let's go through those because we've got a bit of
time to talk about this thing. And by the way,
if you're listening and you want to chip in about
New Zealand versus other parts of the world, have you
looked at other parts of the world and thought, oh,
maybe I'll look at that because Australia is the obvious one.
But anyway, we're going to get onto that.
Speaker 3 (08:19):
I've done property in the stry yes.
Speaker 1 (08:21):
But anyway, you came on with that well measured point
you had, So we've.
Speaker 3 (08:26):
Got different sets of rules. So let's talk about pre COVID,
because COVID seems to be a line in the sand.
When you could borrow twenty percent being a first home
buyer sometimes sorry, you only had to put a twenty
percent deposit, and you can borrow eighty percent sometimes up
to ninety percent. Banks have a certain certain window and
investors were hit pretty tough. You could only borrow sixty percent,
(08:48):
hit to put forty percent in. So when my Australian
investors came to me and I said, I know New Zealand,
you don't, New investor, You've got to put in forty percent?
Speaker 1 (08:56):
Can I just interrupt for a second. Was that because
the government wanted to favor first home buyers and personal
buyers rather than investors.
Speaker 3 (09:02):
I think that that's exactly right. But the little mistake
the government made is that they differentiate between a first
home buyer and a second home buyer but they do
not differentiate between an investor and a developer. They're two
completely different things.
Speaker 1 (09:16):
Okay, intuitively, that makes sense that they're competing different things
because an investor might just buy existing housing stock, a
developer is creating a new stock. Correct, and they are.
And the financial game sounds a bit scarier too in
a way, just because of building costs and things that
go wrong and approvals and consents in the RMA, which
we're going to get rid of, blah blah blah of gosh,
there's so much to talk about. I'm getting a bit
(09:38):
of a spurges on our topic. So let's stick with
what you were saying.
Speaker 3 (09:41):
So when the government decides, okay, we're going to put
the handbrake on, because they look at their statistics and
they go, oh my goodness, investors are buying two larger
percentage of the properties. Let's put on the handbrake. So
they put the LVR up to having to put in
forty percent, and then they introduced non deductibility, so all
the investors were like, oh my goodness, I'm going to
stop buying. And then they incentivized developers and new book
(10:05):
and they said, okay, actually that can be deductible, and
that can be a twenty percent deposit. It's like, hey
on wait, because you measure investors as putting the handbrake on.
But when I go out there and I buy property,
and I'm out there at the auctions and I'm out
there trying to put an offers, who I get outbit
on all the time is buy investors. They outbid all
(10:26):
the time. Anything that's developable they will pay well over
market for, so they drive those prices up.
Speaker 1 (10:32):
So you've found the developers are driving prices up there, okay.
Speaker 3 (10:36):
Way more than a mum and dad investor that can
afford what they can afford. So therefore, measuring developers in
the same category as investors doesn't quite give you an
accurate look at what the market is doing. So on
one hand, you try to take investors out of the market,
(10:57):
and on the other hand, you give developers more power
to buy, and they're the ones that pay you.
Speaker 1 (11:03):
Ver small I mean the defense that will be well
if that land's being brought by a developer, they're creating
more housing and therefore it's a win.
Speaker 3 (11:10):
Well, this is where it's interesting, isn't it, Because it
depends what you look at and it is development's brilliant.
We need it, we need new builds, we need new
houses all the time. That's absolutely true. But then don't
unfairly say investors are driving the prices up and let's
sort of put the handbrake on with those when an
(11:31):
actual fact developers are driving the prices.
Speaker 1 (11:35):
Is there a way of them actually getting better data
on that sort of stuff, because when you're if you're
just looking at who's buying, I mean, actually, firstly, how
do they know who's buying a property? I mean, how
does that data actually accumulated?
Speaker 3 (11:47):
How do I assume that is accumulated an IRD number?
I don't know this for sure. It be really good
offenone someone does know. But when you buy a property,
of course, when you go to settle, you have to
give your IRD number one. So therefore, if you're a
personal buyer, you have a personal IRD number. If you're
an investor, you may have a company IRD number. If
you're a developer you also have one. But there's also
(12:07):
a difference in your taxable code. So a developer does
property for taxable gains and an investor doesn't, so you've
got different codes. So the IID must be able to
differentiate with that data, okay, and segregate those two types
of buyers.
Speaker 1 (12:22):
I guess I always think that makes it like it
sounds sense. Sorry, that sounds like it makes sense. But
sometimes I think we can attribute government departments with much
more dexterity than the fact they might have. But that
does make sense, doesn't it.
Speaker 3 (12:35):
Yeah, it makes sense.
Speaker 4 (12:36):
I mean.
Speaker 3 (12:37):
I always remember once chatting to a guy, Andrew King,
who for many many years ran He was the liaison
between the property investor associations and the government. And I
went to a fabulous guy and really new things inside out.
And I remember listening to him speak once when Healthy
Homes was thinking about coming in and we were asking
(13:00):
a lot of questions, and in the end he said, look,
the thing when it comes to the government is that
when they try to improve one thing, it's like this huge,
massive cloud, something else pops out the other side that's
affected whack a mole. And I thought that was a
really good point because the vast majority of us, myself included,
(13:20):
we don't understand the ins and outs of how a
politician makes a decision for the good of the whole country.
We only understand the portion that we are affected. Or
interested in and we comment on that. Hmm.
Speaker 1 (13:35):
Yeah, Actually that's an interesting philosophical point because I'm not
an investor, but I still have an opinion about investors
being not treated like they're the devil, because I believe
just generally in a free market more than government controlling things.
Because that's just my personal philosophy.
Speaker 3 (13:51):
The government need investors. Investors give something like it something
like seventy five and might be eighty five percent. I
forget the statistic. Now private investors provide something like seventy
to eighty percent of the housing for tenants, so they
need us.
Speaker 1 (14:03):
I think people forget that stat They don't realize how
much housing is actually provided by private investment. Mind you,
that's the whole point of view an economy. You can't
tax an economy that doesn't exist. Yeah, and the whole
that's the whole point. I mean, look, that's a philosophical discussion.
The reason, by the way, if you're listening eight hundred
eighty ten and eighty that we're talking about this is
(14:25):
that I should mention that it was based on an
article that Tony Alexander wrote, and it wasn't so much
to do with the price of new Zealand housing. Well,
it was it was about the relationship of key we
house prices to the average income. And here it is
nine times the average income. It used to be what.
Speaker 3 (14:44):
Four times or five times?
Speaker 1 (14:46):
And wouldn't you kill for those days? But here's is
it because our property prices are too high or because
our averag in comes guessing not as flash as some
other countries as well? What do you know?
Speaker 3 (15:00):
That is actually a very good question. And I did
read that article. It was very good.
Speaker 1 (15:06):
It's good.
Speaker 3 (15:07):
Yeah, yeah, yeah, no, I do, and I do think
Tony Alexander's are pretty you know, pretty good economist, obviously
one of the best. And it's an interesting question too,
because if you look at it as far as I
go out there and I look at buying property all
the time. I looked at a property down in Napier
the other day, and even the other day being Monday,
(15:30):
and even or was it Tuesday, and even down there,
I thought, okay, this particular property, three bedroom, one bathroom
house was six hundred and thirty thousand dollars and I thought,
oh my goodness, that's even that's expensive, even for Napier.
And it was a renovation, was a du up again,
six hundred and thirty they wanted, you know.
Speaker 1 (15:46):
Actually for an Auckland. I'm thinking that sounds like a bargain,
but that's just Chris and Oakland. We've got to climatize too,
you know, stuff a billion. You're suspicious.
Speaker 3 (15:55):
That's true. That's true, except for the fact it was
a due up, so it needed to have one hundred
thousand dollars spending on it, and then it wouldn't be
worth that anymore.
Speaker 1 (16:04):
Can you look at it? Do you look at a house?
Because you're an experienced property how do I describe you
an investor?
Speaker 3 (16:09):
Yeah, Alvester, Yeah, I.
Speaker 1 (16:11):
Mean if you do do ups. That's not so much
developing as investing, is it. Can you can you pick
a budget for a house when you walk in and
go let me ever look at that. It looks like
that needs doing. I need some new lining. Probably looks
at the pipes of bit stuffed new gutter's new roof. Okay,
that's twenty five fifty one hundred and twenty five grand,
let's go. Yes, are you quite quick at that?
Speaker 3 (16:29):
It can take me about five minutes. As you're a superpower,
I can picture the whole thing in my head. Finished
in five minutes as well?
Speaker 1 (16:35):
Wow, now is that because you've always been able to
do that or you've learned it through your course of investing?
Speaker 3 (16:41):
Like without putting my psychology head on which I have
studied psychology and NLP. I am a natural high visual anyway,
so naturally I make a picture inside my head. That's
the way I process information first. But that's so that's helpful. However,
being able to picture a property and know the prices,
that's come with experience.
Speaker 1 (17:01):
Okay, well, what are your CAUs on? This is New
Zealand just too expensive? When you look at other countries?
Have you actually done that exercise where you go on
to a real estate firm somewhere in another country and think,
I wonder what it costs to buy on that beautiful
Greek aisle or something, because I have done that and
I think I found some cheap stuff. But anyway, is
New Zealand too expensive? But if it is, does that
(17:25):
mean anything's going to change sometime soon? So Tony Alexander's
pointed out that the average property, sorry Keiwi house now
on average cost nine times the average income. Are we
too expensive? And does something else need to give? What
do you reckon give us a call on that. O
eight one hundred and eighty ten eighty. But if you
do think someone else, somewhere else is too expensive, have
you looked at other things such as well, the cliche
(17:49):
would be the Gold Coast. We might actually have a
chat about that when we come back. My guest is
Nicole Lewis's who's antennae picked up when I mentioned the
Gold Coast, so I think she might have some opinions
on that. Anyway. Nicole Lewis is our guess. She's the
author of Property Quadrants and it's basically your financial future
through real estate investing. It's a very digestible size. And
there's a new update at the publishers right now. I
(18:10):
just thought to mention that n cole Uh, we'll be
back in just a moment. The number is one hundred
eighteen eighty twenty five past four.
Speaker 5 (18:24):
Ain't a writing grip's right down?
Speaker 2 (18:30):
So Swart is done.
Speaker 5 (18:46):
I adjusts the moss and.
Speaker 1 (19:03):
Welcome back to News Talks it be. That is the
one roof radio show. I'm Tim Beverage. My guest is
Nicole Lewis, who's the CEO of the Property Lifestyle. She's
also a property investor with a lot of experience. In fact,
you may recall if you heard Nicole on my show
a few weeks ago, we talked a little bit about
your background because you basically had lost everything and you've
rebuilt it to being a big success, you know, being
(19:26):
happy with your life. That's a good way to actually,
that's probably a good way to describe it, Isn't it nice?
You know, because people always like, I've made this amount
of money. It's like, well, I'm happy with my life.
It's like bingo, you're winning so overseas if you're looking
at So the question we've got, by the way, is
why New Zealand house price is so expensive or less
accessible when you can compare it to the rest of
the world. It's based on a based on a bunch
(19:49):
of recons but also on Tony Alexander's piece. When property
prices are now nine times the average income, what markets
if people? Because there are New Zealanders who will either
look to buy in a different market or even I
don't mean different market in different terms of different countries,
because sometimes people might look to buy just to get
their foot in them on the ladder somewhere else, like
(20:11):
Napier rather than Auckland. But what about looking overseas? Have
you You've said you've looked at quite a few markets.
Does that mean you've you've bought and sold or you've
just sort of had a bit of a bit of
a look. See both.
Speaker 3 (20:24):
I've bought and sold in Australia. I've looked at buying
in America, looked at properly nearly very nearly, bought one
in Orlando. And I have also looked at property in
South Africa. Okay, not talking about that, but you know
also been there and I did years ago. I went
to the UK when we were when I was working
(20:46):
for Australia, so I still live New Zealand, but worked
in Australia and went to the UK to do the
Place in the Sun Expo selling Australian property in the
Gold Coast.
Speaker 2 (20:55):
Right.
Speaker 3 (20:56):
So I know a little bit about the ins and
outs of markets and multiple countries. And there's a lot
of contributing factors as well. Like America, for example, you
can lock your mortgage rate in for thirty years, so
when interest rates were super low post COVID two percent
thirty years woo fantastic.
Speaker 1 (21:16):
Does that mean you are bound to a thirty year
term or you can get out of it.
Speaker 3 (21:19):
Now, you can get out of it. It's like a
fixed rate. You know, we've got our fixed rates, but
there's as fixed rates for thirty so they don't give
you any penalty if you want to sell your house
and repay. But of course you can't refix at that
rate that you had.
Speaker 1 (21:32):
Oh hang on, so if you fix, sorry, just as
a mechanic mechanics thing on that. So if you buy
another house, can you still carry on that mortgage?
Speaker 3 (21:41):
No, you can't, which is interestingly enough, why the States
are currently at a thirteen year high of second home
buy is not buying.
Speaker 1 (21:49):
Because well, it costs them a lot to sell. So
it ends up that's a strange thing on the market too,
isn't it, Because it reduces supply pushes the prices up
correct at.
Speaker 3 (21:59):
The moment it has, which is why the States are
number one at the moment in the six countries I
looked at.
Speaker 1 (22:05):
So where if people say, for instance, A're looking at
the Gold Coast or Australia, what's your take on that?
As a mark?
Speaker 3 (22:12):
Okay, so Australia. Australia's got six territories or states as such,
and like America's got fifty and America's states all different,
so are Australia's. So Sydney being New South Wales is
one of the most expensive places, of course to buy,
and Queensland is a very popular place to buy. Lots
(22:33):
of developers sell offshore. But here's the interesting thing about
Australia is that most of Australia you can only resell
secondhand properties to Australians unless you have a state that's
if IRB approved, Foreign Investor Review Board approved.
Speaker 1 (22:50):
Does that exclude New Zealanders as well? It does to
Australians by here.
Speaker 3 (22:54):
You never used to New Zealanders could You still can?
But you have to buy a new build And they've
introduced an additional tax now for New Zealanders. Can't member
what it's called. But when you buy a proper but
in Australia you pay stamp duty when you settle. It's
not massive. It's about four four grand extra tack.
Speaker 1 (23:10):
I thought it was four percent. I thought it was
some sort of massive percent.
Speaker 3 (23:13):
It's but the new tax is big and I just
totally forget what the new tax is called. But when
I did the math on it, was going to cost.
New Zealanders used to be an exempt for it, we're
now not. And it's an additional seventy odd thousand dollars
on a nine hundred thousand dollar properties. It's big. And
then of course you've got CGT in Australia. Yeah, when
you go to sell.
Speaker 1 (23:32):
Do you have it on a family home as well?
Speaker 3 (23:34):
No, principal place of residence is exempt?
Speaker 1 (23:36):
Good?
Speaker 3 (23:37):
Yeah yeah, so but all your investments are of course
subject to CGT. So typically, here's what I learned when
I was buying and selling property in Australia. This was
before as a New Zealander I had to pay the
tax I was exempted. Now is that you go and
you buy. So the developers, especially in the Gold Coast,
they're doing high rises left, right and center. They sell
(23:58):
eighty percent of those offshore. So singapore Ians used to
buy a huge amount eighty percent offshore. And then of
course what have pins is that when those people go
to sell down the track, they can only sell to
Australian residents right, So therefore values drop. So in the
Gold Coast itself or Queensland, the rising value of properties
(24:20):
are very very slow. So I bought a property in Queensland,
in Hope Island when two thousand, two thousand and seven
it would have been back when everything was rising high
sold it now. I looked up, looked up last year
at Hope Island, that same apartment worth the exact same
(24:40):
money as what I paid all those years ago. So
capital gain and Queensland very very slow. And that's why
because unless you're in any fine you.
Speaker 1 (24:50):
Just want to place in the sun. I've actually a
lot of people, you know how one loves to sing
the propraises of Australia and they say, I can get
a house on the Gold Coast for X, Y and z.
But when you actually see what that property is and
where it is in this massive, repetitive sort of suburbia,
it's not necessary. Really, I don't know. I think that
it's sometimes overstated by people who've gone there and they'll
(25:11):
tell you about all the great things.
Speaker 3 (25:12):
It's like, well, I bought one. I bought a beautiful
apartment in the Gold Coast, loved it, used to go
over there every weekend, loved it. From an investment perspective,
was it worthwhile?
Speaker 1 (25:23):
No, it it was a lifestyle thing.
Speaker 3 (25:25):
It would have been better to have just hired, stayed
in a hotel and bought something else in New Zealand
because New Zealand's grown better.
Speaker 1 (25:31):
Right, let's take some calls. One hundred eighty ten eighty
is New Zealand over price? Actually, the bigger question philosophically
that we should probably get to is, if you do
think New Zealand's overpriced, does that tell you anything with
regards to how you view the New Zealand market here
today versus tomorrow, next year, five years. Do you think
that that has some bearing on what the market's going
to do? And we'll ask them Nicole that at the moment.
(25:52):
But let's take some calls.
Speaker 6 (25:53):
Peter Highday, how are you going right?
Speaker 1 (25:57):
Good things?
Speaker 2 (25:58):
Yeah?
Speaker 6 (26:00):
My questure news that I'm well, I'm rail told. But
we want to shut else better for retirement, so we
actually want to downsize. But my question is just for
a round figures, say in my place is worth about
two million, and I want to buy a place for
about maybe about one point five a new build for
(26:25):
about one point five, so would be a smaller house.
Got no problem with that, and the value of their
houses have got no problem with that. But the difference
what I am increasing is the difference of five hundred
thousand dollars. Now is that difference decain? For instance, in
(26:47):
five years time, I seld my place for three million dollars.
What would the.
Speaker 1 (26:55):
Oh you wanted to know if increases in property are
going to mean you're making more cash, if you're better
to hold on as long as possible? Is that a
way of answering asking you question.
Speaker 6 (27:05):
Because you want to check out to enjoy the rest
of their lives.
Speaker 1 (27:08):
Do you want the most chance you can get?
Speaker 3 (27:10):
Of course you do.
Speaker 1 (27:11):
Yeah, Okay, let's go to Nicole.
Speaker 3 (27:13):
It's a very good question. And the answer, of course,
as you'd be well aware, as the market is cyclical
and at the moment we've we had the bottom of
the market and now we're turning and it's slightly rising.
The thing is, it doesn't really matter where the market
is if you're buying and selling in the same market.
Speaker 1 (27:30):
So one may release a little bit more cash, I guess,
I guess. The question is if you've got a valuable house,
does the difference between that and the downsized house does
that get a bit bigger?
Speaker 4 (27:42):
Well?
Speaker 1 (27:42):
What are it like six hundred thousand dollars?
Speaker 3 (27:45):
Yeah, it's hard to know. It's maybe maybe not. Because
the other thing is, if you're talking about buying a
new build, the other question to go with that is
the price of construction going to go up or down?
Is a new build going to be more less expensive?
Whereas if you maybe didn't buy a new build that
brought something existing, potentially you could buy something that needs
a bit of work you could spin and that you
could renovate it before you move in from very minimal
(28:08):
money and pocket an extra couple of hundred thousand dollars.
Speaker 6 (28:12):
Yeah, that is true.
Speaker 1 (28:15):
Do you need I mean, is that something you need
to do straight away, Peter? Or have you got a
bit of time to think about homes?
Speaker 2 (28:20):
Oh?
Speaker 6 (28:21):
I think you're getting close to it for next year.
But see that what I want to do is moved
to a place, for instance, like over north Shore around
Fong of praor Milldale, Silverdale, all those places I'm particularly
interested in being involved with the community. And so over
(28:41):
there you get to thousands of homes. They do they
all these subdivisions, they do do have a central shopping center,
and Mildale particularly is going to have a very large
one which is going to bet restaurants, bars, you know, whatever,
not not just a supermarket. And that's the sort of
(29:02):
place that interests me is having neighbors walk. I'm in
a very spacious section at the moment, and I had
to see my neighbors unless I walk down to get
my rubbishin, so and that doesn't suit me anymore. I
wanted to live in a community where people should put
that and they say, oh, hi, Peter.
Speaker 2 (29:22):
How are you?
Speaker 1 (29:23):
I've got on your Peter. Well, actually, I guess see
there's another factory's considering, isn't it. I mean, I guess
the money is one thing, but buying on the right place.
So downsizing is a big question for everyone.
Speaker 3 (29:32):
For a lot of people, though, it's a very good question. Yeah.
Speaker 1 (29:35):
For some people it's their whole retirement fund.
Speaker 3 (29:37):
It is indeed right.
Speaker 1 (29:39):
We'll take another call on in just a moment. It
is twenty one minutes to five. This is the one
Rufradio show. My guest is Nicole Lewis. Will be back
in just to take and where are we up to
hand a second? Sorry, just caught me napping there. We
have got back to the one Rufradio Show. I was
having such a good conversation off here I forgot to
come back on here, Kelly.
Speaker 4 (29:57):
Hello, I'm just going to speak to Nicole about property Queensline.
If you've got a property in Queenslean, you pay tax
on it in the Queenslean state, Yes, right, lane tax
every year? Is that correct?
Speaker 3 (30:16):
That's right? Yes?
Speaker 4 (30:19):
Do they have rates on top of the land tax
or the rate is that the land tax?
Speaker 2 (30:25):
Oh?
Speaker 3 (30:25):
Now you see it's been a while since I've done
it now, because you've got both state and federal tax
in each state is different.
Speaker 4 (30:33):
So the thing that I was wondering about because I
was thinking about moving over to say Queenslan and either
find a property, but you've got to pay a land tax.
And if you've got a property in New Zealand, you've
got to pay tax on the one in New Zealand,
so don't you.
Speaker 3 (30:52):
Yes, if you become a resident of Australia, then your
New Zealand you switch your tax to Australia. Therefore, your
New Zealand properties become subject to Australian CGT when you sell.
So that's definitely something to.
Speaker 4 (31:06):
Be aware of that only when you sell, or each
year you get when you put on their tax.
Speaker 3 (31:10):
Reford Well, CGT is only payable when you sell in Australia.
So of course you'd still pay your rates in your
in New Zealand, and you pay your other taxes in Australia.
You don't have to pay stamp duty in New Zealand
only in Australia. But when you sell your New Zealand properties,
you have to pay Australian capital gains.
Speaker 1 (31:31):
Tax on it when you sell New Zealand's.
Speaker 3 (31:34):
Correct, because you become if you move to Australia and
become an Australian resident, you're now subject to Australia's tax regime,
which includes CGT on any properties in New Zealand.
Speaker 4 (31:45):
So what would the rate of the capital gains tax be?
Speaker 3 (31:50):
So CGT in Australia is income tax, so it goes
on the same income tax scale. So from memory, their
highest tax is thirty nine percent. So any capital gain
that puts your income over footing over into that high bracket,
you'd pay you thirty nine percent on which most of
the time and property you put there because you're getting
(32:12):
more than one hundred and eighty thousand dollars worth of
of from the capital game, I see stamp duty. Oh gosh,
I've got to remember, I think you are about four
or five percent. Actually, any questures if you.
Speaker 1 (32:26):
Moved to Australia, If you moved to Australia, your value
of your property here would be valued as when you moved,
wouldn't it not what you made from.
Speaker 3 (32:34):
Your value of your property goes from when you puts
it to when you sell it.
Speaker 1 (32:39):
Well, what I mean is say I live in New Zealand,
I moved to Australia. I've had my house in New
Zealand for twenty years, and then I can't get text
on all that profit because I've only just moved to Australia.
Wouldn't I just get text on the profit from when
I moved to Australia. But that's a textic thing and
you're not really here for those questions. In fact we won't,
but thanks for your call, Kelly. I do have a
question as to just the whole over valuation of New
(32:59):
Zealand or I use that loosely because the market's worth
what it's worth, right, But do you think that given
the international context, if we are you know, we've hearted
to borrow in and it's nine times the everage income,
do you think that we are still due for some corrections?
Just because of the comparisons with a national market or
is just nonsense.
Speaker 3 (33:20):
That's a very good question. Okay. So statistically, I've looked
at the New Zealand market over the last sixty years
and right up until the year two thousand we had
a steady growth. From two thousand to twenty fifteen, our
market increased by I think it's something like two hundred percent,
so it was the biggest growth period we had seen.
(33:42):
And then of course we had another big growth period
through to twenty twenty one, and now we've had a correction.
So are we going to have a correction? I don't know.
I mean the market is cyclical. Every thirty years we
have a major so yes, we'll have another major correction.
Speaker 1 (33:58):
Yeah. So TORII Still we're still slightly it feels just
before we go to the break. So I've done the
property show for a few years now and it felt
then I've said the Statuary Church last week, it felt
that there was a time and property where really the
only impediment to it was your own resistance and getting
your head around buying a property because it was almost
a no brainer. It felt like there was that vibe people.
(34:20):
I don't care it doesn't even matter if you do
your research. Just go and buy a house and somehow
you'd be all right, or you'd be incredibly all right.
It doesn't feel like that now. Is that a fair
sort of just guess of the vibe right now?
Speaker 3 (34:35):
I think I don't agree. I actually still think it's
good to buy a house and you'll be all right.
I think that if people are in buying their own
home that they're going to live in, it's an emotional
purchase and they tend to want to be in a
specific location. That is kind of off the table a
little bit. Now, if you're wanting to be a first
home buyer and you're wanting to buy in an expensive
(34:56):
part of Auckland, you might have to then look at
it more strategically and go and buy a property in
another part of the country. Because what I've seen in
the last six years when I looked at the sixty
year growth as New Zealand has consistently gone up. Will
it continue to I think so? But will we have
a cycle where we drop a huge proportion, Yes, definitely
(35:16):
if you can buy it in that cycle, brilliant.
Speaker 1 (35:21):
Drop because of the peak.
Speaker 3 (35:22):
But that peak was artificial, so correct I mean, we
can only ever pick peaks and troughs in hindsight. We
never quite can see exactly what's happening in the future.
We can guess, by the way.
Speaker 1 (35:30):
On the overseas market thing, I just for fun went
into zilo dot com, which is what market I've looked
at from time to time, and for fun, because it's
been in the news, I went and looked at Springfield, Ohio,
which is where that the legendary cat eating was going on.
And for six hundred thousand you can get a complete
mansion that is just brew well from New Zealand standards.
(35:53):
If it was in if it was in Victoria, av
it'd be about six seven mili here six hundred thousand dollars.
Boom us. By the way, so do you can versions.
We'll be back in a moment. It's eleven minutes to five. Yes,
(36:25):
welcome back to the One roof Radio Show. By the way,
we'll be wrapping the sharp shortly because we'll be taking
the commentary, so no parents squad. But my guest is
Nicole Lewis, and this is one roof radio show. And
guess what At eight minutes to five, the one roof
property of the week on the Weekend Collective. Yes, and
the one roof property of the week is quite It's
a nice accidental segue. I mean mentioned you could buy
(36:47):
that home in Springfield, Ohio for six hundred thousand dollars
in as a mansion. Well, actually this house here has
got quite a bit of bang for your buckets. Four
twenty to a botanical road west end Palmerston North City,
which ties in in so many ways because my guest,
Nicole Lewison, may be looking at a property in Palmston
North is South for a friend, and it is six
(37:10):
hundred thousand dollars. It's a very nice living property. It's
two hundred square two hundred and ten square meter home
perfect for growing families although seeking extra space. Upstairs three
generously sized bedrooms and a large bathroom that has recently
had a full renovation. And downstairs you can enjoy up
and planned living that seamlessly connects to summer ready outdoor
(37:32):
alfresco dining area. That always sounds good, doesn't it, Nicole?
Outdoor alfresco dining area. You've had a look at the property,
what did you make of it?
Speaker 3 (37:40):
Lovely, very very nice property and Palmerston North lots of
students there for Messa University. So another option to buy
is an investment and rent by room.
Speaker 1 (37:48):
Actually it is quite a bit of property considering we've
been talking about the Auckland market among other things. Okay,
I mentioned the mansion and Springfield are high for six
hundred thousand, it's probably about a million New Zealand six
hundred thousand bucks. Is that does seem like quite a
lot of a lot of house for your money, isn't it?
Speaker 3 (38:07):
It does actually look very nice.
Speaker 1 (38:08):
Yeah, So that is the one roof property of the
week for sorry four twenty two a Botanical Road, West
nd Parmiston, North City. If you want to have a
look at it, there's a video guide as well, and
you can take a lot all of the photos on
the one Roof website. That's one roof dot co dot
n Z. Well, that pretty much wraps it up. So
(38:31):
in terms of the news zip, I'm trying to think
of what other questions we've really got to go with
the with the property market. But I've got a few
texts here completely overpriced. Would never buy anything here ever? Again,
Happy to rent now are saving better? Even renting overseas
is so much better as well. Life's so unpredictable now
as well, not attached to owning any anything anymore. I
(38:53):
just tend to think if you can still own a house,
they wouldn't you say, Nicole, it it's good to own.
Speaker 3 (38:57):
I think so, especially when you look at your retirement.
Now you've you own something, You've got rent coming in
potentially that's income right throughout your retirement. Are living longer
these days?
Speaker 1 (39:06):
Hey, by the way, just while we're on it, of course,
the cost of money is always the big one, and
we've we've seen that the Federal Reserve has dropped its
interest rates. We've had data on we sort of have
avoided a technical recession, I think, or about our GDP
still not so flashed. Do you anticipate a bit of
a drop in interest rates in the next little while.
Speaker 3 (39:27):
So my little crystal ball on the property is I
think the property market will rise slightly in twenty twenty five,
and then we'll have a much bigger rise in twenty
twenty six. I think interest rates will come down from
for the next sort of two years or so, hopefully
hopefully they'll come down to three percent again. Then I'll
lock it in for five years hopefully around the sort
(39:50):
of mid fives to low fives by this time next year.
Speaker 1 (39:53):
Another text question which touches on what we discussed between
the two of us and the break, But who actually
evaluates RVs. We've got about a minute left. So this
person has a house with an RV of a million.
The last few houses a lot cheaper. It seems like
dot throwing a dart, says Chris, what do you reckon?
Speaker 3 (40:08):
It's computer generated, So basically, there's a big, big algorithm
that just looks at how much the land and the
houses are in your area, what they've sold for recently,
and calculates its magic numbers.
Speaker 1 (40:20):
Yeah, and it looks if you do have a problem
with your RV, of course, you know, do you like
the fact that you're about to sell and it's got
a higher RV than it should than? Maybe hang on
to it. But if you don't like it, you can
challenge the RV. Most councilors I think have a website
on their online they can go check it. Gosh, time flies, Nicole,
Thanks so much for joining us.
Speaker 3 (40:36):
Thank you for having me look.
Speaker 1 (40:37):
Forward to it again and stick around the voice of
Rugby Elliott Smith standing by for the All Blacks and
Wallabies Test match and we'll look forward to your company
again tomorrow same time. This is News Talk said B.
Go all back.
Speaker 5 (40:53):
For more from the weekend collective.
Speaker 1 (40:55):
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 Talk SEDB.
Speaker 2 (00:42):
Be Silent Changes.
Speaker 1 (00:47):
Yes, welcome back to the Weekend Collective. By the way,
it is a shortened Weekend Collective today because we will
be taking the commentary for the All Blacks match, and
so that means that we'll be wrapping up here after
this hour. This is the This is the One Roof
Radio Show. If you missed our panel, we had a
great front on the panel with Calm Donald and Frank Ritchie.
So you can go and check out the podcast. Look
(01:08):
for the Weekend Collective on iHeartRadio and the Way You Go.
But right now, as I say, it is time for
the One Roof Radio Show. And my guest is, well,
she's done all right in real estate. I think it's
probably that's a fairly casual way to describe it. Ther
name is she's written a book called Property Quadrants. The
new edition of it is at the publishers right now apparently,
and she is the CEO of the Property Lifestyle and
(01:30):
she joins me in the studio now, Nicole Lewis, Hello, Nicole,
how are you going?
Speaker 3 (01:33):
Hello? Hello, I'm good, Thanks very much for having me.
Speaker 1 (01:35):
Yes, you're looking I love your looking almost summary today.
Are those daisies or something?
Speaker 3 (01:40):
Oh yeah, my spring daisy Absolutely.
Speaker 1 (01:43):
Yes, I jump her on with the spring daisies on
the front. Yes, and you managed to remove the gun
boots for something a slightly flash on the feet too,
So good to see you. Absolutely Actually, So what we're
going to talk about today is I think most people
at some stage have looked at our property market and
(02:03):
been curious as to what it looks like compared to
overseas property markets. And I would say, in my lay
as a layperson, having had a look at what you
can buy on zillow dot com, which is quite a
fun website, no matter how broke you feel, go and
see what you can buy for in Detroit for about
twenty thousand dollars. You'll feel rich. But the general vibe
(02:25):
here is our market is pretty expensive compared to other countries.
I guess the first question now I want, we want
your cause on this eight hundred ten eighty text nineteen
nine two is New Zealand overpriced because when you look
around the world, there are a lot of places where
you can get properties for a hell of a lot
less than what you have to pay just for basically
entry level stuff in New Zealand. So firstly, nicole, is
(02:48):
New Zealand expensive in a global context?
Speaker 3 (02:52):
That's a very good question, and to a degree. See
the interesting thing about New Zealand it's one of the
most difficult countries in the world to borrow money, is
it it is?
Speaker 4 (03:04):
Yes?
Speaker 1 (03:05):
Why? Oh really that was a fun fact.
Speaker 4 (03:07):
Yeah.
Speaker 3 (03:07):
Yeah. And also it's a every single country has got
a particular town that's super expensive and a particular town
that isn't like Detroit, for example, is obviously one of
the cheapest in the US, and of course New York
Manhattan being one of the dearest in the US.
Speaker 1 (03:26):
Yeah, that's it's worth reminding ourselves. That's right, that New
York is kind of up there.
Speaker 3 (03:30):
Yes, yes, yes, So I've looked at property. I looked
at property in New York. I was there earlier in
the year. I had a bit of a look by
a nice bargain for about fifty million that was being
sold off.
Speaker 1 (03:41):
And I'm guessing for American of what was that going
to get you? A fifty mil let would get you
a nice apartment?
Speaker 3 (03:46):
Look nice apartment wrecked. It was nice top floor apartment
looking over Cycral part top four.
Speaker 1 (03:51):
Okay, so one of the nicer properties in New York
possibly possibly. Yeah. So we're not.
Speaker 3 (03:58):
Talking entry level, no, no, entry levels much cheaper. You
can pick up something entry level for about five million
US much cheaper.
Speaker 4 (04:04):
Yeah.
Speaker 1 (04:05):
So yeah, carry on.
Speaker 3 (04:07):
So I've done property in New Zealand, Australia, America, South
Africa actionally, and so in the UK. So is New
Zealand expensive on the world stage? Yes in parts and
no in other parts. Like every other country in the world,
We've got our expensive city being Auckland, and then we've
(04:27):
got our areas that are slightly cheaper if.
Speaker 1 (04:30):
I could just chip in there. I think probably the
why it feels more expensive is because our most expensive
market is Auckland. Okay, we can have Queenstown in there
as well. I don't think Wellington's doing so flash at
the moment. But the problem is Auckland's a third of
the whole country's population, so so many New Zealanders are
affected by Auckland. Is that part of our perception problem?
Speaker 3 (04:51):
I think it is. I think, yeah, you're right, because
we've really got the rest of the country will hate
me saying this, but we've really got one major center
that stands out about others property wise, being.
Speaker 1 (05:02):
Auckland, Yeah, plus Queenstown, Oh yeah, yes, and Queenstown queens Town.
It's almost like they're related, aren't they. One has what
one does, have better scenery, although if you live near
the sea in Auckland you're doing all right. Anyway, carry on.
Speaker 3 (05:15):
A she was down in Queenstown last year looking at
property and it has done a pretty massive rise in
the last sort of five to seven years to catch
up to Auckland. Has is it going to continue? Who knows?
Who knows so? But what the interesting thing about New
Zealand is because I've looked at some of these world
charts for the last sort of thirty years and New
(05:36):
Zealand has consistent growth over a long period of time.
So more recently, when you're talking post COVID, New Zealand
had a spike against the other countries in the OECD,
and it did sort of rise quite substantially post COVID,
but it also dropped bigger. It had a big drop
in New Zealand.
Speaker 1 (05:57):
We had a massive rise because the money was basically
giving it away, just weren't.
Speaker 3 (06:01):
They also was everywhere else in the world, but New
Zealand is not visit it for a bit.
Speaker 1 (06:04):
Long though, that didn't we Well, oh well that's a
political argument, isn't it.
Speaker 3 (06:08):
Yeah, well, when was the last time we had two
percent interest rates? I don't know, never exactly. So therefore
we were as Kiwi's like, my goodness, the money is
amazing and when things are hot, people think it's never
going to end. And then New Zealand also was the
country out of the five I looked at.
Speaker 1 (06:30):
So what did you look at? You?
Speaker 3 (06:32):
UK, Canada and New Zealand, Australia and Ireland was in there, okay,
and New Zealand put its interest rates up faster and
harder than any one of those other countries. And the
other two interesting things all of those other countries rebounded
closer to their post COVID high than New Zealand did.
Speaker 1 (06:53):
Yeah. Is that because we've punished ourselves too much? Have we?
Speaker 3 (06:56):
Correct?
Speaker 4 (06:57):
We have?
Speaker 1 (06:58):
I was seeing that conclusion coming. I thought I'd just
opened the gate.
Speaker 3 (07:01):
Correct correct? You know, it was like we had this
massive property high and then this massive property hangover when
everything went up so hard and so fast interest rates
that is of course.
Speaker 1 (07:11):
Yeah, so where do you see us? Because you were
saying we're one of the hardest countries to borrow it,
which maybe I should have phrased my question at the
start differently then, because our initial topic was why New
Zealand prowss's price is so expensive compared to the rest
of the world. But I think if we take we
(07:32):
need to take that borrowing into into account as well.
So can I rephrase it as a bit is the
better question? Why is New Zealand the New Zealand house
market one of the least accessible in the world. Would
that be a fairer question and would it be true?
Speaker 3 (07:47):
And I think the thing is you can split the
New Zealand market into four different buyer categories as well,
because we've got like if you look at the statistics
the government puts out, they talk about first home buyers,
they talk about second home buyers, they talk about investors,
and the level level of difficulty for each those categories
is very different as well.
Speaker 1 (08:08):
Let's go through those because we've got a bit of
time to talk about this thing. And by the way,
if you're listening and you want to chip in about
New Zealand versus other parts of the world, have you
looked at other parts of the world and thought, oh,
maybe I'll look at that because Australia is the obvious one.
But anyway, we're going to get onto that.
Speaker 3 (08:19):
I've done property in the stry yes.
Speaker 1 (08:21):
But anyway, you came on with that well measured point
you had, So we've.
Speaker 3 (08:26):
Got different sets of rules. So let's talk about pre COVID,
because COVID seems to be a line in the sand.
When you could borrow twenty percent being a first home
buyer sometimes sorry, you only had to put a twenty
percent deposit, and you can borrow eighty percent sometimes up
to ninety percent. Banks have a certain certain window and
investors were hit pretty tough. You could only borrow sixty percent,
(08:48):
hit to put forty percent in. So when my Australian
investors came to me and I said, I know New Zealand,
you don't, New investor, You've got to put in forty percent?
Speaker 1 (08:56):
Can I just interrupt for a second. Was that because
the government wanted to favor first home buyers and personal
buyers rather than investors.
Speaker 3 (09:02):
I think that that's exactly right. But the little mistake
the government made is that they differentiate between a first
home buyer and a second home buyer but they do
not differentiate between an investor and a developer. They're two
completely different things.
Speaker 1 (09:16):
Okay, intuitively, that makes sense that they're competing different things
because an investor might just buy existing housing stock, a
developer is creating a new stock. Correct, and they are.
And the financial game sounds a bit scarier too in
a way, just because of building costs and things that
go wrong and approvals and consents in the RMA, which
we're going to get rid of, blah blah blah of gosh,
there's so much to talk about. I'm getting a bit
(09:38):
of a spurges on our topic. So let's stick with
what you were saying.
Speaker 3 (09:41):
So when the government decides, okay, we're going to put
the handbrake on, because they look at their statistics and
they go, oh my goodness, investors are buying two larger
percentage of the properties. Let's put on the handbrake. So
they put the LVR up to having to put in
forty percent, and then they introduced non deductibility, so all
the investors were like, oh my goodness, I'm going to
stop buying. And then they incentivized developers and new book
(10:05):
and they said, okay, actually that can be deductible, and
that can be a twenty percent deposit. It's like, hey
on wait, because you measure investors as putting the handbrake on.
But when I go out there and I buy property,
and I'm out there at the auctions and I'm out
there trying to put an offers, who I get outbit
on all the time is buy investors. They outbid all
(10:26):
the time. Anything that's developable they will pay well over
market for, so they drive those prices up.
Speaker 1 (10:32):
So you've found the developers are driving prices up there, okay.
Speaker 3 (10:36):
Way more than a mum and dad investor that can
afford what they can afford. So therefore, measuring developers in
the same category as investors doesn't quite give you an
accurate look at what the market is doing. So on
one hand, you try to take investors out of the market,
(10:57):
and on the other hand, you give developers more power
to buy, and they're the ones that pay you.
Speaker 1 (11:03):
Ver small I mean the defense that will be well
if that land's being brought by a developer, they're creating
more housing and therefore it's a win.
Speaker 3 (11:10):
Well, this is where it's interesting, isn't it, Because it
depends what you look at and it is development's brilliant.
We need it, we need new builds, we need new
houses all the time. That's absolutely true. But then don't
unfairly say investors are driving the prices up and let's
sort of put the handbrake on with those when an
(11:31):
actual fact developers are driving the prices.
Speaker 1 (11:35):
Is there a way of them actually getting better data
on that sort of stuff, because when you're if you're
just looking at who's buying, I mean, actually, firstly, how
do they know who's buying a property? I mean, how
does that data actually accumulated?
Speaker 3 (11:47):
How do I assume that is accumulated an IRD number?
I don't know this for sure. It be really good
offenone someone does know. But when you buy a property,
of course, when you go to settle, you have to
give your IRD number one. So therefore, if you're a
personal buyer, you have a personal IRD number. If you're
an investor, you may have a company IRD number. If
you're a developer you also have one. But there's also
(12:07):
a difference in your taxable code. So a developer does
property for taxable gains and an investor doesn't, so you've
got different codes. So the IID must be able to
differentiate with that data, okay, and segregate those two types
of buyers.
Speaker 1 (12:22):
I guess I always think that makes it like it
sounds sense. Sorry, that sounds like it makes sense. But
sometimes I think we can attribute government departments with much
more dexterity than the fact they might have. But that
does make sense, doesn't it.
Speaker 3 (12:35):
Yeah, it makes sense.
Speaker 4 (12:36):
I mean.
Speaker 3 (12:37):
I always remember once chatting to a guy, Andrew King,
who for many many years ran He was the liaison
between the property investor associations and the government. And I
went to a fabulous guy and really new things inside out.
And I remember listening to him speak once when Healthy
Homes was thinking about coming in and we were asking
(13:00):
a lot of questions, and in the end he said, look,
the thing when it comes to the government is that
when they try to improve one thing, it's like this huge,
massive cloud, something else pops out the other side that's
affected whack a mole. And I thought that was a
really good point because the vast majority of us, myself included,
(13:20):
we don't understand the ins and outs of how a
politician makes a decision for the good of the whole country.
We only understand the portion that we are affected. Or
interested in and we comment on that. Hmm.
Speaker 1 (13:35):
Yeah, Actually that's an interesting philosophical point because I'm not
an investor, but I still have an opinion about investors
being not treated like they're the devil, because I believe
just generally in a free market more than government controlling things.
Because that's just my personal philosophy.
Speaker 3 (13:51):
The government need investors. Investors give something like it something
like seventy five and might be eighty five percent. I
forget the statistic. Now private investors provide something like seventy
to eighty percent of the housing for tenants, so they
need us.
Speaker 1 (14:03):
I think people forget that stat They don't realize how
much housing is actually provided by private investment. Mind you,
that's the whole point of view an economy. You can't
tax an economy that doesn't exist. Yeah, and the whole
that's the whole point. I mean, look, that's a philosophical discussion.
The reason, by the way, if you're listening eight hundred
eighty ten and eighty that we're talking about this is
(14:25):
that I should mention that it was based on an
article that Tony Alexander wrote, and it wasn't so much
to do with the price of new Zealand housing. Well,
it was it was about the relationship of key we
house prices to the average income. And here it is
nine times the average income. It used to be what.
Speaker 3 (14:44):
Four times or five times?
Speaker 1 (14:46):
And wouldn't you kill for those days? But here's is
it because our property prices are too high or because
our averag in comes guessing not as flash as some
other countries as well? What do you know?
Speaker 3 (15:00):
That is actually a very good question. And I did
read that article. It was very good.
Speaker 1 (15:06):
It's good.
Speaker 3 (15:07):
Yeah, yeah, yeah, no, I do, and I do think
Tony Alexander's are pretty you know, pretty good economist, obviously
one of the best. And it's an interesting question too,
because if you look at it as far as I
go out there and I look at buying property all
the time. I looked at a property down in Napier
the other day, and even the other day being Monday,
(15:30):
and even or was it Tuesday, and even down there,
I thought, okay, this particular property, three bedroom, one bathroom
house was six hundred and thirty thousand dollars and I thought,
oh my goodness, that's even that's expensive, even for Napier.
And it was a renovation, was a du up again,
six hundred and thirty they wanted, you know.
Speaker 1 (15:46):
Actually for an Auckland. I'm thinking that sounds like a bargain,
but that's just Chris and Oakland. We've got to climatize too,
you know, stuff a billion. You're suspicious.
Speaker 3 (15:55):
That's true. That's true, except for the fact it was
a due up, so it needed to have one hundred
thousand dollars spending on it, and then it wouldn't be
worth that anymore.
Speaker 1 (16:04):
Can you look at it? Do you look at a house?
Because you're an experienced property how do I describe you
an investor?
Speaker 3 (16:09):
Yeah, Alvester, Yeah, I.
Speaker 1 (16:11):
Mean if you do do ups. That's not so much
developing as investing, is it. Can you can you pick
a budget for a house when you walk in and
go let me ever look at that. It looks like
that needs doing. I need some new lining. Probably looks
at the pipes of bit stuffed new gutter's new roof. Okay,
that's twenty five fifty one hundred and twenty five grand,
let's go. Yes, are you quite quick at that?
Speaker 3 (16:29):
It can take me about five minutes. As you're a superpower,
I can picture the whole thing in my head. Finished
in five minutes as well?
Speaker 1 (16:35):
Wow, now is that because you've always been able to
do that or you've learned it through your course of investing?
Speaker 3 (16:41):
Like without putting my psychology head on which I have
studied psychology and NLP. I am a natural high visual anyway,
so naturally I make a picture inside my head. That's
the way I process information first. But that's so that's helpful. However,
being able to picture a property and know the prices,
that's come with experience.
Speaker 1 (17:01):
Okay, well, what are your CAUs on? This is New
Zealand just too expensive? When you look at other countries?
Have you actually done that exercise where you go on
to a real estate firm somewhere in another country and think,
I wonder what it costs to buy on that beautiful
Greek aisle or something, because I have done that and
I think I found some cheap stuff. But anyway, is
New Zealand too expensive? But if it is, does that
(17:25):
mean anything's going to change sometime soon? So Tony Alexander's
pointed out that the average property, sorry Keiwi house now
on average cost nine times the average income. Are we
too expensive? And does something else need to give? What
do you reckon give us a call on that. O
eight one hundred and eighty ten eighty. But if you
do think someone else, somewhere else is too expensive, have
you looked at other things such as well, the cliche
(17:49):
would be the Gold Coast. We might actually have a
chat about that when we come back. My guest is
Nicole Lewis's who's antennae picked up when I mentioned the
Gold Coast, so I think she might have some opinions
on that. Anyway. Nicole Lewis is our guess. She's the
author of Property Quadrants and it's basically your financial future
through real estate investing. It's a very digestible size. And
there's a new update at the publishers right now. I
(18:10):
just thought to mention that n cole Uh, we'll be
back in just a moment. The number is one hundred
eighteen eighty twenty five past four.
Speaker 5 (18:24):
Ain't a writing grip's right down?
Speaker 2 (18:30):
So Swart is done.
Speaker 5 (18:46):
I adjusts the moss and.
Speaker 1 (19:03):
Welcome back to News Talks it be. That is the
one roof radio show. I'm Tim Beverage. My guest is
Nicole Lewis, who's the CEO of the Property Lifestyle. She's
also a property investor with a lot of experience. In fact,
you may recall if you heard Nicole on my show
a few weeks ago, we talked a little bit about
your background because you basically had lost everything and you've
rebuilt it to being a big success, you know, being
(19:26):
happy with your life. That's a good way to actually,
that's probably a good way to describe it, Isn't it nice?
You know, because people always like, I've made this amount
of money. It's like, well, I'm happy with my life.
It's like bingo, you're winning so overseas if you're looking
at So the question we've got, by the way, is
why New Zealand house price is so expensive or less
accessible when you can compare it to the rest of
the world. It's based on a based on a bunch
(19:49):
of recons but also on Tony Alexander's piece. When property
prices are now nine times the average income, what markets
if people? Because there are New Zealanders who will either
look to buy in a different market or even I
don't mean different market in different terms of different countries,
because sometimes people might look to buy just to get
their foot in them on the ladder somewhere else, like
(20:11):
Napier rather than Auckland. But what about looking overseas? Have
you You've said you've looked at quite a few markets.
Does that mean you've you've bought and sold or you've
just sort of had a bit of a bit of
a look. See both.
Speaker 3 (20:24):
I've bought and sold in Australia. I've looked at buying
in America, looked at properly nearly very nearly, bought one
in Orlando. And I have also looked at property in
South Africa. Okay, not talking about that, but you know
also been there and I did years ago. I went
to the UK when we were when I was working
(20:46):
for Australia, so I still live New Zealand, but worked
in Australia and went to the UK to do the
Place in the Sun Expo selling Australian property in the
Gold Coast.
Speaker 2 (20:55):
Right.
Speaker 3 (20:56):
So I know a little bit about the ins and
outs of markets and multiple countries. And there's a lot
of contributing factors as well. Like America, for example, you
can lock your mortgage rate in for thirty years, so
when interest rates were super low post COVID two percent
thirty years woo fantastic.
Speaker 1 (21:16):
Does that mean you are bound to a thirty year
term or you can get out of it.
Speaker 3 (21:19):
Now, you can get out of it. It's like a
fixed rate. You know, we've got our fixed rates, but
there's as fixed rates for thirty so they don't give
you any penalty if you want to sell your house
and repay. But of course you can't refix at that
rate that you had.
Speaker 1 (21:32):
Oh hang on, so if you fix, sorry, just as
a mechanic mechanics thing on that. So if you buy
another house, can you still carry on that mortgage?
Speaker 3 (21:41):
No, you can't, which is interestingly enough, why the States
are currently at a thirteen year high of second home
buy is not buying.
Speaker 1 (21:49):
Because well, it costs them a lot to sell. So
it ends up that's a strange thing on the market too,
isn't it, Because it reduces supply pushes the prices up
correct at.
Speaker 3 (21:59):
The moment it has, which is why the States are
number one at the moment in the six countries I
looked at.
Speaker 1 (22:05):
So where if people say, for instance, A're looking at
the Gold Coast or Australia, what's your take on that?
As a mark?
Speaker 3 (22:12):
Okay, so Australia. Australia's got six territories or states as such,
and like America's got fifty and America's states all different,
so are Australia's. So Sydney being New South Wales is
one of the most expensive places, of course to buy,
and Queensland is a very popular place to buy. Lots
(22:33):
of developers sell offshore. But here's the interesting thing about
Australia is that most of Australia you can only resell
secondhand properties to Australians unless you have a state that's
if IRB approved, Foreign Investor Review Board approved.
Speaker 1 (22:50):
Does that exclude New Zealanders as well? It does to
Australians by here.
Speaker 3 (22:54):
You never used to New Zealanders could You still can?
But you have to buy a new build And they've
introduced an additional tax now for New Zealanders. Can't member
what it's called. But when you buy a proper but
in Australia you pay stamp duty when you settle. It's
not massive. It's about four four grand extra tack.
Speaker 1 (23:10):
I thought it was four percent. I thought it was
some sort of massive percent.
Speaker 3 (23:13):
It's but the new tax is big and I just
totally forget what the new tax is called. But when
I did the math on it, was going to cost.
New Zealanders used to be an exempt for it, we're
now not. And it's an additional seventy odd thousand dollars
on a nine hundred thousand dollar properties. It's big. And
then of course you've got CGT in Australia. Yeah, when
you go to sell.
Speaker 1 (23:32):
Do you have it on a family home as well?
Speaker 3 (23:34):
No, principal place of residence is exempt?
Speaker 1 (23:36):
Good?
Speaker 3 (23:37):
Yeah yeah, so but all your investments are of course
subject to CGT. So typically, here's what I learned when
I was buying and selling property in Australia. This was
before as a New Zealander I had to pay the
tax I was exempted. Now is that you go and
you buy. So the developers, especially in the Gold Coast,
they're doing high rises left, right and center. They sell
(23:58):
eighty percent of those offshore. So singapore Ians used to
buy a huge amount eighty percent offshore. And then of
course what have pins is that when those people go
to sell down the track, they can only sell to
Australian residents right, So therefore values drop. So in the
Gold Coast itself or Queensland, the rising value of properties
(24:20):
are very very slow. So I bought a property in Queensland,
in Hope Island when two thousand, two thousand and seven
it would have been back when everything was rising high
sold it now. I looked up, looked up last year
at Hope Island, that same apartment worth the exact same
(24:40):
money as what I paid all those years ago. So
capital gain and Queensland very very slow. And that's why
because unless you're in any fine you.
Speaker 1 (24:50):
Just want to place in the sun. I've actually a
lot of people, you know how one loves to sing
the propraises of Australia and they say, I can get
a house on the Gold Coast for X, Y and z.
But when you actually see what that property is and
where it is in this massive, repetitive sort of suburbia,
it's not necessary. Really, I don't know. I think that
it's sometimes overstated by people who've gone there and they'll
(25:11):
tell you about all the great things.
Speaker 3 (25:12):
It's like, well, I bought one. I bought a beautiful
apartment in the Gold Coast, loved it, used to go
over there every weekend, loved it. From an investment perspective,
was it worthwhile?
Speaker 1 (25:23):
No, it it was a lifestyle thing.
Speaker 3 (25:25):
It would have been better to have just hired, stayed
in a hotel and bought something else in New Zealand
because New Zealand's grown better.
Speaker 1 (25:31):
Right, let's take some calls. One hundred eighty ten eighty
is New Zealand over price? Actually, the bigger question philosophically
that we should probably get to is, if you do
think New Zealand's overpriced, does that tell you anything with
regards to how you view the New Zealand market here
today versus tomorrow, next year, five years. Do you think
that that has some bearing on what the market's going
to do? And we'll ask them Nicole that at the moment.
(25:52):
But let's take some calls.
Speaker 6 (25:53):
Peter Highday, how are you going right?
Speaker 1 (25:57):
Good things?
Speaker 2 (25:58):
Yeah?
Speaker 6 (26:00):
My questure news that I'm well, I'm rail told. But
we want to shut else better for retirement, so we
actually want to downsize. But my question is just for
a round figures, say in my place is worth about
two million, and I want to buy a place for
about maybe about one point five a new build for
(26:25):
about one point five, so would be a smaller house.
Got no problem with that, and the value of their
houses have got no problem with that. But the difference
what I am increasing is the difference of five hundred
thousand dollars. Now is that difference decain? For instance, in
(26:47):
five years time, I seld my place for three million dollars.
What would the.
Speaker 1 (26:55):
Oh you wanted to know if increases in property are
going to mean you're making more cash, if you're better
to hold on as long as possible? Is that a
way of answering asking you question.
Speaker 6 (27:05):
Because you want to check out to enjoy the rest
of their lives.
Speaker 1 (27:08):
Do you want the most chance you can get?
Speaker 3 (27:10):
Of course you do.
Speaker 1 (27:11):
Yeah, Okay, let's go to Nicole.
Speaker 3 (27:13):
It's a very good question. And the answer, of course,
as you'd be well aware, as the market is cyclical
and at the moment we've we had the bottom of
the market and now we're turning and it's slightly rising.
The thing is, it doesn't really matter where the market
is if you're buying and selling in the same market.
Speaker 1 (27:30):
So one may release a little bit more cash, I guess,
I guess. The question is if you've got a valuable house,
does the difference between that and the downsized house does
that get a bit bigger?
Speaker 4 (27:42):
Well?
Speaker 1 (27:42):
What are it like six hundred thousand dollars?
Speaker 3 (27:45):
Yeah, it's hard to know. It's maybe maybe not. Because
the other thing is, if you're talking about buying a
new build, the other question to go with that is
the price of construction going to go up or down?
Is a new build going to be more less expensive?
Whereas if you maybe didn't buy a new build that
brought something existing, potentially you could buy something that needs
a bit of work you could spin and that you
could renovate it before you move in from very minimal
(28:08):
money and pocket an extra couple of hundred thousand dollars.
Speaker 6 (28:12):
Yeah, that is true.
Speaker 1 (28:15):
Do you need I mean, is that something you need
to do straight away, Peter? Or have you got a
bit of time to think about homes?
Speaker 2 (28:20):
Oh?
Speaker 6 (28:21):
I think you're getting close to it for next year.
But see that what I want to do is moved
to a place, for instance, like over north Shore around
Fong of praor Milldale, Silverdale, all those places I'm particularly
interested in being involved with the community. And so over
(28:41):
there you get to thousands of homes. They do they
all these subdivisions, they do do have a central shopping center,
and Mildale particularly is going to have a very large
one which is going to bet restaurants, bars, you know, whatever,
not not just a supermarket. And that's the sort of
(29:02):
place that interests me is having neighbors walk. I'm in
a very spacious section at the moment, and I had
to see my neighbors unless I walk down to get
my rubbishin, so and that doesn't suit me anymore. I
wanted to live in a community where people should put
that and they say, oh, hi, Peter.
Speaker 2 (29:22):
How are you?
Speaker 1 (29:23):
I've got on your Peter. Well, actually, I guess see
there's another factory's considering, isn't it. I mean, I guess
the money is one thing, but buying on the right place.
So downsizing is a big question for everyone.
Speaker 3 (29:32):
For a lot of people, though, it's a very good question. Yeah.
Speaker 1 (29:35):
For some people it's their whole retirement fund.
Speaker 3 (29:37):
It is indeed right.
Speaker 1 (29:39):
We'll take another call on in just a moment. It
is twenty one minutes to five. This is the one
Rufradio show. My guest is Nicole Lewis. Will be back
in just to take and where are we up to
hand a second? Sorry, just caught me napping there. We
have got back to the one Rufradio Show. I was
having such a good conversation off here I forgot to
come back on here, Kelly.
Speaker 4 (29:57):
Hello, I'm just going to speak to Nicole about property Queensline.
If you've got a property in Queenslean, you pay tax
on it in the Queenslean state, Yes, right, lane tax
every year? Is that correct?
Speaker 3 (30:16):
That's right? Yes?
Speaker 4 (30:19):
Do they have rates on top of the land tax
or the rate is that the land tax?
Speaker 2 (30:25):
Oh?
Speaker 3 (30:25):
Now you see it's been a while since I've done
it now, because you've got both state and federal tax
in each state is different.
Speaker 4 (30:33):
So the thing that I was wondering about because I
was thinking about moving over to say Queenslan and either
find a property, but you've got to pay a land tax.
And if you've got a property in New Zealand, you've
got to pay tax on the one in New Zealand,
so don't you.
Speaker 3 (30:52):
Yes, if you become a resident of Australia, then your
New Zealand you switch your tax to Australia. Therefore, your
New Zealand properties become subject to Australian CGT when you sell.
So that's definitely something to.
Speaker 4 (31:06):
Be aware of that only when you sell, or each
year you get when you put on their tax.
Speaker 3 (31:10):
Reford Well, CGT is only payable when you sell in Australia.
So of course you'd still pay your rates in your
in New Zealand, and you pay your other taxes in Australia.
You don't have to pay stamp duty in New Zealand
only in Australia. But when you sell your New Zealand properties,
you have to pay Australian capital gains.
Speaker 1 (31:31):
Tax on it when you sell New Zealand's.
Speaker 3 (31:34):
Correct, because you become if you move to Australia and
become an Australian resident, you're now subject to Australia's tax regime,
which includes CGT on any properties in New Zealand.
Speaker 4 (31:45):
So what would the rate of the capital gains tax be?
Speaker 3 (31:50):
So CGT in Australia is income tax, so it goes
on the same income tax scale. So from memory, their
highest tax is thirty nine percent. So any capital gain
that puts your income over footing over into that high bracket,
you'd pay you thirty nine percent on which most of
the time and property you put there because you're getting
(32:12):
more than one hundred and eighty thousand dollars worth of
of from the capital game, I see stamp duty. Oh gosh,
I've got to remember, I think you are about four
or five percent. Actually, any questures if you.
Speaker 1 (32:26):
Moved to Australia, If you moved to Australia, your value
of your property here would be valued as when you moved,
wouldn't it not what you made from.
Speaker 3 (32:34):
Your value of your property goes from when you puts
it to when you sell it.
Speaker 1 (32:39):
Well, what I mean is say I live in New Zealand,
I moved to Australia. I've had my house in New
Zealand for twenty years, and then I can't get text
on all that profit because I've only just moved to Australia.
Wouldn't I just get text on the profit from when
I moved to Australia. But that's a textic thing and
you're not really here for those questions. In fact we won't,
but thanks for your call, Kelly. I do have a
question as to just the whole over valuation of New
(32:59):
Zealand or I use that loosely because the market's worth
what it's worth, right, But do you think that given
the international context, if we are you know, we've hearted
to borrow in and it's nine times the everage income,
do you think that we are still due for some corrections?
Just because of the comparisons with a national market or
is just nonsense.
Speaker 3 (33:20):
That's a very good question. Okay. So statistically, I've looked
at the New Zealand market over the last sixty years
and right up until the year two thousand we had
a steady growth. From two thousand to twenty fifteen, our
market increased by I think it's something like two hundred percent,
so it was the biggest growth period we had seen.
(33:42):
And then of course we had another big growth period
through to twenty twenty one, and now we've had a correction.
So are we going to have a correction? I don't know.
I mean the market is cyclical. Every thirty years we
have a major so yes, we'll have another major correction.
Speaker 1 (33:58):
Yeah. So TORII Still we're still slightly it feels just
before we go to the break. So I've done the
property show for a few years now and it felt
then I've said the Statuary Church last week, it felt
that there was a time and property where really the
only impediment to it was your own resistance and getting
your head around buying a property because it was almost
a no brainer. It felt like there was that vibe people.
(34:20):
I don't care it doesn't even matter if you do
your research. Just go and buy a house and somehow
you'd be all right, or you'd be incredibly all right.
It doesn't feel like that now. Is that a fair
sort of just guess of the vibe right now?
Speaker 3 (34:35):
I think I don't agree. I actually still think it's
good to buy a house and you'll be all right.
I think that if people are in buying their own
home that they're going to live in, it's an emotional
purchase and they tend to want to be in a
specific location. That is kind of off the table a
little bit. Now, if you're wanting to be a first
home buyer and you're wanting to buy in an expensive
(34:56):
part of Auckland, you might have to then look at
it more strategically and go and buy a property in
another part of the country. Because what I've seen in
the last six years when I looked at the sixty
year growth as New Zealand has consistently gone up. Will
it continue to I think so? But will we have
a cycle where we drop a huge proportion, Yes, definitely
(35:16):
if you can buy it in that cycle, brilliant.
Speaker 1 (35:21):
Drop because of the peak.
Speaker 3 (35:22):
But that peak was artificial, so correct I mean, we
can only ever pick peaks and troughs in hindsight. We
never quite can see exactly what's happening in the future.
We can guess, by the way.
Speaker 1 (35:30):
On the overseas market thing, I just for fun went
into zilo dot com, which is what market I've looked
at from time to time, and for fun, because it's
been in the news, I went and looked at Springfield, Ohio,
which is where that the legendary cat eating was going on.
And for six hundred thousand you can get a complete
mansion that is just brew well from New Zealand standards.
(35:53):
If it was in if it was in Victoria, av
it'd be about six seven mili here six hundred thousand dollars.
Boom us. By the way, so do you can versions.
We'll be back in a moment. It's eleven minutes to five. Yes,
(36:25):
welcome back to the One roof Radio Show. By the way,
we'll be wrapping the sharp shortly because we'll be taking
the commentary, so no parents squad. But my guest is
Nicole Lewis, and this is one roof radio show. And
guess what At eight minutes to five, the one roof
property of the week on the Weekend Collective. Yes, and
the one roof property of the week is quite It's
a nice accidental segue. I mean mentioned you could buy
(36:47):
that home in Springfield, Ohio for six hundred thousand dollars
in as a mansion. Well, actually this house here has
got quite a bit of bang for your buckets. Four
twenty to a botanical road west end Palmerston North City,
which ties in in so many ways because my guest,
Nicole Lewison, may be looking at a property in Palmston
North is South for a friend, and it is six
(37:10):
hundred thousand dollars. It's a very nice living property. It's
two hundred square two hundred and ten square meter home
perfect for growing families although seeking extra space. Upstairs three
generously sized bedrooms and a large bathroom that has recently
had a full renovation. And downstairs you can enjoy up
and planned living that seamlessly connects to summer ready outdoor
(37:32):
alfresco dining area. That always sounds good, doesn't it, Nicole?
Outdoor alfresco dining area. You've had a look at the property,
what did you make of it?
Speaker 3 (37:40):
Lovely, very very nice property and Palmerston North lots of
students there for Messa University. So another option to buy
is an investment and rent by room.
Speaker 1 (37:48):
Actually it is quite a bit of property considering we've
been talking about the Auckland market among other things. Okay,
I mentioned the mansion and Springfield are high for six
hundred thousand, it's probably about a million New Zealand six
hundred thousand bucks. Is that does seem like quite a
lot of a lot of house for your money, isn't it?
Speaker 3 (38:07):
It does actually look very nice.
Speaker 1 (38:08):
Yeah, So that is the one roof property of the
week for sorry four twenty two a Botanical Road, West
nd Parmiston, North City. If you want to have a
look at it, there's a video guide as well, and
you can take a lot all of the photos on
the one Roof website. That's one roof dot co dot
n Z. Well, that pretty much wraps it up. So
(38:31):
in terms of the news zip, I'm trying to think
of what other questions we've really got to go with
the with the property market. But I've got a few
texts here completely overpriced. Would never buy anything here ever? Again,
Happy to rent now are saving better? Even renting overseas
is so much better as well. Life's so unpredictable now
as well, not attached to owning any anything anymore. I
(38:53):
just tend to think if you can still own a house,
they wouldn't you say, Nicole, it it's good to own.
Speaker 3 (38:57):
I think so, especially when you look at your retirement.
Now you've you own something, You've got rent coming in
potentially that's income right throughout your retirement. Are living longer
these days?
Speaker 1 (39:06):
Hey, by the way, just while we're on it, of course,
the cost of money is always the big one, and
we've we've seen that the Federal Reserve has dropped its
interest rates. We've had data on we sort of have
avoided a technical recession, I think, or about our GDP
still not so flashed. Do you anticipate a bit of
a drop in interest rates in the next little while.
Speaker 3 (39:27):
So my little crystal ball on the property is I
think the property market will rise slightly in twenty twenty five,
and then we'll have a much bigger rise in twenty
twenty six. I think interest rates will come down from
for the next sort of two years or so, hopefully
hopefully they'll come down to three percent again. Then I'll
lock it in for five years hopefully around the sort
(39:50):
of mid fives to low fives by this time next year.
Speaker 1 (39:53):
Another text question which touches on what we discussed between
the two of us and the break, But who actually
evaluates RVs. We've got about a minute left. So this
person has a house with an RV of a million.
The last few houses a lot cheaper. It seems like
dot throwing a dart, says Chris, what do you reckon?
Speaker 3 (40:08):
It's computer generated, So basically, there's a big, big algorithm
that just looks at how much the land and the
houses are in your area, what they've sold for recently,
and calculates its magic numbers.
Speaker 1 (40:20):
Yeah, and it looks if you do have a problem
with your RV, of course, you know, do you like
the fact that you're about to sell and it's got
a higher RV than it should than? Maybe hang on
to it. But if you don't like it, you can
challenge the RV. Most councilors I think have a website
on their online they can go check it. Gosh, time flies, Nicole,
Thanks so much for joining us.
Speaker 3 (40:36):
Thank you for having me look.
Speaker 1 (40:37):
Forward to it again and stick around the voice of
Rugby Elliott Smith standing by for the All Blacks and
Wallabies Test match and we'll look forward to your company
again tomorrow same time. This is News Talk said B.
Go all back.
Speaker 5 (40:53):
For more from the weekend collective.
Speaker 1 (40:55):
Listen live to News Talk SEDB weekends from three pm,
or follow the podcast on iHeartRadio
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