July 13, 2024 • 41 mins
Westpac has dropped their home loan interest rates despite the OCR remaining at 5.5%. Property expert Andrew Nicol joins Tyler Adams to discuss where other banks may be headed.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks AB.
Speaker 2 (00:18):
You can see standeesisods.
Speaker 1 (00:27):
You can see.
Speaker 3 (00:29):
Standeespisode Welcome back into the week in Collective. Tyler Adams
filling in for Tim Beveridge the afternoon and it is
time for let me just turn off the zoom here
before we carry on. It is time of course for
the one roof radio show and were joined for the
first time by Andrew Nicole. He is the managing partner
(00:51):
of Op's Partners of Property Investment boom firm Rather and
co host of the very popular Property Academy podcast Heday. Andrew,
Nice to.
Speaker 2 (00:59):
See you, Hi, Hello, nice to be here.
Speaker 3 (01:02):
Very good. How is your Saturday afternoon going.
Speaker 2 (01:05):
It's been pretty crazy for as afternoon, I know. And
I've been having a look at some development sites that
some of the developers that were working with a building
at the moment.
Speaker 3 (01:15):
Fantastic. What about you based? Are you based in christ Church?
Speaker 2 (01:18):
I'm based in crash Church, but we've got office and
Orkland as well, so I kind of bounced between the
two depending on where I'm needed.
Speaker 3 (01:24):
Fantastic. Now I was doing a bit of reading up
about you, Andrew. You are a click to Revard. Is
that right?
Speaker 2 (01:30):
Yeah? Yeah, I quite like I like some art because
I'm not artistic and the slightest and I quite like
a bit of text and do me. So you're obviously
behind me at the moment. There's quite a few textas
doing pieces around my house. My partner was vegan when
we're through for me, so it was a bit shocking
for her walking into my house and seeing a bunch
of dead things.
Speaker 3 (01:47):
A little bit awkward. Yeah, what was your The favorite piece?
Was it half links, half goat?
Speaker 2 (01:53):
Uh?
Speaker 4 (01:53):
Yeah it was.
Speaker 2 (01:54):
There's a girl in Littleton that blends together animals, so
she'll find like a links and a goat and chat
or something like that, and she put them all together
and then I paid money for it.
Speaker 3 (02:05):
Fantastic, love it. Now, let's have a chat about the
ocr It remained unchanged earlier this week at five point
five percent, and I know there was hope out there.
Optimism wasn't quite the right word. Hope that they may
indicate that they're looking at cuts, perhaps not this round,
but certainly in the next couple of rounds. Were you
surprised that they held it at five point five or
(02:27):
that was pretty well indicated Yeah, Now.
Speaker 2 (02:30):
We were definitely expecting there wouldn't be any cuts either
later until later this year, early next year, at kind
of the latest, I think everyone was pretty much on
the same page that it was going to remain unchanged.
What they did do, though, is they signaled that there
would be rate cuts perhaps later on this year, and
that's definitely put a bit more confidence in the market,
(02:50):
and we saw Westpac react to that and reduce their
rates kind of the next day. And while the ocr is,
you know, it's kind of the most commonly discussed for
US rate that we see the headlines for, it takes
quite a long time for actual interest rates to follow
an interest rate cut. So if you look at the
increases or decreases particularly, it can take when we modeled
(03:12):
it out, up to eighteen months for the full effect
of that cut to actually be in line with what
we pay the bank for interest rates. And so the
most important thing for borrowers at the moment is, Okay, well,
we can see that there is going to be some
easing in the in the in the near future. There's
kind of light at the end of the tunnel. And
the swap rate, which is the one that we probably
(03:34):
don't talk much about. Is that that's the rate which
banks actually borrow money at or they'll exchange money at.
That dropped off a cliff basically after the Reserve banks announcements,
So the next day it plummeted ed. Our economist who's
been on your show plenty of times, sent me a
screenshot and he said, this is the happiest day of
my life. And then we saw Westpac cut their rates
(03:57):
later on that day. So I do think now we
are in a position where there is finally light at
the end of the tunnel for borrowers because let's face it,
interest rates suck at the moment.
Speaker 3 (04:08):
Yeah, but bottom line on that, do you think mortgage
holders need to stress out so much when they are
coming up for refixing? And a lot of mortgage holders
do stress cheap as do I go one, do I
go eighteen? Do I go six months? You know what
is the future going to hold? Reality? Is do they
need to stress out that much about it?
Speaker 2 (04:26):
Well, one thing, if people are stressing out, I always
recommend just splitting up your mortgage. So put a horse
in both racist So maybe split your mortgage in half.
Put someone six months, someone eighteen months, personally, I'd only
be fixing for no greater than one year. I guess
sometimes people want to pay a premium to have certainty.
(04:46):
So if you're really really restricted with your budget and
you've only got a certain amount of money that you
can contribute to your mortgage, maybe you kind of pay
that insurance premium and fix for a longer period of
time if you want the cheapest rate or the cheapest outcome.
That's not how I would recommend you go right now,
but probably be saying if you're really really concerned about it,
(05:07):
split your loan and doing in chunks.
Speaker 3 (05:10):
Yeah, what's the ideal scenario there? Would it be if
you split it into three and it rolls over every
six months? Is that kind of the ideal?
Speaker 2 (05:17):
I'd probably go ever a year if it were me,
just because of the admin. There's still some admin with
refixing your mortgage, and if you're forget that goes on
to floating that can be quite a lot higher than
the fixed rates. So if you want to kind of
a stagrip, maybe maybe you do a six month, maybe
a one year, maybe an eighteen month. At the moment,
because interest rates are certainly looking like they're going to
(05:38):
drop over that period of time. In a more normal market,
you might go one year, two year, three year.
Speaker 3 (05:44):
Yeah, fantastic. If you've got a question for Andrew, now
is your chance. Oh, eight hundred and eighty ten eighty
is the number to call, and you can text through
nine two, nine to two, And it pays to get
in as early as you can because it's always popular
and the text questions have already come through Andrew. This
one from anonymous Ask Hi Andrew. I'm a first home
(06:04):
buyer and struggling with the market in Wellington at the moment.
Very difficult to determine what sort of offer I should
make for the properties that I'm seeing. Any advice please
on getting a market value in the current climate.
Speaker 2 (06:20):
Yeah. So I like to use tools like homes dot
co dot nz, but you can't hang your hat on it.
You don't want to use those online tools or Velocity
or Logic run those tools and go right. That has
to be the price I've got to pay, because the
last thing you want to do is a first time
buyer is miss out on a property and then just
be sitting on the sideline for the next three years.
(06:41):
One of the real challenges for first time buyers at
the moment, is that as interest rates ease and debtor
income ratios become effective, because they are not effective at
the moment, even though they're here, you might not be
able to actually borrow as much money from the bank,
so you might not be able to buy the house
that you want. And so you've got I'm not saying Russian,
but certainly consider the fact that you don't want to
(07:03):
get to a point where all of us and you
can't buy the house that you want. Buying your first
house is always a hard one because it's the first
time you've done it, it's a huge amount of money,
is probably the most expensive transaction you're going to make
in your life, and so we tend to we tend
to overthink it quite a lot. But as we move forward,
you know, five years from now, whatever price you pay
(07:25):
is probably going to seem cheap, so when you when
you're looking back, So I'm all about making sure that
it's affordable for you. So that I think one of
the challenges that first time buyers that I've worked with
have faced is they want the property that their parents
had now and that's maybe just a generational thing. And
so now we probably we often spend a bit more
(07:47):
money than probably optimum, I get something much more affordable,
and then I'd be thinking about kind of using this
as your stepping stone. So I guess that's probably a
long winded way of saying to use some of the
online tools if you kind of want to get a
guide for price. The good thing about the well into
market is it's dropped so much over the last few
years as the peak of the market that there are
(08:09):
some really good deals to be had. And if you're
buying it for your own home, yeah, you're what You're
not so worried about what the market does over the
next we Well, but I don't see there's going to
be any more drops and prices there.
Speaker 3 (08:19):
Yeah, fantastic advice. And I remember when we bought our property,
first property, and I was stressing out over ten thousand dollars,
you know, I thought we'd overpaid by ten thousand dollars.
Of course, looking back, I mean, who cares. It didn't
matter at the end of the day, and it didn't
actually add that much more to the mortgage. So stressing
out about those details ended up being the wrong strategy
for us as first time Buyas another text, says I
(08:42):
and Trew. We are coming up for refixing in August.
The whole mortgage is coming up for refixing. How easy
is it to split into multiples? Do I need to
talk to a broker? That's from Michael.
Speaker 2 (08:58):
That's pretty straightforward. I think the banks will that you
can't do that on your online at nowadays, but you
do have to contact the bank. It's relatively easy to
do that through the one hundred numbers now because we've
got so fewer branches now, they're making it easier and
easier to do things online. You shouldn't have to go
through a whole new credit application. You only have to
(09:21):
do that if you're increasing the mortgage or you're asking
to extend interest only, which it's your own house. That's
highly improbable. So it should be a very very straightforward
thing to do. You don't have to use a broker.
I'm all about using mortgage broker because someone else is
going to do all the heavy lifting for you if
there is any heavy lifting. But you could just do
that straight with the bank.
Speaker 3 (09:42):
Just on the broker question. And there's been some not concern,
but a bit of discussion around how you pick the
right broker. And how you know you've got a broker
that is actually working in your best interest and looking
around for the best deal. How do you know that?
Yet there's a lot of trust involved in that relationship,
isn't there?
Speaker 5 (10:02):
Yeah?
Speaker 2 (10:02):
Absolutely, because brokers are paid by the bank, and so
they are incentivized to get you money from the bank.
So there is a potential bias that a broker is
going to say, right, you're actually going to get a
much better deal at B and ZED and you're with Westpax,
I'm going to move you to B and Z will
set you up there, and then they get paid for
your full mortgage, whereas if they just do the fixing
(10:23):
at your existing bank, they get paid a noomenal thing.
It might be a couple of one hundred dollars one
hundred and fifty dollars. Now, I would always go on
a recommendation when it comes to mortgage brokers. We wrote
an article and we rank top brokers in New Zealand.
So if you type top mortgage brokers in New Zealand,
we put some of the people that we think are
the best of the best. Some how brokers are paid
(10:44):
can differ from company to company, so most brokers will
be paid just a straight commission from the bank, and
certainly that's how the firms all get paid. But some businesses,
as for example, Spirrel are a great example. They pay
their brokers a salary, so there's no incentive for them
to take your mortgage somewhere else and do the wrong thing. Now,
I like to take NNX Broker that most brokers out
(11:06):
there do the right thing by their customers. I know
there are going to be some people that would be
going to just do the right thing for their back pocket,
but I think now that with the t with the
tighter financial market, I think that we've weeded out a
bunch of a bunch of those people. So most of
the time you're going to get someone that's going to
work for you, but go on recommendation.
Speaker 3 (11:26):
Yeah, banks have come out and not specific people within
those banks, but say you don't need the broker, you
can come straight to us and we'll give you the
best deal. Of course they're going to say that, but
there is there some truth to that or the value
of the broker clearly is you know how the system works.
You know when the bank might be trying to pull
a fast one, and you can you can call them
out on.
Speaker 2 (11:45):
That, you know. I actually think the benefit of using
a broker isn't to get the best rate necessarily or
the best pricing. You will probably get the same if
you go into the bank and you negotiate yourself, but
the problem is you don't have any point of reference.
So a broker might say, hey, I just got you know,
sex point sixty nine B and Z for one year
fix and I've got a four thousand dollar cash back
(12:07):
for someone that refinance. We can try and get that
for you again. Again, if you go into your back
at wish Pac, you don't know that they're giving you
the best deal straight off the bat, but obviously if
they can. If wis Pack, your bank can do your mortgage,
and that not to put on respect by the way,
the right that pack whish Pac, if they don't have
to pay a broker to do the job that you
(12:28):
know they can do themselves, then obviously there's a benefit
for them doing it. I actually think though, the big
benefit of using a broker is a round structure. So
one of the things that I met with someone only
just last week and they had a four hundred thousand
dollars mortgage can well take. And they had two hundred
thousand dollars in the back, and they'd received some inheritance
(12:49):
and they didn't want to pay it off the mortgage,
which I completely get right. They want to actually feel
like they've got they've got cash on the bank in
case something comes up. Now their bank hadn't spoken to
them about a thing called an offset mortgage or maybe
a revolving credit for solity, a way of reducing significantly
the amount of interest that they're going to pay. They'd
put it in a term deposit, which is a stupid thing
(13:12):
to do because they're going to they might earn five
percent on that money, but they're going to pay seven
percent to the bank, so they're losing two percent to
have that money and then term deposit plus the tax
that they're going to pay on their earnings that they
make from that tourm deposit. So sometimes it just takes
a broker to say, hey, look, we understand mortgages, that's
our specialty. What about these kind of things to make
(13:33):
sure that you're paying a few more just stars as
possible and paying as little interest as possible. It's not
just about that interest rate.
Speaker 3 (13:39):
Yeah, a financial advisor as well as a broker. There
Andrew text here from Rachel She asks, I need to
fix in October. Do you think other banks will drop
their rates or is it a good idea to swap
to WHISPAC.
Speaker 2 (13:53):
I think that what often happens is one bank will
lead the charge with interest rates and every dog has
its day when it comes to that, and then other banks,
even if they don't reduce their interest rate publicly, they
will compete. And so again that's where sometimes using a
broker is a great idea because they might say to
your bank, hey, Whispeccer doing this? I want you to
(14:14):
be able to do that or even better, because again
the list price, the price that's on the shelf isn't
necessarily what you end up paying with the bank. Right now,
they've discounted quite heavily west Peccad, and chances are there
won't be a lot of discounting over and above the
interest rate that they're advertising. But other banks might have
higher interest rates, but discount are the same, or even
(14:36):
sometimes we find that another bank that has a higher
advertising interest rate will actually give you a better interest
rate because they want your business or they want to
retain your business. Often often banks will give you a
really good deal to keep your business. I remember I
worked at the Bends like twenty years ago, and I
remember being told whether or not this is still true,
(14:59):
but back then it would cost two and a half
times the amount of lending to get a balance to
balance off if we lost some money. So if we
lose a million dollars with the lending, we've got to
write two and a half to break even. So surely
banks then will want to keep your business, particularly if
you have good customer and you've got lots of different
products with them, and just on that.
Speaker 3 (15:20):
Is there more lucrative offers in the market now? I mean,
clearly we've talked a lot about WESPEC because they did
lower that one year rate to the lowest in the country,
and you'd hope some of the other big banks follow suit.
But I'm talking about cash offers. If you change your
mortgage to us, we'll give you one percent of the
size of the loan, et cetera, et cetera. They've come
back into the market, haven't they, And they weren't there
for a long time.
Speaker 2 (15:41):
Yeah, banks are definitely because there are least transactions happening
right now because interest rates suck and we're kind of
sitting on our hands a bit, and as a result,
banks have to try and incentivize business from other banks,
and so the way you do that is your gibbucks.
So it might be a cash back. The cash backs
are really good because if you're moving your mortgage, that
is going to cost your money. It's probably going to
(16:02):
cost you a couple of thousand dollars in legal face.
So if you kind of get if you're going to
get four thousand back from the bank, you're going to
be able to pocket two thousand dollars. You're just going
to be really careful though, because those cash backs do
have some caveats with them. So if you refinance your
mortgage or pay back your mortgage within usually a couple
of years, maybe three years, you have to pay that
cash back back to the bank. So you don't want
(16:25):
to get into a position where you lock them with
a bank that you know they don't sue all your
other needs. So maybe they didn't have a particular product
that you wanted, like for example, offset, and you use
them for a year because they had the lowest interest
and then they didn't have the lowest interest train in
the year's time.
Speaker 5 (16:41):
And you think, all right, I'm going to go to
A and Z. Now, well, A and Z might.
Speaker 2 (16:46):
Give you a cash back, but then you're going to
have to pay back the band that you've refinanced too,
so there can be some freshocks. You're going to read
the small print.
Speaker 3 (16:52):
There a lot of Edmund. Yeah, Now the calls are
lining up along with the texts. If you've got a
question for Andrew, Oh, eight hundred and eighty ten eighty
is the number of call. We'll take a quick break
and get to some of those phone calls. It is
the One Roof Radio Show and twenty three past four
backfree shortly here on New Storks EDB welcome back into
(17:13):
the wee Can Collective f and the One Roof Radio Show.
And we're joined by Andrew Nickel. He is managing partner
of Opes are partners. They are property investment experts. If
you've got a question for Andrew, now is your opportunity
free advice, which is always a good thing.
Speaker 2 (17:27):
Let's go to the phones. Todd, how are you?
Speaker 6 (17:30):
Yeah, good mate.
Speaker 7 (17:31):
I'm a mobile mortgage manager for one of the main
banks for the last twenty two years and I was
sort of listening to part of it just come back
from Rugby. But mate, I think people push the brokers
too much, and you know, the banks we don't get commissioned,
so we do get minus advice and we can approve
on our own back very quickly up to ninety percent
(17:54):
and then step high in ninety five percent per sessame bias.
But our services a lot quicker and we people there
are paid commission. There is that chance and we've seen
a lot of it in Australia where they take the
business away from a bank after three or four years
because they're going to get more commissioned. So you know,
(18:16):
I would say, you know, my passion is helping people
into their homes and sorting out in their mortgage. I
get them all this advice, but I don't get any commission.
And you know, and I'm a lot quicker. We do
prayer approvals, so you know, I'm not four brokers. You
(18:36):
can get Justin's got a deal straight from the bank.
But I say, you know, there isn't so much experience
there now as there used to be. But there are
guys like In myself, but been there twenty two years
with the same company and we kicked the brokers to death.
Speaker 3 (18:51):
Yep, well you've begged yourself very well, there, Todd. We'll
just get Andrew's response to there, Yeah, Todd that.
Speaker 2 (18:57):
I completely agree that mobile mortgage managers absolutely had their place.
I am. One of my good friends is Tony Mounts
is kind of the original.
Speaker 5 (19:08):
Mortgage broker, my oile mortgage.
Speaker 2 (19:10):
Manager in New Zealand and is now a broker. One
of the things that he said when he left the
bank be and Z maybe ten years ago, he said,
what I didn't realize is I had one particular way
of doing things, and I didn't realize all these other
products that other banks had until I went out and
(19:31):
was forced to learn them. So whilst I completely appreciate
that if you've got twenty two years of experience with
a particular lender, you're going to be absolutely an expert,
I don't think you find that all the time with
mobile mortgage managers. And I know that sometimes just because
of a lack of our staff nowadays, it can be
quite a lot harder to get people has experienced as you.
(19:53):
But again without being without being impolite, you're a one
trick pony in the sense that you know one bank's
policies and one bank's product. Sometimes people want to see
what all the offerings are. I completely agreed. So when
you say that there are brokers out there that will
tune business, they'll take you from bank to bank, I
think that people nowadays are coddling on to that kind
(20:13):
of behavior. Certainly, I am an insurance broker that did
that kind of thing, and I thought, well that I'm
not going to have that. I'm not going to have
no business taken around just so that you get paid again,
and I find them. I think we're pretty savvy nowadays,
and if we think that someone's not working for us,
we're open to firing them.
Speaker 4 (20:29):
Yeah.
Speaker 3 (20:29):
Nice, nicely, said and Todd. I mean, clearly, your customers
have rave reviews about what you do for them, and
that's that's what it comes down to, right And to
Andrew's point, I've fired a broker before because he wasn't
doing enough for us. I didn't think he was kind
of a little bit too laid back and didn't seem
to understand our situation. So clearly, if you've got someone
(20:50):
like you who understands your client situation, you've got a
broker who's doing the same thing. That's what it comes
down to in the end.
Speaker 4 (20:56):
Right, Yeah, for sure.
Speaker 7 (20:58):
Like I take great pleasure in dealing with my clients
there and their kids, so dealt with many of that
many many years ago as the country wide events started
the mobile manager chain and I was with them. But yeah,
now I'm for going direct to the bank. You know,
when you've got commission involved. It's just human nature.
Speaker 3 (21:22):
Yeah, fair enough, nicely, said Todd. Sorry to wrap that
up there. We've just got lots of calls to get to. Mike.
You're on with Andrew. How are you.
Speaker 4 (21:32):
Cool?
Speaker 2 (21:33):
Hello?
Speaker 3 (21:34):
Yeah, you get Mike, You're.
Speaker 8 (21:35):
On, yep, good bye Andrew.
Speaker 2 (21:38):
Hi, Mike, how are you good?
Speaker 4 (21:40):
Mate?
Speaker 8 (21:41):
Listen, my home line comes off at the end of
the month. I've got two hundred, but around two hundred
to pay, and I assume they would just be paying
mostly interest. So I'm just thinking how I can refix
and I want to sort of put maybe you know,
if I can put an extra put the money each
(22:03):
month into it, like float half of it or fix
half of it, or.
Speaker 2 (22:11):
The way I would do it if I were you,
as I would, I would figure out what the extra
I could pay over the course of the years and
then I'd set myself a challenge. So so for example,
you said, okay, I can do another five hundred dollars
a week. I think for example, that works out to
be twenty five thousand dollars a year. I would I
would float thirty thousand as a revolving credit or an
(22:33):
offset loan, and then I would put my five hundred
dollars diligently into that account every week, and in any
suit plus that you've got, you can add that to
the revolving credit to try and reduce that amount, and
then I'd fix the balance of your loan, so the
one hundred and seventy thousand, I'd fix that for one year,
and then at the end of the twelve months, i'd
see how I performed, and if i'd if I'd accidentally
(22:55):
had to take a little bit of money out because
the car needed to merge it repairs, and I only
had twenty seven thousand dollars and my revolving credit that
I paid off, I'd take that twenty seven and I'd
do a up some payment off my mortgage, the one
you're fixed line, and then I'd fix that for another year,
and I'd do the same thing again i'd rinse and repeat.
If you find that you pay your revolving credit off completely,
(23:16):
then you want to set yourself a bigger challenge for
next year. You want to make it forty thousand dollars.
Speaker 5 (23:21):
And the great thing about a revolving credit or.
Speaker 2 (23:23):
An offset is you can be brave with the amount
that you put in there over and above your payments
to your normal mortgage because you can access it again. Now,
if any listeners are listening to this and thinking, oh, yeah,
I'm going to do that, but you're the type of
person that's going to get tempted to take that money
back out and spend it on a jet ski, for example,
then don't use a revolving credit. Just increase your payments
(23:45):
and make sure that they're manageable because you're committing to
them for the next year. But if you sound like
a sensible guy, I would be thinking about how much
extra I can pay above my minimum payments, and I'd
be putting it into the revolving credit.
Speaker 8 (23:58):
Yeah, okay, all right, brilliant.
Speaker 3 (24:00):
Thanks nice one, Mike, Thank you very much to be
calling up. Now, let's get to some of these because
we've got a lot here to get through. Andrew afternoon, Andrew,
your thoughts please on two people siblings using each of
their key, we savor to purchase a home one home.
Is this a feasible option? They are both an employment
from clear.
Speaker 2 (24:20):
Yeah. I think getting into a partnership is how I
started them. Property. So my first of a property that
I bought, I bought with a girlfriend. I'd say a
ten thousand dollar deposit. She's saved up a five thousand
dollar deposit, and we put our fifteen thousand dollars together
and we went out and bought a house. Now, siblings, partners, friends, whatever,
(24:41):
you want to make sure that you've got a partner
that you can trust. Obviously, fest of all, if it's
a sibling, that should be fine. But they do say
fashion friends go off and fashion family go off in
three days. So you do have to make sure that
you've got an exit strategy if something goes wrong. So
let's say you go, right, I'm going to partner up
with my sibling. We're going to buy this property. What
I would do is I'd sit down and think about, Okay,
(25:02):
what happens if one of us do science they want
to leave that property in three years time? For example,
and I say that thinking about some of my clients
in Auckland. They partnering up siblings just like you. They
bought a property and then she ended up meeting a
guy and moving in with him. Now to cover her
part of the mortgage, she put in roommates, and the
(25:25):
brother didn't like the roommates, and then it became a
bit of a problem. So you do want to have
those conversations early on, regardless of the nature of the partnership,
be it romantic or family or friends, so that you know, okay, well,
if there's a change in circumstances, what happens. Does someone
buy me out of my share of the property, how
will I value the property in that instance? Who's covering
(25:47):
the mortgage in the event that one person leaves, all
those kinds of things. But I do think partnerships are
a great way to get into the property game. And
I still invest with friends all the time, So yeah,
I think it's a great idea.
Speaker 3 (26:02):
And in terms of those legalacies and how you see
it work out of things don't quite go to plan,
that's pretty easy for a lawyer to write that up
for you. Whether it's tenants and common or joint tenants,
whatever it may be pretty I suppose the extra cost
to employ a lawyer to do that as well with.
Speaker 2 (26:18):
It absolutely, I think the best thing you can do
before you actually go to a lawyer with that is
outline how you see it working to begin with. So
in my answerence with that ex Gilfrid, we said, in
the event that we split, we did spoiler alert, we
will sell the property, we will take our deposits out,
and then we'll split the difference fifty to fifty. Now
(26:39):
you might do it a different way. You might say, okay,
well Andrew put in a higher deposit, so he takes
a higher percentage. Normally I say, just do everything fifty
to fifty other than the deposit, and just say an
event we sell the property, we split the we take
back our initial input, and then we split the profit
or lost fifty to fifty.
Speaker 3 (26:56):
Yeah, very good. Now, Clear's just come back and that's
great advice for a lot of people listening out there.
But she just mentioned it's a first home for both
of them. And I know there are some legal complications
of getting the Kiwi saver out, but for two people's siblings,
would they be able to get both of those Keywi
savers out for a deposit.
Speaker 2 (27:15):
Yeah, there's no issue with that. You can absolutely get
probably so long as you give yourself out as long
as you've been in there for three consecutive years, so
you have to have built up some money over that time.
You can't take out the initial one thousand dollars grant
that the government put it if you've got that, so
normally they'll leave you a thousand dollars in there, but
anything over and above that, as long as you qualify
(27:36):
because you've been putting them for three consecutive years, that's fine.
Speaker 3 (27:39):
That's great. Just on the shutting down of the home
start grant, do you think that's going to have much
of an impact on the first time buyermarket?
Speaker 2 (27:48):
Yeah, I think it will. I remember actually, I think
it was on this show and some people were calling up.
I think it will have an immediate shock to the
shock to the to the market because there were people
that there will be people that were sitting on the
fence waiting for the bottom of the market.
Speaker 5 (28:05):
I think for interest us to recover and now they can't.
Speaker 2 (28:08):
Afford it into the market because it could be ten
thousand dollars for a couple up to twenty thousand dollars
if people were buying new properties, so as a couple
you get five or ten thousand dollars at each so
a twenty thousand dollars had or a ten thousand dollars
hat depending on what you're buying. It's pretty significant nowadays
with a deposit, So it might mean that people are
not buying for the next sex twelve months while they
(28:29):
save up that extra money, and then of course the
challenges off the market goes up over the next six
to twelve months, then you're going to save a little
bit more.
Speaker 3 (28:36):
Yeah, yeah, absolutely right. We've got to take a break
and we'll get to more of your calls and texts
very shortly. It is the one roof radio show, and
you're listening to new storms. There be twenty two minutes
to five bag very shortly. Good Afternoon. We are joined
by Andrew Nichol. He's the managing partner of Opes Partners,
a property investment firm, and also co host of the
very popular Property Academy podcast. If you've got a question
(28:58):
for Andrew, now is your chance. O eight one hundred
and eighty ten eighty is the number to call Andrew.
Good afternoon, Hello.
Speaker 4 (29:06):
Andrew as Andrew speaking.
Speaker 2 (29:09):
Oh hello, sorry, nice.
Speaker 4 (29:14):
Good names. Yeah, yeah, I always just wondering, really, how.
Speaker 6 (29:20):
Do you you know, probably for me is a long
term investment, but how do you factor in all the
outside things to actually you know? Then said it and say, well, okay,
(29:42):
here's an investment versus another investment.
Speaker 3 (29:46):
You're talking about property versus another another type of investment.
Speaker 4 (29:50):
Yeah, just yeah, I mean you could just okay, just
let's take an example, for example, just the index value
of the n z X fifty.
Speaker 3 (30:05):
Yep, Andrew, you pick that up.
Speaker 5 (30:09):
Yeah, okay.
Speaker 2 (30:09):
So I think the number one benefit of a property
over other asset classes is the ability to borrow money
for it, so leverage. So if you were to take
up so you had one hundred thousand dollars to invest
in anything, you can put it on the bank and
you might get net three percent, So you make three
thousand dollars. You take that one hundred thousand, put it
into a managed fun you might make five percent. You
(30:31):
put it in shears and you might make ten percent,
so you get ten thousand dollars. That's all great, And
property won't give you a ten percent return year on year.
It might get you more like a five percent return
year on year. But the difference with property is that
one hundred thousand dollars isn't what you buy a houseboard.
You take that and that's your deposit. That could be
your twenty percent deposit for example, and you go and
(30:52):
buy a property with five hundred thousands. Now, if you
get a five percent growth on a five hundred thousand
dollar property, that's twenty five thousand dollars worth of grow.
So you've got a twenty five thousand dollars return on
one hundred thousand dollars that you have invested, because the
bank invested the four one hundred thousand. Now there's a
whole lot more considerations. You've still got to consider the
cash flow and my topping it up, which most people
(31:13):
are nowadays. There are some other risks with property over
other things like tenants. Things can go wrong, You're going
to ensure the property, the government might make changes, so
there are a whole lot of moving parts. But I
think the number one benefit when I look at property
is hey, I don't have to do it with all
of my own money. And that's how I got started
on such a little amount of money, like fifteen thousand dollars. Yeah,
(31:35):
it was a lot for me back when I bought
my first rental property when I was nineteen.
Speaker 5 (31:38):
But you know, you think about well, I went and order.
Speaker 2 (31:42):
Two hundred thousand dollars property because you could borrow it
ninety five percent back then, Like I had a two
hundred thousand dollar asset going up in value, I couldn't
have put two hundred thousand dollars in years because it
had taken me a year and saved my ten thousand
dollars deposit.
Speaker 3 (31:55):
Yeah, it's a good point. The bank isn't going to
lend you five hundred thousand dollars for the s and
P five hundred Andrew caller, Andrew, thank you very much
for that. Rinda, you're on with Andrew.
Speaker 9 (32:05):
Hey, My question is APO keeps going mount to the
target date of.
Speaker 10 (32:16):
What the interest it's going to be? Like the features like, oh.
Speaker 3 (32:22):
Your phone line is terrible, Verrenda, But I I hope
I've got the question right here, is that if inflation
keeps going up, what will happen to the interest rate?
Is that the just yes, Andrew, was.
Speaker 2 (32:33):
The question was the question when interest rates inflation comes down,
what will it do going up.
Speaker 5 (32:39):
No, no, no, so what how much it's gonna go down?
Like if it's.
Speaker 2 (32:46):
Yeah, sure so so interest rates have been tracking down
for a long period of time. Now, the long term
average we kind of work on as around four and
a half five percent for an actual interest rate. So
if tag, if inflation is within it's target of one
to three percent i e. Two, then I think you're
probably going to see interest rates in the kind of
(33:07):
four to five percent mark. So that'll be a lot
more comfortable for a lot of people. We're not going
to get there overnight, don't get me wrong. And we're
not going to sit at four and a half which
is the long term average for a long duration. Sometimes
it might be closer to four. Sometimes we may be
closer to five, and it might be over. If you're
doing forecasting, i'd recommend you know, you maybe do a
(33:29):
five percent is a long term but I wouldn't be
relying on that for the next five years.
Speaker 3 (33:34):
What are banks stress testing out at the moment, do
you know? Andrews?
Speaker 2 (33:37):
Yeah, and so your stress test so you're servicing test rates.
So whatever interest rate the bank's going to charge, you
might say, how I can afford the mortgage at a
seven percent interest rate of this today, but the banks
are going to stress test you at about a nine percent,
so they had a margin on there. Now at the
moment because of that, with the dties coming out and
(33:58):
the dtaen come ratio restrictions, we can still borrow the
same amount of money we can now as so those
DTI limits coming in have had zero actual impact on
people's ability to borrow. When interest rates get down to
five percent, for example, all of a sudden, now we
might be stress testing let's say seven percent, and those
(34:20):
DTIs will really have an effect. So now you're going
to have different layers of assessment. You have to have
the sufficient deposit, you'll have to be able to meet
cash flow, but then you'll have the DTI test as well,
which will limit the amount you can borrow.
Speaker 3 (34:33):
Yep for Renda, Yep, that sounds good.
Speaker 10 (34:36):
Yeah, that sounds good.
Speaker 3 (34:37):
Thanks very nice, Thank you very much for calling up.
We'll get Halgrim before the air break it a helga.
Speaker 9 (34:43):
Oh, hello, how are you?
Speaker 3 (34:45):
I'm good? Andrews standing by for your question.
Speaker 9 (34:49):
I've got a different type of question. I've got ks
and omis go to buy a six hundred stalls and
seventy thousand for the car park, not stand alone, but
three whole units. And I was wondering, like you have
(35:13):
to not a body call, but they have a thing
where you pay, you join like a resident society and
you pay two thousand and four hundred a year for
where the car park to be cleaned up in other
areas like that. But I thought, if I bought that,
like it's an evandale area, very new, how long before
(35:35):
I could sell this? Again?
Speaker 3 (35:37):
Oh, great question.
Speaker 2 (35:39):
Yeah, that's a tough one. So the thing that you're
talking about, the residence association, it's basically like a watered
down body corporate, and often they will have the insurance
included in that, so insurance and some of amazonance those
common areas. How long to sell it is a hard one.
I always say the best time time property as long
(36:03):
as possible, So you don't want to sell it a
couple of years, have it go up, say fifty thousand dollars,
but then pay a lot of that to a real
estate agent and then only end up making a little
bit of money. If you hold that property for more
than two years, then you're going to be outside of
the bright line test. So the first thing you'd want
to do is make sure you're outside of the brightline test,
(36:25):
because if you sell it within two years, any profit
that you make is going to be taxed. So the
minimum would be two years. But I've been saying, well
as long as possible, But it depends what you're buying
it for. And this is where're talking to a financial
advisor and your place is probably worthwhile because if you're
buying this property to provide you with some cash, then okay,
(36:47):
well you might say, well, I don't need that cash
for five years, So what does that look like? You
sound like you might be a little bit older. So
I would have thought that the right buy for you
is something that generates you really high income. You might
compromise a little bit on capital growth to get significant
income off that property because you could live on that
week to week. For example, if you've got cash, then
(37:08):
you're not paying all of that rent to the bank.
Speaker 9 (37:12):
Yeah, I was actually going to live it up myself.
Speaker 2 (37:16):
Oh you're going to live in it yourself. Oh in
that case, really, it just comes down to when you
actually need the.
Speaker 5 (37:22):
Money back out.
Speaker 2 (37:24):
But you won't be subject to the bright line if
you're living in that owner occupied property as an exempt.
Speaker 3 (37:29):
Fantastic go well helga a best of luck. We've got
to take a break. It is ten minutes to five
pack three shortly here on the Weekend Collective and the
one Roof radio show.
Speaker 1 (37:41):
The one roof property of the Week on the Weekend Collective.
Speaker 3 (37:46):
Yes, the one roof Property of the Week this week
is thirty five Plunket Street, Calbourn, Wellington City. It's a
three bedroom, one bathroom, one off street parking property, last
sold for one point two million dollars, now valued at
two million. Constructed in early nineteen hundred's, this home has
maintained many of its period features while being upgraded for
(38:06):
today's living. Just a short walk from Calbourn Village, the
home is single level and easy to access, with detailed ceilings,
gorgeous views and hardwood floors. That sounds good, doesn't it.
You'll get all of the beauty of a period home
with all the modern day luxuries and Calbourn Andrew. That's
a pretty good location in Wellington City, isn't it.
Speaker 2 (38:25):
Yeah? Great location. I think I strugg We had almost
open capital growth roats.
Speaker 3 (38:29):
Yeah, absolutely right, We've got time for one more cool
sha fake Thanks for hanging on now. Bear in mind
we've only got about a minute thirty, so you get
your question in there quick.
Speaker 10 (38:39):
Okay, Hi Andrew, thank you very much. I'm a big
fan of you, watching a lot of few videos. I
have got a lot of my savings, more than one
hundred and fifty thousand. I've been sitting on it for
more than a year. I've been viewing many properties. There'll
usually be some issues, probably New Zealand state homes around
and for this, for other technical reason, I will be
(39:01):
leaving that property. So I really don't know where to
start from.
Speaker 2 (39:06):
That's always hard, and I think that, particularly when we've
saved a significant amount, like one hundred and fifty thousand dollars,
we can always look at properties and find a reason
not to invest or not to buy. One thing I
would say is decide on what your parameters are so
that you know, Okay, these are the things I won't
compromise on, and then go and find something that meets it,
and then be brave enough to put an offering on
(39:26):
something and get it subject to financial due diligence, and
then work through the steps make sure the numbers work
for you. But one hundred and fifty grand. You've done
really really well. They need to go and make that
work for you.
Speaker 3 (39:38):
Good luck, Shafiek, thank you, thank you very thank you
for calling up, and thank you very much. Andrew really
enjoyed this out. And to all those people who tix through,
really sorry we didn't have time. We might keep those
ticks for next time. Andrew's on, have a great rest
of your Saurday night. You'll be watching the All Blacks,
no doubt.
Speaker 5 (39:55):
I don't know much about rugby, but.
Speaker 3 (39:57):
Yeah, sure, yeah, very good.
Speaker 2 (39:59):
Nice one.
Speaker 3 (39:59):
That is thank you, Andrew. That is Andrew Nickel, managing
partner of OPS Partners and of course co host of
the very popular Property Academy podcast. Right after five o'clock,
it is the Parent Squad with Sarah Chatwim and we're
going to be talking about traveling with children along with
AI being utilized in school now. But if you've got guarantee,
(40:22):
Sarah is the person you need to speak to. Eight
hundred eighty ten eighty is the number to call. If
you prefer to text, that's all right as well. Nine
nine two is that number. New Sport and Weather on
its way. We'll see you on the other side of
five o'clock.
Speaker 1 (41:11):
For more from the Weekend Collective, listen live to News
Talk ZB weekends from three pm, or follow the podcast
on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks AB.
Speaker 2 (00:18):
You can see standeesisods.
Speaker 1 (00:27):
You can see.
Speaker 3 (00:29):
Standeespisode Welcome back into the week in Collective. Tyler Adams
filling in for Tim Beveridge the afternoon and it is
time for let me just turn off the zoom here
before we carry on. It is time of course for
the one roof radio show and were joined for the
first time by Andrew Nicole. He is the managing partner
(00:51):
of Op's Partners of Property Investment boom firm Rather and
co host of the very popular Property Academy podcast Heday. Andrew,
Nice to.
Speaker 2 (00:59):
See you, Hi, Hello, nice to be here.
Speaker 3 (01:02):
Very good. How is your Saturday afternoon going.
Speaker 2 (01:05):
It's been pretty crazy for as afternoon, I know. And
I've been having a look at some development sites that
some of the developers that were working with a building
at the moment.
Speaker 3 (01:15):
Fantastic. What about you based? Are you based in christ Church?
Speaker 2 (01:18):
I'm based in crash Church, but we've got office and
Orkland as well, so I kind of bounced between the
two depending on where I'm needed.
Speaker 3 (01:24):
Fantastic. Now I was doing a bit of reading up
about you, Andrew. You are a click to Revard. Is
that right?
Speaker 2 (01:30):
Yeah? Yeah, I quite like I like some art because
I'm not artistic and the slightest and I quite like
a bit of text and do me. So you're obviously
behind me at the moment. There's quite a few textas
doing pieces around my house. My partner was vegan when
we're through for me, so it was a bit shocking
for her walking into my house and seeing a bunch
of dead things.
Speaker 3 (01:47):
A little bit awkward. Yeah, what was your The favorite piece?
Was it half links, half goat?
Speaker 2 (01:53):
Uh?
Speaker 4 (01:53):
Yeah it was.
Speaker 2 (01:54):
There's a girl in Littleton that blends together animals, so
she'll find like a links and a goat and chat
or something like that, and she put them all together
and then I paid money for it.
Speaker 3 (02:05):
Fantastic, love it. Now, let's have a chat about the
ocr It remained unchanged earlier this week at five point
five percent, and I know there was hope out there.
Optimism wasn't quite the right word. Hope that they may
indicate that they're looking at cuts, perhaps not this round,
but certainly in the next couple of rounds. Were you
surprised that they held it at five point five or
(02:27):
that was pretty well indicated Yeah, Now.
Speaker 2 (02:30):
We were definitely expecting there wouldn't be any cuts either
later until later this year, early next year, at kind
of the latest, I think everyone was pretty much on
the same page that it was going to remain unchanged.
What they did do, though, is they signaled that there
would be rate cuts perhaps later on this year, and
that's definitely put a bit more confidence in the market,
(02:50):
and we saw Westpac react to that and reduce their
rates kind of the next day. And while the ocr is,
you know, it's kind of the most commonly discussed for
US rate that we see the headlines for, it takes
quite a long time for actual interest rates to follow
an interest rate cut. So if you look at the
increases or decreases particularly, it can take when we modeled
(03:12):
it out, up to eighteen months for the full effect
of that cut to actually be in line with what
we pay the bank for interest rates. And so the
most important thing for borrowers at the moment is, Okay, well,
we can see that there is going to be some
easing in the in the in the near future. There's
kind of light at the end of the tunnel. And
the swap rate, which is the one that we probably
(03:34):
don't talk much about. Is that that's the rate which
banks actually borrow money at or they'll exchange money at.
That dropped off a cliff basically after the Reserve banks announcements,
So the next day it plummeted ed. Our economist who's
been on your show plenty of times, sent me a
screenshot and he said, this is the happiest day of
my life. And then we saw Westpac cut their rates
(03:57):
later on that day. So I do think now we
are in a position where there is finally light at
the end of the tunnel for borrowers because let's face it,
interest rates suck at the moment.
Speaker 3 (04:08):
Yeah, but bottom line on that, do you think mortgage
holders need to stress out so much when they are
coming up for refixing? And a lot of mortgage holders
do stress cheap as do I go one, do I
go eighteen? Do I go six months? You know what
is the future going to hold? Reality? Is do they
need to stress out that much about it?
Speaker 2 (04:26):
Well, one thing, if people are stressing out, I always
recommend just splitting up your mortgage. So put a horse
in both racist So maybe split your mortgage in half.
Put someone six months, someone eighteen months, personally, I'd only
be fixing for no greater than one year. I guess
sometimes people want to pay a premium to have certainty.
(04:46):
So if you're really really restricted with your budget and
you've only got a certain amount of money that you
can contribute to your mortgage, maybe you kind of pay
that insurance premium and fix for a longer period of
time if you want the cheapest rate or the cheapest outcome.
That's not how I would recommend you go right now,
but probably be saying if you're really really concerned about it,
(05:07):
split your loan and doing in chunks.
Speaker 3 (05:10):
Yeah, what's the ideal scenario there? Would it be if
you split it into three and it rolls over every
six months? Is that kind of the ideal?
Speaker 2 (05:17):
I'd probably go ever a year if it were me,
just because of the admin. There's still some admin with
refixing your mortgage, and if you're forget that goes on
to floating that can be quite a lot higher than
the fixed rates. So if you want to kind of
a stagrip, maybe maybe you do a six month, maybe
a one year, maybe an eighteen month. At the moment,
because interest rates are certainly looking like they're going to
(05:38):
drop over that period of time. In a more normal market,
you might go one year, two year, three year.
Speaker 3 (05:44):
Yeah, fantastic. If you've got a question for Andrew, now
is your chance. Oh, eight hundred and eighty ten eighty
is the number to call, and you can text through
nine two, nine to two, And it pays to get
in as early as you can because it's always popular
and the text questions have already come through Andrew. This
one from anonymous Ask Hi Andrew. I'm a first home
(06:04):
buyer and struggling with the market in Wellington at the moment.
Very difficult to determine what sort of offer I should
make for the properties that I'm seeing. Any advice please
on getting a market value in the current climate.
Speaker 2 (06:20):
Yeah. So I like to use tools like homes dot
co dot nz, but you can't hang your hat on it.
You don't want to use those online tools or Velocity
or Logic run those tools and go right. That has
to be the price I've got to pay, because the
last thing you want to do is a first time
buyer is miss out on a property and then just
be sitting on the sideline for the next three years.
(06:41):
One of the real challenges for first time buyers at
the moment, is that as interest rates ease and debtor
income ratios become effective, because they are not effective at
the moment, even though they're here, you might not be
able to actually borrow as much money from the bank,
so you might not be able to buy the house
that you want. And so you've got I'm not saying Russian,
but certainly consider the fact that you don't want to
(07:03):
get to a point where all of us and you
can't buy the house that you want. Buying your first
house is always a hard one because it's the first
time you've done it, it's a huge amount of money,
is probably the most expensive transaction you're going to make
in your life, and so we tend to we tend
to overthink it quite a lot. But as we move forward,
you know, five years from now, whatever price you pay
(07:25):
is probably going to seem cheap, so when you when
you're looking back, So I'm all about making sure that
it's affordable for you. So that I think one of
the challenges that first time buyers that I've worked with
have faced is they want the property that their parents
had now and that's maybe just a generational thing. And
so now we probably we often spend a bit more
(07:47):
money than probably optimum, I get something much more affordable,
and then I'd be thinking about kind of using this
as your stepping stone. So I guess that's probably a
long winded way of saying to use some of the
online tools if you kind of want to get a
guide for price. The good thing about the well into
market is it's dropped so much over the last few
years as the peak of the market that there are
(08:09):
some really good deals to be had. And if you're
buying it for your own home, yeah, you're what You're
not so worried about what the market does over the
next we Well, but I don't see there's going to
be any more drops and prices there.
Speaker 3 (08:19):
Yeah, fantastic advice. And I remember when we bought our property,
first property, and I was stressing out over ten thousand dollars,
you know, I thought we'd overpaid by ten thousand dollars.
Of course, looking back, I mean, who cares. It didn't
matter at the end of the day, and it didn't
actually add that much more to the mortgage. So stressing
out about those details ended up being the wrong strategy
for us as first time Buyas another text, says I
(08:42):
and Trew. We are coming up for refixing in August.
The whole mortgage is coming up for refixing. How easy
is it to split into multiples? Do I need to
talk to a broker? That's from Michael.
Speaker 2 (08:58):
That's pretty straightforward. I think the banks will that you
can't do that on your online at nowadays, but you
do have to contact the bank. It's relatively easy to
do that through the one hundred numbers now because we've
got so fewer branches now, they're making it easier and
easier to do things online. You shouldn't have to go
through a whole new credit application. You only have to
(09:21):
do that if you're increasing the mortgage or you're asking
to extend interest only, which it's your own house. That's
highly improbable. So it should be a very very straightforward
thing to do. You don't have to use a broker.
I'm all about using mortgage broker because someone else is
going to do all the heavy lifting for you if
there is any heavy lifting. But you could just do
that straight with the bank.
Speaker 3 (09:42):
Just on the broker question. And there's been some not concern,
but a bit of discussion around how you pick the
right broker. And how you know you've got a broker
that is actually working in your best interest and looking
around for the best deal. How do you know that?
Yet there's a lot of trust involved in that relationship,
isn't there?
Speaker 5 (10:02):
Yeah?
Speaker 2 (10:02):
Absolutely, because brokers are paid by the bank, and so
they are incentivized to get you money from the bank.
So there is a potential bias that a broker is
going to say, right, you're actually going to get a
much better deal at B and ZED and you're with Westpax,
I'm going to move you to B and Z will
set you up there, and then they get paid for
your full mortgage, whereas if they just do the fixing
(10:23):
at your existing bank, they get paid a noomenal thing.
It might be a couple of one hundred dollars one
hundred and fifty dollars. Now, I would always go on
a recommendation when it comes to mortgage brokers. We wrote
an article and we rank top brokers in New Zealand.
So if you type top mortgage brokers in New Zealand,
we put some of the people that we think are
the best of the best. Some how brokers are paid
(10:44):
can differ from company to company, so most brokers will
be paid just a straight commission from the bank, and
certainly that's how the firms all get paid. But some businesses,
as for example, Spirrel are a great example. They pay
their brokers a salary, so there's no incentive for them
to take your mortgage somewhere else and do the wrong thing. Now,
I like to take NNX Broker that most brokers out
(11:06):
there do the right thing by their customers. I know
there are going to be some people that would be
going to just do the right thing for their back pocket,
but I think now that with the t with the
tighter financial market, I think that we've weeded out a
bunch of a bunch of those people. So most of
the time you're going to get someone that's going to
work for you, but go on recommendation.
Speaker 3 (11:26):
Yeah, banks have come out and not specific people within
those banks, but say you don't need the broker, you
can come straight to us and we'll give you the
best deal. Of course they're going to say that, but
there is there some truth to that or the value
of the broker clearly is you know how the system works.
You know when the bank might be trying to pull
a fast one, and you can you can call them
out on.
Speaker 2 (11:45):
That, you know. I actually think the benefit of using
a broker isn't to get the best rate necessarily or
the best pricing. You will probably get the same if
you go into the bank and you negotiate yourself, but
the problem is you don't have any point of reference.
So a broker might say, hey, I just got you know,
sex point sixty nine B and Z for one year
fix and I've got a four thousand dollar cash back
(12:07):
for someone that refinance. We can try and get that
for you again. Again, if you go into your back
at wish Pac, you don't know that they're giving you
the best deal straight off the bat, but obviously if
they can. If wis Pack, your bank can do your mortgage,
and that not to put on respect by the way,
the right that pack whish Pac, if they don't have
to pay a broker to do the job that you
(12:28):
know they can do themselves, then obviously there's a benefit
for them doing it. I actually think though, the big
benefit of using a broker is a round structure. So
one of the things that I met with someone only
just last week and they had a four hundred thousand
dollars mortgage can well take. And they had two hundred
thousand dollars in the back, and they'd received some inheritance
(12:49):
and they didn't want to pay it off the mortgage,
which I completely get right. They want to actually feel
like they've got they've got cash on the bank in
case something comes up. Now their bank hadn't spoken to
them about a thing called an offset mortgage or maybe
a revolving credit for solity, a way of reducing significantly
the amount of interest that they're going to pay. They'd
put it in a term deposit, which is a stupid thing
(13:12):
to do because they're going to they might earn five
percent on that money, but they're going to pay seven
percent to the bank, so they're losing two percent to
have that money and then term deposit plus the tax
that they're going to pay on their earnings that they
make from that tourm deposit. So sometimes it just takes
a broker to say, hey, look, we understand mortgages, that's
our specialty. What about these kind of things to make
(13:33):
sure that you're paying a few more just stars as
possible and paying as little interest as possible. It's not
just about that interest rate.
Speaker 3 (13:39):
Yeah, a financial advisor as well as a broker. There
Andrew text here from Rachel She asks, I need to
fix in October. Do you think other banks will drop
their rates or is it a good idea to swap
to WHISPAC.
Speaker 2 (13:53):
I think that what often happens is one bank will
lead the charge with interest rates and every dog has
its day when it comes to that, and then other banks,
even if they don't reduce their interest rate publicly, they
will compete. And so again that's where sometimes using a
broker is a great idea because they might say to
your bank, hey, Whispeccer doing this? I want you to
(14:14):
be able to do that or even better, because again
the list price, the price that's on the shelf isn't
necessarily what you end up paying with the bank. Right now,
they've discounted quite heavily west Peccad, and chances are there
won't be a lot of discounting over and above the
interest rate that they're advertising. But other banks might have
higher interest rates, but discount are the same, or even
(14:36):
sometimes we find that another bank that has a higher
advertising interest rate will actually give you a better interest
rate because they want your business or they want to
retain your business. Often often banks will give you a
really good deal to keep your business. I remember I
worked at the Bends like twenty years ago, and I
remember being told whether or not this is still true,
(14:59):
but back then it would cost two and a half
times the amount of lending to get a balance to
balance off if we lost some money. So if we
lose a million dollars with the lending, we've got to
write two and a half to break even. So surely
banks then will want to keep your business, particularly if
you have good customer and you've got lots of different
products with them, and just on that.
Speaker 3 (15:20):
Is there more lucrative offers in the market now? I mean,
clearly we've talked a lot about WESPEC because they did
lower that one year rate to the lowest in the country,
and you'd hope some of the other big banks follow suit.
But I'm talking about cash offers. If you change your
mortgage to us, we'll give you one percent of the
size of the loan, et cetera, et cetera. They've come
back into the market, haven't they, And they weren't there
for a long time.
Speaker 2 (15:41):
Yeah, banks are definitely because there are least transactions happening
right now because interest rates suck and we're kind of
sitting on our hands a bit, and as a result,
banks have to try and incentivize business from other banks,
and so the way you do that is your gibbucks.
So it might be a cash back. The cash backs
are really good because if you're moving your mortgage, that
is going to cost your money. It's probably going to
(16:02):
cost you a couple of thousand dollars in legal face.
So if you kind of get if you're going to
get four thousand back from the bank, you're going to
be able to pocket two thousand dollars. You're just going
to be really careful though, because those cash backs do
have some caveats with them. So if you refinance your
mortgage or pay back your mortgage within usually a couple
of years, maybe three years, you have to pay that
cash back back to the bank. So you don't want
(16:25):
to get into a position where you lock them with
a bank that you know they don't sue all your
other needs. So maybe they didn't have a particular product
that you wanted, like for example, offset, and you use
them for a year because they had the lowest interest
and then they didn't have the lowest interest train in
the year's time.
Speaker 5 (16:41):
And you think, all right, I'm going to go to
A and Z. Now, well, A and Z might.
Speaker 2 (16:46):
Give you a cash back, but then you're going to
have to pay back the band that you've refinanced too,
so there can be some freshocks. You're going to read
the small print.
Speaker 3 (16:52):
There a lot of Edmund. Yeah, Now the calls are
lining up along with the texts. If you've got a
question for Andrew, Oh, eight hundred and eighty ten eighty
is the number of call. We'll take a quick break
and get to some of those phone calls. It is
the One Roof Radio Show and twenty three past four
backfree shortly here on New Storks EDB welcome back into
(17:13):
the wee Can Collective f and the One Roof Radio Show.
And we're joined by Andrew Nickel. He is managing partner
of Opes are partners. They are property investment experts. If
you've got a question for Andrew, now is your opportunity
free advice, which is always a good thing.
Speaker 2 (17:27):
Let's go to the phones. Todd, how are you?
Speaker 6 (17:30):
Yeah, good mate.
Speaker 7 (17:31):
I'm a mobile mortgage manager for one of the main
banks for the last twenty two years and I was
sort of listening to part of it just come back
from Rugby. But mate, I think people push the brokers
too much, and you know, the banks we don't get commissioned,
so we do get minus advice and we can approve
on our own back very quickly up to ninety percent
(17:54):
and then step high in ninety five percent per sessame bias.
But our services a lot quicker and we people there
are paid commission. There is that chance and we've seen
a lot of it in Australia where they take the
business away from a bank after three or four years
because they're going to get more commissioned. So you know,
(18:16):
I would say, you know, my passion is helping people
into their homes and sorting out in their mortgage. I
get them all this advice, but I don't get any commission.
And you know, and I'm a lot quicker. We do
prayer approvals, so you know, I'm not four brokers. You
(18:36):
can get Justin's got a deal straight from the bank.
But I say, you know, there isn't so much experience
there now as there used to be. But there are
guys like In myself, but been there twenty two years
with the same company and we kicked the brokers to death.
Speaker 3 (18:51):
Yep, well you've begged yourself very well, there, Todd. We'll
just get Andrew's response to there, Yeah, Todd that.
Speaker 2 (18:57):
I completely agree that mobile mortgage managers absolutely had their place.
I am. One of my good friends is Tony Mounts
is kind of the original.
Speaker 5 (19:08):
Mortgage broker, my oile mortgage.
Speaker 2 (19:10):
Manager in New Zealand and is now a broker. One
of the things that he said when he left the
bank be and Z maybe ten years ago, he said,
what I didn't realize is I had one particular way
of doing things, and I didn't realize all these other
products that other banks had until I went out and
(19:31):
was forced to learn them. So whilst I completely appreciate
that if you've got twenty two years of experience with
a particular lender, you're going to be absolutely an expert,
I don't think you find that all the time with
mobile mortgage managers. And I know that sometimes just because
of a lack of our staff nowadays, it can be
quite a lot harder to get people has experienced as you.
(19:53):
But again without being without being impolite, you're a one
trick pony in the sense that you know one bank's
policies and one bank's product. Sometimes people want to see
what all the offerings are. I completely agreed. So when
you say that there are brokers out there that will
tune business, they'll take you from bank to bank, I
think that people nowadays are coddling on to that kind
(20:13):
of behavior. Certainly, I am an insurance broker that did
that kind of thing, and I thought, well that I'm
not going to have that. I'm not going to have
no business taken around just so that you get paid again,
and I find them. I think we're pretty savvy nowadays,
and if we think that someone's not working for us,
we're open to firing them.
Speaker 4 (20:29):
Yeah.
Speaker 3 (20:29):
Nice, nicely, said and Todd. I mean, clearly, your customers
have rave reviews about what you do for them, and
that's that's what it comes down to, right And to
Andrew's point, I've fired a broker before because he wasn't
doing enough for us. I didn't think he was kind
of a little bit too laid back and didn't seem
to understand our situation. So clearly, if you've got someone
(20:50):
like you who understands your client situation, you've got a
broker who's doing the same thing. That's what it comes
down to in the end.
Speaker 4 (20:56):
Right, Yeah, for sure.
Speaker 7 (20:58):
Like I take great pleasure in dealing with my clients
there and their kids, so dealt with many of that
many many years ago as the country wide events started
the mobile manager chain and I was with them. But yeah,
now I'm for going direct to the bank. You know,
when you've got commission involved. It's just human nature.
Speaker 3 (21:22):
Yeah, fair enough, nicely, said Todd. Sorry to wrap that
up there. We've just got lots of calls to get to. Mike.
You're on with Andrew. How are you.
Speaker 4 (21:32):
Cool?
Speaker 2 (21:33):
Hello?
Speaker 3 (21:34):
Yeah, you get Mike, You're.
Speaker 8 (21:35):
On, yep, good bye Andrew.
Speaker 2 (21:38):
Hi, Mike, how are you good?
Speaker 4 (21:40):
Mate?
Speaker 8 (21:41):
Listen, my home line comes off at the end of
the month. I've got two hundred, but around two hundred
to pay, and I assume they would just be paying
mostly interest. So I'm just thinking how I can refix
and I want to sort of put maybe you know,
if I can put an extra put the money each
(22:03):
month into it, like float half of it or fix
half of it, or.
Speaker 2 (22:11):
The way I would do it if I were you,
as I would, I would figure out what the extra
I could pay over the course of the years and
then I'd set myself a challenge. So so for example,
you said, okay, I can do another five hundred dollars
a week. I think for example, that works out to
be twenty five thousand dollars a year. I would I
would float thirty thousand as a revolving credit or an
(22:33):
offset loan, and then I would put my five hundred
dollars diligently into that account every week, and in any
suit plus that you've got, you can add that to
the revolving credit to try and reduce that amount, and
then I'd fix the balance of your loan, so the
one hundred and seventy thousand, I'd fix that for one year,
and then at the end of the twelve months, i'd
see how I performed, and if i'd if I'd accidentally
(22:55):
had to take a little bit of money out because
the car needed to merge it repairs, and I only
had twenty seven thousand dollars and my revolving credit that
I paid off, I'd take that twenty seven and I'd
do a up some payment off my mortgage, the one
you're fixed line, and then I'd fix that for another year,
and I'd do the same thing again i'd rinse and repeat.
If you find that you pay your revolving credit off completely,
(23:16):
then you want to set yourself a bigger challenge for
next year. You want to make it forty thousand dollars.
Speaker 5 (23:21):
And the great thing about a revolving credit or.
Speaker 2 (23:23):
An offset is you can be brave with the amount
that you put in there over and above your payments
to your normal mortgage because you can access it again. Now,
if any listeners are listening to this and thinking, oh, yeah,
I'm going to do that, but you're the type of
person that's going to get tempted to take that money
back out and spend it on a jet ski, for example,
then don't use a revolving credit. Just increase your payments
(23:45):
and make sure that they're manageable because you're committing to
them for the next year. But if you sound like
a sensible guy, I would be thinking about how much
extra I can pay above my minimum payments, and I'd
be putting it into the revolving credit.
Speaker 8 (23:58):
Yeah, okay, all right, brilliant.
Speaker 3 (24:00):
Thanks nice one, Mike, Thank you very much to be
calling up. Now, let's get to some of these because
we've got a lot here to get through. Andrew afternoon, Andrew,
your thoughts please on two people siblings using each of
their key, we savor to purchase a home one home.
Is this a feasible option? They are both an employment
from clear.
Speaker 2 (24:20):
Yeah. I think getting into a partnership is how I
started them. Property. So my first of a property that
I bought, I bought with a girlfriend. I'd say a
ten thousand dollar deposit. She's saved up a five thousand
dollar deposit, and we put our fifteen thousand dollars together
and we went out and bought a house. Now, siblings, partners, friends, whatever,
(24:41):
you want to make sure that you've got a partner
that you can trust. Obviously, fest of all, if it's
a sibling, that should be fine. But they do say
fashion friends go off and fashion family go off in
three days. So you do have to make sure that
you've got an exit strategy if something goes wrong. So
let's say you go, right, I'm going to partner up
with my sibling. We're going to buy this property. What
I would do is I'd sit down and think about, Okay,
(25:02):
what happens if one of us do science they want
to leave that property in three years time? For example,
and I say that thinking about some of my clients
in Auckland. They partnering up siblings just like you. They
bought a property and then she ended up meeting a
guy and moving in with him. Now to cover her
part of the mortgage, she put in roommates, and the
(25:25):
brother didn't like the roommates, and then it became a
bit of a problem. So you do want to have
those conversations early on, regardless of the nature of the partnership,
be it romantic or family or friends, so that you know, okay, well,
if there's a change in circumstances, what happens. Does someone
buy me out of my share of the property, how
will I value the property in that instance? Who's covering
(25:47):
the mortgage in the event that one person leaves, all
those kinds of things. But I do think partnerships are
a great way to get into the property game. And
I still invest with friends all the time, So yeah,
I think it's a great idea.
Speaker 3 (26:02):
And in terms of those legalacies and how you see
it work out of things don't quite go to plan,
that's pretty easy for a lawyer to write that up
for you. Whether it's tenants and common or joint tenants,
whatever it may be pretty I suppose the extra cost
to employ a lawyer to do that as well with.
Speaker 2 (26:18):
It absolutely, I think the best thing you can do
before you actually go to a lawyer with that is
outline how you see it working to begin with. So
in my answerence with that ex Gilfrid, we said, in
the event that we split, we did spoiler alert, we
will sell the property, we will take our deposits out,
and then we'll split the difference fifty to fifty. Now
(26:39):
you might do it a different way. You might say, okay,
well Andrew put in a higher deposit, so he takes
a higher percentage. Normally I say, just do everything fifty
to fifty other than the deposit, and just say an
event we sell the property, we split the we take
back our initial input, and then we split the profit
or lost fifty to fifty.
Speaker 3 (26:56):
Yeah, very good. Now, Clear's just come back and that's
great advice for a lot of people listening out there.
But she just mentioned it's a first home for both
of them. And I know there are some legal complications
of getting the Kiwi saver out, but for two people's siblings,
would they be able to get both of those Keywi
savers out for a deposit.
Speaker 2 (27:15):
Yeah, there's no issue with that. You can absolutely get
probably so long as you give yourself out as long
as you've been in there for three consecutive years, so
you have to have built up some money over that time.
You can't take out the initial one thousand dollars grant
that the government put it if you've got that, so
normally they'll leave you a thousand dollars in there, but
anything over and above that, as long as you qualify
(27:36):
because you've been putting them for three consecutive years, that's fine.
Speaker 3 (27:39):
That's great. Just on the shutting down of the home
start grant, do you think that's going to have much
of an impact on the first time buyermarket?
Speaker 2 (27:48):
Yeah, I think it will. I remember actually, I think
it was on this show and some people were calling up.
I think it will have an immediate shock to the
shock to the to the market because there were people
that there will be people that were sitting on the
fence waiting for the bottom of the market.
Speaker 5 (28:05):
I think for interest us to recover and now they can't.
Speaker 2 (28:08):
Afford it into the market because it could be ten
thousand dollars for a couple up to twenty thousand dollars
if people were buying new properties, so as a couple
you get five or ten thousand dollars at each so
a twenty thousand dollars had or a ten thousand dollars
hat depending on what you're buying. It's pretty significant nowadays
with a deposit, So it might mean that people are
not buying for the next sex twelve months while they
(28:29):
save up that extra money, and then of course the
challenges off the market goes up over the next six
to twelve months, then you're going to save a little
bit more.
Speaker 3 (28:36):
Yeah, yeah, absolutely right. We've got to take a break
and we'll get to more of your calls and texts
very shortly. It is the one roof radio show, and
you're listening to new storms. There be twenty two minutes
to five bag very shortly. Good Afternoon. We are joined
by Andrew Nichol. He's the managing partner of Opes Partners,
a property investment firm, and also co host of the
very popular Property Academy podcast. If you've got a question
(28:58):
for Andrew, now is your chance. O eight one hundred
and eighty ten eighty is the number to call Andrew.
Good afternoon, Hello.
Speaker 4 (29:06):
Andrew as Andrew speaking.
Speaker 2 (29:09):
Oh hello, sorry, nice.
Speaker 4 (29:14):
Good names. Yeah, yeah, I always just wondering, really, how.
Speaker 6 (29:20):
Do you you know, probably for me is a long
term investment, but how do you factor in all the
outside things to actually you know? Then said it and say, well, okay,
(29:42):
here's an investment versus another investment.
Speaker 3 (29:46):
You're talking about property versus another another type of investment.
Speaker 4 (29:50):
Yeah, just yeah, I mean you could just okay, just
let's take an example, for example, just the index value
of the n z X fifty.
Speaker 3 (30:05):
Yep, Andrew, you pick that up.
Speaker 5 (30:09):
Yeah, okay.
Speaker 2 (30:09):
So I think the number one benefit of a property
over other asset classes is the ability to borrow money
for it, so leverage. So if you were to take
up so you had one hundred thousand dollars to invest
in anything, you can put it on the bank and
you might get net three percent, So you make three
thousand dollars. You take that one hundred thousand, put it
into a managed fun you might make five percent. You
(30:31):
put it in shears and you might make ten percent,
so you get ten thousand dollars. That's all great, And
property won't give you a ten percent return year on year.
It might get you more like a five percent return
year on year. But the difference with property is that
one hundred thousand dollars isn't what you buy a houseboard.
You take that and that's your deposit. That could be
your twenty percent deposit for example, and you go and
(30:52):
buy a property with five hundred thousands. Now, if you
get a five percent growth on a five hundred thousand
dollar property, that's twenty five thousand dollars worth of grow.
So you've got a twenty five thousand dollars return on
one hundred thousand dollars that you have invested, because the
bank invested the four one hundred thousand. Now there's a
whole lot more considerations. You've still got to consider the
cash flow and my topping it up, which most people
(31:13):
are nowadays. There are some other risks with property over
other things like tenants. Things can go wrong, You're going
to ensure the property, the government might make changes, so
there are a whole lot of moving parts. But I
think the number one benefit when I look at property
is hey, I don't have to do it with all
of my own money. And that's how I got started
on such a little amount of money, like fifteen thousand dollars. Yeah,
(31:35):
it was a lot for me back when I bought
my first rental property when I was nineteen.
Speaker 5 (31:38):
But you know, you think about well, I went and order.
Speaker 2 (31:42):
Two hundred thousand dollars property because you could borrow it
ninety five percent back then, Like I had a two
hundred thousand dollar asset going up in value, I couldn't
have put two hundred thousand dollars in years because it
had taken me a year and saved my ten thousand
dollars deposit.
Speaker 3 (31:55):
Yeah, it's a good point. The bank isn't going to
lend you five hundred thousand dollars for the s and
P five hundred Andrew caller, Andrew, thank you very much
for that. Rinda, you're on with Andrew.
Speaker 9 (32:05):
Hey, My question is APO keeps going mount to the
target date of.
Speaker 10 (32:16):
What the interest it's going to be? Like the features like, oh.
Speaker 3 (32:22):
Your phone line is terrible, Verrenda, But I I hope
I've got the question right here, is that if inflation
keeps going up, what will happen to the interest rate?
Is that the just yes, Andrew, was.
Speaker 2 (32:33):
The question was the question when interest rates inflation comes down,
what will it do going up.
Speaker 5 (32:39):
No, no, no, so what how much it's gonna go down?
Like if it's.
Speaker 2 (32:46):
Yeah, sure so so interest rates have been tracking down
for a long period of time. Now, the long term
average we kind of work on as around four and
a half five percent for an actual interest rate. So
if tag, if inflation is within it's target of one
to three percent i e. Two, then I think you're
probably going to see interest rates in the kind of
(33:07):
four to five percent mark. So that'll be a lot
more comfortable for a lot of people. We're not going
to get there overnight, don't get me wrong. And we're
not going to sit at four and a half which
is the long term average for a long duration. Sometimes
it might be closer to four. Sometimes we may be
closer to five, and it might be over. If you're
doing forecasting, i'd recommend you know, you maybe do a
(33:29):
five percent is a long term but I wouldn't be
relying on that for the next five years.
Speaker 3 (33:34):
What are banks stress testing out at the moment, do
you know? Andrews?
Speaker 2 (33:37):
Yeah, and so your stress test so you're servicing test rates.
So whatever interest rate the bank's going to charge, you
might say, how I can afford the mortgage at a
seven percent interest rate of this today, but the banks
are going to stress test you at about a nine percent,
so they had a margin on there. Now at the
moment because of that, with the dties coming out and
(33:58):
the dtaen come ratio restrictions, we can still borrow the
same amount of money we can now as so those
DTI limits coming in have had zero actual impact on
people's ability to borrow. When interest rates get down to
five percent, for example, all of a sudden, now we
might be stress testing let's say seven percent, and those
(34:20):
DTIs will really have an effect. So now you're going
to have different layers of assessment. You have to have
the sufficient deposit, you'll have to be able to meet
cash flow, but then you'll have the DTI test as well,
which will limit the amount you can borrow.
Speaker 3 (34:33):
Yep for Renda, Yep, that sounds good.
Speaker 10 (34:36):
Yeah, that sounds good.
Speaker 3 (34:37):
Thanks very nice, Thank you very much for calling up.
We'll get Halgrim before the air break it a helga.
Speaker 9 (34:43):
Oh, hello, how are you?
Speaker 3 (34:45):
I'm good? Andrews standing by for your question.
Speaker 9 (34:49):
I've got a different type of question. I've got ks
and omis go to buy a six hundred stalls and
seventy thousand for the car park, not stand alone, but
three whole units. And I was wondering, like you have
(35:13):
to not a body call, but they have a thing
where you pay, you join like a resident society and
you pay two thousand and four hundred a year for
where the car park to be cleaned up in other
areas like that. But I thought, if I bought that,
like it's an evandale area, very new, how long before
(35:35):
I could sell this? Again?
Speaker 3 (35:37):
Oh, great question.
Speaker 2 (35:39):
Yeah, that's a tough one. So the thing that you're
talking about, the residence association, it's basically like a watered
down body corporate, and often they will have the insurance
included in that, so insurance and some of amazonance those
common areas. How long to sell it is a hard one.
I always say the best time time property as long
(36:03):
as possible, So you don't want to sell it a
couple of years, have it go up, say fifty thousand dollars,
but then pay a lot of that to a real
estate agent and then only end up making a little
bit of money. If you hold that property for more
than two years, then you're going to be outside of
the bright line test. So the first thing you'd want
to do is make sure you're outside of the brightline test,
(36:25):
because if you sell it within two years, any profit
that you make is going to be taxed. So the
minimum would be two years. But I've been saying, well
as long as possible, But it depends what you're buying
it for. And this is where're talking to a financial
advisor and your place is probably worthwhile because if you're
buying this property to provide you with some cash, then okay,
(36:47):
well you might say, well, I don't need that cash
for five years, So what does that look like? You
sound like you might be a little bit older. So
I would have thought that the right buy for you
is something that generates you really high income. You might
compromise a little bit on capital growth to get significant
income off that property because you could live on that
week to week. For example, if you've got cash, then
(37:08):
you're not paying all of that rent to the bank.
Speaker 9 (37:12):
Yeah, I was actually going to live it up myself.
Speaker 2 (37:16):
Oh you're going to live in it yourself. Oh in
that case, really, it just comes down to when you
actually need the.
Speaker 5 (37:22):
Money back out.
Speaker 2 (37:24):
But you won't be subject to the bright line if
you're living in that owner occupied property as an exempt.
Speaker 3 (37:29):
Fantastic go well helga a best of luck. We've got
to take a break. It is ten minutes to five
pack three shortly here on the Weekend Collective and the
one Roof radio show.
Speaker 1 (37:41):
The one roof property of the Week on the Weekend Collective.
Speaker 3 (37:46):
Yes, the one roof Property of the Week this week
is thirty five Plunket Street, Calbourn, Wellington City. It's a
three bedroom, one bathroom, one off street parking property, last
sold for one point two million dollars, now valued at
two million. Constructed in early nineteen hundred's, this home has
maintained many of its period features while being upgraded for
(38:06):
today's living. Just a short walk from Calbourn Village, the
home is single level and easy to access, with detailed ceilings,
gorgeous views and hardwood floors. That sounds good, doesn't it.
You'll get all of the beauty of a period home
with all the modern day luxuries and Calbourn Andrew. That's
a pretty good location in Wellington City, isn't it.
Speaker 2 (38:25):
Yeah? Great location. I think I strugg We had almost
open capital growth roats.
Speaker 3 (38:29):
Yeah, absolutely right, We've got time for one more cool
sha fake Thanks for hanging on now. Bear in mind
we've only got about a minute thirty, so you get
your question in there quick.
Speaker 10 (38:39):
Okay, Hi Andrew, thank you very much. I'm a big
fan of you, watching a lot of few videos. I
have got a lot of my savings, more than one
hundred and fifty thousand. I've been sitting on it for
more than a year. I've been viewing many properties. There'll
usually be some issues, probably New Zealand state homes around
and for this, for other technical reason, I will be
(39:01):
leaving that property. So I really don't know where to
start from.
Speaker 2 (39:06):
That's always hard, and I think that, particularly when we've
saved a significant amount, like one hundred and fifty thousand dollars,
we can always look at properties and find a reason
not to invest or not to buy. One thing I
would say is decide on what your parameters are so
that you know, Okay, these are the things I won't
compromise on, and then go and find something that meets it,
and then be brave enough to put an offering on
(39:26):
something and get it subject to financial due diligence, and
then work through the steps make sure the numbers work
for you. But one hundred and fifty grand. You've done
really really well. They need to go and make that
work for you.
Speaker 3 (39:38):
Good luck, Shafiek, thank you, thank you very thank you
for calling up, and thank you very much. Andrew really
enjoyed this out. And to all those people who tix through,
really sorry we didn't have time. We might keep those
ticks for next time. Andrew's on, have a great rest
of your Saurday night. You'll be watching the All Blacks,
no doubt.
Speaker 5 (39:55):
I don't know much about rugby, but.
Speaker 3 (39:57):
Yeah, sure, yeah, very good.
Speaker 2 (39:59):
Nice one.
Speaker 3 (39:59):
That is thank you, Andrew. That is Andrew Nickel, managing
partner of OPS Partners and of course co host of
the very popular Property Academy podcast. Right after five o'clock,
it is the Parent Squad with Sarah Chatwim and we're
going to be talking about traveling with children along with
AI being utilized in school now. But if you've got guarantee,
(40:22):
Sarah is the person you need to speak to. Eight
hundred eighty ten eighty is the number to call. If
you prefer to text, that's all right as well. Nine
nine two is that number. New Sport and Weather on
its way. We'll see you on the other side of
five o'clock.
Speaker 1 (41:11):
For more from the Weekend Collective, listen live to News
Talk ZB weekends from three pm, or follow the podcast
on iHeartRadio.
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