November 29, 2024 • 41 mins
The Reserve Bank of New Zealand has cut the OCR by 50 basis points in the final announcement of the year.
Many are of the mindset that it's low enough to fix for a longer term - but that may not be the case.
Experts say even though the cuts are looking good, banks aren't fully reflecting them in mortgage rates.
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Episode Transcript
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks
EDB We Can.
Speaker 2 (00:14):
We Specious, we Can Build.
Speaker 3 (00:22):
Suspicious.
Speaker 2 (00:26):
Yes, welcome back. This is the Weekend Collective. I'm Tim Beverage.
By the way, I'm still sort of slightly recovering from
the panel with Wilhelmina Shrimpton and Neva reading money. Great
fun and if you missed it, you can go and
check it out. Look for the Weekend Collective on iHeartRadio
or wherever you get your podcasts of course as well.
But now it is time for the one roof radio show.
And my guest is an investment coach at Property and Prentice.
(00:49):
She's very familiar to most of my listeners unless you're
brand new. And it's Debbie Roberts today. Debbie, how are
you going.
Speaker 4 (00:55):
I'm doing great. Thanks for having me.
Speaker 2 (00:58):
You've actually you're just telling me you've been recovering from
the sort of flu of all flues.
Speaker 4 (01:03):
I know, the dreaded leg What wish i'd had that flu?
Jab missed it.
Speaker 2 (01:08):
It's funny. It's one of those things, isn't it. People
say colds and flues and they go sniff, sniff, I've
got a cold and it's like, well do you feel
like living? They go, yeah, say you've got a cold,
inlet the flu, because when you get the flu, it's horrendous.
So I'm glad you made it in.
Speaker 4 (01:19):
Well done, I survived.
Speaker 2 (01:21):
Yeah. Hey, look now, look, we've all heard now that
the Reserve Bank has cut the fifty basis points. There
was some talk earlier on of it being a bigger cut.
Quite a few arguments being made for points seventy five
or even one whole point, and there'll be those be
wondering whether this is the time to fix. For a
longer term, that might not be the best option. I
(01:44):
would say, there's obviously still more to come. But you
have look look at you. You haven't got a copy
of the Monetary policy statement. You've done it's in color,
and see as you've found through it, you've highlighted bits.
Is Actually, here's a simple question. What we all wait
for is what's a cut by? What do you learn
(02:06):
from actually reading the statement?
Speaker 5 (02:08):
Oh?
Speaker 4 (02:08):
You learn heats and same with watching the media releases
and things like that afterwards. So one of the things
that caught my eye was that their planning or their
projections are to reduce the ocr by another one to
one point five before the end of next year by
another one, so one hundred to one hundred and fifty
(02:30):
bases points from here, from.
Speaker 2 (02:32):
Here or from where it was before they saw them here.
So where are we are?
Speaker 4 (02:36):
So okay, that's actually that's quite significant.
Speaker 2 (02:39):
That actually is because what are we It's where four
point twenty five?
Speaker 4 (02:43):
Now four point twenty five.
Speaker 2 (02:45):
I'd struggle to imagine them wanting to go below three.
Speaker 4 (02:48):
Well, there's there's a figure that they say is neutral,
and that's somewhere around the three mark. I can't remember
it off the top of my head. It is in
here highlighted for me.
Speaker 2 (02:59):
That's all right. While you're doing that, you can look
for that, because what am I going to do is
throw to our listeners as well. We want your calls
on O eight one hundred eighty ten eighty. You can
text on nine two nine two. The simple question is
should the RBNST have gone further? And I think you know,
I almost softened up my own opinion of this over
the last week or so because we've got used to
the Reserve Bank Governor Adrian or being conservative with many
(03:21):
of his moves. You might remember, actually here's something to
recall is that probably even in the course of this
year he had not he had talked about keeping the
interest rates where they originally were until next year and
how quickly times time flies and circumstances change. But do
you remember that he was he was literally talking about yeah,
and all of a sudden, what do we know? We're
(03:44):
tumbling and we're going to tumble further. So one eighty
ten eighty should the Reserve Bank have gone further already?
Do you think there's a can you understand why they
might sort of want to eke it down, you know,
in steps, But there have been commentators in the last
few months have said next time he should cut up
by a whole point. And if he's if the statement
itself is saying they're planning to cut further than I
(04:06):
would say fixed for as short as possible at least
not specific financial advice.
Speaker 4 (04:11):
That's not specific financial advice. But I mean even you know,
the banks straight after the announcement started reducing their rates
and now they're competing with each other, so you know,
for market share as well. So it's it's quite interesting
to see what's happening in the interest rates space at
the moment and that is likely to continue.
Speaker 2 (04:30):
Is so much jostling gone since the day it's south
because initially you see an instant reaction because they've got something.
They'll have their plans locked in its depending on what
the rate reluction is right now.
Speaker 4 (04:40):
And some of the banks were reducing before the announcement.
There was one that came out just minutes before the announcement,
it felt like, and then a few others made their
announcements straight afterwards. One of the banks, one of the
main banks, has sort of held out for a little
bit longer. So we're expecting some movement in that space
(05:01):
in the next few days.
Speaker 2 (05:03):
Here's a cynical one. A I'm looking at Z which
is my bank, and the two and three year interest
rates are six point one nine. This is just a
standard one. This isn't without having fantastic levels of equity.
But the six month rate is six point eighty four.
Because you know what that tells us. They know that
we're going to go for short rather than long, or
(05:24):
they're trying to entice us for longer, and they really
think they're going to make money out of us in
the next year or two.
Speaker 4 (05:29):
Yeah, and the advertised rates aren't their actual rates either,
So you know, like mortgage advisors can get you a
better deal than that, And same with probably if you
went directly to the bank yourself. Obviously, if you go
directly to the bank yourself, you don't get that financial
advice on your individual situation.
Speaker 2 (05:47):
It does feel a little I still can't work out
the logic around why, if you have more equity you
should get a cheaper rate, because surely the risks to
the bank is assessed already. Why should you have to
pay more for your money. I still struggle with that
(06:10):
a bit, even if I get it explained to me
in great detail.
Speaker 4 (06:12):
Yeah, it's usually a higher interest rate if you've got
less than twenty percent, right, or twenty percent equity as
a homeowner, So if you if you purchased your home
with less than twenty percent and now you've got twenty
percent equity, it's worth talking to your mortgage advisor and
getting that discount applied because they don't have to keep
that on there forever.
Speaker 2 (06:33):
Well, probably if you have bought it with less than
twenty percent equity, it's probably, of course you have quite
a significant income, which means that they're not so worried
about your lack of equity, was it all?
Speaker 4 (06:44):
No, home buyers can get lending at ninety percent and
new builds up to ninety five percent for homeowners, so
you know, you don't have to have a twenty percent
deposit to purchase a home. But there are the low
equity margins and lenders mortgage insurance that can apply as well.
So as soon as you got twenty percent equity, it's
definitely worth getting that adjusted.
Speaker 2 (07:06):
Actually, we've had Antonio Watson, the CEO of the ANZ,
on the show before for a whole Now I might
have to grill her about that one. You have to
get her in again and griller about that. Come on, So, yeah,
what do you reckon? Oh, one hundred and eighty ten
eighty should the Reserve Bank have gone further? Do you
think they should have gone further? Debbi?
Speaker 4 (07:20):
I mean yeah, I mean, I mean yeah.
Speaker 2 (07:25):
I mean we can have our Christmas wish and say,
of course we should it should have gone further, but
reasonably they could have easily locked another twenty five percent off.
There's no is there any danger in that? Or is
the uncertainty with the American economy and the new presidents
and all that is that cause with the trade thing,
don't people say there's a knock on effect of insecurity
and markets and all that sort of stuff. What does
(07:46):
it mean?
Speaker 4 (07:47):
I think, in my opinion, I think they were a
bit cautious because the next inflation results aren't out until
twenty second of January, and the next economy you know,
the GDP results aren't out till the nineteenth of December.
So that's two key pieces of information that they didn't
have going into this announcement. I mean, in my opinion,
(08:07):
everyone knows the economy stuffed. You know, you just need
to read the headlines about how many businesses are liquidating,
how many people are losing their jobs. So I think
it wouldn't have hurt for them to reduce the ocr
a little bit further than they did. In my opinion,
the way that the way that if the results come
in the way that we would expect them to, that
(08:29):
increases the chance of potentially zero point seventy five reduction
in February.
Speaker 2 (08:35):
It's an interesting calculation to make, isn't it when you
look at the as cheaper for one or two years.
But it's really one of those things just you'd want
to resist that temptation unless you had some sort of
major borrowing, you'd split your mortgage up into different sort
of fact, that would be the one argument for taking
maybe part of your loan for one or two years
(08:56):
and then splitting a shorter part off off of it.
On I don't know, am I making sense? As I
was starting to explain that, I thought, actually, Tim, I'm
not sure I agree with Tom. A bit of a
worry when I start arguing with myself while I'm talking.
Speaker 4 (09:07):
Yeah, well, it does depend on what your overall borrowing
position is. Like, you know, there's some people who own
a few rental properties, so if you've got mortgages on
those as well, then it can be worth looking at
staggering your expiry dates. At the moment, a lot of
people that I'm talking to, a lot of clients that
I'm talking to are choosing the six month rate until
(09:28):
they feel like we're a bit closer to the bottom
of the interest rate cycle, and then they'll lock it
in for long term. It certainly did us pretty well
in the last down ten with the interest rate cycle
when we locked in for five years at two point
five and two point nine to nine percent.
Speaker 2 (09:44):
Don't the interest rates themselves tell us a story though,
about what the banks are anticipating. So when it gets
down to when the short term rate is cheap, often
the long term rate is not as appealing as it
might have been, you know, they start to pop that up.
Speaker 4 (09:58):
Because, Yeah, what we tend to find is that the
OCR has the biggest effect on the short and the
floating rates. The longer term interest rates are more affected
by swap rates and international finance stuff. So yeah, and
swap rates have been an interesting thing to look at recently.
So swap rates were coming down on all aspects, and
(10:23):
then the longer term rates like three, four and five
years started creeping up. But I've noticed they've started coming
down again too, So it might have just been a
bit of a lip.
Speaker 2 (10:32):
Okay, just before you go to our first call, what
do you think the optimum reasonable rate considering what you
as an investor would want to pay versus what's probably
reasonable for the economy and inflation and the Reserve bank
and all the competing interests. What do you think?
Speaker 4 (10:46):
Question?
Speaker 2 (10:47):
Yeah, what do you think the sweet spots? There we go.
That's the expression of.
Speaker 4 (10:50):
Well, so I like to look at what the long
term average is and if we look at the long
term twenty year average interest rate just before the first
COVID case, because don't forget that the reserve being slashed
the OCR after we had our first COVID case, and
that's when we've got interest rates at ridiculously low levels
of like the two and a half and three percent,
(11:13):
three and a half percent, So yeah, that was abnormal.
So excluding that, at the long term average interest rate
is six point three five percent, And is that we've
got rates low that now?
Speaker 2 (11:25):
Well, you see, because that's still yeah, I mean, look,
it's I reckons, isn't it. We all have just a
number that sounds about right, and to me, five point
nine nine sounds about right. I don't know why.
Speaker 4 (11:35):
Yeah, five point nine nines below the average. So you know,
what we tend to do is to look at you know,
if interest rates are above average, then we tend to
look at shorter term rates. If it's below average, then
we tend to look at longer term rates. But because
all indications at the moment are for further OCR cuts, now,
(11:56):
the majority of New Zealanders are picking the six month
or twelve month rates at the moment. If you chose
a five year one you might regret that in six months.
Speaker 2 (12:05):
Uh yes, I would suggest you would. Yeah, okay, we
want your calls. Should they a reserve bank have gone further?
Should the cut have been further? But what's your tactic
from here? Are you going to be like many people
who are thinking, well, hang on a minute. I mean,
as Debbie said in the monetary statement monetary policy statement,
they've talked about cuts of another point or point and
a half, which is really quite quite expansive sort of predictions,
(12:28):
isn't it. So what do you reckon? Should they have
gone further? And should they have gone further sooner? I
eight hundred eighty ten eighty text nine two nine two.
But also what does it mean for your strategy around
your borrowing? If you've got something where you think you've
nailed it, then share it with us.
Speaker 3 (12:42):
I e.
Speaker 2 (12:42):
One hundred and eighty ten eighty. We'll be back in
just a moment. It's coming up to twenty past four
news stalk.
Speaker 3 (12:46):
Si'd be Oh, ever wants money? Could I never want
to work for the money, so I borrow the money
for moment?
Speaker 2 (12:59):
Can you believe I never met her?
Speaker 5 (13:03):
Yes?
Speaker 2 (13:03):
Welcome back. This is we can collect the one Roufradia show.
My guest is Debbie Roberts from Property Apprentice, talking about
the cash rate change that was announced by the Reserve
Bank governor this week. They dropped it down point five
of a percent or fifty basis points, which is the
way they like to put it to four point to
five I believe, and your reaction to it and predictions
and should they have actually gone further? The simple take
(13:23):
on it eight hundred eighty ten eighty Peter High. I'm
all right, how you doing.
Speaker 5 (13:31):
I've got some new team who yeh, buds go work.
Speaker 2 (13:36):
You've got some erebuds on. It is a bit foggy,
but anyway, carry on. What did you want to say?
Speaker 5 (13:42):
I appear my situation. Well, I'm going to tell these
air buds off with me.
Speaker 2 (13:50):
Second, okay, we'll let you take your earbuds off. I'll
actually just just stick there and I'll quickly get a
Debi Robits just before we come back to you. So, Debbie,
of course people know you do from Property Apprentice, and
you do do every now and again. Is it every
week or something? Because it seems more frequent than I
than I remember. You have free seminars for people, yep.
Speaker 4 (14:07):
Every week online and about once a month we do
a free event in our office.
Speaker 2 (14:13):
So yeah, and what what do people do? They just
turn up and you have a chat.
Speaker 4 (14:16):
Well, it pays to register. Yeah, that way we know
how many people to expect. But also, you know, if
we get more than the maximum online, then we could
check in an extra event for those people that weren't
able to attend it.
Speaker 2 (14:30):
Do you get busy before Christmas? It sort of.
Speaker 4 (14:32):
It's really picked up in the last couple of weeks.
It's been quite interesting.
Speaker 2 (14:36):
Cool, right, let's I think we've got Peter. You put
your earbuds away. Hey, you sounding.
Speaker 3 (14:41):
Oh way better?
Speaker 2 (14:43):
There you are? Hello.
Speaker 3 (14:45):
I'll give that a C minus from TV.
Speaker 2 (14:50):
Oh good, idea, fantastic.
Speaker 3 (14:52):
What are you like eighteen bucks? My situation is they're
basically mortgage free. You live in a big house, but
we bought some. We've bought one coming for you know,
will catch it small, one of those Congress slab ones like,
and then we're gonna we're just going to get a
mortgage next week for it near five hundred for another one.
(15:16):
Uh huh. So I don't know what to do, fix
or float. I'm literally going to float. But were you
saying that before the six months rates are higher than
three year rates in a moment.
Speaker 2 (15:29):
Uh, well, no, no, they're not at the moment. But
we were just talking about when things start to bottom
out suddenly the short term rate can look more attractive
than the long term rate because they want you to
fix short all of a sudden, whatever the cheap I
think what we're what I was I was trying to say,
in my layman's way, is that the rate that is
(15:49):
the cheapest is the one they probably want you to avoid.
You'd probably that's right, that's the one they want you
to take, but you might think about avoiding. So what
are your so how much are you borrowing?
Speaker 3 (16:02):
Oh?
Speaker 1 (16:03):
Four?
Speaker 2 (16:04):
Okay, and so you're trying to make a decision as
to whether to float or go six months one year
sort of thing.
Speaker 3 (16:11):
Yeah, I might exploit it, to be honest, I can
pay some catch off anything.
Speaker 5 (16:15):
Yeah.
Speaker 4 (16:16):
The floating interest rates are the highest at the moment,
so they're considerably higher than the six rates. Yeah, but
you know, if you're in a position that you can
comfortably afford that then might not be silly, because chances
are you'll be able to lock in a lower rate
after the February announcement.
Speaker 2 (16:32):
I've got to get my maths right here, though, Peter,
because if you are borrowing, let's say you're borrowing four
hundred thousand, just make it easy and you're paying, so
the floating rate is about, well, what have we got.
Let's have a lock on the one year standard for
A and Z. The standard rate is six point thirty
nine and the floating is seven point thirty nine. So
one whole percent on four hundred thousand is quite a lot.
(16:58):
That's I'm not going to frighten the horses too much,
but it's still money.
Speaker 3 (17:03):
I have a second question as a sort of to this,
I've also got about the similar amount put away and
turned the posit comes out in February. Do you think
I'm looking at buying another unit with that? Or do
you think do you think that's a managers just getting
get a bigger mortgage?
Speaker 2 (17:24):
Well, not specific financially. We will do an disclaimer that
we're not going to give specific financial advice, but that's
just we know we know, Debbie.
Speaker 4 (17:34):
I mean general advice would be that you know it
is a text aductible debt, so it depends on if
you've got profits on off seat. So I'd suggest having
a check to your mortgage advisor and your accountant just
to get the best advice on both sides of the fence.
Speaker 2 (17:49):
Ye, fair enough, Yeah, and uh, well it's good to
know you were fiscally responsible though. Those eighteen dollars team
of earbuds were a good attempt.
Speaker 3 (17:59):
Oh look at that. I got excited until seventy bucks.
So you know I'm not going I'm not gonna. I'm
not going to beg they all stuff up.
Speaker 2 (18:08):
Yeah, Peter, I've got one more question for you. Have
you just decided to get into proper property now? Is
there is this a continuation of a property investment sort
of policy you've.
Speaker 3 (18:17):
Got No, I haven't been in them before. Gonna be asked,
why now right now?
Speaker 2 (18:23):
Do you just think it's time for money? Okay?
Speaker 3 (18:28):
Yeah, I've got some money for my parents, but I've
always looked at never been keen on residential to be honest.
You just I just can't get it to work. Okay,
So awkard for six fifty. You know what's the return?
You only get about four hundred bucks a week after
paying body corporate and great.
Speaker 2 (18:50):
So what sort of property is that you're buying?
Speaker 3 (18:53):
Commercial? There there's like these new concrete slab buildings forty
to one hundred square meters. Say, it's just basically a
shell some of amazanine.
Speaker 2 (19:04):
And call it okay, cool, And you've and in an
area where you think you're not going to have a
problem letting it.
Speaker 3 (19:11):
Yeah, I mean it's in West wester sorrys them. The
good luck on both of them. Both of them have
been i'd.
Speaker 2 (19:19):
Have oh, good, well done, good on you. Okay, thanks
for it.
Speaker 3 (19:24):
Turns are much better as well.
Speaker 2 (19:25):
Well, Actually, I tell you what he has raised a
question I've always wondered about. Thanks Peter. You know, that
feels like it involves a lot more courage commercial property.
Speaker 4 (19:36):
I mean, the risks are a bit higher with commercial
cash flow does tend to be stronger. But yeah, these
pros and cons for both. You know, people always need
somewhere to live, but they don't always need a premises
to run their business out of so and economic downturns,
I mean, look at how many vacant office spaces there
are at the moment.
Speaker 2 (19:56):
Well, that's why I thought it was. On the face
of it, it's quite a sort of bold move. But
it sounds like he's got tenants already lined up or something.
And I guess it's because you look around anywhere around
New Zealand, the number of empty premises I would have
thought been commercial landlord would feel to the average punter
quite a dicey proposition.
Speaker 5 (20:14):
Yeah.
Speaker 4 (20:14):
I mean, the fact that he's got cash to put
into it is a huge help. So yeah, because that's
going to keep his costs down a little bit in
times of vacancy.
Speaker 2 (20:23):
So good on them.
Speaker 4 (20:25):
Right for everyone, No, but some people it works really well.
Speaker 2 (20:28):
We want your cause on eight hundred and eighty ten
to eighty, your take on the interest rate. But the
other question, which actually sort of ties into it as well,
is that, over the course of doing the property our,
the wonder if Raddy your show over the last few years.
For many of those years, I would say that property
it's always felt like the thing that people were either
(20:51):
in or they thought they should be in as an
investor if they could. And one of the questions I
had was that because basically the be all and end
all of investments for many Kiwis, and it has been
for a long time, and it does feel at the moment,
and maybe that's because of economic uncertainty and unemployment and
inflation and all the sorts of things unsure uncertainty, and
(21:13):
the economy is not rock and rolling, does it. Is
it a fair comment to say that it's not quite
the center of attention as it once was, and it's
that might persist for a little longer.
Speaker 4 (21:24):
I think this is a perfectly normal stage of the
property cycle. So you know, it's called a buyer's market.
And I've said this before, it's a buyer's market. The
clues in the name a lot. There's a lot lot,
but there are a lot more sellers than buyers at
the moment, so the opportunities are there. You can take
your time with negotiating, you can get better deals in
(21:46):
the current market. So this is the stage where serious
investors often start to step back in because the downside
of a buyer's market is that lending is usually the challenge,
you know, getting lending because banks are risk averse, so
they tighten up their lending criteria when we when we're
going through a bit of a downturn in the property market.
(22:08):
So if you can get lending, it's a great time
to be out there buying. And I'm saying this. You know,
we don't sell property, but it is. It's a great
time to be out there buying because the opportunities are there.
Peter was right. Cash flow is not as easy to
find as it was, you know, in the global financial crisis,
for example. But we're seeing the best yields that we've
(22:29):
seen in years, well over.
Speaker 2 (22:31):
Five years, sorry, the best yields and what.
Speaker 4 (22:33):
Best rental returns? And over five years?
Speaker 2 (22:37):
Really?
Speaker 4 (22:38):
Yeah? Why not lying?
Speaker 3 (22:42):
No?
Speaker 2 (22:43):
No, no, I don't mean really as and I don't
believe you, but it's why do I what is so
much of the rhetoric around it talk about oh, well
the returns are you talking about the gross returns rather
than the returns before you take into account what you're
paying on your mortgage and all.
Speaker 4 (23:00):
That sort of so either way, you know, net returns,
gross yield, net yeard, Yeah, they're all affected, but absolutely
the highest yields that we've seen in a long time.
And it's because house prices have dropped and now they're
pretty stable. But rents have also been increasing and they's
stable now in a lot of parts of the country
(23:20):
as well. But you know, when prices come down and
rents increase, we see those rental routines start to climb.
Back up.
Speaker 2 (23:28):
I think also when you said five years, I forget that.
It's actually like, it's almost five years since we got COVID,
isn't it. Yeah, so maybe that's not as surprising because
we have been through a very tumultuous time over the
past five years. In fact, that has actually quite a
shock to me when I think, what was it when
did COVID hit?
Speaker 3 (23:46):
Was it? Oh?
Speaker 2 (23:48):
My goodness, it is five years criky. That's a bit frightening. Yeah,
eight hundred and eighty ten eighty.
Speaker 5 (23:53):
Yeah.
Speaker 2 (23:53):
I mean, does that if you're listening, does that signal
to you that this is the time when we're all
going to look back and you're going to say, oh,
I remember that time when it was really quiet. That
was probably the time I should have been marshaling my
troops and sort of working out what my plan was.
And I realized that for people who haven't got their
first house yet, they're talking about investment property, is well,
we're not just talking about investment property, which about any
(24:14):
sort of property.
Speaker 4 (24:15):
I'm to buy home, you know, I mean, look at
how much choice you've got out there at the moment.
There's you know, there's plenty of listings to choose from
and you don't have to feel pressured to purchase. So yeah,
the opportunities are there. And my opinion is, I mean,
I don't know when the property market's going to boom.
No one does. I'm certainly not expecting it to happen
(24:35):
until the economy starts to really recover because at the moment,
a lot of people are still worried about their jobs,
you know. So I think once the economy is a
lot stronger, we will start seeing more and more people
entering into the property market, and that's when we're going
to see prices start increasing, and that's when people will
go should have could have woulder, should.
Speaker 2 (24:56):
Have could have water water, could have shoulder.
Speaker 4 (24:58):
Yeah, but we get that all the time, you know.
And this is something else that I say a lot
as well. I've every day we meet investors that say,
you know, I wish we'd started ten years ago. I've
never met an investor that said I wish i'd waited.
Speaker 2 (25:14):
No. In fact, I'd say even people who buy their
first time, ah well, I mean, if you bought your
first time and your mortgage, I wonder if there is
a time when you'd ever regret buying a property that's
an interesting question, be interesting to hear from people. I
guess the question would be, if you've got regret is
that you didn't plan for the contingency that might have
been for something that was lying ahead, which is not
always easy to predict.
Speaker 4 (25:35):
Sometimes there's unforeseen circumstances, you know, Like I mean, people
could say that they regret purchasing at the peak of
the boom, you know, just before the property values.
Speaker 2 (25:44):
I feel that would suck, that would be.
Speaker 4 (25:46):
Honest, that would feel like a kick in the guts.
But you only lose money and property if you sell
it for less than you paid for it. And home buyers,
if they purchased at the peak of the boom, they
might not have been able to get lending when prices
dropped down.
Speaker 2 (25:59):
Yeah, that's one of the things people forget, isn't it
That the equation is never as simple. It's not exactly
the same every time, and you've just bought at the
high market the other side of it, as people would
remind us back in the days when those ridiculous eighteen
percent you know, whatever it was, the seventies or eighties.
Speaker 5 (26:16):
But the.
Speaker 2 (26:18):
Houses were a lot cheaper. But there's always that well, okay,
houses were cheaper, but interest rates were horrendous, and maintaining
it was expensive versus houses are really expensive, but interest
rates are very little. Unfortunately, when it you know, when
it all changed and the interest rates crept up, that's
when people got caught out. Was it ten percent of
is it still ten percent of property sales selling at
(26:38):
a loss? There was some stat recently about that.
Speaker 4 (26:40):
There was drum well, I can't remember. It's definitely reduced.
Speaker 2 (26:44):
We'll drum that one up in the break. But I'm
able to chat with Debi as well about just I
think it'd be useful for people, especially if you're looking
at playing around with fixing short or long term. What
role does the floating rate play and how long should
you play around with maybe just being on the floating
rate for a bit, because I think that's the bit
that is seems terrifying in a way because the floating
(27:07):
can be quite high, But if you do it right,
you might save yourself a bundle. We talked about that
after the break. Excellent, excellent, God, I'm glad you nodded
at that one. Right, will be it's twenty three minutes
to five news talks. It'd be so right, Yes, welcome
(27:36):
back to the week in collective dat don't forget. Shortly
we'll be doing the one reof Property of the week
as well, and it's always they're always gorgeous properties and
when I always advise it that you can take a
little holiday just by checking out our recommendations for Property
of the week. But right now it is the one
Roof Rady Show. My guest is Debbie Roberts, and we're
talking a little bit about the o CR and you know,
it's a constant game, isn't it working out what the
bank Reserve Bank's going to do. They've said they're going
(27:57):
to indicate that they're going to reduce it further. Debbie,
how often should what would your advice or your comments
be around you using the floating rate because it's a
lot more expensive and if you let yourself sit on
the floating rate for too long, you can hemorrhage quite
a bit of money. If you've got any thoughts on
tactics around you know, just maybe waiting a little bit
longer for that or maybe six month versus floating How
(28:19):
do you do those equations?
Speaker 4 (28:20):
Yeah, so there is a calculation that you can use
to work out what's the best thing for you to do.
But generally speaking, I would suggest if you're thinking about floating,
you'd want to be doing that for a very short
time at the moment, because the six month rates are
pretty attractive. You know, we're seeing six month rates below
six percent now, so once you've negotiated. So yeah, so
(28:44):
those are pretty attractive rates, and the difference between that
and the floating rate is quite significant. So I was
talking to a client last week, a couple of clients actually,
and they were on a floating rate because their interest
rates by just a couple of days before the OCR announcement.
So I said to them, let's wait and see where
(29:06):
the banks settle. And you know, they were comfortable on
the floating rate. So it's like, let's wait and see
what happens over the next few days. But that was like,
you know, they're on a floating rate for a few
days as opposed to a few months.
Speaker 3 (29:19):
Yeah.
Speaker 2 (29:20):
I don't know why I felt so when I was
coming off our mortgage was coming up for you know, renewal, refreshment, refreshment,
whatever it is, but yeah, it was coming off its
fixed term. I just felt, really I felt a little
bit for some reason. Intuitively, I just didn't want to
feel I'd flicked onto that floating rate for even a minute.
Is that that's just an illogical thing, isn't it. It
(29:43):
doesn't mean any I.
Speaker 4 (29:44):
Think it's quite common. I think it's quite common. You know,
a lot of people do refix their interest rates before
it expires, so they choose to, you know, accept the
going rate and then have it automatically convert to the
new rate, so instead of going on to a floating
rate first. But I think if you've got lump sums
of cash, for example, like if you've got savings, if
(30:07):
you let it, if you let it float, pay off
a lump some and then refix. You know that there's
no early repayment penalties for doing that. So talk to
your mortgage advisor, is my advice.
Speaker 2 (30:18):
Well, to be honest, the bank was my mortgage advisor,
because my mortgage, you know, I've been we've had it
for a little while, it's come down. And even actually
my mortgage advisor said, look, I mentioned the rate the
bank got offered, and he said, look, that's good enough.
You don't need to worry about me, or you can
just do the deal. And so since then, I've sort
of been a bit more responsible for my own banking,
even though I'm sure I can call him any time
(30:39):
and have a chat.
Speaker 4 (30:40):
I saw an interesting thing recently that said that a
lot of people will think that it costs you to
work with mortgage advisors, and that stunned me. It costs
you nothing to work with a mortgage advisor, but they
work in your best interests. And one of the best
things about mortgage advisors at the moment, in my opinion,
is that the banks are offering cash back deals. So
(31:02):
if it's right for you to refinance to another bank,
you could get up to one percent a cash back deal.
Speaker 2 (31:10):
See, Okay, I'm instantly suspicious.
Speaker 4 (31:15):
Well, there are clawback periods which.
Speaker 2 (31:18):
I'm suspicious thinking you're offering me cash back. Why don't
just offer me something longer term rather than just a
little frivolous thing and precurring to me to go out
and buy a TV or something.
Speaker 4 (31:28):
Yeah, so that well, the cash back deals can be
used for a number of different things. But you know,
one of the benefits of the cash back for the
bank is that it locks you in, so you're not
going to be refinancing within the next three to four
years otherwise you'll have to pay some of that cash
back back. So yeah, it buys your loyalty so to speak,
(31:51):
so you know, but it benefits you as the consumer.
Speaker 2 (31:55):
I guess it swings and roundabout so long as you
know what the deal is and you know what you're
committing to. Yeah, because because nothing, what is it? I
can't mean it some sort of play on musical. There
are plenty of lines in literature about nothing. Nothing comes free,
and it's probably when a cash back, there's always that
extra commitment. And does that mean that you are going
(32:16):
to struggle to get a better rate once you refix
with the bank? Do they?
Speaker 4 (32:20):
No, not at all, So I mean like that, We've
always even before I was accredited as a mortgage advisor,
we've always recommended people work with mortgage advisors because they
work for you. They don't work for the bank. If
you go directly to the bank, you know, it's not
necessarily true that a mortgage advisor might be able to
(32:40):
negotiate you a better rate than what you could negotiate
directly with the bank. But the mortgage advisor can look
at all of the different options for you, and some
banks are better than others for certain situations like if
you're self employed, or if you're a first home buyer,
or if you earn bonuses or commissions, like all the
banks are quite different.
Speaker 2 (33:01):
But of course most mortgage advisors or brokers. What's differ
mortgage advisor a mortgage broker is anything, nothing, nothing.
Speaker 4 (33:08):
They all used to be called mortgage brokers. Now with
the breagage advisor sounds friendlier.
Speaker 2 (33:12):
It just sounds friendly, doesn't It's like, yes, mortgage broker
sounds a bit more, sounds a bit more ruthlessreas mortgage
advisor sounds like have a cup of tea, sit down,
you know, let's have a chat, and yes, we can
help you with that.
Speaker 4 (33:25):
Yeah, I think, I mean, and this is just me
spitballing the reasons why they chose that.
Speaker 2 (33:30):
I was just doing that.
Speaker 4 (33:31):
But I think it was originally used as a term
mortgage broker because the mortgage broker broker the deal. But
now it's all about the financial advice, you know, specific
to you as an individual. So I think that's why
they changed it to mortgage advisor.
Speaker 2 (33:48):
Okay, I had a hot question on that, but I've
completely forgotten it. And in the argument about semantics. So
I've got some texts here. Who pays mortgage brokers?
Speaker 4 (33:57):
Oh, they get paid by the banks.
Speaker 2 (33:59):
And how is that? Yeah? And do they have relationships
with specific banks or everyone different?
Speaker 4 (34:05):
So the banks do very little bit, but not much
as far as how much commission they pay to the
mortgage advisors. Certainly not enough to make a mortgage advisor
pick one bank over another one. So at least I've
never met a mortgage advisor that does that.
Speaker 2 (34:20):
But do mortgage advisors have does each one have a
closer relationship with a couple of banks? Shall we say
all particular arrangement where you put your business through us,
than these are the rates we're going to be able
to offer you type of thing.
Speaker 4 (34:34):
No, no, because mortgage advisors are legally obliged to work
in the best interests of their client, not their best
interests for themselves.
Speaker 2 (34:43):
Oh no, no, no, no, no. What I mean as no,
I guess what I mean is you could still be
acting in the best interests by having a relationship with
a bank where your ongoing relationship with the means you're
going to have fantastic rats to for your customer that
aren't going to.
Speaker 4 (34:58):
Be you know what I mean yeah, no. I think
years ago banks used to have a re aquirement that
mortgage advisors had to submit a certain amount of loans
to each bank in order to keep their bank accreditation.
That does not exist anymore. So now mortgage advisors really
can shop around to get the best deal for the individual.
(35:20):
So you know, and if you go directly to your bank,
they can only give you advice about their stuff.
Speaker 2 (35:25):
Excellent, Right, we're going to come back with the one, well,
the one we've properly the week is next and then
we might be a squeezinger some more texts and maybe
even a call if you give us call on one
hundred eighty ten eighty it's twelve minutes to five news talks.
He'd be sham.
Speaker 1 (35:36):
On the don't imagine now come.
Speaker 2 (35:42):
When will you realize?
Speaker 3 (35:45):
Be in no way?
Speaker 2 (35:52):
Yes, Welcome back to the Weekend Collective Onton BIGE. My
guest is Debbie Roberts. She is an investment coach at
Property Apprentice. You can go to Property Apprentice dot co
dot nz and they have weekly property seminars you can
go and roll for and go and have a listener,
see what they've got to say and take it from there.
But right now it is eight minutes to five.
Speaker 1 (36:11):
The one roof property of the week on the weekend collective.
Speaker 2 (36:15):
I get property envy every time I have a look
at the one roof property of the week, and this
is a perfect example. It is one Chimney Lane, Jack's Point, Queenstown.
Even the name is sort of evocative of something, isn't it,
even if you don't know what it is. It's four bedrooms,
two bathrooms, two car garage. It's two hundred and fifty
square meters house, which is you know, that's a pretty
(36:37):
generous size with an estimated value of around two and
a half million bucks two point six million. It's not
yet two years old. It's a single level, two hundred
and fifty square meter home, as I mentioned, position, beautifully
across an elevated sight, unobstructed views in all directions, catching
all day sun. And it's Debbie. I've shown you a copy,
(37:00):
a link to it. How would you describe the property?
Speaker 4 (37:03):
Stunning views, absolutely stunning views, aren't they? And that outdoor
fire I mean stop it, well, I.
Speaker 2 (37:11):
Mean stop it. I'll put it out. I think it's
probably obligatory if you buy a sort of new wish
property in Queenstown, that you're going to have an outdoor
sort of concrete patio with some sort of pizza oven
or fire there somewhere with a view of the Alps
in the background. But that's the thing that means most
views around Queenstown, unless you're just stuck in a very
(37:33):
unfortunate situation, is just to die for, aren't they? As
they say, fabulous flow out to the superb Chronic Peak. Basically, yeah,
they look straight across from Jack's Point to Chronic Peak.
So if you're in the market for a home in
Jack's Point at Queenstown, go and check it out. Go
to the one roof site. Just look for one Chimney
Lane two point six. Well, you know what, if you
(37:57):
got a bit of cash, buy your lotto ticket.
Speaker 4 (37:59):
You don't very often profile real cheap properties, do you.
Speaker 2 (38:03):
No, we do. But actually, funnily enough, my producer once
put on a property which was actually more expensive than
this one, and she didn't tell me, and as I
was going through it on the show, I was like, well,
this is not as flash as I hoped. And that's
why she was put it in mischievously, because she thought
that the asking price at three million dollars in Auckland
was but much. But it won't bag the property because
(38:24):
they're trying to sell it, so you know, good luck
to them and all that. But yeah, let's get back
to a few texts just before we wrap it up
with only about a couple of minutes to go. One
who's oh, we've dealt with the one about who pays
the mortgage brokers in the end. Look, we're talking about
the ocr it's going to come down further. Yep, we'd
be safe in saying that talk to a financial advisor,
(38:46):
mortgage advisor. But it's unlikely you're going to be fixing
for longer than a year, isn't it.
Speaker 4 (38:51):
I think if you fixed for longer than a year,
you might regret that decision. But it does depend on
what other mortgages you've got going on and what your
situation is. You wouldn't be fixing for over a year
if you were thinking of selling the property, that's of course.
So yeah, there's lots of things to take into account.
Just one other thing I wanted to mention quickly when
I said that we do weekly events, we're taking a
(39:13):
break over Christmas, so yeah, I need a rest. So
we've got two more events before the end of this year,
So if you want to, if you want to get
my own take my opinion on what's happening and update
and all that sort of stuff, then jump online.
Speaker 2 (39:28):
It sounds like you're working. I mean, that's pretty much
like working right up. You've got another couple to go.
See you're taking your step stopping a bit week in
a bit before Christmas. I guess.
Speaker 4 (39:36):
Yeah, then we take a few weeks off.
Speaker 2 (39:38):
When are you back in action next year?
Speaker 4 (39:39):
Middle of January?
Speaker 2 (39:41):
Oh well, I mean that's almost like the stats plus
a few, isn't it.
Speaker 4 (39:44):
I know?
Speaker 2 (39:45):
Yeah, well, good on. Ye Hey, thanks so much for it.
Thanks so much for being part of the show too.
And you have bought my producer and I a little
bit of a treat for Christmas. So probably I don't
think it'll make Christmas start. It'll be gone by the
end of the end of the weekend.
Speaker 4 (39:57):
I'd say it wouldn't last twenty four hours in my house.
Speaker 2 (40:00):
Actually, just one quick question. We've got about a minute
to go with the seminars. Do do they generally sort
of on a similar theme or do you just sort
of mix some matches you go with the when people
are doing the introductory sort of stuff.
Speaker 4 (40:12):
I update them every week, so they do change from
week to week. But you know, I do tend to
redo them at least once a year, so start from scratch,
you know, mix it up a little bit.
Speaker 2 (40:23):
So good stuff. Hey, you have a merry Christmas? Can
we is it too soon for that tomorrow week?
Speaker 4 (40:30):
Say you've got Christmas decorations out?
Speaker 2 (40:32):
All we do? That's right way? Hey, thanks very much.
That properly apprentice dot co dot nz. You can go
and check out the hour of course. Look look for
the Weekend Collective podcast on iHeartRadio. Next as the Parents
Squad Katherine Burkett is joining us about how much stress
you should allow your kids to have and also managing
(40:52):
their commitments. Back soon.
Speaker 1 (40:57):
For more from the Weekend Collective. Listen live to news
Talks it'd be weekends from three pm, or follow the
podcast on iHeartRadio and
You're listening to the Weekend Collective podcast from News Talks
EDB We Can.
Speaker 2 (00:14):
We Specious, we Can Build.
Speaker 3 (00:22):
Suspicious.
Speaker 2 (00:26):
Yes, welcome back. This is the Weekend Collective. I'm Tim Beverage.
By the way, I'm still sort of slightly recovering from
the panel with Wilhelmina Shrimpton and Neva reading money. Great
fun and if you missed it, you can go and
check it out. Look for the Weekend Collective on iHeartRadio
or wherever you get your podcasts of course as well.
But now it is time for the one roof radio show.
And my guest is an investment coach at Property and Prentice.
(00:49):
She's very familiar to most of my listeners unless you're
brand new. And it's Debbie Roberts today. Debbie, how are
you going.
Speaker 4 (00:55):
I'm doing great. Thanks for having me.
Speaker 2 (00:58):
You've actually you're just telling me you've been recovering from
the sort of flu of all flues.
Speaker 4 (01:03):
I know, the dreaded leg What wish i'd had that flu?
Jab missed it.
Speaker 2 (01:08):
It's funny. It's one of those things, isn't it. People
say colds and flues and they go sniff, sniff, I've
got a cold and it's like, well do you feel
like living? They go, yeah, say you've got a cold,
inlet the flu, because when you get the flu, it's horrendous.
So I'm glad you made it in.
Speaker 4 (01:19):
Well done, I survived.
Speaker 2 (01:21):
Yeah. Hey, look now, look, we've all heard now that
the Reserve Bank has cut the fifty basis points. There
was some talk earlier on of it being a bigger cut.
Quite a few arguments being made for points seventy five
or even one whole point, and there'll be those be
wondering whether this is the time to fix. For a
longer term, that might not be the best option. I
(01:44):
would say, there's obviously still more to come. But you
have look look at you. You haven't got a copy
of the Monetary policy statement. You've done it's in color,
and see as you've found through it, you've highlighted bits.
Is Actually, here's a simple question. What we all wait
for is what's a cut by? What do you learn
(02:06):
from actually reading the statement?
Speaker 5 (02:08):
Oh?
Speaker 4 (02:08):
You learn heats and same with watching the media releases
and things like that afterwards. So one of the things
that caught my eye was that their planning or their
projections are to reduce the ocr by another one to
one point five before the end of next year by
another one, so one hundred to one hundred and fifty
(02:30):
bases points from here, from.
Speaker 2 (02:32):
Here or from where it was before they saw them here.
So where are we are?
Speaker 4 (02:36):
So okay, that's actually that's quite significant.
Speaker 2 (02:39):
That actually is because what are we It's where four
point twenty five?
Speaker 4 (02:43):
Now four point twenty five.
Speaker 2 (02:45):
I'd struggle to imagine them wanting to go below three.
Speaker 4 (02:48):
Well, there's there's a figure that they say is neutral,
and that's somewhere around the three mark. I can't remember
it off the top of my head. It is in
here highlighted for me.
Speaker 2 (02:59):
That's all right. While you're doing that, you can look
for that, because what am I going to do is
throw to our listeners as well. We want your calls
on O eight one hundred eighty ten eighty. You can
text on nine two nine two. The simple question is
should the RBNST have gone further? And I think you know,
I almost softened up my own opinion of this over
the last week or so because we've got used to
the Reserve Bank Governor Adrian or being conservative with many
(03:21):
of his moves. You might remember, actually here's something to
recall is that probably even in the course of this
year he had not he had talked about keeping the
interest rates where they originally were until next year and
how quickly times time flies and circumstances change. But do
you remember that he was he was literally talking about yeah,
and all of a sudden, what do we know? We're
(03:44):
tumbling and we're going to tumble further. So one eighty
ten eighty should the Reserve Bank have gone further already?
Do you think there's a can you understand why they
might sort of want to eke it down, you know,
in steps, But there have been commentators in the last
few months have said next time he should cut up
by a whole point. And if he's if the statement
itself is saying they're planning to cut further than I
(04:06):
would say fixed for as short as possible at least
not specific financial advice.
Speaker 4 (04:11):
That's not specific financial advice. But I mean even you know,
the banks straight after the announcement started reducing their rates
and now they're competing with each other, so you know,
for market share as well. So it's it's quite interesting
to see what's happening in the interest rates space at
the moment and that is likely to continue.
Speaker 2 (04:30):
Is so much jostling gone since the day it's south
because initially you see an instant reaction because they've got something.
They'll have their plans locked in its depending on what
the rate reluction is right now.
Speaker 4 (04:40):
And some of the banks were reducing before the announcement.
There was one that came out just minutes before the announcement,
it felt like, and then a few others made their
announcements straight afterwards. One of the banks, one of the
main banks, has sort of held out for a little
bit longer. So we're expecting some movement in that space
(05:01):
in the next few days.
Speaker 2 (05:03):
Here's a cynical one. A I'm looking at Z which
is my bank, and the two and three year interest
rates are six point one nine. This is just a
standard one. This isn't without having fantastic levels of equity.
But the six month rate is six point eighty four.
Because you know what that tells us. They know that
we're going to go for short rather than long, or
(05:24):
they're trying to entice us for longer, and they really
think they're going to make money out of us in
the next year or two.
Speaker 4 (05:29):
Yeah, and the advertised rates aren't their actual rates either,
So you know, like mortgage advisors can get you a
better deal than that, And same with probably if you
went directly to the bank yourself. Obviously, if you go
directly to the bank yourself, you don't get that financial
advice on your individual situation.
Speaker 2 (05:47):
It does feel a little I still can't work out
the logic around why, if you have more equity you
should get a cheaper rate, because surely the risks to
the bank is assessed already. Why should you have to
pay more for your money. I still struggle with that
(06:10):
a bit, even if I get it explained to me
in great detail.
Speaker 4 (06:12):
Yeah, it's usually a higher interest rate if you've got
less than twenty percent, right, or twenty percent equity as
a homeowner, So if you if you purchased your home
with less than twenty percent and now you've got twenty
percent equity, it's worth talking to your mortgage advisor and
getting that discount applied because they don't have to keep
that on there forever.
Speaker 2 (06:33):
Well, probably if you have bought it with less than
twenty percent equity, it's probably, of course you have quite
a significant income, which means that they're not so worried
about your lack of equity, was it all?
Speaker 4 (06:44):
No, home buyers can get lending at ninety percent and
new builds up to ninety five percent for homeowners, so
you know, you don't have to have a twenty percent
deposit to purchase a home. But there are the low
equity margins and lenders mortgage insurance that can apply as well.
So as soon as you got twenty percent equity, it's
definitely worth getting that adjusted.
Speaker 2 (07:06):
Actually, we've had Antonio Watson, the CEO of the ANZ,
on the show before for a whole Now I might
have to grill her about that one. You have to
get her in again and griller about that. Come on, So, yeah,
what do you reckon? Oh, one hundred and eighty ten
eighty should the Reserve Bank have gone further? Do you
think they should have gone further? Debbi?
Speaker 4 (07:20):
I mean yeah, I mean, I mean yeah.
Speaker 2 (07:25):
I mean we can have our Christmas wish and say,
of course we should it should have gone further, but
reasonably they could have easily locked another twenty five percent off.
There's no is there any danger in that? Or is
the uncertainty with the American economy and the new presidents
and all that is that cause with the trade thing,
don't people say there's a knock on effect of insecurity
and markets and all that sort of stuff. What does
(07:46):
it mean?
Speaker 4 (07:47):
I think, in my opinion, I think they were a
bit cautious because the next inflation results aren't out until
twenty second of January, and the next economy you know,
the GDP results aren't out till the nineteenth of December.
So that's two key pieces of information that they didn't
have going into this announcement. I mean, in my opinion,
(08:07):
everyone knows the economy stuffed. You know, you just need
to read the headlines about how many businesses are liquidating,
how many people are losing their jobs. So I think
it wouldn't have hurt for them to reduce the ocr
a little bit further than they did. In my opinion,
the way that the way that if the results come
in the way that we would expect them to, that
(08:29):
increases the chance of potentially zero point seventy five reduction
in February.
Speaker 2 (08:35):
It's an interesting calculation to make, isn't it when you
look at the as cheaper for one or two years.
But it's really one of those things just you'd want
to resist that temptation unless you had some sort of
major borrowing, you'd split your mortgage up into different sort
of fact, that would be the one argument for taking
maybe part of your loan for one or two years
(08:56):
and then splitting a shorter part off off of it.
On I don't know, am I making sense? As I
was starting to explain that, I thought, actually, Tim, I'm
not sure I agree with Tom. A bit of a
worry when I start arguing with myself while I'm talking.
Speaker 4 (09:07):
Yeah, well, it does depend on what your overall borrowing
position is. Like, you know, there's some people who own
a few rental properties, so if you've got mortgages on
those as well, then it can be worth looking at
staggering your expiry dates. At the moment, a lot of
people that I'm talking to, a lot of clients that
I'm talking to are choosing the six month rate until
(09:28):
they feel like we're a bit closer to the bottom
of the interest rate cycle, and then they'll lock it
in for long term. It certainly did us pretty well
in the last down ten with the interest rate cycle
when we locked in for five years at two point
five and two point nine to nine percent.
Speaker 2 (09:44):
Don't the interest rates themselves tell us a story though,
about what the banks are anticipating. So when it gets
down to when the short term rate is cheap, often
the long term rate is not as appealing as it
might have been, you know, they start to pop that up.
Speaker 4 (09:58):
Because, Yeah, what we tend to find is that the
OCR has the biggest effect on the short and the
floating rates. The longer term interest rates are more affected
by swap rates and international finance stuff. So yeah, and
swap rates have been an interesting thing to look at recently.
So swap rates were coming down on all aspects, and
(10:23):
then the longer term rates like three, four and five
years started creeping up. But I've noticed they've started coming
down again too, So it might have just been a
bit of a lip.
Speaker 2 (10:32):
Okay, just before you go to our first call, what
do you think the optimum reasonable rate considering what you
as an investor would want to pay versus what's probably
reasonable for the economy and inflation and the Reserve bank
and all the competing interests. What do you think?
Speaker 4 (10:46):
Question?
Speaker 2 (10:47):
Yeah, what do you think the sweet spots? There we go.
That's the expression of.
Speaker 4 (10:50):
Well, so I like to look at what the long
term average is and if we look at the long
term twenty year average interest rate just before the first
COVID case, because don't forget that the reserve being slashed
the OCR after we had our first COVID case, and
that's when we've got interest rates at ridiculously low levels
of like the two and a half and three percent,
(11:13):
three and a half percent, So yeah, that was abnormal.
So excluding that, at the long term average interest rate
is six point three five percent, And is that we've
got rates low that now?
Speaker 2 (11:25):
Well, you see, because that's still yeah, I mean, look,
it's I reckons, isn't it. We all have just a
number that sounds about right, and to me, five point
nine nine sounds about right. I don't know why.
Speaker 4 (11:35):
Yeah, five point nine nines below the average. So you know,
what we tend to do is to look at you know,
if interest rates are above average, then we tend to
look at shorter term rates. If it's below average, then
we tend to look at longer term rates. But because
all indications at the moment are for further OCR cuts, now,
(11:56):
the majority of New Zealanders are picking the six month
or twelve month rates at the moment. If you chose
a five year one you might regret that in six months.
Speaker 2 (12:05):
Uh yes, I would suggest you would. Yeah, okay, we
want your calls. Should they a reserve bank have gone further?
Should the cut have been further? But what's your tactic
from here? Are you going to be like many people
who are thinking, well, hang on a minute. I mean,
as Debbie said in the monetary statement monetary policy statement,
they've talked about cuts of another point or point and
a half, which is really quite quite expansive sort of predictions,
(12:28):
isn't it. So what do you reckon? Should they have
gone further? And should they have gone further sooner? I
eight hundred eighty ten eighty text nine two nine two.
But also what does it mean for your strategy around
your borrowing? If you've got something where you think you've
nailed it, then share it with us.
Speaker 3 (12:42):
I e.
Speaker 2 (12:42):
One hundred and eighty ten eighty. We'll be back in
just a moment. It's coming up to twenty past four
news stalk.
Speaker 3 (12:46):
Si'd be Oh, ever wants money? Could I never want
to work for the money, so I borrow the money
for moment?
Speaker 2 (12:59):
Can you believe I never met her?
Speaker 5 (13:03):
Yes?
Speaker 2 (13:03):
Welcome back. This is we can collect the one Roufradia show.
My guest is Debbie Roberts from Property Apprentice, talking about
the cash rate change that was announced by the Reserve
Bank governor this week. They dropped it down point five
of a percent or fifty basis points, which is the
way they like to put it to four point to
five I believe, and your reaction to it and predictions
and should they have actually gone further? The simple take
(13:23):
on it eight hundred eighty ten eighty Peter High. I'm
all right, how you doing.
Speaker 5 (13:31):
I've got some new team who yeh, buds go work.
Speaker 2 (13:36):
You've got some erebuds on. It is a bit foggy,
but anyway, carry on. What did you want to say?
Speaker 5 (13:42):
I appear my situation. Well, I'm going to tell these
air buds off with me.
Speaker 2 (13:50):
Second, okay, we'll let you take your earbuds off. I'll
actually just just stick there and I'll quickly get a
Debi Robits just before we come back to you. So, Debbie,
of course people know you do from Property Apprentice, and
you do do every now and again. Is it every
week or something? Because it seems more frequent than I
than I remember. You have free seminars for people, yep.
Speaker 4 (14:07):
Every week online and about once a month we do
a free event in our office.
Speaker 2 (14:13):
So yeah, and what what do people do? They just
turn up and you have a chat.
Speaker 4 (14:16):
Well, it pays to register. Yeah, that way we know
how many people to expect. But also, you know, if
we get more than the maximum online, then we could
check in an extra event for those people that weren't
able to attend it.
Speaker 2 (14:30):
Do you get busy before Christmas? It sort of.
Speaker 4 (14:32):
It's really picked up in the last couple of weeks.
It's been quite interesting.
Speaker 2 (14:36):
Cool, right, let's I think we've got Peter. You put
your earbuds away. Hey, you sounding.
Speaker 3 (14:41):
Oh way better?
Speaker 2 (14:43):
There you are? Hello.
Speaker 3 (14:45):
I'll give that a C minus from TV.
Speaker 2 (14:50):
Oh good, idea, fantastic.
Speaker 3 (14:52):
What are you like eighteen bucks? My situation is they're
basically mortgage free. You live in a big house, but
we bought some. We've bought one coming for you know,
will catch it small, one of those Congress slab ones like,
and then we're gonna we're just going to get a
mortgage next week for it near five hundred for another one.
(15:16):
Uh huh. So I don't know what to do, fix
or float. I'm literally going to float. But were you
saying that before the six months rates are higher than
three year rates in a moment.
Speaker 2 (15:29):
Uh, well, no, no, they're not at the moment. But
we were just talking about when things start to bottom
out suddenly the short term rate can look more attractive
than the long term rate because they want you to
fix short all of a sudden, whatever the cheap I
think what we're what I was I was trying to say,
in my layman's way, is that the rate that is
(15:49):
the cheapest is the one they probably want you to avoid.
You'd probably that's right, that's the one they want you
to take, but you might think about avoiding. So what
are your so how much are you borrowing?
Speaker 3 (16:02):
Oh?
Speaker 1 (16:03):
Four?
Speaker 2 (16:04):
Okay, and so you're trying to make a decision as
to whether to float or go six months one year
sort of thing.
Speaker 3 (16:11):
Yeah, I might exploit it, to be honest, I can
pay some catch off anything.
Speaker 5 (16:15):
Yeah.
Speaker 4 (16:16):
The floating interest rates are the highest at the moment,
so they're considerably higher than the six rates. Yeah, but
you know, if you're in a position that you can
comfortably afford that then might not be silly, because chances
are you'll be able to lock in a lower rate
after the February announcement.
Speaker 2 (16:32):
I've got to get my maths right here, though, Peter,
because if you are borrowing, let's say you're borrowing four
hundred thousand, just make it easy and you're paying, so
the floating rate is about, well, what have we got.
Let's have a lock on the one year standard for
A and Z. The standard rate is six point thirty
nine and the floating is seven point thirty nine. So
one whole percent on four hundred thousand is quite a lot.
(16:58):
That's I'm not going to frighten the horses too much,
but it's still money.
Speaker 3 (17:03):
I have a second question as a sort of to this,
I've also got about the similar amount put away and
turned the posit comes out in February. Do you think
I'm looking at buying another unit with that? Or do
you think do you think that's a managers just getting
get a bigger mortgage?
Speaker 2 (17:24):
Well, not specific financially. We will do an disclaimer that
we're not going to give specific financial advice, but that's
just we know we know, Debbie.
Speaker 4 (17:34):
I mean general advice would be that you know it
is a text aductible debt, so it depends on if
you've got profits on off seat. So I'd suggest having
a check to your mortgage advisor and your accountant just
to get the best advice on both sides of the fence.
Speaker 2 (17:49):
Ye, fair enough, Yeah, and uh, well it's good to
know you were fiscally responsible though. Those eighteen dollars team
of earbuds were a good attempt.
Speaker 3 (17:59):
Oh look at that. I got excited until seventy bucks.
So you know I'm not going I'm not gonna. I'm
not going to beg they all stuff up.
Speaker 2 (18:08):
Yeah, Peter, I've got one more question for you. Have
you just decided to get into proper property now? Is
there is this a continuation of a property investment sort
of policy you've.
Speaker 3 (18:17):
Got No, I haven't been in them before. Gonna be asked,
why now right now?
Speaker 2 (18:23):
Do you just think it's time for money? Okay?
Speaker 3 (18:28):
Yeah, I've got some money for my parents, but I've
always looked at never been keen on residential to be honest.
You just I just can't get it to work. Okay,
So awkard for six fifty. You know what's the return?
You only get about four hundred bucks a week after
paying body corporate and great.
Speaker 2 (18:50):
So what sort of property is that you're buying?
Speaker 3 (18:53):
Commercial? There there's like these new concrete slab buildings forty
to one hundred square meters. Say, it's just basically a
shell some of amazanine.
Speaker 2 (19:04):
And call it okay, cool, And you've and in an
area where you think you're not going to have a
problem letting it.
Speaker 3 (19:11):
Yeah, I mean it's in West wester sorrys them. The
good luck on both of them. Both of them have
been i'd.
Speaker 2 (19:19):
Have oh, good, well done, good on you. Okay, thanks
for it.
Speaker 3 (19:24):
Turns are much better as well.
Speaker 2 (19:25):
Well, Actually, I tell you what he has raised a
question I've always wondered about. Thanks Peter. You know, that
feels like it involves a lot more courage commercial property.
Speaker 4 (19:36):
I mean, the risks are a bit higher with commercial
cash flow does tend to be stronger. But yeah, these
pros and cons for both. You know, people always need
somewhere to live, but they don't always need a premises
to run their business out of so and economic downturns,
I mean, look at how many vacant office spaces there
are at the moment.
Speaker 2 (19:56):
Well, that's why I thought it was. On the face
of it, it's quite a sort of bold move. But
it sounds like he's got tenants already lined up or something.
And I guess it's because you look around anywhere around
New Zealand, the number of empty premises I would have
thought been commercial landlord would feel to the average punter
quite a dicey proposition.
Speaker 5 (20:14):
Yeah.
Speaker 4 (20:14):
I mean, the fact that he's got cash to put
into it is a huge help. So yeah, because that's
going to keep his costs down a little bit in
times of vacancy.
Speaker 2 (20:23):
So good on them.
Speaker 4 (20:25):
Right for everyone, No, but some people it works really well.
Speaker 2 (20:28):
We want your cause on eight hundred and eighty ten
to eighty, your take on the interest rate. But the
other question, which actually sort of ties into it as well,
is that, over the course of doing the property our,
the wonder if Raddy your show over the last few years.
For many of those years, I would say that property
it's always felt like the thing that people were either
(20:51):
in or they thought they should be in as an
investor if they could. And one of the questions I
had was that because basically the be all and end
all of investments for many Kiwis, and it has been
for a long time, and it does feel at the moment,
and maybe that's because of economic uncertainty and unemployment and
inflation and all the sorts of things unsure uncertainty, and
(21:13):
the economy is not rock and rolling, does it. Is
it a fair comment to say that it's not quite
the center of attention as it once was, and it's
that might persist for a little longer.
Speaker 4 (21:24):
I think this is a perfectly normal stage of the
property cycle. So you know, it's called a buyer's market.
And I've said this before, it's a buyer's market. The
clues in the name a lot. There's a lot lot,
but there are a lot more sellers than buyers at
the moment, so the opportunities are there. You can take
your time with negotiating, you can get better deals in
(21:46):
the current market. So this is the stage where serious
investors often start to step back in because the downside
of a buyer's market is that lending is usually the challenge,
you know, getting lending because banks are risk averse, so
they tighten up their lending criteria when we when we're
going through a bit of a downturn in the property market.
(22:08):
So if you can get lending, it's a great time
to be out there buying. And I'm saying this. You know,
we don't sell property, but it is. It's a great
time to be out there buying because the opportunities are there.
Peter was right. Cash flow is not as easy to
find as it was, you know, in the global financial crisis,
for example. But we're seeing the best yields that we've
(22:29):
seen in years, well over.
Speaker 2 (22:31):
Five years, sorry, the best yields and what.
Speaker 4 (22:33):
Best rental returns? And over five years?
Speaker 2 (22:37):
Really?
Speaker 4 (22:38):
Yeah? Why not lying?
Speaker 3 (22:42):
No?
Speaker 2 (22:43):
No, no, I don't mean really as and I don't
believe you, but it's why do I what is so
much of the rhetoric around it talk about oh, well
the returns are you talking about the gross returns rather
than the returns before you take into account what you're
paying on your mortgage and all.
Speaker 4 (23:00):
That sort of so either way, you know, net returns,
gross yield, net yeard, Yeah, they're all affected, but absolutely
the highest yields that we've seen in a long time.
And it's because house prices have dropped and now they're
pretty stable. But rents have also been increasing and they's
stable now in a lot of parts of the country
(23:20):
as well. But you know, when prices come down and
rents increase, we see those rental routines start to climb.
Back up.
Speaker 2 (23:28):
I think also when you said five years, I forget that.
It's actually like, it's almost five years since we got COVID,
isn't it. Yeah, so maybe that's not as surprising because
we have been through a very tumultuous time over the
past five years. In fact, that has actually quite a
shock to me when I think, what was it when
did COVID hit?
Speaker 3 (23:46):
Was it? Oh?
Speaker 2 (23:48):
My goodness, it is five years criky. That's a bit frightening. Yeah,
eight hundred and eighty ten eighty.
Speaker 5 (23:53):
Yeah.
Speaker 2 (23:53):
I mean, does that if you're listening, does that signal
to you that this is the time when we're all
going to look back and you're going to say, oh,
I remember that time when it was really quiet. That
was probably the time I should have been marshaling my
troops and sort of working out what my plan was.
And I realized that for people who haven't got their
first house yet, they're talking about investment property, is well,
we're not just talking about investment property, which about any
(24:14):
sort of property.
Speaker 4 (24:15):
I'm to buy home, you know, I mean, look at
how much choice you've got out there at the moment.
There's you know, there's plenty of listings to choose from
and you don't have to feel pressured to purchase. So yeah,
the opportunities are there. And my opinion is, I mean,
I don't know when the property market's going to boom.
No one does. I'm certainly not expecting it to happen
(24:35):
until the economy starts to really recover because at the moment,
a lot of people are still worried about their jobs,
you know. So I think once the economy is a
lot stronger, we will start seeing more and more people
entering into the property market, and that's when we're going
to see prices start increasing, and that's when people will
go should have could have woulder, should.
Speaker 2 (24:56):
Have could have water water, could have shoulder.
Speaker 4 (24:58):
Yeah, but we get that all the time, you know.
And this is something else that I say a lot
as well. I've every day we meet investors that say,
you know, I wish we'd started ten years ago. I've
never met an investor that said I wish i'd waited.
Speaker 2 (25:14):
No. In fact, I'd say even people who buy their
first time, ah well, I mean, if you bought your
first time and your mortgage, I wonder if there is
a time when you'd ever regret buying a property that's
an interesting question, be interesting to hear from people. I
guess the question would be, if you've got regret is
that you didn't plan for the contingency that might have
been for something that was lying ahead, which is not
always easy to predict.
Speaker 4 (25:35):
Sometimes there's unforeseen circumstances, you know, Like I mean, people
could say that they regret purchasing at the peak of
the boom, you know, just before the property values.
Speaker 2 (25:44):
I feel that would suck, that would be.
Speaker 4 (25:46):
Honest, that would feel like a kick in the guts.
But you only lose money and property if you sell
it for less than you paid for it. And home buyers,
if they purchased at the peak of the boom, they
might not have been able to get lending when prices
dropped down.
Speaker 2 (25:59):
Yeah, that's one of the things people forget, isn't it
That the equation is never as simple. It's not exactly
the same every time, and you've just bought at the
high market the other side of it, as people would
remind us back in the days when those ridiculous eighteen
percent you know, whatever it was, the seventies or eighties.
Speaker 5 (26:16):
But the.
Speaker 2 (26:18):
Houses were a lot cheaper. But there's always that well, okay,
houses were cheaper, but interest rates were horrendous, and maintaining
it was expensive versus houses are really expensive, but interest
rates are very little. Unfortunately, when it you know, when
it all changed and the interest rates crept up, that's
when people got caught out. Was it ten percent of
is it still ten percent of property sales selling at
(26:38):
a loss? There was some stat recently about that.
Speaker 4 (26:40):
There was drum well, I can't remember. It's definitely reduced.
Speaker 2 (26:44):
We'll drum that one up in the break. But I'm
able to chat with Debi as well about just I
think it'd be useful for people, especially if you're looking
at playing around with fixing short or long term. What
role does the floating rate play and how long should
you play around with maybe just being on the floating
rate for a bit, because I think that's the bit
that is seems terrifying in a way because the floating
(27:07):
can be quite high, But if you do it right,
you might save yourself a bundle. We talked about that
after the break. Excellent, excellent, God, I'm glad you nodded
at that one. Right, will be it's twenty three minutes
to five news talks. It'd be so right, Yes, welcome
(27:36):
back to the week in collective dat don't forget. Shortly
we'll be doing the one reof Property of the week
as well, and it's always they're always gorgeous properties and
when I always advise it that you can take a
little holiday just by checking out our recommendations for Property
of the week. But right now it is the one
Roof Rady Show. My guest is Debbie Roberts, and we're
talking a little bit about the o CR and you know,
it's a constant game, isn't it working out what the
bank Reserve Bank's going to do. They've said they're going
(27:57):
to indicate that they're going to reduce it further. Debbie,
how often should what would your advice or your comments
be around you using the floating rate because it's a
lot more expensive and if you let yourself sit on
the floating rate for too long, you can hemorrhage quite
a bit of money. If you've got any thoughts on
tactics around you know, just maybe waiting a little bit
longer for that or maybe six month versus floating How
(28:19):
do you do those equations?
Speaker 4 (28:20):
Yeah, so there is a calculation that you can use
to work out what's the best thing for you to do.
But generally speaking, I would suggest if you're thinking about floating,
you'd want to be doing that for a very short
time at the moment, because the six month rates are
pretty attractive. You know, we're seeing six month rates below
six percent now, so once you've negotiated. So yeah, so
(28:44):
those are pretty attractive rates, and the difference between that
and the floating rate is quite significant. So I was
talking to a client last week, a couple of clients actually,
and they were on a floating rate because their interest
rates by just a couple of days before the OCR announcement.
So I said to them, let's wait and see where
(29:06):
the banks settle. And you know, they were comfortable on
the floating rate. So it's like, let's wait and see
what happens over the next few days. But that was like,
you know, they're on a floating rate for a few
days as opposed to a few months.
Speaker 3 (29:19):
Yeah.
Speaker 2 (29:20):
I don't know why I felt so when I was
coming off our mortgage was coming up for you know, renewal, refreshment, refreshment,
whatever it is, but yeah, it was coming off its
fixed term. I just felt, really I felt a little
bit for some reason. Intuitively, I just didn't want to
feel I'd flicked onto that floating rate for even a minute.
Is that that's just an illogical thing, isn't it. It
(29:43):
doesn't mean any I.
Speaker 4 (29:44):
Think it's quite common. I think it's quite common. You know,
a lot of people do refix their interest rates before
it expires, so they choose to, you know, accept the
going rate and then have it automatically convert to the
new rate, so instead of going on to a floating
rate first. But I think if you've got lump sums
of cash, for example, like if you've got savings, if
(30:07):
you let it, if you let it float, pay off
a lump some and then refix. You know that there's
no early repayment penalties for doing that. So talk to
your mortgage advisor, is my advice.
Speaker 2 (30:18):
Well, to be honest, the bank was my mortgage advisor,
because my mortgage, you know, I've been we've had it
for a little while, it's come down. And even actually
my mortgage advisor said, look, I mentioned the rate the
bank got offered, and he said, look, that's good enough.
You don't need to worry about me, or you can
just do the deal. And so since then, I've sort
of been a bit more responsible for my own banking,
even though I'm sure I can call him any time
(30:39):
and have a chat.
Speaker 4 (30:40):
I saw an interesting thing recently that said that a
lot of people will think that it costs you to
work with mortgage advisors, and that stunned me. It costs
you nothing to work with a mortgage advisor, but they
work in your best interests. And one of the best
things about mortgage advisors at the moment, in my opinion,
is that the banks are offering cash back deals. So
(31:02):
if it's right for you to refinance to another bank,
you could get up to one percent a cash back deal.
Speaker 2 (31:10):
See, Okay, I'm instantly suspicious.
Speaker 4 (31:15):
Well, there are clawback periods which.
Speaker 2 (31:18):
I'm suspicious thinking you're offering me cash back. Why don't
just offer me something longer term rather than just a
little frivolous thing and precurring to me to go out
and buy a TV or something.
Speaker 4 (31:28):
Yeah, so that well, the cash back deals can be
used for a number of different things. But you know,
one of the benefits of the cash back for the
bank is that it locks you in, so you're not
going to be refinancing within the next three to four
years otherwise you'll have to pay some of that cash
back back. So yeah, it buys your loyalty so to speak,
(31:51):
so you know, but it benefits you as the consumer.
Speaker 2 (31:55):
I guess it swings and roundabout so long as you
know what the deal is and you know what you're
committing to. Yeah, because because nothing, what is it? I
can't mean it some sort of play on musical. There
are plenty of lines in literature about nothing. Nothing comes free,
and it's probably when a cash back, there's always that
extra commitment. And does that mean that you are going
(32:16):
to struggle to get a better rate once you refix
with the bank? Do they?
Speaker 4 (32:20):
No, not at all, So I mean like that, We've
always even before I was accredited as a mortgage advisor,
we've always recommended people work with mortgage advisors because they
work for you. They don't work for the bank. If
you go directly to the bank, you know, it's not
necessarily true that a mortgage advisor might be able to
(32:40):
negotiate you a better rate than what you could negotiate
directly with the bank. But the mortgage advisor can look
at all of the different options for you, and some
banks are better than others for certain situations like if
you're self employed, or if you're a first home buyer,
or if you earn bonuses or commissions, like all the
banks are quite different.
Speaker 2 (33:01):
But of course most mortgage advisors or brokers. What's differ
mortgage advisor a mortgage broker is anything, nothing, nothing.
Speaker 4 (33:08):
They all used to be called mortgage brokers. Now with
the breagage advisor sounds friendlier.
Speaker 2 (33:12):
It just sounds friendly, doesn't It's like, yes, mortgage broker
sounds a bit more, sounds a bit more ruthlessreas mortgage
advisor sounds like have a cup of tea, sit down,
you know, let's have a chat, and yes, we can
help you with that.
Speaker 4 (33:25):
Yeah, I think, I mean, and this is just me
spitballing the reasons why they chose that.
Speaker 2 (33:30):
I was just doing that.
Speaker 4 (33:31):
But I think it was originally used as a term
mortgage broker because the mortgage broker broker the deal. But
now it's all about the financial advice, you know, specific
to you as an individual. So I think that's why
they changed it to mortgage advisor.
Speaker 2 (33:48):
Okay, I had a hot question on that, but I've
completely forgotten it. And in the argument about semantics. So
I've got some texts here. Who pays mortgage brokers?
Speaker 4 (33:57):
Oh, they get paid by the banks.
Speaker 2 (33:59):
And how is that? Yeah? And do they have relationships
with specific banks or everyone different?
Speaker 4 (34:05):
So the banks do very little bit, but not much
as far as how much commission they pay to the
mortgage advisors. Certainly not enough to make a mortgage advisor
pick one bank over another one. So at least I've
never met a mortgage advisor that does that.
Speaker 2 (34:20):
But do mortgage advisors have does each one have a
closer relationship with a couple of banks? Shall we say
all particular arrangement where you put your business through us,
than these are the rates we're going to be able
to offer you type of thing.
Speaker 4 (34:34):
No, no, because mortgage advisors are legally obliged to work
in the best interests of their client, not their best
interests for themselves.
Speaker 2 (34:43):
Oh no, no, no, no, no. What I mean as no,
I guess what I mean is you could still be
acting in the best interests by having a relationship with
a bank where your ongoing relationship with the means you're
going to have fantastic rats to for your customer that
aren't going to.
Speaker 4 (34:58):
Be you know what I mean yeah, no. I think
years ago banks used to have a re aquirement that
mortgage advisors had to submit a certain amount of loans
to each bank in order to keep their bank accreditation.
That does not exist anymore. So now mortgage advisors really
can shop around to get the best deal for the individual.
(35:20):
So you know, and if you go directly to your bank,
they can only give you advice about their stuff.
Speaker 2 (35:25):
Excellent, Right, we're going to come back with the one, well,
the one we've properly the week is next and then
we might be a squeezinger some more texts and maybe
even a call if you give us call on one
hundred eighty ten eighty it's twelve minutes to five news talks.
He'd be sham.
Speaker 1 (35:36):
On the don't imagine now come.
Speaker 2 (35:42):
When will you realize?
Speaker 3 (35:45):
Be in no way?
Speaker 2 (35:52):
Yes, Welcome back to the Weekend Collective Onton BIGE. My
guest is Debbie Roberts. She is an investment coach at
Property Apprentice. You can go to Property Apprentice dot co
dot nz and they have weekly property seminars you can
go and roll for and go and have a listener,
see what they've got to say and take it from there.
But right now it is eight minutes to five.
Speaker 1 (36:11):
The one roof property of the week on the weekend collective.
Speaker 2 (36:15):
I get property envy every time I have a look
at the one roof property of the week, and this
is a perfect example. It is one Chimney Lane, Jack's Point, Queenstown.
Even the name is sort of evocative of something, isn't it,
even if you don't know what it is. It's four bedrooms,
two bathrooms, two car garage. It's two hundred and fifty
square meters house, which is you know, that's a pretty
(36:37):
generous size with an estimated value of around two and
a half million bucks two point six million. It's not
yet two years old. It's a single level, two hundred
and fifty square meter home, as I mentioned, position, beautifully
across an elevated sight, unobstructed views in all directions, catching
all day sun. And it's Debbie. I've shown you a copy,
(37:00):
a link to it. How would you describe the property?
Speaker 4 (37:03):
Stunning views, absolutely stunning views, aren't they? And that outdoor
fire I mean stop it, well, I.
Speaker 2 (37:11):
Mean stop it. I'll put it out. I think it's
probably obligatory if you buy a sort of new wish
property in Queenstown, that you're going to have an outdoor
sort of concrete patio with some sort of pizza oven
or fire there somewhere with a view of the Alps
in the background. But that's the thing that means most
views around Queenstown, unless you're just stuck in a very
(37:33):
unfortunate situation, is just to die for, aren't they? As
they say, fabulous flow out to the superb Chronic Peak. Basically, yeah,
they look straight across from Jack's Point to Chronic Peak.
So if you're in the market for a home in
Jack's Point at Queenstown, go and check it out. Go
to the one roof site. Just look for one Chimney
Lane two point six. Well, you know what, if you
(37:57):
got a bit of cash, buy your lotto ticket.
Speaker 4 (37:59):
You don't very often profile real cheap properties, do you.
Speaker 2 (38:03):
No, we do. But actually, funnily enough, my producer once
put on a property which was actually more expensive than
this one, and she didn't tell me, and as I
was going through it on the show, I was like, well,
this is not as flash as I hoped. And that's
why she was put it in mischievously, because she thought
that the asking price at three million dollars in Auckland
was but much. But it won't bag the property because
(38:24):
they're trying to sell it, so you know, good luck
to them and all that. But yeah, let's get back
to a few texts just before we wrap it up
with only about a couple of minutes to go. One
who's oh, we've dealt with the one about who pays
the mortgage brokers in the end. Look, we're talking about
the ocr it's going to come down further. Yep, we'd
be safe in saying that talk to a financial advisor,
(38:46):
mortgage advisor. But it's unlikely you're going to be fixing
for longer than a year, isn't it.
Speaker 4 (38:51):
I think if you fixed for longer than a year,
you might regret that decision. But it does depend on
what other mortgages you've got going on and what your
situation is. You wouldn't be fixing for over a year
if you were thinking of selling the property, that's of course.
So yeah, there's lots of things to take into account.
Just one other thing I wanted to mention quickly when
I said that we do weekly events, we're taking a
(39:13):
break over Christmas, so yeah, I need a rest. So
we've got two more events before the end of this year,
So if you want to, if you want to get
my own take my opinion on what's happening and update
and all that sort of stuff, then jump online.
Speaker 2 (39:28):
It sounds like you're working. I mean, that's pretty much
like working right up. You've got another couple to go.
See you're taking your step stopping a bit week in
a bit before Christmas. I guess.
Speaker 4 (39:36):
Yeah, then we take a few weeks off.
Speaker 2 (39:38):
When are you back in action next year?
Speaker 4 (39:39):
Middle of January?
Speaker 2 (39:41):
Oh well, I mean that's almost like the stats plus
a few, isn't it.
Speaker 4 (39:44):
I know?
Speaker 2 (39:45):
Yeah, well, good on. Ye Hey, thanks so much for it.
Thanks so much for being part of the show too.
And you have bought my producer and I a little
bit of a treat for Christmas. So probably I don't
think it'll make Christmas start. It'll be gone by the
end of the end of the weekend.
Speaker 4 (39:57):
I'd say it wouldn't last twenty four hours in my house.
Speaker 2 (40:00):
Actually, just one quick question. We've got about a minute
to go with the seminars. Do do they generally sort
of on a similar theme or do you just sort
of mix some matches you go with the when people
are doing the introductory sort of stuff.
Speaker 4 (40:12):
I update them every week, so they do change from
week to week. But you know, I do tend to
redo them at least once a year, so start from scratch,
you know, mix it up a little bit.
Speaker 2 (40:23):
So good stuff. Hey, you have a merry Christmas? Can
we is it too soon for that tomorrow week?
Speaker 4 (40:30):
Say you've got Christmas decorations out?
Speaker 2 (40:32):
All we do? That's right way? Hey, thanks very much.
That properly apprentice dot co dot nz. You can go
and check out the hour of course. Look look for
the Weekend Collective podcast on iHeartRadio. Next as the Parents
Squad Katherine Burkett is joining us about how much stress
you should allow your kids to have and also managing
(40:52):
their commitments. Back soon.
Speaker 1 (40:57):
For more from the Weekend Collective. Listen live to news
Talks it'd be weekends from three pm, or follow the
podcast on iHeartRadio and
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