February 7, 2025 • 41 mins
This week, QV released the average RV data for homes in the capital - a dramatic 24.4% drop in three years.
But how much does your RV really matter?
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talk
sed B.
Speaker 2 (00:11):
Who to lead me down around?
Speaker 3 (00:19):
It worse? The US never wait to see you say,
but I under steal, I near you, I what anyone done?
You don't know from the side.
Speaker 4 (00:34):
So tell me you.
Speaker 5 (00:37):
Don't and welcome back to the show. This is the
one roof radio show. I'm Tim Beveridge as part of
the Weekend Collective. By the way, the Parents Squad Catherine
Burkett with us after five o'clock. You can text your
feedback anytime nine two nine two, but of course these
two hours we can all. We also love to take
your calls on eight hundred and eighty ten eighty and
(00:57):
I say text nine two nine two, But if you
want to jump that queue, then give us a call
eight hundred eighty ten to eighty. Firstly, there've been some
interesting headlines in always interesting headlines on property because of
course that's why they want the interesting headline, so you
get in there and read the article. But there's the
story about Wellington's average RV has dropped twenty four percent
(01:22):
and so the RVs, as you will have heard on
this show, we often talk about them as being whether
you can't rely on them too much. But there's a
massive drop obviously in Wellington doesn't mean your rates are
going to drop, because it's by the way, that's the
first question that will pop up, because it usually means
everyone else has dropped it, and the RV is only
relevant in terms of where you sit as to what
proportion of the rates bill you should pay. But anyway,
(01:44):
it's pretty dramatic in Wellington, and we're going to have
a little bit of a chat on this hour about
whether that means that Wellington's a goodbye right now and
whether it marks itself out as one of those places
which is ready for a bit of a spring. But
more more relevant to everyone is how do you treat
your RV? Do you look at it and go you're
(02:05):
offended if it's not as much as you'd like it
to be, because you'd like it to be higher, But
of course if you want it to be higher, you
also want to pay a little bit more rates. I
once made the mistake. Was it a mistake? I'll ask
our expert on batter introducing a moment of haggling my
RV down, And one of the guests on my show
said we shouldn't have done that, and I said, well,
it was because my rate spill was going to be
(02:26):
more than my neighbors and I did get it successfully
haggled down. Seems that the council's forgotten that they're bumped
it back up again. But anyway, if you are selling
your house, do you want are you concerned if you've
got a low RV and you think, well, hang on
a minute, people who are looking at my property are
going to think I'm I'm overpricing because my RV's not
reflecting what I think it's worth. And so what is
(02:49):
your relationship to your RV? Do you worry about it
and do you haggle it down or do you haggle
it up? But if it's more specifically, if your house
is going on the market, I don't know if anyone
would ever haggle theirs up. But we'll have a chat
about that with financial advisor from property apprentice, Debbi Roberts. Go, afternoon,
how you go good? How are you good? Good? What
have you had a good breakover summer? You've been flat out?
Speaker 2 (03:11):
Oh no, we did have a bit of a break.
It was lovely. Yeah, we enjoyed a bit of good
weather when it was there.
Speaker 5 (03:16):
What's your relationship or your attitude towards RVs.
Speaker 2 (03:21):
Unless you're thinking of selling in the short term, and
it really doesn't make much difference.
Speaker 5 (03:27):
Okay, right bye everyone. That was a great show. What
was I so? For instance, when I when we had
ours come out, and I thought mine was much higher
than my neighbors and we're a block of four units,
Yeah units. I don't like that sound, makes it sound squitty,
but anyway, it's we're one of four, we're the end unit,
(03:49):
same square footage, unless somebody is We've added a couple
of bedrooms downstairs, which may have been what triggered them.
But I did actually write to them and said, look,
we're still renovating. It's not worth that at the moment.
And they did knock a couple of hundred thousand off it.
And the advice I got from one of our guess was, well,
you probably shouldn't have done that, because when you come
(04:09):
to sell it, you may want to rely on the
perceived value being higher than you've got it. What do
you reckon?
Speaker 2 (04:16):
I think that would only be relevant if you were
thinking of selling it within the next three years after
the ratable value was done. And I mean. It's also
important to point out that it's called different things in
different parts of the country. It's not ratable value everywhere,
believe it or not. So some parts of the country
it's called CV for capital value or council value. Other
parts it's GV government valuation.
Speaker 5 (04:37):
It'll be council value, wouldn't it because capital value would
be Oh, that's land plus improvements. Isn't the same thing?
Speaker 2 (04:43):
So called different things. It all means the same stuff.
But yeah, you were right when you said that it's
about the percentage change compared to the other properties in
the area. So if yours increased in comparison to the
others in the area, then yeah, you were able to
argue that down. So that meant that you could have
potentially paid lower rates than you would have other wise.
Speaker 5 (05:05):
The funny thing is because ours is popped up again,
and seriously, one of the two properties next to me
are almost the same and they've got us way over
and I was about to haggle it down. Then I
thought do I really want to do that? But you'd
probably say, well, are you thinking of selling? My answer
is no, yeah, And.
Speaker 2 (05:22):
I mean, at the end of the day, even if
you are thinking of selling a registered valuation will trump
a council valuation every day of the week.
Speaker 5 (05:30):
Okay, do RVs? And I think actually, to be consistent,
I think we call them RVs because I think that's
even what the one roof website does. It just has
its standard RV, which is taking into account whatever the
terminology of the council uses. What role do they play realistically,
because it's not like they're an invisible piece of information
(05:53):
any buyer looks at it. I mean we do it
all the time. We look at the one roof property
of the week and we'll go, oh yeah, oh my goodness,
why they think it's worth an extra million on top
of that?
Speaker 2 (06:02):
Yeah. So one of the things it's probably the most
common question that realistic agents would get asked in an
open home what's the r V? You know, if you
if you listen to what people people are as, they
always ask and you've got to remember RVs get done
once every three years, so even on the day that
they're issued, they're already late, you know, because like the
(06:26):
Wellington one for example, that was three months ago, so
they're already late on the day that they're released. So
they might have been market value at the time, or
they might not have because they don't come around and
look at your property. They don't measure up the property.
They don't, you know, they don't look at the renovations
that you've done. So it really is just a desktop
(06:48):
valuation to estimate the increase compared to others in the area.
Speaker 5 (06:52):
Why you describe that made it sound like you're almost
frustrated that they exist in a way. As a property person,
it's like, are those blooming RVs? What worth are they?
Speaker 2 (07:00):
Anyway, They've got to work out how to divvy up
the rates bills. But it certainly, you know, if you rate,
if your RV drops, it certainly doesn't mean that you're
going to pay less rates.
Speaker 5 (07:10):
Unless you get it dropped after they've done all the.
Speaker 6 (07:15):
Like.
Speaker 5 (07:15):
For instance, the council's redone all its rates. They've said it,
and you oppose yours and you get it lower, well
you will get a lower rates build than you would
have had otherwise, I guess on that.
Speaker 2 (07:25):
Score, yeah, exactly. But I certainly wouldn't be saying to anyone,
you know, go out there and argue about your rates
because you'll pay cheaper rates, because it might not be
cheaper than what you were previously paying. You know, most
I mean most councils across New Zealand they need extra
income coming in from rates because the infrastructure is staffed.
Speaker 5 (07:44):
Does it do they impact things like insurance rates? RV?
Does it impact on insurance? I wouldn't have thought so,
because insurance is about the value of the improvements, isn't it.
Speaker 2 (07:57):
Yeah, as far as I'm aware, it doesn't affect. But
I could be wrong. I'm not an insurance advisor.
Speaker 5 (08:02):
I do know, but you insure properties, maybe yeah.
Speaker 2 (08:05):
Yeah, but I've never thought about that. That's a good question.
Speaker 5 (08:09):
Well, there we go. There's some homework for you. Come
back and have an answer for us. Next time.
Speaker 2 (08:14):
We might have an insurance advisor listening that can phone
us up and.
Speaker 5 (08:16):
Tell us very good call. I wait, one hundred eighty
ten eighty Okay, So if you are, that's confession time.
And I don't know what your answer is to this.
It's not like I'm saying, oh, Debbie's got a confession
for us. But if you are out to look at
a property, are you one of those people who despite
you know, we can all theoretically say, oh, RV doesn't matter.
(08:36):
It's what the property's worth, it's what somebody's prepared to
pay for it. It's what the capital improvements and all
that sort of thing are. But are you do you
follow that yourself? Or if you were looking at buying
a particular property, would you still be saying to the
real estate agent as you walk in the door, Hey,
I see you've got a value of such and such
on this. What's the RV? By the way, hm?
Speaker 2 (08:57):
Would you don't think I've ever asked a realistic agent that,
certainly not in the last twenty years. Maybe in the
early days, I was really hoping that before I understood how,
I was really.
Speaker 7 (09:08):
Just hoping for a touch of hypocrisy. But you know how,
it's because it's still a piece of information. And if
you were looking at other properties in the neighborhood, and
you're looking at similar ones, you might be curious, Say,
if there were two or three properties all sort of
similar in the neighborhood, I would want to know what
the RV was, because I would be curious as to
why three seemingly identical houses. Say I'm looking for a
(09:31):
three bedroom villa somewhere in the similar neighborhood, they've all
got similar amount of land square footage, if one had
a drastically different RV, does that would you be curious?
Speaker 2 (09:44):
So something that I would consider. But I mean i'd
normally know that information before I went and looked at
a property anyway. I don't mean to sound obnoxious.
Speaker 5 (09:52):
No, Actually, as I was asking that, I'll be honest people.
As I was asking dB, I was thinking dB would
go in knowing what the value of that property was. Anyway,
you'd be aware of what you could probably rent it
for if you wanted to. If you're running the property apprentice,
you probably go and knowing a few things, won't you.
Speaker 2 (10:08):
One would hope, run would hope. But yeah, sometimes it's
useful to see to see where recent sales have been
in comparison to the RVs, because if RV's as a whole,
if properties on average are selling five percent below RV,
that gives you an indication, or if they're selling ten
percent above RV, that can give you a bit of
(10:30):
an indication, but it's.
Speaker 5 (10:31):
Not Is that more of a macro view?
Speaker 2 (10:33):
Yeah, absolutely, So you're just looking at.
Speaker 5 (10:35):
The entire market. And so where Nick gord Or from
core Logicon, and he'd probably say, well, statistically, we noticed
that the last hundred properties that's sold in Wellington or
something all sold at five percent RV. It's a useful
statistical I can't even say statistical statistical. There we are. Hey,
let's take some calls on this. Do you care about
RV and have you ever haggled it down? Or here's
(10:58):
a strange one. Have you ever haggled it up? Because
you wanted people to walk in the door and go,
how much is the RV?
Speaker 6 (11:03):
Oh?
Speaker 5 (11:03):
I better go and find some more money for your property. Allen, Hello, Yes.
Speaker 4 (11:09):
That happening. I'm nenver really worried too much about the
RVs because I used to sell real estate and it
didn't really affect the sales in any way that I
could imagine. And the sales salesmen and real estate have
got a really good grip on the market generally if
they've been in the game for a couple of years.
(11:29):
But my question is we're an upper heart. We're just
suffered a twenty percent increase in rates up there, and
it's going to go and do the same thing again
this year. And the excuse is, you know, they've got
infrastructure and all this ru Blani that they talk about
really they're just getting the extra money. I thought to
(11:51):
pop up this new Wellington water thing that they're running,
and it's just a new way of getting money.
Speaker 5 (11:57):
But what's there only way of getting money? Isn't it
just about Well?
Speaker 4 (12:01):
No, see all these all these new bills that around Opperhart,
and there are many, they never mentioned how much money
they're getting out of those rates for those new properties
and all the extra money that they get when you
subdivide a property. So how do you find all that
information out?
Speaker 5 (12:21):
DEMI over to you.
Speaker 2 (12:22):
That is a very good question and again another question
that I don't know the answer to. So, yeah, but
you're absolutely right. With all of the new developments going on,
and especially since a lot of the new developments have
been one or two bedroom properties, I think it's no
surprise that a number of areas have had a significant
decrease in the RVs because obviously the average rds because
(12:46):
if there's a lot more smaller value properties with smaller land,
then that would drag the average down. But yeah, you
would think that if there were more properties, more rate
payers for those properties, then that would spread the load
a little bit further.
Speaker 5 (13:04):
Alan, can I just ask, as a former real estate agent.
You were saying that most of the real start agents
have a very good idea what properties are worth. How
often were you surprised in the course of your career
with what someone paid for a property where you thought, well,
it's probably worth half a million, and all of a sudden's.
Speaker 4 (13:19):
Like what yeah, once or twice, yeah, but never never,
Like we've just come through a great, big charade really
about how much properties were. We all knew that was
going to blow up in our faces and it started
to now. But you know, some people did well out
of it, and I'm very pleased to see that because
(13:42):
I'm elderly now. Some people an orphan made a lot
of money out of old properties that they paid, you know,
three thousand pounds for way back sixty years ago and
then walked away from their property for one point six
million and they've been Yeah, and they've quite a nice
accommodation and these license your five places. Yeah, and they've
(14:06):
also managed to travel around the world and cruise. That's
what we're supposed to be doing.
Speaker 5 (14:13):
Not got on your hat when do where you are
so we might have to leave it there, but I
appreciate you call. We we want your feedback on this
as well. Do you care about your RV and if so,
why do you care about it? Is it simply because
you are worried about the proportion of the rates bill
that you are shouldering, or is it because you actually
(14:34):
don't like the idea of an RV under selling your house.
Give us a call on one hundred and eighty ten
eighty before we go to the break. I've got one
more question for you, a debbie. It was not just
one for the r but one for one more just
for the moment. Are there times when people are more
cognizant of things like r vs? As you were saying, like,
regardless of what you say in your attitude towards an RV.
(14:56):
You mentioned how people walk in and they say, what's
the r V for this? What's the r V for this?
And I have a feeling that when a market is
a bit flat, that the role of the RV maybe
takes a little bit more presence in the conversation because
when the property is nuts, nobody stops to ask for
the RV because they're just like, Oh, what's this going
to go for? They've done all their research. But in
(15:18):
a flat market, people start going, I don't know, what's
what's the RV on this? I don't know.
Speaker 2 (15:22):
My experience has been that people ask the RV. I mean,
I'm not a real estate agent, but my experience in
certainly looking in open homes and things like that is
that it doesn't matter what the market is doing, people
always ask.
Speaker 5 (15:35):
So yeah, And maybe it's because also a lot of
properties aren't advertised with you know, my property is for
sales for yours for nine hundred thousand dollars. It's my
properties for sales three bedroom, such and such. So they're
grasped for a first piece of information well as what's
the RV.
Speaker 2 (15:52):
I tee interesting story? Well I thought it was interesting.
So a few years ago when the market, yeah, you
tell me if you thought it was all right or not.
But yeah, a few years ago, when the market was
much stronger, I remember having a conversation with a realistic
agent friend of ours, and he was saying that he
had to go around and explain to this couple that
their RV was much higher than the market value for
(16:15):
their property. And I said, oh, is that going to
be an awkward conversation? He said, nap, because I'm going
to advertise it as selling below RV and it's probably
going to sell for more than it's worth.
Speaker 5 (16:26):
Well, that would be interesting if we knew the punchline
did itself for more than it's worth.
Speaker 2 (16:29):
Yeap oh, because what home own is. Don't understand what
this was when the market was booming, so probably twenty twenty,
yeah enough, so you know, people at the time they
were just you know, people don't understand what it means.
So a lot of the time, especially home buyers, they
make their decisions based on what they think of facts,
(16:50):
and people know that RVs have got something to do
with value.
Speaker 5 (16:53):
Yeah, because as someone who's not experienced in real estate,
I'll be honest, if I was going to look at
a house, I would look at the RV just to
simply have a starting point for going because obviously if
I went and saw a place and it's like, okay,
two million bucks, I'll be like, okay, well I'm not
in I'm not in the hunt. And that she probably
plays into the first time I ever inquired about property
in Melbourne and they used to the real estate agents
(17:16):
would be and this wasn't back and it was less
than two hundred thousand dollars, was it, or maybe a
little bit over, so it's a while ago. I probably
should have bought it now because be with a fortune now.
But I went in and I said to the reader
state agent, I said, so, what's what's the sort of
asking range for this? And he said, I don't know
what he said. Let's pretend he said two hundred and
(17:37):
fifty thousand dollars and I actually looked him in the eye.
I said, okay, I said, I've heard this a few
times now, and it turns out the property has been
selling a lot more more. This is my budget? Am
I in? And he said, no, you're wasting your time
And I thought, thank you for your honesty, because but
that was Australia, a different situation. But yeah, so that's
for me. The starting point would still be what's the IV.
(18:00):
I didn't even know that at the time.
Speaker 2 (18:01):
Yeah, I would suggest if anyone's looking for a starting point,
what you need to do is have a look at
other properties that have sold in the area and how
that compares. Because it's public information that's property sold, so
you can find out how much it's sold for Realistic
agents will give you that information as well, so they
can do a comparative market analysis for you. And then
(18:23):
you can use those recent comparable sales to give you
an idea as to what market value is for the
property you're looking at.
Speaker 5 (18:30):
I've got some follow up questions for that, but guess what,
we've got some calls to go to and we've got
to take a quick moment, so we'll be back, and
just to tick, what do you think about RV's how
much attention do you pay them? Eight hundred eighty t
and eighty text nine two nine two will be back,
and just to take My guest is from Property Apprentice.
She's a financial advisor and her name is Debbie Roberts.
Back in the moment, new Stick said, be yes, welcome
(18:50):
back to the one roof radio show on Tim Beverage.
This is my sorry. My guest is Debbie Roberts. She's
a financial advisor at Property Apprentice, talking about the importance
or the lack of importance of the RVE. Your calls.
Eight hundred eighty ten eighty Bob, good afternoon.
Speaker 4 (19:05):
Do it after that.
Speaker 6 (19:07):
The way I've sold my house is I've always put
a registered valuer through first, and my costume needs to
five hundred bucks or whatever whatever. But then then go
to the real estate agent because they come up with
the figures. They do the background. There's no bias in
any direction. They do the background. You then go to
(19:28):
the real estate agents and then you look for one
that's pretty well comes out at the same time as
the registered valuer.
Speaker 5 (19:35):
Well, one who comes up with a similar number you mean, correct.
Speaker 2 (19:40):
Yeah, that's not a stupid strategy at all, because you know,
some real estate agents do what they call buying your listing.
They'll tell you that they'll be able to sell your
house for X amount of dollars and it's way higher
than the actual market value, just to get that listing
under their belt, and then they start, you know, talking
you down from the minute that they get someone through
(20:01):
an open home.
Speaker 5 (20:02):
Actually, that is a great piece of advice too, Bob,
because I I don't think you said it costs a
bit of money, but in this scheme of selling your house,
it's not a big deal. I think that the tough
thing on values was when people were recommending that every house,
as a buyer you went through, you should go get
a value to look at it, and that could become
really expensive for buyers. Couldn't have getting a evaluation here, there,
and everywhere.
Speaker 2 (20:22):
Yeah, we tend to recommend that you get a registered
valuation as part of your due diligence, but that would
be after you headed under contract. But yeah, certainly, I
think you know, maybe instead of just another idea, instead
of paying for a registered valuation, you can ask the
real estate agents to provide statistics on recent sales to
back up what they're suggesting is the is the market value?
Speaker 5 (20:45):
How many houses have you bought and sold?
Speaker 6 (20:47):
Bob Okay, I've done about four and each time I've
done it, I turned around and some are being way
up and a lot of them have been way down.
And I've turned around and picked one that you know,
and then you feel you feel happy with it and
love some of them coming with them about say five
(21:09):
thousand dollars with straight away they you know what I mean.
And I'll turn around and sold with them a fortnite
and I've done that good stuff.
Speaker 5 (21:18):
Did you get a nice surprise with any of them
after the when you actually sold them for a hell
of a lot more?
Speaker 6 (21:24):
No, we it was, you know, they sort of they
they read the market. They can do the market. Some
of them will actually only look at the market of
what they've sold with in the area, but register value.
We'll look across right across the board of what everyone
is sold within the area.
Speaker 2 (21:44):
Absolutely, and it's good to get a valuer that knows
the area, you know, that does a lot of work
and a lot of valuations in the area, because if
they're from out of zone or out of the area,
then their market knowledge is a bit lacking as well.
So sometimes it does come down to the quality of
the valuer.
Speaker 5 (22:00):
Good thanks for your core, Bob, really appreciate it.
Speaker 8 (22:02):
Brent, Hello, High, there there's been some interesting discussions. I'd
have to say I haven't had a great deal of
joy with registered valuation registered valuers. They they really only
have the information that in more recent times we can
(22:23):
also obtain, you know, through sites like one roof et cetera.
So we can generally find quite easily what the sales
have been in the area and come to a reasonable
sort of figure. But as far as the RVs go,
I generally object to. I've got a number of properties.
I object to the ones that are that are a
(22:44):
little bit high, And on my own home in Green Lane,
I saved seven hundred dollars a year in rate to
get my evaluation back to a more reasonable figure.
Speaker 5 (22:58):
How did you what did you say to get it down?
How did you how did you make your point?
Speaker 8 (23:04):
You just have a look what's so in the area,
and I'm not And you certainly don't pack the very
best ones like you packed the ones that are possibly
slightly a bit more ordinary than yours. But they don't
go out. But they don't go out, and they don't visit.
And in fact, for the first time ever, one of
them wanted to come out and have a look at
the house. And it was like about a seventeen year
(23:27):
old youth turned up in an old Honda Civic and
had a quick clock around and was gone A seven
hundred dollars. I mean, you know, pay for a holiday.
Speaker 1 (23:35):
So fun.
Speaker 8 (23:37):
So yeah, but the you know, because of one site
type und ruth Conca, you can actually get very good
sales evidence now it's it's quite handy ready, But yeah,
you know, And the only time I believe of those
TV might backfire on you is I think some of
the payouts from earthquake and war damages, et cetera can
(24:01):
be on RVs or cvs.
Speaker 5 (24:04):
Have I had a text about that. I actually don't
know the answer to that, but yeah, that has been
a flag that someone has raised.
Speaker 8 (24:12):
Yeah, so we have to be careful about that. But
you know, we don't have very many natural disasters in
New Zealand, so it's all good.
Speaker 5 (24:18):
Oh hell being ironic there, Brent, I think. Yeah, yeah,
keep an eye on that. Rang Potato started smoking away. Hey,
thanks for got mate.
Speaker 2 (24:32):
I tell you something something that we've found really useful
with registered valuations. I mean sometimes sometimes the buyers will
need one in order to get finance, but in our
experience times that it's been really useful is to get
a registered valuation done before a renovation, so you can
say to the valuer, you know, what do you think
(24:52):
we could do that's going to increase the value on
this property more than what it's going to cost us.
And valuers that know the area know what is going
to increase the value by, so you know, get that
before and after.
Speaker 5 (25:05):
You know, that's that was quite a good hint from Brent.
There wasn't. If you want to haggle your property down,
find something that max matches the description in your area
and find out that the ones that are a bit crappy, Yeah,
that have solved for a bit less. If you really
seven hundred bucks. You know it's not to be sniffed out,
is it. I think my one made. In fact, I
think I've checked the difference between what I'm paying to
(25:26):
what my neighbors are paying, and it's four or five
hundred bucks a year, which maybe I should write that letter.
Speaker 2 (25:32):
Now you just told them what now you just told them,
well they can.
Speaker 5 (25:36):
What my neighbors. Yeah, well they won't mind. They'll be
happy they're paying a bit less, I imagine. But anyway,
where are we off to? Let's go to Andrew Hello.
Speaker 9 (25:47):
Yeah, there, I just want to understand I think, firstly,
the difference between rates and GV.
Speaker 10 (25:58):
Sorry I'm been living abroad.
Speaker 5 (26:00):
For some time.
Speaker 9 (26:01):
Uh but yeah, I'm in Wellington and I.
Speaker 10 (26:05):
Always see.
Speaker 1 (26:09):
Was it the r V the r V.
Speaker 10 (26:11):
I always say that the r V go.
Speaker 9 (26:14):
Up every year, so for the market's dropped, So I
don't I don't quite get it.
Speaker 2 (26:21):
Okay, yeah, so rateable values can increase or decrease depending
on what the market's done in the previous three years.
So you know, with where we're at at the moment,
it's no surprise that some areas are going to have
a drop in the rateable valuation. Doesn't mean that your
rates bill is going to decrease. But yeah, I think
(26:42):
one of the biggest reasons that r vs have dropped
in a number of areas is because of the number
of new developments with smaller sections and smaller properties that
will that will bring the average down across the board.
If that makes sense.
Speaker 9 (26:57):
Well, I did the thing and uh later and argued,
because you know the rates, the counsel rates are going
to the RUTH they came round and they increase the RV.
Speaker 5 (27:14):
Ah, Well that, I guess you've got to be prepared
for that. I can imagine that. In fact, I think
the French, no, that's all, that's all right. I've been
learning French for a couple of years. At that nice pronunciation. Thanks.
Actually they do say that. I think they do say
(27:34):
when you aquery your rates that if we review them
there is a chance they could go up. I always
feel that that feels like they're going if you do,
we might pop them up. So maybe you don't want
to query them. But there's no way they could put
mine up. They might put my neighbors up. Actually, that
would imagine that they wouldn't. No, I don't think they can.
Can they If you haven't challenged them anyway, lots of questions.
We'll have more calls after this. It's twenty three minutes
(27:56):
to five news Talk, said b.
Speaker 3 (28:07):
Seve from my love.
Speaker 5 (28:22):
I love a little bit of Dolly and I think
that's Kenny in the background as well, isn't it Dolly
and Kenny bit of items in the stream. And my
guest is Debbie Roberts. I'm Tim Bever. This is the
Weekend Collective's one roof radio show. How important is r
V in the scheme of things to you? Eight hundred
and eighty ten eighty. But also it ties into that
question of just do you use it as a tool
(28:42):
to judge what a property is worth or are you
just like no, throw it out and just do your
own research. It's worth pointing out that earliest caller was
just saying how accessible information is, and I was reflecting
Debbie that information. Think of the old days before the
Internet about gathering information for a property. Yeah, nightmare crazy.
Still people still manage to buy and seldom they David, Hello, Yeah, I.
Speaker 10 (29:07):
Just I'm talking about the property market. Wow, I'm not
I'm not an economous but uh I was the Hackley
City College six form by winner, so I would listen
to me.
Speaker 5 (29:26):
Sorry, what was that I didn't quite cass.
Speaker 10 (29:29):
On the Hackley Committee, College sixth form etno prize winner.
Speaker 5 (29:34):
Oh oh, that's and and has that held you in
good stead in the property market?
Speaker 10 (29:40):
It certainly does, certainly does. But I think that the
poppy market in your sellers is completely over value by many,
many magnitudes.
Speaker 6 (29:56):
Uh.
Speaker 10 (29:58):
I think that there's a lack of imagination in New Zealand,
and there's also lack of willingness of the banks so
anything up than property, because I think they think it's
pretty safe there. And I think that we've all just
(30:18):
sort of fallen into the tread of wanting to book.
We've all think that we're onto this amazing thing where
you just put all your money into the property and
you're just going to make them. You know, you just
said you can't go wrong. But the thing is, I
think a lot of people, sorry, are you still listening?
Speaker 4 (30:37):
Yeah?
Speaker 5 (30:38):
Absolutely, I literally thinking this is a you're making some
very good points that we're enthralled. Carry on, thank you.
Speaker 8 (30:45):
Thank you.
Speaker 10 (30:46):
I just felt that they they just sort of assume
that you can't go wrong with it. And that's just
because Buffy has gone up, and know you over time
in the last thirty forty years, that it's going to
keep doing that forever. And if you really think about it,
alret he has to go up at the rate of inflation.
(31:08):
They can't really go above that forever, especially if you
consider that the world population has not its probly well, well,
you're actually going.
Speaker 5 (31:25):
Well, I think a lot of yeah, no, no, David.
I think actually there's an interesting point there. I think
we're run past Debbie as well. Is I think what
David's it intuitively sort of makes sense at a point
that we sort of think we need to put all
our money in property. But in the end, when the
rest of the economy and we've got GDP is not growing, ultimately,
if there's not that sense of wealth, I guess within
(31:52):
our economy as we're in sort of recession, does that
actually mean that what David's The point that David's making
is quite a valid one because ultimately it's it always
has to be underpinned by what we're earning and what
we can afford. And if the bottom is sort if
we're feeling about flat as an economy, is the point
is you can't It does make me wonder whether there's
(32:14):
a bit of there is a bit of room to
move in terms of the point that David's making, what
you make of that.
Speaker 2 (32:20):
My opinion is that, you know, property is certainly not
the be all and end all. It's not. There's no
guarantees that it's going to increase, and there's no guarantees
it's going to double in value over the next ten
years just because it might have the last few property cycles.
So certainly share market is performing a lot stronger than
(32:42):
the property market at the moment. But there's different benefits
and you know, so one of the advantages of I mean,
I do financial advice for ki we Saver and share
market as well, so I'm not just focused on property.
But one of the things that I will say is
that property investing has got the benefit of being able
(33:04):
to leverage. So if you can get bank lending, you
don't have to pay cash for the purchase of a property,
and you get the so you could put a deposit
down which could come from equity and another property that
you own you don't have to have cash, and then
you get their increase in capital growth over the entire
value of the property over the long term. Yeah, so
(33:26):
like the long term average increase in share market, you know,
like managed aggressive funds for example, long term average increase
over the last ten years has been about nine point
one percent per year, whereas property is about six point
three percent.
Speaker 5 (33:42):
I'll jump in and ask a question, which might be David's question,
at what point does the ability to leverage sort of
get priced into the market that it becomes Yeah, that's
already part of the equation now, because it was a
time it felt like leverage just made everything a no brainer,
even though beverage with no brains didn't actually do anything
about it. What do you reckon, David?
Speaker 10 (34:02):
Yeah, I do think that leverage is things, but but
I don't know. I used to work in the casino too,
and a lot of that. The way that people talk
about the property, it speriously sounds to me like the
people the punters that are to hear talking about putting
bets on. Oh yeah, hey, looks you know, black casn't
(34:23):
come up in you know, twenty twenty times or whatever.
And honestly, property it can't if you think about it,
like if you think throughout that the the the the
full expense of time, property cannot go up beyond the
(34:46):
rate inflation. It's not a true investment, you know, I
know people think it is that it's not. You know,
you can't get property to produce for properties. You can
buy a business that's going to produce more and more business,
but but property it can in my opinion that it
can only go up earth there's more people wanted to
buy the property and we are going we are getting
(35:10):
towards the time now we at least least being born
into the.
Speaker 5 (35:15):
Okay, yeah, yeah, I take take your point.
Speaker 6 (35:20):
David.
Speaker 5 (35:20):
Hey, thanks so much for calling.
Speaker 2 (35:21):
And it's definitely it's definitely about supply and demand. You know,
so economics one oh one. So you know, the property
market is pretty flat at the moment because it's fairly
balanced between supply and demand. And I mean different parts
of the country will be at different stages of the cycle.
My opinion is that the property market's not going to
start booming until the economy is much strong one.
Speaker 5 (35:44):
I think that's Dan David would agree with you on that.
His point is not the economy is stuffed right now
when people can't expect to property be doing anything great guns,
because we've got we got issues.
Speaker 2 (35:53):
Yeah, if someone's worried that they might lose their job.
They're hardly going to rush out and buy a home,
you know, because.
Speaker 5 (35:59):
Whereas suddenly we started attracting for whatever measures the government
wants to adopt a hell of a lot more O
season investment and saw some growth. Then that's sort of
like the bellows, which can feed other activity, including the property.
Speaker 2 (36:11):
Market, I guess potentially, although having said that, the overseas
investors that might come and they're not likely to be
buying first home.
Speaker 5 (36:18):
And I'm not thinking about the investors. I'm thinking about
them pumping money into businesses from the economy and feeding
more jobs and more growth and all that sort of thing.
And there we get a bit of a anyway question.
It's a fascinating conversation, isn't it. Back in a moment,
we've got the one roof property in the week. By
the way, if your first home buyer, you'll be doing
we'll be buying this one as a first home if
you win the lotto tonight, which I'm going to go
(36:38):
home and draw my own numbers for that. Anyway, back
in just it's eleven to five new Stalk seid b.
Speaker 1 (36:45):
The one roof property of the Week, on the Weekend collective.
Speaker 5 (36:50):
Oh yes, the one roof property of the week people
is something special, but it's not going to be your home.
As a first home buyer, possibly as I looked at it,
I coveted it pretty much every square inch of it.
It is. The address is I'm just in the photo
that moment. Be get better, get out of that. It's
four Cardigan Street. It's an arrow town and as soon
as I saw it was in our town, I thought
(37:11):
this is going to be a beauty, isn't it? And
it's how do I describe it? Let's leave it up
to the description. It says it's elegant, understated facade showcases
bagged schissed stone and cedar. As you step inside. The
ground floor features carpeted four car garage, a perfect for
storing your boat and other recreational toys and style. So
(37:32):
you've got to afford the boat as well. Two space
double bedrooms with on suites in the state of the home,
state of the art home cinema, and it's got an
upper level. It's got a luxurious master suite, walk through wardrobe,
blah blah blah blah blah. It's beautiful Central Itigo it
looks pretty new too, and I'm going to ask Debbie Roberts.
Debbie's checked it out, Debbie, what did you make of
the Home's pretty it's quite pretty. So yeah, four bedrooms,
(37:57):
four bathrooms, four car garaging, three hundred and seventy four
square meter's house, which tells you it's pretty big. It's
got a lovely looking lap paul as well. The property
itself is seven hundred and eighty square meters and it
can be yours for I think they're registered the rating valuation. Okay, no, no,
let's go with the one roof estimate, and we mentioned
(38:18):
run one roof because you can go to the one
roof website and check it out one roof dot curted
In said the one roof estimate with a high level
of accuracy. It reckons. It depends on how much reliable
external data they can access. But it's three point eight
nine million.
Speaker 2 (38:33):
And did you see just under that it's got you
know how I talked about it. It's quite interesting to see
where sails relative to the RV. How timely sales.
Speaker 5 (38:42):
In the suburb over the last twelve months have averaged
thirty one point sevent above RV. So if somebody really
loves it, they reckon. They could go for up to
four and a half and if there's not much in
just three point three. So Debbi, you're gonna pop down
for that one.
Speaker 2 (38:56):
It's a bit big for Paul and I is it
you reckon? Plus we live in Auckland. It's a bit
of a commute to the office.
Speaker 5 (39:05):
Well, you know, I did say probably if you could
afford house like that, you could afford the commute. Just
even out again, just hop on a plane, buy your
own plane. I think there would be something I'd want
to log on my list of expenses would be buying
my own plane so I could fly around the country
as well. So anyway, it's all light eyed territory, isn't it.
Speaker 2 (39:20):
For a helicopter, then you can land it anywhere.
Speaker 5 (39:23):
That's expensive though, that's very expensive.
Speaker 2 (39:25):
Like planes are cheap. What do you think.
Speaker 5 (39:27):
Fixed wing planes a lot cheaper than a helicopter. Anyway, Boy,
isn't that a luxurious conversation to be having. Hey, Debby,
thanks so much. If people want to check out, get
in touch with and find out what you're up to.
You have these free seminars of course, but probably apprentice
dot coded and zip. That's right.
Speaker 2 (39:44):
Yeah, So you go check out the website and register
for one of our free events. They're online, so it
doesn't matter where you live. You can log in.
Speaker 5 (39:50):
Excellent, hey, lovely to see you again and looking well
rested after the holidays. She obviously had an extended holiday,
despite her claims of a very short one. I reckon
anyone does, just kidding. Hey. By the way, again, if
you want that address for that property, you go and
look at in the One Roof website, it's four Cardigan
Street and Aratown, Queenstown. And as I say, even if
(40:11):
you're not in the market to buy, it's like taking
a little visual holiday. You just take yourself and sometimes
it makes people aspirational. Maybe I'll put in a bit
more over time to offend that to afford that place.
That's a lot of overtime kids anyway. Up next it
is the Parents Squad. We're with Catherine Burkett and we're
talking about you know, every kid has his or her quirks.
(40:31):
When should you actually get someone to assess your child
for neuro divergency. We'll be talking about that and other
things on the Parent Squad, which is next. News talk
said be three and a half minutes to five.
Speaker 1 (41:05):
For more from the Weekend Collective, listen live to News
Talk ZEDB weekends from three p m. Or follow the
podcast on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talk
sed B.
Speaker 2 (00:11):
Who to lead me down around?
Speaker 3 (00:19):
It worse? The US never wait to see you say,
but I under steal, I near you, I what anyone done?
You don't know from the side.
Speaker 4 (00:34):
So tell me you.
Speaker 5 (00:37):
Don't and welcome back to the show. This is the
one roof radio show. I'm Tim Beveridge as part of
the Weekend Collective. By the way, the Parents Squad Catherine
Burkett with us after five o'clock. You can text your
feedback anytime nine two nine two, but of course these
two hours we can all. We also love to take
your calls on eight hundred and eighty ten eighty and
(00:57):
I say text nine two nine two, But if you
want to jump that queue, then give us a call
eight hundred eighty ten to eighty. Firstly, there've been some
interesting headlines in always interesting headlines on property because of
course that's why they want the interesting headline, so you
get in there and read the article. But there's the
story about Wellington's average RV has dropped twenty four percent
(01:22):
and so the RVs, as you will have heard on
this show, we often talk about them as being whether
you can't rely on them too much. But there's a
massive drop obviously in Wellington doesn't mean your rates are
going to drop, because it's by the way, that's the
first question that will pop up, because it usually means
everyone else has dropped it, and the RV is only
relevant in terms of where you sit as to what
proportion of the rates bill you should pay. But anyway,
(01:44):
it's pretty dramatic in Wellington, and we're going to have
a little bit of a chat on this hour about
whether that means that Wellington's a goodbye right now and
whether it marks itself out as one of those places
which is ready for a bit of a spring. But
more more relevant to everyone is how do you treat
your RV? Do you look at it and go you're
(02:05):
offended if it's not as much as you'd like it
to be, because you'd like it to be higher, But
of course if you want it to be higher, you
also want to pay a little bit more rates. I
once made the mistake. Was it a mistake? I'll ask
our expert on batter introducing a moment of haggling my
RV down, And one of the guests on my show
said we shouldn't have done that, and I said, well,
it was because my rate spill was going to be
(02:26):
more than my neighbors and I did get it successfully
haggled down. Seems that the council's forgotten that they're bumped
it back up again. But anyway, if you are selling
your house, do you want are you concerned if you've
got a low RV and you think, well, hang on
a minute, people who are looking at my property are
going to think I'm I'm overpricing because my RV's not
reflecting what I think it's worth. And so what is
(02:49):
your relationship to your RV? Do you worry about it
and do you haggle it down or do you haggle
it up? But if it's more specifically, if your house
is going on the market, I don't know if anyone
would ever haggle theirs up. But we'll have a chat
about that with financial advisor from property apprentice, Debbi Roberts. Go, afternoon,
how you go good? How are you good? Good? What
have you had a good breakover summer? You've been flat out?
Speaker 2 (03:11):
Oh no, we did have a bit of a break.
It was lovely. Yeah, we enjoyed a bit of good
weather when it was there.
Speaker 5 (03:16):
What's your relationship or your attitude towards RVs.
Speaker 2 (03:21):
Unless you're thinking of selling in the short term, and
it really doesn't make much difference.
Speaker 5 (03:27):
Okay, right bye everyone. That was a great show. What
was I so? For instance, when I when we had
ours come out, and I thought mine was much higher
than my neighbors and we're a block of four units,
Yeah units. I don't like that sound, makes it sound squitty,
but anyway, it's we're one of four, we're the end unit,
(03:49):
same square footage, unless somebody is We've added a couple
of bedrooms downstairs, which may have been what triggered them.
But I did actually write to them and said, look,
we're still renovating. It's not worth that at the moment.
And they did knock a couple of hundred thousand off it.
And the advice I got from one of our guess was, well,
you probably shouldn't have done that, because when you come
(04:09):
to sell it, you may want to rely on the
perceived value being higher than you've got it. What do
you reckon?
Speaker 2 (04:16):
I think that would only be relevant if you were
thinking of selling it within the next three years after
the ratable value was done. And I mean. It's also
important to point out that it's called different things in
different parts of the country. It's not ratable value everywhere,
believe it or not. So some parts of the country
it's called CV for capital value or council value. Other
parts it's GV government valuation.
Speaker 5 (04:37):
It'll be council value, wouldn't it because capital value would
be Oh, that's land plus improvements. Isn't the same thing?
Speaker 2 (04:43):
So called different things. It all means the same stuff.
But yeah, you were right when you said that it's
about the percentage change compared to the other properties in
the area. So if yours increased in comparison to the
others in the area, then yeah, you were able to
argue that down. So that meant that you could have
potentially paid lower rates than you would have other wise.
Speaker 5 (05:05):
The funny thing is because ours is popped up again,
and seriously, one of the two properties next to me
are almost the same and they've got us way over
and I was about to haggle it down. Then I
thought do I really want to do that? But you'd
probably say, well, are you thinking of selling? My answer
is no, yeah, And.
Speaker 2 (05:22):
I mean, at the end of the day, even if
you are thinking of selling a registered valuation will trump
a council valuation every day of the week.
Speaker 5 (05:30):
Okay, do RVs? And I think actually, to be consistent,
I think we call them RVs because I think that's
even what the one roof website does. It just has
its standard RV, which is taking into account whatever the
terminology of the council uses. What role do they play realistically,
because it's not like they're an invisible piece of information
(05:53):
any buyer looks at it. I mean we do it
all the time. We look at the one roof property
of the week and we'll go, oh yeah, oh my goodness,
why they think it's worth an extra million on top
of that?
Speaker 2 (06:02):
Yeah. So one of the things it's probably the most
common question that realistic agents would get asked in an
open home what's the r V? You know, if you
if you listen to what people people are as, they
always ask and you've got to remember RVs get done
once every three years, so even on the day that
they're issued, they're already late, you know, because like the
(06:26):
Wellington one for example, that was three months ago, so
they're already late on the day that they're released. So
they might have been market value at the time, or
they might not have because they don't come around and
look at your property. They don't measure up the property.
They don't, you know, they don't look at the renovations
that you've done. So it really is just a desktop
(06:48):
valuation to estimate the increase compared to others in the area.
Speaker 5 (06:52):
Why you describe that made it sound like you're almost
frustrated that they exist in a way. As a property person,
it's like, are those blooming RVs? What worth are they?
Speaker 2 (07:00):
Anyway, They've got to work out how to divvy up
the rates bills. But it certainly, you know, if you rate,
if your RV drops, it certainly doesn't mean that you're
going to pay less rates.
Speaker 5 (07:10):
Unless you get it dropped after they've done all the.
Speaker 6 (07:15):
Like.
Speaker 5 (07:15):
For instance, the council's redone all its rates. They've said it,
and you oppose yours and you get it lower, well
you will get a lower rates build than you would
have had otherwise, I guess on that.
Speaker 2 (07:25):
Score, yeah, exactly. But I certainly wouldn't be saying to anyone,
you know, go out there and argue about your rates
because you'll pay cheaper rates, because it might not be
cheaper than what you were previously paying. You know, most
I mean most councils across New Zealand they need extra
income coming in from rates because the infrastructure is staffed.
Speaker 5 (07:44):
Does it do they impact things like insurance rates? RV?
Does it impact on insurance? I wouldn't have thought so,
because insurance is about the value of the improvements, isn't it.
Speaker 2 (07:57):
Yeah, as far as I'm aware, it doesn't affect. But
I could be wrong. I'm not an insurance advisor.
Speaker 5 (08:02):
I do know, but you insure properties, maybe yeah.
Speaker 2 (08:05):
Yeah, but I've never thought about that. That's a good question.
Speaker 5 (08:09):
Well, there we go. There's some homework for you. Come
back and have an answer for us. Next time.
Speaker 2 (08:14):
We might have an insurance advisor listening that can phone
us up and.
Speaker 5 (08:16):
Tell us very good call. I wait, one hundred eighty
ten eighty Okay, So if you are, that's confession time.
And I don't know what your answer is to this.
It's not like I'm saying, oh, Debbie's got a confession
for us. But if you are out to look at
a property, are you one of those people who despite
you know, we can all theoretically say, oh, RV doesn't matter.
(08:36):
It's what the property's worth, it's what somebody's prepared to
pay for it. It's what the capital improvements and all
that sort of thing are. But are you do you
follow that yourself? Or if you were looking at buying
a particular property, would you still be saying to the
real estate agent as you walk in the door, Hey,
I see you've got a value of such and such
on this. What's the RV? By the way, hm?
Speaker 2 (08:57):
Would you don't think I've ever asked a realistic agent that,
certainly not in the last twenty years. Maybe in the
early days, I was really hoping that before I understood how,
I was really.
Speaker 7 (09:08):
Just hoping for a touch of hypocrisy. But you know how,
it's because it's still a piece of information. And if
you were looking at other properties in the neighborhood, and
you're looking at similar ones, you might be curious, Say,
if there were two or three properties all sort of
similar in the neighborhood, I would want to know what
the RV was, because I would be curious as to
why three seemingly identical houses. Say I'm looking for a
(09:31):
three bedroom villa somewhere in the similar neighborhood, they've all
got similar amount of land square footage, if one had
a drastically different RV, does that would you be curious?
Speaker 2 (09:44):
So something that I would consider. But I mean i'd
normally know that information before I went and looked at
a property anyway. I don't mean to sound obnoxious.
Speaker 5 (09:52):
No, Actually, as I was asking that, I'll be honest people.
As I was asking dB, I was thinking dB would
go in knowing what the value of that property was. Anyway,
you'd be aware of what you could probably rent it
for if you wanted to. If you're running the property apprentice,
you probably go and knowing a few things, won't you.
Speaker 2 (10:08):
One would hope, run would hope. But yeah, sometimes it's
useful to see to see where recent sales have been
in comparison to the RVs, because if RV's as a whole,
if properties on average are selling five percent below RV,
that gives you an indication, or if they're selling ten
percent above RV, that can give you a bit of
(10:30):
an indication, but it's.
Speaker 5 (10:31):
Not Is that more of a macro view?
Speaker 2 (10:33):
Yeah, absolutely, So you're just looking at.
Speaker 5 (10:35):
The entire market. And so where Nick gord Or from
core Logicon, and he'd probably say, well, statistically, we noticed
that the last hundred properties that's sold in Wellington or
something all sold at five percent RV. It's a useful
statistical I can't even say statistical statistical. There we are. Hey,
let's take some calls on this. Do you care about
RV and have you ever haggled it down? Or here's
(10:58):
a strange one. Have you ever haggled it up? Because
you wanted people to walk in the door and go,
how much is the RV?
Speaker 6 (11:03):
Oh?
Speaker 5 (11:03):
I better go and find some more money for your property. Allen, Hello, Yes.
Speaker 4 (11:09):
That happening. I'm nenver really worried too much about the
RVs because I used to sell real estate and it
didn't really affect the sales in any way that I
could imagine. And the sales salesmen and real estate have
got a really good grip on the market generally if
they've been in the game for a couple of years.
(11:29):
But my question is we're an upper heart. We're just
suffered a twenty percent increase in rates up there, and
it's going to go and do the same thing again
this year. And the excuse is, you know, they've got
infrastructure and all this ru Blani that they talk about
really they're just getting the extra money. I thought to
(11:51):
pop up this new Wellington water thing that they're running,
and it's just a new way of getting money.
Speaker 5 (11:57):
But what's there only way of getting money? Isn't it
just about Well?
Speaker 4 (12:01):
No, see all these all these new bills that around Opperhart,
and there are many, they never mentioned how much money
they're getting out of those rates for those new properties
and all the extra money that they get when you
subdivide a property. So how do you find all that
information out?
Speaker 5 (12:21):
DEMI over to you.
Speaker 2 (12:22):
That is a very good question and again another question
that I don't know the answer to. So, yeah, but
you're absolutely right. With all of the new developments going on,
and especially since a lot of the new developments have
been one or two bedroom properties, I think it's no
surprise that a number of areas have had a significant
decrease in the RVs because obviously the average rds because
(12:46):
if there's a lot more smaller value properties with smaller land,
then that would drag the average down. But yeah, you
would think that if there were more properties, more rate
payers for those properties, then that would spread the load
a little bit further.
Speaker 5 (13:04):
Alan, can I just ask, as a former real estate agent.
You were saying that most of the real start agents
have a very good idea what properties are worth. How
often were you surprised in the course of your career
with what someone paid for a property where you thought, well,
it's probably worth half a million, and all of a sudden's.
Speaker 4 (13:19):
Like what yeah, once or twice, yeah, but never never,
Like we've just come through a great, big charade really
about how much properties were. We all knew that was
going to blow up in our faces and it started
to now. But you know, some people did well out
of it, and I'm very pleased to see that because
(13:42):
I'm elderly now. Some people an orphan made a lot
of money out of old properties that they paid, you know,
three thousand pounds for way back sixty years ago and
then walked away from their property for one point six
million and they've been Yeah, and they've quite a nice
accommodation and these license your five places. Yeah, and they've
(14:06):
also managed to travel around the world and cruise. That's
what we're supposed to be doing.
Speaker 5 (14:13):
Not got on your hat when do where you are
so we might have to leave it there, but I
appreciate you call. We we want your feedback on this
as well. Do you care about your RV and if so,
why do you care about it? Is it simply because
you are worried about the proportion of the rates bill
that you are shouldering, or is it because you actually
(14:34):
don't like the idea of an RV under selling your house.
Give us a call on one hundred and eighty ten
eighty before we go to the break. I've got one
more question for you, a debbie. It was not just
one for the r but one for one more just
for the moment. Are there times when people are more
cognizant of things like r vs? As you were saying, like,
regardless of what you say in your attitude towards an RV.
(14:56):
You mentioned how people walk in and they say, what's
the r V for this? What's the r V for this?
And I have a feeling that when a market is
a bit flat, that the role of the RV maybe
takes a little bit more presence in the conversation because
when the property is nuts, nobody stops to ask for
the RV because they're just like, Oh, what's this going
to go for? They've done all their research. But in
(15:18):
a flat market, people start going, I don't know, what's
what's the RV on this? I don't know.
Speaker 2 (15:22):
My experience has been that people ask the RV. I mean,
I'm not a real estate agent, but my experience in
certainly looking in open homes and things like that is
that it doesn't matter what the market is doing, people
always ask.
Speaker 5 (15:35):
So yeah, And maybe it's because also a lot of
properties aren't advertised with you know, my property is for
sales for yours for nine hundred thousand dollars. It's my
properties for sales three bedroom, such and such. So they're
grasped for a first piece of information well as what's
the RV.
Speaker 2 (15:52):
I tee interesting story? Well I thought it was interesting.
So a few years ago when the market, yeah, you
tell me if you thought it was all right or not.
But yeah, a few years ago, when the market was
much stronger, I remember having a conversation with a realistic
agent friend of ours, and he was saying that he
had to go around and explain to this couple that
their RV was much higher than the market value for
(16:15):
their property. And I said, oh, is that going to
be an awkward conversation? He said, nap, because I'm going
to advertise it as selling below RV and it's probably
going to sell for more than it's worth.
Speaker 5 (16:26):
Well, that would be interesting if we knew the punchline
did itself for more than it's worth.
Speaker 2 (16:29):
Yeap oh, because what home own is. Don't understand what
this was when the market was booming, so probably twenty twenty,
yeah enough, so you know, people at the time they
were just you know, people don't understand what it means.
So a lot of the time, especially home buyers, they
make their decisions based on what they think of facts,
(16:50):
and people know that RVs have got something to do
with value.
Speaker 5 (16:53):
Yeah, because as someone who's not experienced in real estate,
I'll be honest, if I was going to look at
a house, I would look at the RV just to
simply have a starting point for going because obviously if
I went and saw a place and it's like, okay,
two million bucks, I'll be like, okay, well I'm not
in I'm not in the hunt. And that she probably
plays into the first time I ever inquired about property
in Melbourne and they used to the real estate agents
(17:16):
would be and this wasn't back and it was less
than two hundred thousand dollars, was it, or maybe a
little bit over, so it's a while ago. I probably
should have bought it now because be with a fortune now.
But I went in and I said to the reader
state agent, I said, so, what's what's the sort of
asking range for this? And he said, I don't know
what he said. Let's pretend he said two hundred and
(17:37):
fifty thousand dollars and I actually looked him in the eye.
I said, okay, I said, I've heard this a few
times now, and it turns out the property has been
selling a lot more more. This is my budget? Am
I in? And he said, no, you're wasting your time
And I thought, thank you for your honesty, because but
that was Australia, a different situation. But yeah, so that's
for me. The starting point would still be what's the IV.
(18:00):
I didn't even know that at the time.
Speaker 2 (18:01):
Yeah, I would suggest if anyone's looking for a starting point,
what you need to do is have a look at
other properties that have sold in the area and how
that compares. Because it's public information that's property sold, so
you can find out how much it's sold for Realistic
agents will give you that information as well, so they
can do a comparative market analysis for you. And then
(18:23):
you can use those recent comparable sales to give you
an idea as to what market value is for the
property you're looking at.
Speaker 5 (18:30):
I've got some follow up questions for that, but guess what,
we've got some calls to go to and we've got
to take a quick moment, so we'll be back, and
just to tick, what do you think about RV's how
much attention do you pay them? Eight hundred eighty t
and eighty text nine two nine two will be back,
and just to take My guest is from Property Apprentice.
She's a financial advisor and her name is Debbie Roberts.
Back in the moment, new Stick said, be yes, welcome
(18:50):
back to the one roof radio show on Tim Beverage.
This is my sorry. My guest is Debbie Roberts. She's
a financial advisor at Property Apprentice, talking about the importance
or the lack of importance of the RVE. Your calls.
Eight hundred eighty ten eighty Bob, good afternoon.
Speaker 4 (19:05):
Do it after that.
Speaker 6 (19:07):
The way I've sold my house is I've always put
a registered valuer through first, and my costume needs to
five hundred bucks or whatever whatever. But then then go
to the real estate agent because they come up with
the figures. They do the background. There's no bias in
any direction. They do the background. You then go to
(19:28):
the real estate agents and then you look for one
that's pretty well comes out at the same time as
the registered valuer.
Speaker 5 (19:35):
Well, one who comes up with a similar number you mean, correct.
Speaker 2 (19:40):
Yeah, that's not a stupid strategy at all, because you know,
some real estate agents do what they call buying your listing.
They'll tell you that they'll be able to sell your
house for X amount of dollars and it's way higher
than the actual market value, just to get that listing
under their belt, and then they start, you know, talking
you down from the minute that they get someone through
(20:01):
an open home.
Speaker 5 (20:02):
Actually, that is a great piece of advice too, Bob,
because I I don't think you said it costs a
bit of money, but in this scheme of selling your house,
it's not a big deal. I think that the tough
thing on values was when people were recommending that every house,
as a buyer you went through, you should go get
a value to look at it, and that could become
really expensive for buyers. Couldn't have getting a evaluation here, there,
and everywhere.
Speaker 2 (20:22):
Yeah, we tend to recommend that you get a registered
valuation as part of your due diligence, but that would
be after you headed under contract. But yeah, certainly, I
think you know, maybe instead of just another idea, instead
of paying for a registered valuation, you can ask the
real estate agents to provide statistics on recent sales to
back up what they're suggesting is the is the market value?
Speaker 5 (20:45):
How many houses have you bought and sold?
Speaker 6 (20:47):
Bob Okay, I've done about four and each time I've
done it, I turned around and some are being way
up and a lot of them have been way down.
And I've turned around and picked one that you know,
and then you feel you feel happy with it and
love some of them coming with them about say five
(21:09):
thousand dollars with straight away they you know what I mean.
And I'll turn around and sold with them a fortnite
and I've done that good stuff.
Speaker 5 (21:18):
Did you get a nice surprise with any of them
after the when you actually sold them for a hell
of a lot more?
Speaker 6 (21:24):
No, we it was, you know, they sort of they
they read the market. They can do the market. Some
of them will actually only look at the market of
what they've sold with in the area, but register value.
We'll look across right across the board of what everyone
is sold within the area.
Speaker 2 (21:44):
Absolutely, and it's good to get a valuer that knows
the area, you know, that does a lot of work
and a lot of valuations in the area, because if
they're from out of zone or out of the area,
then their market knowledge is a bit lacking as well.
So sometimes it does come down to the quality of
the valuer.
Speaker 5 (22:00):
Good thanks for your core, Bob, really appreciate it.
Speaker 8 (22:02):
Brent, Hello, High, there there's been some interesting discussions. I'd
have to say I haven't had a great deal of
joy with registered valuation registered valuers. They they really only
have the information that in more recent times we can
(22:23):
also obtain, you know, through sites like one roof et cetera.
So we can generally find quite easily what the sales
have been in the area and come to a reasonable
sort of figure. But as far as the RVs go,
I generally object to. I've got a number of properties.
I object to the ones that are that are a
(22:44):
little bit high, And on my own home in Green Lane,
I saved seven hundred dollars a year in rate to
get my evaluation back to a more reasonable figure.
Speaker 5 (22:58):
How did you what did you say to get it down?
How did you how did you make your point?
Speaker 8 (23:04):
You just have a look what's so in the area,
and I'm not And you certainly don't pack the very
best ones like you packed the ones that are possibly
slightly a bit more ordinary than yours. But they don't
go out. But they don't go out, and they don't visit.
And in fact, for the first time ever, one of
them wanted to come out and have a look at
the house. And it was like about a seventeen year
(23:27):
old youth turned up in an old Honda Civic and
had a quick clock around and was gone A seven
hundred dollars. I mean, you know, pay for a holiday.
Speaker 1 (23:35):
So fun.
Speaker 8 (23:37):
So yeah, but the you know, because of one site
type und ruth Conca, you can actually get very good
sales evidence now it's it's quite handy ready, But yeah,
you know, And the only time I believe of those
TV might backfire on you is I think some of
the payouts from earthquake and war damages, et cetera can
(24:01):
be on RVs or cvs.
Speaker 5 (24:04):
Have I had a text about that. I actually don't
know the answer to that, but yeah, that has been
a flag that someone has raised.
Speaker 8 (24:12):
Yeah, so we have to be careful about that. But
you know, we don't have very many natural disasters in
New Zealand, so it's all good.
Speaker 5 (24:18):
Oh hell being ironic there, Brent, I think. Yeah, yeah,
keep an eye on that. Rang Potato started smoking away. Hey,
thanks for got mate.
Speaker 2 (24:32):
I tell you something something that we've found really useful
with registered valuations. I mean sometimes sometimes the buyers will
need one in order to get finance, but in our
experience times that it's been really useful is to get
a registered valuation done before a renovation, so you can
say to the valuer, you know, what do you think
(24:52):
we could do that's going to increase the value on
this property more than what it's going to cost us.
And valuers that know the area know what is going
to increase the value by, so you know, get that
before and after.
Speaker 5 (25:05):
You know, that's that was quite a good hint from Brent.
There wasn't. If you want to haggle your property down,
find something that max matches the description in your area
and find out that the ones that are a bit crappy, Yeah,
that have solved for a bit less. If you really
seven hundred bucks. You know it's not to be sniffed out,
is it. I think my one made. In fact, I
think I've checked the difference between what I'm paying to
(25:26):
what my neighbors are paying, and it's four or five
hundred bucks a year, which maybe I should write that letter.
Speaker 2 (25:32):
Now you just told them what now you just told them,
well they can.
Speaker 5 (25:36):
What my neighbors. Yeah, well they won't mind. They'll be
happy they're paying a bit less, I imagine. But anyway,
where are we off to? Let's go to Andrew Hello.
Speaker 9 (25:47):
Yeah, there, I just want to understand I think, firstly,
the difference between rates and GV.
Speaker 10 (25:58):
Sorry I'm been living abroad.
Speaker 5 (26:00):
For some time.
Speaker 9 (26:01):
Uh but yeah, I'm in Wellington and I.
Speaker 10 (26:05):
Always see.
Speaker 1 (26:09):
Was it the r V the r V.
Speaker 10 (26:11):
I always say that the r V go.
Speaker 9 (26:14):
Up every year, so for the market's dropped, So I
don't I don't quite get it.
Speaker 2 (26:21):
Okay, yeah, so rateable values can increase or decrease depending
on what the market's done in the previous three years.
So you know, with where we're at at the moment,
it's no surprise that some areas are going to have
a drop in the rateable valuation. Doesn't mean that your
rates bill is going to decrease. But yeah, I think
(26:42):
one of the biggest reasons that r vs have dropped
in a number of areas is because of the number
of new developments with smaller sections and smaller properties that
will that will bring the average down across the board.
If that makes sense.
Speaker 9 (26:57):
Well, I did the thing and uh later and argued,
because you know the rates, the counsel rates are going
to the RUTH they came round and they increase the RV.
Speaker 5 (27:14):
Ah, Well that, I guess you've got to be prepared
for that. I can imagine that. In fact, I think
the French, no, that's all, that's all right. I've been
learning French for a couple of years. At that nice pronunciation. Thanks.
Actually they do say that. I think they do say
(27:34):
when you aquery your rates that if we review them
there is a chance they could go up. I always
feel that that feels like they're going if you do,
we might pop them up. So maybe you don't want
to query them. But there's no way they could put
mine up. They might put my neighbors up. Actually, that
would imagine that they wouldn't. No, I don't think they can.
Can they If you haven't challenged them anyway, lots of questions.
We'll have more calls after this. It's twenty three minutes
(27:56):
to five news Talk, said b.
Speaker 3 (28:07):
Seve from my love.
Speaker 5 (28:22):
I love a little bit of Dolly and I think
that's Kenny in the background as well, isn't it Dolly
and Kenny bit of items in the stream. And my
guest is Debbie Roberts. I'm Tim Bever. This is the
Weekend Collective's one roof radio show. How important is r
V in the scheme of things to you? Eight hundred
and eighty ten eighty. But also it ties into that
question of just do you use it as a tool
(28:42):
to judge what a property is worth or are you
just like no, throw it out and just do your
own research. It's worth pointing out that earliest caller was
just saying how accessible information is, and I was reflecting
Debbie that information. Think of the old days before the
Internet about gathering information for a property. Yeah, nightmare crazy.
Still people still manage to buy and seldom they David, Hello, Yeah, I.
Speaker 10 (29:07):
Just I'm talking about the property market. Wow, I'm not
I'm not an economous but uh I was the Hackley
City College six form by winner, so I would listen
to me.
Speaker 5 (29:26):
Sorry, what was that I didn't quite cass.
Speaker 10 (29:29):
On the Hackley Committee, College sixth form etno prize winner.
Speaker 5 (29:34):
Oh oh, that's and and has that held you in
good stead in the property market?
Speaker 10 (29:40):
It certainly does, certainly does. But I think that the
poppy market in your sellers is completely over value by many,
many magnitudes.
Speaker 6 (29:56):
Uh.
Speaker 10 (29:58):
I think that there's a lack of imagination in New Zealand,
and there's also lack of willingness of the banks so
anything up than property, because I think they think it's
pretty safe there. And I think that we've all just
(30:18):
sort of fallen into the tread of wanting to book.
We've all think that we're onto this amazing thing where
you just put all your money into the property and
you're just going to make them. You know, you just
said you can't go wrong. But the thing is, I
think a lot of people, sorry, are you still listening?
Speaker 4 (30:37):
Yeah?
Speaker 5 (30:38):
Absolutely, I literally thinking this is a you're making some
very good points that we're enthralled. Carry on, thank you.
Speaker 8 (30:45):
Thank you.
Speaker 10 (30:46):
I just felt that they they just sort of assume
that you can't go wrong with it. And that's just
because Buffy has gone up, and know you over time
in the last thirty forty years, that it's going to
keep doing that forever. And if you really think about it,
alret he has to go up at the rate of inflation.
(31:08):
They can't really go above that forever, especially if you
consider that the world population has not its probly well, well,
you're actually going.
Speaker 5 (31:25):
Well, I think a lot of yeah, no, no, David.
I think actually there's an interesting point there. I think
we're run past Debbie as well. Is I think what
David's it intuitively sort of makes sense at a point
that we sort of think we need to put all
our money in property. But in the end, when the
rest of the economy and we've got GDP is not growing, ultimately,
if there's not that sense of wealth, I guess within
(31:52):
our economy as we're in sort of recession, does that
actually mean that what David's The point that David's making
is quite a valid one because ultimately it's it always
has to be underpinned by what we're earning and what
we can afford. And if the bottom is sort if
we're feeling about flat as an economy, is the point
is you can't It does make me wonder whether there's
(32:14):
a bit of there is a bit of room to
move in terms of the point that David's making, what
you make of that.
Speaker 2 (32:20):
My opinion is that, you know, property is certainly not
the be all and end all. It's not. There's no
guarantees that it's going to increase, and there's no guarantees
it's going to double in value over the next ten
years just because it might have the last few property cycles.
So certainly share market is performing a lot stronger than
(32:42):
the property market at the moment. But there's different benefits
and you know, so one of the advantages of I mean,
I do financial advice for ki we Saver and share
market as well, so I'm not just focused on property.
But one of the things that I will say is
that property investing has got the benefit of being able
(33:04):
to leverage. So if you can get bank lending, you
don't have to pay cash for the purchase of a property,
and you get the so you could put a deposit
down which could come from equity and another property that
you own you don't have to have cash, and then
you get their increase in capital growth over the entire
value of the property over the long term. Yeah, so
(33:26):
like the long term average increase in share market, you know,
like managed aggressive funds for example, long term average increase
over the last ten years has been about nine point
one percent per year, whereas property is about six point
three percent.
Speaker 5 (33:42):
I'll jump in and ask a question, which might be David's question,
at what point does the ability to leverage sort of
get priced into the market that it becomes Yeah, that's
already part of the equation now, because it was a
time it felt like leverage just made everything a no brainer,
even though beverage with no brains didn't actually do anything
about it. What do you reckon, David?
Speaker 10 (34:02):
Yeah, I do think that leverage is things, but but
I don't know. I used to work in the casino too,
and a lot of that. The way that people talk
about the property, it speriously sounds to me like the
people the punters that are to hear talking about putting
bets on. Oh yeah, hey, looks you know, black casn't
(34:23):
come up in you know, twenty twenty times or whatever.
And honestly, property it can't if you think about it,
like if you think throughout that the the the the
full expense of time, property cannot go up beyond the
(34:46):
rate inflation. It's not a true investment, you know, I
know people think it is that it's not. You know,
you can't get property to produce for properties. You can
buy a business that's going to produce more and more business,
but but property it can in my opinion that it
can only go up earth there's more people wanted to
buy the property and we are going we are getting
(35:10):
towards the time now we at least least being born
into the.
Speaker 5 (35:15):
Okay, yeah, yeah, I take take your point.
Speaker 6 (35:20):
David.
Speaker 5 (35:20):
Hey, thanks so much for calling.
Speaker 2 (35:21):
And it's definitely it's definitely about supply and demand. You know,
so economics one oh one. So you know, the property
market is pretty flat at the moment because it's fairly
balanced between supply and demand. And I mean different parts
of the country will be at different stages of the cycle.
My opinion is that the property market's not going to
start booming until the economy is much strong one.
Speaker 5 (35:44):
I think that's Dan David would agree with you on that.
His point is not the economy is stuffed right now
when people can't expect to property be doing anything great guns,
because we've got we got issues.
Speaker 2 (35:53):
Yeah, if someone's worried that they might lose their job.
They're hardly going to rush out and buy a home,
you know, because.
Speaker 5 (35:59):
Whereas suddenly we started attracting for whatever measures the government
wants to adopt a hell of a lot more O
season investment and saw some growth. Then that's sort of
like the bellows, which can feed other activity, including the property.
Speaker 2 (36:11):
Market, I guess potentially, although having said that, the overseas
investors that might come and they're not likely to be
buying first home.
Speaker 5 (36:18):
And I'm not thinking about the investors. I'm thinking about
them pumping money into businesses from the economy and feeding
more jobs and more growth and all that sort of thing.
And there we get a bit of a anyway question.
It's a fascinating conversation, isn't it. Back in a moment,
we've got the one roof property in the week. By
the way, if your first home buyer, you'll be doing
we'll be buying this one as a first home if
you win the lotto tonight, which I'm going to go
(36:38):
home and draw my own numbers for that. Anyway, back
in just it's eleven to five new Stalk seid b.
Speaker 1 (36:45):
The one roof property of the Week, on the Weekend collective.
Speaker 5 (36:50):
Oh yes, the one roof property of the week people
is something special, but it's not going to be your home.
As a first home buyer, possibly as I looked at it,
I coveted it pretty much every square inch of it.
It is. The address is I'm just in the photo
that moment. Be get better, get out of that. It's
four Cardigan Street. It's an arrow town and as soon
as I saw it was in our town, I thought
(37:11):
this is going to be a beauty, isn't it? And
it's how do I describe it? Let's leave it up
to the description. It says it's elegant, understated facade showcases
bagged schissed stone and cedar. As you step inside. The
ground floor features carpeted four car garage, a perfect for
storing your boat and other recreational toys and style. So
(37:32):
you've got to afford the boat as well. Two space
double bedrooms with on suites in the state of the home,
state of the art home cinema, and it's got an
upper level. It's got a luxurious master suite, walk through wardrobe,
blah blah blah blah blah. It's beautiful Central Itigo it
looks pretty new too, and I'm going to ask Debbie Roberts.
Debbie's checked it out, Debbie, what did you make of
the Home's pretty it's quite pretty. So yeah, four bedrooms,
(37:57):
four bathrooms, four car garaging, three hundred and seventy four
square meter's house, which tells you it's pretty big. It's
got a lovely looking lap paul as well. The property
itself is seven hundred and eighty square meters and it
can be yours for I think they're registered the rating valuation. Okay, no, no,
let's go with the one roof estimate, and we mentioned
(38:18):
run one roof because you can go to the one
roof website and check it out one roof dot curted
In said the one roof estimate with a high level
of accuracy. It reckons. It depends on how much reliable
external data they can access. But it's three point eight
nine million.
Speaker 2 (38:33):
And did you see just under that it's got you
know how I talked about it. It's quite interesting to see
where sails relative to the RV. How timely sales.
Speaker 5 (38:42):
In the suburb over the last twelve months have averaged
thirty one point sevent above RV. So if somebody really
loves it, they reckon. They could go for up to
four and a half and if there's not much in
just three point three. So Debbi, you're gonna pop down
for that one.
Speaker 2 (38:56):
It's a bit big for Paul and I is it
you reckon? Plus we live in Auckland. It's a bit
of a commute to the office.
Speaker 5 (39:05):
Well, you know, I did say probably if you could
afford house like that, you could afford the commute. Just
even out again, just hop on a plane, buy your
own plane. I think there would be something I'd want
to log on my list of expenses would be buying
my own plane so I could fly around the country
as well. So anyway, it's all light eyed territory, isn't it.
Speaker 2 (39:20):
For a helicopter, then you can land it anywhere.
Speaker 5 (39:23):
That's expensive though, that's very expensive.
Speaker 2 (39:25):
Like planes are cheap. What do you think.
Speaker 5 (39:27):
Fixed wing planes a lot cheaper than a helicopter. Anyway, Boy,
isn't that a luxurious conversation to be having. Hey, Debby,
thanks so much. If people want to check out, get
in touch with and find out what you're up to.
You have these free seminars of course, but probably apprentice
dot coded and zip. That's right.
Speaker 2 (39:44):
Yeah, So you go check out the website and register
for one of our free events. They're online, so it
doesn't matter where you live. You can log in.
Speaker 5 (39:50):
Excellent, hey, lovely to see you again and looking well
rested after the holidays. She obviously had an extended holiday,
despite her claims of a very short one. I reckon
anyone does, just kidding. Hey. By the way, again, if
you want that address for that property, you go and
look at in the One Roof website, it's four Cardigan
Street and Aratown, Queenstown. And as I say, even if
(40:11):
you're not in the market to buy, it's like taking
a little visual holiday. You just take yourself and sometimes
it makes people aspirational. Maybe I'll put in a bit
more over time to offend that to afford that place.
That's a lot of overtime kids anyway. Up next it
is the Parents Squad. We're with Catherine Burkett and we're
talking about you know, every kid has his or her quirks.
(40:31):
When should you actually get someone to assess your child
for neuro divergency. We'll be talking about that and other
things on the Parent Squad, which is next. News talk
said be three and a half minutes to five.
Speaker 1 (41:05):
For more from the Weekend Collective, listen live to News
Talk ZEDB weekends from three p m. Or follow the
podcast on iHeartRadio.
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