April 5, 2025 • 41 mins
Gone are the days of buying an investment property so affordable that the rent covered the mortgage.
But is the golden age of property investment really over - or just on hold?
Ed McKnight from Opes Partners says property can't be a short term investment.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks.
Speaker 2 (00:09):
It'd be.
Speaker 1 (00:17):
My friends, Hello, got a little higher.
Speaker 3 (00:34):
And welcome back. This is the Weekend Collective. I'm Tim Beverage.
By the way, if you missed our wonderful panel with
Brad Olson and Irene Garden, you can go and check
it out wherever you podcasts go. iHeartRadio News Talks. It'd
b look for the Weekend Collective and we get each
hour loaded up pretty quickly after the conclusion of the
after its conclusion, so you should be able to go
on there pretty soon and check it out. But right
now it is time for the one roof radio show.
(00:58):
And actually before I introduce my guests, I'll tell you
what we're going to talk about, because we want your
calls on eight hundred and eighty ten eighty Wilson. Want
to get a text on nine two two. As I say,
you can email to be at Newstalks. He'd beat at
Curtain and Z. But that's generally if you're not an
ARI of course, as I say that, I've just opened
my email now. But we'd love to have your cause.
But the question is I've had some conversations recently with
(01:21):
a range of people who have been involved with property
or you know some people are who are pretty successful.
And with some of them, I was quite surprised to
hear that they had either limited their property investments or
they'd got out altogether and had all their money in
stocks and shares. Mind you, let's be honest, last two
(01:41):
or three days, I could see my guests smiling at me,
going not so smug and OI now with the old
with the tumbling of the Dow Jones industry and all that.
But anyway, but the question is there is a lack
of excitement in a way about the property market. And
I've known people who have gotten and leveraged themselves to
the help in the golden days where they just send
to make money hand over fist and rents for covering
(02:03):
the mortgage and the the capital gains were all there,
if only you were smart enough or not dumb enough
not to do it, you know, speaking for a friend
I myself who watched Hamilton go off. As we know,
Tim Roxburys to tease me about that all the time.
But the question for you is is the golden age
of property investment over or is it just on hold?
(02:25):
Are we just in one of those hiatuses where things
are not that exciting, or do you think we're going
to get back to those days where everyone was fomoing
you through the roof you could pay your mortgage off
with what your rent was that you were getting and
it was just a license to print money? Or was
it ever that easy? So I want your cause on
(02:46):
this is the golden age of property over or just
on hold? And to discuss it, well, he's all over
it himself. He's a resident economist. At Op's partner got
his own podcast as well. From time to time he
likes to tell us about. His name is Ed McKnight.
Hey you great to be here, tim, yep. Is the
golden age of property investment over? So I think this
as I've described.
Speaker 4 (03:06):
I think this golden age of property investment probably is over.
But I think there's going to be another one coming
at some point in the future. Maybe not over the
next year, but at some point. And the reason I
say this age is the property market tends to go
through phases, and those phases, those property cycles tend to
last somewhere between ten to twelve years. And so I
(03:28):
think the kind of boom that we saw coming out
of the GFC property price has kind of bottomed out
around December two thousand and eight, depending on where you
are in the country, and then after a couple of
years of the market just going sideways, we started to
see the market take off. Auckland took off in twenty twelve,
it didn't slow down until about twenty sixteen, and then
(03:49):
COVID came along and pushed it along again. And so
this kind of double boom that we've had, I think
that does put an end to this era of property investment,
But is there going to be another one? And are
the strategies going to change at some point? I think
you'd have to say yes. It's not like property prices
or the property market just stands still for the next
twenty thirty forty years. So it'll be interesting to see
(04:11):
what are those strategies that are going to work. There
are some things that you mentioned that probably are going
to change. The fact that back in the day you
could purchase in an investment property in the rent covered
all of the costs, not just the mortgage, but the rates, maintenance, insurance.
We're just not seeing that at the moment. Most investors
that we work with it open's partners are putting money
into their properties to top up that mortgage or make
(04:34):
sure that the rate spill is covered the good users
with the interest rates coming down at the moment that
number is going down, which is very very good, but
it won't be exactly the same.
Speaker 3 (04:47):
Yeah, So how much of a psychological hurdle is it
that when we went from properties covering their own cost,
basically your rent would pay your mortgage. How much of
a psychological hurdle do you think it is? Now? Where
people go, Okay, I could get in now and the
rent's going to give me this, but my mortgage is
still going to be much more expensive than my rent.
(05:07):
And that's sort of people just the idea of subsidizing
the mortgage is a bit of a turn off to them.
Speaker 4 (05:12):
I have a think for some people it is. And
for those people, I always recommend that they don't just
buy a property off the market and start renting it out.
The main thing they should do in that case is renovate.
Because if you grab a property and you spend five
hundred grand on it and then you invest fifty or
sixty thousand dollars renovating it, adding in a bedroom something
like that, you're often going to see that rent increase,
(05:34):
and so there is a way to make your property's
cash flow neutral, but it requires something from you. It's
either going to be a cash deposit, a renovation, or
you're going to have to say, Okay, I'm just going
to top up the mortgage because I don't like those
first two options.
Speaker 3 (05:46):
So what I'm hearing there is in a way that
the property you can still make a property investment. You
can still make it work, but it might require a
little bit more from you than going, here's the money,
where is my tenant happy days?
Speaker 4 (06:00):
I think that's probably fair. I often see the kind
of three ways that people invest, and all of the
other variation of how people do it kind of flows
from there. The first way is flipping, where you buy
a property, you do it up, and you sell it on.
The good news there is you don't really have to
worry about the mortgage because you're making money from the
property going up in value. The second way is the
(06:21):
renovation side, and I see quite a number of investors.
We used to have a property coaching company actually in
my business, where we would teach people to renovate properties
increase the cash flow. We called it cash flow hacking,
and some of those strategies worth things like adding the
extra bedroom. And often with nineteen seventies properties, nineteen eighties properties,
they might have an extra lounge or an extra dining room.
(06:43):
If you turn that into an extra bedroom, you can
often increase the rent quite substantially. That's a way to
try and make them cash flow neutral. Or for a
lot of investors, they say, well, do you know what,
what's my option? I could either put one hundred or
two hundred dollars a week into shares or I could
put that money into property, And yes, I've got to
top up the mortgage, but at least then I've got
a five hundred or six hundred thousand dollar ASCID and
(07:06):
if that goes up in value, that probably covers pays
me back for that and is not a bad investment.
Speaker 5 (07:12):
Yeah.
Speaker 3 (07:12):
By the way, when we mentioned the sheer market, of
course a few days ago, that that statement almost had
a different meaning. But of course we've seen that massive.
I mean, what is your take when you you know,
nothing exists in a microcosm on its own without effects
on the other. So what we're seeing with the Trump
administration having put on those tariffs what are your feelings
(07:34):
just around what it does for everything economic activity but
also property.
Speaker 4 (07:38):
I think the main thing is just uncertainty and people
being unable to make a decision. I was giving a
presentation to the board of directors at the Real Estate
Institute just not that long ago, and I always kind
of find it quite funny when you've got people who
have got thirty years experience in the industry and I'm
just over thirty years.
Speaker 3 (07:59):
I noticed that humble brag there almost but the reason
sounds very flash.
Speaker 5 (08:05):
Well.
Speaker 4 (08:05):
I don't mean to talk myself up, because I'm just
a country hick from Harwire, as you know, down in
South Tartanaki. But I was speaking to these guys and
one person put up their hand and they said, ed,
the future has never felt so uncertain, you know, And
all of the thirty or forty years that I've been
working in industry, nothing feels very certain at the moment,
(08:27):
and that means that we kind of second guess our decisions.
I think all of the Trump plays and the tariffs
that are coming on at the moment that adds to it.
But it's quite funny because we were talking off here
that my fiance is a financial advisor she deals in shares,
and this kind of investment well blowing me down. We
were just in a car and an uber going down
to Polyfest in South Auckland. Today we're all talking about
(08:48):
how we need to invest even more money in shares
because it looks like an absolute bargain at the moment.
Speaker 3 (08:53):
Well, and this is not, of course we're the one
ref radio show, but that it will be interesting to
see because I have you know that don't look at
your key. We say for people, it won't be good news.
But I sort of feel that whatever happens now is
not forever. But the market must pricen that anticipation as well,
because the market's always quicker than you or I, isn't
(09:14):
it in terms of the reactions and the instant feedback
of information. So that fall you sort of think that
there's always going to be bumps and it's going it'll
recover eventually one perhaps, no matter what happens.
Speaker 4 (09:25):
Would it well, I would expect. So one thing that's
quite interesting is sometimes these ups and downs are less
impacted by institutional investors or people who are managing a
whole heap of funds. Sometimes it is people who are
just regular mum and dads who hold a couple of
shares they get spooked by the tariffs and decide to
sell down. That can provide quite a number of opportunities.
(09:46):
My view is that as long as you're in an
asset for ten years, fifteen years, you don't need to
worry about what's happening. Happening today, I locked into my
key we saver. I think I might be down six
grand compared to last week. That doesn't bother me because
I'm not going to be able to access that money
for another thirty odd years. I'm giving a presentation next
week week actually basically talking about this in the context
(10:07):
of property. So if you purchased a property at the
worst point in the market, let's call it Hamilton, just
because I've got the numbers to hand. So if you
bought it the absolute peak of the market back in
two thousand and seven, a year later you were down
about eleven percent. Three years after the peak of the market,
you were down about thirteen percent. Five years after the
peak of the market, Oh god, we're still about ten
(10:30):
percent down. But ten years after you were forty six
percent up from when you bought.
Speaker 3 (10:34):
So that must have been at that five percent, five
years after the market was the moment that I said
to Tim Rocksborough, Gosh, I reckon, I reckon Hamilton bear go,
well it would have been and just watched it.
Speaker 4 (10:45):
The interesting thing now, fifteen years after the peak of
the market in Hamilton, back after the GFC, prices were
over double. And so if you take a very long
term view of things, you generally are okay. I do
think there is too much market panic, generally speaking, because
we deal with kind of Dan Vesu's a lot. We
(11:06):
see that in my company. But I think the main
thing is if you've made a long term decision, whether
you made it in twenty twenty or twenty twenty one,
if you said this is going to be a fifteen
year decision, you can't base you can't say that was
a good or a bad idea only three years in
you made a fifteen year commitment. See the fifteen year
commitment out most of the time.
Speaker 3 (11:29):
Yeah, so we'd love your cause on this eight hundred
and eighty ten eighty. I was going to say, my
crude way of asking the question, that's just a simple
way of asking the question. Is the golden age of
property over that there was a time in conversation at
the parb, or just over a cup of coffee, where
people would you'd be aware of how much foamo and
how much energy there was enough you can you just
got to get into the propping market. And I just
(11:50):
don't hear that.
Speaker 2 (11:51):
Now.
Speaker 3 (11:52):
Do you think the golden age of property is over?
Or is it just on hold? And if it's just
on hold, will it be what we see in a
golden age like we did see where leverage you'd leverage
yourself up the yin yang your mortgage to cover your rent,
and then a few years later you'd cash up and
buy another couple of properties. Do you think we'll see
(12:12):
those those days again? Eight hundred eighty ten eighty. You
can text on nine two nine two if you have
any questions for Ed McKnight Of course, he's a resident
economist at Opea's partner his partners. You can give us
a call. Eight hundred eighty ten eighty. Will be back
in just a moment. It is nineteen past four news Talks.
Speaker 2 (12:28):
He'd be.
Speaker 3 (12:56):
Yes, welcome back the one roof radio show on the
week in Collective on Ton Beverage. My guest is Ed
Mcnighty's economy, a resident economist at Opea's Partners. We're talking
about that is the guy olden age of property over.
And the question would be, well, I think obviously the
golden age as we've seen in the past is over.
We're in a different phase right now. But will it
return and when or it's the golden age? Just on hold,
(13:18):
so we can take your callse O eight one hundred
and eighty ten eighty text nine to nine two. Let's
go to John.
Speaker 2 (13:27):
Yeah, Hi, I was just thinking, I'm seventy five. Well,
actually i'm seventy six. But when I was young, they
had a government thing that if your income was below
a certain point, you could get a loan from the
Bank of at three percent. Unfortunately, at the time, I
(13:48):
was a couple of dollars a week more than that.
So I went to my bus and I said, hey, listen,
can you cut me wages? And you laughed and said
I can't do that, John, So ihu was and the disadvantage,
but I thought the scheme did help a lot of
people who are on low income. What I see now
is the government absolutely subsidizing the landlord, in other words,
(14:10):
with rent subsidies, which I believe is a higher cost
in the New Zealand taxpayer than health education or you
name it. My understanding that the health that the rental
subsidy is paid out is absolutely enormous. And if that's
the case, aren't they just benefiting the landlord. The landlord
(14:31):
will get a capital value in ten or twenty years
and usually quite substantial, so he can walk away with
a bundle. But the person that's renting and providing that
and the government they get nothing. Really, yes, I wouldn't
it be helpful?
Speaker 4 (14:46):
So I think were you're maybe talking about is when
king or a sin the rent.
Speaker 3 (14:51):
Sorry I accidentally cut you off there.
Speaker 4 (14:53):
When caiing or rents some properties and then rent gives
them out to tennants. Is that what you're talking about
when king or gets in and sometimes pays an above
market rent.
Speaker 2 (15:02):
Well, I think if you looked at it like a
budgetary advice, like a professional business person, and say who's
benefit who should be benefiting, and then work out a
plan and go through on that way. Like to me,
it's young families that are struggling. They should be the
ones that getting the loans, not the blooming landlord is
paying off as the mortgage by the combination of the
(15:27):
government plus the rental person.
Speaker 4 (15:30):
I think there's a tople of the misconceptions that around.
Sometimes people do have misconceptions around how much the government
really helps landlords. It's quite interesting that the recent tax
roll back in terms of intrastructibility was really seen as
a subsidy for landlords rather than just going back to
the old way it was where landlords followed the same
rules as everyone else. Every other business interest is a deduction.
(15:53):
What you do sometimes see though, is that kid or
might pay a slightly above market rent when they like, right,
we've got all of these people who need homes, let's
go and find them. You know, they might do a
deal and pass slightly higher rent than a market rate
in certain situations. The landlords where I've seen that happen, though,
have also had to provide additional services like property management
(16:15):
and really work with some of these people who are
doing it tough, whether there are mental health issues or
other social issues in there. What I haven't seen. What
I haven't seen though, is kying aura or the government
really paying out huge subsidized housing. If that is happening,
I'm sure The New Zealand errile And News talks, he'd
be will have a great scoop on it.
Speaker 3 (16:33):
Thanks for a call, John. Actually that's interesting. I thought
one of John's raised an interesting issue there was if
there was some sort of subsidy or government assistance for you,
would you actually ask for a would you ask for
a pay cut to get it? Which is creative thinking
because you'd work out but I don't know what's there.
It would be worth a pay cut anyway, and were
(16:54):
you Ney the wiser on.
Speaker 4 (16:55):
That, well, it could be. Actually, so if we think
back to when there was the first home grant, if
you earned under a certain threshold from memory, it was
something like ninety thousand dollars. If you're a single person,
it could be worth five grand here. So a small
pay cup maybe. But the way that it often works
now when the government decides whether to give you a
some sort of grant or subsidy, as they look at, well,
(17:17):
what did you earn over the past twelve months? And
so even if you get a pay cup, well there,
you can't just.
Speaker 3 (17:22):
Go hey them cut away just by a couple of
grands I can cash up.
Speaker 4 (17:25):
Yeah, It's not like they ask for for what was
your last pay slip? They would they would. They will
go to ird often and say, well, what was your
taxable income over the last twelve months. So it's pretty
hard to fudge, which, of course all ours taxpayers would say.
That's a wonderful thing that it's that it's not easy
to fudge good stuff.
Speaker 3 (17:42):
Right, Let's take another call, Steve Good.
Speaker 5 (17:44):
Are you good? Look just on this on the on
the tariffs, right, I'm just I'm just one. I'm trying
to figure out why it's it's so bad because look,
you got the media, you got everyone saying it's like
an economic nuclear bomb going off. It's going to score
the economies. But we've had tariffs before, haven't we in
(18:05):
the past, and we've actually had a better standard of
living and actually people have generally been wealthier, you know what.
I And another thing is it can only go really
bad if all the other countries decide to reciprocate, reciprocate, right,
and put on tariffs themselves. It doesn't sound like they're
going to You're going to play it cool because I
(18:28):
know Trump's the baddest man in town, right, And it's
a really interesting it's a really interesting experiment, isn't it.
Speaker 3 (18:36):
Well, it's a funny experiment when you're slashing sex trillion
dollars off the dow, off the off the share market.
But what do you reckon?
Speaker 2 (18:43):
Edd?
Speaker 4 (18:43):
Well, I mean, I'm an old school econovist, right, so
I'll happily make the argument for free trade. The argument
for free trade, or rather not having tariffs, is really
that if you have free trade, then if you have
free trade, then goods can be made in the most
efficient place. So if we think about the idea of
you know, at Lea's call it manufacturing, because they it
(19:05):
tends to be the thing that Trump talks a lot about.
It's highly efficient to manufacture things like toaster ovens and
ovens and all of that in China and places where
the cost of labor is lower. Now, you might say,
but what happens to all of the people who used
to manufacture goods in the US. Well, generally what they'd
start to do is work on higher value services. And
so we tend to see that America has got a
(19:27):
really high America has got a really high value economy.
People are able to work in tech and services, and
so we tend to What we tend to see is
that people will switch what they do can I.
Speaker 5 (19:41):
Say something though, really quickly? Who Look, each country is different.
For each country, you can't just draw a broad brush.
Some countries be great from trade free, others don't. I'll
tell you what I think. We know who does really great?
We do because we pile milk products into every other
country and free trade is fantastic because that's where we
make our money. But we don't bring a lot in America.
(20:03):
On the other on the other hand, population bring a
lot of products in. And you can and look that
whole thing about everyone stepping up this higher economy in
the US, Well, that's a load of bologney, because that's
why Trump got actually voted in because of the hollowing
out of the manusfacturing sector. This is a load of
rubbish that people are just going to go and become
it t people, the old truck. They want hands on.
Speaker 3 (20:25):
The average American is going to be paying for any
goods that come into the country. They're going to be
paying a lot more. And I guess that's that's well, I.
Speaker 5 (20:33):
Guess market it's going to change.
Speaker 3 (20:35):
Well, I think that that's bollocks. I think that the
share market is the proof of this. That this people
who buy and sell in the share market are not idiots,
and they put a value on things. And if it's tumbled,
I think it's because, I mean, what was it that
business person from the business school and saying it's like
flat earth listening to a flat earth arguing about what
(20:56):
tarists a good idea, they're bad news.
Speaker 4 (20:58):
I'll give you two more examples around where free trade
can really work. If you want to build a car
over an America and Canada, car parts currently cross the
border something like seven to eight times. Now, if you
want to charge a tariff every single time those car
parts cross the border, then you really start to make
that inefficient. Whereas if you have a free trade economy,
(21:18):
what you then enable is that goods can be made
or that car part can be made either side of
the border and whatever their most efficient way as possible.
The oil and gas one is also really interesting. The
idea that the Americans drill a lot of oil in
Texas and they say, okay, well, maybe we've got enough oil.
But if that oil is really needed in the Northern
(21:39):
States and Canada's drilling it just on the other side
of the border, it's much more efficient to use that oil.
And so it's this idea that well, countries shouldn't or
don't just operate within their defined borders. Sometimes a place
like Texas is really close to Mexico, so there'll be
a lot of trade there. A place like North Dakota
is really close to Canada, and so there will be
(22:00):
a lot of trade there as well.
Speaker 3 (22:02):
Yeah, and look, we will try and keep this focused
on property than I've Steve wanted to. I mean, the
tariff situation is not irrelevant to property as well. But
let's we'll see if we can keep this on the
old property track as well. Okay, here's one for you, Ed,
And light of this new ability tim and light of
this new ability to build a to put a seventy
square meter granny flat without too much red tape, does
(22:25):
ed sea values rising in properties that have that bit
of extra land that's from Colin.
Speaker 4 (22:30):
Oh, that's a really good one, Colin. Short answer is yes,
a bit. So what you tend to see is that
if you've got a piece of land and you've got
your house on it, and all of a sudden you've
got some new ability to develop that land, then you
do tend to see prices rise. We saw that with
the Auckland Unitary Plan. Properties that couldn't be built on
(22:51):
previously and now have this new ability are suddenly more valuable.
And so I do think that it's quite exciting. There
is an opportunity out there to say, well, back when
we were talking about renovations before, and how do you
make sure the rent covers all of the mortgage? One
opportunity would be to buy a house with a bit
of land plunk of minor dwelling on the back, not
have to go through a resource consent process, not have
(23:13):
to pay the developer contributions, which is the tax that
you've got to pay when you build a new house
to the council. Well, if you don't have any of that,
that does make that strategy more attractive. Does that mean
demand for those sorts of properties increase? I'd probably say yes.
Speaker 3 (23:29):
What do you think of that announcement? Seventy square meters?
Is it's huge? That's a really big granny flat, that's
like a two granny flats.
Speaker 4 (23:39):
Well when I saw that size, nice big, Yeah, I
thought this is competitive. So one of my investment properties
down in crass Church is a two bedroom apartment. It's
sixty nine square meters and So when I saw that
the coalition commitment was to allow for sixty square meter
granny flats, and I thought, okay, that's a decent size.
(24:00):
Seventy Actually seventy square meters does make a difference. That
is a pretty nice, pretty roomy two bedroom granny flat
with a bathroom in an okay size lounge. So I
think actually that is quite competitive. I think quite a
few people will start to use this strategy, and I
think some of those companies like Keith hay Holmes or
a GJ. Gardener will probably do quite well out of this.
Speaker 3 (24:22):
Yeah, it'll be interesting to see, Yeah, if interesting to
see how much people decide to actually add that extra
bedroom on just by dragging a dragging a putting a
building on, rather than having to worry about the planning
changes to build an extra bedroom to your house, just
whack a granny flat on. In fact, do you think
there's a chance that we might see a change in
(24:42):
the way people add that extra room that they might decide,
you know what, I'm not going to have to go
through the hassle of adding an extra room to my house.
I'm simply going to add a separate dwelling and I
can bypass all the nonsense.
Speaker 4 (24:55):
Yeah, I think it's quite exciting, especially for baby boomers
who are coming up to retirement. One classic retirement strategy
is if you don't have a lot or loads money
and your key we save, or you haven't saved up
loads of money, but maybe you've got a little bit.
A classic strategy is to say, well, I've got my home,
I've got a bit of land here, why don't I
build a minor dwelling on the back, so a seventy
(25:17):
square meter granny flat on the back of my on
the back of my house, on the back of my land.
I'll rent that out for five hundred bucks a week
and I'll use that to top up the superannuation. You know,
that's a kind of a classic strategy to get a
bit of bit of extra do in. Especially if you
can do that without a mortgage, that's going to start
to become pretty profitable for you.
Speaker 3 (25:35):
Actually, be interesting to know how many people would have
that amount of land available, given that, you know, the
old quarter acre has been subdivided so much, and we
don't have that much land around these days, so it's
sort of nice to have if you had it.
Speaker 4 (25:47):
I think that's definitely fair. We're actually seeing that in
terms of flippers as well. So I was talking to
somebody who really really has been in the flipping game.
So buy property, do it up, sell it on, and
they said to me, it it's actually getting so hard
these days because all of those old villas that I
used to buy up, do up and flick on, they've
all been bought by developers, and developers have knocked them
(26:09):
down and built four to six townhouses there. And so
there's not as many opportunities for me because all of
the old rundown houses have been turned into townhouses now.
And so it would be interesting to see exactly how
many I might have to ask my good friends at
call Logic to help me outcrunch that data.
Speaker 3 (26:25):
There we go, Well, well we'll be having them on
no doubt soon.
Speaker 2 (26:28):
Care Logic.
Speaker 3 (26:29):
I can part. I can be asking for a friend's
by the way, somebody a couple of texts just say,
let's hope it's over for at least five years. It's
totally unaffordable at present. It's the market still what you
would call unaffordable. I mean depends on your income and
all sorts of things, doesn't it.
Speaker 4 (26:48):
But well Affordability is in the eye of the beholder, right,
but it depends where you are. So if you're an Invercargill,
you probably look at the fact that your average house
price is something like four hundred and eighty grand and
you think, oh, mate, that's pretty affordable. But for some
people it actually won't be. The main thing I'd say
is if we look at incomes versus house prices, that
(27:09):
ratio is lower today than what it was pre COVID,
So house prices are currently slightly more affordable than they
were back in kind of the start of twenty twenty
and so I kind of look at my lens on
that and say, houses are expensive, but they are not
quite as expensive as they were in twenty twenty one
or late twenty twenty because incomes have gone up, but
(27:32):
nominal house prices are kind of fifteen percent below the
peak of the market what they were back in November
twenty twenty one.
Speaker 3 (27:39):
As a metaphor, I sort of think that there was
a time when the property market, you know, when it's
really pumping, it's like a tight rope and it's absolutely
pulled taut, and to me it feels like it's slightly
more of a slack line. You can still walk across
the trickier but you know what I mean, there seems
to be a bit more sponginess in terms of your
urgency that you need if you want to get a house,
the urgency you might have felt a few years ago.
(28:00):
You've got a bit more time to really have a
good look around, haven't you.
Speaker 4 (28:02):
Oh ifoemost totally gone out of the mast right, there
ain't no fear of missing out here. But to be honest,
that's just part of where we are within the market cycle.
You know, we had that big oh my gosh, I
need to go now because I can't because there aren't
that many properties on the market that was back in
twenty twenty one. Today there are over thirty thousand properties
(28:24):
available for sale on sites like one Roof. This is
basically a ten year high, and so buyers do feel
like they are able to take their time try and
find the right house, and if they feel like a
seller is not willing to meet them, then they can
move on to the next one. Because there are so
many properties for sale and so it is a great
(28:45):
time for buyers, especially now that the interest rates have
come down. And when I talk about the interest rates.
I'm not just talking about what you actually pay on
your mortgage. I'm also talking about the servicing test rates.
So what the banks actually run their sums on. Now,
about two years ago, start mid twenty twenty three, banks
were still tensting your loan at around nine percent. So
(29:08):
even if you only paid seven percent, I'd say yes,
but could you afforded a nine percent? Today that's down
at seven percent seven point two, and so it's a
lot easier to get a mortgage.
Speaker 3 (29:17):
Actually, And that's you know, these might sound like small
ships and stuff, but that's a massive shift. So you've
got you bought a house for eight hundred thousand dollars,
you might have a six hundred thousand dollars mortgage. So
nine percent test ratus, can you serve us a fifty
four thousand bucks worth of interest a year? That's a
lot of money.
Speaker 4 (29:33):
Yeah, big big. The other thing that has changed over
the last little bit is also do you remember that
rule the triple CFA where there were all these articles, well,
well there were all of these articles that hopefully you
will remember where banks were declining mortgages because of a
one hundred and eighty dollars k marn't visit or two
much on coffee, too much on overeachs. Those rules have
(29:54):
been totally rolled back. Now, labor made a small change,
National has made another change. So it has got easy
to get a mortgage compared to a couple of years ago.
That doesn't mean it's easy to get a mortgage, but
it's easier.
Speaker 3 (30:08):
Excellent. Hey, look, we need to take a break. We'll
be back in just a moment. Talking about the Golden
Age property. There are the topics that creep in as
we're having a fluid discussion around the granny flats and maybe,
I mean maybe the granny flats. The ability to add
one of those is going to contribute to people's ability
to or willingness to invest in property, depending on the
size of the section. Of course, a couple of textas
before we go to the break. Totally agree the Golden
Age is over it at least for now. House prices
(30:30):
versus wage gap is too large. Most houses no longer
make sense as an investment. The numbers don't add up. Well.
I think I can probably guess that Ed might say
currently or at the moment, but who knows in the future. Right,
we'll be back in just a moment. It's twenty to
five new stalks.
Speaker 2 (30:43):
He'd be.
Speaker 4 (30:45):
Yether cool guys, Weather.
Speaker 1 (30:54):
You still have bonds?
Speaker 5 (30:57):
You yell?
Speaker 3 (31:02):
Yes, Welcome back to the one ref radio show. I
guess the Zed mcnighty's a resident economist. Opas partners and
we're talking about as the golden age of property over.
But also the topic of granni flats has crept on
because there's been an announcement that you'll be able to
build a granny flat on your property or pop one
on there up to seventy square meters. Helen, Hello, Oh.
Speaker 6 (31:23):
Good afternoon, Tom and Ed. I'd like to comment on
the what you said about the granny flats. But also,
while I'm thinking about it, I think what a previous
caller was referring to the Winds accommodation supplement which was
subsidizing the high rate rents. That's what he meant. Now
about the granny flats. Now, I'm not quite sure if
(31:45):
I've misunderstood what you were saying, but I understand that
if you're going to have a you can have the
granny flat, and you can have this quite large footprint,
you know, but once you actually have a bathroom, you've
actually got to go through all the consent processes and
all that WED tape, so I'm not quite sure if
(32:06):
I misunderstood you.
Speaker 4 (32:08):
Yeah, that's a great question, Helen. So first of all,
we should say we don't have exactly what the rules are,
but I'll tell you what my understanding of the rules is.
So at the moment, though, you can build a thirty
square meter dwelling on your property, which is basically like
a bedroom or maybe a couple of bedrooms. I kind
of always call them cabins, but you are right that
(32:30):
right now, if you put in a kitchen or a bathroom,
any plumbing, you absolutely need to go through the resource
consent process.
Speaker 6 (32:38):
Now my own, that's what I understood it, So I
just wanted to clarify clarify that. Yeah, thank you.
Speaker 4 (32:44):
Yeah, my understanding of the new rules that are coming
with the seventy square meter dwellings or the seventy square
meta dwell granny flats is that you would be able
to have plumbing in there without needing consent. It just
needs to be signed off by a licensed building practitioner.
I am just very interested in getting exactly what those
rules are so we can confirm that. But I think
it'd be quite counterproductive to be able to build seventy
(33:05):
square met does it not have a bathroom in there?
Speaker 3 (33:08):
I've heard talk about the composting toilets and things, so
that's what people will simply do, is have composting toilets.
But I don't know it. Yeah, I don't know about
the plumbing. But we'll dig into that a bit further.
Because this announcement's just come out. Interesting. They've seen that
the law change they reckon will allow an estimated thirteen
thousand new grandy flats to be built over the next
decade without the need for resource or building consents. I
(33:30):
wonder would that be because they've worked out the number
of properties that would be eligible for it, or I
don't know what it would be thirteen thousand.
Speaker 4 (33:37):
Well, they'd probably look at that as well as well,
what's the willingness for people to actually go ahead and
do it. One thing that's interesting though, that thirteen hundreds
or number seems quite low to me. They're about that
ten thousand, sorry, thirteen thousand over ten years though, yeah,
oh yeah, yeah. So if you say, well, there are
two million properties in New Zealand at the moment, so
(33:57):
we're talking about a fraction of a fraction of a percent.
That's actually quite a bit lower than I thought it
was going to be.
Speaker 3 (34:03):
Maybe they're also looking at the number of people applications
under the existing rules and that's given them a number. Anyway,
let's look at a few other texts just on the
golden age of property. Let's hope it's over. Property needs
to be more a social investment in your family. Stock
goes up and good dividends help. We need to invest
in productivity. Well, property needs to be more of social
(34:25):
investment in your family. Well, I would imagine most people
who invest in property think it's good for their family
because they've got more money to do with what they
want with their lives.
Speaker 4 (34:31):
Yeah, but I think that what they're really saying as
well is you should buy a house because you want
your family to live in it, rather than have it
as an investment. The one thing that I always say is, yeah,
but where are the tenants going to go? So even
when home ownership was at its highest tim which was
back in nineteen ninety one, a quarter of people still rented.
And so given that there are two million properties in
(34:52):
New Zealand, was still going to need it kind of
five hundred thousand rental properties.
Speaker 3 (34:56):
It's funny that it always gets lost that people assume
that it's only because of whatever the problem is in
the property market that we've got all these people renting.
It's actually no, no, it's because of the life you know,
the lives of people who just want to rent. And
people are starting at early and there in their twenties
or early nor thirties. It's just the way it is
for people. You're transient, you live here for a bit,
(35:17):
maybe you'll travel a bit, you're saving up for a house.
There's I mean, it is funny how we often forget
that in the arguments like that there is always going
to be a number of people renting.
Speaker 4 (35:26):
And that could be life stage. Like when I was
twenty one living in Hamilton, Hamilson is coming up a
lot today. I wasn't buying a property because I couldn't.
I was studying at university. Simply, people move around the
country a lot. So if you decide that you're going
to move from Auckland down to christ you're probably going
to rent for a bit. And so we do need rentals,
and I think the demand side kind of people don't
(35:48):
always think about it when they say, oh, landlord bad.
Speaker 5 (35:51):
No.
Speaker 3 (35:52):
Actually, probably the most irritating side of the arguments around
property policy is when people assume that one band of
New Zealander, I tenant or a landlord is bad. On
the other side, is good. You know what good and
bad of everything? Really, But anyway, hey, we need to
take a break because we're coming back with the one
roof property of the week, which is pretty flash. Actually
(36:13):
it's near where I live, which doesn't mean that where
I live is flash. But you know, I'm happy with
where I live, but this place I probably would trade
places if I could just do a property swap, but
I somehow I think that's not on the cards with
this one. It's eleven minutes to five news talks. He'd
be everybody was going.
Speaker 4 (36:31):
The fastest, flatly infected.
Speaker 3 (36:40):
That's welcome back to the One Roof radio show. My
guest is Ed McKnight. It is eight minutes to four,
which means it is time for the here we Go,
the wonderful I'm going to let this sting play. Actually
just to here we go, I think, But.
Speaker 1 (36:55):
There we go the one roof property of the week
on the weekend Collective just.
Speaker 3 (37:00):
My producer Tyre got caught out by feeling so smug
about it. Isn't my song choice. Just I'm just nailing
it today with a bit of kung fu fighting. Anyway,
this is the one roof property of the week. Is
a stunner. As I say, it's always like going on holiday.
Ed's had to look at it as well. It's pretty good.
Two nine eight b Ridell Road, glen Dowie, Auckland. It's
five bedrooms, two bathrooms, three k garage garage, garage. I
(37:22):
guess it's so this is such a nice house. I
think we're going to say garage. The house is three
hundred and seventy three square meters with land of five
hundred square meters. It's park like surrounds with harbor views
and the harbor views. When it says harbor views, it's
not just peeking out the toilet window. The harbor views
are absolutely stunning. It's got a powered light elevator. I
(37:44):
don't know what that means, but if you're in that
market you might know. European oak engineered flooring. Gorgeous again,
and it's just I don't know how to describe it.
I'm going to hand it over to ed because you've
had a look at it ed, what do you reckon?
It's not bad.
Speaker 4 (37:58):
Well, not bad. It's an understatement. This is obviously a
brand new home. Five odd bedrooms there. I always like
it between a new built house has a bedroom on
the ground floor these days, very good for guests, but
also good for older people and when you have a
little bit more generational living, people certainly look out for
that one little thing that I'll always point out to
people if they're trying to figure out whether it's a
(38:18):
brand new house or not. Most brand new houses do
not come with curtains or blinds. So if you flick
through the if you flick through the photos on this one,
you'll see that there's pretty much no blinds that I
can see, no curtains because those are generally not included
and the first time owner decides what's to put what
to put.
Speaker 3 (38:36):
In fun fact, I had never noticed that. But it's
also photographs so well, because curtains always I don't know.
Speaker 4 (38:43):
There's something about the open aspect to every view. Now
there's one thing I've just got to pack up though.
So there's a beautiful master living room. So on the
top floor we've got the main bedroom and we've also
got a living room. But you've got clear glass between
the bedroom and the living room. So if any peepig
(39:03):
Tom's crept up at night, all your kids came up.
I'm not sure how I feel about that you've got
kids about that, Tim, So I'm trying to show you
here because it's got the laptop up, a clear glass
in between the bedroom and the master living room on
the top floor.
Speaker 3 (39:18):
I thought there was a mirror.
Speaker 4 (39:20):
No, no, no, I'd be too embarrassed to sleep at
that bedroom. I'd beat down on the first floor with gradmar.
Speaker 3 (39:26):
Maybe it's not really a bedroom. They've shoved a bed
in there so they can say it's five bedrooms. Really,
maybe it's four bedrooms. Anyway, Look it's yours for around
five mil. I think it's going to be priced by negotiation.
An estimate of the one roof estimate is four point
five six. The RV is five point one five. So
that's interesting half a million cheaper than the RV. As
(39:46):
we've discussed previously, ed RV's not a hell of a
lot of use, are they when it comes to working out.
Speaker 4 (39:52):
That doesn't really surprise me at the moment. Auckland Homes
is selling about nine to ten percent below RV. That's
just because they were set at a time when house
prices were much higher. So I wouldn't look at that
and say, well, that's just a massive discount there. This
is a discounted property and I'm getting an absolutely great
deal that's probably market rates at the moment.
Speaker 3 (40:10):
Yeah, So if you're curious, go and have a look
it is. The does look like mirror. I reckon they
look like mirrors, but now you might be right, but yes,
go and check out the property on it. It's two
nine to eight b Riddell Road in glenn Daley Auckland City.
And look the views as are stunning and the outdoor living.
It's the sort of house that, to be honest, if
(40:31):
I won the lotto, i'd be I'd be popping around
and just requesting a private viewing and see if I could.
And I don't mean just the lotto for four or
five mil, because I still wouldn't be able to afford it.
It'd be the lotto when it gets up to twenty
and it goes to me. Anyway, Great to see.
Speaker 4 (40:46):
Them, mate, great to be here, Tim, thanks for having
me look.
Speaker 3 (40:48):
Forward to next time you can check out go to
ops dot co, dot n z, I think close Open's partners.
I'm sure if you just google them we'll find it
as well. Hey look we're back with the parents Squad.
Sarah Chatwin's with us. It's this is news Talk, said b.
It's three and a half minutes, two five. That's the
best for
Speaker 1 (41:10):
For more from the Weekend Collective, listen live to News
Talks it be weekends from three pm, or follow the
podcast on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks.
Speaker 2 (00:09):
It'd be.
Speaker 1 (00:17):
My friends, Hello, got a little higher.
Speaker 3 (00:34):
And welcome back. This is the Weekend Collective. I'm Tim Beverage.
By the way, if you missed our wonderful panel with
Brad Olson and Irene Garden, you can go and check
it out wherever you podcasts go. iHeartRadio News Talks. It'd
b look for the Weekend Collective and we get each
hour loaded up pretty quickly after the conclusion of the
after its conclusion, so you should be able to go
on there pretty soon and check it out. But right
now it is time for the one roof radio show.
(00:58):
And actually before I introduce my guests, I'll tell you
what we're going to talk about, because we want your
calls on eight hundred and eighty ten eighty Wilson. Want
to get a text on nine two two. As I say,
you can email to be at Newstalks. He'd beat at
Curtain and Z. But that's generally if you're not an
ARI of course, as I say that, I've just opened
my email now. But we'd love to have your cause.
But the question is I've had some conversations recently with
(01:21):
a range of people who have been involved with property
or you know some people are who are pretty successful.
And with some of them, I was quite surprised to
hear that they had either limited their property investments or
they'd got out altogether and had all their money in
stocks and shares. Mind you, let's be honest, last two
(01:41):
or three days, I could see my guests smiling at me,
going not so smug and OI now with the old
with the tumbling of the Dow Jones industry and all that.
But anyway, but the question is there is a lack
of excitement in a way about the property market. And
I've known people who have gotten and leveraged themselves to
the help in the golden days where they just send
to make money hand over fist and rents for covering
(02:03):
the mortgage and the the capital gains were all there,
if only you were smart enough or not dumb enough
not to do it, you know, speaking for a friend
I myself who watched Hamilton go off. As we know,
Tim Roxburys to tease me about that all the time.
But the question for you is is the golden age
of property investment over or is it just on hold?
(02:25):
Are we just in one of those hiatuses where things
are not that exciting, or do you think we're going
to get back to those days where everyone was fomoing
you through the roof you could pay your mortgage off
with what your rent was that you were getting and
it was just a license to print money? Or was
it ever that easy? So I want your cause on
(02:46):
this is the golden age of property over or just
on hold? And to discuss it, well, he's all over
it himself. He's a resident economist. At Op's partner got
his own podcast as well. From time to time he
likes to tell us about. His name is Ed McKnight.
Hey you great to be here, tim, yep. Is the
golden age of property investment over? So I think this
as I've described.
Speaker 4 (03:06):
I think this golden age of property investment probably is over.
But I think there's going to be another one coming
at some point in the future. Maybe not over the
next year, but at some point. And the reason I
say this age is the property market tends to go
through phases, and those phases, those property cycles tend to
last somewhere between ten to twelve years. And so I
(03:28):
think the kind of boom that we saw coming out
of the GFC property price has kind of bottomed out
around December two thousand and eight, depending on where you
are in the country, and then after a couple of
years of the market just going sideways, we started to
see the market take off. Auckland took off in twenty twelve,
it didn't slow down until about twenty sixteen, and then
(03:49):
COVID came along and pushed it along again. And so
this kind of double boom that we've had, I think
that does put an end to this era of property investment,
But is there going to be another one? And are
the strategies going to change at some point? I think
you'd have to say yes. It's not like property prices
or the property market just stands still for the next
twenty thirty forty years. So it'll be interesting to see
(04:11):
what are those strategies that are going to work. There
are some things that you mentioned that probably are going
to change. The fact that back in the day you
could purchase in an investment property in the rent covered
all of the costs, not just the mortgage, but the rates, maintenance, insurance.
We're just not seeing that at the moment. Most investors
that we work with it open's partners are putting money
into their properties to top up that mortgage or make
(04:34):
sure that the rate spill is covered the good users
with the interest rates coming down at the moment that
number is going down, which is very very good, but
it won't be exactly the same.
Speaker 3 (04:47):
Yeah, So how much of a psychological hurdle is it
that when we went from properties covering their own cost,
basically your rent would pay your mortgage. How much of
a psychological hurdle do you think it is? Now? Where
people go, Okay, I could get in now and the
rent's going to give me this, but my mortgage is
still going to be much more expensive than my rent.
(05:07):
And that's sort of people just the idea of subsidizing
the mortgage is a bit of a turn off to them.
Speaker 4 (05:12):
I have a think for some people it is. And
for those people, I always recommend that they don't just
buy a property off the market and start renting it out.
The main thing they should do in that case is renovate.
Because if you grab a property and you spend five
hundred grand on it and then you invest fifty or
sixty thousand dollars renovating it, adding in a bedroom something
like that, you're often going to see that rent increase,
(05:34):
and so there is a way to make your property's
cash flow neutral, but it requires something from you. It's
either going to be a cash deposit, a renovation, or
you're going to have to say, Okay, I'm just going
to top up the mortgage because I don't like those
first two options.
Speaker 3 (05:46):
So what I'm hearing there is in a way that
the property you can still make a property investment. You
can still make it work, but it might require a
little bit more from you than going, here's the money,
where is my tenant happy days?
Speaker 4 (06:00):
I think that's probably fair. I often see the kind
of three ways that people invest, and all of the
other variation of how people do it kind of flows
from there. The first way is flipping, where you buy
a property, you do it up, and you sell it on.
The good news there is you don't really have to
worry about the mortgage because you're making money from the
property going up in value. The second way is the
(06:21):
renovation side, and I see quite a number of investors.
We used to have a property coaching company actually in
my business, where we would teach people to renovate properties
increase the cash flow. We called it cash flow hacking,
and some of those strategies worth things like adding the
extra bedroom. And often with nineteen seventies properties, nineteen eighties properties,
they might have an extra lounge or an extra dining room.
(06:43):
If you turn that into an extra bedroom, you can
often increase the rent quite substantially. That's a way to
try and make them cash flow neutral. Or for a
lot of investors, they say, well, do you know what,
what's my option? I could either put one hundred or
two hundred dollars a week into shares or I could
put that money into property, And yes, I've got to
top up the mortgage, but at least then I've got
a five hundred or six hundred thousand dollar ASCID and
(07:06):
if that goes up in value, that probably covers pays
me back for that and is not a bad investment.
Speaker 5 (07:12):
Yeah.
Speaker 3 (07:12):
By the way, when we mentioned the sheer market, of
course a few days ago, that that statement almost had
a different meaning. But of course we've seen that massive.
I mean, what is your take when you you know,
nothing exists in a microcosm on its own without effects
on the other. So what we're seeing with the Trump
administration having put on those tariffs what are your feelings
(07:34):
just around what it does for everything economic activity but
also property.
Speaker 4 (07:38):
I think the main thing is just uncertainty and people
being unable to make a decision. I was giving a
presentation to the board of directors at the Real Estate
Institute just not that long ago, and I always kind
of find it quite funny when you've got people who
have got thirty years experience in the industry and I'm
just over thirty years.
Speaker 3 (07:59):
I noticed that humble brag there almost but the reason
sounds very flash.
Speaker 5 (08:05):
Well.
Speaker 4 (08:05):
I don't mean to talk myself up, because I'm just
a country hick from Harwire, as you know, down in
South Tartanaki. But I was speaking to these guys and
one person put up their hand and they said, ed,
the future has never felt so uncertain, you know, And
all of the thirty or forty years that I've been
working in industry, nothing feels very certain at the moment,
(08:27):
and that means that we kind of second guess our decisions.
I think all of the Trump plays and the tariffs
that are coming on at the moment that adds to it.
But it's quite funny because we were talking off here
that my fiance is a financial advisor she deals in shares,
and this kind of investment well blowing me down. We
were just in a car and an uber going down
to Polyfest in South Auckland. Today we're all talking about
(08:48):
how we need to invest even more money in shares
because it looks like an absolute bargain at the moment.
Speaker 3 (08:53):
Well, and this is not, of course we're the one
ref radio show, but that it will be interesting to
see because I have you know that don't look at
your key. We say for people, it won't be good news.
But I sort of feel that whatever happens now is
not forever. But the market must pricen that anticipation as well,
because the market's always quicker than you or I, isn't
(09:14):
it in terms of the reactions and the instant feedback
of information. So that fall you sort of think that
there's always going to be bumps and it's going it'll
recover eventually one perhaps, no matter what happens.
Speaker 4 (09:25):
Would it well, I would expect. So one thing that's
quite interesting is sometimes these ups and downs are less
impacted by institutional investors or people who are managing a
whole heap of funds. Sometimes it is people who are
just regular mum and dads who hold a couple of
shares they get spooked by the tariffs and decide to
sell down. That can provide quite a number of opportunities.
(09:46):
My view is that as long as you're in an
asset for ten years, fifteen years, you don't need to
worry about what's happening. Happening today, I locked into my
key we saver. I think I might be down six
grand compared to last week. That doesn't bother me because
I'm not going to be able to access that money
for another thirty odd years. I'm giving a presentation next
week week actually basically talking about this in the context
(10:07):
of property. So if you purchased a property at the
worst point in the market, let's call it Hamilton, just
because I've got the numbers to hand. So if you
bought it the absolute peak of the market back in
two thousand and seven, a year later you were down
about eleven percent. Three years after the peak of the market,
you were down about thirteen percent. Five years after the
peak of the market, Oh god, we're still about ten
(10:30):
percent down. But ten years after you were forty six
percent up from when you bought.
Speaker 3 (10:34):
So that must have been at that five percent, five
years after the market was the moment that I said
to Tim Rocksborough, Gosh, I reckon, I reckon Hamilton bear go,
well it would have been and just watched it.
Speaker 4 (10:45):
The interesting thing now, fifteen years after the peak of
the market in Hamilton, back after the GFC, prices were
over double. And so if you take a very long
term view of things, you generally are okay. I do
think there is too much market panic, generally speaking, because
we deal with kind of Dan Vesu's a lot. We
(11:06):
see that in my company. But I think the main
thing is if you've made a long term decision, whether
you made it in twenty twenty or twenty twenty one,
if you said this is going to be a fifteen
year decision, you can't base you can't say that was
a good or a bad idea only three years in
you made a fifteen year commitment. See the fifteen year
commitment out most of the time.
Speaker 3 (11:29):
Yeah, so we'd love your cause on this eight hundred
and eighty ten eighty. I was going to say, my
crude way of asking the question, that's just a simple
way of asking the question. Is the golden age of
property over that there was a time in conversation at
the parb, or just over a cup of coffee, where
people would you'd be aware of how much foamo and
how much energy there was enough you can you just
got to get into the propping market. And I just
(11:50):
don't hear that.
Speaker 2 (11:51):
Now.
Speaker 3 (11:52):
Do you think the golden age of property is over?
Or is it just on hold? And if it's just
on hold, will it be what we see in a
golden age like we did see where leverage you'd leverage
yourself up the yin yang your mortgage to cover your rent,
and then a few years later you'd cash up and
buy another couple of properties. Do you think we'll see
(12:12):
those those days again? Eight hundred eighty ten eighty. You
can text on nine two nine two if you have
any questions for Ed McKnight Of course, he's a resident
economist at Opea's partner his partners. You can give us
a call. Eight hundred eighty ten eighty. Will be back
in just a moment. It is nineteen past four news Talks.
Speaker 2 (12:28):
He'd be.
Speaker 3 (12:56):
Yes, welcome back the one roof radio show on the
week in Collective on Ton Beverage. My guest is Ed
Mcnighty's economy, a resident economist at Opea's Partners. We're talking
about that is the guy olden age of property over.
And the question would be, well, I think obviously the
golden age as we've seen in the past is over.
We're in a different phase right now. But will it
return and when or it's the golden age? Just on hold,
(13:18):
so we can take your callse O eight one hundred
and eighty ten eighty text nine to nine two. Let's
go to John.
Speaker 2 (13:27):
Yeah, Hi, I was just thinking, I'm seventy five. Well,
actually i'm seventy six. But when I was young, they
had a government thing that if your income was below
a certain point, you could get a loan from the
Bank of at three percent. Unfortunately, at the time, I
(13:48):
was a couple of dollars a week more than that.
So I went to my bus and I said, hey, listen,
can you cut me wages? And you laughed and said
I can't do that, John, So ihu was and the disadvantage,
but I thought the scheme did help a lot of
people who are on low income. What I see now
is the government absolutely subsidizing the landlord, in other words,
(14:10):
with rent subsidies, which I believe is a higher cost
in the New Zealand taxpayer than health education or you
name it. My understanding that the health that the rental
subsidy is paid out is absolutely enormous. And if that's
the case, aren't they just benefiting the landlord. The landlord
(14:31):
will get a capital value in ten or twenty years
and usually quite substantial, so he can walk away with
a bundle. But the person that's renting and providing that
and the government they get nothing. Really, yes, I wouldn't
it be helpful?
Speaker 4 (14:46):
So I think were you're maybe talking about is when
king or a sin the rent.
Speaker 3 (14:51):
Sorry I accidentally cut you off there.
Speaker 4 (14:53):
When caiing or rents some properties and then rent gives
them out to tennants. Is that what you're talking about
when king or gets in and sometimes pays an above
market rent.
Speaker 2 (15:02):
Well, I think if you looked at it like a
budgetary advice, like a professional business person, and say who's
benefit who should be benefiting, and then work out a
plan and go through on that way. Like to me,
it's young families that are struggling. They should be the
ones that getting the loans, not the blooming landlord is
paying off as the mortgage by the combination of the
(15:27):
government plus the rental person.
Speaker 4 (15:30):
I think there's a tople of the misconceptions that around.
Sometimes people do have misconceptions around how much the government
really helps landlords. It's quite interesting that the recent tax
roll back in terms of intrastructibility was really seen as
a subsidy for landlords rather than just going back to
the old way it was where landlords followed the same
rules as everyone else. Every other business interest is a deduction.
(15:53):
What you do sometimes see though, is that kid or
might pay a slightly above market rent when they like, right,
we've got all of these people who need homes, let's
go and find them. You know, they might do a
deal and pass slightly higher rent than a market rate
in certain situations. The landlords where I've seen that happen, though,
have also had to provide additional services like property management
(16:15):
and really work with some of these people who are
doing it tough, whether there are mental health issues or
other social issues in there. What I haven't seen. What
I haven't seen though, is kying aura or the government
really paying out huge subsidized housing. If that is happening,
I'm sure The New Zealand errile And News talks, he'd
be will have a great scoop on it.
Speaker 3 (16:33):
Thanks for a call, John. Actually that's interesting. I thought
one of John's raised an interesting issue there was if
there was some sort of subsidy or government assistance for you,
would you actually ask for a would you ask for
a pay cut to get it? Which is creative thinking
because you'd work out but I don't know what's there.
It would be worth a pay cut anyway, and were
(16:54):
you Ney the wiser on.
Speaker 4 (16:55):
That, well, it could be. Actually, so if we think
back to when there was the first home grant, if
you earned under a certain threshold from memory, it was
something like ninety thousand dollars. If you're a single person,
it could be worth five grand here. So a small
pay cup maybe. But the way that it often works
now when the government decides whether to give you a
some sort of grant or subsidy, as they look at, well,
(17:17):
what did you earn over the past twelve months? And
so even if you get a pay cup, well there,
you can't just.
Speaker 3 (17:22):
Go hey them cut away just by a couple of
grands I can cash up.
Speaker 4 (17:25):
Yeah, It's not like they ask for for what was
your last pay slip? They would they would. They will
go to ird often and say, well, what was your
taxable income over the last twelve months. So it's pretty
hard to fudge, which, of course all ours taxpayers would say.
That's a wonderful thing that it's that it's not easy
to fudge good stuff.
Speaker 3 (17:42):
Right, Let's take another call, Steve Good.
Speaker 5 (17:44):
Are you good? Look just on this on the on
the tariffs, right, I'm just I'm just one. I'm trying
to figure out why it's it's so bad because look,
you got the media, you got everyone saying it's like
an economic nuclear bomb going off. It's going to score
the economies. But we've had tariffs before, haven't we in
(18:05):
the past, and we've actually had a better standard of
living and actually people have generally been wealthier, you know what.
I And another thing is it can only go really
bad if all the other countries decide to reciprocate, reciprocate, right,
and put on tariffs themselves. It doesn't sound like they're
going to You're going to play it cool because I
(18:28):
know Trump's the baddest man in town, right, And it's
a really interesting it's a really interesting experiment, isn't it.
Speaker 3 (18:36):
Well, it's a funny experiment when you're slashing sex trillion
dollars off the dow, off the off the share market.
But what do you reckon?
Speaker 2 (18:43):
Edd?
Speaker 4 (18:43):
Well, I mean, I'm an old school econovist, right, so
I'll happily make the argument for free trade. The argument
for free trade, or rather not having tariffs, is really
that if you have free trade, then if you have
free trade, then goods can be made in the most
efficient place. So if we think about the idea of
you know, at Lea's call it manufacturing, because they it
(19:05):
tends to be the thing that Trump talks a lot about.
It's highly efficient to manufacture things like toaster ovens and
ovens and all of that in China and places where
the cost of labor is lower. Now, you might say,
but what happens to all of the people who used
to manufacture goods in the US. Well, generally what they'd
start to do is work on higher value services. And
so we tend to see that America has got a
(19:27):
really high America has got a really high value economy.
People are able to work in tech and services, and
so we tend to What we tend to see is
that people will switch what they do can I.
Speaker 5 (19:41):
Say something though, really quickly? Who Look, each country is different.
For each country, you can't just draw a broad brush.
Some countries be great from trade free, others don't. I'll
tell you what I think. We know who does really great?
We do because we pile milk products into every other
country and free trade is fantastic because that's where we
make our money. But we don't bring a lot in America.
(20:03):
On the other on the other hand, population bring a
lot of products in. And you can and look that
whole thing about everyone stepping up this higher economy in
the US, Well, that's a load of bologney, because that's
why Trump got actually voted in because of the hollowing
out of the manusfacturing sector. This is a load of
rubbish that people are just going to go and become
it t people, the old truck. They want hands on.
Speaker 3 (20:25):
The average American is going to be paying for any
goods that come into the country. They're going to be
paying a lot more. And I guess that's that's well, I.
Speaker 5 (20:33):
Guess market it's going to change.
Speaker 3 (20:35):
Well, I think that that's bollocks. I think that the
share market is the proof of this. That this people
who buy and sell in the share market are not idiots,
and they put a value on things. And if it's tumbled,
I think it's because, I mean, what was it that
business person from the business school and saying it's like
flat earth listening to a flat earth arguing about what
(20:56):
tarists a good idea, they're bad news.
Speaker 4 (20:58):
I'll give you two more examples around where free trade
can really work. If you want to build a car
over an America and Canada, car parts currently cross the
border something like seven to eight times. Now, if you
want to charge a tariff every single time those car
parts cross the border, then you really start to make
that inefficient. Whereas if you have a free trade economy,
(21:18):
what you then enable is that goods can be made
or that car part can be made either side of
the border and whatever their most efficient way as possible.
The oil and gas one is also really interesting. The
idea that the Americans drill a lot of oil in
Texas and they say, okay, well, maybe we've got enough oil.
But if that oil is really needed in the Northern
(21:39):
States and Canada's drilling it just on the other side
of the border, it's much more efficient to use that oil.
And so it's this idea that well, countries shouldn't or
don't just operate within their defined borders. Sometimes a place
like Texas is really close to Mexico, so there'll be
a lot of trade there. A place like North Dakota
is really close to Canada, and so there will be
(22:00):
a lot of trade there as well.
Speaker 3 (22:02):
Yeah, and look, we will try and keep this focused
on property than I've Steve wanted to. I mean, the
tariff situation is not irrelevant to property as well. But
let's we'll see if we can keep this on the
old property track as well. Okay, here's one for you, Ed,
And light of this new ability tim and light of
this new ability to build a to put a seventy
square meter granny flat without too much red tape, does
(22:25):
ed sea values rising in properties that have that bit
of extra land that's from Colin.
Speaker 4 (22:30):
Oh, that's a really good one, Colin. Short answer is yes,
a bit. So what you tend to see is that
if you've got a piece of land and you've got
your house on it, and all of a sudden you've
got some new ability to develop that land, then you
do tend to see prices rise. We saw that with
the Auckland Unitary Plan. Properties that couldn't be built on
(22:51):
previously and now have this new ability are suddenly more valuable.
And so I do think that it's quite exciting. There
is an opportunity out there to say, well, back when
we were talking about renovations before, and how do you
make sure the rent covers all of the mortgage? One
opportunity would be to buy a house with a bit
of land plunk of minor dwelling on the back, not
have to go through a resource consent process, not have
(23:13):
to pay the developer contributions, which is the tax that
you've got to pay when you build a new house
to the council. Well, if you don't have any of that,
that does make that strategy more attractive. Does that mean
demand for those sorts of properties increase? I'd probably say yes.
Speaker 3 (23:29):
What do you think of that announcement? Seventy square meters?
Is it's huge? That's a really big granny flat, that's
like a two granny flats.
Speaker 4 (23:39):
Well when I saw that size, nice big, Yeah, I
thought this is competitive. So one of my investment properties
down in crass Church is a two bedroom apartment. It's
sixty nine square meters and So when I saw that
the coalition commitment was to allow for sixty square meter
granny flats, and I thought, okay, that's a decent size.
(24:00):
Seventy Actually seventy square meters does make a difference. That
is a pretty nice, pretty roomy two bedroom granny flat
with a bathroom in an okay size lounge. So I
think actually that is quite competitive. I think quite a
few people will start to use this strategy, and I
think some of those companies like Keith hay Holmes or
a GJ. Gardener will probably do quite well out of this.
Speaker 3 (24:22):
Yeah, it'll be interesting to see, Yeah, if interesting to
see how much people decide to actually add that extra
bedroom on just by dragging a dragging a putting a
building on, rather than having to worry about the planning
changes to build an extra bedroom to your house, just
whack a granny flat on. In fact, do you think
there's a chance that we might see a change in
(24:42):
the way people add that extra room that they might decide,
you know what, I'm not going to have to go
through the hassle of adding an extra room to my house.
I'm simply going to add a separate dwelling and I
can bypass all the nonsense.
Speaker 4 (24:55):
Yeah, I think it's quite exciting, especially for baby boomers
who are coming up to retirement. One classic retirement strategy
is if you don't have a lot or loads money
and your key we save, or you haven't saved up
loads of money, but maybe you've got a little bit.
A classic strategy is to say, well, I've got my home,
I've got a bit of land here, why don't I
build a minor dwelling on the back, so a seventy
(25:17):
square meter granny flat on the back of my on
the back of my house, on the back of my land.
I'll rent that out for five hundred bucks a week
and I'll use that to top up the superannuation. You know,
that's a kind of a classic strategy to get a
bit of bit of extra do in. Especially if you
can do that without a mortgage, that's going to start
to become pretty profitable for you.
Speaker 3 (25:35):
Actually, be interesting to know how many people would have
that amount of land available, given that, you know, the
old quarter acre has been subdivided so much, and we
don't have that much land around these days, so it's
sort of nice to have if you had it.
Speaker 4 (25:47):
I think that's definitely fair. We're actually seeing that in
terms of flippers as well. So I was talking to
somebody who really really has been in the flipping game.
So buy property, do it up, sell it on, and
they said to me, it it's actually getting so hard
these days because all of those old villas that I
used to buy up, do up and flick on, they've
all been bought by developers, and developers have knocked them
(26:09):
down and built four to six townhouses there. And so
there's not as many opportunities for me because all of
the old rundown houses have been turned into townhouses now.
And so it would be interesting to see exactly how
many I might have to ask my good friends at
call Logic to help me outcrunch that data.
Speaker 3 (26:25):
There we go, Well, well we'll be having them on
no doubt soon.
Speaker 2 (26:28):
Care Logic.
Speaker 3 (26:29):
I can part. I can be asking for a friend's
by the way, somebody a couple of texts just say,
let's hope it's over for at least five years. It's
totally unaffordable at present. It's the market still what you
would call unaffordable. I mean depends on your income and
all sorts of things, doesn't it.
Speaker 4 (26:48):
But well Affordability is in the eye of the beholder, right,
but it depends where you are. So if you're an Invercargill,
you probably look at the fact that your average house
price is something like four hundred and eighty grand and
you think, oh, mate, that's pretty affordable. But for some
people it actually won't be. The main thing I'd say
is if we look at incomes versus house prices, that
(27:09):
ratio is lower today than what it was pre COVID,
So house prices are currently slightly more affordable than they
were back in kind of the start of twenty twenty
and so I kind of look at my lens on
that and say, houses are expensive, but they are not
quite as expensive as they were in twenty twenty one
or late twenty twenty because incomes have gone up, but
(27:32):
nominal house prices are kind of fifteen percent below the
peak of the market what they were back in November
twenty twenty one.
Speaker 3 (27:39):
As a metaphor, I sort of think that there was
a time when the property market, you know, when it's
really pumping, it's like a tight rope and it's absolutely
pulled taut, and to me it feels like it's slightly
more of a slack line. You can still walk across
the trickier but you know what I mean, there seems
to be a bit more sponginess in terms of your
urgency that you need if you want to get a house,
the urgency you might have felt a few years ago.
(28:00):
You've got a bit more time to really have a
good look around, haven't you.
Speaker 4 (28:02):
Oh ifoemost totally gone out of the mast right, there
ain't no fear of missing out here. But to be honest,
that's just part of where we are within the market cycle.
You know, we had that big oh my gosh, I
need to go now because I can't because there aren't
that many properties on the market that was back in
twenty twenty one. Today there are over thirty thousand properties
(28:24):
available for sale on sites like one Roof. This is
basically a ten year high, and so buyers do feel
like they are able to take their time try and
find the right house, and if they feel like a
seller is not willing to meet them, then they can
move on to the next one. Because there are so
many properties for sale and so it is a great
(28:45):
time for buyers, especially now that the interest rates have
come down. And when I talk about the interest rates.
I'm not just talking about what you actually pay on
your mortgage. I'm also talking about the servicing test rates.
So what the banks actually run their sums on. Now,
about two years ago, start mid twenty twenty three, banks
were still tensting your loan at around nine percent. So
(29:08):
even if you only paid seven percent, I'd say yes,
but could you afforded a nine percent? Today that's down
at seven percent seven point two, and so it's a
lot easier to get a mortgage.
Speaker 3 (29:17):
Actually, And that's you know, these might sound like small
ships and stuff, but that's a massive shift. So you've
got you bought a house for eight hundred thousand dollars,
you might have a six hundred thousand dollars mortgage. So
nine percent test ratus, can you serve us a fifty
four thousand bucks worth of interest a year? That's a
lot of money.
Speaker 4 (29:33):
Yeah, big big. The other thing that has changed over
the last little bit is also do you remember that
rule the triple CFA where there were all these articles, well,
well there were all of these articles that hopefully you
will remember where banks were declining mortgages because of a
one hundred and eighty dollars k marn't visit or two
much on coffee, too much on overeachs. Those rules have
(29:54):
been totally rolled back. Now, labor made a small change,
National has made another change. So it has got easy
to get a mortgage compared to a couple of years ago.
That doesn't mean it's easy to get a mortgage, but
it's easier.
Speaker 3 (30:08):
Excellent. Hey, look, we need to take a break. We'll
be back in just a moment. Talking about the Golden
Age property. There are the topics that creep in as
we're having a fluid discussion around the granny flats and maybe,
I mean maybe the granny flats. The ability to add
one of those is going to contribute to people's ability
to or willingness to invest in property, depending on the
size of the section. Of course, a couple of textas
before we go to the break. Totally agree the Golden
Age is over it at least for now. House prices
(30:30):
versus wage gap is too large. Most houses no longer
make sense as an investment. The numbers don't add up. Well.
I think I can probably guess that Ed might say
currently or at the moment, but who knows in the future. Right,
we'll be back in just a moment. It's twenty to
five new stalks.
Speaker 2 (30:43):
He'd be.
Speaker 4 (30:45):
Yether cool guys, Weather.
Speaker 1 (30:54):
You still have bonds?
Speaker 5 (30:57):
You yell?
Speaker 3 (31:02):
Yes, Welcome back to the one ref radio show. I
guess the Zed mcnighty's a resident economist. Opas partners and
we're talking about as the golden age of property over.
But also the topic of granni flats has crept on
because there's been an announcement that you'll be able to
build a granny flat on your property or pop one
on there up to seventy square meters. Helen, Hello, Oh.
Speaker 6 (31:23):
Good afternoon, Tom and Ed. I'd like to comment on
the what you said about the granny flats. But also,
while I'm thinking about it, I think what a previous
caller was referring to the Winds accommodation supplement which was
subsidizing the high rate rents. That's what he meant. Now
about the granny flats. Now, I'm not quite sure if
(31:45):
I've misunderstood what you were saying, but I understand that
if you're going to have a you can have the
granny flat, and you can have this quite large footprint,
you know, but once you actually have a bathroom, you've
actually got to go through all the consent processes and
all that WED tape, so I'm not quite sure if
(32:06):
I misunderstood you.
Speaker 4 (32:08):
Yeah, that's a great question, Helen. So first of all,
we should say we don't have exactly what the rules are,
but I'll tell you what my understanding of the rules is.
So at the moment, though, you can build a thirty
square meter dwelling on your property, which is basically like
a bedroom or maybe a couple of bedrooms. I kind
of always call them cabins, but you are right that
(32:30):
right now, if you put in a kitchen or a bathroom,
any plumbing, you absolutely need to go through the resource
consent process.
Speaker 6 (32:38):
Now my own, that's what I understood it, So I
just wanted to clarify clarify that. Yeah, thank you.
Speaker 4 (32:44):
Yeah, my understanding of the new rules that are coming
with the seventy square meter dwellings or the seventy square
meta dwell granny flats is that you would be able
to have plumbing in there without needing consent. It just
needs to be signed off by a licensed building practitioner.
I am just very interested in getting exactly what those
rules are so we can confirm that. But I think
it'd be quite counterproductive to be able to build seventy
(33:05):
square met does it not have a bathroom in there?
Speaker 3 (33:08):
I've heard talk about the composting toilets and things, so
that's what people will simply do, is have composting toilets.
But I don't know it. Yeah, I don't know about
the plumbing. But we'll dig into that a bit further.
Because this announcement's just come out. Interesting. They've seen that
the law change they reckon will allow an estimated thirteen
thousand new grandy flats to be built over the next
decade without the need for resource or building consents. I
(33:30):
wonder would that be because they've worked out the number
of properties that would be eligible for it, or I
don't know what it would be thirteen thousand.
Speaker 4 (33:37):
Well, they'd probably look at that as well as well,
what's the willingness for people to actually go ahead and
do it. One thing that's interesting though, that thirteen hundreds
or number seems quite low to me. They're about that
ten thousand, sorry, thirteen thousand over ten years though, yeah,
oh yeah, yeah. So if you say, well, there are
two million properties in New Zealand at the moment, so
(33:57):
we're talking about a fraction of a fraction of a percent.
That's actually quite a bit lower than I thought it
was going to be.
Speaker 3 (34:03):
Maybe they're also looking at the number of people applications
under the existing rules and that's given them a number. Anyway,
let's look at a few other texts just on the
golden age of property. Let's hope it's over. Property needs
to be more a social investment in your family. Stock
goes up and good dividends help. We need to invest
in productivity. Well, property needs to be more of social
(34:25):
investment in your family. Well, I would imagine most people
who invest in property think it's good for their family
because they've got more money to do with what they
want with their lives.
Speaker 4 (34:31):
Yeah, but I think that what they're really saying as
well is you should buy a house because you want
your family to live in it, rather than have it
as an investment. The one thing that I always say is, yeah,
but where are the tenants going to go? So even
when home ownership was at its highest tim which was
back in nineteen ninety one, a quarter of people still rented.
And so given that there are two million properties in
(34:52):
New Zealand, was still going to need it kind of
five hundred thousand rental properties.
Speaker 3 (34:56):
It's funny that it always gets lost that people assume
that it's only because of whatever the problem is in
the property market that we've got all these people renting.
It's actually no, no, it's because of the life you know,
the lives of people who just want to rent. And
people are starting at early and there in their twenties
or early nor thirties. It's just the way it is
for people. You're transient, you live here for a bit,
(35:17):
maybe you'll travel a bit, you're saving up for a house.
There's I mean, it is funny how we often forget
that in the arguments like that there is always going
to be a number of people renting.
Speaker 4 (35:26):
And that could be life stage. Like when I was
twenty one living in Hamilton, Hamilson is coming up a
lot today. I wasn't buying a property because I couldn't.
I was studying at university. Simply, people move around the
country a lot. So if you decide that you're going
to move from Auckland down to christ you're probably going
to rent for a bit. And so we do need rentals,
and I think the demand side kind of people don't
(35:48):
always think about it when they say, oh, landlord bad.
Speaker 5 (35:51):
No.
Speaker 3 (35:52):
Actually, probably the most irritating side of the arguments around
property policy is when people assume that one band of
New Zealander, I tenant or a landlord is bad. On
the other side, is good. You know what good and
bad of everything? Really, But anyway, hey, we need to
take a break because we're coming back with the one
roof property of the week, which is pretty flash. Actually
(36:13):
it's near where I live, which doesn't mean that where
I live is flash. But you know, I'm happy with
where I live, but this place I probably would trade
places if I could just do a property swap, but
I somehow I think that's not on the cards with
this one. It's eleven minutes to five news talks. He'd
be everybody was going.
Speaker 4 (36:31):
The fastest, flatly infected.
Speaker 3 (36:40):
That's welcome back to the One Roof radio show. My
guest is Ed McKnight. It is eight minutes to four,
which means it is time for the here we Go,
the wonderful I'm going to let this sting play. Actually
just to here we go, I think, But.
Speaker 1 (36:55):
There we go the one roof property of the week
on the weekend Collective just.
Speaker 3 (37:00):
My producer Tyre got caught out by feeling so smug
about it. Isn't my song choice. Just I'm just nailing
it today with a bit of kung fu fighting. Anyway,
this is the one roof property of the week. Is
a stunner. As I say, it's always like going on holiday.
Ed's had to look at it as well. It's pretty good.
Two nine eight b Ridell Road, glen Dowie, Auckland. It's
five bedrooms, two bathrooms, three k garage garage, garage. I
(37:22):
guess it's so this is such a nice house. I
think we're going to say garage. The house is three
hundred and seventy three square meters with land of five
hundred square meters. It's park like surrounds with harbor views
and the harbor views. When it says harbor views, it's
not just peeking out the toilet window. The harbor views
are absolutely stunning. It's got a powered light elevator. I
(37:44):
don't know what that means, but if you're in that
market you might know. European oak engineered flooring. Gorgeous again,
and it's just I don't know how to describe it.
I'm going to hand it over to ed because you've
had a look at it ed, what do you reckon?
It's not bad.
Speaker 4 (37:58):
Well, not bad. It's an understatement. This is obviously a
brand new home. Five odd bedrooms there. I always like
it between a new built house has a bedroom on
the ground floor these days, very good for guests, but
also good for older people and when you have a
little bit more generational living, people certainly look out for
that one little thing that I'll always point out to
people if they're trying to figure out whether it's a
(38:18):
brand new house or not. Most brand new houses do
not come with curtains or blinds. So if you flick
through the if you flick through the photos on this one,
you'll see that there's pretty much no blinds that I
can see, no curtains because those are generally not included
and the first time owner decides what's to put what
to put.
Speaker 3 (38:36):
In fun fact, I had never noticed that. But it's
also photographs so well, because curtains always I don't know.
Speaker 4 (38:43):
There's something about the open aspect to every view. Now
there's one thing I've just got to pack up though.
So there's a beautiful master living room. So on the
top floor we've got the main bedroom and we've also
got a living room. But you've got clear glass between
the bedroom and the living room. So if any peepig
(39:03):
Tom's crept up at night, all your kids came up.
I'm not sure how I feel about that you've got
kids about that, Tim, So I'm trying to show you
here because it's got the laptop up, a clear glass
in between the bedroom and the master living room on
the top floor.
Speaker 3 (39:18):
I thought there was a mirror.
Speaker 4 (39:20):
No, no, no, I'd be too embarrassed to sleep at
that bedroom. I'd beat down on the first floor with gradmar.
Speaker 3 (39:26):
Maybe it's not really a bedroom. They've shoved a bed
in there so they can say it's five bedrooms. Really,
maybe it's four bedrooms. Anyway, Look it's yours for around
five mil. I think it's going to be priced by negotiation.
An estimate of the one roof estimate is four point
five six. The RV is five point one five. So
that's interesting half a million cheaper than the RV. As
(39:46):
we've discussed previously, ed RV's not a hell of a
lot of use, are they when it comes to working out.
Speaker 4 (39:52):
That doesn't really surprise me at the moment. Auckland Homes
is selling about nine to ten percent below RV. That's
just because they were set at a time when house
prices were much higher. So I wouldn't look at that
and say, well, that's just a massive discount there. This
is a discounted property and I'm getting an absolutely great
deal that's probably market rates at the moment.
Speaker 3 (40:10):
Yeah, So if you're curious, go and have a look
it is. The does look like mirror. I reckon they
look like mirrors, but now you might be right, but yes,
go and check out the property on it. It's two
nine to eight b Riddell Road in glenn Daley Auckland City.
And look the views as are stunning and the outdoor living.
It's the sort of house that, to be honest, if
(40:31):
I won the lotto, i'd be I'd be popping around
and just requesting a private viewing and see if I could.
And I don't mean just the lotto for four or
five mil, because I still wouldn't be able to afford it.
It'd be the lotto when it gets up to twenty
and it goes to me. Anyway, Great to see.
Speaker 4 (40:46):
Them, mate, great to be here, Tim, thanks for having
me look.
Speaker 3 (40:48):
Forward to next time you can check out go to
ops dot co, dot n z, I think close Open's partners.
I'm sure if you just google them we'll find it
as well. Hey look we're back with the parents Squad.
Sarah Chatwin's with us. It's this is news Talk, said b.
It's three and a half minutes, two five. That's the
best for
Speaker 1 (41:10):
For more from the Weekend Collective, listen live to News
Talks it be weekends from three pm, or follow the
podcast on iHeartRadio.
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