1
00:00:03,480 --> 00:00:05,120
Speaker 1: We've got just a little bit of time for a

2
00:00:05,120 --> 00:00:07,280
Speaker 1: couple of the listener questions that have come through, and

3
00:00:07,320 --> 00:00:09,520
Speaker 1: I wanted to hit you with one of those, a

4
00:00:09,640 --> 00:00:11,920
Speaker 1: land value tax. What are your thoughts on a land

5
00:00:12,000 --> 00:00:12,600
Speaker 1: value tax?

6
00:00:12,840 --> 00:00:14,800
Speaker 2: Well, we sort of already have that in the form

7
00:00:14,840 --> 00:00:17,680
Speaker 2: of rates. The higher the value of your land or

8
00:00:17,680 --> 00:00:20,240
Speaker 2: your property generally, the more you're going to pay in rates.

9
00:00:20,520 --> 00:00:23,360
Speaker 2: And I think the last thing that ratepayers want to

10
00:00:23,400 --> 00:00:26,639
Speaker 2: do is see a new specific tax come along, presumably

11
00:00:26,680 --> 00:00:29,240
Speaker 2: from the central government level as opposed to the local

12
00:00:29,280 --> 00:00:31,920
Speaker 2: government there and get them even more up in arms,

13
00:00:32,760 --> 00:00:35,080
Speaker 2: because there's a lot of pain out there already. And

14
00:00:35,120 --> 00:00:38,280
Speaker 2: if we look at Wellington specifically, where we've got the

15
00:00:38,320 --> 00:00:41,800
Speaker 2: newspapers reporting on people's rates. In Corori, you're going to

16
00:00:41,800 --> 00:00:43,519
Speaker 2: go from two and a half thousand a couple of

17
00:00:43,560 --> 00:00:46,120
Speaker 2: years ago to eleven thousand dollars and five or six

18
00:00:46,200 --> 00:00:48,559
Speaker 2: years time, and there's a lot of older people realizing

19
00:00:48,600 --> 00:00:50,280
Speaker 2: they're not going to be able to afford to stay

20
00:00:50,280 --> 00:00:52,360
Speaker 2: in their property any longer. And I think this is

21
00:00:52,400 --> 00:00:54,120
Speaker 2: going to be one of the dynamics in the housing

22
00:00:54,120 --> 00:00:57,480
Speaker 2: market the next few years. Maybe a bit more cashing up.

23
00:00:57,600 --> 00:00:59,959
Speaker 2: We used to call it Now, it's just force south

24
00:01:00,240 --> 00:01:03,000
Speaker 2: out of the cities in New Zealand and maybe moving

25
00:01:03,000 --> 00:01:06,240
Speaker 2: to the more affordable regions as long as there's a

26
00:01:06,240 --> 00:01:09,840
Speaker 2: hospital nearby, good access to health services, good transport for

27
00:01:09,880 --> 00:01:12,080
Speaker 2: the grandkids visiting that sort of thing. I think that's

28
00:01:12,080 --> 00:01:13,600
Speaker 2: going to be a sort of an extra overlay in

29
00:01:13,640 --> 00:01:16,800
Speaker 2: these markets. And I don't think any thing specific like

30
00:01:16,880 --> 00:01:19,240
Speaker 2: a land takes is going to come along. And also

31
00:01:19,560 --> 00:01:22,399
Speaker 2: I hope not. I guess as a landowner.

32
00:01:23,200 --> 00:01:25,000
Speaker 1: Takes me a next question because I guess you can

33
00:01:25,040 --> 00:01:27,080
Speaker 1: only sell up and move out if there's someone really

34
00:01:27,440 --> 00:01:29,880
Speaker 1: come into the city and buy. And you know, we're

35
00:01:29,920 --> 00:01:34,119
Speaker 1: seeing immigration really move around. We're seeing again that dreaded

36
00:01:34,200 --> 00:01:38,000
Speaker 1: brain drain phrase come up again. Are there specific policies

37
00:01:38,000 --> 00:01:39,520
Speaker 1: that you think we need to be looking at to

38
00:01:39,560 --> 00:01:43,920
Speaker 1: address that issue brain drain of younger and able people

39
00:01:44,200 --> 00:01:45,800
Speaker 1: heading off shore for better opportunities.

40
00:01:45,880 --> 00:01:48,440
Speaker 2: I'd say not really, because it's one of the phenomena

41
00:01:48,560 --> 00:01:53,200
Speaker 2: of New Zealand society, our culture that we're relatively small

42
00:01:53,320 --> 00:01:56,560
Speaker 2: in New Zealand, we're exposed to the outside world and

43
00:01:56,560 --> 00:01:58,960
Speaker 2: we go look out all those big buildings over in Sydney.

44
00:01:59,000 --> 00:02:01,080
Speaker 2: That was me back in the early nineteen eighties. I've

45
00:02:01,120 --> 00:02:03,600
Speaker 2: definitely got to get across there. I remember studying road

46
00:02:03,600 --> 00:02:05,560
Speaker 2: maps and think, oh, look at that's George Street and

47
00:02:05,600 --> 00:02:07,640
Speaker 2: all this sort of thing, and so go overseas and

48
00:02:07,680 --> 00:02:10,800
Speaker 2: have some experience, and I think it's always going to happen.

49
00:02:10,800 --> 00:02:13,040
Speaker 2: And we've got a net loss of KEI we citizens

50
00:02:13,080 --> 00:02:15,160
Speaker 2: in the past year of about forty four thousand, which

51
00:02:15,200 --> 00:02:17,240
Speaker 2: is about twice the average for the past twenty to

52
00:02:17,280 --> 00:02:19,760
Speaker 2: twenty five years, so it is relatively strong at the moment.

53
00:02:19,919 --> 00:02:21,760
Speaker 2: I think some of that will dampen down in the

54
00:02:21,880 --> 00:02:24,919
Speaker 2: very near future, but not disappear entirely. And a key

55
00:02:25,000 --> 00:02:28,520
Speaker 2: driver is New Zealand's labor market versus Australia. They get

56
00:02:28,560 --> 00:02:30,440
Speaker 2: a four point one percent unemployment rate. We're at five

57
00:02:30,480 --> 00:02:32,680
Speaker 2: point one percent. People are going to move across.

58
00:02:32,400 --> 00:02:33,520
Speaker 1: The heading to five point three.

59
00:02:33,560 --> 00:02:35,680
Speaker 2: If we believe the prediction, maybe we go up slightly

60
00:02:35,680 --> 00:02:38,480
Speaker 2: slightly high. And then I'm reading the Irish Independent newspaper

61
00:02:38,520 --> 00:02:41,639
Speaker 2: the other day about a young woman who's moved across

62
00:02:41,720 --> 00:02:45,280
Speaker 2: into Western Australia, driving these big rigs across there, earning

63
00:02:45,280 --> 00:02:48,239
Speaker 2: fifty five dollars an hour, and she plans working maybe

64
00:02:48,240 --> 00:02:50,320
Speaker 2: one or two years and then shifting back to Ireland

65
00:02:50,560 --> 00:02:52,480
Speaker 2: and be able to lay down a deposit on the house.

66
00:02:52,600 --> 00:02:54,680
Speaker 2: We've always done that in New Zealand as well, so

67
00:02:54,919 --> 00:02:58,040
Speaker 2: we can't really, I think expect that the brain drain

68
00:02:58,320 --> 00:03:00,240
Speaker 2: is necessarily going to be sort of cat to of

69
00:03:00,320 --> 00:03:02,760
Speaker 2: keeping the young people in New Zealand. What does concern

70
00:03:02,800 --> 00:03:06,800
Speaker 2: me a bit is the newer development recently the parents

71
00:03:07,000 --> 00:03:09,440
Speaker 2: of those kids, they are starting to go as well.

72
00:03:09,600 --> 00:03:12,440
Speaker 2: My neighbors have done it, two sons both living and

73
00:03:12,480 --> 00:03:15,000
Speaker 2: working on the Gold Coast in Australia, and three months

74
00:03:15,040 --> 00:03:17,120
Speaker 2: ago they decided we're following them and they just put

75
00:03:17,160 --> 00:03:19,600
Speaker 2: their place on the market. Gone within four weeks essentially.

76
00:03:19,680 --> 00:03:22,000
Speaker 1: So what's the risk there that you get people don't

77
00:03:22,040 --> 00:03:24,800
Speaker 1: come home to family because the family has gone to

78
00:03:24,840 --> 00:03:26,640
Speaker 1: them kind of thing, and you don't see that brain

79
00:03:27,040 --> 00:03:27,800
Speaker 1: gain return.

80
00:03:27,919 --> 00:03:29,360
Speaker 2: Yeah, it's one of the reasons why I say the

81
00:03:29,400 --> 00:03:32,720
Speaker 2: Auckland population has continue to grow because your family is

82
00:03:32,800 --> 00:03:35,040
Speaker 2: near there and so you stay there. It'll be a

83
00:03:35,120 --> 00:03:36,680
Speaker 2: limit on how many you sell up in Auckland and

84
00:03:36,760 --> 00:03:38,920
Speaker 2: go somewhere else for cheaper rates, for instance. And so

85
00:03:39,200 --> 00:03:41,000
Speaker 2: if your kids are overseas, where your grandkids are going

86
00:03:41,000 --> 00:03:43,440
Speaker 2: to be overseas. If you want to you have that interaction,

87
00:03:43,800 --> 00:03:46,640
Speaker 2: then maybe you shift across as well in the middle

88
00:03:46,640 --> 00:03:48,400
Speaker 2: of your career. So it's a mid carea sort of

89
00:03:48,440 --> 00:03:51,960
Speaker 2: forties early fifties sort of a cohort that's moving across there.

90
00:03:52,200 --> 00:03:54,800
Speaker 2: We shouldn't forget that there are probably two or three

91
00:03:54,800 --> 00:03:57,400
Speaker 2: billion people who if you said to them, come in,

92
00:03:57,640 --> 00:03:59,520
Speaker 2: would hop on the plane and come in tomorrow to

93
00:03:59,520 --> 00:04:03,040
Speaker 2: New Zealand. And so that's a sort of a skill swap,

94
00:04:03,160 --> 00:04:04,920
Speaker 2: which has always been the case for New Zealand.

95
00:04:05,040 --> 00:04:07,360
Speaker 1: Yeah, we're drinking from the fire hose there, as they say,

96
00:04:08,160 --> 00:04:11,000
Speaker 1: in terms of that younger generation that the oldies might

97
00:04:11,040 --> 00:04:13,440
Speaker 1: be moving a bit closer to. We've got a question

98
00:04:13,600 --> 00:04:17,239
Speaker 1: about what sort of long term financial education we should

99
00:04:17,240 --> 00:04:19,760
Speaker 1: be trying to give our young people, particularly at school

100
00:04:19,800 --> 00:04:22,440
Speaker 1: or wherever. What are some takeaways that you think.

101
00:04:22,560 --> 00:04:24,680
Speaker 2: I think it's a bit more than just you need

102
00:04:24,720 --> 00:04:28,080
Speaker 2: to say for your retirement. Certainly, I think just increasing

103
00:04:28,120 --> 00:04:30,560
Speaker 2: the awareness of by saving through key we savor you

104
00:04:30,600 --> 00:04:32,480
Speaker 2: can build up a deposit there. So that's one way

105
00:04:32,480 --> 00:04:35,320
Speaker 2: to get into the housing market later on. But frankly,

106
00:04:35,520 --> 00:04:37,599
Speaker 2: the idea of buying your house when you're at school.

107
00:04:37,600 --> 00:04:40,240
Speaker 2: It's just it's irrelevant. You're not thinking about it.

108
00:04:40,400 --> 00:04:42,760
Speaker 1: Saying about buying a v at the dairy probably exactly,

109
00:04:42,800 --> 00:04:43,120
Speaker 1: that's right.

110
00:04:43,160 --> 00:04:46,240
Speaker 2: It's a totally different mindset that you've got there, and

111
00:04:46,320 --> 00:04:48,440
Speaker 2: retirement is just way way down in the future. You're

112
00:04:48,440 --> 00:04:50,160
Speaker 2: probably going to be run over by a bus before then,

113
00:04:50,279 --> 00:04:52,360
Speaker 2: is what we always used to say back in my day. Anyway,

114
00:04:52,400 --> 00:04:55,719
Speaker 2: in the nineteen seventies. I think it's probably more important

115
00:04:55,760 --> 00:04:58,040
Speaker 2: to focus where more and more schools have been doing

116
00:04:58,080 --> 00:05:01,200
Speaker 2: the past two decades, on the entrepreneur worship, on setting

117
00:05:01,279 --> 00:05:04,080
Speaker 2: up your own business, and there is an eagerness of

118
00:05:04,120 --> 00:05:07,520
Speaker 2: young people out there because of the accessibility of developing

119
00:05:07,520 --> 00:05:10,640
Speaker 2: your own apps. Learn AI, get the AI to do

120
00:05:10,680 --> 00:05:14,040
Speaker 2: all the coding for you. And my youngest son first

121
00:05:14,080 --> 00:05:18,279
Speaker 2: year at university, he's involved with a group rinter developing

122
00:05:18,320 --> 00:05:20,440
Speaker 2: an app looking at better matching of the tenants with

123
00:05:20,520 --> 00:05:23,680
Speaker 2: the landlords, for instance. I'd have never thought of anything

124
00:05:23,760 --> 00:05:25,360
Speaker 2: like that when I was first year of varsity back

125
00:05:25,400 --> 00:05:28,400
Speaker 2: in nineteen eighty. But more of the education of have

126
00:05:28,520 --> 00:05:31,200
Speaker 2: a go, set up a little startup, et cetera. That's

127
00:05:31,240 --> 00:05:35,080
Speaker 2: what I would focus on, rather than just financial budgeting

128
00:05:35,480 --> 00:05:36,960
Speaker 2: of sort of stuff. I think it's got to go

129
00:05:37,000 --> 00:05:37,960
Speaker 2: a little step beyond that.

130
00:05:38,279 --> 00:05:40,760
Speaker 1: Yeah, good, I guess, because that's where we've seen the focus,

131
00:05:40,760 --> 00:05:42,960
Speaker 1: haven't we. They've talked about more financial literacy, but it's

132
00:05:42,960 --> 00:05:45,360
Speaker 1: actually like, well, what are you going to read? Now

133
00:05:45,400 --> 00:05:47,040
Speaker 1: you literate? What are you going to write?

134
00:05:47,279 --> 00:05:47,640
Speaker 2: Yeah?

135
00:05:47,720 --> 00:05:49,560
Speaker 1: Yeah, what are you going to do about it?

136
00:05:49,600 --> 00:05:52,480
Speaker 2: And the world is filled with examples, including many people

137
00:05:52,480 --> 00:05:55,200
Speaker 2: from New Zealand who started out with very very little,

138
00:05:55,560 --> 00:05:57,400
Speaker 2: and while we still have the people who then set

139
00:05:57,480 --> 00:05:59,400
Speaker 2: up a factory and grew from there, or they got

140
00:05:59,440 --> 00:06:02,679
Speaker 2: into the beverage distribution business and grew and made millions

141
00:06:02,680 --> 00:06:05,240
Speaker 2: from there. Just setting up an app and it goes

142
00:06:05,320 --> 00:06:07,760
Speaker 2: viral and everybody wants it, and all of a sudden,

143
00:06:07,800 --> 00:06:11,000
Speaker 2: there's three hundred million dollars there. You know, it's moved

144
00:06:11,000 --> 00:06:14,920
Speaker 2: a step beyond Sam Morgan setting up trade me and

145
00:06:14,960 --> 00:06:18,159
Speaker 2: selling it for our seven hundred million dollars, for instance.

146
00:06:18,520 --> 00:06:21,200
Speaker 2: It's beyond that into the whole app area and these

147
00:06:21,240 --> 00:06:21,760
Speaker 2: other areas.

148
00:06:21,839 --> 00:06:23,760
Speaker 1: Now they're buying the papers back there we go, there

149
00:06:23,760 --> 00:06:23,960
Speaker 1: we go