WEBVTT - Martin Cooper: There will be mistakes with council valuations 0:00:05.721 --> 0:00:09.281 You're listening to the Weekend Collective podcast from News Talk, 0:00:09.361 --> 0:00:46.481 said B. 0:00:48.081 --> 0:00:51.041 Yes, welcome back to the Weekend Collective. I'm Tim Beverage 0:00:51.801 --> 0:00:53.721 and this is the one with radio show. Don't forget 0:00:53.721 --> 0:00:55.201 if you miss any of the hours, we get them 0:00:55.201 --> 0:00:57.961 loaded up online pretty quickly after each hour concludes. You 0:00:57.961 --> 0:00:59.321 can go to news Talk, said B, look for the 0:00:59.321 --> 0:01:03.481 Weekend Collective or to iHeartRadio. In fact that I think 0:01:03.521 --> 0:01:06.041 that that that little bit of Bob Man there, I 0:01:06.161 --> 0:01:08.281 think that might be the first time we've played near 0:01:08.281 --> 0:01:10.521 Bob Marley on the show, which I'm almost ashamed to say. 0:01:10.561 --> 0:01:11.881 As soon as I heard it, I was think, I 0:01:11.921 --> 0:01:15.001 don't think we've had that. But the songs, we often 0:01:15.521 --> 0:01:18.721 let our guests choose the song, and that song was 0:01:18.761 --> 0:01:21.001 chosen by a new guest we're having on the show 0:01:21.041 --> 0:01:23.201 for this hour, who I'm going to introduce in just 0:01:23.241 --> 0:01:26.041 a moment, but we're going to have a chat initially 0:01:26.241 --> 0:01:30.041 about CVS. SO CVS and Auckland came out last week 0:01:30.121 --> 0:01:34.721 and there were basically many people surprised to see their 0:01:34.721 --> 0:01:38.201 properties are valued about nine percent less on average. There 0:01:38.241 --> 0:01:39.921 were some people who went up a bit I think 0:01:39.961 --> 0:01:42.681 actually funny enough, I went down exactly nine percent, and 0:01:42.721 --> 0:01:45.041 I couldn't give two hurts about it, but there were 0:01:45.041 --> 0:01:47.521 plenty of people. There was quite a lot of conversation 0:01:47.601 --> 0:01:52.161 about it, what it meant for buyers, expectations, sellers, expectations, 0:01:52.201 --> 0:01:55.081 attitudes towards prices. Even though many of the guests I've 0:01:55.081 --> 0:01:57.721 had on the show will tell you if it comes to, 0:01:57.961 --> 0:02:00.481 you know, getting an appraisal on what your property is worth, 0:02:00.521 --> 0:02:03.441 the CV's not worth very much. Well, maybe the two 0:02:03.481 --> 0:02:06.001 words are very much, how much very much? Is it 0:02:06.001 --> 0:02:08.121 worth much at all? And should they have any bearing 0:02:08.121 --> 0:02:10.521 on it? Should there be a different system? But do 0:02:10.601 --> 0:02:14.801 you care about your council valuation? And what effect do 0:02:14.841 --> 0:02:16.281 you think it will have on the market. We'd love 0:02:16.321 --> 0:02:18.361 to get your calls on that. On eight hundred and 0:02:18.361 --> 0:02:20.921 eighty ten eighty. Anyway, as I mentioned, our song three 0:02:20.921 --> 0:02:24.001 Little Birds by Bob Marley was chosen by a new guest. 0:02:24.041 --> 0:02:27.121 He's managing director at Harcourt's Cooper and Co. And his 0:02:27.241 --> 0:02:29.521 name there's a hint there with the Cooper. It's Martin 0:02:29.521 --> 0:02:32.561 Cooper GEO. Martin, How you going very good, very good? 0:02:32.601 --> 0:02:35.041 Thank you, Nice to have you in the studio. How 0:02:35.041 --> 0:02:36.521 long have you been in the real estate game. 0:02:36.561 --> 0:02:40.121 For Oh well, I sold my first house in nineteen 0:02:40.201 --> 0:02:43.921 eighty three for thirty four thousand, five hundred dollars. 0:02:44.881 --> 0:02:47.081 You mean you mean you owned the house or you 0:02:47.121 --> 0:02:47.601 were agent? 0:02:47.721 --> 0:02:50.921 As an agent my first sale back in McAndrew Bay, 0:02:50.921 --> 0:02:54.601 down in Dunedin. So I do Korea nights, And I 0:02:54.801 --> 0:02:59.321 often say to people entering the business, so who wasn't 0:02:59.361 --> 0:03:03.121 born in nineteen eighty three? And there's a wave of hands. 0:03:03.161 --> 0:03:06.681 So funny. For the first first ten years I was 0:03:06.801 --> 0:03:10.201 the youngest person in the office, and maybe my last 0:03:10.201 --> 0:03:13.881 ten years I'll be the oldest. So you go through transitions. 0:03:14.281 --> 0:03:17.161 Wow, thirty four k actually back in nineteen eighty three, 0:03:17.201 --> 0:03:21.201 I'm trying to think. Was that an expensive property back then? 0:03:21.641 --> 0:03:23.801 No, it was a mid range sort of home and 0:03:24.841 --> 0:03:27.121 Muldoon was our prime minister. We had to wage in 0:03:27.241 --> 0:03:31.121 price freeze, so interest rates for at seven percent. Eighteen 0:03:31.161 --> 0:03:34.121 months later they'd gone up with rogernomics to about twenty 0:03:34.121 --> 0:03:34.801 two percent. 0:03:35.001 --> 0:03:39.441 Oh that time, man, Oh my goodness. So actually, what 0:03:39.641 --> 0:03:42.881 was that like being an agent? Were you was you 0:03:42.921 --> 0:03:45.161 sold your first house? Was that the start of a 0:03:45.201 --> 0:03:47.121 career in real estate? NonStop? 0:03:47.361 --> 0:03:47.601 Yep? 0:03:47.681 --> 0:03:51.641 So you went right through that era, because the calls 0:03:51.681 --> 0:03:54.761 over the years that I've hosted this show, always there's 0:03:54.761 --> 0:03:56.521 one that pops up. People say, oh, you could buy 0:03:56.521 --> 0:03:58.361 a house on Northcote for one hundred and fifty thousand, 0:03:58.401 --> 0:04:00.761 and somebody said, yeah, I bought one hundred fifty thousand, 0:04:00.761 --> 0:04:04.721 My mortgage was twenty two percent. How long did that last? 0:04:04.721 --> 0:04:08.921 The two Well, yeah, Rogernomic's the free market after a 0:04:08.921 --> 0:04:11.561 wage and price freeze, moulding government for years, and then 0:04:12.161 --> 0:04:14.601 off it went right up to you know, it was 0:04:14.681 --> 0:04:17.361 sometimes eighteen nineteen twenty, but up to twenty two percent 0:04:17.401 --> 0:04:21.761 first mortgage rates. And I remember a whole year nineteen 0:04:22.121 --> 0:04:26.521 eighty six selling I sold about forty homes that year, 0:04:26.561 --> 0:04:29.561 and none of the sellers were happy that year with 0:04:29.721 --> 0:04:32.681 the sale price because they were selling for less because 0:04:32.721 --> 0:04:35.121 interest rates had gone through the roof. They were selling 0:04:35.121 --> 0:04:38.081 for less than what they wanted. But so there was animosity. 0:04:38.161 --> 0:04:40.681 There was drama at those times, but you'd see them 0:04:40.681 --> 0:04:42.681 four or five days later and they'd come across. I 0:04:42.681 --> 0:04:45.361 remember someone running cross the street to say almost giving 0:04:45.401 --> 0:04:48.121 me a hug, and he said, I'm sorry, I was 0:04:48.161 --> 0:04:50.921 so angry when we were signing that contract. But I've 0:04:51.001 --> 0:04:53.721 never slept better knowing I've got rid of my twenty 0:04:53.761 --> 0:04:57.041 two percent interest rate mortgage. You know the burden of 0:04:57.121 --> 0:05:02.361 that reoccurring amount. So but look, whether it's a good 0:05:02.401 --> 0:05:04.681 market or a bad market, there's always people need to 0:05:04.681 --> 0:05:05.761 be acting. 0:05:05.921 --> 0:05:09.321 So that actually, how many propitis did you sell in 0:05:09.401 --> 0:05:09.841 eighty six? 0:05:09.881 --> 0:05:13.081 Did you say I personally sold? I just did forty. 0:05:13.401 --> 0:05:16.561 That it sounds like quite a good success rate. 0:05:16.681 --> 0:05:20.521 Is that I enjoyed real estate. I found it before 0:05:21.081 --> 0:05:23.441 that I was a sales rep, proficient pike or great 0:05:23.481 --> 0:05:25.241 company to work for. But it didn't matter if I 0:05:25.281 --> 0:05:27.881 was good, bad, or average. I just got my salary 0:05:27.881 --> 0:05:28.561 every fortnight. 0:05:28.841 --> 0:05:31.041 What's the worst year you've had in real estate? I mean, 0:05:31.161 --> 0:05:33.281 we don't want to focus on negatives, but I just 0:05:33.281 --> 0:05:36.521 thought we're talking about twenty two percent interest, angry customers, 0:05:36.561 --> 0:05:41.241 and yet you sold quite a few properties. What's the 0:05:41.281 --> 0:05:44.121 worst year I've been for you or for the market 0:05:44.121 --> 0:05:45.881 that you look back and go that sucks. 0:05:45.921 --> 0:05:49.201 Well, it's a weird thing. I'd have to go back 0:05:49.241 --> 0:05:55.561 to February, February, March April of twenty twenty three. So 0:05:55.601 --> 0:05:57.801 you'd think after being in real estate for so many 0:05:57.881 --> 0:06:00.161 years that i'd have it nailed and know what I 0:06:00.281 --> 0:06:03.281 was doing, but I just bought a whole lot of 0:06:03.281 --> 0:06:07.081 offices up in the Rodney are And then we had 0:06:07.081 --> 0:06:12.761 that big flood cyclone drama. We had repercussions of the 0:06:12.881 --> 0:06:17.401 labor government borrowing that ninety seven point five billion dollars, 0:06:17.481 --> 0:06:20.521 so we had the cost of living crisis. Interest rates 0:06:20.521 --> 0:06:24.921 were going up, and I was losing a substantial amount 0:06:25.001 --> 0:06:27.441 of money, and I remember my accountant saying, you know 0:06:27.481 --> 0:06:30.721 that war chest we put away. If we don't turn 0:06:30.761 --> 0:06:33.241 this around, we're going to run out of money. And 0:06:33.281 --> 0:06:35.761 I just thought, this isn't what I signed up for. 0:06:35.881 --> 0:06:38.001 I should be at the what year was this? This 0:06:38.081 --> 0:06:42.401 is back in twenty twenty three. The volumes were very 0:06:42.481 --> 0:06:45.601 very low in the Auckland market. Not sure our core 0:06:45.641 --> 0:06:48.161 market four hundred and fifty sales would be the average 0:06:48.601 --> 0:06:50.841 right across all the industry, you know, all the agents, 0:06:51.441 --> 0:06:53.281 and there was a couple of months there was under 0:06:53.281 --> 0:06:55.801 one hundred and seventy one hundred and seventy six one month, 0:06:56.161 --> 0:06:58.841 so we're all dishing out the pizza pie, you know, 0:06:58.921 --> 0:07:02.961 to get the meal from. There was very very little 0:07:03.001 --> 0:07:06.721 going on at that time. So that's my most recent 0:07:06.841 --> 0:07:10.801 memory but hey, overall, it's been a great industry to 0:07:10.841 --> 0:07:12.801 be in and been a pleasure. 0:07:13.441 --> 0:07:13.641 Hey. 0:07:14.321 --> 0:07:17.241 Look, as I mentioned to the callers on and eighty, 0:07:17.361 --> 0:07:21.161 so the cvs are Auckland and Lock cvs. Auckland's had 0:07:21.201 --> 0:07:25.481 its big announcement with those those having changed. I confessed 0:07:25.801 --> 0:07:27.481 I fell for the hype and I went straight onto 0:07:27.481 --> 0:07:31.401 the Auckland Council Valuation website to find what my property, 0:07:31.961 --> 0:07:34.361 our property was worth. But I did hear a lot 0:07:34.401 --> 0:07:36.841 of chat that people were upset that their properties had 0:07:36.841 --> 0:07:39.961 fallen in price and what it means for sellers and buyers. 0:07:40.641 --> 0:07:45.321 What's your take, Martin on just the relevance or the 0:07:45.441 --> 0:07:53.201 lack of relevance of council valuations. Well, because theoretically versus emotion, 0:07:53.401 --> 0:07:58.361 I guess because you know people's you might say to me, sorry, 0:07:58.401 --> 0:08:00.241 I've chopped you off before you started. I thought i'd 0:08:00.241 --> 0:08:04.681 flesh out the question people often say. And on the 0:08:04.681 --> 0:08:08.481 shows I mentioned and the core logic people, et cetera, 0:08:08.601 --> 0:08:10.801 and everyone will say who has a bit to do 0:08:10.841 --> 0:08:13.361 with valuations? That cvs have very little to do with 0:08:13.441 --> 0:08:15.721 it in terms of putting any stock in them. And 0:08:15.841 --> 0:08:20.081 yet it seems that there's still a number that people 0:08:20.161 --> 0:08:22.801 pay attention to. So what role do they play there? 0:08:22.801 --> 0:08:24.241 We go, I'll shut up, now it's over there. 0:08:24.961 --> 0:08:29.641 Well I think okay, firstly, if we look at just 0:08:29.881 --> 0:08:35.001 overall data, okay, it's it's an evaluation so that you 0:08:35.041 --> 0:08:38.281 can have at tax on your property. So if we 0:08:38.321 --> 0:08:42.681 look at Auckland, for example, there's in the Auckland Greater 0:08:43.401 --> 0:08:47.601 City area there's six hundred and thirty thousand radable properties, 0:08:48.241 --> 0:08:51.321 so every three years they've got to be valued. So 0:08:51.361 --> 0:08:54.841 it's a massive task. But no one it's all done online, 0:08:54.921 --> 0:08:57.001 you know, just algorithms and it's not. 0:08:56.921 --> 0:08:58.881 Like someone walks past your property and has a walk 0:08:58.921 --> 0:09:00.721 around and it's the paint. 0:09:00.521 --> 0:09:02.801 And what happens. No, they haven't. No one's been to 0:09:02.841 --> 0:09:05.641 my house to check it out. So that and from 0:09:05.681 --> 0:09:08.521 those rates like the Auckland City Council just their their 0:09:09.081 --> 0:09:13.041 ratable income is I think was two no year, two 0:09:13.121 --> 0:09:15.601 hundred and forty billion dollars they collect off the rate 0:09:15.601 --> 0:09:19.081 payers of Auckland. So if you're going to live in 0:09:19.081 --> 0:09:21.641 the same house for forty years and you've got a 0:09:21.721 --> 0:09:25.881 very low rateable value, you could be disappointed because it 0:09:25.961 --> 0:09:28.521 might affect some buyers and impression of what your value is. 0:09:28.521 --> 0:09:30.681 Oh yeah, but if you're paying out the rates, just 0:09:30.721 --> 0:09:33.001 sit on that low valuation because you're going to pay 0:09:33.241 --> 0:09:33.921 less rates. 0:09:34.161 --> 0:09:37.121 Well, see, that's that's the first thing. It affects how 0:09:37.201 --> 0:09:40.001 much rates you play. So, for instance, I'm my house 0:09:40.241 --> 0:09:44.241 is valued at I would say we live in one 0:09:44.281 --> 0:09:48.081 of four units, so and that you know, the goods 0:09:48.281 --> 0:09:51.481 pretty big size, one hundred and eighty square meters probably 0:09:51.801 --> 0:09:54.801 you know, total from up and down. But my neighbor's 0:09:55.121 --> 0:09:59.961 valuation is fifteen, maybe even twenty percent in one of 0:10:00.001 --> 0:10:03.361 their cases, cheaper than mine, And so I'm paying more rates? 0:10:03.721 --> 0:10:06.801 Should I? Actually I've had different opinions on this, but 0:10:06.841 --> 0:10:09.161 one real estate person told me, he said, don't haggle 0:10:09.201 --> 0:10:11.761 it down. Don't don't complain, because one day you might 0:10:11.801 --> 0:10:15.201 want to sell your house and you'll you'll have put 0:10:15.201 --> 0:10:17.481 it out there that it's not worth as much as 0:10:17.521 --> 0:10:17.881 the neighbor. 0:10:18.041 --> 0:10:18.201 You know. 0:10:18.281 --> 0:10:20.841 Well, yeah, you can't have both ways, because if you've 0:10:20.841 --> 0:10:22.441 got to, if you're thinking of selling these four or 0:10:22.481 --> 0:10:25.081 five years, leave it high because I'm not No, Well, 0:10:25.081 --> 0:10:27.401 if you're staying for a long time, because your neighbor, 0:10:27.881 --> 0:10:30.761 if he's paying twenty percent less than you, are. He's 0:10:30.801 --> 0:10:33.841 still going to have the same transport infrastructure that you use. 0:10:34.241 --> 0:10:35.441 He's still going to be able to go to the 0:10:35.441 --> 0:10:39.321 same park. And maybe you produce a lot of rubbish, you. 0:10:39.281 --> 0:10:41.401 Know, because well I do have a couple of kids. Yeah. 0:10:41.561 --> 0:10:44.921 Well, you know, the council collect your rubbish, your waste management. 0:10:44.961 --> 0:10:46.721 You get the water, maybe drink a lot of water, 0:10:46.841 --> 0:10:51.841 you know, big baths or something. But and your environmental incentives. 0:10:51.881 --> 0:10:55.121 They want to have clean, green spaces. So your neighbor's 0:10:55.121 --> 0:10:58.321 paying effectively help you paying twenty percent, you know, proportionately 0:10:58.401 --> 0:11:02.161 less than you about getting the same services. But hey, 0:11:02.201 --> 0:11:07.961 look it's fascinating. And Wellington, what Wellington, we saw a 0:11:08.041 --> 0:11:11.201 twenty three percent reduction, you know because of all the 0:11:11.201 --> 0:11:14.121 civil servants of Frelington. But the races have come back, 0:11:14.201 --> 0:11:17.801 so we actually saw a big reduction there. Queenstown it's 0:11:17.841 --> 0:11:20.721 got its own economy, it's it's microclimate. 0:11:20.761 --> 0:11:20.881 You know. 0:11:20.961 --> 0:11:24.721 With international buyers coming in, they actually with twenty percent higher. 0:11:24.801 --> 0:11:29.001 So look, I tell you, if playing the role of 0:11:29.041 --> 0:11:32.481 a salesperson, you can go and get data. You can 0:11:32.521 --> 0:11:35.401 go and just hunt through all the rateable values as 0:11:35.401 --> 0:11:38.681 opposed to what they sold to. And I could I 0:11:38.881 --> 0:11:42.601 going you twenty five sales just online and say look, hey, damn, 0:11:42.641 --> 0:11:46.441 look at these These sold at thirty percent above, you know, 0:11:46.601 --> 0:11:50.441 so you that's the sort of zone. And then you 0:11:50.561 --> 0:11:52.721 go the other way and get get a whole lot 0:11:52.761 --> 0:11:55.321 of other data that's sold at twenty percent below. So 0:11:56.041 --> 0:11:59.681 you're just it's just not a reliable You should get 0:11:59.721 --> 0:12:04.641 a proper valuation, use comparative sales for expert advice rather 0:12:04.641 --> 0:12:06.601 than just what the rating value is. 0:12:06.721 --> 0:12:12.321 As does the recent council valuation. On average, it's dropped 0:12:12.361 --> 0:12:15.841 the value of property down nine percent. Does that I mean, 0:12:15.961 --> 0:12:18.241 is it simply a reflection of the fact that where 0:12:18.241 --> 0:12:21.561 the market is or does that in itself have an 0:12:21.561 --> 0:12:26.201 effect on how people perceive property values because the council 0:12:26.241 --> 0:12:28.921 are basically downgraded the whole stock by nine percent. 0:12:30.001 --> 0:12:31.441 Oh there's people always. 0:12:31.281 --> 0:12:32.761 Bad news for sellers. 0:12:33.401 --> 0:12:36.721 Yeah, yeah, it is for sellers, just another reason the 0:12:36.721 --> 0:12:39.121 buyers will want to beat them up, you know, and say, look, 0:12:39.361 --> 0:12:42.921 the raidable values come down, but hey it is. It 0:12:42.961 --> 0:12:44.641 is a fact. If you bought a home on the 0:12:44.641 --> 0:12:47.441 peak of the market back in twenty twenty two, yeah 0:12:47.561 --> 0:12:49.681 it was realist. I told you twenty twenty three. I 0:12:49.681 --> 0:12:52.001 didn't enjoy it. But as a business owner of real 0:12:52.081 --> 0:12:54.401 estate Company twenty twenty two, was it loved it. Real 0:12:54.521 --> 0:12:57.921 estate heaven, you know. But what would happen is people 0:12:58.001 --> 0:13:02.961 had fomo missing out and sellers were getting some tremendous prices. 0:13:03.521 --> 0:13:06.081 So the buyers that think, oh, thank god I secured 0:13:06.121 --> 0:13:08.281 a property. The sellers think, thank god I sold, I've 0:13:08.281 --> 0:13:10.641 got such a great price, and it was all come 0:13:10.721 --> 0:13:16.521 by our happy days. But the raidable values, the prices 0:13:16.561 --> 0:13:18.641 went up, so the radable values would have gone up. 0:13:18.881 --> 0:13:22.441 But since then property prices, particularly in Auckland, have come down. 0:13:22.561 --> 0:13:25.201 So the council has to say, well, based on that sale, 0:13:25.241 --> 0:13:29.081 that sale, and the algorithm algorithm just runs through and says, yeah, 0:13:29.321 --> 0:13:31.721 these properties are selling for less, so that the rateable 0:13:31.761 --> 0:13:34.521 values have to come down, but the scale charges of 0:13:34.601 --> 0:13:37.441 the rates they won't come down. I'll just move the 0:13:37.481 --> 0:13:38.081 scale up. 0:13:38.321 --> 0:13:41.361 I'm always amused because I know the address of one 0:13:41.361 --> 0:13:44.201 of New Zealand's richest New Zealanders and I often look 0:13:44.201 --> 0:13:46.001 at what he pays for his rates, and I think 0:13:46.041 --> 0:13:48.281 his rates bill is one hundred and nineteen thousand dollars, 0:13:48.481 --> 0:13:52.521 and I don't even think he gets an extra bin yeah, yeah, 0:13:52.921 --> 0:13:55.601 I mean because it's I mean it is. It's a 0:13:55.601 --> 0:13:57.881 form of wealth tax in a way, isn't it, Because. 0:13:57.521 --> 0:14:02.841 Well, I've got twenty twenty branches, right, so, and I've 0:14:02.881 --> 0:14:05.961 got it. Over time, I've treated real estate as an 0:14:06.041 --> 0:14:11.161 investment for retirement saving. So I've got some commercial properties 0:14:11.161 --> 0:14:15.121 and some apartments. So I am a VIP client in 0:14:15.161 --> 0:14:18.361 my opinion of the Auckland Council because I work out 0:14:18.361 --> 0:14:21.041 on the twenty Because as a tenant in a building, 0:14:21.121 --> 0:14:26.121 I have to pay the op X operating expenses, and 0:14:26.481 --> 0:14:28.841 if I'm renting out an apartment, I still have to 0:14:28.881 --> 0:14:33.881 pay the rate spell. So it's quite horrific how much 0:14:34.041 --> 0:14:37.001 of an expense that is. So the guy in the 0:14:37.081 --> 0:14:40.121 rich list, all he's doing is helping all of us 0:14:40.201 --> 0:14:43.841 because he's paying one hundred and six grand per anam 0:14:43.961 --> 0:14:46.921 for the same service as someone in a little modest 0:14:47.081 --> 0:14:48.281 one bedroom apartment. 0:14:48.801 --> 0:14:50.601 You think you could get an extra bin for that, 0:14:50.601 --> 0:14:53.761 wouldn't you. You'd think, well, could I have an extra 0:14:53.801 --> 0:14:55.441 bin please? And well that's going to be extra. 0:14:56.361 --> 0:14:58.161 Could I have a wee bit of the park that 0:14:58.201 --> 0:15:01.121 you look after for me exclusive for me or something 0:15:01.161 --> 0:15:05.521 like that? Or could some function or something. 0:15:05.881 --> 0:15:08.601 Yeah, yeah, I imagine this person doesn't get invited to 0:15:08.601 --> 0:15:10.761 a few functions, but hey, look we want your calls. 0:15:10.921 --> 0:15:15.441 Eight hundred eighty ten eighty. Do cvs matter for you 0:15:15.721 --> 0:15:18.441 as a buyer, a seller, or even just as a homeowner? 0:15:18.721 --> 0:15:22.961 Does it offend you? That's suddenly the property the council 0:15:23.001 --> 0:15:25.081 evaluation you'd be looking at, going look at what my 0:15:25.161 --> 0:15:25.721 house is worth? 0:15:25.841 --> 0:15:26.161 Is what? 0:15:26.481 --> 0:15:29.121 Hang on a minute, hasn't gone down ten percent? What's happened? 0:15:29.721 --> 0:15:33.721 Are cvs relevant? Do they matter? But also do they 0:15:33.721 --> 0:15:36.241 effect the way that you transact in the property market, 0:15:36.241 --> 0:15:38.081 whether you're a buyer a salad? What do you reckon 0:15:38.441 --> 0:15:41.001 your reckons? On? Eight hundred eighty t and eight. My 0:15:41.121 --> 0:15:44.041 guest is managing director at Hardcourts Cooper and Kurtz Martin Cooper. 0:15:44.841 --> 0:15:47.201 First time on the show twenty two past four News 0:15:47.241 --> 0:15:50.041 Talk zed B News Talk z B with the Timberbris 0:15:50.121 --> 0:15:52.281 is the one roof radio show. My guest is Martin Cooper. 0:15:52.281 --> 0:15:55.081 We're talking about cvs. They came out last week. Aukme to. 0:15:55.201 --> 0:15:57.641 Homeowner has been checking their's a few surprised to see 0:15:57.681 --> 0:16:00.561 their properties now valued nine percent less on average. Does 0:16:00.561 --> 0:16:03.401 it matter? Does it do you care. We're taking your calls. 0:16:03.481 --> 0:16:06.681 Eight hundred eighty ten and eighty Graham, Hello. 0:16:08.001 --> 0:16:09.161 Hi, how are you doing good? 0:16:09.201 --> 0:16:09.481 Thanks? 0:16:09.761 --> 0:16:14.721 I'm an Auckland homeowner. H My rates assessment have shifted 0:16:14.721 --> 0:16:17.121 from one million dollars down to six hundred and eighty 0:16:17.161 --> 0:16:18.201 thousand dollars. 0:16:18.841 --> 0:16:22.521 What one million to six hundred and eighty thousand dollars? 0:16:23.361 --> 0:16:23.561 Yep? 0:16:24.641 --> 0:16:27.521 Did that offend you? Upset you? What was your reaction 0:16:27.601 --> 0:16:27.881 to that? 0:16:27.961 --> 0:16:30.881 Just just a tiny bit? I mean, I don't mind 0:16:30.921 --> 0:16:34.401 the idea that the rates if it's applicable, but I 0:16:34.441 --> 0:16:36.841 honestly don't. I don't think the system is robust enough 0:16:36.881 --> 0:16:39.721 at the stage, and we've certainly put our objection in. 0:16:39.801 --> 0:16:45.321 But it just seems overtly annoying that to shift significantly 0:16:45.361 --> 0:16:47.641 from that number's about thirty percent reduction? 0:16:48.321 --> 0:16:53.441 That actually, that is a colossal reduction. How actually, let's 0:16:53.441 --> 0:16:55.921 Bran Martin, How would that happen that much? 0:16:55.961 --> 0:17:00.321 That seems Oh no, Graham, you should be appealing that. 0:17:00.721 --> 0:17:05.481 I don't see thirty percent reduction on any Auckland the state. 0:17:05.641 --> 0:17:08.081 You're talking about a residential property, so that would have 0:17:08.121 --> 0:17:08.921 been quite a shock. 0:17:10.641 --> 0:17:15.201 It's part of a unit block is twenty two apartments 0:17:15.241 --> 0:17:18.761 in the facility. There are some one bedroom units. Ours 0:17:18.761 --> 0:17:21.241 as a three bedroom much larger, But I have a 0:17:21.281 --> 0:17:24.841 funny feeling they've mixed up for one bedrooms which are 0:17:24.841 --> 0:17:27.361 a lot small about adiold square metis versus ours, which 0:17:27.441 --> 0:17:30.521 is a significantly larger unit. But it's one I'm saying 0:17:30.521 --> 0:17:32.961 about the robusters of assessments. 0:17:33.681 --> 0:17:36.961 Have you checked have you searched your neighbors the other 0:17:37.401 --> 0:17:40.321 two bedrooms to see what they're worth? And then does 0:17:40.521 --> 0:17:41.201 what does that say? 0:17:41.801 --> 0:17:45.521 I haven't. They haven't come up as done yet. No, 0:17:45.641 --> 0:17:46.721 I have not done that yet. 0:17:46.721 --> 0:17:46.801 No. 0:17:47.361 --> 0:17:50.761 Okay, yeah, I think Graham, you're onto a mistake there. 0:17:51.641 --> 0:17:54.241 What if your rates are a thousand bucks cheaper? I mean, 0:17:54.281 --> 0:17:56.601 what if how much would you pay extra and rates 0:17:56.641 --> 0:17:57.881 just to get that value back up? 0:18:02.041 --> 0:18:04.681 I honestly, we don't know that yet. Of course, until 0:18:04.761 --> 0:18:07.081 the next a lot of weights come through the system. 0:18:07.121 --> 0:18:09.801 Because I just say that, you know, the rates of 0:18:09.881 --> 0:18:13.321 such won't change. But the problem is is my my 0:18:13.921 --> 0:18:18.001 body corporate expenses will not reduce significantly, So I've still 0:18:18.001 --> 0:18:20.521 got all of those to manage and take care of. 0:18:21.801 --> 0:18:26.201 And but the rateable value really puts a line in 0:18:26.241 --> 0:18:28.921 the sand about if I was to sell. 0:18:29.201 --> 0:18:33.921 Yeah, no, Graham, it wouldn't be the case that you know, 0:18:33.921 --> 0:18:38.001 if you've had a million dollar apartment dropping down to 0:18:38.241 --> 0:18:41.601 six hundred. I mean it's a it's a unit title 0:18:41.721 --> 0:18:44.921 with a body corporate. It's not a leasehold, a leasehold 0:18:45.001 --> 0:18:45.881 situation something. 0:18:46.441 --> 0:18:48.161 No, no, no, no, it's a unit title. 0:18:48.281 --> 0:18:53.081 Yep, you should be fine. Hey, what you can do? Agents? 0:18:53.241 --> 0:18:57.001 Real estate agents are very hungry for new clients and contacts. 0:18:57.321 --> 0:19:01.681 You could ring any agency and just ask, just say, hey, 0:19:01.681 --> 0:19:03.241 I want to get it up to date appraisal of 0:19:03.241 --> 0:19:06.041 the value of my property. It might find it reassuring 0:19:06.121 --> 0:19:10.161 that they would give you comparative sales analysis and you 0:19:10.201 --> 0:19:14.721 could reassure yourself that your equity hasn't gone down by 0:19:14.801 --> 0:19:15.601 thirty percent. 0:19:16.081 --> 0:19:17.561 When did you buy it, a Graham? 0:19:18.841 --> 0:19:22.761 I bought it back in twenty eleven, three days before 0:19:22.761 --> 0:19:25.521 we won the World Cup, and. 0:19:25.441 --> 0:19:28.681 Then prices boomed. We used to I used to when 0:19:28.721 --> 0:19:30.761 I first started selling real estate, Graham. I used to 0:19:30.801 --> 0:19:33.401 get anxious. I was sew into rugby myself. I thought 0:19:33.441 --> 0:19:36.281 if we lost a Test match it would be detrimental 0:19:36.321 --> 0:19:36.961 to the market. 0:19:37.081 --> 0:19:40.401 But yeah, did you do you remind me asking what 0:19:40.441 --> 0:19:42.041 you do you remind me asking what you paid in 0:19:42.081 --> 0:19:43.721 it back, because that's fourteen years ago. 0:19:43.801 --> 0:19:48.241 Now it's four hundred and fifty two a thousand. 0:19:49.121 --> 0:19:52.121 Okay, well, yere, you would be upset with it dropping 0:19:52.121 --> 0:19:56.441 from a million to six. That's quite expensive, doesn't. 0:19:56.201 --> 0:19:59.521 I mean, well, it was quite expensive. There was certainly 0:19:59.841 --> 0:20:05.641 about fifty percent above the CV of that time. But 0:20:05.641 --> 0:20:07.881 but I guess my point. I guess where I'm sitting. 0:20:08.041 --> 0:20:09.721 They're not going to get too anxious. I just want 0:20:09.761 --> 0:20:14.001 to see how the redress program goes through their their 0:20:14.081 --> 0:20:17.721 rates process. That if it comes back and they say, oh, yes, 0:20:17.761 --> 0:20:21.321 it's a genuine mistake, we'll write it. But beyond that, 0:20:21.681 --> 0:20:24.241 then I will have a bigger issue to deal with. Yeah. 0:20:24.321 --> 0:20:27.681 Yeah, Well, if it's beyond that, just call a real 0:20:27.761 --> 0:20:29.761 estate agent that you like and trust. They can do 0:20:29.801 --> 0:20:33.281 an analysis of other sales for you, which might help 0:20:33.681 --> 0:20:35.561 if you want to get it get it back up. 0:20:37.481 --> 0:20:41.401 Oly. Look, thanks, gentlemen, Yeah, cheers. 0:20:41.601 --> 0:20:43.881 I imagine the thing would be for I mean, the 0:20:44.721 --> 0:20:47.841 other thing is if they're still updating the data for 0:20:48.241 --> 0:20:51.401 the other units in his block, wait for that to 0:20:51.401 --> 0:20:54.081 come out, and there may be a really simple answer, 0:20:54.081 --> 0:20:56.721 because if it turns out that say, you know, there 0:20:56.721 --> 0:20:59.401 are the other two bedroom apartments are about eight eighty 0:20:59.481 --> 0:21:01.561 or so, let's just be you know, eight eighty or 0:21:01.641 --> 0:21:05.321 nine hundred. Then he and he's obviously been there. That's 0:21:05.401 --> 0:21:08.241 clearly a mistake. Yes, although that is a mass. 0:21:08.401 --> 0:21:10.481 That's why look at the start of this, don't worry. 0:21:10.601 --> 0:21:12.361