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Speaker 1: Madam.

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Speaker 2: Hi, I'm Liam Dan, New Zealand Herald's Business editor at

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Speaker 2: Large and welcome to this episode of Money Talks. This

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Speaker 2: is a podcast about money, but we're not going to

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Speaker 2: tell you how to get rich, and we're not going

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Speaker 2: to try and pick the next interest rate move. In

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Speaker 2: this series, I'll be talking to interesting New Zealanders about

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Speaker 2: how money has shaped their lives and what they've learned

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Speaker 2: over the years. For today's podcast, I'm joined by Chief

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Speaker 2: executive of Bailey's Auckland, Lloyd Bud. You're a Lloyd. Welcome

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Speaker 2: to Money Talks.

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Speaker 3: Thanks Leam, great to be here.

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Speaker 2: Yeah, look, just before we get into it, can't really

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Speaker 2: talk to a real estate chief without just saying, how's

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Speaker 2: this really tough winter going? It is pretty grim out

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Speaker 2: there in the property market right.

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Speaker 1: Luckily, and we're seeing really positive trends i'ming through at

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Speaker 1: the moment. I was just on a call with the

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Speaker 1: team this morning. Our July numbers are about nineteen percent

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Speaker 1: on last year. The number of inquiries we're coming through

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Speaker 1: have increased as well month on month, so we're seeing

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Speaker 1: this momentum coming into spring really positive. And while we

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Speaker 1: know there's been some conversation around, prices hopping around. I

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Speaker 1: think we're starting to see confidence returning.

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Speaker 2: Yeah, so that that interest rate story must start to

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Speaker 2: take hold, right, and people can see hopefully that things

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Speaker 2: extending to move.

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Speaker 1: Yeah, very much, so very much. And the rhetoric as well. Right,

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Speaker 1: I mean we are going to see an ocr coming

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Speaker 1: off in the next six months. You'll know that answer

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Speaker 1: better than me. But ultimately I think that's that word confidence,

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Speaker 1: That word momentum is something we're seeing a lot coming

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Speaker 1: back into both buyers and sellers at the moment.

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Speaker 2: Sure, well, look, we'll talk a bit more about property

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Speaker 2: later on, but let's go right back. I want to

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Speaker 2: ask you, yeah, if you can tell me a little

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Speaker 2: bit about your first memories of having money and having

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Speaker 2: money around you growing up.

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Speaker 1: It's a fascinating story and prompted for today to go

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Speaker 1: back and actually think about some of these memories. Was

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Speaker 1: really interesting family as well. But it was actually a

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Speaker 1: Christmas and my birthdays around Christmas, and I know there's

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Speaker 1: lots of presents flying around and you're in that sort

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Speaker 1: of family environment, people and wrapping things, and my name

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Speaker 1: was on.

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Speaker 3: This and it keary looked like a pop plant.

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Speaker 1: Or some sort of an indoor, a mini tree basically,

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Speaker 1: and it was all wrapped up quite nicely, and I

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Speaker 1: went to it, and as I opened it, I found

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Speaker 1: that that money was actually staple to the leaves, and

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Speaker 1: in some cases coins were celutaped onto them. And I

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Speaker 1: thought this was really fascinating because I always wondered where money.

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Speaker 3: Had come from.

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Speaker 2: Yah, yeah, on trees.

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Speaker 3: That was the Joe intended.

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Speaker 1: And I think for my parents to actually have given

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Speaker 1: me that, there must have been something in my behavior

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Speaker 1: that had implied it was quite important to me, and

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Speaker 1: they wanted to maybe teach me that maybe it didn't

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Speaker 1: grow on trees and I had to learn other ways

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Speaker 1: to make a dollar.

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Speaker 2: Yeah, So I mean they could have just given you

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Speaker 2: some money. It's a way to make you think and

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Speaker 2: start a conversation with your parents. You know, quite good

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Speaker 2: on that front around around money and financial matters. Did

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Speaker 2: you grow up in a household where it was that

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Speaker 2: financial literacy?

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Speaker 3: Very much so?

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Speaker 1: And also I think I learned from a young age

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Speaker 1: the value of money. You know, I didn't get pocket

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Speaker 1: money as such. There was an expectation for us to

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Speaker 1: do certain things and be a contribute towards the household.

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Speaker 1: But understanding what that went towards in terms of paying

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Speaker 1: a mortgage and putting groceries on the table. But I

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Speaker 1: do remember one story with Dad. I borrowed the family car,

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Speaker 1: and I don't know where i'd been, but I felt

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Speaker 1: that I was in a fifty K zone and I wasn't. Sorry,

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Speaker 1: I found I was in an eighty K zone and

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Speaker 1: I wasn't And I got caught doing eighty kilometers in

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Speaker 1: a fifty.

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Speaker 2: Right, and I run a big fine.

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Speaker 1: Yeah, so we're probably going back to the late nineties now,

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Speaker 1: and I reckon that fine would have been say four

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Speaker 1: hundred dollars back then. And so while I wasn't earning

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Speaker 1: pocket money, I was given a Dad paid the fine

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Speaker 1: for me, and I was given jobs and allocated and

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Speaker 1: even sporting performances and academic performances that were given monetary

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Speaker 1: value to them targets the hat. So as I achieved

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Speaker 1: one of those, we had this little notebook and I

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Speaker 1: bet a cross off from four hundred and sixty dollars

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Speaker 1: at the top right down to getting to zero dollars

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Speaker 1: at the bottom. And it took a long time, Yeah,

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Speaker 1: but it really did help understand that financial literacy from

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Speaker 1: you know, right from school.

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Speaker 2: Yeah, so where were you growing up? Was the where

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Speaker 2: was the crash?

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Speaker 3: It wasn't a crash.

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Speaker 1: Yeah, the speeding, the speeding, Yes, the incorrect reading is

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Speaker 1: a sign. Look, I grew up in FUNDA proud norsem boy. Yeah, okay,

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Speaker 1: the tiny fa always been around rugby and growing up

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Speaker 1: in Northam was a big part of my childhood. But

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Speaker 1: we're this particular ev happened. We actually moved down to

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Speaker 1: Palmers North, which was a wonderful move from a schooling

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Speaker 1: and an opportunity point of view, to come across as

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Speaker 1: perhaps a slightly biggest school in Palmi Boys, a bit

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Speaker 1: more discipline. We had a wrecked by the name of

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Speaker 1: David Simms, so there was a lot of change in

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Speaker 1: that time.

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Speaker 2: Sure academically, were you you know, were you interested in

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Speaker 2: money at school? Did you think?

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Speaker 3: Or?

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Speaker 2: I guess property is a weird thing to be interested

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Speaker 2: in as a kid, but the idea of buying and

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Speaker 2: selling and that sort of thing, Yeah.

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Speaker 1: Yeah, interesting money, property, the two obviously hand in hand.

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Speaker 1: The incredible thing for me was for property. I don't

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Speaker 1: think I really had a genuine interest in that while

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Speaker 1: I was at school or while I was growing up. Yeah,

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Speaker 1: I was interested in money. Yeah, And I after I

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Speaker 1: would finish my rugby training or my sports after school,

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Speaker 1: I would go and load up literally load palettes full

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Speaker 1: of bricks or tiles or timber up at the local

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Speaker 1: policemakers in Palmersan North and in seven dollars an hour

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Speaker 1: and doing that. So I think clearly that understanding of

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Speaker 1: having to work for money and earn money to spend

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Speaker 1: was something that was really understood in that kind of

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Speaker 1: later teen years.

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Speaker 2: Yeah, I mean, was there was there anything you were

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Speaker 2: you know, at that stage where you're saving for staff

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Speaker 2: or you're spending it each week.

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Speaker 3: I was always a saver.

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Speaker 1: I was always I don't know what I was saving for,

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Speaker 1: But again I guess I went back to that intrinsic Well,

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Speaker 1: I guess what was taught into me from my family,

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Speaker 1: just just protecting that as a very valuable asset and saving.

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Speaker 3: For what that might what that might be.

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Speaker 2: Yeah, clearly you got interested in property and real estate

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Speaker 2: at a young age, right, Like I understand that you

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Speaker 2: you sort of met Bailey himself.

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Speaker 1: Yeah, so I was applying for a few scholarships, so

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Speaker 1: talk about money, right, so we valued Yah, are you

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Speaker 1: scholarships leaving high school and going into university. Money is

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Speaker 1: incredibly important student loans and books and fees and all

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Speaker 1: the things. And I met John Bailey, who was our chairman.

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Speaker 1: He's still involved in the company to today, some fifty

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Speaker 1: years later. And I met him at a function and

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Speaker 1: I was fortunate enough to be speaking about the scholarship

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Speaker 1: and what I would potentially do with my career. And

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Speaker 1: I walked off the stage and John Bailey came and

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Speaker 1: shoosed himself to me and said, you work.

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Speaker 3: For me now. I said, okay, that's great, thank you,

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Speaker 3: Thank you John.

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Speaker 1: Looking at his business card and I said, what do

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Speaker 1: you do and he says, well, I'm the chairman of Bailey's.

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Speaker 3: And I said, oh, that's fantastic. What did they do? Yeah?

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Speaker 1: Yeah, Well here I am, at seventeen years old, no

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Speaker 1: clue of real estate to even know, yeah, you know,

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Speaker 1: a brand such as the Bailey.

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Speaker 2: Well, I mean there isn't you know, There isn't that

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Speaker 2: much of a reason unless you you know, I don't

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Speaker 2: know what your parents were doing, but unless you grow

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Speaker 2: up on it to know how that whole property sector works, right, correct?

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Speaker 1: And I think it's something we talked about financial literacy,

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Speaker 1: and I think we do learn about demand and supply

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Speaker 1: and schools, we do learn a lot about the basics

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Speaker 1: of that. But you know, properties people's biggest purchase that

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Speaker 1: they may be maybe the biggest decision they'll make in

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Speaker 1: their lives, and generally we're not preparing people well enough

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Speaker 1: Foard as they go in to make those decisions.

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Speaker 3: Yeah.

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Speaker 1: I mean you're talking to an expert here, but you know,

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Speaker 1: the number of New Zealanders that own their homes is

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Speaker 1: declining every year, right, Yeah, I think your last stats

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Speaker 1: had them at fifty six percent of New Zealander's own

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Speaker 1: a home. I'd love to have more literacy and more

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Speaker 1: planning to help people get that pathway towards home ownership. Sure.

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Speaker 2: Yeah, So when you're standing on the stage and doing speech,

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Speaker 2: what you know before hit met John Bailey, what were

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Speaker 2: you thinking of doing and what we're talking about at

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Speaker 2: that point?

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Speaker 3: Honestly, I just don't know. I mean, you're seventeen years older.

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Speaker 1: I mean, there was definitely an attraction towards a sales

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Speaker 1: or marketing or career where you could use those skills,

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Speaker 1: and obviously the real estate opportunity is one that meets

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Speaker 1: sales and marketing with puts all that to the tests

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Speaker 1: in front of a customer every day.

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Speaker 2: Yeah, sure, I mean did you take them up on it?

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Speaker 2: Did you start working for them that early?

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Speaker 3: I literally did land?

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Speaker 1: Yea, literally, this would have been November or December in

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Speaker 1: the year two thousand and I started working January two

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Speaker 1: thousand and one.

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Speaker 3: Wow.

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Speaker 2: And did you go straight in as an actual You've

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Speaker 2: got a train of bit for a real estate agent,

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Speaker 2: But how did you go in? Did you go in

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Speaker 2: and start selling?

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Speaker 3: Yeah?

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Speaker 1: So I was still studying, So I was doing my

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Speaker 1: degree while I was working for family, So you can't

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Speaker 1: actually conduct real estate sales and those sort of things.

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Speaker 1: But within our company, we had a research department, and

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Speaker 1: my very first job, I'm looking around the Auckland CBD,

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Speaker 1: just pointing outside at the moment, one point two million

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Speaker 1: square meters of real estate in the Oakland CB now,

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Speaker 1: and my first job was to walk every single floor

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Speaker 1: in every single building with a clipboard in hand and

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Speaker 1: write down who was in there, whether it was vacant, well,

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Speaker 1: what they did know, whether it was media for ends

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Speaker 1: in me or accounting for video upstairs, whatever it was,

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Speaker 1: and then put all that information into an Excel sheet

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Speaker 1: and analyze it for our agents to see the trends, so.

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Speaker 2: They could see what they've sold, what they potentially could

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Speaker 2: I guess.

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Speaker 1: Dirrecton, we would look at things like absorption rates, what

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Speaker 1: sector we're taking the most amount of space and that

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Speaker 1: would lead us towards having conversations with that sector as

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Speaker 1: a target for perhaps new officers.

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Speaker 2: Yeah, I mean it sounds like things took off there.

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Speaker 2: But did you did you finish the degree? Did you

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Speaker 2: go right through?

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Speaker 1: So?

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Speaker 2: What was what was your studying?

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Speaker 3: Yeah? Finished the degree.

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Speaker 1: I was actually at stayed on at MASSI in Palmerston

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Speaker 1: North after I finished Army Boys, and it was a

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Speaker 1: Bachelor of Business Studies right and through the Massy curriculum

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Speaker 1: you do a property major, but I also did a

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Speaker 1: business a management major as well, right Yeah, yeah, so

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Speaker 1: quite different to say Auckland University that's purely a property

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Speaker 1: focused course that doctor debraleeve he runs here.

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Speaker 2: Yeah, and it sounds like you're quite into sports. Where

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Speaker 2: did you keep playing rugby and keep the sports going

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Speaker 2: through that?

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Speaker 3: No, that's a short answer.

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Speaker 1: Look, I think you know we're on Money Talks podcast

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Speaker 1: and that was the answer for me. I was never

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Speaker 1: as talented as others in my class. I was never

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Speaker 1: as talented as others in my family. My brother went

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Speaker 1: on to captain Italy and the Rugby World Cup in

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Speaker 1: Japan and twenty nineteen old man captain North Auckland back

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Speaker 1: in the eighties.

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Speaker 3: So no, it was never the.

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Speaker 1: Most talented in my family by any stretch. But I

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Speaker 1: think the money talks the appeal of getting into a career,

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Speaker 1: and I guess doing the applying the same discipline or

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Speaker 1: training or constant improvement in my career was something that

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Speaker 1: I chose to focus on instead.

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Speaker 2: Yeah, and I mean I guess you know, everybody can

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Speaker 2: get the head around the idea of getting rich or

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Speaker 2: getting wealthy, But it was money the driver, or was

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Speaker 2: it you know, what was driving you to sort of

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Speaker 2: go down that at that business path?

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Speaker 1: Do you think it never has been money the driver?

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Speaker 1: And I still don't think it is now. I think

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Speaker 1: it was about, you know, seeing that you could no

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Speaker 1: different to sports or no different to so many other things,

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Speaker 1: that you could set a goal and be able to

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Speaker 1: control or try to corral a whole bunch of independent

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Speaker 1: resources to achieve a common outcome. And I think there's

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Speaker 1: that satisfaction in being able to.

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Speaker 2: Do that put it all together.

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Speaker 1: Yeah, And the outcome might happen to be that we're

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Speaker 1: in a commission. The outcome may be that someone gets

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Speaker 1: a fantastic result for selling their property. But the pathway

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Speaker 1: or the customer journey to get there is what really

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Speaker 1: excited me. Yeah, that's fascinating to think, isn't it to

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Speaker 1: sell one property? How many touch points, how many resources?

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Speaker 1: How many things have to go right?

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Speaker 2: Yeah for that and the right order and yeah yeah,

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Speaker 2: and and and I guess things that can go wrong,

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Speaker 2: but yeah, yeah, yeah, and so did you? Did you

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Speaker 2: start selling as soon as you could? And I mean

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Speaker 2: you become a qualified real estate agents soon as you

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Speaker 2: got out.

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Speaker 1: Yeah, so back in those days, once you had your degree, yep,

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Speaker 1: that gave you the ability to sell real estate. We

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Speaker 1: was pre the days of the of the r A.

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Speaker 1: So had the degree and went into project sales and

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Speaker 1: marketing with Bailey. So transferred that research peace into into

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Speaker 1: sales and marketing, and we were working on some phenomenal

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Speaker 1: properties back in those days.

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Speaker 3: Yeah.

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Speaker 1: I think you got to think two thousand three, two

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Speaker 1: thousand and four, it's a huge rush on coastal property

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Speaker 1: dealing with some of the New Zealand's wealthiest people on

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Speaker 1: sites and Breamtail and mung Afi.

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Speaker 2: Or yeah, and international money sort of came in around

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Speaker 2: then too, right because the post Lord of the Rings

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Speaker 2: New Zealand sort of started humming.

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Speaker 1: Team New Zealand around that time. Absolutely spot on and

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Speaker 1: that was fun. It was again for a young guy

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Speaker 1: into that. It was probably a little bit surreal to

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Speaker 1: see some of that we're talking about money. To see

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Speaker 1: some of that wealth was mind blowing and I think

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Speaker 1: that that might have been part of the inspiration to

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Speaker 1: try and push a bit harder and work a bit

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Speaker 1: harder to see it one day.

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Speaker 3: Yeah, sure, sort of be up at those levels.

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Speaker 2: Did you focus on getting your own property earlier? You're

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Speaker 2: not one of those. You know, we have the stories

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Speaker 2: in the Herald every now and then, you know the

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Speaker 2: kid who's got their first house together at nineteen or

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Speaker 2: something like that.

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Speaker 3: It wasn't quite nineteen, but it was definitely a goal

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Speaker 3: of mine.

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Speaker 1: In fact, my first home was up in Fungday, so

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Speaker 1: as I said, born and bred up north, and it

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Speaker 1: was an opportunity through work that had taken me to

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Speaker 1: have a lot of interest up in Fungday and I

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Speaker 1: bought my first home for around about I think it

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Speaker 1: was three hundred and twenty seven thousand dollars. Well, yeah,

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Speaker 1: in two thousand and five, I want to say, and

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Speaker 1: you know, it seems mind blowing to think of those

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Speaker 1: numbers now with where medium house prices are and what's

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Speaker 1: going on.

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Speaker 2: Yeah, I mean, I'm old enough to remember when four

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Speaker 2: hundred thousand suddenly it seemed like a big amount for

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Speaker 2: an Auckland house. That's like I remember living in a

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Speaker 2: house on Williams and Avene Pontsanbe gray Lin and hearing

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Speaker 2: that the place I was living in was worth four

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Speaker 2: hundred thousand and thinking, gee, it's probably worth ten times.

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Speaker 2: It's probably with four million.

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Speaker 1: Now keep in mind also, Liam, that you know, two

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Speaker 1: thousand and five, I was probably paying close to nine percent.

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Speaker 2: Yeah, that was rough, right until the GFC kind of

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Speaker 2: pulled the carpet out, and then it was rough for

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Speaker 2: other reasons.

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Speaker 1: That's right, And I'm hearing rates now, you know, stabilizing.

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Speaker 1: I think some of the main banks got rates around

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Speaker 1: six percent for long term money at the moment, and

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Speaker 1: I think we probably have to adjust our expectations on

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Speaker 1: what sustainable interest rates are in terms of supporting that market.

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Speaker 2: Yeah, yeah, absolutely, So how did you go through the

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Speaker 2: GFC then, because you would have been, you know, all

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Speaker 2: go and then there was a big crash in two

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Speaker 2: thousand and seven eight nine.

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Speaker 1: So through more good luck than good management, I happen

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Speaker 1: to sell a business interest I had in a Bailey's

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Speaker 1: franchise in two thousand and seven, right, and got a

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Speaker 1: one way ticket to d BAI.

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Speaker 3: Yeah.

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Speaker 2: So, just to jump back a little bit, you already

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Speaker 2: had a stake in a franchise pretty early on, that's right. Yeah,

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Speaker 2: I was when I was talking about that interest back

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Speaker 2: and fun at eight yep. I was fortunate enough to

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Speaker 2: have a forty five percent share yep of Bailey's in

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Speaker 2: the North. I was twenty three at the time, which

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Speaker 2: there must be It's got to be some sort of record.

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Speaker 3: Yeah, I'm not sure that.

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Speaker 1: So no, through as I say, more good luck than

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Speaker 1: good management, my business partner and I saw a different future.

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Speaker 1: And I remember speaking with John Bailey jb our chairman,

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Speaker 1: and I love the company. I've obviously worked here literally

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Speaker 1: since the day I left school. I wouldn't mind hitting

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Speaker 1: overseas for twelve months just to MYI most people do

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Speaker 1: it before that they start their career, and yeah, so

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Speaker 1: fortunate for me. I was actually in Dubai when the

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Speaker 1: GFC had.

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Speaker 2: Yeah, and I guess that was a little bit buffer

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Speaker 2: that was that was sort of booming right through to

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Speaker 2: something extent.

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Speaker 1: Absolutely spot on, and Dubai changed a lot on the

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Speaker 1: back of the GFC because it was different money that

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Speaker 1: came in afterwards. But as you say, because of the

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Speaker 1: diversity of people there where the wealth was coming from

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Speaker 1: all over the literally all over the world, it sustained

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Speaker 1: a pretty good momentum through that eighth nine period and

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Speaker 1: ended up being a great place to grow your career.

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Speaker 2: Yeah, so you were selling property there as well.

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Speaker 1: Actually went on the development side for a look under

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Speaker 1: the hood to see what the development world was like.

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Speaker 1: I was an incredible sort of random story on maybe

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Speaker 1: not so much money talks, but I was in.

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Speaker 3: One of my projects was in Syria. Wow. And back

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Speaker 3: in those days, we had the BlackBerry.

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Speaker 1: And they had an app on their equity sos And

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Speaker 1: one day this thing starts beeping and it turns out

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Speaker 1: that our sales center was quite liked by the rebels

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Speaker 1: who were looking to attack Damascus. Wow. And they turned

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Speaker 1: up one day and took over our sales center. So

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Speaker 1: part of my real estate career, of part of my

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Speaker 1: job was to help relocate about a dozen or so

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Speaker 1: families from Syria into other parts of the Middle East.

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Speaker 3: Wow, yeah, highakes stuff the spring and twenty eleven.

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Speaker 2: Yeah, so you were there. You're obviously there for a while.

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Speaker 1: In the end ended up Yeah, my twelve month oughe

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Speaker 1: lasted about five and a half years. I always stayed

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Speaker 1: in touch with the family, the Bailey family back here,

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Speaker 1: but I think that that career opportunity and the scale

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Speaker 1: of what the Middle East offered was something that I

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Speaker 1: was really appealing to me. And it was one of

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Speaker 1: those things that I never ever planned for. You never

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Speaker 1: ever said you'd be here for that long or or

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Speaker 1: do that, But as the opportunities presented themselves, it was

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Speaker 1: the right thing for us to to stay and make

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Speaker 1: the most of them.

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Speaker 3: Yeah.

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Speaker 2: Yeah, and you so you came back to around twenty

400
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Speaker 2: twelve or.

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Speaker 3: So, were with about six years. So twenty fifteen, twenty fifteen,

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Speaker 3: we came back.

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Speaker 1: My wife and I we got married in New Zealand.

404
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Speaker 1: But while we were away, my daughter was actually born

405
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Speaker 1: in the American hospital in Dubai in twenty thirteen.

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Speaker 3: So yeah, we had huge life changing experience in Middle Least.

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Speaker 2: So it was a little bit that lifestyle that you

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Speaker 2: missed coming back to New Zealand looking for the Kiwi life.

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Speaker 3: Absolutely spot on.

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Speaker 1: You know, we talk about it a lot around you know,

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Speaker 1: it's getting in the boat, it's going to spend time

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Speaker 1: with family, it's the I think there's something really special

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Speaker 1: about that New Zealand lifestyle that ultimately we all has

414
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Speaker 1: been as much time as we can on a beachure

415
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Speaker 1: on a boat or and that was a huge appeal

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Speaker 1: for us.

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Speaker 3: Yeah.

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Speaker 2: Yeah, Okay, before I ask you a few of our

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Speaker 2: quick fire questions, I'm keen to dig a bit more

420
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Speaker 2: into the whole the property thing, because you know, it

421
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Speaker 2: is a fascinating topic, and it is in a way

422
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Speaker 2: it is a kind of a national obsession. Maybe after

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Speaker 2: rugby it might be the biggest national obsession. You talked

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Speaker 2: about trying to get those home ownership numbers up, you

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Speaker 2: know other things when you look at it, I guess

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Speaker 2: I'm thinking about tips or advice for the way people

427
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Speaker 2: should approach getting on the property ladder and also some

428
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Speaker 2: of the pitfalls to watch out for.

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Speaker 1: Yeah, it's something we obviously get asked a lot, and

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Speaker 1: I go back to that confidence and that momentum piece.

431
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Speaker 1: I think we can all get lost in the noise

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Speaker 1: over what a Rhyan's index has done over one month,

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Speaker 1: for particularly what our price is doing hovering around plus

434
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Speaker 1: two minus two percent here or there. I think the

435
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Speaker 1: biggest tip for buyers is what can you afford? Have

436
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Speaker 1: a really sensible look at a long term rate, five

437
00:21:37,560 --> 00:21:40,880
Speaker 1: year money. What can you afford to which will set

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Speaker 1: yourself up for not only your own future, but literally

439
00:21:44,560 --> 00:21:49,320
Speaker 1: generations to come. And then when you're comfortable at that level,

440
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Speaker 1: make the decision. Be confident because you're not there to

441
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Speaker 1: buy and sell in a twelve month real estate cycle

442
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Speaker 1: that might drop from where we are today by two percent.

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Speaker 1: I'll ultimately you would have gained more by the money

444
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Speaker 1: you've saved from not paying rent or the pride you

445
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Speaker 1: take in your property, and therefore you look after things

446
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Speaker 1: a bit better and make smarter decisions around your career

447
00:22:12,400 --> 00:22:16,040
Speaker 1: and your family and things like that. So the biggest

448
00:22:16,119 --> 00:22:18,200
Speaker 1: tip is going, let's let's get out of this kind

449
00:22:18,240 --> 00:22:22,000
Speaker 1: of short termism. We're not a liquid stock market, we're

450
00:22:22,040 --> 00:22:26,400
Speaker 1: not a tradable stock We're buying for generations. And if

451
00:22:26,440 --> 00:22:29,000
Speaker 1: you think that way, and particularly where we are right now,

452
00:22:29,800 --> 00:22:31,119
Speaker 1: no one can ever tell you if we're at the

453
00:22:31,160 --> 00:22:33,959
Speaker 1: bottom or near or whatever. Anyone who says they can

454
00:22:34,119 --> 00:22:36,960
Speaker 1: is making that up. But what we can say is

455
00:22:37,000 --> 00:22:40,600
Speaker 1: there is going to be great opportunity as the interest rate,

456
00:22:40,720 --> 00:22:43,480
Speaker 1: the main driver of value comes back in the next

457
00:22:43,520 --> 00:22:46,040
Speaker 1: six to nine months, that it's only going to see

458
00:22:46,080 --> 00:22:48,720
Speaker 1: that investment get more and more valuable as you set up. Yeah,

459
00:22:49,240 --> 00:22:53,120
Speaker 1: so be confident, but maybe make some tough decisions.

460
00:22:53,200 --> 00:22:53,320
Speaker 3: You know.

461
00:22:53,400 --> 00:22:55,240
Speaker 1: I'm not going to sit here and preach and have

462
00:22:55,280 --> 00:22:57,920
Speaker 1: a cardo on toast, but I think sometimes we just

463
00:22:58,000 --> 00:23:01,159
Speaker 1: have to say, what are the sacrifice is that we

464
00:23:01,280 --> 00:23:04,560
Speaker 1: can make now that in five or ten years time

465
00:23:05,040 --> 00:23:08,159
Speaker 1: we can bear the rewards of we can be enjoying

466
00:23:08,240 --> 00:23:11,080
Speaker 1: to then go and by the sparple or extend the

467
00:23:11,160 --> 00:23:14,080
Speaker 1: room for the new edition and the family or whatever

468
00:23:14,160 --> 00:23:15,040
Speaker 1: those things may be.

469
00:23:15,359 --> 00:23:18,080
Speaker 2: Yeah, yeah, I mean I guess that it goes to

470
00:23:18,160 --> 00:23:20,360
Speaker 2: the pitfalls as well. I mean, there are a few

471
00:23:20,359 --> 00:23:23,160
Speaker 2: horror stories that we're hearing, you know, like the people

472
00:23:23,359 --> 00:23:26,520
Speaker 2: saw the two point five percent interest rates is almost

473
00:23:26,680 --> 00:23:28,879
Speaker 2: as if they were normal, and they weren't right. So

474
00:23:29,080 --> 00:23:31,520
Speaker 2: so you know, again it's it's extending that time frame

475
00:23:31,600 --> 00:23:36,000
Speaker 2: and seeing what's realistic over many years rather than basically

476
00:23:36,080 --> 00:23:38,440
Speaker 2: what's happening right now, which we're all focused on.

477
00:23:39,080 --> 00:23:42,160
Speaker 1: Correct And I use the word sustainable in the sense

478
00:23:42,240 --> 00:23:45,920
Speaker 1: of ongoing rather than necessarily green factors, but having that

479
00:23:46,200 --> 00:23:49,119
Speaker 1: sustainable look and you know, as I say it might

480
00:23:49,480 --> 00:23:52,119
Speaker 1: it might be really appealing to save fifty BIPs or

481
00:23:52,119 --> 00:23:54,200
Speaker 1: one hundred BIPs by going for that short term money,

482
00:23:54,480 --> 00:23:57,960
Speaker 1: but there's a reason why that's there. So so again

483
00:23:58,040 --> 00:24:01,560
Speaker 1: I would advise, what what can you afford knowing you

484
00:24:01,640 --> 00:24:04,840
Speaker 1: can that's sort of three to five year cycle. What

485
00:24:05,000 --> 00:24:08,160
Speaker 1: can you afford out of your current salaries not having

486
00:24:08,200 --> 00:24:10,960
Speaker 1: to rely on a bonus or not having to rely

487
00:24:11,119 --> 00:24:15,119
Speaker 1: on yeah, you know, some sort of lotto windfall or

488
00:24:15,200 --> 00:24:18,360
Speaker 1: financial windfall. What is the bit that you can honestly

489
00:24:18,400 --> 00:24:20,760
Speaker 1: sit there and say I can afford this every two

490
00:24:20,840 --> 00:24:21,920
Speaker 1: weeks out of my mortgage.

491
00:24:22,720 --> 00:24:24,320
Speaker 3: And once you do that, I don't think you'll ever

492
00:24:24,400 --> 00:24:25,280
Speaker 3: look back. Yeah.

493
00:24:25,480 --> 00:24:28,280
Speaker 2: Sure, I mean people will always talk about the affordability

494
00:24:28,320 --> 00:24:31,200
Speaker 2: of houses and it's got really tough. And so you know,

495
00:24:31,440 --> 00:24:33,320
Speaker 2: does that when you look at it, does it mean

496
00:24:33,480 --> 00:24:35,600
Speaker 2: maybe moving around the country that kind of thing, because

497
00:24:35,640 --> 00:24:39,960
Speaker 2: Auckland is pretty daunting for a lot of people. I

498
00:24:40,000 --> 00:24:42,439
Speaker 2: guess unless you know, unless you're looking at other options,

499
00:24:42,520 --> 00:24:45,239
Speaker 2: so you've got choices around, maybe apartments, that kind of thing.

500
00:24:45,240 --> 00:24:47,840
Speaker 3: Do you think. I'm probably more on the latter.

501
00:24:48,000 --> 00:24:51,520
Speaker 1: I think the luxury of moving around the country isn't

502
00:24:51,560 --> 00:24:55,639
Speaker 1: there for everybody, particularly younger professionals starting up. There may

503
00:24:55,720 --> 00:24:58,680
Speaker 1: not be the depth of job market. So I think

504
00:24:59,440 --> 00:25:02,400
Speaker 1: looking with in the Auckland stock it's actually maybe looking

505
00:25:02,400 --> 00:25:06,080
Speaker 1: at those other opportunities. It may mean a slightly longer

506
00:25:06,119 --> 00:25:08,359
Speaker 1: commute and may mean needing to use some of the

507
00:25:08,400 --> 00:25:12,280
Speaker 1: public transport. Hopefully that eventually improves over the next few years.

508
00:25:13,119 --> 00:25:15,880
Speaker 1: But I think looking at those different typologies of homes

509
00:25:16,400 --> 00:25:18,879
Speaker 1: will give you some reach in Auckland and just again

510
00:25:19,400 --> 00:25:22,359
Speaker 1: getting in. It's not your forever home, it's not you

511
00:25:22,440 --> 00:25:23,920
Speaker 1: don't have to think, oh, I'm not going to be in.

512
00:25:23,960 --> 00:25:27,960
Speaker 1: It's fine, but start on the ladder to get things moving.

513
00:25:28,080 --> 00:25:29,720
Speaker 2: Yeah, I guess there's a trap and looking at the

514
00:25:29,800 --> 00:25:31,760
Speaker 2: home that you want to end up and going oh,

515
00:25:31,840 --> 00:25:36,400
Speaker 2: that's just far too expensive. I can't imagine ef you're

516
00:25:36,400 --> 00:25:38,600
Speaker 2: getting there right, So you've got to get started.

517
00:25:39,040 --> 00:25:42,199
Speaker 1: I think so, And I think about my own personal

518
00:25:42,320 --> 00:25:45,280
Speaker 1: situation as well. I don't think you should always going

519
00:25:45,359 --> 00:25:48,679
Speaker 1: to be wanting something different. And maybe the kids are

520
00:25:48,760 --> 00:25:51,240
Speaker 1: left home, maybe there's a new addition to the family.

521
00:25:52,400 --> 00:25:55,760
Speaker 1: All these things will naturally change what you'll look for

522
00:25:56,000 --> 00:25:59,320
Speaker 1: in a home. So don't try and second guess your

523
00:25:59,359 --> 00:26:02,040
Speaker 1: own self five years time. Yeah, I think as I say,

524
00:26:02,080 --> 00:26:03,760
Speaker 1: as long as you are as long as you can

525
00:26:03,840 --> 00:26:05,600
Speaker 1: afford it, and I mean to afford out of your

526
00:26:06,160 --> 00:26:10,520
Speaker 1: out of your current salary or your family income. That's

527
00:26:10,560 --> 00:26:13,120
Speaker 1: what we're looking for, not going, oh if this year

528
00:26:13,200 --> 00:26:15,480
Speaker 1: we do this in this Yeah, that's the pitfall. I

529
00:26:15,520 --> 00:26:16,480
Speaker 1: think we're gonnall stay clear.

530
00:26:16,680 --> 00:26:16,760
Speaker 3: Well.

531
00:26:16,800 --> 00:26:18,359
Speaker 2: One of one of the things I always think is,

532
00:26:18,520 --> 00:26:21,639
Speaker 2: you know, a marker of the very wealthy and the

533
00:26:21,640 --> 00:26:26,159
Speaker 2: people who are successful in business is actually acting. I mean,

534
00:26:26,200 --> 00:26:28,800
Speaker 2: you know, actually doing the thing. Because we spend a

535
00:26:28,800 --> 00:26:30,639
Speaker 2: lot of time talking about it and thinking about it,

536
00:26:30,720 --> 00:26:32,600
Speaker 2: but at some point you have to just get out

537
00:26:32,600 --> 00:26:35,560
Speaker 2: there and do it. I suppose is it to some people?

538
00:26:35,600 --> 00:26:38,560
Speaker 2: It might even be daunting just just the very process.

539
00:26:38,720 --> 00:26:41,240
Speaker 2: I mean, does Baileys and real estate agents sort of

540
00:26:41,880 --> 00:26:45,040
Speaker 2: open to just talking to people and get explaining how

541
00:26:45,119 --> 00:26:47,520
Speaker 2: the because the paperwork and all that sort of stuff

542
00:26:47,560 --> 00:26:48,399
Speaker 2: can be quite daunting.

543
00:26:49,040 --> 00:26:49,680
Speaker 3: Of course it can.

544
00:26:49,800 --> 00:26:52,400
Speaker 1: And as we said, it's the biggest decision that someone

545
00:26:52,440 --> 00:26:55,720
Speaker 1: will ever make in their life. So we like to

546
00:26:55,720 --> 00:26:59,280
Speaker 1: get alongside people early, and we sort of talk about

547
00:26:59,320 --> 00:27:00,720
Speaker 1: it as match fatter. I seem to have a lot

548
00:27:00,760 --> 00:27:04,560
Speaker 1: of sports references. But you know, we will take someone

549
00:27:04,600 --> 00:27:08,560
Speaker 1: along to an auction that the property they're not interested in,

550
00:27:09,000 --> 00:27:11,160
Speaker 1: but just to go and sit in the room and go, hey, hey,

551
00:27:11,240 --> 00:27:12,119
Speaker 1: this is what's happening.

552
00:27:12,200 --> 00:27:15,159
Speaker 3: This is the vendor. The auctioneer now is calling for

553
00:27:15,200 --> 00:27:15,560
Speaker 3: an opening.

554
00:27:15,640 --> 00:27:18,080
Speaker 1: But this is what that means, you know, this is

555
00:27:18,640 --> 00:27:21,159
Speaker 1: this is the process that that guy there, he's on

556
00:27:21,280 --> 00:27:24,240
Speaker 1: the phone to someone betting that they're watching online, and

557
00:27:25,160 --> 00:27:27,840
Speaker 1: these are the documents that they're going through to set

558
00:27:27,880 --> 00:27:31,639
Speaker 1: a reserve or to to maybe change terms for a

559
00:27:32,080 --> 00:27:35,120
Speaker 1: slightly little maybe a delay the deposit by two weeks

560
00:27:35,240 --> 00:27:38,359
Speaker 1: or subject to some other term. And as you do that,

561
00:27:38,560 --> 00:27:41,880
Speaker 1: more and more they gain confidence in the process, which

562
00:27:41,960 --> 00:27:45,960
Speaker 1: then means they're match fit to buy when their ideal

563
00:27:46,040 --> 00:27:50,480
Speaker 1: property is there. Yeah, and there's nothing worse than seeing

564
00:27:50,520 --> 00:27:52,880
Speaker 1: that property and not being ready, haven't spoken to the bank,

565
00:27:53,000 --> 00:27:56,399
Speaker 1: haven't got a valiation, haven't got your ducks in a row, because.

566
00:27:57,200 --> 00:27:58,760
Speaker 2: You might it's going to take your two weeks or

567
00:27:58,800 --> 00:27:59,920
Speaker 2: something and you might miss it.

568
00:28:00,040 --> 00:28:01,720
Speaker 3: That'spot on absolutely spot only.

569
00:28:08,800 --> 00:28:10,840
Speaker 2: Let's move on to our quick fire questions. I know

570
00:28:10,960 --> 00:28:13,600
Speaker 2: you've you've you've listened to the podcast before, so it

571
00:28:13,680 --> 00:28:16,520
Speaker 2: won't be too surprising. But what's the poorest you've ever been?

572
00:28:17,320 --> 00:28:19,040
Speaker 2: A student at Massive University?

573
00:28:19,200 --> 00:28:22,800
Speaker 1: Yeah, sitting in a five bedroom flat on Ada Street,

574
00:28:23,040 --> 00:28:26,440
Speaker 1: struggling to avoid forward baked beans from back and save

575
00:28:26,520 --> 00:28:27,200
Speaker 1: to get through the week.

576
00:28:27,440 --> 00:28:30,320
Speaker 2: It is so often it's it's it is the experience.

577
00:28:30,640 --> 00:28:32,320
Speaker 2: But was it valuable to you? Do you think to

578
00:28:32,400 --> 00:28:32,880
Speaker 2: be that poor?

579
00:28:33,040 --> 00:28:37,280
Speaker 1: Absolutely? Yeah, again, I think you appreciate the value of money.

580
00:28:38,680 --> 00:28:41,560
Speaker 1: I actually talk to someone about the value of money.

581
00:28:41,800 --> 00:28:45,080
Speaker 1: I actually worked in a student bar alongside Anni moobray

582
00:28:46,240 --> 00:28:49,520
Speaker 1: re billionaire, and you know, we both worked as hard

583
00:28:49,520 --> 00:28:51,840
Speaker 1: as each other to get that they'd be able to

584
00:28:51,880 --> 00:28:53,400
Speaker 1: afford that drink at the end of the week or

585
00:28:53,480 --> 00:28:54,800
Speaker 1: that cannon bake beans.

586
00:28:54,880 --> 00:28:58,080
Speaker 3: So I think the value of being poor, or the

587
00:28:58,160 --> 00:29:00,480
Speaker 3: value of understanding money is hue. Yeah.

588
00:29:00,640 --> 00:29:03,360
Speaker 2: Absolutely. On the flip side of that when you finally

589
00:29:04,160 --> 00:29:07,080
Speaker 2: got a bit of money together, had a few paychecks

590
00:29:07,120 --> 00:29:09,440
Speaker 2: in your pocket, was there something that you splashed out

591
00:29:09,480 --> 00:29:12,160
Speaker 2: on to sort of let yourself know that you made

592
00:29:12,160 --> 00:29:13,000
Speaker 2: it to a certain level.

593
00:29:14,080 --> 00:29:17,200
Speaker 3: There's one confession that's a bit of a watch guy. Oh.

594
00:29:17,320 --> 00:29:23,800
Speaker 1: Yes, when there's a nice significant milestone, I've tend to

595
00:29:23,840 --> 00:29:26,280
Speaker 1: have celebrated by buying a watch.

596
00:29:26,400 --> 00:29:30,600
Speaker 3: So each watch will have a story behind And.

597
00:29:30,680 --> 00:29:32,040
Speaker 2: I ask what you're wearing right now?

598
00:29:32,680 --> 00:29:35,480
Speaker 3: Sure? This is the Cerolic sub Mariner. Yeah.

599
00:29:35,960 --> 00:29:39,400
Speaker 1: I actually bought this when we moved back from Dubai

600
00:29:39,560 --> 00:29:41,960
Speaker 1: to New Zealand. So it was that point in my

601
00:29:42,080 --> 00:29:44,640
Speaker 1: life where I was decided to invest in one of these.

602
00:29:44,760 --> 00:29:47,560
Speaker 2: Yeah, because you know it's a passion and it's a hobby,

603
00:29:47,640 --> 00:29:49,960
Speaker 2: but it's actually they are an investment, right, so in

604
00:29:50,080 --> 00:29:52,720
Speaker 2: some ways probably even compared to a car, is it.

605
00:29:53,240 --> 00:29:53,440
Speaker 3: Yeah?

606
00:29:53,800 --> 00:29:56,920
Speaker 1: I got another one for my fortieth from my wife

607
00:29:57,000 --> 00:29:59,560
Speaker 1: and she said, oh, maybe we should look at you

608
00:30:00,000 --> 00:30:02,000
Speaker 1: got enough watches, you know what I mean. I said, well,

609
00:30:02,080 --> 00:30:03,880
Speaker 1: let's come and give them. I'll give them service and

610
00:30:03,960 --> 00:30:07,840
Speaker 1: we'll actually get evaluation. And then after we left she said, well, okay, no,

611
00:30:07,920 --> 00:30:09,520
Speaker 1: you can definitely get another one. Because you make more

612
00:30:09,520 --> 00:30:12,440
Speaker 1: one off watches than you have off off a bunch

613
00:30:12,480 --> 00:30:12,920
Speaker 1: of other things.

614
00:30:12,960 --> 00:30:14,880
Speaker 2: I guess it's much like you know, some people would

615
00:30:14,920 --> 00:30:18,360
Speaker 2: be out whatever, But yeah, it's very cool. Do you

616
00:30:18,400 --> 00:30:20,680
Speaker 2: still imagine winning lotto or do you buy lotto tickets?

617
00:30:22,360 --> 00:30:24,560
Speaker 1: This is a little bit of a cidbar. Loto cracks

618
00:30:24,600 --> 00:30:28,000
Speaker 1: me out right now. People won't buy a ticket to

619
00:30:28,160 --> 00:30:30,320
Speaker 1: win six million dollars, but they will to thirty. I mean,

620
00:30:30,800 --> 00:30:31,640
Speaker 1: I don't understand that.

621
00:30:31,760 --> 00:30:34,080
Speaker 3: And now you know, I do a lot of game

622
00:30:34,200 --> 00:30:36,959
Speaker 3: theory and then sometimes get driven down a rabbit hole

623
00:30:37,040 --> 00:30:37,200
Speaker 3: with it.

624
00:30:37,280 --> 00:30:40,400
Speaker 1: But it's amazing to think that for that, you know,

625
00:30:40,520 --> 00:30:43,160
Speaker 1: that twenty four dollars ticket or whatever it is, someone's

626
00:30:43,200 --> 00:30:45,520
Speaker 1: happy with a thirty million dollars return, but they're not

627
00:30:45,600 --> 00:30:47,120
Speaker 1: happy with a six million dollar return.

628
00:30:47,200 --> 00:30:49,360
Speaker 2: And there's still these minuscule odds regardless.

629
00:30:49,600 --> 00:30:53,560
Speaker 1: Yeah, so no, I occasionally will buy a ticket when

630
00:30:53,600 --> 00:30:57,160
Speaker 1: it's a thirty million dollar jackpot, But no, I think

631
00:30:57,160 --> 00:31:00,280
Speaker 1: we've got to work hard and pretty more sustainable ways

632
00:31:00,280 --> 00:31:00,800
Speaker 1: to deliver that.

633
00:31:01,120 --> 00:31:03,200
Speaker 2: Put your twenty backs a week and a fund for

634
00:31:04,040 --> 00:31:08,880
Speaker 2: correct you can afford deposit on the house. Yeah, we

635
00:31:09,200 --> 00:31:12,320
Speaker 2: touched on this earlier. Actually, but just how important money

636
00:31:12,480 --> 00:31:14,320
Speaker 2: is to you or is it more of a by

637
00:31:14,360 --> 00:31:16,440
Speaker 2: product of success? I mean, what drives you now?

638
00:31:17,880 --> 00:31:22,920
Speaker 1: I still think it's particularly within our team, within our culture,

639
00:31:23,080 --> 00:31:28,720
Speaker 1: it's still the success of that transaction. I recently was

640
00:31:28,800 --> 00:31:33,520
Speaker 1: involved in a deal. It was a lease in christ

641
00:31:33,640 --> 00:31:38,040
Speaker 1: Church for a car company. The fee, by the time

642
00:31:38,120 --> 00:31:41,560
Speaker 1: it's split and divided up between the agents and the company,

643
00:31:43,280 --> 00:31:46,640
Speaker 1: the number would be absolutely nominal. But the excitement to

644
00:31:47,520 --> 00:31:49,920
Speaker 1: do that deal, to have a happy landlord and a

645
00:31:49,960 --> 00:31:54,080
Speaker 1: happy tenant was something that still drives me and our

646
00:31:54,160 --> 00:31:54,880
Speaker 1: team every day.

647
00:31:55,000 --> 00:31:57,600
Speaker 2: I think it's something that's misunderstood by a lot of

648
00:31:57,640 --> 00:32:00,560
Speaker 2: New Zealanders when they look at wealthy and successes for people,

649
00:32:00,600 --> 00:32:05,480
Speaker 2: particularly in business, that they think it is just everyone

650
00:32:05,520 --> 00:32:08,200
Speaker 2: I've talked to it is it's almost always that the

651
00:32:08,480 --> 00:32:11,400
Speaker 2: doing the deal or doing the thing, making the thing happen.

652
00:32:12,160 --> 00:32:15,760
Speaker 2: And some people it's it's whatever, you know, climbing a mountain,

653
00:32:15,840 --> 00:32:17,600
Speaker 2: and some people it's business right.

654
00:32:17,840 --> 00:32:20,400
Speaker 3: Well, it's it all comes back to the customer, you know.

655
00:32:20,520 --> 00:32:22,760
Speaker 1: I think that for us, we don't have widgets, we

656
00:32:22,800 --> 00:32:26,000
Speaker 1: don't have a product we've but but seeing that seeing

657
00:32:26,080 --> 00:32:28,760
Speaker 1: someone give the keys to their new home or to

658
00:32:29,240 --> 00:32:32,160
Speaker 1: you know that someone that's been able to achieve some

659
00:32:32,280 --> 00:32:36,160
Speaker 1: financial freedom by selling an asset. Those things truly do

660
00:32:36,400 --> 00:32:38,560
Speaker 1: drive you to want to do it more and more.

661
00:32:38,880 --> 00:32:42,080
Speaker 2: Yeah, look we're bumping up against time. The last sort

662
00:32:42,120 --> 00:32:44,480
Speaker 2: of question I have is kind of a big one,

663
00:32:44,600 --> 00:32:47,080
Speaker 2: and and it's it's that one about you know, when

664
00:32:47,120 --> 00:32:50,160
Speaker 2: you look at wealth and equality out there, people who

665
00:32:50,200 --> 00:32:52,600
Speaker 2: are just never going to afford a home. If we

666
00:32:52,640 --> 00:32:54,880
Speaker 2: could make your prime minister for a day, what's the

667
00:32:55,040 --> 00:32:56,760
Speaker 2: what's the policy, or what's the thing you'd like to

668
00:32:56,800 --> 00:32:59,400
Speaker 2: do most? That might might shift the dial there.

669
00:33:00,560 --> 00:33:02,720
Speaker 1: I think you've got to take it back to real

670
00:33:02,800 --> 00:33:06,160
Speaker 1: estate because I am there and that's my game. We

671
00:33:06,320 --> 00:33:10,840
Speaker 1: need to build more homes right now. Obviously QUI bill

672
00:33:11,000 --> 00:33:12,520
Speaker 1: these days is a bit of a bad word. But

673
00:33:13,320 --> 00:33:16,480
Speaker 1: if we were able to deliver a successful key we build,

674
00:33:17,120 --> 00:33:19,520
Speaker 1: I think that will change more lives and deliver more

675
00:33:19,600 --> 00:33:22,920
Speaker 1: value for our country than anything else, whether whether you

676
00:33:23,040 --> 00:33:25,600
Speaker 1: own it or whether you rent it, or whether you

677
00:33:25,760 --> 00:33:29,600
Speaker 1: are unfortunate enough to be just living in there because

678
00:33:29,640 --> 00:33:34,280
Speaker 1: that's your accommodation. I think there's real pride in having

679
00:33:34,320 --> 00:33:37,960
Speaker 1: your own place to call home. People work harder on

680
00:33:38,080 --> 00:33:40,880
Speaker 1: community they work harder to send their kids to school

681
00:33:40,920 --> 00:33:44,520
Speaker 1: and get educated. They feel a belonging to be a

682
00:33:44,600 --> 00:33:48,400
Speaker 1: part of something bigger than themselves. So if you could

683
00:33:48,440 --> 00:33:51,920
Speaker 1: waive that magic wand and deliver that policy, I think

684
00:33:51,960 --> 00:33:53,520
Speaker 1: that would change New Zealand for the better.

685
00:33:53,560 --> 00:33:55,280
Speaker 2: I mean, do you think there's a way to get

686
00:33:55,880 --> 00:33:58,440
Speaker 2: You know, we've seen some progress in the last year

687
00:33:58,560 --> 00:34:02,080
Speaker 2: or so on affordability, but the risk is, you know,

688
00:34:02,160 --> 00:34:04,640
Speaker 2: you don't want a dead market. It's no good for anyone.

689
00:34:05,000 --> 00:34:07,400
Speaker 2: Is there a way to sort of keep house prices

690
00:34:07,520 --> 00:34:11,120
Speaker 2: sort of relatively subdued so that affordability comes back, but

691
00:34:11,400 --> 00:34:15,080
Speaker 2: without without you know, from your guys perspective, you want

692
00:34:15,080 --> 00:34:16,799
Speaker 2: you need to turn over and you need need people

693
00:34:16,880 --> 00:34:20,000
Speaker 2: to be confident about the market, right I do.

694
00:34:20,200 --> 00:34:23,360
Speaker 3: And Housing Minister, Honorable Bishop and co.

695
00:34:23,600 --> 00:34:27,440
Speaker 1: Might disagree with me on this, but I think supply

696
00:34:27,719 --> 00:34:31,240
Speaker 1: is just one hundred percent the key in that affordable bracket.

697
00:34:31,440 --> 00:34:34,000
Speaker 3: Yeah. I don't think it's going to change the pricing

698
00:34:34,360 --> 00:34:34,799
Speaker 3: over here.

699
00:34:35,000 --> 00:34:37,480
Speaker 2: Yeah for for a villa and pons Bill and we

700
00:34:37,640 --> 00:34:37,960
Speaker 2: in New.

701
00:34:38,000 --> 00:34:40,960
Speaker 1: Zealand very quick to talk about I mean, I'm in

702
00:34:41,040 --> 00:34:42,680
Speaker 1: the game, so I get asked the question a dozen

703
00:34:42,760 --> 00:34:44,320
Speaker 1: times a day, how's the market?

704
00:34:44,560 --> 00:34:47,200
Speaker 3: Yeah, which market are you talking about? Yeah?

705
00:34:47,600 --> 00:34:50,600
Speaker 1: Because I think the three or four million dollar home

706
00:34:50,640 --> 00:34:53,640
Speaker 1: and rimy era has a different answer than the nine

707
00:34:53,760 --> 00:34:56,160
Speaker 1: hundred thousand dollars unit at Hobsonville. Yeah, it has a

708
00:34:56,200 --> 00:35:00,399
Speaker 1: different answer to a apartment in the CBD. So I think,

709
00:35:01,640 --> 00:35:05,480
Speaker 1: just by increasing supply in an affordable market, is it

710
00:35:05,680 --> 00:35:09,799
Speaker 1: necessarily going to skew the entire New Genumy State market? Yeah,

711
00:35:10,000 --> 00:35:13,800
Speaker 1: but it will create more opportunities for people.

712
00:35:13,600 --> 00:35:14,520
Speaker 3: To own their own homes.

713
00:35:14,719 --> 00:35:17,279
Speaker 2: And it does feel like maybe that with you know,

714
00:35:17,480 --> 00:35:20,240
Speaker 2: signs of progress perhaps so that we could get something

715
00:35:20,440 --> 00:35:20,840
Speaker 2: rolling with.

716
00:35:21,640 --> 00:35:23,600
Speaker 1: I think there's a whole other podcast there on that.

717
00:35:24,640 --> 00:35:30,239
Speaker 1: But look, the macro economics are right. Land has come off,

718
00:35:31,600 --> 00:35:34,919
Speaker 1: building costs have come off, interest rates are trending down.

719
00:35:35,040 --> 00:35:37,760
Speaker 3: So if there's a time to buy land and build houses,

720
00:35:38,040 --> 00:35:38,440
Speaker 3: it's now.

721
00:35:38,760 --> 00:35:41,759
Speaker 1: Yeah, you know, it's got to be a time where

722
00:35:41,800 --> 00:35:45,520
Speaker 1: we invest in again, as I said before, stop thinking

723
00:35:45,600 --> 00:35:48,280
Speaker 1: in these quarterly or these twelve monthly cycles.

724
00:35:48,360 --> 00:35:52,000
Speaker 3: We need to get a long term vision on delivering supply.

725
00:35:52,400 --> 00:35:53,920
Speaker 2: And that does come back to some of that long

726
00:35:54,000 --> 00:35:57,040
Speaker 2: term thinking. So then, how do you feel about you know,

727
00:35:57,920 --> 00:36:01,000
Speaker 2: all the debate about on that demand side, you know, taxing,

728
00:36:01,080 --> 00:36:04,760
Speaker 2: capital gains tax, you know, all the things that people

729
00:36:04,800 --> 00:36:06,439
Speaker 2: sort of see as ways to sort of, I guess,

730
00:36:06,520 --> 00:36:09,320
Speaker 2: subdue the market demand.

731
00:36:10,360 --> 00:36:11,000
Speaker 3: Yeah, I guess.

732
00:36:11,080 --> 00:36:13,520
Speaker 1: I guess we're tax will deal with demand. I think,

733
00:36:13,520 --> 00:36:16,480
Speaker 1: you know, obviously we're obviously we're talking increasing supplies the

734
00:36:16,480 --> 00:36:20,960
Speaker 1: other way. I'm not against seeing taxes around real estate.

735
00:36:21,360 --> 00:36:23,839
Speaker 1: I don't know that capital gains tax is the right

736
00:36:23,880 --> 00:36:26,480
Speaker 1: way to go about it. We can look across the

737
00:36:26,560 --> 00:36:30,360
Speaker 1: ditch at our colleagues in Australia. Obviously there is a

738
00:36:30,400 --> 00:36:34,399
Speaker 1: stamp duty there, there is a foreign buyers tax there.

739
00:36:34,840 --> 00:36:37,879
Speaker 1: These are things that have been debated around the last

740
00:36:37,920 --> 00:36:41,600
Speaker 1: election cycle, and I do think there is an opportunity there,

741
00:36:41,960 --> 00:36:44,239
Speaker 1: and particularly if we can ring fence that and see

742
00:36:44,280 --> 00:36:49,279
Speaker 1: that going into housing supply. Yeah, perhaps a stamp duty

743
00:36:49,920 --> 00:36:52,440
Speaker 1: isn't a bad thing for us to look at introducing

744
00:36:52,560 --> 00:36:52,960
Speaker 1: over time.

745
00:36:53,320 --> 00:36:56,440
Speaker 2: Sure, that's brilliant. Lloyd, going to leave it there. Thank

746
00:36:56,480 --> 00:36:57,440
Speaker 2: you very much for talking.

747
00:36:57,600 --> 00:36:59,280
Speaker 3: Thank you, Lim appreciate it. Cheers.

748
00:37:00,440 --> 00:37:03,480
Speaker 2: Thanks for listening to this episode of Money Talks. If

749
00:37:03,520 --> 00:37:05,359
Speaker 2: you want to get in touch, drop me a line

750
00:37:05,600 --> 00:37:09,319
Speaker 2: Liam dot Dan at zed me dot co dot nz

751
00:37:10,080 --> 00:37:12,640
Speaker 2: and you can read more from me at inzidherld dot

752
00:37:12,719 --> 00:37:16,239
Speaker 2: co dot nz. Thanks to my producer Ethan Sills and

753
00:37:16,440 --> 00:37:21,320
Speaker 2: sound engineer Lianne mac donald. Follow Money Talks on iHeartRadio

754
00:37:21,480 --> 00:37:24,560
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755
00:37:24,760 --> 00:37:25,560
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