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