1 00:00:00,560 --> 00:00:03,360 Speaker 1: As his new shul shippy. I'm Andrew Dickins. The Olympics 2 00:00:03,560 --> 00:00:06,040 Speaker 1: continue tonight on I Got the shittle right here, First 3 00:00:06,040 --> 00:00:10,160 Speaker 1: Events seven thirty pm. Owen Robinson and the shooting. He's 4 00:00:10,200 --> 00:00:12,479 Speaker 1: doing the trap and we've got the women's pair and 5 00:00:12,520 --> 00:00:15,000 Speaker 1: the rowing and the Coxus women and they're in a 6 00:00:15,040 --> 00:00:17,360 Speaker 1: rapper charge. That's not a good look. And on we go, 7 00:00:17,520 --> 00:00:21,320 Speaker 1: of course, all coverage on Gold Sport and also on iHeartRadio. 8 00:00:21,360 --> 00:00:23,400 Speaker 1: About an hour ago we were talking with Josie mcganney 9 00:00:23,480 --> 00:00:26,880 Speaker 1: and Trischets and we recounted the story of the volunteer 10 00:00:26,920 --> 00:00:30,280 Speaker 1: at the Olympic pool in Paris who stripped down to 11 00:00:30,640 --> 00:00:34,800 Speaker 1: his very fancy budget smugglers to retrieve a bathing cap 12 00:00:34,840 --> 00:00:36,640 Speaker 1: from the pool, and much has been made about the 13 00:00:36,640 --> 00:00:39,040 Speaker 1: fact that he was wearing a budget smugglers, and Josie 14 00:00:39,120 --> 00:00:42,680 Speaker 1: revealed that her husband was basically told when he turned 15 00:00:42,720 --> 00:00:44,440 Speaker 1: up in a pair of board shorts that he would 16 00:00:44,440 --> 00:00:46,960 Speaker 1: be arrested and that it was a legal priority that 17 00:00:46,960 --> 00:00:49,199 Speaker 1: he had to wear Budgee smugglers in Paris, and we 18 00:00:49,240 --> 00:00:51,720 Speaker 1: all laughed and went, ho, ho, that's very funny. I 19 00:00:51,800 --> 00:00:54,560 Speaker 1: now have a text from Nick who says exactly the 20 00:00:54,600 --> 00:00:57,000 Speaker 1: same thing happened to me in France. I had to 21 00:00:57,040 --> 00:00:59,800 Speaker 1: go out and buy a pair of skimpy trunks from 22 00:00:59,800 --> 00:01:03,560 Speaker 1: a vending machine in the reception of the pool. My 23 00:01:03,720 --> 00:01:06,840 Speaker 1: daughters thought it was all very, very funny, because the 24 00:01:06,959 --> 00:01:10,120 Speaker 1: pool staff said to me it was a hygiene issue. 25 00:01:11,480 --> 00:01:14,000 Speaker 1: You can wear board shorts, You can wear shorts and paris, 26 00:01:14,560 --> 00:01:17,160 Speaker 1: but you need to wear some budge smokers underneath. Just 27 00:01:17,200 --> 00:01:19,240 Speaker 1: a handy hack. It is twenty three to. 28 00:01:19,160 --> 00:01:21,120 Speaker 2: Seven News Talk Zibby. 29 00:01:22,040 --> 00:01:25,559 Speaker 1: All right, we've got a Wellington property developer who's calling 30 00:01:25,560 --> 00:01:27,960 Speaker 1: on the Reserve Bank to make it easier to finance, 31 00:01:28,280 --> 00:01:33,319 Speaker 1: repurpose to rent developments. So these are vacant and underused 32 00:01:33,360 --> 00:01:38,400 Speaker 1: commercial buildings that you can then convert into apartment Alec 33 00:01:38,480 --> 00:01:41,080 Speaker 1: Castle's has been doing a whole heap of these in 34 00:01:41,280 --> 00:01:44,399 Speaker 1: Wellington and he wants to form a coalition of the 35 00:01:44,440 --> 00:01:47,600 Speaker 1: will of the willing to ask the Reserve Bank to 36 00:01:47,760 --> 00:01:50,760 Speaker 1: make it easier and cheaper to make this happen. So 37 00:01:50,840 --> 00:01:52,720 Speaker 1: Alex Castle's joins me, Now. 38 00:01:52,600 --> 00:01:56,440 Speaker 2: Hello, Alex, Hi there, hey you going Andrew good? 39 00:01:57,000 --> 00:02:01,960 Speaker 1: Explain how can the Reserve Bank make a repurposing of 40 00:02:02,280 --> 00:02:03,960 Speaker 1: commercial buildings cheaper? 41 00:02:05,600 --> 00:02:10,120 Speaker 2: I just have to recollect my thoughts distracted by the 42 00:02:10,120 --> 00:02:16,760 Speaker 2: bugly sorry, the budge smugglers. I don't see that one coming. No, no, 43 00:02:16,960 --> 00:02:19,919 Speaker 2: So how can they make it cheaper? Well, there are 44 00:02:20,040 --> 00:02:26,280 Speaker 2: various different sorts of lending and the so different forms 45 00:02:26,320 --> 00:02:30,320 Speaker 2: of loan loans attract different interest rates. And why that's 46 00:02:30,360 --> 00:02:35,160 Speaker 2: the case is a more risky loan like a commercial 47 00:02:35,160 --> 00:02:38,480 Speaker 2: probably lie or a loan that's deemed more risky by 48 00:02:38,520 --> 00:02:42,880 Speaker 2: the reserve bank by the regulator, requires the bank to 49 00:02:43,000 --> 00:02:47,840 Speaker 2: hold more capital against that loan to safeguard against the fault. 50 00:02:49,080 --> 00:02:52,520 Speaker 2: And as you get progressively less risky loans or loans 51 00:02:52,560 --> 00:02:55,640 Speaker 2: that are perceived as less risky, that capital allocation, that 52 00:02:55,760 --> 00:02:58,240 Speaker 2: amount of money that has to get held against the 53 00:02:58,280 --> 00:03:03,440 Speaker 2: loan to safeguard against the fault reduces and reduces, thereby 54 00:03:03,480 --> 00:03:06,120 Speaker 2: allowing them to lend more of its money, put more 55 00:03:06,120 --> 00:03:09,799 Speaker 2: of its money to work. That then allows the bank 56 00:03:09,800 --> 00:03:11,519 Speaker 2: to charge a lower interest Right. 57 00:03:11,600 --> 00:03:13,640 Speaker 1: So are you are you actually telling me that if 58 00:03:13,680 --> 00:03:18,480 Speaker 1: you're wanting to build a twenty story apartment building from scratch, 59 00:03:18,800 --> 00:03:20,960 Speaker 1: you can borrow that sort of like at a residential 60 00:03:21,040 --> 00:03:22,840 Speaker 1: rate and that is cheaper. But if you want to 61 00:03:22,880 --> 00:03:26,480 Speaker 1: take an already existing twinty story commercial building and convert 62 00:03:26,520 --> 00:03:29,120 Speaker 1: it into apartments. It's going to cost you more to 63 00:03:29,200 --> 00:03:29,880 Speaker 1: source your money. 64 00:03:31,040 --> 00:03:33,680 Speaker 2: Not well, merely, it's not not exactly To be honest, 65 00:03:33,800 --> 00:03:38,920 Speaker 2: all build to rent developments, whether they're a repurpose or 66 00:03:38,960 --> 00:03:42,640 Speaker 2: a new build, would attract the commercial interest rate, and 67 00:03:42,680 --> 00:03:45,360 Speaker 2: that that comes if there comes, there comes a higher 68 00:03:45,440 --> 00:03:51,080 Speaker 2: rate and residential or or possibly more more importantly like infrastructure. 69 00:03:51,120 --> 00:03:55,040 Speaker 2: I think what we're talking about here is the capacity 70 00:03:55,080 --> 00:03:59,480 Speaker 2: or the ability for the build to rent and repurposing 71 00:03:59,560 --> 00:04:03,760 Speaker 2: to to be more of like a social infrastructure got 72 00:04:04,040 --> 00:04:07,960 Speaker 2: where you building communities, building safety and cities and are 73 00:04:08,000 --> 00:04:10,760 Speaker 2: providing long term tenure and affordable rents. 74 00:04:10,800 --> 00:04:13,120 Speaker 1: So let's keep it simple. You know, the build to 75 00:04:13,160 --> 00:04:15,680 Speaker 1: rent attracts a commercial rate. We know the government sees 76 00:04:15,680 --> 00:04:18,479 Speaker 1: build to rent as a way of solving the housing crisis. 77 00:04:18,720 --> 00:04:22,159 Speaker 1: So surely the government should actually get rid of the 78 00:04:22,279 --> 00:04:26,039 Speaker 1: higher interest rates scenario if they could around build to rent. 79 00:04:26,360 --> 00:04:27,640 Speaker 1: Could they do that? Or is this up to the 80 00:04:27,640 --> 00:04:29,719 Speaker 1: Reserve Bank alone because they're independent. 81 00:04:31,200 --> 00:04:33,000 Speaker 2: It would be up to the Reserve that the Reserve 82 00:04:33,040 --> 00:04:38,320 Speaker 2: Bank are independent, as you say, But I think, yeah, 83 00:04:38,360 --> 00:04:43,200 Speaker 2: this idea that we can view build to rent as 84 00:04:43,279 --> 00:04:47,240 Speaker 2: a form of social infrastructure and and well, I think 85 00:04:47,240 --> 00:04:49,919 Speaker 2: the other thing is where government or local government or 86 00:04:49,920 --> 00:04:55,120 Speaker 2: community housing providers form part of a leasing arrangement, that 87 00:04:55,240 --> 00:05:00,400 Speaker 2: then makes the proposition safer from a commercial perspective, that's 88 00:05:00,440 --> 00:05:03,680 Speaker 2: another way that an interest rate could be driven down 89 00:05:03,720 --> 00:05:07,120 Speaker 2: because that perceived risk. These capital locations all come down 90 00:05:07,160 --> 00:05:09,839 Speaker 2: to perceive risk. If the risk is less, if the 91 00:05:09,880 --> 00:05:12,960 Speaker 2: risk is lower, then there's a less chance of default 92 00:05:13,000 --> 00:05:16,040 Speaker 2: and obviously a mass number of defaults and one lending 93 00:05:16,080 --> 00:05:18,839 Speaker 2: category that's what we saw with the GFC, too much 94 00:05:18,920 --> 00:05:23,200 Speaker 2: easy lending to I guess people without the credentials to 95 00:05:23,240 --> 00:05:27,000 Speaker 2: have those loans. It's all about maintaining the security and 96 00:05:27,040 --> 00:05:31,440 Speaker 2: the I guess, the reliability of the financial system. But 97 00:05:31,560 --> 00:05:34,359 Speaker 2: if we I think we're where we were looking at 98 00:05:34,400 --> 00:05:39,320 Speaker 2: social instructure and particularly lease arrangements then involve chips or 99 00:05:39,400 --> 00:05:43,279 Speaker 2: local councils, there's a degree of safety there and a 100 00:05:43,560 --> 00:05:47,120 Speaker 2: range of outcomes that I think just by such. 101 00:05:46,960 --> 00:05:49,880 Speaker 1: Loans absolutely, and I know I know you've done some 102 00:05:49,960 --> 00:05:51,560 Speaker 1: of the things. I know you've done some of the 103 00:05:51,640 --> 00:05:56,359 Speaker 1: things in Wellington, but without you know, the handy loan rates. 104 00:05:56,520 --> 00:05:58,240 Speaker 1: But at the same time. If we look at Auckland, 105 00:05:58,720 --> 00:06:01,560 Speaker 1: which has a mid to full of the outdated commercial 106 00:06:01,600 --> 00:06:04,400 Speaker 1: buildings that they find almost impossible to lease out. A 107 00:06:04,520 --> 00:06:07,840 Speaker 1: town has moved north, basically down to the waterfront, and 108 00:06:07,880 --> 00:06:10,560 Speaker 1: we have this you know, no man's name of all 109 00:06:10,600 --> 00:06:13,600 Speaker 1: sorts of terrible buildings, and that's also attracting terrible people. 110 00:06:13,960 --> 00:06:16,320 Speaker 1: That's a place that really desperately needs to be redeveloped. 111 00:06:17,720 --> 00:06:20,040 Speaker 2: I agree with you entirely, and I think what we've 112 00:06:20,040 --> 00:06:24,080 Speaker 2: seen in Wellington is, you know, there's a some there 113 00:06:24,120 --> 00:06:27,040 Speaker 2: was an article recently about some of the properties that 114 00:06:27,040 --> 00:06:30,720 Speaker 2: we've done in Upper Willis Street, and you know, a 115 00:06:30,839 --> 00:06:34,480 Speaker 2: reverends from from a nearby church made comments that the 116 00:06:34,839 --> 00:06:38,760 Speaker 2: cohort of people in the area had changed quite significantly 117 00:06:38,800 --> 00:06:42,680 Speaker 2: as a result of basically residentialization of a of a 118 00:06:42,760 --> 00:06:46,599 Speaker 2: number of unutilized office buildings. And I think the same 119 00:06:46,640 --> 00:06:49,520 Speaker 2: can happen in the christ and sorry not christ could 120 00:06:49,839 --> 00:06:52,360 Speaker 2: Crassias but been an awk point. I think even Queen's 121 00:06:52,360 --> 00:06:55,240 Speaker 2: Pak Road, some of those areas that have kind of 122 00:06:55,760 --> 00:06:59,680 Speaker 2: have reached an impass really they could they could turn 123 00:06:59,720 --> 00:07:02,800 Speaker 2: around quite quickly if residual populations were built up there. 124 00:07:02,839 --> 00:07:07,680 Speaker 2: And in communities. Really that's the most important, the communities 125 00:07:07,720 --> 00:07:08,200 Speaker 2: that result. 126 00:07:08,560 --> 00:07:11,560 Speaker 1: I get that. How I do have one worry because 127 00:07:11,600 --> 00:07:13,080 Speaker 1: more and more people have been talking to her a 128 00:07:13,160 --> 00:07:15,960 Speaker 1: part of body corporates and et cetera, talk about the 129 00:07:16,560 --> 00:07:18,920 Speaker 1: rate of failure in terms of whether tightness et cetera 130 00:07:19,080 --> 00:07:21,400 Speaker 1: is far greater in a reuse building than a new 131 00:07:21,440 --> 00:07:22,160 Speaker 1: build building. 132 00:07:22,160 --> 00:07:26,160 Speaker 2: Would you agree, well, no, that depends entirely on the materials. 133 00:07:26,160 --> 00:07:29,120 Speaker 2: I think there were a lot of in the early nineties, 134 00:07:29,160 --> 00:07:35,320 Speaker 2: there was a lot of I guess the building materials 135 00:07:35,320 --> 00:07:38,200 Speaker 2: in that period were fully more problematic. I think in 136 00:07:39,160 --> 00:07:44,080 Speaker 2: a concrete building, you know, well well built concrete building, 137 00:07:44,320 --> 00:07:47,200 Speaker 2: you'd be be pretty good. I don't think there would 138 00:07:47,200 --> 00:07:47,840 Speaker 2: be an issue. 139 00:07:48,000 --> 00:07:49,680 Speaker 1: Alex come to Walklan. We need you and I thank 140 00:07:49,680 --> 00:07:50,800 Speaker 1: you so much for your time today. 141 00:07:51,840 --> 00:07:53,200 Speaker 2: Great nice to talk to you. Thank you. 142 00:07:53,360 --> 00:07:57,200 Speaker 1: Alex Castle's he's a Wellington property developer. He's done these conversions. 143 00:07:57,200 --> 00:07:59,720 Speaker 1: He's built to rents in the middle of Wellington and 144 00:07:59,800 --> 00:08:02,880 Speaker 1: they could be an answer for Auckland's midtown still to come. 145 00:08:02,960 --> 00:08:06,560 Speaker 1: Gavin Gray from the UK. Somebody also asked why are 146 00:08:06,560 --> 00:08:09,920 Speaker 1: farm interest rates so high? It's all about a secaid 147 00:08:09,920 --> 00:08:12,760 Speaker 1: perceived risks. There's all sorts of perceived risks. I don't 148 00:08:12,840 --> 00:08:18,840 Speaker 1: understand why some things I like build. I don't understand 149 00:08:18,880 --> 00:08:21,760 Speaker 1: a lot of these perceived risks, but as the people 150 00:08:21,800 --> 00:08:23,800 Speaker 1: doing the perceptions, but they're the ones holding us back. 151 00:08:24,640 --> 00:08:27,800 Speaker 2: For more from Hither duplessy Alan Drive, listen live to 152 00:08:27,920 --> 00:08:30,960 Speaker 2: news talks. It'd be from four pm weekdays, or follow 153 00:08:31,000 --> 00:08:32,760 Speaker 2: the podcast on iHeartRadio.