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Speaker 1: Right, let's get to property. House prices the most affordable

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Speaker 1: they've been in a decade. This is outside of the

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Speaker 1: COVID drop. National value to income ratio down to seven

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Speaker 1: point two for quarter four of twenty twenty five. That's

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Speaker 1: the lowest since twenty sixteen. The long term average is

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Speaker 1: six point eight. Matt Ball Property Investors Federation is with

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Speaker 1: us this morning. Matt, Good morning, Good morning, Ronnie. Well, yeah,

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Speaker 1: I'm very well, thank you. Is this where we go

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Speaker 1: out and buy lots of house.

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Speaker 2: Well, I mean it's still above the average long run

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Speaker 2: affordability measure, so it's great to see that number come down.

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Speaker 2: That's good for New Zealand, good for young people trying

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Speaker 2: to buy a house. But it'd be nice if that

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Speaker 2: dropped down a little bit further.

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Speaker 1: When you say good news for everyone, yes, good news

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Speaker 1: for first home buyers. Do investors go out and buy

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Speaker 1: at a time like this? Would you know?

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Speaker 2: Are they? This isn't the sort of measure that drives investors.

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Speaker 2: And if you look at some of the other surveys

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Speaker 2: happening at the moment, you actually see there's more investors

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Speaker 2: looking to sell at the moment. So the sort of

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Speaker 2: things that will drive an investor. Are the numbers you know,

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Speaker 2: if I buy this property, can I either add value

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Speaker 2: to it or can I get a good cash flow

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Speaker 2: out of it? So is it a good long term investment?

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Speaker 2: Things that are making investors nervous at the moment, or

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Speaker 2: obviously the election that's a bit tight, things like well,

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Speaker 2: I'm not am I going to be able to rent

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Speaker 2: the property? The rental market is a bit tight at

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Speaker 2: the moment, and that's sort of bringing the affordability down

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Speaker 2: to an achievable level for some people for rents. But

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Speaker 2: are rent's going to fall further? And they may do.

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Speaker 2: So it's biggest picture things that are concerning investors at

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Speaker 2: the moment. But also in some areas things are fine.

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Speaker 2: So if you go down the bottom of the South Island,

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Speaker 2: I think that the rental market there is much stronger

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Speaker 2: and some investors are are much more active.

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Speaker 1: How worrying is that interest deductibility thing from labor. I

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Speaker 1: mean we've talked about this before and you know your

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Speaker 1: reckonss maybe maybe they'll bring back fifty percent. I mean,

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Speaker 1: if you're looking, if you're weighing up investment options, as

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Speaker 1: you say, there's a whole bunch of things you think about.

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Speaker 1: But how much of a worry or drag is that one.

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Speaker 2: Interested actability? And you're right, Ryan, it really does look

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Speaker 2: like Labor are going to remove it again or at

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Speaker 2: least fifty percent. It's a huge worry. I just with

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Speaker 2: any business, if you suddenly couldn't deduct one of your

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Speaker 2: major expenses, that really changes the economics of it. So, yes,

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Speaker 2: there are people and I know dotally and this isn't

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Speaker 2: hard evidence, but I know people who are selling a

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Speaker 2: few properties as they've got more than one, just to

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Speaker 2: get ahead of things to encase the election goes Labour's

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Speaker 2: way and interested actability is removed. It is a really

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Speaker 2: big concern.

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Speaker 1: Matt, appreciate your time this morning. Thanks for being with me,

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Speaker 1: Matt Boll Property Investors Federation.

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Speaker 2: For more from Early Edition with Ryan Bridge, listen live

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