1
00:00:01,280 --> 00:00:01,640
Speaker 1: Hello.

2
00:00:01,800 --> 00:00:04,000
Speaker 2: I am Paula Bunett, and welcome to my New Zealand

3
00:00:04,080 --> 00:00:17,479
Speaker 2: Herald podcast Ask Me Anything. Now. One thing I've bluntened

4
00:00:17,520 --> 00:00:20,320
Speaker 2: life is it's never too late to learn something new.

5
00:00:20,720 --> 00:00:23,680
Speaker 1: So on this podcast, I talk to people from all walks.

6
00:00:23,440 --> 00:00:25,560
Speaker 2: Of life to hear about how they got to where

7
00:00:25,560 --> 00:00:27,880
Speaker 2: they are, get some advice and guidance.

8
00:00:27,560 --> 00:00:29,960
Speaker 1: On some of life's biggest questions.

9
00:00:30,360 --> 00:00:32,080
Speaker 2: Right, a bit of a different episode for you.

10
00:00:32,120 --> 00:00:32,360
Speaker 1: Today.

11
00:00:32,440 --> 00:00:35,519
Speaker 2: We're nearing the end of season five of Ask Me Anything,

12
00:00:35,840 --> 00:00:38,360
Speaker 2: and we have had so much great advice across the season.

13
00:00:38,760 --> 00:00:42,199
Speaker 2: But today we've bought in a big gun for some

14
00:00:42,280 --> 00:00:45,879
Speaker 2: really practical advice on a topic that is often top of.

15
00:00:45,880 --> 00:00:47,959
Speaker 1: Mind for many. Kiwi's Property.

16
00:00:48,600 --> 00:00:52,839
Speaker 2: Ed McKnight is the resident economist at Opus' Partners. He

17
00:00:53,000 --> 00:00:56,760
Speaker 2: is also the co host of the Property Academy podcast

18
00:00:57,000 --> 00:00:59,400
Speaker 2: and co author of Wealth Planned, How to Invest in

19
00:00:59,400 --> 00:01:02,400
Speaker 2: New Zealand Property and Retire on real Estate.

20
00:01:02,880 --> 00:01:03,120
Speaker 3: Wow.

21
00:01:03,200 --> 00:01:05,960
Speaker 1: He is with me, Hey, Ed, how are you?

22
00:01:06,000 --> 00:01:08,120
Speaker 3: Oh, Paul, it's a great honor to be speaking with you.

23
00:01:08,480 --> 00:01:10,800
Speaker 2: It's good of you to come on two roles for

24
00:01:10,880 --> 00:01:14,920
Speaker 2: my podcast, so that it's quite easy. I do first,

25
00:01:14,959 --> 00:01:18,679
Speaker 2: as I'm allowed to ask you anything. Are you comfortable

26
00:01:18,720 --> 00:01:19,960
Speaker 2: with that? Oh?

27
00:01:20,040 --> 00:01:21,440
Speaker 3: Yeah, I think it's going to be great.

28
00:01:22,560 --> 00:01:24,400
Speaker 1: You don't have a choice anyway, what do you do?

29
00:01:25,440 --> 00:01:29,360
Speaker 1: What do you do? Don't ask me about And then

30
00:01:29,440 --> 00:01:29,920
Speaker 1: the other one.

31
00:01:29,959 --> 00:01:33,840
Speaker 2: I call it the safe space, which means even if

32
00:01:33,880 --> 00:01:35,880
Speaker 2: I ask you something, you say something stupid.

33
00:01:36,120 --> 00:01:38,600
Speaker 1: I'm not I'm not going to judge you on it.

34
00:01:40,000 --> 00:01:44,720
Speaker 3: Just quietly and you get right. Can you believe he

35
00:01:44,840 --> 00:01:45,920
Speaker 3: said that? Oh my god?

36
00:01:45,959 --> 00:01:47,800
Speaker 2: I mean I had to confess to Ed before we

37
00:01:47,840 --> 00:01:49,840
Speaker 2: went live on this, and I tried to joke at

38
00:01:49,840 --> 00:01:51,800
Speaker 2: a speech this week and it went quite badly.

39
00:01:51,960 --> 00:01:55,160
Speaker 1: So here you go. If you could invite anyone to dinner,

40
00:01:55,160 --> 00:01:55,720
Speaker 1: who would to be?

41
00:01:57,160 --> 00:01:59,400
Speaker 3: I'd actually say, I'm my grandfather. And I'll tell you

42
00:01:59,480 --> 00:02:02,560
Speaker 3: the reason why. I know, Oh you giving me a face, pook.

43
00:02:02,360 --> 00:02:04,280
Speaker 2: I am giving you us. No, I'm giving you the

44
00:02:04,320 --> 00:02:07,640
Speaker 2: soft spo. There is gorgeous face.

45
00:02:07,680 --> 00:02:09,480
Speaker 3: But I'll tell you the reason why. Because when he

46
00:02:09,600 --> 00:02:12,280
Speaker 3: was alive, we didn't get on very well, and you know,

47
00:02:12,440 --> 00:02:15,639
Speaker 3: for I think for a year we didn't actually speak.

48
00:02:16,000 --> 00:02:19,839
Speaker 3: And the reason I'd invite him, and I've actually thought

49
00:02:19,880 --> 00:02:22,160
Speaker 3: about this, It's not some canned answer that I'm giving you.

50
00:02:22,600 --> 00:02:25,280
Speaker 3: But the reason I'd invite him is I'd want to

51
00:02:25,280 --> 00:02:28,160
Speaker 3: make amends. And everyone said, well, the reason you too

52
00:02:28,240 --> 00:02:30,720
Speaker 3: didn't get on is because you were too similar. And

53
00:02:30,760 --> 00:02:33,000
Speaker 3: I bet you if I talked to him today, I'd

54
00:02:33,040 --> 00:02:36,720
Speaker 3: have a lot more respect for him, because at age

55
00:02:37,200 --> 00:02:40,240
Speaker 3: kind of mid thirties, he packed up life in Ireland

56
00:02:40,560 --> 00:02:42,680
Speaker 3: and he brought us three young kids over here to

57
00:02:42,760 --> 00:02:45,960
Speaker 3: New Zealand, and he started a new life and a

58
00:02:46,000 --> 00:02:49,200
Speaker 3: small town called Harwarder, which is in South Tartanaki. And

59
00:02:49,480 --> 00:02:51,960
Speaker 3: I always thought that that takes a lot of gumption.

60
00:02:52,000 --> 00:02:54,240
Speaker 3: And I think that's the beautiful thing about New Zealand

61
00:02:54,560 --> 00:02:57,519
Speaker 3: is that so many of us, our ancestors, have come

62
00:02:57,560 --> 00:03:00,680
Speaker 3: from somewhere else, and all of them came here seeking

63
00:03:00,680 --> 00:03:03,160
Speaker 3: a better life. And I just think it'd be really

64
00:03:03,240 --> 00:03:05,800
Speaker 3: nice to get into my grandfather's head and kind of

65
00:03:06,360 --> 00:03:08,520
Speaker 3: hear that story, which I assume is there.

66
00:03:08,680 --> 00:03:10,920
Speaker 1: How old were you when he passed?

67
00:03:12,200 --> 00:03:14,960
Speaker 3: I would have been fifteen. Yes, you could imagine you

68
00:03:15,040 --> 00:03:15,200
Speaker 3: have a.

69
00:03:15,280 --> 00:03:19,920
Speaker 2: Completely differently a relationship with him now because you're.

70
00:03:19,840 --> 00:03:23,119
Speaker 3: Thirty two about Sune thirty two, thirty.

71
00:03:22,919 --> 00:03:25,280
Speaker 1: One better not age you had.

72
00:03:25,280 --> 00:03:28,000
Speaker 2: I I've got a daughter older than you to see

73
00:03:28,040 --> 00:03:31,120
Speaker 2: you know, so we've set there so that I can

74
00:03:31,160 --> 00:03:31,679
Speaker 2: mother you.

75
00:03:34,120 --> 00:03:35,680
Speaker 3: How good's your chicken? Pop Eye?

76
00:03:35,720 --> 00:03:41,000
Speaker 2: Paula ah smoked fish pie. That's the one that's to

77
00:03:41,080 --> 00:03:42,600
Speaker 2: die for, she says.

78
00:03:42,640 --> 00:03:42,720
Speaker 3: She.

79
00:03:43,280 --> 00:03:45,640
Speaker 2: Okay, what we're going to do it is in the

80
00:03:45,800 --> 00:03:47,160
Speaker 2: first part, we're going to each to know you a

81
00:03:47,200 --> 00:03:49,360
Speaker 2: little bit better, and then we're going to spend a

82
00:03:49,360 --> 00:03:52,240
Speaker 2: bit more time on the second part of the podcast.

83
00:03:52,280 --> 00:03:57,920
Speaker 2: Because everyone always wants to talk property. I of course

84
00:03:58,000 --> 00:04:01,320
Speaker 2: met Bailey's real estate, mainly do commercial I've got to

85
00:04:01,320 --> 00:04:03,600
Speaker 2: say it is more of my jam.

86
00:04:03,960 --> 00:04:05,400
Speaker 1: But I was talking to the.

87
00:04:07,040 --> 00:04:10,120
Speaker 2: Residential guys this morning, so I said to them, I'm

88
00:04:10,120 --> 00:04:14,760
Speaker 2: an expert for the podcast this afternoon. Hey, so you're interesting.

89
00:04:14,800 --> 00:04:17,320
Speaker 2: So you are only thirty one. There you go, and

90
00:04:18,000 --> 00:04:21,560
Speaker 2: you have so you're an economist. So have you studied

91
00:04:21,640 --> 00:04:22,640
Speaker 2: that at university?

92
00:04:23,400 --> 00:04:27,560
Speaker 3: Yeah, so it's quite interesting. I did both economics at

93
00:04:27,720 --> 00:04:31,160
Speaker 3: Auckland University and wake it all. But I also did

94
00:04:31,160 --> 00:04:33,080
Speaker 3: a double major with opera singing.

95
00:04:33,520 --> 00:04:35,840
Speaker 2: I knew the opera and that's why I was trying

96
00:04:35,880 --> 00:04:40,240
Speaker 2: to put the two things together and couldn't quite get there. So,

97
00:04:40,920 --> 00:04:44,200
Speaker 2: I mean, there's so many questions in there, right, So

98
00:04:44,240 --> 00:04:47,200
Speaker 2: how on earth did you know that you could were

99
00:04:47,240 --> 00:04:48,719
Speaker 2: interested and could sing opera?

100
00:04:49,520 --> 00:04:51,600
Speaker 3: Oh well, I got into it when I was probably

101
00:04:51,640 --> 00:04:54,440
Speaker 3: ten years old, and you know, you go along to

102
00:04:54,520 --> 00:04:57,080
Speaker 3: church and you sing along with everybody else, and if

103
00:04:57,080 --> 00:04:59,080
Speaker 3: you're the one who always wants to be the loudest,

104
00:05:00,720 --> 00:05:04,480
Speaker 3: as that was probably me. Then we just got singing

105
00:05:04,560 --> 00:05:07,880
Speaker 3: lessons and it continued for years, you know. But there's

106
00:05:08,000 --> 00:05:08,359
Speaker 3: a lot of.

107
00:05:08,400 --> 00:05:11,719
Speaker 2: Dramas, there's a lot of gramas in there, and opera

108
00:05:11,920 --> 00:05:14,920
Speaker 2: is a particular one with a higher well I would

109
00:05:14,920 --> 00:05:17,760
Speaker 2: have thought higher skill level. So for you, as a

110
00:05:17,839 --> 00:05:19,919
Speaker 2: ten eleven year old to go down that path is

111
00:05:19,960 --> 00:05:21,039
Speaker 2: interesting in itself.

112
00:05:21,720 --> 00:05:23,839
Speaker 3: Well, I just thought it was quite interesting. And I

113
00:05:23,839 --> 00:05:25,920
Speaker 3: think that was kind of the like when you go

114
00:05:26,000 --> 00:05:29,080
Speaker 3: and get singing lessons as a ten eleven year old,

115
00:05:29,360 --> 00:05:33,120
Speaker 3: that's kind of the They start you on really light,

116
00:05:33,240 --> 00:05:36,560
Speaker 3: classical kind of stuff and then you kind of graduate

117
00:05:36,680 --> 00:05:40,160
Speaker 3: into it if you're kind of inclined that way, if

118
00:05:40,160 --> 00:05:42,279
Speaker 3: you can't think, oh, this is kind of cool. And so,

119
00:05:43,279 --> 00:05:46,200
Speaker 3: like many skills, you start with your first lesson and

120
00:05:46,279 --> 00:05:49,560
Speaker 3: you just never stop. And the most amazing thing is

121
00:05:49,600 --> 00:05:51,960
Speaker 3: that I look at people who have actually made opera

122
00:05:52,040 --> 00:05:54,440
Speaker 3: singing their career and there are some amazing people. There's

123
00:05:54,680 --> 00:05:57,240
Speaker 3: a guy called Felipe Manu who was my flatmate when

124
00:05:57,240 --> 00:05:59,080
Speaker 3: we were twenty one years old. He went to the

125
00:05:59,080 --> 00:06:02,839
Speaker 3: same school as me and he was a very normal

126
00:06:02,839 --> 00:06:06,240
Speaker 3: guy from South Auckland and he happened to start seeing

127
00:06:06,279 --> 00:06:09,280
Speaker 3: lessons as well. And in August this year I'm going

128
00:06:09,320 --> 00:06:12,000
Speaker 3: to go see him play the lead at the Sydney

129
00:06:12,040 --> 00:06:14,279
Speaker 3: Opera House. And he's made it his career all around

130
00:06:14,279 --> 00:06:16,480
Speaker 3: the world. And that's a really good example of if

131
00:06:16,480 --> 00:06:19,440
Speaker 3: you've got some talent and you start with your first

132
00:06:19,520 --> 00:06:22,080
Speaker 3: lesson and you never stop, you will get somewhere.

133
00:06:22,920 --> 00:06:25,919
Speaker 2: Yeah. So there's something about dedication, right, and there is

134
00:06:25,960 --> 00:06:28,960
Speaker 2: something to really committing. John Key used to tell me that,

135
00:06:29,080 --> 00:06:32,640
Speaker 2: and he'd a particular his story about squash was his thing,

136
00:06:33,080 --> 00:06:35,360
Speaker 2: and he would say, you know, he had two people

137
00:06:35,360 --> 00:06:38,000
Speaker 2: he knew one was both were talented, but one was

138
00:06:38,040 --> 00:06:39,120
Speaker 2: supremely talented.

139
00:06:39,400 --> 00:06:41,440
Speaker 1: It wasn't that one that went on to the world stage.

140
00:06:41,440 --> 00:06:43,320
Speaker 2: It was the other one because they had hard work

141
00:06:43,360 --> 00:06:44,960
Speaker 2: and dedication behind them.

142
00:06:45,279 --> 00:06:48,080
Speaker 3: Yeah, and not stopping. So you know, I'm not saying

143
00:06:48,080 --> 00:06:50,360
Speaker 3: that I'd be as successful as my friend Felipe if

144
00:06:50,360 --> 00:06:52,440
Speaker 3: I never stopped. But I'm the one who stopped, and

145
00:06:52,480 --> 00:06:54,560
Speaker 3: he's the one who's in at the Sydney Opera House

146
00:06:54,560 --> 00:06:56,560
Speaker 3: because he never stopped going. I think there's a really

147
00:06:56,560 --> 00:06:59,359
Speaker 3: good lesson in that. It wasn't just that he's very talented,

148
00:06:59,480 --> 00:07:01,919
Speaker 3: though he absolutely is, is that he didn't stop.

149
00:07:02,400 --> 00:07:07,240
Speaker 2: Now you you believe that there is a link between

150
00:07:07,400 --> 00:07:10,480
Speaker 2: an analytical brain and being musically talented.

151
00:07:10,880 --> 00:07:12,280
Speaker 1: Don't you talk me through that?

152
00:07:12,840 --> 00:07:15,720
Speaker 3: Well, I personally do think that it's quite amazing. When

153
00:07:15,960 --> 00:07:21,800
Speaker 3: you go and talk to people who are highly analytical,

154
00:07:22,240 --> 00:07:26,680
Speaker 3: often they've got some sort of artistical musical side. You

155
00:07:26,720 --> 00:07:28,280
Speaker 3: see it all the time. I remember when I was

156
00:07:28,320 --> 00:07:30,360
Speaker 3: doing a singing competition when I was very young. I

157
00:07:30,400 --> 00:07:33,000
Speaker 3: would have been fifteen or sixteen years old, and you're

158
00:07:33,160 --> 00:07:35,560
Speaker 3: standing up there and the judges start telling you about

159
00:07:35,560 --> 00:07:38,960
Speaker 3: their lives and some of them have maths degrees, and

160
00:07:39,000 --> 00:07:44,600
Speaker 3: it's just really there's this really strange connection between primarily

161
00:07:44,680 --> 00:07:48,560
Speaker 3: maths and music that you often see with a lot

162
00:07:48,560 --> 00:07:51,160
Speaker 3: of classical musicians. Now it's not all of them, you know,

163
00:07:51,240 --> 00:07:54,560
Speaker 3: some of them are kind of genuine creatives, but there

164
00:07:54,600 --> 00:07:56,720
Speaker 3: is this weird thing that you often see people who

165
00:07:56,760 --> 00:07:58,760
Speaker 3: are quite good at math, are also often quite good.

166
00:07:58,600 --> 00:08:01,400
Speaker 2: At music, and you're on yours, you know, so often

167
00:08:01,600 --> 00:08:05,360
Speaker 2: they've got that absolute They may not have the talent,

168
00:08:05,480 --> 00:08:08,560
Speaker 2: but they've got the commitment to the arts and a

169
00:08:08,640 --> 00:08:10,080
Speaker 2: genuine interest in it, isn't it.

170
00:08:10,120 --> 00:08:11,920
Speaker 1: You know, I couldn't help.

171
00:08:12,000 --> 00:08:13,440
Speaker 2: I was just you know, I was thinking about Sir

172
00:08:13,440 --> 00:08:15,360
Speaker 2: metal Hill, and you know, just so many people like

173
00:08:15,400 --> 00:08:17,640
Speaker 2: that as well that have got and I would put

174
00:08:17,680 --> 00:08:20,640
Speaker 2: them in the sort of analytical brain as well and

175
00:08:20,680 --> 00:08:23,120
Speaker 2: that sort of context, and they've gone down that kind

176
00:08:23,160 --> 00:08:28,200
Speaker 2: of He's very much into the arts and what he does, and.

177
00:08:27,520 --> 00:08:29,640
Speaker 3: I mean so much so he started his own international

178
00:08:29,680 --> 00:08:34,520
Speaker 3: violin competition which is very highly acclaimed as well. But

179
00:08:34,559 --> 00:08:37,040
Speaker 3: you see it a lot with when I worked for

180
00:08:37,160 --> 00:08:40,960
Speaker 3: the Auckland Phnemonia Orchestra for a while and sponsorship and

181
00:08:41,000 --> 00:08:43,679
Speaker 3: you get to meet a lot of people who support

182
00:08:44,040 --> 00:08:46,360
Speaker 3: the arts, and you often find there are a lot

183
00:08:46,360 --> 00:08:49,120
Speaker 3: of accountants, there, a lot of lawyers, and it's people

184
00:08:49,160 --> 00:08:51,520
Speaker 3: who are quite analytical who just like it for some

185
00:08:51,600 --> 00:08:54,000
Speaker 3: reason or the other, or studied music when they were

186
00:08:54,040 --> 00:08:56,880
Speaker 3: kids and have just continued on that love of it.

187
00:08:57,040 --> 00:09:01,520
Speaker 2: M Okay, So talk me through the ad that you

188
00:09:01,559 --> 00:09:04,480
Speaker 2: did because you're you know you you thought you we

189
00:09:04,520 --> 00:09:06,520
Speaker 2: wanted to twig at the ASP or something. Was that it?

190
00:09:06,679 --> 00:09:09,440
Speaker 1: And so you did you literally take out your own ads.

191
00:09:10,120 --> 00:09:11,800
Speaker 3: Yeah, so what I did. This was back in the

192
00:09:11,880 --> 00:09:14,600
Speaker 3: day when Facebook was a little bit more loose. So

193
00:09:14,640 --> 00:09:16,680
Speaker 3: I was working at the Orchestra and I saw a

194
00:09:16,760 --> 00:09:19,160
Speaker 3: job going and Paula, it's so embarrassing when I tell

195
00:09:19,200 --> 00:09:22,679
Speaker 3: this story because the ending is so obvious. But I

196
00:09:22,720 --> 00:09:25,880
Speaker 3: saw a job going for like sponsorship manager at ASB,

197
00:09:26,160 --> 00:09:28,400
Speaker 3: and I thought, that sounds like a great job. I'd

198
00:09:28,440 --> 00:09:30,679
Speaker 3: like to go and do that. Only issue is they

199
00:09:30,720 --> 00:09:34,720
Speaker 3: wanted somebody with seven plus years experience and I had

200
00:09:34,760 --> 00:09:37,000
Speaker 3: one and a half. And I thought, well, I'm not

201
00:09:37,040 --> 00:09:39,800
Speaker 3: going to let that stop me because I once saw

202
00:09:39,920 --> 00:09:41,960
Speaker 3: I once went to a speech by John Key where

203
00:09:41,960 --> 00:09:44,720
Speaker 3: he talked about that you can't you've got to get

204
00:09:44,760 --> 00:09:47,680
Speaker 3: yourself in the room. You've got to make things happen. Okay, fine,

205
00:09:47,880 --> 00:09:50,000
Speaker 3: I'm going to make it happen. And so I thought, well,

206
00:09:50,040 --> 00:09:52,080
Speaker 3: how do I make myself stand out because I've got

207
00:09:52,080 --> 00:09:55,000
Speaker 3: no experience. But I think I'm okay, So we'll just

208
00:09:55,040 --> 00:09:56,880
Speaker 3: see how we go. And that was back in the

209
00:09:57,000 --> 00:10:01,360
Speaker 3: day where you could target on Facebook people who worked

210
00:10:01,360 --> 00:10:04,240
Speaker 3: for a specific company. So I built a website, a

211
00:10:04,400 --> 00:10:08,000
Speaker 3: very basic one talking all about why ASB should hire me.

212
00:10:08,160 --> 00:10:09,920
Speaker 3: And I thought, okay, well that's fine, but how do

213
00:10:10,000 --> 00:10:14,240
Speaker 3: I get this in front of the HR managers? And

214
00:10:14,280 --> 00:10:18,200
Speaker 3: so I wrote this website page about why you, as

215
00:10:18,320 --> 00:10:23,040
Speaker 3: an ASB employee employee, should recommend me to the HR

216
00:10:23,160 --> 00:10:25,200
Speaker 3: department and you should go down the hall to the

217
00:10:25,320 --> 00:10:28,960
Speaker 3: HR department and say, this guy's pretty interesting, he'd be

218
00:10:28,960 --> 00:10:32,200
Speaker 3: a great colleague, give him an interview. And so then

219
00:10:32,240 --> 00:10:34,600
Speaker 3: I spent I probably spent about twenty seven dollars and

220
00:10:34,640 --> 00:10:40,400
Speaker 3: fifty cents running these Facebook ads targeting ASB employees living

221
00:10:40,400 --> 00:10:44,120
Speaker 3: in Auckland. And you know, it got backed up, or

222
00:10:44,120 --> 00:10:45,920
Speaker 3: it got noticed by a couple of people in their

223
00:10:45,960 --> 00:10:48,720
Speaker 3: marketing team being like, well this is very very interesting.

224
00:10:49,200 --> 00:10:53,080
Speaker 3: I got an interview, didn't get the job, but that's

225
00:10:53,120 --> 00:10:55,120
Speaker 3: okay because they are very nice about it. And I

226
00:10:55,160 --> 00:10:57,200
Speaker 3: got I got a bit of press, and I got

227
00:10:57,280 --> 00:10:59,760
Speaker 3: job offers from quite a few different companies. So that's

228
00:10:59,760 --> 00:11:02,679
Speaker 3: how I kind of progressed within my career. But I

229
00:11:02,720 --> 00:11:05,640
Speaker 3: think what that was all about is graduating with some

230
00:11:05,920 --> 00:11:09,720
Speaker 3: economics qualifications and some music qualifications. I think certainly the

231
00:11:09,720 --> 00:11:12,800
Speaker 3: start of my career is a bit jumbled because nobody

232
00:11:12,840 --> 00:11:15,200
Speaker 3: really knew what to do with me, and so I

233
00:11:15,280 --> 00:11:17,959
Speaker 3: kind of had to find my own way, and eventually

234
00:11:17,960 --> 00:11:20,120
Speaker 3: I stumbled into what I'm doing now. I've been doing

235
00:11:20,120 --> 00:11:22,480
Speaker 3: it for the last five years, and the amazing thing

236
00:11:22,679 --> 00:11:27,520
Speaker 3: is those skills have come in handy, just simply because

237
00:11:27,559 --> 00:11:30,120
Speaker 3: you know, we've done the daily podcast for the last

238
00:11:30,160 --> 00:11:33,040
Speaker 3: five years. It's a lot of presenting skills and I

239
00:11:33,040 --> 00:11:35,160
Speaker 3: didn't know it at the time, but the opera singing

240
00:11:35,200 --> 00:11:37,080
Speaker 3: helped me do what I'm doing today.

241
00:11:38,240 --> 00:11:39,880
Speaker 1: So tell us what you're doing today.

242
00:11:40,080 --> 00:11:41,920
Speaker 2: Just give me the app shot of the company that

243
00:11:41,960 --> 00:11:43,160
Speaker 2: you're worth and what your role is.

244
00:11:43,880 --> 00:11:46,079
Speaker 3: Yeah. So I'm the economist at Opu's Partners, and I

245
00:11:46,400 --> 00:11:49,120
Speaker 3: was really lucky i joined. I was when we were

246
00:11:49,160 --> 00:11:51,680
Speaker 3: only fifteen people as the company, and over the last

247
00:11:51,679 --> 00:11:53,679
Speaker 3: five years, I've just had my fifth anniversary here, we've

248
00:11:53,720 --> 00:11:56,840
Speaker 3: grown it to a team of about ninety people. And

249
00:11:56,880 --> 00:11:58,760
Speaker 3: because of that growth and because I was part of it,

250
00:11:58,920 --> 00:12:01,120
Speaker 3: I was really lucky the own the business decided to

251
00:12:01,120 --> 00:12:04,360
Speaker 3: cut me in as a business partner, and so I'm

252
00:12:04,400 --> 00:12:06,719
Speaker 3: really lucky because I was just working on some like

253
00:12:06,880 --> 00:12:09,440
Speaker 3: techtop content before I came on to talk to you,

254
00:12:09,440 --> 00:12:10,839
Speaker 3: you know, and I was reflecting that when I was

255
00:12:10,880 --> 00:12:13,000
Speaker 3: twenty four, I was in a lot of debt. I

256
00:12:13,000 --> 00:12:15,720
Speaker 3: had a lot of credit card debt, well over fifteen grand,

257
00:12:16,360 --> 00:12:18,160
Speaker 3: and just to put that into context, because I wasn't

258
00:12:18,160 --> 00:12:20,199
Speaker 3: earning a lot at the time, I would have had

259
00:12:20,200 --> 00:12:22,800
Speaker 3: to work from the first of January to about the

260
00:12:22,880 --> 00:12:26,720
Speaker 3: sixth of June to pay off that debt. Now that's

261
00:12:26,840 --> 00:12:29,640
Speaker 3: just working, paying tax and paying off debt, not paying

262
00:12:29,679 --> 00:12:32,600
Speaker 3: my rent, not paying for groceries or anything like that.

263
00:12:33,000 --> 00:12:35,880
Speaker 3: It's my own fault. But I got myself into the

264
00:12:35,880 --> 00:12:41,120
Speaker 3: wrong situation, and from being in that situation standing in

265
00:12:41,160 --> 00:12:42,800
Speaker 3: the shower thinking how did I let my life become

266
00:12:42,840 --> 00:12:45,199
Speaker 3: like this when I was twenty four to sitting here

267
00:12:45,240 --> 00:12:48,120
Speaker 3: at thirty one, seven years later. You know, I don't

268
00:12:48,160 --> 00:12:50,280
Speaker 3: feel like I've made it yet. I don't think I'm

269
00:12:50,320 --> 00:12:52,920
Speaker 3: some guru, but I think that, you know, twenty four

270
00:12:52,960 --> 00:12:55,319
Speaker 3: year old me would be pretty proud of the progress

271
00:12:55,320 --> 00:12:56,000
Speaker 3: that's been made.

272
00:12:56,200 --> 00:12:58,880
Speaker 2: Oh that's extraordinary, and I think it's a big story

273
00:12:58,880 --> 00:13:00,920
Speaker 2: to tell as well. End I think that you're going

274
00:13:00,960 --> 00:13:04,280
Speaker 2: to have some very good advice for us. So let's

275
00:13:04,480 --> 00:13:06,840
Speaker 2: take a quick break and then you are going to

276
00:13:06,840 --> 00:13:09,200
Speaker 2: get all the advice you need around the property market

277
00:13:09,320 --> 00:13:10,719
Speaker 2: and investing in.

278
00:13:10,760 --> 00:13:25,160
Speaker 1: Property with Ed and me. Thanks for coming back in now.

279
00:13:25,320 --> 00:13:28,680
Speaker 2: You are a big investor and believer in property investment,

280
00:13:29,040 --> 00:13:32,600
Speaker 2: so let's start there. Why is investing in property such

281
00:13:32,600 --> 00:13:33,840
Speaker 2: a good idea in your opinion?

282
00:13:35,600 --> 00:13:39,080
Speaker 3: I think the main reason is the only thing that

283
00:13:39,120 --> 00:13:41,360
Speaker 3: makes property special is the fact that you can borrow

284
00:13:41,480 --> 00:13:44,880
Speaker 3: money against it. Right, So a lot of Kiwis they're

285
00:13:44,880 --> 00:13:46,760
Speaker 3: out there, they want to grow their wealth, but they

286
00:13:46,880 --> 00:13:49,080
Speaker 3: might not have a lot of money spare that they

287
00:13:49,080 --> 00:13:52,600
Speaker 3: can put into shares, Keiwi, saver, term deposits, all of

288
00:13:52,640 --> 00:13:55,000
Speaker 3: that kind of thing. But what a lot of people

289
00:13:55,040 --> 00:13:58,000
Speaker 3: realize don't realize, is that you can buy a house

290
00:13:58,080 --> 00:14:00,480
Speaker 3: without having a lot of cash. I just walk you

291
00:14:00,559 --> 00:14:04,320
Speaker 3: through my situation. Bought a house when I was twenty six,

292
00:14:04,920 --> 00:14:07,880
Speaker 3: it went up in value, paid down some debt, and

293
00:14:07,920 --> 00:14:09,480
Speaker 3: then I thought, okay, well I want to go and

294
00:14:09,520 --> 00:14:12,000
Speaker 3: buy another house. Well, I didn't have the deposit, I

295
00:14:12,040 --> 00:14:14,440
Speaker 3: hadn't saved it up, But because my house had gone

296
00:14:14,480 --> 00:14:17,680
Speaker 3: up in value, I borrow some money against that house

297
00:14:17,920 --> 00:14:20,280
Speaker 3: as the deposit, and I take that money that I

298
00:14:20,440 --> 00:14:22,920
Speaker 3: borrowed from the bank, and I go put that down

299
00:14:22,960 --> 00:14:25,800
Speaker 3: as the deposit on another investment property, and I borrow

300
00:14:25,840 --> 00:14:28,080
Speaker 3: some money from the bank to purchase that, and I

301
00:14:28,120 --> 00:14:31,520
Speaker 3: was able to buy my I guess second investment property

302
00:14:31,800 --> 00:14:33,840
Speaker 3: with no cash. Now we call that the no cash

303
00:14:33,880 --> 00:14:36,760
Speaker 3: needed method. It is a pretty classic way that a

304
00:14:36,760 --> 00:14:39,200
Speaker 3: lot of care we start investing in property. Now, if

305
00:14:39,240 --> 00:14:41,560
Speaker 3: you've invested in property before, you know this, and it

306
00:14:41,560 --> 00:14:44,880
Speaker 3: sounds really basic. If you've never invested in property before,

307
00:14:45,080 --> 00:14:48,360
Speaker 3: it can be pretty mind blowing. So I often say

308
00:14:48,400 --> 00:14:52,040
Speaker 3: to first time investors, you're effectively using your house or

309
00:14:52,120 --> 00:14:55,000
Speaker 3: houses to go and buy more houses, and then as

310
00:14:55,040 --> 00:14:57,080
Speaker 3: those increase in value or you pay off some of

311
00:14:57,120 --> 00:14:58,800
Speaker 3: the debt, that's where you start to earn more of

312
00:14:58,840 --> 00:15:01,640
Speaker 3: a return. But it's the idea of being able to

313
00:15:01,680 --> 00:15:05,480
Speaker 3: borrow money against it that's what makes property really special.

314
00:15:05,760 --> 00:15:07,880
Speaker 3: So if I think about that specific property that I

315
00:15:07,960 --> 00:15:10,520
Speaker 3: bought with no cash, if it goes up in value

316
00:15:10,560 --> 00:15:14,120
Speaker 3: by ten or twenty k, which is pretty reasonable on

317
00:15:14,160 --> 00:15:17,880
Speaker 3: an average year, then that ten twenty k doesn't go

318
00:15:17,920 --> 00:15:20,040
Speaker 3: to the bank. I get to keep that even though

319
00:15:20,080 --> 00:15:21,840
Speaker 3: I borrowed all of the money to go and purchase

320
00:15:21,840 --> 00:15:24,320
Speaker 3: the property. But the thing that I'd often tell you, Paul,

321
00:15:24,360 --> 00:15:28,000
Speaker 3: is we often joke that if you could borrow money

322
00:15:28,120 --> 00:15:32,960
Speaker 3: against watermelons, and watermelons were ensurable, and watermelons went up

323
00:15:33,000 --> 00:15:36,120
Speaker 3: in value and you could earn a rental income in

324
00:15:36,200 --> 00:15:38,880
Speaker 3: order to be able to pay that mortgage, I'd be

325
00:15:38,920 --> 00:15:41,240
Speaker 3: recommending that we all go and vest in tropical fruit.

326
00:15:41,440 --> 00:15:44,240
Speaker 3: It's not that I like cowses, It's that I like

327
00:15:44,440 --> 00:15:46,320
Speaker 3: that you're able to borrow money against it, you can

328
00:15:46,400 --> 00:15:48,680
Speaker 3: ensure it, you can earn a rental income to pay

329
00:15:48,720 --> 00:15:51,880
Speaker 3: most of the costs. Doesn't You're not always able to

330
00:15:51,920 --> 00:15:54,200
Speaker 3: cover all of the costs with the rental income, especially

331
00:15:54,240 --> 00:15:56,280
Speaker 3: when it interest rates are high. But those are the

332
00:15:56,280 --> 00:15:59,120
Speaker 3: factors that I like about property.

333
00:15:59,200 --> 00:16:02,600
Speaker 2: And then because you've got four properties, now did I

334
00:16:02,640 --> 00:16:02,960
Speaker 2: read that?

335
00:16:03,040 --> 00:16:03,280
Speaker 3: Yeah?

336
00:16:03,400 --> 00:16:06,320
Speaker 2: Yeah, Now, so how do you How hard do you

337
00:16:06,360 --> 00:16:09,360
Speaker 2: think it is though for those that are starting out

338
00:16:09,360 --> 00:16:12,400
Speaker 2: for that first home buyer, if you like, we're constantly

339
00:16:12,480 --> 00:16:15,400
Speaker 2: hearing how hard it is to raise that hundred thousand

340
00:16:15,400 --> 00:16:20,080
Speaker 2: dollars as the deposit. I know for me, and this

341
00:16:20,320 --> 00:16:24,680
Speaker 2: was many years ago, but I didn't borrow money off

342
00:16:24,680 --> 00:16:27,360
Speaker 2: my parents, but I convinced them to put their house

343
00:16:27,440 --> 00:16:31,200
Speaker 2: as a caveat against mine, and I had some deposit obviously,

344
00:16:31,600 --> 00:16:34,120
Speaker 2: and that's how I actually got into the market. And

345
00:16:34,160 --> 00:16:36,040
Speaker 2: within three years I was able or two years it

346
00:16:36,160 --> 00:16:37,800
Speaker 2: was I was able to get them off, but that's

347
00:16:38,040 --> 00:16:40,680
Speaker 2: they were prepared to do that. But it is still

348
00:16:40,720 --> 00:16:42,600
Speaker 2: hard to get into that first time, right.

349
00:16:43,360 --> 00:16:46,480
Speaker 3: It certainly can be. And what I'd kind of say,

350
00:16:46,480 --> 00:16:48,120
Speaker 3: because I was on used talk set B the other

351
00:16:48,200 --> 00:16:51,440
Speaker 3: day talking about this and the government's changed the first

352
00:16:51,440 --> 00:16:54,800
Speaker 3: time grants or effectively gotten rid of them now, and

353
00:16:54,920 --> 00:16:57,760
Speaker 3: we were talking to people calling and saying, yeah, I

354
00:16:57,800 --> 00:16:59,400
Speaker 3: was about to use it from the first time, and

355
00:16:59,440 --> 00:17:01,680
Speaker 3: it might set me back a year or two. And

356
00:17:01,800 --> 00:17:03,320
Speaker 3: the thing I was saying to a lot of them

357
00:17:03,480 --> 00:17:06,920
Speaker 3: is just remember that the average age that somebody purchases

358
00:17:06,960 --> 00:17:09,840
Speaker 3: their first home in New Zealand is thirty seven years old.

359
00:17:10,280 --> 00:17:12,679
Speaker 3: And I think we sometimes get into this mindset that

360
00:17:12,680 --> 00:17:15,200
Speaker 3: if you haven't done it by twenty six, then you're behind.

361
00:17:15,560 --> 00:17:18,360
Speaker 3: No no, no, no, no no no. Only fifty percent

362
00:17:18,480 --> 00:17:21,639
Speaker 3: of first home buyers purchase before they are thirty seven.

363
00:17:22,160 --> 00:17:25,040
Speaker 3: Fifty percent of first home buyers purchase after thirty seven.

364
00:17:25,200 --> 00:17:26,960
Speaker 3: But one thing that I'd also like to change the

365
00:17:27,040 --> 00:17:31,200
Speaker 3: narrative around is just about you know, how many people

366
00:17:31,280 --> 00:17:33,400
Speaker 3: are purchasing their first homes. A lot of people don't

367
00:17:33,400 --> 00:17:36,920
Speaker 3: realize that in twenty twenty four, first home buyers are

368
00:17:36,920 --> 00:17:39,239
Speaker 3: making up a bigger chunk of the market than they

369
00:17:39,280 --> 00:17:42,639
Speaker 3: almost ever have. So in a standard year, somewhere between

370
00:17:42,680 --> 00:17:45,480
Speaker 3: eighteen to twenty percent of the market of the houses

371
00:17:45,520 --> 00:17:48,000
Speaker 3: bought are sold to first home buyers. At the moment,

372
00:17:48,000 --> 00:17:50,480
Speaker 3: we're well above twenty percent. I think we hit twenty

373
00:17:50,480 --> 00:17:53,960
Speaker 3: five percent recently. So it's a really good time for

374
00:17:54,040 --> 00:17:57,199
Speaker 3: first time buyers right now. So that tells me that

375
00:17:57,280 --> 00:17:58,880
Speaker 3: a lot of key is out there. They're not letting

376
00:17:58,960 --> 00:18:01,879
Speaker 3: high house prices or what they're reading in the media

377
00:18:02,119 --> 00:18:03,920
Speaker 3: get in the way of their first home dreams.

378
00:18:04,200 --> 00:18:07,440
Speaker 2: But do you think that's because of the market, And

379
00:18:07,960 --> 00:18:10,920
Speaker 2: you know, what you are seeing is a smaller market

380
00:18:11,000 --> 00:18:14,640
Speaker 2: right now, not as many people buying, and as a consequence,

381
00:18:14,920 --> 00:18:17,919
Speaker 2: you could have that proportion slightly distorted.

382
00:18:19,000 --> 00:18:22,080
Speaker 3: Oh well, that's certainly a part of it. That it's

383
00:18:22,080 --> 00:18:24,600
Speaker 3: a quite a market. Property prices are down and first

384
00:18:24,600 --> 00:18:28,320
Speaker 3: time buyers are therefore taking advantage of the market that's there.

385
00:18:28,920 --> 00:18:31,760
Speaker 3: But you I always think as an economist, you can

386
00:18:31,800 --> 00:18:35,560
Speaker 3: always find reasons to justify why, oh, that number looks good,

387
00:18:35,720 --> 00:18:38,240
Speaker 3: but actually no, it's not really good, or that number

388
00:18:38,280 --> 00:18:40,760
Speaker 3: looks bad, but actually it's not that bad. Like there

389
00:18:40,760 --> 00:18:43,000
Speaker 3: are always reasons for this. But the counter to that

390
00:18:43,640 --> 00:18:48,280
Speaker 3: kind of view as well, infrastrates are really high usually

391
00:18:48,320 --> 00:18:50,560
Speaker 3: that could scare a lot of first home buyers off.

392
00:18:51,160 --> 00:18:54,120
Speaker 3: House prices are still high compared to what they've been

393
00:18:54,160 --> 00:18:56,639
Speaker 3: over the last ten years, but first time buyers are

394
00:18:56,640 --> 00:18:59,159
Speaker 3: still being active and out there purchasing.

395
00:18:59,240 --> 00:19:02,480
Speaker 2: Yeah, which has been testing right, because it is such

396
00:19:02,520 --> 00:19:06,159
Speaker 2: an opportunity to build wealth to give stability. Quite frankly

397
00:19:06,200 --> 00:19:09,119
Speaker 2: as well, I did quite a lot of study in

398
00:19:09,160 --> 00:19:11,560
Speaker 2: the States on that kind of asset building for the

399
00:19:11,600 --> 00:19:14,640
Speaker 2: poor and the difference it makes through the generations and

400
00:19:14,680 --> 00:19:18,359
Speaker 2: that sense of self worth and the ability to take risks.

401
00:19:18,680 --> 00:19:21,440
Speaker 2: But it comes with risks, right, you know, And there's

402
00:19:21,480 --> 00:19:22,239
Speaker 2: no ways about it.

403
00:19:22,119 --> 00:19:26,560
Speaker 1: It is understanding the market it is. You know, we

404
00:19:26,600 --> 00:19:28,040
Speaker 1: had someone the.

405
00:19:28,000 --> 00:19:30,119
Speaker 2: Other day who had bought a house that didn't have

406
00:19:30,160 --> 00:19:32,879
Speaker 2: full code of compliance because and it was when the

407
00:19:32,880 --> 00:19:35,560
Speaker 2: banks kind of couldn't lend enough money, you know, to

408
00:19:35,640 --> 00:19:39,639
Speaker 2: save themselves and so, and they are now being penalized

409
00:19:39,680 --> 00:19:41,159
Speaker 2: for it, you know what I mean, Like it's getting

410
00:19:41,200 --> 00:19:41,960
Speaker 2: really really.

411
00:19:41,800 --> 00:19:43,200
Speaker 1: Tough for them.

412
00:19:43,640 --> 00:19:45,880
Speaker 2: So how do you think people can get themselves better

413
00:19:46,040 --> 00:19:48,119
Speaker 2: edicated if they want to get into that property market,

414
00:19:48,160 --> 00:19:49,600
Speaker 2: particularly for an investment.

415
00:19:50,359 --> 00:19:52,000
Speaker 3: I think the big thing is a lot of people

416
00:19:52,520 --> 00:19:56,720
Speaker 3: educate themselves through hearsay. So we hear a lot from

417
00:19:56,760 --> 00:20:00,200
Speaker 3: people who are close to us and maybe own our

418
00:20:00,240 --> 00:20:03,760
Speaker 3: property or maybe one or two properties, and we take

419
00:20:03,880 --> 00:20:06,479
Speaker 3: a lot of advice from them because we trust them. Oh,

420
00:20:06,640 --> 00:20:08,359
Speaker 3: they've bought a property before, so they must know what

421
00:20:08,359 --> 00:20:11,040
Speaker 3: they're doing. Often they don't know what they're doing actually,

422
00:20:11,240 --> 00:20:14,400
Speaker 3: So if the question is how do we educate ourselves?

423
00:20:14,640 --> 00:20:18,760
Speaker 3: There is some fantastic resources out there for people who

424
00:20:18,800 --> 00:20:21,400
Speaker 3: want to learn about property. And it's not just our podcast,

425
00:20:21,440 --> 00:20:24,440
Speaker 3: you know. Of course, we've done about seventeen hundred episodes

426
00:20:25,080 --> 00:20:27,399
Speaker 3: since we've done it almost every day for now on

427
00:20:27,560 --> 00:20:30,680
Speaker 3: five years, So there's a lot of stuff out there.

428
00:20:31,960 --> 00:20:34,640
Speaker 3: But the other thing that some people could consider it's

429
00:20:34,640 --> 00:20:38,600
Speaker 3: not just podcasts, but the Property Investor magazine is pretty

430
00:20:38,600 --> 00:20:40,960
Speaker 3: good as well. Full disclosure my company owns you see

431
00:20:40,960 --> 00:20:43,280
Speaker 3: on Property Investor magazine. But there are a lot of

432
00:20:43,320 --> 00:20:45,840
Speaker 3: resources out there if people want to learn. I think

433
00:20:45,880 --> 00:20:47,679
Speaker 3: the main thing just to be aware of is not

434
00:20:47,760 --> 00:20:50,359
Speaker 3: always to think that our parents or our friends know

435
00:20:50,440 --> 00:20:51,440
Speaker 3: everything about property.

436
00:20:51,520 --> 00:20:57,240
Speaker 2: Yeah that's bloody good advice. Well you're here, dresser, you know, yeah, yeah, yeah,

437
00:20:57,440 --> 00:20:59,959
Speaker 2: you sitting there a while and everyone wants to talk property,

438
00:21:00,160 --> 00:21:00,399
Speaker 2: you know.

439
00:21:01,040 --> 00:21:05,280
Speaker 3: Yeah. And what I've found a lot, Paula, is that

440
00:21:05,320 --> 00:21:08,239
Speaker 3: there are a lot of things that people repeat and

441
00:21:08,680 --> 00:21:11,080
Speaker 3: assume are true. And I'll give you a really good

442
00:21:11,119 --> 00:21:14,800
Speaker 3: example of this. So people always ask what goes up

443
00:21:14,840 --> 00:21:18,760
Speaker 3: in value the fastest, A house, a townhouse, or an apartment,

444
00:21:19,160 --> 00:21:22,119
Speaker 3: And usually what people say is, well, the money's in

445
00:21:22,200 --> 00:21:25,240
Speaker 3: the land, and so a house must go up fastest,

446
00:21:25,600 --> 00:21:28,720
Speaker 3: then a townhouse, and then an apartment, and it's kind

447
00:21:28,720 --> 00:21:31,760
Speaker 3: of in that order. One two three. So you actually

448
00:21:31,760 --> 00:21:33,680
Speaker 3: go out and you look out look at the data,

449
00:21:33,960 --> 00:21:36,320
Speaker 3: and what you see is that, yeah, apartments go up

450
00:21:36,320 --> 00:21:39,480
Speaker 3: and value way slower than a house or a townhouse.

451
00:21:39,880 --> 00:21:42,000
Speaker 3: Then you go and you look at the data and say, well,

452
00:21:42,000 --> 00:21:44,160
Speaker 3: what about a house versus a townhouse. You'd be like, well,

453
00:21:44,359 --> 00:21:46,800
Speaker 3: surely a house has way more land, and so should

454
00:21:46,840 --> 00:21:49,560
Speaker 3: go up and value faster. And it's true they go

455
00:21:49,680 --> 00:21:52,719
Speaker 3: up a little bit faster, but the difference is so

456
00:21:52,840 --> 00:21:55,919
Speaker 3: much more marginal than many Kiwis would think. And so

457
00:21:56,359 --> 00:21:59,119
Speaker 3: I think the lesson in there is not that everyone

458
00:21:59,119 --> 00:22:00,960
Speaker 3: should go buy a town That's not the lesson at all.

459
00:22:01,000 --> 00:22:04,480
Speaker 3: The less it is sometimes we hear things repeated, but

460
00:22:04,560 --> 00:22:08,199
Speaker 3: actually that's not necessarily true. Another example is with the

461
00:22:08,280 --> 00:22:10,679
Speaker 3: monies in the land, and I recently wrote a column

462
00:22:10,680 --> 00:22:14,280
Speaker 3: for One roof actually looking at that, and in some

463
00:22:14,400 --> 00:22:17,560
Speaker 3: cases we're actually found that just because a house has

464
00:22:17,640 --> 00:22:20,359
Speaker 3: more land, that doesn't make it go up and value

465
00:22:20,600 --> 00:22:23,640
Speaker 3: the fastest or faster might give you a few more

466
00:22:23,640 --> 00:22:26,880
Speaker 3: options if you want to develop it, but actually it's

467
00:22:26,960 --> 00:22:29,840
Speaker 3: kind of the mid sized sections that the average key

468
00:22:29,920 --> 00:22:32,399
Speaker 3: we can afford and the average key we can buy.

469
00:22:32,640 --> 00:22:35,080
Speaker 3: That's what goes up in value the fastest. Wow.

470
00:22:35,400 --> 00:22:38,040
Speaker 2: And I was going to ask, which kind of leads

471
00:22:38,080 --> 00:22:41,760
Speaker 2: from that, is about maintenance as well? Or do you

472
00:22:41,800 --> 00:22:47,240
Speaker 2: buy you know, because a townhouse in an apartment predominantly

473
00:22:47,280 --> 00:22:50,280
Speaker 2: have less maintenance, right, And I don't think people, particularly

474
00:22:50,320 --> 00:22:53,040
Speaker 2: they're buying an investment that's going to be rented, really

475
00:22:53,080 --> 00:22:56,480
Speaker 2: give consideration. I've just spent six thousand dollars on new

476
00:22:56,480 --> 00:23:00,960
Speaker 2: heat pumps literally went in today, you know, into one

477
00:23:00,960 --> 00:23:03,280
Speaker 2: of my properties that just needed to be done right.

478
00:23:03,640 --> 00:23:06,640
Speaker 2: But you could spend that kind of money quite regularly,

479
00:23:07,440 --> 00:23:10,479
Speaker 2: quite easily if you want to keep your house up

480
00:23:10,520 --> 00:23:12,399
Speaker 2: to a standard. So how much do you kind of

481
00:23:12,400 --> 00:23:15,600
Speaker 2: do you budget a percentage of your income or the

482
00:23:15,680 --> 00:23:17,239
Speaker 2: home or how do you manage it?

483
00:23:17,920 --> 00:23:20,080
Speaker 3: So the basic way that we usually do is say,

484
00:23:20,160 --> 00:23:22,600
Speaker 3: let's say you buy a new built property, so brand new,

485
00:23:22,640 --> 00:23:24,680
Speaker 3: you're probably going to get away with five hundred dollars

486
00:23:24,720 --> 00:23:26,920
Speaker 3: a year, and in fact, in the first couple of years,

487
00:23:26,920 --> 00:23:28,439
Speaker 3: you're probably not even going to need to spend that.

488
00:23:28,480 --> 00:23:30,800
Speaker 3: It's going to be really cheap. Once yet to that

489
00:23:30,880 --> 00:23:34,400
Speaker 3: kind of ten to twenty years old, maybe thirty years old,

490
00:23:34,520 --> 00:23:36,640
Speaker 3: you start to say about one thousand bucks a year

491
00:23:36,680 --> 00:23:38,280
Speaker 3: is what you're going to need a budget for maintenance.

492
00:23:38,680 --> 00:23:41,119
Speaker 3: Once you get up over that thirty plus years old,

493
00:23:41,280 --> 00:23:43,240
Speaker 3: that's when we say kind of three grand a year

494
00:23:43,320 --> 00:23:46,960
Speaker 3: is what you need to budget ballpark, but it's quite lumpy,

495
00:23:47,119 --> 00:23:48,760
Speaker 3: So what I mean by that is it might cost

496
00:23:48,800 --> 00:23:51,280
Speaker 3: you a grand one year, then oh no, that hot

497
00:23:51,320 --> 00:23:53,480
Speaker 3: water cylinder that's gone that's going to cost another eight

498
00:23:53,560 --> 00:23:56,120
Speaker 3: grand to replace. And then oh no, wait, now we've

499
00:23:56,119 --> 00:23:57,959
Speaker 3: got a roof that needs to be replaced because we've

500
00:23:57,960 --> 00:23:59,840
Speaker 3: brought something that's fifty or sixty years old that's going

501
00:23:59,880 --> 00:24:01,560
Speaker 3: to be twenty to thirty grand or whatever it happens

502
00:24:01,560 --> 00:24:03,760
Speaker 3: to be. So I kind of do it on an

503
00:24:03,840 --> 00:24:06,800
Speaker 3: annual basis, and it's kind of the older the property,

504
00:24:06,960 --> 00:24:09,199
Speaker 3: the more maintenance. But just be aware that it's going

505
00:24:09,240 --> 00:24:11,160
Speaker 3: to be a bit lumpy. And that's a really good

506
00:24:11,160 --> 00:24:14,400
Speaker 3: point that you bring up with maintenance, because I wouldn't

507
00:24:14,400 --> 00:24:16,840
Speaker 3: do it as a percentage of the property. And the

508
00:24:16,880 --> 00:24:20,240
Speaker 3: reason is that sometimes, especially in small towns like out

509
00:24:20,280 --> 00:24:22,960
Speaker 3: on the west coast of the South Island, you've got

510
00:24:23,000 --> 00:24:25,600
Speaker 3: a lot of cheap houses out there, and actually they

511
00:24:25,600 --> 00:24:27,439
Speaker 3: get a really good rental yield, so they get a

512
00:24:27,440 --> 00:24:29,439
Speaker 3: lot of rent per week compared to the value of

513
00:24:29,480 --> 00:24:32,080
Speaker 3: the property, and a lot of investors look at that

514
00:24:32,200 --> 00:24:34,440
Speaker 3: and say, oh, isn't that wonderful it's got such a

515
00:24:34,520 --> 00:24:38,200
Speaker 3: high rental yield. But the issue is that to replace

516
00:24:38,240 --> 00:24:40,800
Speaker 3: a roof or a hot water cylinder kind of doesn't

517
00:24:40,840 --> 00:24:43,160
Speaker 3: matter what the value of the property is. It's basically

518
00:24:44,040 --> 00:24:46,879
Speaker 3: pretty much the same all around the country. And so

519
00:24:47,000 --> 00:24:49,119
Speaker 3: one of the issues is if you just buy a

520
00:24:49,200 --> 00:24:52,160
Speaker 3: cheap house that in a small part of the country,

521
00:24:52,520 --> 00:24:56,280
Speaker 3: when you do need to replace the hot water cylinder

522
00:24:56,400 --> 00:24:59,040
Speaker 3: or a heat pump or the roof, that makes up

523
00:24:59,080 --> 00:25:02,840
Speaker 3: a huge personage of the rent that you actually collect,

524
00:25:03,080 --> 00:25:04,600
Speaker 3: and so sometimes it can be a bit of a

525
00:25:04,600 --> 00:25:05,400
Speaker 3: false economy.

526
00:25:05,560 --> 00:25:09,679
Speaker 2: Yeah, can you OK, I've got a few kind of questions,

527
00:25:09,680 --> 00:25:12,040
Speaker 2: one which you just led into quite nicely as well,

528
00:25:12,200 --> 00:25:15,199
Speaker 2: which was would you buy an investment property out of

529
00:25:15,240 --> 00:25:17,280
Speaker 2: the town or the city that you live in?

530
00:25:18,600 --> 00:25:20,280
Speaker 1: This says me, confessing that I have.

531
00:25:20,440 --> 00:25:23,920
Speaker 2: You know, so I've just recently, well recently in the

532
00:25:24,000 --> 00:25:27,320
Speaker 2: last twelve months, purchased something and I looked carefully at

533
00:25:27,320 --> 00:25:29,520
Speaker 2: the yield, which I was thinking you should probably explain

534
00:25:29,560 --> 00:25:33,160
Speaker 2: to some people, and really saw the benefits in kind

535
00:25:33,200 --> 00:25:35,200
Speaker 2: of getting out of the Auckland market, to be honest,

536
00:25:35,200 --> 00:25:37,520
Speaker 2: and spreading my investment more around the country.

537
00:25:38,160 --> 00:25:40,280
Speaker 3: Yeah. Big fan of that, Paula. And I'll see the

538
00:25:40,320 --> 00:25:43,880
Speaker 3: reason why. So a lot of people look at like

539
00:25:44,320 --> 00:25:47,320
Speaker 3: New Zealand property prices and if you google it, you

540
00:25:47,400 --> 00:25:51,560
Speaker 3: zeal In property prices graph, it will look like almost

541
00:25:51,600 --> 00:25:54,600
Speaker 3: always property prices are going up, but that's not true.

542
00:25:54,680 --> 00:25:58,399
Speaker 3: That's the New Zealand average. But in Auckland you're going

543
00:25:58,440 --> 00:26:00,840
Speaker 3: to see periods we properly priced are quite flat for

544
00:26:00,840 --> 00:26:03,840
Speaker 3: a time and then they boom. So for example, between

545
00:26:04,040 --> 00:26:08,200
Speaker 3: about two thousand and nine ish and two thy fifteen,

546
00:26:08,680 --> 00:26:12,560
Speaker 3: property prices in Wellington were flat for ages, even though

547
00:26:12,600 --> 00:26:15,960
Speaker 3: the average price to property in New Zealand was going up.

548
00:26:16,440 --> 00:26:19,399
Speaker 3: And so the reason that I suggest diversifying around the

549
00:26:19,400 --> 00:26:21,320
Speaker 3: country is that if you've got a property in Auckland

550
00:26:21,359 --> 00:26:23,280
Speaker 3: and you've got a property in Wellington or a property

551
00:26:23,280 --> 00:26:27,600
Speaker 3: somewhere else, maybe the Auckland property market's flat, but that

552
00:26:27,640 --> 00:26:30,360
Speaker 3: one in Wellington's going up in value. Then the Wellington

553
00:26:30,400 --> 00:26:33,120
Speaker 3: market's flat, but the Auckland one's going up in value.

554
00:26:33,200 --> 00:26:37,280
Speaker 3: And so the purpose of diversifying or buying property around

555
00:26:37,320 --> 00:26:41,399
Speaker 3: the country is that you can more closely approximate the

556
00:26:41,440 --> 00:26:43,800
Speaker 3: New Zealand property market, and then you're going to see

557
00:26:43,800 --> 00:26:46,639
Speaker 3: your wealth grow a lot more consistently. If you only

558
00:26:46,680 --> 00:26:49,560
Speaker 3: buy in one specific town, you're going to have a

559
00:26:49,560 --> 00:26:52,359
Speaker 3: lot more flat periods where your wealth's not going up,

560
00:26:52,440 --> 00:26:54,440
Speaker 3: and then you're going to have these crazy boom periods.

561
00:26:54,520 --> 00:26:57,960
Speaker 2: Yeah, that makes sense because of the changes that we're

562
00:26:57,960 --> 00:27:02,000
Speaker 2: looking at with the current government, with the landlords and things.

563
00:27:02,080 --> 00:27:05,360
Speaker 2: You know, there was an advantage in looking at new builds.

564
00:27:06,160 --> 00:27:08,200
Speaker 2: Do you still see that and do you have an opinion,

565
00:27:08,359 --> 00:27:12,960
Speaker 2: particularly for an investment property of new build versus established residential.

566
00:27:13,880 --> 00:27:16,760
Speaker 3: Well, I should just say that our company only focuses

567
00:27:16,760 --> 00:27:18,760
Speaker 3: on new builds, right, So just before I tell you

568
00:27:18,800 --> 00:27:20,879
Speaker 3: what I think. Ye, why, I just want to put

569
00:27:20,920 --> 00:27:24,840
Speaker 3: that by it. Yeah, I just want to let everyone know, like, oh,

570
00:27:24,880 --> 00:27:27,600
Speaker 3: I've got a reason to be biased. Yeah. The truth

571
00:27:27,640 --> 00:27:29,480
Speaker 3: is that not everybody should buy a new build. There's

572
00:27:29,520 --> 00:27:33,679
Speaker 3: absolutely true. So the benefits previously were really around tax

573
00:27:34,000 --> 00:27:38,119
Speaker 3: and interesstructibility. Now there are still benefits to going for

574
00:27:38,160 --> 00:27:40,520
Speaker 3: a new build, which is that you need a twenty

575
00:27:40,520 --> 00:27:44,639
Speaker 3: percent deposit rather than a thirty percent deposit. And if

576
00:27:44,680 --> 00:27:47,359
Speaker 3: you think about your house going up in value, the

577
00:27:47,440 --> 00:27:50,000
Speaker 3: return is a lot higher if you put in a

578
00:27:50,040 --> 00:27:52,360
Speaker 3: smaller deposit because you put in less money, but your

579
00:27:52,359 --> 00:27:53,959
Speaker 3: house still goes up in value, so you can get

580
00:27:54,000 --> 00:27:57,000
Speaker 3: a better return. On top of that, the Reserve Bank

581
00:27:57,080 --> 00:27:59,679
Speaker 3: put out some modeling and they said, if somebody currently

582
00:27:59,760 --> 00:28:03,720
Speaker 3: owns one investment property today how many could they buy

583
00:28:04,560 --> 00:28:07,080
Speaker 3: over the next ten years once the DTIs come in.

584
00:28:07,520 --> 00:28:10,840
Speaker 3: And what they said is if you buy just existing properties,

585
00:28:10,840 --> 00:28:13,880
Speaker 3: so secondhand properties, they're ones that we're all used to purchasing.

586
00:28:14,280 --> 00:28:17,119
Speaker 3: If you currently own one investment property today, over the

587
00:28:17,160 --> 00:28:19,520
Speaker 3: next ten years, we think you can buy three more.

588
00:28:20,680 --> 00:28:24,160
Speaker 3: But if you decide to go and buy new build properties,

589
00:28:24,359 --> 00:28:26,760
Speaker 3: we think you can buy another five more over the

590
00:28:26,760 --> 00:28:29,720
Speaker 3: next ten years. Now that's just one example in one

591
00:28:29,760 --> 00:28:32,800
Speaker 3: scenario with one property investor, but that kind of shows

592
00:28:32,800 --> 00:28:34,439
Speaker 3: you that if you invest in new builds, you're going

593
00:28:34,480 --> 00:28:37,120
Speaker 3: to be able to grow your portfolio much faster. Now,

594
00:28:37,119 --> 00:28:38,479
Speaker 3: those are the pros, but let me tell you all

595
00:28:38,520 --> 00:28:41,320
Speaker 3: the comms. The main con of a new building you

596
00:28:41,360 --> 00:28:43,400
Speaker 3: can't renovate it. So if you go out and you

597
00:28:43,520 --> 00:28:47,360
Speaker 3: buy probably what I call a secondhand home, one that

598
00:28:47,400 --> 00:28:50,960
Speaker 3: somebody's lived in before, you've got the opportunity to renovate

599
00:28:50,960 --> 00:28:53,200
Speaker 3: it and add value. So let's say that it's currently

600
00:28:53,200 --> 00:28:56,320
Speaker 3: worth six hundred K, and you decide to spend fifty

601
00:28:56,360 --> 00:28:58,959
Speaker 3: thousand dollars renovating that, So you're earned for six fifty

602
00:28:59,280 --> 00:29:01,280
Speaker 3: Maybe by the end end of it it's worth seven

603
00:29:01,360 --> 00:29:04,040
Speaker 3: hundred or seven hundred and fifty k. Now, all of

604
00:29:04,080 --> 00:29:07,320
Speaker 3: a sudden, you've made what we call instant equity of

605
00:29:07,440 --> 00:29:10,680
Speaker 3: fifty to one hundred thousand dollars, And so some investors

606
00:29:10,680 --> 00:29:13,280
Speaker 3: look at the hands say absolutely, that's what I'm into.

607
00:29:13,640 --> 00:29:16,600
Speaker 3: I want to be involved renovating properties because I know

608
00:29:16,720 --> 00:29:19,520
Speaker 3: I can actively grow my wealth really quickly. And if

609
00:29:19,520 --> 00:29:22,400
Speaker 3: you're that way inclined buying what we call existing or

610
00:29:22,400 --> 00:29:25,400
Speaker 3: second hand homes, that could absolutely be the right strategy

611
00:29:25,400 --> 00:29:27,760
Speaker 3: for you. If you're sitting there and you're saying, do

612
00:29:27,800 --> 00:29:31,240
Speaker 3: you know what, not really into renovating. I don't want

613
00:29:31,240 --> 00:29:32,960
Speaker 3: to get my hands dirty. I don't want to be

614
00:29:33,040 --> 00:29:35,680
Speaker 3: too involved. I want something a little more hands off.

615
00:29:35,960 --> 00:29:37,360
Speaker 3: That's generally when you go for the.

616
00:29:37,280 --> 00:29:38,240
Speaker 1: New built asn't.

617
00:29:38,240 --> 00:29:40,240
Speaker 2: Part of the problem with new building, and I suppose

618
00:29:40,240 --> 00:29:42,480
Speaker 2: my question is, as well as you know are the

619
00:29:42,560 --> 00:29:45,720
Speaker 2: companies that do this, is that you have to pay

620
00:29:46,800 --> 00:29:51,240
Speaker 2: more up front or borrow and pay, and you don't

621
00:29:51,280 --> 00:29:54,440
Speaker 2: get the rent until it's built. So you know, I'm

622
00:29:54,480 --> 00:29:56,840
Speaker 2: paying a mortgage off my new build at the moment

623
00:29:56,920 --> 00:29:58,880
Speaker 2: and it won't be finished until the end of the year.

624
00:29:59,480 --> 00:30:01,600
Speaker 2: I can do that, right, So I'm in a privileged

625
00:30:01,640 --> 00:30:03,560
Speaker 2: position that I can do that, but I was thinking

626
00:30:03,720 --> 00:30:05,480
Speaker 2: why that would be and that might be harder. But

627
00:30:05,520 --> 00:30:08,640
Speaker 2: then I've heard ads from companies that say, you don't

628
00:30:08,760 --> 00:30:11,600
Speaker 2: pay you know, we don't want any money until it's

629
00:30:12,600 --> 00:30:14,440
Speaker 2: until it's ready for you to turn the key.

630
00:30:15,280 --> 00:30:17,280
Speaker 3: Yeah, that's actually a really good point, Pauler. So there

631
00:30:17,280 --> 00:30:20,360
Speaker 3: are two different types of new builds, right. So the

632
00:30:20,400 --> 00:30:23,200
Speaker 3: one that you first talked about, and maybe I don't

633
00:30:23,240 --> 00:30:26,400
Speaker 3: know your personal situation, but this might be what you've

634
00:30:27,160 --> 00:30:30,520
Speaker 3: purchased is what we call a progressive payments built. So

635
00:30:30,560 --> 00:30:34,000
Speaker 3: that's when you've probably purchased the land, you're paying a

636
00:30:34,040 --> 00:30:36,880
Speaker 3: mortgage on the land, and now you've hired a building

637
00:30:36,960 --> 00:30:40,440
Speaker 3: company to build that property for you, and so that

638
00:30:40,440 --> 00:30:43,280
Speaker 3: would have been in your contract. So you've probably borrowed

639
00:30:43,280 --> 00:30:45,080
Speaker 3: a couple of hundred k to buy the land, you're

640
00:30:45,080 --> 00:30:48,680
Speaker 3: paying the mortgage on that, and then you're making those

641
00:30:48,760 --> 00:30:52,120
Speaker 3: progressive payments as that property is being built. Now, that's

642
00:30:52,200 --> 00:30:55,840
Speaker 3: one type of property and the benefit to that is

643
00:30:55,880 --> 00:30:58,360
Speaker 3: that once it's built, you'll probably get some of that

644
00:30:58,560 --> 00:31:00,880
Speaker 3: instant equity. By the time bill it is probably going

645
00:31:00,960 --> 00:31:03,760
Speaker 3: to be worth more than the total amount that you've

646
00:31:03,760 --> 00:31:05,560
Speaker 3: paid because you're taking a bit on a bit of

647
00:31:05,640 --> 00:31:09,320
Speaker 3: risk there. You're making some payments, so that's the benefit

648
00:31:09,360 --> 00:31:11,920
Speaker 3: the connors of course that you're currently paying a mortgage,

649
00:31:12,040 --> 00:31:14,240
Speaker 3: but you're not getting any rental income. That's one type

650
00:31:14,240 --> 00:31:16,400
Speaker 3: of new build. The second type of new build, and

651
00:31:16,400 --> 00:31:18,040
Speaker 3: this is the one that we focus more on at

652
00:31:18,080 --> 00:31:22,080
Speaker 3: Opus Partners, what's called a turnkey property. So that's where

653
00:31:22,120 --> 00:31:25,480
Speaker 3: you just put down a ten percent deposit and then

654
00:31:26,160 --> 00:31:27,880
Speaker 3: once the property is built, you pay the rest of

655
00:31:27,920 --> 00:31:29,920
Speaker 3: the money. So effectively, you don't have a big fat

656
00:31:30,040 --> 00:31:33,680
Speaker 3: mortgage until you've got rental income coming in. So often

657
00:31:33,720 --> 00:31:35,960
Speaker 3: we talk about new builds as just one group, but

658
00:31:36,040 --> 00:31:37,800
Speaker 3: actually there are those two different types.

659
00:31:38,720 --> 00:31:41,080
Speaker 2: Should you be concerned at the moment with the way

660
00:31:41,120 --> 00:31:43,920
Speaker 2: the market is on the company that you go in with,

661
00:31:44,520 --> 00:31:47,120
Speaker 2: you know, I mean we've seen developers going under, you know,

662
00:31:47,160 --> 00:31:50,400
Speaker 2: we read the stories. Not all of them are small,

663
00:31:50,960 --> 00:31:54,760
Speaker 2: you know, so you know there is some genuine kind

664
00:31:54,760 --> 00:31:55,480
Speaker 2: of risk there.

665
00:31:55,520 --> 00:31:57,440
Speaker 1: We've seen well, particularly in Gosh.

666
00:31:57,480 --> 00:31:59,640
Speaker 2: I live in Testa and Norkland and you're just seeing

667
00:31:59,720 --> 00:32:04,440
Speaker 2: so so many of the infil housing going up, which hey,

668
00:32:04,720 --> 00:32:07,440
Speaker 2: people have got opinions on it that I'm pro development,

669
00:32:07,520 --> 00:32:10,280
Speaker 2: So it'll be I have to be supportive, but you know, yeah,

670
00:32:10,600 --> 00:32:14,320
Speaker 2: how do you do your due diligence when you know,

671
00:32:14,360 --> 00:32:16,680
Speaker 2: when thinking about whom does that build for you?

672
00:32:17,520 --> 00:32:20,280
Speaker 3: Yeah, that's such an important question, and especially if you're

673
00:32:20,280 --> 00:32:22,920
Speaker 3: going down that first avenue of progressive payments, because the

674
00:32:23,000 --> 00:32:25,600
Speaker 3: risk is, let's say you've bought that piece of land

675
00:32:25,680 --> 00:32:28,360
Speaker 3: right and you're currently paying a mortgage on it. Let's

676
00:32:28,400 --> 00:32:31,200
Speaker 3: say the house gets half built and then the developer

677
00:32:31,240 --> 00:32:33,920
Speaker 3: goes under. Now you're in a real pickle. And it's

678
00:32:33,960 --> 00:32:36,480
Speaker 3: not just that. Maybe you've got a master build guarantee

679
00:32:36,520 --> 00:32:38,800
Speaker 3: and so yep, they're going to organize somebody else to

680
00:32:38,800 --> 00:32:41,320
Speaker 3: come and finish off that property for you. But in

681
00:32:41,360 --> 00:32:44,240
Speaker 3: the meantime, you've already borrowed four or five hundred thousand dollars,

682
00:32:44,400 --> 00:32:46,600
Speaker 3: and while they're messing around trying to find you to

683
00:32:46,800 --> 00:32:49,080
Speaker 3: find you a builder to finish the property, you're still

684
00:32:49,080 --> 00:32:51,200
Speaker 3: paying the mortgage on that. So that's where it really

685
00:32:51,240 --> 00:32:53,360
Speaker 3: starts to become an issue. If you're in that contract,

686
00:32:53,480 --> 00:32:56,720
Speaker 3: If you're in a turn key style where you're only

687
00:32:56,720 --> 00:32:59,120
Speaker 3: put in a small deposit then pay the rest at

688
00:32:59,160 --> 00:33:01,160
Speaker 3: the end, that's less of an issue because even if

689
00:33:01,200 --> 00:33:03,400
Speaker 3: the builder falls over, you get your deposit back because

690
00:33:03,400 --> 00:33:06,400
Speaker 3: it's held but held by the lawyers. So in terms

691
00:33:06,440 --> 00:33:09,040
Speaker 3: of how do you do your due diligence, the first

692
00:33:09,120 --> 00:33:12,800
Speaker 3: question I'd be asking is who am I signing the

693
00:33:12,800 --> 00:33:15,920
Speaker 3: contract with? Because what we've seen a couple of times

694
00:33:16,560 --> 00:33:20,040
Speaker 3: is people might buy off one of those franchise builders,

695
00:33:20,080 --> 00:33:23,480
Speaker 3: people like a Golden Homes or a Signature Homes, And

696
00:33:23,520 --> 00:33:26,760
Speaker 3: I'm not specifically talking about any one company, but those

697
00:33:26,800 --> 00:33:29,480
Speaker 3: types of companies, and you think, well, that's great, I

698
00:33:29,520 --> 00:33:33,720
Speaker 3: am investing with somebody who is really reputable. But then

699
00:33:33,760 --> 00:33:36,160
Speaker 3: it turns out that you didn't sign the contract with

700
00:33:36,480 --> 00:33:39,640
Speaker 3: the master franchise of whatever that building company is. You

701
00:33:39,800 --> 00:33:42,320
Speaker 3: signed it with the local franchise and tot on it

702
00:33:42,560 --> 00:33:45,680
Speaker 3: or the local franchise in Hamilton or wherever you happen

703
00:33:45,720 --> 00:33:48,920
Speaker 3: to be in the country. Now, that's one single small

704
00:33:49,000 --> 00:33:52,240
Speaker 3: building company, and if they fall over, that's where you

705
00:33:52,280 --> 00:33:56,240
Speaker 3: can really come unstuck. So people can sort of sometimes

706
00:33:56,360 --> 00:33:58,960
Speaker 3: lull themselves into a false sense of security because you

707
00:33:58,960 --> 00:34:01,520
Speaker 3: think you're using a big company, but you're not using

708
00:34:01,560 --> 00:34:07,080
Speaker 3: a big company. You were using a small franchise, local

709
00:34:07,120 --> 00:34:11,160
Speaker 3: franchise of that big builder. So first thing I do

710
00:34:11,200 --> 00:34:13,480
Speaker 3: is see who am I actually signing the contract with.

711
00:34:13,760 --> 00:34:16,120
Speaker 3: The second thing I'd then ask is what are the

712
00:34:16,160 --> 00:34:20,200
Speaker 3: guarantees around that? So are they a master builder's If

713
00:34:20,200 --> 00:34:23,959
Speaker 3: it's master build and you're doing that progressive payment build,

714
00:34:23,960 --> 00:34:26,840
Speaker 3: that you're doing poorer, that's when you I feel like,

715
00:34:26,880 --> 00:34:29,879
Speaker 3: I'll give a free consultation here. Wh's quite lovely, it's

716
00:34:29,920 --> 00:34:35,799
Speaker 3: quite nice. And then if you've got a master build

717
00:34:35,840 --> 00:34:39,080
Speaker 3: and that that developer falls over, kind of okay, because

718
00:34:39,120 --> 00:34:42,200
Speaker 3: then sweet this person, they're going to organize another builder

719
00:34:42,360 --> 00:34:44,520
Speaker 3: to come in and finish the job, so that gives

720
00:34:44,520 --> 00:34:47,560
Speaker 3: you a little bit more security. Master Bold isn't the

721
00:34:47,600 --> 00:34:52,680
Speaker 3: only type of it's not an insurance scheme but a

722
00:34:52,719 --> 00:34:55,719
Speaker 3: protection scheme. There is another one run by a th

723
00:34:55,760 --> 00:34:59,279
Speaker 3: that's called Halo or New Zealand Certified Builders. But I'd

724
00:34:59,320 --> 00:35:03,000
Speaker 3: want some type of scheme like that. Some building companies

725
00:35:03,160 --> 00:35:05,560
Speaker 3: from those big franchise home builders that you hear about

726
00:35:05,640 --> 00:35:07,480
Speaker 3: kind of like what I named before, they might have

727
00:35:07,560 --> 00:35:09,759
Speaker 3: their own schemes. I'd want my lawyer to dig into

728
00:35:09,760 --> 00:35:10,960
Speaker 3: the details to protect me.

729
00:35:12,200 --> 00:35:15,319
Speaker 2: Okay, I really that was I think really helpful, and

730
00:35:15,360 --> 00:35:18,800
Speaker 2: I think just thinking about getting into the market. You know,

731
00:35:18,880 --> 00:35:20,680
Speaker 2: I'm one of those people that always goes you know,

732
00:35:20,719 --> 00:35:23,000
Speaker 2: there's your cup half follow half empty. Who cares take

733
00:35:23,000 --> 00:35:25,719
Speaker 2: a sip? Because at the end of the day, if

734
00:35:25,719 --> 00:35:28,480
Speaker 2: you're not kind of getting in, then you know it's

735
00:35:28,560 --> 00:35:32,000
Speaker 2: never going to be easy because it's just not but

736
00:35:32,160 --> 00:35:34,040
Speaker 2: what you can do and how you can do it.

737
00:35:34,239 --> 00:35:37,160
Speaker 2: And as you say, you know, I've gone in with

738
00:35:37,239 --> 00:35:39,680
Speaker 2: a friend before and that worked for both of us.

739
00:35:39,760 --> 00:35:43,680
Speaker 2: We had it absolutely iron tight, and we just both

740
00:35:43,800 --> 00:35:46,239
Speaker 2: we would never have come out with forty thousand dollars each.

741
00:35:46,360 --> 00:35:48,520
Speaker 2: That would then set us off in a different direction.

742
00:35:48,719 --> 00:35:51,240
Speaker 2: So there's all sorts of kind of options. I suppose

743
00:35:51,280 --> 00:35:53,120
Speaker 2: I would just say to anyone that's doing this, I'm

744
00:35:53,120 --> 00:35:57,040
Speaker 2: definitely not a financial advisor, and so please get the

745
00:35:57,120 --> 00:35:59,120
Speaker 2: right advice and talk to the right people so that

746
00:35:59,200 --> 00:36:01,200
Speaker 2: you know, you know kind of what you're doing or

747
00:36:01,200 --> 00:36:14,920
Speaker 2: what you're eating up to. Hey, so, ed, this is

748
00:36:14,920 --> 00:36:17,360
Speaker 2: called ask me anything, and I've done all the asking,

749
00:36:17,600 --> 00:36:19,160
Speaker 2: So I now like to give you a bit of

750
00:36:19,160 --> 00:36:21,200
Speaker 2: an opportunity to ask me something if you would like to.

751
00:36:22,360 --> 00:36:24,919
Speaker 3: Yeah, I do, Paula. So one thing that I'm really

752
00:36:24,960 --> 00:36:27,480
Speaker 3: interested and this is a good exercise for anybody at

753
00:36:27,480 --> 00:36:31,239
Speaker 3: home is you've started investing in property. So if I

754
00:36:31,360 --> 00:36:34,920
Speaker 3: was to ask you to think forward fifteen years in

755
00:36:34,920 --> 00:36:37,200
Speaker 3: the future, twenty years in the future, and you think

756
00:36:37,239 --> 00:36:40,799
Speaker 3: about your perfect day in retirement once you've stopped doing

757
00:36:40,840 --> 00:36:44,160
Speaker 3: they ask me anything podcast, what are you doing on

758
00:36:44,200 --> 00:36:46,520
Speaker 3: that perfect day in retirement and who are you with?

759
00:36:47,120 --> 00:36:50,239
Speaker 2: Well, I'm we'll go less than twenty years, because I'd

760
00:36:50,280 --> 00:36:52,040
Speaker 2: be happy to be dead in twenty twenty five years,

761
00:36:52,040 --> 00:36:54,279
Speaker 2: because I just think old age is a bit of

762
00:36:54,320 --> 00:36:58,920
Speaker 2: a bitch. But so yeah, for me, I want choices.

763
00:36:59,040 --> 00:37:01,799
Speaker 2: So hence why I am quite heavily invested right now

764
00:37:01,840 --> 00:37:05,080
Speaker 2: and working quite hard. I'm fifty five years old. So

765
00:37:05,440 --> 00:37:08,759
Speaker 2: for me, it is being able to travel if I

766
00:37:08,800 --> 00:37:11,399
Speaker 2: want to. It is being able to spend time with

767
00:37:11,480 --> 00:37:13,759
Speaker 2: my grandchildren, and I would like to be able to

768
00:37:13,760 --> 00:37:16,200
Speaker 2: take them on a trip and have really unique special

769
00:37:16,239 --> 00:37:19,960
Speaker 2: experiences with them that they will always remember and will

770
00:37:20,000 --> 00:37:23,040
Speaker 2: be part of that. So, you know, I don't need

771
00:37:23,160 --> 00:37:25,880
Speaker 2: the flashest car. I actually don't need the flashest house.

772
00:37:26,160 --> 00:37:26,319
Speaker 1: You know.

773
00:37:26,400 --> 00:37:29,760
Speaker 2: That sort of stuff actually doesn't really worry me that much.

774
00:37:29,920 --> 00:37:34,440
Speaker 2: You know, practical in works. But if I suppose what

775
00:37:34,520 --> 00:37:37,400
Speaker 2: I'm trying to save for and invest for at the

776
00:37:37,440 --> 00:37:40,879
Speaker 2: moment is so that I can have experiences that, let's

777
00:37:40,880 --> 00:37:42,360
Speaker 2: be honest, can be quite expensive.

778
00:37:43,239 --> 00:37:45,120
Speaker 3: And if I was to ask you, Paula, so you're

779
00:37:45,160 --> 00:37:48,040
Speaker 3: traveling overseas with your grandkids and you want to give

780
00:37:48,040 --> 00:37:51,360
Speaker 3: them some unique special experiences, where are you traveling and

781
00:37:51,360 --> 00:37:54,680
Speaker 3: what sort of experiences do you want to have with them?

782
00:37:55,080 --> 00:37:58,560
Speaker 2: Well, my very because you kind of go to suit

783
00:37:58,600 --> 00:38:01,080
Speaker 2: their personalities as well, and I think they're all going

784
00:38:01,120 --> 00:38:04,719
Speaker 2: to be different and quite frankly in twentye's time if

785
00:38:04,880 --> 00:38:08,080
Speaker 2: you have great grandchildren, so that's kind of cool. So

786
00:38:08,280 --> 00:38:11,240
Speaker 2: in that respect, you are kind of matching them. But yeah,

787
00:38:11,360 --> 00:38:14,080
Speaker 2: you know, I haven't done India. I haven't done you

788
00:38:14,120 --> 00:38:16,279
Speaker 2: know those places I haven't been, which I think they

789
00:38:16,320 --> 00:38:20,200
Speaker 2: could find really interesting. My boys at the moment are

790
00:38:20,200 --> 00:38:22,760
Speaker 2: just full and active, so you'd want to take somewhere

791
00:38:22,760 --> 00:38:25,560
Speaker 2: that exhausted them yet, nam I.

792
00:38:25,600 --> 00:38:26,520
Speaker 1: Mean want to take them there.

793
00:38:26,600 --> 00:38:28,480
Speaker 2: I promise them I'll take them to Nuway in the

794
00:38:28,560 --> 00:38:32,000
Speaker 2: next twelve months because I just think they will snorkel

795
00:38:32,120 --> 00:38:34,560
Speaker 2: and jump off rocks and absolutely love it. But I

796
00:38:34,600 --> 00:38:37,120
Speaker 2: think I want to be a bit more adventurous with them.

797
00:38:37,120 --> 00:38:39,160
Speaker 2: When they're a bit older and I'm a bit older.

798
00:38:39,640 --> 00:38:43,600
Speaker 3: And so you're off on these cool experiences with your grandkids.

799
00:38:43,640 --> 00:38:46,719
Speaker 3: You said you wanted those experiences to be ones that

800
00:38:46,719 --> 00:38:50,480
Speaker 3: they would remember thinking about we start this off talking

801
00:38:50,480 --> 00:38:53,000
Speaker 3: about my grandfather and how I remember him. How do

802
00:38:53,040 --> 00:38:54,880
Speaker 3: you want your grandkids to remember you?

803
00:38:55,400 --> 00:39:01,640
Speaker 2: Ah, they will, They'll remember me as a dominant, big

804
00:39:01,680 --> 00:39:06,240
Speaker 2: personality that and I just do as.

805
00:39:06,080 --> 00:39:07,600
Speaker 1: I said I like to do with them.

806
00:39:08,160 --> 00:39:10,120
Speaker 2: I didn't want to be that grandparent that was like,

807
00:39:10,239 --> 00:39:12,879
Speaker 2: oh my god, we have to go visit granny. I'm

808
00:39:12,920 --> 00:39:15,440
Speaker 2: going to sit around and it smells a bit and

809
00:39:15,880 --> 00:39:19,719
Speaker 2: she always makes those biscuits, and you know, and you

810
00:39:19,719 --> 00:39:23,319
Speaker 2: tell us off for our manners. So I wanted. I

811
00:39:23,360 --> 00:39:27,439
Speaker 2: wanted kind of I call it free chaos where it's

812
00:39:28,080 --> 00:39:30,280
Speaker 2: and I just you know, so we're and so that's

813
00:39:30,320 --> 00:39:31,640
Speaker 2: how I want to be remembered.

814
00:39:32,160 --> 00:39:35,080
Speaker 1: Not necessarily always fun. You know. I love the deeper

815
00:39:35,280 --> 00:39:36,480
Speaker 1: conversations with.

816
00:39:36,360 --> 00:39:40,239
Speaker 2: Them, you know, and I and I encourage that and

817
00:39:40,640 --> 00:39:42,880
Speaker 2: you know, and try and do that with them. But equally,

818
00:39:43,120 --> 00:39:45,319
Speaker 2: you know, I don't I want them to remember me

819
00:39:45,360 --> 00:39:49,480
Speaker 2: as being more fun, slightly chaotic and just full of love.

820
00:39:51,000 --> 00:39:54,839
Speaker 2: How beautiful yeah, all right, all right, well I'll keep

821
00:39:54,880 --> 00:39:57,840
Speaker 2: working on that, but I am I am really, really,

822
00:39:58,040 --> 00:40:02,120
Speaker 2: really lucky now. It has been absolutely fantastic chat to

823
00:40:02,120 --> 00:40:05,520
Speaker 2: you today. Ed. If people want to hear more, then

824
00:40:05,800 --> 00:40:10,200
Speaker 2: they can go to Property Academy podcast. I've been having

825
00:40:10,200 --> 00:40:11,640
Speaker 2: a bit of a listening and I just found it

826
00:40:11,680 --> 00:40:14,400
Speaker 2: on iHeart, but they can find it anywhere, I presume.

827
00:40:14,960 --> 00:40:17,160
Speaker 3: Yes, Spotify, Apple podcasts where if you want.

828
00:40:17,000 --> 00:40:18,600
Speaker 1: To yep, easy. That's good.

829
00:40:19,280 --> 00:40:21,680
Speaker 2: And that's it for another episode of Ask Me Anything.

830
00:40:21,719 --> 00:40:24,279
Speaker 2: You can get in touch with me by emailing ask

831
00:40:24,360 --> 00:40:27,799
Speaker 2: Paula at zid me dot co dot in sid you know.

832
00:40:27,920 --> 00:40:29,200
Speaker 1: You can find me on Facebook.

833
00:40:29,200 --> 00:40:31,200
Speaker 2: You can find me on LinkedIn, you can instagram me

834
00:40:31,400 --> 00:40:34,200
Speaker 2: that I'm useless at getting back on that, but make

835
00:40:34,239 --> 00:40:37,080
Speaker 2: sure you just follow Ask Me Anything on iHeartRadio or

836
00:40:37,080 --> 00:40:42,440
Speaker 2: wherever you get your podcasts. I'm Paula Bena, Ask Me Anything. Goodbye,