Speaker 1: You're listening to the Weekend Collective podcast from News Talks
Speaker 1: Ed Bassure.
Speaker 2: Yesterday was bad.
Speaker 3: And welcome back to the Weekend Collective. It is time
Speaker 3: now for the One roofe radio show. We want your calls.
Speaker 3: We'd love to have your participation on one highty ten
Speaker 3: eighty in text on nine two nine two, And today
Speaker 3: my guest is from Velocity with an A at the
Speaker 3: start and her name is Hello Sullivant, Hello Helen, how
Speaker 3: are you going?
Speaker 2: Good tim? I am great to thank you? How are you?
Speaker 3: Very good things and just explain a little bit for
Speaker 3: those people who will have heard of Velocity about what
Speaker 3: you guys do.
Speaker 2: Yeah, Velocity is a quibi o proptic that provides a
Speaker 2: lot of valuation ordering and management software for banks. And
Speaker 2: we also have a new product called Velocity Nexus which
Speaker 2: we provide to the real estate industry, which is a
Speaker 2: property research tool that real estate agents use to assess
Speaker 2: and research their markets.
Speaker 3: And so for the average punter, what would they use
Speaker 3: for them?
Speaker 2: For the average we don't have a consumer offering, but
Speaker 2: what we are providing is parwering real estate agents. And indeed,
Speaker 2: the one roof website is kind of kind of what.
Speaker 3: Brings me here, Tim, That is fantastic because we love
Speaker 3: the one Roof website actually on the velocity on the
Speaker 3: value side of things. So the first thing we want
Speaker 3: to have a chat about is that, were you surprised
Speaker 3: that trade Me data shows that rent prices are for
Speaker 3: the first time in a couple.
Speaker 2: Of years, not surprised to see that that market is
Speaker 2: definitely softening. Yeah, all my sources are telling me that
Speaker 2: the rental market is definitely a lot softer than it
Speaker 2: has been. Demand as low. I mean, that's normal for
Speaker 2: this time of year anyway for some peculiar reason, and
Speaker 2: Auckland people don't like shifting their stuff in pouring rain.
Speaker 2: Go figure. Yeah, it's definitely softer than usual.
Speaker 3: It did surprise me because I think until recently the
Speaker 3: immigration figures had shown this massive number of people who
Speaker 3: are leaving and of course we're sort of importing people
Speaker 3: to make up for that, but in fact, sorry, a
Speaker 3: massive number of people still arriving as well. We had
Speaker 3: in the past year some amazing immigration stats. But it
Speaker 3: does surprise me that that hasn't well, it hasn't equated
Speaker 3: to one a rise in property prices or rents, but
Speaker 3: in terms of the rental price drop. How much of
Speaker 3: that has to do with government policy because well, for instance,
Speaker 3: the lack of deductibility was obviously to me a factor
Speaker 3: in putting rents up, because you make it more expensive
Speaker 3: to be a landlord, you're going to pass that on.
Speaker 3: But is that a factor at all or not yet?
Speaker 2: I don't really think so, because the thing with rent
Speaker 2: is that it's not really set by the costs that
Speaker 2: the landlord is experiencing. It is mainly driven by the
Speaker 2: market and what is achievable for that property. Most rental
Speaker 2: properties do actually run out a cash loss.
Speaker 3: Okay, well, how about this then? Is the market driven
Speaker 3: by the fact that overall for all landlords it was
Speaker 3: more expensive too, you know, you couldn't deduct as much.
Speaker 3: So is the market influenced by policies like that? And
Speaker 3: we don't worry people, We're not going to make this
Speaker 3: a discussion abound whether deductibility and text ductibility and all
Speaker 3: that sort of thing is a good thing or not.
Speaker 3: But I mean, if you take a macro view.
Speaker 2: Look, my macro view is my my experience of the market,
Speaker 2: is that what landlords is, what is achievable in revenue
Speaker 2: and rent is very much driven by the supply and
Speaker 2: demand as opposed to input prices, which is where the
Speaker 2: deductibility or otherwise comes in.
Speaker 3: Okay, So when they're talking about a drop in rental prices,
Speaker 3: I guess that is we're not seeing people haggling their
Speaker 3: rents down yet, are we? Would that be just as
Speaker 3: new listings come up. We've just noticed that the average
Speaker 3: price of new listings for rental is slightly cheaper.
Speaker 2: Now, I think it's more. Number one, we're not saying
Speaker 2: rents continue to go up as they had been doing.
Speaker 2: And number two, you if you spent a lot of
Speaker 2: time monitoring rental sites, as geeks like me do, you
Speaker 2: will see properties that have been on the market for
Speaker 2: some time starting to drop in price. And then when
Speaker 2: a new when new stock comes to market, they landlord
Speaker 2: will probably managing when they're setting the rent We'll look
Speaker 2: at what's being advertised around the area and in that space,
Speaker 2: and they'll set their price accordingly. Yeah, because there's no
Speaker 2: point in you know, it's surprising how price sensitive the
Speaker 2: rental market is. If you overprice a rental property by
Speaker 2: twenty or even twenty dollars, you will find that you
Speaker 2: don't get inquiry for it.
Speaker 3: Actually, by the way, we should give these stat actually,
Speaker 3: just because when you hear that rentals have dropped, it
Speaker 3: makes you think, oh wow, how much. But it's a
Speaker 3: month on month looks like it's a five dollars a
Speaker 3: week drop to six hundred and forty five bucks, So
Speaker 3: it's it's hardly plummeted or anything. But I guess it's
Speaker 3: just a relief to people who are renting or looking
Speaker 3: to rent that it's not this crazy market where you know,
Speaker 3: you've got to go bid against it with other people
Speaker 3: and or guess what, you know, another fifty bucks will
Speaker 3: do it more.
Speaker 2: Than anything else. It's preferable to find yourself at an
Speaker 2: open home with a horde of people, which I remember
Speaker 2: doing in my bad old days renting, and you'd turn
Speaker 2: up and there'd be fifty people standing outside the open home.
Speaker 3: You go, oh my god, Actually, actually I do. I
Speaker 3: only remember that because when we rented, we bought the
Speaker 3: place that we were renting. But when we rented it
Speaker 3: and we had a couple hundred meters from Saint Helia's Beach,
Speaker 3: and there was no one interested in looking at it
Speaker 3: because it was an old it was old like the
Speaker 3: day course you know, sort of that sort of eighties
Speaker 3: pink sort of car.
Speaker 2: Yes, oh gosh, avocado.
Speaker 3: It was all pretty pastal and it was pretty dated
Speaker 3: and all that. But the agent it was well priced,
Speaker 3: but it was well priced, but no one was looking. Literally,
Speaker 3: I didn't have to burd against anyone. No one was
Speaker 3: looking at it. And I think I made an offer
Speaker 3: for a bit cheaper than it was and the agent said, yeah, sure,
Speaker 3: And I mean it was the best news ever. But
Speaker 3: of course then you go forward ten years or something
Speaker 3: and it's just it went nuts. What sees do we
Speaker 3: ever have a sort of balanced market where maybe you've
Speaker 3: got three or four in parties, it's not sure. What
Speaker 3: is the happy medium? Do you think? Well, actually, the
Speaker 3: happy medium depends on whether your renter, because the happy
Speaker 3: medium for a renter is you're the only one interested
Speaker 3: and it's nice and cheap. The happy medium for you
Speaker 3: as a landlord is you've got people you know, fighting
Speaker 3: to get the property, and more.
Speaker 2: Than anything else, you're keeping your you're keeping it occupied.
Speaker 2: I mean, one of the things that we the counsel
Speaker 2: that I always used to give landlords who you're wanting
Speaker 2: to hang on for a higher price, it takes a
Speaker 2: lot of weeks at twenty or thirty dollars a week
Speaker 2: extra rent to pay for three or four weeks of
Speaker 2: vacant occupation, and so you are far better to meet
Speaker 2: the market in terms of the rental price and get
Speaker 2: the property occupied.
Speaker 3: Actually that's not because that's quite a useful thing for
Speaker 3: rents to bear in mind and remark like this. Then
Speaker 3: that because if a property's been sitting vacant for a
Speaker 3: couple of weeks and you're offering, say twenty bucks less,
Speaker 3: it's worth make an offer. I mean it's worth that
Speaker 3: because it's like trying to.
Speaker 2: Buy a house. You don't necessarily pay the asking. You'll
Speaker 2: make an offer, so you know, you might get knocked back.
Speaker 2: But how much does know who?
Speaker 3: Well, look at it this way, if it's.
Speaker 2: Doesn't cost you anything to get to know.
Speaker 3: For instance, if it's six hundred and fifty bucks and
Speaker 3: you're thinking, you know what I'm going to ask, offer
Speaker 3: them six one hundred and I don't know, ten or twenty.
Speaker 3: I mean that's quite a few weeks that they would
Speaker 3: have to make up for it. I mean, if they
Speaker 3: had another couple of weeks vacant, that's probably worth the
Speaker 3: landlord thinking, oh, you know what, you're a good tenant.
Speaker 2: You look reliable, Bengo, it's yours absolutely, and the same
Speaker 2: when you've got tenants who are in situ and you're
Speaker 2: looking at written rises. As a landlord, way better to
Speaker 2: retain a good tenant than try and squeak an extra
Speaker 2: at ten to fifteen dollars out of it and loser
Speaker 2: a good sitting tenant. Have a few weeks back.
Speaker 3: We'd love to have your cause on this on how
Speaker 3: you go about negotiating your rent when you're looking for
Speaker 3: a property. But would you ever here's here's the big one,
Speaker 3: and I don't to be honest, I'm not sure we're
Speaker 3: really in this territory yet unless you are overpaying, unless
Speaker 3: you're one of those tenants who I don't know, for
Speaker 3: some reason, you look at your rent and you're going, wow,
Speaker 3: we're paying way too much. Have you ever negotiated a
Speaker 3: rental decrease? Have you ever back in your rental days?
Speaker 3: If you've always Once you're in there, you're sort of like, oh,
Speaker 3: well this is my budget, just keep paying.
Speaker 4: Yeah, well, I look.
Speaker 2: We've seen it happen, particularly when a property's value is compromised.
Speaker 2: You know there's road works going on outside, or all
Speaker 2: the buildings is under renovation, or you know, something's something
Speaker 2: major happens. You know, we saw quite a bit of
Speaker 2: it during post pandemic, when you know, particular in the
Speaker 2: inner city there's a lot of vacancy. People who reached
Speaker 2: the end of the e fixed to take a look
Speaker 2: at trade me and go, karke place underneath me is
Speaker 2: one hundred bucks cheaper than what I'm paying, and that's
Speaker 2: a valid mart You know, ultimately, when it comes to rent,
Speaker 2: you can appeal to the tendency tribunal and then and
Speaker 2: say this is not market rent that I'm being changed,
Speaker 2: and then you know, then it all comes down to
Speaker 2: the evidence. What are some of the properties so renting
Speaker 2: for around you? And it's pretty easy to find that
Speaker 2: stuff on all the websites because.
Speaker 3: These days, actually I was thinking in the older days,
Speaker 3: where more landlords manage their own rentals, that would be
Speaker 3: a more awkward conversation, isn't But these days most I mean,
Speaker 3: what do we know what proportion of properties are managed
Speaker 3: by property managers?
Speaker 2: That data always used to say it was thirty to
Speaker 2: forty percent. We're managed by property managers, And you know,
Speaker 2: sort of sixty to seventy percent where self managed. Really,
Speaker 2: I suspect things have changed, but it's really hard to
Speaker 2: get a sense of what the you know, there's no
Speaker 2: market share data that you can kind of reliably get.
Speaker 2: But kiwis are very we're good deal. Oh wire is
Speaker 2: right and in property management as much as anything else.
Speaker 3: That actually surprises me. But I guess because every I
Speaker 3: think just about every expert that we've had or commentator
Speaker 3: we've had in the studio when it comes to property investment,
Speaker 3: the question around who should manage your property has almost
Speaker 3: resounding I would say ninety five percent of the opinion
Speaker 3: is that if you don't, if you just get someone
Speaker 3: else to do it and avoid yourself a whole world
Speaker 3: of headaches unless you are really really seasoned, have the
Speaker 3: time to do it and the expertise, and you just
Speaker 3: grate at it.
Speaker 2: Look, I'd totally agree, it's an incredibly complicated business these days.
Speaker 2: You know, there's a lot of compliance and ultimately you're
Speaker 2: in business, so there's a number of things that you
Speaker 2: have to comply with, and my personal preference has always
Speaker 2: been to pay someone else to work that stuff out
Speaker 2: for me and take those you know, so that when
Speaker 2: the sync overflowers or the toilet blocks on a Saturday
Speaker 2: after no, I don't get the phone call.
Speaker 5: Yeah, actually, on that thing about if you are if
Speaker 5: you do think you're in an apartment or a house
Speaker 5: where you are paying too much, look the first price.
Speaker 3: The first step would be surely to talk to you
Speaker 3: wouldn't go to the tendency to no, you wouldn't start.
Speaker 3: I mean that's pretty I don't know a blunt instrument,
Speaker 3: isn't it. So you talk to the landlord of the
Speaker 3: letting agent and just say.
Speaker 2: First I gather the evidence, so you know, as opposed
Speaker 2: to just going might reckon? Is I reckon I'm paying
Speaker 2: too much? What are some of the properties in a
Speaker 2: similar condition renting for around where you're living? Sometimes it's
Speaker 2: really hard to find comparables. You know, you might have
Speaker 2: the penthouse apartment, you might have the sort of the
Speaker 2: dark thing on the corner on the corner of the block.
Speaker 2: But there will be something. There will be There's always
Speaker 2: data on on websites. One roof it has a great
Speaker 2: mental set as well. Take a look at it and
Speaker 2: see what some of the properties are renting for. Start
Speaker 2: with data. As always, always my default position.
Speaker 3: Yeah, because I thinking if you're renting a house, the
Speaker 3: comparisons are probably a bit more tricky, isn't it, Because
Speaker 3: you could be a house on the same street. You
Speaker 3: could be a three bedroom house on the same street
Speaker 3: along with another three bedroom house, but you know, one
Speaker 3: house might be I don't know, brand new bathroom, freshly decorated,
Speaker 3: all that sort of thing. It's not so straightforward, is it.
Speaker 2: It's not straightforward, and that's why data and judgment comes
Speaker 2: into it.
Speaker 3: And Okay, so you've had a chat with the landlord
Speaker 3: and the letting agent and they've said, no, no, we're
Speaker 3: not prepared for just the rent you signed up to it.
Speaker 3: That was the market, and that is the market. If
Speaker 3: you decide you want to take that further, then what
Speaker 3: it is the tend to.
Speaker 6: Be in is it?
Speaker 7: Yeah?
Speaker 3: And so what's involved with that?
Speaker 2: Then filling in lots of forms, waiting your turn for
Speaker 2: a hearing, attending the hearing, presenting your evidence. The landlord
Speaker 2: or the leading agent would debtend the hearing as well,
Speaker 2: present their counter evidence, and adjudicator listens carefully, blimey, and
Speaker 2: then make the decision do.
Speaker 3: You have to actually turn up to the tenth stritripunal
Speaker 3: in the flesh or is it done sort of, there's
Speaker 3: a lot more of it.
Speaker 2: It's done remotely. They discovered that little handy technique during
Speaker 2: during the pandemic, and then we went, why don't we
Speaker 2: do this all the time. It's kind of a lot
Speaker 2: easier and it's a lot less confronting.
Speaker 3: Actually, yeah, I imagine that would be, because that's half
Speaker 3: the thing. You take the heat out of it. When
Speaker 3: you've got an adjudicator who's down the phone line.
Speaker 2: And everyone has to be can be a lot more
Speaker 2: complicated though in terms of because sometimes there's a lot
Speaker 2: of paper we're involved and you know, here's my copy
Speaker 2: of this, and you know, so, yeah, it can be
Speaker 2: more complicated, and you've you've got to be really organized,
Speaker 2: and you've got to be good at making your case.
Speaker 2: The adjudicator is a pretty good at being balanced. You
Speaker 2: know that they're accustomed to having a bit of everything
Speaker 2: come before them. You get some interesting decisions out of
Speaker 2: them occasionally. But I can couldn't cut both ways. Really.
Speaker 3: Yeah, Look, we'd love to hear from you, just if
Speaker 3: you are a renter, or actually even if you're a landlord. Actually,
Speaker 3: have you ever been asked for a reduction, and what's
Speaker 3: your approach being to it. What's the best way to
Speaker 3: negotiate your rent? If you think that maybe you've got
Speaker 3: a bit of a room to wiggle, or because I
Speaker 3: think if you look, if you make a cheeky offer,
Speaker 3: then see you later. So I think there's no such
Speaker 3: thing as there wouldn't be any point in making anything
Speaker 3: other than a reasonable offer. But you can add your
Speaker 3: comment on that, Helen. Just as the music playing before
Speaker 3: we go to the break, A big.
Speaker 2: Fan of the reasonable offer me.
Speaker 3: Okay, we'll be back in just a moment. It's twenty
Speaker 3: two past four News Talk z B inside a clean instance.
Speaker 8: Thinne and welcome back to the Weekend Collective.
Speaker 3: This is one road you show what your calls on
Speaker 3: eight hundred eighty ten eighty or text nine two nine too.
Speaker 3: We're talking about how do you go about negotiating a
Speaker 3: rent reduction? Look, possibly it's not the easiest game to
Speaker 3: play right now, given the rents have gone down, but
Speaker 3: just to put it in perspective, only five bucks to
Speaker 3: six hundred and forty five a week. But you might
Speaker 3: be one of those ones who you know on a
Speaker 3: six hundred and forty five property. You're you thought I
Speaker 3: wouldn't need the property and you're paying seven hundred bucks.
Speaker 3: You want to have a chat with the landlord about it?
Speaker 3: How do you go about it?
Speaker 7: Oh?
Speaker 3: Eight hundred eighty ten eighty right, let's go to some
Speaker 3: calls Rod. Hello, I can't hear Rod for some reason,
Speaker 3: so we just need to hound right, right, So I
Speaker 3: just start again. Sorry, we just had a right block.
Speaker 6: So I've been alan ord, been there for some time,
Speaker 6: well aware that much rather have my properties tenanted. The
Speaker 6: losses that you do between tendencies, between tendencies cannot be
Speaker 6: quite significant, particularly compared to any rein increase that might
Speaker 6: be achieved. So I have very good tenants and one
Speaker 6: on one properly owned. They had been there for over
Speaker 6: two years, and they wanted to do some things, mind
Speaker 6: the things inside which I'm entry to do coming to them. Okay,
Speaker 6: that's fine, but we need to look at the rent
Speaker 6: and so my sugistan to them was you have a
Speaker 6: look at rents in the area, what you think you
Speaker 6: can pay, and then we'll talk about So two or
Speaker 6: three weeks later they said, okay, we thought about it.
Speaker 6: We think we can afford thirty dollars a week. I
Speaker 6: had in mind that I was going to ask for
Speaker 6: forty dollars a week.
Speaker 3: Well, this is a non crise.
Speaker 6: You're talking about an increase. Yeah, that they were aware that,
Speaker 6: you know, there's been signaltt increases in terms of insurance
Speaker 6: and rates. So I said, okay, if that's you're comfortable
Speaker 6: with that, then I would accept that. Thank you. I
Speaker 6: thought they were very lucky because pretty soon after that
Speaker 6: I would monitor Bodom lodgment with Bond Center, which has
Speaker 6: got to be an indication of current rents, and at
Speaker 6: that point the property was in number of bedrooms, et
Speaker 6: cetera in that area another forty dollars, so forty plus
Speaker 6: thirty seventy dollars more right rents in that area. So
Speaker 6: they were lucky to negotiate a reasonable price quickly and
Speaker 6: therefore avoid me reviewing it at an even higher amount,
Speaker 6: which I thought would have been equitable market.
Speaker 3: I guess it's sounded like it all went reasonably well
Speaker 3: as a negotiation because you both were trying to understand
Speaker 3: each other's position.
Speaker 6: Is that right correct?
Speaker 7: Yeah?
Speaker 6: I mean I don't I know others who think they
Speaker 6: should put in every year. I don't see what it is.
Speaker 6: Certainly in terms of the costs that have come through Untald,
Speaker 6: nothing that's in my control in the last three through
Speaker 6: three or four years, saying that the rents are significantly
Speaker 6: low compared to we started out.
Speaker 3: Yeah, Actually, you know the question that comes out of
Speaker 3: all this in a way, and you've probably reflected that
Speaker 3: a bit by accepting a lower increase than you're looking for.
Speaker 3: How much is a good tenant actually worth? How do
Speaker 3: you quantify? I think that's the that's the big question,
Speaker 3: because I think much more it's a lot.
Speaker 6: Isn't it much more than trying to squeezed another twenty
Speaker 6: or three dollars we out in one go. The time,
Speaker 6: in my opinion, to go to a bit harder with
Speaker 6: read is when a tendency changes. And I've said that
Speaker 6: there's a costly process changing tenancies.
Speaker 3: Actually that is that is I think through that call
Speaker 3: with Rod Helen, that is the question, isn't it? Because
Speaker 3: all it boils down to is what is a good
Speaker 3: tenant worth? And if your property is something that's quite
Speaker 3: precious to you and you don't want to have to
Speaker 3: worry about chasing people for the extra costs of repairs
Speaker 3: or something, or what is a good tenant worth?
Speaker 2: That's well, a bad tenant can be catastrophically expensive, But
Speaker 2: it comes down to whether or not do you think
Speaker 2: there's another nice fish in the sea. How hard or
Speaker 2: easy is it to find good tenants? And that's an
Speaker 2: interesting it's a question that Tony Alexander asked and his
Speaker 2: regular column which is published on one where you know,
Speaker 2: they ask how asked land to rate how much easier
Speaker 2: is it to find good tenants than it used to be?
Speaker 2: And they you know, the negatives outweigh the positives, And
Speaker 2: at the moment more landlords are saying it's harder to
Speaker 2: find good tenants than I think we've seen in that
Speaker 2: reading for a while.
Speaker 3: Actually, yeah, And I mean it's a very broad question
Speaker 3: is what is a good tenant worth? Of course, but
Speaker 3: it depends on the property and the rent and all
Speaker 3: that sort of thing. But I guess how many weeks
Speaker 3: rent is a good tenant worth? In terms of negotiating,
Speaker 3: you know, if you're looking like if I'm going to
Speaker 3: I mean, I don't know how you budgets as a landlord.
Speaker 3: As an investor, some people will budget on the idea
Speaker 3: that they're going to have it tenanted fifty two weeks
Speaker 3: of the year. But that's alltalistic.
Speaker 2: Yeah, you've got to expect to have a couple of weeks,
Speaker 2: but you've got to budget your numbers on having at
Speaker 2: least a couple of weeks. Wagon If you don't have that,
Speaker 2: then great, that is that's an upside, but you know
Speaker 2: you've got to anticipate that. Therefore, you know, if you
Speaker 2: think you might have up to two or four weeks rent,
Speaker 2: that's what a good tenant, that's what a good home
Speaker 2: occupy is worth to you. A couple of weeks to
Speaker 2: or three weeks rent.
Speaker 3: Yeah, so, and of course it depends on the market.
Speaker 3: But if the problem is finding a good tenant, then
Speaker 3: then I yes, yeah, there's some room to move and
Speaker 3: you and you would happily move if you think you
Speaker 3: can get someone in there for a while.
Speaker 2: Yeah, Like a good property will generally always rent if
Speaker 2: it's well kept and desirable. But there is again, having
Speaker 2: had tenants over the years, I will go a long
Speaker 2: way to keep a good tenant and a property. And
Speaker 2: we saw it during the pandemic the business hose running
Speaker 2: at the time. We had loads of occupiers who had
Speaker 2: to come to us and say, you know, it's lockdown.
Speaker 2: I've got literally six dollars left after I pay the rent.
Speaker 2: Is there anything the landlord can do? And one hundred
Speaker 2: percent of the landlords we went to came to the party,
Speaker 2: and we're generous and human and made generous offers, looked
Speaker 2: after their tenants. I think I thought was showed the
Speaker 2: caliber of New Zealanders.
Speaker 3: And I think I also think that it's good to
Speaker 3: hear that that's the bulk of the behavior of everyone,
Speaker 3: because a lot of the time, well I think that
Speaker 3: because you get so much contentious stuff introduced all in
Speaker 3: the name of politics, and you can look at other
Speaker 3: issues in society, including race as well, but it seems
Speaker 3: that that a lot of the time, the conversation seems
Speaker 3: to want us to decide who are the baddies and
Speaker 3: who are the goodies, when in fact, you know there
Speaker 3: are bad people in life on every in every every
Speaker 3: part of the spectrum, but the average. In fact, that's
Speaker 3: almost a good argument for having a landlord who you
Speaker 3: have a direct relationship with, because if you are a
Speaker 3: good tenant, then you are having a tough time and
Speaker 3: you talk to that landlord, then the human relationship is
Speaker 3: probably the one that wins out, isn't it.
Speaker 4: Yeah, I would hope.
Speaker 2: That the good property managers would do the same and
Speaker 2: would actually advocate for a good ten in those circumstances
Speaker 2: as well. And maybe I'm barst having run what I
Speaker 2: think was a good property management business. We're used to
Speaker 2: do promoters net promoters care surveys with our home occupiers,
Speaker 2: and resoundingly you had something like a thought an incredibly
Speaker 2: high rating from the people who are occupying the homes
Speaker 2: we managed because we saw them as our customers.
Speaker 3: Well. Actually, the other thing is as a property manager,
Speaker 3: I mean you are having a lot more to do
Speaker 3: with the people who are in the property and the
Speaker 3: person who owns it with both.
Speaker 2: Yeah, you do, you do. If you're doing a job properly,
Speaker 2: you're communicating with both sides of the equation. But you
Speaker 2: have customers and your customers customers, and it's critical they
Speaker 2: actually have a good relationship with both of them.
Speaker 3: You're welcome to give us a call on that if
Speaker 3: you've got any If you've you've got your reckons on
Speaker 3: how you approach making sure that you're paying the right
Speaker 3: rent or receiving the right rent. If you're a landlord,
Speaker 3: I guess once you've tenanted it. One of the rules
Speaker 3: around are you.
Speaker 2: Only able to do that the twelve months?
Speaker 3: And where all wet with the.
Speaker 2: Sorry a maximum of a minimum of twelve months between
Speaker 2: rent increases?
Speaker 3: And where are we at with notice?
Speaker 2: Because I think it's still you.
Speaker 3: The notice provisions have remember you couldn't.
Speaker 2: Actually I don't think they have. They've announced. I think
Speaker 2: that the tenancy build change it has been introduced, but
Speaker 2: I don't believe it's pasted.
Speaker 3: Ye'd okay?
Speaker 6: Right?
Speaker 3: Because there is another thing we want to talk about,
Speaker 3: and it's hopefully it's nothing, not a major subject in
Speaker 3: terms of the number of properties that are actually in
Speaker 3: this situation. Because I remember the days we'd opened the
Speaker 3: property press, or back in the days.
Speaker 2: You remember the days of the property press.
Speaker 3: It's a long time ago, back twenty years ago, but
Speaker 3: there would be a black and white section of the
Speaker 3: paper and you could almost tell how the market was
Speaker 3: doing was how many black and white pages there were,
Speaker 3: And there was a time when there were a lot
Speaker 3: being more sales. And the question is, I guess, is
Speaker 3: a mortgage sale one way of getting a bargain or
Speaker 3: is it? I asked that looking at you going what
Speaker 3: youre giving that look like you idiot. Of course, it's
Speaker 3: not that simple.
Speaker 2: I've gotta get to got to get a poker face.
Speaker 3: Yeah, But mortgage sales, I mean, of course, I think
Speaker 3: the whole thing, the attitude of the market towards more
Speaker 3: mortgage sales has changed since twenty years ago anyway, because
Speaker 3: the last thing banks want to do, last thing anyone
Speaker 3: wants is a mortgage sale. But I think now the banks,
Speaker 3: my just casual observation would be that they really try
Speaker 3: their hardest to keep that property in the hands of
Speaker 3: the person who owns it.
Speaker 2: They try to avoid them because for the simple reason
Speaker 2: it is incredibly it is very value destractive. Ultimately, if
Speaker 2: the thing goes to if a property goes to a
Speaker 2: mortgage sale, it means that the relationship between the bank
Speaker 2: and the mortgage has broken down completely and it's the
Speaker 2: only way to actually achieve realization or you know, tidying
Speaker 2: up alone. And there's a real taint that comes to
Speaker 2: them because people expect that they're going to get a
Speaker 2: bargain because the mortgageaw gives so few warranties on sale,
Speaker 2: so of course there is a price reduction that a
Speaker 2: buyer would expect, but they can be incredibly complicated.
Speaker 3: It does feel like there's an element of a gamble
Speaker 3: and buying any mortgage cell. Mortgage cell, wouldn't they be there's.
Speaker 2: Definitely risk here. You are, you are getting your you
Speaker 2: know you're buying sometimes sight unseen and you're buying accepting
Speaker 2: whatever you find when your dad is as wear as
Speaker 2: So you want to be an experienced sort of an
Speaker 2: investor and know what you're looking at before you decide
Speaker 2: to jump. And I wouldn't rock up to one of
Speaker 2: those on a Sunday afternoon and buy one just on
Speaker 2: a casual wind.
Speaker 3: Put in that way, No, and I rest assured. We
Speaker 3: do not have a mortgy property sale property as our
Speaker 3: property the week either. It's although if it was a
Speaker 3: mortgage sale, it looks so good you might take a
Speaker 3: punt on getting a bit of a discount on it
Speaker 3: because it's kind of price the property of the week.
Speaker 3: It's a have you seen the property of the week.
Speaker 3: Oh it's a ripper, isn't it. Anyway, we're going to
Speaker 3: be back. We've got a caller waiting, so we'll be
Speaker 3: back in just a tick. You can give us a
Speaker 3: call on that. Have you ever bought a mortgage mortgage
Speaker 3: at a mortgage sale, and did you learn any lessons
Speaker 3: or was it just the best thing you ever did?
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Speaker 1: Years, property, parenting, politics plus health, money and the week's
Speaker 1: figure issues. It's Home on the Weekend, connected with Tim Bebridge,
Speaker 1: Use TALKSB.
Speaker 3: Yes, News Talks EB and my guest is held on
Speaker 3: a Sullivan from Velocity. We're talking about a couple of things,
Speaker 3: mortgage sales, the dos and don'ts or just avoid like
Speaker 3: the plague. I don't know, obviously people don't. Otherwise there
Speaker 3: wouldn't be such a thing as mortgage sales because there's
Speaker 3: aways going to be a buyer, but also negotiating a
Speaker 3: rent change if you think maybe you're paying too much.
Speaker 3: Eight hundred and eight Francis Hello, Oh hello, how are
Speaker 3: you doing? What would you like to what would you
Speaker 3: like to ask or comment on?
Speaker 4: Oh? Yeah, you know, I just well, to be honest,
Speaker 4: I'm on my way home from work and I just
Speaker 4: thought i'd check in with a rent ease. Well a
Speaker 4: rent rente Is that the right one? I don't know,
Speaker 4: but I just thought i'd check in with a renterers
Speaker 4: perspective on all of this, if that's okay.
Speaker 3: So I didn't quite catch that last one. Tenants is
Speaker 3: a good way to put it with a tenants or what?
Speaker 4: Well, yeah, I'm a I'm a tenant. I've been flatting.
Speaker 4: I'm I'm twenty seven years old right now, and I've
Speaker 4: been flatter since I was about nineteen, and I just
Speaker 4: thought i'd check in with you know, a renter's point of.
Speaker 3: View on yeah, and what's your point of view?
Speaker 4: Well, my point of view is a good landlord is
Speaker 4: worth their weight in goals.
Speaker 3: Honestly, Oh so on the other side of the equation,
Speaker 3: it's not about the value of a tenant, but a.
Speaker 6: Good landlord, yes, exactly.
Speaker 4: And you know a good landlord is worth their weight
Speaker 4: in gold because you know, I've had my fair share
Speaker 4: of awful landlords. I've had one who've come in and
Speaker 4: rifled through my underwear jaw when I wasn't at home.
Speaker 4: And yeah, it's it's been a whole learning curve.
Speaker 3: Does landlord, sorry, does that just does that just change
Speaker 3: the way you you behave as a tenant or just
Speaker 3: I don't know, it shouldn't change your way of behaving.
Speaker 3: I'm guessing everyone just behaves themselves. But has it had
Speaker 3: an impact on the way you approach I don't know,
Speaker 3: the way you treat the property and and you're relationship
Speaker 3: with the landlord.
Speaker 4: Actually it has slightly changed the way I behave in
Speaker 4: the property, just you know, keeping things that I wouldn't
Speaker 4: want my landlords to see, not like nothing, you know,
Speaker 4: degrading or anything, just keeping my undies out of the
Speaker 4: way and things like that.
Speaker 3: Yeah, that's good. It's good to keep the undies out
Speaker 3: of the way. So I wasn't quite sure where that
Speaker 3: conversation with Francis was going there. But anyway, no need
Speaker 3: to comment to Helen because we've got another call to go.
Speaker 7: Jeremy, Hello, Yeah, you know, I just I thought i'd
Speaker 7: tell you that year in the last even years, we've
Speaker 7: bought twelve properties that have them a been more than
Speaker 7: details and their ladies right. Is complicated and all the
Speaker 7: switch properties we've made quite quite good profits out of them.
Speaker 7: That is complicated. In terms of a couple of them,
Speaker 7: I had to pay the owners to get out of
Speaker 7: the properties. Another one was half down, but we were
Speaker 7: able to still make money out of it. And so
Speaker 7: there is there is it can't be problems, but then
Speaker 7: there can't can't. Then you also can get situations where
Speaker 7: it's empty the gold and you can just take it
Speaker 7: over and then do it up.
Speaker 3: When you say when you say pay the owners to
Speaker 3: get out of the property.
Speaker 2: You don't guaranteed vacant position when they're you're not guaranteed
Speaker 2: vacant positions, so you may find it comes with someone.
Speaker 7: Yeah, you just take it over and if there's someone
Speaker 7: in there, knock on the doors. Sometimes it isn't even
Speaker 7: the owner, it's just someone living there. I can get
Speaker 7: a lady who's living in one of my houses with
Speaker 7: a dog and she just stayed there. Well, I did
Speaker 7: it up, and then when we're I was going to
Speaker 7: put on the market, I had to up here to
Speaker 7: get out of it. Ended paying this money back.
Speaker 3: Sort of it's almost like a bribe. Is that almost
Speaker 3: like a bribe in a way? I mean without sounding
Speaker 3: that a lisit.
Speaker 7: It's not that there's enough. It's just business and it's
Speaker 7: just people. I know some people excuse me of playing
Speaker 7: on other people's misfortunes, but if I didn't, there's plenty
Speaker 7: of other people out here. I go to some of
Speaker 7: the mortgaging, so there's about twifty people here.
Speaker 3: Is he what made you buy your first mortgage property
Speaker 3: and a mortgage, you know, abandoned property or a mortgage.
Speaker 7: Just because I was an investor. We with man, so
Speaker 7: we just do this on the site and so it
Speaker 7: came out pretty cheap. There was a half into our
Speaker 7: house antiquately and I bought up to thirty four thousand
Speaker 7: and then shipt to the house under house. Is it
Speaker 7: sold for three fifty about a year and a half later.
Speaker 3: Are you?
Speaker 7: You can do really well out of them, but you've
Speaker 7: got to pay text, You've got to be darst registered
Speaker 7: all that plabor because you can't do anan. Revenue will
Speaker 7: catch you. They will catch you if you do it
Speaker 7: without it. But I do also because I've got a
Speaker 7: proper background.
Speaker 3: So well, actually that was my next That was my
Speaker 3: next question is that it wouldn't be your first mortgage purchase,
Speaker 3: would not have been your first real estate purchase. I'm guessing.
Speaker 7: We've done about beady years we've been together. But yeah, no,
Speaker 7: it isn't for the faint hearted. I know of some
Speaker 7: people who bought two houses in it and prevent town
Speaker 7: and saying people and they couldn't get them out in
Speaker 7: the end they had to sell it back to the owners.
Speaker 7: Had a product.
Speaker 3: Yeah, okay, hey, Jeremy, sorry, we just got a bit
Speaker 3: of a dodgy line there. I just had to wrap
Speaker 3: it up there. But yeah, it's a bit of a
Speaker 3: cautionary tale, isn't it.
Speaker 2: Absolutely if you know what you're doing. And Jeremy sounds
Speaker 2: like he's got all the skills that you need for
Speaker 2: an endeavor like that.
Speaker 3: Actually, the relocatable homes is an interesting one, but that's
Speaker 3: probably a whole nother, whole other of course, funnily enough
Speaker 3: that I did look at that for my first house,
Speaker 3: did you know, I don't know what. Twenty five years ago,
Speaker 3: I didn't actually do it. I thought about a lot
Speaker 3: of things happened.
Speaker 2: I looked at baring was absolute little shocker of a
Speaker 2: door upper and a good friend of mine sat Helen.
Speaker 2: Getting an A in third form woodwork is not qualification
Speaker 2: you need for doing and doing wrapper.
Speaker 3: It's like, yeah, good point, yeah, good, Okay, Right, we'll
Speaker 3: be back in just a moment. It's ten and a
Speaker 3: half minutes to five news talk, saidb Yeah, so welcome
Speaker 3: back to the One Roof radio show. My guest is
Speaker 3: Helena Sullivan from Velocity. You can check their workout on
Speaker 3: velocity dot co dot nz.
Speaker 7: Is that right?
Speaker 2: How we tack out the one roof website because we
Speaker 2: are the one roof data partner.
Speaker 3: That's the one.
Speaker 2: All that lovely datas comes from us.
Speaker 3: Excellent, that's the one right now though, the day that
Speaker 3: we care about is the fact that it is seven
Speaker 3: minutes to five news Talk, said b.
Speaker 1: The one roof property of the week on the Weekend
Speaker 1: Collective and.
Speaker 3: The one roof property of the week is Look, there
Speaker 3: were always a ripper, so I don't know why. So
Speaker 3: I don't know why I use the hyperbole because you
Speaker 3: know it's always going to be a stunning property or
Speaker 3: a very interesting one. This is an well it says.
Speaker 3: It offers one hundred and eighty degree views of lake Walker, Tippoo,
Speaker 3: the remarkables Mountain Range and Cecil Peak. The home perfectly
Speaker 3: integrates indoor and outdoor living, featuring expansive tilled a tiled
Speaker 3: patios ideal for hosting gatherings. It's a modern, open planned kitchen. Look,
Speaker 3: it's a new, beautiful home. It's in four Lynch Lane
Speaker 3: in Queenstown. I think it has a value of around
Speaker 3: well the one roof. I'm struggling with the one roof
Speaker 3: one roof estimate only because I know two point six
Speaker 3: million dollars is a lot of money. But Helen, you
Speaker 3: have seen the property and the views. I mean, it
Speaker 3: just looks absolutely spectacular, doesn't it.
Speaker 2: The views are stunning. You would be engrave danger. I
Speaker 2: think of spending most of your time just gazing vacantly
Speaker 2: out the window.
Speaker 3: Yeah, I mean.
Speaker 2: Sitting in the hot tub gazing blissfully at those snowclad
Speaker 2: mountains what called Gin and Tonic in here.
Speaker 3: Yes. So, in fact, when I looked at the listing,
Speaker 3: I do think it's said there was an asking price
Speaker 3: of four point something millions, So I think we might
Speaker 3: be there might be.
Speaker 2: Yeah, No, I think the indicators more towards the three
Speaker 2: million mIRC. One of the that the indication does come
Speaker 2: with a medium confidence, which is kind of suggesting that
Speaker 2: there's I mean, you know, the challenge is that those
Speaker 2: are all algorithmically determined and the mathematics can't see their view.
Speaker 3: Yeah, it is absolutely spectacular, isn't it. Actually? You know,
Speaker 3: the thing is, if you just about all of Queen's Town,
Speaker 3: there are not many places that don't have some sort
Speaker 3: of reason or viewer is there?
Speaker 2: That's true. It is just a pretty magical little spot.
Speaker 3: So anyway, thanks for thanks for joining us. You're going
Speaker 3: to pop down to Queen's and make an offer on that.
Speaker 2: I am when the twenty six millions and I Hamish
Speaker 2: Walker will be getting.
Speaker 3: Actually, I must say that does form part of my
Speaker 3: business plan as well, given the twenty six mal is
Speaker 3: it sex male? It's a snip. Thanks for Johnny us Allen,
Speaker 3: always a pleasure to thank you for having me, and
Speaker 3: as Helen says, of course, if you want to check
Speaker 3: out the work that Velocity does, go and look at
Speaker 3: the data and all the analysis and the information that's
Speaker 3: on one roof, the one roof, one roof, dot co
Speaker 3: dot nz And as I say, of course this because
Speaker 3: this is the one roof radio show. We'll be back
Speaker 3: with the parent squad next. This is news Talk z B.
Speaker 3: It's coming out to four minutes to five.
Speaker 1: For more from the weekend collective, listen live to News
Speaker 1: Talk sed BE weekends from three pm, or follow the
Speaker 1: podcast on iHeartRadio