1 00:00:07,133 --> 00:00:10,453 Speaker 1: You're listening to the Saturday Morning with Jack Teams podcast 2 00:00:10,573 --> 00:00:13,533 Speaker 1: from newstalks'b recording. 3 00:00:13,093 --> 00:00:15,613 Speaker 2: To eleven non news talks. He'd be ed McKnight is 4 00:00:15,613 --> 00:00:18,293 Speaker 2: our personal finance expert from Obi's Partners. He's here with 5 00:00:18,373 --> 00:00:18,973 Speaker 2: us this morning. 6 00:00:18,973 --> 00:00:20,893 Speaker 3: Good morning, great to be here, Jack. 7 00:00:20,933 --> 00:00:23,053 Speaker 2: Are you counting down the days? Are you? Are you 8 00:00:23,093 --> 00:00:24,413 Speaker 2: a Christmas spirit kind of. 9 00:00:24,333 --> 00:00:28,253 Speaker 3: Guy, son, I've been counting it down since mid November. 10 00:00:28,293 --> 00:00:31,573 Speaker 3: The tree is up, that ignog is ordered, and my 11 00:00:31,693 --> 00:00:33,613 Speaker 3: family aren't going to be leaving my house a couple 12 00:00:33,613 --> 00:00:35,253 Speaker 3: of kilos heavier come Christmas. 13 00:00:35,613 --> 00:00:39,013 Speaker 2: I'm pleased to hear ignog. See do you actually do ignog? 14 00:00:39,013 --> 00:00:39,253 Speaker 3: It is that? 15 00:00:39,253 --> 00:00:40,253 Speaker 2: Are you actually into ignock? 16 00:00:40,933 --> 00:00:43,093 Speaker 3: Yeah, but we'll we'll go and buy it. Right, We're 17 00:00:43,133 --> 00:00:45,933 Speaker 3: not going to be making that good stuff ourselves because 18 00:00:46,173 --> 00:00:48,853 Speaker 3: my grandma never taught me how to do that, you see, Jack. 19 00:00:48,813 --> 00:00:52,173 Speaker 2: No, fair enough. I'm I'm into egnog in a big way. 20 00:00:52,213 --> 00:00:54,053 Speaker 2: And when I lived in the States, I used to 21 00:00:54,133 --> 00:00:56,493 Speaker 2: love a cheeky little bit of eggnog. But you just 22 00:00:56,493 --> 00:00:58,493 Speaker 2: don't see this much in New Zealand. I suppose because 23 00:00:58,493 --> 00:01:02,133 Speaker 2: it's warm, right, we don't necessarily want hot drinks. But yeah, 24 00:01:02,133 --> 00:01:03,933 Speaker 2: I don't mind a bit of eggnog, so I'm pleased 25 00:01:03,933 --> 00:01:07,173 Speaker 2: to hear that I'm not the only one anyway, No, 26 00:01:07,293 --> 00:01:08,613 Speaker 2: you were going to say something wrong. 27 00:01:08,613 --> 00:01:09,773 Speaker 3: I was going to say, you could always have an 28 00:01:09,773 --> 00:01:12,453 Speaker 3: ice jack that'll keep you killing a nice summer's day. 29 00:01:12,533 --> 00:01:13,533 Speaker 2: That's true. That's true. 30 00:01:13,693 --> 00:01:13,893 Speaker 1: Right. 31 00:01:14,293 --> 00:01:16,333 Speaker 2: Is it still a good idea to buy the worst 32 00:01:16,333 --> 00:01:18,773 Speaker 2: house on the best street. It always feels like that 33 00:01:18,933 --> 00:01:22,573 Speaker 2: is the kind of age old advice for anyone looking 34 00:01:22,573 --> 00:01:24,373 Speaker 2: for a bit of capital growth in their property. 35 00:01:25,493 --> 00:01:27,533 Speaker 3: Well, that is one of the ideas that you're often here. 36 00:01:27,573 --> 00:01:29,653 Speaker 3: And I wanted to understand where did this come from 37 00:01:29,653 --> 00:01:31,653 Speaker 3: and is it still a good idea? And I suppose 38 00:01:32,333 --> 00:01:34,493 Speaker 3: the idea is that if you buy quite a cheap 39 00:01:34,573 --> 00:01:36,773 Speaker 3: house and a really nice suburb and then you do 40 00:01:36,893 --> 00:01:40,013 Speaker 3: it up, the kind of feeling for how expensive that 41 00:01:40,053 --> 00:01:43,693 Speaker 3: property could become is quite high, so maybe you'll get 42 00:01:43,693 --> 00:01:46,293 Speaker 3: some good gains there. I suppose. The other thing, if 43 00:01:46,333 --> 00:01:48,093 Speaker 3: you're buying a house for yourself to live, and you 44 00:01:48,133 --> 00:01:50,733 Speaker 3: can always change the house, or at least do it up, 45 00:01:50,733 --> 00:01:53,653 Speaker 3: but you can't really change the location. Now I've dug 46 00:01:53,693 --> 00:01:56,173 Speaker 3: in a little bit more into the numbers, and one 47 00:01:56,213 --> 00:01:59,493 Speaker 3: of the questions I had is, well, do house prices 48 00:01:59,613 --> 00:02:03,933 Speaker 3: go up faster in some of those hiring suburbs. Well, 49 00:02:03,933 --> 00:02:06,213 Speaker 3: if we look at some of the most expensive suburbs 50 00:02:06,213 --> 00:02:09,253 Speaker 3: and country like Herne Bay, over the last twenty five years, 51 00:02:09,253 --> 00:02:12,613 Speaker 3: house bruces have gone up there seven point three percent 52 00:02:12,693 --> 00:02:16,493 Speaker 3: per year. In ode Ark or remu Era, both really 53 00:02:16,573 --> 00:02:19,533 Speaker 3: nice suburbs, house bruce has gone up over the same 54 00:02:19,573 --> 00:02:22,493 Speaker 3: period about six point seven percent. But what might surprise 55 00:02:22,853 --> 00:02:24,973 Speaker 3: a lot of people is if we look at a 56 00:02:25,013 --> 00:02:28,933 Speaker 3: suburb like Otayler, which is a more lower socioeconomic suburb. 57 00:02:29,133 --> 00:02:32,293 Speaker 3: It's nice, but it's not as flash. House prices there 58 00:02:32,373 --> 00:02:35,973 Speaker 3: actually went up faster over the last twenty five years 59 00:02:36,253 --> 00:02:39,333 Speaker 3: than some of those nicer suburbs like Odak and remue Era, 60 00:02:39,933 --> 00:02:42,253 Speaker 3: at six point nine percent a year. Does that surprise 61 00:02:42,293 --> 00:02:42,973 Speaker 3: you would all, gene? 62 00:02:43,093 --> 00:02:45,653 Speaker 2: Yeah. I mean it's funny because usually we kind of 63 00:02:45,653 --> 00:02:49,093 Speaker 2: average out across regions or cities. But you know, I 64 00:02:49,573 --> 00:02:53,413 Speaker 2: can imagine that in some of those suburbs like Ortata, 65 00:02:53,653 --> 00:02:55,653 Speaker 2: there might be more demand for housing. You know, the 66 00:02:56,013 --> 00:02:58,573 Speaker 2: population increase in those kinds of spaces will have increased 67 00:02:58,613 --> 00:03:01,773 Speaker 2: a lot. And whereas in some of those more affluent suburbs. 68 00:03:02,533 --> 00:03:05,293 Speaker 2: Perhaps is that, you know, the land values have increased 69 00:03:05,293 --> 00:03:08,053 Speaker 2: a lot, whereas the actual number of people living in 70 00:03:08,053 --> 00:03:10,213 Speaker 2: the suburb has increased by so much. So maybe there 71 00:03:10,213 --> 00:03:13,453 Speaker 2: are kind of different forces at play in different suburbs. 72 00:03:13,853 --> 00:03:15,853 Speaker 3: That's definitely the case. The other thing I'd say is 73 00:03:15,893 --> 00:03:19,413 Speaker 3: you can't take that idea of buy the best at 74 00:03:19,493 --> 00:03:23,173 Speaker 3: worst house rather in the best street, because if you 75 00:03:23,253 --> 00:03:27,213 Speaker 3: take that literally, I found the most expensive street in 76 00:03:27,253 --> 00:03:30,213 Speaker 3: New Zealand. It's in Herne Bay, which might not surprise you, 77 00:03:30,253 --> 00:03:33,613 Speaker 3: the cheapest house on that best street quote unquote best 78 00:03:33,613 --> 00:03:38,373 Speaker 3: street still cost you three point six seven million dollars. 79 00:03:38,813 --> 00:03:42,733 Speaker 3: So buying the worst house on the best street probably 80 00:03:42,813 --> 00:03:44,813 Speaker 3: is an adoption for most of us. 81 00:03:44,973 --> 00:03:47,893 Speaker 2: Yeah, that's something, isn't it. Oh my gosh, three point 82 00:03:47,973 --> 00:03:50,973 Speaker 2: sixty seven million. So when might it be a good 83 00:03:51,013 --> 00:03:54,053 Speaker 2: idea to go with the so called worst house on 84 00:03:54,093 --> 00:03:54,573 Speaker 2: the best street. 85 00:03:55,173 --> 00:03:56,733 Speaker 3: Well, I think it can be a good idea if 86 00:03:56,773 --> 00:03:59,453 Speaker 3: you're going to live in the property, because, especially if 87 00:03:59,493 --> 00:04:02,053 Speaker 3: you're in one of our main centers. The school zones 88 00:04:02,173 --> 00:04:05,733 Speaker 3: often are zoned, and typically the schools that are thought 89 00:04:05,973 --> 00:04:09,773 Speaker 3: to be better often are in those more affluent zones. 90 00:04:10,013 --> 00:04:12,253 Speaker 3: So Let's say you've got a couple of kids our 91 00:04:12,293 --> 00:04:14,813 Speaker 3: primary school age. Now you're thinking about where they're going 92 00:04:14,853 --> 00:04:17,693 Speaker 3: to go to high school. It might be an idea 93 00:04:17,813 --> 00:04:20,173 Speaker 3: to compromise a little bit on the house to get 94 00:04:20,173 --> 00:04:23,413 Speaker 3: in the quote unquote better area. The other one is 95 00:04:23,453 --> 00:04:25,933 Speaker 3: if you are going to renovate it to do it up, 96 00:04:26,053 --> 00:04:28,733 Speaker 3: and you have the money to buy it and do 97 00:04:28,813 --> 00:04:31,173 Speaker 3: it up. Whereas I think if you're a long term 98 00:04:31,293 --> 00:04:33,693 Speaker 3: buy and hold investor, like a lot of people I 99 00:04:33,773 --> 00:04:37,013 Speaker 3: work with, you're probably going to buy a house that's 100 00:04:37,053 --> 00:04:40,253 Speaker 3: a bit cheaper, not the three point sixty seven million dollars, 101 00:04:40,493 --> 00:04:44,693 Speaker 3: because typically the more affordable the house, the better the 102 00:04:44,693 --> 00:04:48,213 Speaker 3: rental yield. Is. If we think about those really expensive houses, 103 00:04:48,573 --> 00:04:50,613 Speaker 3: there aren't that many people who are going to rent 104 00:04:50,613 --> 00:04:53,493 Speaker 3: a three point seven million dollar house or could afford to, 105 00:04:53,533 --> 00:04:55,693 Speaker 3: and because of that, the rental yield is pretty low. 106 00:04:56,053 --> 00:04:59,013 Speaker 2: Yeah that makes total sense. Yeah, that makes total sense. Hey, 107 00:04:59,533 --> 00:05:01,613 Speaker 2: thank you, Ed. And that's really interesting about those different 108 00:05:01,613 --> 00:05:03,533 Speaker 2: suburbs as well, So thank you for digging into that 109 00:05:03,533 --> 00:05:06,013 Speaker 2: for us. Have a wonderful Christmas and summer break. Why 110 00:05:06,013 --> 00:05:06,373 Speaker 2: don't you. 111 00:05:06,973 --> 00:05:09,253 Speaker 3: I'll be thinking about you as a chunk packed. 112 00:05:09,053 --> 00:05:12,293 Speaker 2: The the Ice s Dignog, The Ice Dignog. Very good, 113 00:05:12,333 --> 00:05:14,333 Speaker 2: all right, thanks so much. We'll catch it in so 114 00:05:14,413 --> 00:05:16,853 Speaker 2: an Eve McKnight from Opie's partners. 115 00:05:16,853 --> 00:05:19,973 Speaker 1: For more from Saturday Morning with Jack Tame, listen live 116 00:05:20,053 --> 00:05:22,893 Speaker 1: to News Talks ed B from nine am Saturday, or 117 00:05:22,973 --> 00:05:24,853 Speaker 1: follow the podcast on iHeartRadio