1 00:00:00,600 --> 00:00:01,759 Speaker 1: Here the duplessy la. 2 00:00:01,840 --> 00:00:04,800 Speaker 2: Jeremy Williamson from Craig's Investment Partner says New Zealand's love 3 00:00:04,800 --> 00:00:07,200 Speaker 2: affair with property investing is coming to an end. He 4 00:00:07,240 --> 00:00:09,880 Speaker 2: spoke to Matt and Tyler earlier today and I. 5 00:00:09,840 --> 00:00:11,840 Speaker 3: Think of you know, when your kids playing past the 6 00:00:11,880 --> 00:00:16,439 Speaker 3: parcel and trading and buying and selling investment properties to 7 00:00:16,480 --> 00:00:18,439 Speaker 3: each other. Feels if it like that to me, where 8 00:00:18,840 --> 00:00:21,200 Speaker 3: you take a twenty dollar notes, you pass it around 9 00:00:21,280 --> 00:00:23,560 Speaker 3: the circle, it still comes back as a twenty dollar note, 10 00:00:23,600 --> 00:00:28,200 Speaker 3: doesn't it. The love affair we have with investment property 11 00:00:28,360 --> 00:00:29,800 Speaker 3: has the same sort of thing to it. 12 00:00:30,040 --> 00:00:32,160 Speaker 2: Jeremy says it's good for the country if investors starts 13 00:00:32,200 --> 00:00:35,159 Speaker 2: switching to more productive assets then property. Matt Ball is 14 00:00:35,200 --> 00:00:38,279 Speaker 2: the advocacy manager at the Property Investors Federation and with us, Hey, 15 00:00:38,320 --> 00:00:42,120 Speaker 2: Matt Hiever, do you reckon people are getting more savvy 16 00:00:42,159 --> 00:00:44,120 Speaker 2: with the shares and starting to switch their money away 17 00:00:44,159 --> 00:00:44,720 Speaker 2: from property. 18 00:00:46,120 --> 00:00:48,599 Speaker 1: I think there's definitely more choice and people are more 19 00:00:48,600 --> 00:00:50,680 Speaker 1: aware of the share option and key we say that's 20 00:00:50,720 --> 00:00:53,240 Speaker 1: contributed to that. But I don't think the love affair 21 00:00:53,280 --> 00:00:56,200 Speaker 1: with property is over. I think the property market is 22 00:00:56,360 --> 00:01:00,320 Speaker 1: changing thanks to some initiatives from the government, and I 23 00:01:00,320 --> 00:01:01,880 Speaker 1: think people will start to take a bit of a 24 00:01:01,920 --> 00:01:06,080 Speaker 1: different approach. I don't buy this whole property investment is 25 00:01:06,120 --> 00:01:09,160 Speaker 1: in the productive activity. I mean, if you buy in 26 00:01:09,280 --> 00:01:11,880 Speaker 1: trade shares, you're passing twenty bucks around, it's still twenty 27 00:01:11,880 --> 00:01:13,840 Speaker 1: bucks in the end of us. Just you're not actually 28 00:01:13,920 --> 00:01:16,960 Speaker 1: adding to productivity. Same if you do that with a house. 29 00:01:17,200 --> 00:01:19,880 Speaker 1: But if you treat property investing like a business, you 30 00:01:20,000 --> 00:01:22,560 Speaker 1: buy it for cash flow. You buy a property that 31 00:01:22,600 --> 00:01:25,120 Speaker 1: you can do up and add to. You've made a 32 00:01:25,120 --> 00:01:28,520 Speaker 1: better property, You've improved the property sector in New Zealand, 33 00:01:28,560 --> 00:01:31,960 Speaker 1: You've made our general housing quality and number go up. 34 00:01:32,640 --> 00:01:33,800 Speaker 1: That's a productive activity. 35 00:01:34,240 --> 00:01:35,680 Speaker 2: So how do you think it's going to change. How 36 00:01:35,760 --> 00:01:37,520 Speaker 2: is the approach to property investing changing? 37 00:01:39,319 --> 00:01:42,640 Speaker 1: I think this government and actually I don't think I know, 38 00:01:42,880 --> 00:01:45,920 Speaker 1: because this government has said very explicitly. Chris Bissit has 39 00:01:45,920 --> 00:01:49,200 Speaker 1: said very explicitly he thinks housing is too expensive in 40 00:01:49,200 --> 00:01:53,240 Speaker 1: New Zealand, both owner occupied and rental, and his government 41 00:01:53,320 --> 00:01:55,680 Speaker 1: is determined to change that. And if you look at 42 00:01:55,680 --> 00:01:58,880 Speaker 1: what they're doing, they've probably got at least a dozen 43 00:01:58,920 --> 00:02:02,639 Speaker 1: bits of legislation regulations on the books that are trying 44 00:02:02,680 --> 00:02:04,400 Speaker 1: to change the housing money. 45 00:02:04,440 --> 00:02:06,720 Speaker 2: But then why would I invest Why would I invest 46 00:02:06,760 --> 00:02:08,880 Speaker 2: in property if I know that this government is actively 47 00:02:08,880 --> 00:02:09,960 Speaker 2: trying to bring the price down. 48 00:02:10,720 --> 00:02:13,120 Speaker 1: Okay, so you're not going to make the easy capital gains. 49 00:02:13,480 --> 00:02:14,960 Speaker 1: So if you wake up one day and you go, oh, 50 00:02:14,960 --> 00:02:17,040 Speaker 1: I might put some money into a house that looks easy, 51 00:02:17,520 --> 00:02:19,959 Speaker 1: then forget it. That's not the sort of investor that's 52 00:02:19,960 --> 00:02:22,600 Speaker 1: going to do well in this market. But our members 53 00:02:22,760 --> 00:02:26,080 Speaker 1: around the country right now are getting out there and 54 00:02:26,160 --> 00:02:29,680 Speaker 1: are hunting down bargains. They are properties that they know 55 00:02:29,880 --> 00:02:32,240 Speaker 1: they can add value to, and that's how you can 56 00:02:32,400 --> 00:02:38,119 Speaker 1: make your money. No, not flipping think some people will. Yeah, 57 00:02:38,280 --> 00:02:40,639 Speaker 1: you can do it up and rent it. You can 58 00:02:40,680 --> 00:02:42,680 Speaker 1: do it up, rent it and hold it for a period, 59 00:02:42,760 --> 00:02:45,120 Speaker 1: which is what most of our members do. You can 60 00:02:45,160 --> 00:02:46,440 Speaker 1: make a good business out of that. 61 00:02:46,520 --> 00:02:49,680 Speaker 2: Okay, So you reckon. Just being passive is no longer 62 00:02:49,720 --> 00:02:51,520 Speaker 2: a solution. So you don't buy a nice rental and 63 00:02:51,560 --> 00:02:53,800 Speaker 2: then rent it out. You buy a crapo, you do 64 00:02:53,880 --> 00:02:55,320 Speaker 2: it up, you rent it out. That's how you make 65 00:02:55,360 --> 00:02:56,919 Speaker 2: your money, when you add value yourself. 66 00:02:58,120 --> 00:03:02,280 Speaker 1: Yeah, and that's always been a core y just buying 67 00:03:02,360 --> 00:03:04,200 Speaker 1: a place that has had all the work done to it, 68 00:03:04,240 --> 00:03:06,600 Speaker 1: that's got no potential. There is no upside to that 69 00:03:06,800 --> 00:03:10,040 Speaker 1: unless you're in the crazy twenty twenty market when you 70 00:03:10,040 --> 00:03:12,160 Speaker 1: could buy something one day and sell it the next 71 00:03:12,160 --> 00:03:14,560 Speaker 1: week for a profit. You know those days are gone. 72 00:03:15,040 --> 00:03:18,360 Speaker 1: Matt looks for value. Yeah, sorry, Karen. 73 00:03:18,480 --> 00:03:21,120 Speaker 2: On another subject altogether, which is my favorite subject to 74 00:03:21,120 --> 00:03:23,880 Speaker 2: discuss with you, which is the Healthy Home Standards. Any 75 00:03:24,480 --> 00:03:26,079 Speaker 2: any naughty landlord's been pinged. 76 00:03:28,240 --> 00:03:32,320 Speaker 1: It doesn't look like it's more than you, not more 77 00:03:32,360 --> 00:03:37,040 Speaker 1: than normal. Yeah. Maybe it is still one of the 78 00:03:37,080 --> 00:03:40,480 Speaker 1: top three issues that tenants bring before the tenancy Truvian 79 00:03:40,520 --> 00:03:43,480 Speaker 1: all day. So it is out there and penalties are worse. 80 00:03:44,400 --> 00:03:47,400 Speaker 2: Yeah, thanks, Matt, appreciate it. Matt Bull who is the 81 00:03:47,400 --> 00:03:49,960 Speaker 2: advocacy manager at the Property Investors Federation. Yet, Matt and 82 00:03:49,960 --> 00:03:51,920 Speaker 2: I have had Matt and I have had a little 83 00:03:52,160 --> 00:03:54,320 Speaker 2: little bit of cord it all back and forth about 84 00:03:54,320 --> 00:03:56,160 Speaker 2: this particular issue because I don't know if you remember, 85 00:03:56,240 --> 00:04:00,320 Speaker 2: but the rules, well nobody remembers because no one cares. 86 00:04:00,680 --> 00:04:03,720 Speaker 2: The Healthy Home Standards came in on the first of July, right, 87 00:04:03,760 --> 00:04:06,880 Speaker 2: and like there are I think I calculated that there 88 00:04:06,960 --> 00:04:10,200 Speaker 2: must be something in the vicinity of potentially as correct 89 00:04:10,200 --> 00:04:11,440 Speaker 2: me if I'm wrong, because it's off the top of 90 00:04:11,440 --> 00:04:13,600 Speaker 2: my head, but maybe three hundred thousand houses out there 91 00:04:13,800 --> 00:04:15,720 Speaker 2: that do not meet the standards, just judging by like 92 00:04:15,720 --> 00:04:17,440 Speaker 2: a kind of like a couple of surveys that you 93 00:04:17,480 --> 00:04:19,840 Speaker 2: mash together and try to work it out. Numbers will 94 00:04:19,839 --> 00:04:22,600 Speaker 2: be woful, like way off. But that's the best we've 95 00:04:22,600 --> 00:04:24,520 Speaker 2: got is that we know that there are tens of thousands, 96 00:04:24,520 --> 00:04:26,520 Speaker 2: if not more houses out there that do not meet 97 00:04:26,520 --> 00:04:30,240 Speaker 2: the standards. Anyway, I said, don't bother who cares. We've 98 00:04:30,279 --> 00:04:32,600 Speaker 2: got a ditch these standards because if you've got that much, 99 00:04:32,680 --> 00:04:35,479 Speaker 2: if you've got that many properties in breach of the standards, 100 00:04:35,920 --> 00:04:39,080 Speaker 2: it's just too many. You can't possibly enforce the standards 101 00:04:39,120 --> 00:04:42,640 Speaker 2: on that. No, said Matt, No, it's not that many. No, No, 102 00:04:42,720 --> 00:04:44,440 Speaker 2: everybody's doing the right thing. No, don't worry about it. 103 00:04:44,520 --> 00:04:46,320 Speaker 2: And then and I was like, well, whatever, we'll see 104 00:04:46,320 --> 00:04:47,839 Speaker 2: if we'll see what happens, and it's like, now they're 105 00:04:47,839 --> 00:04:50,560 Speaker 2: gonna get pink. No, well, look twenty eight twenty nine 106 00:04:50,640 --> 00:04:52,440 Speaker 2: days in and I don't know, have you heard about 107 00:04:52,480 --> 00:04:55,880 Speaker 2: anybody in ping to know? Because what's the best case 108 00:04:55,880 --> 00:04:59,080 Speaker 2: scenario is that the Ministry of Business, Innovation and Employment 109 00:04:59,160 --> 00:05:01,760 Speaker 2: send some sense of property inspectors down to the you know, 110 00:05:02,080 --> 00:05:04,280 Speaker 2: the student flats and Duneda and have a crack around 111 00:05:04,320 --> 00:05:07,039 Speaker 2: there and see what's going on. But you know that's 112 00:05:07,080 --> 00:05:09,200 Speaker 2: the best case and that most people are like, oh whatever, 113 00:05:09,480 --> 00:05:10,039 Speaker 2: I don't. 114 00:05:09,880 --> 00:05:13,800 Speaker 3: Care for more from Heather Duplessy Allen Drive. Listen live 115 00:05:13,920 --> 00:05:14,640 Speaker 3: to news talks. 116 00:05:14,640 --> 00:05:17,839 Speaker 2: It'd be from four pm weekdays, or follow the podcast 117 00:05:17,920 --> 00:05:18,880 Speaker 2: on iHeartRadio.