1 00:00:07,133 --> 00:00:10,453 Speaker 1: You're listening to the Saturday Morning with Jack Team podcast 2 00:00:10,613 --> 00:00:11,733 Speaker 1: from News Talks. 3 00:00:11,453 --> 00:00:15,693 Speaker 2: AB and Talk Money. We are joined by the economist 4 00:00:15,773 --> 00:00:20,293 Speaker 2: at Opie's Partners, Ed mcnight. Good morning, Ed, and congratulations 5 00:00:20,373 --> 00:00:21,973 Speaker 2: on being a homeowner again. 6 00:00:23,133 --> 00:00:25,533 Speaker 3: I'm so much fantastic. It's funny to come on here 7 00:00:25,533 --> 00:00:28,253 Speaker 3: because we're going to be talking about rent investing today. 8 00:00:28,373 --> 00:00:30,253 Speaker 3: This is the idea and it's a bit of a 9 00:00:30,293 --> 00:00:34,613 Speaker 3: trend at the moment where people buy investment properties before 10 00:00:35,133 --> 00:00:37,933 Speaker 3: actually buying their own home. And as you said, it's 11 00:00:37,973 --> 00:00:41,493 Speaker 3: pretty topical because I've been investing in property for about 12 00:00:41,533 --> 00:00:45,333 Speaker 3: five years now, which is not very long. But finally 13 00:00:45,413 --> 00:00:48,293 Speaker 3: after those five years, have decided that's it. I recently 14 00:00:48,293 --> 00:00:51,853 Speaker 3: got engaged, so it's time to buy a house for myself. 15 00:00:52,373 --> 00:00:54,813 Speaker 3: And I think, and I was reflecting on the reasons, 16 00:00:54,933 --> 00:00:57,093 Speaker 3: well why did I leave it? Why didn't I just 17 00:00:57,173 --> 00:00:58,853 Speaker 3: buy a home to live in when I was twenty 18 00:00:58,893 --> 00:01:01,493 Speaker 3: six when I bought my first investment property. And I 19 00:01:01,493 --> 00:01:03,853 Speaker 3: think that them these days is sometimes you don't feel 20 00:01:03,853 --> 00:01:06,013 Speaker 3: ready to buy your first home and put down some 21 00:01:06,373 --> 00:01:09,893 Speaker 3: troops and actually settle down. Because when we're in when 22 00:01:09,933 --> 00:01:12,733 Speaker 3: we're in our twenties, we're still figuring it out. For 23 00:01:12,813 --> 00:01:15,093 Speaker 3: some people it's even still in their early thirties. And 24 00:01:15,173 --> 00:01:17,973 Speaker 3: so I see a couple of people deciding to say, look, 25 00:01:18,013 --> 00:01:19,933 Speaker 3: I'd love to get on the property letter, but I'm 26 00:01:19,973 --> 00:01:23,093 Speaker 3: going to buy an investment property before I buy that 27 00:01:23,213 --> 00:01:25,013 Speaker 3: first time that I'm actually going to live in. 28 00:01:25,813 --> 00:01:27,853 Speaker 2: Pros and cons for rent vesting. 29 00:01:28,893 --> 00:01:31,413 Speaker 3: Well, the first pro is that sometimes you can get 30 00:01:31,733 --> 00:01:34,253 Speaker 3: on the ladder the property letter a little bit earlier 31 00:01:34,253 --> 00:01:37,933 Speaker 3: than you otherwise might. So, for example, I live in Auckland, 32 00:01:37,973 --> 00:01:41,253 Speaker 3: but I bought my first investment property down in christ Church. 33 00:01:41,453 --> 00:01:44,333 Speaker 3: Now property prices are cheaper down there, so it's a 34 00:01:44,333 --> 00:01:46,413 Speaker 3: little bit easier to get on the letter. But look, 35 00:01:46,453 --> 00:01:49,053 Speaker 3: there are some obvious comms. We've got this big idea 36 00:01:49,053 --> 00:01:51,373 Speaker 3: in New Zone that a lot of people really value 37 00:01:51,453 --> 00:01:54,173 Speaker 3: owning their own home and living it and don't want 38 00:01:54,213 --> 00:01:56,733 Speaker 3: to delay that. Now, if that's you, that's kind of 39 00:01:56,733 --> 00:02:00,773 Speaker 3: where your values align and what you're into, then obviously 40 00:02:00,813 --> 00:02:03,613 Speaker 3: rent the stand wouldn't be for you. But there was 41 00:02:03,613 --> 00:02:07,053 Speaker 3: an interesting story of a journalist in tuss actually who 42 00:02:07,093 --> 00:02:10,613 Speaker 3: wrote about it for Informed Investorm magazine. He again might 43 00:02:10,693 --> 00:02:13,333 Speaker 3: me lived in Auckland, couldn't afford to buy a house 44 00:02:13,413 --> 00:02:15,253 Speaker 3: up here, So he flew down to the need and 45 00:02:15,453 --> 00:02:18,253 Speaker 3: bought an investment property there, and then after he'd gone 46 00:02:18,333 --> 00:02:20,853 Speaker 3: up in Valley, he was able to use that to 47 00:02:20,973 --> 00:02:24,173 Speaker 3: then go and buy that first home up here in Auckland. 48 00:02:24,253 --> 00:02:26,733 Speaker 3: So it's probably something you're going to do if you 49 00:02:26,813 --> 00:02:30,253 Speaker 3: live in a more expensive part of the country like 50 00:02:30,333 --> 00:02:33,773 Speaker 3: Auckland or Queenstown. Whereas if you're growing up or you 51 00:02:33,893 --> 00:02:37,133 Speaker 3: live in my old hometown Harbor in South Southern up here, 52 00:02:37,133 --> 00:02:40,133 Speaker 3: where property prices are relatively cheap, will buying your own 53 00:02:40,133 --> 00:02:43,253 Speaker 3: home is probably quite accessible relative or compared to what 54 00:02:43,333 --> 00:02:44,093 Speaker 3: it is in Auckland. 55 00:02:44,613 --> 00:02:46,573 Speaker 2: That's interesting and I would think too, being a renter 56 00:02:46,653 --> 00:02:48,013 Speaker 2: probably makes you a good landlord. 57 00:02:48,053 --> 00:02:52,813 Speaker 3: To ed. We have certainly understand were renters are coming 58 00:02:52,853 --> 00:02:55,613 Speaker 3: for and emphasized with them. And I think the other 59 00:02:55,693 --> 00:02:57,733 Speaker 3: thing that I talked about in my book Wells Plan 60 00:02:57,973 --> 00:03:01,093 Speaker 3: is that when you are young, it might just be 61 00:03:01,213 --> 00:03:04,213 Speaker 3: you or you and your partner. So renting a two 62 00:03:04,293 --> 00:03:08,413 Speaker 3: bedroom units or a one bedroom apartment might be the 63 00:03:08,453 --> 00:03:13,933 Speaker 3: total an appropriate place for you to drint. But you 64 00:03:14,013 --> 00:03:16,693 Speaker 3: might say, well I really want to invest or buy 65 00:03:16,853 --> 00:03:19,373 Speaker 3: three bedroom homes then, so that's where it can make 66 00:03:19,453 --> 00:03:21,133 Speaker 3: sense as well. You want to live in a central 67 00:03:21,173 --> 00:03:23,773 Speaker 3: city one bedroom apartment, but you don't actually want to 68 00:03:23,813 --> 00:03:26,533 Speaker 3: invest in that or have that as part of your portfolio, 69 00:03:26,773 --> 00:03:29,293 Speaker 3: so you invest somewhere else. So there's not always this 70 00:03:29,453 --> 00:03:32,573 Speaker 3: nice alignment between what makes a good investment and the 71 00:03:32,653 --> 00:03:33,773 Speaker 3: home that you want to live in. 72 00:03:34,053 --> 00:03:36,613 Speaker 2: Thanks so much, Ed, Jesus has been a big year 73 00:03:36,613 --> 00:03:38,773 Speaker 2: for Ed, hasn't it. Thank you very much. 74 00:03:39,373 --> 00:03:42,493 Speaker 1: For more from Saturday Morning with Jack Tame, listen live 75 00:03:42,573 --> 00:03:45,413 Speaker 1: to News Talks ed B from nine am Saturday, or 76 00:03:45,453 --> 00:03:47,373 Speaker 1: follow the podcast on iHeartRadio.