1 00:00:00,160 --> 00:00:02,480 Speaker 1: Now the government is set to change the Overseas Investment 2 00:00:02,520 --> 00:00:04,800 Speaker 1: Act to get more foreign investors to build housing here. 3 00:00:05,320 --> 00:00:08,080 Speaker 1: It's aimed to unlock money going in to build to 4 00:00:08,119 --> 00:00:10,160 Speaker 1: rent developments. It's not going to change bands on foreign 5 00:00:10,160 --> 00:00:13,120 Speaker 1: and as buying existing residential property. All Land Brad Olson 6 00:00:13,240 --> 00:00:17,040 Speaker 1: is Infametric's principal economist. Hey Brad Good evening, how's this 7 00:00:17,120 --> 00:00:17,599 Speaker 1: going to work? 8 00:00:18,760 --> 00:00:20,360 Speaker 2: Well, I think they're trying to make it so there's 9 00:00:20,360 --> 00:00:23,640 Speaker 2: a streamlined pathway for this investment having instead of having 10 00:00:23,680 --> 00:00:26,400 Speaker 2: to go through the normal hoops, if you will, of 11 00:00:26,480 --> 00:00:28,880 Speaker 2: overseas investment, which does seem to take quite a while. 12 00:00:28,960 --> 00:00:32,519 Speaker 2: It seems to be complex and costly, you know, and 13 00:00:32,560 --> 00:00:34,960 Speaker 2: it's the same for if you're doing a build to 14 00:00:34,960 --> 00:00:37,479 Speaker 2: rent scheme or if you're trying to purchase part of 15 00:00:37,800 --> 00:00:40,680 Speaker 2: another foreign company. The government said they want to provide 16 00:00:40,680 --> 00:00:43,280 Speaker 2: that sort of more streamlined option, so there's a specific 17 00:00:43,360 --> 00:00:45,839 Speaker 2: sort of ability to go through so you can get 18 00:00:45,880 --> 00:00:48,879 Speaker 2: your application in for build to rent and that'll be 19 00:00:49,000 --> 00:00:52,000 Speaker 2: a bit, hopefully a bit quicker enabled. I mean it 20 00:00:52,040 --> 00:00:54,520 Speaker 2: seems to be an area where we need more housing. 21 00:00:54,560 --> 00:00:56,880 Speaker 2: We'll take all the help we can get. And if 22 00:00:57,160 --> 00:00:59,520 Speaker 2: investors are saying as they often do, that there is, 23 00:00:59,560 --> 00:01:01,240 Speaker 2: you know, that much point of having to go through 24 00:01:01,280 --> 00:01:03,760 Speaker 2: all the paperwork and similar this seems to be a 25 00:01:03,880 --> 00:01:05,760 Speaker 2: fast and efficient method to try and get some of 26 00:01:05,800 --> 00:01:07,959 Speaker 2: those investors back into the country a bit quicker. 27 00:01:08,080 --> 00:01:09,880 Speaker 1: Are they interested in coming here to these investors? 28 00:01:10,920 --> 00:01:13,160 Speaker 2: Well, it seems like, I mean this announcement was made 29 00:01:13,200 --> 00:01:15,840 Speaker 2: as the Prime Minister and the Housing Minister we're opening 30 00:01:16,319 --> 00:01:20,280 Speaker 2: a new bill to rent development in Mount Wellington from 31 00:01:20,280 --> 00:01:23,319 Speaker 2: an overseas provider, and I think as well, the difference here, 32 00:01:23,400 --> 00:01:25,880 Speaker 2: right is that they're not looking to just have people 33 00:01:25,920 --> 00:01:28,160 Speaker 2: to come into New Zealand and sort of buy one 34 00:01:28,240 --> 00:01:31,080 Speaker 2: existing property and rented out like a mum and dad investor. 35 00:01:31,319 --> 00:01:33,520 Speaker 2: The idea here is to sort of have slightly larger, 36 00:01:33,640 --> 00:01:37,119 Speaker 2: sort of medium scale operations and also importantly that they'll 37 00:01:37,120 --> 00:01:39,960 Speaker 2: often be sort of longer lasting, so that gives a 38 00:01:39,959 --> 00:01:43,319 Speaker 2: bit more security for the landlord for the operator that 39 00:01:43,360 --> 00:01:45,440 Speaker 2: they've got sort of a longer term and sort of 40 00:01:45,440 --> 00:01:48,240 Speaker 2: more consistent return. Also probably good for the renter who 41 00:01:48,280 --> 00:01:50,520 Speaker 2: doesn't have to worry as much or won't have as 42 00:01:50,600 --> 00:01:53,320 Speaker 2: much worry about getting turfed out. I mean, look, Heather 43 00:01:53,400 --> 00:01:55,720 Speaker 2: as a renter that's always something I worry about at 44 00:01:55,720 --> 00:01:58,280 Speaker 2: the moment. So this seems like a good middle ground 45 00:01:58,360 --> 00:01:59,880 Speaker 2: and a good plan to try and add a bit 46 00:02:00,320 --> 00:02:01,880 Speaker 2: into the housings to fly over time. 47 00:02:02,080 --> 00:02:04,480 Speaker 1: Yeah, totally. Now, Chris Bishop talked about the need to 48 00:02:04,520 --> 00:02:08,160 Speaker 1: lower construction costs. That's easier said than Don Woods's plan. 49 00:02:09,360 --> 00:02:11,400 Speaker 2: Well, I think you've heard from both him and also 50 00:02:11,880 --> 00:02:15,680 Speaker 2: the building construction Minister pink over some of these areas 51 00:02:15,680 --> 00:02:18,320 Speaker 2: where they want to bring in the ability to have 52 00:02:18,800 --> 00:02:21,799 Speaker 2: basically a wider variety of products, so that that's one 53 00:02:21,800 --> 00:02:25,680 Speaker 2: of the things that competition will overtime lower building costs. 54 00:02:25,680 --> 00:02:27,320 Speaker 2: But at the same time, you don't want to go 55 00:02:27,680 --> 00:02:30,760 Speaker 2: into a position where you let anyone use anything. You 56 00:02:30,800 --> 00:02:33,160 Speaker 2: get lower quality products and it sort of screws it 57 00:02:33,240 --> 00:02:35,519 Speaker 2: up and we have another leaky home. So I think 58 00:02:35,560 --> 00:02:37,520 Speaker 2: what they're looking at at the moment is trying to 59 00:02:37,880 --> 00:02:40,440 Speaker 2: lower that barrier by seeing if there are other comparable 60 00:02:40,520 --> 00:02:43,320 Speaker 2: jurisdictions in the world. If they allow a particular building 61 00:02:43,320 --> 00:02:45,320 Speaker 2: product will be able to use it as well. In 62 00:02:45,360 --> 00:02:48,200 Speaker 2: New Zealand, you saw during the likes of the pandemic 63 00:02:48,240 --> 00:02:50,840 Speaker 2: when supply chains were a bit broken, and you know, 64 00:02:50,880 --> 00:02:53,640 Speaker 2: there was a not as much ability to produce some 65 00:02:53,760 --> 00:02:56,920 Speaker 2: of the fiber board, and that for houses overseas, we 66 00:02:56,919 --> 00:02:59,720 Speaker 2: were bringing in elephant board and stuff that came through. 67 00:03:00,160 --> 00:03:03,200 Speaker 2: That's I think an enduring opportunity because every building you 68 00:03:03,240 --> 00:03:06,160 Speaker 2: speak to sort of talks about two things. One the 69 00:03:06,200 --> 00:03:08,880 Speaker 2: materials cost a lot, and two the consens cost a 70 00:03:08,919 --> 00:03:11,359 Speaker 2: lot and take a long time. So if they can 71 00:03:11,600 --> 00:03:13,680 Speaker 2: try and fix all parts of that, you don't need 72 00:03:13,720 --> 00:03:16,320 Speaker 2: to completely fix them overnight. Just a bit of improvement 73 00:03:16,400 --> 00:03:18,040 Speaker 2: in all of them I think would go a long 74 00:03:18,080 --> 00:03:21,360 Speaker 2: way to enhancing how quickly we can get stuff built 75 00:03:21,480 --> 00:03:23,600 Speaker 2: and hopefully at not the same insane costs that we 76 00:03:23,680 --> 00:03:24,200 Speaker 2: sometimes have. 77 00:03:24,320 --> 00:03:26,240 Speaker 1: Yeah too right, well said hey, Brad, thank you very much, 78 00:03:26,320 --> 00:03:29,120 Speaker 1: look after yourself. Brad Olson in for Metrics Principle Economists. 79 00:03:29,480 --> 00:03:32,680 Speaker 1: For more from Heather Duplessy Allen Drive, listen live to 80 00:03:32,760 --> 00:03:35,760 Speaker 1: news talks the'd be from four pm weekdays, or follow 81 00:03:35,800 --> 00:03:37,560 Speaker 1: the podcast on iHeartRadio.