Latest / Best of Business / Matt Ball: Property Investors Federation advocacy manager speaks in defence in investment properties

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Matt Ball: Property Investors Federation advocacy manager speaks in defence in investment properties · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks B Follow
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• 0:17
  Speaker 1: Heather duplessy Ellen.
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  Speaker 2: Jeremy Williamson from Craig's Investment Partner says New Zealand's love
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  Speaker 2: affair with property investing is coming to an end. He
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  Speaker 2: spoke to Matt and Tyler earlier today, and I.
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  Speaker 3: Think of you know, when your kids playing past the
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  Speaker 3: parcel and trading and buying and selling investment properties to
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  Speaker 3: each other. Feels if it like that to me, where
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  Speaker 3: you know, you take a twenty dollar notes, you pass
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  Speaker 3: it around the circle, It still comes back as a
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  Speaker 3: twenty dollar note, doesn't it. The love affair we have
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  Speaker 3: with investment property has the same sort of thing to it.
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  Speaker 2: Jeremy says it's good for the country if investors starts
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  Speaker 2: switching to more productive assets then property. Matt Ball is
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  Speaker 2: the advocacy manager at the Property Investors Federation and with us, Hey,
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  Speaker 2: Matt Hiever, do you reckon? People are getting more savvy
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  Speaker 2: with the shares and starting to switch their money away
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  Speaker 2: from property.
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  Speaker 4: I think there's a definitely more choice and people are
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  Speaker 4: more aware of the share option and key we say
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  Speaker 4: that's contributed to that. But I don't think the love
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  Speaker 4: affair with property is over. I think the property market
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  Speaker 4: is changing thanks to some initiatives from the government, and
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  Speaker 4: I think people will start to take a bit of
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  Speaker 4: a different approach. I don't buy this whole property investment
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  Speaker 4: is in the productive activity. I mean, if you buy
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  Speaker 4: in trade shares, you're passing twenty bucks around. It's still
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  Speaker 4: twenty bucks in the end. It's just you're not actually
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  Speaker 4: adding to productivity. Same if you do that with a house.
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  Speaker 4: But if you treat property investing like a business, you
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  Speaker 4: buy for cash flow, you buy a property that you
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  Speaker 4: can do up and add to. You've made a better property,
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  Speaker 4: You've improved the property sector in New Zealand, You've made
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  Speaker 4: our general housing quality and number go up. That's a
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  Speaker 4: productive activity.
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  Speaker 2: So how do you think it's going to change. How
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  Speaker 2: is the approach to property investing changing?
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  Speaker 4: I think this government and actually I don't think I know,
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  Speaker 4: because this government has said very explicitly. Chris Bissit has
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  Speaker 4: said very explicitly he thinks housing's too expensive the New Zealand,
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  Speaker 4: both owner occupied and rental, and his government is determined
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  Speaker 4: to change that. And if you look at what they're doing.
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  Speaker 4: They've probably got at least a dozen bits of legislation
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  Speaker 4: or regulations on the books that are trying to change
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  Speaker 4: the housing money.
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  Speaker 2: Well, then why would I invest Why would I invest
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  Speaker 2: in property if I know that this government is actively
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  Speaker 2: trying to bring the price down.
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  Speaker 4: Okay, So you're not going to make the easy capital gains.
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  Speaker 4: So if you wake up one day and you go, oh,
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  Speaker 4: I might put some money into a house that looks easy,
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  Speaker 4: then forget it. That's not the sort of investor that's
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  Speaker 4: going to do well in this market. But our members
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  Speaker 4: around the country right now are getting out there and
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  Speaker 4: are hunting down bargains. They are properties that they know
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  Speaker 4: they can add value to, and that's how you're going
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  Speaker 4: to make your money. No, not flipping, think some people will. Yeah,
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  Speaker 4: you can do it up and rent it. You can
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  Speaker 4: do it up, rent it and hold it for a period,
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  Speaker 4: which is what most of our members do. You can
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  Speaker 4: make a good business out of that.
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  Speaker 2: Okay, So you reckon just being passive is no longer
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  Speaker 2: a solution. So you don't buy a nice rental in
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  Speaker 2: then rented out. You buy a crapo, you do it up,
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  Speaker 2: you rent it out. That's how you make your money
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  Speaker 2: when you add value yourself.
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  Speaker 4: Yeah, and that's always been a core strategy, just buying
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  Speaker 4: a place that has had all the work done to it,
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  Speaker 4: that's got no potential. There's no upside to that unless
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  Speaker 4: you're in the crazy twenty twenty market when you could
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  Speaker 4: buy something one day and sell it the next week
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  Speaker 4: for a profit. You know those days are gone. That
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  Speaker 4: looks a value. Yeah. Sorry, Karen.
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  Speaker 2: On another subject altogether, which is my favorite subject to
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  Speaker 2: discuss with you, which is the Healthy Home Standards. Any
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  Speaker 2: any naughty landlord's been pinned.
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  Speaker 4: It doesn't look like it's not.
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  Speaker 3: More than normal.
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  Speaker 4: Yeah. Maybe it is still one of the top three
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  Speaker 4: issues that tenants bring before the tenancy Truvian all day.
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  Speaker 4: So it is out there and penalty is are worse.
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  Speaker 2: Yeah, thanks man, appreciate it. Matt Bull, who is the
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  Speaker 2: advocacy manager at the Property Investors Federation. Yet, Matt and
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  Speaker 2: I have had Matt and I have had a little
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  Speaker 2: bit of court it or back and forth about this
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  Speaker 2: particular issue because I don't know if you remember, but
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  Speaker 2: the rules, well nobody remembers because no one cares. The
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  Speaker 2: Healthy Home Standards came in on the first of July, right,
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  Speaker 2: and like there are I think I calculated that there
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  Speaker 2: must be something in the vicinity of potentially as correct
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  Speaker 2: me if I'm wrong, because it's off the top of
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  Speaker 2: my head, but maybe three hundred thousand houses out there
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  Speaker 2: that do not meet the standards, just judging by like
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  Speaker 2: a kind of like a couple of surveys that you
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  Speaker 2: mash together and try to work it out. Numbers will
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  Speaker 2: woful like way off. But that's the best we've got,
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  Speaker 2: is that we know that there are tens of thousands,
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  Speaker 2: if not more, houses out there that do not meet
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  Speaker 2: the standards. Anyway, I said, don't bother who cares. We've
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  Speaker 2: got a ditch these standards because if you've got that much,
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  Speaker 2: if you've got that many properties in breach of the standards,
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  Speaker 2: it's just too many. You can't possibly enforce the standards
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  Speaker 2: on there. No, said Matt, No, it's not that many. No, No,
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  Speaker 2: everybody's doing the right thing. No, don't worry about it.
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  Speaker 2: And then and I was like, well, whatever, we'll see
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  Speaker 2: if we'll see what happens, and it's like, now they're
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  Speaker 2: gonna get pink. No, well, look twenty eight twenty nine
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  Speaker 2: days in and I have you heard about anybody in
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  Speaker 2: ping to know? Because what's the best case scenario, is it?
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  Speaker 2: The Ministry of Business, Innovation and Employment send some send
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  Speaker 2: some property inspectors down to the you know, the student
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  Speaker 2: flats and Dunedin and have a crack around there and
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  Speaker 2: see what's going on. But you know that's the best
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  Speaker 2: case scenario. Most people, Ah whatever, I don't.
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