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Matt Ball: Property Investors Federation advocacy manager on whether New Zealand renters are better off · Best of Business

• 0:09
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  Speaker 2: The past five or so years have seen kiwis flocking
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  Speaker 2: to Australia in search of better wages, rent and lifestyle.
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  Speaker 2: But we're now spending thirty nine percent of a monthly
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  Speaker 2: earnings on rent, down five percent in a year. The Aussies, however,
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  Speaker 2: trending in the other direction. Probably Investors Federation Advocacy manager
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  Speaker 2: is Matt Ball and joins us. Now, how am that?
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  Speaker 3: Okay? Andrew? Thanks for having me.
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  Speaker 2: So these rents going down? Is this happening? Is it continuing?
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  Speaker 2: Or is my producer being hopeful about getting a lower rent.
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  Speaker 3: Rents are definitely coming down. It's not exactly the same
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  Speaker 3: all across the country. Some parts like Queenstown that's still
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  Speaker 3: not enough supply and higher demand. But if you look
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  Speaker 3: at Auckland, I mean rents have been flat and Auckland
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  Speaker 3: for a number of years now. So yes, renters are
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  Speaker 3: in a much better position now than they have been
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  Speaker 3: in previous years.
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  Speaker 2: And what's causing the change.
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  Speaker 3: I think in this case it's really a supply and
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  Speaker 3: demand things. So demand has slackened off a bit as
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  Speaker 3: our migration numbers have dropped out, but also supply so
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  Speaker 3: actions that the previous government labor coom An under Feldweiford
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  Speaker 3: took to increase the ability, the planning ability to build
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  Speaker 3: more houses. And then this government has just pulled out
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  Speaker 3: all the stops to try and increase housing supply, to
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  Speaker 3: make it easier, faster and cheaper to build houses. And
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  Speaker 3: we're seeing the effect of that. So don't you have
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  Speaker 3: more supply?
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  Speaker 2: I mean, you know, there's an overhang of apartments. So
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  Speaker 2: I got to notice the other day from anent investor
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  Speaker 2: bulletin has said there's nine hundred excess apartments right now.
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  Speaker 2: So the apartment market's bottomed out, townhouses bottomed out. So
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  Speaker 2: this is a great time to buy, and people are
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  Speaker 2: buying low. And if they're buying low, well, then the
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  Speaker 2: rents low one.
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  Speaker 3: Percent, so that that's an interesting dynamic in the market too.
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  Speaker 3: So first home buyers are doing really well at the moment.
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  Speaker 3: But also if you're an investor buying now, your return
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  Speaker 3: is better than say, if you're an investor who brought
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  Speaker 3: at the peak of the market it for a very
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  Speaker 3: high price and that's now dropped, then yeah, things aren't
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  Speaker 3: so good for you, But for renters, it's a really
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  Speaker 3: good time to be a renter, so you know, take
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  Speaker 3: advantage of that rental property.
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  Speaker 2: Is this a passing statistic or something that will stick.
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  Speaker 3: I don't think it's a passing statistic. As I said,
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  Speaker 3: this government is pulling all the leaders in terms of
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  Speaker 3: trying to increase the number of houses that are built
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  Speaker 3: and to reduce the cost of building those houses. That's
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  Speaker 3: a really important thing. We need people to have good quality,
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  Speaker 3: affordable homes. If supply and demand is and balance, then
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  Speaker 3: rents will be reasonable. It kind of doesn't matter to investors.
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  Speaker 3: You know, you can buy that property that needs renovation,
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  Speaker 3: put in the work, and you make your money that way.
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  Speaker 3: Also you make your money through cash flow. You buy cheaper,
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  Speaker 3: you rent cheaper. It's all good good. So no, this's
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  Speaker 3: a positive thing long term, all.
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  Speaker 2: Right, Matt Ball, I think you for your time. Property
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  Speaker 2: Investors Federation Advocacy Manager. The text of flying in right
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  Speaker 2: now about the wriggling like an eel, I think is
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  Speaker 2: one thing. Others saying that was softball interview Dickens. Was
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  Speaker 2: it really other people saying I was a really way
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  Speaker 2: too hard, don't you love this job, It's sixteen minutes
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  Speaker 2: a half to five.
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