Latest / Early Edition with Ryan Bridge / Matt Ball: Property Investors Federation Advocacy Manager on house prices the most affordable they've been in a decade, outside of Covid

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Matt Ball: Property Investors Federation Advocacy Manager on house prices the most affordable they've been in a decade, outside of Covid · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Right, let's get to property. House prices the most affordable
• 0:04
  Speaker 1: they've been in a decade. This is outside of the
• 0:06
  Speaker 1: COVID drop. National value to income ratio down to seven
• 0:09
  Speaker 1: point two for quarter four of twenty twenty five. That's
• 0:11
  Speaker 1: the lowest since twenty sixteen. The long term average is
• 0:14
  Speaker 1: six point eight. Matt Ball Property Investors Federation is with
• 0:17
  Speaker 1: us this morning. Matt, Good morning, Good morning, Ronnie. Well, yeah,
• 0:21
  Speaker 1: I'm very well, thank you. Is this where we go
• 0:23
  Speaker 1: out and buy lots of house.
• 0:26
  Speaker 2: Well, I mean it's still above the average long run
• 0:29
  Speaker 2: affordability measure, so it's great to see that number come down.
• 0:32
  Speaker 2: That's good for New Zealand, good for young people trying
• 0:34
  Speaker 2: to buy a house. But it'd be nice if that
• 0:36
  Speaker 2: dropped down a little bit further.
• 0:39
  Speaker 1: When you say good news for everyone, yes, good news
• 0:42
  Speaker 1: for first home buyers. Do investors go out and buy
• 0:46
  Speaker 1: at a time like this? Would you know?
• 0:48
  Speaker 2: Are they? This isn't the sort of measure that drives investors.
• 0:53
  Speaker 2: And if you look at some of the other surveys
• 0:55
  Speaker 2: happening at the moment, you actually see there's more investors
• 0:58
  Speaker 2: looking to sell at the moment. So the sort of
• 1:01
  Speaker 2: things that will drive an investor. Are the numbers you know,
• 1:05
  Speaker 2: if I buy this property, can I either add value
• 1:07
  Speaker 2: to it or can I get a good cash flow
• 1:10
  Speaker 2: out of it? So is it a good long term investment?
• 1:13
  Speaker 2: Things that are making investors nervous at the moment, or
• 1:15
  Speaker 2: obviously the election that's a bit tight, things like well,
• 1:20
  Speaker 2: I'm not am I going to be able to rent
• 1:22
  Speaker 2: the property? The rental market is a bit tight at
• 1:24
  Speaker 2: the moment, and that's sort of bringing the affordability down
• 1:29
  Speaker 2: to an achievable level for some people for rents. But
• 1:33
  Speaker 2: are rent's going to fall further? And they may do.
• 1:35
  Speaker 2: So it's biggest picture things that are concerning investors at
• 1:39
  Speaker 2: the moment. But also in some areas things are fine.
• 1:43
  Speaker 2: So if you go down the bottom of the South Island,
• 1:45
  Speaker 2: I think that the rental market there is much stronger
• 1:49
  Speaker 2: and some investors are are much more active.
• 1:52
  Speaker 1: How worrying is that interest deductibility thing from labor. I
• 1:56
  Speaker 1: mean we've talked about this before and you know your
• 1:58
  Speaker 1: reckonss maybe maybe they'll bring back fifty percent. I mean,
• 2:02
  Speaker 1: if you're looking, if you're weighing up investment options, as
• 2:04
  Speaker 1: you say, there's a whole bunch of things you think about.
• 2:06
  Speaker 1: But how much of a worry or drag is that one.
• 2:10
  Speaker 2: Interested actability? And you're right, Ryan, it really does look
• 2:13
  Speaker 2: like Labor are going to remove it again or at
• 2:15
  Speaker 2: least fifty percent. It's a huge worry. I just with
• 2:21
  Speaker 2: any business, if you suddenly couldn't deduct one of your
• 2:24
  Speaker 2: major expenses, that really changes the economics of it. So, yes,
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  Speaker 2: there are people and I know dotally and this isn't
• 2:31
  Speaker 2: hard evidence, but I know people who are selling a
• 2:35
  Speaker 2: few properties as they've got more than one, just to
• 2:38
  Speaker 2: get ahead of things to encase the election goes Labour's
• 2:42
  Speaker 2: way and interested actability is removed. It is a really
• 2:45
  Speaker 2: big concern.
• 2:47
  Speaker 1: Matt, appreciate your time this morning. Thanks for being with me,
• 2:49
  Speaker 1: Matt Boll Property Investors Federation.
• 2:51
  Speaker 2: For more from Early Edition with Ryan Bridge, listen live
• 2:54
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• 2:57
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