Latest / Early Edition with Ryan Bridge / Matt Ball: Property Investor Federation Manager on Cotality housing data

Transcript

Matt Ball: Property Investor Federation Manager on Cotality housing data · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: So Kiwis are holding onto their homes longer than ever.
• 0:02
  Speaker 1: New catality data shows the median ownership is now ten years,
• 0:05
  Speaker 1: matching an all time record. Fewer people are cashing in
• 0:08
  Speaker 1: big In fact, one in ten selling at a loss.
• 0:11
  Speaker 1: That's up from one percent that was several years ago,
• 0:15
  Speaker 1: back in twenty twenty one. Matt Ball Properly Investors Federation
• 0:18
  Speaker 1: is with us this morning.
• 0:19
  Speaker 2: Get a Matt Day, Ryan.
• 0:21
  Speaker 1: So it's apartment owners and it's also investors who are
• 0:25
  Speaker 1: more likely to sell for a loss.
• 0:27
  Speaker 2: Right, Yeah, that's right. But that's right across the board,
• 0:30
  Speaker 2: isn't it. People are holding onto their houses longer and
• 0:32
  Speaker 2: getting less of a profit or making a loss.
• 0:34
  Speaker 1: You're more likely to make a loss if you sell sooner,
• 0:37
  Speaker 1: aren't you. I think four point two years was the
• 0:41
  Speaker 1: median length of ownership for a loss making property. So
• 0:44
  Speaker 1: you hold it longer, you're less likely to sell for
• 0:46
  Speaker 1: a loss.
• 0:47
  Speaker 2: Yeah, that's true, Ryan, But there's two factors in there.
• 0:50
  Speaker 2: One is that we had that peak house prices about
• 0:53
  Speaker 2: four or five years ago, so there's a bunch of
• 0:55
  Speaker 2: people who've got caught out buying at the top of
• 0:57
  Speaker 2: the market and then obviously having to sell or. If
• 1:01
  Speaker 2: it's an investor, maybe they're just going to cut their
• 1:03
  Speaker 2: losses and put that money into something else. The other
• 1:06
  Speaker 2: thing to think about here is inflation. Over that ten
• 1:08
  Speaker 2: year period, general CPI was thirty six percent, So even
• 1:12
  Speaker 2: though making a so called profit, aren't going to be
• 1:15
  Speaker 2: doing that well.
• 1:17
  Speaker 1: And it also doesn't take into account what you might
• 1:18
  Speaker 1: have done to the place in the meantime.
• 1:20
  Speaker 2: Right, No, absolutely, right, I mean this is quite interesting.
• 1:23
  Speaker 2: I think this is the end of the casual investor era.
• 1:26
  Speaker 2: You can't just bug some money on a house and
• 1:28
  Speaker 2: think you're going to make a profit. You've actually got
• 1:30
  Speaker 2: to work for your money. I think it's the end
• 1:32
  Speaker 2: of the treat your house like an ATM eraror. You
• 1:35
  Speaker 2: can't just count from the house price going up and
• 1:37
  Speaker 2: covering all your debts, the OCE and the bats that
• 1:39
  Speaker 2: you put on in and whatever else. So that's changed.
• 1:43
  Speaker 2: The good news is if you're just buying a house
• 1:46
  Speaker 2: to live in, that's perfectly fine. And if you're a
• 1:49
  Speaker 2: professional investor, you know you're someone who's buying a rundown
• 1:51
  Speaker 2: house doing it up to then resell it because you
• 1:55
  Speaker 2: put some work in, that's fine. And if you're buying
• 1:58
  Speaker 2: and holding, and you're went into people providing a home
• 2:01
  Speaker 2: and making a living out of that. That's fine as well.
• 2:03
  Speaker 1: Are we going to see more corporate style landlords as
• 2:08
  Speaker 1: opposed to mum and dad landlords.
• 2:13
  Speaker 2: That's an interesting question. That's actually a trend that we've
• 2:16
  Speaker 2: seen overseas, and some of the changes to the rules
• 2:20
  Speaker 2: and regulations don't favor the mum and dad investor. I
• 2:23
  Speaker 2: think you probably will see a bit of a drop
• 2:26
  Speaker 2: in that. And because it won't be the casual investor,
• 2:30
  Speaker 2: someone who's just thinking, oh heck, I bet begining here
• 2:33
  Speaker 2: because everyone else is making money, so I should do,
• 2:36
  Speaker 2: it will be investors with purpose who want to run
• 2:40
  Speaker 2: a rental accommodation business, who enjoy providing homes for other
• 2:44
  Speaker 2: people and know how to make money out of it.
• 2:46
  Speaker 2: That's the group that will rise.
• 2:48
  Speaker 1: Good stuff. Matt Matt Bull Properly Investors Federation.
• 2:52
  Speaker 2: For More fam Earlily Edition with Ryan Bridge.
• 2:54
  Speaker 1: Listen live to news talks.
• 2:55
  Speaker 2: It'd be from five am weekdays, or follow the podcast
• 2:59
  Speaker 2: on iHeartRadio. H