Latest / Best of Business / Dehardt van der Merwe: Propopoly founder on what the company hopes to do for Kiwis

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Dehardt van der Merwe: Propopoly founder on what the company hopes to do for Kiwis · Best of Business

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  Speaker 1: You're listening to a podcast from news Talks'd be follow
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  Speaker 2: A new fintech firm believes that it has the potential
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  Speaker 2: to disrupt how key we buy and sell properties. The
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  Speaker 2: name is pro Properly and what it is is that
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  Speaker 2: you can buy shares in a property development and then
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  Speaker 2: when those properties are sold to get a pay out
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  Speaker 2: on your holding. Now the founder is Dearheart van der
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  Speaker 2: merv and is with us now, High dear Heart.
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  Speaker 3: Good evening, hither Lord. If you chosen the.
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  Speaker 2: Right name, it's a mouthful.
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  Speaker 3: I think the name is probably the hardest thing for
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  Speaker 3: the investors about what it is that we're doing is
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  Speaker 3: how to pronounce it.
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  Speaker 2: Go gone, give it to me. Did I do it properly?
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  Speaker 3: Very propperly?
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  Speaker 2: Oh no, the puns have started. Okay, what kind of
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  Speaker 2: developments are people putting their money into? Here?
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  Speaker 3: Medium density residential developments. So for instance, the first project
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  Speaker 3: that we've got as we're doing four duplexes, that's eight homes,
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  Speaker 3: but all of the home are very well apportioned and
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  Speaker 3: very well sized.
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  Speaker 2: Okay. So the reason I asked is because we have
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  Speaker 2: just covered on the show in the last couple of weeks.
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  Speaker 2: The fact that townhouses are not selling Auckland Christ youge
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  Speaker 2: big problems. So why put money into townhouses?
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  Speaker 3: Yeah, that's a that's a great question, Heather, and I
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  Speaker 3: think for us, what it sort of comes down to
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  Speaker 3: is actually being able to be a data driven first
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  Speaker 3: approach and having a look what the market is doing
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  Speaker 3: and specifically the areas and what the type of product,
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  Speaker 3: the type of home that would perform really really well
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  Speaker 3: in that particular area.
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  Speaker 2: Why would someone put their money into this and not Chezy's.
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  Speaker 3: Well, I mean, if you look at sort of from
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  Speaker 3: a Cheesy's perspective, you're buying shares into a company now
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  Speaker 3: having a look at the just for some a quick
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  Speaker 3: dat up perspective sort of, the Nasdaq is very good.
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  Speaker 3: It returns about nineteen point five percent on the long
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  Speaker 3: term average. Although if you invested in the NASDAK maybe
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  Speaker 3: about a year ago, you'd probably need to be down
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  Speaker 3: about nineteen point five percent right now, so there's a
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  Speaker 3: lot of speculation with what the share prices are going
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  Speaker 3: to do. What we're doing is we're actually taking a
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  Speaker 3: bit of land, a bit of dirt, and we're converting
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  Speaker 3: into highest and best use. So there's a genuine value
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  Speaker 3: added cycle and it's a defined period so that we're
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  Speaker 3: taking the land, we're adding value to it, and then
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  Speaker 3: exiting it, exiting that for a profit if everything goes well.
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  Speaker 2: Okay, So are you saying close to assured returns.
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  Speaker 3: Well, there's no, there's no guarantees and we can't make
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  Speaker 3: any but that's why we're operating under the Financial Market
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  Speaker 3: Conduct Act, and there's a full product disclosure statement that's
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  Speaker 3: attached to this financial product of equity securities. So what that.
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  Speaker 4: Means is that we've disclosed everything, to the best of
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  Speaker 4: our abilities, all of the risks that goes into this,
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  Speaker 4: so that your average investor can come along for the
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  Speaker 4: journey understanding that these are the risks and can we
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  Speaker 4: responsibly share those risks and therefore responsibly share the outcomes.
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  Speaker 2: Yeah, do you think that? I mean, may is it
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  Speaker 2: possible that you might have missed the kind of hype
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  Speaker 2: in the property market, because I see there are an
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  Speaker 2: increasing number of people who are now saying publicly the
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  Speaker 2: end of the it's the end of the boom. We're
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  Speaker 2: never going to see the returns that we saw on
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  Speaker 2: property prices.
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  Speaker 3: Before well, that's a that's an interesting point, and I
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  Speaker 3: mean looking at it from a market dynamics perspective. You know,
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  Speaker 3: if I was to say, hey, I've got a crystal ball,
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  Speaker 3: my crystal ball would say that we're right at the
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  Speaker 3: bottom of the property market right now and that things
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  Speaker 3: are just going to keep getting stronger from here. So
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  Speaker 3: we're not going into this speculating. We're not going into
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  Speaker 3: this to say, hey, we're banking on property prices appreciating
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  Speaker 3: we're delivering a genuine value creation cycle here, So we're
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  Speaker 3: not looking to exit the properties to say, hey, there's
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  Speaker 3: going to be an additional three percent, five percent, eight
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  Speaker 3: percent uplift in the property market. That's why we've got
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  Speaker 3: an independent valuation that values the properties on it as
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  Speaker 3: proposed basis as at today's date.
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  Speaker 2: Now on the idea, and I've always been fast by
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  Speaker 2: the idea that you would take a share in a
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  Speaker 2: property and then you know that would be your investment.
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  Speaker 2: Why I'm fascinated by it is because I think our
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  Speaker 2: love of property DeHart is because we can live in it, right,
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  Speaker 2: So it's not only something you invest in, but it's
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  Speaker 2: actually functional for you. But if you're just buying a
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  Speaker 2: share and a property you can't live in it, so
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  Speaker 2: do we still have a love of it?
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  Speaker 3: I one hundred percent understand what you're saying there, and
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  Speaker 3: I agree with you, and I think that this mechanism
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  Speaker 3: isn't about owning the property. It's about participating in the
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  Speaker 3: value creation cycle of property so that you can participate
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  Speaker 3: in that value that's being created, whether you're a part
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  Speaker 3: of it or not, and that you can share in
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  Speaker 3: that value so that you can redirect that value to
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  Speaker 3: be able to get into the home that you want.
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  Speaker 3: I mean, when you actually just quickly look at the
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  Speaker 3: numbers herether it's actually quite staggering the average amount of
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  Speaker 3: time that it's taking in New Zealander to save in
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  Speaker 3: order to get a mortgage. It's pretty much to the
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  Speaker 3: point that future generations, unless they've got bank of them
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  Speaker 3: and dad, they've probably locked out of property permanently. So
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  Speaker 3: that's what we're all about. We're all about saying, hey,
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  Speaker 3: this value is being created. The property developers like they
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  Speaker 3: they participating in that value creation cycle. They make a
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  Speaker 3: tremendous amount of money, So can we get them to
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  Speaker 3: can we get the public, the retail investor to share
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  Speaker 3: in that value creation cycle.
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  Speaker 2: Okay, interesting. I look forward to seeing how it goes
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  Speaker 2: for you. De Heart Vandemev pro properly founder.
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