Latest / The SME Stream / Debbie Roberts: The Reserve Bank should have gone further

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Debbie Roberts: The Reserve Bank should have gone further · The SME Stream

0:00
Speaker 1: We can go to.
0:03
Speaker 2: We we can. Yes, welcome back. This is the Weekend Collective.
0:18
Speaker 2: I'm Tim Beverage. By the way, I'm still sort of
0:20
Speaker 2: slightly recovering from the panel with Wilhelmina Shrimpton and Neva
0:23
Speaker 2: reading money. Great fun and if you missed it, you
0:25
Speaker 2: can go and check it out. Look for the Weekend
0:26
Speaker 2: Collective on iHeartRadio or wherever you get your podcasts of
0:31
Speaker 2: course as well. But now it is time for the
0:34
Speaker 2: one roof radio show. And my guest is an investment
0:37
Speaker 2: coach at Property and Prentice. She's very familiar to most
0:41
Speaker 2: of my listeners unless you're brand new. And it's Debbie
0:43
Speaker 2: Roberts today. Debbie, how are you going.
0:45
Speaker 3: I'm doing great, Thanks for having me.
0:48
Speaker 2: You've actually you're just telling me you've been recovering from
0:51
Speaker 2: the sort of flu of all flues.
0:53
Speaker 3: I know, the dreaded leg I'll tell you what wish
0:55
Speaker 3: i'd had that flu? Jab missed it.
0:58
Speaker 2: It's funny. It's one of those things, isn't it. People
1:00
Speaker 2: say colds and flues and they go sniff, sniff, I've
1:02
Speaker 2: got a cold, and it's like, what do you feel
1:03
Speaker 2: like living? They go, yeah, you've got a cold inlet
1:05
Speaker 2: the flu, because when you get the flu, it's horrendous.
1:08
Speaker 2: So I'm glad you made it in.
1:09
Speaker 3: Well done, I survived.
1:11
Speaker 2: Yeah. Hey, look now, look, we've all heard now that
1:15
Speaker 2: the Reserve Bank has cut the fifty basis points. There
1:19
Speaker 2: was some talk earlier on of it being a bigger cut.
1:23
Speaker 2: You know, quite a few arguments being made for points
1:25
Speaker 2: seventy five or even one whole point, and there'll be
1:28
Speaker 2: those be wondering whether this is the time to fix
1:30
Speaker 2: for a longer term, that might not be the best option.
1:33
Speaker 2: I would say, there's obviously still more to come. But
1:36
Speaker 2: you have look look at you. You haven't got a
1:39
Speaker 2: copy of the monetary policy statement. You've done. It's in
1:43
Speaker 2: color and I can see as you've found through it,
1:46
Speaker 2: you've highlighted bits. Is actually, here's a simple question. What
1:52
Speaker 2: we all wait for is what's a cut by? What
1:55
Speaker 2: do you learn from actually reading the statement?
1:58
Speaker 3: Oh, you learn heaps and same with what the media
2:01
Speaker 3: releases and things like that afterwards. So one of the
2:04
Speaker 3: things that caught my eye was that their planning or
2:07
Speaker 3: their projections are to reduce the ocr by another one
2:11
Speaker 3: to one point five before the end of next year.
2:15
Speaker 3: By another one one hundred to one hundred and fifty
2:20
Speaker 3: bases points.
2:21
Speaker 2: From here, from here or from where it was before.
2:23
Speaker 3: They saw them here.
2:25
Speaker 2: So where are we are?
2:26
Speaker 3: So okay, that's actually that's quite significant.
2:29
Speaker 2: That actually is because what are we It's we're four
2:32
Speaker 2: point twenty five?
2:33
Speaker 3: Now four point twenty five.
2:34
Speaker 2: I'd struggle to imagine them wanting to go below three.
2:38
Speaker 3: Well, there's there's a figure that they say is neutral,
2:42
Speaker 3: and that's somewhere around the three mark. I can't remember
2:45
Speaker 3: it off the top of my head. It is in
2:47
Speaker 3: here highlighted for me.
2:49
Speaker 2: That's all right, while you're doing that, you can look
2:50
Speaker 2: for that, because what am I going to do is
2:51
Speaker 2: throw to our listeners as well. We want your calls
2:53
Speaker 2: on O eight one hundred eighty ten eighty. You can
2:55
Speaker 2: text on nine two nine two. The simple question is
2:59
Speaker 2: should the RBS yet have gone further? And I think
3:01
Speaker 2: you know, I almost softened up my own opinion of
3:04
Speaker 2: this over the last week or so because we've got
3:06
Speaker 2: used to the Reserve Bank Governor Adrian or being conservative
3:11
Speaker 2: with many of his moves. You might remember, Actually, here's
3:14
Speaker 2: something to recall is that probably even in the course
3:17
Speaker 2: of this year he had not. He had talked about
3:20
Speaker 2: keeping the interest rates where they originally were until next
3:24
Speaker 2: year and how quickly times time flies and circumstances change.
3:28
Speaker 2: But do you remember that he was he was literally
3:29
Speaker 2: talking about yeah, and all of a sudden, what do
3:32
Speaker 2: we know, we're tumbling and we're going to tumble further.
3:36
Speaker 2: So one eighty ten eighty should the Reserve Bank have
3:39
Speaker 2: gone further already? Do you think there's a can you
3:43
Speaker 2: understand why they might sort of want to eke it down,
3:46
Speaker 2: you know, in steps, But there have been commentators in
3:49
Speaker 2: the last few months have said next time he should
3:51
Speaker 2: cut it by a whole point. And if he's if
3:53
Speaker 2: the statement itself is saying they're planning to cut further
3:56
Speaker 2: than I would say fixed for as short as possible
3:58
Speaker 2: at least not specific financial advice, So.
4:01
Speaker 3: It's not specific financial advice, but I mean even you know,
4:04
Speaker 3: the banks straight after the announcement started reducing their rates
4:08
Speaker 3: and now they're competing with each other, so you know,
4:11
Speaker 3: for market share as well. So it's it's quite interesting
4:14
Speaker 3: to see what's happening in the interest rates space at
4:17
Speaker 3: the moment, and that is likely to continue.
4:20
Speaker 2: Is so much jostling gone since the day it's south
4:23
Speaker 2: because initially you see instant reaction because they've got something,
4:26
Speaker 2: they'll have their plans locked in its depending on what
4:28
Speaker 2: the rate reluction is right now.
4:30
Speaker 3: And some of the banks were reducing before the before
4:33
Speaker 3: the announcement. There was one that came out just minutes
4:37
Speaker 3: before the announcement, it felt like, and then a few
4:40
Speaker 3: others made their announcements straight afterwards. One of the banks,
4:44
Speaker 3: one of the main banks, has sort of held out
4:47
Speaker 3: for a little bit longer, so we're expecting some movement
4:50
Speaker 3: in that space in the next few days.
4:53
Speaker 2: Here's a cynical one. A. I'm looking at A and Z,
4:56
Speaker 2: which is my bank, and the two and three year
5:01
Speaker 2: interest rates are six point one nine. This is just
5:03
Speaker 2: a standard one. This isn't without having fantastic levels of equity.
5:07
Speaker 2: But the six month rate is six point eighty four.
5:10
Speaker 2: Because you know what that tells us. They know that
5:12
Speaker 2: we're going to go for short rather than long, or
5:14
Speaker 2: they're trying to entice us for longer, and they really
5:16
Speaker 2: think they're going to make money out of us in
5:18
Speaker 2: the next year or two.
5:19
Speaker 3: Yeah, and the advertised rates aren't their actual rates either,
5:24
Speaker 3: so you know, like mortgage advisors can get you a
5:26
Speaker 3: better deal than that, And same with probably if you
5:29
Speaker 3: went directly to the bank yourself. Obviously, if you go
5:32
Speaker 3: directly to the bank yourself, you don't get that financial
5:35
Speaker 3: advice on your individual situation.
5:37
Speaker 2: It does feel a little I still can't work out
5:41
Speaker 2: the logic around why, if you have more equity you
5:47
Speaker 2: should get a cheaper rate, because surely the risks to
5:51
Speaker 2: the bank is they've assessed already. Why should you have
5:56
Speaker 2: to pay more for your money. I still struggle that
6:00
Speaker 2: a bit, even if I get it explained to me
6:01
Speaker 2: in great detail.
6:02
Speaker 3: Yeah, it's usually a higher interest rate if you've got
6:06
Speaker 3: less than twenty percent right, or twenty percent equity as
6:09
Speaker 3: a homeowner. So if you if you purchased your home
6:12
Speaker 3: with less than twenty percent and now you've got twenty
6:15
Speaker 3: percent equity, it's worth talking to your mortgage advisor and
6:18
Speaker 3: getting that discount applied because they don't have to keep
6:21
Speaker 3: that on there forever.
6:23
Speaker 2: Well, probably if you have bought it with less than
6:25
Speaker 2: twenty percent equity, it's probably, of course you have quite
6:28
Speaker 2: a significant income, which means that they're not so worried
6:31
Speaker 2: about your lack of equity. Was it all.
6:34
Speaker 3: No home buyers can get lending at ninety percent and
6:38
Speaker 3: new builds up to ninety five percent for homeowners, so
6:42
Speaker 3: you know, you don't have to have a twenty percent
6:44
Speaker 3: deposit to purchase a home. But there are the low
6:47
Speaker 3: equity margins and lenders mortgage insurance that can apply as well.
6:51
Speaker 3: So as soon as you've got twenty percent equity, it's
6:54
Speaker 3: definitely worth getting that adjusted.
6:56
Speaker 2: Actually, we've had Antonio Watson, the CEO of the ANZ,
6:58
Speaker 2: on the show before for a whole hour. Might have
7:00
Speaker 2: to grill her about that one. You have to get
7:02
Speaker 2: her in again and griller about that. Come on, So, yeah,
7:05
Speaker 2: what do you reckon? Oh one hundred and eighty ten
7:06
Speaker 2: eighty should the Reserve Bank have gone further? Do you
7:08
Speaker 2: think they should have gone further? Debbi?
7:10
Speaker 3: I mean yeah, I mean, I mean yeah.
7:15
Speaker 2: I mean we can have our Christmas wish and say,
7:16
Speaker 2: of course we should it should have gone further, But
7:19
Speaker 2: reasonably they could have easily locked another twenty five percent off.
7:22
Speaker 2: There's no Is there any danger in that? Or is
7:26
Speaker 2: the uncertainty with the American economy and the new presidents
7:29
Speaker 2: and all that is that? Cause with the trade thing,
7:31
Speaker 2: don't people say there's a knock on effect of insecurity
7:34
Speaker 2: and markets and all that sort of stuff. What does
7:36
Speaker 2: it mean?
7:37
Speaker 3: I think, in my opinion, I think they were a
7:39
Speaker 3: bit cautious because the next inflation results aren't out until
7:43
Speaker 3: twenty second of January, and the next economy you know,
7:47
Speaker 3: the GDP results aren't out till the nineteenth of December.
7:50
Speaker 3: So that's two key pieces of information that they didn't
7:54
Speaker 3: have going into this announcement. I mean, in my opinion,
7:57
Speaker 3: everyone knows the economy stuffed. You know, you just need
8:00
Speaker 3: to read the headlines about how many businesses are liquidating,
8:03
Speaker 3: how many people are losing their jobs. So I think
8:06
Speaker 3: it wouldn't have hurt for them to reduce the ocr
8:10
Speaker 3: a little bit further than they did. In my opinion.
8:13
Speaker 3: The way that the way that if the results come
8:16
Speaker 3: in the way that we would expect them to, that
8:19
Speaker 3: increases the chance of potentially zero point seventy five reduction
8:23
Speaker 3: in February.
8:25
Speaker 2: It's an interesting calculation to make, isn't it. When you
8:28
Speaker 2: look at the it's cheaper for one or two years.
8:31
Speaker 2: But it's really one of those things just you'd want
8:34
Speaker 2: to resist that temptation unless you had some sort of
8:36
Speaker 2: major borrowing, you'd split your mortgage up into different sort
8:39
Speaker 2: of fact, that would be the one argument for taking
8:41
Speaker 2: maybe part of your loan for one or two years
8:45
Speaker 2: and then splitting a shorter part off off of it.
8:48
Speaker 2: On I don't know, am I making sense? As I
8:50
Speaker 2: was starting to explain that, I thought, actually, Tim, I'm
8:52
Speaker 2: not sure I agree with Tom. A bit of a
8:55
Speaker 2: worry when I start arguing with myself while I'm talking.
8:57
Speaker 3: Yeah, well, it does depend on what you're over or
9:00
Speaker 3: borrowing positions. Like you know, there's some people who own
9:03
Speaker 3: a few rental properties, so if you've got mortgages on
9:06
Speaker 3: those as well, then it can be worth looking at
9:08
Speaker 3: staggering your expiry dates. At the moment, a lot of
9:12
Speaker 3: people that I'm talking to, a lot of clients that
9:14
Speaker 3: I'm talking to are choosing the six month rate until
9:18
Speaker 3: they feel like we're a bit closer to the bottom
9:20
Speaker 3: of the interest rate cycle, and then they'll lock it
9:23
Speaker 3: in for long term. It certainly did us pretty well
9:26
Speaker 3: in the last downtien with the interest rate cycle when
9:29
Speaker 3: we locked in for five years at two point five
9:32
Speaker 3: and two point nine to nine percent.
9:34
Speaker 2: Don't the interest rates themselves tell us a story though,
9:37
Speaker 2: about what the banks are anticipating. So when it gets
9:40
Speaker 2: down to when the short term rate is cheap, often
9:43
Speaker 2: the long term rate is not as appealing as it
9:45
Speaker 2: might have been. You know, they start to pop that
9:48
Speaker 2: up because.
9:49
Speaker 3: Yeah, what we tend to find is that the OCR
9:53
Speaker 3: has the biggest effect on the short term and the
9:55
Speaker 3: floating rates. The longer term interest rates are more affected
9:59
Speaker 3: by swap rates and international finance stuff. So yeah, and
10:05
Speaker 3: swap rates have been an interesting thing to look at recently.
10:08
Speaker 3: So swap rates were coming down on all aspects, and
10:12
Speaker 3: then the longer term rates like three, four and five
10:15
Speaker 3: years started creeping up. But I've noticed they've started coming
10:19
Speaker 3: down again too, So it might have just been a
10:20
Speaker 3: bit of a lip.
10:22
Speaker 2: Okay, just probably go to our first call, what do
10:24
Speaker 2: you think the optimum reasonable rate considering what you as
10:29
Speaker 2: an investor would want to pay versus what's probably reasonable
10:32
Speaker 2: for the economy and inflation and the reserve bank and
10:34
Speaker 2: all the competing interests. What do you think?
10:36
Speaker 3: A question?
10:37
Speaker 2: Yeah, what do you think the sweet spots? There we go.
10:39
Speaker 2: That's the expression of we all.
10:41
Speaker 3: So I like to look at what the long term
10:43
Speaker 3: average is, and if we look at the long term
10:46
Speaker 3: twenty year average interest rate just before the first COVID case,
10:51
Speaker 3: because don't forget that the reserve being slashed the OCR
10:55
Speaker 3: after we had our first COVID case, and that's when
10:57
Speaker 3: we've got interest rates at ridiculously low levels of like
11:00
Speaker 3: the two and a half and three percent, three and
11:03
Speaker 3: a half percent, So yeah, that was abnormal. So excluding that,
11:07
Speaker 3: at the long term average interest rate is six point
11:11
Speaker 3: three five percent, And is that we've got d low
11:14
Speaker 3: that now?
11:15
Speaker 2: Well, you see, because that's still yeah. I mean, look,
11:19
Speaker 2: it's like I reckons, isn't it. We all have just
11:20
Speaker 2: a number that sounds about right, and to me, five
11:23
Speaker 2: point nine nine sounds about right. I don't know why.
11:25
Speaker 3: Yeah, five point nine nines below the average. So you know,
11:28
Speaker 3: what we tend to do is to look at you know,
11:31
Speaker 3: if interest rates are above average, then we tend to
11:35
Speaker 3: look at shorter term rates. If it's below average, then
11:40
Speaker 3: we tend to look at longer term rates. But because
11:42
Speaker 3: all indications at the moment are for further OCR cuts now,
11:46
Speaker 3: the majority of New Zealanders are picking the six month
11:49
Speaker 3: or twelve month rates at the moment. If you chose
11:52
Speaker 3: a five year one, you might regret that in six months, Yes, I.
11:57
Speaker 2: Would suggest you would. Yeah, okay, we want your cause.
11:59
Speaker 2: Should a reserve bank have gone further? Should the cut
12:02
Speaker 2: have been further? But what's your tactic from here? Are
12:05
Speaker 2: you going to be like many people who are thinking, well,
12:06
Speaker 2: hang on a minute. I mean, as Debbie said in
12:08
Speaker 2: the monetary statement monetary policy statement, they've talked about cuts
12:12
Speaker 2: of another point or point and a half, which is
12:14
Speaker 2: really quite quite expansive sort of predictions, isn't it. So
12:18
Speaker 2: what do you reckon? Should they have gone further? And
12:20
Speaker 2: should they have gone further sooner? I eight one hundred
12:24
Speaker 2: eighty ten eighty text nine two nine two. But also
12:26
Speaker 2: what does it mean for your strategy around your borrowing?
12:29
Speaker 2: If you've got something where you think you've nailed it,
12:31
Speaker 2: then share it with us. I eight one hundred and
12:33
Speaker 2: eighty ten eighty will be back in just a moment.
12:34
Speaker 2: It's coming up to twenty past four news Stalk. Si'd
12:36
Speaker 2: be I ever once money?
12:41
Speaker 1: Would?
12:42
Speaker 4: I never want to work for the money, so I
12:45
Speaker 4: borrow the money for moment?
12:49
Speaker 1: Can you believe I never met her?
12:53
Speaker 3: Yuess?
12:53
Speaker 2: Welcome back? This is we can collective the one rufradio
12:55
Speaker 2: show My guest is Debbie Roberts from Property Apprentice, talking
12:58
Speaker 2: about the cash rate change that was announce by the
13:00
Speaker 2: Reserve Bank governor this week. They dropped it down point
13:02
Speaker 2: five of a percent or fifty basis points, which is
13:06
Speaker 2: the way they like to put it to four point
13:07
Speaker 2: to five I believe, and your reaction to it and
13:11
Speaker 2: predictions and should they have actually gone further? The simple
13:13
Speaker 2: take on it. Eight hundred eighty ten eighty Peter High.
13:18
Speaker 2: I'm all right, how you doing.
13:21
Speaker 5: I've got some new team who yeh, bud go work.
13:26
Speaker 2: You've got some erebuds on. It is a bit foggy,
13:28
Speaker 2: but anyway, carry on. What did you want to say?
13:32
Speaker 5: I appear my situation. Well, I'll have to tell these
13:38
Speaker 5: air buds off with me a second.
13:40
Speaker 2: Okay, We'll let you take your earbuds off. I'll actually
13:42
Speaker 2: just just stick there and I'll quickly get a dB
13:45
Speaker 2: robits just before we come back to you. So, Debbie,
13:47
Speaker 2: of course people know you do from Property Apprentice, and
13:50
Speaker 2: you do do every now and again. Is it every
13:52
Speaker 2: week or something? Because it seems more frequent than I
13:54
Speaker 2: than I remember. You have free seminars for people, yep.
13:57
Speaker 3: Every week online and about once a month we do
14:01
Speaker 3: a free event in our office.
14:03
Speaker 2: So yeah, and what happened? What do people do? They
14:05
Speaker 2: just turn up and you have a chat?
14:06
Speaker 3: Well, it pays to register. Yeah, that way we know
14:10
Speaker 3: how many people to expect. But also you know, if
14:13
Speaker 3: we get more than the maximum online, then we can
14:16
Speaker 3: check in an extra event for those people that weren't
14:18
Speaker 3: able to attend it.
14:19
Speaker 2: Do you get busy before Christmas? It sort of.
14:22
Speaker 3: It's really picked up in the last couple of weeks.
14:25
Speaker 3: It's been quite interesting.
14:26
Speaker 2: Cool, right, let's I think we've got Peter. You put
14:28
Speaker 2: your earbuds away? Hey, you sounding oh way better? There
14:33
Speaker 2: you are? Hello.
14:35
Speaker 1: I'll give that a C minus from TV.
14:40
Speaker 2: Oh good onea fantastic What do.
14:42
Speaker 1: You like eighteen bucks? My situation is they're basically mortgage free.
14:49
Speaker 1: You live in a big house, but we bought some.
14:54
Speaker 1: We've brought one commercial unit work catch. It's more one
14:58
Speaker 1: of those congrege slab ones, like in we're gonna we're
15:00
Speaker 1: just going to get a mortgage next week for it
15:02
Speaker 1: near five hundred for another one. Uh huh. So I
15:09
Speaker 1: don't know what to do, fix or float. I'm literally
15:11
Speaker 1: going to float. But were you saying that before that,
15:15
Speaker 1: six months rates are higher than three year rates in
15:17
Speaker 1: a moment.
15:19
Speaker 2: Well, no, no, they're not at the moment, But we
15:21
Speaker 2: were just talking about when things start to bottom out
15:24
Speaker 2: suddenly the short term rate can look more attractive than
15:29
Speaker 2: the long term rate because they want you to fix
15:32
Speaker 2: short all of a sudden, whatever the cheap I think
15:34
Speaker 2: what we're what I was I was trying to say
15:36
Speaker 2: in my layman's way, is that the rate that is
15:39
Speaker 2: the cheapest is the one they probably want you to avoid.
15:43
Speaker 2: You probably, that's right, that's the one they want you
15:47
Speaker 2: to take, but you might think about avoiding. So what
15:50
Speaker 2: are your so how much are you borrowing? A fourth Okay,
15:55
Speaker 2: so you're trying to make a decision as to whether
15:57
Speaker 2: that to float or go six months, one year sort
16:00
Speaker 2: of thing.
16:01
Speaker 1: Yeah, I might exploit it, to be honest, I can
16:03
Speaker 1: pay some catch off anything.
16:05
Speaker 3: Yeah, the floating interest rates are the highest at the moment,
16:09
Speaker 3: So they're considerably higher than the six States. Yeah, but
16:13
Speaker 3: you know, if you're in a position that you can
16:15
Speaker 3: comfortably afford that then might not be silly, because chances
16:18
Speaker 3: are you'll be able to lock in a lower rate
16:20
Speaker 3: after the February announcement.
16:22
Speaker 2: I've got to get my maths right here, though, Peter,
16:24
Speaker 2: because if you are borrowing, let's say you're borrowing four
16:26
Speaker 2: hundred thousand, just make it easy and you're paying, so
16:29
Speaker 2: the floating rate is about well, what have we got.
16:32
Speaker 2: Let's have a lock on the one year standard for
16:36
Speaker 2: A and Z. The standard rate is six point thirty
16:39
Speaker 2: nine and the floating is seven point thirty nine, So
16:41
Speaker 2: one whole percent on four hundred thousand is quite a lot.
16:48
Speaker 2: That's I'm not going to frighten the horses too much,
16:51
Speaker 2: but it's still money.
16:52
Speaker 1: I had a second question as well, sort of related
16:55
Speaker 1: to this. I've also got about the similar amount put
16:58
Speaker 1: away and turned to posit it comes out in February.
17:04
Speaker 1: Do you think I get I'm looking at buying another
17:07
Speaker 1: unit with that? Or do you think do you think
17:11
Speaker 1: that's a managers get a bigger mortgage?
17:14
Speaker 2: Well? What not? Specific financially, we will do an disclaimer
17:17
Speaker 2: that we're not going to give specific financial advice, but
17:19
Speaker 2: that's just we know we know, Debbie.
17:24
Speaker 3: I mean general advice would be that you know it
17:27
Speaker 3: is a text a actible debt, so it depends on
17:30
Speaker 3: if you've got profits on off seat. So I'd suggest
17:33
Speaker 3: having a check to your mortgage advisor and your accountant
17:36
Speaker 3: just to get the best advice on both sides of
17:39
Speaker 3: the fence.
17:40
Speaker 1: Fair enough.
17:40
Speaker 2: Yeah, and uh, well it's good to know you were
17:43
Speaker 2: fiscally responsible though. Those eighteen dollars team of earbuds were
17:47
Speaker 2: a good attempt.
17:49
Speaker 1: Oh look at that. I got excited until seventy bucks.
17:52
Speaker 1: So yeah, I'm not going I'm not gonna hate. I'm
17:55
Speaker 1: not gonna be all stuff up.
17:58
Speaker 2: Yeah, Peter, I've got one more question for you. Have
18:00
Speaker 2: you just decided to get into proper property now? Is
18:04
Speaker 2: there is this a continuation of a property investment sort
18:06
Speaker 2: of policy you've got?
18:08
Speaker 1: No, I haven't been in them before. Gonna be asked,
18:11
Speaker 1: why now?
18:12
Speaker 2: Why?
18:12
Speaker 1: Now?
18:13
Speaker 2: Do you just think it's time for money? Okay?
18:18
Speaker 1: Yeah, I've got some money for my parents, but I've
18:24
Speaker 1: always looked at never been keen on residential to be honest.
18:28
Speaker 1: You just I just can't get it to work. Okay,
18:31
Speaker 1: So AWKD for six fifty. You know what's the return?
18:36
Speaker 1: You only get about four hundred bucks a week after
18:38
Speaker 1: paying body corporate and great.
18:40
Speaker 2: So what sort of property is that you're buying?
18:43
Speaker 1: Commercial? There there's like these new concrete slab buildings forty
18:49
Speaker 1: to one hundred square meters. Say, it's just basically a
18:51
Speaker 1: shell some of imazanine And.
18:55
Speaker 2: Okay, cool, and you've and in an area where you
18:58
Speaker 2: think you're not going to have a problem letting it.
19:01
Speaker 1: Yeah, I mean it's in West wester sorrys them on you,
19:05
Speaker 1: Good luck on both of them. Both of them have been.
19:08
Speaker 2: I oh, good, well done, good on you. Okay, hey,
19:13
Speaker 2: thanks for call.
19:14
Speaker 1: It turns a much better as well.
19:15
Speaker 2: Well. Actually, I tell you what he has raised a
19:17
Speaker 2: question I've always wondered about. Thanks Peter. You know, that
19:21
Speaker 2: feels like it involves a lot more courage commercial property.
19:26
Speaker 3: I mean, the risks are a bit higher with commercial
19:29
Speaker 3: cash flow does tend to be stronger. But yeah, these
19:32
Speaker 3: pros and cons for both. You know, people always need
19:35
Speaker 3: somewhere to live, but they don't always need a premises
19:37
Speaker 3: to run their business out of. And economic downturns, I mean,
19:42
Speaker 3: look at how many vacant office spaces there are at
19:45
Speaker 3: the moment.
19:45
Speaker 2: Well, that's why I thought it was. On the face
19:48
Speaker 2: of it, it's quite a sort of bold move, but
19:50
Speaker 2: it sounds like he's got tenants already lined up or something,
19:53
Speaker 2: And I guess it's because you look around anywhere around
19:57
Speaker 2: New Zealand, the number of empty premises I would have
19:59
Speaker 2: thought been commercial landlord would feel to the average punter
20:02
Speaker 2: quite a dicey proposition.
20:04
Speaker 5: Yeah.
20:04
Speaker 3: I mean, the fact that he's got cash to put
20:07
Speaker 3: into it is a huge help. So yeah, because that's
20:10
Speaker 3: going to keep his costs down a little bit in
20:12
Speaker 3: times of vacancy.
20:13
Speaker 2: So good on them.
20:15
Speaker 3: Right for everyone, No, but some people it works really well.
20:18
Speaker 2: We want your cause on eight hundred and eighty ten
20:20
Speaker 2: to eighty your take on the interest rate. But the
20:22
Speaker 2: other question, which actually sort of ties into it as well,
20:27
Speaker 2: is that over the course of doing the property our
20:30
Speaker 2: the wonder if ready your show over the last few years.
20:33
Speaker 2: For many of those years, I would say that property
20:37
Speaker 2: it's always felt like the thing that people were either
20:41
Speaker 2: in or they thought they should be in as an
20:43
Speaker 2: investor if they could. And one of the questions I
20:47
Speaker 2: had was that because basically the be all and the
20:49
Speaker 2: end all of investments for many Kiwis, and it has
20:51
Speaker 2: been for a long time, and it does feel at
20:55
Speaker 2: the moment, and maybe that's because of economic uncertainty and
20:58
Speaker 2: unemployment and inflation all the sorts of things. I'm sure
21:02
Speaker 2: uncertainty and the economy is not rock and rolling, does it.
21:06
Speaker 2: Is it a fair comment to say that it's not
21:08
Speaker 2: quite the center of attention as it once was, and
21:11
Speaker 2: it's that might persist for a little longer.
21:14
Speaker 3: I think this is a perfectly normal stage of the
21:16
Speaker 3: property cycle. So you know, it's called a buyer's market,
21:20
Speaker 3: and I've said this before, it's a buyer's market. The
21:22
Speaker 3: clues in the name. There's a lot, there's a lot,
21:26
Speaker 3: but there are a lot more sellers than buyers at
21:29
Speaker 3: the moment, so the opportunities are there. You can take
21:32
Speaker 3: your time with negotiating, you can get better deals in
21:36
Speaker 3: the current market. So you know, this is the stage
21:39
Speaker 3: where serious investors often start to step back in, because
21:44
Speaker 3: the downside of a buyer's market is that lending is
21:47
Speaker 3: usually the challenge, you know, getting lending because banks are
21:50
Speaker 3: risk averse, so they tighten up their lending criteria when
21:55
Speaker 3: we're going through a bit of a downturn and the
21:57
Speaker 3: property market. So if you can get lending, it's a
21:59
Speaker 3: great time to be out there buying. And I'm saying
22:02
Speaker 3: this you know, we don't sell property, but it is
22:05
Speaker 3: it's a great time to be out there buying because
22:07
Speaker 3: the opportunities are there. Peter was right. Cash flow is
22:11
Speaker 3: not as easy to find as it was, you know,
22:14
Speaker 3: in the global financial crisis, for example. But we're seeing
22:18
Speaker 3: the best yields that we've seen in years, well over.
22:21
Speaker 2: Five years, sorry, the best yields and what.
22:23
Speaker 3: Best rental returns? And over five years?
22:27
Speaker 2: Really?
22:28
Speaker 3: Yeah? Why not lying?
22:32
Speaker 2: No? No, no, I don't mean really as and I
22:34
Speaker 2: don't believe you, but it's why do I what is
22:39
Speaker 2: so much of the rhetoric around it talk about oh,
22:43
Speaker 2: well the returns are you talking about the gross returns
22:45
Speaker 2: rather than the returns before you take into account what
22:49
Speaker 2: you're paying on a your mortgage and all that.
22:50
Speaker 3: Sort of so either way, you know, net returns, gross yield,
22:54
Speaker 3: net yields. Yeah, they're all affected, but absolutely the highest
22:58
Speaker 3: yields that we've seen in a lot time. And it's
23:01
Speaker 3: because house prices have dropped and now they're pretty stable.
23:05
Speaker 3: But rents have also been increasing and they's stable now
23:09
Speaker 3: in a lot of parts of the country as well.
23:11
Speaker 3: But you know, when prices come down and rents increase,
23:15
Speaker 3: we see those rental routines start to climb.
23:18
Speaker 2: Back up. I think also when you said five years,
23:20
Speaker 2: I forget that. It's actually like, it's almost five years
23:24
Speaker 2: since we got COVID, isn't it. Yeah, so maybe that's
23:28
Speaker 2: not as surprising because we have been through a very
23:30
Speaker 2: tumultuous time over the past five years. In fact, that
23:33
Speaker 2: has actually quite a shock to me when I think,
23:35
Speaker 2: what was it when did COVID hit? Was it? Oh,
23:38
Speaker 2: my goodness, it is I know, five years criky. That's
23:40
Speaker 2: a bit frightening. Yeah, eight hundred and eighty ten eighty.
23:43
Speaker 5: Yeah.
23:43
Speaker 2: I mean, does that if you're listening, does that signal
23:46
Speaker 2: to you that this is the time when we're all
23:49
Speaker 2: going to look back and you're going to say, oh,
23:51
Speaker 2: I remember that time when it was really quiet. That
23:52
Speaker 2: was probably the time I should have been marshaling my
23:54
Speaker 2: troops and sort of working out what my plan was.
23:57
Speaker 2: And I realized that for people who haven't got their
23:58
Speaker 2: first house yet, that talk that investment property is well,
24:02
Speaker 2: we're not just talking about investment property, which about any
24:04
Speaker 2: sort of.
24:04
Speaker 3: Property I'm to buy home, you know, I mean, look
24:07
Speaker 3: at how much choice you've got out there at the moment.
24:09
Speaker 3: There's you know, there's plenty of listings to choose from,
24:12
Speaker 3: and you don't have to feel pressured to purchase. So yeah,
24:16
Speaker 3: the opportunities are there. And my opinion is, I mean,
24:19
Speaker 3: I don't know when the property market's going to boom.
24:22
Speaker 3: No one does. I'm certainly not expecting it to happen
24:25
Speaker 3: until the economy starts to really recover because at the moment,
24:28
Speaker 3: a lot of people are still worried about their jobs,
24:31
Speaker 3: you know. So I think once the economy is a
24:33
Speaker 3: lot stronger, we will start seeing more and more people
24:36
Speaker 3: entering into the property market, and that's when we're going
24:39
Speaker 3: to see prices start increasing, and that's when people will
24:42
Speaker 3: go should have, could have? Would should have?
24:46
Speaker 2: Could what? Could have? Shoulder?
24:48
Speaker 3: Yeah, but we get that all the time, you know.
24:52
Speaker 3: And this is something else that I say a lot
24:54
Speaker 3: as well. Every day we meet investors that say, you know,
24:58
Speaker 3: I wish we'd started ten years. I've never met an
25:01
Speaker 3: investor that said I wish I'd waited.
25:04
Speaker 1: No.
25:04
Speaker 2: In fact, I'd say even people who buy their first time,
25:06
Speaker 2: ah well, I mean, if you bought your first time
25:08
Speaker 2: in your mortgage, I wonder if there is a time
25:12
Speaker 2: when you'd ever regret buying a property. That's an interesting question.
25:14
Speaker 2: Be interesting to hear from people. I guess the question
25:16
Speaker 2: would be, if you've got regret is that you didn't
25:19
Speaker 2: plan for the contingency that might have been for something
25:22
Speaker 2: that was lying ahead, which is not always easy to predict.
25:25
Speaker 3: Sometimes there's unforeseen circumstances, you know, Like I mean, people
25:29
Speaker 3: could say that they regret purchasing at the peak of
25:31
Speaker 3: the boom, you know, just before the property values.
25:34
Speaker 2: I feel that would suck, That would be honest, that.
25:36
Speaker 3: Would feel like a kick in the guts. But you
25:38
Speaker 3: only lose money and property if you sell it for
25:41
Speaker 3: less than you paid for it. And home buyers, if
25:44
Speaker 3: they purchased at the peak of the boom, they might
25:46
Speaker 3: not have been able to get lending when prices dropped down.
25:49
Speaker 2: Yeah, that's one of the things people forget, isn't it
25:51
Speaker 2: That the equation is never as simple. It's not exactly
25:55
Speaker 2: the same every time, and you've just bought at the
25:57
Speaker 2: high market the other side of it, As people would
26:00
Speaker 2: remind us back in the days when those ridiculous eighteen
26:02
Speaker 2: percent you know whatever it was, the seventies or eighties,
26:06
Speaker 2: but the houses were a lot cheaper. But there's always
26:10
Speaker 2: that well, okay, houses were cheaper, but interest rates were horrendous,
26:13
Speaker 2: and maintaining it was expensive versus houses are really expensive,
26:16
Speaker 2: but interest rates are very little. Unfortunately, when it you know,
26:20
Speaker 2: when it all changed and the interest rates crept up,
26:21
Speaker 2: that's when people got caught out. Was it ten percent
26:23
Speaker 2: of is it still ten percent of the property sales
26:26
Speaker 2: selling at a loss? There was some stat recently about that.
26:30
Speaker 3: There was DM well, I can't remember, it's definitely reduced.
26:34
Speaker 2: We'll drum that one up in the break that I'm
26:36
Speaker 2: able to chat with Debi as well about just I
26:40
Speaker 2: think it'd be useful for people, especially if you're looking
26:42
Speaker 2: at playing around with fixing short or long term. What
26:46
Speaker 2: role does the floating rate play and how long should
26:50
Speaker 2: you play around with maybe just being on the floating
26:52
Speaker 2: rate for a bit, because I think that's the bit
26:53
Speaker 2: that seems terrifying in a way, because the floating can
26:57
Speaker 2: be quite high. But if you do it right, you
26:59
Speaker 2: might say yourself a bundle. We talked about that after
27:01
Speaker 2: the break. Excellent, excellent, God, I'm glad you nodded at
27:04
Speaker 2: that one. Right, will be it's twenty three minutes to
27:07
Speaker 2: five to five news talks. It'd be so right, Yes,
27:26
Speaker 2: welcome back to the week in collective dat don't forget.
27:28
Speaker 2: Shortly we'll be doing the one roof Property of the
27:29
Speaker 2: Week as well, and it's always they're always gorgeous properties
27:32
Speaker 2: and when I always advise it that you can take
27:33
Speaker 2: a little holiday just by checking out our recommendations for
27:36
Speaker 2: Property of the week. But right now it is the
27:38
Speaker 2: one roof Rady Show. My guest is Debbie Roberts, and
27:41
Speaker 2: we're talking a little bit about the o CR and
27:43
Speaker 2: you know, it's a constant game, isn't it working out
27:45
Speaker 2: whether the bank Reserve Bank's going to do They've said
27:47
Speaker 2: they're going to indicate that they're going to reduce it further. Debbie,
27:50
Speaker 2: how often should what would your advice or your comments
27:53
Speaker 2: be around using the floating rate because it's a lot
27:57
Speaker 2: more expensive and if you let yourself sit on the
27:59
Speaker 2: floating for too long you can hemorrhage quite a bit
28:01
Speaker 2: of money. If you've got any thoughts on tactics around
28:04
Speaker 2: you know, just maybe waiting a little bit longer for
28:06
Speaker 2: that or maybe six month versus floating. How do you
28:09
Speaker 2: do those equations?
28:10
Speaker 3: Yeah, so there is a calculation that you can use
28:13
Speaker 3: to work out what's the best thing for you to do.
28:15
Speaker 3: But generally speaking, I would suggest if you're thinking about floating,
28:21
Speaker 3: you'd want to be doing that for a very short
28:23
Speaker 3: time at the moment, because the six month rates are
28:25
Speaker 3: pretty attractive. You know, we're seeing six month rates below
28:29
Speaker 3: six percent now, so once you've negotiated. So yeah, so
28:34
Speaker 3: those are pretty attractive rates, and the difference between that
28:38
Speaker 3: and the floating rate is quite significant. So I was
28:42
Speaker 3: talking to a client last week, a couple of clients actually,
28:45
Speaker 3: and they were on a floating rate because their interest
28:49
Speaker 3: rates by just a couple of days before the OCR announcement.
28:53
Speaker 3: So I said to them, let's wait and see where
28:56
Speaker 3: the banks settle, and they were comfortable on the floating rate.
29:01
Speaker 3: So it's like, let's wait and see what happens over
29:03
Speaker 3: the next few days. But that was like, you know,
29:05
Speaker 3: they're on a floating rate for a few days as
29:07
Speaker 3: opposed to a few months.
29:09
Speaker 1: Yeah.
29:10
Speaker 2: I don't know why I felt so when I was
29:12
Speaker 2: coming off our mortgage was coming up for you know, renewal, refreshment, refreshment,
29:17
Speaker 2: whatever it is, but yeah, it was coming off its
29:19
Speaker 2: fixed term. I just felt, really I felt a little
29:23
Speaker 2: bit for some reason. Intuitively, I just didn't want to
29:26
Speaker 2: feel I'd flicked onto that floating rate for even a minute.
29:30
Speaker 2: Is that that's just an illogical thing, isn't it. No,
29:33
Speaker 2: it doesn't mean any that.
29:34
Speaker 3: I think it's quite common. I think it's quite common.
29:36
Speaker 3: You know, a lot of people do refix their interest
29:39
Speaker 3: rates before it expires, so they choose to, you know,
29:43
Speaker 3: accept the going rate and then have it automatically convert
29:47
Speaker 3: to the new rate, so instead of going on to
29:50
Speaker 3: a floating rate first. But I think if you've got
29:53
Speaker 3: lump sums of cash, for example, like if you've got savings,
29:56
Speaker 3: if you let it, if you let it float, pay
30:00
Speaker 3: off a lump sum and then refix, you know that
30:03
Speaker 3: there's no early repayment penalties for doing that. So talk
30:06
Speaker 3: to your mortgage advisor, is my advice.
30:08
Speaker 2: Well, to be honest, the bank was my mortgage advisor,
30:11
Speaker 2: because my mortgage, you know, I've been we've had it
30:14
Speaker 2: for a little while, it's come down, and even actually
30:17
Speaker 2: my mortgage advisor said, look, I mentioned the rate the
30:20
Speaker 2: bank hat offered, and he said, look, that's good enough.
30:22
Speaker 2: You don't need to worry about me, or you can
30:23
Speaker 2: just do the deal. And so since then I've sort
30:25
Speaker 2: of been a bit more responsible for men banking, even
30:27
Speaker 2: though I'm sure I can call him any time and
30:29
Speaker 2: have a chat.
30:29
Speaker 3: I saw an interesting thing recently that said that a
30:32
Speaker 3: lot of people will think that it costs you to
30:35
Speaker 3: work with mortgage advisors, and that stunned me. It costs
30:38
Speaker 3: you nothing to work with a mortgage advisor, but they
30:42
Speaker 3: work in your best interests. And one of the best
30:45
Speaker 3: things about mortgage advisors at the moment, in my opinion,
30:49
Speaker 3: is that the banks are offering cash back deals. So
30:52
Speaker 3: if it's right for you to refinance to another bank,
30:55
Speaker 3: you could get up to one percent cash back.
31:00
Speaker 2: See Okay, I'm instantly suspicious.
31:05
Speaker 3: Well, there are clallback periods which.
31:08
Speaker 2: I'm suspicious thinking you're offering me cash back. Why don't
31:12
Speaker 2: just offer me something longer term rather than just a
31:15
Speaker 2: little frivolous thing and precurringg to me to go out
31:17
Speaker 2: and buy a TV or something.
31:18
Speaker 3: Yeah, so that well, the cash back deals can be
31:21
Speaker 3: used for a number of different things. But you know,
31:24
Speaker 3: one of the benefits of the cash back for the
31:26
Speaker 3: bank is that it locks you in, so you're not
31:29
Speaker 3: going to be refinancing within the next three to four years.
31:32
Speaker 3: Otherwise you'll have to pay some of that cash back back.
31:36
Speaker 3: So yeah, it buys your loyalty so to speak, so
31:42
Speaker 3: you know, but it benefits you is the consumer, I.
31:45
Speaker 2: Guess it swings and roundabout so long as you know
31:47
Speaker 2: what the deal is and you know what you're committing to. Yeah,
31:50
Speaker 2: because because nothing what is it? I can't mean but
31:54
Speaker 2: some sort of play or musical. There are plenty of
31:57
Speaker 2: lines in literature about nothing. Nothing comes free, and it's
32:00
Speaker 2: probably when a cash back there's always that extra commitment.
32:04
Speaker 2: And does that mean that you are going to struggle
32:06
Speaker 2: to get a better rate once you refix with the bank?
32:09
Speaker 2: Do they?
32:09
Speaker 3: No, not at all, So I mean like that, We've
32:13
Speaker 3: always even before I was accredited as a mortgage advisor,
32:16
Speaker 3: we've always recommended people work with mortgage advisors because they
32:21
Speaker 3: work for you. They don't work for the bank. If
32:24
Speaker 3: you go directly to the bank, you know, it's not
32:28
Speaker 3: necessarily true that a mortgage advisor might be able to
32:30
Speaker 3: negotiate you a better rate than what you could negotiate
32:33
Speaker 3: directly with the bank. But the mortgage advisor can look
32:36
Speaker 3: at all of the different options for you, and some
32:39
Speaker 3: banks are better than others for certain situations like if
32:43
Speaker 3: you're self employed, or if you're a first home buyer,
32:47
Speaker 3: or if you earn bonuses or commissions, like all the
32:50
Speaker 3: banks are quite different.
32:51
Speaker 2: But of course most mortgage advisors or brokers. What's the differen
32:55
Speaker 2: between mortgage advisor and a mortgage broker is anything?
32:57
Speaker 3: Nothing? That they all used to be called mortgage brokers.
33:00
Speaker 2: With that breaggage advisor sounds friendlier. It just sounds friendly,
33:03
Speaker 2: doesn't It's like, yes, mortgage broker sounds a bit more,
33:08
Speaker 2: sounds a bit more ruthlessas mortgage advisor sounds like have
33:11
Speaker 2: a cup of tea, sit down, you know, let's have
33:13
Speaker 2: a chat, and yes, we can help you with that.
33:14
Speaker 3: Yeah, I think, I mean, and this is just me
33:17
Speaker 3: spitballing the reasons they chose that.
33:20
Speaker 2: I was just doing that.
33:21
Speaker 3: But I think it was originally used as a term
33:24
Speaker 3: mortgage broker because the mortgage broker brokeer the deal. But
33:29
Speaker 3: now it's all about the financial advice, you know, specific
33:32
Speaker 3: to you as an individual. So I think that's why
33:36
Speaker 3: they changed it to mortgage advisor.
33:38
Speaker 2: Okay, I had a hot question on that, but I've
33:40
Speaker 2: completely forgotten it. And in the argument about semantics, so
33:43
Speaker 2: I got some texts here. Who pays mortgage brokers?
33:47
Speaker 3: Oh, they get paid by the banks.
33:49
Speaker 2: And how is that? Yeah? And do they have relationships
33:52
Speaker 2: with specific banks or everyone? Different?
33:55
Speaker 3: So the banks do very little bit, but not much
33:59
Speaker 3: as far as how much commission they pay to the
34:01
Speaker 3: mortgage advisors. Certainly not enough to make a mortgage advisor
34:04
Speaker 3: pick one bank over another one. So at least I've
34:07
Speaker 3: never met a mortgage advisor that does that.
34:10
Speaker 2: But do mortgage advisors have does each one have a
34:15
Speaker 2: closer relationship with a couple of banks? Shall we say
34:17
Speaker 2: all particular arrangement where you put your business through us,
34:21
Speaker 2: than these are the rates we're going to be able
34:23
Speaker 2: to offer you type of thing.
34:24
Speaker 3: No, no, because mortgage advisors are legally obliged to work
34:28
Speaker 3: in the best interests of their client, not their best
34:31
Speaker 3: interests for themselves.
34:32
Speaker 2: Oh no, no, no, no, no. What I mean is no,
34:36
Speaker 2: I guess what I mean is you could still be
34:39
Speaker 2: acting in the best interests by having a relationship with
34:41
Speaker 2: a bank where your ongoing relationship with the means you're
34:46
Speaker 2: going to have fantastic rats to off for your customer
34:48
Speaker 2: that aren't going to be you know what I mean?
34:50
Speaker 3: Yeah, No, I think years ago banks used to have
34:54
Speaker 3: a requirement that mortgage advisors had to submit a certain
34:58
Speaker 3: amount of loans to each in order to keep their
35:02
Speaker 3: bank accreditation. That does not exist anymore. So now mortgage
35:06
Speaker 3: advisors really can shop around to get the best deal
35:09
Speaker 3: for the individual, so you know, and if you go
35:12
Speaker 3: directly to your bank, they can only give you advice
35:14
Speaker 3: about this stuff.
35:15
Speaker 2: Excellent. Right, we're going to come back with the one, well,
35:17
Speaker 2: the one we've properly the week is next and then
35:19
Speaker 2: we might be a squeezing some more texts and maybe
35:22
Speaker 2: even a call if you give us call on one
35:23
Speaker 2: hundred eight ten eighty. It's twelve minutes to five news talk,
35:25
Speaker 2: said b Shream.
35:26
Speaker 4: On the do'n't imagine? Now come when will you realize?
35:35
Speaker 4: Be in a way?
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Speaker 2: Yes, Welcome back to the Weekend Collective onton BIGE. My
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Speaker 2: guest is Debbie Roberts. She is an investment coach at
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Speaker 2: Property Apprentice. You can go to Property Apprentice dot co
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Speaker 2: dot nz and they have weekly property seminars you can
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Speaker 2: go and roll for and go and have a listen
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Speaker 2: and see what they've got to say and take it
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Speaker 2: from there. But right now it is eight minutes to
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Speaker 2: five the one roof property of the week on the
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Speaker 2: weekend collective. I get property envy every time I have
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Speaker 2: a look at the one roof property of the week,
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Speaker 2: and this is a perfect example. It is one Chimney Lane,
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Speaker 2: Jack's Point, Queenstown. Even the name is sort of evocative
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Speaker 2: of something, isn't it, even if you don't know what
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Speaker 2: it is. It's four bedrooms, two bathrooms, two car garage.
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Speaker 2: It's two hundred and fifty square meters house, which is
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Speaker 2: you know, that's a pretty generous size, with an estimated
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Speaker 2: value of around two and a half million bucks two
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Speaker 2: point six million. It's not yet two years old. It's
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Speaker 2: a single level, two hundred and fifty square meter home,
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Speaker 2: as I mentioned, position, beautifully across an elevated sight, unobstructed
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Speaker 2: views in all directions, catching all day sun. And it's Debbie.
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Speaker 2: I've shown you a copy, a link to it. How
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Speaker 2: would you describe the property?
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Speaker 3: Stunning views, absolutely stunning views, aren't they? And that outdoor
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Speaker 3: fire I mean stop well, I.
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Speaker 2: Mean stop it. Put it out. I think it's probably
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Speaker 2: obligatory if you buy a sort of new wish property
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Speaker 2: in the Queenstown that you're going to have an outdoor
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Speaker 2: sort of concrete patio with some sort of pizza oven
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Speaker 2: or fire there somewhere, with a view of the Alps
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Speaker 2: in the background. But that's the thing that means most
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Speaker 2: views around Queenstown at least, you're just stuck in a
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Speaker 2: very unfortunate situation of just to die for, aren't they?
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Speaker 2: As they say, fabulous flow out to the superb Chronic Peak. Basically, yeah,
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Speaker 2: they look straight across from Jack's Point to Chronic Peak.
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Speaker 2: So if you're in the market for a home in
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Speaker 2: Jack's Point at Queenstown, go and check it out. Go
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Speaker 2: to the one roof site. Just look for one chimney
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Speaker 2: Lane two point six. Well, you know what, if you
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Speaker 2: ust be a bit of cash, buy your lotto ticket.
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Speaker 3: You don't very often profile real cheap properties, do.
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Speaker 2: You, No, we do. But actually, funnily enough, my producer
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Speaker 2: once put on a property which was actually more expensive
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Speaker 2: than the one and she didn't tell me, and as
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Speaker 2: I was going through it on the show, I was like, well,
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Speaker 2: this is not as flash as I hoped. And that's
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Speaker 2: why she was put it in mischievously, because she thought
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Speaker 2: that the asking price at three million dollars in Auckland was,
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Speaker 2: but much won't bag the property because they're trying to
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Speaker 2: sell it, So you know, good luck to them and
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Speaker 2: all that. But yeah, let's get back to a few
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Speaker 2: texts just before we wrap it up with only about
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Speaker 2: a couple of minutes to go. One who's oh we've
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Speaker 2: dealt with the one about who pays the mortgage brokers
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Speaker 2: in the end. Look, we're talking about the ocr it's
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Speaker 2: going to come down further. Yep, we'd be safe in
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Speaker 2: saying that talk to a financial advisor, mortgage advisor. But
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Speaker 2: it's unlikely you going to be fixing for longer than
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Speaker 2: a year, isn't it.
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Speaker 3: I think if you fixed for longer than a year,
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Speaker 3: you might regret that decision. But it does depend on
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Speaker 3: what other mortgages you've got going on and what your
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Speaker 3: situation is like. You wouldn't be fixing for over a
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Speaker 3: year if you were thinking of selling the property's course,
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Speaker 3: So yeah, there's lots of things to take into account.
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Speaker 3: Just one other thing I wanted to mention quickly when
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Speaker 3: I said that we do weekly events, we're taking a
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Speaker 3: break over Christmas. Yeah, I know I need a rest.
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Speaker 3: So we've got two more events before the end. Of
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Speaker 3: this year. So if you want to, if you want
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Speaker 3: to get my own take my opinion on what's happening
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Speaker 3: and update and all that sort of stuff, then jump online.
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Speaker 2: It sounds like you're working. I mean, that's pretty much
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Speaker 2: like working right up. You've got another couple to go. See.
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Speaker 2: You're taking your step stopping a bit week in, a
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Speaker 2: bit before Christmas. I guess.
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Speaker 3: Yeah, then we take a few weeks off.
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Speaker 2: When are you back in action next year?
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Speaker 3: Middle of January?
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Speaker 2: Oh well, I mean that's almost like the stats plus
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Speaker 2: a few, isn't it.
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Speaker 1: I know?
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Speaker 3: Yeah, Well, good on.
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Speaker 2: Ye Hey, thanks so much for it. Thanks so much
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Speaker 2: for being part of the show too. And you have
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Speaker 2: bought my producer and I a little bit of a
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Speaker 2: treat for Christmas. So probably I don't think it'll make
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Speaker 2: Christmas start. It will be gone by the end of
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Speaker 2: the end of the weekend.
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Speaker 3: I'd say it wouldn't last twenty four hours in my house.
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Speaker 2: Actually, just one quick question, we've got about a minute
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Speaker 2: to go. With the seminars you do, do they generally
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Speaker 2: sort of on a similar theme or do you just
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Speaker 2: sort of make some matches you go with the people
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Speaker 2: are doing the introductory sort of stuff.
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Speaker 3: I update them every week, so they do change from
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Speaker 3: week to week. But you know I do tend to
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Speaker 3: redo them at least once a year, so start from scratch,
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Speaker 3: you know, mix it up a little bit.
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Speaker 2: So good stuff. Hey, you have a merry Christmas? Can
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Speaker 2: we is it too soon for that? Tomorrow? Wee can say.
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Speaker 3: Charmis decorations out all we do?
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Speaker 2: That's right.
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Speaker 4: Anyway?
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Speaker 2: Hey, thanks very much that properly apprentice dot co dot nz.
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Speaker 2: You can go and check out the Hour of course.
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Speaker 2: Look look for the Weekend Collective podcast on iHeartRadio. Next,
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Speaker 2: as the Parents Squad, Katherine Burkett is joining us about
40:39
Speaker 2: how much stress you should allow your kids to have
40:41
Speaker 2: and also managing their commitments. Back soon